Slides
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RESULTS FOR THE year ENDED 31 march 2025
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RESULTS FOR the year ENDED 31 March 2025 2 AGENDA 01020304 introductionMatias Cardarelli | CEO Group financial reviewBrenda Berlin | CFO Business reviewMatias Cardarelli | CEO Q & A05Looking aheadMatias Cardarelli | CEO
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INTRODUCTIONMATIAS CARDARELLI | CEO 3
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RESULTS FOR the year ENDED 31 March 2025 S USTAINABLE GROWTH has already begun Delivering ahead of plan RESULTS FOR the year ENDED 31 March 2025 4 MargincashProfitability
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RESULTS FOR the year ENDED 31 March 2025 5 under pinned by that requires BUSINESS KNOWLEDGEROUTES TO MARKETCost FOCUS Technologyculturepeople isCompetitivenessstrategy Awaken the giant strategy Building a more competitive organisation
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RESULTS FOR the year ENDED 31 March 2025 1 2 3 4 528%4ppR789m28% 6 RESULTS FOR the year ENDED 31 March 2025 The giant awakensDelivery evident in results for 12 months to 31 March 2025 Strong improvement across key metrics EBITDAEBITDA marginFCF Ordinary dividendNew Western Cape integrated plant 6
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RESULTS FOR the year ENDED 31 March 2025 SA & Botswana group to maintain pace of growthZimbabwe expected to recover to FY24 EBITDA level01 Additional cash cost savings02 Awaken the Giant turnaround initiatives ramp-up03 Further development of strategic projects/options04 H2 guidance versus H2 fy25 delivery 7 SA & Botswana group H2FY25 EBITDA ▲ 79%Zimbabwe H2FY25 EBITDA ▲ 82% Awaken the Giant turnaround initiative progress: Signing and launch of c. R3.0 billion turnkey EPC contract with Sinoma for 1.5 mtpa capacity integrated plant in Riebeeck. Operations and supply chainCommercialCost mindsetLess is more
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Group financial reviewBRENDA BERLIN | CFO 8
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RESULTS FOR the year ENDED 31 March 2025 9 For the Year ended 31 March 2025Consolidated group | key features Revenue EBITDA margin Free cash flow1HEPS capexoRdinary Dividend▼ 1.9% to R9 871 million ▲ 3.8% pts to 16.1% ▲ R1 049 million(FY24 R260 million)▲ 40 cents (FY24: 19 cents)R373 million(FY24: R400 million) All numbers for continuing operations1.Free cash flow is net cash inflow before financing activities from continuing operations ▲ 17.6 cents (FY24: 13.7cents)
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RESULTS FOR the year ENDED 31 March 2025 ebitda •Impairments of R181 million (FY24: R267 million)•R155 million relates to the impact of the new integrated plant on the De Hoek mine and the Riebeeck factory•Prior period impairment related mainly to the mothballing of the Jupiter milling plant•Reduction in net finance costs to R43 million (FY24: R89 million)•Lower borrowings and improved pricing terms•Higher average cash balances•Ta x ra t e •The cash tax rate at 33% is at guidance10 Positive impact of cost savings evident as turnaround takes effectconsolidated Group | income statementContinuing operations (Rm)FY25FY2431-Mar31-MarRevenue 9 87110 058EBITDA 1 5931 242EBITDA margin16.1%12.3%Trading profit982619Fair value and foreign exchange gains(21) (30) Impairments(181)(267) Finance costs(106)(131)Investment income6342Land grant - Zimbabwe37-Ta xa t i o n (308)(145)Profit from continuing operations46688Profit from discontinued operations-422 HEPS (cents) from continuing operations4019Ordinary dividend (cents)17.613.7 FY25FY24Effective tax rate40%62%Cash tax rate 1 33%38% Below the ebitda line•Previously expropriated land returned to PPC Zimbabwe totaling R37 million 1. Excludes one-offs and withholding taxes
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RESULTS FOR the year ENDED 31 March 2025 CONTRIBUTION TO GROUP REVENUE Fy25 CONTRIBUTION TO GROUP EBITDA FY25 46%54% 47% 53% SA & Bots groupZimbabwe 67% 33% 68% 32% SA & Bots groupZimbabwe 11 Mix stabilisedconsolidated Group | contribution FY25:R9 871MFY24: R10 058m FY25:R1 559MFY24: R1 242m
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RESULTS FOR the year ENDED 31 March 2025 12 Restructured group delivers Sound performanceSa & botswana group | contributionContinuing operations (Rm)FY25FY24% change31-Mar31-MarRevenue6 7496 7120.6%SA & Botswana cement5 8395 7092.2%Materials9101 003-9.3%EBITDA 74456731.2%SA & Botswana cement83768422.4%Materials2443-44.2%PPC Ltd and other-117-16026.9%EBITDA marginSA & Botswana cement2 13.6%11.3%2.3%ptsSA & Botswana group11.0%8.5%2.5%pts Net debt: EBITDA1 Net cashNet cash1. Per financing agreements and group in a net cash position currently. 2. Based on gross revenue before intersegment elimination SA & Botswana cement•Price increases offset volume decline•Strong margin improvements following turnaround initiatives implemented during the year•Cost management a key feature Materials•EBITDA in prior year positively impacted by a R55 million non-cash once-off item – FY24 comparable number is a loss of R12 million Ppc ltd and other•This relates only to true PPC Ltd costs as all Group Services employees transferred to PPC Cement SA gearing•Net cash positive at 31 March 2025•31 March 2024 covenant is re-presented
