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2025
2025/03/27
PPC’s Board of Directors Approves Construction of New Integrated Cement Plant in the Western Cape
View ArticlePPC’s Board of Directors Approves Construction of New Integrated Cement Plant in the Western Cape
PPC’s Board of Directors Approves Construction of New Integrated Cement Plant in the Western Cape
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC")
PPC's board of directors approves construction of new R3 billion best-in-class integrated cement plant
in the Western Cape
Shareholders are referred to the press release published on SENS on 16 January 2025, in which it was
announced that, subject to satisfactory feasibility studies and the approval by PPC's board of directors
("board"), PPC would embark on the construction of a new state-of-the-art integrated cement plant, which
would commence in the second quarter of 2025 and would be commissioned by the end of calendar year
2026.
Shareholders are advised that the board, having considered PPC's capital allocation criteria and its current
two times net debt to EBITDA covenant, has now approved the capital expenditure of R3 billion for the
build of the new plant. The plant, with a capacity of 1,5 million tons of cement per annum, will replace
and increase existing capacity and will be constructed at an existing PPC site in the Western Cape, which
has all the necessary permits in place. PPC's existing plants in the Western Cape will continue to operate
during the construction and commissioning of the new plant.
The board has also approved that PPC enter into an engineer, procure and construct ("EPC") contract with
Sinoma Overseas Development Company Ltd ("Sinoma"), the leading cement equipment and engineering
company in the world, in respect of the construction of the plant. As anticipated, Sinoma will commence
its work under the EPC contract in the second quarter of calendar year 2025.
PPC will be presenting its capital markets day presentation on an investor call today at 09h00 (SA time)
via a webcast including a live question and answer session. The investor call can be accessed at the
following link: https://www.corpcam.com/PPC27032025
Dunkeld
27 March 2025
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 27-03-2025 07:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC")
PPC's board of directors approves construction of new R3 billion best-in-class integrated cement plant
in the Western Cape
Shareholders are referred to the press release published on SENS on 16 January 2025, in which it was
announced that, subject to satisfactory feasibility studies and the approval by PPC's board of directors
("board"), PPC would embark on the construction of a new state-of-the-art integrated cement plant, which
would commence in the second quarter of 2025 and would be commissioned by the end of calendar year
2026.
Shareholders are advised that the board, having considered PPC's capital allocation criteria and its current
two times net debt to EBITDA covenant, has now approved the capital expenditure of R3 billion for the
build of the new plant. The plant, with a capacity of 1,5 million tons of cement per annum, will replace
and increase existing capacity and will be constructed at an existing PPC site in the Western Cape, which
has all the necessary permits in place. PPC's existing plants in the Western Cape will continue to operate
during the construction and commissioning of the new plant.
The board has also approved that PPC enter into an engineer, procure and construct ("EPC") contract with
Sinoma Overseas Development Company Ltd ("Sinoma"), the leading cement equipment and engineering
company in the world, in respect of the construction of the plant. As anticipated, Sinoma will commence
its work under the EPC contract in the second quarter of calendar year 2025.
PPC will be presenting its capital markets day presentation on an investor call today at 09h00 (SA time)
via a webcast including a live question and answer session. The investor call can be accessed at the
following link: https://www.corpcam.com/PPC27032025
Dunkeld
27 March 2025
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 27-03-2025 07:30:00
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.
Operation Update for the Ten Months Ended 31 January 2025
Operation Update for the Ten Months Ended 31 January 2025
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the group")
OPERATIONAL UPDATE FOR THE TEN MONTHS ENDED 31 JANUARY 2025
STRATEGIC UPDATE
Following the appointment of Matias Cardarelli as CEO and changes to the executive leadership team
just over a year ago, PPC embarked on a transformative journey to reposition the group for sustainable
profitability and long-term growth.
The Awaken the Giant turnaround plan was developed to execute on the opportunities identified to
improve the performance of the group while scoping strategic opportunities. The first key steps
implemented, included key strategic personnel changes, the simplification of the previously complex
organisational structure, and the realignment of the organisational culture to ensure the appropriate
results orientated focus, cost discipline and a sense of urgency.
Results of the turnaround plan were evident in PPC's half-year performance reported on 18 November
2024 and have continued into the second half of the financial year as the plan gains momentum. In
the key areas of commercial, operations and supply chain, the initiatives under implementation are
already showing results, namely plant sourcing optimisation, sales product mix enhancement,
improved thermal energy costs and logistics management. These result in the EBITDA margin and
cashflow generation increase.
For ease of comparison, all the numbers in this operational update exclude CIMERWA, as CIMERWA's
results in the prior financial year, to the date of deconsolidation, were shown as discontinued
operations.
GROUP PERFORMANCE
The key performance metric improvements for the group are depicted below.
FY25 vs FY24 10 mnths
Jan '25 1
Revenue -3%
EBITDA 20%
EBITDA margin +3,2 pp
1
Changes compared to 10 months ended January 2024 ("the comparable period")
The decrease in group revenue for the 10 months ended 31 January 2025 ("the current period") was
driven mainly by a decline in the revenue in PPC's Zimbabwe operations while the South Africa &
Botswana group delivered a flat performance.
Group EBITDA margins improved to 16.6% in the current period from 13.4% in the comparable period.
This resulted in a 20% increase in total group EBITDA. The increase in both absolute EBITDA and
EBITDA margins is due to all business units improving their results mainly as a consequence of the
turnaround plan.
Capital expenditure for the group is expected to come in slightly below the guidance of R400 – R450
million for the full financial year. Some optimisation capital expenditure is being re-assessed while
maintenance expenditure was as planned.
As the stringent focus on costs and working capital take effect, the South Africa & Botswana group's
free cashflow, being net cash inflow before financing activities excluding dividends from Zimbabwe,
increased by a substantial 90% to R692 million in the current period from R364 million in the
comparable period. As at 31 January 2025, the SA & Botswana group was in a net cash position of
R106 million. PPC Zimbabwe continues to remain debt free and held US$13 million in unencumbered
cash at 31 January 2025.
PPC Zimbabwe also increased its free cashflow generation leading to an increase in total dividends
declared and paid of US$13 million year-to-date compared to the US$11 million paid in the
comparable period.
SOUTH AFRICA & BOTSWANA CEMENT
In the current period, overall sales volumes in South Africa & Botswana decreased by 1% relative to
the comparable period. The decline comes from lower Botswana sales volumes, since the sales
volumes in South Africa during the current period were at much the same level as the comparable
period. Price increases were implemented in July 2024 and offset the decline in volumes with revenue
increasing by 2% in the current period.
EBITDA increased 32% resulting in significant margin expansion to 14.8% in the current period from
11.4% in the comparable period. This is also an increase from the margin of 13.7% at the half year.
While most of the operational improvements are yet to materialise, the margin increase reflects the
impact of the early delivery of a reduction in general and administrative expenses and a contribution
margin increase.
MATERIALS
The materials business comprises three distinctly different businesses, namely readymix concrete,
aggregates and fly ash. EBITDA for the entire materials business improved significantly from the loss
in the comparable period.
ZIMBABWE
Volumes declined 9% in the current period, consistent with the 9% decline at the half-year. This trend
started improving in January 2025, which is positive given that both January 2024 and 2025 had the
same level of imports in the market. Revenue declined by 12% in rand terms due to the rand
strengthening in the current period compared to the comparable period.
Despite the lower revenue, the EBITDA grew by 6% relative to the comparable period and margins
grew by 4.4 percentage points from 21.6% to 26.0% due to the strict cost control measures.
OUTLOOK
As previously announced on 16 January 2025, the best-in-class integrated cement plant in the Western
Cape that will secure PPC's cost competitiveness and low carbon cement leadership, is in the final
stage ahead of seeking board approval. The plant will be built on a turnkey engineer, procure and
construct contract which will significantly de-risk any capital overruns. The material reduction in
variable costs due to technology and fixed costs due to only operating on one site makes the plant
value accretive, compared to continuing with our existing plants in the Western Cape, without relying
on market growth.
While the significant operational improvements are still gaining momentum, the improvement of the
results in the current period already reflects early delivery of the turnaround plan, ahead of the
previously advised timeline.
Following the strong cash generation in the current period, resulting in record dividends from PPC
Zimbabwe and the healthy cashflow generation in South Africa, the board will consider a dividend in
terms of its distribution policy which, amongst other things, provides for a flow through to
shareholders of any dividends received from PPC Zimbabwe.
A capital markets day is planned for 27 March 2025 to give, amongst other things, further detail on
the execution of the Awaken the Giant turnaround plan as well as progress on the new integrated
plant.
Dunkeld
3 March 2025
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 03-03-2025 07:53:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the group")
OPERATIONAL UPDATE FOR THE TEN MONTHS ENDED 31 JANUARY 2025
STRATEGIC UPDATE
Following the appointment of Matias Cardarelli as CEO and changes to the executive leadership team
just over a year ago, PPC embarked on a transformative journey to reposition the group for sustainable
profitability and long-term growth.
The Awaken the Giant turnaround plan was developed to execute on the opportunities identified to
improve the performance of the group while scoping strategic opportunities. The first key steps
implemented, included key strategic personnel changes, the simplification of the previously complex
organisational structure, and the realignment of the organisational culture to ensure the appropriate
results orientated focus, cost discipline and a sense of urgency.
Results of the turnaround plan were evident in PPC's half-year performance reported on 18 November
2024 and have continued into the second half of the financial year as the plan gains momentum. In
the key areas of commercial, operations and supply chain, the initiatives under implementation are
already showing results, namely plant sourcing optimisation, sales product mix enhancement,
improved thermal energy costs and logistics management. These result in the EBITDA margin and
cashflow generation increase.
For ease of comparison, all the numbers in this operational update exclude CIMERWA, as CIMERWA's
results in the prior financial year, to the date of deconsolidation, were shown as discontinued
operations.
GROUP PERFORMANCE
The key performance metric improvements for the group are depicted below.
FY25 vs FY24 10 mnths
Jan '25 1
Revenue -3%
EBITDA 20%
EBITDA margin +3,2 pp
1
Changes compared to 10 months ended January 2024 ("the comparable period")
The decrease in group revenue for the 10 months ended 31 January 2025 ("the current period") was
driven mainly by a decline in the revenue in PPC's Zimbabwe operations while the South Africa &
Botswana group delivered a flat performance.
Group EBITDA margins improved to 16.6% in the current period from 13.4% in the comparable period.
This resulted in a 20% increase in total group EBITDA. The increase in both absolute EBITDA and
EBITDA margins is due to all business units improving their results mainly as a consequence of the
turnaround plan.
Capital expenditure for the group is expected to come in slightly below the guidance of R400 – R450
million for the full financial year. Some optimisation capital expenditure is being re-assessed while
maintenance expenditure was as planned.
As the stringent focus on costs and working capital take effect, the South Africa & Botswana group's
free cashflow, being net cash inflow before financing activities excluding dividends from Zimbabwe,
increased by a substantial 90% to R692 million in the current period from R364 million in the
comparable period. As at 31 January 2025, the SA & Botswana group was in a net cash position of
R106 million. PPC Zimbabwe continues to remain debt free and held US$13 million in unencumbered
cash at 31 January 2025.
PPC Zimbabwe also increased its free cashflow generation leading to an increase in total dividends
declared and paid of US$13 million year-to-date compared to the US$11 million paid in the
comparable period.
SOUTH AFRICA & BOTSWANA CEMENT
In the current period, overall sales volumes in South Africa & Botswana decreased by 1% relative to
the comparable period. The decline comes from lower Botswana sales volumes, since the sales
volumes in South Africa during the current period were at much the same level as the comparable
period. Price increases were implemented in July 2024 and offset the decline in volumes with revenue
increasing by 2% in the current period.
EBITDA increased 32% resulting in significant margin expansion to 14.8% in the current period from
11.4% in the comparable period. This is also an increase from the margin of 13.7% at the half year.
While most of the operational improvements are yet to materialise, the margin increase reflects the
impact of the early delivery of a reduction in general and administrative expenses and a contribution
margin increase.
MATERIALS
The materials business comprises three distinctly different businesses, namely readymix concrete,
aggregates and fly ash. EBITDA for the entire materials business improved significantly from the loss
in the comparable period.
ZIMBABWE
Volumes declined 9% in the current period, consistent with the 9% decline at the half-year. This trend
started improving in January 2025, which is positive given that both January 2024 and 2025 had the
same level of imports in the market. Revenue declined by 12% in rand terms due to the rand
strengthening in the current period compared to the comparable period.
Despite the lower revenue, the EBITDA grew by 6% relative to the comparable period and margins
grew by 4.4 percentage points from 21.6% to 26.0% due to the strict cost control measures.
OUTLOOK
As previously announced on 16 January 2025, the best-in-class integrated cement plant in the Western
Cape that will secure PPC's cost competitiveness and low carbon cement leadership, is in the final
stage ahead of seeking board approval. The plant will be built on a turnkey engineer, procure and
construct contract which will significantly de-risk any capital overruns. The material reduction in
variable costs due to technology and fixed costs due to only operating on one site makes the plant
value accretive, compared to continuing with our existing plants in the Western Cape, without relying
on market growth.
While the significant operational improvements are still gaining momentum, the improvement of the
results in the current period already reflects early delivery of the turnaround plan, ahead of the
previously advised timeline.
Following the strong cash generation in the current period, resulting in record dividends from PPC
Zimbabwe and the healthy cashflow generation in South Africa, the board will consider a dividend in
terms of its distribution policy which, amongst other things, provides for a flow through to
shareholders of any dividends received from PPC Zimbabwe.
A capital markets day is planned for 27 March 2025 to give, amongst other things, further detail on
the execution of the Awaken the Giant turnaround plan as well as progress on the new integrated
plant.
Dunkeld
3 March 2025
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 03-03-2025 07:53:00
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.
2025/01/16
PPC Signs Memorandum of Agreement for New R3 billion Best-in-class Integrated Cement Plant in the Western Cape
View ArticlePPC Signs Memorandum of Agreement for New R3 billion Best-in-class Integrated Cement Plant in the Western Cape
PPC Signs Memorandum of Agreement for New R3 billion Best-in-class Integrated Cement Plant in the
Western Cape
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC")
PPC signs memorandum of agreement for a new R3 billion best-in-class integrated cement plant in the
Western Cape – Press Release
PPC announced in July 2024 that it had entered into a strategic co-operation agreement with Sinoma
Overseas Development Company Ltd ("Sinoma"), in terms of which the parties agreed to partner with
each other to identify new projects and opportunities to improve efficiencies of PPC's operations.
To this end, PPC and Sinoma, the leading cement equipment and engineering company in the world, have
now entered into a memorandum of agreement for the construction of a new R3 billion state of the art
integrated cement plant. This new plant will have the ability to provide an enhanced value proposition to
both existing and new customers across the Western, Eastern and Northern Cape regions.
The 1,5 million tons of cement per annum plant, which will replace and increase existing capacity, is
planned to be constructed at one of PPC's current sites. The new plant will be equipped with the latest
technology, including a fully dedicated solar generation system. Overall, the new plant technology will
result in substantial improvements in energy efficiency, reduced coal consumption and lower emissions
per ton of cement produced. This will contribute to meaningfully lower production costs, thereby making
PPC significantly more competitive and profitable.
PPC CEO, Matias Cardarelli, said, "South Africa's cement industry is undergoing rapid change, and we are
working on building a stronger and more efficient PPC, to become the sustainable leader of the industry
in the years to come. This changing market dynamic urgently requires modern and cost-efficient assets,
and environmentally conscious cement producers. At the heart of our turnaround "Awaken the Giant"
strategy is the active pursuit of strategic opportunities and projects to ensure that we are successful in a
more competitive future market context. With this new and most advanced energy and environmentally
efficient plant in the country, we will be able to supply our customers with lower-carbon cement at a more
competitive cost. It represents a major step in the sustainability of our business moving forward and will
play a key role in achieving PPC's commitment to reduce its carbon emissions and to deliver value to
shareholders."
While the feasibility studies for the plant have reached an advanced stage, over the next three months the
parties will finalise the scope and final assessment of the new plant, as well as the associated turn-key
engineer, procure and construct ("EPC") agreements. Subject to the approval of PPC's board of directors,
it is anticipated that the construction of the new plant will start in the second quarter of 2025 and will be
commissioned by the end of calendar year 2026. The existing plants in the Western Cape will continue to
operate during the construction and commissioning process, thereby providing funding support and a
smooth transition.
Based on analyses done to date, management believes that the new plant robustly meets all PPC's capital
allocation criteria. The funding structure is being finalised, but management is of the view that the new
plant can be funded from debt facilities within PPC's current two times net debt to EBITDA covenant. This
will be assisted by cash generated by PPC's existing operations during construction and a milestone
payment structure agreed in principle with Sinoma.
Matias Cardarelli concluded, "By substituting existing capacity with a more efficient, environmentally
friendly and larger plant, we are securing PPC's competitiveness in a key market, by delivering the best
value proposition in the region to our customers. This will better position PPC for sustained profitability
for decades to come and will ensure the group's long-term future. It also represents commitment and
support of the national objective of economic growth and infrastructure development. The pursuit of this
industrial investment, which will be one of the largest in the Western Cape history, demonstrates the
continued confidence in South Africa by the PPC board and management."
PPC will be hosting an investor call today at 12h00 (SA time) via a webcast including a live question &
answer session. The investor call can be accessed at the following link:
https://www.corpcam.com/PPC16012025
Dunkeld
16 January 2025
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 16-01-2025 08:00:00
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.
Western Cape
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC")
PPC signs memorandum of agreement for a new R3 billion best-in-class integrated cement plant in the
Western Cape – Press Release
PPC announced in July 2024 that it had entered into a strategic co-operation agreement with Sinoma
Overseas Development Company Ltd ("Sinoma"), in terms of which the parties agreed to partner with
each other to identify new projects and opportunities to improve efficiencies of PPC's operations.
To this end, PPC and Sinoma, the leading cement equipment and engineering company in the world, have
now entered into a memorandum of agreement for the construction of a new R3 billion state of the art
integrated cement plant. This new plant will have the ability to provide an enhanced value proposition to
both existing and new customers across the Western, Eastern and Northern Cape regions.
The 1,5 million tons of cement per annum plant, which will replace and increase existing capacity, is
planned to be constructed at one of PPC's current sites. The new plant will be equipped with the latest
technology, including a fully dedicated solar generation system. Overall, the new plant technology will
result in substantial improvements in energy efficiency, reduced coal consumption and lower emissions
per ton of cement produced. This will contribute to meaningfully lower production costs, thereby making
PPC significantly more competitive and profitable.
PPC CEO, Matias Cardarelli, said, "South Africa's cement industry is undergoing rapid change, and we are
working on building a stronger and more efficient PPC, to become the sustainable leader of the industry
in the years to come. This changing market dynamic urgently requires modern and cost-efficient assets,
and environmentally conscious cement producers. At the heart of our turnaround "Awaken the Giant"
strategy is the active pursuit of strategic opportunities and projects to ensure that we are successful in a
more competitive future market context. With this new and most advanced energy and environmentally
efficient plant in the country, we will be able to supply our customers with lower-carbon cement at a more
competitive cost. It represents a major step in the sustainability of our business moving forward and will
play a key role in achieving PPC's commitment to reduce its carbon emissions and to deliver value to
shareholders."
While the feasibility studies for the plant have reached an advanced stage, over the next three months the
parties will finalise the scope and final assessment of the new plant, as well as the associated turn-key
engineer, procure and construct ("EPC") agreements. Subject to the approval of PPC's board of directors,
it is anticipated that the construction of the new plant will start in the second quarter of 2025 and will be
commissioned by the end of calendar year 2026. The existing plants in the Western Cape will continue to
operate during the construction and commissioning process, thereby providing funding support and a
smooth transition.
Based on analyses done to date, management believes that the new plant robustly meets all PPC's capital
allocation criteria. The funding structure is being finalised, but management is of the view that the new
plant can be funded from debt facilities within PPC's current two times net debt to EBITDA covenant. This
will be assisted by cash generated by PPC's existing operations during construction and a milestone
payment structure agreed in principle with Sinoma.
Matias Cardarelli concluded, "By substituting existing capacity with a more efficient, environmentally
friendly and larger plant, we are securing PPC's competitiveness in a key market, by delivering the best
value proposition in the region to our customers. This will better position PPC for sustained profitability
for decades to come and will ensure the group's long-term future. It also represents commitment and
support of the national objective of economic growth and infrastructure development. The pursuit of this
industrial investment, which will be one of the largest in the Western Cape history, demonstrates the
continued confidence in South Africa by the PPC board and management."
PPC will be hosting an investor call today at 12h00 (SA time) via a webcast including a live question &
answer session. The investor call can be accessed at the following link:
https://www.corpcam.com/PPC16012025
Dunkeld
16 January 2025
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 16-01-2025 08:00:00
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.
2024
2024/11/18
Group Results for the Six Month Ended 30 September 2024 and Changes to the Board of Directors
View ArticleGroup Results for the Six Month Ended 30 September 2024 and Changes to the Board of Directors
Click below to view full PDF article
https://senspdf.jse.co.za/documents/2024/jse/isse/ppc/PPC30Sep.pdf
Group Results for the Six Month Ended 30 September 2024 and Changes to the Board of Directors
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(PPC or the company or the group)
GROUP RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024 - SHORT-FORM ANNOUNCEMENT
CHANGES TO THE BOARD OF DIRECTORS
"Awaken the Giant" is the call to action that will define our turnaround strategy. It talks to our confidence of
the impact of the internal value that can be unlocked in driving the PPC turnaround. PPC half-year results closed
with a strong second quarter rebuilding off a weaker first quarter. We have early positive and encouraging signs
in all lines of our business. As we begin to address the challenges, the benefits of the turnaround actions are
starting to be realised.
The turnaround process involves a deep recalibration and upskilling of people, organisational culture and processes.
This will ensure the organisation is ready to focus on operational efficiency, asset optimisation and contribution
margin growth. The challenging heritage and extent of the changes required are pervasive, but we have built a
high-calibre team to drive the turnaround.
We have made key changes in our structure, recruiting highly skilled and experienced talent that have strengthened our
commercial, logistics, IT and industrial teams. At the same time, we launched an industrial performance programme
with clear targets for all equipment from the quarry to dispatch, instilled cost centre ownership and eliminated
unnecessary expenses. As we gain access to reliable management information, the market approach will follow,
optimising sourcing, products offering and a footprint that will benefit our customers.
Cost discipline and price growth were the main drivers of the recovery in the results and margin of the
SA & Botswana group despite the lower sales volumes in the period. PPC Zimbabwe's lower sales reflect a return to
a normal market after imports restriction experienced in H1 FY24 was lifted in October 2023. The impact of the
normalised volumes was offset by cost saving initiatives reflecting in margin growth.
The PPC board and I are in full alignment on the Awaken the Giant journey to return PPC to profitability
leadership. The opportunities far outweigh the risks, but we are conscious of the challenges and complexity ahead
of us.
My confidence in the size of the turnaround reward is growing.
Matias Cardarelli, Chief executive officer
Consolidated group
As we implement the "Awaken the Giant" turnaround, its benefits have begun to materialise in the second quarter
Strong cash flow generation in the current period
- Net cash inflow before financing activities increased 36,2% to R500 million (H1 F24: R367 million)
- Revenue down 4,2% to R5 067 million (H1 FY24: R5 289 million)
- EBITDA margin up 0,6% to 15,7% (H1 FY24: 15,1%)
- EBITDA of R796 million (H1 FY24: R800 million)
- HEPS up 22 cents (H1 FY24: 20 cents)
- EPS up 22 cents (H1 FY24: 18 cents)
- Following the approval of the relevant competition authorities of PPC's sale of its investment in Rwanda,
a special dividend totalling R521 million was declared and paid during the period.
Individual businesses
SA & Botswana group
Solid performance given prior period tailwinds as cost containment measures start taking effect
- Revenue down 0,6% to R3 526 million (H1 FY24: R3 546 million)
- EBITDA margins up 0,7% to 10,6% (H1 FY24: 9,9%)
- EBITDA up 5,9% to R394 million (H1 FY24: R372 million)
- Net cash inflow before financing activities up R303 million (H1 F24: R199 million)
- The SA & Botswana group's debt facilities were re-structured on 15 September and current drawn facilities
are R502 million (H1 FY24 R855 million)
PPC Zimbabwe
Margin expansion despite volumes being negatively impacted by the resumption of imports
- Revenue down 11,6% to R1 541 million (H1 FY24: R1 743 million)
- EBITDA margins up 1,5% to 26,1% (H1 FY24: 24.6%)
- EBITDA down 6,3% to R402 million (H1 FY24: R429 million)
- Net cash inflow before financing activities down R202 million (H1 FY24: R208 million)
- Dividend of US$4,0 million was declared on 6 September 2024,
and paid after 30 September 2024 (H1 FY24: US$4,0 million)
Group performance - continuing operations
PPC delivered higher cash flow generation for the six months to 30 September 2024 (the current period) compared
to the six months to 30 September 2023 (the prior period), despite an overall decline in cement volumes in both
South Africa and Zimbabwe, as well as in the readymix and ash businesses.
Group revenue decreased 4,2% to R5 067 million (H1 FY24: R5 289 million) as Zimbabwe's revenue decreased by 11,6%
due to the resumption of imports and materials revenue reduced by 9,5% due to lower revenues in the readymix
business.
Group cost of sales decreased 5,1% to R4 103 million (H1 FY24: R4 322 million), being a higher rate of decrease
than revenue, which, when combined with 6,9% decrease in administration and other operating expenses, resulted in
a 7,5% increase in trading profit to R502 million (H1 FY24: R467 million).
Group EBITDA decreased 0,6% to R796 million (H1 FY24: R800 million) but EBITDA margins expanded encouragingly in
all the markets notwithstanding the lower sales volumes. Group EBITDA margin increased by 0,6 percentage points
to 15,7% (H1 FY24: 15,1%).
No impairments were required in the current period compared to the impairment of R53 million in the prior period
relating the mothballing by PPC Cement SA of its Jupiter milling plant.
Finance costs decreased 7,8% to R59 million (H1 FY24: R64 million). Lower overall debt levels compared to the
prior year resulted in interest paid decreasing by R9 million, offset partially by higher finance costs on
increased lease liabilities. Investment income increased to R37 million (H1 FY24: R14 million) on significantly
higher cash balances following the sale of PPC's business in Rwanda.
Profit before tax increased to R474 million (H1 FY24: R357 million) and profit after tax was R318 million
(H1 FY24: R269 million). The effective tax rate for the current period is 33% (H1 FY24: 25%). The prior period
was positively impacted by a non-cash unwinding of deferred tax due to changes in the functional currency of
Zimbabwe.
Earnings per share (EPS) and headline earnings per share (HEPS) both increased to 22 cents
(H1 FY24: EPS 18 cents and HEPS 20 cents).
The group's net cash inflow before financing activities increased by 36,2% to R500 million (H1 FY24: R367 million,
excluding discontinued operations) due mainly to the unwind of inventory that built up at 31 March 2024 year-end
and continued strict control of inventory levels. The positive working capital movement was partially offset by
increased cash taxes of R167 million, R20 million of which related to the FY24 financial year. Cash generation
and working capital management remains a key focus area.
Discipline in capital allocation continued in the current period and capital expenditure was R186 million
(H1 FY24: R172 million). The main drivers of the movement comprised an increase in maintenance expenditure in
Zimbabwe of R39 million due to two major kiln stoppages in the current period to replace liners, compared to one
short stop in the prior period given the extended kiln shutdown in FY23. This was partially offset by a reduction
in maintenance expenditure in the South African cement business of R21 million. Following the conclusion of the
sale of PPC's investment in Rwanda, a special dividend totalling R521 million, being 66% of the net proceeds
received, was declared and settled during the current period. The ordinary cash dividend totalling R214 million,
declared in June 2024, was also settled during the current period. The net cash outlay relating to both the
special and ordinary dividends amounted to R703 million after taking into account the dividends received by the
subsidiary that effected the share buy-back during FY24.
Group net debt declined to R203 million (H1 FY24: R488 million) but increased compared to the net cash position
of R78 million at 31 March 2024. The main drivers of the movement in net cash/debt from 31 March 2024 is a net
dividend paid of R703 million, cash generated from operations (before financing activities of R500 million) and
a negative R52 million impact exchange differences on closing cash balances.
South Africa and Botswana cement
Overall, cement sales volumes in South Africa and Botswana for the current period were down 5,8% when compared to
the prior period, due to a decline in retail or bagged cement sales as bulk cement sales increased. While retail
demand is relatively flat period-on-period, aggressive pricing from some competitors drove the lower sales volumes.
The benefit of the positive sentiment following the elections earlier this year is still not reflected in the
construction market, but PPC has secured new projects with associated growth in several regions of the bulk
market.
Notwithstanding declining volumes, average selling price increases resulted in cement revenues being almost flat.
Overall, including clinker sales, the SA & Botswana group revenue increased by 1,5% to R3 015 million
(H1 FY24: R2 972 million) for the six months ended 30 September 2024.
Despite the cost inflation and continued high electricity tariff increases during the period, cost of sales
increased by 1,4% assisted by the impact on variable costs of the volume decrease and initial benefits from the
turnaround actions.
Due to changes in the methodology used by PPC Group Services (Group Services) to charge management fees to the
other group companies in the current period versus the prior period and the fact that, with effect 1 October 2024,
all the activities undertaken by and employees of Group Services were taken over by PPC Cement SA, it is more
meaningful to re-present the relevant segmental information to be on a like-for-like basis and in-line with
future practice.
Based on the re-presented information, administration and other operating expenses decreased by 14,8% to
R283 million (H1 FY24: R333 million) as cost discipline builds momentum. EBITDA increased 3,9% to
R392 million (H1 FY24: R377 million) as margins expanded by 0,4 percentage points to 12,3% (H1 FY24: 11,9%).
During the current period PPC Cement SA refinanced its core borrowing facilities on behalf of the SA &
Botswana group to reestablish an appropriate repayment profile and to secure improved pricing. Gross debt of
the SA & Botswana group reduced by R278 million to R501 million (31 March 2024: R779 million)
(H1 FY24: R854 million) and net leverage levels remain well below the target range of 1,3 to 1,5 times last
twelve months EBITDA of the SA & Botswana group.
SA and Botswana cement PPC Ltd and other*
September September September September
2024 2023 2024 2023
Rm Rm Rm Rm
Gross revenue 3 173 3 158 (179) (198)
Cost of sales (2 680) (2 645) 182 198
Expected credit losses (4) - - 1
Administration and other operating expenses (283) (333) (38) (37)
Trading profit 206 180 (35) (36)
EBITDA 392 377 (26) (20)
EBITDA margin 12,3% 11,9%
*Group Services and other in segmental informational on page 12 of the Summarised unaudited consolidated financial
statements.
Aggregates, readymix and ash
Overall, revenue for the materials division decreased by 11,0% to R511 million (H1 FY24: R574 million), given
significantly lower volumes in the readymix and ash businesses. Cost control and turnaround measures delivered
positive results with all three businesses contributing positively to EBITDA. The divisional EBITDA, doubled to
R28 million (H1 FY24: R14 million).
Zimbabwe
PPC's operation in Zimbabwe reported a 9,1% decrease in sales volumes compared to the prior period when imports
were banned, which reflects the market share adjustment.
Revenue for the current period decreased by 11,6% to R1 541 million (H1 FY24: R1 743 million) comprising the
lower sales volumes, relatively flat average US$ selling prices and a strengthening rand. The lower volume of
purchased clinker, together with improved logistics costs and lower coal costs due to contract renegotiation,
more than offset the 76% electricity tariff increases implemented in November and December 2023. This resulted in
a 1,5% improvement in EBITDA margin to 26,1% (H1 FY24: 24,6%). It also partially offset the impact of the lower
revenue resulting in an EBITDA decrease of 6,3% of R402 million (H1 FY24: R429 million).
Zimbabwe remains debt-free and had unrestricted cash holdings at 30 September 2024 of R197 million up from
R40 million at 31 March 2024 (H1 FY24: R226 million). Some 97% of PPC Zimbabwe's cash is held in hard currencies.
Zimbabwe declared a US$4,0 million dividend during the current period which was paid in October 2024.
Strategic plan
In its results for the year ended 31 March 2024, PPC reported that internal gaps had been identified that needed
to be addressed with urgency to realise the significant opportunities in the business. During step one of the
process, which was largely completed in the current period, PPC implemented key strategic personnel changes,
simplified the previously complex organisation structure, concluded a deep-dive process and developed the Awaken
the Giant turnaround strategy.
The realigning of the organisational culture to have the right focus and a sense of urgency is progressing
demonstrated by the positive impact of cost discipline on the first half results. Training, seasoned managers and
upgraded processes are driving the upskilling in technical areas and the development of key leadership skills.
Step two is implementation of the Awaken the Giant turnaround plan, which comprises eight key focus 'commandments',
covering the following three pillars:
- Operations and supply chain - operational efficiencies and competitive costs of production
- Commercial - an enhanced commercial footprint: right channels with the right products
- Cost mindset - a lean agile structure focused on manpower costs, general and administration expenses and
rigorous capital expenditure control
This is underpinned by safety as the core central value. The key financial metrics that will reflect success are
absolute EBITDA; EBITDA margin; cash flow generation; and return on invested capital.
Simplification and back-to-basics in our plants coupled with the performance programme will drive productivity
and the output needed to support the commercial growth strategy. The go-to-market strategy aims to win back
customers by reinstating a more competitive offer through leveraging our competitive advantages. The logistics
area is also critical, and this function will be in-housed in Q4 FY25.
As part of the operational efficiency pillar, PPC signed a strategic cooperation agreement with Sinoma Overseas
Development Co. Ltd, the leading cement equipment and engineering company in the world to improve efficiencies at
our cement operations and review key capital expenditure improvement/expansion plans.
The "turnaround mindset" is becoming entrenched resulting in an organisation focused on execution and pace rather
than perfection.
Outlook
There are positive signs in the economy reflecting increasing confidence from the private sector and a more dynamic
tender process in the public sector.
Now is the time for industry players, regulators, customers, suppliers and the government to unite and take
decisive action on important infrastructure projects. This collaboration will help secure a prosperous and
sustainable future for the cement industry, the country and generations to come.
To build a successful local cement industry, it's essential to establish checks and balances to hold all producers
-both local and international - accountable. This is critical to ensure that local consumers receive high-quality
products from cement producers and blenders.
Collaboration between the private and public sectors will be crucial in the non-fossil energy fuels transition.
This will help reduce carbon dioxide emissions, protecting the environment for both current and future
generations, while also lowering production costs.
PPC's long-term sustainability does not solely rely on an improved overall economic environment. Instead, our
turnaround strategy, which focuses on unlocking internal value, will place us in a strong position as
infrastructure projects begin to materialise.
The turnaround impact will continue to unfold in the second half of the financial year that is cyclically weaker
due to the slowdown of the construction sector in December and January. Further turnaround impacts are expected
to become evident in the next financial year.
The group will continue to apply its strict capital allocation policy and will assess a dividend to shareholders
in terms of the stated policy at the full year-end.
Matias Cardarelli
Chief executive officer
SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors. It is only a summary of the information contained
in the full announcement and does not contain full or complete details.
Any investment decision should be based on the full announcement accessible from Monday, 18 November 2024, via the JSE
link as follows: https://senspdf.jse.co.za/documents/2024/JSE/ISSE/PPC/PPC30Sep.pdf
and also available on the Company's website at https://www.ppc.africa/investors-relations /reports/?t=interim
A copy of the full announcement is also available for inspection at the company's registered office and may be
requested from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours.
A live webcast of the presentation will be held today at 10am and can be accessed via this link:
https://www.corpcam.com//PPC18112024
CHANGES TO THE BOARD OF DIRECTORS
In accordance with paragraph 3.59(b) of the JSE Limited Listings Requirements, the board of directors of the
Company ("the Board") wishes to advise shareholders that due to other professional commitments, Mr. Daniel Smith
has on 15 November 2024 tendered his resignation as non-executive director, and accordingly as member of the
Strategy and Investment Committee of the Company, with effect from 31 March 2025.
The Board extends its appreciation and sincere thanks to Daniel for his commitment, service and valuable
contribution to the Company and wishes Daniel continued success in all future endeavours.
Registered office:
First Floor, 5 Parks Boulevard, Oxford Parks, Dunkeld, South Africa (PO Box 787416, Sandton, 2146, South Africa)
Directors:
PJ Moleketi (chair), SM Cardarelli* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo,
CH Naude, D Smith, MR Thompson
*Argentinean **Danish
Company secretary: KR Ross
18 November 2024
Dunkeld
Sponsor: Questco Corporate Advisory (Pty) Ltd
Date: 18-11-2024 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.
https://senspdf.jse.co.za/documents/2024/jse/isse/ppc/PPC30Sep.pdf
Group Results for the Six Month Ended 30 September 2024 and Changes to the Board of Directors
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(PPC or the company or the group)
GROUP RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024 - SHORT-FORM ANNOUNCEMENT
CHANGES TO THE BOARD OF DIRECTORS
"Awaken the Giant" is the call to action that will define our turnaround strategy. It talks to our confidence of
the impact of the internal value that can be unlocked in driving the PPC turnaround. PPC half-year results closed
with a strong second quarter rebuilding off a weaker first quarter. We have early positive and encouraging signs
in all lines of our business. As we begin to address the challenges, the benefits of the turnaround actions are
starting to be realised.
The turnaround process involves a deep recalibration and upskilling of people, organisational culture and processes.
This will ensure the organisation is ready to focus on operational efficiency, asset optimisation and contribution
margin growth. The challenging heritage and extent of the changes required are pervasive, but we have built a
high-calibre team to drive the turnaround.
We have made key changes in our structure, recruiting highly skilled and experienced talent that have strengthened our
commercial, logistics, IT and industrial teams. At the same time, we launched an industrial performance programme
with clear targets for all equipment from the quarry to dispatch, instilled cost centre ownership and eliminated
unnecessary expenses. As we gain access to reliable management information, the market approach will follow,
optimising sourcing, products offering and a footprint that will benefit our customers.
Cost discipline and price growth were the main drivers of the recovery in the results and margin of the
SA & Botswana group despite the lower sales volumes in the period. PPC Zimbabwe's lower sales reflect a return to
a normal market after imports restriction experienced in H1 FY24 was lifted in October 2023. The impact of the
normalised volumes was offset by cost saving initiatives reflecting in margin growth.
The PPC board and I are in full alignment on the Awaken the Giant journey to return PPC to profitability
leadership. The opportunities far outweigh the risks, but we are conscious of the challenges and complexity ahead
of us.
My confidence in the size of the turnaround reward is growing.
Matias Cardarelli, Chief executive officer
Consolidated group
As we implement the "Awaken the Giant" turnaround, its benefits have begun to materialise in the second quarter
Strong cash flow generation in the current period
- Net cash inflow before financing activities increased 36,2% to R500 million (H1 F24: R367 million)
- Revenue down 4,2% to R5 067 million (H1 FY24: R5 289 million)
- EBITDA margin up 0,6% to 15,7% (H1 FY24: 15,1%)
- EBITDA of R796 million (H1 FY24: R800 million)
- HEPS up 22 cents (H1 FY24: 20 cents)
- EPS up 22 cents (H1 FY24: 18 cents)
- Following the approval of the relevant competition authorities of PPC's sale of its investment in Rwanda,
a special dividend totalling R521 million was declared and paid during the period.
Individual businesses
SA & Botswana group
Solid performance given prior period tailwinds as cost containment measures start taking effect
- Revenue down 0,6% to R3 526 million (H1 FY24: R3 546 million)
- EBITDA margins up 0,7% to 10,6% (H1 FY24: 9,9%)
- EBITDA up 5,9% to R394 million (H1 FY24: R372 million)
- Net cash inflow before financing activities up R303 million (H1 F24: R199 million)
- The SA & Botswana group's debt facilities were re-structured on 15 September and current drawn facilities
are R502 million (H1 FY24 R855 million)
PPC Zimbabwe
Margin expansion despite volumes being negatively impacted by the resumption of imports
- Revenue down 11,6% to R1 541 million (H1 FY24: R1 743 million)
- EBITDA margins up 1,5% to 26,1% (H1 FY24: 24.6%)
- EBITDA down 6,3% to R402 million (H1 FY24: R429 million)
- Net cash inflow before financing activities down R202 million (H1 FY24: R208 million)
- Dividend of US$4,0 million was declared on 6 September 2024,
and paid after 30 September 2024 (H1 FY24: US$4,0 million)
Group performance - continuing operations
PPC delivered higher cash flow generation for the six months to 30 September 2024 (the current period) compared
to the six months to 30 September 2023 (the prior period), despite an overall decline in cement volumes in both
South Africa and Zimbabwe, as well as in the readymix and ash businesses.
Group revenue decreased 4,2% to R5 067 million (H1 FY24: R5 289 million) as Zimbabwe's revenue decreased by 11,6%
due to the resumption of imports and materials revenue reduced by 9,5% due to lower revenues in the readymix
business.
Group cost of sales decreased 5,1% to R4 103 million (H1 FY24: R4 322 million), being a higher rate of decrease
than revenue, which, when combined with 6,9% decrease in administration and other operating expenses, resulted in
a 7,5% increase in trading profit to R502 million (H1 FY24: R467 million).
Group EBITDA decreased 0,6% to R796 million (H1 FY24: R800 million) but EBITDA margins expanded encouragingly in
all the markets notwithstanding the lower sales volumes. Group EBITDA margin increased by 0,6 percentage points
to 15,7% (H1 FY24: 15,1%).
No impairments were required in the current period compared to the impairment of R53 million in the prior period
relating the mothballing by PPC Cement SA of its Jupiter milling plant.
Finance costs decreased 7,8% to R59 million (H1 FY24: R64 million). Lower overall debt levels compared to the
prior year resulted in interest paid decreasing by R9 million, offset partially by higher finance costs on
increased lease liabilities. Investment income increased to R37 million (H1 FY24: R14 million) on significantly
higher cash balances following the sale of PPC's business in Rwanda.
Profit before tax increased to R474 million (H1 FY24: R357 million) and profit after tax was R318 million
(H1 FY24: R269 million). The effective tax rate for the current period is 33% (H1 FY24: 25%). The prior period
was positively impacted by a non-cash unwinding of deferred tax due to changes in the functional currency of
Zimbabwe.
Earnings per share (EPS) and headline earnings per share (HEPS) both increased to 22 cents
(H1 FY24: EPS 18 cents and HEPS 20 cents).
The group's net cash inflow before financing activities increased by 36,2% to R500 million (H1 FY24: R367 million,
excluding discontinued operations) due mainly to the unwind of inventory that built up at 31 March 2024 year-end
and continued strict control of inventory levels. The positive working capital movement was partially offset by
increased cash taxes of R167 million, R20 million of which related to the FY24 financial year. Cash generation
and working capital management remains a key focus area.
Discipline in capital allocation continued in the current period and capital expenditure was R186 million
(H1 FY24: R172 million). The main drivers of the movement comprised an increase in maintenance expenditure in
Zimbabwe of R39 million due to two major kiln stoppages in the current period to replace liners, compared to one
short stop in the prior period given the extended kiln shutdown in FY23. This was partially offset by a reduction
in maintenance expenditure in the South African cement business of R21 million. Following the conclusion of the
sale of PPC's investment in Rwanda, a special dividend totalling R521 million, being 66% of the net proceeds
received, was declared and settled during the current period. The ordinary cash dividend totalling R214 million,
declared in June 2024, was also settled during the current period. The net cash outlay relating to both the
special and ordinary dividends amounted to R703 million after taking into account the dividends received by the
subsidiary that effected the share buy-back during FY24.
Group net debt declined to R203 million (H1 FY24: R488 million) but increased compared to the net cash position
of R78 million at 31 March 2024. The main drivers of the movement in net cash/debt from 31 March 2024 is a net
dividend paid of R703 million, cash generated from operations (before financing activities of R500 million) and
a negative R52 million impact exchange differences on closing cash balances.
South Africa and Botswana cement
Overall, cement sales volumes in South Africa and Botswana for the current period were down 5,8% when compared to
the prior period, due to a decline in retail or bagged cement sales as bulk cement sales increased. While retail
demand is relatively flat period-on-period, aggressive pricing from some competitors drove the lower sales volumes.
The benefit of the positive sentiment following the elections earlier this year is still not reflected in the
construction market, but PPC has secured new projects with associated growth in several regions of the bulk
market.
Notwithstanding declining volumes, average selling price increases resulted in cement revenues being almost flat.
Overall, including clinker sales, the SA & Botswana group revenue increased by 1,5% to R3 015 million
(H1 FY24: R2 972 million) for the six months ended 30 September 2024.
Despite the cost inflation and continued high electricity tariff increases during the period, cost of sales
increased by 1,4% assisted by the impact on variable costs of the volume decrease and initial benefits from the
turnaround actions.
Due to changes in the methodology used by PPC Group Services (Group Services) to charge management fees to the
other group companies in the current period versus the prior period and the fact that, with effect 1 October 2024,
all the activities undertaken by and employees of Group Services were taken over by PPC Cement SA, it is more
meaningful to re-present the relevant segmental information to be on a like-for-like basis and in-line with
future practice.
Based on the re-presented information, administration and other operating expenses decreased by 14,8% to
R283 million (H1 FY24: R333 million) as cost discipline builds momentum. EBITDA increased 3,9% to
R392 million (H1 FY24: R377 million) as margins expanded by 0,4 percentage points to 12,3% (H1 FY24: 11,9%).
During the current period PPC Cement SA refinanced its core borrowing facilities on behalf of the SA &
Botswana group to reestablish an appropriate repayment profile and to secure improved pricing. Gross debt of
the SA & Botswana group reduced by R278 million to R501 million (31 March 2024: R779 million)
(H1 FY24: R854 million) and net leverage levels remain well below the target range of 1,3 to 1,5 times last
twelve months EBITDA of the SA & Botswana group.
SA and Botswana cement PPC Ltd and other*
September September September September
2024 2023 2024 2023
Rm Rm Rm Rm
Gross revenue 3 173 3 158 (179) (198)
Cost of sales (2 680) (2 645) 182 198
Expected credit losses (4) - - 1
Administration and other operating expenses (283) (333) (38) (37)
Trading profit 206 180 (35) (36)
EBITDA 392 377 (26) (20)
EBITDA margin 12,3% 11,9%
*Group Services and other in segmental informational on page 12 of the Summarised unaudited consolidated financial
statements.
Aggregates, readymix and ash
Overall, revenue for the materials division decreased by 11,0% to R511 million (H1 FY24: R574 million), given
significantly lower volumes in the readymix and ash businesses. Cost control and turnaround measures delivered
positive results with all three businesses contributing positively to EBITDA. The divisional EBITDA, doubled to
R28 million (H1 FY24: R14 million).
Zimbabwe
PPC's operation in Zimbabwe reported a 9,1% decrease in sales volumes compared to the prior period when imports
were banned, which reflects the market share adjustment.
Revenue for the current period decreased by 11,6% to R1 541 million (H1 FY24: R1 743 million) comprising the
lower sales volumes, relatively flat average US$ selling prices and a strengthening rand. The lower volume of
purchased clinker, together with improved logistics costs and lower coal costs due to contract renegotiation,
more than offset the 76% electricity tariff increases implemented in November and December 2023. This resulted in
a 1,5% improvement in EBITDA margin to 26,1% (H1 FY24: 24,6%). It also partially offset the impact of the lower
revenue resulting in an EBITDA decrease of 6,3% of R402 million (H1 FY24: R429 million).
Zimbabwe remains debt-free and had unrestricted cash holdings at 30 September 2024 of R197 million up from
R40 million at 31 March 2024 (H1 FY24: R226 million). Some 97% of PPC Zimbabwe's cash is held in hard currencies.
Zimbabwe declared a US$4,0 million dividend during the current period which was paid in October 2024.
Strategic plan
In its results for the year ended 31 March 2024, PPC reported that internal gaps had been identified that needed
to be addressed with urgency to realise the significant opportunities in the business. During step one of the
process, which was largely completed in the current period, PPC implemented key strategic personnel changes,
simplified the previously complex organisation structure, concluded a deep-dive process and developed the Awaken
the Giant turnaround strategy.
The realigning of the organisational culture to have the right focus and a sense of urgency is progressing
demonstrated by the positive impact of cost discipline on the first half results. Training, seasoned managers and
upgraded processes are driving the upskilling in technical areas and the development of key leadership skills.
Step two is implementation of the Awaken the Giant turnaround plan, which comprises eight key focus 'commandments',
covering the following three pillars:
- Operations and supply chain - operational efficiencies and competitive costs of production
- Commercial - an enhanced commercial footprint: right channels with the right products
- Cost mindset - a lean agile structure focused on manpower costs, general and administration expenses and
rigorous capital expenditure control
This is underpinned by safety as the core central value. The key financial metrics that will reflect success are
absolute EBITDA; EBITDA margin; cash flow generation; and return on invested capital.
Simplification and back-to-basics in our plants coupled with the performance programme will drive productivity
and the output needed to support the commercial growth strategy. The go-to-market strategy aims to win back
customers by reinstating a more competitive offer through leveraging our competitive advantages. The logistics
area is also critical, and this function will be in-housed in Q4 FY25.
As part of the operational efficiency pillar, PPC signed a strategic cooperation agreement with Sinoma Overseas
Development Co. Ltd, the leading cement equipment and engineering company in the world to improve efficiencies at
our cement operations and review key capital expenditure improvement/expansion plans.
The "turnaround mindset" is becoming entrenched resulting in an organisation focused on execution and pace rather
than perfection.
Outlook
There are positive signs in the economy reflecting increasing confidence from the private sector and a more dynamic
tender process in the public sector.
Now is the time for industry players, regulators, customers, suppliers and the government to unite and take
decisive action on important infrastructure projects. This collaboration will help secure a prosperous and
sustainable future for the cement industry, the country and generations to come.
To build a successful local cement industry, it's essential to establish checks and balances to hold all producers
-both local and international - accountable. This is critical to ensure that local consumers receive high-quality
products from cement producers and blenders.
Collaboration between the private and public sectors will be crucial in the non-fossil energy fuels transition.
This will help reduce carbon dioxide emissions, protecting the environment for both current and future
generations, while also lowering production costs.
PPC's long-term sustainability does not solely rely on an improved overall economic environment. Instead, our
turnaround strategy, which focuses on unlocking internal value, will place us in a strong position as
infrastructure projects begin to materialise.
The turnaround impact will continue to unfold in the second half of the financial year that is cyclically weaker
due to the slowdown of the construction sector in December and January. Further turnaround impacts are expected
to become evident in the next financial year.
The group will continue to apply its strict capital allocation policy and will assess a dividend to shareholders
in terms of the stated policy at the full year-end.
Matias Cardarelli
Chief executive officer
SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors. It is only a summary of the information contained
in the full announcement and does not contain full or complete details.
Any investment decision should be based on the full announcement accessible from Monday, 18 November 2024, via the JSE
link as follows: https://senspdf.jse.co.za/documents/2024/JSE/ISSE/PPC/PPC30Sep.pdf
and also available on the Company's website at https://www.ppc.africa/investors-relations /reports/?t=interim
A copy of the full announcement is also available for inspection at the company's registered office and may be
requested from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours.
A live webcast of the presentation will be held today at 10am and can be accessed via this link:
https://www.corpcam.com//PPC18112024
CHANGES TO THE BOARD OF DIRECTORS
In accordance with paragraph 3.59(b) of the JSE Limited Listings Requirements, the board of directors of the
Company ("the Board") wishes to advise shareholders that due to other professional commitments, Mr. Daniel Smith
has on 15 November 2024 tendered his resignation as non-executive director, and accordingly as member of the
Strategy and Investment Committee of the Company, with effect from 31 March 2025.
The Board extends its appreciation and sincere thanks to Daniel for his commitment, service and valuable
contribution to the Company and wishes Daniel continued success in all future endeavours.
Registered office:
First Floor, 5 Parks Boulevard, Oxford Parks, Dunkeld, South Africa (PO Box 787416, Sandton, 2146, South Africa)
Directors:
PJ Moleketi (chair), SM Cardarelli* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo,
CH Naude, D Smith, MR Thompson
*Argentinean **Danish
Company secretary: KR Ross
18 November 2024
Dunkeld
Sponsor: Questco Corporate Advisory (Pty) Ltd
Date: 18-11-2024 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.
Trading Statement for the Six Months ended 30 September 2024
Trading Statement for the Six Months ended 30 September 2024
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
("PPC" or "the group")
TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
PPC is currently finalising its results for the six months ended 30 September 2024 ("the current period").
Shareholders are advised that PPC is satisfied that a reasonable degree of certainty exists that the
expected earnings per share ("EPS") and headline earning per share ("HEPS") for the group in the current
period will not differ by more than 20% from that for the previous corresponding period, being the six months
ended 30 September 2023 ("the prior period"). However, the prior period results will be re-presented to
disclose discontinued operations (CIMERWA in Rwanda) separately from continuing operations and
accordingly, a voluntary trading statement is being issued regarding the EPS and HEPS of the continuing
operations.
The following EPS and HEPS for the continuing operations are expected:
Current period Prior period
Expectation range Re-presented*
Continuing operations EPS (cents) 20.0 to 23.5 18
Continuing operations HEPS (cents) 20.0 to 23.5 20
* The prior period figures have been re-presented to disclose discontinued operations separately
Based on the above, EPS is expected to be between 11% and 31% higher than the prior period and HEPS
is expected to be between 0% and 18% higher than the prior period.
The improvement in EPS primarily due to an overall reduction in the group's administration and other
operating expenditure in the SA and Botswana group, which partially offset the weaker performance in
Zimbabwe, increased investment income due to higher average cash balances in the current period and a
non-recurrence of a pre-tax R53 million impairment in the prior period. The aforementioned were partially
offset by a higher tax charge with the effective tax rate at some 33% (prior period: 25%)
The financial information on which this trading statement is based is the responsibility of the directors of
PPC and has not been reviewed or reported on by the group's independent external auditor. Full details of
the group's performance will be contained in the group's unaudited consolidated financial statements for
the six months ended 30 September 2024, which are expected to be released on or about 18 November
2024.
Dunkeld
28 October 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 28-10-2024 07:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
("PPC" or "the group")
TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
PPC is currently finalising its results for the six months ended 30 September 2024 ("the current period").
Shareholders are advised that PPC is satisfied that a reasonable degree of certainty exists that the
expected earnings per share ("EPS") and headline earning per share ("HEPS") for the group in the current
period will not differ by more than 20% from that for the previous corresponding period, being the six months
ended 30 September 2023 ("the prior period"). However, the prior period results will be re-presented to
disclose discontinued operations (CIMERWA in Rwanda) separately from continuing operations and
accordingly, a voluntary trading statement is being issued regarding the EPS and HEPS of the continuing
operations.
The following EPS and HEPS for the continuing operations are expected:
Current period Prior period
Expectation range Re-presented*
Continuing operations EPS (cents) 20.0 to 23.5 18
Continuing operations HEPS (cents) 20.0 to 23.5 20
* The prior period figures have been re-presented to disclose discontinued operations separately
Based on the above, EPS is expected to be between 11% and 31% higher than the prior period and HEPS
is expected to be between 0% and 18% higher than the prior period.
The improvement in EPS primarily due to an overall reduction in the group's administration and other
operating expenditure in the SA and Botswana group, which partially offset the weaker performance in
Zimbabwe, increased investment income due to higher average cash balances in the current period and a
non-recurrence of a pre-tax R53 million impairment in the prior period. The aforementioned were partially
offset by a higher tax charge with the effective tax rate at some 33% (prior period: 25%)
The financial information on which this trading statement is based is the responsibility of the directors of
PPC and has not been reviewed or reported on by the group's independent external auditor. Full details of
the group's performance will be contained in the group's unaudited consolidated financial statements for
the six months ended 30 September 2024, which are expected to be released on or about 18 November
2024.
Dunkeld
28 October 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 28-10-2024 07:30:00
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.
Operating Update for the Four Months ended 31 July 2024
Operating Update for the Four Months ended 31 July 2024
PPC Ltd
Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "company" or "group")
OPERATING UPDATE FOR THE FOUR MONTHS ENDED 31 JULY 2024
GROUP OPERATIONAL PERFORMANCE
The PPC group comprises the South Africa ("SA") and Botswana group, which includes cement, materials and
group services, and Zimbabwe. Following the stabilisation of the balance sheet and the sale of non-strategic assets
in prior years, PPC recently started the challenging process of improving profitability and returns on the group's
assets. The turnaround intervention that has commenced is focused on people, organisational culture, processes,
as well as industrial and supply chain optimisation, to enhance the competitive position of the group in its various
markets. The positive effects of these efforts are expected to become evident in the next financial year.
For the four months ended July 2024 (the "current period") compared to the four months ended July 2023 (the
"comparable period"), group revenue declined 2.1%. Revenue in the SA and Botswana group declined 1.0% and
revenue in Zimbabwe decreased 4.5%.
Zimbabwe contributed 30% to group revenue in the current period compared to the 33% contribution for the
twelve months ended 31 March 2024 ("FY2024"). Cement remains the core business of PPC, contributing 90% of
revenue for the current period while materials contributed the remaining 10%. This remains in line with the
comparable period.
Average cement selling prices increased across the group while cement sales volumes (including Zimbabwe) for
the current period were 5.3% lower than the comparable period. Albeit its much smaller impact on the overall
group, pricing also increased across all three materials businesses but was offset by declines in volumes in the
readymix and ash businesses.
EBITDA margin for the group declined from 15.9% in the comparable period to 13.7% in the current period, with
the comparable period margin positively impacted by the market tailwinds experienced in the first quarter of the
prior year.
Notwithstanding the absolute reduction in EBITDA, net cash generation by the SA and Botswana group, before
financing activities and excluding dividends received from PPC Zimbabwe, improved from R129 million to R192
million. The biggest single contributor was the improvement in working capital mainly in inventory levels.
During the current period an ordinary dividend totalling R213 million was declared and paid. Gross cash balances
for the group increased from R897 million at 31 March 2024 to R969 million at 31 July 2024. Total group debt
remained unchanged since 31 March 2024 at R775 million.
A special dividend totalling R521 million was declared on 28 August 2024 and was settled on 23 September 2024.
No dividend was received from PPC's operations in Zimbabwe in the current period (comparable period: US$4
million), but a dividend of US$4 million was declared by PPC Zimbabwe on 6 September 2023.
SOUTH AFRICA & BOTSWANA CEMENT
Cement sales volumes in South Africa and Botswana decreased by 4.6% in the current period compared to the
comparable period. The average selling price in South Africa increased by 5.5% during the current period, which
enabled revenue for SA & Botswana cement to grow by 1.6%.
However, notwithstanding variable cost per tonne being almost flat period-on-period, EBITDA for the period
decreased by 10.4% as fixed costs increased by more than inflation. EBITDA margin decreased from 11.6% in the
prior period to 10.3% in the current period. The South African cement business is the key focus area of the
turnaround actions.
MATERIALS
Volumes in the readymix business continued to decline but cost control actions across both fixed and variable
costs resulted in the materials businesses EBITDA being marginally positive in the current period compared to
marginally negative in the comparable period.
ZIMBABWE
PPC Zimbabwe's cement sales volumes were down 10.9% during the current period when compared to the prior
period. In response to significant increases in electricity tariffs, an average US$ price increase of 4% was
implemented in January 2024, which contained the revenue decrease in rands terms to 4.5%. Despite ongoing
input price pressures, PPC Zimbabwe's EBITDA margin was well managed reducing marginally to 29.0%
compared to 29.8% in the prior period. There were no planned maintenance shutdowns in either the
comparable or the current period. These planned shutdowns occurred subsequently in August 2023 and
August/September 2024 respectively. These shutdowns have an impact on EBITDA margin.
No dividends were declared in the current period compared to US$4 million declared in July 2023. However, a
US$4 million dividend was declared in September 2024.
OUTLOOK
Although interest rates in South Africa have begun to decline and local sentiment is improving, there is still no
clear evidence of large-scale infrastructure or retail developments. Consequently, the overall outlook for the SA
and Botswana group remains subdued. PPC continues to focus its efforts on the turnaround of its cement
businesses to improve profitability and cash generation. Guidance on the size and timing of realising opportunities
will be included in the presentation of the group's performance for the six months ended 30 September 2024,
which is expected to be released on or about 18 November 2024.
In Zimbabwe, imports continue to increase contributing to the reduced volumes of PPC Zimbabwe. Cost
containment has been a focus and will continue. This, together with turnaround initiatives, is expected to have
positive impact on the PPC Zimbabwe earnings.
Dunkeld
30 September 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 30-09-2024 07:30:00
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.
PPC Ltd
Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "company" or "group")
OPERATING UPDATE FOR THE FOUR MONTHS ENDED 31 JULY 2024
GROUP OPERATIONAL PERFORMANCE
The PPC group comprises the South Africa ("SA") and Botswana group, which includes cement, materials and
group services, and Zimbabwe. Following the stabilisation of the balance sheet and the sale of non-strategic assets
in prior years, PPC recently started the challenging process of improving profitability and returns on the group's
assets. The turnaround intervention that has commenced is focused on people, organisational culture, processes,
as well as industrial and supply chain optimisation, to enhance the competitive position of the group in its various
markets. The positive effects of these efforts are expected to become evident in the next financial year.
For the four months ended July 2024 (the "current period") compared to the four months ended July 2023 (the
"comparable period"), group revenue declined 2.1%. Revenue in the SA and Botswana group declined 1.0% and
revenue in Zimbabwe decreased 4.5%.
Zimbabwe contributed 30% to group revenue in the current period compared to the 33% contribution for the
twelve months ended 31 March 2024 ("FY2024"). Cement remains the core business of PPC, contributing 90% of
revenue for the current period while materials contributed the remaining 10%. This remains in line with the
comparable period.
Average cement selling prices increased across the group while cement sales volumes (including Zimbabwe) for
the current period were 5.3% lower than the comparable period. Albeit its much smaller impact on the overall
group, pricing also increased across all three materials businesses but was offset by declines in volumes in the
readymix and ash businesses.
EBITDA margin for the group declined from 15.9% in the comparable period to 13.7% in the current period, with
the comparable period margin positively impacted by the market tailwinds experienced in the first quarter of the
prior year.
Notwithstanding the absolute reduction in EBITDA, net cash generation by the SA and Botswana group, before
financing activities and excluding dividends received from PPC Zimbabwe, improved from R129 million to R192
million. The biggest single contributor was the improvement in working capital mainly in inventory levels.
During the current period an ordinary dividend totalling R213 million was declared and paid. Gross cash balances
for the group increased from R897 million at 31 March 2024 to R969 million at 31 July 2024. Total group debt
remained unchanged since 31 March 2024 at R775 million.
A special dividend totalling R521 million was declared on 28 August 2024 and was settled on 23 September 2024.
No dividend was received from PPC's operations in Zimbabwe in the current period (comparable period: US$4
million), but a dividend of US$4 million was declared by PPC Zimbabwe on 6 September 2023.
SOUTH AFRICA & BOTSWANA CEMENT
Cement sales volumes in South Africa and Botswana decreased by 4.6% in the current period compared to the
comparable period. The average selling price in South Africa increased by 5.5% during the current period, which
enabled revenue for SA & Botswana cement to grow by 1.6%.
However, notwithstanding variable cost per tonne being almost flat period-on-period, EBITDA for the period
decreased by 10.4% as fixed costs increased by more than inflation. EBITDA margin decreased from 11.6% in the
prior period to 10.3% in the current period. The South African cement business is the key focus area of the
turnaround actions.
MATERIALS
Volumes in the readymix business continued to decline but cost control actions across both fixed and variable
costs resulted in the materials businesses EBITDA being marginally positive in the current period compared to
marginally negative in the comparable period.
ZIMBABWE
PPC Zimbabwe's cement sales volumes were down 10.9% during the current period when compared to the prior
period. In response to significant increases in electricity tariffs, an average US$ price increase of 4% was
implemented in January 2024, which contained the revenue decrease in rands terms to 4.5%. Despite ongoing
input price pressures, PPC Zimbabwe's EBITDA margin was well managed reducing marginally to 29.0%
compared to 29.8% in the prior period. There were no planned maintenance shutdowns in either the
comparable or the current period. These planned shutdowns occurred subsequently in August 2023 and
August/September 2024 respectively. These shutdowns have an impact on EBITDA margin.
No dividends were declared in the current period compared to US$4 million declared in July 2023. However, a
US$4 million dividend was declared in September 2024.
OUTLOOK
Although interest rates in South Africa have begun to decline and local sentiment is improving, there is still no
clear evidence of large-scale infrastructure or retail developments. Consequently, the overall outlook for the SA
and Botswana group remains subdued. PPC continues to focus its efforts on the turnaround of its cement
businesses to improve profitability and cash generation. Guidance on the size and timing of realising opportunities
will be included in the presentation of the group's performance for the six months ended 30 September 2024,
which is expected to be released on or about 18 November 2024.
In Zimbabwe, imports continue to increase contributing to the reduced volumes of PPC Zimbabwe. Cost
containment has been a focus and will continue. This, together with turnaround initiatives, is expected to have
positive impact on the PPC Zimbabwe earnings.
Dunkeld
30 September 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 30-09-2024 07:30:00
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.
Results of Annual General Meeting
Results of Annual General Meeting
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
Results of Annual General Meeting ("AGM")
Shareholders of PPC ("Shareholders") are hereby advised that all proposed ordinary and special resolutions
contained in the Notice of the AGM dated 26 July 2024 and tabled at the Company's AGM held on Wednesday,
4 September 2024, were passed by the requisite majority of votes cast by Shareholders, as reported below:
The total number of PPC ordinary shares ("Shares") in issue that could have voted at the AGM was 1 455 767 660
and the total number of Shares present at the AGM in person or by proxy was 1 087 477 510, representing
74,70% of the total Shares that could have voted.
Resolutions proposed Number of Shares Percentage Percentage Percentage Percentage
voted Shares For** Against** Abstained*
voted*
Ordinary Resolutions:
Ordinary Resolution 1 – Election 1 078 892 157 74,11% 100% 0% 0.07%
of M Cardarelli
Ordinary Resolution 2.1 – Re- 1 086 141 948 74,60% 99,99% 0.01% 0,09%
election of K Maphisa
Ordinary Resolution 2.2 – Re- 1 086 141 948 74,60% 99,15% 0,85% 0,09%
election of N Mkhondo
Ordinary Resolution 2.3 – Re- 1 086 141 948 74,60% 99,87% 0,13% 0,09%
election of J Moloketi
Ordinary Resolution 3.1 – 1 086 143 448 74,60% 99,99% 0,01% 0,09%
Appointment to audit
committee – N Gobodo
Ordinary Resolution 3.2 – 1 086 143 448 74,60% 99,12% 0,88% 0,09%
Appointment to audit
committee – N Mkhondo
Ordinary Resolution 3.3 – 1 086 143 448 74,60% 99,88% 0,12% 0,09%
Appointment to audit
committee – MR Thompson
Ordinary Resolution 4 – 1 086 143 448 74,60% 99,99% 0,01% 0,09%
Appointment of external
auditor
PriceWaterhouseCoopers Inc
(PwC)
Ordinary Resolution 5.1 – Non- 1 086 143 373 74,60% 80,30% 19,70% 0,09%
binding advisory vote –
remuneration policy
Ordinary Resolution 5.2 – Non- 1 086 143 373 74,60% 90,18% 9,82% 0,09%
binding advisory vote –
remuneration implementation
report
Ordinary Resolution 6 – 1 086 143 448 74,60% 99,70% 0,30% 0,09%
Authority to implement
resolutions
Special Resolutions:
Special Resolutions 1.1 – 1 086 143 448 74,60% 99,60% 0.40% 0,09%
Financial Assistance – Section
44
Special Resolutions 1.2 – 1 086 143 448 74,60% 88,21% 11,79% 0,09%
Financial Assistance – Section
45
Special Resolution 2.1 – 1 086 143 448 74,60% 99,30% 0,70% 0,09%
Remuneration – Board
chairman
Special Resolution 2.2 – 1 086 143 448 74,60% 99,48% 0,52% 0,09%
Remuneration – Non-executive
directors
Special Resolution 2.3 – Audit 1 086 143 448 74,60% 99,99% 0,01% 0,09%
and risk committee chairman
Special Resolution 2.4 – Audit 1 086 143 448 74,60% 99,99% 0,01% 0,09%
and risk committee – Members
Special Resolution 2.5 – Social 1 086 158 448 74,61% 99,99% 0,01% 0,09%
and ethics committee –
Chairman
Special Resolution 2.6 – Social 1 086 158 448 74,61% 99,99% 0,01% 0,09%
and ethics committee –
Members
Special Resolution 2.7 – 1 086 143 448 74,60% 99,99% 0,01% 0,09%
Rewards and talent committee
– Chairman
Special Resolution 2.8 – 1 086 143 448 74,60% 99,99% 0,01% 0,09%
Rewards and talent committee
– Members
Special Resolution 2.9 – 1 078 629 157 74,09% 99,70% 0,30% 0,09%
Strategy and investment
committee – Chairman
Special Resolution 2.10 – 1 086 143 448 74,60% 97,10% 2,90% 0,09%
Strategy and investment
committee – Members
Special Resolution 2.11 – 1 086 143 448 74,60% 96,00% 4,00% 0,09%
Special meetings – Chairman
Special Resolution 2.12 – 1 086 143 448 74,60% 98,80% 1,20% 0,09%
Special meetings – Members
Special Resolution 3 – General 1 087 208 976 74,68% 98,69% 1,31% 0,02%
authority to repurchase shares
* As a percentage to the total number of votable PPC ordinary shares in issue, being 1 455 767 660
** As a percentage to the total number of shares voted at the AGM, being 1 087 477 510
Dunkeld
4 September 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 04-09-2024 04:15:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
Results of Annual General Meeting ("AGM")
Shareholders of PPC ("Shareholders") are hereby advised that all proposed ordinary and special resolutions
contained in the Notice of the AGM dated 26 July 2024 and tabled at the Company's AGM held on Wednesday,
4 September 2024, were passed by the requisite majority of votes cast by Shareholders, as reported below:
The total number of PPC ordinary shares ("Shares") in issue that could have voted at the AGM was 1 455 767 660
and the total number of Shares present at the AGM in person or by proxy was 1 087 477 510, representing
74,70% of the total Shares that could have voted.
Resolutions proposed Number of Shares Percentage Percentage Percentage Percentage
voted Shares For** Against** Abstained*
voted*
Ordinary Resolutions:
Ordinary Resolution 1 – Election 1 078 892 157 74,11% 100% 0% 0.07%
of M Cardarelli
Ordinary Resolution 2.1 – Re- 1 086 141 948 74,60% 99,99% 0.01% 0,09%
election of K Maphisa
Ordinary Resolution 2.2 – Re- 1 086 141 948 74,60% 99,15% 0,85% 0,09%
election of N Mkhondo
Ordinary Resolution 2.3 – Re- 1 086 141 948 74,60% 99,87% 0,13% 0,09%
election of J Moloketi
Ordinary Resolution 3.1 – 1 086 143 448 74,60% 99,99% 0,01% 0,09%
Appointment to audit
committee – N Gobodo
Ordinary Resolution 3.2 – 1 086 143 448 74,60% 99,12% 0,88% 0,09%
Appointment to audit
committee – N Mkhondo
Ordinary Resolution 3.3 – 1 086 143 448 74,60% 99,88% 0,12% 0,09%
Appointment to audit
committee – MR Thompson
Ordinary Resolution 4 – 1 086 143 448 74,60% 99,99% 0,01% 0,09%
Appointment of external
auditor
PriceWaterhouseCoopers Inc
(PwC)
Ordinary Resolution 5.1 – Non- 1 086 143 373 74,60% 80,30% 19,70% 0,09%
binding advisory vote –
remuneration policy
Ordinary Resolution 5.2 – Non- 1 086 143 373 74,60% 90,18% 9,82% 0,09%
binding advisory vote –
remuneration implementation
report
Ordinary Resolution 6 – 1 086 143 448 74,60% 99,70% 0,30% 0,09%
Authority to implement
resolutions
Special Resolutions:
Special Resolutions 1.1 – 1 086 143 448 74,60% 99,60% 0.40% 0,09%
Financial Assistance – Section
44
Special Resolutions 1.2 – 1 086 143 448 74,60% 88,21% 11,79% 0,09%
Financial Assistance – Section
45
Special Resolution 2.1 – 1 086 143 448 74,60% 99,30% 0,70% 0,09%
Remuneration – Board
chairman
Special Resolution 2.2 – 1 086 143 448 74,60% 99,48% 0,52% 0,09%
Remuneration – Non-executive
directors
Special Resolution 2.3 – Audit 1 086 143 448 74,60% 99,99% 0,01% 0,09%
and risk committee chairman
Special Resolution 2.4 – Audit 1 086 143 448 74,60% 99,99% 0,01% 0,09%
and risk committee – Members
Special Resolution 2.5 – Social 1 086 158 448 74,61% 99,99% 0,01% 0,09%
and ethics committee –
Chairman
Special Resolution 2.6 – Social 1 086 158 448 74,61% 99,99% 0,01% 0,09%
and ethics committee –
Members
Special Resolution 2.7 – 1 086 143 448 74,60% 99,99% 0,01% 0,09%
Rewards and talent committee
– Chairman
Special Resolution 2.8 – 1 086 143 448 74,60% 99,99% 0,01% 0,09%
Rewards and talent committee
– Members
Special Resolution 2.9 – 1 078 629 157 74,09% 99,70% 0,30% 0,09%
Strategy and investment
committee – Chairman
Special Resolution 2.10 – 1 086 143 448 74,60% 97,10% 2,90% 0,09%
Strategy and investment
committee – Members
Special Resolution 2.11 – 1 086 143 448 74,60% 96,00% 4,00% 0,09%
Special meetings – Chairman
Special Resolution 2.12 – 1 086 143 448 74,60% 98,80% 1,20% 0,09%
Special meetings – Members
Special Resolution 3 – General 1 087 208 976 74,68% 98,69% 1,31% 0,02%
authority to repurchase shares
* As a percentage to the total number of votable PPC ordinary shares in issue, being 1 455 767 660
** As a percentage to the total number of shares voted at the AGM, being 1 087 477 510
Dunkeld
4 September 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 04-09-2024 04:15:00
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.
Declaration of Special Cash Dividend
Declaration of Special Cash Dividend
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
DECLARATION OF SPECIAL CASH DIVIDEND
Shareholders are referred to the SENS announcement published on 25 July 2024 regarding the
finalisation of the disposal by the Company of its 51% interest in CIMERWA Plc and are advised that
the board of directors of the Company ("Board") has resolved to declare a special cash dividend,
payable in this second quarter of FY2025, from income reserves of 33.5 cents per PPC ordinary share
("PPC shares"), amounting to R521 million, being 66% of the cash retained by PPC International
Holding Proprietary Limited from the sale of CIMERWA ("Special Dividend"). Taking into account the
Special Dividend that will be received by the PPC subsidiary that repurchased PPC shares in the 2024
financial year, the net cash outlay pursuant to the Special Dividend amounts to R500 million.
The Special Dividend has been approved by the Financial Surveillance Department of the South African
Reserve Bank as required in terms of the Listings Requirements of the JSE Limited.
The gross Special Dividend of 33.5 cents per share from income reserves will be subject to dividend
withholding tax at a rate of 20%. Consequently, a net Special Dividend of 26.8 cents per PPC share
will be distributed to those shareholders who are not exempt from paying dividend tax.
In accordance with the provisions of Strate, the electronic settlement and custody system used by the
JSE Limited, the relevant dates for the Special Dividend are as follows:
2024
Last day to trade "cum Special Dividend" Tuesday, 17 September
First trading day "ex Special Dividend" Wednesday, 18 September
Record date Friday, 20 September
Payment date Monday, 23 September
Those shareholders of the Company who are recorded in the Company's register as at the record date
will be entitled to the Special Dividend.
No share certificates may be dematerialised or rematerialised between Wednesday, 18 September
2024, and Friday, 20 September 2024, both days inclusive.
Payments for certificated shareholders will be transferred electronically to their bank accounts on the
payment date. Shareholders who hold dematerialised shares will have their accounts at their CSDP or
stockbroker credited on Monday, 23 September 2024.
The Company's income tax reference number is 9460015606. The company has 1 553 764 624 PPC
shares in issue at the date of declaration of the Special Dividend.
In compliance with the Companies Act, the Board confirms and has resolved that the Company will
satisfy the solvency and liquidity test immediately after the payment of the Special Dividend.
Dunkeld
28 August 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 28-08-2024 07:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
DECLARATION OF SPECIAL CASH DIVIDEND
Shareholders are referred to the SENS announcement published on 25 July 2024 regarding the
finalisation of the disposal by the Company of its 51% interest in CIMERWA Plc and are advised that
the board of directors of the Company ("Board") has resolved to declare a special cash dividend,
payable in this second quarter of FY2025, from income reserves of 33.5 cents per PPC ordinary share
("PPC shares"), amounting to R521 million, being 66% of the cash retained by PPC International
Holding Proprietary Limited from the sale of CIMERWA ("Special Dividend"). Taking into account the
Special Dividend that will be received by the PPC subsidiary that repurchased PPC shares in the 2024
financial year, the net cash outlay pursuant to the Special Dividend amounts to R500 million.
The Special Dividend has been approved by the Financial Surveillance Department of the South African
Reserve Bank as required in terms of the Listings Requirements of the JSE Limited.
The gross Special Dividend of 33.5 cents per share from income reserves will be subject to dividend
withholding tax at a rate of 20%. Consequently, a net Special Dividend of 26.8 cents per PPC share
will be distributed to those shareholders who are not exempt from paying dividend tax.
In accordance with the provisions of Strate, the electronic settlement and custody system used by the
JSE Limited, the relevant dates for the Special Dividend are as follows:
2024
Last day to trade "cum Special Dividend" Tuesday, 17 September
First trading day "ex Special Dividend" Wednesday, 18 September
Record date Friday, 20 September
Payment date Monday, 23 September
Those shareholders of the Company who are recorded in the Company's register as at the record date
will be entitled to the Special Dividend.
No share certificates may be dematerialised or rematerialised between Wednesday, 18 September
2024, and Friday, 20 September 2024, both days inclusive.
Payments for certificated shareholders will be transferred electronically to their bank accounts on the
payment date. Shareholders who hold dematerialised shares will have their accounts at their CSDP or
stockbroker credited on Monday, 23 September 2024.
The Company's income tax reference number is 9460015606. The company has 1 553 764 624 PPC
shares in issue at the date of declaration of the Special Dividend.
In compliance with the Companies Act, the Board confirms and has resolved that the Company will
satisfy the solvency and liquidity test immediately after the payment of the Special Dividend.
Dunkeld
28 August 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 28-08-2024 07:30:00
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.
2024/07/26
Distribution of Integrated Annual Report Notice of Annual General Meeting and BBBEE compliance certificate
View ArticleDistribution of Integrated Annual Report Notice of Annual General Meeting and BBBEE compliance certificate
Distribution of Integrated Annual Report Notice of Annual General Meeting and BBBEE compliance certificate
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
PUBLICATION OF INTEGRATED ANNUAL REPORT, NOTICE OF ANNUAL GENERAL MEETING AND
AVAILABILITY OF BROAD-BASED BLACK ECONOMIC EMPOWERMENT COMPLIANCE REPORT
Shareholders are advised that the Company's integrated annual report ("IAR") was published and that
the Company's notice of annual general meeting ("AGM") was distributed to shareholders together
with a copy of its audited consolidated annual financial statements for the year ended 31 March 2024
today, 26 July 2024.
Electronic copies of the IAR will be available on the Company´s website, at
https://www.ppc.africa/investors-relations/reports/?t=year-end; and
the notice of AGM will be available on the Company's website, at
https://www.ppc.africa/investors-relations/reports/?t=agm-notices
as from today, 26 July 2024. Copies of the IAR and AGM notice may also be requested from the
company secretary at kevin.ross@ppc.co.za.
NOTICE OF AGM
Notice is hereby given that the 132nd AGM of the shareholders of the Company will be held physically,
in person at the company's offices, First floor, 5 Parks Boulevard, Oxford Parks, Dunkeld,
Johannesburg, 2196, South Africa and virtually through electronic participation, at 12:00 on
Wednesday, 4 September 2024, to consider and, if deemed fit, to pass with or without modification,
all of the ordinary and special resolutions set out in the notice of AGM.
The salient dates and times applicable to the 132nd AGM, are set out below:
2024
Record date to receive the notice of AGM Friday, 19 July
Notice to attend PPC's AGM published on Friday, 26 July
Last day to trade to be recorded in the register to vote at the AGM Tuesday, 27 August
Record date to be eligible to vote at the AGM (voting record date) Friday, 30 August
Last day to lodge forms of proxy for the AGM by 12:00 Monday, 2 September
AGM to be held at 12:00 on Wednesday, 4 September
Results of AGM released via stock exchange news service (SENS) on Wednesday, 4 September
1. The above dates and times are subject to amendment. Any such amendment will be released via
SENS.
2. All times given are local times in South Africa.
3. Any forms of proxy not delivered to the meeting secretaries by 12:00 on Monday, 2 September
2024 may be emailed to proxy@computershare.co.za and will be handed to the chair of the AGM
immediately before the appointed proxy exercises any of the shareholder's rights at the AGM.
AVAILIBITY OF BROAD-BASED BLACK ECONOMIC EMPOWERMENT COMPLIANCE REPORT
In accordance with the Listings Requirements of the JSE Limited, PPC's annual compliance report in
terms of section 13G(2) of the Broad-Based Black Economic Empowerment Act 53 of 2003, read
with the Broad-Based Black Economic Empowerment Amendment Act 46 of 2013, has been
published and is available on the Company's website at
https://www.ppc.africa/sustainability/transformation/
26 July 2024
Dunkeld
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 26-07-2024 01:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
PUBLICATION OF INTEGRATED ANNUAL REPORT, NOTICE OF ANNUAL GENERAL MEETING AND
AVAILABILITY OF BROAD-BASED BLACK ECONOMIC EMPOWERMENT COMPLIANCE REPORT
Shareholders are advised that the Company's integrated annual report ("IAR") was published and that
the Company's notice of annual general meeting ("AGM") was distributed to shareholders together
with a copy of its audited consolidated annual financial statements for the year ended 31 March 2024
today, 26 July 2024.
Electronic copies of the IAR will be available on the Company´s website, at
https://www.ppc.africa/investors-relations/reports/?t=year-end; and
the notice of AGM will be available on the Company's website, at
https://www.ppc.africa/investors-relations/reports/?t=agm-notices
as from today, 26 July 2024. Copies of the IAR and AGM notice may also be requested from the
company secretary at kevin.ross@ppc.co.za.
NOTICE OF AGM
Notice is hereby given that the 132nd AGM of the shareholders of the Company will be held physically,
in person at the company's offices, First floor, 5 Parks Boulevard, Oxford Parks, Dunkeld,
Johannesburg, 2196, South Africa and virtually through electronic participation, at 12:00 on
Wednesday, 4 September 2024, to consider and, if deemed fit, to pass with or without modification,
all of the ordinary and special resolutions set out in the notice of AGM.
The salient dates and times applicable to the 132nd AGM, are set out below:
2024
Record date to receive the notice of AGM Friday, 19 July
Notice to attend PPC's AGM published on Friday, 26 July
Last day to trade to be recorded in the register to vote at the AGM Tuesday, 27 August
Record date to be eligible to vote at the AGM (voting record date) Friday, 30 August
Last day to lodge forms of proxy for the AGM by 12:00 Monday, 2 September
AGM to be held at 12:00 on Wednesday, 4 September
Results of AGM released via stock exchange news service (SENS) on Wednesday, 4 September
1. The above dates and times are subject to amendment. Any such amendment will be released via
SENS.
2. All times given are local times in South Africa.
3. Any forms of proxy not delivered to the meeting secretaries by 12:00 on Monday, 2 September
2024 may be emailed to proxy@computershare.co.za and will be handed to the chair of the AGM
immediately before the appointed proxy exercises any of the shareholder's rights at the AGM.
AVAILIBITY OF BROAD-BASED BLACK ECONOMIC EMPOWERMENT COMPLIANCE REPORT
In accordance with the Listings Requirements of the JSE Limited, PPC's annual compliance report in
terms of section 13G(2) of the Broad-Based Black Economic Empowerment Act 53 of 2003, read
with the Broad-Based Black Economic Empowerment Amendment Act 46 of 2013, has been
published and is available on the Company's website at
https://www.ppc.africa/sustainability/transformation/
26 July 2024
Dunkeld
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 26-07-2024 01:00:00
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.
Disposal of CIMERWA (Rwanda) - COMESA approval
Disposal of CIMERWA (Rwanda) - COMESA approval
PPC Limited
(Incorporated in the Republic of South Africa)
(Registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
DISPOSAL OF CIMERWA (RWANDA) - COMESA APPROVAL
Shareholders are referred to the announcements published on SENS on 17 November 2023 and 25 January
2024, wherein they were advised of the disposal of PPC's 51% interest in CIMERWA Plc to National Cement
Holding Limited for a cash consideration of US$42.5 million ("the Disposal Consideration'). The transaction
closed on 25 January 2024 and the Disposal Consideration was received in full. However, the approval of
the disposal by the Common Market for Eastern and Southern Africa ("COMESA") remained outstanding
as a condition subsequent. The board of directors ("Board") is pleased to report that approval of this
disposal by COMESA has now been received.
As communicated in the release of the results for the year ended 31 March 2024, the use of the net
Disposal Consideration (after transaction costs) will be considered by the Board in terms of its capital
allocation model and optimal gearing levels with the possibility of a special dividend, being considered.
The market will be updated in due course once the Board has reached its determination.
Dunkeld
25 July 2024
JSE Sponsor Corporate Advisor
Questco Corporate Advisory Proprietary Limited Standard Chartered Bank
Legal Advisor
Cliffe Dekker Hofmeyr Inc.
Date: 25-07-2024 01:00:00
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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
DISPOSAL OF CIMERWA (RWANDA) - COMESA APPROVAL
Shareholders are referred to the announcements published on SENS on 17 November 2023 and 25 January
2024, wherein they were advised of the disposal of PPC's 51% interest in CIMERWA Plc to National Cement
Holding Limited for a cash consideration of US$42.5 million ("the Disposal Consideration'). The transaction
closed on 25 January 2024 and the Disposal Consideration was received in full. However, the approval of
the disposal by the Common Market for Eastern and Southern Africa ("COMESA") remained outstanding
as a condition subsequent. The board of directors ("Board") is pleased to report that approval of this
disposal by COMESA has now been received.
As communicated in the release of the results for the year ended 31 March 2024, the use of the net
Disposal Consideration (after transaction costs) will be considered by the Board in terms of its capital
allocation model and optimal gearing levels with the possibility of a special dividend, being considered.
The market will be updated in due course once the Board has reached its determination.
Dunkeld
25 July 2024
JSE Sponsor Corporate Advisor
Questco Corporate Advisory Proprietary Limited Standard Chartered Bank
Legal Advisor
Cliffe Dekker Hofmeyr Inc.
Date: 25-07-2024 01:00:00
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.
2024/06/24
Annual and summarised consolidated financial statements for the year ended 31 March 2024
View ArticleAnnual and summarised consolidated financial statements for the year ended 31 March 2024
Click below to view full PDF article
https://senspdf.jse.co.za/documents/2024/jse/isse/ppc/FY2024.pdf
Annual and summarised consolidated financial statements for the year ended 31 March 2024
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(PPC or the company or the group)
Short-form announcement
Annual and summarised consolidated financial statements for the year ended 31 March 2024
Matias Cardarelli, CEO, said:
"The group has faced sustained underperformance and decreasing profitability over a number of years and as
I reflect on my time at PPC over the past seven months, the comprehensive review of the business revealed
internal gaps that are also clear opportunities.
As we look to unlock internal value and drive profitability, the new Exco and I have had to challenge past
assumptions and leadership decision-making practices. Our problems are pressing, and it is clear that a
meaningful organisational reset and tough decisions are necessary for PPC's sustainable future.
Where we are failing, where we are missing opportunities and what our strengths are, were some of the
questions posed in the design of the turnaround fundamentals. Through a "back to basics" approach and
an appropriate focus on operational efficiency, we are looking into our commercial footprint, internal
business intelligence data and reliability, logistics model, organisational structure and cost and
capital expenditure discipline.
We need to rely on a strong set of values: integrity, sense of urgency, safety, agility and cost
consciousness - values that speak to our aspirations. Moreover, we want to outline behaviours that demonstrate
these values in a 'walk-the-talk' approach.
By refocusing the organisation on its core business, fostering a no-nonsense, get-things-done approach, and
implementing agility in decision-making processes, I am confident that we can overcome the challenges ahead."
SNAPSHOT OF PERFORMANCE FROM CONTINUING OPERATIONS
- Revenue up 20,6% to R10 058 million (FY23: R8 339 million)
- EBITDA up 38,6% to R1 242 million (FY23: R896 million)
- EBITDA margin up 1,6% points to 12,3% (FY23: 10,7%)
- Free cash flow before financing activities and excluding disposal proceeds
from sale of CIMERWA, free cash flow of R260 million (FY23: R124 million)
- Ordinary dividend of 13,7 cents per share
- HEPS of 19,0 cents (FY23: loss of 20,0 cents)
- EPS of 6,0 cents (FY23: loss of 21,0 cents)
GROUP PERFORMANCE - CONTINUING OPERATIONS
Group revenue for the current year rose 20,6% to R10 058 million (FY23: R8 339 million) driven primarily by
a strong performance in PPC's Zimbabwean operation.
The SA and Botswana group cement revenues increased only marginally by 5,2%, driven by price increases and
increased sales of clinker to Zimbabwe, which positively offset the declining cement sales volumes. Revenue
from the materials businesses declined by 6,0% relative to the prior year.
Group cost of sales increased 16,3% to R8 409 million (FY23: R7 231 million). All of the increase in cost
of sales is attributable to Zimbabwe, with the SA and Botswana group's cost of sales declining marginally
by 1,3% (R73 million), driven by lower sales volumes. Group administration and other operating expenditure
increased by 5,5%. Group EBITDA margin therefore improved to 12,3% (FY23:10,7%).
Accordingly, trading profit increased by R502 million to R619 million (FY23: R117 million). Of the R502 million
increase, R395 million was attributable to Zimbabwe.
Depreciation for the group decreased by R155 million to R623 million (FY23: R778 million). The most material
contributors to the decrease were PPC Zimbabwe and SA and Botswana cement. Due to the change in the functional
currency for PPC Zimbabwe from the ZWL to the United States dollars (US$), hyperinflation accounting is no
longer applicable, which resulted in a decrease in property, plant and equipment and an associated decrease in
depreciation by R86 million. SA and Botswana cement also had a decrease in depreciation of R57 million, mainly
due to the extension of useful lives of certain of the assets.
Given the movements in trading profit and depreciation, group EBITDA increased 38,6% to R1 242 million
(FY23: R896 million).
The "fair value and foreign exchange gains movements" changed from a gain of R55 million FY23 to a charge of
R30 million in the current year. In the prior year, US$ debtors were remeasured into ZWL creating significant
exchange gains. This is no longer applicable given the change in functional currency.
The prior year net monetary loss arising from hyperinflation accounting for PPC Zimbabwe of R131 million is no
longer applicable in the current year.
In the prior year, the credit risk adjustment on the intrinsic value of the blocked funds was taken to 100%
resulting in a fair value loss of R32 million. Accordingly, the current period fair value loss is nil.
A significant increase in impairments to R267 million (FY23: R61 million) in the current year relate primarily to
property, plant and equipment as muted market volumes are expected to persist and there is a need for capacity and
cost optimisation going forward. Consequently, it was decided to mothball the Jupiter milling plant (impairment of
R56 million) and Slurry and Dwaalboom swing kilns (impairment of R125 million), although all these assets remain
readily available for re-commissioning should volume demand be there. Given the muted demand experienced by the
aggregates business, which is not expected to change materially in the future, an impairment of R70 million was
taken on the aggregates assets. The prior year impairment related primarily to impairments in the readymix business.
Finance costs increased marginally to R131 million (FY23: R123 million). Although SA and Botswana debt levels were
lower in the current year, interest rate increases resulted in interest paid on borrowing increasing by R6 million.
In addition, a higher level of capitalised leases resulted in an increase in this interest charge of R6 million.
The balance relates to time value of money adjustments of rehabilitation and decommissioning provisions.
Investment income increased to R42 million (FY23: R26 million) on higher cash balances earning a higher interest
rate in South Africa.
During the prior period the group realised a R23 million profit on the disposal of its equity accounted investment
in Habesha, Ethiopia.
Profit before tax increased to R233 million (FY23: loss of R126 million) and profit after tax was R88 million
(FY23: loss of R328 million). In the current year, the effective tax rate was some 62,8%. The three largest
contributors to the effective rate are:
- During the current year, PPC Ltd received dividends from Zimbabwe and RSA Holdings (for purposes of the share
buyback) all of which are non-taxable. This had the effect of increasing the proportion of non -taxable vs taxable
income to 62% (FY23: 40%) resulting in 62% of all expenditure in the holding company not being tax deductible.
In PPC International Holdings, once-off costs related to the disposal of CIMERWA were also not deductible.
Collectively, the above contributed to a 13,4% increase in the effective tax rate.
- Withholding taxes paid on dividends and management fees received mainly from Zimbabwe and Botswana further
increased the effective rate by 10,2%.
- In the 2024 budget, Zimbabwe announced an increase in the corporate tax rate from 24,72% to 25,75%.
The effective date for the change for PPC Zimbabwe is 1 April 2024 and the remeasurement of the deferred tax
liability resulted in a 7,2% increase in tax rate.
The headline earnings per share (HEPS) and earnings per share (EPS) of the continuing operations increased respectively
to 19 cents (FY23: loss of 20 cents) and 6 cents (FY23: loss of 21 cents). The HEPS of the discontinued operations was
8 cents (FY23: 11 cents).
The group's net cash flow before financing activities from continuing operations, and excluding the proceeds received
from the sale of CIMERWA, increased to R260 million (FY23: R124 million).
Total group capital expenditure for the year increased to R400 million (FY23: R368 million). This is some R35 million
below the capital expenditure guidance of R435 million (excluding the Rwandan operation guidance of some R165 million).
The share repurchase programme of R200 million, approved by the board in June 2023, was completed on 13 March 2024.
The total number of shares repurchased were 64,6 million at an average price of R3,08 per share.
The SA and Botswana group bank debt decreased to R779 million (FY23: R930 million) largely due to the scheduled
repayment of R150 million on the amortising term loan. Of the R857 million group cash holdings by continuing operations
(FY23: R264 million), R780 million is held by the SA and Botswana group. PPC International Holdings (PPCIH) received
US$42,5 million from the sale of its stake in CIMERWA. At year-end, R783 million had been lent to the SA and
Botswana group.
Zimbabwe remains debt-free and had unrestricted cash holdings at 31 March 2024 of R40 million (FY23: R118 million).
Approximately 80% of PPC Zimbabwe's cash is held in hard currencies.
Zimbabwe declared and paid a US$4 million dividend in H1 FY24 (H1 FY23: US$5 million) and a US$7 million
dividend in H2: FY24 (H2: FY23 US$5 million) bringing the total dividends paid during the year to US$11 million
(FY23: US$10 million). PPC's share of the dividend (before withholding taxes) amounted to R203 million
(FY23: R155 million).
PPC has amended its SA and Botswana group leverage objective from gross debt to net debt to EBITDA of 1,3 - 1,5 times.
SOUTH AFRICA AND BOTSWANA CEMENT
Cement sales volumes in SA and Botswana were down 5,8% when compared to the prior year (FY23: negative 4,6%),
reflecting lower volumes across our key markets in South Africa while Botswana's volumes were flat. Competition remains
stronger in the inland region where sales volumes have reduced especially since January 2024. Coastal volumes have
dropped at a higher rate than inland due to demand.
While the construction sector in the coastal region continues to be depressed, the main driver of the volume decreases
in this region was in the retail sector, impacted by low demand and aggressive price competition, especially in the
last quarter of the financial year.
Clinker sales from inland to Zimbabwe have more than doubled in the current year supplementing the revenue increase in
SA and Botswana cement business.
PPC continued to increase its cement selling prices on a bi-annual basis and achieved an average selling price increase
of 9,7% when compared to the prior year (FY23: 8,0%). Clinker sales, however, was the main driver of the SA and Botswana
cement revenue increase of 5,2% to R6 080 million (FY23: R5 782 million) given the 5,8% decline in cement volumes.
PPC remains vulnerable to high input cost inflation and local logistics and power challenges, penalising the production
cost per ton. Against the backdrop of a 4,2% decline in overall volumes (cement and clinker), total costs increased by
3,2%, with fixed costs increasing by 2,9%, ameliorated by reduced depreciation and the absorption of fixed costs in
inventory build-up during the current year.
EBITDA increased 1,5% to R684 million (FY23: R674 million) with a margin of 11,3% (FY23: 11,7%) as price increases were
not sufficient to offset cost increases. Key turnaround initiatives are to focus on contribution margin per customer,
operational efficiencies to contain variable costs and absolute fixed costs/administration costs reduction.
AGGREGATES, READYMIX AND ASH
Readymix volumes decreased by 18,2%, and aggregates volumes decreased by 8,8% compared to the prior year. Fly ash
sales volumes increased by 7,2%. Overall, revenue for the materials division decreased by 6,0% to R1 031 million
(FY23: R1 097 million), due to the largest contributor, readymix, continuing to experience a significant reduction in
demand offset in part by an increase in the average selling price. The divisional EBITDA increased to R43 million,
but this was shielded by a positive once-off non-cash item of R55 million being the installation of a new conveyor
belt and offloading station by a third party as part of its rehabilitation obligations under the original sale and
purchase agreement. Excluding this once-off item, the materials division EBITDA for FY24 would have been a negative
R12 million (FY23: negative R65 million) mainly reflecting an improvement in the readymix division.
ZIMBABWE
PPC's operation in Zimbabwe delivered a strong recovery in the current year albeit off a low base following the
extended maintenance shutdown of the kiln in the first half of the prior year. Zimbabwe won back the market share
it had lost with demand across both residential construction and government funded infrastructure projects.
Cement sales volumes increased 36,6% when compared to the prior year (FY23: down 15,8%) although growth has softened
as the effect of the stronger base in the H2 FY23 starts coming through.
Revenue for the year increased by 90,9% in rand terms to R3 346 million (FY23: R1 753 million) on strong cement volumes
and price increases. The full year impact of the 5% selling price increase that was effected in August 2022 (prior year)
and the 4% sales price increase effected in January 2024 also contributed to the revenue increase. EBITDA margins reduced
marginally to 20,2% (FY23: 20,8%) for the full year, but significantly off the half year margins of 24,6% due to high
electricity costs resulting from a gradual tariff increase of ~76% from October 2023. Clinker purchases also continued in
H2 FY24 and the full cost of purchased clinker was 169% higher than the prior year.
Dividends of US$11 million were paid during the year (FY23: US$10 million).
DISCONTINUED OPERATIONS - RWANDA (CIMERWA)
PPC sold its 51% shareholding in CIMERWA on 25 January 2024 for a total selling price of US$42,5 million. PPC received
the full selling price and paid the capital gains tax in Rwanda of US$372 000 in February 2024. No further capital
gains tax is payable in South Africa. The approval by the Common Market for Eastern and Southern Africa (COMESA) was
anticipated within 120 days of the filing on 8 February 2024, but COMESA have requested and been granted an extension
to 12 July 2024. At the date of the disposal, the total net asset value attributable to PPC was R612 million and the
consideration received was R809 million resulting in a profit on disposal of R197 million.
DIVIDEND
Given the significant de-leveraging of the SA and Botswana group in the current year, the board has resolved to declare
an ordinary dividend to shareholders. The board has also approved an amendment to the existing distribution policy
which has the effect of calculating a distribution in two distinct parts being:
a. a distribution in an amount that would result in the target leverage range for the SA and Botswana group being
net debt at or below 1,3x - 1,5x the SA and Botswana EBITDA, before dividends from Zimbabwe; plus
b. a distribution of an amount up to the gross dividend received by PPC from Zimbabwe.
CASH DIVIDEND
Shareholders are advised that, based on the above, the board resolved on 21 June 2024 to declare a gross cash dividend
for the year ended 31 March 2024 of R213 million. (FY23: share repurchase of R200 million). This equates to 13,7 cents
per share for each of the shares in issue, subject to the applicable tax levied in terms of the Income Tax Act
(Act number 58 of 1962), as amended (dividend withholding tax).
The cash dividend has been declared from retained earnings. The dividend withholding tax is 20% and a net cash dividend
of 10,96 cents per share will be paid to those shareholders who are not exempt from dividend withholding tax.
In accordance with the provisions of Strate, the electronic settlement and custody system used by the JSE Limited, the
relevant dates for the cash dividend are as follows:
2024
Last day to trade "cum cash dividend" Tuesday, 9 July
Shares commence trading "ex cash dividend" Wednesday, 10 July
Record date Friday, 12 July
Payment date Monday, 15 July
Those shareholders of the company who are recorded in the company's register as at the record date will be entitled
to the cash dividend.
Share certificates may not be dematerialised between Wednesday, 10 July and Friday, 12 July 2024, both days inclusive.
Payments for certificated shareholders will be transferred electronically to their bank accounts or the payment date.
Shareholders who hold dematerialised shares will have their accounts at their CSDP or stockbroker credited on
Monday, 15 July 2024.
Taking into account the dividend that will be received by the subsidiary that repurchased the PPC Ltd shares in the
current financial year, the net cash outlay pursuant to the cash dividend amounts to R204 million.
The sale of CIMERWA is subject to approval (as a condition subsequent) by COMESA, which approval has not yet been
received. Prudently, the board resolved to retain the R783 million in the group until such time as approval is
received, whereupon a special dividend to shareholders will be considered.
The company's income tax reference number is 9460015606. The company has 1,553,764,624 shares in issue as at the
date of the declaration of the cash dividend.
In compliance with the Companies Act, the directors confirm and have resolved that the company will satisfy the
solvency and liquidity tests immediately after the payment of the cash dividend.
STRATEGIC PLAN AND OUTLOOK
The group has faced sustained underperformance and decreasing profitability over a number of years. A comprehensive
review of the business has identified internal gaps that are also clear opportunities.The new executive team has had
to challenge past assumptions and decision-making practices. In order to create a sustainable future for PPC, these
challenges must be addressed with a sense of urgency.
Agility in management decision-making has been hindered by the availability and accuracy of relevant data and gaps
in internal business process. The previous complex organisational structure created a silo mentality and embedded
a culture of lower accountability which was not conducive to delivering results
To unlock internal value and drive profitability, the immediate need for strategic personnel changes was identified
and implemented. In FY25, the focus will be on cost awareness throughout the organisation, robust capital expenditure
analyses and the creation of reliable internal business intelligence to support better quality decisions.
The strategic plan will focus on working capital management, a contribution margin approach, improving industrial
performance, enhancing the go-to-market and logistics operating model.
Externally, demand is anticipated to remain subdued, although there are signs of growth in some regions. To navigate
high input costs, cement companies must focus on optimising their operations for enhanced efficiency and profitability.
Industry enforcement of quality standards will be crucial for sustainability of the cement sector.
