Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — FY2020 Earnings Presentation
30 slides from Dangote Cement's earnings presentation, Mar 23, 2021
Slide 1: FY 2020 results
FY 2020 results AUDITED RESULTS FOR THE FULL YEAR ENDED 31ST DECEMBER 2020 23rd MARCH 2021 @dangotecement www.dangotecement.com
Slide 2: 2020: A Record Year Across Board
2020: A Record Year Across Board SDG FINANCIAL OPERATIONAL SUSTAINABILITY Alignment 20% female Board representation from 12.5% Record high PAT up 37.7% Record Group volume up in 2019 At ₦276.1B 8.6% at 25.7Mt Diverse Board with 6 different nationalities 471 millionaires produced from the Record high
Slide 3: 2020 at a glance
2020 at a glance February March April June June Maiden Bond Maiden Clinker New CEO COVID-19 Impact Virtual AGM Issuance Shipment Michel Puchercos joined Lockdowns and restrictions in most Largest corporate bond Commissioning of Apapa terminal. Released our first Dangote Cement as of our operations f
Slide 4: Macro-economic environment
Macro-economic environment • The Sub-Saharan African region was hit by the twin shock of the COVID- 19 pandemic and commodity market decline in 2020 • The IMF estimates that SSAs GDP contracted by 2.6% in 2020 • South Africa and Zambia were hit the hardest; growth is estimated to have declined by 7.
Slide 5: COVID-19 Interventions
COVID-19 Interventions The health and safety of our employees, customers and communities is a core value Protecting our communities (CACOVID) Protecting our people and customers • ₦30bn raised so far by CACOVID, an intervention initiative set up by Alhaji Aliko Dangote; • ₦2.5bn contributed by Aliko
Slide 6: Impact of COVID-19
Impact of COVID-19 Restrictions across our operations MARCH APRIL MAY JUNE Nigeria • We instituted a Business Continuity Framework, and an Emergency Preparedness and Response Plan to ensure that Tanzania our operations and supply chains were not hindered • In a limited number of markets, such as Sou
Slide 7: Financial and Operational Overview
Financial and Operational Overview Investor Presentation Investor Presentation
Slide 8: FY 2020 – Resilient performance
FY 2020 – Resilient performance Strong performance sustained by robust demand and cost control measures Financial Full year ended 31st December 2020 2019 Change • Group revenue up 16.0%, supported by strong Sales volumes* ‘000t ‘000t % volumes Nigeria 15,936 14,119 12.9% • Group EBITDA up 20.9%; wit
Slide 9: Group Financial Overview
Group Financial Overview Income Statement 2020 2019 Full year ended 31st December ₦m ₦m % change Revenue 1,034,196 891,671 16.0% Cost of sales (437,970) (379,989) 15.3% Gross profit 596,226 511,682 16.5% Gross margin 57.7% 57.4% 0.3pp EBITDA 478,122 395,427 20.9% EBITDA margin 46.2% 44.3% 1.9pp EBIT
Slide 10: Group Financial Overview (cont'd): Movement in Net Debt
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 483,531 - 483,531 working capital changes Change in working capital 51,791 - 51,791 Income tax paid (20,997) - (20,997) Additions to fix
Slide 11: Group Financial Overview (cont'd): Balance Sheet
Group Financial Overview (cont’d) Balance Sheet As at 31/12/20 As at 31/12/19 ₦m ₦m Property, plant and equipment 1,390,687 1,206,749 Other non-current assets 77,072 124,203 Intangible Assets 4,554 3,663 Current Assets 404,303 282,833 Cash and Cash Equivalents 145,835 123,903 Total Assets 2,022,451
Slide 12: Nigeria – robust cement demand
Nigeria – robust cement demand 346 • Record high sales volumes in Nigeria at 15.9Mt, up 12.9% 476 • Domestic volumes up 14.3% • Strong performance sustained by robust volume growth coupled with cost saving measures 13,643 15,590 • Strong EBITDA of ₦421.4B, up 16.7% despite impact of COVID-19 in 2020
Slide 13: Nigeria – Strong Recovery in Domestic Market
Nigeria – Strong Recovery in Domestic Market Dangote Cement has recovered from the Q2 impact of Strong growth – V curve recovery COVID-19: 4,500 Catch-up effect from suspended projects in Q2 4,290 Low interest rate environment driving strong demand 4,018 4,000 3,912 for real estate assets and s
Slide 14: Pan-Africa – Record High EBITDA Margin
Pan-Africa – Record High EBITDA Margin • Volumes up at 4.4% to 10.0Mt despite lockdown and restrictions in 2020 EBITDA trend • Revenues up 12.7% to ₦318.7B, supported by higher 24.0% 22.4% realised prices and volume growth 20.0% • Record high EBITDA of ₦71.3B, up 49.0% Record high 17.3% 16.9% EBITDA
Slide 15: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 3.5Mt total • Estimated under 900Kt total • Estimated 7.6Mt total market sales for FY 2020 market sales for FY 2020 market sales for FY 2020 • Increase in construction • DCP Congo sold 388Kt of • DCP sales of 2.1Mt for FY projects owing to African
