Wrap Text
Reviewed Condensed Consolidated Results for the six months ended 30 September 2016
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
ZSE code: PPC
JSE code: PPC
Reviewed condensed consolidated financial statements for the six months ended 30 September 2016
- Balance sheet de-geared with the group debt to EBITDA ratio reducing to 2,6 times from 3,8 times
on the back of a successful rights issue
- Cash generated from operations up 58%
- Group cement sales volumes up 13%
- Group revenue of R5,2 billion up 15%
- Group EBITDA maintained at R1,2 billion
- Reduced profit of R58 million as a result of a 54% increase in finance costs due to the liquidity event;
consequently headline earnings per share down 66% to 14 cents
- Normalised headline earnings per share down 16% to 36 cents
- Harare mill commissioned on time and under budget while Rwanda ramp-up exceeds 50% capacity utilisation
COMMENTARY
Darryll Castle, CEO, said: "The successful completion of the rights issue allowed us to significantly reduce debt
levels and strengthen our balance sheet against the cyclical nature of our business. PPC's diversified portfolio of
businesses delivered a 15% increase in group revenue and a 13% increase in group cement sales. Gross profit improved 6% due
to product pricing pressures which persist across the portfolio. CIMERWA, our plant in Rwanda, achieved cement sales volumes
of 148 000 tonnes, increasing its contribution to group cement sales volumes to 5% and contributing more than 10% to
group EBITDA. The Zimbabwe milling plant in Harare (Msasa) was hot commissioned on time and under budget and has sold its
first 1 000 pallets of bagged cement. Our projects in the DRC and Ethiopia are both at advanced stages and will be
commissioned in the 2017 calendar year."
Financial review
PPC group performance compared with six months to March 2016
In line with IFRS requirements and following the recent change in the company’s financial year end, financial
performance for the six-month period ended September 2016 is compared to the last reported period, being the six months to
March 2016. The impact of the seasonality of the reporting periods needs to be borne in mind in fully understanding the
performance of the group.
PPC reported revenue of R5,2 billion for the six months reporting period compared to R4,6 billion for the six
months ended 31 March 2016. The 15% increase is attributable to higher group cement sales volumes, specifically in South
Africa where cement volumes were up 13% and Rwanda where volumes were up 19% to 148 000 tonnes.
Revenue in our lime business increased by 6%, while our aggregates and readymix operations, including the recently
acquired 3Q Mahuma Concrete (Pty) Ltd (3Q), experienced double digit revenue growth. 3Q contributed R80 million to the
revenue of the materials business from July 2016 although making a marginal contribution to EBITDA.
The group's solid cost management continued. Variable delivered cost of sales per tonne in the South African cement
business was up 4%, however, group cost of sales of R3 838 million was 18% higher than the previous period (March 2016:
R3 261 million), mainly due to increased sales volumes, kiln shutdowns and the consolidation of the 3Q business. The group
continues to derive benefits from its profit improvement programme.
Administration and other operating expenditure increased 18% to R577 million (March 2016: R489 million), driven mainly
by the acquisition of the 3Q readymix business and the timing of expenses.
Group EBITDA was flat at R1 146 million (March 2016: R1 144 million) while the EBITDA margin of 22,2% (March 2016:
25,4%) was negatively impacted by selling price pressures and the timing of administration and other operating expenses.
EBITDA comparison per segment
September March %
2016 2016 change
Rm Rm
RSA 754 793 (4,9)
Cement 559 624
Lime 96 96
Aggregates and readymix 99 73
INTERNATIONAL 392 351 11,7
Cement 388 348
Aggregates and readymix 4 3
TOTAL 1 146 1 144 0,2
Finance costs were R509 million, up 54% on the previous period's R330 million, following R195 million in costs
incurred for the liquidity and guarantee facility as well as other related costs. Foreign exchange losses on foreign currency
monetary items of R87 million were recorded, the bulk of which relate to unfavourable currency movements against the
US dollar in the DRC and Rwanda.
Taxation was 58% lower at R66 million (March 2016: R156 million) due to the lower profitability realised in this
period. However, the effective taxation rate increased to 53% as a result of withholding tax on dividends declared from
Zimbabwe and the impact of non-deductible finance costs on the BBBEE transaction.
Due to increased finance costs and revaluation losses on the foreign currency monetary items, together with the
non-recurrence of the prior period's exceptional profit on the sale of non-core assets, net profit attributable to PPC
shareholders declined by 72% to R102 million (March 2016: R369 million). In line with this, earnings per share was 76%
lower at 13 cents per share (March 2016: 54 cents per share) and headline earnings per share declined 66% to 14 cents per
share (March 2016: 41 cents per share). Normalised earnings per share ended 16% below those of the prior period at
36 cents per share (March 2016: 43 cents per share) and normalised headline earnings per share ended 16% down at 36 cents
per share (March 2016: 43 cents per share) as a result of the higher finance charges and foreign exchange losses.
Capital expenditure was R1 045 million (March 2016: R1 188 million), with R307 million used for the Slurry kiln 9
project in South Africa and the balance mainly on the DRC and Zimbabwe expansion projects. Group debt has reduced to
R5 914 million (March 2016: R9 171 million) following the receipt of proceeds from the rights issue, leading to a substantial
improvement in the group debt to EBITDA ratio which is now 2,6 times. When project finance debt is excluded, this ratio
drops further to 1,3 times reflecting a comfortably geared balance sheet at the centre.
Cash generated from operations was up 58% to R1 286 million (March 2016: R813 million) on the back of improved working
capital management. Similarly, the group cash-conversion ratio at 1,1 is above the 0,7 achieved in the previous period.
The company's dividend policy reflects its growth aspirations as well as having regards to the prudency of its capital
structure. In line with this, the directors have declared no dividend.
Operational review
Cement
PPC group cement revenue was up 12% to R4 131 million (March 2016: R3 700 million) while EBITDA decreased by 2% to
R947 million (March 2016: R972 million). Consequently, the EBITDA margin decreased from 26% to 23%, in this period.
South Africa
PPC's cement sales volumes were 13% higher, reflecting the impact of double-digit volume growth in the coastal
regions. The Western and Eastern Cape provinces continue to benefit from lower import activity coupled with sustained growth
in local infrastructure projects. Increased competitor activity has also impacted the inland regions, in particular
Gauteng, Mpumalanga and the North West. The Limpopo region, although under pressure, showed some resilience with positive
volume growth supported by the launch of the P&L house brand which is produced by PPC. Average selling prices declined 2%
for the period, consequently EBITDA for RSA cement declined 9%.
Comparing the reporting period to the six-month period ended September 2015, however, volumes were up 7% while
selling prices were 4% down. Cost of sales for the respective period was 3% higher than the prior period on a rand per
tonne basis.
International
Zimbabwe
Our Zimbabwe operations recorded overall volume increases while selling prices, in US dollars, declined. Authorities
have introduced cement import tariffs of US$100 per tonne, effective 1 October 2016. The Reserve Bank of Zimbabwe intends
to introduce Zimbabwe bond notes into the monetary system and the impact on the economy is currently uncertain, but
will be monitored.
If, however, we compare the reporting period to the six-month period ended September 2015, volumes were down 5% while
local pricing was down 10%.
Botswana
The increased cement capacity and competitiveness in the southern African region continues to affect pricing and
volumes. Market leadership was maintained by focusing on brand, operational efficiencies and cost competitiveness, which
together with the impact of seasonality of the different reporting periods, resulted in volume increases. EBITDA however
dropped in the reporting period.
If a like for like comparison is made to the reporting period to the six-month period ended September 2015,
volumes were down 2% while local pricing was down 12%.
Rwanda
All provisional acceptance certificates for the 600 000 tonne per annum plant have been issued and plant optimisation is
in progress. As planned, the plant is running at capacity utilisation levels above 50% and sold 148 000 tonnes of cement
in this period; increasing its contribution to group cement sales to 5% and contributing more than 10% to group EBITDA.
An EBITDA margin in excess of 30% was achieved, which is within the guided range. A national "buy, build and win"
competition, aimed at retailers and customers, was launched in September 2016 and will run until December 2016.
Volumes compared to the six-month period ended September 2015 were up over 150% while local pricing was down 2%.
MATERIALS BUSINESS
Revenue in the lime business of R406 million was up 6% (March 2016: R383 million) and EBITDA of R96 million was in
line with levels achieved in the prior period.
If, however, we compare the reporting period to the six-month period ended September 2015, volumes were down 12% while
pricing declined 2%.
In July 2016, PPC successfully concluded the acquisition of 3Q for R135 million via the issue of 17 565 872 PPC
shares. 3Q has been successfully integrated into the materials business as part of Pronto Readymix and favourably contributed
R80 million and R8 million to revenue and EBITDA, respectively and was earnings enhancing on a per share basis.
Aggregates and readymix revenues were 42% higher at R713 million (March 2016: R503 million) mainly due to the
consolidation of 3Q and improved sales volumes in the South African aggregates business. As a result, EBITDA rose 36% to
R103 million (March 2016: R76 million).
Readymix volumes were under pressure, however, pricing was maintained. Aggregates volumes up 1% with positive
price increases.
PROJECTS UPDATE
Democratic Republic of Congo
The EPC construction contract is complete and the Sinoma erection resources have been demobilised. Village housing is
complete and handover to operations is underway. Overall, construction on the project is ~90% complete. Société
Nationale d'Electricité (SNEL), the country's utility company, in a public-private partnership with PPC Barnet DRC, is
constructing a 13km overhead transmission line to supply power to the cement plant. During the month of October 2016, 28 of
41 towers were completed, with stringing planned to commence mid-November. Delays on the installation, however, mean the bulk
power supply will only be available at the end of December 2016. Generators have been deployed to progress cold
commissioning, however, hot commissioning will commence once bulk power is available. Sales of cement produced will commence
in February 2017, however, income statement benefits will only commence in the new financial year.
