Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — H1 2023 Earnings Presentation
27 slides from Dangote Cement's earnings presentation, Jul 31, 2023
Slide 1: H1 2023 results
H1 2023 results UNAUDITED RESULTS FOR SIX MONTHS ENDED 30th JUNE 2023 31st July 2023 @dangotecement www.dangotecement.com
Slide 2: H1 2023: Recurring PAT up 37.4% at ₦292.2B
H1 2023: Recurring PAT up 37.4% at ₦292.2B FINANCIAL OPERATIONAL SUSTAINABILITY Alignment SDG 29% female Board Group revenue up 17.7% Strong pan-Africa volumes representation to ₦950.8B up 11.6% to 5.4Mt Diverse Board with 4 different nationalities Completed Tranche I of Record pan-Africa Commenced
Slide 3: The year so far…
The year so far….. February March March April June Itori Cement Plant 2nd Buyback Progamme Commercial Paper AGM Grinding Plant Signed MoU for planned 6Mta Itori Received regulatory approval for Issued Commercial Papers for Released our 2022 combined Commenced operations at our Cement Plant DCPs seco
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. • For our ope
Slide 5: Nigeria - Macro-economic environment
Nigeria - Macro-economic environment Economic Growth Interest Rate Exchange Rate ▪ Nigeria’s GDP grew at a slower pace of 2.3% in ▪ In the second quarter, Nigeria floated the ▪ The CBN hiked MPR for eight-consecutive time Q1 2023 from 3.11% in Q1 2022, as election naira, allowing for market determin
Slide 6: Financial and Operational Overview
Financial and Operational Overview Investor Presentation
Slide 7: Q2 2023 – Robust performance on improved volumes
Q2 2023 – Robust performance on improved volumes Group EBITDA up 58.8% YoY at ₦257.5B Financial Three months ended June Q2 2023 Q2 2022 Change • Group revenues up 37.8% at ₦544.1B Sales volumes* ‘000t ‘000t % • Pan Africa revenue more than doubled to ₦210.0B Nigeria volumes 4,466 4,509 (1.0) • Group
Slide 8: H1 2023 – Impressive first half performance
H1 2023 – Impressive first half performance Recurring PAT up 37.4% to ₦292.2B Six months ended June H1 2023 H1 2022 Change Financial Sales volumes* ‘000t ‘000t % • Group revenues up 17.7% Nigeria volumes 8,108 9,342 (13.2) • Group EBITDA up 18.8%; with a margin of 46.6% Pan-African volumes 5,427 4,8
Slide 9: Group Financial Overview
Group Financial Overview Income Statement H1 2023 ₦m H1 2022 ₦m % change Revenue 950,832 808,037 17.7% Cost of sales (383,088) (322,461) 18.8% Gross profit 567,744 485,576 16.9% Gross margin 59.7% 60.1% (0.4pp) EBITDA 443,255 373,163 18.8% EBITDA margin 46.6% 46.2% 0.4pp EBIT 380,036 318,121 19.5% E
Slide 10: Group Financial Overview (cont’d) - Movement in debt
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 391,566 - 391,566 working capital changes Change in working capital 14,285 - 14,285 Income tax paid (55,731) - (55,731) Additions to fixed a
Slide 11: Group Financial Overview (cont’d) - Balance Sheet
Group Financial Overview (cont’d) Balance Sheet As at 30/6/23 As at 31/12/22 ₦m ₦m Property, plant and equipment 2,016,424 1,527,293 Other non-current assets 79,126 58,676 Intangible Assets 10,981 6,225 Current Assets 760,782 739,618 Cash and Cash Equivalents 320,761 283,843 Total Assets 3,188,074 2
Slide 12: Nigeria - Strong Q2 recovery on improved economic activities
Nigeria - Strong Q2 recovery on improved economic activities 4,466 338 • Nigeria Q2 results showed strong recovery, with volumes and revenue up 22.6% and 20.7%, respectively over Q1 numbers 3,642 280 • However, H1 2023 volumes were down, due to the election uncertainties and the currency crunch in t
Slide 13: Pan-Africa – Record EBITDA, up two-folds
