Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — Q1 2020 Earnings Presentation
16 slides from Dangote Cement's earnings presentation, May 27, 2020
Slide 1: Q1 2020 results
Q1 2020 results UNAUDITED RESULTS FOR THE THREE MONTHS ENDED 31ST MARCH 2020 27th MAY 2020 @dangotecement www.dangotecement.com
Slide 2: Q1 2020 Performance
Q1 2020 Performance Financial • Group revenue up 3.8%, supported by higher Three months ended 31st March 2020 2019 Change volumes and realised prices in Nigeria Cement volumes ‘000t ‘000t % • Group EBITDA up 2.2%, due to strong Nigeria 4,018 3,991 0.7% operating performance in Pan-Africa Pan-Africa
Slide 3: Group Financial Overview
Group Financial Overview Income Statement 2020 2019 Three months to 31st March ₦m ₦m % change Revenue 249,182 240,157 3.8% Cost of sales (104,325) (99,478) 4.9% Gross profit 144,857 140,679 3.0% Gross margin 58.1% 58.6% (0.5pp) EBITDA 114,223 111,761 2.2% EBITDA margin 45.8% 46.5% (0.7pp) EBIT 91,77
Slide 4: Q1 2020 EBITDA Development
Q1 2020 EBITDA Development Profitability (₦bn) 140.0 15.9 120.0 114.2 103.4 1.3 3.8 100.0 80.0 Pan-African operations have delivered their highest ever 60.0 quarterly EBITDA contributions at NGN 14.6 B 40.0 20.0 0.0 Nigeria Profitable Pan-African Non profitable Pan-Africa Central costs Total Dangote
Slide 5: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Movement in Net Debt Cash ₦m Debt ₦m Net debt ₦m As at 31st December 2019 123,903 (351,434) (227,531) Cash from operations before 112,518 - 112,518 working capital changes Change in working capital 12,357 - 12,357 Income tax paid (131) - (131) Additions to fixed ass
Slide 6: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Balance Sheet As at 31/3/20 As at 31/12/19 ₦m ₦m Property, plant and equipment 1,239,382 1,206, 749 Other non-current assets 119,258 124,203 Intangible Assets 4,554 3,663 Current Assets 332,577 282,833 Cash and Cash Equivalents 101,843 123,903 Total Assets 1,797,614
Slide 7: Robust Capital Structure (includes bond issuance)
Robust Capital Structure (includes bond issuance) In April, DCP successfully completed the issuance of ₦100B Series 1 5-year Bond. The transaction was 1.5 times oversubscribed and represents DCPs debut bond issuance. Diverse Capital Structure, ₦B Debt Maturity Profile, ₦B 400 200 49.2 4.7 38 163 46.
Slide 8: Robust Capital Structure (includes bond issuance)
Robust Capital Structure (includes bond issuance) LENDING DIVERSIFICATION RATINGS Facility Pricings Draw down Tenor • On 23 January 2020, Global Credit Ratings affirmed the long term and short-term national scale issuer ratings of AA+(NG) ₦300B Bond Issuance and A1+(NG) respectively, assigned to DCP
Slide 9: Nigeria – Highest Quarterly Revenue
Nigeria – Highest Quarterly Revenue 4,018 179 • Strongest quarter over the last four years in terms of 3,991 volumes 174 3,969 • Q1 volumes up 0.7% YoY to 4.0Mt 170 • Excluding Q1 2019 exports, volumes were up 5% YoY • Sales impact due to COVID-19 lockdown commenced in 3,770 key states on 31 March 1
Slide 10: Pan-Africa – Record High EBITDA Margin
Pan-Africa – Record High EBITDA Margin • Sales volumes down 1.4% to 2.3Mt; revenues relatively flat at ₦69.8B EBITDA margin trend 22% 21% • Lockdown in South Africa affected volumes at the end 20% of March Record high 17% EBITDA margin 18% • Record high EBITDA of ₦14.6B, supported by strong 17% perf
Slide 11: Country Updates
Country Updates CAMEROON CONGO ETHIOPIA • Estimated 186Kt total • Estimated 820Kt total market sales for Q1 2020 • Estimated 2.0Mt total market sales for Q1 2020 market sales for Q1 2020 • DCP Congo sold 74Kt of • DCP sales of 312Kt for Q1 cement, a 25% increase • DCP sales of 557Kt for Q1 2020, up
Slide 12: Country Updates
Country Updates GHANA SENEGAL SIERRA LEONE • Estimated 1.7Kt total market sales for Q1 2020 • Estimated 1.9Mt total • Estimated 182Kt total market sales for Q1 2020 market sales for Q1 2020 • DCP Ghana sold 124Kt of cement, a 6% increase • DCP sales of 407Kt for Q1 • DCP sales of 67Kt for Q1 compare
Slide 13: Country Updates
Country Updates SOUTH AFRICA TANZANIA ZAMBIA • Negative growth in cement • Estimated 1.4Mt total • DCP sales of 134Kt for Q1 market due to a negative market sales for Q1 2020 2020, down 39% compared growth in the South African • DCP sales (including to Q1 2019 economy. clinker) of 244Kt for Q1 • 27%
Slide 14: Sustainability & Governance
Sustainability & Governance The Dangote Way Our 7 Sustainability Pillars support our unique approach to creating a world-class enterprise. 2019 Sustainability Report would be certified by the Global Reporting Initiative (GRI) and Externally Assured. ESG impact CULTURAL Trained all DCP Sustainability
Slide 15: Outlook
Outlook COVID-19 • We have proactively deployed recommended measures to Obajana integrated plant in Kogi, Nigeria protect the health and well-being of our employees, customers, suppliers and communities. We are monitoring key dimensions of our operations in order to mitigate negative financial impac
Slide 16: Investor Relations Contacts
Investor Relations Contacts For further information contact: Temi Aduroja Head, Investor Relations Dangote Cement Plc +44 207 399 3070 InvestorRelationsDangoteCement@dangote.com @dangotecement www.dangotecement.com