DANGOTE CEMENT PLC - nse.com.ng

1 DANGOTE CEMENT PLCCONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS 31ST DECEMBER, 2017 DANGOTE CEMENT PLCCONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS 31ST DECEMBER, 2017 DANGOTE CEMENT PLCCONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS 31ST DECEMBER, 20172 FinancialsCONTENT PAGEC ertification pursuant to section 60 of Investments and Securities Act (ISA) 2007 3 Statement of Directors Responsibilities for the Preparation and Approval of the Financial Statements 4 Independent Joint Auditors Report to Shareholders of DANGOTE CEMENT Plc 5 Consolidated and Separate Statement of Profit and Loss 10 Consolidated and Separate Statement of Comprehensive Income 11 Consolidated and Separate Statement of Financial Position 12 Consolidated Statement of Changes in Equity 13 Separate Statement of Changes in Equity 14 Consolidated and Separate Statement of Cash Flows 15 Notes to the Consolidated & Separate Financial Statements 16 Five-year Financial Summary (Group) - Other National Disclosure 73 Five-year Financial Summary (Company)

2 - Other National Disclosure 74 Statement of Value Added - Other National Disclosure 753 DANGOTE CEMENT PLCCONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS 31ST DECEMBER, 2017 Certification pursuant to Section 60 of Investments and Securities Act (ISA) 2007We have reviewed the Consolidated and Separate Financial Statements of DANGOTE CEMENT Plc and its subsidiaries ( the Group ) for the year ended 31st December, 2017. 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 that would make the statement misleading in light of the circumstances under which such statements were made.

3 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 periods 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 period in which this report is being prepared; continuously evaluated the effectiveness of the Group s and Company s internal controls and reported to the Board s Audit, Compliance and Risk Management Committee on a quarterly basis; disclosed to the Audit Committee any fraud, whether or not material, that involved management or other employees who have significant role in the Company s internal controls.

4 Joseph Makoju, OFR Brian Egan Acting Chief Executive Officer/Group Managing Director Group CFO/Executive Director, Finance FRC/2018/COREN/00000017767 FRC/2015/MULTI/00000011227 4 DANGOTE CEMENT PLCCONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS 31ST DECEMBER, 2017 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, 2017, 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, 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.

5 Providing additional disclosures when compliance with the specific requirements in IFRS 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.

6 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 Consolidated and Separate Financial Statements of the Group and Company for the year ended 31st December, 2017 were approved by the Directors on 19th March, behalf of the Directors of the Company Chairman Acting Group Chief Executive Officer / Group Managing DirectorStatement of Directors Responsibilities for the Preparation and Approval of the Financial Statements for the year ended 31st December, 201710 DANGOTE CEMENT PLCCONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS 31ST DECEMBER.

7 2017 GroupCompanyNotesYear endedYear endedYear endedYear ended31-Dec-1731-Dec-1631-Dec-17 31-Dec-16 million million million million Revenue5 805,582 615,103 552,364 426,129 Production cost of sales7 (351,290) (323,816) (158,594) (178,129)Gross profit 454,292 291,287 393,770 248,000 Administrative expenses8 (45,380) (36,669) (22,571) (17,087)Selling and distribution expenses9 (109,917) (82,667) (68,683) (51,949)Other income11 5,213 10,542 3,386 4,766 Profit from operating activities 304,208 182,493 305,902 183,730 Finance income10 ** 35,926 43,817 71,286 205,642 Finance costs10 ** (52,711) (45,381) (35,035) (34,356)Share of profit from associate17. 3 2,167 - - - Profit before tax** 289,590 180,929 342,153 355,016 Income tax expense14 ** (85,342) (38,071) (87,523) (48,765)Profit for the year ** 204,248 142,858 254,630 306,251 Profit for the year attributable to.

8 Owners of the Company** 198,585 149,536 254,630 306,251 Non-Controlling Interests 5,663 (6,678) - - ** 204,248 142,858 254,630 306,251 Earnings per share, basic and diluted (Naira)13 ** ** represents prior year balances restated during the reporting year (see note 10 and note 14)The accompanying notes on pages 16 to 72 and other natioanal disclosures on pages 73 to 75 form an integral part of these consolidated and separate financial and Separate Statement of Profit or Loss for the year ended 31st December, 201711 DANGOTE CEMENT PLCCONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS 31ST DECEMBER, 2017 GroupCompanyNotes Year ended31-Dec-17 millionYear ended31-Dec-16 millionYear ended31-Dec-17 millionYear ended31-Dec-16 million Profit for the year ** 204,248 142,858 254,630 306,251 Other comprehensive income, net of income tax:Items that may be reclassified subsequently to profit or loss.

9 Exchange differences on translating net investments in foreign operations (3,572) 100,701 - -Other comprehensive (loss)/income for the year, net of income tax (tax-nil) (3,572) 100,701 - - Total comprehensive income for the year** 200,676 243,559 254,630 306,251 Total comprehensive income for the year attributable to:Owners of the Company** 195,062 250,866 254,630 306,251 Non-Controlling Interests 5,614 (7,307) - - ** 200,676 243,559 254,630 306,251 ** represents prior year balances restated during the reporting year (see note 10 and note 14)The accompanying notes on pages 16 to 72 and other natioanal disclosures on pages 73 to 75 form an integral part of these consolidated and separate financial statements.

10 Consolidated and Separate Statement of Comprehensive Income for the year ended 31st December, 201712 DANGOTE CEMENT PLCCONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS 31ST DECEMBER, 2017 GroupCompany31-Dec-1731-Dec-1601-Jan-163 1-Dec-1731-Dec-1601-Jan-16 Notes million million million million million millionAssetsNon-current assetsProperty, plant and equipment15 1,192,140 1,155,711 917,212 549,962 569,017 577,017 Intangible assets16 6,355 4,145 2,610 37 113 385 Investments in subsidiaries17. 2 - - - 161,957 78,673 26,075 Investment in associate17. 3 3,749 1,582 1,582 1,582 1,582 1,582 Finance lease receivables216,614- - 6,614--Deferred tax ** 30,625 51,306 17,575 6,674 30,584 15,964 Prepayments for property, plant and 16,101 13,196 9,094 1,600 - - Other receivables31** - - - 455,792 601,871 383,845 Total non-current assets** 1,255,584 1,225,940 948,073 1,184,218 1,281,840 1,004,868 Current assetsInventories19 94,594 82,903 53,118 62,259 55,850 38,369 Trade and other receivables20 30,155 26,279 11,544 12,340 11,857 4,252 Prepayments and other current 115,496 78,280 60,526 248,194 60,384 52,003 Finance lease receivables211,608- - 1.