Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — FY2019 Earnings Presentation
18 slides from Dangote Cement's earnings presentation, Feb 26, 2020
Slide 1: Investor Presentation: Audited Results for Year Ended 31 December 2019
Investor Presentation Building Prosperity in Africa AUDITED RESULTS FOR THE YEAR ENDED 31ST DECEMBER 2019 26th February 2020 @dangotecement www.dangotecement.com
Slide 2: FY 2019 Performance
FY 2019 Performance Financial Full year ended 31st December 2019 2018 % Change • Group revenue down 1.1% owing to higher level of discounts and low growth environment across key Sales volumes ‘000t ‘000t markets. Nigeria 14,119 14,178 (0.4%) Pan-Africa** 9,563 9,381 1.9% • Group EBITDA down 9.2% due
Slide 3: Group Financial Overview
Group Financial Overview Income Statement 2019 2018 Full year ended 31st December ₦m ₦m Change Revenue 891,671 901,213 (1.1%) Cost of sales (379,989) (383,311) (0.9%) Gross profit 511,682 517,902 (1.2%) Gross margin 57.4% 57.5% (0.1pp) EBITDA 395,427 435,261 (9.2%) EBITDA margin 44.30% 48.30% (4.0pp
Slide 4: FY19 EBITDA Development
FY19 EBITDA Development Profitability (₦ bn) 450 54.2 395.4 400 5.4 14.7 361.3 350 300 250 Only Congo remains challenged in terms of positive contribution at 200 EBITDA level 150 100 50 0 Nigeria Profitable Pan-African Congo Central costs & projects Total Dangote Cement | Page 4 Investor Presentatio
Slide 5: Group Financial Overview (cont’d): Movement in Net Debt
Group Financial Overview (cont’d) Movement in Net Debt Cash Debt Net debt ₦m ₦m ₦m As at 1st January 2019 166,896 (335,301) (168,405) Cash generated from operations before changes in working capital 392,258 - 392,258 Changes in working capital 34,391 - 34,391 Income tax paid (4,601) - (4,601) Additi
Slide 6: Group Financial Overview (cont’d): Balance Sheet
Group Financial Overview (cont’d) Balance Sheet As at 31/12/19 As at 31/12/18 ₦m ₦m Property, plant and equipment 1,206, 749 1,171,864 Other non-current assets 124,203 87,792 Intangible Assets 3,663 5,969 Current Assets 282,833 261,942 Cash and Cash Equivalents 123,903 166,896 Total Assets 1,741,351
Slide 7: Nigeria Performance FY19
Nigeria Performance FY19 • DCP maintained a market share in the mid-60s, despite new Domestic sales, Mt capacity in the market and border closure. 14.0 13.7 • Volumes remained flat at 14.1Mt, including export sales of 13.5 13.4 0.45Mt. 13.0 • Domestic sales were 13.7Mt, with growth mirroring the 12.
Slide 8: Nigeria Macro environment
Nigeria Macro environment 2019 – growth remained fragile Inflation versus T bill rate in 2019 14.0% • The Nigerian economy remained subdued throughout 12.0% 2019. Growth remained fragile with a 2.3% GDP growth rate 12.0% for the full year. Infrastructure spend remained modest in 10.0% 2019. 8.0% • H
Slide 9: Development of EBITDA / Tonne
Development of EBITDA / Tonne ₦ 50,000 5,000 ₦ 45,000 ₦ 45,070 ₦ 44,960 ₦ 44,311 ₦ 44,023 ₦ 43,816 ₦ 43,187 ₦ 43,951 ₦ 43,324 ₦ 42,947 ₦ 42,567 ₦ 43,103 ₦ 40,000 4,500 ₦ 40,412 ₦ 35,000 ₦ 30,000 4,000 ₦ 25,000 ₦ 29,176 ₦ 20,000 ₦ 26,175 ₦ 26,952 3,500 ₦ 29,059 ₦ 28,972 ₦ 29,039 ₦ 15,000 ₦ 29,630 ₦ 2
Slide 10: Nigeria Price Development
Nigeria Price Development $200 $180 $160 Ex-factory price after discounts and rebates $140 $119 $120 $112 $100 $80 $60 $/tonne before transport $/tonne after loss on transport Conversion from Naira to US$ is at spot rate Dangote Cement | Page 10 Investor Presentation
Slide 11: Nigeria Cash Cost Analysis
Nigeria Cash Cost Analysis % of average cash costs per tonne, FY 2019 Kiln Fuel 27% Power Plant 12% Production Wages & Salaries 6% Maintenance Manpower 4% Refractories 1% Maintenance Supplies 10% Packaging 12% Contract Maintenance 2% Gypsum 7% SG&A 10% Mine Costs 4% Plant General 6% Cash cost was ap
Slide 12: Pan-Africa Volumes Up
Pan-Africa Volumes Up • Sales volumes (including clinker sales) up 1.9% to 9.6Mt; Pan-African volumes revenues down 0.2% to ₦282.7B. 10,000 9.4Mt 9.6Mt • EBITDA down 2.5% to ₦47.9B. 9,000 • Tanzania’s volumes up 94%. 8,000 • Sierra Leone’s volumes up 116%. • Ethiopia’s volumes dropped owing to short
Slide 13: Country Updates
Country Updates Cameroon Congo Ethiopia Estimated 2.8Mt of total market 243Kt sold in the full year 2019, Sales of 2.0Mt for the full year sales for the FY19 up 11.5% versus 2018 2019, down 4% compared to 2018. Market share of 26% Dangote Cement Cameroon sold 33% market share 1.1Mt of cement, a 6.5%
Slide 14: Country Updates
Country Updates Ghana Senegal Sierra Leone Dangote Cement Ghana sold Volumes up 8.4% to more than Building projects resuming, approximately 500Kt of cement 1.4Mt in 2019 infrastructure investment and in 2019, down 34% compared to foreign aid Plant’s output continuing to 2018 owing to focus on more e
Slide 15: Country Updates
Country Updates South Africa Tanzania Zambia Cement market remains Increase in government Market demand expected to depressed owing to lack of infrastructure spending and grow due to infrastructure infrastructure spending and a increase in cement demand from projects, some of which are competitive m
Slide 16: Sustainability & Governance
Sustainability & Governance 2019 Key ESG Milestones: • DCP published its first standalone GRI Standards Sustainability Report that was externally assured and certified by the Global Reporting Initiative (GRI). • First Premium Board Members’ Report to comply with the new NSE Sustainability Disclosure
Slide 17: Outlook
Outlook 2.5Mt integrated plant in Mugher, Ethiopia • Share buyback process is ongoing; following regulatory approvals the process should be concluded in the coming months. Reverse split process to be explored further in 2020. • Nigeria domestic market: we plan to improve our route to market and cont
Slide 18: Investor Relations Contacts
Investor Relations Contacts For further information contact: Temi Aduroja Head of Investor Relations Dangote Cement Plc +234 905 398 4855 InvestorRelationsDangoteCement@dangote.com @dangotecement www.dangotecement.com