Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — FY2015 Earnings Presentation
15 slides from Dangote Cement's earnings presentation, Mar 1, 2016
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 31st December 2015 1st March 2016
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 for 2015
Highlights for 2015 Financial results Regional revenues (₦bn) • Revenue up 25.6% to ₦491.7B on success across Africa Year ended 2015 2014 Change 31st December • EBITDA up 17.5% to ₦262.4B at 53.4% margin Nigeria 389.2 371.5 4.8% • All pan-African operations profitable at EBITDA level West & Central
Slide 4: Key achievements
Key achievements Improved Reduced financial strength business risk Revenues increased Expansion model proven, successful Profits increased market entries diversify and increasing revenues and profits Positive EBITDA from all operations Pricing risk proactively managed in Cash flow improv
Slide 5: Financial Overview
Financial Overview Income Statement Year ended 31st December 2015 2014 ₦B ₦B % change Comments Revenue 491.7 391.6 25.6% Strong contributions from new factories Cost of sales (202.2) (143.1) 41.3% Improved fuel mix in Nigeria Gross profit 289.6 248.6 16.5% Gross margin 58.9% 63.5% Lower price in Nig
Slide 6: 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 2015 20.6 (242.6) (222.0) Cash generated from operations before 275.4 - 275.4 changes in working capital Changes in working capital 26.4 - 26.4 Income tax paid (2.2) - (2.2) Capital expenditure (251.9) - (
Slide 7: Financial Overview (cont’d): Balance sheet
Financial Overview (cont’d) Balance sheet As at As at 31/12/15 31/12/14 ₦B ₦B Comments Property, plant and equipment 917.2 747.8 Other non-current assets 25.1 96.1 Intangible assets 2.6 3.7 Current assets 125.2 116.6 Cash and cash equivalents 40.8 20.6 Total Assets 1,110.9 984.7 Non-current liabilit
Slide 8: Improved debt management
Improved debt management • Strong cash generation enables reduction of net debt by ₦17.8B to ₦204.2B • Large proportion of short-term debt refinanced to 2 years • Improved governance structure obliged arm’s length treatment of parent company loan, with increase in interest rate from 10% to 14% • Of
Slide 9: Nigerian market returns to growth
Nigerian market returns to growth 25 20 9.9% CAGR 1996-2015 15 10 5 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Manufactured Imported • Market ended 2.5% up in 2015 despite currency, oil price, political/policy uncertainties • Price reduction
Slide 10: Nigerian Operations 2015
Nigerian Operations 2015 Nigeria performance • Dangote Cement volumes up 3.2% to 13.3Mt Year ended 2015 2014 Change 31st December • Price reduction drives record Q4 sales of nearly 4Mt Volumes sold (kt) 13,290 12,873 3.2% • Market share 62% across year, but 68% in December • Imports rapidly falling
Slide 11: West & Central Africa 2015
West & Central Africa 2015 West & Central Africa performance • Excellent performances in all countries drives Year ended 2015 2014 Change 31st December 7x increase in cement volumes Volumes sold (kt) 2,137 309 592% • Senegal disrupts market with superior product quality, gains 28% share in first yea
Slide 12: South & East Africa highlights
South & East Africa highlights South & East Africa performance • Strong increase in regional volumes as new factories Year ended 2015 2014 Change open in Ethiopia, Zambia 31st December • South Africa builds on previous year’s success, very high Volumes sold (kt) 3,472 789 340% utilisation rates acro
Slide 13: Expanding and diversifying
Expanding and diversifying End 2015 End 2019* Type Nigeria Mta Mta Expected capacity additions, 2016-2019* (Mta) Obajana 13.3 13.3 Integrated Ibese 12.0 12.0 Integrated 80 Gboko 4.0 4.0 Integrated Itori - 6.0 Integrated Okpella - 3.0 Integrated 70 Total Nigeria 29.3 38.3 West & Central Africa Mta Mt
Slide 14: Outlook for 2016
Outlook for 2016 • Nigerian market clearly stimulated by price cut Jan-Feb sales growth 2015/16 (‘000 tonnes) • Strong start to 2016, volumes up 75% for first two months 2,500 • Sourcing foreign currency remains challenging +72% +78% • Around 55% of opex exposed to FX but most import needs 2,000 are
Slide 15: Investor Relations
Investor Relations For further information contact: Carl Franklin Ayeesha Aliyu Chief Investor Relations Officer Investor Relations Dangote Cement plc Lagos +44 207 399 3070 +234 1 448 0815 +44-7713 634 834 carl.franklin@dangote.com Ayeesha.aliyu@dangote.com www.dangotecement.com @DangoteCement 15