Dangote Flour Mill annual report 2011

1DA N G OT E F L O U R M I L LS P L C
Notice of 6th Annual General Meeting 2
Corporate Information 3
Financial Highlights 4
Chairman’s Statement 5
Board of Directors 7
Report of the Directors 8
Corporate Governance Report 12
Report of the Audit Committee 15
Report of the Independent Auditors 16
Statement of Management Responsibilities 17
Statement of Significant Accounting Policies 18
Consolidated Profit and Loss Account 20
Consolidated Balance Sheet 21
Consolidated Statement of Cash Flows 22
Notes to the Consolidated Financial Statements 23
Consolidated Value Added Statement 36
Consolidated/Company Five-Year Financial Summary 37
Share Capital History/Unclaimed Dividend 38
Mandate for e-Dividend Payment Form 39
Proxy Form 41
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 6th ANNUAL GENERAL MEETING OF DANGOTE FLOUR MILLS PLC will hold at KWARA
HOTEL, ILORIN, KWARA STATE on Thursday, 5th July, 2012 at 12.00 noon prompt to transact the following business:
ORDINARY BUSINESS
1. To receive the Audited Financial Statements for the year ended 31st December 2011 along with the reports of the
Directors and Audit Committee thereon for the year 2011.
2. To declare a Dividend.
3. To elect/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.
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 dividend of 10 kobo per ordinary share of 50 kobo
each, out of the profits declared in the financial year ended 31st December, 2011 and which will be subject to withholding
tax at the appropriate rate.
DIVIDEND WARRANTS
If approved, the dividend warrants will be posted on Thursday, 19th July, 2012 to shareholders, whose names appear in
the Company Register of Members at the close of business on Wednesday, 20th June, 2012.
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
Thursday, 21st June, 2012 to Friday, 22nd June, 2012 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
AISHA LADI ISA (MRS)
Company Secretary/Legal Adviser
Dated this 28th day of May, 2012
DANGOTE FLOUR MILLS PLC
Terminal ‘E’
Greenview Development Building
Apapa Wharf
Lagos
Nigeria.
Notice of 6th Annual General Meeting

DIRECTORS
Alhaji Aliko Dangote, GCON — Chairman
Alhaji Sani Dangote — Director
Mr. Olakunle Alake — Director
Mr. Uzoma Nwankwo — Director
Alhaji Abdu Dantata — Director
Alhaji Abdullahi S. Mahmoud — Director
Mr. Asue Ighodalo — Director
Brigadier-General S. L. Teidi (Rtd), OFR — Director
Mr. Ekanem Etim — Ag. Group Managing Director (Appointed 16th December, 2011)
Mr. Suleiman Olarinde — Executive Director, Finance (Appointed 16th December, 2011)
COMPANY SECRETARY/LEGAL ADVISER
AISHA LADI ISA (Mrs)
REGISTERED OFFICE
Terminal ‘E’
Greenview Development Building
Apapa Wharf
Lagos
Nigeria.
REGISTRAR AND TRANSFER OFFICE
Oceanic Registrars
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
GTBank Plc
Oceanic Bank Plc
Diamond Bank Plc
Access Bank Plc
Intercontinental Bank Plc
First City Monument Bank Plc
United Bank for Africa Plc
Ecobank Nigeria Plc
Corporate Information

Financial Highlights
The Group The Company
2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
PROFIT AND LOSS
Turnover 66,281,326 67,600,954 38,679,844 42,695,383
Profit before taxation and exceptional item 1,880,974 4,911,885 2,533,459 5,481,077
Exceptional item (1,484,265) — (1,484,265) —
Profit before tax and after exceptional item 396,709 4,911,885 1,049,194 5,481,077
Taxation 281,005 (2,189,310) (261,710) (1,727,829)
Profit after taxation 677,714 2,722,575 787,484 3,753,248
BALANCE SHEET
Share capital 2,500,000 2,500,000 2,500,000 2,500,000
Shareholders’ funds 26,440,128 26,943,846 26,032,991 26,489,154
Per 50 kobo share data (kobo)
Earnings per share 14 54 16 75
Dividend per share 10 20 10 20
The Directors propose a dividend of 10 kobo per ordinary share of 50 kobo each subject to approval of the shareholders
at the Annual General Meeting for the year ended 31 December, 2011.

istinguished Shareholders, Members of
the Board of Directors, Representatives
of the SEC, NSE, CAC and other regulators
here present, Invited Guests, Gentlemen of the
Press, Ladies and Gentlemen.
I have the pleasure to welcome you to the 6th
Annual General Meeting of our great Company,
Dangote Flour Mills Plc.
Please permit me to present to you an overview
of our operations and other events that shaped
the year under review. The year 2011 witnessed
many challenges, ranging from high exchange
rates, infrastructural challenges, high cost of wheat
to security issues in the country amongst others.
These factors affected our performance and had
gone ahead to shape our current business year.
The challenges faced in 2011 helped us in taking
adequate steps that will guarantee an improved
and better performance in 2012 and also in the
future.
Chairman’s Statement
COMPANY PERFORMANCE
Dangote Flour Mills Plc recorded a turnover of
N=66.28 billion in 2011. Profit before tax and
exceptional items was N=1.880 billion. The
exceptional item, represents a N=1.484 billion
provision for secured doubtful trade debts. For
prudence sake, a 50% provision was made for
trade debts secured by insurance bonds provided
by NEM Insurance Plc and Niger Insurance Plc.
Recovery efforts are on-going to ensure that what
is due is substantially recovered.
The profit after tax and after exceptional item was
N=677 million.
DIVIDENDS
Fellow shareholders, the Board has recommended
for your approval, the payment of a dividend of
10 kobo for every 50 kobo ordinary share held by
members in the Company. The recommended
dividend is in line with the dividend policy and if
approved, will be paid net of withholding tax to
all shareholders in the register of members as at
Wednesday, 20th June 2012.
THE BOARD
Since the last Annual General Meeting, there have
been a few changes on the Board composition.
An Acting Group Managing Director, in the person
of Mr Ekanem Etim was appointed to run the
affairs of the Company. He joined the Company
from Dangote Cement in December 2011 as
Deputy Managing Director and he replaces Mr
Narendra Kumar Somani who resigned in March
2012. His appointment will be ratified in the course
of this meeting.
Also joining the Board as Finance Director is Mr.
Suleiman Olarinde who served previously in the
same capacity at Dangote Sugar Refinery Plc. His
appointment will also be ratified by Shareholders
at this meeting.
The Directors retiring by rotation at this meeting
are Alhaji Abdu Dantata, Mr. Asue Ighodalo and
Mr. Uzoma Nwankwo, and being eligible offer
themselves for re-election.
D
Alhaji Aliko Dangote, GCON
Chairman

OUR STAFF
Our staff remain our strength; they have continued
to maintain productive work ethic, which has
helped your Company maintain its key position
in the industry with satisfactory service delivery to
customers. We will continue to place high priority
on their training and development, seek and retain
the best talents in our continued pursuit of
operational and service excellence.
THE FUTURE
In response to the challenges faced by your
Company in 2011 and the resultant low
performance, the Board has put in place the
following initiatives to ensure a quick turnaround:
The Management team was strengthened. In
addition to Board level appointments noted
earlier, more senior level staff were appointed to
further improve the team.
The Company also embarked on cost
management and debt collection drives to tackle
the issues of high costs and doubtful debts which
were prevalent in previous years. A major initiative
in the cost management effort is the replacement
of diesel, which used to power Pasta and
Agrosacks plants, with natural gas.
Advertisement and promotional efforts have been
stepped up in 2012 to further support the brands,
boost revenue base and regain market share. This
is supported by the provision of additional trucks
to boost haulage of both raw materials and
finished products.
Part of the expansion project in Apapa became
operational in March 2012. Of the six lines 250
MT each capacity designed to produce a higher
percentage of semolina than existing mills, 2 lines
of 250MT each have been commissioned. It is
expected that this will improve the Company’s
profitability profile and cash flow.
There is an on-going discussion between the
majority shareholder of your Company and Tiger
Brands Limited, a South African based
manufacturing and retail group which has
acquired interests in the foods sector in Nigeria
and other African countries. No final commitment
has been agreed by both parties and therefore
no formal notification has been submitted to the
Company. In the event that both parties decide
to proceed with a transaction, due process will
be followed in line with regulatory requirements.
CUSTOMERS
Our key partners in the business, our customers,
had performed wonderfully well in the year under
review. They have not only demonstrated their
strong commitment and belief in the organization
but have also proven that doing business with us
has been a very rewarding venture. Their significant
contributions to the business through partnership
and patronage have ever remained our source of
strength. 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.
APPRECIATION
On behalf of the Board of Directors, I would like
to express our heartfelt appreciation to the
Management and Staff of the Group for their
continued dedication, support and commitment
during the year.
I would also like to thank you, my fellow
shareholders, as well as our customers, suppliers,
bankers, government agencies and regulatory
authorities, for the unrelenting support and
confidence in Dangote Flour Mills Plc.
Thank you and God bless.
Alhaji Aliko Dangote, GCON
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, 2011.
2. RESULT
N=’000 N=’000
Turnover 66,281,326 38,679,844
Profit after taxation 677,714 787,484
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 and selling of Semolina.
The principal activities of its subsidiaries are:
Dangote Pasta Limited
Manufacturing and selling of Spaghetti, Macaroni etc.
Dangote Agrosacks Limited
Manufacturing and selling of packaging materials.
Dangote Noodles Limited
Manufacturing and selling of Noodles.
4. LEGAL FORM
The Company started operating as a division of Dangote Industries Limited in 1999. It was incorporated as a public
limited liability company on 1 January 2006 and commenced operations on the same date. It however 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, GCON
(b) Alhaji Sani Dangote
(c) Mr. Olakunle Alake
(d) Mr. Uzoma Nwankwo
(e) Alhaji Abdu Dantata
(f) Alhaji Abdullahi S. Mahmoud
(g) Mr. Asue Ighodalo
(h) Brigadier-Gen. S. L. Teidi (rtd), OFR
(i) Mr. Narendra Kumar Somani — Resigned 5th March, 2012
(j) Mr. Ekanem Etim — Appointed 16th December, 2011
(k) Mr. Suleiman Olarinde — Appointed 16th December, 2011
(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, Alhaji Abdu
Dantata, Mr. Asue Ighodalo and Mr. Uzoma Nwankwo 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, 2011

