An emerging cement major building shareholder value … Cement... · An emerging cement major building shareholder value ... • Including Ghana and first sales from Sephaku ... •DIL

An emerging cement major building shareholder value

and prosperity in Africa

September 2014

Disclaimer

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2

At a glance

• Largest cement producer in Africa– Leader in sub-Saharan Africa’s largest, most profitable market - Nigeria

– 29MTPA capacity across three state-of-the-art plants in Nigeria

– New capacity coming onstream across Africa in 2014-16

• Delivering superior financial and operating performance– H1 2014 revenues of ₦208.9bn ($1,258m)

– H1 2014 EBITDA of ₦129.3bn ($813m) at 62% margin

– Net debt of ₦200.0bn, well below cement industry EV/EBITDA norms

• Massive expansion underway into sub-Saharan Africa– On track to deliver more than 60MTPA integrated / grinding / import

capacity across 13 countries

– More than $5bn committed for expansion in 2012-16

– Current funding plan is 60% equity / 40% debt

• Largest company on Nigerian Stock Exchange– Market capitalisation $24bn; ca. 30% of NSE

– A bellwether on the cement sector and on Africa’s growth

3

Investment summary

4

African megatrends driving GDP growth are accelerating

consumption of cement

• Political stability and economic transformation sustaining 6% growth across the continent

• Population growth, younger demographic and rapid urbanisation driving housing, infrastructure

• Infrastructure improvements unlocking resources, agriculture, with strong multiplier effects

Attractive markets with high and sustainable growth prospects

• High upside potential from low per-capita consumption as infrastructure and housing increase

• Strong and sustainable pricing with many markets in deficit or lacking limestone resources for cement

• Favourable investment climate in many African countries, with tax incentives / holidays

Clear strategy to become Africa’s leading cement producer

• Dominates Africa’s strongest and most profitable market, Nigeria, with 63% market share of sales FY13

• Using Nigeria as low-cost base to reach a third of Africa with clinker/bulk cement

• Investing more than $5bn across the region to build operations in 13 countries

High barriers create sustainable competitive advantages

• High capex required, many major producers burdened by large debts that hamper investment in Africa

• Highly technical operations, significant distribution relationships are an asset

• Long lead times on plants, availability of adequate limestone near to fuel and viable markets

Delivering outstanding financial performance and strong returns

• $2.45bn sales in 2013 with strong growth expected as demand increases and new plants come online

• Excellent returns generated by high EBITDA - $1.45bn in FY 2013,

• FY 2013 results in Nigeria show upside potential on margins when gas supply improves

Visionary founder, management depth, improving governance

• Founder backed by strength and depth in management team with decades of experience

• Improving governance and disclosure, IFRS compliant accounts in 2012

• Strong social/community programme via Dangote Foundation, substantial help for local communities

H1 2014 Performance

5

Operational

• Total Nigerian market volumes up 1.2% to 11.1mt

• Gas supply a constraining factor, compounded by LPFO shortages

• Dangote Cement Nigerian sales up 0.9% to 6.8mt

• Gboko sales up 63%

• Obajana sales down 6.0%

• Ibese sales down 4.8%

• Group cement sales up 0.3% to 7.1mt

• Direct sales strategy gaining popularity

• Launch of 3x brand of 42.5R cement (quicker setting)

Financial

• Revenue up 5.3% to ₦208.9bn

• Gross profit up 1.1% to ₦133.5bn, 63.9% gross margin

• EBITDA up 1.6% to ₦129.3bn at 61.9% margin

• EBIT up 0.8% ₦112.0bn

• Earnings per share down 11.0% to ₦5.63

• Some Nigerian operations now taxable

• Net debt ₦200.0bn (after dividend payment of ₦119bn)

Revenues improve

6

Six months to 30 June

2013 (₦bn)

2014 (₦bn)

