Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — Q1 2022 Earnings Presentation
28 slides from Dangote Cement's earnings presentation, May 5, 2022
Slide 1: Q1 2022 results
Q1 2022 results UNAUDITED RESULTS FOR THREE MONTHS ENDED 31ST MARCH 2022 5th May 2022 @dangotecement www.dangotecement.com
Slide 2: Q1 2022: A solid start to the year
Q1 2022: A solid start to the year SDG FINANCIAL OPERATIONAL SUSTAINABILITY Alignment 27% female Board Profit after tax up 18.0% Group volumes down 3.6% representation at ₦105.9B at 7.2Mt Diverse Board with 6 different nationalities Issuance of ₦116B Group EBITDA up 18.6% series 2 Bond. 3Mta Okpella
Slide 3: 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, the global security challenges will contribute to a significant slowdown in global growth in 2022. •
Slide 4: Financial and Operational Overview
Financial and Operational Overview Investor Presentation
Slide 5: Q1 2022 – Strong set of results
Q1 2022 – Strong set of results Financial Year ended 31st March 2022 2021 Change • Group revenues up 24.2%, largely due to full year benefit of better price realisation. Sales volumes* ‘000t ‘000t % • Group EBITDA up 18.6%; with EBITDA margin of Nigeria 4,834 4,908 -1.5% 51.1% Pan-Africa 2,414 2,613
Slide 6: Group financial overview
Group financial overview Income Statement Q1 2022 ₦m Q1 2021 ₦m % change Revenue 413,181 332,651 24.2% Cost of sales (154,108) (127,996) 20.4% Gross profit 259,073 204,655 26.6% Gross margin 62.7% 61.5% 1.2pp EBITDA 211,021 177,971 18.6% EBITDA margin 51.1% 53.5% -2.4pp EBIT 182,803 151,744 20.5% EB
Slide 7: Group financial overview (cont’d)
Group financial overview (cont’d) Movement in debt Cash ₦m Debt ₦m Net debt ₦m As at 31st December 2021 339,843 (564,940) (225,097) Cash from operations before 212,565 - 212,565 working capital changes Change in working capital (1,048) - (1,048) Income tax paid (837) - (837) Additions to fixed asset
Slide 8: Group financial overview (cont’d)
Group financial overview (cont’d) Balance Sheet As at 31/03/22 As at 31/12/21 ₦m ₦m Property, plant and equipment 1,428,001 1,472,859 Other non-current assets 50,318 40,996 Intangible Assets 5,266 5,122 Current Assets 758,522 533,199 Cash and Cash Equivalents 218,304 339,843 Total Assets 2,460,411 2
Slide 9: Nigeria – Gas supply challenges limited production
Nigeria – Gas supply challenges limited production 196.5 321.9 • Nigeria Q1 sales volume down 1.5% mainly due to gas 157.9 supply disruption in Nigeria 239.7 • Robust growth trend continues with strong demand from 179.3 housing and infrastructure 103.5 • Solid performance with Q1 EBITDA of ₦196.4B,
Slide 10: Pan-Africa – Extended plant maintenance and repairs
Pan-Africa – Extended plant maintenance and repairs • Volumes down 7.6% to 2.4Mt due to plant maintenance and supply chain challenges. • Revenues down 1.8% to ₦91.3B due to lower sales volume. • EBITDA of ₦18.2B, down 23.0%; EBITDA margin of 20.0% • Extended plant maintenance and repairs activities
Slide 11: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 976Kt total • Estimated market sales of • Estimated 1.5Mt total market sales for Q1 2022 86Kt for Q1 2022 market sales for Q1 2022 • Increase in consumption • Growing cement demand • DCP sales of 0.58Mt for Q1 owing to individual notably owing to a
Slide 12: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated over 1.8Mt total • Estimated 1.9Mt total • Estimated market sales of market sales for Q1 2022 market sales for Q1 2022 236Kt for Q1 2022 • DCP Ghana sold 46Kt of • DCP sold 0.35Mt of cement • Robust cement demand cement in Q1 2022. in Q1 2022. o
Slide 13: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • GDP growth in South Africa • Estimated 1.6Mt total • Estimated 0.47Mt total remains low with a subdued market sales for Q1 2022 market sales for Q1 2022 outlook • DCP sales of 0.51Mt for Q1 • Macro-factors are still • Builders’ holiday and 2022, includi
Slide 14: Debt and Liquidity
Debt and Liquidity Robust Capital Structure Investor Presentation
Slide 15: Track record of accessing Debt Capital Market
Track record of accessing Debt Capital Market Bond Programme Commercial Paper Programme Bond – Key Terms Date Issued an aggregate of almost NGN500 billion in Bond Tranches Pricing Maturity Commercial Papers since 2018. issued ₦100B April 2020 - 12.5% 2025 A - ₦3.6B 11.25% 2024 In August, we successf
Slide 16: 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 DangoteCEMENT DANGOTE Cement PLC’S shareSHARE buy-back summary BUY-BACK SUMMARY • DCP’s bought back 0.74% of its issued and fully paid- Share Capital Analysis up ord
Slide 17: Robust capital structure
Robust capital structure Strong balance sheet with available liquidity Diverse Capital Structure, ₦B Debt Maturity Profile, ₦B 600 400 21 24 350 500 24 179 300 148 250 400 200 300 314 Long term 150 Short term 100 200 335 36 349 50 100 10 4 10 100 0 6 14 2022 2023 2024 2025 2026 2027 0 Bank loan Bond
Slide 18: Robust capital structure
Robust capital structure LENDING DIVERSIFICATION RATINGS • On 29 April 2022, Global Credit Ratings Facility Pricings Draw down Tenor long-term Issuer rating to AA+ (NG) and affirmed the short-term Bond 12.5% ₦100B 2025 issuer rating of A1+(NG), with outlook as Stable 11.25%- long-term Issue rati
Slide 19: Sustainability
Sustainability Investor Presentation
Slide 20: 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 21: Institutional Pillar – Strong governance framework
Institutional Pillar – Strong governance framework Board of Directors (includes five Independent Directors) Diverse Board Aliko Dangote Ernest Ebi * Michel Puchercos Devakumar Edwin Gender diversification: 27% female Board Olakunle Alake Emmanuel Ikazoboh * members Cherie Blair* Philip Mathew Abdu D
Slide 22: 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 2.9% for Q1 2022 vs. 1.6% in Q1 2021. committing to the use of alternative fuel sources in our • DCP co-processed 33,248 tons
Slide 23: 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 Cut tires PKS Cashew nut shell, Rice husk scrap tires, paper waste, saw dust, waste plastics Small tires, Waste development for future use saw dust, PP bags, fl
Slide 24: 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 25: Financial Pillar – Creating value for shareholders
Financial Pillar – Creating value for shareholders 1600.0 1400.0 Completed the 1200.0 second tranche of the buy-back programme. 1000.0 ₦B 800.0 600.0 400.0 200.0 0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Revenues EBITDA Cash flow from operations Capex Dividend paid 19% 11-year CAGR
Slide 26: 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 27: Social Pillar – COVID-19 Interventions continue in 2021
Social Pillar – COVID-19 Interventions continue in 2021 International Women’s Day celebration 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 core SDGs
Slide 28: 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