(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:
Directors’ Shareholding as at 31 December, 2011
Number of 50k Shares held
as at 31 December, 2011
(a) Alhaji Aliko Dangote, GCON 38,728,948
(b) Alhaji Sani Dangote —
(c) Mr. Olakunle Alake 2,377,500
(d) Mr. Uzoma Nwankwo —
(e) Alhaji Abdu Dantata —
(f) Alhaji Abdullahi S. Mahmoud 43,750
(g) Mr. Asue Ighodalo —
(h) Brigadier-Gen. S. L. Teidi (rtd), OFR —
(i) Mr. Ekanem Etim —
(j) Mr. Suleiman Olarinde —
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 which disclose with reasonable accuracy the financial position of
the Company and which ensure that the financial statements comply with the requirements of the Companies
and Allied Matters Act of Nigeria;
(b) Applicable accounting standards are followed;
(c) Proper accounting records are maintained;
(d) Suitable accounting policies are adopted and consistently applied;
(e) Judgments and estimates made are reasonable and prudent;
(f) It is appropriate for the financial statements to be prepared on a going concern basis; unless it is inappropriate
to presume that the Company will continue in business;
(g) Adequate 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
Dangote Flour Mills Plc is committed to manage the Company with best practice and policies which align management
of the Company with the interests of all stakeholders. This, in the long run results in beneficial relationship and
long-term growth.
Dangote Flour Mills Plc imbibes good Corporate Governance as a key factor in achieving its business success while
remaining within the ambit of the law as a good corporate entity.
The Board in line with its responsibilities to shareholders works to achieve the best practice of good Corporate
Governance. The business of the Company is conducted in a fair, honest and transparent manner which conforms
to high ethical standards.
8. SUBSTANTIAL INTEREST IN SHARES
The Registrar has advised that according to the register of members on 31st December 2011, only Dangote Industries
Limited with 3,667,716,667 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 7 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
Dangote Flour Mills Plc identifies with the aspirations of our operational environment by supporting charitable and
worthy causes. However, during the year under review, no donation was made to any political party or religious
organisation.
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 at 31st December, 2011 and the profit for the year ended on that date which have
not been adequately recognized.
12. COMPANY DISTRIBUTORS
The Company’s products are distributed through many distributors across the whole country and some other parts
of Africa.
13. SUPPLIERS
The Company procures 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
Range analysis of shareholdings as at 31st December, 2011:
No. of Holders Holders No. of Units Units
Range Holders % Cumulative Units % Cumulative
1 – 1,000 147,337 42.79 147,337 130,808,162 2.62 130,808,162
1,001 – 5,000 174,569 50.70 321,906 318,758,395 6.38 449,566,557
5,001 – 10,000 13,301 3.86 335,207 89,042,693 1.78 538,609,250
10,001 – 50,000 7,502 2.18 342,709 143,622,383 2.87 682,231,633
50,001 – 100,000 765 0.22 343,474 57,374,027 1.15 739,605,660
100,001 – 500,000 665 0.19 344,139 141,644,059 2.83 881,249,719
500,001 – 1,000,000 86 0.03 344,225 64,342,760 1.29 945,592,479
1,000,001 – 2,000,000 48 0.02 344,273 65,541,843 1.31 1,011,134,322
2,000,001 – 5,000,000 39 0.01 344,312 125,356,766 2.51 1,136,491,088
5,000,001 – 10,000,000 7 0.00 344,319 48,446,026 0.97 1,184,937,114
10,000,001 – 50,000,000 5 0.00 344,324 87,196,219 1.74 1,272,133,333
50,000,001 – 100,000,000 1 0.00 344,325 60,150,000 1.20 1,332,283,333
2,000,000,001 – 5,000,000,000 1 0.00 344,326 3,667,716,667 73.35 5,000,000,000
Grand Total 344,326 100.00 5,000,000,000 100.00
15. HUMAN RESOURCES
1. Employment, Training and Employees
The Company recruits without discrimination in considering applications for employment through selection of
the most suitable for various positions after interview. The Company employs professionals and people with
technical expertise and continues to invest in developing such skills and maintain set standards. The Company
also has in-house training facilities in addition to external training for employees. This gives every employee
equal opportunity for career development.

2. Employee Welfare and Safety at Work
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. This is further strengthened by the installation of pest and rodent control gadgets. Safety
and environment workshops organized for all 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 subsidized
prices. The use of safety shoes, goggles and apron etc. by employees is enforced. The Company carries out
safety and fire awareness drills for all employees on regular basis. As a guide in the performance of all functions,
a written Safety Policy for ensuring safe working practices is in place. Safety Officers and Security Supervisors
are at hand to ensure the use of and implementation of the systems and procedures for safety by all employees.
There is a clinic within each factory to provide adequate medical care in the event of accidents or any emergency
in the work place. Also, the Company allows employees and their immediate families to attend good hospitals
at its expense. Fire prevention and fire-fighting equipment are installed in strategic positions within the premises
of each factory.
3. Employee Development
Local and overseas training and development programmes have been organized to meet the needs 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. On the other hand, the employee is fully equipped
to provide quality service which at the end will be beneficial to the organization and thus contribute to its
growth.
16. AUDIT COMMITTEE
In compliance with the provisions of Section 359(3) of the Companies and Allied Matters Act, Cap C20 Laws of the
Federation of Nigeria 2004, the Company has an Audit Committee comprising three (3) Shareholders and three (3)
Directors as follows:
1. Mr. Alex Adio — Shareholder/Chairman
2. Alhaji Kasimu Ibrahim — Shareholder/Member
3. Mr. Eric Akinnifesi Akinduro — Shareholder/Member
4. Alhaji Abdullahi S. Mahmoud — Director/Member
5. Mr. Asue Ighodalo — Director/Member
6. Mr. Olakunle Alake — Director/Member
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 authorising the Directors to fix their remuneration.
BY ORDER OF THE BOARD
2nd Floor, GDNL Building
Terminal ‘E’
Apapa Wharf
Apapa — Lagos

DANGOTE FLOUR MILLS PLC is committed to the best practice and procedures in corporate governance. It recognizes that
corporate governance is fundamental to earning the confidence and trust of the shareholders. It provides the structure through
which the objectives of the Company are set and the means of attaining such objectives. 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 code of corporate governance
for public companies provides the basis for promoting sound corporate governance in the Company. The governance framework
helps the Board to discharge its duties of providing oversight and strategic counsel in balance with its responsibility to ensure
conformity with regulatory requirements and acceptable risk.
The Board consists of 10 members, the Chairman, Ag. Managing Director, 1 Executive Director and 7 Non-Executive Directors.
THE BOARD
Appointment to the Board is made by Shareholders at the Annual General Meeting on the recommendation of the Board of
Directors.
The Board consists of ten (10) members comprising the Chairman, Ag. Managing Director, one (1) Executive Director and seven
(7) Non-Executive Directors.
The Board delegates the day-to-day running of the Company’s affairs to the Ag. Managing Director/Chief Executive. The Managing
Director/Chief Executive is supported in this task by the Executive Directors and Executive Management Committee.
The Board governs and supervises the overall activities of the Company through the Managing Director.
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, honest 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 plans;
• 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;
• Provide the Company with entrepreneurial leadership within a framework of prudent and effective controls which enables
risk to be assessed and managed;
• Deploy the Company’s resources to profitable use;
• Outline the Company’s strategic and corporate aims;
• Ensure that the necessary financial and human resources are in place for the Company to meet its objectives;
• Review management performance on a continuous basis;
• Set the Company’s values and standards;
• Take decisions objectively in the interest of the Company;
• Ensure that its obligations to its Shareholders and other stakeholders are understood and met;
• Constructively challenge and help develop proposals on strategies developed by Management.
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.
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.
The remuneration of Executive Directors is fixed and reviewed by a Committee of 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 whenever the need arises. During the year under review, the Board had a total of five (5) meetings.
Corporate Governance Report