Zimbabwe
Construction of the US$82 million Msasa mill in Harare has been completed on time and US$3 million below budget. By
the end of October 2016, the project had achieved 1 127 668 lost-time injury free hours. The business has been using
own-cash resources thereby limiting debt drawdowns, consequently the project debt is expected to be US$20 million less than
the US$75 million initially anticipated. Hot commissioning commenced in August 2016 and to-date 33 bulk tanker loads and
1 000 pallets (2 000 tonnes) of bagged cement have been sold. Official performance testing began in October 2016 and has
been successfully completed on the cement milling plant. Performance testing on other equipment such as the rail
tippler and packer/palletiser is currently in progress and will be completed during the month of November 2016.
Ethiopia
The US$170 - 180 million, 1,4 million tonne per annum cement Habesha plant is scheduled for commissioning in the second
calendar quarter of 2017. Both PPC and South Africa's Industrial Development Corporation followed their rights in the
first capital raising, with PPC investing a further US$5,1 million in March 2016, increasing its shareholding to 35%.
Plant construction is progressing well, with overall project progress above 80%, civil construction 94% complete, mechanical
erection at 66% and 95% of equipment manufactured and delivered to site. The main plant power agreement with the
Ethiopian power authorities is in place and the contract for supply and construction of a 14km 132KV transmission line has
been awarded. Protracted negotiations over land compensation have resulted in a delay in the installation of a dedicated
line. Habesha will therefore make use of the shared line until the dedicated line is available.
Slurry
The new 1 million tonne per annum clinker production line (SK9) at PPC Slurry is on schedule for commissioning and
ramp-up in the first quarter of calendar 2018. Plant construction is progressing well with overall project progress at 44%
complete, civil construction 25%, mechanical equipment erection at 22% and structural steel erection 6%. Detailed
engineering is estimated to be 87% complete with 71% of equipment manufactured and delivered to site. Eskom's appointed
contractor for the upgrade of the existing PPC Slurry substation completed their site establishment and commenced with
construction works in October 2016. PPC is eligible for a section 12(I) tax allowance for the SK9 project of R350 million
which has been promulgated in the government gazette. The section 12(I) tax allowance is available to large manufacturers
establishing new or expansion projects which will be energy efficient and will focus on skills development.
GOVERNANCE
Board of directors and subcommittee changes
The board of directors (board) appointed Mr Peter Nelson as the chairman with effect from 20 October 2016. Mr Nelson
was appointed to the board as an independent non-executive director on 25 January 2015 and served as the interim chairman
since March 2016. He served as CFO of PPC Ltd during the period 2000 to 2003.
Following the company's annual general meeting on 31 October 2016, Ms Bridgette Modise, who retired by rotation,
decided not to make herself available for re-election. The board thanks Ms Modise for her dedicated service and valuable
contribution during one of the most challenging periods in the company's history.
As a consequence, Ms Nicky Goldin was elected as the third member of the audit committee joining Mr Todd Moyo and
Mr Tim Ross. Ms Goldin was appointed to the board as an independent non-executive director in January 2015 and currently
serves on the remuneration and investment subcommittees of the board.
Mr Timothy Leaf-Wright was appointed as chairman of the risk and compliance committee. Mr Leaf-Wright is a chartered
secretary and was appointed to the board as an independent non-executive director in January 2015. He currently serves as
a member of the risk and compliance, social, ethics and transformation, and investment committees.
2008 BROAD-BASED BLACK ECONOMIC EMPOWERMENT TRANSACTION
The company's 2008 broad-based black economic empowerment (BEE1) transaction matures in December 2016. On 28 October 2016,
PPC advised that an agreement had been reached with the strategic black partner (SBP) and community service group
(CSG) participants to amend certain terms of the original transaction. Furthermore, a separate transaction has been
proposed that will see the issuance of an additional 4 403 439 PPC ordinary shares to the SBPs and CSGs. Details of the
proposed transactions are contained in the circular for the shareholders meeting scheduled for 5 December 2016.
The maturity of BEE 1 in December 2016 will see an inflow of R1 076 million into the company as the SBPs and CSGs
subscribe for shares in terms of the compulsory subscription. Work to design and implement a new BBBEE (BEE III) transaction
has progressed well and will be communicated to shareholders in the first half of the 2017 calendar year.
PROSPECTS
As the domestic cement market remains highly competitive, the immediate focus is on managing cost performance, paying
particular attention to costs within management's control and maximising efficiencies. PPC introduced price increases in
October and has seen volume losses on the back of revised pricing. While there has been a marked overall decline in
imports year-on-year , recent indications are that imports from China are on the increase.
In Zimbabwe, optimising the Harare mill will be a focus area. As our projects in the DRC and Ethiopia near
commissioning, the focus will shift from project implementation to operations and achieving maximum ramp-up without disrupting
the market.
The recent successful rights issue provides PPC with a significantly improved capital structure that will facilitate
the pursuance of its business strategy. The company will continue to optimise its capital structure to ensure the
business is cushioned against adverse changes in economic conditions.
On behalf of the board
PG Nelson
Chairman
DJ Castle
Chief executive officer
MMT Ramano
Chief financial officer
16 November 2016
Reviewed condensed consolidated statement of comprehensive income
for the six months ended 30 September 2016
Six months Six months Twelve
ended ended months ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited % Audited
Notes Rm Rm change Rm
Revenue 5 156 4 501 15 9 227
Cost of sales 3 838 3 261 18 6 437
Gross profit 1 318 1 240 6 2 790
Administrative and other operating expenditure 577 489 18 1 130
Operating profit before item listed below: 741 751 (1) 1 660
Empowerment transactions IFRS 2 charges 17 18 43
Operating profit 724 733 (1) 1 617
Foreign exchange loss/(gain) on foreign currency
monetary items 2 87 20 (22)
Finance costs 3 509 330 54 518
Investment income 6 12 28
Profit before equity accounted earnings and
exceptional adjustments 134 395 (66) 1 149
Earnings from equity accounted investments - - (16)
Impairments 4 (10) (5) (81)
Profit on sale of non-core assets 5 - 117 -
Profit before taxation 124 507 (76) 1 052
Taxation 6 66 156 (58) 391
Profit for the period 58 351 (83) 661
Attributable to:
Shareholders of PPC Ltd 102 369 (72) 698
Non-controlling interests (44) (18) (37)
Other comprehensive (loss)/income, net of taxation
Items that will be reclassified to profit or loss (310) 177 775
Cash flow hedges 45 10 38
Taxation on cash flow hedges (13) (3) (11)
Exchange (loss)/gain arising on translation of
foreign operations (342) 237 752
Reclassification of profit on sale of
available-for- sale financial asset to profit and loss - (82) -
Taxation impact on reclassification of profit on sale of
available-for-sale financial asset to profit and loss - 15 -
Revaluation of available-for-sale financial asset - - (7)
Taxation on revaluation of available-for-sale financial asset - - 3
Total comprehensive (loss)/income (252) 528 1 436
Attributable to:
Shareholders of PPC Ltd (157) 520 1 340
Non-controlling interests (95) 8 96
EARNINGS PER SHARE (CENTS)(a) 7
Basic 13 54 (76) 103
Diluted 13 53 (75) 101
(a) Following the successful rights issue by the company during September 2016, the prior reporting periods' weighted average
number of shares have been adjusted in accordance with IAS 33 Earnings per Share and accordingly the earnings per share has
been restated. For further details refer note 15.
