Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — Q1 2021 Earnings Presentation
24 slides from Dangote Cement's earnings presentation, May 4, 2021
Slide 1: Q1 2021 results
Q1 2021 results UNAUDITED RESULTS FOR THE THREE MONTHS ENDED 31ST MARCH 2021 4th May 2021 @dangotecement www.dangotecement.com
Slide 2: Q1 2021: A Solid Quarter
Q1 2021: A Solid Quarter SDG FINANCIAL OPERATIONAL SUSTAINABILITY Alignment 20% female Board Revenue up 33.5% Group volume up 18.7% representation at ₦332.7B at 7.5Mt Diverse Board with 6 different nationalities Accorded the long-term Group EBITDA up 55.8% Nigeria volumes up 22.2% issuer rating of A
Slide 3: Macro-economic environment
Macro-economic environment • Sub-Saharan Africa (SSA) is experiencing the welcomed economic recovery on the back of the COVID-19 pandemic and commodity market decline in 2020 • According to the IMF, SSA is expected to growth by 3.4% in 2021 • The growth is supported by improved exports and commodity
Slide 4: Financial and Operational Overview
Financial and Operational Overview Investor Presentation
Slide 5: Q1 2021 – Strong Performance
Q1 2021 – Strong Performance Double digit volume growth in Nigeria and Pan-Africa Financial Three months ended 31st March 2021 2020 Change • Group revenues up 33.5%, supported by strong Sales volumes* ‘000t ‘000t % volume growth and lower discounts/rebates Nigeria 4,908 4,018 22.2% • Group EBITDA up
Slide 6: Group Financial Overview
Group Financial Overview Income Statement 2021 ₦m 2020 ₦m % change Revenue 332,651 249,182 33.5% Cost of sales (127,996) (104,325) 22.7% Gross profit 204,655 144,867 41.3% Gross margin 61.5% 58.2% 3.4pp EBITDA 177,971 114,223 55.8% EBITDA margin 53.5% 45.8% 7.7pp EBIT 151,744 91,779 65.3% EBIT margi
Slide 7: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Movement in debt Cash ₦m Debt ₦m Net debt ₦m As at 31st December 2020 145,835 (483,110) (337,275) Cash from operations before 169,268 - 169,268 working capital changes Change in working capital 15,163 - 15,163 Additions to fixed assets (20,782) - (20,782) Loan to re
Slide 8: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Balance Sheet As at 31/3/21 As at 31/12/20 ₦m ₦m Property, plant and equipment 1,377,311 1,390,687 Other non-current assets 73,523 77,072 Intangible Assets 4,637 4,554 Current Assets 517,898 404,303 Cash and Cash Equivalents 147,871 145,835 Total Assets 2,121,240 2,
Slide 9: Nigeria – Robust Cement Demand
Nigeria – Robust Cement Demand 4,908 158 • Strong sales volumes in Nigeria at 4.9Mt, with growth at 22.2%. 4,018 • Highest quarterly volumes sold from Nigerian operations 3,991 115 103 103 • H2 2020 continues with a maintained strong demand 3,969 from housing and infrastructure • Solid performance w
Slide 10: Pan-Africa – double digit volume growth
Pan-Africa – double digit volume growth • Volumes up at 12.8% to 2.6Mt EBITDA trend • Revenues up 33.1% to ₦93.0B, supported by higher 28.0% realised prices and volume growth 25.5% 24.0% • Strong EBITDA of ₦23.7B, up 61.9% 22.4% Record high • EBITDA margin of 25.5% 20.0% EBITDA margin 17.3% 16.9% •
Slide 11: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 940Kt total • Estimated market sales of • Estimated 1.9Mt total market sales for Q1 2021 197Kt for Q1 2021 market sales for Q1 2021 • Increase in consumption • DCP Congo sold 116Kt of • DCP sales of 533Kt for Q1 owing to individual cement, a 57% in
Slide 12: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated 1.8Mt total • Estimated 2.0Mt total • Estimated market sales of market sales for Q1 2021 market sales for Q1 2021 304Kt for Q1 2021 • DCP Ghana sold 147Kt of • DCP sales of 432Kt for Q1 • DCP sales of 94Kt for Q1 cement, an 18% increase 2021, up
