DELIVERING ON STRATEGIC COMMITMENTS IN A CHALLENGING ENVIRONMENT UNAUDITED RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2019

2

CONTENTS

Introduction(CEO: Roland van Wijnen)

Group results (CFO: Ronel van Dijk)

Summary(CEO: Roland van Wijnen)

01

02

03

04

05

Southern Africa operational review (MD SA – Njombo Lekula)

International operational review (MD International – Mokate Ramafoko)

3

1.1 COMPANIES THAT TRULY FOCUS ON SUSTAINABILITY WILL THRIVE

STRATEGY

ENVIRONMENTAL SOCIAL

FINANCIAL

4

1.2 PPC HAS THE FOUNDATION FOR A SOLID INVESTMENT CASE

4

Portfolio effectInternationaldelivering good results

Market leader Leadership position in 80% of markets we operate in

SSA FootprintWell developed portfolioin growing markets

Asset baseWorld class asset base, c.70% new capacity

Our peopleExperiencedteam

Financial durability Resilient through economic cycles

06

05

01

02

03

04

• Purpose led

• Common values

• Leadership competencies designed

PEOPLE

5

1.3 OVER THE LAST 24 MONTHS PROGRESS ON STRATEGIC VALUE DRIVERS HAS BEEN MADE

• Recognised for our premium products

• Delivering on our brand promise –“Strength Beyond”

• Value added technical support

• Improved route to market strategies in all markets

CUSTOMERS

• Increased average selling prices in SA by 8 – 10%

• Realised R65/tonne profit improvement in SA Cement

• Improved EBITDA from Rwanda and DRC

• Positive free cash flow

FINANCIAL

• RSA and Zimbabwe fixed cost reduced due to network optimisation phase 1

• Rwanda and DRC output increased to serve the market

• New technology in transport management to reduce variable cost

• Restructured head office to reduce overhead costs

OPERATIONAL

1.4 MEASURABLE INITIATIVES TO ENHANCE AND CREATE VALUE ARE BEING DEVELOPED

6

Outcomes

Guiding principles

02Measurable objectives to:Improve economic value creation, social transformation and environmental performance

Strategy Design

01Purpose led and performance driven

02Simplify, Standardize, Automate

03Cash & value generation

04Premium products at the lowest possible cost

01 Clear strategic positioning

2. GROUP FINANCIAL RESULTS

1. Gross debt stable at R5.1bn(R5bn: March 2019)

2. South African gross debt constant at R1.7bn

3. International gross debt of R3.4bn (R3.3bn: March 2019)

Financial Position

8

2.1 KEY METRICS | PROFIBILITY ADVERSELY IMPACTED BY PPC ZIMBABWE

1. Group revenue R4.9bn (Sept 2018: R5.6bn)

2. Group EBITDA R868m (Sept 2018: R1.0bn)

3. Hyper inflation accounting and currency devaluation impacted PPC Zimbabwe results

4. Group revenue (-1%) excluding PPC Zimbabwe

5. Group EBITDA (-3%) excluding PPC Zimbabwe

6. EPS -0.4 cents and HEPS 6 cents

Profitability

2. FAIR VALUE AND FOREIGN EXCHANGE LOSS

Fair value and foreign exchange loss include:• Expected credit losses of R307 million relating to Zimbabwe financial assets

• R76 million raised against the Zimbabwe financial asset arising as a result of the Zimbabwe debt being settled by the Reserve Bank of Zimbabwe on a 1:1 basis as legacy debt

• R231 million raised against the PPC Limited Zimbabwe blocked funds and Stanbic cash

• A gain of R43 million relates to the translation into Rands of foreign currency denominated monetary items

3. NET MONETARY GAIN

The application of hyperinflationary accounting resulted in a net monetary gain amounting to R543 million before tax (R445 million after tax)

2.2 INCOME STATEMENT | SIGNIFICANTLY IMPACTED BY NON-CASH ITEMS AND RSA TRADING ENVIRONMENT

9

4. EQUITY-ACCOUNTED INVESTMENTS

The equity investment in the integrated cement plant in Ethiopia was fully impaired, resulting in an impairment loss of R93 million

1. ADMIN AND OTHER OPERATING EXPENSES

Admin and other operating expenses include once-off head office restructuring costs of R83 million

* Reported EPS reflects the impact of hyperinflation in PPC Zimbabwe

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the six months ended 30 September 2019

Six months Six months Twelve months

ended ended ended

30 September

30

September 31 March

2019 2018 % Change 2019

Revenue 4 948 5 597 (12) 10 409

Cost of sales (4 023) (4 494) (10) (8 399)

