Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — 9M 2019 Earnings Presentation
16 slides from Dangote Cement's earnings presentation, Oct 30, 2019
Slide 1: Unaudited Results for the Nine Months to 30 September 2019
Wa RASA eS SDAA C' Building Prosperity in Africa UNAUDITED RESULTS FOR THE NINE MONTHS TO 30" SEPTEMBER 2019 30" OCTOBER 2019 @dangotecement y vwwnn-dangotecementcom |[__] DANGOTE == CEMENT
Slide 2: Progress in 2019
Progress in 2019 SR DANGOTE CEMENT Q1 2019 Q2 2019 Q3 2019 | 9M2019] 9M 2018 Change ‘000 ‘000 ‘000 ‘000 ‘000 Sales volumes tonnes tonnes tonnes tonnes tonnes % 3,991 3,604 3,221 10,816 10,756 0.6% 2,347 2,340. 2,457 7,144 7,026 1.7% - - - - (13) Revenues m im m bail m % Nigeria 169,885 158,402 139,5
Slide 3: 9M 2019 Performance
9M 2019 Performance FINANCIAL * Group revenue down 0.8% * Group EBITDA down 10.1% — 44.6% margin * Earnings per share down 1.6% to $9.10 OPERATIONAL * Group volumes up 1.1% to 18.0Mt * Nigeria volumes up 0.6% — Q3 promotion drove Nigeria sales against new competitor capacity * Pan-African volumes up
Slide 4: Group Financial Overview
Group Financial Overview Nine months to 2019 2018 30th September Nm Nm Change Revenue 679,791 685,290 (0.8%) Cost of sales (290,015) (287,682) 0.8% Gross profit 389,776 397,608 (2.0%) Gross margin 57.3% 58.0% (0.7pp) EBITDA 303,223 337,297 (10.1%) EBITDA margin 44.6% 49.2% (4.6pp) EBIT 231,482 266,8
Slide 5: 9M EBITDA Development
9M EBITDA Development ott cement ™@ Increase ™ Decrease ® Total 350,000 441,275 -N3,525 ————— 303,223 +#300,000 “Ni0,461 275,934 250,000 $200,000 #150,000 #4100,000 $50,000 40 Nigeria Profitable Pan-African Non-profitable Pan-African Central costs Total 8 millions * Nigeria's continued discounting,
Slide 6: Group Financial Overview
Group Financial Overview «..::: SR DANGOTE CEMENT Cash Debt Net debt 8m Am Rm As at 1" January 2019 166,896 (335,301) (168,405) a nl -[ seas Changes in working capital (8,070) (8,070) Income tax paid (4,884) (4,884) Additions to fixed assets (110,957) (110,957) Other investing activities (95) (95) a
Slide 7: Group Financial Overview
Group Financial Overview «..::: As at 30/9/19 As at 31/12/18 Nm sm Property, plant and equipment 1,190,696 1,171,864 Other non-current assets 92,916 87,792 Intangible Assets 5,383 5,969 Current Assets 263,335 261,942 Cash and Cash Equivalents 91,827 166,896 Total Assets 1,644,157 1,694,463 Non-curre
Slide 8: • • 5,000 4,500 • ₦ 4,000 • 3,500 3,000 2,500 2,000 1,500 1,000
• • 5,000 4,500 • ₦ 4,000 • 3,500 3,000 2,500 2,000 1,500 1,000 500 ₦ 0 ₦ Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 2019
Slide 9: Revenue per tonne
₦ 50,000 5,000 ₦ 45,000 ₦ 40,000 ₦43,816 ₦44,311 4,500 ₦45,070 ₦44,960 ₦44,023 ₦43,187 ₦42,567 ₦42,947 ₦ 35,000 ₦40,412 ₦ 43,952 ₦ 43,337 ₦ 30,000 4,000 ₦ 25,000 ₦ 26,622 ₦ 28,972 ₦ 20,000 ₦ 29,630 ₦26,952 ₦ 25,903 ₦23,389 3,500 ₦ 29,176 ₦ 29,059 ₦ 29,039 ₦ 26,975 ₦ 15,000 ₦ 26,175 ₦ 10,000 3,000 ₦
Slide 10: Nigeria Cash Cost Analysis
Nigeria Cash Cost Analysis aed Kiln Fuel Production Wages & Salaries Maintenance Manpower DANGOTE CEMENT Maintenance pam Supplies O&M Technical _ Contract Maintenance scold 20) Yo Mine Costs Cash cost was approximately $34.1/tonne in 9M 2019 (Excluding central costs) 65% of cash costs are US Dollar
Slide 11: Pan-Africa Performance
Pan-Africa Performance * Sales volumes up 1.7% to 7.1Mt * Revenues down 0.5% to 8213.2B * EBITDA down 3.5% to 837.8B * Good 9M 2019 performances — Tanzania volumes up 106% — Sierra Leone volumes up 108% — Ethiopia steady despite electricity shortage in Q2 — Senegal sales more than 100% rated capacit
Slide 12: Country Updates: Cameroon, Congo, Ethiopia
Country Updates Cameroon Dangote Cement Cameroon sold 866Kt of cement, a decrease on the 920Kt sold in 9M 2018 Decrease in sales attributed to security challenges in the North West and South West regions, as well as1.6Mta new competitor capacity 173kKt sold in the first nine months of 2019, up nearl
Slide 13: Country Updates: Ghana, Senegal, Sierra Leone
Country Updates Dangote Cement Ghana sold approximately 388Kt of cement in 9M 2019, down 36.4% compared to 9M 2018 owing to lower supplies of cement Estimated market share of 10% Increased government infrastructure spending ahead of 2020 elections Aiming to increase volumes with a high focus on turn
Slide 14: Country Updates: South Africa, Tanzania, Zambia
South Africa Tanzania Zambia
Slide 15: CDP Disclosure
CDP Disclosure * First submission to Carbon Disclosure Project (CDP) filed at end of July 2019, covering 2018 emissions data * Consolidated emission monitoring and internal reporting methodology based on GCCA guidelines adopted in November 2018 First Climate Change Risk Assessment workshop carried o
Slide 16: Investor Relations Contacts
MW RATS ANE iSVR ARA, & Investor relations Contacts For further information contact: ° Carl Franklin Head of Investor Relations e Dangote Cement Plc +44 207 399 3070 ° carl.franklin@dangote.com e @dangotecement y vwwnn-dangotecementcom |[__] DANGOTE = CEMENT