INTEGRATED REPORT 2023
DRIVING PERFORMANCE TO SUSTAIN OUR PURPOSE
2023 CONTENTS
CHAPTER 1 | CHAPTER 2 | CHAPTER 3 | CHAPTER 4 | CHAPTER 5 | |||||
About this report | IFC | PPC at a glance | 8 | PPC's Value Creation Framework | 15-17 | Financial capital | 39-43 | Fostering an ethical culture | 86-87 |
Chairman's report | 3-4 | PPC's footprint | 9 | Driving performance | 18-20 | Manufactured capital | 44-53 | Transparent accountability | 88-90 |
CEO's report | 5-6 | Alignment with the United | 10-13 | External environment | 21-22 | Human and intellectual capital | 54-68 | Corporate governance review | 91-97 |
Nations SDGs | Stakeholder management | 23-26 | Natural capital | 69-80 | Audit, risk and compliance | ||||
Customer review | 27-30 | Social and relationship capital | 81-84 | committee report | 98-100 | ||||
Social, ethics and transformation | |||||||||
Material risks and opportunities | 31-37 | ||||||||
committee report | 101-105 | ||||||||
Strategy and investment | |||||||||
committee report | 106-107 | ||||||||
Reward and talent committee | |||||||||
report | 108-110 | ||||||||
Remuneration report | 111-126 |
CHAPTER 6 | |
Independent limited assurance | |
report | 128-129 |
GRI index | 130-136 |
King IV compliance | |
supplementary report | 137-142 |
Glossary | 143-144 |
Corporate information | 145 |
Forward looking statement | 146 |
REPORTING SCOPE AND BOUNDARY
This integrated report (IR) details the financial and non-financial information for the year ended 31 March 2023 (FY23), including significant events after year-end and up to board approval on 21 July 2023. PPC's report provides concise material information on its operational performance (page 44) against the strategic focus areas of the Value Creation Framework (page 15), stakeholder relationships (page 23), governance practices (page 91) and material risks and opportunities (page 31). PPC's disclosures include the financial and non-financial performance of the following segments of the group:
- The cement business segments, comprising cement manufacturing plants, milling facilities and sales depots located in South Africa, Botswana, Zimbabwe and Rwanda
- The materials business segment, comprising readymix concrete, aggregates and fly ash plants across South Africa
PPC's audit, risk and compliance committee (ARCC) report on pages 98 to 100 provides annual internal assurance relating to the assurance plan's execution.
PPC used the GRI Standards as a reference guide for the FY23 reporting period.
Integrated reporting | Financial reporting |
boundary | |
boundary | |
Annual financial | |
IR* | |
statements (AFS) | |
A, B, C, D and F | |
B, C, D and E | |
Notice of the FY23 | FY23 King IV |
application | |
annual general meeting (AGM) | |
register | |
B, C and D | |
A | |
Legend
- Integrated Reporting Framework
- King IV Report on Corporate Governance™ for South Africa, 2016 (King IV**)
- Johannesburg Stock Exchange (JSE) Listings Requirements
- The Companies Act 71 of 2008, as amended (Companies Act)
- International Financial Reporting Standards (IFRS)
- Global Reporting Initiative (GRI) Standards
For detailed information on PPC's operational performance, refer to pages 44 to 53.
For comprehensive information on PPC's human capital, environmental and social performance, refer to
pages 54 to 84.
* Limited assurance - refer to the independent limited assurance report on pages 128 to 129.
** Copyright and trademarks are owned by the Institute of Directors in Southern Africa NPC and all of its rights are reserved.
Find PPC's reporting suite at www.ppc.africa
ABOUT THIS REPORT
PPC's IR provides a holistic yet concise view of the group's operations in four countries across sub-Saharan Africa.
While the report is aimed at shareholders and lenders, it includes information that will interest all stakeholders. In this report, PPC explains how it creates, preserves or erodes value for stakeholders over the short-, medium- and long-term, and
includes information on the company's human capital, environmental and social performance.
CHAPTER 1
ABOUT THIS REPORT
BOARD APPROVAL
The PPC board, with support from the ARCC, acknowledges its responsibility in ensuring the integrity of this report and that it fairly details PPC's FY23 performance.
