PPC LIMITED — Annual Report 2023

Jul 28, 2023

PPC Ltd 148 Katherine Street (Cnr Grayston Drive) Sandton, 2196 Johannesburg

Audited annual financial statements 2023

Driving performance to sustain our purpose

• 1 Approval of the financial statements
• 2 Chief executive officer and chief financial officer (financial director) responsibility statement
• 2 Certificate by company secretary
• 2 Preparer of the financial statements
• 3 Independent auditor's report
• 7 Directors' report
• 14 Audit, risk and compliance committee report
• 17 Consolidated statement of financial position
• 18 Consolidated statement of profit or loss
• 19 Consolidated statement of other comprehensive income
• 20 Consolidated statement of changes in equity
• 21 Consolidated statement of cash flows
• 22 Segmental information
• 24 Notes to the consolidated financial statements
• 94 Company statement of financial position
• 95 Company statement of profit or loss
• 96 Company statement of other comprehensive income
• 97 Company statement of changes in equity
• 98 Company statement of cash flows
• 99 Notes to the company financial statements
• 119 PPC Ltd shareholder analysis
• 120 Corporate information

contents

FINANCIAL STATEMENTS

The directors of PPC Ltd (the company) and PPC Ltd and its subsidiaries (the group) are responsible for the preparation of the annual financial statements that fairly present the state of affairs of the company and group as at the end of the financial year and of the profit or loss and cash flows for that year in accordance with International Financial Reporting Standards (IFRS) and per the requirements of the Companies Act 71 of 2008 (Companies Act). The directors of the company are responsible for the maintenance of adequate accounting records and the preparation and integrity of the annual financial statements and related information.

The directors are responsible for the systems of internal control, including controls over the security of the group and company website and electronic distribution of annual reports and other financial information. These are designed to provide reasonable but not absolute assurance as to the reliability of the annual financial statements and to adequately safeguard, verify and maintain accountability for assets, and to prevent and detect material misstatements and loss. The systems are implemented and monitored by suitably trained personnel with appropriate segregation of authority and duties.

The internal audit function is led by the group internal audit executive and comprises internal employees and external resources where required. It serves management and the board of directors (board) by performing, amongst other things, an independent evaluation of the adequacy and effectiveness of risk management, internal controls and financial reporting mechanisms.

The group continues to address control weaknesses identified. However, the group's improved system of internal controls, supplemented where necessary by compensating procedures, continues to provide a reasonable basis for the preparation of reliable annual financial statements in all material aspects.

The annual financial statements have been prepared in accordance with IFRS, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and the Financial Pronouncements as issued by the Financial Reporting Standards Council and the requirements of the Companies Act and are based on appropriate accounting policies, supported by reasonable judgements. These accounting policies have been applied consistently compared to the prior year.

The annual financial statements have been compiled under the supervision of B Berlin CA(SA) (chief financial officer) and have been audited in terms of section 29(1) of the Companies Act.

The directors are of the opinion that the company and the group have adequate resources to continue in operation for the foreseeable future based on forecasts and available cash resources and accordingly, the annual financial statements have been prepared on a going concern basis (refer to note 36 and, in the case of the company, note 25).

It is the responsibility of the external auditor to express an opinion on the company and group annual financial statements. For their unmodified report to the shareholders of the company and group, refer to the independent auditor's report.

The annual financial statements of the company and the group for the year ended 31 March 2023 as set out on pages 1 to 120 were approved by the board of directors at its meeting held on 25 June 2023 and are signed on its behalf by:

FEEDBACK

We encourage feedback on our integrated reporting suite.

Kindly direct feedback to the group company secretary,

Mr Kevin Ross kevin.ross@ppc.co.za +27(11) 386 9585

APPROVAL OF THE FINANCIAL STATEMENTS

Details for obtaining copies of the integrated report are also available from our group company secretary.

for the year ended 31 March 2023

PJ Moleketi R van Wijnen B Berlin Chairman Chief executive officer Chief financial officer

Independent auditor's report To the Shareholders of PPC Limited

Report on the audit of the consolidated and separate financial statements

Our opinion

In our opinion, the consolidated and separate financial statements present fairly, in all material respects, the consolidated and separate financial position of PPC Limited (the Company) and its subsidiaries (together the Group) as at 31 March 2023, and its consolidated and separate financial performance and its consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa.

What we have audited

PPC Limited's consolidated and separate financial statements set out on pages 17 to 118 comprise:

• the consolidated and company statements of financial position as at 31 March 2023;

• the consolidated and company statements of profit or loss for the year then ended;

• the consolidated and company statements of other comprehensive income for the year then ended;

• the consolidated and company statements of changes in equity for the year then ended;

• the consolidated and company statements of cash flows for the year then ended; and

• the notes to the financial statements, which include a summary of significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated and separate financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

INDEPENDENCE

We are independent of the Group in accordance with the Independent Regulatory Board for Auditors' Code of Professional Conduct for Registered Auditors (IRBA Code) and other independence requirements applicable to performing audits of financial statements in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IRBA Code and in accordance with other ethical requirements applicable to performing audits in South Africa. The IRBA Code is consistent with the corresponding sections of the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards).

Our audit approach

• Overall group materiality: R74 million, which represents 0.75% of consolidated revenue.

• The Group conducts its operations through nineteen components. We performed full scope audits over four components due to their financial significance, risk associated with the component and to obtain sufficient

• We performed specified procedures over two of the components due to the risk and financial impact

• We performed analytical procedures on components not in scope for audit or specified procedures.

CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER (FINANCIAL DIRECTOR) RESPONSIBILITY STATEMENT

Each of the directors, whose names are stated below, hereby confirm that:

• (a) The annual financial statements set out on pages 1 to 120, fairly present in all material respects the financial position, financial performance and cash flows of PPC Ltd and its consolidated subsidiaries in terms of International Financial Reporting Standards (IFRS)
• (b) To the best of our knowledge and belief, no facts have been omitted or untrue statements made that would make the consolidated and separate annual financial statements false or misleading
• (c) Internal financial controls have been put in place to ensure that material information relating to PPC Ltd and its consolidated subsidiaries have been provided to effectively prepare the consolidated and separate annual financial statements of PPC Ltd
• (d) The internal financial controls are adequate and effective and can be relied upon in compiling the consolidated and separate annual financial statements, having fulfilled our role and function as executive directors with primary responsibility for implementation and execution of controls. Where we are not satisfied, we have disclosed to the audit, risk and compliance committee (ARCC) and the auditors any deficiencies in design and operational effectiveness of the internal financial controls and have remediated the deficiencies
• (e) We are not aware of any fraud involving directors

R van Wijnen B Berlin

Chief executive officer Chief financial officer

The directors confirm that remedial action in respect of the deficiencies reported to the audit' risk and compliance committee and the auditor, as referred to above, commenced in the prior financial year and is ongoing. Refer to the report by the audit, risk and compliance committee on page 14 for further details.

CERTIFICATE BY COMPANY SECRETARY

In terms of section 88(2)(e) of the Companies Act 71 of 2008, as amended, I certify that PPC Ltd has lodged with the Companies and Intellectual Property Commission all such returns as are required of a public company in terms of the Companies Act and that such returns are true, correct and up to date.

K Ross Company secretary 25 June 2023

PREPARER OF THE FINANCIAL STATEMENTS

These financial statements have been prepared under the supervision of the chief financial officer, B Berlin CA(SA).

B Berlin Chief financial officer 25 June 2023

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated and separate financial statements. In particular, we considered where the directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

MATERIALITY

The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether

the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the consolidated financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate on the financial statements as a whole.

We chose consolidated revenue as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly measured by users for evaluating the Group's performance and

Overall group materiality	R74 million
How we determined it	0.75% of consolidated revenue
Rationale for the materialitybenchmark applied	reflecting its core operational activities.
	materiality.

We chose 0.75% based on our professional judgement, after consideration of the range of quantitative materiality thresholds that we would typically apply when using revenue as a benchmark in calculating

independent auditor's report continued

HOW WE TAILORED OUR GROUP AUDIT SCOPE

We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.

Our scoping assessment included consideration of the financial significance of the Group's 19 components as well as the sufficiency of work planned to be performed over material consolidated financial statement line items. We identified four components that were considered to be financially significant based on the risk associated with the components, their contribution to total consolidated revenue and total consolidated assets. Full scope audits were performed on these four components. In addition to the full scope audits we performed specified procedures over two components, based on their financial significance, the risk associated with the component and to obtain coverage across the Group. Analytical review procedures were performed over all remaining components not in scope, to assess whether any risks exist that would require additional audit procedures.

Where the work was performed by component auditors, we determined the level of involvement necessary in the audit work at those

KEY AUDIT MATTER HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER

IMPAIRMENT ASSESSMENT OF THE RWANDA CGU

Refer to the following accounting policies and notes to the consolidated financial statement for details:

• Note 1.3: Significant judgements made by management and sources of estimation uncertainty
• Note 4: Goodwill
• Note 21: Impairments and reversals of impairments

Management recognised an impairment of R84 million relating to the Rwanda CGU of which R42 million was allocated to goodwill, R14 million to intangible assets and R28 million to property, plant and equipment for the financial year ended 31 March 2023. At the financial year end, the goodwill recognised for the Rwanda CGU was fully impaired based on their assessment on value in-use calculations, which have been estimated using a discounted cash flow model.

Management performed their annual impairment assessment in accordance with the requirements of International Accounting Standard ("IAS") 36 - Impairment of Assets ("IAS 36"). Where an impairment indicator exists, the recoverable amount of an asset is calculated and compared to the carrying value. The recoverable amount of the CGUs are determined using valuein-use assessments. The present value of the cash flows in the value-in-use assessment is compared to the carrying value of the CGU and, if lower, the assets are written down the recoverable amount.

In determining the value-in-use of the CGU, management made assumptions, and applied significant judgement. The value-in-use calculation is sensitive to changes in future cash flows, which are estimated over the life-of-mine of 15 years and approved financial budgets covering a five-year period.

Key assumptions made in the calculation, include:

• the long-term growth rate;
• the discount rate; and
• life-of-mine.

The impairment assessment relating to the Rwanda CGU is considered to be a matter of most significance to the current year audit due to the significant judgements applied by management with regards to determining the key assumptions and future cash flows that are included in the value-in-use calculation.

We obtained the Group's impairment assessment and tested the mathematical accuracy of management's calculations and the reasonableness of the key assumptions, including discount rate and terminal growth rate estimates by performing the following procedures:

We utilised our valuation expertise to assess the valuation methodology applied by management to be consistent with industry practice and in line with the requirements of IAS 36.

We agreed management's cash flow forecasts to the board-approved budgets and noted no material exceptions.

We assessed the reliability of the Group's budgets (which form the basis of the future earnings in the cash flow forecasts) and of the budgeting process by comparing prior period budgets to actual results. No material exceptions were noted.

We compared the long-term growth rates used by management to longterm inflation rates and found the long term growth rates applied by management to be reasonable. Furthermore, we incorporated the inflation rate into our stress testing referred to below, to assess the impact of the rate on the value-in-use valuation results and found that the growth rates applied by management are reasonable.

With assistance of our valuation experts, we assessed the reasonableness of the assumptions and inputs applied by management in their calculation as follows:

• We held discussions with management and obtained an understanding of the rationale for the discount rate applied;
• Using our independently calculated discount rate, we performed a stress test on the impairment calculation by applying our independently calculated discount rates to the value in use to assess whether there is an impairment. No material exceptions were noted; and
• We assessed the appropriateness of the discount rate used by management in the cash flow forecast, by comparing the discount rate against our own internally developed range of acceptable discount rates, which took into account independently obtained data such as the cost of debt, the risk-free rate in Rwanda, country risk premium for Rwanda, debt/equity ratios as well as the beta of comparable companies. Whilst our independently determined key assumptions were different from those applied by management in certain instances, the discount rate adopted by management fell within our internally developed range.

We assessed the reasonability of the 15 year life-of-mine assumption by considering the remaining limestone reserves available through industry methodology and found the assumption reasonable.

independent auditor's report continued

components to be able to conclude whether sufficient appropriate audit evidence has been obtained as a basis for our opinion on the consolidated and separate financial statements as a whole.

We assessed the competence, knowledge and experience of the component auditors and evaluated the procedures performed on the significant audit areas to assess the adequacy thereof in pursuit of our audit opinion on the consolidated and separate financial statements. Throughout the audit, various discussions were held with the component auditors and we inspected component auditors' working papers relating to areas of significant risks in the consolidated and separate financial statements.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated and separate financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined that there are no key audit matters to communicate in our report in respect of the separate financial statements.

KEY AUDIT MATTER HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER

ACCOUNTING FOR THE LOSS OF CONTROL IN PPC BARNET

Refer to the following accounting policies and notes to the consolidated financial statement for the disclosures as it relates to this key audit matter:

• Note 1.3: Significant judgements made by management and sources of estimation uncertainty;
• Note 8: Assets classified as held for sale and disposal groups;
• Note 20: Disposal of subsidiaries; and
• Note 31: Equity-accounted investments.

The Group accounted for its investment in PPC Barnet as a discontinued operation until 29 April 2022 where all conditions precedent to the binding long-form agreements for the restructure of senior lender debt were met, resulting in PPC losing control of PPC Barnet. This resulted in the Group ceasing to consolidate PPC Barnet for the year ended 31 March 2023 and treating the investment in PPC Barnet as an equity accounted investment.

The following was considered by the Group in accounting for the investment in PPC Barnet at year-end:

• The Group's power to direct the relevant activities of PPC Barnet;
• The Group's exposure to variable returns of PPC Barnet;
• The Group's ability to use its power over PPC Barnet to affect the amount of PPC Barnet's returns;
• The effective date of the loss of control; and
• Derecognition of PPC Barnet's assets, liabilities and non-controlling interest.

We considered the accounting for the loss of control in PPC Barnet to be a matter of most significance to the current year audit due to the significant judgements applied by management in assessing whether all conditions precedent to the binding long-form agreements for the restructure of senior lender debt being met resulted in a loss of control.

Our audit addressed this key audit matter as follows: With the assistance of our accounting technical experts, we considered the appropriateness of accounting for the loss of control in PPC Barnet, in accordance with the requirements of IFRS 10 – Consolidated Financial Statements, where we:

• Considered the Group's ability to direct relevant activities, taking into account PPC Barnet's governance and the issuance of nominally priced call options to the senior lenders of PPC Barnet;
• Read agreements relating to the call options, management fees and amendments to the restructuring plan to identify key features in determining the effective date of loss of control; and
• Considered whether the Group has any residual exposure to the amounts owed by PPC Barnet to its senior lender group, following the restructuring date.

We found management's accounting treatment and judgements applied reasonable, with no material exceptions noted.

We tested the appropriateness of the accounting for the remaining interest in PPC Barnet as an equity accounted investment, in accordance with IAS 28 - Investments in Associates and Joint Ventures, including the cost of the investment and the Group's share of profit or loss for the period No material exceptions noted.

Recalculated the accounting entries, including the derecognition of assets, liabilities, non-controlling interest and the recycling of the foreign currency translation reserve associated with the loss of control. No material exceptions noted.

Other information

The directors are responsible for the other information. The other information comprises the information included in the document titled "PPC Audited annual financial statements 2023", which includes the Directors' report, the Audit, risk and compliance committee report and the Certificate by the company secretary as required by the Companies Act of South Africa, which we obtained prior to the date of this auditor's report, and the document titled "PPC Integrated Report 2023", which is expected to be made available to us after that date. The other information does not include the consolidated or the separate financial statements and our auditor's report thereon.

Our opinion on the consolidated and separate financial statements does not cover the other information and we do not and will not express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the consolidated and separate financial statements

The directors are responsible for the preparation and fair presentation of the consolidated and separate financial statements in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa, and for such internal control as the directors determine is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated and separate financial statements, the directors are responsible for assessing the Group and the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group and/or the Company or to cease operations, or have no realistic alternative but to do so.

independent auditor's report continued

Auditor's responsibilities for the audit of the consolidated and separate financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and / or Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

DIRECTORS' REPORT

The PPC board of directors has pleasure in presenting its report on the financial statements of the company and group for the year ended 31 March 2023.

NATURE OF THE BUSINESS

PPC Ltd, its subsidiaries and equity-accounted investments operate in Africa as producers of cement, aggregates, readymix and fly ash.

The principal activities of the group remain unchanged from the previous reporting period.

REVIEW OF OPERATIONS AND FINANCIAL RESULTS

PPC accounted for the PPC Barnet (DRC) as a discontinued operation until 29 April 2022, whereafter it was deconsolidated and treated as an equity-accounted investment.

GROUP PERFORMANCE

PPC continues to focus on sound capital allocation principles, maximising cash generation from its South African and Botswana businesses (the SA obligor group) and repatriating cash from its investments in Zimbabwe and Rwanda (the International Businesses). Historically, dividends from Zimbabwe have contributed to the deleveraging of the group's South African balance sheet. However, in FY23, the SA obligor group reached an optimal level of gearing that allows for the implementation of a new distribution policy. This policy is based on distributing an amount of cash such that the 12-month backward and expected 12-month forward SA obligor group gross debt to EBITDA is at a ratio of between 1.3 times to 1.5 times. A distribution in the form of a share repurchase of up to R200 million was approved by the board.

The SA obligor group revenue for the year ended 31 March 2023, excluding dividends from the International Businesses, increased by 1,31% to R6 586 million (March 2022: R6 501 million), driven primarily by the 1,7% increase in revenue in South Africa and Botswana Cement. While cement volumes remained under pressure, declining 5,8% on the prior year, average price increases of 8,0% over the period ensured revenue growth remained positive, albeit slightly (0,5%) negatively affected by adverse product mix. Including the impact of the International Businesses, which contributed 33% (March 2022: 34%), total group revenue was flat at R9 902 million (March 2022: R9 882 million). The 29% increase in revenue from CIMERWA (Rwanda) was more than offset by the reduced contribution of PPC Zimbabwe due to reported sales in ZAR declining by 19%.

Excluding the International Businesses' cost of sales and administration and other operating expenditure for both periods, such costs in the SA obligor group increased by 4% year-on-year. Including the International Businesses, cost of sales and administration and other operating expenditure was flat at R9 425 million (March 2022: R9 409 million). Zimbabwe's costs in rands decreased by 23%, which more than offset CIMERWA's cost increases (in rands) of 26%.

SA obligor group EBITDA, excluding dividends from the International Businesses, decreased by 26% to R570 million (March 2022: R768 million) and EBITDA margins declined to 8,7% (March 2022: 11,8%) as, notwithstanding sound cost containment measures, cost increases remain higher than price increases, resulting in compressed margins.

Including the dividends received from the International Businesses, the SA obligor group's EBITDA amounted to R804 million (March 2022: R863 million), resulting in gross debt to EBITDA ratio of 1.2 times, thereby facilitating the R200 million share repurchase.

Including the EBITDA of the International Businesses, group EBITDA declined by 9% to R1 358 million (March 2022: R1 493 million). The 31% increase in CIMERWA's EBITDA was partially offset by a reduction in PPC Zimbabwe's contribution of 7%.

Fair value and foreign exchange movements resulted in a gain of R69 million (March 2022: R2 million), mainly due to the significant depreciation of the Zimbabwean dollar against the United States dollar of 553% (March 2022: 69%) which resulted in foreign exchange gains on net monetary items.

Impairments of R145 million (March 2022: R38 million) were taken during the year under review, the largest item being R84 million. This related to an impairment at group level of a portion of the premium paid on the acquisition of CIMERWA. Of the R84 million, R42 million related to the impairment of goodwill.

Finance costs decreased by 28% to R172 million (March 2022: R240 million), due to the successful de-gearing of the group with gross debt declining from R1 586 million at March 2022 to R1 189 million at March 2023.

During the current year, the group realised a net profit of R23 million (March 2022: nil) from the disposal of the previously equity-accounted investment in Habesha.

Notwithstanding group profit before tax declining to R93 million (March 2022: R186 million), taxation increased 17% to R242 million (March 2022: R207 million). The current year tax charge is significantly negatively impacted by non-cash items of R195 million (March 2022: R56 million). These non-cash items are primarily due to the SA obligor group not recognising deferred tax assets and PPC Zimbabwe hyperinflation impacts.

Basic earnings per share (EPS) from continuing operations decreased from a loss of 5 cents to a loss of 16 cents. Headline earnings per share (HEPS) from continuing operations decreased from a loss of 3 cents to a loss of 8 cents. This is primarily due to the impact of the following:

• Significant non-cash tax items in the current year of R195 million (March 2022: R56 million), relating primarily to hyperinflation accounting and deferred tax not recognised on losses
• Lower earnings generation in the SA obligor group and PPC Zimbabwe
• The positive impact of the strong CIMERWA performance not flowing fully to EPS and HEPS given the operations are 51% held by PPC

Consolidated net cash inflow before financing activities from continuing operations remains positive at R392 million (March 2022: R675 million) as cash generation remains a priority.

Capital investment remained disciplined and reduced to R415 million (March 2022: R553 million). The reduction in spend was largely attributable to lower capital expenditure in the South Africa and Botswana cement operations (R53 million reduction) and Zimbabwe (R69 million reduction).

The SA obligor group's gross debt (excluding capitalised transaction costs) declined from R1 210 million at 31 March 2022 to R931 million at 31 March 2023 in accordance with the debt repayment terms. Unrestricted cash holdings at 31 March 2023 were R131 million (March 2022: R147 million), leaving net debt at R800 million (31 March 2022: R1 063 million).

Zimbabwe is debt-free and had unrestricted cash holdings at 31 March 2023 of R118 million. The cash balance declined from R353 million at 30 September 2022 due to a dividend of US$5 million paid in November 2022 and lower US$ balances at year-end with the cash holdings in ZWL depreciating significantly against the rand. Some 70% of PPC Zimbabwe's cash is held in hard currencies.

CIMERWA's gross debt declined to R265 million (March 2022: R383 million). Cash also declined from R221 million at 31 March 2022 to R160 million at 31 March 2023, due to the dividend paid in March of R172 million.

for the year ended 31 March 2023

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

In terms of the IRBA Rule published in Government Gazette Number 39475 dated 4 December 2015, we report that PricewaterhouseCoopers Inc. has been the auditor of PPC Limited for one year.

PricewaterhouseCoopers Inc.

Director: Nqaba Ndiweni Registered Auditor Johannesburg, South Africa 26 June 2023

CEMENT SOUTH AFRICA AND BOTSWANA

The coastal region continued to see good demand for cement and imports remained relatively muted. The growth in sales volumes in the coastal region was offset by continued weak trading conditions in the inland region, leaving overall cement sales volumes in South Africa and Botswana down 5,8% compared to the prior year.

The coastal region saw an increase in cement volumes due to increased industrial construction activity and specific government projects as well as improved retail sales. Cement imports into the Western Cape remained low during the period due to global supply chain constraints and a weaker rand.

There was a decline in demand in the larger inland region in both the retail and the construction segments, with the construction sector being supported to some extent by the building of distribution centres and housing estates.

During the year under review, PPC continued to increase its selling prices on a bi-annual basis and achieved an average selling price increase of 8,0%. For the year ended 31 March 2023, PPC South Africa and Botswana cement revenue increased by 1,7% to R5 509 million (March 2022: R5 415 million), marginally negatively affected by 0,5% due to adverse product mix.

High input cost inflation was experienced during the year, with variable production costs per tonne increasing by some 14% compared to the prior period. Cost mitigation measures reduced the impact of the high input costs, with fixed administration and overhead costs decreasing by some 1,4% year-on-year. Overall, total costs increased by 4% compared to FY22.

EBITDA decreased to R674 million (March 2022: R825 million) with a margin of 11,7% (March 2022: 14,5%) as selling price increases continued to lag cost increases.

MATERIALS BUSINESS

AGGREGATES, READYMIX AND ASH

Readymix volumes decreased by 4%, while aggregates volumes decreased by 22% compared to the prior year. Fly ash sales volumes declined by 18%. Overall revenue for the materials division decreased by 1% to R1 077 million (March 2022: R1 086 million), due to the largest contributor to the materials business, readymix, experiencing relatively stable demand but an increase in selling prices which enabled its revenues to grow by 6%. Overall, the materials businesses incurred an EBITDA loss of R65 million (March 2022: R41 million profit). Measures were implemented prior to 31 March 2023 to restructure, in particular, the aggregates business to decrease absolute fixed costs and convert certain fixed costs to variable costs as part of the turnaround efforts for the overall materials businesses.

INTERNATIONAL

ZIMBABWE

The impact of the planned extended kiln shut down in the first half of the year for special maintenance and the installation of the bag house and bucket elevator resulted in limited clinker production and ultimately restricted the volumes of cement sold during the period. In addition, plant stoppages due to power interruptions negatively affected performance. Volumes year-on-year were down 16% despite robust cement demand from concrete product manufacturers and government-funded infrastructure projects. Government reduced the number of cement import licences in January 2023, which will support the recovery of PPC's market share.

PPC Zimbabwe was able to implement US$ price increases to recover input cost inflation. Further, PPC Zimbabwe continued to generate adequate sales in foreign currency to sustain its operational requirements during the period and pay dividends. PPC received

US$8,9 million in dividends during the year totalling R147 million net of withholding tax (compared to US$6,2 million in the prior year).

Revenue decreased by 19% to R1 753 million (March 2022: R2 172 million). EBITDA declined by 7% to R365 million (March 2022: R393 million) in rands, but margins, due to price increases, increased to 20,8% (March 2022: 18,1%).

RWANDA

CIMERWA's cement sales volumes increased by 1% for the full year, in line with expectations given the planned kiln shut down in November 2022. The regional demand remains strong as both the domestic and cement export markets, particularly in the eastern Democratic Republic of Congo, have shown growth in demand. While competition is on the increase, as new production capacity comes online in the region, CIMERWA is expected to remain in a strong position to benefit from the continued growth of cement demand in its core markets.

Revenue for the twelve months ended 31 March 2023 increased by 29% to R1 563 million (March 2022: R1 209 million), assisted by the 9% depreciation of the rand. In local currency, revenue increased by 19%, mainly due to average price increases in local currency of 18% to offset cost inflation. EBITDA increased by 31% to R447 million (March 2022: R341 million) and EBITDA margins increased marginally to 28,6% (March 2022: 28,2%) as the contribution of premium quality product increased and CIMERWA's sales to the US$ priced regional market increased.

LEADERSHIP

Following an extensive search process, the board is in the final stages of appointing a suitable successor for Roland, whose employment contract was scheduled to come to an end on 31 August 2023. The board will communicate to the market in due course. To ensure an orderly handover, the board has agreed with Roland to extend his contract to 31 December 2023.

OUTLOOK

PPC will continue to focus its resources on Southern Africa while preserving its sound market position in Rwanda. The group has defined a series of value accretive projects to reduce CO2 emissions and future proof the business. There is a need for further operational efficiencies and cost containment measures to mitigate rising input costs as the economic climate in its key South African market remains muted and competition remains high across the portfolio. Without a significant increase in infrastructure spending and South African gross domestic product, South Africa's cement demand is expected to remain subdued. PPC South Africa is well positioned to benefit from an increase in cement demand with additional capacity readily available to capture an upswing in demand without additional capital expenditure required. PPC Zimbabwe anticipates a continued recovery and the outlook for CIMERWA in Rwanda remains positive.

FINANCIAL RESULTS

ACCOUNTING POLICIES

The annual financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and in the manner required by the Companies Act 71 of 2008. The principal accounting policies have been applied consistently with the previous year.

The company and consolidated annual financial statements include balances, transactions and other items where the application of judgement is necessary. To the extent that significant judgement was applied, the areas of judgement are noted and the appropriate disclosure is reflected in the respective notes to the consolidated and company annual financial statements.

Further details on the judgements, key inputs and sensitivity disclosures can be found in note 1 to the consolidated annual financial statements.

DIRECTORS' REPORT continued

IMPAIRMENT TESTING

PPC performs impairment assessments annually. In accordance with IAS 36 – Impairment of assets, goodwill is assessed irrespective of whether there is any indication of impairment.

During the year under review, PPC impaired goodwill of R42 million.

Individual material assets included in property, plant and equipment were considered for impairment. During the year, certain assets that are no longer in use with carrying amounts were identified. These assets were impaired and derecognised from the asset register.

PPC performs impairment calculations annually or whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. All of PPC's cash-generating- units (CGUs) are assessed for indicators or conditions that may suggest an impairment or a reversal of previous impairments recognised.

During the current financial year, management reassessed the appropriateness of the aggregation of assets for the group's previously identified CGUs and concluded that no change is needed.

Refer to note 21 for further detail on impairments. The board concluded that the following impairments and impairment reversals were appropriate:

Impairments/(impairment reversals)	Rm2023

Impairments of CGUs during the current financial year
3Q Mahuma Concrete (Readymix east region)	9
3Q Mahuma Concrete (Readymix west region)	9
3Q Mahuma Concrete (Nelspruit region)	24
CIMERWA	84
Impairment of individual assets
PPC Group Shared Services	5
PPC Aggregates SA	6
PPC Cement SA (coastal business unit)	3
PPC Cement SA (inland business)	6
Impairment reversals of individual assets
PPC Group Shared Services	(1)
Net impairment loss	145

SIGNIFICANT ACCOUNTING MATTERS

VALUATION OF ZIMBABWE BLOCKED FUNDS OWNED BY PPC LTD At 31 March 2023, PPC Ltd holds blocked funds in Zimbabwe, which funds are held by the Reserve Bank of Zimbabwe (RBZ). The blocked funds do not meet the requirements of a financial asset but PPC applies the measurement at fair value through profit or loss to determine the carrying value of the asset. The blocked funds are first translated from ZWL to rand and the exchange rate difference is recorded in foreign exchange gains or losses, after which a fair value adjustment is applied.

Hyperinflation, the challenging general economic environment and the unavailability of foreign currency in Zimbabwe were considered in the determination of an appropriate fair value adjustment to be applied to the blocked funds. Management assessed that there was an increase in the credit risk of the RBZ, resulting in the application of a fair value credit risk adjustment of 100% (2022: 90%) which resulted in a cumulative fair value adjustment of R399 million as at 31 March 2023 (2022: R292 million).

The net fair value loss on the Zimbabwe blocked funds of R32 million (2022: R18 million) comprises an increase of the intrinsic value of R75 million (2022: R7 million decrease) and a credit risk fair value loss of R107 million (2022: R11 million).

Refer to note 6.2.1 for more details.

ACCURACY OF THE HYPERINFLATION RESULTS FOR PPC ZIMBABWE

On 11 October 2019, the Public Accountants and Auditors Board of Zimbabwe classified Zimbabwe as a hyperinflationary economy in accordance with the provisions of IAS 29 – Financial reporting in hyperinflationary economies.

The results of our operations with a functional currency of ZWL dollar have been prepared in accordance with IAS 29 as if the economy has been hyperinflationary since 1 April 2019. Hyperinflationary accounting requires transactions and balances to be stated in terms of the measuring unit current at the end of the reporting period in order to account for the effect of loss of purchasing power during the period.

The group has elected to use the ZWL Consumer Price Index (ZWL CPI) as the general price index to restate amounts as the ZWL CPI provides an official observable indication of the change in the price of goods and services. The ZWL CPI is as published by the Zimbabwe National Statistics Agency. The RBZ and Zimbabwe Statistics (ZIMSTAT) ceased publishing the ZWL CPI in January 2023. In terms of IAS 29, where a general price index is not available, reporting entities may use an estimate based, for example, on the movements in the exchange rate between the functional currency and a stable foreign currency. Management exercised its judgement to use the ZWL dollar depreciation against the United States dollar in February 2023 and March 2023 as a proxy for the ZWL CPI for these months.

The PPC group followed the approach below in computing and recording the necessary hyperinflation adjustments:

• Non-monetary assets and liabilities opening balances were indexed up using the ZWL CPI at 31 March 2019
• The current period movements were indexed up from the date
• of initial recording using the ZWL CPI applicable throughout the year • Net monetary loss for the current period was recognised in profit or
• loss and disclosed separately on the face of the statement of profit or loss • On consolidation, PPC Zimbabwe hyperinflation accounts were
• translated at the closing exchange rate at 31 March 2023 as per IAS 29 principles

Refer to note 1.6 for more details.

EVENTS AFTER REPORTING DATE

Refer to note 33 in the consolidated financial statements for events after the reporting date.

FINANCIAL REPORTING PROCESS

Under the oversight of the audit, risk and compliance committee (ARCC), PPC has continued with a number of initiatives during FY23 to further improve its internal financial controls and reporting process. These are elaborated on in the ARCC report.

The ARCC's overall assessment of the group's internal controls over financial reporting is that such controls have been further embedded during FY23 and where some deficiencies still exist, adequate compensating measures have been taken where appropriate to provide reasonable assurance that the annual financial statements fairly present in all material respects the financial position, performance and cash flows of the group and company in accordance with the accounting standards.

The chief executive officer and chief financial officer (CFO) have disclosed to the ARCC and the auditors a comprehensive list of the deficiencies in design and operational effectiveness of the internal financial controls, together with a description of the actions required to be taken to remediate these deficiencies. The committee is satisfied that the rectification actions will improve the effectiveness of the internal financial controls, particularly at the business-unit level, and was pleased to note that there has been continued significant reduction in the quantum of deficiencies.

The ARCC reviewed the expertise of the CFO for the year ended 31 March 2023 under whose supervision the FY23 annual financial statements have been prepared, and was satisfied that she had the qualifications and experience to discharge her duties.

MATERIAL RISKS

SUBSTANDARD CEMENT QUALITY IN THE SOUTH AFRICAN MARKET

Cement is the primary material used in concrete, which is, in turn, used to build infrastructure. As such, substandard quality cement is potentially dangerous to the users of that infrastructure. Substandard products also undermine the public's confidence in the use of cement.

To remain sustainable, the local cement industry must be protected from the unfair competition it is exposed to by substandard products, whether blended locally or imported.

OVERCAPACITY IN SOUTH AFRICA

Overcapacity and a fragmented cement market limit the ability to grow earnings and reflect cost inflation into cement market prices. Increasingly, it is imperative to protect the local industry and create a level playing field in relation to import dumping practices.

Management is determined to defend the cement industry and its strategic position within the broader economic context of South Africa through regular and consistent dialogues with the relevant government bodies.

LOW DEMAND IN SOUTH AFRICA DUE TO SLOW ECONOMIC GROWTH

Commercial infrastructure projects were halted during the COVID-19 crisis and, coupled with the current economic crisis, the uptake in demand has not materialised.

PPC has the capacity to provide products to address the infrastructure backlogs as and when projects start as demonstrated during the unexpected high demand post the COVID-19 lockdowns.

CLIMATE CHANGE AND THE NEED TO REDUCE THE GROUP'S ENVIRONMENTAL IMPACT

During cement production, the processing of raw materials releases dust, noise and carbon dioxide (CO2 ) emissions.

PPC is committed to reducing its CO2 emissions, using energy efficiently and replacing fossil fuels with alternative fuels and raw materials, wherever possible.

TALENT MANAGEMENT AND DEVELOPMENT

The risk of lack of knowledge and skills across all functions and levels of the group has been recognised as more relevant given the need to further improve operational performance, IT system design and usage, and the introduction of innovative technologies in the company's core operations.

Development plans are being embedded across the business. A partnership with a reputable business school has initiated leadership development for tactical and strategic levels of leadership. Furthermore, a partnership with a first-line leader development training partner assists with the development of our operational leaders. The technical skills academy focuses on semi-skilled technical development. A graduate development programme and a bursary programme were initiated in FY23.

ABILITY TO EFFECTIVELY UTILISE ACCESS TO PROCESS AND PRODUCT INNOVATION

Several large companies in the global cement industry have much greater resources in comparison to PPC, enabling them to spend more on research and development and thereby benefit the entire industry.

PPC's partnerships and membership at the World Cement Association will allow it to access the latest trends and technologies, creating a space for the company as a "fast follower" in innovation and opening opportunities for improvement within the organisation.

POLITICAL INSTABILITY AND CIVIL UNREST

PPC operates mainly in sub-Saharan Africa and is exposed directly to the effects of economic, political, and social instability, foreign exchange volatility and civil unrest. Macro-economic challenges, such as lack of employment, currency depreciation and volatility, and electricity shortage place pressure on the economies of the countries where we operate. Regional and national political tensions may result in social unrest affecting our operations and employees. Uncertainty over future business conditions leads to a lack of confidence in making investment decisions, which can influence future financial performance in terms of infrastructure development.

Adequate emergency responses and crisis management plans are in place. Transparent and ongoing communication lines with communities and trade unions are maintained. The rollout of bursaries, learnerships (Youth Employment Services (YES) programme) and skills development programmes have been a main focus. Management has built and maintained relationships with the local, provincial and national government and its affiliated networks.

CREDIBILITY TO EXTERNAL STAKEHOLDERS

PPC strives to be considered credible in the eyes of its stakeholders and does this by ensuring its trustworthiness. Stakeholders are becoming increasingly impatient with inaction and expect companies to meet their obligations and promises.

By delivering on its agreements with its stakeholders and meeting their expectations timeously, PPC will create value and meet its strategic objectives.

REGULATORY ENVIRONMENT

As a multinational organisation, it is PPC's responsibility to comply with the different regulatory and legislative requirements of the regions in which it operates.

DIRECTORS' REPORT continued

INTERNAL PROCESS CONTROL FRAMEWORK

PPC's internal process control framework is necessary to inspire confidence in its ability to create value. Transparency in the company's risk process assures shareholders who entrust PPC with their capital on how the company manages risk.

As a responsible corporate citizen, PPC embeds these frameworks across the business.

SUBSIDIARY COMPANIES

Details of the group's subsidiaries can be found in note 34 to the annual financial statements. The only change in the shareholding of operating subsidiaries during the year was the sale by PPC of 10% of its indirect stake in PPC Barnet (DRC), which, with effect from 30 April 2022, was treated as an equity-accounted investment.

PROPERTY, PLANT AND EQUIPMENT

At March 2023, the group's net investment in property, plant and equipment amounted to R7 331 million (2022: R9 255 million), details of which are set out in note 2 to the consolidated annual financial statements.

There has been no change in the nature of the property, plant and equipment or to the policies relating to the use thereof during the year.

Impairment assessments of individual material assets and all CGUs were undertaken during FY23. Details of these impairments have been discussed earlier in this report. Discussion around the methodology applied is included in note 21 to the consolidated annual financial statements.

Details of the group's capital commitments of R227 million (2022: R111 million) can be found in note 26.

STATED CAPITAL

On 31 March 2023, the issued stated capital of the company was 1 553 764 624 (2022: 1 553 764 624 ) no par value shares.

