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Unaudited results for the three months ended 31st March 2015
Good revenue growth as African factories come online, earnings boosted by improved gas
supply and reallocation of production to tax-free facilities
Lagos, 5th May 2015: Dangote Cement PLC (DANGCEM-NL), Nigeria’s largest cement producer,
announces unaudited results for the three months ended 31st March 2015.
Financial highlights






Revenue up 10.8% to ₦114.7bn with maiden Q1 contributions from non-Nigerian factories
Gross profit up 10.5% to ₦74.7bn, 65.1% margin
EBITDA up 13.9% to ₦72.0bn, 62.8% margin
Net profit up 44.1% to ₦68.6bn
Earnings per share up 45.7% to ₦4.09
Net debt reduced to ₦180.7bn from ₦222.0bn at 31st December 2014
Operating highlights





Group cement sales volumes up 3.4% to 3.8 million tonnes
Contributions from South Africa, Senegal, Cameroon and new lines in Nigeria
Nigeria margins increased by new pricing, improved gas supply and more use of coal
Zambia, Ethiopia now in production, commercial sales expected from this month
Gboko reopened in April 2015 to meet local demand
Onne van der Weijde, Chief Executive, said:
“Our African projects are now beginning to deliver revenue growth for the Group and even at this early
stage we are seeing good potential in all the countries into which we are expanding. Senegal has made
an excellent start, Cameroon is poised for a strong entry into an exciting growth market and Sephaku
Cement is clearly shaking up the South African market as the first new entrant in many years.”
“Although sales fell in Nigeria, we improved both revenues and margins thanks to pricing actions in
December following the collapse of the oil price and currency devaluation. We are making a significant
investment to improve our logistical capabilities and I am pleased to report a much more favourable
fuel supply in the first quarter of 2015.”
“We have invested for growth in Africa and each new factory that opens will generate good returns for
shareholders as we deliver on our promise to become Africa’s leading cement company.”
1
About Dangote Cement
Dangote Cement is Africa's leading cement producer with three plants in Nigeria and recently opened
factories in South Africa, Senegal and Cameroon.
We are a fully integrated quarry-to-customer producer with production capacity of 29 million tonnes in
Nigeria at the end of 2014. Our Obajana plant in Kogi state, Nigeria, is the largest in Africa with 13.25
million tonnes capacity across four lines. The Ibese plant in Ogun State has four cement lines with a
combined installed capacity of 12 million tonnes. The Gboko plant in Benue state has 4 million tonnes
capacity. Through our recent investments, Dangote Cement has eliminated Nigeria's dependence on
imported cement and is transforming the nation into an exporter serving neighbouring countries.
In addition, we are investing several billion dollars to build manufacturing plants and import/grinding
terminals across Africa. We have operational facilities in Senegal (1.5mt), South Africa (3mt), Cameroon
(1.5mt) and Ghana (1mt import facility), and are building integrated plants in Ethiopia (2.5mt), Zambia
(1.5mt), Tanzania (3mt), Rep. Congo (1.5mt) and Kenya (TBC). We plan to build import or grinding
facilities in Sierra Leone (0.7mt), Ghana (1.5mt), Cote D’Ivoire (1.5mt) and Liberia (0.7mt)
Web: www.dangcem.com
Conference call details
A conference call for analysts and investors will be held on Tuesday 5 May at 16.00 Lagos/UK time
The dial-in details for participants are as follows:
Pin code: 121890#
Nigeria Toll Free: 0800 1234 646
Nigeria Local: +234 (0) 1440 5158
UK Local: +44 (0) 207 043 4129
UK Toll free: 0800 327 7280
USA Local: +1 646 663 7922
USA Toll Free: +1 866 840 9752
South Africa Toll Free: 0800 982 759
A replay facility will be available on the same numbers for 30 days:
Playback code: 461938 #
Contact details
Carl Franklin
Chief Investor Relations Officer
Dangote Industries
Uvie Ibru
Investor Relations
London
Ayeesha Aliyu
Investor Relations
Lagos
+44 207 399 3070
+44 207 399 3070
+234 1 448 0815
[email protected]
[email protected]
[email protected]
2
Operating review
Group performance
Group sales of cement rose by 3.4% to nearly 3.8 million tonnes in the first quarter of 2015. Sales in
of cement in Nigeria accounted for 81.8% of all Group volumes shipped, following the commissioning
of new plants in South Africa, Senegal and Cameroon.
Summary of Group sales
Regional revenues
Nigeria
West & Central Africa
South & East Africa
Total revenues
31/3/15
₦bn
101.4
4.7
8.7
114.7
31/3/14
₦bn
99.8
3.0
0.8
103.6
Volumes
Nigeria
West & Central Africa
South & East Africa
Total cement sold
31/3/15
‘000 tonnes
3,103
227
462
3,792
31/3/14
‘000 tonnes
3,473
154
39
3,666
Nigeria
Market relatively stable despite election delay
We estimate the total market for cement in Nigeria to have been approximately 5.4 million tonnes in
the first quarter of 2015, slightly lower than the 5.5 million tonnes sold in the same period of 2014. We
believe that the delay to the General Election was a significant factor causing some uncertainty that in
turn affected decisions to buy cement for building.
Nigeria's importation of cement remains low and we estimate that just 352,000 tonnes of cement were
imported during Q1 2015, only slightly higher than the 338,000 tonnes imported in the same period
last year.
In March, we raised the ex-factory price of cement to ₦1,630 per bag of 42.5-grade cement (excluding
VAT), which equates to ₦32,600 per tonne. For most of the first quarter, pricing was at ₦1,537/bag,
following a realignment of pricing in December 2014 that helped to protect margins in Nigeria from the
additional cost of importing materials and fuel following devaluation of the Naira.
Almost all sales of cement during the quarter were from Obajana and Ibese. Volumes of cement shipped
to customers fell by 10.7% to 3.1 million tonnes in Q1 2015, which represents approximately 58% of
total Nigerian market sales. The fall is attributable to delayed price increases by a competitor, following
our own price increase in December, which resulted in a temporary shift in market share in the first
few weeks of the year. In addition, we experienced some logistical issues, particularly in the South
region, that hindered shipments to customers. We have already invested in new vehicles and expertise
to ensure more efficient distribution in the coming months.
Obajana improves sales slightly as gas supply improves
Our flagship plant at Obajana, in Kogi State, achieved sales of 2.0 million tonnes (Q1 2014: 1.9mt).
The gas supply to Obajana was substantially improved at 92% in the first quarter of 2015, compared
with 68% in the previous year. We expect a much more stable gas supply at Obajana in 2015. The
improved gas supply as well as new coal facilities at Obajana helped reduce LPFO use from 32% to
3
7%, with a beneficial impact on margins at the plant. We expect to complete coal facilities for lines 1,
2 and 4 later in 2015 and this will eliminate the plant’s need to use the more expensive LPFO as a backup fuel to gas.
Ibese sales increase
All four lines are operational at Ibese and the plant sold more than 1.1 million tonnes of cement in the
first quarter of 2015, a 19% increase on Q1 2014.
Although gas utilisation fell slightly from 92% in Q1 2014 to 85% in the first quarter of 2015, the new
coal facilities reduced LPFO use to zero in the quarter. We have begun work on coal grinding facilities
for Ibese's new Lines 3&4 and expect this work to be completed in the second half of 2015.
Gboko reopens to serve local market
In November 2014, having brought onstream nine million tonnes of new capacity at the gas-fired Ibese
and Obajana plants, we took the decision to mothball the plant and shift its production to those highermargin factories. The plant sold just 13,000 tonnes of cement during the quarter, from existing stocks.
To meet the growing demand in its catchment area, the Gboko plant was re-opened in April 2015.
Update on switch of back-up fuel to coal
Although gas remains our primary fuel of choice at Obajana and Ibese, we are continuing to build coal
mills at both plants so that we can substantially reduce and even end our dependence on Low-Pour
Fuel Oil (LPFO) as a back-up fuel. LPFO is four times more expensive than gas per tonne of finished
cement, but imported coal is only 2x more expensive than gas per tonne of finished cement.
In the final quarter of 2014 we commissioned coal facilities to serve Lines 1&2 at Ibese and Line 3 at
Obajana. As has been reported, these new facilities helped us to reduce the use of back-up LPFO in
the first quarter of 2015. We are continuing to build coal facilities at Ibese Lines 3&4 and Obajana Lines
1,2&4 so that they too can switch to coal in the event that the gas pressure drops. We expect this work
to be completed by November 2015.
Our Gboko plant is also being converted to run using coal as the primary fuel, instead of the LPFO used
at present, because there is no gas supply anywhere near the factory. Again, we expect this work to
be completed in November 2015, substantially improving Gboko’s profitability upon conversion. In
addition we are installing 3x30MW coal-fired power plants so that by 2016, Gboko will be able to operate
at much more competitive cost levels.
To date the coal we have used at all plants has been imported. However, we are developing a strategy
to mine coal near the Obajana and Gboko plants and we believe this locally mined coal will be very
competitive with gas in terms of pricing.
West & Central Africa
Solid starts in Senegal and Cameroon
Our West & Central Africa region sold a total of 227,000 tonnes from its facilities in Ghana, Senegal
and Cameroon (Q1 2014: 154,000).
