Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — 9M 2020 Earnings Presentation
29 slides from Dangote Cement's earnings presentation, Nov 9, 2020
Slide 1: 9M 2020 results
9M 2020 results UNAUDITED RESULTS FOR THE NINE MONTHS ENDED 30TH SEPTEMBER 2020 9th NOVEMBER 2020 @dangotecement www.dangotecement.com
Slide 2: Progress in 2020
Progress in 2020 Q1 2020 Q2 2020 Q3 2020 9M 2020 9M 2019 Change ‘000 ‘000 ‘000 ‘000 ‘000 Sales volumes tonnes tonnes tonnes tonnes tonnes % Nigeria 4,018 3,392 4,505 11,915 10,816 10.2% Pan-Africa 2,316 2,416 2,733 7,465 7,202 3.7% Inter-company sales - (28) (146) (174) - - Total 6,334 5,780 7,092 1
Slide 3: Macro-economic environment
Macro-economic environment • The Sub-Saharan African region was hit by the twin shock of the COVID-19 pandemic and commodity market decline in 2020 DCPs Q3 demand recovery • According to the IMF, SSAs GDP grew 3.2% in 2019; however, it is estimated to contract by 3.0% in 2020 • Nigeria and South Afr
Slide 4: CACOVID & Aliko Dangote Foundation COVID-19 Interventions
CACOVID & Aliko Dangote Foundation COVID-19 Interventions • ₦30bn raised so far by CACOVID, an intervention initiative Protecting our people and customers set up by Alhaji Aliko Dangote; • ₦2.5bn contributed by Aliko Dangote Foundation (ADF); • 16 Ambulances and Rapid Response vehicles donated by AD
Slide 5: Q3 2020 – Best quarter across board
Q3 2020 – Best quarter across board Financial highlights Three months ended 30th September Q3 2020 Q3 2019 Change Sales volumes* ‘000t ‘000t % • Record high Group quarterly EBITDA of ₦137.0B, up 60.6% YoY Nigeria 4,505 3,221 39.9% Pan-Africa 2,733 2,502 9.2% • Best third quarter in terms of volumes
Slide 6: 9M 2020 – Resilient performance
9M 2020 – Resilient performance Financial Nine months ended 30th September 2020 2019 Change • Group revenue up 12.0%, supported by higher Sales volumes* ‘000t ‘000t % volumes Nigeria 11,915 10,816 10.2% • Group EBITDA up 17.1%; strong operating Pan-Africa 7,465 7,202 3.7% performance in Nigeria and
Slide 7: Group Financial Overview
Group Financial Overview Income Statement 2020 2019 Nine months to 30th September ₦m ₦m % change Revenue 761,444 679,791 12.0% Cost of sales (317,540) (290,015) 9.5% Gross profit 443,904 389,776 13.9% Gross margin 58.3% 57.3% 1.0pp EBITDA 355,020 303,223 17.1% EBITDA margin 46.6% 44.6% 2.0pp EBIT 28
Slide 8: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Movement in Net Debt Cash ₦m Debt ₦m Net debt ₦m As at 31st December 2019 123,903 (351,434) (227,531) Cash from operations before 356,463 - 356,463 working capital changes Change in working capital 28,756 - 28,756 Income tax paid (14,105) - (14,105) Additions to fix
Slide 9: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Balance Sheet As at 30/9/20 As at 31/12/19 ₦m ₦m Property, plant and equipment 1,259,906 1,206,749 Other non-current assets 94,320 124,203 Intangible Assets 4,829 3,663 Current Assets 313,184 282,833 Cash and Cash Equivalents 176,653 123,903 Total Assets 1,848,892 1
Slide 10: Nigeria – Fulfilling our Export Plan
Nigeria – Fulfilling our Export Plan 174 69 • Total sales volumes in Nigeria at 11.9MT, up 10.2% 476 • Strong EBITDA of ₦316.1B, up 14.5% despite impact of COVID-19 on Q2 • Clinker exports: 174KT exported to West and Central 10,340 Africa 11,672 • Cement exports: exports by road to ECOWAS resumed a
Slide 11: Nigeria – Strong Recovery in Domestic Market
Nigeria – Strong Recovery in Domestic Market Dangote Cement has recovered from the Q2 impact of 2020 quarterly domestic volume trend* COVID-19: 4,400 4,290 Catch-up effect from suspended projects in Q2 4,200 Low interest rate environment driving strong demand 4,018 4,000 for real estate assets
Slide 12: Pan-Africa – Record High EBITDA Margin
Pan-Africa – Record High EBITDA Margin • Volumes up at 7.5Mt, up 3.7% despite lockdowns and restrictions in Q2 EBITDA trend • Revenues up 9.1% to ₦232.6B, supported by higher 24.0% 22.4% realised prices and volume growth 20.0% • Record high EBITDA of ₦52.1B, up 37.9% Record high EBITDA margin 17.3%
Slide 13: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 2.6Mt total • Estimated 707Kt total • Estimated 5.6Mt total market sales for 9M 2020 market sales for 9M 2020 market sales for 9M 2020 • DCP sales of 1Mt for 9M • DCP Congo sold 269Kt of • DCP sales of 1.6Mt for 9M 2020, up 18% compared to cement,