STANDING COMMITTEES OF THE BOARD
The Board carries out some of the above responsibilities through the Board Committees whose terms of reference clearly set out
their roles, responsibilities, scope of authority and procedure for reporting to the Board.
1. Governance/Remuneration Committee
Composition:
(i) Mr. Asue Ighodalo
(ii) Alhaji Abdu Dantata
(iii) Mr. Uzoma Nwankwo
Functions:
(i) To review and make recommendations to the Board for approval of the Company’s Human Resources Policy and
organizational structure and any proposed amendments when necessary.
(ii) Review and advise on governance and compliance issues.
(iii) To make recommendations on remuneration structure for Non-Executive Directors and variable compensation for
executive and senior management.
(iv) Such other matters as the Board may delegate to the Committee.
2. Finance and Investment Committee
Composition:
(i) Alhaji Abdullahi S. Mahmoud — Chairman
(ii) Brigadier-Gen. S. L. Teidi (rtd), OFR — Member
(iii) Mr. Olakunle Alake — Member
Functions:
(i) To consider periodic financial statements.
(ii) To review Company activities, make projections and forecast for its growth.
(iii) To identify variances in the market.
(iv) To review developments in the Company.
(v) To identify and discuss new products and its processes.
(vi) To ensure that the Company is up to date with significant changes in accounting policies.
(vii) Overseeing the management and conduct of the business.
(viii) Ensuring the integrity of financial reports.
(ix) Overseeing the effectiveness and adequacy of internal control measures.
3. The Audit Committee
The Audit Committee is made up of six (6) members, consisting of three (3) representatives of the Shareholders and three
(3) members of the Board of Directors. Members of the Audit Committee are elected at the General Meetings. The
Committee, in compliance with the requirements of Corporate Governance practice is chaired by a Shareholder. The
Committee met during the year under review
Composition:
1. Mr. Alex Adio — Shareholder/Chairman
2. Mr. Eric Akinnifesi Akinduro — Shareholder
3. Alhaji Kasumu Ibrahim — Shareholder
4. Mr. Asue Ighodalo — Director
5. Mr. Olakunle Alake — Director
6. Alhaji Abdullahi S. Mahmoud — 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.
• Ensuring the independence and objectivity of the Audit (Statutory and Internal).
• 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.
COMPLIANCE STATEMENT
The Company filed its 2011 audited accounts with The Exchange in default of 21 days for which the sum of N=400,000.00 was
paid as penalty.
The Board will ensure maximum compliance in the coming year. However, The Nigerian Stock Exchange had earlier extended the
time for submission to 30 April, 2012.
Corporate Governance Report cont’d

Corporate Governance Report cont’d
ATTENDANCE OF MEETINGS BY MEMBERS OF THE BOARD/BOARD COMMITTEES FROM 1ST JANUARY TO
31ST DECEMBER 2011
BOARD OF DIRECTORS’ MEETINGS
Attendance
8th August 17th August 29th September 16th December 29th December
Alhaji Aliko Dangote, GCON A
Alhaji Sani Dangote
Mr. Olakunle Alake
Alhaji Abdullahi S. Mahmoud A A
Mr. Uzoma Nwankwo A A
Alhaji Abdu Dantata
Mr. Asue Ighodalo
Brigadier-General S. L. Teidi (Rtd), OFR
Mr. Ekanem Etim N/A N/A N/A
Mr. Suleiman Olarinde N/A N/A N/A
Mr. Narendra Kumar Somani N/A A
FINANCE AND INVESTMENT COMMITTEE MEETINGS
Attendance
8th August 16th December 28th December
Mr. Olakunle Alake
Alhaji Abdullahi S. Mahmoud A
Brigadier-General S. L. Teidi (Rtd), OFR
Mr. Ekanem Etim A
Mr. Suleiman Olarinde A
Mr. Narendra Kumar Somani N/A A
GOVERNANCE/REMUNERATION COMMITTEE MEETINGS
Attendance
15th July 15th December
Mr. Uzoma Nwankwo A
Mr. Asue Ighodalo
Alhaji Abdu Dantata
Mr. Narendra Kumar Somani N/A
AUDIT COMMITTEE MEETING
Attendance
23rd August
Mr. Olakunle Alake
Mr. Adio Alex
Mr. Akinduro Eric Akin
Mr. Kasimu Ibrahim

TO THE MEMBERS OF DANGOTE FLOUR MILLS PLC
In accordance with the provisions of Section 359(6) of the Companies and Allied Matters Act, 2004, we have examined
the Auditors’ report for the year ended 31st December, 2011. 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
practice. Having reviewed the Auditors’ findings and recommendations on Management matters, we are satisfied with
Management’s response therein.
Mr. Alex Adio
Chairman, Audit Committee
Members of the Committee
Alhaji Kasimu Ibrahim
Mr. Eric Akinnifesi Akinduro
Mr. Asue Ighodalo
Alhaji Abdullahi S. Mahmoud
Mr. Olakunle Alake
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 and its subsidiaries,
set out on pages 18 to 37 which comprise the consolidated balance sheet as at 31 December 2011, the consolidated
income statement, consolidated statement of cash flows and consolidated statement of value added for the year then
ended, and a summary of the significant accounting policies, financial summary and other explanatory information.
Directors’ Responsibility for the Consolidated Financial Statements
The Directors are responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with the Companies and Allied Matters Act, CAP C20, LFN 2004 and for such
internal control as the Directors determine are necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated 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
about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including
the assessment of the risks of material misstatement of the consolidated 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 consolidated 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 the Directors, as well as
evaluating the overall presentation of the consolidated 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 consolidated financial statements present fairly, in all material respects, the consolidated
financial position of Dangote Flour Mills Plc and its subsidiaries as at 31 December 2011, and of its financial performance
and its cash flows for the year then ended; the Company and its subsidiaries have kept proper books of account, which
are in agreement with the consolidated balance sheet and consolidated income statement in the manner required by the
Companies and Allied Matters Act, CAP C20, LFN 2004 and in accordance with the Statements of Accounting Standards
issued by the Financial Reporting Council of Nigeria.
Chartered Accountants
Lagos, Nigeria
16 May, 2012
Akintola Williams Deloitte
235 Ikorodu Road, Ilupeju
P.O. Box 965, Marina
Lagos,
Nigeria
Tel: +234 (1) 271 7800
Fax: +234 (1) 271 7801
www.deloitte.com/ng
Report of the Independent Auditors

Statement of Management Responsibilities
FOR THE PREPARATION AND APPROVAL OF THE FINANCIAL STATEMENTS for the Year Ended 31 December, 2011
The following statement, which should be read in conjunction with the independent auditors’ responsibilities stated in
the report of the independent auditors set out on page 16, is made with a view of distinguishing the respective responsibilities
of the management and those of the independent auditors in relation to the financial statements of Dangote Flour Mills
Plc.
Management is responsible for the preparation of the financial statements that present fairly the financial position of the
Company as at 31 December 2011 and the results of its operations, cash flows and changes in equity for the year then
ended, in compliance with the Statements of Accounting Standards (SAS) issued by the Financial Reporting Council of
Nigeria.
In preparing the financial statements, management is responsible for:
• Selecting suitable accounting principles and applying them consistently;
• Making judgments and estimates that are reasonable and prudent;
• Stating whether SAS’s have been followed, subject to any material departures disclosed and explained in the financial
statements; and
• Preparing the financial statements on a going concern basis, unless it is inappropriate to presume that the Company
will continue in business for the foreseeable future.
Management is also responsible for:
• Designing, implementing and maintaining an effective and sound system of internal controls throughout the Company;
• Maintaining proper accounting records that disclose, with reasonable accuracy at any time, the financial position of
the Company, and which enable them to ensure that the financial statements of the Company comply with SAS;
• Maintaining statutory accounting records in compliance with legislation;
• Taking such steps as are reasonably available to them to safeguard the assets of the Company; and
• Detecting and preventing fraud and other irregularities.
The financial statements for the year ended 31 December 2011 were approved on 16 May 2012.
Mr. Ekanem Etim Mr. Suleiman Olarinde
Ag. Group Managing Director Finance Director