Gross profit 925 1 103 (16) 2 010

Administrative and other operating expenditure (555) (580) (4) (1 083)

Operating profit before item listed below 370 523 (29) 927

Empowerment transactions IFRS 2 charges (16) (16) - (33)

Operating profit 354 507 (30) 894

Fair value and foreign exchange (loss)/gain (270) 38 (811) (9)

Finance costs (327) (336) (3) (681)

Net monetary gain 543 - - -

Investment income 10 62 (84) 95

Profit before equity-accounted earnings 310 271 14 299

Loss from equity accounted investments (54) (19) 184 (67)

Impairments (93) (1) 9 200 (82)

Profit before taxation 163 251 (35.08) 150

Taxation (186) 9 (2 167) (6)

(Loss)/Profit for the period (23) 260 (109) 144

Attributable to:

Shareholders of PPC Ltd (6) 312 (102) 235

Non-controlling interests (17) (52) (67) (91)

(LOSS)/EARNINGS PER SHARE (CENTS)

Basic (0.4) 21 (102) 16

Headline 6 21 (73) 20

Rm

Revenue Rm Reported PPC Zimbabwe Ex- PPC Zimbabwe

Six months ended September 2019 4 948 501 4 447

Six months ended September 2018 5 597 1 086 4 511

Change (649) (585) (64)

% change (12%) (54%) (1%)

EBITDA Rm Reported PPC Zimbabwe Ex- PPC Zimbabwe

Six months ended September 2019 868 201 667

Six months ended September 2018 1 039 352 687

Change (171) (151) (20)

% change (17%) (43%) (3%)

2.3 PPC ZIMBABWE ADVERSELY IMPACTED BY INFLATION ACCOUNTING AND CURRENCY DEVALUATION

10

Note: The above figures exclude the elimination of inter-company transactions in PPC Ltd

1,039

-114 -15

-151

64 21

24 868

83 951

600

650

700

750

800

850

900

950

1 000

1 050

1 100

Sept 2018reportedEBITDA

SA cement SA Materials Zimbabwe Rwanda DRC Group services Sept 2019reportedEBITDA

Once-offrestructuring

costs

Sept 2019EBITDA (ex

once-off costs)

11

2.4 GROUP EBITDA IMPACTED BY SOUTHERN AFRICA AND ZIMBABWE

Group EBITDA Bridge (Rm)

* Group services includes Mozambique EBITDA loss of R1m (1H19: loss of R5m)

EBITDA margin 17.5%

EBITDA margin 18.6%

EBITDA margin 19.2%

+10%

Six Six

months ended months ended

September September %

Revenue (Rm) 2019 2018 change

Southern Africa cement 2 555 2 772 (8%)

SA Materials 1 079 1 107 (3%)

Zimbabwe 497 1 077 (54%)

Rwanda 514 402 28%

DRC 303 240 26%

Group 4 948 5 597 (12%)

52%

22%

10%

10%

6% Southern Africa cement

SA Materials

Zimbabwe

Rwanda

DRC

12

2.5 REVENUE | RWANDA, DRC COMPENSATED FOR RSA AND ZIMBABWE

Six months ended September 2019

50%

20%

19%

7%4% Southern Africa cement

SA Materials

Zimbabwe

Rwanda

DRC

Six months ended September 2018

17.4%

9.0%

29.0%

18.6%14.4%

7.9%

33.3%

17.5%

0.0%

10.0%

20.0%

30.0%

40.0%

Southern Africacement

SA Materials International Group

Six months ended September 2018 Six months ended September 2019

Six Sixmonths ended months ended

September September %

EBITDA (Rm) 2019 2018 change

Southern Africa cement 367 481 (24%)

SA materials 85 100 (15%)

Zimbabwe 201 352 (43%)

Rwanda 156 92 70%

DRC 81 60 35%

Group Services (22) (46) 52%

Group 868 1 039 (17%)

42%

10%

23%

18%

9%-3% Southern Africa cement

SA materials

Zimbabwe

Rwanda

DRC

Group Services

13

2.6 EBITDA l RWANDA, DRC PARTIALLY COMPENSATED FOR RSA AND ZIMBABWE

Six months ended September 2019

46%

10%

34%

9%

6%-4% Southern Africa cement

SA materials

Zimbabwe

Rwanda

DRC

Group Services

Six months ended September 2018

EBITDA MARGINS

Rm %

Profit before tax 163

Tax at S.A. standard rate 46 28

Adjusted for:

