Audited Annual Resultsfor the year ended 30 September 2009Paul Stuiver - CEO

2

Agenda

• Key Events• 2009 Highlights

• Financial review

• Operational review• Cement, Lime, Aggregates

• Zimbabwe

• Leadership changes

• Competition commission investigation

• Outlook• Operations, markets & pricing

• Capex, gearing & dividends

• Response to investor comments

3

Key events

• Lower economic activity Lower sale volumes for all products• Cement -10%, Lime -29%, Aggregates -6%

• Accounting for BBBEE transaction• Effective 15 Dec 2008• Recent BBBEE level 3 accreditation

• Changes in leadership • Retirement/change of CEO, resignation of COO

• Consolidation of Porthold in Zimbabwe• From 30 Sept 2009

• Competition commission investigation• Conditional leniency granted

• Resilience – Good performance – Solid platform

4

2009 Financial highlights

• Revenue R6.78bn 9% [R6.25bn]

• EBITDA R2.73bn 8% [R2.54bn]

• EBITDA margin 40.3% [40.7%]

• Cash generated from Ops. R2.60bn 2% [R2.55bn]

• Operating profit* R2.42bn 4% [R2.32bn]

• Headline earnings per share* 257 cps -9% [283 cps]

• Total dividend 200 cps -11% [225 cps]* Excluding impact of the BBBEE IFRS 2 charges and take-on gain arising from consolidation of Porthold

5

2009R million

2008R million

Cash flow from operating activities

Operating cash flows before movement in working capital 2 735 2 563

Net investment in working capital (133) (17)

Net (finance costs) / investment income (229) (102)

Taxation paid (645) (800)

Equity-settled share incentive scheme receipt - 2

Cash available from operations 1 728 1 646

Capital investment and other movements (1 018) (809)

Net funding raised 1 651 240

Consolidated treasury shares: BBBEE transaction (1 190) -Acquisition of treasury shares by consolidated subsidiary

company- (753)

Issue of shares 5 -

Net cash flow before dividends paid 1 176 324

Dividends paid (1 195) (1 401)

Net cash outflow for the year (19) (1 077)

Summary cash flow statement

Strong operating cash flow maintained

Increased cement & clinker inventoryIncreased maint. spares for new plant

Capital invested R921m

Porthold consolidation had no impact on cash flow for the year

Impact of BBBEE transaction

1

2

3

4

6

Summary income statement

2009R million

2008R million

% Change

Revenue 6 783 6 248 9

EBITDA 2 733 2 541 8

Depreciation and amortisation (315) (218) 44

BBBEE IFRS 2 charges (490) -

Take-on gain arising from consolidation of Porthold 213 -

Operating profit 2 141 2 323 (8)

Finance costs (363) (153) (137)Investment income 65 84 (23)

Profit before exceptional items 1 843 2 254 (18)

Exceptional items - 2

Share of associate’s retained profit 7 10

Taxation (722) (767) 6

Profit for the year 1 128 1 499 (25)

HEPS (cents) (excluding BBBEE IFRS 2 charges and take-on gain arising from consolidation of Porthold)

256.8 282.6 (9)

CASH EARNINGS PER SHARE (cents) 328.6 310.9 6

DPS (cents) 200 225 (11)

Sales volumesCement -10%Lime -29%Aggregates -6%

Finance costDue to increased borrowings R84mDue to BBBEE debt consolidated R91m Due to lower interest capitalised R27m

DividendCover 1.29

Comparable net profit : - 9%

5

6

7

8

9

DepreciationR60m additional due to Dwaalboom kiln2

7

Summary balance sheet

ASSETS2009

R million2008

R million

Non-current assetsProperty, plant and equipment 3 941 2 813Other 254 383

Current assets Inventories 557 363Trade and other receivables 819 751Cash and cash equivalents 248 224