% change Comments

Revenue 198.5 208.9 5.3% Production constrained by disruption to gas supply

Cost of sales (66.3) (75.4) 13.6% Increased fuel cost, higher % of Gboko in revenue mix

Gross profit 132.1 133.5 1.1%

Gross margin 66.6% 63.9%

EBITDA 127.3 129.3 1.6%

EBITDA margin 64.1% 61.9%

EBIT 111.0 112.0 0.8%

EBIT margin 56.0% 53.6%

Net interest (3.4) (4.9) 44.2%

Profit before tax 107.7 107.0 (0.6%)

Earnings per share (naira)

6.33 5.63 Obajana 1+2 and Gboko now subject to taxation of profits

Strong balance sheet

7

Six months to 30 June 2013 (₦bn)

2014 (₦bn)

Comments

Non-current assets 695.1 777.6

Current assets 148.0 122.5

Total assets 843.2 900.0

Equity 550.1 527.0

Non-current liabilities 129.6 134.6

Current liabilities 163.5 238.4

Total equity & liabilities 843.2 900.0

Cash 70.5 36.2

Overdraft (0.9) (2.3)

Short-term debt (55.4) (104.8)

Long-term debt (124.9) (129.2)

Net cash (debt) (110.6) (200.0)

Strong cash flow and ratios

8


2014 (₦bn)

Comments

Profit before tax 107.7 107.1

Net cash from operations 141.8 145.3

Investments (83.3) (117.2)

Financing (60.0) (70.9)

Increase in cash during year (1.5) (42.9)

Exchange rate effects 6.8 7.1

Cash at beginning of period 43.2 69.6

Cash at end of period 48.5 33.9


2014 (₦bn)

Comments

EBITDA margin 64% 62% Remains strong despite gas supply constraints

PBT margin 54% 51%

PAT margin 54% 46% Obajana 1+2, Gboko now out of Pioneer Tax status

Gearing (Net debt/equity) 24% 38%

Net debt / H1 EBITDA 0.9x 1.54x Not annualised

Operational summary

9

• Overall Group sales up 0.3% to 7.1mt

• Compared with exceptionally strong H1 2013

• Including Ghana and first sales from Sephaku

• Nigerian sales hit by fuel disruption

• Obajana sales down 6.0% to 3.8mt

• 69% gas utilisation, LPFO shortage at refinery level

• Coal mill being readied for Line 3 (September)

• Ibese sales down 4.8% to 1.9mt

• 94% gas utilisation but some days’ production affected

• Coal mill ready for Lines 1+2

• Gboko sales up 63% to 1.0mt

• Strong year-on-year growth after mothballing in January 2013

• But challenged by LPFO shortages – primary fuel

• Direct sales now more than half of dispatches

• Ghana volumes down to 170kt – currency impact

• Sephaku Cement begins production at Delmas

Towards fuel security

10

• Gas will remain primary fuel of choice despite problems in distribution

• Strategy is to reduce dependence on LPFO as back-up fuel

• Switch to cheaper coal to improve margins vs LPFO use

• Imported at first

• Locally mined in longer term

• $80m already invested in coal facilities at gas-fired plants

• Ibese 1+2 – ready for operations

• Obajana 3 – ready in September

• Further $300m being invested to enable 100% use of coal if necessary

• Obajana 1,2,4

• Ibese 3+4

• Gboko 1+2 (including switch to coal-fired power generation)