Non-taxable net monetary gain as a result of hyperinflation (152) (93)

Deferred tax impact of hyperinflation 115 71

Expected Credit Loss provisions impact 77 47

Impairment of equity accounted investment 26 16

TDB loan at 1:1 financial asset 19 11

Prior year tax (over)/under provision 16 10

Share of loss on equity accounted investment 15 9

Non-deductible expenses and other items 24 15

Total Tax Expense 186 114

2.7 TAX RATE RECONCILIATION

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2.8 FINANCIAL POSITION | STABLE DEBT POSITION

15

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONat 30 SEPTEMBER 2019

30 September 30 September 31 March

2019 2018 2019

ASSETS

Non-current assets 12,664 14,000 14,665

Property, plant and equipment 10,910 12,403 12,587

Right of use assets 117 - -

Goodwill 237 236 236

Other intangible assets 550 566 558

Equity-accounted investments 4 196 149

Other non-current assets 333 321 333

Financial assets 417 2 582

Deferred taxation assets 96 276 220

Non-current assets held for sale 71 41 92

Current assets 3,300 3,917 3,071

Inventories 1,552 1,255 1,276

Trade and other receivables 1,229 1,175 1,166

Taxation receivable 120 230 177

Cash and cash equivalents 399 1,257 452

Total assets 16,035 17,958 17,828

Equity attributable to shareholders of PPC Ltd 7,309 8,782 9,225

Non-controlling interests 110 162 115

Total equity 7,419 8,944 9,340

Non-current liabilities 5,429 6,552 5,628

Provisions 395 533 427

Deferred taxation liabilities 708 1,149 844

Long-term borrowings 3,930 4,595 4,064

Other non-current liabilities 311 275 293

Lease Liabilities 85 - -

Current liabilities 3,187 2,462 2,860

Short-term borrowings 1,201 641 938

Lease Liabilities 35 - -

Trade and other payables 1,907 1,803 1,919

Taxation Payable 44 18 3

Total equity and liabilities 16,035 17,958 17,828

Rm

1. IFRS 16 – Leases

• Right of use assets• Lease liabilities

5 002 -64 193 5 131

3 000

3 500

4 000

4 500

5 000

5 500

March 19 Net repayments Currency impact September 19

16

2.9 STABLE DEBT POSITION

CHANGES IN GROSS DEBT (Rm)

SA gross debt R1 700 million

Recourse gross debt R2 274 million

Non-recourse gross debt R1 157 million

SA gross debt R1 700 million

Recourse gross debt R2 150 million

Non-recourse gross debt R1 152 million

Refinancing group debt to lengthen maturity profile

Replace project finance debt with long term debt

Gross debt to EBITDA 2.9x (March 2019 : 2.6x)

2.10 WORKING TO IMPROVE MATURITY PROFILE

Current debt maturity profile (Rm)

-

500

1 000

1 500

2020 2021 2022 2023 2024 2025 2026 2027

Financial Years

International

RSA

Note: Includes DRC capital repayment moratorium

17

2 8923 038

2 058

921773

225

600800

0

500

1 000

1 500

2 000

2 500

3 000

3 500

FY15 FY16 FY17 FY18 FY19 1H20 FY20

Guidance

18

2.11 NORMALISED CAPEX CYCLE

GROUP CAPEX PROFILE (Rm)

MinMax

19

2.12 STRONG OPERATING CASH FLOW OFFSET BY WORKING CAPITAL INVESTMENT IN THE PERIOD

Group free cash flow bridge (Rm)

868

-44

824

-342

-282

23 -219

40

100

200

300

400

500

600

700

800

900

1 000

Sept 2019 reportedEBITDA

Other Operating cashflow

Working capital Net finance costs Taxation Net capex Free cash flow

Results impacted by Zimbabwe hyperinflation and devaluation of the currency :

Complicates comparability

Expected credit losses

Year-end results likely to be impacted similarly

Overall improved EBITDA margin excluding once-off restructuring costs

Strong operating cash flow

Stable debt position – lengthen maturity profile

2.13 SUMMARY

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3. SOUTHERN AFRICA OPERATIONAL REVIEW