At year-end, stated capital amounted to R4 544 million (2022: R4 575 million).

Except for the purchase of the shares held for participants of the longterm employee incentive scheme, the company did not purchase any of its own shares during the year under review.

Details of authorised, issued and unissued shares at 31 March 2023 are disclosed in notes 12 and 24 to the consolidated annual financial statements.

DIVIDENDS

The board has approved a new distribution policy, which has been discussed above under group performance. A distribution in the form of a share repurchase of up to R200 million was approved by the board.

The register of members of the company is open for inspection to members and the public, during normal office hours, at the offices of the company's transfer secretaries, Computershare Investor Services (Pty) Ltd or at Corpserve (Pvt) Ltd (Zimbabwe).

Details of the transfer secretaries can be found in the corporate information section on page 120.

Details relating to the beneficial shareholders owning more than 3% of the issued stated capital of the company appear on page 119 of this report.

DIRECTORS' INTEREST IN THE ISSUED SHARES OF THE COMPANY

The aggregate direct beneficial holdings of directors and their immediate families (none of whom holds over 1%) in the issued ordinary shares of the company are detailed below.

	Number ofshares as at31 March 2023	%	Number ofshares as at31 March 2022	%
Roland van WijnenNoluvuyo Mkhondo and Daniel Smith indirect non-beneficial through	1 311 715	0,08	—	—
Value Capital Partners	246 300 866	15,85	228 023 208	14,58
	247 612 581	15,94	228 023 208	14,58

There has been no change in the directors' interest since year-end.

CORPORATE GOVERNANCE

The group subscribes to the code of good corporate practices and conduct as contained in the King IV. The PPC board has satisfied itself that the company has complied in all material aspects with the code as well as the JSE Limited (JSE) Listings Requirements.

COMPLIANCE WITH APPLICABLE LAWS

The board hereby confirms that the company is:

• In compliance with the provisions of the Companies Act and laws of establishment, specifically relating to its incorporation
• Operating in conformity with its memorandum of incorporation (MOI)

DIRECTORS' REPORT continued

At the annual general meeting (AGM) held on 9 September 2022, Mr B Hansen and Mr D Smith were elected to the board as non-executive directors and Mr A Ball retired as a non-executive director.

Ms N Gobodo, Mr C Naude and Mr M Thompson are required to retire by rotation in terms of the company's MOI at the AGM on 6 September 2023. Abbreviated CVs for each director will be provided in the notice to the AGM.

The PPC board charter provides for a clear balance of power and authority at board of directors' level to ensure that no one director has unfettered powers of decision-making.

In accordance with principle 7 paragraph 10 of King IV, the board approved a policy on directors diversity, which became effective from 4 December 2019. In accordance with that policy, the PPC reward and talent committee (RTC) reviews and assesses board composition on behalf of the board and recommends the appointment of new directors.

BOARD COMMITTEES

Audit, risk and compliance committee (ARCC)

Along with its statutory responsibilities, the ARCC provides independent oversight of the effectiveness of the group's internal audit, finance and assurance functions, risk management, and technology and information governance, in addition to overseeing PPC's compliance with relevant laws and regulations. The committee also assists the board in monitoring PPC's reporting activities, including the annual financial statements, integrated report and other external reporting.

The committee comprises at least three non-executive directors elected by shareholders at the AGM on recommendation from the RTC. All members of the ARCC are independent non-executive directors with the appropriate qualifications. Furthermore, the chairman of the board

is not eligible to be a member of the ARCC. The ARCC met six times during the financial year, of which two were extraordinary meetings. The committee comprised the following members throughout the period:

Membership as at 31 March2023	Meetingattendance	Appointed tocommittee
Mark Thompson (chair)	6/6	1 May 2019
Nonkululeko Gobodo	6/6	8 February 2017
Noluvuyo Mkhondo	6/6	17 May 2018

Attendees by invitation

CEO CFO Head of group internal audit Head of internal control Head of group legal and compliance and group company secretary Head of group treasury, risk and assurance Chief Information officer Senior financial executives Representatives from the external auditor

Social, ethics and transformation committee (SETCO)

The role of the SETCO is to assist the board by providing independent oversight and reporting on an organisational ethics, responsible corporate citizenship, sustainable development and stakeholder relationships while facilitating and supporting the development of transformation objectives. SETCO's activities include fulfilling its statutory duties as set out in section 72(4)(a) of the Companies Act 78 of 2001 (the Act), read with regulation 43 to the Act. The committee comprises at least five directors or prescribed officers, the majority

DIRECTORS' REPORT continued

of whom are independent non-executive directors, with the required skills and experience to fulfil their duties pertaining to the company's matters and businesses.

The committee met three times during the year and no extraordinary meetings were held. The committee comprised the following members at year-end:

Membership as at31 March 2023	Meetingattendance	Appointed tocommittee
Nonkululeko Gobodo (chair) 3/3		10 November 2017
Bjarne Hansen	3/3	1 November 2021
Kunyalala Maphisa	3/3	1 February 2021
Jabu Moleketi	3/3	13 April 2018
Roland van Wijnen	3/3	6 November 2019

Attendees by invitation

CFO

Managing director South Africa operations and Botswana Managing director industrial and innovation Head of group legal and compliance and group company secretary Head of human resources RSA and Botswana

Reward and talent committee (RTC)

In its nominations role, the RTC oversees the appointment of executive and non-executive directors to the board, ensures succession planning at board level, reviews the structure, size and composition of the board and its committees, and evaluates the performance of the board, its committees, its chairman and individual members. In its remuneration role, the RTC ensures PPC remunerates fairly, responsibly and transparently while promoting the achievement of strategic objectives and positive outcomes in the short-, medium- and long-term.

The committee comprises at least three non-executive directors, the majority of whom are independent, with the required skills and experience to fulfil their duties. The RTC meets at least three times per year, with additional meetings scheduled as necessary. The RTC met six times during FY23 of which three were extraordinary meetings. The committee comprised the following members at year-end:

Membership as at 31 March2023	Meetingattendance	Appointed tocommittee
Noluvuyo Mkhondo (chair)	6/6	1 October 2021
Jabu Moleketi	6/6	1 October 2021
Charles Naude	6/6	1 October 2021

Attendees by invitation CEO

Group head legal and compliance and group company secretary Head human resources RSA and Botswana Representatives from external remuneration advisors

The remuneration policy and report will be circulated with the notice of the AGM.

STRATEGY AND INVESTMENT COMMITTEE (S&IC)

The S&IC supports the board with recommendations relating to PPC's investment and divestment decisions, including ensuring operational improvement projects to maximise stakeholder value. The committee operates within the strategic guidelines established by the board.

The committee comprises at least three non-executive directors, the majority of whom are independent and have the appropriate expertise and experience to fulfil their duties. The S&IC is mandated to hold three meetings annually, with additional sessions held as required to effectively discharge its duties. During FY23, the S&IC met six times, of which three were extraordinary meetings. The committee comprised the following members at year-end:

Membership as at31 March 2023	Meetingattendance	Appointed tocommittee
Charles Naude (chair)	6/6	13 April 2015
Anthony Ball*	3/3	13 April 2018
Bjarne Hansen	6/6	1 November 2021
Kunyalala Maphisa	6/6	1 February 2021
Mark ThompsonRoland van Wijnen	6/66/6	1 August 201923 March 2022
Daniel Smith**	3/3	1 October 2022

*Retired at the 9 September 2022 AGM.

** Appointed at the 9 September 2022 AGM.

Attendees by invitation

CFO

Managing director RSA and Botswana Managing director industrial and innovation and head of group legal and compliance and group company secretary

SPECIAL RESOLUTIONS

At the AGM held on 9 September 2022, the following special resolutions were approved:

• Granting approval for the company to enter into intercompany loans by way of financial assistance in terms of sections 44 and 45 of the Companies Act with subsidiaries and other related entities within the group
• Authorised the company to pay remuneration to non-executive directors for their services as non-executive directors
• General authority to repurchase own shares or acquisition of the company's shares by a subsidiary company

SPECIAL RESOLUTIONS PASSED BY SUBSIDIARY COMPANIES

No special resolutions were passed by subsidiaries of the company.

COMPANY SECRETARY

The company secretary of PPC Ltd is Kevin Ross. His business and postal addresses appear in the corporate information section. The board has considered and satisfied itself on the competence, qualifications and experience of the company secretary.

ARCC

The directors confirm that the ARCC has addressed specific responsibilities required in terms of section 94(7) of the Companies Act 71 of 2008, as amended. Further details are contained within the report of the ARCC.

AUDITOR

The board approved, on the recommendation of the ARCC, that PricewaterhouseCoopers Inc (PwC) be appointed as the group's auditors for the financial year ended 31 March 2023, in terms of section 90 of the Companies Act, which appointment was approved by shareholders at the AGM held on 9 September 2022.

DIRECTORS

The directors in office at the date of this report are as follows:

Name	Designation	Date of appointment
Phillip Jabulani (Jabu) Moleketi	Non-executive independent chair	March 2018
Roland van Wijnen	Executive director – CEO	October 2019
Brenda Berlin	Executive director – CFO	February 2021
Nonkululeko Gobodo	Non-executive director	February 2017
Bjarne Moltke Hansen	Non-executive director	November 2021
Kunyala Maphisa	Non-executive director	February 2021
Noluvuyo Mkhondo	Non-executive director	March 2018
Charles Naude	Non-executive director	January 2015
Daniel Luke Smith	Non-executive director	October 2022
Mark Richard Thompson	Non-executive director	May 2019

OUR TERMS OF REFERENCE

The ARCC has formal terms of reference that were reviewed during the year and approved by the board. It is satisfied that it has dealt with all matters delegated to it in terms of its approved terms of reference for the year ended 31 March 2023 (FY23).

AUDIT, RISK AND COMPLIANCE COMMITTEE REPORT

I am pleased to present our report to the shareholders on the activities of the audit, risk and compliance committee (ARCC) for the year ended 31 March 2023.

Mark Thompson

Chairman

COMPOSITION, MEETING ATTENDANCE AND ASSESSMENT

The committee comprises at least three non-executive directors (NEDs) elected by shareholders on the recommendation of the then nominations committee (subsequently renamed the reward and talent committee). All members of the ARCC are independent NEDs with the appropriate qualifications.

The ARCC met six times during FY23, of which two were extraordinary meetings. During FY23 and as of the date of this report, the committee comprised the following independent NEDs:

Committee member	Qualifications	Meeting attendance	Appointed to committee
Mr Thompson (chairman)	CA(SA), BCom, LLB, BAcc	6/6	1 May 2019
N Gobodo	CA(SA)	6/6	8 February 2017
N Mkhondo	CA(SA), BAcc, MBA	6/6	17 May 2018

Mr Mark Thompson was appointed as chairman of the ARCC on 29 August 2019. The CEO, CFO, head of internal audit, senior financial executives, along with representatives from the external auditors, attend committee meetings by invitation. The internal and external auditors have unrestricted access to the committee.

ROLES AND RESPONSIBILITIES

The ARCC is a statutory committee established in terms of section 94 of the Companies Act 71 of 2008, as amended (Companies Act), and is a committee of the board. In addition to its specific statutory responsibilities, the board has assigned additional responsibilities to the committee in terms of the JSE Limited (JSE) Listings Requirements and King IV. In summary, the ARCC's responsibilities include:

• Assisting the board by advising and making submissions on financial reporting
• Overseeing governance, risk management and compliance processes, and internal controls over financial reporting
• Overseeing information technology (IT) and IT governance within the group
• Overseeing the external and internal audit functions

During the year, the committee continued to work closely with the management team to review, overhaul and improve the main governance systems for which it has oversight responsibility, namely the risk management, compliance, combined assurance systems and the group's financial reporting function.

The committee receives and deals appropriately with any concerns or complaints, whether from within or outside PPC or on its own initiative, relating to the accounting practices and internal audit of the company, the content and audit of the company's financial statements, the internal financial controls of the company and any other related matter.

APPOINTMENT OF AN INDEPENDENT EXTERNAL AUDITOR

• In executing its statutory duties for the year, the ARCC: • Satisfied itself that PricewaterhouseCoopers Inc (PwC) met the requirements of section 90(2) of the Companies Act and section 22
• of the JSE Listings Requirements • Satisfied itself with the credentials of Mr. Nqaba Ndiweni as the designated audit partner
• Satisfied itself that PwC and the designated audit partner are independent of the group, as set out in section 94(8) of the Companies Act
• Approved the appointment of PwC as independent auditor of the company for the year ending 31 March 2023 and recommended such appointment to the board. PwC's appointment as external auditor, with Mr Ndiweni as designated auditor, was approved by shareholders at the annual general meeting of the company that was held in September 2022
• Approved PwC's terms of engagement, audit plan and fees for the year

PPC has an approved policy setting out the nature and extent of any non-audit services that may or may not be provided by the group's external auditors. The committee is satisfied that all non-audit related services were carried out in accordance with the non-audit-services policy.

FINANCIAL STATEMENTS

The committee reviewed the audited annual financial statements (AFS), short-form announcements and accompanying reports to shareholders and other announcements on the group's FY23 results. The committee oversaw the preparation of the AFS in terms of IFRS and other appropriate standards as required by the JSE, taking into account the findings from the JSE's reporting back on proactive monitoring of financial statements, the final findings of the JSE's thematic reviews of compliance and its combined findings reports.

AUDIT, RISK AND COMPLIANCE COMMITTEE REPORT continued

This included a review of significant accounting policies, key accounting items (including the significant matters mentioned in the directors' report), areas of significant judgement and material assumptions and estimates made by management. In the committee's view, these were appropriate, and it recommended the AFS for approval by the board.

Last year the committee reported that the group had developed and introduced a new comprehensive financial reporting framework, incorporating 16 key components including:

• A documented set of some 430 controls aimed at providing reasonable assurance as to the integrity of the routinely produced (day-to-day) numbers. Each control is assigned to an individual owner with a process for the control owners to regularly self-assess compliance with the controls assigned to them. On a monthly basis, the internal control function performs a review of the quality of these self-assessments on a sample basis
• A formalised process to identify and deal with, via formal technical papers, significant accounting matters, such as where complex accounting, significant judgements or estimates, non-business as usual transactions or new accounting standards are involved
• Procedures to identify and deal with accounting disclosure requirements, particularly where these are not readily apparent from the numbers – such as going concern issues, covenant compliance, post balance sheet events, related-party transactions and contingent liabilities
• Various controls and review procedures over the consolidation process
• A range of higher-level procedures designed to give additional comfort as to the material correctness and fair presentation of the financial reporting, which include analytical reviews, variance analyses, sign-off by responsible executives and IFRS compliance reviews

During the year, group internal audit (GIA) continued to focus on its testing of the design and operational effectiveness of the controls over the routine (day-to-day) transactions across the group. GIA's final report for FY23 reflected that the majority of the controls were operating effectively. The CFO and the committee were satisfied that other components in the financial reporting framework compensated for those controls that were not fully effective.

At year-end, with the CFO, the committee reviewed the operating effectiveness of the other components of the financial reporting framework and was well satisfied with the progress made on entrenching these across the group.

Based on this work, the committee's overall assessment of the group's internal controls over financial reporting is that:

• A comprehensive, effectively designed control and financial reporting framework has been in place for a full year and that, in general, the various components are operating effectively.
• Ownership of controls has been embedded in the organisation down to individual sites across the business.
• Shortcomings in the design and/or operation of specific controls or processes have been clearly identified and plans to improve to an effective level are in place.
• No material financial loss, fraud, corruption or error has resulted from a failure in the financial control environment, save for the restatement related to the classification of certain amounts as described in note 1.4 to the separate company financial statements and note 1.7 of the group annual financial statements ,which impact discontinued operations.
• Notwithstanding that the group's control environment can further mature, adequate compensating measures have been taken where appropriate to provide reasonable assurance that the financial reporting of the group fairly presents in all material respects the financial position, performance and cash flows of the group and the company in accordance with the accounting standards

As required by the JSE Listing Requirements (paragraph 3.84(k) thereof), the CEO and CFO have disclosed to the committee and the auditors a comprehensive list of the deficiencies in design and operational effectiveness of the internal financial controls, together with a description of the actions required to be taken to remediate these deficiencies. The committee is satisfied that the rectification actions will improve the effectiveness of the internal financial controls and was pleased to note the ongoing reductions in the quantum of control deficiencies disclosed.

CFO AND FINANCE FUNCTION

Ms Brenda Berlin was appointed as CFO on 1 April 2021. Since her appointment, she has effected huge improvements to the finance function and the committee is now satisfied with the general effectiveness of the function under her direction.

The committee also satisfied itself as to the qualifications and experience of the CFO to discharge her duty to supervise the preparation of the FY23 AFS and to manage the financial affairs of the group.

OTHER RESPONSIBILITIES

Internal audit

The committee is responsible for overseeing the internal audit function and the appointment and remuneration of the chief audit executive. The committee was satisfied with the performance of the chief audit executive and the internal audit function.

During the year, the committee:

• Reviewed and approved the group's internal audit plan, along with amendments thereto, the internal audit charter and internal audit budget
• Monitored the progress internal audit made compared to the plan • Reviewed internal audit's compliance with its charter and was satisfied that the internal audit function has the necessary resources, budget and standing in PPC to discharge its functions
• Ensured that the internal audit function is independent, adequately qualified and experienced, and that its scope of work and access to required information was not restricted
• Reviewed the extent to which the internal audit function has coordinated with other internal and external assurance providers in providing assurance coverage
• Reviewed the internal audit results and significant audit findings together with the relevant management comments and action plans as well as the results of internal audit's annual assessment of the effectiveness of the group's governance, risk management and control processes, in accordance with King IV principle 15 recommended practice 59

The internal audit function continues to enhance its effectiveness. The use of technology remains a key strength as it assists the team to work effectively across the group in a standardised manner. A focus during the year has been on standardising internal financial control testing by developing frameworks for key business processes, which also enhances efficiencies. During the year under review, internal audit focused again almost exclusively on testing the effectiveness of the internal financial controls to provide independent assurance on this matter to the board, the committee, the CEO and the CFO. Given the progress made with embedding the internal financial controls during the year under review, in FY24 the internal audit plan will be expanded to address other risk areas in the business.

Combined assurance

The committee is charged with ensuring that a combined assurance model is applied to provide a coordinated approach to all assurance activities, which address the significant risks facing PPC, and the effectiveness of its key governance systems.

Mark Thompson Chairman 25 June 2023

AUDIT, RISK AND COMPLIANCE COMMITTEE REPORT continued

The combined assurance model that was developed in the prior year, and which clearly articulates the four levels of assurance, has now been operationalised across the group.

A combined assurance map and associated mapping exercise to identify accountability and responsibility for the various assurance processes and the extent of coverage required at each level of assurance, has been implemented across the group.

Concerted training through workshops and site visits is ongoing to embed an understanding of risk management and combined assurance throughout PPC.

The committee is satisfied with the progress to date but entrenching a culture of control assessments to achieve a mature combined assurance organisation will take time and is a focus area for FY24.

Tax function

As part of its overall responsibility for financial reporting, the committee also has specific responsibility for the tax function. The tax team is relatively new and while technical competence is satisfactory, institutional knowledge needs to improve.

The use of external tax specialists was phased out during the year under review other than ad hoc advice on complex matters. A key automation project to reduce the risk of errors will be implemented in the forthcoming financial year.

Treasury function

The treasury function is responsible for managing key financial risks, including interest rate fluctuations and foreign exchange rate changes. The function manages and monitors these exposures and recommends appropriate hedging strategies to address them.

Additionally, the team is responsible for liquidity planning, debt maturity and compliance with funding terms.

The committee is satisfied that the function is performing well and has effectively introduced automation to reduce the risk of human error.

Business risk management

The committee is responsible for overseeing the group's risk governance framework and policy, risk disclosures and reporting procedures.

The maturity of risk management is ongoing and good progress has been made to entrench a risk culture within the group. Further work needs to be done to fully implement the new risk framework and to automate the process of capturing, consolidating and recording the management of the group's business risks.

The committee is satisfied that the management of the group's business risks continues to improve in line with the maturity of risk management within the group. Furthermore, reporting of relevant risks to the other sub-committees is planned for FY24, which will further enhance integrated risk reporting and monitoring.

Information technology (IT)

The committee exercises ongoing oversight over the group's IT function and IT governance.

The IT function remains stable, and its performance in continuity of systems and security matters is satisfactory. There were no security breaches or significant system outages during the year under review. Hardware changes (such as server replacements) were well handled but changes to information systems (new IT software systems) needs closer collaboration with business to ensure business needs are adequately documented, systems tested and signed off by business. A key focus area for FY24 is the review of various business processes to ensure they are documented and standardised across the group to be SAP compatible.

An independent external IT specialist has been appointed to, amongst other things, assist the committee in its oversight of IT in FY24.

Compliance with laws, regulations and group policies

The committee is also responsible for overseeing the effectiveness of the system that aims to provide reasonable assurance as to the group's compliance with laws, regulations and group policies, as well as the results of management's investigation and follow-up of any fraudulent acts or non-compliance. The committee obtains regular updates from management regarding compliance matters.

Various reports on the effectiveness of the systems, procedures and controls employed by the company to ensure compliance with statutes, regulations and the group policies were considered by the committee. Compliance management is progressing with a much more systematic approach being entrenched with regard to key risk areas.

The committee is satisfied that all relevant regulatory compliance matters were considered during the preparation of the group's FY23 AFS.

The group's whistleblower programme is well managed, and the rollout of ethics and compliance training has been successful as measured by comprehension tests after training.

OPINION

The committee is satisfied that it has discharged its legal, regulatory and governance duties and responsibilities and that it has functioned in accordance with its terms of reference.

On behalf of the audit, risk and compliance committee,

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 31 March 2023

ASSETS

EQUITY AND LIABILITIES

			Restated(a)(b)	Restated(b)
		March	March	1 April
	Notes	2023Rm	2022Rm	2021Rm
ASSETS
Non-current assets		7 720	9 698	10 147
Property, plant and equipment	2	7 331	9 255	9 622
Right-of-use assets	3.1	68	69	68
Goodwill	4	—	37	38
Other intangible assets	5	85	113	149
Financial assets	6.1	185	166	196
Other non-current assets	6.2	24	32	50
Deferred taxation assets	7.3	27	26	24
Current assets		2 759	2 711	2 676
Inventories	9	1 287	1 085	1 111
Trade and other receivables	10	995	1 006	993
Taxation receivable		53	43	115
Cash and cash equivalents	11	424	577	457
Assets held for sale and held by disposal groups	8	8	2 919	3 659
Total assets		10 487	15 328	16 482
EQUITY AND LIABILITIES
Capital and reserves
Stated capital	12.1	4 544	4 575	3 965
Other reserves	12.2	(6 818)	(4 592)	(2 731)
Retained profit		7 999	7 367	6 115
Equity attributable to shareholders of PPC Ltd		5 725	7 350	7 349
Non-controlling interests	12.3	617	22	56
Total equity		6 342	7 372	7 405
Non-current liabilities		2 420	3 053	2 878
Provisions	13	187	211	219
Deferred taxation liabilities	7.3	1 338	1 654	1 621
Long-term borrowings	14	852	1 150	983
Other non-current liabilities	15	1	—	23
Lease liabilities	3.2	42	38	32
Current liabilities		1 725	1 781	2 900
Provisions	13	15	12	30
Trade and other payables	16	1 288	1 251	1 167
Lease liabilities	3.2	28	21	28
Short-term borrowings	14	337	436	1 645
Taxation payable		57	61	30
Liabilities associated with assets held for sale and disposal groups	8.2	—	3 122	3 299
Total equity and liabilities		10 487	15 328	16 482

(a) Accrued finance charges of R5 million have been reclassified from trade and other payables to short-term borrowings to align with the amortised cost measurement. (b) Refer to note 1.7 for details regarding the prior period restatement.

CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

for the year ended 31 March 2023

			Financial assetsat fair value
	Foreign currencytranslation reserve		through othercomprehensiveincome		Post-retirementbenefits		Retained profit		Total comprehensiveloss
	March2023Rm	March2022Rm	March2023Rm	March2022Rm	March2023Rm	March2022Rm	March2023Rm	Restated(a)March2022Rm	March2023Rm	Restated(a)March2022Rm
Loss for the year	—	—	—	—	—	—	(574)	(77)	(574)	(77)
Items that will be reclassified to profitor loss on disposal
Translation of foreign operations(b)	(2 420)	(1 443)	—	—	—	—	—	—	(2 420)	(1 443)
Loss reclassified to profit or loss ondisposal of foreign operation	111	—	—	—	—	—	—	—	111	—
Gain reclassified to profit or losson disposal of equity-accountedinvestments	(8)	—	—	—	—	—	—	—	(8)	—
Revaluation of financial assets(c)	—	—	(1)	1	—	—	—	—	(1)	1
Items that will be not reclassified toprofit or loss
Actuarial gains on post-retirementbenefits	—	—	—	—	5	—	—	—	5	—
Other comprehensive (loss)/profit netof taxation	(2 317)	(1 443)	(1)	1	5	—	—	—	(2 313)	(1 442)
Total comprehensive loss	(2 317)	(1 443)	(1)	1	5	—	(574)	(77)	(2 887)	(1 519)
Attributable to:
Shareholders of PPC Ltd – continuingoperations	(2 445)	(1 433)	(1)	1	5	—	(250)	(71)	(2 691)	(1 503)
Shareholders of PPC Ltd – discontinuedoperations	111	—	—	—	—	—	(417)	11	(306)	11
Non-controlling interests	17	(10)	—	—	—	—	93	(17)	110	(27)

(a) Refer to note 1.7 for details regarding the prior period restatement.

(b) The currency conversion guide is presented in note 1.5.and 19.2.

(c) Revaluation of financial assets has a tax impact of R0,2 million (2022: R0,2 million).

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

for the year ended 31 March 2023

			Restated(a)
		March	March
		2023	2022
	Notes	Rm	Rm
Continuing operations
Revenue	17	9 902	9 882
Cost of sales		(8 343)	(8 352)
Gross profit		1 559	1 530
(Increase)/decrease in expected credit losses on financial assets		(23)	49
Administration and other operating expenditure		(1 082)	(1 057)
Operating profit before items listed below:	27	454	522
Fair value and foreign exchange movements	19	69	2
Fair value gain on Zimbabwe financial asset		—	56
Fair value loss on Zimbabwe blocked funds	6.2.1	(32)	(18)
Net monetary loss on hyperinflation in Zimbabwe		(131)	(108)
Impairments	21	(145)	(38)
Profit before finance costs, investment income and equity-accounted investments		215	416
Finance costs	22	(172)	(240)
Investment income	23	27	10
Profit before equity-accounted investments		70	186
Profit from sale of equity-accounted investments	31	23	—
Profit before taxation		93	186
Taxation	7	(242)	(207)
Loss for the year from continuing operations		(149)	(21)
Loss for the year from discontinued operations	8.3	(425)	(56)
Loss for the year		(574)	(77)
Attributable to:
Shareholders of PPC Ltd – continuing operations		(250)	(71)
Shareholders of PPC Ltd – discontinued operations		(417)	11
Non-controlling interests		93	(17)
		(574)	(77)
Earnings/(loss) per share (cents)	24
Basic – group		(43)	(4)
Diluted – group		(43)	(4)
Basic – continuing operations		(16)	(5)
Diluted – continuing operations		(16)	(5)
Basic – discontinued operations		(27)	1
Diluted – discontinued operations		(27)	1

(a) Refer to note 1.7 for details regarding the prior period restatement.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the year ended 31 March 2023

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 31 March 2023

			Other reserves(a)
	StatedcapitalRm	ForeigncurrencytranslationreserveRm	Financialassets atfair valuethrough othercomprehensiveincomeRm	PostretirementbenefitRm	EquitycompensationreserveRm	RetainedprofitRm	Equityattributabletoshareholdersof PPC LtdRm	NoncontrollinginterestsRm	TotalequityRm
March 2023Balance at 31 March 2022	4 575	(5 054)	(3)	—	465	7 367	7 350	22	7 372
Movement for the year	(31)	(2 334)	(1)	5	104	632	(1 625)	595	(1 030)
IFRS 2 charges	—	—	—	—	27	—	27	—	27
Disposal of subsidiaries	—	—	—	—	—	(24)	(24)	579	555
Shares purchased in terms of
the share incentive scheme	(36)	—	—	—	—	—	(36)	—	(36)
Vesting of share incentive
scheme	5	—	—	—	(5)	—	—	—	—
Actuarial gains	—	—	—	5	—	—	5	—	5
Other movement	—	—	—	—	8	(7)	1	—	1
Zimbabwe hyperinflation
impact(b)	—	—	—	—	74	1 330	1 404	—	1 404
Total comprehensive income/(loss)(c)	—	(2 334)	(1)	—	—	(667)	(3 002)	110	(2 892)
Dividends declared	—	—	—	—	—	—	—	(94)	(94)
Balance at 31 March 2023	4 544	(7 388)	(4)	5	569	7 999	5 725	617	6 342
March 2022 Restated(d)
Balance at 31 March 2021	3 965	(3 633)	(4)	—	906	5 649	6 883	(153)	6 730
Prior year adjustment-DRCimpairment	—	—	—	—	—	466	466	209	675
Balance at 31 March 2021restated	3 965	(3 633)	(4)	—	906	6 115	7 349	56	7 405
IFRS 2 charges	—	—	—	—	36	—	36	—	36
Share incentive schemeforfeited	—	—	—	—	(10)	5	(5)	—	(5)
Sale of shares treatedas treasury shares byconsolidated BEE specialpurpose vehicles (SPVs)	631	—	—	—	(550)	—	81	—	81
Disposal of subsidiaries	—	12	—	—	18	(34)	(4)	—	(4)
Shares purchased in terms ofthe share incentive scheme	(21)	—	—	—	—	—	(21)	—	(21)
Other movement	—	—	—	—	(3)	—	(3)	—	(3)
Zimbabwe hyperinflationimpact	—	—	—	—	68	1 341	1 409	—	1 409
Total comprehensive income/
(loss)	—	(1 433)	1	—	—	(60)	(1 492)		(27) (1 519)
Dividends declared	—	—	—	—	—	—	—	(7)	(7)
Balance at 31 March 2022	4 575	(5 054)	(3)	—	465	7 367	7 350	22	7 372

(a) Description of other reserves:

The foreign currency translation reserve includes exchange differences arising on monetary items that form part of PPC's net investment in a foreign operation.

Financial assets at fair value through other comprehensive income includes fair value changes and impairment adjustments on fair value through other comprehensive income assets. The cumulative gain or loss is recognised in the statement of profit or loss on derecognition of the financial assets.

Equity compensation reserve represents the increase in equity from the issuance of shares relating to the forfeitable share plan (FSP) and black economic empowerment (BEE) transactions. The post-retirement benefit reserve includes actuarial gains and losses on the post-retirement benefit.

(b) Refer to note 1.6 for the hyperinflation impact on PPC Zimbabwe.

(c) The reduction in the foreign currency translation reserve is due to the devaluation of the ZWL dollar against the ZAR.

(d) Refer to note 1.7 for details regarding the prior period restatement.

		March2023	March2022
	Notes	Rm	Rm
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations	25.1	1 096	1 454
Finance costs paid	22	(160)	(224)
Interest received		14	—
Taxation paid	7.2	(145)	(11)
Cash available from operations		805	1 219
Net operating activities from discontinued operations	8.4	36	(174)
Net cash inflow from operating activities		841	1 045
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in intangible assets	5	(18)	(18)
Investment in property, plant and equipment (adjusted for capital expenditure accruals)	2	(415)	(553)
Proceeds from disposal of property, plant and equipment		5	27
Proceeds from disposal of equity-accounted investments		15	—
Net investing activities from discontinued operations	8.4	(121)	472
Net cash outflow from investing activities		(534)	(72)
Net cash inflow before financing activities		307	973
CASH FLOWS FROM FINANCING ACTIVITIES(a)
Proceeds from sale of PPC Ltd shares held by SPVs		—	81
Purchase of PPC Ltd shares in terms of the share incentive scheme		(36)	(21)
Repayment of interest rate swap liability		—	(12)
Repayment of borrowings	25.2	(446)	(1 970)
Proceeds from borrowings raised	25.2	3	1 000
Repayment of principal portion of lease liabilities	3.4	(29)	(30)
Dividends paid to non-controlling interest		(94)	(7)
Net financing activities from discontinued operations	8.4	(116)	(20)
Net cash outflow from financing activities		(718)	(979)
Net movement in cash and cash equivalents		(411)	(6)
Cash and cash equivalents at the beginning of the year		764	870
Effect of exchange rate movements on cash and cash equivalents – continuing operations		57	(98)
Effect of exchange rate movements on cash and cash equivalents – discontinued operations	8.4	14	(2)
Cash and cash equivalents at the end of the year		424	764
Cash and cash equivalents comprise
Cash and cash equivalents – continuing operations	11	424	577
Cash and cash equivalents – discontinued operations	8.1	—	187
Cash and cash equivalents at the end of the year		424	764

(a) During the period the unfavourable non-cash changes on borrowings amounted to R50 million (March 2022: R68 million favourable) arising from unrealised foreign exchange differences. Refer to note 1.5. for the relevant currency conversions.

SEGMENTAL INFORMATION continued

for the year ended 31 March 2023

SEGMENTAL INFORMATION

for the year ended 31 March 2023

The group discloses its operating segments according to the business units, which are reviewed by the group executive committee, which is also the chief operating decision-maker for the group. The group executive committee includes executive directors. The group executive committee primarily uses a measure of earnings before interest, tax, depreciation and amortisation (EBITDA) to assess the performance of the operating segments. The operating segments are initially identified based on the products produced and sold and then per geographical location. The operating segments are South Africa and Botswana Cement, Zimbabwe, Rwanda, aggregates, ash and readymix and group services.

enhance the financial statements and therefore 31 March 2022 figures have been re-presented in the same

format.

(b) Group services and other comprises Group Shared Services (GSS), PPC International Holdings, BEE entities and

group eliminations.

(c) Refer to note 1.7 for details regarding the prior period restatement.

(d) Segments are disclosed net of inter-segment transactions. (e) Revenue from external customers generated by the group's material foreign operations is as follows:

Botswana R438 million (2022: R471 million)

Rwanda R1 563 million (2022: R1 209 million)

Zimbabwe R1 753 million (2022: R2 172 million)

(f) EBITDA is defined as operating profit before interest, tax, depreciation and amortisation.

(g) EBITDA margin is defined as EBITDA divided by gross revenue (including inter-segment revenue).

(h) EBITDA margin is defined as EBITDA divided by total revenue( excluding inter-segment revenue).

No individual customer comprises more than 10% of the group revenue. (a) The International segment has been disaggregated to present Zimbabwe and Rwanda separately to further Cement Materials business Aggregates, ash and readymix Group services and other(b) Consolidated South Africa and Botswana Zimbabwe(a) Rwanda(a) South Africa March 2023 Rm Restated(c) March 2022 Rm March 2023 Rm March 2022 Rm March 2023 Rm March 2022 Rm March 2023 Rm March 2022 Rm March 2023 Rm March 2022 Rm March 2023 Rm Restated(c) March 2022 Rm Revenue Gross revenue 10 195 10 170 5 782 5 703 1 753 2 172 1 563 1 209 1 097 1 086 — — Inter-segment revenue(d) (293) (288) (273) (288) — — — — (20) — — — Total revenue(e) 9 902 9 882 5 509 5 415 1 753 2 172 1 563 1 209 1 077 1 086 — — Cost of sales (8 343) (8 352) (4 703) (4 469) (1 478) (1 956) (1 112) (894) (1 038) (951) (12) (82) Expected credit losses on financial assets (23) 49 (18) 58 (12) (3) (13) (3) 5 (3) 15 — Admin and other operating expenses (1 082) (1 057) (548) (586) (179) (207) (106) (70) (141) (139) (108) (55) Operating profit before items listed below 454 522 240 418 84 6 332 242 (97) (7) (105) (137) Fair value and foreign exchange gains movements 69 2 (2) 20 35 (17) 14 (9) (2) 1 24 7 Fair value gain on Zimbabwe financial asset — 56 — — — 56 — — — — — — Fair value loss on Zimbabwe blocked funds (32) (18) — — — — — — — — (32) (18) Net monetary loss on hyperinflation in Zimbabwe (131) (108) — — (131) (108) — — — — — — (Impairments)/reversal of impairments (145) (38) (8) (94) — — — (3) (49) 60 (88) (1) Profit/(loss) before finance costs, investment income and equity-accounted investments 215 416 230 344 (12) (63) 346 230 (148) 54 (201) (149) Finance costs (172) (240) (112) (297) (6) (9) (49) (76) (2) (93) (3) 235 Investment income 27 10 12 356 3 4 1 1 — 39 11 (390) Profit/(loss) before equity-accounted earnings 70 186 130 403 (15) (68) 298 155 (150) — (193) (304) Profit from sale of equity-accounted investments 23 — — — — — — — — — 23 — Profit/(loss) before taxation 93 186 130 403 (15) (68) 298 155 (150) — (170) (304) Taxation (242) (207) (4) (121) (137) (25) (61) (46) 11 (11) (51) (4) Profit/(loss) for the year from continuing operations (149) (21) 126 282 (152) (93) 237 109 (139) (11) (221) (308) Profit/(loss) for the year from discontinued operations (425) (56) — 35 — — — — — (11) (425) (80) Profit/(loss) for the year (574) (77) 126 317 (152) (93) 237 109 (139) (22) (646) (388) Attributable to: Shareholders of PPC Ltd – continuing operations (250) (71) 126 282 (152) (93) 136 59 (139) (11) (221) (308) Shareholders of PPC Ltd – discontinued operations (417) 11 — 35 — — — — — (11) (417) (13) Non-controlling interests 93 (17) — — — — 101 50 — — (8) (67) (574) (77) 126 317 (152) (93) 237 109 (139) (22) (646) (388) Basic EPS – continuing operations cents per share (16) (5) 8 18 (10) (6) 9 4 (9) (1) (14) (20) Basic EPS – discontinued operations cents per share (27) 1 — 2 — — — — (1) (27) — Headline EPS – continuing operations cents per share (8) (3) 9 22 (10) (6) 11 4 (7) (4) (11) (19) Headline EPS – discontinued operations cents per share (1) (10) — — — — — — — — (1) (10) Depreciation and amortisation 903 971 420 407 282 386 115 99 48 48 38 31 EBITDA(f) 1 358 1 493 674 825 365 393 447 341 (65) 41 (63) (108) EBITDA margin (%)(g) N/A N/A 11,7 14,5 20,8 18,1 28,6 28,2 (5,9) 3,8 — — EBITDA margin (%)(h) 13,7 15,1 12,2 15,2 20,8 18,1 28,6 28,2 (6,0) 3,8 — — Assets Non-current assets (excluding equity-accounted investments) 7 720 9 698 3 894 4 197 2 181 3 895 1 169 1 088 233 298 243 220 Assets held for sale and held by disposal groups 8 2 919 — — — — — — 8 — — 2 919 Current assets 2 759 2 711 1 435 1 270 504 637 510 455 212 252 98 97 Total assets 10 487 15 328 5 329 5 467 2 685 4 532 1 679 1 543 453 550 341 3 236 Investments in property, plant and equipment and intangibles (refer to notes 2 and 5) 437 568 217 265 117 181 52 65 38 41 13 16 Liabilities Non-current liabilities 2 420 3 053 1 592 1 401 493 179 173 250 20 231 142 992 Liabilities associated with assets held for sale and disposal groups — 3 122 — — — — — — — — — 3 122 Current liabilities 1 725 1 781 861 1 053 294 273 358 284 164 211 48 (40) Total liabilities 4 145 7 956 2 453 2 454 787 452 531 534 184 442 190 4 074

Capital commitments (refer to note 26) 227 111 65 47 92 48 63 13 4 3 3 —

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

for the year ended 31 March 2023

1. BASIS OF PREPARATION

The consolidated financial statements of PPC Ltd group comprise the company and its subsidiaries and the group's interest in associates (together referred to as the group and individually as group entities). The consolidated financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (IASB), and Interpretations issued by the IFRS Interpretations Committee (IFRIC) and effective for the group at 31 March 2023 and comply with the SAICA Financial Reporting Guides, as issued by the Accounting Practices Committee (APC) and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council (FRSC), the JSE Listings Requirements and the requirements of the Companies Act. The consolidated annual financial statements have been prepared using the historical cost convention except for certain financial instruments which are stated at fair value, the impact of inflation as a result of hyperinflationary economies, and assets held for sale which are measured at fair value less costs to sell.