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.
2. Consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries which
are Dangote Pasta Limited, Dangote Agrosacks Limited and Dangote Noodles Limited whose financial statements
are equally made up to 31 December. All inter-company transactions and balances including unrealised inter-
company profits are eliminated.
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:
%
Freehold land — —
Leasehold land and buildings — 2
Plant and machinery — 6
Motor vehicles — 25
Trucks — 25
Tools and equipment — 20
Furniture and fittings — 20
Computer equipment and softwares — 33
Depreciation is not provided in respect of freehold land and assets under construction.
6. Stocks
Stocks are stated at the lower of cost based on weighted average cost 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 consolidated 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.
Statement of Significant Accounting Policies
2
–
3
1
–
3

(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.
10. Employees retirement benefit scheme
The Company and its subsidiaries make provision for retirement benefits in accordance with the Pension
Reform Act of 2004. The contribution of the employer and employee is 7.5% of employee basic salary,
housing and transport allowances.
The Company and its subsidiaries also operate a gratuity scheme for its permanent Nigerian staff, the benefits under
which are related to employees’ length of service and gross annual emolument. The gratuity is unfunded. The
provision for liability in respect thereof is provided in full in the financial statements.
11. Investments
Investments are stated at cost after specific provision for diminution in value.
12. Provisions
Provisions are recognized when the Company and its subsidiaries have 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 Group’s business segments are presented by products that are subject to similar risks and returns.
14. Earnings per share
Earnings per share are based on the profit after taxation and the weighted average number of issued and fully paid
ordinary shares during the year.
Statement of Significant Accounting Policies cont’d

2011 2010 2011 2010
Note N=’000 N=’000 N=’000 N=’000
Turnover 3 66,281,326 67,600,954 38,679,844 42,695,383
Cost of sales (56,582,360) (54,398,306) (31,737,937) (33,659,644)
Gross profit 9,698,966 13,202,648 6,941,907 9,035,739
Distribution and administrative expenses (5,999,929) (7,042,150) (2,910,500) (2,556,816)
Operating profit 3,699,037 6,160,498 4,031,407 6,478,923
Other income 4 381,526 1,035,558 259,472 561,131
Profit before interest payable 4,080,563 7,196,056 4,290,879 7,040,054
Interest income 8,724 22,287 3,767 13,964
Interest payable and similar charges (2,208,313) (2,306,458) (1,761,187) (1,572,941)
Profit before taxation and exceptional item 5 1,880,974 4,911,885 2,533,459 5,481,077
Exceptional item 10.2 (1,484,265) — (1,484,265) —
Profit before tax and after exceptional item 396,709 4,911,885 1,049,194 5,481,077
Taxation 6 281,005 (2,189,310) (261,710) (1,727,829)
677,714 2,722,575 787,484 3,753,248
Attributable to:
Equity holders — parent 20 475,431 2,762,142 787,484 3,753,248
Non-controlling interest 21 202,283 (39,567) — —
677,714 2,722,575 787,484 3,753,248
Earnings per share — Basic (kobo) 31 14 54 16 75
The accounting policies on pages 18 and 19 and other explanatory notes on pages 23 to 35 form part of these consolidated
financial statements.
Consolidated Profit and Loss Account

Consolidated Balance Sheet
as at 31 December, 2011
}Directors
2011 2010 2011 2010
Note N=’000 N=’000 N=’000 N=’000
FIXED ASSETS 7 44,443,322 41,229,708 19,496,207 19,880,243
INVESTMENTS 8 — — 7,553,637 7,553,637
DEFERRED TAX ASSETS 16.1 422,323 — — —
CURRENT ASSETS
Stocks 9 12,021,921 8,257,459 4,899,136 2,926,685
Trade debtors 10 8,597,502 11,643,808 5,326,781 8,560,201
Other debtors and prepayments 11 2,340,529 1,223,495 365,738 807,868
Due from subsidiaries 27.1 — — 16,123,558 13,493,302
Due from related parties 27.3 13,196,480 5,066,198 13,734,353 5,252,483
Bank and cash 23 2,431,519 2,190,071 1,286,860 1,488,738
38,587,951 28,381,031 41,736,426 32,529,277
CREDITORS: Amounts falling due
within one year
Bank loans and overdrafts 12 23,296,158 7,976,685 19,895,984 4,481,150
Trade creditors 4,701,607 10,875,644 3,706,090 9,947,700
Other creditors and accruals 13 11,032,543 8,077,284 5,354,899 3,808,441
Due to subsidiaries 27.2 — — 1,156,049 910,005
Dividend payable 14 216,669 1,900,472 216,669 1,900,472
Loan from parent company 15.2 5,790,342 6,050,000 5,500,000 5,800,000
Taxation 6 1,333,931 1,001,464 1,114,176 697,372
Term loan 15 2,016,000 463,820 — —
Due to related parties 27.4 2,120,978 1,881,052 2,236,273 2,154,529
50,508,228 38,226,421 39,180,140 29,699,669
NET CURRENT (LIABILITIES)/ASSETS (11,920,277) (9,845,390) 2,556,286 2,829,608
TOTAL ASSETS LESS CURRENT LIABILITIES 32,945,368 31,384,318 29,606,130 30,263,488
Deferred tax liability 16 (2,938,431) (3,409,430) (2,844,534) (3,136,273)
CREDITORS: Amount falling due
after one year
Term loan 15 (2,184,000) — — —
PROVISION FOR LIABILITIES AND
CHARGES
Gratuity 17 (977,497) (828,013) (728,605) (638,061)
NET ASSETS 26,845,440 27,146,875 26,032,991 26,489,154
CAPITAL AND RESERVES
Share capital 18 2,500,000 2,500,000 2,500,000 2,500,000
Share premium 19 18,116,249 18,116,249 18,116,249 18,116,249
Reserve 20 5,823,879 6,327,597 5,416,742 5,872,905
Shareholders’ fund 26,440,128 26,943,846 26,032,991 26,489,154
Non-controlling interest 21 405,312 203,029 — —
26,845,440 27,146,875 26,032,991 26,489,154
The consolidated financial statements on pages 18 to 37 were approved by the Board of Directors on 16 May, 2012 and
signed on its behalf by:
Alhaji Aliko Dangote
Mr. Ekanem Etim
The accounting policies on pages 18 and 19 and other explanatory notes on pages 23 to 35 form part of these consolidated

Consolidated Statement of Cash Flows
2011 2010 2011 2010
Note N=’000 N=’000 N=’000 N=’000
Cash flows from operating activities
Cash receipts from customers 70,158,270 66,057,186 42,368,223 42,644,129
Cash payments to suppliers and employees (74,175,758) (52,338,236) (49,631,103) (35,695,980)
Value added tax (net) (2,329,179) (813,705) (2,133,446) (667,250)
Income tax paid 6 (279,850) (76,715) (136,645) (53,804)
Net cash (used in)/provided by
operating activities 22 (6,626,517) 12,828,530 (9,532,971) 6,227,095
Cash flows from investing activities
Purchase of fixed assets 7 (7,049,153) (9,494,147) (1,342,518) (2,522,840)
Investment in subsidiary — — — (90,000)
Disposal of fixed assets 4,515 — — —
Non-controlling interest in Noodles on acquisition — 10,000 — —
Net cash used in investing activities (7,044,638) (9,484,147) (1,342,518) (2,612,840)
Cash flows from financing activities
Dividend paid (2,683,803) (1,421,988) (2,683,803) (1,421,988)
Interest income 8,724 22,287 3,767 13,964
Term loan:
— Obtained 15 4,200,000 1,120,000 — —
— Repaid 15 (463,820) (656,180) — —
Intercompany loan obtained 15.2 40,342 6,250,000 — 6,000,000
Intercompany loan repaid 15.2 (300,000) (200,000) (300,000) (200,000)
Interest paid (2,208,313) (2,306,458) (1,761,187) (1,572,941)
Net cash (used in)/provided by
financing activities (1,406,870) 2,807,661 (4,741,223) 2,819,035
Net (decrease)/increase in cash
and cash equivalents (15,078,025) 6,152,044 (15,616,712) 6,433,290
Cash and cash equivalents at 1 January (5,786,614) (11,938,658) (2,992,412) (9,425,702)
Cash and cash equivalents at 31 December 23 (20,864,639) (5,786,614) (18,609,124) (2,992,412)

