DANGOTE CEMENT : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

DANGOTE CEMENT PLC

UNAUDITED INTERIM FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND NINE MONTHS ENDED 30 SEPTEMBER 2023

Dangote Cement Plc

For the three months and nine months ended 30 September 2023

CONTENTS	PAGE
Condensed consolidated and separate statements of profit or loss	2
Condensed consolidated and separate statements of comprehensive income	3
Condensed consolidated and separate statements of financial position	4
Condensed consolidated statement of changes in equity	5
Condensed separate statement of changes in equity	6
Condensed consolidated and separate statements of cash flows	7
Notes to the condensed consolidated and separate interim financial statements	8 - 26

Dangote Cement Plc

Condensed consolidated and separate statements of profit or loss

For the three months and nine months ended 30 September 2023

					Group						Company
		3 months		9 months	3 months	9 months		3 months		9 months	3 months	9 months
		ended		ended	ended	ended	Year ended	ended		ended	ended	ended	Year ended
	Notes	30/09/2023		30/09/2023	30/09/2022	30/09/2022	31/12/2022	30/09/2023		30/09/2023	30/09/2022	30/09/2022	31/12/2022
		₦'million		₦'million	₦'million	₦'million	₦'million	₦'million		₦'million	₦'million	₦'million	₦'million
Revenue	3	563,769		1,514,601	369,219	1,177,256	1,618,323	314,539		933,084	267,673	890,654	1,205,401
Production cost of sales	5	(259,655)		(642,743)	(161,370)	(483,831)	(662,890)	(165,716)		(410,380)	(114,824)	(336,854)	(455,122)
Gross profit		304,114		871,858	207,849	693,425	955,433	148,823		522,704	152,849	553,800	750,279
Administrative expenses	6	(28,939)		(74,421)	(16,281)	(50,415)	(79,879)	(12,883)		(36,169)	(8,800)	(27,586)	(42,532)
Selling and distribution expenses	7	(99,415)		(252,640)	(77,590)	(212,862)	(295,234)	(58,565)		(165,475)	(59,602)	(165,043)	(224,925)
Other income	8	5,578		16,635	1,514	3,115	5,333	3,926		13,307	680	2,379	3,550
Impairment of financial assets		(366)		(424)	10	360	223	(349)		(307)	-	338	(705)
Profit from operating activities		180,972		561,008	115,502	433,623	585,876	80,952		334,060	85,127	363,888	485,667
Finance income	9	19,070		20,667	6,833	28,834	38,715	83,128		588,255	45,667	70,566	121,864
Finance costs	9	(41,657)		(91,081)	(19,592)	(54,167)	(76,441)	(30,593)		(73,053)	(15,822)	(44,466)	(62,541)
Net exchange loss on foreign
denominated transactions	9	-		(99,016)	(31,733)	(72,390)	(53,929)	-		-	-	-	-
Gain on net monetary positions	32	6,642		13,312	-	-	29,022	-		-	-	-	-
Share of profit from associate		-		-	-	-	759	-		-	-	-	-
Profit before tax		165,027		404,890	71,010	335,900	524,002	133,487		849,262	114,972	389,988	544,990
Income tax expense	11.1	(66,082)		(127,342)	(30,013)	(122,799)	(141,691)	(54,049)		(101,897)	(27,087)	(116,411)	(142,133)
Profit for the period/year		98,945		277,548	40,997	213,101	382,311	79,438		747,365	87,885	273,577	402,857
Profit for the period/year
attributable to:
Owners of the Company	10	92,234		270,837	38,891	209,513	375,988	79,438		747,365	87,885	273,577	402,857
Non-controlling interests		6,711		6,711	2,106	3,588	6,323	-		-	-	-	-
		98,945		277,548	40,997	213,101	382,311	79,438		747,365	87,885	273,577	402,857
Earnings per share, basic and
diluted (Naira)	10	5.48		16.08	2.30	12.41	22.27	4.72		44.38	5.21	16.20	23.87