These group consolidated financial statements have been prepared under the supervision of B Berlin CA(SA), CFO, and were approved by the board on Sunday, 25 June 2023. The directors take full responsibility for the preparation of these consolidated annual financial statements.

The accounting policies are consistent with the prior year, except where the group has adopted new or revised accounting standards, amendments and interpretations of those standards, which became effective during the year under review.

The group adopted the following standards during the year:

Standard, amendment or interpretation	Impact on the financial statements
IAS 16 – Property, Plant and Equipment – proceeds before intended use	No significant impact on the group financial statements
IAS 37 – Provisions, Contingent Liabilities and Contingent Assets –onerous contracts – cost of fulfilling a contract	No significant impact on the group financial statements
IFRS 1 – First-time Adoption of International Financial ReportingStandards – annual improvements to IFRS 2018 – 2020	No significant impact on the group financial statements
IFRS 3 – Business Combinations – reference to the Conceptual Framework	No significant impact on the group financial statements

All monetary information and figures presented in these financial statements are stated in rand, unless otherwise indicated.

1.1 BASIS OF CONSOLIDATION

The group consolidates all of its subsidiaries. Refer to subsidiaries and non-controlling interests (note 34) for details about the group subsidiaries.

Subsidiaries are all entities over which the group has control. The group controls an entity where the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group.

All subsidiaries, with the exception of CIMERWA, have the same financial year-end as the company. The financial year-end of CIMERWA is 30 September. For the purpose of preparing these consolidated financial statements, an external audit has been performed on the financial results of this entity for the year ended 31 March 2023.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss, statement of other comprehensive income, statement of changes in equity and statement of financial position, respectively. Noncontrolling interest comprehensive income or loss is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Associates are all entities over which the group has significant influence but not control or joint control. This is generally the case where the group holds between 20% and 50% of the voting rights, except where management exercises judgement to recognise an investment in associate when the shareholding is less than 20% or greater than 50%. Investments in associates are accounted for using the equity method of accounting (refer to note 31), after initially being recognised at cost.

1.2 ACCOUNTING POLICIES

All accounting policies applied in the preparation of these financial statements are in compliance with IFRS.

1. BASIS OF PREPARATION continued

1.3 SIGNIFICANT JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTY The preparation of financial statements in conformity with IFRS requires management to make estimates, assumptions and differ from these estimates.

judgements that affect reported amounts and related disclosures, and therefore actual results, when realised in the future, could

The estimates and underlying assumptions are reviewed on an ongoing basis.

Judgements made by management in applying the accounting policies that could have a significant effect on the amounts recognised in the financial statements are disclosed in the respective notes.

The following are the critical judgments and sources of estimation uncertainty that the directors have made in the process of applying the group accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Significant judgements made by management

Property, plant and equipment (note 2) Costs to be capitalised to a project (including exploration evaluation) Impairment assessments Nil book value assets

Goodwill (note 4) Impairment assessment

Impairments (note 21) CGU determination

Investment in Zimbabwe blocked funds and financial assets (note 6) Recoverability and valuation of the asset

Deferred taxation assets (note 7) Recoverability of the deferred taxation assets arising from taxation losses

Equity-accounted investments (notes 20 and 31) PPC Barnet DRC loss of control Classification of PPC Barnet DRC as an equity-accounted investment

Hyperinflation in PPC Zimbabwe (note 1.6) The use of the ZWL dollar depreciation against the United States dollar during February 2023 and March 2023 as a proxy for the ZWL consumer price index

Sources of estimation uncertainty Property, plant and equipment (note 2) Decommissioning provisions Useful lives and residual values

Provisions (note 13) Calculation of the decommissioning and rehabilitation obligations

Financial assets and other non-current assets (note 6) Recoverability and valuation of financial assets

Other current liabilities (note 15) Put option liability valuation

Trade and other receivables (note 10) Expected credit losses on trade and other receivables

Inventories (note 9) Provision for obsolete inventory

Other intangible assets (note 5) Useful lives

Share-based payments (note 18) Fair value of cash and equity-settled instruments

Equity-accounted investments (note 31) Valuation of PPC Barnet DRC as an equity-accounted investment

Hyperinflation in PPC Zimbabwe (note 1.6) Gain or loss on the net monetary position

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

1. BASIS OF PREPARATION continued

1.4 GOING CONCERN

The directors have considered whether the group can continue as a going concern in the foreseeable future and concluded that it can, taking into account the considerations mentioned in note 36. On that basis, these consolidated annual financial statements have been prepared on the going concern basis.

Refer to note 36 for the going concern assessment.

1.5 FOREIGN CURRENCY CONVERSION GUIDE

Functional and presentation currency

Items included in the financial reports of each entity in the group are measured using the entity's functional currency. The consolidated financial statements are presented in South African rand, which is the presentation currency of the group. An entity may have a monetary item that is receivable from a foreign operation. An item for which settlement is neither planned nor likely to occur in the foreseeable future is, in substance, a part of the entity's net investment in that foreign operation. On consolidation, exchange differences arising from the translation of the net investment in foreign operations are taken to other comprehensive income and accumulated in the foreign currency translation reserve.

Translation of foreign operations

The statement of profit or loss and other comprehensive income, cash flows and financial position of group entities, which are not accounted for as entities operating in hyperinflationary economies and that have a functional currency different from the presentation currency of the group, are translated into the presentation currency as follows:

• Assets and liabilities, including goodwill and fair value adjustments arising on acquisition, are translated at rates of exchange ruling at the reporting date
• Specific transactions in equity are translated at rates of exchange ruling at the transaction dates
• Income and expenditure and cash flow items are translated at average exchange rates for the period
• Foreign exchange translation differences are recognised as other comprehensive income and accumulated in the foreign currency translation reserve, except to the extent the difference is allocated to non-controlling interests

The statement of profit or loss and other comprehensive income, cash flows and financial position of the group entities which are accounted for as entities operating in hyperinflationary economies and that have functional currencies different from the presentation currency of the group are translated into the presentation currency of its immediate parent at rates of exchange ruling at the reporting date. As the presentation currency of the group is that of a non-hyperinflationary economy, comparative amounts are not adjusted for changes in the price level or exchange rates in the current financial year.

Exchange rates used to translate foreign operations relative to the South African rand.

	Average rate		Closing rate
	2023	2022	2023	2022
Botswana pula	1,337	1,326	1,358	1,268
US dollar	17,069	14,938	17,800	14,478
Rwandan franc	0,016	0,015	0,016	0,014
Mozambican metical	0,268	0,238	0,282	0,227
Zimbabwean dollar	0,019	0,102	0,019	0,102

1. BASIS OF PREPARATION continued

1.6 IAS 29 – FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMIES On 11 October 2019, the Public Accountants and Auditors Board of Zimbabwe classified Zimbabwe as a hyperinflationary operating in Zimbabwe with financial periods ended on or after 1 July 2019.

economy in accordance with the provisions of IAS 29 – Financial Reporting in Hyperinflationary Economies, applicable to entities

The PPC group concurred with this classification and applied hyperinflationary accounting for the financial years ended 31 March 2020, 2021 and 2022.

The economy in Zimbabwe remained hyperinflationary during the 2023 financial year with year-on-year inflation reaching 239% as at 31 March 2023 (31 March 2022: 73%). The general price index in the current year was 16 133 (2022: 4 766).

Application of hyperinflationary accounting

The results of PPC Zimbabwe's operations with a functional currency of ZWL dollar have been prepared in accordance with IAS 29 – Financial Reporting in Hyperinflationary Economies as if the economy had been hyperinflationary from 1 April 2019.

Hyperinflationary accounting requires transactions and balances to be stated in terms of the measuring unit current at the end of the reporting period in order to account for the effect of loss of purchasing power during the period. The group uses the ZWL consumer price index (ZWL CPI) as the general price index to restate amounts as ZWL CPI provides an official observable indication of the change in the price of goods and services.

The Reserve Bank of Zimbabwe (RBZ) and Zimbabwe Statistics (ZIMSTAT) ceased publishing the ZWL CPI in January 2023. In terms of IAS 29, where a general price index is not available, reporting entities may use an estimate based, for example, on the movements in the exchange rate between the functional currency and a stable foreign currency. Management exercised its judgement to use the ZWL dollar depreciation against the United States dollar in February 2023 and March 2023 as a proxy for the ZWL CPI for these months (refer to note 32 for detailed disclosure). The Institute of Chartered Accountants of Zimbabwe (ICAZ) issued guidance recommending the use of the total consumption poverty line (TCPL). Management acknowledges the recommendation and continues to monitor and understand the data on which the index is derived from and the viability of using this index in future. Management will continue to monitor the developments relating to the index.

The carrying amounts of non-monetary assets and liabilities carried at historical cost have been restated to reflect the change in the general price index from 1 April 2019 (date of application of IAS 29 – Financial Reporting in Hyperinflationary Economies) to the end of the reporting period. An impairment loss is recognised in profit or loss if the remeasured amount of a non-monetary item exceeds its estimated recoverable amount. No adjustment has been made for those non-monetary assets and liabilities carried at fair value. Gains or losses on the net monetary position have been recognised in the statement of profit or loss. All items recognised in the income statement are restated by applying the change in the general price index from the dates when the items of income and expenses were initially earned or incurred, unless they relate to items already accounted for at fair value, with the corresponding adjustment presented in the statement of profit or loss. All components of equity are restated by applying a general price index from the beginning of the period or the date of contribution, if later. All items in the statement of cash flows are expressed in terms of the general price index at the end of the reporting period.

The economy of Zimbabwe was assessed to be hyperinflationary effective 1 July 2019. IAS 29 – Financial Reporting in Hyperinflationary Economies states that hyperinflation is applicable for an entity from the beginning of the reporting period in which it identifies hyperinflation. PPC group therefore adopted hyperinflation accounting from 1 April 2019. PPC group did not restate the prior year results as PPC reports in a stable currency. PPC Zimbabwe's hyperinflated results were converted to rand at the closing rate on 31 March 2023.

During the current year, the impact of IAS 29 – Financial Reporting in Hyperinflationary Economies resulted in an uplift of PPC Zimbabwe's net asset value and a loss for the year of R1 640 million (2022: R4 963 million) and R342 million (2022: R335 million), respectively. The results, net assets and cash flows were translated from ZWL dollar to ZAR at a closing rate of ZWL1 to ZAR0,019 (2022: ZAR0,102).

The gain or loss on the monetary position is calculated as the difference resulting from the restatement of non-monetary assets, equity and items in the statement of profit or loss and other comprehensive income and adjustment of index linked assets and liabilities.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

1. BASIS OF PREPARATION continued

1.6 IAS 29 – FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMIES CONTINUED Application of hyperinflationary accounting continued

The estimated general price index used is as follows:

Date	Base year	General price index	Inflation rate
3/31/2023	2019	16 133,1	238,5
Hyperinflation impact on group results	31 March2023Including hyperinflationRm	31 March2023HyperinflationadjustmentRm	31 March2023Excluding hyperinflationRm
Statement of profit or loss
Revenue	9 902	395	9 507
EBITDA	1 358	103	1 255
Operating profit/(loss)	454	(166)	620
Profit for the year from continuing operations	(149)	(342)	193
EPS (cents)
Basic - continuing operations	(16)	(22)	6
Diluted - continuing operations	(16)	(22)	6
Statement of financial position
Property, plant and equipment	7 331	1 947	5 384
Right-of-use assets	68	1	67
Other intangible assets	85	5	80
Inventories	1 287	53	1 234
Trade and other receivables	995	7	988
Retained profit	7 999	7 510	489
Total comprehensive loss	(667)	(342)	(325)
Disposal of subsidiaries	(24)	—	(24)
Share incentive scheme forfeited	—	—	—
Opening balances	8 690	7 852	838
Other reserves	(6 818)	(5 870)	(948)
Equity compensation reserve	569	429	140
Post-retirement benefit	5	—	5
Financial assets at fair value through othercomprehensive income	(4)	—	(4)
Foreign currency translation reserve (FCTR)	(7 388)	(6 299)	(1 089)
Long-term provisions	187	1	186
Short-term provisions	15	—	15
Deferred taxation liabilities	1 338	413	925

1. BASIS OF PREPARATION continued

1.7 PRIOR PERIOD RESTATEMENT

On 31 March 2021, PPC Ltd entered into a binding settlement agreement with PPC Barnet's lenders terminating the lenders' right of recourse to PPC Ltd. Simultaneously, PPC Ltd and the lenders entered into a non-binding term sheet to restructure the debt in PPC Barnet and to reorganise the governance structures of PPC Barnet ("the Restructure"). On implementation of the Restructure, PPC Ltd expected to lose control of PPC Barnet, and therefore the Restructure was a deemed disposal within the scope of IFRS 5 – Non-Current Assets Held for Sale and Discontinued Operations (IFRS 5).

On the classification of PPC Barnet as a disposal group, the carrying amount of the disposal group was in excess of the fair value less costs to sell. This historically resulted in a recognition of an impairment loss of R761 million on 31 March 2021 and a subsequent impairment reversal of R215 million on 31 March 2022 in the consolidated annual financial statements.

In performing the impairment assessment of the PPC Barnet disposal group, PPC included the carrying amount of non-controlling interest in PPC Barnet in determining the quantified impairment loss and subsequent impairment reversal on 31 March 2021 and 2022 respectively. However, the non-controlling interest should have been excluded from the impairment assessment and the impact of deconsolidation of the non-controlling interests should only have been considered on 29 April 2022, on loss of control.

The impairment loss which should have been recognised on 31 March 2021 is R86 million and no reversal of impairment should have occurred on 31 March 2022. Refer to note 20 for details on the loss incurred on deconsolidation of PPC Barnet, including the non-controlling interest.

The prior year amounts have consequently been restated and the impact of such restatement is set out below:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS (EXTRACT)

	March2022Rm	March2021Rm
CONSOLIDATED STATEMENT OF PROFIT OR LOSS (EXTRACT)
Profit/(loss) for the year from discontinued operations (previously stated)	158	(1 141)
Correction of error – (impairment reversal)/impairment	(214)	675
Loss for the year from discontinued operations (restated)	(56)	(466)
Attributable to:
Ordinary shareholders of PPC Ltd – discontinued operations (previously stated)	159	(794)
Correction of error – (impairment reversal)/impairment	(148)	466
Ordinary shareholders of PPC Ltd – discontinued operations (restated)	11	(328)
Non-controlling interests (previously stated)	49	(307)
Correction of error – (impairment reversal)/impairment	(66)	209
Non-controlling interests (restated)	(17)	(98)
Earnings/(loss) per share (cents) – group (previously stated) – basic	5	12
Correction of error – (impairment reversal)/impairment	(9)	31
Earnings/(loss) per share (cents) – group (restated) – basic	(4)	43
Earnings/(loss) per share (cents) – group (previously stated) – diluted	5	13
Correction of error – (impairment reversal)/impairment	(9)	30
Earnings/(loss) per share (cents) – group (restated) – diluted	(4)	43
Earnings/(loss) per share (cents) – discontinued operations (previously stated) – basic	10	(53)
Correction of error – (impairment reversal)/impairment	(9)	31
Earnings/(loss) per share (cents) – discontinued operations (restated) – basic	1	(22)
Earnings/(loss) per share (cents) – discontinued operations (previously stated) – diluted	10	(52)
Correction of error – (impairment reversal)/impairment	(9)	30
Earnings/(loss) per share (cents) – discontinued operations (restated) – diluted	1	(22)

2. PROPERTY, PLANT AND EQUIPMENT

Items of property, plant and equipment are initially recognised at cost, and subsequently measured at cost less accumulated depreciation and impairments.

The methods of depreciation, useful lives and residual values are reviewed annually. The following methods and rates were used during the year:

	Method	Rate
Land	Not depreciated
Capital work-in-progress	Not depreciated
Buildings	Straight line	Up to 30 years, limited to life of mine where appropriate
Mineral rights(a)	Straight line	Up to 30 years, limited to life of mine where appropriate
Plant	Straight line	Up to 30 years, limited to life of mine where appropriate
Vehicles	Straight line	Up to 10 years
Furniture and equipment	Straight line	Up to 6 years
Leasehold improvements	Straight line	Depreciated over the lease period or a shorter period if appropriate
Decommissioning asset	Straight line	Up to 30 years, limited to life of mine where appropriate
Capitalised leased plant	Straight line	Depreciated over the lease period or a shorter period if appropriate

(a) Mineral rights include capitalised exploration and evaluation costs.

JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTY Cost capitalisation

Significant judgement is required in identifying costs to be capitalised to a project during the construction, testing and ramp-up phases. Judgement is further required to identify indirect costs that may be capitalised. The group recognises proceeds and costs of items produced before recognition of an item property, plant and equipment in profit or loss.

• The cost of an item of property, plant and equipment is recognised as an asset if it meets the following requirements:
• It is probable that future economic benefits associated with the item will flow to the entity
• The cost of the item can be measured reliably
• The cost of an item of property, plant and equipment comprises:
• Purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates
• manner intended by management
• purposes other than to produce inventories during that year

• Any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the

• The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for

Exploration and evaluation costs

The group capitalises all exploration and evaluation costs that meet the capitalisation criteria. In evaluating if costs incurred meet the criteria to be capitalised, sources of information are used depending on the level of exploration undertaken and the technical feasibility and commercial viability of extracting the mineral resource.

While the criteria for determining capitalisation are based on the probability of future economic benefits, the information that management uses to make that determination depends on the level of exploration. Examples of costs the group capitalises include, but are not limited to, topographical, geological, geochemical and geophysical studies, exploratory drilling and sampling.

Decommissioning assets and provisions

The cost of property, plant and equipment may also include the estimated costs of decommissioning the assets and site rehabilitation costs to the extent that they relate to the asset. Estimating the future costs of these obligations is complex as most of the obligations will only be fulfilled in the future. Furthermore, the resulting provisions and assets are influenced by changing technologies and regulations, life of mine, political, environmental, safety, business and statutory considerations across the various jurisdictions in which PPC operates.

Useful lives and residual values and nil book value assets

In line with the requirements of IAS 16 – Property, Plant and Equipment, it is PPC group's policy that the useful lives of assets be reviewed annually. Any changes in useful lives are accounted for prospectively as a change in estimate in terms of IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors. Useful lives of property, plant and equipment are based on management estimates and take into account historical trends, obsolescence and maintenance strategies.

The current year assessment resulted in an adjustment of useful lives of certain assets to reflect the pattern of consumption of the future economic benefits embodied in the assets. The impact of the change in applying the adjusted useful lives for the year ended 31 March 2023 is a decrease in the depreciation expense of R8 million (2022: R21 million).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

1. BASIS OF PREPARATION continued

1.7 PRIOR PERIOD RESTATEMENT CONTINUED

	March2022Rm	March2021Rm
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EXTRACT)ASSETS
Assets held for sale and held by disposal groups (previously stated)	2 458	2 984
Correction of error – impairment	461	675
Assets held for sale and held by disposal groups (restated)	2 919	3 659
EQUITY AND LIABILITIESCapital and reserves
Retained profit (previously stated)	7 049	5 649
Correction of error – impairment	318	466
Retained profit (restated)	7 367	6 115
Non-controlling interests (previously stated)	(121)	(153)
Correction of error – impairment	143	209
Non-controlling interests (restated)	22	56

2. PROPERTY, PLANT AND EQUIPMENT continued

	Freehold land andbuildingsRm	Mineralrights(a)Rm	DecommissioningassetsRm	Plant, vehicles,furniture andequipmentRm	TotalRm
March 2023
Cost	2 646	164	93	13 157	16 060
Accumulated depreciation and impairments	(951)	(100)	(27)	(7 651)	(8 729)
	1 695	64	66	5 506	7 331
Movements during the year
Net carrying value at the beginning of the year	2 134	101	239	6 781	9 255
Additions	18	2	1	399	420
To enhance existing operations	14	1	1	356	372
To expand operations	4	1	—	43	48
Depreciation	(99)	(7)	(16)	(717)	(839)
Disposals	—	(1)	—	(14)	(15)
Impairments (refer to note 21)	(9)	(20)	—	(55)	(84)
Other movements(b)	(59)	—	60	(7)	(6)
Hyperinflation impact(c)	566	—	(22)	990	1 534
Transfer to non-current assets held for sale (refer
to note 8)	—	—	—	(8)	(8)
Translation differences	(856)	(11)	(196)	(1 863)	(2 926)
Net carrying value at the end of the year	1 695	64	66	5 506	7 331

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

2. PROPERTY, PLANT AND EQUIPMENT continued

Freehold and March 2022 Movements during the year

	leasehold			Plant, vehicles,
	land and	Mineral	Decommissioning	furniture and
	buildings	rights	assets	equipment	Total
	Rm	Rm	Rm	Rm	Rm
March 2022
Cost	2 964	208	338	14 576	18 086
Accumulated depreciation and impairments	(830)	(107)	(99)	(7 795)	(8 831)
	2 134	101	239	6 781	9 255
Movements during the year
Net carrying value at the beginning of the year	2 069	80	262	7 211	9 622
Additions	26	4	3	517	550
To enhance existing operations	18	1	3	508	530
To expand operations	8	3	—	9	20
Depreciation	(106)	(6)	(8)	(786)	(906)
Disposals	(4)	—	—	(18)	(22)
Impairments (refer to note 21)	(8)	—	(1)	(3)	(12)
Other movements	—	39	(2)	(39)	(2)
Hyperinflation impact	566	—	99	1 070	1 735
Translation differences	(409)	(16)	(114)	(1 171)	(1 710)
Net carrying value at the end of the year	2 134	101	239	6 781	9 255

Translation differences comprise:

	Cost	Accumulateddepreciation	Net carryingvalue
	Rm	Rm	Rm
Translation differences comprise:
Botswana	(6)	5	(1)
Rwanda	(83)	35	(48)
Zimbabwe	(2 497)	836	(1 661)
Total	(2 586)	876	(1 710)
		March2023Rm	March2022Rm
Carrying amount of assets pledged as security:
PPC Cement SA		2 970	3 156
Rwanda		1 160	1 086
Total		4 130	4 242

Carrying amount of assets pledged as security:

JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTY

The value-in-use amounts were determined using the discount rates and assumptions detailed in note 21.

Impairments and reversals have been recognised in the current year, refer to note 21 for the details.

	March2023Rm	March2022Rm
Cash flow from investment in property, plant and equipment
Acquisition of property, plant and equipment	420	550
Movement in capital expenditure payables (refer to note 16)	(5)	3
	415	553

	CostRm	AccumulateddepreciationRm	Net carryingvalueRm
Translation differences comprise:
Botswana	4	(3)	1
Rwanda	256	(104)	152
Zimbabwe(d)	(4 972)	1 893	(3 079)
Total	(4 712)	1 786	(2 926)

(a) Mineral rights include capitalised exploration and evaluation costs. Management considers mineral rights as a separate class of property, plant and equipment. Mineral rights were disaggregated from the freehold land and buildings category in the current and comparative years. There was no change to the depreciation policy as a result of this disaggregation

of categories.

(b) Other movements includes reclassification between classes and transfer from work in progress to intangible assets. (c) Hyperinflation resulted in a R1 947 million net uplift of the carrying amount of property, plant and equipment, which comprise:

	Rm
Hyperinflation impact included in opening balance	3 535
Additions	12
Disposals	(1)
Depreciation	(266)
Hyperinflation impact on current year	1 534
Translation differences	(2 867)
Net impact	1 947

(d) As a result of a significant devaluation of the ZWL dollar against the ZAR, from March 2022 to March 2023, of ZAR:ZWL 0,102 to 0,019, the group recognised a R3 billion decrease in the net carrying value of property, plant and equipment which is included in translation differences.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

3. LEASES

IN THE CAPACITY OF A LESSEE

This note provides information about leases where the group is a lessee only as it is not a lessor to any third party.

3.1 RIGHT-OF-USE ASSETS

The group recognises a right-of-use asset and a corresponding lease liability at the lease commencement date. The right-of-use asset is initially measured at cost (which is equal to the lease liability adjusted for previously recognised prepaid or accrued lease payments relating to that lease) and increased with initial direct costs incurred and the amount of any provision recognised where the group is contractually required to dismantle, remove or restore the leased asset. After the commencement date, the right-of-use assets are measured at cost less any accumulated depreciation and any accumulated impairment losses and adjusted for any remeasurement of the lease liability. Right-of-use assets are assessed for impairment in accordance with the requirements of IAS 36 – Impairment of Assets. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

Depreciation is calculated using the straight-line method over the estimated useful lives of the right-of-use asset or the lease term. The predominant estimated useful lives are as follows:

Description	Term in years
Property and plant	2 – 5
Vehicles	2 – 3
Land	2 – 5
Buildings	2 – 5

The lease term determined by the group comprises:

• Non-cancellable period of lease contracts

• Periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option

• Periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option

3. LEASES continued

3.1 RIGHT-OF-USE ASSETS CONTINUED

	Property andplantRm	VehiclesRm	LandRm	BuildingsRm	TotalRm
March 2023
Cost	48	31	13	51	143
Accumulated depreciation and impairments	(18)	(19)	(9)	(29)	(75)
	30	12	4	22	68
Movements during the year
Net carrying value at the beginning
of the year	25	15	8	21	69
Additions	14	5	5	13	37
Depreciation	(10)	(7)	(5)	(13)	(35)
Derecognition	—	(2)	(3)	(1)	(6)
Other movements (a)	1	1	(1)	5	6
Translation differences	—	—	—	(3)	(3)
Net carrying value at the end of the year	30	12	4	22	68
	Property andplantRm	VehiclesRm	LandRm	BuildingsRm	TotalRm
March 2022
CostAccumulated depreciation and impairments	35(10)	23(8)	25(17)	42(21)	125(56)
	25	15	8	21	69
Movements during the year
Net carrying value at the beginning
of the year	14	16	4	34	68
Additions	28	3	3	3	37
Depreciation	(10)	(6)	(5)	(13)	(34)
Derecognition	(8)	1	3	(1)	(5)
Reversal of Impairments (refer to note 21)	1	1	1	—	3
Other movements	—	—	2	—	2
Translation differences	—	—	—	(2)	(2)
Net carrying value at the end of the year	25	15	8	21	69

(a) Includes the impact of hyperinflation of R2 million loss (2022: R2 million).

The group's leases consist mainly of leasing of buildings, property and plant, and vehicles. In certain lease agreements of machinery, equipment and vehicles, variable lease payments are included based on operating hours used, kilometres travelled or output. These leases provide greater flexibility in terms of usage, such as for certain types of trucks and vehicles where operating levels depend on production capacity and demand and are recognised as expenses when incurred.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

3. LEASES continued

3.2 LEASE LIABILITIES

The lease liability is initially measured at the present value of the remaining lease payments on the commencement date, discounted using the incremental borrowing rate. The lease liability is subsequently increased by the finance cost on the lease liability and decreased by lease payments made. The lease liability is remeasured when there is a change in the future lease payments arising from a change in an index or rate. The group has elected to split lease and non-lease components for leases per class.

The assessment of the lease term is reviewed if a significant event or a significant change in circumstances occurs that is within the control of the lessee.

Discount rate

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the group, the lessee's incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. The lease liabilities were measured at the present value of the remaining lease payments, discounted using the incremental borrowing rate of the group entity that is the counterparty to the lease contract, at inception of the lease. This incremental borrowing rate was derived from the external third-party borrowing rate of the particular group entity.

	March2023Rm	March2022Rm
Net carrying value at the beginning of the year	59	60
New leases capitalised during the year	37	37
Modification of existing leases – gain	2	—
Disposals	(2)	(7)
Lease payments made during the year	(35)	(35)
Finance costs	6
Translation differences	3	(1)
Net carrying value at the end of the year	70	59
Non-current lease liabilities	42	38
Current lease liabilities	28	21
	70	59
Maturity analysis – undiscounted contractual cash flows
Less than one year	35	33
One to five years	47	43
More than five years	1	—
	83	76
Breakdown of lease payments made during the year
Fixed payments	27	31
Variable payments	8
Total payments	35	35
AMOUNTS RECOGNISED IN STATEMENT OF PROFIT OR LOSS
Depreciation on right-of-use asset	35	34
Interest expense on lease liabilities	6
Expenses relating to short-term leases(a)	13
Modification of existing leases – gain	2	—
Right-of-use asset impairment reversal	—	(2)
Net effect	56	40

(a) These expenses relate to rental expenses that do not meet the IFRS 16 recognition criteria.

3.4 AMOUNTS RECOGNISED IN STATEMENT OF CASH FLOW

The total cash outflow for leases accounted for in terms of IFRS 16 in 2023 was R35 million (2022: R35 million), including R6 million (2022: R5 million) for finance costs and principal payments of R29 million (2022: R30 million). Included in cash flows from operating activities is R13 million (2022: R3 million) relating to short-term lease payments, payments for leases of low-value assets, and variable lease payments are not included in the measurement of the lease liability.

4. GOODWILL

Movements of goodwill

	March2023Rm	March2022Rm
Cost	204	321
Accumulated impairments	(204)	(284)
	—	37
Movements of goodwill
Net carrying value at the beginning of the year	37	38
Impairment (refer to note 21)	(42)	—
Translation differences	5	(1)
Net carrying value at end of the year	—	37
Goodwill, net of impairments, is allocated to the following CGUs:
Rwanda	—	37
	—	37

JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTY

Impairment is determined by assessing the recoverable amount of the CGU to which the goodwill is allocated. The recoverable amounts of the CGUs are assessed by determining the value-in-use of the CGU. These assessments use cash flow projections based on the most recent financial budgets approved by the board for the next five years. Cash flows beyond the five-year period are extrapolated using the growth rates as noted in note 21.

RWANDA

The recoverable amount for this CGU of R1 442 million (2022: R3 071 million) was determined based on a value-in-use assessment over the life-of-mine of 15 years, using cash flow projections based on financial forecasts approved by the board for a five-year period and reasonable assumptions thereafter. In the prior year, the five-year board-approved cash flows were extrapolated using a terminal growth rate of 5%. Refer note 21 for the increase in the discount rate in the current year. The recoverable amount of the CGU including goodwill and assets recognised at group amounts to R1 526 million, resulting in an impairment loss of R84 million, of which R42 million is allocated to goodwill.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

5. OTHER INTANGIBLE ASSETS

	Enterpriseresourceplanning (ERP)developmentand othersoftwareRm	Brand,trademarksand customerrelationshipsRm	TotalRm
2023
Cost	413	528	941
Accumulated amortisation and impairments	(328)	(528)	(856)
	85	—	85
Movements during the year
Net carrying value at the beginning of the year	97	16	113
Additions	18	—	18
Disposals	(2)		(2)
Amortisation	(22)	(7)	(29)
Impairments (refer to note 21)	(5)	(14)	(19)
Hyperinflation impact(a)	4	—	4
Other movements(b)	2	—	2
Translation differences	(7)	5	(2)
Net carrying value at the end of the year	85	—	85
2022
Cost	440	515	955
Accumulated amortisation and impairments	(343)	(499)	(842)
	97	16	113
Movements during the year
Net carrying value at the beginning of the year	87	62	149
Additions	18	—	18
Amortisation	(13)	(15)	(28)
Hyperinflation impact	4	—	4
Impairments (refer to note 21)	—	(29)	(29)
Other movements	5	—	5
Translation differences	(4)	(2)	(6)
Net carrying value at the end of the year	97	16	113
(a) Hyperinflation resulted in a R5 million uplift of the carrying amount of other intangible assets, which comprise:			Rm
Hyperinflation impact included in opening balance			9
Amortisation			(2)
Additions			1
Hyperinflation impact on current year			4
Translation differences			(7)
Net impact			5
(b) Other movements relates to the transfer from PPE to intangible assets.

Useful lives	Method	Rate
Enterprise resource planning development andother software	Straight line	2 to 10 years
Brand and trademarks	Straight line	2 to 15 years
Customer relationships	Straight line	2 to 5 years

JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTY BRAND, TRADEMARKS AND CUSTOMER RELATIONSHIPS

Included in brand, trademarks and customer relationships are brands and trademarks of nil (2022: R36 million).

The group has conducted an impairment assessment on all brands, trademarks and customer relationships as part of its annual impairment assessment, refer to note 21.

The group does not have any indefinite useful life intangible assets, other than goodwill, which has been fully impaired in the current financial year (refer to note 4).

6. OTHER NON-CURRENT ASSETS

	Notes	March2023Rm	March2022Rm
6.1	FINANCIAL ASSETS
	Non-current financial assets at fair value through profit or lossUnlisted collective investment6.1.1		144
	Cell captive investment6.1.2	14433	19
	Total non-current financial assets at fair value through profit or loss	177	163
	Non-current financial assets at fair value through other comprehensive income
	Investment in Old Mutual shares on the Zimbabwe Stock Exchange6.1.3	2	3
	MRG investment6.1.4	6	—
	Total non-current financial assets at fair value through other comprehensive income	8	3
	Total financial assets	185	166
6.2	OTHER NON-CURRENT ASSETS
	Zimbabwe blocked funds6.2.1	—	32
	6.2.2Loan receivable	24	—
	Total other non-current assets	24	32
	JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTYDue to the longer-term nature of the non-current assets, judgement is required in determining the recoverability and valuation of thevarious non-current assets held by the group.6.1.1 Unlisted collective investmentThis comprises an investment by the PPC Environmental Trust in an Old Mutual portfolio, with the fair value being calculated using theruling prices on 31 March 2023. During the year, there were no funds reinvested into the unit trusts (2022: nil). The current funds areheld to fund PPC's South African environmental obligations. Cash held by the PPC Environmental Trust is restricted cash. Refer to note 11.
	The financial asset is classified at fair value through profit or loss.
	6.1.2 Cell captive investmentPPC invested in preference shares in Centriq Insurance Company Ltd, a licensed cell captive insurer. The preference shares aregoverned by a preference share agreement (also called a subscription agreement), which confers certain rights and obligations on theshareholder and the insurer. Some of the main features include the fact that the shareholder (cell owner) gets the right to share in theprofits of a specified book of insurance policies. If there are losses on the book, the cell owner has the obligation to recapitalise the cell.Capitalisation and re-capitalisation of the cell is by way of a cash injection into the insurer, who allocates the capital to the cell.
	The group has determined that it does not have control over its insurance cell captive, as cell captive structures in South Africa do notsatisfy the consolidation criteria of IFRS 10 – Consolidated Financial Statements, due to the fact that a breach of the cell's ring-fencednature is legally and practically possible, even though it is highly unlikely. The cell captive has therefore not been consolidated.
	The investment is initially measured at cost and subsequently at fair value, with changes recognised in profit or loss. The valuation of thecell captive is determined using the net asset value at each reporting date. The cell captive also recognises technical provisions of grossunearned reserve and the IBNR (incurred not yet reported) provision as required for insurance companies.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

6. OTHER NON-CURRENT ASSETS continued

6.1.3 Investment in Old Mutual shares on the Zimbabwe Stock Exchange

This investment relates to the investment in 200 000 Old Mutual shares on the Zimbabwe Stock Exchange. The market value as at 31 March 2023 is R2 million (2022: R3 million). As a result of the uncertainty around the expatriation of funds from Zimbabwe, the investment has been classified as non-current.

The shares remain suspended on the Zimbabwe Stock Exchange. The Securities and Exchange Commission of Zimbabwe issued directive SS28/04/2021 for all dual–listed counters that are suspended to be valued using the JSE price.

6.1.4 Investment in MRG

Previously, PPC had standalone insurance cover through a broker. During the current year, PPC entered into a new insurance structure through acquiring a 6,75% shareholding in two entities within the Mutual Risk Group (MRG). This arrangement allows the group to participate with other independent companies in a mutual fund that forms the basis of the insurance agreement. The equity investment is not held for trading and the group has irrevocably elected at initial recognition to recognise it at fair value through other comprehensive income. The investment is strategic and the group considers this classification to be more relevant. The valuation of the investment is determined using the net asset value at each reporting date, determined from the management accounts received from the investee.

6.2.1 Zimbabwe blocked funds

No formal confirmation has been received from the Reserve Bank of Zimbabwe (RBZ) regarding repayment of this amount and as such the investment is classified as non-current. The investment is a statutory receivable and, as no repayment terms have been agreed, it is not a financial asset as defined. It is, however, PPC Ltd's policy to value the Zimbabwe blocked funds as if it was a financial asset, and therefore it is valued at fair value through profit or loss.

