Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — H1 2016 Earnings Presentation
14 slides from Dangote Cement's earnings presentation, Jul 28, 2016
Slide 1: Unaudited results for the six months to 30th June 2016
Unaudited results for the six months to 30th June 2016 28th July 2016
Slide 2: Highlights for H1 2016
Highlights for H1 2016 Financial results Regional revenues (₦bn) • Revenue up 20.6% to ₦292.2B Six months to 2016 2015 Change 30th June • EBITDA down 10.2% to ₦132.5B at 45.4% margin, on lower selling price, higher fuel costs in Nigeria and plants in ramp-up Nigeria 216.6 207.8 4.2% West & Central •
Slide 3: Financial Overview
Financial Overview Income Statement Six months to 30th June 2016 2015 ₦B ₦B % change Comments Maiden H1 contributions from non-Nigerian factories and improved revenue from Revenue 292.2 242.2 20.6% Nigeria Cost of sales (139.2) (84.5) 64.7% Higher fuel costs in Nigeria owing to gas disruption Gross
Slide 4: Financial Overview (cont'd)
Financial Overview (cont’d) % of average cash costs per tonne (Nigeria, 2016 ytd) Plant general 6% SG&A 12% Direct wages 6% Kiln fuel (cement plant) 36% O&M contract 3% Maintenance 5% Other variable Packaging 3% 10% Refractories Power Plant 1% 10% Gypsum Limestone 5% Mine costs 1% 2% Approximately 6
Slide 5: Financial Overview (cont'd)
Financial Overview (cont’d) Movement in net debt Cash Debt Net debt ₦B ₦B ₦B As at 1st January 2016 40.8 (245.0) (204.2) Cash generated from operations before 113.9 - 113.9 changes in working capital Changes in working capital 7.6 - 7.6 Income tax paid (0.7) - (0.7) Capital expenditure (54.6) - (54.
Slide 6: Financial Overview (cont'd)
Financial Overview (cont’d) Balance sheet As at As at 30/06/16 31/12/15 ₦B ₦B Property, plant and equipment 1,065.2 917.2 Other non-current assets 26.1 25.1 Intangible assets 6.3 2.6 Current assets 224.6 125.2 Cash and cash equivalents 49.1 40.8 Total Assets 1,371.3 1,110.9 Non-current liabilities 8
Slide 7: Nigeria
Nigeria • Record H1 sales up 38.8% to nearly 8.8Mt Nigeria performance • Q2 sales up 31.8% despite recent price increases Six months to 2016 2015 Change 30th June • Market share of 66% vs 58% in H1 2015 Volumes sold (kt) 8,766 6,315 38.8% • Imports rapidly falling away at lower price • Gas disruptio
Slide 8: West & Central Africa
West & Central Africa • Strong performance across the region West & Central Africa performance Six months to • Sales volumes up 185% to nearly 2.6Mt, including Ethiopia 30th June 2016 2015 Change • Revenues rise 227% to ₦49.9B, EBITDA up 230% Volumes sold (kt) 2,562 898 185% • Excellent sales increa
Slide 9: West & Central Africa
West & Central Africa Cameroon Ethiopia • GDP growing at c5% but slowing on lower oil price • Economy slowed by drought and subsequent • Infrastructure investment continues but at more flooding modest levels • Government committed to infrastructure • Cement pricing generally stable, $110 at June 201
Slide 10: South & East Africa
South & East Africa • Sales volumes up 79.6% to more than 1.6Mt South & East Africa performance • Revenues up 50.9% to ₦26.1B Six months to 2016 2015 Change 30th June • EBITDA falls 67.4% owing to lower pricing across Volumes sold (kt) 1,656 922 79.6% the region, FX challenges and fuel costs in Tanz
Slide 11: South & East Africa
South & East Africa South Africa Zambia • Economy weak on China slowdown, Brexit worries • Low copper prices impact export earnings, • But infrastructure investment set to rise Kwacha depreciation vs US$ • Strong 18% volume growth despite economy • Increased unemployment, 20% inflation, power shorta
Slide 12: Corporate Developments
Corporate Developments • Dorothy Ufot, SAN, appointed as first female Director • Brings considerable experience as a leading commercial lawyer • Substantial experience in international business law • Strong expertise in international commercial arbitration +47% • Massimo Bettanin appointed Head of E
Slide 13: Outlook for 2016
Outlook for 2016 • Strong volume growth expected • Nigeria has locked in 18% growth even if H2 is flat on 2015 • >1Mt expected in July despite 3-day midweek Eid holiday, well above July 15 • Ghana to import more cement from Nigeria +46% +47% • Tanzania, Congo to contribute in H2 • Focus on protectio
Slide 14: Investor Relations
Investor Relations For further information contact: Carl Franklin Head of Investor Relations Dangote Cement Plc +44 207 399 3070 +44-7713 634 834 carl.franklin@dangote.com www.dangotecement.com @DangoteCement 14