Dangote Flour Mill annual report 2008

1DA N G OT E F L O U R M I L LS P L C
Notice of 3rd Annual General Meeting 2
Directors, Advisers and Other Corporate Information 3
Financial Highlights 4
Chairman’s Statement 5
Report of the Directors 7
Corporate Governance Report 11
Report of the Audit Committee 13
Report of the Independent Auditors 14
Statement of Significant Accounting Policies 15
Consolidated Profit and Loss Account 17
Consolidated Balance Sheet 18
Consolidated Statement of Cash Flows 19
Notes to the Consolidated Financial Statements 20
Consolidated Financial Summary 31
Consolidated Value Added Statement 32
Proxy Form
Contents

2 DA N G OT E F L O U R M I L LS P L C
NOTICE IS HEREBY GIVEN that the 3rd ANNUAL GENERAL MEETING OF DANGOTE FLOUR MILLS PLC will hold at The Civic
Centre, Ozumba Mbadiwe Road, Victoria Island, Lagos on the 9th of December, 2009 at 11 am prompt to transact the
following business:
ORDINARY BUSINESS
1. To receive the Audited Financial Statements for the year ended 31st December 2008 along with the reports of the
Directors and Audit Committee thereon for the year 2008.
2. To declare a Dividend.
3. To re-elect Directors.
4. To re-appoint the Auditors.
5. To authorize the Directors to fix the remuneration of the Auditors.
6. To appoint members of the Audit Committee.
SPECIAL BUSINESS
To fix the remuneration of the Directors.
PROXY
A member of the Company entitled to attend and vote at the above meeting is entitled to appoint a proxy to attend and
vote instead of him. A proxy need not be a member of the Company. A proxy for an organization may vote on a show of
hands and on a poll. For the appointment to be valid, a completed proxy form must be deposited at the registered office
of the Company or with the Registrar not later than 48 hours before the time fixed for the meeting.
DIVIDEND
The Board recommends for the approval of shareholders a payment of 20 kobo per ordinary share of 50 kobo each, out
of the profits declared in the financial year ended 31st December, 2008 and which will be subject to withholding tax at
the appropriate rate.
DIVIDEND WARRANTS
If approved, the dividend warrants will be posted on Wednesday 16th December, 2009 to shareholders, whose names
appear in the Company Register of Members at the close of business on Friday 20th November, 2009.
NOTES
1. CLOSURE OF REGISTER AND TRANSFER BOOKS
NOTICE IS HEREBY GIVEN that the Register of Members and Transfer Books of the Company will be closed from
Monday 23rd November to Monday 30th November, 2009 both days inclusive.
2. AUDIT COMMITTEE
In accordance with Section 359(5) of the Companies and Allied Matters Act 1990, a nomination (in writing) by any
member or shareholder for appointment to the Audit Committee should reach the Company Secretary at least 21
days before the Annual General Meeting. The Audit Committee comprises three shareholders and three Directors.
BY ORDER OF THE BOARD
A. A. SAMUEL
Ag Company Secretary
Dated this 3rd day of November, 2009
DANGOTE FLOUR MILLS PLC
No. 8, Rycroft Road,
Apapa, Lagos,
Nigeria.
Notice of 3rd Annual General Meeting

DIRECTORS
Alhaji Aliko Dangote — Chairman
Alhaji Sani Dangote — Director
Mr. Olakunle Alake — Director
Mr. Uzoma Nwankwo — Director
Alhaji Abdu Dantata — Director
Alhaji Abdullahi Mahmoud — Director
Mr. Asue Ighodalo — Director
Brigadier Gen. S. L. Teidi (Rtd) — Director
Mr. Rohit Chaudhry — Managing Director
Alhaji Shuaibu Idris — Executive Director
COMPANY SECRETARY/LEGAL ADVISER
A. A. Samuel, Esq. (Ag)
REGISTERED OFFICE
8, Rycroft Road,
Apapa, Lagos,
Nigeria.
REGISTRAR AND TRANSFER OFFICE
Oceanic Registrars Ltd.
154, Ikorodu Road, Onipanu,
Shomolu, Lagos.
AUDITORS
Akintola Williams Deloitte (Chartered Accountants)
235, Ikorodu Road, Ilupeju, Lagos.
BANKERS
Zenith Bank Plc
Afribank Plc
Equitorial Trust Bank Plc
First Bank of Nigeria Plc
Guaranty Trust Bank Plc
Oceanic Bank Plc
Diamond Bank Plc
Access Bank Plc
Intercontinental Bank Plc
First City Monument Bank Plc
United Bank for Africa Plc
Directors, Advisers and Other Corporate Information

Financial Highlights
The Group The Company
2008 2007 2008 2007
N=’000 N=’000 N=’000 N=’000
Turnover 47,927,300 42,153,272 30,109,610 31,303,845
Profit before taxation 3,167,625 675,703 1,758,137 375,651
Taxation (178,066) (114,144) (54,045) (85,316)
Profit after taxation 2,989,559 561,559 1,704,092 290,335
BALANCE SHEET
Share capital 2,500,000 2,500,000 2,500,000 2,500,000
Shareholders’ funds 24,352,609 21,985,707 23,157,859 21,907,492
Per 50 kobo share data (kobo)
Earnings per share (kobo) 60 11 34 6

Fellow Shareholders
It is with great delight that I welcome you all to the
third Annual General Meeting of our Company,
DANGOTE FLOUR MILLS PLC.
This meeting gives me the opportunity to brief fellow
shareholders on the performance of our Company and
the Group for the year ended 31st December 2008. It
is important to mention that the year had been one of
significant change and one which laid the foundations
for strong sustainable growth in the years ahead for
our Company given the fact that all our performance
indices for the year under review witnessed tremendous
improvements, compared with the previous years.
Before going into the details of our financial and
operating performance, I consider it most appropriate
to review the challenges we faced, how these
challenges were managed to make the Company stay
afloat and also to share with you all the strategic
direction of the Company and the Group as well.
Moreover, I will also like to touch on the business
environment both locally and globally and how they
impacted and are likely to impact on business
management and performance in the near future.
OPERATING ENVIRONMENT
The year 2008 was a difficult one for business both
globally and locally. The global financial meltdown
imposed challenges on the business environment
through reduced access to both local and foreign
finance, reduced purchasing power in the economy and
sustained high price of wheat, our major raw material.
Despite the harsh operating environment however, your
Company was able to operate profitably and retain its
market share by focusing on efficiency and improved
customer service.
2008 RESULTS AND DIVIDEND
Increases in international prices of our raw materials
necessitated us passing some of the cost to our
customers in the form of increases in selling prices.
The resultant customer resistance adversely affected
our volumes in 2008. The Company’s sales turnover
dipped slightly to N=30.1 billion in 2008 compared with
N=31.3 billion in 2007. Our subsidiaries contributed
N=16.6 billion to Group sales, resulting in a combined
sales of N=47.9 billion.
Although selling prices were increased, we were
constrained by the market from passing on the entire
increase and thus recouping the whole of the increased
input cost. Management rather increased its focus on
internal efficiency to cut down on other area of costs,
the effect of which made the Company profit before
taxation to increase from N=376 million in 2007 to N=1.8
billion in 2008. Group profit in 2008 also leaped from
N=676 million in 2007 to N=3.2 billion in 2008 implying
N=1.4 billion Group attributable profit from subsidiaries.
Resulting from this impressive result, the Directors are
recommending for your approval at this meeting, a
dividend payment at the rate of 20 kobo per share for
the year under review.
THE BOARD
After the last Annual General Meeting, the Board of
Directors in its determination to ensure that the
Company attains greater heights for the collective
happiness of all Shareholders, appointed Mr. Rohit
Chaudhry as the Managing Director of the Company.
Mr. Chaudhry is a man of tremendous management
experience and we are all happy that his competence
and ability have positively transformed the performance
of the Company as shown in the recently published 9
months unaudited results of the Company with an
appreciable increase in the turnover and an interim
dividend of 30 kobo per ordinary 50 kobo share already
declared payable to all Shareholders.
Fellow Shareholders, I enjoin you to wish Mr. Chaudhry
greater success in the arduous task of taking the
Company to the Promised Land.
Furthermore, three of your existing Directors will retire
by rotation and being eligible, they will offer themselves
for re-election in the course of this meeting.
OUR PEOPLE
We strongly believe that having an excellent ‘people
agenda’ at the heart of our business has a real and
tangible effect on business performance. We are
committed to growing, developing and retaining our
talents as we recognize that this is fundamental to our
long-term success and accordingly, we are increasing
emphasis and investing in this area in order to continue
to add value to them as important stakeholders in the
organization.
Chairman’s Statement