Hyperinflation, the challenging general economic environment and the unavailability of foreign currency in Zimbabwe were considered in the determination of an appropriate fair value adjustment to be applied to the blocked funds. Management assessed that there was an increase in the credit risk of the RBZ, resultant in the application of a fair value credit risk adjustment of 100% (2022: 90%), which resulted in a cumulative fair value adjustment of R399 million as at 31 March 2023 (2022: R292 million).

The net fair value loss on the Zimbabwe blocked funds of R32 million (2022: R18 million) comprises an increase of the intrinsic value of R75 million (2022: R7 million decrease) and a credit risk fair value loss of R107 million (2022: R11 million).

6.2.2 Loan receivable

The loan is receivable from PPC Barnet and relates to amounts owing by PPC Barnet for historical management fees. There is an agreement with PPC Barnet and its lenders for these fees to be repaid dependent on cash generated. Management exercised judgement in determining that it is unlikely that these fees will be paid in the next 12 months. The loan receivable is initially measured at fair value and subsequently at amortised cost using the effective interest method. During the current year, PPC lost control of PPC Barnet, resulting in the loan not eliminating on consolidation.

7. TAXATION

7.1 INCOME TAX ACCOUNTING POLICY

Current tax

Income tax expense comprises current tax, deferred tax and withholding tax. Income tax expense or credit for the period is tax which is payable on the current period's taxable income based on the income tax rate in each jurisdiction. The tax payable is adjusted for changes in deferred tax assets and liabilities attributable to temporary differences and unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the company and other group entities operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which the applicable tax regulation is subject to interpretation.

Provisions, where appropriate, are established on the basis of amounts expected to be paid to the tax authorities. Income tax for the current and prior periods is recognised as a liability to the extent that it is unpaid. If the amount already paid in respect of current and prior periods exceeds the total amount due for those periods, the excess is recognised as an asset and is reversed when it reduces future tax payments.

Deferred tax

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates and laws that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax liabilities are recognised for all taxable temporary differences.

Deferred tax assets are recognised to the extent it is probable that taxable profits will be available in future periods against which deductible temporary differences and losses can be utilised. The recognition of deferred tax assets is assessed at subsidiary level, taking into account the applicable legal provisions of that jurisdiction.

Current and deferred tax is recognised in profit or loss.

7. TAXATION continued

7.1 INCOME TAX ACCOUNTING POLICY CONTINUED Withholding tax interest and management fees.

Withholding tax is payable at a rate of 5% to 15% on amounts paid to the group entities by certain of their subsidiaries as dividends,

	March2023	March2022
	Rm	Rm
South African normal taxation
Current taxation	39	44
Current year	53	6
Prior years(a)	(14)	38
Deferred taxation	(5)	67
Current year	33	97
Prior years(b)	(38)	2
Change in tax rate	—	(32)
Foreign normal taxation
Current taxation	110	106
Current year	110	106
Deferred taxation	76	(32)
Current year	86	(32)
Prior years	(10)	—
Withholding taxation	22	22
Taxation charge	242	207

South African normal taxation
Foreign normal taxation
(a) Relates to PPC International Holdings and PPC Aggregate Quarries due to an overprovision of current tax in prior years.

(b) Mainly driven by the energy efficiency incentive which was approved subsequent to the FY22 annual financial statements, and a change in the tax base relating to PPE in PPC Cement SA.

Taxation rate reconciliation

		31 March 2023 31 March 2022
	%	%
Taxation rate reconciliation
Effective tax rate	262	111
Prior years' taxation impact	67	(21)
Profit before taxation, excluding prior years' taxation adjustments	329	90
Income taxation effect of:
Foreign taxation rate differential	21	3
Expenditure attributable to non-taxable income	(9)	(7)
Expenditure not deductible in terms of taxation legislation(c)	(49)	(34)
Withholding taxation	(24)	(12)
Fair value adjustments on financial instruments not taxable	1	4
Normalised taxation rate	269	44
Taxation effect of the following transactions
Deferred taxation not raised	(88)	(12)
Change in tax rate	—	17
Impairment of investments	(12)	—
Accounting profit on disposal of investments	7	—
Adjusted taxation rate before Zimbabwe	176	49
Expected credit loss provision on Zimbabwe blocked funds	(9)	(3)
Fair value adjustment on Zimbabwe financial asset	—	8
Tax effect of Zimbabwe hyperinflation	(140)	(26)
South African normal taxation rate	27	28

(c) Disallowed expenses in the jurisdictions in which PPC operates including interest, legal and consulting fees that are capital in nature, fines and penalties, non-deductible IFRS adjustments and limitations on the deductible value of telephone, entertainment and public relations.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

7. TAXATION continued

	March2023Rm	March2022Rm
TAXATION PAID
Net amounts payable/(receivable) at the beginning of the year	18	(85)
Charge per income statement (excluding deferred taxation)	172	172
Impact of foreign rate differences and other non-cash flow movements	(41)	(58)
Net amounts payable at the end of the year	(4)	(18)
	145	11
DEFERRED TAXATION
Net liability at the beginning of the year comprises:	1 628	1 597
Deferred taxation asset	26	24
Deferred taxation liability	1 654	1 621
Income statement charge	120	65
Prior year taxation adjustment	(48)	2
Deferred taxation impact of FCTR on the loan with PPC International Holdings	30	—
Change in tax rate	—	(32)
Effect of hyperinflation accounting on deferred taxation	216	368
Translation differences	(635)	(372)
Net liability at the end of the year comprises:	1 311	1 628
Deferred taxation asset	27	26
Deferred taxation liability	1 338	1 654
Analysis of deferred taxation
Property, plant and equipment	1 326	1 785
Intangible assets	13	24
Financial assets	(5)	(6)
Non-current receivables	154	124
Trade receivables and prepayments	2	(32)
Provisions	(184)	(159)
Reserves	13	(12)
Taxation losses	(8)	(96)
	1 311	1 628

JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTY

Current tax

The group is subject to direct and indirect taxation in a number of jurisdictions. There may be transactions and calculations for which the ultimate tax determination has an element of uncertainty in the ordinary course of business. The group recognises tax liabilities for anticipated tax issues by making use of estimates and by considering whether additional taxes will be payable. Where the final tax determination is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax liabilities in the year in which such determination is made. There are currently no matters that have resulted in an uncertain tax position for the group.

Deferred tax

In terms of the deferred tax assets recognised, the group has made estimates in assessing whether future taxable profits will be available. Future taxable profits are determined based on forecasts, budgets and business plans for individual subsidiaries within the group and the probable reversal of taxable temporary differences in future. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Such reductions are reversed when the probability of future taxable profits improves.

	March	March
	2023	2022
	Rm	Rm
Analysis of the group's deferred tax assets arising from taxation losses
CIMERWA	—	32
PPC Aggregate Quarries	8	—
PPC Cement SA	—	11
PPC Ltd	—	53
	8	96

7. TAXATION continued

7.3 DEFERRED TAXATION CONTINUED Recoverability assessment of CIMERWA deferred tax asset ended 30 September 2022.

The deferred tax asset of R32 million (RWF2 billion) arising from taxation losses was fully utilised by CIMERWA during its financial year

Recent material amendments to legislation in South Africa The current tax expense is based on a corporate tax rate of 27% which came into effect on 1 April 2022. This had no impact on the deferred tax which was recognised at 27% in 2022.

Recoverability assessment of PPC Cement SA deferred tax asset PPC Cement SA fully utilised the tax loss of R40 million (a deferred tax asset of R11 million) in 2023.

The PPC Aggregate Quarries deferred tax asset recoverability was based on applicable South African tax laws and approved business plans. PPC Aggregate Quarries has a tax loss of R30 million. The company has deferred tax temporary differences that will unwind in the foreseeable future and this will result in the utilisation of the deferred tax asset arising from the tax loss. The tax loss is expected to be

Recoverability of PPC Aggregate Quarries deferred tax asset recovered in the normal course of business and therefore the deferred tax asset has been recognised.

Recoverability of PPC Ltd deferred tax asset

The PPC Ltd deferred tax asset recoverability was based on applicable South African tax laws and approved business plans. PPC Ltd currently has an accumulated tax loss of R177 million (2022: R196 million). It is unlikely that the deferred tax temporary differences will unwind in the foreseeable future, which results in uncertainty over the utilisation of the deferred tax asset arising from the tax loss. Therefore the deferred tax asset has been derecognised in the current year.

Other deferred tax assets not recognised

Deferred tax assets have not been recognised for the tax losses in PPC Group Services, Pronto Building Materials and 3Q Mahuma Concrete due to the unlikelihood of these entities being able to generate sufficient taxable income within the foreseeable future.

Uncertain tax positions

The group is involved in direct and indirect tax matters specific to the respective jurisdictions in which the group operates. These matters may not necessarily be resolved in a manner that is favourable to the group. The group currently does not have any tax disputes with tax authorities that would result in an unfavourable outcome, and therefore no provision has been recognised.

8. ASSETS CLASSIFIED AS HELD FOR SALE AND DISPOSAL GROUPS

	31 March2023	Restated(a)31 March2022	Restated(a)31 March2021Rm
8.1	—	2 919	3 659
8.2	—	(3 122)	(3 299)
	8	—	—
	8	(203)	360
	Notes	Rm	Rm

(a) A prior period restatement was recognised on the previously recognised impairment, refer to note 1.7.

PPC BARNET DRC HOLDINGS AND ITS DRC SUBSIDIARIES (PPC BARNET)

All the conditions precedent to the binding long-form agreements for the restructure of the senior lender debt were met on 29 April 2022, from which date PPC lost control of PPC Barnet and hence ceased to consolidate PPC Barnet. Refer to note 20.

READYMIX TRUCKS

PPC's Materials businesses (housed in legal entities PPC Aggregates SA, 3Q Mahuma Concrete and Pronto Building Materials) have been under severe financial pressure as a result of soft markets in which the businesses operate. A decision was taken prior to the yearend to convert certain fixed costs to variable costs by disposing of the owned fleet of trucks/tipper trucks and converting to a "lorryowned-driver" business model. This resulted in the classification of trucks/tipper trucks as non-current assets held for sale in terms of IFRS 5.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

8. ASSETS CLASSIFIED AS HELD FOR SALE AND DISPOSAL GROUPS continued

8.1 ASSETS HELD FOR SALE BY DISPOSAL GROUPS

		PPC Lime
	PPC Barnet –	environment
	DRC(a)	trust	Total
Restated(a) March 2022	Rm	Rm	Rm
Property, plant and equipment	2 093	—	2 093
Right-of-use assets	17	—	17
Other non-current assets	166	25	191
Inventory	319	—	319
Trade and other receivables	112	—	112
Cash and cash other equivalents	187	—	187
Total assets	2 894	25	2 919
LIABILITIES ASSOCIATED WITH ASSETS HELD FOR SALE AND DISPOSAL GROUPS
Provisions	(52)	—	(52)
Lease liabilities	(11)	—	(11)
Other non-current liabilities	(18)	(25)	(43)
Trade and other payables	(591)	—	(591)

Short-term portion of long-term borrowings (2 414) — (2 414) Taxation payable (11) — (11) Total liabilities (3 097) (25) (3 122) Total equity (203) — (203)

8.1 ASSETS HELD FOR SALE BY DISPOSAL GROUPS

	PPC Barnet –		PPC Botswana
	DRC(a)	PPC Lime	Aggregates	Total
Restated(a)March 2021	Rm	Rm	Rm	Rm
Property, plant and equipment	2 124	250	16	2 390
Right-of-use assets	7	5	—	12
Financial assets	—	30	—	30
Other non-current assets	183	—	—	183
Deferred taxation assets	—	—	3	3
Inventory	221	79	27	327
Trade and other receivables	187	89	13	289
Taxation receivable	—	12	—	12
Cash and cash other equivalents	392	2	19	413
Total assets	3 114	467	78	3 659
LIABILITIES ASSOCIATED WITH ASSETS HELD FOR SALE AND DISPOSAL GROUPS
Provisions	(60)	(22)	(14)	(96)
Deferred taxation liabilities	—	(41)		(41)
Lease liabilities	(8)	(6)	(1)	(15)
Other non-current liabilities	(18)	—	—	(18)
Trade and other payables	(544)	(85)	(23)	(652)
Short-term portion of long-term borrowings	(2 482)	—	—	(2 482)
Taxation payable	(2)	7	—	5
Total liabilities	(3 114)	(147)	(38)	(3 299)
Total equity	—	320	40	360

(a) A prior period restatement was recognised on the previously recognised impairment, refer to note 1.7.

8. ASSETS CLASSIFIED AS HELD FOR SALE AND DISPOSAL GROUPS continued

		31 March	Restated(a)31 March
		2023	2022
	Notes	Rm
DISCONTINUED OPERATIONS(b)
Revenue		76	1 318
Cost of sales		(49)	(1 060)
Gross profit		27
Expected credit losses on financial assets		(1)
Administration and other operating expenditure		(14)	(142)
Operating profit/(loss) before items listed below:		12
Fair value and foreign exchange loss		—
(Loss)/profit on disposal of subsidiaries	20	(429)
(Impairment)/impairment reversal		(2)
Profit/(loss) before finance costs, investment income		(419)
Finance costs		(22)	(343)
Investment income		—
Loss before taxation		(441)
Taxation		16
Loss for the year from discontinued operations		(425)
Attributable to:
Shareholders of PPC Ltd		(417)
Non-controlling interests		(8)
		(425)
Profit/(loss) per share (cents)
Basic – discontinued operations		(27)
Diluted – discontinued operations		(27)
CASH FLOWS FROM DISCONTINUED OPERATIONS
Net operating cash flows from discontinued operations		36	(174)
Net investing cash flows from discontinued operations		(121)
Net financing cash flows from discontinued operations		(116)
Effect of exchange rate movements on cash and cash equivalents		14
Net (decrease)/increase in cash and cash equivalents		(187)

September 2021, PPC Lime until 30 September 2021, and PPC Barnet until 31 March 2022.

9. INVENTORIES

Inventories are initially recognised at cost, determined using a weighted average cost formula. Subsequently, inventories are stated at the lower of cost and net realisable value.

	March2023	Rm	March2022Rm
Raw materials		166	139
Work in progress		237	201
Finished goods		454	439
Consumable stores		681	535
Inventory obsolescence		(251)	(229)
	1 287		1 085

JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTY

The provision for obsolete inventory, which is specific to consumables, is calculated on an item-by-item basis with regards to specific circumstances and history of usage, and the methodology is consistent with the prior year. Included in consumable inventory is consumables, spare parts and refractories.

Critical spares are major spare parts, the unavailability of which would result in substantial loss of sales, increased cost of production, or serious adverse environmental consequences. These spares are used only in connection with specific critical plant and equipment as opposed to general use (eg general bearings and tyres), and the spare parts are expected to be used for a period of more than 12 months. Due to its nature, these spare parts are held in inventory until used, when they are reclassified to property, plant and equipment. Critical spares that amounted to R10 million were reclassified from inventory to property, plant and equipment. Notwithstanding the aforesaid, it is group policy to account for all critical spares in excess of R250 000 in property, plant and equipment.

Inventory written down to net realisable value amounted to R20 million (2022: R11 million) during the year.

The cost of inventories recognised as an expense in cost of sales during the year was R5 579 million (2022: R5 489 million).

In the current year, PPC Cement SA had inventory of R764 million (2022: R631 million) that was pledged as security (refer to note 14 for further details on pledged inventory). Inventory includes hyperinflation impact of R53 million (2022: R67 million) arising from PPC Zimbabwe.

10. TRADE AND OTHER RECEIVABLES

Trade receivables comprise receivables that are due from customers, which arise from transactions for the sale of goods in the ordinary course of business. Trade receivables and other financial receivables are primarily accounted for at amortised cost. Receivables for prepayments and VAT are stated at their nominal values.

Trade receivablesLoss allowance (refer to note 28)
Net trade receivablesOther financial receivables
Trade and other financial receivablesPrepaymentsVAT receivable

	March2023Rm	March2022Rm
Trade receivables	849	765
Loss allowance (refer to note 28)	(91)	(79)
Net trade receivables	758	686
Other financial receivables	53	69
Trade and other financial receivables	811	755
Prepayments	130	158
VAT receivable	54	93
	995	1 006

Trade and other financial receivables are due for settlement within the next 12 months and are therefore all classified as current. Trade and other financial receivables are recognised initially at the amount of consideration that is unconditional, unless they contain significant financing components, in which case they are recognised at fair value. They are subsequently measured at amortised cost using the effective interest method, less loss allowances. Details regarding the group's exposure to credit risk and the calculation of expected credit losses are provided in note 28.

Except for the trade receivables of PPC Cement SA of R641 million (2022: R539 million), no receivables have been pledged as security. Refer to note 14.

Due to the short-term nature of current trade and other financial receivables measured at amortised cost, their carrying amount is considered to be the same as their fair value.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

11. CASH AND CASH EQUIVALENTS

Currency analysis	March2023Rm	March2022Rm
Botswana pula	25	30
Mozambican metical	1	1
ZWL dollar	30	30
Rwandan franc	48	115
South African rand	140	143
Ethiopian birr	13	—
United States dollar	167	258
Balance at the end of the year	424	577

JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTY

Cash and cash equivalents are recognised net of expected credit losses. During the current year, in line with the requirements of IFRS 9 – Financial Instruments, cash and cash equivalents were assessed for expected credit losses by analysing the credit rating of each financial institution where PPC Ltd and its subsidiaries have invested cash. This resulted in an expected credit loss (ECL) of R12 million (2022: R4 million) being recognised in the current year, R6 million of which relates to cash deposits held in Zimbabwe banks and R2 million relates to cash deposits held in Rwanda banks. Refer to note 28 for detailed assessment.

Cash and cash equivalents comprise cash and short-term bank deposits with an original maturity of three months or less. The carrying amount of these assets is approximately equal to their fair value. Amounts denominated in foreign currencies have been translated at ruling exchange rates at year-end (refer to note 1.5.).

Included in cash and cash equivalents is restricted cash:

PPC Environmental Trust	10	10
PPC International Holdings	13	—
Consolidated BEE SPVs	2	67
	25	77

Cash and cash equivalents held by the PPC Environmental Trust can only be utilised for environmental obligations in South Africa and are therefore not freely available as per regulations.

The company is in the process of winding up the BEE SPVs and Trusts. As part of the process, the PPC Ltd shares held by these entities were sold on the open market for cash in the prior year. The proceeds are to be used solely for the beneficiaries.

The proceeds from the sale of the investment in Habesha have been mandatorily placed in an Ethiopian birr account. The regulators have not yet allowed for the funds to be repatriated to South Africa, resulting in the restriction of this cash.

12. STATED CAPITAL AND RESERVES

12.1 STATED CAPITAL

Stated capital

sued shares
easury shares
ated capital

Unissued shares

	31 March 2023Shares	31 March 2022Shares
Authorised ordinary shares	10 000 000 000 10 000 000 000
Refer to note 24 for total shares in issue
Authorised preference shares	20 000 000	20 000 000
Twenty million preference shares of R1 000 each. No preference shares have been issued.
	Rm	Rm
Stated capital
Balance at the beginning of the year	4 575	3 965
Shares purchased in terms of incentive scheme	(36)	(21)
Vesting of share incentive scheme	5	—
Shares held by BEE SPV entities previously treated as treasury shares(a)	—	631
Balance at the end of the year	4 544	4 575
Stated capital is broken down as follows:
	Rm	Rm
Issued shares	5 395	5 395
Treasury shares	(851)	(820)
Stated capital	4 544	4 575
	Shares	Shares
Unissued shares
Ordinary sharesPreference shares	8 446 235 376	8 450 320 02020 000 000
	20 000 000
(a) These shares were owned by BEE SPVs and treated as treasury shares, but sold on the open market in the prior year.
	Rm	Rm
Foreign currency translation reserve	(7 388)	(5 054)
Post-retirement benefit	5	—
Equity compensation reserve	569	465
Financial assets at fair value through other comprehensive income	(4)	(3)
	(6 818)	(4 592)
		Restated(b)
	Rm	Rm
NON-CONTROLLING INTEREST
Non-controlling interest reconciliation
Balance at the beginning of the year	22	56
Profit for the year attributable to non-controlling interests	93	(17)
Disposal of subsidiary	579	—
Dividends declared	(94)	(7)
Foreign currency translation reserve	17	(10)
Balance at the end of the year	617	22

12.2 OTHER RESERVES

12.3 NON-CONTROLLING INTEREST

Non-controlling interest reconciliation (b) A prior period restatement was recognised on the previously recognised impairment, refer to note 1.7. group. Non-controlling interests are measured at their proportionate share of the entity's net assets.

Non-controlling interests represents the value of the remaining ownership in the subsidiary investments that are not wholly owned by the

Refer to note 34 for details of the non-controlling interests within the group.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

13. PROVISIONS

		March2023Rm	March2022Rm
13.1	Decommissioning and rehabilitation	176	202
13.2	Post-retirement healthcare benefits	15	21
13.3	Legal provision	2	—
13.4	Restructuring costs	9	—
		202	223

	Decommissioningand rehabilitationRm	PostretirementhealthcarebenefitsRm	Provision forlegal feeRm	RestructuringcostsRm	TotalRm
Movement in the long-term provisions
2023
Balance at the beginning of the year	202	21	—	—	223
Amounts added	1	—	2	9	12
Amounts utilised	(17)	—	—	—	(17)
Other movements(a)	27	(4)	—	—	23
Time value of money adjustments	8	—	—	—	8
Translation differences	(45)	(2)	—	—	(47)
Balance at the end of the year	176	15	2	9	202
To be incurred:
Within one year – included in currentliabilities	3	1	2	9	15
More than one year – included in noncurrent liabilities	173	14	—	—	187
Between two to five years	6	7	—	—	13
More than five years	167	7	—	—	174
	176	15	2	9	202

13. PROVISIONS continued

JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTY

13.1 DECOMMISSIONING AND REHABILITATION OBLIGATIONS Estimating these obligations is complex as most of the obligations will only be fulfilled sometime in the future and the provisions are influenced by changing regulations and technologies, life-of-mine, and political, environmental, safety, business and statutory considerations across the various jurisdictions in which PPC operates. Group companies are required to restore mining and processing sites at the end of their productive lives to an acceptable condition consistent with local regulations and in line with group policy.

In accordance with local legislation, PPC Ltd has set up an environmental trust in South Africa to administer the local funding requirements of its decommissioning and rehabilitation obligations. The investments in the trust are carried at fair value through profit or loss and amount to R176 million (2022: R144 million) at year-end (refer to note 6).

Legislative requirements in Rwanda require the companies operating in those countries to issue a guarantee for environmental rehabilitation of mining sites. There is no such requirement at this time for companies operating in Zimbabwe.

The estimation of the costs to remediate the mining sites and affected processing sites as well as the determination of the other key inputs above have been based, where possible, on external independent third-party information. The determination of the riskfree discount rates have been based, where available, on long-dated government risk-free bond rates or such other rate that can be reasonably applied for the purposes of determining the present value of the future estimated cash flows. The discount rates for international operations were determined with reference to the most appropriate government bond in the relevant country, factoring in the life-of-mine or plant. The South African operations' discount rates were determined using a yield curve using the government bonds with various maturity dates to extrapolate along the yield curve in order to obtain an internally generated discount rate. The South African curve used yielded a rate between 8% and 11%.

	March2023Rm	March2022Rm
Breakdown of decommissioning and rehabilitation obligations per entity
PPC Cement SA	115	126
3Q Mahuma	9	9
PPC Aggregates SA	8	9
CIMERWA	3	3
PPC Zimbabwe	41	55
	176	202

	Inflation rates		Risk-free discount rate
	2023	2022	2023	2022
	%	%	%	%
The key inputs used for calculating the provision
South Africa	5	5	8 – 11	5 – 11
Rwanda	7	5	12	13
Zimbabwe	2	3	12	9
Life-of-mine limited to a maximum of 30 years

The key inputs used for calculating the provision
Life-of-mine limited to a maximum of 30 years

		Post-retirement
	Decommissioning	healthcare	Provision for	Restructuring
	and rehabilitation	benefits	success fee	costs	Total
	Rm	Rm	Rm	Rm	Rm
2022
Balance at the beginning of the year	194	35	20	—	249
Amounts added	4	1	—	—	5
Amounts reversed/utilised	—	—	(20)	—	(20)
Other movements(a)	20	(10)	—	—	10
Time value of money adjustments	9	—	—	—	9
Translation differences	(25)	(5)	—	—	(30)
Balance at the end of the year	202	21	—	—	223
To be incurred:
Within one year – included in currentliabilities	10	2	—	—	12
More than one year – included in noncurrent liabilities	192	19	—	—	211
Between two and five years	6	8	—	—	14
More than five years	186	11	—	—	197
	202	21	—	—	223

(a) Includes the impact of hyperinflation of R1 million loss (2022: R2 million loss). The decommissioning and rehabilitation provision calculation for Zimbabwe is maintained in US$ and then translated to ZWL; the movement in foreign exchange differences is included in other movements.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

13. PROVISIONS continued

JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTY CONTINUED

13.1 DECOMMISSIONING AND REHABILITATION OBLIGATIONS CONTINUED

Sensitivity analysis

The carrying value of the closure provisions is sensitive to the estimates and assumptions used in its measurement. If the discount rate and inflation rate had been higher or lower than management's estimate, the group would have (increased) or decreased the current provision as follows:

	20232% higher	20232% lower	20222%higher	20222% lower
Discount rates
South Africa	(34)	54	(39)	63
Rwanda	(1)	1	(1)	1
Zimbabwe	(13)	21	(19)	32
	20231% higher	20231% lower	20221% higher	20221% lower
Inflation rates
South Africa	(23)	46	(29)	23
Rwanda	—	—	—	—
Zimbabwe	(8)	7	(15)	12

13.2 POST-RETIREMENT HEALTHCARE BENEFITS

The PPC group has defined benefit plans for qualifying former employees in respect of post-employment healthcare benefits. The defined benefit plans post-employment healthcare benefits are administered by Corner House Pensioners, Cement and Concrete Institute Pensioners and PPC Zimbabwe Ltd, all funds that are legally separated from the PPC group.

Historically, qualifying employees were granted certain post-retirement healthcare benefits. The obligation for the employer to pay medical aid contributions after retirement is no longer part of the conditions of employment for new employees. A number of pensioners remain entitled to this benefit, the cost of which has been fully provided.

Included in the provision are the following:

Post-retirement healthcare benefits	Valuation method	Actuarial valuationdate	March2023Rm	March2022Rm
Cement and Concrete Institute employees	Projected unit credit	February 2023	7	7
Corner House Pension Fund	Projected unit credit	February 2023	8	12
Porthold post-retirement Medical Fund	Projected unit credit	September 2021(a)	—	2
			15	21

(a) The liabilities are revalued every three years.

Cement and Concrete Institute employees

The provision relates to post-employment healthcare benefits in respect of former employees of the Cement and Concrete Institute.

Corner House Pension Fund

The provision relates to post-employment healthcare benefits in respect of certain Corner House Pension Fund continuation members.

Porthold post-retirement Medical Fund

The provision relates to healthcare benefits for both active and retired employees who joined the medical aid scheme on or after 1 October 2001.

13. PROVISIONS continued

13.2 POST-RETIREMENT HEALTHCARE BENEFITs CONTINUED Defined benefit plans

The PPC group post-employment subsidy policy states that the company subsidises the total medical scheme contributions at either 80% or 100%, and dependants of eligible continuation members receive a subsidy before and after the death of the principal member.

The defined benefit plans require contributions from PPC group and typically expose the company to actuarial risks such as inflation, future changes in legislation, longevity, future changes in the tax environment, enforcement of eligibility criteria and rules, and administration risk. The risk relating to post-employment healthcare benefits to be paid to the dependants of plan members are not insured by an external insurance company.

The movement in the post-retirement medical benefit fund is a gain of R6 million (2022: R14 million gain) for the year; the closing balance at 31 March 2023 amounted to R15 million (2022: R21 million).

South Africa (Cement and Concrete Institute employees and Corner House Pension Fund employees) The most recent actuarial valuations of the plan assets and the present value of the defined benefit liability were carried out on 28 February 2023 by Alexander Forbes Health (Pty) Ltd of the Actuarial Society of South Africa.

The actuarial valuation method used to determine the present value of the defined benefit liability, and the related current service cost and past service cost, is the projected unit credit method prescribed by IAS 19 – Employee Benefits. Future benefits valued are projected using specific actuarial assumptions and the liability for in-service members is accrued over the expected working lifetime.

In order to undertake the valuation, it is necessary to make a number of assumptions. The most significant assumptions used for the previous and current valuations are outlined below.

Discount rate	11,20% (2022: 10,30%)
Healthcare cost inflation	7,20% (2022: 7,80%)

Post-retirement mortality assumption PA(90) ultimate rated down two years + 1,0% pa.

Zimbabwe (Porthold post-retirement Medical Fund)

PPC Zimbabwe provides post-retirement medical benefits for qualifying employees. The cost of these benefits is actuarially valued every three years. The latest valuation being for the period ended 30 September 2021 and the result of which has been brought to account in these financial statements.

The following key parameters were used in the valuation:
Discount rate	15,84%
General inflation	7,69%
Health cost inflation	9,19%
Net gap (discount rate versus health cost inflation)	6,09%

Defined contribution plans

The total cost charged to the income statement of R100 million (2022: R91 million) represents contributions paid to these schemes by the group at rates specified in the rules of the schemes. At 31 March 2023, all contributions due in respect of the current reporting period had been paid over to the schemes.

13.3 PROVISION FOR LEGAL FEE

The provision relates to a labour dispute with two former PPC Zimbabwe employees.

13.4 RESTRUCTURING COSTS

PPC's Materials businesses (housed in legal entities PPC Aggregates SA, 3Q Mahuma Concrete and Pronto Building Materials) have been under severe financial pressure as a result of soft markets in which the businesses operate. Management took three decisions prior to 31 March 2023:

a. To reduce staff costs through a S189 process, the costs of which have been provided for at 31 March 2023.

b. The negotiation for the sale of trucks (refer to note 8).

c. One of the plants at Laezonia has been mothballed, pending market demand (refer to note 21).

Refer to note 21, for the details of the CGU impairments.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

14. BORROWINGS

	March2023	March2023	March(a)2022
	Rm	Rm	Rm
South Africa long-termfunding	Available	Utilised Utilised		Interest base	Interestmargin(basispoints)	Interestpaymentfrequency	Finalmaturity Security
Facility A – bullet term loan	400	400	400	3-month JIBAR	284		Quarterly 17 Dec 2024 Secured
Facility B – revolving creditfacility	500	—	—	3-month JIBAR	305		Quarterly 17 Dec 2025 Secured
Facility C – amortising termloan(b)	525	525	600	3-month JIBAR	294	Quarterly	15 Sep 2026 Secured
Capitalised transaction costsCapitalised transaction costs	—	(4)	(4)
written off	—	3	3
Total	1 425	924	999
International projectfunding
Rwanda	265	265	383	13,2%(c)	N/A		Monthly 30 Aug 2024 Secured
Capitalised transaction costs	—	(6)	(6)
Total	265	259	377
Total long-term borrowings	1 690	1 183	1 376
Short-term facilities
South Africa	540	6	210
Total short-term borrowings	540	6	210
Total borrowings	2 230	1 189	1 586

(a) Accrued finance charges of R5 million have been reclassified from trade and other payables to short-term borrowings to align to the amortised cost measurement.

(b) This facility is a term loan with the capital repayable in biannual instalments (of R75 million each) commencing in March 2023 and ending in September 2026.

(c) Weighted average interest rate across all banks participating in the facility.

Broken down as follows:
	Long-term portion of long-term funding
	Short-term portion of long-term funding
	Maturity analysis of total borrowings:

	March2023Rm	March2022Rm
Broken down as follows:
Long-term portion of long-term funding
South Africa	775	923
Rwanda	77	227
	852	1 150
Short-term portion of long-term funding
South Africa	149	75
Rwanda	182	151
	331	226
Short-term facilities and bank overdrafts	6	210
	1 189	1 586
Maturity analysis of total borrowings:
One year	337	436
Two years	628	306
Three years	150	620
Four years	74	224
	1 189	1 586
Carrying amount of assets encumbered
Property, plant and equipment (refer to note 2)	4 130	4 242
Inventories (refer to note 9)	764	631
Trade receivables (refer to note 10)	641	539

Carrying amount of assets encumbered

PPC has a security pool arrangement with FirstRand Bank Ltd (acting through its Rand Merchant Bank division, RMB) and Nedbank Ltd (acting through its Nedbank Corporate and Investment Banking Division, Nedbank) (collectively the SA Lenders). As is the practice in South Africa, PPC established a special purpose company (the shareholding of which is held 100% by a special purpose owner trust) to hold and enforce security for the benefit of the SA Lenders.

The Debt Guarantor established for PPC and its subsidiaries' South African refinancing with the SA Lenders is Maitlantic 6060 (RF) (Pty) Ltd (the special purpose vehicle (SPV). The SPV is ring-fenced, the effect of this is that its MOI only permits it to enter into the relevant finance documents associated with the South African PPC refinancing with the SA Lenders.

The shares in the SPV are held by a special purpose owner trust established in terms of a trust deed, which has been registered with the Master of the High Court. The trust and the SPV are administered by a reputable corporate fiduciary service provider called Maitland Group South Africa Ltd.

PPC registered bonds over immovable property, including certain property, plant and equipment, inventories and trade receivables, in favour of the SPV.

The SPV has issued guarantees in favour of the SA Lenders (collectively the Debt Guarantor Guarantees). In terms of the Debt Guarantor Guarantees, the SPV guarantees the liabilities and obligations of PPC Cement SA (Pty) Ltd, PPC Ltd, PPC South Africa Holdings (Pty) Ltd, Pronto Holdings (Pty) Ltd, Pronto Building Materials (Pty) Ltd (collectively the Obligors) that are owing from time to time by the Obligors to the SA Lenders under the relevant finance documents.

The obligations of the SPV under the Debt Guarantor Guarantees is limited to what the SPV recovers from the Obligors and PPC Botswana (Pty) Ltd (PPC Botswana). This is achieved in terms of a counter indemnity agreement that the SPV entered into with the Obligors and PPC Botswana.

PPC does not have any power over either the SPV or the trust and as such these entities are not consolidated. PPC is not exposed to any risk from either entity or any variable return from either entity. Refer to note 35.

The Financial Stability Board has initiated a fundamental review and reform of the major interest rate benchmarks used globally by financial market participants. This review seeks to replace existing interbank offered rates (IBORs) with alternative risk-free rates (ARRs) to improve market efficiency and mitigate systemic risk across financial markets. The South African Reserve Bank (SARB) has indicated their intention to move away from JIBAR and to create an alternative reference rate for South Africa. The SARB has indicated their initial preference for the adoption of the South African Rand Overnight Index Average (ZARONIA) as the preferred rate to replace JIBAR in cash and derivative instruments. ZARONIA has been published for the purposes of observing the rate and how it behaves, but has not been formally adopted by the SARB as the successor rate to JIBAR. Accordingly, there is still uncertainty surrounding the timing and manner in which the transition will occur and how this will affect various financial instruments held by the group.

14. BORROWINGS continued

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

15. OTHER NON-CURRENT LIABILITIES

	March	March
	2023	2022
	Rm	Rm
Included in other non-current liabilities:
Interest rate swap liability	1	—
Balance at the end of the year	1	—

JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTY

Interest rate swap liability

On 15 September 2022, PPC Cement SA (Pty) Ltd entered into interest rate swaps with RMB and Nedbank in order to manage interest rate movement risk, reduce the earnings volatility and improve the certainty of interest cash flows.

The two interest rate swaps are for 50% of the South African debt with the following key terms:

	Interest rate swap 1	Interest rate swap 2
Originating date	15 September 2022	15 September 2022
Maturity date	15 September 2025	17 December 2024
Notional principal	R300 000 000	R200 000 000
Fixed rate (yield)	8,040%	8,050%

Put option liability

In 2015, PPC Ltd entered into a Put Option Agreement with the International Finance Corporation (IFC) in terms of which the latter can put its investment or part thereof in PPC Barnet DRC Holdings to PPC Ltd. The put option may be exercised between 24 September 2021 and 24 September 2026 and under further specific circumstances detailed in the agreement. The agreement provides for the determination of the option price by way of a formula as follows:

(EBITDA x earnings multiple) – net financial debt

As a result of the slower-than-anticipated ramp up and the increase in net financial debt in the DRC, the value of the option is nil in terms of the formula.

16. TRADE AND OTHER PAYABLES

	March2023Rm	Reclassified(a)March2022Rm
Capital expenditure payables	5	—
Unclaimed dividends	—	11
Other financial payables	47	50
Carbon tax accrual(b)	68	64
Trade payables and accruals(c)	946	855
Trade and other financial payables	1 066	980
Income received in advance	6	3
Payroll accruals	193	246
VAT payable	23	22
	1 288	1 251

(a) Accrued finance charges of R5 million have been reclassified from trade and other payables to short-term borrowings to align with the amortised cost measurement.

(b) Carbon tax accrual is based on greenhouse gas (GHG) emissions in terms of the Carbon Tax Act 15 of 2019 (the Carbon Tax Act).

(c) Trade payables and accruals comprise outstanding trade purchases and other costs. PPC group's average payment terms are 30 days from the statement date. The group has financial risk management policies to ensure that all trade payables are paid within the payment terms, which results in insignificant interest charges.

Other payables, payroll accruals and VAT obligations are payable within a 30 to 60-day period.

17. REVENUE FROM CONTRACTS WITH CUSTOMERS

The group's revenue is derived from the sale of cementitious products to the group's customers. For cementitious products, revenue is recognised when the related performance obligations are satisfied by transferring control of the promised cementitious product to the group's customers. Revenue is disclosed net of indirect taxes, rebates and discounts offered to customers and after eliminating intergroup sales.

Revenue is recognised at the amount of the transaction price that is allocated to each performance obligation. For contracts that contain multiple performance obligations, the transaction price is allocated to each performance obligation based on relative standalone selling prices. Revenue recognised is based on the amount that depicts the consideration to which the group expects to be entitled in exchange for transferring the goods and services promised to the customer.

The group has the following revenue streams, which are recognised at a point in time:

Major goods and services per primary geographical markets
Disaggregation of revenue

	March2023Rm	March2022Rm(a)
Disaggregation of revenue
Cementitious goods	8 825	8 796
Aggregates	154	196
Readymix	803	757
Ash	120	133
Total revenue	9 902	9 882
Major goods and services per primary geographical markets
	9 902	9 882
South Africa(b)	6 148	6 030
Botswana	438	471
Zimbabwe	1 753	2 172
Rwanda	1 563	1 209

(a) The disaggregation of revenue has been represented for the prior year to depict the types of products which PPC offers to its customers. This disclosure enhances the quality of the revenue information. (b) The revenue from South Africa includes cementitious goods, aggregates, readymix, ash.