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3.1 SA CEMENT OVERVIEW

Industry

1. Industry volumes are down 10 - 15% nationally

2. Muted consumer and industrial demand

3. Imports up 5% > 800kt calendar YTD August

4. Blender activity detracting from pricing and quality

Our focus areas

1. Improve financial returns by focusing on higher margin volumes, achieve real price increases, and cost reduction

2. Volumes - Entrench route to market strategies

3. Price leadership – Achieve effective average selling price above inflation

4. Achieve cost savings of R70/tonne

Actions taken

1. Achieved average selling price increases of 8 - 10%

2. Improved quality of customer base

3. Overheads down 23% excluding once-off restructuring costs

Financial impact

1. Market weakness was more severe than anticipated

2. Revenue down 8%

3. EBITDA R367 million (Sept 2018: 481 million)

4. EBITDA margins from 17.4% to 14.4%

5. EBITDA margin(ex once-off costs restructuring costs) 17.6%

• Demand in South Africa is likely to remain subdued

• The market remains competitive in the inland region, substandard quality

• Plans in place to be competitive against imports in the coastal region

• Engagement with the Government on imports through ITAC

• Integration with the materials business is expected to yield positive results

• The Botswana market is expected to benefit from infrastructural development due to growing mining sector

• Embed footprint optimisation

• Re-organisation of production and sales facilities

• Integration of blending facilities

• Enhancing efficiencies of operating plants

• Conversion of Port Elizabeth Factory to milling operation in accordance with environmental standards

• Improve plant reliability and output -enhance efficiencies

• Integration with ready-mix

• Optimisation of logistics

• Continue to maintain pricing momentum

• A focused route to market strategy

• Implementation of value added partnerships

• Focus on the Sure Range of products and introduce new products

• Innovative strategies to embed the local economic development (LED) strategy aimed at ease of doing business and delivery