DA N G OT E F L O U R M I L LS P L C 23
1. THE COMPANY
1.1 Legal form
The Company started operating as a division of Dangote Industries Limited in 1999. It was incorporated as a
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.
In addition to the above, the Company acquired a controlling interest in Dangote Noodles Limited in 2008.
Information on the Company’s subsidiaries are as follows:
Subsidiaries Percentage held Principal activities
Dangote Pasta Limited 99 Manufacture of Spaghetti, Macaroni and other Pasta
products.
Dangote Agrosacks Limited 99 Manufacture of packaging materials. It holds 75%
equity in Obajana Agrosacks Limited.
Dangote Noodles Limited 90 Manufacture and marketing of noodles products.
1.2 Principal activities
The principal activities of the Company are the milling, processing and marketing of branded flour products
and the manufacturing and sale of sacks.
2. STRATEGIC CONSIDERATIONS
Dangote Industries Limited has confirmed its capacity and commitment to continue to support Dangote Flour Mills
Group and has committed to take over all external borrowings and provide medium-term loan facilities, should the
need arise.
3. SEGMENT REPORTING
Flour Pasta Noodles
products Sacks products products Group
N=’000 N=’000 N=’000 N=’000 N=’000
3.1 Segment operating results
At 31 December 2011
Revenue 37,594,544 13,499,253 12,581,764 2,605,765 66,281,326
Cost of sales (30,656,020) (12,126,334) (11,137,230) (2,662,776) (56,582,360)
Gross profit 6,938,524 1,372,919 1,444,534 (57,011) 9,698,966
Profit before adjustment of
unrealised profit on stock 1,052,843 402,439 (116,168) (935,372) 403,742
Unrealised profit on stock (3,649) — — (3,384) (7,033)
1,049,194 402,439 (116,168) (938,756) 396,709
Taxation (261,710) 176,925 365,790 — 281,005
Profit/(loss) after taxation 787,484 579,364 249,622 (938,756) 677,714
At 31 December 2010
Revenue 42,695,383 12,783,696 10,917,607 1,204,268 67,600,954
Cost of sales (32,717,881) (10,954,880) (9,549,291) (1,176,254) (54,398,306)
Gross profit 9,977,502 1,828,816 1,368,316 28,014 13,202,648
Profit before taxation 5,481,077 1,118,053 248,997 (1,936,242) 4,911,885
Taxation (1,727,829) (380,602) (80,879) — (2,189,310)
Profit after taxation 3,753,248 737,451 168,118 (1,936,242) 2,722,575
Notes to the Consolidated Financial Statements

Flour Pasta Noodles
products Sacks products products Group
N=’000 N=’000 N=’000 N=’000 N=’000
3.2 Segment assets/liabilities
At 31 December 2011
Total assets 61,231,501 22,505,554 20,382,397 2,498,615 106,618,067
Intercompany adjustments (16,123,486) (7,040,986) (54,767) 54,768 (23,164,471)
45,108,015 15,464,568 20,327,630 2,553,383 83,453,596
Total liabilities 42,755,795 15,160,269 16,582,951 5,273,612 79,772,627
Intercompany adjustments (1,156,049) — (19,462,418) (2,546,004) (23,164,471)
41,599,746 15,160,269 2,879,467 2,727,608 56,608,156
At 31 December 2010
Total assets 52,409,520 15,879,751 18,167,088 1,963,007 88,419,366
Intercompany adjustments (13,493,230) 914,116 (3,181,582) (3,047,931) (18,808,627)
38,916,290 16,793,867 14,985,506 (1,084,924) 69,610,739
Total liabilities 33,474,003 9,100,616 14,625,466 3,799,249 60,999,334
Intercompany adjustments (910,005) (3,388,861) (11,241,897) (2,994,707) (18,535,470)
32,563,998 5,711,755 3,383,569 804,542 42,463,864
Segment assets consist of fixed assets, investments, deferred tax assets, cash and bank, receivables, inventories
and due from related companies.
Segment liabilities consist of bank loans and overdraft, payables, due to related companies, dividend payable,
taxation and gratuity.
3.3 There is also no distinguishable component of the entity that is engaged in providing products or services
within a particular economic environment and that is subject to risk and returns that are different from those
of components operating in other economic environments.
2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
4. OTHER INCOME
Provision no longer required 221,660 303,302 205,395 287,132
Sundry income 132,916 697,256 27,188 238,999
Export grant — 35,000 — 35,000
Insurance claims 26,950 — 26,889 —
381,526 1,035,558 259,472 561,131
5. PROFIT BEFORE TAXATION AND
EXCEPTIONAL ITEM
This is arrived at after charging:
Directors’ emoluments:
— Fees 2,500 3,100 2,500 3,100
— Salaries and allowances 103,263 107,781 63,757 54,075
Audit fee 57,788 61,768 31,000 30,000
Depreciation 3,760,371 3,391,277 1,661,113 1,493,041
Loss on sale of fixed assets 1,982 — — —
Management fee (Note 28) — 593,962 — —
Notes to the Consolidated Financial Statements cont’d

2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
6. TAXATION
Profit and loss account
Tax based on the profit for the year
Income tax 530,387 501,919 497,432 400,621
Education tax 81,930 203,704 56,017 138,166
Prior year underprovision — 21,488 — —
612,317 727,111 553,449 538,787
Deferred taxation (Note 16) (893,322) 1,462,199 (291,739) 1,189,042
(281,005) 2,189,310 261,710 1,727,829
Balance sheet
At 1 January 1,001,464 351,068 697,372 212,389
As per profit and loss account 612,317 727,111 553,449 538,787
Payments during the year (279,850) (76,715) (136,645) (53,804)
At 31 December 1,333,931 1,001,464 1,114,176 697,372
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 E4, LFN 2004.
7. FIXED ASSETS
7.1 The Group
Freehold/ Computer Assets
Leasehold equipment Furniture under
land and Plant and Tools and and and Motor construc-
buildings machinery equipment softwares fittings vehicles Trucks tion Total
N=’000 N=’000 N=’000 N=’000 N=’000 N=’000 N=’000 N=’000 N=’000
Cost
At 1 January 3,718,994 33,287,036 800,087 142,436 284,908 1,654,630 2,043,070 11,363,311 53,294,472
Additions 817,521 1,630,567 47,082 23,357 29,109 534,783 725,500 3,241,234 7,049,153
Transfers 13,034 4,318,703 663 — — — — (4,332,400) —
Disposals — — — (4,981) — (12,027) — — (17,008)
Adjustments (Note 7.4) – (5,995) – – (4,273) – – (61,375) (71,643)
At 31 December 4,549,549 39,230,311 847,832 160,812 309,744 2,177,386 2,768,570 10,210,770 60,254,974
Depreciation
At 1 January 305,872 9,471,021 644,516 100,568 155,850 727,838 659,099 — 12,064,764
Charge for the year 75,883 2,472,234 117,819 24,968 46,062 437,706 585,699 — 3,760,371
Disposals — — — (3,495) — (7,016) — — (10,511)
Adjustments (Note 7.4) — (1,929) — — (1,043) — — — (2,972)
At 31 December 381,755 11,941,326 762,335 122,041 200,869 1,158,528 1,244,798 — 15,811,652
Net book value
At 31 December 2011 4,167,794 27,288,985 85,497 38,771 108,875 1,018,858 1,523,772 10,210,770 44,443,322
At 31 December 2010 3,413,122 23,816,015 155,571 41,868 129,058 926,792 1,383,971 11,363,311 41,229,708

7.2 The Company
Computer Assets
Leasehold equipment Furniture under
land and Plant and Tools and and and Motor construc-
buildings machinery equipment softwares fittings vehicles Trucks tion Total
N=’000 N=’000 N=’000 N=’000 N=’000 N=’000 N=’000 N=’000 N=’000
Cost
At 1 January 2,411,345 13,255,456 470,622 75,949 123,630 256,080 2,043,070 6,571,993 25,208,145
Additions 5,663 4,155 15,183 11,395 16,234 24,187 725,500 540,201 1,342,518
Adjustments (Note 7.4) – (5,995) – – – – – (61,375) (67,370)
Transfers 13,034 76,170 663 — — — — (89,867) —
At 31 December 2,430,042 13,329,786 486,468 87,344 139,864 280,267 2,768,570 6,960,952 26,483,293
Depreciation
At 1 January 191,226 3,801,437 385,959 56,730 77,677 155,774 659,099 — 5,327,902
Charge for the year 48,525 888,444 46,054 8,627 20,736 63,028 585,699 — 1,661,113
Adjustments (Note 7.4) — (1,929) — — — — — — (1,929)
At 31 December 239,751 4,687,952 432,013 65,357 98,413 218,802 1,244,798 — 6,987,086
Net book value
At 31 December 2011 2,190,291 8,641,834 54,455 21,987 41,451 61,465 1,523,772 6,960,952 19,496,207
At 31 December 2010 2,220,119 9,454,019 84,663 19,219 45,953 100,306 1,383,971 6,571,993 19,880,243
7.3 Assets under construction represent expenditure incurred on the Danvita Mills at Apapa.
7.4 Adjustments are in respect of certain assets previously capitalised in error and cost of obsolete spares for
Semolina project included in capital work-in-progress now rectified.
The Company
2011 2010
N=’000 N=’000
8. 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
Dangote Agrosacks Limited 4,956,000 4,956,000
Dangote Noodles Limited
Dangote Noodles Limited 90,000 90,000
7,553,637 7,553,637

