Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — H1 2012 Earnings Presentation
9 slides from Dangote Cement's earnings presentation, Jun 30, 2012
Slide 1: An emerging cement major building shareholder value and prosperity in Africa
An emerging cement major building shareholder value and prosperity in Africa Unaudited results for the six months to 30 June 2012
Slide 2: Disclaimer
Disclaimer This document is not an offer of securities for sale in the United States. Any securities discussed herein have not been and will not be registered under the US Securities Act of 1933, as amended (the “US Securities Act”) and may not be offered or sold in the United States absent registra
Slide 3: H1 2012 highlights
H1 2012 highlights Operational – Cement sales up 26% to 5.2 million tonnes – 5.1 million tonnes locally produced – Sale of locally produced cement doubles in Q2 v Q2 2011 – Gas problems continue in Q2 but signs of improvement in Q3 – Key hires made: Regional management, Logistics, Human Asset Manage
Slide 4: Revenue up on new capacity
Revenue up on new capacity Six months to 30 June 2012 H1 2011 H1 2012 Change Comments Sales volume (kt) 4,156 5,242 26.1% Impact of new capacity ramping up Local cement despatched 3,174 5,099 60.6% Shipments of own-produced cement rose by 100% Q2 2012 vs Q2 2011 Nigeria Nigeria (₦bn) (₦bn) Revenue 1
Slide 5: Strong balance sheet
Strong balance sheet Six months to 30 June 2012 FY 2011 H1 2012 Comments (₦bn) (₦bn) Non-current assets 465.6 515.6 Current assets 76.1 89.6 Increase mostly from advances to contractors Total assets 541.7 605.3 Total equity 298.8 350.4 Long term debts 125.9 139.3 Non-current liabilities 129.4 143.7
Slide 6: A roadmap for expansion
A roadmap for expansion FY 2011 FY 2012 FY 2015 8mt capacity 21.75mt capacity 51.0mt capacity • Two plants in Nigeria, 8mt capacity • Nigerian capacity increased to 20.25mt • Nigerian capacity 32mt • Obajana 5mt • Obajana 10.25mt • Obajana 13mt • Gboko 3mt • Ibese 6mt • Ibese 12mt • Gboko 4mt • Gbok
Slide 7: Expanding for African growth
Expanding for African growth • Africa’s economic growth is a major opportunity – Rising demand for cement, but structural deficits in production • $2.5bn investment committed to Africa – Eight plants, five import terminals – Fund with Nigeria cash flow and local debt • Targeting attractive markets –
Slide 8: Update on projects
Update on projects • Senegal awaiting power components – Some import delays to key equipment for power plant – Cement factory is complete, cold testing done – Small contribution this year Actual and estimated capex (₦bn) • Gabon may be a grinding plant 250 – Assessing benefits of building clinker gr
Slide 9: Summary & outlook
Summary & outlook • A unique platform to capture Africa’s rapid expansion – Strategy to become the continent’s leader in cement production – Benefiting from attractive investment incentives – Strong cement demand and supportive pricing • Leader in SSA’s largest cement market – Expanding highly profi