The new 1.5mt factory in Senegal has made a solid start and we expect it to ramp up production and
sales in the coming months. Its 42.5-grade cement has been received well by the market, which has
previously been served with mostly 32.5-grade cement, and we have seen a good increase in demand
since the quarter ended.
Ghana remains a challenging market because of currency devaluation and competitor imports, although
the country returned more than half of regional sales during the quarter. We are continuing to improve
facilities at our import and bagging facility in Tema and have appointed a new Plant Director, Mr Tor
4
Nygard, who has many years’ experience in the West African cement market, notably spending ten
years as Managing Director of Ghacem. The improvements at Tema include larger storage siloes and
additional packing lines to enable more throughput of trucks. We expect the facility’s upgrade to be
completed in July. In addition, we have now finalised the contract to build the 1.5 million tonne grinding
plant that will be established at Takoradi, further along the coast.
Our new 1.5 million tonne cement-grinding facility in Cameroon began operation in March and therefore
made a small contribution to regional volumes sold during the quarter. However, we are pleased with
the demand we have experienced so far and the positive response to our 42.5-grade cement. In 2014,
Cameroon banned the importation of bulk cement and this leaves a potential shortfall or a million
tonnes that can be substituted with locally ground product made from imported clinker.
Initially the plant has been using purchased clinker but our intention is to supply it with clinker from
Nigeria. We believe clinker supplied from our own plants will be of much higher quality than purchased
clinker, thereby enabling us to use less clinker to make the same amount of finished cement, when
compared with imported clinkers. This will in turn improve margins at the plant.
South & East Africa
Sephaku continues to make good progress
All regional revenues came from the sale of more than 460,000 tonnes of cement in South Africa,
following a strong entry into the market by Sephaku Cement. This represents a good increase on the
final quarter of 2014, in which about 370kt of cement were sold.
Our 1.5 million tonne plant at Ndola in Zambia has ignited its kiln and is undergoing production trials.
Because of heavy rains in the area we have experienced some waterlogging at Nodola’s quarry but
have secured ample limestone from other Zambian sources in the meantime. Our 42.5-grade cement
has achieved local Standards compliance and will be ready for dispatch to customers later this month.
We are building our own logistical capabilities in Zambia and have also received substantial interest
from local distributors.
At Mugher in Ethiopia our 2.5 million tonne plant is also undergoing commissioning, with the milestone
of kiln ignition having been achieved in April. The plant is connected to grid electricity and stockpiles of
limestone have been built up from our quarry, 4km away. As with Zambia we are building our logistical
and marketing capabilities in advance of commercial sales, which are expected to begin later this month.
Work continues on our 3.0 million tonne plant at Mtwara, Tanzania, which is now expected to open in
the third quarter of this year. The plant will be fuelled by coal, owing to its low cost and ease of import.
As in other countries in the region we will focus on sales of 42.5-grade cement in Tanzania, where percapita consumption is very low at 46kg, according to Global Cement Report Edition X, but which has
been growing at nearly 8% from 2010 to 2013.
We are reviewing plans for Kenya with a view to increasing the scale of our proposed factory from 1.5
to 3.0 million tonnes. This is because we are confident there will be sufficient demand both in Kenya
and neighbouring countries. We have secured a prospecting license and are now in the process of
upgrading it to a mining license.
Outlook for 2015
With uncertainty around the General Election now behind us we are confident that good growth will
return in Nigeria as building work picks up. Our gas supply is significantly better than in 2014 and we
are making substantial investments to improve logistics and back-up fuel capabilities for our plants.
In Africa we will soon enter the Zambian and Ethiopian markets with highly cost competitive factories
that produce superior-quality products for their respective markets. Later this year we will open new
facilities that will strengthen our position as Africa’s leading cement company.
5
Financial review
Summary of financial performance
31/3/15
₦bn
114.7
72.0
Group
Revenue
EBITDA
31/3/14
₦bn
103.6
63.2
EBITDA margin
62.8%
61.0%
Operating profit
58.4
54.6
EBIT margin
50.9%
52.7%
Profit before tax
Net profit
Earnings per ordinary share (naira)
70.2
68.6
4.09
53.0
47.6
2.80
31/3/15
₦bn
1,063.7
401.4
180.7
31/12/14
₦bn
984.7
392.8
222.0
Regional revenues
Nigeria
West & Central Africa
South & East Africa
Total revenues
31/3/15
₦bn
101.4
4.7
8.7
114.7
31/3/14
₦bn
99.8
3.0
0.8
103.6
Volumes
Nigeria
West & Central Africa
South & East Africa
Total cement sold
31/3/15
‘000 tonnes
3,103
227
462
3,792
31/3/14
‘000 tonnes
3,473
154
39
3,666
Total assets
Total liabilities
Net debt
Revenues
The Group’s cement sales volume increased by 3.4% as compared to the 2014 first quarter, with
volumes from Senegal in the West and Central Africa region and Sephaku Cement in the South & East
Africa region offsetting the decrease in volumes in Nigeria. Group revenues increased by 10.8% to
₦114.7bn (2014: ₦103.6bn), mainly due to higher revenues in South Africa and Senegal.
Nigerian cement volumes declined by 10.7% during the first quarter 0f 2015, but average prices
increased by about 13%. Consequently revenues from Nigeria increased by 1.6% from ₦99.8bn during
Q1 2014 to ₦101.4bn for the first quarter of 2015.
In West & Central Africa, Ghana contributed ₦3.1bn, Senegal contributed ₦1.3bn and Cameroon
contributed ₦0.3bn resulting in increased revenue for the region as compared to the 2014 first quarter
revenue all of which was from the Ghana operations.
In South & East Africa, our South African subsidiary Sephaku Cement began production at its Delmas
milling plant in early 2014, with production at the Aganang integrated plant later in the year. Sephaku
accounted for all ₦8.7bn of revenue from the South & East Africa region in the first quarter of 2015,
compared with ₦0.8bn in the first quarter of 2014.
6
Manufacturing costs
31/3/15
₦bn
9.8
10.5
0.1
2.8
9.3
3.5
3.3
0.7
40.0
Materials consumed
Fuel & Power
Royalties
Salaries & related staff costs
Depreciation & amortisation
Plant maintenance
Other production expenses
Decrease in finished goods and WIP
Total manufacturing costs
31/3/14
₦bn
7.4
15.9
0.1
1.7
5.3
2.3
1.2
2.0
35.9
Material costs increased in line with increased production and sales volumes as a result of our
subsidiaries in South Africa and Senegal starting operations during 2014 and 2015 respectively.
Although total production for the group increased, there was a reduction in the fuel & power costs as
a result of improved gas availability at the Obajana plant as well as conversion of some power plants
to run on coal, both of which are cheaper sources of energy compared to the LPFO that was used
during the gas shortages during 2014.
Staff costs increased across the Group as a result of increased staff numbers and the commencement
of operations at Sephaku and our subsidiary in Senegal.
Administration and Selling expenses
31/3/15
₦bn
17.6
Administration and selling costs
31/3/14
₦bn
14.6
Total operating expenses rose by 20.1% to ₦17.6bn, mostly as a result of Sephaku Cement and our
factory in Senegal now being fully operational, as well as non-capitalisable expenses incurred for
projects under construction.
Profitability
Group
EBITDA
Depreciation, amortisation & impairment
Operating profit
31/3/15
₦bn
72.0
(13.6)
58.4
31/3/14
₦bn
63.2
(8.6)
54.6
Regional operating profit
Nigeria
West & Central Africa
South & East Africa
Total operating profit
31/3/15
₦bn
57.3
0.4
0.8
58.4
31/3/14
₦bn
55.6
(0.6)
(0.4)
54.6
The Group posted an operating profit of ₦58.4bn, 7.1% higher than the ₦54.6bn generated in 2014,
with both non-Nigerian regions achieving profitability. The operating margin fell from 52.7% in 2014 to
50.9% in 2015.
7
Operating profits in the Nigerian operations increased by 3.0% to ₦57.3bn while the operating margin
increased from 55.7% in 2014 to 56.5% in 2015. Manufacturing costs of goods sold decreased by
5.2%. The decrease was mainly driven by improved gas availability and the use of coal, a much cheaper
source of energy as compared to LPFO used in 2014 due to poor availability of gas.
In South & East Africa, Sephaku Cement relied on purchased clinker until the commissioning of the
Aganang plant in Q4 2014. Sephaku Cement posted an operating profit of ₦1.3bn. This contributed to
a regional operating profit of ₦0.8bn in South & East Africa, compared to its operating loss of ₦0.4bn
in the first quarter of 2014.
In West & Central Africa, the operating profit of ₦0.4bn in the first quarter of 2015 mainly represents
the results of operations in Senegal, Cameroon and Ghana. Our operations in Senegal started
contributing to revenue during the first quarter of 2015.
Finance income and expense
Interest income
Exchange gain
Total finance income
31/3/15
₦bn
0.7
27.3
28.0
Interest expense
Exchange loss
Less capitalised interest
Total finance costs
6.3
10.1
(0.1)
16.3
31/3/14
₦bn
1.6
0.0
1.6
3.9
0.0
(0.7)
3.2
The Group's interest income decreased due to a reduction in investible surplus funds. Interest expense
increased by 61.5% compared to Q1 2014 due to higher average borrowings. The average effective
interest during the period was 10% (Q1 2014:10%).
