Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — 9M 2021 Earnings Presentation
28 slides from Dangote Cement's earnings presentation, Nov 1, 2021
Slide 1: 9M 2021 results
9M 2021 results UNAUDITED RESULTS FOR THE NINE MONTHS ENDED 30TH SEPTEMBER 2021 1st November 2021 @dangotecement www.dangotecement.com
Slide 2: 9M 2021: A Solid Nine Months
9M 2021: A Solid Nine Months SDG FINANCIAL OPERATIONAL SUSTAINABILITY Alignment 21% female Board Revenue up 34.2% Group volumes up 15.4% representation at ₦1,022.2B at 22.2Mt Diverse Board with 6 different nationalities Accorded the long-term Group EBITDA up 45.0% Nigeria volumes up 18.7% issuer rat
Slide 3: The year so far
The year so far….. 200 160 120 80 March May May May June AAA rating accorded Virtual AGM Bond Issuance Resumed Clinker Share buy-back renewal by GCR Shipments Released our 2020 combined Annual Successful issuance of Series Buy-back programme GCR upgraded DCPs 1 Fixed Rate Bonds under new and Sustain
Slide 4: Macro-economic environment
Macro-economic environment • Sub-Saharan Africa (SSA) is experiencing the welcomed economic recovery on the back of the COVID-19 pandemic and commodity market decline in 2020. • According to the IMF, SSA is expected to growth by 3.7% in 2021 • The growth largely results from a sharp improvement in g
Slide 5: Financial and Operational Overview
Financial and Operational Overview Investor Presentation
Slide 6: 9M 2021 – Resilient Results
9M 2021 – Resilient Results 9M 2021 EBITDA and PAT have exceeded 2020 full year results Financial Nine months ended 30th September 2021 2020 Change • Group revenues up 34.2%, supported by strong Sales volumes* ‘000t ‘000t % volume growth Nigeria 14,144 11,915 18.7% • Group EBITDA up 45.0%; with EBIT
Slide 7: Group Financial Overview
Group Financial Overview Income Statement 9M 2021 ₦m 9M 2020 ₦m % change Revenue 1,022,186 761,444 34.2% Cost of sales (403,388) (317,540) 27.0% Gross profit 618,798 443,904 39.4% Gross margin 60.5% 58.3% 2.2Pp EBITDA 514,791 355,020 45.0% EBITDA margin 50.4% 46.6% 3.7Pp EBIT 440,324 287,928 52.9% E
Slide 8: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Movement in debt Cash ₦m Debt ₦m Net debt ₦m As at 31st December 2020 145,835 (483,110) (337,275) Cash from operations before 512,858 - 512,858 working capital changes Change in working capital (40,042) - (40,042) Income tax paid (29,728) - (29,728) Additions to fix
Slide 9: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Balance Sheet As at 30/9/21 As at 31/12/20 ₦m ₦m Property, plant and equipment 1,465,909 1,390,687 Other non-current assets 42,911 77,072 Intangible Assets 4,936 4,554 Current Assets 557,379 404,303 Cash and Cash Equivalents 179,101 145,835 Total Assets 2,250,236 2,
Slide 10: Nigeria – 9M 2021 EBITDA has surpassed FY 2020
Nigeria – 9M 2021 EBITDA has surpassed FY 2020 459 730 • Strong 9M sales volumes in Nigeria of 14.1Mt, with 720 421 growth at 18.7% 536 • Robust growth trend continues with strong demand 316 from housing and infrastructure • Solid performance with record high 9M EBITDA of ₦459.2B, up 45.3% • 9M 2021
Slide 11: Pan-Africa – strong volume growth
Pan-Africa – strong volume growth • Volumes up 9.4% to 8.2Mt as demand remains strong EBITDA trend across most territories of operations 24.0% 22.4% 22.5% • Revenues up 28.1 % to ₦297.9, supported by higher realised prices and volume growth 20.0% • Strong EBITDA of ₦66.9B, up 28.6%, EBITDA margin of
Slide 12: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 3Mt total market • Estimated market sales of • Estimated 5.5Mt total sales for 9M 2021 667Kt for 9M 2021 market sales for 9M 2021 • Increase in consumption • DCP Congo sold 357Kt of • DCP sales of 1.7Mt for 9M owing to individual cement, a 33% incr
Slide 13: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated over 5Mt total • Estimated 6.3Mt total • Estimated market sales of market sales for 9M 2021 market sales for 9M 2021 808Kt for 9M 2021 • DCP Ghana sold 331Kt of • DCP sales of 1.2Mt for 9M • DCP sales of 209Kt for 9M cement, an 8% increase 2021.