SALE OF CEMENTITIOUS PRODUCTS

The group manufactures and sells a range of cementitious products that include the sale of cement, readymix, clinker and aggregates. Revenue from the sale of cementitious goods is recognised when delivery has taken place and control of the goods has been transferred to the customer. The customer obtains control of the goods when the significant risks and rewards of products sold are transferred according to the specific delivery terms that have been formally agreed with the customer. This occurs upon delivery, when the bill of lading is signed by the customer as evidence that they have obtained physical possession and accepted the products delivered.

Cementitious products are often sold with retrospective volume rebates based on aggregate sales over a specified period. Revenue from these sales is recognised based on the selling price specified in the contract, net of the estimated volume rebates. Accumulated experience is used to estimate and provide for the rebates using the most likely amount method. In this regard, revenue is recognised to the extent that it is highly probable that a significant reversal will not occur. A refund liability is recognised for expected volume rebates payable to customers in relation to sales made until the end of the reporting period. As part of the assessment of whether the estimated volume rebate should be constrained, it was noted that there were no significant reversals from the refund liability that were recognised in the current year. Management will continue to reassess its ability to reasonably estimate the expected volume rebates.

A receivable is recognised when the goods are delivered. This is the point in time that the consideration becomes unconditional as only the passage of time is required before the payment is due. No significant financing element is deemed present as the sales are made with credit terms largely ranging between 30 and 60 days which is consistent with market practice.

Generally, cementitious products are not returned as a customer will only accept these products once they have passed a stringent quality check at delivery. No warranty provision or right of return contract liabilities have therefore been recognised by the group in this regard.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

18. SHARE-BASED PAYMENTS

JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTY

Fair value used in calculating the amount to be expensed as a share-based payment is subject to a level of uncertainty. The group is required to calculate the fair value of the equity-settled instruments granted to employees in terms of the long-term incentive plan (LTIP).

These fair values are calculated by applying a valuation model, which is in itself judgmental, and considers certain inherently uncertain assumptions such as dividend yield, share price volatility, performance conditions and staff turnover.

18.1. RETENTION AWARDS

In terms of IFRS 2 – Share-based Payment, the fair value of each share awarded, which will be expensed over the vesting period in return for services rendered, is based on the average market price of acquiring the share and is not remeasured subsequently. The service and performance conditions are taken into account in the number of instruments that are expected to vest. Subsequent revisions are made for changes in estimated attrition and probability of satisfaction of performance conditions.

On 1 October 2019, PPC granted 1 311 715 retention awards to a director. On 1 October 2022, the shares vested unconditionally with the director.

	Retention
	awards
Date of grant	01/10/2019
Number of shares granted to a director	1 311 715
Number of shares granted to management and prescribed officers	—
	3,89
Estimated fair value per share at grant date (R)	3,89

18. SHARE-BASED PAYMENTS continued

18.2 LONG-TERM INCENTIVE PLAN

The LTIP was introduced on 1 April 2020 and offers employees across the group participation in the LTIP with the aim of driving group performance in line with the company's strategy. In order to recognise contributions made by selected employees and provide an incentive for their continued performance and relationship with the group, the LTIP provides them with the opportunity of receiving a long-term incentive and to ensure that the company attracts and retains the core competencies required for formulating and implementing the company's business strategies.

On 1 April each year, a LTIP participant is allocated an incentive value being the participant's total guaranteed package multiplied by a relevant allocation percentage. Performance conditions are set annually for the performance period. At the end of the performance period (being a period of one year), the remuneration and talent committee will assess whether the performance conditions have been met and adjust the incentive value accordingly. PPC Ltd will then provide the cash to the Central Securities Depository Participant (CSDP) to enable the CSDP to purchase PPC shares on the market to the value of the adjusted incentive value. The number of shares awarded to each participant can therefore only be determined at that time. The shares are held by an escrow agent until the release date. The employer companies will reimburse PPC Ltd for the cost of the shares. During the vesting period (three years postperformance conditions being met), the employee is entitled to dividends and voting rights but may not dispose of the shares until the vesting conditions have been met and the shares have been released. Should any shares be forfeited in terms of the rules, PPC will instruct the escrow agent to sell the shares and return the cash to the employer company. The vesting condition is that the employee has to remain in the employ of the employer for a further three years after the performance conditions have been met.

The performance conditions include both market (being total shareholder return) and non-market-related conditions (being board approved budgeted return on invested capital).

LTIP award

	Actualnumber ofawards as at	Estimatednumber ofawards as at31 March 2022	Actualnumber ofawards as at
LTIP award	31 March 2023 –	for the 2022	31 March 2023 –
	2022 scheme(a)	scheme(a)	2021 scheme(b)
Number of shares	15 962 857	12 620 187	12 858 630
Price per share	3,51	4,25	3,93

(a) At 31 March 2022, management estimated that 100% of the performance conditions would be met and that 12 620 187 shares would be awarded, based on the share price at the time of R4,25. In July 2022, the performance conditions were measured and determined to be exceeded, resulting in 15 962 857 shares being awarded at an average price of R3,51 per share.

These shares will become unconditional on 1 April 2025. (b) In July 2021, 14 632 975 shares were awarded at an average price of R3,93 per share. Between the award date and 31 March 2023, 1 774 345 shares were forfeited in terms of the rules of the scheme. The remaining 12 858 630 shares will become unconditional on 1 April 2024.

At 31 March 2023, management estimated that the performance conditions would not be met and therefore no shares will be awarded for the 2023 scheme.

	2023Rm	2022Rm
The carrying amount of the LTIP in equity compensation reserve at year-end	79	57

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

19. FAIR VALUE AND FOREIGN EXCHANGE MOVEMENTS

JUDGEMENTS MADE BY MANAGEMENT

Valuation of financial instruments

The valuation of financial instruments is based on the market position at the reporting date and other assumptions such as volatility, intrinsic value, time value and interest rates. The value of the derivative instrument fluctuates and the actual amounts realised may differ materially from their value at the reporting date.

19.1 FAIR VALUE AND FOREIGN EXCHANGE MOVEMENTS

Movements in the fair value and foreign exchange gains/losses are recognised in the statement of profit or loss and comprise the following:

	March2023Rm	March2022Rm
Movements in the fair value and foreign exchange gains are recognised in the statement of profit orloss and comprise the following:
Fair value gain on cell captive investment	14	12
Fair value loss on Olegra receivable	—	(5)
Fair value (loss)/gain on remeasurement of interest rate swap liability (refer to note 15)	(1)	11
Fair value gain on unlisted collective investments	—	3
Foreign exchange movements on translation of foreign currency denominated monetary items(a)	56	(19)
	69	2

(a) Gain/(loss) on translation of foreign currency denominated monetary items.

19.2 TRANSLATION OF FOREIGN OPERATIONS

Movements in the translation of foreign operations are recognised in the statement of comprehensive income. The group's foreign currency translation reserve arises from the following foreign subsidiaries and associates:

	March2023	March2022
	Rm	Rm
PPC Zimbabwe(a)	(2 521)	(1 411)
CIMERWA	136	(46)
PPC Barnet DRC	—	(47)
PPC International Holdings	(37)	60
PPC Botswana	2	1
	(2 420)	(1 443)

(a) In the current year, PPC Zimbabwe's net non-monetary assets declined significantly due to hyperinflation, which has a material impact on the movement in the foreign currency translation reserve.

Over and above the hyperinflation impacts in PPC Zimbabwe, the loss recorded in the current year is also due to the weakening of the rand against the functional currencies of the Group's operating subsidiaries.

Details on fair value hierarchies are disclosed in note 28.

Details on foreign exchange rates can be found in note 1.5.

20. DISPOSAL OF SUBSIDIARIES

PPC BARNET DRC (PPC BARNET)

The group has considered the following in accounting for its investment in PPC Barnet during the current year:

• The Group's power to direct the relevant activities of PPC Barnet;
• The Group's exposure to variable returns of PPC Barnet;
• The Group's ability to use its power over PPC Barnet to affect the amount of PPC Barnet's returns;
• The effective date of the loss of control;
• The derecognition of PPC Barnet's assets, liabilities and non-controlling interest; and • The recycling of the foreign currency translation reserve.

On 29 April 2022, a formal "Restructuring Effective Date Notice" was issued, resulting in the following: i. All economic benefits for the foreseeable future that may be generated by PPC Barnet will accrue to parties outside of PPC, being the

ii. PPC has a management agreement with PPC Barnet to manage and run the day-to-day operations of PPC Barnet for a period of five years. PPC does not have the right to terminate the agreement for the initial five-year period. The lenders do not have the right to terminate the agreement within the first two years, whereafter they have the right to terminate the agreement with 12 months' notice. However, should the lenders exercise the call option (refer point iv), the management agreement will be

iii. PPC has the right to appoint >50% of the directors of PPC Barnet. However, reserved matters need specific lenders' approval and include all strategic matters, approval of budgets, sale of assets, investments and changes to share capital. The lenders also have the

• PPC Barnet lenders.
• terminated (after a three-month notice period).
• right at any time to replace all of the PPC nominated directors.
• JPS. The call option is substantive.
• lenders to do so which will take its shareholding to 49%. At 31 March 2023, the shareholding was still at 59%.

iv. A call option has been granted to the lenders which allows the lenders to call on the full issued ordinary shares of PPC Barnet as well as the junior preference shares (JPS). The option is exercisable from the restructuring effective date to the date that all debts owed to the lenders have been repaid in full. The exercise price of the call option will be a nominal amount of US$1 for the first five years from issuance date. To the extent the lenders sell the equity and JPS for more than their debt, the excess will be paid for the

v. PPC has sold 10% of its shareholding in PPC Barnet and has committed to sell a further 10% and has the permission of the

The loss of control of the operations resulted in a loss of R400 million determined as follows:

	29 April 2022Rm
Consideration receivable	—
Carrying amount of net assets	(261)
Loss on restructure	(261)
Non-controlling interest	579
Loss before reclassification of foreign currency translation reserve	318
Reclassification of foreign currency translation reserve	111
Loss on restructure (loss of control)	429
Deferred tax impact	29
Loss on sale of subsidiaries	400
A prior period restatement was recognised on the previously recognised impairment, refer to note 1.7.

The investment was equity-accounted following the loss of control, refer to note 31.

21. IMPAIRMENTS AND REVERSALS OF IMPAIRMENTS

	March2023Rm	March2022Rm
Impairment of goodwill (refer to note 4)	(42)	—
Impairment of intangible assets (refer to note 5)	(19)	(29)
Impairment of property, plant and equipment (refer to note 2)	(85)	(100)
Reversal of impairment of right-of-use asset (refer to note 3)	—	3
Reversal of impairment of property, plant and equipment (refer to note 2)	1	88
Gross impairments	(145)	(38)
Taxation impact	25	11
Net impairments	(120)	(27)

IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT, GOODWILL AND OTHER INTANGIBLE ASSETS

IAS 36 states that an entity shall assess assets for impairment at the end of each reporting period or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. When an impairment indicator exists, the recoverable amount of an asset is calculated and compared to the carrying value.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

21. IMPAIRMENTS AND REVERSALS OF IMPAIRMENTS continued

JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTY

The future cash flows expected to be generated by the cash-generating units (CGUs) are forecast, taking into account market conditions and the expected useful lives of the assets. These matters require judgement. The present value of these cash flows, determined using an appropriate discount rate, is compared to the current carrying value and, if lower, the assets are written down to the present value calculated.

The recoverable amounts of the CGUs are determined using the higher of fair value less costs to sell and value in use assessments. These calculations use cash flow projections based on the most recent financial budgets approved by management and the board for the next five years. These financial budgets are the quantification of board-approved strategies derived from the strategic planning process followed across the group. The process ensures that significant risks and sensitivities are appropriately considered and factored into the strategic plans.

Management estimates discount rates for each CGU, adjusted for risks associated with the geographical markets in which the CGUs operate. Additionally, management considers the impact of sales volumes both from a market and customer variation point of view, production efficiencies and the impact of fluctuations in overheads when determining the cash flow projections used in value-in-use calculations.

IMPAIRMENT INDICATORS

IAS 36 – Impairment of Assets requires assets within its scope to be tested for impairment when indicators of impairment exist at the end of a reporting period.

Impairment losses recognised in prior periods are assessed for any indications that the loss has decreased or no longer exists. Impairment losses are reversed if there has been a change in the estimates used to determine the recoverable amount. Impairment losses are reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

Impairments and impairment reversals	2023Rm	Reasons for impairments and impairment reversals
Impairments of CGUs during the current financial year
3Q Mahuma Concrete (Readymix east region)	9	The shrinkage of commercial and industrial projects in the relevanteconomic region had a negative impact on actual prior year financialresults, resulting in lower budgeted volumes in the Readymix eastregion.
3Q Mahuma Concrete (Readymix west region)	9	An impairment of R9 million was recognised on the Readymix westregion mainly, due to sluggish markets and a lack of constructionprojects in the commercial and industrial sector.
3Q Mahuma Concrete (Readymix Nelspruit region)	24	An impairment was recognised on the Readymix Nelspruit region,mainly due to a downturn in the markets due to a lack of constructionprojects.
CIMERWA	84	The recoverable amount of the CGU, including goodwill and assetsrecognised at group on acquisition, amounts to R1 526 million resultingin an impairment loss of R84 million. The impairment is allocated togoodwill (R42 million), property, plant and equipment (R28 million) andintangible assets (R14 million).
Impairment of individual assets
PPC Group Shared Services (a)	5	Computer software was impaired in the current year as there was nolonger a plan to use this software.
PPC Aggregates SA	6	One plant in Laezonia in the CGU has been mothballed, pending marketdemand.
PPC Cement SA (Coastal business unit)	3	Coastal impaired building, plant, machinery and equipment, andfurniture and fittings because the assets are no longer in use at itsMontague gardens depot. The building impairment of R2 million relatesto the railway infrastructure that is no longer in use.
PPC Cement SA (Inland business unit)	6	PPC Cement SA has impaired a kiln line for a plant which was no longerin use and has now been demolished.
Impairment reversals of individual assets
PPC Group Shared Services(a)		(1) During FY22, IT equipment was impaired because there was no futureeconomic value. However, during the current year a reimbursement wasreceived for certain laptops.
Net impairment loss	145

(a) PPC Group Shared Services is a shared business unit and considered to be a corporate entity.

21. IMPAIRMENTS AND REVERSALS OF IMPAIRMENTS continued

IMPAIRMENT INDICATORS CONTINUED

Key assumptions used for value in use calculations:	Terminal growth rate		Discount rate
	31 March 2023%	31 March 2022%	31 March 2023%	31 March 2022%
PPC Cement SA(a)	5	5	15	13
PPC Aggregates SA	5	5	19	17
Readymix(b)	5	5	19	17
PPC Botswana Cement	4	4	16	15
PPC Zimbabwe (US$)	5	5	19	14
CIMERWA(c)	—	5	18	14

(a) Inland and coastal business units use the PPC Cement SA rates.

(b) Readymix – Gauteng Region, Readymix – East Region, Readymix – West Region, Readymix – Nelspruit, Readymix – Projects and Ulula Ash use the Readymix rates. (c) The impairment model used previously estimated cash flows for five years and then applied an estimated terminal growth rate, which effectively assumes that year five cash flows will be realised into perpetuity. CIMERWA reserves and resources are limited to 15 years and in the past, it was assumed that alternative sources of limestone could be sourced and hence the terminal growth rate was appropriate. In the current year, it is deemed more prudent to estimate fair value on a life-of-mine basis until alternative sources of limestone are secured.

In preparing the financial statements, management has considered whether a reasonable possible change in the key assumptions on which management has based its determination of the recoverable amounts of the CGUs would result in the units' carrying amounts to exceed their recoverable amounts. If the discount rate, growth rate or cash flows increase or decrease by 2,5%, 1% or 5%, respectively, the impairment charge will (increase) or decrease and the headroom will increase or (decrease) as follows:

Impact on impairment and headroom

CGU	Segment	Recoverableamount	(Impairment)/headroom	Discountrateincrease2,5%	Discountratedecrease2,5%	Growth rateincrease 1%	Growth ratedecrease1%	Overallcash flowsincrease/decreaseby 5%
31 March 2023Rm
Inland business unit	South Africa andBotswana – Cement	5 464	1 981	(1 146)	1 892	442	(364)	273
Coastal business unit South Africa and	Botswana – Cement	2 270	1 320	(486)	806	190	(156)	113
Port Elizabeth plant	South Africa andBotswana – Cement	63	18	(10)	15	3	(3)	3
PPC BotswanaCement	South Africa andBotswana – Cement	139	132	(24)	37	8	(7)	7
PPC Aggregates SA	South Africa –Aggregates, Ash andReadymix	172	56	(30)	43	10	(8)	9
Readymix – GautengRegion	South Africa –Aggregates, Ash andReadymix	192	73	(34)	49	11	(9)	10
Readymix – EastRegion	South Africa –Aggregates, Ash andReadymix	12	(9)	(4)	6	1	(1)	1
Readymix – WestRegion	South Africa –Aggregates, Ash andReadymix	3	(9)	(1)	1	—	—	—
Readymix – Nelspruit South Africa –	Aggregates, Ash andReadymix	(1)	(24)	—	1	—	—	—
Readymix – Projects	South Africa –Aggregates, Ash andReadymix	18	16	(3)	4	1	(1)	1
Ulula Ash	South Africa –Aggregates, Ash and
PPC Zimbabwe	ReadymixZimbabwe – Cement	2932 760	2851 373	(48)(399)	68574	15122	(13)(105)	15138
CIMERWA(a)	Rwanda – Cement	1 442	(84)	(147)	178	—	—	72

(a) The carrying value of the CGU including goodwill and assets recognised at group amounts to R1 526 million, resulting in an impairment loss of R84 million, of which R42 million is allocated to goodwill. There was no impairment loss recognised on the Rwanda assets.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

21. IMPAIRMENTS AND REVERSALS OF IMPAIRMENTS continued

						Impact on impairment and headroom
	Segment	Recoverableamount	(Impairment)/headroom	Discountrateincrease2,5%	Discountratedecrease2,5%	Growth rateincrease 1%	Growth ratedecrease1%	Overallcash flowsincrease/decreaseby 5%
31 March 2022Rm
Inland business unit South Africa and	Botswana – Cement	8 459	4 892	(2 001)	3 775	921	(720)	423
Coastal business unit South Africa and	Botswana – Cement	2 492	1 594	(566)	1 064	258	(203)	124
Port Elizabeth plant	South Africa andBotswana – Cement	62	(68)	12	65	39	23	3
PPC BotswanaCement	South Africa andBotswana – Cement	168	167	(21)	35	8	(8)	8
PPC Aggregates SA	South Africa –Aggregates, Ash andReadymix	246	144	(45)	67	16	(14)	12
Readymix – GautengRegion	South Africa –Aggregates, Ash andReadymix	244	169	(43)	63	15	(13)	12
Readymix – EastRegion	South Africa –Aggregates, Ash andReadymix	20	7	(3)	6	1	(1)	1
Readymix – WestRegion	South Africa –Aggregates, Ash andReadymix	61	55	(11)	17	4	(3)	3
Readymix – Nelspruit South Africa –	Aggregates, Ash andReadymix	2	3	(3)	5	1	(1)	—
Readymix – Projects	South Africa –Aggregates, Ash andReadymix	19	15	(4)	5	1	(1)	1
Ulula Ash	South Africa –Aggregates, Ash andReadymix	413	394	(66)	98	23	(20)	20
PPC Zimbabwe	Zimbabwe – Cement	4 571	2 066	(1 095)	1 803	145	(304)	232
CIMERWA	Rwanda – Cement	3 071	1 811	(697)	1 016	63	(230)	154

EVENTS AFTER THE REPORTING PERIOD

There were no events after the reporting period that, should they have been taken into account, would have had a material impact on the impairments/impairment reversals accounted for in the current financial year.

22. FINANCE COSTS

	March2023Rm	March2022Rm
Bank and other short-term borrowings	19	19
Interest expense on lease liabilities	6	5
Long-term loans	137	200
Finance costs before time value of money adjustments and interest on penalties	162	224
Interest on penalties	—	7
Time value of money adjustments on rehabilitation and decommissioning provisions	10	9
	172	240
Southern Africa	116	155
Zimbabwe	7	9
Rwanda	49	76
	March2023Rm	March2022Rm
Finance costs as per income statement charge	172	240
Time value of money adjustments on rehabilitation and decommissioning provisions	(10)	(9)
Interest on penalties	—	(7)
Post-retirement benefit	(2)	—

Finance costs paid	160	224
Post-retirement benefit	(2)	—
Interest on penalties	—	(7)
Time value of money adjustments on rehabilitation and decommissioning provisions	(10)	(9)

23. INVESTMENT INCOME

Dividends on collective investment scheme
Interest income on cash and cash equivalents

	March	March
	2023	2022
	Rm	Rm
Dividends on collective investment scheme	8	9
Interest income on cash and cash equivalents	19	1
	27	10

	ER OF SHARES

24. EARNINGS AND HEADLINE EARNINGS PER SHARE

24.1 NUMBER OF SHARES AND WEIGHTED AVERAGE NUMBER OF SHARES

	31 March 2023 31 March 2022
	Shares	Shares
Total shares in issue at the beginning of the year	1 553 764 624	1 593 114 301
Shares repurchased and cancelled during the year	—	(39 349 677)
Total shares in issue at the end of the year	1 553 764 624	1 553 764 624
Treasury shares	(29 977 850)	(14 315 063)
Impact on weighting of shares repurchased	—	3 518 831
Weighted average number of shares for calculation of basic EPS	1 523 786 774	1 542 968 392
Adjusted for:
Shares held by consolidated Safika Trust treated as treasury shares	1 354 347	1 354 347
Weighted average number of shares for calculation of diluted EPS	1 525 141 121	1 544 322 739

Adjusted for:

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

24.3 BASIC EARNINGS/(LOSS)

	Discontinued operations			Continuing operations		Group
		Restated				Restated
	March	March	March	March	March	March
	2023	2022	2023	2022	2023	2022
	Rm	Rm	Rm	Rm	Rm	Rm
Loss for the year	(425)	(56)	(149)	(21)	(574)	(77)
Attributable to:
Shareholders of PPC Ltd	(417)	11	(250)	(71)	(667)	(60)
Non-controlling interests	(8)	(67)	101	50	93	(17)
	(425)	(56)	(149)	(21)	(574)	(77)

24.4 EARNINGS/(LOSS) PER SHARE

	Cents	Cents	Cents	Cents	Cents	Cents
Basic	(27)	1	(16)	(5)	(43)	(4)
Diluted	(27)	1	(16)	(5)	(43)	(4)

24. EARNINGS AND HEADLINE EARNINGS PER SHARE continued

24.5 HEADLINE EARNINGS/(LOSS)

	Discontinued operations		Continuing operations		Group
	March2023Rm	RestatedMarch2022Rm	March2023Rm	March2022Rm	March2023Rm	RestatedMarch2022Rm
Headline earnings/(loss)
Headline earnings/(loss) is calculatedas follows:
Loss for the year	(425)	(56)	(149)	(21)	(634)	(77)
Adjusted for:
Reversal of impairment of property,plant and equipment and intangibleassets (refer to note 21)	—	(1)	(1)	(91)	(1)	(92)
Impairment of property, plant andequipment, intangible assets and rightof-use assets (refer to note 21)	2	—	104	129	106	129
Impairment of goodwill (referto note 21)	—	—	42	—	42	—
Taxation on impairments	—	—	(25)	(11)	(25)	(11)
(Profit)/loss on sale of property, plantand equipment	—	—	9	(5)	9	(5)
Profit on sale of equity-accountedinvestments	—	—	(23)	—	(23)	—
Loss/(profit) on disposal of subsidiaries	400	(158)	—	—	400	(158)
Taxation on profit/loss on sale of assets	—	—	(2)	1	(2)	1
Headline earnings/(loss)	(23)	(215)	(45)	2	(68)	(213)
Attributable to:
Shareholders of PPC Ltd	(16)	(147)	(124)	(47)	(140)	(194)
Non-controlling interests	(7)	(68)	79	49	72	(19)
24.6 HEADLINE EARNINGS/(LOSS) PER SHARE
	Cents	Cents	Cents	Cents	Cents	Cents
Basic	(1)	(10)	(8)	(3)	(9)	(13)

24.6 HEADLINE EARNINGS/(LOSS) PER SHARE

	Cents	Cents	Cents	Cents	Cents	Cents
Basic	(1)	(10)	(8)	(3)	(9)	(13)
Diluted	(1)	(10)	(8)	(3)	(9)	(13)

24. EARNINGS AND HEADLINE EARNINGS PER SHARE continued

24.2 TREASURY SHARES

The difference between earnings and diluted EPS relates to the following treasury shares:

Shares held by consolidated participants of the second broad-based black economic empowerment (BBBEE) transaction Shares issued in terms of the second BBBEE transaction, which was facilitated by means of a notional vendor funding (NVF) mechanism, with the transaction concluding on 30 September 2019. These shares participated in 20% of the dividends declared by PPC during the NVF period. With the exception of the Bafati Investment Trust, entities participating in this transaction are consolidated into the PPC group in terms of IFRS 10 – Consolidated Financial Statements during the transaction term. The group is in the process of winding up these Trusts and SPVs. In the prior year, the shares held by the Bafati and Masakhane Trusts were repurchased by PPC Ltd at 1 cent per share in accordance with the shareholder approval obtained in 2012 when the BBBEE transaction was approved.

Shares held by consolidated BBBEE trusts and trust funding SPVs

In terms of IFRS 10 – Consolidated Financial Statements, certain BBBEE trusts and trust funding SPVs from PPC's first BBBEE transaction are consolidated and, as a result, shares owned by these entities are carried as treasury shares on consolidation. The group is in the process of winding up these Trusts and SPVs. All shares held by the SPVs have been sold in the prior year.

Shares held by consolidated Porthold Trust (Pvt) Ltd

Shares owned by a Zimbabwe employee trust company are treated as treasury shares.

Shares held by the Safika consolidated Management Trust

These shares were issued in 2019 in order to retain and incentivise the Safika key management employees. This transaction was also facilitated through an NVF mechanism.

PPC shares held by PPC Zimbabwe

PPC Zimbabwe owns 986 237 (2022: 986 237) shares in PPC Ltd shares via the Zimbabwe Stock Exchange.

In terms of IFRS requirements, shares held by subsidiaries, consolidated BBBEE entities and employee trusts are treated as treasury shares. As at 31 March 2023, a total of 2% (2022: 1%) of the total shares in issue are thus treated as treasury shares.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

25. STATEMENT OF CASH FLOWS

25.1 CASH GENERATED FROM OPERATIONS

		March	March
	Notes	2023Rm	2022Rm
Cash generated from operations
Profit/(loss) before taxation		93	186
Adjustments for:
Non-cash flow adjustment on the rehabilitation provision included in cost of sales		(32)	(2)
Amortisation and depreciation	2, 3, 5	903	971
Modification of existing leases	3	(2)	—
Loss/(profit) on sale of property, plant and equipment		9	(5)
Profit on sale of equity-accounted investments		(23)	—
IFRS 2 charges		27	30
Fair value and foreign exchange movements	19.1	(69)	(2)
Fair value gain on Zimbabwe financial asset		—	(56)
Fair value loss on Zimbabwe blocked funds	6	32	18
Net monetary loss on hyperinflation in Zimbabwe		131	108
Impairments	21	145	38
Finance costs	22	172	240
Dividends earned	23	(8)	(9)
Interest income	23	(19)	(1)
Other non-cash flow items(a)		11	—
Operating cash flows before movements in working capital		1 370	1 516
Movements in inventories		(359)	(105)
Movements in trade and other receivables		(102)	(90)
Movements in trade and other payables		187	133
Cash generated from operations		1 096	1 454

(a) Other non-cash flow items included a legal provision (R2 million) and restructuring costs (R9 million).

25. STATEMENT OF CASH FLOWS continued

25.3 RECONCILIATION OF CASH FLOWS ARISING FROM FINANCING ACTIVITIES RELATED TO LEASE LIABILITIES

	March2023Rm	March2022Rm
Balance at the beginning of the year	59	60
Current	21	28
Non-current	38	32
Cash flows	(29)	(30)
Repayment of lease liabilities	(29)	(30)
Accrued finance costs	6	5
Finance costs paid(a)	(6)	(5)
Other movements	40	29
Additions	37	37
Disposals	(2)	(7)
Modification of existing leases	2	—
Effects of changes in foreign exchange rates	3	(1)
Balance at the end of the year	70	59
Comprising:
Current	28	21
Non-current	42	38

Comprising:

26. COMMITMENTS

	March	March
	2023	2022
	Rm	Rm
Contracted capital commitments	55	85
Approved capital commitments	172	26
Capital commitments	227	111
Lease commitments not reflected in measurement of lease liabilities	20	7
	247	118
Capital commitments
Southern Africa	72	50
Zimbabwe	92	48
Rwanda	63	13
	227	111
Capital commitments are anticipated to be incurred:
Within one year	216	92
Between one and five years	11	19
	227	111
Lease commitments
This relates to future cash outflows that the group is exposed to that are not reflected in the measurement of the lease liabilities. Thisincludes exposure from variable lease payments for certain leases, lease payments for low-value leases and short-term leases.
Lease commitments
Land and buildings	6	4
Plant equipment	12	—

Lease commitments are anticipated to be incurred:

Land and buildings	6	4
Plant equipment	12	—
Other	2	3
	20	7
Lease commitments are anticipated to be incurred:
Within one year	15	3
Between one and five years	5	4
	20	7

25.2 RECONCILIATION OF CASH FLOWS ARISING FROM FINANCING ACTIVITIES RELATED TO BORROWINGS

	March2023Rm	March2022Rm
Balance at the beginning of the year	1 586	2 628
Current	436	1 645
Non-current	1 150	983
Cash flows	(443)	(970)
Repayment of borrowings	(446)	(1 970)
Proceeds from borrowings raised	3	1 000
Accrued finance costs	154	224
Finance costs paid(a)	(154)	(219)
Other movements	46	(77)
Capitalised transactions costs written off	(4)	(9)
Effects of changes in foreign exchange rates	50	(68)
Balance at the end of the year	1 189	1 586
Comprising:
Current	337	436
Non-current	852	1 150

(a) Included in net cash flow from operating activities.

IANCING ACTIVITIES RELATED TO LEASE LIABILITIES

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

27. OPERATING PROFIT

	March	March
	2023Rm	2022Rm
Operating profit includes:
Amortisation	29	28
Included in cost of sales	5	6
Included in operating costs	24	22
Auditors' remuneration	45	42
Audit fees	43	41
Other services	2	1
Depreciation	874	809
Included in cost of sales	808	518
Included in operating costs	66	291
Distribution costs included in cost of sales	1 559	1 499
Loss on sale of property, plant and equipment	9	4
Lease commitments not reflected in measurement of lease liabilities(a)	4	3
Professional fees relating to restructuring and refinancing project	—	67
Carbon tax	61	53
Staff costs before capitalisation to plant and equipment	1 515	1 401
Southern Africa	1 096	1 068
Zimbabwe	284	227
Rwanda	135	106
Including:
Equity-settled share incentive scheme charge	27	36
Employees' remuneration	1 376	1 270
Staff restructuring costs	12	4
Retirement benefit contributions (refer to note 13)	100	91
	1 515	1 401

(a) This consists of all rental expenses that do not meet the IFRS 16 recognition criteria.

28. FINANCIAL RISK MANAGEMENT

IFRS 9 – FINANCIAL INSTRUMENTS

IFRS 9 – Financial Instruments provides guidance on the classification, measurement and recognition of financial assets and financial liabilities. The standard establishes three measurement categories for financial assets: amortised cost, fair value through other comprehensive income, and fair value through profit or loss. Classification of financial assets into these categories is dependent on the entity's business model (which depicts its objectives with respect to the management of financial assets as a whole) and the characteristics of the contractual cash flows of the specific financial asset.

The group's application of IFRS 9 – Financial Instruments and the group's exposure to financial risks and how these risks could affect the group's future financial performance are described below.

FINANCIAL ASSETS – CLASSIFICATION AND MEASUREMENT

IFRS 9 – Financial Instruments requires all financial assets to be initially recognised at fair value, including directly attributable transaction costs for all financial assets not measured at fair value through profit or loss. Transaction costs for financial assets carried at fair value through profit or loss are expensed in profit or loss.

The group subsequently measures financial assets depending on whether these instruments are debt or equity instruments (from an issuer's perspective).

Debt instruments

Subsequent measurement of financial assets that are considered to be debt instruments from an issuer's perspective, based on (i) the group's business model within which the financial assets are managed, and (ii) the contractual cash flow characteristics of the financial assets (whether the cash flows represent solely payment of principal and interest). Financial assets are measured at amortised cost if they are held within a business model whose objective it is to hold those assets for the purpose of collecting contractual cash flows and those cash flows comprise solely payments of principal and interest (hold to collect).

Financial assets are measured at fair value through other comprehensive income if they are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and those contractual cash flows comprise solely payments of principal and interest (hold to collect and sell). Movements in the carrying amount of these financial assets should be taken through other comprehensive income, except for interest revenue and foreign exchange gains or losses, which are recognised in profit or loss. Where the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss.

28. FINANCIAL RISK MANAGEMENT continued

FINANCIAL ASSETS – CLASSIFICATION AND MEASUREMENT CONTINUED Equity instruments

The group subsequently measures all financial assets, that are considered to be equity instruments from an issuer's perspective, at fair value. Where the group has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as investment income when the group's right to receive payments is established.

FINANCIAL LIABILITIES – CLASSIFICATION AND MEASUREMENT

The group recognises instruments where it has a contractual obligation to (i) deliver cash or another financial asset to another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the group as financial liabilities. Financial liabilities are recognised once the group becomes a party to the contractual rights and obligations in the underlying contracts.

Under IFRS 9 – Financial Instruments requirements, the group measures financial liabilities at either fair value or amortised cost. The group recognises all financial liabilities at amortised cost, unless the group is required to measure the financial liabilities at fair value or has opted to measure the liability at fair value.

All financial liabilities are initially measured at fair value, minus (in the case of financial liabilities not recognised at fair value through profit or loss) transaction costs that are directly attributable to the issuance of the financial instrument.

Financial liabilities that are subsequently measured at amortised cost are measured at the amount recognised on initial recognition minus principal prepayments, plus the cumulative amortisation using the effective interest method. The movements in financial liabilities that are subsequently measured at fair value are recognised in profit or loss, with changes in the fair value of these financial liabilities that are attributable to the group's own credit risk recognised in other comprehensive income. Where these financial liabilities are derecognised, the cumulative gain or loss previously recognised in other comprehensive income is not reclassified from equity to profit or loss. However, it may be reclassified within equity.

DERECOGNITION OF FINANCIAL ASSETS

Financial assets are derecognised when the right to receive cash flows from the asset has expired, the right to receive cash flows has been retained but an obligation to pay them in full without material delay has been assumed, or the right to receive cash flows has been transferred together with substantially all the risks and rewards of ownership.

DERECOGNITION OF FINANCIAL LIABILITIES

Financial liabilities are derecognised when their related obligations are discharged, cancelled or expire. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid is recognised in profit or loss as other income or finance costs.

Financial liabilities are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

FINANCIAL INSTRUMENTS – IMPAIRMENT

IFRS 9 – Financial Instruments requires impairments to be determined based on an ECL model for financial assets carried at amortised cost or fair value through other comprehensive income. PPC group recognises an allowance for either 12-month or lifetime ECLs, depending on whether there has been a significant increase in credit risk. PPC group measures the ECLs in a manner which reflects a probability-weighted outcome, the time value of money and the entity's best available forward looking information. The preceding probability-weighted outcome considers the possibility that a credit loss will occur and the possibility that no credit loss will occur, no matter how low the probability of credit loss occurrence might be. The ECL model applies to financial assets measured at amortised cost and fair value through other comprehensive income, lease receivables and certain loan commitments as well as financial guarantee contracts.

For trade receivables, the group applies the simplified approach permitted by IFRS 9 – Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables. Refer to credit risk management below for further details.

The group's financial instruments consist mainly of borrowings from financial institutions, deposits with banks, local money market instruments, and accounts receivable and payable.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

28. FINANCIAL RISK MANAGEMENT continued

CAPITAL RISK MANAGEMENT

The group manages its capital to ensure that entities in the group will continue as a going concern, while maximising the return to stakeholders through the optimisation of debt and equity. Refer to note 36 for a detailed explanation as to management's going concern considerations.

The capital structure of the group consists of debt (note 14), cash and cash equivalents (note 11), and equity attributable to PPC Ltd shareholders, comprising stated capital (note 12), reserves and retained profit.

A committee, including PPC's senior financial executives, reviews the capital structure on a quarterly basis. As part of this review, the cost of capital and the risks associated with each class of capital are considered. Based on recommendations of the committee, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, repurchase shares currently issued, issue new shares, raise new debt, raise new debt to replace existing debt with different characteristics and/or sell assets to reduce debt in order to maintain the optimal capital structure. The group has complied with the financial covenants of its borrowing facilities during the current and prior years.

The financial covenants relating to the South African facilities are set out in the table below:

Covenant	Required
Interest cover	>3.0x
Gross debt to EBITDA	<2.00x
Gross debt to EBITDA	<2.5x

CIMERWA's debt covenants are summarised below:

Covenant	Required
Net debt to EBITDA	<3.0x
Interest cover ratio	>1.5x

The group monitors capital utilising a number of measures including the gearing ratio for the SA obligor group. The gearing ratio for the SA obligor group is calculated as gross debt divided by SA obligor group EBITDA. The gearing ratio for the SA obligor group at 31 March 2023 is 1.2 times (2022: 1.4 times).

The group's cash and cash equivalents and debt at statement of financial position date were as follows:

	2023	2022
	Rm	Rm
Cash and cash equivalents	424	577
Lease liabilities	(70)	(59)
Borrowings	(1 189)	(1 586)
Total equity	6 342	7 372
Total capital – continuing operations	5 507	6 304
Total capital	5 507	6 304

TREASURY RISK MANAGEMENT

Senior financial executives meet on a regular basis to analyse currency and interest rate exposure and to re-evaluate treasury management strategies against latest economic forecasts. The group's central treasury operation provides South African entities with access to local markets and provides local subsidiaries with the benefit of bulk financing and depositing.

