Overview of PPC

1 Overview of PPCFor well over a century, PPC has tracked the growth and development of South Africa and Zimbabwe, producing cement for many iconic landmarks, including the Union Buildings, Gariep Dam and Van Staden s River Bridge, Kariba Dam, the Gautrain, new Cape Town Stadium, Medupi power station and much of southern Africa s the acquisition of Safika Cement and Pronto Readymix (including Ulula Ash), PPC now supplies from nine cement manufacturing factories, four milling plants, five blending facilities and nine readymix batching plants. These are in South Africa, Botswana, Zimbabwe and Rwanda, producing around eight million tonnes of cement products each year and half a million tonnes of fly ash. PPC also produces aggregates, metallurgical-grade lime, burnt dolomite and limestone. Our Mooiplaas aggregates quarry in Gauteng has the largest aggregate production capacity in South focus extends beyond our group to the broader industry.

2 As a leader in this industry, PPC has actively invested in technology to reduce air emissions, minimise waste production, recycle and recover raw materials, enhance energy efficiency and conserve natural resources, while producing a reliable and affordable supply of building materials to support the economies of countries where we is a truly African success story a focused business that reflects the strengths of its people, products and services. As we expand into the rest of Africa, we will deploy our sustainable business model one built to last for all following frameworks have been applied in preparing this report:FrameworkSouth African Code of Corporate Practice and Conduct as set out in the King III reportCompanies Act 71 of 2008 JSE Limited (JSE) listings requirementsFramework issued by the International Integrated Reporting Council (IIRC)Global Reporting Initiative (GRI)International Financial Reporting Standards (IFRS)PPC IR 2014 FOR WEB ONLY_PROOF 4 9 DECEMBER 2014 PPC IR 2014 FOR WEB ONLY_PROOF 4 9 DECEMBER 20142 PPC Sustainability 2014 2014 AT A GLANCEPERFORMANCE HIGHLIGHTSFINANCIALR evenue R9 billion(2013: R8 billion)4projects under way in restof Africa expansion 40% of revenue by 2017 Headline earnings per share 179 cents(2013.)

3 179 cents)Over R4 billionin project finance secured for expansion projectsSOCIAL91% of total procurement(R4,9 billion) spent with BBBEE suppliersR10 million on corporatesocial investment initiativesPEOPLER100 millionvalue of shares vested in the hands of employeesImproved group safety performance1 and 2 million lost-timeinjury-free hours for Bulawayo and Colleen Bawn, ZimbabweENVIRONMENT3 successfulupgrades reduced dust emissions to below 2020 limits2 amended waste licencesreceived Riebeeck and De Hoek advancing our alternative energy initiativesPPC IR 2014 FOR WEB ONLY_PROOF 4 9 DECEMBER 2014 PPC IR 2014 FOR WEB ONLY_PROOF 4 9 DECEMBER 2014 PEOPLE REVIEWAll sites completed their mining charter scorecards and these were submitted to the regional DMR offices before the required date at the end of March 8%, or 220 team members, were trained as safety representatives, as planned, by the end of December 2014.

4 Creating a sustainable culture of safety and health in PPCS afety and healthcare are core values in PPC and we continuously strive for excellent performance in all areas of our operations. Our abiding aim is to have everyone leave work at the end of the day in the same state as they arrived in the years ago, after reviewing our safety performance and researching extensively, we rolled out an initiative to focus on a zero-harm culture in the group, known as PPC Alive! The name embodies growth, empowerment, vitality, sustainability, wellness and many other concepts that support our beyond-zero culture means safety is always foremost in the minds of our team members. Safety is not a number we count to reach a target, it is a way of life. At PPC we use the term Nomakanjani which literally translates to come what may and used in context being safe is the way we do things around here or Nomakanjani!

5 Safety is about the tasks we do every day, in an ever-changing work environment. Our process focuses on our people becoming collectively mindful, and our mindset is that the workplace and equipment are unsafe only the actions of people can make them PPC Alive! journey is about entrenching a safety culture, and is based on our safety values: care, respect, positive intent, reliability and empathy. PPC Alive! focuses mainly on the people aspects of safety, which for many years have been largely misunderstood or will maintain our safety systems and processes but we recognise that achieving excellence in safety and health performance means doing things a little differently. PPC Alive! now focuses on integrating the concept of engagement, empowerment and enactment into our safety strategy as a major focus to improve our safety culture and, therefore, will also focus on new projects in areas where PPC has not traditionally operated.