Reviewed condensed consolidated statement of financial position
at 30 September 2016
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Notes Rm Rm Rm
ASSETS
Non-current assets 14 052 13 579 12 202
Property, plant and equipment 8 12 343 11 716 10 648
Goodwill 9 244 255 254
Other intangible assets 10 725 766 772
Equity accounted investments 11 197 200 125
Other non-current assets 12 480 590 355
Deferred taxation assets 17 63 52 48
Non-current assets held for sale 13 40 42 76
Current assets 3 094 2 768 2 979
Inventories 956 1 121 1 029
Trade and other receivables 14 1 325 1 157 1 224
Taxation receivable 165 30 8
Cash and cash equivalents 648 460 718
Total assets 17 186 16 389 15 257
EQUITY AND LIABILITIES
Capital and reserves
Stated capital 15 2 739 (1 113) (1 165)
Other reserves 1 466 1 558 1 402
Retained profit 2 678 2 583 2 406
Equity attributable to shareholders of PPC Ltd 6 883 3 028 2 643
Non-controlling interests 440 535 521
Total equity 7 323 3 563 3 164
Non-current liabilities 5 462 6 729 8 813
Provisions 16 440 408 400
Deferred taxation liabilities 17 1 128 1 178 1 059
Long-term borrowings 18 3 449 4 614 6 711
Other non-current liabilities 19 445 529 643
Current liabilities 4 401 6 097 3 280
Short-term borrowings 20 2 465 4 557 1 510
Trade and other payables and short-term provisions 21 1 901 1 522 1 658
Taxation payable 35 18 112
Total equity and liabilities 17 186 16 389 15 257
Net asset book value per share (cents) 448 573 503
Reviewed condensed consolidated statement of cash flows
for the six months ended 30 September 2016
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Notes Rm Rm Rm
Cash flow from operating activities
Operating cash flows before movements in working capital 1 145 1 137 2 416
Working capital movements 141 (324) 300
Cash generated from operations 1 286 813 2 716
Finance costs paid (513) (292) (408)
Investment income received 6 8 28
Taxation paid (196) (195) (489)
Cash available from operations 583 334 1 847
Dividends paid - (185) (559)
Net cash inflow from operating activities 583 149 1 288
Cash flow from investing activities
Acquisition of additional shares in equity accounted
investment 11 - (75) -
Acquisition of additional shares in Safika Cement (18) - (108)
Investments in property, plant and equipment (1 045) (1 188) (2 892)
Movement in other non-current assets and non-current
VAT receivables - (181) -
Proceeds on sale of equity accounted investment and
available-for-sale financial asset - 153 -
Other investing movements (4) 8 5
Net cash outflow from investing activities (1 067) (1 283) (2 995)
Cash flow from financing activities
Net borrowings (repaid)/raised before repayment of notes 18 (1 453) 1 499 1 796
Proceeds from the sale of nil paid letters by consolidated
BBBEE entities 18 137 - -
Proceeds from the issue of shares
(net of transaction costs capitalised) 3 706 - -
Purchase of shares in terms of the FSP share incentive scheme 15 (74) - (24)
Repayment of notes 18 (1 614) (650) -
Net cash inflow from financing activities 702 849 1 772
Net movement in cash and cash equivalents 218 (285) 65
Cash and cash equivalents at beginning of the period 460 718 563
Cash and cash equivalents acquired on acquisition of
3Q Mahuma Concrete 22 4 - -
Exchange rate movements on opening cash and cash equivalents (34) 27 90
Cash and cash equivalents at end of the period 648 460 718
Cash earnings per share (cents)(a) 77 49 272
Cash conversion ratio(b) 1,1 0,7 1,1
(a) Cash earnings per share is calculated using cash available from operations divided by the total weighted average number of
shares in issue for the period. Following the successful rights issue by the company during September 2016, the prior reporting
periods' weighted average number of shares have been adjusted in accordance with IAS 33 Earnings per Share and accordingly the
cash earnings per share has been restated. For further details refer note 15.
(b) Cash conversion ratio is calculated using cash generated from operations divided by EBITDA.
Reviewed condensed consolidated statement of changes in equity
for the six months ended 30 September 2016
Other reserves
Foreign Available-
currency for-sale Equity
Stated translation financial Hedging compensation
capital reserve asset reserve reserve
Rm Rm Rm Rm Rm
Balance at 30 September 2014 (audited) (1 173) 416 84 - 233
Dividends declared - - - - -
IFRS 2 charges - - - - 59
Investment by non-controlling shareholder in PPC Barnet DRC Holdings - - - - -
Put option recognised on non-controlling shareholder investment in
PPC Barnet DRC Holdings (refer note 19) - - - - -
Shares purchased in terms of FSP incentive scheme treated as
treasury shares (refer note 15) (24) - - - -
Total comprehensive income/(loss) - 618 (3) 27 -
Transactions with non-controlling interests recognised directly in equity - - - - -
Vesting of FSP incentive scheme awards 23 - - - (23)
Vesting of shares held by BBBEE 1 entities 9 - - - (9)
Balance at 30 September 2015 (audited) (1 165) 1 034 81 27 260
Dividends declared - - - - -
IFRS 2 charges - - - - 31
Issuance of shares to fund additional investment in Safika Cement
(refer note 15) 26 - - - -
Total comprehensive income/(loss) - 211 (67) 7 -
Transactions with non-controlling shareholders recognised directly in equity - - - - -
Vesting of FSP share incentive scheme awards 26 - - - (26)
Balance at 31 March 2016 (audited) (1 113) 1 245 14 34 265
IFRS 2 charges - - - - 30
Issuance of shares for the acquisition of 3Q (refer note 22) 135 - - - -
Issuance of shares in terms of rights issue, net of transaction costs
(refer note 15) 3 791 - - - -
Proceeds from the sale of nil paid letters by consolidated BBBEE entities
(refer note 18) - - - - 137
Shares purchased in terms of FSP incentive scheme treated as treasury shares
(refer note 15) (74) - - - -
Total comprehensive (loss)/income - (291) - 32 -
Transactions with non-controlling shareholders recognised directly in equity - - - - -
Balance at 30 September 2016 (reviewed) 2 739 954 14 66 432
Reviewed condensed consolidated statement of changes in equity (continued)
for the six months ended 30 September 2016
Equity
attributable to Non-
Retained shareholders controlling Total
profit of PPC Ltd interests equity
Rm Rm Rm Rm
Balance at 30 September 2014 (audited) 2 255 1 815 603 2 418
Dividends declared (540) (540) (19) (559)
IFRS 2 charges - 59 - 59
Investment by non-controlling shareholder in PPC Barnet DRC Holdings - - 256 256
Put option recognised on non-controlling shareholder investment in
PPC Barnet DRC Holdings (refer note 19) - - (422) (422)
Shares purchased in terms of FSP incentive scheme treated as
treasury shares (refer note 15) - (24) - (24)
Total comprehensive income/(loss) 698 1 340 96 1 436
Transactions with non-controlling interests recognised directly in equity (7) (7) 7 -
Vesting of FSP incentive scheme awards - - - -
Vesting of shares held by BBBEE 1 entities - - - -
Balance at 30 September 2015 (audited) 2 406 2 643 521 3 164
Dividends declared (185) (185) - (185)
IFRS 2 charges - 31 - 31
Issuance of shares to fund additional investment in Safika Cement
(refer note 15) - 26 - 26
Total comprehensive income/(loss) 369 520 8 528
Transactions with non-controlling shareholders recognised directly in equity (7) (7) 6 (1)
Vesting of FSP share incentive scheme awards - - - -
Balance at 31 March 2016 (audited) 2 583 3 028 535 3 563
IFRS 2 charges - 30 - 30
Issuance of shares for the acquisition of 3Q (refer note 22) - 135 - 135
Issuance of shares in terms of rights issue, net of transaction costs
(refer note 15) - 3 791 - 3 791
Proceeds from the sale of nil paid letters by consolidated BBBEE entities
(refer note 18) - 137 - 137
Shares purchased in terms of FSP incentive scheme treated as treasury shares
(refer note 15) - (74) - (74)
Total comprehensive (loss)/income 102 (157) (95) (252)
Transactions with non-controlling shareholders recognised directly in equity (7) (7) - (7)
Balance at 30 September 2016 (reviewed) 2 678 6 883 440 7 323
Segmental information
for the six months ended 30 September 2016
The group discloses its operating segments according to the business units which are regularly reviewed by the group executive committee
and comprise cement, lime, aggregates and readymix and other. There has been no change in reporting segments during the period under review.
Revenue is split between South Africa and the rest of Africa based on where the underlying products are anticipated to be consumed or used
by the customer.
No individual customer comprises more than 10% of group revenue.
Consolidated Cement(a)
30 September 31 March 30 September 30 September 31 March 30 September
2016 2016 2015 2016 2016 2015
Reviewed Audited Audited Reviewed Audited Audited
Rm Rm Rm Rm Rm Rm
Revenue
South Africa 3 770 3 219 6 795 2 713 2 386 4 999
Rest of Africa 1 480 1 367 2 624 1 418 1 314 2 507
5 250 4 586 9 419 4 131 3 700 7 506
Inter-segment revenue(c) (94) (85) (192)
Total revenue 5 156 4 501 9 227
Operating profit before items listed below 741 764 1 660 600 645 1 422
Empowerment transactions IFRS 2 charges 17 18 43 17 18 43
Restructuring costs - 13 - - 13 -
Operating profit 724 733 1 617 583 614 1 379
South Africa 482 522 1 120 342 404 881
Rest of Africa 242 211 497 241 210 498
Foreign exchange loss/(gain) on foreign currency
monetary items 87 20 (22) 87 20 (34)
Finance costs 509 330 518 466 282 382
Investment income 6 12 28 - 8 19
Profit before exceptional adjustments 134 395 1 149 30 320 1 050
Earnings from equity accounted investments - - (16) - - (16)
Impairments and profit on sales of non-core assets (10) 112 (81) (10) 113 (59)
Profit before taxation 124 507 1 052 20 433 975
Taxation 66 156 391 27 129 325
Profit/(loss) for the period 58 351 661 (7) 304 650
Depreciation and amortisation 405 393 702 347 340 594
EBITDA(d) 1 146 1 144 2 362 947 972 2 016
South Africa 754 793 1 706 559 624 1 364
Rest of Africa 392 351 656 388 348 652
EBITDA margin (%) 22,2 25,4 25,6 22,9 26,3 26,9
Assets
Non-current assets 14 052 13 579 12 202 12 973 12 613 11 251
South Africa 5 710 5 205 5 141 4 682 4 280 4 231
Rest of Africa 8 342 8 374 7 061 8 291 8 333 7 020
Non-current assets held for sale 40 42 76 40 42 76
Current assets 3 094 2 768 2 979 2 583 2 343 2 536
Total assets 17 186 16 389 15 257 15 596 14 998 13 863
South Africa 7 495 6 753 6 687 6 014 5 441 5 376
Rest of Africa 9 691 9 636 8 570 9 582 9 557 8 487
Liabilities
Non-current liabilities 5 462 6 729 8 813 5 265 6 536 7 492
Current liabilities 4 401 6 097 3 280 4 107 5 038 2 921
Total liabilities 9 863 12 826 12 093 9 372 11 574 10 413
South Africa 4 768 8 148 8 343 4 301 6 921 6 692
Rest of Africa 5 095 4 678 3 750 5 071 4 653 3 721
Capital commitments (refer note 23) 2 712 3 283 4 643 2 702 3 219 4 588
(a) Includes head office activities.
