Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — H1 2021 Earnings Presentation
25 slides from Dangote Cement's earnings presentation, Aug 2, 2021
Slide 1: H1 2021 results
H1 2021 results UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2021 2nd August 2021 @dangotecement www.dangotecement.com
Slide 2: H1 2021: A Solid First Half
H1 2021: A Solid First Half SDG FINANCIAL OPERATIONAL SUSTAINABILITY Alignment 21% female Board Revenue up 44.8% Group volume up 26.1% representation at ₦690.5B at 15.3Mt Diverse Board with 6 different nationalities Accorded the long-term Group EBITDA up 61.0% Nigeria volumes up 33.2% issuer rating
Slide 3: The year so far…
The year so far….. 200 160 120 80 March May May May June AAA rating accorded Bond Issuance Resumed Clinker Virtual AGM 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 3.4% in 2021 • The growth is supported by improved exports and commodity
Slide 5: Financial and Operational Overview
Financial and Operational Overview Investor Presentation
Slide 6: H1 2021 – Strong Performance
H1 2021 – Strong Performance Double digit volume growth in Nigeria and Pan-Africa Financial Six months ended 30th June 2021 2020 Change • Group revenues up 44.8%, supported by strong Sales volumes* ‘000t ‘000t % volume growth, lower discounts/rebates Nigeria 9,869 7,410 33.2% • Group EBITDA up 61.0%
Slide 7: Group Financial Overview
Group Financial Overview Income Statement 2021 ₦m 2020 ₦m % change Revenue 690,545 476,852 44.8% Cost of sales (276,115) (202,420) 36.4% Gross profit 414,430 274,432 51.0% Gross margin 60.0% 57.6% 2.4pp EBITDA 351,065 218,071 61.0% EBITDA margin 50.8% 45.7% 5.1pp EBIT 302,197 173,479 74.2% EBIT marg
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 346,980 - 346,980 working capital changes Change in working capital (35,011) - (35,011) Income tax paid (14,879) - (14,879) Additions to fix
Slide 9: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Balance Sheet As at 30/6/21 As at 31/12/20 ₦m ₦m Property, plant and equipment 1,396,538 1,390,687 Other non-current assets 57,341 77,072 Intangible Assets 4,976 4,554 Current Assets 464,119 404,303 Cash and Cash Equivalents 151,705 145,835 Total Assets 2,074,679 2,
Slide 10: Nigeria – Robust Cement Demand
Nigeria – Robust Cement Demand 9,869 311 • Record high H1 sales volumes in Nigeria of 9.9Mt, with growth at 33.2% 7,595 7,410 • Robust growth trend continues with strong demand 201 194 from housing and infrastructure • Solid performance with record high H1 EBITDA of ₦311.2B, up 60.1%; supported by l
Slide 11: Pan-Africa – double digit volume growth
Pan-Africa – double digit volume growth • Volumes up 15.5% to 5.5Mt EBITDA trend • Revenues up 36.9% to ₦198.5, supported by higher 28.0% realised prices and volume growth 23.8% 24.0% • Strong EBITDA of ₦47.2B, up 49.8% 22.4% • EBITDA margin of 23.8% 20.0% 17.3% 16.9% • Volume growth in all our coun
Slide 12: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 2Mt total market • Estimated market sales of • Estimated 3.7Mt total sales for H1 2021 467Kt for H1 2021 market sales for H1 2021 • Increase in consumption • DCP Congo sold 231Kt of • DCP sales of 1.1Mt for H1 owing to individual cement, a 70% incr
Slide 13: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated 3.5Mt total • Estimated 3.9Mt total • Estimated market sales of market sales for H1 2021 market sales for H1 2021 606Kt for H1 2021 • DCP Ghana sold 300Kt of • DCP sales of 822Kt for H1 • DCP sales of 186Kt for H1 cement, a 44.4% increase 2021,
Slide 14: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • High residential housing • Estimated 2.8Mt total • Estimated 1.25Mt total demand since H2 2020 market sales for H1 2021 market sales for H1 2021 • Sales at DCP South Africa • DCP sales of 792Kt for H1 • DCP sales of 385Kt for H1 increased by 22% year on
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 600 400 350 500 51 198 300 148 250 400 200 300 Long term 150 303 Short term 100 200 339 65 1 355 36 50 100 4 10 36 100 0 Next 12 2022 2023 2024 2025 2026 2028 months 0 Bank
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
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) refer
Slide 21: 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: 21% female Michel Puchercos Devakumar Edwin Board members Olakunle Alake Emmanuel Ikazoboh * Cherie Blair* Arvind Pathak 6
Slide 22: Environmental Pillar – Focus on GHG and water
Environmental Pillar – Focus on GHG and water Circular Economy Model In 2020, we increased corporate focus and strategy by committing to the use of alternative fuel sources in our energy mix. C We are exploring fully the feasibility of • Submission to Carbon Disclosure Project increasing the use of
Slide 23: 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 Summary of Sustainability Week Impact: 33 schools and 1560 volunteers 7,633 hours 11,833 70 initiatives 58 communities students 33 schools impacted during 11,833 st
Slide 24: 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 25: 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