Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — Q1 2017 Earnings Presentation
15 slides from Dangote Cement's earnings presentation, Mar 31, 2017
Slide 1: Unaudited results for the Three months to 31st March 2017
Unaudited results for the Three months to 31st March 2017
Slide 2: Q1 2017 highlights
Q1 2017 highlights • Strong financial performance despite volume fall 3m to 31st March 2017 2016 Change Sales volumes ‘000t ‘000t • Revenues up 48.1% Nigeria 3,770 4,513 (16.5%) Pan-Africa 2,342 1,937 21.0% • Group EBITDA up 42.3% Inter-company sales (87) (15) • Nigeria EBITDA / tonne up 78.4% Total
Slide 3: Financial overview
Financial overview Income Statement Three months to 31st March 2017 2016 ₦B ₦B % change Comments Revenue 208.2 140.5 48.1% Cost of sales (87.8) (62.2) 41.2% Gross profit 120.4 78.3 53.7% Gross margin 57.8% 55.7% EBITDA 103.0 72.4 42.4% Strong uplift from Nigeria after price increase EBITDA margin 49
Slide 4: Financial overview (cont'd): Movement in net debt
Financial overview (cont’d) Movement in net debt Cash Debt Net debt ₦B ₦B ₦B As at 1st January 2017 115.7 (356.5) (240.8) Cash generated from operations before 108.2 - 108.2 changes in working capital Changes in working capital (9.1) - (9.1) Income tax paid (0.1) - (0.1) Additions to fixed assets (1
Slide 5: Financial overview (cont'd): Balance sheet
Financial overview (cont’d) Balance sheet As at As at 31/3/17 31/12/16 ₦B ₦B Property, plant and equipment 1,151.3 1,155.7 Other non-current assets 67.6 64.9 Intangible assets 5.0 4.1 Current assets 211.0 187.5 Cash and cash equivalents 143.9 115.7 Total Assets 1,578.8 1,527.9 Non-current liabilitie
Slide 6: Analysis of debt
Analysis of debt ₦bn Short-term* Long-term Total % Naira 159 20 179 55% US$ 40 13 53 16% Rand 7 40 47 15% Other 11 34 45 14% Total 217 107 324 100% *Including overdraft • Most short-term debt is to parent; plan to refinance with Naira bond • Low US$ debt exposure, mainly in relation to LCs • DCP Nig
Slide 7: Strong Nigeria performance
Strong Nigeria performance • Strong improvement in Q1 EBITDA Nigeria performance – EBITDA per tonne of ₦26,175 (Q1 2016: ₦14,674) Three months to 2017 2016 Change 31st March – Higher pricing Volumes* (kt) 3,770 4,513 (16.5%) – Better fuel mix including own-mined coal Revenue* (₦B) 152.4 107.2 42.2%
Slide 8: Strong uplift in Nigeria Q1 EBITDA
Strong uplift in Nigeria Q1 EBITDA ₦ 45,000 4,513 4,500 ₦ 40,000 4,253 ₦ 35,000 ₦ 40,412 ₦ 37,817 ₦ 30,000 4,000 64.8% ₦ 25,000 65.7% ₦ 28,192 ₦ 20,000 ₦ 23,743 ₦ 25,738 3,770 ₦ 15,000 ₦ 24,859 61.8% 53.3% 3,500 44.0% ₦ 10,000 ₦ 26,175 ₦ 14,674 3,233 3,130 ₦ 13,729 ₦ 5,000 ₦ 12,407 ₦0 3,000 Q1 2016
Slide 9: Nigeria price evolution
Nigeria price evolution Ex-factory price before discounts (excl. VAT) ₦ 2,600 ₦ 2,533 $200 ₦ 2,462 ₦ 2,400 $189 $190 ₦ 2,224 ₦ 2,200 $180 $177 ₦ 2,081 $176 ₦ 2,033 ₦ 2,000 $170 $167 $166 $164 $160 ₦ 1,800 $156 $160 ₦ 1,652 ₦ 1,629 ₦ 1,567 ₦ 1,581 ₦ 1,600 $150 ₦ 1,462 $145 $137 $142 ₦ 1,400 ₦ 1,327 $
Slide 10: Nigeria fuel mix greatly improved
Nigeria fuel mix greatly improved Three months to 31st March Obajana Ibese 2017 2016 2017 2016 Gas 47.9% 66.8% 53.5% 43% Imported coal 8.0% 14.6% 30.9% 43% Nigerian coal 37.9% 0% 12.2% 0% LPFO 6.2% 18.6% 3.4% 14% 100% 100% 100% 100% 10
Slide 11: Pan-Africa gaining momentum
Pan-Africa gaining momentum • Strong performance despite economic downturn Rest of Africa performance across much of Africa Year ended 2017 2016 Change 31st December • Sales volumes up 21.0% to 2.3Mt Volumes sold (kt) 2,342 1,937 21.0% • Revenues up 74.2% to ₦58.7B • EBITDA up 2.2% to ₦7.5B Revenue
Slide 12: Country updates
Country updates Cameroon Ethiopia • GDP expected to grow by nearly 6% in 2017 • Economy remains robust; increasing number of • Over 300kt cement sold in Q1 2017, up 14% on the government driven projects 261kt old in Q1 2016 • Dangote Cement sold 527kt cement in Q1 2017, up • Market share 43% 17% on
Slide 13: Country updates
Country updates Sierra Leone Tanzania • Surge in building activities after Ebola epidemic • Volumes up 340% to 228Kt • Dangote Cement operations began in January 2017, • Market share of 21% just 12m after launch making first contributions to Group results • Diesel gensets to be replaced by gas • Nea
Slide 14: Update on trading and outlook for 2017
Update on trading and outlook for 2017 • Sharp increase in Nigerian EBITDA/tonne will drive substantial margin gains in 2017, even if volumes are flat • Focus remains on EBITDA in US$ +47% • Volume growth expected from: +46% • Increased exports from Nigeria to Ghana • Tanzania ramp-up in 2017 • New
Slide 15: Investor Relations contacts
Investor Relations contacts 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 15