2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
9. STOCKS
Raw materials and work-in-progress 7,084,813 4,618,241 3,562,013 2,227,736
Finished goods 2,367,772 2,058,540 195,456 186,179
Engineering spares and other stocks 2,151,319 1,479,209 355,109 319,326
Goods-in-transit 786,558 193,444 786,558 193,444
12,390,462 8,349,434 4,899,136 2,926,685
Provision for slow moving items (368,541) (91,975) — —
12,021,921 8,257,459 4,899,136 2,926,685
10. TRADE DEBTORS
Trade debtors 13,143,493 14,430,365 9,353,579 10,926,326
Provision for bad and doubtful debts (4,545,991) (2,786,557) (4,026,798) (2,366,125)
8,597,502 11,643,808 5,326,781 8,560,201
10.1 Provision for bad debts
Provision for bad and doubtful debts
— insured (1,794,377) (310,112) (1,794,377) (310,112)
Provision for bad and doubtful debts
— others (2,751,614) (2,476,445) (2,232,421) (2,056,013)
(4,545,991) (2,786,557) (4,026,798) (2,366,125)
10.2 N= 3,588,954,753 of the Dangote Flour Mills Plc’s trade debtors are backed by an insurance bond. The amounts
are overdue by more than one year; however, the Company is confident that these would be recovered from
the insurance companies. The two insurance companies involved, namely NEM Insurance Plc and Niger Insurance
Plc, are not making significant payments against the policies. The Company has commenced discussions with
the National insurance commission (NAICOM), the insurance regulatory body, to facilitate adjudication in this
matter with the two insurance companies. For prudence sake, we have provided for 50% of the amounts
concerned, amounting to N=1,794,377,377. In view of previous provisions, the Company has received a letter of
indemnity from Dangote Industries Limited confirming that it will make up any shortfall in excess of this 50%
provision should the need arise.
2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
11. OTHER DEBTORS AND PREPAYMENTS
Other debtors 603,417 370,613 85,144 74,006
Advances to suppliers 1,783,098 667,579 526,466 667,579
Staff debtors 75,570 113,022 34,123 95,771
Prepayments 427,039 371,854 239,165 251,538
2,889,124 1,523,068 884,898 1,088,894
Provision for doubtful balances (548,595) (299,573) (519,160) (281,026)
2,340,529 1,223,495 365,738 807,868
12. BANK LOANS AND OVERDRAFTS
Bank overdrafts 10,085,546 4,431,208 8,185,372 1,868,623
Short-term loans 13,210,612 3,545,477 11,710,612 2,612,527
23,296,158 7,976,685 19,895,984 4,481,150
The loans and overdrafts are secured by Corporate Guarantee of Dangote Industries Limited.

2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
13. OTHER CREDITORS AND ACCRUALS
Customers’ deposits 1,570,285 1,121,173 900,404 704,918
Accruals 4,266,239 2,140,109 1,329,133 627,245
Staff pension (Note 13.1) 116,281 104,871 17,085 10,875
VAT payable 1,904,891 2,123,395 984,212 1,251,595
Other creditors 2,138,183 2,458,614 1,246,118 1,156,866
Withholding tax 220,547 129,122 107,190 56,942
PAYE, NHF and ITF deductions 34,516 — — —
Advance on haulage 3,649 — — —
Contractors 7,195 — — —
Deferred income (Note 13.2) 770,757 — 770,757 —
11,032,543 8,077,284 5,354,899 3,808,441
13.1 Staff pension
At 1 January 104,871 88,772 10,875 6,558
Provision for the year 434,807 318,943 161,440 118,589
Payment for the year (423,397) (302,844) (155,230) (114,272)
At 31 December 116,281 104,871 17,085 10,875
13.2 Deferred income represents wheat rebate received in respect of wheat imported in 2011 which was included
in closing stock at year end. This credit amount is deferred and it is to be used to reduce cost of sales in future
when the wheat is consumed.
2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
14. DIVIDEND PAYABLE
At 1 January 1,900,472 822,460 1,900,472 822,460
Dividend declared (Note 20) 1,000,000 2,500,000 1,000,000 2,500,000
Payment during the year (2,683,803) (1,421,988) (2,683,803) (1,421,988)
At 31 December 216,669 1,900,472 216,669 1,900,472
15. TERM LOAN
At 1 January 463,820 — — —
Loan obtained during the year (Note 15.1) 4,200,000 1,120,000 — —
Repayment during the year (463,820) (656,180) — —
At 31 December 4,200,000 463,820 — —
Due within one year (2,016,000) (463,820) — —
Due after more than one year 2,184,000 — — —
15.1 During the year, Agrosacks obtained a N=4.5 billion loan from Guaranty Trust Bank Plc. The Company has drawn
down N=4.2 billion to finance the purchase and installation of 3 new production lines for the manufacture of
polypropylene bags and sacks and refinance N=1.4 billion facilities with Oceanic Bank Plc. The loan was obtained
in January 2011 and is repayable within 36 months at 11% interest rate per annum with a moratorium period
of 12 months. The principal repayment commenced in January 2012. The loan is secured by debenture on the
assets of Dangote Agrosacks Limited and Obajana Agrosacks Limited.

2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
15.2 Loan from parent company
At 1 January 6,050,000 — 5,800,000 —
Loan obtained during the year 40,342 6,250,000 — 6,000,000
Repayment during the year (300,000) (200,000) (300,000) (200,000)
At 31 December 5,790,342 6,050,000 5,500,000 5,800,000
The Company obtained a facility of N=5 billion for its working capital requirement and N=1billion commercial
paper from Dangote Industries Limited. The working capital facility is repayable on 27 June 2012 at an interest
rate of 9.25%. The Commercial Paper is repayable in equal monthly instalments of N=100 million at an interest
rate of 9%. In addition to the Company loans, a subsidiary, Dangote Noodles Limited obtained a loan of N=290
million from Dangote Industries Limited for 90 days repayable at interest rate is 8.5% per annum. The facility
has been rolled over for another 12 months repayable on a rollover basis at interest rate of 10% per annum.
2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
16. DEFERRED TAX LIABILITY
At 1 January (3,409,430) 328,067 (3,136,273) 328,067
Prior year adjustment (Note 20.1) — (2,275,298) — (2,275,298)
Provision for the year (Note 6) 893,322 (1,462,199) 291,739 (1,189,042)
Transferred to deferred tax assets (16.1) (422,323) — — —
At 31 December (2,938,431) (3,409,430) (2,844,534) (3,136,273)
16.1 Deferred tax asset
Provision for the year (Note 16) 422,323 — — —
The Group has adopted the Statement of Accounting Standards (SAS) 19 on deferred taxation which is computed
using the liability method. The deferred tax asset arising from Dangote Pasta Limited has been recorded in
these financial statements as it is likely that the amount will be recoverable from profit from operations in the
foreseeable future.
2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
17. GRATUITY
At 1 January 828,013 559,926 638,061 464,623
Provision for the year 277,743 310,670 183,274 200,483
Payments during the year (128,259) (42,583) (92,730) (27,045)
At 31 December 977,497 828,013 728,605 638,061
The staff gratuity provision is not funded.
18. 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
19. SHARE PREMIUM
At 31 December 18,116,249 18,116,249 18,116,249 18,116,249