(b) Comprises BBBEE trusts and trust funding SPVs.
(c) All inter-segmental transactions are done at arm's length.
(d) EBITDA is defined as operating profit before empowerment transactions IFRS 2 charges, depreciation and amortisation.
Segmental information (continued)
for the six months ended 30 September 2016
Materials business
Lime Aggregates and readymix
30 September 31 March 30 September 30 September 31 March 30 September
2016 2016 2015 2016 2016 2015
Reviewed Audited Audited Reviewed Audited Audited
Rm Rm Rm Rm Rm Rm
Revenue
South Africa 395 378 853 662 455 943
Rest of Africa 11 5 18 51 48 99
406 383 871 713 503 1 042
Inter-segment revenue(c)
Total revenue
Operating profit before items listed below 74 75 133 67 44 105
Empowerment transactions IFRS 2 charges - - - - - -
Restructuring costs - - - - - -
Operating profit 74 75 133 67 44 105
South Africa 74 75 133 66 43 106
Rest of Africa - - - 1 1 (1)
Foreign exchange loss/(gain) on foreign
currency monetary items (1) - - 1 - 12
Finance costs - 2 4 7 4 29
Investment income 3 1 1 3 3 8
Profit before exceptional adjustments 78 74 130 62 43 72
Earnings from equity accounted investments - - - - - -
Impairments and profit on sales of
non-core assets - - - - (1) (22)
Profit before taxation 78 74 130 62 42 50
Taxation 21 21 35 18 6 31
Profit/(loss) for the period 57 53 95 44 36 19
Depreciation and amortisation 22 21 45 36 32 63
EBITDA(d) 96 96 178 103 76 168
South Africa 96 96 178 99 73 164
Rest of Africa - - - 4 3 4
EBITDA margin (%) 23,6 25,1 20,4 14,4 15,1 16,1
Assets
Non-current assets 314 325 310 765 641 641
South Africa 314 325 310 714 600 600
Rest of Africa - - - 51 41 41
Non-current assets held for sale - - - - - -
Current assets 161 187 185 349 237 254
Total assets 475 512 495 1 114 878 895
South Africa 475 512 495 1 005 799 812
Rest of Africa - - - 109 79 83
Liabilities
Non-current liabilities 100 103 94 97 90 89
Current liabilities 73 90 105 220 125 162
Total liabilities 173 193 199 317 215 251
South Africa 173 193 199 293 190 222
Rest of Africa - - - 24 25 29
Capital commitments (refer note 23) 2 5 28 8 59 27
(a)Includes head office activities.
(b)Comprises BBBEE trusts and trust funding SPVs.
(c)All inter-segmental transactions are done at arm's length.
(d)EBITDA is defined as operating profit before empowerment transactions IFRS 2 charges, depreciation and amortisation.
Segmental information (continued)
for the six months ended 30 September 2016
Other(b)
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
Revenue
South Africa - - -
Rest of Africa - - -
- - -
Inter-segment revenue(c)
Total revenue
Operating profit before items listed below - - -
Empowerment transactions IFRS 2 charges - - -
Restructuring costs - - -
Operating profit - - -
South Africa - - -
Rest of Africa - - -
Foreign exchange loss/(gain) on foreign currency monetary items - - -
Finance costs 36 42 103
Investment income - - -
Profit before exceptional adjustments (36) (42) (103)
Earnings from equity accounted investments - - -
Impairments and profit on sales of non-core assets - - -
Profit before taxation (36) (42) (103)
Taxation - - -
Profit/(loss) for the period (36) (42) (103)
Depreciation and amortisation - - -
EBITDA(d) - - -
South Africa - - -
Rest of Africa - - -
EBITDA margin (%)
Assets
Non-current assets - - -
South Africa - - -
Rest of Africa - - -
Non-current assets held for sale - - -
Current assets 1 1 4
Total assets 1 1 4
South Africa 1 1 4
Rest of Africa - - -
Liabilities
Non-current liabilities - - 1 138
Current liabilities 1 844 92
Total liabilities 1 844 1 230
South Africa 1 844 1 230
Rest of Africa - - -
Capital commitments (refer note 23) - - -
(a)Includes head office activities.
(b)Comprises BBBEE trusts and trust funding SPVs.
(c)All inter-segmental transactions are done at arm's length.
(d)EBITDA is defined as operating profit before empowerment transactions IFRS 2 charges, depreciation and amortisation.
NOTES TO THE REVIEWED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of preparation
The reviewed condensed consolidated interim financial statements are prepared in accordance with the provisions of the
JSE Limited Listings Requirements for interim reports, and the requirements of the Companies Act applicable to financial
statements. The Listings Requirements require interim reports to be prepared in accordance with IAS 34 Interim Financial
Reporting and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and the Financial
Pronouncements as issued by the Financial Reporting Standards Council. The accounting policies applied in the preparation
of the condensed consolidated interim financial statements were derived in terms of International Financial Reporting
Standards and are consistent with those accounting policies applied in the preparation of the previous consolidated
financial statements. These reviewed condensed consolidated financial statements do not include all the information required
for the full annual financial statements and should be read in conjunction with the consolidated annual financial statements
as at and for the six months ended 31 March 2016.
These reviewed condensed consolidated financial statements have been prepared under the supervision of MMT Ramano CA(SA),
chief financial officer, and were approved by the board of directors on 15 November 2016.
The accounting policies and methods of computation used are consistent with those used in the preparation of the financial
statements for the period ended 31 March 2016, except for the following revised accounting standards and interpretations
that became effective during the current period, and which did not have a material impact on the reported results:
- IAS 1 Presentation of Financial Statements (amendment) Disclosure Initiative
- IFRS 14 Regulatory Deferral Accounts
- IAS 16 Property, Plant and Equipment and IAS 41 Agriculture (amendments) Agriculture: Bearer Plants
- IFRS 11 Joint Arrangements (amendment) Accounting for Acquisition of Interests in Joint Operations
- IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets (amendment) Clarification of Acceptable Methods of
Depreciation and Amortisation
- IAS 28 Investment in Associates and Joint Ventures, IFRS 10 Consolidated Financial Statements and IFRS 12 Disclosure
of Interests in Other Entities (amendments) Investment Entities: Applying the Consolidation Exception
- IAS 27 Separate Financial Statements (amendment) Equity Method
- IASB improvements to IFRS 2012 to 2014.
The following revised standards are in issue but are not effective:
- IAS 7 Statement of Cash Flows: amendments as a result of the disclosure initiative
- IAS 12 Income Taxes: amendment regarding the recognition of deferred tax assets for unrealised losses
- IFRS 7 Financial Instruments: additional disclosure resulting from the introduction of the hedger chapter in IFRS 9
- IFRS 9 Financial Instruments: classification and measurement
- IFRS 15 Revenue from Contracts with Customers
- IFRS 16 Leases.
Going concern
In determining the appropriate basis of preparation of the financial statements, the directors are required to consider
whether the group can continue in operational existence for the foreseeable future.
The financial performance of the group is dependent upon the wider economic environment in which it operates. Factors exist
which are outside the control of management that can have a significant impact on the business, specifically, volatility in
the rand/US dollar exchange rate, energy prices and commodity prices, which all impact on the input costs of the business.
Despite the operational and cost containment achievements of the group the declining cement price environment and low
macro-growth environment has put the group's cash flows and profitability under pressure.
As communicated in our March 2016 results announcement, PPC embarked upon an expansion strategy in 2010 to extract value
from high-growth economies by expanding its footprint into the rest of Africa. The result of this expansion strategy will
see an increase in gross production capacity of approximately three million tonnes per annum giving the group a solid
foundation for further growth. Given the long lead time required to develop greenfield operations, the group has drawn down
on pre-arranged project finance debt without an immediate concomitant increase in earnings and resultant cash flow.
During the same period of our expansion growth on the continent, external factors beyond the group's control have seen a
slowing global economy, significant decline in oil and commodity prices which culminated in downward pressures on selling
prices in the regions in which the group operates. In addition, South Africa, which is the major contributor to earnings,
has seen intensified competition in terms of new entrants and imports into the country despite the economic slowdown,
resulting in overcapacity in the market.
The board and executive management reviewed the group's business and capital structure and developed business plans in
order to be able to effectively deal with the effects of a continuation of the current low price environment and slowing
economic growth.
Key elements of this business plan are the reduction of costs and improvements in efficiencies, through the Profit Improvement
Programme (PIP?) implemented in 2015, the curtailment of discretionary capital expenditure while preserving the ability of
the business to increase production and compete efficiently when cement prices and economies improve.
The board's review of the group's capital structure has resulted in significant steps being taken to strengthen the group's
financial position. As announced in September 2016, the rights issue was 5,8 times oversubscribed and the group raised gross
proceeds of R4 billion which were utilised to repay borrowings and will assist in funding future operational requirements.
At the end of September 2016 the group's debt to EBITDA was 2,6 times (March 2016: 3,8 times), a marked improvement from
the prior reporting periods. In December 2016 the company is expected to receive R1,1 billion as the company's
2008 BBBEE transaction matures and the strategic partners are required to subscribe for shares in the company, which will
further strengthen the capital structure of the company.
Based on the group's capital structure post the rights issue, the expectation that the existing debt facilities will be
successfully restructured, the anticipated cash inflow in terms of 2008 BBBEE transaction, its current trading position and
forecasts and facilities in place, the directors believe that the group will be able to comply with its financial covenants
and be able to meet its obligations as they fall due and accordingly have formed a judgement that it is appropriate to prepare
the financial statements on a going concern basis.