Slide 14: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • High residential housing • Estimated 4.5Mt total • Estimated 1.9Mt total demand since H2 2020 market sales for 9M 2021 market sales for 9M 2021 • Sales at DCP South Africa • DCP sales of 1.3Mt for 9M • DCP sales of 560Kt for 9M increased by 6% year on 2
Slide 15: Debt and Liquidity
Debt and Liquidity Robust Capital Structure Investor Presentation
Slide 16: Track record of accessing Debt Capital Market
Track record of accessing Debt Capital Market Bond Programme Commercial Paper Programme In April 2020, DCP successfully completed the issuance of its maiden ₦100B series 1 fixed rate 5-year bond. Issued an aggregate NGN450 billion in Commercial Papers since 2018. In May 2021, DCP successfully raised
Slide 17: Robust Capital Structure
Robust Capital Structure Strong balance sheet with available liquidity Diverse Capital Structure, ₦B Debt Maturity Profile, ₦B 600 400 25 350 500 25 189 300 148 400 250 200 300 318 Long term 150 Short term 100 200 359 343 36 50 100 41 4 10 100 0 Next 12 2022 2023 2024 2025 2026 2028 months 0 Bank lo
Slide 18: Accorded the Highest Issuer Rating by GCR
Accorded the Highest Issuer Rating by GCR LENDING DIVERSIFICATION RATINGS • On 30 March 2021, Global Credit Ratings Facility Pricings Draw down Tenor upgraded the long-term Issuer rating to AAA (NG) and affirmed the Bond 12.5% ₦100B 2025 short-term issuer rating of A1+(NG), with outlook as Stable
Slide 19: Sustainability
Sustainability Investor Presentation
Slide 20: 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 2020 combined Annual Report and Sustainability Report with ESG data presented as per Global Reporting Initiative (GRI) ref
Slide 21: Institutional Pillar – Strong Governance Framework
Institutional Pillar – Strong Governance Framework Diverse Board Board of Directors Gender diversification: 21% female Board (includes five Independent Directors) members Aliko Dangote (1) Ernest Ebi * 6 different nationalities Michel Puchercos Devakumar Edwin 5 Independent Non-Executive Directors O
Slide 22: Environmental Pillar – Focus on Alternative Fuel project
Environmental Pillar – Focus on Alternative Fuel project Circular Economy Model In 2020, we increased corporate focus and strategy by committing to the use of alternative fuel sources in our energy mix. We are exploring fully the feasibility of Thermal substitution rate is increasing the use of alte
Slide 23: Environmental Pillar – AF usage across our operations
Environmental Pillar – AF usage across our operations Current AF usage Carbon pellet, Coffee husk, Agro waste saw dust, peanuts, whole tires industrial coal Cut tires PKS Cashew nut shell, Rice husk scrap tires, paper waste, saw dust, waste plastics Small tires, Waste development for future use saw
Slide 24: Environmental Pillar – DCP has become a CDP supporter
Environmental Pillar – DCP has become a CDP supporter C • Submission to Carbon Disclosure Project (CDP) • Rated “C” by CDP on our carbon disclosure for 2020 • One of the highest ratings in Sub-Saharan Africa and the only Nigeria company rated by CDP • In 2021 DCP became a CDP supporter. “ As a missi
Slide 25: Financial Pillar – Creating value for shareholders
Financial Pillar – Creating value for shareholders 1200.0 1000.0 First Nigerian listed company to report its financial results using XBRL format with the IFRS taxonomy 800.0 ₦B 600.0 400.0 200.0 Buy-back programme 0.0 renewed for an 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 additional year R
Slide 26: Financial Pillar – XBRL Reporting
Financial Pillar – XBRL Reporting First Nigerian listed company to report its financial results using eXtensible Business Reporting Language (XBRL) format with the IFRS taxonomy “ We believe that adopting XBRL reporting will strong benefit Dangote Cement’s existing and potential investors. It repres
Slide 27: Social Pillar - COVID-19 Interventions continue in 2021
Social Pillar - COVID-19 Interventions continue in 2021 Lagos State Isolation Centre donated by CACOVID Sustainability week Key initiatives included ‘Waste to Wealth’ campaigns, tree planting, skills & capacity building, donations to less privileged, etc. All initiatives focused on advancing six
Slide 28: 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