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AUDITED PRELIMINARY
REPORT FOR THE YEAR ENDED
30 SEPTEMBER 2012
PPC Ltd (Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06) (“the group” or “the company”)
JSE code: PPC JSE ISIN: ZAE 000170049 ZSE code: PPC
Normalised earnings per share increased 11%
Cash earnings per share increased 16%
Annual dividend up 12% to 146 cents per share following a final dividend declaration of 108 cents per share
BEE Phase II completed and mining rights conversions under way
Acquired 27% of Habesha Cement in Ethiopia
Ketso Gordhan appointed CEO designate
2 For the year ended 30 September 2012
COMMENTARY
Paul Stuiver, CEO, said: “Despite another year in a tough economic environment; characterised by overcapacity in the industry, competitive cement pricing, rising energy costs and strike action in adjacent industries, Team PPC delivered good results by improving efficiencies and increasing normalised earnings by 11%. During the year we finalised a number of key strategic issues including our first new investment into sub Saharan Africa, CEO succession and are in the process of converting our mining rights in South Africa.”
Group revenue increased 8% to R7 346 million (2011: R6 826 million) with improved selling prices compensating for lower
cement sales volumes. PPC’s overall cement sales volumes reduced by 3% following lower sales in Botswana and reduced exports,
which were partly offset by growing demand in Gauteng, Port Elizabeth and Zimbabwe.
Cost of sales of R4 809 million (2011: R4 500 million) increased by 7% mainly due to rising electricity and outbound logistics
(diesel) costs, offset by improved operating efficiencies and savings on salaries following the voluntary separation programme
finalised during 2011.
Administration and other operating expenditure rose by 9% to R671 million (2011: R616 million) due to increased IFRS charges
on employee incentive share schemes and consulting fees incurred on the BEE II transaction.
EBITDA increased 8% to R2 327 million (2011: R2 146 million) while operating profit before BEE IFRS charges rose 9% to
R1 866 million (2011: R1 710 million). The group’s EBITDA margin increased to 31,7% (2011: 31,4%) due to higher revenues
and improved cost management.
Net finance charges were R347 million (2011: R325 million) and taxation amounted to R557 million (2011: R520 million). The
increase in the taxation rate to 39,7% (2011: 37,6%) can be ascribed to the non-deductibility of certain BEE IFRS charges and
increased withholding taxes incurred on dividends received from our foreign operations, partly offset by the STC saved on the
company’s interim dividend following the discontinuance of STC from 1 April 2012.
Earnings per share, excluding BEE IFRS charges (normalised earnings), increased by 11% to 185 cents per share (2011: 166 cents
per share). Cash generated from operations remained strong and increased by 9% to R2 284 million (2011: R2 102 million).
Capital investment was R609 million (2011: R483 million), with R159 million being invested on the De Hoek kiln 6 upgrade project
which was successfully commissioned during the last quarter of the year. Gearing remained substantially in line with last year, with
gross debt rising marginally to R3 585 million (2011: R3 510 million).
Dividends: The directors have declared a final dividend of 108 cents per share (2011: 95 cents per share), which increases
the year’s total dividend by 12% to 146 cents per share (2011: 130 cents per share). The dividend policy of 1,2 to 1,5 times
normalised earnings cover remains unchanged.
Cement:
South Africa: PPC’s South African cement sales volumes declined by 1%, mainly due to a subdued final quarter of the financial
year which proved particularly challenging as the transport sector strike and heavy rains resulted in reduced sales.
Imported cement, which is not subject to import duties and is excluded from the national statistics, accounted for an estimated
6% of national demand. While cement imports have to date been limited primarily to the KwaZulu-Natal province, the effects
are also being felt in the Eastern and Western Cape. The local industry remains concerned that some of these imports are not
compliant with local standards.
PPC’s average cement selling price per ton increased by 5% during the financial year while costs increased by only 3% on a
rand per ton basis. The reconfiguring of the Port Elizabeth factory into a single-product facility in September 2011 and increased
utilisation of the more efficient Dwaalboom kilns were among the key drivers of this pleasing cost performance. The latter
improvement was made possible by an improved performance by Transnet Freight Rail.