• Projects expected operational by end 2015

• DIL/DCP examining feasibility of mining coal near to Obajana, Gboko

• DIL keen to invest in oil/gas blocks

African expansion gains pace

11

• New Nigerian lines have started producing clinker/cement

• 2 x 3MTPA lines at Ibese

• 3MTPA line at Obajana

• Sephaku Cement already selling cement from Delmas

• Aganang integrated plant now producing clinker

• Zambia on track for opening in 2014

• Cameroon to begin operations soon

• Senegal plant commissioning has commenced

• Ethiopia will commence before the end of the year

• Sierra Leone will open in Q4 2014

• Reviewing scope of Kenya in light of finding good limestone deposits

• South Sudan on hold owing to conflict

Outlook for 2014

12

• Gas disruption expected to continue

• Coal facilities ready at Ibese 1+2, expected September at Obajana 3

• Investing $300m in additional coal facilities across all plants

• Mining operations planned longer term

• Also looking to acquire oil/gas blocks to help secure gas supplies

• FLSmidth assumes O&M responsibility for Ibese 1+2

• Expect to increase direct deliveries, gain share

• Focus on 42.5R strength cement as best for Nigeria

• Adding 52.5 strength for heavy load-bearing structures

• Nigeria average tax rate likely to be 10%-12% in 2014

• Obajana 1+2 and Gboko now out of Pioneer Tax status

• Capex of about $1bn for 2014

A roadmap for expansion

13

End 2013

20MTPA capacity

• Nigerian capacity increased to 20MTPA which ramped up throughout the year

• Obajana 10.25MTPA • Ibese 6MTPA • Gboko 4MTPA

• $2.45bn revenue• $1.45bn EBITDA, 59% margin• Net debt $693m; 0.48x EBITDA• Market share of 63% at end of year

• Work continuing on new Nigerian capacity, anticipating strong market growth

• Obajana +3MTPA by Q4 2014• Ibese +6MTPA by Q4 2014

• Work underway on African capacity and import/export facilities

End 2017

$2.45bn revenue$1.45bn EBITDA

End 2014

42MTPA capacity

• Nigerian capacity increased to 29MTPA, strong market growth anticipated

• Obajana 13MTPA• Ibese 12MTPA• Gboko 4MTPA

2013 Highlights:• $2.45bn revenue• $1.45bn EBITDA, 59% margin• Net debt $693m; 0.48x EBITDA• Market share of 63% at end of year

• Work underway on African capacity to be completed end 2014

• South Africa • Ethiopia • Zambia (1) • Senegal • Cameroon • Sierra Leone • Ghana

62MTPA capacity

• Nigerian capacity 38MTPA • Obajana 13MTPA• Ibese 12MTPA• Gboko 4MTPA• Sagamu 6MTPA• New Benue 3MTPA

• Large scale producer with superior profitability and strong cash generation

• Additional capacity across Africa• Zambia (2) 1.5MTPA• Tanzania 3.0MTPA• Kenya 1.5MTPA• Cote d’Ivoire 1.5MTPA• Liberia 0.5MTPA• Ghana Takoradi 1.5MTPA• Congo Brazzaville 1.5MTPA

• Operations in 13 countries• Trading operations in others• Export strategies fully operational,

trading within Africa’s Trade Zones • Operating in robust, growth markets• Well-diversified regional exposure• Leading Sub-Saharan African producer

4.2MTPA2.5MTPA1.5MTPA1.5MTPA1.5MTPA0.5MTPA1.0MTPA

The opportunity

14

400m

1,265m622m

927m

0

500

1,000

1,500

2,000

2,500

2010 2050

Urban Rural

Africa’s population

Sources: United Nations World Urbanisation Prospects, 2012

By 2050 the urban population of Africa

will grow by an estimated 865m

people.

That is 2.7x the current population of

the United States.

Limestone map of Africa

Africa’s demand drivers

• Increasing political & economic stability

• Robust GDP growth across Africa

• Emerging middle class, consumerisation

• Steady population growth, younger profile

• Rapid urbanisation

• Serious housing deficits

– e.g. Nigeria: 18m shortage, at estimated $375bn building cost

• Massive drive for infrastructure investment

• Strengthening financial services

• Increasing inward investment

• Rapid technological adoption

• Unlocking natural resources

• Increased manufacturing for export

15

(By courtesy of Ian Osburn, Cantor Fitzgerald)

Malawi

Ethiopia

Liberia

Zambia

Cote d'IvoireCameroon Rep. Congo

Nigeria IndonesiaGhana

Benin

Senegal

Colombia

South Africa

India Serbia Gabon Brazil

Morocco Algeria

Egypt

China

10

100

1,000

0 2,000 4,000 6,000 8,000 10,000 12,000

Cement consumption and GDP

Significant demand upside

History shows that demand forcement rises rapidly when GDPtakes off from a low base asnations build out theirtransport, business andhousing infrastructures.