The board is satisfied that this IR complies in all material aspects with the Integrated Reporting Framework and is confident that the report is an accurate account of all the material issues and core strategic commitments, risks and opportunities of the group, presented in a balanced and fair manner.
The board unanimously approved the FY23 IR on 21 July 2023. It will be presented to shareholders at the AGM on 6 September 2023.
DIRECTOR | Signature |
Title | |
Phillip Jabulani (Jabu) Moleketi
Independent chairman
Roland van Wijnen
Chief executive officer
Brenda Berlin
Chief financial officer
Kunyalala Maphisa
Independent non-executive director (NED)
Noluvuyo (Nono) Mkhondo
Independent non-executive director
Nonkululeko Gobodo
Independent non-executive director
Daniel Luke Smith
Independent non-executive director
Bjarne Hansen
Independent non-executive director
Charles Naude
Independent non-executive director
Mark Richard Thompson
Independent non-executive director
PPC INTEGRATED REPORT 2023 1
THE SIX CAPITALS
Social and | Human | Intellectual | Manufactured | Financial | Natural |
relationship | capital | capital | capital | capital | capital |
capital |
VALUE CREATION FRAMEWORK
Governance | Engaged | Process | Financial | Delighted | Purpose and |
and | people | excellence | Performance | customers | CSR |
compliance |
STAKEHOLDERS
Providers | Government | Suppliers | Employees and | Customers | Industry |
of capital | and regulators | and local | labour unions | associations, | |
and insurers | business | media, | |||
(including | communities, | ||||
investors, | NGOs and | ||||
shareholders | others | ||||
and banks) |
PPC'S PURPOSE
TO EMPOWER PEOPLE TO EXPERIENCE A BETTER QUALITY OF LIFE.
REPORT NAVIGATION
The following navigation icons appear throughout this IR for ease of reference:
Refers to related information
in the IR.
Refers to additional information available on PPC's website at www.ppc.africa
STAKEHOLDER FEEDBACK
PPC appreciates your feedback on its FY23 integrated annual report. Please contact the group company secretary with any comments on this IR:
Kevin Ross kevin.ross@ppc.co.za +27(11) 386 9585
CHAPTER 1
ABOUT THIS REPORT continued
PPC's Value Creation Framework describes integrated thinking as detailed in the Integrated Reporting Framework's six capitals, and depicts how the company creates value for stakeholders over time.
PPC has embraced integrated thinking internally, and it guides the business in creating a sustainable organisation.
INTEGRATED THINKING
PPC uses the six capitals to drive its integrated thinking to guide the company in creating value across the business for all stakeholders. The Value Creation Framework demonstrates the importance of value creation throughout the organisation - investors provide financial capital and PPC aims to provide suitable returns. The company does so by ensuring customers are delighted, employees remain safe and engaged through excellent processes, and PPC's communities and regulators are satisfied.
Purpose and corporate social responsibility (1)
DELIGHTED | ENGAGED | PROCESS | ||||||||||||||||
CAPITAL PROVIDED | CUSTOMERS | PEOPLE | EXCELLENCE | FINANCIAL PERFORMANCE | ||||||||||||||
extra mile | ||||||||||||||||||
(1) | (2, 3) | (4, 6) | ||||||||||||||||
Willing to | World-class operations, | |||||||||||||||||
Employees | lowest possible | |||||||||||||||||
pay premium | ||||||||||||||||||
willing to go the | cost to customers, | |||||||||||||||||
prices | best environmental | |||||||||||||||||
performance | ||||||||||||||||||
Governance and compliance
For more information on PPC's material risks, refer to pages 31 to 37.