The Nigerian Naira fell in value significantly during the first quarter of 2015 resulting in high exchange
gains from assets denominated in foreign currency and losses from liabilities denominated in foreign
currencies including gains from inter-Group assets and liabilities that do not eliminate in full on
consolidation.
The profit before tax was ₦70.2bn, compared with ₦53.0bn for Q1 2014. The reallocation of production
from Gboko to Obajana helped to reduce our tax charge by 71.3% to ₦1.5bn during the quarter, with
a consequent improvement in earnings.
The Group’s profit for the quarter was ₦68.6bn (2014: ₦47.6bn) resulting in earnings per share of
₦4.09 (2014: ₦2.80).
Financial position
Assets and liabilities
31/3/15
₦bn
789.8
88.2
4.0
132.7
49.0
1,063.7
Property, plant & equipment
Other non-current assets
Intangible assets
Current assets
Cash & Bank Balances
Total assets
Non-current liabilities
27.8
8
31/12/14
₦bn
747.8
96.1
3.7
116.5
20.6
984.7
27.9
Current liabilities
Debt
Total liabilities
143.9
229.7
401.4
122.3
242.6
392.8
The balance sheet continues to remain strong with non-current assets increasing from ₦847.6bn at the
end of 2014 to ₦882.0bn at 31 March 2015. This was mainly as a result of increased capital expenditure,
both within Nigeria and in other African countries. Total additions to property, plant and equipment
amounted to ₦58.1bn, of which ₦12.9bn was spent in Nigeria, ₦13.8bn in West & Central Africa and
₦31.4bn in South & East Africa. The gross capital expenditure was partially offset by a depreciation
charge of ₦13.5bn and a fall in prepayments of ₦8.2bn. This resulted in non-current assets increasing
by ₦34.4bn
The increase in current assets was mainly driven by the increase in the stock of spares and fuel as well
as trade and other receivables driven by the new production lines in Nigeria, Senegal and South Africa
and a build-up of inventory for projects nearing completion and about to start production.
The increase in current liabilities was mainly due to a ₦20.8bn increase in trade and other payables.
The increase was mainly attributable to increased advances from customers and trade payables due to
the expansion of our operations.
The increase in equity represents the profit for the period of ₦68.6bn plus a translation gain of ₦1.8bn.
Movement in net debt
As at 31st December 2014
Cash generated from operations before
changes in working capital
Changes in working capital
Income tax paid
Capital expenditure
Other investing activities
Change in non-current prepayments
Net interest payments
Net loans paid
Other cash and non-cash movements
As at 31st March 2015
Cash
₦bn
20.6
89.1
3.6
(58.1)
(0.3)
8.2
(3.7)
(16.3)
5.9
49.0
Debt
₦bn
(242.6)
-
Net debt
₦bn
(222.0)
89.1
16.3
(3.4)
(229.7)
3.6
(58.1)
(0.3)
8.2
(3.7)
2.5
(180.7)
The Group generated cash of ₦89.1bn before changes in working capital. After working capital
adjustment of ₦3.6bn, the net cash flow from operations was ₦92.7bn.
Financing outflows were ₦20.8bn (2014: ₦9.1bn), reflecting additional loans taken of ₦2.5bn, loans
repaid of ₦18.9bn and interest payments of ₦4.4bn. Our borrowings are from financial institutions as
well as from Dangote Industries Limited.
Cash and cash equivalents (including bank overdrafts used for cash management purposes) increased
from ₦16.4bn at the start of the year to ₦44.7bn at the end of the first quarter for 2015. Net debt
stood at ₦180.7bn, a decrease of ₦41.3bn from ₦222bn at 31st December 2014.
We invested ₦58.1bn in projects and normal capital expenditure (2014: ₦37.8bn). The capital
expenditure was mainly associated with the new coal facilities we are building in Nigeria, as well as
expenditure on the production plants under construction in the various African countries.
9
DANGOTE
DANGOTE CEMENT PLC
INTERIM FINANCIAL STATEMENTS
31ST MARCH 2015
DANGOTE CEMENT PLC
31st March 2015
CONTENTS
PAGE
Independent auditor's review report
Condensed consolidated and separate statement of profit or loss and other
comprehensive income
ii
Condensed consolidated and separate statement of financial position
iii
Condensed consolidated and separate statement of changes in equity
iv - v
Condensed consolidated and separate statement of cash flows
vi
Notes to the condensed consolidated financial statements
1 - 13
Deloitte.
Akintola Williams Deloitte
235 Ikorodu Road, Ilupeju
P.O. Box 965, Marina
Lagos
Nigeria
Tel: +234 (1) 271 7800
Fax: +234 (1) 271 7801
www.deloitte.com/ng
INDEPENDENT AUDITOR'S REVIEW REPORT ON INTERIM CONSOLIDATED AND SEPARATE FINANCIAL
STATEMENTS
TO THE MEMBERS OF DANGOTE CEMENT PLC.
We have reviewed the interim consolidated and separate financial statements of Dangote Cement Plc and its
subsidiaries (together "the Group"), contained in the accompanying preliminary report, which comprise the
consolidated and separate statement of financial position as at 31 March 2015 and the consolidated and separate
statements of profit or loss and other comprehensive income, changes in equity and cash flows for the three month
period then ended, and selected explanatory notes.
Directors' Responsibility for the interim consolidated and separate Financial Statements
The directors are responsible for the preparation and presentation of these interim consolidated and separate financial
statements in accordance with the requirements of the International Financial Reporting Standards (IFRS), and the
requirements of the Companies and Allied Matters Act CAP C20 LFN 2004, and for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
The Listings Requirements require consolidated and separate financial statements contained in a preliminary report to be
prepared in accordance with the framework concepts and the measurement and recognition requirements of the
International Financial Reporting Standards (IFRS), and also, as a minimum, contain the information required by
International Accounting Standard (IAS) 34, Interim Financial Reporting.
Auditor's Responsibility
Our responsibility is to express a conclusion on these interim consolidated and separate financial statements. We
conducted our review in accordance with International Standard on Review Engagements (ISRE) 2410, which applies to
a review of historical information performed by the independent auditor of the entity. ISRE 2410 requires us to conclude
whether anything has come to our attention that causes us to believe that the interim consolidated and separate financial
statements are not prepared in all material respects in accordance with the applicable financial reporting framework. This
standard also requires us to comply with relevant ethical requirements.
A review of financial statements in accordance with ISRE 2410 is a limited assurance engagement. We perform
procedures, primarily consisting of making inquiries of management and others within the Group, as appropriate, and
applying analytical procedures, and evaluate the evidence obtained.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance
with International Standards on Auditing. Accordingly, we do not express an audit opinion on these financial statements.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim consolidated and
separate financial statements of Dangote Cement Plc and its subsidiaries for the period ended 31 March 2015 are not
prepared, in all material respects, in accordance with the requirements of the International Financial Reporting Standards
(IFRS), the requirements of the Companies and Allied Matters Act CAP C20 LFN 2004 and also, as a minimum, contain
the information required by International Accounting Standard (IAS) 34, Interim Financial Reporting.
Abraham Udenani, FCA — FRC/2013/ICAN/00000000853
For: Akintola Williams Deloitte
Chartered Accountants
Lagos, Nigeria
29 April, 2015
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by
guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member
firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not
provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and
its member firms.
Akintola Williams Deloitte, a member firm of Deloitte Touche Tohmatsu Limited, is a professional services
organisation that provides audit, tax, consulting, accounting and financial advisory, corporate finance, and
risk advisory services.
