Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — 9M 2022 Earnings Presentation
30 slides from Dangote Cement's earnings presentation, Oct 31, 2022
Slide 1: 9M 2022 results
9M 2022 results UNAUDITED RESULTS FOR NINE MONTHS ENDED 30th SEPTEMBER 2022 31st October 2022 @dangotecement www.dangotecement.com
Slide 2: 9M 2022: Strong results, despite elevated inflation
9M 2022: Strong results, despite elevated inflation SDG FINANCIAL OPERATIONAL SUSTAINABILITY Alignment 27% female Board Group revenue up 15.2% Group volumes down 6.2% representation at ₦1,177.3B at 20.8Mt Diverse Board with 6 different nationalities Issuance of ₦116B Group EBITDA up 0.2% series 2 Bo
Slide 3: The year so far…
The year so far….. 200 160 120 80 January February March April June Buy-Back New female Board Member Okpella Plant Bond Issuance AGM Successful issuance of ₦116B Completed the 2nd tranche of the Ms. Halima Aliko-Dangote appointed Continued ramp up on our 3Mt Released our 2021 combined series 2 Bond.
Slide 4: SSA - Macro-economic environment
SSA - Macro-economic environment • Sub-Saharan Africa (SSA) is estimated to grow at 3.6% in 2022, slower than the 4.7% rebound in 2021. • The slower than expected growth forecast is premised on the huge supply shocks from the Russia-Ukraine crisis and inflation at levels not seen in decades. • SSA i
Slide 5: Nigeria - Macro-economic environment
Nigeria - Macro-economic environment Economic Growth Interest Rate Exchange Rate The Nigerian economy is expected to grow at 3.2% in 2022 according to the IMF. The Nigerian naira weakened by 5.2% to The CBN hiked MPR three-consecutive Growth in 2022 is driven by developments ₦432.9/$1 at the
Slide 6: Financial and Operational Overview
Financial and Operational Overview Investor Presentation
Slide 7: 9M 2022 – Strong Performance
9M 2022 – Strong Performance Good results amidst a tough macro economic environment Financial Nine months ended 30th September 2022 2021 Change • Group revenues up 15.2%, largely due to better price Sales volumes* ‘000t ‘000t % realisation to offset rising costs Nigeria 13,481 14,144 (4.7) • Group E
Slide 8: Group Financial Overview
Group Financial Overview Income Statement 9M 2022 ₦m 9M 2021 ₦m % change Revenue 1,177,256 1,022,186 15.2% Cost of sales (483,831) (403,388) 19.9% Gross profit 693,425 618,798 12.1% Gross margin 58.9% 60.5% -1.6pp EBITDA 515,879 514,791 0.2% EBITDA margin 43.8% 50.4% -6.5pp EBIT 433,623 440,324 -1.5
Slide 9: Group financial overview (cont’d)
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 500,123 - 500,123 working capital changes Change in working capital (95,396) - (95,396) Income tax paid (110,083) - (110,083) Additions to f
Slide 10: Group financial overview (cont’d)
Group financial overview (cont’d) Balance Sheet As at 30/09/22 As at 31/12/21 ₦m ₦m Property, plant and equipment 1,378,109 1,472,859 Other non-current assets 44,977 40,996 Intangible Assets 4,784 5,122 Current Assets 689,034 533,199 Cash and Cash Equivalents 216,834 339,843 Total Assets 2,333,042 2
Slide 11: Nigeria – Promotional activities improved market share
Nigeria – Promotional activities improved market share 891 480 • Nigeria 9M sales volume was down 4.7%, mainly due to inflation and gas supply disruption in Nigeria 459 730 • Revenues increased by 22.1% to ₦890.7B, supported by price increases to offset inflationary pressures 536 316 • Significant i
Slide 12: Pan-Africa – Extended plant maintenance and repairs
Pan-Africa – Extended plant maintenance and repairs • Volumes down 9.7% to 7.4Mt due to plant maintenance and supply chain challenges • Revenues down 3.1% to ₦288.5B due to lower sales volume • EBITDA of ₦47.8B with a margin of 16.6% • Extended plant maintenance and repairs activities in Congo and S
Slide 13: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 3.2Mt total • Estimated market sales of • Estimated 4.2Mt total market sales for 9M 2022 505Kt for 9M 2022 market sales for 9M 2022 • Increase in consumption • Shutdown of Congo plant • DCP sales of 1.7Mt for 9M owing to individual for 2 months due
Slide 14: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated over 5.0Mt total • Estimated 5.8Mt total • Estimated market sales of market sales for 9M 2022 market sales for 9M 2022 615.6Kt for 9M 2022 • DCP Ghana sold 201Kt of • DCP sold 745Kt of cement • Robust cement demand cement in 9M 2022 in 9M 2022.
