In this Issue:

Industry News	Sales and Marketing
Economic News	Construction Projects
Historic Data	Definitions
PPC News

Indicators

Industry News

The Cement and Concrete Institute (C&CI) announced that the total domestic cementitious sales for South Africa increased by 22% in January 2012. This is the first time that there has been a growth in January since 2007 when domestic sales also grew by 22%.

Owing to the fact that there were the same number of selling days in January 2011 (21 days), the industry also saw a 22% growth on a sales per day basis.

The growth in January 2012 sales should be seen in the context of an exceptionally low January 2011 (the lowest sales per day for a January in eight years) and secondly PPC delayed their price increase till February 2012 which is different to previous years where the price increase was implemented in January. Historical trends indicate that the month prior to a price increase expierences better sales.

Click on the graphs below to enlarge:

Economic News

Consumer Price Index (CPI) The annual Consumer Price Index (CPI) for July 2011 increased by 0.3 of a percentage point from 5.0% in June 2011 to 5.3% in July 2011. The major contributor to this increase was from the housing & utilities category and driven mainly by hikes in electricity and water tariffs. The annual Producer Price Index (PPI) for July 2011 increased by 1.5 percentage points from 7.4% in June 2011 to 8.9% in July 2011. The major contributor to this was the increase in the prices of water and gas.
Purchasing Managers Index (Kagiso) According to the Bureau of Economic Research (BER), the seasonally adjusted Kagiso PMI increased by 2.5 points to 46.7 index points during August, but remained below the key 50 point mark for the second month in a row. From a GDP growth perspective, the most concerning part of the latest PMI numbers is the sharp deterioration in near-term demand, as well as the downbeat expectations for future business conditions.

Historic Data

	This document includes the following historic data: Domestic Sales Consumer Price Index (CPI) Producer Price Index (PPI) Gross Domestic Product (GDP) Purchasing Managers Index (Kagiso) - Seasonally Adjusted FNB/BER Building Confidence Index FNB/BER Civil Confidence Index

PPC News

PPC FACILITATES TRAINING INCUBATORS

Pretoria Portland Cement (PPC) has invested R5.2 million in the development of two construction training incubators in Tshwane, Atteridgeville and Mamelodi. The five-year project is aimed at improving the capacity of small scale entrepreneurs, through a customised and dedicated training and capacity building programme, to improve competitiveness in the construction industry.

In the planning stages of the project, PPC developed the business plan and conducted the project feasibility. A PPC project manager has also been assigned to provide expert skills and experience throughout the project. Qualified trainees from the programme will be placed at PPC and its associated companies to gain hands-on experience. The project includes various stakeholders including the City of Tshwane, Development Bank of South Africa, and the Construction and Education Training Authority (CETA), amongst others.

"At PPC, training and development is a key focus area to ensure that we are geared for growth in a competitive sector. Through the training incubators, youth will have access to resources that allows them to fulfil their career ambitions and reach their highest potential," commented Nolwandle Mantashe PPC Executive: Transformation and Government Relations.

The training programmes' curriculum will consist of three phases, including a tender phase, pre-construction and construction. Each phase deals with in-depth sections dealing with statutory regulations labour and staff compliance to site administration, and will be accredited by CETA.

The training incubators structures, previously under-utilised council facilities, are anticipated to be 800 square meters that each house 30 offices for contractors, have a conference room, classrooms, a reception area and staff offices.

The official ground breaking and Brick Laying Ceremony of the Atteridgeville construction site was attended by Councillor Kgosientso Ramokgopa, Executive Mayor of Tshwane. "Business incubation has undeniably become one of the most viable mechanisms to develop previously disadvantaged small to medium enterprises in South Africa, and it is important for government to include private sector partnerships, as this will lead to rewards for success," said Councillor Ramokgopa.

DOORWAY TO DIGITAL WORLD FOR DIEPSLOOT RESIDENTS

Residents in Wards 95 and 103 in Diepsloot now have access to information technology in the form of a Digital Doorway, thanks to a joint venture between the City of Joburg, Pretoria Portland Cement (PPC) Community Trust and Diepsloot Engagement Forum.

