DangoteCementPlc 2018 AnnualReport

Dangote Cement Plc
Annual Report 2018

Dangote Cement Plc is Sub-Saharan Africa’s
leading cement company, with operations
in ten countries.
In this Annual Report for 2018, we present
a comprehensive account of our financial
and operational performance during the
last financial year.
For the first time, we have structured our Find out more at dangotecement.com
Annual Report around the 7 Sustainability

Pillars of what we call “The Dangote Way”.
We hope it will provide a deeper insight
into how we are building a sustainable
business for the benefit of all
our stakeholders.
Strategic report Corporate governance 131 Consolidated and separate statement

of financial position
01 Highlights 80 Chairman’s introduction to governance
132 Consolidated statement of changes
02 At a glance 86 The Board of Directors
in equity
06 Where we operate 87 Board activities
133 Separate statement of changes
08 Chairman’s statement 88 Board of Directors in equity
10 Culture 91 Directors’ report 134 Consolidated and separate statement
18 Economic 96 Nomination Committee report of cash flows
20 Markets 98 Audit, Compliance and Risk 135 Notes to the consolidated and separate
22 Business model Management Committee report financial statements
24 Strategy 106 Finance and General Purpose 197 Five-year financial summary
Committee report – other national disclosure
26 Operational
110 Technical and Operations 199 Statement of value added
28 Operating review Committee report – other national disclosure
30 Health and safety 114 Remuneration and Governance Supplementary information
32 Executive team Committee report 200 Share capital history
34 Interview with the Chief Executive 200 Related-party transactions
37 Regional overview Financial statements 202 Board policies
38 Operating review 123 Report of the Statutory 204 Compliance with SEC
48 Social Audit Committee disclosure requirements
50 Community 124 Certification pursuant to Section 60 of 207 Notice of 10th Annual General Meeting
the Investments and Securities Act (ISA)
54 People 208 Directors and professional advisers
2007
56 Dangote Academy 209 Corporate information
125 Statement of Directors’ Responsibilities
58 Environmental for the Preparation and Approval 210 Donations and sponsorships
64 Financial of the Financial Statements 212 Board and Committee meeting dates
66 Financial review 126 Independent Joint Auditors’ Report and attendance
70 Institutional 129 Consolidated and separate statement of 215 Glossary of abbreviations
73 Risk management profit or loss 217 Mandate for E-Dividend Payment
76 Principal risks 130 Consolidated and separate statement of 219 Proxy Form
comprehensive income
4 Dangote Cement Plc Annual Report 2018

Strategic report 01 02 03 04
Highlights
2018: A year of
record performance
Financial highlights Read more on pages 64–69
Revenue up 11.9% Dividend up 52.4%
₦901.2B ₦16.00 per share

2018 ₦901.2B 2018 ₦16.00
2017 ₦805.6B 2017 ₦10.50
2016 ₦615.1B 2016 ₦8.50
EBITDA up 12.1% Net debt/EBITDA
₦435.3B 0.39x
2018 ₦435.3B 2018 0.39x
2017 ₦388.1B 2017 0.52x
2016 ₦257.2B 2016 0.94x
Operational highlights Read more on pages 26–47
Group sales volumes Gas turbines now operating

up 7.4% to 23.5Mt in Tanzania
Nigeria sales volumes up Innovative new products

11.4% to 14.2Mt gaining market share in
Nigeria
Pan-African sales volumes Enhanced Group-wide

level at 9.4Mt sustainability drive
implemented
Annual Report 2018 Dangote Cement Plc 01

Strategic report
At a glance
Our purpose
To be the partner of choice for those who
are building Africa, creating sustainable
value for all our stakeholders.
“I’m proud to work

for a company with
a clear vision for
a successful and
sustainable future.”
Echigeme Grant
Shift Manager
Ibese
Read more on pages 48–57
Vision Mission Values

Our vision is to be a global leader Our mission is to deliver strong Service
in cement production, respected returns to shareholders by selling
Leadership
for the quality of our products high-quality products at affordable
and services and for the way prices, backed by excellent Entrepreneurship
we conduct our business. customer service.
Excellence

01 02 03 04
Building prosperity
26,281 staff
13 sites
10 countries
Investment highlights
Leading cement producer in Industry-leading margins

diverse regional markets with drive excellent returns and
excellent growth prospects strong balance sheet, with
low net debt
45.6Mta capacity with Robust governance, with

modern, efficient factories five Independent Directors
Significant competitive Fully committed to

advantages, operating sustainable growth that
in local markets benefits all stakeholders
One of the largest A unique investment

companies in Sub-Saharan opportunity offering
Africa by revenue and exposure to Sub-Saharan
market capitalisation Africa’s growth potential

Strategic report
At a glance continued
The Dangote Group

7 Sustainability Pillars
The Dangote Way
Our 7 Sustainability Pillars support our unique approach to creating
a world-class enterprise.
Driven by the goal of achieving the highest levels of governance, the

7 Sustainability Pillars are embedded in our corporate culture and
guide our approach to building a prosperous and sustainable business.
Cultural Economic Operational

Embody our core values Promote inclusive Deploy cost-effective,
into the way we do economic benefits, state-of-the-art
business, embracing self-reliance and production and
respect, teamwork, self-sufficiency through distribution facilities and
empowerment, inclusion, the sustainable work with our partners to
integrity, learning and industrialisation of produce high-quality
meritocracy within Africa’s key markets products that satisfy the
our organisation. for the benefit of all needs of local markets.
our stakeholders.
Read more on pages Read more on pages

10–17 Read more on pages 26–47
18–25

01 02 03 04
“The Dangote Way reflects

our commitment to building
a sustainable business for
all stakeholders.”
Aliko Dangote, GCON
Group President/CEO,
Dangote Industries Ltd.
Social Environmental Financial Institutional

Nurture the growth and Take care of our Achieve sustainable Build a world-class
wellbeing of our environment by creating financial growth by company based upon
employees and host sustainable practices to selling high-quality strong governance,
communities, ensure address the challenges products at affordable sustainable growth,
they share in our success of climate change, prices, so we can transparency, dialogue
and enjoy high standards optimising our energy deliver strong returns and compliance with
of health, safety and efficiency, water usage to shareholders and laws and regulations.
environmental care. and emissions control. create value in our
host economies.
Read more on pages
Read more on pages Read more on pages 70–79
48–57 58–63
Read more on pages
64–69

Strategic report
Where we operate
Truly Pan-African
Dangote Cement has production capacity of 45.6 million tonnes
per year across ten countries in Sub-Saharan Africa. We have
integrated factories in seven countries, a clinker grinding plant in
Cameroon and import and distribution facilities for bulk cement
in Ghana and Sierra Leone. Together, these operations make us
the largest cement producer in Sub-Saharan Africa.
Serving our continent

Based in Nigeria, we operate in many
08
of Sub-Saharan Africa’s key markets for 10 01

04
cement, helping the continent become 07

05
self-sufficient in this most basic commodity.
06
Our regional strategy

We look for markets that have ample limestone, 02
thriving economies, growing populations and a 09
pressing need for housing and infrastructure.
03
A track record of growth
25
20
Million tonnes
15
10
0
2010 2011 2012 2013 2014 2015 2016 2017 2018
Nigeria Cameroon Congo Ethiopia Ghana Senegal Sierra Leone South Africa Tanzania Zambia
06 Dangote Cement PLC Annual Report 2018

01 02 03 04
Type of operations Clinker

Integrated Import
grinding
01 Nigeria 02 Tanzania 03 South Africa

Revenue Revenue Revenue
₦618.3B ₦19.5B ₦59.0B
2018 ₦618.3B 2018 ₦19.5B 2018 ₦59.0B
2017 ₦552.4B 2017 ₦16.7B 2017 ₦57.3B
2016 ₦426.1B 2016 ₦12.0B 2016 ₦41.4B
Capacity Capacity Capacity

29.3Mta 3.0Mta 2.8Mta
04 Ethiopia 05 Cameroon 06 Congo

₦51.4B ₦48.7B ₦7.5B
2018 ₦51.4B 2018 ₦48.7B 2018 ₦7.5B
2017 ₦54.5B 2017 ₦43.2B 2017 ₦1.0B
2016 ₦40.1B 2016 ₦31.2B

07 Ghana 08 Senegal 09 Zambia

₦25.4B ₦35.0B ₦33.1B
2018 ₦25.4B 2018 ₦35.0B 2018 ₦33.1B
2017 ₦28.1B 2017 ₦28.8B 2017 ₦25.1B
2016 ₦32.9B 2016 ₦19.9B 2016 ₦17.0B

10 Sierra Leone Future projects

In the coming years we will open
Revenue export facilities in Nigeria so we can
₦3.7B export clinker and cement to our
2018 ₦3.7B existing facilities both in Cameroon
2017 ₦3.0B and the new import facilities we plan
to build in West Africa. In addition,
we plan to build new integrated
Capacity factories in Nigeria and Niger that
0.5Mta will strengthen our position as
Africa’s leading cement producer.
Annual Report 2018 Dangote Cement PLC 07

Strategic report
Chairman’s statement
Dear fellow stakeholders

Before I reflect on what was our most
successful year to date, I wish to pay
tribute to three of our colleagues whose
deaths particularly shocked our
Company in May.
Our Chief Executive for Ethiopia, Deep
Kamra, his Assistant, Beakal Alelign, and
Driver, Tsegaye Gidey were brutally killed
in an unprovoked act of violence on the
road from our plant in Mugher to the
capital, Addis Ababa.
May the peace and blessings of God be
upon them and all other colleagues who
sadly passed away in 2018. My thoughts
and prayers are with all their families.
Aliko Dangote GCON This heartbreaking incident followed
Chairman months of engagement with our local
community about our relationship with
them and working to assure them we
would collaborate more closely with
them as one of our many groups
Building a
of stakeholders.
Recognising that a business has many
responsibilities, we have focused this
2018 Annual Report on our commitment
prosperous
to building a sustainable future for all
our stakeholders, including the local
communities that host our operations
across Africa.
and sustainable The year in review

Turning to our business performance,
2018 was our most successful year ever,
future with 7.4% growth in Group cement sales

to 23.5 million tonnes (Mt) and 11.9%
growth in revenues to ₦901.2B, with
EBITDA up 12.1% to ₦435.3B, at a
margin of 48.3%.
Following the confirmation of our Pioneer
Tax entitlement for 2015–18, net profit
stood at ₦390.3B with earnings of
₦22.83 per share.
As a result of this strong performance
the Board has recommended for your
approval a dividend of ₦16.00 per
ordinary 50 kobo share.

01 02 03 04
This dividend payment represents a We are committed to bringing our Outlook

52.4% increase on the ₦10.50 per sustainability efforts very quickly up to The outlook for Dangote Cement
share we paid with respect to the 2017 the levels that our international cement is exciting. Our Board continues to
financial year. If approved at the Annual industry peers achieved after many consider all strategic and financial
General Meeting on 17th June, it will be years of work. options for the Company.
payable to shareholders whose names
As an organisation, we are focused upon
are on the Company’s register at the Board changes improvement in all areas and I wish to pay
close of business on 3rd June 2018. Olusegun Olusanya has resigned from
tribute to all our staff for their constant
the Board after having been with our
efforts towards achieving the vision of
Operating performance organisation since its early days in
our Board and Executive team.
Sales of cement from our Nigerian 2004, when he was on the Board of our
plants increased by 11.4% to 14.2Mt predecessor company, Benue Cement We will continue to improve our efforts
in 2018. Company, before its merger with in sustainability by applying The Dangote
Dangote Cement Plc. Way to the 7 Sustainability Pillars of our
Our Pan-African operations contributed
business culture and operations.
9.4Mt, level on 2017, with strong His hard work played an important role
performances in Cameroon, Senegal and in deliberations and developing strategy You will recall that only a few years ago,
Zambia helping to offset weaknesses in regarding growth of our Company. We Nigeria was one of the world’s largest
Ethiopia and Tanzania. With improving thank him for his long dedicated service importers of cement. Thanks to the
local conditions in Ethiopia and gas with the Company. efforts that you have supported as
turbines now operating in Tanzania, shareholders, we are continuing its
We also bid farewell to our Group
we expect these two large plants to transformation into an exporter of
Chief Financial Officer and Board
improve their performance in 2019, this basic but vital commodity.
member, Brian Egan, who has resigned
further increasing profitability.
effective 28th February 2019 and is Later in 2019 we will open export
returning to Ireland after five years facilities in Lagos and Port Harcourt that
Sustainability initiatives with Dangote Cement Plc. will enable us to export clinker, initially
The year included Dangote Cement’s to our grinding facility in Cameroon and
first ever Sustainability Week, full of He plans to spend some time with
then to new grinding plants we are
educational and community events his family who remained back home in
building in West Africa.
designed to raise our collective Ireland during that period. His impact
awareness about how we can build on our business and its finance function Not only will these generate useful foreign
a more sustainable business. has been significant and we wish him currency for Dangote Cement to support
well for the future. other expansion projects outside of
I am delighted to report that it was a Nigeria, they will also help to increase
huge success, taken up with great In the interim, Guillaume Moyen, who
the output of our Nigerian plants.
enthusiasm by staff across our ten recently joined Dangote Cement as
countries, who took part in initiatives Group Chief Finance Officer (Operations) These will help to improve job creation
such as educational workshops, litter will be Acting Group Chief Financial and increase prosperity in Nigeria,
clearing and donations to local Officer from 1st March 2019. something of which all stakeholders
community hospitals. can be proud.
In November, we adopted the
Other matters As our stakeholders, I hope you will enjoy
During 2018, we announced a commercial reading our Annual Report for 2018 and
Sustainability Charter of the Global
paper programme of up to ₦150B and thank you for your continuing support.
Cement and Concrete Association, of
soon after raised ₦100B in the first two
which we are a member. It commits us
tranches issued.
to standardised and externally verified
sustainability reporting in five areas: The success of these issuances, which
health and safety, climate change and were the largest ever by a Nigerian
energy, social responsibility, environment company, can be attributed to our
and nature and the circular economy. excellent performance and strong Aliko Dangote
balance sheet, which is reflected in Chairman
These align with the efforts we are
our international and local credit ratings. 25th February 2019
pursuing in our 7 Sustainability Pillars
approach.

Strategic report
Culture
Building a culture
of sustainability

01 02 03 04
Q&A with Dr Ndidi Nnoli Edozien

Group Chief, Sustainability and Governance
Q seven areas, which embrace all

How do you build a culture of aspects of our doing business in
sustainability in Dangote Cement? a way that would make us proud
and allow us to demonstrate an
A
innovative and unique approach
The Sustainability and Governance
to thinking about and achieving
Function is mandated to embed
sustainable business development.
sustainability at all levels of the
Company, from the Board Chairman
to the most junior employee. We Q
have based our efforts around the What did you achieve with this
7 Sustainability Pillars described in approach in 2018? communities in which we operate.
this report, which is an initiative I’m very proud to say we’ve engaged
across all the companies in our A and educated 500 Sustainability
Group. Dangote Cement has Commencing in 2017, we established
Champions across Africa who are
pioneered our efforts in adopting our baseline in sustainability reporting
responsible for motivating our efforts
this holistic approach to sustainable by benchmarking our performance
across the Company, from the Executive
growth that considers financial, across the 7 Sustainability Pillars
Management to the doormen who
operational and institutional against various global standards
greet you at HQ. These Sustainability
sustainability, as well as the more including the United Nations Global
Champions were responsible for our
traditional notions of sustainability Compact’s Sustainable Development
successful Sustainability Week, during
including environment, social and Goals, the World Business Council
which over 500 employees mobilised
economic impact with special for Sustainable Development’s
resources to impact 13 communities
emphasis on building a culture of Cement Sustainability Initiative
across six countries. This also won
sustainability around our community and the Global Reporting Initiative.
us the 2018 AFRICA SERAS Awards,
outreach, health and safety. We built on this in 2018 by measuring
which is the most reputed CSR and
and reporting our performance
Sustainability award on the continent.
against global industry leaders and
Q conducting a materiality assessment
How did the 7 Sustainability through extensive stakeholder Q
Pillars come about? engagement to achieve GRI What are the benefits for
certification and compliance with
A Dangote Cement?
every relevant national and
They were the result of us asking
international standard for A
what sort of company we wanted to The 7 Sustainability Pillars guide us to
sustainability reporting in 2018.
be and how best to achieve it. We achieve our vision to be respected for
conducted internal workshops and A more “on the ground” achievement the way we conduct our business and
consulted with external stakeholders was our first Sustainability Week, in I believe they enable us to feel more
and advisers and once we had September 2018, that encompassed united in our vision to drive positive
considered all of this feedback lots of educational workshops, change and build sustainable local
we embedded our thinking as awareness programmes and economies in the countries where
measurable KPIs across these empowerment initiatives in the we operate.

Strategic report
Culture
The central pillar of collaboration with the Sustainable 1. P

ercentage of staff hired from
our sustainability efforts Business Initiative of the University of the local community to work
Culture is at the heart of our Edinburgh, facilitated training and mentoring at major locations
7 Sustainability Pillars approach. programs reaching a network of 500 At significant locations of operation
We actively aspire to embody our Sustainability Champions across Africa. we preferentially draw upon the local
core values in the way we do business, community for employment at
In 2018, our inaugural Sustainability Week
including our respect for cultural diversity the plants.
aligned with the United Nations “Day of
and giving back to the societies in which Action” to support the implementation of In 2018, some Nigerian locations
we operate. To achieve this, we actively the Sustainable Development Goals by recorded more than 90% local hires. In
encourage teamwork, empowerment, uniting more than 500 of our employees South Africa’s Aganang plant, more than
inclusion, respect, integrity and meritocracy across six countries and 13 communities 99% of employees are South African, of
within our organisation. We call this over a common purpose and shared values whom 86% are from the local community.
approach "The Dangote Way". to positively impact our host communities. In our Senegalese operations, local
Given the diversity of our workforce employees make up about 95% of the
and host communities, our efforts have Key performance indicators total and this figure is still increasing,
been to build on this to better integrate We have adopted new KPIs that we compared to around 60% in 2015.
global and local best practices into believe enhance our commitment to 2. S taff volunteering
the 7 Sustainability Pillars adopted in employee-driven sustainability thinking We are building a culture that
2017 as our methodology to embed and doing, The Dangote Way. encourages and supports active
sustainable business practices in our staff involvement in our sustainability
These KPIs are as set out by the Global
day to day operations. initiatives and programmes. This is
Reporting Initiative and we are committed
To actively ensure we live “The Dangote to monitoring and publishing our reflected in the unprecedented level
Way”, the Group Sustainability and performance on them as we progress: of staff participation in the 2018
Governance function, partly in Sustainability Week.
Sustainability Week Sustainability Champion training

Our first Sustainability Week, held in September 2018, During the year we trained more than 500 Sustainability
provided a Group-wide opportunity to engage with internal Champions across the Group in programmes held in
stakeholders on the importance of sustainability, as laid out April, July and August, in partnership with the University
in the 7 Sustainability Pillars of The Dangote Way. of Edinburgh.
Thirteen business locations participated in the exercise. This has created a pool of sustainability enthusiasts
Highlights of activities during the week-long event included who are committed to championing the new sustainable
a staff volunteering scheme, educational workshops, tree business culture we are introducing.
planting, cleaning up of hospitals, litter clearing, visits to
The training programmes enlightened participants on the
schools and many other local community projects.
7 Sustainability Pillars and the roles that individual staff
At our Obajana factory in Kogi State, for example, our can play towards achieving the goals of sustainable
Sustainability Champions rehabilitated and donated clinical business growth.
equipment to Obajana Community Clinic.
At Ibese, in Ogun State, the Sustainability team at Ibese
engaged in the donation of cash and equipment to local
women entrepreneurs in the agrarian host community of
Ajibawo, 3km away from the Ibese Cement Plant.
Sustainability Week will become an annual event, designed
to promote awareness of the 7 Sustainability Pillars of
The Dangote Way. It is built on our committed belief that
sustainability must be owned and practised at every level
of the organisation.

01 02 03 04
More than 500 employees volunteered Ensuring employees have a strong Our Sustainability Report, published
their time, skills, energy and other sense of involvement, mutual respect alongside the Annual Report for the first
resources towards various projects in and belonging within our organisation time in 2018, also establishes our baseline
host communities across six countries, allows us to benefit from the wealth of performance in order to responsibly track
including environmental clean-ups, their collective knowledge and experience. our performance and transparently
teachings in public schools, donation This gives insightful perspectives when improve this year on year.
of medical equipment to community taking business decisions and a diverse
We recognise that building a culture of
healthcare centres, and other projects. array of skills to execute these decisions
sustainability is central to living these brand
so that Dangote Cement continues to
3. Number of Sustainability values and that a successful corporate
grow globally and sustainably.
Champions trained in 2018 culture requires us to continuously
During the year we trained 500 Sometimes, our high cultural diversity attract staff whose capabilities are
people as Sustainability Champions leads to contrasting views. Conflicts may aligned with our aspirations in integrity,
to consolidate sustainability thinking arise with external stakeholders, either transparency, anti-corruption and
and awareness across the Company. during the ordinary course of operations sustainability, including health, safety,
or during stakeholder engagement. social and environmental best practices.
Across all our training efforts, we devoted
We are developing grievance redressal
1,083 staff hours to in-house training
systems that allow us to better address 2018 stakeholder
in sustainability awareness and
conflicts and protect the rights of inclusion strategy
implementation. This represented
involved parties. We understand the critical role played
0.3% of our total staff hours devoted
to training. by our stakeholders as well as the value
Protection of brand values they bring to our business.
Dangote Cement aims to be Africa’s
Promoting diversity We realise that by paying close attention
brand of choice, through our Company
To create a working environment in which to their concerns and interests we are
values of leadership, based upon the
diversity is valued, we promote a culture building a relationship that is mutually
excellence of our products and services
of inclusiveness, providing everyone rewarding.
that reflects our entrepreneurial drive.
with opportunities to develop skills and
This is why we ensure our stakeholders
talents consistent with our values and We are committed to reflecting core values
are constantly consulted and their feedback
essential to support our business and in the way we do business, producing
is built into our decisions.
sustainability objectives. high-quality products that sell at
reasonable prices. We are supported by By adopting a pragmatic stakeholder
We are committed to building the business
excellent supply chain management and management approach that guides the
case for an organisational culture in
we enable positive impacts for our staff, way we identify and engage with our
which Dangote Cement's employees,
customers, suppliers, host communities stakeholders, we are able to listen and
contractors and stakeholders share
and local economies. identify their key concerns and develop
common values towards a more
strategies for addressing them while
responsible approach to doing business
maximising our positive impacts.
across the 7 Sustainability Pillars.
L-R Musa Rabiu (Group Chief Human Resources Officer

DCP), Dr Ndidi Nnoli Edozien (Group Chief Sustainability
Officer DIL), Fatima Wali-Abdulrrahman (Senior Adviser
to the President, Dangote Industries Limited) & Eunice
Sampson (GM Sustainability DCP) with the Supply Chain
Management award won by Dangote Cement at the
2018 Sustainability, Enterprise and Responsibility
Awards in Lagos, December 2018.

Strategic report
Culture continued
Internal stakeholder engagement Materiality assessment, peer This belief culminated in a media survey
In 2018, our approach primarily centred review and benchmarking exercise in which our team identified key topics
on collecting internal stakeholders’ In 2018, the Nigerian Stock Exchange frequently being reported, in order to
feedback on aspects of our business released its Sustainability Guidelines. identify the direction of public interest
processes, operations and activities that We achieved NSE compliance and a and subsequently factor this insight into
were material to them and deciding how GRI-Certified Sustainability Report the topics we chose as material this year.
we can best plug observed gaps. (separate to this Annual Report),
with limited assurance by PWC, was Materiality matrix
This strategy is critical because our
published in 2018. This is well ahead From the work described above, a list
internal stakeholders directly enable
of our originally projected 2020 timeline. of prioritised indicators was then created
our operations and processes and also
on a materiality matrix and shared with
interact with our host communities for Through a transparent process of both the data owners identified at
critical feedback about our impacts on assessing materiality, we worked with Dangote Cement as well as members
local people, their economy and their Deloitte, PricewaterhouseCoopers of the Board for validation.
physical environment. and CSR-in-Action, building on the
benchmarking exercise and employee These individuals were asked to rate
In 2018, we extensively engaged our
survey, to identify those topics that each indicator’s level of importance from
internal stakeholders, with the aspiration
reflect our organisation’s significant their perspective where they disagreed
to engage external stakeholders across all
economic, environmental and social with the proposed placement on
tiers for more comprehensive feedback
impacts, as well as those that the matrix.
in 2019.
significantly influence our stakeholders, Once the matrix was updated we
In May 2018, we commenced our in accordance with the GRI Sustainability presented it once more for a final
internal stakeholder engagement with Reporting Guidelines. validation and conclusion. The result
a comprehensive survey across all of
is shown on the opposite page.
our locations in Africa. Media survey
As GRI recommends that qualitative We are aware that public and shareholder
analysis, quantitative assessment and feedback is crucial within the guidelines
discussion be used to determine if a set by the GRI board and therefore must
topic is material, we targeted a diverse be factored into every action we take in
group of employees for a representative our journey towards GRI compliance.
sampling of Dangote Cement across
Africa, with a total of 1,170 participants
across twelve locations.
Through this survey, we were able to
identify the main topics that Dangote
Cement’s employees consider to be
material for our reporting.
Identifying key topics

In addition, an external benchmarking
of topics reported by manufacturers
in both the cement and non-cement
industries was carried out, looking at
our competitors and our South African
joint venture Sephaku Cement.
This enabled us to identify key topics
considered material by others, so
we could create a meaningful and
high‑quality Sustainability Report for
Dangote Cement this year and on
which we can improve in 2019.

01 02 03 04
Dangote Cement’s materiality matrix

Resources used to identify material topics
• External benchmark of topics reported by the cement • Review of our media survey
and non-cement industries
• GRI sector supplements
• Review of our employee survey
Importance
to stakeholders
High
Corporate governance, values and corporate culture

Client satisfaction and managing long-term relationships
Labour practice: health and safety Transparency
Talent training and development
Environment: energy,
Regulatory compliance
water, emissions,
biodiversity and Sustainability
waste management management system Product safety
Privacy, data security

Human rights, forced labour Business performance
and confidentiality
and child labour
Materials, recycling
Compensation and circular economy Ethics and integrity
and benefits
Climate change
Supply chain management

Community investment
Employee engagement
and engagement
on sustainability
Consumer education
Indirect economic impact
Diversity and inclusion
Low
Low High Importance
to Dangote
Cement
• The topics shown on the materiality matrix are indicators that have been identified by
stakeholders as material in 2018.
• They also reflect issues that we have identified as material to our business operations.
Key
Less important Moderately important Important Very important

Strategic report
How the 7 Sustainability Pillars of The Dangote Way align

with global sustainability initiatives
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ENERAL DISCL * GCCA: Formerly CSI.
Financial Institutional Economic Culture Operational Social Environmental
Cultural Economic Operational Social Environmental Financial Institutional
GRI - Global Reporting Initiative UNGC - United Nations Global Compact NCCG - Nigerian Code of Corporate Governance
GRICorporation
IFC - International Financial - Global Reporting Initiative
SDG - Sustainable Development Goals NSE - Nigerian Stock Exchange
IFC - International Financial Corporation
UNGC - United Nations Global Impact
SDG - Sustainable Development Goals
Next steps NCCG - Nigerian Code of Corporate Governance
The chart above shows
NSE - how Dangote's
Nigerian Stock Exchange In addition to improving on our internal 7 Sustainability Pillars of our business,
unique 7 Sustainability Pillars align with stakeholder engagement in the in an authentic and responsive way.
global initiatives such as GRI and the forthcoming year, we will increase our
Sustainability Charter of the GCCA. scope to include the participation of
external stakeholders.
We consider it to be a work in progress
and recognise that the opinions of our This will enable us to understand in more
stakeholders, both internal and external, depth what aspects of Dangote Cement Dr Ndidi Nnoli Edozien
are critical in assessing our sustainability and its operations are the most material Group Chief, Sustainability
impact and materiality. for them and ensure that we are always and Governance
living The Dangote Way across the 25th February 2019

01 02 03 04

Strategic report
Economic
Creating long-term
value for local and
national economies
that host our
operations
KPIs
Value added Headcount Household income
₦504.1 billion 26,281 ₦29.6 billion
This represents the additional wealth Across its operations and transport, In 2018, Dangote Cement contributed
created by Dangote Cement in 2018. Dangote Cement directly employed ₦29.6B to direct household income
18,312 people in 2018, with a further in Nigeria, with an additional indirect
7,969 third-party contractors. impact of ₦32.0B

01 02
01 03
02 04
03
Cement provides the strength upon which

Africa’s infrastructure is being built. Using locally
sourced materials and services, our products help
nations become self-sufficient, enable people to
build homes and places of work and enable us to
support families and communities through the
creation of jobs that provide a decent wage
and good working conditions.
4,100Mt 247Mt
Cement consumed by the Cement consumed by
world's 7.7 billion people Africa's 1.3 billion people
Source: CemNet.com estimates. Source: CemNet.com estimates.
“I’m not just making cement, I’m helping

to build a sustainable future for my family,
my country and the whole of Africa.”
Elvis Akalusi
Head of Safety, Ibese Cement Plant

Strategic report
Markets
African cement market Positive long-term mega trends

Catching up with the rest of the world Cement demand will be driven by
After China and India, Sub-Saharan Africa will be economic prosperity, political
stability, increasing investment in
the next growth market for cement as its economies homes and infrastructure, population
emerge from poverty and enter a “build-out” phase growth and improved access to
finance for building.
that will drive strong demand.
All of these trends will ensure that
Per-capita cement consumption (kg) per-capita consumption of cement
North Asia grows strongly across Africa in the
Middle East coming decades, as countries
North Africa develop and their people create
Eastern Europe wealth and enjoy greater prosperity.
Central Europe
South Asia
Western Europe
Australasia Rapid urbanisation presents
North America a significant opportunity
Central America Between 2015 and 2050, the urban
South America population of Africa could grow by
Indian Sub-Continent more than 800 million people.
Sub-Saharan Africa
Population growth 2015–2050
0 200 400 600 800 1,000 1,200 1,400 1,600
2015 396m 637m
Global average excl. Global average
China including China 2050 1,231m 1,014m
304kg 561kg
Key:  Urban  Rural
Source: CemNet.com estimates.
Infrastructure investment is a priority

G20 report highlights urgent need for growth
In July 2018, the Global Infrastructure Hub, a G20 initiative,
estimated that US$2.4 trillion of investment was needed for
Africa to bring its infrastructure up to global standards by 2040.
This includes meeting the UN Sustainable Development
Goals of providing universal access to drinking water,
sanitation and electricity for a growing population, as well
as developing transport and telecommunications
infrastructure across the African continent.
$2.4 trillion
Investment needed
between 2016–2040

01 02 03 04
The 2018 business along its length, all of which can have
Developing markets landscape for Dangote Cement positive impacts on GDP growth. This,
Dangote Cement operates in ten in turn, feeds back into higher demand
countries across Sub-Saharan Africa, for cement. Likewise, buildings such as
SSA economic growth a region that the International Monetary factories will use cement and create jobs
and prosperity that enable people to
+3.1% Fund estimated would increase GDP by
3.1% in 2018. This compares favourably buy, build or extend their homes.
2017 +2.7% with other regional growth rates such All Dangote Cement’s integrated factories
as the 2.2% growth estimated for the are modern, fuel-efficient plants that use
2016 +1.4%
European Union and 2.2% for the G7 the latest technology to produce
Estimates: IMF Regional Economic Outlook, group of countries. high-quality cement.
October 2018.
All our ten countries of operation have This enables us to compete very
growing economies, ranging from just effectively in a Sub-Saharan cement
Nigerian GDP recovering 0.8% growth in South Africa to an industry that is fragmented and
estimated 7.5% in Ethiopia. Most of the
+1.9% economies in which we operate are
characterised by smaller-scale operators
with older technologies, some even
growing at between 2% and 5%; the using legacy technologies such as
2017 +0.8%
key Nigerian economy is still recovering wet-process production, which is
-1.6% 2016 from recession and the Nigerian National highly energy demanding.
Source: Nigerian National Bureau of Statistics, Bureau of Statistics estimated 1.9%
February 2019. growth in 2018, with IMF forecasts of As a result, we can operate as the
2.3% for 2019. lowest-cost producer and support
our cement manufacturing with strong
• N
igeria’s economy is the largest in This economic growth was reflected in investment in marketing and logistics.
Sub-Saharan Africa and the most the fact that most of our host countries
important to Dangote Cement increased consumption of cement We avoid competing on price, preferring
during the year. Our largest market, to offer a better-quality product at the
• E
stimated at US$411B in 2018 Nigeria, saw an 11% increase in cement same price as rival offerings. This has
(Source: Trading Economics) consumption, from 18.6 million tonnes in enabled us to gain good market shares
• IMF forecasts GDP growth of 2017 to 20.7 million tonnes in 2018. very quickly when we have entered new
2.3% for 2019 markets across the region.
Although its core business is dependent
• O
il sector contributes nearly 9% of on the Nigerian economy, Dangote Given recent financial pressures at
GDP, while agriculture contributes Cement is a diversified business and this other manufacturers in the region, it is
approximately 23% reduces the impact of economic and obvious that our strategy has disrupted
political uncertainties across our theatre Sub-Saharan Africa’s cement markets.
• Higher oil price, less pipeline of operations, as well as the impact of
disruption, increased agricultural By contrast, we strengthened our
seasonal factors such as rainfall. market leadership in 2018 and believe
output helping recovery after
recent recession Cement demand is driven by GDP and our strategy will enable us to continue
population growth and this anchors our growing and consolidating our position
belief that we have strong potential for in Sub-Saharan Africa.
growth in the coming decades as The opportunity is enormous. The
Read more on the Interview with countries bring infrastructure and United Nations estimates that the
the Chief Executive on pages 34–36 housing up to international standards. region’s population will grow to more
Cement is an attractive product to sell than two billion people by 2050, with
in the build-out phase of a region’s the urbanised population growing by
economic growth because it can be 800 million over the same time.
considered to act as a “GDP multiplier”. Providing housing, infrastructure and
For example, when roads are built they workplaces for them will be like building
require significant amounts of cement; Europe and America afresh within Africa.
the road itself improves logistics, That is a truly exciting opportunity for
reduces industry’s transportation costs Dangote Cement and its stakeholders.
and generates the need for buildings

Strategic report
Business model
A well-resourced industry disruptor

with a clear strategy for value creation
Relationships and resources How we create value
Financial strength Market selection Quarries

Strong balance sheet and excellent and plant procurement and mining
credit ratings give us good access
to finance at favourable terms from Competitive advantages Competitive advantages
leading local and international lenders. • A
ble to negotiate good • N
ew mines enable optimal
investment incentives extraction of limestone
Business partnerships • F
inancial strength enables us • S
trong emphasis on quality
Long-term and constructive to negotiate discounts on control before transport of
partnerships with key suppliers plant procurement raw materials to factory
and resellers in each market. • Innovative plant construction • F
actories always near mines
techniques reduce build costs
Innovation
Product innovation through strong
industry expertise and excellent
market knowledge, enabled by the
most modern technologies.
Natural resources
Access to key natural resources
such as limestone close to our
plants, nearby sources of fuel and
our use of own-mined coal in Nigeria.
Human capital
Strong commitment to staff
development through Dangote
Academy’s extensive training
programme to create the engineers Sales and distribution
Premium product
and managers we need to sustain
our business success. Competitive advantages Competitive advantages
• L
ower cost of production • Large investment in logistics
Social licence
• Strong focus on quality • Good relationships with key
A constant commitment to work market dealers
with local communities to offer jobs, • H
igher-grade cements serve
procure services and provide other need for stronger products as • Rapid loading of trucks using
building height increases automated systems
benefits such as housing, water
and healthcare. • Product innovation for specialist • FMCG approach to sales
needs, e.g. rapid-setting cement • Strong assistance programme
for block makers for resellers

01 02 03 04
Competitive advantages and business integration Outcomes in 2018
The importance of integration

Dangote Cement operates with a high Cultural
degree of business integration that Sustainability Champions trained
addresses many of the challenges 500
of doing business in Africa, for example:
Economic
Power and fuel Value of exports from Nigeria
Kiln fuel and power represent major
costs in the production of cement, $76 million
Production and shortages of either will disrupt
production at great cost. We generate
Competitive advantages
our own electricity in countries such as Operational
• M
odern, energy-efficient Local procurement
Nigeria, Senegal and Zambia. Our use of
plants reduce costs and
improve product quality
locally mined coal in Nigeria has reduced 57%
our dependence on imported coal, in
• L
arge size of plants enables addition to improving fuel security.
significant economies of scale;
Social
at 13Mta, our Obajana plant
alone has more capacity than
Social investment in Nigeria
Logistics
many African countries Third-party logistics are not so well ₦1.4 billion
• P
lants designed to operate developed in many of our markets,
at high standards of including Nigeria, so we prefer to
environmental care in an operate our own fleets to ensure Environmental
increasingly regulated efficient deliveries to customers. Decrease in CO2 emissions per tonne
industry 2%
• H
igh degree of
automation Training
We have a strong commitment to training Financial
our staff at the Dangote Academy, to
Dividends paid to shareholders
augment Africa's educational system
and produce the specialist cement ₦178.9 billion
engineers we need.
Institutional
Board composition
Independence, diversity and
international outlook of the Board
strengthened with new directors

Strategic report
Strategy
Strategic objectives Description Performance
01 We aim to be the lowest-cost • EBITDA margin of 48.3%

Focus on optimising producer in each market, by
• Increased use of
increasing output and thereby
the efficiency of our own-mined coal in Nigeria
diluting our fixed costs.
existing assets, to This enables us to improve • Higher output from
increase output and margins, strengthen our key Nigerian plants
lower costs balance sheet and increase
• Gas turbines in Tanzania
returns for our shareholders.
02 We aim to increase market • Increased output in five

Increase our leadership share through higher cement countries including Nigeria
production, backed by
of existing markets • New product launches in
excellent logistics, marketing
and be the number and customer service. By
Nigeria to address wider
one or two supplier local market needs
doing so, we improve
with at least 30% margins as we increase • Several plants now close
market share capacity utilisation. to capacity
03 We have not only made • 0.8Mt cement exported

Tap into high-value Nigeria self-sufficient in from Nigeria, generating
cement, but also turned it into $76 million in FX
export markets,
a net exporter. In addition, we
generating useful are exporting cement from
• 0.4Mt exported from
foreign currency Senegal
countries including Senegal,
that we can deploy Cameroon, Congo, Zambia • Clinker export facilities
outside Nigeria and Tanzania. being built in Nigeria
04 We will continue to look • Constructing additional

Expand prudently for attractive markets clinker grinding plants in
characterised by good Côte d’Ivoire, Ghana,
into attractive and
economic growth, large Liberia, Cameroon, to feed
high-growth cement and growing populations from Nigeria
markets across and a small or fragmented
• New 1.5Mt plant planned
Sub-Saharan Africa cement industry that is
for Niger
ripe for disruption.
05 Strong corporate governance • Increased independence

Adhere to high provides reassurance that we of Board by appointing
are committed to building a Cherie Blair and
standards of corporate
sustainable company for the Sir Michael Davis
governance and benefit of all our stakeholders
improve our efforts • Group-wide sustainability
and for the environment in
initiative drives
in sustainability which we exist.
improvements in reporting

01 02 03 04
Contribution to job creation

Economic impact of Dangote Cement As the largest cement manufacturer in
Employment in Nigeria Nigeria, and one of the larger employers
in Sub-Saharan Africa, we have created
jobs throughout our operations for many
17,447 11,414 7,936 thousands of Nigerians and Africans in
nine other countries.
Employees Employees Employees
Direct impact Indirect impact Induced impact Aside from our direct job creation, our
activities support thousands more jobs
in our supplier chain and elsewhere,
by way of indirect and induced impact.
In an era when unemployment,
36,797 jobs particularly amongst youth, has been a

huge challenge confronting many African
Sustained by Dangote Cement in Nigeria economies, the jobs we create help to
alleviate unemployment and poverty.
In Nigeria, we estimate that the more
2.11x*
Every job provided directly by Dangote Cement's
41%
The nearly 37,000 jobs sustained by
than 17,000 jobs we sustain directly
have a multiplier effect in the economy
operations in Nigeria sustains a total Dangote Cement in the Nigerian economy well beyond our operations.
of 2.11 jobs in the Nigerian economy. is equal to 41% of the 89,000 civil service jobs
in the Federal Government.
In fact, we believe that nearly 37,000
jobs are sustained in Nigeria because
* Presented multiplier refers to the impact generated among suppliers and sub-suppliers (indirect impact) as of our operations, which makes a
well as economy as a whole through household spending (induced impact). It does not account for impact
generated across distributors and retailers.
significant economic impact.
Across Africa, we believe our operations
sustain nearly 58,000 direct and indirect
Economic impact of Dangote Cement jobs in the ten countries in which
Household incomes in Nigeria we operate.
Contribution to income generation

₦29.6B ₦32.0B ₦11.1B
By creating jobs across Africa we
also drive income generation in host
Direct impact Indirect impact Induced impact communities and others that benefit
directly and indirectly from our presence.
This helps to increase local and national
prosperity to the benefit of many more
people than our headcount.
We estimate that in Nigeria, our
₦72.7B contribution to household income is
Total household income supported by Dangote nearly ₦73B, including direct, indirect
Cement in the Nigerian economy in 2018 and induced impacts.
2.45x
Every ₦1.00 of household income generated
24,000
₦72.7B would fund the building of 24,000
directly by Dangote Cement‘s operations in average-sized, three-bedroom bungalows
Nigeria generates a total of ₦2.45 in the in a rural area of Kogi State.
Nigerian economy.

Strategic report
Operational
Modern, efficient
factories producing
the highest quality
cement for local
market needs
KPIs
Group volumes Nigerian volumes Pan-African volumes
+7.4% +11.4% +0.0%
2018 23.5Mt 2018 14.2Mt 2018 9.4Mt
2017 21.9Mt 2017 12.7Mt 2017 9.4Mt
2016 23.6Mt 2016 15.1Mt 2016 8.6Mt
Group volume growth was mostly Nigerian sales grew strongly, helped Pan-African volumes were affected by
driven by a good recovery in Nigeria, by the launch of the new Falcon and stoppages in Ethiopia and Tanzania,
where building activity recovered BlocMaster products and supported by but Zambia and Senegal achieved
after recession. improved marketing and distribution. good growth.

01 02 03 04
Our focus on operational sustainability demands

that we maximise the addition of value to raw
materials and local resources, whilst being
mindful of health and safety and our impact on
the environment. We strive to improve efficiency
at every stage of the production process, from
mining to distribution, and have demonstrated
our commitment to innovation by launching
new products in our key market, Nigeria. We are
exploring ways to improve our use of alternative
fuels in our kilns and researching how we can
recycle by-products such as fly ash for use as
extenders when we grind clinker into cement.
₦418.7B 51.1%
Total value of bought-in materials Capacity utilisation across our
and services across all Dangote integrated factories, which
Cement operations in 2018 produced 21.5Mt of cement
“We don’t just make cement, we support

many businesses that participate in the
supply chain and help them thrive and
build prosperity.”
Esther Oluwatomiyin Mohammed
IT Specialist

Strategic report
Operating review
We serve market needs by working with partners to deliver

the best products and services for our valued customers and
stakeholders, through continuous innovation, operational
excellence, extensive logistics and a “consumer goods”
approach to selling one of the world’s most basic products.
FALCON
Product innovation It is ideal for block makers, enabling
In 2018 we launched two new them to turn their moulds quicker than
products into our main market, Nigeria: with other products. Both Falcon and Suitable for low-load
Falcon and BlocMaster. Falcon is a BlocMaster were developed after building needs
32.5-grade cement that addresses extensive in-house research and
needs at the lower end of the market, feedback from the market.
BlocMaster
where strength is less of a requirement.
We will continue to drive product
As such, it is ideal for applications such
innovation to meet the needs of local
as single-storey houses, walls, A stronger, more rapidly
builders across the ten markets in
mortaring and driveways. setting cement for multiple
which we operate.
applications
BlocMaster is a premium 42.5R
cement, setting rapidly to provide
excellent early strength after one day,
and superior strength after 28 days.
28 Dangote Cement
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01 02 03 04
Innovation in manufacturing Evolving needs

We have begun to explore the use of Africa’s cement market is moving
alternative fuels in our kilns to reduce our way. Our plants are designed to
carbon emissions across the Group. produce high-quality, stronger grades
One possibility we are examining is to of cement that will increasingly be
use discarded tyres as a kiln fuel. needed as Africa’s housing needs
move from low-rise homes towards
As Nigeria’s largest fleet operator, we
multi-storey developments and
have plenty of waste tyres from our
countries invest in large infrastructure
trucks. By shredding them and using
projects such as bridges and dams.
them as fuel, we can improve our
waste management, reduce our use
Total demand in our markets
of coal and gas and thereby help to
“Efficient operations
improve our operating margins.
65.8Mt
are good for the 7,423 Source: CemNet.com, estimates.
environment and for Cement delivery trucks

our bottom line. All available in our largest
market, Nigeria
Future investments
We will continue to invest in product
stakeholders should development and improvements in
be happy with our our efficiency. By gathering customer
efforts to improve feedback that drives constant
innovation and improvement, we aim
efficiency.” to maintain leadership in our key
markets across Sub-Saharan Africa.
Armando Martinez
Managing Director
Ibese Cement Plant
“Good quality control is Using high technology

to assure quality
essential to ensure the Quality control begins at the quarry,
strength and durability where we use gamma ray analysers
of our cement. Our to optimise the mixture of raw
materials heading to the plant on
customers and their conveyor belts. In the factories,
buildings depend on it.” samples are collected along the
production line and tested
Shaleen Dhagat at our robotic laboratories
Manager shown below.
Ibese Cement Plant
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Strategic report
Health and safety
As the leading cement company in Africa, we understand the

importance of health and safety for our workers, visitors and
host communities.
We are continuously improving our

processes to enhance safety, minimise
harmful incidents and achieve our “Goal
Zero” on fatalities and recordable injuries
by implementing the best health and
safety practices across all our sites.
These ensure compliance with all
applicable laws, regulations and
Dangote Cement’s own HSE policies
and standards.
We document, track and report on plant
fatalities, lost-time injuries and lost-time
injury frequency. Unfortunately, our
fatality rate increased to six in 2018,
from two in 2017, while lost-time injuries
increased from 22 to 26. Our accident
frequency rate was 30 in 2018. These
incidents were promptly reported to
management and immediate action
was taken.
We have strengthened our accident
investigation processes and competencies.
We closely monitor implementation
of all corrective actions arising from
all incidents and HSE audits. We try
to ensure that no accident is repeated.
We are also being more proactive in our
HSE risk management processes and
practices, with HSE being promoted
as a key performance indicator.
During 2018, we emphasised to our
employees the benefits of reporting
all incidents, promoted compliance
with the Group’s 15 Golden Safety
Rules and strengthened our safety
reporting format.
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We also introduced our Safe System Our Health and Safety Policy is
of Work initiative, including job hazard championed by the Chief Executive
analysis, pre-work inspections, HSE Officer and is designed to achieve
meetings and a Permit to Work system. continuous improvement in safety
We implemented corrective actions from practices for Dangote Cement's
all near misses reported, accident employees, contractors, suppliers,
investigations and HSE audits. customers, host communities, visitors
and other stakeholders.
Dangote Cement has also developed
an annual HSE Plan & Objectives, which Fatalities
will enable us manage HSE the way we
manage our core business. All operating
countries will set leading indicators with
6
2017: 2
specific action plans by completing the
Year 2019 HSE Plan & Objectives. Lost-time injuries
Leaders at all levels of the Company
are responsible and accountable for 26
2017: 22
HSE affairs in their areas of operations.
In 2019, we will develop and implement
an integrated HSE management system in Accident frequency rate
line with the newly introduced ISO 45001.
This will help us maintain our status as a 30
world‑class HSE performer.
We trained a total of 24 HSE
professionals across Obajana, Ibese
and Gboko (plant and transport) up to
the UK NEBOSH International General
Certificate standard. This is a significant
investment in capacity building with
expected long-term positive impact
on the Group’s HSE records
and performance.
We continuously train our employees
on best practices in health and safety in
the workplace and emergency response
procedures. We also ensure that we
provide the required personal protective
equipment they require to carry out their
jobs safely.
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Strategic report
Executive team
Engr. Joseph Makoju Mni, OFR. Brian Egan Arvind Pathak

Group Chief Executive Officer Group Chief Financial Officer Chief Operating Officer
Joseph was appointed to the Board of Dangote Brian joined Dangote Cement as Group Chief Arvind was appointed Chief Operating Officer
Cement in 2010, as a Non-Executive Director. Financial Officer in 2014, having previously been in January 2018 after previously being Regional
He has substantial experience of the cement an Executive Director and Chief Financial CEO of Dangote Cement Nigeria. He has more
industry in Nigeria and became Acting Group Officer of Petropavlovsk PLC and of Aricom than 30 years’ experience in the cement industry.
Chief Executive Officer in January 2018 and PLC, both of which were listed on the Main
permanent CEO in April 2018. Market of the London Stock Exchange. Before joining Dangote Cement, Arvind
worked at Reliance Cement as CEO.
He has worked in several world-class Prior to joining Aricom, he was Chief Financial
corporations including Shell, BP, Blue Circle Officer of Gloria-Jeans Corporation, a leading He was previously the Regional CEO in ACC
(UK) and WAPCO (now Lafarge Africa), which Russian apparel manufacturer and retailer. He Limited, having worked most of his tenure in
he led as Managing Director/CEO for a decade has more than 20 years’ international experience operations and maintenance of plant as well
before taking up the appointment as Managing in senior financial roles with Associated British as leading important greenfield projects for
Director/CEO of National Electric Power Authority. Foods PLC, Georgia-Pacific Ireland Limited the company.
He also served as Special Adviser (Electric and Coca-Cola HBC. He holds a degree in Electrical Engineering
Power) to the President, Federal Republic of and a postgraduate degree in Industrial
Nigeria, under two separate administrations. He also trained as an accountant with KPMG
and is a member of the Institute of Chartered Engineering and Management. He has also
He has a BSc and an MPhil in Accountants in Ireland. been trained in a number of international
Mechanical Engineering. management colleges.
Adeyemi Fajobi Juan-Carlos Rincon Kashinath Bhairappa

Head of Sales and Marketing Head of Transport Director of Projects
Adeyemi joined Dangote Cement in September Juan-Carlos joined Dangote Cement in 2012 Kashinath joined Dangote Cement in
2011 as Regional Sales Director and was and has 24 years’ experience in the cement February 2001 as a General Manager and
subsequently deployed to head depot operations. industry, having worked in multinational cement was subsequently elevated to Deputy Director
groups such as Diamante, Cemex, Asamer, of Projects, responsible for looking after
He took over the biggest market/region, Lagos, Dangote Cement’s projects.
and the Austrian engineering consultancy
in Nigeria in 2015 from where he was elevated
firm Austroplan.
to National Sales Director, responsible for He previously worked with different cement
looking after Dangote Cement’s sales in Nigeria. He brings to the Group a high degree of manufacturers in India, including BK Birla
He has worked in several companies such as managerial knowledge and international Group (Cement), Ambuja Cements and
PWC, KPMG, BJ Services, Globacom and experience gained from working in the global Grasim Industries Limited at different levels
Westcom on different roles and assignments. cement industry at sites in different countries. in project management and execution.
He obtained a First Class BA in Mathematics He has held Senior Management positions in He obtained a BA in Mechanical Engineering
from Obafemi Awolowo University, Ile Ife, Osun different parts of the world, including time as from Karnataka University, Karnataka State,
State in 1992 and an MBA from Aston Business Chief Executive Officer of the Libyan Cement in 1973.
School, Birmingham, UK. Company, as President of Dalmatia Cement
in Croatia, and as Regional Human Resources
Director for Cemex in South-East Asia.

01 02 03 04
Knut Ulvmoen Mahmud Kazaure Musa Rabiu

Supply Chain Director Group Chief Legal Counsel Group Chief Human Resources Officer
and Company Secretary
Knut joined Dangote Industries Limited in Mahmud joined Dangote Cement in 2011 Musa joined Dangote Cement in March 2017
1996 as Finance Director. He previously had and has broad legal experience including as Group Chief Human Resources Officer.
extensive finance experience in companies commercial law, international business and He is a strategic management professional
including Norcem, Bulkcem and Scancem. civil litigation as well as contractual and with over 30 years’ experience acquired while
legislative drafting. working for a number of leading companies
As Group Managing Director of Dangote in the country including the Nigerian National
Cement, from 2002 to 2007, he was He is licensed to practise law in Nigeria, Petroleum Corporation (NNPC).
instrumental in Dangote Cement’s transition in the States of Maryland and New York in
from importing cement to becoming Nigeria’s the United States of America, and also before He also worked for Shell Petroleum Development
leading manufacturer. the Supreme Court of the United States. Company, between 1990 and 2008, in various
capacities. He was previously Registrar/CEO,
As part of this expansion, he was a key figure He obtained a Bachelor of Laws degree Chartered Institute of Personnel Management
in the acquisition of Benue Cement Company from Ahmadu Bello University, Zaria, in 1986 (CIPM), and a Fellow of the Institute.
and in the development of plans to build the and was called to the Nigerian Bar in 1987.
Obajana Cement factory in Kogi State. He holds a BSc in Economics and an MSc in
He also obtained a Master of Comparative Economics, with specialisation in Econometrics,
In addition to his work in cement, he was also Jurisprudence degree from Howard University both from Ahmadu Bello University, Zaria. He
involved in the development of Dangote School of Law, Washington DC, in 1994. also gained the degree of Doctor of Business
Industries Limited’s flour and sugar operations. Administration at Leeds Beckett University, in
the United Kingdom.
Oliver Obu Dr Ravi Sood K R Rao

Group Financial Controller Designate Director of Operations, Nigeria Director of Operations, Pan-Africa
Oliver joined Dangote Industries as a Ravi was appointed Director of Operations, Rao joined Dangote Cement in 2006 to manage
management trainee in 2012, specialising Nigeria in June 2018. He has over 34 years some of the Group’s expansion projects. His
in finance. After substantial in-house training of success in managing cement manufacturing experience in project management spans 30
he was assigned to Dangote Cement in 2015, units in different countries. He was Plant Director years holding senior positions in management
as Head of Internal Reporting and Planning. Tabuk Cement Co., Saudi Arabia, Technical consultancy and industrial engineering.
Director, with Holcim in Eastern Europe and
He is a key member of the Company’s Relation Director with Lafarge, Austria. He is currently the Director of Operations for
Finance team, shaping its internal reporting the Pan-African region, with responsibility for
and planning framework as well as working Previously, he was the Director of Research & all operations outside Nigeria.
on the development of financial models for Development at Dangote Cement, during
which he made substantial contribution to He holds a BTech in Electrical Engineering which
numerous projects undertaken by the Group.
Dangote Cement product development he obtained at JN Technological University,
Oliver holds a BA in Economics and Statistics (42.5R, 3X brand). He holds a PhD in India, in 1977 and an MTech in Industrial
from the University of Benin and an MBA from Materials Science from the Indian Institute of Engineering and Operations Research from
the Lagos Business School in Nigeria. Technology, Delhi. the Indian Institute of Technology.