FOREIGN CURRENCY MANAGEMENT

Trade and capital commitments

The group is exposed to exchange rate fluctuations as it undertakes transactions denominated in foreign currencies in the normal course of business. Exchange rate exposures are managed within approved policy parameters utilising forward exchange contracts. Where possible, entities in the group forward cover all material foreign currency commitments unless there is a natural hedge.

28. FINANCIAL RISK MANAGEMENT continued

The group's financial instrument exposure to currency risk stated in millions is summarised below:

	Notes	Botswanapula	USdollar	Zimbabweandollar	Rwandanfranc	Mozambicanmetical	Ethiopianbirr
2023
Financial assets
Trade and other financial
receivables	10	22	—	3 058	3 583	—	—
Cash and cash equivalents	11	18	9	1 541	2 955	4	41
Total financial assets		40	9	4 599	6 538	4	41
Financial liabilities
Long-term borrowings	14	—	—	—	4 809	—	—
Short-term borrowings	14	—	—	—	11 280	—	—
Lease liabilities	3.2	1	—	257	63	—	—
Trade and other financial payables	16	37	—	15 048	10 545	—	—
Total financial liabilities		38	—	15 305	26 697	—	—
Net exposure		2	9	(10 706)	(20 159)	4	41
2022
Financial assets
Trade and other financial
receivables	10	23	—	1 445	5 234	—	—
Cash and cash equivalents	11	24	18	295	8 094	4	—
Total financial assets		47	18	1 740	13 328	4	—
Financial liabilities
Long-term borrowings	14	—	—	—	15 936	—	—
Short-term borrowings	14	—	—	—	10 576	—	—
Lease liabilities	3.2	1	—	27	13	—	—
Trade and other financial payables	16	39	—	2 175	9 361	—	—
Decommissioning and
rehabilitation obligations	13	—	—	569	181	—	—
Total financial liabilities		40	—	2 771	36 067	—	—
Net exposure		7	18	(1 031)	(22 739)	4	—

		I in millions is summarised below:

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

28. FINANCIAL RISK MANAGEMENT continued

SENSITIVITY ANALYSIS ON NET EXPOSURE

A movement in exchange rates of 5%, with all other variables held constant against the significant foreign currencies below, would have the following impact:

		Impact on total comprehensiveincome and shareholders' equity
	Closing rate	5% increase	5% decrease
Significant foreign currency exposure
2023
Botswana pula	1,36	—	—
US dollar	17,80	8	(8)
ZWL dollar	0,02	(10)	10
Rwandan franc	0,02	(16)	16
Mozambican metical(a)	0,28	—	—
Ethiopian birr	0,33	1	(1)
(Decrease)/increase in total comprehensive income		(17)	18
2022
Botswana pula(a)	1,27	—	—
US dollar	14,48	13	(13)
ZWL dollar	0,10	(5)	5
Rwandan franc	0,01	(16)	16
Mozambican metical(a)	0,25	—	—
(Decrease)/increase in total comprehensive income		(8)	8

(a) The amount is less than one million.

INTEREST RATE MANAGEMENT

The group is exposed to interest rate risk arising from fluctuations in financing costs on loans which are at variable interest rates, and interest received on cash and cash equivalents. As part of the process of maintaining a balance between the group's fixed and variable rate borrowings, the interest rate characteristics of new borrowings and the refinancing of existing borrowings are structured according to expected movements in interest rates. The profile of total borrowings is as follows:

Description	Years ofrepayment	2023Rm	2022Rm
Secured
Long-term loans denominated in foreign currencies (refer to note 14)	2024 – 2025	259	377
Long-term loans (refer to note 14)	2024 – 2027	924	999
		1 183	1 376
Unsecured
Short-term loans and bank overdrafts (refer to note 14)	2024	6	210
Unsecured, short-term loans bearing interest at market rates		6	210

SENSITIVITY ANALYSIS – FLOATING INTEREST RATE INSTRUMENTS

All other variables held constant, the amounts below are calculated based on the assumption that the daily average weighted rate cost of funding or interest income received is higher or lower by 100 basis points throughout the year and such rate is applied to the borrowing and cash balances at year-end.

	Weighted	Change in		Impact on total comprehensiveincome and shareholders' equity
	average interest	interest rate	Increase	Decrease
Floating interest rate instruments	rates	basis points	Rm	Rm
ZAR loans	10,7%	100	9	(9)
RWF loans	13,2%	100	3	(3)
Group interest rate sensitivity			12	(12)

The fair value of the swaps at 31 March 2023 is R1 million (2022: nil) in favour of the counterparty and therefore a liability to the group (refer note 15).

Rwanda's local RWF16 billion loan has a weighted average fixed interest rate of 13,2%.

28. FINANCIAL RISK MANAGEMENT continued

FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES The classification of financial assets and liabilities are set out below.

2023
Financial assets
The financial assets carried at fair value are classified into threecategories as reflected below:
Investment in Old Mutual shares on the Zimbabwe Stock
Financial liabilities
2022
Financial assets
Investment in Old Mutual shares on the Zimbabwe Stock
Financial liabilities

		Total carrying
	Notes	amountRm	Fair valueRm	Amortised costRm
2023
Financial assets
The financial assets carried at fair value are classified into threecategories as reflected below:
At amortised cost		1 259	—	1 259
Trade and other financial receivables	10	811	—	811
Cash and cash equivalents	11	424	—	424
Loan receivable	6.2.2	24	—	24
At fair value through other comprehensive income		8	8	—
Investment in Old Mutual shares on the Zimbabwe Stock		2	2	—
Exchange	6.1.3
MRG investment	6.1.4	6	6	—
At fair value through profit or loss		177	177	—
Unlisted collective investment (held for trading)	6.1.1	144	144	—
Cell captive investment	6.1.2	33	33	—
Financial liabilities
At amortised cost		2 325	—	2 325
Long-term borrowings	14	852	—	852
Short-term borrowings	14	337	—	337
Lease liabilities	3.2	70	—	70
Trade and other financial payables	16	1 066	—	1 066
At fair value through profit or loss		1	1	—
Interest rate swap liability	15	1	1	—
2022
Financial assets
At amortised cost		1 332	—	1 332
Trade and other financial receivables	10	755	—	755
Cash and cash equivalents	11	577	—	577
At fair value through other comprehensive income		3	3	—
Investment in Old Mutual shares on the Zimbabwe StockExchange	6.1.3	3	3	—
At fair value through profit or loss		195	195	—
Unlisted collective investment (held for trading)	6.1.1	144	144	—
Zimbabwe blocked funds	6.2.1	32	32	—
Cell captive investment	6.1.3	19	19	—
Financial liabilities
At amortised cost		2 625	—	2 625
Long-term borrowings	14	1 150	—	1 150
Short-term borrowings	14	436	—	436
Finance lease liabilities	3.2	59	—	59
Trade and other financial payables	16	1 250	—	1 250
At fair value through profit or loss		—	—	—
Interest rate swap liability	15	—	—	—

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

28. FINANCIAL RISK MANAGEMENT continued

CREDIT RISK MANAGEMENT

Credit risk is the risk of financial loss to the group if a counterparty to a financial instrument fails to meet its contractual obligations. The potential exposure to credit risk is represented by the carrying amounts of trade and other receivables, cash and cash equivalents, short-term cash investments and Zimbabwe blocked funds.

CREDIT RISK POLICY: INVESTMENTS, CASH AND CASH EQUIVALENTS AND DERIVATIVES

The group's policy is to strictly limit exposure to individual counterparties by reference to published short-term and long-term credit ratings from recognised credit rating agencies. The group invests in high-quality investments with reputable service providers.

The group's exposure and the credit ratings of its counterparties are continuously monitored. The policy requires diversification of credit exposures among these financial institutions and defines acceptable daily settlement limits. Individual limits for counterparties whose ratings fall within the credit rating guidelines of the group's policy are approved by the CFO, and for counterparties with ratings outside of the policy guidelines, the limits must be approved by the ARCC.

SECURITY HELD

For some receivables, the group may obtain security in the form of guarantees, deeds of undertaking or letters of credit, which may be called upon if the counterparty is in default under the terms of the agreement.

SUMMARY OF THE ASSUMPTIONS UNDERPINNING THE GROUP'S ECL MODEL FOR CASH AND CASH EQUIVALENTS IS AS FOLLOWS:

Under the general approach, at each reporting date, the group recognises a loss allowance based on either 12-month ECLs or lifetime ECLs, depending on whether there has been a significant increase in credit risk on the financial instrument since initial recognition. The changes in the loss allowance balance are recognised in profit or loss as an impairment gain or loss. Given the maturity profile of the group's bank deposits and current accounts that are classified as financial assets measured at amortised cost, of three months or less, the 12-month and lifetime ECLs are not expected to be materially different. Based on these facts, the general approach has been deemed most appropriate for calculating the ECL.

Significant assumptions considered within the ECL model:

• The model only considers positive cash balances with banking institutions, ie gross of overdrafts
• The model also excludes petty cash as this is assumed to be petty cash on hand
• Short-term bank deposits have a maturity of three months or less
• Implied Moody's credit ratings are a suitable proxy for Moody's ratings. Due to the fact that not all banking institutions have Moody's ratings, we estimated implied Moody's ratings
• Banking institutions with same implied Moody's credit rating belong to a homogenous credit risk grouping, ie have the same probability of default etc
• Moody's one-year default rates are a suitable proxy for short-term deposit default rates

Using the probability of default approach, the ECLs are a probability-weighted estimate of the present value of estimated cash shortfalls – ie the weighted average of credit losses, with the respective risks of default occurring used as the weights. For this purpose, the following parameters must be estimated:

• Probability of default (PD) estimate of the likelihood of default over a given time horizon
• Loss given default (LGD) estimate of the percentage loss arising in case a default occurs at a given time
• Exposure at default (EAD) estimate of the exposure at a future default date, taking into account expected changes in the exposure after the reporting date, including repayments of principal and interest, whether scheduled by contract or otherwise, expected drawdowns on committed facilities and accrued interest from missed payments
• Discount rate (r) rate used to discount an expected loss to a present value at the reporting date

For the group, the exposure at default is assumed to be 100% of all the positive balances outstanding at year-end as shortterm deposits have similar characteristics to loans that are not backed by collateral. The effect of discounting the ECLs is not expected to have a material impact on the ECLs given the short-term maturity profile of the cash and cash equivalent balances.

The group has limited historical information of the probability of default for the respective banking institutions in which it holds bank deposits. Therefore, it is reasonable to use external credit information from one of the three major rating agencies to estimate the probability of default. The group also compares the banking institution's credit rating to that of the sovereign rating (creditworthiness of a country) and uses the lower of the two, ie if we have a bank that has Aa credit rating, but its country (that is last resort guarantor) has Ba credit rating, it is common practice to use default rates for Ba credit rating as opposed to the Aa credit rating.

28. FINANCIAL RISK MANAGEMENT continued

SUMMARY OF THE ASSUMPTIONS UNDERPINNING THE GROUP'S ECL MODEL FOR CASH AND CASH EQUIVALENTS IS AS FOLLOWS: CONTINUED

The group has limited historical information of the portion of the outstanding balance that would not be recoverable in the case of a default at a given time. In estimating the LGD, the group makes reference to regulatory guidance provided to insurers by the Prudential Authority. The Financial Soundness Standards (FSIs) are designed to ensure that insurers can meet policyholder obligations by holding own funds of sufficient quality and quantity to absorb significant unforeseen losses arising from the risks associated with an insurer's activities.

"Pari-passu" is a Latin phrase meaning "equal footing" that describes situations where two or more assets, securities, creditors, or obligations are equally managed without preference. The cash and cash equivalents would rank in the same priority as other unsecured debts owed by banks to all creditors, should the financial institutions enter into bankruptcy proceedings (ie the group would be treated like other unsecured creditors with regards to all debts owed by the bank on bankruptcy). The trustee would repay the group the same fractional amount as other creditors at the same time. Therefore, it is reasonable for the group to use LGD rates of 45% and above in estimating ECLs.

ECLs must reflect an unbiased and probability-weighted estimate of credit losses over the expected life of the financial instrument (ie the weighted average of credit losses with the respective risks of a default occurring as the weights).

The standard makes it clear that when measuring ECLs, in order to derive an unbiased and probability-weighted amount, an entity needs to evaluate a range of possible outcomes. The group does not need to identify every possible scenario, it just needs to take into account the possibility that a credit loss could occur, no matter how low that probability is.

A practical method that can be used to determine a range of possible outcomes is scenario analysis. Scenario analysis is a process of analysing future events by considering alternative possible outcomes. Thus, scenario analysis, which is one of the main forms of projection, will not only show the most likely ECL, but it will present several alternative ECLs. For the group, the scenario analysis will mainly comprise flexing two main variables in the ECL model for a range of values. The first variable that the group varied is the LGD. As discussed above, the group can use LGD values between 45% and 100% in performing the scenario analysis.

The second variable that the group varied is the PD. The reports supplied by the ratings agencies contain a range of historical PDs that can be used to vary the PD variable.

Due to significant judgement and specialised statistical knowledge required to estimate the probability of each outcome occurring, it is apparent that trying to estimate the probability of each outcome in the scenario analysis would require exhaustive search for information and this is not the objective that is intended in the standard. The guidance from the standard requires that the group use information available for financial reporting purposes, which is considered to be available without undue cost or effort. Assuming that each outcome has an equal chance of occurrence would satisfy the need to determine a probability-weighted ECL.

Historical information should be used as a starting point from which adjustments are made to estimate ECLs on the basis of reasonable and supportable information that incorporates both current and forward looking information.

In considering whether historical credit losses should be adjusted, the group considered various items, including: • The historical data which has been used, capture ECLs that are through-the-cycle (ie estimates based on historical credit loss events and

• experience over the entire economic cycle)
• history

• The period of time over which its historical data has been captured and the corresponding economic conditions represented in that

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

28. FINANCIAL RISK MANAGEMENT continued

CREDIT RISK POLICY: TRADE AND OTHER RECEIVABLES

Trade receivables comprise a large, widespread customer base and credit risk arises from the possibility that customers may not be able to settle their obligations as agreed. To manage this risk, the granting of credit is controlled by application and account limits and the group only deals with creditworthy customers supported by appropriate collateral. The group annually re-evaluates counterparty limits and the financial reliability of its customers.

	2023Rm	2022Rm
Net trade receivables comprise	758	686
Trade receivables that are neither past due nor impaired	716	568
Trade receivables that would otherwise be impaired whose terms have been renegotiated	—	2
Trade receivables that are past due but not impaired	42	116
Loss allowance
Balance at the beginning of the year	79	126
ECL through profit or loss	11	(46)
Translation differences	1	(1)
Balance at the end of the year	91	79

	31 March2023ECLRm	31 March2023ECL%	31 March2022ECLRm	31 March2022ECL%
The ageing of the ECL at the reporting date
Current due	5	2,4	—	—
1 – 30 days	7	1,6	11	3,0
31 – 60 days	9	6,9	3	5,3
61 – 120 days	14	45,1	2	17,3
120 – 150 days	3	73,5	3	35,0
Greater than 150 days	53	97,9	60	73,7
Total loss allowance	91		79

SUMMARY OF THE ASSUMPTIONS UNDERPINNING THE GROUP'S ECL MODEL FOR TRADE AND OTHER RECEIVABLES

For trade receivables that do not contain a significant financing component, the loss allowance should be measured at initial recognition and throughout the life of the receivable at an amount equal to lifetime ECL. As a practical expedient, a provision matrix may be used to estimate ECL for these financial instruments.

The group monitors the ageing of its receivables using the following buckets:

• Current
• Overdue 1 30 days
• Overdue 31 60 days
• Overdue 61 90 days
• Overdue 91 120 days
• Overdue 121 150 days
• Overdue 150 days and more

The ageing of PPC's receivables represents the overdue profile, meaning that payment terms are considered. For example, on an account with 60 days' payment terms, the current bucket will contain invoices that are one to 60 days old, but they are still not overdue.

28. FINANCIAL RISK MANAGEMENT continued

SIGNIFICANT ASSUMPTIONS CONSIDERED WITHIN THE ECL MODEL

1. The population of receivables within each portfolio is homogenous, ie the customers are of similar size and industry, the nature or

invoices are similar, etc

The receivables do not contain significant financing components (eg they do not bear interest) The model assumes that the amount of receivable is fully unrecoverable, meaning if it was not paid, the loss is 100% (in other words, LGD = 100%). However, the model allows for custom LGD for a specific customer/entity/portfolio. Judgement and evidence are required when determining LGD lower than 100%

CALCULATING THE ECL USING A PROVISION MATRIX

• ECL formula: ECL = EAD x LGD x PD, where:
• EAD = Exposure at default positive amount of current receivables in a particular bucket
• LGD = Loss given default percentage unrecoverable loss given the default occurs
• PD = Probability of default

The group's point of default is determined on a CGU level, considering applicable payment terms.

ADJUSTING FOR FORWARD LOOKING ESTIMATES

The adjustment for forward looking information is represented by a factor by which historical PD is multiplied to obtain final PD. The final PD should not exceed 100%. IFRS 9 – Financial Instruments does not explicitly provide detailed context on how to calculate adjustments for forward looking information.

The group utilised the same methodology to determine the ECL on trade receivables in all jurisdictions.

Loan receivable
Cash and cash equivalents
Trade and other receivables

	Notes	2023Rm	2022Rm
Trade and other receivables	10	811	755
Cash and cash equivalents	11	424	577
Loan receivable	6.2.2	24	—
Maximum credit risk exposure		1 259	1 332

The analysis per credit rating level is assessed below. These ratings were obtained from Standard and Poor's and Moody's and these relate only to cash and cash equivalents.

Due to the long-term nature of the loan receivable, judgement is required in determining the recoverability and valuation of the loan. The receivable is assessed for impairment in terms of IFRS 9 – Financial Instruments which is based on the premise of providing for ECLs. In determining the ECL, management considered the credit risk and probability of default associated with the borrower as well as the cash flow forecast. Based on the assessment performed and the cash flow forecast, the borrower is expected to generate sufficient cash flow in the foreseeable future in order to settle the amounts due to the group, as such no ECL was recognised on the receivable.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

28. FINANCIAL RISK MANAGEMENT continued

ADJUSTING FOR FORWARD LOOKING ESTIMATES CONTINUED

			2023		2022
Country	Counterparty	Creditratings	Rating definitions	Creditratings	Rating definitions
	South Africa First National Bank/Rand Merchant Bank	Ba2	Non-investment	Ba2	Non-investment
	Standard Bank	Ba3	Non-investment	Ba2	Non-investment
	Nedbank	Ba2	Non-investment	Ba2	Non-investment
Botswana	First National Bank	Ba2	Non-investment	Ba2	Non-investment
	Barclays	Ba2	Non-investment	Ba1	Non-investment
	Stanbic	Ba3	Non-investment	Ba3	Non-investment
Zimbabwe	Stanbic	Ba3	Non-investment	Ba3	Non-investment
	PTA Bank(a)	N/A	N/A	N/A	N/A
Rwanda	Kenya Commercial Bank (KCB)	B2/NP	Highly speculative	B2/NP	Highly speculative
	PTA Bank(a)	N/A	N/A	N/A	N/A
	East African Development Bank(a)	N/A	N/A	N/A	N/A
Ethiopia	Awash International Bank	Caa2	Highly speculative	N/A	N/A

(a) Credit ratings are not available for these institutions.

ECL ON CASH AND CASH EQUIVALENTS

	2023Rm	2022Rm
Zimbabwe	6	3
Ethiopia(a)	2	—
Rwanda	3	1
South Africa(b)	1	—
	12	4

(a) This exposure is as a result of the proceeds from the sale of the investment in Habesha, which are in an Ethiopian birr account.

(b) This exposure is as a result of a foreign-denominated bank account.

COLLATERAL

The group holds collateral against trade receivables in order to reduce credit risk. Although collateral is held, the group's policy is to establish that credit granted is within the customer's capacity to repay the amount, rather than to rely on the collateral held against the amount due. Estimates of the fair value of collateral are based on the value at the time of providing credit to the customer.

	2023Rm	2022Rm
Fair value of collateral held	186	184

COLLATERAL HELD COMPRISES:

Security/collateral	Terms and conditions associated with use of collateral
Bank guarantees	The group will on occasion accept a bank guarantee as security from a debtor. In such instance, the bankundertakes to accept liability for the debt of the debtor to a limited amount. As at 31 March 2023, managementconsidered R24 million (31 March 2022: R22 million) to be a reasonable estimate of the collateral held in the formof bank guarantees.
Notarial bond	The group takes notarial bonds over specified and, in certain instances, all the movable property of certain debtors.This gives the group a preference to the proceeds of such movable property of the debtor on the liquidationor sequestration of the debtor. As at 31 March 2023, management considered nil (31 March 2022: nil) to be areasonable estimate of the collateral held in the form of notarial bonds.
Mortgage bond	The group may from time to time register a continuous covering mortgage bond over the immovable property of adebtor. This gives the group the right to execute against the property of the debtor if the debtor defaults. As at 31March 2023, management considered R2 million (31 March 2022: R2 million) to be a reasonable estimate of thecollateral held in the form of mortgage bonds.
Deed of suretyship	The group will on occasion request a deed of suretyship from the shareholders or directors of the debtor. In suchinstance, the shareholders or directors assume personal liability for the debt provided to the debtor. As at 31 March2023, management considered R159 million (31 March 2022: R159 million) to be a reasonable estimate of thecollateral held in the form of deeds of suretyship.
Cross-company guarantee	At times, the group will request a company within the same group of companies as the debtor to be a guarantor forthe obligation of the debtor. In such instance, should the debtor default on the obligation, the guarantor will makepayment for the outstanding balance of the debtor. As at 31 March 2023, management considered R1 million(31 March 2022: R1 million) to be a reasonable estimate of the collateral held in the form of cross-companyguarantees.

28. FINANCIAL RISK MANAGEMENT continued

LIQUIDITY RISK MANAGEMENT

Liquidity risk is the risk of the group being unable to meet its payment obligations when they fall due. The group manages liquidity risk centrally by maintaining an appropriate balance between long-term and short-term debt, ensuring borrowing facilities are adequate to meet its liquidity requirements at all times and by monitoring forecast and actual cash flows.

The group had committed borrowing facilities of R2,2 billion and utilised 53,3% (2022: 70,9%) of these facilities at 31 March 2023. At year-end, R1 billion of borrowing facilities remain unutilised.

Banking facilities are only entered into with leading financial institutions.

The following table details the group's remaining contractual maturity for its financial liabilities. The table has been prepared based on undiscounted cash flows at the earliest date on which the group can be required to pay. The amounts include interest accrued to the payment date.

2023

	<1 yearRm	1 – 5 yearsRm	>5 yearsRm	TotalRm
2023
Total borrowings	338	853	—	1 191
Trade and other financial payables	1 259	—	—	1 259
Lease liability	35	47	1	83
	1 632	900	1	2 533
2022
Total borrowings	438	1 169	—	1 607
Trade and other financial payables	432	—	—	432
Lease liability	33	43	—	76
	903	1 212	—	2 115

2022

Refer to note 14 for borrowings details.

METHODS AND ASSUMPTIONS USED BY THE GROUP IN DETERMINING FAIR VALUES The estimated fair value of financial instruments is determined at discrete points in time by reference to the mid-price in an active market, wherever possible. Where no such active market exists for the particular asset or liability, the group uses valuation techniques to arrive at fair value, including the use of prices obtained in recent arm's length transactions, discounted cash flow analysis and other valuation techniques commonly used by market participants.

The fair value of unlisted collective investment is valued using the closing unit price at year-end. Further details are disclosed in note 6.1.2.

The fair value of loans receivable and payable is based on the market rates of the loan and the recoverability.

The fair values of cash and cash equivalents, trade and other financial receivables and trade and other financial payables approximate the respective carrying amounts of these financial instruments because of the short period to maturity.

The fair value is determined as a level 3 on the fair value hierarchy because of the unobservable inputs used, mainly as a result of the judgements made with respect to the credit risk of counterparties.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

28. FINANCIAL RISK MANAGEMENT continued

FAIR VALUE HIERARCHY DISCLOSURES

				Carrying amount (by measurement basis)
		Amortised	Fair value	Fair value	Fair value
		cost	Level 1	Level 2	Level 3	Total
	Notes	Rm	Rm	Rm	Rm	Rm
2023
Financial assets
At amortised cost
Trade and other financial receivables	10	811	—	—	—	811
Cash and cash equivalents	11	424	—	—	—	424
Loan receivable	6.2.2	—	—	—	24	24
At fair value through othercomprehensive income
Investment in Old Mutual shares on theZimbabwe Stock Exchange	6.1.3	—	—	2	—	2
MRG investment	6.1.4	—	—	—	6	6
At fair value through profit or loss
Unlisted collective investments at fair
value (held for trading)	6.1.1	—	—	144	—	144
Cell captive investment	6.1.2	—	—	—	33	33
Financial liabilities
At amortised cost
Long-term borrowings	14	852	—	—	—	852
Short-term borrowings	14	337	—	—	—	337
Lease liabilities	3.2	70	—	—	—	70
Trade and other financial payables	16	1 066	—	—	—	1 066
At fair value through profit or loss
Interest rate swap liability	15	—	—	1	—	1
2022
Financial assets
At amortised cost
Trade and other financial receivables	10	755	—	—	—	755
Cash and cash equivalents	11	577	—	—	—	577
At fair value through other
comprehensive income
Investment in Old Mutual shares on the
Zimbabwe Stock Exchange	6.1.3	—	—	3	—	3
At fair value through profit or loss
Unlisted collective investments at fair
value (held for trading)	6.1.1	—	—	144	—	144
Zimbabwe blocked funds	6.2.1	—	—	—	32	32
Cell captive investment	6.1.2	—	—	—	19	19
Financial liabilities
At amortised cost
Long-term borrowings	14	1 150	—	—	—	1 150
Short-term borrowings	14	436	—	—	—	436
Finance lease liabilities	3.2	59	—	—	—	59
Trade and other financial payables	16	1 256	—	—	—	1 256
At fair value through profit or loss
Interest rate swap liability	15	—	—	—	—	—

28. FINANCIAL RISK MANAGEMENT continued

FAIR VALUE HIERARCHY DISCLOSURES CONTINUED Level 1 – financial assets and liabilities that are valued accordingly to unadjusted market prices for similar assets and liabilities. Market prices in this instance are readily available and the price represents regularly occurring transactions which have been concluded on an arm's length transaction.

Level 2 – financial assets and liabilities are valued using observable inputs, other than the market prices noted in the level 1 methodology, and make reference to pricing of similar assets and liabilities in an active market or by utilising observable prices and market-related data.

Level 3 – financial assets and liabilities that are valued using unobservable data, and requires management's judgement in determining the fair value. Refer to note 6 for quantitative information and significant assumptions on the unobservable inputs used to determine fair values for financial assets and liabilities respectively.

This note has been refined from that reported in the prior period to only include financial instruments held at fair value.

Level 3 sensitivity analysis

Financial instrument	Valuation technique	Key unobservableinputs	Sensitivity %	Carrying value2023 (Rm)	Increase ordecrease (Rm)
Zimbabwe blockedfunds	US$:ZWL$ exchangerate	Credit risk adjustmentof 100%	1% higher and1% lower	—	—
Cell captive investment Net asset value		Cash and cashequivalents, investmentin unit trusts, insurancefund liabilities	N/A	33	—
MRG investment	Net asset value	Cash and cashequivalents, investmentin unit trusts, insurancefund liabilities	N/A	6	—
Loan receivable	The fair value hasbeen determinedbased on the presentvalue adjusted forcounterparty's creditrisk	Expected future cashflows adjusted for creditrisk	N/A	24	—
Movements in level 3 financial instruments				2023Rm	2022Rm
Financial assets at fair value through profit or loss
Balance at the beginning of the period				51	114
New financial assets recognised	30	—
Fair value adjustments	89	3
Fair value adjustment – credit risk	(107)	46
Translation differences	—	(4)
Repayments				—	(108)
Balance at the end of the period				63	51

Financial assets at fair value through profit or loss

Remeasurements are recorded in fair value adjustments on financial instruments in the statement of profit or loss.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

29. RELATED-PARTY TRANSACTIONS

Parties are considered to be related if one party directly or indirectly has the ability to control or jointly control the other party, or exercise significant influence over the other party, or is a member of the key management of PPC group. In particular, this relates to associates, as transactions with the consolidated subsidiaries are eliminated. PPC regards non-executive directors, executive directors, the executive committee and prescribed officers to be key management. In the current year, in the ordinary course of business, PPC Group Services (Pty) Ltd, a subsidiary of PPC Ltd, entered into various transactions with PPC Barnet, an associate of PPC Ltd. The effect of these transactions is included in the financial performance and results of the group. No impairment of receivables related to the amount of outstanding balances is required.

The following table shows management fees and the related receivable balance with the related parties that are included in the group's annual financial statements:

	31 March 2023	31 March 2022
	Rm	Rm
PPC Barnet Cement Company	24	—

29.1 EXECUTIVE DIRECTORS AND PRESCRIBED OFFICERS' REMUNERATION

Remuneration paid to executive directors and prescribed officers for the 12 months ended 31 March 2023.

	Basic salaryR000	Retirementand medicalcontributionsR000	CarallowanceR000	Short-termincentivesR000	Long-termincentives(a)R000	Other(b)R000	TotalR000
Executive directors	16 141	—	300	8 572	2 991	360	28 364
R van Wijnen	10 213	—	300	6 104	2 991	360	19 968
B Berlin	5 928	—	—	2 468	—	—	8 396
Prescribed officers	6 580	1 079	907	3 122	—	116	11 804
NL Lekula	3 481	510	540	1 466	—	5	6 002
M Ramafoko	3 099	569	367	1 656	—	111	5 802

Remuneration paid to executive directors and prescribed officers for the 12 months ended 31 March 2022.

	Basic salaryR000	Retirementand medicalcontributionsR000	CarallowanceR000	CashincentivesR000	Short-termincentivesR000	OtherR000	TotalR000
Executive directors	15 681	—	114	—	8 777	358	24 930
R van Wijnen	9 981	—	114	—	8 777	358	19 230
B Berlin	5 700	—	—	—	—	—	5 700
Prescribed officers	6 460	1 061	637	2 366	4 606	116	15 246
NL Lekula	3 534	552	270	1 283	2 486	5	8 130
M Ramafoko	2 926	509	367	1 083	2 120	111	7 116

(a) Retention shares vested on 1 October 2022.

(b) "Other" includes housing and cellphone allowances.

29. RELATED-PARTY TRANSACTIONS continued

29.2 NON-EXECUTIVE DIRECTORS' REMUNERATION Remuneration paid to non-executive directors for the 12 months ended 31 March 2023.

Committee

	BoardfeesR000	ChairmanfeesR000	SpecialmeetingsR000	ARCCR000	Remunerationand talent(a)R000	Social,ethics andtransformationR000	Strategy andinvestmentR000	TotalR000
PJ Moleketi	—	1 279	107	—	27	—	—	1 413
AC Ball(b)	154	—	43	—	—	—	52	249
N Gobodo	311	—	64	155	—	215	—	745
BM Hansen	311	—	85	—	—	106	106	608
K Maphisa	311	—	85	—	—	106	106	608
NL Mkhondo	311	—	192	155	216	—	—	874
CH Naude	311	—	213	—	106	—	215	845
DL Smith(c)	157		43	—	—	—	54	254
MR Thompson	311	—	170	325	—	—	106	912
	2 177	1 279	1 002	635	349	427	639	6 508

Remuneration paid to non-executive directors for the 12 months ended 31 March 2022.

Committee

	Board	Chairman	Special			Social and		Strategyand
	feesR000	feesR000	meetingsR000	ARCCR000	RemunerationR000	R000	ethics NominationR000	investmentR000	TotalR000
PJ Moleketi	—	1 222	43	—	—	—	—	—	1 265
AC Ball	296	—	21	—	—	—	—	103	420
N Gobodo	296	—	64	140	—	209	—	—	709
BM Hansen	151	—	—	—	—	52	—	52	255
K Maphisa	296	—	21	—	—	103	—	103	523
NL Mkhondo	296	—	64	140	209	—	36	—	745
T Moyo	145	—	21	—	51	—	36	—	253
CH Naude	296	—	21	—	103	—	—	209	629
MR Thompson	296	—	107	277	—	—	—	103	783
	2 072	1 222	362	557	363	364	72	570	5 582

(a) The remuneration committee and nominations committee were combined into the remuneration and talent committee with effect from 1 October 2021. (b) Resigned 30 September 2022. (c) Appointed 1 October 2022.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

30. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES

It is the policy of PPC not to adopt new standards before they become effective. The following standards and improvements are in issue but not yet effective. These revised standards and interpretations will be adopted by PPC when they become effective.

Revised statements in issue notyet effective:	Effective datereporting period onor after	Possible implication on PPC
For adoption during FY24
IAS 1 – Presentation ofFinancial Statements –classification of liabilities ascurrent or non-current	1/1/2023	Narrow-scope amendments to IAS 1 to clarify how to classify debt andother liabilities as current or non-current. The impact of the amendment isimmaterial.
IFRS 17 – Insurance contracts	1/1/2023	The impact of the new standard is immaterial.
Disclosure of accounting policies– amendments to IAS 1 and IFRSPractice Statement 2	1/1/2023	The amendment seeks to clarify the identification of material accountingpolicies to enable users to disclose material accounting policies ratherthan significant accounting policies. The impact of the amendment isimmaterial.
Definition of accountingestimates – amendments toIAS 8	1/1/2023	Definition of change in accounting estimates: The amendment replacesthe definition of changes in accounting estimates to clarify the distinctionbetween changes in accounting estimates and changes accounting policies.The impact of the amendment is immaterial.
Deferred tax related to assetsand liabilities arising from asingle transaction – amendmentsto IAS 12	1/1/2023	The amendment clarifies the appropriate use of the exemptionfrom recognising deferred tax on initial recognition of leases anddecommissioning obligations. The impact of the amendment is immaterial.
For adoption during FY25
Amendment to IFRS 16 – Leaseson sale and leaseback	1/1/2024	These amendments include requirements for sale and leaseback transactionsin IFRS 16 to explain how an entity accounts for a sale and leaseback afterthe date of the transaction. Sale and leaseback transactions where someor all the lease payments are variable lease payments that do not dependon an index or rate are most likely to be impacted. The impact of theamendment is immaterial.
Amendment to IAS 1 –non- current liabilities withcovenants	1/1/2024	These amendments clarify how covenants should be treated by an entity,within twelve months after the reporting period, with the aim to improveinformation an entity provides relating to these liabilities. The impact ofthe amendment is immaterial.

31. EQUITY-ACCOUNTED INVESTMENTS

The investment in the associate is carried at cost and adjusted for post-acquisition changes in the group's share of net assets of the associate less any impairment. Management accounts together with the financial statements are used to align earnings in the equityaccounted investment with PPC's year-end for the associate that has a December financial year-end. Any long-term debt interests, which in substance form part of the group's net investment in the associate, are also included in the total carrying value of the associate. Losses of an associate in excess of the group's interest in that associate are not recognised, unless the group has incurred legal or constructive obligations or made payments on behalf of the associate.

Where a group entity transacts with an associate of the group, unrealised profits and losses are eliminated to the extent of the group's interest in the relevant associate.

Carrying value, including loans advanced

Name	Nature ofbusiness	Principalplace ofbusiness	Shareholding2023%	Shareholding2022%	Financialyear-end	2023Rm	2022Rm
Incorporated in DRC
PPC Barnet	Cementmanufacturer DRC		59	—	March	—	N/A
Incorporated inEthiopia
Habesha (a)	Cementmanufacturer	Ethiopia	—	37,67	December	—	—
						—	—

(a) The investment was disposed of during the year.

All the conditions precedent to the binding long-form agreements for the restructure of the senior lender debt were met on 29 April 2022, from which date PPC lost control of PPC Barnet and hence ceased to consolidate PPC Barnet. Refer to note 20.

As at 31 March 2023, PPC Barnet is now equity accounted. On 29 April 2022, an equity-accounted investment in associate was recognised at a cost of zero. For the foreseeable future, any share of losses will be recognised in profit and loss and any share of profits will also be recognised to the net investment, but subsequently impaired.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

31. EQUITY-ACCOUNTED INVESTMENTS continued

The group sold 100% of its stake in Habesha for US$900 000 on 29 May 2022. A profit of R23 million was realised as a result of the sale. The investment in Habesha was zero at 31 May 2022 due to the recognition of PPC's share of losses. The cumulative unrecognised share of losses at 31 March 2023 is:

	PPC Barnet		Habesha
	31 March 2023Rm	31 March 2022Rm	31 March 2023Rm	31 March 2022Rm
Unrecognised net loss for March 2023	(274)	—	—	—
Unrecognised net loss for March 2022	—	—	(256)	(256)
Unrecognised net loss for March 2021	—	—	(238)	(238)
Total comprehensive loss	(274)	—	(494)	(494)

	PPC Barnet		Habesha
	31 March2023Rm	31 March2022Rm	31 March2023Rm	31 March2022Rm
Key financial information of material associates
Revenue	1 171	—	—	355
Loss for the year	(464)	—	—	(679)
Other comprehensive income	—	—	—	—
Total comprehensive loss	(464)	—	—	(679)
Non-current assets	2 603	—	—	935
Current assets	724	—	—	191
Non-current liabilities	3 346	—	—	1 598
Current liabilities	812	—	—	633
Net assets	(831)	—	—	(1 105)

32. ADDITIONAL DISCLOSURE

ZIMBABWE INDIGENISATION

In March 2008, Zimbabwe passed the Indigenisation and Economic Empowerment Act, which required all foreign-owned companies, including those in the manufacturing sector like PPC Zimbabwe, to submit indigenisation plans for local Zimbabweans. PPC Zimbabwe accordingly submitted implementation plans and associated term sheets to the National Indigenisation and Economic Empowerment Fund in August 2012 and entered into indigenisation transactions with various parties, including an employee share option scheme, in terms of which 29,6% of PPC Zimbabwe shares have been allotted to the indigenisation partners.

All the indigenisation transactions are subject to notional vendor facilitation (NVF) arrangements. Central to the operation of this NVF arrangement is the concept of an "NVF balance", which is defined in the transaction documents as meaning "the full extent of the notional vendor facilitation outstanding from time to time, calculated in accordance with the agreements". The initial NVF balance was fixed in US dollars. The currently applicable NVF balance has been escalated by interest and reduced by a percentage of dividends declared in accordance with the methodology set out in the transaction documents.

