Group stakeholder engagement

Stakeholder group                        
Customers                        
Why we engage     Who is included     How we engage     Issues raised     Actions taken     Next steps

To remain competitive

Determine customer satisfaction

Obtain insights on new requirements, trends and competition

Retain customers

Attract new customers

Maintain and build strong brand affinity and preference, ensuring PPC is the cement brand of choice

Identify opportunities for growth and creating value

   

Retailers

Blenders

Concrete product manufacturers (formal and informal)

Readymix concrete suppliers

Building and civil contractors

Shoppers

   

Independent customer satisfaction surveys

Social, online and mobile media

Interaction in store during brand promotions

Site and store visits by sales team

Industry conferences and retail events

Technical support hotline and training events

Strategic sessions with customer senior management

    Value for money     Positioned IDM as a value-for-money offering in the PPC range    

Continue implementing a branding strategy that covers all PPC products under our corporate brand

Launch innovative products and solutions that will add value to our customers' businesses

A dedicated product support department ensures focused technical support and training

Increase brand equity through marketing support for PPC's materials

Integrated rebate system for cement portfolio (PPC and IDM) to be refined

The strong PPC brand will be leveraged across our product portfolio, making it easier to cross-sell

Newly acquired business products – 3Q Mahuma – will be PPC endorsed

 

Selling a materials package to the construction industry – cement, aggregates and readymix

           

Highly price-sensitive market

   

Flexible pricing mechanism responding to market nuances, selective by area, segment and product

   
           

More technical support in construction market

   

Restructured and increased the size of PPC product support department

   
           

Broader product offering and solutions

   

Launched precast product – Surecast
Launched P&L house brand to satisfy specific customer needs

   
           

The need to control/manage costs is key

   

Reduce cost of manufacture and optimise delivery

   
             

Justifying growing brand premium as price differential created by new competitors increases

   

Introduced a revenue growth incentive for PPC and IDM products

   
                           
Employees                        
Why we engage     Who is included     How we engage     Issues raised     Actions taken     Next steps

Employees are integral to our performance and the sustainability of our operations

To drive strong health and safety culture

   

Employees from: Head office Factories and sites Safika Cement Pronto Readymix 3Q Mahuma Concrete International operations

   

Leadership and team meetings, special information sessions

Key leader summits

Intranet, newsletters, presentations, briefings and One Vision video

CEO town hall sessions, lunch-time talks and Ask Darryll intranet portal

Employment equity and skills development committees

Annual functions (Diamond Awards, site awards)

Management roadshows/live internet broadcast

Internal staff surveys, climate surveys

Factory safety and environmental meetings

Union committee meetings, Women's Forum, group meetings

Monthly health and safety representative meetings

   

Uncertainties due to business challenges

   

Maintain communication and engagement on all business matters

   

Implement leadership development framework to align to new leadership competency model

Implement and roll out revised IDP system aligned to training initiatives

Standardise performance scorecard (contract) across the group

Continuously monitor and reinforce performance-driven culture

Continue to assist employees with credit worthiness programmes and saving initiatives so that they qualify for the housing support scheme

             

High turnover rate of black and female employees

   

Development and appointment of black and female employees

   
             

Behaviour and conduct of employees

   

Refresher training on code of conduct and roll out of group employee relations policy

   
               

Succession management

   

Talent reviews with action plans

   
               

Career path planning

   

Consolidated talent reviews to group succession plans to close the gaps

     
               

Learning and development

   

Continue to train and develop people according to the needs of the business and their individual development plan (IDP) Improving IDP process and monitoring

     
               

Remuneration and benefits

   

Ongoing communication on remuneration and benefits

     
               

Housing support scheme

   

In total, 78 people have completed housing transactions and PPC is helping employees with credit worthiness support and saving programmes to assist with affordability

     
               

Performance management (lack of consistency and standardised approach)

   

Reviewed and implemented an integrated performance management approach

     
Shareholders/investors                        
Why we engage     Who is included     How we engage     Issues raised     Actions taken     Next steps

Owners need regular and accurate information on PPC's performance and strategy

Comprehensive and transparent reporting enhances ability to conduct valuations on PPC

   

Shareholders

Buy-side analysts, fund managers

Sell-side analysts

Banks

Minorities/subsidiary boards

Media

   

JSE SENS announcements

Presentations

Circulars

Roadshows

Annual and interim results

Site visits

Annual general meeting

Corporate website and videos

Integrated report
   

Capital structure and rights offer process

    Successful rights offer improved capital structure    

Continuously improving disclosure

Increase engagement with analysts, shareholders and fund managers

Introduce educational series for investors (biannual)

Increase use of digital investor relations initiatives

           

AfriSam merger

    Continuous engagement on timelines and potential benefits of merger    
           

Derisking DRC project

    Strategies to reduce the project risks are being explored    
           

Structure of BEE III

    Work under way on BEE III    
               

Demand and price dynamics for cement industry

   