Strategic report
Interview with the Chief Executive
Revenue up 11.9%
₦901.2B
2018 ₦901.2B
2017 ₦805.6B
2016 ₦615.1B
EBITDA up 12.1%
₦435.3B
2018 ₦435.3B
2017 ₦388.1B
2016 ₦257.2B
Engr. Joseph Makoju Mni, OFR.
Group Chief Executive Officer
Cement volumes up 7.4%
23.5Mt
How would you summarise
A successful
Dangote Cement’s performance
in 2018?
It was a very good year for the Group
as a whole, despite a number of local
year and a
challenges that emphasised the importance
of having a diversified business. We
increased our overall sales volumes by
7.4% to 23.5 million tonnes, with revenues
strategy for
increasing by 11.9% to ₦901.2B and
EBITDA rising by 12.1% to ₦435.3B.
Our Group margin was 48.3%, which
is very good for our industry and keeps
sustainable
us well ahead of our competitors,
putting us at the top of the global
cement industry.
growth
What were the highlights
for Dangote Cement?
If we look at the whole year, we had
a very good recovery in Nigeria and it
was supported by much stronger
performances in Zambia, where we
increased volumes by 28.0%, and
in Senegal, up 9.3% and where we
were operating almost at full capacity.
But there were other highlights too,
like new product launches in Nigeria,
demonstrating our capability for
innovation and responsive customer
service, and our Group-wide
Sustainability Week in September.

01 02 03 04
Key strategic aims
Optimise the Continue to Tap high-value Target promising Adhere to high

efficiency of our increase our export markets, growth markets standards of
existing assets share in existing especially where across Africa corporate
so we can produce markets through we can substitute to expand our governance
more cement and improvements in imports from footprint and and improve
at higher margins marketing and beyond Africa improve returns sustainability
distribution
Delivering superior
and sustainable
risk-adjusted returns
on our investments
The Dangote Way
What were the local challenges Even now, the motive for the incident is Sustainability features much
you faced? unclear. I travelled to Ethiopia straight more in this Annual Report;
In our main market, Nigeria, which away to comfort their families and be does that reflect a shift in
accounted for 60.2% of Group sales with staff at the plant in what was a very attitudes at Dangote Cement?
volumes, we saw good growth of 11.4% difficult time. I think our attitudes towards sustainability
over the year, despite heavy rains that I needed to learn what had happened are always being enhanced.
caused severe flooding and hit demand from a security perspective, to meet the
and logistics in September and October. The major European companies had
authorities and to listen to local people. much longer time to adopt best practices
In Pan-African operations we had some Obviously, we had made it a priority in sustainability, so the target we have set
civil disruption in Ethiopia that affected to focus our attention on maintaining is quite ambitious but it is definitely a
production and distribution in a market and enhancing good relationships good goal to have.
that had been so good for us in with the local communities around
previous years. I was delighted by the enthusiasm I saw
our plant because that was in during our first Sustainability Week, which
Our problems in Tanzania continued until everybody’s best interests. was held in September 2018.
November, when we finally got our gas In a wider context, we are looking
turbines running to replace the expensive After attending some of the sustainability
closely at the way we relate with local workshops it became obvious that staff
diesel generators we had been using. communities across our sites of operation are very committed to the 7 Sustainability
That will help us transform a monthly in Africa. We continue to look beyond Pillars and their role in the development of
loss into a monthly profit of about the dealing with local leaders and ensuring Dangote Cement.
same magnitude, and should have quite we engage with the rest of the
an impact on profitability in 2019. community around them. In addition, during the year I met with
many investors around the world and
It is our priority to continuously improve it was obvious that sustainability is very
As CEO, how did you deal with our community engagement everywhere important in their decision whether or
the incident in Ethiopia in which we operate. Our emphasis is on not to invest in a company such as
three colleagues lost their lives? economic empowerment of citizens Dangote Cement.
On a personal level I was heartbroken and our host communities, not just
to lose people I knew and worked giving them handouts.
with, and in such a shocking manner.

Strategic report
Interview with the Chief Executive continued
The attractions of Sub-Saharan Africa’s cement market
Sub-Saharan Africa significantly

lags global average per-capita
Cement is an essential building
Future cement consumption.
material with no viable substitutes;
Africa will need billions of tonnes in demand Consumption Africa is the next major growth
coming decades. market for cement, needing billions
of tonnes in the coming decades.
Dangote Cement’s key markets are Markets
Nigeria, Ethiopia and South Africa; Cement demand driven by increasing
cement “majors” with high net debt/ Major population, urbanisation, infrastructure,
EBITDA are less able to finance housing growth and prosperity.
growth
entry to these markets.
Huge opportunity to replace imports
Key barriers to entry include high from outside of Africa as countries
Current
capital cost of entry, construction focus on developing their own
costs
time and access to resources. manufacturing base or ban imports
Current of bulk cement in favour of clinker
Many incumbents are sub-scale demand for grinding with local materials
and use older technologies, and so
to make cement.
they are vulnerable to well-funded Disruption
industry disruptors. Opportunity
How does Dangote Cement A number of our plants are already What is the outlook for
thrive in a challenging operating running at high utilisation and we will Dangote Cement?
environment? see higher output in Congo, Tanzania I think the future looks very bright for us.
We have many competitive advantages and Sierra Leone in 2019. We have established a very strong
because of our size and strength and Beyond these organic efforts, we are platform for future growth and we are
they enable us to do well in a regional still pursuing an expansion strategy that looking to expand and consolidate our
cement market that is characterised by will involve new integrated factories in position across Africa.
smaller-scale producers, many of which Nigeria and Niger and new grinding We will continue to focus on building an
are using older technologies. capacity in countries such as Ghana efficient and sustainable business that
We can be considered a disruptor in our and Côte d’Ivoire. will be leading its market for many years
industry because of this; we focus on By the end of 2019 we will have clinker to come.
producing the best product at the lowest export facilities ready in Nigeria to serve
cost and backing it with good service Cameroon and then the new plants as
and logistics. they come onstream.
How is the Company’s strategy What are Dangote Cement’s

evolving now it has completed priorities for 2019? Engr. Joseph Makoju Mni, OFR.
the first phase of its expansion? We will focus on efficiency gains and Group Chief Executive Officer
For the factories we have opened in the achieving higher sales in domestic and 25th February 2019
past few years, our strategy is to get export markets.
them to high levels of capacity utilisation
and that will help them to become A major priority for us is to get these
more profitable. export terminals onstream so we
can replace non-African imports in
This means increasing their sales, either Cameroon, earn foreign currency for
domestically or in export markets, and Nigeria and increase the utilisation
we are focusing on both. Exports are of our Nigerian plants.
particularly helpful because they
generate foreign currency. We are also committed to further
improving sustainability efforts, from
community relations to environmental
care, and these initiatives are being
driven from the top.

01 02 03 04
Regional overview
Nigerian operations
Nigeria’s cement market recovered well
in 2018. We estimate that total market
consumption was 20.7Mt, up 11.0% on
the 18.6Mt sold in 2017. Market growth
was stronger in the first seven months of
the year, before unusually heavy rain and
flooding affected demand in key regions,
which depressed sales from mid-August
to mid-November.
Dangote Cement’s Nigerian operations
increased volumes by 11.4% to 14.2Mt
in 2018, including export sales of
nearly 0.8Mt.
Ravi Sood K R Rao Domestic sales in Nigeria were 13.4Mt,
Director of Operations, Nigeria Director of Operations, Pan-Africa compared to 12.0Mt in 2017, because
of higher local building activity as the
economy recovered from recession.
As a result of our volume growth, Nigeria
increased revenue by 11.9% to ₦618.3B
and EBITDA by 10.2% to ₦397.4B at a
margin of 64.3%.
Operating Pan-African operations

Pan-African operations sold 9.4Mt of
cement in 2018, level with cement
review
volumes sold in 2017. Factors depressing
sales included plant shutdowns in
Tanzania due to operational reasons,
civil disruption in Ethiopia and a
reduction of imports into Ghana
Both Nigerian and Pan-African from Nigeria.
operations performed well in 2018 However, stronger performances were

recorded in other Pan-African territories,
despite local market and operating notably Zambia, and we benefited from
increased sales in the recently opened
challenges caused by heavy rain, facilities in Congo and Sierra Leone.
civil unrest and plant stoppages. The total Pan-African volume represents
39.8% of Group sales volumes before
inter-company adjustments.
Despite level volumes, Pan-African
revenues of ₦283.3B were 9.6% higher
than 2017, because of higher pricing
across the region, and represented 31.4%
of total Group revenues.
The region’s EBITDA of ₦49.1B (before
central costs and eliminations), was up
28.2% on 2017's EBITDA and contributed
11.0% of Group EBITDA, at a margin
of 17.3%, compared to a margin of
14.8% in 2017.

Strategic report
Operating review
Nigeria
Nigeria is where we began operations more than a decade
ago and where we now have three of the largest and most
efficient cement plants in Sub-Saharan Africa.
Sales volumes Revenue
Lagos 14.2Mt
2017: 12.7Mt
₦618.3B
2017: ₦552.4B
11.4% 11.9%
Key statistics Market Performance

Nigeria is the largest market for cement Our Nigerian plants sold 13.4Mt of
Demographics in Sub-Saharan Africa and a highly cement into local markets in 2018,
Population 198m attractive production centre, having higher than the 12.0Mt sold in 2017,
Urbanisation 50% significant deposits of limestone close due to a good recovery in infrastructure
2018 GDP growth 1.9% to large demand centres and good and housing after the recession.
Market economic prospects that will enable its
Although the local market grew strongly
population of 198 million to increase
Total capacity 48.2Mta up to July, sales were then affected by
their consumption of cement in the
Cement consumption 105kg/person the heavy rains and flooding that affected
coming decades.
Total market 20.7Mt central Nigeria from mid-August, with
Furthermore, Nigeria has local sources sales only recovering from mid-November.
Dangote presence
of fuel such as gas and coal, prohibits
Location Obajana, Ibese, Factors in our improvement included the
importation of cement and incentivises
Gboko new Falcon and BlocMaster products,
exports into neighbouring countries,
Capacity 29.3Mta new bonus schemes, improved routes
many of which lack limestone. Therefore,
to market, better customer support and
Type Integrated as the largest producer in Nigeria, our
initiatives including warehousing and the
Total staff 17,447 home market can be considered the
greater availability of delivery trucks,
Trucks 7,423 whole of the ECOWAS trading region,
helped by our successful Customer
Kiln fuel Gas, coal which represents about a third of Africa
Trucks Empowerment Scheme.
by countries, population and GDP, as
Power Gas, diesel
well as neighbouring Cameroon.
Living The Dangote Way

During our first Sustainability Week,
hundreds of staff from Head Office
and our three plants took part in
initiatives to help our local
communities, ranging from the
donation of healthcare equipment to
litter clearing. During the week, we
reinforced a culture of sustainability
among our staff and we believe that
a ripple effect will be apparent in
how they conduct their jobs and
personal tasks. Our Sustainability
Week aligned with the 2018 World
Environmental Day, which focused
on managing plastic waste.

01 02 03 04
Tanzania
Our 3.0Mta factory in Mtwara has now been installed with
gas turbines to power the factory, which will enable us to
produce more cement and at positive margins.
Sales volumes Revenue Dar es Salaam
0.6Mt
2017: 0.8Mt
₦19.5B
2017: ₦16.7B
-17.4% 17.1%
Market Performance Key statistics

Tanzania’s robust economy has driven Long delays to the installation of gas
growth in infrastructure and housing, turbines obliged us to reduce production Demographics
with major government projects at Mtwara in order to avoid substantial Population 60m
including roads, railways and airports. losses incurred by powering the plant Urbanisation 34%
with temporary diesel generators. 2018 GDP growth 5.8%
At 3.0Mta, our integrated plant at Mtwara
is the largest of Tanzania’s 13 cement As a result, our sales volume fell from Market
plants, most of which are located near 757Kt in 2017 to 625Kt in 2018. Total capacity 13Mta
the coast. We benefit from close proximity However, with the gas turbines Cement consumption 88kg/person
to gas supplies and are now able to operational from November, we were Total market 5.2Mt
fuel our kilns and electrical generators able to increase production and expect
Dangote presence
with gas. In addition, we are exploring EBITDA to turn positive in Q2 2019 as
the potential to mine our own coal volumes increase. Location Mtwara
in Tanzania. Capacity 3.0Mta
Recent price competition in the market
Type Integrated
Although we are some distance from was a factor in the suspension of
the capital, Dar es Salaam, we have a production at two factories owned by Total staff 1,273
delivery fleet of nearly 600 trucks that another producer, which provides us with Trucks 565
will help us to achieve a good market an opportunity to build market share. Kiln fuel Coal, gas
share within Tanzania, as well as enabling Power Gas
us to export into Mozambique.

We are part of the grand
infrastructural transformation taking
place in Tanzania. We touch millions
of lives by providing cement used
for construction of housing,
railways, roads, airports and other
infrastructure critical for Tanzania’s
continuing economic development.
We are committed to the long-term
development of the country and will
continue to develop and provide
quality products that will support
rapid urbanisation and infrastructure
development.

Strategic report
Operating review continued
South Africa
Although its economy is subdued, South Africa remains
one of Africa’s largest markets for cement. Our facilities at
Aganang and Delmas can produce up to 2.8Mt per year.
Johannesburg

Cannot be published due to local
competition laws ₦59.0B
2017: ₦57.3B
-6.4% 2.9%

The subdued state of South Africa’s Our sales volumes fell by 6.4% in South
Demographics cement market reflects the country’s Africa in 2018. Aside from the muted
Population 57m economy, which is estimated to have economy, sales were affected by lower
Urbanisation 66% grown by less than 1% in 2018. demand, higher imports and
2018 GDP growth 0.8% increased competition.
South Africa has about 25Mta capacity,
Market according to CemNet.com, but effective Furthermore, the cement blenders
Total capacity 25Mta capacity is estimated at 17Mta increased their volumes into the market
Cement consumption 245kg/person to 18Mta. Although local competition to approximately 1Mt as a result of low
Total market 14Mt rules prohibit us from publishing sales bulk cement pricing, and imports
volumes, our factories operate at good increased by 80% year on year.
Dangote presence
capacity utilisation in South Africa. Our
Location Aganang, The recent increases in VAT and fuel prices
facilities at Aganang and Delmas are
Delmas were other factors in the fall in sales.
among the most modern and efficient in
Capacity 2.8Mta the country, serving key markets around With pressure on volumes, we focused
Type Integrated Gauteng and other provinces such as attention on marketing, cost reductions
Total staff 797 Limpopo, Kwa-Zulu Natal , Mpumalanga and efficiency improvements.
Trucks Outsourced and North West. South Africa is one of
Kiln fuel Coal the few countries in which we outsource
distribution and there is a well developed
Power Grid
retail market.

Operating in one of the largest
cement markets in Africa, with 66%
urbanization, Dangote Cement
South Africa strives to contribute
towards industrial growth and
economic development of
South Africa and making cement
accessible and affordable for its
population of 57m. While serving
the urban centres, we also aim to
ensure inclusiveness by making
concerted efforts to serve markets
in both sub-urban and rural areas
of the country.

01 02 03 04
Ethiopia
Strong economic growth and a large and expanding
population make Ethiopia an attractive market for cement,
with high demand for infrastructure and housing.
Sales volumes Revenue Addis Ababa
2.1Mt
2017: 2.2Mt
₦51.4B
2017: ₦54.5B
-6.2% -5.7%

Ethiopia’s strong economy was expected We sold nearly 2.1Mt of cement in 2018,
to record 7.5% GDP growth in 2018 and which was 6.2% lower than 2017 because Demographics
its construction industry is flourishing as of disruptions caused by civil unrest in Population 105m
the country builds houses and major the Oromia region, which affected both Urbanisation 21%
infrastructure projects under its Growth production at the factory and distribution 2018 GDP growth 7.5%
& Transformation Plan. along the local road networks. Market
Although its market is estimated at more Production picked up as the political Total capacity 17Mta
than 9Mt, per-capita consumption lags situation improved with the appointment Cement consumption 84kg/person
behind many African countries at about of the new Prime Minister. Additionally, Total market 9.1Mt
84kg/person, suggesting considerable we focused on working more closely
Dangote presence
growth potential as the country modernises with local people in operations and
and people migrate to cities. mining, after consultation with community Location Mugher
leaders following plant-specific Capacity 2.5Mta
While the country seems overserved
disruptions. Type Integrated
with 17Mta capacity, much of it is
ageing, small-scale and unable to Efficiency initiatives in 2018 included Total staff 1,819
compete with modern cement more use of backhaul by cement Trucks 443
production facilities like our 2.5Mta delivery trucks and the outsourcing of Kiln fuel Coal
plant at Mugher, particularly given our coal deliveries from Djibouti to improve Power Grid
additional strength in distribution. supply to the plant.

In Ethiopia, we are making progress
in further improving our relationships
with the local community in a region
that has experienced troubles over
the past two years. We aim to offer
more employment and business
opportunities for the local people
and have been working with them
to resolve our differences. We look
forward to a harmonious and
mutually beneficial relationship
with the community.

Strategic report
Cameroon
Cameroon lacks sufficient limestone for large-scale
cement manufacturing so we import clinker for grinding.
Soon, we will supply clinker from Nigeria and Congo.
Yaounde
1.2Mt
2017: 1.2Mt
₦48.7B
2017: ₦43.2B
-1.8% 12.8%

Cameroon’s strong economy is With a new competitor in the market,
Demographics expected to have achieved 3.8% sales volumes at Cameroon fell marginally
Population 24m growth in 2018, supporting good to 1.2Mt and we estimate our market
Urbanisation 56% demand for cement, driven by housing share to have been 41%.
2018 GDP growth 3.8% and infrastructure projects.
We focused on marketing improvements
Market We estimate the total market to have with initiatives such as salesforce training,
Total capacity 5.7Mta been 2.9Mt in 2018, supplied by national reinforcement of distributor sales
Cement consumption 120kg/person capacity of 5.7Mta, most of which is capabilities, extending credit terms and
Total market 2.9Mt provided by six clinker grinding plants accelerating distributor bonus payments.
around the port of Douala. Our 1.5Mta
Dangote presence In addition, we increased our visibility
grinding plant, opened in March 2015,
Location Douala in retail outlets with promotions and
is one of the country’s largest.
Capacity 1.5Mta point-of-sale materials.
Imports of bulk cement were banned in
Type Grinding We also focused on improving logistics
2016. Although our plant in Cameroon
Total staff 720 to extend our reach in the market
has mostly relied on clinker from outside
Trucks 191 and compete more effectively with
Africa, we intend to supply it with our
Kiln fuel n/a other suppliers.
own clinker, produced at factories in
Power Grid Nigeria or Congo.

We are actively working to help and
empower our local communities.
We reclaimed land for the Douala
community to celebrate its culture,
built a pharmacy for the Batkoe
mining community and a town hall
for the Tombel mining community,
and provided scholarships to
help students of the Deido and
Batoke communities.

01 02 03 04
Congo
Our recently opened 1.5Mta factory in Mfila can supply
almost all the country’s needs, reduce its dependence on
imported cement and enable it to become an exporter.
0.2Mt
2017: 0.03Mt
₦7.5B
2017: ₦1.0B Brazzaville
598% 639%

The Republic of Congo has a well- In the absence of major infrastructure
developed economy that is reflected in projects, the cement market was mostly Demographics
its relatively high per-capita consumption driven by commercial building and Population 5m
of cement, at an estimated 150kg/ private infrastructure projects. Urbanisation 67%
person. However, government spending 2018 GDP growth 2.0%
We estimate the market to have been
is low at present, which is depressing Market
about 0.74Mt in 2018 and our factory
demand for cement.
sold 0.2Mt of cement. Total capacity 3.2Mta
Opened in September 2017, our 1.5Mta Cement consumption 150kg/person
We achieved market leadership in
Mfila plant is the largest of five plants in Total market 0.7Mt
the third quarter with the introduction
the country.
of a new pricing and bonus scheme Dangote presence
It is ideally located to supply the capital, in June 2018, backed by an increased Location Mfila
Brazzaville, as well as export markets in focus on retail sales and the opening Capacity 1.5Mta
the Democratic Republic of Congo and of a depot in Brazzaville in September.
Type Integrated
Central African Republic.
Our sales were boosted by exports to Total staff 612
We are also exploring the possibility of the CAR during the year and we see Trucks 29
exporting clinker to our grinding plant in potential to export more clinker to Kiln fuel Coal
Cameroon and made our first shipment Cameroon in 2019.
Power Grid
in Q4 2018.

As the country’s largest producer,
we provide market leadership
through innovative pricing and retail
strategies as we contribute towards
meeting the cement demands of
Congo. Not only are we helping the
country become self-sufficient in
cement, we also plan to increase
its exports, benefiting its economy.

Strategic report
Ghana
An important market for cement in West Africa, Ghana
lacks sufficient limestone and is obliged to import clinker
or bulk cement, which we plan to supply from Nigeria.
0.8Mt
2017: 0.9Mt
₦25.4B
2017: ₦28.1B
Accra
-13.1% -9.7%

With per-capita consumption of about Compared with 2017, we sold less
Demographics 213kg/person and total demand of cement in Ghana in 2018, mainly as
Population 29m more than 6Mt in 2018, Ghana is an a result of our decision to scale down
Urbanisation 56% attractive market for cement in West importation by road from Nigeria
2018 GDP growth 6.3% Africa. Its economy is strong and this is because of the cost and complexity
Market driving housing and infrastructure growth involved.
across the country.
Total capacity 11.6Mta Replacing these imports with cement
Cement consumption 213kg/person However, Ghana lacks sufficient limestone imported by sea took some time and
Total market 6.2Mt to support large-scale manufacturing. also contributed to the fall in sales.
As a result it relies upon imports of
Dangote presence Efficiency initiatives undertaken in 2018
clinker and bulk cement, although the
Location Tema included an effort to reduce customer
latter is likely to be prohibited in the
Capacity 1.5Mta waiting and collection times at the plant.
near future.
Type Import In addition, we encouraged an increased
At present we import bulk cement but
Total staff 1,525 level of self-collection to offset the
plan to build a grinding plant at Takoradi,
Trucks 1,127 reduction in deliveries of cement directly
with clinker being supplied from our
Kiln fuel n/a from our Ibese factory in Nigeria.
Nigerian operations. It will compete
Power Grid against several other grinding plants
along the Ghanaian coast.

We are enhancing our customer
handling efficiency by reducing
customer waiting and supply time.
We will continue on this path to
ensure that we create satisfied
customers who in turn create other
customers for us, through word-of-
mouth referrals. Our goal is to
increase our market share and
reduce the country's reliance on
cement and clinker manufactured
outside of Africa.

01 02 03 04
Senegal
Senegal commenced operations in 2014 when it was already
oversupplied by local producers, but quickly gained a
significant market share selling higher-quality cement.
Dakar
1.4Mt
2017: 1.3Mt
₦35.0B
2017: ₦28.8B
9.3% 21.5%

Senegal’s booming economy makes Senegal sold nearly 1.4Mt of cement in
it an excellent market for cement, with 2018, improving on almost 1.3Mt sold Demographics
per-capita consumption of about 235kg/ in 2017, and representing capacity Population 16m
person supporting growth in housing utilisation of 91%, partially due to an Urbanisation 47%
and infrastructure projects such as increased proportion of 32.5-grade 2018 GDP growth 7.0%
the Dakar Airport Railway and the cement, which requires less clinker per Market
Ilaa-Touba Highway. tonne compared to the stronger grades
Total capacity 8.2Mta
we initially launched in the market.
Unlike many countries along the coast of Cement consumption 235kg/person
West Africa, Senegal has large reserves The new 32.5-grade product enabled us Total market 3.8Mt
of limestone that make it an ideal place to address the lower end of the market
Dangote presence
from which to export both inland to Mali with a product more suited to its needs.
and to coastal neighbours such as Location Pout
In addition, although most sales were in Capacity 1.5Mta
Gambia.
domestic markets, we exported 428Kt
Type Integrated
Although the market was oversupplied of cement, mainly to Mali, and aim to
when we entered in 2014, we quickly increase our exports in 2019. Total staff 751
took significant market share by selling Trucks 59
higher-quality cement at competitive Kiln fuel Coal
prices from our 1.5Mta factory in Pout. Power Coal

Senegalese culture is important to
us. We have supported and actively
participated in the cultural days of
host communities such as Pout,
Keur, Moussa, Montrolland and
Diass. In addition, we work to help
local communities build schools,
healthcare centres and roads, and
encourage women's empowerment
through education. We do these
because of our firm belief that a
thriving socioeconomic environment
is necessary for the country to
flourish and for our business to
remain sustainable.

Strategic report
Zambia
Our 1.5Mta factory at Ndola sits in the heart of the
Copperbelt mining area, with good access to Zambia’s
major cities and the Democratic Republic of Congo.
Luska 1.0Mt
2017: 0.8Mt
₦33.1B
2017: ₦25.1B
28.0% 31.7%

Zambia’s relatively strong economy is The Ndola factory sold 1.0Mt of cement
Demographics being supported by rising global copper in 2018, a strong improvement on the
Population 17m prices that have led to an increase in 0.8Mt sold in 2017.
Urbanisation 44% mining activity in the country.
The increase in demand came from
2018 GDP growth 3.8%
The market has 4.6Mta capacity, including infrastructure and mining support
Market a new 1.0Mta plant commissioned by a projects and also benefited from
Total capacity 4.6Mta competitor in Q3 2018. Our 1.5Mta improved harvests that increased
Cement consumption 100kg/person factory at Ndola is the largest of five disposable income.
Total market 1.8Mt plants in the country, able to serve its
During the year we improved our
major demand centres and even export
Dangote presence distribution with the use of third-party
to the DRC. Cement production is
Location Ndola logistics to complement our own direct
centred around two areas, near the
Capacity 1.5Mta delivery fleet, as well as some use of rail
capital Lusaka and around Ndola, in the
networks for longer-range distribution.
Type Integrated Copperbelt region.
Total staff 1,209 We are actively taking steps to use waste
Cement consumption is relatively low,
Trucks 265 materials in our kiln and considering the
at 100kg/person, but this should
Kiln fuel Coal potential to use fly ash, which is a waste
increase as major infrastructure projects
material from our on-site power station,
Power Coal are commissioned and housing
as an extender for our cement.
development improves.

We continue to maximise our size
competitive advantage to lead the
industry in environmentally friendly,
safe and sustainable cement
production through operational
innovations such as the use of
waste materials to fuel in the
operation of our kiln. This will help to
reduce the plant’s carbon footprint.

01 02 03 04
Sierra Leone
Now that the country has begun to recover from the
recent Ebola crisis, its demand for imported cement
is being driven by the return of mining operations.
Freetown
0.1Mt
0.1Mt
₦3.7B
2017: ₦3.0B
19.8% 27.6%

Sierra Leone is a relatively small market Our import facility began operations in
for cement, consuming about 0.5Mt a January 2017 and sold 91Kt that year. Demographics
year in the wake of the Ebola crisis that In 2018, we increased sales to 109Kt, Population 8m
badly affected its economy. benefiting from the improved economy Urbanisation 42%
and greater demand. 2018 GDP growth 3.7%
The IMF estimated 2018 GDP growth
would be 3.7% with further growth The increase in our sales was supported Market
expected in 2019. by new corporate customer wins, Total capacity 1.0Mta
increased credit sales backed by bank Cement consumption 75kg/person
Per-capita consumption is very low at
guarantees and the deployment of more Total market 0.5Mt
75kg/person, but economic recovery
point-of-sale material to raise our brand
and increasing commodity prices will Dangote presence
profile at retail outlets.
drive growth in the coming years, Location Freetown
along with increased foreign aid and In addition, we increased our marketing Capacity 0.5Mta
a resumption of building projects efforts beyond Freetown and established
Type Import
suspended by the private sector. our presence in the upcountry regions.
Total staff 128
Lacking limestone, Sierra Leone is Our 42.5-grade product has gained Trucks n/a
an obligatory importer of cement, good recognition in the local market Kiln fuel n/a
with just two suppliers including our but continues to compete against
Power Grid
0.5Mta import and distribution facility lower-priced 32.5-grade imports
in Freetown. from our competitors.

We are working to increase our brand
visibility by increasing our points of
sale, expanding our markets and
establishing our presence in the
upper regions of the country, to
make our cement more widely
available in Sierra Leone’s
recovering economy.

Strategic report
Social
Nurturing the
growth and the
wellbeing of our
employees and
host communities
KPIs
Total staff trained Community scholarships Graduate engineers trained
11,707 employees 972 students 46
Dangote Academy offered 114 different Nearly 1,000 Nigerian students Dangote Academy trained 46 students
training courses that were attended by benefit from Dangote Cement’s on its Graduate Engineers Training
more than 11,000 people scholarship scheme. Scheme in 2018.

01 02 03 04
One of our primary business objectives is to

build a workplace that attracts and retains the
best people in all our countries of operation.
This is critical because the quality of the
workforce determines the quality of our
products and our customer care.
We understand that we cannot achieve
sustainable business growth without
an empowered, well‑trained and
motivated workforce.
2,085 8,160
New employees Total hours of training
engaged in 2018 courses offered by
Dangote Academy
Dangote Cement is a people-focused and

highly diversified company with a strong
health and safety culture.

Strategic report
Community
Supporting our
host communities
Strategic social investment is achieved through collaborative
community projects based on our core themes of education,
empowerment, employment and improvements in health.
Working with our partners

Dangote Cement Sustainability
Champions pictured at the Oniru
Block Makers' village in Lagos with
Mr. Olanrewaju Olaniran, Chairman
of the Unity Block Makers'
Association of Nigeria (centre).
The Champions spent a day
clearing litter around the local area
in an initiative that was appreciated
by the large number of artisan block
makers who are customers of
Dangote Cement.
It was one of many projects
undertaken with great enthusiasm
by volunteers in six countries during
our Sustainability Week.
13 locations
Our volunteers undertook
community projects in 13
locations across six countries
during Sustainability Week.

01 02 03 04
Project description Others have gone into self-employment,

Selection and sponsoring of secondary creating jobs for themselves and others
and tertiary education for children in in the local community.
local communities.
The remainder still enjoy the scholarship
Beneficiaries programme at their school or college.
Students from our Ibese plant’s host
The implementation of the scholarship
communities of Wasimi-Imasayi, Abule
programme has reportedly increased
Maria, Abule-Oke, Ajibawo, Onigbedu II,
children’s enrolment in local schools
Aga, Balogun, Ijako-Orile, Aga-Olowo,
in these communities, which is an
Ibese scholarship programme Onigbedu I, Atola, Afami, Babalawo,
obvious benefit to the children, their
Ibese, Imasayi and Kajola.
families and the local community.
Impact
400
We hope to roll out scholarship
Some of our scholars have already secured
schemes in other local communities
jobs, either at our plant or elsewhere
Students benefiting from that host our operations.
in the community. Their salaries will help
Dangote Cement scholarships to support them and their families and
in our host communities benefit the local economy.
in Ogun State, around
the Ibese cement plant.
Supporting our host We value their useful feedback on how Contribution to income
communities we could be better neighbours and generation in host communities
Our host communities are among our partners for development. The direct and indirect jobs we create
most important stakeholders. have a multiplier effect on the economies
Resolving issues where we operate, generating income
They live close to our plants and are
Our host communities are provided with opportunities for our internal and
impacted by their operations in ways
functional platforms through which they external stakeholders.
that can be beneficial or detrimental.
can express their worries and concerns
For example, the total income generated
We understand the need to continue to about any of our business activities that
by Dangote Cement in Nigeria grew
invest in our host communities, create they may find disrupting.
from ₦72.4B in 2017 to ₦72.7B in
new job opportunities for local people,
We ensure that a dialogue exists with 2018, representing an increase of 0.4%.
provide scholarships for their children,
all the communities in which we operate.
provide healthcare, housing, education
By so doing, our host communities have Educational empowerment
and access to water where necessary,
access to key decision makers who We understand the critical importance of
support local businesses and contractors
represent Dangote Cement in their high-quality education for the development
and develop local infrastructure.
communities and who are trained and of host communities. This is why we have
Furthermore, we endeavour to operate committed to addressing their grievances. introduced scholarship schemes to help
with minimal possible harmful impact on students in our host communities achieve
If the issues cannot be resolved at the
our local communities, taking care to their educational and career aspirations.
local level, they can be escalated to the
respect their land and property, their More than 950 students were offered
Company's headquarters for a prompt
animals, the air that they breathe, their scholarships to study at different levels
and mutually acceptable resolution.
dignity, their cultural and religious beliefs of education in 2018. In our Ibese
and their way of life. communities, for example, the advent
Impact on host community
of the scholarship programme has
employment
Community engagement reportedly increased the rate of
As part of our community empowerment
We have a Community Engagement children’s enrolment in schools.
drive, our goal is to try to ensure that up
Policy that prioritises the establishment
to 80% of our workforce are from local
and nurturing of a mutually beneficial
communities. At the end of 2018 we
relationship with host communities.
employed 18,312 people directly, with
a further 7,969 third-party contractors
working for our Company.

Strategic report
Community continued
Community infrastructure This is why our social impact projects are Women’s empowerment
development deliberately targeted at meeting the most In November 2018, Dangote Cement
We understand that governments alone pressing needs of the different host Senegal began a fruit and vegetable
cannot meet the needs of our local communities around our plants, in line processing training programme
communities. As a major stakeholder in with the outcome of our community specifically for women. The capacity
these communities, we remain committed engagement programmes. building initiative will help agrarian
to supporting the development of social women from the Pout community to
Some of our flagship projects include:
amenities. In 2018, we invested ₦1.4B develop new skills in how to preserve
the Dangote Skills Development Centre,
of social investment for the construction their fruit and vegetable products.
Lokoja; Cottage Hospital, Mbayion,
of roads, schools, hospitals and several The programme will teach the women
Gboko; and the Ibese scholarship scheme.
other public utilities in the effort to close best practices in the preservation and
In Ethiopia seven classroom blocks were
some of the infrastructural gaps. processing of these farm products,
built during 2018. Furthermore, our
thereby enhancing their trade, income
operations in Obajana, Ethiopia and
Partnership for development and purchasing power.
Dangote Cement South Africa all
As a leading African brand, we are partners contributed to the construction of training
of governments and local communities in centres to offer skills development
the effort to build prosperous economies programmes for their host communities.
in our countries of operation.
Ethiopia
We have continued to engage with local communities,

as well as local authorities in Mugher and the regional
authorities of Oromia, in an effort to create trust and build
mutual respect so that we can maintain our “social licence
to operate”. Without it, our business success in Ethiopia
will be diminished, affecting the performance of one of
our most successful plants.
We are continuously reviewing our stakeholder engagement
and social investment projects’ implementation processes
to ensure effective and efficient project execution, at the
same time improving communication processes with both
In 2018, Dangote Cement provided a new classroom for the Ula-gora
Elementary School. our internal and external stakeholders.
In addition, we will review and if necessary change our
It is fair to say Dangote Cement has experienced a difficult employment practices to offer the local community greater
relationship with its host communities in Ethiopia, a country opportunities for employment and engagement with us.
with a complex and sensitive sociopolitical and The plant has continued to invest in community development
cultural landscape. programmes and carried out projects such as construction
In July, three of our colleagues, including country CEO of seven classroom blocks, two training centres and one
Deep Kamra, were murdered on the road to Addis Ababa, water system to supply Mugher town’s 33,000 people.
for motives that even now remain unclear. We have continued to offer employment opportunities to
our host communities with 1,600 people being employed
In addition, our local operating environment has been currently. We have made positive socioeconomic
made difficult by demands from the local community, with development contribution to our host communities and
respect to employment and business opportunities, that have supported 15 micro-enterprises that employ more
we were unable to meet. than 600 people.
As our relations have improved, so has the performance
of our plant.

01 02 03 04
Standardised Community We recognise that stakeholder Support for entrepreneurship

Engagement Plan engagement is a business tool and as We are committed to helping young
Community engagement is integral to such will require the commitment of all businesses and entrepreneurs to
our social performance management. plant personnel. Different departmental grow and achieve their full potential.
In 2018, we established a formal heads participated in the process of In addition to the multiplier effect that
stakeholder engagement process to developing the Nigerian plan. our value chain activities have on the
ensure consistency across the Group. real sectors of all the economies where
The aim is to have all our operations across
we operate, we have also engaged
In Nigeria, we are developing a Community Africa develop a formal, standardised
directly in the empowerment of
Engagement Plan that is consistent with Stakeholder/Community Engagement Plan
start-ups and innovative business
global best practices and in alignment that is consistent with global standards.
ideas. We prioritise patronage of local
with communities’ needs. businesses in the effort to boost their
productivity, earnings and profitability.
Senegal Nigeria South Africa

Our 1.5Mta plant is located near Pout In Nigeria, we have three plants at Our operations in South Africa are
in Senegal. Opened in December 2014, Obajana, Ibese and Gboko, with total spread between our Aganang and
it employs more than 600 people from combined production capacity of Delmas facilities, which between them
the local community. The plant produced 29.3Mta. Our Nigerian operations can produce 2.8 million tonnes of
more than 1.4 million tonnes of cement commenced at Gboko in 2007 and cement a year for sale in key markets
in 2018, approximately 91% of its rapidly grew to enable the country to around the capital.
operating capacity. become self-sufficient in cement.
As part of its social investment In 2018, Dangote Cement invested In 2018, Dangote Cement South
programmes, our plant in Senegal approximately ₦1.4B in social Africa carried out a number of local
has carried out a number of projects for the benefit of local community initiatives including:
projects that have benefited communities. These investments
• scholarships awarded to 15 university
1,200 households, including: covered healthcare, education and
students to pursue engineering and
infrastructure developments,
• construction of the Solidarity Bridge other graduate courses;
amongst others, including:
of Keur Moussa, which has benefited
• leadership training to empower
eleven villages cut off from the nearby • at Gboko, scholarship grants totalling
local community leaders in the
town by flooding; ₦10 million were awarded to 493
Springbokpan and Verdwaal
people in the Mbayion community;
• rehabilitation of roads in Ngomene; communities, with a focus on mining
• at Ibese, a block of classrooms legislation, codes of conduct and
• construction of a college in Niakhip;
was constructed in Aga-Olowo general transformation; and
• construction of a maternity hospital for 80 students and we provided
• youth training in driving (50 students),
in Pout; scholarships to benefit 400 local
computer skills (25 students) and
students; and
• construction of classrooms, a basic electrical and mechanical
teacher’s house and toilets for • at Obajana, 249 students benefited engineering skills (15 students).
a school in Dias; and from a ₦25 million scholarship grant,
among other social investments.
• rehabilitation of a primary school
and construction of a health centre
in Mont Rolland.

Strategic report
People
People are the drivers

of our business success
We believe in the importance of embedding our identity and
values in our workplace. A strong and decent corporate culture
will ensure that Dangote Cement achieves a sustainable and
successful future for the benefit of all our stakeholders.
Dangote Cement Annual General Meeting, 2018

01 02 03 04
Q Q
Dangote Cement has one of the How would you describe the
most diversified workforces in relationship between human
Africa. How do you manage this resources and sustainability?
diversity effectively? A
A There is a close-knit relationship
We operate in ten countries, from between the two because a
Senegal on the west coast of Africa, to sustainable business can only be
Dr Musa Rabiu Ethiopia in the east, and down to South created by people who understand
Group Chief Human Resources Officer Africa, so our operations span a large why sustainability is important.
geographic area and many different local Whether or not our sustainability
populations and ethnicities. Even within goals and objectives are achieved will
Q
countries, such as our home country be determined by the level of buy-in
What has been the approach
Nigeria, there is significant ethnic diversity and commitment at all levels, as well
to internal stakeholder
in different regions of the country. So as as the quality of the people making
management adopted by
an employer, we need to be mindful of the decisions and executing the
Dangote Cement, and how
differing cultures, tribal associations, strategy to achieve it.
effective has this approach been?
religions and local customs.
A The 7 Sustainability Pillars of
Our people are our biggest assets. We believe that all our staff should have The Dangote Way provide a
Around them revolves everything an equal platform to excel. We abhor all framework for building a strong
that makes us who we are and all forms of discrimination based on gender, institution, achieving operational
that we wish to be as a global race, religion, ethnicity, marital status sustainability, developing a sustainable
institution. We are therefore and so on. This is clearly stipulated in business culture and achieving social
committed to ensuring that they our human resources and employee responsibility in our internal and
continue to perceive the Dangote policies and we ensure strict compliance external relations, but the success
Cement brand as the best place to with our non-discrimination standards. of all of these will depend on how
work and thrive. To achieve this well our people are aware of, involved
objective, we ensure that we keep in and devoted to our corporate
them continuously informed and goals and values.
seek their opinion on issues that
impact them. We run a structure
that allows a level playing ground
for all employees and gives them the
freedom to hear and be heard.

Strategic report
Dangote Academy
Training for success
The Dangote Academy was launched in 2010

to equip colleagues with the diverse technical
and management skills that are essential for
the continuing prosperity of our business.
The Dangote Academy

Since 2010, the Academy has been
Training courses were held at eleven
providing training in both technical
locations in Nigeria, with many staff
and management skills for employees
from Pan-African facilities visiting
of the Dangote Group of companies.
Nigeria for training in engineering
Specifically, the Academy was
skills at our flagship campus at
established to:
Obajana in Kogi State.
• be the umbrella organisation for It was created in recognition of the fact
that we cannot rely on Africa’s universities With eight classrooms, five workshops,
all talent development and learning
and colleges to provide the very a 450-seat lecture theatre and leisure
initiatives in the Dangote Group;
specialised technical and managerial facilities, the Obajana campus can
• provide facility and platform training required to run major cement accommodate 400 people.
for technical skills acquisition plants such as ours.
benchmarked to world-class
standards; In 2018, the Academy offered 114 8,160
different training courses on a wide Hours of training offered
• attract and develop high-quality range of technical, administrative and
114
talent from secondary and tertiary marketing skills, from “7 Habits of Highly
institutions through a structured Effective People” to “Smarter Selling”.
process; and Different training courses
Approximately 11,707 staff attended
• align our skills development to the these courses, with around 5,500 being
rapid changes in technologies by trained by the Dangote Academy itself
building long-term relationships and the rest being trained by 26 external
with OEMs and institutions training providers.
of learning.

01 02 03 04
Training engineers Graduate Drivers Academy

Dangote Cement needs competent For most people outside of our locations
engineers. To that end, we have of operation, Dangote Cement’s drivers
established three training schemes, the are perhaps the most highly visible
Graduate Engineers Training Scheme part of our workforce. As such, we
(GETS), the Vocational Training Scheme believe they must be seen as good
(VTS) and the Junior Technician Scheme ambassadors for our Company,
(JTS). Between them, they provide a conveying its values properly as
wide range of skills necessary for the they go about their daily deliveries.
operation and maintenance of our
Our Graduate Drivers Academy is
cement factories across Africa.
designed to improve the quality of
Of these, GETS offers the most transport fleet drivers by teaching them
advanced training, preparing graduate safe and defensive driving techniques,
engineering students with all the highway management standards and
necessary technical and supervisory HSSE awareness, thereby helping to
skills they need to become team reduce accident rates and improve
leaders within Dangote Cement. drivers’ attitudes and aptitudes when
managing the delivery of Dangote
GETS operates in four phases, covering
Cement products to our customers.
engineering theory, workshop skills,
information technology and
management skills.
In 2018, nearly 50 students graduated
from GETS, with more than 100
graduating from JTS. Many will be
deployed at Dangote Cement, with
others finding work at other Dangote
Group companies, such as Dangote
Flour Mills and Dangote Sugar Refinery.

Strategic report
Environmental
Caring for our

environment
and addressing
the challenges
of climate change
KPIs
Carbon emissions CO2 kg per tonne Water consumption
16.4 million tonnes 687kg 6.3 million tonnes
Total carbon emissions were We achieved a 2% reduction in Including all uses, we consumed more
16.4 million tonnes in 2018. CO2 per tonne, through greater than 6.2 million tonnes of water across
operational efficiency. our operations in 2018.

01 02 03 04
Dangote Cement believes that sustainable

environmental management, together with a
proactive approach to addressing the challenges
and opportunities of climate change, is fundamental
to maintaining a successful business.
We are committed to improving our standards
of environmental performance.
We recognise we must make a greater effort
to protect the environment, particularly at and
around our sites of operation.
We aim to apply economically sound sustainable
development principles to our business and seek
to maximise energy efficiency and minimise the
environmental impact of our operations.
“We are studying ways to use more

waste materials such packaging in
our kilns so we can reduce our fossil
fuel burden.”
Ramprasad Guggilam
Senior General Manager

Strategic report
Environmental
The cement industry is a significant user of fossil fuels and

a major contributor to global carbon emissions. But modern
cement plants are not just more energy efficient, they also cost
less to run and are more environmentally friendly. A greener
plant is a more profitable plant.
“Our environmental Q In November 2018, Dangote Cement

What are the biggest challenges became a founder member of the
efforts are guided facing the cement industry in Global Cement and Concrete
by the GCCA cutting carbon emissions? Association, which adopted a
Sustainability Charter A Sustainability Charter based upon
“Five Pillars”. In fact, the GCCA has
to reduce our impact Even if you look at today’s production
taken over and expanded upon what
of cement it is clear that the cement
on climate change.” industry’s emissions are too high and
was previously the Cement Sustainability
Initiative of the World Business Council
Massimo Bettanin need to be cut if we are to meet the
for Sustainable Development.
Group Chief, HSSE targets of the Paris Agreement.
As you can see on the page opposite,
The biggest challenge is to reduce the
the new charter’s Five Pillars are very
total burden of emissions at the same
much aligned with our own
time as we increase production of
7 Sustainability Pillars. As a member
cement, which is difficult because
of the GCCA we are committed to
demand for cement is rising, and
adopting this Charter and publishing
needs to rise if large populations
the results of our efforts in each of its
are to have decent housing
five pillars, possibly as early as the
and infrastructure.
2019 Annual Report.
We cannot change the chemistry of
the reaction, which is a large source Q
of CO2 in the process, but we can do Are the world’s investors
our best to reduce our use of fossil demanding a more sustainable
Q fuels and all the other impacts. approach to business?
What is the environmental impact A
of cement production? Q Yes, I get regular feedback from our
A What initiatives can the industry management team that investors
The worldwide cement industry is take to reduce emissions? are increasingly asking about our
estimated to be responsible for perhaps A sustainability efforts and our carbon
5% to 7% of global carbon dioxide We can reduce fossil fuel use in several emissions because it is an important
(CO2) emissions, because the chemical ways. We can innovate to produce factor in their investment
and thermal combustion processes cements that are just as strong but decision process.
involved in cement production are a which use less clinker, which is the
As part of our commitment to
significant source of CO2. Since there heat-requiring part of the process.
sustainability we are adopting the
is no viable substitute for cement,
We can increase our use of waste GCCA Sustainability Charter. We are
these emissions are an inevitable
materials as an alternative to using also moving towards GRI-certified
consequence of global development.
coal and we can look at providing reporting standards and we will begin
In addition, we mine the Earth for more electrical energy from renewable to provide CO2 emissions data to the
raw materials such as limestone and sources such as solar and wind, Carbon Disclosure Project, which
gypsum, use fossil fuels to produce which are underdeveloped in Africa, collates it on behalf of many investors
electricity and operate large fleets but which have good potential to cut around the world.
of vehicles on the roads. fossil fuel use.

01 02 03 04
Dangote Cement believes that sound efficiency in all our production processes finished cement, while the remaining 40%
environmental management, together and reduce, as much as is feasible, our of CO2 is generated by the combustion
with a strategic proactive approach to CO2 emissions, our water footprint and of fossil fuels in the kiln and to produce
addressing the challenges and opportunities our dust emissions. electricity to power the plant. In addition,
of climate change and water scarcity, is we must factor in the carbon emissions
This year, we started exploring the
fundamental to maintaining a successful of our inbound and outbound delivery
feasibility of using alternative fuels in our
and resilient business. fleets, and even those of our suppliers.
kilns through effective and fit-for-purpose
As the largest cement company in reutilisation of waste produced by our Our factories are modern, with most of
Africa, we are committed to complying sites, such as old tyres and packaging. our lines having opened in the last seven
with all relevant environmental regulations years. They have been designed to be
This is a further step towards reducing the
in the countries where we operate, intrinsically efficient through the adoption
use of fossil fuels in order to minimise
maintaining good standards of practice of cutting edge technology in cement
emissions of greenhouse gases and
on environmental management. We try production such as:
other pollutants from our cement
to apply economically sustainable
operations. • pre-heater and pre-calciner
development principles to our business,
technologies, which are regarded
while minimising the environmental
impact of our operations on our host Understanding and managing as the most efficient technology
our carbon footprint because they recycle heat from the
communities and the wider landscape.
The yearly global demand for cement kilns to pre-heat the raw mixture
In 2018, we decided to consolidate our increases at an average of 5–6%, with and achieve much of the chemical
knowledge and understanding of key most of the additional demand coming transformation of limestone before
environmental indicators including energy from emerging markets such as Africa it even enters the kiln;
consumption, water usage, greenhouse due to greater urbanisation, economic • vertical rolling mills for raw material,
gas emissions and dust emissions, in and demographic growth. coal and cement grinding which are
order to achieve better-informed decisions
The global cement industry is a major 40–50% more efficient than traditional
on environmental matters that are relevant
producer of global carbon dioxide ball mills;
for our business and our stakeholders.
emissions. • mechanical material transport and
In line with our commitment to
Approximately 60% of these emissions transfer systems equipped only with
continuously improve our environmental
are produced in the conversion of limestone conveyors and bucket elevators,
performance, we have developed and
(CaCO3), a key natural ingredient, to clinker which are up to 80% more efficient
implemented practices and technologies
(CaO), an intermediate component of than the traditional pneumatic systems;
aimed at upholding excellent energy
The Five Pillars of Global Cement and Concrete Association’s Sustainability Charter
Link to the 7 Sustainability Pillars of The Dangote Way
Health and Safety Climate change Social Responsibility Environment Circular economy
and energy and nature
• Apply the good • Develop a climate • Publish a Code of • Apply Environment • Promote the
safety practice change mitigation Conduct incorporating and Nature guidelines principles of a
guidelines strategy, and publish the principles • Set emission targets circular economy
of the GCCA targets and progress of internationally and report publicly across the
• Promote the proclaimed on progress value chain
sharing of good human rights • Apply the guidelines
health practice • Apply Social Impact developed for fuel
Assessment guidelines and raw material
• Establish a use in cement
systematic dialogue • Production
process with
stakeholders
Economic Operational Social Environmental Financial Institutional Culture

Strategic report
Environmental continued
Understanding and managing as fly ash, to clinker, increase the use Consequently, although our operations
our carbon footprint continued of electricity produced by renewable do not require large quantities of water
• major process fans provided with sources, such as wind and solar, in comparison with other sectors, we
variable frequency drives (VFD) to particularly abundant, and still are committed to reducing the amount
vary the ventilation rate based on the underdeveloped, in Africa. of fresh water utilised by our operations
actual demand/operating conditions, to ensure more availability to the local
In 2018, our total greenhouse gas
which can reduce the input power communities. This is especially important
emissions resulting from captive power
by 40–80% (depending on the % in those regions where we operate that
plants and generators, and kilns and
flow rate) compared to more are characterised by endemic scarcity of
vehicles used at the quarries and sites
traditional dampers. potable water.
(Scope 1), as well as those associated
These measures have resulted in with the use of purchased electricity Most of our cement plants have been
operational cost savings, to the benefit (Scope 2), were 16.4 million tonnes, designed to recover, store and recycle
of margins, and at the same time equivalent to a specific or average groundwater resulting from quarry
produce fewer CO2 emissions than unit-based emission of 687kg CO2 per operations and/or the stormwater run-off
less modern plants for the same tonne of cementitious material produced. decanting from the plant, thus reducing
amount of cement. the consumption of freshwater and
Implementing efficient mitigate the potential impact on local
This year we have consolidated the communities and farming.
water management
greenhouse gas emission monitoring
We recognise that scarcity of drinkable In 2018, our total water consumption
and reporting system in order to verify
water is a significant global issue and from activities including production
the actual carbon footprint of all our
central to any sustainability initiative. processes, cooling, dust suppression,
operations and identify potential areas
for further improvement. We are aware that of all water on gardening, domestic and sanitary use
Earth, just 2.5% is fresh water and was 6.2 million tonnes.
However, as an increasingly
barely about 1% of that is usable by Across the Group’s activities, this
environmentally conscious organisation,
humanity, since the majority is locked represents an average use of nearly
we are aware that we cannot just rely
up in ice or deep underground. 270 litres of water per tonne of
on the good design of our plants and
we will need to explore innovative ways Rivers and lakes hold only a small fraction, cementitious product sold.
to continuously reduce our carbon but it is this water upon which the world’s Controlling our dust emissions
footprint along the whole value chain. population, farming and industry depend. Cement manufacturing processes
Possible options to reduce our greenhouse Africa is no exception and the continent’s generate dust emissions that, if not
gas emissions may include the use of fast-growing population and increasing properly managed, can have significant
alternative fuels, such as waste, in our urbanisation are accompanied by a impacts on both our workforce and
kilns, utilisation of more additives, such significant rise in water demand. our neighbours.
CO2 emissions at integrated plants 2018 (tonnes)

Obajana
Ibese
Ethiopia
Senegal
South Africa
Zambia
Tanzania
Gboko
Congo
0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000
62 DangoteCement
Dangote CementPlc
PlcAnnual
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2018
01 02 03 04
At Dangote Cement, we understand Measures adopted in this regard include: The good design of our plants, combined
the importance of reducing dust with good control and maintenance
• the storage of our raw materials in
emissions as much as is technically practices we have adopted, has allowed
warehouses and/or silos (stockpiling
and economically feasible. our plants to maintain the average dust
of dusty materials in open areas is
emissions at the stacks in a range
To achieve this, all our plants have avoided and undertaken only in
between 20 and 30 mg/Nm3.
been designed and provided with case of abnormal or emergency
state-of-the-art dust control equipment operating conditions); This is well below the typical regulatory
including bag house filters and threshold limits and the international
• handling of raw materials and
electrostatic precipitators. best standards (50 mg/Nm3).
intermediate and final products by
In addition to the control measures means of conveyors completely
adopted for the stack emissions, we closed and provided with bag house
have developed and implemented filters at the transfer points; and
specific programmes to mitigate the
• continuous dust suppression activities Massimo Bettanin
potential impact resulting from fugitive
by water spray and use of binding Group Chief, HSSE
emissions of dust.
material on internal roads both at the 25th February 2019
plants and quarries.
Water preservation in South Africa

Both industries, which have a major impact on the region’s
economy, are largely dependent on the area’s available
groundwater resources.
The Aganang plant has been designed in such a way so
as to drain all storm water falling in the process areas into
concrete-lined canals and pathways leading to a single
discharge point, where the wastewater is further directed
into two return water dams.
The plant has three authorised dams: a borrow pit of
275,000m3 and two return water dams, each with storage
capacity of 45,000m3.
The borrow pit, which is situated in the mining area,
collects almost 190,000m3 per annum of water that is
Although the cement industry is not a large user of water,
being used for dust suppression. About 122,500m3
we recognise the need to reduce the amount we use,
volume of water from the return water dams is recycled
conserve local supplies of water and ensure that we do
and reused as process water, reducing our need for
not pollute local land or rivers.
boreholes. This means that we take far less groundwater,
In South Africa, Dangote Cement is committed to reducing which can instead be used by local communities for
its water impact for the benefit of its local community. Our agricultural activities.
Aganang facility, situated approximately 40km west of the
This is part of Dangote Cement’s commitment to reduce
town of Lichtenburg in the North West Province, sits in an
the water footprint of its operations.
area well known for both its agriculture and its cement.
Annual
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2018 DangoteCement
Dangote Cement Plc
Plc 63
Strategic report
Financial
Delivering strong
and sustainable
returns for our
shareholders
KPIs
Revenue up 11.9% EBITDA up 12.1% Dividend per share up 52.4%
₦901.2B ₦435.3B ₦16.00
2018 ₦901.2B 2018 ₦435.3B 2018 ₦16.00
2017 ₦805.6B 2017 ₦388.1B 2017 ₦10.50
2016 ₦615.1B 2016 ₦257.2B 2016 ₦8.50
Revenue growth was driven by higher EBITDA rose with increased revenues The Board has proposed a dividend
cement sales volumes in Nigeria and higher efficiency of ₦16.0 per 50 kobo share, up 52.4%
and better pricing across our key on the dividend for 2017.
Pan-African operations.