Phase 1 of our Western Cape modernisation strategy, the R280 million upgrade of kiln 6 at our De Hoek factory, was
successfully completed during July 2012. PPC has also been granted environmental authorisation for Phase II of its Western Cape
modernisation strategy.
The leniency agreement between PPC and the Competition Commission concluded during 2009 remains intact and we continue
to cooperate fully with the Commission.
Botswana: PPC’s cement volumes in Botswana decreased due to a combination of lower industry demand and increased
competitive activity. The decline in industry demand can be attributed to the slowdown in government spending on infrastructure
projects.
Zimbabwe: Industry demand in Zimbabwe continued its strong growth trajectory. Within this context, PPC’s increasing sales
volumes, combined with higher local selling prices led to enhanced revenue. This was unfortunately partially offset by double
digit increases in the cost of electricity, diesel and salaries.
COMMENTARY continued
3 For the year ended 30 September 2012
The cost of production was further influenced by a six week production interruption due to the failure of a transformer in
February 2012. This required clinker to be imported from our South African operations, thereby incurring additional logistics
costs.
Exports: Exports to neighbouring countries, particularly Mozambique, have declined on the back of intense competition. This
competition derives from both local producers in Mozambique and Asian imports into this market.
Lime and aggregates: Lime sales were negatively impacted by a general decrease in demand from the steel and alloys industry
resulting in overall sales volumes declining by 4%. Contractual selling price increases and improved operating efficiencies
however resulted in EBITDA increasing by 22% to R188 million (2011: R154 million).
Our South African aggregates operations reported solid growth in volumes leading to improved margins. This was offset by the
weak market conditions experienced by our Botswana operations. EBITDA for the aggregates division remained unchanged at
R56 million (2011: R56 million).
Board changes: Mr Ketso Gordhan was appointed to the board with effect from 1 November 2012 as CEO designate and
will take over as CEO on 1 January 2013. The current CEO, Mr Paul Stuiver, will retire from the company and the board on
31 December 2012.
Black Economic Empowerment transaction: In September 2012, the company completed a second phase broad-based black
economic empowerment transaction by placing an additional 39,3 million ordinary shares (6,5% of PPC’s increased share capital)
under black ownership.
The transaction results in more than 26% effective black ownership of PPC’s South African operations and has enabled the
company to meet the South African mining rights conversion requirements as set out by the Mining Charter.
The transaction will also allow PPC to streamline its corporate structure in 2013 by creating separate South African and
international operating entities with focused strategies. In line with its brand-building activities the company also took the
opportunity to rename its listed entity Pretoria Portland Cement Company Limited as PPC Ltd.
Strategy: During the year we made good progress on both our South African and international strategies. In South Africa this
included a number of customer-centric activities and increased operational and logistic efficiencies. PPC’s acquisition of Pronto
Holdings, a prominent readymix and fly ash supplier in Gauteng, received regulatory approval in the first quarter of 2012, further
enhancing our industry leadership position.
In line with our strategy to increase PPC’s revenue generation beyond South Africa, the first phase of our Habesha investment in
Ethiopia will increase our revenue outside South Africa from the current 21% to approximately 26% within the next three years.
The new 1,4 million ton per year Habesha cement plant is due to come on-line during 2014. Plans for the second phase of this
investment include a doubling of capacity to 2,8 million tons a year.
Prospects: South African cement demand for the nine months to the end of June 2012, showed encouraging growth, but given
the impact of labour unrest in the mining industry and the effect of the transport strike, it is likely that more subdued numbers
will be reported for the remainder of 2012.
The effective rollout of government’s infrastructure programme has the potential to ensure a sustained recovery in the South
African cement market. Failing this, growth in demand for 2013 will be muted.
While we continue to monitor and prepare for new entrants, their new capacity will not come on-line before 2014.
We expect cement demand in Zimbabwe to continue growing but are cautious that national elections could potentially interrupt
the recent growth trend. Demand in Botswana should begin improving during 2013 as the Botswana government has recently
released some sizeable projects.
PPC is currently pursuing four opportunities in other African countries, all of which are at different stages of development
including final due diligence. We remain confident that further tangible progress on this front will be made during 2013.
