Segmental information

for the year ended 31 March 2018

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The group discloses its operating segments according to the business units which are reviewed by the group executive committee. The operating segments are initially identified based on the products produced and sold and then per geographical location. The key operating segments are southern Africa cement, rest of Africa cement, lime, aggregates and readymix and group shared services.

      Cement
Consolidated   Southern Africa(a) Rest of Africa(b)
2018
Audited
Rm
2017
Audited
Rm
2018
Audited
Rm
2017
Audited
Rm
2018
Audited
Rm
2017
Audited
Rm
Revenue
Gross revenue  10 524  9 878    5 704  5 712    2 762  2 119 
Intersegment revenue(d)  (253) (237)   (205) (205)   —  — 
Total revenue(e)  10 271  9 641    5 499  5 507    2 762  2 119 
Operating profit before item listed below  1 004  1 233    827  861    389  347 
Empowerment transactions IFRS 2 charges  48  206    —  16   
Operating profit  956  1 027    827  845    387  345 
Fair value and foreign exchange gains/(losses) 143  (124)   (19) (5)   (69) (153)
Finance costs  675  741    265  214    338  168 
Investment income  52  27    42  11    18 
Profit before equity-accounted earnings  476  189    585  637    (2) 30 
Earnings from equity-accounted investments  (60)   —  —    (61) — 
Impairments and other exceptional items  (174) (10)   11  —    (168) (10)
Profit/(loss) before taxation  242  180    596  637    (231) 20 
Taxation  205  153    202  192    34  21 
Profit/(loss) for the year  37  27    394  445    (265) (1)
Attributable to:                  
Shareholders of PPC Ltd  149  93    394  445    (153) 65 
Non-controlling interests  (112) (66)   —  —    (112) (66)
  37  27    394  445    (265) (1)
Basic earnings per share (cents) 10    26  39    (10)
Depreciation and amortisation  876  832    373  374    347  298 
EBITDA(f) 1 880  2 065    1 200  1 235    736  645 
EBITDA margin (%) 18,3  21,4    21,8  22,4    26,7  30,4 
Assets                 
Non-current assets  12 910  14 192    4 272  4 184    6 817  8 113 
Non-current assets held for sale  34  38    —  —    34  38 
Current assets  3 262  3 805    1 235  1 468    1 375  1 334 
Total assets  16 206  18 035    5 507  5 652    8 226  9 485 
Investments in property, plant and equipment  801  2 234    460  939    235  1 181 
Liabilities                 
Non-current liabilities  5 909  5 626    2 181  2 007    5 608  5 619 
Current liabilities  2 409  4 024    796  792    1 186  1 382 
Total liabilities  8 318  9 650    2 977  2 799    6 794  7 001 
Capital commitments (refer note 21) 596  1 071    482  716    49  310 

Materials business        
Lime   Aggregates and readymix   Group services and other(c)  
2018
Audited
Rm
2017
Audited
Rm
2018
Audited
Rm
2017
Audited
Rm
2018
Audited
Rm
2017
Audited
Rm
 
Revenue
Gross revenue  849  818    1 209  1 229    —  —    
Intersegment revenue(d)  (48) (32)   —  —    —  —    
Total revenue(e)  801  786    1 209  1 229    —  —    
Operating profit before item listed below  95  119    (22) 74    (285) (168)   
Empowerment transactions IFRS 2 charges  —    —    46  185    
Operating profit  95  117    (22) 73    (331) (353)   
Fair value and foreign exchange gains/(losses) —    (1) (1)   231  35    
Finance costs  24    20    28  352    
Investment income  18    15    (41)   
Profit before equity-accounted earnings  90  114    (28) 70    (169) (662)   
Earnings from equity-accounted investments  —  —    —  —      
Impairments and other exceptional items  —  —    (17) —    —  —    
Profit/(loss) before taxation  90  114    (45) 70    (168) (661)   
Taxation  24  29    18    (73) (96)   
Profit/(loss) for the year  66  85    (63) 64    (95) (565)   
Attributable to:                    
Shareholders of PPC Ltd  66  85    (63) 64    (95) (565)   
Non-controlling interests  —  —    —  —    —  —    
  66  85    (63) 64    (95) (565)   
Basic earnings per share (cents)   (4)   (6) (50)   
Depreciation and amortisation  40  46    79  77    37  37    
EBITDA(f) 135  165    57  151    (248) (131)   
EBITDA margin (%) 16,8  21,0    4,7  12,3    —  —    
Assets                   
Non-current assets  309  319    672  726    840  850    
Non-current assets held for sale  —  —    —  —    —  —    
Current assets  214  210    327  315    111  478    
Total assets  523  529    999  1 041    951  1 328    
Investments in property, plant and equipment  41  26    48  57    17  31    
Liabilities                   
Non-current liabilities  32  117    264  215    (2 176) (2 332)   
Current liabilities  83  86    170  176    174  1 588    
Total liabilities  115  203    434  391    (2 002) (744)   
Capital commitments (refer note 21)   38    25  27    
(a) Southern Africa comprises South Africa and Botswana.
(b) Rest of Africa comprises Zimbabwe, Rwanda, DRC, Mozambique and cross-border sales from southern Africa.
(c) Shared services and other comprises group shared services, BEE and group eliminations.
(d) All sales are concluded at an arm’s length. Segments are disclosed net of intersegment revenue.
(e) Revenue from external customers generated by the group’s material foreign operations is as follows: Botswana R438 million (2017: R427 million), DRC R144 million (2017: R24 million), Rwanda R804 million (2017: R733 million), and Zimbabwe R1 813 million
(2017: R1 352 million).
(f) EBITDA is defined as operating profit before empowerment transactions, IFRS 2 charges, depreciation, amortisation, financial charges and taxation.