1 | Social and relationship | As a responsible corporate citizen, PPC partners with customers, | ||
communities, suppliers and other stakeholders in dynamic and | ||||
capital | ||||
responsive relationships. | ||||
2 | Human capital | PPC realises its purpose by empowering its people through a safe and | ||
healthy, engaging, rewarding and meaningful working environment. | ||||
3 | Intellectual capital | Innovation is critical to delivering quality products and affordable | ||
services, and PPC consistently seeks to improve its product offering. | ||||
4 | Manufactured capital | Efficient management, optimisation and maintenance of PPC's assets | ||
(plants, factories and quarries) ensure stability and growth. | ||||
5 | Financial capital | PPC manages its shareholders' investments in the business with diligent | ||
capital allocation and a drive to create value for all stakeholders. | ||||
6 | PPC's commitment to operating a sustainable business includes | |||
Natural capital | environmental impact management. PPC reduces its carbon footprint | |||
through various environmental initiatives, such as air quality | ||||
management and water and land use. | ||||
MATERIALITY
Material risks are top-of-mind issues that could substantially impact the group's ability to create value. PPC's materiality determination process is an essential step in establishing the company's approach to creating sustainable value for stakeholders. The group's senior leaders and management identify material risks by assessing the challenges, risks and opportunities facing the company.
PPC sources inputs and considerations of these issues from:
- Group and divisional strategies
- A group-wide risk assessment
- External and internal outlook
The ARCC assesses and approves the material risks and recommends them to the board for approval. The material risks are frequently evaluated to ensure PPC's strategy remains relevant in an evolving operating environment.
Effective management of the risks most material to PPC's business is essential to sustain the value created for stakeholders. The content of this IR examines those issues that could substantively impact value creation over time.
PPC INTEGRATED REPORT 2023 2
CHAPTER 1
CHAIRMAN'S REPORT
While the past year presented challenges throughout our regions, we remain resilient. We see many opportunities for our business and believe that our trajectory remains strong with a multi-skilled and passionate workforce.
Jabu Moleketi
Chairman
21 July 2023
OPERATING ENVIRONMENT
A persistent environment of low economic growth in our main South African market confronts us. The failure of major infrastructure programmes to materialise, and reduced investment in a low-growth and uncertain economy have resulted in depressed demand. The issue of imports remains unchanged from the previous year, compounding the situation - as does an environment of geopolitical uncertainty.
Given the challenges in our external environment, we need to manage efficiencies and margins across our value chains - from raw materials to our consumers.
To ensure the efficiency of our equipment, we focus on human capital, training to maximise the efficiency of our production and continuous service and maintenance.
South Africa was particularly affected by macro-economic and structural factors and we saw Rwanda and Zimbabwe perform well in comparison. We are acutely aware of South Africa's underperformance and need to ensure efficiencies and cost structures are managed to increase shareholder benefit and value.
PPC INTEGRATED REPORT 2023 3
This difficult environment likewise confronts our peers and competitors and we must remain alert to our markets, produce relevant products for those markets and price them correctly.
OUR PEOPLE
We are proud of our safety performance and decrease in injuries over the year. However, even a single injury is one too many and we continue to create and maintain an environment in which safety risks are closely managed and mitigated.
PPC does well in supporting communities near its operations and entrenching its enterprise development initiatives. In Rwanda and Zimbabwe, particularly, we supported the establishment of enterprises that have proven sustainable beyond our involvement. Our end goal is to create long-term economic activity that extends beyond the lifespan of our operations.
Jabali, our human capital framework, is an essential component of our work to build an environment that is supportive and conducive to high performance, in which excellence is expected and performance appropriately
awarded. The ethical underpinnings of our culture are supported by our anonymous whistleblower reporting platform, education and training, and by ensuring an ethical culture is embedded from the top.
Building an organisation that meets the needs of the future means we must create an adaptable workforce capable of learning and remaining productive in the face of new technologies and processes, without constraints on their performance. The mining industry has long been male dominated and I would like to see that change more quickly. We are managing this area closely, ensuring we create an environment where women feel safe and empowered.
GOVERNANCE AND LEADERSHIP
I am confident that PPC's governance is well-led. Over the past few years, we have paid attention to any gaps in board skills and today we have a competent, technically skilled board that is diverse in terms of gender, race, knowledge and experience. We ensure that the board operates effectively and complies with the Companies Act, King IV and JSE Listings Requirements.
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PPC Ltd. published this content on 28 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2023 16:34:21 UTC.