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Operational update
Sephaku Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/003306/06)
Share code: SEP
ISIN: ZAE000138459
Operational update
Sephaku Cement established as the newest producer as it increases market presence and
ramps up annualised capacity utilisation to over 60%.
Following the release of the Dangote Cement PLC (“Dangote”) results on 26 March 2015 ,Sephaku
Holdings Limited (“SepHold”) a joint partner with Dangote and owning 36% of Sephaku Cement Pty
Ltd (“SepCem”), is pleased to confirm that SepCem achieved total revenue of R919 million for the
financial year ended 31 December 2014 with R405 million attained in the fourth quarter.The highly
experienced marketing team was able to successfully enter all market segments and the SepCem
brand is being distributed by all the major four retailers.
Production of clinker from the Aganang integrated plant (“Aganang”) started in August 2014 with
cement production from the same plant commencing in October 2014. Prior to the internally produced
clinker,SepCem was manufacturing cement utilising well sourced purchased clinker.The introduction
of the internally produced clinker has significantly improved variable cost effeciencies by 50% for
SepCem. By the end of the fourth quarter of calender year (“CY”) 2014, SepCem was achieving c26%
EBITDA which is comparative to the industry average inspite of production not yet fully ramped up for
both plants. Combined annualised production capacity utilisation was at approximately 60% by end of
December 2014 with steady state utilisation targeted for end of the second quarter CY 2015 subject
to demand. The modern technology at both plants with state of the art components has further
improved effeciencies and established SepCem as the lowest cost producer in the industry.
The Delmas milling plant (“Delmas”) performed well for the year inspite of a slow start due to the
unusually high rainfall. By the end of the fourth quarter Delmas was at approximately 100% capacity
utilisation as the Aganang cement production began ramping up. Good quality consistent cements
and customer service were instrumental in enabling the successful entry into high demand markets
such as Gauteng , Limpopo and Mpumalanga. The SepCem conducted comparative cement in
concrete test demonstrated that the SepCem brand had superior performance to competitors in the
32,5 product and matched the best performing incumbent on the 42,5 product. Since August 2014 ,
Delmas has been utilising Aganang clinker to produce cement and over 80% of the ash produced at
Sephaku’s Kendal Ash facility
SepHold is pleased to state that the cement market has widely and positively accepted SepCem as a
mainstream producer and SepCem is well positioned to further entrench itself as a formidable cement
manufacturer in South Africa
Métier’s consistent performance continues to distinguish it as a highly profitable mixed
concrete producer.
Métier Mixed Concrete (Pty) Ltd (“Métier”) a wholly owned subsidiary continues to increase its
customer base in Gauteng and is achieving repeat business from its traditional customers due to the
specialised skills and customer service offering. To date Métier has built 11 plants with the fourth
Gauteng plant commencing production on 22 September 2014. All the plants are currently operating
at full capacity and Métier remains focussed on achieving relatively high margins through the creation
and production of specialised concretes.
SepHold is pleased to state that investor interest continues to increase as the Métier and SepCem
deliver against stated targets. The highest share price of R9.01 has been reached in a 52 week
period during which the lowest price has been R5.15. The volumes and value traded have also
increased as more institutional shareholders purchase the shares.
Analyst site visit – Aganang integrated plant
SepHold is hosting an analyst site visit to Aganang on 31 March 2015 and the presentation can be
downloaded from the website www.sephakuholdings.com from 10h00.
Authorised by
Chief executive officer
Dr. Lelau Mohuba
30 March 2015
_________________________________________________________________________________
Enquiries contact: Sakhile Ndlovu Sephaku Holdings Investor Relations 012 612 0210
Sponsor to Sephaku Holdings: Questco (Pty) Ltd
About Sephaku Holdings Limited
Sephaku Holdings Limited (SepHold) is a building and construction materials company with a portfolio of investments in the
cement sector in South Africa. The company’s core investments are a 36% stake in Sephaku Cement (Pty) Ltd and 100% in
Métier Mixed Concrete (Pty) Ltd. SepHold’s strategy is to generate income and realise value for shareholders through the
production of cement and ready-mixed concrete in southern Africa.
www.sephakuholdings.com
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