At this juncture, I express on your behalf, the
appreciation of the shareholders and the Board to all
our valued employees and our colleagues around the
business who are instrumental in delivering this year
laudable results through their drive and commitment.
FUTURE OUTLOOK
The Global Financial Meltdown is showing signs of
easing in 2009. Oil prices are inching up and the price
of wheat is stabilizing. This should translate to increased
purchasing power in the local economy and also
facilitate our ability to manage our material cost better.
We are using the opportunity provided by the improved
prospects to expand the business. Our Noodles factories
in Ikorodu, Kano and Calabar were all commissioned
in 2009.
Furthermore, expansion of our production capacities
in our factories in Apapa, Calabar and Ilorin is ongoing.
The plan is to expand the current 4,800 metric tons of
milling capacity per day to 7,300 metric tons.
GLOBAL ENVIRONMENT
I consider my speech incomplete without commenting
on global external environment and the impact on
Nigeria and our business. The current global financial
crisis which has reduced availability of offshore funds
to finance imports makes sourcing for imported raw
materials and spares not only challenging but more
expensive as cost of funds has been rising in the global
markets. In some cases, local banks are experiencing
outright cancellation of foreign currency lines hitherto
being enjoyed prior to the crisis. Aside the above
challenge, the Federal Government official data confirms
inflation rate at about 14%. The growth in inflation is
attributed to higher food prices. Food price pressure
has become a global phenomenon because some
commodities such as wheat, sugar and corn being used
in the production of ethanol have created strong
demand for bio-fuel. Bio-fuel is being used in most of
the advanced economies as a supplement to
transportation fuels. The implication of this again is that
the international prices of this category of commodities
would further be propelled because of possible greater
demand for them.
All these notwithstanding, I wish to assure my fellow
shareholders that our Company is financially well
insulated to cope with any challenges that may arise
from these crises. We shall proactively continue to put
required safeguards in place to deal with any
environmental constraints, be they local or global.
CORPORATE SOCIAL RESPONSIBILITY
We would continue to play our part in the society as a
responsible corporate citizen by not only complying with
required standards in products quality but also by
engaging with the larger society to continue to
contribute positively to the improved social welfare of
our operating environment.
CUSTOMERS
Customers/Dealers are considered indispensable
partners in this difficult but interesting journey of
progress. We shall continue to hold this wonderful
group of people in high esteem. On behalf of the Board,
Management and Staff of the Company, I hereby wish
to say a big thank you to all our numerous customers.
CONCLUSION
I thank you all for your attendance and contribution to
our Company. I thank you all also for listening.
I wish you journey mercy back to your various
destinations.
Thank you and God bless.
Alhaji (Dr.) Aliko Dangote, CON
Chairman
Chairman’s Statement cont’d

1. ACCOUNTS
The Directors are pleased to submit their report together with the audited accounts of the Company for the year
ended 31st December 2008.
2. RESULT
N=’000 N=’000
Turnover 47,927,300 30,109,610
Profit after taxation and minority interest 2,947,448 1,704,092
3. PRINCIPAL ACTIVITIES
The principal activities of the Company during the year are as follows:
(a) Manufacturing and selling of bread and biscuit flour
(b) Manufacturing and selling of Wheat Offal (Bran)
(c) Manufacturing of Semolina.
The principal activities of its subsidiaries are:
Pasta
Manufacture of Spaghetti, Macaroni etc.
Agrosacks
Manufacture of packaging materials.
4. LEGAL FORM
The Company started operating as a division of Dangote Industries Limited in 1999. It was incorporated as public
limited liability company on 1 January 2006, commenced operations on the same date and became quoted on the
Nigerian Stock Exchange on 4 February 2008. Its principal activity is the milling, processing and marketing of branded
flour.
5. DIRECTORS AND DIRECTORS’ INTEREST
The names of Directors who are currently in office are as follows:
(a) Alhaji Aliko Dangote
(b) Alhaji Sani Dangote
(c) Mr. Olakunle Alake
(d) Mr. Uzoma Nwankwo
(e) Alhaji Abdu Dantata
(f) Alhaji Abdullahi Mahmoud
(g) Mr. Asue Ighodalo
(h) Brigadier Gen. S. L. Teidi (Rtd)
(i) Mr. Rohit Chaudhry
(j) Alhaji Shuaibu Idris
(i) In accordance with the provisions of Section 259 of the Companies and Allied Matters Act 1990, one-third of
the Directors of the Company shall retire from office. The Directors to retire every year shall be those who have
been longest in office since their last election. In accordance with the provisions of this section, Mr. Asue
Ighodalo, Alhaji Abdu Dantata and Brigadier Gen. S. L. Teidi (Rtd) retire by rotation and being eligible, offer
themselves for re-election.
(ii) No Director has a service contract not determinable within five years.
Report of the Directors
for the Year Ended 31 December, 2008

(iii) The Directors’ interest in the issued share capital of the Company as recorded in the register of members and/
or as notified by them for the purpose of Section 275 of the Companies and Allied Matters Act, C20 Laws of the
Federation of Nigeria 2004 are as follows:
Number of 50k Shares held
as at 31 December 2008
(a) Alhaji Aliko Dangote 32,283,333
(b) Alhaji Sani Dangote —
(c) Mr. Olakunle Alake 377,500
(d) Mr. Uzoma Nwankwo 271,500
(e) Alhaji Abdu Dantata —
(f) Alhaji Abdullahi Mahmoud 43,750
(g) Mr. Asue Ighodalo —
(h) Brigadier Gen. S. L. Teidi (Rtd) —
(i) Mr. Rohit Chaudhry —
(j) Alhaji Shuaibu Idris 100,000
6. DIRECTORS’ RESPONSIBILITIES
The Directors are responsible for the preparation of financial statements which give true and fair view of the state of
affairs of the Company at the end of each financial year and of the profit or loss for that period and comply with the
Companies and Allied Matters Act, C20 Laws of the Federation of Nigeria 2004. In doing so they ensure that:
(a) Proper accounting records are maintained;
(b) Applicable accounting standards are followed;
(c) Suitable accounting policies are adopted and consistently applied;
(d) Judgments and estimates made are reasonable and prudent;
(e) The going concern basis is used, unless it is inappropriate to presume that the Company will continue in
business; and
(f) Internal control procedures are instituted which as far as is reasonably possible, safeguard the assets and
prevent and detect fraud and other irregularities.
7. CORPORATE GOVERNANCE
(a) The Company is committed to the best practice and procedures in corporate governance. Its business is conducted
in a fair, honest and transparent manner which conforms to high ethical standards.
(b) Members of the Board of Directors hold quarterly meetings to decide on policy matters and direct the affairs of
the Company, review its performance, its operations, finances and formulate growth strategy. Attendance at
Directors’ meetings was impressive. In line with provisions of section 258(2) of the Companies and Allied
Matters Act, C20 Laws of the Federation of Nigeria 2004, the records of Directors’ attendance at board meetings
is available for inspection at the Annual General Meeting.
(c) The remuneration of Executive Directors is fixed and reviewed by a Committee of Non-executive Directors.
(d) The Board of Directors consists of 10 members; a Chairman, Managing Director, Sales Director and 7 Non-
Executive Directors. Appointment to the Board is made by Shareholders at the Annual General Meeting, upon
the recommendation of the Board of Directors.
(e) The oversight functions of the Board are performed through its Committees, namely:
(i) The Finance and Investment Committee
(ii) The Nomination and Remuneration Committee.
8. SUBSTANTIAL INTEREST IN SHARES
The Registrar has advised that according to the register of members on 31st December 2008, only Dangote Industries
Limited with 3,667,691,470 ordinary shares of 50k each held more than 5% of the issued share capital of the
Company.
Report of the Directors cont’d

