Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — 9M 2024 Earnings Presentation
30 slides from Dangote Cement's earnings presentation, Oct 30, 2024
Slide 1: 9M 2024 results
9M 2024 results UNAUDITED RESULTS FOR NINE MONTHS ENDED 30th SEPTEMBER 2024 30th October 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 5 • Sub-Saharan Africa (SSA) GDP growth is projected to remain flat at 3.6% in YTD currency depreciation to the dollar in 9M 2024 2024, largely due to sluggish growth from Nigeria. The region is still contending with challenges including escalating inflation, curren
Slide 4: Domestic macroeconomic environment
Domestic macroeconomic environment Real GDP Growth (%) Interest Rate (%) Movement in Oil Prices ($) 120 3.4% 3.2% 2.9% MPR 1-yr Tbills Interbank 3.1% 33 27.3% 2.7% 100 2.3% 74 1.9% 23 80 0.8% 13 60 3 Dec-22 Feb-23 Dec-23 Feb-24 Jan-23 Jun-23 Apr-23 Nov-23 Jan-24 Jun-24 Aug-23 Mar-23 Oct-23 Apr-24 Au
Slide 5: Domestic Regulatory Updates
Domestic Regulatory Updates • New capital requirements for banks: A new threshold of N500 billion for international authorisation, ₦200 billion for national authorization, and ₦50 billion for regional licenses, up from a threshold of ₦50 billion, ₦25 billion and ₦10 billion, respectively Q1 • CBN ex
Slide 6: Strong performance amidst headwinds
Strong performance amidst headwinds FINANCIAL OPERATIONAL SUSTAINABILITY SDG Alignment 28% female Board Group revenue up 69.1% Group volumes up 1.9% to representation to ₦2,560.6B 20.7Mt Diverse Board with 7 different nationalities Published 2023 combined Annual and Sustainability Group EBITDA up 37
Slide 7: 9M 2024: Impressive YTD performance
9M 2024: Impressive YTD performance Group EBITDA up 37.1% to ₦908.7B Nine months ended September 9M 2024 9M 2023 Change Financial • Group revenues up 69.1%, supported by strong volume growth from Sales volumes* ‘000t ‘000t % Nigeria, improved pricing and translation gain from pan-Africa. Nigeria vol
Slide 8: Group Financial Overview
Group Financial Overview Income Statement Nigeria export trend (Kt) 9M 2024 ₦m 9M 2023 ₦m % change 1000 Revenue 2,560,573 1,514,601 69.1% 900 Cost of sales (1,236,316) (642,743) 92.3% 800 227 Gross profit 1,324,257 871,858 51.9% 700 Gross margin 51.7% 57.6% (5.8pp) 600 500 EBITDA 908,690 662,762 37.
Slide 9: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Rewarding shareholding Balance Sheet As at 30/9/24 As at 31/12/23 Dividend paid (N’B) ₦m ₦m 600 Property, plant and equipment 3,322,556 2,383,528 503 500 Declared dividend of Other non-current assets 169,909 133,827 ₦30.00/share - up 50% 400 338 338 Intangible Asset
Slide 10: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Focused on strong cash generation • Prudent capital allocation on dividend, income 1800 tax and capex • Cash of ₦655.9B was generated from operations for 9M 2024 1600 • ₦175.6B was spent on capex to fund the construction of new plants in West African 1400 Prudent ca
Slide 11: Nigeria – Strong volumes despite adverse weather
Nigeria – Strong volumes despite adverse weather 9M 2024 average cement price across our operations, $/t • Strong volume growth of 9.5%, supported by increased promotional activities Weighted Average and improved route to market solution. 125 cement price of $78 • Nigeria revenues up 64.1% to ₦1,531
Slide 12: Pan-Africa – Strong performance across key line items
Pan-Africa – Strong performance across key line items EBITDA ₦m • Volumes down 1.6% to 8.4Mt, due to adverse weather conditions, particularly in 256.0 247.1 Tanzania. • Pan-African volume accounts for 40.4% of Group volume, underscoring benefits from 206.0 our diversification strategy 170 • Revenues
Slide 13: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 3.2Mt total market • Estimated market sales of • Estimated 5.5Mt total market sales in 9M 2024 660Kt in 9M 2024 sales in 9M 2024 • DCP Cameroon sales volume • Clinker exports to Cameroon • DCP sales of 1.7Mt in 9M was up slightly by 0.8% to commenc
Slide 14: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated 4.0Mt total • Estimated total market sales • Estimated market sales of market sales in 9M 2024 of 7.0Mt in 9M 2024. 223.7Kt in 9M 2024 • DCP Ghana sold 375.6Kt of • Election uncertainties • Dangote Cement Sierra cement in 9M 2024, up stalled eco
Slide 15: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • Economic activities in South • Estimated 4.4Mt total market • Estimated 2.3Mt total market Africa were subdued due to pre sales for 9M 2024 sales for 9M 2024 and post election uncertainties, in addition power supply • DCP sold 1.3Mt in 9M 2024, • DCP Za
Slide 16: Debt and Liquidity
Debt and Liquidity Robust Capital Structure Investor Presentation
Slide 17: Track record of accessing Debt Capital Market
Track record of accessing Debt Capital Market Bond programme Commercial paper programme (CP) 350 300 250 Received SEC approval to renew ₦300B 300 96 Bond programme 200 Undrawn balance of ₦204B on programme 150 100 50 204 0 Commercial paper Issued & Headroom Issued & Tranches programme Outstanding Pr
Slide 18: Robust debt profile
Robust debt profile Sustained minimum leverage ratios to support liquidity Outstanding Facility Pricings amount Tenor Ratios 9M 2024 Bond - April 2020* 12.5% ₦100B 2025 Current ratio 0.7x Bond – May 2021 (A,B&C)* 11.25%-13.5% ₦44.4B 2025-2028 Debt/capital 42.3% Bond – April 2022 (A,B&C)* 11.85%-13.0
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: 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 2023 combined Annual Report and Sustainability Report with ESG data presented as per Global Reporting Initiative (GRI) ref
Slide 26: ESG is at the Heart of Our Operation (9M 2024 highlights)
ESG is at the Heart of Our Operation (9M 2024 highlights) Environmental Social Governance • Reviewed and implemented new governance • Alternative Fuel Thermal Substitution Rate (TSR) at 9.7% • N6,767 million spent on social intervention activities policies in line with best practices in 9M 2024 vers
Slide 27: Strong Board and Governance Framework
Strong Board and Governance Framework Board of Directors (includes five Independent Directors) Diverse Board • 28% Female Board Members (gender diversity) Aliko Dangote Devakumar Edwin Arvind Pathak Emmanuel Ikazoboh * • 7 Nationalities Olakunle Alake Viswanathan Shankar Cherie Blair, CBE, KC* Dorot
Slide 28: Social Performance
Social Performance Sustainability Week Theme: “Business Optimisation for Net Zero –The Dangote Journey” ₦6.8B spent on CSR in 9M 2024, up by 397.2% DCP charity outreach to Ajomo-Ikosi DCP staff embarking on a walk for road community in Kosofe LGA safety sensitisation Investor Presentation
Slide 29: Outstanding Financial Performance
Outstanding Financial Performance 9M 2024 Group revenue up Group Revenue (N’B) Group EBITDA (N’B) 2023 Group revenue up 36.4% at 2400 2,208 69.1% at 1000 886 ₦2,208.1B ₦2,560.6B 2000 900 800 1600 700 600 1200 500 400 800 9M 2024 2023 Group Group EBITDA EBITDA upup 300 400 241 200 134.0 37.1% at 25.1
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