Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — 9M 2023 Earnings Presentation
30 slides from Dangote Cement's earnings presentation, Oct 30, 2023
Slide 1: 9M 2023 results
9M 2023 results UNAUDITED RESULTS FOR NINE MONTHS ENDED 30th SEPTEMBER 2023 30th October 2023 @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 9 1 2 10 Integrated 7 Our vision is to be a global
Slide 3: SSA – Macro Economic Environment
SSA – Macro Economic Environment • Sub-Saharan Africa (SSA) is estimated to grow at a slower pace of 3.3% in 2023 from 4.0% in 2022. This is due to the challenges of accelerating commodity prices, fiscal Operating in 10 imbalance and a pile up of public debt, which the region is still confronted wit
Slide 4: Nigeria – Macro Economic Environment
Nigeria – Macro Economic Environment Nigeria transitioned to a new government in the second quarter after holding its 7th election cycle in March Economic Growth Interest Rate Exchange Rate ▪ In the second quarter, Nigeria floated the naira, ▪ Nigeria’s economy grew by 2.51% in the second ▪ The CBN
Slide 5: 9M 2023: PAT up 30.2% at ₦277.5B
9M 2023: PAT up 30.2% at ₦277.5B FINANCIAL OPERATIONAL SUSTAINABILITY SDG Alignment 27% female Board Group revenue up 28.7% Strong pan-Africa volumes up representation to ₦1,514.6B 15.2% to 8.5Mt Diverse Board with 6 different nationalities Completed Tranche I of the Group EBITDA up 28.5% to Commenc
Slide 6: 9M 2023 – Impressive Nine Months Performance
9M 2023 – Impressive Nine Months Performance Diversification benefit coming from a strong pan-Africa performance Financial Nine months ended September 9M 2023 9M 2022 Change • Group revenues up 28.7% Sales volumes* ‘000t ‘000t % • Group EBITDA up 28.5%; with a margin of 43.8% Nigeria volumes 12,017
Slide 7: Group Financial Overview
Group Financial Overview Income Statement 9M 2023 ₦m 9M 2022 ₦m % change Revenue 1,514,601 1,177,256 28.7% Cost of sales (642,743) (483,831) 32.8% Gross profit 871,858 693,425 25.7% Gross margin 57.6% 58.9% (1.3pp) EBITDA 662,762 515,879 28.5% EBITDA margin 43.8% 43.8% EBIT 561,008 433,623 29.4% EBI
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 2022 283,843 (706,734) (422,891) Cash from operations before working 615,728 - 615,728 capital changes Change in working capital (38,173) - (38,173) Income tax paid (124,482) - (124,482) Additions to f
Slide 9: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Balance Sheet As at 30/9/23 As at 31/12/22 ₦m ₦m Property, plant and equipment 2,019,007 1,527,293 Other non-current assets 114,386 58,676 Intangible Assets 11,262 6,225 Current Assets 814,816 739,618 Cash and Cash Equivalents 385,262 283,843 Total Assets 3,344,733
Slide 10: Nigeria – Record EBITDA on Effective Cost Management
Nigeria – Record EBITDA on Effective Cost Management • 9M 2023 volumes were down, due to the election uncertainties 933 508 and the currency crunch in the first quarter and intense rainfall 480 in the third quarter 891 • 9M revenues for the Nigeria operations rose 4.8% to ₦933.1B on price increase t
Slide 11: Pan-Africa – Strong Performance across Board, Particularly Ethiopia
Pan-Africa – Strong Performance across Board, Particularly Ethiopia • Volumes up 15.2% to 8.5Mt, driven by healthy volume growth from Senegal, Congo and 206.0 Strong pan-African EBITDA Zambia 170 • Pan-African volume accounts for 42% of Group volume, reinforcing our diversification 156.0 strategy •
Slide 12: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 3.1Mt total • Estimated market sales of • Estimated 5.2Mt total market sales in 9M 2023 671Kt in 9M 2023 market sales in 9M 2023 • Resilient cement sector • Clinker exports to • DCP sales of 1.9Mt in 9M supporting the overall Cameroon commenced in