2011 2010
Total Total
N=’000 N=’000
20. RESERVES
The Group
At 1 January 6,327,597 7,573,899
Prior year adjustment (Note 20.1) 20,851 (1,513,675)
Dividend declared (1,000,000) (2,500,000)
Consolidation adjustment — 5,231
Transferred from profit and loss account 475,431 2,762,142
At 31 December 5,823,879 6,327,597
The Company
At 1 January 5,872,905 6,133,332
Prior year adjustment (243,647) (1,513,675)
Dividend declared (1,000,000) (2,500,000)
Transferred from profit and loss account 787,484 3,753,248
At 31 December 5,416,742 5,872,905
20.1 Prior year adjustment
Intercompany reconciliation adjustment from long outstanding balances — 619,228
Reversal of stale cheque for duty duplicated in prior year — 58,418
Reconciliation adjustment from long outstanding balances in creditors — 83,977
Deferred tax (Note 16) — (2,275,298)
Reversal of sales invoices duplicated in prior year (Note 20.2) (243,647) —
Prior year adjustment on interest refunded (Note 20.3) 264,498 —
20,851 (1,513,675)
20.2 The prior year adjustment relates to the correction of duplicated invoices in customers’ accounts in years 2006
and 2007.
20.3 This adjustment in Agrosacks Limited was in respect of interest overcharged in previous years by Oceanic Bank
Plc refunded during the year.
20.4 On 29 September 2011, a dividend of 20 kobo per ordinary share of 50 kobo each totalling N=1 billion in
respect of year 2010 was approved by shareholders and subsequently paid.
At the Board of Directors meeting held on16 May 2012, the Directors proposed a final dividend of 10 kobo per
ordinary share of 50 kobo each amounting to N= 500 million. The dividend is subject to approval by the
shareholders at the Annual General Meeting net of withholding tax at the appropriate rate. Consequently, it has
not been included as a liability in these financial statements as they do not constitute present obligation of the
Company in accordance with Statement of Accounting Standard, SAS 23 on Provisions, Contingent Liabilities
and Contingent Assets.

The Group
2011 2010
N=’000 N=’000
21. NON-CONTROLLING INTERESTS
Profit and loss account
Dangote Agrosacks Limited 290,642 152,626
Dangote Pasta Limited 2,533 1,896
Dangote Noodles Limited (93,537) (193,874)
Share of prior year under provision of tax liability — (215)
Non-controlling interest share of prior year adjustment 2,645 —
202,283 (39,567)
Balance sheet
At 1 January 203,029 232,596
On acquisition of Dangote Noodles Limited — 10,000
Profit and loss 202,283 (39,567)
At 31 December 405,312 203,029
2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
22. RECONCILIATION OF NET INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
Profit after taxation and exceptional item 677,714 2,722,575 787,484 3,753,248
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 3,760,371 3,391,277 1,661,113 1,493,041
Interest income (8,724) (22,287) (3,767) (13,964)
Interest expenses 2,208,313 2,306,458 1,761,187 1,572,941
Prior year adjustment 20,851 (1,513,675) (243,647) (1,513,675)
Fixed assets adjustment/transfer 68,671 111,361 65,441 111,361
Consolidation adjustment — 5,231 — —
Loss on disposal of fixed assets 1,982 — — —
Changes in assets and liabilities:
(Increase)/decrease in stocks (3,764,462) (10,541) (1,972,451) 322,103
Increase in trade debtors 3,046,306 (2,240,875) 3,233,420 (722,105)
Decrease/(increase) in other debtors
and prepayments (1,117,034) 458,347 442,131 144,371
Decrease/(increase) in due from subsidiaries — — (2,630,257) (3,224,268)
Decrease/(increase) in due from related companies (8,130,282) 1,316,354 (8,481,870) (586,994)
Increase in trade creditors (6,174,037) 4,467,365 (6,241,610) 4,733,111
(Decrease)/increase in other creditors and accruals 2,955,259 (298,375) 1,546,457 (1,429,514)
(Decrease)/increase in due to related companies 239,926 (2,520,665) 81,745 (2,470,358)
(Decrease)/increase in due to subsidiaries — — 246,044 (64,964)
Increase in taxation payable 332,467 650,396 416,804 484,983
Increase in gratuity provision 149,484 268,087 90,544 173,438
(Decrease)/ increase in deferred tax liability (470,999) 3,737,497 (291,739) 3,464,340
Increase in deferred tax asset (422,323) — — —
Total adjustments (7,304,231) 10,105,955 (10,320,456) 2,473,847
Net cash provided by operating activities (6,626,517) 12,828,530 (9,532,971) 6,227,095

2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
23. RECONCILIATION OF CASH AND
CASH EQUIVALENTS
Cash and bank balances 2,431,519 2,234,799 1,286,860 1,533,466
Provision — (44,728) — (44,728)
2,431,519 2,190,071 1,286,860 1,488,738
Bank loans and overdrafts (23,296,158) (7,976,685) (19,895,984) (4,481,150)
(20,864,639) (5,786,614) (18,609,124) (2,992,412)
24. INFORMATION REGARDING DIRECTORS
AND EMPLOYEES
24.1 Directors
(i) Directors’ emolument comprises:
Fees 2,500 3,100 2,500 3,100
Salaries and allowances 103,263 107,781 63,757 54,075
105,763 110,881 66,257 57,175
(ii) Highest paid Director 24,270 24,270 24,270 24,270
(iii) The number of Directors excluding the
Chairman with gross emoluments within
the bands stated below were:
N= N= Number Number Number Number
Up to 5,000,000 8 8 8 8
10,000,001 — 15,000,000 3 3 — —
15,000,001 and above 2 2 2 2
24.2 Employees
Average number of persons employed
during the year:
Management 374 207 114 115
Senior staff 1,055 853 449 410
Junior staff 3,503 3,396 465 406
4,932 4,456 1,028 931
N=’000 N=’000 N=’000 N=’000
Aggregate payroll costs:
Wages, salaries, allowances and other benefits 3,175,924 3,183,625 1,613,609 1,472,432
Provision for gratuity 277,743 310,670 183,274 200,483
Pension cost 113,479 62,981 40,296 31,438
3,567,146 3,557,276 1,837,179 1,704,353

2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
The number of employees with gross
emoluments within the bands stated
below are:
N= N= Number Number Number Number
Up to 200,000 886 — — —
200,001 — 400,000 2,021 1,275 — 2
400,001 — 600,000 498 1,450 114 268
600,001 — 800,000 368 581 175 159
800,001 — 1,000,000 512 502 252 145
1,000,001 and above 647 648 487 357
4,932 4,456 1,028 931
25. CONTINGENT LIABILITIES
25.1 There are contingent liabilities in respect of pending litigation amounting to N=190.59 million (2010 – Nil). The
Directors are of the opinion that the liabilities will not result in outflow of resources and therefore no provision
has been made in these financial statements.
25.2 The Directors are of the opinion that all known commitments and liabilities which are relevant in assessing
the state of affairs of the Group has been taken into consideration in the preparation of these consolidated
26. CAPITAL COMMITMENTS
2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
Capital commitments 68,858 336,354 68,858 336,354
The capital commitments were made for capacity expansion projects in Apapa.
27. RELATED PARTY TRANSACTIONS
During the year the Company had dealings with subsidiaries and related companies. The balances emanating from
the transactions have been disclosed in the balance sheet as analysed below:
2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
27.1 Due from subsidiaries
Dangote Pasta Limited — — 13,585,059 11,898,469
Dangote Noodles Limited — — 2,538,499 1,594,833
— — 16,123,558 13,493,302
27.2 Due to subsidiaries
Dangote Agrosacks Nigeria Limited — — 1,156,049 910,005

2011 2010 2011 2010
N=’000 N=’000 N=’000 N=’000
27.3 Due from related parties
Dangote Cement Plc 372,048 1,657,430 — —
Dangote Industries Limited 12,547,901 3,424,703 13,734,564 5,226,905
National Salt Company of Nigeria Plc 75,830 73,973 — 25,649
Dangote Fisheries Nigeria Limited 1,500 1,500 1,500 1,500
Dangote Port Operations — 200 — 140
Dangote Textiles Nigeria Limited 55,593 55,593 51,000 51,000
Dangote Foundation 66,903 61,787 — —
Savannah Sugar Limited — 50 — —
Dangote Sugar Refinery Plc 120,100 15,341 — —
ADSTAR International Company 3,353 — — —
Dangote Freight Limited 15,381 — — —
Others 339,510 78,946 — —
13,598,119 5,369,523 13,787,064 5,305,194
Less provision (401,639) (303,325) (52,711) (52,711)
13,196,480 5,066,198 13,734,353 5,252,483
27.4 Due to related parties
Dangote Nigeria Limited 76,816 76,709 68,061 68,061
Dangote Transport Nigeria Limited 1,871,357 1,773,245 1,779,631 1,779,631
Dangote Sugar Refinery Plc — — 100,883 61,295
Bluestar Shipping Company 44,502 4,592 48,846 4,592
Greenview Development Nigeria Limited 27,591 26,500 27,591 27,591
National Salt Company of Nigeria Plc — — 924 —
Dangote Port Operations 9,813 — 9,813 —
Dansa Foods 1,493 — — —
Dangote Cement Plc — — 200,524 213,359
Dancom Technologies Limited 50,630 6 — —
Bulk Pack Nigeria Limited 20,527 — — —
Others 18,249 — — —
2,120,978 1,881,052 2,236,273 2,154,529
27.5 Dangote Pasta Limited
Dangote Pasta Limited is a subsidiary company to Dangote Flour Mills Plc. During the year, the supply of wheat
to Dangote Pasta Limited amounted to N=8.93 billion (2010: N=12.1 billion).
27.6 Dangote Agrosacks Nigeria Limited
Dangote Agrosacks Nigeria Limited is a subsidiary of Dangote Flour Mills Plc. During the year, the Company
had transactions amounting to N=657 million (2010: N=910 million) for the supply of bags for packaging of
Flour, Bran, Danvita etc.
27.7 Dangote Industries Limited
Dangote Industries Limited (DIL) is the parent Company of Dangote Flour Mills Plc. DIL undertakes payments
for expansion projects, recommends external consultants, negotiates bank facilities and purchases raw materials
on behalf of the Group.
DIL operates a margin call account along with its related party, Bulk Commodities (See Note 27.12) in relation
to the wheat purchase transactions and predetermines the price of wheat paid by Dangote Flour Mills for the
year to 31 December 2011 at $270 per tonne including carriage, freight and other charges, on commercial
terms that may or may not be available with third parties (2010 — $270 per tonne).
27.8 Dangote Transport Nigeria Limited
Dangote Transport Nigeria Limited is a related company to Dangote Flour Mills Plc. The Group had transactions
with respect to haulage of finished products to customers as well as wheat to other plants.