While the road to turnaround, transformation and growth may be challenging, we are committed to creating a sustainable
future for PPC. Guided by principles of integrity, urgency, safety, agility, and cost consciousness, we believe that
with a clear vision and a strong team, we can increase profitability, deliver returns to our investors, and enhance our
competitive position in the market.
Chairman Chief executive officer Chief financial officer
PJ Moleketi SM Cardarelli B Berlin
24 June 2024
Sandton
SHORT-FORM ANNOUNCEMENT
This short-form announcement of the audited consolidated annual financial statements for the year ended 31 March 2024
(2024 AFS) is extracted from the financial information in the 2024 AFS and the Summarised 2024 AFS and does not contain
full or complete details. This short-form announcement is the responsibility of the board of directors of PPC.
The information in this short form announcement has been extracted from audited information but is not itself audited.
Any investment decisions by investors and/ shareholders should be based on a consideration of the 2024 AFS and
Summarised 2024 AFS, as a whole, as published on SENS and the issuer's website as follows:
Summarised 2024 AFS
PPC's website: https://www.ppc.africa/investors-relations/reports?t=final-resultsreports&y=2024 and
2024 AFS
JSE's website: https://senspdf.jse.co.za/documents/2024/jse/isse/PPC/FY2024.pdf
AUDIT OPINION
The 2024 AFS were audited by PwC, who expressed an unmodified audit opinion in terms of the International Standards
on Auditing. A copy of the auditor's report on the 2024 AFS is available on the following link:
https://www.ppc.africa/investors-relations/reports/?t=final-results-reports.
The auditor's report does not necessarily report on all of the information contained in this announcement, including
the outlook. 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 the auditor's report together with the accompanying financial
information from PPC's website or registered office.
Copies of the 2024 AFS, the Summarised AFS and the auditors unmodified audit opinion thereon are also available
for inspection at the company's registered office (by appointment) and may be requested from the Company Secretary
Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours. (A live and recorded video webcast of the
results presentation will be held today at 10:00 am and can be accessed via this link:
https://www.corpcam.com/PPC24062024)
Registered office: First Floor, 5 Parks Boulevard, Oxford Parks, Dunkeld, Johannesburg, 2196, South Africa
(PO Box 787416, Sandton, 2146, South Africa)
DIRECTORS:
PJ Moleketi (chair), SM Cardarelli* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo, CH Naude,
D Smith, MR Thompson,
*Argentinian **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
www.ppc.africa
Date: 24-06-2024 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.
https://senspdf.jse.co.za/documents/2024/jse/isse/ppc/FY2024.pdf
Annual and summarised consolidated financial statements for the year ended 31 March 2024
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(PPC or the company or the group)
Short-form announcement
Annual and summarised consolidated financial statements for the year ended 31 March 2024
Matias Cardarelli, CEO, said:
"The group has faced sustained underperformance and decreasing profitability over a number of years and as
I reflect on my time at PPC over the past seven months, the comprehensive review of the business revealed
internal gaps that are also clear opportunities.
As we look to unlock internal value and drive profitability, the new Exco and I have had to challenge past
assumptions and leadership decision-making practices. Our problems are pressing, and it is clear that a
meaningful organisational reset and tough decisions are necessary for PPC's sustainable future.
Where we are failing, where we are missing opportunities and what our strengths are, were some of the
questions posed in the design of the turnaround fundamentals. Through a "back to basics" approach and
an appropriate focus on operational efficiency, we are looking into our commercial footprint, internal
business intelligence data and reliability, logistics model, organisational structure and cost and
capital expenditure discipline.
We need to rely on a strong set of values: integrity, sense of urgency, safety, agility and cost
consciousness - values that speak to our aspirations. Moreover, we want to outline behaviours that demonstrate
these values in a 'walk-the-talk' approach.
By refocusing the organisation on its core business, fostering a no-nonsense, get-things-done approach, and
implementing agility in decision-making processes, I am confident that we can overcome the challenges ahead."
SNAPSHOT OF PERFORMANCE FROM CONTINUING OPERATIONS
- Revenue up 20,6% to R10 058 million (FY23: R8 339 million)
- EBITDA up 38,6% to R1 242 million (FY23: R896 million)
- EBITDA margin up 1,6% points to 12,3% (FY23: 10,7%)
- Free cash flow before financing activities and excluding disposal proceeds
from sale of CIMERWA, free cash flow of R260 million (FY23: R124 million)
- Ordinary dividend of 13,7 cents per share
- HEPS of 19,0 cents (FY23: loss of 20,0 cents)
- EPS of 6,0 cents (FY23: loss of 21,0 cents)
GROUP PERFORMANCE - CONTINUING OPERATIONS
Group revenue for the current year rose 20,6% to R10 058 million (FY23: R8 339 million) driven primarily by
a strong performance in PPC's Zimbabwean operation.
The SA and Botswana group cement revenues increased only marginally by 5,2%, driven by price increases and
increased sales of clinker to Zimbabwe, which positively offset the declining cement sales volumes. Revenue
from the materials businesses declined by 6,0% relative to the prior year.
Group cost of sales increased 16,3% to R8 409 million (FY23: R7 231 million). All of the increase in cost
of sales is attributable to Zimbabwe, with the SA and Botswana group's cost of sales declining marginally
by 1,3% (R73 million), driven by lower sales volumes. Group administration and other operating expenditure
increased by 5,5%. Group EBITDA margin therefore improved to 12,3% (FY23:10,7%).
Accordingly, trading profit increased by R502 million to R619 million (FY23: R117 million). Of the R502 million
increase, R395 million was attributable to Zimbabwe.
Depreciation for the group decreased by R155 million to R623 million (FY23: R778 million). The most material
contributors to the decrease were PPC Zimbabwe and SA and Botswana cement. Due to the change in the functional
currency for PPC Zimbabwe from the ZWL to the United States dollars (US$), hyperinflation accounting is no
longer applicable, which resulted in a decrease in property, plant and equipment and an associated decrease in
depreciation by R86 million. SA and Botswana cement also had a decrease in depreciation of R57 million, mainly
due to the extension of useful lives of certain of the assets.
Given the movements in trading profit and depreciation, group EBITDA increased 38,6% to R1 242 million
(FY23: R896 million).
The "fair value and foreign exchange gains movements" changed from a gain of R55 million FY23 to a charge of
R30 million in the current year. In the prior year, US$ debtors were remeasured into ZWL creating significant
exchange gains. This is no longer applicable given the change in functional currency.
The prior year net monetary loss arising from hyperinflation accounting for PPC Zimbabwe of R131 million is no
longer applicable in the current year.
In the prior year, the credit risk adjustment on the intrinsic value of the blocked funds was taken to 100%
resulting in a fair value loss of R32 million. Accordingly, the current period fair value loss is nil.
A significant increase in impairments to R267 million (FY23: R61 million) in the current year relate primarily to
property, plant and equipment as muted market volumes are expected to persist and there is a need for capacity and
cost optimisation going forward. Consequently, it was decided to mothball the Jupiter milling plant (impairment of
R56 million) and Slurry and Dwaalboom swing kilns (impairment of R125 million), although all these assets remain
readily available for re-commissioning should volume demand be there. Given the muted demand experienced by the
aggregates business, which is not expected to change materially in the future, an impairment of R70 million was
taken on the aggregates assets. The prior year impairment related primarily to impairments in the readymix business.
Finance costs increased marginally to R131 million (FY23: R123 million). Although SA and Botswana debt levels were
lower in the current year, interest rate increases resulted in interest paid on borrowing increasing by R6 million.
In addition, a higher level of capitalised leases resulted in an increase in this interest charge of R6 million.
The balance relates to time value of money adjustments of rehabilitation and decommissioning provisions.
Investment income increased to R42 million (FY23: R26 million) on higher cash balances earning a higher interest
rate in South Africa.
During the prior period the group realised a R23 million profit on the disposal of its equity accounted investment
in Habesha, Ethiopia.
Profit before tax increased to R233 million (FY23: loss of R126 million) and profit after tax was R88 million
(FY23: loss of R328 million). In the current year, the effective tax rate was some 62,8%. The three largest
contributors to the effective rate are:
- During the current year, PPC Ltd received dividends from Zimbabwe and RSA Holdings (for purposes of the share
buyback) all of which are non-taxable. This had the effect of increasing the proportion of non -taxable vs taxable
income to 62% (FY23: 40%) resulting in 62% of all expenditure in the holding company not being tax deductible.
In PPC International Holdings, once-off costs related to the disposal of CIMERWA were also not deductible.
Collectively, the above contributed to a 13,4% increase in the effective tax rate.
- Withholding taxes paid on dividends and management fees received mainly from Zimbabwe and Botswana further
increased the effective rate by 10,2%.
- In the 2024 budget, Zimbabwe announced an increase in the corporate tax rate from 24,72% to 25,75%.
The effective date for the change for PPC Zimbabwe is 1 April 2024 and the remeasurement of the deferred tax
liability resulted in a 7,2% increase in tax rate.
The headline earnings per share (HEPS) and earnings per share (EPS) of the continuing operations increased respectively
to 19 cents (FY23: loss of 20 cents) and 6 cents (FY23: loss of 21 cents). The HEPS of the discontinued operations was
8 cents (FY23: 11 cents).
The group's net cash flow before financing activities from continuing operations, and excluding the proceeds received
from the sale of CIMERWA, increased to R260 million (FY23: R124 million).
Total group capital expenditure for the year increased to R400 million (FY23: R368 million). This is some R35 million
below the capital expenditure guidance of R435 million (excluding the Rwandan operation guidance of some R165 million).
The share repurchase programme of R200 million, approved by the board in June 2023, was completed on 13 March 2024.
The total number of shares repurchased were 64,6 million at an average price of R3,08 per share.
The SA and Botswana group bank debt decreased to R779 million (FY23: R930 million) largely due to the scheduled
repayment of R150 million on the amortising term loan. Of the R857 million group cash holdings by continuing operations
(FY23: R264 million), R780 million is held by the SA and Botswana group. PPC International Holdings (PPCIH) received
US$42,5 million from the sale of its stake in CIMERWA. At year-end, R783 million had been lent to the SA and
Botswana group.
Zimbabwe remains debt-free and had unrestricted cash holdings at 31 March 2024 of R40 million (FY23: R118 million).
Approximately 80% of PPC Zimbabwe's cash is held in hard currencies.
Zimbabwe declared and paid a US$4 million dividend in H1 FY24 (H1 FY23: US$5 million) and a US$7 million
dividend in H2: FY24 (H2: FY23 US$5 million) bringing the total dividends paid during the year to US$11 million
(FY23: US$10 million). PPC's share of the dividend (before withholding taxes) amounted to R203 million
(FY23: R155 million).
PPC has amended its SA and Botswana group leverage objective from gross debt to net debt to EBITDA of 1,3 - 1,5 times.
SOUTH AFRICA AND BOTSWANA CEMENT
Cement sales volumes in SA and Botswana were down 5,8% when compared to the prior year (FY23: negative 4,6%),
reflecting lower volumes across our key markets in South Africa while Botswana's volumes were flat. Competition remains
stronger in the inland region where sales volumes have reduced especially since January 2024. Coastal volumes have
dropped at a higher rate than inland due to demand.
While the construction sector in the coastal region continues to be depressed, the main driver of the volume decreases
in this region was in the retail sector, impacted by low demand and aggressive price competition, especially in the
last quarter of the financial year.
Clinker sales from inland to Zimbabwe have more than doubled in the current year supplementing the revenue increase in
SA and Botswana cement business.
PPC continued to increase its cement selling prices on a bi-annual basis and achieved an average selling price increase
of 9,7% when compared to the prior year (FY23: 8,0%). Clinker sales, however, was the main driver of the SA and Botswana
cement revenue increase of 5,2% to R6 080 million (FY23: R5 782 million) given the 5,8% decline in cement volumes.
PPC remains vulnerable to high input cost inflation and local logistics and power challenges, penalising the production
cost per ton. Against the backdrop of a 4,2% decline in overall volumes (cement and clinker), total costs increased by
3,2%, with fixed costs increasing by 2,9%, ameliorated by reduced depreciation and the absorption of fixed costs in
inventory build-up during the current year.
EBITDA increased 1,5% to R684 million (FY23: R674 million) with a margin of 11,3% (FY23: 11,7%) as price increases were
not sufficient to offset cost increases. Key turnaround initiatives are to focus on contribution margin per customer,
operational efficiencies to contain variable costs and absolute fixed costs/administration costs reduction.
AGGREGATES, READYMIX AND ASH
Readymix volumes decreased by 18,2%, and aggregates volumes decreased by 8,8% compared to the prior year. Fly ash
sales volumes increased by 7,2%. Overall, revenue for the materials division decreased by 6,0% to R1 031 million
(FY23: R1 097 million), due to the largest contributor, readymix, continuing to experience a significant reduction in
demand offset in part by an increase in the average selling price. The divisional EBITDA increased to R43 million,
but this was shielded by a positive once-off non-cash item of R55 million being the installation of a new conveyor
belt and offloading station by a third party as part of its rehabilitation obligations under the original sale and
purchase agreement. Excluding this once-off item, the materials division EBITDA for FY24 would have been a negative
R12 million (FY23: negative R65 million) mainly reflecting an improvement in the readymix division.
ZIMBABWE
PPC's operation in Zimbabwe delivered a strong recovery in the current year albeit off a low base following the
extended maintenance shutdown of the kiln in the first half of the prior year. Zimbabwe won back the market share
it had lost with demand across both residential construction and government funded infrastructure projects.
Cement sales volumes increased 36,6% when compared to the prior year (FY23: down 15,8%) although growth has softened
as the effect of the stronger base in the H2 FY23 starts coming through.
Revenue for the year increased by 90,9% in rand terms to R3 346 million (FY23: R1 753 million) on strong cement volumes
and price increases. The full year impact of the 5% selling price increase that was effected in August 2022 (prior year)
and the 4% sales price increase effected in January 2024 also contributed to the revenue increase. EBITDA margins reduced
marginally to 20,2% (FY23: 20,8%) for the full year, but significantly off the half year margins of 24,6% due to high
electricity costs resulting from a gradual tariff increase of ~76% from October 2023. Clinker purchases also continued in
H2 FY24 and the full cost of purchased clinker was 169% higher than the prior year.
Dividends of US$11 million were paid during the year (FY23: US$10 million).
DISCONTINUED OPERATIONS - RWANDA (CIMERWA)
PPC sold its 51% shareholding in CIMERWA on 25 January 2024 for a total selling price of US$42,5 million. PPC received
the full selling price and paid the capital gains tax in Rwanda of US$372 000 in February 2024. No further capital
gains tax is payable in South Africa. The approval by the Common Market for Eastern and Southern Africa (COMESA) was
anticipated within 120 days of the filing on 8 February 2024, but COMESA have requested and been granted an extension
to 12 July 2024. At the date of the disposal, the total net asset value attributable to PPC was R612 million and the
consideration received was R809 million resulting in a profit on disposal of R197 million.
DIVIDEND
Given the significant de-leveraging of the SA and Botswana group in the current year, the board has resolved to declare
an ordinary dividend to shareholders. The board has also approved an amendment to the existing distribution policy
which has the effect of calculating a distribution in two distinct parts being:
a. a distribution in an amount that would result in the target leverage range for the SA and Botswana group being
net debt at or below 1,3x - 1,5x the SA and Botswana EBITDA, before dividends from Zimbabwe; plus
b. a distribution of an amount up to the gross dividend received by PPC from Zimbabwe.
CASH DIVIDEND
Shareholders are advised that, based on the above, the board resolved on 21 June 2024 to declare a gross cash dividend
for the year ended 31 March 2024 of R213 million. (FY23: share repurchase of R200 million). This equates to 13,7 cents
per share for each of the shares in issue, subject to the applicable tax levied in terms of the Income Tax Act
(Act number 58 of 1962), as amended (dividend withholding tax).
The cash dividend has been declared from retained earnings. The dividend withholding tax is 20% and a net cash dividend
of 10,96 cents per share will be paid to those shareholders who are not exempt from dividend withholding tax.
In accordance with the provisions of Strate, the electronic settlement and custody system used by the JSE Limited, the
relevant dates for the cash dividend are as follows:
2024
Last day to trade "cum cash dividend" Tuesday, 9 July
Shares commence trading "ex cash dividend" Wednesday, 10 July
Record date Friday, 12 July
Payment date Monday, 15 July
Those shareholders of the company who are recorded in the company's register as at the record date will be entitled
to the cash dividend.
Share certificates may not be dematerialised between Wednesday, 10 July and Friday, 12 July 2024, both days inclusive.
Payments for certificated shareholders will be transferred electronically to their bank accounts or the payment date.
Shareholders who hold dematerialised shares will have their accounts at their CSDP or stockbroker credited on
Monday, 15 July 2024.
Taking into account the dividend that will be received by the subsidiary that repurchased the PPC Ltd shares in the
current financial year, the net cash outlay pursuant to the cash dividend amounts to R204 million.
The sale of CIMERWA is subject to approval (as a condition subsequent) by COMESA, which approval has not yet been
received. Prudently, the board resolved to retain the R783 million in the group until such time as approval is
received, whereupon a special dividend to shareholders will be considered.
The company's income tax reference number is 9460015606. The company has 1,553,764,624 shares in issue as at the
date of the declaration of the cash dividend.
In compliance with the Companies Act, the directors confirm and have resolved that the company will satisfy the
solvency and liquidity tests immediately after the payment of the cash dividend.
STRATEGIC PLAN AND OUTLOOK
The group has faced sustained underperformance and decreasing profitability over a number of years. A comprehensive
review of the business has identified internal gaps that are also clear opportunities.The new executive team has had
to challenge past assumptions and decision-making practices. In order to create a sustainable future for PPC, these
challenges must be addressed with a sense of urgency.
Agility in management decision-making has been hindered by the availability and accuracy of relevant data and gaps
in internal business process. The previous complex organisational structure created a silo mentality and embedded
a culture of lower accountability which was not conducive to delivering results
To unlock internal value and drive profitability, the immediate need for strategic personnel changes was identified
and implemented. In FY25, the focus will be on cost awareness throughout the organisation, robust capital expenditure
analyses and the creation of reliable internal business intelligence to support better quality decisions.
The strategic plan will focus on working capital management, a contribution margin approach, improving industrial
performance, enhancing the go-to-market and logistics operating model.
Externally, demand is anticipated to remain subdued, although there are signs of growth in some regions. To navigate
high input costs, cement companies must focus on optimising their operations for enhanced efficiency and profitability.
Industry enforcement of quality standards will be crucial for sustainability of the cement sector.
While the road to turnaround, transformation and growth may be challenging, we are committed to creating a sustainable
future for PPC. Guided by principles of integrity, urgency, safety, agility, and cost consciousness, we believe that
with a clear vision and a strong team, we can increase profitability, deliver returns to our investors, and enhance our
competitive position in the market.
Chairman Chief executive officer Chief financial officer
PJ Moleketi SM Cardarelli B Berlin
24 June 2024
Sandton
SHORT-FORM ANNOUNCEMENT
This short-form announcement of the audited consolidated annual financial statements for the year ended 31 March 2024
(2024 AFS) is extracted from the financial information in the 2024 AFS and the Summarised 2024 AFS and does not contain
full or complete details. This short-form announcement is the responsibility of the board of directors of PPC.
The information in this short form announcement has been extracted from audited information but is not itself audited.
Any investment decisions by investors and/ shareholders should be based on a consideration of the 2024 AFS and
Summarised 2024 AFS, as a whole, as published on SENS and the issuer's website as follows:
Summarised 2024 AFS
PPC's website: https://www.ppc.africa/investors-relations/reports?t=final-resultsreports&y=2024 and
2024 AFS
JSE's website: https://senspdf.jse.co.za/documents/2024/jse/isse/PPC/FY2024.pdf
AUDIT OPINION
The 2024 AFS were audited by PwC, who expressed an unmodified audit opinion in terms of the International Standards
on Auditing. A copy of the auditor's report on the 2024 AFS is available on the following link:
https://www.ppc.africa/investors-relations/reports/?t=final-results-reports.
The auditor's report does not necessarily report on all of the information contained in this announcement, including
the outlook. 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 the auditor's report together with the accompanying financial
information from PPC's website or registered office.
Copies of the 2024 AFS, the Summarised AFS and the auditors unmodified audit opinion thereon are also available
for inspection at the company's registered office (by appointment) and may be requested from the Company Secretary
Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours. (A live and recorded video webcast of the
results presentation will be held today at 10:00 am and can be accessed via this link:
https://www.corpcam.com/PPC24062024)
Registered office: First Floor, 5 Parks Boulevard, Oxford Parks, Dunkeld, Johannesburg, 2196, South Africa
(PO Box 787416, Sandton, 2146, South Africa)
DIRECTORS:
PJ Moleketi (chair), SM Cardarelli* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo, CH Naude,
D Smith, MR Thompson,
*Argentinian **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
www.ppc.africa
Date: 24-06-2024 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.
Trading Statement for the Year Ended 31 March 2024
Trading Statement for the Year Ended 31 March 2024
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
("PPC" or "the group")
TRADING STATEMENT FOR THE YEAR ENDED 31 MARCH 2024
PPC is currently finalising its results for the year ended 31 March 2024 ("the current period").
Shareholders are advised that PPC is satisfied that a reasonable degree of certainty exists that the
expected earnings per share ("EPS") and headline earning per share ("HEPS") for the current period will
differ by at least 20% from that for the previous corresponding period, being the year ended 31 March 2023
("the prior period") and that a trading statement is required in terms of the JSE Limited Listings
Requirements.
This difference is primarily due to the current period EPS and HEPS numbers being impacted by a strong
performance by PPC Zimbabwe in the current period compared to the prior period in which it had an
extended kiln shutdown. In addition, in the current period, PPC Zimbabwe changed its functional currency
from the Zimbabwean dollar to the United States dollar and this also had a positive impact given the
elimination of net monetary losses of R131 million arising in the prior period due to hyperinflation
accounting.
As reported in the operational update on 27 March 2024, due to the disposal by PPC of its 51%
shareholding in CIMERWA on 25 January 2024, CIMERWA's results for the period 1 April 2023 to 25
January 2024 will be shown as discontinued operations. The prior period comparative figures have
accordingly been represented to exclude CIMERWA's results and to disclose its results separately as
discontinued operations.
The following EPS and HEPS for the group are expected:
Current period Prior period
Expectation range Restated*
Group EPS (cents) 1 25.0 to 30.0 (43)
Group HEPS (cents) 1 27.0 to 28.5 (9)
Continuing operations EPS (cents) 1 4.0 to 8.0 (21)
Continuing operations HEPS (cents) 1 16.5 to 20.0 (20)
1 Brackets denote losses per share
* The prior period figures have been re-presented to disclose discontinued operations separately
The financial information on which this trading statement is based is the responsibility of the directors of
PPC and has not been reviewed or reported on by the group's independent external auditor. Full details of
the groups' performance will be contained in the group's audited consolidated financial statements for the
year ended 31 March 2024, which are expected to be released on or about 24 June 2024.
Dunkeld
12 June 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 12-06-2024 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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
("PPC" or "the group")
TRADING STATEMENT FOR THE YEAR ENDED 31 MARCH 2024
PPC is currently finalising its results for the year ended 31 March 2024 ("the current period").
Shareholders are advised that PPC is satisfied that a reasonable degree of certainty exists that the
expected earnings per share ("EPS") and headline earning per share ("HEPS") for the current period will
differ by at least 20% from that for the previous corresponding period, being the year ended 31 March 2023
("the prior period") and that a trading statement is required in terms of the JSE Limited Listings
Requirements.
This difference is primarily due to the current period EPS and HEPS numbers being impacted by a strong
performance by PPC Zimbabwe in the current period compared to the prior period in which it had an
extended kiln shutdown. In addition, in the current period, PPC Zimbabwe changed its functional currency
from the Zimbabwean dollar to the United States dollar and this also had a positive impact given the
elimination of net monetary losses of R131 million arising in the prior period due to hyperinflation
accounting.
As reported in the operational update on 27 March 2024, due to the disposal by PPC of its 51%
shareholding in CIMERWA on 25 January 2024, CIMERWA's results for the period 1 April 2023 to 25
January 2024 will be shown as discontinued operations. The prior period comparative figures have
accordingly been represented to exclude CIMERWA's results and to disclose its results separately as
discontinued operations.
The following EPS and HEPS for the group are expected:
Current period Prior period
Expectation range Restated*
Group EPS (cents) 1 25.0 to 30.0 (43)
Group HEPS (cents) 1 27.0 to 28.5 (9)
Continuing operations EPS (cents) 1 4.0 to 8.0 (21)
Continuing operations HEPS (cents) 1 16.5 to 20.0 (20)
1 Brackets denote losses per share
* The prior period figures have been re-presented to disclose discontinued operations separately
The financial information on which this trading statement is based is the responsibility of the directors of
PPC and has not been reviewed or reported on by the group's independent external auditor. Full details of
the groups' performance will be contained in the group's audited consolidated financial statements for the
year ended 31 March 2024, which are expected to be released on or about 24 June 2024.
Dunkeld
12 June 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 12-06-2024 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.
Operational Update for the Ten Months ended 31 January 2024
Operational Update for the Ten Months ended 31 January 2024
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the group")
OPERATIONAL UPDATE FOR THE TEN MONTHS ENDED 31 JANUARY 2024
GROUP PERFORMANCE
Further to the announcement published on SENS on 25 January 2024 regarding the disposal by PPC
of its 51% shareholding in its Rwanda business (CIMERWA), all the numbers in this operational update
exclude CIMERWA for ease of comparison, as CIMERWA's results in the current financial year, to the
date of deconsolidation, will be shown as discontinued operations.
Group revenue increased by 27.6% for the ten-month period ended 31 January 2024 (the "current
period"), when compared to the 10 months ended 31 January 2023 (the "comparable period"). This
was driven mainly by continued strong growth in PPC's Zimbabwe operations relative to the low base
in the comparable period. This is higher than the 22.1% revenue growth to the end of September 2023
(the "half year") compared to the six months ended 30 September 2022 (the "previous half")
calculated on a consistent basis to exclude CIMERWA. Revenue growth in the South African and
Botswana cement business continued to be driven by price increases, positively offsetting the
declining sales volumes as experienced in the half year.
Group EBITDA margins improved to 13.6% in the current period from 9.9% in the comparable period.
However, this is lower than the half-year EBITDA margin (excluding CIMERWA) of 15.3%. The decrease
in margins compared to the half year is due to lower South Africa cement margins, a weak
performance in the materials business, one-off costs at a group level as well as marginally lower
EBITDA margins in the Zimbabwean operations.
Capital expenditure for the group remains behind the guidance of R600 million for the full financial
year mainly due to the delay of the fly ash project (expansion capex) in Zimbabwe. This is a timing
issue due to a delay in accessing the power plant to complete the plant design and commercial
contract. This is now expected to commence early in FY25 as opposed to FY24 thereby delaying the
benefits of this expansion project for approximately one year. The South African and Botswana free
cashflow, being net cash inflow before financing activities and excluding dividends from Zimbabwe,
increased to R364 million in the current period from R242 million in the comparable period. The share
repurchase program reached the R200 million approved level during the first half of March 2024.
Following the receipt of the proceeds from the disposal of CIMERWA, South Africa and Botswana
turned cash positive during the current period and at 31 January 2024, were in a net cash position of
R280 million. Zimbabwe continues to remain debt free and held R95 million in unencumbered cash at
31 January 2024. The Group's targeted gross leverage of 1.3 to 1.5 times the South African and
Botswana operations EBITDA (including dividends from Zimbabwe) remains unchanged.
SOUTH AFRICA AND BOTSWANA CEMENT
In the current period, cement sales volumes in South Africa and Botswana decreased by 4% compared
to the comparable period. The decline for the first half of the year was 5%. Sales volumes in the coastal
region experienced a sharper decline than in the inland region, mainly due to a weaker retail market
and a lack of infrastructure projects in the area. Price increases implemented in July 2023 and January
2024 offset the decline in volumes with the South Africa and Botswana cement business increasing
revenue by 6% in the current period compared to 5% at the half-year. EBITDA margins increased
marginally from 10,7% to 11.4% when comparing the current period to the comparable period but are
below the 12.6% reported at the half year. The performance in the South Africa and Botswana cement
market has deteriorated since the end of the current period.
MATERIALS
The materials business comprises three distinctly different businesses, namely readymix concrete,
aggregates and fly ash. The readymix concrete business has been impacted by a lack of construction
projects in the regions in which it operates, which negatively impacted volumes. The aggregates
business realised lower volumes in the depressed localised market it serves from its two quarries. The
fly ash business continued to benefit from increased volumes due to its diverse customer base.
The materials business saw a notable improvement in negative EBITDA, shifting from a negative R60
million in the comparable period to R7 million in the current period. This change is significant
considering the positive R14 million EBITDA contribution at the half-year mark. Despite price
increases, the negative EBITDA was due to the substantial decrease in volumes across the readymix
concrete and aggregates businesses, which declined even further compared to the half-year. The fly
ash business EBITDA continued to show strong growth in the current period.
ZIMBABWE
Cement volumes continued to show strong growth, increasing 41% in the current period, albeit slightly
lower than the half-year growth of 44% due to the impact of the stronger base in the comparable
period. Growth continues to be as strong as a result of both residential construction and government
funded infrastructure projects, constrained imports and a low base in the comparable period due to
the extended shutdown.
EBITDA margins were 22% in the current period, an improvement from 18% in the comparable period
but lower than 25% at the half-year. This was mainly due to the high cost of clinker imports as local
production could not meet demand levels.
PPC Zimbabwe declared dividends of US$4 million in July 2023 and US$7million in November 2023.
The next dividend declaration is expected in July 2024.
RWANDA (CIMERWA)
PPC sold its 51% shareholding in CIMERWA on 25 January 2024 for a total selling price of US$42.5
million. PPC received the full selling price and paid capital gains tax in Rwanda of US$474 000 in
February 2024. It is anticipated that no further capital gains taxes will be payable in South Africa. The
approval by the Common Market for Eastern and Southern Africa (COMESA) Competition Commission,
which was not required before implementation of the transaction, is still anticipated to be received
within 120 days of the effective date.
OUTLOOK
The short-term outlook for the South African and Botswana markets remains subdued. The short-
term outlook for PPC Zimbabwe remains positive.
The reorganised and strengthened executive committee (Exco) team announced on 18 January 2024
now has the right blend of global and local cement industry experience, institutional and technical
knowledge and a renewed energy to drive the needed improvements at PPC's operational level. The
Exco is conducting a comprehensive review to ensure that PPC is agile, well-managed and resilient in
a challenging South African macroeconomic context. The key focus areas include:
i. the optimisation of structure, processes and controls;
ii. the refocusing of the business on contribution margin through an assessment of the South
African businesses commercial footprint; and
iii. the reduction in fixed operational and overhead costs.
The above will require improvements to the internal management reporting systems to better support
its commercial and operational decision making. The board has targeted achieving a sustainable return
on capital for its South African and Botswana business in the medium-term.
PPC intends to increase engagement with regulators and other key market stakeholders as a
commitment to developing a sustainable cement industry in South Africa through creating a level
playing field among local, regional and international competitors on key issues such as imported
cement and low quality standard products.
With the South African gross debt to EBITDA ratio expected to be well below the stated optimal level,
PPC intends to continue to return cash to shareholders through dividends or the implementation of a
share repurchase program in the absence of any value enhancing corporate activity.
CHANGES TO FUNCTIONS OF DIRECTOR
In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited, the board of
directors of PPC ("the Board") wishes to inform shareholders of the following changes to the functions
of a Board member.
Mr Matias Cardarelli has been appointed as a member of the Company's Social, Ethics and
Transformation Committee and its Strategy and Investment Committee with effect from 12 March
2024.
Following his appointment the Social, Ethics and Transformation Committee will comprise of the
following members:
Nonkululeko Gobodo (chairperson) – independent non-executive director
Jabu Moleketi – independent chairman of PPC
Bjarne Moltke Hansen – independent non-executive director
Kunyalala Maphisa – independent non-executive director
Matias Cardarelli – chief executive officer
The Strategy and Investment Committee will comprise of the following members:
Charles Naude (Chairman) – independent non-executive director
Bjarne Moltke Hansen – independent non-executive director
Dan Smith – independent non-executive director
Kunyalala Maphisa – independent non-executive director
Mark Thompson – independent non-executive director
Matias Cardarelli - chief executive officer
Dunkeld
27 March 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Aprio Credence
Esme Arendse
Mobile: +27 82 694 7643
Date: 27-03-2024 08:55:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the group")
OPERATIONAL UPDATE FOR THE TEN MONTHS ENDED 31 JANUARY 2024
GROUP PERFORMANCE
Further to the announcement published on SENS on 25 January 2024 regarding the disposal by PPC
of its 51% shareholding in its Rwanda business (CIMERWA), all the numbers in this operational update
exclude CIMERWA for ease of comparison, as CIMERWA's results in the current financial year, to the
date of deconsolidation, will be shown as discontinued operations.
Group revenue increased by 27.6% for the ten-month period ended 31 January 2024 (the "current
period"), when compared to the 10 months ended 31 January 2023 (the "comparable period"). This
was driven mainly by continued strong growth in PPC's Zimbabwe operations relative to the low base
in the comparable period. This is higher than the 22.1% revenue growth to the end of September 2023
(the "half year") compared to the six months ended 30 September 2022 (the "previous half")
calculated on a consistent basis to exclude CIMERWA. Revenue growth in the South African and
Botswana cement business continued to be driven by price increases, positively offsetting the
declining sales volumes as experienced in the half year.
Group EBITDA margins improved to 13.6% in the current period from 9.9% in the comparable period.
However, this is lower than the half-year EBITDA margin (excluding CIMERWA) of 15.3%. The decrease
in margins compared to the half year is due to lower South Africa cement margins, a weak
performance in the materials business, one-off costs at a group level as well as marginally lower
EBITDA margins in the Zimbabwean operations.
Capital expenditure for the group remains behind the guidance of R600 million for the full financial
year mainly due to the delay of the fly ash project (expansion capex) in Zimbabwe. This is a timing
issue due to a delay in accessing the power plant to complete the plant design and commercial
contract. This is now expected to commence early in FY25 as opposed to FY24 thereby delaying the
benefits of this expansion project for approximately one year. The South African and Botswana free
cashflow, being net cash inflow before financing activities and excluding dividends from Zimbabwe,
increased to R364 million in the current period from R242 million in the comparable period. The share
repurchase program reached the R200 million approved level during the first half of March 2024.
Following the receipt of the proceeds from the disposal of CIMERWA, South Africa and Botswana
turned cash positive during the current period and at 31 January 2024, were in a net cash position of
R280 million. Zimbabwe continues to remain debt free and held R95 million in unencumbered cash at
31 January 2024. The Group's targeted gross leverage of 1.3 to 1.5 times the South African and
Botswana operations EBITDA (including dividends from Zimbabwe) remains unchanged.
SOUTH AFRICA AND BOTSWANA CEMENT
In the current period, cement sales volumes in South Africa and Botswana decreased by 4% compared
to the comparable period. The decline for the first half of the year was 5%. Sales volumes in the coastal
region experienced a sharper decline than in the inland region, mainly due to a weaker retail market
and a lack of infrastructure projects in the area. Price increases implemented in July 2023 and January
2024 offset the decline in volumes with the South Africa and Botswana cement business increasing
revenue by 6% in the current period compared to 5% at the half-year. EBITDA margins increased
marginally from 10,7% to 11.4% when comparing the current period to the comparable period but are
below the 12.6% reported at the half year. The performance in the South Africa and Botswana cement
market has deteriorated since the end of the current period.
MATERIALS
The materials business comprises three distinctly different businesses, namely readymix concrete,
aggregates and fly ash. The readymix concrete business has been impacted by a lack of construction
projects in the regions in which it operates, which negatively impacted volumes. The aggregates
business realised lower volumes in the depressed localised market it serves from its two quarries. The
fly ash business continued to benefit from increased volumes due to its diverse customer base.
The materials business saw a notable improvement in negative EBITDA, shifting from a negative R60
million in the comparable period to R7 million in the current period. This change is significant
considering the positive R14 million EBITDA contribution at the half-year mark. Despite price
increases, the negative EBITDA was due to the substantial decrease in volumes across the readymix
concrete and aggregates businesses, which declined even further compared to the half-year. The fly
ash business EBITDA continued to show strong growth in the current period.
ZIMBABWE
Cement volumes continued to show strong growth, increasing 41% in the current period, albeit slightly
lower than the half-year growth of 44% due to the impact of the stronger base in the comparable
period. Growth continues to be as strong as a result of both residential construction and government
funded infrastructure projects, constrained imports and a low base in the comparable period due to
the extended shutdown.
EBITDA margins were 22% in the current period, an improvement from 18% in the comparable period
but lower than 25% at the half-year. This was mainly due to the high cost of clinker imports as local
production could not meet demand levels.
PPC Zimbabwe declared dividends of US$4 million in July 2023 and US$7million in November 2023.
The next dividend declaration is expected in July 2024.
RWANDA (CIMERWA)
PPC sold its 51% shareholding in CIMERWA on 25 January 2024 for a total selling price of US$42.5
million. PPC received the full selling price and paid capital gains tax in Rwanda of US$474 000 in
February 2024. It is anticipated that no further capital gains taxes will be payable in South Africa. The
approval by the Common Market for Eastern and Southern Africa (COMESA) Competition Commission,
which was not required before implementation of the transaction, is still anticipated to be received
within 120 days of the effective date.
OUTLOOK
The short-term outlook for the South African and Botswana markets remains subdued. The short-
term outlook for PPC Zimbabwe remains positive.
The reorganised and strengthened executive committee (Exco) team announced on 18 January 2024
now has the right blend of global and local cement industry experience, institutional and technical
knowledge and a renewed energy to drive the needed improvements at PPC's operational level. The
Exco is conducting a comprehensive review to ensure that PPC is agile, well-managed and resilient in
a challenging South African macroeconomic context. The key focus areas include:
i. the optimisation of structure, processes and controls;
ii. the refocusing of the business on contribution margin through an assessment of the South
African businesses commercial footprint; and
iii. the reduction in fixed operational and overhead costs.
The above will require improvements to the internal management reporting systems to better support
its commercial and operational decision making. The board has targeted achieving a sustainable return
on capital for its South African and Botswana business in the medium-term.
PPC intends to increase engagement with regulators and other key market stakeholders as a
commitment to developing a sustainable cement industry in South Africa through creating a level
playing field among local, regional and international competitors on key issues such as imported
cement and low quality standard products.
With the South African gross debt to EBITDA ratio expected to be well below the stated optimal level,
PPC intends to continue to return cash to shareholders through dividends or the implementation of a
share repurchase program in the absence of any value enhancing corporate activity.
CHANGES TO FUNCTIONS OF DIRECTOR
In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited, the board of
directors of PPC ("the Board") wishes to inform shareholders of the following changes to the functions
of a Board member.
Mr Matias Cardarelli has been appointed as a member of the Company's Social, Ethics and
Transformation Committee and its Strategy and Investment Committee with effect from 12 March
2024.
Following his appointment the Social, Ethics and Transformation Committee will comprise of the
following members:
Nonkululeko Gobodo (chairperson) – independent non-executive director
Jabu Moleketi – independent chairman of PPC
Bjarne Moltke Hansen – independent non-executive director
Kunyalala Maphisa – independent non-executive director
Matias Cardarelli – chief executive officer
The Strategy and Investment Committee will comprise of the following members:
Charles Naude (Chairman) – independent non-executive director
Bjarne Moltke Hansen – independent non-executive director
Dan Smith – independent non-executive director
Kunyalala Maphisa – independent non-executive director
Mark Thompson – independent non-executive director
Matias Cardarelli - chief executive officer
Dunkeld
27 March 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Aprio Credence
Esme Arendse
Mobile: +27 82 694 7643
Date: 27-03-2024 08:55:00
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.
General Repurchase of Shares
General Repurchase of Shares
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
GENERAL REPURCHASE OF SHARES
At the annual general meeting of PPC held on 6 September 2023 ("AGM"), shareholders, by special
resolution, granted a general authority to the board of directors ("the Board") of the Company and its
subsidiaries ("the Group") for the Company and/or its subsidiaries to repurchase up to 10% of the issued
ordinary share capital of the Company, on the terms and subject to the conditions specified in the notice of
AGM.
Shareholders are hereby advised that, during the period commencing on 6 September 2023 to 29 January
2024, the Company's wholly-owned subsidiary, PPC GPCO South Africa Proprietary Limited, repurchased an
aggregate of 46 612 939 ordinary shares, representing 3% of the issued ordinary share capital of the
Company as at the date on which the authority to repurchase the ordinary shares was granted. The
aforementioned ordinary shares were repurchased for an aggregate value of R143 853 790.55 (including
transaction costs), funded out of the Group's available cash resources, as follows:
Aggregate Highest price Lowest price
number of per ordinary per ordinary Aggregate value
Date of ordinary shares share share (excluding
repurchases repurchased repurchased repurchased transaction costs)
6 September
2023 to 29 46 612 939 R4.00 R2.54 R143 325 983.63
January 2024
The repurchases were made in terms of the general authority granted by shareholders at the AGM and were
effected through the order book operated by the JSE Limited trading system without any prior understanding
or arrangement between the Company or subsidiary and the counterparties. All of the requirements for the
general repurchase of ordinary shares in terms of paragraph 5.72 of the JSE Limited Listings Requirements,
have been complied with.
During the prohibited period prior to publication of its financial year 2024 interim results, which were
published on 20 November 2023, the Group repurchased 10 105 498 of the Company's shares at an average
cost of R2.94 per share, totalling R29 740 122.48 (excluding transaction costs), pursuant to a repurchase
programme which was put in place prior to the commencement of the prohibited period in accordance with
the Listings Requirements.
The Group may repurchase a further 108 763 524 ordinary shares up to a total of 155 376 462 (10%) of the
ordinary shares in issue as at the date on which the authority was granted, in terms of the current general
authority, which is valid until the Company's next annual general meeting.
As at the date of this announcement, the Group held 89 347 464 ordinary shares as treasury shares, including
the repurchased shares referred to in this announcement. Treasury shares comprise 56 522 752 shares held
by a subsidiary of the Company and 32 824 712 shares held by structured entities, which are consolidated
for IFRS purposes only.
As all the shares have been repurchased by a wholly-owned subsidiary of the Company, such shares will not
be cancelled but will remain listed and held as treasury shares. As a result, the Group's cash balances
decreased by R143 853 790.55 (including transaction costs of R527 806.92) for the period from the date of
the AGM to the date of this announcement and the repurchases will have the effect of reducing the number
of shares in issue used for purposes of the earnings per share and headline earnings per share calculations
by an additional 46 612 939 shares (being the shares repurchased since the AGM to date), which will be
weighted according to the dates of the various repurchases.
OPINION OF THE BOARD
The Board has considered the effect of the repurchases and is of the opinion that, for a period of 12 months
following the date of this announcement:
• the Company and the Group will be able, in the ordinary course of business, to repay their
debts;
• the consolidated assets of the Company and the Group will be in excess of the consolidated
liabilities of the Company and the Group;
• the Company's and the Group's share capital and reserves will be adequate for the ordinary
business purposes of the Company and the Group; and
• the Company and the Group will have sufficient working capital for ordinary business purposes.
Dunkeld
31 January 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 31-01-2024 07:30:00
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
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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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
GENERAL REPURCHASE OF SHARES
At the annual general meeting of PPC held on 6 September 2023 ("AGM"), shareholders, by special
resolution, granted a general authority to the board of directors ("the Board") of the Company and its
subsidiaries ("the Group") for the Company and/or its subsidiaries to repurchase up to 10% of the issued
ordinary share capital of the Company, on the terms and subject to the conditions specified in the notice of
AGM.
Shareholders are hereby advised that, during the period commencing on 6 September 2023 to 29 January
2024, the Company's wholly-owned subsidiary, PPC GPCO South Africa Proprietary Limited, repurchased an
aggregate of 46 612 939 ordinary shares, representing 3% of the issued ordinary share capital of the
Company as at the date on which the authority to repurchase the ordinary shares was granted. The
aforementioned ordinary shares were repurchased for an aggregate value of R143 853 790.55 (including
transaction costs), funded out of the Group's available cash resources, as follows:
Aggregate Highest price Lowest price
number of per ordinary per ordinary Aggregate value
Date of ordinary shares share share (excluding
repurchases repurchased repurchased repurchased transaction costs)
6 September
2023 to 29 46 612 939 R4.00 R2.54 R143 325 983.63
January 2024
The repurchases were made in terms of the general authority granted by shareholders at the AGM and were
effected through the order book operated by the JSE Limited trading system without any prior understanding
or arrangement between the Company or subsidiary and the counterparties. All of the requirements for the
general repurchase of ordinary shares in terms of paragraph 5.72 of the JSE Limited Listings Requirements,
have been complied with.
During the prohibited period prior to publication of its financial year 2024 interim results, which were
published on 20 November 2023, the Group repurchased 10 105 498 of the Company's shares at an average
cost of R2.94 per share, totalling R29 740 122.48 (excluding transaction costs), pursuant to a repurchase
programme which was put in place prior to the commencement of the prohibited period in accordance with
the Listings Requirements.
The Group may repurchase a further 108 763 524 ordinary shares up to a total of 155 376 462 (10%) of the
ordinary shares in issue as at the date on which the authority was granted, in terms of the current general
authority, which is valid until the Company's next annual general meeting.
As at the date of this announcement, the Group held 89 347 464 ordinary shares as treasury shares, including
the repurchased shares referred to in this announcement. Treasury shares comprise 56 522 752 shares held
by a subsidiary of the Company and 32 824 712 shares held by structured entities, which are consolidated
for IFRS purposes only.
As all the shares have been repurchased by a wholly-owned subsidiary of the Company, such shares will not
be cancelled but will remain listed and held as treasury shares. As a result, the Group's cash balances
decreased by R143 853 790.55 (including transaction costs of R527 806.92) for the period from the date of
the AGM to the date of this announcement and the repurchases will have the effect of reducing the number
of shares in issue used for purposes of the earnings per share and headline earnings per share calculations
by an additional 46 612 939 shares (being the shares repurchased since the AGM to date), which will be
weighted according to the dates of the various repurchases.
OPINION OF THE BOARD
The Board has considered the effect of the repurchases and is of the opinion that, for a period of 12 months
following the date of this announcement:
• the Company and the Group will be able, in the ordinary course of business, to repay their
debts;
• the consolidated assets of the Company and the Group will be in excess of the consolidated
liabilities of the Company and the Group;
• the Company's and the Group's share capital and reserves will be adequate for the ordinary
business purposes of the Company and the Group; and
• the Company and the Group will have sufficient working capital for ordinary business purposes.
Dunkeld
31 January 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 31-01-2024 07:30:00
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.
PPC Successfully Concludes Disposal of its 51% Interest in CIMERWA (Rwanda)
PPC Successfully Concludes Disposal of its 51% Interest in CIMERWA (Rwanda)
PPC Limited
(Incorporated in the Republic of South Africa)
(Registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
PPC SUCCESSFULLY CONCLUDES DISPOSAL OF ITS 51% INTEREST IN CIMERWA (RWANDA)
PPC shareholders are referred to the announcement published on the Stock Exchange News Service of
the JSE Limited on 17 November 2023 and are advised that the Company's wholly-owned subsidiary, PPC
International Holdings Proprietary Limited, has successfully concluded the disposal of its entire
shareholding in CIMERWA PLC ("CIMERWA") to National Cement Holding Limited for a cash consideration
of US$42.5 million ("Disposal"). All conditions precedent to the Disposal have been fulfilled and the
proceeds received. Approval by the Common Market for Eastern and Southern Africa (COMESA)
Competition Commission, which is not required before implementation of the Disposal is anticipated to
be received within 120 days. Consequently, the effective date of the Disposal is 25 January 2024.
The PPC Group is net cash positive following receipt of the proceeds of the Disposal.
PPC CEO, Matias Cardarelli, said "I am pleased with the timely completion of the sale of our stake in
CIMERWA. CIMERWA is now part of a regional group that is better placed to support its growth. The
Disposal allows us to focus on our core southern African markets where we see opportunities to drive
improved profitability and secure a more sustainable return on capital.
Dunkeld
25 January 2024
JSE Sponsor Corporate Advisor
Questco Corporate Advisory Proprietary Limited Standard Chartered Bank
Legal Advisor
Cliffe Dekker Hofmeyr Inc.
Date: 25-01-2024 12:31:00
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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
PPC SUCCESSFULLY CONCLUDES DISPOSAL OF ITS 51% INTEREST IN CIMERWA (RWANDA)
PPC shareholders are referred to the announcement published on the Stock Exchange News Service of
the JSE Limited on 17 November 2023 and are advised that the Company's wholly-owned subsidiary, PPC
International Holdings Proprietary Limited, has successfully concluded the disposal of its entire
shareholding in CIMERWA PLC ("CIMERWA") to National Cement Holding Limited for a cash consideration
of US$42.5 million ("Disposal"). All conditions precedent to the Disposal have been fulfilled and the
proceeds received. Approval by the Common Market for Eastern and Southern Africa (COMESA)
Competition Commission, which is not required before implementation of the Disposal is anticipated to
be received within 120 days. Consequently, the effective date of the Disposal is 25 January 2024.
The PPC Group is net cash positive following receipt of the proceeds of the Disposal.
PPC CEO, Matias Cardarelli, said "I am pleased with the timely completion of the sale of our stake in
CIMERWA. CIMERWA is now part of a regional group that is better placed to support its growth. The
Disposal allows us to focus on our core southern African markets where we see opportunities to drive
improved profitability and secure a more sustainable return on capital.
Dunkeld
25 January 2024
JSE Sponsor Corporate Advisor
Questco Corporate Advisory Proprietary Limited Standard Chartered Bank
Legal Advisor
Cliffe Dekker Hofmeyr Inc.
Date: 25-01-2024 12:31:00
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.
Changes to Executive Leadership Team - Voluntary Announcement
Changes to Executive Leadership Team - Voluntary Announcement
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC")
CHANGES TO EXECUTIVE LEADERSHIP TEAM – VOLUNTARY ANNOUNCEMENT
Following the appointment of its new CEO, Matias Cardarelli, with effect from 1 December 2023, the
board of directors of PPC (Board) has approved a substantially reorganised and strengthened
Executive Committee (EXCO) in order to drive improved profitability and a sustainable return on
capital for its South African business.
The new EXCO includes several new roles aimed at enhancing operational excellence and strategic
planning. This includes the appointment of a: Chief Operations Officer (COO) to focus on increasing
efficiencies, productivity and cost reduction initiatives; a Chief Strategy Officer (CSO) who will work
closely with the Chief Financial Officer (CFO), Brenda Berlin, to implement various profit improvement
initiatives, and a Chief Revenue Officer (CRO). The CRO role will be assumed by Mokate Ramafoko,
who will be responsible for creating a single revenue engine and boosting the company's top line.
Ndima Rawana will continue in his role as Chief Human Resources Officer (CHRO) to oversee the
building of a high performing team, and Kevin Ross will join the EXCO as Chief Legal and Compliance
Officer and Company Secretary.
Consequently, PPC is pleased to announce the recruitment of two new executives, Ernesto Acosta and
Paulo Marques, who bring extensive global and South African cement industry experience. Ernesto
Acosta, who will be taking on the role of COO, has spent 25 years with global cement company,
Intercement, running different cement plants and operations in many regions and countries, most
recently as its COO in South Africa. Paulo Marques will serve as CSO, having spent almost 20 years in
various planning, control, strategy and finance positions in two international cement companies,
Cimpor and Intercement, most recently as CFO in South Africa.
PPC CEO, Matias Cardarelli, said: "This is a transformational time for us at PPC. Building the new EXCO
team is the first step in establishing the right organisational structure. At an EXCO level, I believe we
now have the right blend of global and local cement industry experience, institutional knowledge and
energy, to drive PPC's growth, improve profitability and enhance returns. Accountability, ownership,
agility and focus on results, are going to be the distinctive characteristics of the new team".
The PPC EXCO is therefore now comprised of Matias Cardarelli (CEO), Brenda Berlin (CFO), Ernesto
Acosta (COO), Paulo Marques (CSO), Mokate Ramafoko (CRO), Ndima Rawana (CHRO) and Kevin Ross
(Chief Legal Officer and Company Secretary). There are no new appointments to the Board as a
consequence of these changes.
Dunkeld
18 January 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 18-01-2024 09:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC")
CHANGES TO EXECUTIVE LEADERSHIP TEAM – VOLUNTARY ANNOUNCEMENT
Following the appointment of its new CEO, Matias Cardarelli, with effect from 1 December 2023, the
board of directors of PPC (Board) has approved a substantially reorganised and strengthened
Executive Committee (EXCO) in order to drive improved profitability and a sustainable return on
capital for its South African business.
The new EXCO includes several new roles aimed at enhancing operational excellence and strategic
planning. This includes the appointment of a: Chief Operations Officer (COO) to focus on increasing
efficiencies, productivity and cost reduction initiatives; a Chief Strategy Officer (CSO) who will work
closely with the Chief Financial Officer (CFO), Brenda Berlin, to implement various profit improvement
initiatives, and a Chief Revenue Officer (CRO). The CRO role will be assumed by Mokate Ramafoko,
who will be responsible for creating a single revenue engine and boosting the company's top line.
Ndima Rawana will continue in his role as Chief Human Resources Officer (CHRO) to oversee the
building of a high performing team, and Kevin Ross will join the EXCO as Chief Legal and Compliance
Officer and Company Secretary.
Consequently, PPC is pleased to announce the recruitment of two new executives, Ernesto Acosta and
Paulo Marques, who bring extensive global and South African cement industry experience. Ernesto
Acosta, who will be taking on the role of COO, has spent 25 years with global cement company,
Intercement, running different cement plants and operations in many regions and countries, most
recently as its COO in South Africa. Paulo Marques will serve as CSO, having spent almost 20 years in
various planning, control, strategy and finance positions in two international cement companies,
Cimpor and Intercement, most recently as CFO in South Africa.
PPC CEO, Matias Cardarelli, said: "This is a transformational time for us at PPC. Building the new EXCO
team is the first step in establishing the right organisational structure. At an EXCO level, I believe we
now have the right blend of global and local cement industry experience, institutional knowledge and
energy, to drive PPC's growth, improve profitability and enhance returns. Accountability, ownership,
agility and focus on results, are going to be the distinctive characteristics of the new team".
The PPC EXCO is therefore now comprised of Matias Cardarelli (CEO), Brenda Berlin (CFO), Ernesto
Acosta (COO), Paulo Marques (CSO), Mokate Ramafoko (CRO), Ndima Rawana (CHRO) and Kevin Ross
(Chief Legal Officer and Company Secretary). There are no new appointments to the Board as a
consequence of these changes.
Dunkeld
18 January 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 18-01-2024 09:00:00
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.
2024/01/02
Vesting of Shares to former Chief Executive Officer - Long Term Incentive Plan
View ArticleVesting of Shares to former Chief Executive Officer - Long Term Incentive Plan
Vesting of Shares to former Chief Executive Officer - Long Term Incentive Plan
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or "Group")
VESTING OF SHARES TO FORMER CHIEF EXECUTIVE OFFICER : LONG TERM INCENTIVE PLAN
The following information is disclosed in respect of the vesting of PPC ordinary shares ("PPC Shares")
to a former director of the Company in terms of the rules of the Company's Long Term Incentive Plan
("LTIP").
Name of Director: Roland Corstiaan van Wijnen
Designation: Director
Nature of transaction: Accelerated vesting of PPC Shares in terms of LTIP
Nature of trade: Off-market
Number of PPC Shares: 6 202 576
Vesting date: 27 December 2023
Price per PPC Share on vesting date: R3.79
Total Value: R23 507 763
Nature of interest: Direct beneficial
Clearance obtained: Not applicable
In terms of the LTIP PPC Shares were awarded to, and held as restricted shares for, Mr Roland van
Wijnen, the former CEO of PPC, in respect of the performance periods ending 31 March 2021 and 31
March 2022, subject to certain performance criteria and a 3 year vesting period.
The performance criteria having been met by Mr van Wijnen during his tenure, PPC's Reward and
Talent Committee has resolved to accelerate the vesting date of these PPC Shares in terms of the rules
of the LTIP to 27 December 2023. Mr van Wijnen's contract of employment terminated on 31
December 2023. No clearance to trade in respect of the vesting is required.
Dunkeld
2 January 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 02-01-2024 12:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or "Group")
VESTING OF SHARES TO FORMER CHIEF EXECUTIVE OFFICER : LONG TERM INCENTIVE PLAN
The following information is disclosed in respect of the vesting of PPC ordinary shares ("PPC Shares")
to a former director of the Company in terms of the rules of the Company's Long Term Incentive Plan
("LTIP").
Name of Director: Roland Corstiaan van Wijnen
Designation: Director
Nature of transaction: Accelerated vesting of PPC Shares in terms of LTIP
Nature of trade: Off-market
Number of PPC Shares: 6 202 576
Vesting date: 27 December 2023
Price per PPC Share on vesting date: R3.79
Total Value: R23 507 763
Nature of interest: Direct beneficial
Clearance obtained: Not applicable
In terms of the LTIP PPC Shares were awarded to, and held as restricted shares for, Mr Roland van
Wijnen, the former CEO of PPC, in respect of the performance periods ending 31 March 2021 and 31
March 2022, subject to certain performance criteria and a 3 year vesting period.
The performance criteria having been met by Mr van Wijnen during his tenure, PPC's Reward and
Talent Committee has resolved to accelerate the vesting date of these PPC Shares in terms of the rules
of the LTIP to 27 December 2023. Mr van Wijnen's contract of employment terminated on 31
December 2023. No clearance to trade in respect of the vesting is required.
Dunkeld
2 January 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 02-01-2024 12:00:00
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.
2023
Dealing in Shares pursuant to Long-Term Incentive Plan
Dealing in Shares pursuant to Long-Term Incentive Plan
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
DEALING IN SHARES PURSUANT TO LONG-TERM INCENTIVE PLAN
In accordance with paragraph 3.63 of the JSE Listings Requirements, shareholders are advised that Mr
Matias Cardarelli has been awarded PPC ordinary shares ("Shares") pursuant to the Company's long-
term incentive plan ("LTIP") as a sign-on award and in terms of his negotiated fixed term service
agreement, with no performance conditions, which award Mr Cardelli has accepted, as follows:
Director: Mr SM Cardarelli
Designation: Chief Executive Officer
Acceptance date: 23 November 2023
Vesting date: Awarded shares will vest in three equal instalments on the first,
second and third anniversary of the acceptance date.
Number of securities: 7 455 255
Value of Shares awarded: R27 823 276.57
Nature of transaction: Off-market award of shares in terms of LTIP
Class of securities: Ordinary shares
Nature of interest: Direct Beneficial
Clearance to deal obtained: Yes
The value of the Shares awarded in terms of the LTIP is the actual cost (including transaction costs)
incurred between 20 November 2023 and 22 November 2023 for the specific purpose of settling the
Company's obligation in this regard.
Dunkeld
28 November 2023
Sponsor:
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 28-11-2023 09:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
DEALING IN SHARES PURSUANT TO LONG-TERM INCENTIVE PLAN
In accordance with paragraph 3.63 of the JSE Listings Requirements, shareholders are advised that Mr
Matias Cardarelli has been awarded PPC ordinary shares ("Shares") pursuant to the Company's long-
term incentive plan ("LTIP") as a sign-on award and in terms of his negotiated fixed term service
agreement, with no performance conditions, which award Mr Cardelli has accepted, as follows:
Director: Mr SM Cardarelli
Designation: Chief Executive Officer
Acceptance date: 23 November 2023
Vesting date: Awarded shares will vest in three equal instalments on the first,
second and third anniversary of the acceptance date.
Number of securities: 7 455 255
Value of Shares awarded: R27 823 276.57
Nature of transaction: Off-market award of shares in terms of LTIP
Class of securities: Ordinary shares
Nature of interest: Direct Beneficial
Clearance to deal obtained: Yes
The value of the Shares awarded in terms of the LTIP is the actual cost (including transaction costs)
incurred between 20 November 2023 and 22 November 2023 for the specific purpose of settling the
Company's obligation in this regard.
Dunkeld
28 November 2023
Sponsor:
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 28-11-2023 09:00:00
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.
2023/11/27
Leadership and Governance Update - Appointment of Matias Cardarelli as Chief Executive Officer of PPC
View ArticleLeadership and Governance Update - Appointment of Matias Cardarelli as Chief Executive Officer of PPC
Leadership and Governance Update - Appointment of Matias Cardarelli as Chief Executive Officer of PPC
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
LEADERSHIP AND GOVERNANCE UPDATE – APPOINTMENT OF MATIAS CARDARELLI AS CHIEF
EXECUTIVE OFFICER OF PPC
Shareholders are referred to the announcement released on SENS on 4 September 2023, announcing
the appointment of Mr Matias Cardarelli as Chief Executive Officer of PPC subject to Matias receiving
his work permit.
The Board is pleased to announce that Matias' work permit has been issued and that he will formally
take over from Roland van Wijnen with effect from 01 December 2023.
The board would like to thank outgoing CEO Roland van Wijnen for his commitment, hard work, and
loyalty to PPC, its shareholders, employees, and customers.
Dunkeld
27 November 2023
Sponsor:
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 27-11-2023 09:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
LEADERSHIP AND GOVERNANCE UPDATE – APPOINTMENT OF MATIAS CARDARELLI AS CHIEF
EXECUTIVE OFFICER OF PPC
Shareholders are referred to the announcement released on SENS on 4 September 2023, announcing
the appointment of Mr Matias Cardarelli as Chief Executive Officer of PPC subject to Matias receiving
his work permit.
The Board is pleased to announce that Matias' work permit has been issued and that he will formally
take over from Roland van Wijnen with effect from 01 December 2023.
The board would like to thank outgoing CEO Roland van Wijnen for his commitment, hard work, and
loyalty to PPC, its shareholders, employees, and customers.
Dunkeld
27 November 2023
Sponsor:
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 27-11-2023 09:00:00
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.
Group Results for the Six Months ended 30 September 2023
Click below to view full PDF article
https://senspdf.jse.co.za/documents/2023/jse/isse/ppc/PPC30Sep.pdf
Group Results for the Six Months ended 30 September 2023
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(PPC or the company or the group)
SHORT-FORM ANNOUNCEMENT
GROUP RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Roland van Wijnen, CEO, said:
The period under review reflects an encouraging recovery for the PPC group, albeit off a low base. A key driver is
that profitability shows improvement across our core southern African markets, despite the weak macro environment and
decline in cement volumes in South Africa. Moreover, the rolling out of the South African government's infrastructure
development plans and protection of the local cement market through the introduction of import tariffs to create a
level playing field for domestic producers, remain elusive. Increased demand is required to enable us to more
effectively utilise the capacity available in our primary market. PPC Zimbabwe saw a strong recovery across all key
metrics when compared to the negative impact of the planned shutdown in the prior comparative period. Accounting has
been simplified following the adoption of the US dollar as its functional currency. PPC Zimbabwe continues to declare
and pay dividends. Reaching an agreement to dispose of PPC’s 51% stake in CIMERWA (Rwanda) is an important step in PPC’s
strategy of focusing on its core southern African markets. PPC has repurchased R103 million worth of its own shares,
just over half the R200 million approved for this purpose at its FY23 year-end. I would like to thank the many people
who make up the PPC community, and who have been part of the PPC journey during my tenure, for their support, energy
and commitment. Also, I wish them, and my successor Matias Cardarelli, all the best for the future.
Snapshot of performance from continuing operations
Consolidated group
- Revenue up 20,9% to R6 172 million (H1 FY23: R5 103 million)
- EBITDA margin up 3% pts to 17,3% (H1 FY23: 14,3%)
- EBITDA up 46,8% to R1 069 million (H1 FY23: R728 million)
- HEPS of 26 cents (H1 FY23: loss of 5 cents)
- EPS of 24 cents (H1 FY23: loss of 3 cents)
- Agreement to dispose of PPC’s 51% stake in CIMERWA (Rwanda) concluded on 17 November 2023 for
US$42,5 million
Reporting simplified due to hyperinflation no longer being applicable in the current reporting period
INDIVIDUAL BUSINESSES
SA and Botswana group
- Resilient performance in a challenging market
- Revenue, excluding dividends received, increased 2,0% to R3 546 million (H1 FY23: R3 477 million)
- SA and Botswana cement EBITDA margins increased to 12,6% (H1 FY23: 12,2%)
- After spending R103 million on the share repurchase programme, net debt for the SA and Botswana group
nonetheless reduced by R195 million (R70 million since FY23) to R730 million (H1 FY23: R925 million)
PPC Zimbabwe
- Strong recovery following impact of planned extended kiln shutdown in prior comparative period
- Revenue up 104% to R1 743 million (H1 FY23: R855 million)
- EBITDA margins increased to 24,6% (H1 FY23: 17,3%)
- Dividends of US$4,0 million paid (H1 FY23: US$5,0 million). A further dividend of US$7 million was
declared by PPC Zimbabwe in November 2023.
CIMERWA (Rwanda)
- Continued positive trajectory notwithstanding margin pressures
- Revenue up 14,5% to R883 million (H1 FY23: R771 million)
- EBITDA margins decreased to 29,4% (H1 FY23: 32,3%)
- Net cash at 30 September 2023 - R107 million (FY23 net debt of R162 million)
GROUP PERFORMANCE - CONTINUING OPERATIONS
PPC delivered a pleasing performance across all its markets for the six months to 30 September 2023 (the current
period) despite the weak macro environment for its core SA and Botswana group where it saw a decline in cement
volumes. Group revenue for the current period increased by 20.9% to R6 172 million (September 2022: R5 103 million)
driven by a 4% increase in group cement volumes, price increases and the rand depreciation against the US$.
Group cost of sales increased 16,1% to R4 934 million (September 2022: R4 251 million), being a lower rate of
increase than revenue, which, when combined with marginally lower administration and other operating expenses
resulted in a significant increase in operating profit to R675 million (September 2022: R273 million).
Group EBITDA increased by 46,8% to R1 069 million (September 2022: R728 million) as margins expanded in all the
markets, except Rwanda. In addition, there was a significant recovery of market share in Zimbabwe as well as a
return to profitability by the overall materials business.
Fair value and foreign exchange gains decreased from R82 million to R4 million due to the adoption of the US$ as the
functional currency for PPC Zimbabwe, thereby eliminating foreign exchange gains on monetary items held in Zimbabwe.
Similarly, the R206 million net monetary loss in the prior period due to hyperinflation is not applicable in the
current period. An impairment of R53 million relating to property, plant and equipment was made in the current period
(September 2022: Rnil). This is related to the mothballing by Cement SA of its Jupiter milling plant to secure cost
savings.
Finance costs decreased marginally to R81 million (September 2022: R84 million) notwithstanding the increases in
interest rates when compared to the prior period as gross debt continued to reduce. Investment income increased to
R15 million (September 2022: R10 million) on higher cash balances and higher market yields.
During the prior period the group realised a R23 million profit on the disposal of an equity-accounted investment,
Habesha.
Profit before tax increased to R560 million (September 2022: R106 million) and profit after tax was R431 million
(September 2022: R22 million). The effective tax rate for the current period is 23,0% (September 2022: 79%). The prior
period rate was negatively affected by a once off de-recognition of a deferred tax asset in PPC Ltd and the impact of
PPC Zimbabwe inflation.
Earnings per share (EPS) and headline earnings per share (HEPS) increased respectively to 24 cents
(September 2022: 3 cents loss) and 26 cents (September 2022: 5 cents loss).
The group's net cash flow before financing activities increased to R578 million (September 2022: R319 million excluding
discontinued operations) as cash generation remains a key priority.
In line with the disciplined capital allocation policy, capital expenditure for the current period was R219 million
(September 2022: R176 million). The share repurchase programme of R200 million, approved by the board in June 2023, was
52% (R103 million) completed at the end of September 2023.
Group net debt declined to R381 million (September 2022: R677 million) from R765 million at 31 March 2023 due to strong
cash generation as cash balances remain relatively high at R640 million (September 2022: R766 million) when compared to
the 31 March 2023 balance of R424 million. Net debt for the SA and Botswana group improved by R195 million
(R70 million since FY23) to R730 million (H1 FY23: R925 million) and gross leverage levels remain below the target range
of 1,3 - 1,5 x last twelve month's EBITDA.
Zimbabwe remains debt-free and had unrestricted cash holdings at 30 September 2023 of R226 million up from R118 million
at 31 March 2023 (September 2022: R253 million). Some 99,5% of PPC Zimbabwe's cash is held in hard currencies. Zimbabwe
declared and paid a US$4 million dividend during the current period and declared a further US$7,0 million dividend in
November 2023.
CIMERWA's gross debt declined to R167 million from R383 million at 31 March 2023 (September 2022: R365 million). Cash
balances increased marginally to R274 million from R221 million at 31 March 2022 (September 2022: R345 million) as cash
generation contributed positively following the dividend paid in March of R172 million.
SOUTH AFRICA AND BOTSWANA CEMENT
Overall cement sales volumes in South Africa and Botswana for the current period were down 4,7% when compared to
the prior comparative period, mainly due to a decline in sales in the coastal and Botswana regions. Sales were only
marginally negative in the inland region on an improved retail performance despite price increases and an ongoing
oversupply. Industrial and construction demand for technical products remains a strong differentiator for PPC. The
weaker coastal demand was due to a weaker economic environment in the region and excessive rain. Larger construction
projects in the region were also delayed. Imports into South Africa are at a stable level and continue to impact the
domestic industry negatively. In addition, Botswana was negatively impacted by increased Namibian imports supported
by export incentives provided to producers in Namibia.
PPC continues to increase its selling prices on a bi-annual basis and achieved an average selling price increase of
8,8% when compared to the six months ended 30 September 2022. For the six months ended 30 September 2023, South Africa
and Botswana cement revenue increased by 4,7% to R3 158 million (September 2022: R3 015 million), also impacted by 0,4%
adverse product mix.
High input cost inflation was experienced during the period, resulting in variable production costs per tonne cement
sold increasing by some 9,7% compared to the prior period. Stringent cost mitigation measures contained fixed costs,
with such costs decreasing by 1,9% compared to the prior period. Overall, total costs increased by 3,6% compared to
prior period.
EBITDA increased by 8,2% to R398 million (September 2022: R368 million) with a margin of 12,6% (September 2022: 12,2%)
as cost control initiatives combined with bi-annual price increases saw margins stabilise, albeit at low levels.
AGGREGATES, READYMIX AND ASH
Readymix volumes decreased by 19,7%, while aggregates volumes decreased by 16,8% compared to the prior period. Fly
ash sales volumes increased by 13,8%. Overall revenue for the materials division decreased by 6,1% to R586 million
(September 2022: R624 million), due to the largest contributor, readymix, experiencing a significant reduction in
demand offset in part by an increase in the average selling price. The divisional EBITDA increased to a profit of
R14 million (September 2022: R14 million loss) following the successful implementation of turnaround measures
implemented prior to 31 March 2023. These included a reduction of the absolute fixed costs and the conversion of
certain fixed costs to variable costs.
INTERNATIONAL
Zimbabwe
During the current reporting period, PPC's operation in Zimbabwe saw a strong recovery in all its key metrics.
Zimbabwe continued to win back market share it had lost during the planned extended kiln shutdown in the first half
of the prior year. Cement sales volumes increased 44,0% mainly due to improved clinker availability for production,
increased local demand, a reduction in imports and a soft base in the prior comparative numbers due to the extended
shutdown.
PPC Zimbabwe changed its functional currency to US$ and reporting has therefore been simplified as hyperinflation
accounting is no longer applicable. The rand depreciated by 14,9% to the US$ when compared to the prior comparative
period, bolstering the Zimbabwean overall performance when reported in South African rands.
Revenue for the current period increased by 104% in rand terms to R1 743 million (September 2022: R855 million) which,
together with the focus on costs resulted in EBITDA margins increasing to 24,6% (September 2022: 17,3%). PPC Zimbabwe's
EBITDA increased by 190% to R429 million (September 2022: R148 million).
Rwanda
CIMERWA's cement sales volumes increased by 11,9% for the current period when compared to the prior period, as local
and regional demand remains strong albeit with increased competition. CIMERWA is expected to remain in a strong
position to benefit from the continued growth of cement demand.
Revenue for the six months ended 30 September 2023 increased by 14,5% to R883 million (September 2022: R771 million),
as the rand remained relatively stable against the franc, depreciating 1%. In local currency, revenue increased
by 13,2% and EBITDA increased by 4,4% to R260 million (September 2022: R249 million). With low average selling price
increases of 1,3% due to product mix and continued pressure on input cost pricing, EBITDA margins decreased to 29,4%
(September 2022: 32,3%).
LEADERSHIP
Further to the announcement of Matias Cardarelli as the incoming chief executive officer of PPC on 4 September 2023,
shareholders are advised that the necessary work permit has not yet been finalised. However, sound progress has been
made and it is still envisaged that Mr Cardarelli will be able to start during the quarter ending 31 December 2023.
The current managing director of South Africa and Botswana, Njombo Lekula, has announced he will be leaving PPC after
three decades with the organisation. The board thanks Njombo for his invaluable contribution and dedication throughout
his tenure at PPC and wish him the very best for the future. While he will be winding down his involvement and handing
over, he will remain as part of PPC until 31 December 2023. Mr Lekula's role will not be filled but rather merged with
that of the group CEO. This will create a more efficient structure to support PPC's strategic goals.
OUTLOOK
The key focus for PPC will remain on its southern Africa businesses, including South Africa, Botswana and Zimbabwe.
This includes continuing to improve its profitability and enhance returns through further operational efficiencies and cost containment measures. Without a significant increase in
infrastructure spending and South African gross domestic product, South Africa's cement demand is expected to remain
subdued and sustainability is therefore dependent on both capital discipline and margin management. Notwithstanding,
PPC South Africa remains well positioned to benefit from an increase in cement demand with additional capacity readily
available to capture an upswing in demand without significant additional capital expenditure being required. Following
a strong recovery in market share and profitability in PPC Zimbabwe in the current period, the company anticipates at
least maintaining these gains. Further improvements will become possible following the implementation of the fly ash
project, which is still in the procurement stage.
Chairman Chief executive officer Chief financial officer
PJ Moleketi R van Wijnen B Berlin
Sandton
20 November 2023
Short-form announcement
This short-form announcement is the responsibility of the directors. It is only a summary of the information contained
in the full announcement and does not contain full or complete details.
Any investment decision should be based on the full announcement accessible from Monday, 20 November 2023, via the JSE
link as follows:
https://senspdf.jse.co.za/documents/2023/JSE/ISSE/PPC/PPC30Sep.pdf
and also available on the Company's website at
https://www.ppc.africa/investors-relations/reports/?t=interim
A copy of the full announcement is also available for inspection at the company's registered office and may be
requested from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours.
A live and recorded video webcast of the results presentation will be held today at 10:00am (SAST) and can be
accessed via this link: https://www.corpcam.com//PPC20112023
Registered office:
First Floor, 5 Parks Boulevard, Oxford Parks, Dunkeld, South Africa
(PO Box 787416, Sandton, 2146, South Africa)
DIRECTORS:
PJ Moleketi (chair), R van Wijnen* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo,
CH Naude, D Smith, MR Thompson,
* Dutch **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
Financial Communications adviser: Instinctif Partners, Louise Fortuin Mobile: +27 71 605 4294
Date: 20-11-2023 08:15:00
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.
https://senspdf.jse.co.za/documents/2023/jse/isse/ppc/PPC30Sep.pdf
Group Results for the Six Months ended 30 September 2023
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(PPC or the company or the group)
SHORT-FORM ANNOUNCEMENT
GROUP RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Roland van Wijnen, CEO, said:
The period under review reflects an encouraging recovery for the PPC group, albeit off a low base. A key driver is
that profitability shows improvement across our core southern African markets, despite the weak macro environment and
decline in cement volumes in South Africa. Moreover, the rolling out of the South African government's infrastructure
development plans and protection of the local cement market through the introduction of import tariffs to create a
level playing field for domestic producers, remain elusive. Increased demand is required to enable us to more
effectively utilise the capacity available in our primary market. PPC Zimbabwe saw a strong recovery across all key
metrics when compared to the negative impact of the planned shutdown in the prior comparative period. Accounting has
been simplified following the adoption of the US dollar as its functional currency. PPC Zimbabwe continues to declare
and pay dividends. Reaching an agreement to dispose of PPC’s 51% stake in CIMERWA (Rwanda) is an important step in PPC’s
strategy of focusing on its core southern African markets. PPC has repurchased R103 million worth of its own shares,
just over half the R200 million approved for this purpose at its FY23 year-end. I would like to thank the many people
who make up the PPC community, and who have been part of the PPC journey during my tenure, for their support, energy
and commitment. Also, I wish them, and my successor Matias Cardarelli, all the best for the future.
Snapshot of performance from continuing operations
Consolidated group
- Revenue up 20,9% to R6 172 million (H1 FY23: R5 103 million)
- EBITDA margin up 3% pts to 17,3% (H1 FY23: 14,3%)
- EBITDA up 46,8% to R1 069 million (H1 FY23: R728 million)
- HEPS of 26 cents (H1 FY23: loss of 5 cents)
- EPS of 24 cents (H1 FY23: loss of 3 cents)
- Agreement to dispose of PPC’s 51% stake in CIMERWA (Rwanda) concluded on 17 November 2023 for
US$42,5 million
Reporting simplified due to hyperinflation no longer being applicable in the current reporting period
INDIVIDUAL BUSINESSES
SA and Botswana group
- Resilient performance in a challenging market
- Revenue, excluding dividends received, increased 2,0% to R3 546 million (H1 FY23: R3 477 million)
- SA and Botswana cement EBITDA margins increased to 12,6% (H1 FY23: 12,2%)
- After spending R103 million on the share repurchase programme, net debt for the SA and Botswana group
nonetheless reduced by R195 million (R70 million since FY23) to R730 million (H1 FY23: R925 million)
PPC Zimbabwe
- Strong recovery following impact of planned extended kiln shutdown in prior comparative period
- Revenue up 104% to R1 743 million (H1 FY23: R855 million)
- EBITDA margins increased to 24,6% (H1 FY23: 17,3%)
- Dividends of US$4,0 million paid (H1 FY23: US$5,0 million). A further dividend of US$7 million was
declared by PPC Zimbabwe in November 2023.
CIMERWA (Rwanda)
- Continued positive trajectory notwithstanding margin pressures
- Revenue up 14,5% to R883 million (H1 FY23: R771 million)
- EBITDA margins decreased to 29,4% (H1 FY23: 32,3%)
- Net cash at 30 September 2023 - R107 million (FY23 net debt of R162 million)
GROUP PERFORMANCE - CONTINUING OPERATIONS
PPC delivered a pleasing performance across all its markets for the six months to 30 September 2023 (the current
period) despite the weak macro environment for its core SA and Botswana group where it saw a decline in cement
volumes. Group revenue for the current period increased by 20.9% to R6 172 million (September 2022: R5 103 million)
driven by a 4% increase in group cement volumes, price increases and the rand depreciation against the US$.
Group cost of sales increased 16,1% to R4 934 million (September 2022: R4 251 million), being a lower rate of
increase than revenue, which, when combined with marginally lower administration and other operating expenses
resulted in a significant increase in operating profit to R675 million (September 2022: R273 million).
Group EBITDA increased by 46,8% to R1 069 million (September 2022: R728 million) as margins expanded in all the
markets, except Rwanda. In addition, there was a significant recovery of market share in Zimbabwe as well as a
return to profitability by the overall materials business.
Fair value and foreign exchange gains decreased from R82 million to R4 million due to the adoption of the US$ as the
functional currency for PPC Zimbabwe, thereby eliminating foreign exchange gains on monetary items held in Zimbabwe.
Similarly, the R206 million net monetary loss in the prior period due to hyperinflation is not applicable in the
current period. An impairment of R53 million relating to property, plant and equipment was made in the current period
(September 2022: Rnil). This is related to the mothballing by Cement SA of its Jupiter milling plant to secure cost
savings.
Finance costs decreased marginally to R81 million (September 2022: R84 million) notwithstanding the increases in
interest rates when compared to the prior period as gross debt continued to reduce. Investment income increased to
R15 million (September 2022: R10 million) on higher cash balances and higher market yields.
During the prior period the group realised a R23 million profit on the disposal of an equity-accounted investment,
Habesha.
Profit before tax increased to R560 million (September 2022: R106 million) and profit after tax was R431 million
(September 2022: R22 million). The effective tax rate for the current period is 23,0% (September 2022: 79%). The prior
period rate was negatively affected by a once off de-recognition of a deferred tax asset in PPC Ltd and the impact of
PPC Zimbabwe inflation.
Earnings per share (EPS) and headline earnings per share (HEPS) increased respectively to 24 cents
(September 2022: 3 cents loss) and 26 cents (September 2022: 5 cents loss).
The group's net cash flow before financing activities increased to R578 million (September 2022: R319 million excluding
discontinued operations) as cash generation remains a key priority.
In line with the disciplined capital allocation policy, capital expenditure for the current period was R219 million
(September 2022: R176 million). The share repurchase programme of R200 million, approved by the board in June 2023, was
52% (R103 million) completed at the end of September 2023.
Group net debt declined to R381 million (September 2022: R677 million) from R765 million at 31 March 2023 due to strong
cash generation as cash balances remain relatively high at R640 million (September 2022: R766 million) when compared to
the 31 March 2023 balance of R424 million. Net debt for the SA and Botswana group improved by R195 million
(R70 million since FY23) to R730 million (H1 FY23: R925 million) and gross leverage levels remain below the target range
of 1,3 - 1,5 x last twelve month's EBITDA.
Zimbabwe remains debt-free and had unrestricted cash holdings at 30 September 2023 of R226 million up from R118 million
at 31 March 2023 (September 2022: R253 million). Some 99,5% of PPC Zimbabwe's cash is held in hard currencies. Zimbabwe
declared and paid a US$4 million dividend during the current period and declared a further US$7,0 million dividend in
November 2023.
CIMERWA's gross debt declined to R167 million from R383 million at 31 March 2023 (September 2022: R365 million). Cash
balances increased marginally to R274 million from R221 million at 31 March 2022 (September 2022: R345 million) as cash
generation contributed positively following the dividend paid in March of R172 million.
SOUTH AFRICA AND BOTSWANA CEMENT
Overall cement sales volumes in South Africa and Botswana for the current period were down 4,7% when compared to
the prior comparative period, mainly due to a decline in sales in the coastal and Botswana regions. Sales were only
marginally negative in the inland region on an improved retail performance despite price increases and an ongoing
oversupply. Industrial and construction demand for technical products remains a strong differentiator for PPC. The
weaker coastal demand was due to a weaker economic environment in the region and excessive rain. Larger construction
projects in the region were also delayed. Imports into South Africa are at a stable level and continue to impact the
domestic industry negatively. In addition, Botswana was negatively impacted by increased Namibian imports supported
by export incentives provided to producers in Namibia.
PPC continues to increase its selling prices on a bi-annual basis and achieved an average selling price increase of
8,8% when compared to the six months ended 30 September 2022. For the six months ended 30 September 2023, South Africa
and Botswana cement revenue increased by 4,7% to R3 158 million (September 2022: R3 015 million), also impacted by 0,4%
adverse product mix.
High input cost inflation was experienced during the period, resulting in variable production costs per tonne cement
sold increasing by some 9,7% compared to the prior period. Stringent cost mitigation measures contained fixed costs,
with such costs decreasing by 1,9% compared to the prior period. Overall, total costs increased by 3,6% compared to
prior period.
EBITDA increased by 8,2% to R398 million (September 2022: R368 million) with a margin of 12,6% (September 2022: 12,2%)
as cost control initiatives combined with bi-annual price increases saw margins stabilise, albeit at low levels.
AGGREGATES, READYMIX AND ASH
Readymix volumes decreased by 19,7%, while aggregates volumes decreased by 16,8% compared to the prior period. Fly
ash sales volumes increased by 13,8%. Overall revenue for the materials division decreased by 6,1% to R586 million
(September 2022: R624 million), due to the largest contributor, readymix, experiencing a significant reduction in
demand offset in part by an increase in the average selling price. The divisional EBITDA increased to a profit of
R14 million (September 2022: R14 million loss) following the successful implementation of turnaround measures
implemented prior to 31 March 2023. These included a reduction of the absolute fixed costs and the conversion of
certain fixed costs to variable costs.
INTERNATIONAL
Zimbabwe
During the current reporting period, PPC's operation in Zimbabwe saw a strong recovery in all its key metrics.
Zimbabwe continued to win back market share it had lost during the planned extended kiln shutdown in the first half
of the prior year. Cement sales volumes increased 44,0% mainly due to improved clinker availability for production,
increased local demand, a reduction in imports and a soft base in the prior comparative numbers due to the extended
shutdown.
PPC Zimbabwe changed its functional currency to US$ and reporting has therefore been simplified as hyperinflation
accounting is no longer applicable. The rand depreciated by 14,9% to the US$ when compared to the prior comparative
period, bolstering the Zimbabwean overall performance when reported in South African rands.
Revenue for the current period increased by 104% in rand terms to R1 743 million (September 2022: R855 million) which,
together with the focus on costs resulted in EBITDA margins increasing to 24,6% (September 2022: 17,3%). PPC Zimbabwe's
EBITDA increased by 190% to R429 million (September 2022: R148 million).
Rwanda
CIMERWA's cement sales volumes increased by 11,9% for the current period when compared to the prior period, as local
and regional demand remains strong albeit with increased competition. CIMERWA is expected to remain in a strong
position to benefit from the continued growth of cement demand.
Revenue for the six months ended 30 September 2023 increased by 14,5% to R883 million (September 2022: R771 million),
as the rand remained relatively stable against the franc, depreciating 1%. In local currency, revenue increased
by 13,2% and EBITDA increased by 4,4% to R260 million (September 2022: R249 million). With low average selling price
increases of 1,3% due to product mix and continued pressure on input cost pricing, EBITDA margins decreased to 29,4%
(September 2022: 32,3%).
LEADERSHIP
Further to the announcement of Matias Cardarelli as the incoming chief executive officer of PPC on 4 September 2023,
shareholders are advised that the necessary work permit has not yet been finalised. However, sound progress has been
made and it is still envisaged that Mr Cardarelli will be able to start during the quarter ending 31 December 2023.
The current managing director of South Africa and Botswana, Njombo Lekula, has announced he will be leaving PPC after
three decades with the organisation. The board thanks Njombo for his invaluable contribution and dedication throughout
his tenure at PPC and wish him the very best for the future. While he will be winding down his involvement and handing
over, he will remain as part of PPC until 31 December 2023. Mr Lekula's role will not be filled but rather merged with
that of the group CEO. This will create a more efficient structure to support PPC's strategic goals.
OUTLOOK
The key focus for PPC will remain on its southern Africa businesses, including South Africa, Botswana and Zimbabwe.
This includes continuing to improve its profitability and enhance returns through further operational efficiencies and cost containment measures. Without a significant increase in
infrastructure spending and South African gross domestic product, South Africa's cement demand is expected to remain
subdued and sustainability is therefore dependent on both capital discipline and margin management. Notwithstanding,
PPC South Africa remains well positioned to benefit from an increase in cement demand with additional capacity readily
available to capture an upswing in demand without significant additional capital expenditure being required. Following
a strong recovery in market share and profitability in PPC Zimbabwe in the current period, the company anticipates at
least maintaining these gains. Further improvements will become possible following the implementation of the fly ash
project, which is still in the procurement stage.
Chairman Chief executive officer Chief financial officer
PJ Moleketi R van Wijnen B Berlin
Sandton
20 November 2023
Short-form announcement
This short-form announcement is the responsibility of the directors. It is only a summary of the information contained
in the full announcement and does not contain full or complete details.
Any investment decision should be based on the full announcement accessible from Monday, 20 November 2023, via the JSE
link as follows:
https://senspdf.jse.co.za/documents/2023/JSE/ISSE/PPC/PPC30Sep.pdf
and also available on the Company's website at
https://www.ppc.africa/investors-relations/reports/?t=interim
A copy of the full announcement is also available for inspection at the company's registered office and may be
requested from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours.
A live and recorded video webcast of the results presentation will be held today at 10:00am (SAST) and can be
accessed via this link: https://www.corpcam.com//PPC20112023
Registered office:
First Floor, 5 Parks Boulevard, Oxford Parks, Dunkeld, South Africa
(PO Box 787416, Sandton, 2146, South Africa)
DIRECTORS:
PJ Moleketi (chair), R van Wijnen* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo,
CH Naude, D Smith, MR Thompson,
* Dutch **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
Financial Communications adviser: Instinctif Partners, Louise Fortuin Mobile: +27 71 605 4294
Date: 20-11-2023 08:15:00
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.
Disposal by PPC Limited of its 51% Interest in CIMERWA - Rwanda
Disposal by PPC Limited of its 51% Interest in CIMERWA - Rwanda
PPC Limited
(Incorporated in the Republic of South Africa)
(Registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
DISPOSAL by PPC OF ITS 51% INTEREST IN CIMERWA (RWANDA)
1. INTRODUCTION
PPC shareholders are advised that the Company's wholly-owned subsidiary, PPC International Holdings
Proprietary Limited ("PPCIH"), concluded an agreement (the "Disposal Agreement") on 17 November
2023 ("Signature Date") to dispose of its entire shareholding (the "Disposal Shares") in CIMERWA PLC
("CIMERWA") to National Cement Holding Limited (the "Purchaser"), for a cash consideration of US$42.5
million (the "Disposal Consideration" and the "Disposal").
CIMERWA is a Rwandan-based integrated cement manufacturer in which PPC has held a 51% interest
since 2013. The remaining 49% is held by minority shareholders, and this 49% is listed on the Rwanda
Stock Exchange.
The Purchaser is a privately-owned company and is part of the Devki group that is one of the largest
manufacturers of clinker and cement in East Africa, with operations in Kenya and Uganda.
2. EFFECTIVE DATE
The effective date of the Disposal will be the seventh business day after the day on which the last of the
conditions precedent (as detailed in paragraph 4 below), are fulfilled or waived (the "Effective Date"). On
the Effective Date, all legal risk in and all benefit attaching to the Disposal Shares will pass to the Purchaser
against payment of the Disposal Consideration.
3. RATIONALE FOR THE DISPOSAL AND USE OF PROCEEDS
The Disposal is pursuant to the Company's revised strategy to focus on its core Southern African markets
and results in PPC exiting the last of its Central and East African assets.
PPC believes that the Disposal enables the entry of a new long-term strategic investor in CIMERWA that
has the required financial and technical resources to continue to support and execute CIMERWA's
strategy, which is in line with the Purchaser's strategy to be an expanding regional cement producer.
The use of the Disposal Consideration will be considered by PPC in terms of its capital allocation model
and its optimal gearing levels.
4. CONDITIONS PRECEDENT
The implementation of the Disposal will be subject to the fulfilment and / or waiver of, inter alia, the
following conditions precedent, by no later than 29 February 2024:
4.1 notification by the parties of the Disposal to the Common Market for Eastern and Southern Africa;
4.2 CIMERWA has received tax clearance from the Rwanda Revenue Authority;
4.3 approval of the change of control arising out of the Disposal has been obtained from CIMERWA's
bankers; and
4.4 a non-objection confirmation has been received from the Rwanda Stock Exchange to conduct the
Disposal as an off-market sale/transfer.
5. WARRANTIES AND OTHER MATERIAL TERMS
PPCIH has provided the Purchaser with such warranties as are considered standard for a transaction of
this nature.
National Cement Company Limited, a significant operating company within the Devki group, has furnished
PPC with a corporate guarantee in respect of payment of the Purchase Consideration.
6. FINANCIAL INFORMATION
The financial information set out below has not been reviewed or reported on by a reporting accountant
in terms of Section 8 of the JSE Listings Requirements and is the responsibility of PPC's directors.
CIMERWA had a net asset value of R1.2 billion as at 31 March 2023, being the date of the Company's last
financial year-end, and recorded a net profit after tax of R237 million for the year ended 31 March 2023.
At 31 March 2023, PPC had recorded the Disposal Shares at a total book value of US$38.5 million (R275.2
million).
The above financial information has been extracted from PPC's audited and consolidated annual financial
statements for the year ended 31 March 2023, which were prepared in accordance with International
Financial Reporting Standards.
7. CATEGORISATION
The Disposal is classified as a category 2 transaction in terms of the JSE Listings Requirements and,
accordingly, does not require shareholder approval.
Dunkeld
17 November 2023
JSE Sponsor
Questco Corporate Advisory Proprietary Limited
Corporate Advisor
Standard Chartered Bank
Legal Advisor
Cliffe Dekker Hofmeyr Inc.
Date: 17-11-2023 02:16:00
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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
DISPOSAL by PPC OF ITS 51% INTEREST IN CIMERWA (RWANDA)
1. INTRODUCTION
PPC shareholders are advised that the Company's wholly-owned subsidiary, PPC International Holdings
Proprietary Limited ("PPCIH"), concluded an agreement (the "Disposal Agreement") on 17 November
2023 ("Signature Date") to dispose of its entire shareholding (the "Disposal Shares") in CIMERWA PLC
("CIMERWA") to National Cement Holding Limited (the "Purchaser"), for a cash consideration of US$42.5
million (the "Disposal Consideration" and the "Disposal").
CIMERWA is a Rwandan-based integrated cement manufacturer in which PPC has held a 51% interest
since 2013. The remaining 49% is held by minority shareholders, and this 49% is listed on the Rwanda
Stock Exchange.
The Purchaser is a privately-owned company and is part of the Devki group that is one of the largest
manufacturers of clinker and cement in East Africa, with operations in Kenya and Uganda.
2. EFFECTIVE DATE
The effective date of the Disposal will be the seventh business day after the day on which the last of the
conditions precedent (as detailed in paragraph 4 below), are fulfilled or waived (the "Effective Date"). On
the Effective Date, all legal risk in and all benefit attaching to the Disposal Shares will pass to the Purchaser
against payment of the Disposal Consideration.
3. RATIONALE FOR THE DISPOSAL AND USE OF PROCEEDS
The Disposal is pursuant to the Company's revised strategy to focus on its core Southern African markets
and results in PPC exiting the last of its Central and East African assets.
PPC believes that the Disposal enables the entry of a new long-term strategic investor in CIMERWA that
has the required financial and technical resources to continue to support and execute CIMERWA's
strategy, which is in line with the Purchaser's strategy to be an expanding regional cement producer.
The use of the Disposal Consideration will be considered by PPC in terms of its capital allocation model
and its optimal gearing levels.
4. CONDITIONS PRECEDENT
The implementation of the Disposal will be subject to the fulfilment and / or waiver of, inter alia, the
following conditions precedent, by no later than 29 February 2024:
4.1 notification by the parties of the Disposal to the Common Market for Eastern and Southern Africa;
4.2 CIMERWA has received tax clearance from the Rwanda Revenue Authority;
4.3 approval of the change of control arising out of the Disposal has been obtained from CIMERWA's
bankers; and
4.4 a non-objection confirmation has been received from the Rwanda Stock Exchange to conduct the
Disposal as an off-market sale/transfer.
5. WARRANTIES AND OTHER MATERIAL TERMS
PPCIH has provided the Purchaser with such warranties as are considered standard for a transaction of
this nature.
National Cement Company Limited, a significant operating company within the Devki group, has furnished
PPC with a corporate guarantee in respect of payment of the Purchase Consideration.
6. FINANCIAL INFORMATION
The financial information set out below has not been reviewed or reported on by a reporting accountant
in terms of Section 8 of the JSE Listings Requirements and is the responsibility of PPC's directors.
CIMERWA had a net asset value of R1.2 billion as at 31 March 2023, being the date of the Company's last
financial year-end, and recorded a net profit after tax of R237 million for the year ended 31 March 2023.
At 31 March 2023, PPC had recorded the Disposal Shares at a total book value of US$38.5 million (R275.2
million).
The above financial information has been extracted from PPC's audited and consolidated annual financial
statements for the year ended 31 March 2023, which were prepared in accordance with International
Financial Reporting Standards.
7. CATEGORISATION
The Disposal is classified as a category 2 transaction in terms of the JSE Listings Requirements and,
accordingly, does not require shareholder approval.
Dunkeld
17 November 2023
JSE Sponsor
Questco Corporate Advisory Proprietary Limited
Corporate Advisor
Standard Chartered Bank
Legal Advisor
Cliffe Dekker Hofmeyr Inc.
Date: 17-11-2023 02:16:00
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.
Trading Statement for the six month ended 30 September 2023
Trading Statement for the six month ended 30 September 2023
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
("PPC" or "the group")
TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
PPC is currently finalising its results for the six months ended 30 September 2023 ("the current period").
Shareholders are advised that PPC is satisfied that a reasonable degree of certainty exists that the
expected earnings per share ("EPS") and headline earning per share ("HEPS") for the current period will
differ by at least 20% from that for the previous corresponding period, being the six months ended 30
September 2022 ("the prior period") and that a trading statement is required in terms of the JSE Limited
Listings Requirements.
This difference is primarily due to the current period EPS and HEPS numbers being impacted by a strong
performance by PPC Zimbabwe in the current period compared to the prior period in which it had an
extended kiln shutdown. In addition, in the current period, PPC Zimbabwe changed its functional currency
from the Zimbabwean dollar to the United States dollar and this also had a positive impact given the
elimination of net monetary losses arising in the prior period due to hyperinflation accounting.
The following EPS and HEPS for the group are expected:
Current period Prior period
Expectation range Restated*
EPS (cents) 1 21.0 to 25.0 (30)
HEPS (cents) 1 25.5 to 26.5 (6)
1 Brackets denote losses per share
*Shareholders are referred to the annual financial statements for the year ended 31 March 2023, where-in it was
reported that net impairments had incorrectly been taken in prior periods on the classification of PPC Barnet as a
disposal group, which should instead have been taken as a loss from discontinued operations when control was
actually lost, being 29 April 2022. The comparatives for the financial year ended 31 March 2022, were accordingly re-
stated for these non-cash adjustments. This also affects the prior period and the EPS will accordingly be re-stated for
the PPC group from (9) cents to (30) cents as stated above.
Moreover, the South Africa & Botswana Cement and Rwanda (CIMERWA) EBITDA margins remain in line
with those disclosed in the operational update, dated 20 September 2023, of 11% and 29% respectively.
The financial information on which this trading statement is based is the responsibility of the directors of
PPC and has not been reviewed or reported on by the group's independent external auditor. Full details of
the groups' performance will be contained in the group's unaudited consolidated financial statements for
the six months ended 30 September 2023, which are expected to be released on or about 20 November
2023.
Dunkeld
9 November 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners Louise Fortuin
Mobile: +27 71 605 4294
Date: 09-11-2023 12:40:00
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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
("PPC" or "the group")
TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
PPC is currently finalising its results for the six months ended 30 September 2023 ("the current period").
Shareholders are advised that PPC is satisfied that a reasonable degree of certainty exists that the
expected earnings per share ("EPS") and headline earning per share ("HEPS") for the current period will
differ by at least 20% from that for the previous corresponding period, being the six months ended 30
September 2022 ("the prior period") and that a trading statement is required in terms of the JSE Limited
Listings Requirements.
This difference is primarily due to the current period EPS and HEPS numbers being impacted by a strong
performance by PPC Zimbabwe in the current period compared to the prior period in which it had an
extended kiln shutdown. In addition, in the current period, PPC Zimbabwe changed its functional currency
from the Zimbabwean dollar to the United States dollar and this also had a positive impact given the
elimination of net monetary losses arising in the prior period due to hyperinflation accounting.
The following EPS and HEPS for the group are expected:
Current period Prior period
Expectation range Restated*
EPS (cents) 1 21.0 to 25.0 (30)
HEPS (cents) 1 25.5 to 26.5 (6)
1 Brackets denote losses per share
*Shareholders are referred to the annual financial statements for the year ended 31 March 2023, where-in it was
reported that net impairments had incorrectly been taken in prior periods on the classification of PPC Barnet as a
disposal group, which should instead have been taken as a loss from discontinued operations when control was
actually lost, being 29 April 2022. The comparatives for the financial year ended 31 March 2022, were accordingly re-
stated for these non-cash adjustments. This also affects the prior period and the EPS will accordingly be re-stated for
the PPC group from (9) cents to (30) cents as stated above.
Moreover, the South Africa & Botswana Cement and Rwanda (CIMERWA) EBITDA margins remain in line
with those disclosed in the operational update, dated 20 September 2023, of 11% and 29% respectively.
The financial information on which this trading statement is based is the responsibility of the directors of
PPC and has not been reviewed or reported on by the group's independent external auditor. Full details of
the groups' performance will be contained in the group's unaudited consolidated financial statements for
the six months ended 30 September 2023, which are expected to be released on or about 20 November
2023.
Dunkeld
9 November 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners Louise Fortuin
Mobile: +27 71 605 4294
Date: 09-11-2023 12:40:00
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.
Operating Update for the five months ended 31 August 2023
Operating Update for the five months ended 31 August 2023
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the company” or “the group”)
OPERATING UPDATE FOR THE FIVE MONTHS ENDED 31 AUGUST 2023
GROUP PERFORMANCE
For the five months ended August 2023, compared to the five months ended August 2022 (the “comparable
period”), revenue for PPC’s South Africa (“SA”) and Botswana group (previously referred to as SA obligor group),
which excludes Zimbabwe and Rwanda (CIMERWA), increased by 5%, driven by an increase of average selling
prices despite weaker cement sales volumes. Revenues from the group’s operations in both Zimbabwe and
Rwanda were materially stronger than the comparable period increasing by 58% (US$ parallel rate) and 19% (in
ZAR) respectively.
Group cement sales volumes (including Zimbabwe and Rwanda) for the five months ended August 2023 were 3%
higher than the comparable period due to exceptionally strong growth in Zimbabwe and, to a lesser extent,
Rwanda, while cement volumes continued to decline in South Africa. While the materials business continued to
see a decline in volumes, the cost reduction actions and price increases implemented resulted in EBITDA turning
from negative in the comparable period to neutral in the five months ended August 2023.
EBITDA margins for SA and Botswana cement were flat against the comparable period at 11%, as price increases
and cost initiatives enabled the margin to be maintained.
Cash generation in the SA and Botswana group was positive due to the stabilised cement EBITDA, improvement
in the materials business EBITDA and lower than anticipated capital expenditure. Cash generation includes a
dividend received from Zimbabwe in July 2023 of R76 million ($3.5 million) compared to R68 million ($4.2 million)
in the comparable period.
SOUTH AFRICA & BOTSWANA CEMENT
Cement sales volumes in South Africa and Botswana decreased by 6% period-on-period for the five months ended
August 2023. Cement sales volumes in the inland region continued their decline, albeit at a significantly lower
rate, while the coastal region saw a downturn in volumes following higher than usual rainfall and weak retail
demand.
The average selling price increased by 10% during the period under review as bi-annual increases were
implemented in January and July 2023. Notwithstanding the lower volumes, this resulted in revenue growth of
5%. EBITDA for the period also increased by 5% as margins stabilised when compared to the comparable period.
PPC will continue its efforts to counter input price inflation through price adjustments, operational efficiencies
and improved industrial performance. SA and Botswana group’s gross debt remains unchanged from 31 March
2023, but cash has increased from R131 million to R283 million, leaving net debt at R648 million at 31 August
2023 from R800 million at 31 March 2023.
