Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — FY2022 Earnings Presentation
30 slides from Dangote Cement's earnings presentation, Feb 27, 2023
Slide 1: FY 2022 results
FY 2022 results AUDITED RESULTS FOR YEAR ENDED 31st DECEMBER 2022 27th February 2023 @dangotecement www.dangotecement.com
Slide 2: FY 2022: Strong results, despite elevated inflation
FY 2022: Strong results, despite elevated inflation SDG FINANCIAL OPERATIONAL SUSTAINABILITY Alignment 27% female Board Group revenue up 17.0% Group volumes down 5.1% representation at ₦1,618.3B at 27.8Mt Diverse Board with 6 different nationalities Issuance of ₦116B Group EBITDA up 3.5% Commissione
Slide 3: The year at a glance
The year at a glance….. 200 160 120 80 January February March April June Buy-Back New female Board Member Okpella Plant Bond Issuance AGM Successful issuance of ₦116B Released our 2021 combined Ms. Halima Aliko-Dangote appointed Completed the 2nd tranche of the Continued ramp up on our 3Mt series 2
Slide 4: SSA - Macro-economic environment
SSA - Macro-economic environment • Sub-Saharan Africa (SSA) is estimated to have grown at 3.8% in 2022, slower than the 4.7% rebound in 2021. • The slower than expected growth is premised on the huge supply shocks from the Russia-Ukraine crisis and accelerating inflation at a pace not seen in decade
Slide 5: Nigeria - Macro-economic environment
Nigeria - Macro-economic environment Economic Growth Interest Rate Exchange Rate The Nigerian economy expanded by 3.1% in The Nigerian naira weakened by 8.6% to 2022, according to National Bureau of Statistics The CBN hiked MPR four-consecutive time to ₦461.1/$1 in 2022, as high demand for dol
Slide 6: Financial and Operational Overview
Financial and Operational Overview Investor Presentation
Slide 7: Creating value for all shareholders
Creating value for all shareholders 1800.0 1600.0 1400.0 1200.0 1000.0 ₦B 800.0 600.0 400.0 200.0 0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenues EBITDA Cash flow from operations Capex Dividend paid 18% 12-year CAGR 15% 12-year CAGR 33% 12-year CAGR REVENUE EBITDA DIVIDEND D
Slide 8: FY 2022 – Strong Performance
FY 2022 – Strong Performance Solid results amidst a tough macro economic environment Financial Year ended 31st December 2022 2021 Change • Group revenues up 17.0%, largely due to better price realisation to offset rising costs Sales volumes* ‘000t ‘000t % Nigeria 17,841 18,612 (4.1) • Group EBITDA u
Slide 9: FY 2022 – Strong Performance (cont’d)
FY 2022 – Strong Performance (cont’d) Quarterly financial review Q4 QoQ QoQ analysis Q1 2022 Q2 2022 Q3 2022 Q4 2022 • The surge in prices of our input costs and significant change foreign exchange fluctuations from Q2 impacted our Sales volumes* ‘000t ‘000t ‘000t ‘000t % operations. Nigeria 4,834 4
Slide 10: Group Financial Overview
Group Financial Overview Income Statement FY 2022 ₦m FY 2021 ₦m % change Revenue 1,618,323 1,383,637 17.0% Cost of sales (662,890) (551,019) 20.3% Gross profit 955,433 832,618 14.8% Gross margin 59.0% 60.2% -1.1pp EBITDA 708,238 684,595 3.5% EBITDA margin 43.8% 49.5% -5.7pp EBIT 585,876 582,491 0.6%
Slide 11: Group financial overview (cont’d): Movement in debt
Group financial overview (cont’d) Movement in debt Cash ₦m Debt ₦m Net debt ₦m As at 31st December 2021 339,843 (564,940) (225,097) Cash from operations before 686,190 - 686,190 working capital changes Change in working capital (158,203) - (153,203) Income tax paid (150,766) - (150,766) Additions to
Slide 12: Group financial overview (cont’d): Balance Sheet
Group financial overview (cont’d) Balance Sheet As at 30/12/22 As at 31/12/21 ₦m ₦m Property, plant and equipment 1,527,293 1,472,859 Other non-current assets 58,676 40,996 Intangible Assets 6,225 5,122 Current Assets 739,618 533,199 Cash and Cash Equivalents 283,843 339,843 Total Assets 2,615,655 2
Slide 13: Nigeria – Record high EBITDA at ₦658.8B
Nigeria – Record high EBITDA at ₦658.8B 1,205 659 • Nigeria FY sales volume was down 4.1%, mainly due to 611 inflation and gas supply disruption. 993 • Revenues increased by 21.3% to ₦1,205.4B, supported by price increases to offset inflationary pressures 720 421 • Significant increase in distributi
Slide 14: Pan-Africa – Extended plant maintenance and repairs
Pan-Africa – Extended plant maintenance and repairs • Volumes down 8.1% to 10.0Mt due to plant maintenance and supply chain challenges • Revenues up 4.4% to ₦414.8B, reflecting price increase to align with accelerating inflationary trends • EBITDA of ₦64.9B with a margin of 15.6% • Extended plant ma
