Unaudited Results for the six-months ended 30-06-2015

1. Dangote Sugar Refinery Plc
Investor Presentation
Unaudited Results for the six-months ended 30-06-2015
4 August 2015

2. Disclaimer
This presentation contains forward looking statements which reveal
Management’s recent views and estimates. The forward looking statements
contain certain risks and uncertainties that could cause actual results to vary
materially from those contained in the forward looking statements. Potential
risks and uncertainties include factors such as general economic conditions,
foreign exchange fluctuations, pricing pressures and regulatory developments.
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3. Overview of Operations
Apapa Refinery
• Located at the Apapa Wharf in Lagos with a dedicated jetty that
berths 40,000MT shipments of raw sugar from Brazil
• Produces quality sugar to customer specification making it the
refinery of choice for Nigeria’s leading industrial companies
• Refinery is powered efficiently with gas and/or LPFO (back up)
with 16MW of in house generating capacity
• Refining operations supported with strategically located
warehouses and 450 trucks for efficient distribution
Savannah Sugar
• Located on 32,000ha of land in Numan, Adamawa State, with
annual production capacity of 50,000MT factory
• Over 6,750 ha of land currently under cane, still undergoing
rehabilitation and expansion
• Expansion project to increase sugar production to 260,000 MT of
refined sugar p.a. on 25,000ha of cultivated land
• Land development & planting to continue over the next 2-3 years
• 700 full time staff and 4800 seasonal workers currently
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4. H1 2015 Highlights
Financial highlights
• Group revenue up 3% to ₦51.1 billion
– Higher sales volumes in Q2 with improved demand
– Average selling price increased by 18% to N6,741
– Retail business has grown 393% to N1.03billion
• Gross profit reduced 2% to ₦12.7billion, 24.8% margin achieved
– Higher energy costs with the use of more LPFO versus natural gas
– The Naira devaluation also affected operating costs
– Lower raw sugar costs, 15% less at US$310/t, savings eroded by exchange rate
• EBITDA ₦11.3billion, EBITDA margin 22.3%
• Profit before tax reduced by 4% to ₦9.8 billion
• Profit after tax decreased by 8% to N6.3billion
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5. H1 2015 Highlights
Operating highlights
• Demand increase in the second quarter compared to Q1 2015
– Group Sugar sales volume for the period 368,026 tonnes
– Sales in Q2 up 12% to 195,322 tonnes
• Refinery production at Apapa 361,083 tonnes (2014: 417,362)
– Production at Apapa constrained due to traffic grid lock in the Apapa area
– Despite increasing demand, trucks unavailable for delivery
– Escalated by Fuel Crisis
– Disruptions to supply of Natural Gas resulting in higher energy costs with switch to LPFO
• Savannah harvesting season commenced in January 2015
– Better cane quality following new area planted and improved cane husbandry
– 124,723 tonnes harvested (2014: 122,452)
– Sugar production, 6,610 tonnes (2014:6245)
– Harvesting to recommence in October/November 2015 after the rains
• Technical evaluation and design activities for new projects progressed (Details on slide 10)
• Graham Clark resigns as Group Managing Director, mutual decision with BOD
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6. H1 2015 Highlights
30-06-2015 30-06-2014 % change
Refined Sugar Produced (MT) 367,693 423,608 -13.2%
Refined Sugar Sold (MT) 368,026 420,862 -12.6%
Average C&F Raw Sugar/MT ($) 310 365 -15%
Average Price per 50kg bag (N) 6,741 5,685 18%
N’000,000 N’000,000
Revenue 51,120 49,601 3%
Gross Profit 5,464 7,187 -2%
Gross margin (%) 24.8% 26.1%
EBITDA 11,384 11,063 3%
EBITDA margin (%) 22.3% 22.3%
PBT 9,802 10,263 -4%
PAT 6,312 6,835 -8%
EPS 105 114 -8%
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7. H1 2015 Highlights
30-06-2015
N’000,000
30-06-2014
N’000,000
Non-Current Assets 56,047 42,892
Current Assets 44,386 45,919
Total Assets 100,433 88,812
Total Equity 52,925 46,839
Long-Term Debts - 312
Non-Current Liabilities 4,611 6,382
Total Liabilities 47,508 41,972
Total Equity and Liabilities 100,433 88,812
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8. Sugar for Nigeria
The Dangote Sugar Master Plan
 5 large sugar factories
 150,000 Ha of land under
cultivation
 1.5 million MT of refined
sugar from cane p.a.
 Production cost at around
16USc/lb
 130 million litres of ethanol
potential across all sites
 Animal feed and surplus
power generation capacity
to be sourced from cane
fiber
 Generate over 100,000 jobs
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10 year Target

