Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — H1 2020 Earnings Presentation
25 slides from Dangote Cement's earnings presentation, Jul 27, 2020
Slide 1: H1 2020 results
H1 2020 results UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2020 27th JULY 2020 @dangotecement www.dangotecement.com
Slide 2: A resilient H1 2020 performance amidst COVID-19
A resilient H1 2020 performance amidst COVID-19 1Q 2020 2Q 2020 6M 2020 6M 2019 Change Sales volumes* ‘000 tonnes ‘000 tonnes ‘000 tonnes ‘000 tonnes % Nigeria 4,018 3,392 7,410 7,595 (2.4%) Pan-Africa 2,316 2,416 4,732 4,699 0.7% Inter-company sales - (28) (28) - Total 6,334 5,780 12,114 12,294 (1.
Slide 3: H1 2020 Performance
H1 2020 Performance Financial • Group revenue up 2.0%, supported by higher Six months ended 30th June 2020 2019 Change realised prices Sales volumes* ‘000t ‘000t % • Group EBITDA slightly up – strong operating Nigeria 7,410 7,595 (2.4%) performance in Nigeria and Pan-Africa amidst Pan-Africa 4,732 4
Slide 4: Impact of COVID-19 on Q2 (Group)
Impact of COVID-19 on Q2 (Group) Restrictions across our operations MARCH APRIL MAY JUNE Nigeria • South Africa, Ghana, Congo and Nigeria experienced full or partial lockdown in most of April, which impacted our Tanzania operations • Our other operations had various levels of restrictions and South
Slide 5: COVID-19 measures in Nigeria in Q2 2020
COVID-19 measures in Nigeria in Q2 2020 • Lockdown and restrictions varied by state in Nigeria • Key states such as Lagos, Ogun and Abuja were in full Borno Kano lockdown for 5 weeks from the end of March • A few more states joined with total or partial lockdown in April and May Kaduna • Most states
Slide 6: Group Financial Overview
Group Financial Overview Income Statement 2020 2019 Six months to 30th June ₦m ₦m % change Revenue 476,852 467,730 2.0% Cost of sales (202,420) (193,172) 4.8% Gross profit 274,432 274,558 0.0% Gross margin 57.6% 58.7% (1.1pp) EBITDA 218,071 217,944 0.1% EBITDA margin 45.7% 46.6% (0.9pp) EBIT 173,479
Slide 7: H1 2020 EBITDA Development
H1 2020 EBITDA Development Profitability (₦bn) 250.0 32.4 218.1 0.9 7.8 194.4 200.0 150.0 Pan-African operations have delivered their highest ever 100.0 quarterly EBITDA contributions at ₦16.9B for Q2 50.0 0.0 Nigeria Profitable Pan-Africa Non profitable Pan-Africa Central costs and Total eliminatio
Slide 8: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Movement in Net Debt Cash ₦m Debt ₦m Net debt ₦m As at 31st December 2019 123,903 (351,434) (227,531) Cash from operations before 217,790 - 217,790 working capital changes Change in working capital 35,858 - 35,858 Income tax paid (2,792) - (2,792) Additions to fixed
Slide 9: Group Financial Overview (cont’d)
Group Financial Overview (cont’d) Balance Sheet As at 30/6/20 As at 31/12/19 ₦m ₦m Property, plant and equipment 1,251,857 1,206,749 Other non-current assets 113,293 124,203 Intangible Assets 4,548 3,663 Current Assets 332,181 282,833 Cash and Cash Equivalents 103,319 123,903 Total Assets 1,805,198
Slide 10: Nigeria – Fulfilling our Export Plan
Nigeria – Fulfilling our Export Plan 346 28 • Commissioned the Apapa Export Terminal • Maiden shipment of clinker to Senegal through the Apapa Export Terminal in June • H1 volumes down 2.4% YoY 7,250 7,382 • Domestic volumes up 1.8% despite COVID-19 impact • Revenue up 1.2% • EBITDA down 3.1% to ₦19
Slide 11: Pan-Africa – Record High EBITDA Margin
Pan-Africa – Record High EBITDA Margin • Volumes up 0.7% despite the impact of COVID-19 EBITDA margin trend • Revenues up 3.5% to ₦145.0B supported by higher 24% 22% realised prices 22% • Lockdown in South Africa, Congo and Ghana affected 20% Record high EBITDA margin volumes in Q2 18% 17% 17% • Rec
Slide 12: Country Updates
Country Updates CAMEROON CONGO ETHIOPIA • Estimated 386Kt total • Estimated 1.8Mt total market sales for H1 2020 • Estimated 3.7Mt total market sales for H1 2020 market sales for H1 2020 • DCP Congo sold 136Kt of • DCP sales of 687Kt for H1 cement, a 10% increase • DCP sales of 1.1Mt for H1 2020, up
