PPC : AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

DRIVING PERFORMANCE TO SUSTAIN OUR PURPOSE

Audited annual financial statements 2023

PPC Ltd

148 Katherine Street

(Cnr Grayston Drive)

Sandton, 2196

Johannesburg

CONTENTS

FINANCIAL STATEMENTS

1. Approval of the financial statements
2. Chief executive officer and chief financial officer (financial director) responsibility statement

2 Certificate by company secretary

1. Preparer of the financial statements
2. Independent auditor's report

7 Directors' report

1. Audit, risk and compliance committee report

1. Consolidated statement of financial position
2. Consolidated statement of profit or loss

1. Consolidated statement of other comprehensive income
2. Consolidated statement of changes in equity
3. Consolidated statement of cash flows
4. Segmental information

1. Notes to the consolidated financial statements

1. Company statement of financial position
2. Company statement of profit or loss

1. Company statement of other comprehensive income
2. Company statement of changes in equity
3. Company statement of cash flows
4. Notes to the company financial statements

1. PPC Ltd shareholder analysis
2. Corporate information

FEEDBACK

We encourage feedback on our integrated reporting suite.

Kindly direct feedback to the group company secretary,

Mr Kevin Ross

[e-mail] [phone]

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

APPROVAL

OF THE FINANCIAL STATEMENTS

for the year ended 31 March 2023

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:

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

PPC AUDITED ANNUAL FINANCIAL STATEMENTS 2023

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

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

1. 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)
2. 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
3. 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
4. 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
5. 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.

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).

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.

OUR AUDIT APPROACH

OVERVIEW

OVERALL GROUP MATERIALITY

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

GROUP AUDIT SCOPE

• 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 coverage across the Group.
• We performed specified procedures over two of the components due to the risk and financial impact associated by these components.
• We performed analytical procedures on components not in scope for audit or specified procedures.

KEY AUDIT MATTERS

• Impairment assessment of the Rwanda cash-generating-unit (CGU); and
• Accounting for the loss of control in PPC Barnet.

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).

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.

B Berlin

Chief financial officer 25 June 2023

Overall group materiality	R74 million
How we determined it	0.75% of consolidated revenue
Rationale for the materiality	We chose consolidated revenue as the benchmark because, in our view, it is the benchmark against which the
benchmark applied	performance of the Group is most commonly measured by users for evaluating the Group's performance and
	reflecting its core operational activities.
	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
	materiality.

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INDEPENDENT

AUDITOR'S REPORT continued

INDEPENDENT

AUDITOR'S REPORT continued

HOW WE TAILORED OUR GROUP AUDIT SCOPE

components to be able to conclude whether sufficient appropriate

KEY AUDIT MATTER

HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER

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

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.

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

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.

KEY AUDIT MATTER	HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
IMPAIRMENT ASSESSMENT OF THE RWANDA CGU	We obtained the Group's impairment assessment and tested the
Refer to the following accounting policies and notes to the consolidated	mathematical accuracy of management's calculations and the
financial statement for details:	reasonableness of the key assumptions, including discount rate and
• Note 1.3: Significant judgements made by management and sources	terminal growth rate estimates by performing the following procedures:
of estimation uncertainty	We utilised our valuation expertise to assess the valuation methodology
• Note 4: Goodwill
applied by management to be consistent with industry practice and in line
• Note 21: Impairments and reversals of impairments
with the requirements of IAS 36.

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

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.

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

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

the restructure of senior lender debt being met resulted in a loss of control.

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 value- in-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 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 long- term 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.

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.

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INDEPENDENT

AUDITOR'S REPORT continued

DIRECTORS'

REPORT

for the year ended 31 March 2023

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.

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

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.

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