Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — FY2012 Earnings Presentation
17 slides from Dangote Cement's earnings presentation, April 2013
Slide 1: Audited Results for the Year ending 31 December 2012
Audited Results for the Year ending 31 December 2012 April 2013
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: FY 2012 highlights
FY 2012 highlights Dangote Cement sales 2011-2012 (kt) Operational 11,000 Locally produced – 11mt new capacity brought onstream, imports ended 10,000 cement +50% Gboko 9,000 – Cement sales up 19.9% to nearly 10.4mt 8,000 – Strong increase despite flooding, sand shortage Imports 7,000 Ibese – 10.2 mi
Slide 4: 2012 market developments
2012 market developments • New capacity brings self sufficiency – 11mt at Ibese and Obajana – Ramping up throughout 2012 Total Nigerian Cement sales 2004-2012 (mt) Manufactured Imported • Gas distribution problems impact margins 20 18 – Upgrade completed but some problems remain 1.9 16 10.2% CAGR 5.
Slide 5: Total Nigerian market volume
Total Nigerian market volume FY 2013 FY 2012 FY 2011 FY 2010 2,000 Strong start in 2013 1,900 1,800 1,700 Xmas 000 tonnes Flooding ‘Monday’ 1,600 effect 1,500 1,400 1,300 1,200 1,100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Dangote Cement estimates 5
Slide 6: Outperforming the market
Outperforming the market Dangote Cement sales Total Nigerian cement market 70% 60% 50% 40% 30% 20% 10% 0% -10% -20% Source: Dangote Cement estimates 6
Slide 7: Outperforming the market
Outperforming the market Real GDP Building & Construction Real Estate Cement consumption Dangote Cement volumes Linear (Dangote Cement volumes) 60% 51.6% 50% 40% 27.9% 30% 20% 18.1% 14.4% 8.8% 9.5% 10.5% 10% -3.9% 0% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 -10% Sources: Natio
Slide 8: Operational performance
Operational performance • Obajana – 5mt new capacity added in Q1 2012 Cement sales by plant in 2012 (kt) – Cement sales up 12.8% to 5.7mt – Higher fuel cost per tonne as gas pressure fell Obajana Ibese Gboko – Covered sales to Gboko catchment in December 3,000 2,500 • Ibese – 6mt new capacity servin
Slide 9: Strong growth in 2012
Strong growth in 2012 Consolidated Group accounts Year ending December (₦bn) 2011 2012 % change Comments Revenue 241.5 298.5 23.6% Includes first-time contribution of ₦12.2bn from Ghana. Cost of sales -97.7 -118.3 21.1% Gross profit 143.7 177.7 25.4% Gross margin 59.5% 60.4% 0.9pp EBITDA 133.8 174.1
Slide 10: Impact of gas on margins
Impact of gas on margins Average monthly gas utilisation in 2012 % • Group achieved strong margins despite Ibese Obajana sub-optimal gas mix for most of 2012 100% 90% 80% • Nationwide gas distribution issues being 70% addressed by infrastructure upgrade 60% 50% • But regional problems still persist
Slide 11: Strong balance sheet
Strong balance sheet Year ending December (₦bn) 2011 2012 Comments Non-current assets 459.9 549.8 Current assets 66.6 123.9 Total assets 526.5 673.7 Equity 281.8 412.8 Non-current liabilities 120.3 117.6 Current liabilities 115.8 136.0 Total equity & liabilities 526.5 673.7 Cash 22.8 44.4 Short-term
Slide 12: Update on Africa
Update on Africa • Senegal – Factory and power plant complete – Land dispute now before Supreme Court – Plant shuttered by order of local authority pending resolution – After resolution, plant will take around 40 days to commission – Cement production possible with imported clinker • South Africa –
Slide 13: Update on Africa
Update on Africa Capacity Expected Country Comments (mt) production Cameroon 3,000t/day H1 2014 Construction of grinding plant in progress. Rep. Congo 1.5 Late 2015 Tendering underway. Ethiopia 2.5 Early 2015 Building work on schedule. No major problems. Gabon TBC TBC Change of scope to grinding onl
Slide 14: Export strategy progressing
Export strategy progressing • Ghana – Continue to import from Far East on existing contract – Successfully tested logistics and product from Ibese, Nigeria – Expecting to improve volume by taking market share in a growing market – Increasing packing capacity and bulk loading facilities – Support in
Slide 15: Summary
Summary • New capacity extends market leadership – Expect to increase share of volumes in 2013 – Imports now unnecessary and damaging to local producers • Good performance despite unforeseen challenges of flooding and gas • Steady progress in Africa with projects coming onstream from 2013/14 • Stron
Slide 16: Investor relations
Investor relations Equity research is provided by the following analysts: Broker Analyst Location ARM Research Oyinda Olanrewaju Lagos Chapel Hill Denham Eniola Taiwo Lagos CSL FCMB Guy Czartoryski London/Lagos Exotix Andy Gboka London FBN Capital Tunde Abidoye Lagos Imara Securities Belvas Otieno H
Slide 17: Appendix
Appendix • Total production capacity could be about 55 million tonnes by the end Growth in cement consumption of 2015, based on currently visible Capacity at 100% 8% 10% 12% 14% projects, but actual production will 80 depend on speed of ramp-up in 14/15/16 70 60 Export potential • Even assuming just