Trading Statement PPC Ltd (Incorporated in the Republic of South Africa) (Company registration number: 1892/000667/06) ISIN: ZAE 000170049 JSE / ZSE Code: PPC ("PPC" or the "Company") TRADING STATEMENT In terms of the Listing Requirements of the JSE Limited, companies are required to publish a Trading Statement as soon as they become reasonably certain that the financial results for the period to be reported on next will differ by more than 20% from those of the previous corresponding period. PPC is finalising its results for the financial year ended 31 March 2017. It should be noted that as the comparable period results related to a six month period following the change in the Company’s financial year from September to March, for ease of comparison, pro forma financial information reflecting the calculation of the twelve month financial information to March 2016 was released on SENS on 9 March 2017. The results for the financial year ended 31 March 2017 are accordingly compared to the pro forma financial results for the twelve months ended 31 March 2016. Group EBITDA is projected to contract by 10 - 15%, whilst net profit attributable to PPC shareholders is expected to decline by 85 - 95%. Basic earnings and headline earnings per share for the year ended 31 March 2017 are expected to be between 85% and 95% lower (between 18 cents and 6 cents; and between 16 cents and 5 cents respectively) compared to 117 cents and 107 cents for the 12 months ended 31 March 2016, adjusting for the weighted average number of shares. On a normalised basis and taking cognizance of the increased weighted average number of shares following the rights issue and conclusion of part of the BEE1 transaction, earnings and headline earnings per share are expected be between 25% and 35% (between 50 cents and 43 cents per share) below the comparable pro forma reporting period. Weighted average number of shares used for this calculation is 1,14 billion. Summary of expected earnings: Earnings in cents Year ended Pro forma 12 % change months to March March 2017 2016 Basic EPS 18 - 6 117 (85% - 95%) Basic HEPS 16 - 5 107 (85% - 95%) Normalised* EPS 50 - 43 66** (25% - 35%) Normalised*** HEPS 50 - 43 66** (25% - 35%) WANS*** (millions) 1,137 680 68% * Normalised earnings adjusts the reported earnings for the effects of empowerment transaction IFRS 2 charges, restructuring costs, foreign exchange movements on DRC VAT receivable and impairments and other exceptional items, net of taxation and prior year taxation adjustments ** Aligned to the number of shares used in the March 2017 EPS and HEPS calculations *** Weighted average number of shares The key contributors to the decline in profitability relate to: i) Higher financing costs as a result of raising fees and related interest charges for the R2 billion liquidity and guarantee facility raised in June 2016 to facilitate repayment of PPC’s bonds; ii) A weaker trading environment in the South African and Botswana businesses, coupled with a stronger rand dollar exchange rate negatively impacting Zimbabwe’s contribution in rand terms; iii) Additional IFRS 2 charges have been recognised in the current reporting period. This follows shareholder approval to amend terms relating to specific participants of the Company’s first BEE transaction and the recapitalisation of certain of the BEE1 entities; iv) The devaluation of certain local currencies, in particular in the DRC and Rwanda, has led to revaluation losses; and v) The once-off nature of the exceptional profit made last year on the sale of non-core assets has also contributed to the period-on-period decline in net profit and basic earnings per share. The information in this trading statement has not been reviewed or reported on by the Company’s external auditors. PPC will release its final results for the year ended 31 March 2017 on 7 June 2017. 1 June 2017 Sponsor Merrill Lynch South Africa (Pty) Limited Date: 01/06/2017 05:25:00 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.