Dangote Cement Plc
Condensed consolidated and separate statement of profit or loss and other Comprehensive Income
For the period ended 31st March 2015
Notes
Year ended
31/12/14
3 months
ended
31/03/15
Company
3 months
ended
31/03/14
Year ended
31/12/14
31/03/15
Group
3 months
ended
31/03/14
14'000
f4'000
14'000
t4'000
W000
W000
3 months
ended
Revenue
Cost of sales
3 114,737,108
5 (39,997,279)
103,569,340
(35,936,010)
391,639,060
(143,057,897)
101,370,663
(30,569,274)
99,769,053
(32,229,810)
371,534,117
(128,583,576)
Gross profit
74,739,829
67,633,330
248,581,163
70,801,389
67,539,243
242,950,541
Administrative expenses
6
(6,248,024)
(5,375,866)
(24,084,249)
(4,216,187)
(4,283,520)
(17,364,004)
Selling and distribution expenses
7 (11,347,209)
Other income
8
(9,218,630)
(41,003,586)
(9,479,678)
(9,133,722)
(38,220,532)
1,294,633
1,512,355
3,608,671
164,652
1,498,596
3,541,936
58,439,229
54,551,189
187,101,999
57,270,176
55,620,597
190,907,941
Finance income
Finance costs
9
28,001,322
9 (16,272,811)
1,650,289
(3,187,072)
30,565,122
(32,978,194)
31,999,549
(4,905,526)
3,648,770
(3,246,878)
42,498,705
(20,366,983)
Profit before tax
70,167,740
53,014,406
184,688,927
84,364,199
56,022,489
213,039,663
(1,548,845)
(5,394,530)
(25,187,434)
(1,687,284)
(5,543,027)
(27,225,540)
68,618,895
47,619,876
159,501,493
82,676,915
50,479,462
185,814,123
1,765,226
1,978,521
1,152,198
Profit from operating activities
Income tax expense
11.1
Profit for the period
Other comprehensive income, net of
income tax
Items that may be reclassified
subsequently to profit or loss:
Currency translation differences
Items that will not be reclassified to profit
or loss:
Defined benefit plan actuarial gains (losses)
Other comprehensive income for the period,
net of income tax
449,717
449,717
449,717
1,765,226
1,978,521
1,601,915
Total comprehensive income for the period
70,384,121
49,598,397
161,103,408
82,676,915
50,479,462
186,263,840
Profit for the period attributable to:
Owners of the Company
Non-controlling interests
69,637,713
(1,018,818)
47,784,358
(164,482)
160,578,394
(1,076,901)
82,676,915
50,479,462
185,814,123
68,618,895
47,619,876
159,501,493
82,676,915
50,479,462
185,814,123
71,029,909
(645,788)
49,690,981
(92,584)
161,944,112
(840,704)
82,676,915
50,479,462
186,263,840
70,384,121
49,598,397
161,103,408
82,676,915
50,479,462
186,263,840
4.09
2.80
9.42
4.85
2.96
10.90
Total comprehensive income for the period
attributable to:
Owners of the Company
Non-controlling interests
Earnings per share, basic and diluted (Naira)
10
Dangote Cement Plc
Condensed consolidated and separate statement of financial position
At 31st March 2015
Group
Notes As at 31/03/15
As at 31/12/14
N'000
14'000
Company
As at 31/12/14
As at 31/03/15
W000
ASSETS
Non-current assets
Property, plant and equipment
Intangible assets
12
13
Investments
Prepayments for property, plant and
equipment
14
Deferred tax assets
Other receivables
789,767,871
3,993,103
747,793,820
3,698,535
527,820,258
609,171
526,721,478
682,327
26,077,270
26,077,270
15
71,326,624
79,490,715
1,772,564
1,772,564
11.3
16
16,918,211
16,633,430
13 154,316
327,942,324
13,154,316
277,149,739
882,005,809
847,616,500
897,375,903
845,557,694
36,314,579
Total non-current assets
Current assets
Inventories
17
51,304,192
42,687,840
42,256,050
Trade and other receivables
21,019,548
15,640,277
10,672,869
8,462,728
Prepayments and other current assets
18
19
60,396,874
20
48,996,406
58,348,992
42,848,570
56,756,552
Cash and bank balances
58,182,774
20,593,140
16,349,511
181,717,020
137,104,031
154,126,481
117,883,370
1,063,722,829
984,720,531
1,051,502,384
963,441,064
Total current assets
TOTAL ASSETS
Current liabilities
Trade and other payables
21
121,760,751
100,929,998
97,915,369
80,407,479
Financial debts
22
95,984,799
110,639,898
91,683,848
106,442,007
Current income tax payable
Other current liabilities
11.2
2,617,634
2,481,387
2,616,202
2,481,219
24
19,528,123
18,897,486
18,123,043
16,498,972
239,891,307
232,948,769
210,338,462
205,829,677
133,679,849
131,941,708
94,571,340
95,435,088
2,325,651
2,069,460
2,325,651
2,069,460
22,053,414
20,473,166
21,431,626
19,879,325
Total current liabilities
NON CURRENT LIABILITIES
Financial debts
22
Retirement benefits obligation
Deferred tax liabilities
11.4
Deferred revenue
23
1,279,988
1,389,885
1,279,988
1,389,885
Long term provisions
25
2,222,344
4,011,388
335,288
294,515
119,068,273
Total non-current liabilities
161,561,246
159,885,607
119,943,893
Total Liabilities
401,452,553
392,834,376
330,282,355
324,897,950
Net Assets
662,270,276
591,886,155
721,220,029
638,543,114
EQUITY
Share capital
26
8,520,254
8,520,254
8,520,254
8,520,254
Share premium
26
42,430,000
42,430,000
42,430,000
42,430,000
2,876,642
2,876,642
2,828 497
2,828,497
(2,444,467)
(3,836,663)
Capital contribution
Currency transalation reserve
-
(16,075)
(16,075)
(16,075)
(16,075)
Retained Earnings
607,388,507
537,750,794
667,457,353
584,780,438
Equity attributable to owners of the
Company
658,754,861
587,724,952
721,220,029
638,543,114
3,515,415
4,161,203
662,270,276
591,886,155
721,220,029
638,543,114
1,063,722,829
984,720,531
1,051,502,384
963,441,064
Employee benefit reserve
Non-controlling interest
Total Shareholders equity
TOTAL EQUITY AND LIABILITIES
Onne van der W
Brian Egan
Chief Execu
Group Chief Financial Officer
(iii)
Officer
Dangote Cement Plc
Condensed consolidated statement of changes in equity
For the period ended 31st March 2015
Balance at 1st January 2014
Employee
Currency
Attributable
Non -
Share
Share
Retained
Benefit
translation
Capital
to the owners
controlling
capital
N'000
premium
fif'000
Earnings
N'000
reserve
N'000
reserve
N'000
Contribution
N'000
of the parent
N'000
interests
N'000
8,520,254
42,430,000
Profit for the period
496,455,952
(465,792)
545,064,392
5,028,878
550,093,270
47,784,358
(164,482)
47,619,876
1,906,623
1,906,623
71,898
1,978,521
1,906,623
49,690,981
(92,584)
49,598,397
(24,631)
(24,631)
(4,752,664)
2,876,642
47,784,358
Other comprehensive income for the
period, net of income tax
Total comprehensive income for the
period
47,784,358
N'000
Effect of additional participation in
Group companies
Payment of dividends
Balance at 31st March 2014
8,520,254
42,430,000
544,240,310
(465,792)
(2,846,041)
2,876,642
594,755,373
4,911,663
599,667,036
Balance at 1st January 2015
8,520,254
42,430,000
537,750,794
(16,075)
(3,836,663)
2,876,642
587,724,952
4,161,203
591,886,155
69,637,713
(1,018,818)
68,618,895
1,392,196
1,392,196
373,030
1,765,226
1,392,196
71,029,909
(645,788)
70,384,121
658,754,861
3,515,415
662,270,276
Profit for the period
Other comprehensive income for the
period, net of income tax
69,637,713
Total comprehensive income for the
period
69,637,713
Payment of dividends
Balance at 31st March 2015
8,520,254
42,430,000
607,388,507
(16,075)
(iv)
(2,444,467)
2,876,642
Dangote Cement Plc
Condensed separate statement of changes in equity
For the period ended 31st March 2015
Share
Balance at 1st January 2014
capital
Share
premium
Capital
contribution
Retained
earnings
101000
14'000
14'000
N'000
8,520,254
42,430,000
2,828,497
Profit for the period
518,249,867
Employee
benefit
reserve
N'000
(465,792)
Total
W000
571,562,826
50,479,462
50,479,462
50,479,462
50,479,462
Other comprehensive income for the period, net
of income tax
Total comprehensive income for the period
Payment of dividends
Balance at 31st March 2014
8,520,254
42,430,000
2,828,497
568,729,329
(465,792)
622,042,288
Balance at 1st January 2015
8,520,254
42,430,000
2,828,497
584,780,438
(16,075)
638,543,114
Profit for the period
82,676,915
82,676,915
82,676,915
82,676,915
Other comprehensive income for the period, net
of income tax
Total comprehensive income for the period
Payment of dividends
Balance at 31st March 2015
8,520,254
42,430,000
(v)
2,828,497
667,457,353
(16,075)
721,220,029
Dangote Cement Plc
Condensed consolidated and separate statement of cash flows
For the period ended 31st March 2015
Group
Company
Period ended
31/03/15
Period
ended
31/03/14
Year ended
31/12/14
Period ended
31/03/15
Period
ended
31/03/14
Year ended
31/12/14
Of000
4'000
4'000
4'000
03'000
14'000
Cash flows from operating activities
Profit before tax
70,167,740
53,014,406
184,688,927
84 364,199
56,022,489
Adjustments for:
Depreciation and amortization
Write off of property plant and equipment
Interest expense
Interest income
13,558,612
71,314
6,062,567
(696,277)
8,643,467
36,265,847
1,096,993
18,049,233
(3,147,210)
11,913,987
4,783,789
(4,718,919)
8,386,844
Unrealised exchange loss on borrowings
Exchange gain on non-operating assets
Amortisation of deferred revenue
Other provisions
Provisions for employee benefits
3,157,346
(1,636,825)
1,592,984
954,791
1,592,984
(124,101)
(1,789,044)
257,380
(541,736)
3,634,723
872,873
(26,795,076)
(124,101)
40,773
257,380
(139,328)
140,727
374,324
Loss/(Gain) on disposal of property, plant and equipment
3,217,152
(3,647,545)
(139,329)
11,399
356,899
58,692
213,039,663
34,202,056
1,015,261
16,266,576
(15,139,796)
954,791
(24,267,851)
(541,736)
60,659
872,873
58,692
63,554,117
241,933,133
71,315,016
64,207,909
(8,616,352)
(5,379,271)
19,170,042
(2,214,100)
644,841
92,706,335
(6,626,228)
3,601,949
18,368,548
867,001
(3,328,088)
76,437,299
(15,020,552)
(4,152,186)
16,931,126
(18,536,942)
(5,264,022)
215,890,557
(5,941,471)
(2,210,141)