During 2019, the Zimbabwe government issued Statutory Instrument 33 (SI33) that provides as follows:

"that Real Time Gross Settlement system balances expressed in the United States dollar (other than those referred to in section 44C(2) of the principal Act), immediately before the effective date, shall from the effective date be deemed to be opening balances in RTGS dollars at par with the United States dollar and (d) for accounting and other purposes (including the discharge of financial or contractual obligations), all assets and liabilities that were, immediately before the effective date, valued and expressed in United States dollars (other than assets and liabilities referred to in section 44C(2) of the principal Act) shall on and after the effective date be deemed to be values in RTGS dollars at a rate of one-to-one to the United States dollar."

Should the NVF balances have been converted to ZWL (ie RTGS) when SI33 was issued, the result would have been that the NVF balance would have reduced much faster than anticipated by PPC due to dividends being declared in US dollars.

32. ADDITIONAL DISCLOSURE continued

PPC obtained a legal opinion on this matter, which legal opinion has been confirmed by a senior advocate in Zimbabwe. The legal opinion confirms that the NVF balance is a notional balance, which functions as a mere reference amount in the agreement and, accordingly, cannot and does not convert from a (notional) US$ amount to a (notional) ZWL amount. PPC therefore continues to calculate the NVF balance using the US$ as the reference currency. The non-controlling interests for the indigenisation parties will only be recognised when the shares allocated to the participants cease to incur any restrictions and become exposed to the full risks and rewards associated with ownership. The use of US$ as a reference currency does not result in the risk and rewards having passed to the indigenisation parties and accordingly, PPC does not account for any non-controlling interests in relation to the indigenisation transaction.

Subsequent to the year-end, PPC Ltd and PPC Zimbabwe issued a valuation report to the relevant indigenisation parties. The parties had five business days to accept or dispute the valuation report, but two parties asked for an extension until 5 July 2023 to reconstitute their board of trustees in terms of their constitutive documents. The request for the extension was granted and accordingly PPC Zimbabwe has not had a response on whether the valuation report has been accepted or disputed.

Based on the valuation of PPC Zimbabwe that was submitted to the relevant indigenisation parties, none of the indigenisation parties' shares will vest as the NVF balances exceed their share of the value of PPC Zimbabwe. Accordingly, PPC Zimbabwe will have the right to repurchase the shares for US$ one cent each and subsequently cancel such shares.

HYPERINFLATION IN ZIMBABWE

In determining the hyperinflation adjustments used to express the results, cash flows and financial position of PPC Zimbabwe in terms of the measuring units current at reporting date, the official ZWL CPI, as published by the Reserve Bank of Zimbabwe (RBZ) and ZIMSTAT was used up and until 31 January 2023 (last month in which the official index was published), as the appropriate general price index (13 918.7).

However, since February 2023, the RBZ adopted a blended inflation rate as the country's inflation reference. Blended inflation results from the combining of the inflation for prices that are quoted in US$ and inflation for prices quoted in ZWL, to get one inflation rate that reflects the true economic fundamentals in a multi-currency economy. The RBZ and ZIMSTAT, having adopted the blended inflation rate, ceased publishing the ZWL CPI from February 2023. The blended CPI, from September 2022 to January 2023, was tracking the growth rates for the ZWL CPI. This could be attributable to a high volume of ZWL transactions in the economy at that time. The blended CPI, however, shows negative growth in February 2023 and 0,1% growth in March 2023, which is not reflective of economic trends on the ground, as general ZWL prices rose substantially during that period.

In terms of IAS 29, where a general price index is not available, reporting entities may use an estimate based, for example, on the movements in the exchange rate between the functional currency and a stable foreign currency. PPC Zimbabwe therefore considered the ZWL/US$ exchange rate as a proxy to determine the appropriate general price index for the months of February 2023 and March 2023, in the absence of the official ZWL CPI being published. In reaching the conclusion to use the ZWL/US$ exchange rate deprecation as a proxy, PPC Zimbabwe performed a detailed analysis on the correlation between the official ZWL CPI and ZWL/US$ exchange rate depreciation up to 31 January 2023, and determined that a strong correlation exist. Therefore, in the absence of the official ZWL CPI, the exchange rate movements are deemed appropriate to be used as a proxy for the ZWL CPI in February and March 2023. The estimated ZWL CPI w 15 427 and 16 133 for February and March 2023, respectively.

An increase or decrease of 5% in the devaluation of the ZWL against the US$ at 31 March 2023 would have the following impact on the key items of the statement of profit or loss:

Sensitivity analysis	Rm5% higher	Rm5% lower
Revenue	(11)	11
Cost of sales	10	(10)
EBITDA	(2)	2
Net monetary loss on hyperinflation in Zimbabwe	2	(2)

CONTINGENT LIABILITIES AND GUARANTEES

Total bank guarantees issued by the group in favour of various suppliers was R102 million (2022: R102 million). Included in this amount are financial guarantees for the environmental rehabilitation and decommissioning obligations of the group to the Department of Mineral Resources and Energy amounting to R76 million (2022: R76 million).

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

33. EVENTS AFTER REPORTING DATE

Other than the Zimbabwe indigenisation matter referred to in note 32, there have been no events after the reporting date that warrant disclosure in these annual financial statements.

34. SUBSIDIARIES AND NON-CONTROLLING INTERESTS

The consolidated annual financial statements for the year ended 31 March 2023 include the results and statements of financial position of the company, all of its subsidiaries, SPVs and companies that are controlled by the group.

The group includes investments in subsidiaries, either directly or indirectly held by the company, and holds the majority of voting rights in all subsidiaries. Except for the respective BBBEE entities consolidated in terms of IFRS 10 – Consolidated Financial Statements, voting rights are aligned to the proportionate ownership.

The key trading subsidiaries and respective holding companies are:

	Proportion of ownership interest andvoting power held by the group
Name of subsidiary	Principal activity	Country ofincorporation	2023	2022	Holding company
	Manufacturer and supplier of both bag and bulkcement for use within Zimbabwe and surrounding		70%
PPC Zimbabwe Ltd	countriesManufacturer, wholesaler and distributor ofcementitious products, both bag and bulk, within	Zimbabwe	100%	70%	PPC Ltd
PPC Botswana (Pty) LtdPPC South Africa Holdings	Botswana	Botswana	100%	100%	PPC Ltd
(Pty) Ltd	Holding company for South Africa entitiesManufacturer and supplier of both bag and bulk	South Africa	100%	100%	PPC Ltd
PPC Cement SA (Pty) Ltd	cement for use within South Africa and surroundingcountries	South Africa		100%	PPC South AfricaHoldings (Pty) Ltd
PPC InternationalHoldings (Pty) Ltd	Holding company for PPC's Internationalinvestments	South Africa	100 %	100%	PPC Ltd
PPC Group Services (Pty)Ltd	Services to group entities	South Africa	100%	100%	PPC Ltd
Pronto Holdings (Pty) Ltd	Holding company for readymix and fly ash entities	South Africa	100%	100%	PPC South AfricaHoldings (Pty) Ltd
Pronto Building Materials(Pty) Ltd	Manufacturer and supplier of readymix concrete anddry mortar mix in Gauteng	South Africa	100%	100%	Pronto Holdings(Pty) Ltd
Ulula Ash (Pty) Ltd	Manufacturer and supplier of fly ash	South Africa	100%	100%	Pronto BuildingMaterials (Pty) Ltd
3Q Mahuma Concrete(Pty) Ltd	Manufacturer and supplier of readymix concrete	South Africa	100%	100%	Pronto Holdings(Pty) Ltd
Safika Cement Holdings(Pty) Ltd	Manufacturer and supplier of blended cement withinSouth Africa	South Africa	100%	100%	PPC Cement SA(Pty) Ltd
PPC Aggregate Quarries(Pty) Ltd	Manufacturer and supplier of stone, sand, road layermaterial and special aggregate-related products inGauteng	South Africa	100%	100%	PPC South AfricaHoldings (Pty) Ltd
CIMERWA Limitada	Manufacturer and supplier of both bag and bulkcement for use within Rwanda and surroundingcountries	Rwanda	51%	51%	PPC InternationalHoldings (Pty) Ltd
PPC Mozambique SA	Supplier of cement, sourced primarily fromZimbabwe and South Africa, into the Mozambiquemarket mainly into the Maputo and Tete regions	Mozambique	100%	100%	PPC InternationalHoldings (Pty) Ltd

The following summarised financial information is presented for PPC Barnet, CIMERWA and PPC Zimbabwe Ltd and, based on their respective consolidated financial statements, which were prepared in accordance with IFRS, modified for fair value adjustments to financial assets and liabilities at the acquisition date. The information is before intergroup eliminations with other group entities. These entities are deemed material due to their respective non-controlling shareholders being a major component of the value reflected in the consolidated statement of financial position.

34. SUBSIDIARIES AND NON-CONTROLLING INTERESTS continued

In 2013, in order to comply with the Indigenisation and Empowerment Act in Zimbabwe, PPC Zimbabwe issued new shares to four the National Indigenization and Economic Empowerment Fund (NIEEF). The Community Trust and NIEEF are not consolidated shares to indigenous Zimbabweans.

entities under an NVF mechanism. These entities are Strategic Equity Partners, an Employee Share Plan, a Community Trust and
the National Indigenization and Economic Empowerment Fund (NIEEF). The Community Trust and NIEEF are not consolidated
as they are not deemed to be controlled by PPC Zimbabwe. The Act requires foreign-owned companies to offer at least 51% of their
shares to indigenous Zimbabweans.

			PPC			PPC
			Zimbabwe	Restated		Zimbabwe
	PPC Barnet(a)	CIMERWA	Ltd	PPC Barnet	CIMERWA	Ltd(b)
	2023	2023	2023	2022	2022	2022
	Rm	Rm	Rm	Rm	Rm	Rm
Revenue	—	1 563	1 753	891	1 209	2 172
Net profit/(loss) for the year	—	237	(152)	(218)	103	(92)
Net profit/(loss) attributable to non
controlling interests	—	101	—	(67)	50	—
Dividends attributable to non-controlling
interest	—	(84)	(10)	—	—	(7)
Non-controlling percentage interest	—	49%	3.3%	31%	49%	3.3%
Current assets	—	510	504	619	455	637
Current liabilities	—	358	294	3 038	284	273
Current net assets/(liabilities)	—	152	210	(2 419)	171	364
Non-current assets	—	1 169	2 181	2 276	577	3 895
Non-current liabilities	—	173	493	59	318	867
Non-current net assets/liabilities	—	996	1 688	2 217	259	3 028
Equity attributable to non-controlling
interests	—	574	43	(521)	491	52

(a) PPC Ltd lost control of PPC Barnet on 29 April 2022 (refer to note 20).

(b) The non-controlling interest disclosures were updated for the 3.3% relating to certain of the PPC Zimbabwe trusts in the current and comparative periods.

for the year ended 31 March 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

35. STRUCTURED ENTITIES

The group engages in various business activities with structured entities which are designed to achieve a specific business purpose. A structured entity is one that has been set up so that any voting rights or similar rights are not the dominant factor in deciding who controls the entity. An example is when voting rights relate only to administrative tasks and the relevant activities are directed by contractual arrangements.

A structured entity often has some or all of the following features or attributes:

• Restricted activities
• A narrow and well-defined objective
• Insufficient equity to permit the structured entity to finance its activities without subordinated financial support
• Financing in the form of multiple contractually linked instruments to investors that create concentrations of credit or other risks (tranches)

Structured entities are consolidated when the substance of the relationship between the group and the structured entities indicate that the structured entities are controlled by the group. The entities covered by this disclosure note are not consolidated because the group does not control them through voting rights, contract, funding agreements or other means. The extent of the group's interests in unconsolidated structured entities will vary depending on the type of structured entities.

Below is a description of the group's involvement in consolidated structured entities.

Name of consolidated structured entity	Main business objective
PPC Black Managers TrustPPC Team Benefit Trust	The objective of these entities was to facilitate previous BEEtransactions the group entered into. These transactions have maturedand the entities are in the process of being wound up. Shares held bycertain of these entities have been sold in the open market and the cashwill be utilised to settle liabilities. The remaining cash will be distributedin terms of the rules of the schemes.

NATURE OF RISKS ASSOCIATED WITH PPC'S INTEREST IN THE CONSOLIDATED STRUCTURED ENTITIES

Team Benefit Trust – In terms of the trust deed, all reasonable costs and expenses relating to the administration of the trust, in excess of 15% of economic interest received, shall be reimbursed to the trust by PPC Ltd.

No dividends have been paid to the beneficiaries of this trust during the current and prior years.

SPV ENTITIES

PPC Ltd has contractually committed to provide the funding to the above SPV entities, with such financial support as is required to allow them to meet their financial obligations as and when they fall due until such time as they are wound up and deregistered.

Below is a description of the group's involvement in unconsolidated structured entities.

Name of unconsolidatedstructured entity	Main business objective	Interest in unconsolidated entity
Maitlantic 6060 (RF) (Pty) Ltd(Maitlantic 6060 SPV)	The purpose of this trust and SPV is to house thesecurity pool arrangements for the group (refer tonote 14 for further details).	PPC Cement SA (Pty) Ltd made a donationof R100 to the Trust to finance theacquisition of all the shares in the SPV.

36. GOING CONCERN ASSESSMENT

INTRODUCTION

In determining the appropriate basis of preparation of the annual financial statements, the directors are required to consider whether the group can continue as a going concern for the foreseeable future.

1. The sustainability, or viability, of the group, or its ability to continue trading as a going concern. The assessment has included, inter alia, current trading trends, basis of budget preparation and key assumptions underpinning the forecasts and the impact of stress

• The directors' assessment of going concern has focused on three principal areas, namely: testing on such forecasts
• liabilities to the extent applicable and likewise the ability to settle all debts as they fall due until at least 30 June 2024
• (the level of unutilised but available facilities) up to 30 June 2024

1. The solvency of the group: whether the fair value of assets exceeds the fair value of liabilities, including any contingent assets and

2. The liquidity of the group for the next 12 months and beyond, considering whether the group has sufficient liquidity and headroom

SOUTH AFRICA AND BOTSWANA OPERATIONS (SA OBLIGOR GROUP)

The SA obligor group has access to banking facilities of R1,4 billion, of which R925 million was drawn at 31 March 2023. Refer note 14 for debt maturities. The SA obligor group also has cash holdings at 31 March 2023 of R119 million. The board-approved budgets for FY24 and FY25 have been interrogated for reasonableness and key assumptions stress tested. The budgets (forecasts) demonstrate adequate headroom until 30 June 2024 and beyond.

At 31 March 2023, all financial covenants were met and forecasts indicate that covenants will continue to be met for the foreseeable future.

ZIMBABWE

Despite continuing to operate in a challenging hyperinflationary economy, PPC Zimbabwe generates cash surpluses and operates as a going concern on a standalone basis with no funding required from PPC Ltd.

RWANDA (CIMERWA)

CIMERWA continues to trade as a going concern with no expected cash shortfalls in the next 12 months and beyond.

In rand equivalent, CIMERWA has R259 million (RWF26,5 million) of debt at 31 March 2023 and R160 million in cash. Debt will be serviced and repaid from current cash holdings and future operational cash flows.

At 31 March 2023, all financial covenants were met and forecasts indicate that they will continue to be met for the foreseeable future.

GROUP SOLVENCY

On a consolidated basis, the fair value of assets exceeds the fair value of liabilities for the group, with total carrying value of assets at R10,5 billion compared to total (lender) debt of R1,2 billion and total balance sheet liabilities of R4,1 billion (including lender debt).

The aforementioned assets are subject to detailed impairment testing across PPC's CGUs (refer to note 21).

CONCLUSION

Financial plans and forecasts inherently include uncertainty and any significant deviations in the assumptions made may cast doubt on the group's ability to continue as a going concern and its ability to realise assets and discharge liabilities in the normal course of business.

The directors have considered the financial plans and forecasts in detail, including sensitivity analyses based on various adverse scenarios, and based on the information available to them, are of the opinion that the going concern assumption is appropriate in the preparation of the financial statements.

COMPANY STATEMENT OF PROFIT OR LOSS

for the year ended 31 March 2023

Revenue
Decrease in expected credit losses on financial assets
Administration and other operating expenditure
Operating profit before items listed below:
Fair value and foreign exchange movements
Fair value loss on Zimbabwe blocked funds
Impairments
(Loss)/profit before finance costs and investment income
Finance costs
Investment income
(Loss)/profit before taxation
Taxation
(Loss)/profit for the year

	Notes	March2023Rm	March2022Rm
Revenue	9	292	271
Decrease in expected credit losses on financial assets		7	32
Administration and other operating expenditure		(92)	(121)
Operating profit before items listed below:	10	207	182
Fair value and foreign exchange movements	12	120	(1)
Fair value loss on Zimbabwe blocked funds	3.3, 12	(32)	(18)
Impairments	15	(1 602)	(25)
(Loss)/profit before finance costs and investment income		(1 307)	138
Finance costs	13	(2)	(103)
Investment income	14	1	3
(Loss)/profit before taxation		(1 308)	38
Taxation	16	(94)	(13)
(Loss)/profit for the year		(1 402)	25

COMPANY STATEMENT OF FINANCIAL POSITION

as at 31 March 2023

			Restated(a)	Restated(a)
		March	March	1 April
		2023	2022	2021
	Notes	Rm	Rm	Rm
ASSETS
Non-current assets		5 018	6 506	6 538
Finance lease receivable	2.1, 22	—	2	4
Investments in subsidiaries	3.1	4 353	5 955	5 980
Financial assets	3.2	41	22	10
Other non-current assets	3.3	—	32	50
Amounts owing by subsidiaries	3.4, 22	624	495	494
Current assets		215	338	240
Other receivables	4	9	114	3
Amounts owing by subsidiaries	3.5, 22	184	204	218
Taxation receivable		20	18	17
Finance lease receivable	2.1, 22	2	2	2
Total assets		5 233	6 844	6 778
EQUITY AND LIABILITIES
Capital and reserves
Stated capital	5	5 086	5 117	5 138
Other reserves(a)(b)		(262)	(283)	(310)
Retained profit(a)		157	1 559	1 529
Total equity		4 981	6 393	6 357
Non-current liabilities		90	9	15
Deferred taxation liability	6	90	7	11
Lease liabilities	2.2	—	2	4
Current liabilities		162	442	406
Provisions	7	—	—	18
Trade and other payables	8	46	90	67
Lease liabilities	2.2	2	2	2
Amounts owing to subsidiaries	22	114	350	319
Total equity and liabilities		5 233	6 844	6 778

(a) Refer to note 1.4 for details regarding the prior period restatement. (b) Refer to statement of changes in equity for details of other reserves.

COMPANY STATEMENT OF OTHER COMPREHENSIVE INCOME

for the year ended 31 March 2023

	Movementin financialassetsRm	RetainedprofitRm	Totalcomprehensiveincome/(loss)Rm
2023
Loss for the year	—	(1 402)	(1 402)
Items that will be reclassified to profit or loss	(1)	—	(1)
Revaluation of financial assets(a)	(1)	—	(1)
Total comprehensive loss	(1)	(1 402)	(1 403)
2022
Profit for the year	—	25	25
Items that will be reclassified to profit or loss	1	—	1
Revaluation of financial assets(a)	1	—	1
Total comprehensive profit	1	25	26

(a) Revaluation of financial assets has a tax impact of R0,2 million (2022: R0,2 million).

COMPANY STATEMENT OF CHANGES IN EQUITY

for the year ended 31 March 2023

			Other reserves
	StatedcapitalRm	Movementin financialassetsRm	EquitycompensationreserveRm	PutoptionsRm	Total otherreservesRm	RetainedprofitRm	TotalRm
2023
Balance at the beginning of the year	5 117	204	(487)	—	(283)	1 559	6 393
Movement for the year	(31)	(1)	22	—	21		(1 402) (1 412)
IFRS 2 charges	—	—	27	—	27	—	27
Total comprehensive loss	—	(1)	—	—	(1)		(1 402) (1 403)
Vesting of the share incentive scheme	5	—	(5)	—	(5)	—	—
Shares purchased in terms of the shareincentive scheme	(36)	—	—	—	—	—	(36)
Balance at the end of the year	5 086	203	(465)	—	(262)	157	4 981
2022
Balance at the beginning of the year –previously stated	5 138	203	(513)	(423)	(733)	1 952	6 357
Prior year adjustment – DRC put option(a)	—	—	—	423	423	(423)	—
Balance at the beginning of the year – restated	5 138	203	(513)	—	(310)	1 529	6 357
Movement for the year	(21)	1	26	—	27	30	36
IFRS 2 charges	—	—	36	—	36	—	36
Total comprehensive profit	—	1	—	—	1	25	26
Transfer resulting from shares forfeited(a)	—	—	(10)	—	(10)	5	(5)
Shares purchased in terms of the shareincentive scheme	(21)	—	—	—	—	—	(21)
Balance at the end of the year (restated)	5 117	204	(487)	—	(283)	1 559	6 393

(a) Refer to note 1.4.2 for details regarding the prior period restatement.

NOTES TO THE COMPANY FINANCIAL STATEMENTS

for the year ended 31 March 2023

COMPANY STATEMENT OF CASH FLOWS

for the year ended 31 March 2023

		March	March
	Notes	2023Rm	2022Rm
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations
(Loss)/profit before taxation		(1 308)	38
Adjustments for:
IFRS 2 charges		8	8
Fair value and foreign exchange movements	12	(120)	1
Fair value loss on Zimbabwe blocked funds	12	32	18
Decrease in expected credit losses on financial assets		(7)	(32)
Impairments	15	1 602	25
Finance costs	13	2	103
Dividends receivable from subsidiary companies		—	(18)
Management fee income	22	(36)	(26)
Management fee expense	22	37	—
Interest received from subsidiary companies included in revenue	22	(2)	(10)
Investment income	14	(1)	(3)
Operating cash flows before movements in working capital		207	104
Movement in other receivables		105	(111)
Movement in trade and other payables		(40)	30
Cash generated from operations		272	23
Finance costs paid	17	(2)	(2)
Taxation paid	19	(2)	—
Net cash inflow from operating activities		268	21
CASH FLOWS FROM INVESTING ACTIVITIES
Cash advanced to group companies		(21)	—
Cash receipts of amounts advanced to group companies		97	36
Net cash inflow from investing activities		76	36
Net cash inflow before financing activities		344	57
CASH FLOWS FROM FINANCING ACTIVITIES
Lease repayments	2.2	(2)	(3)
Cash advanced by group companies		12	—
Cash repayments of amounts advanced by group companies		(318)	(33)
Purchase of shares in terms of the share incentive scheme		(36)	(21)
Net cash outflow from financing activities		(344)	(57)
Net movement in cash and cash equivalents		—	—
Cash and cash equivalents at the beginning of the year		—	—
Cash and cash equivalents at the end of the year		—	—

1. BASIS OF PREPARATION

The financial statements of PPC Ltd are prepared in accordance with the IFRS issued by the IASB, interpretations issued by the IFRS Interpretations Committee (IFRIC), and in compliance with the SAICA Financial Reporting Guides issued by the Accounting Practices Committee (APC) and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council (FRSC),and the Companies Act. The financial statements have been prepared on the historical cost basis with the exception of certain financial instruments subsequently measured at fair value. The financial statements are prepared in South African rand, which is the company's presentation and functional currency. All financial information is presented in rand, unless otherwise stated.

The annual financial statements have been prepared under the supervision of B Berlin CA(SA), CFO of the company.

The accounting policies are consistent with the prior year, except where the company has adopted new or revised accounting standards, amendments and interpretations of those standards, which became effective during the year under review. Impairments, finance costs and investment income have been represented to align with group presentation.

The following standards were adopted in the current year:

Standard, amendment or interpretation	Impact on the financial statements
IAS 16 – Property, plant and equipment – proceeds before intended	No significant impact on the company financial statements
IAS 37 – Provisions, contingent liabilities and contingent assets –onerous contracts – cost of fulfilling a contract	No significant impact on the company financial statements
IFRS 1 – First-time adoption of IFRS – annual improvements to IFRS2018 – 2020	No significant impact on the company financial statements
IFRS 3 – Business combinations – reference to the conceptualframework	No significant impact on the company financial statements

IFRS 3 – Business combinations – reference to the conceptual framework

It is the policy of PPC Ltd not to adopt new standards before they become effective. Refer to note 30 to the group annual financial statements for a list of standards and improvements in issue but not yet effective.

1.2 ACCOUNTING POLICIES

In preparing these financial statements, all accounting policies are in compliance with IFRS.

1.3 SIGNIFICANT JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTY

The preparation of financial statements in conformity with IFRS requires management to make estimates, assumptions and judgements that affect reported amounts and related disclosures, and therefore actual results, when realised in future, could differ from these

estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

Judgements made by management in applying the accounting policies that could have a significant effect on the amounts recognised in the financial statements are disclosed in the respective notes.

The following are the critical judgements that the directors have made in the process of applying the company accounting policies and that have the most significant effect on the amounts recognised in the financial statements. Refer to the referenced notes below for the explanation of the noted area of judgement:

• Financial assets, investments in subsidiaries and other non-current assets (note 3) – Recoverability and valuation of the asset
• Investments in subsidiaries
• Zimbabwe blocked funds – Amounts owing by subsidiaries
• Fair value gain on DRC put option (note 12)
• Put option liability valuation
• Put option liability

for the year ended 31 March 2023

NOTES TO THE COMPANY FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

1. BASIS OF PREPARATION continued

1.4 PRIOR PERIOD RESTATEMENTS

1.4.1 Reclassification of amounts owing by subsidiaries to investment in subsidiaries

Commencing in 2013, PPC Ltd advanced money to PPC International Holdings in order for PPC International Holdings to invest in CIMERWA, PPC Barnet and Habesha.

These advances were treated as loans by PPC Ltd and recorded in "amounts owing by subsidiaries".

In the current year, the advances were re-assessed and it was noted that PPC Ltd had made an error and should have classified the initial advances as an "investment in subsidiaries" and not as "amounts owing by subsidiaries" in the "non-current assets" section of the statement of financial position. The amounts advanced are unsecured, interest free and have no fixed date of repayment. PPC Ltd and PPC International Holdings would both have to agree before any form of repayment can be made. PPC Ltd has no intention of calling for settlement of the amounts advanced. The prior year amounts have consequently been restated and the impact of such restatement is set out below:

	March	March
	2022	2021
	Rm	Rm
Statement of financial position (extract)
Investment in subsidiaries (as previously stated)	4 393	4 393
Impact of restatement	1 562	1 587
Investment in subsidiaries (restated)	5 955	5 980
Amounts owing by subsidiaries – non-current assets (as previously stated)	2 057	2 081
Impact of restatement	(1 562)	(1 587)
Amounts owing by subsidiaries – non-current assets (restated)	495	494

The difference in the impact of restatement between 2021 and 2022 relates to an impairment loss of R25 million recognised in 2022. The valuation of the individual CGUs of the company's subsidiaries has been taken into account in assessing the underlying value of the investment and the impairment required on the money advanced. The value in use calculations were adjusted for debt and cash and compared to the carrying value of the investment. There is no change to the impairment loss calculated in 2022 as a result of the restatement in the current year.

1.4.2 Reclassification of put option from other reserves to retained profit

In 2015, PPC Ltd entered into a put option agreement with the International Finance Corporation (IFC) in terms of which the latter can put its investment or part thereof in PPC Barnet DRC Holdings to PPC Ltd.

The put option agreement gave rise to a financial liability for PPC Ltd, which PPC Ltd raised in 2015 with a corresponding debit to a separate reserve in equity.

In the current year, management re-assessed the accounting considerations of the put option and concluded that a separate reserve in equity should not have been raised. The corresponding debit to the financial liability should have been charged to the statement of profit or loss. The prior year amounts have consequently been restated and the impact of such restatement is set out below:

Statement of financial position (extract)Other reserves (as previously stated)(706)Impact of restatement423(283)Other reserves (restated)Retained profit (as previously stated)1 982	March2021Rm
	(733)
	423
	(310)
	1 952
Impact of restatement(423)	(423)
Retained profit (restated)1 559	1 529

2. LEASES

2.1 FINANCE LEASE RECEIVABLE

Leases in which the company is a lessor are classified as finance leases or operating leases. If the lease transfers substantially all of the risks and rewards of ownership to the lessee, the lease is classified as a finance lease. All other leases are classified as operating leases.

A sublease, where the company is an intermediate lessor, is classified as a finance lease when it transfers substantially all of the risks and rewards of the right-of-use asset arising from the head lease.

Lease income under operating leases is recognised in the statement of profit or loss on a straight-line basis over the lease term.

2. LEASES continued

2.1 FINANCE LEASE RECEIVABLE CONTINUED

Amounts due from lessees under finance leases are recognised as a receivable discounted at the interest rate implicit in the lease. Finance lease income is recognised in the statement of profit or loss over the lease term to produce a constant periodic rate of interest on the receivable.

The company has entered into a sublease agreement with PPC Group Services (Pty) Ltd, a subsidiary, to sublet its leased building. The sublease transfers substantially all of the risks and rewards of right-of-use of the building and is classified as a finance lease.

The maturity analysis of the lease receivable, including undiscounted lease payments to be received, is as follows:

	March2023	March2022
	Rm	Rm
Less than one year	2	3
One to five years	—	2
Total undiscounted lease payments receivable	2	5
Unearned finance income	—	(1)
Net investment in the lease	2	4
Non-current finance lease receivable	—	2
Current finance lease receivable	2	2
	2	4

2.2 LEASE LIABILITIES

The lease liability between the company and the external third party is initially measured at the present value of the remaining lease payments on the commencement date, discounted using the company's incremental borrowing rate. The lease liability is subsequently increased by interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in the future lease payments arising from a change in an index or rate.

The reassessment of the lease liability is applied to remeasure the lease liability if a significant event or a significant change in circumstances occurs that changes the lease payments.

DISCOUNT RATE

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the company, the lessee's incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. The lease liabilities were measured at the present value of the remaining lease payments, discounted using the incremental borrowing rate of the entity that is the counterparty to the lease contract, as at commencement date. This incremental borrowing rate was derived from the group's incremental borrowing rate.

	March2023Rm	March2022Rm
Net carrying value at the beginning of the year	4	6
Lease payments made during the year	(2)	(3)
Finance costs on lease liabilities	—	1
Net carrying value at the end of the year	2	4
Non-current lease liabilities	—	2
Current lease liabilities	2	2
	2	4
Maturity analysis – undiscounted contractual cash flows
Less than one year	2	3
One to five years	—	2
	2	5
Breakdown of lease payments
Fixed payments	2	4
Total payments	2	4
Amounts recognised in statement of profit or loss
Finance income sublease	—	(1)
Finance costs on lease liabilities	—	1
Net effect	—	—

for the year ended 31 March 2023

NOTES TO THE COMPANY FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

3. FINANCIAL ASSETS, INVESTMENTS IN SUBSIDIARIES AND OTHER NON-CURRENT ASSETS

3.1 INVESTMENTS IN SUBSIDIARIES

		Restated(a)
	March2023	March2022
	Rm	Rm
Investments in subsidiaries
Investments in subsidiaries at the beginning of the year	5 955	5 980
Impairment of investments (refer to note 15.1)	(1 602)	(25)
	4 353	5 955

(a) Refer to note 1.4.1 for details regarding the prior period restatement.

The company elected to recognise its investments in subsidiaries at cost less accumulated impairment.

IMPAIRMENT OF INVESTMENTS

The valuation of the individual cash-generating units (CGUs) of the company's subsidiaries has been taken into account in assessing the underlying value of the investments. The value in use calculations were adjusted for debt and cash and compared to the carrying value of the investment. Refer to note 21 of the consolidated group annual financial statements for more detailed information regarding the key assumptions used in the valuation of the individual CGUs. In the current year, an impairment loss of R1 602 million (2022: R25 million) was recognised by the company. Please refer to the impairment assessment below.

Name of subsidiary	Ownership%	Carrying valueRm	RecoverableamountRm	(Impairment)/headroomRm	BalanceRm
31 March 2023
PPC Group Services	100	101	(245)	(101)	—
PPC South Africa Holdings	100	3 808	7 653	3 845	3 808
PPC Botswana Cement	100	12	164	152	12
PPC International Holdings	100	1 562	61	(1 501)	61
PPC Zimbabwe	70	472	2 014	1 542	472
Total		5 955	9 647	3 937	4 353
31 March 2022
PPC Group Services (a)	100	101	—	101	101
PPC South Africa Holdings	100	3 808	10 831	7 023	3 808
PPC Botswana Cement	100	12	229	217	12
PPC International Holdings	100	1 587	1 562	(25)	1 562
PPC Zimbabwe	70	472	3 344	2 872	472
Total		5 980	15 966	10 188	5 955

(a) In the prior year this was treated as a corporate asset and the carrying value was allocated between PPC South Africa Holdings,, PPC International Holdings and PPC Zimbabwe based on their revenue contribution to the group.

3.2 FINANCIAL ASSETS

	March2023Rm	March2022Rm
Non-current financial assets at fair value through profit or loss
Cell captive investment	33	19
Total non-current financial assets at fair value through profit or loss	33	19
Non-current financial assets at fair value through other comprehensive income
Investment in Old Mutual shares on the Zimbabwe Stock Market	2	3
MRG investment	6	—
Total non-current financial assets at fair value through other comprehensive income	8	3
Total financial assets	41	22

3. FINANCIAL ASSETS, INVESTMENTS IN SUBSIDIARIES AND OTHER NON-CURRENT ASSETS

3.2 FINANCIAL ASSETS CONTINUED

Cell captive investment PPC invested in preference shares in Centriq Insurance Company Ltd, a licensed cell captive insurer. The preference shares are governed by a preference share agreement (also called a subscription agreement), which confers certain rights and obligations on the shareholder and the insurer. Some of the main features include the fact that the shareholder (cell owner) gets the right to share in the profits of a specified book of insurance policies. If there are losses on the book, the cell owner has the obligation to recapitalise the cell. Capitalisation and re-capitalisation of the cell is by way of a cash injection into the insurer, who allocates the capital to the cell.

The investment is initially measured at cost and subsequently at fair value, with changes recognised in profit or loss. The valuation of the cell captive is determined using the net asset value at each reporting date. The cell captive also recognises technical provisions of gross unearned reserve and the IBNR (incurred not yet reported) provision as required for insurance companies.

Investment in Old Mutual shares on the Zimbabwe Stock Exchange This investment relates to the investment in 200 000 Old Mutual shares on the Zimbabwe Stock Exchange. The market value as at 31 March 2023 is R2 million (2022: R3 million). As a result of the uncertainty around the expatriation of funds from Zimbabwe, the investment has been classified as non-current.

The shares remain suspended on the Zimbabwe Stock Exchange. The Securities and Exchange Commission of Zimbabwe issued directive SS28/04/2021 for all dual–listed counters that are suspended to be valued using the JSE price.

MRG investment

Previously, PPC had standalone insurance cover through a broker. During the current year, PPC entered into a new insurance structure through acquiring a 6,75% shareholding in two entities within the Mutual Risk Group (MRG). This arrangement allows the company to participate with other independent companies in a mutual fund that forms the basis of the insurance agreement. The equity investment is not held for trading and the company has irrevocably elected at initial recognition to recognise it at fair value through other comprehensive income. The investment is strategic and the company considers this classification to be more relevant. The valuation of the investment is determined using the net asset value at each reporting date, determined from the management accounts received from the investee.

3.3 OTHER NON-CURRENT ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

	March2023Rm	March2022Rm
Investment in Zimbabwe blocked funds
Blocked funds at the beginning of the year	32	50
Fair value adjustment – intrinsic value	75	(7)
Fair value adjustment – credit risk	(107)	(11)
	—	32

INVESTMENT IN ZIMBABWE BLOCKED FUNDS

No formal confirmation has been received from the Reserve Bank of Zimbabwe (RBZ) regarding repayment of this amount and as such the investment is classified as non-current. The investment is a statutory receivable and, as no repayment terms have been agreed, it is not a financial asset as defined. It is, however, PPC Ltd's policy to value the Zimbabwe blocked funds as if it was a financial asset, and therefore it is valued at fair value through profit or loss.

Hyperinflation, the challenging general economic environment and the unavailability of foreign currency in Zimbabwe were considered in the determination of an appropriate fair value adjustment to be applied to the blocked funds. Management assessed that there was an increase in the credit risk of the RBZ, resultant in the application of a fair value credit risk adjustment of 100% (2022: 90%), which resulted in a cumulative fair value adjustment of R399 million as at 31 March 2023 (2022: R292 million).

The net fair value loss on the Zimbabwe blocked funds of R32 million (2022: R18 million) comprises an increase of the intrinsic value of R75 million (2022: R7 million decrease) and a credit risk fair value loss of R107 million (2022: R11 million).

for the year ended 31 March 2023

NOTES TO THE COMPANY FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

4. OTHER RECEIVABLES

	March2023Rm	March2022Rm
VAT receivable	7	6
Dividend receivable	—	18
Prepayments	2	—
Other receivables(a)	—	90
	9	114

(a) In the prior year, other receivables represented DRC restructuring costs to be refunded by DRC subsidiaries (refer to note 22).
No receivables have been pledged as security.

5. STATED CAPITAL

	March	March
	2023	2022
	Shares	Shares
Authorised ordinary shares	10 000 000 000	10 000 000 000
Issued ordinary shares
Total shares in issue at the beginning of the year	1 553 764 624	1 593 114 301
Shares repurchased and cancelled during the year(a)	—	(39 349 677)
Total shares in issue at the end of the year	1 553 764 624	1 553 764 624
Total shares in issue at the beginning of the year (net of treasury shares)	1 532 407 129	1 536 491 773
Shares purchased in terms of the share incentive scheme	(11 011 837)	(4 084 644)
Vesting of shares held in terms of the share incentive scheme	1 311 715	—
Total shares in issue (net of treasury shares)	1 522 707 007	1 532 407 129
Authorised preference shares	20 000 000	20 000 000
	Rm	Rm
Stated capital
Balance at the beginning of the year	5 117	5 138
Shares purchased in terms of the share incentive scheme	(36)	(21)
Vesting of shares held in terms of the share incentive scheme	5	—
Balance at the end of the year	5 086	5 117
Unissued shares
Ordinary shares	8 446 235 376	8 450 320 020
Preference shares	20 000 000	20 000 000

Stated capital

Unissued shares

(a) In the prior year, the shares were repurchased at 1 cent per share.

Of the unissued ordinary shares at the end of the year, the directors have the authority until the next AGM to allot a maximum of 77 688 231 (2022: 77 688 231) shares subject to the provisions of the Companies Act and the JSE Listings Requirements.