Auditor's review opinion
These condensed consolidated financial statements for the six months ended 30 September 2016 have been reviewed by
Deloitte & Touche, who expressed an unmodified review conclusion thereon. A copy of the auditor's review report on the
condensed consolidated financial statements is available for inspection at the company's registered office. The auditor's report
does not necessarily report on all of the information contained in this announcement. Shareholders are therefore advised that
in order to obtain a full understanding of the nature of the auditor's engagement, they should obtain a copy of that report.
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
2. Foreign exchange loss/(gain) on foreign currency monetary items
Gain on remeasurement of put option liabilities - (16) (14)
Loss on unlisted collective investments - - 2
Loss/(gain) on translation of foreign currency-denominated monetary
items 87 36 (10)
87 20 (22)
Included in loss/(gain) on translation of foreign currency-denominated monetary items, is a loss of R48 million
relating to the remeasurement of the non-current VAT receivable in the DRC following recent devaluations of the
Congolese franc against the US dollar and a remeasurement loss of R12 million recorded against the US dollar
denominated project funding in Rwanda.
Details on foreign exchange rates can be found in note 26.
3. Finance costs
Bank and other short-term borrowings 277 49 48
Notes 49 98 189
Long-term loans 288 229 313
614 376 550
Capitalised to plant and equipment and intangible assets (159) (119) (196)
Finance costs before BBBEE transaction and time value of money
adjustments 455 257 354
BBBEE transaction 36 41 116
Dividends on redeemable preference shares 17 19 42
Long-term borrowings 19 22 74
Time value of money adjustments on rehabilitation and decommissioning
provisions and put option liabilities 18 32 48
Finance costs 509 330 518
South Africa 427 258 488
Rest of Africa 82 72 30
Included in finance costs, as part of notes, long-term loans and BBBEE transactions are transaction and raising
costs of R141 million (March 2016: R10 million, September 2015: R3 million) that were incurred in raising
borrowings and are amortised over the respective periods of the borrowings. The liquidity and guarantee facility,
as discussed in note 18, incurred raising fees of R128 million which have been amortised to finance costs in
full. The raising fee was reduced from the original estimate of R171 million as advised in the results released
for the quarter ended 30 June 2016.
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
4. Impairments
Impairment of goodwill - - (22)
Impairment of financial asset - - (1)
Impairment of loans advanced - (1) (1)
Impairment of property, plant and equipment (10) (4) (57)
(10) (5) (81)
Impairment of goodwill
In 2015, the recoverable amount of Pronto was calculated to be lower than its carrying amount, resulting in an
impairment of R22 million. Pronto is included under aggregates and readymix in the segmental analysis.
Impairment of property, plant and equipment
- In the current period an impairment of R10 million relating to machinery at CIMERWA that will no longer be
utilised in the bagging and packing process.
- Post the group's decision to no longer pursue the Algeria expansion project, it was deemed appropriate that
the costs capitalised of R15 million be impaired in 2015.
- An impairment of R14 million relating to the old plant at CIMERWA that would not be used post-commissioning
of the new plant was recorded in the period ended September.
- Also in the 2015 financial year, R27 million relating to a limestone quarry in Zimbabwe was impaired due to
uncertainty of future prospects.
- Other minor impairments to property, plant and equipment of R4 million and R1 million were processed in
March 2016 and September 2015 respectively.
5. Profit on sale of non-core assets
Profit on disposal of investment in Afripack Ltd (refer note 11) - 34 -
Profit on disposal of investment in Ciments de Bourbon (refer note 12) - 83 -
- 117 -
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
6. Taxation
The taxation charge comprises:
Current taxation 74 74 439
Current period 74 67 451
Prior periods - (14) (12)
Capital gains taxation - 21 -
Deferred taxation (29) 61 (60)
Current period (29) 61 (41)
Prior periods - - (19)
Withholding taxation on dividends 21 21 12
66 156 391
Taxation rate reconciliation % % %
A reconciliation of the standard South African normal
taxation rate is shown below:
Profit before taxation (excluding equity accounted investments) 53,2 30,8 36,6
Prior years' taxation impact - 2,8 2,7
Profit before taxation, including prior years' taxation adjustment 53,2 33,6 39,3
Adjustment due to the inclusion of dividend income 1,2 - 0,3
Effective rate of taxation 54,4 33,6 39,6
Income taxation effect of: (26,4) (5,6) (11,6)
Disallowable charges, permanent differences and exceptional items (3,4) (1,6) (8,9)
Empowerment transactions and IFRS 2 charges not taxation deductible (3,7) (1,0) (1,1)
Finance costs on BBBEE transaction not taxation deductible (9,2) (1,8) (2,1)
Foreign taxation rate differential 2,8 0,5 1,6
Capital gains differential on profit on sale of non-core assets - 2,4 -
Profit on sale of BBBEE rights offer shares 4,0 - -
Withholding taxation on dividends (16,9) (4,1) (1,1)
South African normal taxation rate 28,0 28,0 28,0
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Cents Cents(a) Cents(a)
7. Earnings and headline earnings
Earnings per share
Basic 13 54 103
Diluted 13 53 101
Basic (normalised)(b) 36 43 114
Diluted (normalised)(b) 36 42 113
Headline earnings per share
Basic 14 41 112
Diluted 14 41 110
Basic (normalised)(b) 36 43 114
Diluted (normalised)(b) 36 42 113
Determination of headline earnings per share
Earnings per share 13 54 103
Adjusted for:
Impairments and profit on sale of non-core assets 1 (17) 12
Taxation on impairments and profit on sale of non-core assets - 4 (3)
Headline earnings per share 14 41 112
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
Headline earnings
Profit for the period 58 351 661
Impairments and profit on sale of non-core assets 10 (112) 81
Taxation on impairments and profit on sale of non-core assets (3) 24 (15)
Headline earnings 65 263 727
Attributable to:
Shareholders of PPC Ltd 94 281 759
Non-controlling interests (29) (18) (32)
Normalised earnings
Profit for the period 58 351 661
Normalisation adjustments(b) 189 (76) 82
Normalised profit for the period 247 275 743
Attributable to:
Shareholders of PPC Ltd 261 293 775
Non-controlling interests (14) (18) (32)
(a) Following the successful rights issue by the company during September 2016, the prior reporting period
weighted average number of shares have been adjusted in accordance with IAS 33 Earnings per Share and
accordingly the earnings per share has been restated. For further details refer note 15.
(b) Normalisation adjustments comprise:
Empowerment transactions IFRS 2 charges 17 18 43
Foreign exchange loss on the DRC VAT receivable 48 - -
Impairments (refer note 4) 10 4 80
Liquidity and guarantee facility raising fees and
related costs (refer note 18) 163 - -
Prior period taxation adjustments - (14) (31)
Profit on sale of non-core assets (refer note 5) - (117) -
Restructuring costs - 14 8
Taxation impact (excluding prior period taxation adjustments) (49) 19 (18)
189 (76) 82
The difference between earnings and diluted earnings per share relates to shares held under the forfeitable share
incentive scheme that have not vested.
For the weighted average number of shares used in the calculation, refer note 15.
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
8. Property, plant and equipment
Net carrying value at beginning of the period 11 716 10 648 7 223
Additions 1 305 1 122 3 269
Acquisition of subsidiary company (refer note 22) 83 - -
Depreciation (361) (348) (612)
Other movements 34 (2) (22)
Impairments (refer note 4) (10) (4) (57)
Reallocation to other intangible assets (refer note 10) - - (115)
Transfer to non-current assets held for sale (refer note 13) - - (40)
Translation differences (424) 300 1 002
Balance at end of the period 12 343 11 716 10 648
Comprising:
Freehold and leasehold land, buildings and mineral rights 737 800 778
Factory decommissioning and quarry rehabilitation assets 150 79 87
Plant, vehicles, furniture and equipment 11 455 10 836 9 780
Capitalised leased plant 1 1 3
12 343 11 716 10 648
Included in property, plant equipment is capital work in progress of R4 947 million (March 2016: R4 527 million;
September 2015: R3 258 million), relating to the DRC, Zimbabwe and Slurry SK9 expansion projects.
For details on capital commitments, refer note 23.
Assets pledged as security
Property, plant and equipment with a net carrying value of R5 773 million (March 2016: R6 853 million;
September 2015: R4 355 million) are encumbered and used as security for borrowings in the DRC, Rwanda and Zimbabwe
(refer note 18).
Included in plant, vehicles, furniture and equipment are vehicles with a carrying value of R15 million that have
been used as security for finance lease obligations of R8 million that were consolidated into the financial
statements with the acquisition of 3Q (refer note 19 and 22).
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
9. Goodwill
Balance at beginning of the period 255 254 268
Impairments (refer note 4) - - (22)
Translation differences (11) 1 8
Balance at end of the period 244 255 254
Goodwill, net of impairments, is allocated to the
following cash-generating units:
CIMERWA Limited (Cement segment) 39 50 49
Safika Cement Holdings (Pty) Ltd (Cement segment) 78 78 78
Pronto Holdings (Pty) Ltd (Aggregate and readymix segment) 127 127 127
244 255 254
In September 2015 the recoverable amount of Pronto of R758 million was calculated to be lower than its carrying
amount and resulted in an impairment of R22 million.