15,917,295
(1,592,440)
1,638,275
79,126,534
(7,261,287)
3,920,530
17,218,447
791,822
661,530
79,538,951
(12,737,833)
658,112
5,334,762
(19,957,980)
(3,667,538)
196,150,711
(1,189)
(120,143)
(180,777)
(316,336)
(1,189)
(225,936)
(120,143)
(180,777)
(225,936)
89,101,175
226,521,188
Changes in working capital:
Change in inventory
Change in trade and other receivables
Change in trade and other payables
Change in prepayments and other current assets
Change in other current liabilities
Gratuity paid and contribution to plan asset
Income tax paid
Net cash generated from operating activities
92,705,146
76,136,379
696,277
(316,336)
215,348,285
79,125,345
79,238,031
195,608,439
1,636,825
3,147,210
309,184
2,216,319
3,072,605
(83,141)
(37,849,282)
(1,596,321)
(217,192,188)
(12,939,611)
(17,410,251)
(243,893)
(121,796,962)
1,486,613
(8,030)
32,056,788
(76,691,920)
Investing activities
Interest received
Additions to intangible assets
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Acquisition of investment
Changes in non-current prepayment
Increase in long term receivables from subsidiaries
Net cash provided by investing activities
(284,805)
(58,130,882)
1,486,613
9,167,234
-
(19,587,773)
(8,030)
4,277,981
(16,348,868)
(49,555,319)
(27,128,364)
(192,044,822)
(32,218,200)
(27,272,849)
(162,124,799)
(3,057,002)
(2,881,029)
1,528,421
(18,879,505)
9,096,500
(17,817,661)
(14,825,401)
(119,283,552)
132,923,092
(83,391,130)
8,164,091
22,109,864
Financing activities
Interest paid
Dividend paid
Loans obtained
Loans repaid
(4,401,856)
(3,104,705)
2,483,242
(18,879,505)
11,789,468
(17,817,661)
(16,608,058)
(119,283,552)
138,898,479
(83,391,130)
Net cash provided by financing activities
(20,798,119)
(9,132,898)
(80,384,261)
(20,408,086)
(11,602,190)
(84,576,991)
Increase/(decrease) in cash and cash equivalent
Effects of exchange rate changes
22,351,708
5,945,277
39,875,117
2,317,840
(57,080,798)
3,838,371
26,499,059
40,362,992
(51,093,351)
Cash and cash equivalents at beginning of year
16,403,466
69,645,893
69,645,893
16,349,511
67,442,862
67,442,862
Cash and cash equivalents at end of the period
44,700,451
16,403,466
42,848,570
107,805,854
16,349,511
111,838,850
(vi)
Dangote Cement Plc
Notes to the condensed consolidated and separate financial statements
For the period ended 31st March 2015
1 General Information
Dangote Cement Plc ("the Company) was incorporated in Nigeria as a public limited liability company on 4th
November, 1992 and commenced operations in January 2007 under the name Obajana Cement Plc. The name
was changed on 14th July 2010 to Dangote Cement Plc.
Its parent company is Dangote Industries Limited ("DC or "the Parent Company). Its ultimate controlling party is
Alhaji Aliko Dangote.
The registered address of the Company is located at 1 Alfred Rewane Road, lkoyi, Lagos, Nigeria.
The principal activity of the Company and subsidiaries (together referred to as "the Group") is to operate plants for
the preparation, manufacture, and distribution of cement and related products. The Company's production
activities are currently undertaken at Obajana town in Kogi State, Gboko in Benue State and Ibese in Ogun State;
all in Nigeria. Information in respect of the subsidiaries locations is disclosed in note 14.
The consolidated financial statements of the Company for the period ended 31st March 2015 Comprise the
Company and its subsidiaries.
The separate financial statements of the Company for the period ended 31st March 2015 comprise the Company
only.
These condensed consolidated and separate financial statements for the period ended 31st March 2015 have
been approved for issue by the Directors on 29th April 2015
2 Significant accounting policies
The Company's full financial statements for the year ended 31st December 2014 have been prepared in
accordance with International Financial Reporting Standards as issued by the Intematioanl Accounting Standards
Board ("IASB"), and interpretations issued by the International Financial Reporting Interpretations Committee of
the IASB (together "IFRS") and requirements of the Companies and Allied Matters Act (CAMA) of Nigeria and the
Financial Reporting Council (FRC) Act of Nigeria.
Dangote Cement Group Plc has consistenly applied the same accounting policies and methods of computation in
its interim consolidated and separate financial statements as in its 2014 annual financial statements. None of
the new standards, interpretations and amendments, effective for the first time from 1st January 2015, have had a
material effect on the financial statements.
Basis of preparation
These interim consolidated financial and separate statements have been prepared in accordance with IAS 34
Interim Financial Reporting. They do not include all disclosures that would otherwise be required in a complete set
of financial statements and should be read in conjunction with the 2014 annual report.
The financial statements have been prepared on the historical cost basis except for financial instruments that are
measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is
generally based on the fair value of the consideration given in exchange for assets.
Fair Values
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes
into account the characteristics of the asset or liability that market participants would take into account when
pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in
these consolidated financial statements is determined on such a basis, except for leasing transactions that are
within the scope of IAS 17, and measurements that have some similarities to fair value but are not fair value, such
as net realisable value in IAS 2 or value in use in IAS 36.
Basis of Consolidation
The Group condensed financial statements incorporate the financial statements of the Parent Company and its
subsidiaries made up to 31st March 2015. Control is achieved where the investor, (i) has power over the investee
entity (ii) is exposed, or has rights, to variable returns from the investee entity as a result of its involvement, and
(iii) can exercise some power over the investee to affect its returns.
The Company reassesses whether or not it still controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control listed above.
The financial statements of subsidiaries are included in the consolidated financial statements from the date that
control commences until the date that control ceases. The accounting policies of subsidiaries have been changed
when necessary to align them with the policies adopted by the Group.
Income and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated
statement of profit or loss and other comprehensive income from the effective date of acquisition and up to the
effective date of disposal, as appropriate. Total comprehensive income of subsidiaries is attributed to the owners'
of the Company and to the non-controlling interests even if this results in the non-controlling interest having a
deficit balance.
In the Company's separate financial statements, investments in subsidiaries are carried at cost less any
impairment that has been recognised in profit or loss.
Dangote Cement Plc
Notes to the condensed consolidated and separate financial statements
For the period ended 31st March 2015
3 REVENUE
Company
Group
Revenue (Tonnes)
Cement production capacity(per year)
Cement production volume
3 months
ended
31/03/14
'000 tonnes
3 months
ended
31/03/15
'000 tonnes
35,550
20,250
29,250
3,236
3,446
2,708
3,388
142
152
414
3,792
68
3,666
395
3,103
85
3,473
Trade cement purchase
Self cconsumption
(Increase)/decrease in stock of cement
Cement sales volume
3 months
ended
31/03/14
'000 tonnes
3 months
ended
31/03115
'000 tonnes
19,250
An analysis of revenue is as follows:
Company
Group
3 months
ended
31/03/15
14'000
Revenue (Naira)
Revenue from the sale of cement
Revenue from the sale of other products
114,685,552
3 months
ended
31/03/14
N'000
103,475,132
51,556
94,208
114,737,108
Consolidated total revenue
3 months
ended
31/03/15
N'000
101,370,663
101,370,663
103,569,340
3 months
ended
31/03/14
N'000
99,769,053
99,769,053
All sales as detailed above are to external customers
4 Segment Information
Segment revenues and results
The following is an analysis of the Group's revenue and results by reportable segment. Performance is measured based on
segment sales revenue and operating profit, as included in the internal management reports that are reviewed by the Executive
Management Committee. Segment sales revenue and operating profit are used to measure performance as management
believes that such information is the most relevant in evaluating results of certain segments relative to other entities that operate
within these industries.
Group
4.1 Segment Profit & Loss Results
3 months
ended
31/03/15
Nigeria
West & Central
Africa
East & South
Africa
Eliminations
Total
N'000
14'000
14'000
14'000
N'000
(2,766,555)
114,737,108
58,439,229
1,294,633
68,618,895
101,370,663
57,270,176
164,652
Revenue
Operating profit
Other Income
82,676,915
Profit/(loss) after tax
4,688,236
362,554
1,126,835
(10,984,617)
8,678,209
806,499
3,146
(306,848)
Total segment operating profit agrees to the profit from operating activities. A reconciliation of profit from operating activities to
profit before tax is presented on the face of the profit and loss account.