Most countries in sub-SaharanAfrica are in the early stages ofthis growth curve, whichtypically breaks through theaverage in the build-up phase,peaking at around 600kg-700kg, before settling backtowards an average of 400kg in40 years.

Global per-capita average

513kgNigeria consumes

per capita

126kg16

Per capita cement

consumption (kg, log scale)

GDP per capita(current US$, before rebase)

Operator Plant Capacity

Dangote Ibese 6.0

Dangote Obajana 10.25

Dangote Gboko 4.0

Lafarge Wapco

Ewekoro, Shagamu

4.2

Ashakacem Gombe 0.9

Unicem Calabar 2.5

Sokoto Sokoto 0.6

Nigeria’s market strengths

• Strong, sustained GDP growth of around 7%

• Africa’s largest population 170m, rising at 2.6%

• Rapid urbanisation and housing need

• Good commitment to infrastructure spending

• 5-year tax breaks for new factories

• Import protection

• Adequate limestone and other resources

• Attractive cement pricing - $175/tonne

• Standardised around 42.5 grade for building

• Availability of low-cost natural gas near cities

• Above-average 10.9% CAGR since 2004

• High upside on 126kg per-capita consumption

• Export incentives available

• Ideal location for duty-free exports into ECOWAS

17

Nigerian market growth

18

• Market growing at average 10.9% from 2004-2013

• But H1 2014 constrained by gas / LPFO shortages leading to supply problems

• Strong demand evidenced in good forward order book

• Nigeria’s monthly cement shipments have grown at an average of 10.6% since January 2011, when compared with the previous year (2011-2013)

• The market grew in 32/36 months from 2011-2013

• In the same period, Dangote Cement’s monthly growth has been 20.9% as new capacity enabled gains in market share

• Dangote Cement has exceeded the market’s growth in 32/36 months from January 2011 – December 2013

• Only 2/36 months saw reductions compared with the prior year

0

5

10

15

20

25

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Manufactured Imported

Growth in Nigerian cement sales, 2004-2013 (million tonnes)

Source: Dangote Cement estimates

Seasonal trends in Nigerian cement sales, 2010-2014 (000 tonnes)

Source: Dangote Cement estimates

1,100

1,300

1,500

1,700

1,900

2,100

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

FY 2014 FY 2013 FY 2012 FY 2011 FY 2010

0

10

20

30

40

50

60

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Dangote Others 8% 10% 12% 14%

Strong market position

19

• Per-capita consumption of cement is very lowin Nigeria, at about 126kg/person

• Total production capacity for all Nigeriancement producers could be about 48-50 milliontonnes by the end of 2018, based on currentlyvisible projects for which we believe fundinghas definitely been committed. Actualproduction will depend on completion ofbuilding and speed of ramp-up in 2014-18

• Some producers are already reaching peakproduction, meaning they cannot grow withoutinvestment

• Even assuming just 10% CAGR in demand forcement and 100% utilisation rates, Nigeriandemand for cement could outstrip this plannednew capacity by 2022/3

• At faster demand growth or lower utilisationrates, Nigeria will need new capacity evenearlier, perhaps as early as 2018

• Nigeria needs to build a new 2.5MTPA plantevery year at current rates of growth

Dangote Cement estimates, market information

Estimated Nigerian production capacity and demand evolution (MTPA)

Export potential

70% share of capacity if no other plants built

Consumption growthCapacity

• Economic Community of West African States

– 15 countries, >310m people, (800m by 2050)