TOTAL ASSETS 5 819 4 534EQUITY AND LIABILITIES Capital and reserves 915 1 713

Non-current liabilities

Long-term borrowings 2 628 55

Deferred taxation 469 299

Provisions and other non-current liabilities 269 157

Current liabilities Short-term borrowings 764 1 619

Trade and other payables 774 691

TOTAL EQUITY AND LIABILITIES 5 819 4 534

Porthold additional PPE R508m

Porthold additional stock R87m

BBBEE transaction treasury shares

Short-term converted to long-term borrowings

Porthold additional cash R43m

10

11

13

14

15

12No significant change in debtors days or bad

debt

8

Segmental analysis*

Revenue

88%

4%8%

EBITDA

93%

3%4%

Operating profit3%

4%

93%

* Excluding impact of BBBEE IFRS 2 charges and Porthold take-on gain

Total assets3%

7%

90%

Cement contribution to EBITDA increased to 93% during 2009 [2008 : 89%]

Higher than most other cement companies who tend to be more invested in aggregates and ready-mix

Cement

Lime

Aggregates

9

Segmental analysis* cont* Excluding impact of BBBEE IFRS 2 charges and Porthold take-on gain

Cement• EBITDA increased 11% to R2.53 billion [2008: R2.28 bn]

• EBITDA margin 42.5% in line with 2008

• Operating profit increased 6% to R2.26 billion [2008: R2.10 bn]

• Higher efficiencies & lower input cost inflation during H2

Lime• EBITDA decreased 28% to R121 million [2008: R167 million]

• EBITDA margin reduced to 22.2% [2008: 27.9%]

• Lower demand from steel & alloy markets

• Energy consumption at the lowest levels ever & contractual price recovery during H2

Aggregates• EBITDA decreased 10% to R84 million [2008: R93 million]

• EBITDA margin reduces to 28.4% [2008: 33.1%]

• Increased competition in construction markets and reduced demand from steel & alloy sectors

Cement EBIT DA

0

500

1,000

1,500

2,000

2,500

3,000

2007 2008 2009 H1 - '09 H2 - '09

Rm

-

5

10

15

20

25

30

35

40

45%

Lime EBIT DA

0

50

100

150

200

2007 2008 2009 H1 - '09 H2 - '09

Rm

-

5

10

15

20

25

30

35

40

45

50

%

Aggregates EBIT DA

0

25

50

75

100

2007 2008 2009 H1 - '09 H2 - '09

Rm

-

5

10

15

20

25

30

35

40

45

50%

Operational Summary

11

Cement industry overview

• Global cement demand (1H2009)• Severe contraction in “developed” economies, typically -20% or worse • Mixed results in “emerging” economies, typically from -15% to +15%

• SA regional cement demand -11.4% for the financial year• Metropolitan-residential sector declined, Gauteng (-20%) & Western Cape (-27%)• Resilience in “rural”-residential sector Limpopo, Mpumalanga & KwaZulu Natal• Construction sector growth 11%, benefiting from infrastructure projects • Botswana market +7% also benefiting from infrastructure projects

• Industry clinker and cement imports down to 125,000t (2008: 1.25mt)• Some imports in Q4 2008, nil in Q3 2009• New clinker capacity commissioned by PPC & Lafarge (estimated 2.25mtpa)• New cement milling capacity commissioned by Afrisam (reported 0.4mtpa)

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Cement industry overview (continued)

Industry Cement Sales2009*

(000 tons)2008*

(000 tons)%

Change

Gauteng 4 053 5 083 -20KwaZulu Natal 2 132 2 135 0Western Cape 1 201 1 634 -26Limpopo 1 136 1 127 1Mpumalanga 1 119 1 119 0Eastern Cape 859 979 -12North West 862 909 -5Free State 473 536 -12Northern Cape 225 254 -11

Botswana 647 604 7

Namibia 359 382 -6

Swaziland 130 145 -10

Lesotho 122 123 -1

Regional total 13 318 15 030 -11Export 234 148 58

* Financial Year – October to September

Resellers50%

Readymix Producers

18%

Other2%

Mining2%

Concrete Product Manufacturers

13%

Blenders5%

Building Construction

4%Civil Construction

6%

-30% -25% -20% -15% -10% -5% 0% 5% 10% 15%

Blenders

Building Const.