Slide 14: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated 5.0Mt total • Estimated 5.6Mt total • Estimated 648Kt total market sales for 9M 2020 market sales for 9M 2020 market sales for 9M 2020 • DCP Ghana sold 307Kt of • DCP sales of 1.2Mt for 9M • DCP sales of 195Kt for 9M cement, a 21% decrease 2020,
Slide 15: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • Negative growth in cement • Estimated 4.2Mt total • Estimated 1.9Mt total market due to depressed market sales for 9M 2020 market sales for 9M 2020 economy • DCP sales of 856Kt for 9M • DCP sales of 548Kt for 9M • DCP SA 9M 2020 sales 2020, down 7% comp
Slide 16: Debt and Liquidity
Debt and Liquidity Robust Capital Structure Investor Presentation
Slide 17: Strong track record of accessing the local debt market
Strong track record of accessing the local debt market Bond Programme Commercial Paper Programme In April, we successfully completed the issuance of ₦100B Successfully issued ₦100B series 15 and 16 in May series 1 fixed rate 5-year bond at a rate of 12.5% Successfully issued 50B series 17 and 18 in
Slide 18: Robust Capital Structure
Robust Capital Structure Strong balance sheet with available liquidity Diverse Capital Structure, ₦B Debt Maturity Profile, ₦B 500 250 400 55 3 145 200 9 144 150 300 34 Long term 100 116 200 Short term 34 99 294 50 100 100 75 138 46 0 17 0 4Q20 2021 2022 2023 2024 2025 Bank loan Bond* Commercial Rel
Slide 19: Robust Capital Structure and lower cost of debt
Robust Capital Structure and lower cost of debt LENDING DIVERSIFICATION RATINGS • On 23 January 2020, Global Credit Ratings affirmed the long term Facility Pricings Draw down Tenor and short-term national scale issuer ratings of AA+(NG) and Bond 12.5% ₦100B 2025 A1+(NG) respectively, assigned to DCP
Slide 20: Next Phase of Growth
Next Phase of Growth Focus on West and Central Africa Investor Presentation
Slide 21: Cementing Africa's Economic Independence
Cementing Africa's Economic Independence We make the regional and continental free trade agreements a reality Our vision is for West and Central Africa to be cement and clinker independent, with Nigeria the main export hub 7 clinker shipment from Nigeria to date Clinker export from Tanzania to neigh
Slide 22: Focus on West and Central Africa Expansion Strategy
Focus on West and Central Africa Expansion Strategy Existing operations Opportunities Cote d’Ivoire 1.5mt Niger Senegal Ghana Nigeria Sierra Leone Ethiopia Cameroon Gabon Congo Tanzania Liberia Zambia Togo Expansion focus South Africa Integrated plant Grinding plants in West Africa with little or no
Slide 23: Benefits of the Export Strategy
Benefits of the Export Strategy HIGHER CAPACITY UTILISATION IN NIGERIAN OPERATION: Increase 01 production due to exports will increase capacity utilisation in the Nigerian operation and in turn reduce fixed cost per tonnes. Additional earnings for the Nigerian operation. ECOWAS BENEFITS: African Con
Slide 24: Sustainability
Sustainability Investor Presentation
Slide 25: Sustainability & Governance
Sustainability & Governance The Dangote Way Our 7 Sustainability Pillars support our unique approach to creating a world-class enterprise. We released our 2019 combined Annual Report and Sustainability Report certified by the Global Reporting Initiative (GRI) and Externally Assured. CULTURAL ECONOM
Slide 26: Sustainability & Governance
Sustainability & Governance The Dangote Way – Our 7 Sustainability Pillars 1 2 3 OPERATIONAL PILLAR ECONOMIC PILLAR ENVIRONMENTAL PILLAR Supply Chain empowerment National Consumer Promo Impactful Water Efficiency initiatives intensified produces 311 millionaires in Campaign initiated across DCP Nige
Slide 27: Sustainability & Governance
Sustainability & Governance The Dangote Way – Our 7 Sustainability Pillars 4 55 6 7 INSTITUTIONAL PILLAR CULTURAL PILLAR SOCIAL PILLAR FINANCIAL PILLAR “Facts Behind the Employee Volunteering DCP Ibese commits ₦4 Billion Delivered a resilient financial Sustainability Report” institutionalized to soc
Slide 28: Nigeria – National Consumer Promo
Nigeria – National Consumer Promo BAG OF GOODIES SEASON 2 National Consumer Promo has made 311 millionaires across all states in Nigeria as at end of October The promo is well received by consumers and driving stronger demand for Dangote cement National Consumer Promo Press Launch in July Promo exte
Slide 29: For further information contact: Temi Aduroja
For further information contact: Temi Aduroja Head of Investor Relations Dangote Cement Plc +44 207 399 3070 InvestorRelationsDangoteCement@dangote.com @dangotecement www.dangotecement.com