On behalf of the board
BL Sibiya Chairman P Stuiver Chief executive officer MMT Ramano Chief financial officer
12 November 2012
COMMENTARY continued
4 For the year ended 30 September 2012
Final dividend announcement for the year ended 30 September 2012: Notice is hereby given that the final ordinary gross
dividend of 108 cents per share has been declared payable to ordinary shareholders in respect of the year ended 30 September
2012 and will be paid out of profits as determined by the directors.
In terms of dividends tax, the following additional information is disclosed:
– the dividend will be subject to a local dividend tax rate of 15%
– no STC credits have been utilised in this declaration and accordingly the dividend to utilise in determining dividends tax is
108 cents per share
– the dividends tax to be withheld by the company amounts to 16,20 cents per share where no dividend tax exemption is
applicable
– the net dividend payable to shareholders who are not exempt from dividends tax amounts to 91,80 cents per share
– the stated capital of the company at the declaration date comprises of 605 379 648 ordinary shares
– the company’s income tax reference number is 9460015606
The important dates pertaining to this dividend for shareholders trading on the JSE Limited are as follows:
Declaration date Monday, 12 November 2012
Last day to trade Friday, 4 January 2013
Shares trade “Ex” dividend Monday, 7 January 2013
Record date Friday, 11 January 2013
Payment date Monday, 14 January 2013
Share certificates may not be dematerialised or rematerialised between Monday, 7 January 2013 and Friday, 11 January 2013,
both dates inclusive. Transfers between the South African and Zimbabwean registers may not take place between Monday,
7 January and Friday, 11 January 2013.
Zimbabwe: The important dates pertaining to this dividend for shareholders trading on the Zimbabwe Stock Exchange are as
follows:
Shares trade “Ex” dividend Monday, 7 January 2013
Record date Friday, 11 January 2013
Payment date, on or shortly after Monday, 14 January 2013
The register of members in Zimbabwe will be closed from Monday, 7 January 2013 to Friday, 11 January 2013, both days inclusive,
for the purpose of determining those shareholders to whom the dividend will be paid. The dividend payable to shareholders
registered in Zimbabwe will be paid in South African rand.
By order of the board
JHDLR Snyman Group company secretary
12 November 2012
Sandton
5 For the year ended 30 September 2012
CONSOLIDATED INCOME STATEMENT
Year ended
30 Sept 30 Sept2012 2011
Audited AuditedRm Rm
Revenue 7 346 6 826 Cost of sales 4 809 4 500
Gross profit 2 537 2 326 Administration and other operating expenditure 671 616
Operating profit before item listed below: 1 866 1 710 BBBEE IFRS 2 charges 123 11
Operating profit 1 743 1 699 Finance costs 377 353 Investment income 30 28
Profit before exceptional items 1 396 1 374 Exceptional items — (4)Share of associates’ profit 7 15
Profit before taxation 1 403 1 385 Taxation 557 520
Profit for the year 846 865
Attributable to~:Ordinary shareholders 768 785 Other shareholders 78 80
846 865
Earnings per share (cents)
– basic 161 164
– diluted 159 163
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEProfit for the year 846 865 Other comprehensive income, net of taxation 29 97
Effect of translation of foreign operations 17 95 Effect of cash flow hedges 14 (1)Revaluation of available-for-sale financial investments (4) 4 Taxation on other comprehensive income 2 (1)
Total comprehensive income 875 962
~ Profit for the year is apportioned between ordinary and other shareholders based on the number of shares held by each category of shareholder as a ratio of total shares in issue (refer note 5).
NORMALISED EARNINGS PER SHARE*– Earnings per share 185 166– Headline earnings per share 185 167
*Normalised earnings per share is calculated before the impact of BBBEE IFRS 2 charges (net of taxation)
6 For the year ended 30 September 2012
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 Sept 30 Sept2012 2011
Audited AuditedRm Rm
ASSETSNon-current assets 4 998 4 585
Property, plant and equipment 4 483 4 287 Intangible assets 139 94 Non-current financial assets 106 115 Investments in associates 267 89 Deferred tax asset 3 —
Current assets 1 909 1 834
Inventories 841 709 Trade and other receivables 820 901 Cash and cash equivalents 248 224
Total assets 6 907 6 419
EQUITY AND LIABILITIESCapital and reservesStated capital^ (1 181) (1 091)Other reserves 282 125 Retained profit 2 075 1 921
Total equity 1 176 955 Non-current liabilities 4 008 3 837
Deferred taxation liabilities 859 740 Long-term borrowings 2 716 2 699 Provisions and other non-current liabilities 433 398
Current liabilities 1 723 1 627
Short-term borrowings 869 811 Trade and other payables and provisions 854 816
Total equity and liabilities 6 907 6 419
Net asset value per share (cents) 225 181
^Refer note 5.
