Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — Q1 2016 Earnings Presentation
12 slides from Dangote Cement's earnings presentation, Apr 26, 2016
Slide 1: An emerging cement major building shareholder value and prosperity in Africa
An emerging cement major building shareholder value and prosperity in Africa Unaudited results for the three months ended 31st March 2016 26th April 2016
Slide 2: Highlights for Q1 2016
Highlights for Q1 2016 Financial results Regional revenues (₦bn) • Revenue up 22.5% to ₦140.5B Three months to 2016 2015 Change 31st March • EBITDA up 0.6% at ₦72.4B at 51.5% margin, Nigeria 107.2 101.4 5.7% • Net debt of ₦148.7B, down from ₦204.2B at 31/12/15 West & Central 23.5 4.7 402% Africa Ope
Slide 3: Financial Overview: Income Statement
Financial Overview Income Statement Three months to 31st March 2016 2015 ₦B ₦B % change Comments Revenue 140.5 114.7 22.5% Increase mainly due to non-Nigerian factories offsetting price cut in Nigerian market Cost of sales (62.2) (40.0) 55.5% Higher fuel cost owing to increased LPFO use in Nigeria G
Slide 4: Financial Overview: Cash costs per tonne
Financial Overview % of average cash costs per tonne (Nigeria, 2016 ytd) Plant general SG&A 9% 13% Kiln fuel 28% Direct wages 7% O&M contract Power & Maintenance 3% 11% Maintenance supplies 7% Packaging Other variable 10% Limestone 2% 1% Gypsum Mine costs Refractories 5% 2% 2% 4
Slide 5: Financial Overview (cont'd): Movement in net debt
Financial Overview (cont’d) Movement in net debt Cash Debt Net debt ₦B ₦B ₦B As at 1st January 2016 40.8 (245.0) (204.2) Cash generated from operations before 75.2 - 75.2 changes in working capital Changes in working capital 12.6 - 12.6 Income tax paid - - - Capital expenditure (24.7) - (24.7) Other
Slide 6: Financial Overview (cont'd): Balance sheet
Financial Overview (cont’d) Balance sheet As at As at 31/03/16 31/12/15 ₦B ₦B Property, plant and equipment 921.7 917.2 Other non-current assets 24.5 25.1 Intangible assets 2.7 2.6 Current assets 147.3 125.2 Cash and cash equivalents 65.7 40.8 Total Assets 1,161.9 1,110.9 Non-current liabilities 60.
Slide 7: Nigeria Q1 2016
Nigeria Q1 2016 • Price reduction drives record Q1 sales up 45.4% to 4.5Mt Nigeria performance • Market share of 66% vs 58% in Q1 2015 Three months to 2016 2015 Change 31st March • Imports rapidly falling away at lower price Volumes sold (kt) 4,513 3,104 45.4% • Gas disruption at Ibese weighs on mar
Slide 8: West & Central Africa Q1 2016
West & Central Africa Q1 2016 • Strong performance across the region West & Central Africa performance Three months to • Sales volumes rise 449% to 1.2Mt, including Ethiopia 31st March 2016 2015 Change • Revenues rise 402% to ₦23.5B Volumes sold (kt) 1,246 227 449% • Excellent sales increases across
Slide 9: South & East Africa Q1 2016
South & East Africa Q1 2016 • Sales volumes up 50% to 0.7Mt South & East Africa performance • Region hit by economic downturn and currency challenges Three months to 2016 2015 Change 31st March • Revenues up 17.4% to ₦10.2B Volumes sold (kt) 691 463 49.2% • Operating loss of ₦1.2B owing to currency
Slide 10: Outlook for 2016
Outlook for 2016 • Strong Nigeria sales momentum maintained into Q2 • April expected to be record month in Nigeria • Market clearly stimulated by price cut • Building activity driven mostly by local investment in building +47% +46% • Nigerian Government committed to infrastructure spend • Allocated
Slide 11: Expanding and diversifying
Expanding and diversifying End 2015 End 2019 * Type Nigeria Mta Mta Expected capacity additions, 2016-2019* (Mta) Obajana 13.3 13.3 Integrated Ibese 12.0 12.0 Integrated 80 Gboko 4.0 4.0 Integrated Itori - 3.0-6.0 Integrated Okpella - 6.0 Integrated 70 Total Nigeria 29.3 38.3-41.3 West & Central Afr
Slide 12: Investor Relations
Investor Relations For further information contact: Carl Franklin Ayeesha Aliyu Head of Investor Relations Investor Relations Dangote Cement Plc Lagos +44 207 399 3070 +234 1 448 0815 +44-7713 634 834 carl.franklin@dangote.com Ayeesha.aliyu@dangote.com www.dangotecement.com @DangoteCement 12