Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — Q1 2013 Earnings Presentation
11 slides from Dangote Cement's earnings presentation, May 2, 2013
Slide 1: Unaudited Results for the Three months to 31 March 2013
Unaudited Results for the Three months to 31 March 2013 2 May 2013
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: Q1 2013 highlights
Q1 2013 highlights Operational – Market rose nearly 16% in first quarter – Sales volume up 38% to 3.3mt (Nigeria) – Obajana volumes up 68%, Ibese up 82% Dangote Cement sales Q1 2013 vs Q1 2012 (kt) – Gas supply improved, positive for margins 3,500 Gboko 3,000 Financial Ibese 2,500 – Consolidated rev
Slide 4: Q1 2013 market
Q1 2013 market • Market demand rises by 15.7% – Estimated 5.4 million tonnes Total Nigerian Cement sales 2004-2012 (mt) • Gas supply improved on Q4 2012 Manufactured Imported 20 18 1.9 • But gas problems still dampening margins 16 10.2% CAGR 5.2 14 – 84% at Obajana, as regional difficulties persist
Slide 5: Total Nigerian market volume
Total Nigerian market volume FY 2013 FY 2012 FY 2011 FY 2010 2,000 Strong start in 2013 1,900 1,800 1,700 2012 000 tonnes Flooding 1,600 1,500 1,400 1,300 1,200 1,100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Dangote Cement estimates 5
Slide 6: Operational performance
Operational performance • Obajana – Nearly 2.1mt sold, up 68% – Stockpiles cleared – 84% gas ratio Quarterly cement sales by plant 2012-2013 (kt) Obajana Ibese Gboko • Ibese 3,500 – 1.0mt sold, up nearly 82% 3,000 – Stockpiles cleared 2,500 – Less affected by gas problems; 99% average – Export logis
Slide 7: Strong Q1 growth
Strong Q1 growth Consolidated Group accounts Q1 Q1 Three months to 31 March (₦bn) % change Comments 2012 2013 Revenue 68.4 95.4 39.5% Includes Ghana and Sephaku Cost of sales (28.3) (29.4) 3.8% Higher gas usage this quarter keeps COGS down Gross profit 40.1 66.0 64.7% Illustrates gearing effect of h
Slide 8: Balance sheet
Balance sheet Consolidated Group accounts FY Q1 Three months to 31 March (₦bn) Comments 2012 2013 Non-current assets 549.7 577.1 Current assets 123.9 154.5 Total assets 673.7 731.6 Equity 420.0 473.1 Non-current liabilities 117.6 114.9 Current liabilities 136.0 143.6 Total equity & liabilities 673.7
Slide 9: Summary
Summary • Market demand remains strong • Good performance at main plants – Expect to increase share of volumes in 2013 • Gas supply improved, but remaining cautious, forecasting based on 80% • Steady progress in Africa with projects coming onstream from 2013/14 • Strong balance sheet, ample headroom
Slide 10: Investor relations
Investor relations Equity research is provided by the following analysts: Broker Analyst Location ARM Research Oyinda Olanrewaju Lagos Chapel Hill Denham Eniola Taiwo Lagos CSL FCMB Guy Czartoryski London/Lagos Exotix Andy Gboka London FBN Capital Tunde Abidoye Lagos Imara Securities Belvas Otieno H
Slide 11: Appendix
Appendix • Total production capacity could be about 55 million tonnes by the end Growth in cement consumption of 2015, based on currently visible Capacity at 100% 8% 10% 12% 14% projects, but actual production will 80 depend on speed of ramp-up in 14/15/16 70 60 Export potential • Even assuming just