Slide 13: Country Updates
Country Updates GHANA SENEGAL SIERRA LEONE • Estimated 3.2Mt total market sales for H1 2020 • Estimated 3.5Mt total market • Estimated 429Kt total sales for H1 2020 market sales for H1 2020 • DCP Ghana sold 208Kt of cement, a 17% decrease • DCP sales of 850Kt for H1 • DCP sales of 127Kt for H1 compa
Slide 14: Country Updates
Country Updates SOUTH AFRICA TANZANIA ZAMBIA • Negative growth in cement • Estimated 2.7Mt total • Estimated 1.1Mt total market due to depressed market sales for H1 2020 market sales for H1 2020 economy • DCP sales of 526Kt for H1 • DCP sales of 346Kt for H1 • DCP SA H1 2020 sales 2020, down 4% comp
Slide 15: Debt and Liquidity
Debt and Liquidity Robust Capital Structure Investor Presentation
Slide 16: Track record of accessing the local debt market
Track record of accessing the local debt market Bond Programme Commercial Paper Programme In April, we successfully completed the issuance of ₦100B In May, we successfully completed the issuance of ₦100B series 1 fixed rate 5 year bond at a rate of 12.5% series 15 and 16 Commercial Paper Notes ₦B ₦B
Slide 17: Robust Capital Structure
Robust Capital Structure Strong balance sheet with available liquidity Diverse Capital Structure, ₦B Debt Maturity Profile, ₦B 500 250 49 4 157 400 200 136 3 150 1 45 300 99 Long term 77 100 66 200 Short term 318 3 50 100 188 73 100 60 55 0 0 2H20 2021 2022 2023 2024 2025 Bank loan Bond* Commercial
Slide 18: Robust Capital Structure and lower cost of debt
Robust Capital Structure and lower cost of debt LENDING DIVERSIFICATION RATINGS • On 23 January 2020, Global Credit Ratings affirmed the long term Facility Pricings Draw down Tenor and short-term national scale issuer ratings of AA+(NG) and ₦300B Bond Issuance A1+(NG) respectively, assigned to DCP,
Slide 19: Next Phase of Growth
Next Phase of Growth Focus on West and Central Africa Investor Presentation
Slide 20: Cementing Africa's Economic Independence
Cementing Africa's Economic Independence We make the regional and continental free trade agreements a reality Our vision is for West and Central Africa to be cement and clinker independent, with Nigeria the main export hub First clinker shipment from Nigeria to Senegal in June Clinker export from Ta
Slide 21: Focus on West and Central Africa Expansion Strategy
Focus on West and Central Africa Expansion Strategy Existing operations Opportunities Cote d’Ivoire 1.5mt Niger Senegal Ghana Nigeria Sierra Leone Ethiopia Cameroon Gabon Congo Tanzania Liberia Zambia Togo Expansion focus South Africa Integrated plant Grinding plants in West Africa with little or no
Slide 22: Benefits of Export Strategy
Benefits of Export Strategy HIGHER CAPACITY UTILISATION IN NIGERIAN OPERATION: Increase 01 production due to exports will increase capacity utilisation in the Nigerian operation and in turn reduce fixed cost per tonnes. Additional earnings for the Nigerian operation. ECOWAS BENEFITS: African Contine
Slide 23: Sustainability & Governance
Sustainability & Governance The Dangote Way Our 7 Sustainability Pillars support our unique approach to creating a world-class enterprise. We released our 2019 combined Annual Report and Sustainability Report certified by the Global Reporting Initiative (GRI) and Externally Assured. ESG impact CULTU
Slide 24: What we are doing in response to COVID-19
What we are doing in response to COVID-19 Protecting our people and customers Supporting our communities Zambia donated PPEs to the Ministry of Health and bags of cement for Ndola Central Hospital Dangote Cement Isolation Centre Obajana Cameroon donated PPEs, thermometers etc. to the Ministry of Pub
Slide 25: For further information contact: Temi Aduroja
For further information contact: Temi Aduroja Head of Investor Relations Dangote Cement Plc +44 207 399 3070 InvestorRelationsDangoteCement@dangote.com @dangotecement www.dangotecement.com