The BEE transaction announced on SENS on 7 August 2023 for 10% of PPC South Africa Holdings Proprietary
Limited (“PPC SA Holdings”) is for the benefit of PPC’s South African employees. Qualifying South African
employees therefore participated in the amount paid by PPC Cement SA (Proprietary) Limited to PPC SA Holdings
to enable it to declare a dividend to PPC, which will be utilised to fund the share repurchase of R200 million
announced in June 2023.
MATERIALS
The materials business is now contributing marginally to the EBITDA of the SA and Botswana group following the
implementation of various improvement actions. Price increases across ash, aggregates and readymix together
with an improved cost structure resulted in marginally positive EBITDA compared to a negative in the comparable
period.
ZIMBABWE
The cement market in Zimbabwe continued to show growth as a result of both residential construction and
government funded infrastructure projects. PPC Zimbabwe continued to win back market share during the period
following the planned maintenance shut down in the prior year. Cement sales volumes increased 42% period on
period.
PPC Zimbabwe’s average US$ selling price increased by 12% (US$ parallel rate) during the period. The improved
volumes and pricing allowed for a meaningful improvement in EBITDA margins to 27%, a significant improvement
from 14% in the comparable period, when there was a planned shutdown.
PPC received a US$3.5 million dividend in July 2023 and anticipates an additional dividend to be declared upon
the publication of PPC Zimbabwe's interim results in November 2023.
Shareholders were previously advised that 19% of the 29.6% of PPC Zimbabwe held by various indigenisation
parties vested on 5 July 2023 and PPC Zimbabwe expected to re-purchase such shares at US$ one cent each in
accordance with the relevant agreements. The repurchase of such shares was approved at an extraordinary
general meeting of PPC Zimbabwe’s shareholders on 29 August 2023 and all such shares were subsequently re-
purchased at US$ one cent each and cancelled. Consequently, PPC now holds 90% of PPC Zimbabwe.
Economically, PPC will receive 99.5% of all dividends until the notional vendor financing of the remaining
indigenous shareholder is repaid. Once-off costs incurred by PPC in connection with the unwinding of the
indigenisation transaction amounted to R42 million.
RWANDA (CIMERWA)
Rwanda continues to see strong demand for cement in all its markets, with cement sales volumes increasing by
13% period-on-period for the five months ended August 2023. Rwanda’s cement sales continued to benefit from
its strong domestic position as demand from infrastructure projects remains robust. Cement exports were
impacted by increased competition due to new competitors. Input cost increases were not able to be fully
absorbed through pricing increases of 6%, resulting in EBITDA increasing by 9% (ZAR) and a reduction in EBITDA
margin to 29% from 32% in the comparable period.
OUTLOOK
PPC’s outlook remains unchanged and it will continue to focus its resources on improving profitability and cash
generation in South Africa while preserving its sound market positions in Zimbabwe and Rwanda. There continues
to be a need for operational efficiencies and cost containment measures to mitigate rising input costs as the
economic climate in PPC’s key South African market remains muted. As previously highlighted, PPC South Africa
is well positioned to benefit from an increase in cement demand. PPC Zimbabwe anticipates a continued recovery
and the outlook for CIMERWA in Rwanda remains positive.
PPC is participating in the RMB Morgan Stanley Big Five and Off Piste Investor Conference in Cape Town on 20
September 2023 and the presentation to be given at this conference is available on the company’s website
www.ppc.africa/investors-relations/reports/?t=presentations-allocate
Dunkeld
20 September 2023
Sponsor:
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 20-09-2023 07:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the company” or “the group”)
OPERATING UPDATE FOR THE FIVE MONTHS ENDED 31 AUGUST 2023
GROUP PERFORMANCE
For the five months ended August 2023, compared to the five months ended August 2022 (the “comparable
period”), revenue for PPC’s South Africa (“SA”) and Botswana group (previously referred to as SA obligor group),
which excludes Zimbabwe and Rwanda (CIMERWA), increased by 5%, driven by an increase of average selling
prices despite weaker cement sales volumes. Revenues from the group’s operations in both Zimbabwe and
Rwanda were materially stronger than the comparable period increasing by 58% (US$ parallel rate) and 19% (in
ZAR) respectively.
Group cement sales volumes (including Zimbabwe and Rwanda) for the five months ended August 2023 were 3%
higher than the comparable period due to exceptionally strong growth in Zimbabwe and, to a lesser extent,
Rwanda, while cement volumes continued to decline in South Africa. While the materials business continued to
see a decline in volumes, the cost reduction actions and price increases implemented resulted in EBITDA turning
from negative in the comparable period to neutral in the five months ended August 2023.
EBITDA margins for SA and Botswana cement were flat against the comparable period at 11%, as price increases
and cost initiatives enabled the margin to be maintained.
Cash generation in the SA and Botswana group was positive due to the stabilised cement EBITDA, improvement
in the materials business EBITDA and lower than anticipated capital expenditure. Cash generation includes a
dividend received from Zimbabwe in July 2023 of R76 million ($3.5 million) compared to R68 million ($4.2 million)
in the comparable period.
SOUTH AFRICA & BOTSWANA CEMENT
Cement sales volumes in South Africa and Botswana decreased by 6% period-on-period for the five months ended
August 2023. Cement sales volumes in the inland region continued their decline, albeit at a significantly lower
rate, while the coastal region saw a downturn in volumes following higher than usual rainfall and weak retail
demand.
The average selling price increased by 10% during the period under review as bi-annual increases were
implemented in January and July 2023. Notwithstanding the lower volumes, this resulted in revenue growth of
5%. EBITDA for the period also increased by 5% as margins stabilised when compared to the comparable period.
PPC will continue its efforts to counter input price inflation through price adjustments, operational efficiencies
and improved industrial performance. SA and Botswana group’s gross debt remains unchanged from 31 March
2023, but cash has increased from R131 million to R283 million, leaving net debt at R648 million at 31 August
2023 from R800 million at 31 March 2023.
The BEE transaction announced on SENS on 7 August 2023 for 10% of PPC South Africa Holdings Proprietary
Limited (“PPC SA Holdings”) is for the benefit of PPC’s South African employees. Qualifying South African
employees therefore participated in the amount paid by PPC Cement SA (Proprietary) Limited to PPC SA Holdings
to enable it to declare a dividend to PPC, which will be utilised to fund the share repurchase of R200 million
announced in June 2023.
MATERIALS
The materials business is now contributing marginally to the EBITDA of the SA and Botswana group following the
implementation of various improvement actions. Price increases across ash, aggregates and readymix together
with an improved cost structure resulted in marginally positive EBITDA compared to a negative in the comparable
period.
ZIMBABWE
The cement market in Zimbabwe continued to show growth as a result of both residential construction and
government funded infrastructure projects. PPC Zimbabwe continued to win back market share during the period
following the planned maintenance shut down in the prior year. Cement sales volumes increased 42% period on
period.
PPC Zimbabwe’s average US$ selling price increased by 12% (US$ parallel rate) during the period. The improved
volumes and pricing allowed for a meaningful improvement in EBITDA margins to 27%, a significant improvement
from 14% in the comparable period, when there was a planned shutdown.
PPC received a US$3.5 million dividend in July 2023 and anticipates an additional dividend to be declared upon
the publication of PPC Zimbabwe's interim results in November 2023.
Shareholders were previously advised that 19% of the 29.6% of PPC Zimbabwe held by various indigenisation
parties vested on 5 July 2023 and PPC Zimbabwe expected to re-purchase such shares at US$ one cent each in
accordance with the relevant agreements. The repurchase of such shares was approved at an extraordinary
general meeting of PPC Zimbabwe’s shareholders on 29 August 2023 and all such shares were subsequently re-
purchased at US$ one cent each and cancelled. Consequently, PPC now holds 90% of PPC Zimbabwe.
Economically, PPC will receive 99.5% of all dividends until the notional vendor financing of the remaining
indigenous shareholder is repaid. Once-off costs incurred by PPC in connection with the unwinding of the
indigenisation transaction amounted to R42 million.
RWANDA (CIMERWA)
Rwanda continues to see strong demand for cement in all its markets, with cement sales volumes increasing by
13% period-on-period for the five months ended August 2023. Rwanda’s cement sales continued to benefit from
its strong domestic position as demand from infrastructure projects remains robust. Cement exports were
impacted by increased competition due to new competitors. Input cost increases were not able to be fully
absorbed through pricing increases of 6%, resulting in EBITDA increasing by 9% (ZAR) and a reduction in EBITDA
margin to 29% from 32% in the comparable period.
OUTLOOK
PPC’s outlook remains unchanged and it will continue to focus its resources on improving profitability and cash
generation in South Africa while preserving its sound market positions in Zimbabwe and Rwanda. There continues
to be a need for operational efficiencies and cost containment measures to mitigate rising input costs as the
economic climate in PPC’s key South African market remains muted. As previously highlighted, PPC South Africa
is well positioned to benefit from an increase in cement demand. PPC Zimbabwe anticipates a continued recovery
and the outlook for CIMERWA in Rwanda remains positive.
PPC is participating in the RMB Morgan Stanley Big Five and Off Piste Investor Conference in Cape Town on 20
September 2023 and the presentation to be given at this conference is available on the company’s website
www.ppc.africa/investors-relations/reports/?t=presentations-allocate
Dunkeld
20 September 2023
Sponsor:
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 20-09-2023 07:30:00
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.
Availibility of Broad-Based Black Economic Empowerment Compliance Report
Availibility of Broad-Based Black Economic Empowerment Compliance Report
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”)
AVAILABILITY OF BROAD-BASED BLACK ECONOMIC EMPOWERMENT COMPLIANCE REPORT
Shareholders are hereby notified that in accordance with the Listings Requirements of the JSE
Limited, PPC’s annual compliance report in terms of section 13G(2) of the Broad-Based Black
Economic Empowerment Act 53 of 2003, read with the Broad-Based Black Economic Empowerment
Amendment Act 46 of 2013, has been published and is available on the Company’s website at
(https://www.ppc.africa/sustainability/transformation/)
Dunkeld
07 September 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 07-09-2023 05:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”)
AVAILABILITY OF BROAD-BASED BLACK ECONOMIC EMPOWERMENT COMPLIANCE REPORT
Shareholders are hereby notified that in accordance with the Listings Requirements of the JSE
Limited, PPC’s annual compliance report in terms of section 13G(2) of the Broad-Based Black
Economic Empowerment Act 53 of 2003, read with the Broad-Based Black Economic Empowerment
Amendment Act 46 of 2013, has been published and is available on the Company’s website at
(https://www.ppc.africa/sustainability/transformation/)
Dunkeld
07 September 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 07-09-2023 05:00:00
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.
Results of Annual General Meeting
Results of Annual General Meeting
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Results of Annual General Meeting (“AGM”)
Shareholders of PPC (“Shareholders”) are hereby advised that all proposed ordinary and
special resolutions contained in the Notice of the AGM dated 28 July 2023 and tabled at the
Company’s AGM held on Wednesday, 6 September 2023, were passed by the requisite
majority of votes cast by Shareholders, as reported below:
The total number of PPC ordinary shares (“Shares”) in issue that could have voted at the AGM
was 1 553 764 624 and the total number of Shares present at the AGM in person or by proxy
was 1 060 292 232, representing 68.24% of the total Shares that could have voted.
Resolutions proposed Number of Shares Percentage Percentage Percentage Percentage
voted Shares For** Against** Abstained*
voted*
Ordinary Resolution 1.1 – Re- 1,059,560,415 68.19 99.99 0.01 0.05
election of N Gobodo
Ordinary Resolution 1.2 – Re- 1,059,512,584 68.19 89.42 10.58 0.05
election of C Naude
Ordinary Resolution 1.3 – Re- 1,059,512,584 68.19 100.00 0.00 0.05
election of MR Thompson
Ordinary Resolution 2.1 – 1,059,576,467 68.19 99.99 0.01 0.05
Appointment to audit
committee – N Gobodo
Ordinary Resolution 2.2 – 1,059,530,542 68.19 97.10 2.90 0.05
Appointment to audit
committee – N Mkhondo
Ordinary Resolution 2.3 – 1,059,533,267 68.19 99.99 0.01 0.05
Appointment to audit
committee – MR Thompson
Ordinary Resolution 3 – 1,059,537,142 68.19 98.54 1.46 0.05
Appointment of external
auditor
PriceWaterhouseCoopers Inc
(PwC)
Ordinary Resolution 4.1 – Non- 1,059,270,267 68.17 81.42 18.58 0.07
binding advisory vote –
remuneration policy
Ordinary Resolution 4.2 – Non- 1,059,270,267 68.17 97.06 2.94 0.07
binding advisory vote –
remuneration implementation
report
Ordinary Resolution 5 – 1,059,516,236 68.19 99.99 0.01 0.05
Authority to implement
resolutions
Special Resolutions 1.1 – 1,059,487,328 68.19 99.98 0.02 0.05
Financial Assistance – Section
44
Special Resolutions 1.2 – 1,059,487,328 68.19 87.17 12.83 0.05
Financial Assistance – Section
45
Special Resolution 2.1 – 1,059,510,859 68.19 95.65 4.35 0.05
Remuneration – Board
chairman
Special Resolution 2.2 – 1,059,510,859 68.19 98.52 1.48 0.05
Remuneration – Non-executive
directors
Special Resolution 2.3 – Audit 1,059,510,859 68.19 99.98 0.02 0.05
and risk committee chairman
Special Resolution 2.4 – Audit 1,059,510,859 68.19 99.98 0.02 0.05
and risk committee – Members
Special Resolution 2.5 – Social 1,059,490,028 68.19 99.98 0.02 0.05
and ethics committee –
Chairman
Special Resolution 2.6 – Social 1,059,490,028 68.19 99.98 0.02 0.05
and ethics committee –
Members
Special Resolution 2.7 – 1,059,510,859 68.19 99.98 0.02 0.05
Rewards and talent committee
– Chairman
Special Resolution 2.8 – 1,059,510,859 68.19 99.98 0.02 0.05
Rewards and talent committee
– Members
Special Resolution 2.9 – 1,059,510,859 68.19 99.98 0.02 0.05
Strategy and investment
committee – Chairman
Special Resolution 2.10 – 1,059,510,859 68.19 99.98 0.02 0.05
Strategy and investment
committee – Members
Special Resolution 2.11 – 1,059,510,859 68.19 97.11 2.89 0.05
Special meetings – Chairman
Special Resolution 2.12 – 1,059,490,028 68.19 97.11 2.89 0.05
Special meetings – Members
Special Resolution 3 – General 1,059,746,063 68.21 99.96 0.04 0.04
authority to repurchase shares
* As a percentage to the total number of PPC ordinary shares in issue, being 1 553 764 624
** As a percentage to the total number of shares voted at the AGM, being 1 060 292 232,
Dunkeld
6 September 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 06-09-2023 03:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Results of Annual General Meeting (“AGM”)
Shareholders of PPC (“Shareholders”) are hereby advised that all proposed ordinary and
special resolutions contained in the Notice of the AGM dated 28 July 2023 and tabled at the
Company’s AGM held on Wednesday, 6 September 2023, were passed by the requisite
majority of votes cast by Shareholders, as reported below:
The total number of PPC ordinary shares (“Shares”) in issue that could have voted at the AGM
was 1 553 764 624 and the total number of Shares present at the AGM in person or by proxy
was 1 060 292 232, representing 68.24% of the total Shares that could have voted.
Resolutions proposed Number of Shares Percentage Percentage Percentage Percentage
voted Shares For** Against** Abstained*
voted*
Ordinary Resolution 1.1 – Re- 1,059,560,415 68.19 99.99 0.01 0.05
election of N Gobodo
Ordinary Resolution 1.2 – Re- 1,059,512,584 68.19 89.42 10.58 0.05
election of C Naude
Ordinary Resolution 1.3 – Re- 1,059,512,584 68.19 100.00 0.00 0.05
election of MR Thompson
Ordinary Resolution 2.1 – 1,059,576,467 68.19 99.99 0.01 0.05
Appointment to audit
committee – N Gobodo
Ordinary Resolution 2.2 – 1,059,530,542 68.19 97.10 2.90 0.05
Appointment to audit
committee – N Mkhondo
Ordinary Resolution 2.3 – 1,059,533,267 68.19 99.99 0.01 0.05
Appointment to audit
committee – MR Thompson
Ordinary Resolution 3 – 1,059,537,142 68.19 98.54 1.46 0.05
Appointment of external
auditor
PriceWaterhouseCoopers Inc
(PwC)
Ordinary Resolution 4.1 – Non- 1,059,270,267 68.17 81.42 18.58 0.07
binding advisory vote –
remuneration policy
Ordinary Resolution 4.2 – Non- 1,059,270,267 68.17 97.06 2.94 0.07
binding advisory vote –
remuneration implementation
report
Ordinary Resolution 5 – 1,059,516,236 68.19 99.99 0.01 0.05
Authority to implement
resolutions
Special Resolutions 1.1 – 1,059,487,328 68.19 99.98 0.02 0.05
Financial Assistance – Section
44
Special Resolutions 1.2 – 1,059,487,328 68.19 87.17 12.83 0.05
Financial Assistance – Section
45
Special Resolution 2.1 – 1,059,510,859 68.19 95.65 4.35 0.05
Remuneration – Board
chairman
Special Resolution 2.2 – 1,059,510,859 68.19 98.52 1.48 0.05
Remuneration – Non-executive
directors
Special Resolution 2.3 – Audit 1,059,510,859 68.19 99.98 0.02 0.05
and risk committee chairman
Special Resolution 2.4 – Audit 1,059,510,859 68.19 99.98 0.02 0.05
and risk committee – Members
Special Resolution 2.5 – Social 1,059,490,028 68.19 99.98 0.02 0.05
and ethics committee –
Chairman
Special Resolution 2.6 – Social 1,059,490,028 68.19 99.98 0.02 0.05
and ethics committee –
Members
Special Resolution 2.7 – 1,059,510,859 68.19 99.98 0.02 0.05
Rewards and talent committee
– Chairman
Special Resolution 2.8 – 1,059,510,859 68.19 99.98 0.02 0.05
Rewards and talent committee
– Members
Special Resolution 2.9 – 1,059,510,859 68.19 99.98 0.02 0.05
Strategy and investment
committee – Chairman
Special Resolution 2.10 – 1,059,510,859 68.19 99.98 0.02 0.05
Strategy and investment
committee – Members
Special Resolution 2.11 – 1,059,510,859 68.19 97.11 2.89 0.05
Special meetings – Chairman
Special Resolution 2.12 – 1,059,490,028 68.19 97.11 2.89 0.05
Special meetings – Members
Special Resolution 3 – General 1,059,746,063 68.21 99.96 0.04 0.04
authority to repurchase shares
* As a percentage to the total number of PPC ordinary shares in issue, being 1 553 764 624
** As a percentage to the total number of shares voted at the AGM, being 1 060 292 232,
Dunkeld
6 September 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 06-09-2023 03:00:00
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.
Appointment of Matias Cardarelli as Chief Executive Officer of PPC
Appointment of Matias Cardarelli as Chief Executive Officer of PPC
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”)
APPOINTMENT OF MATIAS CARDARELLI AS CHIEF EXECUTIVE OFFICER OF PPC
Following the leadership update provided in June 2023, the board of directors of PPC (“the Board”) is pleased to
announce the appointment of Mr Matias Cardarelli as Chief Executive Officer of PPC. His appointment follows an
extensive search for a suitable successor for Mr Roland van Wijnen, whose contract expired on 31 August 2023
and was extended to 31 December 2023 to facilitate an appropriate handover and transition.
Mr Cardarelli has a remarkable track record in the cement industry, across multiple emerging markets having
importantly spent the last five years in South Africa as CEO and Chairman of Natal Portland Cement (NPC) part of
Intercement group. During his tenure at NPC he successfully transformed the organisation by improving
efficiencies, boosting margins and EBITDA, and increasing cash generation. With this deep understanding of the
local industry and his proven leadership skillset, Mr Cardarelli will play a pivotal role in continuing to drive PPC’s
growth, improve profitability and enhance returns.
Prior to moving to South Africa in 2019 to join NPC, Mr Cardarelli led the operational and financial turnaround of
Amreyah Cement in Egypt and scaling-up of Yguazu Cementos in Paraguay. Following the onset of Covid 19 and
the emergence of a new entrant in the Mozambican cement market, Mr Cardarelli’s portfolio was expanded to
include Cimentos de Mozambique, where he successfully implemented an operational and commercial plan to
return the company to profitability.
About his appointment, Mr Cardarelli says, “I am excited to be joining PPC at this important time in its journey
and highly value the trust placed in me by the Board. I equally look forward to working together with the PPC
team as we write this iconic company’s next chapter. In the five years we have lived here my family and I have
come to deeply love South Africa and her people. I look forward to contributing positively to both PPC and the
country.”
The Board welcomes Mr Cardarelli and looks forward to his leadership and contribution to the company’s path
to sustainable profitability. Mr Cardarelli has signed a four-year contract which is subject to obtaining the
necessary work permit and is expected to start during the last quarter of 2023.
The Board wishes to thank outgoing CEO Roland van Wijnen. Under Roland's leadership, PPC has undergone a
strategic repositioning through successfully implementing a restructuring of its debt, realigning its governance
and reporting procedures and re-focusing its growth objectives in Southern Africa whilst navigating the challenges
posed by Covid-19.
Sandton
4 September 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 04-09-2023 08:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”)
APPOINTMENT OF MATIAS CARDARELLI AS CHIEF EXECUTIVE OFFICER OF PPC
Following the leadership update provided in June 2023, the board of directors of PPC (“the Board”) is pleased to
announce the appointment of Mr Matias Cardarelli as Chief Executive Officer of PPC. His appointment follows an
extensive search for a suitable successor for Mr Roland van Wijnen, whose contract expired on 31 August 2023
and was extended to 31 December 2023 to facilitate an appropriate handover and transition.
Mr Cardarelli has a remarkable track record in the cement industry, across multiple emerging markets having
importantly spent the last five years in South Africa as CEO and Chairman of Natal Portland Cement (NPC) part of
Intercement group. During his tenure at NPC he successfully transformed the organisation by improving
efficiencies, boosting margins and EBITDA, and increasing cash generation. With this deep understanding of the
local industry and his proven leadership skillset, Mr Cardarelli will play a pivotal role in continuing to drive PPC’s
growth, improve profitability and enhance returns.
Prior to moving to South Africa in 2019 to join NPC, Mr Cardarelli led the operational and financial turnaround of
Amreyah Cement in Egypt and scaling-up of Yguazu Cementos in Paraguay. Following the onset of Covid 19 and
the emergence of a new entrant in the Mozambican cement market, Mr Cardarelli’s portfolio was expanded to
include Cimentos de Mozambique, where he successfully implemented an operational and commercial plan to
return the company to profitability.
About his appointment, Mr Cardarelli says, “I am excited to be joining PPC at this important time in its journey
and highly value the trust placed in me by the Board. I equally look forward to working together with the PPC
team as we write this iconic company’s next chapter. In the five years we have lived here my family and I have
come to deeply love South Africa and her people. I look forward to contributing positively to both PPC and the
country.”
The Board welcomes Mr Cardarelli and looks forward to his leadership and contribution to the company’s path
to sustainable profitability. Mr Cardarelli has signed a four-year contract which is subject to obtaining the
necessary work permit and is expected to start during the last quarter of 2023.
The Board wishes to thank outgoing CEO Roland van Wijnen. Under Roland's leadership, PPC has undergone a
strategic repositioning through successfully implementing a restructuring of its debt, realigning its governance
and reporting procedures and re-focusing its growth objectives in Southern Africa whilst navigating the challenges
posed by Covid-19.
Sandton
4 September 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 04-09-2023 08:30:00
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.
Employment Equity Transaction
Employment Equity Transaction
PPC Ltd
(Incorporated in the Republic of South Africa)
(Registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(“PPC”)
EMPLOYEE EQUITY TRANSACTION
1. INTRODUCTION AND RATIONALE
Shareholders are advised that PPC has concluded an equity transaction (“Transaction”) for the benefit
of qualifying employees in the employ of PPC’s subsidiaries operating in South Africa. In terms of this
Transaction, a newly formed PPC Employee Share Ownership Trust (“the Trust”) has purchased 10%
of PPC South Africa Holdings Proprietary Limited (“PPC SA Holdings”) share capital (“the Trust Shares”)
from PPC for a purchase price of R380 million.
The Trust seeks to recognise and reward employees for the valuable role that they play in PPC’s
success and demonstrate the company’s commitment to achieving South Africa’s equity ownership
targets. All employees not currently participating in PPC’s long-term incentive program will be eligible
and participation will be weighted in favour of historically disadvantaged individuals, in line with the
spirit of Broad-based Black Economic Empowerment (“B-BBEE”). The Trust has been structured with
the objective of providing an opportunity for qualifying employees to benefit for the duration of their
employment and replaces previous equity ownership schemes which have since been unwound.
The Transaction will enhance PPC’s B-BBEE status and is expected to improve the company’s rating to
level 1.
Group CEO, Roland van Wijnen, commented, “PPC has been built upon the shoulders of its employees
and this Transaction provides a meaningful way of rewarding those in South Africa who do not
participate in PPC’s long-term incentive plan to share in the creation of shareholder value. We are
pleased that the terms of the Transaction are such that it stands to benefit employees for many years
to come”.
PPC SA Holdings is the holding company through which PPC conducts its South African cement and
materials businesses (aggregates, ash and readymix). As part of the Transaction, PPC’s shareholding
in PPC Group Services Proprietary Limited (the “Founder” or “Group Services”), which provides
administrative, information technology and treasury services to the South African group, will also be
transferred into PPC SA Holdings.
The board of directors of PPC has approved the provision by PPC of a loan of R380 million and an
additional amount of R975,000 in respect of securities transfer tax payable in connection with the
Transaction to the Trust to enable the Trust to discharge the purchase consideration for the Trust
Shares in full (the “Loan”). The Loan will be repaid by the Trust from 75% of dividends that it will
receive from its shareholding in PPC SA Holdings, with the remaining 25% being capable of distribution
to the Trust’s beneficiaries. The dividends that will be shared with the Trust will be generated by
PPC’s South African operations, as more fully outlined below.
The Trust will have one independent trustee appointed by the Founder and four additional trustees
appointed by the beneficiaries of the Trust, employed by the relevant PPC South African group
companies.
2. PURCHASE PRICE AND SATISFACTION THEREOF
The purchase price of R380 million for the acquisition by the Trust of the Trust Shares will be satisfied
in full by the advance of the Loan by PPC to the Trust on the closing date, as described in paragraph 3
below. The Loan accrues interest at the South African prime rate of interest and has no final
repayment date.
The Loan will be repaid through the future dividends declared by PPC SA Holdings to which the Trust
will be entitled as a 10% shareholder in PPC SA Holdings. All dividends paid from PPC SA Holdings to
the Trust will be utilised as follows:
- 25% to be distributed to all qualifying beneficiaries of the Trust; and
- 75% to be distributed to PPC (less any tax to be withheld) towards repayment of the Loan.
For the foreseeable future, until such time as the Loan, including capitalised interest, has been fully
repaid, qualifying beneficiaries will effectively receive 2.5% of any dividends declared by PPC SA
Holdings.
Following the repayment of the Loan in full, qualifying employees will receive 10% of the dividends
declared by PPC SA Holdings.
The Founder will cover the costs of operating the Trust.
3. CONDITIONS PRECEDENT AND CLOSING DATE OF THE TRANSACTION
There are no outstanding conditions precedent to the Transaction agreements executed on 4 August
2023 and therefore the Transaction will close on 4 August 2023, in accordance with the terms of the
Transaction agreements.
4. WARRANTIES AND OTHER SIGNIFICANT TERMS OF THE AGREEMENT
The Transaction agreements contain reciprocal warranties by each of PPC, PPC SA Holdings and the
Trust in favour of each other which are standard for a transaction of this nature and certain additional
warranties by PPC in relation to ownership of the Trust Shares.
5. FINANCIAL INFORMATION
The book value of the net assets of PPC SA Holdings as at 31 March 2023, being the date of the latest
audited company financial statements of PPC SA Holdings, was R3.772 million. The net loss after tax
of PPC SA Holdings for the financial year ended 31 March 2023 was R552,343.
The book value of the net liabilities of Group Services as at 31 March 2023, amounted to R286 million
and Group Services made a loss after tax of R20 million for the year ended 31 March 2023.
The financial information on which the above is based, has been prepared in accordance with
International Financial Reporting Standards.
PPC will continue to consolidate 100% of PPC SA Holdings and the 2.5% of dividends received by
qualifying employees (as detailed in paragraph 2 above) will be disclosed as an additional salary
expense in the relevant South African legal entity. The gross debt of the consolidated South African
operations will therefore not be affected by the Transaction.
6. CLASSIFICATION OF THE TRANSACTION
The Transaction qualifies as a category 2 transaction in terms of the JSE Limited Listings Requirements.
None of the Trust beneficiaries or trustees are related parties as defined in the JSE Listings
Requirements.
Sandton
7 August 2023
Sponsor and Corporate Advisor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 07-08-2023 07:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(“PPC”)
EMPLOYEE EQUITY TRANSACTION
1. INTRODUCTION AND RATIONALE
Shareholders are advised that PPC has concluded an equity transaction (“Transaction”) for the benefit
of qualifying employees in the employ of PPC’s subsidiaries operating in South Africa. In terms of this
Transaction, a newly formed PPC Employee Share Ownership Trust (“the Trust”) has purchased 10%
of PPC South Africa Holdings Proprietary Limited (“PPC SA Holdings”) share capital (“the Trust Shares”)
from PPC for a purchase price of R380 million.
The Trust seeks to recognise and reward employees for the valuable role that they play in PPC’s
success and demonstrate the company’s commitment to achieving South Africa’s equity ownership
targets. All employees not currently participating in PPC’s long-term incentive program will be eligible
and participation will be weighted in favour of historically disadvantaged individuals, in line with the
spirit of Broad-based Black Economic Empowerment (“B-BBEE”). The Trust has been structured with
the objective of providing an opportunity for qualifying employees to benefit for the duration of their
employment and replaces previous equity ownership schemes which have since been unwound.
The Transaction will enhance PPC’s B-BBEE status and is expected to improve the company’s rating to
level 1.
Group CEO, Roland van Wijnen, commented, “PPC has been built upon the shoulders of its employees
and this Transaction provides a meaningful way of rewarding those in South Africa who do not
participate in PPC’s long-term incentive plan to share in the creation of shareholder value. We are
pleased that the terms of the Transaction are such that it stands to benefit employees for many years
to come”.
PPC SA Holdings is the holding company through which PPC conducts its South African cement and
materials businesses (aggregates, ash and readymix). As part of the Transaction, PPC’s shareholding
in PPC Group Services Proprietary Limited (the “Founder” or “Group Services”), which provides
administrative, information technology and treasury services to the South African group, will also be
transferred into PPC SA Holdings.
The board of directors of PPC has approved the provision by PPC of a loan of R380 million and an
additional amount of R975,000 in respect of securities transfer tax payable in connection with the
Transaction to the Trust to enable the Trust to discharge the purchase consideration for the Trust
Shares in full (the “Loan”). The Loan will be repaid by the Trust from 75% of dividends that it will
receive from its shareholding in PPC SA Holdings, with the remaining 25% being capable of distribution
to the Trust’s beneficiaries. The dividends that will be shared with the Trust will be generated by
PPC’s South African operations, as more fully outlined below.
The Trust will have one independent trustee appointed by the Founder and four additional trustees
appointed by the beneficiaries of the Trust, employed by the relevant PPC South African group
companies.
2. PURCHASE PRICE AND SATISFACTION THEREOF
The purchase price of R380 million for the acquisition by the Trust of the Trust Shares will be satisfied
in full by the advance of the Loan by PPC to the Trust on the closing date, as described in paragraph 3
below. The Loan accrues interest at the South African prime rate of interest and has no final
repayment date.
The Loan will be repaid through the future dividends declared by PPC SA Holdings to which the Trust
will be entitled as a 10% shareholder in PPC SA Holdings. All dividends paid from PPC SA Holdings to
the Trust will be utilised as follows:
- 25% to be distributed to all qualifying beneficiaries of the Trust; and
- 75% to be distributed to PPC (less any tax to be withheld) towards repayment of the Loan.
For the foreseeable future, until such time as the Loan, including capitalised interest, has been fully
repaid, qualifying beneficiaries will effectively receive 2.5% of any dividends declared by PPC SA
Holdings.
Following the repayment of the Loan in full, qualifying employees will receive 10% of the dividends
declared by PPC SA Holdings.
The Founder will cover the costs of operating the Trust.
3. CONDITIONS PRECEDENT AND CLOSING DATE OF THE TRANSACTION
There are no outstanding conditions precedent to the Transaction agreements executed on 4 August
2023 and therefore the Transaction will close on 4 August 2023, in accordance with the terms of the
Transaction agreements.
4. WARRANTIES AND OTHER SIGNIFICANT TERMS OF THE AGREEMENT
The Transaction agreements contain reciprocal warranties by each of PPC, PPC SA Holdings and the
Trust in favour of each other which are standard for a transaction of this nature and certain additional
warranties by PPC in relation to ownership of the Trust Shares.
5. FINANCIAL INFORMATION
The book value of the net assets of PPC SA Holdings as at 31 March 2023, being the date of the latest
audited company financial statements of PPC SA Holdings, was R3.772 million. The net loss after tax
of PPC SA Holdings for the financial year ended 31 March 2023 was R552,343.
The book value of the net liabilities of Group Services as at 31 March 2023, amounted to R286 million
and Group Services made a loss after tax of R20 million for the year ended 31 March 2023.
The financial information on which the above is based, has been prepared in accordance with
International Financial Reporting Standards.
PPC will continue to consolidate 100% of PPC SA Holdings and the 2.5% of dividends received by
qualifying employees (as detailed in paragraph 2 above) will be disclosed as an additional salary
expense in the relevant South African legal entity. The gross debt of the consolidated South African
operations will therefore not be affected by the Transaction.
6. CLASSIFICATION OF THE TRANSACTION
The Transaction qualifies as a category 2 transaction in terms of the JSE Limited Listings Requirements.
None of the Trust beneficiaries or trustees are related parties as defined in the JSE Listings
Requirements.
Sandton
7 August 2023
Sponsor and Corporate Advisor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 07-08-2023 07:30:00
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.
2023/07/28
Notice of Annual General Meeting and Publication of Integrated Annual Report
View ArticleNotice of Annual General Meeting and Publication of Integrated Annual Report
Notice of Annual General Meeting and Publication of Integrated Annual Report
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
NOTICE OF ANNUAL GENERAL MEETING AND PUBLICATION OF INTEGRATED ANNUAL REPORT
Shareholders are advised that the Company’s integrated annual report (“IAR”) was published and that
the Company’s notice of annual general meeting (“AGM”) was distributed to shareholders together
with a copy of its summarised audited consolidated annual financial statements for the year ended 31
March 2023 today, 28 July 2023.
Electronic copies of the IAR will be available on the Company´s website, at
https://www.ppc.africa/investors-relations/reports/?t=year-end; and
the notice of AGM will be available on the Company’s website, at
https://www.ppc.africa/investors-relations/reports/?t=agm-notices
as from today, 28 July 2023. Copies of the IAR and AGM notice may also be requested from the
company secretary at kevin.ross@ppc.co.za.
NOTICE OF AGM
Notice is hereby given that the 131st AGM of the shareholders of the Company will be held physically,
in person at the company’s offices, First floor, 5 Parks Boulevard, Oxford Parks, Dunkeld,
Johannesburg, 2196, South Africa and virtually through electronic participation, at 12:00 on
Wednesday, 6 September 2023, to consider and, if deemed fit, to pass with or without modification,
all of the ordinary and special resolutions set out in the notice of AGM.
The salient dates and times applicable to the 131st AGM, are set out below:
2023
Notice to attend PPC’s AGM on Friday, 28 July
Record date to receive the notice of AGM Friday, 21 July
Last day to trade to be recorded in the register to vote at the AGM Tuesday, 29 August
Record date to be eligible to vote at the AGM (voting record date) Friday, 1 September
Last day to lodge forms of proxy for the AGM by 12:00 Monday, 4 September
AGM to be held at 12:00 Wednesday, 6 September
Results of AGM released via stock exchange news service (SENS) on Wednesday, 6 September
1. The above dates and times are subject to amendment. Any such amendment will be released via
SENS.
2. All times given are local times in South Africa.
3. Any forms of proxy not delivered to the meeting secretaries by 12:00 on Monday, 4 September
2023 may be emailed to proxy@computershare.co.za and will be handed to the chair of the AGM
immediately before the appointed proxy exercises any of the shareholder’s rights at the AGM.
Sandton
28 July 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 28-07-2023 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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
NOTICE OF ANNUAL GENERAL MEETING AND PUBLICATION OF INTEGRATED ANNUAL REPORT
Shareholders are advised that the Company’s integrated annual report (“IAR”) was published and that
the Company’s notice of annual general meeting (“AGM”) was distributed to shareholders together
with a copy of its summarised audited consolidated annual financial statements for the year ended 31
March 2023 today, 28 July 2023.
Electronic copies of the IAR will be available on the Company´s website, at
https://www.ppc.africa/investors-relations/reports/?t=year-end; and
the notice of AGM will be available on the Company’s website, at
https://www.ppc.africa/investors-relations/reports/?t=agm-notices
as from today, 28 July 2023. Copies of the IAR and AGM notice may also be requested from the
company secretary at kevin.ross@ppc.co.za.
NOTICE OF AGM
Notice is hereby given that the 131st AGM of the shareholders of the Company will be held physically,
in person at the company’s offices, First floor, 5 Parks Boulevard, Oxford Parks, Dunkeld,
Johannesburg, 2196, South Africa and virtually through electronic participation, at 12:00 on
Wednesday, 6 September 2023, to consider and, if deemed fit, to pass with or without modification,
all of the ordinary and special resolutions set out in the notice of AGM.
The salient dates and times applicable to the 131st AGM, are set out below:
2023
Notice to attend PPC’s AGM on Friday, 28 July
Record date to receive the notice of AGM Friday, 21 July
Last day to trade to be recorded in the register to vote at the AGM Tuesday, 29 August
Record date to be eligible to vote at the AGM (voting record date) Friday, 1 September
Last day to lodge forms of proxy for the AGM by 12:00 Monday, 4 September
AGM to be held at 12:00 Wednesday, 6 September
Results of AGM released via stock exchange news service (SENS) on Wednesday, 6 September
1. The above dates and times are subject to amendment. Any such amendment will be released via
SENS.
2. All times given are local times in South Africa.
3. Any forms of proxy not delivered to the meeting secretaries by 12:00 on Monday, 4 September
2023 may be emailed to proxy@computershare.co.za and will be handed to the chair of the AGM
immediately before the appointed proxy exercises any of the shareholder’s rights at the AGM.
Sandton
28 July 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 28-07-2023 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.
2023/06/26
Summarised Audited Consolidated Financial Statements for the Year Ended 31 March 2023
View ArticleSummarised Audited Consolidated Financial Statements for the Year Ended 31 March 2023
Click below to view full PDF article
https://senspdf.jse.co.za/documents/2023/jse/isse/ppc/FY2023.pdf
Summarised Audited Consolidated Financial Statements for the Year Ended 31 March 2023
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(PPC or the company or the group)
Short-form announcement summarised consolidated financial statements for the year ended, 31 March 2023
DRIVING PERFORMANCE TO SUSTAIN OUR PURPOSE
Roland van Wijnen, CEO, said: Despite challenging times, I am pleased that we further reduced our debt and are in a
strong financial position to weather the local economic cycle. Increased demand through an enhanced infrastructure
programme and a stronger economic climate is required to enable us to more effectively utilise the capacity available
in our primary market. We therefore remain hopeful that the South African government will roll out its infrastructure
development plans and protect the local cement market through the introduction of blanket import tariffs. Strong cash
dividends were received from both Zimbabwe and CIMERWA (Rwanda) during the period under review. PPC will start
repurchasing up to R200 million worth of its own shares as a distribution to shareholders. I thank my colleagues for
their commitment and hard work in ensuring our continued service to our valued customers as well as to each other.
SNAPSHOT OF PERFORMANCE FROM CONTINUING OPERATIONS
- Group revenue marginally up to R9 902 million (FY22: R9 882)
on weak macro environment in South Africa
- Group EBITDA margin reduced 1,4% points to 13,7% (FY22: 15,1%)
as input inflation kept under control
- Group HEPS loss of 8 cents (FY22: loss of 3 cents)
- Group EPS loss of 16 cents (FY22: loss of 5 cents)
A distribution of R200 million through a share repurchase programme was approved by the board as target leverage
levels reached
Group results excluding PPC Zimbabwe and Rwanda (SA obligor)
- Revenue, excluding dividends increased 1% to R6 586 million (FY22: R6 501 million)
- EBITDA margins declined to 8,7% (FY22: 11,8%)
- Net debt for the SA obligor group improved by R263 million
PPC Zimbabwe
- Slower than anticipated recovery after planned kiln shutdown while market remains sound but
hyperinflation materially impacts reported results
- Dividends of R147 million (US$8,8 million) received by the group (FY22: R91 million or US$6,2 million)
CIMERWA Rwanda
- Volume growth of 1% in line with expectations but EBITDA still increased 31%
and margins increased marginally to 29%
- Inaugural dividend of R79 million (US$4,3 million) received by the group in March 2023
GROUP PERFORMANCE - CONTINUING OPERATIONS
PPC continues to focus on sound capital allocation principles, maximising cash generation from its South African and
Botswana businesses (the SA obligor group) and extracting cash from its investments in Zimbabwe and Rwanda
(the International Businesses). Historically, dividends from Zimbabwe have contributed to the deleveraging of the group's
South African balance sheet. However, in FY23, the SA obligor group has reached an optimal level of gearing that allows
for the implementation of a new distribution policy. This policy is based on distributing an amount of cash so that the
12-month backward and expected 12-month forward SA obligor group gross debt to EBITDA is at a ratio of between 1.3 times
to 1.5 times. A new distribution in the form of a share repurchase of up to R200 million was approved by the board.
The SA obligor group revenue for the year ended 31 March 2023, excluding dividends from the International Businesses,
increased by 1,31% to R6 586 million (March 2022: R6 501 million), driven primarily by the 1,7% increase in revenue
in South Africa and Botswana Cement. While cement volumes remained under pressure, declining 5,8% on the prior year,
average price increases of 8,0% over the period ensured revenue remained positive, albeit slightly (0,5%) negatively
affected by adverse product mix. Including the impact of the International Businesses, which contributed 33%
(March 2022: 34%), total group revenue was flat at R9 902 million (March 2022: R9 882 million). The 29% increase in
revenue from CIMERWA (Rwanda) was more than offset by the reduced contribution of PPC Zimbabwe as reported sales in
ZAR declined by 19%.
Excluding the International Businesses' cost of sales and administration and other operating expenditure for both
periods, such costs in the SA obligor group increased by 4% year-on-year. Including the International Businesses, cost
of sales and administration and other operating expenditure was flat at R9 425 million (March 2022: R9 409 million).
Zimbabwe's costs decreased by 23%, which more than offset CIMERWA's cost increases (in rand) of 26%.
SA obligor group EBITDA, excluding dividends from the International Businesses, decreased by 26% to R570 million
(March 2022: R768 million) and EBITDA margins declined to 8,7% (March 2022: 11,8%) as, notwithstanding sound cost
containment measures implemented, cost increases remain higher than price increases implemented, resulting in
compressed margins.
Including the dividends received from the International Businesses, the SA obligor group's EBITDA amounted to
R804 million (March 2022: R863 million), resulting in gross debt to EBITDA ratio of 1.2 times, thereby facilitating
the R200 million distribution to shareholders.
Including the EBITDA of the International Businesses, group EBITDA declined by 9% to R1 358 million
(March 2022: R1 493 million). The 31% increase in CIMERWA's EBITDA was partially offset by a reduction in PPC
Zimbabwe's contribution of 7%.
Fair value and foreign exchange movements resulted in a gain of R69 million (March 2022: R2 million), mainly due to the
significant depreciation of the Zimbabwean dollar against the United States dollar of 553% (March 2022: 69%) which
resulted in foreign exchange gains on net monetary items.
Impairments of R145 million (March 2022: R38 million) were taken during the year under review, the largest item being
R84 million. This related to an impairment at group of a portion of the premium paid on the acquisition of CIMERWA. Of
the R84 million, R42 million related to the impairment of goodwill.
Finance costs decreased by 28% to R172 million (March 2022: R240 million), due to the successful de-gearing of the
group with gross debt declining from R1 586 million in March 2022 to R1 189 million in March 2023.
During the current year, the group realised a net profit of R23 million (March 2022: nil) from the disposal of the
previously equity-accounted investment in Habesha.
Notwithstanding group profit before tax declining to R93 million (March 2022: R186 million), taxation increased 17% to
R242 million (March 2022: R207 million). The current year tax charge is significantly negatively impacted by non-cash
items of R195 million (March 2022: R56 million). These non-cash items are primarily due to the SA obligor group not
recognising deferred tax assets and PPC Zimbabwe hyperinflation impacts.
Basic earnings per share (EPS) from continuing operations decreased from a loss of 5 cents to a loss of 16 cents.
Headline earnings per share (HEPS) from continuing operations decreased from a loss of 3 cents to a loss of 8 cents.
This is primarily due to the impact of the following:
- Significant non-cash tax items in the current year of R195 million (March 2022: R56 million), relating primarily to
hyperinflation accounting and deferred tax not recognised on losses
- Lower earnings generation in the SA obligor group and PPC Zimbabwe
- The positive impact of the strong CIMERWA performance not flowing fully to EPS and HEPS given the operations are 51%
held by PPC.
Consolidated net cash inflow before financing activities from continuing operations remains positive at R392 million
(March 2022: R675 million) as cash generation remains a priority.
Capital investment remained disciplined and reduced to R415 million (March 2022: R553 million). The reduction in spend
was largely attributable to South Africa and Botswana Cement (R53 million reduction) and Zimbabwe (R69 million reduction).
The SA obligor group's gross debt (excluding capitalised transaction costs) declined from R1 210 million at 31 March 2022
to R931 million at 31 March 2023 in accordance with the debt repayment terms. Unrestricted cash holdings at 31 March 2023
were R131 million (March 2022: R147 million), leaving net debt at R800 million (31 March 2022: R1 063 million).
Zimbabwe is debt-free and had unrestricted cash holdings at 31 March 2023 of R118 million. The cash balance declined
from R353 million at 30 September 2022 due to a dividend of US$5 million paid in November 2022 and lower US$ balances
at the year-end with the cash holdings in ZWL depreciating significantly against the rand. Some 70% of PPC Zimbabwe's
cash is held in hard currencies.
CIMERWA's gross debt declined to R265 million (March 2022: R383 million). Cash also declined from R221 million at
31 March 2022 to R160 million at 31 March 2023, due to the dividend paid in March of R172 million.
SOUTH AFRICA AND BOTSWANA CEMENT
The coastal region continued to see good demand for cement and imports remained relatively muted. The growth in sales
volumes in the coastal region was offset by continued weak trading conditions in the inland region, leaving overall
cement sales volumes in South Africa and Botswana down 5,8% compared to the prior year.
The coastal region saw an increase in cement volumes due to increased industrial construction activity and specific
government projects as well as improved retail sales. Cement imports into the Western Cape remained low during the
period due to global supply chain constraints and a weaker rand.
There was a decline in demand in the larger inland region in both the retail and the construction segments, with the
construction sector being supported to some extent by the building of distribution centres and housing estates.
During the year under review, PPC continued to increase its selling prices on a bi-annual basis and achieved an average
selling price increase of 8.0%. For the year ended 31 March 2023, PPC South Africa and Botswana Cement revenue increased
by 1,7% to R5 509 million (March 2022: R5 415 million), marginally negatively affected by 0,5% due to adverse product mix.
High input cost inflation was experienced during the year, with variable production costs per tonne increasing by some
14% compared to the prior period. Cost mitigation measures reduced the extent of the impact of the high input costs,
with fixed administration and overhead costs decreasing by some 1,4% year-on-year. Overall, total costs increased by 4%
compared to FY22.
EBITDA decreased to R674 million (March 2022: R825 million) with a margin of 11,7% (March 2022: 14,5%) as selling price
increases continued to lag cost increases.
AGGREGATES, READYMIX AND ASH
Readymix volumes decreased by 4%, while aggregates volumes decreased by 22% compared to the prior year. Fly ash sales
volumes declined by 18%. Overall revenue for the materials division decreased by 1% to R1 077 million (March 2022:
R1 086 million), due to the largest contributor to the materials business, readymix, experiencing relatively stable
demand but an increase in selling prices which enabled its revenues to grow by 6%. Overall, the materials businesses
incurred an EBITDA loss of R65 million (March 2022: R41 million profit). Measures were implemented prior to 31 March 2023
to restructure, in particular, the aggregates business to decrease absolute fixed costs and convert certain fixed costs
to variable costs as part of the turnaround efforts for the overall materials businesses.
INTERNATIONAL
Zimbabwe
The impact of the planned extended kiln shutdown in the first half of the year for special maintenance and the
installation of the bag house and bucket elevator resulted in limited clinker production and ultimately restricted the
volumes of cement sold. In addition, plant stoppages due to power interruptions negatively affected performance. Volumes
year-on-year were down 16% despite robust cement demand from concrete product manufacturers and government-funded
infrastructure projects. Government reduced the number of import licences in January 2023, which will support the recovery
of PPC's market share.
PPC Zimbabwe was able to implement US$ price increases to recover input cost inflation. Further, PPC Zimbabwe continued
to generate adequate sales in foreign currency to sustain its operational requirements during the period and pay
dividends. PPC received US$8,9 million in dividends during the year totalling R147 million net of withholding tax
(compared to US$6,2 million in the prior year).
Revenue decreased by 19% to R1 753 million (March 2022: R2 172 million). EBITDA declined by 7% to R365 million
(March 2022: R393 million) in ZAR, but margins, due to price increases increased to 20,8% (March 2022: 18,1%).
Rwanda
CIMERWA's cement sales volumes increased by 1% for the full year, in line with expectations given the planned kiln shut
down in November 2022. The regional demand remains strong as both the domestic and cement export markets, particularly
in the eastern Democratic Republic of Congo, have shown growth in demand. While competition is on the increase, as new
production capacity comes online in the region, CIMERWA is expected to remain in a strong position to benefit from the
continued growth of cement demand in its core markets.
Revenue for the twelve months ended 31 March 2023 increased by 29% to R1 563 million (March 2022: R1 209 million),
assisted by the 9% depreciation of the rand. In local currency, revenue increased by 19%, mainly due to average price
increases in local currency of 18% to offset cost inflation. EBITDA increased by 31% to R447 million (March 2022: R341
million) and EBITDA margins increased marginally to 28,6% (March 2022: 28,2%) as the contribution of premium quality
product increased and CIMERWA's sales to the US$ priced regional market increased.
LEADERSHIP
Following an extensive search process, the board is in the final stages of appointing a suitable successor for Roland,
whose employment contract was scheduled to come to an end on 31 August 2023. The board will communicate to the market
in due course. To ensure an orderly handover, the board has agreed with Roland to extend his contract to 31 December
2023.
OUTLOOK
PPC will continue to focus its resources on Southern Africa while preserving its sound market position in Rwanda. The
group has defined a series of value-accretive projects to reduce CO2 emissions and future proof the business. There is
a need for further operational efficiencies and cost containment measures to mitigate rising input costs as the economic
climate in its key South African market remains muted and competition remains high across the portfolio. Without a
significant increase in infrastructure spending and South African gross domestic product, South Africa's cement demand is
expected to remain subdued. PPC South Africa is well positioned to benefit from an increase in cement demand with additional
capacity readily available to capture an upswing in demand without additional capital expenditure required. PPC Zimbabwe
anticipates a continued recovery and the outlook for CIMERWA in Rwanda remains positive.
Chairman Chief executive officer Chief financial officer
PJ Moleketi R van Wijnen B Berlin
Sandton
26 June 2023
Audit opinion
The audited consolidated annual financial statements were audited by PwC, who expressed an unmodified audit opinion in
terms of the International Standards on Auditing, highlighting key audit matters in their report. A copy of the auditor?s
report on the audited consolidated annual financial statements is available on the following link:
https://www.ppc.africa/investors-relations/reports/?t=final-results-reports.
The auditor's report does not necessarily report on all of the information contained in this announcement, including
the outlook. 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 the auditor?s report together with the accompanying financial information from PPC?s
website or registered office.
SHORT-FORM ANNOUNCEMENT
This short-form announcement of the 2023 AFS is extracted from the financial information in the 2023 AFS and the
Summarised AFS and does not contain full or complete details. This short-form announcement is the responsibility of
the board of directors of PPC. The information in this short-form announcement has been extracted from audited
information but is not itself audited.
Any investment decisions by investors and/shareholders should be based on a consideration of the Summarised AFS, as a
whole, as published on SENS and the issuer's website as follows:
PPC's' website: https://www.ppc.africa/investors-relations/reports?t=final-results-reports&y=2023 and JSE's website:
https://senspdf.jse.co.za/documents/2023/jse/isse/PPC/FY2023.pdf
Copies of the 2023 AFS, the Summarised AFS and the auditors unmodified audit opinion thereon are also available for
inspection at the company's registered office (by appointment) and may be requested from the Company Secretary
Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours. (A live and recorded video webcast of the results
presentation will be held today at 11:00 am and can be accessed via this link: https://www.corpcam.com/PPC26062023)
Registered office: 148 Katherine Street, Sandton, South Africa (PO Box 787416, Sandton, 2146, South Africa)
DIRECTORS: PJ Moleketi (chair), R van Wijnen* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo, CH Naude,
D Smith, MR Thompson
*Dutch **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
Financial Communications Advisor: Instinctif Partners, Louise Fortuin
Mobile: +27 71 605 4294
Date: 26-06-2023 07:15:00
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.
https://senspdf.jse.co.za/documents/2023/jse/isse/ppc/FY2023.pdf
Summarised Audited Consolidated Financial Statements for the Year Ended 31 March 2023
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(PPC or the company or the group)
Short-form announcement summarised consolidated financial statements for the year ended, 31 March 2023
DRIVING PERFORMANCE TO SUSTAIN OUR PURPOSE
Roland van Wijnen, CEO, said: Despite challenging times, I am pleased that we further reduced our debt and are in a
strong financial position to weather the local economic cycle. Increased demand through an enhanced infrastructure
programme and a stronger economic climate is required to enable us to more effectively utilise the capacity available
in our primary market. We therefore remain hopeful that the South African government will roll out its infrastructure
development plans and protect the local cement market through the introduction of blanket import tariffs. Strong cash
dividends were received from both Zimbabwe and CIMERWA (Rwanda) during the period under review. PPC will start
repurchasing up to R200 million worth of its own shares as a distribution to shareholders. I thank my colleagues for
their commitment and hard work in ensuring our continued service to our valued customers as well as to each other.
SNAPSHOT OF PERFORMANCE FROM CONTINUING OPERATIONS
- Group revenue marginally up to R9 902 million (FY22: R9 882)
on weak macro environment in South Africa
- Group EBITDA margin reduced 1,4% points to 13,7% (FY22: 15,1%)
as input inflation kept under control
- Group HEPS loss of 8 cents (FY22: loss of 3 cents)
- Group EPS loss of 16 cents (FY22: loss of 5 cents)
A distribution of R200 million through a share repurchase programme was approved by the board as target leverage
levels reached
Group results excluding PPC Zimbabwe and Rwanda (SA obligor)
- Revenue, excluding dividends increased 1% to R6 586 million (FY22: R6 501 million)
- EBITDA margins declined to 8,7% (FY22: 11,8%)
- Net debt for the SA obligor group improved by R263 million
PPC Zimbabwe
- Slower than anticipated recovery after planned kiln shutdown while market remains sound but
hyperinflation materially impacts reported results
- Dividends of R147 million (US$8,8 million) received by the group (FY22: R91 million or US$6,2 million)
CIMERWA Rwanda
- Volume growth of 1% in line with expectations but EBITDA still increased 31%
and margins increased marginally to 29%
- Inaugural dividend of R79 million (US$4,3 million) received by the group in March 2023
GROUP PERFORMANCE - CONTINUING OPERATIONS
PPC continues to focus on sound capital allocation principles, maximising cash generation from its South African and
Botswana businesses (the SA obligor group) and extracting cash from its investments in Zimbabwe and Rwanda
(the International Businesses). Historically, dividends from Zimbabwe have contributed to the deleveraging of the group's
South African balance sheet. However, in FY23, the SA obligor group has reached an optimal level of gearing that allows
for the implementation of a new distribution policy. This policy is based on distributing an amount of cash so that the
12-month backward and expected 12-month forward SA obligor group gross debt to EBITDA is at a ratio of between 1.3 times
to 1.5 times. A new distribution in the form of a share repurchase of up to R200 million was approved by the board.
The SA obligor group revenue for the year ended 31 March 2023, excluding dividends from the International Businesses,
increased by 1,31% to R6 586 million (March 2022: R6 501 million), driven primarily by the 1,7% increase in revenue
in South Africa and Botswana Cement. While cement volumes remained under pressure, declining 5,8% on the prior year,
average price increases of 8,0% over the period ensured revenue remained positive, albeit slightly (0,5%) negatively
affected by adverse product mix. Including the impact of the International Businesses, which contributed 33%
(March 2022: 34%), total group revenue was flat at R9 902 million (March 2022: R9 882 million). The 29% increase in
revenue from CIMERWA (Rwanda) was more than offset by the reduced contribution of PPC Zimbabwe as reported sales in
ZAR declined by 19%.
Excluding the International Businesses' cost of sales and administration and other operating expenditure for both
periods, such costs in the SA obligor group increased by 4% year-on-year. Including the International Businesses, cost
of sales and administration and other operating expenditure was flat at R9 425 million (March 2022: R9 409 million).
Zimbabwe's costs decreased by 23%, which more than offset CIMERWA's cost increases (in rand) of 26%.
SA obligor group EBITDA, excluding dividends from the International Businesses, decreased by 26% to R570 million
(March 2022: R768 million) and EBITDA margins declined to 8,7% (March 2022: 11,8%) as, notwithstanding sound cost
containment measures implemented, cost increases remain higher than price increases implemented, resulting in
compressed margins.
Including the dividends received from the International Businesses, the SA obligor group's EBITDA amounted to
R804 million (March 2022: R863 million), resulting in gross debt to EBITDA ratio of 1.2 times, thereby facilitating
the R200 million distribution to shareholders.
Including the EBITDA of the International Businesses, group EBITDA declined by 9% to R1 358 million
(March 2022: R1 493 million). The 31% increase in CIMERWA's EBITDA was partially offset by a reduction in PPC
Zimbabwe's contribution of 7%.
Fair value and foreign exchange movements resulted in a gain of R69 million (March 2022: R2 million), mainly due to the
significant depreciation of the Zimbabwean dollar against the United States dollar of 553% (March 2022: 69%) which
resulted in foreign exchange gains on net monetary items.
Impairments of R145 million (March 2022: R38 million) were taken during the year under review, the largest item being
R84 million. This related to an impairment at group of a portion of the premium paid on the acquisition of CIMERWA. Of
the R84 million, R42 million related to the impairment of goodwill.
Finance costs decreased by 28% to R172 million (March 2022: R240 million), due to the successful de-gearing of the
group with gross debt declining from R1 586 million in March 2022 to R1 189 million in March 2023.
During the current year, the group realised a net profit of R23 million (March 2022: nil) from the disposal of the
previously equity-accounted investment in Habesha.
Notwithstanding group profit before tax declining to R93 million (March 2022: R186 million), taxation increased 17% to
R242 million (March 2022: R207 million). The current year tax charge is significantly negatively impacted by non-cash
items of R195 million (March 2022: R56 million). These non-cash items are primarily due to the SA obligor group not
recognising deferred tax assets and PPC Zimbabwe hyperinflation impacts.
Basic earnings per share (EPS) from continuing operations decreased from a loss of 5 cents to a loss of 16 cents.
Headline earnings per share (HEPS) from continuing operations decreased from a loss of 3 cents to a loss of 8 cents.
This is primarily due to the impact of the following:
- Significant non-cash tax items in the current year of R195 million (March 2022: R56 million), relating primarily to
hyperinflation accounting and deferred tax not recognised on losses
- Lower earnings generation in the SA obligor group and PPC Zimbabwe
- The positive impact of the strong CIMERWA performance not flowing fully to EPS and HEPS given the operations are 51%
held by PPC.
Consolidated net cash inflow before financing activities from continuing operations remains positive at R392 million
(March 2022: R675 million) as cash generation remains a priority.
Capital investment remained disciplined and reduced to R415 million (March 2022: R553 million). The reduction in spend
was largely attributable to South Africa and Botswana Cement (R53 million reduction) and Zimbabwe (R69 million reduction).
The SA obligor group's gross debt (excluding capitalised transaction costs) declined from R1 210 million at 31 March 2022
to R931 million at 31 March 2023 in accordance with the debt repayment terms. Unrestricted cash holdings at 31 March 2023
were R131 million (March 2022: R147 million), leaving net debt at R800 million (31 March 2022: R1 063 million).
Zimbabwe is debt-free and had unrestricted cash holdings at 31 March 2023 of R118 million. The cash balance declined
from R353 million at 30 September 2022 due to a dividend of US$5 million paid in November 2022 and lower US$ balances
at the year-end with the cash holdings in ZWL depreciating significantly against the rand. Some 70% of PPC Zimbabwe's
cash is held in hard currencies.
CIMERWA's gross debt declined to R265 million (March 2022: R383 million). Cash also declined from R221 million at
31 March 2022 to R160 million at 31 March 2023, due to the dividend paid in March of R172 million.
SOUTH AFRICA AND BOTSWANA CEMENT
The coastal region continued to see good demand for cement and imports remained relatively muted. The growth in sales
volumes in the coastal region was offset by continued weak trading conditions in the inland region, leaving overall
cement sales volumes in South Africa and Botswana down 5,8% compared to the prior year.
The coastal region saw an increase in cement volumes due to increased industrial construction activity and specific
government projects as well as improved retail sales. Cement imports into the Western Cape remained low during the
period due to global supply chain constraints and a weaker rand.
There was a decline in demand in the larger inland region in both the retail and the construction segments, with the
construction sector being supported to some extent by the building of distribution centres and housing estates.
During the year under review, PPC continued to increase its selling prices on a bi-annual basis and achieved an average
selling price increase of 8.0%. For the year ended 31 March 2023, PPC South Africa and Botswana Cement revenue increased
by 1,7% to R5 509 million (March 2022: R5 415 million), marginally negatively affected by 0,5% due to adverse product mix.
High input cost inflation was experienced during the year, with variable production costs per tonne increasing by some
14% compared to the prior period. Cost mitigation measures reduced the extent of the impact of the high input costs,
with fixed administration and overhead costs decreasing by some 1,4% year-on-year. Overall, total costs increased by 4%
compared to FY22.
EBITDA decreased to R674 million (March 2022: R825 million) with a margin of 11,7% (March 2022: 14,5%) as selling price
increases continued to lag cost increases.
AGGREGATES, READYMIX AND ASH
Readymix volumes decreased by 4%, while aggregates volumes decreased by 22% compared to the prior year. Fly ash sales
volumes declined by 18%. Overall revenue for the materials division decreased by 1% to R1 077 million (March 2022:
R1 086 million), due to the largest contributor to the materials business, readymix, experiencing relatively stable
demand but an increase in selling prices which enabled its revenues to grow by 6%. Overall, the materials businesses
incurred an EBITDA loss of R65 million (March 2022: R41 million profit). Measures were implemented prior to 31 March 2023
to restructure, in particular, the aggregates business to decrease absolute fixed costs and convert certain fixed costs
to variable costs as part of the turnaround efforts for the overall materials businesses.
INTERNATIONAL
Zimbabwe
The impact of the planned extended kiln shutdown in the first half of the year for special maintenance and the
installation of the bag house and bucket elevator resulted in limited clinker production and ultimately restricted the
volumes of cement sold. In addition, plant stoppages due to power interruptions negatively affected performance. Volumes
year-on-year were down 16% despite robust cement demand from concrete product manufacturers and government-funded
infrastructure projects. Government reduced the number of import licences in January 2023, which will support the recovery
of PPC's market share.
PPC Zimbabwe was able to implement US$ price increases to recover input cost inflation. Further, PPC Zimbabwe continued
to generate adequate sales in foreign currency to sustain its operational requirements during the period and pay
dividends. PPC received US$8,9 million in dividends during the year totalling R147 million net of withholding tax
(compared to US$6,2 million in the prior year).
Revenue decreased by 19% to R1 753 million (March 2022: R2 172 million). EBITDA declined by 7% to R365 million
(March 2022: R393 million) in ZAR, but margins, due to price increases increased to 20,8% (March 2022: 18,1%).
Rwanda
CIMERWA's cement sales volumes increased by 1% for the full year, in line with expectations given the planned kiln shut
down in November 2022. The regional demand remains strong as both the domestic and cement export markets, particularly
in the eastern Democratic Republic of Congo, have shown growth in demand. While competition is on the increase, as new
production capacity comes online in the region, CIMERWA is expected to remain in a strong position to benefit from the
continued growth of cement demand in its core markets.
Revenue for the twelve months ended 31 March 2023 increased by 29% to R1 563 million (March 2022: R1 209 million),
assisted by the 9% depreciation of the rand. In local currency, revenue increased by 19%, mainly due to average price
increases in local currency of 18% to offset cost inflation. EBITDA increased by 31% to R447 million (March 2022: R341
million) and EBITDA margins increased marginally to 28,6% (March 2022: 28,2%) as the contribution of premium quality
product increased and CIMERWA's sales to the US$ priced regional market increased.
LEADERSHIP
Following an extensive search process, the board is in the final stages of appointing a suitable successor for Roland,
whose employment contract was scheduled to come to an end on 31 August 2023. The board will communicate to the market
in due course. To ensure an orderly handover, the board has agreed with Roland to extend his contract to 31 December
2023.
OUTLOOK
PPC will continue to focus its resources on Southern Africa while preserving its sound market position in Rwanda. The
group has defined a series of value-accretive projects to reduce CO2 emissions and future proof the business. There is
a need for further operational efficiencies and cost containment measures to mitigate rising input costs as the economic
climate in its key South African market remains muted and competition remains high across the portfolio. Without a
significant increase in infrastructure spending and South African gross domestic product, South Africa's cement demand is
expected to remain subdued. PPC South Africa is well positioned to benefit from an increase in cement demand with additional
capacity readily available to capture an upswing in demand without additional capital expenditure required. PPC Zimbabwe
anticipates a continued recovery and the outlook for CIMERWA in Rwanda remains positive.
Chairman Chief executive officer Chief financial officer
PJ Moleketi R van Wijnen B Berlin
Sandton
26 June 2023
Audit opinion
The audited consolidated annual financial statements were audited by PwC, who expressed an unmodified audit opinion in
terms of the International Standards on Auditing, highlighting key audit matters in their report. A copy of the auditor?s
report on the audited consolidated annual financial statements is available on the following link:
https://www.ppc.africa/investors-relations/reports/?t=final-results-reports.
The auditor's report does not necessarily report on all of the information contained in this announcement, including
the outlook. 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 the auditor?s report together with the accompanying financial information from PPC?s
website or registered office.
SHORT-FORM ANNOUNCEMENT
This short-form announcement of the 2023 AFS is extracted from the financial information in the 2023 AFS and the
Summarised AFS and does not contain full or complete details. This short-form announcement is the responsibility of
the board of directors of PPC. The information in this short-form announcement has been extracted from audited
information but is not itself audited.
Any investment decisions by investors and/shareholders should be based on a consideration of the Summarised AFS, as a
whole, as published on SENS and the issuer's website as follows:
PPC's' website: https://www.ppc.africa/investors-relations/reports?t=final-results-reports&y=2023 and JSE's website:
https://senspdf.jse.co.za/documents/2023/jse/isse/PPC/FY2023.pdf
Copies of the 2023 AFS, the Summarised AFS and the auditors unmodified audit opinion thereon are also available for
inspection at the company's registered office (by appointment) and may be requested from the Company Secretary
Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours. (A live and recorded video webcast of the results
presentation will be held today at 11:00 am and can be accessed via this link: https://www.corpcam.com/PPC26062023)
Registered office: 148 Katherine Street, Sandton, South Africa (PO Box 787416, Sandton, 2146, South Africa)
DIRECTORS: PJ Moleketi (chair), R van Wijnen* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo, CH Naude,
D Smith, MR Thompson
*Dutch **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
Financial Communications Advisor: Instinctif Partners, Louise Fortuin
Mobile: +27 71 605 4294
Date: 26-06-2023 07:15:00
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.
Further Trading Statement for the Twelve Months ended 31 March 2023
Further Trading Statement for the Twelve Months ended 31 March 2023
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(“PPC” or “the company” or “the group”)
FURTHER TRADING STATEMENT FOR THE TWELVE MONTHS ENDED 31 MARCH
2023
Shareholders are referred to the trading statement and operational update for the year ended 31 March
2023 published on SENS on 15 June 2023 (the Trading Statement) and are advised that during the
finalisation of its audited annual financial statements for the year ended 31 March 2023, a prior period error
in the accounting treatment relating to the treatment of the DRC business, PPC Barnet, as a disposal group
was discovered. Since 31 March 2021, PPC Barnet has been accounted for as a discontinued operation
until 29 April 2022, whereupon it was deconsolidated and treated as an equity accounted investment.
EPS and HEPS for continuing operations
This has no effect on the expected earnings per share (EPS) and headline earnings per share (HEPS) for
continuing operations, which were disclosed in the Trading Statement, and which are now as follows:
Current Prior
period period
Actual Actual
EPS (cents) 1 (16) (5)
HEPS (cents) 1 (8) (3)
1 Brackets denote losses per share
EPS and HEPS for the group, including discontinued operations
There was also no impact on the HEPS for the group, including discontinued operations. The actual loss
is 9 cents per share compared to the 13 cents per share loss in the prior period.
The effect of the prior period error on EPS for the group, including discontinued operations is as follows:
Current Prior
period period
Actual Restated
EPS (cents) 1 (43) (4)
1 Brackets denote losses per share
The financial information on which this trading statement is based is the responsibility of the directors of
the company and has been audited and reported on by the group's independent external auditor, PwC. Full
details of the groups’ performance will be contained in the group’s audited financial statements for the
twelve months ended 31 March 2023, which will also be released on 26 June 2023.
Sandton
26 June 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 26-06-2023 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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(“PPC” or “the company” or “the group”)
FURTHER TRADING STATEMENT FOR THE TWELVE MONTHS ENDED 31 MARCH
2023
Shareholders are referred to the trading statement and operational update for the year ended 31 March
2023 published on SENS on 15 June 2023 (the Trading Statement) and are advised that during the
finalisation of its audited annual financial statements for the year ended 31 March 2023, a prior period error
in the accounting treatment relating to the treatment of the DRC business, PPC Barnet, as a disposal group
was discovered. Since 31 March 2021, PPC Barnet has been accounted for as a discontinued operation
until 29 April 2022, whereupon it was deconsolidated and treated as an equity accounted investment.
EPS and HEPS for continuing operations
This has no effect on the expected earnings per share (EPS) and headline earnings per share (HEPS) for
continuing operations, which were disclosed in the Trading Statement, and which are now as follows:
Current Prior
period period
Actual Actual
EPS (cents) 1 (16) (5)
HEPS (cents) 1 (8) (3)
1 Brackets denote losses per share
EPS and HEPS for the group, including discontinued operations
There was also no impact on the HEPS for the group, including discontinued operations. The actual loss
is 9 cents per share compared to the 13 cents per share loss in the prior period.
The effect of the prior period error on EPS for the group, including discontinued operations is as follows:
Current Prior
period period
Actual Restated
EPS (cents) 1 (43) (4)
1 Brackets denote losses per share
The financial information on which this trading statement is based is the responsibility of the directors of
the company and has been audited and reported on by the group's independent external auditor, PwC. Full
details of the groups’ performance will be contained in the group’s audited financial statements for the
twelve months ended 31 March 2023, which will also be released on 26 June 2023.
Sandton
26 June 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 26-06-2023 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.
2023/06/15
Trading statement and operational update for the 12 months ended 31 March 2023
View ArticleTrading statement and operational update for the 12 months ended 31 March 2023
Trading statement and operational update for the 12 months ended 31 March 2023
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(“PPC” or “the company” or “the group”)
TRADING STATEMENT AND OPERATIONAL UPDATE FOR THE TWELVE MONTHS ENDED 31 MARCH 2023
PPC is currently finalising its results for the twelve months ended 31 March 2023 (“the current period”).
Roland van Wijnen, chief executive officer of PPC provides the following context:
“Despite challenging times in our core South African market, I am pleased that we achieved
positive cashflow generation, further reduced our debt and are in a strong financial position to
weather the local economic cycle. Increased demand through an enhanced infrastructure
investment program and a stronger economic climate is required to enable us to more effectively
utilize the capacity available in our primary market. We therefore remain hopeful that the South
African government will roll out its infrastructure development plans and protect the local cement
market through the introduction of import tariffs to create a level playing field for domestic
producers. Increased cash dividends were received from both Zimbabwe and CIMERWA
(Rwanda) during the period under review.”
SA obligor group
The SA obligor group operationally comprises the South African and Botswana cement and materials
businesses. The coastal region of the cement business continued to see relatively better demand for
cement compared to the inland region and benefited from muted imports given the weaker rand over this
period. However, trading conditions in the inland region remained difficult, resulting in overall cement
volumes reducing by 5.8% compared to the year ended 31 March 2022 ("the prior period"). Positively,
during the current period, PPC was able to continue to increase its selling prices on a bi-annual basis and
achieved an average selling price increase of 8.0%. PPC South Africa and Botswana cement revenue
increased by 1.7% during the current period. High input cost inflation remained a key feature requiring
rigorous cost mitigation measures to cushion the impact of these high input costs. Overall, total costs
increased by 4% compared to the prior period.
The smaller materials business was challenged during the year due to difficult trading conditions, including
high fixed costs while also being negatively impacted by loadshedding, particularly in the second half of
the year. Volumes reduced across all its key business lines, readymix, fly ash and aggregates, resulting in
an EBITDA loss of R65 million (March 2022: R41 million profit). Measures were implemented prior to 31
March 2023 to restructure, in particular, the aggregates business to decrease absolute fixed costs and
convert certain fixed costs to variable costs as part of the turnaround efforts for the overall materials
businesses.
EBITDA for the SA obligor group, excluding the dividends received from Zimbabwe and Rwanda, declined
to R570 million from R769 million (26%). EBITDA margin decreased from 11.8% in the prior period to 8.7%.
The SA obligor group’s net debt reduced to R800 million (31 March 2022: R1 063 million), while gross debt
(excluding capitalized transaction costs) declined from R1 210 million at 31 March 2022 to R931 million at
31 March 2023 in accordance with the debt repayment terms. The reduction in gross debt results in a gross
debt to EBITDA ratio, including dividends from Rwanda and Zimbabwe, of 1.2 times.
PPC Zimbabwe
Volumes year-on-year were down 16% despite robust cement demand from concrete product
manufacturers and government-funded infrastructure projects. This is due to the impact of the planned kiln
shut down for maintenance which took place in the first half of the year, which negatively impacted the
performance. In addition, plant stoppages due to power interruptions negatively affected performance in
the second half. PPC Zimbabwe has gradually recovered market share lost over this period and is well
positioned to deliver strong volume growth going forward.
Revenue decreased by 19%, but PPC Zimbabwe was able to implement US$ price increases to cover
input cost inflation and enhance margins. EBITDA declined by 7% to R365 million (March 2022: R393
million).
PPC Zimbabwe is debt-free and had unrestricted cash holdings at 31 March 2023 of R118 million. PPC
received US$8.8 million in dividends during the year, compared to US$6.2 million in the prior year. In rand
terms, PPC received R147 million in the current year net of withholding taxes compared to R91 million in
the prior period.
CIMERWA (Rwanda)
CIMERWA’s volumes increased by 1% for the current period, in line with expectations given the planned
kiln shut down for maintenance in the second half. Revenue increased by 29% assisted in part by the 9%
depreciation of the rand and strong price increases to offset cost inflation. EBITDA increased by 31% to
R447 million (31 March 2022: R341 million).
CIMERWA gross debt declined to R265 million (31 March 2022: R383 million). Cash declined from R221
million at 31 March 2022 to R160 million at 31 March 2023, due to the maiden dividend paid in March 2023
of R172 million. The dividend received by the SA obligor group, net of withholding taxes, amounted to R79
million.
PPC CONSOLIDATED GROUP
Shareholders are advised that PPC is satisfied that a reasonable degree of certainty exists that the
expected earnings per share (“EPS”) and headline earning per share (“HEPS”) for the current period will
differ by at least 20% from that for the previous corresponding period, being the twelve months ended 31
March 2022 and that a trading statement is required in terms of the JSE Limited Listings Requirements.
This is primarily due to the reported EPS and HEPS numbers being impacted by:
1. Significant non-cash tax items in the current year of R195 million (31 March 2022: R56 million), relating
primarily to hyperinflation accounting and deferred tax not recognised on losses.
2. Lower earnings generation in the SA obligor group and PPC Zimbabwe.
3. The positive impact of the strong CIMERWA performance not flowing fully to EPS and HEPS given the
operations are only 51% held by PPC.
PPC accounted for the PPC Barnet DRC business as a discontinued operations up to 29 April 2022,
whereafter it was de-consolidated.
EPS and HEPS for the group including discontinued operations:
EPS for the group, including discontinued operations, for the current period is expected to be a loss of
between 21.5 cents and 22.5 cents per share, compared to the 5.0 cents per share profit for the prior
period. HEPS for the group, including discontinued operations, is expected to be a loss of between 8.0
cents per share and 10.5 cents per share, compared to the 13.0 cents per share loss in the prior period,
being an improvement of between 38% and 19% respectively.
The following EPS and HEPS for continuing operations are expected:
Current period Prior
period
Expectation range Actual
EPS (cents) 1 (15.50) to (16.50) (5)
HEPS (cents) 1 (7.75) to (8.25) (3)
1 Brackets denote expected losses per share
The financial information on which this trading statement is based is the responsibility of the directors of
the company and has not been reviewed or reported on by the group's independent external auditor. Full
details of the groups’ performance will be contained in the group’s audited financial statements for the
twelve months ended 31 March 2023, which are expected to be released on or about 26 June 2023.
Outlook
PPC will continue to focus its resources on Southern Africa, which includes Zimbabwe, while preserving its
sound market position in Rwanda. Further operational efficiencies and cost containment measures have
been identified to mitigate rising input costs as the economic climate in its key South African market remains
muted and competition remains high across the portfolio. PPC will continue to implement bi-annual price
increases to achieve margin recovery. Without a significant increase in infrastructure spending and
economic growth, South Africa’s cement demand is expected to remain subdued. PPC South Africa is well
positioned to benefit from an increase in cement demand with additional capacity readily available to
capture an upswing in demand without additional capital expenditure required. PPC Zimbabwe anticipates
a continued recovery and the outlook for CIMERWA remains positive.
PPC’s focus will continue to be on cash generation and capital allocation efficiency. With the South African
gross debt to EBITDA ratio now at the targeted level, PPC intends to prioritise returning cash to
shareholders through dividends or a share repurchase program in the absence of any value enhancing
corporate activity.
Sandton
15 June 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 15-06-2023 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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(“PPC” or “the company” or “the group”)
TRADING STATEMENT AND OPERATIONAL UPDATE FOR THE TWELVE MONTHS ENDED 31 MARCH 2023
PPC is currently finalising its results for the twelve months ended 31 March 2023 (“the current period”).
Roland van Wijnen, chief executive officer of PPC provides the following context:
“Despite challenging times in our core South African market, I am pleased that we achieved
positive cashflow generation, further reduced our debt and are in a strong financial position to
weather the local economic cycle. Increased demand through an enhanced infrastructure
investment program and a stronger economic climate is required to enable us to more effectively
utilize the capacity available in our primary market. We therefore remain hopeful that the South
African government will roll out its infrastructure development plans and protect the local cement
market through the introduction of import tariffs to create a level playing field for domestic
producers. Increased cash dividends were received from both Zimbabwe and CIMERWA
(Rwanda) during the period under review.”
SA obligor group
The SA obligor group operationally comprises the South African and Botswana cement and materials
businesses. The coastal region of the cement business continued to see relatively better demand for
cement compared to the inland region and benefited from muted imports given the weaker rand over this
period. However, trading conditions in the inland region remained difficult, resulting in overall cement
volumes reducing by 5.8% compared to the year ended 31 March 2022 ("the prior period"). Positively,
during the current period, PPC was able to continue to increase its selling prices on a bi-annual basis and
achieved an average selling price increase of 8.0%. PPC South Africa and Botswana cement revenue
increased by 1.7% during the current period. High input cost inflation remained a key feature requiring
rigorous cost mitigation measures to cushion the impact of these high input costs. Overall, total costs
increased by 4% compared to the prior period.
The smaller materials business was challenged during the year due to difficult trading conditions, including
high fixed costs while also being negatively impacted by loadshedding, particularly in the second half of
the year. Volumes reduced across all its key business lines, readymix, fly ash and aggregates, resulting in
an EBITDA loss of R65 million (March 2022: R41 million profit). Measures were implemented prior to 31
March 2023 to restructure, in particular, the aggregates business to decrease absolute fixed costs and
convert certain fixed costs to variable costs as part of the turnaround efforts for the overall materials
businesses.
EBITDA for the SA obligor group, excluding the dividends received from Zimbabwe and Rwanda, declined
to R570 million from R769 million (26%). EBITDA margin decreased from 11.8% in the prior period to 8.7%.
The SA obligor group’s net debt reduced to R800 million (31 March 2022: R1 063 million), while gross debt
(excluding capitalized transaction costs) declined from R1 210 million at 31 March 2022 to R931 million at
31 March 2023 in accordance with the debt repayment terms. The reduction in gross debt results in a gross
debt to EBITDA ratio, including dividends from Rwanda and Zimbabwe, of 1.2 times.
PPC Zimbabwe
Volumes year-on-year were down 16% despite robust cement demand from concrete product
manufacturers and government-funded infrastructure projects. This is due to the impact of the planned kiln
shut down for maintenance which took place in the first half of the year, which negatively impacted the
performance. In addition, plant stoppages due to power interruptions negatively affected performance in
the second half. PPC Zimbabwe has gradually recovered market share lost over this period and is well
positioned to deliver strong volume growth going forward.
Revenue decreased by 19%, but PPC Zimbabwe was able to implement US$ price increases to cover
input cost inflation and enhance margins. EBITDA declined by 7% to R365 million (March 2022: R393
million).
PPC Zimbabwe is debt-free and had unrestricted cash holdings at 31 March 2023 of R118 million. PPC
received US$8.8 million in dividends during the year, compared to US$6.2 million in the prior year. In rand
terms, PPC received R147 million in the current year net of withholding taxes compared to R91 million in
the prior period.
CIMERWA (Rwanda)
CIMERWA’s volumes increased by 1% for the current period, in line with expectations given the planned
kiln shut down for maintenance in the second half. Revenue increased by 29% assisted in part by the 9%
depreciation of the rand and strong price increases to offset cost inflation. EBITDA increased by 31% to
R447 million (31 March 2022: R341 million).
CIMERWA gross debt declined to R265 million (31 March 2022: R383 million). Cash declined from R221
million at 31 March 2022 to R160 million at 31 March 2023, due to the maiden dividend paid in March 2023
of R172 million. The dividend received by the SA obligor group, net of withholding taxes, amounted to R79
million.
PPC CONSOLIDATED GROUP
Shareholders are advised that PPC is satisfied that a reasonable degree of certainty exists that the
expected earnings per share (“EPS”) and headline earning per share (“HEPS”) for the current period will
differ by at least 20% from that for the previous corresponding period, being the twelve months ended 31
March 2022 and that a trading statement is required in terms of the JSE Limited Listings Requirements.
This is primarily due to the reported EPS and HEPS numbers being impacted by:
1. Significant non-cash tax items in the current year of R195 million (31 March 2022: R56 million), relating
primarily to hyperinflation accounting and deferred tax not recognised on losses.
2. Lower earnings generation in the SA obligor group and PPC Zimbabwe.
3. The positive impact of the strong CIMERWA performance not flowing fully to EPS and HEPS given the
operations are only 51% held by PPC.
PPC accounted for the PPC Barnet DRC business as a discontinued operations up to 29 April 2022,
whereafter it was de-consolidated.
EPS and HEPS for the group including discontinued operations:
EPS for the group, including discontinued operations, for the current period is expected to be a loss of
between 21.5 cents and 22.5 cents per share, compared to the 5.0 cents per share profit for the prior
period. HEPS for the group, including discontinued operations, is expected to be a loss of between 8.0
cents per share and 10.5 cents per share, compared to the 13.0 cents per share loss in the prior period,
being an improvement of between 38% and 19% respectively.
The following EPS and HEPS for continuing operations are expected:
Current period Prior
period
Expectation range Actual
EPS (cents) 1 (15.50) to (16.50) (5)
HEPS (cents) 1 (7.75) to (8.25) (3)
1 Brackets denote expected losses per share
The financial information on which this trading statement is based is the responsibility of the directors of
the company and has not been reviewed or reported on by the group's independent external auditor. Full
details of the groups’ performance will be contained in the group’s audited financial statements for the
twelve months ended 31 March 2023, which are expected to be released on or about 26 June 2023.
Outlook
PPC will continue to focus its resources on Southern Africa, which includes Zimbabwe, while preserving its
sound market position in Rwanda. Further operational efficiencies and cost containment measures have
been identified to mitigate rising input costs as the economic climate in its key South African market remains
muted and competition remains high across the portfolio. PPC will continue to implement bi-annual price
increases to achieve margin recovery. Without a significant increase in infrastructure spending and
economic growth, South Africa’s cement demand is expected to remain subdued. PPC South Africa is well
positioned to benefit from an increase in cement demand with additional capacity readily available to
capture an upswing in demand without additional capital expenditure required. PPC Zimbabwe anticipates
a continued recovery and the outlook for CIMERWA remains positive.
PPC’s focus will continue to be on cash generation and capital allocation efficiency. With the South African
gross debt to EBITDA ratio now at the targeted level, PPC intends to prioritise returning cash to
shareholders through dividends or a share repurchase program in the absence of any value enhancing
corporate activity.
Sandton
15 June 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 15-06-2023 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.
Secondary Listing of PPC on A2X
Secondary Listing of PPC on A2X
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”)
SECONDARY LISTING OF PPC ON A2X
PPC is pleased to advise shareholders that its ordinary shares will be traded on A2X with effect from
30 May 2023 (“the A2X listing date”).
PPC will retain its listings on the JSE Limited (“JSE”) and the Zimbabwean Stock Exchange (“ZSE”) and
its issued share capital will be unaffected by the secondary listing on A2X. PPC’s ordinary shares will
be traded on the JSE and A2X from the A2X listing date.
A2X is a licensed stock exchange authorised to provide a secondary trading venue for companies and
is regulated by the Financial Sector Conduct Authority and Prudential Authority, South African Reserve
Bank in South Africa in terms of the Financial Markets Act 19 of 2012, as amended.
Sandton
24 May 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 24-05-2023 07:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”)
SECONDARY LISTING OF PPC ON A2X
PPC is pleased to advise shareholders that its ordinary shares will be traded on A2X with effect from
30 May 2023 (“the A2X listing date”).
PPC will retain its listings on the JSE Limited (“JSE”) and the Zimbabwean Stock Exchange (“ZSE”) and
its issued share capital will be unaffected by the secondary listing on A2X. PPC’s ordinary shares will
be traded on the JSE and A2X from the A2X listing date.
A2X is a licensed stock exchange authorised to provide a secondary trading venue for companies and
is regulated by the Financial Sector Conduct Authority and Prudential Authority, South African Reserve
Bank in South Africa in terms of the Financial Markets Act 19 of 2012, as amended.
Sandton
24 May 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 24-05-2023 07:30:00
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.
2023/03/16
Capital Markets Day and Operational Update for the Twelve Months ending 31 March 2023
View ArticleCapital Markets Day and Operational Update for the Twelve Months ending 31 March 2023
Capital Markets Day and Operational Update for the Twelve Months ending 31 March 2023
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the group”)
CAPITAL MARKETS DAY AND OPERATIONAL UPDATE FOR THE TWELVE MONTHS ENDING 31 MARCH
2023
PPC CAPITAL MARKETS DAY
PPC is hosting a Capital Markets Day today at 09h00 (SAST) at the Vineyard Hotel in Cape Town. The
event, which will provide deeper insight into PPC’s strategy, operations and financial information will
also be broadcast live via a webcast with live question and answer sessions. Further details can be
accessed at the following links:
Investor presentation:
https://www.ppc.africa/investors-relations/reports/?t=presentations-allocate
Webcast:
https://www.corpcam.com/PPC16032023
A recording of the event will be available on the PPC website from late afternoon on the Capital
Markets Day.
OPERATIONAL UPDATE FOR THE TWELVE MONTHS ENDING 31 MARCH 2023
GROUP PERFORMANCE
The twelve months ending 31 March 2023 has been characterized by different market conditions in
each of the markets in which PPC operates, being South Africa & Botswana, Zimbabwe and Rwanda.
In South Africa & Botswana, the market has been affected by a decline in disposable income and the
absence of any material increase in demand from infrastructure spending. Zimbabwe and Rwanda
continue to experience growth in cement demand supported by infrastructure spending and retail
demand in both countries. The one common factor across the markets has been a significant increase
in input costs due to the rise of energy costs globally.
Deleveraging continued to be a priority in South Africa & Botswana. PPC expects net debt in South
Africa & Botswana to be between R725 million and R775 million at year-end down from R1,075 million
at 31 March 2022 and R935 million at 30 September 2022. Gross debt is anticipated to reach our
targeted levels by year-end, which would allow for distributions while maintaining gross leverage at
1.3 – 1.5x of the full South African and Botswana operations EBITDA, which includes dividends from
Zimbabwe and Rwanda. In Rwanda, CIMERWA’s debt continues to decrease and matures in August
2024. Both PPC Zimbabwe and CIMERWA expect to be in a net cash position at 31 March 2023 with
sustained dividend payments being a key priority. CIMERWA declared its first dividend in the current
financial year, which is anticipated to be paid out before end March 2023.
SOUTH AFRICA & BOTSWANA CEMENT
PPC expects cement sales volumes in South Africa & Botswana to decrease by 4% to 7% year-on-year
for the twelve months ending 31 March 2023 (“FY23”). A decrease of 2.6% was reported for the first
six months of FY23 (“H1”) and the negative trend in market demand has continued in the second six-
month period of FY23 (“H2”).
These numbers mask a relatively sound performance in the coastal region while trading in the inland
region continues to be very challenging. In the Western Cape, PPC has been able to increase its market
share as imports reduced over the reporting period. Conversely the cement market share of PPC in
the highly competitive inland areas has come under pressure following price increases implemented
in June 2022 to offset rising costs. Rising input costs and the objective of maintaining our market share
continues to cause margin pressure. Average selling prices (“ASP”) for the full year are expected to
increase between 5% and 7%. At 30 September 2022, the ASP was reported to have increased by 5%
in the first six months of FY23 compared to the same period in the previous financial year (“FY22”).
PPC will continue with its bi-annual price increases in the 2024 financial year to restore EBITDA
margins.
PPC contained its production cost inflation to approximately 11% during FY23. Cost mitigation
measures and improved operational performance reduced the impact of the external input cost
inflation. Efforts to contain fixed costs and administration/other expenses resulted in these costs only
increasing between 3% to 5%.
Earnings before interest, tax, depreciation and amortisation (“EBITDA”) margin was 17.6% for H1 FY22
and 14.5% for FY22. This declined due to cost pressures in H1 FY23 to a reported 12.2%. Price increases
in H2 FY23 have not kept pace with cost inflation and PPC expects the margin for the South Africa and
Botswana Cement business to decline to a between 9% and 11% for the full year from 14.5% reported
for FY22.
Recovery of cement demand in South Africa remains dependent on the implementation of the much
awaited and needed infrastructure programmes as well as an improved macro environment.
Consumer spending on building materials is not expected to increase in the short-term. Despite lower
international freight costs, PPC does not anticipate a significant increase in imports in the short-term
due to rand weakness and continued port challenges across South Africa, which should provide some
reprieve. However, in the medium-term, imports and the associated impacts on direct and indirect
employment remain an issue for the South African cement industry. In addition, PPC has noticed with
concern that sub-standard cement continues to be sold in the South African market, especially in areas
with intense competition. PPC therefore continues its engagements with regulators to create a level
playing field among local, regional and international competitors.
MATERIALS
PPC operates three distinctly different business lines reported as Materials, namely readymix
concrete, aggregates and fly ash. All these business lines are subject to similar construction market
trends as described above for the South African cement demand, but are slightly less impacted by
changes in the retail sector. The readymix concrete business is a significant consumer of PPC cement
and is expected to have similar sales volumes in FY23 compared to FY22 on the back of a growth in
market share. The aggregates business serves its customers from two quarries. The lack of demand
across its customer portfolio has caused an expected decline in sales volumes in FY23 of 20% to 25%
compared to FY22. The fly ash business expects a decline of sales volumes similar to that of aggregates.
Unlike cement factories, the operations in Materials are fully exposed to loadshedding unless back-up
generators are installed. This has caused numerous disruptions and cost increases. The EBITDA
contribution of the Materials division reported a loss of R14 million at 30 September 2022 for the first
six months of FY23. For the full year, PPC expects this negative EBITDA contribution to increase
disproportionately. In the second half of FY23, a turn-around plan was formulated that will
significantly decrease the fixed costs associated with the Materials business. The plan will be
implemented in March and April 2023.
ZIMBABWE
At 30 September 2022, PPC Zimbabwe reported a decline in sales volumes of 13% for the first six
months of FY23 due to the impact of a longer than usual kiln stoppage to implement operational and
environmental performance improvements with the expectation that sales volumes would recover in
H2 of FY23. Notwithstanding market conditions in Zimbabwe remaining positive due to continued
infrastructure investments, sales volumes in H2 FY23 have been muted due to significant power
interruptions and a more gradual than anticipated recovery of market share lost to imports. For the
full year, PPC Zimbabwe therefore expects sales volumes to decline by 14% to 18% compared to FY22.
PPC Zimbabwe has engaged the authorities to reduce the impact of the lack of electricity on critical
industrial sectors such as cement manufacturing and to ensure a level playing field with importers.
The outlook for PPC Zimbabwe remains positive and it is expected that EBITDA and EBITDA margins
will continue to recover to the levels of FY22 over the coming months. For FY23, PPC received USD8.8
million in dividends from PPC Zimbabwe (USD6.2 million in FY22). The bi-annual dividend declarations
are expected to continue and grow over time.
RWANDA
At 30 September 2022, CIMERWA reported an increase of cement sales volumes of 11% for the first
six months of FY23 compared to the same period in FY22 when COVID restrictions were still affecting
the Rwandan market. Whilst market conditions continue to be positive, the sales volumes of
CIMERWA are expected to be 8% to 11% lower in H2 FY23 due to the impact of a planned kiln
shutdown for annual maintenance and the comparatively high H2 FY22 sales volumes following the
removal of COVID restrictions in Rwanda. CIMERWA therefore expects sales volumes to be more or
less flat for the full year and an increase of ASP in the range of 14% to 17%. Material future growth of
sales volumes depends on the speed of implementation of planned investments to increase
CIMERWA’s capacity. EBITDA margins were reported to be 32% for the first six months driven by the
implementation of cost reduction measures and an increase in the ASP. Despite maintenance costs
associated with the kiln stoppage in H2 FY23, CIMERWA expects to report EBITDA margins in the range
of 28% to 32% for FY23. The outlook for cement demand in Rwanda and eastern Democratic Republic
of Congo remains optimistic although PPC does note increased competitor pressure both in Rwanda
and from neighbouring countries. The shareholders of CIMERWA approved the payment of a Rwf10.5
billion dividend at the annual general meeting in February 2023. PPC expects CIMERWA to pay 51% of
this dividend (approx. R80 million after withholding taxes) in late March 2023.
LIQUIDITY & CASH FLOW
The group manages the cash flow and financial position in its three geographic areas (South Africa &
Botswana, Zimbabwe and Rwanda) separately. Each of these areas is ringfenced so that South Africa
& Botswana receives dividends and management fees from the subsidiaries outside this area. South
Africa & Botswana reported a net debt of R1,075 million at 31 March 2022 and R935 million at 30
September 2022. It expects that the net debt position will further improve to between R725 million
and R775 million by the end of March 2023. The ratio of gross debt to EBITDA (that includes the
dividends received) is expected to be approximately at the targeted level of 1.3 – 1.5x.
Prudent allocation of capital remains a priority and the capital expenditure for the whole of South
Africa & Botswana is expected to be in the range of R280 million to R310 million for FY23 compared
to R324 million in FY22. Capital expenditure in South Africa & Botswana mainly relates to the
categories of maintenance and compliance although FY23 does include expenditure for a new cement
blending facility that PPC expects to commission in the first quarter of the 2024 financial year to
further reduce costs in delivering product to the customer. Net working capital (“NWC”) in South
Africa & Botswana is expected to increase by R60 million to R80 million driven by the need for
additional inventory to optimize kiln shutdown periods.
The financial position of both PPC Zimbabwe and CIMERWA remains solid with both companies
reporting positive free cash flow after capital expenditure and NWC movements. Both companies will
end the financial year in a net positive cash position. Future capital expenditure requirements for both
these companies will not require financial assistance from PPC South Africa & Botswana.
OUTLOOK
PPC plans to implement further cost reduction measures across its portfolio to protect and restore
EBITDA margins. This is in particular important for South Africa, where the business environment is
expected to remain difficult as loadshedding and other challenges persist. Further cement price
increases will be necessary to ensure the long-term sustainability of the domestic industry and PPC
will continue to implement the required price increases whilst protecting its leading market position.
However, PPC remains prepared and able to activate additional capacity when the impact of
infrastructure programs materialises. This can be done in a matter of weeks without significant fixed
costs or capital expenditure.
The subsidiaries outside South Africa & Botswana are well positioned to continue to deliver a strong
performance with regular and increasing dividend declarations to South Africa.
With the South African gross debt to EBITDA ratio expected to be at the stated optimal level, PPC
intends to prioritize returning cash to shareholders through dividends or a share repurchase program
in the absence of any value enhancing corporate activity.
Sandton
16 March 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 16-03-2023 07:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the group”)
CAPITAL MARKETS DAY AND OPERATIONAL UPDATE FOR THE TWELVE MONTHS ENDING 31 MARCH
2023
PPC CAPITAL MARKETS DAY
PPC is hosting a Capital Markets Day today at 09h00 (SAST) at the Vineyard Hotel in Cape Town. The
event, which will provide deeper insight into PPC’s strategy, operations and financial information will
also be broadcast live via a webcast with live question and answer sessions. Further details can be
accessed at the following links:
Investor presentation:
https://www.ppc.africa/investors-relations/reports/?t=presentations-allocate
Webcast:
https://www.corpcam.com/PPC16032023
A recording of the event will be available on the PPC website from late afternoon on the Capital
Markets Day.
OPERATIONAL UPDATE FOR THE TWELVE MONTHS ENDING 31 MARCH 2023
GROUP PERFORMANCE
The twelve months ending 31 March 2023 has been characterized by different market conditions in
each of the markets in which PPC operates, being South Africa & Botswana, Zimbabwe and Rwanda.
In South Africa & Botswana, the market has been affected by a decline in disposable income and the
absence of any material increase in demand from infrastructure spending. Zimbabwe and Rwanda
continue to experience growth in cement demand supported by infrastructure spending and retail
demand in both countries. The one common factor across the markets has been a significant increase
in input costs due to the rise of energy costs globally.
Deleveraging continued to be a priority in South Africa & Botswana. PPC expects net debt in South
Africa & Botswana to be between R725 million and R775 million at year-end down from R1,075 million
at 31 March 2022 and R935 million at 30 September 2022. Gross debt is anticipated to reach our
targeted levels by year-end, which would allow for distributions while maintaining gross leverage at
1.3 – 1.5x of the full South African and Botswana operations EBITDA, which includes dividends from
Zimbabwe and Rwanda. In Rwanda, CIMERWA’s debt continues to decrease and matures in August
2024. Both PPC Zimbabwe and CIMERWA expect to be in a net cash position at 31 March 2023 with
sustained dividend payments being a key priority. CIMERWA declared its first dividend in the current
financial year, which is anticipated to be paid out before end March 2023.
SOUTH AFRICA & BOTSWANA CEMENT
PPC expects cement sales volumes in South Africa & Botswana to decrease by 4% to 7% year-on-year
for the twelve months ending 31 March 2023 (“FY23”). A decrease of 2.6% was reported for the first
six months of FY23 (“H1”) and the negative trend in market demand has continued in the second six-
month period of FY23 (“H2”).
These numbers mask a relatively sound performance in the coastal region while trading in the inland
region continues to be very challenging. In the Western Cape, PPC has been able to increase its market
share as imports reduced over the reporting period. Conversely the cement market share of PPC in
the highly competitive inland areas has come under pressure following price increases implemented
in June 2022 to offset rising costs. Rising input costs and the objective of maintaining our market share
continues to cause margin pressure. Average selling prices (“ASP”) for the full year are expected to
increase between 5% and 7%. At 30 September 2022, the ASP was reported to have increased by 5%
in the first six months of FY23 compared to the same period in the previous financial year (“FY22”).
PPC will continue with its bi-annual price increases in the 2024 financial year to restore EBITDA
margins.
PPC contained its production cost inflation to approximately 11% during FY23. Cost mitigation
measures and improved operational performance reduced the impact of the external input cost
inflation. Efforts to contain fixed costs and administration/other expenses resulted in these costs only
increasing between 3% to 5%.
Earnings before interest, tax, depreciation and amortisation (“EBITDA”) margin was 17.6% for H1 FY22
and 14.5% for FY22. This declined due to cost pressures in H1 FY23 to a reported 12.2%. Price increases
in H2 FY23 have not kept pace with cost inflation and PPC expects the margin for the South Africa and
Botswana Cement business to decline to a between 9% and 11% for the full year from 14.5% reported
for FY22.
Recovery of cement demand in South Africa remains dependent on the implementation of the much
awaited and needed infrastructure programmes as well as an improved macro environment.
Consumer spending on building materials is not expected to increase in the short-term. Despite lower
international freight costs, PPC does not anticipate a significant increase in imports in the short-term
due to rand weakness and continued port challenges across South Africa, which should provide some
reprieve. However, in the medium-term, imports and the associated impacts on direct and indirect
employment remain an issue for the South African cement industry. In addition, PPC has noticed with
concern that sub-standard cement continues to be sold in the South African market, especially in areas
with intense competition. PPC therefore continues its engagements with regulators to create a level
playing field among local, regional and international competitors.