– Ave. 7% GDP growth forecast in target countries

– Strong demand driven by infrastructure, housing

– Many states lack limestone, obliged to import

– Attractive cement pricing across the region

– Average 114kg per capita cement consumption

• Attractive trading within ECOWAS FTZ, CEMAC

– Duty free trading between members

– High tariffs on imports from non-member states

– Cash incentives available when exporting from Nigeria

• Able to reach 19 countries – 1/3rd of Africa

• Supply the region with clinker / bulk exports from Nigeria, Senegal

– Clinker benefits from easier transport and lower tax, and adds manufacturing value in target country

• Region’s leading producer

– 41MTPA integrated production capacity by H2 2016, across Nigeria, Senegal, Congo

– 5MTPA grinding capacity by H2 2015: Cote d’Ivoire, Ghana, Cameroon, Liberia

– 1.5MTPA terminal capacity by Q4 2014

– Building export terminals in Nigeria

Strategy: West & Central Africa

20

Key

Integrated plant

Grinding plant

Import terminal

West & Central Africa

21

CountryCement Capacity

Type CapexCapex/tonne

Operational Strategy

Cameroon 1.5 MTPA Grinding $140m $93 Q4 2014Supply with clinker from Nigeria, serve local market and export to Chad, CAR, Gabon

Rep. Congo 1.5 MTPA Integrated $301m $201 H2 2016Serve domestic and export markets, including Cabinda in Angola and Kinshasa region of DRC (Katanga, Lumumbashi to be supplied from Zambia)

Cote d’Ivoire

1.5 MTPA Grinding $100m $67 H2 2015Supply clinker from Senegal, Nigeria and reach previously underserved interior regions

Ghana1.0 MTPA1.5 MTPA

TerminalGrinding

-$100m

-$67

OperatingH2 2015

Large deficit market; augment existing Tema import terminal with new grinding facilities at Tema andTakoradi

Liberia 0.5MTPA Grinding $75m $150 H2 2015Supply from Senegal plant to serve mostly domestic consumption

Senegal 1.5 MTPA Integrated $307m $205 Q4 2014Use as production base to feed coastal importers e.g. Liberia, Sierra Leone

Sierra Leone

0.7 MTPA Terminal $45m $90 Q4 2014Supply bulk cement from Senegal plant to serve mostly domestic consumption

Benin, Togo, Chad, Burkina Faso, NigerSmall but growing markets that will be supplied bulk and bagged cement from operations in Nigeria and elsewhere, through relationships with local distributors

Strategy: Eastern & Southern Africa

• Operations in five countries– Eastern/Southern Africa population of 400m (868m by 2050) – Low urbanisation, 32% average– Low average per-capita cement consumption of 102kg

• Access to more than nine additional countries

• Good growth potential across the region

• Adequate availability of other additives, hence ableto manage cost of production

• Enter markets with new, highly efficient plants ableto compete with older facilities on lower productionand maintenance costs, lower power consumption,higher cement output

• Most Dangote Cement plants to be sited inland,where pricing is higher, away from imports

• Within COMESA trading region

• Region’s leading producer – 14.2 MTPA integratedproduction capacity by H1 2017.

22

Key

Integrated plant

NB. Plans on hold in South Sudan

Eastern & Southern Africa

23

CountryCement Capacity

Type CapexCapex/tonne

Operational Strategy

Ethiopia 2.5 MTPA Integrated $469m $188 Q4 2014Compete in mostly local market enjoying good economic growth and high investment in infrastructure

Kenya1.5 MTPA

(TBC)Integrated $300 $200 H1 2017

Initially conceived as a Grinding plant but have been revised into an Integrated plant due to favourable market conditions and the discovery of good quality limestone. Compete in mostly local market enjoying good economic growth and high investment in infrastructure, energy

South Africa

Combined 4.2 MTPA

Integrated Grinding

$326m $100 OperatingEnter local market that has aging plants, compete with new, more efficient technologies that reduce costs. JV with Sephaku Holdings, which owns 36%