01 02 03 04
As the largest public company in Nigeria and one

of only seven companies with a Premium Listing on
the Nigerian Stock Exchange, we are committed to
setting a strong example by applying International
Financial Reporting Standards and ensuring our
adherence to best practices in prudent financial
management through structures and policies that
consistently comply with all relevant laws and
regulations in the countries in which we operate.
By maintaining our profitable financial growth, which
in turn creates direct and indirect contributions to
the economic development of our host countries,
we can quantify our financial impact as our gross
value added and our return on equity, both of
which increased in 2018.
Operating cash flow Return on capital invested

₦375.3B 27.1%
Dangote Cement generated ₦375.3B cash from In 2018, Dangote Cement’s ROCE was 27.1%
operations in 2018 (2017: 26.8%)
“The strong financial performance we

achieved in 2018 has enabled us to pay
a good dividend and invest in our future.”
Dickson Boko
SAP Functional Support Consultant

Strategic report
Financial review
A record
financial
performance
Brian Egan
Group Chief Financial Officer
Financial highlights
31st December 31st December
2018 2017
Year ended ’000 tonnes ’000 tonnes
Volume of cement sales

Nigeria 14,178 12,724
Pan-Africa 9,370 9,365
Inter-company sales (13) (174)
Total cement sold 23,535 21,915

2018 2017
Year ended ₦’million ₦’million
Revenue by region
Nigeria 618,301 552,364
Pan-Africa 283,262 258,444
Inter-company sales (350) (5,226)
Total revenue 901,213 805,582

Year ended 2018 2017
EBITDA 435,261 388,147

EBITDA margin 48.3% 48.2%
Operating profit 338,698 304,208
Operating margin 37.6% 37.8%
Profit before tax 300,806 289,590
Earnings per ordinary share (Naira) 22.83 11.65
Dividend per share (Naira) 16.00 10.50
Total assets 1,694,463 1,665,883

01 02 03 04
Group revenue increased by 11.9%, from ₦805.6 billion to Administration and selling costs
₦901.2 billion, driven by increased volumes in Nigeria and a 9.5% 31st December 31st December
increase in revenues per tonne in Pan-African operations. 2018 2017
Year ended ₦’million ₦’million
Cement volumes sold by Nigerian operations increased by Administration and selling costs 189,426 155,297
11.4%, with revenue from our Nigerian operations increasing
by 11.9% from to ₦552.4 billion to ₦618.3 billion. Total administration and selling costs rose by 22.0% to
Sales to domestic customers in Nigeria increased by ₦189.4 billion, mostly as a result of higher sales and associated
11.7% from 12.0Mt to 13.4Mt, with the remaining 0.76Mt distribution costs in Nigeria, which also include increased
being exported. export sales from Nigeria whose delivery costs are higher.
Haulage expenses in Nigeria increased by ₦10.2 billion to
Full year Pan-African volumes remained broadly constant at ₦56.7 billion from ₦46.5 billion. Haulage costs in Pan-Africa
nearly 9.4Mt, with lower volumes in Ethiopia, Ghana and increased by ₦3.2 billion, representing an 11.3% increase.
Tanzania being offset by increases in Zambia and Senegal.
The depreciation also contributed to the overall increase in
The increase in revenue per tonne in Pan-Africa was mainly Pan-African operating costs when these were converted to
the result of depreciation of the Naira, driving higher Naira Naira. The average exchange rate and year-end exchange rate
values when revenue was converted into Naira, as well as for the main currencies applied are as shown in the notes to
price adjustments in some countries. the financial statements.
Pan-African revenue constituted 31.4% of total Group revenue
(2017: ₦258.4 billion, 31.9%). Profitability
2018 2017
Manufacturing and operating costs Year ended ₦’million ₦’million
31st December
2018
31st December
2017
EBITDA 435,261 388,147
Year ended ₦’million ₦’million Depreciation and amortisation (96,563) (83,939)
Materials consumed 122,581 111,559 Operating profit 338,698 304,208
Fuel and power consumed 133,528 111,569
Royalties paid 1,134 1,136
EBITDA by region
Salaries and related staff costs 31,557 26,713
Depreciation and amortisation 64,544 59,598 2018 2017
₦’million ₦’million
Plant maintenance costs 29,562 26,848
Other production expenses 9,199 14,653 Nigeria 397,377 360,759
Increase in finished goods and Pan-Africa 49,062 38,276
work in progress (8,794) (786) Central costs and inter-company (11,178) (10,888)
Total manufacturing costs 383,311 351,290 Total EBITDA 435,261 388,147
Group manufacturing costs increased by 9.1%, mostly as Group earnings before interest, tax, depreciation and
a result of increased volumes in Nigeria. Manufacturing amortisation (EBITDA) increased by 12.1% to ₦435.3 billion,
costs in Nigeria increased by 7.4% from ₦158.6 billion to at a margin of 48.3% (2017: ₦388.1 billion, 48.2%) as a result
₦170.3 billion, on the back of the 11.4% increase in sales of the increased volumes in Nigeria and better prices per
volume for 2018. tonne achieved by Pan-African operations.
Although Pan-African volumes remained constant, manufacturing Excluding eliminations and central costs, EBITDA increased
costs increased by 10.6% from ₦192.7 billion to ₦213.0 billion, by 10.2% in Nigeria, to ₦397.4 billion at a margin of 64.3%
mainly due to exchange rate impacts as well as input (2017: ₦360.8 billion, 65.3%).
price adjustments. Despite level volumes, Pan-African EBITDA rose by 28.2%
The Nigerian Naira traded at ₦359/$1 at the end of 2018 to ₦49.1 billion, at 17.3% margin (2017: 14.8%), driven by
compared to ₦331/$1 at the end of 2017, a decline of 7.8%. better pricing that helped to offset losses in Tanzania, Congo
and Ghana.
Operating profit of ₦338.7 billion was 11.3% higher than the
₦304.2 billion in 2017, at a margin of 37.6% (2017: 37.8%)
driven by higher profitability in Nigeria.

Strategic report
Financial review continued
Interest income/expense and similar charges Financial position

31st December 31st December 31st December 31st December
2018 2017 2018 2017
₦’million ₦’million As at ₦’million ₦’million
Interest income 11,323 9,136 Property, plant and equipment 1,171,864 1,192,140
Net exchange gain — 26,790 Other non-current assets 87,79 2 57,089
Finance income 11,323 35,926 Intangible assets 5,969 6,355
Exchange loss (8,112) — Total non-current assets 1,265,625 1,255,584
Interest expense (41,666) (52,711) Current assets 261,942 241,912
Net finance income/(expense) (38,455) (16,785) Cash and bank balances 166,896 168,387
Total assets 1,694,463 1,665,883
Interest income increased by 23.9%, mainly as a result of higher
average cash balances and improved interest rates in Nigeria Non-current liabilities 86,619 121,153
and Ethiopia. Current liabilities 285,930 391,276
Debt 335,301 372,094
During the year to December 2018, the Nigerian Naira was
devalued from about ₦331/$1 to ₦359/$1. The devaluation Total liabilities 707,850 884,523
resulted in net exchange gains from inter-Group assets and
liabilities that do not eliminate in full on consolidation in the Non-current assets increased from ₦1,255.6 billion at the end
Nigerian operations. In 2018, this exchange gain was outweighed of 2017 to ₦1,265.6 billion at 31st December 2018. This was
mainly by the exchange losses from Pan-African operations mainly the result of the increase in deferred tax assets
that use the CFA, as well as in Sierra Leone and Ghana, following the approval of Pioneer tax exemption as well as
resulting in a net exchange loss in 2018 compared to a net payments for fixed assets under construction. This was
exchange gain in 2017. partially offset the depreciation charge for the year of ₦95.6
billion.
The effective interest rate on borrowings was 11.14%.
Additions to property, plant and equipment were ₦88.6 billion,
Taxation of which ₦61.6 billion was spent in Nigeria and ₦27.0 billion
in Pan-African operations.
2018 2017
₦’million ₦’million As detailed in the tax section above, a provision of
Tax credit/(charge) 89,519 (85,342) ₦133.7 billion was reversed, resulting in the decrease
in both current and non-current liabilities.
In prior years, we made a tax provision on profits earned from
Ibese production lines 3 & 4 and Obajana production line 4
on the basis that they were yet to obtain approval for tax
exemptions under the Pioneer Status Incentive. Approval
from the NIPC was obtained in 2018 and the provision of
₦133.7 billion was reversed resulting in the tax credit of
₦89.5 billion.
The underlying effective tax rate for Nigerian operations
excluding the one-off adjustment was 12.07%.
The Group’s profit for the year was up 91.1% to ₦390.3 billion
(2017: ₦204.2 billion). As a result, earnings per share increased
by 95.9% to ₦22.83 (2017: ₦11.65).

01 02 03 04
Movement in net debt

Cash Debt Net debt
Year ended ₦’million ₦’million ₦’million
As at 1st January 2018 168,387 (372,094) (203,707)

Cash from operations before working capital changes 424,416 — 424,416
Change in working capital (41,412) — (41,412)
Income tax paid (11,163) — (11,163)
Additions to fixed assets (88,623) — (88,623)
Change in non-current prepayments and payables (42,422) — (42,422)
Other investing activities (796) — (796)
Net interest (35,808) — (35,808)
Net loans obtained (repaid) (31,109) 31,109 —
Dividend paid (178,925) — (178,925)
Other cash and non-cash movements (net) 4,351 5,684 10,035
As at 31st December 2018 166,896 (335,301) (168,405)
Cash of ₦424.4 billion, generated from operations before changes Capital expenditure was mainly comprised of the construction
in working capital, was 11.8% ahead of the ₦379.7 billion of new Nigerian and Pan-African plants, as well as improvements
generated in 2017. After net investment of ₦41.4 billion on in our energy efficiency in Tanzania.
working capital and tax payments of ₦11.2 billion, the net
cash flow from operations was ₦375.3 billion. Recommended dividend
On 25th February 2019, the Directors recommended an
Financing outflows (excluding overdrafts) of ₦257.1 billion
increased dividend of ₦16.00 per share (2017: ₦10.50)
(2017: ₦190.6 billion) were reflected in net loans repaid of
for approval at the Annual General Meeting scheduled for
₦32.3 billion, interest paid of ₦45.8 billion and a dividend
17th June 2019. The proposed dividend is 52.4% higher
payment of ₦178.9 billion.
than for the 2017 financial year and will result in a total
Cash and cash equivalents (net of bank overdrafts used for dividend payment of ₦272.6 billion (2017: ₦178.9 billion).
cash management) decreased slightly from ₦161.8 billion
at the end of 2017 to ₦159.0 billion at 31st December 2018. Going concern
With net loans repaid at ₦32.3 billion, net debt decreased The Directors continue to apply the going concern principle
by ₦35.3 billion from ₦203.7 billion at the end of 2017 to in the preparation of the financial statements.
₦168.4 billion at the end of 2018, giving a net debt to EBITDA
ratio of 0.39x, reflecting the continuing strong cash generation After considering the liquidity position and the availability
achieved by the Group and improving its already healthy of resources, the Directors concluded that there are no
balance sheet position. significant threats to the Group’s going concern capabilities.
The Directors believe that the current working capital is sufficient
Capital expenditure by region for the operations and the Group generates sufficient cash
Nigeria Pan-Africa Total flows to fund its operations.
₦million ₦million ₦million
Borrowings are mainly to fund the expansion projects.
Nigeria 61,615 — 61,615
Senegal — 794 794
Cameroon — 1,043 1,043
Congo — 136 136
Ghana — 481 481 Brian Egan
Côte d’Ivoire — 9,416 9,416 Group Chief Financial Officer
Sierra Leone — 890 890 25th February 2019
South Africa — 297 297
Ethiopia — 1,327 1,327
Tanzania — 10,586 10,586
Zambia — 671 671
Other — 1,367 1,367
Total 61,615 27,008 88,623

Strategic report
Institutional
Building a
world‑class
institution based
upon governance
and transparency
KPIs
Independent Directors Board diversity Board policies
6 2 22
2018 2018 2018
At the end of 2018, Dangote Cement With just two female directors, Dangote Cement’s Board of Directors
had six independent directors, out Dangote Cement is committed to is governed by 22 separate Board
of a total of 16 Board members. increasing the diversity of its Board. Policies, which are detailed on
pages 202 and 203.

01 02 03 04
Effective corporate governance is the force that

drives our ambition to build a successful and
sustainable company. Balancing the needs of our
internal and external stakeholders, it establishes
our corporate values and provides guidance on
the way we do business, driving high levels of
performance and encouraging trust that we mean
what we say. By promoting a culture of performance
and transparency that can truly be described as
“world class”, we aim to encourage investment
that we can deploy to the benefits of all our
stakeholders and the economies and societies
in which we operate.
Institutional Investor SON Awards

Institutional Investor
Emerging EMEA
Executive Team
Five top-three rankings MANCAP certification
“The success of any organisation depends

on the ability of its Board of Directors
to set a good example and demonstrate
a clear commitment to doing things right
and doing the right things.”
Cherie Blair CBE, QC
Independent Non-Executive Director

Strategic report
Balancing risk and

reward for success
Q&A with Dr Adenike Fajemirokun
Q Q
How does risk management How does risk management
help to create value? guide business strategy at a
A high level?
It is a natural and desirable A
entrepreneurial instinct to take If you look at Dangote Cement
risks in order to create wealth. The we have a high degree of business
purpose of risk management is to integration and that is driven by the Pan-African margins by the lack of
temper this instinct with pragmatic realities of doing business in Africa, power capacity in Tanzania, but are
thinking and analysis, so that all where certain risks and challenges now building our own power station
potential risks can be identified, exist. For example, fuel supplies so we are self-sufficient.
assessed and, where possible, can be disrupted, as happened with
mitigated or avoided completely. our gas supplies some years back, Another good example is our delivery
We cannot eliminate all the risks and this drove us to adopt a coal fleet. We buy lots of trucks for cement
we face, but we can certainly mining strategy in Nigeria. In fact, delivery because in many countries
prepare for them. If we failed to do our use of own-mined coal not only there is no reliable third-party logistics
that, we would not only squander improved our fuel security but also capability, so having our own fleet helps
opportunities for growth, but risk helped us to reduce our foreign us reach our customers more effectively.
incurring losses and the destruction exchange risk. All of the initiatives above can be seen
of shareholder value.
In Nigeria and elsewhere there as good risk management initiatives,
Q is little or no grid power, so we but in fact they are also sources of
What are the biggest risks mitigate this risk by building our competitive advantage in many of
facing Dangote Cement? own power stations. We have seen our markets.
the problems this created for our
A Q
The biggest risks we face are the What is the outlook for risk
large-scale macroeconomic and management at Dangote Cement?
social risks over which we have
no control. We cannot control a
A
The need for effective risk
country’s economic performance,
management is very clearly
its currency or its political and social
understood at the highest level of the
environment, but we can certainly
Company and will continue to be
analyse them and develop our risk
supported accordingly.
management strategies accordingly
to guide our operational strategies
for production, marketing
and distribution.

01 02 03 04
Risk management
The risk management process

We believe the identification and
management of risks are central to
achieving the corporate purpose of
creating long-term shareholder value,
as demonstrated by our fit-for-purpose
approach to risk management. The
principal aim of Dangote Cement’s risk
management governance structure and
internal control systems is to identify,
evaluate and manage risks with a view
to enhancing the value of shareholders’
investments and safeguarding assets.
Our risk management process is
disciplined and methodical to ensure
Dr Adenike Fajemirokun value addition and value protection for
Group Chief Risk Officer the Group. The process ensures the
appropriate ownership of risk and
accountability of all stakeholders in the
risk management value chain whilst
ensuring collaboration between risk
management and process owners
across the business. Measurement
Improving risk
of risk takes into consideration our
risk appetite tolerance limits to avoid
misrepresentation of our risk profile.
management
Risk identification
and assessment
Our approach stresses that good risk
management starts with the right
conversations to drive better business
decisions. Hence, we embed accountability
Good risk management is essential for managing risk into our business
structures. Procedures for identifying
for the creation of a robust institutional risks are applied at department, country
framework that enables us to deliver

and group levels.
Qualitative and quantitative tools
a long-term and sustainable increase deployed to manage this process
effectively across the organisation
in value for our stakeholders. include the conduct of risk and control
self-assessments, key risk indicator
monitoring and loss incident reporting.
These processes are supplemented with
ad-hoc on-site assessments or incident
assessments when unexpected high
risks are envisaged or occur.

Strategic report
Risk management continued
Risk measurement
and prioritisation Risk management process
This requires the quantification of the
consequences of potential risks or
actual risk incidents for the proper Group strategy and business planning
understanding of risk taking or risk
exposure by relevant stakeholders.
Risk appetite tolerance limits
Dangote Cement’s overall risk rating
is based on the severity of impact Risk identification and assessment
or damage from each specific risk,
multiplied by its probability of occurrence. Risk measurement and prioritisation
Risk control and reporting

Risk control and reporting
Following proper identification, Risk monitoring
quantification and treatment of existing
and potential risks, mitigation strategies Group risk management oversight, system and tools
are recommended, implemented,
monitored and reported to the Executive
Committee on a monthly basis and Risk analysis and mitigation
to the Board on a quarterly basis.
Where necessary, special risk reports
are sent to relevant stakeholders
on a need-to-know basis. The Audit,
Compliance and Risk Management Assess and Measure,
Committee reviews risk reports and analyse Identify risk Plan action Implement control and
approves the implementation of monitor
recommended risk control measures.
Risk monitoring
The Group Risk Management department,
headed by the Group Chief Risk Officer,
is responsible for coordinating all the risk and controls, within the criteria set by the Compliance and Risk Management
management processes implemented second line of defence. It continuously Committee and Board-level forums
across the Group and ensures that risk monitors risk positions and reports of Dangote Cement subsidiaries, the
controls are duly implemented. Where inherent risks to relevant stakeholders. main Board of Dangote Cement receives
risk controls remain outstanding, the regular information in respect of the risk
department ensures timely escalation The second line of defence comprises
profile of the Group, and has ultimate
to relevant approving authorities for the risk and compliance employees and
responsibility for risk appetite and
required budgetary approvals or control oversees the first line, setting the limits,
capital plans.
modifications. The risk monitoring rules and constraints, consistent with
process sometimes leads to the the risk appetite of the Group. It ensures
a holistic approach to risk management Risk appetite
identification and assessment of new All decisions must balance risk and reward
risks that are then analysed using the and risk reporting.
to ensure all activities are economically
process flow previously described. The third line of defence comprises profitable after due consideration of
Internal Audit employees, providing risk Dangote Cement’s risk appetite is
Three lines of defence independent assurance to the Board considered at all times when making such
Our risk culture in Dangote Cement and Executive Management. The Legal decisions. Our Board has responsibility
is driven by key principles embedded function does not sit in any of the three for determining the level of risk that will
in our Enterprise Risk Management lines, but supports all three levels of be taken. The Board determines the
Framework. These principles are built defence and plays a role in overseeing overall strategic direction for the
around the “three lines of defence”. legal risk. business and as part of this process
The first line of defence comprises the The Legal function is also subject to determines the Group’s risk appetite.
revenue-generating and customer-facing oversight from the Risk and Compliance Risk appetite defines the level of risk we
areas, alongside all associated support functions with respect to the management are willing to take as a business across
functions. The first line identifies the of operational risks. Together with a the different risk types, whilst considering
risks, and sets the policies, standards governance process through the Audit, varying levels of financial and non-financial

01 02 03 04
Risk management
Risk reporting escalation and treatment

Audit, Compliance and Risk Management Committee
• Approves risk management framework and applicable policies
Dangote • Approves methodologies for management of strategic risk
Cement Board • Approves the Dangote Cement risk management strategy
and risk appetite
• Supervises and monitors Dangote Cement's risk appetite
Overall risk
Group Chief Risk Officer
supervision • Group-wide, super-divisional responsibility for
management of all risks
01 03 • Comprehensive monitoring, analysis and reporting on risk
• Organisation of day to day risk management
Risk Management Function
• Regional Risk Management Nigeria
• Regional Risk Management Pan-Africa
Specialised Risk Sub-Committees
02 • Ad-hoc committees set up to tackle specific risk issues
01 02 03
Board Senior Management front office Risk Management department Audit

• Promote risk culture and desired risk behaviour • Understand business dynamics and • Understand the business of Dangote Cement
in decisions being made complexities for apt risk management and its prevalent or likely risks
• Ensure macro and micro risk management by • Engage all stakeholders for timely redress • Ensure that business owners and risk
limits monitoring for acceptable risk exposures of risks identified management staff identify and control risks
• Continuously monitor positions and report • Ensure a holistic approach to risk management in a timely and optimal manner by providing
inherent risks to relevant stakeholders and risk reporting independent oversight on policies and
procedures deployed organisation wide
stress. Risk appetite is key for our translating specific value drivers into The management of risk is embedded
decision-making process, including series of limits and tolerance levels in each level of our business, with staff
business planning, operations, new ranging from Insignificant to Catastrophic. being responsible for the understanding
product reviews and approvals alongside Tolerance levels define escalation and management of these risks. This is
business change initiatives. Following requirements that enable appropriate carried out by specifying responsibilities
the Board’s approval of the risk appetite actions to be considered and according to the “three lines of defence”
statement, the year under review saw the implemented as required. with each line of defence overseen by
Risk Management function commence responsible personnel, resulting in
By applying scale limits across all our
the process of quantification of the risk preserving a strong design, implementation,
strategic and operational activities, we
appetite statement hinged on converting remediation, monitoring and testing
control specific activities that may have
the Group’s qualitative risk appetite framework focused on independence
material concentration and impact on
statement to a series of metrics, thereby and robust governance.
our business.
Evidence of principal risks occurrence

Threat to Dangote Cement's strategic expansion across Africa due to Inherent risk
R1
restricted FX availability in Nigeria
Residual
High
R1 Impact of truck unavailability from inadequate planning for the receipt and
R2
R7 management of spare parts and tyres
R5 R6 R9
R8 R3 Concentration risk following from annual volumes lifted by few key distributors
R2 R3
R2 R4 IT Infrastructure not robust enough to support future business expansion
R5 R4
Likelihood
Medium
R1 R3
R5 Threat from political instability and security threat across some of our key
markets in Sub-Saharan Africa
R6 R4 R6 Threat of margins shrinking in some of our key markets due to increases in

commodity prices globally, notably crude oil and coal
R7 R8
R7 Underinsurance of assets Group-wide
R9
Low
R8 Threat to our HSSE goals and targets for safety

Low Medium High Credit risk of financial loss arising from non-payment on credit sales to
R9
distributors on the Special Unsecured Credit Scheme
Impact

Strategic report
Principal risks
Principal risks linked to strategic objectives

Strategic objective Principal risks Mitigation efforts
1. Focus on optimising • Impact of political instability or social • In-country security personnel to ensure
the efficiency of our unrest that disrupts our ability to protection of staff and assets
manufacture and/or distribute cement
existing assets to • Constant monitoring of local situations
increase output and • Fuel supply disruption • Ongoing strategies for business continuity
lower costs • Unscheduled operational downtime and crisis management
• IT disruptions through inadequate • Greater control of own fuel supply chain,
infrastructure or training for example our mining initiatives in Nigeria
• Increase in input costs, especially for • Selection of more reliable fuel suppliers
key imports such as fuel
• Constant monitoring of systems and
• Underinsurance of assets regular maintenance thereof
• Financial loss due to non-payment on • Improvements in spare parts inventory
credit sales to distributors on Special and management
Unsecured Credit Scheme
• Develop and maintain appropriate IT
systems to support such a large enterprise
and ensure proper use and training for use
• Review of critical systems deployment and
use, with particular attention to those that
are inadequate for purpose, or being
significantly upgraded
• Use financial strength to drive
buying power
• Group-wide revaluation of assets
• Improvements in systems to monitor sales
and payments, with auto-blocking of
delinquent accounts to limit further losses

01 02 03 04
2. Increase our • Truck unavailability due to inefficient • Investment in new trucks, improvements
leadership of management, accidents, lack of to logistics management systems, better
maintenance and spare parts training for drivers and mechanics,
existing markets constant monitoring of truck condition,
and be the number • Competitive pricing pressures
better standards of maintenance at depot
one or two supplier • Concentration risk and reduced turnaround times on loading
with at least 30% • Operational disruption causing lack
and after delivery
market share of product in market • Use of third-party logistics where available
and appropriate
• Achieve market share sufficient to be
“price maker”
• Focus on product quality, cost and service
as differentiators
• Improve marketing and sales reach by
activating more retail outlets
• Develop broader product range to address
specific needs
• Increase own delivery capability, rather
than rely on third-party collections
• Widen distribution to reduce reliance on
larger distributors for significant volumes
• Develop retail channels, for example
through Container Programme in Nigeria,
or by increasing depot network
• Improved incentivisation of sales staff and
key distributors, with clear performance
targets
• Initiatives as detailed above in strategic
objective 1
3. Tap into high-value • Border shutdowns or bureaucracy • Improve customs procedures with
export markets, causing delays advance notice of transit and better
engagement with local customs
generating useful • Lack of awareness in local markets
infrastructure
foreign currency • Truck unavailability or inefficient logistics
• Improved marketing and brand building
that we can deploy
in territories where we do not produce
outside of Nigeria or import
• Initiatives as detailed above in strategic
objective 2

Strategic report
Principal risks continued
Strategic priorities linked to principal risks continued

4. Expand prudently • Continuing foreign exchange controls in • Continue to drive organic FX generation
into attractive and Nigeria prevent investment outside the through exports from Nigeria
country; lack of available foreign currency
high-growth cement • Improve repatriation of non-Nigerian
markets across • Entry of major producers increases profits back to Nigeria
competition, reduces prices and
Sub-Saharan Africa • Work with regulators to source FX
creates overcapacity
according to our needs
• Assess availability/desirability of external
funding, e.g. through international debt
or other sources of financing
• Continuous monitoring of potential
markets, with rigorous criteria set for
market entry
5. Adhere to high • Harm to staff and/or assets, or other • Constant focus upon improving community
standards of disruption caused by poor community relations through improved engagement
relations, thereby impacting revenues, before and during operations and increasing
corporate increasing costs and creating reputational opportunities for community employment
governance and and potential legal challenges for and involvement to mutual benefit
improve our efforts the Company
• Constant focus on improvements in health
in sustainability • Harm to staff and/or assets caused and safety through deployment of best
by poor operational health and safety practices, better training for safety
management, resulting in injury awareness, improved reporting and
and damage adoption of the 15 Golden Safety Rules
• Reputational damage caused by • Improved environmental awareness,
environmental or safety incidents monitoring, reporting and mitigation
at plants, or during transport of threats
• Stakeholder concerns about • Improved driver training to reduce accidents
corporate governance
• Adoption of international best practices in
corporate governance, including increased
number of Independent Directors with
global experience
• Continuous and transparent engagement
with investors and other external
stakeholders

01 02 03 04

Corporate governance
Chairman’s introduction to corporate governance
Dear shareholders,
Dangote Cement’s vision is to be a
global leader in cement production,
respected for the quality of our goods
and services and for the way we conduct
our business.
At the same time, we are committed
to achieving sustainable growth that
delivers financial returns and other
positive impacts for all our stakeholders.
We recognise that there is a strong link
between good corporate governance
and creation of long-term stakeholder
value and believe it is an essential
foundation upon which to build a
Aliko Dangote GCON
sustainable future for our Company.
Chairman
Good governance drives all aspects
of the business, not just the behaviour
of our Board. It guides our long-term
strategy for growth and profitability,
enabling us to create and increase
shareholder value.
Improving Beyond financial performance, it sets out

principles by which we deal with all our
stakeholders, notably our colleagues,
our suppliers, our customers, our host
governance communities and those who regulate

our activities.
Dangote Cement is the largest public
company in Nigeria, with a market
capitalisation that is typically around
28% of the total capitalisation of the
Nigerian Stock Exchange (NSE).
A successful business is one that We are listed on the NSE’s Premium

Board, which we joined as a Founder
is driven by strong, yet supportive Member in 2015 and which even now
corporate governance that guides

contains just seven companies.
It is therefore my pleasure to introduce
its long-term strategy for profitable this Corporate Governance Report for
2018, which sets out the principles by
and sustainable growth. which Dangote Cement is governed.
It describes the activities of the Board
and its Committees during the year,
and shows how these activities are
themselves determined by international
best practices or by regulation such as
the Securities and Exchange Commission’s
Code of Corporate Governance for Public
Companies in Nigeria (“the SEC Code”).

01 02 03 04
Corporate governance guidelines The Board is accountable for the Between them, they bring a wealth of
Our Board of Directors has established Company’s activities, strategy, risk experience to bear on providing strategic
Corporate Governance Guidelines that management and financial performance direction for the Company and ensuring
provide a framework for the effective as well as the Company’s system of its business goals are achieved.
governance of the Company. The guidelines corporate governance. Board members
As the Chairman of the Board, I am
address matters such as the Board’s are representatives of the stakeholders
accountable to the Board and act as a
mission, its structure and Committees, and are responsible for establishing
direct liaison between the Board and
the responsibilities of Directors, their policies for corporate management and
Management of the Company through
independence and remuneration, the for safeguarding stakeholder interests.
the Group Chief Executive Officer. I
role and appraisal of the Group Chief
The Board sets the strategic objectives provide leadership and am responsible
Executive Officer and our strategy for
for the Company, determines investment for overall operation and governance of
Board and Executive succession.
policies, agrees performance criteria and the Board. I manage the business of the
The Board regularly reviews developments delegates to management the detailed Board and set its agenda in consultation
in corporate governance and updates planning and implementation of those with the Group Chief Executive Officer
the Corporate Governance Guidelines objectives and policies with due and the Company Secretary, with
and other governance materials as it consideration for the Company’s contributions from other Board
deems necessary and appropriate. appetite for risk. members. I also ensure that agendas
strike the right balance between
Our governance policies and practices are The Board also monitors compliance
operational performance and strategic
designed to ensure that our business is with policies and achievement against
matters. I facilitate and encourage active
conducted in a fair, honest and transparent objectives by holding management
engagement of Directors, particularly
manner that conforms to the highest accountable for its activities through
on matters of risk and strategy or other
ethical standards, enables us to build monthly and quarterly performance
major proposals, by drawing on their
strong relationships with customers and reporting and forecast updates.
skills, knowledge and experience.
suppliers, guarantees the welfare of all our
In addition, the Board receives regular
employees, takes care of our environment The positions of the Chairman and Group
presentations enabling it to explore
and gives us the opportunity and resources Chief Executive Officer are separate and
specific issues and developments in
to implement a commendable programme held by different individuals in line with
greater detail. The Board also obtains
of social investment for the good and Section 5.1(b) of the SEC Code.
periodic assurance on the integrity of the
continued sustainability of the
Company’s financial and internal control Joe Makoju is Group Chief Executive
communities in which we operate.
policies, while seeking to institute better Officer and is responsible for the
structures for them. execution of strategy and the day to day
The Board of Directors management of the Group, supported
At the heart of our corporate governance The Board Charter sets out guidelines on
by the Executive Committee (ExCo),
framework is our Board of Directors, Board composition, meeting procedures
which he chairs.
which is responsible for the efficient and guidelines on how the Board is to
execution of corporate strategy based manage its affairs. The Board comprises myself, the Group
upon sound principles of corporate Chief Executive Officer, the Group Chief
Some matters are dealt with exclusively
governance and for ensuring the Financial Officer and twelve Non-Executive
by the Board. These include approval
long-term health and overall success Directors. Of the Non-Executive Directors,
of financial statements, the Company’s
of the business and its financial strength. five are considered to be Independent
business strategy, the annual capital
Non-Executive Directors (following the
The Board serves as the ultimate expenditure plan, major capital projects,
resignation of Olusegun Olusanya on
decision-making body of the Company, major changes to the Company’s
31st December 2018).
except for those matters reserved to or management and control structure,
shared with the shareholders. As Chairman material investments or disposals, The Board considers that the
of the Board, it is my responsibility to risk management strategy, social and Non‑Executive Directors provide good
ensure its effective operation both directly environmental policies and treasury policies. governance for the Company as they
and through its Committees. The roles effectively and constructively challenge
and responsibilities of the Board and these Board composition and monitor the success of management
Committees are clearly documented in As at 31st December 2018 the Board in delivering the agreed strategy within
the Board and Committee Charters. was composed of 16 people with skills the risk appetite and control framework
in manufacturing, finance, engineering, set by the Board.
business and law.

Chairman’s introduction to corporate governance continued
Board composition continued The Board reviews the independent acts as Secretary to all the Committees
The Non-Executive Directors bring a status of the Independent Non-Executive and attends all their meetings.
wide range of international experience Directors on an annual basis, in line with
and expertise to the Board. They occupy the requirements set out in the SEC Board Committees
or have occupied senior positions in Code of Corporate Governance. The Board governs the Company
industry, finance or public life and contribute through the operation of Board
The Independent Non-Executive
significantly to the Board’s decision making. Committees, accompanied by effective
Directors have consistently provided
unbiased and independent views to monitoring and reporting systems.
We consider that the current Board
size of 15 Directors is appropriate for the Board and ensured that minority Each Board Committee has specific
the needs of the business in line with shareholders’ interests are protected. written terms of reference issued by
Section 4 of the SEC Code. We believe the Board. The terms of reference of
They have continually contributed to
that the overall composition of the Board Committees are available on our website.
the overall quality and effectiveness of
is appropriate, except for the ongoing
the Board by providing objective inputs All Committee Chairmen report on the
need to improve gender diversity, which
to strategic issues and decision making, proceedings of their Committee meetings
is being addressed.
while ensuring compliance with applicable at the Board meeting for the quarter.
This conclusion has been reached having statutory rules and regulations. The reports of the Board Committee
regard to the independence of character meetings are included in the papers
and the integrity of our Directors and the The Company Secretary distributed to Board members in
collective experience, balance of skills The Board is supported by Mahmud advance of the next Board meeting.
and knowledge they bring to bear in Kazaure, the General Counsel and
As at 25th February 2019, the Board
fulfilling their duties. Company Secretary, and his Deputy,
has five Committees: Finance and
Edward Imoedemhe.
General Purpose; Audit, Compliance
Independent Directors They provide support, governance advice and Risk Management; Remuneration
The Board has assessed the independence
and detailed guidance to the Directors with and Governance; Nomination; and
of the Independent Non-Executive
respect to their duties, responsibilities and Technical and Operations. Detailed
Directors against the criteria set out in
powers. They also ensure compliance reports from these Committees can
the SEC Code and has concluded that
with procedures and regulations be found on pages 96 to 121.
they are all independent in character
necessary for the conduct of the affairs
and judgement.
of the Board. The Company Secretary
Position Role
Chief Executive Officer • The Chief Executive Officer manages the Company on
a day to day basis, executing the business strategy in
accordance with our corporate ambitions and vision to
be a global force in cement production. The CEO takes
responsibility for creating, planning, implementing and
integrating the strategic direction of the Company.
Chief Financial Officer • The Chief Financial Officer is responsible for ensuring
sound financial management and planning, and for
coordinating the production of timely and accurate
financial reports and accounts. The CFO is also
responsible for treasury management and economic
forecasting and scenario planning.
Non-Executive Directors • The role of Non-Executive Directors is to oversee the

activities of the Company in terms of its strategy, business
performance, risk appetite and human resources. They
provide guidance to and, if necessary, challenge the
Board and Executive Management on strategy.

01 02 03 04
Delegation to Management A summary of the Tenure Policy is Director induction

The Board delegates responsibility for presented below: and development
implementing the Company’s strategy As Chairman, I am responsible for
• Executive Director: An initial term
and for managing the Group to the ensuring that induction and training
of three years with additional terms
Group Chief Executive Officer, who is programmes are provided for Directors
of three years each, subject to
supported by the Executive Committee, based on training needs and gaps
satisfactory performance;
which he chairs. identified in consultation with the Director.
• Non-Executive Director: An initial
The names and profiles of the Executive They are also expected to take
term of three years with additional
Management Team can be found on responsibility for identifying their
terms of three years each, subject
pages 32 and 33. individual needs and to take steps
to satisfactory performance;
to ensure that they are adequately
Board appointments • Independent Non-Executive Director: informed about the Group and their
and re-election of Directors An initial term of three years with responsibilities as Directors.
The Board aims to achieve a balance additional terms of three years each,
subject to satisfactory performance; The Board has established an Induction
of experience, knowledge and skills and Training Policy for Directors and
amongst its Directors. and
Directors receive periodic training and
The Board, through the Nomination Non-Executive Directors who are 70 induction. Cherie Blair and Sir Michael
Committee, follows a formal, rigorous or more years of age are disclosed to Davis underwent this induction in 2018.
and transparent procedure to select shareholders at Annual General Meetings
in line with Section 256 of the Companies During the year, the Board also arranged
and appoint new Directors. briefings and a Board retreat to assist
and Allied Matters Act, CAP C20, LFN
The Nominations Committee leads the 2004 (CAMA). the Directors in effectively discharging
process in accordance with the Board’s their duties to the Company. Directors
appointment policy, utilising defined All Directors are required to retire by also attended education programmes
Board membership criteria while taking rotation and stand for reappointment at to refresh and update their knowledge of
into cognisance the existing skills, least every three years in compliance with business operations and best practices.
knowledge and experience of Directors the provisions of CAMA and Section 19 A Board retreat was held in London in
on the Board as well as those of the of the SEC Code. December to coincide with the final
nominee, including other attributes At the Annual General Meeting on Board meeting of the year.
necessary for the prospective role. 20th June 2018, Devakumar Edwin, The Board is confident that all its members
When considering the appointment Emmanuel Ikazoboh, Joseph Makoju have the knowledge, ability and experience
of a new Director, the Board also takes and Dorothy Ufot retired by rotation to perform the functions required of a
cognisance of current directorships on and were presented for re-election director of a listed company.
other Boards so as to avoid potential to the Board. The re-election of these
conflict of interest and ensure that Directors was ratified by shareholders. Board and Committee meetings
Directors will be able to dedicate At the 2019 Annual General Meeting, Board and Committee meetings are held
the appropriate time and attention the following will retire by rotation and be in an atmosphere of intellectual honesty
to the Company. presented for re-election: Aliko Dangote, of purpose, integrity and mutual respect,
Abdu Dantata, Olakunle Alake and requiring reporting of high standards by
The Appointment Policy of the Board is
Ernest Ebi. management and direct, robust and
in line with Section 13.1 of the SEC Code.
constructive challenge and debate
Upon appointment, a new Director is Appointment of new Directors among the Company’s Directors.
issued a letter of appointment that sets The Board recognises the need to reinforce Meeting dates for Board and Committee
out the expected time commitment, its effectiveness by injecting new energy, meetings are agreed in advance for
tenure, role, responsibilities and fresh ideas and perspectives. proper planning and scheduling.
powers of the Director.
In this regard, we welcomed Cherie Blair Notices of meetings are sent to Directors
The Company has a defined Tenure and Sir Michael Davis to the Board in at least 14 days before the meeting and
Policy in line with Sections 19 and 20 April 2018 and their appointments were Board papers are sent for consideration
of the SEC Code, which regulates the ratified by shareholders at the 2018 by Directors at least a week before the
terms of Directors. Annual General Meeting in June 2018. meeting date.
Between them they bring extensive
experience of global business,
corporate transactions, international
law and governance.

Chairman’s introduction to corporate governance continued
Board and Committee meetings A summary of the related-party Board and Directors’ evaluation
continued transactions during the 2018 financial year In line with the provisions of the SEC
Working with the Company Secretary, is disclosed in the table on pages 193–195. Code and in accordance with the Board
I implement an Annual Agenda Plan to Evaluation Policy of the Company, we
assist the Board and its Committees in Review of Governance Framework conduct evaluations of the Board and
discharging their roles and responsibilities and policy formulation individual Directors to help improve
in line with their charters. The Board ensures ongoing review their performance.
of the Company’s Governance The process is designed to:
This Annual Agenda Plan is a guide
Framework, to ensure that:
to specify the minimum agenda items • enhance individual and
to be considered by the Board and its • Dangote Cement’s governance practices Board performance;
Committees at various meetings during accurately reflect recent changes to
the year. the business and its structure; • highlight the balance of skills, knowledge
and experience on the Board;
Board meetings were well attended • the Governance Framework sets out
with attendance of Directors exceeding and reinforces the Company’s values; • assist Directors and the Company
two-thirds as required by Section 12.2 Secretary to identify and sustain
• the risk and assurance processes are their strengths;
of the SEC Code. Details of Directors’
a robust and integral part of the
attendances at Board and Committee • assist in identifying training and
Governance Framework; and
meetings are shown in the table on developmental needs for Directors
pages 212-214. • the Framework reflects best and the Company Secretary;
governance practices.
Key matters considered in 2018 • comply with the relevant statutory
Further to these reviews, the Board or regulatory requirement and
The Board met seven times during 2018
approves the formulation of policies that determine eligibility of Directors
and at least once every quarter in line
are in line with good governance and to seek re-election;
with Section 12.1 of the SEC Code.
has taken cognisance of the regulatory
Details of key matters discussed at • clarify expectations and duties of the
and business environment.
these Board meetings are shown in Board and individual Directors; and
the table on page 87. As at 25th February 2019, Dangote
Cement has a total of 22 approved • demonstrate accountability to
Conflicts of interest and policies. They are shown in the table shareholders and other stakeholders.
related-party transactions on page 202 and 203. To ensure that the process is objective,
The Board maintains robust procedures independent and fair, we engaged the
to ensure that related-party transactions Code of Ethics services of an external facilitator to
and potential conflicts of interest are The Board has formalised a Directors’ undertake an independent evaluation
identified, disclosed and managed. Code of Ethics, setting out the standards of the effectiveness of the Board and
These procedures include the declaration of conduct expected from Directors. its Committees. The evaluation was
of interests in other businesses by To this end, the Directors attest to a Code conducted by Ernst & Young and
Directors on appointment to the Board of Conduct on a yearly basis. To inculcate involved personal interviews with
and annual self-certification by all of good ethical conduct, the Group has Directors and questionnaires.
our Directors. also established a Code of Conduct for
employees, which has been disseminated At the end of the review process, we
Where it is identified that a related-party to all levels of employees in the Group received a detailed report with several
relationship exists, the Board agrees through the staff handbook. recommendations, both for short and
specific additional procedures to ensure long-term implementation. We identified
the effective management of potential those which we believed to be of higher
Succession planning
conflicts of interest. These procedures priority and commenced implementation.
The Board views succession planning
have been documented in our Conflict
as important for business continuity. The outcome of the evaluation assists the
of Interest Policy, which is in line with
It is acknowledged that with succession Board in determining future information
Section 16 of the SEC Code.
planning, the key job vacancies created relevant to Board and Board Committees’
The Board also receives a quarterly due to retirement and resignation would composition, responsibilities and
Related-Party Transaction Report be filled quickly and without any business operations. The Board performance
showing transactions that have been interruption. To ensure its success, the appraisers also facilitated a Directors’
authorised during the period under Board has, in line with the Succession peer assessment, where each Director
review and those proposed for review Planning Policy, adopted a Succession is provided with a questionnaire to
by the Board. Plan to ensure that there are programmes appraise the performance of their peers.
in place to provide for the orderly
succession of Senior Management.

01 02 03 04
The evaluation seeks to measure the

perception of Directors of the contribution
of their fellow Directors on the Board.
The evaluation of the Executive Directors
assesses their performance as Directors
of the Board, rather than their functional
Executive responsibilities, against set
criteria. Where a deficiency in a
Director’s performance is identified,
an action plan will be developed and
implemented for the Director to acquire
the necessary skills or develop appropriate
behavioural patterns.
Upon completion, the results are
collated and given to the Chairman, who
in turn provides assessment feedback
to each Director. The evaluation provides
justification for re-election of Directors.
Consequently, the nomination of each
Director for re-election occurs after the
proper evaluation of the performance As Chairman, I also had occasional The Chairmen of the various Committees
of that Director by all other Directors. meetings with institutional investors and I are also available to answer
to discuss matters of mutual interest shareholders’ questions during
These processes identify strengths as well including corporate strategy and our formal proceedings of the Annual
as areas that need improvement in the developments in corporate governance. General Meeting.
Board and the identified knowledge
gaps, and training programmes for The Annual General Meeting to discuss
Annual General Meeting this 2018 Annual Report will be held at
Directors to attend in the following The Annual General Meeting of the
financial year. the Eko Hotel, Victoria Island, Lagos, at
Company is the principal opportunity 11.00 on 17th June 2019.
for the Board to meet shareholders
Shareholder engagement and for me, as the Chairman, to give I hope the following pages of this 2018
As a Board of a Premium-listed company a progress report on the Company’s Annual Report, which outline the work
on the Nigerian Stock Exchange, our activities during the year, and provide of our Committees during the year, will
Board attaches considerable importance clarifications on issues raised be interesting and informative to you as
to open dialogue and constructive by shareholders. owners of the Company.
relationships with shareholders and
other stakeholders. We encourage shareholders to take
advantage of this opportunity to engage
We have a dedicated Investor Relations with our Board and Senior Executives.
team that reports to the Group Chief Shareholders have the right to ask
Financial Officer. The team is responsible questions at the Annual General Aliko Dangote
for building and maintaining long-term Meeting, or by submitting them in writing Chairman
relationships with institutional investors 25th February 2019
to the Company Secretary no later than
and equity research analysts, as well 24 hours before the start of the AGM.
as with private investors. In addition,
it provides feedback to the Board on The Notice of Annual General Meeting is
market perceptions of the Company. sent to all our shareholders, together
with explanatory notes or a circular on
Extensive communication with investors, items of special business, at least 21
brokers and equity research analysts was working days before the AGM is held.
conducted in 2018, through quarterly
results calls, one-to-one meetings, group It is the Company’s practice to propose
meetings, site visits, investor roadshows separate resolutions on each substantially
and attendance at investor conferences separate issue, including a resolution
focused on emerging markets and the relating to the Report and Accounts.
building materials sector. This is with the exception to matters
where CAMA allows more than one item
to be decided by a single resolution.

The Board of Directors

as at 31st December 2018
Aliko Dangote GCON Engr. Joseph Makoju Mni, OFR. Brian Egan Olakunle Alake
Chairman Group Chief Executive Officer Group Chief Financial Officer Non-Executive Director
Attendance Attendance Attendance Attendance
Ⅹ
Cherie Blair CBE, QC Sani Dangote Abdu Dantata Sir Michael Davis
Independent Non-Executive Director Non-Executive Director Non-Executive Director Independent Non-Executive Director
Ⅹ Ⅹ Ⅹ Ⅹ Ⅹ Ⅹ Ⅹ
Ernest Ebi MFR Devakumar Edwin Emmanuel Ikazoboh Fidelis Madavo

Independent Non-Executive Director Non-Executive Director Independent Non-Executive Director Non-Executive Director
Olusegun Olusanya* Viswanathan Shankar Dorothy Ufot SAN Douraid Zaghouani

Independent Non-Executive Director Non-Executive Director Independent Non-Executive Director Non-Executive Director
Board meetings Key

were held on the following dates: Attended Not attended Ⅹ Medical absence Not yet joined
27/02/18, 19/03/18, 20/04/18, 20/06/18, 19/07/18, 19/10/18, 05/12/18
Board Committees
Nomination Audit, Compliance Finance and Technical Remuneration

Committee and Risk General Purpose and Operations and Governance
Members Management Committee Committee Committee
Aliko Dangote (Chairman) Committee Members Members Members
Ernest Ebi Olusegun Olusanya* Fidelis Madavo (Chairman) Emmanuel Ikazoboh
Members
Olusegun Olusanya* (Chairman) Olakunle Alake (Chairman)
Ernest Ebi (Chairman)
Emmanuel Ikazoboh Olakunle Alake Abdu Dantata Sani Dangote
Olakunle Alake
Fidelis Madavo Sani Dangote Ernest Ebi Abdu Dantata
Sani Dangote
Devakumar Edwin Ernest Ebi Devakumar Edwin Ernest Ebi
Emmanuel Ikazoboh Devakumar V G Edwin Douraid Zaghouani Devakumar Edwin
Fidelis Madavo Emmanuel Ikazoboh Olusegun Olusanya*
Olusegun Olusanya* Fidelis Madavo Dorothy Ufot
Dorothy Ufot Douraid Zaghouani
Full Committee Full Committee Full Committee Full Committee Full Committee
Report 96–97 Report 98–105 Report 106–109 Report 110–113 Report 114–121
* Resigned 31st December 2018.

01 02 03 04
Board activities
Key activities of the Board

Key matters considered Board activities
Appointment of new • The Board, in consideration of its internal processes, policies and best practice, appointed
Directors two new Directors as Independent Non-Executive Directors of the Company. The
appointments will enhance Board effectiveness as well as progress the Board towards its
gender diversity objectives.
Issuance of a Naira bond • The Board considered and approved a ₦300B Naira Bond programme, which will be used
for capital expenditure, working capital and general development.
Issuance of a • The Board approved a capital raising of up to ₦150B through the issuance of a
Commercial Paper Commercial Paper, whether as a standalone transaction or by way of a programme to be
executed in tranches, series or proportions, to be deployed towards capital expenditure,
working capital and general corporate purposes. Two tranches of ₦50B were successfully
issued during the year.
Review and approval • The Board reviewed and approved the Budget for the succeeding financial year.
of a budget
Subsidiary Board • The Board approved the reorganisation of the subsidiaries' Boards in line with regulatory
reorganisation requirements and for operational efficiency.
Key appointment • The Board resolved on the appointment of a Deputy Company Secretary for the Company.
Investor relations • The Board considered and approved the investor relations calendar for 2019.
Board and individual • The Board approved the commencement of a Board and individual Director evaluation to
Director evaluation cover the 2019 financial year.
Management trainee • The Board approved the commencement of a graduate trainee scheme to train
scheme participants in general management.
Board and subsidiary • The Board reviewed and approved Board and Committee Meeting dates for the financial
Board meetings year under review.
Approval of financial • The Board reviewed and approved the audited financial statements for 2017 and submitted
statements the same to the shareholders to approve at the Annual General Meeting.
Approval of dividends • The Board proposed a dividend of ₦10.5 per 50 kobo share for the 2017 financial year,
which was approved by shareholders at the Annual General Meeting.
Control environment • The Board received reports on the control environment, and approved recommendations
of the Committee towards strengthening the efficacy of the control environment.
Appointment of a new • The Board approved the appointment of Joseph Makoju as the Group Chief Executive
Chief Executive Officer of the Company.
Quality/operational • The Board reviewed and approved several initiatives to enhance quality and improve
efficiency operational efficiency in the Company.
HSSE • The Board reviewed and approved systemic and strategic approaches to improve health,
safety, social and environmental matters within the Company and its subsidiaries.
Transport • The Board reviewed and approved strategic approaches to improve transport operations in
the Company.
Quarterly accounts • The Board reviewed and approved unaudited quarterly accounts of the Company.
Annual General Meeting • The Board resolved on the date, venue and other modalities for the Annual General Meeting
of the Company.
Sales and marketing • The Board considered and approved a sales and marketing strategy for the year.
Financing of subsidiaries • The Board considered and resolved to refinance its Pan-African subsidiaries as required.
Potential international • The Board formed an advisory committee to examine the possibility of an international
listing of shares listing of its shares, and to advise upon strategies and practicalities to achieve such a listing.

Board of Directors
Aliko Dangote GCON Engr. Joseph Makoju Mni, OFR. Brian Egan
Chairman Group Chief Executive Officer Group Chief Financial Officer
N
Date of appointment Date of appointment Date of appointment

4th November 2002 2nd December 2010 27th July 2017
Aliko is the founder of the Dangote Industries Joseph was appointed to the Board of Dangote Brian joined Dangote Cement as Group Chief
Limited, over which he presides as President. Cement in 2010, as a Non-Executive Director. Financial Officer in 2014, having previously been
He has been the Chairman of Dangote He became Acting Group Chief Executive an Executive Director and Chief Financial
Cement since its formation and is also the Officer in January 2018, having substantial Officer of Petropavlovsk PLC and of Aricom
Chairman of other listed companies owned by experience in the cement industry. PLC, both of which were listed on the Main
Dangote Industries Limited. He graduated Market of the London Stock Exchange.
from the Al-Azhar University, Cairo, where he He has worked in several world-class
studied Business Studies. corporations including Shell BP, Blue Circle Prior to joining Aricom, he was Chief Financial
(UK) and WAPCO (now Lafarge Africa), which Officer of Gloria-Jeans Corporation, a leading
He also obtained Honorary Doctorate degrees he led as Managing Director/CEO for a decade Russian apparel manufacturer and retailer. He
from Coventry University in the United Kingdom before taking up the appointment as Managing has more than 20 years’ international experience
and the University of Ibadan in Nigeria in 2016. Director/CEO of National Electric Power Authority. in senior financial roles with Associated British
He started business in 1978 by trading in He also served as Special Adviser (Electric Foods PLC, Georgia-Pacific Ireland Limited
commodities, before entering into full scale Power) to the President, Federal Republic of and Coca-Cola HBC.
manufacturing. He is well known for his Nigeria, under two separate administrations.
philanthropic involvement in local and He also trained as an accountant with KPMG
international initiatives to improve healthcare He has a BSc and an MPhil in and is a member of the institute of Chartered
and social wellbeing. Mechanical Engineering. Accountants in Ireland.
Abdu Dantata Cherie Blair CBE, QC Devakumar Edwin

Non-Executive Director Independent Non-Executive Director Non-Executive Director
R T A F R T

22nd July 2005 20th April 2018 22nd July 2005
Abdu is a Non-Executive Director of Dangote Cherie Blair CBE, QC, is a leading international Devakumar was previously the Chief Executive
Cement Plc and an Executive Director of lawyer, arbitrator and mediator, a former judge Officer of Dangote Cement, until he resigned as
Dangote Industries Ltd. and a committed campaigner for women’s Group CEO on 31st January 2015. Following
rights. She is the Founder of the Cherie Blair 14 years spent in industrial management in
He is also the Chairman of Agad Nigeria Limited, Foundation for Women, and the Founder and India, he joined Dangote Industries Limited in
a trading and transportation company operating Chair of Omnia Strategy LLP, an international 1992 and has since held several managerial
throughout Nigeria. He is a fellow of the Nigerian law firm. She is Chancellor of the Asian University positions within the Group.
Institute of Shipping. for Women, Chancellor Emeritus of the
Liverpool John Moores University, President He is a Chartered Engineer, holding graduate
He obtained an Executive Programme and master’s degrees in Engineering from
Certificate in Sales and Marketing from of the Loomba Foundation, Honorary Vice
President of Barnardo’s and Patron of Scope, the Madras University, India, and holds a
the Kellogg Senior Management School postgraduate diploma in Management from
at Northwestern University, Chicago. as well as a number of other charities.
IITM, Holland, all obtained in 1978, 1980
She serves as an Independent Director on the and 1986 respectively.
Board of Groupe Renault. She was awarded
a CBE in 2013 for services to women’s issues
and to charity in the UK and overseas.