9. FIXED ASSETS
Movements in fixed assets during the year are shown in Note 6 to the Accounts. In the opinion of the Directors, the
market value of the Company’s properties is not less than the value shown in the accounts.
10. DONATIONS AND CHARITABLE GIFTS
The holding Company Dangote Industries Limited currently makes donation on behalf of the Group Companies.
In addition during the year the Company made a donation of N=100,000 to National Youth Service Corps (NYSC).
11. POST BALANCE SHEET EVENTS
There were no significant developments since the balance sheet date which could have had a material effect on the
state of affairs of the Company as 31st December, 2008 and the profit for the year ended on that date which have
been adequately recognized.
12. COMPANY DISTRIBUTORS
The Company’s products are distributed through many distributors across the whole country.
13. SUPPLIERS
The Company obtains its materials at arm’s length basis from overseas and local suppliers. Amongst its main overseas
and local suppliers are Cargill International SA, Ameropa SA, Vitachem Nigeria Limited and Biochemical Derivatives
Nigeria Limited.
14. ANALYSIS OF SHAREHOLDINGS
Analysis of shareholdings as at 31st December, 2008
Range No. of Holders Per cent Units Per cent
1 — 50,000 384,755 99.58 789,558,334 15.79
50,001 — 100,000 801 0.21 61,800,253 1.24
100,001 — 1,000,000,000 778 0.20 480,949,943 9.62
1,000,000,001 and above 1 0.01 3,667,691,470 73.35
386,335 100.00 5,000,000,000 100.00
15. HUMAN RESOURCES
1. Employment and Employees
The Company has reviewed its employment policy in line with the needs of the business. Careful recruiting is
now the focus to ensure that potential high performers are attracted and retained.
2. Work Environment
The Company continuously strives to improve its operations to ensure a safe working environment. The
Company maintains a high standard of hygiene in all its premises through sanitation practices and the regular
fumigation exercises have been further strengthened by the installation of pest and rodent control gadgets.
Safety and environment workshops have been organized for all senior employees with a broad focus on good
house-keeping to ensure good and safe working environment. Nutritionally balanced meals are provided in
staff canteens at fully subsidized prices.
3. Employee Development
Local and overseas training and development programmes have been organized to meet the need of the
Company’s modernization, automation strategy implementation. The Company continues to place premium
on its human capital development arising from the fact that this would ensure improved efficiency of the
business and maintain strategic advantage over competition.

16. AUDIT COMMITTEE
Pursuant to Section 359(3) of the Companies and Allied Matters Act Cap C20 Laws of the Federation of Nigeria
2004, the Company has put in place an Audit Committee comprising of 3 Shareholders and 3 Directors as follows:
1. Mr. Alex Adio — Shareholder/Chairman
2. Alhaji Kasimu Ibrahim — Shareholder
3. Chief M. O. Mbonu — Shareholder
4. Alhaji Abdullahi Mahmoud — Director
5. Mr. Asue Ighodalo — Director
6. Mr. Olakunle Alake — Director
The functions of the Audit Committee are as laid down in Section 357(2) of the Companies and Allied Matters Act
Cap C20 Laws of the Federation of Nigeria 2004.
17. AUDITORS
Messrs Akintola Williams Deloitte (Chartered Accountants) have indicated their willingness to continue in office as
the Company’s Auditors in accordance with Section 357(2) of the Companies and Allied Matters Act Cap C20 Laws
of the Federation of Nigeria, 2004. A resolution will be proposed authorizing the Directors to fix their remuneration.
BY ORDER OF THE BOARD
A. A. SAMUEL, Esq.
Ag Company Secretary
Dangote Flour Mills Plc
8, Rycroft Road,
Apapa, Lagos,
Nigeria.
Dated this 3rd day of November, 2009

DANGOTE FLOUR MILLS PLC is committed to the best practice and procedures in corporate governance. Overseen by the
Board of Directors, corporate governance practices are constantly under review, in line with the dynamics of the business
environment.
The Corporate Governance policies adopted by the Board of Directors are designed to ensure that the Company’s business
is conducted in a fair, honest and transparent manner which conforms to high ethical standards.
The Board delegates the day-to-day running of the Company’s affairs to the Managing Director/Chief Executive. The
Managing Director/Chief Executive is supported in this task by an Executive Management Committee. The Board consists
of 10 members, the Chairman, Managing Director, 1 Executive Director and 7 Non-Executive Directors.
FREQUENCY OF MEETINGS
The Board of Directors holds at least four (4) meetings a year, to consider important corporate events and actions such as
approval of Corporate Strategy, Annual Corporate Plan, review of internal risk management and control systems, review
performance and direct the affairs of the Company, its operations, finances and formulate growth strategies. It may
however, convene a meeting if the need arises. During the year under review, the Board had a total of four (4) meetings.
Attendance at Directors meetings is impressive. In line with provisions of Section 258(2) of the Companies and Allied
Matters Act, Cap C20 Laws of the Federation of Nigeria 2004, the record of Directors attendance at Board meetings is
available for inspection at the Annual General Meeting.
RESPONSIBILITIES OF THE BOARD OF DIRECTORS
It is the responsibility of the Board of Dangote Flour Mills Plc to:
• Ensure that the Company’s operations are conducted in a fair and transparent manner that conforms to high ethical
standards;
• Ensure integrity of the Company’s financial and internal control policies;
• Ensure the accuracy, adequacy and timely rendition of the statutory returns and financial reporting to the regulatory
authorities (NSE, CAC, SEC) and Shareholders;
• Ensure value creation for the Shareholders, employees and other stakeholders;
• Review and approve corporate policies, strategy, annual budget and business plan;
• Monitor implementation of policies and the strategic direction of the Company;
• Set performance objectives, monitor implementation and corporate performance;
• Review and approve all major and capital expenditure of the Company;
• Ensure that the statutory rights of all Shareholders are protected at all times.
The Board carries out some of the above responsibilities through the Board Committees whose terms of reference set out
clearly their roles, responsibilities, scope of authority and procedure for reporting to the Board.
Each Committee is presided over by a Non-Executive Director to ensure strict compliance with the principles of good
Corporate Governance practice; while the Audit Committee has a representative of the Shareholders as its Chairman.
In compliance with the practices of good Corporate Governance, the Chairman of the Board is not a member of any of the
Committees.
Corporate Governance Report

THE FINANCE AND INVESTMENT COMMITTEE
1. Alhaji Mahmoud Abdullahi — Chairman
2. Brigadier Gen. S. L. Teidi (Rtd) — Member
3. Mr. Olakunle Alake — Member
THE NOMINATION AND REMUNERATION COMMITTEE
1. Mr. Asue Ighodalo — Chairman
2. Mr. Uzoma Nwankwo — Member
3. Alhaji Abdu Dantata — Member
THE AUDIT COMMITTEE
The Audit Committee is made up of six (6) members, three representatives of the Shareholders and three members of
the Board of Directors. Members of the Audit Committee are elected at the General Meetings. The Committee in compliance
with the requirement of Corporate Governance practice is chaired by a Shareholder. The Committee met two (2) times
during the year under review. Members of the Committee are:
1. Mr. Alex Adio — Shareholder/Chairman
2. Chief M. O. Mbonu — Shareholder
3. Alhaji Kasimu Ibrahim — Shareholder
4. Mr. Asue Ighodalo — Director
5. Mr. Olakunle Alake — Director
6. Alhaji Mahmoud Abdullahi — Director
In addition to its responsibility to review the scope, independence and objectivity of the Audit, the Audit Committee
carries out all such matters as are reserved to the Audit Committee by the Companies and Allied Matters Act, Cap C20
Laws of the Federation of Nigeria, 2004.
• Review adequacy and effectiveness of Dangote Flour Mills Plc internal control policies prior to endorsement by the
Board.
• Direct and supervise investigations on matters within the scope, such as evaluations of the effectiveness of Dangote
Flour Mills Plc internal controls, cases of employee, business partner and client misconduct or conflict of interest.
Corporate Governance Report cont’d