7 For the year ended 30 September 2012
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended
30 Sept 30 Sept2012 2011
Audited AuditedRm Rm
Total equityBalance at beginning of the year 955 858 Total comprehensive income 875 962 Shares purchased in terms of the FSP share incentive scheme treated as treasury shares (refer note 5) (89) —Securities transfer tax on cancellation of treasury shares (refer note 5) (1) —Dividends paid (706) (876)IFRS 2 charges 142 11
– BBBEE IFRS 2 charges 123 11 – FSP IFRS 2 charges 19 —
Balance at end of the year 1 176 955
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended
30 Sept 30 Sept2012 2011
Audited Audited Rm Rm
Cash flow from operating activitiesOperating cash flows before movements in working capital 2 317 2 127 Net increase in working capital (33) (25)
Cash generated from operations 2 284 2 102 Net finance costs paid and dividends received (216) (226)Taxation paid (417) (441)
Cash available from operations 1 651 1 435 Dividends paid (706) (876)
Net cash inflow from operating activities 945 559
Acquisition of property, plant and equipment (609) (483)Purchase of shares in terms of the FSP share scheme (refer note 5) (89) —Acquisition of equity in associates (refer note 7) (172) —Acquisition of quarries in Botswana (refer note 8) (42) —Other investing movements (26) (21)
Net cash outflow from investing activities (938) (504)
Net cash inflow/(outflow) from financing activities 17 (71)
Net increase/(decrease) in cash and cash equivalents 24 (16)Cash and cash equivalents at beginning of the year 224 240
Cash and cash equivalents at end of the year 248 224
Cash earnings per share (cents)* 315 272 * Cash earnings per share is calculated using cash available from operations divided by the total weighted average number of shares in issue for the year (refer note 5).
8 For the year ended 30 September 2012
NOTES
1. Basis of preparation
These condensed consolidated annual financial statements for the year ended 30 September 2012 have been prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board, the AC 500 standards as issued by the Accounting Practices Board, the information as required by IAS 34: Interim Financial Reporting, the JSE Limited’s listing requirements and the requirements of the South African Companies Act. This preliminary report was compiled under the supervision of the chief financial officer, MMT Ramano CA (SA).
The accounting policies and methods of computation used are consistent with those used in the preparation of the annual financial statements for the year ended 30 September 2011, except for the following revised accounting standards and interpretations that were adopted during the year, and which did not have a material impact on the reported results:
Circular 3/2012 Headline Earnings
IFRS 7 (amendment) Financial Instruments: Disclosures about transfers of financial assets
IAS 1 Presentation of Financial Statements (Clarification of statement of changes in equity)
IAS 19 (amendment) The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interactions
IAS 24 Related Parties Disclosures (Revised definition of related parties)
IAS 34 (amendment) Interim Financial Reporting (Significant events and transactions)
IFRIC 13 (amendment) Customer Loyalty Programmes (Fair value of award credit)
IASB Improvements to IFRS 2010
In order to provide users of this report with further information, the notes on stated capital and borrowings have been re-presented when compared to the 2011 report.
For a better understanding of the group’s financial position, the results of its operations and cash flows for the year, these condensed annual financial statements should be read in conjuction with the group’s annual financial statements, from which these condensed financial statements were derived.
The auditors, Deloitte & Touche, have issued their unmodified audit opinion on the group’s annual financial statements for the year ended 30 September 2012. The audit was conducted in accordance with International Standards on Auditing. This preliminary report has been derived from the group’s annual financial statements and is consistent in all material respects. A copy of their audit report is available for inspection at the company’s registered office. The auditor’s report does not necessarily cover 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 work, they should obtain a copy of that report together with the accompanying financial information from the registered office of the company.