MATERIALS
PPC operates three distinctly different business lines reported as Materials, namely readymix
concrete, aggregates and fly ash. All these business lines are subject to similar construction market
trends as described above for the South African cement demand, but are slightly less impacted by
changes in the retail sector. The readymix concrete business is a significant consumer of PPC cement
and is expected to have similar sales volumes in FY23 compared to FY22 on the back of a growth in
market share. The aggregates business serves its customers from two quarries. The lack of demand
across its customer portfolio has caused an expected decline in sales volumes in FY23 of 20% to 25%
compared to FY22. The fly ash business expects a decline of sales volumes similar to that of aggregates.
Unlike cement factories, the operations in Materials are fully exposed to loadshedding unless back-up
generators are installed. This has caused numerous disruptions and cost increases. The EBITDA
contribution of the Materials division reported a loss of R14 million at 30 September 2022 for the first
six months of FY23. For the full year, PPC expects this negative EBITDA contribution to increase
disproportionately. In the second half of FY23, a turn-around plan was formulated that will
significantly decrease the fixed costs associated with the Materials business. The plan will be
implemented in March and April 2023.
ZIMBABWE
At 30 September 2022, PPC Zimbabwe reported a decline in sales volumes of 13% for the first six
months of FY23 due to the impact of a longer than usual kiln stoppage to implement operational and
environmental performance improvements with the expectation that sales volumes would recover in
H2 of FY23. Notwithstanding market conditions in Zimbabwe remaining positive due to continued
infrastructure investments, sales volumes in H2 FY23 have been muted due to significant power
interruptions and a more gradual than anticipated recovery of market share lost to imports. For the
full year, PPC Zimbabwe therefore expects sales volumes to decline by 14% to 18% compared to FY22.
PPC Zimbabwe has engaged the authorities to reduce the impact of the lack of electricity on critical
industrial sectors such as cement manufacturing and to ensure a level playing field with importers.
The outlook for PPC Zimbabwe remains positive and it is expected that EBITDA and EBITDA margins
will continue to recover to the levels of FY22 over the coming months. For FY23, PPC received USD8.8
million in dividends from PPC Zimbabwe (USD6.2 million in FY22). The bi-annual dividend declarations
are expected to continue and grow over time.
RWANDA
At 30 September 2022, CIMERWA reported an increase of cement sales volumes of 11% for the first
six months of FY23 compared to the same period in FY22 when COVID restrictions were still affecting
the Rwandan market. Whilst market conditions continue to be positive, the sales volumes of
CIMERWA are expected to be 8% to 11% lower in H2 FY23 due to the impact of a planned kiln
shutdown for annual maintenance and the comparatively high H2 FY22 sales volumes following the
removal of COVID restrictions in Rwanda. CIMERWA therefore expects sales volumes to be more or
less flat for the full year and an increase of ASP in the range of 14% to 17%. Material future growth of
sales volumes depends on the speed of implementation of planned investments to increase
CIMERWA’s capacity. EBITDA margins were reported to be 32% for the first six months driven by the
implementation of cost reduction measures and an increase in the ASP. Despite maintenance costs
associated with the kiln stoppage in H2 FY23, CIMERWA expects to report EBITDA margins in the range
of 28% to 32% for FY23. The outlook for cement demand in Rwanda and eastern Democratic Republic
of Congo remains optimistic although PPC does note increased competitor pressure both in Rwanda
and from neighbouring countries. The shareholders of CIMERWA approved the payment of a Rwf10.5
billion dividend at the annual general meeting in February 2023. PPC expects CIMERWA to pay 51% of
this dividend (approx. R80 million after withholding taxes) in late March 2023.
LIQUIDITY & CASH FLOW
The group manages the cash flow and financial position in its three geographic areas (South Africa &
Botswana, Zimbabwe and Rwanda) separately. Each of these areas is ringfenced so that South Africa
& Botswana receives dividends and management fees from the subsidiaries outside this area. South
Africa & Botswana reported a net debt of R1,075 million at 31 March 2022 and R935 million at 30
September 2022. It expects that the net debt position will further improve to between R725 million
and R775 million by the end of March 2023. The ratio of gross debt to EBITDA (that includes the
dividends received) is expected to be approximately at the targeted level of 1.3 – 1.5x.
Prudent allocation of capital remains a priority and the capital expenditure for the whole of South
Africa & Botswana is expected to be in the range of R280 million to R310 million for FY23 compared
to R324 million in FY22. Capital expenditure in South Africa & Botswana mainly relates to the
categories of maintenance and compliance although FY23 does include expenditure for a new cement
blending facility that PPC expects to commission in the first quarter of the 2024 financial year to
further reduce costs in delivering product to the customer. Net working capital (“NWC”) in South
Africa & Botswana is expected to increase by R60 million to R80 million driven by the need for
additional inventory to optimize kiln shutdown periods.
The financial position of both PPC Zimbabwe and CIMERWA remains solid with both companies
reporting positive free cash flow after capital expenditure and NWC movements. Both companies will
end the financial year in a net positive cash position. Future capital expenditure requirements for both
these companies will not require financial assistance from PPC South Africa & Botswana.
OUTLOOK
PPC plans to implement further cost reduction measures across its portfolio to protect and restore
EBITDA margins. This is in particular important for South Africa, where the business environment is
expected to remain difficult as loadshedding and other challenges persist. Further cement price
increases will be necessary to ensure the long-term sustainability of the domestic industry and PPC
will continue to implement the required price increases whilst protecting its leading market position.
However, PPC remains prepared and able to activate additional capacity when the impact of
infrastructure programs materialises. This can be done in a matter of weeks without significant fixed
costs or capital expenditure.
The subsidiaries outside South Africa & Botswana are well positioned to continue to deliver a strong
performance with regular and increasing dividend declarations to South Africa.
With the South African gross debt to EBITDA ratio expected to be at the stated optimal level, PPC
intends to prioritize returning cash to shareholders through dividends or a share repurchase program
in the absence of any value enhancing corporate activity.
Sandton
16 March 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 16-03-2023 07:30:00
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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.
Response to Media Speculation regarding Sale of PPC Zimbabwe
Response to Media Speculation regarding Sale of PPC Zimbabwe
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
RESPONSE TO MEDIA SPECULATION – SALE OF PPC ZIMBABWE LIMITED
PPC notes the recent media speculation regarding the possible sale of its subsidiary, PPC Zimbabwe.
PPC regularly receives unsolicited approaches for various parts of its businesses, including PPC
Zimbabwe, from a wide range of parties. PPC’s Board has a duty to assess any such approaches on
their respective merits and in line with its commitment to safeguard and enhance value for
stakeholders. Any material developments on these unsolicited approaches will be shared with the
market via official channels, as required by applicable regulations.
PPC Zimbabwe forms an integral part of PPC’s Southern Africa footprint, and the business continues
to focus on providing customers with high quality cement to support the development of Zimbabwe.
Sandton
07 February 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 07-02-2023 02:59:00
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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
RESPONSE TO MEDIA SPECULATION – SALE OF PPC ZIMBABWE LIMITED
PPC notes the recent media speculation regarding the possible sale of its subsidiary, PPC Zimbabwe.
PPC regularly receives unsolicited approaches for various parts of its businesses, including PPC
Zimbabwe, from a wide range of parties. PPC’s Board has a duty to assess any such approaches on
their respective merits and in line with its commitment to safeguard and enhance value for
stakeholders. Any material developments on these unsolicited approaches will be shared with the
market via official channels, as required by applicable regulations.
PPC Zimbabwe forms an integral part of PPC’s Southern Africa footprint, and the business continues
to focus on providing customers with high quality cement to support the development of Zimbabwe.
Sandton
07 February 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 07-02-2023 02:59:00
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.
2022
Disclosure of Beneficial Interest in Securities
Disclosure of Beneficial Interest in Securities
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DISCLOSURE OF BENEFICIAL INTERESTS IN SECURITIES
In terms of paragraph 3.83(b) of the JSE Listings Requirements and section 122(3)(b) of the Companies
Act, No. 71 of 2008, as amended, shareholders are advised that the Company has received formal
notification that Camissa Asset Management (Pty) Ltd, acquired an interest in the ordinary shares of
the Company, such that the total interest held in PPC now amounts to 5.31% of the total issued
ordinary shares of PPC.
The board of PPC (“the Board”) accepts responsibility for the information contained in this
announcement as it pertains to PPC. To the best of the Board's knowledge and belief, the information
contained in this announcement as it pertains to PPC is true and nothing has been omitted which is
likely to affect the importance of such information.
Sandton
25 November 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 25-11-2022 03:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DISCLOSURE OF BENEFICIAL INTERESTS IN SECURITIES
In terms of paragraph 3.83(b) of the JSE Listings Requirements and section 122(3)(b) of the Companies
Act, No. 71 of 2008, as amended, shareholders are advised that the Company has received formal
notification that Camissa Asset Management (Pty) Ltd, acquired an interest in the ordinary shares of
the Company, such that the total interest held in PPC now amounts to 5.31% of the total issued
ordinary shares of PPC.
The board of PPC (“the Board”) accepts responsibility for the information contained in this
announcement as it pertains to PPC. To the best of the Board's knowledge and belief, the information
contained in this announcement as it pertains to PPC is true and nothing has been omitted which is
likely to affect the importance of such information.
Sandton
25 November 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 25-11-2022 03:00:00
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.
Group Results for the six months ended 30 September 2022
Click below to view full PDF article
https://senspdf.jse.co.za/documents/2022/jse/isse/ppc/PPC30Sep.pdf
Group Results for the six months ended 30 September 2022
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(PPC or the company or the group)
SHORT FORM ANNOUNCEMENT GROUP RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 2022
SALIENT FEATURES - CONTINUING OPERATIONS
GROUP RESULTS EXCLUDING PPC ZIMBABWE
- Group revenue increased 9% to R4 248 million (September 2021: R3 893 million)
- Group EBITDA margins declined to 13,7% (September 2021: 16,9%)
- Profit before tax increased by 4% from R250 million to R259 million
- Net debt for the SA and Botswana group improved by R140 million
- EPS decreased from 8 cents to 5 cents
- HEPS decreased from 10 cents to 4 cents
PPC ZIMBABWE
- Planned kiln shutdown reduced volumes by 13% despite robust cement demand
- Hyperinflation materially impacted reported results
- Contribution to revenue reduced to 17% (September 2021: 24%)
- Dividends of US$4,4 million paid to the group
- The group did not declare a dividend for the current or previous period
COMMENTARY OVERVIEW
Roland van Wijnen, CEO, said: "I am pleased that our strategic initiatives have enabled PPC to maintain its
market-leading position in its core Southern African markets and continue to reduce debt, despite challenging and
competitive trading conditions. We are in a strong financial position to weather the local economic cycle and are well
placed to supply any increase in demand as the roll-out of the South African government's infrastructure development
plans gain momentum. I thank our valued customers for their enduring support. I also thank all my colleagues for their
hard work, commitment, and dedication."
GROUP PERFORMANCE - CONTINUING OPERATIONS
PPC delivered a sound performance under challenging operating conditions through continued focus on driving cost
efficiencies and enhancing cash generation to deleverage. The sound group performance was however impacted by
hyperinflation accounting, with the Zimbabwean dollar depreciating 72% against the rand since 31 March 2022 and
distorting the consolidated results. While PPC Zimbabwe continued to generate good cash returns and US$4,4million in
dividends were paid to the group during the period under review, analysing the results excluding PPC Zimbabwe is more
meaningful due to the impact of hyperinflation accounting. The results below are shown both including and excluding the
Zimbabwe operations.
Excluding PPC Zimbabwe, revenue for the six months ended 30 September 2022, increased 9% to R4,248 million (September
2021: R3,893 million) supported by period-on-period price increases, while cement volumes were 1% down on the comparable
period. Including the impact of PPC Zimbabwe, which contributes 17% (September 2021: 24%), group revenue decreased by 1%
to R5,103 million (September 2021: R5,131 million).
Excluding PPC Zimbabwe's cost of sales and administration and other operating expenditure for both periods, the cost increase
amounts to 11,3%, which is below input cost inflation experienced in the current six-month period to 30 September 2022.
Including PPC Zimbabwe, cost of sales and administration and other operating expenditure increased by 6,4% to R4,820 million
(September 2021: R4 530 million).
Group EBITDA, excluding PPC Zimbabwe, decreased by 12% toR580 million (September 2021: R658 million) and EBITDA margins
declined to 13,7% (September 2021:16,9%) as higher energy costs and increased competition in PPC's core South African
market compressed margins despite a strong performance in the Rwandan business. Group EBITDA, including PPC Zimbabwe,
declined by 23% to R728 million (September 2021: R945 million).
Fair value and foreign exchange movements resulted in a gain of R82 million (September 2021: R1 million loss), mainly due to
the significant depreciation of the Zimbabwean dollar against the United States dollar, which resulted in foreign exchange
gains on net monetary items.
Finance costs decreased by 43% to R84 million (September 2021: R147 million), due to the continued successful de-gearing
of the group and lower interest costs following the implementation of improved facility arrangements in South Africa in
December 2021.
During the current period, the group realised a net profit on the disposal of equity accounted investments of R23 million
(September 2021: Nil) from the sale of Habesha.
Profit from continuing operations before tax, but excluding PPC Zimbabwe, increased by 4% from R250 million to R259 million.
When the impact of PPC Zimbabwe is included, which is inclusive of the net monetary loss of R206 million (30 September 2021:
R440 million gain), the group profit from continuing operations before tax would have decreased from R981 million to
R106 million.
Taxation decreased to R84 million (September 2021: R201 million). The current period effective tax rate was negatively affected
by a once-off de-recognition of a deferred tax asset in PPC Ltd and the impact of PPC Zimbabwe hyperinflation, resulting in an
effective tax rate of 79% (September 2021: 20%).
Earnings per share (EPS) and headline earnings per share (HEPS) decreased respectively from 53 cents to a loss of 3 cents and
from 55 cents to a loss of 5 cents. This is primarily due to the reported EPS and HEPS numbers being impacted as follows:
1. Lower earnings generation in South Africa and Botswana cement and aggregates, readymix and ash segments and PPC Zimbabwe.
2. The full impact of the strong CIMERWA performance not flowing fully to EPS and HEPS given the operations are 51% held by PPC.
3. Hyperinflation accounting in terms of IAS29 for PPC Zimbabwe including a significant negative swing in the net monetary impact
in the income statement from a positive R440 million in the prior period to a negative R206 million in the current period.
Excluding PPC Zimbabwe, EPS decreased from 8 cents to 5 cents and HEPS decreased from 10 cents to 4 cents.
Net cash inflow before financing activities remains positive at R319 million (September 2021: R502 million) as cash generation
remains a priority.
Group net debt declined to R677 million on 30 September 2022 (March 2022: R1 009 million) due to positive cash generation and
strict capital allocation discipline.
SOUTH AFRICA AND BOTSWANA CEMENT
Increases in sales volumes in the coastal region, due to strong demand and a decrease in imports, were offset by difficult
trading conditions in the inland region. This left cement sales volumes in South Africa and Botswana down 2,6% period-on-period
for the six months ended September 2022.
The coastal region continues to experience an upswing in cement due to a recovery in industrial construction activity and the
resumption of postponed government projects. In addition, a decrease in cement imports into the Western Cape due to global supply
chain constraints and a weaker rand positively impacted PPC's cement sales volumes to the retail segment.
The inland region saw above-average seasonal rainfall at the beginning of FY23 and a subdued macroeconomic backdrop. This resulted
in a decline in cement sales to both the retail and construction segments. In addition, the recent flooding in the KZN region
lowered cement consumption in that region. As a result, cement destined for that market made its way to the inland region and
thereby intensified the competitive pressures further in an already depressed market. The construction of distribution centres
and housing estates supported cement sales to the industrial segment in the inland region.
PPC estimates that cement and clinker imports decreased by 32% relative to the prior comparable period. Although this
has provided a much-needed respite for the domestic producers, imports threaten the long-term sustainability of the
South African cement industry as domestic cement production capacity exceeds current demand. PPC and other industry
players continue to engage with the relevant authorities on the need to protect the industry from unfair competition.
During the period under review, PPC increased selling prices by an average of 5% and saw a positive impact from changes
in the product mix. It also continued to be successful with its cost-control efforts. However, this was insufficient to
fully recoup the significantly higher fuel and energy costs keeping EBITDA margins under pressure.
For the six months ended September 2022, PPC South Africa and Botswana cement revenue increased by 4% to R2,865 million
(September 2021: R2,753 million), however EBITDA declined by 29% to R368 million (September 2021: R515 million) with a
margin of 12,2%.
Net debt for SA and Botswana declined from R1,075 million at 31 March 2022 to R935 million at 30 September 2022, a de-gearing
of R140 million.
AGGREGATES, READYMIX AND ASH
For the six months ended 30 September 2022, the readymix businesses experienced increased demand and market share gains due to
the exit of some competitors from the market. Readymix volumes increased by 5% period-on-period, while aggregates volumes
decreased by 15% period-on-period. In addition, fly ash sales volumes declined by 27% period-on-period from a high base, as ash
sales in the previous period benefited from a lack of alternative extenders such as slag. Overall revenue for the materials
division increased by 2% to R612 million (September 2021: R600 million), due to the increase in sales of readymix. EBITDA reduced
to a loss of R14 million (September 2021: R37 million profit).
INTERNATIONAL
Rwanda
For the six months ended 30 September 2022, CIMERWA's cement sales volumes increased by 11% period-on-period. Increased
demand from government-sponsored infrastructure projects and a resurgence in general building activity aided CIMERWA's
domestic cement sales. In addition, cement exports benefited from sustained demand in the eastern Democratic Republic
of Congo and the expansion of CIMERWA's route-to-market initiatives. Cement volumes also benefited from improved industrial
performance and plant reliability. CIMERWA's efforts to enhance industrial performance and reliability are yielding tangible results.
Revenue in rand for the six months ended 30 September 2022 increased by 43% to R771 million (September 2021: R539 million).
EBITDA increased by 63% to R249 million (September 2021: R153 million) and EBITDA margin improved to 32,3% (September 2021: 28,4%).
CIMERWA also de-geared and ended the period under review with cash holdings of R345 million.
Zimbabwe
Due to a planned kiln shutdown, required for maintenance, PPC Zimbabwe's cement sales volumes declined 13% period-on-period.
However, following the resumption of clinker production at the end of May 2022, PPC Zimbabwe's cement sales volumes improved
in the second quarter of FY23 relative to the first quarter of FY23 with a continued robust cement demand from residential
construction and government-funded infrastructure projects.
PPC Zimbabwe implemented US$ price increases of 5% in March 2022, 2% in April 2022 and a further 5% increase in August 2022 to
recover input cost inflation. Further, PPC observed an increase in foreign currency availability in the Zimbabwean economy, with
over 80% of cement sales occurring in foreign currency during the period under review. PPC received a $3,7 million dividend in
December 2021 and an additional US$4,4 million in dividends in June 2022.
Revenue decreased by 31% to R855 million (September 2021: R1,239 million) due to the impact of the planned kiln
maintenance and the depreciation in the Zimbabwean dollar against the rand. EBITDA declined by 48% to R148 million
(September 2021: R287 million) with a reduced EBITDA margin of 17,3% (September 2021: 23,2%). EBITDA and EBITDA margin
were adversely impacted by the procurement of clinker from South Africa and Zambia as a way to offset the impact of the
kiln shutdown during a high demand period. Imported clinker, including transport, is more expensive than PPC Zimbabwe's
own clinker manufacturing costs. In addition, the shutdown of the kiln incurred once-off additional maintenance costs,
which negatively impacted the EBITDA margin.
As at 30 September 2022, PPC Zimbabwe held R253 million in hard currency cash.
OUTLOOK
In light of the current economic climate, the group will continue to improve cash generation and operational
efficiencies in an effort to further strengthen its financial position and reduce the impact of rising input cost
inflation. Without a significant increase in infrastructure spending and tangible action against imports, South
Africa's cement demand is expected to remain subdued. PPC South Africa is well positioned to benefit from an increase
in cement demand with additional capacity available to capture an upswing in demand without additional capital
expenditure required. PPC Zimbabwe anticipates a further recovery for the balance of the financial year thereby
restoring its profitability to historical levels and the outlook for CIMERWA remains positive.
On behalf of the board
PJ Moleketi R van Wijnen B Berlin
Chairman Chief executive officer Chief financial officer
Sandton
21 November 2022
SHORT FORM STATEMENT
This short form announcement is the responsibility of the directors. It is only a summary of the information contained
in the full announcement and does not contain full or complete details. Any investment decision should be based on the
full announcement accessible from Monday, 21 November 2022, via the JSE link and also available on the Company's
website at https://www.ppc.africa/investors-relations/reports/?t=interim
A copy of the full announcement is also available for inspection at the company's registered office and may be requested
from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours.
A live and recorded video webcast of the results presentation will be held tomorrow at 10:00am (SAST) and can be
accessed via this link: https://www.corpcam.com/PPC21112022
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/PPC/PPC30Sep.pdf
Registered office:
148 Katherine Street,
Sandton, South Africa
(PO Box 787416, Sandton, 2146,
South Africa)
DIRECTORS:
PJ Moleketi (chair), R van Wijnen* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo, CH Naude,
D Smith, MR Thompson
*Dutch **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
http://www.ppc.africa
Date: 21-11-2022 01:10:00
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.
https://senspdf.jse.co.za/documents/2022/jse/isse/ppc/PPC30Sep.pdf
Group Results for the six months ended 30 September 2022
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(PPC or the company or the group)
SHORT FORM ANNOUNCEMENT GROUP RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 2022
SALIENT FEATURES - CONTINUING OPERATIONS
GROUP RESULTS EXCLUDING PPC ZIMBABWE
- Group revenue increased 9% to R4 248 million (September 2021: R3 893 million)
- Group EBITDA margins declined to 13,7% (September 2021: 16,9%)
- Profit before tax increased by 4% from R250 million to R259 million
- Net debt for the SA and Botswana group improved by R140 million
- EPS decreased from 8 cents to 5 cents
- HEPS decreased from 10 cents to 4 cents
PPC ZIMBABWE
- Planned kiln shutdown reduced volumes by 13% despite robust cement demand
- Hyperinflation materially impacted reported results
- Contribution to revenue reduced to 17% (September 2021: 24%)
- Dividends of US$4,4 million paid to the group
- The group did not declare a dividend for the current or previous period
COMMENTARY OVERVIEW
Roland van Wijnen, CEO, said: "I am pleased that our strategic initiatives have enabled PPC to maintain its
market-leading position in its core Southern African markets and continue to reduce debt, despite challenging and
competitive trading conditions. We are in a strong financial position to weather the local economic cycle and are well
placed to supply any increase in demand as the roll-out of the South African government's infrastructure development
plans gain momentum. I thank our valued customers for their enduring support. I also thank all my colleagues for their
hard work, commitment, and dedication."
GROUP PERFORMANCE - CONTINUING OPERATIONS
PPC delivered a sound performance under challenging operating conditions through continued focus on driving cost
efficiencies and enhancing cash generation to deleverage. The sound group performance was however impacted by
hyperinflation accounting, with the Zimbabwean dollar depreciating 72% against the rand since 31 March 2022 and
distorting the consolidated results. While PPC Zimbabwe continued to generate good cash returns and US$4,4million in
dividends were paid to the group during the period under review, analysing the results excluding PPC Zimbabwe is more
meaningful due to the impact of hyperinflation accounting. The results below are shown both including and excluding the
Zimbabwe operations.
Excluding PPC Zimbabwe, revenue for the six months ended 30 September 2022, increased 9% to R4,248 million (September
2021: R3,893 million) supported by period-on-period price increases, while cement volumes were 1% down on the comparable
period. Including the impact of PPC Zimbabwe, which contributes 17% (September 2021: 24%), group revenue decreased by 1%
to R5,103 million (September 2021: R5,131 million).
Excluding PPC Zimbabwe's cost of sales and administration and other operating expenditure for both periods, the cost increase
amounts to 11,3%, which is below input cost inflation experienced in the current six-month period to 30 September 2022.
Including PPC Zimbabwe, cost of sales and administration and other operating expenditure increased by 6,4% to R4,820 million
(September 2021: R4 530 million).
Group EBITDA, excluding PPC Zimbabwe, decreased by 12% toR580 million (September 2021: R658 million) and EBITDA margins
declined to 13,7% (September 2021:16,9%) as higher energy costs and increased competition in PPC's core South African
market compressed margins despite a strong performance in the Rwandan business. Group EBITDA, including PPC Zimbabwe,
declined by 23% to R728 million (September 2021: R945 million).
Fair value and foreign exchange movements resulted in a gain of R82 million (September 2021: R1 million loss), mainly due to
the significant depreciation of the Zimbabwean dollar against the United States dollar, which resulted in foreign exchange
gains on net monetary items.
Finance costs decreased by 43% to R84 million (September 2021: R147 million), due to the continued successful de-gearing
of the group and lower interest costs following the implementation of improved facility arrangements in South Africa in
December 2021.
During the current period, the group realised a net profit on the disposal of equity accounted investments of R23 million
(September 2021: Nil) from the sale of Habesha.
Profit from continuing operations before tax, but excluding PPC Zimbabwe, increased by 4% from R250 million to R259 million.
When the impact of PPC Zimbabwe is included, which is inclusive of the net monetary loss of R206 million (30 September 2021:
R440 million gain), the group profit from continuing operations before tax would have decreased from R981 million to
R106 million.
Taxation decreased to R84 million (September 2021: R201 million). The current period effective tax rate was negatively affected
by a once-off de-recognition of a deferred tax asset in PPC Ltd and the impact of PPC Zimbabwe hyperinflation, resulting in an
effective tax rate of 79% (September 2021: 20%).
Earnings per share (EPS) and headline earnings per share (HEPS) decreased respectively from 53 cents to a loss of 3 cents and
from 55 cents to a loss of 5 cents. This is primarily due to the reported EPS and HEPS numbers being impacted as follows:
1. Lower earnings generation in South Africa and Botswana cement and aggregates, readymix and ash segments and PPC Zimbabwe.
2. The full impact of the strong CIMERWA performance not flowing fully to EPS and HEPS given the operations are 51% held by PPC.
3. Hyperinflation accounting in terms of IAS29 for PPC Zimbabwe including a significant negative swing in the net monetary impact
in the income statement from a positive R440 million in the prior period to a negative R206 million in the current period.
Excluding PPC Zimbabwe, EPS decreased from 8 cents to 5 cents and HEPS decreased from 10 cents to 4 cents.
Net cash inflow before financing activities remains positive at R319 million (September 2021: R502 million) as cash generation
remains a priority.
Group net debt declined to R677 million on 30 September 2022 (March 2022: R1 009 million) due to positive cash generation and
strict capital allocation discipline.
SOUTH AFRICA AND BOTSWANA CEMENT
Increases in sales volumes in the coastal region, due to strong demand and a decrease in imports, were offset by difficult
trading conditions in the inland region. This left cement sales volumes in South Africa and Botswana down 2,6% period-on-period
for the six months ended September 2022.
The coastal region continues to experience an upswing in cement due to a recovery in industrial construction activity and the
resumption of postponed government projects. In addition, a decrease in cement imports into the Western Cape due to global supply
chain constraints and a weaker rand positively impacted PPC's cement sales volumes to the retail segment.
The inland region saw above-average seasonal rainfall at the beginning of FY23 and a subdued macroeconomic backdrop. This resulted
in a decline in cement sales to both the retail and construction segments. In addition, the recent flooding in the KZN region
lowered cement consumption in that region. As a result, cement destined for that market made its way to the inland region and
thereby intensified the competitive pressures further in an already depressed market. The construction of distribution centres
and housing estates supported cement sales to the industrial segment in the inland region.
PPC estimates that cement and clinker imports decreased by 32% relative to the prior comparable period. Although this
has provided a much-needed respite for the domestic producers, imports threaten the long-term sustainability of the
South African cement industry as domestic cement production capacity exceeds current demand. PPC and other industry
players continue to engage with the relevant authorities on the need to protect the industry from unfair competition.
During the period under review, PPC increased selling prices by an average of 5% and saw a positive impact from changes
in the product mix. It also continued to be successful with its cost-control efforts. However, this was insufficient to
fully recoup the significantly higher fuel and energy costs keeping EBITDA margins under pressure.
For the six months ended September 2022, PPC South Africa and Botswana cement revenue increased by 4% to R2,865 million
(September 2021: R2,753 million), however EBITDA declined by 29% to R368 million (September 2021: R515 million) with a
margin of 12,2%.
Net debt for SA and Botswana declined from R1,075 million at 31 March 2022 to R935 million at 30 September 2022, a de-gearing
of R140 million.
AGGREGATES, READYMIX AND ASH
For the six months ended 30 September 2022, the readymix businesses experienced increased demand and market share gains due to
the exit of some competitors from the market. Readymix volumes increased by 5% period-on-period, while aggregates volumes
decreased by 15% period-on-period. In addition, fly ash sales volumes declined by 27% period-on-period from a high base, as ash
sales in the previous period benefited from a lack of alternative extenders such as slag. Overall revenue for the materials
division increased by 2% to R612 million (September 2021: R600 million), due to the increase in sales of readymix. EBITDA reduced
to a loss of R14 million (September 2021: R37 million profit).
INTERNATIONAL
Rwanda
For the six months ended 30 September 2022, CIMERWA's cement sales volumes increased by 11% period-on-period. Increased
demand from government-sponsored infrastructure projects and a resurgence in general building activity aided CIMERWA's
domestic cement sales. In addition, cement exports benefited from sustained demand in the eastern Democratic Republic
of Congo and the expansion of CIMERWA's route-to-market initiatives. Cement volumes also benefited from improved industrial
performance and plant reliability. CIMERWA's efforts to enhance industrial performance and reliability are yielding tangible results.
Revenue in rand for the six months ended 30 September 2022 increased by 43% to R771 million (September 2021: R539 million).
EBITDA increased by 63% to R249 million (September 2021: R153 million) and EBITDA margin improved to 32,3% (September 2021: 28,4%).
CIMERWA also de-geared and ended the period under review with cash holdings of R345 million.
Zimbabwe
Due to a planned kiln shutdown, required for maintenance, PPC Zimbabwe's cement sales volumes declined 13% period-on-period.
However, following the resumption of clinker production at the end of May 2022, PPC Zimbabwe's cement sales volumes improved
in the second quarter of FY23 relative to the first quarter of FY23 with a continued robust cement demand from residential
construction and government-funded infrastructure projects.
PPC Zimbabwe implemented US$ price increases of 5% in March 2022, 2% in April 2022 and a further 5% increase in August 2022 to
recover input cost inflation. Further, PPC observed an increase in foreign currency availability in the Zimbabwean economy, with
over 80% of cement sales occurring in foreign currency during the period under review. PPC received a $3,7 million dividend in
December 2021 and an additional US$4,4 million in dividends in June 2022.
Revenue decreased by 31% to R855 million (September 2021: R1,239 million) due to the impact of the planned kiln
maintenance and the depreciation in the Zimbabwean dollar against the rand. EBITDA declined by 48% to R148 million
(September 2021: R287 million) with a reduced EBITDA margin of 17,3% (September 2021: 23,2%). EBITDA and EBITDA margin
were adversely impacted by the procurement of clinker from South Africa and Zambia as a way to offset the impact of the
kiln shutdown during a high demand period. Imported clinker, including transport, is more expensive than PPC Zimbabwe's
own clinker manufacturing costs. In addition, the shutdown of the kiln incurred once-off additional maintenance costs,
which negatively impacted the EBITDA margin.
As at 30 September 2022, PPC Zimbabwe held R253 million in hard currency cash.
OUTLOOK
In light of the current economic climate, the group will continue to improve cash generation and operational
efficiencies in an effort to further strengthen its financial position and reduce the impact of rising input cost
inflation. Without a significant increase in infrastructure spending and tangible action against imports, South
Africa's cement demand is expected to remain subdued. PPC South Africa is well positioned to benefit from an increase
in cement demand with additional capacity available to capture an upswing in demand without additional capital
expenditure required. PPC Zimbabwe anticipates a further recovery for the balance of the financial year thereby
restoring its profitability to historical levels and the outlook for CIMERWA remains positive.
On behalf of the board
PJ Moleketi R van Wijnen B Berlin
Chairman Chief executive officer Chief financial officer
Sandton
21 November 2022
SHORT FORM STATEMENT
This short form announcement is the responsibility of the directors. It is only a summary of the information contained
in the full announcement and does not contain full or complete details. Any investment decision should be based on the
full announcement accessible from Monday, 21 November 2022, via the JSE link and also available on the Company's
website at https://www.ppc.africa/investors-relations/reports/?t=interim
A copy of the full announcement is also available for inspection at the company's registered office and may be requested
from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours.
A live and recorded video webcast of the results presentation will be held tomorrow at 10:00am (SAST) and can be
accessed via this link: https://www.corpcam.com/PPC21112022
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/PPC/PPC30Sep.pdf
Registered office:
148 Katherine Street,
Sandton, South Africa
(PO Box 787416, Sandton, 2146,
South Africa)
DIRECTORS:
PJ Moleketi (chair), R van Wijnen* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo, CH Naude,
D Smith, MR Thompson
*Dutch **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
http://www.ppc.africa
Date: 21-11-2022 01:10:00
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.
2022/11/21
CANCELLATION OF S468618 Group Results of the six months ended 30 September 2022
View ArticleCANCELLATION OF S468618 Group Results of the six months ended 30 September 2022
CANCELLATION OF S468618 Group Results of the six months ended 30 September 2022
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(PPC or the company or the group)
SHORT FORM ANNOUNCEMENT GROUP RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 2022
SALIENT FEATURES - CONTINUING OPERATIONS
GROUP RESULTS EXCLUDING PPC ZIMBABWE
- Group revenue increased 9% to R4 248 million (September 2021: R3 893 million)
- Group EBITDA margins declined to 13,7% (September 2021: 16,9%)
- Profit before tax increased by 4% from R250 million to R259 million
- Net debt for the SA and Botswana group improved by R140 million
- EPS decreased from 8 cents to 5 cents
- HEPS decreased from 10 cents to 4 cents
PPC ZIMBABWE
- Planned kiln shutdown reduced volumes by 13% despite robust cement demand
- Hyperinflation materially impacted reported results
- Contribution to revenue reduced to 17% (September 2021: 24%)
- Dividends of US$4,4 million paid to the group
- The group did not declare a dividend for the current or previous period
COMMENTARY OVERVIEW
Roland van Wijnen, CEO, said: "I am pleased that our strategic initiatives have enabled PPC to maintain its
market-leading position in its core Southern African markets and continue to reduce debt, despite challenging and
competitive trading conditions. We are in a strong financial position to weather the local economic cycle and are well
placed to supply any increase in demand as the roll-out of the South African government's infrastructure development
plans gain momentum. I thank our valued customers for their enduring support. I also thank all my colleagues for their
hard work, commitment, and dedication."
GROUP PERFORMANCE - CONTINUING OPERATIONS
PPC delivered a sound performance under challenging operating conditions through continued focus on driving cost
efficiencies and enhancing cash generation to deleverage. The sound group performance was however impacted by
hyperinflation accounting, with the Zimbabwean dollar depreciating 72% against the rand since 31 March 2022 and
distorting the consolidated results. While PPC Zimbabwe continued to generate good cash returns and US$4,4million in
dividends were paid to the group during the period under review, analysing the results excluding PPC Zimbabwe is more
meaningful due to the impact of hyperinflation accounting. The results below are shown both including and excluding the
Zimbabwe operations.
Excluding PPC Zimbabwe, revenue for the six months ended 30 September 2022, increased 9% to R4,248 million (September
2021: R3,893 million) supported by period-on-period price increases, while cement volumes were 1% down on the comparable
period. Including the impact of PPC Zimbabwe, which contributes 17% (September 2021: 24%), group revenue decreased by 1%
to R5,103 million (September 2021: R5,131 million).
Excluding PPC Zimbabwe's cost of sales and administration and other operating expenditure for both periods, the cost increase
amounts to 11,3%, which is below input cost inflation experienced in the current six-month period to 30 September 2022.
Including PPC Zimbabwe, cost of sales and administration and other operating expenditure increased by 6,4% to R4,820 million
(September 2021: R4 530 million).
Group EBITDA, excluding PPC Zimbabwe, decreased by 12% toR580 million (September 2021: R658 million) and EBITDA margins
declined to 13,7% (September 2021:16,9%) as higher energy costs and increased competition in PPC's core South African
market compressed margins despite a strong performance in the Rwandan business. Group EBITDA, including PPC Zimbabwe,
declined by 23% to R728 million (September 2021: R945 million).
Fair value and foreign exchange movements resulted in a gain of R82 million (September 2021: R1 million loss), mainly due to
the significant depreciation of the Zimbabwean dollar against the United States dollar, which resulted in foreign exchange
gains on net monetary items.
Finance costs decreased by 43% to R84 million (September 2021: R147 million), due to the continued successful de-gearing
of the group and lower interest costs following the implementation of improved facility arrangements in South Africa in
December 2021.
During the current period, the group realised a net profit on the disposal of equity accounted investments of R23 million
(September 2021: Nil) from the sale of Habesha.
Profit from continuing operations before tax, but excluding PPC Zimbabwe, increased by 4% from R250 million to R259 million.
When the impact of PPC Zimbabwe is included, which is inclusive of the net monetary loss of R206 million (30 September 2021:
R440 million gain), the group profit from continuing operations before tax would have decreased from R981 million to
R106 million.
Taxation decreased to R84 million (September 2021: R201 million). The current period effective tax rate was negatively affected
by a once-off de-recognition of a deferred tax asset in PPC Ltd and the impact of PPC Zimbabwe hyperinflation, resulting in an
effective tax rate of 79% (September 2021: 20%).
Earnings per share (EPS) and headline earnings per share (HEPS) decreased respectively from 53 cents to a loss of 3 cents and
from 55 cents to a loss of 5 cents. This is primarily due to the reported EPS and HEPS numbers being impacted as follows:
1. Lower earnings generation in South Africa and Botswana cement and aggregates, readymix and ash segments and PPC Zimbabwe.
2. The full impact of the strong CIMERWA performance not flowing fully to EPS and HEPS given the operations are 51% held by PPC.
3. Hyperinflation accounting in terms of IAS29 for PPC Zimbabwe including a significant negative swing in the net monetary impact
in the income statement from a positive R440 million in the prior period to a negative R206 million in the current period.
Excluding PPC Zimbabwe, EPS decreased from 8 cents to 5 cents and HEPS decreased from 10 cents to 4 cents.
Net cash inflow before financing activities remains positive at R319 million (September 2021: R502 million) as cash generation
remains a priority.
Group net debt declined to R677 million on 30 September 2022 (March 2022: R1 009 million) due to positive cash generation and
strict capital allocation discipline.
SOUTH AFRICA AND BOTSWANA CEMENT
Increases in sales volumes in the coastal region, due to strong demand and a decrease in imports, were offset by difficult
trading conditions in the inland region. This left cement sales volumes in South Africa and Botswana down 2,6% period-on-period
for the six months ended September 2022.
The coastal region continues to experience an upswing in cement due to a recovery in industrial construction activity and the
resumption of postponed government projects. In addition, a decrease in cement imports into the Western Cape due to global supply
chain constraints and a weaker rand positively impacted PPC's cement sales volumes to the retail segment.
The inland region saw above-average seasonal rainfall at the beginning of FY23 and a subdued macroeconomic backdrop. This resulted
in a decline in cement sales to both the retail and construction segments. In addition, the recent flooding in the KZN region
lowered cement consumption in that region. As a result, cement destined for that market made its way to the inland region and
thereby intensified the competitive pressures further in an already depressed market. The construction of distribution centres
and housing estates supported cement sales to the industrial segment in the inland region.
PPC estimates that cement and clinker imports decreased by 32% relative to the prior comparable period. Although this
has provided a much-needed respite for the domestic producers, imports threaten the long-term sustainability of the
South African cement industry as domestic cement production capacity exceeds current demand. PPC and other industry
players continue to engage with the relevant authorities on the need to protect the industry from unfair competition.
During the period under review, PPC increased selling prices by an average of 5% and saw a positive impact from changes
in the product mix. It also continued to be successful with its cost-control efforts. However, this was insufficient to
fully recoup the significantly higher fuel and energy costs keeping EBITDA margins under pressure.
For the six months ended September 2022, PPC South Africa and Botswana cement revenue increased by 4% to R2,865 million
(September 2021: R2,753 million), however EBITDA declined by 29% to R368 million (September 2021: R515 million) with a
margin of 12,2%.
Net debt for SA and Botswana declined from R1,075 million at 31 March 2022 to R935 million at 30 September 2022, a de-gearing
of R140 million.
AGGREGATES, READYMIX AND ASH
For the six months ended 30 September 2022, the readymix businesses experienced increased demand and market share gains due to
the exit of some competitors from the market. Readymix volumes increased by 5% period-on-period, while aggregates volumes
decreased by 15% period-on-period. In addition, fly ash sales volumes declined by 27% period-on-period from a high base, as ash
sales in the previous period benefited from a lack of alternative extenders such as slag. Overall revenue for the materials
division increased by 2% to R612 million (September 2021: R600 million), due to the increase in sales of readymix. EBITDA reduced
to a loss of R14 million (September 2021: R37 million profit).
INTERNATIONAL
Rwanda
For the six months ended 30 September 2022, CIMERWA's cement sales volumes increased by 11% period-on-period. Increased
demand from government-sponsored infrastructure projects and a resurgence in general building activity aided CIMERWA's
domestic cement sales. In addition, cement exports benefited from sustained demand in the eastern Democratic Republic
of Congo and the expansion of CIMERWA's route-to-market initiatives. Cement volumes also benefited from improved industrial
performance and plant reliability. CIMERWA's efforts to enhance industrial performance and reliability are yielding tangible results.
Revenue in rand for the six months ended 30 September 2022 increased by 43% to R771 million (September 2021: R539 million).
EBITDA increased by 63% to R249 million (September 2021: R153 million) and EBITDA margin improved to 32,3% (September 2021: 28,4%).
CIMERWA also de-geared and ended the period under review with cash holdings of R345 million.
Zimbabwe
Due to a planned kiln shutdown, required for maintenance, PPC Zimbabwe's cement sales volumes declined 13% period-on-period.
However, following the resumption of clinker production at the end of May 2022, PPC Zimbabwe's cement sales volumes improved
in the second quarter of FY23 relative to the first quarter of FY23 with a continued robust cement demand from residential
construction and government-funded infrastructure projects.
PPC Zimbabwe implemented US$ price increases of 5% in March 2022, 2% in April 2022 and a further 5% increase in August 2022 to
recover input cost inflation. Further, PPC observed an increase in foreign currency availability in the Zimbabwean economy, with
over 80% of cement sales occurring in foreign currency during the period under review. PPC received a $3,7 million dividend in
December 2021 and an additional US$4,4 million in dividends in June 2022.
Revenue decreased by 31% to R855 million (September 2021: R1,239 million) due to the impact of the planned kiln
maintenance and the depreciation in the Zimbabwean dollar against the rand. EBITDA declined by 48% to R148 million
(September 2021: R287 million) with a reduced EBITDA margin of 17,3% (September 2021: 23,2%). EBITDA and EBITDA margin
were adversely impacted by the procurement of clinker from South Africa and Zambia as a way to offset the impact of the
kiln shutdown during a high demand period. Imported clinker, including transport, is more expensive than PPC Zimbabwe's
own clinker manufacturing costs. In addition, the shutdown of the kiln incurred once-off additional maintenance costs,
which negatively impacted the EBITDA margin.
As at 30 September 2022, PPC Zimbabwe held R253 million in hard currency cash.
OUTLOOK
In light of the current economic climate, the group will continue to improve cash generation and operational
efficiencies in an effort to further strengthen its financial position and reduce the impact of rising input cost
inflation. Without a significant increase in infrastructure spending and tangible action against imports, South
Africa's cement demand is expected to remain subdued. PPC South Africa is well positioned to benefit from an increase
in cement demand with additional capacity available to capture an upswing in demand without additional capital
expenditure required. PPC Zimbabwe anticipates a further recovery for the balance of the financial year thereby
restoring its profitability to historical levels and the outlook for CIMERWA remains positive.
On behalf of the board
PJ Moleketi R van Wijnen B Berlin
Chairman Chief executive officer Chief financial officer
Sandton
21 November 2022
SHORT FORM STATEMENT
This short form announcement is the responsibility of the directors. It is only a summary of the information contained
in the full announcement and does not contain full or complete details. Any investment decision should be based on the
full announcement accessible from Monday, 21 November 2022, via the JSE link and also available on the Company's
website at https://www.ppc.africa/investors-relations/reports/?t=interim
A copy of the full announcement is also available for inspection at the company's registered office and may be requested
from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours.
A live and recorded video webcast of the results presentation will be held tomorrow at 10:00am (SAST) and can be
accessed via this link: https://www.corpcam.com/PPC21112022
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/PPC/PPC30Sep.pdf
Registered office:
148 Katherine Street,
Sandton, South Africa
(PO Box 787416, Sandton, 2146,
South Africa)
DIRECTORS:
PJ Moleketi (chair), R van Wijnen* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo, CH Naude,
D Smith, MR Thompson
*Dutch **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
http://www.ppc.africa
Date: 21-11-2022 01:09:59
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(PPC or the company or the group)
SHORT FORM ANNOUNCEMENT GROUP RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 2022
SALIENT FEATURES - CONTINUING OPERATIONS
GROUP RESULTS EXCLUDING PPC ZIMBABWE
- Group revenue increased 9% to R4 248 million (September 2021: R3 893 million)
- Group EBITDA margins declined to 13,7% (September 2021: 16,9%)
- Profit before tax increased by 4% from R250 million to R259 million
- Net debt for the SA and Botswana group improved by R140 million
- EPS decreased from 8 cents to 5 cents
- HEPS decreased from 10 cents to 4 cents
PPC ZIMBABWE
- Planned kiln shutdown reduced volumes by 13% despite robust cement demand
- Hyperinflation materially impacted reported results
- Contribution to revenue reduced to 17% (September 2021: 24%)
- Dividends of US$4,4 million paid to the group
- The group did not declare a dividend for the current or previous period
COMMENTARY OVERVIEW
Roland van Wijnen, CEO, said: "I am pleased that our strategic initiatives have enabled PPC to maintain its
market-leading position in its core Southern African markets and continue to reduce debt, despite challenging and
competitive trading conditions. We are in a strong financial position to weather the local economic cycle and are well
placed to supply any increase in demand as the roll-out of the South African government's infrastructure development
plans gain momentum. I thank our valued customers for their enduring support. I also thank all my colleagues for their
hard work, commitment, and dedication."
GROUP PERFORMANCE - CONTINUING OPERATIONS
PPC delivered a sound performance under challenging operating conditions through continued focus on driving cost
efficiencies and enhancing cash generation to deleverage. The sound group performance was however impacted by
hyperinflation accounting, with the Zimbabwean dollar depreciating 72% against the rand since 31 March 2022 and
distorting the consolidated results. While PPC Zimbabwe continued to generate good cash returns and US$4,4million in
dividends were paid to the group during the period under review, analysing the results excluding PPC Zimbabwe is more
meaningful due to the impact of hyperinflation accounting. The results below are shown both including and excluding the
Zimbabwe operations.
Excluding PPC Zimbabwe, revenue for the six months ended 30 September 2022, increased 9% to R4,248 million (September
2021: R3,893 million) supported by period-on-period price increases, while cement volumes were 1% down on the comparable
period. Including the impact of PPC Zimbabwe, which contributes 17% (September 2021: 24%), group revenue decreased by 1%
to R5,103 million (September 2021: R5,131 million).
Excluding PPC Zimbabwe's cost of sales and administration and other operating expenditure for both periods, the cost increase
amounts to 11,3%, which is below input cost inflation experienced in the current six-month period to 30 September 2022.
Including PPC Zimbabwe, cost of sales and administration and other operating expenditure increased by 6,4% to R4,820 million
(September 2021: R4 530 million).
Group EBITDA, excluding PPC Zimbabwe, decreased by 12% toR580 million (September 2021: R658 million) and EBITDA margins
declined to 13,7% (September 2021:16,9%) as higher energy costs and increased competition in PPC's core South African
market compressed margins despite a strong performance in the Rwandan business. Group EBITDA, including PPC Zimbabwe,
declined by 23% to R728 million (September 2021: R945 million).
Fair value and foreign exchange movements resulted in a gain of R82 million (September 2021: R1 million loss), mainly due to
the significant depreciation of the Zimbabwean dollar against the United States dollar, which resulted in foreign exchange
gains on net monetary items.
Finance costs decreased by 43% to R84 million (September 2021: R147 million), due to the continued successful de-gearing
of the group and lower interest costs following the implementation of improved facility arrangements in South Africa in
December 2021.
During the current period, the group realised a net profit on the disposal of equity accounted investments of R23 million
(September 2021: Nil) from the sale of Habesha.
Profit from continuing operations before tax, but excluding PPC Zimbabwe, increased by 4% from R250 million to R259 million.
When the impact of PPC Zimbabwe is included, which is inclusive of the net monetary loss of R206 million (30 September 2021:
R440 million gain), the group profit from continuing operations before tax would have decreased from R981 million to
R106 million.
Taxation decreased to R84 million (September 2021: R201 million). The current period effective tax rate was negatively affected
by a once-off de-recognition of a deferred tax asset in PPC Ltd and the impact of PPC Zimbabwe hyperinflation, resulting in an
effective tax rate of 79% (September 2021: 20%).
Earnings per share (EPS) and headline earnings per share (HEPS) decreased respectively from 53 cents to a loss of 3 cents and
from 55 cents to a loss of 5 cents. This is primarily due to the reported EPS and HEPS numbers being impacted as follows:
1. Lower earnings generation in South Africa and Botswana cement and aggregates, readymix and ash segments and PPC Zimbabwe.
2. The full impact of the strong CIMERWA performance not flowing fully to EPS and HEPS given the operations are 51% held by PPC.
3. Hyperinflation accounting in terms of IAS29 for PPC Zimbabwe including a significant negative swing in the net monetary impact
in the income statement from a positive R440 million in the prior period to a negative R206 million in the current period.
Excluding PPC Zimbabwe, EPS decreased from 8 cents to 5 cents and HEPS decreased from 10 cents to 4 cents.
Net cash inflow before financing activities remains positive at R319 million (September 2021: R502 million) as cash generation
remains a priority.
Group net debt declined to R677 million on 30 September 2022 (March 2022: R1 009 million) due to positive cash generation and
strict capital allocation discipline.
SOUTH AFRICA AND BOTSWANA CEMENT
Increases in sales volumes in the coastal region, due to strong demand and a decrease in imports, were offset by difficult
trading conditions in the inland region. This left cement sales volumes in South Africa and Botswana down 2,6% period-on-period
for the six months ended September 2022.
The coastal region continues to experience an upswing in cement due to a recovery in industrial construction activity and the
resumption of postponed government projects. In addition, a decrease in cement imports into the Western Cape due to global supply
chain constraints and a weaker rand positively impacted PPC's cement sales volumes to the retail segment.
The inland region saw above-average seasonal rainfall at the beginning of FY23 and a subdued macroeconomic backdrop. This resulted
in a decline in cement sales to both the retail and construction segments. In addition, the recent flooding in the KZN region
lowered cement consumption in that region. As a result, cement destined for that market made its way to the inland region and
thereby intensified the competitive pressures further in an already depressed market. The construction of distribution centres
and housing estates supported cement sales to the industrial segment in the inland region.
PPC estimates that cement and clinker imports decreased by 32% relative to the prior comparable period. Although this
has provided a much-needed respite for the domestic producers, imports threaten the long-term sustainability of the
South African cement industry as domestic cement production capacity exceeds current demand. PPC and other industry
players continue to engage with the relevant authorities on the need to protect the industry from unfair competition.
During the period under review, PPC increased selling prices by an average of 5% and saw a positive impact from changes
in the product mix. It also continued to be successful with its cost-control efforts. However, this was insufficient to
fully recoup the significantly higher fuel and energy costs keeping EBITDA margins under pressure.
For the six months ended September 2022, PPC South Africa and Botswana cement revenue increased by 4% to R2,865 million
(September 2021: R2,753 million), however EBITDA declined by 29% to R368 million (September 2021: R515 million) with a
margin of 12,2%.
Net debt for SA and Botswana declined from R1,075 million at 31 March 2022 to R935 million at 30 September 2022, a de-gearing
of R140 million.
AGGREGATES, READYMIX AND ASH
For the six months ended 30 September 2022, the readymix businesses experienced increased demand and market share gains due to
the exit of some competitors from the market. Readymix volumes increased by 5% period-on-period, while aggregates volumes
decreased by 15% period-on-period. In addition, fly ash sales volumes declined by 27% period-on-period from a high base, as ash
sales in the previous period benefited from a lack of alternative extenders such as slag. Overall revenue for the materials
division increased by 2% to R612 million (September 2021: R600 million), due to the increase in sales of readymix. EBITDA reduced
to a loss of R14 million (September 2021: R37 million profit).
INTERNATIONAL
Rwanda
For the six months ended 30 September 2022, CIMERWA's cement sales volumes increased by 11% period-on-period. Increased
demand from government-sponsored infrastructure projects and a resurgence in general building activity aided CIMERWA's
domestic cement sales. In addition, cement exports benefited from sustained demand in the eastern Democratic Republic
of Congo and the expansion of CIMERWA's route-to-market initiatives. Cement volumes also benefited from improved industrial
performance and plant reliability. CIMERWA's efforts to enhance industrial performance and reliability are yielding tangible results.
Revenue in rand for the six months ended 30 September 2022 increased by 43% to R771 million (September 2021: R539 million).
EBITDA increased by 63% to R249 million (September 2021: R153 million) and EBITDA margin improved to 32,3% (September 2021: 28,4%).
CIMERWA also de-geared and ended the period under review with cash holdings of R345 million.
Zimbabwe
Due to a planned kiln shutdown, required for maintenance, PPC Zimbabwe's cement sales volumes declined 13% period-on-period.
However, following the resumption of clinker production at the end of May 2022, PPC Zimbabwe's cement sales volumes improved
in the second quarter of FY23 relative to the first quarter of FY23 with a continued robust cement demand from residential
construction and government-funded infrastructure projects.
PPC Zimbabwe implemented US$ price increases of 5% in March 2022, 2% in April 2022 and a further 5% increase in August 2022 to
recover input cost inflation. Further, PPC observed an increase in foreign currency availability in the Zimbabwean economy, with
over 80% of cement sales occurring in foreign currency during the period under review. PPC received a $3,7 million dividend in
December 2021 and an additional US$4,4 million in dividends in June 2022.
Revenue decreased by 31% to R855 million (September 2021: R1,239 million) due to the impact of the planned kiln
maintenance and the depreciation in the Zimbabwean dollar against the rand. EBITDA declined by 48% to R148 million
(September 2021: R287 million) with a reduced EBITDA margin of 17,3% (September 2021: 23,2%). EBITDA and EBITDA margin
were adversely impacted by the procurement of clinker from South Africa and Zambia as a way to offset the impact of the
kiln shutdown during a high demand period. Imported clinker, including transport, is more expensive than PPC Zimbabwe's
own clinker manufacturing costs. In addition, the shutdown of the kiln incurred once-off additional maintenance costs,
which negatively impacted the EBITDA margin.
As at 30 September 2022, PPC Zimbabwe held R253 million in hard currency cash.
OUTLOOK
In light of the current economic climate, the group will continue to improve cash generation and operational
efficiencies in an effort to further strengthen its financial position and reduce the impact of rising input cost
inflation. Without a significant increase in infrastructure spending and tangible action against imports, South
Africa's cement demand is expected to remain subdued. PPC South Africa is well positioned to benefit from an increase
in cement demand with additional capacity available to capture an upswing in demand without additional capital
expenditure required. PPC Zimbabwe anticipates a further recovery for the balance of the financial year thereby
restoring its profitability to historical levels and the outlook for CIMERWA remains positive.
On behalf of the board
PJ Moleketi R van Wijnen B Berlin
Chairman Chief executive officer Chief financial officer
Sandton
21 November 2022
SHORT FORM STATEMENT
This short form announcement is the responsibility of the directors. It is only a summary of the information contained
in the full announcement and does not contain full or complete details. Any investment decision should be based on the
full announcement accessible from Monday, 21 November 2022, via the JSE link and also available on the Company's
website at https://www.ppc.africa/investors-relations/reports/?t=interim
A copy of the full announcement is also available for inspection at the company's registered office and may be requested
from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours.
A live and recorded video webcast of the results presentation will be held tomorrow at 10:00am (SAST) and can be
accessed via this link: https://www.corpcam.com/PPC21112022
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/PPC/PPC30Sep.pdf
Registered office:
148 Katherine Street,
Sandton, South Africa
(PO Box 787416, Sandton, 2146,
South Africa)
DIRECTORS:
PJ Moleketi (chair), R van Wijnen* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo, CH Naude,
D Smith, MR Thompson
*Dutch **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
http://www.ppc.africa
Date: 21-11-2022 01:09:59
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.
Group Results of the six months ended 30 September 2022
Click below to view full PDF article
https://senspdf.jse.co.za/documents/2022/jse/isse/ppc/PPC30Sep.pdf
Group Results of the six months ended 30 September 2022
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(PPC or the company or the group)
SHORT FORM ANNOUNCEMENT GROUP RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 2022
SALIENT FEATURES - CONTINUING OPERATIONS
GROUP RESULTS EXCLUDING PPC ZIMBABWE
- Group revenue increased 9% to R4 248 million (September 2021: R3 893 million)
- Group EBITDA margins declined to 13,7% (September 2021: 16,9%)
- Profit before tax increased by 4% from R250 million to R259 million
- Net debt for the SA and Botswana group improved by R140 million
- EPS decreased from 8 cents to 5 cents
- HEPS decreased from 10 cents to 4 cents
PPC ZIMBABWE
- Planned kiln shutdown reduced volumes by 13% despite robust cement demand
- Hyperinflation materially impacted reported results
- Contribution to revenue reduced to 17% (September 2021: 24%)
- Dividends of US$4,4 million paid to the group
- The group did not declare a dividend for the current or previous period
COMMENTARY OVERVIEW
Roland van Wijnen, CEO, said: "I am pleased that our strategic initiatives have enabled PPC to maintain its
market-leading position in its core Southern African markets and continue to reduce debt, despite challenging and
competitive trading conditions. We are in a strong financial position to weather the local economic cycle and are well
placed to supply any increase in demand as the roll-out of the South African government's infrastructure development
plans gain momentum. I thank our valued customers for their enduring support. I also thank all my colleagues for their
hard work, commitment, and dedication."
GROUP PERFORMANCE - CONTINUING OPERATIONS
PPC delivered a sound performance under challenging operating conditions through continued focus on driving cost
efficiencies and enhancing cash generation to deleverage. The sound group performance was however impacted by
hyperinflation accounting, with the Zimbabwean dollar depreciating 72% against the rand since 31 March 2022 and
distorting the consolidated results. While PPC Zimbabwe continued to generate good cash returns and US$4,4million in
dividends were paid to the group during the period under review, analysing the results excluding PPC Zimbabwe is more
meaningful due to the impact of hyperinflation accounting. The results below are shown both including and excluding the
Zimbabwe operations.
Excluding PPC Zimbabwe, revenue for the six months ended 30 September 2022, increased 9% to R4,248 million (September
2021: R3,893 million) supported by period-on-period price increases, while cement volumes were 1% down on the comparable
period. Including the impact of PPC Zimbabwe, which contributes 17% (September 2021: 24%), group revenue decreased by 1%
to R5,103 million (September 2021: R5,131 million).
Excluding PPC Zimbabwe's cost of sales and administration and other operating expenditure for both periods, the cost increase
amounts to 11,3%, which is below input cost inflation experienced in the current six-month period to 30 September 2022.
Including PPC Zimbabwe, cost of sales and administration and other operating expenditure increased by 6,4% to R4,820 million
(September 2021: R4 530 million).
Group EBITDA, excluding PPC Zimbabwe, decreased by 12% toR580 million (September 2021: R658 million) and EBITDA margins
declined to 13,7% (September 2021:16,9%) as higher energy costs and increased competition in PPC's core South African
market compressed margins despite a strong performance in the Rwandan business. Group EBITDA, including PPC Zimbabwe,
declined by 23% to R728 million (September 2021: R945 million).
Fair value and foreign exchange movements resulted in a gain of R82 million (September 2021: R1 million loss), mainly due to
the significant depreciation of the Zimbabwean dollar against the United States dollar, which resulted in foreign exchange
gains on net monetary items.
Finance costs decreased by 43% to R84 million (September 2021: R147 million), due to the continued successful de-gearing
of the group and lower interest costs following the implementation of improved facility arrangements in South Africa in
December 2021.
During the current period, the group realised a net profit on the disposal of equity accounted investments of R23 million
(September 2021: Nil) from the sale of Habesha.
Profit from continuing operations before tax, but excluding PPC Zimbabwe, increased by 4% from R250 million to R259 million.
When the impact of PPC Zimbabwe is included, which is inclusive of the net monetary loss of R206 million (30 September 2021:
R440 million gain), the group profit from continuing operations before tax would have decreased from R981 million to
R106 million.
Taxation decreased to R84 million (September 2021: R201 million). The current period effective tax rate was negatively affected
by a once-off de-recognition of a deferred tax asset in PPC Ltd and the impact of PPC Zimbabwe hyperinflation, resulting in an
effective tax rate of 79% (September 2021: 20%).
Earnings per share (EPS) and headline earnings per share (HEPS) decreased respectively from 53 cents to a loss of 3 cents and
from 55 cents to a loss of 5 cents. This is primarily due to the reported EPS and HEPS numbers being impacted as follows:
1. Lower earnings generation in South Africa and Botswana cement and aggregates, readymix and ash segments and PPC Zimbabwe.
2. The full impact of the strong CIMERWA performance not flowing fully to EPS and HEPS given the operations are 51% held by PPC.
3. Hyperinflation accounting in terms of IAS29 for PPC Zimbabwe including a significant negative swing in the net monetary impact
in the income statement from a positive R440 million in the prior period to a negative R206 million in the current period.
Excluding PPC Zimbabwe, EPS decreased from 8 cents to 5 cents and HEPS decreased from 10 cents to 4 cents.
Net cash inflow before financing activities remains positive at R319 million (September 2021: R502 million) as cash generation
remains a priority.
Group net debt declined to R677 million on 30 September 2022 (March 2022: R1 009 million) due to positive cash generation and
strict capital allocation discipline.
SOUTH AFRICA AND BOTSWANA CEMENT
Increases in sales volumes in the coastal region, due to strong demand and a decrease in imports, were offset by difficult
trading conditions in the inland region. This left cement sales volumes in South Africa and Botswana down 2,6% period-on-period
for the six months ended September 2022.
The coastal region continues to experience an upswing in cement due to a recovery in industrial construction activity and the
resumption of postponed government projects. In addition, a decrease in cement imports into the Western Cape due to global supply
chain constraints and a weaker rand positively impacted PPC's cement sales volumes to the retail segment.
The inland region saw above-average seasonal rainfall at the beginning of FY23 and a subdued macroeconomic backdrop. This resulted
in a decline in cement sales to both the retail and construction segments. In addition, the recent flooding in the KZN region
lowered cement consumption in that region. As a result, cement destined for that market made its way to the inland region and
thereby intensified the competitive pressures further in an already depressed market. The construction of distribution centres
and housing estates supported cement sales to the industrial segment in the inland region.
PPC estimates that cement and clinker imports decreased by 32% relative to the prior comparable period. Although this
has provided a much-needed respite for the domestic producers, imports threaten the long-term sustainability of the
South African cement industry as domestic cement production capacity exceeds current demand. PPC and other industry
players continue to engage with the relevant authorities on the need to protect the industry from unfair competition.
During the period under review, PPC increased selling prices by an average of 5% and saw a positive impact from changes
in the product mix. It also continued to be successful with its cost-control efforts. However, this was insufficient to
fully recoup the significantly higher fuel and energy costs keeping EBITDA margins under pressure.
For the six months ended September 2022, PPC South Africa and Botswana cement revenue increased by 4% to R2,865 million
(September 2021: R2,753 million), however EBITDA declined by 29% to R368 million (September 2021: R515 million) with a
margin of 12,2%.
Net debt for SA and Botswana declined from R1,075 million at 31 March 2022 to R935 million at 30 September 2022, a de-gearing
of R140 million.
AGGREGATES, READYMIX AND ASH
For the six months ended 30 September 2022, the readymix businesses experienced increased demand and market share gains due to
the exit of some competitors from the market. Readymix volumes increased by 5% period-on-period, while aggregates volumes
decreased by 15% period-on-period. In addition, fly ash sales volumes declined by 27% period-on-period from a high base, as ash
sales in the previous period benefited from a lack of alternative extenders such as slag. Overall revenue for the materials
division increased by 2% to R612 million (September 2021: R600 million), due to the increase in sales of readymix. EBITDA reduced
to a loss of R14 million (September 2021: R37 million profit).
INTERNATIONAL
Rwanda
For the six months ended 30 September 2022, CIMERWA's cement sales volumes increased by 11% period-on-period. Increased
demand from government-sponsored infrastructure projects and a resurgence in general building activity aided CIMERWA's
domestic cement sales. In addition, cement exports benefited from sustained demand in the eastern Democratic Republic
of Congo and the expansion of CIMERWA's route-to-market initiatives. Cement volumes also benefited from improved industrial
performance and plant reliability. CIMERWA's efforts to enhance industrial performance and reliability are yielding tangible results.
Revenue in rand for the six months ended 30 September 2022 increased by 43% to R771 million (September 2021: R539 million).
EBITDA increased by 63% to R249 million (September 2021: R153 million) and EBITDA margin improved to 32,3% (September 2021: 28,4%).
CIMERWA also de-geared and ended the period under review with cash holdings of R345 million.
Zimbabwe
Due to a planned kiln shutdown, required for maintenance, PPC Zimbabwe's cement sales volumes declined 13% period-on-period.
However, following the resumption of clinker production at the end of May 2022, PPC Zimbabwe's cement sales volumes improved
in the second quarter of FY23 relative to the first quarter of FY23 with a continued robust cement demand from residential
construction and government-funded infrastructure projects.
PPC Zimbabwe implemented US$ price increases of 5% in March 2022, 2% in April 2022 and a further 5% increase in August 2022 to
recover input cost inflation. Further, PPC observed an increase in foreign currency availability in the Zimbabwean economy, with
over 80% of cement sales occurring in foreign currency during the period under review. PPC received a $3,7 million dividend in
December 2021 and an additional US$4,4 million in dividends in June 2022.
Revenue decreased by 31% to R855 million (September 2021: R1,239 million) due to the impact of the planned kiln
maintenance and the depreciation in the Zimbabwean dollar against the rand. EBITDA declined by 48% to R148 million
(September 2021: R287 million) with a reduced EBITDA margin of 17,3% (September 2021: 23,2%). EBITDA and EBITDA margin
were adversely impacted by the procurement of clinker from South Africa and Zambia as a way to offset the impact of the
kiln shutdown during a high demand period. Imported clinker, including transport, is more expensive than PPC Zimbabwe's
own clinker manufacturing costs. In addition, the shutdown of the kiln incurred once-off additional maintenance costs,
which negatively impacted the EBITDA margin.
As at 30 September 2022, PPC Zimbabwe held R253 million in hard currency cash.
OUTLOOK
In light of the current economic climate, the group will continue to improve cash generation and operational
efficiencies in an effort to further strengthen its financial position and reduce the impact of rising input cost
inflation. Without a significant increase in infrastructure spending and tangible action against imports, South
Africa's cement demand is expected to remain subdued. PPC South Africa is well positioned to benefit from an increase
in cement demand with additional capacity available to capture an upswing in demand without additional capital
expenditure required. PPC Zimbabwe anticipates a further recovery for the balance of the financial year thereby
restoring its profitability to historical levels and the outlook for CIMERWA remains positive.
On behalf of the board
PJ Moleketi R van Wijnen B Berlin
Chairman Chief executive officer Chief financial officer
Sandton
21 November 2022
SHORT FORM STATEMENT
This short form announcement is the responsibility of the directors. It is only a summary of the information contained
in the full announcement and does not contain full or complete details. Any investment decision should be based on the
full announcement accessible from Monday, 21 November 2022, via the JSE link and also available on the Company's
website at https://www.ppc.africa/investors-relations/reports/?t=interim
A copy of the full announcement is also available for inspection at the company's registered office and may be requested
from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours.
A live and recorded video webcast of the results presentation will be held tomorrow at 10:00am (SAST) and can be
accessed via this link: https://www.corpcam.com/PPC21112022
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/PPC/PPC30Sep.pdf
Registered office:
148 Katherine Street,
Sandton, South Africa
(PO Box 787416, Sandton, 2146,
South Africa)
DIRECTORS:
PJ Moleketi (chair), R van Wijnen* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo, CH Naude,
D Smith, MR Thompson
*Dutch **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
http://www.ppc.africa
Date: 21-11-2022 07:30:00
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.
https://senspdf.jse.co.za/documents/2022/jse/isse/ppc/PPC30Sep.pdf
Group Results of the six months ended 30 September 2022
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(PPC or the company or the group)
SHORT FORM ANNOUNCEMENT GROUP RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 2022
SALIENT FEATURES - CONTINUING OPERATIONS
GROUP RESULTS EXCLUDING PPC ZIMBABWE
- Group revenue increased 9% to R4 248 million (September 2021: R3 893 million)
- Group EBITDA margins declined to 13,7% (September 2021: 16,9%)
- Profit before tax increased by 4% from R250 million to R259 million
- Net debt for the SA and Botswana group improved by R140 million
- EPS decreased from 8 cents to 5 cents
- HEPS decreased from 10 cents to 4 cents
PPC ZIMBABWE
- Planned kiln shutdown reduced volumes by 13% despite robust cement demand
- Hyperinflation materially impacted reported results
- Contribution to revenue reduced to 17% (September 2021: 24%)
- Dividends of US$4,4 million paid to the group
- The group did not declare a dividend for the current or previous period
COMMENTARY OVERVIEW
Roland van Wijnen, CEO, said: "I am pleased that our strategic initiatives have enabled PPC to maintain its
market-leading position in its core Southern African markets and continue to reduce debt, despite challenging and
competitive trading conditions. We are in a strong financial position to weather the local economic cycle and are well
placed to supply any increase in demand as the roll-out of the South African government's infrastructure development
plans gain momentum. I thank our valued customers for their enduring support. I also thank all my colleagues for their
hard work, commitment, and dedication."
GROUP PERFORMANCE - CONTINUING OPERATIONS
PPC delivered a sound performance under challenging operating conditions through continued focus on driving cost
efficiencies and enhancing cash generation to deleverage. The sound group performance was however impacted by
hyperinflation accounting, with the Zimbabwean dollar depreciating 72% against the rand since 31 March 2022 and
distorting the consolidated results. While PPC Zimbabwe continued to generate good cash returns and US$4,4million in
dividends were paid to the group during the period under review, analysing the results excluding PPC Zimbabwe is more
meaningful due to the impact of hyperinflation accounting. The results below are shown both including and excluding the
Zimbabwe operations.
Excluding PPC Zimbabwe, revenue for the six months ended 30 September 2022, increased 9% to R4,248 million (September
2021: R3,893 million) supported by period-on-period price increases, while cement volumes were 1% down on the comparable
period. Including the impact of PPC Zimbabwe, which contributes 17% (September 2021: 24%), group revenue decreased by 1%
to R5,103 million (September 2021: R5,131 million).
Excluding PPC Zimbabwe's cost of sales and administration and other operating expenditure for both periods, the cost increase
amounts to 11,3%, which is below input cost inflation experienced in the current six-month period to 30 September 2022.
Including PPC Zimbabwe, cost of sales and administration and other operating expenditure increased by 6,4% to R4,820 million
(September 2021: R4 530 million).
Group EBITDA, excluding PPC Zimbabwe, decreased by 12% toR580 million (September 2021: R658 million) and EBITDA margins
declined to 13,7% (September 2021:16,9%) as higher energy costs and increased competition in PPC's core South African
market compressed margins despite a strong performance in the Rwandan business. Group EBITDA, including PPC Zimbabwe,
declined by 23% to R728 million (September 2021: R945 million).
Fair value and foreign exchange movements resulted in a gain of R82 million (September 2021: R1 million loss), mainly due to
the significant depreciation of the Zimbabwean dollar against the United States dollar, which resulted in foreign exchange
gains on net monetary items.
Finance costs decreased by 43% to R84 million (September 2021: R147 million), due to the continued successful de-gearing
of the group and lower interest costs following the implementation of improved facility arrangements in South Africa in
December 2021.
During the current period, the group realised a net profit on the disposal of equity accounted investments of R23 million
(September 2021: Nil) from the sale of Habesha.
Profit from continuing operations before tax, but excluding PPC Zimbabwe, increased by 4% from R250 million to R259 million.
When the impact of PPC Zimbabwe is included, which is inclusive of the net monetary loss of R206 million (30 September 2021:
R440 million gain), the group profit from continuing operations before tax would have decreased from R981 million to
R106 million.
Taxation decreased to R84 million (September 2021: R201 million). The current period effective tax rate was negatively affected
by a once-off de-recognition of a deferred tax asset in PPC Ltd and the impact of PPC Zimbabwe hyperinflation, resulting in an
effective tax rate of 79% (September 2021: 20%).
Earnings per share (EPS) and headline earnings per share (HEPS) decreased respectively from 53 cents to a loss of 3 cents and
from 55 cents to a loss of 5 cents. This is primarily due to the reported EPS and HEPS numbers being impacted as follows:
1. Lower earnings generation in South Africa and Botswana cement and aggregates, readymix and ash segments and PPC Zimbabwe.
2. The full impact of the strong CIMERWA performance not flowing fully to EPS and HEPS given the operations are 51% held by PPC.
3. Hyperinflation accounting in terms of IAS29 for PPC Zimbabwe including a significant negative swing in the net monetary impact
in the income statement from a positive R440 million in the prior period to a negative R206 million in the current period.
Excluding PPC Zimbabwe, EPS decreased from 8 cents to 5 cents and HEPS decreased from 10 cents to 4 cents.
Net cash inflow before financing activities remains positive at R319 million (September 2021: R502 million) as cash generation
remains a priority.
Group net debt declined to R677 million on 30 September 2022 (March 2022: R1 009 million) due to positive cash generation and
strict capital allocation discipline.
SOUTH AFRICA AND BOTSWANA CEMENT
Increases in sales volumes in the coastal region, due to strong demand and a decrease in imports, were offset by difficult
trading conditions in the inland region. This left cement sales volumes in South Africa and Botswana down 2,6% period-on-period
for the six months ended September 2022.
The coastal region continues to experience an upswing in cement due to a recovery in industrial construction activity and the
resumption of postponed government projects. In addition, a decrease in cement imports into the Western Cape due to global supply
chain constraints and a weaker rand positively impacted PPC's cement sales volumes to the retail segment.
The inland region saw above-average seasonal rainfall at the beginning of FY23 and a subdued macroeconomic backdrop. This resulted
in a decline in cement sales to both the retail and construction segments. In addition, the recent flooding in the KZN region
lowered cement consumption in that region. As a result, cement destined for that market made its way to the inland region and
thereby intensified the competitive pressures further in an already depressed market. The construction of distribution centres
and housing estates supported cement sales to the industrial segment in the inland region.
PPC estimates that cement and clinker imports decreased by 32% relative to the prior comparable period. Although this
has provided a much-needed respite for the domestic producers, imports threaten the long-term sustainability of the
South African cement industry as domestic cement production capacity exceeds current demand. PPC and other industry
players continue to engage with the relevant authorities on the need to protect the industry from unfair competition.
During the period under review, PPC increased selling prices by an average of 5% and saw a positive impact from changes
in the product mix. It also continued to be successful with its cost-control efforts. However, this was insufficient to
fully recoup the significantly higher fuel and energy costs keeping EBITDA margins under pressure.
For the six months ended September 2022, PPC South Africa and Botswana cement revenue increased by 4% to R2,865 million
(September 2021: R2,753 million), however EBITDA declined by 29% to R368 million (September 2021: R515 million) with a
margin of 12,2%.
Net debt for SA and Botswana declined from R1,075 million at 31 March 2022 to R935 million at 30 September 2022, a de-gearing
of R140 million.
AGGREGATES, READYMIX AND ASH
For the six months ended 30 September 2022, the readymix businesses experienced increased demand and market share gains due to
the exit of some competitors from the market. Readymix volumes increased by 5% period-on-period, while aggregates volumes
decreased by 15% period-on-period. In addition, fly ash sales volumes declined by 27% period-on-period from a high base, as ash
sales in the previous period benefited from a lack of alternative extenders such as slag. Overall revenue for the materials
division increased by 2% to R612 million (September 2021: R600 million), due to the increase in sales of readymix. EBITDA reduced
to a loss of R14 million (September 2021: R37 million profit).
INTERNATIONAL
Rwanda
For the six months ended 30 September 2022, CIMERWA's cement sales volumes increased by 11% period-on-period. Increased
demand from government-sponsored infrastructure projects and a resurgence in general building activity aided CIMERWA's
domestic cement sales. In addition, cement exports benefited from sustained demand in the eastern Democratic Republic
of Congo and the expansion of CIMERWA's route-to-market initiatives. Cement volumes also benefited from improved industrial
performance and plant reliability. CIMERWA's efforts to enhance industrial performance and reliability are yielding tangible results.
Revenue in rand for the six months ended 30 September 2022 increased by 43% to R771 million (September 2021: R539 million).
EBITDA increased by 63% to R249 million (September 2021: R153 million) and EBITDA margin improved to 32,3% (September 2021: 28,4%).
CIMERWA also de-geared and ended the period under review with cash holdings of R345 million.
Zimbabwe
Due to a planned kiln shutdown, required for maintenance, PPC Zimbabwe's cement sales volumes declined 13% period-on-period.
However, following the resumption of clinker production at the end of May 2022, PPC Zimbabwe's cement sales volumes improved
in the second quarter of FY23 relative to the first quarter of FY23 with a continued robust cement demand from residential
construction and government-funded infrastructure projects.
PPC Zimbabwe implemented US$ price increases of 5% in March 2022, 2% in April 2022 and a further 5% increase in August 2022 to
recover input cost inflation. Further, PPC observed an increase in foreign currency availability in the Zimbabwean economy, with
over 80% of cement sales occurring in foreign currency during the period under review. PPC received a $3,7 million dividend in
December 2021 and an additional US$4,4 million in dividends in June 2022.
Revenue decreased by 31% to R855 million (September 2021: R1,239 million) due to the impact of the planned kiln
maintenance and the depreciation in the Zimbabwean dollar against the rand. EBITDA declined by 48% to R148 million
(September 2021: R287 million) with a reduced EBITDA margin of 17,3% (September 2021: 23,2%). EBITDA and EBITDA margin
were adversely impacted by the procurement of clinker from South Africa and Zambia as a way to offset the impact of the
kiln shutdown during a high demand period. Imported clinker, including transport, is more expensive than PPC Zimbabwe's
own clinker manufacturing costs. In addition, the shutdown of the kiln incurred once-off additional maintenance costs,
which negatively impacted the EBITDA margin.
As at 30 September 2022, PPC Zimbabwe held R253 million in hard currency cash.
OUTLOOK
In light of the current economic climate, the group will continue to improve cash generation and operational
efficiencies in an effort to further strengthen its financial position and reduce the impact of rising input cost
inflation. Without a significant increase in infrastructure spending and tangible action against imports, South
Africa's cement demand is expected to remain subdued. PPC South Africa is well positioned to benefit from an increase
in cement demand with additional capacity available to capture an upswing in demand without additional capital
expenditure required. PPC Zimbabwe anticipates a further recovery for the balance of the financial year thereby
restoring its profitability to historical levels and the outlook for CIMERWA remains positive.
On behalf of the board
PJ Moleketi R van Wijnen B Berlin
Chairman Chief executive officer Chief financial officer
Sandton
21 November 2022
SHORT FORM STATEMENT
This short form announcement is the responsibility of the directors. It is only a summary of the information contained
in the full announcement and does not contain full or complete details. Any investment decision should be based on the
full announcement accessible from Monday, 21 November 2022, via the JSE link and also available on the Company's
website at https://www.ppc.africa/investors-relations/reports/?t=interim
A copy of the full announcement is also available for inspection at the company's registered office and may be requested
from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours.
A live and recorded video webcast of the results presentation will be held tomorrow at 10:00am (SAST) and can be
accessed via this link: https://www.corpcam.com/PPC21112022
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/PPC/PPC30Sep.pdf
Registered office:
148 Katherine Street,
Sandton, South Africa
(PO Box 787416, Sandton, 2146,
South Africa)
DIRECTORS:
PJ Moleketi (chair), R van Wijnen* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo, CH Naude,
D Smith, MR Thompson
*Dutch **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
http://www.ppc.africa
Date: 21-11-2022 07:30:00
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.
2022/11/16
Trading Statement and Operation Update for the six months ended 30 September 2022
View ArticleTrading Statement and Operation Update for the six months ended 30 September 2022
Trading Statement and Operation Update for the six months ended 30 September 2022
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “company” or “group”)
TRADING STATEMENT AND OPERATIONAL UPDATE FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
PPC is currently finalising its results for the six months ended 30 September 2022 (“the current
period”).
Roland van Wijnen, chief executive officer of PPC provides the following context:
“The PPC group continues to deliver sound cash generation and deleverage the balance sheet despite
difficult trading conditions in its core South African and Botswana cement market, offset by positive
trading conditions in its Zimbabwe and Rwanda (CIMERWA) operations. To maintain volumes in the
South African and Botswana cement markets, sales price increases were limited to 5% in the period
under review. Key input costs, especially those related to fuel and energy, increased at double-digits
in percentage terms. Whilst various cost mitigation initiatives are underway, these actions take time
to implement, and for the period under review were not able to fully offset cost increases, resulting
in EBITDA margin compression. CIMERWA delivered strong results based on continuous operational
improvements and solid market dynamics. We remain focused on mitigating inflationary cost
pressures as much as possible and being prudent in our capital allocation in this business. As expected,
PPC Zimbabwe’s financial performance was negatively impacted by a planned kiln shut down during
the first quarter but has since recovered and is experiencing robust demand while the business
maintains its ability to repatriate dividends. Hyperinflation in Zimbabwe skews the group’s results and
analysing the group excluding Zimbabwe is therefore more meaningful. Looking forward, we are
encouraged by the recent announcements by SANRAL to award large construction projects in South
Africa as well as the comments on increased infrastructure spending made in the recent mid-term
budget speech of the South African Minister of Finance. PPC is well positioned to benefit from
increased cement demand to support the much-needed construction work across South Africa.”
South Africa and Botswana Cement
Increases in sales volumes in the coastal region due to stronger demand and a decrease in imports
were offset by difficult trading conditions in the inland region leaving cement sales volumes slightly
down overall by 2.6%. Revenues increased by 4% assisted by price increases and product mix. Despite
cost control efforts, margin levels remained under pressure due to significantly higher fuel and energy
costs and decreased from 18.7% to 12.2%. EBITDA decreased from R515 million to R368 million
(28.5%) for the current period. Cash generation remained robust with net debt reducing by R140
million during the current period to R935 million.
CIMERWA
CIMERWA’s volumes increased by 11% and EBITDA increased by 63% to R249 million (September
2021: R153 million), with margins improving period-on-period from 28.4% to 32.3%. CIMERWA also
de-geared and ended the current period with cash holdings of R345 million.
PPC Zimbabwe
Despite robust cement demand from residential construction and government-funded infrastructure
projects, PPC Zimbabwe’s volumes declined period-on-period by 13% due to the planned kiln shut-
down in the first quarter and margins were negatively affected by the use of imported clinker primarily
from PPC South Africa and increased maintenance costs. Volumes, compared to the first quarter,
increased during the second quarter of the current period. The reported numbers are materially
impacted by hyperinflation accounting with reported EBITDA declining 48% to R148 million
(September 2021: R287 million), with margins reducing from 23.2% to 17.3%. PPC observed an
increase in foreign currency availability in the Zimbabwe economy and PPC Zimbabwe paid a dividend
of US$4.4 million to PPC in June 2022. PPC Zimbabwe ended the current period with R253 million in
hard currency cash.
Group
The impact of the above-mentioned factors on the group’s operations resulted in group EBITDA
declining by 23% to R728 million (September 2021: R945 million). Excluding PPC Zimbabwe, with its
related hyperinflation accounting adjustments, EBITDA decreased by 12% compared to the six months
ended September 2021.
The net debt of the group continued to improve, with group net debt reducing to R677 million on 30
September 2022 (March 2022: R1 009 million).
Shareholders are advised that PPC is satisfied that a reasonable degree of certainty exists that the
expected earnings per share (“EPS”) and headline earning per share (“HEPS”) for the current period
will differ by at least 20% from that for the previous corresponding period, being the six months ended
30 September 2021 ("the prior period") and that a trading statement is required in terms of the JSE
Limited Listing Requirements.
This is primarily due to the reported EPS and HEPS numbers being impacted as follows:
1. Lower earnings generation in South Africa and Botswana cement and aggregates, readymix and
ash segments and PPC Zimbabwe.
2. The full impact of the positive impact of the strong CIMERWA performance not flowing fully to
EPS and HEPS given the operations are 51% held by PPC.
3. Hyperinflation accounting in terms of IAS29 for PPC Zimbabwe including a significant negative
swing in the net monetary impact in the income statement from a positive R440 million in the
prior period to a negative R206 million in the current period.
4. The impact of discontinued operations which resulted in a R153 million positive contribution in
the prior period and a R107 million negative contribution in the current period.
The group accounted for its PPC Lime, Botswana Aggregates and PPC Barnet DRC businesses as
discontinued operations in the prior period while in the current period, PPC Barnet DRC was accounted
for as a discontinued operation up to 29 April 2022 after which it was accounted for as an investment
in an associate.
EPS for the group, including discontinued operations, for the current period is expected to be a loss of
between 7 cents and 11 cents per share, compared to the 61 cents per share profit for the prior period.
Headline loss per share for the current period for the group is expected to be between 4 cents per
share and 8 cents per share, compared to the 42 cents per share profit for the prior period.
The following EPS and HEPS for continuing operations are expected
Current period Prior period Current period Prior period
Expectation range Actual Expectation range Actual
Including PPC Zimbabwe Excluding PPC Zimbabwe
1
EPS (cents) (1) to (5) 53 3 to 7 8
HEPS (cents) 1 (3) to (7) 55 2 to 6 10
1
brackets denote expected losses per share
The financial information on which this trading statement is based is the responsibility of the directors
of the company and has not been reviewed or reported on by the group's independent external
auditor. Full details of the groups’ performance will be contained in the group’s unaudited interim
financial statements for the six months ended 30 September 2022, which are expected to be released
on or about 21 November 2022.
Outlook
In light of the current economic climate, the group will continue to improve cash generation and
enhance operational efficiencies in an effort to further strengthen its financial position and reduce the
impact of rising input cost inflation. Without a significant increase in infrastructure investments,
cement demand in South Africa is anticipated to remain subdued. PPC South Africa is well positioned
to benefit from an increase in cement demand with additional capacity available to capture an
upswing in demand without additional capital expenditure required. PPC Zimbabwe anticipates a
recovery for the balance of the financial year and the outlook for CIMERWA remains positive.
Sandton
16 November 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 16-11-2022 07:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “company” or “group”)
TRADING STATEMENT AND OPERATIONAL UPDATE FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
PPC is currently finalising its results for the six months ended 30 September 2022 (“the current
period”).
Roland van Wijnen, chief executive officer of PPC provides the following context:
“The PPC group continues to deliver sound cash generation and deleverage the balance sheet despite
difficult trading conditions in its core South African and Botswana cement market, offset by positive
trading conditions in its Zimbabwe and Rwanda (CIMERWA) operations. To maintain volumes in the
South African and Botswana cement markets, sales price increases were limited to 5% in the period
under review. Key input costs, especially those related to fuel and energy, increased at double-digits
in percentage terms. Whilst various cost mitigation initiatives are underway, these actions take time
to implement, and for the period under review were not able to fully offset cost increases, resulting
in EBITDA margin compression. CIMERWA delivered strong results based on continuous operational
improvements and solid market dynamics. We remain focused on mitigating inflationary cost
pressures as much as possible and being prudent in our capital allocation in this business. As expected,
PPC Zimbabwe’s financial performance was negatively impacted by a planned kiln shut down during
the first quarter but has since recovered and is experiencing robust demand while the business
maintains its ability to repatriate dividends. Hyperinflation in Zimbabwe skews the group’s results and
analysing the group excluding Zimbabwe is therefore more meaningful. Looking forward, we are
encouraged by the recent announcements by SANRAL to award large construction projects in South
Africa as well as the comments on increased infrastructure spending made in the recent mid-term
budget speech of the South African Minister of Finance. PPC is well positioned to benefit from
increased cement demand to support the much-needed construction work across South Africa.”
South Africa and Botswana Cement
Increases in sales volumes in the coastal region due to stronger demand and a decrease in imports
were offset by difficult trading conditions in the inland region leaving cement sales volumes slightly
down overall by 2.6%. Revenues increased by 4% assisted by price increases and product mix. Despite
cost control efforts, margin levels remained under pressure due to significantly higher fuel and energy
costs and decreased from 18.7% to 12.2%. EBITDA decreased from R515 million to R368 million
(28.5%) for the current period. Cash generation remained robust with net debt reducing by R140
million during the current period to R935 million.
CIMERWA
CIMERWA’s volumes increased by 11% and EBITDA increased by 63% to R249 million (September
2021: R153 million), with margins improving period-on-period from 28.4% to 32.3%. CIMERWA also
de-geared and ended the current period with cash holdings of R345 million.
PPC Zimbabwe
Despite robust cement demand from residential construction and government-funded infrastructure
projects, PPC Zimbabwe’s volumes declined period-on-period by 13% due to the planned kiln shut-
down in the first quarter and margins were negatively affected by the use of imported clinker primarily
from PPC South Africa and increased maintenance costs. Volumes, compared to the first quarter,
increased during the second quarter of the current period. The reported numbers are materially
impacted by hyperinflation accounting with reported EBITDA declining 48% to R148 million
(September 2021: R287 million), with margins reducing from 23.2% to 17.3%. PPC observed an
increase in foreign currency availability in the Zimbabwe economy and PPC Zimbabwe paid a dividend
of US$4.4 million to PPC in June 2022. PPC Zimbabwe ended the current period with R253 million in
hard currency cash.
Group
The impact of the above-mentioned factors on the group’s operations resulted in group EBITDA
declining by 23% to R728 million (September 2021: R945 million). Excluding PPC Zimbabwe, with its
related hyperinflation accounting adjustments, EBITDA decreased by 12% compared to the six months
ended September 2021.
The net debt of the group continued to improve, with group net debt reducing to R677 million on 30
September 2022 (March 2022: R1 009 million).
Shareholders are advised that PPC is satisfied that a reasonable degree of certainty exists that the
expected earnings per share (“EPS”) and headline earning per share (“HEPS”) for the current period
will differ by at least 20% from that for the previous corresponding period, being the six months ended
30 September 2021 ("the prior period") and that a trading statement is required in terms of the JSE
Limited Listing Requirements.
This is primarily due to the reported EPS and HEPS numbers being impacted as follows:
1. Lower earnings generation in South Africa and Botswana cement and aggregates, readymix and
ash segments and PPC Zimbabwe.
2. The full impact of the positive impact of the strong CIMERWA performance not flowing fully to
EPS and HEPS given the operations are 51% held by PPC.
3. Hyperinflation accounting in terms of IAS29 for PPC Zimbabwe including a significant negative
swing in the net monetary impact in the income statement from a positive R440 million in the
prior period to a negative R206 million in the current period.
4. The impact of discontinued operations which resulted in a R153 million positive contribution in
the prior period and a R107 million negative contribution in the current period.
The group accounted for its PPC Lime, Botswana Aggregates and PPC Barnet DRC businesses as
discontinued operations in the prior period while in the current period, PPC Barnet DRC was accounted
for as a discontinued operation up to 29 April 2022 after which it was accounted for as an investment
in an associate.
EPS for the group, including discontinued operations, for the current period is expected to be a loss of
between 7 cents and 11 cents per share, compared to the 61 cents per share profit for the prior period.
Headline loss per share for the current period for the group is expected to be between 4 cents per
share and 8 cents per share, compared to the 42 cents per share profit for the prior period.
The following EPS and HEPS for continuing operations are expected
Current period Prior period Current period Prior period
Expectation range Actual Expectation range Actual
Including PPC Zimbabwe Excluding PPC Zimbabwe
1
EPS (cents) (1) to (5) 53 3 to 7 8
HEPS (cents) 1 (3) to (7) 55 2 to 6 10
1
brackets denote expected losses per share
The financial information on which this trading statement is based is the responsibility of the directors
of the company and has not been reviewed or reported on by the group's independent external
auditor. Full details of the groups’ performance will be contained in the group’s unaudited interim
financial statements for the six months ended 30 September 2022, which are expected to be released
on or about 21 November 2022.
Outlook
In light of the current economic climate, the group will continue to improve cash generation and
enhance operational efficiencies in an effort to further strengthen its financial position and reduce the
impact of rising input cost inflation. Without a significant increase in infrastructure investments,
cement demand in South Africa is anticipated to remain subdued. PPC South Africa is well positioned
to benefit from an increase in cement demand with additional capacity available to capture an
upswing in demand without additional capital expenditure required. PPC Zimbabwe anticipates a
recovery for the balance of the financial year and the outlook for CIMERWA remains positive.
Sandton
16 November 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 16-11-2022 07:30:00
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.
Vesting of shares in terms of Forfeitable Share Plan
Vesting of shares in terms of Forfeitable Share Plan
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
VESTING OF FORFEITABLE SHARES TO CHIEF EXECUTIVE OFFICER : FORFEITABLE SHARE PLAN 2011,
AS AMENDED
The following information is disclosed in respect of the vesting of PPC ordinary shares (“PPC Shares”)
to the Chief Executive Officer of the Company in terms of the Company’s Forfeitable Share Plan 2011,
as amended (“Forfeitable Share Plan”).
Name of Director: Roland Corstiaan van Wijnen
Designation: Chief Executive officer
Nature of transaction: Vesting of PPC Shares in terms of Forfeitable Share
Plan
Nature of trade: Off-market
Inception date: 1 October 2019
Vesting date: 1 October 2022
Number of PPC Shares: 1 311 715
Price per PPC Share on vesting date: R2.28
Total Value: R2 990 710.20
Nature of interest: Direct beneficial
Clearance obtained: Not applicable
In terms of the Forfeitable Share Plan and as announced on SENS on 17 February 2020, 1 311 715
forfeitable PPC Shares were awarded to Mr Roland van Wijnen as a sign-on award, subject to the
vesting condition that he would remain in the continuous employment of PPC during the three year
vesting period, which commenced on his date of employment by the Group on 1 October 2019.
The vesting condition having been met, the PPC Shares will vest in terms of the Rules of the Forfeitable
Share Plan and the terms of the award, on 1 October 2022 and no clearance to trade in respect of the
vesting is required.
Sandton
30 September 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 30-09-2022 05:24:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
VESTING OF FORFEITABLE SHARES TO CHIEF EXECUTIVE OFFICER : FORFEITABLE SHARE PLAN 2011,
AS AMENDED
The following information is disclosed in respect of the vesting of PPC ordinary shares (“PPC Shares”)
to the Chief Executive Officer of the Company in terms of the Company’s Forfeitable Share Plan 2011,
as amended (“Forfeitable Share Plan”).
Name of Director: Roland Corstiaan van Wijnen
Designation: Chief Executive officer
Nature of transaction: Vesting of PPC Shares in terms of Forfeitable Share
Plan
Nature of trade: Off-market
Inception date: 1 October 2019
Vesting date: 1 October 2022
Number of PPC Shares: 1 311 715
Price per PPC Share on vesting date: R2.28
Total Value: R2 990 710.20
Nature of interest: Direct beneficial
Clearance obtained: Not applicable
In terms of the Forfeitable Share Plan and as announced on SENS on 17 February 2020, 1 311 715
forfeitable PPC Shares were awarded to Mr Roland van Wijnen as a sign-on award, subject to the
vesting condition that he would remain in the continuous employment of PPC during the three year
vesting period, which commenced on his date of employment by the Group on 1 October 2019.
The vesting condition having been met, the PPC Shares will vest in terms of the Rules of the Forfeitable
Share Plan and the terms of the award, on 1 October 2022 and no clearance to trade in respect of the
vesting is required.
Sandton
30 September 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 30-09-2022 05:24:00
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.
Disclosure of beneficial interests in securities
Disclosure of beneficial interests in securities
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
DISCLOSURE OF BENEFICIAL INTERESTS IN SECURITIES
In accordance with paragraph 3.83(b) of the Listings Requirements of the JSE Limited and section
122(3)(b) of the Companies Act 71 of 2008 (“the Act”), shareholders are advised of the following:
In terms of section 122(1)(b) of the Act shareholders are advised that the Company has received
formal notification that Sanlam Investment Management Proprietary Limited, acting on behalf of its
clients, has disposed of an interest in the ordinary shares of the Company, such that the total interest
held in PPC now amounts to 4.92% (previously 5.03%) of the total issued ordinary shares of PPC.
The board of PPC (“the Board”) accepts responsibility for the information contained in this
announcement as it pertains to PPC. To the best of the Board's knowledge and belief, the information
contained in this announcement as it pertains to PPC is true and nothing has been omitted which is
likely to affect the importance of such information.
Sandton
21 September 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 21-09-2022 03:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
DISCLOSURE OF BENEFICIAL INTERESTS IN SECURITIES
In accordance with paragraph 3.83(b) of the Listings Requirements of the JSE Limited and section
122(3)(b) of the Companies Act 71 of 2008 (“the Act”), shareholders are advised of the following:
In terms of section 122(1)(b) of the Act shareholders are advised that the Company has received
formal notification that Sanlam Investment Management Proprietary Limited, acting on behalf of its
clients, has disposed of an interest in the ordinary shares of the Company, such that the total interest
held in PPC now amounts to 4.92% (previously 5.03%) of the total issued ordinary shares of PPC.
The board of PPC (“the Board”) accepts responsibility for the information contained in this
announcement as it pertains to PPC. To the best of the Board's knowledge and belief, the information
contained in this announcement as it pertains to PPC is true and nothing has been omitted which is
likely to affect the importance of such information.
Sandton
21 September 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 21-09-2022 03:30:00
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.
Operating Update for the five months ended 31 August 2022
Operating Update for the five months ended 31 August 2022
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “company” or “group”)
OPERATING UPDATE FOR THE FIVE MONTHS ENDED 31 AUGUST 2022
GROUP PERFORMANCE
For the five months ended August 2022, PPC's group revenues, excluding
Zimbabwe, which is impacted by hyperinflation accounting, increased
by 9%, driven by robust demand in Rwanda. Group cement sales volumes
(including Zimbabwe) for the five months ended August 2022 were in-
line with the previous comparable period as subdued demand in South
Africa and the impact of a maintenance-related kiln shutdown in
Zimbabwe were offset by robust demand growth in Rwanda. In addition,
cash generation remains positive and the group reduced net debt from
31 March 2022 levels.
SOUTH AFRICA & BOTSWANA CEMENT
Cement sales volumes in South Africa and Botswana decreased by 1%
period-on-period for the five months ended August 2022. Cement sales
volumes in the inland region decreased after experiencing a slow start
to FY23, offsetting the high single-digit demand growth in the coastal
areas. Inland cement sales volumes were negatively impacted by above-
average seasonal rainfall and sluggish retail demand at the beginning
of FY23, which was partially offset by increased sales to the
industrial and construction sectors. Cement sales volumes in the
coastal region increased due to a decline in imports in the Western
Cape, a recovery in industrial construction activity and the
resumption of postponed government projects. The average selling price
increased by 5% during the period under review. This was insufficient
to fully offset the impact of input cost inflation as the cash cost
of sales increased by low double-digits in percentage terms. PPC will
continue its efforts to counter input price inflation through price
adjustments, operational efficiencies and improved industrial
performance. Coming off a relatively high EBITDA base in the first
half of FY22, PPC continues to prioritise cash generation by
optimising net working capital and adhering to stringent capital
allocation. This contributed to South Africa and Botswana's gross debt
decreasing from R1.2 billion on 31 March 2022 to R1.0 billion on 31
August 2022.
ZIMBABWE
The cement market in Zimbabwe continued to show robust high single-
digit growth as a result of both residential construction and
government-funded infrastructure projects. PPC Zimbabwe implemented
planned maintenance at the beginning of FY23 and recorded a 7% decline
in cement sales volumes period-on-period.
However, the resumption of clinker manufacturing by PPC Zimbabwe at
the end of May 2022 enabled improved sales volumes in the second
quarter of FY23.
PPC Zimbabwe implemented US$ price increases of 5% in March 2022, 2%
in April 2022 and a further 5% increase in August 2022.
PPC noted increased availability of foreign currency in the Zimbabwean
economy, with more than 70% of cement sales during the period under
review occurring in foreign currency.
PPC received a US$4.4 million dividend in June 2022 and anticipates
an additional dividend to be declared upon the publication of PPC
Zimbabwe's interim results in November 2022.
RWANDA
CIMERWA continues to see strong demand for cement in all its markets,
with cement sales volumes increasing by 16% period-on-period for the
five months ended August 2022. CIMERWA’s domestic cement sales
benefited from increased demand from government-sponsored
infrastructure projects and a recovery in general building activity.
In addition, cement exports benefited from sustained demand in eastern
Democratic Republic of Congo and the expansion of CIMERWA's route to
market initiatives. CIMERWA's efforts to enhance industrial
performance and reliability are beginning to bear fruit with the
benefits reflected in the increase in cement sales volumes.
OUTLOOK
Given the current economic climate, the group will continue to enhance
operational efficiencies to mitigate the impact of rising input cost
inflation. Without a significant increase in infrastructure
investments, cement demand in South Africa is anticipated to remain
subdued. PPC South Africa is well positioned to benefit from an
increase in cement demand with additional capacity available to
capture an upswing in demand without additional capex investment
required. PPC Zimbabwe anticipates a recovery for the balance of the
financial year and the outlook for CIMERWA remains positive.
PPC is participating in the RMB Morgan Stanley Big Five and Off Piste
Investor Conference in Cape Town on 14 September 2022 and the
presentation to be given at this conference is available on the
company’s website
www.ppc.africa/investors-relations/reports/?t=presentations-allocate
Sandton
14 September 2022
Sponsor:
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 14-09-2022 07:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “company” or “group”)
OPERATING UPDATE FOR THE FIVE MONTHS ENDED 31 AUGUST 2022
GROUP PERFORMANCE
For the five months ended August 2022, PPC's group revenues, excluding
Zimbabwe, which is impacted by hyperinflation accounting, increased
by 9%, driven by robust demand in Rwanda. Group cement sales volumes
(including Zimbabwe) for the five months ended August 2022 were in-
line with the previous comparable period as subdued demand in South
Africa and the impact of a maintenance-related kiln shutdown in
Zimbabwe were offset by robust demand growth in Rwanda. In addition,
cash generation remains positive and the group reduced net debt from
31 March 2022 levels.
SOUTH AFRICA & BOTSWANA CEMENT
Cement sales volumes in South Africa and Botswana decreased by 1%
period-on-period for the five months ended August 2022. Cement sales
volumes in the inland region decreased after experiencing a slow start
to FY23, offsetting the high single-digit demand growth in the coastal
areas. Inland cement sales volumes were negatively impacted by above-
average seasonal rainfall and sluggish retail demand at the beginning
of FY23, which was partially offset by increased sales to the
industrial and construction sectors. Cement sales volumes in the
coastal region increased due to a decline in imports in the Western
Cape, a recovery in industrial construction activity and the
resumption of postponed government projects. The average selling price
increased by 5% during the period under review. This was insufficient
to fully offset the impact of input cost inflation as the cash cost
of sales increased by low double-digits in percentage terms. PPC will
continue its efforts to counter input price inflation through price
adjustments, operational efficiencies and improved industrial
performance. Coming off a relatively high EBITDA base in the first
half of FY22, PPC continues to prioritise cash generation by
optimising net working capital and adhering to stringent capital
allocation. This contributed to South Africa and Botswana's gross debt
decreasing from R1.2 billion on 31 March 2022 to R1.0 billion on 31
August 2022.
