Trading update for the quarter October 2015 to December 2015 PPC Ltd (Incorporated in the Republic of South Africa) (Company registration number: 1892/000667/06) JSE Code: PPC ISIN: ZAE000170049 ("PPC" or the "Company") Trading update for the quarter October 2015 to December 2015 PPC’s expansion remains well on track and we are pleased to advise that construction at our sites in the Democratic Republic of the Congo (DRC), Zimbabwe and Ethiopia is in line with expectations. With effect from 18 December 2015, final anti-dumping duties were imposed on Portland cement originating in or imported from Pakistan. These duties will remain in place for the next five years. Progress with our new strategy is underway and the proposal to acquire 3Q Mahuma Concrete (Pty) Limited is in line with our stated intent of becoming a provider of materials and solutions into the basic services sector and also progressing the company’s ready-mix channel management strategy. Overall cement sales volumes (including channel management) declined by 3% for the first trading quarter of 2016. Cement sales in the South African business declined by 1.6% while the international businesses recorded an 8% decline; including low margin cement exports to other African countries. Despite the tough South African operating environment, coastal regions achieved positive volume growth however this was more than offset by declines recorded in the increasingly competitive Gauteng and inland regions. For the same period, average selling prices decreased by 4%. The conclusion of major infrastructure projects in Zimbabwe has led to double digit declines in local sales and cement exports have also reduced significantly on the back of exchange rate effects. After a strong performance in 2015, cement sales volumes in Botswana have reduced as the retail market remains highly contested due to weak demand and intense competitor activity. During the first quarter of 2016, cement sold by our operation in Rwanda more than doubled at the expected EBITDA margin. High rainfall in the local market coupled with constrained export opportunities had a negative impact on sales. The new 600 000 ton per annum plant is performing satisfactorily and the kiln has passed its performance test regarding output and heat consumption. Performance in the lime division was negatively affected by the performance of the local steel and alloys industry. New projects secured by the Aggregates and Pronto divisions led to improved performance. Normalised earnings for the first half of 2016 are anticipated to reflect a year-on-year decline on the back of a tough operating environment and increased interest charges due to the ramping-up of the Rwanda operations. While the South African and rest of Africa trading environment continue to face headwinds, we believe that our various response strategies have positioned PPC well to limit the impact on the group. PPC will continue with its focus on the Profit Improvement Programme which continues to deliver solutions for sustainable long term value creation. Any forecast financial information on which this trading update is based has not been reviewed by the company´s auditors. BL Sibiya Chairman of the board 25 January 2016 Sponsor: Merrill Lynch South Africa (Pty) Limited Date: 25/01/2016 12:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.