30 Sept 30 Sept2012 2011
Audited AuditedRm Rm
2. Headline earnings per share Headline earnings per share (cents) – basic 162 165 – diluted 160 164 – basic (excluding BBBEE IFRS 2 charges) 185 167 – diluted (excluding BBBEE IFRS 2 charges) 183 166 Determination of headline earnings per share (cents) Earnings per share 161 164 Adjusted for:– Impairment losses on financial assets — 1 – Loss on disposal of property, plant and equipment and intangible assets 1 —
Headline earnings per share 162 165 BBBEE IFRS 2 charges (net of taxation) 23 2
Headline earnings per share (excluding BBBEE IFRS 2 charges) 185 167
9 For the year ended 30 September 2012
NOTES continued
Headline earnings (Rm)Profit for the year 846 865 Impairment on financial assets 1 4Reversal of impairment (1) —Loss/(profit) on disposal of property, plant and equipment and intangible assets 3 (1)Taxation on loss/(profit) on disposal of property, plant and equipment and intangible assets (1) —
Headline earnings 848 868 Attributable to:– Ordinary shareholders 769 788 – Other shareholders 79 80
Headline earnings 848 868 BBBEE IFRS 2 charges (net of taxation) 123 10
Headline earnings (excluding BBBEE IFRS 2 charges) 971 878 Attributable to:
– Ordinary shareholders 881 797 – Other shareholders 90 81
3. Profit before taxationIncluded in profit before taxation are:Amortisation of intangible assets 22 19 Consulting fees incurred on BBBEE transaction 15 —Depreciation 439 417 IFRS 2 charges:– BBBEE IFRS 2 charges 123 11 – cash settled IFRS 2 charges 22 5 – equity settled IFRS 2 charges 19 —Impairment on financial assets — (4)Restructuring costs — 31
4. Finance costsBank and other borrowings 52 55 Long-term loans 166 166 BBBEE funding transaction 136 118
– dividends on redeemable preference shares 68 57 – long-term borrowings 68 61
Finance lease interest 4 5 Fair value losses/(gains) on financial assets 3 (9)Unwinding of discount on rehabilitation provisions 22 18
383 353 Capitalised to plant and equipment (6) —
377 353
30 Sept 30 Sept2012 2011
Audited AuditedRm Rm
2. Headline earnings per share (continued)
10 For the year ended 30 September 2012
NOTES continued
5. Stated capitalNumber of shares and weighted average number of shares Shares (000) Shares (000)
Number of sharesTotal shares in issue at beginning of the year 586 170 586 170 Less: Treasury shares owned by wholly-owned group subsidiary company — (20 140)Less: Cancellation of treasury shares owned by wholly-owned group subsidiary company^ (20 140) —Less: Shares held by consolidated BBBEE trusts and funding SPVs treated as treasury shares* (37 991) (37 991)Less: Shares held by consolidated Porthold Trust (Private) Limited treated as treasury shares@ (1 285) (1 285)Less: Shares purchased in terms of the FSP share incentive scheme treated as treasury shares# (3 080) —
Total shares in issue (net of treasury shares) 523 674 526 754
– Ordinary 475 116 478 196 – Other$ 48 558 48 558
Weighted average number of shares– Used for earnings and headline earnings per share 476 009 478 196 – Used for dilutive earnings and headline earnings per share 481 470 481 269 – Used for cash earnings per share 524 567 526 754
Shares are weighted for the period in which they are entitled to participate in the net profit of the group.
Rm Rm
Stated capital~ (1 181) —
Issued share capitalBalance at beginning of the year 53 53Transfer to stated capital~ (53) —
Balance at end of the year — 53
Share premiumBalance at beginning of the year (1 144) (1 144)Securities transfer tax on cancellation of shares^ (1) —Shares purchased in terms of the FSP share incentive scheme treated as treasury shares# (89) —
(1 234) (1 144)Transfer to stated capital~ 1 234 —
Total share capital and share premium — (1 091)^ The treasury shares owned by PPC Cement (Pty) Ltd, were bought back by PPC Ltd and cancelled after the repurchase. * In terms of IFRS SIC Interpretation 12 (Consolidation – Special Purpose Entities), certain of the BBBEE trusts and trust funding SPVs are consolidated, and as a result, shares owned by these entities are carried as treasury shares on consolidation.
