Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — H1 2022 Earnings Presentation
29 slides from Dangote Cement's earnings presentation, Aug 3, 2022
Slide 1: H1 2022 results
H1 2022 results UNAUDITED RESULTS FOR SIX MONTHS ENDED 30th JUNE 2022 3rd August 2022 @dangotecement www.dangotecement.com
Slide 2: H1 2022: A solid first half, despite elevated inflation
H1 2022: A solid first half, despite elevated inflation SDG FINANCIAL OPERATIONAL SUSTAINABILITY Alignment 27% female Board Group revenue up 17.0% Group volumes down 7.0% representation at ₦808.0B at 14.2Mt Diverse Board with 6 different nationalities Issuance of ₦116B Group EBITDA up 6.3% series 2
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: 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, the global security challenges will contribute to a significant slowdown in global growth in 2022. •
Slide 5: Financial and Operational Overview
Financial and Operational Overview Investor Presentation
Slide 6: H1 2022 – Strong Performance
H1 2022 – Strong Performance Strong results amidst a tough macro economic environment Financial Six months ended 30th June 2022 2021 Change • Group revenues up 17.0%, largely due to better price Sales volumes* ‘000t ‘000t % realization to offset rising costs Nigeria 9,342 9,869 (5.3) • Group EBITDA
Slide 7: Group Financial Overview
Group Financial Overview Income Statement H1 2022 ₦m H1 2021 ₦m % change Revenue 808,037 690,545 17.0% Cost of sales (322,461) (276,115) 16.8% Gross profit 485,576 414,430 17.2% Gross margin 60.1% 60.0% 0.1pp EBITDA 373,163 351,065 6.3% EBITDA margin 46.2% 50.8% -4.6pp EBIT 318,121 301,197 5.3% EBIT
Slide 8: 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 370,211 - 370,211 working capital changes Change in working capital (30,141) - (30,141) Income tax paid (49,864) - (49,864) Additions to fix
Slide 9: Group financial overview (cont’d)
Group financial overview (cont’d) Balance Sheet As at 30/06/22 As at 31/12/21 ₦m ₦m Property, plant and equipment 1,398,504 1,472,859 Other non-current assets 47,514 40,996 Intangible Assets 4,930 5,122 Current Assets 591,925 533,199 Cash and Cash Equivalents 194,466 339,843 Total Assets 2,237,339 2
Slide 10: Nigeria – Gas supply challenges limited production
Nigeria – Gas supply challenges limited production 623 349 • Nigeria H1 sales volume down 5.3% mainly due to 311 inflation and gas supply disruption in Nigeria 494 • Revenues increased by 26.1% to ₦623.0B, supported 332 by price increases to offset inflationary pressures 194 • Significant distributi
Slide 11: Pan-Africa – Extended plant maintenance and repairs
Pan-Africa – Extended plant maintenance and repairs • Volumes down 11.0% to 4.9Mt due to plant maintenance and supply chain challenges. • Revenues down 6.8% to ₦185,056B due to lower sales volume. • EBITDA of ₦31.7B with a margin of 17.1% • Extended plant maintenance and repairs activities in Congo
Slide 12: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 2.0Mt total • Estimated market sales of • Estimated 2.7Mt total market sales for H1 2022 285Kt for H1 2022 market sales for H1 2022 • Increase in consumption • Shutdown of Congo plant • DCP sales of 1.1Mt for H1 owing to individual for 2 months due
Slide 13: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated over 3.6Mt total • Estimated 4.0Mt total • Estimated market sales of market sales for H1 2022 market sales for H1 2022 513Kt for H1 2022 • DCP Ghana sold 117Kt of • DCP sold 643Kt of cement • Robust cement demand cement in H1 2022 in H1 2022. ow
Slide 14: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • GDP growth in South Africa • Estimated 3.3Mt total • Estimated 987Kt total remains low with a subdued market sales for H1 2022 market sales for Q1 2022 outlook • DCP sales of 944Kt for H1 • Macro-factors are still • Builders’ holiday and 2022, including
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 Bond – Key Terms Date Issued an aggregate of almost NGN500 billion in Bond Tranches Pricing Maturity Commercial Papers since 2018. issued ₦100B April 2020 - 12.5% 2025 A - ₦3.6B 11.25% 2024 In August, we successf
Slide 17: 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 18: Robust capital structure
Robust capital structure Strong balance sheet with available liquidity Diverse Capital Structure, ₦B Debt Maturity Profile, ₦B 700 400 17 22 350 600 300 17 500 295 263 250 400 200 Long term 150 295 300 149 Short term 100 200 317 50 100 323 10.5 4 10 0 5 16 100 2022 2023 2024 2025 2026 2027 0 Bank lo
Slide 19: 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 20: Sustainability
Sustainability Investor Presentation
Slide 21: 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 22: 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 23: Environmental Pillar – Focus on Alternative Fuel project
Environmental Pillar – Focus on Alternative Fuel project • Thermal substitution rate is estimated at Circular Economy Model 3.3% for H1 2022 vs. 2.0% in H1 2021. We have increased corporate focus and strategy by • DCP co-processed 67,230 tons of waste in committing to the use of alternative fuel sou
Slide 24: 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 25: 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 26: 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 27: 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 28: Social Pillar – COVID-19 Interventions continue in 2021
Social Pillar – COVID-19 Interventions continue in 2021 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
Slide 29: 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