Slide 15: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • GDP growth in South Africa • Estimated 5.1Mt total • Estimated 1.6Mt total remains low with a subdued market sales for 9M 2022 market sales for 9M 2022 outlook • DCP sales of 1.4Mt for 9M • Macro-factors are still • Builders’ holiday and 2022, including
Slide 16: Debt and Liquidity
Debt and Liquidity Robust Capital Structure Investor Presentation
Slide 17: 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 issued • Issued an aggregate of almost ₦ 500 billion in ₦100B April 2020 - 12.5% 2025 Commercial Papers since 2018 A - ₦3.6B 11.25% 2024 • In August 2021, we s
Slide 18: Successful share buy-back programme
Successful share buy-back programme In January 2022, DCP completed the second tranche of its buy-back programme. Buy-back – tranche II DangoteCEMENT DANGOTE Cement PLC’S shareSHARE buy-back summary BUY-BACK SUMMARY • DCP’s bought back 0.74% of its issued and fully paid- Share Capital Analysis up ord
Slide 19: Robust capital structure
Robust capital structure Strong balance sheet with available liquidity Diverse Capital Structure, ₦B Debt Maturity Profile, ₦B 700 23 400 350 600 302 300 263 500 250 400 200 369 Long term 150 149 300 Short term 100 398 200 382 50 100 4 10 0 5 25 100 NTM 2024 2025 2026 2027 0 Bank loan Bond* Related
Slide 20: Robust capital structure
Robust capital structure LENDING DIVERSIFICATION RATINGS • On 29 April 2022, Global Credit Ratings Facility Pricings Draw down Tenor long-term Issuer rating to AA+ (NG) and affirmed the short-term Bond - April 2020 12.5% ₦100B 2025 issuer rating of A1+(NG), with outlook as Stable. Bond – May 2021
Slide 21: Sustainability
Sustainability Investor Presentation
Slide 22: 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 23: 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 Devakumar Edwin Gender diversification: 27% female Board Olakunle Alake Emmanuel Ikazoboh * members Cherie Blair* Philip Mathew Abdu D
Slide 24: Environmental Pillar – Focus on Alternative Fuel project
Environmental Pillar – Focus on Alternative Fuel project Circular Economy Model • DCP co-processed 101,553 tons of waste in 9M 2022, a 77% increase over 9M 2021 We have increased corporate focus and strategy by • AF thermal substitution rate is estimated at 3.8% committing to the use of alternative
Slide 25: Environmental Pillar – AF usage across our operations
Environmental Pillar – AF usage across our operations Current AF usage Carbon pellet, Coffee husk, Agro waste saw dust, peanuts whole tires Cut tires PKS Cashew nut shell, Rice husk scrap tires, paper waste, saw dust, waste plastics Small tires, Waste development for future use saw dust, PP bags, fl
Slide 26: Environmental Pillar – CDP rating upgraded to B-
Environmental Pillar – CDP rating upgraded to B- B- B- 50 • Submission to Carbon Disclosure Project (CDP) C C 2021 Management • Rated “B-” by CDP on our carbon disclosure for band: 2021 2019 2020 Taking coordinated action on climate • One of the highest ratings in Sub-Saharan Africa Awareness band:
Slide 27: Financial Pillar – Creating value for shareholders
Financial Pillar – Creating value for shareholders 1600.0 1400.0 Completed the 1200.0 second tranche of the buy-back programme. 1000.0 ₦B 800.0 600.0 400.0 200.0 0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Revenues EBITDA Cash flow from operations Capex Dividend paid 19% 11-year CAGR
Slide 28: Financial Pillar – XBRL reporting
Financial Pillar – XBRL reporting First Nigerian listed company to report its financial results using eXtensible Business Reporting Language (XBRL) format with the IFRS taxonomy “We believe that adopting XBRL reporting will strongly benefit Dangote Cement’s existing and potential investors. It repre
Slide 29: Social Pillar – Diversity and Integration
Social Pillar – Diversity and Integration International Women’s Day celebration Sustainability week Key initiatives included ‘Waste to Wealth’ campaigns, tree planting, skills & capacity building, donations to less privileged, etc. All initiatives focused on advancing six core SDGs: 1,3,4,5,6 &
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