Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — H1 2019 Earnings Presentation
18 slides from Dangote Cement's earnings presentation, Jul 30, 2019
Slide 1: Unaudited Results for the Six Months Ended 30 June 2019
Wa RASA eS SDAA C' UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30'H JUNE 2019 30" JULY 2019 @dangotecement y vwwnn-dangotecementcom |[__] DANGOTE == CEMENT
Slide 2: Progress in 2019
Progress in 2019 SR DANGOTE CEMENT Q1 2019 Q2 2019 6M 2019 6M 2018 Change Sales volumes ‘000 tonnes ‘OOO tonnes | ‘OOO tonnes } ‘OOO tonnes % 3,991 3,604 7,595 7,810 (2.8%) 2,347 2,340 4,687 4,565 2.7% - - - (13) Revenues am am am im % Nigeria 169,885 158,402 328,287 344,104 (4.6%) Pan-Africa 70,272
Slide 3: H1 2019 Performance
H1 2019 Performance FINANCIAL * Group revenue down 3.0% — Election delays — Continued discounting in response to low growth market — Heavy rains in Nigeria in Q2 * Group EBITDA down 11.4% — 46.6% margin — Lower volumes, higher input costs * Earnings per share up 6.2% to $7.01 OPERATIONAL * Group vol
Slide 4: Group Financial Overview
Group Financial Overview Six months to 2019 2018 30th June Nm Nm | Change Revenue 467,730 482,439 (3.0%) Cost of sales (193,172) (197,595) (2.2%) Gross profit 274,558 284,844 (3.6%) Gross margin 58.7% 59.0% (0.3pp) EBITDA 217,944 246,007 (11.4%) EBITDA margin 46.6% 51.0% (4.4pp) EBIT 170,496 200,517
Slide 5: 6M EBITDA Development
6M EBITDA Development ore Mi Increase Ml Decrease Mi Total 250 26.3 BESS <9 quasi se. ere) 200 150 100 50 Nigeria Profitable Pan-African Loss-making Pan-African Central costs Total * Nigeria's continued discounting, lower volumes and higher input/transport costs weighed on EBITDA Investor Presentati
Slide 6: Group Financial Overview
Group Financial Overview «..::: SR DANGOTE CEMENT Cash Debt Net debt 8m Am Rm As at 1" January 2019 166,896 (335,301) (168,405) = “| tives Changes in working capital (4,943) - (4,943) Income tax paid (1,782) - (1,782) Additions to fixed assets (66,712) - (66,712) Other investing activities (39) - (3
Slide 7: Group Financial Overview
Group Financial Overview «..::: As at 30/6/19 As at 31/12/18 mM sm Property, plant and equipment 1,185,340 1,171,864 Other non-current assets 90,732 87,792 Intangible Assets 5,757 5,969 Current Assets 281,547 261,942 Cash and Cash Equivalents 93,055 166,896 Total Assets 1,656,431 1,694,463 Non-curre
Slide 8: • 5,000 • 4,500 4,000 3,500 • ₦ 3,000 • 2,500 2,000 1,500 1,000
• 5,000 • 4,500 4,000 3,500 • ₦ 3,000 • 2,500 2,000 1,500 1,000 500 ₦ 0 ₦ Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 2019
Slide 9: Revenue per tonne
₦ 50,000 5,000 ₦ 45,000 ₦ 40,000 ₦ 43,816 ₦ 44,311 4,500 ₦ 45,070 ₦ 44,960 ₦ 44,023 ₦ 43,187 ₦ 42,567 ₦ 42,947 ₦ 35,000 ₦ 40,412 ₦ 43,951 ₦ 30,000 4,000 ₦ 25,000 ₦ 26,622 ₦ 28,972 ₦ 20,000 ₦ 29,630 ₦26,952 ₦ 25,903 3,500 ₦ 29,176 ₦ 29,059 ₦ 29,039 ₦ 26,975 ₦ 15,000 ₦ 26,175 ₦ 10,000 3,000 ₦ 5,000 ₦0
Slide 10: Nigeria Price Development
Nigeria Price Development Aare CEMENT Ex-factory price after discounts and other rebates 42,200 = - ‘ - : $200 re a / $180 ¥ 2,000 \— Ni : $160 § 1,800 : : ex : $140 “ 4 eee mN : $120 1,400 ee : LZ ; DieeE $100 § 1,200 $80 § 1,000 : $60 OD DD A A DS DO O_O OO © SO OO ON NA Mw WO PPM MS MO O_O OO © ©
Slide 11: Nigeria Cash Cost Analysis
Nigeria Cash Cost Analysis xed Kiln Fuel a Power Plant Production Wages & Salaries Maintenance Manpower DANGOTE CEMENT Maintenance Mine Costs i Cash cost was approximately $32.1/tonne in H1 2019 (Excluding central costs) 65% of cash costs are US Dollar based, though less than 20% paid in Dollars Inv
Slide 12: Pan-Africa Revenues Up
Pan-Africa Revenues Up pase CEMENT * Sales volumes up 2.7% to nearly 4.7Mt Cement sales (‘000 eS) * Revenues up 1.0% to 8140.1B * EBITDA down 7.5% to §23.9B 5000 * Good H1 performances 4,500 — Tanzania volumes up 172% 4,000 — Sierra Leone volumes up 89% Boa — Ethiopia steady despite electricity shor
Slide 13: Country Updates: Cameroon, Congo, Ethiopia
Country Updates isere CEMENT Estimated 1.5Mt total market in 123Kt sold in H1, up 40% on Sales affected by electricity H1 2019 the 88Kt sold last year rationing (50% of normal Housing and infrastructure 30% market share achieved in supply) driving sales first half Volumes down slightly to 945Kt Volu
Slide 14: Country Updates: Ghana, Senegal, Sierra Leone
Country Updates Volumes down to 251Kt owing to lack of stock 10% market share Increased government infrastructure spending ahead of 2020 elections Market drivers include Tema- Accra highway, the airport in Kumasi, the extension of the BUIPE dam and the port in Takoradi Sales output is more than 100%
Slide 15: South Africa Tanzania Zambia
South Africa Tanzania Zambia
Slide 16: CDP Disclosure
CDP Disclosure * First submission to Carbon Disclosure Project (CDP) filed at end of July 2019, covering 2018 emissions data * Consolidated emission monitoring and internal reporting methodology based on GCCA guidelines adopted in November 2018 First Climate Change Risk Assessment workshop carried o
Slide 17: Series Face value Tenor
Series Face value Tenor Discount rate Issue date Maturity ₦ ₦ ₦ ₦ ₦ ₦
Slide 18: Investor relations
a ea Investor relations For further information contact: Carl Franklin Head of Investor Relations Dangote Cement Plc +44 207 399 3070 carl.franklin@dangote.com vdangotecementcom |[__] LISTED DANGOTE = CEMENT