9. Sugar for Nigeria
The Dangote Sugar Master Plan
Phase 1: Year 1 – Year 5
Site Type of Development Acreage (Ha) Refined Sugar (mt) State
Savannah Rehabilitate and Expand 25,000 260,000 Adamawa
Lau / Tau Greenfield 23,000 250,000 Taraba
Hadejia Greenfield 21,500 235,000 Jigawa
Total 69,500 745,000
Phase 2: Year 6 – Year 10
Site Type of Development Acreage (Ha) Refined Sugar (mt) State
Zaria Greenfield 60,000 660,000 Kebbi
Kpada Greenfield 36,000 396,000 Kwara /
Kogi
Total 96,000 1,056,000
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10. Sugar for Nigeria
Projects Update
Savannah Sugar
• Agricultural and factory rehabilitation ongoing
• A further 1,500ha redeveloped in Q1 2015
• Plant, equipment and field machinery deployed
• Redevelopment area to increase to 2,735ha in 2015
• Progress rapidly to produce target of 260,000 ha per
annum
Lau/Tau
• Commenced site evaluation and technical design work
• Soil and topographic surveys concluded
• Verification of irrigation water availability underway
• Environmental and social impact assessment in
progress
• Concluded development timetable
• Seed cane nursery established
Hadejia
• Commenced site evaluation and technical design
work
• Environmental and social impact assessment in
progress
• Concluded development timetable
Kebbi
• Site evaluation and technical analysis underway
• Site approval obtained
• Soil and topographical surveys concluded
• Finalising Land acquisition
Kwara
• Site evaluation and technical analysis underway
• Site approval obtained
• Soil and topographical surveys concluded
• Finalising Land acquisition
Kogi
• Site evaluation and technical analysis underway
• Site approval obtained
• Soil and topographical surveys concluded
• Finalising Land acquisition
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Phase 1 Phase 2

11. Sugar from Cane
Value Chain
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From 1 hectare of land, we will produce…
Timelines to production at full capacity
1
•Develop Seed Cane Area Begin factory design
2
•Plant out seed cane and develop additional seed cane area Begin factory construction
3
•Plant out largest area for harvesting Complete factory construction
4
•Crushing and final planting Commission factory
5
•Full area planted and crushed Produce at full capacity
Year Agriculture Industrial Complex
Sugar
Cane
1tonne
130KwH
Power
Mill Mud
0.03tonne
Bagasse
0.3tonne
Raw Sugar
Juice
0.7tonne
Clarified
Sugar Juice
0.5tonne
Molasses
0.05tonne
Sugar
Crystals
0.1tonne
11.25l
Ethanol
Animal
Feed
20% sugar in juice

12. Outlook
Outlook for 2015 has improved as market conditions turn more positive
• Activity following peaceful elections and transition to new Government May 29
• Continued pressure for the Naira devaluation, offset by lower raw sugar prices
• Raw sugar prices expected to remain volatile but remain around 2014 levels
• Increased harvest to refined sugar from Savannah Sugar
• Continue to implement Phase 1 of the “Sugar for Nigeria” project
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13. Investor Relations
For further information:
Ayeesha Aliyu
Investor Relations Lead
Dangote Industries Limited
+234 1 448 0815
Ayeesha.Aliyu@dangote.com
www.Dangote.com
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