10. Other intangible assets
Balance at beginning of the period 766 772 681
Additions 10 12 36
Amortisation (44) (45) (90)
Transfers and other movements(a) - - 118
Translation differences (7) 27 27
Balance at end of the period 725 766 772
Comprising:
Right of use of mineral assets 194 214 191
ERP development and other software 108 140 143
Brand and trademarks 378 339 332
Customer relationships - contractual and non-contractual 45 73 106
725 766 772
(a) The split between property, plant and equipment (PPE) and intangible assets on the contribution made by a
then new shareholder into PPC Barnet DRC Holdings was finalised in 2015 and R115 million was transferred
from PPE which represented the value of the mineral reserves and mining rights.
The group does not have any indefinite life intangible assets.
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
11. Equity accounted investments
Investments at cost 200 201 126
Share of retained profit - (1) (1)
Translation differences (3) - -
Balance at end of the period 197 200 125
Comprising:
Habesha Cement Share Company (Habesha) 193 196 121
Other minor equity accounted investments 4 4 4
197 200 125
During the period ended March 2016 an additional investment of R75 million was made towards Habesha as PPC took
up its share of a rights offer made by the company. As not all shareholders followed their rights, PPC's
shareholding subsequently increased to 35% (March 2016: 35%; September 2015: 32%).
During the 2015 financial year, the board approved the sale of the investment in Afripack. During the first
quarter of the 2016 calendar year the sale became effective and the group disposed its full shareholding in
Afripack.
12. Other non-current assets
Advance payments for plant and equipment(a) 71 142 148
Derivative asset - 2 -
Investment in government bonds(b) 8 8 7
Loans advanced - - 1
Unlisted collective investment(c) 122 119 117
Unlisted investment at fair value(d) - - 82
VAT receivable(e) 279 319 -
480 590 355
(a) In terms of the construction agreements with the suppliers of the new cement plants in Rwanda, DRC and Zimbabwe,
a portion of the full contract price is required to be paid in advance of the plant construction. The advance
payments will be recycled to property, plant and equipment as the plants are constructed, and are secured by advance
payment bonds.
(b) Represents government of Zimbabwe treasury bills carried at fair value. The treasury bills were issued in
September 2015 in exchange for funds previously expropriated by the government in 2007. The treasury bills have a
face value of USD706 831 (R8 million), repayable in three equal annual instalments from June 2017 to June 2019.
A discount rate of 12% was applied in determining the fair value on initial recognition. Interest is paid bi-annually
at a rate of 5% per annum. Due to current liquidity constraints in Zimbabwe and uncertainty around receipt of the
instalments, the full value has been recognised as non-current.
(c) Comprises an investment by the PPC Environmental Trust in local unit trusts. These investments are held to fund PPC's
South African environmental obligations.
(d) During the period ended 31 March 2016, PPC disposed of its 6,75% shareholding in Ciments de Bourbon.
(e) The group has incurred VAT during the construction of the plant in the DRC and the amount receivable was classified
as non-current effective from the period ended March 2016 in contrast to the 2015 reporting period where the full
amount was classified as current. The change follows communication from the local revenue authorities around the
delay in refund of VAT receivables. Following the recent decline in the Congolese franc against the US dollar, the
reporting currency of PPC Barnet DRC, a loss of R48 million has been recorded under foreign exchange (loss)/gain on
foreign currency monetary items in the current reporting period.
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
13. Non-current assets held for sale
Equity accounted investment(a) - - 36
Property, plant and equipment(b) 40 42 40
40 42 76
(a) During the period ended March 2016, the company finalised the sale of its 25% stake in Afripack for R70 million.
In 2015, the carrying amount immediately before classification as held for sale was R36 million which was lower
than its fair value less costs to sell of R70 million (which represented the estimated selling price per the
sales agreement less estimated transaction costs). Afripack was included under the cement segment in segmental
analysis.
(b) In September 2015, the PPC Zimbabwe board approved the disposal of houses at its Colleen Bawn and Bulawayo
factories which was anticipated to be finalised in 12 months. The disposal, initially planned for June 2016, is
now planned to be finalised by March 2017. No impairment loss was recognised on the initial reclassification as
management concluded that the fair value (estimated based on market prices of similar properties) less costs to
sell was higher than the carrying amount. The conclusion by management that no impairment loss should be
recognised is still appropriate during the current reporting period. PPC Zimbabwe is included under the cement
segment in the segmental analysis.
14. Trade and other receivables
Trade receivables 1 083 982 931
Impairment of trade receivables (77) (77) (70)
Net trade receivables 1 006 905 861
Loan relating to non-current asset held for sale - Afripack
(refer to note 11 and 13) - - 46
Mark to market cash flow hedge 3 48 38
Mark to market fair value hedge 14 28 13
Other financial receivables 82 111 50
Proceeds receivable from the rights issue on the Zimbabwe Stock
Exchange 85 - -
Trade and other financial receivables 1 190 1 092 1 008
Prepayments 134 65 75
VAT receivable 1 - 141
1 325 1 157 1 224
Shares Shares Shares
(000) (000) (000)
15. Stated capital
Number of shares and weighted average number of shares
Number of shares
Total shares in issue at beginning of the period 607 181 605 380 605 380
Shares issued for the acquisition of 3Q (refer note 22) 17 566 - -
Shares issued in terms of the rights issue(a) 1 000 000 - -
Shares issued to non-controlling shareholders in Safika Cement on
exercise of put option(b) - 1 801 -
Total shares in issue at the end of the period before adjustments
for shares deemed to be treasury shares 1 624 747 607 181 605 380
Adjustments for shares deemed to be treasury shares:
Shares held by consolidated participants of the second BBBEE
transaction(c) (37 382) (37 382) (37 382)
Shares held by consolidated BBBEE trusts and trust funding SPVs(d) (34 477) (34 477) (34 477)
Shares held by consolidated Porthold Trust (Private) Limited(e) (1 285) (1 285) (1 285)
Shares purchased in terms of the FSP share incentive scheme(f) (14 013) (5 563) (6 343)
Total shares in issue at end of the period (net of shares deemed
to treasury shares) 1 537 590 528 474 525 893
Weighted average number of shares, used for:(a)
Earnings and headline earnings per share 757 943 680 086 680 016
Dilutive earnings and headline earnings per share 764 565 690 377 688 049
Cash earnings per share 757 943 680 086 680 016
Shares are weighted for the period in which they are entitled to participate in the profits of the group.
Rm Rm Rm
Balance at beginning of the period (1 113) (1 165) (1 173)
Shares issued for the acquisition of 3Q (refer note 22) 135 - -
Issuance of shares from the offer (net of direct transaction
costs)(a) 3 791 - -
Shares issued to non-controlling shareholders in Safika Cement
on exercise of put option(b) - 26 -
Shares purchased in terms of the FSP share incentive scheme(f) (74) - (24)
Vesting of shares held by BBBEE 1 entities(d) - - 9
Vesting of shares held in terms of the FSP share incentive scheme(e) - 26 23
Balance at end of the period 2 739 (1 113) (1 165)
(a) During September 2016 PPC concluded an oversubscribed rights issue. The weighted average number of shares
used for calculating earnings and headline earnings per share, dilutive earnings and headline earnings per
share and cash earnings per share for the prior reporting periods have been restated as a result of the
rights issue and have been adjusted by a factor of 1,3 in accordance with guidance provided in IAS 33
Earnings per Share. For the current reporting period, the opening weighted average number of shares and share
movements that occurred prior to the rights issue have also been adjusted by the factor of 1,3, while the
share movements post the rights issue have not been adjusted by the factor.
(b) At the AGM held on 25 January 2016, shareholders approved the early settlement of the remaining put option
held by management of Safika Cement Holdings Pty Ltd for R44 million, to be settled via cash of R18 million
and the issue of new PPC shares of R26 million. The shares were issued in March 2016, while the cash portion
was settled during the current reporting period.
(c) Shares issued in terms of the second BBBEE transaction which was facilitated by means of a notional vendor
funding (NVF) mechanism, with the transaction period concluding on 30 September 2019. These shares participate
in 20% of the dividends declared by PPC during the NVF period. With the exception of the Bafati Investment
Trust, entities participating in this transaction are consolidated into the PPC group in terms of IFRS 10
Consolidated Financial Statements, during the transaction term.
(d) In terms of IFRS 10, certain BBBEE trusts and trust funding SPVs from PPC's first BBBEE transaction are
consolidated, and as a result, shares owned by these entities are carried as treasury shares on consolidation.
During the period nil shares (March 2016: nil; September 2015: 287 361) vested to beneficiaries.
(e) Shares owned by a Zimbabwean employee trust company treated as treasury shares.
(f) In terms of the forfeitable share incentive scheme (FSP), 14 013 429 (March 2016: 5 563 488;
September 2015: 6 342 640) shares are held in total for participants of this long-term incentive scheme.
The shares are treated as treasury shares during the various vesting periods of the awards. During the period
nil (March 2016: 779 152; September 2015: 728 200) shares vested and are therefore no longer treated as
treasury shares.
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
16. Long-term provisions
Balance at beginning of the period 408 400 374
Amounts added 36 13 3
Amounts reversed/utilised - (30) (12)
Other movements (11) - (6)
Time value of money adjustments 9 21 29
Transfer to short-term provision - (2) -
Translation differences (2) 6 12
Balance at end of the period 440 408 400
To be incurred:
Between two and five years 26 39 20
More than five years 414 369 380
440 408 400
Comprises:
Factory decommissioning and quarry rehabilitation 409 374 361
Post-retirement healthcare benefits 31 34 39
440 408 400
17. Deferred taxation
Net liability at end of the period 1 065 1 126 1 011
Deferred taxation asset 63 52 48
Deferred taxation liability 1 128 1 178 1 059
Analysis of deferred taxation
Property, plant and equipment 1 309 1 490 1 019
Other non-current assets 182 164 187
Current assets (6) (2) 3
Non-current liabilities (70) (89) (89)
Current liabilities (48) (38) (74)
Reserves 53 (37) 9
Taxation losses (355) (362) (44)
1 065 1 126 1 011
Included in the net deferred taxation balance is a deferred taxation asset of R355 million (March 2016: R362 million,
September 2015: R44 million) relating to CIMERWA's taxation losses. In terms of local legislation, taxation losses
need to be utilised within five years from the initial year of assessment. At period end and based on the approved
business plans, the company considered it probable that these taxation losses will be offset against future taxable
profits. The utilisation of the taxation loss is highly dependent on economic growth in the region and performance
of the business.