Slide 13: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated over 4.9Mt total • Estimated total market • Estimated market sales of market sales in 9M 2023 sales of 5.2Mt in 9M 2023 638.6Kt in 9M 2023 • DCP Ghana sold 232Kt of • DCP sold 1.2Mt of cement • Pockets of stock shortages cement in 9M 2023, up in
Slide 14: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • Dangote Cement South Africa • Estimated 5.5Mt total market • Estimated 1.8Mt total continues to show resilience in sales for 9M 2023 market sales for 9M 2023 an economy burdened with a deep energy crisis and power • DCP sold 1.5Mt for 9M 2023, • DCP Zam
Slide 15: Debt and Liquidity
Debt and Liquidity Robust Capital Structure Investor Presentation
Slide 16: Track Record of Accessing the Debt Capital Market
Track Record of Accessing the Debt Capital Market Bond Programme Commercial Paper Programme ₦300B Multi-Instrument Programme enabling DCP to issue Green Bonds Upsized our commercial paper programme to ₦300 billion from and Sukuk ₦150 billion Outstanding Bonds Outstanding Commercial Paper Bond Date i
Slide 17: Successful Share Buy-Back Programme
Successful Share Buy-Back Programme Tranche I of DCPs Second Share Buy-Back Programme Completed Daily Summary 7,000 400 Date Stockbroker Shares Repurchased Value Repurchased Avg Price DCP’s share price, N 6,500 352 17/07/2023 All Stockbrokers 16,623,661 5,607,316,605.4 337.3 350 18/07/2023 All Stock
Slide 18: Robust Capital Structure
Robust Capital Structure LENDING DIVERSIFICATION RATINGS • On 21 July 2023, Global Credit Ratings Facility Pricings Draw down Tenor ➢ long-term Issuer rating affirmed at AA+ (NG), with a stable outlook, while Bond - April 2020 12.5% ₦100B 2025 the short-term issuer rating at A1+(NG) was with a stabl
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: 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 early 2024 Nigeria Sierra Leone Ethiopia Cameroon Congo Cote d’Ivoire 1.5Mta (phase 2) – 2024 Tanzania
Slide 23: Sustainability
Sustainability Investor Presentation
Slide 24: Strong Board and Governance Framework
Strong Board and Governance Framework Board of Directors (includes five Independent Directors) Diverse Board • 27% Female Board Members (gender diversity) Aliko Dangote Devakumar Edwin Arvind Pathak Emmanuel Ikazoboh * • 6 Nationalities Olakunle Alake Philip Mathew Cherie Blair* Viswanathan Shankar
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 2022 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 2023 highlights)
ESG is at the Heart of Our Operation (9M 2023 highlights) Environmental Social Governance • Reviewed and implemented new governance policies • Alternative Fuel Thermal Substitution Rate (TSR) at 9.8% • N1,361 million spent on social intervention activities in line with best practices in 9M 2023 vers
Slide 27: CDP Rating Upgraded to B
CDP Rating Upgraded to B B B B- 2022 50 Sustained progress in • Submission to Carbon Disclosure Project (CDP) climate and environmental • Rated “B” by CDP on our carbon disclosure for sustainability 2021 2022, second consecutive upgrade disclosure C Management • One of the highest ratings in Sub-Sah
Slide 28: Social Performance
Social Performance Customer service week Sustainability week Diversity and Integration Theme: “Sustainable Production and Consumption – The Dangote Way” • Dangote Cement’ crèche ₦1,361mn spent on CSR in 9M 2023, up by 53.8% continues to support workplace childcare. • To promote gender diversity, Dan
Slide 29: Outstanding Financial Performance
Outstanding Financial Performance 2022 Group revenue up Group Revenue (N’B) Group EBITDA (N’B) 2000 17.0% at 800 708.2 1,618.3 ₦1,618.3B ($3.8B) 1600 700 600 1200 500 400 800 300 2022 Group EBITDA up 200 134.0 400 241 3.5% at 100 ₦708.2B ($1.7B) 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 30: For further information contact
For further information contact: Temi Aduroja Head of Investor Relations Dangote Cement Plc InvestorRelationsDangoteCement@dangote.com @dangotecement www.dangotecement.com