Dangote Cement Plc · NSENG:DANGCEM

Dangote Cement — Q1 2019 Earnings Presentation

14 slides from Dangote Cement's earnings presentation, Apr 29, 2019

  1. Slide 1: Unaudited Results for the Three Months Ended 31st March 2019

    Wa RASA eS SDAA C' UNAUDITED RESULTS FOR THE THREE MONTHS ENDED 315’ MARCH 2019 297 APRIL 2019 @dangotecement y vwwnn-dangotecementcom |[__] DANGOTE == CEMENT

  2. Slide 2: Q1 2019 Highlights

    Q1 2019 Highlights FINANCIAL * Group revenue down 0.8% — Election delays, discounting * Group EBITDA down 11.2% — 46.5% margin * Earnings per share down 15.7% to &3.54 OPERATIONAL * Group volumes up 2.3% — Nigeria volumes actually third-highest quarter despite impact of election * Pan-African volume

  3. Slide 3: Group Financial Overview

    Group Financial Overview Three months to 2019 2018 31st March Nm Nm | % change Revenue 240,157 242,116 (0.8%) Cost of sales (99,478) (97,352) 2.2% Gross profit 140,679 144,764 (2.8%) Gross margin 58.6% 59.8% (1.2pp) EBITDA 111,761 125,917 (11.2%) EBITDA margin 46.5% 52.0% (5.5pp) EBIT 88,382 103,787

  4. Slide 4: EBITDA Development

    EBITDA Development isere — Hi increase Mi Decrease ‘ Total 120 12.7 3 Fey TT | 3 35 100 Nigeria Profitable Pan-African Congo Central costs Total * Discounting and higher input costs weighed on EBITDA * Only Congo delivered a negative EBITDA in Q1 2019 Investor Presentation

  5. Slide 5: Group Financial Overview: Cash, Debt and Net Debt

    SR Group Financial Overview «..:. DANGOTE Cash Debt Net debt mM AM xm As at 31st December 2018 166,896 (335,301) (168,405) eee na niet Changes in working capital 42,415 42,415 Income tax paid (611) (611) Additions to fixed assets (41,591) (41,591) Other investing activities (26) (26) Change in non-c

  6. Slide 6: Group Financial Overview: Balance Sheet

    Group Financial Overview «..::: As at 31/3/19 As at 31/12/18 mM sm Property, plant and equipment 1,188,079 1,171,864 Other non-current assets 86,659 87,792 Intangible Assets 5,805 5,969 Current Assets 287,835 261,942 Cash and Cash Equivalents 173,679 166,896 Total Assets 1,742,057 1,694,463 Non-curr

  7. Slide 7: • • 5,000 4,500 • ₦ 4,000 • 3,500 • 3,000 2,500 2,000 1,500

    • • 5,000 4,500 • ₦ 4,000 • 3,500 • 3,000 2,500 2,000 1,500 1,000 500 ₦ 0 ₦ Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 2019

  8. Slide 8: Revenue per tonne

    ₦ 50,000 5,000 ₦ 45,000 ₦ 40,000 ₦ 43,816 ₦ 44,311 4,500 ₦ 45,070 ₦ 44,960 ₦ 44,023 ₦ 43,187 ₦ 42,567 ₦ 42,947 ₦ 35,000 ₦ 40,412 ₦ 30,000 4,000 ₦ 37,817 ₦ 25,000 ₦ 26,622 ₦ 28,192 ₦ 28,972 ₦ 20,000 ₦ 23,743 ₦ 29,630 ₦26,952 ₦ 25,903 3,500 ₦ 29,176 ₦ 29,059 ₦ 29,039 ₦ 25,738 ₦ 15,000 ₦ 26,175 ₦ 10,00

  9. Slide 9: Nigeria Price Development

    Nigeria Price Development Aare CEMENT Ex-factory price after discounts and other rebates 42,200 = - ‘ - : $200 re a / $180 ¥ 2,000 \— Ni : $160 § 1,800 : : ex : $140 “ 4 eee mN : $120 1,400 ee : LZ ; DieeE $100 § 1,200 $80 § 1,000 : $60 OD DD A A DS DO O_O OO © SO OO ON NA Mw WO PPM MS MO O_O OO © ©

  10. Slide 10: Nigeria Cash Cost Analysis

    Nigeria Cash Cost Analysis xed Kiln Fuel a Power Plant Production Wages & Salaries Maintenance Manpower DANGOTE CEMENT _ Contract te Mine Costs Cash cost was approximately $35/tonne in Q1 2019 65% of cash costs are US Dollar based, though less than 20% paid in Dollars Investor Presentation

  11. Slide 11: Pan-Africa Revenues Up

    Pan-Africa Revenues Up pase CEMENT * Sales volumes up 4.8% to 2.3Mt sales ('000 tonnes) * Revenues up 2.5% to &70.3B * EBITDA down 9.3% to % 11.9B 2,500 * Good Q1 performances = i 0, Zambia volumes up 15.0% Aa — Tanzania volumes up 127.0% = 0/ Congo volumes up 49.0% ‘ice — Sierra Leone volumes up 78

  12. Slide 12: Country Updates: Cameroon, Congo, Ethiopia

    Country Updates isere CEMENT Estimated 750Kt total Q1 58kKt sold in Q1, up 49.0% on Political landscape improved market the 39Kt sold last year Sales up 19.2% to 527Kt Housing and infrastructure 32% market share achieved from 443Kt last year driving sales Introduction of new 32.5R Market share 24.2%

  13. Slide 13: Country Updates: Ghana, Senegal, Sierra Leone

    Country Updates GDP accelerating with attractive outlook for cement demand Increased government infrastructure spending ahead of 2020 elections Market drivers include Tema- Accra highway, the airport in Kumasi, the extension of the BUIPE dam and the port in Takoradi Volumes down to 117Kt owing to la

  14. Slide 14: South Africa, Tanzania, Zambia

    South Africa Tanzania Zambia

Dangote Cement — Q1 2019 Earnings Presentation on 6ix