Sephaku Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/003306/06)
Share code: SEP
ISIN: ZAE000138459
(“SepHold” or “the Company”)




                 Sephaku Cement 2024 financial results and Métier operational update
Following Dangote Cement PLC's ("DCP") 2024 financial results announcement for the period ended
31 December 2024, SepHold reports on Dangote Cement SA (Pty) Ltd.'s ("Sephaku Cement",
"SepCem" or "the associate") performance. The commentary also includes an update on Métier Mixed
Concrete (Pty) Ltd.'s ("Métier" or "the subsidiary") operational performance.

Commentary
Sephaku Cement


Sales, Revenue and Profitability
SepCem's after-tax profit for the 12 months ended 31 December 2024 was R42.6 million, compared to
R41.9 million in 2023. Of this, R15.3 million (2023: R15.1 million) will be included in SepHold’s results
for the period ending 31 March 2025, as SepHold'.

For the 12 months ended 31 December 2024, sales volume decreased by 4% year-on-year ("y-o-y"),
resulting in a 1.4% decline in revenue, which amounted to R2,785 million (2023: R2,823 million).

EBITDA for the year dropped by 11.2%, from R361.2 million to R320.7 million. Sephaku Cement
experienced strong EBITDA growth in the first half of 2024, with an increase from R106.9 million to
R146.7 million. However, as highlighted in the Interim Results for the nine months ending 30 September
2024, the improved performance in the first half was subsequently negatively impacted by the impact
of unplanned kiln stoppages for repairs, which led to overheads being absorbed by lower production
levels. These disruptions carried over into the fourth quarter, resulting in an overall decrease in EBITDA.

SepCem continues to implement various cost-saving initiatives, measured by the Dangote Group, to
mitigate the negative impact of low demand in the market. Furthermore, an easing of finance cost and
a lower depreciation charge contributed to maintaining a flat profit after-tax number.


Debt management
At 31 December 2024, the bank loan capital balance was R135 million following the repayment of R183
million, which included the repayment of accrued interest of R27 million. Bank loan capital attracts an
interest rate equal to the preceding 3-month JIBAR plus 3.25%. DCP’s subordinated loan balance was
R872 million, at an interest rate of JIBAR plus 4%, which is accrued and capitalised.

SepCem repayments are current, and the associate is in full compliance with the loan covenants.


The full Dangote Cement PLC's results, which incorporate SepCem’s results for the year ended 31
December 2024, can be accessed at the following link:
https://www.dangotecement.com/wp-content/uploads/2025/03/Dangote-Cement-Full-Year-2024-Account.pdf
Métier

Sales, Revenue and Profitability
Métier was impacted by deteriorating economic conditions and ongoing challenges in the construction
sector, resulting in lower sales volumes for the 11 months ended 28 February 2025 in comparison to
the prior period. However, it still managed to achieve an increase in EBITDA based on management’s
unaudited accounts. This performance improvement was primarily driven by cost-saving measures and
higher selling prices, which outpaced inflation.



Debt management
Métier utilizes various vehicle and property finance facilities to fund its fleet and expansion projects. The
current utilization stands at R125 million, from an available R200 million, in addition to an overdraft
facility of R40 million. The net debt position at the end of February 2025 was R75 million.



Outlook
While the Government of National Unity (GNU) remains intact, economic outcomes remain stagnant.
However, the commencement of certain government infrastructure projects has been observed, and
these are expected to contribute to the growth of the construction sector. As a leading indicator for
construction activity, data on building plans passed continues to indicate constrained demand for
building materials.

Given the current economic conditions, a defensive approach is necessary, with the flexibility to respond
to short-term opportunities as they arise.


Any forward-looking information in this announcement has not been reviewed or reported on by the Company's external auditors.
All Sephaku Cement figures included below are shown on a 100% basis and do not reflect SepHold's 36% attributable interest
unless otherwise stated.




Centurion
31 March 2025
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Enquiries contact: Neil Crafford-Lazarus                                    Sephaku Holdings            012 684 6300

Sponsor: Questco Corporate Advisory (Pty) Ltd

About Sephaku Holdings Limited
SepHold is a building and construction materials company with a portfolio of investments in the cement sector in South Africa.
The strategy of SepHold is to generate growth and realise value for shareholders through the production of cement and ready
mixed concrete in Southern Africa. The Company's core investments are a 36% stake in Dangote Cement South Africa (Pty) Ltd
(Sephaku Cement) and 100% in Métier Mixed Concrete (Pty) Ltd.
www.sephakuholdings.com