ZIMBABWE
The cement market in Zimbabwe continued to show robust high single-
digit growth as a result of both residential construction and
government-funded infrastructure projects. PPC Zimbabwe implemented
planned maintenance at the beginning of FY23 and recorded a 7% decline
in cement sales volumes period-on-period.
However, the resumption of clinker manufacturing by PPC Zimbabwe at
the end of May 2022 enabled improved sales volumes in the second
quarter of FY23.
PPC Zimbabwe implemented US$ price increases of 5% in March 2022, 2%
in April 2022 and a further 5% increase in August 2022.
PPC noted increased availability of foreign currency in the Zimbabwean
economy, with more than 70% of cement sales during the period under
review occurring in foreign currency.
PPC received a US$4.4 million dividend in June 2022 and anticipates
an additional dividend to be declared upon the publication of PPC
Zimbabwe's interim results in November 2022.
RWANDA
CIMERWA continues to see strong demand for cement in all its markets,
with cement sales volumes increasing by 16% period-on-period for the
five months ended August 2022. CIMERWA’s domestic cement sales
benefited from increased demand from government-sponsored
infrastructure projects and a recovery in general building activity.
In addition, cement exports benefited from sustained demand in eastern
Democratic Republic of Congo and the expansion of CIMERWA's route to
market initiatives. CIMERWA's efforts to enhance industrial
performance and reliability are beginning to bear fruit with the
benefits reflected in the increase in cement sales volumes.
OUTLOOK
Given the current economic climate, the group will continue to enhance
operational efficiencies to mitigate the impact of rising input cost
inflation. Without a significant increase in infrastructure
investments, cement demand in South Africa is anticipated to remain
subdued. PPC South Africa is well positioned to benefit from an
increase in cement demand with additional capacity available to
capture an upswing in demand without additional capex investment
required. PPC Zimbabwe anticipates a recovery for the balance of the
financial year and the outlook for CIMERWA remains positive.
PPC is participating in the RMB Morgan Stanley Big Five and Off Piste
Investor Conference in Cape Town on 14 September 2022 and the
presentation to be given at this conference is available on the
company’s website
www.ppc.africa/investors-relations/reports/?t=presentations-allocate
Sandton
14 September 2022
Sponsor:
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 14-09-2022 07:30:00
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.
Results of Annual General Meeting and Change to the Board of Directors
Results of Annual General Meeting and Change to the Board of Directors
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Results of Annual General Meeting (“AGM”) and change to the Board of Directors
Shareholders of PPC (“Shareholders”) are hereby advised that the ordinary and special
resolutions contained in the Notice of the AGM dated 27 July 2022 that were tabled at the
Company’s AGM held on Friday, 9 September 2022, were passed by the requisite majority of
votes cast by Shareholders, as reported below.
Special Resolution 6 – General Authority to Issue Shares for Cash was withdrawn at the
commencement of the AGM and therefore not tabled at the AGM, as the board of directors
of PPC has resolved that any issues of shares for cash will be put to shareholders to vote
thereon.
The total number of PPC ordinary shares (“Shares”) in issue that could have voted at the AGM
was 1,553,764,624 and the total number of Shares present at the AGM in person or by proxy
was 1,041,149,644, representing 67.01% of the total Shares that could have voted.
Resolutions proposed Number of Shares Shares Percentage Percentage Percentage
voted voted* For** Against** Abstained*
Ordinary Resolution 1.1 – 1 040 466 892 66.96% 98.15% 1.85% 0.04%
Election of Mr Bjarne Hansen
Ordinary Resolution 1.2 – 1 038 492 575 66.84% 97.41% 2.59% 0.17%
Election of Mr Daniel Smith
Ordinary Resolution 2.1 – Re- 1 038 501 102 66.84% 95.84% 4.16% 0.17%
election of Ms Noluvuyo
Mkhondo
Ordinary Resolution 2.2 – Re- 1 040 464 884 66.96% 99.62% 0.38% 0.04%
election of Mr Jabulani
Moleketi
Ordinary Resolution 3.1 – 1 039 23 0430 66.88% 99.76% 0.24% 0.12%
Appointment to audit
committee – Ms Nonkululeko
Gobodo
Ordinary Resolution 3.2 – 1 039 287 530 66.89% 95.85% 4.15% 0.12%
Appointment to audit
committee – Ms Noluvuyo
Mkhondo
Ordinary Resolution 3.3 – 1 039 301 038 66.89% 99.69% 0.31% 0.12%
Appointment to audit
committee – Mr Mark Richard
Thompson
Ordinary Resolution 4 – 1 040 466 892 66.96% 99.85% 0.15% 0.04%
Appointment of external
Auditor
PricewaterhouseCoopers (PwC)
Ordinary Resolution 5.1 – Non- 1 038 269 576 66.82% 82.37% 17.63% 0.19%
binding advisory vote –
Remuneration Policy
Ordinary Resolution 5.2 – Non- 1 037 483 548 66.77% 83.76% 16.24% 0.24%
binding advisory vote –
Remuneration Implementation
Report
Ordinary Resolution 6 – General Withdrawn
authority to issue shares for
cash
Ordinary Resolution 7 – 1 037 986 082 66.80% 99.96% 0.04% 0.20%
Authority to implement
resolutions
Special Resolutions 1.1 – 1 038 501 891 66.84% 99.32% 0.68% 0.17%
Financial Assistance – Section
44
1 038 501 891 66.84% 96.84% 3.16% 0.17%
Special Resolutions 1.2 –
Financial Assistance – Section
45
Special Resolution 2.1 – 1 039 097 419 66.88% 97.68% 2.32% 0.13%
Remuneration – Board
chairman
Special Resolution 2.2 – 1 039 096 384 66.88% 99.74% 0.26% 0.13%
Remuneration – Non-executive
director
1 038 281 856 66.82% 99.94% 0.06% 0.18%
Special Resolution 2.3 – Audit
and risk committee chairman
1 038 274 456 66.82% 99.94% 0.06% 0.19%
Special Resolution 2.4 – Audit
and risk committee – Member
1 038 296 056 66.82% 99.91% 0.09% 0.18%
Special Resolution 2.5 – Social
and ethics committee –
Chairman
1 038 288 656 66.82% 99.92% 0.08% 0.18%
Special Resolution 2.6 – Social
and ethics committee –
Member
1 038 288 656 66.82% 99.91% 0.09% 0.18%
Special Resolution 2.7 –
Rewards and talent committee
– Chairman
1 040 466 892 66.96% 99.70% 0.30% 0.04%
Special Resolution 2.8 –
Rewards and talent committee
– Member
1 038 281 056 66.82% 99.91% 0.09% 0.18%
Special Resolution 2.9 –
Strategy and investment
committee – Chairman
1 040 466 892 66.96% 99.70% 0.30% 0.04%
Special Resolution 2.10 –
Strategy and investment
committee – Member
1 038 281 056 66.82% 97.35% 2.65% 0.18%
Special Resolution 2.11 –
Special meetings – Chairman
1 038 281 056 66.82% 97.52% 2.48% 0.18%
Special Resolution 2.12 –
Special meetings – Member
1 038 081 925 66.81% 99.95% 0.05% 0.20%
Special Resolution 3 – General
authority to repurchase shares
* As a percentage to the total number of PPC ordinary shares in issue, being 1,553,764,624
** As a percentage to the total number of shares voted at the AGM, being 1,041,149,644,
CHANGE TO THE BOARD OF DIRECTORS (“BOARD”)
As announced on SENS on 27 July 2022 Mr Anthony Ball has not made himself available for
re-election to the Board at the AGM and will consequently retire as an independent non-
executive director of the Company in terms of its Memorandum of Incorporation, with effect
from 9 September 2022.
The Board is grateful to Mr Ball for his valuable contribution and service to the Company and
wishes him well in all his future endeavors.
Sandton
9 September 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 09-09-2022 03:47:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Results of Annual General Meeting (“AGM”) and change to the Board of Directors
Shareholders of PPC (“Shareholders”) are hereby advised that the ordinary and special
resolutions contained in the Notice of the AGM dated 27 July 2022 that were tabled at the
Company’s AGM held on Friday, 9 September 2022, were passed by the requisite majority of
votes cast by Shareholders, as reported below.
Special Resolution 6 – General Authority to Issue Shares for Cash was withdrawn at the
commencement of the AGM and therefore not tabled at the AGM, as the board of directors
of PPC has resolved that any issues of shares for cash will be put to shareholders to vote
thereon.
The total number of PPC ordinary shares (“Shares”) in issue that could have voted at the AGM
was 1,553,764,624 and the total number of Shares present at the AGM in person or by proxy
was 1,041,149,644, representing 67.01% of the total Shares that could have voted.
Resolutions proposed Number of Shares Shares Percentage Percentage Percentage
voted voted* For** Against** Abstained*
Ordinary Resolution 1.1 – 1 040 466 892 66.96% 98.15% 1.85% 0.04%
Election of Mr Bjarne Hansen
Ordinary Resolution 1.2 – 1 038 492 575 66.84% 97.41% 2.59% 0.17%
Election of Mr Daniel Smith
Ordinary Resolution 2.1 – Re- 1 038 501 102 66.84% 95.84% 4.16% 0.17%
election of Ms Noluvuyo
Mkhondo
Ordinary Resolution 2.2 – Re- 1 040 464 884 66.96% 99.62% 0.38% 0.04%
election of Mr Jabulani
Moleketi
Ordinary Resolution 3.1 – 1 039 23 0430 66.88% 99.76% 0.24% 0.12%
Appointment to audit
committee – Ms Nonkululeko
Gobodo
Ordinary Resolution 3.2 – 1 039 287 530 66.89% 95.85% 4.15% 0.12%
Appointment to audit
committee – Ms Noluvuyo
Mkhondo
Ordinary Resolution 3.3 – 1 039 301 038 66.89% 99.69% 0.31% 0.12%
Appointment to audit
committee – Mr Mark Richard
Thompson
Ordinary Resolution 4 – 1 040 466 892 66.96% 99.85% 0.15% 0.04%
Appointment of external
Auditor
PricewaterhouseCoopers (PwC)
Ordinary Resolution 5.1 – Non- 1 038 269 576 66.82% 82.37% 17.63% 0.19%
binding advisory vote –
Remuneration Policy
Ordinary Resolution 5.2 – Non- 1 037 483 548 66.77% 83.76% 16.24% 0.24%
binding advisory vote –
Remuneration Implementation
Report
Ordinary Resolution 6 – General Withdrawn
authority to issue shares for
cash
Ordinary Resolution 7 – 1 037 986 082 66.80% 99.96% 0.04% 0.20%
Authority to implement
resolutions
Special Resolutions 1.1 – 1 038 501 891 66.84% 99.32% 0.68% 0.17%
Financial Assistance – Section
44
1 038 501 891 66.84% 96.84% 3.16% 0.17%
Special Resolutions 1.2 –
Financial Assistance – Section
45
Special Resolution 2.1 – 1 039 097 419 66.88% 97.68% 2.32% 0.13%
Remuneration – Board
chairman
Special Resolution 2.2 – 1 039 096 384 66.88% 99.74% 0.26% 0.13%
Remuneration – Non-executive
director
1 038 281 856 66.82% 99.94% 0.06% 0.18%
Special Resolution 2.3 – Audit
and risk committee chairman
1 038 274 456 66.82% 99.94% 0.06% 0.19%
Special Resolution 2.4 – Audit
and risk committee – Member
1 038 296 056 66.82% 99.91% 0.09% 0.18%
Special Resolution 2.5 – Social
and ethics committee –
Chairman
1 038 288 656 66.82% 99.92% 0.08% 0.18%
Special Resolution 2.6 – Social
and ethics committee –
Member
1 038 288 656 66.82% 99.91% 0.09% 0.18%
Special Resolution 2.7 –
Rewards and talent committee
– Chairman
1 040 466 892 66.96% 99.70% 0.30% 0.04%
Special Resolution 2.8 –
Rewards and talent committee
– Member
1 038 281 056 66.82% 99.91% 0.09% 0.18%
Special Resolution 2.9 –
Strategy and investment
committee – Chairman
1 040 466 892 66.96% 99.70% 0.30% 0.04%
Special Resolution 2.10 –
Strategy and investment
committee – Member
1 038 281 056 66.82% 97.35% 2.65% 0.18%
Special Resolution 2.11 –
Special meetings – Chairman
1 038 281 056 66.82% 97.52% 2.48% 0.18%
Special Resolution 2.12 –
Special meetings – Member
1 038 081 925 66.81% 99.95% 0.05% 0.20%
Special Resolution 3 – General
authority to repurchase shares
* As a percentage to the total number of PPC ordinary shares in issue, being 1,553,764,624
** As a percentage to the total number of shares voted at the AGM, being 1,041,149,644,
CHANGE TO THE BOARD OF DIRECTORS (“BOARD”)
As announced on SENS on 27 July 2022 Mr Anthony Ball has not made himself available for
re-election to the Board at the AGM and will consequently retire as an independent non-
executive director of the Company in terms of its Memorandum of Incorporation, with effect
from 9 September 2022.
The Board is grateful to Mr Ball for his valuable contribution and service to the Company and
wishes him well in all his future endeavors.
Sandton
9 September 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 09-09-2022 03:47:00
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.
2022/07/27
Notice of Annual General Meeting, Integrated Annual Report and B-BBEE Certificate and Change to the Board
View ArticleNotice of Annual General Meeting, Integrated Annual Report and B-BBEE Certificate and Change to the Board
Notice of Annual General Meeting, Integrated Annual Report and B-BBEE Certificate and Change to the Board
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
NOTICE OF ANNUAL GENERAL MEETING AND PUBLICATION OF INTEGRATED ANNUAL REPORT AND
B-BBEE COMPLIANCE REPORT
CHANGE TO THE BOARD OF DIRECTORS
Shareholders are advised that the Company’s integrated annual report (“IAR”) was published and that
the Company’s notice of annual general meeting (“AGM”) was distributed to shareholders together
with a copy of its Audited Consolidated Annual Financial Statements for the year ended 31 March
2022 today, 27 July 2022.
Electronic copies of the IAR will be available on the Company´s website, at
https://www.ppc.africa/investors-relations/reports/?t=year-end; and
the notice of AGM will be available on the Company’s website, at
https://www.ppc.africa/investors-relations/reports/?t=agm-notices
as from today, 27 July 2022. Copies of the IAR and AGM notice may also be requested from the
company secretary at kevin.ross@ppc.co.za.
NOTICE OF AGM
Notice is hereby given that the 130th AGM of the shareholders of the Company will be held entirely
by electronic communication, at 12:00 on Friday, 9 September 2022, to consider and, if deemed fit,
to pass with or without modification, all of the ordinary and special resolutions set out in the notice
of AGM.
The salient dates and times applicable to the 130th AGM, are set out below:
2022
Notice to attend PPC’s AGM on Wednesday, 27 July
Record date to receive the notice of AGM Friday, 22 July
Last day to trade to be recorded in the register to vote at the AGM Tuesday, 30 August
Record date to be eligible to vote at the AGM (voting record date) Friday, 2 September
Last day to lodge forms of proxy for the AGM by 12:00 Wednesday, 7 September
AGM to be held at 12:00 Friday, 9 September
Results of AGM released via stock exchange news service (SENS) on Friday, 9 September
1. The above dates and times are subject to amendment. Any such amendment will be released via
SENS.
2. All times given are local times in South Africa.
3. Any forms of proxy not delivered to the meeting secretaries by 12:00 on Wednesday, 7 September
2022 may be emailed to proxy@computershare.co.za and will be handed to the chair of the AGM
immediately before the appointed proxy exercises any of the shareholder’s rights at the AGM.
B-BBEE ANNUAL COMPLIANCE REPORT
In accordance with paragraph 16.21 (g) and Appendix 1 to Section 11 of the JSE Limited Listings
Requirements, notice is hereby given that the Company´s annual compliance report in terms of
section 13G(2) of the B-BBEE Act, as submitted to the Broad Based Black Economic Empowerment
Commission, is available on PPC’s website at http://www.ppc.africa
The Company has improved its B-BBEE rating to Level 2.
CHANGE TO THE BOARD OF DIRECTORS (“BOARD”)
In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited, the Board wishes
to inform shareholders of the following change to the Board.
Mr Anthony Ball advised the Board that he would not make himself available for re-election to the
Board at the AGM and will consequently retire as an independent non-executive director of the
Company in terms of its Memorandum of Incorporation, with effect from 9 September 2022. Mr Ball
has served as an independent non-executive director of the Company for the past four years and has
played an important role in helping the Company to achieve certain key milestones regarding the
restructuring and refinancing of the Group.
The Board is grateful to Mr Ball for his valuable contribution and service to the Company and wishes
him well in all his future endeavors.
Sandton
27 July 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 27-07-2022 07:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
NOTICE OF ANNUAL GENERAL MEETING AND PUBLICATION OF INTEGRATED ANNUAL REPORT AND
B-BBEE COMPLIANCE REPORT
CHANGE TO THE BOARD OF DIRECTORS
Shareholders are advised that the Company’s integrated annual report (“IAR”) was published and that
the Company’s notice of annual general meeting (“AGM”) was distributed to shareholders together
with a copy of its Audited Consolidated Annual Financial Statements for the year ended 31 March
2022 today, 27 July 2022.
Electronic copies of the IAR will be available on the Company´s website, at
https://www.ppc.africa/investors-relations/reports/?t=year-end; and
the notice of AGM will be available on the Company’s website, at
https://www.ppc.africa/investors-relations/reports/?t=agm-notices
as from today, 27 July 2022. Copies of the IAR and AGM notice may also be requested from the
company secretary at kevin.ross@ppc.co.za.
NOTICE OF AGM
Notice is hereby given that the 130th AGM of the shareholders of the Company will be held entirely
by electronic communication, at 12:00 on Friday, 9 September 2022, to consider and, if deemed fit,
to pass with or without modification, all of the ordinary and special resolutions set out in the notice
of AGM.
The salient dates and times applicable to the 130th AGM, are set out below:
2022
Notice to attend PPC’s AGM on Wednesday, 27 July
Record date to receive the notice of AGM Friday, 22 July
Last day to trade to be recorded in the register to vote at the AGM Tuesday, 30 August
Record date to be eligible to vote at the AGM (voting record date) Friday, 2 September
Last day to lodge forms of proxy for the AGM by 12:00 Wednesday, 7 September
AGM to be held at 12:00 Friday, 9 September
Results of AGM released via stock exchange news service (SENS) on Friday, 9 September
1. The above dates and times are subject to amendment. Any such amendment will be released via
SENS.
2. All times given are local times in South Africa.
3. Any forms of proxy not delivered to the meeting secretaries by 12:00 on Wednesday, 7 September
2022 may be emailed to proxy@computershare.co.za and will be handed to the chair of the AGM
immediately before the appointed proxy exercises any of the shareholder’s rights at the AGM.
B-BBEE ANNUAL COMPLIANCE REPORT
In accordance with paragraph 16.21 (g) and Appendix 1 to Section 11 of the JSE Limited Listings
Requirements, notice is hereby given that the Company´s annual compliance report in terms of
section 13G(2) of the B-BBEE Act, as submitted to the Broad Based Black Economic Empowerment
Commission, is available on PPC’s website at http://www.ppc.africa
The Company has improved its B-BBEE rating to Level 2.
CHANGE TO THE BOARD OF DIRECTORS (“BOARD”)
In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited, the Board wishes
to inform shareholders of the following change to the Board.
Mr Anthony Ball advised the Board that he would not make himself available for re-election to the
Board at the AGM and will consequently retire as an independent non-executive director of the
Company in terms of its Memorandum of Incorporation, with effect from 9 September 2022. Mr Ball
has served as an independent non-executive director of the Company for the past four years and has
played an important role in helping the Company to achieve certain key milestones regarding the
restructuring and refinancing of the Group.
The Board is grateful to Mr Ball for his valuable contribution and service to the Company and wishes
him well in all his future endeavors.
Sandton
27 July 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 27-07-2022 07:30:00
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.
Dealing in Securities by an Associate of Directors
Dealing in Securities by an Associate of Directors
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DEALING IN SECURITIES BY AN ASSOCIATE OF DIRECTORS
In compliance with the JSE Limited Listings Requirements, the following
information is disclosed:
Director : Mr AC Ball
Title : Non-Executive Director
Director : Ms N Mkhondo
Title : Non-Executive Director
Company : PPC Limited
Name of Associate : Value Capital Partners (Pty) Ltd*
Date of transaction : 5 July 2022
Number of securities : 1 392 620
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R2.7700
Value of transaction : R3 857 557.40
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
Date of transaction : 6 July 2022
Number of securities : 1 148 367
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R2.7991
Value of transaction : R3 214 394.07
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
Date of transaction : 7 July 2022
Number of securities : 693 222
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R2.9580
Value of transaction : R2 050 550.68
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
* Mr AC Ball and Ms N Mkhondo have an indirect beneficial interest in Value
Capital Partners (Pty) Ltd (“VCP”), which is the registered investment
manager to Value Capital Partners H4 QI Hedge Fund and various other funds.
Sandton
7 July 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 07-07-2022 04:36:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DEALING IN SECURITIES BY AN ASSOCIATE OF DIRECTORS
In compliance with the JSE Limited Listings Requirements, the following
information is disclosed:
Director : Mr AC Ball
Title : Non-Executive Director
Director : Ms N Mkhondo
Title : Non-Executive Director
Company : PPC Limited
Name of Associate : Value Capital Partners (Pty) Ltd*
Date of transaction : 5 July 2022
Number of securities : 1 392 620
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R2.7700
Value of transaction : R3 857 557.40
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
Date of transaction : 6 July 2022
Number of securities : 1 148 367
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R2.7991
Value of transaction : R3 214 394.07
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
Date of transaction : 7 July 2022
Number of securities : 693 222
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R2.9580
Value of transaction : R2 050 550.68
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
* Mr AC Ball and Ms N Mkhondo have an indirect beneficial interest in Value
Capital Partners (Pty) Ltd (“VCP”), which is the registered investment
manager to Value Capital Partners H4 QI Hedge Fund and various other funds.
Sandton
7 July 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 07-07-2022 04:36:00
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.
Change to the Board of Directors of PPC
Change to the Board of Directors of PPC
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”)
CHANGES TO THE BOARD OF DIRECTORS OF PPC (“BOARD”)
In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited, the Board wishes
to inform shareholders of the following change to the Board.
Appointment of a Non-executive Director to the Board
The Board is pleased to announce the appointment of Daniel Smith as a non-executive director and
member of the strategy and investment committee of PPC with effect 01 October 2022.
Daniel is a South African Chartered Accountant by profession. He has more than 20 years of
investment banking and advisory experience in South Africa and the United Kingdom. He is a former
senior banker and Head of Corporate Finance for Standard Bank in South Africa. Prior to that he
worked at financial institutions groups at Nomura International plc, PwC Corporate Finance in London
and SG Hambros South Africa. He has originated and led complex transactions across mergers &
acquisitions, equity capital markets, restructurings, private equity and BEE in sub-Saharan Africa, the
United Kingdom, Europe and Asia. Daniel has industry experience in the construction, property,
industrials, financial services, consumer and hospitality sectors. Daniel is an investment director at
Value Capital Partners Proprietary Limited.
The Board welcomes Daniel and looks forward to his contribution.
Sandton
06 July 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 06-07-2022 01:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”)
CHANGES TO THE BOARD OF DIRECTORS OF PPC (“BOARD”)
In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited, the Board wishes
to inform shareholders of the following change to the Board.
Appointment of a Non-executive Director to the Board
The Board is pleased to announce the appointment of Daniel Smith as a non-executive director and
member of the strategy and investment committee of PPC with effect 01 October 2022.
Daniel is a South African Chartered Accountant by profession. He has more than 20 years of
investment banking and advisory experience in South Africa and the United Kingdom. He is a former
senior banker and Head of Corporate Finance for Standard Bank in South Africa. Prior to that he
worked at financial institutions groups at Nomura International plc, PwC Corporate Finance in London
and SG Hambros South Africa. He has originated and led complex transactions across mergers &
acquisitions, equity capital markets, restructurings, private equity and BEE in sub-Saharan Africa, the
United Kingdom, Europe and Asia. Daniel has industry experience in the construction, property,
industrials, financial services, consumer and hospitality sectors. Daniel is an investment director at
Value Capital Partners Proprietary Limited.
The Board welcomes Daniel and looks forward to his contribution.
Sandton
06 July 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 06-07-2022 01:00:00
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.
Dealing in Securities by an Associate of Directors
Dealing in Securities by an Associate of Directors
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DEALING IN SECURITIES BY AN ASSOCIATE OF DIRECTORS
In compliance with the JSE Limited Listings Requirements, the following information is disclosed:
Director : Mr AC Ball
Title : Non-Executive Director
Director : Ms N Mkhondo
Title : Non-Executive Director
Company : PPC Limited
Name of Associate : Value Capital Partners (Pty) Ltd*
Date of transaction : 1 July 2022
Number of securities : 2 684 664
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R2.7559
Value of transaction : R7 398 665.52
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
Date of transaction : 4 July 2022
Number of securities : 558 785
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R2.7985
Value of transaction : R1 563 759.82
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
* Mr AC Ball and Ms N Mkhondo have an indirect beneficial interest in Value Capital Partners (Pty) Ltd
(“VCP”), which is the registered investment manager to Value Capital Partners H4 QI Hedge Fund and
various other funds.
Sandton
5 July 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 05-07-2022 01:15:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DEALING IN SECURITIES BY AN ASSOCIATE OF DIRECTORS
In compliance with the JSE Limited Listings Requirements, the following information is disclosed:
Director : Mr AC Ball
Title : Non-Executive Director
Director : Ms N Mkhondo
Title : Non-Executive Director
Company : PPC Limited
Name of Associate : Value Capital Partners (Pty) Ltd*
Date of transaction : 1 July 2022
Number of securities : 2 684 664
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R2.7559
Value of transaction : R7 398 665.52
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
Date of transaction : 4 July 2022
Number of securities : 558 785
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R2.7985
Value of transaction : R1 563 759.82
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
* Mr AC Ball and Ms N Mkhondo have an indirect beneficial interest in Value Capital Partners (Pty) Ltd
(“VCP”), which is the registered investment manager to Value Capital Partners H4 QI Hedge Fund and
various other funds.
Sandton
5 July 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 05-07-2022 01:15:00
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.
2022/07/04
Audited Consolidated Financial Statements for the year ended 31 March 2022 No Change Statement
View ArticleAudited Consolidated Financial Statements for the year ended 31 March 2022 No Change Statement
Audited Consolidated Financial Statements for the year ended 31 March 2022 No Change Statement
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Audited Consolidated Financial Statements for the year ended 31 March 2022
No Change Statement
Shareholders are advised that the Company’s audited consolidated financial statements and its own
financial statements for the year ended 31 March 2022 (2022 AFS), together with the unmodified audit
report of the independent auditor, Deloitte & Touche, have been published and will be available on
the PPC’s website www.ppc.africa from today, 4 July 2022.
No Change Statement
Neither the 2022 AFS nor the audit report thereon contains any modifications to the reviewed
condensed consolidated financial statements for the year ended 31 March 2022, which were
published on SENS on 27 June 2022.
The Company’s notice of annual general meeting will be distributed to shareholders together with a
copy of the 2022 AFS and the Company’s compliance report in terms of section 13G(2) of the Broad-
Based Black Economic Empowerment Act 53 of 2003 read with the Broad-Based Black Economic
Empowerment Amendment Act 46 of 2013 and its 2022 integrated annual report will be published on
or about Wednesday, 27 July 2022.
Sandton
4 July 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 04-07-2022 07:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Audited Consolidated Financial Statements for the year ended 31 March 2022
No Change Statement
Shareholders are advised that the Company’s audited consolidated financial statements and its own
financial statements for the year ended 31 March 2022 (2022 AFS), together with the unmodified audit
report of the independent auditor, Deloitte & Touche, have been published and will be available on
the PPC’s website www.ppc.africa from today, 4 July 2022.
No Change Statement
Neither the 2022 AFS nor the audit report thereon contains any modifications to the reviewed
condensed consolidated financial statements for the year ended 31 March 2022, which were
published on SENS on 27 June 2022.
The Company’s notice of annual general meeting will be distributed to shareholders together with a
copy of the 2022 AFS and the Company’s compliance report in terms of section 13G(2) of the Broad-
Based Black Economic Empowerment Act 53 of 2003 read with the Broad-Based Black Economic
Empowerment Amendment Act 46 of 2013 and its 2022 integrated annual report will be published on
or about Wednesday, 27 July 2022.
Sandton
4 July 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 04-07-2022 07:30:00
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.
2022/06/27
Condensed Consolidated Financial Statements for the year ended 31 March 2022
View ArticleCondensed Consolidated Financial Statements for the year ended 31 March 2022
Condensed Consolidated Financial Statements for the year ended 31 March 2022
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(PPC or the company or the group)
Short-form announcement
Condensed consolidated financial statements for the year ended 31 March 2022
Salient features (continuing operations)
- Group revenue R9,9 billion (March 2021: R8,9 billion)
- Group EBITDA R1,5 Billion (March 2021: R1,6 billion)
- Earnings/(loss) per share (5) cents (March 2021: 65 cents)
- Headline earnings/(loss) per share (3) cents (March 2021: 3 cents)
- Cash generated from operations R1,5 billion (March 2021: R1,4 billion)
- The group did not declare a dividend in the current or previous period
Roland van Wijnen, CEO, said:
"Our resilient cash generation demonstrates our focus on one of the most important measures of financial
performance. These results were further supported by our efforts to drive efficiencies which helped mitigate
inflationary pressures. Ultimately, Team PPC was able to reduce net debt by R1,2 billion and finalise the work
to achieve a solid financial position. Furthermore, we have set our decarbonisation strategy in motion and are
committed to tackling climate change head on. I extend my gratitude to all our customers for their continued
support and to my colleagues who have worked diligently to ensure PPC continues to sustain its purpose of
empowering people to experience a better quality of life."
REVIEW OF OPERATIONS
The group, in accordance with IFRS 5 - Non-current assets held for sale, continues to account for PPC Barnet as a
discontinued operation. Accordingly, the assets, liabilities and profit or loss are reported separately in the
financial statements for the year ended 31 March 2022. For the year ended 31 March 2021, PPC Barnet, PPC Lime and
Botswana Aggregates were all accounted for as discontinued operations. During the year under review, PPC Lime and
Botswana Aggregates were sold with effect from 30 September 2021 and 16 September 2021 respectively. Regarding PPC
Barnet, binding long-form agreements for the restructure of the senior lender debt were signed on 19 April 2022 and
all the conditions precedent were met on 29 April 2022, from which date PPC will cease to consolidate PPC Barnet.
GROUP PERFORMANCE
Group revenue for the 12 months ended 31 March 2022 increased by 11% to R9 882 million (March 2021: R8 938 million).
Excluding Zimbabwe, group revenue increased by 5%. Revenue in PPC Zimbabwe increased by 34% off the back of a 28%
increase in volumes.
Total costs, being cost of sales together with administration and other operating expenditure, increased by 19% to
R9 360 million (March 2021: R7 887 million). The increase in total costs is significantly affected by an increase in
PPC Zimbabwe's costs of 85%. Other than continuing hyperinflation and the 42% depreciation of the Zimbabwean dollar
(ZWL dollar) against the South African rand (ZAR), the most significant line item was an increase in PPC Zimbabwe's
depreciation expense to R386 million (March 2021: R24 million) due to the application of the effective rate method of
hyperinflating depreciation in the current year. Costs, excluding depreciation and PPC Zimbabwe, increased by 7% with
efficiency gains offsetting input cost inflation.
Profit before tax from continuing operations decreased from R1 765 million to R186 million, due to the items set out
below:
- PPC Zimbabwe incurred a loss before tax of R67 million (March 2021: R263 million profit)
- Excluding PPC Zimbabwe's portion, fair value adjustments and foreign exchange movements resulted in a gain of
R18 million (March 2021: R148 million loss)
- Impairments of R38 million (March 2021: R1 317 million reversal)
- An IFRS - Share-based payment charge of R36 million (March 2021: R21 million).
Excluding the above in both the current and the prior year, operating profit from continuing operations would have
decreased by R43 million or 11%.
Finance costs decreased by 15% to R240 million (March 2021: R283 million) due to lower average borrowings. Finance
costs in South Africa decreased by 4% to R155 million (March 2021: R161 million), while finance costs in the
international operations decreased by 30% to R85 million (March 2021: R122 million).
The group taxation charge for the year amounts to R207 million relative to a charge of R742 million in March 2021.
Discontinued operations, which include PPC Barnet for the full year and PPC Lime and Botswana Aggregates until
30 September and 16 September 2021 respectively, generated a profit of R158 million (March 2021: R1 141 million loss)
for the year. The most significant change year-on-year was an impairment of R761 million in the prior year compared to
a reversal of R215 million in the current year for PPC Barnet at the consolidated level to reflect the economic
position post the restructuring agreements entered into on 31 March 2021.
Earnings per share (EPS) for the period from continuing operations decreased to a loss of 5 cents (March 2021:
65 cents) while headline earnings per share from continuing operations (HEPS) reduced to a loss of 3 cents (March 2021:
3 cents profit).
Group earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 7% to R1 493 million (March
2021: R1 598 million) with an EBITDA margin of 15,1% (March 2021: 17,9%). Excluding PPC Zimbabwe, the group's EBITDA
from continuing operations decreased by 2%.
Cash generated from continuing operations before working capital changes decreased by 3% to R1 516 million (March 2021:
R1 559 million). Stringent working capital management resulted in cash generated from continuing operations increasing
by 6% to R1 454 million (March 2021: R1 375 million). Cash generation and preservation remains a key performance
measure for PPC.
Net cash outflow from investing activities reduced to R72 million (March 2021: R392 million) mainly due to the receipt
of R503 million in cash from the disposal of PPC Lime and Botswana Aggregates offset to some extent by an increase in
investments in property, plant and equipment of R186 million. Net cash inflow before financing activities improved to
R973 million (March 2021: R972 million).
Gross debt amounted to R1 581 million on 31 March 2022 (March 2021: R2 628 million). The R1 047 million decline in
gross debt comprises a reduction of borrowings in South Africa of R692 million, CIMERWA Limitada (CIMERWA) of
R216 million and PPC Zimbabwe of R139 million.
CEMENT SOUTH AFRICA AND BOTSWANA
Cement sales volumes in the region for the 12 months ended 31 March 2022 were in line with the prior year as demand
normalised from a high base. Relative to the 12 months ended 31 March 2020 (pre-COVID-19), cement sales volumes
increased by 5% to 9%. South Africa and Botswana cement sales continue to benefit from demand growth in the informal
and rural markets, albeit at a "normalised" rate following the post-COVID-19 lockdown spike in demand. Cement sales
volumes in the inland region also benefited from pockets of demand from industrial construction and mining activity.
As a result, inland region cement sales volumes exceeded pre-COVID-19 levels. Cement sales volumes in the coastal
region experienced low single-digit year-on-year demand growth due to a partial recovery in industrial construction
demand. However, despite the improvement in demand, cement sales in the region are still below pre-COVID-19 levels.
PPC is well-positioned to benefit from a potential boost in cement demand once the government's infrastructure
programme gathers momentum. However, PPC has yet to experience any meaningful uplift in cement sales from this
programme except for limited road construction and rehabilitation activity. The group can immediately make additional
capacity available to capture any upswing in demand.
Cement and clinker imports, mainly from Vietnam, increased by 19% year-on-year and currently exceeds pre-COVID-19 levels.
PPC estimates that imports account for approximately 10% of RSA cement sales. PPC and the industry continue to engage
with the relevant authorities for relief against unfair competition from imports, which threatens the financial
sustainability of a vital component of the manufacturing and construction sector and erodes the industry's ability to
maintain jobs. PPC is committed to working with all parties within the parameters of the prevailing competition laws to
achieve an expeditious outcome.
PPC implemented average price increases of 4% to 7% year-on-year, which partially offset input cost inflation. However,
realised selling prices increased by 5% year-on-year due to a change in product mix and a depreciation of the Botswana
pula against the South African rand.
For the 12 months ended 31 March 2022, South Africa and Botswana cement revenue increased by 4% to R5 415 million
(March 2021: R5 196 million). Relative to the comparable period in 2020, revenue increased by 12%. EBITDA reduced by
5% to R825 million (March 2021: R866 million) with a margin of 15,2% (March 2021: 16,7%). Both EBITDA and EBITDA margin
were impacted by higher input cost inflation and weaker volumes in the second half of FY22 due to a more normalised
demand and higher than usual rainfall. Relative to March 2020, EBITDA increased by 34,6% and EBITDA margins increased
by 2,6%.
MATERIALS BUSINESS
AGGREGATES, READYMIX AND ASH
After experiencing strong demand in the first half of FY22 due to a recovery in construction activity, the materials
business experienced weaker demand in the second half of FY22 as a result of higher than usual rainfall. For the 12
months ended 31 March 2022, sales volumes for the readymix and aggregates businesses increased by 7% and 10%respectively.
Fly ash sales volumes decreased by 17% year-on-year off a high base as ash sales benefited from the shortage of
alternative extenders like slag in the prior period. Relative to the 12 months ended 31 March 2020 (pre-COVID-19),
aggregates and readymix volumes increased by 16% and 3%, respectively, while ash volumes declined by 1%.
Overall, revenue for the materials division increased by 10% to R1 086 million (March 2021: R991 million). Compared to
the 12 months ended 31 March 2020, revenue increased by 5%. EBITDA improved to R41 million (March 2021: R8 million
loss) for the 12 months ended 31 March 2022.
INTERNATIONAL
Zimbabwe
PPC Zimbabwe continues to trade ahead of expectations even though trading conditions remain challenging due to the
macro-economic environment. For the 12 months ended 31 March 2022, cement sales volumes increased by 28% year-on-year
due to retail demand and support from government-funded projects. Relative to the 12 months ended 31 March 2020
(pre-COVID-19), volumes increased by 41%.
Revenue increased by 34% to R2 172 million (March 2021: R1 623 million) as a result of increased cement sales volumes.
Compared to the 12 months ended 31 March 2020 (pre-COVID-19), revenue increased by 17%. PPC Zimbabwe adjusted selling
prices in local currency and US Dollar (US$) to reflect currency depreciation and input cost inflation respectively.
EBITDA for the 12 months ended 31 March 2022 declined by 18,3% to R393 million (March 2021: R481 million) with a reduced
EBITDA margin of 18,1% (March 2021: 29,6%). PPC Zimbabwe incurred additional costs in importing clinker to support
volume growth and offset the impact of a planned and unplanned kiln shutdown during the period. The importation of
clinker, higher maintenance costs and the depreciation of the ZWL dollar against the ZAR negatively impacted EBITDA.
The Reserve Bank of Zimbabwe (RBZ) honoured its obligation to settle PPC Zimbabwe's legacy debt. The debt was
fully repaid during December 2021. PPC Zimbabwe is financially self-sufficient and is focused on cash preservation
and maximising US$ EBITDA. PPC received US$6,2 million in dividends from PPC Zimbabwe in FY22, plus an additional
US$4,4 million in June 2022.
Rwanda
Although COVID-19 related lockdowns unfavourably impacted CIMERWA's cement volumes in the first half of FY22, cement
demand rebounded strongly in the second half post the easing of the lockdown restrictions. Retail demand, exports and
government-funded projects were the main drivers of the rebound in demand.
For the 12 months ended 31 March 2022, cement sales volumes increased by 20% year-on-year while revenues increased by
7% to R1 209 million (March 2021: R1 128 million). Compared to the 12 months ended 31 March 2020, volumes and revenues
increased by 30% and 29%, respectively. The rand strength against the functional currency impacted revenue
contribution. EBITDA of R341 million was in line with the prior comparable period (March 2021: R342 million), while the
EBITDA margin reduced to 28,2% (March 2021: 30,3%).
RESTRUCTURING AND REFINANCING UPDATE
During the financial year under review, PPC Aggregate Quarries Botswana and PPC Lime Limited were successfully sold and
the South African balance sheet de-geared to acceptable levels. The South African debt facilities were also
re-negotiated to reduce the cost of debt and to ensure an optimal mix of the tenure of the long-term facilities.
Solvency was restored to PPC Barnet's balance sheet through the capitalisation of quasi-equity and historical
deficiency funding loans and subsequent to the year-end the debt restructuring became effective thereby restoring
liquidity to the business.
OUTLOOK
As PPC experiences a normalisation of cement demand in South Africa following the post-COVID-19 spike, the group
will redouble its efforts to improve cost competitiveness through improved industrial performance and operational
excellence. To this end, Mokate Ramafoko, former head of PPC International Holdings (Pty) Ltd, has been appointed as
the group managing director for Industrial and Innovation, reporting directly to the group chief executive officer
(CEO), Roland Van Wijnen. He will be responsible for industrial performance, new business and decarbonisation.
PPC's international operations will be managed by the respective in-country boards.
REVIEW CONCLUSION
The provisional report was reviewed by the company's external auditors, Deloitte & Touche, who expressed an unmodified
review conclusion.
The information in this short-form announcement has been extracted from the reviewed provisional report but is itself
not reviewed.
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 the auditor's report together with the accompanying provisional report from PPC's registered
office.
Any reference to future financial performance has not been reviewed by or reported on by the group's external auditors.
Chairman Chief executive officer Chief financial officer
PJ Moleketi R van Wijnen B Berlin
Sandton
27 June 2022
Short-form announcement
This short-form announcement of the provisional report is extracted from the financial information in the condensed
consolidated financial statements and does not contain full or complete details of the provisional report.
This short-form announcement is the responsibility of the board of directors of PPC.
Any investment decisions by investors and/shareholders should be based on consideration of the full provisional report,
as a whole, as published on SENS and the issuer's website as follows:
PPC's' website: https://www.ppc.africa/investors-relations/reports/?t=final-results-reports; and
JSE's website: https://senspdf.jse.co.za/documents/2022/jse/isse/PPC/FY2022.pdf
Copies of the provisional report and the auditor's unmodified review conclusion thereon are also available for
inspection at the company's registered office (by appointment), and may be requested from the company secretary Kevin
Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours.
(A live and recorded video webcast of the results presentation will be held today at 11:00am and can be accessed via
this link: https://www.corpcam.com/PPC27062022)
Registered office:
148 Katherine Street, Sandton, South Africa
(PO Box 787416, Sandton, 2146 South Africa)
DIRECTORS:
PJ Moleketi (chair), R van Wijnen* (CEO), AC Ball, B Berlin (CFO), N Gobodo, K Maphisa, NL Mkhondo, BM Hansen**,
CH Naude, MR Thompson *Dutch **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
Financial Communications Advisor: Instinctif Partners, Louise Fortuin Mobile: +27 71 605 4294
www.ppc.africa
Date: 27-06-2022 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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(PPC or the company or the group)
Short-form announcement
Condensed consolidated financial statements for the year ended 31 March 2022
Salient features (continuing operations)
- Group revenue R9,9 billion (March 2021: R8,9 billion)
- Group EBITDA R1,5 Billion (March 2021: R1,6 billion)
- Earnings/(loss) per share (5) cents (March 2021: 65 cents)
- Headline earnings/(loss) per share (3) cents (March 2021: 3 cents)
- Cash generated from operations R1,5 billion (March 2021: R1,4 billion)
- The group did not declare a dividend in the current or previous period
Roland van Wijnen, CEO, said:
"Our resilient cash generation demonstrates our focus on one of the most important measures of financial
performance. These results were further supported by our efforts to drive efficiencies which helped mitigate
inflationary pressures. Ultimately, Team PPC was able to reduce net debt by R1,2 billion and finalise the work
to achieve a solid financial position. Furthermore, we have set our decarbonisation strategy in motion and are
committed to tackling climate change head on. I extend my gratitude to all our customers for their continued
support and to my colleagues who have worked diligently to ensure PPC continues to sustain its purpose of
empowering people to experience a better quality of life."
REVIEW OF OPERATIONS
The group, in accordance with IFRS 5 - Non-current assets held for sale, continues to account for PPC Barnet as a
discontinued operation. Accordingly, the assets, liabilities and profit or loss are reported separately in the
financial statements for the year ended 31 March 2022. For the year ended 31 March 2021, PPC Barnet, PPC Lime and
Botswana Aggregates were all accounted for as discontinued operations. During the year under review, PPC Lime and
Botswana Aggregates were sold with effect from 30 September 2021 and 16 September 2021 respectively. Regarding PPC
Barnet, binding long-form agreements for the restructure of the senior lender debt were signed on 19 April 2022 and
all the conditions precedent were met on 29 April 2022, from which date PPC will cease to consolidate PPC Barnet.
GROUP PERFORMANCE
Group revenue for the 12 months ended 31 March 2022 increased by 11% to R9 882 million (March 2021: R8 938 million).
Excluding Zimbabwe, group revenue increased by 5%. Revenue in PPC Zimbabwe increased by 34% off the back of a 28%
increase in volumes.
Total costs, being cost of sales together with administration and other operating expenditure, increased by 19% to
R9 360 million (March 2021: R7 887 million). The increase in total costs is significantly affected by an increase in
PPC Zimbabwe's costs of 85%. Other than continuing hyperinflation and the 42% depreciation of the Zimbabwean dollar
(ZWL dollar) against the South African rand (ZAR), the most significant line item was an increase in PPC Zimbabwe's
depreciation expense to R386 million (March 2021: R24 million) due to the application of the effective rate method of
hyperinflating depreciation in the current year. Costs, excluding depreciation and PPC Zimbabwe, increased by 7% with
efficiency gains offsetting input cost inflation.
Profit before tax from continuing operations decreased from R1 765 million to R186 million, due to the items set out
below:
- PPC Zimbabwe incurred a loss before tax of R67 million (March 2021: R263 million profit)
- Excluding PPC Zimbabwe's portion, fair value adjustments and foreign exchange movements resulted in a gain of
R18 million (March 2021: R148 million loss)
- Impairments of R38 million (March 2021: R1 317 million reversal)
- An IFRS - Share-based payment charge of R36 million (March 2021: R21 million).
Excluding the above in both the current and the prior year, operating profit from continuing operations would have
decreased by R43 million or 11%.
Finance costs decreased by 15% to R240 million (March 2021: R283 million) due to lower average borrowings. Finance
costs in South Africa decreased by 4% to R155 million (March 2021: R161 million), while finance costs in the
international operations decreased by 30% to R85 million (March 2021: R122 million).
The group taxation charge for the year amounts to R207 million relative to a charge of R742 million in March 2021.
Discontinued operations, which include PPC Barnet for the full year and PPC Lime and Botswana Aggregates until
30 September and 16 September 2021 respectively, generated a profit of R158 million (March 2021: R1 141 million loss)
for the year. The most significant change year-on-year was an impairment of R761 million in the prior year compared to
a reversal of R215 million in the current year for PPC Barnet at the consolidated level to reflect the economic
position post the restructuring agreements entered into on 31 March 2021.
Earnings per share (EPS) for the period from continuing operations decreased to a loss of 5 cents (March 2021:
65 cents) while headline earnings per share from continuing operations (HEPS) reduced to a loss of 3 cents (March 2021:
3 cents profit).
Group earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 7% to R1 493 million (March
2021: R1 598 million) with an EBITDA margin of 15,1% (March 2021: 17,9%). Excluding PPC Zimbabwe, the group's EBITDA
from continuing operations decreased by 2%.
Cash generated from continuing operations before working capital changes decreased by 3% to R1 516 million (March 2021:
R1 559 million). Stringent working capital management resulted in cash generated from continuing operations increasing
by 6% to R1 454 million (March 2021: R1 375 million). Cash generation and preservation remains a key performance
measure for PPC.
Net cash outflow from investing activities reduced to R72 million (March 2021: R392 million) mainly due to the receipt
of R503 million in cash from the disposal of PPC Lime and Botswana Aggregates offset to some extent by an increase in
investments in property, plant and equipment of R186 million. Net cash inflow before financing activities improved to
R973 million (March 2021: R972 million).
Gross debt amounted to R1 581 million on 31 March 2022 (March 2021: R2 628 million). The R1 047 million decline in
gross debt comprises a reduction of borrowings in South Africa of R692 million, CIMERWA Limitada (CIMERWA) of
R216 million and PPC Zimbabwe of R139 million.
CEMENT SOUTH AFRICA AND BOTSWANA
Cement sales volumes in the region for the 12 months ended 31 March 2022 were in line with the prior year as demand
normalised from a high base. Relative to the 12 months ended 31 March 2020 (pre-COVID-19), cement sales volumes
increased by 5% to 9%. South Africa and Botswana cement sales continue to benefit from demand growth in the informal
and rural markets, albeit at a "normalised" rate following the post-COVID-19 lockdown spike in demand. Cement sales
volumes in the inland region also benefited from pockets of demand from industrial construction and mining activity.
As a result, inland region cement sales volumes exceeded pre-COVID-19 levels. Cement sales volumes in the coastal
region experienced low single-digit year-on-year demand growth due to a partial recovery in industrial construction
demand. However, despite the improvement in demand, cement sales in the region are still below pre-COVID-19 levels.
PPC is well-positioned to benefit from a potential boost in cement demand once the government's infrastructure
programme gathers momentum. However, PPC has yet to experience any meaningful uplift in cement sales from this
programme except for limited road construction and rehabilitation activity. The group can immediately make additional
capacity available to capture any upswing in demand.
Cement and clinker imports, mainly from Vietnam, increased by 19% year-on-year and currently exceeds pre-COVID-19 levels.
PPC estimates that imports account for approximately 10% of RSA cement sales. PPC and the industry continue to engage
with the relevant authorities for relief against unfair competition from imports, which threatens the financial
sustainability of a vital component of the manufacturing and construction sector and erodes the industry's ability to
maintain jobs. PPC is committed to working with all parties within the parameters of the prevailing competition laws to
achieve an expeditious outcome.
PPC implemented average price increases of 4% to 7% year-on-year, which partially offset input cost inflation. However,
realised selling prices increased by 5% year-on-year due to a change in product mix and a depreciation of the Botswana
pula against the South African rand.
For the 12 months ended 31 March 2022, South Africa and Botswana cement revenue increased by 4% to R5 415 million
(March 2021: R5 196 million). Relative to the comparable period in 2020, revenue increased by 12%. EBITDA reduced by
5% to R825 million (March 2021: R866 million) with a margin of 15,2% (March 2021: 16,7%). Both EBITDA and EBITDA margin
were impacted by higher input cost inflation and weaker volumes in the second half of FY22 due to a more normalised
demand and higher than usual rainfall. Relative to March 2020, EBITDA increased by 34,6% and EBITDA margins increased
by 2,6%.
MATERIALS BUSINESS
AGGREGATES, READYMIX AND ASH
After experiencing strong demand in the first half of FY22 due to a recovery in construction activity, the materials
business experienced weaker demand in the second half of FY22 as a result of higher than usual rainfall. For the 12
months ended 31 March 2022, sales volumes for the readymix and aggregates businesses increased by 7% and 10%respectively.
Fly ash sales volumes decreased by 17% year-on-year off a high base as ash sales benefited from the shortage of
alternative extenders like slag in the prior period. Relative to the 12 months ended 31 March 2020 (pre-COVID-19),
aggregates and readymix volumes increased by 16% and 3%, respectively, while ash volumes declined by 1%.
Overall, revenue for the materials division increased by 10% to R1 086 million (March 2021: R991 million). Compared to
the 12 months ended 31 March 2020, revenue increased by 5%. EBITDA improved to R41 million (March 2021: R8 million
loss) for the 12 months ended 31 March 2022.
INTERNATIONAL
Zimbabwe
PPC Zimbabwe continues to trade ahead of expectations even though trading conditions remain challenging due to the
macro-economic environment. For the 12 months ended 31 March 2022, cement sales volumes increased by 28% year-on-year
due to retail demand and support from government-funded projects. Relative to the 12 months ended 31 March 2020
(pre-COVID-19), volumes increased by 41%.
Revenue increased by 34% to R2 172 million (March 2021: R1 623 million) as a result of increased cement sales volumes.
Compared to the 12 months ended 31 March 2020 (pre-COVID-19), revenue increased by 17%. PPC Zimbabwe adjusted selling
prices in local currency and US Dollar (US$) to reflect currency depreciation and input cost inflation respectively.
EBITDA for the 12 months ended 31 March 2022 declined by 18,3% to R393 million (March 2021: R481 million) with a reduced
EBITDA margin of 18,1% (March 2021: 29,6%). PPC Zimbabwe incurred additional costs in importing clinker to support
volume growth and offset the impact of a planned and unplanned kiln shutdown during the period. The importation of
clinker, higher maintenance costs and the depreciation of the ZWL dollar against the ZAR negatively impacted EBITDA.
The Reserve Bank of Zimbabwe (RBZ) honoured its obligation to settle PPC Zimbabwe's legacy debt. The debt was
fully repaid during December 2021. PPC Zimbabwe is financially self-sufficient and is focused on cash preservation
and maximising US$ EBITDA. PPC received US$6,2 million in dividends from PPC Zimbabwe in FY22, plus an additional
US$4,4 million in June 2022.
Rwanda
Although COVID-19 related lockdowns unfavourably impacted CIMERWA's cement volumes in the first half of FY22, cement
demand rebounded strongly in the second half post the easing of the lockdown restrictions. Retail demand, exports and
government-funded projects were the main drivers of the rebound in demand.
For the 12 months ended 31 March 2022, cement sales volumes increased by 20% year-on-year while revenues increased by
7% to R1 209 million (March 2021: R1 128 million). Compared to the 12 months ended 31 March 2020, volumes and revenues
increased by 30% and 29%, respectively. The rand strength against the functional currency impacted revenue
contribution. EBITDA of R341 million was in line with the prior comparable period (March 2021: R342 million), while the
EBITDA margin reduced to 28,2% (March 2021: 30,3%).
RESTRUCTURING AND REFINANCING UPDATE
During the financial year under review, PPC Aggregate Quarries Botswana and PPC Lime Limited were successfully sold and
the South African balance sheet de-geared to acceptable levels. The South African debt facilities were also
re-negotiated to reduce the cost of debt and to ensure an optimal mix of the tenure of the long-term facilities.
Solvency was restored to PPC Barnet's balance sheet through the capitalisation of quasi-equity and historical
deficiency funding loans and subsequent to the year-end the debt restructuring became effective thereby restoring
liquidity to the business.
OUTLOOK
As PPC experiences a normalisation of cement demand in South Africa following the post-COVID-19 spike, the group
will redouble its efforts to improve cost competitiveness through improved industrial performance and operational
excellence. To this end, Mokate Ramafoko, former head of PPC International Holdings (Pty) Ltd, has been appointed as
the group managing director for Industrial and Innovation, reporting directly to the group chief executive officer
(CEO), Roland Van Wijnen. He will be responsible for industrial performance, new business and decarbonisation.
PPC's international operations will be managed by the respective in-country boards.
REVIEW CONCLUSION
The provisional report was reviewed by the company's external auditors, Deloitte & Touche, who expressed an unmodified
review conclusion.
The information in this short-form announcement has been extracted from the reviewed provisional report but is itself
not reviewed.
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 the auditor's report together with the accompanying provisional report from PPC's registered
office.
Any reference to future financial performance has not been reviewed by or reported on by the group's external auditors.
Chairman Chief executive officer Chief financial officer
PJ Moleketi R van Wijnen B Berlin
Sandton
27 June 2022
Short-form announcement
This short-form announcement of the provisional report is extracted from the financial information in the condensed
consolidated financial statements and does not contain full or complete details of the provisional report.
This short-form announcement is the responsibility of the board of directors of PPC.
Any investment decisions by investors and/shareholders should be based on consideration of the full provisional report,
as a whole, as published on SENS and the issuer's website as follows:
PPC's' website: https://www.ppc.africa/investors-relations/reports/?t=final-results-reports; and
JSE's website: https://senspdf.jse.co.za/documents/2022/jse/isse/PPC/FY2022.pdf
Copies of the provisional report and the auditor's unmodified review conclusion thereon are also available for
inspection at the company's registered office (by appointment), and may be requested from the company secretary Kevin
Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours.
(A live and recorded video webcast of the results presentation will be held today at 11:00am and can be accessed via
this link: https://www.corpcam.com/PPC27062022)
Registered office:
148 Katherine Street, Sandton, South Africa
(PO Box 787416, Sandton, 2146 South Africa)
DIRECTORS:
PJ Moleketi (chair), R van Wijnen* (CEO), AC Ball, B Berlin (CFO), N Gobodo, K Maphisa, NL Mkhondo, BM Hansen**,
CH Naude, MR Thompson *Dutch **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
Financial Communications Advisor: Instinctif Partners, Louise Fortuin Mobile: +27 71 605 4294
www.ppc.africa
Date: 27-06-2022 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.
Trading Statement
Trading Statement
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
TRADING STATEMENT
PPC is currently finalising its results for the twelve months ended 31 March 2022 (“the period”). In
terms of the JSE Limited Listings Requirements, shareholders are advised that PPC is satisfied with a
reasonable degree of certainty that the financial results for the period to be reported upon will differ
by at least 20% from that for the previous corresponding period, being the twelve months ended 31
March 2021 ("the prior period").
In accordance with IFRS 5 - Non-current assets held for sale, the group has accounted for its PPC Lime,
Botswana Aggregates and PPC Barnet DRC businesses as discontinued operations.
Earnings per share (“EPS”) from continuing operations for both the period and the prior period is
impacted by material movements in non-cash items, being fair value and foreign exchange
movements, impairments and impairment reversals. In addition, both EPS and headline earnings from
Zimbabwe are impacted by hyperinflation accounting in terms of IAS 29.
EPS for the period from continuing operations is expected to be a loss of between 3 cents and 7 cents
per share, compared to the 65 cents per share profit for the prior period. Headline loss per share for
the period from continuing operations is expected to be between 1 cent and 5 cents per share,
compared to the 3 cents headline earnings per share for the prior period.
EPS for the Group (including discontinued operations) for the period is expected to be between 4 cents
and 6 cents per share, a decrease of between 67% and 50% from the 12 cents per share for the prior
period. Headline loss per share for the period for the Group is expected to be between 12 cents per
share and 15 cents per share, an increase of between 20% and 0% from the 15 cents per share loss for
the prior period.
Earnings before interest, tax, depreciation and amortization (“EBITDA”) from continuing operations,
excluding PPC Zimbabwe’s EBITDA, is expected to be between 0% and 4% lower than the prior period
comparable EBITDA.
Cash generated from continuing operations increased by between 4% and 8% relative the prior period.
The financial information on which this trading statement is based is the responsibility of the directors
of the Company and has not been reviewed or reported on by the Group's independent external
auditor.
The Group's audited annual financial statements for the year ended 31 March 2022 are expected to
be released on or about 27 June 2022.
Sandton
22 June 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 22-06-2022 03:40:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
TRADING STATEMENT
PPC is currently finalising its results for the twelve months ended 31 March 2022 (“the period”). In
terms of the JSE Limited Listings Requirements, shareholders are advised that PPC is satisfied with a
reasonable degree of certainty that the financial results for the period to be reported upon will differ
by at least 20% from that for the previous corresponding period, being the twelve months ended 31
March 2021 ("the prior period").
In accordance with IFRS 5 - Non-current assets held for sale, the group has accounted for its PPC Lime,
Botswana Aggregates and PPC Barnet DRC businesses as discontinued operations.
Earnings per share (“EPS”) from continuing operations for both the period and the prior period is
impacted by material movements in non-cash items, being fair value and foreign exchange
movements, impairments and impairment reversals. In addition, both EPS and headline earnings from
Zimbabwe are impacted by hyperinflation accounting in terms of IAS 29.
EPS for the period from continuing operations is expected to be a loss of between 3 cents and 7 cents
per share, compared to the 65 cents per share profit for the prior period. Headline loss per share for
the period from continuing operations is expected to be between 1 cent and 5 cents per share,
compared to the 3 cents headline earnings per share for the prior period.
EPS for the Group (including discontinued operations) for the period is expected to be between 4 cents
and 6 cents per share, a decrease of between 67% and 50% from the 12 cents per share for the prior
period. Headline loss per share for the period for the Group is expected to be between 12 cents per
share and 15 cents per share, an increase of between 20% and 0% from the 15 cents per share loss for
the prior period.
Earnings before interest, tax, depreciation and amortization (“EBITDA”) from continuing operations,
excluding PPC Zimbabwe’s EBITDA, is expected to be between 0% and 4% lower than the prior period
comparable EBITDA.
Cash generated from continuing operations increased by between 4% and 8% relative the prior period.
The financial information on which this trading statement is based is the responsibility of the directors
of the Company and has not been reviewed or reported on by the Group's independent external
auditor.
The Group's audited annual financial statements for the year ended 31 March 2022 are expected to
be released on or about 27 June 2022.
Sandton
22 June 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 22-06-2022 03:40:00
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.
Change in external auditor
Change in external auditor
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company” or “Group”)
CHANGE IN EXTERNAL AUDITOR
Shareholders of PPC (“Shareholders”) are advised that the board of directors of the Company
(“Board”), on recommendation of PPC’s audit and risk committee, has appointed
PricewaterhouseCoopers Inc. (“PwC”) as the new external auditor of the Group for the financial year
ending 31 March 2023, with the designated audit partner being Nqaba Ndiweni.
The incumbent external auditor, Deloitte & Touche Inc. (“Deloitte”) will continue to act as external
auditor of the Group for the financial year ending 31 March 2022. Deloitte’s appointment will
accordingly terminate upon the conclusion of the audit in respect of the financial year ending 31
March 2022. PwC’s appointment as external auditor will be effective immediately after Deloitte’s
appointment terminates and will be proposed for approval by Shareholders at the annual general
meeting of the Company, scheduled to be held in September 2022.
The change in external auditor follows PPC’s decision to early adopt the mandatory audit firm rotation
rule, issued by the Independent Regulatory Board for Auditors, which will be applicable for financial
years commencing on or after 1 April 2023.
The Board would like to thank Deloitte for their long-standing service to the Group and looks forward
to working with PwC.
Sandton
04 April 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 04-04-2022 03:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company” or “Group”)
CHANGE IN EXTERNAL AUDITOR
Shareholders of PPC (“Shareholders”) are advised that the board of directors of the Company
(“Board”), on recommendation of PPC’s audit and risk committee, has appointed
PricewaterhouseCoopers Inc. (“PwC”) as the new external auditor of the Group for the financial year
ending 31 March 2023, with the designated audit partner being Nqaba Ndiweni.
The incumbent external auditor, Deloitte & Touche Inc. (“Deloitte”) will continue to act as external
auditor of the Group for the financial year ending 31 March 2022. Deloitte’s appointment will
accordingly terminate upon the conclusion of the audit in respect of the financial year ending 31
March 2022. PwC’s appointment as external auditor will be effective immediately after Deloitte’s
appointment terminates and will be proposed for approval by Shareholders at the annual general
meeting of the Company, scheduled to be held in September 2022.
The change in external auditor follows PPC’s decision to early adopt the mandatory audit firm rotation
rule, issued by the Independent Regulatory Board for Auditors, which will be applicable for financial
years commencing on or after 1 April 2023.
The Board would like to thank Deloitte for their long-standing service to the Group and looks forward
to working with PwC.
Sandton
04 April 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 04-04-2022 03:00:00
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.
2022/04/01
Dealing in securities by associate of directors and disclosure of beneficial interest in securities
View ArticleDealing in securities by associate of directors and disclosure of beneficial interest in securities
Dealing in securities by associate of directors and disclosure of beneficial interest in securities
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
DEALING IN SECURITIES BY AN ASSOCIATE OF DIRECTORS AND DISCLOSURE OF BENEFICIAL
INTEREST IN SECURITIES
In compliance with the JSE Limited Listings Requirements, the following
information is disclosed:
Director : Mr AC Ball
Title : Non-Executive Director
Director : Ms N Mkhondo
Title : Non-Executive Director
Company : PPC Limited
Name of Associate : Value Capital Partners (Pty) Ltd*
Date of transaction : 30 March 2022
Number of securities : 4 268 793
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R3.9934
Value of transaction : R17 046 997.97
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
Date of transaction : 31 March 2022
Number of securities : 7 531 207
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R4.1849
Value of transaction : R31 517 348.17
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
* Mr AC Ball and Ms N Mkhondo have an indirect beneficial interest in Value Capital
Partners (Pty) Ltd (“VCP”), which is the registered investment manager to Value
Capital Partners H4 QI Hedge Fund and various other funds.
BENEFICIAL INTEREST IN SECURITIES
In terms of paragraph 3.83(b) of the JSE Listings Requirements and section
122(3)(b) of the Companies Act, No. 71 of 2008, as amended, shareholders are
advised that PPC has received formal notification that VCP has acquired a
beneficial interest in the ordinary shares of the Company, such that the total
interest held in PPC now amounts to 15.05% of the total issued ordinary shares of
the Company.
The board of directors of PPC (“the Board”) accepts responsibility for the
information contained in this announcement as it pertains to the Company. To the
best of the Board's knowledge and belief, the information contained in this
announcement is true and nothing has been omitted which is likely to affect the
importance of such information.
Sandton
1 April 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 01-04-2022 03:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
DEALING IN SECURITIES BY AN ASSOCIATE OF DIRECTORS AND DISCLOSURE OF BENEFICIAL
INTEREST IN SECURITIES
In compliance with the JSE Limited Listings Requirements, the following
information is disclosed:
Director : Mr AC Ball
Title : Non-Executive Director
Director : Ms N Mkhondo
Title : Non-Executive Director
Company : PPC Limited
Name of Associate : Value Capital Partners (Pty) Ltd*
Date of transaction : 30 March 2022
Number of securities : 4 268 793
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R3.9934
Value of transaction : R17 046 997.97
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
Date of transaction : 31 March 2022
Number of securities : 7 531 207
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R4.1849
Value of transaction : R31 517 348.17
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
* Mr AC Ball and Ms N Mkhondo have an indirect beneficial interest in Value Capital
Partners (Pty) Ltd (“VCP”), which is the registered investment manager to Value
Capital Partners H4 QI Hedge Fund and various other funds.
BENEFICIAL INTEREST IN SECURITIES
In terms of paragraph 3.83(b) of the JSE Listings Requirements and section
122(3)(b) of the Companies Act, No. 71 of 2008, as amended, shareholders are
advised that PPC has received formal notification that VCP has acquired a
beneficial interest in the ordinary shares of the Company, such that the total
interest held in PPC now amounts to 15.05% of the total issued ordinary shares of
the Company.
The board of directors of PPC (“the Board”) accepts responsibility for the
information contained in this announcement as it pertains to the Company. To the
best of the Board's knowledge and belief, the information contained in this
announcement is true and nothing has been omitted which is likely to affect the
importance of such information.
Sandton
1 April 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 01-04-2022 03:00:00
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.
Dealing in securities by an associate of directors
Dealing in securities by an associate of directors
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DEALING IN SECURITIES BY AN ASSOCIATE OF DIRECTORS
In compliance with the JSE Limited Listings Requirements, the following information is disclosed:
Director : Mr AC Ball
Title : Non-Executive Director
Director : Ms N Mkhondo
Title : Non-Executive Director
Company : PPC Limited
Name of Associate : Value Capital Partners (Pty) Ltd*
Date of transaction : 23 March 2022
Number of securities : 68 852
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R4.0300
Value of transaction : R277 473.56
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
Date of transaction : 24 March 2022
Number of securities : 8 714 795
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R4.0276
Value of transaction : R35 099 708.34
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
* Mr AC Ball and Ms N Mkhondo have an indirect beneficial interest in Value Capital Partners (Pty) Ltd
(“VCP”), which is the registered investment manager to Value Capital Partners H4 QI Hedge Fund and
various other funds.
Sandton
28 March 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 28-03-2022 03:45:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DEALING IN SECURITIES BY AN ASSOCIATE OF DIRECTORS
In compliance with the JSE Limited Listings Requirements, the following information is disclosed:
Director : Mr AC Ball
Title : Non-Executive Director
Director : Ms N Mkhondo
Title : Non-Executive Director
Company : PPC Limited
Name of Associate : Value Capital Partners (Pty) Ltd*
Date of transaction : 23 March 2022
Number of securities : 68 852
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R4.0300
Value of transaction : R277 473.56
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
Date of transaction : 24 March 2022
Number of securities : 8 714 795
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R4.0276
Value of transaction : R35 099 708.34
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
* Mr AC Ball and Ms N Mkhondo have an indirect beneficial interest in Value Capital Partners (Pty) Ltd
(“VCP”), which is the registered investment manager to Value Capital Partners H4 QI Hedge Fund and
various other funds.
Sandton
28 March 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 28-03-2022 03:45:00
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.
2022/03/23
Operational update for the twelve months ending 31 March 2022 and change to board committee
View ArticleOperational update for the twelve months ending 31 March 2022 and change to board committee
Operational update for the twelve months ending 31 March 2022 and change to board committee
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
OPERATING UPDATE FOR THE TWELVE MONTHS ENDING 31 MARCH 2022 AND CHANGES
TO BOARD COMMITTEE
OPERATING UPDATE FOR THE TWELVE MONTHS ENDING 31 MARCH 2022
GROUP PERFORMANCE
PPC expects total Group cement sales volumes for the twelve months
ending 31 March 2022 to increase by 4%-8% year-on-year, with double-
digit volume growth in Zimbabwe and Rwanda. South Africa and Botswana
cement experienced low single digit growth in cement sales as volumes
normalised from a high base. Relative to the twelve months ended 31
March 2020 (Pre-COVID-19), Group cement sales are expected to increase
by 11%-15%. The Group’s materials businesses also experienced a
recovery in demand with year-on-year growth in sales volumes.
SOUTH AFRICA & BOTSWANA CEMENT
PPC expects cement sales volumes in South Africa & Botswana to increase
by 0%-3% year-on-year for the twelve months ending 31 March 2022. The
prior comparable period benefited from strong retail demand due to
increased expenditure on home improvements. Relative to the twelve
months ended 31 March 2020 (Pre-COVID-19), cement sales in South
Africa & Botswana are expected to increase by 5%-9%.
PPC South Africa and Botswana cement sales continue to benefit from
demand growth in the rural and informal markets, albeit at a
“normalised” rate following the post COVID-19 lockdown spike in
demand. Industrial construction activity in the inland area shows
pockets of demand growth from the construction of distribution centres
and the increase in mining activity.
PPC experienced an increase in cement sales in the coastal region with
low single-digit year-on-year demand growth supported by a recovery
in industrial construction demand. However, despite the improvement
in demand, cement sales in the coastal region is still below the
twelve months ended 31 March 2020 (Pre-COVID-19).
PPC has yet to experience any meaningful uplift in cement sales from
the government’s designation related to the use of locally produced
cement on government projects. Except for some limited road
construction and rehabilitation activity, there have been no large
infrastructure projects. PPC is well-positioned to benefit from this
potential boost in cement demand once the infrastructure programme
gathers momentum. PPC can immediately make additional capacity
available to capture an upswing in demand. PPC implemented price
increases to offset input cost inflation with realised selling prices
increasing by 4%-7% year-on-year for the twelve months ending 31 March
2022.
Cement imports, mainly from Vietnam, increased by 11% year-on-year
and currently exceeds pre-COVID-19 levels. PPC estimates that imports
account for approximately 10% of RSA cement sales. In conjunction with
the industry, PPC continues to engage with the relevant authorities
for relief against unfair competition from imports, which threatens
the financial sustainability of a vital component of the manufacturing
and construction sector and erodes the industry's ability to maintain
jobs.
MATERIALS
The readymix and aggregates businesses continue to experience a
recovery in demand supported by a pick-up in construction activity in
the regions in which they operate. For the twelve months ending 31
March 2022, PPC expects readymix volumes to increase by 5%-10% year-
on-year, while aggregates volumes are expected to increase by 10%-14%
year-on-year. Fly ash sales volumes are expected to decrease by 14%-
18% due to an unusually strong performance in the prior year due to
lack of slag in the market. Overall, revenues for the materials
division are expected to increase due to the increase in sales of
readymix and aggregates.
ZIMBABWE
PPC Zimbabwe continues to trade well and ahead of expectations. For
the twelve months ending 31 March 2022, PPC Zimbabwe’s cement sales
volumes are expected to increase by 21%-25% year-on-year, benefiting
from retail demand, increased sales to concrete product manufacturers,
and support from Government-funded projects. Relative to the
comparable period ended 31 March 2020 (Pre-COVID-19), cement sales
volumes are expected to increase by 33%-36%.
RWANDA
CIMERWA experienced an upswing in cement sales in the last six months
following the initiation of anticipated projects such as the
construction of a new airport. For the twelve months ending 31 March
2022, CIMERWA expects cement sales volumes to increase by 18%-20%
year-on-year due to cement demand for critical infrastructure and
housing projects to realise an urbanisation target of 34% by 2024.
Relative to the comparable period ended 31 March 2020 (Pre-COVID-19),
cement sales volumes are expected to increase by 26%-30%.
LIQUIDITY & CASH FLOW
South Africa gross debt declined to R1.2 billion at 28 February 2022
(30 September 2021: R1.7 billion) due to a continued focus on cash
generation and the proceeds from the sale of PPC Lime, and the Botswana
aggregates business.
OUTLOOK
PPC is well-positioned to benefit from growing cement demand in the
territories it operates. The Group remains focused on improving
operational efficiencies to ensure financial sustainability through
all demand cycles.
PPC CAPITAL MARKETS DAY
PPC is hosting a Capital Markets Day today at 10h00 (SA time) at the
Vineyard Hotel in Cape Town. The event will be broadcast live via a
webcast with live Q & A sessions. Further details can be accessed at
the following links:
Investor presentation:
https://www.ppc.africa/investors-relations/reports/?t=presentations-
allocate
Webcast:
https://presentations.corpcam.com/RegistrationPage.aspx?id=PPC230320
22
CHANGES TO BOARD COMMITTEE
In compliance with paragraph 3.59 of the JSE Listings Requirements, PPC
wishes to advise its shareholders of the renaming of the Investment Committee
to the Strategy and Investment Committee and the appointment of Mr R van
Wijnen as a member of the Strategy and Investment Committee.
The composition of the Strategy and Investment Committee will now be as
follows:
Mr C Naude
Mr A Ball
Mr B Moltke Hansen
Ms K Maphisa
Mr M Thompson
Mr R van Wijnen
Sandton
23 March 2022
Sponsor:
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 23-03-2022 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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
OPERATING UPDATE FOR THE TWELVE MONTHS ENDING 31 MARCH 2022 AND CHANGES
TO BOARD COMMITTEE
OPERATING UPDATE FOR THE TWELVE MONTHS ENDING 31 MARCH 2022
GROUP PERFORMANCE
PPC expects total Group cement sales volumes for the twelve months
ending 31 March 2022 to increase by 4%-8% year-on-year, with double-
digit volume growth in Zimbabwe and Rwanda. South Africa and Botswana
cement experienced low single digit growth in cement sales as volumes
normalised from a high base. Relative to the twelve months ended 31
March 2020 (Pre-COVID-19), Group cement sales are expected to increase
by 11%-15%. The Group’s materials businesses also experienced a
recovery in demand with year-on-year growth in sales volumes.
SOUTH AFRICA & BOTSWANA CEMENT
PPC expects cement sales volumes in South Africa & Botswana to increase
by 0%-3% year-on-year for the twelve months ending 31 March 2022. The
prior comparable period benefited from strong retail demand due to
increased expenditure on home improvements. Relative to the twelve
months ended 31 March 2020 (Pre-COVID-19), cement sales in South
Africa & Botswana are expected to increase by 5%-9%.
PPC South Africa and Botswana cement sales continue to benefit from
demand growth in the rural and informal markets, albeit at a
“normalised” rate following the post COVID-19 lockdown spike in
demand. Industrial construction activity in the inland area shows
pockets of demand growth from the construction of distribution centres
and the increase in mining activity.
PPC experienced an increase in cement sales in the coastal region with
low single-digit year-on-year demand growth supported by a recovery
in industrial construction demand. However, despite the improvement
in demand, cement sales in the coastal region is still below the
twelve months ended 31 March 2020 (Pre-COVID-19).
PPC has yet to experience any meaningful uplift in cement sales from
the government’s designation related to the use of locally produced
cement on government projects. Except for some limited road
construction and rehabilitation activity, there have been no large
infrastructure projects. PPC is well-positioned to benefit from this
potential boost in cement demand once the infrastructure programme
gathers momentum. PPC can immediately make additional capacity
available to capture an upswing in demand. PPC implemented price
increases to offset input cost inflation with realised selling prices
increasing by 4%-7% year-on-year for the twelve months ending 31 March
2022.
Cement imports, mainly from Vietnam, increased by 11% year-on-year
and currently exceeds pre-COVID-19 levels. PPC estimates that imports
account for approximately 10% of RSA cement sales. In conjunction with
the industry, PPC continues to engage with the relevant authorities
for relief against unfair competition from imports, which threatens
the financial sustainability of a vital component of the manufacturing
and construction sector and erodes the industry's ability to maintain
jobs.
MATERIALS
The readymix and aggregates businesses continue to experience a
recovery in demand supported by a pick-up in construction activity in
the regions in which they operate. For the twelve months ending 31
March 2022, PPC expects readymix volumes to increase by 5%-10% year-
on-year, while aggregates volumes are expected to increase by 10%-14%
year-on-year. Fly ash sales volumes are expected to decrease by 14%-
18% due to an unusually strong performance in the prior year due to
lack of slag in the market. Overall, revenues for the materials
division are expected to increase due to the increase in sales of
readymix and aggregates.
ZIMBABWE
PPC Zimbabwe continues to trade well and ahead of expectations. For
the twelve months ending 31 March 2022, PPC Zimbabwe’s cement sales
volumes are expected to increase by 21%-25% year-on-year, benefiting
from retail demand, increased sales to concrete product manufacturers,
and support from Government-funded projects. Relative to the
comparable period ended 31 March 2020 (Pre-COVID-19), cement sales
volumes are expected to increase by 33%-36%.
RWANDA
CIMERWA experienced an upswing in cement sales in the last six months
following the initiation of anticipated projects such as the
construction of a new airport. For the twelve months ending 31 March
2022, CIMERWA expects cement sales volumes to increase by 18%-20%
year-on-year due to cement demand for critical infrastructure and
housing projects to realise an urbanisation target of 34% by 2024.
Relative to the comparable period ended 31 March 2020 (Pre-COVID-19),
cement sales volumes are expected to increase by 26%-30%.
LIQUIDITY & CASH FLOW
South Africa gross debt declined to R1.2 billion at 28 February 2022
(30 September 2021: R1.7 billion) due to a continued focus on cash
generation and the proceeds from the sale of PPC Lime, and the Botswana
aggregates business.
OUTLOOK
PPC is well-positioned to benefit from growing cement demand in the
territories it operates. The Group remains focused on improving
operational efficiencies to ensure financial sustainability through
all demand cycles.
PPC CAPITAL MARKETS DAY
PPC is hosting a Capital Markets Day today at 10h00 (SA time) at the
Vineyard Hotel in Cape Town. The event will be broadcast live via a
webcast with live Q & A sessions. Further details can be accessed at
the following links:
Investor presentation:
https://www.ppc.africa/investors-relations/reports/?t=presentations-
allocate
Webcast:
https://presentations.corpcam.com/RegistrationPage.aspx?id=PPC230320
22
CHANGES TO BOARD COMMITTEE
In compliance with paragraph 3.59 of the JSE Listings Requirements, PPC
wishes to advise its shareholders of the renaming of the Investment Committee
to the Strategy and Investment Committee and the appointment of Mr R van
Wijnen as a member of the Strategy and Investment Committee.
The composition of the Strategy and Investment Committee will now be as
follows:
Mr C Naude
Mr A Ball
Mr B Moltke Hansen
Ms K Maphisa
Mr M Thompson
Mr R van Wijnen
Sandton
23 March 2022
Sponsor:
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 23-03-2022 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.
Dealing in securities by an associate of directors
Dealing in securities by an associate of directors
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DEALING IN SECURITIES BY AN ASSOCIATE OF DIRECTORS
In compliance with the JSE Limited Listings Requirements, the following information is disclosed:
Director : Mr AC Ball
Title : Non-Executive Director
Director : Ms N Mkhondo
Title : Non-Executive Director
Company : PPC Limited
Name of Associate : Value Capital Partners (Pty) Ltd*
Date of transaction : 17 March 2022
Number of securities : 252 539
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R4.0274
Value of transaction : R1 017 075.57
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
* Mr AC Ball and Ms N Mkhondo have an indirect beneficial interest in Value Capital Partners (Pty) Ltd
(“VCP”), which is the registered investment manager to Value Capital Partners H4 QI Hedge Fund and
various other funds.
Sandton
22 March 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 22-03-2022 01:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DEALING IN SECURITIES BY AN ASSOCIATE OF DIRECTORS
In compliance with the JSE Limited Listings Requirements, the following information is disclosed:
Director : Mr AC Ball
Title : Non-Executive Director
Director : Ms N Mkhondo
Title : Non-Executive Director
Company : PPC Limited
Name of Associate : Value Capital Partners (Pty) Ltd*
Date of transaction : 17 March 2022
Number of securities : 252 539
Nature of transaction : On-market acquisition of securities
Class of securities : Ordinary shares
Share price : R4.0274
Value of transaction : R1 017 075.57
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
* Mr AC Ball and Ms N Mkhondo have an indirect beneficial interest in Value Capital Partners (Pty) Ltd
(“VCP”), which is the registered investment manager to Value Capital Partners H4 QI Hedge Fund and
various other funds.
Sandton
22 March 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 22-03-2022 01:30:00
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.
2022/01/25
Dealing in securities by an associate of directors and disclosure of beneficial interests in securities
View ArticleDealing in securities by an associate of directors and disclosure of beneficial interests in securities
Dealing in securities by an associate of directors and disclosure of beneficial interests in securities
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DEALING IN SECURITIES BY AN ASSOCIATE OF DIRECTORS AND DISCLOSURE OF BENEFICIAL INTEREST
IN SECURITIES
In compliance with the JSE Limited Listings Requirements, the following information is disclosed:
Director : Mr AC Ball
Title : Non-Executive Director
Director : Ms N Mkhondo
Title : Non-Executive Director
Company : PPC Limited
Name of Associate : Value Capital Partners (Pty) Ltd*
Date of transaction : 19 January 2022
Number of securities : 30 200 000
Share price : R5.5000
Value of transaction : R166 100 000.00
Date of transaction : 20 January 2022
Number of securities : 8 222 045
Share price : R5.6735
Value of transaction : R46 647 772.31
Date of transaction : 21 January 2022
Number of securities : 514 089
Share price : R5.4039
Value of transaction : R2 778 085.55
Nature of transaction : On-market disposal of securities
Class of securities : Ordinary shares
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
* Mr AC Ball and Ms N Mkhondo have an indirect beneficial interest in Value Capital Partners (Pty) Ltd
(“VCP”), which is the registered investment manager to Value Capital Partners H4 QI Hedge Fund and
various other funds.
BENEFICIAL INTEREST IN SECURITIES
In terms of paragraph 3.83(b) of the JSE Listings Requirements and section 122(3)(b) of the Companies
Act, No. 71 of 2008, as amended, shareholders are advised that PPC has received formal notification
that VCP has disposed of a beneficial interest in the ordinary shares of the Company, such that the
total interest held in PPC now amounts to 13.75% of the total issued ordinary shares of the Company.
TRANSACTION RATIONALE
Through its various funds VCP has been a strategic investor in PPC since August 2017. Since that initial
entry point, VCP has periodically taken advantage of the decline in the PPC share price to increase its
shareholding. Following the rebound in the PPC share price in recent months, PPC has become a
disproportionate share of VCP’s total portfolio. The above transaction forms part of a portfolio
rebalancing to align VCP’s relative exposure in PPC with its overall target asset allocation.
VCP will continue to be represented on the board of directors of PPC and its various sub-committees
by Antony Ball and Nono Mkhondo, who will continue to provide support to PPC as it executes its
strategy to unlock further value for shareholders.
Sandton
25 January 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 25-01-2022 07:55:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DEALING IN SECURITIES BY AN ASSOCIATE OF DIRECTORS AND DISCLOSURE OF BENEFICIAL INTEREST
IN SECURITIES
In compliance with the JSE Limited Listings Requirements, the following information is disclosed:
Director : Mr AC Ball
Title : Non-Executive Director
Director : Ms N Mkhondo
Title : Non-Executive Director
Company : PPC Limited
Name of Associate : Value Capital Partners (Pty) Ltd*
Date of transaction : 19 January 2022
Number of securities : 30 200 000
Share price : R5.5000
Value of transaction : R166 100 000.00
Date of transaction : 20 January 2022
Number of securities : 8 222 045
Share price : R5.6735
Value of transaction : R46 647 772.31
Date of transaction : 21 January 2022
Number of securities : 514 089
Share price : R5.4039
Value of transaction : R2 778 085.55
Nature of transaction : On-market disposal of securities
Class of securities : Ordinary shares
Nature of interest : Indirect Beneficial
Clearance to deal obtained : Yes
* Mr AC Ball and Ms N Mkhondo have an indirect beneficial interest in Value Capital Partners (Pty) Ltd
(“VCP”), which is the registered investment manager to Value Capital Partners H4 QI Hedge Fund and
various other funds.
BENEFICIAL INTEREST IN SECURITIES
In terms of paragraph 3.83(b) of the JSE Listings Requirements and section 122(3)(b) of the Companies
Act, No. 71 of 2008, as amended, shareholders are advised that PPC has received formal notification
that VCP has disposed of a beneficial interest in the ordinary shares of the Company, such that the
total interest held in PPC now amounts to 13.75% of the total issued ordinary shares of the Company.
TRANSACTION RATIONALE
Through its various funds VCP has been a strategic investor in PPC since August 2017. Since that initial
entry point, VCP has periodically taken advantage of the decline in the PPC share price to increase its
shareholding. Following the rebound in the PPC share price in recent months, PPC has become a
disproportionate share of VCP’s total portfolio. The above transaction forms part of a portfolio
rebalancing to align VCP’s relative exposure in PPC with its overall target asset allocation.
VCP will continue to be represented on the board of directors of PPC and its various sub-committees
by Antony Ball and Nono Mkhondo, who will continue to provide support to PPC as it executes its
strategy to unlock further value for shareholders.
Sandton
25 January 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 25-01-2022 07:55:00
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.
Disclosure of beneficial interest in securities
Disclosure of beneficial interest in securities
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DISCLOSURE OF BENEFICIAL INTERESTS IN SECURITIES
In terms of paragraph 3.83(b) of the JSE Listings Requirements and section 122(3)(b) of the Companies
Act, No. 71 of 2008, as amended, shareholders are advised that the Company has received formal
notification that Public Investment Corporation SOC LIMITED acquired an interest in the ordinary
shares of the Company, such that the total interest held in PPC now amounts to 10.249% (previously
5.37%) of the total issued ordinary shares of PPC.
Sandton
24 January 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 24-01-2022 04:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DISCLOSURE OF BENEFICIAL INTERESTS IN SECURITIES
In terms of paragraph 3.83(b) of the JSE Listings Requirements and section 122(3)(b) of the Companies
Act, No. 71 of 2008, as amended, shareholders are advised that the Company has received formal
notification that Public Investment Corporation SOC LIMITED acquired an interest in the ordinary
shares of the Company, such that the total interest held in PPC now amounts to 10.249% (previously
5.37%) of the total issued ordinary shares of PPC.
Sandton
24 January 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 24-01-2022 04:00:00
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.
Dealing in securities by a director
Dealing in securities by a director
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DEALING IN SECURITIES BY A DIRECTOR
In compliance with the JSE Limited Listings Requirements, the following information is disclosed:
Director : Mr R van Wijnen
Title : Chief Executive Officer
Date of transaction : 19 January 2022
Number of securities : 4 545 718
Nature of transaction : On-market sale of securities
Class of securities : Ordinary shares
Share price : R 5.50
Value of transaction : R 25 001 449
Nature of interest : Direct Beneficial
Clearance to deal obtained : Yes
Mr van Wijnen has been a shareholder of PPC since September 2019.
The abovementioned transaction represents the sale of a portion of Mr van Wijnen’s interest in the
Company in order to rebalance his investment portfolio. Post the transaction Mr van Wijnen will
remain a shareholder in PPC holding 4 233 209 shares.
Sandton
21 January 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 21-01-2022 04:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the Company”)
DEALING IN SECURITIES BY A DIRECTOR
In compliance with the JSE Limited Listings Requirements, the following information is disclosed:
Director : Mr R van Wijnen
Title : Chief Executive Officer
Date of transaction : 19 January 2022
Number of securities : 4 545 718
Nature of transaction : On-market sale of securities
Class of securities : Ordinary shares
Share price : R 5.50
Value of transaction : R 25 001 449
Nature of interest : Direct Beneficial
Clearance to deal obtained : Yes
Mr van Wijnen has been a shareholder of PPC since September 2019.
The abovementioned transaction represents the sale of a portion of Mr van Wijnen’s interest in the
Company in order to rebalance his investment portfolio. Post the transaction Mr van Wijnen will
remain a shareholder in PPC holding 4 233 209 shares.
Sandton
21 January 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 21-01-2022 04:00:00
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.
2021
Appointment of Questco as sponsor
Appointment of Questco as sponsor
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”)
APPOINTMENT OF SPONSOR
Following the acquisition by Questco Corporate Advisory Proprietary Limited
(“Questco”) of Sasfin Capital Proprietary Limited’s sponsor division,
shareholders are advised that PPC has appointed Questco as its JSE Sponsor
with effect from Wednesday 1 December 2021.
Sandton
30 November 2021
Sponsor
Sasfin Capital
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 30-11-2021 04:57:00
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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”)
APPOINTMENT OF SPONSOR
Following the acquisition by Questco Corporate Advisory Proprietary Limited
(“Questco”) of Sasfin Capital Proprietary Limited’s sponsor division,
shareholders are advised that PPC has appointed Questco as its JSE Sponsor
with effect from Wednesday 1 December 2021.
Sandton
30 November 2021
Sponsor
Sasfin Capital
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 30-11-2021 04:57:00
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.
Publication of Task Force on Climate-related Financial Disclosures Report
Publication of Task Force on Climate-related Financial Disclosures Report
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Publication of Task Force on Climate-related Financial Disclosures (TCFD) report
PPC today published its inaugural decarbonisation disclosures in line with the
recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). PPC
will also be hosting a presentation to stakeholders highlighting key aspects of the
TCFD report. The online presentation will be presented by PPC’s CEO Roland van Wijnen
and team. Details of the presentation can be accessed using the link below.
https://us15.campaign-archive.com/?e=[UNIQID]&u=5efda6ed9d6989c1b3052a07b&id=81892947b3
The TCFD report and presentation can be accessed on PPC’s website using the links
below.
TCFD report: https://www.ppc.africa/investors-relations/reports/?t=year-end
Presentation: https://www.ppc.africa/investors-relations/reports/?t=presentations-
allocate
Sandton
29 November 2021
Sponsor:
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 29-11-2021 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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Publication of Task Force on Climate-related Financial Disclosures (TCFD) report
PPC today published its inaugural decarbonisation disclosures in line with the
recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). PPC
will also be hosting a presentation to stakeholders highlighting key aspects of the
TCFD report. The online presentation will be presented by PPC’s CEO Roland van Wijnen
and team. Details of the presentation can be accessed using the link below.
https://us15.campaign-archive.com/?e=[UNIQID]&u=5efda6ed9d6989c1b3052a07b&id=81892947b3
The TCFD report and presentation can be accessed on PPC’s website using the links
below.
TCFD report: https://www.ppc.africa/investors-relations/reports/?t=year-end
Presentation: https://www.ppc.africa/investors-relations/reports/?t=presentations-
allocate
Sandton
29 November 2021
Sponsor:
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 29-11-2021 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.
Publication of Task Force on Climate-related Financial Disclosures Report
Publication of Task Force on Climate-related Financial Disclosures Report
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Publication of Task Force on Climate-related Financial Disclosures (“TCFD”) report
In accordance with its undertaking to enhance its disclosure of climate-related
information to stakeholders PPC is pleased to report that it will be publishing its
inaugural TCFD report, to enhance its disclosure to stakeholders regarding climate-
related information, on 29 November 2021. The TCFD report provides a framework for the
publication of more effective climate-related reporting disclosures by companies. PPC
recognises the global threat of climate change and the challenges associated with
achieving net-zero emissions by 2050. The company is committed to reducing its carbon
footprint,and participating in the collective actions needed to address key barriers to
decarbonisation. This report details PPC’s evolving climate change strategy and
outlines the decarbonisation reduction ambitions underpinning that strategy.
The Company’s TCFD report will be published on its website on the 29th November 2021
and the publication will be followed by an online presentation.
Sandton
23 November 2021
Sponsor:
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 23-11-2021 10:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Publication of Task Force on Climate-related Financial Disclosures (“TCFD”) report
In accordance with its undertaking to enhance its disclosure of climate-related
information to stakeholders PPC is pleased to report that it will be publishing its
inaugural TCFD report, to enhance its disclosure to stakeholders regarding climate-
related information, on 29 November 2021. The TCFD report provides a framework for the
publication of more effective climate-related reporting disclosures by companies. PPC
recognises the global threat of climate change and the challenges associated with
achieving net-zero emissions by 2050. The company is committed to reducing its carbon
footprint,and participating in the collective actions needed to address key barriers to
decarbonisation. This report details PPC’s evolving climate change strategy and
outlines the decarbonisation reduction ambitions underpinning that strategy.
The Company’s TCFD report will be published on its website on the 29th November 2021
and the publication will be followed by an online presentation.
Sandton
23 November 2021
Sponsor:
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 23-11-2021 10:00:00
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.
2021/11/22
Group results for the six months ended 30 September 2021 Short Form Announcement
View ArticleGroup results for the six months ended 30 September 2021 Short Form Announcement
Group results for the six months ended 30 September 2021 Short Form Announcement
PPC LTD
Incorporated in the Republic of South Africa
Registration number: 1892/000667/06
JSE/ZSE code: PPC
JSE ISIN: ZAE 000170049
JSE code: PPC003
JSE ISIN: ZAG000117524
"PPC" or "company" or "group"
Short form announcement
Group results for the six months ended September 2021
- R5 131 million Group revenue (September 2020: R4 272 million)
- R945 million Group EBITDA (September 2020: R839 million)
South Africa and Botswana cement
- R2 753 million Revenue (September 2020: R2 355 million)
- R515 million EBITDA (September 2020: R337 million)
- 18,7% EBITDA margin (September 2020: 14,3%; September 2019: 14,4%)
- 66 cents Group basic earnings per share (September 2020: 30 cents)
- 55 cents Group basic headline earnings per share (September 2020: 30 cents)
- Further de-gearing of the group balance sheet by R309 million since 31 March 2021
- The group did not declare a dividend for the current or previous period
- Group restructuring and refinancing project nears completion without the need for a capital raise
COMMENTARY OVERVIEW
Roland van Wijnen, CEO, said: "Team PPC delivered a solid performance, showing results from our efforts to
reposition the business and ensure financial sustainability. My gratitude goes to all my colleagues who have worked
diligently under stringent health and safety protocols to serve our customers and sustain our purpose of empowering
people to experience a better quality of life. Despite some challenging conditions across our markets, we made
significant progress on our strategic objectives which underpin this achievement. We are also nearing the completion
of our capital restructure without the need for an equity capital raise. Optimising our operational efficiencies to
mitigate increasing input cost pressures and reduce our environmental footprint remains a key focus together with
further enhancing our financial position. PPC will continue to play a meaningful role in helping build the countries
we operate in by reliably and responsibly providing high-quality building materials and services."
GROUP PERFORMANCE - CONTINUING OPERATIONS
Revenue for the six months ended 30 September 2021 increased by 20% to R5 131 million (September 2020: R4 272 million)
supported by a 12% period-on-period increase in cement sales volumes. Compared to the interim period ended September
2019, group revenue increased by 25%.
Excluding the financial results of PPC Zimbabwe, which benefited positively from the effects of hyperinflation
accounting, group revenue increased by 12% period-on-period. Group revenue excluding PPC Zimbabwe, increased by 7%
compared to the interim period ended September 2019.
Cost of sales increased by 24% to R4 004 million (September 2020: R3 241 million). Excluding Zimbabwe's cost of sales
for both periods, the increase amounts to 10% period-on-period which is in line with the increase in cement volumes
excluding Zimbabwe.
Administration and other operating expenditure net of sundry income, increased by 15% period-on-period to R526 million
(September 2020: R458 million) due to higher consultancy and legal fees incurred during the current period on the group
restructuring and refinancing project.
Group EBITDA increased by 13% to R945 million (September 2020: R839 million). Compared to the interim period ended
September 2019, EBITDA increased by 29%. Excluding PPC Zimbabwe, EBITDA increased by 28% compared to the six months
ended September 2020 and 23% compared to the six months ended September 2019. Group operating profit increased by 10%
to R633 million (September 2020: R576 million).
Fair value adjustments and foreign exchange movements resulted in a loss of R1 million (September 2020: R369 million
loss), mainly due to significant depreciation of the Zimbabwean dollar (ZWL) against the United States dollar (US$)
of 226% in the comparable period compared to only 4% in the current period.
Fair value gain on the Zimbabwe financial asset amounted to R41 million (September 2020: R139 million). This
consists of intrinsic value gain of R3 million (September 2020: R202 million) and credit risk fair value gain of
R38 million (September 2020: R63 million loss).
During the current period, the group realised a net profit on disposal of subsidiaries of R189 million
(September 2020: nil) from the sale of PPC Lime and PPC Botswana Aggregates.
The application of IAS 29 Financial Reporting in Hyperinflationary Economies resulted in a net monetary gain
amounting to R440 million (September 2020: R326 million).
Finance costs decreased by 6% to R147 million (September 2020: R156 million). In South Africa, finance costs
remained constant due to the benefit of lower average borrowings being offset by an increase in interest rates.
International finance costs decreased by 34% due to a decrease in the principal debt balances and a strengthening
of the rand.
Taxation increased to R201 million (September 2020: R110 million) due to improved profitability. Profit for the
period amounted to R969 million (September 2020: R396 million). Headline earnings increased to R786 million
(September 2020: R396 million).
Group basic earnings per share improved by 120% to 66 cents (September 2020: 30 cents) while total group basic
earnings per share including discontinued operations improved by 221% to 61 cents (September 2020: 19 cents).
Group basic headline earnings per share from continuing operations increased by 83% to 55 cents (September 2020:
30 cents).
Net cash inflow before financing activities amounted to R413 million (September 2020: R598 million) - a decrease
of R185 million. However, adjusting for items relating to discontinued operations, net cash inflow before financing
activities from continuing operations decreased by R66 million.
Gross debt declined to R2 319 million on 30 September 2021 (March 2021: R2 628 million) due to cash generation.
Proceeds from the sale of PPC Lime and the aggregates business in Botswana were also used to repay debt after the
period end.
SOUTH AFRICA AND BOTSWANA CEMENT
Cement sales volumes in the region increased by 12% - 15% period-on-period for the six months ended 30 September 2021
benefiting from strong retail demand. Relative to the comparable period in 2019, cement sales in the region increased
by 3% - 6%. Sales to the retail and rural markets continue to outpace other segments of the market.
PPC implemented price increases that partially offset the input cost inflation of 9,2% with realised selling prices
increasing by 4% - 8% year-on-year for the six months ended 30 September 2021. The effect of cost control and the
increased volumes enabled an increase in EBITDA margin.
PPC welcomes the recent classification of locally produced cement as a designated product by the South African
Government. Designation implies that it is no longer permissible to use imported cement on all government-funded
projects. Furthermore, designation is likely to positively impact the local cement industry once the government's
infrastructure roll out programme gathers momentum. PPC views this development as an essential first step in
ensuring the economic sustainability of the South African cement industry, thereby protecting jobs and ensuring that
the sector can play a meaningful role in helping to rebuild the South African economy.
PPC estimates that cement and clinker imports increased by 30% year-on-year for the nine months ended September 2021.
As a result, PPC forecasts that imports will account for approximately 10% of total industry volumes by the end of 2021.
In conjunction with Cement & Concrete SA (CCSA) and other industry players, PPC is awaiting a decision from the
relevant authorities on an application that seeks relief against unfair competition. The application has been updated
to include both clinker and cement. PPC is committed to working with all parties within the parameters of the
prevailing competition laws to achieve a speedy outcome.
For the six months ended September 2021, PPC South Africa and Botswana cement revenue increased by 17% to R2 753
million (September 2020: R2 355 million). Relative to the comparable period in 2019, revenue increased by 8%. EBITDA
improved by 53% to R515 million (September 2020: R337 million) with a margin of 18,7% (September 2020: 14,3%). Both
EBITDA and EBITDA margin benefited from increased cement sales, higher realised prices and stringent cost control.
Relative to the comparable period in 2019, EBITDA increased by 40% and EBITDA margins increased by 4.4%.
AGGREGATES, READYMIX AND ASH
For the six months ended 30 September 2021, the readymix and aggregates businesses experienced increased demand
due to a recovery in construction activity in the respective addressable markets. Readymix volumes increased by 34%
year-on-year, while aggregates volumes increased by 27% year-on-year. Fly ash sales volumes decreased by 7%
year-on-year off a high base as ash sales in the prior period benefited from the shortage of alternative extenders like
slag. Relative to the interim period ended September 2019, readymix and aggregates volumes declined by 17% and 6%,
respectively due to a slower ramp-up of the infrastructure roll out, while fly ash volumes increased by 18%. Overall,
revenue for the materials division increased by 30% to R600 million (September 2020: R461 million), due to the increase
in sales of readymix and aggregates. Compared to the six months ended September 2019, revenue increased by 6%. EBITDA
improved to R37 million (September 2020: R8 million, loss) for the six months ended 30 September 2021.
INTERNATIONAL
Zimbabwe
Despite the challenging macro-economic environment, PPC Zimbabwe continues to trade well and ahead of expectations. For
the six months ended 30 September 2021, PPC Zimbabwe's cement sales volumes increased by 19% year-on-year due to retail
demand, increased sales to concrete product manufacturers, and support from government-funded projects. Relative to the
comparable period in 2019, cement sales volumes increased by 31%.
Revenue increased by 55% to R1,239 million (September 2020: R797 million) supported by the increase in cement sales.
