PPC : interim results

MEDIA RELEASE PPC TURNAROUND CONTINUES TO DELIVER SOLID RESULTS

"PPC's 'Awaken the Giant' strategic turnaround plan continues to gain momentum and, at the same time, is redefining PPC's future. Competitiveness is strengthening, profitability and cash flow are increasing consistently, and disciplined capital allocation is translating into superior returns."

Matias Cardarelli, PPC CEO

Highlights:

• Continuing to deliver ahead of plan
• EBITDA increased by 23,5% to R983 million
• EBITDA margin increased by 2,6 percentage points to 18,3%
• Pro forma HEPS and EPS both increased by 32% to 29 cents
• Net cash inflow before financing activities increased by 32% to R661 million
• ROIC increased by 6,3pp to 13,4%

Johannesburg, 24 November 2025: The leading Southern African supplier of cement and related products, PPC Limited (PPC), has delivered a best-in-sector performance for the six months to 30 September 2025.

EBITDA increased by 23,5% to R983 million (H1 FY25: R796 million). EBITDA margins expanded by 2,6 percentage points to 18,3% (H1 FY25: 15,7%). In South Africa, the cement business EBITDA grew by 30,5%, and EBITDA margins increased by 3,8 percentage points to 17,5%. In Zimbabwe, EBITDA increased 13,6% to US$25 million, with a record dividend declared of US$20 million.

PPC CEO, Matias Cardarelli commented, "We continue to deliver ahead of our FY25-FY30 strategic plan. This progress is evident in profitability, margin and cash flow generation. It is also clear in the significant increase in Return on Invested Capital, which reached 13,4% from 7,1% in

the comparable period. The progress is clear, but our ambition goes further - we are committed

to unlocking PPC's full potential."

Earnings per share (EPS) and headline earnings per share (HEPS) both increased to 25 cents (H1 FY25: EPS 22 cents and HEPS 22 cents). Excluding the impact of unrealised foreign exchange losses of R54 million, incurred on hedges to de-risk rand weakness for the construction of the new plant in the Western Cape, EPS and HEPS would have increased 32% to 29 cents, which is more in line with the improvements in operational performance.

Building on last year's foundations, real progress on the plant performance improvement plans, additional logistics optimisation, as well as the commercial initiatives to enhance contribution margin, will continue to drive value creation and results growth. "Progress is well ahead of plan, and there is more to come," said Cardarelli.

Group financial review

Group revenue increased by 6,2% to R5 382 million (H1 FY25: R5 067 million) due to positive revenue growth across the cement businesses, especially in the second quarter.

Group cost of sales increased by 4,3% to R4 279 million (H1 FY25: R4 103 million), being a lower rate of increase than revenue which, when combined with a 5,6% decrease in administration and other operating expenses and a decrease in the provision for expected credit losses, resulted in a 37% increase in trading profit to R688 million (H1 FY25: R502 million).

The group's net cash inflow before financing activities increased by 30% to R661 million (H1 FY25: R500 million) before the R317 million impact on working capital in relation to the advance payment on the RK3 project.

Capital expenditure during the last six-month period totalled R225 million (H1 FY25: R186 million). The main contributor to the increase of R39 million was maintenance expenditure in Zimbabwe of R110 million (H1 FY25: R67 million) due to the planned extended shutdown in the Colleen Bawn plant as part of the three-year plant performance improvement plan.

Group net cash improved to R310 million (H1 FY25: R203 million net debt).

Outlook

FY25 marked a critical inflection point for PPC, which was the starting point of the strategic turnaround. The actions being implemented are creating the capacity to unlock internal value and increase competitiveness. Capturing market opportunities and leveraging the scale of PPC's footprint will drive growth going forward.

In South Africa, dynamics in Q2 FY26 reflects signs of recovery as the private sector is becoming more active and PPC is well positioned for the infrastructure projects at provincial level.

In Zimbabwe, the strong demand and PPC's capacity advantage will drive additional revenue growth, reinforcing market leadership. A technical operational support agreement was recently signed with Sinoma Overseas to improve production efficiency and increase clinker output, amongst other initiatives.

Cardarelli concluded, "The focus in the current year will remain on the implementation of the plant performance improvement plan, the execution of the new state-of-the-art plant project in the Western Cape, the ongoing pursuit of commercial opportunities to maximise contribution margin, additional distribution efficiencies and ensuring the 'Awaken the Giant' strategy is rolled out in Zimbabwe. Delivering on the turnaround plan, continuing to increase profitability and cash flow and maintaining disciplined capital allocation remain the priorities to ensure the group is able to deliver superior returns to all stakeholders."

ends Note to editors About PPC Ltd

PPC is an iconic material and solutions provider of quality and consistent cement, aggregates, readymix and fly ash, and provides technical support to its customers. PPC's story stretches back over 130 years to where it was first incorporated on the outskirts of Pretoria in 1892. As the first cement plant in South Africa, and now operating outside of these boarders, the industry leader has established itself as a resilient organisation by adapting to ever-changing economic, operating and political environments. PPC is proud to be a leading provider of quality building materials and solutions to empower people to experience a better quality of life. Follow PPC on LinkedIn PPC Africa, on X @PPC_Africa, like us on https://www.facebook.com/PPC.Cement and visit us at https://www.ppc.africa.

Issued by Aprio on behalf of PPC

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