3 months
31/03/14
ended
Nigeria
West & Central
Africa
East & South
Africa
Eliminations
Total
14'000
14'000
t4'000
N'000
1'000
103,569,340
54,551,189
1,512,355
Revenue
Operating profit/(loss)
Other Income
99,769,053
55,620,597
1,498,596
2,977,047
(621,713)
9,666
823,240
(447,695)
4,093
Profit/(loss) after tax
50,479,462
(589,486)
(421,776)
(1,848,324)
47,619,876
4.2 Segment assets and liabilities
2015
Non-current assets
1,051,502,384
114,912,840
266,910,336
(369,602,731)
1,063,722,829
Segment liabilities
330,282,355
149,273,975
249,827,944
(327,931,721)
401,452,553
103,957,167
233,404,818
(316,082,518)
128,391,136
216,723,313
(277,178,023)
2014
Non-current assets
Segment liabilities
963,441,064
324,897,950
984,720,531
392,834,376
Dangote Cement Plc
Notes to the condensed consolidated and separate financial statements
For the period ended 31st March 2015
5
Cost of sales
Group
Material Consumed
Fuel & Power Consumed
Royalty (refer (a) below)
Salaries and related staff costs
Depreciation & amortization
Plant maintainance cost
Other Production expenses
Decrease in finished goods and work in
process
Company
3 months
ended
31/03/15
N'000
3 months
ended
31/03/14
9,784,246
10,500,567
111,150
2,781,584
9,347,947
3,463,656
7,410,738
15,883,131
94,753
1,713,855
5,300,412
2,298,913
4,901,604
9.197,676
107,446
2,107,589
8,126,880
3,158,231
4,069,550
15,788,636
94,753
1,664,130
5,148,480
2,271,927
3,259,375
1,187,245
2,429,976
1,103,166
748,754
2,046,963
539,872
2,089,168
39,997,279
35,936,010
30,569,274
32,229,810
34'000
3 months
ended
31/03/15
tit'000
3 months
ended
31/03/14
N'000
(a) Royalty payable is charged based on volume of extraction made during the period.
6 Administrative expense
Group
3 months
3 months
ended
ended
31/03/14
31/03/15
N'000
N'000
Salaries and related staff costs
Corporate social responsibility
Management fee
Depreciation and Amortisation
Audit fees
Rent, rate and insurance
Travel expenses
Others
2,541,657
143,354
16,010
999,934
50,907
352,875
285,175
1,858,112
2,191,352
332,994
336,510
465,043
65,743
402,740
250,492
1,330,992
6,248,024
5,375,866
Company
3 months
3 months
ended
ended
31/03/14
31/03/15
N'000
34'000
2,015,083
132,334
627,571
42,300
200,635
187,309
1,010,955
1,533,957
327,405
336,510
328,016
56,629
344,223
214,096
1,142,684
4,216,187
4,283,520
7 Selling and distribution
Group
3 months
ended
31/03/14
3 months
ended
31/03/15
34'000
Salaries and related staff costs
Depreciation
Advertisement and promotion
Haulage expenses
34'000
Company
3 months
ended
31/03/14
N'000
3 months
ended
31/03/15
N'000
1,030,302
3,210,731
1,030,220
6,075,956
564,063
2,910,345
662,181
5,082,041
901,289
3,159,536
1,013,378
4,405,475
554,275
2,910,345
614,331
5,054,771
11,347,209
9,218,630
9,479,678
9,133,722
8 Other income
Group
Insurance claims
Government grant
Sundry income
3 months
ended
31/03/15
01'000
17,515
124,101
1,153,017
1,294,633
Company
3 months
ended
31/03/14
N'000
16,416
139,329
1,356,610
1,512,355
3 months
ended
31/03/15
N'000
17,515
124,101
23,036
164,652
3 months
ended
31/03/14
N'000
16,416
139,329
1,342,851
1,498,596
Dangote Cement Plc
Notes to the condensed consolidated and separate financial statements
For the period ended 31st March 2015
9 Finance income and costs
Group
3 months
ended
31/03/15
14'000
Finance income
Interest income
Foreign exchange gains ( Note 9.1)
Finance costs
Interest expenses
Less: amounts included in the cost of qualifying assets
Foreign exchange loss ( Note 9.1)
Others
Company
3 months
ended
31/03/14
N'000
3 months
ended
31/03/15
N'000
3 months
ended
31/03/14
N'000
696,277
27,305,045
28,001,322
1,636,825
13,464
1,650,289
4,718,919
27,280,630
31,999,549,
3,647,545
1,225
3,648,770
6,212,490
(149,923)
3,851,285
(789,926)
4,933,712
(149,923)
3,911,091
(789,926)
6,062,567
10,088,507
121,737
3,061,359
29,726
95,987
4,783,789
121,737
3,121,165
29,726
95,987
16,272 811
3,187,072
4,905 526
3,246,878
The average effective interset rate on funds borrowed generally is 10% per annum for the Group and Company. This is the
average rate for capitalisation.
9.1 Foreign exchange gain or loss arose as a result of the translation of foreign currencies denominated balances at the end of the
period acorss the group. The increase in the current period was due to the depreciation of the respective currencies against
the major foreign currencies at the end of the period.
10
Earnings per share
Company
Group
Profit for the period attributable to owners of the Company
69,637,713
47,784,358
82,676,915
50,479,462
Weighted average number of ordinary shams for the
purposes of basic and diluted earnings per share
17,040,507
17,040,507
17,040,507
17,040,507
4.09
2.80
4.85
2.96
31/03/14
N'000
Income tax
Group
3 months
ended
31/03/14
11.1
3 months
ended
31/03/14
W000
3 months
ended
Basic and diluted earnings per share (naira)
11
3 months
ended
31/03/15
W000
3 months
ended
31/03/15
N'000
Income tax recognised in profit or loss
Current tax expense
Deferred tax credit/(expense)
Prior year tax
Education tax
3 months
ended
31/03/15
N'000
(1,398)
(1,412,464)
9'000
(5,213,752)
(180,778)
(134,983)
Company
3 months
3 months
ended
ended
31/03/15
31/03/14
N'000
W000
(1,552,301)
(5,362,249)
(180,778)
(134,983)
Total income tax recognised in the current period
(1,548,845)
(5,394,530)
Group
Per Balance sheet
11.2
11.3
11.4
31/03/15
N'000
31/12/14
N'000
(1,687,284)
(5,543,027)
Company
31/03/15
31/12/14
N'000
N'000
The movement in the current tax payable account was
as follows:Balance, beginning of the period
Charge for the period
Payments during the period
Arising during the periodlEffect of currency exchange
difference
2.481,387
136,381
2,481,219
134,983
565,737
2,141,418
(225,936)
(134)
1,490
Balance, end of the period
2,617,634
2,481,387
2,616,202
2,481,219
Balance, beginning of the period
Charge for the period
Arising during the period/Effect of currency exchange
difference
16,633,430
139,837
19,635,374
(3,081,406)
13,154,316
144,944
79,462
Balance, end of the period
16,918,211
16,633,430
565,897
2,139,936
(225,936)
The movement in the deffered tax assets account was
as follows:
18,359,111
(5,204,795)
13,154,316
13,154,316
The movement in the deffered tax liabilities account
was as follows:
Balance, beginning of the period
Charge for the period
Arising during the period/Effect of currency exchange
difference
20,473,166
1,552,301
Balance, end of the period
22,053,414
19,966,092
19,879,325
1,552,301
19,879,325
20,473,166
21,431,626
19,879,325
507,074
27,947
Dangote Cement Plc
Notes to the condensed consolidated and separate financial statements
For the period ended 31st March 2015
12 Property, plant and equipment
12.1 Group
Leasehold
Capital
improvements
Plant and
Motor
and Buildings
machinery
N'000
W000
Vehicles
W000
Aircraft
bi'000
Furniture &
Work-In-
Equipment
14'000
Progress
W000
Total
W000
Cost or deemed cost
As at 1st January 2014
Additions
Reclassifications
Other reclassification
35,857,296
320,068,185
51,052,667
1,776,641
248,019,095
656,773,884
773,390
6,006,722
4,509,514
231,107
205,671,455
217,192,188
5,584,764
70,309,366
14,337,358
(30,184)
Disposals
Write-off
Effect of foreign currency exchange
differences
(82,442)
Additions
42,102,824
138,787
Reclassification
24,832,543
Balance at 31st December 2014
(306,898)
4,027,897
379,180
(94,263,786)
(5,381)
(9,821,767)
(9,785,050)
(1,700,878)
(688,132)
-
(2,389,010)
(737,879)
(961,247)
(69,596)
(1,768,722)
(247,522)
(88,000)
(1,563,432)
(1,998,657)
393,391,096
3,576,698
9,789,524
68,541,340
2,011,247
(17,261)
4,027,897
1,989,507
45,089
3,360
692,884
Other reclassification
4,401
347,971,969
52,359,061
(34,625,427)
39,681
858,024,633
58,130,882
732,565
Disposals
Write-off
Effect of foreign currency exchange
differences
Balance at 31st March 2015
(71,314)
(871,294)
(71,314)
422,584
(53,032)
66,202,860
407,801,472
70,502,915
Balance at 1st January 2014
3,803,147
49,883,169
20,857,673
Depreciation expense
Other reclassifications
1,929,449
20,614,407
12,670,214
(7,833)
(2,013,084)
363,692,519
(2,522,659)