TO THE MEMBERS OF DANGOTE FLOUR MILLS PLC
In accordance with the provisions of Section 359(6) of the Companies and Allied Matters Act , 1990, we have examined
the Auditors’ report for the year ended 31st December, 2008. We have obtained all the information and explanations we
required.
In our opinion, the Auditors’ report is consistent with our review of the scope and planning of the audit. We are also
satisfied that the accounting policies of the Company are in accordance with the legal requirements and agreed ethical
practices. Having reviewed the Auditors’ findings and recommendations on Management matters, we are satisfied with
Management’s response therein.
Mr. Alex Adio
Chairman, Audit Committee
Dated this 5th day of November, 2009
Members of the Committee
Chief M. O. Mbonu
Mr. Asue Ighodalo
Alhaji Abdullahi Mahmoud
Mr. Olakunle Alake
Alhaji Kasimu Ibrahim
Report of the Audit Committee

TO THE MEMBERS OF DANGOTE FLOUR MILLS PLC
We have audited the accompanying consolidated financial statements of Dangote Flour Mills Plc, as at 31 December
2008, set out on pages 15 to 32 which have been prepared on the basis of the significant accounting policies on pages
15 and 16 and other explanatory notes on pages 20 to 30.
Directors’ Responsibility for the Financial Statements
The Directors are responsible for the preparation and fair presentation of these financial statements in accordance with
the Companies and Allied Matters Act, CAP C20, LFN 2004. This responsibility includes: designing, implementing and
maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making
accounting estimates that are reasonable in the circumstances.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by Directors, as well as evaluating the overall
presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion.
Opinion
In our opinion, the Group and the Company have kept proper accounting records and the financial statements are in
agreement with the records in all material respects and give in the prescribed manner, information required by the
Companies and Allied Matters Act, CAP C20, LFN 2004. The consolidated financial statements give a true and fair view of
the financial position of Dangote Flour Mills Plc as at 31 December 2008, and of its financial performance and its cash
flows for the year then ended in accordance with the Statements of Accounting Standards issued by the Nigerian Accounting
Standards Board.
Chartered Accountants
Lagos, Nigeria
29th October, 2009
Akintola Williams Deloitte
235 Ikorodu Road, Ilupeju
P.O. Box 965, Marina
Lagos,
Nigeria
Tel: +234 1 2717800
Fax: +234 1 2717801
www.deloitte.com/ng
Report of the Independent Auditors

The following are the significant accounting policies which have been adopted.
1. Basis of accounting
The consolidated financial statements are prepared on the historical cost basis. Adjustment has not been made to
reflect the impact of specific price changes or changes in the general level of prices on the financial statements.
2. Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries which
are Dangote Pasta Limited and Dangote Agro Sacks Limited whose financial statements are equally made up to
31 December. All inter-company transactions and balances are eliminated in full on consolidation.
Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity
therein.
3. Turnover
Turnover represents the net value of goods and services sold to third parties during the year less discounts.
4. Fixed assets
Fixed assets are stated at cost less accumulated depreciation.
5. Depreciation
Depreciation is calculated to write off the cost of fixed assets on a straight line basis over their expected useful lives.
The principal annual rates used for this purpose are:
%
Leasehold land and buildings — 2
Plant and machinery — 6
Motor vehicles — 25
Tools and equipment — 20
Furniture and fittings — 20
Computer equipment and softwares — 33
6. Stocks and work-in-progress
Stocks and work-in-progress are stated at the lower of cost based on FIFO and net realisable value while goods in
transit are stated at the invoice price. Cost of stocks includes purchase cost, conversion cost (materials, labour and
overhead) and other costs incurred to bring inventory to its present location and condition.
7. Foreign currencies
Transactions in foreign currencies are recorded in Naira at the rates of exchange ruling at the time they arise. Assets
and liabilities existing in foreign currencies are converted to Naira at the rates of exchange ruling at the balance
sheet date. Gains or losses arising therefrom are included in the profit and loss account.
8. Debtors
Debtors are stated after deduction of specific provisions for debts considered doubtful of recovery.
9. Taxation
(i) Companies income tax
Income tax and education tax are provided by applying the current statutory rate on the taxable profit and
adjusted profit respectively.
(ii) Deferred taxation
Deferred taxation is provided using the liability method at the current rate of income tax on all timing differences
between the treatment of certain items for accounting purposes and their treatment for taxation in accordance
with SAS 19.
Statement of Significant Accounting Policies
2
–
3
1
–
3

10. Employees retirement benefit scheme
The Company makes provision for retirement benefits in accordance with the Pension Reform Act of 2004.
The contribution of the employer is 7.5% while that of the employee is 7.5% of relevant emoluments.
The Company also operates a gratuity scheme for its permanent Nigerian staff, the benefits under which are related
to employees’ length of service and remuneration. The provision for liability in respect thereof based on actuarial
valuation is made in full in the financial statements.
11. Investments
Investments are stated at cost after specific provision for diminution in value.
12. Provisions
Provision is recognized when the Company has a present obligation whether legal or constructive, as a result of a
past event for which it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation in accordance with the
Statement of Accounting Standards (SAS) 23.
13. Segment reporting
The Company’s business segments are presented by products that are subject to similar risks and returns.
14. Earnings per share
The Group presents basic earnings per share (EPS) for its ordinary shares. Basic (EPS) is calculated by dividing the
profit or loss attributable to ordinary shareholders by the weighted average number of shares outstanding during
the year.
15. Dividend
Proposed dividend for the year is recognised as a liability only when declared and approved by shareholders at the
Annual General Meeting.
Statement of Significant Accounting Policies cont’d

2008 2007 2008 2007
Note N=’000 N=’000 N=’000 N=’000
Turnover 2 47,927,300 42,153,272 30,109,610 31,303,845
Cost of sales (38,288,106) (37,417,176) (24,078,077) (28,011,379)
Gross profit 9,639,194 4,736,096 6,031,533 3,292,466
Distribution and administrative expenses (5,182,564) (3,579,936) (3,271,788) (2,412,845)
Operating profit 4,456,630 1,156,160 2,759,745 879,621
Other income 3 1,109,614 174,421 955,745 120,269
Profit before interest payable 5,566,244 1,330,581 3,715,490 999,890
Interest payable and similar charges (2,398,619) (654,878) (1,957,353) (624,239)
Profit before taxation 4 3,167,625 675,703 1,758,137 375,651
Taxation 5 (178,066) (114,144) (54,045) (85,316)
Profit after taxation 2,989,559 561,559 1,704,092 290,335
Attributable to:
Equity holders — parent 2,947,448 524,710 1,704,092 290,335
Non-controlling interest 42,111 36,849 — —
2,989,559 561,559 1,704,092 290,335
Earnings per share — Basic (kobo) 60 11 34 6
The accounting policies on pages 15 and 16 and other explanatory notes on pages 20 to 30 form part of these financial
statements.
Consolidated Profit and Loss Account

