Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — H1 2024 Earnings Presentation
29 slides from Dangote Cement's earnings presentation, Jul 26, 2024
Slide 1: H1 2024 results
H1 2024 results UNAUDITED RESULTS FOR SIX MONTHS ENDED 30th JUNE 2024 26th July 2024 @dangotecement www.dangotecement.com
Slide 2: A Global Leader, Proudly African
A Global Leader, Proudly African Dangote Cement is sub-Saharan Africa’s largest and leading cement company, with operations in 10 African countries. We are resolute in transforming Africa, while creating sustainable value for all our stakeholders. 8 1 2 10 9 Integrated 7 52Mta Grinding 6 Our vision
Slide 3: SSA – Macroeconomic environment
6 SSA – Macroeconomic environment • Sub-Saharan Africa (SSA) is projected to grow at a faster pace of 3.8% in5 2024, Average YoY currency depreciation to the dollar in H1 2024 up from the growth of 3.4% in 2023. However, the region is still contending with challenges including escalating inflation,
Slide 4: Domestic macroeconomic environment
Domestic macroeconomic environment Real GDP Growth (%) Interest Rate (%) Movement in Oil Prices ($) 120 35 3.4% MPR 1-yr Tbills Interbank 3.1% 3.0% 2.7% 3.3% 100 89 2.3% 25 1.9% 80 0.8% 15 60 5 Feb-23 Feb-24 Dec-22 Jan-23 Jun-23 Sep-23 Nov-23 Dec-23 Jan-24 Jun-24 Aug-23 Mar-23 Oct-23 Apr-23 Mar-24 J
Slide 5: Impressive performance amidst headwinds
Impressive performance amidst headwinds FINANCIAL OPERATIONAL SUSTAINABILITY SDG Alignment 28% female Board Group revenue up 85.1% Group volumes up 3.8% to representation to ₦1,760.1B 13.9Mt Diverse Board with 7 different nationalities Published 2023 combined Annual and Sustainability Group EBITDA u
Slide 6: H1 2024: Impressive first half performance
H1 2024: Impressive first half performance Group EBITDA up 50.3% to ₦666.2B Six months ended June H1 2024 H1 2023 Change Financial • Group revenues up 85.1%, due to double-digit growth in Nigeria and Sales volumes* ‘000t ‘000t % improved pricing and sales performance from pan-Africa. Nigeria volumes
Slide 7: Group Financial Overview
Group Financial Overview Rewarding shareholding Income Statement H1 2024 ₦m H1 2023 ₦m % change Dividend paid (N’B) Revenue 1,760,055 950,832 85.1% 600 Cost of sales (833,273) (383,088) 117.5% 503 500 Declared dividend of Gross profit 926,782 567,744 63.2% ₦30.00/share - up 50% Gross margin 52.7% 59
Slide 8: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Balance Sheet As at 30/6/24 As at 31/12/23 ₦m ₦m Property, plant and equipment 3,274,512 2,383,528 Other non-current assets 179,600 133,827 Intangible Assets 19,266 12,356 Current Assets 1,311,302 961,917 Cash and Cash Equivalents 590,481 447,097 Total Assets 5,375,
Slide 9: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Focused on strong cash generation • Prudent capital allocation on dividend, income tax and capex 1800 • Cash of ₦471.8B was generated from operations for H1 2024 1600 • ₦63.1B was spent on capex to fund the construction of new plants in West African Prudent capital
Slide 10: Nigeria – Uptick in economic activities drive volume rebound
Nigeria – Uptick in economic activities drive volume rebound H1 2024 average cement price across our operations, $/t • Rebound in volumes due to increased economic activities and a resumption of 145 construction projects in comparison to last year Average cement price • Nigeria revenues up 60.3% to
Slide 11: Pan-Africa – Strong performance across key line items
Pan-Africa – Strong performance across key line items EBITDA ₦m • Volumes up 1.2% to 5.5Mt, driven by healthy volume growth from Ghana, Congo and Zambia 220.4 206.0 • Pan-African volume accounts for 39.4% of Group volume, underscoring benefits from our diversification strategy 156.0 • Revenues up 13
Slide 12: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 2.1Mt total market • Estimated market sales of • Estimated 3.9Mt total market sales in H1 2024 350.7Kt in H1 2024 sales in H1 2024 • DCP Cameroon was up 1.4% • Clinker exports to Cameroon • DCP sales of 1.2Mt in H1 to 710Kt in H1 2024 commenced in
Slide 13: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated 4.0Mt total • Estimated total market sales • Estimated market sales of market sales in H1 2024 of 4.8Mt in H1 2024. 223.7Kt in H1 2024 • DCP Ghana sold 255.2Kt of • Election uncertainties • Pockets of stock shortages cement in H1 2024, up stalle
