PPC (PPC) investor relations material

Executive summary

• FY 2025 marked a significant turnaround, with operational and cultural reset driving improved results and early delivery on the strategic plan.

• Organisational changes and turnaround initiatives led to improved performance in a flat market, launching a platform for long-term growth.

• The company focused on competitiveness, cost discipline, and operational efficiency, resulting in sustainable improvements rather than one-off cost cuts.

• Strategic investments, including a new integrated plant in the Western Cape, position the company for future market leadership.

• Resumed ordinary dividend payments in South Africa for the first time since 2016, reflecting strong cash generation and balance sheet strength.

Financial highlights

• Group EBITDA rose 28% year-over-year to R1,593 million, with margin up 3.8 percentage points to 16.1%.

• Free cash flow from continuing operations increased to R1,049 million (FY24: R260 million).

• Headline earnings per share increased 111% to $0.40; headline EPS from continuing operations rose to 17.6 cents.

• Ordinary and special dividends totaling R734 million were paid, with ordinary dividend doubled to 40 cents per share.

• Net finance costs reduced to R43 million (FY24: R89 million) due to lower borrowings and improved pricing.

Outlook and guidance

• FY 2027 EBITDA margin targeted at 17%, with potential upside if macro conditions improve.

• Step change in results expected from FY 2028 with the new Western Cape plant and solar energy project in Zimbabwe, aiming for EBITDA margin above 20%.

• Capital allocation remains disciplined, with ROIC expected to surpass WACC by FY 2028.

• Plans are based on a low to no growth demand scenario, but company is positioned to capture upside if construction market recovers.

• Expect continued incremental margin improvements and focus on margin-accretive sales under current demand conditions.