Tanzania 3.0 MTPA Integrated $453m $151 H2 2015Attractive pricing and high upside on low per capita use; export potential to landlocked countries

Zambia 1.5 MTPA Integrated $300m $200 Q4 2014Size of plant enables good share of market on entry, serving local and export markets

Improving Governance

• Appointment of new Independent Directors

– Fidelis Madavo, Public Investment Corporation of South Africa

– Emmanuel Ikazoboh (Former Sole Administrator of the Nigerian Stock Exchange)

– Ernest Ebi (Former Deputy Governor of the Central Bank of Nigeria)

• Active Investor Relations programme

– 200+ investor meetings ytd

– DCP ranked 8/78 in Extel Survey of Pan-European Construction & Building Materials Sector

– Dangote Industries Investor Day on 25th September

• Risk Management a priority

– In-house Risk Management team headed by Group Chief Risk Officer

– Working with UK-based consultants to identify key risks and develop mitigation plans

– Risk review already carried out – classify, quantify and prioritise risks

– Creation of Risk Management Framework to align DCP with international best practices

– Developing Scenario Analysis tools to assist Risk Management

24

Sustainability

Dangote Group is strengthening its sustainability management systems to ensure group-wide observance of International Finance Corporation Performance Standards

• Appointed Environmental Resources Management to guide the process

• Road map includes:

– Establishment of a Sustainability (Environment, Health & Safety and Social) Directorate

– Revision and standardization of sustainability policies and procedures across the group

– Capacity building and training to strengthen sustainability practice

25

Appendix

26

The following details on African projects contain estimates gathered from several sourcesincluding Dangote Cement, KPMG, Global Cement Report and the IMF.

Capacity and consumption charts are based upon GCR and Dangote Cement estimates of howcapacity will develop in each country, based on projects currently visible and where acommitment to build has been made. Estimates of consumption are based upon GCR estimatesto 2014, beyond which growth has been extrapolated at 8%, 10%, 12% and 14%.

Project start times are estimates based upon current progress and expectations.

Cameroon – Q4 2014

27

Economic & Demographic

Population 20.9m Growth rate 2.2%

Urbanisation 49% GNI / capita $2,270

GDP Growth

2013E 2014E 2015E 2016E 2017E

5.4% 5.5% 5.8% 5.8% 5.8%

Cement market

Consumption 1.5 MTPA Production 0.94 MTPA

Import/Export0.4 MTPA / 0.05 MTPA

Capacity / Plants 1.6MTPA / 2 Gr

Price per tonne $190 Per capita cons. 66kg

Key incumbents Cimenteries du Cameroun

Market attractions

• No limestone, deficit market • Good reserves of Pozollana additive

• Upside from low per-capita use • Significant 10-year tax incentives

• Supply with clinker from Nigeria • Export potential to Chad, CAR, Gabon

Project Details

Capacity Type Primary fuel Location

1.5MTPA Grinding N/A Douala

Operational H2 2014 Capex cost $105m

Target EBITDA % 53% - 61% Target markets Mostly domestic

0

1

2

3

4

5

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Capacity (mta) 8% 10% 12% 14%

Source: Global Cement Report estimates, Dangote Cement estimates

Estimated capacity and demand evolution

Source: Global Cement Report estimates, Dangote Cement estimates, IMF estimates

Republic of Congo – H2 2016

28




GDP Growth

2013E 2014E 2015E 2016E 2017E

5.9% 6.4% 20.4% 2.5% 8.7%

Cement market



Capacity / Plants 0.2MTPA / 1


Key incumbents Societe Nouvelle des Ciments

Market attractions

• Ideally located for export to Kinshasa, in DRC, and to Cabinda in Angola

• Duty free movement in CEMAC zone • Attractive cement pricing

• 7-year tax incentives • Sub-scale competitors

Project Details


1.5MTPA Integrated Coal Madingou

Operational April 2016 Capex cost $301m

Target EBITDA % 50% - 58% Target markets Domestic/Export

0

1

2

3

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Capacity (mta) 8% 10% 12% 14%




