Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — FY2013 Earnings Presentation
11 slides from Dangote Cement's earnings presentation, Mar 26, 2014
Slide 1: An emerging cement major building shareholder value and prosperity in Africa
An emerging cement major building shareholder value and prosperity in Africa Audited results for the year ending 31 December 2013 26 March 2014
Slide 2: Disclaimer
Disclaimer This document is not an offer of securities for sale in the United States. Any securities discussed herein have not been and will not be registered under the US Securities Act of 1933, as amended (the “US Securities Act”) and may not be offered or sold in the United States absent registra
Slide 3: 2013 highlights
2013 highlights Operational • Total Nigerian market volumes up 15.6% to 21.1mt • Dangote Cement Nigerian sales up 28.2% to 13.3mt • Obajana sales up 37.2% • Ibese sales up 40.4% • Direct sales strategy gaining popularity; now >50% of sales • Market share improves to 62.8% Financial • Revenue up 29.4
Slide 4: Robust market growth
Robust market growth Growth in Nigerian cement sales, 2004-2013 (million tonnes) • Market growing at average 10.9% since 2004 Manufactured Imported 25 20 • Nigeria’s monthly cement shipments have grown at an average of 10.6% since January 2011, when compared 15 with the previous year 10 • The market
Slide 5: Operational highlights
Operational highlights Monthly plant performance 2013 (000 tonnes) • Obajana sales up 37.2% to nearly 7.9mt Obajana Ibese Gboko • Disruption to gas supply continued 1,400 1,200 • Coal mill being readied for Line 3 1,000 • Ibese sales up 40.4% to 4.0mt 800 600 • Excellent gas supply, 98% average 400
Slide 6: Improving profitability
Improving profitability Year to 31 December 2012 2013 % change Comments (₦bn) (₦bn) Revenue 298.4 386.2 29.4% Backed by 28.2 % growth in volumes Cost of sales (118.3) (142.5) 20.5% Improvement in gross profit margin due to better fuel mix and volume Gross profit 180.2 243.7 35.3% growth Gross margin
Slide 7: Strong balance sheet
Strong balance sheet Year to 31 December 2012 2013 Comments (₦bn) (₦bn) Non-current assets 534.3 695.1 Increase mainly on account of various cement projects under execution Current assets 123.9 148.1 Due to higher bank balance Total assets 658.2 843.2 Equity 404.5 550.1 Non-current liabilities 117.6
Slide 8: Excellent cash flow
Excellent cash flow Year to December 2012 2013 Comments (₦bn) (₦bn) Profit before tax 135.6 190.8 Cash flow from operations 180.3 231.5 Changes in working capital (35.1) 50.2 Net cash from operations 145.1 281.7 Investments (108.6) (175.6) Financing (10.7) (76.4) Increase in cash during year 25.8 29
Slide 9: Update on African projects
Update on African projects • New Nigerian lines on schedule to begin production this year • 2 x 3mt lines at Ibese • 3mt line at Obajana • Sephaku Cement already selling cement from Delmas • Aganang integrated plant expected to be in operation by summer • Cameroon likely to begin operations in summe
Slide 10: Outlook for 2014
Outlook for 2014 • Good start to 2014 • Expect to increase direct deliveries, gain share • Focus on 42.5 strength cement as best for Nigeria, 3X launch • Adding 52.5 strength for heavy load-bearing structures • Continuing fuel disruption at Obajana in Q1 • Nigeria tax rate likely to be 10%-12% in 20
Slide 11: Investor relations
Investor relations For further information contact: Carl Franklin Uvie Ibru Ayeesha Aliyu Group Head of Investor Relations Investor Relations Investor Relations Dangote Industries London Lagos +44 207 399 3070 +44 207 399 3070 +234 1 448 0815 +44-7713 634 834 carl.franklin@dangote.com uvie.ibru@dang