In this Issue:

PPC Interim results for the for the half-year ended 31 March 2012	Sales and Marketing
Historic Data	Construction Projects
PPC News	Definitions

Introduction

National Cementitious Sales Figures Published By The C & CI

As a courtesy, PPC wishes to inform the PPC In The Mix Online Monthly Newsletter recipients that members of the South African Cement and Concrete Institute (C&CI), have been notified by the Competition Commission that the C&CI may in future only disseminate cementitious sales as a national, quarterly figure delayed by three months.

For example a cementitious sales figure for the quarter January to March 2012 should be published at the end of June or beginning of July 2012.

Following the above, PPC has resorted to publishing this newsletter quarterly.

PPC released its interim results for the period October 2011 to March 2012 on 17 May 2012.

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 - 120 years and going strong!

Pretoria Portland Cement (PPC) this year celebrates its 120th year, a formidable 12 decades of innovation and market leadership and remains the leading cement producer in southern Africa.

This milestone comes two years after the cement giant celebrated its 100th year listing on the Johannesburg Stock Exchange (JSE), in February 2010.

PPC Riebeeck factory at Riebeek West in the Western Cape, commissioned in 1959

Established as De Eerste Cement Fabrieken Beperkt in 1892, PPC has tracked the growth and development of South Africa, producing the cement used in many of the country's iconic landmarks and construction projects, including the Union Buildings, Gariep Dam, Van Staden's River Bridge, Gautrain, Medupi Power Station to the new Cape Town Stadium in Green Point and many of southern Africa's infrastructures.

An African business success, the company has eight cement manufacturing facilities and three milling depots in South Africa, Botswana and Zimbabwe that can produce eight million tons of cement products each year. It also produces aggregates, metallurgical-grade lime, burnt dolomite and limestone.

Along the journey, this cement manufacturer has achieved many milestones, including the successful unbundling from Barloworld in 2007, a R2.8-billion Broad-Based Black Economic Empowerment transaction in 2008, the commissioning of a R1.4-billion plant in Dwaalboom and the R700-million project at its Hercules plant.
According to PPC’s CEO, Paul Stuiver, celebrating a 120th anniversary as a company is a remarkable achievement and PPC can feel justifiably proud. “As I commented at our 100 year listing celebration, I believe that there are four key elements to our success. Firstly, the longevity of our products as well as the vision, courage and the wisdom of previous leaders. I also credit our Kambuku philosophy, a people management system that not only looks to empower PPC employees, but also the communities in which we operate. And lastly, due to our long term relationships with customers, shareholders, suppliers, government and advisors we are prosperous.”

Today, PPC’s focus extends beyond the organisation to the broader industry. As a leader in the industry, the cement company 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 it operates.

As PPC expands into Africa, a sustainable business model will be deployed - one built to last and the brand of choice in its chosen marketplaces.

Stuiver adds, “As an organisation, we believe the cornerstone of sustainability lies in the balanced integration of performance, corporate governance, social, economic and environmental factors into the planning, decision-making and implementation stages of our business. We exercise due diligence in all areas of operation and promote sustainable development in our business, among our employees, and in the communities and environment in which we operate”.

As part of the cement manufacturer’s 120 year celebration, PPC gave away its popular PPC Cement laptop bags to their Facebook fans at Facebook.com/PPC.Cement. You can also follow PPC on Twitter @PPCisCement.

To find out more about PPC’s laptop bags, visit http://thewrendesign.com/the-ppc-cement-laptop-bag-story/.

PPC BBE Status

PPC's broad-based black economic empowerment status as at September 2011 was audited and verified by rating agency Empowerlogic in November 2011. In terms of the DTI codes of good practice, PPC is a level 2 BBBEE contributor with a procurement recognition level 2 (this enables its customers to claim back 156% of their spending with PPC’s group for their own preferential procurement points).

N2 UPGRADE TO ACCOMMODATE BUSY HARBOUR TRAFFIC

PPC supplies cement for Coega to Colchester road improvement project

Pretoria Portland Cement (PPC) will supply 6 000 tons of cement to a SANRAL project for the building of a new 13,3 kilometre carriageway to the east of the existing N2, as well as for the subsequent rehabilitation of the existing road. The project is situated between the eastern boundary of the Coega Independent Development Zone and the town of Colchester in the Eastern Cape. The cement producer has already supplied 3 000 tons of cement for the westbound carriageway, which is due for completion at the end of April.

PPC supplies cement for Coega to Colchester road improvement project

PPC’s Port Elizabeth sales consultant Shaheen Salie says the Coega harbour is one of the deepest water ports along South Africa’s coastline, making it a popular destination for dry and liquid bulkers and container ships. “The N2 carries high volumes of traffic, including many heavy trucks. The upgrade to the road will facilitate traffic flow for all users, but specifically the shipping industry and developments in the CDC,” he says.

Once completed, the new westbound carriageway will comprise two selected and two cement stabilised subbase layers followed by a G1 crushed base. The surfacing will be made up of a 50mm asphalt wearing course, with further provision for an ultra-thin friction course to reduce traffic noise on the section passing through Colchester.