Slide 13: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • High residential housing • Estimated 1.4Mt total • Estimated 549Kt total demand since H2 2020 market sales for Q1 2021 market sales for Q1 2021 • Sales at DCP South Africa • DCP sales of 313Kt for Q1 • DCP sales of 197Kt for Q1 increased by 6% year on 2
Slide 14: Debt and Liquidity
Debt and Liquidity Robust Capital Structure Investor Presentation
Slide 15: Track record of accessing Debt Capital Market
Track record of accessing Debt Capital Market Bond Programme Commercial Paper Programme In April 2020, we successfully completed the issuance of ₦100B Issued an aggregate NGN450 billion in Commercial Papers series 1 fixed rate 5-year bond at a rate of 12.5% since 2018. ₦B 155 Outstanding Commercial
Slide 16: Robust Capital Structure
Robust Capital Structure Strong balance sheet with available liquidity Diverse Capital Structure, ₦B Debt Maturity Profile, ₦B 500 350 300 400 32 65 2 250 156 46 300 200 98 32 Long term 150 200 Short term 100 166 208 249 100 50 100 42 0 0 2021 2022 2023 2024 2025 Bank loan Bond* Commercial Related P
Slide 17: Accorded the Highest Issuer Rating by GCR
Accorded the Highest Issuer Rating by GCR LENDING DIVERSIFICATION RATINGS • On 30 March 2021, Global Credit Ratings Facility Pricings Draw down Tenor upgraded the long term Issuer rating to AAA (NG), and affirmed the Bond 12.5% ₦100B 2025 short term issuer rating of A1+(NG), with outlook as Stable
Slide 18: Sustainability
Sustainability Investor Presentation
Slide 19: Sustainability & Governance
Sustainability & Governance The Dangote Way Our 7 Sustainability Pillars support our unique approach to creating a world-class enterprise. We released our 2019 combined Annual Report and Sustainability Report certified by the Global Reporting Initiative (GRI) and Externally Assured. CULTURAL ECONOM
Slide 20: Institutional Pillar – Strong Governance Framework
Institutional Pillar – Strong Governance Framework Board of Directors (includes five Independent Directors) Diverse Board Aliko Dangote (1) Ernest Ebi * Gender diversification: 20% female Michel Puchercos Devakumar Edwin Board members Olakunle Alake Emmanuel Ikazoboh * Cherie Blair* Arvind Pathak 6
Slide 21: Environmental Pillar – Focus on Alternative Fuel Project
Environmental Pillar – Focus on Alternative Fuel Project Alternative Fuel Project Commenced our Alternative Fuel Project to replace coal with biomass utilised in kiln for cement production Waste type Agro wastes, Waste lubricants, Tire derived • Submission to Carbon Disclosure Project fuels, Saw dus
Slide 22: Social Pillar - COVID-19 Interventions
Social Pillar - COVID-19 Interventions Completed Q1 CSR & donations Sustainability week • Rehabilitation of IT room at College King Akwa (DCP Cameroon). Summary of Sustainability Week Impact: 33 schools and • Awards of scholarships for back to school (DCP 1560 volunteers Cameroon). 7,633 hours 1
Slide 23: Financial Pillar – Creating value for shareholders
Financial Pillar – Creating value for shareholders 1200.0 1000.0 800.0 ₦B 600.0 400.0 200.0 0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Revenues EBITDA Cash flow from operations Capex Dividend paid 18% 10-year CAGR 15% 10-year CAGR 26% 10-year CAGR REVENUE EBITDA DIVIDEND Dangote Cement |
Slide 24: Temi Aduroja
For further information contact: Temi Aduroja Head of Investor Relations Dangote Cement Plc +44 207 399 3070 InvestorRelationsDangoteCement@dangote.com @dangotecement www.dangotecement.com