Cote d’Ivoire – H2 2015

29




GDP Growth

2013E 2014E 2015E 2016E 2017E

7.9% 7.9% 8.1% 7.3% 7.9%

Cement market



Capacity / Plants 2.5MTPA / 4 Gr


Key incumbents Amida, Holcim, Ciments d’Afrique

Market attractions

• Good potential in interior regions • 5-year tax incentives

• No limestone, reliant on imports • Strong potential for economic growth

• Attractive cement pricing • Supply cement from Senegal, Nigeria

Project Details


1.5MTPA Grinding N/A Abidjan

Operational June 2016 Capex cost $100m



0

1

2

3

4

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Capacity (mta) 8% 10% 12% 14%



Ghana – H2 2015

30




GDP Growth

2013E 2014E 2015E 2016E 2017E

7.3% 6.5% 6.7% 5.7% 5.7%

Cement market

Consumption 5.2 MTPA Production (Gr) 4.6 MTPA


Capacity / Plants6.7MTPA / 4Gr+1Im


Key incumbents Ghacem, WACEM, Dangote GreenView

Market attractions

• No limestone, reliant on imports • Increasing infrastructure investment

• High and increasing demand gap • Supply from Ibese, 300km away

• Strong economic growth from oil / gas • 100% duty exemption on machinery

Project Details


1.0 MTPA, 1.5MTPA

Import, Grinding N/A Tema, Takoradi

Operational 2015/6 TBC Capex cost TBC


0

2

4

6

8

10

12

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Capacity (mta) 8% 10% 12% 14%




Liberia – H2 2015

31



Urbanisation 47% GNI / capita $340

GDP Growth

2013E 2014E 2015E 2016E 2017E

7.2% 4.5% 7.5% 6.0% 5.7%

Cement market



Capacity / Plants 0.5MTPA / 2 (Gr)


Key incumbents Cemenco

Market attractions

• Increasing stability and growth • Rapid increase in cement sales

• Debt forgiveness spurs investment • No import tariffs on cement

• Slight deficit market • No limestone, supply from Senegal

Project Details


0.5MTPA Import N/A Monrovia

Operational TBC Capex cost $44m


0.0

0.5

1.0

1.5

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Capacity (mta) 8% 10% 12% 14%




Senegal – Q4 2014

32




GDP Growth

2013E 2014E 2015E 2016E 2017E

4.2% 4.5% 4.7% 4.8% 5.0%

Cement market





Key incumbents Sococim, Ciments du Sahel

Market attractions

• Good limestone resources • Ease of export along West African coast

• Steady growth in domestic demand • Duty-free trading In ECOWAS FTZ

• Bordered by states lacking limestone • 7-year tax breaks

Project Details


1.5MTPA Integrated Coal Pout


Target EBITDA % 32% - 40% Target markets Mostly export


0

2

4

6

8

10

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Capacity 8% 10% 12% 14%



Sierra Leone – Q4 2014

33



Urbanisation 40% GNI / capita $830

GDP Growth

2013E 2014E 2015E 2016E 2017E

17.1% 14.2% 12.2% 4.2% 4.3%

Cement market



Capacity / Plants 0.5MTPA / 1 (Gr)


Key incumbents Sierra Leone Cement Corp.