Consolidated Balance Sheet
as at 31 December, 2008
2008 2007 2008 2007
Note N=’000 N=’000 N=’000 N=’000
FIXED ASSETS 6 32,449,283 27,070,733 15,732,534 13,375,453
INVESTMENTS 7 601,900 286,922 8,065,537 7,750,559
CURRENT ASSETS
Stocks 8 9,910,531 11,427,343 5,397,449 8,386,006
Trade debtors 9 7,410,110 5,132,810 6,118,790 4,583,207
Other debtors and prepayments 10 8,466,004 2,976,372 7,758,905 2,185,785
Due from subsidiaries 25 — — 12,116,069 10,967,799
Due from related companies 25 8,263,988 9,545,549 2,370,221 4,419,375
Bank and cash balances 1,648,773 1,680,060 371,632 776,551
35,699,406 30,762,134 34,133,066 31,318,723
CREDITORS: Amounts falling due
within one year
Bank loans and overdrafts 11 20,595,334 20,231,117 15,214,170 18,004,827
Trade creditors 4,387,431 2,754,271 3,173,701 1,539,797
Other creditors and accruals 12 14,171,804 7,841,147 11,982,203 6,267,950
Taxation 5 423,248 245,182 139,361 85,316
Due to related companies 25 3,960,932 4,326,524 3,887,582 4,326,524
43,538,749 35,398,241 34,397,016 30,224,414
NET CURRENT LIABILITIES (7,839,343) (4,636,107) (263,950) 1,094,309
TOTAL ASSETS LESS CURRENT
LIABILITIES 25,211,841 22,721,548 23,534,221 22,220,321
CREDITORS: Amounts falling due
after more than one year
Term loan 14 — (187,012) — —
PROVISION FOR LIABILITIES AND
CHARGES
Gratuity 15 (582,037) (389,402) (376,362) (312,829)
NET ASSETS 24,629,803 22,145,134 23,157,859 21,907,492
CAPITAL AND RESERVES
Share capital 16 2,500,000 2,500,000 2,500,000 2,500,000
Share premium 17 11,806,537 11,806,537 11,806,537 11,806,537
Reserves 18 10,046,072 7,679,170 8,851,322 7,600,955
Shareholders’ fund — attributable to
equity holders 24,352,609 21,985,707 23,157,859 21,907,492
Non-controlling interest 19 277,194 159,427 — —
24,629,803 22,145,134 23,157,859 21,907,492
The financial statements on pages 17 to 32 were approved by the Board of Directors on 29th of October, 2009 and signed
on its behalf by:
Alhaji Aliko Dangote
Olakunle Alake
The accounting policies on pages 15 and 16 and other explanatory notes on pages 20 to 30 form part of these financial
statements.
}Directors

Consolidated Statement of Cash Flows
2008 2007 2008 2007
Note N=’000 N=’000 N=’000 N=’000
Cash flows from operating activities
Cash receipts from customers 45,993,302 38,463,811 28,917,530 32,410,139
Cash payments to suppliers and employees (36,404,326) (51,041,658) (20,985,026) (45,226,557)
Net cash provided by operating activities 20 9,588,976 (12,577,847) 7,932,504 (12,816,418)
Cash flows from investing activities
Proceeds from disposal of fixed assets 138 — 138 —
Purchase of fixed assets 6 (7,181,130) (5,643,822) (3,289,943) (2,154,794)
Deposit for investments 7 (314,978) — (314,978) —
Net cash provided by investing activities (7,495,970) (5,643,822) (3,604,783) (2,154,794)
Cash flows from financing activities
Interest income 3 97,121 15,713 15,370 11,675
Term loan:
— Obtained 244,000 2,505,801 — —
— Repaid (1,094,490) (1,048,683) — —
Interest paid (2,398,619) (654,878) (1,957,353) (624,239)
Net cash provided by financing activities (3,151,988) 817,953 (1,941,983) (612,564)
Net (decrease)/increase in cash and
cash equivalents (1,058,982) (17,403,716) 2,385,738 (15,583,776)
Cash and cash equivalents at 1 January (17,403,716) — (17,228,276) (1,644,500)
Cash and cash equivalents at 31 December 21 (18,462,698) (17,403,716) (14,842,538) (17,228,276)

1. THE COMPANY
1.1 Legal form
The Company started operating as a division of Dangote Industries Limited in 1999. It was incorporated as
public limited liability company on 1 January 2006, commenced operations on the same date and was quoted
on the Nigerian Stock Exchange on 4 February 2008.
In 2007, the Company acquired controlling interests in Dangote Pasta Limited and Dangote Agrosacks Limited.
Particulars of these subsidiaries are:
Subsidiaries Percentage held Principal Activities
Dangote Pasta Limited 99 Manufacture of Spaghetti, Macaroni
Dangote Agrosacks Limited 99 Manufacture of packaging materials. It holds 75%
equity in Obajana Agrosacks Limited
1.2 Principal activities
Its principal activity is the milling, processing and marketing of branded flour.
2. ANALYSIS OF TURNOVER AND COST OF SALES
Analysis by: Turnover Cost of sales Gross profit
Activity N=’000 N=’000 N=’000
The Group
Flour 26,269,299 21,746,622 4,522,677
Bran 1,996,365 419,821 1,576,544
Danvita and Semolina 2,401,532 1,911,634 489,898
Sacks 8,422,720 6,774,998 1,667,722
Spaghetti 8,456,424 7,435,031 1,021,393
Macaroni 360,960 — 360,960
47,927,300 38,288,106 9,639,194
The Company
Flour 26,269,299 21,746,622 4,522,677
Bran 1,438,779 419,821 1,018,958
Danvita and Semolina 2,401,532 1,911,634 489,898
30,109,610 24,078,077 6,031,533
2008 2007 2008 2007
N=’000 N=’000 N=’000 N=’000
3. OTHER INCOME
Interest income 97,121 15,713 15,370 11,675
Sale of scraps 100,689 15,426 100,689 15,426
Provision no longer required 839,686 77,585 839,686 77,585
Export grants — 15,583 — 15,583
Exchange gain — 16,398 — —
Sundry income 71,118 33,716 — —
1,109,614 174,421 955,745 120,269
Notes to the Consolidated Financial Statements

2008 2007 2008 2007
N=’000 N=’000 N=’000 N=’000
4. PROFIT BEFORE TAXATION
This is arrived at after charging/(crediting):
Directors’ emoluments:
— Fees 15,900 — 2,100 —
— Salaries and allowances 186,984 60,822 20,450 36,316
Audit fee 45,500 36,420 27,500 22,500
Depreciation 1,801,832 1,489,666 932,014 904,849
Exchange gain — (16,398) — (16,398)
Management fee (Note 26) 176,348 155,763 — —
5. TAXATION
Profit and loss account
Tax based on the profit for the year
Income tax 67,407 — — —
Education tax 110,659 114,144 54,045 85,316
178,066 114,144 54,045 85,316
178,066 114,144 54,045 85,316
Balance sheet
As per profit and loss account 178,066 114,144 54,045 85,316
At the beginning of the year 245,182 — 85,316 —
Transfer from subsidiaries — 131,038 — —
Payments during the year — — — —
At the end of the year 423,248 245,182 139,361 85,316
The charges for taxation in these financial statements were based on the provisions of the Companies Income
Taxation Act, CAP C21, LFN 2004 as amended and the Education Tax Act, CAP E 4, LFN 2004.
Notes to the Consolidated Financial Statements cont’d

