Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — FY2011 Earnings Presentation
12 slides from Dangote Cement's earnings presentation, 2012
Slide 1: An emerging cement major building shareholder value and prosperity in Africa
An emerging cement major building shareholder value and prosperity in Africa Audited Results for the year ended 31 December 2011
Slide 2: Disclaimer
Disclaimer This document is not an offer of securities for sale in the United States. Any securities discussed herein have not been and will not be registered under the US Securities Act of 1933, as amended (the “US Securities Act”) and may not be offered or sold in the United States absent registra
Slide 3: Highlights
Highlights Operational • Cement sales up 9.2% to 8.6 million tonnes • Obajana reaches 101% utilisation, 5.08 million tonnes • Imports of 1.8 million tonnes • Ibese and Obajana expansion now fully operational • MOU signed for 3mt facility in Calabar Financial • Consolidation of Sephaku and African pr
Slide 4: Strong growth in profits
Strong growth in profits Company Group (₦bn) (₦bn) Year to 31 December 2010 2011 Change Comments Sales volume (kt) 7,962 8,653 9.2% Organic growth from existing plants Revenue 202.6 235.9 16.4% Higher output, higher ASP, small contribution from Sephaku Revenue per tonne (₦) 25,445 27,240 6.6% Calcul
Slide 5: Performance analysis
Performance analysis Share of revenue Share of EBITDA Imports 5% Imports Gboko 22% 16% Gboko Obajana 19% 59% Obajana 79% Obajana is the powerhouse of sales and profitability 5
Slide 6: Strong balance sheet
Strong balance sheet Year to 31 December Company Group Comments (₦bn) 2010 2011 Fixed assets 310.1 433.9 Impact of consolidation, increased capital WIP Current assets 82.9 81.6 Includes ₦22.4bn cash and equivalents Short-term creditors 86.5 111.5 Short-term debts decreased to ₦34.6bn Net current lia
Slide 7: A roadmap for expansion
A roadmap for expansion FY 2011 FY 2012 FY 2015 8mt capacity 21.5mt capacity 46.3mt capacity • Two plants in Nigeria, 8mt capacity • Nigerian capacity increased to 20mt • Nigerian capacity 32mt • Obajana 5mt • Obajana 10mt • Obajana 13mt • Gboko 3mt • Ibese 6mt • Ibese 12mt • Gboko 4mt • Gboko 4mt •
Slide 8: Expanding for African growth
Expanding for African growth • Africa’s economic growth is a major opportunity – Rising demand for cement, but structural deficits in production • $2.5bn investment committed to Africa – Eight plants, six import terminals, EPC contracts signed – Fund with Nigeria cash flow and local debt • Targeting
Slide 9: Progress of building projects
Progress of building projects Construction milestones Plant Capacity Contract Site Building Mech, elec Building Load Location Production type (mtpa) signed mobilised work begins work begins complete testing Cameroon Grinding 1.0 Q2 2011 Q2 2012 Q2 2012 Q3 2012 Q2 2013 Q2 2013 Q2 2013 Ethiopia Integr
Slide 10: Developing total capacity
Developing total capacity 50 45 40 35 30 25 20 15 10 5 0 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Obajana Gboko Ibese Senegal Gabon Cameroon Ethiopia Congo South Africa Tanzania Zambia Note: Estimated dates, subject to change. Excludes 5mt import capaci
Slide 11: Summary and outlook
Summary and outlook • Strong organic growth in 2011 • Ibese fully operational and ramping up well – Recently broke through 10,000 tonnes/day, about 60% daily utilisation – But gas pressure issues forcing occasional use of LPFO in one kiln • Obajana expansion now fully operational – Ramp-up progressi
Slide 12: Investor relations
Investor relations Equity research is provided by the following analysts Broker Analyst Location African Alliance Claire te Riele Johannesburg Afrinvest Oladipo James Lagos ARM Research Jola Adeyemi Lagos BGL Jimi Ogbobine Lagos CSL Stockbrokers Oludare Fajimolu Lagos FBN Capital Tunde Abidoye Lagos