Concor Roads & Earthworks project manager, Joe Nell, says the existing eastbound carriageway will be rehabilitated by reconstructing new layer works and providing the road with a new wearing course. “In addition, some minor vertical re-alignments will be undertaken,” he says.

In addition to the road works, a new six span, 200 metre long bridge is being constructed adjacent to the existing Sundays River Bridge. The new bridge will accommodate the westbound carriageway, and the existing bridge will remain to accommodate the eastbound carriageway.  Salie says PPC supplied 4 000 tons of cement to Concrete 4 U, which is providing concrete for the construction of the new bridge.

He continues to say the upgrading of the road is expected to encourage private investment in the CDC district. “We are already seeing a significant interest in the area with a recent R1 billion investment by China’s FAW Factory to construct a truck manufacturing plant,” he concludes.

The rehabilitation of the existing road (future eastbound carriageway) will commence in May 2012 and is expected to be completed in November 2012.

PPC contributes to meeting South Africa's electricity requirements

Pretoria Portland Cement (PPC) has joined forces with industry construction heavyweights in building the new Medupi Power Station - the biggest dry-cooled coal-fired power station in the world initiated by Eskom, South Africa's largest electricity generator.

PPC Cement have been contracted to deliver the high quality cement

It will also have improved environmental performance and the planned operational life of the station is 50 years. Other coal-fired power stations include Mpumalanga's Arnot and Camden Power stations.

PPC Area Manager in Limpopo, Gavin Gouws, says the cement supplied by PPC will be used to construct the power station's six units, lift shafts, chimneys, ancillary roads and infrastructure.

"PPC Cement have been contracted to deliver the high quality cement on time. Initial estimation for the project was 450 000 cubic meters of concrete, however the revised estimation is now 1 million cubic meters of concrete – equivalent to filling up 400 Olympic sized swimming pools," he said.

One of the key requirements from the project was that the supplier of cement had to be able to deliver an uninterrupted supply of a pure cement (CEM I) during the whole project. PPC's well know OPC together with the Dwaalboom factory, were able to meet these stringent requirements.

OPC is a premium Portland Cement made from high quality raw materials; clinker being inter-ground with gypsum to control setting. It's formulated to produce cost-effective concrete products and its applications include concrete, grouts, precast products, shotcrete, masonry products and specialist applications. It can also be used in mortar, plaster and screed mixes.

In 2007, Eskom began the process of building the new power station; formerly known as Project Alpha and Project Charlie to meet the demands of South Africa's electricity requirements.

Three of PPC's key customers Murray Roberts and Construction, Grinaker-LTA and Concor Engineering, formed a joint venture to ensure the success of the project.

The power station is expected to be completed by 2015.

Sales and Marketing

PPC Cement receives fifth Diamond Arrow Award

Pretoria Portland Cement has successfully scooped its fifth Diamond Arrow Award, in the category for cement and concrete/readymix suppliers. PPC achieved the highest overall rating with a score of 4.31 out of a possible 5.00. The awards are based on research conducted by PMR.africa, and the purpose is to enhance and recognise excellence in the industry.

PPC Sales & Marketing team (L-R) Deon Jansen (Retail Manager), Dominique Dos Santos (Sales Consultant), Warren Goliath (General Manager, Marketing), Sibongile Mooko (General Manager, Marketing Services), Rajesh Harripersadh (Retail Manager), Naseam Ismail(Marketing Consultant), Gavin Gouws (Area Manager, Polokwane), Nosipho Sefoloko (Key Accounts Manager), Junaid Jansen (Sales Consultant).

The final results were collated through PMR.africa's annual national survey, which evaluates and measures customer service and customer satisfaction. A random national sample comprising of building material retailers and construction company representatives were interviewed.

Companies were rated across 12 attributes including their ability to meet orders, competitive pricing, do deliveries meet promises, environmental friendly solutions, flexibility, price/cost, quality of products, range of products on offer, reputation of the supplier, responsiveness to queries, social responsibility initiatives and sustainable development practices

Through the awards, PMR.africa aims to set a benchmark in the industry for others to aspire to. Further, the awards create an opportunity for companies to acknowledge and recognise all their staff for the success in achieving excellence in product and customer service.

PPC Cement has won the Diamond Arrow Award in 2002, 2003, 2006, and last year. According to Richard Tomes, Customer Executive at PPC, the award is testament to PPC Cement's strength and helping our customers realise their vision.

"We're excited to receive the Diamond Arrow Award, as it showcases the expertise in our company. PPC is appreciative of every employee for their commitment, and the support of all our service providers and customers, as this would not have been achieved without them," he adds.

Johan Hattingh, PMR.africa's CEO says, "Based on the criteria on which the respondents evaluated the different suppliers, PPC Cement excelled particularly on their delivery promises, quality and reputation."

Construction Projects

Construction Project Updates

New Construction Projects Announced

Purpose

The purpose of this monthly newsletter is to keep PPC's stakeholders informed on the PPC business and construction industry related news.

Enquiries about the content of this document can be directed to Kevin Odendaal, Executive Strategy and Corporate Communications, on KOdendaal@ppc.co.za

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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.