Slide 14: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • Economic activities in South • Estimated 3.0Mt total market • Estimated 942Kt total market Africa were subdued in the first sales for H1 2024 sales for H1 2024 quarter, due to a slowdown in construction activities in the • DCP sold 765.8Kt in H1 2024, •
Slide 15: Debt and Liquidity
Debt and Liquidity Robust Capital Structure Investor Presentation
Slide 16: Track record of accessing Debt Capital Market
Track record of accessing Debt Capital Market Bond programme Commercial paper programme 350 300 250 Renewal of ₦300B Bond programme 300 198 awaiting approval 200 Undrawn balance of by the SEC 150 ₦102B on programme 100 50 102 0 Commercial paper Draw down Undrawn balance Drawn Tranches programme Prog
Slide 17: Robust debt profile
Robust debt profile Sustained minimum leverage ratios to support liquidity Facility Pricings Draw down Tenor Ratios H1 2024 Bond - April 2020* 12.5% ₦100B 2025 Current ratio 0.7x Bond – May 2021 (A,B&C)* 11.25%-13.5% ₦46.3B 2025-2028 Debt/capital 41.0% Bond – April 2022 (A,B&C)* 11.85%-13.0% ₦116B 2
Slide 18: Strategy (Exports)
Strategy (Exports) Investor Presentation
Slide 19: Cementing Africa's Economic Self-Sufficiency
Cementing Africa's Economic Self-Sufficiency We make the regional and continental free trade agreements a reality Our vision is for Africa to be cement and clinker self-sufficient. We fulfilled this goal in our home country, Nigeria, which has gone from being one of the largest importers of cement,
Slide 20: Cementing Africa's Economic Self-Sufficiency
Cementing Africa's Economic Self-Sufficiency We make the regional and continental free trade agreements a reality Our vision is for Africa to be cement and clinker self-sufficient. We fulfilled this goal in our home country, Nigeria, which has gone from being one of the largest importers of cement,
Slide 21: Benefits of Export Strategy
Benefits of Export Strategy HIGHER CAPACITY UTILISATION IN OUR OPERATIONS: Increased production due 01 to exports will increase capacity utilisation in our operations and in turn reduce fixed cost per tonne. Additional earnings for the Group. CONTINENTAL AND REGIONAL BENEFITS - FREE TRADE AREA BENEF
Slide 22: Focus on West and Central Africa Expansion Strategy
Focus on West and Central Africa Expansion Strategy… …while optimising our Eastern African assets Existing operations Opportunities Ghana 0.45Mta – completed Senegal Cote d’Ivoire 1.5Mta – expected in 2024 Nigeria Sierra Leone Ethiopia Cameroon Congo Cote d’Ivoire 1.5Mta (phase 2) – 2024 Tanzania It
Slide 23: Sustainability
Sustainability Investor Presentation
Slide 24: 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 2023 combined Annual Report and Sustainability Report with ESG data presented as per Global Reporting Initiative (GRI) ref
Slide 25: ESG is at the Heart of Our Operation (H1 2024 highlights)
ESG is at the Heart of Our Operation (H1 2024 highlights) Environmental Social Governance • Reviewed and implemented new governance • Alternative Fuel Thermal Substitution Rate (TSR) at • N2,343 million spent on social intervention activities policies in line with best practices 10.5% in H1 2024 ver
Slide 26: Strong Board and Governance Framework
Strong Board and Governance Framework Board of Directors (includes five Independent Directors) Diverse Board • 28% Female Board Members (gender diversity) Aliko Dangote Devakumar Edwin Arvind Pathak Emmanuel Ikazoboh * • 7 Nationalities Olakunle Alake Viswanathan Shankar Cherie Blair, CBE, KC* Dorot
Slide 27: Social Performance
Social Performance Customer Service Week Sustainability Week Theme: “Sustainable Production and Consumption – Dangote Cement Long Service Award and Graduate Trainee Graduation The Dangote Way” ₦2.34B spent on CSR in H1 2024, up by 185% Dangote Cement sustainable living fair Investor Presentation
Slide 28: Outstanding Financial Performance
Outstanding Financial Performance Group Revenue (N’B) Group EBITDA (N’B) up 36.4% 2023 Group revenue up 36.4% at at 2400 2,208 1000 886 ₦2,208.1B 2000 900 800 1600 700 600 1200 500 400 800 2023 Group EBITDA up 300 400 241 200 134.0 25.1% at 100 ₦886.1B 0 0 2011 2012 2013 2014 2015 2016 2017 2018 201
Slide 29: For further information contact
For further information contact: Temilade Aduroja Head of Investor Relations Dangote Cement Plc ir@dangote.com InvestorRelationsDangoteCement@dangote.com @dangotecement www.dangotecement.com