Group stakeholder engagement

Stakeholder group                        
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




Concrete product manufacturers (formal and informal)

Readymix concrete suppliers

Building and civil contractors



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

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

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



Buy-side analysts, fund managers

Sell-side analysts


Minorities/subsidiary boards



JSE SENS announcements




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

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



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


Environmental stakeholder forums



Working groups


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


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

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
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

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