Pan-Africa – Record EBITDA, up two-folds Solid pan-African growth, reinforcing our Africa strategy Strong pan-African EBITDA • Volumes up 11.6% to 5.4Mt, driven by strong volume growth from 106.0 Ethiopia, Senegal, Cameroon, Congo and Zambia 93.6 86.0 • Revenues up 81.8% to ₦336.4B, on improved sale
Slide 14: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 2.1Mt total • Estimated market sales of • Estimated 3.4Mt total market sales in H1 2023 389Kt in H1 2023 market sales in H1 2023 • Ongoing constructions of • Clinker exports to • DCP sales of 1.2Mt in H1 roads and bridges Cameroon commenced in 2023
Slide 15: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated over 3.3Mt total • Estimated total market • Estimated market sales of market sales in H1 2023 sales of 4.9Mt in H1 2023 418Kt in H1 2023 • DCP Ghana sold 145Kt of • DCP sold 890.5Kt of • Pockets of stock shortages cement in H1 2023, up cement in
Slide 16: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • GDP growth in South Africa • Estimated 1.7Mt total • Estimated 1.1Mt total remains low with a subdued market sales for H1 2023 market sales for H1 2023 outlook • DCP sold 932.4Kt for H1 • DCP Zambia sold 315.5Kt • Alternative fuel usage 2023, down by 1.
Slide 17: Debt and Liquidity
Debt and Liquidity Robust Capital Structure Investor Presentation
Slide 18: 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 Upsized our commercial paper programme to ₦300 billion Green Bonds and Sukuk from ₦150 billion Outstanding Bonds Outstanding Commercial Paper Tranches Series
Slide 19: Robust capital structure
Robust capital structure LENDING DIVERSIFICATION RATINGS • On 21 July 2023, 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 stabl
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 2022 combined Annual Report and Sustainability Report with ESG data presented as per Global Reporting Initiative (GRI) ref
Slide 22: Strong governance framework
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 Dantata Viswanathan Shankar
Slide 23: ESG is at the heart of Our Operation (H1 2023 highlights)
ESG is at the heart of Our Operation (H1 2023 highlights) Environmental Social Governance • Alternative Fuel Thermal Substitution Rate • N822 million spent on social intervention • AGM held in April, where shareholders (TSR) at 7.9% in H1 2023 versus 3.3% in H1 activities across the Group in H1 2023
Slide 24: CDP rating upgraded to B
CDP rating upgraded to B B B 50 2022 • Submission to Carbon Disclosure Project (CDP) B- Sustained progress in climate and environmental sustainability • Rated “B” by CDP on our carbon disclosure for 2021 disclosure 2022, second consecutive upgrade • One of the highest ratings in Sub-Saharan Africa C
Slide 25: Diversity and Integration
Diversity and Integration International Women’s Day celebration Sustainability week Theme: “People, Planet and Profit –The Dangote Way” Diversity and Integration ₦822 million spent on CSR in H1 2023 up 56.9% YoY • Launch of Dangote Cement crèche to support workplace childcare. • To promote gender di
Slide 26: Outstanding Financial Performance
Outstanding Financial Performance 2022 Group revenue up Group Revenue (N’B) Group EBITDA (N’B) 1800 17.0% at 800 1600 700 ₦1,618.3B 1400 600 1200 500 1000 800 400 600 300 2022 Group EBITDA up 400 200 3.5% at 200 100 0 0 ₦708.2B 2022 PAT up 4.9% at Dividend Paid (N’B) 450 Group PAT (N’B) ₦382.3B 400
Slide 27: For further information contact: Temi Aduroja
For further information contact: Temi Aduroja Head of Investor Relations Dangote Cement Plc +234 915 469 1597 InvestorRelationsDangoteCement@dangote.com @dangotecement www.dangotecement.com