6. FIXED ASSETS
(a) The Group
Computer
Leasehold equipment Furniture Assets
land and Plant and Tools and and and Motor under
buildings machinery equipment softwares fittings vehicles construction Total
N=’000 N=’000 N=’000 N=’000 N=’000 N=’000 N=’000 N=’000
Cost
At 1 January 2,481,470 18,387,650 561,363 54,555 146,066 241,875 9,466,092 31,339,071
Additions 24,493 1,379,171 48,690 17,490 22,728 81,598 5,606,960 7,181,130
Disposals — — — (204) — — — (204)
Adjustment/transfer (97) — (712) — — — 185 (624)
Reclassification 225,716 6,346,482 — — — — (6,572,198) —
At 31 December 2,731,582 26,113,303 609,341 71,841 168,794 323,472 8,501,039 38,519,373
Depreciation
At 1 January 127,695 3,730,906 222,426 29,507 65,618 92,186 — 4,268,338
Charge for the year 50,608 1,521,794 114,340 17,290 27,456 70,344 — 1,801,832
Disposals — — — (11) — — — (11)
Adjustment/transfer (1) — (68) — — — — (69)
At 31 December 178,302 5,252,700 336,698 46,786 93,074 162,530 — 6,070,090
Net book value
At 31 December 2008 2,553,280 20,860,603 272,643 25,055 75,720 160,942 8,501,039 32,449,283
At 31 December 2007 2,353,775 14,656,744 338,937 25,048 80,448 149,689 9,466,092 27,070,733
(b) The Company
Computer
Leasehold equipment Furniture Assets
land and Plant and Tools and and and Motor under
buildings machinery equipment softwares fittings vehicles construction Total
N=’000 N=’000 N=’000 N=’000 N=’000 N=’000 N=’000 N=’000
Cost
At 1 January 1,843,454 10,529,572 388,800 36,210 72,177 111,428 2,203,636 15,185,277
Additions 1,542 11,900 27,437 11,260 5,806 1,955 3,230,043 3,289,943
Disposals — — — (204) — — — (204)
Adjustment/transfer (97) — (712) — — — 185 (624)
Reclassification — — — — — — — —
At 31 December 1,844,899 10,541,472 415,525 47,266 77,983 113,383 5,433,864 18,474,392
Depreciation
At 1 January 72,468 1,523,189 132,312 15,953 24,084 41,818 — 1,809,824
Charge for the year 36,856 761,627 76,963 13,421 15,000 28,147 — 932,014
Disposals — — — (11) — — — (11)
Adjustment/transfer (1) — (68) — — — — (69)
At 31 December 109,323 2,284,816 209,207 29,363 39,084 69,965 — 2,741,758
Net book value
At 31 December 2008 1,735,576 8,256,656 206,318 17,903 38,899 43,418 5,433,864 15,732,634
At 31 December 2007 1,770,986 9,006,383 256,488 20,257 48,093 69,610 2,203,636 13,375,453
Assets under construction comprise of capacity expansion projects in flour production mills Apapa, Ilorin and Calabar.

2008 2007 2008 2007
N=’000 N=’000 N=’000 N=’000
7. INVESTMENTS (UNQUOTED)
Dangote Pasta Limited
49,500,000 ordinary shares of N=1 each in
Dangote Pasta Limited — — 2,507,637 2,507,637
Dangote Agrosacks Limited
84,150,000 ordinary shares of N=1 each in
Dangote Agrosacks Limited — — 4,956,000 4,956,000
— — 7,463,637 7,463,637
Deposits for investments
At 1 January 286,922 — 286,922 —
Additions 314,978 286,922 314,978 286,922
At 31 December 601,900 286,922 601,900 286,922
At 31 December, 2008 601,900 286,922 8,065,537 7,750,559
Deposit for investments relates to expenditure incurred on noodles project, a new subsidiary company
under construction. The shares are yet to be allotted as at 31 December, 2008.
2008 2007 2008 2007
N=’000 N=’000 N=’000 N=’000
8. STOCKS
Raw materials and work-in-progress 5,747,680 7,319,939 3,766,420 5,781,707
Finished goods 2,321,381 2,824,121 501,985 1,532,318
Engineering spares and other stocks 821,709 1,198,611 109,283 987,309
Goods-in-transit 1,019,761 84,672 1,019,761 84,672
9,910,531 11,427,343 5,397,449 8,386,006
9. TRADE DEBTORS
Trade debtors 9,616,719 7,051,481 8,223,263 6,246,803
Provision for bad and doubtful debts (2,206,609) (1,918,671) (2,104,473) (1,663,596)
7,410,110 5,132,810 6,118,790 4,583,207
10. OTHER DEBTORS AND PREPAYMENTS
Other debtors 7,799,981 2,285,220 7,704,937 2,093,974
Deposit for stocks 600,334 577,846 — —
Prepayments 65,689 113,306 53,968 91,811
8,466,004 2,976,372 7,758,905 2,185,785

2008 2007 2008 2007
N=’000 N=’000 N=’000 N=’000
11. BANK LOANS AND OVERDRAFTS
Bank overdrafts 9,536,663 14,519,654 7,801,362 13,440,705
Short-term loans 10,574,808 4,564,122 7,412,808 4,564,122
Term loan (Note 14) 483,863 1,147,341 — —
20,595,334 20,231,117 15,214,170 18,004,827
12. OTHER CREDITORS AND ACCRUALS
Customers’ deposits 1,069,176 1,284,641 680,712 823,858
Rebate received in advance — 1,603,927 — 1,603,927
Accruals 1,552,827 1,974,672 1,119,969 1,787,920
Other creditors 11,549,801 2,977,907 10,181,522 2,052,245
14,171,804 7,841,147 11,982,203 6,267,950
13. DEFERRED TAXATION
Deferred tax computation in the current year resulted in deferred tax assets of N=873,247,757 and N=2,969,881,066
for the Company and Group respectively. These have not been adjusted in these financial statements.
2008 2007 2008 2007
N=’000 N=’000 N=’000 N=’000
14. TERM LOAN
At 31 January 1,334,353 — — —
Transfer from subsidiaries — 2,505,801 — —
Repayment during the year (1,094,490) (1,048,683) — —
Exchange equalisation — (122,765) — —
Loan obtained during the year 244,000 — — —
At 31 December 483,863 1,334,353 — —
Due within one year (Note 11) (483,863) (1,147,341) — —
Due after more than one year — 187,012 — —
The loan amount of $19.8 million which was obtained in prior year was granted the Company by Commerzbank
Germany for the Flour Mills and Pasta line expansion projects. The loan amount is repayable in 3 years with $9.87
million payable in 2008 and $1.61 million payable in 2009. The interest rate is 9.029%.
2008 2007 2008 2007
N=’000 N=’000 N=’000 N=’000
15. GRATUITY
At 1 January 389,402 266,657 312,829 266,657
Transfer from subsidiaries — 65,367 — —
Provision for the year 267,415 65,719 114,419 48,936
Payments during the year (74,780) (8,341) (50,886) (2,764)
At 31 December 582,037 389,402 376,362 312,829

2008 2007 2008 2007
N=’000 N=’000 N=’000 N=’000
16. SHARE CAPITAL
Authorised
6,000,000,000 ordinary shares of 50k each 3,000,000 3,000,000 3,000,000 3,000,000
Issued and fully paid
5,000,000,000 ordinary shares of 50k each 2,500,000 2,500,000 2,500,000 2,500,000
17. SHARE PREMIUM
At 1 January 11,806,537 11,931,537 11,806,537 11,931,537
Applied for bonus issue — (125,000) — (125,000)
At 31 December 11,806,537 11,806,537 11,806,537 11,806,537
Exchange
Conso- equali- 2008 2007
Revenue lidation sation Capital Total Total
N=’000 N=’000 N=’000 N=’000 N=’000 N=’000
18. RESERVES
The Group
At 1 January 1,246,693 (278,925) 122,765 6,588,637 7,679,170 721,983
On acquisition of subsidiaries (Note 7) — — — — — 7,463,637
Nominal value of shares issued in
exchange (Note 16) — — — — — (875,000)
Exchange equalisation (Note 14) — — — — — 122,765
On consolidation — — — (76,168) (76,168) (278,925)
Prior year adjustment (504,378) — — — (504,378) —
Transferred from profit and loss account 2,947,448 — — — 2,947,448 524,710
At 31 December 3,689,763 (278,925) 122,765 6,512,469 10,046,072 7,679,170
The Company
At 1 January 7,600,955 721,983
Dangote Pasta and Dangote Agrosacks Limited transferred (Note 7) — 7,463,637
Nominal value of shares issued in exchange — (875,000)
Prior year adjustment (453,725) —
Transferred from profit and loss account 1,704,092 290,335
At 31 December 8,851,322 7,600,955
Prior year adjustment relates to 2006 sales debited twice to a customer account which was corrected in 2008.
The Directors proposed that a dividend of 20 kobo per ordinary share will be paid to the shareholders. The total
dividend payable of N=1 billion is subject to approval by shareholders at the Annual General Meeting and deductions
of withholding tax at the appropriate rate; consequently, it has not been included as a liability in these financial
statements. Dividend to shareholders are now accounted for on the date of declaration as they do not meet the
criteria for present obligation in Statement of Accounting Standard (SAS) 23 on Accounting for Provisions, Contingent
Liabilities and Contingent Assets.