@ Shares owned by a Zimbabwean employee trust company treated as treasury shares in terms of IFRS SIC Interpretation 12. # In 2011 and 2012, shareholders approved the forfeitable share plan (FSP) to retain and incentivise employees of PPC. During the year, the company acquired 3 079 853 shares on the JSE and these shares are carried as treasury shares.
$ The shares issued to the Strategic Black Partners and Community Service Groups, in terms of PPC’s first BBBEE transaction, have been pledged as security for their funding obligations and as a result are treated as a separate class of equity.
~ The company increased its authorised ordinary shares and changed its ordinary shares to ordinary shares with no nominal or par value. The preferences, rights, limitations and other terms attaching to the no par value shares in the company will be the same preferences, rights, limitations and other terms which are attached to the current authorised ordinary shares.
30 Sept 30 Sept2012 2011
Audited AuditedRm Rm
11 For the year ended 30 September 2012
NOTES continued
30 Sept 30 Sept2012 2011
Audited AuditedRm Rm
6. Borrowings– Long term* 1 518 1 517– Finance lease liability@ — 14– Preference shares^ 110 126
1 628 1 657BBBEE funding transaction~ 1 088 1 042
– Preference shares 495 494– Long-term borrowings 593 548
Long-term borrowings 2 716 2 699Short-term borrowings and short-term portion of long-term borrowings 869 811
Total borrowings 3 585 3 510
* Comprises a bullet loan, bearing interest at a fixed rate of 10,86% p.a., and is repayable in December 2016, with interest payable semi-annually.
@ Bears interest at a fixed rate of 13,1% with interest and capital repayable annually with the last payment payable in June 2013. ^ Redeemable preference shares bearing semi-annual dividends, with variable interest rates linked to prime and fixed rates between 6,92% to 9,37% p.a. and compulsory annual redemptions ending December 2016.
~ Redeemable preference shares bearing semi-annual dividends, with variable interest rates linked to prime and fixed rates between 7,39% to 9,54% p.a. with compulsory annual redemptions until December 2016, and loans bearing interest, after giving effect to fixed-for-variable interest rate swaps, at a rate of 11,36% p.a., with interest and capital repayable in December 2013.
In terms of IFRS, these long-term borrowings have been consolidated as PPC Ltd has provided guarantees for funding that had an outstanding balance of R1 066 million as at 30 September 2012 (2011: R999 million). The company’s borrowing powers are not restricted.
7. Acquisition of equity in associates– Pronto Holdings (Pty) LimitedDuring June 2012, PPC acquired a 25% stake in Pronto Holdings (Pty) Limited for R70 million. The purchase consideration was determined using an EBITDA multiple less net debt. A second tranche for 25% will be paid on the first anniversary of the transaction and the remaining 50% at the conclusion of the second anniversary.
– Habesha Cement Share CompanyDuring July 2012, PPC acquired a 27% equity stake in an Ethiopian public share company Habesha Cement Share Company for a purchase consideration of R102 million.
8. Acquisition of quarries in BotswanaIn October 2011 all conditions precedent with regards to the transaction to acquire three aggregate quarries in Botswana were met. The transaction value amounted to R52 million of which R42 million was paid during the 2012 financial year. The purchase consideration outstanding is payable in equal instalments on the first and second anniversaries of the transaction. The purchase price is allocated as follows: Property, plant and equipment 26 —Intangible assets 28 —Current assets 5 —Long-term provisions and deferred taxation (7) —
Total consideration 52 —Consideration paid during the year 42 —
Consideration payable 10 —
Impact of the transaction on the results for the year:Revenue 18 —Operating loss (4) —Loss attributable to shareholder (8) —Impact on EPS and HEPS (cents per share) (1) —
12 For the year ended 30 September 2012
NOTES continued
9. Commitments– Contracted capital commitments 192 275 – Approved capital commitments 125 364
Capital commitments* 317 639 Operating lease commitments 19 17
336 656
*Excludes the following:The second 25% tranche on acquisition of Pronto Holdings (Pty) Limited is payable in the next year with the remaining 50% payable in 2014. The purchase consideration is determined using an EBITDA multiple less net debt. The total acquisition cost is not expected to exceed R400 million.
