Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — FY2021 Earnings Presentation
29 slides from Dangote Cement's earnings presentation, Mar 1, 2022
Slide 1: FY 2021 results
FY 2021 results AUDITED RESULTS FOR THE YEAR ENDED 31ST DECEMBER 2021 1st March 2022 @dangotecement www.dangotecement.com
Slide 2: FY 2021: Another record year
FY 2021: Another record year SDG FINANCIAL OPERATIONAL SUSTAINABILITY Alignment 27% female Board Profit after tax up 32.0% Group volumes up 13.8% representation at ₦364.4B at 29.3Mt Diverse Board with 6 different nationalities Accorded the long-term Group EBITDA up 43.2% Nigeria volumes up 16.8% iss
Slide 3: The year at a glance
The year at a glance….. 200 160 120 80 March May May May June AAA rating accorded Virtual AGM Bond Issuance Resumed Clinker Share buy-back renewal by GCR Shipments Released our 2020 combined Annual Successful issuance of Series Buy-back programme renewal GCR upgraded DCPs 1 Fixed Rate Bonds under ne
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, SSA grew by 4.0% in 2021. The growth largely results from a sharp improvement in global trade and co
Slide 5: Financial and Operational Overview
Financial and Operational Overview Investor Presentation
Slide 6: FY 2021 – Strong set of results
FY 2021 – Strong set of results Financial • Group revenues up 33.8%, supported by strong Year ended 31st December 2021 2020 Change volume growth Sales volumes* ‘000t ‘000t % • Group EBITDA up 43.2%; with EBITDA margin of Nigeria 18,612 15,936 16.8% 49.5% Pan-Africa 10,856 9,982 8.7% • Nigeria EBITDA
Slide 7: Group Financial Overview
Group Financial Overview Income Statement FY 2021 ₦m FY 2020 ₦m % change Revenue 1,383,637 1,034,196 33.8% Cost of sales (551,019) (437,970) 25.8% Gross profit 832,618 596,226 39.6% Gross margin 60.2% 57.7% 2.52Pp EBITDA 684,595 478,122 43.2% EBITDA margin 49.5% 46.2% 3.3Pp EBIT 582,491 386,734 50.6
Slide 8: 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 2020 145,835 (483,110) (337,275) Cash from operations before 682,900 - 682,900 working capital changes Change in working capital (60,853) - (60,853) Income tax paid (33,408) - (33,408) Additions to fix
Slide 9: Group Financial Overview (cont’d): Balance Sheet
Group Financial Overview (cont’d) Balance Sheet As at 31/12/21 As at 31/12/20 ₦m ₦m Property, plant and equipment 1,472,859 1,390,687 Other non-current assets 40,996 77,072 Intangible Assets 5,122 4,554 Current Assets 533,199 404,303 Cash and Cash Equivalents 339,843 145,835 Total Assets 2,392,019 2
Slide 10: Nigeria – A record result across board
Nigeria – A record result across board 610.2 18.6 • Strong FY sales volumes in Nigeria of 18.6Mt, with 15.9 421.4 growth at 16.8%; despite extended plant maintenance • Robust growth trend continues with strong demand from 14.1 361.2 housing and infrastructure • Solid performance with record high FY
Slide 11: Pan-Africa – Strong volume growth
Pan-Africa – Strong volume growth • Volumes up 8.7% to 10.9Mt as demand remains strong across EBITDA trend all operations 24.0% • Revenues up 24.7 % to ₦397.3, supported by higher realised 22.4% 22.4% prices and volume growth • Strong EBITDA of ₦88.8B, up 24.6%, EBITDA margin of 22.4% 20.0% 17.3% •
Slide 12: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 4.0Mt total • Estimated market sales of • Estimated 7.0Mt total market sales for FY 2021 800Kt for FY 2021 market sales for FY 2021 • Increase in consumption • DCP Congo sold 486Kt of • DCP sales of 2.4Mt for FY owing to individual cement, a 25% in
Slide 13: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated over 7.0Mt total • Estimated 7.9Mt total • Estimated market sales of market sales for FY 2021 market sales for 9M 2021 1.0Kt for FY 2021 • DCP Ghana sold 353Kt of • DCP sales of 1.6Mt for FY • DCP sales of 247Kt for FY cement, down 16% 2021. 202
Slide 14: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • High residential housing • Estimated 6.2Mt total • Estimated 2.5Mt total demand since H2 2020 market sales for FY 2021 market sales for FY 2021 • Sales at DCP South Africa • DCP sales of 1.7Mt for FY • DCP sales of 736Kt for FY remain relatively flat ye
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 In April 2020, DCP successfully completed the issuance of its maiden ₦100B series 1 fixed rate 5-year bond. Issued an aggregate of almost NGN500 billion in Commercial Papers since 2018. In May 2021, DCP successfu
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 DANGOTE DangoteCEMENT Cement PLC’S shareSHARE BUY-BACK buy-back SUMMARY 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 600 22 400 39 350 39 500 177 300 148 400 250 200 300 335 Long term 150 Short term 100 200 356 388 36 50 100 7 4 10 100 0 7 14 2022 2023 2024 2025 2026 2027 0 Bank loan Bond*
Slide 19: 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 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 2020 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 (1) Ernest Ebi * Michel Puchercos Devakumar Edwin Gender diversification: 27% female Board Olakunle Alake Emmanuel Ikazoboh * members Cherie Blair* Philip Mathew Sa
Slide 23: Environmental Pillar – Focus on Alternative Fuel project
Environmental Pillar – Focus on Alternative Fuel project Circular Economy Model • Thermal substitution rate is estimated at We have increased corporate focus and strategy by 2.6% for FY 2021 vs. 1.7% in FY 2020. committing to the use of alternative fuel sources in our • DCP co-processed 89,000 tons
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 industrial coal Cut tires PKS Cashew nut shell, Rice husk scrap tires, paper waste, saw dust, waste plastics Small tires, Waste development for future use saw
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 First Nigerian listed company to report its 1200.0 financial results using XBRL format with the IFRS taxonomy 1000.0 ₦B 800.0 600.0 400.0 200.0 Completed the 0.0 second tranche of the 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2
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 strong benefit Dangote Cement’s existing and potential investors. It represe
Slide 28: Social Pillar – COVID-19 Interventions continue in 2021
Social Pillar – COVID-19 Interventions continue in 2021 Lagos State Isolation Centre donated by CACOVID 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
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