01 02 03 04
Key
A Audit, Compliance and Risk Management S Statutory Audit
F Finance and General Purpose T Technical and Operations
N Nomination Chairman
R Remuneration and Governance
Dorothy Ufot SAN Douraid Zaghouani Emmanuel Ikazoboh

Independent Non-Executive Director Non-Executive Director Independent Non-Executive Director
A R F T A F N R S

19th April 2016 29th April 2015 30th January 2014
Dorothy is the first woman to be appointed to Douraid Zaghouani was appointed to the Emmanuel has more than 25 years’
the Board of Dangote Cement, in recognition Board of Dangote Cement on 29th April 2015 experience in Senior Management roles in
of her vast experience in the field of commercial as a Non-Executive Director. At present, Nigeria, Côte d’Ivoire, Cameroon and South
law. She has more than 26 years’ experience Douraid is Chief Operating Officer of the Africa. He is currently Chairman of Ecobank,
in commercial litigation at trial and appellate Investment Corporation of Dubai (ICD). the Pan-African banking group. Previously, he
levels, having been admitted to the Nigerian was the Managing Partner for Francophone
Bar in 1989 and then admitted to the Inner He manages the areas of Strategy, Government offices in Côte d’Ivoire and Cameroon and
Bar as a Senior Advocate of Nigeria (SAN) Relations, Marketing, Corporate Communications, later became the Managing Partner/CEO
in April 2009. Legal and Compliance, Finance and Funding, of Deloitte West and Central Africa, until
Risk and Information Technology. Prior to 2009. He was appointed by the SEC as an
She is an internationally recognised expert joining ICD, he was with Xerox for more than Interim Administrator, to carry out capital
in commercial dispute arbitration, and was 25 years and was Chairman of the Board market reforms of the NSE and the CSCS.
appointed member of the International of several Xerox companies. During his long He serves on several corporate boards as
Chamber of Commerce’s International Court and distinguished career, he has held a number Chairman or Non-Executive Director.
of Arbitration, Paris, in 2006. She later became of senior general management, sales and
one of eight Global Vice Presidents of the ICC marketing roles in Europe and North America.
Commission on Arbitration in 2014.
Ernest Ebi MFR Fidelis Madavo Sir Michael Davis

Independent Non-Executive Director Non-Executive Director Independent Non-Executive Director
A F N R T A F N T

30th January 2014 30th July 2014 20th April 2018
Ernest has more than 40 years of Fidelis is the Head of Resources and Sir Michael Davis is Chairman of Macsteel,
banking experience from various leadership Portfolio Manager for Strategic and African a global trading and shipping company.
positions in Nigeria, including Chairman, Listed Investments at the Public Investment From 2001 to 2013 he was Chief Executive
UNIC Insurance PLC; Executive Director, Corporation of South Africa (PIC), which is of Xstrata, one of the world’s largest global
Corporate Banking of African Continental South Africa’s state pension fund and the diversified mining and metal companies. Prior
Bank PLC; and Deputy Managing Director largest fund in Sub-Saharan Africa. to joining Xstrata he was Executive Director
and Chief Operating Officer of Diamond Bank and Chief Financial Officer of Billiton plc.
Limited (prior to its re-registration as a public He represents the interests of shareholder
limited liability company). PIC on the Board of Dangote Cement. He has extensive capital markets and
Prior to joining PIC, he was Vice President corporate transaction experience. During his
From June 1999 to October 2009, he was at Citigroup and Investec Securities, both career, he has raised more than $40B from
the Deputy Governor at the Central Bank of roles being based in Johannesburg. Before global capital markets and successfully
Nigeria. In November 2016, he was appointed returning to South Africa, Fidelis spent ten completed more than $120B of corporate
Chairman of Fidelity Bank PLC. years with CRU International, a mining transactions including the listing of Billiton on
consultancy firm, and also worked as a the London Stock Exchange, the merger of
metallurgist for Anglo American. BHP and Billiton into the largest diversified
mining company in the world and the
successful merger of Xstrata and Glencore.

Board of Directors continued
Olakunle Alake Olusegun Olusanya Sani Dangote

Non-Executive Director Independent Non-Executive Director Non-Executive Director
A F S T A F N R S A F R

22nd July 2005 2nd December 2010 22nd July 2005
Olakunle is the Group Managing Director of Resigned Sani is a businessman with more than 30 years’
Dangote Industries Limited. He was appointed 31st December 2018 experience in key sectors of the Nigerian
to the Board of Dangote Industries Limited economy including manufacturing, agriculture
as Executive Director in 2001. Olusegun was appointed to the Board in and oil services. He is the Vice President
2010. He was Deputy General Manager, of Dangote Industries and sits on the board of
He holds a bachelor’s degree in Civil Engineering Finance and Strategic Planning at Savannah several other companies. He is also the
from Obafemi Awolowo University, lle-Ife Bank Nigeria PLC, Executive Director at Deputy Chairman of African Gum Arabic
and is a Fellow of the Institute of Chartered Afribank Nigeria Plc and Executive Director Producers Association, a Fellow of the Nigeria
Accountants of Nigeria. He joined Dangote at Union Bank PLC between 1993 and 1999. Institute of Shipping and President of the
Industries Limited in 1990, after six years at He was also Chairman of the National Bank Fertiliser Producers & Suppliers Association.
Price Waterhouse Coopers. He has held of Nigeria Limited and sits on the board of
several management positions in Dangote several companies. He is Vice Chairman of In 2012, he completed the Owner/President
Industries Limited, including Financial Meristem Securities Limited and Non-executive Management Programme at the Harvard
Controller and Head of Strategic Services. Director of Tripple Gee & Co PLC. Business School in the United States of America.
Board balance
6+38+56M 88+12+M
Independence Gender diversity
Chairman Male
Viswanathan Shankar Independent Female
Non-Executive Director Non-independent
Date of appointment
10th December 2017
Viswanathan is Chief Executive Officer
31+25+1331M 69+13+5M
of Gateway Partners, a private equity firm
focused on investing in the dynamic growth Tenure Location of Director
markets of Africa, Middle East and Asia.
He previously served as CEO – Europe,
Middle East, Africa and Americas, and member
of the global board of Standard Chartered Plc.
His past non-executive roles include the boards
of the Inland Revenue Authority Singapore 1–3 years Nigeria
3–6 years Europe
and the Economic Strategies Committee and
6–10 years UAE
the National Integration Council constituted by 10+ years South Africa
the government of Singapore; the Sub-Saharan
Advisory Board of the Exim Bank USA; Vice
Chair of the Future of Banking Global Agenda
Council of the World Economic Forum.

01 02 03 04
Directors’ report
1. The Board is charged with ensuring

that appropriate values, ethics and
behaviours for the conduct of the
C
ompany are agreed and that
appropriate procedures and policies
are in place to ensure that these are
implemented effectively. The Board
ensures leadership through effective
oversight and review. Supported by
its principal Committees, the Board
sets the Company’s strategic direction
and aims to deliver a sustainable
increase in shareholder value over
the longer term.
2. The Board ensures that proper
Mahmud Kazaure accounting records are maintained,
Company Secretary that accounting policies are used
and consistently applied and that
appropriate financial statements
are prepared on the going concern
basis, in conformity with applicable
law and standards. Most of this
responsibility is delegated to the
The Directors present the Annual Report Principal activities and future plans Finance and General Purpose
of the Company for the year ended The Company was established for the Committee.
31st December 2018. operation of factories for the preparation, 3. The Board ensures that adequate
manufacture, sale and distribution of internal control procedures are
The Directors have considered all the matters
cement and related products. established to safeguard the assets
brought before them in the financial year
under review and are satisfied that the The operational activities of the Company of the Company and to present and
Annual Report represents a fair, balanced are undertaken at various plants in Nigeria detect fraud and other irregularities.
and realistic view of events. and through its subsidiaries in nine other It also oversees the implementation
countries in Sub-Saharan Africa. of appropriate risk assessment
Our Corporate Governance Report, which systems and processes to identify,
forms part of this Report, is in accordance Details of these production, grinding manage and mitigate the principal
with international best practice, and and import facilities can be found on risks of the Company’s business.
shows our governance systems, culture pages 38 to 47. Details of future plans Much of this work is delegated to
and unique way of operating. are contained in the Chairman’s the Audit, Compliance and Risk
Statement on pages 8 to 9 and in the Management Committee.
Legal form Operational Review on pages 26 to 47.
Dangote Cement Plc, previously named 4. The Board implements effective
succession planning at Board and
Obajana Cement Plc, was incorporated Directors’ responsibilities
in Nigeria as a public limited company Executive Management level and
The Directors are responsible for the
on 4th November 1992 and commenced assesses the processes in place to
preparation of the financial statements,
operations in January 2007. ensure that there is appropriate
which they confirm give a true and fair
succession planning amongst Senior
view of the state of affairs of the Company
In 2010, the name of the Company was Management. Much of this
and of the profit or loss for that period.
changed from Obajana Cement Plc to responsibility is delegated to the
Dangote Cement Plc by virtue of a special The financial statements comply with the Remuneration and Governance
resolution dated 14th July 2010. provisions of the Companies and Allied Committee.
Matters Act, Cap 20, Laws of the
Dangote Cement Plc listed its shares 5. The Board develops and implements
Federation of Nigeria 2004.
on the Nigerian Stock Exchange (“the Board and governance policies in line
Exchange”) on 26th October 2010. In so doing they ensure that they act with regulatory requirements and
It has always been the largest company in accordance with the Directors’ international best practice. Much
traded on the Exchange, with a current responsibilities outlined below: of this responsibility is delegated
market capitalisation of ₦3,279 billion to the Remuneration and
as at 25th February 2019. Governance Committee.

Directors’ report continued
Directors’ responsibilities continued Results for the year Members are encouraged to notify the
6. The Board ensures that the technical Group revenue increased by 11.9% to registrars or the Company Secretary of
and operational aspects of the ₦901.2 billion (2017: ₦805.6 billion). any changes in address or other relevant
business are conducted efficiently information and take advantage of the
EBITDA increased by 12.1% to
and with regard to global best e-dividend system by completing the
₦435.3 billion (2017: ₦388.1 billion).
practices. It assesses the feasibility of form included on page 217.
proposed new projects and ensures Net profit for the year was ₦390.3 billion
that the operational, technical, (2017: ₦204.2 billion). Directors
production, sustainability and staffing As at 25th February 2019, Dangote
Earnings per share increased by 95.9%
aspects of our plants are adequate, Cement had 15 Directors, all of whom
to ₦22.83 (2017: ₦11.65).
comply with local and international held office in the year ended 31st
laws and are aligned with our December 2018. Their biographies are
business goals. It is also responsible Dividends contained on pages 88 to 90 and are
for overseeing new technical and The Directors pursue a dividend policy that
incorporated into this report by reference.
development programmes within the reflects the Company’s earnings and cash
flow, while maintaining appropriate levels Olusegun Olusanya resigned on
business. Many of these responsibilities
of dividend cover. 31st December 2018.
are delegated to the Technical and
Operations Committee. They consider the capital needed to The appointment, removal or reappointment
fund the Company’s operations and of Directors is governed by the
Strategic report and results expansion plans. Company’s Articles of Association,
The strategic report comprises the the Companies and Allied Matters Act
For the 2018 financial year, the Directors
following, each of which is incorporated (CAMA), LFN 2004 as well as relevant
have recommended a dividend of
by reference into, and forms part of, this Board and governance policies.
₦16.00 per ordinary 50 kobo share
Directors’ Report: These documents also set out the
(2017: ₦10.50).
rights and obligations of Directors.
• the Chairman’s Statement on pages
The final dividend, if approved by
8 and 9;
shareholders at the Annual General Directors’ interests
• the Interview with the Chief Executive Meeting on 17th June 2019, will be paid In accordance with Section 275 of
on pages 34 to 36; on 18th June 2019 to shareholders the Companies and Allied Matters Act,
listed on the register as at the close of CAP C20 LFN 2004, Directors’ direct
• Operating review on pages 37 to 47;
business on 3rd June 2019. and indirect interests in the issued share
• the Financial Review on pages 64 capital of the Company are recorded
The Board considers that the proposed
to 69; in the Register of Members as at
dividend level is appropriate and is in
31st December 2018 and contained
• the Corporate Governance Report on line with the Company’s strategic
on the opposite page of this report.
pages 80 to 85; growth objectives.
• the Nomination Committee Report on Conflicts of interest
pages 96 and 97; Unclaimed dividends
The Company maintains a Register of
The total amount of unclaimed dividends
• the Audit, Compliance and Risk Directors’ Interests in accordance with
outstanding as at 31st December 2018
Management Committee Report the requirements of the Companies and
is ₦2,602,841,364.
on pages 98 to 105; Allied Matters Act, CAP C20, LFN 2004.
A list of unclaimed dividends is available The Company also applies a conflict of
• the Finance and General Purpose on the Company’s website: interest policy developed in accordance
Committee Report on pages 106 www.dangotecement.com. with international best practice, and
to 109; Investment and Securities Act, Laws
The Company notes that some dividend
• the Technical and Operations of the Federation, 2007.
warrants have either remained unclaimed,
Committee Report on pages 110 are yet to be presented for payment by
to 113; and shareholders, or have been returned to Powers of Directors
the Company for revalidation. Subject to the Articles of Association
• the Remuneration and Governance of Dangote Cement, prevailing legislation
Committee Report on pages 114 Therefore, all shareholders with “unclaimed and any directions given by special
to 121. share certificates” or “unclaimed dividends” resolution, the business and affairs
These sections also include details of should address their claim(s) to the of the Company are managed by
expected future developments in the registrars, United Securities, or to the the Directors, who in utmost good faith
Company’s business and details of Company Secretary at the registered exercise all such powers for and
the key performance indicators. office address. Addresses are contained on behalf of the Company.
on pages 208 and 209.

01 02 03 04
Supplier payment policy business decisions; ensure that our staff, We are committed to high standards of
It is the policy of the Company to clients and suppliers are fully aware of our corporate governance and global best
agree and clearly communicate the Sustainability Policy and are committed practice, both in Nigeria and countries
terms of payment as part of the commercial to implementing and improving it; and in which we operate.
agreement negotiated with suppliers and minimise the impact on sustainability
Our focus at all times is recognition of
then to pay according to those terms of all our mining, production,
and compliance with all laws regulating
based upon receipt of an accurate invoice. administrative, sales and transportation
the business. The Chairman’s Introduction
activities. Our approach to sustainability is
Trade creditor days for the year ended to Corporate Governance details
explained across several sections of this
31st December 2018 were 82 days on compliance with relevant legislation
Annual Report, each related to Dangote
average for the Company (2017: 82 days). and relations with shareholders on
Group's 7 Sustainability Pillars, which are
pages 80 to 85 and forms part of
summarised on pages 4 and 5.
Donations this Directors’ Report.
Donations, sponsorship and charitable The Company pursues an active
donations amounted to ₦1.3 billion programme of investor relations with
and investor relations
(2017: ₦1.0 billion), as detailed on investor meetings and earnings calls
During the 2018 financial year, the
pages 210 and 211. throughout the year.
Company complied with the NSE
Post-Listing Requirements and has not Its website contains substantial
Sustainability been fined by the SEC, NSE or CAC for
Dangote Cement is committed to information about the Company's
any contraventions. performance and strategy.
promoting sustainable growth for the
benefit of all stakeholders. Concern for Dangote Cement has emerged as
the environment and promoting a broader a truly multinational manufacturing Employees
sustainability agenda are integral to the enterprise, promoting regional Dangote Cement operates a policy
Company’s professional activities and integration and providing growth and of non-discrimination and considers
the management of the organisation. employment opportunities for African all applications equitably.
economies through the utilisation of
We aim to comply with, and exceed where Based on the Company’s policy, the
Africa’s natural resources by Africans
practicable, all applicable legislation, most qualified person is recruited for the
and for Africans.
regulations and codes of practice; integrate position, irrespective of religion, ethnic
sustainability considerations into all our group, physical condition or state of origin.
Ordinary shares of 50 kobo each
As at 31st December 2017 As at 31st December 2018 As at 25th February 2019
Aliko Dangote 14,522,050,220 14,522,050,220 14,527,958,138

Direct 27,642,637 27,642,637 27,642,637
Indirect 14,494,407,583 14,494,407,583 14,500,315,501
Olakunle Alake 4,931,702 6,931,702 6,931,702
Devakumar Edwin 2,000,000 5,000,000 5,000,000
Ernest Ebi 100,000 100,000 100,000
Emmanuel Ikazoboh 98,149 98,149 98,149
Direct — — —
Indirect 98,149 98,149 98,149
Olusegun Olusanya* 16,313 16,313 16,313
Engr. Joseph Makoju Mni, OFR. 11,000 11,000 11,000
Abdu Dantata 8,680 8,680 8,680
Cherie Blair — — —
Alhaji Sani Dangote — — —
Sir Michael Davis — — —
Brian Egan — — —
Fidelis Madavo — — —
Viswanathan Shankar — — —
Dorothy Ufot — — —
Douraid Zaghouani — — —
* Resigned 31st December 2018. Annual Report 2018 Dangote Cement Plc 93
Directors’ report continued
Employees continued Health, safety at work The Company provides adequate

Where existing employees become and welfare of employees personal protective equipment (PPE)
disabled, it is the policy, wherever Dangote Cement recognises the and other critical safety equipment and
practicable, to provide continuing importance of safeguarding the health has a system to monitor compliance.
employment under similar, or if required and safety of its workforce, including its The Company also ensures that
and possible adjusted, terms and contractors, and manages the impact adequate safety clauses are included
conditions and to provide training on the environment resulting from its in the contracts to which it is a party.
as appropriate. activities, thereby building constructive The Company has developed several
We review our employment policies and sustainable relationships with Health, Safety, Security and Environment
in line with the strategic objectives of stakeholders based on trust and respect. (HSSE) policies, established the 15 HSSE
its business. The Company is therefore committed to: Golden Rules and implemented a suitable
incentive scheme to reward good HSSE
Key employees are recruited to add • complying with all laws and regulations practice across the Group.
value to the Company and ensure high applicable in its operating environment;
performance based on clearly defined This is because we believe that
performance indices. • identifying, measuring and protection and care of the environment
understanding the health, safety, is essential to the sustainability and
Employees are provided with information environmental and social impact growth of the Company in the long term.
about the Company through the Internal and risks of its operations, and
Communications Unit, which publishes implementing long-term and The Company continues to place a
information on our website and intranet. sustainable solutions towards premium on its human capital
mitigating impact; and development. We value the welfare of our
Retirement benefits employees and contractors and this fact
• continuously seeking innovative will ensure the improved efficiency of the
The Company operates a contributory
ways to improve its health, safety business and help to maintain its
pension scheme for its employees in
and environmental performance. strategic advantage over its competition.
Nigeria, in line with the provisions of the
Pension Reform Act 2014. Safety and environment workshops are During 2018, employees attended
organised with a broad focus on good numerous local and international training
The scheme is funded through employees’
housekeeping to ensure a good and and development programmes to improve
and employer’s contributions in the ratio
safe working environment. their HSSE knowledge and skills.
of 8% and 10% of the total emoluments
of the employee, as prescribed by the Act. Fire prevention and firefighting
equipment is installed in strategic
locations in the offices and plants.
Dangote Cement shareholders analysis

Number of % of Number of % of
Share range shareholders shareholders shares shares
1 to 1,000 29,873 73.75 10,264,718 0.06

1,001 to 5,000 7,989 19.72 15,883,910 0.09
5,001 to 10,000 1,157 2.86 8,200,999 0.05
10,001 to 50,000 983 2.43 20,163,69 5 0.12
50,001 to 100,000 152 0.38 10,860,710 0.06
100,001 to 500,000 180 0.44 43,219,739 0.25
500,001 to 1,000,000 52 0.13 39,448,515 0.23
1,000,001 to 5,000,000 74 0.18 176,627,974 1.04
5,000,001 to 10,000,000 16 0.04 122,594,075 0.72
10,000,001 to 100,000,000,000 29 0.07 16,593,243,069 97.38
Total 40,505 100.00 17,040,507,404 100.00

01 02 03 04
Training and development In 2018, the Company launched All issued shares are fully paid and
Dangote Cement is committed to the two new products called Falcon and details of the share capital history are
support of staff development for all staff. BlocMaster into the Nigerian market set out on page 200. No additional
The key purpose is to facilitate personal to expand its product line for the shares were issued in 2018.
and professional development enabling benefit of customers.
individuals and groups to achieve their
Falcon is a 32.5-grade cement for less Auditors
full potential at work. In the case of each of the persons who
demanding applications such as mortaring
and low-rise buildings, while BlocMaster are Directors of the Company at the
The Company recognises that its
is a premium, rapid-setting 42.5R product, date when this report was approved:
success is linked to the contribution,
commitment and achievements of which was the result of extensive research • so far as each of the Directors is
individual members of staff, working and customer feedback. aware, there is no relevant material
individually and in teams or groups. information of which the Company’s
Capital structure auditors are unaware; and
Training programmes are offered at the
The Company has one class of ordinary
Dangote Academy for staff across the • each of the Directors has taken all
shares, which reflect the total value of
Group, with facilitation from professionals the steps that he reasonably ought
the share capital. Each ordinary share
and other training experts. In addition to to have taken as a Director to make
carries the right to one vote at the
skill acquisition, the training programmes himself aware of any relevant material
Company’s Annual General Meeting.
enable staff to develop the interpersonal information and to establish that the
skills needed to succeed in the workplace. The percentage shareholding and transfer Company’s auditors are aware of
The courses are designed to help staff in of shares are governed by the Company’s that information.
the performance of their designated roles Articles of Association and relevant
A resolution will be proposed authorising
and to help them to fulfil their potential. regulation. There are no restrictions with
the Directors to fix the remuneration of
respect thereto. The Articles of Association
the auditors for the 2019 financial year.
Identification of staff may be amended by special resolution
development needs approved by the shareholders. In compliance with the provisions of the
An assessment of the skills of individuals, Securities and Exchange Commission
when they are appointed to a new role, Substantial interest in shares (SEC) Code of Corporate Governance
will lead naturally to the identification of As at 31st December 2018 and also 2011, the Company puts the external
their need for training and development, at the date of this report, only Dangote audit contract out to tender at least
related to duties that they are to perform. Industries Limited held more than 5% of every ten years.
the issued share capital of the Company.
In addition, staff training and development
Details of shareholdings are provided in
needs may be identified in a variety of
the table on the opposite page:
ways, e.g. by skills audit, by feedback
and by staff performance appraisal. 31st December 2018
Shareholder: Mahmud Kazaure
It is our policy that all staff have at least one Group Chief Legal Counsel
Dangote Industries Limited
annual performance review a year with and Company Secretary
their head of department or line manager, Number of ordinary shares: 25th February 2019
at which time, training and development 14,494,407,583
needs will be assessed and ways of
% of issued ordinary shares:
meeting these will be identified, and an
85.06%
appropriate timescale agreed.
25th February 2019
Post balance sheet events Shareholder:
No material event took place between Dangote Industries Limited
31st December 2018 and the date on Number of ordinary shares:
which these accounts were signed. 14,500,315,501
Research and innovation % of issued ordinary shares:

With rapid urbanisation and population 85.1%
growth in Africa, the Company realises All shares other than shares held by
that meeting housing and infrastructure Dangote Industries Limited (85.1%) and
needs will be a challenge. Aliko Dangote (0.16%) are considered
We are constantly looking for new to be free float shares. Aliko Dangote
product solutions that will respond is the ultimate owner of Dangote
to these construction challenges. Industries Limited.

Nomination Committee report
Introduction
Aliko Dangote GCON The Nomination Committee was
Chairman established in 2014 to assist the Board
in discharging its responsibilities in
relation to the composition of, and
matters relating to, the Board and
Senior Executive team.
In 2018, the members of the Nomination
Committee were Aliko Dangote (Chair of
the Committee), Ernest Ebi, Emmanuel
Ikazoboh, Fidelis Madavo and Olusegun
Olusanya. The Committee met twice
during the year under review and the
Role of the Committee record of members’ attendance is
The Nomination Committee helps the Board identify, select, recruit and shown in the table to the left.
train suitable Directors and Senior Executives to drive the Company’s
Biographical details of each member
strategy and business operations.
of the Committee, including relevant
qualification and experience, are set out
Meetings attended on pages 88 to 90 of this Annual Report.
Members (eligible to attend)
The Company Secretary is also the
Aliko Dangote (Chairman) Secretary to the Nomination Committee.
Ernest Ebi
Terms of reference
Olusegun Olusanya* The role of the Committee is to assist
the Board to ensure that:
Emmanuel Ikazoboh
• the Board has the appropriate
Fidelis Madavo composition for it to effectively
execute its duties;
Attended Not attended

• Directors are appointed through
* Resigned 31st December 2018.
a formal process;
• induction and ongoing training
and development of Directors
take place; and
• formal succession plans for the
Board, Chief Executive Officer and
Senior Management team are in place.
Responsibilities
The Committee must perform all the
functions necessary to fulfil its role as
stated above and including the following:
• ensure the establishment of a
formal process for the appointment
of Directors, including: identification
of suitable members of the Board;
performance of reference and
background checks of candidates
prior to nomination; formalising the
appointment of Directors through
an agreement between the Company
and the Director; oversee the
development of a formal induction
programme for new Directors;

01 02 03 04
Committee activities during 2018

Key matters considered Committee actions
Appointment of Chief • The Committee considered, and resolved to recommend to the Board
Executive Officer for approval, the appointment of Engineer Joseph Makoju, previously acting
Chief Executive, as the Chief Executive of the Company.
Appointment of Independent • The Board considered and recommended the appointment of Cherie Blair
Non‑Executive Directors and Sir Michael Davis as Independent Non-Executive Directors of the Company.
and ensure that all Directors update Also, in 2018, following a thorough held several meetings in 2018, in
their skills through different search and benchmarking exercise compliance with the laws of their
programmes; of internal and external candidates, the respective operating environments.
Committee made a recommendation to
• oversee the development and
the Board in April that Cherie Blair QC Future plans
implementation of continuing
and Sir Michael Davis be appointed Going forward, the Committee is
professional development
Independent Non-Executive Directors committed to further gender diversification
programmes for Directors;
of the Company, a decision which was with a stronger representation of women
• ensure that Directors receive regular approved and ratified by the Annual on the Board. As at the end of 2018
briefings on changes in risks, laws General Meeting held on 20th June 2018. financial year, we have two women on
and the environment in which the the Board and continue to work towards
The Committee considered the Executive
Company operates; increasing the participation of women
Committee talent pipeline and scheduled
• consider the performance of Directors a series of meetings with prospective on the Board.
and take steps regarding any candidates with future senior leadership Emergency succession planning is
changes needed to ensure an appointments in mind. It also reviewed also an important area of discussion
appropriate contribution; the recommendations of the independent for the Committee. It has ensured the
external evaluation, considered Board development of a framework that clearly
• find and recommend to the Board a
Committee membership, potential conflicts identified individuals capable of covering
replacement for the Chief Executive
of interest and the independence of the key management roles on an interim
Officer, should that become
Non-Executive Directors, and reviewed basis. All these individuals then receive
necessary; and
its terms of reference. the necessary coaching to ensure they
• ensure that formal succession plans have the required skills to provide any
The Committee continued its programme
for the Board, Chief Executive Officer critical support when needed.
of succession planning. The Board takes
and Senior Management are developed
the issue of Board diversity very seriously Development for Directors and
and implemented, conducting
and believes that maintaining an appropriate high-performing individuals below Board
searches for suitable replacements
balance of skills, knowledge, experience level has been an essential area of focus.
when necessary.
and backgrounds is key to its Coaching and mentoring is provided
effective performance. to develop and enhance specific skill
Committee activities in 2018
Gender diversity is an important element sets, and the Committee believes the
The Committee keeps under review
of this mix. It was in furtherance of its benefits of this approach are critical for
the leadership needs of the Company
diversity objectives that it recommended developing our own talent for the future.
and identifies and nominates suitable
candidates for the Board’s approval, to the appointment of Cherie Blair.
fill vacancies when they arise. In addition, The Committee monitors
it makes recommendations on who should the composition of the Boards of
be appointed to fill such vacancies. Dangote Cement and its Pan-African Aliko Dangote
At the start of 2018, the Committee, subsidiaries to ensure that they are Chairman of the Nomination Committee
after considering the contribution and comprised of individuals with the skills 25th February 2019
performance of the Acting Group and qualifications necessary to
Managing Director of the Company, effectively direct the affairs of the
recommended that the Board formally Company. The Committee also monitors
appoint Joseph Makoju as the Group subsidiary governance to ensure that
Managing Director/Chief Executive subsidiaries are run in line with best
Officer of the Company. practices. In that regard, the subsidiaries

Audit, Compliance and Risk Management Committee report
Introduction
Ernest Ebi MFR The Board is ultimately accountable for
Independent the risk management process, system
Non-Executive Director of internal control and monitoring
compliance with applicable laws and
regulations. These functions have been
delegated to the Audit, Compliance and
Risk Management Committee, which
exercises oversight.
I am pleased to present to you the
2018 report of the Audit, Compliance
and Risk Management Committee.
It is a standing Committee of the Board
Role of the Committee
with powers of information, assessment
The Audit, Compliance and Risk Management Committee is charged
and presentation of proposals to the
with oversight of internal control, compliance and risk management,
Board of Directors within the scope of
working with the respective internal functions.
its functions in accordance with the
Company’s corporate governance
Meetings attended system and as more particularly set
forth in the Committee Charter.
Ernest Ebi (Chairman) The Board has satisfied itself that all
Olakunle Alake the members of the Committee have
substantial education, experience and
Sani Dangote Ⅹ Ⅹ Ⅹ knowledge of accounting, risk and
corporate financial management, legal,
Devakumar Edwin governance and compliance and internal
control management.
Emmanuel Ikazoboh
This complies with and surpasses the
Fidelis Madavo requirement of Section 30.2 of the SEC
Code, which requires that at least one
Olusegun Olusanya* member of the Committee should have
recent and relevant financial experience.
Dorothy Ufot
Composition and membership

Attended Ⅹ
Medical absence

Not attended
In 2018, the Committee comprised
* Resigned 31st December 2018. four Non‑Executive Directors and four
Independent Non-Executive Directors.
As an Independent Non-Executive
Director, I serve as the Chairman of
the Committee. Details of members
as well as meeting attendance is
shown in the table to the left.
The office of Secretary of the Committee
is held by the Company Secretary. This
enables a fluid and effective relationship
with the various units of the Group that
must cooperate with or provide
information to the Committee.

01 02 03 04

Internal Audit
Committee actions
• The Committee reviewed and approved the 2018 Internal Audit Plan as well as resourcing, manpower, training and
development requests.
• The Committee recommended the establishment of Board Audit, Risk and Compliance Committees in countries where
none exist.
• The Committee reviewed and made recommendations on the implementation of adequate control environments in the
companies within the Group.
• The Committee received reports on whistle blowing and fraud investigations and made appropriate recommendations
to the Board for approval.
Compliance
Committee actions
• The Committee reviewed and approved the compliance appraisal plan for the financial year, and expressed satisfaction
with the implementation of the previous year’s plan.
• The Committee reviewed the proposal of management, and approved the implementation of automated regulatory
compliance systems that will enhance compliance within the Group.
• The Committee reviewed the report of the Company’s compliance with applicable rules and regulations and noted that
the Company had recently been awarded “The Most Compliant Company Award” by the Nigerian Stock Exchange.
• The Committee, in compliance with the law, approved an independent review of the Internal Audit function, reviewed
the report upon completion and made recommendations for implementation of actions to improve performance.
• The Committee reviewed the statutory and regulatory returns made by the Company and its subsidiaries.
• The Committee received reports on the status of compliance of the subsidiary companies within the Group with the
laws applicable in their respective operating environments.
• The Committee reviewed the status of subsidiary companies’ Board meetings and made recommendations to the
Board as appropriate.
Risk management
Committee actions
• The Committee appraised the review of supplier contracts by management and observed the settlement of related tax
issues arising therefrom.
• The Committee reviewed the operational, insurance and credit risk management framework presented by the Chief Risk
Officer and was satisfied with measures put in place to prevent and mitigate risks by carrying all stakeholders along.
• The Committee reviewed the human resourcing of the Risk department and noted the progress made in filling vacant
positions across the Group.
• The Committee considered the relative benefits of constructing a power plant in one of its subsidiary companies and
resolved to recommend the same to the Board for approval.
• The Committee reviewed and approved several initiatives that will enhance the efficiency and effectiveness of the
transport management system.
• The Committee directed management to take necessary steps towards recovery of funds due from customers.


continued
Composition and membership • reviewing and ensuring that proper Risks identified are managed systematically
continued liaison and cooperation exists to ensure proper control of all existing
As provided in its charter, the Committee between statutory auditors and and emerging risks to which the
meets as many times as it is called to, the Group Internal Audit function; Company is exposed.
meeting by resolution of the Committee • recommending to the Board for A holistic and fit-for-purpose methodology
itself or of its Chairman, and at least four approval the Company’s risk appetite is adopted to ensure all types of risks
times a year. The Committee met four and risk limits as well as changes to emanating from the Company’s strategic,
times in 2018. Some members of our the Company’s appetite for risk; internal and external activities are captured.
Senior and Executive Management teams
were invited to meetings to provide • approving the Company’s risk For proper analysis, risk incidents are
information and updates on agreed tasks framework and policies, including the mainly grouped under business and
and directives given by the Committee organisation and governance of risk strategic risk, operational risk, financial
from previous meetings. These include management; risk, market risk, liquidity risk, business
the Group CEO, Group CFO, Head of continuity risk and reputational risk.
• oversight of the execution of risk
Internal Audit, Group Chief Risk Officer, management including identification, Our risk appetite statements define the
Chief Legal Officer, Company Secretary, analysis and risk mitigation, within the quantum of risk the Group is willing to
Deputy Company Secretary and scope of the risk appetite (approved accept in pursuit of its strategic goals.
Compliance Manager. by the Board);
The Group defines risks as events that
Roles and responsibilities • reviewing, with the Company’s Legal portend any consequence of uncertainty
The roles and responsibilities of the Counsel, any legal matter that could in the attainment of its business objectives,
Committee are set out in its Charter, which have significant impact on the which may result in an opportunity or
is reviewed periodically by the Committee Company’s financial statements a threat.
taking into account relevant legislation and operations;
The outlook for effective risk management
and recommended best practice. • overseeing the Company’s involves proper analysis of the Group’s
The Committee has oversight over the compliance programme and business activities to identify short,
Audit, Compliance and Risk Management adherence to the Code of Business medium and long-term risks.
functions and receives separate reports Ethics; and
Identified risks are then assessed,
and updates from each of these functions. • establishing a whistle-blowing measured and controlled with close
Each quarter, the Committee submits to mechanism and monitor monitoring of the implementation of
the Board of Directors a report of activities implementation. recommended controls by the Group’s
of the Committee, which considers the Risk Management department. Insurance
The activities of the Risk Management,
activities for the review period, evaluation solutions are instituted as a key method
Compliance and Audit departments
of the adequacy of its Charter and of risk treatment.
respectively during 2018 are
an assessment of the Committee’s described below. The risk landscape of Dangote Cement
performance; the report is prepared is derived through thorough risk
in accordance with its Charter. Risk management assessments and deployment of other
The Committee’s main Introduction risk identification tools that cover all
responsibilities include: The Risk Management function of strategic, internal and external business
Dangote Cement supports the Board activities of the Group.
• oversight of the activities of the Group of Directors, the Executive Committee
Internal Audit function including the These risk management tools are utilised
and management of all subsidiaries in in all subsidiaries of the Group and at all
appointment and evaluation of the the Group in identifying, analysing and
Group Head of Internal Audit, approval levels in the Company.
controlling the Company’s overall
of the Internal Audit Plan, review of risk exposure. All mitigating actions implemented are
Internal Audit reports and safeguarding duly approved by relevant business
the independence of the Internal It does this through its bespoke owners and approving authorities.
Audit function; Enterprise Risk Management Framework,
which is governed by the Board and
• reviewing the scope, nature and driven by a specialist team that takes a
effectiveness of the Internal Audit formalised approach to risk management
function and recommending across all our operations using well-
proposed changes to the Board; established methodologies and tools.

01 02 03 04
% FX requirements funded through export proceeds
Description Possible states Achieved in 2018
This key risk indicator tracks and reports how much of our Export proceeds are >31% of Export proceeds
FX requirements are being funded by the proceeds of export FX budget averaged 40% of FX
sales. This is helpful because currency restrictions in Nigeria budget in 2018
make it difficult to source FX for some business activities.
Export proceeds are
16%–30% of FX budget
Export proceeds are <16% of

FX budget
SAP and network downtime
Description Possible states Achieved in 2018
We depend on information technology systems to drive our SAP downtime SAP downtime averaged
business. SAP is deployed to provide a holistic and integrated <11.5 hours per month 10.7 hours per month
data capture, processing and reporting in areas of the business
Network availability ≥98% Network availability
such as inventory planning and management, sales and
averaged 98.5%
marketing, finance, credit administration and control, and
human resources planning. For this reason, the downtime
for SAP availability is closely monitored and reported to SAP downtime
avoid prolonged disruption of business activities. 11.5–35 hours per month
In addition, network availability is also closely monitored Network availability 96%–98%

as email services are the main channel of communication
across the business. SAP downtime
>35 hours per month
Network availability ≤95%
% truck availability
Risk Description Achievement
Timely delivery of goods is a key customer service delivery Truck availability is ≥72%
value driver as it not only ensures that customers get goods
as and when required but also enables us to generate additional Truck availability is 52%–72% Truck availability
income through our haulage services. Dangote Cement Plc averaged 57.8%
Nigeria has a fleet of more than 7,000 trucks servicing both
its domestic and export customers. The availability of trucks
Truck availability is <52%
for delivery is closely monitored so we can be confident we
can make deliveries on time.
Low risk Medium risk High risk


continued
Risk review of 2018 The Directors have assessed the The scenarios above are hypothetical
At each of its meetings during the year, prospects of Dangote Cement over the and purposefully severe for creating
the Committee reviewed detailed risk next three years, considering our current outcomes that can threaten the viability
management reports on all risk exposures business performance and principal of the Group. In the case of these
identified or anticipated organisation wide. risk exposures. A three-year viability scenarios arising, it was agreed that various
The report to the Committee focused on assessment period was considered options are available to the Group for
the impact of the challenging global and appropriate for the following reasons: maintaining liquidity required to continue
local business environment dynamics operations. These options include:
1. Dangote Cement has a
and policy changes affecting countries
one-year budget; 1. earlier access to new external funding;
in which we operate in with key decisions
made to adequately mitigate envisaged 2. it has a three-year strategic plan; and 2. embracing more radical short-term
medium and high risks. The Committee cost reduction actions; and
3. it has a longer-term life-of-asset outlook.
was thus able to constantly review the
3. reducing capital expenditures.
efficacy and applicability of its risk We have publicly stated our view that
management framework. while commodity prices remain volatile, None of these actions are envisaged to
our short-term outlook is optimistic. be a likely risk factor and were therefore not
The risk management report captures
Price and exchange rate volatility results assumed in our current scenario analysis.
key risks and related mitigation, including
in variability in plans and budgets. A
those set out in the principal risks section Given the thorough consideration of all
three-year period strikes an appropriate
of this Annual Report. likely risk factors considered in this scenario
balance between long-term and
analysis, Dangote Cement’s current
Based on this focused oversight on the short-term influences on performance.
business performance and principal risk
Group’s risk management implementation
This viability assessment considered, exposures, the Directors have a reasonable
during the year, the Committee made
amongst other things, Dangote Cement’s expectation that Dangote Cement will be
recommendations to the Board on the
product pricing scenarios, the latest funding able to continue in operations and meet
nature and extent of the risks it was willing
and liquidity situation, the long-tenured all its liabilities as they fall due. The risk
to take to achieve its strategic goals.
maturity profile of Dangote Cement’s that the Group would become insolvent
Some key decisions reached by the debt portfolio, and the maximum debt during this three-year timeframe was
Committee are outlined below: value maturing in any financial year. considered remote.
Operational risk: the Committee reviewed Other considerations include the
Group-level risk profile, the mitigating Compliance
principal operational risks, mitigating
actions available should key risks The Board monitors the Company’s
actions, tolerance limits through the key
materialise, and the regular Board compliance with applicable laws and
risk indicator dashboard and approved
strategy and portfolio discussions non-binding rules and standards. The
remedial actions required.
which address the range of possible responsibility for this has been delegated
Credit risk: the Committee gave directive to the Committee.
risk outcomes and the reserve life of
to develop relevant policies for ensuring
Dangote Cement’s production assets. Dangote Cement recognises that every
optimal mix in the ratio of secured
The Directors’ assessment also considered company is one bad decision or one
exposures to clean credit exposures.
additional stress testing of the balance “bad employee” away from potential
Transport risk: the Committee approved lawsuits and penalties, which bring to
sheet against two hypothetical significant
the review of transport strategy, process, the fore the vulnerability of businesses.
risk events, namely:
structure and technology.
1. a complete shutdown of one Corporate compliance, or more accurately
Audit and risk relationship: the the risk of non-compliance, has become
of our biggest plants due to a fire
Committee reviewed the role of the a major concern over the past decade,
outbreak; and
Risk Management and Audit functions especially for global companies such as
as they pertain to risk assessment and 2. a complete shutdown of one ours with operations in many different
their input for preparing annual internal of our biggest plants due to a countries and jurisdictions. When a
audit plans. low-price environment. practice commonly accepted in one
Other assumptions included the alignment country could be a serious criminal or
Business viability statement of production, capital expenditure and civil offence in another, it is essential that
The Board carried out a robust assessment operating expenditure with three-year this is understood and managed.
of Dangote Cement’s principal risks, planned forecasts and the alignment of The Compliance function is crucial for
including those that could threaten its prices with the cyclical low-price case the timely detection and prediction of
business model, future performance, used in the control stress case for compliance violations as well as for the
solvency or liquidity. balance sheet testing. provision of reactive and proactive

01 02 03 04
countermeasures on compliance others seeks to establish and implement • report on compliance matters that
violations. In recent years, monitoring compliance management practices that warrant the attention of the Subsidiary
the compliance of business processes contribute to sound and responsible Management Board; such reports
with relevant regulations, processes business practices and ensure the integrity must detail any risk tolerance levels
and rules has become a major focus. of the products and services delivered. that were exceeded and highlight any
The Compliance function will monitor unacceptable business practices;
Objectives of the
and identify possible violations and
Compliance function • monitor progress of compliance
predict future violations in a way that will
• embed and encourage compliance with risk mitigating actions and other
prevent sanctions being imposed.
laws, regulations, business principles compliance risk management
The Company recognises that effective and rules of conduct, and establish issues until they are resolved;
compliance management is vital for good business practices in every aspect
• submit an annual Compliance
sustainable and profitable growth. It of the organisation (e.g. governance,
Appraisal Plan (CAP) to the Board
is a very important contributor to the strategy, people, processes, policies,
Audit, Compliance and Risk
protection of the Group’s integrity and culture and communication);
Management Committee for review
reputation, and helps to build trust with
• establish and maintain effective and approval and periodically update
all stakeholders.
compliance and control systems, the CAP as necessary;
The Committee reviews reports received including compliance risk assessment,
• work with the process owners to
from the regulators and evaluates the mitigation, monitoring and reporting;
document an Annual Monitoring Plan;
nature and effectiveness of action plans
• provide timely advice to the
implemented to address identified • create a process including tools for
organisation on relevant changes
regulatory compliance issues. tracking and managing actions;
in the compliance environment;
The Compliance function is guided by • create a process including tools for
• promote integrity of the organisation,
the Committee Charter, which amongst the recording, reporting and managing
its businesses and its employees;
of compliance issues and incidents;
• incorporate lessons learnt into the
components and activities of the
Compliance Programme and
Annual Plan;
• ensure resolution of, or escalation to,
the Subsidiary Management Board,
the Executive Management Team
and the Board Audit, Compliance and
Risk Management Committee on
unaddressed or overdue items;
• institute internal arrangements to
ensure that all statutory and
governance duties are adequately
discharged in a timely manner;
• coordinate the provision of information
to regulatory organisations, ensuring
such information is timely and
appropriate and presents an effective
image of the Company;
• ensure compliance with all corporate
governance requirements and rules
of appropriate regulatory authorities,
particularly the SEC, NSE and
CAC; and
• ensure development, review,
dissemination and communication
of all governance policies and
processes required by the regulators.


continued
Compliance appraisal Internal Audit The country Internal Audit functions are
The Compliance function is executed The Internal Audit function is responsible functionally accountable to local Senior
through periodic appraisals that consist for providing assurance to Management, Regional Heads of Internal Audit and
of one or all of the following methods: the Committee and the Board on the administratively to the Country Managers/
adequacy and effectiveness of risk Managing Directors/Managers.
• scheduled visits to the operating plants;
management, governance and internal
They also have direct access and
• liaison with regulators, agencies control systems in the Company.
accountability to local audit committees.
and other consultants;
The Board has documented the
The Internal Audit function’s approach to
• follow-up correspondence by authority, scope, accountability and
its activities is centred on the Company’s
email and telephone; and responsibility of the Internal Audit
Enterprise Risk Management (ERM)
function in the Internal Audit Charter.
• constant engagement with the local Framework and a risk-based audit
compliance teams, the Subsidiary The Charter provides guidance to the approach, both of which strengthen
Management Boards and other Internal Audit function and its provisions and complement how we undertake
process owners. are adhered to strictly by both the risk management at Dangote Cement.
Audit, Compliance and Risk
During these appraisals, one-on-one This approach provides assurance that
Management Committee and the
meetings are held with the management of the processes that manage risks to a
Internal Audit function.
the subsidiary companies or the operating level considered acceptable by the
plants with a view to understanding their Internal Audit operates independently Board are working effectively and
operational challenges and offering of Management and has full access to efficiently, whilst focusing on key
applicable solutions. all functions, records, property and processes and controls.
personnel in the Group.
The Group Internal Audit function uses a
Policy formulation Dangote Cement’s Internal Audit standardised, Group-wide internal audit
Policy formulation, review and function consists of the Group Internal methodology, which is in compliance
implementation is an integral part of Audit team, led by the Group Head of with the International Standards for the
the Compliance function. Internal Audit, and regional/country audit Professional Practice of Internal Auditing
As a manufacturing and production functions that operate in each of the of the Institute of Internal Auditors.
company, Dangote Cement is governed Company’s principal areas of business
It operates a formal quality assurance
by various laws and regulations. throughout its operations across Africa.
and effectiveness programme.
An important way to ensure compliance The Internal Audit function is structured
Following a risk-based approach, the
with these laws is through the formulation along three regions to ensure an
Internal Audit team presents the annual
of policies that set guidelines on how the appropriate span of control.
Internal Audit Plan for the approval by
Company and its Directors and The regions oversee various countries the Board Audit Committee.
employees are to act in any given as follows:
situation. The plan sets out the scope of work to
• Nigeria Region, comprising the be performed over a period and also
As at 25th February 2019, Dangote three plants located at Obajana, defines the approximate resources
Cement has 22 Board and governance Ibese and Gboko; necessary to accomplish the scope
policies. of the Internal Audit activities.
• West and Central Africa Region,
Additionally, we have several internal comprising Cameroon, Ghana, Internal Audit reviews, based on the
policies and charters that regulate all Senegal, Congo, Sierra Leone and approved plan for the year, generally
facets of the Company’s activities, several export destinations notably include provision of assurance over
ranging from production, sales, finance, Togo and Niger; and financial, operational, IT and transformation
human resources, communications, programme activities, which are performed
internal controls, corporate social • South and Eastern African Region,
by teams of qualified and experienced
responsibility functions, etc. comprising Tanzania, Zambia,
employees, as well as third parties
Ethiopia and South Africa.
Details of the Board and governance appointed to assist from time to time.
policies can be found in the appendix The regional and country functions are
The Group Head of Internal Audit,
on pages 202 and 203. centrally directed by the Group Head of
who reports to this Committee and
Internal Audit.
administratively to the Group CEO, has
direct right of access to, and regular

01 02 03 04
meetings with, me and prepares formal The Anti-Fraud Committee is made up Of cases investigated during 2018,
summary reports on the consolidated of the following members: 70% have been closed and 30% are
activities and key findings of the Group’s still ongoing.
• Chief Executive Officer;
Internal Audit team.
• Chief Financial Officer; Focus for 2019
The Committee monitors and reviews
the effectiveness of the Group Internal • Chief Legal Officer; The Committee will continue to
Audit function on an ongoing basis. discharge its function in a manner that
• Head of Internal Audit; will ensure that the Company’s key risks
Internal Audit underwent an external
quality assurance review during 2018 • Chief Human Resources Officer; and are recognised, appropriate controls are
in line with Section 31.14 of the SEC Code. deployed and compliance to rules and
• Chief Risk Officer. regulations in the operating environment
The Committee reviews the Group’s are assured.
Whistle-blowing mechanism
All employees and stakeholders have whistle-blowing arrangements each year
the opportunity to make confidential to assess whether they remain effective,
disclosures about suspected impropriety is notified of all material disclosures
or wrongdoing. made and receives reports on the results
of investigations and actions taken. Ernest Ebi
The Anti-Fraud Committee decides Chairman of the Audit, Compliance
on the appropriate method and level The Internal Audit function performs and Risk Management Committee
of investigation. necessary investigations on relevant 25th February 2019
items, recommends sanctions in line
with Dangote Cement’s Sanction Grid
and provides recommendations for
strengthening anti-fraud controls.

Finance and General Purpose Committee report
Introduction
Olusegun Olusanya* I am pleased to introduce the report
Independent of the Finance and General Purpose
Non-Executive Director Committee for the 2018 financial year
under review. We have continued to
maintain the highest standards of
governance, while striving to ensure
of the Company’s financial reporting efficiency amidst the challenges in our
and disclosure. It also assumes operating environment. Over the
oversight following pages I will provide an
overview of the Committee’s
responsibilities and activities and
describe the significant matters it
considered during the year.
Role of the Committee
The Finance and General Purpose Committee oversees all matters As the Finance and General Purpose
relating to the Company’s financial reporting and disclosure. Committee (FGPC), we assist the Board
It also assumes oversight of its financial policies and financial strategy, in fulfilling its oversight responsibilities in
potential corporate actions such as fund raising or M&A, as well areas such as the integrity of financial
as its arrangements for funding, resourcing and staffing. reporting, management of internal
controls, treasury, investments, financial
Meetings attended risks, capital structure and restructuring,
corporate finance strategy and activities
Olusegun Olusanya* (Chairman) and mergers and acquisitions and other
related matters.
Olakunle Alake
The Committee receives its insight into
Sani Dangote Ⅹ Ⅹ Ⅹ Ⅹ the challenges and goals of the Company
from the financial and business targets
Ernest Ebi
set by the Board. It reviews how the
Devakumar Edwin Company progresses towards achieving
those targets, receiving regular updates
Emmanuel Ikazoboh
from Executive and Senior Management
Fidelis Madavo staff on operational and financial issues
across the Group.
Douraid Zaghouani
These reports give the Committee
an understanding of the risk factors
Attended Ⅹ Medical absence Not attended
involved as well as the assurance
* Resigned 31st December 2018. and processes to mitigate them.
Roles and responsibilities

The Committee’s main roles and
responsibilities are to assist the Board
in fulfilling its oversight responsibilities
regarding the following:
• to advise the Board on matters
pertaining to the Company’s capital
structure and the corporate finance
strategy of the Company, including
the issuance of equity and debt
securities, general financing plans,
debt ratings, share repurchase
philosophy and strategy, share
redemption and purchasing activities,
and the Company’s dividend policy;

01 02 03 04

Review of financial statements • The Committee reviewed, and recommended to the Board for approval, the
2017 audited financial statements.
• Reviewed and recommended to the Board for approval, the unaudited
quarterly financial statements.
• Recommended to the Board for approval the submission of financial
statements to relevant regulatory authorities.
Budget • Reviewed the annual Budget submitted by management, with focus on key
indices such as increased sales targets, and recommended the same to the
Board for approval.
• Reviewed the quarterly and full year financial performance of the Group
against the approved Budget.
Capital structure and financing • Reviewed status of loans to subsidiary companies and made
recommendations to the Board.
• Reviewed the financial status and debt profile of subsidiaries, and
considered refinancing and repayment of loans.
• Reviewed the loan portfolio of the Company and made appropriate
recommendations to the Board for approval.
• Deliberated the merits of capital raising through Naira and Euro bonds, and
made recommendations to the Board for approval.
Compliance • Advised on the registration of subsidiary loans with the various regulatory
authorities in the Pan-African subsidiaries in accordance with the law.
• Considered the effect of regulatory changes on the working capital of
the subsidiaries.
Investor relations • Reviewed and recommended the 2019 Investor Relations calendar to the
Board for approval.
Dividend • Deliberated on the various scenarios for the payment of the dividend and
made recommendations to the Board for the 2018 financial year.
External audit • The Committee considered the report of the external Auditors together with
the Management Letter, outstanding issues, judgements and estimates,
significant audit risks, management and internal control systems.
Investments • Reviewed and made recommendations to the Board on matters related
to major investments, acquisitions, divestments, joint ventures and
related transactions.