The Group
2008 2007
N=’000 N=’000
19. NON-CONTROLLING INTEREST
Profit and loss account
At 1 January
On acquisition of Obajana Agrosacks 29,552 34,482
Share of profit in Dangote Agrosacks 4,759 7,239
Share of profit/(loss) in Dangote Pasta 7,800 (4,872)
At 31 December 42,111 36,849
Balance sheet
At 1 January 159,427 —
On acquisition of Obajana Agrosacks 29,552 84,482
Share of profit/(loss):
Dangote Agrosacks Limited 4,759 7,239
Dangote Pasta Limited 7,800 (4,872)
Share capital and reserves — Dangote Agrosacks 51,092 43,853
Share capital and reserves — Dangote Pasta 25,076 28,725
Prior year item (512) —
At 31 December 277,194 159,427

2008 2007 2008 2007
N=’000 N=’000 N=’000 N=’000
20. RECONCILIATION OF PROFIT AFTER TAX TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
Profit after taxation and extraordinary items 2,989,559 561,559 1,704,092 290,335
Adjustments to reconcile net income to
net cash provided by operating activities
Depreciation 1,801,832 1,489,666 932,014 904,849
Interest income (97,121) (15,713) (15,370) (11,675)
Interest expenses 2,398,619 654,878 1,957,353 624,239
Prior year adjustment (504,378) — — —
Fixed assets adjustment/transfer 555 1,415,917 555 952,805
Net fixed assets from subsidiaries — (11,254,181) — —
Adjustment for opening net fixed assets — (13,365,235) — —
Adjustment for opening revenue reserve — 721,983 — —
Adjustment for minority interest (42,111) (36,849) — —
Adjustment for goodwill written off on consolidation — (278,925) — —
Loss on disposal of fixed assets 55 — 55 —
Changes in assets and liabilities
Decrease/(increase) in stocks 1,516,812 (11,427,343) 2,988,557 (4,096,775)
(Increase)/decrease in trade debtors (2,277,300) (5,132,810) (1,989,308) 454,778
Increase in other debtors and prepayments (5,489,632) (2,976,372) (5,573,120) (1,056,698)
Increase in due from subsidiaries — — (1,148,270) (10,967,799)
Decrease/(increase) in due from related companies 1,281,561 (9,545,549) 2,049,154 4,625,295
(Decrease)/increase in trade creditors 1,633,160 2,754,271 1,633,904 (4,287,207)
Increase in other creditors and accruals 6,330,657 7,841,147 5,714,252 1,157,596
(Decrease)/increase in due to related companies (365,592) 4,326,524 (438,942) (1,549,496)
Increase in taxation payable 178,066 245,182 54,045 85,316
Increase in gratuity provision 192,635 389,402 63,533 58,019
Increase in share capital — 2,500,000 — —
Increase in share premium — 11,806,537 — —
(Decrease)/increase in capital reserve (76,168) 6,588,637 — —
Increase in minority interest 117,767 159,427 — —
Total adjustments 6,599,417 (13,139,406) 6,228,412 (13,106,753)
Net cash provided by operating activities 9,588,976 (12,577,847) 7,932,504 (12,816,418)
21. CASH AND CASH EQUIVALENTS
Cash and bank balances 1,648,773 1,680,060 371,632 776,551
Short-term loans (10,574,808) (4,564,122) (7,412,808) (4,564,122)
Bank overdrafts (9,536,663) (14,519,654) (7,801,362) (13,440,705)
(18,462,698) (17,403,716) (14,842,538) (17,228,276)

2008 2007 2008 2007
N=’000 N=’000 N=’000 N=’000
22. INFORMATION REGARDING DIRECTORS
AND EMPLOYEES
.1 Directors
Directors’ emolument comprises:
— Fees 2,100 — 2,100 —
— Salaries and allowances 58,756 60,822 20,450 36,316
60,856 60,822 22,550 36,316
The number of Directors excluding the
Chairman with gross emoluments within
the bands stated below were:
N=’000 N=’000 Number Number Number Number
0 — 4,000 1 — — —
10,000 — 15,000 1 2 — 1
15,000 and above 1 1 1 1
.2 Employees
Average number of persons employed
during the year:
Management 157 133 106 90
Senior staff 500 846 364 387
Junior staff 1,657 2,622 375 461
2,314 3,601 845 938
N=’000 N=’000 N=’000 N=’000
Aggregate payroll costs:
Wages, salaries, allowances and
other benefits 1,565,636 1,500,768 604,458 872,416
Provision for gratuities 235,354 65,719 82,358 48,936
Pension cost 49,045 54,961 12,438 45,723
1,850,035 1,621,448 699,254 967,075
The number of employees with gross
emoluments within the bands stated
below are:
N=’000 N=’000 Number Number Number Number
0 — 200 — 598 — —
200 — 400 2,444 1,880 324 371
401 — 600 369 532 220 232
601 — 800 178 187 50 51
801 — 1,000 137 167 100 108
1,001 — 2,000 190 163 102 120
2,000 and above 94 74 53 56
3,412 3,601 849 938
23. CONTINGENT LIABILITIES
.1 There was no material contingent liability in respect of pending litigation against the Company.
.2 The Directors are of the opinion that all known commitments and liabilities which are relevant in assessing the
state of affairs of the Company have been taken into consideration in the preparation of these financial
statements.

2008 2007 2008 2007
N=’000 N=’000 N=’000 N=’000
24. CAPITAL COMMITMENTS
Capital commitments 423,155 132,677 423,155 132,677
The capital commitments were made for capacity expansion projects in three of the four production mills (Apapa,
Ilorin and Calabar).
25. RELATED PARTY TRANSACTIONS
During the year the Company had dealings with subsidiaries and related companies. The balances emanating from
the transactions which have been disclosed in the balance sheet as due from subsidiaries and related companies as
well as due to related companies are as analysed below:
2008 2007 2008 2007
N=’000 N=’000 N=’000 N=’000
Due from subsidiaries
Dangote Pasta Limited — — 12,806,780 10,720,216
Dangote Agrosacks Nigeria Limited — — (690,711) 247,583
— — 12,116,069 10,967,799
Due from related companies
Dangote Industries Limited 8,259,269 8,660,184 2,368,721 4,416,875
Dangote Sugar Refinery Plc — 634,638 — —
Dangote Fisheries Nigeria Limited 1,500 1,500 1,500 1,500
Bluestar Shipping Company — 1,000 — 1,000
Dangote Flour Mills Plc 3,219 — — —
Others — 248,187 — —
8,263,988 9,545,549 2,370,221 4,419,375
Due to related companies
Dangote Transport Nigeria Limited 2,492,769 2,524,501 2,492,769 2,524,501
Dangote Sugar Refinery Plc 1,389,885 1,802,023 1,389,885 1,802,023
Bluestar Shipping Company 3,500 — 3,500 —
Green View Development Nigeria Ltd. 1,428 — 1,428 —
Dangote Flour Mills Plc — — — —
Dangote Industries Limited 73,350 — — —
3,960,932 4,326,524 3,887,582 4,326,524
.1 Dangote Pasta Limited
Dangote Pasta is a subsidiary company to Dangote Flour Mills Plc. During the year, the supply of wheat and
pasta flour to Dangote Pasta amounting to N=6.67 billion.
.2 Dangote Agrosacks Nigeria Limited
Dangote Agrosacks Nigeria Limited is a subsidiary of Dangote Flour Mills. During the year, the Company had
significant transactions amounting to N=491,431,071 for the supply of bags for packaging of Flour, Bran, Danvita,
etc.