PPC Zimbabwe adjusted selling prices upwards in local currency to reflect input cost inflation. EBITDA declined by 12%
to R287 million (September 2020: R326 million) with a reduced EBITDA margin of 23% (September 2020: 41%). EBITDA was
negatively impacted by additional costs incurred in the importation of clinker to offset the impact of a planned and
unplanned kiln shut down during the period. Furthermore, the kiln shut down resulted in higher maintenance costs. The
rand strengthened significantly by some 83% against the ZWL compared to the prior period and this negatively impacted
the rand EBITDA. In its functional currency (pre-hyperinflation) EBITDA increased by 26%.
PPC Zimbabwe is financially self-sufficient and is focused on cash preservation and maximising US$ EBITDA given the
prevailing economic conditions. Further, the Reserve Bank of Zimbabwe continues to honour its obligation to settle PPC
Zimbabwe's debt from legacy funds. Management expects the debt to be fully repaid during FY22. During the period under
review, a further dividend of US$3 million was declared of which US$2,7 million was received by PPC.
Rwanda
CIMERWA's cement sales were unfavourably impacted by COVID-19 related lockdowns imposed by the authorities during the
period under review. In addition, the prior comparable period benefited from government infrastructure projects, which
did not reoccur in the current period. As a result, cement sales volumes for the six months ended 30 September 2021
were in line with the prior comparable period. Relative to the same period in 2019, cement sales volumes increased by
10%. Revenue in rand for the six months ended 30 September 2021 declined by 18% to R539 million (September 2020: R659
million) mainly due to rand strength against the functional currency. Relative to the comparable period in 2019,
revenue increased by 5%. EBITDA declined by 27% to R153 million (September 2020: R211 million) and EBITDA margin
reduced to 28,4% (September 2020: 32,0%). A timing difference in plant maintenance impacted EBITDA. CIMERWA incurred
maintenance costs in the current period versus comparable costs being incurred in the second half of FY21. Adjusting
for the timing of the maintenance, EBITDA generation remained at the same level as the comparable period in Rwandan
francs.
GROUP RESTRUCTURING AND REFINANCING PROJECT AND POST REPORTING PERIOD EVENTS
On 29 October 2021, an addendum to the sale and purchase agreement for the sale of PPC Lime was signed in terms of
which R25,1 million of the purchase price was deferred to 31 March 2022 to allow for the conclusion of the
rehabilitation financial provisioning matters. The transaction closed on 29 October 2021 and the purchase price
(excluding the R25,1 million) was received. In total, PPC has received R504 million from the sale of PPC Lime, and the
Botswana aggregates business, which has been used to repay existing debt.
The successful completion of the sale of PPC Lime has eliminated the requirement by the SA lenders for an equity raise.
Pursuant to the term sheets signed with the SA lenders, long-form agreements are progressing well and are expected to
be concluded shortly.
The DRC capital restructuring is progressing, albeit slightly slower than expected. It is now expected that binding
refinancing agreements will be entered into by 30 November 2021 and that the recapitalisation of the PPC Barnet's
balance sheet will occur as a condition subsequent before 31 December 2021. Regardless, subsequent to signing the
binding settlement agreement on 31 March 2021, there is no further recourse by PPC Barnet's lenders to PPC Limited's
balance sheet.
OUTLOOK
Despite the uncertain trading environment and macro-economic backdrop, the group is well-positioned to benefit from
growing cement demand in its markets. PPC will continue to take the necessary measures to mitigate the impact of input
cost inflation, reduce carbon intensity, and enhance its financial resilience.
On behalf of the board
PJ Moleketi R van Wijnen B Berlin
Chairman Chief executive officer Chief financial officer
Sandton
22 November 2021
SHORT FORM STATEMENT
This short form announcement is the responsibility of the directors. It is only a summary of the information contained
in the full announcement and does not contain full or complete details. Any investment decision should be based on the
full announcement accessible from Monday, 22 November 2021, via the JSE link and also available on the Company's
website at https://www.ppc.africa/investors-relations/reports/?t=interim.
A copy of the full announcement is also available for inspection at the company's registered office (by appointment,
observing COVID-19 restrictions) and may be requested from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za)
at no charge, during office hours.
A live and recorded video webcast of the results presentation will be held tomorrow at 11:00am (SAST) and can be
accessed via this link: https://www.corpcam.com/PPCNov2021
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2021/JSE/ISSE/PPC/PPC30Sep.pdf
Directors: PJ Moleketi (chair), R van Wijnen* (CEO), AC Ball, B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa***,
NL Mkhondo, CH Naude, MR Thompson
* Netherlands, ** Denmark, *** Zimbabwean
Registered office: 148 Katherine Street, Sandton, South Africa
PO Box 787416, Sandton, 2146, South Africa
Company secretary: KR Ross
Sponsor: Sasfin Capital, a member of the Sasfin Group
http://www.ppc.africa
These results and other information are available on the PPC website
Date: 22-11-2021 05:30:00
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.
PPC LTD
Incorporated in the Republic of South Africa
Registration number: 1892/000667/06
JSE/ZSE code: PPC
JSE ISIN: ZAE 000170049
JSE code: PPC003
JSE ISIN: ZAG000117524
"PPC" or "company" or "group"
Short form announcement
Group results for the six months ended September 2021
- R5 131 million Group revenue (September 2020: R4 272 million)
- R945 million Group EBITDA (September 2020: R839 million)
South Africa and Botswana cement
- R2 753 million Revenue (September 2020: R2 355 million)
- R515 million EBITDA (September 2020: R337 million)
- 18,7% EBITDA margin (September 2020: 14,3%; September 2019: 14,4%)
- 66 cents Group basic earnings per share (September 2020: 30 cents)
- 55 cents Group basic headline earnings per share (September 2020: 30 cents)
- Further de-gearing of the group balance sheet by R309 million since 31 March 2021
- The group did not declare a dividend for the current or previous period
- Group restructuring and refinancing project nears completion without the need for a capital raise
COMMENTARY OVERVIEW
Roland van Wijnen, CEO, said: "Team PPC delivered a solid performance, showing results from our efforts to
reposition the business and ensure financial sustainability. My gratitude goes to all my colleagues who have worked
diligently under stringent health and safety protocols to serve our customers and sustain our purpose of empowering
people to experience a better quality of life. Despite some challenging conditions across our markets, we made
significant progress on our strategic objectives which underpin this achievement. We are also nearing the completion
of our capital restructure without the need for an equity capital raise. Optimising our operational efficiencies to
mitigate increasing input cost pressures and reduce our environmental footprint remains a key focus together with
further enhancing our financial position. PPC will continue to play a meaningful role in helping build the countries
we operate in by reliably and responsibly providing high-quality building materials and services."
GROUP PERFORMANCE - CONTINUING OPERATIONS
Revenue for the six months ended 30 September 2021 increased by 20% to R5 131 million (September 2020: R4 272 million)
supported by a 12% period-on-period increase in cement sales volumes. Compared to the interim period ended September
2019, group revenue increased by 25%.
Excluding the financial results of PPC Zimbabwe, which benefited positively from the effects of hyperinflation
accounting, group revenue increased by 12% period-on-period. Group revenue excluding PPC Zimbabwe, increased by 7%
compared to the interim period ended September 2019.
Cost of sales increased by 24% to R4 004 million (September 2020: R3 241 million). Excluding Zimbabwe's cost of sales
for both periods, the increase amounts to 10% period-on-period which is in line with the increase in cement volumes
excluding Zimbabwe.
Administration and other operating expenditure net of sundry income, increased by 15% period-on-period to R526 million
(September 2020: R458 million) due to higher consultancy and legal fees incurred during the current period on the group
restructuring and refinancing project.
Group EBITDA increased by 13% to R945 million (September 2020: R839 million). Compared to the interim period ended
September 2019, EBITDA increased by 29%. Excluding PPC Zimbabwe, EBITDA increased by 28% compared to the six months
ended September 2020 and 23% compared to the six months ended September 2019. Group operating profit increased by 10%
to R633 million (September 2020: R576 million).
Fair value adjustments and foreign exchange movements resulted in a loss of R1 million (September 2020: R369 million
loss), mainly due to significant depreciation of the Zimbabwean dollar (ZWL) against the United States dollar (US$)
of 226% in the comparable period compared to only 4% in the current period.
Fair value gain on the Zimbabwe financial asset amounted to R41 million (September 2020: R139 million). This
consists of intrinsic value gain of R3 million (September 2020: R202 million) and credit risk fair value gain of
R38 million (September 2020: R63 million loss).
During the current period, the group realised a net profit on disposal of subsidiaries of R189 million
(September 2020: nil) from the sale of PPC Lime and PPC Botswana Aggregates.
The application of IAS 29 Financial Reporting in Hyperinflationary Economies resulted in a net monetary gain
amounting to R440 million (September 2020: R326 million).
Finance costs decreased by 6% to R147 million (September 2020: R156 million). In South Africa, finance costs
remained constant due to the benefit of lower average borrowings being offset by an increase in interest rates.
International finance costs decreased by 34% due to a decrease in the principal debt balances and a strengthening
of the rand.
Taxation increased to R201 million (September 2020: R110 million) due to improved profitability. Profit for the
period amounted to R969 million (September 2020: R396 million). Headline earnings increased to R786 million
(September 2020: R396 million).
Group basic earnings per share improved by 120% to 66 cents (September 2020: 30 cents) while total group basic
earnings per share including discontinued operations improved by 221% to 61 cents (September 2020: 19 cents).
Group basic headline earnings per share from continuing operations increased by 83% to 55 cents (September 2020:
30 cents).
Net cash inflow before financing activities amounted to R413 million (September 2020: R598 million) - a decrease
of R185 million. However, adjusting for items relating to discontinued operations, net cash inflow before financing
activities from continuing operations decreased by R66 million.
Gross debt declined to R2 319 million on 30 September 2021 (March 2021: R2 628 million) due to cash generation.
Proceeds from the sale of PPC Lime and the aggregates business in Botswana were also used to repay debt after the
period end.
SOUTH AFRICA AND BOTSWANA CEMENT
Cement sales volumes in the region increased by 12% - 15% period-on-period for the six months ended 30 September 2021
benefiting from strong retail demand. Relative to the comparable period in 2019, cement sales in the region increased
by 3% - 6%. Sales to the retail and rural markets continue to outpace other segments of the market.
PPC implemented price increases that partially offset the input cost inflation of 9,2% with realised selling prices
increasing by 4% - 8% year-on-year for the six months ended 30 September 2021. The effect of cost control and the
increased volumes enabled an increase in EBITDA margin.
PPC welcomes the recent classification of locally produced cement as a designated product by the South African
Government. Designation implies that it is no longer permissible to use imported cement on all government-funded
projects. Furthermore, designation is likely to positively impact the local cement industry once the government's
infrastructure roll out programme gathers momentum. PPC views this development as an essential first step in
ensuring the economic sustainability of the South African cement industry, thereby protecting jobs and ensuring that
the sector can play a meaningful role in helping to rebuild the South African economy.
PPC estimates that cement and clinker imports increased by 30% year-on-year for the nine months ended September 2021.
As a result, PPC forecasts that imports will account for approximately 10% of total industry volumes by the end of 2021.
In conjunction with Cement & Concrete SA (CCSA) and other industry players, PPC is awaiting a decision from the
relevant authorities on an application that seeks relief against unfair competition. The application has been updated
to include both clinker and cement. PPC is committed to working with all parties within the parameters of the
prevailing competition laws to achieve a speedy outcome.
For the six months ended September 2021, PPC South Africa and Botswana cement revenue increased by 17% to R2 753
million (September 2020: R2 355 million). Relative to the comparable period in 2019, revenue increased by 8%. EBITDA
improved by 53% to R515 million (September 2020: R337 million) with a margin of 18,7% (September 2020: 14,3%). Both
EBITDA and EBITDA margin benefited from increased cement sales, higher realised prices and stringent cost control.
Relative to the comparable period in 2019, EBITDA increased by 40% and EBITDA margins increased by 4.4%.
AGGREGATES, READYMIX AND ASH
For the six months ended 30 September 2021, the readymix and aggregates businesses experienced increased demand
due to a recovery in construction activity in the respective addressable markets. Readymix volumes increased by 34%
year-on-year, while aggregates volumes increased by 27% year-on-year. Fly ash sales volumes decreased by 7%
year-on-year off a high base as ash sales in the prior period benefited from the shortage of alternative extenders like
slag. Relative to the interim period ended September 2019, readymix and aggregates volumes declined by 17% and 6%,
respectively due to a slower ramp-up of the infrastructure roll out, while fly ash volumes increased by 18%. Overall,
revenue for the materials division increased by 30% to R600 million (September 2020: R461 million), due to the increase
in sales of readymix and aggregates. Compared to the six months ended September 2019, revenue increased by 6%. EBITDA
improved to R37 million (September 2020: R8 million, loss) for the six months ended 30 September 2021.
INTERNATIONAL
Zimbabwe
Despite the challenging macro-economic environment, PPC Zimbabwe continues to trade well and ahead of expectations. For
the six months ended 30 September 2021, PPC Zimbabwe's cement sales volumes increased by 19% year-on-year due to retail
demand, increased sales to concrete product manufacturers, and support from government-funded projects. Relative to the
comparable period in 2019, cement sales volumes increased by 31%.
Revenue increased by 55% to R1,239 million (September 2020: R797 million) supported by the increase in cement sales.
PPC Zimbabwe adjusted selling prices upwards in local currency to reflect input cost inflation. EBITDA declined by 12%
to R287 million (September 2020: R326 million) with a reduced EBITDA margin of 23% (September 2020: 41%). EBITDA was
negatively impacted by additional costs incurred in the importation of clinker to offset the impact of a planned and
unplanned kiln shut down during the period. Furthermore, the kiln shut down resulted in higher maintenance costs. The
rand strengthened significantly by some 83% against the ZWL compared to the prior period and this negatively impacted
the rand EBITDA. In its functional currency (pre-hyperinflation) EBITDA increased by 26%.
PPC Zimbabwe is financially self-sufficient and is focused on cash preservation and maximising US$ EBITDA given the
prevailing economic conditions. Further, the Reserve Bank of Zimbabwe continues to honour its obligation to settle PPC
Zimbabwe's debt from legacy funds. Management expects the debt to be fully repaid during FY22. During the period under
review, a further dividend of US$3 million was declared of which US$2,7 million was received by PPC.
Rwanda
CIMERWA's cement sales were unfavourably impacted by COVID-19 related lockdowns imposed by the authorities during the
period under review. In addition, the prior comparable period benefited from government infrastructure projects, which
did not reoccur in the current period. As a result, cement sales volumes for the six months ended 30 September 2021
were in line with the prior comparable period. Relative to the same period in 2019, cement sales volumes increased by
10%. Revenue in rand for the six months ended 30 September 2021 declined by 18% to R539 million (September 2020: R659
million) mainly due to rand strength against the functional currency. Relative to the comparable period in 2019,
revenue increased by 5%. EBITDA declined by 27% to R153 million (September 2020: R211 million) and EBITDA margin
reduced to 28,4% (September 2020: 32,0%). A timing difference in plant maintenance impacted EBITDA. CIMERWA incurred
maintenance costs in the current period versus comparable costs being incurred in the second half of FY21. Adjusting
for the timing of the maintenance, EBITDA generation remained at the same level as the comparable period in Rwandan
francs.
GROUP RESTRUCTURING AND REFINANCING PROJECT AND POST REPORTING PERIOD EVENTS
On 29 October 2021, an addendum to the sale and purchase agreement for the sale of PPC Lime was signed in terms of
which R25,1 million of the purchase price was deferred to 31 March 2022 to allow for the conclusion of the
rehabilitation financial provisioning matters. The transaction closed on 29 October 2021 and the purchase price
(excluding the R25,1 million) was received. In total, PPC has received R504 million from the sale of PPC Lime, and the
Botswana aggregates business, which has been used to repay existing debt.
The successful completion of the sale of PPC Lime has eliminated the requirement by the SA lenders for an equity raise.
Pursuant to the term sheets signed with the SA lenders, long-form agreements are progressing well and are expected to
be concluded shortly.
The DRC capital restructuring is progressing, albeit slightly slower than expected. It is now expected that binding
refinancing agreements will be entered into by 30 November 2021 and that the recapitalisation of the PPC Barnet's
balance sheet will occur as a condition subsequent before 31 December 2021. Regardless, subsequent to signing the
binding settlement agreement on 31 March 2021, there is no further recourse by PPC Barnet's lenders to PPC Limited's
balance sheet.
OUTLOOK
Despite the uncertain trading environment and macro-economic backdrop, the group is well-positioned to benefit from
growing cement demand in its markets. PPC will continue to take the necessary measures to mitigate the impact of input
cost inflation, reduce carbon intensity, and enhance its financial resilience.
On behalf of the board
PJ Moleketi R van Wijnen B Berlin
Chairman Chief executive officer Chief financial officer
Sandton
22 November 2021
SHORT FORM STATEMENT
This short form announcement is the responsibility of the directors. It is only a summary of the information contained
in the full announcement and does not contain full or complete details. Any investment decision should be based on the
full announcement accessible from Monday, 22 November 2021, via the JSE link and also available on the Company's
website at https://www.ppc.africa/investors-relations/reports/?t=interim.
A copy of the full announcement is also available for inspection at the company's registered office (by appointment,
observing COVID-19 restrictions) and may be requested from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za)
at no charge, during office hours.
A live and recorded video webcast of the results presentation will be held tomorrow at 11:00am (SAST) and can be
accessed via this link: https://www.corpcam.com/PPCNov2021
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2021/JSE/ISSE/PPC/PPC30Sep.pdf
Directors: PJ Moleketi (chair), R van Wijnen* (CEO), AC Ball, B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa***,
NL Mkhondo, CH Naude, MR Thompson
* Netherlands, ** Denmark, *** Zimbabwean
Registered office: 148 Katherine Street, Sandton, South Africa
PO Box 787416, Sandton, 2146, South Africa
Company secretary: KR Ross
Sponsor: Sasfin Capital, a member of the Sasfin Group
http://www.ppc.africa
These results and other information are available on the PPC website
Date: 22-11-2021 05:30:00
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.
Trading Statement
Trading Statement
PPC Limited
(Incorporated in the Republic of South Africa)
(Company Registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE Code: PPC ZSE Code: PPC
("PPC" or "Company" or "Group")
TRADING STATEMENT
PPC is currently finalising its results for the six months ended 30 September 2021 (“the period”). In
terms of the JSE Limited Listings Requirements, shareholders are advised that PPC is satisfied that a
reasonable degree of certainty exists that the financial results for the period to be reported upon will
differ by at least 20% from that for the previous corresponding period, being the six months ended
30 September 2020 ("the prior period").
In accordance with IFRS 5 - Non-current assets held for sale, the group has accounted for its PPC
Barnet DRC business as a discontinued operation. Accordingly, the assets, liabilities and profit and
loss are reported separately in the financial statements for the six months ended 30 September
2021. The September 2020 comparative figures have been re-presented to separately report the
discontinued operations.
Earnings per share ("EPS") for the period for continuing operations is expected to be between 63
cents and 68 cents per share, an increase of between 110% and 126% from the 30 cents per share
for the prior period. Headline earnings per share for the period for continuing operations is expected
to be between 52 cents and 57 cents per share, an increase of between 72% and 89% compared to
the 30 cents per share for the prior period.
EPS for the Group for the period is expected to be between 58 cents and 63 cents per share, an
increase of between 205% and 231% from the 19 cents per share for the prior period. Headline
earnings per share for the period for the Group is expected to be between 39 cents per share and 44
cents per share, an increase of between 105% and 132% compared to the 19 cents per share profit
for the prior period.
Headline earnings for the group exclude the positive impacts of both a reversal of R100 million of the
impairments of property, plant and equipment raised at 31 March 2021 relating to the PPC Barnet
DRC business and the profit on the sale of the PPC Lime and Botswana Aggregates businesses of
R189 million.
Earnings and headline earnings for both the current and prior periods are impacted by hyperinflation
accounting in terms of IAS 29 - Financial accounting in hyperinflationary economies, resulting in a net
monetary gain of R440 million in the current period compared to R326 million in the prior period.
The financial information on which this Trading Statement is based is the responsibility of the
directors of the Company and has not been reviewed or reported on by the Group's independent
auditor.
The Group's unaudited interim financial statements for the period ended 30 September 2021 are
expected to be released on or about 22 November 2021.
Sandton
16 November 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4249
Date: 16-11-2021 01:40:00
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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Company Registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE Code: PPC ZSE Code: PPC
("PPC" or "Company" or "Group")
TRADING STATEMENT
PPC is currently finalising its results for the six months ended 30 September 2021 (“the period”). In
terms of the JSE Limited Listings Requirements, shareholders are advised that PPC is satisfied that a
reasonable degree of certainty exists that the financial results for the period to be reported upon will
differ by at least 20% from that for the previous corresponding period, being the six months ended
30 September 2020 ("the prior period").
In accordance with IFRS 5 - Non-current assets held for sale, the group has accounted for its PPC
Barnet DRC business as a discontinued operation. Accordingly, the assets, liabilities and profit and
loss are reported separately in the financial statements for the six months ended 30 September
2021. The September 2020 comparative figures have been re-presented to separately report the
discontinued operations.
Earnings per share ("EPS") for the period for continuing operations is expected to be between 63
cents and 68 cents per share, an increase of between 110% and 126% from the 30 cents per share
for the prior period. Headline earnings per share for the period for continuing operations is expected
to be between 52 cents and 57 cents per share, an increase of between 72% and 89% compared to
the 30 cents per share for the prior period.
EPS for the Group for the period is expected to be between 58 cents and 63 cents per share, an
increase of between 205% and 231% from the 19 cents per share for the prior period. Headline
earnings per share for the period for the Group is expected to be between 39 cents per share and 44
cents per share, an increase of between 105% and 132% compared to the 19 cents per share profit
for the prior period.
Headline earnings for the group exclude the positive impacts of both a reversal of R100 million of the
impairments of property, plant and equipment raised at 31 March 2021 relating to the PPC Barnet
DRC business and the profit on the sale of the PPC Lime and Botswana Aggregates businesses of
R189 million.
Earnings and headline earnings for both the current and prior periods are impacted by hyperinflation
accounting in terms of IAS 29 - Financial accounting in hyperinflationary economies, resulting in a net
monetary gain of R440 million in the current period compared to R326 million in the prior period.
The financial information on which this Trading Statement is based is the responsibility of the
directors of the Company and has not been reviewed or reported on by the Group's independent
auditor.
The Group's unaudited interim financial statements for the period ended 30 September 2021 are
expected to be released on or about 22 November 2021.
Sandton
16 November 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4249
Date: 16-11-2021 01:40:00
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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.
Change to the Board of Directors of PPC
Change to the Board of Directors of PPC
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”)
CHANGES TO THE BOARD OF DIRECTORS OF PPC (“BOARD”)
In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited,
the Board wishes to inform shareholders of the following change to the Board.
Appointment of a Non-executive Director to the Board
The Board is pleased to announce the appointment of Bjarne Moltke Hansen (“Bjarne”)
as a non-executive director and member of the Social Ethics and Transformation
committee and Investment Committee of PPC with effect 1 November 2021.
Bjarne holds a BSc (engineering) 1984 from the Danish Academy of Engineering
(Akademiingeniør (B). Bjarne is a seasoned non-executive director and chairman
with a wealth of experience and impeccable reputation in the building materials,
cement, and mining industries. Bjarne held senior positions at Unicon, a
manufacturer and supplier of ready-mixed concrete products based in Copenhagen, as
CEO of Cembrit, one of the leading distributors and manufacturers of fibre-cement
products in Europe, and Aalborg Portland Holdings, a building material conglomerate
in Denmark where he was the CEO and Group Executive Vice President of FLSmidth &
Co a global cement and mining equipment supplier. He retired in 2017 and has since
taken on several non-executive directorships including as chairman of Aalborg
Portland Holdings and Bladt Industries which is backed by Nordic Capital and as
board member of the Danish SGD Investment Fund, Investment Committee.
Bjarne currently holds the following Board positions:
Aalborg Portland Holding A/S, (chairman)
Bladt Industries A/S, (chairman)
Pindstrup Mosebrug A/S (chairman)
RM Rich. Müller A/S and Rich. Müller Foundation (chairman)
Randers Tegl A/S and Højslev Teglvaerk A/S (chairman)
Per Aarsleff Holding A/S (board-member)
LKAB (100% Swedish owned), (board-member)
ODICO A/S (board-member)
Danish SGD Investment Fund, Investment Committee (board-member)
The Board welcomes Bjarne Hansen and looks forward to his contribution based on
his extensive experience in leading global businesses within the building
materials, cement and mining industries and as non-executive director to companies
in these industries.
Sandton
18 October 2021
Sponsor
Sasfin Capital
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 18-10-2021 07:25:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”)
CHANGES TO THE BOARD OF DIRECTORS OF PPC (“BOARD”)
In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited,
the Board wishes to inform shareholders of the following change to the Board.
Appointment of a Non-executive Director to the Board
The Board is pleased to announce the appointment of Bjarne Moltke Hansen (“Bjarne”)
as a non-executive director and member of the Social Ethics and Transformation
committee and Investment Committee of PPC with effect 1 November 2021.
Bjarne holds a BSc (engineering) 1984 from the Danish Academy of Engineering
(Akademiingeniør (B). Bjarne is a seasoned non-executive director and chairman
with a wealth of experience and impeccable reputation in the building materials,
cement, and mining industries. Bjarne held senior positions at Unicon, a
manufacturer and supplier of ready-mixed concrete products based in Copenhagen, as
CEO of Cembrit, one of the leading distributors and manufacturers of fibre-cement
products in Europe, and Aalborg Portland Holdings, a building material conglomerate
in Denmark where he was the CEO and Group Executive Vice President of FLSmidth &
Co a global cement and mining equipment supplier. He retired in 2017 and has since
taken on several non-executive directorships including as chairman of Aalborg
Portland Holdings and Bladt Industries which is backed by Nordic Capital and as
board member of the Danish SGD Investment Fund, Investment Committee.
Bjarne currently holds the following Board positions:
Aalborg Portland Holding A/S, (chairman)
Bladt Industries A/S, (chairman)
Pindstrup Mosebrug A/S (chairman)
RM Rich. Müller A/S and Rich. Müller Foundation (chairman)
Randers Tegl A/S and Højslev Teglvaerk A/S (chairman)
Per Aarsleff Holding A/S (board-member)
LKAB (100% Swedish owned), (board-member)
ODICO A/S (board-member)
Danish SGD Investment Fund, Investment Committee (board-member)
The Board welcomes Bjarne Hansen and looks forward to his contribution based on
his extensive experience in leading global businesses within the building
materials, cement and mining industries and as non-executive director to companies
in these industries.
Sandton
18 October 2021
Sponsor
Sasfin Capital
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 18-10-2021 07:25:00
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.
Disclosure of beneficial interests in securities
Disclosure of beneficial interests in securities
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Disclosure of Beneficial Interests in Securities
In terms of paragraph 3.83(b) of the JSE Listings Requirements and section 122(3)(b) of
the Companies Act, No. 71 of 2008, as amended, shareholders are advised that the
Company has received formal notification that Public Investment Corporation SOC
LIMITED, acquired an interest in the ordinary shares of the Company, such that the
total interest held in PPC now amounts to 5.370% of the total issued ordinary shares of
PPC.
Sandton
12 October 2021
Sponsor:
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 12-10-2021 12:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Disclosure of Beneficial Interests in Securities
In terms of paragraph 3.83(b) of the JSE Listings Requirements and section 122(3)(b) of
the Companies Act, No. 71 of 2008, as amended, shareholders are advised that the
Company has received formal notification that Public Investment Corporation SOC
LIMITED, acquired an interest in the ordinary shares of the Company, such that the
total interest held in PPC now amounts to 5.370% of the total issued ordinary shares of
PPC.
Sandton
12 October 2021
Sponsor:
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 12-10-2021 12:00:00
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.
Disclosure of beneficial interest in securities
Disclosure of beneficial interest in securities
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Disclosure of Beneficial Interests in Securities
In terms of paragraph 3.83(b) of the JSE Listings Requirements and section 122(3)(b) of
the Companies Act, No. 71 of 2008, as amended, shareholders are advised that the
Company has received formal notification that Sanlam Investment Management (Pty) Ltd
has and on behalf of its clients, in aggregate, acquired an interest in the ordinary
shares of the Company, such that the total interest held in PPC now amounts to 5.09% of
the total issued ordinary shares of PPC.
Sandton
30 September 2021
Sponsor:
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 30-09-2021 08:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Disclosure of Beneficial Interests in Securities
In terms of paragraph 3.83(b) of the JSE Listings Requirements and section 122(3)(b) of
the Companies Act, No. 71 of 2008, as amended, shareholders are advised that the
Company has received formal notification that Sanlam Investment Management (Pty) Ltd
has and on behalf of its clients, in aggregate, acquired an interest in the ordinary
shares of the Company, such that the total interest held in PPC now amounts to 5.09% of
the total issued ordinary shares of PPC.
Sandton
30 September 2021
Sponsor:
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 30-09-2021 08:00:00
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.
2021/09/28
Restructuring and Refinancing Project Update and Operating update for the six month ending 30 September 2021
View ArticleRestructuring and Refinancing Project Update and Operating update for the six month ending 30 September 2021
Restructuring and Refinancing Project Update and Operating update for the six month ending 30 September 2021
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
RESTRUCTURING AND REFINANCING PROJECT UPDATE
OPERATING UPDATE FOR THE SIX MONTHS ENDING 30 SEPTEMBER 2021
Shareholders of the Company ("Shareholders") are referred to the
previous announcements released on the Stock Exchange News Service
(“SENS”), relating to PPC’s Restructuring and Refinancing Project,
including the announcement released on 31 March 2021, wherein they
were advised on the status of the restructuring and refinancing
project underway.
UPDATE ON NEGOTIATIONS WITH THE SA LENDERS TO RESTRUCTURE THE SOUTH
AFRICAN BALANCE SHEET AND REMOVAL OF UNDERTAKING TO RAISE EQUITY
CAPITAL
PPC has previously advised Shareholders that its South African Lenders
("SA Lenders") had agreed to defer the timing of the proposed equity
capital raise to de-gear its South African balance sheet ("Capital
Raise") to the end of September 2021. PPC further advised Shareholders
that the SA Lenders had also agreed to review the need for the Capital
Raise should the South African businesses continue to de-gear towards
a sustainable debt metric of c.2x EBITDA.
PPC is pleased to inform Shareholders that it has signed non-binding
term sheets with the SA Lenders to refinance its existing debt
obligations and remove the undertaking for a Capital Raise subject to
the completion of the disposal of PPC Lime by 31 October 2021.
UPDATE ON THE DISPOSAL OF PPC LIME LIMITED
PPC previously advised Shareholders that PPC South Africa Holdings
Proprietary Limited had entered into a binding agreement to dispose
of its entire shareholding in PPC Lime for a consideration of R515
million ("PPC Lime Disposal") on terms and conditions set out in the
announcement. On 20 September 2021 Shareholders were informed that
all outstanding conditions precedent in relation to the PPC Lime
Disposal had been fulfilled on 17 September 2021.
In terms of the Agreement, the effective date of the PPC Lime Disposal
is the last day of the month in which the final condition precedent
is fulfilled and will therefore be 30 September 2021. The closing date
on which the purchase price, including interest, will be received is
expected to be 10 business days thereafter on 14 October 2021.
REFINANCING OF PPC’S SOUTH AFRICAN DEBT FACILITIES
PPC refers Shareholders to previous announcements regarding
negotiations with its SA lenders on its existing debt arrangements to
enhance the Group’s financial flexibility. The new facilities of R2.1
billion, as per the signed non-binding term sheets with the SA Lenders,
have an extended maturity profile with the long-term facility of R1.5
billion being repayable over three to five years. The margins have
been reduced across all facilities to reflect PPC’s improved credit
risk profile. PPC will use the new facilities to re-finance the drawn
portions of existing facilities, leaving adequate headroom and
financial flexibility over the next five years.
DRC CAPITAL RESTRUCTURING
As previously announced, the binding settlement agreement entered into
on 31 March 2021 with the DRC Lenders terminated PPC’s obligations to
make further deficiency funding payments to PPC Barnet. The term
sheet, also signed on 31 March 2021, envisaged restructuring of PPC
Barnet’s balance sheet by 30 September 2021. It is now envisaged that
binding long-form restructuring agreements with the DRC Lenders will
only be signed after 30 September 2021, with the administrative
processes to restructure PPC Barnet’s balance sheet to re-store
solvency and liquidity to be effective by mid-December 2021.
Notwithstanding the delay in the restructuring, the DRC Lenders have
no further recourse to PPC Ltd.
OPERATING UPDATE FOR THE SIX MONTHS ENDING 30 SEPTEMBER 2021
GROUP PERFORMANCE
PPC expects total Group cement sales volumes for the six months ending
30 September 2021 to increase by 10%-13% year-on-year, with double-
digit volume growth in most business units. Relative to the comparable
period in 2019, total cement sales are expected to increase by 6%-9%.
The Group’s materials businesses also experienced double-digit year-
on-year growth in sales volumes.
SOUTH AFRICA & BOTSWANA CEMENT
PPC expects cement sales volumes in the region to increase by 10%-13%
year-on-year for the six months ending 30 September 2021 due to strong
retail demand. Relative to the comparable period in 2019, cement sales
in the region are expected to increase by 3%-6%. Growth in cement
sales volumes in the informal and rural markets continues to outpace
other segments of the market. After experiencing a lagged recovery
relative to the inland region, PPC experienced double-digit year-on-
year growth in cement sales volumes in the coastal region, albeit from
a lower base, with most of the recovery in sales occurring after July
2021. PPC remains cautious on the outlook for demand in the coastal
area due to a slow recovery in commercial construction activity. PPC
implemented price increases to offset input cost inflation with
realised selling prices increasing by 5%-10% year-on-year for the six
months ending 30 September 2021.
Cement imports continue to threaten the sustainability of the South
African cement industry, with total imports increasing by 14% year-
on-year after adjusting for the impact of the hard lockdown in the
prior comparable period. PPC estimates that imports will account for
approximately 10% of total industry volumes by the end of 2021.
Although the South African cement industry has experienced an upswing
in demand following the initial COVID-19 related hard lockdowns in
2020, total industry demand is below levels that will incentivise new
investments in the industry. In addition, the lack of relief against
unfair competition [Dumping] is threatening the financial
sustainability of a vital component of the manufacturing and
construction sector. It is also eroding the industry's ability to
create jobs.
In conjunction with Cement & Concrete SA (CCSA) and other industry
players, PPC is awaiting a decision from the relevant authorities on
an application that seeks relief against unfair competition. The
application has been updated to include both clinker and cement. PPC
is committed to working with all parties to achieve a speedy outcome.
The South African cement industry is also awaiting a decision from
the authorities to classify locally produced cement as a designated
product, making it compulsory for locally produced cement to be used
in government-funded construction projects and to prohibit the use of
imported cement in such projects. Upon implementation, the local
cement industry is expected to benefit from increased demand due to
the new designation once the Government's infrastructure build
programme gathers pace. PPC continues to work with the relevant
stakeholders on this matter.
MATERIALS
Due to increased construction activity, the readymix and aggregates
businesses experienced a recovery in demand for the six months ending
30 September 2021. PPC expects readymix volumes to increase by 33%-
37% year-on-year, while aggregates volumes are expected to increase
by 22%-26% year-on-year. Fly ash sales volumes are expected to
increase by 2%-5%. Overall, revenues for the materials division are
expected to increase due to the increase in sales of readymix and
aggregates.
ZIMBABWE
PPC Zimbabwe continues to trade ahead of expectations despite the
challenging macro-economic environment. For the six months ending 30
September 2021, PPC Zimbabwe’s cement sales volumes are expected to
increase by 14%-18% year-on-year benefiting from retail demand,
increased sales to concrete product manufacturers, and support from
Government-funded projects. Relative to the comparable period in 2019,
cement sales volumes are expected to increase by 25%-29%.
RWANDA
COVID-19 related lockdowns imposed by the authorities to control the
spread of the virus continue to have an unfavourable impact on
CIMERWA's cement sales. In addition, the prior year benefited from
government infrastructure projects which did not reoccur in the
current period. Despite this, cement sales volumes for the six months
ending 30 September 2021 are expected to be in line with the prior
comparable period. Relative to the same period in 2019, CIMERWA
expects cement sales volumes to increase by 7%-10%. Revenue in Rands
for the six months ending 30 September 2021 is expected to decline
year-on-year due to Rand strength against the functional currency.
PPC expects additional improvements in sales over the coming months
as economic activity gathers momentum on the back of improving
vaccination rates and infrastructure projects.
LIQUIDITY & CASH FLOW
Cash generation benefited from the Group's financial performance
improvements and its numerous cash generation and preservation
measures. As a result, South Africa gross debt declined to R1.8 billion
(31 March 2021: R1.9 billion) and will reduce further by approximately
R550 million when the proceeds of the disposals of PPC Lime and PPC
Aggregate Quarries Botswana Proprietary Limited are received in
October 2021.
OUTLOOK
Although PPC continues to face uncertain trading conditions, the Group
is well-positioned to benefit from growing cement demand in the
territories in which it operates. PPC will also continue to take the
necessary measures to ensure that it can continue serving its
customers, protecting its employees, and implementing strategic
initiatives to ensure financial sustainability through all demand
cycles.
Sandton
28 September 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 28-09-2021 07:59:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
RESTRUCTURING AND REFINANCING PROJECT UPDATE
OPERATING UPDATE FOR THE SIX MONTHS ENDING 30 SEPTEMBER 2021
Shareholders of the Company ("Shareholders") are referred to the
previous announcements released on the Stock Exchange News Service
(“SENS”), relating to PPC’s Restructuring and Refinancing Project,
including the announcement released on 31 March 2021, wherein they
were advised on the status of the restructuring and refinancing
project underway.
UPDATE ON NEGOTIATIONS WITH THE SA LENDERS TO RESTRUCTURE THE SOUTH
AFRICAN BALANCE SHEET AND REMOVAL OF UNDERTAKING TO RAISE EQUITY
CAPITAL
PPC has previously advised Shareholders that its South African Lenders
("SA Lenders") had agreed to defer the timing of the proposed equity
capital raise to de-gear its South African balance sheet ("Capital
Raise") to the end of September 2021. PPC further advised Shareholders
that the SA Lenders had also agreed to review the need for the Capital
Raise should the South African businesses continue to de-gear towards
a sustainable debt metric of c.2x EBITDA.
PPC is pleased to inform Shareholders that it has signed non-binding
term sheets with the SA Lenders to refinance its existing debt
obligations and remove the undertaking for a Capital Raise subject to
the completion of the disposal of PPC Lime by 31 October 2021.
UPDATE ON THE DISPOSAL OF PPC LIME LIMITED
PPC previously advised Shareholders that PPC South Africa Holdings
Proprietary Limited had entered into a binding agreement to dispose
of its entire shareholding in PPC Lime for a consideration of R515
million ("PPC Lime Disposal") on terms and conditions set out in the
announcement. On 20 September 2021 Shareholders were informed that
all outstanding conditions precedent in relation to the PPC Lime
Disposal had been fulfilled on 17 September 2021.
In terms of the Agreement, the effective date of the PPC Lime Disposal
is the last day of the month in which the final condition precedent
is fulfilled and will therefore be 30 September 2021. The closing date
on which the purchase price, including interest, will be received is
expected to be 10 business days thereafter on 14 October 2021.
REFINANCING OF PPC’S SOUTH AFRICAN DEBT FACILITIES
PPC refers Shareholders to previous announcements regarding
negotiations with its SA lenders on its existing debt arrangements to
enhance the Group’s financial flexibility. The new facilities of R2.1
billion, as per the signed non-binding term sheets with the SA Lenders,
have an extended maturity profile with the long-term facility of R1.5
billion being repayable over three to five years. The margins have
been reduced across all facilities to reflect PPC’s improved credit
risk profile. PPC will use the new facilities to re-finance the drawn
portions of existing facilities, leaving adequate headroom and
financial flexibility over the next five years.
DRC CAPITAL RESTRUCTURING
As previously announced, the binding settlement agreement entered into
on 31 March 2021 with the DRC Lenders terminated PPC’s obligations to
make further deficiency funding payments to PPC Barnet. The term
sheet, also signed on 31 March 2021, envisaged restructuring of PPC
Barnet’s balance sheet by 30 September 2021. It is now envisaged that
binding long-form restructuring agreements with the DRC Lenders will
only be signed after 30 September 2021, with the administrative
processes to restructure PPC Barnet’s balance sheet to re-store
solvency and liquidity to be effective by mid-December 2021.
Notwithstanding the delay in the restructuring, the DRC Lenders have
no further recourse to PPC Ltd.
OPERATING UPDATE FOR THE SIX MONTHS ENDING 30 SEPTEMBER 2021
GROUP PERFORMANCE
PPC expects total Group cement sales volumes for the six months ending
30 September 2021 to increase by 10%-13% year-on-year, with double-
digit volume growth in most business units. Relative to the comparable
period in 2019, total cement sales are expected to increase by 6%-9%.
The Group’s materials businesses also experienced double-digit year-
on-year growth in sales volumes.
SOUTH AFRICA & BOTSWANA CEMENT
PPC expects cement sales volumes in the region to increase by 10%-13%
year-on-year for the six months ending 30 September 2021 due to strong
retail demand. Relative to the comparable period in 2019, cement sales
in the region are expected to increase by 3%-6%. Growth in cement
sales volumes in the informal and rural markets continues to outpace
other segments of the market. After experiencing a lagged recovery
relative to the inland region, PPC experienced double-digit year-on-
year growth in cement sales volumes in the coastal region, albeit from
a lower base, with most of the recovery in sales occurring after July
2021. PPC remains cautious on the outlook for demand in the coastal
area due to a slow recovery in commercial construction activity. PPC
implemented price increases to offset input cost inflation with
realised selling prices increasing by 5%-10% year-on-year for the six
months ending 30 September 2021.
Cement imports continue to threaten the sustainability of the South
African cement industry, with total imports increasing by 14% year-
on-year after adjusting for the impact of the hard lockdown in the
prior comparable period. PPC estimates that imports will account for
approximately 10% of total industry volumes by the end of 2021.
Although the South African cement industry has experienced an upswing
in demand following the initial COVID-19 related hard lockdowns in
2020, total industry demand is below levels that will incentivise new
investments in the industry. In addition, the lack of relief against
unfair competition [Dumping] is threatening the financial
sustainability of a vital component of the manufacturing and
construction sector. It is also eroding the industry's ability to
create jobs.
In conjunction with Cement & Concrete SA (CCSA) and other industry
players, PPC is awaiting a decision from the relevant authorities on
an application that seeks relief against unfair competition. The
application has been updated to include both clinker and cement. PPC
is committed to working with all parties to achieve a speedy outcome.
The South African cement industry is also awaiting a decision from
the authorities to classify locally produced cement as a designated
product, making it compulsory for locally produced cement to be used
in government-funded construction projects and to prohibit the use of
imported cement in such projects. Upon implementation, the local
cement industry is expected to benefit from increased demand due to
the new designation once the Government's infrastructure build
programme gathers pace. PPC continues to work with the relevant
stakeholders on this matter.
MATERIALS
Due to increased construction activity, the readymix and aggregates
businesses experienced a recovery in demand for the six months ending
30 September 2021. PPC expects readymix volumes to increase by 33%-
37% year-on-year, while aggregates volumes are expected to increase
by 22%-26% year-on-year. Fly ash sales volumes are expected to
increase by 2%-5%. Overall, revenues for the materials division are
expected to increase due to the increase in sales of readymix and
aggregates.
ZIMBABWE
PPC Zimbabwe continues to trade ahead of expectations despite the
challenging macro-economic environment. For the six months ending 30
September 2021, PPC Zimbabwe’s cement sales volumes are expected to
increase by 14%-18% year-on-year benefiting from retail demand,
increased sales to concrete product manufacturers, and support from
Government-funded projects. Relative to the comparable period in 2019,
cement sales volumes are expected to increase by 25%-29%.
RWANDA
COVID-19 related lockdowns imposed by the authorities to control the
spread of the virus continue to have an unfavourable impact on
CIMERWA's cement sales. In addition, the prior year benefited from
government infrastructure projects which did not reoccur in the
current period. Despite this, cement sales volumes for the six months
ending 30 September 2021 are expected to be in line with the prior
comparable period. Relative to the same period in 2019, CIMERWA
expects cement sales volumes to increase by 7%-10%. Revenue in Rands
for the six months ending 30 September 2021 is expected to decline
year-on-year due to Rand strength against the functional currency.
PPC expects additional improvements in sales over the coming months
as economic activity gathers momentum on the back of improving
vaccination rates and infrastructure projects.
LIQUIDITY & CASH FLOW
Cash generation benefited from the Group's financial performance
improvements and its numerous cash generation and preservation
measures. As a result, South Africa gross debt declined to R1.8 billion
(31 March 2021: R1.9 billion) and will reduce further by approximately
R550 million when the proceeds of the disposals of PPC Lime and PPC
Aggregate Quarries Botswana Proprietary Limited are received in
October 2021.
OUTLOOK
Although PPC continues to face uncertain trading conditions, the Group
is well-positioned to benefit from growing cement demand in the
territories in which it operates. PPC will also continue to take the
necessary measures to ensure that it can continue serving its
customers, protecting its employees, and implementing strategic
initiatives to ensure financial sustainability through all demand
cycles.
Sandton
28 September 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 28-09-2021 07:59:00
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.
2021/09/20
Fulfilment of conditions precedent to disposal of PPC Lime and PPC Aggregate Quaries Botswana
View ArticleFulfilment of conditions precedent to disposal of PPC Lime and PPC Aggregate Quaries Botswana
Fulfilment of conditions precedent to disposal of PPC Lime and PPC Aggregate Quaries Botswana
PPC Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1892/000667/06)
ISIN: ZAE000170049
Share Code: PPC ZSE code: PPC
(“PPC” or the “Company” or the “Group”)
FULFILLMENT OF CONDITIONS PRECEDENT IN RELATION TO THE DISPOSAL OF PPC LIME
LIMITED AND PPC AGGREGATE QUARRIES BOTSWANA PROPRIETARY LIMITED
1. INTRODUCTION
Shareholders of the Company (“Shareholders”) are referred to the announcement released on the
Stock Exchange News Service (“SENS”) on 3 May 2021 titled ‘PPC Disposal of PPC Lime Limited and
Withdrawal of Cautionary Announcement’ and the announcement released on SENS on 8 June 2021
titled ‘Trading Statement and Sale of PPC Aggregate Quarries Botswana Proprietary Limited’ wherein
Shareholders were advised of the sale of PPC Lime Limited (“PPC Lime Disposal”) and PPC Aggregate
Quarries Botswana Proprietary Limited (“PPC AQB Disposal”).
2. PPC LIME DISPOSAL
In terms of the PPC Lime Disposal, PPC South Africa Holdings Proprietary Limited, a wholly-owned
subsidiary of the Company, entered into transaction agreements with Kgatelopele Lime Proprietary
Limited (“Kgatelopele Lime”), to dispose of the entire issued share capital of PPC Lime (the
“Divestment”). The Divestment was subject to the fulfilment of, inter alia, the following conditions
precedent (“Divestment Conditions”) by 31 December 2021:
- Approval of the Divestment by the relevant competition authorities in terms of the Competition
Act, Act 89 of 1998;
- Consent of the Minister of Mineral Resources and Energy in terms of section 11 of the Minerals
and Petroleum Resources Development Act, Act 28 of 2002;
- Written proof being obtained to the satisfaction of PPC and the Department of Mineral Resources
and Energy that Kgatelopele has made financial provision in respect of the rehabilitation liability
of PPC Lime; and
- Exemption being granted in terms of section 119(6) of the Companies Act, Act 71 of 2008 from
the application of Parts B and C of Chapter 5 of the Companies Act and the Takeover Regulations
with respect to the implementation of the Divestment.
1
3. PPC AQB DISPOSAL
In terms of the PPC AQB Disposal a binding sale and purchase agreement was entered into between
PPC Botswana Proprietary Limited (a wholly-owned subsidiary of PPC) and a construction and mining
company in Botswana, to sell PPC's 100% shareholding in PPC AQB.
4. FINALISATION
The board of directors of PPC is pleased to announce that the last of the Divestment Conditions was
met on 17 September 2021 and the last of the conditions precedent relating to the sale of PPC AQB
was met on 15 September 2021.
The net proceeds from the sale of PPC Lime and the proceeds from the sale of PPC AQB, both of which
are subject to adjustment, will be applied to de-gear PPC’s South African balance sheet.
5. PPC RESTRUCTURING AND REFINANCE PROJECT
The completion of the sale of PPC Lime and PPC AQB is an important and positive step in the ongoing
capital restructuring and refinancing project. Shareholders are advised that the Company expects to
release a further update on the restructuring and refinancing project as well as a trading update on or
about 29 September 2021.
Sandton
20 September 2021
PPC sponsor
Sasfin Capital
A member of the Sasfin Group
2
Date: 20-09-2021 07:30:00
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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1892/000667/06)
ISIN: ZAE000170049
Share Code: PPC ZSE code: PPC
(“PPC” or the “Company” or the “Group”)
FULFILLMENT OF CONDITIONS PRECEDENT IN RELATION TO THE DISPOSAL OF PPC LIME
LIMITED AND PPC AGGREGATE QUARRIES BOTSWANA PROPRIETARY LIMITED
1. INTRODUCTION
Shareholders of the Company (“Shareholders”) are referred to the announcement released on the
Stock Exchange News Service (“SENS”) on 3 May 2021 titled ‘PPC Disposal of PPC Lime Limited and
Withdrawal of Cautionary Announcement’ and the announcement released on SENS on 8 June 2021
titled ‘Trading Statement and Sale of PPC Aggregate Quarries Botswana Proprietary Limited’ wherein
Shareholders were advised of the sale of PPC Lime Limited (“PPC Lime Disposal”) and PPC Aggregate
Quarries Botswana Proprietary Limited (“PPC AQB Disposal”).
2. PPC LIME DISPOSAL
In terms of the PPC Lime Disposal, PPC South Africa Holdings Proprietary Limited, a wholly-owned
subsidiary of the Company, entered into transaction agreements with Kgatelopele Lime Proprietary
Limited (“Kgatelopele Lime”), to dispose of the entire issued share capital of PPC Lime (the
“Divestment”). The Divestment was subject to the fulfilment of, inter alia, the following conditions
precedent (“Divestment Conditions”) by 31 December 2021:
- Approval of the Divestment by the relevant competition authorities in terms of the Competition
Act, Act 89 of 1998;
- Consent of the Minister of Mineral Resources and Energy in terms of section 11 of the Minerals
and Petroleum Resources Development Act, Act 28 of 2002;
- Written proof being obtained to the satisfaction of PPC and the Department of Mineral Resources
and Energy that Kgatelopele has made financial provision in respect of the rehabilitation liability
of PPC Lime; and
- Exemption being granted in terms of section 119(6) of the Companies Act, Act 71 of 2008 from
the application of Parts B and C of Chapter 5 of the Companies Act and the Takeover Regulations
with respect to the implementation of the Divestment.
1
3. PPC AQB DISPOSAL
In terms of the PPC AQB Disposal a binding sale and purchase agreement was entered into between
PPC Botswana Proprietary Limited (a wholly-owned subsidiary of PPC) and a construction and mining
company in Botswana, to sell PPC's 100% shareholding in PPC AQB.
4. FINALISATION
The board of directors of PPC is pleased to announce that the last of the Divestment Conditions was
met on 17 September 2021 and the last of the conditions precedent relating to the sale of PPC AQB
was met on 15 September 2021.
The net proceeds from the sale of PPC Lime and the proceeds from the sale of PPC AQB, both of which
are subject to adjustment, will be applied to de-gear PPC’s South African balance sheet.
5. PPC RESTRUCTURING AND REFINANCE PROJECT
The completion of the sale of PPC Lime and PPC AQB is an important and positive step in the ongoing
capital restructuring and refinancing project. Shareholders are advised that the Company expects to
release a further update on the restructuring and refinancing project as well as a trading update on or
about 29 September 2021.
Sandton
20 September 2021
PPC sponsor
Sasfin Capital
A member of the Sasfin Group
2
Date: 20-09-2021 07:30:00
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.
Results of Annual General Meeting and changes to the board of directors
Results of Annual General Meeting and changes to the board of directors
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Results of Annual General Meeting (“AGM”) and changes to the Board of Directors
Shareholders of PPC (“Shareholders”) are hereby advised that all proposed ordinary and
special resolutions contained in the Notice of the AGM dated 16 July 2021 and tabled at
the Company’s AGM held on Friday, 27 August 2021, were passed by the requisite majority
of votes cast by Shareholders, as reported below:
Resolutions proposed Number of Shares Percentage Percentage Percentage
shares voted** voted* For** Against** Abstained**
Ordinary Resolution 953 918 148 59,88% 99.97% 0.03% 0.11%
1.1 – Election of Ms
Kunyalala Maphisa
Ordinary Resolution 953 918 148 59.88% 99.98% 0.02% 0.11%
1.2
Election of Ms Brenda
Berlin
Ordinary Resolution 944 331 741 59.28% 99.71% 0.29% 0.71%
2.1
Re-election of Ms
Nonkululeko Gobodo
Ordinary Resolution 953 918 148 59,88% 99,74% 0,26% 0,11%
2.2
Re-election of Mr
Charles Naude
Ordinary Resolution 944 331 741 59,28% 99,98% 0,02% 0,71%
3.1
Appointment to audit
committee – Ms
Nonkululeko Gobodo
Ordinary Resolution 953 918 148 59,88% 97,76% 2,24% 0,11%
3.2
Appointment to the
audit committee – Ms
Noluvuyo Mkhondo
Ordinary Resolution 953 918 148 59,88% 100,00% 0,00% 0,11%
3.3
Appointment to audit
committee – Mr Mark
Richard Thompson
Ordinary Resolution 4 945 029 311 59,32% 92,88% 7,12% 0,67%
Re-appointment of
external Auditor
Deloitte & Touche
Ordinary Resolution 953 907 628 59,88% 85,67% 14,33% 0,11%
5.1
Non-binding advisory
vote – Remuneration
Policy
Ordinary Resolution 953 905 628 59,88% 89,78% 10,22% 0,11%
5.2
Non-binding advisory
vote – Remuneration
Implementation Report
Ordinary Resolution 6 952 599 215 59,79% 99,96% 0,04% 0,19%
Authority to
implement resolutions
Special Resolutions 953 907 528 59,88% 99,22% 0,78% 0,11%
1.1
Financial Assistance
– Section 44
Special Resolutions 953 907 528 59,88% 97,80% 2,20% 0,11%
1.2
Financial Assistance
– Section 45
Special Resolution 953 881 123 59,88% 95,69% 4,31% 0,11%
2.1
Remuneration – Board
Chairman
Special Resolution 953 881 123 59,88% 99,93% 0,07% 0,11%
2.2
Remuneration – Non-
Executive director
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.3
Audit & Risk
Committee Chairman
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.4
Audit & Risk
Committee – Member
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.5
Social and Ethics
Committee – Chairman
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.6
Social and Ethics
Committee – Member
Special Resolution 953 896 048 59,88% 99,49% 0,51% 0,11%
2.7
Nominations and
Remuneration
Committee – Chairman
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.8
Nominations and
Remuneration
Committee – Member
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.9
Remuneration
Committee – Chairman
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.10
Remuneration
Committee – Member
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.11
Investment Committee
– Chairman
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.12
Investment committee
– Member
Special Resolution 953 886 930 59,88% 98,30% 1,70% 0,11%
2.13 Special meetings
– Chairman
Special Resolution 953 886 930 59,88% 98,30% 1,70% 0,11%
2.14
Special meetings –
Member
Special Resolution 3 951 527 534 59,73% 99,98% 0,02% 0,26%
General authority to
repurchase shares
* As a percentage to the total number of PPC ordinary shares in issue
** As a percentage to the total number of shares voted at the AGM
Changes to the Board of Directors of PPC (“Board”)
In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited,
Shareholders are advised that Mr Todd Moyo has retired as a non-executive director of
PPC at the AGM. Mr Moyo served on the Nominations and Remuneration committees. The
Board has commenced the process of appointing a replacement for Mr Moyo, the outcome of
which will be announced in due course. The Board would like to thank Mr Moyo for his
valuable contribution to the Company and wishes him all the best in his future
endeavours.
Furthermore, the Board wishes to inform Shareholders that it has resolved to
consolidate its Remuneration Committee and Nominations Committee into a single
committee. The consolidation will be effective on 1 October 2021 and the members of the
combined Remuneration and Nominations Committee will comprise the following non-
executive directors:
Nono Mkhondo (Chair);
Jabu Moleketi; and
Charles Naude.
Kevin Ross
Company Secretary
27 August 2021
Sponsor:
Sasfin Capital, a member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 27-08-2021 05:42:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Results of Annual General Meeting (“AGM”) and changes to the Board of Directors
Shareholders of PPC (“Shareholders”) are hereby advised that all proposed ordinary and
special resolutions contained in the Notice of the AGM dated 16 July 2021 and tabled at
the Company’s AGM held on Friday, 27 August 2021, were passed by the requisite majority
of votes cast by Shareholders, as reported below:
Resolutions proposed Number of Shares Percentage Percentage Percentage
shares voted** voted* For** Against** Abstained**
Ordinary Resolution 953 918 148 59,88% 99.97% 0.03% 0.11%
1.1 – Election of Ms
Kunyalala Maphisa
Ordinary Resolution 953 918 148 59.88% 99.98% 0.02% 0.11%
1.2
Election of Ms Brenda
Berlin
Ordinary Resolution 944 331 741 59.28% 99.71% 0.29% 0.71%
2.1
Re-election of Ms
Nonkululeko Gobodo
Ordinary Resolution 953 918 148 59,88% 99,74% 0,26% 0,11%
2.2
Re-election of Mr
Charles Naude
Ordinary Resolution 944 331 741 59,28% 99,98% 0,02% 0,71%
3.1
Appointment to audit
committee – Ms
Nonkululeko Gobodo
Ordinary Resolution 953 918 148 59,88% 97,76% 2,24% 0,11%
3.2
Appointment to the
audit committee – Ms
Noluvuyo Mkhondo
Ordinary Resolution 953 918 148 59,88% 100,00% 0,00% 0,11%
3.3
Appointment to audit
committee – Mr Mark
Richard Thompson
Ordinary Resolution 4 945 029 311 59,32% 92,88% 7,12% 0,67%
Re-appointment of
external Auditor
Deloitte & Touche
Ordinary Resolution 953 907 628 59,88% 85,67% 14,33% 0,11%
5.1
Non-binding advisory
vote – Remuneration
Policy
Ordinary Resolution 953 905 628 59,88% 89,78% 10,22% 0,11%
5.2
Non-binding advisory
vote – Remuneration
Implementation Report
Ordinary Resolution 6 952 599 215 59,79% 99,96% 0,04% 0,19%
Authority to
implement resolutions
Special Resolutions 953 907 528 59,88% 99,22% 0,78% 0,11%
1.1
Financial Assistance
– Section 44
Special Resolutions 953 907 528 59,88% 97,80% 2,20% 0,11%
1.2
Financial Assistance
– Section 45
Special Resolution 953 881 123 59,88% 95,69% 4,31% 0,11%
2.1
Remuneration – Board
Chairman
Special Resolution 953 881 123 59,88% 99,93% 0,07% 0,11%
2.2
Remuneration – Non-
Executive director
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.3
Audit & Risk
Committee Chairman
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.4
Audit & Risk
Committee – Member
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.5
Social and Ethics
Committee – Chairman
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.6
Social and Ethics
Committee – Member
Special Resolution 953 896 048 59,88% 99,49% 0,51% 0,11%
2.7
Nominations and
Remuneration
Committee – Chairman
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.8
Nominations and
Remuneration
Committee – Member
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.9
Remuneration
Committee – Chairman
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.10
Remuneration
Committee – Member
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.11
Investment Committee
– Chairman
Special Resolution 953 896 048 59,88% 99,98% 0,02% 0,11%
2.12
Investment committee
– Member
Special Resolution 953 886 930 59,88% 98,30% 1,70% 0,11%
2.13 Special meetings
– Chairman
Special Resolution 953 886 930 59,88% 98,30% 1,70% 0,11%
2.14
Special meetings –
Member
Special Resolution 3 951 527 534 59,73% 99,98% 0,02% 0,26%
General authority to
repurchase shares
* As a percentage to the total number of PPC ordinary shares in issue
** As a percentage to the total number of shares voted at the AGM
Changes to the Board of Directors of PPC (“Board”)
In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited,
Shareholders are advised that Mr Todd Moyo has retired as a non-executive director of
PPC at the AGM. Mr Moyo served on the Nominations and Remuneration committees. The
Board has commenced the process of appointing a replacement for Mr Moyo, the outcome of
which will be announced in due course. The Board would like to thank Mr Moyo for his
valuable contribution to the Company and wishes him all the best in his future
endeavours.
Furthermore, the Board wishes to inform Shareholders that it has resolved to
consolidate its Remuneration Committee and Nominations Committee into a single
committee. The consolidation will be effective on 1 October 2021 and the members of the
combined Remuneration and Nominations Committee will comprise the following non-
executive directors:
Nono Mkhondo (Chair);
Jabu Moleketi; and
Charles Naude.
Kevin Ross
Company Secretary
27 August 2021
Sponsor:
Sasfin Capital, a member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 27-08-2021 05:42:00
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.
Correction announcement Forfeitable Share Award
Correction announcement Forfeitable Share Award
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or “Group”)
CORRECTION ANNOUNCEMENT
ALLOCATION OF FORFEITABLE SHARES
In compliance with the requirements of paragraphs 3.63 of the JSE Limited Listings
Requirements, the following grants and acceptances of forfeitable shares in terms
of the company´s Forfeitable Share Plan (FSP) should be noted:
Executive director: RC van Wijnen
Designation: Chief Executive Officer
Number of FSP shares awarded: 2 921 494 ordinary shares
Price at which shares were awarded: R3.9346 per share
Value: R11 494 911.95
Date award approved: Approved by the Company’s Remuneration
Committee on 5 July 2021.
Date award accepted: 11 August 2021
Vesting date: 31 March 2024
Nature of interests: Direct beneficial
Nature of transaction: off-market transaction
Clearance obtained: Yes
Sandton
13 August 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 13-08-2021 05:45:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or “Group”)
CORRECTION ANNOUNCEMENT
ALLOCATION OF FORFEITABLE SHARES
In compliance with the requirements of paragraphs 3.63 of the JSE Limited Listings
Requirements, the following grants and acceptances of forfeitable shares in terms
of the company´s Forfeitable Share Plan (FSP) should be noted:
Executive director: RC van Wijnen
Designation: Chief Executive Officer
Number of FSP shares awarded: 2 921 494 ordinary shares
Price at which shares were awarded: R3.9346 per share
Value: R11 494 911.95
Date award approved: Approved by the Company’s Remuneration
Committee on 5 July 2021.
Date award accepted: 11 August 2021
Vesting date: 31 March 2024
Nature of interests: Direct beneficial
Nature of transaction: off-market transaction
Clearance obtained: Yes
Sandton
13 August 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 13-08-2021 05:45:00
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.
CANCELLATION OF S449876 Forfeitable share plan award
CANCELLATION OF S449876 Forfeitable share plan award
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or “Group”)
ALLOCATION OF FORFEITABLE SHARES
In compliance with the requirements of paragraphs 3.63 of the JSE Limited Listings
Requirements, the following grants and acceptances of forfeitable shares in terms
of the company´s Forfeitable Share Plan (FSP) should be noted:
Executive director: RC van Wijnen
Designation: Chief Executive Officer
Number of FSP shares awarded: 2 921 494 ordinary shares
Price at which shares were awarded: R3.9346 per share
Value: R11 494 911.95
Date award approved: Approved by the Company’s Remuneration
Committee on 5 July 2021.
Vesting date: 31 March 2024
Nature of interests: Direct beneficial
Nature of transaction: off-market transaction
Clearance obtained: Yes
Sandton
12 August 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 13-08-2021 05:44:59
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or “Group”)
ALLOCATION OF FORFEITABLE SHARES
In compliance with the requirements of paragraphs 3.63 of the JSE Limited Listings
Requirements, the following grants and acceptances of forfeitable shares in terms
of the company´s Forfeitable Share Plan (FSP) should be noted:
Executive director: RC van Wijnen
Designation: Chief Executive Officer
Number of FSP shares awarded: 2 921 494 ordinary shares
Price at which shares were awarded: R3.9346 per share
Value: R11 494 911.95
Date award approved: Approved by the Company’s Remuneration
Committee on 5 July 2021.
Vesting date: 31 March 2024
Nature of interests: Direct beneficial
Nature of transaction: off-market transaction
Clearance obtained: Yes
Sandton
12 August 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 13-08-2021 05:44:59
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.
Forfeitable share plan award
Forfeitable share plan award
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or “Group”)
ALLOCATION OF FORFEITABLE SHARES
In compliance with the requirements of paragraphs 3.63 of the JSE Limited Listings
Requirements, the following grants and acceptances of forfeitable shares in terms
of the company´s Forfeitable Share Plan (FSP) should be noted:
Executive director: RC van Wijnen
Designation: Chief Executive Officer
Number of FSP shares awarded: 2 921 494 ordinary shares
Price at which shares were awarded: R3.9346 per share
Value: R11 494 911.95
Date award approved: Approved by the Company’s Remuneration
Committee on 5 July 2021.
Vesting date: 31 March 2024
Nature of interests: Direct beneficial
Nature of transaction: off-market transaction
Clearance obtained: Yes
Sandton
12 August 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 12-08-2021 09:11:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or “Group”)
ALLOCATION OF FORFEITABLE SHARES
In compliance with the requirements of paragraphs 3.63 of the JSE Limited Listings
Requirements, the following grants and acceptances of forfeitable shares in terms
of the company´s Forfeitable Share Plan (FSP) should be noted:
Executive director: RC van Wijnen
Designation: Chief Executive Officer
Number of FSP shares awarded: 2 921 494 ordinary shares
Price at which shares were awarded: R3.9346 per share
Value: R11 494 911.95
Date award approved: Approved by the Company’s Remuneration
Committee on 5 July 2021.
Vesting date: 31 March 2024
Nature of interests: Direct beneficial
Nature of transaction: off-market transaction
Clearance obtained: Yes
Sandton
12 August 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 12-08-2021 09:11:00
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.
Distribution of IAR and notice of AGM
Distribution of IAR and notice of AGM
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
NOTICE OF DISTRIBUTION OF INTEGRATED ANNUAL REPORT AND NOTICE OF ANNUAL GENERAL
MEETING FOR THE YEAR ENDED 31 MARCH 2021
Shareholders of the Company (“Shareholders”) are hereby advised that the Notice of
Annual General Meeting (“AGM”) which includes Summarised Consolidated Financial
Statements of the Company for the year ended 31 March 2021, has been published and
distributed to Shareholders today, Friday, 16 July 2021.
NOTICE OF AGM
Notice is hereby given that the next AGM of Shareholders will be held entirely
by electronic communication, on Friday, 27 August 2021 at 12:00, to consider
and, if deemed fit, to pass with or without modification all of the ordinary and
special resolutions set out in the notice of AGM distributed to Shareholders
today.
2021
Record date to receive the notice of
the AGM Friday, 9 July
Date of posting the Notice of AGM
Meeting Friday, 16 July
Last date to trade to be eligible to
vote Tuesday, 17 August
Record date to be eligible to attend,
participate and vote at the AGM Friday, 20 August
Meeting
For administrative purposes,
preferable date by which forms of Wednesday, 25 August
proxy for the AGM are requested to be
lodged, by 12h00 on
Annual General Meeting at 12h00 Friday, 27 August
Results of AGM published on SENS on Friday, 27 August
Notes:
1. The above dates and times are subject to amendment. Any such amendment
will be released via SENS.
2. All times given are local times in South Africa.
3. Any forms of proxy not delivered to the meeting secretaries by 12:00 on
Wednesday, 25 August 2021 may be handed to the chair of the AGM
immediately before the appointed proxy exercises any of the
shareholder’s rights at the AGM.
Electronic copies of the Integrated Annual Report (“IAR”) together with all
supplementary reports referenced therein will be available on the Company´s
website, at
https://www.ppc.africa/investors-relations/reports/?t=year-end and
the notice of AGM will be available on the Company’s website, at
https://www.ppc.africa/investors-relations/reports/?t=agm-notices
as from today, 16 July 2021. Copies of the IAR and AGM notice may also be
requested from the company secretary at kevin.ross@ppc.co.za.
Sandton
16 July 2021
Sponsor
Sasfin Capital,
a member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 16-07-2021 08:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
NOTICE OF DISTRIBUTION OF INTEGRATED ANNUAL REPORT AND NOTICE OF ANNUAL GENERAL
MEETING FOR THE YEAR ENDED 31 MARCH 2021
Shareholders of the Company (“Shareholders”) are hereby advised that the Notice of
Annual General Meeting (“AGM”) which includes Summarised Consolidated Financial
Statements of the Company for the year ended 31 March 2021, has been published and
distributed to Shareholders today, Friday, 16 July 2021.
NOTICE OF AGM
Notice is hereby given that the next AGM of Shareholders will be held entirely
by electronic communication, on Friday, 27 August 2021 at 12:00, to consider
and, if deemed fit, to pass with or without modification all of the ordinary and
special resolutions set out in the notice of AGM distributed to Shareholders
today.
2021
Record date to receive the notice of
the AGM Friday, 9 July
Date of posting the Notice of AGM
Meeting Friday, 16 July
Last date to trade to be eligible to
vote Tuesday, 17 August
Record date to be eligible to attend,
participate and vote at the AGM Friday, 20 August
Meeting
For administrative purposes,
preferable date by which forms of Wednesday, 25 August
proxy for the AGM are requested to be
lodged, by 12h00 on
Annual General Meeting at 12h00 Friday, 27 August
Results of AGM published on SENS on Friday, 27 August
Notes:
1. The above dates and times are subject to amendment. Any such amendment
will be released via SENS.
2. All times given are local times in South Africa.
3. Any forms of proxy not delivered to the meeting secretaries by 12:00 on
Wednesday, 25 August 2021 may be handed to the chair of the AGM
immediately before the appointed proxy exercises any of the
shareholder’s rights at the AGM.
Electronic copies of the Integrated Annual Report (“IAR”) together with all
supplementary reports referenced therein will be available on the Company´s
website, at
https://www.ppc.africa/investors-relations/reports/?t=year-end and
the notice of AGM will be available on the Company’s website, at
https://www.ppc.africa/investors-relations/reports/?t=agm-notices
as from today, 16 July 2021. Copies of the IAR and AGM notice may also be
requested from the company secretary at kevin.ross@ppc.co.za.
Sandton
16 July 2021
Sponsor
Sasfin Capital,
a member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 16-07-2021 08:00:00
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.
Changes to the Board of Directors
Changes to the Board of Directors
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or “Group”)
CHANGE TO THE BOARD OF DIRECTORS
In accordance with paragraph 3.59(c) of the JSE Limited Listings Requirements, the
board of directors of the Company (“the Board”) wishes to advise shareholders of
following change to the Board, with effect from 1 July 2021:
RE-APPOINTMENT OF ANTONY BALL AS NON-EXECUTIVE DIRECTOR
During or about June 2020 the Board resolved to appoint Mr. Antony Ball (“Antony”) as
an Executive Director with effect from 1 July 2020, to supervise, manage and assist
the Company to achieve certain key milestones regarding the restructuring and
refinancing of the Group (the “Project”).
With reference to PPC’s recent SENS announcements on, inter alia, 31 March and 3 May
2021 regarding the progress made in the achievement of the key milestones and
considering that the Company is now in the implementation phase of the Project, Antony
will step down as Executive Director and resume his duties as Non-Executive director
of the Company.
Sandton
2 July 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 02-07-2021 02:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or “Group”)
CHANGE TO THE BOARD OF DIRECTORS
In accordance with paragraph 3.59(c) of the JSE Limited Listings Requirements, the
board of directors of the Company (“the Board”) wishes to advise shareholders of
following change to the Board, with effect from 1 July 2021:
RE-APPOINTMENT OF ANTONY BALL AS NON-EXECUTIVE DIRECTOR
During or about June 2020 the Board resolved to appoint Mr. Antony Ball (“Antony”) as
an Executive Director with effect from 1 July 2020, to supervise, manage and assist
the Company to achieve certain key milestones regarding the restructuring and
refinancing of the Group (the “Project”).
With reference to PPC’s recent SENS announcements on, inter alia, 31 March and 3 May
2021 regarding the progress made in the achievement of the key milestones and
considering that the Company is now in the implementation phase of the Project, Antony
will step down as Executive Director and resume his duties as Non-Executive director
of the Company.
Sandton
2 July 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 02-07-2021 02:30:00
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.
Dealing in securities by a Director
Dealing in securities by a Director
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
DEALING IN SECURITIES BY A DIRECTOR
In compliance with the JSE Limited Listings Requirements, the following
information is disclosed:
Director : Mr R van Wijnen
Title : Executive Director
Date of transaction : 23 June 2021
Number of securities : 320,000
Nature of transaction : On-market purchase of securities
Class of securities : Ordinary shares
Share price : R 3.290892
Value of transaction : R 1,053,085.44
Nature of interest : Direct Beneficial
Clearance to deal obtained : Yes
Sandton
25 June 2021
Sponsor
Sasfin Capital
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 25-06-2021 10:00:00
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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
DEALING IN SECURITIES BY A DIRECTOR
In compliance with the JSE Limited Listings Requirements, the following
information is disclosed:
Director : Mr R van Wijnen
Title : Executive Director
Date of transaction : 23 June 2021
Number of securities : 320,000
Nature of transaction : On-market purchase of securities
Class of securities : Ordinary shares
Share price : R 3.290892
Value of transaction : R 1,053,085.44
Nature of interest : Direct Beneficial
Clearance to deal obtained : Yes
Sandton
25 June 2021
Sponsor
Sasfin Capital
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 25-06-2021 10:00:00
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.
2021/06/21
Short Form Announcement Audited Consolidated Annual Financial Statements 2021 and B-BBEE Certificate
View ArticleShort Form Announcement Audited Consolidated Annual Financial Statements 2021 and B-BBEE Certificate
Short Form Announcement Audited Consolidated Annual Financial Statements 2021 and B-BBEE Certificate
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the company” or “the group”)
SHORT FORM ANNOUNCEMENT
AUDITED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
B-BBEE CERTIFICATE
Shareholders are advised that PPC has published their Audited Consolidated Annual Financial Statements for the
year ended 31 March 2021 (“2021 AFS”).
SALIENT FEATURES (CONTINUING OPERATIONS)
Group revenue: R8 938 million (March 2020:R8 671 million)
Group EBITDA: R1 598 million (March 2020: R1 381 million)
Earnings per share: 65 cents (March 2020: 43 cents loss)
Headline earnings per share: 3 cents (March 2020: 54 cents)
Group free cash flow: R649 million (March 2020: R289 million outflow)
The group did not declare a dividend in the current or previous period
Roland van Wijnen, CEO, said:
My gratitude goes to all my colleagues at PPC. They have worked tirelessly under very stringent health and safety
protocols to keep PPC going and sustain our purpose of empowering people to experience a better quality of life.
Despite the difficult trading conditions in most of our markets, our businesses have benefited from a recovery in
cement demand, resulting in improved financial performance. The strategic repositioning of PPC as a leading
cementitious player is progressing well, and we will redouble our efforts in the new financial year. We also achieved
significant milestones in our capital restructuring and refinancing project, which remains a priority for PPC. So far, we
have concluded an agreement with PPC Barnet's lenders, which terminates their right to recourse to PPC. We signed
agreements for the sale of PPC Lime and our aggregates business in Botswana. We also agreed with our South African
lending partners to defer the equity capital raise in South Africa from March 2021 to September 2021. We continue
to engage with our lenders to find the most economically efficient way to recapitalise the South African business.
2021 AFS
The group has, in accordance with IFRS 5 - Non-current assets held for sale, accounted for PPC Lime, Botswana
Aggregates and PPC Barnet as discontinued operations. Accordingly, the assets, liabilities and profit and loss are
reported separately in the financial statements for the year ended 31 March 2021.
The following results commentary reflects an analysis of the group’s continuing operations unless specifically stated.
The group's financial performance improved on the prior year despite the loss of sales due to the various lockdown
restrictions imposed by the relevant authorities in response to the COVID-19 pandemic. Cement sales in South Africa
benefited from solid retail demand in the inland region, while the coastal regions experienced a lagged recovery in
demand. In Rwanda, CIMERWA also experienced strong cement sales due to the roll-out of government projects,
retail demand and exports to the DRC. Although trading conditions in Zimbabwe were characterised by high inflation
and a shortage of foreign currency, PPC Zimbabwe grew revenues and EBITDA in functional currency. However, a 75%
devaluation in the Zimbabwean dollar against the South African rand resulted in a reduced contribution to the
group's profitability. The materials business could not recover from the impact of the lockdowns, although it
experienced increased demand in some market segments.
Group revenue increased by 3% to R8 938 million (March 2020: R8 671 million) due to the recovery in cement sales.
Excluding Zimbabwe, group revenue increased by 7%. Group earnings before interest, tax, depreciation and
amortisation ("EBITDA") increased by 16% to R1 598 million (March 2020: R1 381 million) with an EBITDA margin of
17.9% (March 2020: 15.9%). EBITDA benefited from volume growth and stringent cost control. Excluding PPC
Zimbabwe, group's EBITDA from continuing operations increased by 66%. Finance costs decreased by 19% to R283
million (March 2020: R349 million) due to lower average borrowings.
Earnings per share ("EPS") for the period for continuing operations increased to 65 cents (March 2020: 43 cents loss)
while headline earnings per share for continuing operations ("HEPS") reduced to 3 cents (March 2020: 54 cents).
Operating profit increased by 75% year-on-year from R600 million to R1 051 million. Headline earnings from
continuing operations, however, decreased from R787 million to R77million, due to the impact of the following non-
cash pre-tax items impacted headline earnings:
• Fair value adjustments and foreign exchange movements resulted in a loss of R376 million (March 2020:
R151 million gain), mainly due to strengthening of the South African rand against the US dollar during the
year. The South African rand depreciated against the US dollar in the prior year.
• A profit of R251 million in the previous year relating to the DRC put option.
• A net fair value gain on the Zimbabwe financial asset of R256 million (2020: R7 million).
• A net fair value loss on the Zimbabwe blocked funds of R17 million (2020: R258 million).
• Accounting for Zimbabwe in terms of IAS 29 - Financial reporting in hyperinflationary economies, resulted
in a net monetary loss of R200 million (March 2020: R651 million gain).
Cash available from operations amounted to R1 022 million (March 2020: R273 million). Cash generation benefited
from improvements in EBITDA, reduction in working capital absorption, and lower finance cost paid. Cash
generation and preservation is a key performance measure for PPC.
Gross debt amounted to R2 628 million on 31 March 2021 (March 2020: R5 800 million). The R3 172 million decline
in gross debt includes R2 482 million relating to the DRC transferred to liabilities associated with assets held for sale
and disposal groups.
Outlook
Despite the recovery in cement demand in most of its markets, PPC is mindful of the prevailing uncertainties around
the COVID-19 pandemic and its impact on economic activity. PPC will remain focused on improving cost
competitiveness and cash generation. PPC will take the necessary strategic and operational measures to ensure that
it can continue to serve its customers, protect its employees and implement strategic initiatives to ensure financial
sustainability through all demand cycles.
Audit opinion
The Audited Consolidated Annual Financial Statements were audited by Deloitte & Touche, who expressed an
unmodified audit opinion in terms of the International Standards on Auditing, highlighting key audit matters and
including a paragraph on material uncertainty relating to going concern in their report. A copy of the auditor´s report
on the Audited Consolidated Annual Financial Statements is available on the following link:
https://www.ppc.africa/investors-relations/reports/?t=final-results-reports.
The auditor’s report does not necessarily report on all of the information contained in this announcement, including
the Outlook. 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 the auditor’s report together with the accompanying financial
information from PPC’s website or registered office.
Short form announcement
This short form announcement of the Audited Consolidated Annual Financial Statements for the year ended 31
March 2021 is published in terms of a dispensation granted by the JSE Limited (“JSE”) from the requirement to publish
an abridged report. It is a summary of the financial information in the 2021 AFS and does not contain full or complete
details of the 2021 AFS. This short form announcement is the responsibility of the board of directors of PPC. The
information in this short form announcement has been extracted from the 2021 AFS, but is itself not audited.
Any investment decisions should be based on consideration of the 2021 AFS which, together with the audit report,
thereon has been published in accordance with section 3.46A(g) of the JSE Listings Requirements, as follows:
PPC’s’ website: https://www.ppc.africa/investors-relations/reports/?t=final-results-reports; and
JSE’s website: https://senspdf.jse.co.za/documents/2021/jse/isse/PPC/FY2021.pdf
Copies of the 2021 AFS are also available for inspection at the company's registered office (by appointment, observing
COVID-19 restrictions), and may be requested from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za) at
no charge, during office hours.
(A live and recorded video webcast of the results presentation will be held today at 11:00am and can be accessed
via this link: https://www.corpcam.com/PPC21062021)
B-BBEE certificate
PPC is pleased to notify Shareholders that the South African operations were rated under the Amended Construction
Sector Codes Gazetted 1 December 2017, and achieved a Level 4 rating. The Company´s B-BBEE certificate for the
period from October 2020 to October 2021, will be available on the Company´s website at www.ppc.africa.
Posting of notice of 2021 annual general meeting and publication of integrated annual report
Shareholders are hereby notified that the 2021 Notice of Annual General Meeting together with summarised 2021
AFS will be posted to shareholders on or before 30 July 2021. The Company’s Integrated Annual Report and the
Compliance Report in terms of section 13G(2) of the Broad-Based Black Economic Empowerment Amendment Act,
No 46 of 2013 will likewise be published on the Company’s website on or before 30 July 2021.
Sandton
21 June 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4249
Date: 21-06-2021 08:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the company” or “the group”)
SHORT FORM ANNOUNCEMENT
AUDITED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
B-BBEE CERTIFICATE
Shareholders are advised that PPC has published their Audited Consolidated Annual Financial Statements for the
year ended 31 March 2021 (“2021 AFS”).
SALIENT FEATURES (CONTINUING OPERATIONS)
Group revenue: R8 938 million (March 2020:R8 671 million)
Group EBITDA: R1 598 million (March 2020: R1 381 million)
Earnings per share: 65 cents (March 2020: 43 cents loss)
Headline earnings per share: 3 cents (March 2020: 54 cents)
Group free cash flow: R649 million (March 2020: R289 million outflow)
The group did not declare a dividend in the current or previous period
Roland van Wijnen, CEO, said:
My gratitude goes to all my colleagues at PPC. They have worked tirelessly under very stringent health and safety
protocols to keep PPC going and sustain our purpose of empowering people to experience a better quality of life.
Despite the difficult trading conditions in most of our markets, our businesses have benefited from a recovery in
cement demand, resulting in improved financial performance. The strategic repositioning of PPC as a leading
cementitious player is progressing well, and we will redouble our efforts in the new financial year. We also achieved
significant milestones in our capital restructuring and refinancing project, which remains a priority for PPC. So far, we
have concluded an agreement with PPC Barnet's lenders, which terminates their right to recourse to PPC. We signed
agreements for the sale of PPC Lime and our aggregates business in Botswana. We also agreed with our South African
lending partners to defer the equity capital raise in South Africa from March 2021 to September 2021. We continue
to engage with our lenders to find the most economically efficient way to recapitalise the South African business.
2021 AFS
The group has, in accordance with IFRS 5 - Non-current assets held for sale, accounted for PPC Lime, Botswana
Aggregates and PPC Barnet as discontinued operations. Accordingly, the assets, liabilities and profit and loss are
reported separately in the financial statements for the year ended 31 March 2021.
The following results commentary reflects an analysis of the group’s continuing operations unless specifically stated.
The group's financial performance improved on the prior year despite the loss of sales due to the various lockdown
restrictions imposed by the relevant authorities in response to the COVID-19 pandemic. Cement sales in South Africa
benefited from solid retail demand in the inland region, while the coastal regions experienced a lagged recovery in
demand. In Rwanda, CIMERWA also experienced strong cement sales due to the roll-out of government projects,
retail demand and exports to the DRC. Although trading conditions in Zimbabwe were characterised by high inflation
and a shortage of foreign currency, PPC Zimbabwe grew revenues and EBITDA in functional currency. However, a 75%
devaluation in the Zimbabwean dollar against the South African rand resulted in a reduced contribution to the
group's profitability. The materials business could not recover from the impact of the lockdowns, although it
experienced increased demand in some market segments.
Group revenue increased by 3% to R8 938 million (March 2020: R8 671 million) due to the recovery in cement sales.
Excluding Zimbabwe, group revenue increased by 7%. Group earnings before interest, tax, depreciation and
amortisation ("EBITDA") increased by 16% to R1 598 million (March 2020: R1 381 million) with an EBITDA margin of
17.9% (March 2020: 15.9%). EBITDA benefited from volume growth and stringent cost control. Excluding PPC
Zimbabwe, group's EBITDA from continuing operations increased by 66%. Finance costs decreased by 19% to R283
million (March 2020: R349 million) due to lower average borrowings.
Earnings per share ("EPS") for the period for continuing operations increased to 65 cents (March 2020: 43 cents loss)
while headline earnings per share for continuing operations ("HEPS") reduced to 3 cents (March 2020: 54 cents).
Operating profit increased by 75% year-on-year from R600 million to R1 051 million. Headline earnings from
continuing operations, however, decreased from R787 million to R77million, due to the impact of the following non-
cash pre-tax items impacted headline earnings:
• Fair value adjustments and foreign exchange movements resulted in a loss of R376 million (March 2020:
R151 million gain), mainly due to strengthening of the South African rand against the US dollar during the
year. The South African rand depreciated against the US dollar in the prior year.
• A profit of R251 million in the previous year relating to the DRC put option.
• A net fair value gain on the Zimbabwe financial asset of R256 million (2020: R7 million).
• A net fair value loss on the Zimbabwe blocked funds of R17 million (2020: R258 million).
• Accounting for Zimbabwe in terms of IAS 29 - Financial reporting in hyperinflationary economies, resulted
in a net monetary loss of R200 million (March 2020: R651 million gain).
Cash available from operations amounted to R1 022 million (March 2020: R273 million). Cash generation benefited
from improvements in EBITDA, reduction in working capital absorption, and lower finance cost paid. Cash
generation and preservation is a key performance measure for PPC.
Gross debt amounted to R2 628 million on 31 March 2021 (March 2020: R5 800 million). The R3 172 million decline
in gross debt includes R2 482 million relating to the DRC transferred to liabilities associated with assets held for sale
and disposal groups.
Outlook
Despite the recovery in cement demand in most of its markets, PPC is mindful of the prevailing uncertainties around
the COVID-19 pandemic and its impact on economic activity. PPC will remain focused on improving cost
competitiveness and cash generation. PPC will take the necessary strategic and operational measures to ensure that
it can continue to serve its customers, protect its employees and implement strategic initiatives to ensure financial
sustainability through all demand cycles.
Audit opinion
The Audited Consolidated Annual Financial Statements were audited by Deloitte & Touche, who expressed an
unmodified audit opinion in terms of the International Standards on Auditing, highlighting key audit matters and
including a paragraph on material uncertainty relating to going concern in their report. A copy of the auditor´s report
on the Audited Consolidated Annual Financial Statements is available on the following link:
https://www.ppc.africa/investors-relations/reports/?t=final-results-reports.
The auditor’s report does not necessarily report on all of the information contained in this announcement, including
the Outlook. 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 the auditor’s report together with the accompanying financial
information from PPC’s website or registered office.
Short form announcement
This short form announcement of the Audited Consolidated Annual Financial Statements for the year ended 31
March 2021 is published in terms of a dispensation granted by the JSE Limited (“JSE”) from the requirement to publish
an abridged report. It is a summary of the financial information in the 2021 AFS and does not contain full or complete
details of the 2021 AFS. This short form announcement is the responsibility of the board of directors of PPC. The
information in this short form announcement has been extracted from the 2021 AFS, but is itself not audited.
Any investment decisions should be based on consideration of the 2021 AFS which, together with the audit report,
thereon has been published in accordance with section 3.46A(g) of the JSE Listings Requirements, as follows:
PPC’s’ website: https://www.ppc.africa/investors-relations/reports/?t=final-results-reports; and
JSE’s website: https://senspdf.jse.co.za/documents/2021/jse/isse/PPC/FY2021.pdf
Copies of the 2021 AFS are also available for inspection at the company's registered office (by appointment, observing
COVID-19 restrictions), and may be requested from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za) at
no charge, during office hours.
(A live and recorded video webcast of the results presentation will be held today at 11:00am and can be accessed
via this link: https://www.corpcam.com/PPC21062021)
B-BBEE certificate
PPC is pleased to notify Shareholders that the South African operations were rated under the Amended Construction
Sector Codes Gazetted 1 December 2017, and achieved a Level 4 rating. The Company´s B-BBEE certificate for the
period from October 2020 to October 2021, will be available on the Company´s website at www.ppc.africa.
Posting of notice of 2021 annual general meeting and publication of integrated annual report
Shareholders are hereby notified that the 2021 Notice of Annual General Meeting together with summarised 2021
AFS will be posted to shareholders on or before 30 July 2021. The Company’s Integrated Annual Report and the
Compliance Report in terms of section 13G(2) of the Broad-Based Black Economic Empowerment Amendment Act,
No 46 of 2013 will likewise be published on the Company’s website on or before 30 July 2021.
Sandton
21 June 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4249
Date: 21-06-2021 08:00:00
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.
2021/06/09
Trading statement and Sale of PPC Aggregate Quarries Botswana Proprietary Limited
View ArticleTrading statement and Sale of PPC Aggregate Quarries Botswana Proprietary Limited
Trading statement and Sale of PPC Aggregate Quarries Botswana Proprietary Limited
PPC Limited
(Incorporated in the Republic of South Africa)
(Company Registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE Code: PPC ZSE Code: PPC
("PPC" or "Company" or "Group")
TRADING STATEMENT AND SALE OF PPC AGGREGATE QUARRIES BOTSWANA PROPRIETARY LIMITED
TRADING STATEMENT
PPC is currently finalising its results for the twelve months ended 31 March 2021 (“the period”). In
terms of the JSE Limited Listings Requirements ("JSE Listings Requirements"), shareholders are advised
that PPC is satisfied that a reasonable degree of certainty exists that the financial results for the period
to be reported upon will differ by at least 20% from that for the previous corresponding period, being
the twelve months ended 31 March 2020 ("the prior period").
In accordance with IFRS 5 - Non-current assets held for sale, the group has accounted for its PPC Lime,
Botswana Aggregates and PPC Barnet DRC businesses as discontinued operations. Accordingly, the
assets, liabilities and profit and loss are reported separately in the financial statements for the year
ended 31 March 2021.
Earnings before interest, tax, depreciation and amortisation ("EBITDA") for continuing operations is
expected to increase by between 14% and 18% compared to EBITDA in the prior period. This increase
is notwithstanding the Group incurring significant restructuring costs in the current financial year and
a full lock-down In April 2020 due to COVID with continuing COVID impacts thereafter.
Earnings per share ("EPS") for the period for continuing operations is expected to be between 63 cents
and 68 cents per share, an increase of between 247% and 258% from the 43 cents per share loss for
the prior period. Headline earnings per share for the period for continuing operations is expected to
be between zero cents and 5 cents per share, a decrease of between 91% and 100% compared to the
54 cents per share for the prior period.
EPS for the Group for the period is expected to be between 10 cents and 15 cents per share, an increase
of between 108% and 112% from the 124 cents per share loss for the prior period. Headline loss per
share for the period for the Group is expected to be between 13 cents per share and 18 cents per
share, a decrease of between 148% and 167% compared to the 27 cents per share profit for the prior
period.
Headline earnings is impacted by the impairments of property, plant and equipment raised at 31 March
2020, some of which are now reversed as at 31 March 2021.
Earnings and headline earnings for the 2021 financial year are impacted by hyperinflation accounting
in terms of IAS 29 - Financial accounting in hyperinflationary economies, resulting in a net monetary
loss of R200 million in the current year compared to a gain of R651 million in the prior period.
The financial information on which this Trading Statement is based is the responsibility of the directors
of the Company and has not been reviewed or reported on by the Group's independent auditor.
The Group's audited annual financial statements for the year ended 31 March 2021 are expected to
be released on or about 21 June 2021.
SALE OF PPC AGGREGATE QUARRIES BOTSWANA PROPRIETARY LTD
A binding sale and purchase agreement has been entered into between PPC Botswana Proprietary
Limited (a wholly-owned subsidiary of PPC) and a construction and mining company in Botswana, to
sell PPC's 100% shareholding in PPC Aggregate Quarries Botswana Proprietary Limited for a cash
purchase consideration of Pula 47.5 million (equivalent to approximately R60 million at an exchange
rate of R/Pula of 0.78). The purchaser is not a related party in terms of the JSE Listings Requirements
and the transaction is subject to customary conditions precedent for a transaction of this nature. PPC
expects that the conditions precedent will be met before 1 August 2021.
Sandton
9 June 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4249
Date: 09-06-2021 08:45:00
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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Company Registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE Code: PPC ZSE Code: PPC
("PPC" or "Company" or "Group")
TRADING STATEMENT AND SALE OF PPC AGGREGATE QUARRIES BOTSWANA PROPRIETARY LIMITED
TRADING STATEMENT
PPC is currently finalising its results for the twelve months ended 31 March 2021 (“the period”). In
terms of the JSE Limited Listings Requirements ("JSE Listings Requirements"), shareholders are advised
that PPC is satisfied that a reasonable degree of certainty exists that the financial results for the period
to be reported upon will differ by at least 20% from that for the previous corresponding period, being
the twelve months ended 31 March 2020 ("the prior period").
In accordance with IFRS 5 - Non-current assets held for sale, the group has accounted for its PPC Lime,
Botswana Aggregates and PPC Barnet DRC businesses as discontinued operations. Accordingly, the
assets, liabilities and profit and loss are reported separately in the financial statements for the year
ended 31 March 2021.
Earnings before interest, tax, depreciation and amortisation ("EBITDA") for continuing operations is
expected to increase by between 14% and 18% compared to EBITDA in the prior period. This increase
is notwithstanding the Group incurring significant restructuring costs in the current financial year and
a full lock-down In April 2020 due to COVID with continuing COVID impacts thereafter.
Earnings per share ("EPS") for the period for continuing operations is expected to be between 63 cents
and 68 cents per share, an increase of between 247% and 258% from the 43 cents per share loss for
the prior period. Headline earnings per share for the period for continuing operations is expected to
be between zero cents and 5 cents per share, a decrease of between 91% and 100% compared to the
54 cents per share for the prior period.
EPS for the Group for the period is expected to be between 10 cents and 15 cents per share, an increase
of between 108% and 112% from the 124 cents per share loss for the prior period. Headline loss per
share for the period for the Group is expected to be between 13 cents per share and 18 cents per
share, a decrease of between 148% and 167% compared to the 27 cents per share profit for the prior
period.
Headline earnings is impacted by the impairments of property, plant and equipment raised at 31 March
2020, some of which are now reversed as at 31 March 2021.
Earnings and headline earnings for the 2021 financial year are impacted by hyperinflation accounting
in terms of IAS 29 - Financial accounting in hyperinflationary economies, resulting in a net monetary
loss of R200 million in the current year compared to a gain of R651 million in the prior period.
The financial information on which this Trading Statement is based is the responsibility of the directors
of the Company and has not been reviewed or reported on by the Group's independent auditor.
The Group's audited annual financial statements for the year ended 31 March 2021 are expected to
be released on or about 21 June 2021.
SALE OF PPC AGGREGATE QUARRIES BOTSWANA PROPRIETARY LTD
A binding sale and purchase agreement has been entered into between PPC Botswana Proprietary
Limited (a wholly-owned subsidiary of PPC) and a construction and mining company in Botswana, to
sell PPC's 100% shareholding in PPC Aggregate Quarries Botswana Proprietary Limited for a cash
purchase consideration of Pula 47.5 million (equivalent to approximately R60 million at an exchange
rate of R/Pula of 0.78). The purchaser is not a related party in terms of the JSE Listings Requirements
and the transaction is subject to customary conditions precedent for a transaction of this nature. PPC
expects that the conditions precedent will be met before 1 August 2021.
Sandton
9 June 2021
Sponsor
Sasfin Capital
A member of the Sasfin Group
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4249
Date: 09-06-2021 08:45:00
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.
PPC Disposal of PPC Lime Limited and withdrawal of cautionary
PPC Disposal of PPC Lime Limited and withdrawal of cautionary
PPC Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1892/000667/06)
ISIN: ZAE000170049
Share Code: PPC ZSE code: PPC
(“PPC” or the “Company” or the “Group”)
PPC DISPOSAL OF PPC LIME LIMITED AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
1. INTRODUCTION
Shareholders of the Company (“Shareholders”) are referred to the announcement released on the
Stock Exchange News Service (“SENS”) on 31 March 2021 titled ‘Restructuring and refinancing project
update, operational update and renewal of cautionary announcement’ (the “Restructuring and
Refinancing Update Announcement”), wherein Shareholders were advised on the status of the
restructuring and refinancing project underway along with an update on the sale of PPC Lime Limited
(“PPC Lime”).
The board of directors of PPC is pleased to announce that on 2 May 2021, PPC South Africa Holdings
Proprietary Limited, a wholly-owned subsidiary of the Company (the “Vendor”), entered into transaction
agreements with Kgatelopele Lime Proprietary Limited (“Kgatelopele Lime” or the “Acquirer”), to
dispose of the entire issued share capital of PPC Lime for a consideration of R515 million (the
“Divestment”) on the terms and conditions set out in this announcement.
2. BACKGROUND INFORMATION ON THE ACQUIRER
Kgatelopele Lime is a private company, incorporated in accordance with the laws of South Africa, formed
for the purposes of the acquisition of PPC Lime. The shareholders of Kgatelopele Lime comprise:
- IMR Resources South Africa Proprietary Limited (“IMR SA”) – IMR SA is part of the IMR Group,
a privately held international minerals resources mining and trading company based in
Switzerland involved in global trading, mining, marketing and financing of a wide variety of bulk
commodities related to the iron and steel sector. Established in 2004, IMR has grown its global
footprint, generating c.US$3 billion in annual revenue while also expanding downstream/
upstream to own and manage a number of industrial and mining assets across several
geographical locations;
- Kolobe Nala Investment Lime Proprietary Limited (“KNI”) – KNI is a 100% black-owned, mining-
focused investment holding company. KNI is indirectly owned by Mr. Billy Mawasha. Mr. Mawasha
has extensive experience in the South African mining sector having held various executive
positions at AngloGold Ashanti, Kumba Iron Ore and Rio Tinto. Mr. Mawasha currently serves as
an independent non-executive Director of Murray & Roberts Limited and Metair Investments
Limited;
- HEX2M Energy Holdings Proprietary Limited (“HEX”) – HEX is a 100% black youth owned mining-
focused investment holding company wholly owned by Mr. Sizwe Mngomezulu. Together with Mr.
Mawasha, Mr. Mngomezulu owns and manages NPL Mining Solutions Proprietary Limited, a
chemical and minerals trading and beneficiation business; and
- JJJL Mining Proprietary Limited (“JJJL”) – JJJL is an entity that is 100% owned by Mr. Johannes
Claassen, the previous Chief Executive Officer of PPC. Mr. Claassen has an in-depth
understanding of PPC Lime and its operations.
Post conclusion of the Divestment, PPC Lime is expected to be 39% black-owned, being 29% owned
by strategic Black Economic Empowerment (“BEE”) investors, 5% owned by relevant PPC Lime
employees and 5% owned by host communities of PPC Lime, in accordance with the requirements of
the 2018 Mining Charter.
The Acquirer meets PPC’s requirements of concluding a transaction with a credible buyer with strong
mining, operational and financial capacity and BEE credentials that introduce limited risk to the execution
of the Divestment.
3. BACKGROUND INFORMATION ON PPC LIME
PPC Lime is a wholly-owned subsidiary of PPC which mines, manufactures and distributes reactive
lime, hard burnt lime, hydrated lime, burnt dolomitic lime and raw limestone. PPC Lime is a leading
supplier of these products to key industries, including iron and steel, alloys, gold, uranium and copper
mining, non-ferrous metals, sugar refining, water treatment and flue gas desulphurisation.
PPC Lime commenced operations in 1954 in Lime Acres, Northern Cape on an extensive reserve of
metallurgical quality limestone and dolomite. PPC Lime continues to mine out of two quarries, mining
dolomite and limestone respectively, along with the rotary kiln plant to manufacture the burnt product.
PPC Lime generated revenue and earnings before interest, taxes, depreciation and amortisation
(“EBITDA”) for the year ended 31 March 2020 of c.R858 million and c.R110 million respectively.
4. RATIONALE
As previously communicated to Shareholders, in CY2020, PPC embarked on a restructuring and
refinancing project to align the business with its revised strategy. In terms of the revised strategy, PPC
Lime was identified as a non-core operation to the Group and a structured sale process was initiated in
December 2020.
5. SALIENT TERMS OF THE DIVESTMENT
The agreed consideration for the Divestment is R515 million on a debt-free and cash-free basis
(“Consideration”). The Consideration is payable in cash and is subject to adjustment for net debt and
cash-like items and payment of “locked box” interest from 1 April 2021 until the closing date of the
Divestment, which is expected to be before the end of this year.
The rights, benefits and advantages of PPC Lime accrue to the Acquirer from 1 April 2021 in terms of a
“locked box structure”.
The Divestment includes contractual undertakings usual for a transaction of this nature, including those
relating to representation and warranties and interim-period undertakings. The Divestment includes a
reciprocal break fee of c.5% of the Consideration (c.R25 million) (the “Break Fee”). The Break Fee is
payable should the Acquirer or the Acquirer’s shareholders or the Vendor breach any of their respective
obligations and as a result of such breach, the conditions to the Divestment are not met and the
Divestment is consequently not implemented.
6. PROFITS ATTRIBUTABLE TO PPC LIME AND NET ASSETS
The attributable loss after tax of PPC Lime for the six months ended 30 September 2020 was R2m and
as at 30 September 2020 PPC Lime had a net asset value of R435 million, as reported in the Company’s
unaudited interim financial statements prepared in accordance with International Financial Reporting
Standards and published in December 2020.
The Company is satisfied with the quality of the unaudited interim financial statements from which this
financial information has been extracted.
7. CONDITIONS PRECEDENT AND EFFECTIVE DATE
The Divestment is subject to the fulfilment of, inter alia, the following conditions precedent by 31
December 2021:
- Approval of the Divestment by the relevant competition authorities in terms of the Competition
Act, Act 89 of 1998;
- Consent of the Minister of Mineral Resources and Energy in terms of section 11 of the Minerals
and Petroleum Resources Development Act, Act 28 of 2002;
- Written proof being obtained to the satisfaction of PPC and the Department of Mineral Resources
and Energy that the Acquirer has made financial provision in respect of the rehabilitation liability
of PPC Lime. In this regard, Shareholders are advised that the current rehabilitation trust funds
for PPC Lime held within the PPC Group in terms of section 37A of the Income Tax Act, Act 62 of
1968, will be transferred to PPC Lime as part of the Divestment; and
- Exemption being granted in terms of section 119(6) of the Companies Act, Act 71 of 2008 from
the application of Parts B and C of Chapter 5 of the Companies Act and the Takeover Regulations
with respect to the implementation of the Divestment.