CPM

Readymix

Mining

Resellers

Other

Civil Construction

2009* Industry Sales per Distribution Channel

2009* Growth per Distribution Channel

13

• PPC regional sales declined 10%• Includes the full impact of Western Cape 27% decline• Growth in Limpopo, Mpumalanga, KZN and Botswana markets

• No cement imported into South Africa by PPC• PPC imports, to maintain Mozambique market were phased out during the year• Replaced by sales from PPC plants in South Africa

• Exports 210,000 ton, mostly to West-Africa & Mozambique • Opportunity to grow if Rand:$ exchange rate weakens• New opportunities constantly being explored

Cement - Market

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Cement – Cost inputs

Cement, delivered 2009% Increase

2009% of total

cost

Distribution costs including fuel 10 ~27Coal including delivery to plant 50 ~12

Maintenance 35 ~10

Electricity 30 ~5

• Costs in 2008 up approx. 15%• Costs in 2009 up approx. 20%

• Coal contracts negotiated at peak in August 2008. Some relief in H2• Opportunity for maintenance with kilns stopped• Some relief from lower diesel costs in H2

• Fixed cost component ± 35%

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Cement - Efficiency

850

900

950

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

• Coal consumption reduced by commissioning Dwaalboom Kiln 2 and stopping older, less efficient units

• Fuel consumption reduced by optimising outbound and inbound logistics

• Electricity consumption reduced by new equipment & new technology e.g. variable speed drives

• Electricity cost reduced utilising off-peak tariffs

• Ntšhafatso project will reduce PPC’s overall electric energy consumption by 1% in 2010

• Progress being made on reducing CO2 emissions

kg CO2 per ton of Cement

PPC

World average

80%

85%

90%

95%

100%

105%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

PPC’s energy consumption per ton

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Cement - Projects

• Se Kïka (new Riebeeck plant)• Awaiting approval of EIA• Limited capex in 2010 – 2012• Revised demand allows more

flexibility with timing

• Ntšhafatso (Hercules mill upgrade)• Zero lost time injuries in 1.5 million hours• Commissioning Q2 FY2010• Within R700m budget• Vertical roller mill – energy efficient

View of the clinker (left) and cement (right) silos – Ntšhafatso Project

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Lime & Aggregates

• Demand for Lime/Burnt Products reduced by 29% compared to 2008• Primarily affected by downturn in local steel and alloy industries• Uncertainty remains regarding timing and quantum of recovery in steel industry• Recovery of input cost inflation (contractual) improved margins in H2• Optimisation of plant and efficiencies a priority, record low energy consumption

achieved during 2009

• Aggregate volume reduced by 6%, revenue up 5%• Aggregate market very competitive in Gauteng• Metallurgical stone demand reduced due to downturn in steel industry• Botswana aggregate demand positive due to government investment in roads• Mooiplaas, Laezonia and Kgale plants operated well during the year

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Porthold Zimbabwe

• Clinker production at Colleen Bawn• Approx. half-way between Bulawayo and

Beit Bridge • Limestone mine plus kiln with 5-stage

preheater and pre-calciner

• Milling & packing plant near Bulawayo• Cement extension with slag from Gweru

• Modern technology• Extensively updated in 1990’s• 760,000 ton per annum cement capacity• Equipment in good condition• Excellent safety record• Coal and electricity supplies still erratic

Colleen Bawn Plant

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• Utilisation and sales less than 10% earlier this financial year

• Steady increase in demand since adopting US$/Rand• Demand assumed mainly for residential & light-industrial purposes• Also exports to Zambia & Botswana

• Selling prices in line with regional prices

• Recent utilisation ~45% or 380 000 tpa

Porthold Zimbabwe (continued)

Porthold Domestic Cement Sales

0

5

10

15

20

25

30

35

Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09

000

tons

Bulawayo Plant

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Leadership changes

• John Gomersall retired 30 June 2009• Orrie Fenn announced resignation early August 2009

• First 100 days• Investor meetings, conferences & investor day• Plant & site visits to all major sites except Botswana• Non-executive directors and service providers• 5-year strategic plan & budget• Worked closely with Executives in cement division

• Geology, mining, operations, projects, technical, sales & marketing and finance • Organisational performance (HR) – Reviewed remuneration, retention,

competencies, succession and transformation of top 3 management layers.