Finance and General Purpose Committee report continued
Roles and responsibilities As Chairman of the Committee, I –– any major issues regarding
continued regularly hold private meetings with the accounting principles and financial
• to review, in consultation with Group Chief Financial Officer, members statement presentations, including
the independent auditors, the of the Senior Management team and the any significant changes in the
integrity of the Company’s internal lead audit partners of our auditors, prior Company’s selection or application
and external financial reporting to the Committee meeting to better of accounting principles;
processes and controls; understand issues and any areas of
–– any major issues as to the
concern and to allow sufficient time for
• to review and recommend to adequacy of the Company’s
meaningful discussion in the Committee
the Board on matters pertaining internal controls and any special
meeting itself.
to Group treasury operations, audit steps adopted in light of
investment strategies, banking and material control deficiencies; and
Terms of reference:
cash management arrangements –– any other material written
Finance and Treasury
and financial risk management; and communications between
• Review and recommend to the Board
• to review thoroughly and make on matters pertaining to the capital the independent auditors and
recommendations to the Board structure and corporate finance the Company’s management.
on matters pertaining to major strategy of the Company, including, • Review and recommend to the Board
investments, mergers, acquisitions, without limitation: the issuance of on matters pertaining to global
divestitures, joint ventures or similar equity and debt securities; financing treasury operations, investment
transactions and the policies and plans generally; debt ratings; share strategies, banking and cash
processes of the Company repurchase philosophy and strategy; management arrangements and
related thereto. share redemption and purchase financial risk management (interest
activities; and dividend policy. rate, foreign exchange, etc.).
Composition and qualification • Review, in consultation with the
of the Committee Corporate transactions
independent auditors and the internal • Review and recommend to the
The Committee is comprised of eight auditors, the integrity of the Company’s
members, with five Non-Executive Board on matters pertaining to major
internal and external financial reporting investments, acquisitions, divestitures,
Directors and three Independent processes and controls. In this regard,
Non-Executive Directors. joint ventures or similar transactions
the Committee should obtain and and the policies and processes of the
Biographical details of each member discuss with management and the Company related thereto.
of the Committee, including relevant independent auditors all reports from
qualifications and experience, are set management and the independent Risk management
out pages 88 to 90 of this report. auditors regarding: • Discuss quarterly with the Chairman
of the Audit Committee the risk
As part of the annual review of the –– all critical accounting policies assessment process undertaken
effectiveness of the Committee, the and practices to be used by by the Committee with respect
Board has considered the qualifications, the Company; to the financial risks overseen by
expertise and experience of members –– analyses prepared by management the Committee.
and is satisfied that the Committee and/or the independent auditors
members bring a wide range and depth Reporting
setting forth significant financial • Report regularly to the Board:
of financial, accounting practices, risk reporting issues and judgements
management and commercial made in connection with the –– following all meetings
experience across various industries, preparation of the financial of the Committee; and
and that they will effectively discharge statements, including all alternative
their duties. –– with respect to such other matters
treatments of financial information that are relevant to the Committee’s
Some members of Senior and Executive within generally accepted accounting discharge of its responsibilities.
Management are invited to attend principles that have been discussed
meetings to provide any necessary with the Company’s management,
information, as well as updates on the ramifications of the use of
agreed tasks and directives requested the alternative disclosures and
by the Committee in previous meetings. treatments, and the treatment
preferred by the independent
auditors;

01 02 03 04
Financial reporting matters in 2018 Committee activities in 2018 It identified the current national threat level
The Committee reviewed the financial Key matters considered by the and satisfied itself as to the Company’s
reports submitted by management Committee in 2018 are detailed in the level of preparedness and areas for
during its meetings and assessed table on page 107. improvement for the 2019 financial year.
whether suitable accounting policies and
Other matters considered by the Having reviewed the composition
standards were adopted and whether
Committee included: and activities of the Committee, I am
the management team made the
satisfied that the Committee, working
appropriate estimates and judgements • pricing strategy and impact on
closely with Senior Management and
related to the Group’s performance. revenue and profits;
the external auditors, has carried out
The Committee also reviewed the • tax impact and tax exemption status its duties effectively and to a high
Group’s quarterly financial results, of entities within the Group, and total standard in 2018.
relevant disclosures, external auditors’ tax liability of the Group;
Going forward, we will continue to focus
reports, financial disclosures in the
• review of the carrying amount of on the effectiveness of the finance function
Annual Report and reports by external
Group assets including any potential and ensure adequate protection of the
auditors that highlighted any issues
impairment loss to be recognised Company’s financial assets.
arising from the audit.
during the year;
The specific areas of audit and
• benefits of different types of bond
accounting matters reviewed by the
issuance; and
Committee include:
• review of the currency hedging Olusegun Olusanya
• critical accounting judgements and
strategies, FX exposures and Former Chairman of the Finance and
estimates that affect the reported
management-proposed actions General Purpose Committee
amount of assets, liabilities, revenue
to mitigate FX exposures and their 25th February 2019
and expenses;
impacts on the business.
• appropriateness and consistency
The Committee also deliberated and
of application of accounting policies
recommended the financial strategy
and their compliance with
and areas of focus to the Board, and
accounting standards;
determined that it was appropriate to
• impairment testing of tangible adopt the going concern basis for the
and intangible assets; preparation of the financial statements.
• risks and associated controls over
the financial reporting process; and
• adequacy and clarity of reporting
disclosures and compliance with
applicable financial and
reporting standards.

Technical and Operations Committee report
Introduction
Fidelis Madavo The Technical and Operations Committee
Non-Executive Director of Dangote Cement assists the Board
and has an oversight function over
matters related to the construction,
expansion of capacity, maintenance
and operation of plants.
It is an independent role with accountability
to the Board. It does not assume the
functions of management, which remain
the responsibility of the Chief Executive
Officer and other Senior Executives.
Role of the Committee Composition

The Technical and Operations Committee assumes oversight of the The Committee is composed of six
technical aspects of the Company’s operations, including production, members, of whom five are Non‑Executive
health, safety and environmental matters, as well as sustainability Directors and one is an Independent
matters. It also assesses the performance of existing plants and the Non-Executive Director.
viability of proposed expansion projects.
Biographical details of each member
of the Committee, including relevant
Meetings attended qualifications and experience are set
out on pages 88 to 90 of this report.
Fidelis Madavo (Chairman) The Company Secretary is the
Secretary to the Committee.
Olakunle Alake
The Board, in furtherance of its mandate,
Abdu Dantata has assured itself that the Committee is
Ernest Ebi composed of members with the requisite
knowledge, skill set and experience to
Devakumar Edwin effectively discharge their duties.
Douraid Zaghouani Members of the Executive Management
team are always in attendance at

Attended

Not attended Committee meetings in order to provide
necessary information, support the
Committee and give status updates
on decisions from previous meetings.
Responsibilities
The Committee assists the Board in
fulfilling its oversight responsibilities
regarding the following:
• reviewing project feasibility to
determine and consider viability
of planned expansion projects in
Nigeria and elsewhere;
• reviewing the technical scope of plant
projects including risk assessment and
the Quality Management Plan and
make recommendations to the Board
as to needs or issues arising therefrom;

01 02 03 04

Key matters Committee action
Enhanced operational • The Committee received several reports on strategies to improve operational efficiency, and
efficiency resolved to recommend the same to the Board for approval.
• The Committee also reviewed management reports on operations and production
performance and made appropriate recommendations to improve efficiency.
HSSE • The Committee received reports and monitored the performance of the Company across
key indices such as health, safety, social and environment. In particular, the Committee
engaged in the following activities:
• received and reviewed the periodic HSE reports from the Nigerian plants and Pan-African
subsidiaries, and made recommendations to improve efficiencies and reduce associated risks;
• received reports on safety performance, including fatalities, lost time injury rate, causes of
accidents on the plants, impact on business activities, intervention and remedial measures;
• considered the safety initiatives of management and approved the commencement of
behaviour‑based safety training and other safety-enhancing initiatives;
• engaged experts to inspect and monitor the operational efficiency of machinery and equipment;
• approved policies in furtherance of the social objectives of the Company;
• reviewed established safety performance indicators for the plants and made
recommendations for improvement;
• received reports on safety initiatives, including a summary of safety inductions, trainings,
safety committee meetings and safety performance reports across the operating plants; and
• approved enhanced training and workshops.
Transport strategy • Received reports on transport safety in Nigeria, including details of drivers' training and
certification, orientation as well as other strategic initiatives to improve operational efficiency
and transport safety excellence:
• received management reports related to transport management and efficiency;
• measured performance of the transport fleet to contain and reduce accident rates;
• recommended approval of salary increments as well as other financial incentives to
encourage accident-free driving;
• reviewed the transport safety policies across the Group; and
• resolved on the implementation of medium and long-term strategy to optimise transport function.
Projects • The Committee received reports on greenfield and brownfield projects and deliberated on
matters concerning:
• status of construction and expected production dates;
• plans for and status of project commissioning;
• CAPEX reports on the projects; and
• related issues and challenges, and resolutions.
Sustainability • The Committee received reports on sustainability, initiatives and reporting standards, and
initiatives resolved to recommend to the Board as follows:
• develop and institutionalise a robust data gathering framework for embedding a strong
sustainability culture across all companies in the Group;
• approve roadshows, workshops and stakeholder surveys that will inform the sustainability
policy, processes, systems and culture;
• engage internal stakeholders for identification of matters considered material to them;
• expand sustainability reporting to cover subsidiaries across Africa;
• embed sustainability “thinking and doing” at all levels of governance, operations and
corporate culture – The Dangote Way; and
• adopt the sustainability initiative, implementation and global reporting indicators across the
7 Sustainability Pillars.

Technical and Operations Committee report continued
Responsibilities continued Focus for 2019

• reviewing the status of projects In 2019, the Committee will continue to
according to agreed scope, schedule, strive to discharge its mandate, and will
project milestones and KPIs, and aim to ensure that:
where there are delays or variations,
• operational efficiencies and plant
probe management to understand
optimisation initiatives are implemented
root causes and mitigate against
across operations to achieve
such in the future;
cost savings;
• reviewing safety, health and
• production targets across the Group
environmental performance
are met;
and improvement plans;
• health, safety and environment
• reviewing operational, staffing and
policies are enforced and monitored
commissioning readiness plans
across the Group;
including projects not under the
Group’s direct control; • sustainability strategy and policies are
implemented and monitored across
• monitoring the production budget,
the Group; and
standards, raw material supplies,
energy and key performance • transport and transport safety
indicators per plant; initiatives are adopted and
implemented.
• reviewing asset/plant care policy and
performance (preventative/breakdown,
unit and plant reliability/availability
and costs);
• ensuring effective technical, research Fidelis Madavo
and development programmes to Chairman of the Technical and
enable continuing innovation and Operations Committee
improvement across the Group; and 25th February 2019
• overseeing the development and
implementation of corporate social
responsibility and community
programmes in plants and business
locations where we operate in Nigeria
and throughout the rest of Africa.
The reports of the Committee are
presented to the Board after each
Committee meeting, providing the
Board with summaries of discussions
and its recommendations for the
consideration of the Board.
In the financial year ended
31st December 2018, the Committee
held four meetings. Details of meeting
dates and attendance are shown at
the beginning of this report and in
the appendix.

01 02 03 04

Remuneration and Governance Committee report
Introduction
Emmanuel Ikazoboh In this report, we provide an overview
Independent of the principles, policy and practices
Non-Executive Director regulating remuneration at Dangote
Cement Plc, with specific emphasis
on remuneration of Executive and
Non-Executive Directors and members
of the Executive Management Committee.
The information contained herein
has been approved by the Board on
recommendation of the Remuneration
and Governance Committee.
Role of the Committee Focus

The role of the Remuneration and Governance Committee is to assist Our remuneration system aims to
and advise the Board on matters related to the remuneration of the remunerate Directors and Senior
Directors and Senior Management, such that the Company is able Executives commensurately with their
to attract and retain the best talent. In addition, it has oversight of areas of activity and responsibility and
governance matters. in compliance with applicable law.
The adequate combination of non-
Meetings attended performance-related and performance-
related components of remuneration is
Emmanuel Ikazoboh (Chairman) designed to create an incentive to
Ⅹ Ⅹ Ⅹ
secure the Group’s long-term success.
Sani Dangote
The ﬁxed component of remuneration
Abdu Dantata is paid as a base salary; the variable
Ernest Ebi components are intended to reﬂect,
clearly and directly, the joint performance
Devakumar Edwin of the members of the management
Olusegun Olusanya* team as a whole, as well as the long-
term performance of the Group, taking
Dorothy Ufot cognisance of interests of various
shareholders and stakeholders.
Attended Ⅹ Medical absence Not attended
This report will explain how the
* Resigned 31st December 2018. remuneration policy is aligned with the
short-term objectives and long-term
strategy, as well as remuneration for
the financial year under review.
Our approach to remuneration

Dangote Cement has a Remuneration
Policy that regulates remuneration of
Directors and members of the Executive
Management Committee.
This policy conforms to the Company’s
strategy of rewarding people in a fair,
transparent and competitive manner,
according to their levels of performance
(against pre-determined targets), skill
set, competencies and responsibility.

01 02 03 04
The policy enforces our remuneration incorporating Executive leadership and Biographical details of each member
principles that aim to: corporate values into the performance of the Committee, including relevant
management process. This is consistent qualifications and experience, are set
• attract and retain people with
with Section 5.3 of the SEC Code. out on pages 88 to 90 of the Corporate
integrity, ability, skill and experience
Governance Report.
to deliver the Group’s strategy; Our policy also ensures that Senior
Executives’ remuneration is linked to The Company Secretary is also the
• retain the services of existing
Group and individual performance in line Secretary to the Committee.
competent Directors and Senior
with Section 5.3(d) of the SEC Code.
Management, as well as attract The Group CEO, Group CFO, Group
quality to the Company; The Remuneration and Governance Chief Human Resources Officer and
Committee has been charged with the Company Secretary are regularly
• ensure that remuneration levels
responsibility of leading the process for consulted and are in attendance at the
are fair and transparent and do
determining the remuneration of Senior Committee meetings when required to
not discriminate;
Executives and Non-Executive Directors. provide information.
• recognise and encourage exceptional
The Committee will continue to monitor
and value-adding performance; Roles and responsibilities
the Remuneration Policy’s alignment
• motivate Directors to pursue with the Group’s business priorities and The principal role of the Remuneration
and promote balance between the objectives, whilst ensuring that the and Governance Committee, in relation
short-term and long-term growth remuneration framework continues to to remuneration, is to assist the Board
of the Group while maximising motivate, reward and retain our Senior in the matters described in the table
shareholders’ returns; Management in order to deliver the on page 116.
Company’s strategy effectively. Generally, the Committee is responsible
• ensure that remuneration
arrangements are equitable, for satisfying itself, on behalf of the
transparent, well communicated Composition of the Committee Board of Directors, that the Company’s
and easily understood, aligned The Remuneration and Governance leadership development, talent planning,
with the interest of shareholders Committee consists of three Non‑Executive organisational structure and compensation
and adequately disclosed; Directors and four Independent strategies, plans, policies and practices
Non‑Executive Directors. are internally aligned and consistent
• align individual rewards with with the sustainable achievement of
the Company’s performance, This composition is in compliance with
the Company’s business objectives, the
the interests of its shareholders, Section 11.1 of the SEC Code. In
prudent management of its operations
and a prudent approach to compliance with Section 14.3 of the SEC
and risks including regulatory oversight as
risk management; and Code, only Non-Executive Directors are
required, and adherence to its processes,
involved in decisions regarding the
• promote compliance with global policies, procedures and controls.
remuneration of the Group Chief
regulatory trends and governance Executive Officer.
requirements, with an emphasis
on long-term sustainability. The SEC Code requires the Remuneration
and Governance Committee to consist
The policy defines a transparent only of Non-Executive Directors. I serve
procedure for encouraging and as the Chairman of the Committee by
stimulating enhanced performance virtue of my position as an Independent
in a way that will increase profitability Non-Executive Director.
and sustainability of the Company.
The Board has satisfied itself that
It provides challenging but achievable members of the Committee have the
goals to drive towards the vision and requisite knowledge, skill and experience
strategy of the Company, focuses on to function effectively.
increased accountability through providing
clarity around what is measured and
how (weightings against performance
categories), and emphasises the way
that business should be conducted by

Remuneration and Governance Committee report continued
Responsibilities of the Remuneration and Governance Committee

Composition and function of Board Committees
• Establish the criteria for Board and Board Committee memberships, review candidates’ qualifications and any potential
conflicts of interest, assess the contribution of current Directors in connection with their re-nomination and make recommendations
to the Board.
• Prepare a job specification for the Chairman’s position, including an assessment of time commitment required of the candidate.
• Periodically evaluate the skills, knowledge and experience required of the Board.
• Make recommendations on experience required by Board Committee members, Committee appointments and removal,
operating structure, reporting and other Committee operational matters.
Remuneration
• Make recommendations on the amount and structure of the remuneration of the Chairman and Non-Executive Directors of
the Board to ensure that remuneration is fair and competitive.
• Ensure that the Group’s Remuneration Policy and structure is fair and sufficient to attract and retain high-calibre staff to the
Group.
• Recommend to the Board the terms, conditions and remuneration of Senior Executives including performance incentives.
• Ensure proper disclosure of Directors’ remuneration to the shareholders.
• Provide input to the Annual Report of the Company in respect of Directors’ compensation.
Performance management
• Review and agree, at the beginning of the year, the key performance indicators (KPIs) for the Group CEO and Senior Executives.
• Assess performance of the Group CEO against the agreed KPIs and provide feedback thereon.
• Ratify the performance appraisal of Senior Executives on the recommendation of the Group CEO.
• Ensure that the performance and effectiveness of individual Directors, Board and Board Committees are reviewed annually.
Human resources
• Ensure that succession policies and plans exist for the positions of Chairman, Chief Executive Officer, Executive Directors
and Managing Directors of subsidiary companies.
• Periodically review and make recommendations to the Board on the Group’s organisational structure and any changes thereto.
• Periodically review and make recommendations on the Group’s key human resource policies.
• Periodically review and make recommendations on recruitment, promotion and disciplinary actions for Senior Management staff.
Governance
• Periodically recommend the preparation and adoption of the Board governance policies in line with regulatory compliance
and best practice.
• Periodically review existing policies in line with changes in the regulatory and governance environment and make
recommendations to the Board for amendments thereto.
• Ensure that the Board conducts a Board evaluation on an annual basis.
• Review the performance and effectiveness of the subsidiary company boards on an annual basis where applicable.

01 02 03 04

In addition to the activities set out in the table on the page opposite, the Remuneration and Governance Committee has
completed the performance evaluation of the Group CEO and Senior Executives for the 2018 financial year and agreed
the KPIs for 2019.
Board training • The Committee reviewed and approved the proposal of training for Directors,
recommending both local training by the Institute of Directors and international
training anchored by the McKinsey Global Institute, in order to improve the
capabilities of the Board.
• The Committee also resolved to recommend the need to ensure annual
Board and Director training to enable them keep abreast of trends and best
practice in directorship.
Governance policies • The Committee noted the need to review existing governance policies and
charters in line with regulatory requirements and changes and approved
compilation and review of all Board Charters and policies.
Board evaluation • The Committee commissioned a Board and Individual Directors Evaluation
in respect of the 2018 financial year.
Executive and staff compensation • The Committee reviewed and considered the report presented by
management of the comparative analysis of the salary structure against
industry peers with a view to make the compensation structure more
competitive and attractive to people with the requisite skill sets.
• The Committee considered implementation of an individual performance
bonus and other staff incentives subject to satisfactory performance.
Succession planning and manpower • The Committee resolved to implement succession planning initiatives that
planning will enable the Company to recruit superior employees, develop their
knowledge, skills, and abilities, and prepare them for advancement and/or
promotion into ever more challenging roles within the organisation.
Talent management system • The Committee approved the implementation of a Talent Management
System that attracts and builds young talented professionals who will serve
as a pool for future growth and staff retention. A new 18-month Graduate
Trainee Programme has already started in Nigeria and will be replicated in all
the Pan-African locations.

Senior Executives
Competitive • Remuneration and reward strategies are set at levels that enable the Group to attract, motivate
remuneration and retain the right skills required to efficiently manage the operations and growth of the business.
Attraction • Salaries for Senior Executives are set at a level to attract and retain high-calibre Executives with
and retention international experience that will benefit the Company and its operations.
Performance related • Annual performance goals of Senior Executives shall be aligned to shareholder interest. This is
to ensure that Senior Executives make prudent decisions in deploying the Group’s resources to
generate sustainable growth.
• The Group’s performance-based incentive programmes for the Executive management shall be
aligned to individual performance and the overall performance of the Group.
• This approach drives a high performance culture that rewards individual contributions and the
achievement of business results that enhance shareholder value. Senior Executives can earn an
annual bonus of up to 25% of their base salary, depending on the achievement of agreed
corporate and personal objectives.
Long term • The remuneration structure will be designed to reflect the long-term nature of Dangote Cement’s
business while balancing risks and reward. The performance period for this long-term component
will typically run for three years, with the Executive not receiving any bonus until the end of the
performance period. The structure of the long-term incentive is under consideration at present.
Fairness • Dangote Cement will regularly benchmark its remuneration practices against international peer
organisations whose business profiles are broadly similar to that of the Group, using remuneration
surveys, peer reviews, etc. This will ensure that the overall pay takes into cognisance both the
external environment as well as the Group’s conditions at any point in time.
Non-Executive Directors
Competitive • Remuneration will be set at levels that enable the Group to attract, motivate and retain
remuneration world‑class talent with the right skills required to effectively oversee the operations and growth
of the business.
• The Group will regularly benchmark its remuneration practices against other international
organisations whose business profiles are broadly similar to ours, using publicly available
information gathered from remuneration surveys, peer reviews, etc.
Fixed • Remuneration will be determined for each year and will be payable periodically throughout
the year.
Transparency • The Group will maintain a transparent remuneration process that includes adequate
consideration and approval of remuneration payable.

01 02 03 04
Elements of remuneration
Senior Executives (including Group CEO)
Purpose and
Element link to strategy Objectives Operation
Basic pay • This is a fixed salary, • To attract and retain • Salaries for all roles are determined with
which is not dependent talent in a competitive reference to applicable relevant market
on performance. It international market. practices and benchmarks.
comprises basic pay and
• Payment to be made monthly.
all cash allowances paid
to the Executive.
Short-term • This represents the • To motivate and reward • Senior Executives’ annual performance
performance pay-at-risk that is the delivery of annual incentives will be evaluated against the
incentive contingent on the goals at Group and performance metrics defined in their
achievement of agreed individual levels. approved individual balanced scorecard.
performance indicators.
• To reward contributions • Payment in March, following Board
It includes the established
from short to mid-term approval of the annual financial results.
and incidental payouts
performance of the Group
from the annual incentive
and demonstrate potential
scheme.
for any future contribution.
Long-term • This is designed to • To reward sustained growth • The structure of the long-term incentive
performance improve long-term in shareholder value. plan is under consideration at present.
incentive performance of the
Group by aligning the
interests of the Senior
Executives with Group
performance.
Benefits and • These are the non- • To reflect the market value • Review periodically in line with the
perquisite monetary forms of of individuals and their role individual contract of employment.
compensation provided within the Group.
• Includes accommodation, company
to the Executives.
• To aid retention and car (and related benefits), club and
remain competitive in the professional membership subscription,
marketplace. air travel tickets, per diem, medical
insurance and life assurance.

Elements of remuneration continued

Non-Executive Directors
Element Objectives Operation
Directors’ fees • To attract individuals with relevant skills, • Reviewed every two years and changes made
knowledge and experience. on need basis subject to shareholder approval
at the Annual General Meeting.
• Payment to be made quarterly or annually.
Sitting • To recognise the responsibilities and • Reviewed every two years with changes subject
allowances contributions of the Non-Executive Directors on to shareholder approval at the Annual General
the Board. Meeting.
• To encourage attendance and participation of • Payment made per meeting.
Non-Executive Directors at designated
Committees assigned to them.
Other • To cover costs incurred in carrying out the • Review every two years subject to the approval
allowances Directors’ duties. of the Board.
• Payment made as required.
Annual performance incentive for 2018

In accordance with the Group Remuneration Policy set out in this report, incentives awarded to the Group CEO and Senior
Executives are based on the performance of the Group and on their individual performance. At the beginning of the year,
the Committee set operational targets consisting of several key performance indicators (KPIs) covering both financial and
non‑financial measures of performance for the Group CEO and Senior Executives.
The Committee agreed that for 2018, it was necessary to award performance incentives, having reviewed the Group’s performance
and the performance of the Executive team against the overall performance of the Group in 2018 and the KPIs set at the
beginning of the year.
Some of the significant achievements in 2018 included:
• improvement in revenue and profitability in the Nigerian market;
• increase in sales volumes and revenues in some key Pan-African operations; and
• improvements in sales and market shares in key Pan-African operations.

01 02 03 04
Directors’ emoluments for 2018

Details of the remuneration paid to Non-Executive Directors in 2018 can be found in the table below.
Director fees and allowances Sitting allowances Other allowances Total
2018 2017 2018 2017 2018 2017 2018 2017
Name of Director ₦’000 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000
Aliko Dangote 5,000 5,000 3,300 6,100 40,050 27,476 48,350 38,576
Olakunle Alake 4,000 4,000 7,250 7,550 40,050 26,426 51,300 37,976
Cherie Blair 4,000 — 1,200 — 3,650 — 8,850 —
Sani Dangote 4,000 4,000 700 6,800 45,550 26,426 50,250 37,226
Abdu Dantata 4,000 4,000 4,800 5,100 40,050 26,426 48,850 35,526
Sir Michael Davis 4,000 — 1,200 — 3,650 — 8,850 —
Ernest Ebi 4,000 4,000 8,500 9,100 42,100 32,626 54,600 45,726
Devakumar Edwin 4,000 4,000 7,600 8,800 40,050 26,426 51,650 39,226
Emmanuel Ikazoboh 4,000 4,000 8,150 8,750 42,100 32,626 54,250 45,376
Fidelis Madavo 4,000 4,000 7,100 7,400 40,050 26,426 51,150 37,826
Olusegun Olusanya 4,000 4,000 8,150 8,750 42,100 32,626 54,250 45,376
Dorothy Ufot 4,000 4,000 4,800 5,100 45,250 32,626 54,050 41,726
Douraid Zaghouani 4,000 4,000 4,800 4,800 40,050 26,426 48,850 35,226
Viswanathan Shankar 4,000 — 2,000 — — — 6,000 —
Joseph Makoju — 4,000 — 6,900 — 26,426 — 37,326
Total 57,000 49,000 69,550 85,150 464,700 342,962 591,250 477,112
Annual fees for Directors

2018 2017
Position ₦’000 ₦’000
Chairman 5,000 5,000

Non-Executive Directors 4,000 4,000
Committee chairmanship 400 400
Committee membership 350 350
Proposed Non-Executive Director fees for 2019

In line with Section 14.6 of the SEC Code, the Board has fixed the remuneration of Non-Executive Directors for shareholders’
approval. It is proposed that fees for Non-Executive Directors will remain at the same amount as paid in 2018 (see table).
The proposed fees will be presented to shareholders during the Annual General Meeting for their consideration.
Directors’ interests
The interests in the ordinary shares of the Company of Directors who held office during the period 1st January, 2018 to
31st December, 2018, are set out in the Directors’ Report on pages 91 to 95.
Emmanuel Ikazoboh
Chairman of the Remuneration and Governance Committee
25th February 2019

Financial Financial statements
123 Report of the Statutory
Audit Committee
124 Certification pursuant to Section
60 of the Investments and
statements
Securities Act (ISA) 2007
125 Statement of Directors’
Responsibilities for the
Preparation and Approval
of the Financial Statements
126 Independent Joint
Auditors’ Report
129 Consolidated and separate
statement of profit or loss
130 Consolidated and
separate statement of
comprehensive income
statement of financial position
132 Consolidated statement of
changes in equity
133 Separate statement of changes
in equity
statement of cash flows
135 Notes to the consolidated and
separate financial statements
197 Five-year financial summary
– other national disclosure
199 Statement of value added
– other national disclosure
Supplementary information
200 Related-party transactions
202 Board policies
204 Compliance with SEC
disclosure requirements
207 Notice of 10th Annual
General Meeting
208 Directors and
professional advisers
209 Corporate information
210 Donations and sponsorships
212 Board and Committee meeting
dates and attendance
215 Glossary of abbreviations
217 Mandate for E-Dividend Payment
219 Proxy Form
01 02 03 04
Report of the Statutory Audit Committee
In accordance with Section 359 (6) of the Companies and Allied Matters Act, Cap C20 LFN 2004 and Section 30.4 of the
SEC Code, the members of the Statutory Audit Committee of Dangote Cement Plc hereby report as follows:
“We have exercised our statutory functions under Section 359 (6) of the Companies and Allied Matters Act, Cap C20 LFN 2004
and we acknowledge the cooperation of the Board, management and staff in the conduct of these responsibilities. After careful
consideration of the report of the external auditors, we accepted the report that the Financial Statements give a true and fair
view of the state of the Group’s financial affairs as at 31st December, 2018.
We confirm that:
I. The accounting and reporting policies of the Group are in accordance with legal and regulatory requirements as well as
agreed ethical practices;
II. We reviewed the scope and planning of audit requirements and found them adequate;
III. We reviewed the findings on the management letter prepared by the external auditors and found management responses
to the findings satisfactory;
IV. The accounting and internal controls system is constantly and effectively being monitored through an effective internal
audit function;
V. We made recommendations to the Board on the re-appointment and remuneration of the external auditors and also reviewed
the provision made in the Financial Statements for the remuneration of the external auditors; and
VI. We considered that the external auditors are independent and qualified to perform their duties effectively.
The Committee therefore recommends that the Audited Financial Statements for the year ended 31st December, 2018 and the
External Auditors’ report thereon be presented for adoption at this Annual General Meeting.”
Robert Ade-Odiachi
Chairman, Statutory Audit Committee
FRC/2013/ICAN/00000004526
Members of the Statutory Audit Committee:

Robert Ade-Odiachi, Shareholders’ Representative
Nicholas Nyamali, Shareholders’ Representative
Sheriff Yussuf, Shareholders’ Representative
Olakunle Alake, Non-Executive Director
Olusegun Olusanya, Independent Non-Executive Director
Emmanuel Ikazoboh, Independent Non-Executive Director

Financial statements
Certification pursuant to Section 60

of the Investments and Securities Act (ISA) 2007
We have reviewed the consolidated and separate financial statements of Dangote Cement Plc and its subsidiaries (“the Group”)
for the year ended 31st December 2018.
Based on our knowledge, these consolidated and separate financial statements do not:
• contain any untrue statement of a material fact; or
• omit to state a material fact, which would make the statement misleading in light of the circumstances under which such
statements were made.
The financial statements and other financial information included in this report fairly present in all material respects the financial
condition, results of operations and cash flows of the Group as of and for the years presented in the consolidated and separate
financial statements.
The Directors are responsible for establishing and maintaining internal controls. We have:
• designed such internal controls to ensure that material information relating to the Group is made known to us by others within
the Group, particularly during the year in which this report is being prepared;
• continuously evaluated the effectiveness of the Group and Company's internal controls and reported to the Board’s Audit and
Risk Management Committee on a quarterly basis; and
• disclosed to the Audit Committee any fraud, whether material or not, that involved management or other employees who
have a significant role in the Company’s internal controls.
Engr. Joseph Makoju Mni, OFR. Brian Egan

Group Chief Executive Officer Group CFO/Executive Director, Finance
FRC/2018/COREN/00000017767 FRC/2015/MULTI/00000011227

01 02 03 04
Statement of Directors’ Responsibilities for the Preparation

and Approval of the Financial Statements
For the year ended 31st December 2018
The Directors of Dangote Cement Plc are responsible for the preparation of the consolidated and separate financial statements
that present fairly the financial position of the Group and company as at 31st December 2018, and the results of its operations,
cash flows and changes in equity for the year then ended, in compliance with International Financial Reporting Standards (“IFRS”)
and in the manner required by the Companies and Allied Matters Act of Nigeria and the Financial Reporting Council of Nigeria
Act, No 6, 2011.
In preparing the financial statements, the Directors are responsible for:
• properly selecting and applying accounting policies;
• presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and
understandable information;
• providing additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to
understand the impact of particular transactions, other events and conditions on the Group’s financial position and financial
performance; and
• making an assessment of the Group’s ability to continue as a going concern.
The Directors are responsible for:
• designing, implementing and maintaining an effective and sound system of internal controls throughout the Group and Company;
• maintaining adequate accounting records that are sufficient to show and explain the Group’s and company’s transactions and
disclose with reasonable accuracy at any time, the financial position of the Group and company, and which enable them to
ensure that the financial statements of the Group and company comply with IFRS;
• maintaining statutory accounting records in compliance with the legislation of Nigeria and IFRS;
• taking such steps as are reasonably available to them to safeguard the assets of the Group and Company; and
• preventing and detecting fraud and other irregularities.
The consolidated and separate financial statements of the Group and company for the year ended 31st December 2018 were
approved by the directors on 25th February 2019.
On behalf of the Directors of the Group
Aliko Dangote Engr. Joseph Makoju Mni, OFR.

Chairman Group Chief Executive Officer/Group Managing Director

Independent Joint Auditors’ Report

To the Shareholders of Dangote Cement Plc
Report on the audit of the Consolidated and Separate Financial Statements

Opinion
We have audited the accompanying consolidated and separate financial statements of Dangote Cement Plc (“the Company”)
and its subsidiaries (together referred to as “the Group”) which comprise the consolidated and separate statement of financial
position as at 31 December 2018, the consolidated and separate statements of profit or loss, comprehensive income, changes
in equity, cash flows for the year then ended, the notes to the consolidated and separate financial statements including a
summary of significant accounting policies.
In our opinion, the consolidated and separate financial statements give a true and fair view of the consolidated and separate
financial position of Dangote Cement Plc as at 31 December 2018 and the consolidated and separate financial performance
and statement of cash flows for the year then ended in accordance with the International Financial Reporting Standards, the
Companies and Allied Matters Act Cap C20 LFN 2004 and the Financial Reporting Council of Nigeria Act, 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards
are further described in the Auditors’ Responsibilities for the Audit of the Consolidated and Separate Financial Statements section
of our report. We are independent of the Group in accordance with the requirements of the Institute of Chartered Accountants of
Nigeria Professional Code of Conduct and Guide for Accountants (ICAN Code) and other independence requirements applicable
to performing audits of financial statements in Nigeria. We have fulfilled our other ethical responsibilities in accordance with the
ICAN Code and in accordance with other ethical requirements applicable to performing audits in Nigeria. The ICAN Code is
consistent with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A
and B). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated
and separate financial statements of the current year. These matters were addressed in the context of our audit of the consolidated
and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. We have determined the matters described below as a key audit matter to be communicated in our report. The
key audit matters below relate to the audit of the separate financial statements.
Key Audit Matter How the matter was addressed in the audit
Tax liabilities on income expected to be on tax holiday (Pioneer)

In determining the tax liabilities for the year, the directors have We involved tax specialists to review and evaluate the
assumed that the Ibese production lines 3&4 and the Obajana recognition and measurement of the tax liabilities for the year.
production line 4, both in Nigeria, are eligible for tax holiday The procedures included:
(Pioneer holiday). These production lines enjoyed pioneer
• Assessing the requirements by the relevant regulations and
holidays for three years which expired on 28 February 2018.
government agencies that qualify businesses for pioneer
Applications for extension has been submitted to the Nigerian
holidays and verifying that the company has met all
Investment Promotion Commission (NIPC). The assumption is
requirements to enable it obtain approval for the tax holiday.
premised on the fact that the production lines have met all the
necessary requirements to be granted tax holidays and • Reviewing the conditions required for granting additional two
historical trend in granting pioneer holidays. years extension and confirmation that the company met the
prescribed conditions.
As disclosed in note 4.1.2 to the financial statements, the
directors have made a significant judgement in determining • Evaluating the adequacy of the determined tax liabilities in
the tax liabilities for the year based on historical trends in line with the relevant tax laws in Nigeria.
obtaining pioneer status.
• Reviewing the trend in the company’s applications for
An additional tax charge of approximately ₦43 billion would pioneer holidays and approval thereof; and confirming that
represent a material misstatement if the pioneer status approvals were usually obtained when the company met the
applications are not approved because the Company, in required conditions.
determining its tax liabilities, has maintained the assumptions
Based on the review and evaluation performed, as well as the
that approval will be obtained. Consequently, this is a key
historical trend in obtaining pioneer holidays, we believe that the
audit matter.
directors’ assumption in this respect is appropriate and reasonable.
Hence we concur with the conclusion of the directors.

01 02 03 04
Other information
The directors are responsible for the other information. The other information comprises the directors’ Report, Audit Committee’s
Report and Company Secretary’s Report, which we obtained prior to the date of this auditors’ report. The other information
does not include the consolidated and separate financial statements and our report thereon.
Our opinion on the consolidated and separate financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
Based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, if we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to
report in this regard.
Responsibilities of the Directors for the Consolidated and Separate Financial Statements
The directors are responsible for the preparation of the consolidated and separate financial statements in accordance with
International Financial Reporting Standards and the requirements of the Companies and Allied Matters Act CAP C20 LFN 2004,
Financial Reporting Council Act, 2011 and for such internal control as the directors determine is necessary to enable the
preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the consolidated and separate financial statements, the directors are responsible for assessing the Group and
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group and/or the Company or to cease
operations, or have no realistic alternative but to do so.
Auditors’ Responsibilities for the Audit of the Consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these consolidated and separate financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group and the Company’s
internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty exists relating to events or conditions that may cast significant doubt
on the Group and Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the consolidated and separate financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and Company
to cease to continue as a going concern.

Independent Joint Auditors’ Report continued

To the Shareholders of Dangote Cement Plc
Auditors’ Responsibilities for the Audit of the Consolidated and Separate Financial Statements continued
• Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the
disclosures, and whether the Group and Company’s financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Group to express an opinion on the consolidated and separate financial statements. We are responsible for the direction,
supervision and performance of the Group’s audit. We remain solely responsible for our audit opinion.
We communicate with the audit committee and the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the audit committee and directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with the audit committee and/or the directors, we determine those matters that were of most
significance in the audit of the financial statements of the current year and are therefore the key audit matters. We describe these
matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the benefits derivable by the public from such communication.
Report on Other Legal and Regulatory Requirements
In accordance with the Sixth Schedule of the Companies and Allied Matters Act CAP C20 LFN 2004, we expressly state that:
i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the
purpose of our audit.
ii) The Group and Company have kept proper books of account, so far as appears from our examination of those books.
iii) The Group and Company’s financial position, statements of profit or loss and comprehensive income are in agreement with
the books of account and returns.
Abraham Udenani, FCA Tajudeen Oni, FCA

FRC/2013/ICAN/00000000853 FRC/2013/ICAN/00000000749
For: Deloitte & Touche For: Ahmed Zakari & Co
Chartered Accountants Chartered Accountants
Lagos, Nigeria Lagos, Nigeria
26th February, 2019 26th February, 2019

01 02 03 04
Consolidated and separate statement of profit or loss

Group Company
Year ended Year ended Year ended Year ended
31/12/18 31/12/17 31/12/18 31/12/17
Notes ₦’million ₦’million ₦’million ₦’million
Revenue 5 901,213 805,582 618,301 552,364

Production cost of sales 7 (383,311) (351,290) (170,288) (158,594)
Gross profit 517,902 454,292 448,013 393,770
Administrative expenses 8 (52,501) (45,380) (27,108) (22,571)
Selling and distribution expenses 9 (136,925) (109,917) (89,278) (68,683)
Other income 11 10,222 5,213 3,783 3,386
Profit from operating activities 338,698 304,208 335,410 305,902
Finance income – interest 10 11,323 9,136 37,705 36,383
Finance income – others 10 — 26,790 41,673 34,903
Finance costs 10 (49,778) (52,711) (22,565) (35,035)
Share of profit from associate 17.3 563 2,167 — —
Profit before tax 300,806 289,590 392,223 342,153
Income tax credit/(expense) 14 89,519 (85,342) 89,233 (87,523)
Profit for the year 390,325 204,248 481,456 254,630
Profit for the year attributable to:
Owners of the Company 388,983 198,585 481,456 254,630
Non-controlling interests 1,342 5,663 — —
390,325 204,248 481,456 254,630
Earnings per share, basic and diluted (Naira) 13 22.83 11.65 28.25 14.94
The accompanying notes on pages 135 to 196 and other national disclosures on pages 197 to 199 form an integral part of
these consolidated and separate financial statements.

Consolidated and separate statement of comprehensive income

Group Company
31/12/18 31/12/17 31/12/18 31/12/17
₦’million ₦’million ₦’million ₦’million
Profit for the year 390,325 204,248 481,456 254,630

Other comprehensive income, net of income tax:
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating net investments
in foreign operations (6,147) (3,572) — —
Other comprehensive loss for the year, net of income tax (6,147) (3,572) — —
Total comprehensive income for the year 384,178 200,676 481,456 254,630
Total comprehensive income for the year attributable to:
Owners of the Company 386,147 195,062 481,456 254,630
Non-controlling interests (1,969) 5,614 — —
384,178 200,676 481,456 254,630

01 02 03 04
Consolidated and separate statement of financial position

As at 31st December 2018
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Assets
Non-current assets
Property, plant and equipment 15 1,171,864 1,192,140 535,934 549,962
Intangible assets 16 5,969 6,355 48 37
Investments in subsidiaries 17.2 — — 162,071 161,957
Investment in associate 17.3 4,312 3,749 1,582 1,582
Finance lease receivables 21 6,475 6,614 6,475 6,614
Deferred tax asset 14.3 40,622 30,625 14,561 6,674
Prepayments for property, plant and equipment 18.1 36,383 16,101 — 1,600
Other receivables 30 — — 560,277 455,792
Total non-current assets 1,265,625 1,255,584 1,280,948 1,184,218
Current assets
Inventories 19 106,998 94,594 59,820 62,259
Trade and other receivables 20 44,468 30,155 11,046 12,340
Prepayments and other current assets 18.2 101,883 115,496 252,589 248,194
Finance lease receivables 21 2,380 1,608 2,380 1,608
Current income tax receivables 14.2 6,213 59 6,211 —
Cash and bank balances 31 166,896 168,387 108,980 102,468
Total current assets 428,838 410,299 441,026 426,869
Total assets 1,694,463 1,665,883 1,721,974 1,611,087
Liabilities
Current liabilities
Trade and other payables 24 230,970 270,721 92,879 142,737
Current income tax payable 14.2 9,223 63,901 8,608 63,787
Financial liabilities 25 220,128 144,783 145,436 86,190
Other current liabilities 26.2 35,185 41,071 37,836 51,242
Total current liabilities 495,506 520,476 284,759 343,956
Non-current liabilities
Deferred tax liabilities 14.3 83,350 116,898 80,033 116,491
Financial liabilities 25 125,725 242,894 62,168 157,195
Long-term provisions and other charges 27 2,753 3,416 1,310 2,073
Deferred revenue 26.1 516 839 156 355
Total non-current liabilities 212,344 364,047 143,667 276,114
Total liabilities 707,850 884,523 428,426 620,070
Net assets 986,613 781,360 1,293,548 991,017
Equity
Share capital 22.1 8,520 8,520 8,520 8,520
Share premium 22.1 42,430 42,430 42,430 42,430
Capital contribution 22.4 2,877 2,877 2,828 2,828
Currency translation reserve 22.3 72,605 75,441 — —
Retained earnings 848,695 639,462 1,239,770 937,239
Equity attributable to owners of the Company 975,127 768,730 1,293,548 991,017
Non-controlling interest 11,486 12,630 — —
Total equity 986,613 781,360 1,293,548 991,017
Total equity and liabilities 1,694,463 1,665,883 1,721,974 1,611,087
These financial statements were approved and authorised for issue by the Board of Directors on 25th February 2019 and were
signed on its behalf by:
Aliko Dangote, GCON Engr. Joseph Makoju Mni, OFR. Brian Egan
Chairman, Board of Directors Group Chief Executive Officer Group CFO/Executive Director, Finance
FRC/2013/IODN/00000001766 FRC/2018/COREN/00000017767 FRC/2015/MULTI/00000011227

Consolidated statement of changes in equity

Attributable
Currency to the Non-
Share Share Retained translation Capital owners of controlling Total
capital premium earnings reserve contribution the parent Interests equity
Group ₦’million ₦’million ₦’million ₦’million ₦’million ₦’million ₦’million ₦’million
Balance as at 1st January 2017 8,520 42,430 605,662 78,964 2,877 738,453 (12,925) 725,528
Profit for the year — — 198,585 — — 198,585 5,663 204,248
Other comprehensive income for the year,
net of income tax (tax nil) — — — (3,523) — (3,523) (49) (3,572)
Total comprehensive income for the year — — 198,585 (3,523) — 195,062 5,614 200,676
Effect of changes in subsidiary shareholding — — (19,941) — — (19,941) 19,941 —
Dividends paid — — (144,844) — — (144,844) — (144,844)
Balance as at 31st December 2017 8,520 42,430 639,462 75,441 2,877 768,730 12,630 781,360
Profit for the year — — 388,983 — — 388,983 1,342 390,325
Other comprehensive income for the year,
net of income tax (tax nil) — — — (2,836) — (2,836) (3,311) (6,147)
Total comprehensive income for the year — — 388,983 (2,836) — 386,147 (1,969) 384,178
Dividends paid — — (178,925) — — (178,925) — (178,925)
Effect of changes in subsidiary shareholding — — (825) — — (825) 825 —
Balance as at 31st December 2018 8,520 42,430 848,695 72,605 2,877 975,127 11,486 986,613
The accompanying notes and other national disclosures are an integral part of these consolidated and separate financial statements.

01 02 03 04
Separate statement of changes in equity

Share Share Capital Retained Total

capital premium contribution earnings equity
Company ₦’million ₦’million ₦’million ₦’million ₦’million
Balance as at 1st January 2017 8,520 42,430 2,828 827,453 881,231

Profit for the year — — — 254,630 254,630
Other comprehensive income for the year, net of income tax (tax nil) — — — — —
Total comprehensive income for the year — — — 254,630 254,630
Dividends paid — — — (144,844) (144,844)
Balance as at 31st December 2017 8,520 42,430 2,828 937,239 991,017
Profit for the year — — — 481,456 481,456
Other comprehensive income for the year, net of income tax (tax nil) — — — — —
Total comprehensive income for the year — — — 481,456 481,456
Dividends paid — — — (178,925) (178,925)
Balance as at 31st December 2018 8,520 42,430 2,828 1,239,770 1,293,548

Consolidated and separate statement of cash flows

Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Cash flows from operating activities

Profit before tax 300,806 289,590 392,223 342,153
Adjustments for:
Depreciation and amortisation 15,16 96,203 83,939 51,809 43,959
Write off and impairment of property, plant and equipment 360 287 — 197
Interest expense 10 41,413 52,101 22,312 34,425
Interest income 10 (11,323) (9,136) (37,705) (36,383)
Net realised exchange (gain)/loss on borrowings
and non-operating assets (1,970) (34,744) (50,399) (43,284)
Share of income from associate (563) (2,167) — —
Amortisation of deferred revenue 26 (306) (299) (274) (346)
Other provisions (663) 72 (763) (229)
Loss on disposal of property, plant and equipment 459 58 5 58
424,416 379,701 377,208 340,550
Changes in working capital
Change in inventories (11,9 97) (11,691) 3,119 (6,409)
Change in trade and other receivables (13,957) (3,876) 2,471 (483)
Change in trade and other payables (18,860) 2,616 (32,987) (16,814)
Change in prepayments and other current assets 8,996 (33,622) 1,764 (26,819)
Change in other current liabilities (5,594) 15,222 (7,605) 10,217
383,004 348,350 343,970 300,242
Receipt from customers on finance lease trucks 3,507 238 3,507 238
Income tax paid 14.2 (11,163) (3,213) (10,291) (2,512)
Net cash generated from operating activities 375,348 345,375 337,186 297,968
Cash flows from investing activities
Interest received 9,974 9,136 6,475 6,970
Acquisition of intangible assets 16 (796) (1,639) (27) (21)
(Increase)/decrease in receivables from subsidiaries — — (38,870) 5,811
Acquisition of investment — — (8) (2,541)
Acquisition of property, plant and equipment (131,045) (107,953) (61,716) (61,497)
Additions to property, plant and equipment 15 (88,623) (85,621) (42,145) (40,470)
Change in non-current prepayment (17,307) (2,905) 1,600 (1,600)
Net suppliers’ credit repaid (25,115) (19,427) (21,171) (19,427)
Net cash used in investing activities (121,867) (100,456) (94,146) (51,278)
Cash flows from financing activities
Interest paid (45,782) (48,358) (27,486) (30,934)
Dividends paid (178,925) (144,844) (178,925) (144,844)
Loans obtained 215,052 310,659 197,717 263,152
Loans repaid (247,39 9 ) (308,068) (227,834) (297,106)
Net cash used in financing activities (257,054) (19 0,611) (236,528) (209,732)
(Decrease)/increase in cash and cash equivalents (3,573) 54,308 6,512 36,958
Effects of exchange rate changes 844 (1,954) — —
Cash and cash equivalents at beginning of year 161,755 109,401 102,468 65,510
Cash and cash equivalents at end of year 31.1 159,026 161,755 108,980 102,468

01 02 03 04
Notes to the consolidated and separate financial statements

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 (DIL or “the parent company”). Its ultimate controlling party is Aliko Dangote.
The registered address of the Company is located at 1 Alfred Rewane Road, Ikoyi, Lagos, Nigeria.
The principal activity of the Company and its 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 17.
The consolidated financial statements of the Group for the year ended 31st December 2018 comprise the results and the
financial position of the Company and its subsidiaries.
The separate financial statements of the Company for the year ended 31st December 2018 comprise those of the Company only.
2. Significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have
been consistently applied to all the years presented, unless otherwise stated.
2.1.1 Statement of compliance
The Group and Company's full financial statements for the year ended 31st December 2018 have been prepared in accordance
with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB), and interpretations
issued by the IFRS Interpretations Committee of the IASB (together, IFRS) that are effective at 31st December 2018 and requirements
of the Companies and Allied Matters Act (CAMA) 2004 of Nigeria and the Financial Reporting Council (FRC) Act of Nigeria.
2.1.2 Basis of preparation
The financial statements have been prepared on the historical cost basis except for financial instruments that are measured at
revalued amounts or fair value, 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 value
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 and separate 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.
2.2.1 Basis of consolidation
The Group financial statements incorporate the financial statements of the parent company and entities controlled by the
Company and its subsidiaries made up to 31st December 2018. 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. Profit or loss and each component of other comprehensive income of subsidiaries are attributed to the owners
of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.


continued
2. Significant accounting policies continued

2.2.1 Basis of consolidation continued
Investments in subsidiaries
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.
2.2.2 Transactions eliminated on consolidation
All intra-group balances and any gain and losses arising from intra-group transactions are eliminated in preparing the consolidated
financial statements. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no
evidence of impairment.
2.2.3 Interest in associates
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the
financial and operating policy decisions of the investee but is not control or joint control over those policies.
The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity
method of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is
accounted for in accordance with IFRS 5. Under the equity method, an investment in an associate is initially recognised in the
consolidated statement of financial position at cost and adjusted thereafter to recognise the Group's share of the profit or loss
and other comprehensive income of the associate. When the Group's share of losses of an associate exceeds the Group's
interest in that associate (which includes any long-term interests that, in substance, form part of the Group's net investment in
the associate), the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent
that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.
An investment in an associate is accounted for using the equity method from the date on which the investee becomes an
associate. On acquisition of the investment in an associate, any excess of the cost of the investment over the Group's share
of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included within the
carrying amount of the investment. Any excess of the Group's share of the net fair value of the identifiable assets and liabilities
over the cost of the investment, after reassessment, is recognised immediately in profit or loss in the period in which the
investment is acquired.
The requirements of IAS 36 are applied to determine whether it is necessary to recognise any impairment loss with respect to
the Group’s investment in an associate. When necessary, the entire carrying amount of the investment (including goodwill) is
tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount
(higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognised forms part
of the carrying amount of the investment. Any reversal of that impairment loss is recognised in accordance with IAS 36 to the
extent that the recoverable amount of the investment subsequently increases.
The Group discontinues the use of the equity method from the date when the investment ceases to be an associate or when the
investment is classified as held for sale. When the Group retains an interest in the former associate and the retained interest is a
financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as its fair value on
initial recognition in accordance with IFRS 9. The difference between the carrying amount of the associate at the date the equity
method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the
associate is included in the determination of the gain or loss on disposal of the associate. In addition, the Group accounts for
all amounts previously recognised in other comprehensive income in relation to that associate on the same basis as would be
required if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognised
in other comprehensive income by that associate would be reclassified to profit or loss on the disposal of the related assets or
liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when the equity
method is discontinued.
The Group continues to use the equity method when an investment in an associate becomes an investment in a joint venture
or an investment in a joint venture becomes an investment in an associate. There is no remeasurement to fair value upon such
changes in ownership interests.
When the Group reduces its ownership interest in an associate but the Group continues to use the equity method, the Group
reclassifies to profit or loss the proportion of the gain or loss that had previously been recognised in other comprehensive
income relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or loss on the disposal
of the related assets or liabilities.

01 02 03 04

2.2.3 Interest in associates continued
When a group entity transacts with an associate of the Group, profits and losses resulting from the transactions with the associate
are recognised in the Group's consolidated financial statements only to the extent of interests in the associate that are not
related to the Group.
In the separate financial statements for the parent company, investments in associates are recognised at cost less accumulated
impairment.
2.3 Non-controlling interest
Non-controlling interest is the equity in a subsidiary or entity controlled by the Company, not attributable, directly or indirectly, to
the parent company and is presented separately in the consolidated statement of profit or loss and other comprehensive income
and within equity in the consolidated statement of financial position. Total comprehensive income attributable to non-controlling
interests is presented on the line “Non-controlling interests” in the statement of financial position, even if it creates negative
non-controlling interests.
2.4 Acquisition of entities under common control
Business combinations arising from transfers of interests in entities that were under the control of the shareholder that controls
the Group are accounted for prospectively as at the date that transfer of interest was effected. The assets and liabilities acquired
are recognised at the carrying amounts recognised previously in the Group controlling shareholder’s consolidated financial
statements. The difference between the consideration paid and the net assets acquired is accounted for directly in equity.
2.4.1 Changes in the Group’s ownership interests in existing subsidiaries
Changes in the Group’s interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
The carrying amount of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative
interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair
value of the consideration paid or received is recognised directly in equity and attributed to the owners of the Company.
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is calculated as the difference
between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the
previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests.
All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the Group
had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another
category of equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the former subsidiary
at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IAS 39 or,
when applicable, the cost on initial recognition of an investment in an associate or a joint venture.
2.5 Revenue
The Group recognises revenue from the sale of cement and related products. Revenue is measured based on the consideration
to which the Group expects to be entitled in a contract with a customer and excludes amounts collected on behalf of third parties.
The Group recognises revenue when it transfers control of products to the customers.
2.5.1 Sale of cement and related products
The Group sells cement and related products both to distributors and directly to end user customers through its plants and depots.
For sales of products to the distributors, revenue is recognised when control of the goods has transferred, being when the
goods have been delivered to the distributor's location if the agreement is for the Group to deliver. In case of self collection
by distributors, revenue is recognised when the distributor picks the products from the Group's factories or warehouses.
Following delivery by the Group or self collection, the distributor has full discretion over the manner of distribution and price to
sell the goods, has the primary responsibility when onselling the goods and bears the risks of obsolescence and loss in relation
to the goods. For distributors that buy on credit, a receivable is recognised by the Group when the goods are delivered to the
distributor as this represents the point in time at which the right to consideration becomes unconditional, as only the passage
of time is required before payment is due.
For sales of goods to end user customers, revenue is recognised when control of the goods has transferred, being at the
point the customer lifts the goods from our factories if it is self collection or at the point at which the goods are delivered if the
agreement is for the Group to deliver. Payment for the transaction price is done by the time goods are collected; otherwise,
a receivable is recognised at that point.


continued

2.6 Finance income
Finance income comprises interest income on short-term deposits with banks, dividend income, changes in the fair value of
financial instruments at fair value through profit or loss and foreign exchange gains.
Dividend income from investments is recognised in profit and loss when the shareholder's right to receive payment has been
established (provided that it is probable that the economic benefits will flow to the Group and the amount of income can be
measured reliably).
Interest income on short-term deposits is recognised by reference to the principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
to that asset's net carrying amount on initial recognition.
2.7 Borrowing costs
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are
recognised in profit or loss in the period in which they are incurred.
However, borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are
capitalised as part of the cost of that asset. The capitalisation of borrowing costs commences from the date of incurring of
expenditure relating to the qualifying asset and ceases when all the activities necessary to prepare the qualifying asset for its
intended use or sale are complete. The interest rate used to determine the amount of capitalised interest cost is the actual interest
rate when there is a specific borrowing facility related to a construction project or the Group’s average borrowing interest rate.
Borrowing costs relating to the period after acquisition, construction or production are expensed. Investment income earned on
the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing
costs eligible for capitalisation. The borrowing costs capitalised may not exceed the actual interest incurred by the Group.
2.8 Foreign currency
2.8.1 Functional and presentation currency
These consolidated and separate financial statements are presented in the Nigerian Naira (₦), which is the Company’s functional
currency. All financial information presented in Naira has been rounded to the nearest million unless otherwise stated.
2.8.2 Foreign currency transactions
In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional
currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at
that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing
at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign
currency are not retranslated.
Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for:
• exchange differences on foreign currency borrowings relating to assets under construction for future productive use,
which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign
currency borrowings;
• exchange differences on transactions entered into in order to hedge certain foreign currency risks; and
• exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither
planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised initially
in other comprehensive income and reclassified from equity to profit or loss on disposal of the subsidiaries.