The effective date of the Divestment will be the last day of the month in which the last of the conditions
precedent, detailed above, have been met. PPC view these conditions precedent as typical for a
transaction of this nature.
8. APPLICATION OF PROCEEDS
The proceeds from the sale of PPC Lime will be applied to de-gear PPC’s South African balance sheet.
As communicated in the Restructuring and Refinancing Update Announcement, PPC’s South African
lenders agreed to review the need for a capital raise by the Company of a minimum amount of
R750 million, to which it committed in August 2020, should the South African businesses continue to
de-gear towards a sustainable debt metric of c.2x EBITDA. The proceeds of the Divestment will assist
in achieving this key milestone.
9. CATEGORISATION OF THE DIVESTMENT
The Divestment constitutes a Category 2 transaction in terms of the JSE Limited Listings Requirements
and the Acquirer is not a related party.
10. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the Restructuring and Refinancing Update Announcement and are hereby
advised that having regard to the information contained in this announcement, caution is no longer
required to be exercised by Shareholders when dealing in the Company’s securities.
Sandton
3 May 2021
Financial adviser to PPC
Rand Merchant Bank (A division of FirstRand Bank Limited)
Legal adviser to PPC
Norton Rose Fulbright South Africa Inc
Legal adviser to Kgatelopele Lime
Bowmans
PPC sponsor
Sasfin Capital
A member of the Sasfin Group
Date: 03-05-2021 07:45:00
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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1892/000667/06)
ISIN: ZAE000170049
Share Code: PPC ZSE code: PPC
(“PPC” or the “Company” or the “Group”)
PPC DISPOSAL OF PPC LIME LIMITED AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
1. INTRODUCTION
Shareholders of the Company (“Shareholders”) are referred to the announcement released on the
Stock Exchange News Service (“SENS”) on 31 March 2021 titled ‘Restructuring and refinancing project
update, operational update and renewal of cautionary announcement’ (the “Restructuring and
Refinancing Update Announcement”), wherein Shareholders were advised on the status of the
restructuring and refinancing project underway along with an update on the sale of PPC Lime Limited
(“PPC Lime”).
The board of directors of PPC is pleased to announce that on 2 May 2021, PPC South Africa Holdings
Proprietary Limited, a wholly-owned subsidiary of the Company (the “Vendor”), entered into transaction
agreements with Kgatelopele Lime Proprietary Limited (“Kgatelopele Lime” or the “Acquirer”), to
dispose of the entire issued share capital of PPC Lime for a consideration of R515 million (the
“Divestment”) on the terms and conditions set out in this announcement.
2. BACKGROUND INFORMATION ON THE ACQUIRER
Kgatelopele Lime is a private company, incorporated in accordance with the laws of South Africa, formed
for the purposes of the acquisition of PPC Lime. The shareholders of Kgatelopele Lime comprise:
- IMR Resources South Africa Proprietary Limited (“IMR SA”) – IMR SA is part of the IMR Group,
a privately held international minerals resources mining and trading company based in
Switzerland involved in global trading, mining, marketing and financing of a wide variety of bulk
commodities related to the iron and steel sector. Established in 2004, IMR has grown its global
footprint, generating c.US$3 billion in annual revenue while also expanding downstream/
upstream to own and manage a number of industrial and mining assets across several
geographical locations;
- Kolobe Nala Investment Lime Proprietary Limited (“KNI”) – KNI is a 100% black-owned, mining-
focused investment holding company. KNI is indirectly owned by Mr. Billy Mawasha. Mr. Mawasha
has extensive experience in the South African mining sector having held various executive
positions at AngloGold Ashanti, Kumba Iron Ore and Rio Tinto. Mr. Mawasha currently serves as
an independent non-executive Director of Murray & Roberts Limited and Metair Investments
Limited;
- HEX2M Energy Holdings Proprietary Limited (“HEX”) – HEX is a 100% black youth owned mining-
focused investment holding company wholly owned by Mr. Sizwe Mngomezulu. Together with Mr.
Mawasha, Mr. Mngomezulu owns and manages NPL Mining Solutions Proprietary Limited, a
chemical and minerals trading and beneficiation business; and
- JJJL Mining Proprietary Limited (“JJJL”) – JJJL is an entity that is 100% owned by Mr. Johannes
Claassen, the previous Chief Executive Officer of PPC. Mr. Claassen has an in-depth
understanding of PPC Lime and its operations.
Post conclusion of the Divestment, PPC Lime is expected to be 39% black-owned, being 29% owned
by strategic Black Economic Empowerment (“BEE”) investors, 5% owned by relevant PPC Lime
employees and 5% owned by host communities of PPC Lime, in accordance with the requirements of
the 2018 Mining Charter.
The Acquirer meets PPC’s requirements of concluding a transaction with a credible buyer with strong
mining, operational and financial capacity and BEE credentials that introduce limited risk to the execution
of the Divestment.
3. BACKGROUND INFORMATION ON PPC LIME
PPC Lime is a wholly-owned subsidiary of PPC which mines, manufactures and distributes reactive
lime, hard burnt lime, hydrated lime, burnt dolomitic lime and raw limestone. PPC Lime is a leading
supplier of these products to key industries, including iron and steel, alloys, gold, uranium and copper
mining, non-ferrous metals, sugar refining, water treatment and flue gas desulphurisation.
PPC Lime commenced operations in 1954 in Lime Acres, Northern Cape on an extensive reserve of
metallurgical quality limestone and dolomite. PPC Lime continues to mine out of two quarries, mining
dolomite and limestone respectively, along with the rotary kiln plant to manufacture the burnt product.
PPC Lime generated revenue and earnings before interest, taxes, depreciation and amortisation
(“EBITDA”) for the year ended 31 March 2020 of c.R858 million and c.R110 million respectively.
4. RATIONALE
As previously communicated to Shareholders, in CY2020, PPC embarked on a restructuring and
refinancing project to align the business with its revised strategy. In terms of the revised strategy, PPC
Lime was identified as a non-core operation to the Group and a structured sale process was initiated in
December 2020.
5. SALIENT TERMS OF THE DIVESTMENT
The agreed consideration for the Divestment is R515 million on a debt-free and cash-free basis
(“Consideration”). The Consideration is payable in cash and is subject to adjustment for net debt and
cash-like items and payment of “locked box” interest from 1 April 2021 until the closing date of the
Divestment, which is expected to be before the end of this year.
The rights, benefits and advantages of PPC Lime accrue to the Acquirer from 1 April 2021 in terms of a
“locked box structure”.
The Divestment includes contractual undertakings usual for a transaction of this nature, including those
relating to representation and warranties and interim-period undertakings. The Divestment includes a
reciprocal break fee of c.5% of the Consideration (c.R25 million) (the “Break Fee”). The Break Fee is
payable should the Acquirer or the Acquirer’s shareholders or the Vendor breach any of their respective
obligations and as a result of such breach, the conditions to the Divestment are not met and the
Divestment is consequently not implemented.
6. PROFITS ATTRIBUTABLE TO PPC LIME AND NET ASSETS
The attributable loss after tax of PPC Lime for the six months ended 30 September 2020 was R2m and
as at 30 September 2020 PPC Lime had a net asset value of R435 million, as reported in the Company’s
unaudited interim financial statements prepared in accordance with International Financial Reporting
Standards and published in December 2020.
The Company is satisfied with the quality of the unaudited interim financial statements from which this
financial information has been extracted.
7. CONDITIONS PRECEDENT AND EFFECTIVE DATE
The Divestment is subject to the fulfilment of, inter alia, the following conditions precedent by 31
December 2021:
- Approval of the Divestment by the relevant competition authorities in terms of the Competition
Act, Act 89 of 1998;
- Consent of the Minister of Mineral Resources and Energy in terms of section 11 of the Minerals
and Petroleum Resources Development Act, Act 28 of 2002;
- Written proof being obtained to the satisfaction of PPC and the Department of Mineral Resources
and Energy that the Acquirer has made financial provision in respect of the rehabilitation liability
of PPC Lime. In this regard, Shareholders are advised that the current rehabilitation trust funds
for PPC Lime held within the PPC Group in terms of section 37A of the Income Tax Act, Act 62 of
1968, will be transferred to PPC Lime as part of the Divestment; and
- Exemption being granted in terms of section 119(6) of the Companies Act, Act 71 of 2008 from
the application of Parts B and C of Chapter 5 of the Companies Act and the Takeover Regulations
with respect to the implementation of the Divestment.
The effective date of the Divestment will be the last day of the month in which the last of the conditions
precedent, detailed above, have been met. PPC view these conditions precedent as typical for a
transaction of this nature.
8. APPLICATION OF PROCEEDS
The proceeds from the sale of PPC Lime will be applied to de-gear PPC’s South African balance sheet.
As communicated in the Restructuring and Refinancing Update Announcement, PPC’s South African
lenders agreed to review the need for a capital raise by the Company of a minimum amount of
R750 million, to which it committed in August 2020, should the South African businesses continue to
de-gear towards a sustainable debt metric of c.2x EBITDA. The proceeds of the Divestment will assist
in achieving this key milestone.
9. CATEGORISATION OF THE DIVESTMENT
The Divestment constitutes a Category 2 transaction in terms of the JSE Limited Listings Requirements
and the Acquirer is not a related party.
10. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the Restructuring and Refinancing Update Announcement and are hereby
advised that having regard to the information contained in this announcement, caution is no longer
required to be exercised by Shareholders when dealing in the Company’s securities.
Sandton
3 May 2021
Financial adviser to PPC
Rand Merchant Bank (A division of FirstRand Bank Limited)
Legal adviser to PPC
Norton Rose Fulbright South Africa Inc
Legal adviser to Kgatelopele Lime
Bowmans
PPC sponsor
Sasfin Capital
A member of the Sasfin Group
Date: 03-05-2021 07:45:00
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.
2021/03/31
Restructuring and refinancing project update, operation update and renewal of cautionary
View ArticleRestructuring and refinancing project update, operation update and renewal of cautionary
Restructuring and refinancing project update, operation update and renewal of cautionary
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
RESTRUCTURING AND REFINANCING PROJECT UPDATE, OPERATIONAL UPDATE AND
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders of the Company (“Shareholders”) are referred to the
previous announcements released on the Stock Exchange News Service,
including the Restructuring and Refinancing Project Update and Renewal
of Cautionary Announcement released on 25 February 2021, wherein they
were advised on the status of the restructuring and refinancing
project (“Project”) underway.
RESTRUCTURING AND REFINANCING PROJECT UPDATE
PPC is pleased to report that it has made significant progress in
implementing a sustainable capital structure and improving the
investment prospects of the Group, including de-risking the Group’s
balance sheet through the removal of its contingent obligations in
relation to PPC Barnet, its operations in the Democratic Republic of
Congo (“DRC”).
Resolution of DRC Exposures
PPC has entered into a binding agreement with PPC Barnet’s lenders
terminating their right to recourse to PPC, which, in the event of
acceleration, would have been an amount of c.US$175 million
(“Settlement Agreement”). The Settlement Agreement is effective on
the payment of a final deficiency settlement amount of
US$16.5 million, which PPC expects to make in early April 2021.
Simultaneously, PPC has entered into a binding term sheet to
restructure the c.US$175 million senior debt in PPC Barnet as part of
implementing a sustainable capital structure for that business. The
key terms of the restructuring include:
• Reinstatement of a portion of the PPC Barnet lenders’ senior debt
and conversion of a portion to a pay-as-you-can preference share
in PPC Barnet, front ranking other PPC Barnet creditors and
shareholders;
• Granting a right to PPC Barnet lenders to require PPC to capitalise
PPC’s shareholder loans made to PPC Barnet (including the US$16.5m
final settlement payment) to ordinary and preferred equity in PPC
Barnet, so as to restore the solvency of the business, if required;
• PPC will manage the business on behalf of the PPC Barnet lenders
under a management agreement for an initial five year term. The
management agreement provides for a fee, enabling PPC to recover
its costs over the term of the contract; and
• The restructuring is to be completed by 30 September 2021.
PPC has also reached agreement with the DRC minority shareholder in
PPC Barnet’s holding company, PPC Barnet DRC Holdings Mauritius,
ensuring alignment of interests and support for the implementation of
the restructuring of the business going forward.
The Settlement Agreement and related agreements de-risk PPC from
future economic downside risk to the DRC operations and effectively
directs the economics of the business to the PPC Barnet lenders.
Whilst PPC will retain both an ordinary equity and preferred equity
interest in PPC Barnet, given its deep subordination to the PPC Barnet
lenders, limited economic benefits are expected to flow to PPC in the
short to medium term from this business. PPC expects to no longer
consolidate the results of PPC Barnet on the implementation of the
restructure.
The conclusion of the Settlement Agreement represents a significant
milestone in the restructuring and refinancing project, providing
clarity on what has been a significant overhang on the Group by
removing a potential c.US$175 million liability from the Group’s
balance sheet. It is also expected to restore investor confidence in
the Group and free up management time to focus on core operations and
other long-term strategic initiatives.
Habesha Cement Share Company (“Habesha”)
Habesha, the Ethiopian associate of the Group, started to deliver
positive month to month EBITDA in its ramp-up phase. Habesha has
appointed advisors to develop a financial restructuring plan to
optimise its capital structure, the results of which are expected to
be presented to the Habesha board towards mid-2021.
Whilst PPC sees long-term value in the business, PPC has no obligation
to support the business nor invest further capital. PPC will assess
the restructuring proposal, when presented later this year, on its
merits and act accordingly.
PPC International capital raise
The process to raise capital in PPC International is still underway,
albeit subject to potential deferral pending the outcome of the
Habesha restructuring and the implementation of the DRC restructuring.
With the resolution of the DRC exposures the capital raise for PPC
International is no longer required for the implementation of a
sustainable capital structure of the Group.
Sale of PPC Lime
The structured sales process for PPC Lime continues to make good
progress, with shortlisted parties having completed due diligence and
binding offers are expected to be received by early April 2021. PPC
will assess these offers in the context of shareholder value creation
and targets entering into definitive sale agreements by the end of
May 2021, should any of the offers be acceptable.
South African Lenders and equity capital raise
In terms of the undertakings provided to its South African lenders
(“SA Lenders”), and subject to the resolution of its DRC exposures,
PPC committed in August 2020 to an equity capital raise of not less
than R750m by 31 March 2021 in order to de-gear its South African
balance sheet (“Capital Raise”).
PPC is pleased to advise that its SA Lenders have agreed to defer the
timing of the Capital Raise by six months to the end of September
2021. The SA Lenders have also agreed to review the need for the
Capital Raise should the South African businesses continue to de-gear
towards a sustainable debt metric of c.2x EBITDA. Shareholders will
be kept up to date as progress is made towards the achievement of this
key milestone.
OPERATIONAL UPDATE
The Group experienced a double-digit period-on-period growth in cement
sales from July 2020 to February 2021 despite new COVID-19
restrictions in certain markets. PPC’s ability to respond to the
strong increase in demand following the easing of lockdown
restrictions at the beginning of the 2021 financial year, has resulted
in a significant improvement in the Group’s financial performance.
Group Revenue Performance
PPC Group revenue increased by 7% period-on-period for the eleven
months ended February 2021 and 14% for the five months ended February
2021, driven primarily by strong cement demand in South Africa.
South Africa & Botswana Cement
Cement sales increased by 3% to 5% period-on-period for the eleven
months ended February 2021 and 15% to 20% period-on-period for the
five months ended February 2021. Sales to the retail sector were the
primary drivers of demand, with particularly robust demand experienced
in the rural and informal markets. Demand growth in the inland areas
offset declines in the coastal regions and Botswana. A lagged recovery
in commercial construction demand accounted for the decrease in sales
in the coastal areas. PPC implemented price increases to recover input
cost inflation.
South African cement producers have engaged the relevant authorities
to have locally produced cement classified as a designated product.
The designation will make it compulsory for locally produced cement
to be used in government-funded construction projects and will
prohibit the use of imported cement in such projects. Upon
implementation, the local cement industry is expected to benefit from
increased demand once the Government’s infrastructure build programme
gathers momentum.
Cement imports, which continue to pose a threat to the industry,
rebounded strongly after easing of the lockdown restrictions. PPC
estimates that cement imports were in line with the prior year at
1.2 million tonnes and accounted for 8% of demand for the twelve
months ended December 2020. Together with The Concrete Institute and
other industry players, PPC has applied to the relevant authorities
for relief against this unfair competition. A verification report
confirming receipt of all the required information for the application
process has been received, and a decision by the relevant authorities
to initiate an investigation is pending.
The presence of non-conforming cement in South Africa remains a major
threat to consumers. PPC continues to educate retailers and customers
about the risks of using such products.
Materials
For the eleven months ended February 2021, ash sales benefited from
increased cement demand and the shortage of alternative extenders like
slag, while demand for aggregates increased due to construction
demand. Readymix sales reduced as a result of a lagged recovery in
commercial construction activity. Overall, the materials division
revenues were flat period-on-period for the 11 months ended February
2021.
Lime
Lime sales declined by 39% period-on-period for the 11 months ended
February 2021 and 25% period-on-period for the five months ended
February 2021 due to a decline in steel-related activity. The closure
of operations by a significant customer further reduced the demand
for lime products. Initiatives are underway to optimise costs and
diversify the customer base to mitigate these challenges and a strong
recovery is expected. Strict cost management and focus on net working
capital reduction has resulted in a stronger cash generation compared
to the same period in the prior year.
Zimbabwe
PPC Zimbabwe continues to trade well. For the eleven months ended
February 2021, PPC Zimbabwe cement sales increased by 10% period-on-
period and 11% period-on-period for the five months ended February
2021. Retail demand, concrete product manufacturers and Government-
funded projects are the main drivers of cement sales. PPC adjusted
cement prices upwards in the second half of the 2021 financial year
to recover input cost inflation.
Rwanda
CIMERWA experienced a period-on-period increase of 7% in sales for
the eleven months ended February 2021 and 3% for the five months ended
February 2021. The Rwandan authorities imposed a second lockdown early
in 2021 which resulted in a slow-down in economic activity.
A new cement producer in Rwanda has commenced operations but, to date,
the impact on CIMERWA’s cement sales is negligible as demand in Rwanda
exceeds domestic production.
DRC
Sales in the DRC were less affected by COVID-19. PPC Barnet sales
increased by 16% period-on-period for the 11 months ended February
2021 and 26% period-on-period for the five months ended February 2021,
driven by the expansion of cement distribution into new territories.
Pricing was stable in US$.
Group EBITDA
Group EBITDA increased by 25% to 30% period-on-period for the eleven
months ended February 2021 and 45% to 50% period-on-period for the
five months ended February 2021 benefiting from increased cement sales
and stringent cost control.
Liquidity and cash flow
The Group has experienced the positive impact of improved cement
sales, cost reduction measures, enhanced working capital management
and cash preservation measures implemented over the 11 months to
February 2021.
The South African debt has reduced from R1.92 billion at 31 March 2020
to R1.64 billion at the end of February 2021.
Given the improved financial performance and reduction in gearing
levels, in particular in South Africa, key debt metrics are returning
to traditional banking covenant levels.
The Group is in good standing with its lenders, with sufficient
headroom in existing facilities to meet its operational requirements.
As discussed under “Resolution of DRC Exposures” above, the
cUS$175 million owed by PPC Barnet to its lenders has been resolved
and will be converted into a combination of re-instatement of senior
debt and a pay-as-you-can preference share. The Settlement Agreement
with the PPC Barnet lenders materially de-risks the Group balance
sheet.
Group free cash flow for the 11 months ended February 2021 is between
90% to 95% higher than the previous comparable 11 month period.
Earnings guidance
Currently, the Board of Directors of PPC Ltd (“Board”) does not have
the required certainty to provide guidance on the potential change in
earnings per share nor the likely range for earnings per share for
the year ending 31 March 2021. The Board will communicate this to the
market once it has the required certainty.
Outlook
Although the Group is experiencing positive momentum across most of
its markets, it remains cautious on the outlook for cement demand
given the prevailing uncertainties around the COVID-19 pandemic and
its resultant impact on economic activity. PPC will remain focused on
continuing to improve cost competitiveness through cost management
initiatives and cash management. It will take the necessary measures
to ensure that it can continue to serve its customers, protect its
employees, and implement strategic initiatives to ensure financial
sustainability through all demand cycles.
The financial information contained in this announcement has neither
been reviewed nor reported on by the Company’s external auditors.
Change in Group CFO
As communicated to shareholders at the Group’s interim results in
December 2020, Ms. Ronel van Dijk will step down as Group CFO with
effect from 31 March 2021 and Ms. Brenda Berlin will take over as
Group CFO on 1 April 2021. The Board appreciates the dedication of
Ms. van Dijk, who played a pivotal role in guiding the Company through
one of its most difficult periods, including negotiations with lenders
to address the impact of COVID-19 lockdowns and the delivery of the
2020 audited financial statements and half year results for 2021 under
very difficult circumstances. The Board welcomes Ms. Berlin to Team
PPC and looks forward to her contribution in further strengthening
the financial reporting and controls of the Company.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
With reference to the information included in this announcement
relating to the progress on the Project, the conclusion of the
Settlement Agreement and the Capital Raise, Shareholders of PPC are
advised to continue to exercise caution when dealing in the securities
of PPC until a further announcement regarding the outcome of the
possible sale of PPC Lime is made.
INVESTOR AND ANALYST CONFERENCE CALL
A conference call addressing the above updates will take place at
11.00 CAT, Thursday, 1 April, 2021. Participants are required to
register for the call using the following link:
www.diamondpass.net/5696790
Note that registered participants will receive their dial in number
upon registration. A recorded playback will be available with access
provided on request.
Sandton
31 March 2021
Sponsor:
Sasfin Capital
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 31-03-2021 01:01:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
RESTRUCTURING AND REFINANCING PROJECT UPDATE, OPERATIONAL UPDATE AND
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders of the Company (“Shareholders”) are referred to the
previous announcements released on the Stock Exchange News Service,
including the Restructuring and Refinancing Project Update and Renewal
of Cautionary Announcement released on 25 February 2021, wherein they
were advised on the status of the restructuring and refinancing
project (“Project”) underway.
RESTRUCTURING AND REFINANCING PROJECT UPDATE
PPC is pleased to report that it has made significant progress in
implementing a sustainable capital structure and improving the
investment prospects of the Group, including de-risking the Group’s
balance sheet through the removal of its contingent obligations in
relation to PPC Barnet, its operations in the Democratic Republic of
Congo (“DRC”).
Resolution of DRC Exposures
PPC has entered into a binding agreement with PPC Barnet’s lenders
terminating their right to recourse to PPC, which, in the event of
acceleration, would have been an amount of c.US$175 million
(“Settlement Agreement”). The Settlement Agreement is effective on
the payment of a final deficiency settlement amount of
US$16.5 million, which PPC expects to make in early April 2021.
Simultaneously, PPC has entered into a binding term sheet to
restructure the c.US$175 million senior debt in PPC Barnet as part of
implementing a sustainable capital structure for that business. The
key terms of the restructuring include:
• Reinstatement of a portion of the PPC Barnet lenders’ senior debt
and conversion of a portion to a pay-as-you-can preference share
in PPC Barnet, front ranking other PPC Barnet creditors and
shareholders;
• Granting a right to PPC Barnet lenders to require PPC to capitalise
PPC’s shareholder loans made to PPC Barnet (including the US$16.5m
final settlement payment) to ordinary and preferred equity in PPC
Barnet, so as to restore the solvency of the business, if required;
• PPC will manage the business on behalf of the PPC Barnet lenders
under a management agreement for an initial five year term. The
management agreement provides for a fee, enabling PPC to recover
its costs over the term of the contract; and
• The restructuring is to be completed by 30 September 2021.
PPC has also reached agreement with the DRC minority shareholder in
PPC Barnet’s holding company, PPC Barnet DRC Holdings Mauritius,
ensuring alignment of interests and support for the implementation of
the restructuring of the business going forward.
The Settlement Agreement and related agreements de-risk PPC from
future economic downside risk to the DRC operations and effectively
directs the economics of the business to the PPC Barnet lenders.
Whilst PPC will retain both an ordinary equity and preferred equity
interest in PPC Barnet, given its deep subordination to the PPC Barnet
lenders, limited economic benefits are expected to flow to PPC in the
short to medium term from this business. PPC expects to no longer
consolidate the results of PPC Barnet on the implementation of the
restructure.
The conclusion of the Settlement Agreement represents a significant
milestone in the restructuring and refinancing project, providing
clarity on what has been a significant overhang on the Group by
removing a potential c.US$175 million liability from the Group’s
balance sheet. It is also expected to restore investor confidence in
the Group and free up management time to focus on core operations and
other long-term strategic initiatives.
Habesha Cement Share Company (“Habesha”)
Habesha, the Ethiopian associate of the Group, started to deliver
positive month to month EBITDA in its ramp-up phase. Habesha has
appointed advisors to develop a financial restructuring plan to
optimise its capital structure, the results of which are expected to
be presented to the Habesha board towards mid-2021.
Whilst PPC sees long-term value in the business, PPC has no obligation
to support the business nor invest further capital. PPC will assess
the restructuring proposal, when presented later this year, on its
merits and act accordingly.
PPC International capital raise
The process to raise capital in PPC International is still underway,
albeit subject to potential deferral pending the outcome of the
Habesha restructuring and the implementation of the DRC restructuring.
With the resolution of the DRC exposures the capital raise for PPC
International is no longer required for the implementation of a
sustainable capital structure of the Group.
Sale of PPC Lime
The structured sales process for PPC Lime continues to make good
progress, with shortlisted parties having completed due diligence and
binding offers are expected to be received by early April 2021. PPC
will assess these offers in the context of shareholder value creation
and targets entering into definitive sale agreements by the end of
May 2021, should any of the offers be acceptable.
South African Lenders and equity capital raise
In terms of the undertakings provided to its South African lenders
(“SA Lenders”), and subject to the resolution of its DRC exposures,
PPC committed in August 2020 to an equity capital raise of not less
than R750m by 31 March 2021 in order to de-gear its South African
balance sheet (“Capital Raise”).
PPC is pleased to advise that its SA Lenders have agreed to defer the
timing of the Capital Raise by six months to the end of September
2021. The SA Lenders have also agreed to review the need for the
Capital Raise should the South African businesses continue to de-gear
towards a sustainable debt metric of c.2x EBITDA. Shareholders will
be kept up to date as progress is made towards the achievement of this
key milestone.
OPERATIONAL UPDATE
The Group experienced a double-digit period-on-period growth in cement
sales from July 2020 to February 2021 despite new COVID-19
restrictions in certain markets. PPC’s ability to respond to the
strong increase in demand following the easing of lockdown
restrictions at the beginning of the 2021 financial year, has resulted
in a significant improvement in the Group’s financial performance.
Group Revenue Performance
PPC Group revenue increased by 7% period-on-period for the eleven
months ended February 2021 and 14% for the five months ended February
2021, driven primarily by strong cement demand in South Africa.
South Africa & Botswana Cement
Cement sales increased by 3% to 5% period-on-period for the eleven
months ended February 2021 and 15% to 20% period-on-period for the
five months ended February 2021. Sales to the retail sector were the
primary drivers of demand, with particularly robust demand experienced
in the rural and informal markets. Demand growth in the inland areas
offset declines in the coastal regions and Botswana. A lagged recovery
in commercial construction demand accounted for the decrease in sales
in the coastal areas. PPC implemented price increases to recover input
cost inflation.
South African cement producers have engaged the relevant authorities
to have locally produced cement classified as a designated product.
The designation will make it compulsory for locally produced cement
to be used in government-funded construction projects and will
prohibit the use of imported cement in such projects. Upon
implementation, the local cement industry is expected to benefit from
increased demand once the Government’s infrastructure build programme
gathers momentum.
Cement imports, which continue to pose a threat to the industry,
rebounded strongly after easing of the lockdown restrictions. PPC
estimates that cement imports were in line with the prior year at
1.2 million tonnes and accounted for 8% of demand for the twelve
months ended December 2020. Together with The Concrete Institute and
other industry players, PPC has applied to the relevant authorities
for relief against this unfair competition. A verification report
confirming receipt of all the required information for the application
process has been received, and a decision by the relevant authorities
to initiate an investigation is pending.
The presence of non-conforming cement in South Africa remains a major
threat to consumers. PPC continues to educate retailers and customers
about the risks of using such products.
Materials
For the eleven months ended February 2021, ash sales benefited from
increased cement demand and the shortage of alternative extenders like
slag, while demand for aggregates increased due to construction
demand. Readymix sales reduced as a result of a lagged recovery in
commercial construction activity. Overall, the materials division
revenues were flat period-on-period for the 11 months ended February
2021.
Lime
Lime sales declined by 39% period-on-period for the 11 months ended
February 2021 and 25% period-on-period for the five months ended
February 2021 due to a decline in steel-related activity. The closure
of operations by a significant customer further reduced the demand
for lime products. Initiatives are underway to optimise costs and
diversify the customer base to mitigate these challenges and a strong
recovery is expected. Strict cost management and focus on net working
capital reduction has resulted in a stronger cash generation compared
to the same period in the prior year.
Zimbabwe
PPC Zimbabwe continues to trade well. For the eleven months ended
February 2021, PPC Zimbabwe cement sales increased by 10% period-on-
period and 11% period-on-period for the five months ended February
2021. Retail demand, concrete product manufacturers and Government-
funded projects are the main drivers of cement sales. PPC adjusted
cement prices upwards in the second half of the 2021 financial year
to recover input cost inflation.
Rwanda
CIMERWA experienced a period-on-period increase of 7% in sales for
the eleven months ended February 2021 and 3% for the five months ended
February 2021. The Rwandan authorities imposed a second lockdown early
in 2021 which resulted in a slow-down in economic activity.
A new cement producer in Rwanda has commenced operations but, to date,
the impact on CIMERWA’s cement sales is negligible as demand in Rwanda
exceeds domestic production.
DRC
Sales in the DRC were less affected by COVID-19. PPC Barnet sales
increased by 16% period-on-period for the 11 months ended February
2021 and 26% period-on-period for the five months ended February 2021,
driven by the expansion of cement distribution into new territories.
Pricing was stable in US$.
Group EBITDA
Group EBITDA increased by 25% to 30% period-on-period for the eleven
months ended February 2021 and 45% to 50% period-on-period for the
five months ended February 2021 benefiting from increased cement sales
and stringent cost control.
Liquidity and cash flow
The Group has experienced the positive impact of improved cement
sales, cost reduction measures, enhanced working capital management
and cash preservation measures implemented over the 11 months to
February 2021.
The South African debt has reduced from R1.92 billion at 31 March 2020
to R1.64 billion at the end of February 2021.
Given the improved financial performance and reduction in gearing
levels, in particular in South Africa, key debt metrics are returning
to traditional banking covenant levels.
The Group is in good standing with its lenders, with sufficient
headroom in existing facilities to meet its operational requirements.
As discussed under “Resolution of DRC Exposures” above, the
cUS$175 million owed by PPC Barnet to its lenders has been resolved
and will be converted into a combination of re-instatement of senior
debt and a pay-as-you-can preference share. The Settlement Agreement
with the PPC Barnet lenders materially de-risks the Group balance
sheet.
Group free cash flow for the 11 months ended February 2021 is between
90% to 95% higher than the previous comparable 11 month period.
Earnings guidance
Currently, the Board of Directors of PPC Ltd (“Board”) does not have
the required certainty to provide guidance on the potential change in
earnings per share nor the likely range for earnings per share for
the year ending 31 March 2021. The Board will communicate this to the
market once it has the required certainty.
Outlook
Although the Group is experiencing positive momentum across most of
its markets, it remains cautious on the outlook for cement demand
given the prevailing uncertainties around the COVID-19 pandemic and
its resultant impact on economic activity. PPC will remain focused on
continuing to improve cost competitiveness through cost management
initiatives and cash management. It will take the necessary measures
to ensure that it can continue to serve its customers, protect its
employees, and implement strategic initiatives to ensure financial
sustainability through all demand cycles.
The financial information contained in this announcement has neither
been reviewed nor reported on by the Company’s external auditors.
Change in Group CFO
As communicated to shareholders at the Group’s interim results in
December 2020, Ms. Ronel van Dijk will step down as Group CFO with
effect from 31 March 2021 and Ms. Brenda Berlin will take over as
Group CFO on 1 April 2021. The Board appreciates the dedication of
Ms. van Dijk, who played a pivotal role in guiding the Company through
one of its most difficult periods, including negotiations with lenders
to address the impact of COVID-19 lockdowns and the delivery of the
2020 audited financial statements and half year results for 2021 under
very difficult circumstances. The Board welcomes Ms. Berlin to Team
PPC and looks forward to her contribution in further strengthening
the financial reporting and controls of the Company.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
With reference to the information included in this announcement
relating to the progress on the Project, the conclusion of the
Settlement Agreement and the Capital Raise, Shareholders of PPC are
advised to continue to exercise caution when dealing in the securities
of PPC until a further announcement regarding the outcome of the
possible sale of PPC Lime is made.
INVESTOR AND ANALYST CONFERENCE CALL
A conference call addressing the above updates will take place at
11.00 CAT, Thursday, 1 April, 2021. Participants are required to
register for the call using the following link:
www.diamondpass.net/5696790
Note that registered participants will receive their dial in number
upon registration. A recorded playback will be available with access
provided on request.
Sandton
31 March 2021
Sponsor:
Sasfin Capital
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 31-03-2021 01:01:00
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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.
2021/02/25
Restructuring and refinancing project update and renewal of cautionary announcement
View ArticleRestructuring and refinancing project update and renewal of cautionary announcement
Restructuring and refinancing project update and renewal of cautionary announcement
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
RESTRUCTURING AND REFINANCING PROJECT UPDATE AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders of the Company are referred to the previous cautionary announcements
released on the Stock Exchange News Service, including the Renewal of Cautionary
Announcement released on 15 January 2021, wherein they were advised that PPC is
undertaking a restructuring and refinancing project (“Project”) with the objective
of implementing a sustainable capital structure and improving the investment
prospects of the Group.
PPC is able to report that it continues to make positive progress against key
milestones on the Project.
• In South Africa, all conditions precedent relating to the renewal of short and
long term facilities with its South African lenders, including the registration
of security, have been fulfilled. Agreed facilities provide adequate headroom
for the South African operations’ ongoing requirements.
• In the DRC, substantive negotiations continue with the DRC Lenders to implement
a sustainable capital structure for PPC Barnet (DRC) and to remove any recourse
to PPC Ltd for the provision of deficiency funding to these operations. The
negotiations are being conducted under the terms of a formal standstill
agreement, which is effective until 31 March 2021. PPC and the DRC Lenders
target resolution of the matter ahead of 31 March 2021.
• The process to raise capital in PPC International continues, with expressions
of interest received from various parties being considered.
• The structured sales process for PPC Lime is ongoing, with a number of non-
binding offers received at the end of January 2021 and short-listed parties
progressing to due diligence. PPC continues to target deal certainty by the end
of March 2021.
As previously disclosed, subject to the resolution of its DRC exposure, PPC has
committed to an equity capital raise by 31 March 2021 in order to de-gear its South
African balance sheet. Whilst positive progress is being made on the Project, PPC
will be formally engaging with its South African lenders to extend the timing of
the capital raise by three months to the end of June 2021, when certainty on the
key elements of the restructuring is expected.
Shareholders are therefore advised to continue to exercise caution when dealing
in securities of PPC until the funding arrangements with its respective lenders
are finalised and details of the proposed restructuring and refinancing are
published.
Sandton
25 February 2021
Sponsor
Sasfin Capital
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 25-02-2021 10:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
RESTRUCTURING AND REFINANCING PROJECT UPDATE AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders of the Company are referred to the previous cautionary announcements
released on the Stock Exchange News Service, including the Renewal of Cautionary
Announcement released on 15 January 2021, wherein they were advised that PPC is
undertaking a restructuring and refinancing project (“Project”) with the objective
of implementing a sustainable capital structure and improving the investment
prospects of the Group.
PPC is able to report that it continues to make positive progress against key
milestones on the Project.
• In South Africa, all conditions precedent relating to the renewal of short and
long term facilities with its South African lenders, including the registration
of security, have been fulfilled. Agreed facilities provide adequate headroom
for the South African operations’ ongoing requirements.
• In the DRC, substantive negotiations continue with the DRC Lenders to implement
a sustainable capital structure for PPC Barnet (DRC) and to remove any recourse
to PPC Ltd for the provision of deficiency funding to these operations. The
negotiations are being conducted under the terms of a formal standstill
agreement, which is effective until 31 March 2021. PPC and the DRC Lenders
target resolution of the matter ahead of 31 March 2021.
• The process to raise capital in PPC International continues, with expressions
of interest received from various parties being considered.
• The structured sales process for PPC Lime is ongoing, with a number of non-
binding offers received at the end of January 2021 and short-listed parties
progressing to due diligence. PPC continues to target deal certainty by the end
of March 2021.
As previously disclosed, subject to the resolution of its DRC exposure, PPC has
committed to an equity capital raise by 31 March 2021 in order to de-gear its South
African balance sheet. Whilst positive progress is being made on the Project, PPC
will be formally engaging with its South African lenders to extend the timing of
the capital raise by three months to the end of June 2021, when certainty on the
key elements of the restructuring is expected.
Shareholders are therefore advised to continue to exercise caution when dealing
in securities of PPC until the funding arrangements with its respective lenders
are finalised and details of the proposed restructuring and refinancing are
published.
Sandton
25 February 2021
Sponsor
Sasfin Capital
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 25-02-2021 10:00:00
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.
Change to the Board of PPC
Change to the Board of PPC
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”)
CHANGES TO THE BOARD OF DIRECTORS OF PPC (“BOARD”)
In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited,
the Board wishes to inform shareholders of the following change to the Board.
Appointment of a Non-executive Director to the Board
The Board is pleased to announce the appointment of Kunyalala Maphisa (“Kunyalala”)
as a non-executive director and member of the Investment Committee and the Social,
Ethics and Transformation Committee of PPC with effect 1 February 2021.
Kunyalala holds a BA (Industrial Relations and Public Administration) Degree, LLB
Degree and LLM Degree (International Trade Law) from the University of Cape Town.
Kunyalala served articles of clerkship at JanS de Villiers, (incorporated into
Werkmans Attorneys) and is an admitted attorney. Kunyalala, an entrepreneur, has
served on a number of Boards of companies and Non-Profit Organizations. She has
extensive experience in commercial law, having worked for more than 15 years in
areas spanning Mergers and Acquisitions, Competition law and Project and
Acquisition Finance. She has worked as a senior executive in a number of companies
and done work in a number of African countries outside South Africa including
Nigeria, Democratic Republic of Congo, Malawi, Cote D'Ivoire, Kenya, Zambia and
Zimbabwe.
The Board welcomes Kunyalala Maphisa and looks forward to her contribution.
Sandton
27 January 2021
Sponsor
Sasfin Capital
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 27-01-2021 08:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”)
CHANGES TO THE BOARD OF DIRECTORS OF PPC (“BOARD”)
In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited,
the Board wishes to inform shareholders of the following change to the Board.
Appointment of a Non-executive Director to the Board
The Board is pleased to announce the appointment of Kunyalala Maphisa (“Kunyalala”)
as a non-executive director and member of the Investment Committee and the Social,
Ethics and Transformation Committee of PPC with effect 1 February 2021.
Kunyalala holds a BA (Industrial Relations and Public Administration) Degree, LLB
Degree and LLM Degree (International Trade Law) from the University of Cape Town.
Kunyalala served articles of clerkship at JanS de Villiers, (incorporated into
Werkmans Attorneys) and is an admitted attorney. Kunyalala, an entrepreneur, has
served on a number of Boards of companies and Non-Profit Organizations. She has
extensive experience in commercial law, having worked for more than 15 years in
areas spanning Mergers and Acquisitions, Competition law and Project and
Acquisition Finance. She has worked as a senior executive in a number of companies
and done work in a number of African countries outside South Africa including
Nigeria, Democratic Republic of Congo, Malawi, Cote D'Ivoire, Kenya, Zambia and
Zimbabwe.
The Board welcomes Kunyalala Maphisa and looks forward to her contribution.
Sandton
27 January 2021
Sponsor
Sasfin Capital
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 27-01-2021 08:00:00
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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.
Renewal of cautionary announcement
Renewal of cautionary announcement
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders of the Company (“Shareholders”) are referred to the previous
announcements released on the Stock Exchange News Service, including the
announcement released on 2 December 2020 and the interim results for the 6 months
ended 30 September 2020 released on 8 December 2020, wherein they were advised
that PPC is undertaking a restructuring and refinancing project (“Project”) with
the objective of implementing a sustainable capital structure and improving the
investment prospects of the Group.
PPC is able to report that it continues to make good progress against key milestones
on the Project.
Shareholders are therefore advised to continue exercising caution when dealing in
securities of PPC until the funding arrangements with its respective lenders are
finalised and details of the proposed restructuring and refinancing are published.
Sandton
15 January 2021
Sponsor
Sasfin Capital
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 15-01-2021 03:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders of the Company (“Shareholders”) are referred to the previous
announcements released on the Stock Exchange News Service, including the
announcement released on 2 December 2020 and the interim results for the 6 months
ended 30 September 2020 released on 8 December 2020, wherein they were advised
that PPC is undertaking a restructuring and refinancing project (“Project”) with
the objective of implementing a sustainable capital structure and improving the
investment prospects of the Group.
PPC is able to report that it continues to make good progress against key milestones
on the Project.
Shareholders are therefore advised to continue exercising caution when dealing in
securities of PPC until the funding arrangements with its respective lenders are
finalised and details of the proposed restructuring and refinancing are published.
Sandton
15 January 2021
Sponsor
Sasfin Capital
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 15-01-2021 03:00:00
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.
2020
Change in sponsor
Change in sponsor
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the company” or “the Group”)
CHANGE IN SPONSOR
In accordance with paragraph 2.6A(b) of the JSE Limited Listings
Requirements, PPC Ltd wishes to advise that it has terminated the services
of Merrill Lynch South Africa (Pty) Ltd trading as BofA Securities as Sponsor
to the Company with effect from 31 December 2020, by mutual consent.
Further to the above, PPC Ltd has appointed Sasfin Capital(Pty) Ltd as Sponsor
to the Company with effect from 01 January 2021.
Sandton
24 December 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 24-12-2020 07:05:00
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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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the company” or “the Group”)
CHANGE IN SPONSOR
In accordance with paragraph 2.6A(b) of the JSE Limited Listings
Requirements, PPC Ltd wishes to advise that it has terminated the services
of Merrill Lynch South Africa (Pty) Ltd trading as BofA Securities as Sponsor
to the Company with effect from 31 December 2020, by mutual consent.
Further to the above, PPC Ltd has appointed Sasfin Capital(Pty) Ltd as Sponsor
to the Company with effect from 01 January 2021.
Sandton
24 December 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 24-12-2020 07:05:00
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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.
2020/12/08
Summarised consolidated financial statements for the six months ended 30 September 2020
View ArticleSummarised consolidated financial statements for the six months ended 30 September 2020
Summarised consolidated financial statements for the six months ended 30 September 2020
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the company” or “the Group”)
SHORT FORM ANNOUNCEMENT - SUMMARISED CONSOLIDATED FINANCIAL STATEMENTS FOR
THE SIX MONTHS ENDED 30 SEPTEMBER 2020
SALIENT FEATURES
- Group revenue: R5 006 million (September 2019: R4 948 million)
- Group EBITDA: R996 million (September 2019: R868 million)
- Earnings per share: 19 cents (September 2019: 32 cents, restated)
- Headline earnings per share: 19 cents (September 2019: 32 cents,
restated)
- Cash flow generated from operations: R 981 million (September 2019: R
503 million)
- The Group did not declare a dividend in the current or previous period
Roland van Wijnen, chief executive officer, said:
“After a difficult start to the financial year as a result of the COVID-19
related trading restrictions across the jurisdictions in which we operate,
I am pleased that we are once again able to serve our customers and play our
part in keeping the economy going. My gratitude goes to my colleagues who
have been working diligently to keep our operations running while observing
stringent health and safety protocols. Our business has benefitted from a
strong recovery in cement sales in all our markets post the easing of the
lockdown restrictions, and this has resulted in improved financial
performance for the Group. Our efforts to improve cost competitiveness and
reposition PPC on a sound financial footing are yielding encouraging results,
and we are making good progress on our capital restructuring project, which
remains a key priority for the Group."
GROUP PERFORMANCE
Despite the initial COVID-19 related trading restrictions, Group revenue
increased by 1% to R5 006 million (September 2019: R4 948 million) due to
robust cement sales post the easing of COVID-19 restrictions across the
jurisdictions in which the group operates.
Cost of sales reduced by 4% to R3 895 million (September 2019: R4
042 million, restated) compared with the previous year due to cost savings,
the decline in volumes, and a reduction in depreciation and amortisation.
Administration and other operating expenditure declined by 10% to
R492 million (September 2019: R548 million, restated) driven by the
successful efforts to improve cost competitiveness. Group EBITDA increased
by 15% to R996 million (September 2019: R868 million) with an EBITDA margin
of 19.9% (September 2019: 17.5%). Operating profits increased by 77% to R610
million (September 2019: R344 million, restated).
Fair value adjustments and foreign exchange movements resulted in a loss of
R366 million (September 2019: R120 million loss, restated), mostly as a
result of the revaluation of foreign-denominated intercompany loan accounts.
The fair value gain on the Zimbabwe financial asset of R139 million (September
2019: R113 million, restated) consists of intrinsic value gain of R202
million and credit risk fair value loss of R63 million (September 2019: R76
million). Zimbabwe blocked funds resulted in a fair value loss of R10 million
(September 2019: R212 million loss, restated). The application of IAS 29
Financial Reporting in Hyperinflationary Economies resulted in a net monetary
gain amounting to R326 million (September 2019: R514 million).
Finance costs increased by 5% to R330 million (September 2019: R313 million,
restated) due to currency movements on foreign currency denominated debt.
South African finance costs decreased by 5% to R106 million (September 2019:
R111 million, restated) while international finance costs increased by 11%
to R224 million (September 2019: R202 million). Excluding unfavourable
currency movements, international finance costs declined by 6%.
Taxation decreased to R109 million relative to R195 million, restated in
September 2019.
After taking into account the above fair value adjustments and
hyperinflation, earnings and headline earnings attributable to shareholders
of PPC Ltd declined by 37% to R287 million.
Net cash inflow from operating activities amounted to R769 million (September
2019: R244 million, restated). Cash generation benefitted from improvements
in EBITDA and a reduction in working capital absorption to R21 million
(September 2019: R342 million absorption). Cash generation and preservation
remain a key priority for the group. Capital investments in property, plant
and equipment decreased by 26% to R166 million (September 2019:
R225 million).
Gross debt amounted to R5 218 million at 30 September 2020 (September 2019:
R5 131 million). Gross debt declined by R582 million from 31 March 2020. The
currency impact on foreign currency-denominated debt is a reduction of
R304 million from 31 March 2020 to 30 September 2020.
CEMENT SOUTH AFRICA AND BOTSWANA
PPC experienced muted cement sales in April and May 2020 as a result of
COVID-19 related trading restrictions in South Africa. Cement sales have
since rebounded with double-digit year-on-year growth since June 2020. The
increase in volumes is primarily retail led. PPC is also beginning to
experience the positive impact of increased infrastructure spending.
Over the first six months of FY21, PPC South Africa and Botswana cement
volumes declined by 5% to 10% with declines in the coastal regions offsetting
growth in the inland areas. Q1 cement sales declined by more than 35%,
followed by a strong rebound of 20% to 25% in Q2. The sales momentum has
continued into October and November.
PPC estimates that the South African cement industry sales volumes were in
line with prior year despite the COVID-19 related sales restrictions. A
shortage of extenders has impacted blender activity, and this has benefitted
integrated cement producers such as PPC. The availability of non-conforming
cement in the market remains a concern for the industry over the medium term.
Cement imports continue to pose a threat to the sustainability of the South
African cement industry. Although imports of cement and clinker decreased by
approximately 6% to 621 609 tonnes in the current reporting period due to
the lockdown restrictions, this is likely to change as the global economy
reopens. PPC, in conjunction with The Concrete Institute (TCI) and other
industry players, have applied to the relevant authorities for relief against
unfair competition. All the necessary documentation and processes have been
completed. PPC has received a verification report confirming receipt of all
required information for the application process and is now awaiting the
initiation of an investigation by the regulator.
Revenue in South Africa and Botswana declined by 8% to R2 355 million
(September 2019: R2 555 million). Average realised selling prices were flat
on prior year as change in the product mix offset the impact of price
increases. EBITDA reduced by 8% to R337 million (September 2019: R367
million) with EBITDA margin of 14.3% (September 2019: 14.4%).
MATERIALS BUSINESS
Aggregates, readymix and ash
Revenue decreased by 20% to R514 million (September 2019: R645 million),
primarily as a result of reduced volumes in the aggregates division. Demand
for aggregates is beginning to benefit from increased infrastructure spend
with double-digit year-on-year volume growth in September. EBITDA decreased
to a loss of R6 million (September 2019: R35 million) due to the decline in
volumes.
Lime
The lime division’s revenue declined by 36% to R279 million (September 2019:
R434 million) with volumes and pricing under pressure due to the decline in
steel-related activity. The shut-down of operations by a major customer
further reduced demand for lime products. A number of initiatives have been
implemented to improve the performance of this business. EBITDA contracted
by 56% to R22 million (September 2019: R50 million) primarily due to a
similar decline in volumes. With the reported shortage of locally
manufactured steel, PPC expects demand to recover in the latter part of the
financial year.
INTERNATIONAL
Zimbabwe
Although trading conditions in Zimbabwe were characterised by a challenging
economic environment and the impact of COVID-19 related lockdown
restrictions, domestic cement volumes grew by 5% - 10%, supported by ongoing
infrastructure projects.
PPC Zimbabwe cement sales grew in the similar range, supported by an increase
in volumes of 35% to 40% in Q2. The positive sales momentum has continued
into October and November, albeit at a normalised rate.
Revenue increased by 60% to R797 million (September 2019: R497 million).
Cement pricing was adjusted to account for the increase in inflation and the
devaluation of the local currency. Realised selling prices in US$ increased
by 23%. EBITDA improved by 62% to R326 million (September 2019: R201 million)
and EBITDA margins improved to 40.9%, versus 40.4% in September 2019. PPC
Zimbabwe continues to meet its debt obligations in-country while remaining
financially self-sufficient, and recently declared a dividend to its
shareholders of US$6.6 million, of which PPC is entitled to US$4.7 million.
PPC received US$4.4 million after withholding tax.
Rwanda
In Rwanda, CIMERWA continues to benefit from robust cement demand, driven by
large infrastructure projects, growth in the retail market and export demand
from the eastern DRC.
Like the other jurisdictions in which PPC operates, cement sales were
affected by COVID-19 related restrictions imposed by the authorities. CIMERWA
cement sales in Q1 were broadly in line with prior year, with a strong
recovery in Q2. For the six months ended 30 September 2020, CIMERWA achieved
revenue growth of 28% to R659 million (September 2019: R514 million),
supported by a 10% increase in volumes, stable pricing in US$, and translation
gains. EBITDA increased by 35% to R211 million (September 2019: R156 million)
due to higher revenues and stringent cost control. EBITDA margins improved
to 32.0% from 30.4% in September 2019.
DRC
PPC Barnet in the DRC achieved revenue growth of 33% to R402 million
(September 2019: R303 million), driven by volume growth of 8%, higher pricing
in US$ and translation gains. EBITDA improved by 64% to R133 million
(September 2019: R81 million) with corresponding margins of 33.1%. EBITDA
benefitted from stringent cost control, entrenchment of our route to market
strategies, as well as the positive EBITDA impact of clinker and cement
inventory movements in the period.
The financial information contained in this announcement has neither been
reviewed nor reported on by the Company´s external auditors.
RESTRUCTURING AND REFINANCING UPDATE
PPC continues to make good progress against key milestones in its
restructuring and refinancing project with the objective of implementing a
sustainable capital structure and improving the investment prospects of the
group.
In South Africa, PPC has signed facilities agreements with its two primary
South African lenders, who provide R1.85 billion of long term facilities and
R625 million of short term facilities. The final terms of these agreements
are substantially the same as those disclosed in note 36 to the audited
consolidated financial statements for the year ended 31 March 2020. PPC is
also finalising documentation relating to the provision of security,
including a security pool arrangement comprising immovable property, debtors
and inventory.
PPC has also agreed revised terms with its third South African lender for a
working capital facility of R175 million, which has now removed the
requirement of being part of the security pool arrangement.
In the DRC, PPC has signed a formal standstill agreement with its DRC lenders.
The final terms of the agreement are substantially the same as those of the
termsheet agreed at the end of August 2020, as disclosed in note 36 to the
audited consolidated financial statements for the year ended 31 March 2020.
PPC is actively engaging with the DRC Lenders, who have now appointed
financial and legal advisors, on a detailed restructuring plan.
Following a number of unsolicited approaches regarding PPC Lime, PPC has
decided to accelerate the sale of PPC Lime and appointed financial advisors
to manage a structured sales process of the business. PPC is targeting deal
certainty by the end of Q1 2021.
OUTLOOK
Although the group is experiencing positive sales momentum across most of
its markets, PPC remains cautious on the outlook for the rest of FY21 given
the ongoing health crisis and its resultant impact on economic activity. PPC
will remain focused on cash preservation and improving cost competitiveness
by lowering operational costs.
Management changes
During the first 6 months of the year, PPC restructured its Group
Administration functions with the aim to increase country responsibility and
reduce overhead costs. This resulted in the Group Human Resource department
being reduced whilst the Legal & Compliance and Company Secretarial
departments were merged. Consequently, the Group HR Executive, Ms.
Phindokuhle Mohlala and the Group Company Secretary, Ms. Kristell
Holtzhausen, have agreed to leave PPC. Mr. Kevin Ross has been appointed as
the Group Company Secretary effective 1 January 2021, in addition to his
responsibilities as Group Head Legal & Compliance. The Board wishes to thank
Ms. Mohlala and Ms. Holtzhausen for their dedicated service to PPC and wishes
them well in their future endeavours.
The Group CFO, Ms. Ronel van Dijk, has decided to step down with effect from
31 March 2021 to rebalance her other commitments. Ms. Brenda Berlin will
join PPC as Group CFO Designate from 15 February 2021 to formally take over
as Group CFO on 1 April 2021. Ms. Berlin is currently CFO and acting CEO at
MC Mining and will contribute a wealth of experience and knowledge to PPC’s
Finance function. Prior to MC Mining, Ms. Berlin served as CFO of Impala
Platinum Holdings Limited (“Implats”) for seven years. To ensure a smooth
handover, Ms. van Dijk has agreed to assist the Company with the upcoming
year-end results and the audit process on a consultancy basis starting 1
April 2021. During her time at PPC, Ms. van Dijk played a pivotal role in
guiding the Company through one of its most difficult periods, which included
negotiations with lenders to address the impact of COVID-19 lockdowns. She
has also introduced various initiatives aimed at improving the Group’s
reporting processes and internal controls. The Board appreciates the
dedication of Ms. van Dijk who has been instrumental in the delivery of the
2020 audited financial statements under very difficult circumstances. The
Board welcomes Ms. Berlin to Team PPC and looks forward to her contribution
in further strengthening the financial reporting and controls of the Company.
SHORT FORM STATEMENT
This short form announcement is the responsibility of the directors. It is
only a summary of the information contained in the full announcement and
does not contain full or complete details. Any investment decision should
be based on the full announcement accessible from Tuesday, 8 December 2020,
via the JSE link and also available on the Company's website at
https://www.ppc.africa/corporate/investors-media/financial-presentations-
reports.
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2020/JSE/ISSE/PPC/PPC30Sept.pdf
A copy of the full announcement is also available for inspection at the
company's registered office (by appointment, observing COVID-19
restrictions), and may be requested from the Company Secretary Kristell
Holtzhausen at Kristell.holtzhausen@ppc.co.za at no charge, weekdays during
office hours.
A live and recorded video webcast of the results presentation will be held
today at 11:00am (SAST) and can be accessed via this link:
https://presentations.corpcam.com/RegistrationPage.aspx?id=PPCDecember2020
Sandton
8 December 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 08-12-2020 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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the company” or “the Group”)
SHORT FORM ANNOUNCEMENT - SUMMARISED CONSOLIDATED FINANCIAL STATEMENTS FOR
THE SIX MONTHS ENDED 30 SEPTEMBER 2020
SALIENT FEATURES
- Group revenue: R5 006 million (September 2019: R4 948 million)
- Group EBITDA: R996 million (September 2019: R868 million)
- Earnings per share: 19 cents (September 2019: 32 cents, restated)
- Headline earnings per share: 19 cents (September 2019: 32 cents,
restated)
- Cash flow generated from operations: R 981 million (September 2019: R
503 million)
- The Group did not declare a dividend in the current or previous period
Roland van Wijnen, chief executive officer, said:
“After a difficult start to the financial year as a result of the COVID-19
related trading restrictions across the jurisdictions in which we operate,
I am pleased that we are once again able to serve our customers and play our
part in keeping the economy going. My gratitude goes to my colleagues who
have been working diligently to keep our operations running while observing
stringent health and safety protocols. Our business has benefitted from a
strong recovery in cement sales in all our markets post the easing of the
lockdown restrictions, and this has resulted in improved financial
performance for the Group. Our efforts to improve cost competitiveness and
reposition PPC on a sound financial footing are yielding encouraging results,
and we are making good progress on our capital restructuring project, which
remains a key priority for the Group."
GROUP PERFORMANCE
Despite the initial COVID-19 related trading restrictions, Group revenue
increased by 1% to R5 006 million (September 2019: R4 948 million) due to
robust cement sales post the easing of COVID-19 restrictions across the
jurisdictions in which the group operates.
Cost of sales reduced by 4% to R3 895 million (September 2019: R4
042 million, restated) compared with the previous year due to cost savings,
the decline in volumes, and a reduction in depreciation and amortisation.
Administration and other operating expenditure declined by 10% to
R492 million (September 2019: R548 million, restated) driven by the
successful efforts to improve cost competitiveness. Group EBITDA increased
by 15% to R996 million (September 2019: R868 million) with an EBITDA margin
of 19.9% (September 2019: 17.5%). Operating profits increased by 77% to R610
million (September 2019: R344 million, restated).
Fair value adjustments and foreign exchange movements resulted in a loss of
R366 million (September 2019: R120 million loss, restated), mostly as a
result of the revaluation of foreign-denominated intercompany loan accounts.
The fair value gain on the Zimbabwe financial asset of R139 million (September
2019: R113 million, restated) consists of intrinsic value gain of R202
million and credit risk fair value loss of R63 million (September 2019: R76
million). Zimbabwe blocked funds resulted in a fair value loss of R10 million
(September 2019: R212 million loss, restated). The application of IAS 29
Financial Reporting in Hyperinflationary Economies resulted in a net monetary
gain amounting to R326 million (September 2019: R514 million).
Finance costs increased by 5% to R330 million (September 2019: R313 million,
restated) due to currency movements on foreign currency denominated debt.
South African finance costs decreased by 5% to R106 million (September 2019:
R111 million, restated) while international finance costs increased by 11%
to R224 million (September 2019: R202 million). Excluding unfavourable
currency movements, international finance costs declined by 6%.
Taxation decreased to R109 million relative to R195 million, restated in
September 2019.
After taking into account the above fair value adjustments and
hyperinflation, earnings and headline earnings attributable to shareholders
of PPC Ltd declined by 37% to R287 million.
Net cash inflow from operating activities amounted to R769 million (September
2019: R244 million, restated). Cash generation benefitted from improvements
in EBITDA and a reduction in working capital absorption to R21 million
(September 2019: R342 million absorption). Cash generation and preservation
remain a key priority for the group. Capital investments in property, plant
and equipment decreased by 26% to R166 million (September 2019:
R225 million).
Gross debt amounted to R5 218 million at 30 September 2020 (September 2019:
R5 131 million). Gross debt declined by R582 million from 31 March 2020. The
currency impact on foreign currency-denominated debt is a reduction of
R304 million from 31 March 2020 to 30 September 2020.
CEMENT SOUTH AFRICA AND BOTSWANA
PPC experienced muted cement sales in April and May 2020 as a result of
COVID-19 related trading restrictions in South Africa. Cement sales have
since rebounded with double-digit year-on-year growth since June 2020. The
increase in volumes is primarily retail led. PPC is also beginning to
experience the positive impact of increased infrastructure spending.
Over the first six months of FY21, PPC South Africa and Botswana cement
volumes declined by 5% to 10% with declines in the coastal regions offsetting
growth in the inland areas. Q1 cement sales declined by more than 35%,
followed by a strong rebound of 20% to 25% in Q2. The sales momentum has
continued into October and November.
PPC estimates that the South African cement industry sales volumes were in
line with prior year despite the COVID-19 related sales restrictions. A
shortage of extenders has impacted blender activity, and this has benefitted
integrated cement producers such as PPC. The availability of non-conforming
cement in the market remains a concern for the industry over the medium term.
Cement imports continue to pose a threat to the sustainability of the South
African cement industry. Although imports of cement and clinker decreased by
approximately 6% to 621 609 tonnes in the current reporting period due to
the lockdown restrictions, this is likely to change as the global economy
reopens. PPC, in conjunction with The Concrete Institute (TCI) and other
industry players, have applied to the relevant authorities for relief against
unfair competition. All the necessary documentation and processes have been
completed. PPC has received a verification report confirming receipt of all
required information for the application process and is now awaiting the
initiation of an investigation by the regulator.
Revenue in South Africa and Botswana declined by 8% to R2 355 million
(September 2019: R2 555 million). Average realised selling prices were flat
on prior year as change in the product mix offset the impact of price
increases. EBITDA reduced by 8% to R337 million (September 2019: R367
million) with EBITDA margin of 14.3% (September 2019: 14.4%).
MATERIALS BUSINESS
Aggregates, readymix and ash
Revenue decreased by 20% to R514 million (September 2019: R645 million),
primarily as a result of reduced volumes in the aggregates division. Demand
for aggregates is beginning to benefit from increased infrastructure spend
with double-digit year-on-year volume growth in September. EBITDA decreased
to a loss of R6 million (September 2019: R35 million) due to the decline in
volumes.
Lime
The lime division’s revenue declined by 36% to R279 million (September 2019:
R434 million) with volumes and pricing under pressure due to the decline in
steel-related activity. The shut-down of operations by a major customer
further reduced demand for lime products. A number of initiatives have been
implemented to improve the performance of this business. EBITDA contracted
by 56% to R22 million (September 2019: R50 million) primarily due to a
similar decline in volumes. With the reported shortage of locally
manufactured steel, PPC expects demand to recover in the latter part of the
financial year.
INTERNATIONAL
Zimbabwe
Although trading conditions in Zimbabwe were characterised by a challenging
economic environment and the impact of COVID-19 related lockdown
restrictions, domestic cement volumes grew by 5% - 10%, supported by ongoing
infrastructure projects.
PPC Zimbabwe cement sales grew in the similar range, supported by an increase
in volumes of 35% to 40% in Q2. The positive sales momentum has continued
into October and November, albeit at a normalised rate.
Revenue increased by 60% to R797 million (September 2019: R497 million).
Cement pricing was adjusted to account for the increase in inflation and the
devaluation of the local currency. Realised selling prices in US$ increased
by 23%. EBITDA improved by 62% to R326 million (September 2019: R201 million)
and EBITDA margins improved to 40.9%, versus 40.4% in September 2019. PPC
Zimbabwe continues to meet its debt obligations in-country while remaining
financially self-sufficient, and recently declared a dividend to its
shareholders of US$6.6 million, of which PPC is entitled to US$4.7 million.
PPC received US$4.4 million after withholding tax.
Rwanda
In Rwanda, CIMERWA continues to benefit from robust cement demand, driven by
large infrastructure projects, growth in the retail market and export demand
from the eastern DRC.
Like the other jurisdictions in which PPC operates, cement sales were
affected by COVID-19 related restrictions imposed by the authorities. CIMERWA
cement sales in Q1 were broadly in line with prior year, with a strong
recovery in Q2. For the six months ended 30 September 2020, CIMERWA achieved
revenue growth of 28% to R659 million (September 2019: R514 million),
supported by a 10% increase in volumes, stable pricing in US$, and translation
gains. EBITDA increased by 35% to R211 million (September 2019: R156 million)
due to higher revenues and stringent cost control. EBITDA margins improved
to 32.0% from 30.4% in September 2019.
DRC
PPC Barnet in the DRC achieved revenue growth of 33% to R402 million
(September 2019: R303 million), driven by volume growth of 8%, higher pricing
in US$ and translation gains. EBITDA improved by 64% to R133 million
(September 2019: R81 million) with corresponding margins of 33.1%. EBITDA
benefitted from stringent cost control, entrenchment of our route to market
strategies, as well as the positive EBITDA impact of clinker and cement
inventory movements in the period.
The financial information contained in this announcement has neither been
reviewed nor reported on by the Company´s external auditors.
RESTRUCTURING AND REFINANCING UPDATE
PPC continues to make good progress against key milestones in its
restructuring and refinancing project with the objective of implementing a
sustainable capital structure and improving the investment prospects of the
group.
In South Africa, PPC has signed facilities agreements with its two primary
South African lenders, who provide R1.85 billion of long term facilities and
R625 million of short term facilities. The final terms of these agreements
are substantially the same as those disclosed in note 36 to the audited
consolidated financial statements for the year ended 31 March 2020. PPC is
also finalising documentation relating to the provision of security,
including a security pool arrangement comprising immovable property, debtors
and inventory.
PPC has also agreed revised terms with its third South African lender for a
working capital facility of R175 million, which has now removed the
requirement of being part of the security pool arrangement.
In the DRC, PPC has signed a formal standstill agreement with its DRC lenders.
The final terms of the agreement are substantially the same as those of the
termsheet agreed at the end of August 2020, as disclosed in note 36 to the
audited consolidated financial statements for the year ended 31 March 2020.
PPC is actively engaging with the DRC Lenders, who have now appointed
financial and legal advisors, on a detailed restructuring plan.
Following a number of unsolicited approaches regarding PPC Lime, PPC has
decided to accelerate the sale of PPC Lime and appointed financial advisors
to manage a structured sales process of the business. PPC is targeting deal
certainty by the end of Q1 2021.
OUTLOOK
Although the group is experiencing positive sales momentum across most of
its markets, PPC remains cautious on the outlook for the rest of FY21 given
the ongoing health crisis and its resultant impact on economic activity. PPC
will remain focused on cash preservation and improving cost competitiveness
by lowering operational costs.
Management changes
During the first 6 months of the year, PPC restructured its Group
Administration functions with the aim to increase country responsibility and
reduce overhead costs. This resulted in the Group Human Resource department
being reduced whilst the Legal & Compliance and Company Secretarial
departments were merged. Consequently, the Group HR Executive, Ms.
Phindokuhle Mohlala and the Group Company Secretary, Ms. Kristell
Holtzhausen, have agreed to leave PPC. Mr. Kevin Ross has been appointed as
the Group Company Secretary effective 1 January 2021, in addition to his
responsibilities as Group Head Legal & Compliance. The Board wishes to thank
Ms. Mohlala and Ms. Holtzhausen for their dedicated service to PPC and wishes
them well in their future endeavours.
The Group CFO, Ms. Ronel van Dijk, has decided to step down with effect from
31 March 2021 to rebalance her other commitments. Ms. Brenda Berlin will
join PPC as Group CFO Designate from 15 February 2021 to formally take over
as Group CFO on 1 April 2021. Ms. Berlin is currently CFO and acting CEO at
MC Mining and will contribute a wealth of experience and knowledge to PPC’s
Finance function. Prior to MC Mining, Ms. Berlin served as CFO of Impala
Platinum Holdings Limited (“Implats”) for seven years. To ensure a smooth
handover, Ms. van Dijk has agreed to assist the Company with the upcoming
year-end results and the audit process on a consultancy basis starting 1
April 2021. During her time at PPC, Ms. van Dijk played a pivotal role in
guiding the Company through one of its most difficult periods, which included
negotiations with lenders to address the impact of COVID-19 lockdowns. She
has also introduced various initiatives aimed at improving the Group’s
reporting processes and internal controls. The Board appreciates the
dedication of Ms. van Dijk who has been instrumental in the delivery of the
2020 audited financial statements under very difficult circumstances. The
Board welcomes Ms. Berlin to Team PPC and looks forward to her contribution
in further strengthening the financial reporting and controls of the Company.
SHORT FORM STATEMENT
This short form announcement is the responsibility of the directors. It is
only a summary of the information contained in the full announcement and
does not contain full or complete details. Any investment decision should
be based on the full announcement accessible from Tuesday, 8 December 2020,
via the JSE link and also available on the Company's website at
https://www.ppc.africa/corporate/investors-media/financial-presentations-
reports.
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2020/JSE/ISSE/PPC/PPC30Sept.pdf
A copy of the full announcement is also available for inspection at the
company's registered office (by appointment, observing COVID-19
restrictions), and may be requested from the Company Secretary Kristell
Holtzhausen at Kristell.holtzhausen@ppc.co.za at no charge, weekdays during
office hours.
A live and recorded video webcast of the results presentation will be held
today at 11:00am (SAST) and can be accessed via this link:
https://presentations.corpcam.com/RegistrationPage.aspx?id=PPCDecember2020
Sandton
8 December 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 08-12-2020 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.
2020/12/02
Restatement to prior period financial results, trading statement, project update and renewal of cautionary
View ArticleRestatement to prior period financial results, trading statement, project update and renewal of cautionary
Restatement to prior period financial results, trading statement, project update and renewal of cautionary
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “the Group”)
RESTATEMENT TO PRIOR PERIOD FINANCIAL RESULTS, TRADING STATEMENT,
RESTRUCTURING AND REFINANCING PROJECT UPDATE AND RENEWAL OF CAUTIONARY
ANNOUNCEMENT
RESTATEMENT TO PRIOR PERIOD FINANCIAL RESULTS
Shareholders of the Company (“Shareholders”) are referred to the
announcements on the Stock Exchange News Services (“SENS”) issued on
18 August 2020 and 30 September 2020. The Company wishes to advise
Shareholders that all the 31 March 2020 prior period restatements identified
also resulted in restatements of the 30 September 2019 results. The combined
impact of these adjustments on earnings and headline earnings per share for
the six months ended 30 September 2019 is an increase of 34 and 28 cents per
share respectively. Net asset value as at 30 September 2019 is increased by
R301 million to R7.7 billion.
An additional prior year error was identified relating to the 30 September
2019 results. At 30 September 2019 PPC adopted IAS 29 – Hyperinflation for
the first time. During the 31 March 2020 year-end audit, a thorough review
of the hyperinflation workings were undertaken and certain errors were
identified and corrected in the 31 March 2020 results. This prompted
management to review the 30 September 2019 workings and management noted
similar errors were present. These errors related mainly to opening retained
earnings and property, plant and equipment not being hyperinflated correctly.
The impact of these adjustment on earnings and headline earnings per share
for the six months ended 30 September 2019 is a decrease of 2 cents per share
respectively. Net asset value as at 30 September 2019 is increased by R1.2
billion to R8.9 billion.
TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020
PPC is finalising its consolidated financial results for the six months ended
30 September 2020 which will be announced on the SENS and the Company’s
website on or about 8 December 2020.
Shareholders are advised that consolidated Group revenue is expected to be
1% to 5% higher than the R4 948 million reported for the six months ended 30
September 2019 (“prior period”). EBITDA is expected to be 12 % to 17% higher
than the R868 million reported for the prior period. Basic earnings per share
(EPS) and headline earnings per share (HEPS) are expected to be between 18
and 21 cents per share, or 35% to 45%, lower than the 32 cents (restated)
reported for the prior period. The decline in EPS and HEPS is primarily due
to non-cash related items.
After a difficult start to FY21 as a result of the COVID-19 related trade
restrictions imposed by authorities in most of the jurisdictions in which
the Group operates, the Group experienced a strong recovery in cement sales
in Q2 of H1 FY 21 which contributed to the improved operating performance.
The financial information contained in this announcement has neither been
reviewed nor reported on by the Company´s external auditors.
RESTRUCTURING AND REFINANCING UPDATE
PPC continues to make good progress against key milestones in its
restructuring and refinancing project (“Project”) with the objective of
implementing a sustainable capital structure and improving the investment
prospects of the Group.
In South Africa, PPC has signed facilities agreements with its two primary
South African lenders, who provide R1.85 billion of term loan and long term
revolving credit facilities and R625 million of short term general banking
facilities. The final terms of these agreements are substantially the same
as those disclosed in note 36 to audited consolidated financial statements
for the year ended 31 March 2020. PPC is also finalising documentation
relating to the provision of security, including a security pool arrangement
comprising immovable property, debtors and inventory.
PPC has also signed revised terms with its third South African lender for a
working capital facility of R175 million, which has now removed the
requirement of being part of the security pool arrangement.
In the DRC, PPC has signed a formal standstill agreement with the DRC Lenders.
The final terms of the agreement are substantially the same as those of the
term sheet agreed at the end of August 2020, as disclosed in note 36 to
audited consolidated financial statements for the year ended 31 March 2020.
PPC is actively engaging with the DRC Lenders, who have now appointed
financial and legal advisors, on a detailed restructuring plan. PPC is
targeting agreeing the basis of the restructuring plan with the DRC Lenders
before the end of this calendar year.
Following a number of unsolicited approaches regarding PPC Lime, PPC has
decided to accelerate the sale of PPC Lime and appointed financial advisors
to manage a structured sales process of the business. PPC is targeting deal
certainty by the end of Q1 2021.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are advised to continue exercising caution when dealing in
securities of PPC until the funding arrangements with its respective lenders
are finalised and details of the proposed capital raise are published.
Sandton
2 December 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 02-12-2020 08:06:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “the Group”)
RESTATEMENT TO PRIOR PERIOD FINANCIAL RESULTS, TRADING STATEMENT,
RESTRUCTURING AND REFINANCING PROJECT UPDATE AND RENEWAL OF CAUTIONARY
ANNOUNCEMENT
RESTATEMENT TO PRIOR PERIOD FINANCIAL RESULTS
Shareholders of the Company (“Shareholders”) are referred to the
announcements on the Stock Exchange News Services (“SENS”) issued on
18 August 2020 and 30 September 2020. The Company wishes to advise
Shareholders that all the 31 March 2020 prior period restatements identified
also resulted in restatements of the 30 September 2019 results. The combined
impact of these adjustments on earnings and headline earnings per share for
the six months ended 30 September 2019 is an increase of 34 and 28 cents per
share respectively. Net asset value as at 30 September 2019 is increased by
R301 million to R7.7 billion.
An additional prior year error was identified relating to the 30 September
2019 results. At 30 September 2019 PPC adopted IAS 29 – Hyperinflation for
the first time. During the 31 March 2020 year-end audit, a thorough review
of the hyperinflation workings were undertaken and certain errors were
identified and corrected in the 31 March 2020 results. This prompted
management to review the 30 September 2019 workings and management noted
similar errors were present. These errors related mainly to opening retained
earnings and property, plant and equipment not being hyperinflated correctly.
The impact of these adjustment on earnings and headline earnings per share
for the six months ended 30 September 2019 is a decrease of 2 cents per share
respectively. Net asset value as at 30 September 2019 is increased by R1.2
billion to R8.9 billion.
TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020
PPC is finalising its consolidated financial results for the six months ended
30 September 2020 which will be announced on the SENS and the Company’s
website on or about 8 December 2020.
Shareholders are advised that consolidated Group revenue is expected to be
1% to 5% higher than the R4 948 million reported for the six months ended 30
September 2019 (“prior period”). EBITDA is expected to be 12 % to 17% higher
than the R868 million reported for the prior period. Basic earnings per share
(EPS) and headline earnings per share (HEPS) are expected to be between 18
and 21 cents per share, or 35% to 45%, lower than the 32 cents (restated)
reported for the prior period. The decline in EPS and HEPS is primarily due
to non-cash related items.
After a difficult start to FY21 as a result of the COVID-19 related trade
restrictions imposed by authorities in most of the jurisdictions in which
the Group operates, the Group experienced a strong recovery in cement sales
in Q2 of H1 FY 21 which contributed to the improved operating performance.
The financial information contained in this announcement has neither been
reviewed nor reported on by the Company´s external auditors.
RESTRUCTURING AND REFINANCING UPDATE
PPC continues to make good progress against key milestones in its
restructuring and refinancing project (“Project”) with the objective of
implementing a sustainable capital structure and improving the investment
prospects of the Group.
In South Africa, PPC has signed facilities agreements with its two primary
South African lenders, who provide R1.85 billion of term loan and long term
revolving credit facilities and R625 million of short term general banking
facilities. The final terms of these agreements are substantially the same
as those disclosed in note 36 to audited consolidated financial statements
for the year ended 31 March 2020. PPC is also finalising documentation
relating to the provision of security, including a security pool arrangement
comprising immovable property, debtors and inventory.
PPC has also signed revised terms with its third South African lender for a
working capital facility of R175 million, which has now removed the
requirement of being part of the security pool arrangement.
In the DRC, PPC has signed a formal standstill agreement with the DRC Lenders.
The final terms of the agreement are substantially the same as those of the
term sheet agreed at the end of August 2020, as disclosed in note 36 to
audited consolidated financial statements for the year ended 31 March 2020.
PPC is actively engaging with the DRC Lenders, who have now appointed
financial and legal advisors, on a detailed restructuring plan. PPC is
targeting agreeing the basis of the restructuring plan with the DRC Lenders
before the end of this calendar year.
Following a number of unsolicited approaches regarding PPC Lime, PPC has
decided to accelerate the sale of PPC Lime and appointed financial advisors
to manage a structured sales process of the business. PPC is targeting deal
certainty by the end of Q1 2021.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are advised to continue exercising caution when dealing in
securities of PPC until the funding arrangements with its respective lenders
are finalised and details of the proposed capital raise are published.
Sandton
2 December 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 02-12-2020 08:06:00
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.
Results of Annual General Meeting and change to the Board of Directors
Results of Annual General Meeting and change to the Board of Directors
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Results of Annual General Meeting (“AGM”) and change to the Board of Directors
Shareholders are hereby advised that all proposed ordinary and special resolutions
contained in the Notice of the AGM (“Notice”) dated 8 October 2020 and tabled at the
Company’s AGM held on Monday, 16 November 2020 were passed by the requisite majority of
votes cast by shareholders, except for ordinary resolution 7, as reported below:
Resolutions proposed Number of Shares Percentage Percentage Percentage
shares voted* For** Against** Abstained**
voted**
Ordinary resolution number 1.1 – 931,860,097 58.49% 99.86% 0.14% 2.26%
Appointment of Mr Roland van
Wijnen
Ordinary resolution number 1.2 – 961,915,370 60.38% 99.85% 0.15% 0.37%
Appointment of Ms Ronel van Dijk
Ordinary resolution number 2.1 – 961,861,920 60.38% 94.83% 5.17% 0.38%
Re-election of Mr Jabulani
Moleketi
Ordinary resolution number 2.2 – 961,701,020 60.37% 99.51% 0.49% 0.39%
Re-election of Ms Noluvuyo
Mkhondo
Ordinary resolution number 3.1 – 961,761,020 60.37% 95.71% 4.29% 0.38%
Appointment to ARCC – Ms
Nonkululeko Gobodo
Ordinary resolution number 3.2 – 961,761,020 60.37% 95.43% 4.57% 0.38%
Appointment to the ARCC – Ms
Noluvuyo Mkhondo
Ordinary resolution number 3.3 – 961,754,420 60.37% 95.78% 4.22% 0.38%
Appointment to ARCC – Mr Mark
Thompson
Ordinary resolution number 4 – 961,977,909 60.38% 83.53% 16.47% 0.37%
Reappointment of external auditor
Deloitte and audit partner – Mr
Patrick Ndlovu
Ordinary resolution number 5.1 – 960,992,074 60.32% 88.79% 11.21% 0.43%
Non-binding advisory vote –
remuneration policy
Ordinary resolution number 5.2 – 960,992,574 60.32% 79.63% 20.37% 0.43%
Non-binding advisory vote –
remuneration implementation
report
Ordinary resolution number 6 – To 962,034,202 60.39% 62.95% 37.05% 0.37%
place unissued shares under the
control of directors
Ordinary resolution number 7 – 962,835,243 60.44% 66.11%*** 33.89% 0.32%
General authority to issue shares
for cash
Ordinary resolution number 8 – 961,949,108 60.38% 99.78% 0.22% 0.37%
Authority to implement
resolutions
Special resolution number 1.1 - 961,693,953 60.37% 99.58% 0.42% 0.39%
Financial assistance – section 44
Special resolution number 1.2 - 961,691,953 60.37% 95.50% 4.50% 0.39%
Financial assistance – section 45
Special resolution number 2.1 - 961,810,130 60.37% 97.94% 2.06%
0.38%
Remuneration – board chair
Special resolution number 2.2 - 961,810,130 60.37% 98.89% 1.11% 0.38%
Remuneration – NED
Special resolution number 2.3 - 961,686,430 60.37% 99.80% 0.20% 0.39%
ARCC – chair
Special resolution number 2.4 - 961,685,829 60.37% 99.82% 0.18% 0.39%
ARCC – member
Special resolution number 2.5 - 961,686,430 60.37% 99.81% 0.19% 0.39%
REMCO – chair
Special resolution number 2.6 - 961,686,430 60.37% 99.82% 0.18% 0.39%
REMCO – member
Special resolution number 2.7 - 961,685,829 60.37% 99.81% 0.19% 0.39%
SETCO – chair
Special resolution number 2.8 - 961,686,430 60.37% 99.82% 0.18% 0.39%
SETCO – member
Special resolution number 2.9 - 961,686,430 60.37% 99.81% 0.19% 0.39%
NOMCO – chair
Special resolution number 2.10 - 961,686,430 60.37% 99.82% 0.18% 0.39%
NOMCO – member
Special resolution number 2.11 - 961,686,430 60.37% 99.82% 0.18% 0.39%
IC – chair
Special resolution number 2.12 - 961,686,430 60.37% 99.82% 0.18% 0.39%
IC – member
Special resolution number 2.13 - 961,686,430 60.37% 95.33% 4.67% 0.39%
Special meetings – chair
Special resolution number 2.14 - 961,686,430 60.37% 95.36% 4.64% 0.39%
Special meetings – member
Special resolution number 3 - 962,988,443 60.45% 99.85% 0.15% 0.31%
General authority to repurchase
shares
* As a percentage to the total number of PPC ordinary shares in issue
** As a percentage to the total number of shares voted at the annual general meeting
*** In terms of JSE Listing Requirement, the percentage of votes required for ordinary
resolution 7 to be adopted is at least 75%, therefore ordinary resolution 7 was not
adopted.
In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited, the
Board wishes to inform shareholders that Adv. Mojankunyane Gumbi has retired at the
Annual General Meeting. The Board, through the Nominations Committee, will be
appointing a replacement which will be announced once the process has been completed
The Board would like to thank Adv. Gumbi for her valuable contribution to the Company
and wish her all the best in her future endeavours.
Kristell Holtzhausen
Company Secretary
16 November 2020
Sponsor:
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 16-11-2020 05:43:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
Results of Annual General Meeting (“AGM”) and change to the Board of Directors
Shareholders are hereby advised that all proposed ordinary and special resolutions
contained in the Notice of the AGM (“Notice”) dated 8 October 2020 and tabled at the
Company’s AGM held on Monday, 16 November 2020 were passed by the requisite majority of
votes cast by shareholders, except for ordinary resolution 7, as reported below:
Resolutions proposed Number of Shares Percentage Percentage Percentage
shares voted* For** Against** Abstained**
voted**
Ordinary resolution number 1.1 – 931,860,097 58.49% 99.86% 0.14% 2.26%
Appointment of Mr Roland van
Wijnen
Ordinary resolution number 1.2 – 961,915,370 60.38% 99.85% 0.15% 0.37%
Appointment of Ms Ronel van Dijk
Ordinary resolution number 2.1 – 961,861,920 60.38% 94.83% 5.17% 0.38%
Re-election of Mr Jabulani
Moleketi
Ordinary resolution number 2.2 – 961,701,020 60.37% 99.51% 0.49% 0.39%
Re-election of Ms Noluvuyo
Mkhondo
Ordinary resolution number 3.1 – 961,761,020 60.37% 95.71% 4.29% 0.38%
Appointment to ARCC – Ms
Nonkululeko Gobodo
Ordinary resolution number 3.2 – 961,761,020 60.37% 95.43% 4.57% 0.38%
Appointment to the ARCC – Ms
Noluvuyo Mkhondo
Ordinary resolution number 3.3 – 961,754,420 60.37% 95.78% 4.22% 0.38%
Appointment to ARCC – Mr Mark
Thompson
Ordinary resolution number 4 – 961,977,909 60.38% 83.53% 16.47% 0.37%
Reappointment of external auditor
Deloitte and audit partner – Mr
Patrick Ndlovu
Ordinary resolution number 5.1 – 960,992,074 60.32% 88.79% 11.21% 0.43%
Non-binding advisory vote –
remuneration policy
Ordinary resolution number 5.2 – 960,992,574 60.32% 79.63% 20.37% 0.43%
Non-binding advisory vote –
remuneration implementation
report
Ordinary resolution number 6 – To 962,034,202 60.39% 62.95% 37.05% 0.37%
place unissued shares under the
control of directors
Ordinary resolution number 7 – 962,835,243 60.44% 66.11%*** 33.89% 0.32%
General authority to issue shares
for cash
Ordinary resolution number 8 – 961,949,108 60.38% 99.78% 0.22% 0.37%
Authority to implement
resolutions
Special resolution number 1.1 - 961,693,953 60.37% 99.58% 0.42% 0.39%
Financial assistance – section 44
Special resolution number 1.2 - 961,691,953 60.37% 95.50% 4.50% 0.39%
Financial assistance – section 45
Special resolution number 2.1 - 961,810,130 60.37% 97.94% 2.06%
0.38%
Remuneration – board chair
Special resolution number 2.2 - 961,810,130 60.37% 98.89% 1.11% 0.38%
Remuneration – NED
Special resolution number 2.3 - 961,686,430 60.37% 99.80% 0.20% 0.39%
ARCC – chair
Special resolution number 2.4 - 961,685,829 60.37% 99.82% 0.18% 0.39%
ARCC – member
Special resolution number 2.5 - 961,686,430 60.37% 99.81% 0.19% 0.39%
REMCO – chair
Special resolution number 2.6 - 961,686,430 60.37% 99.82% 0.18% 0.39%
REMCO – member
Special resolution number 2.7 - 961,685,829 60.37% 99.81% 0.19% 0.39%
SETCO – chair
Special resolution number 2.8 - 961,686,430 60.37% 99.82% 0.18% 0.39%
SETCO – member
Special resolution number 2.9 - 961,686,430 60.37% 99.81% 0.19% 0.39%
NOMCO – chair
Special resolution number 2.10 - 961,686,430 60.37% 99.82% 0.18% 0.39%
NOMCO – member
Special resolution number 2.11 - 961,686,430 60.37% 99.82% 0.18% 0.39%
IC – chair
Special resolution number 2.12 - 961,686,430 60.37% 99.82% 0.18% 0.39%
IC – member
Special resolution number 2.13 - 961,686,430 60.37% 95.33% 4.67% 0.39%
Special meetings – chair
Special resolution number 2.14 - 961,686,430 60.37% 95.36% 4.64% 0.39%
Special meetings – member
Special resolution number 3 - 962,988,443 60.45% 99.85% 0.15% 0.31%
General authority to repurchase
shares
* As a percentage to the total number of PPC ordinary shares in issue
** As a percentage to the total number of shares voted at the annual general meeting
*** In terms of JSE Listing Requirement, the percentage of votes required for ordinary
resolution 7 to be adopted is at least 75%, therefore ordinary resolution 7 was not
adopted.
In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited, the
Board wishes to inform shareholders that Adv. Mojankunyane Gumbi has retired at the
Annual General Meeting. The Board, through the Nominations Committee, will be
appointing a replacement which will be announced once the process has been completed
The Board would like to thank Adv. Gumbi for her valuable contribution to the Company
and wish her all the best in her future endeavours.
Kristell Holtzhausen
Company Secretary
16 November 2020
Sponsor:
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 16-11-2020 05:43:00
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.
2020/11/11
Operational update, restructuring and refinancing project update and renewal of cautionary announcement
View ArticleOperational update, restructuring and refinancing project update and renewal of cautionary announcement
Operational update, restructuring and refinancing project update and renewal of cautionary announcement
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
OPERATIONAL UPDATE, RESTRUCTURING AND REFINANCING PROJECT UPDATE AND RENEWAL OF
CAUTIONARY ANNOUNCEMENT
OPERATIONAL UPDATE – NOVEMBER 2020
As previously reported to shareholders of the Company (“Shareholders”) in the
announcement released on the Stock Exchange News Services on 9 October 2020, PPC
experienced muted sales in April and May 2020 due to the COVID-19 restrictions
imposed across most of the jurisdictions in which the group operates. A strong
recovery was experienced in PPC South Africa & Botswana from June, with double-
digit year-on-year growth in cement sales volumes since June. In the three months
July to September, cement sales volumes increased by 20% to 25% year-on-year and.
This trend has continued in October 2020 with strong cement sales volumes experienced
for the month, up 15% to 20% compared to the same period last year. These increased
volumes are primarily retail led, as increases in disposable income due to reduced
discretionary spending on other items due to reduced movement and an increase in income
due to reduced interest rates and the various social relief grants continued.
PPC has also started to experience the positive impact of increased infrastructure spending,
which it hopes will carry the strong demand once retail sales volumes return to more normalised levels.
The International operations were less affected by the COVID-19 pandemic. In
aggregate, total cement volumes sold also showed double-digit growth in June 2020
to September 2020 compared to the same period in 2019. For the first 6 months of
FY21, PPC Zimbabwe, and PPC Barnet (DRC) experienced approximately 5% to 10% volume
growth each compared to the prior comparable period. In the period July to
September 2020, sales volumes in PPC Zimbabwe and PPC Barnet increased by 35% to
40% and 20% to 25% respectively, compared to the same period in 2019. October
2020 has seen more moderate growth in cement volumes for
PPC Zimbabwe at approximately 5% compared to October 2019, whilst PPC Barnet has
continued to experience strong growth, with cement volumes up 25% to 30% compared to
October 2019. In Rwanda, CIMERWA experienced approximately 5% to 10% volume growth from
April 2020 to September 2020 compared to the same period last year, and in the
months July to September 2020 sales volumes increased by 15% to 20% year-on-year.
October 2020 cement volumes have continued to show good growth, of 25% to 30%
compared to October 2019. As highlighted in the year-end results announcement, despite the
continued positive sales momentum, the group remains cautious on the outlook for the rest of FY21
given the ongoing health crisis and its resultant impact on economic activity.
PPC’s initiatives remain focused on cash preservation, improving cost competitiveness by
lowering operational costs, positioning the business for recovery and improving internal controls
and accountability.
RESTRUCTURING AND REFINANCING UPDATE
As previously communicated to Shareholders and set out in detail in the annual
consolidated financial statements for the year ended 31 March 2020, PPC is
undertaking a restructuring and refinancing project (“Project”) with the objective
of implementing a sustainable capital structure and improving the investment
prospects of the group. PPC continues to make positive progress on the Project
with finalisation of revised facilities documentation with its South African
lenders expected this month and restructuring negotiations progressing
constructively with its DRC lenders on the basis of the term sheet and de facto
standstill agreed in September 2020. PPC is on track to test investor appetite
regarding recapitalising the International operations before the end of this
calendar year.
PPC will provide a more comprehensive update to Shareholders when it reports its
interim results, which is expected to be in early December 2020.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are advised to continue exercising caution when dealing in securities
of PPC until the funding arrangements with its respective lenders are finalised
and details of the proposed capital raise are published.
Sandton
11 November 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 11-11-2020 04:50:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company”)
OPERATIONAL UPDATE, RESTRUCTURING AND REFINANCING PROJECT UPDATE AND RENEWAL OF
CAUTIONARY ANNOUNCEMENT
OPERATIONAL UPDATE – NOVEMBER 2020
As previously reported to shareholders of the Company (“Shareholders”) in the
announcement released on the Stock Exchange News Services on 9 October 2020, PPC
experienced muted sales in April and May 2020 due to the COVID-19 restrictions
imposed across most of the jurisdictions in which the group operates. A strong
recovery was experienced in PPC South Africa & Botswana from June, with double-
digit year-on-year growth in cement sales volumes since June. In the three months
July to September, cement sales volumes increased by 20% to 25% year-on-year and.
This trend has continued in October 2020 with strong cement sales volumes experienced
for the month, up 15% to 20% compared to the same period last year. These increased
volumes are primarily retail led, as increases in disposable income due to reduced
discretionary spending on other items due to reduced movement and an increase in income
due to reduced interest rates and the various social relief grants continued.
PPC has also started to experience the positive impact of increased infrastructure spending,
which it hopes will carry the strong demand once retail sales volumes return to more normalised levels.
The International operations were less affected by the COVID-19 pandemic. In
aggregate, total cement volumes sold also showed double-digit growth in June 2020
to September 2020 compared to the same period in 2019. For the first 6 months of
FY21, PPC Zimbabwe, and PPC Barnet (DRC) experienced approximately 5% to 10% volume
growth each compared to the prior comparable period. In the period July to
September 2020, sales volumes in PPC Zimbabwe and PPC Barnet increased by 35% to
40% and 20% to 25% respectively, compared to the same period in 2019. October
2020 has seen more moderate growth in cement volumes for
PPC Zimbabwe at approximately 5% compared to October 2019, whilst PPC Barnet has
continued to experience strong growth, with cement volumes up 25% to 30% compared to
October 2019. In Rwanda, CIMERWA experienced approximately 5% to 10% volume growth from
April 2020 to September 2020 compared to the same period last year, and in the
months July to September 2020 sales volumes increased by 15% to 20% year-on-year.
October 2020 cement volumes have continued to show good growth, of 25% to 30%
compared to October 2019. As highlighted in the year-end results announcement, despite the
continued positive sales momentum, the group remains cautious on the outlook for the rest of FY21
given the ongoing health crisis and its resultant impact on economic activity.
PPC’s initiatives remain focused on cash preservation, improving cost competitiveness by
lowering operational costs, positioning the business for recovery and improving internal controls
and accountability.
RESTRUCTURING AND REFINANCING UPDATE
As previously communicated to Shareholders and set out in detail in the annual
consolidated financial statements for the year ended 31 March 2020, PPC is
undertaking a restructuring and refinancing project (“Project”) with the objective
of implementing a sustainable capital structure and improving the investment
prospects of the group. PPC continues to make positive progress on the Project
with finalisation of revised facilities documentation with its South African
lenders expected this month and restructuring negotiations progressing
constructively with its DRC lenders on the basis of the term sheet and de facto
standstill agreed in September 2020. PPC is on track to test investor appetite
regarding recapitalising the International operations before the end of this
calendar year.
PPC will provide a more comprehensive update to Shareholders when it reports its
interim results, which is expected to be in early December 2020.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are advised to continue exercising caution when dealing in securities
of PPC until the funding arrangements with its respective lenders are finalised
and details of the proposed capital raise are published.
Sandton
11 November 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 11-11-2020 04:50:00
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.
Publication of the B-BBEE Annual Compliance Report
Publication of the B-BBEE Annual Compliance Report
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
Publication of the B-BBEE Annual Compliance Report (“Compliance Report”)
The Company is pleased to notify Shareholders that the submission of the Compliance
Report in terms of section 13G(2) of the Broad-Based Black Economic Empowerment
Act, has been finalised and is available on the Company’s website at
https://www.ppc.africa/corporate/about-us/broad-based-economic-empowerment
Sandton
3 November 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
PPC:
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 03-11-2020 03:40:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
Publication of the B-BBEE Annual Compliance Report (“Compliance Report”)
The Company is pleased to notify Shareholders that the submission of the Compliance
Report in terms of section 13G(2) of the Broad-Based Black Economic Empowerment
Act, has been finalised and is available on the Company’s website at
https://www.ppc.africa/corporate/about-us/broad-based-economic-empowerment
Sandton
3 November 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
PPC:
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 03-11-2020 03:40:00
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.
2020/11/03
Notice in Terms of Section 122 of the Companies Act, Act No. 71 of 2008: Disposal of Securities by Public Investment
View ArticleNotice in Terms of Section 122 of the Companies Act, Act No. 71 of 2008: Disposal of Securities by Public Investment
Notice in Terms of Section 122 of the Companies Act, Act No. 71 of 2008: Disposal of Securities by Public Investment
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
NOTICE IN TERMS OF SECTION 122 OF THE COMPANIES ACT, ACT NO. 71 OF 2008: DISPOSAL OF
SECURITIES BY PUBLIC INVESTMENT CORPORATION SOC LIMITED (“PIC”)
In accordance with section 122(1)(b) of the Companies Act, No. 71 of 2008 and section
3.83(b) of the JSE Listings requirements, shareholders are hereby advised that PPC
has received formal notification that PIC has disposed of an interest in the ordinary
shares of the Company, such that the total of all beneficial interest in the ordinary
shares of the Company held by PIC has been reduced from 9.52% to 4.93% of the total
issued share capital of PPC.
Sandton
3 November 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
PPC:
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 03-11-2020 10:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
NOTICE IN TERMS OF SECTION 122 OF THE COMPANIES ACT, ACT NO. 71 OF 2008: DISPOSAL OF
SECURITIES BY PUBLIC INVESTMENT CORPORATION SOC LIMITED (“PIC”)
In accordance with section 122(1)(b) of the Companies Act, No. 71 of 2008 and section
3.83(b) of the JSE Listings requirements, shareholders are hereby advised that PPC
has received formal notification that PIC has disposed of an interest in the ordinary
shares of the Company, such that the total of all beneficial interest in the ordinary
shares of the Company held by PIC has been reduced from 9.52% to 4.93% of the total
issued share capital of PPC.
Sandton
3 November 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
PPC:
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 03-11-2020 10:00:00
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.
2020/10/28
Notice of disbursement of Integrated Annual Report (“IAR”) for the year ended 31 March 2020
View ArticleNotice of disbursement of Integrated Annual Report (“IAR”) for the year ended 31 March 2020
Notice of disbursement of Integrated Annual Report (“IAR”) for the year ended 31 March 2020
PPC Ltd (Incorporated in the Republic of South Africa)
Company registration number: 1892/000667/06
JSE / ZSE code: PPC
JSE ISIN: ZAE 000170049
JSE code: PPC003
JSE ISIN: ZAG000117524
(“PPC” or “Company”)
NOTICE OF DISBURSEMENT OF INTEGRATED ANNUAL REPORT (“IAR”) FOR THE YEAR ENDED
31 MARCH 2020
Shareholders of the Company (“Shareholders”) are hereby advised that the Company’s
2020 Integrated Annual Report, has been distributed to Shareholders on Wednesday,
28 October 2020.
The Integrated Annual Report incorporating the referenced supplementary reports and
the notice of AGM will also be available on the Company’s website, at
http://www.ppc.africa/corporate/investors-media/financial-presentations-reports as
from today, 27 October 2020.
28 October 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 28-10-2020 05:00:00
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.
PPC Ltd (Incorporated in the Republic of South Africa)
Company registration number: 1892/000667/06
JSE / ZSE code: PPC
JSE ISIN: ZAE 000170049
JSE code: PPC003
JSE ISIN: ZAG000117524
(“PPC” or “Company”)
NOTICE OF DISBURSEMENT OF INTEGRATED ANNUAL REPORT (“IAR”) FOR THE YEAR ENDED
31 MARCH 2020
Shareholders of the Company (“Shareholders”) are hereby advised that the Company’s
2020 Integrated Annual Report, has been distributed to Shareholders on Wednesday,
28 October 2020.
The Integrated Annual Report incorporating the referenced supplementary reports and
the notice of AGM will also be available on the Company’s website, at
http://www.ppc.africa/corporate/investors-media/financial-presentations-reports as
from today, 27 October 2020.
28 October 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 28-10-2020 05:00:00
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.
2020/10/13
Posting Notice of Annual General Meeting, No Change Statement and Publication of The B-BBEE Certificate
View ArticlePosting Notice of Annual General Meeting, No Change Statement and Publication of The B-BBEE Certificate
Posting Notice of Annual General Meeting, No Change Statement and Publication of The B-BBEE Certificate
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”, “Company” or “Group”)
POSTING NOTICE OF ANNUAL GENERAL MEETING, NO CHANGE STATEMENT AND PUBLICATION OF
THE B-BBEE CERTIFICATE
Notice of disbursement of Notice of Annual General Meeting (“AGM”) and No Change
Statement
Shareholders of the Company (“Shareholders”) are hereby advised that the Company
published its audited consolidated annual financial statements and its audited
summarised annual financial statements for the year ended 31 March 2020, on 9
October 2020. Shareholders are further advised that notice of the AGM of the
Company, together with the audited summarised annual financial statements will be
distributed to Shareholders on Tuesday, 13 October 2020. These audited summarised
annual financial statements contain no modifications to the audited abridged
financial statement published on SENS on 9 October 2020.
The notice of AGM will also be available on the Company’s website, at
http://www.ppc.africa/corporate/investors-media/financial-presentations-reports as
from today, 13 October 2020.
Notice of AGM
Notice is hereby given that a virtual AGM will be held at 12h00 on Monday,
16 November 2020, to transact the business as set out in the notice of the AGM.
The date on which Shareholders must be recorded as such in the share register of
the Company to be eligible to vote at the AGM is Friday, 6 November 2020, with the
last day to trade being Tuesday, 3 November 2020.
B-BBEE Certificate
Furthermore, the Company is pleased to notify Shareholders that the South African
operations was rated under the Amended Construction Sector Codes Gazetted 1
December 2017, and achieved a Level 4 rating. The Company’s B-BBEE certificate for
the period from October 2020 to October 2021, will also be available on the
Company’s website at https://www.ppc.africa/corporate/about-us/broad-based-
economic-empowerment
Publication of the 2020 Integrated Annual Report (“IAR”) and the B-BBEE Annual
Compliance Report (“Compliance Report”)
Shareholders are hereby notified that the IAR and the Compliance Report in terms of
section 13G(2) of the Broad-Based Black Economic Empowerment Amendment Act, No 46
of 2013 will be published on or before 31 October 2020.
13 October 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 13-10-2020 08:30:00
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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”, “Company” or “Group”)
POSTING NOTICE OF ANNUAL GENERAL MEETING, NO CHANGE STATEMENT AND PUBLICATION OF
THE B-BBEE CERTIFICATE
Notice of disbursement of Notice of Annual General Meeting (“AGM”) and No Change
Statement
Shareholders of the Company (“Shareholders”) are hereby advised that the Company
published its audited consolidated annual financial statements and its audited
summarised annual financial statements for the year ended 31 March 2020, on 9
October 2020. Shareholders are further advised that notice of the AGM of the
Company, together with the audited summarised annual financial statements will be
distributed to Shareholders on Tuesday, 13 October 2020. These audited summarised
annual financial statements contain no modifications to the audited abridged
financial statement published on SENS on 9 October 2020.