2

Dangote Cement Plc

Condensed consolidated and separate statements of comprehensive Income

For the three months and nine months ended 30 September 2023

			Group					Company
	3 months	9 months	3 months	9 months		3 months		9 months	3 months	9 months
	ended	ended	ended	ended	Year ended	ended		ended	ended	ended	Year ended
	30/09/2023	30/09/2023	30/09/2022	30/09/2022	31/12/2022	30/09/2023		30/09/2023	30/09/2022	30/09/2022	31/12/2022
	₦'million	₦'million	₦'million	₦'million	₦'million	₦'million		₦'million	₦'million	₦'million	₦'million
Profit for the period/year	98,945	277,548	40,997	213,101	382,311	79,438		747,365	87,885	273,577	402,857
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	(2,311)	392,537	21,341	14,242	23,074	-		-	-	-	-
Other comprehensive income for the
period/year, net of income tax	(2,311)	392,537	21,341	14,242	23,074	-		-	-	-	-
Total comprehensive income for
the period/year	96,634	670,085	62,338	227,343	405,385	79,438		747,365	87,885	273,577	402,857
Total comprehensive income for the
period/year attributable to:
Owners of the Company	93,445	656,254	62,731	226,191	399,106	79,438		747,365	87,885	273,577	402,857
Non-controlling interests	3,189	13,831	(393)	1,152	6,279	-		-	-	-	-
	96,634	670,085	62,338	227,343	405,385	79,438		747,365	87,885	273,577	402,857

3

4

Dangote Cement Plc

Condensed consolidated statement of changes in equity

For the nine months ended 30 September 2023

					Group
					Currency		Attributable	Non -
	Share	Share	Treasury	Retained	translation	Capital	to the owners	controlling	Total
	capital	premium	Shares	earnings	reserve	contribution	of the parent	interests	equity
	₦'million	₦'million	₦'million	₦'million	₦'million	₦'million	₦'million	₦'million	₦'million
Balance at 1 January 2022	8,520	42,430	(9,833)	868,274	53,102	2,877	965,370	18,299	983,669
Profit for the period	-	-	-	209,513	-	-	209,513	3,588	213,101
Other comprehensive income/(loss) for the period,
net of tax	-	-	-	-	16,678	-	16,678	(2,436)	14,242
Total comprehensive income/(loss) for the period	-	-	-	209,513	16,678	-	226,191	1,152	227,343
Payment of dividends	-	-	-	(337,471)	-	-	(337,471)	-	(337,471)
Effect of shares buy-back (Note 30)	-	-	(35,323)		-	-	(35,323)	-	(35,323)
Balance at 30 September 2022	8,520	42,430	(45,156)	740,316	69,780	2,877	818,767	19,451	838,218
Balance at 1 January 2023	8,520	42,430	(45,156)	969,478	76,220	2,877	1,054,369	24,578	1,078,947
Profit for the period	-	-	-	270,837	-	-	270,837	6,711	277,548
Other comprehensive loss for the period, net of tax	-	-	-	-	385,417	-	385,417	7,120	392,537
Total comprehensive income/(loss) for the period	-	-	-	270,837	385,417	-	656,254	13,831	670,085
Payment of dividends	-	-	-	(337,471)	-	-	(337,471)	-	(337,471)
Effect of shares buy-back (Note 30)	-	-	(41,423)	-	-	-	(41,423)	-	(41,423)
Loss on monetary positions (Note 32)	-	-	-	(4,127)	-	-	(4,127)	(1)	(4,128)
Balance at 30 September 2023	8,520	42,430	(86,579)	898,717	461,637	2,877	1,327,602	38,408	1,366,010