3. FINANCIAL ASSETS, INVESTMENTS IN SUBSIDIARIES AND OTHER NON-CURRENT ASSETS continued

3.4 AMOUNTS OWING BY SUBSIDIARIES INCLUDED IN NON-CURRENT ASSETS

		Restated(a)
	March	March
	2023	2022
	Rm	Rm
PPC International Holdings (Pty) Ltd
Shareholders' loan	624	495
Amounts owing by subsidiaries included in non-current assets	624	495

(a) Refer to note 1.4.1 for details regarding the prior period restatement.

Amounts owing from PPC International Holdings (Pty) Ltd are unsecured, interest free and have no fixed date of repayment.

The shareholders loan is classified as a non-current asset because it has no fixed terms of repayment, management has no intention of calling the loan, and accordingly it will not be settled within 12 months.

IMPAIRMENT CONSIDERATIONS

Judgements made by management and sources of estimation uncertainty

Due to the long-term nature of the shareholder loan, judgement is required in determining the recoverability and valuation of the loan. The balance is exposed to movements in exchange rates, changes in regulatory environments and the underlying equity value of the various investments in subsidiaries. In determining the expected credit loss (ECL), management considered the credit risk and probability of default associated with the borrower as well as the cash flow forecast associated with the borrower. Based on the assessment performed (taking into account the terms of the loan), the borrower is expected to generate sufficient cash flow, which will allow it to settle the amounts due to the company over time, and as such no ECL was raised on the amount owing.

3.5 AMOUNTS OWING BY SUBSIDIARIES INCLUDED IN CURRENT ASSETS

	March	March
	2023	2022
	Rm	Rm
Amounts owing by subsidiaries	184	211
Expected credit losses	—	(7)
Amounts owing by subsidiaries included in current assets (refer to note 22)	184	204

The loans have no fixed terms of repayment, are unsecured and, where appropriate, interest is calculated using ruling market-related interest rates. The loans are classified as current as the company can demand repayment immediately. Management's intention is to call on these loans in the next 12 months.

IMPAIRMENT CONSIDERATIONS

Judgements made by management and sources of estimation uncertainty

The intercompany loan receivables are assessed for impairment in terms of IFRS 9 – Financial Instruments, which is based on the premise of providing for ECLs.

Management applies judgement in determining the ECLs. For current receivables, the ECL is based on the assumption that the repayment can be demanded at the reporting date. In performing the ECL assessment, management considered whether the borrower had sufficient highly liquid assets to repay the amount due to the company. Based on the assessment performed, no material ECL was required.

During the year, a portion of the ECL that was previously raised was reversed as the BEE entities' bank accounts were closed and the money was transferred to PPC Ltd to repay a portion of the outstanding loans. A reversal of ECL of R7 million (2022: R32 million) has been recognised in the current year.

for the year ended 31 March 2023

NOTES TO THE COMPANY FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

8. TRADE AND OTHER PAYABLES

	March2023Rm	March2022Rm
Trade payables and accruals	43	63
Unclaimed dividends	—	11
Finance costs accrued	—	10
Trade and other financial payables	43	84
Payroll accruals	3	6
	46	90
Trade and other payables are payable within the normal trade terms of a 30-day to 60-day period.No interest is payable on overdue payments.

9. REVENUE

	March2023Rm	March2022Rm
Royalty fee for use of mining rights	6	5
Dividend income	248	230
Management fee	36	26
Interest received from subsidiaries	2	10
	292	271

REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue is recognised at the amount of the transaction price that is allocated to each performance obligation and this is determined at an amount that depicts the consideration to which the company expects to be entitled in exchange for transferring the goods and services promised to the customer.

Revenue includes royalty fees and management fees.

ROYALTY FEE FOR USE OF MINING RIGHTS Revenue is recognised on the use of the PPC Ltd mining rights by PPC Cement SA (Pty) Ltd and PPC Aggregates Quarries (Pty) Ltd.

DIVIDEND INCOME

Dividend income is recognised when the right to receive payment is established.

MANAGEMENT FEE

Revenue is recognised when management services have been rendered to subsidiary companies.

INTEREST INCOME

Interest income relates to interest earned on financial assets measured at amortised cost. Interest is recognised on a time proportionate basis, using the effective interest method and accrues in profit or loss.

6. DEFERRED TAXATION

	March	March
	2023	2022
	Rm	Rm
Movement
Balance at the beginning of the year	(7)	(11)
Released to income statement	(83)	8
Prior year adjustments	—	(4)
Balance at the end of the year	(90)	(7)
Analysis of deferred taxation
Provisions	24	23
Non-current receivables	(100)	(70)
Current receivables and prepayments	(1)	—
Taxation losses	—	53
Reserves	(13)	(13)
Deferred taxation liability	(90)	(7)

KEY JUDGEMENTS

Deferred taxation assets

Deferred taxation assets are recognised to the extent it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Future tax profits are estimated based on business plans, which include estimates and assumptions regarding economic growth, interest, inflation, tax rates and the competitive environment.

The PPC Ltd deferred tax asset recoverability was based on applicable South African tax laws and approved business plans. PPC Ltd currently has an accumulated tax loss of R177 million (2022: R196 million). It is unlikely that the deferred tax temporary differences will unwind in the foreseeable future, which results in uncertainty over the utilisation of the deferred tax asset arising from the tax loss. Therefore the deferred tax asset has been derecognised in the current year.

7. PROVISIONS

	March	March
	2023	2022
	Rm	Rm
Provision
Movement in the provisions
Balance at the beginning of the year	—	18
Amounts utilised	—	(18)
Balance at the end of the year	—	—

The provision raised in March 2021 related to management's estimates for success fees payable to advisers for the restructuring and refinancing project. All components of this project were substantially completed during the prior financial year and known costs incurred, but not paid at 31 March 2022 were accrued for under trade payables and accruals. All trade payables related to the restructuring and refinancing project were settled in the current financial year.

for the year ended 31 March 2023

NOTES TO THE COMPANY FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

11. SHARED-BASED PAYMENTS continued

11.2 LONG-TERM INCENTIVE PLAN (LTIP)

The LTIP was introduced on 1 April 2020 and offers employees across the group participation in the LTIP with the aim of driving group performance in line with the company's strategy. In order to recognise contributions made by selected employees and provide an incentive for their continued performance and relationship with the group, the LTIP provides them with the opportunity of receiving a long-term incentive and to ensure that the company attracts and retains the core competencies required for formulating and implementing the company's business strategies.

On 1 April each year, a LTIP participant is allocated an incentive value being the participant's total guaranteed package multiplied by a relevant allocation percentage. Performance conditions are set annually for the performance period. At the end of the performance period (being a period of one year), the remuneration and talent committee will assess whether the performance conditions have been met and adjust the incentive value accordingly. PPC Ltd will then provide the cash to the Central Securities Depository Participant (CSDP) to enable the CSDP to purchase PPC shares on the market to the value of the adjusted incentive value. The number of shares awarded to each participant can therefore only be determined at that time. The shares are held by an escrow agent until the release date. The employer companies will reimburse PPC Ltd for the cost of the shares. During the vesting period (three years postperformance conditions being met), the employee is entitled to dividends and voting rights but may not dispose of the shares until the vesting conditions have been met and the shares have been released. Should any shares be forfeited in terms of the rules, PPC will instruct the escrow agent to sell the shares and return the cash to the employer company. The vesting condition is that the employee has to remain in the employ of the employer for a further three years after the performance conditions have been met.

The performance conditions include both market (being total shareholder return) and non-market-related conditions (being board approved budgeted return on invested capital).

LTIP award

LTIP award	Actual numberof awards as at31 March 2023 –2022 scheme(a)	Estimated numberof awards as at31 March 2022for the 2022scheme(a)	Actual numberof awards as at31 March 2023 –2021scheme(b)
Number of shares	3 281 082	2 435 162	4 148 550
Share price	3,51	4,25	3,93

(a) At 31 March 2022, management estimated that 100% of the performance conditions would be met and that 2 435 162 shares would be awarded, based on the share price at the time of R4.25. In July 2022, the performance conditions were measured and determined to be exceeded, resulting in 3 281 082 shares being awarded at an average price of R3.51 per share.

• These shares will become unconditional on 1 April 2025.
• 2024.

(b) In July 2021, 4 610 554 shares were awarded at an average price of R3.93 per share. Between the award date and 31 March 2022, 380 645 shares were forfeited in terms of the rules of the scheme. In March 2023, a participating employee with 81 359 shares was transferred to PPC Cement SA. The remaining 4 148 550 shares will become unconditional on 1 April

At 31 March 2023 management estimated that the performance conditions would not be met and therefore no shares would be awarded for the 2023 scheme.

	2023Rm	2022Rm
The carrying amount of the LTIP in equity compensation reserve at year-end	17	14

12. FAIR VALUE AND FOREIGN EXCHANGE MOVEMENTS

	March	March
	2023	2022
	Rm	Rm
Gain/(loss) on translation of foreign currency denominated monetary items	107	(13)
Fair value adjustment on cell captive(a)	13	12
	120	(1)
Fair value loss Zimbabwe blocked funds(b)	(32)	(18)
	88	(19)

(a) The fair value adjustment on the cell captive has been disaggregated for enhanced disclosure. In the prior year, the fair value adjustment on the cell captive was included in loss on

translation of foreign currency denominated monetary items. (b) Refer to note 3.3 – Non-current assets.

Put option liability

In 2015, PPC Ltd entered into a Put Option Agreement with the IFC in terms of which the latter can put its investment or part thereof in PPC Barnet to PPC Ltd. The put option may be exercised between 24 September 2021 and 24 September 2026 and under further specific circumstances detailed in the agreement.

Refer to note 15 of the group annual financial statements for further details.

10. OPERATING PROFIT

	March	March
	2023	2022
	Rm	Rm
Operating profit includes:
Auditors' remuneration	14	11
Professional fees relating to restructuring and refinancing project	7	44
Staff costs:
Equity-settled share incentive scheme charge (refer to note 11)	8	8
Employees' remuneration	12	19

11. SHARED-BASED PAYMENTS

JUDGEMENTS MADE BY MANAGEMENT AND SOURCES OF ESTIMATION UNCERTAINTY

Fair value used in calculating the amount to be expensed as a share-based payment is subject to a level of uncertainty. The company is required to calculate the fair value of the equity-settled instruments granted to employees in terms of the long-term incentive plan (LTIP).

These fair values are calculated by applying a valuation model, which is in itself judgemental, and considers certain inherently uncertain assumptions such as dividend yield, share price volatility, performance conditions and staff turnover.

11.1 RETENTION AWARDS

In terms of IFRS 2 – Share-based Payment, the fair value of each share awarded, which will be expensed over the vesting period in return for services rendered, is based on the average market price of acquiring the share and is not remeasured subsequently. The service and performance conditions are taken into account in the number of instruments that are expected to vest. Subsequent revisions are made for changes in estimated attrition and probability of satisfaction of performance conditions.

On 1 October 2019, PPC granted 1 311 715 retention awards to a director. On 1 October 2022, the shares vested unconditionally with the director.

	Retentionawards
Date of grant	01/10/2019
Number of shares granted to:
A director	1 311 715
Management and prescribed officers	—
Average purchase price of shares acquired (R)	3,89
Estimated fair value per share at grant date (R)	3,89

for the year ended 31 March 2023

NOTES TO THE COMPANY FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

16. TAXATION

KEY JUDGEMENT

Judgement is required in determining the estimate of the provision for income taxes at the reporting period. The company recognises provisions for taxation based on estimates of the taxes that are likely to become due. Where the final taxation outcome is different from the amounts that were initially recorded, such differences impact the income taxation and deferred taxation provisions in the period in which such determination is made.

South African normal taxation

	March2023Rm	March2022Rm
South African normal taxation
Current taxation	1	—
Current year	1	—
Deferred taxation	83	(4)
Current year	83	(8)
Prior year overprovision	—	4
Withholding taxation	10	17
Total taxation charge	94	13
	March2023%	March2022%
Reconciliation of taxation rate
Effective tax rate	(7,2)	34,2
Prior year taxation impact	—	(10,7)
Non-taxable income including dividends received included in revenue	(6,6)	168,0
Expenditure not deductible in terms of taxation legislation(a)	1,7	(97,1)
Deferred tax not recognised on impairments and ECLs	37,4	(4,1)
Expenses not in the production of income(b)	1,2	(25,0)
Fair value adjustment of financial assets	(0,3)	8,1
Change in tax rate	—	(0,7)
Withholding taxation	0,8	(44,7)
South African normal taxation rate	27,0	28,0
(a) Disallowed expenses includes interest, legal and consulting fees that are capital in nature.

(b) Expenditure attributable to non-taxable dividend received.

17. FINANCE COSTS PAID

	March2023Rm	March2022Rm
Finance costs as per income statement charge (refer to note 13)	(2)	(103)
Subsidiary companies	—	100
Finance costs of lease liability	—	1
	(2)	(2)

13. FINANCE COSTS

March	March2022
Rm	Rm
2	2
2	2
—	100
—	1
2	103
	2023

(a) Refer to note 22 – Related-party transactions. (b) Refer to note 2 – Leases.

14. INVESTMENT INCOME

	March2023Rm	March2022Rm
Interest on deposits and non-current assets	1	2
Finance income on the sublease (a)	—	1
	1	3

(a) The finance income relates to the sublease of the Sandton office building to PPC Group Services (Pty) Ltd.

The investment income disclosed above is not considered to be revenue as it does not arise from the company's course of ordinary activities.

15. IMPAIRMENTS

		March	March
		2023	2022
	Notes	Rm	Rm
Impairment of investment (refer to note 3.1)	15.1	1 602	25
		1 602	25

15.1 IMPAIRMENT OF INVESTMENTS

Investment in PPC Group Services (Pty) Ltd	101	—
Investment in PPC International Holdings (Pty) Ltd	1 501	25
	1 602	25

A full impairment was recognised in the current year on the investment in PPC Group Services as this investment is no longer considered a corporate asset from an impairment assessment.

A partial impairment was recognised in the current year on the investment in PPC International Holdings, which is driven by the underlying investment in the CIMERWA CGU. Refer to note 21 of the consolidated group annual financial statements for more detailed information around the CIMERWA CGU impairment.

for the year ended 31 March 2023

NOTES TO THE COMPANY FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

21. FINANCIAL RISK MANAGEMENT continued EQUITY INSTRUMENTS

The company subsequently measures all financial assets that are considered to be equity instruments from an issuer's perspective, at fair value. Where the company has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss following derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as other income when the company's right to receive payments is established.

FINANCIAL LIABILITIES – CLASSIFICATION AND MEASUREMENT

The company recognises instruments where it has a contractual obligation (i) to deliver cash or another financial asset to another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the company, as financial liabilities. Financial liabilities are recognised once the company becomes a party to the contractual rights and obligations in the underlying contracts.

Under IFRS 9 – Financial Instruments requirements, the company measures financial liabilities at either fair value or amortised cost. The company recognises all financial liabilities at amortised cost, unless the company is required to measure the financial liabilities at fair value or has opted to measure the liability at fair value.

All financial liabilities are initially measured at fair value, minus (in the case of financial liabilities not recognised at fair value through profit or loss) transaction costs that are directly attributable to the issuance of the financial instrument.

Financial liabilities that are subsequently measured at amortised cost are measured at the amount recognised on initial recognition minus principal prepayments, plus the cumulative amortisation using the effective interest method. The movements in financial liabilities that are subsequently measured at fair value are recognised in profit or loss, with changes in the fair value of these financial liabilities that are attributable to the company's own credit risk recognised in other comprehensive income. Where these financial liabilities are derecognised, the cumulative gain or loss previously recognised in other comprehensive income is not reclassified from equity to profit or loss. However, it may be reclassified within equity.

DERECOGNITION OF FINANCIAL ASSETS

Financial assets are derecognised when the right to receive cash flows from the asset has expired, the right to receive cash flows has been retained but an obligation to pay them in full without material delay has been assumed, or the right to receive cash flows has been transferred together with substantially all the risks and rewards of ownership.

DERECOGNITION OF FINANCIAL LIABILITIES

Financial liabilities are derecognised when their related obligations are discharged, cancelled or expire. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid is recognised in profit or loss as other income or finance costs.

Financial liabilities are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

FINANCIAL INSTRUMENTS – EXPECTED CREDIT LOSSES

IFRS 9 – Financial Instruments requires impairments to be determined based on an expected credit loss (ECL) model for financial assets carried at amortised cost or fair value through other comprehensive income. The company recognises an allowance for either a 12-month or lifetime ECL, depending on whether there has been a significant increase in credit risk. The company measures the ECLs in a manner which reflects a probability-weighted outcome, the time value of money and the entity's best available forward looking information. The preceding probability-weighted outcome considers the possibility that a credit loss will occur and the possibility that no credit loss will occur, no matter how low the probability of credit loss occurrence might be. The ECL model applies to financial assets measured at amortised cost and fair value through other comprehensive income, lease receivables and certain loan commitments as well as financial guarantee contracts.

The company's financial instruments consist mainly of amounts owing by subsidiaries, other receivables and payables.

CAPITAL RISK MANAGEMENT

The company manages its capital to ensure it will continue as a going concern, while maximising the return to stakeholders through the optimisation of debt and equity. Refer to note 25 for a detailed explanation as to management's going concern considerations.

The capital structure of the company consists of lease liabilities (note 2.2) and equity attributable to PPC Ltd shareholders, comprising stated capital (note 5), reserves and retained profit. Refer to note 28 of the group financial statements for information on how capital is managed for the group.

The company's debt at statement of financial position date was as follows:

Lease liabilities
Total equity
Total capital

	2023Rm	2022Rm
Lease liabilities	(2)	(4)
Total equity	4 981	6 393
Total capital	4 979	6 389

18. INVESTMENT INCOME RECEIVED

	March	March
	2023	2022
	Rm	Rm
Interest on deposits and non-current assets (refer to note 14)	1	2
SARS interest receivable	(1)	(1)
Finance income on sublease (refer to note 14)	—	(1)
	—	—

19. TAXATION PAID

	March2023Rm	March2022Rm
Net amounts receivable at the beginning of the year		17
Charge per income statement excluding deferred taxation (refer to note 16)	18(1)	—
SARS interest receivable	1	1
Net amounts receivable at the end of the year	(20)	(18)
	(2)	—

20. CONTINGENT LIABILITIES

CONTINGENT LIABILITIES AND GUARANTEES

There were no contingent liabilities at year-end.

PPC Ltd, together with a number of its South African subsidiary companies, stand as guarantor on a joint and several basis for the facilities provided by the SA primary lenders: refer to notes 14 and 36 of the group annual financial statements for more detail.

The total guarantees issued by the company, by means of a bank guarantee, in favour of various suppliers was R92 million (2022: R92 million). Included in this amount are financial guarantees for the environmental rehabilitation and decommissioning obligations of the group to the Department of Mineral Resources (DMR), amounting to R76 million (2022: R76 million).

21. FINANCIAL RISK MANAGEMENT

IFRS 9 – FINANCIAL INSTRUMENTS

IFRS 9 – Financial Instruments provides guidance on the classification, measurement and recognition of financial assets and financial liabilities. The standard establishes three measurement categories for financial assets: amortised cost, fair value through other comprehensive income, and fair value through profit or loss. Classification of financial assets into these categories is dependent on the entity's business model (which depicts its objectives with respect to the management of financial assets as a whole) and the characteristics of the contractual cash flows of the specific financial asset.

The company's application of IFRS 9 – Financial Instruments and the company's exposure to financial risks and how these risks could affect the company's future financial performance has been described below.

FINANCIAL ASSETS – CLASSIFICATION AND MEASUREMENT

IFRS 9 – Financial Instruments requires all financial assets to be initially recognised at fair value, including directly attributable transaction costs for all financial assets not measured at fair value through profit or loss. Transaction costs for financial assets carried at fair value through profit or loss are expensed in profit or loss.

The company subsequently measures financial assets depending on whether these instruments are debt or equity instruments (from an issuer's perspective).

DEBT INSTRUMENTS

Subsequent measurement of financial assets that are considered to be debt instruments from an issuer's perspective, based on the company's (i) business model within which the financial assets are managed, and (ii) the contractual cash flow characteristics of the financial assets (whether the cash flows represent solely payment of principal and interest). Financial assets are measured at amortised cost if they are held within a business model whose objective is to hold those assets for the purpose of collecting contractual cash flows and those cash flows comprise solely payments of principal and interest (hold to collect).

Financial assets are measured at fair value through other comprehensive income if they are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and those contractual cash flows comprise solely payments of principal and interest (hold to collect and sell). Movements in the carrying amount of these financial assets should be taken through other comprehensive income, except for interest revenue and foreign exchange gains or losses, which are recognised in profit or loss. Where the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss.

for the year ended 31 March 2023

NOTES TO THE COMPANY FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

21. FINANCIAL RISK MANAGEMENT continued

LIQUIDITY RISK MANAGEMENT

Liquidity risk is the risk of the company being unable to meet its payment obligations when they fall due. Refer to note 28 of the group financial statements for information on how liquidity is managed.

The following table details the company's remaining contractual maturity for its financial liabilities. The table has been prepared based on undiscounted cash flows at the earliest date on which the company can be required to pay. The amounts include interest accrued to the payment date.

	<1 yearRm	1 – 5 yearsRm	>5 yearsRm	TotalRm
2023
Amounts owing to group companies	114	—	—	114
Trade and other financial payables	43	—	—	43
Lease liability	2	—	—	2
	159	—	—	159
2022
Amounts owing to group companies	350	—	—	350
Trade and other financial payables	90	—	—	90
Lease liability	3	2	—	5
	443	2	—	445

2022

METHODS AND ASSUMPTIONS USED BY THE COMPANY IN DETERMINING FAIR VALUES

The estimated fair value of financial instruments is determined, at discrete points in time, by reference to the mid-price in an active market wherever possible. Where no such active market exists for the particular asset or liability, the company uses valuation techniques to arrive at fair value, including the use of prices obtained in recent arm's length transactions, discounted cash flow analysis and other valuation techniques commonly used by market participants.

The fair value of unlisted investment has been valued based on the purchase agreement following the decision to dispose of the investment, while unlisted collective investment is valued using the closing unit price at year-end. Investment in government bonds is valued using the discounted face value of the bills.

The fair value of intercompany loans receivable and payable is based on the market rates of the loan and the recoverability.

The fair values of cash and cash equivalents, other receivables and trade and other financial payables approximate the respective carrying amounts of these financial instruments because of the short period to maturity.

In 2015, PPC Ltd entered into a put option agreement with the IFC in terms of which the latter can put its investment or part thereof in PPC Barnet to PPC Ltd. The put option may be exercised between 24 September 2021 and 24 September 2026 and under further specific circumstances detailed in the agreement. The agreement provides for the determination of the option price by way of a formula as follows:

(EBITDA x earnings multiple) – net financial debt

The option is out of the money and reflected at a zero fair value since 31 March 2020.

If the key unobservable inputs to the valuation model, being EBITDA and net financial debt, were 10% higher or lower, while all the other variables were held constant, the fair value of the put option would still be nil.

Due to the valuation technique used in determining the fair value of the put option liability, management judgements and estimations have been applied. The fair value calculated is impacted by the future financial performance of the DRC, the EBITDA multiple applied, exchange rates and expected timing of when the option will be exercised.

21. FINANCIAL RISK MANAGEMENT continued

FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES

The classification of financial assets and liabilities are set out below.

						Restated(a)
			31 March 2023			31 March 2022
		Carrying		Amortised	Carrying		Amortised
		amount	Fair value	cost	amount	Fair value	cost
	Notes	Rm	Rm	Rm	Rm	Rm	Rm
Financial assets
At amortised cost
Other financial receivables	4	—	—	—	90	—	90
Amounts owing by subsidiaries – non-current	3.4	624	—	624	495	—	495
Amounts owing by subsidiaries – current	3.5	184	—	184	204	—	204
At fair value through other comprehensiveincome
Investment in Old Mutual shares on Zimbabwe
Stock Market	3.2	2	2	—	3	3	—
MRG investment	3.2	6	6	—	—	—	—
At fair value through profit or loss
Investment in insurance cell captive	3.2	33	33	—	19	19	—
Zimbabwe blocked funds	3.3	—	—	—	32	32	—
Financial liabilities
At amortised cost
Amounts owing to subsidiaries	22	114	—	114	350	—	350
Trade and other financial payables	8	43	—	43	84	—	84

(a) Refer to note 1.4.1 for details regarding the prior period restatement.

CREDIT RISK MANAGEMENT

Credit risk is the risk of financial loss to the company if a counterparty to a financial instrument fails to meet its contractual obligations. The potential exposure to credit risk is represented by the carrying amounts of other receivables, amounts owing by subsidiaries, investment in Old Mutual shares and the MRG investment.

	March2023Rm	March2022Rm
Other financial receivables	—	90
Amounts owing by subsidiaries – non-current	624	495
Amounts owing by subsidiaries – current	184	204
Investment in Old Mutual shares on Zimbabwe stock market	2	3
MRG investment	6	—
Maximum credit risk exposure	816	792

Refer to note 3.4 and 3.5 for detail of the quantitative and qualitative considerations in relation to the ECL's on the above financial instruments.

for the year ended 31 March 2023

NOTES TO THE COMPANY FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

21. FINANCIAL RISK MANAGEMENT continued

	Valuation withreference to pricesquoted in activemarketsLevel 1Rm	Valuationbased onobservableinputsLevel 2Rm	Valuationbased onunobservableinputsLevel 3Rm	TotalRm
2023
Financial and other non-current assets
At fair value through profit or loss
Investment in insurance cell captive	—	—	33	33
At fair value through other comprehensive income
Investment in Old Mutual shares on Zimbabwe Stock Market	—	2	—	2
MRG investment	—	—	6	6
Net financial assets	—	2	39	41
2022
Financial and other non-current assets
At fair value through profit or loss
Investment in insurance cell captive	—	—	19	19
Zimbabwe blocked funds	—	—	32	32
At fair value through other comprehensive income
Investment in Old Mutual shares on Zimbabwe Stock Market	—	3	—	3
Net financial assets	—	3	51	54

Level 1 – Financial assets and liabilities that are valued accordingly to unadjusted market prices for similar assets and liabilities. Market prices in this instance are readily available and the price represents regularly occurring transactions, which have been concluded on an arm's length transaction.

Level 2 – Financial assets and liabilities are valued using observable inputs, other than the market prices noted in the level 1 methodology, and make reference to pricing of similar assets and liabilities in an active market or by utilising observable prices and market-related data. Refer to note 3.2 for detail of the observable inputs used to value the level 2 financial assets.

Level 3 – Financial assets and liabilities that are valued using unobservable data, and require management's judgement in determining the fair value. Refer to note 3.2 and 3.3 for detail of the valuation techniques and inputs used to value the level 3 financial assets.

MOVEMENTS IN LEVEL 3 FINANCIAL INSTRUMENTS

	2023Rm	2022Rm
Financial and other non-current assets (refer to notes 3.2 and 3.3)
Balance at the beginning of the year	51	57
New financial assets recognised	6	—
Fair value adjustment	89	5
Fair value adjustment – credit risk	(107)	(11)
Balance at the end of the year	39	51

Remeasurements are recorded as fair value adjustments through profit or loss.

22. RELATED-PARTY TRANSACTIONS

		Restated(a)
	March	March
	2023	2022
	Rm	Rm
Revenue – royalty fee for use of mining rights
PPC Cement SA (Pty) Ltd	6	5
	6	5
Dividends received from
PPC Botswana (Pty) Ltd	14	125
PPC Zimbabwe Ltd	155	95
PPC Ntsika Fund (Pty) Ltd	—	10
PPC International Holdings (Pty) Ltd	79	—
	248	230
Management fee income
PPC Cement SA (Pty) Ltd	—	(5)
PPC Group Services (Pty) Ltd	36	31
	36	26
Management fee expensePPC Group Services (Pty) Ltd	37	—
Interest paid to
PPC Cement SA (Pty) Ltd	—	97
PPC Group Services (Pty) Ltd	—	3
	—	100
Interest received from
PPC Cement SA (Pty) Ltd	1	1
PPC Group Services (Pty) Ltd (refer to note 2.1)	1	1
PPC Lime Ltd	—	8
	2	10
Other receivable
PPC Barnet DRC Manufacturing Company SA	—	90
Dividend receivable
PPC Botswana (Pty) Ltd	—	11
PPC Ntsika Fund (Pty) Ltd	—	7
Amounts due by (non-current assets)	—	18
PPC International Holdings (Pty) Ltd
– Shareholders' loan	624	495
Amounts due excluding finance lease receivable	624	495
PPC Group Services (Pty) Ltd (refer to note 2.1)	—	2
	624	497
Amounts due by (current assets)
PPC Aggregate Quarries (Pty) Ltd	82	80
PPC Botswana (Pty) Ltd	—	9
Pronto Building Materials (Pty) Ltd	11	10
Ulula Ash (Pty) Ltd	4	4
3Q Mahuma Aggregates and Concrete (Pty) Ltd	7	7
PPC Cement SA (Pty) Ltd	67	—
The PPC Black Managers Trust Funding SPV (Pty) Ltd	—	7
PPC Team Benefit Trust Funding SPV (Pty) Ltd	—	9
PPC Construction Industry Associations Trust Funding SPV (Pty) Ltd	—	39
PPC Education Trust Funding SPV (Pty) Ltd	—	19
PPC Community Trust Funding SPV (Pty) Ltd	—	14
PPC Zimbabwe Ltd	13	13
Amounts due excluding expected credit losses and finance lease receivable	184	211
Expected credit losses	—	(7)
Amounts due excluding finance lease receivablePPC Group Services (Pty) Ltd (refer to note 2.1)	1842	2042
	186	206

PPC LTD SHAREHOLDER ANALYSIS

as at 31 March 2023

Company: PPC Ltd Register date: 31 March 2023 Issued share capital: 1 553 764 624

Shareholder spread

Distribution of shareholders

	Number of		Number of
Shareholder spread	shareholdings	%	shares	%
1 – 1 000 shares	37 720	79,50	4 605 807	0,30
1 001 – 10 000 shares	6 428	13,55	23 489 953	1,51
10 001 – 100 000 shares	2 608	5,50	84 305 628	5,43
100 001 – 1 000 000 shares	530	1,12	161 396 825	10,39
1 000 001 shares and over	130	0,27	406 732 101	26,18
10 000 001 shares and over	29	0,06	873 234 310	56,20
Totals	47 445	100,00	1 553 764 624	100,00
	Number of		Number of
Distribution of shareholders	shareholdings	%	shares	%
American Depositary Receipts	1	0,00	589 146	0,04
Banks/brokers	111	0,23	214 500 079	13,81
Close corporations	99	0,21	10 464 958	0,67
Empowerment	6	0,01	12 755 130	0,82
Endowment funds	38	0,08	2 083 688	0,13
Individuals	45 388	95,66	194 405 066	12,51
Insurance companies	56	0,12	68 406 164	4,40
Investment companies	4	0,01	624 348	0,04
Medical schemes	25	0,05	12 139 286	0,78
Mutual funds	162	0,34	492 179 219	31,68
Other corporations	81	0,17	519 952	0,03
Private companies	286	0,60	57 456 238	3,70
Public companies	7	0,01	5 541 524	0,36
Retirement funds	494	1,04	420 719 874	27,08
Treasury shares	2	0,00	31 057 617	2,00
Trusts	685	1,44	30 322 335	1,95
Totals	47 445	100,00	1 553 764 624	100,00
	Number of		Number of
Public/non-public shareholders	shareholdings	%	shares	%
Non-public shareholders	21	0,04	279 468 038	17,99
Directors and prescribed officers of the company	3	0,01	235 655 291	15,17
Empowerment holdings	16	0,03	12 755 130	0,82
Treasury shares	2	0,00	31 057 617	2,00
Public shareholders	47 424		99,96 1 274 296 586	82,01
Totals	47 445		100,00 1 553 764 624	100,00
			Number of
Beneficial shareholders holding 3% or more			shares	%
Government Employees Pension Fund			168 048 929	10,82
M&G Investments			96 538 606	6,21
Value Capital Partners H4 QI Hedge Fund			90 571 858	5,83
Old Mutual			87 460 405	5,63
Eskom Pension & Provident Fund			60 263 004	3,88
Fidelity Investments			55 984 084	3,60
Alexander Forbes Investments			49 765 673	3,20
Totals			608 632 559	39,17
Institutional shareholders holding 3% or more
Value Capital Partners*			246 300 866	15,85
M&G Investments			214 649 608	13,81
Public Investment Corporation			128 934 242	8,30
Camissa Asset Management			94 148 008	6,06
Sanlam Investment Management			68 161 605	4,39
Fidelity Investments			55 984 084	3,60
Centaur Asset Management			50 575 928	3,26
Totals			858 754 341	55,27

Public/non-public shareholders

Beneficial shareholders holding 3% or more

* Value Capital Partners are investment advisers to third-party funds which have been aggregated and have an indirect interest in a fund.

NOTES TO THE COMPANY FINANCIAL STATEMENTS continued

for the year ended 31 March 2023

23. EVENTS AFTER REPORTING DATE

There have been no events after the reporting date that warrant disclosure in these annual financial statements. Refer to note 33 of the group annual financial statements.

24. ADDITIONAL DISCLOSURE

Refer to the consolidated financial statements for additional disclosure on the following:

Description	Notes
Accounting policies	1.2
Directors' remuneration and interest	29

25. GOING CONCERN

In determining the appropriate basis of preparation of the annual financial statements, the directors are required to consider whether the company can continue as a going concern for the foreseeable future.

The directors' assessment of going concern has focused on three principal areas, namely:

• 1. The sustainability or viability of the company, or its ability to continue trading as a going concern. The assessment has included, inter alia, current trading trends of its underlying investments, basis of budget preparation and key assumptions underpinning the forecasts of its underlying investments, and the impact of stress testing on such forecasts
• 1. The solvency of the company, whether the fair value of assets exceeds the fair value of liabilities, including any contingent assets and liabilities to the extent applicable and likewise the ability to settle all debts as they fall due until at least 30 June 2024
• 1. The liquidity of the company for the next 12 months and beyond, considering whether the company has sufficient liquidity and headroom (the level of unutilised but available facilities) up to 30 June 2024

The company forms part of the broader PPC group which operates a central treasury for the South African operations. In terms of these arrangements, PPC Cement SA is the only borrower in South Africa and funds the cash needs of the South African companies and all excess cash is swept to the central treasury account on a daily basis. The South African companies are jointly and severally liable for the facilities, the result of which is that the liquidity and going concern assessments of each South African entity are interlinked with the assessments of the group as a whole. A detailed assessment of the viability, solvency and liquidity is presented in note 36 of the 31 March 2023 audited consolidated group annual financial statements.

COMPANY SOLVENCY

The company's balance sheet is technically solvent. The fair value of assets exceeds the fair value of liabilities for PPC Ltd, whereby the total carrying value of assets is estimated at R5 233 million, compared to total balance sheet liabilities of R252 million.

CONCLUSION

Financial plans and forecasts inherently include uncertainty and any significant deviations in the assumptions made may cast doubt on the company's ability to continue as a going concern and its ability to realise assets and discharge liabilities in the normal course of business.

As the company is a guarantor in the group's pooled funding arrangements, its liquidity and ability to continue as a going concern is affected by the group's ability to execute on the actions as stated in note 36 of the 31 March 2023 audited consolidated group annual financial statements.

The directors have considered the financial plans and forecasts in detail, including sensitivity analyses based on various adverse scenarios, and based on the information available to them and are of the opinion that the going concern assumption is appropriate in the preparation of the financial statements.

The directors have therefore prepared the financial statements on a going concern basis.

	March2023Rm	Restated(a)March2022Rm
Amounts due to (current liabilities)(b)
PPC Cement SA (Pty) Ltd	—	146
PPC Group Services (Pty) Ltd	102	198
PPC South Africa Holdings (Pty) Ltd	12	—
PPC Barnet DRC Manufacturing Company SA	—	6
	114	350

(a) Refer to note 1.4.1 for details regarding the prior period restatement. (b) The loans have no fixed terms of repayment and are unsecured. The loans are classified as current as the company can demand repayment immediately.

Refer to note 29 of the group annual financial statements for directors' emoluments paid to directors of the company who are considered

related parties.

Refer to notes 3.4 and 3.5 for the terms of the amounts due to subsidiaries.

22. RELATED-PARTY TRANSACTIONS continued

CORPORATE INFORMATION

PPC LTD

Incorporated in the Republic of South Africa Registration number: 1892/000667/06 JSE code: PPC ZSE code: PPC JSE ISIN: ZAE 000170049 "PPC" or "company" or "group"

DIRECTORS

PJ Moleketi (chair), R van Wijnen* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo, CH Naude, D Smith, MR Thompson * Dutch ** Danish

REGISTERED OFFICE

148 Katherine Street, Sandton, South Africa (PO Box 787416, Sandton, 2146, South Africa)

TRANSFER SECRETARIES SOUTH AFRICA

Computershare Investor Services (Pty) Ltd Rosebank Towers, 15 Biermann Avenue, Rosebank Private Bag X9000, Saxonwold, 2132

TRANSFER SECRETARIES ZIMBABWE

Corpserve (Pvt) Ltd 2nd Floor, ZB Centre, corner 1st Street and Union Avenue, Harare, Zimbabwe (PO Box 2208, Harare, Zimbabwe)

COMPANY SECRETARY

KR Ross 148 Katherine Street, Sandton, South Africa (PO Box 787416, Sandton, 2146, South Africa)

SPONSOR

Questco Corporate Advisory (Pty) Ltd Ground Floor, Block C, Investment Place, 10th Road Hyde Park, Johannesburg, 2196

FORWARD LOOKING STATEMENT

This report, including statements on the demand outlook, PPC's expansion projects and its capital resources and expenditure, contains certain forward looking views that are not historical facts and relate to other information which is based on forecasts of future results and estimates of amounts not yet determinable. By their nature, forward looking statements involve uncertainties and the risk that these forward looking statements will not be achieved. Although PPC believes the expectations reflected in these statements are reasonable, no assurance can be given that these expectations will prove correct. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, outcomes could differ materially from those set out in the forward looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment, other government action and business and operational risks.

Forward looking statements apply only as at the date on which they are made. PPC does not undertake to update or revise them, whether arising from new information, future events or otherwise. While PPC takes reasonable care to ensure the accuracy of information presented, it accepts no responsibility for any damages – be they consequential, indirect, special or incidental, whether foreseeable or unforeseeable – based on claims arising out of misrepresentation or negligence in connection with a forward looking statement. This report is not intended to contain any profit forecasts or profit estimates, and some information in this report may be unaudited.