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RESULTS FOR the year ENDED 31 March 2025 -5015 035 055 075 095 011 5013 50 1 2 3 4 6 7 8 9 10 11 13 core business – strong cash generationSa & botswana GROUP | CASH FLOW Cash793 736Gross debt(779) (502)Net cash 14 234 Reduced by R2772 million to R’millions Decreased by R57 million to 1.Finance costs, including leases, paid of R113 million net of investment income received of R52 million. 2. Includes accrued finance charges of R2 million 765 410(167)(225) (61)(275)234(734) (57) 557 36 (98)(296) 779 Operating cashflow before working capital changesWorking capital changesCapexNet cash generated (core business)Debt repaidNet finance costs1 Distributions to shareholdersTax paid Net movementDividend from ZimbabweOther (core business) (4) 118 (81)
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RESULTS FOR the year ENDED 31 March 2025 Key features•Revenue stabilised in the second half of the year as volumes were recovered from importers•Improvement across all cost line items, fixed and variable as well as administrative costs•94% of cash is held in hard currencies•Multi-currency trading environment confirmed until 2030•Increased capex spend due to two kiln stoppages to replace mill liners compared to one stop in the prior year•T otal dividends increased to a record US$13 million and repatriation remains consistent•EBITDA includes non-cash US$2.0 million – return by government of previously expropriated land FY25 31-MarFY2431-Mar% changeContinuing operations US$mUS$mRevenue171.2178.5(4.0)%EBITDA46.635.929.8%EBITDA margin27%20%7.0%ptsCapex 8.05.626.0%Cash balance6.42.0-Gross dividend declared and paid13.011.018.2% 14 Margin improvements despite topline reductionZimbabwe
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RESULTS FOR the year ENDED 31 March 2025 RESULTS FOR the year ENDED 31 March 2025 15 Epc contract is effectiveRk3 contract funding steps Existing facilities maintained, which include R1 billion of headroom Covenant expected <2.0x during peak funding New facility agreements signed for additionalR1 billion from relationship banks Net debt:EBITDA covenant increased to 2.5x over peak funding period, being FY27 Hedging strategy in place for the US$134 million EPC cost05 01 02 03 04
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RESULTS FOR the year ENDED 31 March 2025 Capex spend per type (R millions) 481922 320381351 FY23AFY24AFY25AExpandSustainRK 3Other FY 26 F roic •Remains a key focus area•Positively impacted by 28% increase in EBITDA•Calculation consistent ⇢ NOPAT/(average invested capital + impairments) 16 purposeful and value accretive capital allocationConsolidated group | capital allocation and returnsR ‘millions FY25FY24Group 10.6%6.5%3684003731 630 Capex spend per capital pillar (R millions)•Capex split (R millions) •Guidance impacted by RK3 and c. R320 million of the other capex spend is in respect of South Africa FY25FY24South Africa & Botswana group225295Zimbabwe148105373400 1180 450FY26F
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RESULTS FOR the year ENDED 31 March 2025 0201 17 SOUND CAPITAL ALLOCATION PRINCIPLES APPLIEDCOMMITMENT TO DIVIDENDS •Current two pillar policy principle to be maintained:•SA & Botswana group leverage of at or below 1.3x – 1.5x SA and Botswana EBITDA, before dividends from Zimbabwe; and•an amount up to the gross dividend received from Zimbabwe•SA & Botswana 12-month forward net leverage is forecast to be below 1.3x to cater for RK3 construction •Subsequent to year-end, PPC Zimbabwe declared a dividend of US$6 million, to be paid in July 2025 1. Declared 21 June 2024 and paid 15 July 2024 2. Declared 28 August 2024 and paid 23 September 2024 SA &botswana GROUPzimbabweFlow through of gross dividend paid of R244 million (FY24: R213 million)Cash dividend of R30 million (FY24: nil)1.9 cents15.7 cents Total ordinary dividend of 17.6 cents per share Dividend paid based on two pillar principle Forward looking dividends
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01 02 03 RESULTS FOR the year ENDED 31 March 2025 looking forward 18 Focus on keeping a sound balance sheet, while retaining dividend distributions 18 Retain sound profitability and cashflow generation Capital allocation discipline to be maintainedNet debt well managed and will only exceed target levels in one year – FY27
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BUSINESS REVIEWMATIAS CARDARELLI | CEO 19
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RESULTS FOR the year ENDED 31 March 2025 KEY ACHIEVEMENTS RESULTS FOR the year ENDED 31 March 2025 20 Platform for long-term growth launched FUNDAMENTAL ORGANISATIONAL CHANGES DRIVE PERFORMANCE Executing our strategic agenda in a “no growth” context