.3 Dangote Industries Limited
Dangote Industries Limited (DIL) is the parent company. DIL undertake payments for expansion projects,
recommend external consultants, negotiate bank facilities and purchases of raw materials on behalf of the
Company. The transactions during the year amounted to N=1.46 billion.
.4 Dangote Transport Nigeria Limited
Dangote Transport is a related company to Dangote Flour Mills Plc. The Company had transactions amounting
to N=1,025,303,454 with respect to haulage of finished products to customers as well as raw wheat to other
plants.
.5 Dangote Sugar Plc
Dangote Sugar Plc is a related company to Dangote Flour Mills Plc. Dangote Sugar supplies power to Dangote
Flour Mills Plc. There is no trading relationship between the two companies.
.6 Dangote Salt Nigeria Limited
Dangote Salt is a related company to Dangote Flour Mills Plc. There was no material transactions between the
two companies during the year.
26. MANAGEMENT FEE
Dangote Pasta Limited and Dangote Agrosacks Limited entered into management and technical service agreement
dated 2 January 2006 with Dangote Industries Limited (DIL). The agreement is for an initial period of five years with
an option to renew for a further period of five years subject to termination by either party in accordance with the
terms of the agreement. As consideration for the services provided, a sum equivalent to 2% of the net revenue from
the Company’s sales for each month is payable to Dangote Industries Limited. Management fees for the financial
year ended 31 December 2008 amounted to N=176.3 million (2007 — N=155.8 million).
27. ACQUISITION OF SUBSIDIARIES
During the year, the Board of Directors of Dangote Flour Mills Plc at the Board Meeting held on 19 November, 2008
approved the investment of N=90 million to subscribe to 90% of the shares of Dangote Noodles Limited. Dangote
Noodles has not commenced operations as at 31 December, 2008 and no accounts has been prepared as at that
date for consolidation in the Group financial statements.
28. COMPARATIVE FIGURES
Certain balances in prior year have been reclassified where necessary for more meaningful comparison.

Consolidated Financial Summary
2008 2007 2006 2008 2007 2006
N=’000 N=’000 N=’000 N=’000 N=’000 N=’000
BALANCE SHEET
Assets
Fixed assets 32,449,283 27,070,733 — 15,732,634 13,375,453 13,365,235
Investments 601,900 286,922 — 8,065,537 7,750,559 —
Net current (liabilities)/assets (7,839,343) (4,636,107) — (263,950) 1,094,309 1,043,095
25,211,841 22,721,548 — 23,534,221 22,220,321 14,408,330
Long-term liabilities — (187,012) — — — —
Provision for liabilities and charges (582,037) (389,402) — (376,362) (312,829) (254,810)
24,629,803 22,145,134 — 23,157,859 21,907,492 14,153,520
CAPITAL AND RESERVES
Share capital 2,500,000 2,500,000 — 2,500,000 2,500,000 1,500,000
Share premium 11,806,537 11,806,537 — 11,806,537 11,806,537 11,931,537
Revenue reserve 10,046,072 7,679,170 — 8,851,322 7,600,955 721,983
Minority interest 277,194 159,427 — — — —
24,629,803 22,145,134 — 23,157,859 21,907,492 14,153,520
PROFIT AND LOSS ACCOUNT
Turnover 47,927,300 42,153,272 — 30,109,610 31,303,845 35,672,696
Profit before taxation 3,167,625 675,703 — 1,758,137 375,651 721,983
Taxation (178,066) (114,144) — (54,045) (85,316) —
Minority interest (42,111) (36,849) — — — —
Retained profit transferred to
general reserve 2,947,448 524,710 — 1,704,092 290,335 721,983
Per share data —
50k ordinary share
Earnings:
— Basic (kobo) 60 11 — 34 6 24
— Diluted (kobo) — — — — — 14
Net assets (Naira) 5 4 — 5 4 5
Note:
1. Earnings per share are based on profit after taxation and the number of issued and fully paid ordinary shares at the
end of each financial year.
2. Net assets per share are based on net assets and the issued and fully paid ordinary shares as at the end of each
financial year.

2008 2007 2008 2007
N=’000 % N=’000 % N=’000 % N=’000 %
Turnover 47,927,300 42,153,272 30,109,610 31,303,845
Other income 1,109,614 174,421 955,745 120,269
49,036,914 42,327,693 31,065,354 31,424,114
Less: Bought-in-materials
and services
— Imported (23,623,137) (33,518,001) (23,623,137) (25,650,487)
— Local (16,195,666) (4,404,846) (2,095,460) (2,901,813)
Value added 9,218,111 100 4,404,846 100 5,346,758 100 2,871,814 100
Applied as follows:
To pay employees
Salaries, wages and
other benefits 1,850,035 20 1,621,448 37 699,254 13 967,075 34
To pay providers of capital
Interest on loans and bank
overdrafts 2,398,619 26 654,878 15 1,957,353 37 624,239 22
To pay government
Taxation 178,066 2 114,144 2 54,045 1 85,316 3
To provide for enhancement
of assets and growth
Depreciation 1,801,832 20 1,489,666 34 932,014 17 904,849 31
Profit and loss account 2,989,559 32 524,710 12 1,704,092 32 290,335 10
9,218,111 100 4,404,846 100 5,346,758 100 2,871,814 100
“Value added” represents the additional wealth the Company has been able to create by its own and employees’ efforts.
This statement shows the allocation of that wealth between employees, capital providers, government and that retained
for future creation of more wealth.
Consolidated Value Added Statement

Notes

3RD ANNUAL GENERAL MEETING TO BE HELD AT
11.00 A.M. ON WEDNESDAY, 9TH DECEMBER, 2009 AT
THE CIVIC CENTRE, OZUMBA MBADIWE ROAD,
VICTORIA ISLAND, LAGOS.
I/We*........................................................................................................
of ...............................................................................................................
hereby appoint......................................................................................
...................................................................................................................
of ...............................................................................................................
or failing him, the Chairman of the meeting, as my/our proxy
to act and vote for me/us and on my/our behalf at the Third
Annual General Meeting of the Company to be held at 11.00
a.m. on Wednesday, 9th December, 2009 and at any
adjournment thereof.
Dated this ................ day of .......................................... 200.....
Signature .................................................................................................
NOTES
1. Please sign this proxy card and post it to reach the
registered office of the Company not less than 48 hours
before the time for holding the meeting.
2. If executed by a corporation, the proxy card should be
sealed with the common seal.
3. This proxy card will be used both by show of hands and
in the event of a poll being directed or demanded.
4. In the case of joint holders the signature of any one of
them will suffice, but the names of all joint holders should
be shown.
Admission Card
3RD ANNUAL GENERAL MEETING TO BE HELD AT 11.00 A.M.
ON WEDNESDAY, 9TH DECEMBER, 2009 AT THE CIVIC CENTRE, OZUMBA MBADIWE ROAD,
VICTORIA ISLAND, LAGOS.
Name of Shareholder* ........................................................................................................................................................................................
IF YOU ARE UNABLE TO ATTEND THE MEETING
A member (shareholder) who is unable to attend Annual General Meeting is allowed by law to vote by proxy. A proxy
need not be a member of the Company. The above proxy card has been prepared to enable you exercise your right to
vote if you cannot personally attend.
No. of Shares Name and Address of Shareholders
IMPORTANT
Please insert your name in BLOCK CAPITALS on both proxy and admission card where marked*.
✂
RESOLUTION FOR AGAINST
1. To receive the Audited
Financial Statements for the
year ended 31st December
2008 and the Directors’,
Auditors’ and Audit Committee’s
Reports thereon
2. To declare a dividend
3. To re-elect Directors
4. To re-appoint the Auditors
5. To authorise the Directors
to fix the remuneration
of the Auditors
6. To appoint members of
the Audit Committee
7. To fix the remuneration of
the Directors
Please indicate with an “X” in the appropriate square
how you wish your votes to be cast on resolutions set
out above. Unless otherwise instructed, the proxy will
vote or abstain from voting at his/her own discretion.
Before posting the above form, please tear off this part and retain it for admission to the meeting.
Proxy Form
FLOUR
Dangote Flour Mills Plc
RC 501757

The Registrars
Oceanic Registrars
154, Ikorodu Road, Onipanu,
Shomolu, Lagos.

Dangote Flour Mill annual report 2008

Dangote Flour Mill annual report 2008

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