01 02 03 04

2.8 Foreign currency continued
2.8.2 Foreign currency transactions continued
The schedule below shows the exchange rates presented in one unit of foreign currency to Naira for the significant currencies
used in the group.
2018 2017
Currency Average rate Year-end rate Average rate Year-end rate
South African Rand to Naira 25.7371 21.3300 24.2238 26.7477

Central African Franc to Naira 0.6247 0.6254 0.5561 0.6060
Ethiopian Birr to Naira 12.6767 12.7992 13.2134 12.1711
Zambian Kwacha to Naira 32.9599 30.0872 33.4052 33.1428
Tanzanian Shilling to Naira 0.1530 0.1563 0.1422 0.1478
Ghanaian Cedi to Naira 73.9508 72.8389 72.3980 73.1413
United States Dollar to Naira 348.0050 358.7900 318.4042 331.0300
2.8.3 Foreign operations

In the Group’s consolidated financial statements, all assets and liabilities of Group entities with a functional currency other than
the Naira are translated into Naira upon consolidation. On consolidation, assets and liabilities have been translated at the closing
rate at the reporting date. Income and expenses have been translated into the Naira at the average rate over the reporting
period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the
transactions are used.
Exchange differences are charged/credited to other comprehensive income and recognised in currency translation reserve in
equity. The exchange differences arising on the translation are taken directly to a separate component of other comprehensive
income, “Currency translation differences”. On the partial or total disposal of a foreign entity with a loss of control, the related
share in the cumulative translation differences recognised in equity is recognised in the consolidated statement of profit or loss.
2.9 Property, plant and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the assets. Property, plant and machinery under
construction are disclosed as capital work in progress. The cost of construction recognised includes the cost of materials and
direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, including
borrowing costs on qualifying assets in accordance with the Group's accounting policy and the estimated costs of dismantling
and removing the items and restoring the site on which they are located if the Group has a legal or constructive obligation to
do so.
Such assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended
use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their
intended use. When parts of an item of property, plant and equipment have different useful lives and are individually significant in
relation to total cost of an item, they are accounted for as separate items (major components) of property, plant and equipment.
The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item
if it is probable that the future economic benefit embodied within the component will flow to the Group and its cost can be measured
reliably. The carrying amount of the replaced component is derecognised. The cost of day to day servicing of the property, plant
and equipment is recognised in profit or loss as incurred.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to
arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and
equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised
in profit or loss.


continued

2.9 Property, plant and equipment continued
2.9.1 Depreciation
Depreciation is calculated on the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less
its residual value (except for freehold land and assets under construction). Depreciation is recognised within “Cost of sales”
and “Administrative and selling expenses”, depending on the utilisation of the respective assets on a straight-line basis over
the estimated useful lives of each part of an item of property, plant and equipment.
Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the
Group will obtain ownership by the end of the lease term, in which case the assets are depreciated over their useful life on the
same basis as owned assets. Strategic spare parts with high value and held for commissioning of a new plant or for infrequent
maintenance of plants are capitalised and depreciated over the shorter of their useful life and the remaining life of the plant from
the date such strategic spare parts are capable of being used for their intended use.
Major overhaul expenditure, including replacement spares and labour costs, is capitalised and amortised over the average
expected life between major overhauls. All other replacement spares and other costs relating to maintenance of plant are
charged to profit or loss on consumption or as incurred respectively.
Life (years)
Leasehold land improvement Over the lease period

Buildings 25–50
Plant and machinery 10–25
Power plants 5–25
Cement plants 5–25
Motor vehicles 4–6
Computer hardware 3
Furniture and equipment 5
Aircraft and related components 5–25
The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the
effect of any changes in estimate accounted for on a prospective basis.
2.10 Intangible assets
In accordance with criteria set out in IAS 38 Intangible Assets, intangible assets are recognised only if identifiable; controlled by
the entity because of past events; it is probable that the expected future economic benefits that are attributable to the asset will
flow to the Group; and the cost of the asset can be measured reliably. Intangible assets primarily include amortisable items such
as software and mineral rights, as well as certain development costs that meet the IAS 38 criteria.
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and
accumulated impairment losses. Intangible assets are amortised using the straight-line method over their useful lives ranging
from two to seven years. Amortisation expense is recorded in “Cost of sales” and “Selling and distribution expenses” or “Administrative
expenses”, based on the function of the underlying assets. The estimated useful lives and amortisation method are reviewed at
the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
Exploration assets are carried at cost less any impairment losses. All costs, including overhead costs directly associated with the
specific project, are capitalised. The Directors evaluate each project at each period end to determine if the carrying value should
be written off. In determining whether expenditure meets the criteria to be capitalised, the Directors use information from several
sources, depending on the level of exploration.
Purchased exploration and evaluation assets are recognised at the cost of acquisition or at the fair value if purchased as part
of a business combination.
Exploration assets are amortised over a period of 30 years in line with the estimated lives of the mines.

01 02 03 04

2.10 Intangible assets continued
2.10.1 Internally generated intangible assets – research and development expenditure
Expenditure on research activities is recognised as an expense in the period in which it is incurred. An internally generated
intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if,
all of the following have been demonstrated:
• the technical feasibility of completing the intangible asset so that it will be available for use or sale;
• the intention to complete the intangible asset and use or sell it;
• the ability to use or sell the intangible asset;
• how the intangible asset will generate probable future economic benefits;
• the availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset; and
• the ability to measure reliably the expenditure attributable to the intangible asset during its development.
The amount initially recognised for internally generated intangible assets is the sum of the expenditure incurred from the date
The amount initially recognised for internally generated intangible assets is the sum of the expenditure incurred from the date
when the intangible asset first meets the recognition criteria listed above. Where no internally generated intangible asset can
be recognised, development expenditure is recognised in profit or loss in the period in which it is incurred.
Subsequent to initial recognition, internally generated intangible assets are reported at cost less accumulated amortisation and
accumulated impairment losses, on the same basis as intangible assets that are acquired separately.
2.10.2 Derecognition of intangible assets
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains
or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and
the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised.
2.11 Inventories
Inventories are stated at the lower of cost and net realisable value, with appropriate provisions for old and slow-moving items.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and
selling expenses.
Cost is determined as follows:
Raw materials
Raw materials which include purchase cost and other costs incurred to bring the materials to their location and condition are
valued using a weighted average cost basis.
Work in progress
Cost of work in progress includes cost of raw material, labour, production and attributable overheads based on normal operating
capacity. Work in progress is valued using a weighted average cost basis.
Finished goods
Cost is determined using the weighted average method and includes cost of material, labour, production and attributable
overheads based on normal operating capacity.
Spare parts and consumables
Spare parts which are expected to be fully utilised in production within the next operating cycle and other consumables are
valued at weighted average cost after making allowance for obsolete and damaged stocks.


continued

2.12 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument
of another entity.
Financial instruments are recognised in the consolidated and separate statements of financial position when a member of the
Group or the Company becomes a party to the contractual obligations of the instrument. Regular way purchases or sales of
financial assets, i.e. purchases or sales under a contract whose terms require delivery of the asset within the time frame
established generally by regulation or convention in the marketplace concerned, are accounted for at the trade date.
Initially, financial instruments are recognised at their fair value. Transaction costs directly attributable to the acquisition or issue
of financial instruments are recognised in determining the carrying amount except for financial instruments at fair value through
profit or loss. For financial instruments classified as fair value through profit or loss (FVTPL) transaction costs incurred are
recognised in profit or loss. Subsequently, financial assets and liabilities are measured according to the category to which they
are assigned. The Group does not make use of the option to designate financial assets or financial liabilities at fair value through
profit or loss at inception (fair value option).
2.12.1 Financial assets
Classification of financial assets
Debt instruments that meet the following conditions are measured subsequently at amortised cost:
• the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual
cash flows; and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
Debt instruments that meet the following conditions are measured subsequently at fair value through other
comprehensive income (FVTOCI):
• the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and
selling the financial assets; and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
The Group does not have debt instruments that are measured subsequently at fair value through profit or loss (FVTPL) or FVTOCI.
Despite the foregoing, the Group may make the following irrevocable election/designation at initial recognition of a financial asset:
• the Group may irrevocably elect to present subsequent changes in fair value of an equity investment in other comprehensive
income if certain criteria are met; and
• the Group may irrevocably designate a debt investment that meets the amortised cost or FVTOCI criteria as measured at
FVTPL if doing so eliminates or significantly reduces an accounting mismatch.
2.12.2 Cash and cash equivalents
The Group considers all highly liquid unrestricted investments with less than three months maturity from the date of acquisition
to be cash equivalents. Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash
management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

01 02 03 04

2.12 Financial instruments continued
2.12.3 Equity instruments designated as at FVTOCI
On initial recognition, the Group may make an irrevocable election (on an instrument‑by‑instrument basis) to designate
investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held
for trading or if it is contingent consideration recognised by an acquirer in a business combination.
A financial asset is held for trading if:
• it has been acquired principally for the purpose of selling it in the near term; or
• on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and has
evidence of a recent actual pattern of short‑term profit taking; or
• it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).
Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they are
measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and
accumulated in the investments revaluation reserve. The cumulative gain or loss is not reclassified to profit or loss on disposal
of the equity investments; instead, it is transferred to retained earnings.
Dividends on these investments in equity instruments are recognised in profit or loss in accordance with IFRS 9, unless the
dividends clearly represent a recovery of part of the cost of the investment. Dividends are included in the “finance income” line
item (note 10) in profit or loss.
2.12.4 Derecognition of financial assets
The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group
neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset,
the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group
retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise
the financial asset and also recognises a collateralised borrowing for the proceeds received.
2.12.5 Financial liabilities and equity instruments
Classification as debt or equity
Debt and equity instruments issued by a member of the Group are classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
2.12.6 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Equity instruments issued by the Group are recognised at the proceeds received, net of direct issue costs. Repurchase of the
Company's own equity instruments is recognised and deducted directly in equity.
2.12.7 Financial liabilities
All financial liabilities are measured subsequently at amortised cost using the effective interest method or at FVTPL. The Group
does not hold financial liabilities measured at FVTPL.
Financial liabilities measured subsequently at amortised cost
Financial liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held for trading, or (iii)
designated as at FVTPL are measured subsequently at amortised cost using the effective interest method. The effective interest
method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant
period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points
paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through
the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.
2.12.8 Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or expire.
The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is
recognised in profit or loss.


continued

2.12 Financial instruments continued
2.12.9 Offsetting
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only
when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and
settle the liability simultaneously.
2.12.10 Amortised cost and effective interest method
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income
over the relevant period.
For financial assets other than purchased or originated credit‑impaired financial assets (i.e. assets that are credit impaired on
initial recognition), the effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees
and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or
discounts) excluding expected credit losses, through the expected life of the debt instrument, or, where appropriate, a shorter
period, to the gross carrying amount of the debt instrument on initial recognition. For purchased or originated credit‑impaired
financial assets, a credit‑adjusted effective interest rate is calculated by discounting the estimated future cash flows, including
expected credit losses, to the amortised cost of the debt instrument on initial recognition.
The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the
principal repayments, plus the cumulative amortisation using the effective interest method of any difference between that initial
amount and the maturity amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is the
amortised cost of a financial asset before adjusting for any loss allowance.
Interest income is recognised using the effective interest method for debt instruments measured subsequently at amortised cost
and at FVTOCI. For financial assets other than purchased or originated credit‑impaired financial assets, interest income is calculated
by applying the effective interest rate to the gross carrying amount of a financial asset, except for financial assets that have subsequently
become credit‑impaired (see below). For financial assets that have subsequently become credit impaired, interest income is
recognised by applying the effective interest rate to the amortised cost of the financial asset. If, in subsequent reporting periods,
the credit risk on the credit‑impaired financial instrument improves so that the financial asset is no longer credit impaired, interest
income is recognised by applying the effective interest rate to the gross carrying amount of the financial asset.
For purchased or originated credit‑impaired financial assets, the Group recognises interest income by applying the credit‑adjusted
effective interest rate to the amortised cost of the financial asset from initial recognition. The calculation does not revert to the gross
basis even if the credit risk of the financial asset subsequently improves so that the financial asset is no longer credit impaired.
Interest income is recognised in profit or loss and is included in the "Finance income – interest income" line item (note 10).
2.13 Impairment
2.13.1 Financial assets
The Group recognises a loss allowance for expected credit losses on investments in debt instruments that are measured at
amortised cost or at FVTOCI, lease receivables, trade receivables and contract assets, as well as on financial guarantee contracts.
The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition
of the respective financial instrument. The Group always recognises lifetime ECL for trade receivables, contract assets and lease
receivables. The expected credit losses on these financial assets are estimated using a provision matrix based on the Group’s
historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment
of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where
appropriate. For all other financial instruments, the Group recognises lifetime ECL when there has been a significant increase in
credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial
recognition, the Group measures the loss allowance for that financial instrument at an amount equal to twelve‑month ECL.
Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial
instrument. In contrast, twelve‑month ECL represents the portion of lifetime ECL that is expected to result from default events on
a financial instrument that are possible within twelve months after the reporting date.

01 02 03 04

2.13 Impairment continued
2.13.1 Financial assets continued
(i) Significant increase in credit risk
In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Group
compares the risk of a default occurring on the financial instrument at the reporting date with the risk of a default occurring on
the financial instrument at the date of initial recognition. In making this assessment, the Group considers both quantitative and
qualitative information that is reasonable and supportable, including historical experience and forward‑looking information that is
available without undue cost or effort. Forward‑looking information considered includes the future prospects of the industries in
which the Group’s debtors operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant
think‑tanks and other similar organisations, as well as consideration of various external sources of actual and forecast economic
information that relate to the Group’s core operations.
In particular, the following information is taken into account when assessing whether credit risk has increased significantly since
initial recognition:
• an actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating;
• significant deterioration in external market indicators of credit risk for a particular financial instrument, e.g. a significant
increase in the credit spread, the credit default swap prices for the debtor, or the length of time or the extent to which the
fair value of a financial asset has been less than its amortised cost;
• existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant
decrease in the debtor’s ability to meet its debt obligations;
• an actual or expected significant deterioration in the operating results of the debtor;
• significant increases in credit risk on other financial instruments of the same debtor; and
• an actual or expected significant adverse change in the regulatory, economic or technological environment of the debtor that
results in a significant decrease in the debtor’s ability to meet its debt obligations.
Irrespective of the outcome of the above assessment, the Group presumes that the credit risk on a financial asset has increased
significantly since initial recognition when contractual payments are more than 30 days past due, unless the Group has
reasonable and supportable information that demonstrates otherwise.
Despite the foregoing, the Group assumes that the credit risk on a financial instrument has not increased significantly since initial
recognition if the financial instrument is determined to have low credit risk at the reporting date. A financial instrument is
determined to have low credit risk if:
(1) the financial instrument has a low risk of default;
(2) the debtor has a strong capacity to meet its contractual cash flow obligations in the near term; and
(3) adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability
of the borrower to fulfil its contractual cash flow obligations.
The Group considers a financial asset to have low credit risk when the asset has external credit rating of “investment grade”
in accordance with the globally understood definition or if an external rating is not available, the asset has an internal rating
of “performing”. Performing means that the counterparty has a strong financial position and there are no past due amounts.
For financial guarantee contracts, the date that the Group becomes a party to the irrevocable commitment is considered to be
the date of initial recognition for the purposes of assessing the financial instrument for impairment. In assessing whether there
has been a significant increase in the credit risk since initial recognition of financial guarantee contracts, the Group considers the
changes in the risk that the specified debtor will default on the contract.
The Group regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in
credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk
before the amount becomes past due.


continued

2.13.1 Financial assets continued
(ii) Definition of default
The Group considers the following as constituting an event of default for internal credit risk management purposes as historical
experience indicates that financial assets that meet either of the following criteria are generally not recoverable:
• when there is a breach of financial covenants by the debtor; or
• information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors,
including the Group, in full (without taking into account any collateral held by the Group).
Irrespective of the above analysis, the Group considers that default has occurred when a financial asset is more than 90 days
past due unless the Group has reasonable and supportable information to demonstrate that a more lagging default criterion is
more appropriate.
(iii) Credit‑impaired financial assets
A financial asset is credit impaired when one or more events that have a detrimental impact on the estimated future cash flows
of that financial asset have occurred. Evidence that a financial asset is credit‑impaired includes observable data about the
following events:
(a) significant financial difficulty of the issuer or the borrower;
(b) a breach of contract, such as a default or past due event (see (ii) above);
(c) the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted
to the borrower a concession(s) that the lender(s) would not otherwise consider;
(d) it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or
(e) the disappearance of an active market for that financial asset because of financial difficulties.
(iv) Write‑off policy
The Group writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and
there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy
proceedings, or in the case of trade receivables, when the amounts are over two years past due unless there is adequate
security. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures,
taking into account legal advice where appropriate. Any recoveries made are recognised in profit or loss.
(v) Measurement and recognition of expected credit losses
The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the
loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based
on historical data adjusted by forward‑looking information as described above. As for the exposure at default, for financial assets,
this is represented by the assets’ gross carrying amount at the reporting date; for financial guarantee contracts, the exposure
includes the amount drawn down as at the reporting date, together with any additional amounts expected to be drawn down
in the future by default date determined based on historical trend, the Group’s understanding of the specific future financing
needs of the debtors, and other relevant forward‑looking information.
For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are due to
the Group in accordance with the contract and all the cash flows that the Group expects to receive, discounted at the original
effective interest rate. For a lease receivable, the cash flows used for determining the expected credit losses is consistent with
the cash flows used in measuring the lease receivable in accordance with IAS 17 Leases.
If the Group has measured the loss allowance for a financial instrument at an amount equal to lifetime ECL in the previous
reporting period, but determines at the current reporting date that the conditions for lifetime ECL are no longer met, the Group
measures the loss allowance at an amount equal to twelve‑month ECL at the current reporting date, except for assets for which
a simplified approach was used.
The Group recognises an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment
to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at
FVTOCI, for which the loss allowance is recognised in other comprehensive income and accumulated in the investment
revaluation reserve, and does not reduce the carrying amount of the financial asset in the statement of financial position.

01 02 03 04

2.13.2 Non-financial assets
The carrying amounts of the Group’s non-financial assets are reviewed at each reporting date to determine whether there is any
indication of impairment. If any such indication exists then the asset’s recoverable amount is estimated. For intangible assets that
have indefinite useful lives or that are not yet available for use, the recoverable amount is estimated at each reporting date.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset. An impairment loss is
recognised if the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are
recognised in profit or loss. Impairment losses are reversed when there is an indication that the impairment loss may no longer
exist and there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed
only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss had been recognised. A reversal of an impairment loss is recognised
immediately in the profit or loss.
2.14 Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
2.14.1 Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in profit or loss
because of items of income or expense that are taxable or deductible in future years and items that are never taxable or
deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively
enacted by the end of the reporting period.
2.14.2 Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated
financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences
to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be
utilised. Deferred tax is not recognised for the following temporary differences: (i) the initial recognition of goodwill, (ii) the initial
recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor
taxable profit, and (iii) differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is
probable that they will not reverse in the foreseeable future.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates,
and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is
probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible
temporary differences associated with such investments and interests are only recognised to the extent that it is probable that
there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of
the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from
the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its
assets and liabilities.
2.14.3 Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive
income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or
directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination,
the tax effect is included in the accounting for the business combination.


continued

2.15 Government grants
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions
attaching to them and that the grants will be received.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises as
expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose primary
condition is that the Group should purchase, construct or otherwise acquire non-current assets are recognised as deferred
revenue in the consolidated statement of financial position and transferred to profit or loss on a systematic and rational basis
over the useful lives of the related assets.
Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving
immediate financial support to the Group with no future related costs are recognised in profit or loss in the period in which they
become receivable.
The benefit of a government loan at a below-market rate of interest is treated as a government grant, measured as the difference
between proceeds received and the fair value of the loan based on prevailing market interest rates. The total of the government
grant is recognised as deferred revenue on the statement of financial position and is recognised in profit or loss over the period
the related expenditure is incurred.
Export Expansion Grant (EEG) is recognised upon confirmation of the Group’s eligibility by the relevant government departments.
2.16 Employee benefits
2.16.1 Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is
provided by the employee.
2.16.2 Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate
entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution
pension plans are recognised as an employee benefit expense in profit or loss in the periods during which services are rendered
by employees.
2.17 Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable
that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the
end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those
cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable
is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be
measured reliably.
2.17.1 Restoration costs
Environmental expenditure related to existing conditions resulting from past or current operations and from which no current or
future benefit is discernible is charged to profit or loss. The Group recognises its liability on a site-by-site basis when it can be
reliably estimated. This liability includes the Group’s portion of the total costs and also a portion of other potentially responsible
parties’ costs when it is probable that they will not be able to satisfy their respective shares of the clean-up obligation. Recoveries
of reimbursements are recorded as assets when virtually certain.
2.18 Contingencies
Contingent liabilities are not recognised in the consolidated statement of financial position but are disclosed unless the possibility
of any outflow in settlement is remote. A contingent asset is not recognised in the consolidated statement of financial position
but disclosed when an inflow of economic benefits is probable.

01 02 03 04

2.19 Earnings per share
The Group presents basic earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit
or loss attributable to ordinary shareholders of the Company by the weighted average number of shares outstanding during the
period. The weighted average number of ordinary shares outstanding during the period and for all periods presented is adjusted
for the issue of bonus shares as if the bonus shares were outstanding at the beginning of the earliest period presented.
Diluted earnings per share are computed by dividing adjusted net income available to shareholders of the Company by the
weighted average number of common shares outstanding during the year adjusted to include any dilutive potential common
shares. The Group does not have any dilutive instruments.
2.20 Leases
In accordance with IFRIC 4 Determining Whether an Arrangement Contains a Lease, arrangements including transactions that
convey a right to use the asset, or where fulfilment of the arrangement is dependent on the use of a specific asset, are analysed
in order to assess whether such arrangements contain a lease and whether the requirements of IAS 17 Lease Contracts have to
be applied.
Leases – as a lessee
In accordance with IAS 17, the Group capitalises assets financed through finance leases where the lease arrangement
transfers to the Group substantially all of the rewards and risks of ownership. Lease arrangements are evaluated based
upon the following criteria:
• the lease term in relation to the assets’ useful lives;
• the total future payments in relation to the fair value of the financed assets;
• existence of transfer of ownership;
• existence of a favourable purchase option; and
• specificity of the leased asset.
Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the
minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy
applicable to that asset. The corresponding lease obligations, excluding finance charges, are included in current or long-term
financial liabilities as applicable.
Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant
rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless
they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Group’s general policy
on borrowing costs (see note 2.6). Contingent rentals are recognised as expenses in the periods in which they are incurred.
All other leases are operating leases and they are not recognised on the Group’s statement of financial position. Operating lease
payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is
more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals
arising under operating leases are recognised as an expense in the period in which they are incurred.
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The
aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another
systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.


continued
3. Application of new and revised International Financial Reporting Standards (IFRSs)

3.1 New and revised IFRSs/IFRICs affecting amounts reported and/or disclosures in these financial statements
In the current year, the Group has applied a number of amendments to IFRSs issued by the International Accounting Standards
Board (IASB) that are mandatorily effective for an accounting period that begins on or after 1st January 2017.
IFRS 9 Financial instruments
In the current year, the Group has applied IFRS 9 Financial Instruments (as revised in July 2014) and the related consequential
amendments to other IFRSs that are effective for an annual period that begins on or after 1st January 2018. The Group has
elected not to restate comparatives as allowed by the transition provisions of IFRS 9. Additionally, the Group adopted
consequential amendments to IFRS 7 Financial Instruments: Disclosures that were applied to the disclosures for 2018.
IFRS 9 introduced new requirements for:
(1) the classification and measurement of financial assets and financial liabilities;
(2) impairment of financial assets; and
(3) general hedge accounting.
Details of these new requirements as well as their impact on the Group’s consolidated financial statements are described below.
The Group has applied IFRS 9 in accordance with the transition provisions set out in IFRS 9.
(a) Classification and measurement of financial assets
The date of initial application (i.e. the date on which the Group has assessed its existing financial assets and financial liabilities
in terms of the requirements of IFRS 9) is 1st January 2018. Accordingly, the Group has applied the requirements of IFRS 9 to
instruments that continue to be recognised as at 1st January 2018 and has not applied the requirements to instruments that
have already been derecognised as at 1st January 2018.
All recognised financial assets that are within the scope of IFRS 9 are required to be measured subsequently at amortised
cost or fair value on the basis of the entity’s business model for managing the financial assets and the contractual cash flow
characteristics of the financial assets.
Specifically:
• debt instruments that are held within a business model whose objective is to collect the contractual cash flows, and that have
contractual cash flows that are solely payments of principal and interest on the principal amount outstanding, are measured
subsequently at amortised cost;
• debt instruments that are held within a business model whose objective is both to collect the contractual cash flows and to
sell the debt instruments, and that have contractual cash flows that are solely payments of principal and interest on the
principal amount outstanding, are measured subsequently at fair value through other comprehensive income (FVTOCI);
• all other debt investments and equity investments are measured subsequently at fair value through profit or loss (FVTPL).
Despite the aforegoing, the Group may make the following irrevocable election/designation at initial recognition of a financial asset;
• the Group may irrevocably elect to present subsequent changes in fair value of an equity investment that is neither held for
trading nor contingent consideration recognised by an acquirer in a business combination in other comprehensive income; and
• the Group may irrevocably designate a debt investment that meets the amortised cost or FVTOCI criteria as measured at
FVTPL if doing so eliminates or significantly reduces an accounting mismatch.
All debt instruments held by the Group are held within a business model whose objective is to collect the contractual cash flows,
and have contractual cash flows that are solely payments of principal and interest. These are measured at amortised cost similar
to the measurement criteria applied in prior periods, hence no material impact on the financial statements.
The Directors of the Company reviewed and assessed the Group’s existing financial assets as at 1st January 2018 based on the
facts and circumstances that existed at that date and concluded that the initial application of IFRS 9 has had no material impact
on the Group’s financial assets as regards their classification and measurement.

01 02 03 04
3. Application of new and revised International Financial Reporting Standards (IFRSs) continued
3.1 New and revised IFRSs/IFRICs affecting amounts reported and/or disclosures in these financial statements continued
IFRS 9 Financial instruments continued
(b) Impairment of financial assets
In relation to the impairment of financial assets, IFRS 9 requires an expected credit loss model as opposed to an incurred credit
loss model under IAS 39. The expected credit loss model requires the Group to account for expected credit losses and changes
in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition of the financial
assets. In other words, it is no longer necessary for a credit event to have occurred before credit losses are recognised.
Specifically, IFRS 9 requires the Group to recognise a loss allowance for expected credit losses on:
(1) debt investments measured subsequently at amortised cost or at FVTOCI;
(2) lease receivables;
(3) trade receivables and contract assets; and
(4) financial guarantee contracts to which the impairment requirements of IFRS 9 apply.
In particular, IFRS 9 requires the Group to measure the loss allowance for a financial instrument at an amount equal to the lifetime
expected credit losses (ECL) if the credit risk on that financial instrument has increased significantly since initial recognition, or
if the financial instrument is a purchased or originated credit‑impaired financial asset. However, if the credit risk on a financial
instrument has not increased significantly since initial recognition (except for a purchased or originated credit‑impaired financial
asset), the Group is required to measure the loss allowance for that financial instrument at an amount equal to twelve‑months’
ECL. IFRS 9 also requires a simplified approach for measuring the loss allowance at an amount equal to lifetime ECL for trade
receivables, contract assets and lease receivables in certain circumstances.
The consequential amendments to IFRS 7 have also resulted in more extensive disclosures about the Group’s exposure to credit
risk in the consolidated financial statements (see note 29). The impact of IFRS 9 on opening balances was considered immaterial.
(c) Classification and measurement of financial liabilities
A significant change introduced by IFRS 9 in the classification and measurement of financial liabilities relates to the accounting
for changes in the fair value of a financial liability designated as at FVTPL attributable to changes in the credit risk of the issuer.
Specifically, IFRS 9 requires that the changes in the fair value of the financial liability that is attributable to changes in the credit
risk of that liability be presented in other comprehensive income, unless the recognition of the effects of changes in the liability’s
credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair
value attributable to a financial liability’s credit risk are not subsequently reclassified to profit or loss, but are instead transferred
to retained earnings when the financial liability is derecognised.
Previously, under IAS 39, the entire amount of the change in the fair value of the financial liability designated as at FVTPL was
presented in profit or loss.
The Group does not hold financial liabilities designated as at FVTPL; therefore, the application of IFRS 9 has had no impact on
the classification and measurement of the Group’s financial liabilities.
(d) General hedge accounting
The new general hedge accounting requirements retain the three types of hedge accounting. However, greater flexibility has
been introduced to the types of transactions eligible for hedge accounting, specifically broadening the types of instruments that
qualify for hedging instruments and the types of risk components of non-financial items that are eligible for hedge accounting.
In addition, the effectiveness test has been replaced with the principle of an “economic relationship”. Retrospective assessment
of hedge effectiveness is also no longer required. Enhanced disclosure requirements about the Group’s risk management
activities have also been introduced.
The Group does not apply hedge accounting; therefore, the application did not have any impact on the financial statements.


continued
3.1 New and revised IFRSs/IFRICs affecting amounts reported and/or disclosures in these financial statements
continued
Impact of application of IFRS 15 Revenue from Contracts with Customers
In the current year, the Group has applied IFRS 15 Revenue from Contracts with Customers (as amended in April 2016) which
is effective for an annual period that begins on or after 1 January 2018. IFRS 15 introduced a 5‑step approach to revenue
recognition. Far more prescriptive guidance has been added in IFRS 15 to deal with specific scenarios. The Group’s accounting
policies for its revenue streams are disclosed in detail in note 2.5. The application of IFRS 15 has not had any impact on the
financial position and/or financial performance of the Group.
IFRS 2 (amendments) Classification and Measurement of Share‑based Payment Transactions
The amendments clarify the following:
(1) In estimating the fair value of a cash‑settled share‑based payment, the accounting for the effects of vesting and non‑vesting
conditions should follow the same approach as for equity‑settled share‑based payments.
(2) Where tax law or regulation requires an entity to withhold a specified number of equity instruments equal to the monetary
value of the employee’s tax obligation to meet the employee’s tax liability which is then remitted to the tax authority (typically
in cash), i.e. the share‑based payment arrangement has a “net settlement feature”, such an arrangement should be classified
as equity settled in its entirety, provided that the share‑based payment would have been classified as equity settled had it not
included the net settlement feature.
(3) A modification of a share‑based payment that changes the transaction from cash‑settled to equity settled should be
accounted for as follows:
(i) the original liability is derecognised;
(ii) the equity‑settled share‑based payment is recognised at the modification date fair value of the equity instrument granted
to the extent that services have been rendered up to the modification date; and
(iii) any difference between the carrying amount of the liability at the modification date and the amount recognised in equity
should be recognised in profit or loss immediately.
The Group does not have share-based payments; therefore, the application of this amendment did not have any impact on the
IAS 40 (amendments) Transfers of Investment Property
The amendments clarify that a transfer to, or from, investment property necessitates an assessment of whether a property meets,
or has ceased to meet, the definition of investment property, supported by observable evidence that a change in use has occurred.
The amendments further clarify that the situations listed in IAS 40 are not exhaustive and that a change in use is possible for
properties under construction (i.e. a change in use is not limited to completed properties). The Group does not hold investment
property; therefore, the application of this amendment did not have any impact on the financial statements.
Annual Improvements to IFRSs 2014–2016 Cycle (Amendments to IAS 28 Investments in Associates and Joint Ventures)
The amendments clarify that the option for a venture capital organisation and other similar entities to measure investments in
associates and joint ventures at FVTPL is available separately for each associate or joint venture, and that election should be
made at initial recognition. The application of this amendment did not have any impact on the financial statements because the
Group is not a venture capital organisation.
IFRIC 22 Foreign Currency Transactions and Advance Consideration
IFRIC 22 addresses how to determine the “date of transaction” for the purpose of determining the exchange rate to use on initial
recognition of an asset, expense or income, when consideration for that item has been paid or received in advance in a foreign
currency which resulted in the recognition of a non‑monetary asset or non‑monetary liability (for example, a non‑refundable deposit
or deferred revenue). The interpretation specifies that the date of transaction is the date on which the entity initially recognises
the non‑monetary asset or non‑monetary liability arising from the payment or receipt of advance consideration. If there are
multiple payments or receipts in advance, the interpretation requires an entity to determine the date of transaction for each
payment or receipt of advance consideration. The application of this interpretation did not have any impact as the Group's policy
was consistent with the interpretation.

01 02 03 04
3.2 New and revised IFRSs in issue but not yet effective
IFRS 16 Leases
IFRS 17 Insurance Contracts
Amendments to IFRS 9 Prepayment Features with Negative Compensation
Amendments to IAS 28 Long‑term Interests in Associates and Joint Ventures
Annual Improvements to IFRSs 2015–2017 Cycle mendments to IFRS 3 Business Combinations, IFRS 11 Joint
A
Arrangements, IAS 12 Income Taxes and IAS 23 Borrowing Costs
Amendments to IAS 19 Employee Benefits Plan Amendment, Curtailment or Settlement
IFRS 10 Consolidated Financial Statements and IAS 28 Sale or Contribution of Assets between an Investor and its
(amendments) Associate or Joint Venture
IFRIC 23 Uncertainty over Income Tax Treatments
IFRS 16 Leases
IFRS 16 introduces a comprehensive model for the identification of lease arrangements and accounting treatments for both
lessors and lessees. IFRS 16 will supersede the current lease guidance including IAS 17 Leases and the related interpretations
when it becomes effective for periods beginning on or after 1 January 2019. IFRS 16 distinguishes leases and service contracts
on the basis of whether an identified asset is controlled by a customer. Distinctions of operating leases (off balance sheet) and
finance leases (on balance sheet) are removed for lessee accounting, and are replaced by a model where a right-to-use asset
and a corresponding liability have to be recognised for all leases by lessees (i.e. all on balance sheet) except for short-term
leases and leases of low value assets.
The right-of-use asset is initially measured at cost and subsequently measured at cost (subject to certain exceptions) less
accumulated depreciation and impairment losses, adjusted for any remeasurement of the lease liability. The lease liability is
initially measured at the present value of the lease payments that are not paid at that date. Subsequently, the lease liability is
adjusted for interest and lease payments, as well as the impact of lease modifications, amongst others. Furthermore, the
classification of cash flows will also be affected as operating lease payments under IAS 17 are presented as operating cash
flows; whereas under the IFRS 16 model, the lease payments will be split into a principal and an interest portion which will be
presented as financing and operating cash flows respectively.
As at 31 December 2018, the Group has non‑cancellable operating lease commitments as shown in note 32. Some of these will
qualify as right‑of‑use asset. The Company is assessing the impact and do not expect a material impact on equity.
IFRS 17 Insurance Contracts
The new Standard establishes the principles for the recognition, measurement, presentation and disclosure of insurance
contracts and supersedes IFRS 4 Insurance Contracts. The Standard outlines a General Model, which is modified for insurance
contracts with direct participation features, described as the Variable Fee Approach. The General Model is simplified if certain
criteria are met by measuring the liability for remaining coverage using the Premium Allocation Approach.
The General Model will use current assumptions to estimate the amount, timing and uncertainty of future cash flows and it will
explicitly measure the cost of that uncertainty, it takes into account market interest rates and the impact of policyholders’ options
and guarantees.
The implementation of the Standard is unlikely to bring significant changes to an entity’s processes, systems and financial
statements as the Group does not hold insurance contracts.
The Standard is effective for annual reporting periods beginning on or after 1 January 2021, with early application permitted.


continued
3. Application of new and revised international financial reporting standards (IFRSs) continued
Amendments to IFRS 9 Prepayment Features with Negative Compensation
The amendments to IFRS 9 clarify that for the purpose of assessing whether a prepayment feature meets the SPPI condition,
the party exercising the option may pay or receive reasonable compensation for the prepayment irrespective of the reason for
prepayment. In other words, prepayment features with negative compensation do not automatically fail SPPI.
The amendment applies to annual periods beginning on or after 1st January 2019, with earlier application permitted.
There are specific transition provisions depending on when the amendments are first applied, relative to the initial application
of IFRS 9.
The Directors of the Company do not anticipate that the application of the amendments in the future will have an impact on the
Group’s consolidated financial statements.
Amendments to IAS 28 Long‑term Interests in Associates and Joint Ventures
The amendment clarifies that IFRS 9, including its impairment requirements, applies to long‑term interests. Furthermore, in applying
IFRS 9 to long‑term interests, an entity does not take into account adjustments to their carrying amount required by IAS 28
(i.e., adjustments to the carrying amount of long‑term interests arising from the allocation of losses of the investee or assessment
of impairment in accordance with IAS 28). The amendments apply retrospectively to annual reporting periods beginning on or
after 1st January 2019. Earlier application is permitted. Specific transition provisions apply depending on whether the first‑time
application of the amendments coincides with that of IFRS 9. The Directors of the Company do not anticipate that the application
of the amendments in the future will have an impact on the Group’s consolidated financial statements.
Annual Improvements to IFRSs 2015–2017 Cycle (Amendments to IFRS 3 Business Combinations, IFRS 11 Joint
Arrangements, IAS 12 Income Taxes and IAS 23 Borrowing Costs)
The Annual Improvements include amendments to four standards.
IAS 12 Income Taxes
The amendments clarify that an entity should recognise the income tax consequences of dividends in profit or loss, other
comprehensive income or equity according to where the entity originally recognised the transactions that generated the
distributable profits. This is the case irrespective of whether different tax rates apply to distributed and undistributed profits.
IAS 23 Borrowing Costs
The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use
or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on
general borrowings.
IFRS 3 Business Combinations
The amendments to IFRS 3 clarify that when an entity obtains control of a business that is a joint operation, the entity applies
the requirements for a business combination achieved in stages, including remeasuring its previously held interest (PHI) in the
joint operation at fair value. The PHI to be remeasured includes any unrecognised assets, liabilities and goodwill relating to the
joint operation.
IFRS 11 Joint Arrangements
The amendments to IFRS 11 clarify that when a party that participates in, but does not have joint control of, a joint operation
that is a business obtains joint control of such a joint operation, the entity does not remeasure its PHI in the joint operation.
All the amendments are effective for annual periods beginning on or after 1st January 2019 and generally require prospective
application. Earlier application is permitted.

01 02 03 04
Amendments to IAS 19 Employee Benefits Plan – Amendment, Curtailment or Settlement
The amendments clarify that the past service cost (or of the gain or loss on settlement) is calculated by measuring the defined
benefit liability/(asset) using updated assumptions and comparing benefits offered and plan assets before and after the plan
amendment (or curtailment or settlement) but ignoring the effect of the asset ceiling (that may arise when the defined benefit
plan is in a surplus position). IAS 19 is now clear that the change in the effect of the asset ceiling that may result from the plan
amendment (or curtailment or settlement) is determined in a second step and is recognised in the normal manner in other
comprehensive income.
The paragraphs that relate to measuring the current service cost and the net interest on the net defined benefit liability/(asset)
have also been amended. An entity will now be required to use the updated assumptions from this remeasurement to determine
current service cost and net interest for the remainder of the reporting period after the change to the plan. In the case of the net
interest, the amendments make it clear that for the period post plan amendment, the net interest is calculated by multiplying the
net defined benefit liability/(asset) as remeasured under IAS 19.99 with the discount rate used in the remeasurement (also taking
into account the effect of contributions and benefit payments on the net defined benefit liability/(asset)).
The amendments are applied prospectively. They apply only to plan amendments, curtailments or settlements that occur on or
after the beginning of the annual period in which the amendments to IAS 19 are first applied.
The amendments to IAS 19 must be applied to annual periods beginning on or after 1st January 2019, but they can be applied
earlier if an entity elects to do so.
The Directors of the Company do not anticipate that the application of the amendments in the future will have an
impact on the Group’s consolidated financial statements.
IFRS 10 Consolidated Financial Statements and IAS 28 (amendments) Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture
The amendments to IFRS 10 and IAS 28 deal with situations where there is a sale or contribution of assets between an investor
and its associate or joint venture. Specifically, the amendments state that gains or losses resulting from the loss of control of a
subsidiary that does not contain a business in a transaction with an associate or a joint venture that is accounted for using the
equity method are recognised in the parent’s profit or loss only to the extent of the unrelated investors’ interests in that associate
or joint venture. Similarly, gains and losses resulting from the remeasurement of investments retained in any former subsidiary
(that has become an associate or a joint venture that is accounted for using the equity method) to fair value are recognised in
the former parent’s profit or loss only to the extent of the unrelated investors’ interests in the new associate or joint venture.
The effective date of the amendments has yet to be set by the IASB; however, earlier application of the amendments is permitted.
The Directors of the Company anticipate that the application of these amendments may have an impact on the Group's consolidated
financial statements in future periods should such transactions arise. The Directors of the Company do not anticipate that the
application of the amendments in the future will have an impact on the Group’s consolidated financial statements.
IFRIC 23 Uncertainty over Income Tax Treatments
IFRIC 23 sets out how to determine the accounting tax position when there is uncertainty over income tax treatments.
The interpretation requires an entity to:
• determine whether uncertain tax positions are assessed separately or as a group; and
• assess whether it is probable that a tax authority will accept an uncertain tax treatment used, or proposed to be used, by an
entity in its income tax filings:
• if yes, the entity should determine its accounting tax position consistently with the tax treatment used or planned to be
used in its income tax filings; and
• if no, the entity should reflect the effect of uncertainty in determining its accounting tax position.
The interpretation is effective for annual periods beginning on or after 1st January 2019. Entities can apply the Interpretation
with either full retrospective application or modified retrospective application without restatement of comparatives retrospectively
or prospectively.


continued
4. Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with IFRSs requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates. The management of the Group revises its estimates and assumptions on a regular
basis to ensure that they are relevant regarding the past experience and the current economic and political environment.
Estimates and underlying assumptions are reviewed on an on going basis. Revisions to accounting estimates are recognised in
the period in which the estimates are revised and in any future periods affected. The accounting for certain provisions, certain
financial instruments and the disclosure of financial assets, contingent assets and liabilities at the date of the consolidated and
separate financial statements are judgemental. The items, subject to judgement, are detailed in the corresponding notes to the
consolidated and separate financial statements.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies
that have the most significant effect on the amount recognised in the financial statements are discussed below:
4.1 Critical accounting judgements
4.1.1 Control over subsidiaries
Note 17 describes that Dangote Quarries Zambia Limited is a subsidiary of the Group although the Group only holds a 49.9%
ownership interest in Dangote Quarries Zambia Limited. Based on the arrangements between the Group and other investors,
the Group has the power to appoint and remove the majority of the board of directors of Dangote Quarries Zambia Limited that
has the power to direct the relevant activities of this entity. Therefore, the Directors of the Company concluded that the Group has
the practical ability to direct the relevant activities of Dangote Quarries Zambia and hence the Group has control over the entity.
4.1.2 Tax holiday
The Directors of the Company have assessed whether the operations in Ibese production lines 3 and 4 and Obajana production
line 4 are entitled to tax relief under the Pioneer Status Incentive (PSI). These production lines have already received Nigerian
Investment Promotion Commission (NIPC) approval for the initial three years’ tax holiday and the Company has applied for
additional two years extension. While NIPC approval is yet to be obtained, the Directors’ strong view, supported by historical
practise, is that the Company has complied in full with the requirements of the Pioneer Status Incentive and is entitled to the
two years extension. The tax benefit taken on the basis that the Company is entitled to two years extension under the Pioneer
Incentive Scheme is ₦43.3 billion.
4.2 Key sources of estimation uncertainty
4.2.1 Estimated useful lives and residual values of property, plant and equipment
The Group’s management determines the estimated useful lives and related depreciation charge for its items of property, plant
and equipment on an annual basis. The Group has carried out a review of the residual values and useful lives of property, plant
and equipment as at 31st December 2018 and no adjustments done to the the remaining useful lives of assets.
4.2.2 Valuation of deferred tax
The recognition of deferred tax assets requires an assessment of future taxable profit. Deferred tax assets are only recognised to
the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.
The availability of future taxable profits depends on several factors including the Group’s future financial performance and, if
necessary, implementation of tax planning strategies.

01 02 03 04
5. Revenue (tonnes)
Group Company
2018 2017 2018 2017
’000 tonnes ’000 tonnes ’000 tonnes ’000 tonnes
Cement production and bagging capacity (for the year) 45,550 45,550 29,250 29,250
Cement production volume 22,798 21,224 14,280 12,828
Trade cement purchase 877 1,180 — —
Increase in stock of cement (140) (489) (102) (104)
Cement sales volume 23,535 21,915 14,178 12,724
Group Company
31/12/2018 31/12/2017 31/12/2018 31/12/2017
Revenue (Naira)
Revenue from sales of cement 900,927 805,294 618,301 552,364
Revenue from sales of other products 286 288 — —
901,213 805,582 618,301 552,364
Revenue after adjusting intra-group sales as shown above are from external customers.
5.1. Information about major customers
Included in revenue arising from direct sales of cement of ₦900.9 billion (2017: ₦805.3 billion) is revenue of approximately
₦31.61 billion (2017: ₦35.7 billion) which arose from sales to the Group's largest customer.
6. Segment information
6.1 Products and services from which reportable segments derive their revenue
The Executive Management Committee is the Company’s Chief Operating Decision Maker. Management has determined
operating segments based on the information reported and reviewed by the Executive Management Committee for the purposes
of allocating resources and assessing performance. The Executive Management Committee reviews internal management
reports on at least a quarterly basis. These internal reports are prepared on the same basis as the accompanying consolidated
and separate financial statements.
Segment information is presented in respect of the Group’s reportable segments. For management purposes, the Group is
organised into business units by geographical areas in which the Company operates. The Company has two reportable
segments based on location of the principal operations as follows:
• Nigeria; and
• Pan Africa
6.2 Segment revenue and results
The following is an analysis of the Group's revenue, results, assets and liabilities by reportable segment. Performance is
measured based on segment sales revenue, earnings before interest, tax, depreciation and amortisation (EBITDA) and profit
from operating activities, as included in the internal management reports that are reviewed by the Executive Management
Committee. Segment 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 the industry.


continued
6. Segment information continued

6.2 Segment revenue and results continued
The following is an analysis of the Group's revenue and results by reportable segment:
2018
Central
Pan administrative
Nigeria Africa costs Eliminations Total
Segment results ₦'million ₦'million ₦'million ₦'million ₦'million
Revenue 618,301 283,262 — (350) 901,213

EBITDA* 397,377 49,062 (11,178) — 435,261
Depreciation, amortisation and impairment 51,809 46,568 — (1,814) 96,563
Operating profit/(loss) 345,568 2,494 (11,178) 1,814 338,698
Other income 3,783 6,439 — — 10,222
Finance income 79,378 3,740 — (71,795) 11,323
Finance costs 22,565 94,980 — (67,767) 49,778
Profit/(loss) after tax 491,615 (87,89 9) (11,178) (2,213) 390,325
Segment assets and liabilities
Non-current assets 1,329,488 684,772 — (748,635) 1,265,625
Current assets 441,025 180,507 — (192,694) 428,838
Total assets 1,770,513 865,279 — (941,329) 1,694,463
Segment liabilities 478,753 979,835 — (750,738) 707,850
Net additions to non-current assets, excluding
deferred tax 108,503 (6,324) — (102,135) 44
* Represents earnings before interest, tax, depreciation and amortisation.

2017
Central
administrative
Nigeria Pan Africa costs Eliminations Total
Segment results ₦'million ₦'million ₦'million ₦'million ₦'million
Revenue 552,364 258,444 — (5,226) 805,582

EBITDA* 360,759 38,276 (10,888) — 388,147
Depreciation and amortisation 43,959 40,506 — (526) 83,939
Operating profit/(loss) 316,800 (2,230) (10,888) 526 304,208
Other income 3,386 1,827 — — 5,213
Finance income 71,286 4,939 — (40,299) 35,926
Finance costs 35,035 40,356 — (22,680) 52,711
Profit/(loss) after tax 265,528 (12,773) (10,888) (37,619 ) 204,248
Segment assets and liabilities
Non-current assets 1,213,098 688,986 — (646,500) 1,255,584
Current assets 426,869 164,727 — (181,297) 410,299
Total assets 1,639,967 853,713 — (827,797) 1,665,883
Segment liabilities 649,505 873,906 — (638,888) 884,523
Net additions to non-current assets, excluding
deferred tax (72,344) 60,266 — 62,403 50,325
* Represents earnings before interest, tax, depreciation and amortisation.

01 02 03 04

6.2 Segment revenue and results continued
The accounting policies of the reportable segments are the same as the Group's accounting policies described in note 2. Each
segment bears its administrative costs and there are no allocations from central administration. This is the measure reported to
the Chief Operating Decision Maker for the purposes of resource allocation and assessment of segment performance. Group
financing (including finance income and finance costs) and income taxes are managed at an individual company level.
A reconciliation of earnings before interest, tax, depreciation and amortisation (EBITDA) is presented below:
Year ended Year ended
31/12/2018 31/12/2017
₦'million ₦'million
EBITDA 435,261 388,147

Depreciation and amortisation and impairment (96,563) (83,939)
Profit from operating activities 338,698 304,208
Finance income 11,323 35,926
Finance cost (49,778) (52,711)
Share of profit from associates 563 2,167
Profit before tax 300,806 289,590
Income tax credit/(expense) 89,519 (85,342)
Profit after tax 390,325 204,248
Significant non-current assets by country excluding deferred tax

2018 2017
₦'million ₦'million
Nigeria 1,314,927 1,206,424

South Africa 64,034 84,249
Senegal 85,664 86,257
Zambia 75,774 90,019
Ethiopia 87,506 89,137
Tanzania 149,635 121,440
Congo 97,194 99,796
Cameroon 39,867 41,114

Ghana 13,129 18,373
Sierra Leone 16,725 16,993
Côte d'Ivoire 22,489 14,200
Significant revenue by country (external customers)

Nigeria 617,951 547,138
Ghana 25,372 28,066
South Africa 58,993 57,302
Ethiopia 51,427 54,527
Zambia 33,121 25,145
Tanzania 19,473 16,650
Senegal 34,986 28,750
Cameroon 48,709 43,186
Sierra Leone 3,658 2,950
Congo 7,519 1,017
Revenues are attributed to individual countries based on the geographical location of external customers.


continued

6.3 Eliminations and adjustments
Elimination and adjustments relate to the following:
• Profit/(loss) after tax of ₦2.2 billion (2017: ₦37.6 billion) is due to elimination of interest on inter-company loan, trading
activities and exchange differences reclassified to other comprehensive income.
• Non-current assets of ₦748.6 billion (2017: ₦646.5 billion) are due to the elimination of investment in subsidiaries with the
parent’s share of their equity and non current inter-company payable and receivable balances.
• Current assets of ₦192.7 billion (2017: ₦181.3 billion) are due to the elimination of current inter-company payable and
receivable balances.
• Total liabilities of ₦750.7 billion (2017: ₦638.9 billion) are due to the elimination of inter-company due to and due
from subsidiaries.
• Finance income of ₦71.8 billion (2017: ₦40.3 billion) and finance cost of ₦67.8 billion (2017: ₦22.7 billion) is due to the
elimination of interest on inter-company loan and exchange differences reclassified to other comprehensive income.
• Revenue of ₦350 million (2017: ₦5.2 billion) represents sales by the Nigeria region to the Pan Africa region.
In addition to the depreciation and amortisation reported above, a sum of ₦360 million (2017: ₦287 million) in the financial statements
represents write off/impairment in respect of property, plant and equipment. This was attributable to Pan African operations.
7. Production cost of sales

Group Company
31/12/2018 31/12/2017 31/12/2018 31/12/2017
Material consumed 122,581 111,559 36,173 31,942

Fuel and power consumed 133,528 111,569 71,814 64,070
Royalty 1,134 1,136 677 655
Salaries and related staff costs 31,557 26,713 16,593 14,565
Depreciation and amortisation 64,544 59,598 34,237 32,435
Plant maintenance 29,562 26,848 8,149 10,848
Other production expenses 9,199 14,653 4,197 6,314
Increase in finished goods and work in progress (8,794) (786) (1,552) (2,235)
383,311 351,290 170,288 158,594
Royalty payable is charged based on volume of extraction made during the year.