Investor site visits hosted at Slurry and in Zimbabwe
Conference and results presentations addressing key issues
Chairman, CEO, CFO and MDs videos for integrated report

     
               

SA cement margin erosion

         
               

Competitor activity

         
                 

Delivering international projects' business plans

         
                 

Slow economic growth in sub-Saharan Africa, liquidity crisis in Zimbabwe

         
                 

Share price performance

    Increasingly transparent reporting      
                 

Corporate governance

    Remuneration committee roadshows      
                 

Credibility of board and senior management

   

Perception survey with analysts and shareholders to elicit their views on board and management

     
Communities                        
Why we engage     Who is included     How we engage     Issues raised     Actions taken     Next steps

Understand community needs, communicate PPC's corporate social investment (CSI) policy and strategy

   

Community forums including NGOs

Stakeholders from our projects

   

Public forums

Meetings

Internet

Community engagement forum meetings

   

Sustainable funding for NGOs

   

Given the revised PPC strategy and new funding policy, we have opened the process to all NGOs via our website Strategic partners identified in areas of operation

   

Rolled out mobile science labs in 10 schools across the country. Measure impact on local communities and focus on high sales areas for new initiatives

Develop a monitoring and evaluating framework for progress with labs to measure SROI

Further engagement with communities, municipalities and regulators to identify local economic development projects that align with 2014 to 2018 social and labour plan

                   
 
                 

Impact is not profound in areas of operations

   

CSI spend now spread across areas of operations

   
                 

Too early to measure real impact of science project at schools

   

SROI will be done after a year

   
                 

No social return on investment (SROI) calculated to date

   

CSI policy developed and aligned to business goals

     
                 

Sustainability of local economic development projects

   

Identify projects that respond to the most pertinent basic needs of communities, eg water, roads and education

     
                 

In Ethiopia, no community intervention identified to date

   

Roll out of CSI strategy and community engagement planned for 2018

     
Government and regulators                        
Why we engage     Who is included     How we engage     Issues raised     Actions taken     Next steps

Mining licence approvals and conversions

Identification of local economic development projects

Approval of social and labour plans

Reporting progress on mining charter targets

Reporting progress on employment equity

Keep communities informed about our environmental activities and performance

Advocacy and collaborative engagement platform on regulatory and industry issues

   

Regular liaison with government departments at company level and through industry bodies

Municipal councils

Government and parastatals

Embassies

Environmental stakeholder forums

   

Conferences

Working groups

Meetings

Stakeholder forums

Participation in government public hearings and policy debates, written submissions (anti-dumping, carbon taxes)

Regular meetings with departments to establish changes or progress with projects

Site inspections

Conferences

Working groups

Factory inspections

   

Licence to operate

   

Social and labour plans for 2014 to 2018 submitted

   

Further engagement on licence amendments

Internal approval of BEE III and final presentation to DMR

Implement various environmental authorisation and licence requirements

Meet licence conditions through continual improvement at operations

Continue to seek approval for all new social and labour plans

           

Revised charter and mining rights scorecard

   

Presented and engaged on the proposed BEE III ownership transaction to DMR

   
           

Procurement progression

   

Identified non-compliant suppliers

   
            Employment equity analysis     Analysis consolidated in employment equity plans for new entities    
           

Air quality and waste

   

Invest in efficient technology

   
           

Health and safety compliance

   

All health and safety elements reviewed and complied with

     
           

Water use licence amendment and applications

   

Further engagement with treasury on design of tax regime for cement sector

     
           

Carbon tax

   

Carbon budget numbers submitted to DEA

     
           

Desired emission reduction outcomes

         
           

Postponement application for emission compliance

       
             

Environmental impact assessment appeal

   

Progress reports on social and labour plans. Mining charter targets submitted annually

     
Suppliers                        
Why we engage     Who is included     How we engage     Issues raised     Actions taken     Next steps

Build sound relationships that align with our business

Actively promote partnerships with strategic suppliers

Innovation and continuous improvement

Promote multiple sources of supply

Reward suppliers with proactive initiatives aligned with our environment programmes

Spread our spend to deserving local suppliers

   

PPC supplier base, with greater focus on our strategic suppliers

Targeted opportunities for exempt micro-enterprises and qualifying small enterprises

   

PPC engages with strategic suppliers annually through workshops, supplier assessments and industry forums

Continuous interaction throughout sourcing processes

Category managers and procurement officers continually monitor and manage commercial relationships with strategic suppliers to address delivery, quality, social, transformational (BBBEE), risk and environmental issues

Secure, transparent and stable relationships

   

Transformation – suppliers must have relevant black ownership – duly approved transformation plans aligned to PPC's expectations

   

Ensure received suppliers' transformation plans are incorporated into supplier agreements and monitored against set milestones

   