18. Long-term borrowings
Terms
Notes(a) Various, refer below
Long-term loan Interest is payable bi-annually with a bullet capital
repayment in December 2016
Long-term loan(b) Interest is payable quarterly with a bullet capital
repayment in September 2017
Long-term loan Interest is payable monthly with a bullet capital repayable
18 months after notice period
Project funding
US dollar denominated US dollar denominated, repayable in monthly instalments over
a 10-year period, starting March 2016
Rwandan franc denominated Rwanda franc denominated, repayable in monthly instalments over
a 10-year period, starting March 2016
US dollar denominated US dollar denominated, interest payable
bi-annually. First capital repayment in December 2016; thereafter
bi-annual repayments in equal instalments over five years
US dollar denominated US dollar denominated, capital and interest payable bi-annually
starting July 2017 ending January 2025
Long-term borrowings before BBBEE transaction
BBBEE transaction(c)
Preference shares Dividends are payable bi-annually, with annual redemptions
ending December 2016
Preference shares Dividends are payable bi-annually with capital redeemable from
surplus funds. Compulsory annual redemptions until December 2016
Preference shares Capital and dividends repayable by December 2016, with capital
capped at R400 million
Long-term borrowings Capital and interest repayable by December 2016, with capital
capped at R700 million
Long-term borrowings
Less: Short-term portion of long-term borrowings
18. Long-term borrowings (continued)
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
Security Interest rate
Notes(a) Unsecured Various, refer below 136 1 747 2 398
Long-term loan Unsecured Fixed 10,86% 1 041 1 417 1 520
Long-term loan(b) Unsecured Variable rates at 575 511 555 -
basis points above JIBAR
Long-term loan Unsecured Variable rates at 125 50 900 -
basis points above JIBAR
Project funding 3 660 3 372 2 357
US dollar denominated Secured by CIMERWA's Variable at 725 basis points 698 806 641
property, plant and above six-month US dollar LIBOR
equipment (refer note 8)
Rwandan franc denominated Secured by CIMERWA's Fixed rate of 16% 490 474 357
property, plant and
equipment (refer note 8)
US dollar denominated Secured by PPC Six-month US dollar LIBOR 599 550 421
Zimbabwe's property, plus 700 basis points
plant and equipment
(refer note 8)
US dollar denominated Secured by PPC Barnet Six-month US dollar LIBOR 1 873 1 542 938
DRC's property, plant plus 725 basis points
and equipment (refer
note 8)
Long-term borrowings before BBBEE transaction 5 398 7 991 6 275
BBBEE transaction(c)
- 844 1 227
Preference shares Secured by guarantee Variable rates at 81,4% of - 33 64
from PPC Ltd prime and fixed rates of
9,24% to 9,37%
Preference shares Secured by PPC shares Variable rates at 86,9% of prime - 16 72
held by the SPVs
Preference shares Secured by guarantee Variable rates at 78% of prime - 393 395
from PPC Ltd
Long-term borrowings Secured by guarantee Variable rates at 285 basis - 402 696
from PPC Ltd points above JIBAR
Long-term borrowings 5 398 8 835 7 502
Less: Short-term portion (1 949) (4 221) (791)
of long-term borrowings
3 449 4 614 6 711
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
Maturity analysis of long-term borrowing obligations:
One year 1 949 4 221 791
Two years 355 1 777 2 877
Three years 392 394 303
Four years 497 393 1 056
Five and more years 2 205 2 050 2 475
5 398 8 835 7 502
(a) Notes
Comprise unsecured notes, issued under the company's R6 billion domestic medium-term note programme, and are recognised
net of capitalised transaction costs:
Note number, term and interest rate Issue date
PPC 001: three years; three-month JIBAR plus 1,26% March 2013 - - 650
PPC 002: five years; three-month JIBAR plus 1,5% December 2013 20 750 750
PPC 003: five years; three-month JIBAR plus 1,48% July 2014 116 750 750
PPC 004: seven years; 9,86% July 2014 - 250 250
136 1 750 2 400
Less: Transaction costs capitalised - (3) (2)
136 1 747 2 398
Less: Short-term portion - (1 747) (650)
136 - 1 748
During the period, the liquidity and guarantee facility was concluded and the facility was utilised to settle
outstanding notes where noteholders had requested early settlement and R1 611 million was settled on 15 July 2016.
The liquidity and guarantee facility incurred interest at JIBAR plus 10% and was repaid with the proceeds from the
rights issue in September 2016. Raising and transaction fees incurred in securing the facility, originally advised
of R171 million and later reduced to R128 million, have been amortised in full to finance costs.
(b) In the six months period ended March 2016 the company secured funding of R2 billion expiring September 2017.
The funding was partly used to settle the first note repayment of R650 million. The loan is reflected net of
transaction costs of R23 million (March 2016: R35 million, September 2015: Rnil) which are being amortised
over the 18-month period of the loan.
(c) The funding relating to the BBBEE transaction was settled during the period with the proceeds from the sale
of the nil paid letters by the respective BBBEE entities and proceeds from rights issue.
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
19. Other non-current liabilities
Cash-settled share-based payment liability 3 3 5
Finance lease liabilities(a) 8 - -
Liability to non-controlling shareholders in wholly owned subsidiary(b) 17 17 17
Put option liabilities 424 415 464
Retentions held for plant and equipment(c) - 97 204
452 532 690
Less: Short-term portion of other non-current liabilities (7) (3) (47)
445 529 643
(a) Finance lease obligations acquired via the acquisition of 3Q and are secured by vehicles (refer note 6).
The short-term portion of the finance lease obligations of R4 million, has been reclassified to current
liabilities. The remainder of the finance lease liability will be settled within five years.
(b) Relates to interest payable on the initial equity contributions into the DRC group of companies by a
non-controlling shareholder. The accruing of interest ceased in September 2015 and the amount payable
will be repaid once the external funding has been settled.
(c) Retentions held for the construction of the various cement plants. These retentions will be paid over
to the contractors once the plant achieves guaranteed performance targets. As the plants are anticipated
to be commissioned during the next 12 months, the retention payments have been reclassified to current
liabilities.
Put option liabilities
PPC Barnet DRC
The International Finance Corporation (IFC) was issued a put option in September 2015 in terms of which PPC
is required to purchase all or part of the shares held by the IFC in PPC Barnet DRC Holdings. The put option
may be exercised after six years from when the IFC subscribed (being September 2015) for the shares but only
for a five-year period. The put option value is based on the company's forecast EBITDA applying a forward
multiple less net debt. Forecasted EBITDA is based on financial forecasts approved by management, with pricing
and margins similar to those currently being achieved by the business unit while selling prices and costs are
forecast to increase at local inflation projections and extrapolated using local GDP growth rates ranging
between 5% and 9% taking cognisance of the plant production ramp-up and adjusted for the impact of competitor
activity. The forward multiple was determined using comparison of publicly available information of other cement
businesses operating in similar territories. The present value of the put option was calculated at R424 million
(March 2016: R415 million, September 2015: R422 million).
Safika Cement
With the purchase of the initial equity stake in Safika Cement, PPC granted non-controlling shareholders individual
put options, with different exercise dates, for the sale of their remaining shares in the company to PPC. As at
September 2016 all the put options had been exercised. Following the exercise of the put options, PPC now holds 95%
of the equity in Safika Cement, the balance owned by management through a NVF mechanism.
At September 2015, the remaining put option was anticipated to be exercised in the short term at an anticipated
value of R42 million. The put option liabilities were calculated using the company's forecast EBITDA applying an
earnings multiple dependent on the level of EBITDA achieved less net debt.
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
20. Short-term borrowings
Short-term loans and bank overdrafts 516 336 719
Short-term portion of long-term borrowings (refer note 18) 1 949 4 221 791
2 465 4 557 1 510
21. Trade and other payables and short-term provisions
Accrued finance costs 31 54 49
Cash-settled share-based payment liability
(short-term portion) (refer note 19) 3 3 5
Capital expenditure payables 262 229 147
Derivative financial instruments - 1 1
Finance lease liabilities acquired through the
acquisition of 3Q (refer note 19 and 22) 4 - -
Other financial payables 11 89 113
Put option liability (refer note 19) - - 42
Retentions held for plant and equipment 330 67 116
Trade payables and accruals 987 940 875
Trade and other financial payables 1 628 1 383 1 348
Payroll accruals 273 139 310
1 901 1 522 1 658
22. Acquisition of subsidiary company
3Q Mahuma Concrete
On 1 July 2016, all the transaction terms to acquire 100% of 3Q Mahuma Concrete Pty Ltd (3Q) were achieved and 3Q became a
wholly owned group subsidiary. The acquisition was settled via the issuance of 17 565 872 new PPC shares. The fair value
of the shares for asset acquisition, using the ruling share price of R7,68 on the effective date of the transaction,
amounted to R135 million.
