Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — Q1 2023 Earnings Presentation
26 slides from Dangote Cement's earnings presentation, May 2, 2023
Slide 1: Q1 2023 results
Q1 2023 results UNAUDITED RESULTS FOR THREE MONTHS ENDED 31st MARCH 2023 2nd May 2023 @dangotecement www.dangotecement.com
Slide 2: Q1 2023: Increase in Profit After Tax to ₦109.5B
Q1 2023: Increase in Profit After Tax to ₦109.5B FINANCIAL OPERATIONAL SUSTAINABILITY Alignment SDG 29% female Board Group PAT up 3.4% Strong recovery and representation operational delivery in to ₦109.5B pan-Africa Diverse Board with 6 different nationalities EPS up 4.2% to On track to commission I
Slide 3: The year so far…
The year so far….. February March March April Itori Cement Plant 2nd Buy-Back Progamme Commercial Paper AGM Signed MoU for planned 6Mta Itori Received regulatory approval for Issued Commercial Papers for Released our 2022 combined Cement Plant DCPs second share buyback working capital purpose Annual
Slide 4: SSA - Macro-economic environment
SSA - Macro-economic environment • Sub-Saharan Africa (SSA) is estimated to grow at a slower pace of 3.6% in 2023 from 3.9% in 2022. This is due to the challenges of accelerating commodity prices, fiscal imbalance and a pile up of public debt, which the region is still confronted with. • More worris
Slide 5: Nigeria - Macro-economic environment
Nigeria - Macro-economic environment Economic Growth Interest Rate Exchange Rate ▪ The Nigerian economy is projected to grow at ▪ The CBN hiked MPR for sixth-consecutive time a slower pace of 3.2% in 2023 from a growth of over the last 12 months to 18%, in a sustained ▪ The Nigerian naira weakened s
Slide 6: Financial and Operational Overview
Financial and Operational Overview Investor Presentation
Slide 7: Q1 2023 – Strong Performance
Q1 2023 – Strong Performance Solid pan-African growth, reinforcing our Africa strategy Financial Year ended 31st March Q1 2023 Q1 2022 Change • Group revenues down 1.6%, due to decline in sales from Sales volumes* ‘000t ‘000t % our Nigerian operation Total 6,271 7,248 (13.5) • Group EBITDA down 12.0
Slide 8: Group Financial Overview
Group Financial Overview Income Statement Q1 2023 ₦m Q1 2022 ₦m % change Revenue 406,722 413,181 (1.6%) Cost of sales (163,671) (154,108) 6.2% Gross profit 243,051 259,073 (6.2%) Gross margin 59.8% 62.7% (2.9pp) EBITDA 185,708 211,021 (12.0%) EBITDA margin 45.7% 51.1% (5.4pp) EBIT 156,867 182,803 (1
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 2022 283,843 (706,734) (422,891) Cash from operations before 183,136 - 183,136 working capital changes Change in working capital (68,470) - (68,470) Income tax paid (1,406) - (1,406) Additions to fixed
Slide 10: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Balance Sheet As at 31/3/23 As at 31/12/22 ₦m ₦m Property, plant and equipment 1,517,187 1,527,293 Other non-current assets 56,835 58,676 Intangible Assets 6,208 6,225 Current Assets 863,246 739,618 Cash and Cash Equivalents 255,194 283,843 Total Assets 2,698,670 2,
Slide 11: Election uncertainties weigh on Nigeria operations
Election uncertainties weigh on Nigeria operations 322 197 • Nigeria Q1 2023 volume was down, due to election 280 159 uncertainties and the currency crunch in the quarter 240 158 • This put pressure on volumes amidst the elevated inflationary environment • Revenues decreased by 12.9% to ₦280.3B, ref
Slide 12: Pan-Africa – Record EBITDA up 71.0%
Pan-Africa – Record EBITDA up 71.0% • Volumes up 8.9% to 2.6Mt driven largely by improved cement demand from Senegal, Cameroon, Congo and Zambia Strong pan-African EBITDA, ₦B 36.0 31.2 • Revenues up 38.5% to ₦126.4B, on improved sales 31.0 • Record double-digit growth in EBITDA to ₦31.2B with a marg
Slide 13: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 1.1Mt total • Estimated market sales of • Estimated 1.5Mt total market sales in Q1 2023 190Kt in Q1 2023 market sales in Q1 2023 • Ongoing constructions of • Return to full operation of • DCP sales of 555Kt in Q1 roads and bridges and an Congo plan
Slide 14: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated over 1.8Mt total • Estimated total market • Estimated market sales of market sales in Q1 2023 sales of 2.5Mt in Q1 2023 207Kt in Q1 2023 • DCP Ghana sold 83Kt of • DCP sold 457Kt of cement • Volume is limited by supply cement in Q1 2023 in the p
Slide 15: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • GDP growth in South Africa • Estimated 1.7Mt total • Estimated 487Kt total remains low with a subdued market sales for Q1 2023 market sales for Q1 2023 outlook • DCP sold 445Kt for Q1 • DCP Zambia sold 136Kt of • Alternative fuel usage 2023, down by 12.
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 ₦300B Multi-Instrument Programme enabling DCP to issue Established a ₦150 billion Commercial Paper Programme in Green Bonds and Sukuk 2021 Outstanding Bonds Outstanding Commercial Paper Tranches Series Value (₦bn
Slide 18: 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 19: Sustainability
Sustainability Investor Presentation
Slide 20: 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 2022 combined Annual Report and Sustainability Report with ESG data presented as per Global Reporting Initiative (GRI) ref
Slide 21: Institutional Pillar – Strong governance framework
Institutional Pillar – Strong governance framework Board of Directors (includes five Independent Directors) Diverse Board Aliko Dangote Ernest Ebi * Arvind Pathak Devakumar Edwin Gender diversification: 29% female Board Olakunle Alake Emmanuel Ikazoboh * members Cherie Blair* Philip Mathew Abdu Dant
Slide 22: Environmental Pillar – Focus on Alternative Fuel project
Environmental Pillar – Focus on Alternative Fuel project Circular Economy Model 67,006 tonnes of biomass co-processed in DCP kilns We have increased corporate focus and strategy by AF Thermal Substitution Rate (TSR) increased to committing to the use of alternative fuel sources in 8.7% in Q1 2023 fr
Slide 23: Environmental Pillar – CDP rating upgraded to B
Environmental Pillar – CDP rating upgraded to B B B 50 B- 2022 Sustained progress in climate and • Submission to Carbon Disclosure Project (CDP) environmental sustainability • Rated “B” by CDP on our carbon disclosure for 2021 disclosure C 2022, second consecutive upgrade Management band: • One of t
Slide 24: 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 ₦468 million spent on CSR in Q1 2023 up 50% YoY Cement crèche to support workplace childcare. • To pro
Slide 25: 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 26: For further information contact
For further information contact: Temi Aduroja Head of Investor Relations Dangote Cement Plc +234 915 469 1597 InvestorRelationsDangoteCement@dangote.com @dangotecement www.dangotecement.com