Maintaining preferential procurement points

Accelerate enterprise and supplier development

Dilute concentration of the few top suppliers and expand to broader base

Knowledge sharing and collaboration where suited

Establish supplier relationship management across the business, moving beyond strategic spend categories

Where spend exceeds R1 million, accelerate contracting with suppliers for targeted procurement opportunitie

Continue to engage vendors on revised codes of good practice – new BBBEE codes

Conduct supplier

 
             

Cost pressures

   

To minimise costs, we have focused on market analysis, understanding product characteristics and tracking indices/cost drivers to enable better price negotiations with strategic suppliers
Continuous improvement and innovation in procurement

   
             

Supplier management and performance

   

PPC procurement portal is the access point for potential vendors within a sound governance structure

   
             

New legislation from dti and DMR (mining charter)

   
  • Realise improved BBBEE targets
  • Continue programmes/ systems to identify BBBEE fronting
   
Media                        
Why we engage     Who is included     How we engage     Issues raised     Actions taken     Next steps

To provide context on our business in a transparent and credible way, and updates on achievements and developments across the group

   

Journalists across media categories

Industry stakeholders

   

Media events

Press releases

Digital platforms (website, social media)

Brand campaigns

Sponsored events

Media site visits

    Downgrade by S&P Global    

SENS announcement, analyst presentations, employee engagement

   

Rebuild trust in PPC's board and management team after the rights offer

Manage our reputation in established PPC markets

Build our reputation in new markets

Demonstrate delivery on our strategic objectives and goals by providing updates on key milestones achieved

Media monitoring for early detection of issues that could potentially impact PPC and opportunities to profile the group

              Rights offer    

SENS announcement, analyst presentations, media release, shareholder circular, dedicated webpage on PPC website, employee engagement

   
                Use of foreign labour on SK9 (PPC Slurry)    

Ongoing engagement with NUM, departments of home affairs and labour

   
               

Proposed merger of PPC with AfriSam

   

SENS announcement, analyst teleconference, media briefing and media release, employee engagement, customer letter

   
                 

Company performance in slowing economies with increasing competition

   

Ongoing media engagement, brand-building initiatives and leadership profiling

   
                 

Political instability in countries of operations

   

Ongoing media monitorin

     
Industry associations and academic institutions                        
Why we engage     Who is included     How we engage     Issues raised     Actions taken     Next steps

Identify relevant issues in the industry: present issues to government

Support skills and economic development

Align our strategy to future developments

Identify relevant issues in the industry: present issues to government

Support skills and economic development

Align our strategy to future developments

   

Industry forums:

  • Association of Cementitious Material Producers (ACMPSA)
  • South African Readymix Association
  • Aggregate & Sand Producers Association of Southern Africa
  • Concrete Society of Southern Africa (CSSA)
  • Green Building Council of South Africa (GBCSA)
  • South African National Standards (SANS) technical committee

Industry forums:

  • South African Road Pavement Forum
  • Institute of Architects(Gauteng and Pretoria)
  • Mining forums
  • Chamber of Mines (health and safety)
  • Tradesman associations
  • Department of Rural Development

PPC supports or sponsors a number of universities:

  • UCT – research unit CoMSIRU R1,1 million under a THRIP partnership
  • Stellenbosch University – sustainable infrastructure programme with school of engineering. Funding of R900 000 pa
  • Cape Peninsula University of Technology – research projects University of Johannesburg – fine arts and architecture public space and bench project
   

Industry forums: memberships, sponsorships and active participation in government engagements

2017
Imaginarium campaign completed platform with design innovation in six disciplines (film, sculpture, design, jewellery, fashion and architecture)


Cement and Concrete Cube web-based industry library and knowledge sharing

Public lectures and knowledge sharing at industry events through presentations, workshops and exhibits

Final year student projects/master’s dissertations as external examiners

Sponsorships for architecture master classes, professional development and industry institutions

   

Legislation on carbon tax

   

Quarterly and ongoing engagements with ACMPSA on lobbying government institutions on carbon tax legislation

   

13 Cool Capital benches, designed by final year TUT students and artists, placed in public spaces

PPC hosted continuing professional development lectures, workshops and continued the imaginarium initiatives to educate “design and manufacture in concrete”

Enterprise development assistance given to concrete beehives and vertical walls

Role of concrete in sustainable built environment – construction and infrastructure designed for the future

   

Expand our portfolio of services to customers by training them in cement and concrete technology Student engagements via lectures, master classes, student support

 
           

Need for skills development (technical/strategy) in rest of Africa operations

   
  • DRC established satellite basic engineering skills centre to create a pipeline for employment at operations
  • Trained nine plant operators at TSA and various SA operations for DRC operations
  • CIMERWA and DRC safety-related training such as lock-outs, conveyor belt and basic safety standards with a train-the-trainer component
   

 

 

           

Unavailability of accurate cement sales information for South Africa, depriving the country of an important economic activity indicator

   

Engaging with relevant authorities to lobby all producers to submit industry sales data