5

Dangote Cement Plc

Condensed separate statement of changes in equity

For the nine months ended 30 September 2023

			Company
	Share	Share	Treasury	Capital	Retained	Total
	capital	premium	Shares	contribution	earnings	equity
	₦'million	₦'million	₦'million	₦'million	₦'million	₦'million
Balance at 1 January 2022	8,520	42,430	(9,833)	2,828	1,417,527	1,461,472
Profit for the period	-	-	-	-	273,577	273,577
Other comprehensive income for the period, net of tax	-	-	-	-	-	-
Total comprehensive income for the period	-	-	-	-	273,577	273,577
Payment of dividends	-	-	-	-	(337,471)	(337,471)
Effect of shares buy-back (Note 30)	-	-	(35,323)	-	-	(35,323)
Balance at 30 September 2022	8,520	42,430	(45,156)	2,828	1,353,633	1,362,255
Balance at 1 January 2023	8,520	42,430	(45,156)	2,828	1,482,913	1,491,535
Profit for the period	-	-	-	-	747,365	747,365
Other comprehensive income for the period, net of tax	-	-	-	-	-	-
Total comprehensive income for the period	-	-	-	-	747,365	747,365
Payment of dividends	-	-	-	-	(337,471)	(337,471)
Effect of shares buy-back (Note 30)	-	-	(41,423)	-	-	(41,423)
Balance at 30 September 2023	8,520	42,430	(86,579)	2,828	1,892,807	1,860,006

6

Dangote Cement Plc

Condensed consolidated and separate statements of cash flows

For the nine months ended 30 September 2023

				Group					Company
			9 months	9 months				9 months	9 months
			ended	ended		Year ended	ended	ended	Year ended
	Notes	30/09/2023	30/09/2022	31/12/2022		30/09/2023	30/09/2022	31/12/2022
			₦'million	₦'million		₦'million	₦'million	₦'million	₦'million
Cash flows from operating activities
Profit before tax			404,890	335,900	524,002		849,262	389,988	544,990
Adjustments for:	12, 13
Depreciation and amortisation	& 14		101,754	81,963	120,390		39,699	44,965	60,265
Write off and impairment of property plant and equipment			-	293	1,972		-	(21)	129
Interest expenses	9		90,178	53,393	75,242		72,151	43,694	61,388
Interest & dividend income	9		(20,667)	(28,834)	(38,715)		(63,478)	(58,459)	(78,247)
Net exchange (gain)/loss on borrowings and non-operating
assets			48,041	56,174	25,958		(543,709)	(18,743)	(61,327)
Gain on net monetary assets	32		(13,312)	-	(29,022)		-	-	-
Share of income from associate			-	-	(759)		-	-	-
Change in deferred revenue	25		160	(348)	(332)		2	(299)	(299)
Provisions			4,160	1,201	2,147		807	959	1,261
Provision for employee benefits obligations			505	381	5,328		162	372	5,272
Loss/(gain) on disposal of property, plant and equipment			19	-	(21)		-	-	-
			615,728	500,123	686,190		354,896	402,456	533,432
Changes in:			(127,788)	(70,619)	(70,345)		(65,218)	(52,325)	(44,283)
Inventories
Trade and other receivables			(22,046)	5,596	457		(7,631)	1,657	(1,044)
Trade and other payables			164,098	(54,072)	(22,429)		21,318	(49,201)	(46,199)
Prepayments and other current assets			(55,085)	13,812	(42,316)		115,028	81,376	81,973
Other current liabilities			2,648	9,887	(23,570)		(7,975)	10,718	(26,877)
			577,555	404,727	527,987		410,418	394,681	497,002
Change in lease receivables	17		7,248	7,369	10,614		7,248	7,369	10,614
Income tax paid	11.3		(124,482)	(110,083)	(150,766)		(110,186)	(103,412)	(143,431)
Net cash generated from operating activities			460,321	302,013	387,835		307,480	298,638	364,185
Cash flows from Investing activities			18,619	4,911	37,097		14,550	2,610	33,280
Interest received
Dividend received	9		-	4,707	4,707		-	4,707	4,707
Acquisition of intangible assets	13		(171)	(311)	(307)		(51)	-	(19)
Additional receivables from subsidiaries			-	-	-		(89,486)	(43,756)	(53,822)
Repayment by subsidiaries			-	-	-		72,061	6,689	29,790
Net loans repaid/(obtained) by parent company	21		132,812	(80,312)	(93,812)		132,812	(80,312)	(93,812)
Proceeds from disposal of property, plant and equipment			-	-	106		-	-	-
Acquisition of property, plant and equipment	12		(105,798)	(58,091)	(74,613)		(24,021)	(30,534)	(38,609)
Additions to property, plant and equipment		(68,386)	(49,762)		(65,945)		(24,021)	(18,374)	(26,449)
Change in prepayments for property, plant and equipment			(37,412)	3,831		3,492		-	-	-
Net suppliers' credit obtained/(repaid)			-	(12,160)		(12,160)		-	(12,160)	(12,160)
Net cash used in investing activities			45,462	(129,096)	(126,822)		105,865	(140,596)	(118,485)
Cashflows from Financing activities			(63,754)	(39,425)	(68,840)		(51,031)	(31,221)	(57,432)
Interest paid
Lease payment			(1,987)	(981)	(3,421)		(890)	(860)	(1,300)
Shares buy-back	30		(41,423)	(35,323)	(35,323)		(41,423)	(35,323)	(35,323)
Dividends paid			(337,471)	(337,471)	(337,471)		(337,471)	(337,471)	(337,471)
Loans obtained			267,133	269,192	338,454		246,930	245,818	290,107
Loans repaid			(170,407)	(198,238)	(267,178)		(158,300)	(183,815)	(239,162)
Net cash used in financing activities			(347,909)	(342,246)	(373,779)		(342,185)	(342,872)	(380,581)
Increase/(Decrease) in cash and cash equivalents			157,874	(169,329)	(112,766)		71,160	(184,830)	(134,881)
Cash and cash equivalents at beginning of period/year	22		150,854	263,368	263,368		68,928	203,809	203,809
Effects of exchange rate changes			(4,576)	(7,186)	252		-	-	-
Cash and cash equivalents at end of the period/year	22		304,152	86,853	150,854		140,088	18,979	68,928