PRICE COSTVOLUME

3.2 SA CEMENT | KEY STRATEGIC INITIATIVES

23

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3.3 SA MATERIALS | IMPORTANT FOR CHANNEL MANAGEMENT

1. Revenue growth of 6% with higher prices in certain products compensating for volume declines of 5%

2. Steel and allied sectors volumes remain constrained

3. Lower volumes and refractory and maintenance costs resulted in a 17% contraction in EBITDA

Lime

1. Revenue decline of 11% due to decreased volumes

2. Contraction in EBITDA due to higher fuel and maintenance costs

Aggregates

1. Readymix market remained competitive, pricing and volumes remained under pressure

2. Revenue declined by 6%, as volumes were under pressure due to weak demand

3. EBITDA recovery off a low base, due to improved cost control

Readymix and Ash

4. INTERNATIONAL OPERATIONAL REVIEW

1. Cost optimisation

2. Maintain market share

3. Maintain EBITDA margins

4. Ensure that the business remains self sustaining

5. Deleverage the business

1. Aligned cost base with activity levels

2. Secured volumes in construction

3. Prioritized domestic sourcing of inputs to reduce forex requirement

4. Secured input materials

5. Debt being repaid on a 1:1 to the US$

1. Volumes declined by 30 - 35%

2. Pricing has been aligned with local inflationary increases

3. Total cost of production down 24% in US$

4. Revenue and EBITDA in rands impacted by change in functional currency

1. Consumer price inflation and liquidity shortages impacting overall demand in the economy

2. Industry cement volumes down 15 – 20%

3. Imports increased to 8 -12% of the domestic market

4. Power supply instability

1. Maximise forex cash generation

2. Maintain EBITDA margins

3. Positioning for growth

4. Product optimisation and innovation

5. Leadership development and coaching

6. Secure strategic input materials

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4.1 ZIMBABWE

Our focus areas

Actions taken

Financial impactIndustry

Strategic initiatives

27

4.2 RWANDA

Strategic initiatives

1. Optimise plant efficiencies to operate at higher capacity utilisation

2. Enhance route to market

3. Stakeholder management

4. Increase in-country sourcing of raw materials

1. Ramped-up volumes post plant debottlenecking

2. Secured strategic input materials (e.g. limestone, extender, gypsum, etc.)

3. Continuous engagement with key stakeholders

1. Volumes increased by 20%

2. Pricing maintainedin US$

3. Total cost of production down by 11% in US$

4. Revenue + 28%

5. EBITDA + 70%

1. Infrastructure projects driving demand

2. Demand growing inline with GDP 7 – 8%

3. Under supplied market

1. Achieve design capacity

2. Secure strategic input materials (e.g. limestone, extender, gypsum, etc.)

3. Drive transfer of critical skills to locals

4. Capacity building at Supervisory level

Our focus areas

Actions taken

Financial impactIndustry

Strategic initiatives

1. Entrench route to market strategy

2. Achieve market share in line with capacity share

3. Optimise production costs

4. Lobby for an effective ban of imports

5. Restructure debt

1. Focused on profitable markets

2. Introduced premix products

3. Preserve price stability in the market

4. Continuous engagement regarding debt restructuring

5. Import ban extended

1. Volumes growth maintained

2. Market prices stabilised

3. Total cost of production down 9% in US$

4. Revenue +26%

5. EBITDA +35%

1. Overcapacity

2. Pricing constrained

3. Domestic market grew by 7-10%

4. Imports absorbed growth in domestic market

1. Increase market penetration

2. Ongoing negotiations to restructure long term debt

3. Deliver innovative products and solutions

4. Optimisation of costs

Our focus areas

Actions taken

Financial impactIndustry

Strategic initiatives

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4.3 DRC

5. SUMMARY

PPC is well positioned with a good assets base across multiple countries

Market challenges in South Africa call for further reduction of costs through network optimization and fixed cost reduction

Zimbabwe will continue to focus on market share, maintain EBITDA margin well above 30% and be financially self-sufficient

DRC and Rwanda focus on increasing EBITDA through volume growth and cost reduction

PPC is ready to support a turnaround in Ethiopia with the HabeshaBoard and its lenders

Group treasury initiated the process to improve the debt profile across the portfolio

Our strategic review shall provide a set of measurable initiatives to create economic value, drive social transformation and improve environment performance

5.1 SUMMARY AND OUTLOOK

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6. APPENDIX

CASH BY COUNTRY SEPTEMBER 2018 CASH BY COUNTRY SEPTEMBER 2019

32

CONTRIBUTION TO CASH BALANCE BY CURRENCY

15%

0%

27%

9%14%

35%

Botswana pula

Mozambican metical

ZWL (Zimbabwe)

Rwandan franc

South African rand

United States dollar

21%

0%

21%

12%

9%

37%

Botswana pula

Mozambican metical

ZWL (Zimbabwe)

Rwandan franc

South African rand

United States dollar

69%

31% International

South Africa

GROSS DEBT PER REGION AND CURRENCY

GROSS DEBT SEPTEMBER 19 GROSS DEBT SEPTEMBER 19

GROSS DEBT MARCH 19 GROSS DEBT MARCH 19

69%

31% International

South Africa

61%

8%

31%USD

RWF

ZAR

60%

31%

9%USD

RWF

ZAR

33

CEMENT SA PRODUCTION COST DRIVERS SEPTEMBER 2018

CEMENT SA PRODUCTION COST DRIVERS SEPTEMBER 2019

34

KEY COST DRIVERS l DISTRIBUTION IS THE LARGEST COST DRIVER

25%

19%

10%

11%

8%

9%

6%

8%

4% Distribution

Other

Salaries

Electricity

Depreciation

Material consumables

Maintenance

Coal

Packaging

23%

16%

13%

12%

8%

10%

7%

7%4% Distribution

Other

Salaries

Electricity

Depreciation

Material consumables

Maintenance

Coal

Packaging

D i s t r i b u t i o n c o s t s a c c o u n t e d f o r 2 3 % o f t o t a l p r o d u c t i o n c o s t s f o r 1 2 m o n t h s e n d e d S e p t e m b e r 2 0 1 9

Rwanda

Zimbabwe

DRC

Ethiopia

Political stability post elections in the DRC in December 2018

GDP growth is forecast to grow by a 4 year average of 4.8% supported by mining demand

Focus on growing demand and capacity utilisation

In Ethiopia, the political landscape is expected to improve, with strong projected growth in GDP of 7 - 8%

Construction and retail & wholesale trade are growing at >10%

Focus on market stabilisation

GDP growth forecast to improve average 2.5% over 4 years

PPC Zimbabwe is well positioned to benefit from improved growth prospects

Focus on optimising US$ EBITDA and preserving cash

Rwandan GDP revised upward, average 7.4% over the next 4 years, supported by the agriculture sector

Focus on increasing demand and plant optimisation

Debottleneck of plant

INTERNATIONAL CEMENT LONGER TERM OUTLOOK

35

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INVESTOR CONTACTS

Anashrin PillayInvestor Relations

anashrin.pillay@ppc.co.za

+27 11 386 9000

www.ppc.co.za

This document including, without limitation, those statements concerning the demand outlook, PPC’s expansion projects and its capital resources and expenditure, contains certain forward-looking statements and 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 be 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, other government action and business and operational risk management.

Whilst PPC takes reasonable care to ensure the accuracy of the information presented, PPC accepts no responsibility for any damages, be they consequential, indirect, special or incidental, 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.

DISCLAIMER

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