01 02 03 04
8. Administrative expenses
Group Company
31/12/2018 31/12/2017 31/12/2018 31/12/2017

Corporate social responsibility 2,260 1,562 1,446 974
Management fee (refer to (a) below) 3,627 3,853 3,627 3,853
Depreciation and amortisation 6,087 5,529 2,209 1,897
Auditors’ remuneration (refer to (b) below) 539 508 293 305
Directors' remuneration 1,116 1,071 1,116 1,062
Rent, rate and insurance 5,341 3,918 2,069 1,301
Repairs and maintenance 1,528 1,083 1,130 825
Travel expenses 2,996 2,041 1,461 901
Bank charges 2,205 1,222 1,049 415
Professional and consultancy fees 2,650 3,550 1,841 2,620
General administrative expenses 7,883 5,003 3,909 1,521
Others 4,586 3,377 1,617 380
Write off and impairment of property, plant and equipment 360 287 — 197
52,501 45,380 27,108 22,571
(a) The management fee is charged by Dangote Industries Limited for management and corporate services provided to Dangote
Cement Plc. It is an apportionment of the parent company's shared services to all its significant subsidiaries.
(b) Auditors' remuneration is detailed in the table below:
Group Company
31/12/2018 31/12/2017 31/12/2018 31/12/2017
Audit fees 481 402 255 215

Limited review of quarterly financial statements* 41 37 21 21
Review of financial statement for specific transactions* — 69 — 69
Sustainability and controls review* 17 — 17 —
539 508 293 305
* This was paid to the joint external auditors, Deloitte and Touche.
Other employee-related disclosures

Group Company
31/12/2018 31/12/2017 31/12/2018 31/12/2017
Aggregate payroll costs:

Wages, salaries and staff welfare 55,164 47,253 31,538 26,936
Pension costs 2,117 2,707 1,075 1,826
57,281 49,960 32,613 28,762


continued
8. Administrative expenses continued

Chairman’s and Directors’ remuneration
Group Company
31/12/2018 31/12/2017 31/12/2018 31/12/2017
Directors’ remuneration comprises:

Fees 57 49 57 49
Emoluments 1,059 1,022 1,059 1,013
1,116 1,071 1,116 1,062
Chairman 48 39 48 35
Highest paid Director 429 407 429 407
Number of Directors whose emoluments were within the following ranges:

₦–₦
1–3,200,000 — — — —
3,200,001–8,750,000 1 — 1 —
8,750,001–20,000,000 2 — 2 —
Above 20,000,000 13 14 13 14
16 14 16 14
Permanent employees remunerated at higher rate excluding allowances:

₦–₦
Up to 250,000 8,041 6,346 6,906 4,936

250,001–500,000 4,708 4,924 4,417 4,727
500,001–750,000 1,106 1,469 928 1,403
750,001–1,000,000 924 943 867 884
1,000,001–1,250,000 620 489 558 474
1,250,001–1,500,000 192 186 147 155
1,500,001–2,000,000 322 273 250 143
2,000,001 and above 880 716 196 321
16,793 15,346 14,269 13,043
The average number of permanent employees employed during the year excluding Directors was as follows:
Management 592 489 362 338
Non-management 15,272 14,170 12,998 11,992
15,864 14,659 13,360 12,330

01 02 03 04
9. Selling and distribution expenses

Group Company
31/12/18 31/12/17 31/12/18 31/12/17

Depreciation 25,572 18,812 15,363 9,627
Advertisement and promotion 3,990 2,199 2,987 1,429
Haulage expenses 88,040 74,653 56,741 46,537
Others 4,922 3,382 3,508 3,213
136,925 109,917 89,278 68,683
10. Finance income and finance costs

Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Finance income
Interest income 11,323 9,136 37,705 36,383
Others –foreign exchange gain — 26,790 41,673 34,903
11,323 35,926 79,378 71,286
Finance costs
Interest expenses 41,413 52,101 22,312 34,425
Less: amounts included in the cost of qualifying assets — — — —
41,413 52,101 22,312 34,425
Foreign exchange loss 8,112 — — —
Other finance costs 253 610 253 610
49,778 52,711 22,565 35,035
The average effective interest rate on funds borrowed generally is 11.14% and 11.28% per annum for Group and Company
respectively (2017: 13.26% per annum for Group and 13.07% per annum for Company). These are the rates used for the
capitalisation on qualifying assets.
11. Other income

Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Insurance claims 982 411 730 219

Government grant (note 25.1) 2,368 376 2,336 346
Sundry income 6,872 4,426 717 2,821
10,222 5,213 3,783 3,386
Government grant includes ₦2.06 billion Export Expansion Grant (EEG) on export sales for 2014–2017 in both Group and Company.
Sundry income includes ₦3.4 billion for provisions reversed which are no longer necessary.


continued
12. Profit for the year

Profit for the year includes the following charges:
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Depreciation of property, plant and equipment 95,578 83,377 51,793 43,862

Amortisation of intangible assets 625 562 16 97
Auditors’ remuneration 539 508 293 305
Employee benefits expense 57,281 49,960 32,613 28,762
Loss on disposal of property, plant and equipment 459 58 5 58
13. Earnings per share

The earnings and weighted average number of ordinary shares used in the calculation of basic and diluted earnings per share
are as follows:
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Profit for the year attributable to owners of the Company 388,983 198,585 481,456 254,630
Weighted average number of ordinary shares for the purposes
of basic and diluted earnings per share 17,041 17,041 17,041 17,041
Basic and diluted earnings per share (Naira) 22.83 11.65 28.25 14.94
14. Income taxes

14.1 Income tax recognised in profit or loss
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Current tax
Current tax (10,468) (49,061) (8,981) (48,447)
Prior year over provision (refer to note 14.1.1) 53,869 — 53,869 —
43,401 (49,061) 44,888 (48,447)
Deferred tax
Deferred tax 46,118 (36,281) 44,345 (39,076)
Total income tax credit/(charge) recognised 89,519 (85,342) 89,233 (87,523)

01 02 03 04
14. Income taxes continued

14.1 Income tax recognised in profit or loss continued
The income tax credit/(expense) for the year can be reconciled to the accounting profit as follows:
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Profit before income tax 300,806 289,590 392,223 342,153

Income tax expense calculated at 30% (2017: 30%) (90,242) (86,877) (117,667) (102,646)
Education tax (3,765) (6,271) (3,765) (6,271)
Effect of tax holiday and income that is exempt from taxation 56,980 19,977 55,774 11,264
Effect of expenses that are not deductible in determining
taxable profit (384) (638) (324) (550)
Effect of previously unrecognised temporary difference
now recognised as deferred tax assets 2,457 5,145 — —
Effect of previously recognised temporary difference
now derecognised as deferred tax assets (6,898) — — —
Effect of deferred tax not recognised on net investment
exchange gains 7,563 — 17,596 9,692
Effect of prior year over provision (refer to note 14.1.1) 133,717 — 133,717 —
Effect of investment allowance 2,382 — 2,382 —
Effect of income taxed at different rates 1,586 2,570 1,586 2,570
Effect of unused tax losses and offsets not recognised
as deferred tax assets (15,059) (16,815) — —
Effect of different tax rates of subsidiaries operating
in other jurisdictions 1,234 (809) — —
Other (52) (1,624) (66) (1,582)
Income tax income credit/(charge) recognised in profit or loss 89,519 (85,342) 89,233 (87,523)
The income tax rate of 30% was used for the Company tax computation as established by the tax legislation of Nigeria effective
in 2018 and 2017. The income tax rate in South Africa is 28% and 38.5% for Cameroon.
14.1.1
In prior years, we made a tax provision on profits earned from Ibese production lines 3 & 4 and Obajana production line 4 on
the basis that they were yet to obtain approval for tax exemptions under the Pioneer Status Incentive. Approval was obtained
in December 2018 and the provision was reversed.
14.2.1 Current tax receivables
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Balance at the beginning of the year 59 9 — —

Charge for the year (42) (500) — —
Payments during the year (15) 595 — —
Other receivables* 6,211 — 6,211 —
Effect of currency exchange difference — (45) — —
Balance at the end of the year 6,213 59 6,211 —
* Other receivables represents tax credit from government for infrastructure development.


continued

14.2.2 Current tax payables
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Balance at the beginning of the year 63,901 18,220 63,787 17,852

Charge for the year (43,443) 48,561 (44,888) 48,447
Payments during the year (11,178) (2,618) (10,291) (2,512)
Effect of currency exchange difference (57) (262) — —
Balance at the end of the year 9,223 63,901 8,608 63,787
14.3 Deferred tax balance

Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Deferred tax assets 40,622 30,625 14,561 6,674

Deferred tax liabilities (83,350) (116,89 8) (80,033) (116,491)
Net deferred tax liabilities (42,728) (86,273) (65,472) (109,817)
Group
Recognised Effect of
Opening in profit currency Closing
balance or loss translation balance
2018 ₦’million ₦’million ₦’million ₦’million
Deferred tax assets/(liabilities) in relation to:

Property, plant and equipment (144,431) 87,267 2,003 (55,161)
Unrealised exchange gains (14,598) 7,297 (476) (7,777)
Provision 508 (124) 6 390
Tax losses 72,248 (48,322) (4,106) 19,820
(86,273) 46,118 (2,573) (42,728)
Recognised Effect of
Opening in profit currency Closing
balance or loss translation balance
2017 ₦’million ₦’million ₦’million ₦’million

Property, plant and equipment (94,616) (46,825) (2,990) (144,431)
Unrealised exchange gains (11,09 6) (2,447) (1,055) (14,598)
Provision 580 316 (388) 508
Tax losses 53,276 12,675 6,297 72,248
(51,856) (36,281) 1,864 (86,273)

01 02 03 04

14.3 Deferred tax balance continued
Company
Recognised
Opening in profit Closing
balance or loss balance
2018 ₦’million ₦’million ₦’million

Property, plant and equipment (104,668) 47,152 (57,516)
Unrealised exchange gains (5,993) (2,665) (8,658)
Provision 844 (142) 702
(109,817) 44,345 (65,472)
Recognised
Opening in profit Closing
balance or loss balance
2017 ₦’million ₦’million ₦’million

Property, plant and equipment (60,942) (43,726) (104,668)
Unrealised exchange gains (10,716) 4,723 (5,993)
Provision 917 (73) 844
(70,741) (39,076) (109,817)
Tax authorities in various jurisdictions where we operate reserve the right to audit the tax charges for the financial year ended
31st December 2018 and prior years. In cases where tax audits have been carried out and additional charges levied, we have
responded to the tax authorities challenging the technical merits and made a provision we consider appropriate in line with the
technical merits of issues raised by tax authorities.
Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets have been
recognised are attributable to the following:
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Tax losses 36,391 9,462 — —

Unused tax credits 184 13,026 — —
Deductible temporary differences 2,087 — — —
38,662 22,488 — —
The unrecognised tax credits will expire as follows:

Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Year 1 1,788 — — —
Year 2 1,910 10,944 — —
Year 3 2,185 7,096 — —
Year 4 — — — —
Year 5 — — — —
After year 5 — — — —
No expiry date 32,779 4,448 — —
38,662 22,488 — —
Deferred tax liability amounting to ₦26.4 billion (2017: ₦22.7 billion) for both Group and Company was not recognised. This
relates to exchange on inter-company loans classified as part of the net investment in subsidiaries.


continued

14.3 Deferred tax balance continued
The pioneer status of line 3 of our Obajana plant expired in 2017. In determining the tax liability, the Directors have exercised the
right of election in line with the commencement rule in Part IV of CITA 2004 which implies that the Company will be assessed on
an actual year basis for tax. This may result in a higher effective tax rate for the 2020 Financial Year.
15. Property, plant and equipment

15.1 The Group
Leasehold Capital
improvements Plant and Motor Furniture and work in
and buildings machinery vehicles Aircraft equipment progress Total
₦’million ₦’million ₦’million ₦’million ₦’million ₦’million ₦’million
Cost
Balance at 1st January 2017 153,868 904,379 144,973 4,028 7,251 181,507 1,396,006
Additions 955 5,050 11,921 — 409 67,286 85,621
Reclassifications (note 15.1.1) 49,205 114,627 16,749 — 1,666 (182,247) —
Other reclassifications (note 15.1.2) — (347) (15,225) — — (8) (15,580)
Disposal (note 15.1.3) — (23) (2,173) — (272) — (2,468)
Write-off — — (238) — (22) — (260)
Effect of currency exchange differences 14,867 20,518 4,295 — 411 15,614 55,705
Balance at 31st December 2017 218,895 1,044,204 160,302 4,028 9,443 82,152 1,519,024
Additions 9,548 14,115 702 — 291 63,967 88,623
Reclassifications (note 15.1.1) 1,405 13,796 7,480 — 794 (23,475) —
Other reclassifications (note 15.1.2) (3,177) 1,186 (391) — — (3,883) (6,265)
Disposal (note 15.1.3) — (285) (271) — — (146) (702)
Effect of currency
exchange differences 2,688 (13,498) (302) — (103) 1,498 (9,717)
Balance at 31st December 2018 229,359 1,059,518 167,520 4,028 10,425 120,113 1,590,963
Accumulated depreciation
and impairment
Balance at 1st January 2017 15,978 158,327 62,246 1,117 2,627 — 240,295
Depreciation expense 7,437 47,721 26,793 403 1,023 — 83,377
Reclassifications 898 28 (926) — — — —
Other reclassifications (note 15.1.2) — — (12) — — — (12)
Disposal (note 15.1.3) — (17) (2,121) — (272) — (2,410)
Impairment (note 15.1.4) 1 62 (18) — (18) — 27
Effect of currency exchange differences 914 3,245 1,239 — 209 — 5,607
Balance at 31st December 2017 25,228 209,366 87,201 1,520 3,569 — 326,884
Depreciation expense 8,776 51,499 33,718 403 1,182 — 95,578
Other reclassifications (note 15.1.2) (202) — — — — — (202)
Disposal (note 15.1.3) — (9) (234) — — — (243)
Impairment (note 15.1.4) — 24 336 — — — 360
Effect of currency exchange differences 162 (3,111) (251) — (78) — (3,278)
Carrying amounts
At 31st December 2017 193,667 834,838 73,101 2,508 5,874 82,152 1,192,140
At 31st December 2018 195,395 801,749 46,750 2,105 5,752 120,113 1,171,864

01 02 03 04
15. Property, plant and equipment continued

15.1 The Group continued
15.1.1 Represents assets transferred from capital work in progress on completion.
15.1.2 Represents amount transferred to/from non current prepayment, inventories, customers, related parties and intangible assets.
15.1.3 Represents motor trucks and equipment disposed of.
15.1.4 Represents impairment of motor trucks and equipment during the year.
15.1.5 Some borrowings are secured by a debenture on all the fixed and floating assets (note 25).
15.2 The Company
Leasehold Capital
improvements Plant and Motor Furniture and work in
and buildings machinery vehicles Aircraft equipment progress Total
₦’million ₦’million ₦’million ₦’million ₦’million ₦’million ₦’million
Cost
Balance at 1st January 2017 47,595 548,521 83,015 4,028 2,080 68,502 753,741
Additions — 3,061 92 — 5 37,312 40,470
Reclassifications (note 15.2.1) 2,709 47,525 20,668 — 1,096 (71,998) —
Other reclassifications (note 15.2.2) — — (15,420) — — — (15,420)
Disposal (note 15.2.3) — (23) (2,173) — (272) — (2,468)
Write-off — — (197) — — — (197)
Balance at 31st December 2017 50,304 599,084 85,985 4,028 2,909 33,816 776,126
Additions 4 7,545 — — 87 34,509 42,145
Reclassifications (note 15.2.1) 1,122 13,720 6,544 — 505 (21,891) —
Other reclassifications (note 15.2.2) — (41) (391) — — (3,943) (4,375)
Disposal (note 15.2.3) — — (239) — — — (239)
Balance at 31st December 2018 51,430 620,308 91,899 4,028 3,501 42,491 813,657
Accumulated depreciation
and impairment
Balance at 1st January 2017 9,589 124,705 47,830 1,117 1,483 — 184,724
Depreciation expense 2,009 27,402 13,653 403 395 — 43,862
Other reclassifications (note 15.2.2) — — (12) — — — (12)
Disposal (note 15.2.3) — (17) (2,121) — (272) — (2,410)
Depreciation expense 2,028 28,588 20,230 403 544 — 51,793
Disposal (note 15.2.3) — — (234) — — — (234)
Carrying amounts
At 31st December 2017 38,706 446,994 26,635 2,508 1,303 33,816 549,962
At 31st December 2018 37,804 439,630 12,553 2,105 1,351 42,491 535,934
15.2.1 Represents assets transferred from capital work in progress on completion.

15.2.2 Represents amount transferred to inventories, customers and related parties.
15.2.3 Represents motor trucks and equipment disposed of.
15.2.4 Some borrowings are secured by a debenture on all the fixed and floating assets (note 25).


continued
16. Intangible assets

Group
Computer Exploration
software assets Total
₦’million ₦’million ₦’million
Cost
Balance at 1st January 2017 3,856 2,212 6,068
Additions 243 1,396 1,639
Reclassifications from property, plant and equipment (refer to note 15.1.2) 8 347 355
Effect of foreign currency differences 464 464 928
Balance at 31st December 2017 4,571 4,419 8,990
Additions 254 542 796
Effect of foreign currency differences (85) (616) (701)
Balance at 31st December 2018 4,740 4,345 9,085
Amortisation
Balance at 1st January 2017 1,859 64 1,923
Amortisation expense 495 67 562
Effect of foreign currency differences 134 16 150
Balance at 31st December 2017 2,488 147 2,635
Amortisation expense 519 106 625
Effect of foreign currency differences (114) (30) (144)
Balance at 31st December 2018 2,893 223 3,116
Carrying amounts
At 31st December 2017 2,083 4,272 6,355
At 31st December 2018 1,847 4,122 5,969
Intangible assets (computer software) represent software which have useful life of four years and amortized on a straight line
basis over these years.
There is no development expenditure capitalised as an internally generated intangible asset.

01 02 03 04
16. Intangible assets continued

Company
Computer Exploration
software assets Total
₦’million ₦’million ₦’million
Cost
Balance at 1st January 2017 1,306 — 1,306
Additions 21 — 21
Balance at 31st December 2017 1,327 — 1,327
Additions 27 — 27
Amortisation
Balance at 1st January 2017 1,193 — 1,193
Amortisation expense 97 — 97
Amortisation expense 16 — 16
Carrying amounts
At 31st December 2017 37 — 37
At 31st December 2018 48 — 48
There is no development expenditure capitalised as an internally generated intangible asset.
17. Information regarding subsidiaries and associate

17.1 Subsidiaries
Details of the Group's subsidiaries at the end of the reporting period are as follows:
Proportion of ownership or
Place of
voting power held by the Group
incorporation
Name of subsidiary Principal activity and operation 31/12/18 31/12/17
Dangote Cement South Africa (Pty) Limited Cement production South Africa 64.00% 64.00%
Dangote Industries (Ethiopia) Plc Cement production Ethiopia 99.97% 99.97%
Dangote Cement Zambia Limited Cement production Zambia 99.96% 75.00%
Dangote Cement Senegal S.A. Cement production Senegal 99.99% 99.99%
Dangote Cement Cameroon S.A. Cement grinding Cameroon 99.97% 99.97%
Dangote Mines Limited, Tanzania Cement production Tanzania 99.70% 99.70%
Dangote Cement Congo S.A Cement production Congo 100.00% 100.00%
Dangote Cement (Sierra Leone) Limited Bagging and distribution of cement Sierra Leone 99.60% 99.60%
Dangote Cement Côte d'Ivoire S.A. Cement grinding Côte d'Ivoire 80.00% 80.00%
Dangote Industries Gabon S.A. Cement grinding Gabon 80.00% 80.00%
Dangote Cement Ghana Limited Bagging and distribution of cement Ghana 100.00% 100.00%
Dangote Cement – Liberia Ltd. Bagging and distribution of cement Liberia 100.00% 100.00%
Dangote Cement Burkina Faso S.A. Selling and distribution of cement Burkina Faso 95.00% 95.00%
Dangote Cement Chad S.A. Selling and distribution of cement Chad 95.00% 95.00%
Dangote Cement Mali S.A. Selling and distribution of cement Mali 95.00% 95.00%


continued
17. Information regarding subsidiaries and associate continued

17.1 Subsidiaries continued
Proportion of ownership or
Place of
voting power held by the Group
incorporation
Name of subsidiary Principal activity and operation 31/12/18 31/12/17
Dangote Cement Niger SARL Selling and distribution of cement Niger 95.00% 95.00%
Dangote Industries Benin S.A. Selling and distribution of cement Benin 98.00% 98.00%
Dangote Cement Togo S.A. Selling and distribution of cement Togo 90.00% 90.00%
Dangote Cement Kenya Limited Cement production Kenya 90.00% 90.00%
Dangote Quarries Kenya Limited Limestone mining Kenya 90.00% 90.00%
Dangote Cement Madagascar Limited Cement production Madagascar 95.00% 95.00%
Dangote Quarries Mozambique Limitada Cement production Mozambique 95.00% 95.00%
Dangote Cement Nepal Pvt. Limited Cement production Nepal 100.00% 100.00%
Dangote Zimbabwe Holdings (Private) Limited Investment holding Zimbabwe 90.00% 90.00%
Dangote Cement Zimbabwe (Private) Limited Cement production Zimbabwe 90.00% 90.00%
Dangote Energy Zimbabwe (Private) Limited Power production Zimbabwe 90.00% 90.00%
Dangote Mining Zimbabwe (Private) Limited Coal production Zimbabwe 90.00% 90.00%
Dangote Cement Guinea S.A. Cement production Guinea 95.00% 95.00%
Cimenterie Obajana Sprl- D.R. Congo Cement production D.R. Congo 98.00% 98.00%
Itori Cement Plc. Cement production Nigeria 99.00% 99.00%
Okpella Cement Plc. Cement production Nigeria 99.00% 99.00%
Dangote Takoradi Cement Production Limited Cement grinding Ghana 99.00% 99.00%
Dangote Cement Yaounde Cement grinding Cameroon 90.00% 90.00%
Dangote Cement Congo D.R. S.A. Cement production D.R. Congo 99.00% 99.00%
DCP Cement Limited Cement production Nigeria 90.00% —
Dangote Cement Limited, Tanzania Cement production Tanzania 99.70% —
Dangote Contracting Services Limited, Contracting services Tanzania 99.70% —
Tanzania
Indirect subsidiaries
Dangote Cement South Africa (Pty) Limited subsidiaries
Sephaku Development (Pty) Ltd Mining right holder South Africa 100.00% 100.00%
Sephaku Delmas Properties (Pty) Ltd Investment property South Africa 100.00% 100.00%
Blue Waves Properties 198 (Pty) Ltd Exploration South Africa 100.00% 100.00%
Sephaku Limestone and Exploration (Pty) Ltd Exploration South Africa 80.00% 80.00%
Sephaku Enterprise Development (Pty) Ltd Cement production South Africa 100.00% 100.00%
Portion 11 Klein Westerford Properties (Pty) Ltd Investment property South Africa 100.00% 100.00%
Dangote Cement Zambia Limited subsidiary
Dangote Quarries (Zambia) Limited Limestone mining Zambia 49.90% 49.90%
Dangote Fuels Zambia Limited Selling and distribution of fuels Zambia 99.00% —
Dangote Cement Nepal Pvt. Limited subsidiary
Birat Cement Pvt. Limited Cement production and distribution Nepal 100.00% 100.00%

01 02 03 04

17.2 Investments in subsidiaries
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Dangote Cement South Africa (Pty) Limited — — 27,922 27,922

Dangote Industries (Ethiopia) Plc — — 40,036 40,036
Dangote Cement Zambia Limited — — 106 —
Dangote Cement Senegal S.A. — — 64,782 64,782
Dangote Cement Cameroon S.A. — — 15,160 15,160
Dangote Cement Ghana Limited — — — —
Dangote Mines Limited, Tanzania — — 13,851 13,851
Dangote Cement Congo S.A. — — 3 3
Dangote Cement (Sierra Leone) Limited — — 18 18
Dangote Cement Cote d'Ivoire S.A. — — 16 16
Dangote Industries Gabon S.A. — — 6 6
Dangote Cement Burkina faso S.A. — — 3 3
Dangote Cement Chad S.A. — — 3 3
Dangote Cement Mali S.A. — — 3 3
Dangote Cement Niger SARL — — 5 5
Dangote Industries Benin S.A. — — 3 3
Dangote Cement Togo S.A. — — 5 5
Dangote Takoradi Cement Production Limited — — 141 141
Dangote Cement Madagascar Limited — — 2 —
Dangote Cement Congo D.R. S.A — — 6 —
Dangote Cement – Liberia Ltd. — — — —
Dangote Cement Kenya Limited — — — —
Dangote Quarries Kenya Limited — — — —
Dangote Quarries Mozambique Limitada — — — —
Dangote Cement Nepal Pvt. Ltd. — — — —
Dangote Zimbabwe Holdings (Private) Limited — — — —
Dangote Cement Zimbabwe (Private) Limited — — — —
Dangote Energy Zimbabwe (Private) Limited — — — —
Dangote Mining Zimbabwe (Private) Limited — — — —
Dangote Cement Guinea S.A. — — — —
Cimenterie Obajana Sprl- D.R. Congo — — — —
Itori Cement Plc. — — — —
Okpella Cement Plc. — — — —
Dangote Cement Yaounde — — — —
DCP Cement Limited — — — —
Dangote Cement Limited, Tanzania — — — —
Dangote Contracting Services Limited, Tanzania — — — —
— — 162,071 161,957
During the year, Zambia issued additional shares, all of which were issued to Dangote Cement Plc, resulting in the dilution of
non‑controlling interest to 0.04%. Also, Dangote Cement Tanzania changed its name to Dangote Mines Limited, Tanzania.


continued

17.3 Investment in associate
Group Company
31/12/18 31/12/18 31/12/18 31/12/17
Societe des Ciments d’Onigbolo 3,749 1,582 1,582 1,582

Share of profit from associate 563 2,167 — —
4,312 3,749 1,582 1,582
17.4 Composition of the Group

Information about the composition of the Group at the end of the reporting period is as follows:
Number of wholly owned subsidiaries
Place of incorporation
Principal activity and operation 2018 2017
Cement production Congo 1 1

Bagging and distribution of cement Liberia 1 1
Bagging and distribution of cement Ghana 1 1
Cement production Nepal 1 1
Number of
Place of incorporation non-wholly owned subsidiaries
Principal activity and operation 2018 2017
Cement production South Africa 1 1

Cement production Ethiopia 1 1
Cement production Zambia 1 1
Cement production Senegal 1 1
Cement grinding Cameroon 2 1
Cement production Tanzania 2 1
Contracting services Tanzania 1 —
Bagging and distribution of cement Sierra Leone 1 1
Bagging and distribution of cement Côte d'Ivoire 1 1
Cement grinding Gabon 1 1
Selling and distribution of cement Burkina Faso 1 1
Selling and distribution of cement Chad 1 1
Selling and distribution of cement Mali 1 1
Selling and distribution of cement Niger 1 1
Limestone mining Kenya 1 1
Cement production Kenya 1 1
Cement production Madagascar 1 1
Selling and distribution of cement Benin 1 1
Selling and distribution of cement Togo 1 1
Cement production Mozambique 1 1
Holding company Zimbabwe 1 1
Cement production Zimbabwe 1 1
Power production Zimbabwe 1 1
Coal production Zimbabwe 1 1
Cement production Guinea 1 1
Cement production D.R. Congo 2 2
Cement production Nigeria 3 2
Cement grinding Ghana 1 1

01 02 03 04

17.5 Details of non-wholly owned subsidiaries that have material non-controlling interests
The table below shows details of non-wholly owned subsidiaries of the Group that have material non-controlling interests:
Proportion of
ownership interests
and voting rights held by Profit/(loss) allocated Accumulated
non-controlling interests to non-controlling interests non-controlling interests
Place of incorporation
and principal place 2018 2017 2018 2017 2018 2017
Name of subsidiary of business % % ₦’million ₦’million ₦’million ₦’million
Sephaku Cement (Pty) Limited South Africa 36.00% 36.00% 1,202 604 12,210 14,280
17.6
Summarised below is the financial information in respect of the Group’s subsidiaries that have material non-controlling interests.
Information below represents amounts before intra-group eliminations.
Dangote Cement
South Africa (Pty) Limited
2018 2017
Information in respect of the financial position of the subsidiaries

Current assets 20,067 23,055
Non-current assets 69,594 89,247
Current liabilities 23,882 28,877
Non-current liabilities 29,320 43,758
Equity attributable to owners of the Company 24,249 25,387
Non-controlling interests 12,210 14,280
Information in respect of the profit and loss and other comprehensive income
Revenue 58,993 57,302
Expenses (57,513) (55,117)
Tax credit 1,859 (508)
Profit for the year 3,339 1,677
Profit attributable to owners of the Company 2,137 1,073
Profit attributable to the non-controlling interests 1,202 604
Profit for the year 3,339 1,677
Other comprehensive income — —
Total comprehensive income for the year 3,339 1,677
Total comprehensive income attributable to owners of the Company 2,137 1,073
Total comprehensive income attributable to the non-controlling interests 1,202 604
Total comprehensive income for the year 3,339 1,677
Information in respect of the cash flows of the subsidiary
Dividends paid to non-controlling interests — —
Net cash inflow from operating activities 9,482 12,223
Net cash (outflow)/inflow from investing activities (14) 63
Net cash outflow from financing activities (7,445) (9,261)
Net cash inflow 2,023 3,025
17.7 Change in the Group’s ownership interest in a subsidiary

The Company's shareholding in Dangote Cement Zambia Limited was increased as explained in note 17.2. Also additional
subsidiaries were incorporated in Nigeria and Tanzania during the year.
17.8 Significant restrictions
There are no significant restrictions on the Company’s or its subsidiaries’ ability to access or use its assets to settle the liabilities
of the Group.


continued
18. Prepayments
18.1 Prepayments for property, plant and equipment
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Non-current
Advance to contractors 33,408 16,101 — 1,600
Operating lease 2,975 — — —
Total non-current prepayments 36,383 16,101 — 1,600
18.2 Prepayments and other current assets

Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Advance to contractors 8,563 17,680 5,965 5,791

Deposits for import 14,942 13,839 12,589 9,914
Deposit for supplies 8,519 5,638 1,634 1,083
Rent, rates and insurance 3,846 2,596 2,077 1,303
Other financial assets 8 10 — —
Total current prepayments and other assets 35,878 39,763 22,265 18,091
Related-party transactions
Parent company 524 — 524 —
Entities controlled by the parent company 65,481 75,733 61,627 72,706
Receivables from subsidiaries — — 168,173 157,397
Total related-party transactions 66,005 75,733 230,324 230,103
Prepayments and other current assets 101,883 115,496 252,589 248,194
Non-current advances to contractors represent various advances made to contractors for the construction of plants while
current advances to contractors represent various advances made for the purchase of LPFO, AGO, coal and other materials
which were not received at the year end.
19. Inventories
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Finished product 8,529 6,389 6,358 4,768

Work in progress 16,750 10,096 4,473 4,511
Raw materials 6,281 5,898 2,323 1,993
Packaging materials 4,040 4,180 1,018 1,332
Consumables 10,184 8,287 6,745 6,079
Fuel 11,612 11,621 7,147 9,312
Spare parts 44,452 36,403 29,341 26,275
Goods in transit 5,150 11,720 2,415 7,989
106,998 94,594 59,820 62,259
The cost of inventories recognised as an expense during the year was ₦275.89 billion and ₦120.70 billion (2017: ₦250.50 billion
and ₦104.54 billion) in the consolidated and separate financial statements respectively.
The amount recognised as obsolescence during the year was ₦35.6 million (2017: ₦133.4 million) for Group.

01 02 03 04
20. Trade and other receivables

Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Trade receivables 16,626 16,784 7,036 10,180

Impairment allowance on trade receivables (1,346) (645) (1,272) (616)
15,280 16,139 5,764 9,564
Staff loans and advances 1,514 1,463 1,162 1,209
Other receivables 27,674 12,553 4,120 1,567
Total trade and other receivables 44,468 30,155 11,046 12,340
Trade receivables
The average credit period on sales of goods for both the Group and Company is as shown below.
Of the trade receivables balance at the end of the year in the consolidated and separate financial statements respectively,
₦666.8 million (2017: ₦537 million) and ₦1.13 billion (2017: ₦6.0 billion) are due from the Group’s and Company's largest
trade debtor respectively. There are no other customers which represent more than 10% of the total balance of trade
receivables of the Group after impairment.
The Group always measures the loss allowance for trade receivables at an amount equal to lifetime ECL. The expected credit
losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an
analysis of the debtor’s current financial position, adjusted for factors that are specific to the debtors, general economic conditions
of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at
the reporting date. The Group has recognised a loss allowance of 100% against all receivables over 720 days past due, except
where there is adequate security, because historical experience has indicated that these receivables are generally not recoverable.
There has been no change in the estimation techniques or significant assumptions made during the current reporting year.
The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and
there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy
proceedings, or when the trade receivables are over two years past due, except where there is adequate security. None of the
trade receivables that have been written off are subject to enforcement activities.
Trade receivables are considered to be past due when they exceed the credit period granted.
The following table details the risk profile of trade receivables based on the Group’s provision matrix. As the Group’s historical
credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss
allowance based on past due status is not further distinguished between the Group’s different customer base.
Group
Not past due <30 31–60 61–90 >90 Total
31/12/18 ₦'million ₦'million ₦'million ₦'million ₦'million ₦'million
Expected credit loss rate 1.0% 0.0% 0.3% 2.7% 89.0%

Estimated total gross carrying amount
at default 9,855 4,455 805 111 1,400 16,626
Lifetime ECL 95 — 2 3 1,246 1,346
Company
Expected credit loss rate 0.9% 0.9% 2.1% 6.0% 49.9%

Estimated total gross carrying amount
at default 4,360 49 114 50 2,463 7,036
Lifetime ECL 39 — 2 3 1,228 1,272


continued
21. Financial lease receivables

Group/Company
31/12/18 31/12/17
Current finance lease receivables 2,380 1,608

Non-current finance lease receivables 6,475 6,614
8,855 8,222
Leasing arrangements
The Group entered into finance lease arrangement for some of its trucks. All leases are denominated in Naira. The average term
of finance leases entered into is 4.17 years.
Amounts receivable under finance leases:
Group/Company
Minimum Present value of minimum
lease payments lease payment
31/12/18 31/12/17 31/12/18 31/12/17
Not later than one year 3,349 2,691 2,380 1,608

Later than one year and not later than five years 7,584 8,523 6,475 6,614
Later than five years — — — —
10,933 11,214 8,855 8,222
Less: unearned finance income (2,078) (2,992) — —
Present value of minimum lease payments receivable 8,855 8,222 8,855 8,222
Allowance for uncollectable lease payments — — — —
8,855 8,222 8,855 8,222
Unguaranteed residual values of assets leased under finance leases at the end of the reporting year are estimated at nil.
The average effective interest rate implicit in the contracts is 14% (2017: 14%) per annum.
The Directors of the Company estimate the loss allowance on finance lease receivables at the end of the reporting year at an
amount equal to lifetime ECL. Taking into account the historical default experience and the future prospects of the industries
in which the lessees operate, together with the value of collateral held over these finance lease receivables, the Directors of
the Company consider that no finance lease receivables are impaired.
The table below shows the aged analysis of the finance lease receivables:
Group/Company
Estimated total gross carrying

amount at default 8,721 92 39 3 — 8,855

01 02 03 04
22. Share capital

22.1
Group/Company
31/12/18 31/12/17
Issued and fully paid

Share capital 17,040,507,405 (2017: 17,040,507,405) ordinary shares of ₦0.5 each 8,520 8,520
Share premium 42,430 42,430
22.2
Authorised share capital as at reporting dates represents 20,000,000,000 units of ordinary shares of ₦0.5 each.
Fully paid ordinary shares carry one vote per fully paid up share and a right to dividends when declared and approved.
22.3 Currency translation reserve
Exchange difference relating to the translation of the results and net investments of the Group’s foreign operations from their
functional currencies to the Group’s presentation currency (i.e. currency units) are recognised directly in other comprehensive
income and accumulated in the foreign currency translation reserve. Exchange differences previously accumulated in the foreign
currency translation reserve are reclassified to profit or loss on the disposal of foreign operations.
22.4 Capital contribution
A subordinated loan was obtained by the Company from the immediate parent, Dangote Industries Limited, in 2010. The interest
on the long-term portion was waived for 2011. Given the favourable terms at which the Company secured the loan, an amount of
₦2.8 billion, which is the difference between the fair value of the loan on initial recognition and the amount received, has been
accounted for as a capital contribution.
23. Dividend
On 20th June 2018, a dividend of ₦10.50 per share (total dividend ₦178.9 billion) was approved by shareholders to be paid to
holders of fully paid ordinary shares in relation to 2017 financial year.
In respect of the current year, the Directors proposed a dividend of ₦16.00 per share. This dividend is subject to approval
by shareholders at the Annual General Meeting and has not been included as a liability in these consolidated and separate
24. Trade and other payables

Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Trade payables 86,265 78,561 41,157 50,235

Payable to contractors 22,477 30,933 12,695 21,148
Value added tax 3,050 2,775 1,163 873
Withholding tax payable 6,476 9,485 415 1,118
Staff pension (note 28.1) 461 266 7 8
Advances from customers 26,299 27,163 17,986 16,592
Suppliers’ credit 17,660 41,492 3,523 23,337
Accruals 68,282 80,046 15,933 29,426
Total trade and other payables 230,970 270,721 92,879 142,737
The average credit period on purchases of goods is 82 days (2017: 82 days). Normally, no interest is charged on trade payables.
The Group has financial risk management policies in place to ensure that all payables are paid in line with the pre-agreed credit terms.


continued
25. Financial liabilities

Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Unsecured borrowings at amortised cost

Subordinated loans (note 25(a)) — 29,998 — 29,998
Loans from Dangote Industries Limited 56,956 129,597 56,956 129,597
Bulk Commodities Inc. loans 17,765 16,159 1,184 1,093
Loans from Dangote Oil & Gas 42,776 39,262 42,776 39,262
Commercial papers (note 25(c)) 79,273 — 79,273 —
196,770 215,016 180,189 199,950
Secured borrowings at amortised cost
Power intervention loan (note 25(b)) 7,838 10,225 7,838 10,225
Bank loans 130,693 146,853 10,218 18,015
138,531 157,078 18,056 28,240
Total borrowings at 31st December 335,301 372,094 198,245 228,190
Long-term portion of loans and borrowings 125,725 242,894 62,168 157,195
Current portion repayable in one year and shown
under current liabilities 201,706 122,568 136,077 70,995
Overdraft balances 7,870 6,632 — —
Short-term portion 209,576 129,200 136,077 70,995
Interest payable 10,552 15,583 9,359 15,195
Financial liabilities (short term) 220,128 144,783 145,436 86,190
(a) A subordinated loan of ₦55.4 billion was obtained by the Company from Dangote Industries Limited in 2010. ₦30 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 three years after a moratorium period ending 31st March 2017. The interest on the
long term portion was waived for 2011. Given the favourable terms at which the Company secured the loan, an amount of
₦2.8 billion which is the difference between the fair value of the loan on initial recognition and the amount received, has been
accounted for as a capital contribution. This loan was repaid during the year.
(b) In 2011 and 2012, the Bank of Industry through Guaranty Trust Bank Plc and Access Bank Plc granted the Company the
sum of ₦24.5 billion long-term loan repayable over ten 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 twelve 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 ₦20.7 billion. The difference of ₦3.8 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.
(c) Commercial paper with a face value of ₦50 billion and nominal discount rate of 12.40% – 12.65% was issued in June 2018.
Another tranche of ₦50 billion with similar nominal discount was issued in August 2018.

01 02 03 04
25. Financial liabilities continued

Group
Nominal Maturity 31/12/18 31/12/17
Currency interest rate on demand ₦’million ₦’million
Bank overdrafts On demand 7,870 6,632

Other borrowings
Subordinated loans from parent company Naira MPR + 1% 12/2018 — 29,998
Other loans from parent company Naira 13% 2020 56,956 129,597
On demand
Loan from Bulk Commodities Inc. USD 6%-8% and 2021 17,765 16,159
Commercial paper Naira 12.40%–12.65% 2019 79,273 —
Loans from Dangote Oil & Gas Naira 6.5% 2019 42,776 39,262
Power intervention loan Naira 7% 07 and 12/2021 7,838 10,225
Short-term bank loans USD 6.5% 2019 62,593 37,125
Long-term bank loans CFA 8.50% 07/2021 24,974 54,002
Nedbank/Standard Bank Loan Rands JIBAR + 4% 11/2022 35,256 49,094
327,431 365,462
Total borrowings at 31st December 335,301 372,094
Company
Nominal Maturity 31/12/18 31/12/17
Currency interest rate on demand ₦’million ₦’million
Subordinated loans Naira MPR + 1% 12/2018 — 29,998

Loans from parent company Naira 13% 2020 56,956 129,597
Loan from Bulk Commodities Inc. USD 6% On demand 1,184 1,093
Loans from Dangote Oil & Gas Naira 6.5% 2019 42,776 39,262
Power intervention loan Naira 7% 07 and 12/2021 7,838 10,225
Commercial paper Naira 12.40%–12.65% 2019 79,273 —
Short-term loans from banks USD 6.5% 2019 10,218 18,015
Total borrowings at 31st December 198,245 228,190
The maturity profiles of borrowings are as follows:

Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Due within one month 8,446 11,199 406 406

Due from one to three months 5,044 4,886 250 2,750
Due from three to twelve months 196,086 113,115 135,421 67,839
Total current portion repayable in one year 209,576 129,200 136,077 70,995
Due in the second year 83,993 163,518 59,581 142,223
Due in the third year 25,114 37,484 2,311 12,623
Due in the fourth year 12,274 25,395 276 2,186
Due in the fifth year and further 4,344 16,497 — 163
Total long-term portion of loans and borrowings 125,725 242,894 62,168 157,195
Total 335,301 372,094 198,245 228,190


continued

The table below details changes in the liabilities arising from financing activities, including both cash and non-cash changes.
Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the
Group’s consolidated statement of cash flows as cash flows from financing activities.
Group
Financing Exchange
01/01/18 cash flows gains/(losses) Others 31/12/18
₦’million ₦’million ₦’million ₦’million ₦’million
Subordinated loans 29,998 (29,998) — — —

Loans from Dangote Industries Limited 129,597 (72,496) (145) — 56,956
Bulk Commodities loans 16,159 1,098 508 — 17,765
Loans from Dangote Oil & Gas 39,262 3,338 176 — 42,776
Power intervention loan 10,225 (2,377) — (10) 7,838
Commercial papers — 79,273 — — 79,273
Bank loans 140,221 (11,185) (6,213) — 122,823
365,462 (32,347) (5,674) (10) 327,431
Company
Financing Exchange
Subordinated loans 29,998 (29,998) — — —

Loans from Dangote Industries Limited 129,597 (72,496) (145) — 56,956
Bulk Commodities loans 1,093 — 91 — 1,184
Loans from Dangote Oil & Gas 39,262 3,338 176 — 42,776
Power intervention loan 10,225 (2,377) — (10) 7,838
Commercial papers — 79,273 — — 79,273
Bank loans 18,015 (7,857) 60 — 10,218
228,190 (30,117) 182 (10) 198,245
Group
Financing Exchange
Subordinated loans 29,998 — — — 29,998

Loans from Dangote Industries Limited 46,097 83,500 — — 129,597
Bulk Commodities loans 9,794 5,841 524 — 16,159
Loans from Dangote Petroleum Refinery
and Petrochemicals FZE 130,000 (130,000) — — —
Power intervention loan 12,496 (2,625) — 354 10,225
Bank loans 121,788 5,961 12,472 — 140,221
Loans from Dangote Oil & Gas — 39,914 (652) — 39,262
350,173 2,591 12,344 354 365,462

01 02 03 04

Company
Financing Exchange
Subordinated loans 29,998 — — — 29,998

Loans from Dangote Industries Limited 46,097 83,500 — — 129,597
Bulk Commodities loans 1,004 — 89 — 1,093
Loans from Dangote Petroleum Refinery
and Petrochemicals FZE 130,000 (130,000) — — —
Power intervention loan 12,496 (2,625) — 354 10,225
Bank loans 42,683 (24,743) 75 — 18,015
Loans from Dangote Oil & Gas — 39,914 (652) — 39,262
262,278 (33,954) (488) 354 228,190
26. Deferred revenue and other liabilities

26.1. Deferred revenue
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Deferred revenue arising from government grant (refer to (a) below) 741 1,147 355 629
741 1,147 355 629
Current (note 26.2) 225 308 199 274

Non-current 516 839 156 355
741 1,147 355 629
a) The deferred revenue mainly arises as a result of the benefit received from government loans received in 2011 and 2012
(see note 25 (b)). The revenue was recorded in other income line.
Movement in deferred revenue
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Balance at 1st January 1,147 1,446 629 975

Additions during the year — 77 — —
1,147 1,523 629 975
Released to profit and loss account (other income) (306) (376) (274) (346)
Effect of foreign exchange differences (100) — — —
Closing balance 741 1,147 355 629


continued
26.2 Other current liabilities
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Current portion of deferred revenue (note 26.1) 225 308 199 274
Parent company — 8,133 — 8,133
Affiliates and associates of parent company 17,316 19,889 14,219 15,083
Payables to subsidiaries — — 12,889 18,406
Total of related-party transactions 34,960 40,763 37,637 50,968
Other current liabilities 35,185 41,071 37,836 51,242
27. Provisions for liabilities and other charges

Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Restoration cost 2,753 3,416 1,310 2,073

2,753 3,416 1,310 2,073
Group
2018 2017
Restoration Others Total Restoration Others Total
₦’million ₦’million ₦’million ₦’million ₦’million ₦’million
Balance at the beginning of the year 3,416 — 3,416 3,344 — 3,344

Effect of foreign exchange differences (168) — (168) 153 — 153
Provisions made during the year (313) — (313) (691) — (691)
Transfer to short term (442) — (442) — — —
Unwinding of discount 260 — 260 610 — 610
Balance at the end of the year 2,753 — 2,753 3,416 — 3,416
Company
2018 2017
Restoration Others Total Restoration Others Total
₦’million ₦’million ₦’million ₦’million ₦’million ₦’million
Balance at the beginning of the year 2,073 — 2,073 2,302 — 2,302

Provisions made during the year (1,016) — (1,016) (839) — (839)
Unwinding of discount 253 — 253 610 — 610
Balance at the end of the year 1,310 — 1,310 2,073 — 2,073
The Group’s obligations are to settle environmental restoration and dismantling/decommissioning cost of property, plant and
equipment when the Group has a legal or constructive obligation to do so. The expenditure is expected to be utilised at the end
of the useful lives for the mines which is currently estimated to be between the years 2025 and 2035.

01 02 03 04
28. Employee benefits

28.1 Defined contribution plans
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Balance at beginning of the year 266 211 8 41

Provision for the year 2,117 2,707 1,075 1,826
Payments during the year (1,922) (2,652) (1,076) (1,859)
Balance at the end of the year 461 266 7 8
Provisions for staff pensions have been made in the financial statements in accordance with the relevant pension rules applicable
in the country. The accrual at 31st December 2018 amounted to ₦461 million (2017: ₦266 million) for the Group.
Outstanding staff pension deductions that have not been remitted as at year end have been accrued accordingly. The employees
of the Group are members of a state-arranged pension scheme which is managed by several private sector service providers. The
Group is required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The
only obligation of the Group with respect to the defined contribution plan is to make the specified contributions.
The total expense recognised in profit or loss of ₦2.12 billion (2017: ₦2.71 billion) represents contributions payable to these plans
by the Group at rates specified in the rules of the plans.
29. Financial instruments

29.1 Capital management
The Group manages its capital to ensure that the Group will be able to continue as a going concern while maximising the return
to stakeholders through the optimisation of the debt and equity balance.
The capital structure of the Group consists of net debt (borrowings as detailed in note 25 offset by cash and bank balances) and
equity of the Group (comprising issued capital, reserves, retained earnings and non-controlling interests as detailed below.
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Net debt 168,405 203,707 89,265 125,722

Equity 986,613 781,360 1,293,548 991,017
The Finance committee reviews the capital structure of the Group on a quarterly basis. As part of this review, the Committee
considers the cost of capital and the risks associated with each class of capital. The Group endeavours to maintain an optimum
mix of net debt to equity ratio which provides benefits of trading on equity without exposing the Group to any undue long-term
liquidity risk. The Group manages its capital structure and makes adjustments to it in light of changes in economic conditions.
To maintain the capital or adjust the capital structure, the Group may adjust the dividend payment to shareholders, issue new
and/or bonus shares, or raise debts in favourable market conditions.
The net debt to equity ratio as at 31st December 2018 is 17% (2017: 26%).
29.1.1 Debt to equity ratio
The debt to equity ratio at the end of the reporting period was as follows:
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Financial debt (note 25) 335,301 372,094 198,245 228,190

Cash and bank balances (note 31.1) 166,896 168,387 108,980 102,468
Net debt 168,405 203,707 89,265 125,722
Equity 986,613 781,360 1,293,548 991,017
Net debt/equity ratio 0.17 0.26 0.07 0.13


continued
29. Financial instruments continued

29.2 Categories of financial instruments
Group
Amortised Total
cost FVTOCI financial Non-financial Total
31/12/18 ₦’million ₦’million ₦’million ₦’million ₦’million
Assets
Property, plant and equipment — — — 1,171,864 1,171,864
Intangible assets — — — 5,969 5,969
Investment in associate — — — 4,312 4,312
Finance lease receivables 8,855 — 8,855 — 8,855
Deferred tax asset — — — 40,622 40,622
Prepayments for property, plant and equipment — — — 36,383 36,383
Inventories — — — 106,998 106,998
Trade and other receivables 44,468 — 44,468 — 44,468
Prepayments and other current assets 66,013 — 66,013 35,870 101,883
Current income tax receivables — — — 6,213 6,213
Cash and bank balances 166,896 — 166,896 — 166,896
Total financial assets 286,232 — 286,232 1,408,231 1,694,463
Liabilities
Trade and other payables 195,145 — 195,145 35,825 230,970
Current income tax payable — — — 9,223 9,223
Financial liabilities 345,853 — 345,853 — 345,853
Other current liabilities 34,960 — 34,960 225 35,185
Deferred tax liabilities — — — 83,350 83,350
Long-term provisions and other charges — — — 2,753 2,753
Deferred revenue — — — 516 516
Total financial liabilities 575,958 — 575,958 131,892 707,850

01 02 03 04

29.2 Categories of financial instruments continued
Group
Amortised Total
Assets
Property, plant and equipment — — — 1,192,140 1,192,140
Intangible assets — — — 6,355 6,355
Inventories — — — 94,594 94,594
Current income tax receivables — — — 59 59
Total financial assets 282,507 — 282,507 1,383,376 1,665,883
Liabilities


continued

Company
Amortised Total
Assets
Property, plant and equipment — — — 535,934 535,934
Intangible assets — — — 48 48
Investments in subsidiaries — — — 162,071 162,071
Other receivables 560,277 — 560,277 — 560,277
Inventories — — — 59,820 59,820
Current income tax receivables — — — 6,211 6,211
Total financial assets 919,482 — 919,482 802,492 1,721,974
Liabilities

01 02 03 04
29. Financial Instruments continued

Company
Amortised Total
Assets
Property, plant and equipment — — — 549,962 549,962
Intangible assets — — — 37 37
Investments in subsidiaries — — — 161,957 161,957
Other receivables 455,792 — 455,792 — 455,792
Inventories — — — 62,259 62,259
Total financial assets 808,925 — 808,925 802,162 1,611,087
Liabilities
29.3 Financial risk management objectives

The Group's Corporate Treasury function provides services to the business, co-ordinates access to domestic and international
financial markets, monitors and manages the financial risks relating to the operations of the Group and analyses exposures by
degree and magnitude of risks. These risks include market risk, credit risk and liquidity risk.
29.4 Market risk
The Group's activities expose it primarily to the financial risks of changes in foreign currency exchange rates (note 29.5.1) and
interest rates (note 29.7.2).


continued

29.5 Foreign currency risk management
The Group undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise.
Income is primarily earned in local currency for most of the locations with a significant portion of capital expenditure being in foreign
currency. The Group manages foreign currency by monitoring our financial position in each country where we operate with the aim
of having assets and liabilities denominated in the functional currency as much as possible. The carrying amounts of the Group and
Company’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting year are as follows:
Group
Liabilities Assets
31/12/18 31/12/17 31/12/18 31/12/17
US Dollars 269,921 197,867 35,580 20,753

Company
Liabilities Assets
31/12/18 31/12/17 31/12/18 31/12/17
US Dollars 214,311 163,725 740,079 575,654
29.5.1 Foreign currency sensitivity analysis

The Group is mainly exposed to US Dollars.
The following table details the Group and Company’s sensitivity to a 15% (2017: 15%) increase and decrease in the Naira against
the US Dollar. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their
translation at the period end for a 15% change in foreign currency rates. The sensitivity analysis includes external loans as well as
loans to foreign operations within the Group where the denomination of the loan is in a currency other than the functional currency
of the lender or the borrower. A positive number below indicates an increase in profit or equity for a 15% change in the exchange
rates. A negative number below indicates a decrease in profit or equity for a 15% change in the exchange rates.
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Effect on profit or loss/equity for a 15% (2017: 15%) appreciation 24,606 18,597 (55,206) (43,253)
Effect on profit or loss/equity for a 15% (2017: 15%) depreciation (24,606) (18,597) 55,206 43,253
This is mainly attributable to the exposure outstanding on US Dollar receivables and payables at the end of the reporting period.
29.6 Credit risk management
Credit risk refers to the risk that counterparties will default on their contractual obligations resulting in financial loss to the Group.
The Group has adopted a policy of only dealing with creditworthy counterparties.
The Group's and Company’s business is predominantly on a cash basis. Revolving credits granted to major distributors and very
large corporate customers approximate about ₦5 billion and these are payable within 30 days. Stringent credit control is
exercised over the granting of credit; this is done through the review and approval by executive management based on the
recommendation of the independent credit control group.
Credits to major distributors are covered by bank guarantee with an average credit period of no more than 15 days.
For very large corporate customers, clean credits are granted based on previous business relationships and positive
creditworthiness which is performed on an ongoing basis. These credits are usually payable at no more than 30 days.
The Group and the Company do not have significant credit risk exposure to any single counterparty or any group of counterparties
having similar characteristics. The Group defines counterparties as related entities with similar characteristics. There is no material
single obligor exposure to report.
Trade receivables consist of a large number of customers, spread across diverse geographical areas. Ongoing credit evaluation
is performed on the financial condition of accounts receivable.
The credit risk on liquid funds’ financial instruments is limited because the counterparties are banks with high credit ratings
assigned by credit-rating agencies.

