Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — FY2023 Earnings Presentation
30 slides from Dangote Cement's earnings presentation, Mar 4, 2024
Slide 1: FY 2023 results
FY 2023 results AUDITED RESULTS FOR TWELVE MONTHS ENDED 31st DECEMBER 2023 4th March 2024 @dangotecement www.dangotecement.com
Slide 2: A Global Leader, Proudly African
A Global Leader, Proudly African Dangote Cement is sub-Saharan Africa’s largest and leading cement company, with operations in 10 African countries. We are resolute in transforming Africa, while creating sustainable value for all our stakeholders. 8 1 2 10 9 Integrated 7 52Mta Grinding 6 Our vision
Slide 3: SSA – macroeconomic environment
6 SSA – macroeconomic environment • Sub-Saharan Africa (SSA) is projected to grow at a faster pace of 4.0% in 2024, up from an estimated growth of 3.3% in 2023. However, challenges such5 as rising Currency depreciation against the Dollar ($ as price currency) inflation, currency depreciation and ele
Slide 4: Nigeria - macroeconomic environment
Nigeria - macroeconomic environment Real GDP Growth (%) 2023 Sector Contribution to GDP Movement in Oil Prices ($) 4.0% 3.4% Oil 120 3.1% 2.7% 5% Industries 3.0% 2.3% 18.6% 1.9% 100 2.0% 0.8% 1.0% 80 0.0% Services Agriculture 56.2% -1.0% 2017 2018 2019 2020 2021 2022 2023 25.2% 60 -2.0% Non-Oil -1.9
Slide 5: FY2023 snapshot: maximising diversification benefit
FY2023 snapshot: maximising diversification benefit FINANCIAL OPERATIONAL SUSTAINABILITY SDG Alignment 27% female Board Group revenue up 36.4% Strong pan-Africa volumes up representation to ₦2,208.1B 12.7% to 11.3Mt Diverse Board with 6 different nationalities Commenced operations at our Group EBITD
Slide 6: FY 2023: Dividend up 50% at ₦30.00 per share
FY 2023: Dividend up 50% at ₦30.00 per share Diversification benefit coming from a strong pan-Africa performance Year ended 31st December 2023 2022 Change Financial • Group revenues up 36.4%, largely due to improved price Sales volumes* ‘000t ‘000t % realisation amidst inflationary environment Niger
Slide 7: Group Financial Overview
Group Financial Overview Rewarding shareholding Income Statement 2023 ₦m 2022 ₦m % change Dividend paid (N’B) Revenue 2,208,090 1,618,323 36.4% 400 Cost of sales (1,006,278) (662,890) 51.8% 338 338 Declared dividend of Gross profit 1,201,812 955,433 25.8% 300 ₦30.00/share - up 50% 273 273 272 Gross
Slide 8: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Balance Sheet As at 31/12/23 As at 31/12/22 ₦m ₦m Property, plant and equipment 2,383,528 1,527,293 Other non-current assets 133,827 58,676 Intangible Assets 12,356 6,225 Current Assets 961,917 739,618 Cash and Cash Equivalents 447,097 283,843 Total Assets 3,938,725
Slide 9: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Focused on strong cash generation • Prudent capital allocation on dividend, income 1400 tax, capex and share buyback • Cash of ₦838.0B was generated from 116 338 operations for FY2023 Prudent capital 1200 allocation on • Share buyback programme: repurchased 838 divi
Slide 10: Nigeria – Decent performance in a challenging year
Nigeria – Decent performance in a challenging year FY 2023 average cement price across our operations, $/t • Volume declined due to a mix of factors, such as election uncertainties, 160.0 currency crunch, and the significant devaluation of the Naira. • Currencies across our operations depreciated in
Slide 11: Pan-Africa – Strong performance across board
Pan-Africa – Strong performance across board • Volumes up 12.7% to 11.3Mt, driven by healthy volume growth from Senegal, Congo and EBITDA ₦m Zambia. 286.0 264 • Pan-African volume accounts for 41.2% of Group volume, reinforcing our diversification strategy. 216.0 • Revenues up 123.2% to ₦925.9B, on
Slide 12: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 4Mt total market • Estimated market sales of • Estimated 6.9Mt total market sales in 2023 706Kt in 2023 sales in 2023 • DCP Cameroon relatively flat • Clinker exports to Cameroon • DCP sales of 2.5Mt in 2023 at 1.3Mt in 2023 commenced in June was u
Slide 13: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated over 6.5Mt total • Estimated total market sales • Estimated market sales of market sales in 2023 of 7Mt in 2023 863.3Kt in 2023 • DCP Ghana sold 316.3Kt of • DCP sold 1.6Kt of cement in • Pockets of stock shortages cement in 2023, up 19.7% the p
Slide 14: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • Dangote Cement South Africa • Estimated 7.2Mt total market • Estimated 2.6Mt total market continues to show resilience in sales for 2023 sales for 2023 an economy burdened with a deep energy crisis and power • DCP sold 2.0Mt in 2023, up by • DCP Zambia