The PPC Community Trust funded the robust R95 000 device, which has been installed at the Diepsloot Community Youth Centre, a three-sided unit that offers users curriculum-based learning materials, a snapshot of Wikipedia, city strategy documents, educational games, typing tutor, interactive science simulations and health related information, amongst a host of other applications.

PPC External Trusts manager, Justin Meth, says PPC Community Trust agreed to fund the project because of its alignment to PPC's vision to help build better communities through empowerment and skills development. "PPC's Laezonia aggregates plant is located close to Diepsloot and much of the labour force is drawn from the area," he says.

The Digital Doorway in Diepsloot forms part of a larger Council for Scientific and Industrial Research (CSIR) initiative to place Digital Doorways in hundreds of communities throughout Africa. Meth says the machine itself was made locally by CSIR with only the keyboard being imported from France. "The machines are designed to allow three people to work on them at any given time and the computer is encased in an exceptionally rugged shell, which requires minimal maintenance," he says.

The Digital Doorway is run by an office manager, who ensures it is maintained. "Members of all ages from the community can use the machine, whether to simply satisfy their curiosity or learn new skills," says Meth.

GABARESEPE CRECHE GETS NEW LEASE ON LIFE

The Gabaresepe Creche in Old Naledi, Botswana, is a happy and inspiring haven for growing toddlers, thanks to extensive renovations conducted by Pretoria Portland Cement (PPC) as part of the company's drive to support the communities within which it operates.

PPC Human Resources Administrator Nchadi Disang says the creche, which is situated in Old Naledi, is in close proximity to the PPC factory and was identified as a deserving beneficiary for PPC's support in late 2009.

"The creche initially comprised of two large classrooms for 68 pupils and three teachers. After conducting intensive negotiations with the Old Naledi community and local Chief, the project got underway in May 2010," says Disang.

The project was tackled in two phases, with the first phase consisting largely of internal alterations and general maintenance. The classrooms were partitioned to create three separate rooms for children of different ages and the walls were painted in cheerful colours.

In addition, worn carpets were replaced with ceramic floor tiles for ease of maintenance, furniture was refurbished and toilets were modified to accommodate the children.

The second phase, which commenced in June of the same year, required structural alterations. "An architect was engaged to draw up the plans for approval by the City Council. As a result, work on the second phase was delayed," says Disang.

Once underway, the second phase saw the kitchen being extended and upgraded. In addition, a dining room, storeroom and reception area were created using unused veranda space. PPC also invested in an industrial four-burner gas stove to facilitate the preparation for meals.

Disang says the changes have made an enormous impact on the school. "The classrooms are now partitioned and pupils are grouped according to their ages, providing the education needs they require. The classrooms are bright and cheerful with child-friendly furniture, the dining room has made meal times exciting and the bathrooms are always hygienic and child-friendly.

"The intake at the creche has increased with other NGO's sending children. Unfortunately, the creche cannot accept them all as it can only accommodate 68 pupils at a time. Future projects that PPC is investigating, is the expansion of the facilities, as well as the possible introduction of a food garden," says Disang.

Old Naledi Village Development Committee treasurer Peter Marumo says the community is delighted with changes to the creche. "PPC has helped create a better space and improved the day-care centre for the teachers and children. Changes such as the partitioning of the classrooms and the construction of the dining room for meal times have made a particularly big difference in their lives," he says.

CHANGING LIVES THROUGH EDUCATION

According to Nelson Mandela, "Education is the most powerful weapon which you can use to change the world." Pretoria Portland Cement (PPC) is implementing these wise words by equipping previously disadvantaged students with the knowledge to change their world, by improving their school results.

For the past five years, PPC has been sponsoring students to attend Star Schools in the Western Cape. Star Schools offer tuition to grades 10-12 of the Further Education and Training (FET) phase, focussing on mathematics, science and English. The lessons take place on Saturday mornings at the Cape Peninsula University of Technology and are conducted by teachers from top schools in the Western Cape. According to Star Schools Regional Manager: Western Cape, Lene Chiles, for many of the learners, this is their first experience at a tertiary institution.