01 02 03 04

29.6 Credit risk management continued
29.6.1 Exposure to credit risk
The tables below detail the credit quality of the Group’s financial assets as well as the Group’s maximum exposure to credit risk
by credit risk rating grades.
Group
Gross Net
External Internal 12 months or carrying amount Allowance carrying amount
31/12/18 Notes credit rating rating lifetime ECL ₦’million ₦’million ₦’million
Finance lease receivables 21 N/A ii Lifetime ECL 8,855 — 8,855

Trade and other receivables 20 N/A ii Lifetime ECL 45,814 (1,346) 44,468
Prepayments and other
current assets 18.2 N/A Performing Lifetime ECL 66,013 — 66,013
Cash and bank balances 31.1 i i i 166,896 — 166,896
Total 287,578 (1,346) 286,232
Group
Gross Net

Trade and other receivables 20 N/A ii Lifetime ECL 30,800 (645) 30,155
Total 283,152 (645) 282,507
Company
Gross Net

Other receivables 30 N/A ii Lifetime ECL 560,277 — 560,277
Trade and other receivables 20 N/A ii Lifetime ECL 12,318 (1,272) 11,046
Total 920,754 (1,272) 919,482
Company
Gross Net

Other receivables 30 N/A ii Lifetime ECL 455,792 — 455,792
Trade and other receivables 20 N/A ii Lifetime ECL 12,956 (616) 12,340
Total 809,541 (616) 808,925
(i) All bank balances are assessed to have low credit risk at each reporting date as they are held with reputable banking institutions
with good credit ratings by rating agencies.
(ii) For finance leases and trade receivables, the simplified approach to measure the loss allowance at lifetime ECL has been applied.

continued

29.7 Liquidity risk management
The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts,
bank loans, debentures and preference shares. The Group has access to sufficient sources of funds directly from external
sources as well as from the Group's parent.
29.7.1 Liquidity maturity table
The following tables detail the Group and Company’s remaining contractual maturity for its financial liabilities with agreed
repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the
earliest date on which the Group and the Company can be required to pay. The tables below include both interest and principal
cash flows for the Group.
Group
<1 month 1– 3 months 3 months–1 year >1 year

Trade payables and other payables 177,485 — 17,660 —
Financial liabilities 19,839 7,006 213,634 138,501
Other current liabilities 34,960 — — —
Total 232,284 7,006 231,294 138,501
Group

Total 257,909 6,576 160,719 251,915
Company

Financial debts 9,810 288 145,536 62,400
Total 117,239 288 149,059 62,400
Company

Total 167,447 3,540 93,728 159,583

01 02 03 04

29.7 Liquidity risk management continued
29.7.2 Interest Risk
The following table details the sensitivity to a 1% (2017: 1%) increase or decrease in interest rates.
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Effect on profit or loss/equity for a 1% (2017: 1%) increase in rate (978) (349) 2,224 1,902
Effect on profit or loss/equity for a 1% (2017: 1%) decrease in rate 978 349 (2,224) (1,902)
29.7.3 Fair valuation of financial assets and liabilities

The carrying amount of trade and other receivables, cash and bank balances and amounts due from and to related parties as
well as trade payables and other payables approximate their fair values because of the short-term nature of these instruments
and, for trade and other receivables, because of the fact that any loss from recoverability is reflected in an impairment loss.
The fair values of financial debt approximate the carrying amount as the loans are pegged to market rates and reset when
rates change.
30. Related-party transactions

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated
on consolidation. Details of transactions between the Group and Company, and other related parties, are disclosed below.
The Group and the Company, in the normal course of business, sell to and buy from other business enterprises that fall within
the definition of a “related party” contained in International Accounting Standard 24. These transactions mainly comprise
purchases, sales, finance costs, finance income and management fees paid to shareholders. The companies in the Group also
provide funds to and receive funds from each other as and when required for working capital financing and capital projects.
30.1 Trading transactions
During the year, Group entities entered into the following trading transactions with related parties that are not members of the Group:
Sale of goods Purchases of goods
31/12/18 31/12/17 31/12/18 31/12/17
Parent company — — — —
Affiliates and associates of the parent company 462 — 58,599 61,438
During the year, the Company entered into the following trading transactions with related parties:
Sale of goods Purchases of goods
31/12/18 31/12/17 31/12/18 31/12/17
Parent company — — — —
Affiliates and associates of the parent company — — 4,242 11,528
In addition to sales and purchases of goods, the Company charged interest amounting to ₦29.9 billion (2017: ₦29.4 billion) on
loans granted to subsidiaries. This interest is eliminated on consolidation.
Also during the year, the parent company charged the Group a total interest of ₦12.5 billion (2017: ₦22.3 billion), being the cost
of borrowing to finance capital projects and other operational expenses.
Balances at year end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any
related-party receivables.


continued
30. Related-party transactions continued

30.1 Trading transactions continued
The following balances were outstanding at the end of the reporting year:
Group
Amounts owed by Amounts owed to
related parties related parties
31/12/18 31/12/17 31/12/18 31/12/17
Current
Parent company 524 — — 8,133
66,005 75,733 34,960 40,763
Company
31/12/18 31/12/17 31/12/18 31/12/17
Non-current
Entities controlled by the Company 560,277 455,792 — —
The above balances represent expenditures on projects in African countries. These are not likely to be repaid within the next
twelve months and have been classified under non-current assets.
Company
31/12/18 31/12/17 31/12/18 31/12/17
Current
Parent company 524 — — 8,133
Subsidiaries of the Company 168,173 157,397 12,889 18,406
230,324 230,103 37,637 50,968
30.2 Loans from related parties

Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Affiliates and associates of the parent company 17,765 16,159 1,184 1,093
Loans from the parent company 56,956 159,595 56,956 159,595

01 02 03 04
30. Related-party transactions continued

30.3 Compensation of key management personnel
The remuneration of Directors and other members of key management personnel during the year was as follows :
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Short-term benefits 1,116 1,071 1,116 1,062

Provision for staff pension benefits — — — —
1,116 1,071 1,116 1,062
Other related-party transactions

In addition to the above, Dangote Industries Limited performed certain administrative services for the Company, for which a
management fee of ₦3.63 billion (2017: ₦3.85 billion) was charged and paid, being an allocation of costs incurred by relevant
administrative departments.
31. Supplemental cash flow disclosures

31.1 Cash and cash equivalents
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Cash and bank balances 94,704 82,297 46,810 30,141

Short-term deposits 72,19 2 86,090 62,170 72,327
Total cash and bank balances 166,896 168,387 108,980 102,468
Bank overdrafts used for cash management purposes (7,870) (6,632) — —
Cash and cash equivalents 159,026 161,755 108,980 102,468
Cash and cash equivalents includes restricted cash of ₦22.03billion (2017: ₦46.6 billion ) on letters of credit for the acquisition
of inventories and property, plant and equipment.
32. Operating lease arrangements

Operating leases relate to leases of depots, offices and land. The Group does not have an option to purchase the leased land at
the expiry of the lease periods.
Payments recognised as an expense
Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Minimum lease payments 1,622 1,752 603 634
Non-cancellable operating lease commitments

Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Not later than one year 1,777 1,539 562 432

Later than one year and not later than five years 4,191 3,943 336 113
Later than five years 16,307 15,910 — —
22,275 21,392 898 545


continued
33. Commitments for expenditure

Group Company
31/12/18 31/12/17 31/12/18 31/12/17
Commitments for the acquisition of property, plant and equipment 96,156 105,599 47,001 12,248
34. Contingent liabilities and contingent assets

No provision has been made in these consolidated and separate financial statements for contingent liabilities in respect of
litigations against the Company and its subsidiaries to ₦67.2 billion (2017: ₦16.3 billion). According to the solicitors acting on
behalf of the Company and its subsidiaries, the liabilities arising, if any, are not likely to be significant.
35. Subsequent events

On 25th February 2019 a dividend of ₦16.00 per share was proposed by the Directors for approval at the Annual General
Meeting. This will result in a dividend payment of ₦272.6 billion.

01 02 03 04
Five-year financial summary – other national disclosure

Group balance sheet
2018 2017 2016 2015 2014

Assets/liabilities
Property, plant and equipment 1,171,864 1,192,140 1,155,711 917,212 747,794
Intangible assets 5,969 6,355 4,145 2,610 3,699
Investments 4,312 3,749 1,582 1,582 —
Prepayments for property, plant and equipment 36,383 16,101 13,196 9,094 79,491
Finance lease receivables 6,475 6,614 — — —
Net current liabilities (66,668) (110,177) (222,629) (36,932) (95,846)
Deferred taxation assets/(liabilities) (42,728) (86,273) (51,856) (35,876) (3,840)
Long-term debts (125,725) (242,894) (152,475) (208,329) (131,942)
Long-term payables — — (17,730) (24,442) —
Staff gratuity — — — (3,992) (2,070)
Other non-current liabilities (3,269) (4,255) (4,416) (4,258) (5,401)
Net assets 986,613 781,360 725,528 616,669 591,885
Capital and reserves
Share capital 8,520 8,520 8,520 8,520 8,520
Share premium 42,430 42,430 42,430 42,430 42,430
Capital contribution 2,877 2,877 2,877 2,877 2,877
Employee benefit reserve — — — (1,007) (16)
Currency translation reserve 72,605 75,441 78,964 (22,366) (3,837)
Revenue reserve 848,695 639,462 605,662 592,450 537,750
Non-controlling interest 11,486 12,630 (12,925) (6,235) 4,161
986,613 781,360 725,528 616,669 591,885
Turnover, profit or loss account
Turnover 901,213 805,582 615,103 491,725 391,639
Profit before taxation 300,806 289,590 180,929 188,294 184,689
Taxation 89,519 (85,342) (38,071) (35,022) (25,188)
Profit after taxation 390,325 204,248 142,858 153,272 159,501
Per share data (Naira):
Earnings (basic and diluted) 22.83 11.65 8.78 9.21 9.42
Net assets 57.90 45.85 42.58 36.19 34.73
Earnings per share are based on profit after taxation and the weighted average number of issued and fully paid ordinary shares
at the end of each financial year.
Net assets per share are based on net assets and the weighted average number of issued and fully paid ordinary shares at the
end of each financial year.

Five-year financial summary – other national disclosure

Company balance sheet
31/12/18 31/12/17 31/12/16 31/12/15 31/12/14

Assets/(liabilities)
Property, plant and equipment 535,934 549,962 569,017 577,017 526,722
Intangible assets 48 37 113 385 682
Investments 163,653 163,539 80,255 27,657 26,075
Receivables from subsidiaries 715,561 594,783 601,871 383,845 273,229
Prepayments for property, plant and equipment — 1,600 — — 1,773
Finance lease receivables 6,475 6,614 — — —
Net current liabilities 983 (56,078) (210,171) (30,214) (87,944)
Deferred taxation liabilities (65,472) (109,817) (70,741) (36,981) (6,096)
Long-term debts (62,168) (157,195) (86,182) (181,384) (95,435)
Long-term payables — — — (24,442) —
Staff gratuity — — — (3,992) (2,070)
Other non-current liabilities (1,466) (2,428) (2,931) (1,594) (1,685)
Net assets 1,293,548 991,017 881,231 710,297 635,251
Capital and reserves
Share capital 8,520 8,520 8,520 8,520 8,520
Share premium 42,430 42,430 42,430 42,430 42,430
Capital contribution 2,828 2,828 2,828 2,828 2,828
Employee benefit reserve — — — (1,007) (16)
Revenue reserve 1,239,770 937,239 827,453 657,526 581,489
1,293,548 991,017 881,231 710,297 635,251
Turnover, profit or loss account
Turnover 618,301 552,364 426,129 389,215 371,534
Profit before taxation 392,223 342,153 355,016 212,416 209,119
Taxation 89,233 (87,523) (48,765) (34,136) (26,596)
Profit after taxation 481,456 254,630 306,251 178,280 182,523
Per share data (Naira):
Earnings (basic and diluted) 28.25 14.94 17.97 10.46 10.71
Net assets 75.91 58.16 51.71 41.68 37.28
Earnings per share are based on profit after taxation and the weighted average number of issued and fully paid ordinary shares
at the end of each financial year.
Net assets per share are based on net assets and the weighted average number of issued and fully paid ordinary shares at the
end of each financial year.

01 02 03 04
Statement of value added – other national disclosure
Group Company
2018 2017 2018 2017
₦’million % ₦’million % ₦’million % ₦’million %
Sales 901,213 805,582 618,301 552,364

Finance income 11,323 35,926 79,378 71,286
Other income 10,222 5,213 3,783 3,386
922,758 846,721 701,462 627,036
Bought-in materials and services:
– Imported (178,831) (89,060) (78,566) (59,699)
– Local (239,859) (281,461) (123,686) (117,428)
Value added 504,068 100 476,200 100 499,210 100 449,909 100
Applied as follows:
To pay employees:
Salaries, wages and other benefits 57,281 12 49,960 10 32,613 7 28,762 6
To pay government:
Current taxation (43,401) (9) 49,061 10 (44,888) (9) 48,447 11
Deferred taxation (46,118) (9) 36,281 8 (44,345) (9) 39,076 9
To pay providers of capital:
Finance charges 49,778 10 52,711 11 22,565 5 35,035 8
To provide for maintenance
of fixed assets:
– Depreciation 95,578 19 83,377 18 51,793 10 43,862 10
– Amortisation 625 — 562 — 16 — 97 —
Retained in the Group:
– Non-controlling interest 1,342 — 5,663 1 — — — —
– Profit and loss account 388,983 77 198,585 42 481,456 96 254,630 56
504,068 100 476,200 100 499,210 100 449,909 100
Value added represents the additional wealth which the Group and Company have been able to create by their own and their
employees' efforts. The statement shows the allocation of that wealth to employees, government and providers of finance, and that
retained for future creation of more wealth.

Share capital history
Authorised Issued and Fully Paid Consideration/Remarks
Date Increase Cumulative Increase Cumulative Cash/Bonus/Others
1992 500,000,000 210,000,000 210,000,000 210,000,000 Cash

2001 0 500,000,000 290,000,000 500,000,000 Cash
2010 9,500,000,000 10,000,000,000 7,000,000,000 7,500,000,000 Bonus
2010 0 0 245,685,184 7,745,685,184 Share Exchange (Merger)
2011 0 10,000,000,000 0 7,745,685,184 No Change
2012 0 10,000,000,000 774,568,578 8,520,253,762 Bonus
2013 0 10,000,000,000 0 8,520,253,762 No Change
2014 0 10,000,000,000 0 8,520,253,762 No Change
2015 0 10,000,000,000 0 8,520,253,762 No Change
2016 0 10,000,000,000 0 8,520,253,762 No Change
2017 0 10,000,000,000 0 8,520,253,762 No Change
2018 0 10,000,000,000 0 8,520,253,762 No Change
AG Dangote Construction Limited The entity buys cement from Dangote Cement and is controlled by Dangote
Industries Limited (DIL).
Amaras Nigeria Limited The entity buys cement from Dangote Cement and is guaranteed by Sani Dangote,
Director of Dangote Cement.
Bulk Commodities International Inc. The entity, controlled by DIL, procures gypsum, coal, clinker, bulk cement
/Bulk Commodities International and spare parts for Dangote Cement.
Dubai
DANCOM Technologies Limited The entity, which is controlled by DIL, provides internet services, and IT support to
Dangote Cement.
Dangote AD Star Limited Dangote Cement purchases LPFO in bulk and on behalf of some subsidiaries/
affiliates of DIL, including this entity. Dangote Cement is reimbursed for expenses
incurred on behalf of this entity.
Dangote Agro Sacks Limited Dangote Agro Sacks produces bags for Dangote Cement and also purchased
cement from the Company during the year. Dangote Cement also shares one of its
power plants with this entity.
Dangote Coal Limited Dangote Cement buys coal from this entity, which is controlled by Dangote
Industries Limited.
Dangote Fertilizer Limited Dangote Cement purchases LPFO and AGO in bulk and on behalf of some
subsidiaries/affiliates of DIL, including DFL. Dangote Cement is reimbursed
for expenses incurred on its behalf.
Dangote Flour Mills Plc Dangote Cement purchases AGO in bulk and on behalf of this entity. Dangote Cement
also purchases trucks on behalf of this entity for which it is reimbursed.

01 02 03 04
Dangote Global Services This entity, controlled by DIL, assists Dangote Cement in importing parts.
Dangote Industries Limited Dangote Industries Limited is the major shareholder of Dangote Cement.
It provides short-term financing and manages Dangote Cement expatriates’
salaries and receives management fees for its services.
Dangote Noodles Limited Dangote Cement purchases AGO in bulk and on behalf of some subsidiaries and
Dangote Oil & Gas This entity, which is controlled by DIL, imports AGO and LPFO on behalf
of Dangote Cement.
Dangote Oil Refinery Dangote Cement is reimbursed for expenses incurred on behalf of this entity,
which is an affiliate of Dangote Industries Limited.
Dangote Pasta Limited Dangote Cement purchases LPFO in bulk and on behalf of some subsidiaries/
Dangote Sugar Refinery Plc. Dangote Cement purchases LPFO in bulk and on behalf of some subsidiaries/
affiliates of DIL, including DSR Plc. Dangote Cement is reimbursed for expenses
incurred on behalf of DSR.
DANSA Foods Limited Dangote Cement purchased products from this entity for sales promotion.
The entity is related to Sani Dangote, a Director of Dangote Cement.
Ecobank The bank provides loans and other banking services to Dangote Cement.
Emmanuel Ikazoboh, a Non-Executive Director of Dangote Cement, is the
Chairman of Ecobank.
Fidelity Bank The bank provides loans and other banking services to Dangote Cement. Ernest Ebi, a
Non-Executive Director of Dangote Cement, is also the Chairman of Fidelity Bank.
Greenview Development This entity, which is controlled by DIL, assists Dangote Cement with procurement,
Nigeria Limited clearing of bulk materials, imported goods and spares.
Greenview International Corporation This entity manages the Dangote. It is controlled by Dangote Industries Limited.
Integrated Steel Limited Dangote Cement purchases AGO in bulk and on behalf of some subsidiaries/
affiliates of DIL, including this entity. Dangote Cement is repaid for expenses
incurred on its behalf.
Kura Holdings This company, which is an affiliate of Dangote Industries Limited, provides travel
agency services to Dangote Cement.
MHF Properties This company, which is an affiliate of Dangote Industries, provides accommodation
and property services to Dangote Cement.
NASCON Allied Industries Dangote Cement purchases AGO in bulk and on behalf of some subsidiaries/affiliates
of DIL, including this entity. In addition, Dangote Cement purchases trucks and
earthen salt on behalf of this entity for which it is reimbursed.
Savannah Sugar Dangote Cement is reimbursed for payments for duties on equipment and terminal
charges on behalf of this entity. The entity is controlled by Dangote Sugar.
SIAO The entity provides accounting and professional services to Dangote Cement. The entity
is related to Robert Odiachi, who is the Chairman of the Statutory Audit Committee.

Board policies
Board policy Description

Anti-Bribery and This sets out the Group’s anti-corruption policy and is part of the overall Anti-Fraud Compliance Programme. It
Corruption Policy aims to align with all relevant acts, codes, laws, guidelines, policies, etc. designed to prevent, detect and
respond to issues of corruption and bribery.
The policy demonstrates the Company’s zero tolerance for all forms of fraud including but not limited to bribery,
corruption, asset misappropriation and financial statement fraud.
The Company has established a robust Anti-Fraud Programme that sets out the following:
• anti-fraud awareness and communication strategies;
• fraud and corruption prevention mechanisms;
• fraud and corruption detection mechanisms;
• fraud response mechanisms; and
• enforcement initiatives and sanction grid.
In addition, we established an Anti-Fraud Management Committee to implement the Anti-Corruption Programme
and to report fraud and misconduct-related issues to the Group CEO and the Board Audit, Compliance and Risk
Management Committee.
Board Appointment This policy sets out the standards for the appointment of the Directors and aims to achieve a balance of
Policy experience, knowledge and skills amongst its Directors.
Board Development This policy seeks to institutionalise training and continuous development of the Directors of Dangote Cement.
Policy
Board Evaluation This policy provides a systematic and ongoing method of assisting Board members in the assessment of the
Policy Board’s scope of operation, responsibilities and effectiveness.
Board Remuneration This policy reflects the Group’s desire to sustain long-term value creation for shareholders and aims to attract
Policy and retain people with integrity, ability, skill and experience to deliver the Group’s strategy.
Communication This establishes guidelines for communication of general and price-sensitive information about the Company to
Governance Policy the investors, the media, the public and other stakeholders in line with any regulatory requirements that may
apply to such communication.
Conflict of Interest/ This provides a framework to identify, disclose and manage actual and perceived conflicts of interest.
Related Party
Transaction Policy
Directors’ Code of The Board has adopted a Code of Conduct Policy for Directors.
Conduct Policy This sets out the standards that each Director is expected to adhere to while conducting his/her fiduciary duties.
This Code is intended to focus the Board and each Director on areas of ethical risk, provide guidance to
Directors to help them recognise and deal with ethical issues, provide mechanisms to report unethical conduct
and help foster a culture of honesty and accountability on the Board.
Directors are expected to adhere to this Code while conducting their fiduciary duties. During the year, all
Directors attested to their compliance with the provisions of this Code.
Insider Trading Policy Dangote Cement is guided by a strong commitment to maintain the integrity of its business dealings. The Board
has established an Insider Trading Policy designed to prohibit the purchase and sale of Dangote Cement shares or
securities on the basis of potentially price-sensitive information that is not yet in the public domain. This is in line
with Section 315 of the Investment and Securities Act (ISA) 2007 and the SEC Rules and Regulations.
The Insider Trading Policy provides Directors, Officers and employees of Dangote Cement with guidelines regarding
trading in shares or securities of the Company. The Company issues a “close period” notification to all relevant staff,
Directors and entities at least two weeks prior to the anticipated date of a Board meeting where non-public
information or other information capable of impacting the shares or securities of the Company is to be discussed.
This close period lapses 24 hours after the information is made public in line with the Nigerian Stock Exchange
(NSE) rules.
Having enquired, I can confirm that all our Directors complied with the Insider Trading Policy during all the close
periods throughout the year 2018.
Board Reporting This provides guidance on information to be provided by Senior Management to the Board and Board
Framework Committees, to aid the discharging of their roles and responsibilities in line with their respective charters and
leading practices, throughout the course of the year.

01 02 03 04
Board policy Description

Annual Agenda Cycle This represents the minimum agenda to be considered by the Board and Board Committees at any point in time
during the year considering the current information needs of the Board. Additional matters requiring the Board’s
attention may be added during the year.
Board Tenure Policy This outlines the criteria for ensuring the periodic rotation and appointment of Board members in order to retain
valuable skills, maintain continuity of knowledge and experience and introduce people with new ideas and expertise.
Group Executive This Charter governs the operations of the Group Executive Committee (ExCo) of Dangote Cement Plc.
Committee Charter
Subsidiary Governance This articulates the structures, policies and processes that will assist the Board of Directors in the governance
Framework and control of subsidiary companies, with the goal of enhancing its shareholder value and achieving the Company’s
vision, strategic objectives and business goals.
Succession This policy describes the process of identifying, assessing and developing successors for critical positions in
Planning Policy the Company.
The focus of this policy is to ensure that highly qualified people are available to fill vacancies at Executive
Management level within the Company, as and when needed. It seeks to avoid hasty decision making or the
creation of vacuums when vacancies arise in key management positions.
Complaints This policy has been designed in line with the requirements of the SEC’s Rules Relating to the Complaints Management
Management Policy Framework of the Nigerian Capital Market. It defines a transparent procedure for receiving, responding to, monitoring and
resolving complaints and enquiries from shareholders of Dangote Cement in a timely and efficient manner.
The policy enables shareholders of Dangote Cement to direct any complaints or enquiries to the Registrar (United
Securities Limited, 10, Amodu Ojikutu Street, Victoria Island, Lagos, Nigeria; [email protected])
or to the Company Secretary (Dangote Cement Plc, Union Marble House, 1 Alfred Rewane Road, Ikoyi, Lagos
([email protected]), depending on the nature of the complaint.
It is our policy to acknowledge complaints within 24 hours of receipt and communicate the final resolution to the
complainant within ten business days of receiving the complaint.
Executive Management This policy seeks to create a strong link between performance and reward by providing a variable/at risk element of
Remuneration Executive remuneration that focuses on performance over a period of one year. It is designed to encourage and stimulate
Framework enhanced performance among Senior Executives so as to increase the short and long-term profitability of the Company.
Whistle Blowing Policy At Dangote Cement, we continually strive to create a work environment where employees, contract workers,
vendors, service providers, customers and other stakeholders have the opportunity to make confidential disclosures
on misconduct, irregularities or malpractice, without fear of harassment and/or victimisation and with the
assurance that their concerns will be taken seriously and investigated, and appropriate action will be taken.
In line with Section 32 of the SEC Code and international best practice in corporate governance, the Board has
established a Whistle Blowing Policy to enable staff, in confidence, to raise concerns about possible improprieties in
financial and other matters and to do so without fear of reprisal, provided that such concerns are raised in good faith.
Employees and other stakeholders are encouraged to report incidents of misconduct in a confidential and
anonymous manner through the internal reporting channels (i.e. Line Manager, Head of Department and Group
CEO) and/or the outsourced KPMG Ethics Line.
The Board subscribes to the KPMG Ethics Line to strengthen confidence in our Whistle Blowing Policy.
The KPMG Ethics Line contact details are: 0703 000 0026, 0703 000 0027, 0808 822 8888, 0708 060 1222,
0809 993 6366, or email: [email protected].
The Board has delegated oversight over whistle blowing to the Audit, Compliance and Risk Management Committee.
All matters reported are investigated and reported to the Committee including the actions taken.
Statistics on the volume and general nature of all disclosures made are periodically reported to the Committee, which
has the power to request further information, conduct its own inquiries or order additional action as it sees fit.
Dangote Safety This describes mandatory safety rules and regulations applicable to all staff, contractors and visitors.
Golden Rule
Group HSSE Incident This describes the arrangement and requirements for reporting, classification, escalation and investigation of
Reporting and health, safety, security and environment (HSSE) incidents across Dangote Group.
Investigation Standard
Group HSSE Performance This ensures that Dangote Cement keeps track of, and regularly reports on, the performance of its HSSE KPIs in
Reporting Standard order to support the decision-making process of the business.
Group HSSE Risk These ensure that occupational HSSE-related risks and opportunities are managed in an effective manner, and
Management Standards that the Group adopts a rigorous risk analysis process to make informed and productive decisions.
Compliance with SEC disclosure requirements
Overview
At Dangote Cement, we aspire to maintain high standards of corporate governance, both at Board level and throughout the
Group. Increasingly, good governance includes the consideration of our impacts on society and the environment and whether
we are operating in a sustainable way.
We aim to comply with, and exceed where practicable, all applicable legislation, regulations and codes of practice as they relate
to sustainable operations. We will integrate sustainability considerations into all our business decisions and ensure that our staff,
clients and suppliers are fully aware of our Sustainability Policy.
We are committed to implementing and improving the Sustainability Policy across all office and site activities. In commitment to this,
we aimed to comply with the provisions of the SEC’s National Code of Corporate Governance (“the Code”) throughout 2018 and
will progressively act in accordance with the Code’s sustainability provisions highlighted in Sections 28 and 32 respectively.
Compliance by the Company with each principle and provision of the Code on sustainability issues is set out below.
Requirement of the SEC Code

of Corporate Governance for
Public Companies Dangote Cement compliance statement
Dangote Cement should pay adequate • We recognise our commitment to our employees and workforce. As a result, we
attention to the interests of its strive to respect the dignity of our employees and their rights to decent
stakeholders such as its employees, working conditions.
its host community, the consumers
• We aim to have community stakeholder engagement plans in place which will allow
and the general public.
us to implement our journey towards sustainable development.
Dangote Cement should demonstrate
sensitivity to Nigeria’s social and
cultural diversity and should as much
as possible promote strategic national
interests as well as national ethos and
values without compromising global
aspirations where applicable.
Dangote should recognise corruption • Dangote Cement is committed to fighting bribery and corruption in all high-risk
as a major threat to business and to countries in which we operate.
national development and therefore as
• We have an Anti-Bribery and Anti-Corruption Policy which is part of the overall
a sustainability issue for businesses in
Anti-Fraud Compliance Programme. It aims to align with all relevant acts, codes,
Nigeria. Companies, boards and individual
laws, guidelines and policies designed to prevent, detect and respond to issues of
directors must commit themselves to
corruption and bribery.
transparent dealings and to the
establishment of a culture of integrity • The policy demonstrates the Company’s zero tolerance for all forms of fraud
and zero tolerance for corruption and including but not limited to bribery, corruption, asset misappropriation and financial
corrupt practices. statement fraud.
• Details of this have been included in the Corporate Governance Report of the
Annual Report.
The Board of Dangote Cement should • The Board of Directors is committed to promoting sustainability. Concern for the
report annually on the nature and extent environment and promoting a broader sustainability agenda are integral to the
of its social, ethical, safety, health and Company’s professional activities and the management of the organisation.
environmental policies and practices.
• We have provided details of our sustainability efforts throughout this Annual Report.
Disclosure of Dangote Cement’s • These are outlined in the Corporate Governance report of this Annual Report.
business principles and codes of
practice and efforts towards
implementation of the same.

01 02 03 04
Overview continued
Description of workplace accidents, • The Company continuously strives to improve its operations to ensure a safe
fatalities and occupational and safety working environment. Safety and environment workshops are organised for all
incidents against objectives and senior employees with a broad focus on good housekeeping to ensure a good and
targets and a suitable explanation safe working environment. Firefighting and prevention equipment are installed in
where appropriate. strategic locations in the offices and plants.
• We place health and safety at the centre of everything we do. Our aim is zero harm,
and we act to improve the health of employees, contractors, third parties and
communities. Our target is to achieve zero accidents.
• The workplace accidents monitoring and reporting we have include:
i. lost-time accidents; and
ii. fatal accidents.
• In line with Company policy, any accident or injury sustained by any employee in the
course of executing his/her work must be reported immediately to his/her immediate
supervisor, who will ensure that appropriate medical attention is given to such an employee.
• All employees are expected to abide by the Company’s Safety Policy which
emphasises that employees must make use of the protective equipment provided
for their use during the working hours.
• Employees are not allowed to operate any machine/equipment unless they have
been trained to do so and have been authorised by their supervisor.
Disclose Dangote Cement’s policies, • We have a policy on HIV/AIDS, which will be applicable and implemented across
plans and strategy of addressing and the Company and all subsidiaries.
managing the impact of HIV/AIDS,
• We do not discriminate against staff with HIV/AIDS or any other ill health. Periodic
malaria and other serious diseases on
medical tests are conducted on staff and all ailing staff are treated in the Company’s
the Company’s employees and
in-plant medical clinic or referred to Company-retained hospitals. They are allowed
their families.
to return to their duties as soon as they are fit in line with a medical report.
Application, in Dangote Cement’s • We will ensure that the adverse impact of our operations is minimal on the environment.
operations, of options with the most
• Our plants are designed to perform at better than European standards of emissions,
benefit or least damage to the environment,
dust control and noise abatement. As outlined elsewhere in this report, we plan to
particularly for companies operating in
introduce global standards of sustainability reporting from the beginning of 2017, so
disadvantaged regions or in regions
that we measure and disclose key variables such as CO2 emissions, dust control
with delicate ecology in order to
and water usage.
minimise the environmental impact of
the Company’s operations. • We believe our focus on environmental care will bring advantages as African
countries increasingly impose stronger regulations to protect the environment, thus
obliging other operators to invest more in pollution control.
The nature and extent of employment • We are developing a gender-balanced and inclusive work environment where
equity and gender policies and diverse talent can thrive and contribute to superior business results.
practices, especially as they relate to
• There is gender employment equity in the Company especially at the executive
the executive level opportunities.
level. There are no discriminatory gender policies and practices.
• In line with Company policy, the organisation has equal regard for all its employees
irrespective of race, colour, religion, sex or ethnic background.
• Suitability for the job position or advancement in the organisation shall be based
purely on qualification and merit, job knowledge, relevant experience, analytical/
practical skills, good conduct and character, sincerity, hardworking nature and
leadership qualities amongst other relevant requirements.

Compliance with SEC disclosure requirements continued
Overview continued
Information on the number and • We believe in unity in diversity and accordingly we seek to employ and retain the
diversity of staff, training initiatives, best human resources irrespective of disability, gender, race, ethnic origin or
employee development and the religion. We strive to provide employees with an atmosphere that promotes their
associated financial investment. productivity and develops their potential.
• In 2018, the Nomination Committee continued to focus on gender diversity,
following a Board review in 2015 that acknowledged the need for diversity in its
composition and, in particular, the need for a stronger representation of women.
• We will champion diversity in our sector and we want to promote equality and
diversity at Dangote Cement.
• Some of the Company’s staff training initiatives embarked upon include:
management and soft skills programmes, functional and non-technical skills,
employee induction, IT skills, technical skills, health, safety and environment
amongst others.
• In 2018 we continued to roll out the business transformation initiative begun in
2015. This had the HR team embarking on a series of organisational development
programmes to ensure the achievement of this initiative.
• We have embarked on a series of programmes that will ensure that our talent pool
is adequately developed and retained and also ensure that we attract the best
calibre of people.
• The Dangote Academy was established in 2010 to provide training in technical and
management skills for employees and people wishing to join the Dangote Group
of companies.
• Key initiatives include the Graduate Engineers Training Scheme (GETS), the
Vocational Training Scheme (VTS) and the Junior Technician Scheme (JTS). This is
listed in the section on “Our People” in the Annual Report.
Disclosure on the conditions and • There are no special conditions or opportunities created for physically challenged
opportunities created for physically persons. However the Company does not discriminate against physically
challenged persons or disadvantaged challenged persons where they prove capable of carrying out the required tasks.
individuals.
• There are some physically challenged persons currently in the employment of
the Company.
The nature and extent of Dangote • We regard the provision of social investment and charitable donations as an important
Cement’s social investment policy. part of our strategy to maintain good relationships with communities and other
stakeholders in all of its operating locations across Africa.
• Some of our initiatives are conducted directly by the Company and its staff, some in
collaboration with third parties and other organisations, while others are managed
by the Aliko Dangote Foundation, which is a non-commercial and charitable organisation
that focuses on empowerment, education, health and disaster relief on behalf of all
companies in the Dangote Group.
Disclosure on Dangote Cement’s • This has been reported above and in the Corporate Governance Report.
policies on corruption and related
issues and the extent of the compliance
with the policies and the Company’s
Code of Ethics.

01 02 03 04
Notice of 10th Annual General Meeting
Notice is hereby given that the 10th Annual General Meeting Unclaimed Share Certificates and Dividend Warrants
(AGM) of Dangote Cement Plc will be held on Monday, All Shareholders are hereby informed that the Registrars of the
June 17, 2019, at Zinnia Hall, Eko Convention Centre, Company are holding Share Certificates and Dividend Warrants
Eko Hotels & Suites, Victoria Island, Lagos at 11.00 a.m. which have been returned by the Post Office as “unclaimed”.
to transact the following business: Some Dividend Warrants sent to Shareholders’ registered
addresses are yet to be presented for payment or returned to
Agenda the Registrars of the Company for validation. All Shareholders
Ordinary Business are encouraged to complete e-dividend Mandate Form to
1. To receive the audited Financial Statements for the year ensure that all outstanding dividends are paid electronically.
ended 31st December 2018 and the Reports of the Audit Committee
Directors, Auditors and the Audit Committee thereon; In accordance with Section 395(5) of the Companies and
2. To declare a dividend; Allied Matters Act, CAP C20 LFN 2004, a shareholder may
nominate another shareholder for appointment as member
3. To elect or re-elect Directors; of the Audit Committee by giving notice to the Company
4. To authorize the Directors to fix the remuneration Secretary at least 21 days before the Annual General Meeting.
of the Auditors; E-Dividend
5. To elect members of the Audit Committee. Notice is hereby given to all Shareholders to open bank
accounts for dividend payment. A detachable application
Special Business form for e-dividend is attached to the Annual Report to enable
To consider and if thought fit, pass the following resolution all Shareholders furnish their accounts to the Registrars as
as an ordinary resolution of the Company; soon as possible.
6. To approve the remuneration of Directors. Rights of Securities Holders to ask Questions
Securities holders have a right to ask questions not only at
Notes: the Annual General Meeting, but also in writing prior to the
Proxies meeting. Questions should be submitted to the Company
A member of the Company entitled to attend and vote at Secretary at the Company’s registered office by the day
the meeting is entitled to appoint a proxy to attend and vote before the Annual General Meeting is held.
instead of him/her. A proxy need not be a member of the
Company. A proxy for an organization may vote by a show Electronic Report
of hand and on a poll. To be valid, executed forms of proxy Our Annual Reports are available online for viewing and
should be deposited at the Registered Office of the Company download from our website at www.dangotecement.com
or with the Registrars, United Securities Limited, 10, Amodu By the order of the Board of Directors.
Ojikutu Street, Off Adeola Odeku Street, Victoria Island, Lagos
not later than 48 hours before the time of holding the meeting.
A blank proxy form is attached to the Annual Report.
Closure of Register of Members
Notice is hereby given that the Register of Members and the Mahmud Kazaure
Transfer Books of the Company will be closed from Tuesday, Company Secretary
June 4, 2019 to June 10, 2019, both days inclusive.
Dividends and closure of Register of Members REGISTERED OFFICE
If the Dividend recommended by the Directors is approved by Union Marble House,
members at the Annual General Meeting, dividend will be paid 1, Alfred Rewane Road, P.O. Box 40032,
on Tuesday, June 18, 2019 to shareholders whose names Falomo, Ikoyi, Lagos.
appear in the Company’s Register of Members at the close Dated this 25th February 2019
of business on Monday, June 03, 2019.

Directors and professional advisers
Directors
Aliko Dangote Chairman
Engr. Joseph Makoju Mni, OFR. Group Chief Executive Officer
Brian Egan Group Chief Financial Officer
Olakunle Alake Non-Executive Director
Sani Dangote Non-Executive Director
Abdu Dantata Non-Executive Director
Devakumar Edwin Non-Executive Director
Fidelis Madavo Non-Executive Director
Ernest Ebi Independent Non-Executive Director
Emmanuel Ikazoboh Independent Non-Executive Director
Viswanathan Shankar Non-Executive Director
Dorothy Ufot Independent Non-Executive Director
Cherie Blaire CBE, QC Independent Non-Executive Director
Sir Michael Davis Independent Non-Executive Director
Douraid Zaghouani Non-Executive Director
Group General Counsel and Company Secretary

Mahmud Kazaure
Joint Auditors
Deloitte & Touche
Chartered Accountants
Plot GA 1, Ozumba Mbadiwe Avenue
Victoria Island,
Lagos, Nigeria
Ahmed Zakari & Co.
Chartered Accountants
5th Floor, African Alliance Building
F1, Sani Abacha Way, Kano
Nigeria
Principal Bankers
Access Bank Plc
First Bank of Nigeria Plc
Guaranty Trust Bank Plc
Zenith Bank Plc
United Bank for Africa Plc
Primary Legal Advisers

Banwo & Ighodalo
Olaniwun Ajayi
Fola Sowemimo

01 02 03 04
Corporate information
Capital Market Information

Dangote Cement Plc is listed on the main board of the Nigerian Stock Exchange (NSE).
Each share carries one voting right
NSE Ticker Symbol DANGCEM
Bloomberg Code DANGCEM:NL
Reuters Code DANGCEM:LG
Date Listed 26th October, 2010
Market Capitalisation (25-02-19) ₦3,280,297,675,270
Outstanding Shares 17,040,507,404
Free Float 14.75%
Registration Information
RC Number 208767
Date of Incorporation 4th November, 1992
Registered Office
Union Marble House
1, Alfred Rewane Road
P.O. Box 40032
Falomo, Ikoyi
Lagos, Nigeria
Registrars
United Securities Limited
10, Amodu Ojikutu Street
Victoria Island
Lagos, Nigeria
For any queries regarding Dangote Cement please contact:
Investor Relations
Carl Franklin
+44 207 399 3070
[email protected]
Corporate Communications
Anthony Chiejina
+234 1 448 0815
[email protected]

Donations and sponsorships
Amount
Beneficiary ₦
Senegal
Ramadan (baskets) to local authorities 9,058,683
Ramadan (suger & rice) for villagers 7,059,525
Mecca pilgrimage to communities around the plant 45,105,993
Rams for villagers and authorities for Tabaski Festival 4,404,394
Educational kits for schools 643,479
Youth & sport sponsorship 296,750
Religious & women's associations 1,624,316
School and maternity construction for the community 42,441,720
Cement for mosque and church construction 9,025,653
Tanzania
TUICO 153,038
Nigerian High Commission in Tanzania 153,038
Ndanda Football Club 1,530,379
Sumatra 18,365
Local communities sponsorship 18,248,241
Zambia
Cement for Chief Chiwala 1,737,746
Farming inputs donated to community inhabitants around the plant 468,031
Donation to Chief Chiwala for the local community 3,406,079
Ethiopia
Displaced people in southern Oromia region 25,353,477
Supply of new desks in Ula Gora schools in Oromia region 378,401
School construction for the communities at Gatira Nabe in Oromia region 2,976,486
Construction of a co-operative center at Inchini 1,548,697
Construction of school at Reji Mokoda 8,639,984
Meta Walkite food security 633,837
Office furniture for Holeta town police station 4,436,858
Construction of elementary school at Ula Gora 6,250,177
Football team in Mugher 101,414
Construction of police stations at Dugda Meki Pumice 3,585,020
Woreda district environmental care 1,181,726
Supplies of Books for Reji Mekoda elementary school 778,486
South Africa
Sponsorship for the trail run at Lichtenburg Waterfees 113,243
Cameroon
To Douala General Treasurer for humanitarian support to suffering people in the north-west and
south-west regions 24,989,470
Construction of health center/pharmacy for Batoke community in the south-west region 10,423,983
Back-to-school event in Deido, Douala for school children and youth 4,997,894

01 02 03 04
Amount
Beneficiary ₦
Nigeria
Kogi state journalists 1,000,000
Donation to Kogi state Police Command 500,000
Financial assistance towards completion of mosque in Gboko 100,000
Help for internally displaced persons in Benue and Nasarawa 50,000,000
Nigerian Mining and Geosciences Society (NMGS) for 54th Annual International Conference 2,000,000
The Africa Center, New York 150,000,000
Bola Tinubu Colloquium 5,000,000
Nigeria Industrial Policy & Competitiveness Advisory Council (NIPCAC) 2,500,000
Manufacturers' Association Of Nigeria (MAN) 30,000,000
The Nigerian Society Of Engineers 2,000,000
NYSC orientation course program 150,000
Hudahuda Publishing Company Ltd for books to schools 50,000,000
150 cars for Nigerian police 646,428,000
Eunice Spring of Life Foundation 10,000,000
Sponsorship for Gala Night/Command Performance of United Nations World tourism Organisation
(UNWTO) 15,000,000
Gusau Institute 5,000,000
Nigerian Academy of Neurological Surgeons (NANS) towards Hosting Of 3rd CAANS congress 5,000,000
CASA AIBA (Nigeria) 2,000,000
National Union of Chemical Footwear Rubber, Leather & Non-Metalic Products' employees
for 27th Annual Industrial Relations 250,000
Nigerian Bar Association support fund for lawyers affected by insurgency in the North-East Nigeria 25,000,000
Sponsorship of Dala Hard Court National Tennis Championship for 2018 10,000,000
Total 1,287,733,424

Board and Committee meeting dates and attendance
Board meetings – Directors

Board meeting
Director Appointed 27/02/18 19/03/18 20/04/18 20/06/18 19/07/18 19/10/18 05/12/18
Aliko Dangote
Chairman 4th Nov 2002       
Engr. Joseph Makoju Mni, OFR.
Group Chief Executive Officer 2nd Dec 2010       
Olakunle Alake
Non‑Executive Director 22nd July 2005       
Sani Dangote*
Non‑Executive Director 22nd July 2005       
Abdu Dantata
Non‑Executive Director 22nd July 2005       
Ernest Ebi
Independent Non-Executive Director 30th Jan 2014       
Devakumar Edwin
Non-Executive Director 22nd July 2005       
Emmanuel Ikazoboh
Independent Non-Executive Director 30th Jan 2014       
Fidelis Madavo
Non‑Executive Director 30th July 2014       
Olusegun Olusanya
Independent Non-Executive Director 2nd Dec 2010       
Dorothy Ufot
Independent Non-Executive Director 19th Apr 2016       
Douraid Zaghouani
Non-Executive Director 29th April 2015       
Brian Egan
Executive Director, Finance 27th July 2017       
Viswanathan Shankar
Independent Non-Executive Director 9th Dec 2017       
Cherie Blair**
Independent Non-Executive Director 20th June 2018 n/a n/a n/a    
Sir Michael Davis**
Independent Non-Executive Director 20th June 2018 n/a n/a n/a    
* Sani Dangote has not attended any meetings in 2018 owing to medical absence.
** Cherie Blair and Sir Michael Davis were officially admitted to the Company on 20th June 2018.

01 02 03 04
Audit, Compliance and Risk Management Committee

Meeting attendance
Director 14/02/18 17/04/18 12/7/18 12/10/18
Ernest Ebi (Chairman)    

Sani Dangote    
Olakunle Alake    
Devakumar Edwin    
Olusegun Olusanya    
Emmanuel Ikazoboh    
Dorothy Ufot    
Fidelis Madavo    
Finance and General Purpose Committee

Meeting attendance
Director 26/02/18 18/04/18 18/07/18 18/10/18
Olusegun Olusanya (Chairman)    

Sani Dangote    
Ernest Ebi    
Devakumar Edwin    
Fidelis Madavo    
Douraid Zaghouani    
Nomination Committee
Meeting attendance
Director 20/04/18 19/10/18
Aliko Dangote (Chairman)  

Ernest Ebi  
Olusegun Olusanya  
Emmanuel Ikazoboh  
Fidelis Madavo  

Board and Committee meeting dates and attendance continued
Remuneration Committee
Meeting attendance
Director 14/02/18 17/04/18 16/07/18 11/10/18
Emmanuel Ikazoboh (Chairman)    

Sani Dangote    
Abdu Dantata    
Devakumar Edwin    
Emmanuel Ikazoboh    
Olusegun Olusanya    
Dorothy Ufot    
Technical Committee
Meeting attendance
Director 26/02/18 18/04/18 18/07/18 18/10/18
Fidelis Madavo (Chairman)    

Abdu Dantata    
Devakumar Edwin    
Douraid Zaghouani    
Statutory Audit Committee

Meeting attendance
Director 26/02/18 19/03/18 18/07/18 18/10/18
Robert Ade-Odiachio (Chairman)    

Nicholas Nyamali    
Sheriff Yusuf    
Olusegun Olusanya    

01 02 03 04
Glossary of abbreviations
AGM Annual General Meeting

CAC Corporate Affairs Commission
CBN Central Bank Of Nigeria
CEO Chief Executive Officer
CFO Chief Financial Officer
CEMAC Central African Economic and Monetary Community
CMAN Cement Manufacturer Association of Nigeria
COREN Council for the Regulation of Engineering in Nigeria
CORBON Council of Registered Builders of Nigeria
CO2 Carbon dioxide
DIL Dangote Industries Limited
EBITDA Earnings before interest, taxes, depreciation and amortisation
EBIT Earnings before interest and tax
ECOWAS Economic Community of West African States
EHSS Environmental Health, Safety and Security
GDP Gross Domestic Product
GETS Global Environment Telecommunications Service
IFC International Finance Corporation
IMF International Monetary Fund
ISO International Standards Organisation
LPFO Low Pour Fuel Oil
NIOB Nigerian Institute of Building
NIQS Nigerian Institute of Quantity Surveyors
NIS Nigeria Industrial Standards
NSE Nigerian Stock Exchange
Mt Million Tonnes
Mta Million tonnes of capacity
OEM Original Equipment Manufacturer
OHSMS Occupational Health and Safety Management System
Q Quarter
SEC Securities and Exchange Commission
SEPCEM Sephaku Cement
SON Standards Organisation of Nigeria
SOX Sulfur Oxides
SAP System Application Package
UEMOA West African Economic and Monetary Union
VTS Vaccination Tracking System

Glossary of abbreviations continued
CGRS Corporate Governance Rating System

ERM Enterprise Risk Management
ICD Investment Corporation of Dubai
IASB International Accounting Standards Board
CAMA Company and Allied Matters Act
FRC Financial Reporting Council
GCEO Group Chief Executive Officer
VRM Vertical Rolling Mill
LPG Liquid Petroleum Gas
CBI Convention for Business Intelligence
EMS Environmental Management System
HSE Health, Safety & Environment
KPI Key Performance Indicator
DRC Democratic Republic of Congo
BACRMC Board Audit, Compliance and Risk Management Committee

01 02 03 04
Mandate for E-Dividend Payment
Date (DD/MM/YYYY) Kindly tick & quote your shareholder account no. in the box below
The Registrar, Name of Company Shareholder account no:

United Securities Limited,
10, Amodu Ojikutu Street,
Victoria Island, Lagos, Nigeria.
Dear Sir/Madam,
Kindly find below my/our bank details for the purpose of electronic payments of dividends due to me/us. I/We confirm that all
information supplied is to the best of my/our knowledge correct and hereby indemnify United Securities Limited against any loss
that may arise from their adoption of the details as supplied hereunder.
Surname/company name:
Other names (for individual shareholder):
Present postal address:
City state:
E-mail address 1:
E-mail address 2:
Mobile (GSM) phone number:
Bank name (section to be completed by your bank):
Bank address:
Bank account number:
Bank sort code:
I/We hereby request that from now, all dividend warrant (s) due to me/us from my/our holdings in all the companies indicated
above be mandated to my/our Bank named above.
Shareholder`s signature or thumbprint Shareholder`s signature or thumbprint
Company Seal/ Incorporation number (Corporate Shareholder)
AUTHORISED SIGNATURE & STAMP OF BANKERS
PLEASE NOTE THAT THE SECTION FOR YOUR BANK ACCOUNT DETAILS HAS TO BE COMPLETED BY YOUR BANK
Kindly return the duly completed form to the Registrar, United Securities Limited at the address stated below
United Securities limited. RC 126257

10, Amodu Ojikutu Street, Off Saka Tinubu Street, Victoria Island, P.M.B. 12753 Lagos, Nigeria. Tel: +234(1)271-4566, 271-4567
Website: www.unitedsecuritieslimited.com; Email: [email protected]
UNITED SECURITIES LIMITED hereby disclaims liability or responsibility for any errors/omissions/misstatements in any document transmitted electronically.

01 02 03 04
Proxy Form
Dangote Cement Plc Rc: 208767

The 10th Annual General Meeting (AGM) of Dangote Cement Plc will be held on Monday, June 17, 2019, at Zinnia Hall,
Eko Convention Centre, Eko Hotels & Suites, Victoria Island, Lagos at 11.00 a.m.
I/We .............................................................................................................................................................................................
of ..................................................................................................................................................................................................
being a shareholder of Dangote Cement Plc hereby appoint.....................................................................or failing him/her
.................................................................................................................... or .............................................................................
as my/our Proxy to act and vote for me/us on my/our behalf at the 10th Annual General Meeting to be held on 17th June, 2019,
and at any adjournment thereof.
Dated the ....................................................... 2019 Shareholder’s signature .............................................................................
No. Ordinary business For Against
I/We desire this proxy 1. To receive the audited Financial Statements for the year ended 31st December
to be used in favour of/ 2018 and the Reports of the Directors, Auditors and Audit Committee thereon
or against the
2. To declare a dividend
resolution as indicated
alongside (strike out 3. To elect or re-elect Directors.
whichever is not Re-election as Director of Aliko Dangote, who is retiring by rotation
applicable) Re-election as Director of Abdu Dantata, who is retiring by rotation
Re-election as Director of Olakunle Alake, who is retiring by rotation
Re-election as Director of Ernest Ebi, who is retiring by rotation
4. To authorize the Directors to fix the remuneration of the Auditors
5. To elect members of the Audit Committee
Special business
6. To approve the remuneration of Directors

Please indicate with an “X” in the appropriate column, how you wish your votes to be cast on the resolutions set out above. Unless otherwise instructed, the Proxy will vote or
abstain from voting at his/her discretion.
This proxy form should NOT be completed and sent to the registered office if the member will be attending the meeting.
Note:
i. A member (shareholder) entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy in his stead. All proxy form should be deposited at the registered
office of the Registrar (as in notice) not later than 48 hours before the meeting.
ii. In the case of joint shareholders, any of them may complete the form, but the names of all joint shareholders must be stated.
iii. If the shareholder is a Corporation, this form must be executed under its Common Seal or under the hand of some officers or an attorney duly authorized.
iv. The proxy must produce the admission card sent with the notice of the meeting to gain entrance to the meeting.
v. It is a legal requirement that all instrument of proxy to be used for the purpose of voting by any person entitled to vote at any meeting of the shareholders must bear
appropriate stamp duty from the Stamp Duties office (not adhesive postage stamps).
Before posting this form, please tear off this part and retain it for admission to the meeting.
Please be advised that to enable a Proxy entrance to the meeting, the Proxy
Form is to be duly completed and delivered to the Company Secretary not
Admission card later than 48 hours before the time fixed for the meeting.
Name and address Number of shares held Number of shareholder(s)
Please admit .............................................................. to the 10th Annual General Meeting of Dangote Cement Plc to be held at
Zinnia Hall, Eko Convention Centre, Eko Hotels & Suites, Victoria Island, Lagos on Monday, June 17, 2019, at 11.00 a.m.
Signature of person attending: ....................................................................................
This admission card should be produced by the shareholder or his/her proxy in order to obtain entrance to the Annual General Meeting.
You are requested to sign this card at the entrance in the presence of the Company Secretary or his Nominee on the day of the Annual General Meeting.

The Registrar,
United Securities Limited
10, Amodu Ojikutu Street,
Victoria Island,
Lagos, Nigeria

Dangote Cement Plc Annual Report 2018

DangoteCementPlc 2018 AnnualReport

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Dangote Cement Plc

Annual Report 2018

Annual Report around the 7 Sustainability

Strategic report Corporate governance 131 Consolidated and separate statement

4 Dangote Cement Plc Annual Report 2018

Revenue up 11.9% Dividend up 52.4%

₦901.2B ₦16.00 per share

2017 ₦805.6B 2017 ₦10.50

2016 ₦615.1B 2016 ₦8.50

EBITDA up 12.1% Net debt/EBITDA

2017 ₦388.1B 2017 0.52x

2016 ₦257.2B 2016 0.94x

Operational highlights Read more on pages 26–47

Group sales volumes Gas turbines now operating

Nigeria sales volumes up Innovative new products

Pan-African sales volumes Enhanced Group-wide

Annual Report 2018 Dangote Cement Plc 01

“I’m proud to work

Read more on pages 48–57

Vision Mission Values

02 Dangote Cement Plc Annual Report 2018

Leading cement producer in Industry-leading margins

45.6Mta capacity with Robust governance, with

Significant competitive Fully committed to

One of the largest A unique investment

Annual Report 2018 Dangote Cement Plc 03

The Dangote Group

Driven by the goal of achieving the highest levels of governance, the

Cultural Economic Operational

Read more on pages Read more on pages

04 Dangote Cement Plc Annual Report 2018

“The Dangote Way reflects

Social Environmental Financial Institutional

Annual Report 2018 Dangote Cement Plc 05

Serving our continent

of Sub-Saharan Africa’s key markets for 10 01

cement, helping the continent become 07

Our regional strategy

thriving economies, growing populations and a 09

pressing need for housing and infrastructure.

Read more on pages 26–47

A track record of growth

06 Dangote Cement PLC Annual Report 2018

Type of operations Clinker

01 Nigeria 02 Tanzania 03 South Africa

2017 ₦552.4B 2017 ₦16.7B 2017 ₦57.3B

2016 ₦426.1B 2016 ₦12.0B 2016 ₦41.4B

Capacity Capacity Capacity

04 Ethiopia 05 Cameroon 06 Congo

2017 ₦54.5B 2017 ₦43.2B 2017 ₦1.0B

2016 ₦40.1B 2016 ₦31.2B

Capacity Capacity Capacity

07 Ghana 08 Senegal 09 Zambia

2017 ₦28.1B 2017 ₦28.8B 2017 ₦25.1B

2016 ₦32.9B 2016 ₦19.9B 2016 ₦17.0B

Capacity Capacity Capacity

10 Sierra Leone Future projects

Annual Report 2018 Dangote Cement PLC 07

“I’m proud to work

“The Dangote Way reflects

“I’m not just making cement, I’m helping

“We don’t just make cement, we support

“Good quality control is Using high technology