7

Dangote Cement Plc

Notes to the condensed consolidated and separate interim financial statements

For the three months and nine months ended 30 September 2023

1 General Information

Dangote Cement Plc ("the Company") was incorporated in Nigeria as a public limited liability company on 4 November 1992 and commenced operations in January 2007 under the name Obajana Cement Plc. The name was changed on 14 July 2010 to Dangote Cement Plc.

Its parent company is Dangote Industries Limited ("DIL" or "the Parent Company"). Its ultimate controlling party is Alhaji Aliko Dangote.

The registered address of the Company is located at 1 Alfred Rewane Road, 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 15.

The condensed consolidated interim financial statements of the Group for the period ended 30 September 2023 comprise the Company and its subsidiaries. The condensed separate interim financial statements of the Company for the period ended 30 September 2023 comprise the Company only.

1.1 Securities trading policy

The Board has established an Insider Trading Policy designed to prohibit dealing in Dangote Cement Plc. shares or securities on the basis of potentially price- sensitive information that is not yet in the public domain. This is in line with the Rules of the NGX, the Investment and Securities Act (ISA) 2007 and the SEC Rules and Regulations. Having enquired, we can confirm that all Directors complied with the Insider Trading Policy during the period under review.

2 Significant accounting policies

The Group and Company's financial statements for the year ended 31 December 2022 have been prepared in accordance with International Financial Reporting Standards as issued by the Internatioanl Accounting Standards Board ("IASB"), and interpretations issued by the International Financial Reporting Interpretations Committee of the IASB (together "IFRS Standards") and requirements of the Companies and Allied Matters Act (CAMA),2020 and the Financial Reporting Council (FRC) of Nigeria Act, 2011.

Dangote Cement Plc. Group has consistently applied the same accounting policies and methods of computation in its condensed consolidated and separate interim financial statements as in its 2022 annual financial statements except for the application of new standards. None of the new standards, interpretations and amendments, effective for the first time from 1 January 2023, have had a material effect on the condensed consolidated and separate interim financial statements.

Standards issued but not yet effective

A number of new standards are issued but not yet effective. Earlier application is permited; however, the Group has not early adopted any of the forthcoming new or amended standards in preparing these condensed consolidated and separate interim financial statements.

Basis of preparation

These condensed consolidated and separate interim financial statements for the three months and nine months ended 30 September 2023 have been prepared in accordance with IAS 34 Interim Financial Reporting, and should be read in conjunction with the Group and Company's last annual consolidated and separate financial statements as at and for the year ended 31 December 2022 ("last annual consolidated and separate financial statements"). They do not include all the information required for a complete set of financial statements prepared in accordance with IFRS Standards. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group and Company's financial position and performance since last annual consolidated and separate financial statements.