4,027,897
2,066,444
914,294,107
764,779
75,308,768
311,196
459,370
35,984,636
Accumulated depreciation
379,180
Disposal
Write off
Effect of foreign currency exchange
differences
Balance at 31st December 2014
Depreciation expense
Other reclassifications
Balance at 31st March 2015
379,180
(181,643)
(662,062)
(843,705)
(34,087)
(637,642)
(671,729)
19,810
14,076
35,760
5,752,406
649,885
70,295,922
8,834,098
692,884
32,643,123
3,766,494
135
311,196
99,318
-
Disposal
Write off
Effect of foreign currency exchange
differences
-
(33,544)
135,884
6,402,426
79,789,360
36,545,501
At 1st January 2014
32,054,149
270,185,016
30,194,994
At 31st December 2014
36,350,418
323,095,174
35,898,217
At 31st March 2015
59,800,434
328,012,112
33,957,414
410,514
4,017
73,663
1,228,166
110,230,813
13,455,816
106,021
39,681
-
732,565
4,567
107,042
1,378,435
124,526,236
Carrying amounts
5
1,011,862
248,019,095
581,465,116
3,716,701
761,341
347,971,969
747,793,820
3,617,383
688,009
363,692,519
789,767,871
Dangote Cement Plc
Notes to the consolidated and separate financial statements
For the period ended 31st March 2015
12 Property, plant and equipment
12.2
Company
Leasehold
Capital
improvements
Plant and
Motor
and Buildings
W000
machinery
W000
Vehicles
W000
Aircraft
W000
Furniture &
Work-In-
Equipment
N'000
Progress
W000
Total
W000
Cost or deemed cost
As at 1st January 2014
Additions
Reclassifications
Other reclassifications
32,687,583
315,496,604
47,161,571
-
1,238,456
128,737,199
525,321,413
37,660
2,578,022
618,093
-
90,690
118,472,497
121,796,962
2,559,162
12,245,292
14,114,603
-
Disposal
Write-off
Balance at 31st December 2014
Additions
-
(306,898)
-
4,027,897
-
4,401
(32,951,355)
(5,381)
(10,281,228)
(10,593,507)
(1,700,878)
(688,132)
-
(2,389,010)
(737,879)
(914,555)
-
(1,652,434)
35,284,405
4,000
327,574,263
60,291,580
1,998,532
3,360
4,027,897
2,350,568
807,951
1,328,166
655
203,977,113
8,585,856
(811,311)
632,483,424
12,939,611
35,288,405
330,732,782
62,293,472
4,027,897
1,328,821
211,751,658
645,423,035
3,769,419
49,085,012
19,854,924
1,812,200
19,437,825
12,071,752
Reclassification
Other reclassification
Disposal
Write-off
Balance at 31st March 2015
Accumulated depreciation
Balance at 1st January 2014
Depreciation expense
Disposal
(181,643)
(662,062)
Write-off
(34,087)
(603,086)
311,196
565,169
73,274,524
335,327
33,968,300
(843,705)
-
(637,173)
5,581,619
470,610
-
68,307,107
7,648,540
-
30,661,528
3,545,486
-
311,196
99,318
-
900,496
76,877
-
6,052,229
75,955,647
34,207,014
410,514
977,373
At 1st January 2014
28,918,164
266,411,592
27,306,647
At 31st December 2014
29,702,786
259,267,156
29,630,052
At 31st March 2015
29,236,176
254,777,135
28,086,458
Balance at 31st December 2014
Depreciation expense
Reclassification
Disposal
-
105,761,946
11,840,831
-
Write-off
Balance at 31st March 2015
117,602,777
Carrying amounts
6
-
673,287
128,737,199
452,046,889
3,716,701
427,670
203,977,113
526,721,478
3,617,383
351,448
211,751,658
527,820,258
Dangote Cement Plc
Notes to the condensed consolidated and separate financial statements
For the period ended 31st March 2015
13
Intangible assets
13.1 Group
computer
software
14'000
exploration
assets
N'000
Total
f41000
Cost
Balance at 1st January 2014
Additions
Other reclassifications
Effect of foreign currency exchange differences
1,298,396
966,928
30,184
6,684
1,495,090
629,393
44,743
2,793,486
1,596,321
30,184
51,427
Balance at 31st December 2014
Additions
Effect of foreign currency exchange difference
2,302,192
1,012
(655)
2,169,226
283,793
119,322
4,471,418
284,805
118,667
Balance at 31st March 2015
2,302,549
2,572,341
4,874,890
Balance at 1st January 2014
Amortisation expense
Effect of foreign currency exchange differences
487,316
266,059
3,911
15,152
445
487,316
281,211
4,356
Balance at 31st December 2014
Amortisation expense
Effect of foreign currency exchange difference
757,286
98,689
5,506
15,597
4,107
602
772,883
102,796
6,108
Balance at 31st March 2015
861,481
20,306
881,787
Accumulated amortisation
Carrying amounts
At 1st January 2014
811,080
1,495,090
2,306,170
At 31st December 2014
1,544,906
2,153,629
3,698,535
At 31st March 2015
1,441,068
2,552,035
3,993,103
Intangigle asset(computer software) represents software which has a useful life of 3 years and is
amortized on a straight line basis over these years.
7
Dangote Cement Plc
Notes to the condensed consolidated and separate financial statements
For the period ended 31st March 2015
13 Intangible assets
13.2 Company
Computer
software
N'000
Other
intangibles
tit'000
Total
03'000
Cost
1,033,943
1,033,943
243,893
243,893
Balance at 31st December 2014
Additions
1,277,836
1,277,836
Balance at 31st March 2015
1,277,836
1,277,836
Balance at 1st January 2014
Amortisation expense
361,753
233,756
361,753
233,756
Balance at 31st December 2014
Amortisation expense
595,509
73,156
595,509
73,156
Balance at 31st March 2015
668,665
668,665
Balance at 1st January 2014
Additions
Other reclassification
Accumulated amortisation
Carrying amounts
At 1st January 2014
672,190
672,190
At 31st December 2014
682,327
682,327
At 31st March 2015
609,171
609,171
Dangote Cement Plc
Notes to the condensed consolidated and separate financial statements
For the period ended 31st March 2015
14 Investments
Details of the Group's subsidiaries at the end of the reporting period are as follows:
Name of subsidiary
Sephaku Cement (Pty) Limited
Dangote Industries (Ethiopia) Plc
Dangote Industries (Zambia) Limited
Dangote Cement Senegal S.A
Dangote Cement Cameroun SA
Dangote Industries Limited, Tanzania
Dangote Cement Congo S.A
Dangote Cement (Sierra Leone) Limited
Dangote Cement, Cote D'Iviore SA
Dangote Industries Gabon S.A
Dangote Cement Ghana Limited
Dangote Cement - Liberia Ltd.
Dangote Cement Marketing Senegal SA
Dangote Cement Burkina faso SA
Dangote Cement Chad SA
Dangote Cement Mali SA
Dangote Cement Niger SARL
Dangote Industries Benin S.A.
Dangote Cement Togo S.A.
Dangote Cement Kenya Limited
Dangote Quarries Kenya Limited
Dangote Cement Madagascar Limited
Dangote Quarries Mozambique Limitada
Investments
15
Place of
incorporation
and operation
South Africa
Ethiopia
Zambia
Senegal
Cameroun
Tanzania
Congo
Sierra Leone
Cote D'Ivoire
Gabon
Ghana
Liberia
Senegal
Burkina Faso
Chad
Mali
Niger
Benin
Togo
Kenya
Kenya
Madagascar
Mozambique
Proportion of ownership or
voting power held by the
Group
31/03/15
31/12/14
64.00%
94.00%
75.00%
90.00%
80.00%
70.00%
100.00%
99.60%
80.00%
80.00%
100.00%
100.00%
100.00%
95.00%
95.00%
95.00%
95.00%
98.00%
90.00%
90.00%
90.00%
95.00%
95.00%
64.00%
94.00%
75.00%
90.00%
80.00%
70.00%
100.00%
99.60%
80.00%
80.00%
100.00%
100.00%
100.00%
95.00%
95.00%
95.00%
95.00%
98.00%
90.00%
90.00%
90.00%
95.00%
95.00%
Group
31/03/15
31/12/14
N'000
14'000
Company
31/03/15
31/12/14
N'000
N'000
Sephaku Cement (Pty) Limited
Dangote Industries (Ethiopia) Plc
Dangote Industries (Zambia) Limited
Dangote Cement Senegal S.A
Dangote Cement Cameroun S.A
Dangote Industries Limited, Tanzania
Dangote Cement Congo S.A
Dangote Cement (Sierra Leone) Limited
Dangote Cement Cote D'Ivoire S.A
Dangote Industries Gabon S.A
Dangote Cement Marketing Senegal SA
Dangote Cement Burkina faso SA
Dangote Cement Chad SA
Dangote Cement Mali SA
Dangote Cement Niger SARL
Dangote Cement - Madagascar
Dangote Cement Benin
Dangote Cement Togo
Societe des Ciments d' Onigbolo
24,283,254
1,618,936
115
29,448
8,807
69,636
3,481
18,048
16,044
5,748
4,232
3,238
3,238
3,238
5,226
389
3,354
838
1,582,369
24,283,254
1,618,936
115
29,448
8,807
69,636
3,481
18,048
16,044
5,748
4,232
3,238
3,238
3,238
5,226
389
3,354
838
1,582,369
27,659,639
27,659,639
Impairment
(1,582,369)
(1,582,369)
Total
26,077,270
26,077,270
Non-current prepayments
Group
31/03/15
*4'000
Company
31/12/14
N'000
31/03/15
N,000
31/12/14
N'000
Advance to contractors
71,326,624
79,490,715
1,772,564
1,772,564
Total non-current prepayments
71,326,624
79,490,715
1,772,564
1,772,564
Advances to contractors represent various advances made to contractors for the construction of plants.