Initially, Star Schools selected the schools, however PPC requested an additional school closer to its Western Cape office in order to engage and interact with the students. To be selected as one of the PPC bursars, the students go through a rigorous process, not only do they need the academic ability, but they need to exude passion and commitment to succeed.

One of the many successful students that PPC sponsored is Lukhanyo Velelo, who matriculated from Sinenjongo Secondary School with four distinctions in 2011 and received 79% for his remaining subjects. Coming from a humble background, Velelo realised that education was his main priority for the year in order to end the cycle of poverty within his immediate family. He overcame incredible odds to achieve these outstanding results. Velelo is the first member of his family to attend university, where he was accepted to study BSc Actuarial Science at the University of Witwatersrand.

According to Velelo, "PPC played a vital role in brightening my future by giving me the opportunity to attend Star Schools, as it helped me prepare for my exams. The opportunity allowed me to gain knowledge and experience for which I am very thankful, as this will positively impact on my studies at Wits."

"Through PPC's generous sponsorship, many students' lives are dramatically changed. A challenge that we experienced is that many students struggled to attend the classes due to financial circumstances and PPC allowed for transport expenses, guaranteeing that the learners attend every class," says Chiles.

"At PPC, learning and development is a key focus area primarily aimed at ensuring that the communities in which we operate have the opportunity, the resources and the means to fulfil their career ambitions and achieve their highest potential. In partnership with Star Schools, PPC is committed to offering these students the stepping stone they deserve. PPC is proud of all the hard work the students have put into getting this far," says Andrea Meyer, PR Officer at PPC.

Sales and Marketing

PPC YOUNG CONCRETE SCULPTOR AWARDS GETS BOOST FROM ARTS BODY

Pretoria Portland Cement (PPC) recently became a member of Business and Arts South Africa (BASA), a move that will help the cement manufacturer's long-standing Young Concrete Sculptor Awards (YCSA) competition gain further leverage in the arts sector.

The PPC YCSA competition, which has been running for 21 years, gives emerging artists the opportunity to showcase their skill and creativity through the unique and challenging medium of concrete.

BASA is a non-profit organisation whose primary aim is to promote mutually beneficial and sustainable business partnerships that benefit society as a whole. Supported by Department of Arts and Culture and private sector, it has over 160 corporate members.

PPC Customer Executive Richard Tomes says BASA membership will translate into several benefits for YCSA, including the opportunity to network with other members, gain access to other events scheduled by BASA and, importantly, benefit from the body’s extensive marketing and publicity initiatives. "BASA has built up a highly credible reputation in the arts industry and amongst corporate organisations that support various arts initiatives," he says.

In addition to marketing and media support through its various media partnerships, BASA members are recognised at an annual Business Day BASA Awards ceremony. It also offers supporting grants to businesses for the arts projects they sponsor.

With BASA's support, the cement manufacturing company hopes its Young Concrete Sculptor Awards competition will become an even greater reflection of the outstanding young talent South Africa has to offer. "PPC is committed to reinforcing the role it plays in encouraging and developing emerging artists and providing them with opportunities to showcase their work," says Tomes.

BASA CEO Michelle Constant ssays the PPC Young Concrete Sculptor Awards initiative is an example of best practice in arts funding. "The value which the initiative offers both the business and the arts is tangible and exciting. As BASA, we applaud them for this sustainable project," she says.

Construction Projects

Definitions

Purpose

The purpose of this monthly newsletter is to provide key market information to all parties having an interest in the cement industry.

This information is based on statistics submitted, confidentially, by the individual industry players to an independent audit firm. The consolidated data is then forwarded to the Cement & Concrete Institute (C&CI).

Enquiries about the content of this document can be directed to Kevin Odendaal, Executive Investor Relations and Corporate Communications, on (011) 386-9024.

Terminology

Disclaimer

All content prepared in this document has been sourced from what are believed to be accurate and reliable information providers. No undertaking or representation is made by Pretoria Portland Cement Company Limited ("PPC") in relation to the accuracy and/or sufficiency of the information contained in this document. PPC will not accept any responsibility for any damages, however arising, regarding the use and/or interpretation of the information contained in this document.