The condensed consolidated and separate interim financial statements have been prepared on the historical cost basis except for derivatives which are measured at fair value and balances of entities in hyper-inflation economies. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

Fair values

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability that market participants would take into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure in these condensed consolidated interim financial statements is determined on such a basis, except for leasing transactions that are within the scope of IFRS 16, 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. Derivatives are carried at fair value.

Basis of consolidation

The Group condensed interim financial statements incorporate the financial statements of the Company and its subsidiaries over whom it has control, made up to 30 September 2023. 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 condensed consolidated interim financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed where necessary to align them with the policies adopted by the Group.

Income and expenses of subsidiaries acquired or disposed of during the period are included in the condensed consolidated statement of profit or loss and condensed consolidated statement of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate. Total comprehensive income of subsidiaries is attributed to the owners' of the Company and to the non-controlling interests even if this results in the non- controlling interest having a deficit balance.

In the Company's condensed separate interim financial statements, investments in subsidiaries are carried at cost less any impairment that has been recognised in profit or loss.

8

Dangote Cement Plc

Notes to the condensed consolidated and separate interim financial statements

For the three months and nine months ended 30 September 2023

3 REVENUE

			Group				Company
	3 months		9 months	3 months	9 months	3 months		9 months	3 months	9 months
	ended		ended	ended	ended	ended		ended	ended	ended
Volumes	30/09/2023		30/09/2023	30/09/2022	30/09/2022	30/09/2023		30/09/2023	30/09/2022	30/09/2022
Cement production and bagging capacity	'000 tonnes		'000 tonnes	'000 tonnes	'000 tonnes	'000 tonnes		'000 tonnes	'000 tonnes	'000 tonnes
(for the year)	52,000		52,000	51,550	51,550	29,250		29,250	29,250	29,250
Production volume*	6,576		19,825	6,544	20,384	2,848		9,380	3,588	12,176
Trade cement purchase	103		278	120	322	977		2,626	371	1,243
Decrease/(increase) in stocks**	189		185	(73)	91	84		11	179	62
Sales volume*	6,868		20,288	6,591	20,797	3,909		12,017	4,138	13,481

• includes both cement and clinker volumes
• Decrease/(increase) in stocks refers to the difference between the opening and closing stocks for the period.

An analysis of revenue in naira is as follows:

			Group				Company
	3 months		9 months	3 months	9 months	3 months		9 months	3 months	9 months
	ended		ended	ended	ended	ended		ended	ended	ended
Revenue from contracts with customers	30/09/2023		30/09/2023	30/09/2022	30/09/2022	30/09/2023		30/09/2023	30/09/2022 30/09/2022
	₦'million		₦'million	₦'million	₦'million	₦'million		₦'million	₦'million	₦'million
Revenue from sales of cement & clinker	563,767		1,514,596	369,219	1,177,254	314,539		933,084	267,673	890,654
Revenue from sales of other products	2		5	-	2	-		-	-	-
Sales value	563,769		1,514,601	369,219	1,177,256	314,539		933,084	267,673	890,654

All group sales exclude intra-group sales.

4 Segment Information

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 Group operates. The Group has 2 reportable segments based on location of the principal operations as follows:
2. • Nigeria (includes Company and all subsidiaries operating in Nigeria. See Note 15.1)
   • Pan Africa (includes entities operating outside Nigeria. See Note 15.1)
3. Segment revenues and results
   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 sales revenue, EBITDA and profit from operating activities are used to measure performance as management believes that such information is the most relevant in evaluating results of certain segments relative to other entities that operate within these industries.
   The following is an analysis of the Group's revenue and results by reportable segment:

					3 month
					ended
Group				30/09/2023
					Central
	Nigeria		Pan Africa		Administra-		Eliminations	Total
					tive cost
	₦'million		₦'million		₦'million		₦'million	₦'million
Revenue	314,539		251,854		-		(2,624)	563,769
EBITDA*	149,060		76,368		(5,984)		63	219,507
Other Income	3,843		1,744		-		(9)	5,578
Profit from operating activities	132,089		54,402		(5,984)		465	180,972
Profit for the period	127,118		(54,698)		(5,984)		32,509	98,945

* represents earnings before interest, taxes, depreciation, amortisation & impairment

9