Dangote Cement Plc
Notes to the condensed consolidated and separate financial statements
For the period ended 31st March 2015
16 Other receivables
Non Current
Entities controlled by the company
Company
Amount owed to related
Amount owed by related
parties
parties
31/03/15
31/03/15
31/12/14
31/12/14
N'000
N'000
'4'000
N'000
327,942,324
277,149,739
The above balances represents expenditures on projects in African countries. As these are not likely to be
repaid within the next twelve months, they have been reclassified under non-current assets.
17 Inventories
Group
Finished goods
Work-in-progress
Raw materials
Packaging materials
Consumables
Fuel
Spare parts
Goods-in-transit
Company
31/12/14
*1'000
31/03/15
14000
31/12/14
14'000
31/03/15
13'000
3,837,682
4,471,654
3,892,492
1,308,020
4,345,626
14,954,909
15,432,057
3,061,752
4,303,990
4,754,100
3,930,796
1,323,521
4,233,467
9,248,920
13,473,400
1,419,646
1,949,354
3,087,038
2,102,593
813,134
4,288,035
14,742,781
14,593,184
679,931
51,304,192
42,687,840
42,256,050
2,973,154
2,603,110
3,014,644
995,089
4,160,525
9,170,970
12,875,023
522,064
36,314,579
18 Trade and other recievables
Group
Trade receivables
Impairment allowance on trade receiveables
Deposits for supplies
Staff loans and advances
Other receiveables
Company
31/12/14
1''000
31/03/15
N'000
31/03/15
N'000
31/12/14
N'000
7,740,765
(1,306,110)
6,434,655
5,911,154
729,223
7,944,516
5,526,204
(1,303,443)
4,222,761
5,836,896
656,153
4,924,467
3,055,652
(1,297,685)
1,757,967
5,706,196
683,160
2,525,546
2,398,315
(1,297,685)
1,100,630
5,530,589
619,620
1,211,889
21,019,548
15,640,277
10,672,869
8,462,728
31/03/15
N'000
Group
31/12/14
03'000
Company
31/03/i 5
13'000
31/12/14
13'000
19 Prepayments and other current assets
Advance to contractors
Deposit for import
Rent and insurance
23,746,937
27,957,394
1,866,595
26,623,838
17,880,447
2,203,153
22,759,697
27,131,506
1,631,841
Total current prepayments
53,570,926
46,707,438
51,523,044
25,542,639
17,880,447
1,858,130
45,281,216
Related party transactions - current
Parent company
Entities controlled by the parent company
Affiliates and associates of parent company
6,370,268
455,680
10,937,734
537,602
6,370,268
455,680
10,937,734
537,602
Total current receivables from related parties
6,825,948
11,475,336
6,825,948
11,475,336
Prepayments and other current assets
60,396,874
58,182,774
58,348,992
56,756,552
Current advance to contractors represents various advances made for the purchase of LPFO, AGO, Coal and
other materials which were not received at the end of the period.
10
Dangote Cement Plc
Notes to the condensed consolidated and separate financial statements
For the period ended 31st March 2015
20 Cash and cash equivalents
Company
31/12/14
Group
31/12/14
31/03/15
03'000
17,251,316
31,745,090
Cash and bank balances
Short term deposits
N'000
31/03/15
tst'000
10,458,447
10,134,693
11,103,480
31,745,090
6,214,818
10,134,693
42,848,570
16,349,511
48,996,406
20,593,140
Bank overdrafts used for cash management
purposes
(4,295,955)
(4,189,674)
Cash and cash equivalents
44,700,451
16,403,466
N'000
16,349,511
42,848,570
21 Trade and other payables
Group
31/12/14
N'000
31/03/15
14'000
Trade payables
Payable to contractors
Value added tax
Withholding tax payable
Staff pension
Interest payable
Advances from customers
Other accruals and payables
47,119,287
19,883,184
3,763,193
3,537,948
111,691
6,459,648
23,325,113
17,560,687
34,535,123
19,015,061
5,740,652
3,694,683
133,606
6,622,738
9,352,041
21,836,094
121,760,751
100,929,998
33,084,985
9,062,666
5,740,652
1,231,477
94,088
6,622,738
9,056,976
15,513,897
45,610,639
8,336,248
3,511,658
1,042,486
83,025
6,456,604
22,807,007
10,067,702
80,407,479
97,915,369
Company
Group
22 Financial Debts
Company
31/12/14
N'000
31/03/15
N'000
31/12/14
N'000
29,989,008
125,000,000
650,336
29,988,945
125,000,000
514,214
155,639,344
155,503,159
155,639,344
155,503,159
16,223,084
57,802,220
16,743,303
70,335,144
16,223,084
14,392,760
16,743,303
29,630,633
74,025,304
87,078,447
30,615,844
46,373,936
Total borrowings
229,664,648
242,581,606
186,255,188
201,877,095
Non-current portion of financial debts
133,679,849
131,941,708
94,571,340
91,688,844
106,450,224
4,295,955
4,189,674
95,984,799
110,639,898
Unsecured borrowings at amortised cost
Subordinated loans
Loans from Parent company
Bulk Commodities loans
Secured borrowings at amortised cost
Power intervention loan
Bank loans
Current portion repayable in one year and shown
under current liabilities
Overdraft balances
Current financial debts
11
31/03/15
N'000
31/12/14
N'000
31/03/15
N'000
29,989,008
125,000,000
650,336
29,988,945
125,000,000
514,214
95,435,088
91,683,848
106,442,007
91,683,848
106,442,007
Dangote Cement Plc
Notes to the condensed consolidated and separate financial statements
For the period ended 31st March 2015
22 Financial Debts (Contd.)
(a) A subordinated loan of N55.4 billion was obtained by the Company from Dangote Industries Limited in 2010.
N30 billion was long-term and the remaining balance was short term and is repayable on demand. The long-term
loan is unsecured, with interest at 10% per annum and is repayable in 3 years after a moratorium period ending
31st March 2017. The interest on the long term portion was waived for 2011. Because of the favourable terms at
which the Company secured the loan, an amount of N2.8 billion, which is the difference between the fair value of
the loan on initial recognition and the amount received, has been accounted for as capital contribution.
(b) In 2011 and 2012, the Bank of Industry through Guaranty Trust Bank Plc and Access Bank Plc granted the
Company the sum of N24.5 billion long-term loan repayable over 10 years at an all-in annual interest rate of 7% for
part financing or refinancing the construction cost of the power plants at the Company's factories under the Power
and Aviation Intervention Fund. The loan has a moratorium of 12 months. Given the concessional terms at which
the Company secured the loan, it is considered to have an element of government grant. Using prevailing market
interest rates for an equivalent loan of 12.5%, the fair value of the loan is estimated at N20.7 billion. The difference
of N3.8 billion between the gross proceeds and the fair value of the loan is the benefit derived from the low interest
loan and is recognised as deferred revenue. The facility is secured by a debenture on all fixed and floating assets
of the Company to be shared pari passu with existing lenders.
23 Deferred revenue
Group
31/03/15
31/12/14
14'000
N'000
Company
31/12/14
31/03/15
W000
N'000
Deferred revenue arising from government grant
(refer to (a) below)
1,744,400
1,868,501
1,744,400
1,868,501
Non-current portion of deferred revenue
1,279,988
1,389,885
1,279,988
1,389,885
464,412
478,616
464,412
478,616
24 Other current liabilities
Current portion of deferred revenue
Related party transactions
Parent company
Entities controlled by the parent company
Affiliates and associates of parent company
Other current liabilities
9,836,354
1,173,203
8,054,154
5,695,682
5,925,230
6,797,958
9,836,354
644,768
7,177,509
5,695,682
5,358,926
4,965,748
19,063,711
18,418,870
17,658,631
16,020,356
19,528,123
18,897,486
18,123,043
16,498,972
(a) The deferred revenue mainly arises as a result of the benefit received from government loans received in 2011
and 2012. The revenue was recorded in other income line.
12
Dangote Cement Plc
Notes to the condensed consolidated and separate financial statements
For the period ended 31st March 2015
25 Long term provisions
Group
31/03/15
N'000
Balance at beginning of the period
Effect of foreign exchange differences
Provisions made during the period
Write back of provision no longer required
Unwind of discount
31/12/14
Ist'000
4,011,388
376,665
(91,589)
32,675
(1,739,702)
9,572
(20,560)
259,382
28,063
2,222,344
643,550
Witholding tax payables
Company
31/12/14
N'000
31/03/15
N'000
294,515
233,856
31,201
9,572
32,596
28,063
335,288
294,515
-
3,367,838
Balance at the end of the period
2,222,344
4,011,388
294,515
335,288
The above provision represents the Group's obligations to settle environmental restoration and dismantling /
decommissioning cost of property, plant and equipment. The expenditure is expected to be utilised at the end of
the useful lives for the mines which is estimated to be between the year 2025 to 2035 and non current
witholding tax on loan from parent company intended to be remitted to tax authorities as and when due.
26 Share capital
Group
31/03/15
31/12/14
N'000
N'000
Issued and fully paid
Share capital (17,040,507,405 (2014:
17,040,507,405) ordinary shares of NO.5 each)
Share premium
8,520,254
8,520,254
42,430,000
42,430,000
50,950,254
13
50,950,254