Slide 15: Debt and Liquidity
Debt and Liquidity Robust Capital Structure Investor Presentation
Slide 16: Track record of accessing Debt Capital Market
Track record of accessing Debt Capital Market Bond programme Commercial paper programme 350 350 300 300 250 Undrawn balance of 250 ₦113B on programme 300 166 Undrawn balance of 200 300 ₦134B on programme 200 187 150 150 100 100 134 50 50 113 0 0 Bond programme Draw down Undrawn balance Commercial pa
Slide 17: Robust debt profile
Robust debt profile Sustained minimum leverage ratio to support liquidity Facility Pricings Draw down Tenor Ratios Bond - April 2020* 12.5% ₦100B 2025 Current ratio 0.9x Bond – May 2021 (A,B&C)* 11.25%-13.5% ₦50B 2024-2028 Debt/capital 35.9% Bond – April 2022 (A,B&C)* 11.85%-13.0% ₦116B 2027-2032 Ne
Slide 18: Clear and consistent capital Allocation
Clear and consistent capital Allocation We prioritise ordinary dividends and growth investment in our distribution of capital before strategically allocating discretionary capital. 2023 capital allocation 5% Organic growth Ordinary dividend Share buyback 20% 40% 12% Over the last decade, we have exp
Slide 19: Strategy (Exports)
Strategy (Exports) Investor Presentation
Slide 20: Cementing Africa's Economic Self-Sufficiency
Cementing Africa's Economic Self-Sufficiency We make the regional and continental free trade agreements a reality Our vision is for Africa to be cement and clinker self-sufficient. We fulfilled this goal in our home country, Nigeria, which has gone from being one of the largest importers of cement,
Slide 21: Cementing Africa's Economic Self-Sufficiency
Cementing Africa's Economic Self-Sufficiency We make the regional and continental free trade agreements a reality Our vision is for Africa to be cement and clinker self-sufficient. We fulfilled this goal in our home country, Nigeria, which has gone from being one of the largest importers of cement,
Slide 22: Benefits of Export Strategy
Benefits of Export Strategy HIGHER CAPACITY UTILISATION IN OUR OPERATIONS: Increased production due 01 to exports will increase capacity utilisation in our operations and in turn reduce fixed cost per tonne. Additional earnings for the Group. CONTINENTAL AND REGIONAL BENEFITS - FREE TRADE AREA BENEF
Slide 23: Focus on West and Central Africa Expansion Strategy
Focus on West and Central Africa Expansion Strategy… …while optimising our Eastern African assets Existing operations Opportunities Ghana 0.45Mta – completed Senegal Cote d’Ivoire 1.5Mta – expected in 2024 Nigeria Sierra Leone Ethiopia Cameroon Congo Cote d’Ivoire 1.5Mta (phase 2) – 2024 Tanzania It
Slide 24: Sustainability
Sustainability Investor Presentation
Slide 25: Strong Board and Governance Framework
Strong Board and Governance Framework Board of Directors (includes five Independent Directors) Diverse Board • 27% Female Board Members (gender diversity) Aliko Dangote Devakumar Edwin Arvind Pathak Emmanuel Ikazoboh * • 6 Nationalities Olakunle Alake Philip Mathew Cherie Blair* Viswanathan Shankar
Slide 26: Sustainability & Governance – The Dangote Way
Sustainability & Governance – The Dangote Way Our 7 Sustainability Pillars our embedded in our culture and guide our approach to building a sustainable business. We released our 2022 combined Annual Report and Sustainability Report with ESG data presented as per Global Reporting Initiative (GRI) ref
Slide 27: ESG is at the Heart of Our Operation (FY 2023 highlights)
ESG is at the Heart of Our Operation (FY 2023 highlights) Environmental Social Governance • Reviewed and implemented new governance • Alternative Fuel Thermal Substitution Rate (TSR) at 9.7% • ₦2,356 million spent on social intervention activities policies in line with best practices in 2023 versus
Slide 28: Social Performance
Social Performance Customer service week Sustainability week Diversity and Integration Theme: “Sustainable Production and Consumption – The Dangote Way” • Dangote Cement’ crèche ₦2,356mn spent on CSR in 2023, up by 24.2% continues to support workplace childcare. • To promote gender diversity, Dangot
Slide 29: Outstanding Financial Performance
Outstanding Financial Performance Group Revenue (N’B) Group EBITDA (N’B) 2023 Group revenue up 36.4% at 2400 2,208 1000 886 ₦2,208.1B 2000 900 800 1600 700 600 1200 500 400 800 2023 Group EBITDA up 300 400 241 200 134.0 25.1% at 100 ₦886.1B 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 30: For further information contact
For further information contact: Temilade Aduroja Head of Investor Relations Dangote Cement Plc ir@dangote.com InvestorRelationsDangoteCement@dangote.com @dangotecement www.dangotecement.com