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RESULTS FOR the year ENDED 31 March 2025 Addressing and fixing the gaps 21 KEY TO IMPLEMENT BOTH THE OPERATIONAL TURNAROUND AND RESHAPE THE VISION OF THE ORGANISATIONThe AWAKEN THE GIANT Strategy remains on track Strategic opportunities and projects Turnaround plan Commercial Cost mindset Less is more Operations and supply chain
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RESULTS FOR the year ENDED 31 March 2025 22 DELIVERING STRONG GROWTH despite THE FLAT MARKET SA & Botswana cement | key featuresRevenue ▲ 2,2% to R5 839 millionEBITDA ▲ 22.4% to R837million ▲ 2.3 pp to 13.6% cashflow1 ▲ R779 million (FY24: R118 million) 1.SA & Botswana group Sa cement Contribution margin Sa Cement volumes Cost & cash management •Plant performance improvement plan implemented with clear targets•Commercial division taking shape •Value accretive sales growth and data-based decision-making driving better sales performance in H2 •[price] •Ongoing discipline required -1.3 Early wins in turnaround Clinker IncorporationCoal ConsumptionPower ConsumptionR/ton/km (outbound) -2.3-1.4-1.2pp-14.2 -6%H1 +3% H2 YoY Working capital1G&A costs1-11.0-62.0 +4
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RESULTS FOR the year ENDED 31 March 2025 readymix ash aggregates •Year-on-year volumes ▼ 21%•Improvement of market position delivering positive EBITDA generation Cost structure improvement by turning fixed costs into variable costs •Year-on-year volumes ▼ 26%•Higher pricing partially balancing the lower volumeResults penalised by the restriction of the Mozambique border •Year-on-year volumes ▲ 17%•Volumes recovered and focus on higher value productsGrowth of higher value products 23 SOUND RESULTS REFLECTING QUICK WINS IN AN ADVERSE MARKETSA MATERIALS | key features Revenue ▼ 9.3% to R910 millionEBITDA ▲ R24 million (FY24: -12 million1)CM per ton CM per m3 CM per m3 -7.7Average cement /mpa 1. Excluding impact of R55 million +21 +15 +14
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RESULTS FOR the year ENDED 31 March 2025 24 Record year for ebitda, ebitda margin and dividendszimbabwe| key features 1. EBITDA excludes non-cash US$2.0 million – return by government of previously expropriated land Revenue ▼ 4.0% to $171.2 million EBITDA & EBITDA margin1 ▲ 24% to $44.6 million ▲ 6.1pp to 26.1%Cash balance ▲ $6.4 million (FY24: $2.0 million) Contribution margin volumes Cost & cash management •Renegotiated contracts on logistics, coal and gypsum delivering quick returns•Clinker production record with room for further improvement •Reduced the negative impact of importers through turnaround commercial actions •Turnaround actions delivered better variable, fixed and logistics costs as well as reduced G&A costs +13 -5.5 Early wins in turnaround R/ton/km(outbound)Clinker production-7.2% -9 -1,8-6%H1 +3% H2 YoY Cost of good sold-14.0 +2
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RESULTS FOR the year ENDED 31 March 2025 Decarbonisation improvements reduce costs 25 Safety and environmental metrics support financial outcomes RESULTS FOR the year ENDED 31 March 2025 CO2 Emissions3 714 (FY24: 727) -2 3. Specific kg CO2 emissions per ton of cement Improved safety indicators a priorityFrequency rate1 Severity Rate20,12 (FY24: 0,14) 3,49 (FY24: 10,54) -14 -661. Lost time injury frequency rate 2. Lost time injury severity rate
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OUTLOOKMATIAS CARDARELLI | CEO 26
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RESULTS FOR the year ENDED 31 March 2025 RESULTS FOR the year ENDED 31 March 2025 27 Looking forward 01Awaken the Giant gaining momentum and delivering incremental margin improvements over the year ahead 02Expand margin accretive sales under current demand conditions while being best positioned to profit from market recovery 03Maintain capital allocation discipline and balance sheet management in a context of higher CAPEX with the RK3 investment begin 04Further development of strategic projects/options Short term Long term 27
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RESULTS FOR the year ENDED 31 March 2025 28 Performance ahead of forecast FY24FY25AFY26-27FFY28FFY29-30F Rebuild Foundations + Plan fast track Incremental improvements Awaken the Giant SustainableGrowth and ValueStep changewith rk3 +4PPto 16%> 17%> 21%Sustainable ebitda margin > 22%12%Ebitda margin Roic > wacc by 2028roic6% >9% Annual Dividend growth 11% Consolidate improvements in FY26-Fy27 ahead of next step change in FY28 Ordinary dividends12%
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RESULTS FOR the year ENDED 31 March 2025 01020304 29 29 AN EXCITING FUTURE >>> Significant opportunities remain tounlock valueClear proposition -cement focusedRight team to execute change Long-term sustainability secured RESULTS FOR the year ENDED 31 March 2025
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30 Thank you
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Q&A 31