• Outlined organisational changes/structure • 3 year plan • Nothing spectacular, a step-by-step approach, not “big bang”• Currently with board nominations committee

• First announcement before end 2009

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Competition Commission

• Internal/External legal team reporting to Board sub-committee• Discovered market-sharing arrangement in 1990’s• A few former employees made and knew about the arrangements

• Immediately notified Competition Commission (June)• Submitted detailed leniency application (Aug)• Extensive co-operation with Commission (Aug-Oct)• Conditional leniency agreement concluded (Nov)

• Findings• Market-share arrangements disguised as “independent” action in late 1990’s• Inappropriate disclosure of detailed sales information since 1990’s

• Conditional leniency for market-sharing & disclosure of sales information• Conditional on ongoing co-operation with Commission’s investigation• Therefore premature to discuss details of events, timing or people involved• None of the individuals involved still employed at PPC

Outlook

23

Cement - Markets

• South Africa• Mixed signals about global recovery• Government remains committed to job creation and infrastructure development• Forecast GDP growth as soon as 2010• Interest rates down 500pts - should filter through to the residential market• New projects unlikely to start before January 2010• Effect of extended holidays during world cup uncertain

• Zimbabwe• Political and economic situation still precarious with no certainty for the future• October sales continued to show positive growth

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10

12

14

16

18

2 0

2 2

2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 10 2 0 11

Cement – Supply & demandMt

Growth 7.4% -3.9% -13%? 0%? 6%?

PPC 1.25Mt/yr, Cimpor 0.6Mt/Yr: (2009)

Latest Revision : November 2009

Lafarge 1Mt/yr PPC Mill 0.3Mt/yr, Afrisam Mill 0.4Mt/yr

Contracted / Building

Completed

Industry demand*Industry maximum capacity*Capacity excluding old PPC kilns*

90% utilisation

80% utilisation

* Excludes demand and capacity in Zimbabwe

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Cement – Cost

Cement, delivered

2009% of

total costDistribution costs including fuel ~27Coal including delivery to plant ~12

Maintenance ~10

Electricity ~5

Electricity costs• A 45% electricity cost increase

would result in a 2.3% direct impact on total costs.

• Indirect impact from input costs yet to be determined

• e.g. Transnet Freight Rail

• July 2010 price increase will be dependant on cost trends in H1 2010

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Cement - Prices

• Rumours of recent price erosion in the cement market• Not for PPC, our prices have held during the financial year

• Cost outlook • Energy costs (in addition to electricity) a concern• Expect further efficiency improvements from Ntšhafatso • And from kilns currently shut down for maintenance• Recent, single-figure salary increases

• Pricing outlook • In response to customer requests we have given 60 days notice on next price

increase: • 5.5% average increase, effective 1 January 2010• However, as detailed in previous slides, if the proposed electricity price increases are

implemented, we will have to process a further price increase during 2010

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Cement - Prices

Retail Price of 50kg Bag of Cement(SA prices include 14% VAT)

-

20

40

60

80

100

120

140

160

180

US

DRC

Fran

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Bra

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Ango

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Irela

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Zam

bia

Nig

eria

Ken

ya

Moz

ambi

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Tanz

ania

Ecua

dor

Chi

le

Sou

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frica

- JH

B

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frica

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Sou

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frica

- PT

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Yem

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Spa

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Per

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Syr

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Gre

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Sri

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Indi

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R/b

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PPC Research – Snap internet & telephonic survey R7.70/$