Commitments for capital expenditure are stated in current values which, together with expected price escalations, will be financed from surplus cash generated from operations and borrowing facilities available to the group. The company received environmental approval for the second phase of its Western Cape upgrade strategy. Detailed design continues and will incorporate the conditions included in the environmental authorisation.
10. Segment analysisRevenueCement 6 246 5 814 Lime 838 772 Aggregates 299 271
7 383 6 857 Less: Inter-segment revenue (37) (31)
Total revenue 7 346 6 826
– South Africa 5 786 5 633 – Other Africa 1 560 1 193
EBITDACement 2 087 1 942 Lime 188 154 Aggregates 56 56 BBBEE trusts and trust funding SPVs (4) (6)
EBITDA 2 327 2 146
Operating profit Cement 1 682 1 551 Lime 151 122 Aggregates 37 43 BBBEE trusts and trust funding SPVs (4) (6)
Operating profit before item listed below: 1 866 1 710BBBEE IFRS 2 charges (123) (11)
Operating profit 1 743 1 699
AssetsCement 6 153 5 768 Lime 467 440 Aggregates 285 210 BBBEE trusts and trust funding SPVs 2 1
Total assets 6 907 6 419
11. Events after the reporting dateIn terms of the second phase BBBEE transaction approved in September 2012, 26 757 780 shares were be issued to the Employee Share Trust, 1 967 484 shares to Bafati Investment Trust and 10 624 413 shares to the SBP Vehicle on 1 October 2012. These entities will be consolidated into the PPC group during the term of the transaction in accordance with IFRS. The shares will only participate in 20% of the dividend payable. For further details on the second BBBEE transaction, refer to the circular to shareholders on the group’s website.
30 Sept 30 Sept2012 2011
Audited AuditedRm Rm
13 For the year ended 30 September 2012
ADMINISTRATION
DISCLAIMER
This document including, without limitation, those statements concerning the demand outlook, PPC’s
expansion projects and its capital resources and expenditure, contain certain forward-looking views. By
their nature, forward-looking statements involve risk and uncertainty and although PPC believes that the
expectations reflected in such forward-looking statements are reasonable, no assurance can be given that
such expectations will prove to have been correct. Accordingly, results could differ materially from those
set out in the forward-looking statements as a result of, among other factors, changes in economic and
market conditions, success of business and operating initiatives, changes in the regulatory environment and
other government action and business and operational risk management. While PPC takes reasonable care
to ensure the accuracy of the information presented, PPC accepts no responsibility for any consequential,
indirect, special or incidental damages, whether foreseeable or unforeseeable, based on claims arising out of
misrepresentation or negligence arising in connection with a forward-looking statement. This document is
not intended to contain any profit forecasts or profit estimates. The information published in this report has
been audited.
Directors:
BL Sibiya (Chairman), P Stuiver* (Chief executive officer), S Abdul Kader, P Esterhuysen,
K Gordhan (CEO designate), SG Helepi, ZJ Kganyago, AJ Lamprecht, NB Langa-Royds, MP Malungani,
SK Mhlarhi, B Modise, MMT Ramano, TDA Ross, J Shibambo *Dutch
Registered office:
180 Katherine Street, Sandton, South Africa
(PO Box 787416, Sandton, 2146, South Africa)
Transfer secretaries:
Link Market Services SA (Pty) Limited, 11 Diagonal Street, Johannesburg, South Africa
(PO Box 4844, Johannesburg, 2000, South Africa)
Transfer secretaries Zimbabwe:
Corpserve (Private) Limited, 4th Floor, Intermarket Centre, Corner 1st Street/Kwame Nkrumah Avenue,
Harare, Zimbabwe (PO Box 2208, Harare, Zimbabwe)
These results and other information is available on the PPC website: www.ppc.co.za
BASTION GRAPHICS
www.ppc.co.za