Slide 15: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 4.1Mt total • Estimated market sales of • Estimated 5.5Mt total market sales in 2022 705Kt in 2022 market sales in 2022 • Increase in consumption • Shutdown of Congo plant • DCP sales of 2.3Mt for 2022 owing to individual for 2 months due to is dow
Slide 16: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated over 6.3Mt total • Estimated total market • Estimated market sales of market sales in 2022 sales of 7.8Mt in 2022 831.8Kt in 2022 • DCP Ghana sold 264Kt of • DCP sold 1.1Mt of cement • Robust cement demand cement in 2022 in the period. owing to
Slide 17: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • GDP growth in South Africa • Estimated 7.1Mt total • Estimated 2.2Mt total remains low with a subdued market sales for 2022 market sales for FY 2022 outlook • DCP sold 2.0Mt for 2022, • DCP Zambia sold 654Kt of • Alternative fuel usage including 350.3Kt
Slide 18: Debt and Liquidity
Debt and Liquidity Robust Capital Structure Investor Presentation
Slide 19: Track record of accessing Debt Capital Market
Track record of accessing Debt Capital Market Bond Programme Commercial Paper Programme Bond – Key Terms Date Bond Tranches Pricing Maturity • In August 2021, we successfully established a new issued ₦150 billion Commercial Paper Programme ₦100B April 2020 - 12.5% 2025 A - ₦3.6B 11.25% 2024 • Issued
Slide 20: Successful share buy-back programme
Successful share buy-back programme Dangote Cement’s shareholders authorized the Company to undertake a fresh share buyback of up to 10% of its issued shares, during the Extraordinary General Meeting held on 13 December 2022. DangoteCEMENT DANGOTE Cement PLC’S shareSHARE buy-back summary BUY-BACK SU
Slide 21: Robust capital structure
Robust capital structure Strong balance sheet with available liquidity Diverse Capital Structure, ₦B Debt Maturity Profile, ₦B 700 24 400 350 600 263 325 300 500 250 400 200 348 Long term 150 152 300 Short term 100 100 408 200 50 370 4 11 43 0 17 100 NTM 2024 2025 2026 2027 0 Bank loan Bond* Related
Slide 22: Robust capital structure
Robust capital structure LENDING DIVERSIFICATION RATINGS • On 29 December 2022, Global Credit Ratings Facility Pricings Draw down Tenor long-term Issuer rating affirmed at AA+ (NG), with a stable outlook, Bond - April 2020 12.5% ₦100B 2025 while the short-term issuer rating at A1+(NG) was with a n
Slide 23: Sustainability
Sustainability Investor Presentation
Slide 24: Sustainability & Governance – The Dangote Way
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 2021 combined Annual Report and Sustainability Report with ESG data presented as per Global Reporting Initiative (GRI) ref
Slide 25: Institutional Pillar – Strong governance framework
Institutional Pillar – Strong governance framework Board of Directors (includes five Independent Directors) Diverse Board Aliko Dangote Ernest Ebi * Michel Puchercos (3) Devakumar Edwin Gender diversification: 27% female Board Olakunle Alake Emmanuel Ikazoboh * members Cherie Blair* Philip Mathew Ab
Slide 26: Institutional Pillar – Board changes and partnerships
Institutional Pillar – Board changes and partnerships Partnerships and Alliances Michel Arvind Pathak Puchercos Mr Michel Puchercos will be The Board has approved the retiring from the Board of appointment of Mr Arvind Pathak Directors and as the Group as Group Managing Director of Managing Director
Slide 27: Environmental Pillar – Focus on Alternative Fuel project
Environmental Pillar – Focus on Alternative Fuel project Circular Economy Model • DCP co-processed 157,000 tons of waste in 2022, a 76.4% increase over 2021 We have increased corporate focus and strategy by • AF Thermal Substitution Rate (TSR) increased to committing to the use of alternative fuel s
Slide 28: Environmental Pillar – CDP rating upgraded to B
Environmental Pillar – CDP rating upgraded to B B B 50 B- 2022 Sustained progress in • Submission to Carbon Disclosure Project (CDP) climate and environmental • Rated “B” by CDP on our carbon disclosure for 2021 sustainability 2022, second consecutive upgrade Management • One of the highest ratings
Slide 29: Social Pillar – Diversity and Integration
Social Pillar – Diversity and Integration International Women’s Day celebration Sustainability week Diversity and Integration Theme: “People, Planet and Profit –The Dangote Way” • Launch of Dangote ₦1,648 spent on CSR in 2022 Cement crèche to support workplace childcare. • To promote gender diversit
Slide 30: 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