Market attractions

• Strong economic growth from low base as country benefits from mining boom

• High foreign investment in infrastructure, particularly to support mining

• No native limestone • Supply bulk cement from Senegal

Project Details


0.7MTPA Import & bagging N/A Freetown

Operational Q4 2014 Capex cost $40m


0.0

0.5

1.0

1.5

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Capacity (mta) 8% 10% 12% 14%




Ethiopia – Q4 2014

34


Population 87m Growth rate 2.1%


GDP Growth

2013E 2014E 2015E 2016E 2017E

6.5% 6.5% 6.5% 6.5% 6.5%

Cement market





Key incumbents Derba, Mugher, Messebo, NSCS, Ture Diredawa, Ethio Cement

Market attractions

• Large population, strong growth • Upside from low per-capita use

• 2-year tax incentives • High infrastructure investment

• Export potential • Availability of Pozollana

Project Details


2.5MTPA Integrated Coal Mugher

Operational December 2014 Capex cost $470m


0

5

10

15

20

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Capacity 8% 10% 12% 14%




Kenya – H1 2017

35


Population 43m Growth rate 2.7%


GDP Growth

2013E 2014E 2015E 2016E 2017E

6.1% 6.3% 6.0% 6.9% 5.5%

Cement market





Key incumbents Bamburi, Savannah, East African PC, ARM, Mombasa, National

Market attractions

• Solid economic growth, oil discovery • Potentially large infrastructure spend

• Encouraging PPP investment • Major energy projects, inc. nuclear

• Large housing deficit • Upside from low per-capita use

Project Details


1.5 MTPA Integrated Coal Near Nairobi


Target EBITDA % TBC Target markets Domestic, export

0

5

10

15

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Capacity (mta) 8% 10% 12% 14%




South Africa – Operational

36




GDP Growth

2013E 2014E 2015E 2016E 2017E

2.4% 3.5% 3.8% 2.9% 3.2%

Cement market





Key incumbents PPC, Afrisam, Lafarge, Intercement

Market attractions

• Aging incumbent plants not as efficient as modern plants, esp. as energy costs rise

• Enter market with more efficient tech. • Availability of fly ash on long contract

• Proximity to Jo’burg, key NE markets • Resurgent infrastructure spending

Project Details


3.3MTPA combined

Integrated, grinding Coal Aganang/ Delmas

Operational Operational Capex cost $326m

Target EBITDA % 39% - 45% Target markets Domestic, export

0

5

10

15

20

25

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Capacity (mta) 8% 10% 12% 14%




0

2

4

6

8

10

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Capacity (mta) 8% 10% 12% 14%

Tanzania – H2 2015

37




GDP Growth

2013E 2014E 2015E 2016E 2017E

6.9% 7.2% 7.0% 6.9% 6.8%

Cement market





Key incumbents Tanzanian Portland Cement, Tanga Cement, Mbeya Cement

Market attractions

• Availability of low-cost gas fuel • High pricing

• Upside from low per-capita use • Strong economic growth

• Proximity to nine other countries, some landlocked, duty-free exports in COMESA

Project Details


3.0MTPA Integrated TBC Mtwara

Operational November 2015 Capex cost $452m

Target EBITDA % 62% - 70% Target markets Domestic, export




Zambia – Q4 2014

38




GDP Growth

2013E 2014E 2015E 2016E 2017E

7.8% 8.0% 7.7% 7.9% 7.5%

Cement market





Key incumbents Lafarge Cement Zambia, Zambezi Portland Cement, Scirocco

Market attractions

• Attractive cement pricing • Strong economic growth

• Ideal location for exports into mining regions of DRC, as well as Angola + others

• Upside from low per-capita cement use

Project Details


1.5MTPA Integrated Coal Ndola

Operational Q4 2014 Capex cost $300m

Target EBITDA % 57% - 65% Target markets Export, domestic

0

1

2

3

4

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Capacity (mta) 8% 10% 12% 14%




Investor relations

39

For further information contact:

Carl FranklinChief Investor Relations OfficerDangote Industries

+44 207 399 3070+44-7713 634 [email protected]

www.dangcem.com

@DangoteCement

Uvie IbruInvestor RelationsLondon

+44 207 399 3070+44 7747 027 [email protected]

Ayeesha AliyuInvestor RelationsLagos

+234 1 448 0815

[email protected]

mailto:[email protected]

http://www.dangcem.com/



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