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Capital expenditure

2009 2010 2011

Dwaalboom Kiln 2 (Batsweledi) expansion

126 - -

Hercules Mill (Ntšhafatso) expansion

370 120 -

Riebeeck (Se Kïka) expansion - 50 20

Other expansion projects 34 30 30

Expansion capexExpansion capex 530 200 50

Replacement capex 380 500 – 600 600 - 700

Environmental capex 11 90 100

Porthold - 80 40

Total capexTotal capex 921 850 – 950 800 - 900

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Gearing & Dividends

• Current gross debt to EBITDA cover of 1.2 times is well within our conservative target of 2 to 3 times cover

• Dividend cover will remain in the target range of 1.2 - 1.5 times normalised earnings

Slurry Plant

30

Response to investor comments

Key topics:

1. PPC share valued for predictability, cash flow and dividend policy• Concern if this will be maintained given capex requirements for

capacity replacement/expansion.

2. PPC acknowledged as well-managed and efficient with good margins • Concern if margins/prices can be maintained with industry over-

capacity

3. PPC enjoyed strong organic growth in buoyant SA market• Where will future growth come from?

31

Response to investor comments (continued)

1. Need for capacity expansion/replacement delayed by ~3 years due new economic environment• We now foresee 2 significant capacity expansions during the next 12 years• Smaller replacement mainly to improve efficiencies, especially energy• These can be funded by internal cash flows and/or modest borrowings

2. Pricing/Margins• Our view is that current prices are at the appropriate level to ensure a long-

term sustainable local cement industry i.e. • Acceptable returns (current) and affordability of future capacity expansion that will be

required for a growing economy/population• Pricing philosophy will be aimed at maintaining current margins

3. Future growth• Re-look at opportunities in sub-Saharan Africa

• consider establishment of a permanent business-development team• Projects must be value enhancing and make strategic sense• Initial steps likely to be careful and modest

32

Thank You

Questions ?

Annexures

34

Gearing

30 Sept ’09

R million

8-year bullet loan (used to substitute short-term borrowings) 1 517

BBBEE SPV / Trusts redeemable preference shares and loans consolidated 1 103

Total funding raised with the BBBEE transaction 2 620

Other borrowings 772

Total borrowings 3 392

Gross debt to EBITDA (excluding IFRS 2 charges) of 1.2 times areGross debt to EBITDA (excluding IFRS 2 charges) of 1.2 times are well within the targeted level of 2 to 3 well within the targeted level of 2 to 3 times EBITDAtimes EBITDA

35

Variable

Finance costs (before interest capitalised)

2009 (% of total funding)

25%

75%

2009 R11mR8m

R89m

R266m

Bank and other borrowings

Finance lease interest

BBBEE funding transaction

Unwinding of discount on rehabilitation provision

• 89% of BBBEE transaction debt swapped for fixed interest rates

• EBITDA interest cover of 7.7 times [2008: 16.6 times]

• Interest rates varying from 8.91% to 11.20%

• Finance lease interest rate 13.10%

2008R10m

R9m

R182m

Fixed

36

Full year 2009 - Segmental analysis*

2009R million

2008R million

% change

Cement

EBITDA 2 528 2 281 11%

EBITDA margin 42.5% 42.4% 0.1% pts

Operating profit 2 255 2 100 +6%

Lime

EBITDA 121 167 -28%

EBITDA margin 22.2% 27.9% -5.7% pts

Operating profit 91 141 -35%

Aggregates

EBITDA 84 93 -10%

EBITDA margin 28.4% 33.1% -4.5% pts

Operating profit 72 82 -12%

GROUP

EBITDA 2 733 2 541 8%

EBITDA margin 40.3% 40.7% -0.4% pts

Operating profit 2 418 2 323 +4%

* Excluding impact of BBBEE IFRS 2 charges and Porthold take-on gain

37

Contacts

Paul Stuiver Chief Executive Officer

Peter Esterhuysen Chief Financial Officer

Kevin Odendaal Executive Investor Relations

www.ppc.co.zaTel. 011 386 9000

38

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, and the information published in this document is unaudited.