6 Issues such as availability of competent health and safety resources, language, lack of infrastructure, cultural differences, in-country legislation and fit-for-purpose health and safety standards will need to be carefully evaluated, and project-specific health and safety plans developed to accommodate these and safety HighlightsThe approach to safety is evolving into becoming a learning organisation at the heart of this, PPC is developing a zero-harm culture as opposed to focusing only on safety statisticsPPC Alive! has been rolled out at five sites, with ongoing site-specific initiativesTraining interventions, including accident investigation, mindfulness and lessons learned are underway at all PPC sites13 PPC operations have not had a lost-time injury this yearLowlights19 lost-time injuries in 2014 Occupational healthAll factories continue to run their HIV/AIDS and tuberculosis (TB) programmes, and noise-alleviation programmes.

7 Reporting on these items forms part of the mining charter is not common at PPC sites but treated as runs HIV/AIDS management programmes aligned to the national guideline at each site. HIV/AIDS awareness and treatment programmes are well established and prevalence levels are low at our operations in South Africa but high in Botswana (where government provides treatment) and Zimbabwe (PPC provides counselling and antiretroviral drugs).Noise-induced hearing loss (NIHL) is an issue in the mining and manufacturing industries, but not a significant risk in PPC. We have programmes in place to reduce noise levels with engineering controls where possible, and ensure all team members have quality hearing protection. Hearing tests are part of the annual medical examinations at all did not have any new occupational diseases during the 2014 year, therefore no compensation cases were safetyThe PPC group lost-time injury frequency rate (LTIFR) decreased from 0,28 in 2013 to 0,25 at 30 September 2014: 5% of the decrease is attributable to CIMERWA factory and project.

8 PPC reported 19 lost-time injuries (LTIs) in 2014, compared to 18 in 2013. Our operations in the CIMERWA factory, CIMERWA project (Rwanda) and DRC project are now included in our safety reporting remains active within the structures of the Chamber of Mines to obtain information and add value towards compliance with various elements of the mining charter and the DMR 2014 milestones. The key objective is that every mine worker returns home unharmed every PPC Sustainability 2014 SUSTAINABILITYPPC IR 2014 FOR WEB ONLY_PROOF 4 9 DECEMBER 2014 PPC IR 2014 FOR WEB ONLY_PROOF 4 9 DECEMBER 2014 PPC Sustainability 20144 PPC group key safety indicatorsTarget2015 Target2014 Actual2014 Actual2013 Target2013 Number of fatalities00010 Fatality frequency rate per 200 000 hours worked0000,020 Number of LTIs<9<101918<11 LTIFR per 200 000 hours worked (12-month window)<0,121<0,150,250,28<0,18 Days lost to LTIsN/AN/A95631 0602N/A1 Target derived from individual site targets based on hours worked and specific performance High number of days lost due to severity of CIMERWA factory and project contribute 5% and 7% to group LTIFR and lost days sites had no LTIs in the review period.

9 Saldanha, George, DRC project, Botswana depot, Mozambique, quarries of Botswana, Bulawayo, Kgale and Colleen Bawn (Zimbabwe), group laboratory services, SA projects, Riebeeck, sales and from authorities201420132012 Number of visits by authorities474231 Mine Health and Safety Act section 54 (notice to stop operation)234 Mine Health and Safety Act section 55 (notice to take action)355 Occupational Health and Safety Act section 30010 Other (Zimbabwe, Botswana)0** Data not LTIs LTIFRNov2013 Dec2013 Jan2014 Feb2014 Mar2014 Apr2014 May2014 Jun2014 Jul2014 Aug2014 Sep20142 21132 2 202 20012340,00,10,20,30,4 PPC group LTIFRW orkforceHighlightsExtensive Kambuku revitalisation initiativeTo further close the wage gap, senior managers took a reduced wage increase in 2014. Together with sacrificing the prior year s increase, this has made a significant impact on the wage gap and minimum wage reducing the gap from 1:48 in 2013 to 1:40 to CEO22 employees have participated in the housing initiative to own a decent home.

10 Over the medium term, some 300 employees will receive financial and technical assistance towards improving living conditionsFurther employee share allocations under BBBEE MasakhaneLeadership development programme launched for succession candidatesDevelopment of human resources (HR) strategy aligned to business strategyRepresentation of women up from 21,7% in 2013 to 22,3% in 2014R100 million in shares from the BBBEE1 transaction in 2008 now vested in the hands of employeesLowlightsResignation of senior executives36 employees retrenched at our Riebeeck operation and 30 employees at our Lime operationUnderpinning PPC s long history of success is a hard-working, diligent and dedicated team of employees across our operations. Their determination continues to drive our progress towards executing our business IR 2014 FOR WEB ONLY_PROOF 4 9 DECEMBER 2014 PEOPLE REVIEW continuedHR strategic focus areasAligned to our expanding in Africa and keep the home fires burning vision, the HR strategy was reviewed to enable strategy revitalisationIn 2013, we assessed the effectiveness of our Kambuku employee value creation process.