The notice of AGM will also be available on the Company’s website, at
http://www.ppc.africa/corporate/investors-media/financial-presentations-reports as
from today, 13 October 2020.
Notice of AGM
Notice is hereby given that a virtual AGM will be held at 12h00 on Monday,
16 November 2020, to transact the business as set out in the notice of the AGM.
The date on which Shareholders must be recorded as such in the share register of
the Company to be eligible to vote at the AGM is Friday, 6 November 2020, with the
last day to trade being Tuesday, 3 November 2020.
B-BBEE Certificate
Furthermore, the Company is pleased to notify Shareholders that the South African
operations was rated under the Amended Construction Sector Codes Gazetted 1
December 2017, and achieved a Level 4 rating. The Company’s B-BBEE certificate for
the period from October 2020 to October 2021, will also be available on the
Company’s website at https://www.ppc.africa/corporate/about-us/broad-based-
economic-empowerment
Publication of the 2020 Integrated Annual Report (“IAR”) and the B-BBEE Annual
Compliance Report (“Compliance Report”)
Shareholders are hereby notified that the IAR and the Compliance Report in terms of
section 13G(2) of the Broad-Based Black Economic Empowerment Amendment Act, No 46
of 2013 will be published on or before 31 October 2020.
13 October 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 13-10-2020 08:30:00
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.
2020/10/09
Short Form Announcement – Summarised Consolidated Financial Statements for the year ended 31 March 2020
View ArticleShort Form Announcement – Summarised Consolidated Financial Statements for the year ended 31 March 2020
Short Form Announcement – Summarised Consolidated Financial Statements for the year ended 31 March 2020
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”, “Company” or “Group”)
SHORT FORM ANNOUNCEMENT – SUMMARISED CONSOLIDATED FINANCIAL STATEMENTS FOR
THE YEAR ENDED 31 MARCH 2020
SALIENT FEATURES
- Group revenue: R10 241 million (March 2019: R10 494 million, restated)
- Group EBITDA: R1 604 million (March 2019: R1 946 million)
- Loss per share: 124 cents (March 2019: earnings per share 16 cents,
restated)
- Headline earnings per share: 27 cents (March 2019: 20 cents, restated)
- The Group did not declare a dividend for the current or previous year
Roland van Wijnen, chief executive officer, said:
“FY20 was characterised by difficult trading conditions, especially in South
Africa. The global COVID-19 pandemic, which emerged during the last month of
the financial year, further exacerbated an already difficult trading cycle.
We acted swiftly to implement protocols to protect our employees, improve
our competitiveness and preserve cash. While we have seen a decline in our
financial performance, we also see that the actions we have taken to
reposition PPC to deliver sustainable value for all our stakeholders are
beginning to yield results. After the resumption of trading in FY21, the
performance across all of our core businesses has been encouraging. The
Group’s capital restructuring remains a key priority. Over the next nine
months, we will take the strategic and operational actions needed to improve
the Group’s financial position and performance. It is encouraging to see how
PPC employees have come together to drive performance to sustain our purpose
to empower people to experience a better quality of life.”
GROUP PERFORMANCE
Group revenue declined by 2% to R10 241 million (March 2019: R10 494 million,
restated). Excluding Zimbabwe, revenue declined by 7% from R9 047 million
(restated) to R8 380 million, mainly due to a decline in revenues from South
Africa cement.
Cost of sales reduced by 3% to R8 248 million (March 2019: R8 487 million,
restated) compared with the previous year. Administration and other operating
expenditure increased by 16% to R1 284 million (March 2019: R1 104 million,
restated). This increase is primarily due to the impact of hyperinflation in
Zimbabwe and an increase in fees paid to consultants.
Fair value adjustments and foreign exchange movements resulted in a gain of
R151 million (March 2019: R126 million loss), mostly as a result of the
revaluation of foreign-denominated intercompany loan accounts. The
Democratic Republic of the Congo (“DRC”) put option carrying value was
reduced to zero, resulting in a remeasurement gain of R251 million for the
year. The slower than anticipated ramp-up in the DRC resulted in no capital
repayments having been made on the US dollar-denominated debt in the DRC, as
well as more conservative cash flow forecasts, resulting in the option value
being zero.
A fair value gain on the Zimbabwe financial asset of R7 million (March 2019:
R236 million) was realised after taking into account a 50% credit risk fair
value adjustment of R161 million (March 2019: R37 million, restated), while
a loss was recorded on the blocked funds of R258 million (March 2019: Rnil)
which included an 85% credit risk fair value adjustment of R332 million. The
application of International Accounting Standards (“IAS”) 29 Financial
Reporting in Hyperinflationary Economies resulted in a net monetary gain
amounting to R651 million (before tax).
Impairments before tax amounted to R3 074 million (March 2019: R76 million,
restated), of which R2 767 million relates to the impairment of property,
plant and equipment, R205 million relates to the impairment of goodwill and
R102 million to the impairment of intangible assets. The uncertainty around
the potential effects of COVID-19 on PPC’s operating performance impacted
the impairment assessments of cash-generating units, resulting in impairments
of R1 946 million in South Africa cement and readymix, and R1 128 million in
the DRC.
Finance costs decreased by 4% to R652 million (March 2019: R676 million).
South African finance costs decreased by 6% to R216 million (March 2019:
R229 million) and international finance costs decreased by 2% to R436 million
(March 2019: R447 million).
Profit attributable to shareholders of PPC Ltd reduced to a loss of R1 872
million (March 2019: R235 million, restated) while headline earnings which
exclude the impact of impairments and other capital items increased to R406
million (March 2019: R300 million, restated). Earnings per share reduced to
a loss of 124 cents (March 2019: 16 cents, restated) and headline earnings
per share increased to 27 cents per share (March 2019: 20 cents, restated).
Cash available from operations decreased by R794 million, from R1 257 million
to R463 million. The decrease in cash generated from operations is primarily
due to the reduction in EBITDA from R1 946 million to R1 604 million, the
stockpiling of strategic inventories, accumulation of critical spares, and
the impact of hyperinflation in Zimbabwe on inventory balances. Trade
receivables were negatively impacted by delays in payments from customers as
businesses in the construction sector focused on cash preservation during
the lockdown in the regions we operate. Trade payables were also affected by
capex retention payments of US$2,8 million in the DRC, as well as payments
made to suppliers in FY20 as part of negotiations to extend payment terms.
Cash preservation is a major focus area in the coming financial year.
Capital investments in property, plant and equipment decreased by 16% to
R650 million (March 2019: R773 million).
Gross debt increased from R5 002 million in March 2019 to R5 800 million at
the end of March 2020. The currency impact on international debt was to
increase the reported gross debt by R638 million.
CEMENT SOUTH AFRICA AND BOTSWANA
PPC is the leading supplier of cement in these markets with an extensive
footprint and distribution network. With our three mega plants strategy, we
focus on improving cost competitiveness by supplying products to customers
from the three largest and most efficient plants in our portfolio.
Realised average selling prices for South Africa increased by 8% to 10% as
the business continued with its drive to increase cement prices to recover
operational costs and improve returns. Cement volu mes declined by 15% to
20%, with the coastal regions experiencing a smaller decline. We estimate
that the South African cement industry declined by 7% to 10% for the period,
driven by muted demand. The construction sector which accounts for a
substantial proportion of PPC Cement sales was weaker than the overall
market. Retail demand, however, was supported by activity in the DIY market.
Imports and blender activity further exacerbated the competitive environment,
with cement imports increasing by 36% to 1,3 million tonnes from April 2019
to March 2020, compared with the previous year. In conjunction with The
Concrete Institute (TCI), PPC and other industry players submitted an
application to the International Trade Administration Commission (ITAC),
highlighting the impact of imports on domestic cement production. PPC
continues to engage with the relevant authorities to ensure that non-
conforming cement is not sold to the public to reduce the risk of collapsing
structures.
Revenue in South Africa and Botswana declined by 11% to R4 843 million (March
2019: R5 431 million). The reduction in revenue, coupled with a reduced
ability to absorb fixed costs from the decline in volumes, resulted in EBITDA
contracting by 36% to R613 million (March 2019: R957 million) an d margins
declining from 17,6% to 12,7%.
MATERIALS BUSINESS
Aggregates, ready-mix and ash
Revenue decreased by 11% to R1 178 million (March 2019: R1 318 million),
primarily as a result of reduced volumes in the aggregates division due to
weak demand in the construction industry. EBITDA increased by 18% to
R20 million (March 2019: R17 million) due to improved cost management.
Lime
The lime division’s revenue declined by 2% to R816 million (March 2019:
R834 million) with volumes and pricing under pressure due to the decline in
steel-related activity. EBITDA contracted by 11% to R110 million (March 2019:
R123 million) due to lower volumes and higher input costs.
INTERNATIONAL
The international operations hold leading positions in their respective
markets and, despite challenging trading conditions in some markets, the
businesses are well positioned to deliver sustainable value for stakeholders
over the medium term. Shorter term, our focus is to optimise the businesses
to enhance competitiveness and improve the quality of the products offered
to customers.
Zimbabwe
Trading conditions in Zimbabwe were characterised by weak demand, unstable
power supply, and a shortage of foreign currency. PPC Zimbabwe continues to
supply quality products to its customers while remaining financially self-
sufficient.
PPC Zimbabwe also secured supply contracts for a substantial proportion of
the large infrastructure projects in Zimbabwe, in hard currency, which
assisted in alleviating some of the volume declines in the other segments of
the market. The cost base was also restructured to match demand.
Cement volumes declined by 15% to 20% in a market that contracted by a similar
percentage. Cement pricing was adjusted to account for the increase in
inflation and the devaluation of the local currency. Revenue increased by
29% to R1 861 million (March 2019: R1 447 million) and EBITDA grew by 53% to
R707 million (March 2019: R461 million). EBITDA margins improved to 38,0%,
versus 31,9% in March 2019 aided by higher selling prices and lower cost.
PPC Zimbabwe continues to meet its debt obligations.
Rwanda
In Rwanda, CIMERWA benefited from robust cement demand, driven by large
infrastructure projects, growth in the retail market and export demand in
the eastern DRC.
CIMERWA achieved revenue growth of 6% to R936 million (March 2019: R885
million) due to increases in pricing and volumes. EBITDA declined by 8% to
R226 million (March 2019: R246 million) because of higher operational costs
incurred to improve the output of the plant and the lockdown imposed by the
authorities. The plant is expected to reach nominal capacity in the next 18
months.
DRC
PPC Barnet in the DRC achieved revenue growth of 5% to R607 million (March
2019: R579 million, restated), driven by higher pricing and translation
gains. PPC estimates that market demand increased by 4% to 8%; however, this
was offset by an increase in imports from neighbouring countries. Cement
producers in the DRC continue to lobby the authorities to increase the
enforcement of existing laws banning the importation of cement into the DRC.
The business generated EBITDA of R94 million (March 2019: R108 million.
EBITDA in FY20 includes management fees not previously charged, as well as
a once-off write-off of development costs. Excluding these items, EBITDA
improved on last year. The business is in the process of restructuring its
debt.
OUTLOOK
PPC´s cement operations ramped up in May 2020 post the COVID-19 restrictions
imposed at the end of March 2020 across most of the jurisdictions in which
the Group operates. Over the first six months of FY21 (April – Sept) South
Africa & Botswana cement sales volumes declined by 5% to 10% year-on-year
due to the impact of the lockdown. Following a strong recovery, Cement South
Africa & Botswana experienced double-digit year-on-year growth in sales
volumes since June. In the last three months (July – Sept) Cement South
Africa & Botswana cement sales volumes increased by 20% to 25% year-on-year.
The International operations were less affected by the COVID -19 pandemic. In
aggregate, total cement volumes sold also showed strong growth in June 2020
to September 2020 compared to the same period in 2019. For the first 6 months
of FY21, PPC Zimbabwe and PPC Barnet (DRC) experienced 5% to 10% volume
growth each compared to the prior comparable period. In the last three months
(July – September) sales volumes in PPC Zimbabwe and PPC Barnet (DRC)
increased by 35% to 40% and 20% to 25% respectively, compared to the period
July to September in 2019. In Rwanda, CIMERWA experienced approximately 5%
to 10% sales volume growth from April 2020 to September 2020 compared to the
same period last year. In the last three months (July to September 2020),
sales volumes increased by 15% to 20% year-on-year.
Despite the positive sales momentum, the Group remains cautious on the
outlook for the rest of FY21 given the ongoing health crisis and its resultant
impact on economic activity. PPC will remain focused on ca sh preservation,
improving cost competitiveness by lowering operational costs, and positioning
the business for recovery. Whilst remaining cautious regarding prospects,
PPC remains hopeful that the commitment of the South African government to
an infrastructure investment led economic recovery will lead to increased
cement consumption. If this is the case, PPC, with its national production
and logistical footprint, is very well placed to benefit from such an
increase.
To strengthen the Group’s balance sheet and improve the investment prospects
of PPC, the Group has embarked on a detailed refinancing and restructuring
project, which will ensure that the Group is sustainably capitalised and
self-sufficient on a standalone basis across the regions whe re it operates.
This will be implemented over the course of FY21. Refer to note 36 of the
audited consolidated financial statements.
AUDIT OPINION
The Audited Financial Statements were audited by Deloitte & Touche, who
expressed an unmodified audit opinion, highlighting certain key audit matters
and an emphasis of matter around a material uncertainty relating to the going
concern assumption in their report. A copy of the auditor’s report on the
consolidated financial statements, together with the con solidated financial
statements, is available on the following link:
www.ppc.africa/corporate/investorsmedia/financial-presentations-report.
SHORT FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors. This is
a summary of the information contained in the audited financial results
announcement (“full announcement”) and does not contain full or complete
details. This announcement is extracted from audited results but is itself
not audited.
The full announcement can be accessed using the following JSE link:
https://senspdf.jse.co.za/documents/2020/jse/isse/PPC/FY20Result.pdf
Any investment decisions by investors and/or shareholders should be based
on consideration of the full announcement published today, Friday 9 October
2020, on the company's website at
www.ppc.africa/corporate/investorsmedia/financial-presentations-report
A copy of the full announcement is also available for inspection at the
company's registered office (by appointment, observing COVID-19
restrictions), and may be requested from the Company Secretary Kristell
Holtzhausen at Kristell.holtzhausen@ppc.co.za at no charge, weekdays during
office hours.
A live and recorded video webcast of the results presentation will be held
today at 11:00am and can be accessed via this link:
https://www.corpcam.com/PPCFY20
Sandton
9 October 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 09-10-2020 05:15:00
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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”, “Company” or “Group”)
SHORT FORM ANNOUNCEMENT – SUMMARISED CONSOLIDATED FINANCIAL STATEMENTS FOR
THE YEAR ENDED 31 MARCH 2020
SALIENT FEATURES
- Group revenue: R10 241 million (March 2019: R10 494 million, restated)
- Group EBITDA: R1 604 million (March 2019: R1 946 million)
- Loss per share: 124 cents (March 2019: earnings per share 16 cents,
restated)
- Headline earnings per share: 27 cents (March 2019: 20 cents, restated)
- The Group did not declare a dividend for the current or previous year
Roland van Wijnen, chief executive officer, said:
“FY20 was characterised by difficult trading conditions, especially in South
Africa. The global COVID-19 pandemic, which emerged during the last month of
the financial year, further exacerbated an already difficult trading cycle.
We acted swiftly to implement protocols to protect our employees, improve
our competitiveness and preserve cash. While we have seen a decline in our
financial performance, we also see that the actions we have taken to
reposition PPC to deliver sustainable value for all our stakeholders are
beginning to yield results. After the resumption of trading in FY21, the
performance across all of our core businesses has been encouraging. The
Group’s capital restructuring remains a key priority. Over the next nine
months, we will take the strategic and operational actions needed to improve
the Group’s financial position and performance. It is encouraging to see how
PPC employees have come together to drive performance to sustain our purpose
to empower people to experience a better quality of life.”
GROUP PERFORMANCE
Group revenue declined by 2% to R10 241 million (March 2019: R10 494 million,
restated). Excluding Zimbabwe, revenue declined by 7% from R9 047 million
(restated) to R8 380 million, mainly due to a decline in revenues from South
Africa cement.
Cost of sales reduced by 3% to R8 248 million (March 2019: R8 487 million,
restated) compared with the previous year. Administration and other operating
expenditure increased by 16% to R1 284 million (March 2019: R1 104 million,
restated). This increase is primarily due to the impact of hyperinflation in
Zimbabwe and an increase in fees paid to consultants.
Fair value adjustments and foreign exchange movements resulted in a gain of
R151 million (March 2019: R126 million loss), mostly as a result of the
revaluation of foreign-denominated intercompany loan accounts. The
Democratic Republic of the Congo (“DRC”) put option carrying value was
reduced to zero, resulting in a remeasurement gain of R251 million for the
year. The slower than anticipated ramp-up in the DRC resulted in no capital
repayments having been made on the US dollar-denominated debt in the DRC, as
well as more conservative cash flow forecasts, resulting in the option value
being zero.
A fair value gain on the Zimbabwe financial asset of R7 million (March 2019:
R236 million) was realised after taking into account a 50% credit risk fair
value adjustment of R161 million (March 2019: R37 million, restated), while
a loss was recorded on the blocked funds of R258 million (March 2019: Rnil)
which included an 85% credit risk fair value adjustment of R332 million. The
application of International Accounting Standards (“IAS”) 29 Financial
Reporting in Hyperinflationary Economies resulted in a net monetary gain
amounting to R651 million (before tax).
Impairments before tax amounted to R3 074 million (March 2019: R76 million,
restated), of which R2 767 million relates to the impairment of property,
plant and equipment, R205 million relates to the impairment of goodwill and
R102 million to the impairment of intangible assets. The uncertainty around
the potential effects of COVID-19 on PPC’s operating performance impacted
the impairment assessments of cash-generating units, resulting in impairments
of R1 946 million in South Africa cement and readymix, and R1 128 million in
the DRC.
Finance costs decreased by 4% to R652 million (March 2019: R676 million).
South African finance costs decreased by 6% to R216 million (March 2019:
R229 million) and international finance costs decreased by 2% to R436 million
(March 2019: R447 million).
Profit attributable to shareholders of PPC Ltd reduced to a loss of R1 872
million (March 2019: R235 million, restated) while headline earnings which
exclude the impact of impairments and other capital items increased to R406
million (March 2019: R300 million, restated). Earnings per share reduced to
a loss of 124 cents (March 2019: 16 cents, restated) and headline earnings
per share increased to 27 cents per share (March 2019: 20 cents, restated).
Cash available from operations decreased by R794 million, from R1 257 million
to R463 million. The decrease in cash generated from operations is primarily
due to the reduction in EBITDA from R1 946 million to R1 604 million, the
stockpiling of strategic inventories, accumulation of critical spares, and
the impact of hyperinflation in Zimbabwe on inventory balances. Trade
receivables were negatively impacted by delays in payments from customers as
businesses in the construction sector focused on cash preservation during
the lockdown in the regions we operate. Trade payables were also affected by
capex retention payments of US$2,8 million in the DRC, as well as payments
made to suppliers in FY20 as part of negotiations to extend payment terms.
Cash preservation is a major focus area in the coming financial year.
Capital investments in property, plant and equipment decreased by 16% to
R650 million (March 2019: R773 million).
Gross debt increased from R5 002 million in March 2019 to R5 800 million at
the end of March 2020. The currency impact on international debt was to
increase the reported gross debt by R638 million.
CEMENT SOUTH AFRICA AND BOTSWANA
PPC is the leading supplier of cement in these markets with an extensive
footprint and distribution network. With our three mega plants strategy, we
focus on improving cost competitiveness by supplying products to customers
from the three largest and most efficient plants in our portfolio.
Realised average selling prices for South Africa increased by 8% to 10% as
the business continued with its drive to increase cement prices to recover
operational costs and improve returns. Cement volu mes declined by 15% to
20%, with the coastal regions experiencing a smaller decline. We estimate
that the South African cement industry declined by 7% to 10% for the period,
driven by muted demand. The construction sector which accounts for a
substantial proportion of PPC Cement sales was weaker than the overall
market. Retail demand, however, was supported by activity in the DIY market.
Imports and blender activity further exacerbated the competitive environment,
with cement imports increasing by 36% to 1,3 million tonnes from April 2019
to March 2020, compared with the previous year. In conjunction with The
Concrete Institute (TCI), PPC and other industry players submitted an
application to the International Trade Administration Commission (ITAC),
highlighting the impact of imports on domestic cement production. PPC
continues to engage with the relevant authorities to ensure that non-
conforming cement is not sold to the public to reduce the risk of collapsing
structures.
Revenue in South Africa and Botswana declined by 11% to R4 843 million (March
2019: R5 431 million). The reduction in revenue, coupled with a reduced
ability to absorb fixed costs from the decline in volumes, resulted in EBITDA
contracting by 36% to R613 million (March 2019: R957 million) an d margins
declining from 17,6% to 12,7%.
MATERIALS BUSINESS
Aggregates, ready-mix and ash
Revenue decreased by 11% to R1 178 million (March 2019: R1 318 million),
primarily as a result of reduced volumes in the aggregates division due to
weak demand in the construction industry. EBITDA increased by 18% to
R20 million (March 2019: R17 million) due to improved cost management.
Lime
The lime division’s revenue declined by 2% to R816 million (March 2019:
R834 million) with volumes and pricing under pressure due to the decline in
steel-related activity. EBITDA contracted by 11% to R110 million (March 2019:
R123 million) due to lower volumes and higher input costs.
INTERNATIONAL
The international operations hold leading positions in their respective
markets and, despite challenging trading conditions in some markets, the
businesses are well positioned to deliver sustainable value for stakeholders
over the medium term. Shorter term, our focus is to optimise the businesses
to enhance competitiveness and improve the quality of the products offered
to customers.
Zimbabwe
Trading conditions in Zimbabwe were characterised by weak demand, unstable
power supply, and a shortage of foreign currency. PPC Zimbabwe continues to
supply quality products to its customers while remaining financially self-
sufficient.
PPC Zimbabwe also secured supply contracts for a substantial proportion of
the large infrastructure projects in Zimbabwe, in hard currency, which
assisted in alleviating some of the volume declines in the other segments of
the market. The cost base was also restructured to match demand.
Cement volumes declined by 15% to 20% in a market that contracted by a similar
percentage. Cement pricing was adjusted to account for the increase in
inflation and the devaluation of the local currency. Revenue increased by
29% to R1 861 million (March 2019: R1 447 million) and EBITDA grew by 53% to
R707 million (March 2019: R461 million). EBITDA margins improved to 38,0%,
versus 31,9% in March 2019 aided by higher selling prices and lower cost.
PPC Zimbabwe continues to meet its debt obligations.
Rwanda
In Rwanda, CIMERWA benefited from robust cement demand, driven by large
infrastructure projects, growth in the retail market and export demand in
the eastern DRC.
CIMERWA achieved revenue growth of 6% to R936 million (March 2019: R885
million) due to increases in pricing and volumes. EBITDA declined by 8% to
R226 million (March 2019: R246 million) because of higher operational costs
incurred to improve the output of the plant and the lockdown imposed by the
authorities. The plant is expected to reach nominal capacity in the next 18
months.
DRC
PPC Barnet in the DRC achieved revenue growth of 5% to R607 million (March
2019: R579 million, restated), driven by higher pricing and translation
gains. PPC estimates that market demand increased by 4% to 8%; however, this
was offset by an increase in imports from neighbouring countries. Cement
producers in the DRC continue to lobby the authorities to increase the
enforcement of existing laws banning the importation of cement into the DRC.
The business generated EBITDA of R94 million (March 2019: R108 million.
EBITDA in FY20 includes management fees not previously charged, as well as
a once-off write-off of development costs. Excluding these items, EBITDA
improved on last year. The business is in the process of restructuring its
debt.
OUTLOOK
PPC´s cement operations ramped up in May 2020 post the COVID-19 restrictions
imposed at the end of March 2020 across most of the jurisdictions in which
the Group operates. Over the first six months of FY21 (April – Sept) South
Africa & Botswana cement sales volumes declined by 5% to 10% year-on-year
due to the impact of the lockdown. Following a strong recovery, Cement South
Africa & Botswana experienced double-digit year-on-year growth in sales
volumes since June. In the last three months (July – Sept) Cement South
Africa & Botswana cement sales volumes increased by 20% to 25% year-on-year.
The International operations were less affected by the COVID -19 pandemic. In
aggregate, total cement volumes sold also showed strong growth in June 2020
to September 2020 compared to the same period in 2019. For the first 6 months
of FY21, PPC Zimbabwe and PPC Barnet (DRC) experienced 5% to 10% volume
growth each compared to the prior comparable period. In the last three months
(July – September) sales volumes in PPC Zimbabwe and PPC Barnet (DRC)
increased by 35% to 40% and 20% to 25% respectively, compared to the period
July to September in 2019. In Rwanda, CIMERWA experienced approximately 5%
to 10% sales volume growth from April 2020 to September 2020 compared to the
same period last year. In the last three months (July to September 2020),
sales volumes increased by 15% to 20% year-on-year.
Despite the positive sales momentum, the Group remains cautious on the
outlook for the rest of FY21 given the ongoing health crisis and its resultant
impact on economic activity. PPC will remain focused on ca sh preservation,
improving cost competitiveness by lowering operational costs, and positioning
the business for recovery. Whilst remaining cautious regarding prospects,
PPC remains hopeful that the commitment of the South African government to
an infrastructure investment led economic recovery will lead to increased
cement consumption. If this is the case, PPC, with its national production
and logistical footprint, is very well placed to benefit from such an
increase.
To strengthen the Group’s balance sheet and improve the investment prospects
of PPC, the Group has embarked on a detailed refinancing and restructuring
project, which will ensure that the Group is sustainably capitalised and
self-sufficient on a standalone basis across the regions whe re it operates.
This will be implemented over the course of FY21. Refer to note 36 of the
audited consolidated financial statements.
AUDIT OPINION
The Audited Financial Statements were audited by Deloitte & Touche, who
expressed an unmodified audit opinion, highlighting certain key audit matters
and an emphasis of matter around a material uncertainty relating to the going
concern assumption in their report. A copy of the auditor’s report on the
consolidated financial statements, together with the con solidated financial
statements, is available on the following link:
www.ppc.africa/corporate/investorsmedia/financial-presentations-report.
SHORT FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors. This is
a summary of the information contained in the audited financial results
announcement (“full announcement”) and does not contain full or complete
details. This announcement is extracted from audited results but is itself
not audited.
The full announcement can be accessed using the following JSE link:
https://senspdf.jse.co.za/documents/2020/jse/isse/PPC/FY20Result.pdf
Any investment decisions by investors and/or shareholders should be based
on consideration of the full announcement published today, Friday 9 October
2020, on the company's website at
www.ppc.africa/corporate/investorsmedia/financial-presentations-report
A copy of the full announcement is also available for inspection at the
company's registered office (by appointment, observing COVID-19
restrictions), and may be requested from the Company Secretary Kristell
Holtzhausen at Kristell.holtzhausen@ppc.co.za at no charge, weekdays during
office hours.
A live and recorded video webcast of the results presentation will be held
today at 11:00am and can be accessed via this link:
https://www.corpcam.com/PPCFY20
Sandton
9 October 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 09-10-2020 05:15:00
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.
2020/10/09
Short Form Announcement – Summarised Consolidated Financial Statements for the year ended 31 March 2020
View ArticleShort Form Announcement – Summarised Consolidated Financial Statements for the year ended 31 March 2020
Short Form Announcement – Summarised Consolidated Financial Statements for the year ended 31 March 2020
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”, “Company” or “Group”)
SHORT FORM ANNOUNCEMENT – SUMMARISED CONSOLIDATED FINANCIAL STATEMENTS FOR
THE YEAR ENDED 31 MARCH 2020
SALIENT FEATURES
- Group revenue: R10 241 million (March 2019: R10 494 million, restated)
- Group EBITDA: R1 604 million (March 2019: R1 946 million)
- Loss per share: 124 cents (March 2019: earnings per share 16 cents,
restated)
- Headline earnings per share: 27 cents (March 2019: 20 cents, restated)
- The Group did not declare a dividend for the current or previous year
Roland van Wijnen, chief executive officer, said:
“FY20 was characterised by difficult trading conditions, especially in South
Africa. The global COVID-19 pandemic, which emerged during the last month of
the financial year, further exacerbated an already difficult trading cycle.
We acted swiftly to implement protocols to protect our employees, improve
our competitiveness and preserve cash. While we have seen a decline in our
financial performance, we also see that the actions we have taken to
reposition PPC to deliver sustainable value for all our stakeholders are
beginning to yield results. After the resumption of trading in FY21, the
performance across all of our core businesses has been encouraging. The
Group’s capital restructuring remains a key priority. Over the next nine
months, we will take the strategic and operational actions needed to improve
the Group’s financial position and performance. It is encouraging to see how
PPC employees have come together to drive performance to sustain our purpose
to empower people to experience a better quality of life.”
GROUP PERFORMANCE
Group revenue declined by 2% to R10 241 million (March 2019: R10 494 million,
restated). Excluding Zimbabwe, revenue declined by 7% from R9 047 million
(restated) to R8 380 million, mainly due to a decline in revenues from South
Africa cement.
Cost of sales reduced by 3% to R8 248 million (March 2019: R8 487 million,
restated) compared with the previous year. Administration and other operating
expenditure increased by 16% to R1 284 million (March 2019: R1 104 million,
restated). This increase is primarily due to the impact of hyperinflation in
Zimbabwe and an increase in fees paid to consultants.
Fair value adjustments and foreign exchange movements resulted in a gain of
R151 million (March 2019: R126 million loss), mostly as a result of the
revaluation of foreign-denominated intercompany loan accounts. The
Democratic Republic of the Congo (“DRC”) put option carrying value was
reduced to zero, resulting in a remeasurement gain of R251 million for the
year. The slower than anticipated ramp-up in the DRC resulted in no capital
repayments having been made on the US dollar-denominated debt in the DRC, as
well as more conservative cash flow forecasts, resulting in the option value
being zero.
A fair value gain on the Zimbabwe financial asset of R7 million (March 2019:
R236 million) was realised after taking into account a 50% credit risk fair
value adjustment of R161 million (March 2019: R37 million, restated), while
a loss was recorded on the blocked funds of R258 million (March 2019: Rnil)
which included an 85% credit risk fair value adjustment of R332 million. The
application of International Accounting Standards (“IAS”) 29 Financial
Reporting in Hyperinflationary Economies resulted in a net monetary gain
amounting to R651 million (before tax).
Impairments before tax amounted to R3 074 million (March 2019: R76 million,
restated), of which R2 767 million relates to the impairment of property,
plant and equipment, R205 million relates to the impairment of goodwill and
R102 million to the impairment of intangible assets. The uncertainty around
the potential effects of COVID-19 on PPC’s operating performance impacted
the impairment assessments of cash-generating units, resulting in impairments
of R1 946 million in South Africa cement and readymix, and R1 128 million in
the DRC.
Finance costs decreased by 4% to R652 million (March 2019: R676 million).
South African finance costs decreased by 6% to R216 million (March 2019:
R229 million) and international finance costs decreased by 2% to R436 million
(March 2019: R447 million).
Profit attributable to shareholders of PPC Ltd reduced to a loss of R1 872
million (March 2019: R235 million, restated) while headline earnings which
exclude the impact of impairments and other capital items increased to R406
million (March 2019: R300 million, restated). Earnings per share reduced to
a loss of 124 cents (March 2019: 16 cents, restated) and headline earnings
per share increased to 27 cents per share (March 2019: 20 cents, restated).
Cash available from operations decreased by R794 million, from R1 257 million
to R463 million. The decrease in cash generated from operations is primarily
due to the reduction in EBITDA from R1 946 million to R1 604 million, the
stockpiling of strategic inventories, accumulation of critical spares, and
the impact of hyperinflation in Zimbabwe on inventory balances. Trade
receivables were negatively impacted by delays in payments from customers as
businesses in the construction sector focused on cash preservation during
the lockdown in the regions we operate. Trade payables were also affected by
capex retention payments of US$2,8 million in the DRC, as well as payments
made to suppliers in FY20 as part of negotiations to extend payment terms.
Cash preservation is a major focus area in the coming financial year.
Capital investments in property, plant and equipment decreased by 16% to
R650 million (March 2019: R773 million).
Gross debt increased from R5 002 million in March 2019 to R5 800 million at
the end of March 2020. The currency impact on international debt was to
increase the reported gross debt by R638 million.
CEMENT SOUTH AFRICA AND BOTSWANA
PPC is the leading supplier of cement in these markets with an extensive
footprint and distribution network. With our three mega plants strategy, we
focus on improving cost competitiveness by supplying products to customers
from the three largest and most efficient plants in our portfolio.
Realised average selling prices for South Africa increased by 8% to 10% as
the business continued with its drive to increase cement prices to recover
operational costs and improve returns. Cement volu mes declined by 15% to
20%, with the coastal regions experiencing a smaller decline. We estimate
that the South African cement industry declined by 7% to 10% for the period,
driven by muted demand. The construction sector which accounts for a
substantial proportion of PPC Cement sales was weaker than the overall
market. Retail demand, however, was supported by activity in the DIY market.
Imports and blender activity further exacerbated the competitive environment,
with cement imports increasing by 36% to 1,3 million tonnes from April 2019
to March 2020, compared with the previous year. In conjunction with The
Concrete Institute (TCI), PPC and other industry players submitted an
application to the International Trade Administration Commission (ITAC),
highlighting the impact of imports on domestic cement production. PPC
continues to engage with the relevant authorities to ensure that non-
conforming cement is not sold to the public to reduce the risk of collapsing
structures.
Revenue in South Africa and Botswana declined by 11% to R4 843 million (March
2019: R5 431 million). The reduction in revenue, coupled with a reduced
ability to absorb fixed costs from the decline in volumes, resulted in EBITDA
contracting by 36% to R613 million (March 2019: R957 million) an d margins
declining from 17,6% to 12,7%.
MATERIALS BUSINESS
Aggregates, ready-mix and ash
Revenue decreased by 11% to R1 178 million (March 2019: R1 318 million),
primarily as a result of reduced volumes in the aggregates division due to
weak demand in the construction industry. EBITDA increased by 18% to
R20 million (March 2019: R17 million) due to improved cost management.
Lime
The lime division’s revenue declined by 2% to R816 million (March 2019:
R834 million) with volumes and pricing under pressure due to the decline in
steel-related activity. EBITDA contracted by 11% to R110 million (March 2019:
R123 million) due to lower volumes and higher input costs.
INTERNATIONAL
The international operations hold leading positions in their respective
markets and, despite challenging trading conditions in some markets, the
businesses are well positioned to deliver sustainable value for stakeholders
over the medium term. Shorter term, our focus is to optimise the businesses
to enhance competitiveness and improve the quality of the products offered
to customers.
Zimbabwe
Trading conditions in Zimbabwe were characterised by weak demand, unstable
power supply, and a shortage of foreign currency. PPC Zimbabwe continues to
supply quality products to its customers while remaining financially self-
sufficient.
PPC Zimbabwe also secured supply contracts for a substantial proportion of
the large infrastructure projects in Zimbabwe, in hard currency, which
assisted in alleviating some of the volume declines in the other segments of
the market. The cost base was also restructured to match demand.
Cement volumes declined by 15% to 20% in a market that contracted by a similar
percentage. Cement pricing was adjusted to account for the increase in
inflation and the devaluation of the local currency. Revenue increased by
29% to R1 861 million (March 2019: R1 447 million) and EBITDA grew by 53% to
R707 million (March 2019: R461 million). EBITDA margins improved to 38,0%,
versus 31,9% in March 2019 aided by higher selling prices and lower cost.
PPC Zimbabwe continues to meet its debt obligations.
Rwanda
In Rwanda, CIMERWA benefited from robust cement demand, driven by large
infrastructure projects, growth in the retail market and export demand in
the eastern DRC.
CIMERWA achieved revenue growth of 6% to R936 million (March 2019: R885
million) due to increases in pricing and volumes. EBITDA declined by 8% to
R226 million (March 2019: R246 million) because of higher operational costs
incurred to improve the output of the plant and the lockdown imposed by the
authorities. The plant is expected to reach nominal capacity in the next 18
months.
DRC
PPC Barnet in the DRC achieved revenue growth of 5% to R607 million (March
2019: R579 million, restated), driven by higher pricing and translation
gains. PPC estimates that market demand increased by 4% to 8%; however, this
was offset by an increase in imports from neighbouring countries. Cement
producers in the DRC continue to lobby the authorities to increase the
enforcement of existing laws banning the importation of cement into the DRC.
The business generated EBITDA of R94 million (March 2019: R108 million.
EBITDA in FY20 includes management fees not previously charged, as well as
a once-off write-off of development costs. Excluding these items, EBITDA
improved on last year. The business is in the process of restructuring its
debt.
OUTLOOK
PPC´s cement operations ramped up in May 2020 post the COVID-19 restrictions
imposed at the end of March 2020 across most of the jurisdictions in which
the Group operates. Over the first six months of FY21 (April – Sept) South
Africa & Botswana cement sales volumes declined by 5% to 10% year-on-year
due to the impact of the lockdown. Following a strong recovery, Cement South
Africa & Botswana experienced double-digit year-on-year growth in sales
volumes since June. In the last three months (July – Sept) Cement South
Africa & Botswana cement sales volumes increased by 20% to 25% year-on-year.
The International operations were less affected by the COVID -19 pandemic. In
aggregate, total cement volumes sold also showed strong growth in June 2020
to September 2020 compared to the same period in 2019. For the first 6 months
of FY21, PPC Zimbabwe and PPC Barnet (DRC) experienced 5% to 10% volume
growth each compared to the prior comparable period. In the last three months
(July – September) sales volumes in PPC Zimbabwe and PPC Barnet (DRC)
increased by 35% to 40% and 20% to 25% respectively, compared to the period
July to September in 2019. In Rwanda, CIMERWA experienced approximately 5%
to 10% sales volume growth from April 2020 to September 2020 compared to the
same period last year. In the last three months (July to September 2020),
sales volumes increased by 15% to 20% year-on-year.
Despite the positive sales momentum, the Group remains cautious on the
outlook for the rest of FY21 given the ongoing health crisis and its resultant
impact on economic activity. PPC will remain focused on ca sh preservation,
improving cost competitiveness by lowering operational costs, and positioning
the business for recovery. Whilst remaining cautious regarding prospects,
PPC remains hopeful that the commitment of the South African government to
an infrastructure investment led economic recovery will lead to increased
cement consumption. If this is the case, PPC, with its national production
and logistical footprint, is very well placed to benefit from such an
increase.
To strengthen the Group’s balance sheet and improve the investment prospects
of PPC, the Group has embarked on a detailed refinancing and restructuring
project, which will ensure that the Group is sustainably capitalised and
self-sufficient on a standalone basis across the regions whe re it operates.
This will be implemented over the course of FY21. Refer to note 36 of the
audited consolidated financial statements.
AUDIT OPINION
The Audited Financial Statements were audited by Deloitte & Touche, who
expressed an unmodified audit opinion, highlighting certain key audit matters
and an emphasis of matter around a material uncertainty relating to the going
concern assumption in their report. A copy of the auditor’s report on the
consolidated financial statements, together with the con solidated financial
statements, is available on the following link:
www.ppc.africa/corporate/investorsmedia/financial-presentations-report.
SHORT FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors. This is
a summary of the information contained in the audited financial results
announcement (“full announcement”) and does not contain full or complete
details. This announcement is extracted from audited results but is itself
not audited.
The full announcement can be accessed using the following JSE link:
https://senspdf.jse.co.za/documents/2020/jse/isse/PPC/FY20Result.pdf
Any investment decisions by investors and/or shareholders should be based
on consideration of the full announcement published today, Friday 9 October
2020, on the company's website at
www.ppc.africa/corporate/investorsmedia/financial-presentations-report
A copy of the full announcement is also available for inspection at the
company's registered office (by appointment, observing COVID-19
restrictions), and may be requested from the Company Secretary Kristell
Holtzhausen at Kristell.holtzhausen@ppc.co.za at no charge, weekdays during
office hours.
A live and recorded video webcast of the results presentation will be held
today at 11:00am and can be accessed via this link:
https://www.corpcam.com/PPCFY20
Sandton
9 October 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 09-10-2020 08:18:00
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.
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC”, “Company” or “Group”)
SHORT FORM ANNOUNCEMENT – SUMMARISED CONSOLIDATED FINANCIAL STATEMENTS FOR
THE YEAR ENDED 31 MARCH 2020
SALIENT FEATURES
- Group revenue: R10 241 million (March 2019: R10 494 million, restated)
- Group EBITDA: R1 604 million (March 2019: R1 946 million)
- Loss per share: 124 cents (March 2019: earnings per share 16 cents,
restated)
- Headline earnings per share: 27 cents (March 2019: 20 cents, restated)
- The Group did not declare a dividend for the current or previous year
Roland van Wijnen, chief executive officer, said:
“FY20 was characterised by difficult trading conditions, especially in South
Africa. The global COVID-19 pandemic, which emerged during the last month of
the financial year, further exacerbated an already difficult trading cycle.
We acted swiftly to implement protocols to protect our employees, improve
our competitiveness and preserve cash. While we have seen a decline in our
financial performance, we also see that the actions we have taken to
reposition PPC to deliver sustainable value for all our stakeholders are
beginning to yield results. After the resumption of trading in FY21, the
performance across all of our core businesses has been encouraging. The
Group’s capital restructuring remains a key priority. Over the next nine
months, we will take the strategic and operational actions needed to improve
the Group’s financial position and performance. It is encouraging to see how
PPC employees have come together to drive performance to sustain our purpose
to empower people to experience a better quality of life.”
GROUP PERFORMANCE
Group revenue declined by 2% to R10 241 million (March 2019: R10 494 million,
restated). Excluding Zimbabwe, revenue declined by 7% from R9 047 million
(restated) to R8 380 million, mainly due to a decline in revenues from South
Africa cement.
Cost of sales reduced by 3% to R8 248 million (March 2019: R8 487 million,
restated) compared with the previous year. Administration and other operating
expenditure increased by 16% to R1 284 million (March 2019: R1 104 million,
restated). This increase is primarily due to the impact of hyperinflation in
Zimbabwe and an increase in fees paid to consultants.
Fair value adjustments and foreign exchange movements resulted in a gain of
R151 million (March 2019: R126 million loss), mostly as a result of the
revaluation of foreign-denominated intercompany loan accounts. The
Democratic Republic of the Congo (“DRC”) put option carrying value was
reduced to zero, resulting in a remeasurement gain of R251 million for the
year. The slower than anticipated ramp-up in the DRC resulted in no capital
repayments having been made on the US dollar-denominated debt in the DRC, as
well as more conservative cash flow forecasts, resulting in the option value
being zero.
A fair value gain on the Zimbabwe financial asset of R7 million (March 2019:
R236 million) was realised after taking into account a 50% credit risk fair
value adjustment of R161 million (March 2019: R37 million, restated), while
a loss was recorded on the blocked funds of R258 million (March 2019: Rnil)
which included an 85% credit risk fair value adjustment of R332 million. The
application of International Accounting Standards (“IAS”) 29 Financial
Reporting in Hyperinflationary Economies resulted in a net monetary gain
amounting to R651 million (before tax).
Impairments before tax amounted to R3 074 million (March 2019: R76 million,
restated), of which R2 767 million relates to the impairment of property,
plant and equipment, R205 million relates to the impairment of goodwill and
R102 million to the impairment of intangible assets. The uncertainty around
the potential effects of COVID-19 on PPC’s operating performance impacted
the impairment assessments of cash-generating units, resulting in impairments
of R1 946 million in South Africa cement and readymix, and R1 128 million in
the DRC.
Finance costs decreased by 4% to R652 million (March 2019: R676 million).
South African finance costs decreased by 6% to R216 million (March 2019:
R229 million) and international finance costs decreased by 2% to R436 million
(March 2019: R447 million).
Profit attributable to shareholders of PPC Ltd reduced to a loss of R1 872
million (March 2019: R235 million, restated) while headline earnings which
exclude the impact of impairments and other capital items increased to R406
million (March 2019: R300 million, restated). Earnings per share reduced to
a loss of 124 cents (March 2019: 16 cents, restated) and headline earnings
per share increased to 27 cents per share (March 2019: 20 cents, restated).
Cash available from operations decreased by R794 million, from R1 257 million
to R463 million. The decrease in cash generated from operations is primarily
due to the reduction in EBITDA from R1 946 million to R1 604 million, the
stockpiling of strategic inventories, accumulation of critical spares, and
the impact of hyperinflation in Zimbabwe on inventory balances. Trade
receivables were negatively impacted by delays in payments from customers as
businesses in the construction sector focused on cash preservation during
the lockdown in the regions we operate. Trade payables were also affected by
capex retention payments of US$2,8 million in the DRC, as well as payments
made to suppliers in FY20 as part of negotiations to extend payment terms.
Cash preservation is a major focus area in the coming financial year.
Capital investments in property, plant and equipment decreased by 16% to
R650 million (March 2019: R773 million).
Gross debt increased from R5 002 million in March 2019 to R5 800 million at
the end of March 2020. The currency impact on international debt was to
increase the reported gross debt by R638 million.
CEMENT SOUTH AFRICA AND BOTSWANA
PPC is the leading supplier of cement in these markets with an extensive
footprint and distribution network. With our three mega plants strategy, we
focus on improving cost competitiveness by supplying products to customers
from the three largest and most efficient plants in our portfolio.
Realised average selling prices for South Africa increased by 8% to 10% as
the business continued with its drive to increase cement prices to recover
operational costs and improve returns. Cement volu mes declined by 15% to
20%, with the coastal regions experiencing a smaller decline. We estimate
that the South African cement industry declined by 7% to 10% for the period,
driven by muted demand. The construction sector which accounts for a
substantial proportion of PPC Cement sales was weaker than the overall
market. Retail demand, however, was supported by activity in the DIY market.
Imports and blender activity further exacerbated the competitive environment,
with cement imports increasing by 36% to 1,3 million tonnes from April 2019
to March 2020, compared with the previous year. In conjunction with The
Concrete Institute (TCI), PPC and other industry players submitted an
application to the International Trade Administration Commission (ITAC),
highlighting the impact of imports on domestic cement production. PPC
continues to engage with the relevant authorities to ensure that non-
conforming cement is not sold to the public to reduce the risk of collapsing
structures.
Revenue in South Africa and Botswana declined by 11% to R4 843 million (March
2019: R5 431 million). The reduction in revenue, coupled with a reduced
ability to absorb fixed costs from the decline in volumes, resulted in EBITDA
contracting by 36% to R613 million (March 2019: R957 million) an d margins
declining from 17,6% to 12,7%.
MATERIALS BUSINESS
Aggregates, ready-mix and ash
Revenue decreased by 11% to R1 178 million (March 2019: R1 318 million),
primarily as a result of reduced volumes in the aggregates division due to
weak demand in the construction industry. EBITDA increased by 18% to
R20 million (March 2019: R17 million) due to improved cost management.
Lime
The lime division’s revenue declined by 2% to R816 million (March 2019:
R834 million) with volumes and pricing under pressure due to the decline in
steel-related activity. EBITDA contracted by 11% to R110 million (March 2019:
R123 million) due to lower volumes and higher input costs.
INTERNATIONAL
The international operations hold leading positions in their respective
markets and, despite challenging trading conditions in some markets, the
businesses are well positioned to deliver sustainable value for stakeholders
over the medium term. Shorter term, our focus is to optimise the businesses
to enhance competitiveness and improve the quality of the products offered
to customers.
Zimbabwe
Trading conditions in Zimbabwe were characterised by weak demand, unstable
power supply, and a shortage of foreign currency. PPC Zimbabwe continues to
supply quality products to its customers while remaining financially self-
sufficient.
PPC Zimbabwe also secured supply contracts for a substantial proportion of
the large infrastructure projects in Zimbabwe, in hard currency, which
assisted in alleviating some of the volume declines in the other segments of
the market. The cost base was also restructured to match demand.
Cement volumes declined by 15% to 20% in a market that contracted by a similar
percentage. Cement pricing was adjusted to account for the increase in
inflation and the devaluation of the local currency. Revenue increased by
29% to R1 861 million (March 2019: R1 447 million) and EBITDA grew by 53% to
R707 million (March 2019: R461 million). EBITDA margins improved to 38,0%,
versus 31,9% in March 2019 aided by higher selling prices and lower cost.
PPC Zimbabwe continues to meet its debt obligations.
Rwanda
In Rwanda, CIMERWA benefited from robust cement demand, driven by large
infrastructure projects, growth in the retail market and export demand in
the eastern DRC.
CIMERWA achieved revenue growth of 6% to R936 million (March 2019: R885
million) due to increases in pricing and volumes. EBITDA declined by 8% to
R226 million (March 2019: R246 million) because of higher operational costs
incurred to improve the output of the plant and the lockdown imposed by the
authorities. The plant is expected to reach nominal capacity in the next 18
months.
DRC
PPC Barnet in the DRC achieved revenue growth of 5% to R607 million (March
2019: R579 million, restated), driven by higher pricing and translation
gains. PPC estimates that market demand increased by 4% to 8%; however, this
was offset by an increase in imports from neighbouring countries. Cement
producers in the DRC continue to lobby the authorities to increase the
enforcement of existing laws banning the importation of cement into the DRC.
The business generated EBITDA of R94 million (March 2019: R108 million.
EBITDA in FY20 includes management fees not previously charged, as well as
a once-off write-off of development costs. Excluding these items, EBITDA
improved on last year. The business is in the process of restructuring its
debt.
OUTLOOK
PPC´s cement operations ramped up in May 2020 post the COVID-19 restrictions
imposed at the end of March 2020 across most of the jurisdictions in which
the Group operates. Over the first six months of FY21 (April – Sept) South
Africa & Botswana cement sales volumes declined by 5% to 10% year-on-year
due to the impact of the lockdown. Following a strong recovery, Cement South
Africa & Botswana experienced double-digit year-on-year growth in sales
volumes since June. In the last three months (July – Sept) Cement South
Africa & Botswana cement sales volumes increased by 20% to 25% year-on-year.
The International operations were less affected by the COVID -19 pandemic. In
aggregate, total cement volumes sold also showed strong growth in June 2020
to September 2020 compared to the same period in 2019. For the first 6 months
of FY21, PPC Zimbabwe and PPC Barnet (DRC) experienced 5% to 10% volume
growth each compared to the prior comparable period. In the last three months
(July – September) sales volumes in PPC Zimbabwe and PPC Barnet (DRC)
increased by 35% to 40% and 20% to 25% respectively, compared to the period
July to September in 2019. In Rwanda, CIMERWA experienced approximately 5%
to 10% sales volume growth from April 2020 to September 2020 compared to the
same period last year. In the last three months (July to September 2020),
sales volumes increased by 15% to 20% year-on-year.
Despite the positive sales momentum, the Group remains cautious on the
outlook for the rest of FY21 given the ongoing health crisis and its resultant
impact on economic activity. PPC will remain focused on ca sh preservation,
improving cost competitiveness by lowering operational costs, and positioning
the business for recovery. Whilst remaining cautious regarding prospects,
PPC remains hopeful that the commitment of the South African government to
an infrastructure investment led economic recovery will lead to increased
cement consumption. If this is the case, PPC, with its national production
and logistical footprint, is very well placed to benefit from such an
increase.
To strengthen the Group’s balance sheet and improve the investment prospects
of PPC, the Group has embarked on a detailed refinancing and restructuring
project, which will ensure that the Group is sustainably capitalised and
self-sufficient on a standalone basis across the regions whe re it operates.
This will be implemented over the course of FY21. Refer to note 36 of the
audited consolidated financial statements.
AUDIT OPINION
The Audited Financial Statements were audited by Deloitte & Touche, who
expressed an unmodified audit opinion, highlighting certain key audit matters
and an emphasis of matter around a material uncertainty relating to the going
concern assumption in their report. A copy of the auditor’s report on the
consolidated financial statements, together with the con solidated financial
statements, is available on the following link:
www.ppc.africa/corporate/investorsmedia/financial-presentations-report.
SHORT FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors. This is
a summary of the information contained in the audited financial results
announcement (“full announcement”) and does not contain full or complete
details. This announcement is extracted from audited results but is itself
not audited.
The full announcement can be accessed using the following JSE link:
https://senspdf.jse.co.za/documents/2020/jse/isse/PPC/FY20Result.pdf
Any investment decisions by investors and/or shareholders should be based
on consideration of the full announcement published today, Friday 9 October
2020, on the company's website at
www.ppc.africa/corporate/investorsmedia/financial-presentations-report
A copy of the full announcement is also available for inspection at the
company's registered office (by appointment, observing COVID-19
restrictions), and may be requested from the Company Secretary Kristell
Holtzhausen at Kristell.holtzhausen@ppc.co.za at no charge, weekdays during
office hours.
A live and recorded video webcast of the results presentation will be held
today at 11:00am and can be accessed via this link:
https://www.corpcam.com/PPCFY20
Sandton
9 October 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 09-10-2020 08:18:00
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.
2020/09/30
Restatement to Prior Period Results, Trading Statement, Delay in Reporting of FY20 Results & Renewal of Cautionary
View ArticleRestatement to Prior Period Results, Trading Statement, Delay in Reporting of FY20 Results & Renewal of Cautionary
Restatement to Prior Period Results, Trading Statement, Delay in Reporting of FY20 Results & Renewal of Cautionary
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
PPC LTD – FURTHER RESTATEMENT TO PRIOR PERIOD FINANCIAL RESULTS, UPDATED TRADING
STATEMENT, DELAY IN REPORTING OF 31 MARCH 2020 FINANCIAL RESULTS, OPERATIONAL
UPDATE, RESTRUCTURING AND REFINANCING PROJECT UPDATE AND RENEWAL OF CAUTIONARY
ANNOUNCEMENT
FURTHER RESTATEMENTS TO PRIOR PERIOD FINANCIAL RESULTS
Shareholders of the Company (“Shareholders”) are referred to the announcement on
the Stock Exchange News Services (“SENS”) issued on 18 August 2020. The Company
wishes to advise Shareholders that during the audit process for the year ended
31 March 2020, and subsequent to 18 August 2020, additional prior year errors were
identified and corrected. These corrections and financial impacts are detailed
below.
EQUITY-ACCOUNTED INVESTMENT IN HABESHA - ETHIOPIA
PPC previously advised Shareholders that the equity accounted investment in Habesha
of R146 million should have been fully impaired in the prior year. PPC has
subsequently discovered that Habesha restated their FY19 financial statements due
to the first-time adoption of International Financial Reporting Standards (“IFRS”)
in Ethiopia, highlighting the fact that PPC should have adjusted its share of
losses in previous years to comply with IFRS, which it did not do.
The result of correcting the error by accounting for the IFRS losses reduced the
carrying value of the associate at 31 March 2018 by R126 million and by a further
R20 million at 31 March 2019. Therefore, no impairment is required in the current
financial year as the additional losses decreased the carrying value to zero by
31 March 2019.
DEMOCRATIC REPUBLIC OF CONGO PUT OPTION
As part of the project financing arrangements for the development of PPC’s
Democratic Republic of Congo (“DRC”) operations, PPC entered into a put option
agreement with an international development finance institution in terms of which
the latter can put its investment, or part thereof, in PPC Barnet DRC Holdings, to
PPC. The exercise price is determined by way of a formula stipulated in the
agreement.
In previous years, PPC applied the formula incorrectly in determining the carrying
value of the put option. Correcting this error resulted in a reduction in the
carrying value of the put option from R245 million (as previously stated) to
R176 million as at 31 March 2018 and from R274 million (as previously stated) to
R251 million as at 31 March 2019. Consequently, the loss on revaluation of the put
option in 2019 increased by R46 million.
NON-CONTROLLING INTERESTS
In finalising the Group annual financial statements, further prior year errors
relating to non-controlling (“NCI”) interests have come to light that require
additional investigation and conclusion. Whilst any required adjustments are not
expected to impact the financial loss for the period ended 31 March 2020, these
adjustments are important in ensuring the financial statements present fairly, in
all material respects, the financial position of the Group at the respective balance
sheet dates. The adjustments required are expected to be a reclassification between
NCI and Retained Earnings and further details will be disclosed together with the
release of the audited financial statements.
UPDATED TRADING STATEMENT FOR THE YEAR ENDED 31 MARCH 2020
Further to the announcement on 18 August 2020, providing guidance on the financial
results for the period ended 31 March 2020, the Company would like to update its
Shareholders as outlined below.
Group revenue for the year ended 31 March 2020 is confirmed to have decreased by
less than 5% compared to the prior year (March 2019: R10.409 billion). Earnings
before interest, tax, depreciation, and amortisation (“EBITDA”), is confirmed to
have decreased by approximately 16% compared to the prior year
(March 2019: R1.946 billion). Before taking into account any adjustment resulting
from the NCI re-allocation to retained earnings referred to above, basic earnings
per share is expected to reflect a loss per share of between 120 and 130 cents per
share, and headline earnings per share is still expected to be between 25 cents
and 30 cents per share.
Total Group assets and total Group borrowings were R17.093 billion and R5.8 billion
at 31 March 2020 respectively. Total Group equity is expected to be approximately
R7.793 billion.
DELAY IN REPORTING OF 31 MARCH 2020 ANNUAL FINANCIAL RESULTS
PPC announced on 18 August 2020 that it expected to release its year ended 31 March
2020 financial results by no later than 30 September 2020. As a result of the
required restatements and the finalisation of the year-end audit, PPC now expects
to release its financial results for the year ended 31 March 2020 in the week of
5 October 2020. PPC has received dispensation from the JSE in terms of this extended
reporting date given the impact of the Covid-19 pandemic on the business, the
complexities of finalising the year-end audit as well as the impact of the
restructuring and refinancing project underway.
OPERATIONAL UPDATE AUGUST 2020 – SEPTEMBER 2020
As reported to Shareholders in the Company’s 30 April 2020, 23 July 2020, and
18 August 2020 operational updates, PPC’s cement operations ramped up in May 2020
post the Covid-19 restrictions imposed at the end of March 2020 across most of the
jurisdictions in which the Group operates. Double-digit year-on-year growth of
cement volumes in South Africa were experienced in June and July and have continued
at a high rate in August and September. For these two months combined, PPC expects
volume growth of more than 25% when compared to the prior year. The resumption of
construction activities and the temporary effect of high activity in construction
projects to catch up on the delivery of these projects have had a positive impact
on the performance.
Given the inherent uncertainty of the current South African economic environment,
the Company is cautious on the sustainability of strong cement volumes experienced
and continues with the implementation of measures to reduce costs and increase
cash generation from its operations. As at the date of this announcement, total
borrowings in the South African operations have decreased by over R200 million as
a result of the increased cash generation and these initiatives.
In the international subsidiaries, the businesses have been less affected by the
Covid-19 pandemic. In aggregate, total cement volumes sold also showed double-
digit growth comparing July 2020 with July 2019. Strong sales volumes have continued
in August and September 2020, with PPC Barnet (DRC) and PPC Zimbabwe experiencing
approximately 25% sales volume growth respectively compared to the prior comparable
period. In Rwanda, CIMERWA expects August and September cement volumes sold to
increase by approximately 10% compared to the same period last year. All markets
of these international subsidiaries of PPC benefit from a good performance of the
cement plants and healthy construction activities. The increased sales volumes and
the effect of the cost reduction and cash preservation measures have resulted in
cash flows for the last few months showing a positive trajectory.
The financial information contained in this announcement has neither been reviewed
nor reported on by the Company’s external auditors.
RESTRUCTURING AND REFINANCING UPDATE
As outlined in the announcements on 13 August 2020, 18 August 2020, and
15 September 2020, PPC is undertaking a restructuring and refinancing project with
the objective of implementing a sustainable capital structure. PPC continues to
make positive progress on the project with finalisation of revised facilities
documentation with its South African lenders expected in October 2020 and
standstill documentation with its DRC lenders in November 2020.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are advised to continue exercising caution when dealing in securities
of PPC until the release of the annual financial statements for the year ended
31 March 2020 and full details of the funding arrangements with the lenders and
the capital raise are published.
Sandton
30 September 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 30-09-2020 08:10:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
PPC LTD – FURTHER RESTATEMENT TO PRIOR PERIOD FINANCIAL RESULTS, UPDATED TRADING
STATEMENT, DELAY IN REPORTING OF 31 MARCH 2020 FINANCIAL RESULTS, OPERATIONAL
UPDATE, RESTRUCTURING AND REFINANCING PROJECT UPDATE AND RENEWAL OF CAUTIONARY
ANNOUNCEMENT
FURTHER RESTATEMENTS TO PRIOR PERIOD FINANCIAL RESULTS
Shareholders of the Company (“Shareholders”) are referred to the announcement on
the Stock Exchange News Services (“SENS”) issued on 18 August 2020. The Company
wishes to advise Shareholders that during the audit process for the year ended
31 March 2020, and subsequent to 18 August 2020, additional prior year errors were
identified and corrected. These corrections and financial impacts are detailed
below.
EQUITY-ACCOUNTED INVESTMENT IN HABESHA - ETHIOPIA
PPC previously advised Shareholders that the equity accounted investment in Habesha
of R146 million should have been fully impaired in the prior year. PPC has
subsequently discovered that Habesha restated their FY19 financial statements due
to the first-time adoption of International Financial Reporting Standards (“IFRS”)
in Ethiopia, highlighting the fact that PPC should have adjusted its share of
losses in previous years to comply with IFRS, which it did not do.
The result of correcting the error by accounting for the IFRS losses reduced the
carrying value of the associate at 31 March 2018 by R126 million and by a further
R20 million at 31 March 2019. Therefore, no impairment is required in the current
financial year as the additional losses decreased the carrying value to zero by
31 March 2019.
DEMOCRATIC REPUBLIC OF CONGO PUT OPTION
As part of the project financing arrangements for the development of PPC’s
Democratic Republic of Congo (“DRC”) operations, PPC entered into a put option
agreement with an international development finance institution in terms of which
the latter can put its investment, or part thereof, in PPC Barnet DRC Holdings, to
PPC. The exercise price is determined by way of a formula stipulated in the
agreement.
In previous years, PPC applied the formula incorrectly in determining the carrying
value of the put option. Correcting this error resulted in a reduction in the
carrying value of the put option from R245 million (as previously stated) to
R176 million as at 31 March 2018 and from R274 million (as previously stated) to
R251 million as at 31 March 2019. Consequently, the loss on revaluation of the put
option in 2019 increased by R46 million.
NON-CONTROLLING INTERESTS
In finalising the Group annual financial statements, further prior year errors
relating to non-controlling (“NCI”) interests have come to light that require
additional investigation and conclusion. Whilst any required adjustments are not
expected to impact the financial loss for the period ended 31 March 2020, these
adjustments are important in ensuring the financial statements present fairly, in
all material respects, the financial position of the Group at the respective balance
sheet dates. The adjustments required are expected to be a reclassification between
NCI and Retained Earnings and further details will be disclosed together with the
release of the audited financial statements.
UPDATED TRADING STATEMENT FOR THE YEAR ENDED 31 MARCH 2020
Further to the announcement on 18 August 2020, providing guidance on the financial
results for the period ended 31 March 2020, the Company would like to update its
Shareholders as outlined below.
Group revenue for the year ended 31 March 2020 is confirmed to have decreased by
less than 5% compared to the prior year (March 2019: R10.409 billion). Earnings
before interest, tax, depreciation, and amortisation (“EBITDA”), is confirmed to
have decreased by approximately 16% compared to the prior year
(March 2019: R1.946 billion). Before taking into account any adjustment resulting
from the NCI re-allocation to retained earnings referred to above, basic earnings
per share is expected to reflect a loss per share of between 120 and 130 cents per
share, and headline earnings per share is still expected to be between 25 cents
and 30 cents per share.
Total Group assets and total Group borrowings were R17.093 billion and R5.8 billion
at 31 March 2020 respectively. Total Group equity is expected to be approximately
R7.793 billion.
DELAY IN REPORTING OF 31 MARCH 2020 ANNUAL FINANCIAL RESULTS
PPC announced on 18 August 2020 that it expected to release its year ended 31 March
2020 financial results by no later than 30 September 2020. As a result of the
required restatements and the finalisation of the year-end audit, PPC now expects
to release its financial results for the year ended 31 March 2020 in the week of
5 October 2020. PPC has received dispensation from the JSE in terms of this extended
reporting date given the impact of the Covid-19 pandemic on the business, the
complexities of finalising the year-end audit as well as the impact of the
restructuring and refinancing project underway.
OPERATIONAL UPDATE AUGUST 2020 – SEPTEMBER 2020
As reported to Shareholders in the Company’s 30 April 2020, 23 July 2020, and
18 August 2020 operational updates, PPC’s cement operations ramped up in May 2020
post the Covid-19 restrictions imposed at the end of March 2020 across most of the
jurisdictions in which the Group operates. Double-digit year-on-year growth of
cement volumes in South Africa were experienced in June and July and have continued
at a high rate in August and September. For these two months combined, PPC expects
volume growth of more than 25% when compared to the prior year. The resumption of
construction activities and the temporary effect of high activity in construction
projects to catch up on the delivery of these projects have had a positive impact
on the performance.
Given the inherent uncertainty of the current South African economic environment,
the Company is cautious on the sustainability of strong cement volumes experienced
and continues with the implementation of measures to reduce costs and increase
cash generation from its operations. As at the date of this announcement, total
borrowings in the South African operations have decreased by over R200 million as
a result of the increased cash generation and these initiatives.
In the international subsidiaries, the businesses have been less affected by the
Covid-19 pandemic. In aggregate, total cement volumes sold also showed double-
digit growth comparing July 2020 with July 2019. Strong sales volumes have continued
in August and September 2020, with PPC Barnet (DRC) and PPC Zimbabwe experiencing
approximately 25% sales volume growth respectively compared to the prior comparable
period. In Rwanda, CIMERWA expects August and September cement volumes sold to
increase by approximately 10% compared to the same period last year. All markets
of these international subsidiaries of PPC benefit from a good performance of the
cement plants and healthy construction activities. The increased sales volumes and
the effect of the cost reduction and cash preservation measures have resulted in
cash flows for the last few months showing a positive trajectory.
The financial information contained in this announcement has neither been reviewed
nor reported on by the Company’s external auditors.
RESTRUCTURING AND REFINANCING UPDATE
As outlined in the announcements on 13 August 2020, 18 August 2020, and
15 September 2020, PPC is undertaking a restructuring and refinancing project with
the objective of implementing a sustainable capital structure. PPC continues to
make positive progress on the project with finalisation of revised facilities
documentation with its South African lenders expected in October 2020 and
standstill documentation with its DRC lenders in November 2020.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are advised to continue exercising caution when dealing in securities
of PPC until the release of the annual financial statements for the year ended
31 March 2020 and full details of the funding arrangements with the lenders and
the capital raise are published.
Sandton
30 September 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 30-09-2020 08:10:00
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.
Restructuring and Refinancing Update and Renewal of Cautionary Announcement
Restructuring and Refinancing Update and Renewal of Cautionary Announcement
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or "Group")
RESTRUCTURING AND REFINANCING UPDATE AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
RESTRUCTURING AND REFINANCING UPDATE
Shareholders of PPC (“Shareholders”) are referred to the Restructuring and Refinancing Update
released on the Stock Exchange News Service (“SENS”) on 13 August 2020 and the Restatement of
Prior Year Results, Trading Statement, Delay in Reporting of 31 March Financial Results and
Operational Update released on 18 August 2020 advising that PPC is undertaking a restructuring and
refinance project (“Project”) with the objective of implementing a sustainable capital structure.
PPC has made positive progress on the Project, reaching important milestones as set out below.
Funding confirmation from South African lenders
The Company has engaged with its South African lenders who provide various short and long term
facilities under existing agreements. PPC has concluded an overarching termsheet with its two
primary South African lenders (“SA Primary Banks”) that provides for:
- All short term banking facilities that were in place at financial year end will remain in place under
similar terms until at least September 2021
- All long term facilities that were in place at financial year end will remain in place, with the
extension of tenor of one of the facilities for an additional six months
- A deferral of scheduled interest and capital repayments on long term facilities until March 2021
- The security position will be enhanced through a security pool arrangement
- A waiver and condonement of covenant breaches under existing facilities and ongoing compliance
with amended covenants including EBITDA and liquidity headroom
- A commitment to reduce the levels of gearing in South Africa through a combination of a capital
raise and asset sales; any capital raise is conditional on the implementation of the other Project
steps, as previously communicated to shareholders
Following credit approval by the SA Primary Banks, the Group has commenced the process of
formalising the term sheet and security arrangements.
PPC has also signed a new working capital facility with its third South African lender under similar
terms and conditions to the above, providing access to ongoing liquidity until December 2021.
Agreement with PPC Barnet lenders
PPC Barnet has negotiated a termsheet with its lenders in the DRC (“PPC Barnet Lenders”) providing
for a standstill to allow for the implementation of a long term restructuring plan. The term sheet
provides for:
- Initial standstill period to 31 December 2020, with possibility of extension to 31 March 2021
subject to certain extension milestones being met related to the long term restructuring plan
- Forbearance of unpaid principal amortisation to date and scheduled principal amortisation until
the end of the standstill period
- Forbearance of unpaid interest to date and scheduled interest until the end of the standstill
period
1
- Negative covenants customary of an arrangement of this nature, including restrictions of incural
of additional debt outside of the existing Group facilities, dividend restrictions, capital
expenditure remaining in line with current budgets and certain financial conduct undertakings
with respect to other Group companies
Subject to final credit approval of the PPC Barnet Lenders, the Group will commence the process of
formalising the term sheet and expects it to be completed in due course.
Key subsequent steps in the restructuring and refinance project
The conclusion of the abovementioned agreements are two important milestones towards achieving
the Project’s overall objectives. It enables PPC to progress to the next phase of the Project, being the
implementation of a long term restructuring plan for PPC Barnet and relieving PPC of its contingent
obligations. The restructuring plan includes raising capital in PPC International to enable a
sustainable capital structure, to fund certain capital investments in the international businesses and
support the restructuring claims of PPC Barnet lenders.
As a final step, and in line with the commitment given to the SA lenders, consideration will be given
to PPC raising capital from its shareholders by way of a rights issue in order to strengthen the
balance sheet and enable the broader restructuring. A capital raise at the Group level is conditional
on PPC reaching a satisfactory outcome on the above Project steps with the timing, quantum and
terms thereof only to be determined once these steps have been achieved.
The project is still targeted for completion by 31 March 2021, although no assurance can be given
that the various corporate actions will be completed by such date.
Shareholders will be updated on progress of the Project, with further details to be published
together with the Company’s FY20 results announcement which is expect to be later this month.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are advised to continue exercising caution when dealing in securities of PPC until the
full details of the funding arrangements with the lenders and the capital raise are published.
Sandton
15 September 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
2
Date: 15-09-2020 08:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or "Group")
RESTRUCTURING AND REFINANCING UPDATE AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
RESTRUCTURING AND REFINANCING UPDATE
Shareholders of PPC (“Shareholders”) are referred to the Restructuring and Refinancing Update
released on the Stock Exchange News Service (“SENS”) on 13 August 2020 and the Restatement of
Prior Year Results, Trading Statement, Delay in Reporting of 31 March Financial Results and
Operational Update released on 18 August 2020 advising that PPC is undertaking a restructuring and
refinance project (“Project”) with the objective of implementing a sustainable capital structure.
PPC has made positive progress on the Project, reaching important milestones as set out below.
Funding confirmation from South African lenders
The Company has engaged with its South African lenders who provide various short and long term
facilities under existing agreements. PPC has concluded an overarching termsheet with its two
primary South African lenders (“SA Primary Banks”) that provides for:
- All short term banking facilities that were in place at financial year end will remain in place under
similar terms until at least September 2021
- All long term facilities that were in place at financial year end will remain in place, with the
extension of tenor of one of the facilities for an additional six months
- A deferral of scheduled interest and capital repayments on long term facilities until March 2021
- The security position will be enhanced through a security pool arrangement
- A waiver and condonement of covenant breaches under existing facilities and ongoing compliance
with amended covenants including EBITDA and liquidity headroom
- A commitment to reduce the levels of gearing in South Africa through a combination of a capital
raise and asset sales; any capital raise is conditional on the implementation of the other Project
steps, as previously communicated to shareholders
Following credit approval by the SA Primary Banks, the Group has commenced the process of
formalising the term sheet and security arrangements.
PPC has also signed a new working capital facility with its third South African lender under similar
terms and conditions to the above, providing access to ongoing liquidity until December 2021.
Agreement with PPC Barnet lenders
PPC Barnet has negotiated a termsheet with its lenders in the DRC (“PPC Barnet Lenders”) providing
for a standstill to allow for the implementation of a long term restructuring plan. The term sheet
provides for:
- Initial standstill period to 31 December 2020, with possibility of extension to 31 March 2021
subject to certain extension milestones being met related to the long term restructuring plan
- Forbearance of unpaid principal amortisation to date and scheduled principal amortisation until
the end of the standstill period
- Forbearance of unpaid interest to date and scheduled interest until the end of the standstill
period
1
- Negative covenants customary of an arrangement of this nature, including restrictions of incural
of additional debt outside of the existing Group facilities, dividend restrictions, capital
expenditure remaining in line with current budgets and certain financial conduct undertakings
with respect to other Group companies
Subject to final credit approval of the PPC Barnet Lenders, the Group will commence the process of
formalising the term sheet and expects it to be completed in due course.
Key subsequent steps in the restructuring and refinance project
The conclusion of the abovementioned agreements are two important milestones towards achieving
the Project’s overall objectives. It enables PPC to progress to the next phase of the Project, being the
implementation of a long term restructuring plan for PPC Barnet and relieving PPC of its contingent
obligations. The restructuring plan includes raising capital in PPC International to enable a
sustainable capital structure, to fund certain capital investments in the international businesses and
support the restructuring claims of PPC Barnet lenders.
As a final step, and in line with the commitment given to the SA lenders, consideration will be given
to PPC raising capital from its shareholders by way of a rights issue in order to strengthen the
balance sheet and enable the broader restructuring. A capital raise at the Group level is conditional
on PPC reaching a satisfactory outcome on the above Project steps with the timing, quantum and
terms thereof only to be determined once these steps have been achieved.
The project is still targeted for completion by 31 March 2021, although no assurance can be given
that the various corporate actions will be completed by such date.
Shareholders will be updated on progress of the Project, with further details to be published
together with the Company’s FY20 results announcement which is expect to be later this month.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are advised to continue exercising caution when dealing in securities of PPC until the
full details of the funding arrangements with the lenders and the capital raise are published.
Sandton
15 September 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
2
Date: 15-09-2020 08:00:00
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.
2020/09/02
Notice in Terms of Section 122 of the Companies Act, Act no. 71 of 2008: Disposal of Securities by Public Investm
View ArticleNotice in Terms of Section 122 of the Companies Act, Act no. 71 of 2008: Disposal of Securities by Public Investm
Notice in Terms of Section 122 of the Companies Act, Act no. 71 of 2008: Disposal of Securities by Public Investm
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
NOTICE IN TERMS OF SECTION 122 OF THE COMPANIES ACT, ACT NO. 71 OF 2008: DISPOSAL OF
SECURITIES BY PUBLIC INVESTMENT CORPORATION SOC LIMITED (“PIC”)
In accordance with section 122(1)(b) of the Companies Act, No. 71 of 2008 and section
3.83(b) of the JSE Listings requirements, shareholders are hereby advised that PPC
has received formal notification that PIC has disposed of an interest in the ordinary
shares of the Company, such that the total of all beneficial interest in the ordinary
shares of the Company held by PIC has been reduced from 13.98% to 9.52% of the total
issued share capital of PPC.
Sandton
2 September 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
PPC:
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 02-09-2020 11:30:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
NOTICE IN TERMS OF SECTION 122 OF THE COMPANIES ACT, ACT NO. 71 OF 2008: DISPOSAL OF
SECURITIES BY PUBLIC INVESTMENT CORPORATION SOC LIMITED (“PIC”)
In accordance with section 122(1)(b) of the Companies Act, No. 71 of 2008 and section
3.83(b) of the JSE Listings requirements, shareholders are hereby advised that PPC
has received formal notification that PIC has disposed of an interest in the ordinary
shares of the Company, such that the total of all beneficial interest in the ordinary
shares of the Company held by PIC has been reduced from 13.98% to 9.52% of the total
issued share capital of PPC.
Sandton
2 September 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
PPC:
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 02-09-2020 11:30:00
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.
Correction of Stock Exchange News Service Announcement
Correction of Stock Exchange News Service Announcement
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
CORRECTION OF STOCK EXCHANGE NEWS SERVICE ANNOUNCEMENT
Shareholders of PPC are referred to the Company announcement released on the Stock
Exchange News Service, dated 18 August 2020, regarding, amongst others, the
restatement of the prior year financial results. Your attention is drawn to errors
identified under items 1) Equity-accounted investment in Habesha; and 2) Zimbabwe
financial asset fair value, and the Company would like to state that the audit
process in respect of the identified errors, was triggered by the JSE Proactive
Monitoring process.
Sandton
19 August 2020
Sponsor:
Merrill Lynch South Africa (Pty) Limited
PPC:
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 19-08-2020 02:46:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
CORRECTION OF STOCK EXCHANGE NEWS SERVICE ANNOUNCEMENT
Shareholders of PPC are referred to the Company announcement released on the Stock
Exchange News Service, dated 18 August 2020, regarding, amongst others, the
restatement of the prior year financial results. Your attention is drawn to errors
identified under items 1) Equity-accounted investment in Habesha; and 2) Zimbabwe
financial asset fair value, and the Company would like to state that the audit
process in respect of the identified errors, was triggered by the JSE Proactive
Monitoring process.
Sandton
19 August 2020
Sponsor:
Merrill Lynch South Africa (Pty) Limited
PPC:
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 19-08-2020 02:46:00
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.
2020/08/18
Restatement of Prior Year Results, Trading Statement, Delayed FY20 Financial Results and Operational Update
View ArticleRestatement of Prior Year Results, Trading Statement, Delayed FY20 Financial Results and Operational Update
Restatement of Prior Year Results, Trading Statement, Delayed FY20 Financial Results and Operational Update
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
RESTATEMENT OF PRIOR YEAR RESULTS, TRADING STATEMENT, DELAY IN REPORTING OF 31
MARCH 2020 FINANCIAL RESULTS AND OPERATIONAL UPDATE
RESTATEMENTS TO PRIOR PERIOD FINANCIAL RESULTS
Shareholders of the Company (“Shareholders”) are referred to the audited financial
statements for the year ended 31 March 2019 (“Prior year”), announced on Stock
Exchange News Service (“SENS”) on 26 July 2019. The Company wishes to advise
shareholders that during the audit process for the year ended 31 March 2020, prior
year errors were identified and corrected. The corrections and financial impact
are detailed below.
1) Equity-accounted investment in Habesha
Habesha Cement Share Company (“Habesha”) is an Ethiopian equity accounted
investment held by PPC (refer note 20 of the prior year annual financial
statements). In the prior year PPC concluded that no impairment of the investment
was required. The Board is however of the opinion that the investment of
R146 million should have been fully impaired in the prior year. It follows that
the impairment of R93 million and the equity accounted losses of R54 million in
the interim results dated 30 September 2019 will also be reversed following full
impairment of the investment as at 31 March 2019.
2) Zimbabwe financial asset fair value
The PPC Zimbabwe financial asset arose when its US$ denominated Zimbabwe loan was
registered with the Reserve Bank of Zimbabwe (“RBZ”) (refer note 8 of prior year
annual financial statements). The loan qualifies as legacy debt and a Zimbabwe
dollar (“ZWL”) amount equivalent to the US$ loan balance was transferred to the
RBZ, which amount qualifies for the 1:1 conversion of US$ to ZWL. The financial
asset represents the difference between the prevailing ZWL:US$ exchange rate as at
31 March 2020 and the 1:1 rate approved by the Zimbabwe authorities for the
settlement of the US$ Zimbabwe loan.
No adjustment was applied for credit risk as at 31 March 2019. Considering the
fact that PPC did raise an expected credit loss adjustment on the Zimbabwe
government bonds as at that date, the Board believes it would also have been
appropriate to apply the same percentage fair value credit risk adjustment against
the Zimbabwe financial asset as at that date. As a result, the prior year results
will be restated to take into account a pre-tax fair value adjustment of R36.7
million. It follows that the pre-tax income statement impact of the fair value
adjustment in the interim results dated 30 September 2019 will be reduced from R76
million to R39.3 million.
3) Foreign currency translation reserve and exchange differences
At 31 March 2019, PPC Ltd recognised exchange gains of R116 million that arose
from translation of the Democratic Republic of the Congo (“DRC”) deficiency loan
in the statement of profit or loss in its separate financial statements. In the
Group consolidated annual financial statements, the exchange differences were
accounted for in other comprehensive income and accumulated in the foreign currency
translation reserve, as the Group considered the exchange differences to have
arisen from the net investment in the foreign operation. The Board believes it was
not appropriate to consider the loan as part of the net investment in the foreign
operation and accordingly the pre-tax exchange gain of R116 million should have
been recorded in the statement of profit or loss in the PPC consolidated financial
statements in the prior year. As a result the prior year results will be restated
to reflect the exchange gain. This adjustment has no impact on the 30 September
2019 interim results.
4) Other individually immaterial errors
Several smaller individually immaterial errors have been noted relating to
reallocation of intangible assets, reallocation between reserves and
reclassification of investments as treasury shares. Cumulatively these errors have
no impact on earnings.
The cumulative after-tax impact of all the above-mentioned prior year restatements
is a decrease in basic earnings per share from the previously stated 16 cents per
share to 9 cents per share, and an increase headline earnings per share from the
previously stated 20 cents per share to 23 cents per share. Net asset value is
decreased by R174 million from R9.3 billion in the prior year. Management has
initiated, and will continue to implement, improvements to the internal control
environment and related governance processes to ensure integrity of the information
published.
TRADING STATEMENT FOR THE YEAR ENDED 31 MARCH 2020
Further to the announcement on the 23 June 2020, indicating that financial results
for the period ended 31 March 2020 will differ by more than 20% from those of the
previous corresponding period 31 March 2019, the Company would like to update its
Shareholders as outlined below.
Group revenue for the year ended 31 March 2020 is expected to decrease by less
than 5% compared to the prior year (March 2019: R10.409 billion). Earnings before
interest, tax, depreciation and amortisation (“EBITDA”), is expected to decrease
by a range of 15% to 20% compared to prior year (March 2019: R1.946 billion). Basic
earnings per share is expected to reflect a loss per share of between 110 and 130
cents per share (reflecting a difference of more than 100%), compared with the
restated 9 cents per share achieved for the prior comparable period ended 31 March
2019. Headline earnings per share is expected to be between 25 cents and 30 cents
per share (reflecting a difference of between 8.7% and 30.4%) compared with the
restated 23 cents per share achieved for the prior comparable period ended 31 March
2019.
The difference between the basic earnings per share and headline earnings per share
relates to the impairment of property, plant and equipment in South Africa Cement,
PPC Barnet DRC and Readymix, as well as impairment of certain intangible assets
and goodwill. These impairment considerations were affected by the economic impact
of the Covid-19 pandemic. The financial consequences of the closure of the Group's
plants during lockdown periods of varying lengths depending on the jurisdiction,
and the uncertain economic outlook and recovery periods resulting from the economic
impact of Covid-19 have been factored into the cash flow forecasts utilised in
impairment assessment of the cash generating units of the Group.
Included in headline earnings per share is a net monetary gain of between R625
million and R675 million relating to the hyperinflation accounting in Zimbabwe.
DELAY IN REPORTING OF 31 MARCH 2020 FINANCIAL RESULTS
PPC announced on 23 July 2020 that the Company’s financial results for the year
ended 31 March 2020 would be published on or about 31 August 2020. The Company
took advantage of the dispensation granted by the JSE to delay the publication of
its results by two months and at the time expected to be able to meet that
publication date.
The impact of the Covid-19 pandemic on the year-end and audit process has however
been more severe than initially anticipated. This was due to various levels and
extensions of lockdowns in the countries in which the Group trades, challenges and
delays caused by working remotely during this period and additional analyses
required due to the financial impact of Covid-19 on accounting judgements and
estimates.
In addition, and as communicated to the shareholders of PPC in the announcement on
13 August 2020 on SENS, the Company is undertaking a restructuring and refinance
project with the objective of implementing a sustainable capital structure. PPC
expects to reach certain key milestones on this project in the coming weeks, which
will have an impact on the finalisation of the Company’s financial results.
Given these matters outlined above, PPC is unable to publish audited results by 31
August 2020. PPC, therefore, expects to announce the year ended 31 March 2020
financial results by no later than 30 September 2020. PPC is conscious of its
reporting obligations to regulators and shareholders and is doing everything within
its control to fulfil its obligations.
OPERATIONAL UPDATE APRIL 2020 – JULY 2020
As reported to investors in the company’s 30 April 2020 and 23 July 2020 operational
updates, PPC’s cement operations ramped up in May 2020 post the Covid-19
restrictions imposed at the end of March 2020 across most of the jurisdictions in
which the Group operates. The double digit year-on-year growth of cement volumes
in South Africa during June continued in July as cement sales volumes in South
Africa once again showed double digit growth compared to July 2019. This was
achieved on the back of the strong reduction of imports. Also, the resumption of
construction activities and the temporary effect of high activity in construction
projects to catch up on the delivery of these projects have had a positive impact.
As some of these positives might be temporary and given the economic outlook, PPC
continues with the implementation of measures to reduce costs and increase cash
generation from its operations. The total cement volumes sold by the international
subsidiaries also showed double digit growth comparing July 2020 with July 2019.
The demand is especially strong in Zimbabwe and Rwanda and the growth of sales
volumes during July has been positive in the DRC as well. The increased sales
volumes and the effect of the cost reduction and cash preservation measures have
resulted in cash flows for the last months showing a positive trajectory.
The financial information contained in this announcement has neither been reviewed
nor reported on by the Company’s external auditors.
Sandton
18 August 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
PPC:
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 18-08-2020 08:55:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company")
RESTATEMENT OF PRIOR YEAR RESULTS, TRADING STATEMENT, DELAY IN REPORTING OF 31
MARCH 2020 FINANCIAL RESULTS AND OPERATIONAL UPDATE
RESTATEMENTS TO PRIOR PERIOD FINANCIAL RESULTS
Shareholders of the Company (“Shareholders”) are referred to the audited financial
statements for the year ended 31 March 2019 (“Prior year”), announced on Stock
Exchange News Service (“SENS”) on 26 July 2019. The Company wishes to advise
shareholders that during the audit process for the year ended 31 March 2020, prior
year errors were identified and corrected. The corrections and financial impact
are detailed below.
1) Equity-accounted investment in Habesha
Habesha Cement Share Company (“Habesha”) is an Ethiopian equity accounted
investment held by PPC (refer note 20 of the prior year annual financial
statements). In the prior year PPC concluded that no impairment of the investment
was required. The Board is however of the opinion that the investment of
R146 million should have been fully impaired in the prior year. It follows that
the impairment of R93 million and the equity accounted losses of R54 million in
the interim results dated 30 September 2019 will also be reversed following full
impairment of the investment as at 31 March 2019.
2) Zimbabwe financial asset fair value
The PPC Zimbabwe financial asset arose when its US$ denominated Zimbabwe loan was
registered with the Reserve Bank of Zimbabwe (“RBZ”) (refer note 8 of prior year
annual financial statements). The loan qualifies as legacy debt and a Zimbabwe
dollar (“ZWL”) amount equivalent to the US$ loan balance was transferred to the
RBZ, which amount qualifies for the 1:1 conversion of US$ to ZWL. The financial
asset represents the difference between the prevailing ZWL:US$ exchange rate as at
31 March 2020 and the 1:1 rate approved by the Zimbabwe authorities for the
settlement of the US$ Zimbabwe loan.
No adjustment was applied for credit risk as at 31 March 2019. Considering the
fact that PPC did raise an expected credit loss adjustment on the Zimbabwe
government bonds as at that date, the Board believes it would also have been
appropriate to apply the same percentage fair value credit risk adjustment against
the Zimbabwe financial asset as at that date. As a result, the prior year results
will be restated to take into account a pre-tax fair value adjustment of R36.7
million. It follows that the pre-tax income statement impact of the fair value
adjustment in the interim results dated 30 September 2019 will be reduced from R76
million to R39.3 million.
3) Foreign currency translation reserve and exchange differences
At 31 March 2019, PPC Ltd recognised exchange gains of R116 million that arose
from translation of the Democratic Republic of the Congo (“DRC”) deficiency loan
in the statement of profit or loss in its separate financial statements. In the
Group consolidated annual financial statements, the exchange differences were
accounted for in other comprehensive income and accumulated in the foreign currency
translation reserve, as the Group considered the exchange differences to have
arisen from the net investment in the foreign operation. The Board believes it was
not appropriate to consider the loan as part of the net investment in the foreign
operation and accordingly the pre-tax exchange gain of R116 million should have
been recorded in the statement of profit or loss in the PPC consolidated financial
statements in the prior year. As a result the prior year results will be restated
to reflect the exchange gain. This adjustment has no impact on the 30 September
2019 interim results.
4) Other individually immaterial errors
Several smaller individually immaterial errors have been noted relating to
reallocation of intangible assets, reallocation between reserves and
reclassification of investments as treasury shares. Cumulatively these errors have
no impact on earnings.
The cumulative after-tax impact of all the above-mentioned prior year restatements
is a decrease in basic earnings per share from the previously stated 16 cents per
share to 9 cents per share, and an increase headline earnings per share from the
previously stated 20 cents per share to 23 cents per share. Net asset value is
decreased by R174 million from R9.3 billion in the prior year. Management has
initiated, and will continue to implement, improvements to the internal control
environment and related governance processes to ensure integrity of the information
published.
TRADING STATEMENT FOR THE YEAR ENDED 31 MARCH 2020
Further to the announcement on the 23 June 2020, indicating that financial results
for the period ended 31 March 2020 will differ by more than 20% from those of the
previous corresponding period 31 March 2019, the Company would like to update its
Shareholders as outlined below.
Group revenue for the year ended 31 March 2020 is expected to decrease by less
than 5% compared to the prior year (March 2019: R10.409 billion). Earnings before
interest, tax, depreciation and amortisation (“EBITDA”), is expected to decrease
by a range of 15% to 20% compared to prior year (March 2019: R1.946 billion). Basic
earnings per share is expected to reflect a loss per share of between 110 and 130
cents per share (reflecting a difference of more than 100%), compared with the
restated 9 cents per share achieved for the prior comparable period ended 31 March
2019. Headline earnings per share is expected to be between 25 cents and 30 cents
per share (reflecting a difference of between 8.7% and 30.4%) compared with the
restated 23 cents per share achieved for the prior comparable period ended 31 March
2019.
The difference between the basic earnings per share and headline earnings per share
relates to the impairment of property, plant and equipment in South Africa Cement,
PPC Barnet DRC and Readymix, as well as impairment of certain intangible assets
and goodwill. These impairment considerations were affected by the economic impact
of the Covid-19 pandemic. The financial consequences of the closure of the Group's
plants during lockdown periods of varying lengths depending on the jurisdiction,
and the uncertain economic outlook and recovery periods resulting from the economic
impact of Covid-19 have been factored into the cash flow forecasts utilised in
impairment assessment of the cash generating units of the Group.
Included in headline earnings per share is a net monetary gain of between R625
million and R675 million relating to the hyperinflation accounting in Zimbabwe.
DELAY IN REPORTING OF 31 MARCH 2020 FINANCIAL RESULTS
PPC announced on 23 July 2020 that the Company’s financial results for the year
ended 31 March 2020 would be published on or about 31 August 2020. The Company
took advantage of the dispensation granted by the JSE to delay the publication of
its results by two months and at the time expected to be able to meet that
publication date.
The impact of the Covid-19 pandemic on the year-end and audit process has however
been more severe than initially anticipated. This was due to various levels and
extensions of lockdowns in the countries in which the Group trades, challenges and
delays caused by working remotely during this period and additional analyses
required due to the financial impact of Covid-19 on accounting judgements and
estimates.
In addition, and as communicated to the shareholders of PPC in the announcement on
13 August 2020 on SENS, the Company is undertaking a restructuring and refinance
project with the objective of implementing a sustainable capital structure. PPC
expects to reach certain key milestones on this project in the coming weeks, which
will have an impact on the finalisation of the Company’s financial results.
Given these matters outlined above, PPC is unable to publish audited results by 31
August 2020. PPC, therefore, expects to announce the year ended 31 March 2020
financial results by no later than 30 September 2020. PPC is conscious of its
reporting obligations to regulators and shareholders and is doing everything within
its control to fulfil its obligations.
OPERATIONAL UPDATE APRIL 2020 – JULY 2020
As reported to investors in the company’s 30 April 2020 and 23 July 2020 operational
updates, PPC’s cement operations ramped up in May 2020 post the Covid-19
restrictions imposed at the end of March 2020 across most of the jurisdictions in
which the Group operates. The double digit year-on-year growth of cement volumes
in South Africa during June continued in July as cement sales volumes in South
Africa once again showed double digit growth compared to July 2019. This was
achieved on the back of the strong reduction of imports. Also, the resumption of
construction activities and the temporary effect of high activity in construction
projects to catch up on the delivery of these projects have had a positive impact.
As some of these positives might be temporary and given the economic outlook, PPC
continues with the implementation of measures to reduce costs and increase cash
generation from its operations. The total cement volumes sold by the international
subsidiaries also showed double digit growth comparing July 2020 with July 2019.
The demand is especially strong in Zimbabwe and Rwanda and the growth of sales
volumes during July has been positive in the DRC as well. The increased sales
volumes and the effect of the cost reduction and cash preservation measures have
resulted in cash flows for the last months showing a positive trajectory.
The financial information contained in this announcement has neither been reviewed
nor reported on by the Company’s external auditors.
Sandton
18 August 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
PPC:
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 18-08-2020 08:55:00
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.
Restructuring and Refinancing update and Cautionary Announcement
Restructuring and Refinancing update and Cautionary Announcement
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or "Group")
RESTRUCTURING AND REFINANCING UPDATE AND CAUTIONARY ANNOUNCEMENT
Restructuring and refinancing update
Shareholders of PPC (Shareholders) are referred to the interim results released on the Stock Exchange
News Service (SENS) in November 2019 and various subsequent market updates, including the Trading
and Operational Update released on 23 July 2020 advising that PPC is reviewing the capital structure
of the Group and has embarked on a project to refinance and restructure the Group (Project) with the
objective of implementing a sustainable capital structure.
In this regard, the Board of PPC notes the recent media speculation concerning the restructuring and
refinancing of the Group and sets out below a clarification on the objective and current status of the
Project.
Background to the restructuring and refinancing
The need to restructure and refinance is primarily a result of the investment in PPC Barnet in the
Democratic Republic of Congo, the role assumed by PPC Ltd in 2014 as a project sponsor and
contingent claims against PPC Ltd to provide ongoing deficiency funding to PPC Barnet. The need to
refinance has been exacerbated by the economic effects of the Covid 19 pandemic.
Key steps in the restructuring and refinancing project
The restructuring and refinancing seeks to achieve the following objectives:
- Reach agreement with its South African lenders to provide ongoing access to unutilised facilities,
reset of covenants, defer payments and extend renewal dates of the general banking facilities to
provide greater financial flexibility in the context of the uncertainties of the current trading
environment as a result of the Covid 19 pandemic.
- Reach an arrangement with PPC Barnet’s lenders on its capital and interest obligations as a
precursor to agreeing a sustainable capital structure for PPC Barnet and relieve PPC Ltd of its
contingent obligations.
- Raise capital in PPC International to enable a sustainable capital structure, to fund certain capital
investments in the international businesses and support the restructuring claims of PPC Barnet
lenders. Whilst this will likely result in a dilution of PPC Ltd’s interest in PPC International, it is
envisaged that PPC International will remain a subsidiary company of the Group.
- Any capital raise will be conditional on the Group reaching a satisfactory outcome on the above.
Consideration will be given to a capital raise by way of a PPC rights issue in order to strengthen
the balance sheet and enable the broader restructuring, although the timing, quantum and the
terms thereof will only be determined once the other steps have been achieved.
Project implementation
The Board is of the view that on implementation of the Project, the operations of the Group will be
sustainably capitalised and self-sufficient on a standalone basis across the key geographies in which it
operates, and well positioned to pursue their respective growth and shareholder value creation
strategies.
1
The Board has mobilised significant internal and external resource to implement the Project, including
the appointment of Antony Ball as executive director to lead the Project and the appointment of inter
alia, Gleacher Shacklock LLP as financial advisor to advise on achieving the aforementioned.
The restructuring and refinancing is targeted for completion by 31 March 2021 although no assurance
can be given that the various corporate actions will be completed by such date. In the meantime,
discussions with the various lenders continue on a constructive basis.
Shareholders will be updated on progress of the project, with further details to be published together
with the Company’s FY20 results announcement.
CAUTIONARY ANNOUNCEMENT
Shareholders are advised to exercise caution in dealing in securities of PPC until such time as the full
details of the funding arrangements with the lenders and the capital raise are published.
Sandton
13 August 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
PPC:
Anashrin Pillay
Head Investor Relations
Tel: +27 (0) 11 386 9000
Date: 13-08-2020 09:00:00
2
Date: 13-08-2020 09:12:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or "Group")
RESTRUCTURING AND REFINANCING UPDATE AND CAUTIONARY ANNOUNCEMENT
Restructuring and refinancing update
Shareholders of PPC (Shareholders) are referred to the interim results released on the Stock Exchange
News Service (SENS) in November 2019 and various subsequent market updates, including the Trading
and Operational Update released on 23 July 2020 advising that PPC is reviewing the capital structure
of the Group and has embarked on a project to refinance and restructure the Group (Project) with the
objective of implementing a sustainable capital structure.
In this regard, the Board of PPC notes the recent media speculation concerning the restructuring and
refinancing of the Group and sets out below a clarification on the objective and current status of the
Project.
Background to the restructuring and refinancing
The need to restructure and refinance is primarily a result of the investment in PPC Barnet in the
Democratic Republic of Congo, the role assumed by PPC Ltd in 2014 as a project sponsor and
contingent claims against PPC Ltd to provide ongoing deficiency funding to PPC Barnet. The need to
refinance has been exacerbated by the economic effects of the Covid 19 pandemic.
Key steps in the restructuring and refinancing project
The restructuring and refinancing seeks to achieve the following objectives:
- Reach agreement with its South African lenders to provide ongoing access to unutilised facilities,
reset of covenants, defer payments and extend renewal dates of the general banking facilities to
provide greater financial flexibility in the context of the uncertainties of the current trading
environment as a result of the Covid 19 pandemic.
- Reach an arrangement with PPC Barnet’s lenders on its capital and interest obligations as a
precursor to agreeing a sustainable capital structure for PPC Barnet and relieve PPC Ltd of its
contingent obligations.
- Raise capital in PPC International to enable a sustainable capital structure, to fund certain capital
investments in the international businesses and support the restructuring claims of PPC Barnet
lenders. Whilst this will likely result in a dilution of PPC Ltd’s interest in PPC International, it is
envisaged that PPC International will remain a subsidiary company of the Group.
- Any capital raise will be conditional on the Group reaching a satisfactory outcome on the above.
Consideration will be given to a capital raise by way of a PPC rights issue in order to strengthen
the balance sheet and enable the broader restructuring, although the timing, quantum and the
terms thereof will only be determined once the other steps have been achieved.
Project implementation
The Board is of the view that on implementation of the Project, the operations of the Group will be
sustainably capitalised and self-sufficient on a standalone basis across the key geographies in which it
operates, and well positioned to pursue their respective growth and shareholder value creation
strategies.
1
The Board has mobilised significant internal and external resource to implement the Project, including
the appointment of Antony Ball as executive director to lead the Project and the appointment of inter
alia, Gleacher Shacklock LLP as financial advisor to advise on achieving the aforementioned.
The restructuring and refinancing is targeted for completion by 31 March 2021 although no assurance
can be given that the various corporate actions will be completed by such date. In the meantime,
discussions with the various lenders continue on a constructive basis.
Shareholders will be updated on progress of the project, with further details to be published together
with the Company’s FY20 results announcement.
CAUTIONARY ANNOUNCEMENT
Shareholders are advised to exercise caution in dealing in securities of PPC until such time as the full
details of the funding arrangements with the lenders and the capital raise are published.
Sandton
13 August 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
PPC:
Anashrin Pillay
Head Investor Relations
Tel: +27 (0) 11 386 9000
Date: 13-08-2020 09:00:00
2
Date: 13-08-2020 09:12:00
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.
2020/07/31
Notice of Halt in Trading in Shares of PPC Ltd on The Zimbabwe Stock Exchange
View ArticleNotice of Halt in Trading in Shares of PPC Ltd on The Zimbabwe Stock Exchange
Notice of Halt in Trading in Shares of PPC Ltd on The Zimbabwe Stock Exchange
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or "Group")
NOTICE OF HALT IN TRADING IN SHARES OF PPC Ltd ON THE ZIMBABWE STOCK EXCHANGE
Further to the announcement by the Minister of Finance and Economic Development of
Zimbabwe (‘the Minister’) on 28 July 2020 that investigations into the dealings on
the Zimbabwe Stock Exchange (‘ZSE’) had been completed and that as a condition for
the resumption of trading on the ZSE from 3 August 2020, trading in, inter alia, the
shares of PPC is to remain suspended on the ZSE platform, pending further engagement
on the matter. The ZSE and PPC wish to notify the market as follows:
The press statement issued by the Minister noted that PPC was not involved in any
malpractice linked to the parallel foreign currency market. In addition, the ZSE
informed that PPC is in full compliance with listing rules of the ZSE.
Notwithstanding the foregoing, the ZSE and PPC have agreed to halt trading in the
shares of PPC Limited pending finalisation of the modalities on the resumption of
trading.
PPC will advise the market of any further developments on this matter.
Sandton
31 July 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
PPC:
Anashrin Pillay
Head Investor Relations
Tel: +27 (0) 11 386 9000
Date: 31-07-2020 09:00:00
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.
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or "Group")
NOTICE OF HALT IN TRADING IN SHARES OF PPC Ltd ON THE ZIMBABWE STOCK EXCHANGE
Further to the announcement by the Minister of Finance and Economic Development of
Zimbabwe (‘the Minister’) on 28 July 2020 that investigations into the dealings on
the Zimbabwe Stock Exchange (‘ZSE’) had been completed and that as a condition for
the resumption of trading on the ZSE from 3 August 2020, trading in, inter alia, the
shares of PPC is to remain suspended on the ZSE platform, pending further engagement
on the matter. The ZSE and PPC wish to notify the market as follows:
The press statement issued by the Minister noted that PPC was not involved in any
malpractice linked to the parallel foreign currency market. In addition, the ZSE
informed that PPC is in full compliance with listing rules of the ZSE.
Notwithstanding the foregoing, the ZSE and PPC have agreed to halt trading in the
shares of PPC Limited pending finalisation of the modalities on the resumption of
trading.
PPC will advise the market of any further developments on this matter.
Sandton
31 July 2020
Sponsor
Merrill Lynch South Africa (Pty) Limited
PPC:
Anashrin Pillay
Head Investor Relations
Tel: +27 (0) 11 386 9000
Date: 31-07-2020 09:00:00
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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