Slide 16: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated 6.7Mt total • Estimated 7.0Mt total • Increased infrastructure market sales for FY 2020 market sales for FY 2020 spending • DCP Ghana sold 422Kt of • DCP sales of 1.59Mt for FY • Estimated 870Kt total cement, a 15.8% decrease 2020, up 7.5% compa
Slide 17: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • Total national lockdown • Estimated 5.6Mt total • Estimated 2.7Mt total imposed from 27 March market sales for FY 2020 market sales for FY 2020 2020 to 3 May 2020 to curb the spread of COVID-19 • DCP sales of 1.1Mt for FY • DCP sales of 773Kt for FY 202
Slide 18: Debt and Liquidity
Debt and Liquidity Robust Capital Structure Investor Presentation
Slide 19: Strong track record of accessing the local debt market
Strong track record of accessing the local debt market Bond Programme Commercial Paper Programme In April, we successfully completed the issuance of ₦100B Successfully issued ₦100B series 15 and 16 in May series 1 fixed rate 5-year bond at a rate of 12.5% Successfully issued 50B series 17 and 18 in
Slide 20: Robust Capital Structure
Robust Capital Structure Strong balance sheet with available liquidity Diverse Capital Structure, ₦B Debt Maturity Profile, ₦B 500 350 56 2 38 159 300 400 111 250 116 300 200 98 Long term 150 200 Short term 100 324 173 215 100 50 100 42 0 0 2021 2022 2023 2024 2025 Bank loan Bond* Commercial Related
Slide 21: Strong Credit Ratings
Strong Credit Ratings LENDING DIVERSIFICATION RATINGS • On 23 January 2020, Global Credit Ratings affirmed the long term Facility Pricings Draw down Tenor and short-term national scale issuer ratings of AA+(NG) and Bond 12.5% ₦100B 2025 A1+(NG) respectively, assigned to DCP, with the outlook accorde
Slide 22: Successful Share buyback Programme
Successful Share buyback Programme At the end of December, DCP repurchased 0.24% of its shares at an average price of ₦243 per share. TRADES EXECUTED Daily Trade Date Day 1 Day 2 Total • DCP completed tranche 1 of its buyback Shares repurchased 32.00 8.20 40.20 programme on the 31st of December 2020
Slide 23: Sustainability
Sustainability Investor Presentation
Slide 24: Sustainability & Governance
Sustainability & Governance The Dangote Way Our 7 Sustainability Pillars support our unique approach to creating a world-class enterprise. We released our 2019 combined Annual Report and Sustainability Report certified by the Global Reporting Initiative (GRI) and Externally Assured. CULTURAL ECONOM
Slide 25: Institutional Pillar – Strong Governance Framework
Institutional Pillar – Strong Governance Framework Board of Directors (includes five Independent Directors) Diverse Board Aliko Dangote (1) Ernest Ebi * Gender diversification: 20% female Michel Puchercos Devakumar Edwin Board members Olakunle Alake Emmanuel Ikazoboh * Cherie Blair* Arvind Pathak 6
Slide 26: Environmental Pillar – Focus on Alternative Fuel Project
Environmental Pillar – Focus on Alternative Fuel Project Alternative Fuel Project Commenced our Alternative Fuel Project to replace coal with biomass utilised in kiln for cement production Waste type Agro wastes, Waste lubricants, Tire derived • Submission to Carbon Disclosure Project fuels, Saw dus
Slide 27: Social Pillar - COVID-19 Interventions
Social Pillar - COVID-19 Interventions Protecting our communities (CACOVID) Sustainability week • ₦30bn raised so far by CACOVID, an intervention initiative set up by Alhaji Aliko Dangote; Summary of Sustainability Week Impact: 33 schools and 1560 volunteers • ₦2.5bn contributed by Aliko Dangote F
Slide 28: Economic Pillar - National Consumer Promo
Economic Pillar - National Consumer Promo BAG OF GOODIES SEASON 2 National Consumer Promo has made 471 millionaires across all states in Nigeria in 2020 The promo is well received by consumers and driving stronger demand for Dangote Cement National Consumer Promo Press Launch in July PULL EFFECT Cro
Slide 29: Financial Pillar – Creating value for shareholders
Financial Pillar – Creating value for shareholders 1200.0 1000.0 800.0 ₦B 600.0 400.0 200.0 0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Revenues EBITDA Cash flow from operations Capex Dividend paid 18% 10-year CAGR 15% 10-year CAGR 26% 10-year CAGR REVENUE EBITDA DIVIDEND Dangote Cement |
Slide 30: For further information contact
For further information contact: Temi Aduroja Head of Investor Relations Dangote Cement Plc +44 207 399 3070 InvestorRelationsDangoteCement@dangote.com @dangotecement www.dangotecement.com