The commercial rationale for the transaction is to progress the company's channel management strategy that serves as a
complementary platform for cement growth in South Africa. PPC's strategic intention is to be a provider of materials and
solutions into the basic services sector. Cementitious distribution channels, including readymix, is increasingly being
utilised as conduit to grow and sustain cement sales volumes. The acquisition provides PPC with a further complementary
platform to grow its service offering in this market segment. The South African market is evolving towards a concrete
delivery model, which requires complementary building materials including cement, aggregates and readymix. Controlling
cement distribution channels is vital, with customers and end users requiring integrated solutions.
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
The company is in the process of finalising the fair
value of the assets and liabilities as at the
acquisition date. Provisional fair values of
assets and liabilities is reflected below:
Non-current assets 113
Current assets, excluding cash and cash equivalents 104
Cash and cash equivalents 4
Non-current liabilities (9)
Current liabilities (77)
Net fair value of assets and liabilities acquired 135
Purchase consideration settled via the issue of new PPC shares 135
-
3Q contributed R80 million to revenue and R8 million to EBITDA. On an earnings and headline earnings per share basis,
3Q contributed R0,20 for the three months it has been consolidated into the group.
23. Commitments
Contracted capital commitments 1 411 2 289 3 594
Approved capital commitments 1 301 994 1 049
Capital commitments 2 712 3 283 4 643
Operating lease commitments 115 124 171
2 827 3 407 4 814
Capital commitments
South Africa 1 155 1 649 2 409
Rest of Africa 1 557 1 634 2 234
2 712 3 283 4 643
Capital commitments are anticipated to be incurred:
- within one year 1 871 2 731 2 758
- between one and two years 841 543 1 518
- greater than two years - 9 367
2 712 3 283 4 643
Project funding has been secured for the DRC and Zimbabwe projects, amounting to US$168 million and US$75 million
respectively. In addition, the IFC subscribed for equity in the DRC project in September 2015 and now holds 10% equity
in the project. The one million tons per annum plant in the DRC is expected to be commissioned during PPC's 2017 financial
year, while the 700 000 tons per annum mill in Zimbabwe is on track to be commissioned at the end of 2016 calendar year.
The one million tons per annum kiln expansion at Slurry is planned to be commissioned during the 2018 financial year.
24. Fair values of financial assets and liabilities
The financial assets and liabilities carried at fair value are classified
into three categories as reflected below:
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Note Level* Rm Rm Rm
Financial assets
Available-for-sale
Unlisted investments at fair value 12 2 - - 82
Loans and receivables
Investment in government bonds 12 2 8 8 7
Derivative asset 12 1 - 2 -
Loans advanced 12 2 - - 1
Loans related to non-currents
assets held for sale 14 2 - 46
Mark to market hedges 12/14 1 17 76 51
Trade and other financial receivables 14 2 1 173 1 001 911
Cash and cash equivalents 1 648 460 718
At fair value through profit and loss
Unlisted collective investments at
fair value (held for trading) 12 1 122 119 117
Total financial assets 1 968 1 666 1 933
Level 1 787 657 886
Level 2 1 181 1 009 1 047
Financial liabilities
At amortised cost
Long-term borrowings 18 2 3 449 4 614 6 727
Short-term borrowings 20 1/2 2 465 4 556 1 510
Trade and other financial payables 21 2 1 625 1 476 1 504
Derivatives
Derivative instruments - current
(cash flow hedge) 21 2 - 1 1
Total financial liabilities 7 966 11 065 10 211
Level 1 785 2 086 3 906
Level 2 6 757 8 564 5 841
Level 3 424 415 464
Methods and assumptions used by the group in determining fair values:
*Level 1 - financial assets and liabilities that are valued accordingly to unadjusted market prices for similar assets
and liabilities. Market prices in this instance are readily available and the price represents regularly
occurring transactions which have been concluded on an arm's length transaction.
*Level 2 - financial assets and liabilities are valued using observable inputs, other than the market prices noted in
the level 1 methodology, and make reference to pricing of similar assets and liabilities in an active market
or by utilising observable prices and market-related data.
*Level 3 - financial assets and liabilities that are valued using unobservable data, and requires management judgement
in determining the fair value. Refer note 16 for quantitative information and significant assumptions on the
unobservable inputs used to determine fair value liabilities.
The estimated fair value of financial instruments is determined, at discrete points in time, by reference to the mid
price in an active market wherever possible. Where no such active market exists for the particular asset or liability,
the group uses valuation techniques to arrive at fair value, including the use of prices obtained in recent arm's length
transactions, discounted cash flow analysis and other valuation techniques commonly used by market participants.
The fair value of the unlisted investment was valued using the agreed valuation included in the sale agreement.
Further details are disclosed in note 12.
The fair value of loans receivable and payable is based on the market rates of the loan and the recoverability.
The fair value of cash and cash equivalents, trade and other financial receivables and trade and other financial payables
approximate their respective carrying amounts of these financial instruments because of the short period to maturity.
Put option liabilities have been calculated using EBITDA forecasts prepared by management and discounted to present value.
Further details are disclosed in note 19.
The fair value of derivative financial instruments relating to cash-settled share appreciation rights is determined with
reference to valuation performed by third-party financial institutions at reporting date, using an actuarial
binomial pricing model.
Level 3 sensitivity analysis
Financial instrument Increase/ Carrying
Valuation Main decrease value
technique assumptions (Rm) (Rm)
Put option liability Earnings EBITDA and
multiple net debt 74 424
If the EBITDA multiple applied in the valuation was one multiple higher/lower while all other variables were held constant,
carrying amount of the PPC Barnet DRC put option liabilities would decrease/increase by R74 million.
Six months Six months Twelve months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
Reviewed Audited Audited
Rm Rm Rm
Movements in level 3 financial instruments
Financial assets
Balance at beginning and end of the period - - 95
Remeasurements - - (13)
Transfer to level 2 - - (82)
Balance at end of the period - - -
Following the sale of the group's investment
in Ciments de Bourbon in January 2016, the group
does not have any level 3 financial assets.
Financial liabilities
Balance at beginning of the period 415 464 145
Exercised during the period - (42) (108)
Put options issued - - 422
Remeasurements (included under fair value
adjustments on financial instruments) - (16) (14)
Time value of money adjustments 9 9 19
Balance at end of the period 424 415 464
Remeasurements are recorded in fair value adjustments on financial instruments in the income statement.
25. Events after the reporting date
There are no events that occurred after the reporting date that may have a material impact on the group's reported
consolidated financial position at 30 September 2016.
The company advised on the JSE SENS on 28 October 2016 that it is proposing to make amendments to a component of its
2008 BBBEE transaction and also granting additional shares to the strategic black partners and community service groups,
both participants of the original transaction. The circular to shareholders, which is available on the company's website,
was posted on 4 November 2016 and provides further details of the transaction and includes pro forma financial effects
of the proposed transactions. The transaction does not have any impact on the reported results as at 30 September 2016.
26. Currency conversion guide
Approximate value of foreign currencies to the rand:
Botswana pula 1,28 1,36 1,32
Rwanda franc 0,02 0,02 0,02
US dollar 13,90 14,71 13,82
Approximate value of foreign currencies to the US dollar:
Congolese franc 979,00 928,00 924,00
Rwanda franc 746,50 746,00 711,50
ADMINISTRATION
Directors
Executive: DJ Castle (chief executive officer), MMT Ramano (chief financial officer)
Non-executive: PG Nelson (chairman), S Dakile-Hlongwane, N Goldin, TJ Leaf-Wright,
T Mboweni, SK Mhlarhi, T Moyo*, CH Naude, TDA Ross
*Zimbabwean
Registered office
148 Katherine Street, Sandton, South Africa
(PO Box 787416, Sandton 2146, South Africa)
Transfer secretaries
Computershare Investor Services (Pty) Ltd
Ground Floor, 70 Marshall Street, Marshalltown South Africa
(PO Box 61051, Marshalltown, 2107, South Africa)
Transfer secretaries Zimbabwe
Corpserve (Private) Ltd
4th Floor, Intermarket Centre, Corner 1st Street/Kwame Nkrumah Avenue, Harare Zimbabwe
(PO Box 2208, Harare, Zimbabwe)
Company secretary
JHDLR Snyman
148 Katherine Street, Sandton, South Africa
(PO Box 787416, Sandton 2146, South Africa)
Sponsor
Merrill Lynch South Africa (Pty) Ltd
The Place, 1 Sandton Drive, Sandton, South Africa
(PO Box 651987, Benmore 2010, South Africa)
External auditors
Deloitte & Touche
Deloitte Place, Building 1, The Woodlands
20 Woodlands Drive, Woodmead, 2052, South Africa
(Private Bag X6, Gallo Manor 2052, South Africa)
Disclaimer
This document including, without limitation, those statements concerning the demand outlook, PPC's expansion projects
and its capital resources and expenditure, contain certain forward-looking views. By their nature, forward-looking
statements involve risk and uncertainty and although PPC believes that the expectations reflected in such forward-looking
statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly,
results could differ materially from those set out in the forward-looking statements as a result of, among other factors,
changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory
environment and other government action and business and operational risk management. While PPC takes reasonable care to
ensure the accuracy of the information presented, PPC accepts no responsibility for any consequential, indirect, special
or incidental damages, whether foreseeable or unforeseeable, based on claims arising out of misrepresentation or
negligence arising in connection with a forward-looking statement. This document is not intended to contain any profit forecasts
or profit estimates. The historical information published in this report has been audited.
www.ppc.co.za
Date: 16/11/2016 07:05:00 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.
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