27.9 Dangote Sugar Refinery Plc
Dangote Sugar Refinery Plc is a related company to Dangote Flour Mills Plc. Dangote Sugar supplies power to
Dangote Flour Mills Plc.
27.10 National Salt Company of Nigeria Plc (NASCON)
NASCON is a related company to Dangote Flour Mills Plc. There were no material transactions between the
two companies during the year.
27.11 Dangote Noodles Limited
Dangote Noodles Limited is a subsidiary company of Dangote Flour Mills Plc. During the year the Company
had transactions amounting to N=1.09 billion (2010: N=1.46 billion) for flour supply and other payments
undertaken on behalf of Dangote Noodles Limited.
27.12 Bulk Commodities
Bulk Commodities is a related party of Dangote Industries Limited, the parent Company of Dangote Flour
Mills Plc.
Bulk Commodities, a Dubai based entity, provides support in organisation of the carriage and freight for
Dangote Flour Mills Plc as well as providing financing of margin calls on behalf of Dangote Industries Limited
for the purchase of wheat on behalf of Dangote Flour Mills Plc.
28. MANAGEMENT FEE
All the companies within the Group, namely Dangote Flour Mills Plc., Dangote Pasta Limited, Dangote Agrosacks
Limited and Dangote Noodles 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 Dangote
Flour Mills Plc, Dangote Pasta Limited, Dangote Agrosacks Limited and Dangote Noodles sales for each month is
payable to Dangote Industries Limited. Management fees for the financial year ended 31 December 2011 were
waived by DIL (2010 — N=593.9 million).
29. COMPARATIVE FIGURES
Certain balances in prior year have been reclassified where necessary for more meaningful comparison.
30. POST BALANCE SHEET EVENTS
There were no post balance sheet events that could have a material effect on the state of affairs of the Group as at
31 December 2011 and on the profit for the year ended on that date which have not been adequately provided for
or disclosed in these consolidated financial statements.
31. EARNINGS PER SHARE
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.

Consolidated Value Added Statement
2011 2010 2011 2010
N=’000 % N=’000 % N=’000 % N=’000 %
Turnover 66,281,326 67,600,954 38,679,844 42,695,383
Other income 381,526 1,035,558 259,472 561,131
Interest income 8,724 22,287 3,767 13,964
66,671,576 68,658,799 38,943,083 43,270,478
Less: Bought-in-materials
and services:
— Imported (48,933,339) (34,617,298) (27,319,652) (30,775,852)
— Local (7,805,698) (19,874,605) (5,314,758) (2,243,214)
Value Added 9,932,539 100 14,166,896 100 6,308,673 100 10,251,412 100
Applied as follows:
To pay employees
Salaries, wages and
other benefits 3,567,146 36 3,557,276 25 1,837,179 29 1,704,353 17
To pay providers of capital
Interest payable and similar
charges 2,208,313 22 2,306,458 16 1,761,187 28 1,572,941 15
To pay government
Taxation 612,317 6 727,111 5 553,449 9 538,787 5
To provide for enhancement
of assets and growth
Deferred taxation (893,322) (9) 1,462,199 10 (291,739) (5) 1,189,042 11
Depreciation 3,760,371 38 3,391,277 25 1,661,113 27 1,493,041 15
Profit and loss account 677,714 7 2,722,575 19 787,484 12 3,753,248 37
9,932,539 100 14,166,896 100 6,308,673 100 10,251,412 100
Value added represents the additional wealth the Company has been able to create by its own and its employees’
efforts. This statement shows the allocation of that wealth among employees, capital providers, government and that
retained for future creation of more wealth.

Consolidated Five-Year Financial Summary
31 DECEMBER 2011 2010 2009 2008 2007
N=’000 N=’000 N=’000 N=’000 N=’000
ASSETS/(LIABILITIES)
Fixed assets 44,443,322 41,229,708 35,238,199 32,449,283 27,357,655
Investments — — — 601,900 —
Deferred tax asset 422,323 — 328,067 — —
Net current liabilities (11,920,277) (9,845,390) (6,583,596) (7,839,343) (4,636,107)
32,945,368 31,384,318 28,982,670 25,211,840 22,721,548
Deferred tax liability (2,938,431) (3,409,430) — — —
Long-term liabilities (2,184,000) — — — (187,012)
Provision for liabilities and charges (977,497) (828,013) (559,926) (582,037) (389,402)
26,845,440 27,146,875 28,422,744 24,629,803 22,145,134
Share capital 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000
Share premium 18,116,249 18,116,249 18,116,249 18,116,249 18,116,249
Revenue reserve 5,823,879 6,327,597 7,573,899 3,812,016 1,369,458
Non-controlling interest 405,312 203,029 232,596 201,538 159,427
26,845,440 27,146,875 28,422,744 24,629,803 22,145,134
TURNOVER AND PROFIT
Turnover 66,281,326 67,600,954 61,388,064 47,927,300 42,153,272
Profit before taxation and
exceptional item 396,709 4,911,885 5,374,056 3,167,625 675,703
Taxation 281,005 (2,189,310) 187,024 (178,066) (114,144)
Non-controlling interest (202,283) 39,567 (30,348) (42,111) (36,849)
Profit transferred to revenue reserve 475,431 2,762,142 5,530,732 2,947,448 524,710
Per share data — 50k ordinary share
Earnings — Basic (kobo) 14 54 111 60 11
Net assets (Naira) 5 5 6 5 4
Company Five-Year Financial Summary
31 DECEMBER 2011 2010 2009 2008 2007
N=’000 N=’000 N=’000 N=’000 N=’000
ASSETS/(LIABILITIES)
Fixed assets 19,496,207 19,880,243 18,961,805 15,732,634 13,375,453
Investments 7,553,637 7,553,637 7,463,637 7,463,637 7,750,559
Deferred tax asset — — 328,067 — —
Net current assets 2,556,286 2,829,608 460,695 337,950 1,094,309
29,606,130 30,263,488 27,214,204 23,534,221 22,220,321
Deferred tax liability (2,844,534) (3,136,273) — — —
Provision for liabilities and charges (728,605) (638,061) (464,623) (376,362) (312,829)
26,032,991 26,489,154 26,749,581 23,157,859 21,907,492
Share capital 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000
Share premium 18,116,249 18,116,249 18,116,249 18,116,249 18,116,249
Revenue reserve 5,416,742 5,872,905 6,133,332 2,541,610 1,291,243
26,032,991 26,489,154 26,749,581 23,157,859 21,907,492
TURNOVER AND PROFIT
Turnover 38,679,844 42,695,383 41,839,919 30,109,610 31,303,845
Profit before taxation and
exceptional item 1,049,194 5,481,077 5,156,801 1,758,137 375,651
Taxation (261,710) (1,727,829) 203,060 (54,045) (85,316)
Retained profit transferred
to revenue reserve 787,484 3,753,248 5,359,861 1,704,092 290,335
Per share data — 50k ordinary share
Earnings — Basic (kobo) 16 75 107 34 6
Net assets (Naira) 5 5 5 5 4
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 number of issued and fully paid ordinary shares at the end of
each financial year.

Share Capital History/Unclaimed Dividend
Dangote Flour Mills Plc was quoted on the Nigerian Stock Exchange on 4th February, 2008.
The share capital history of the Company is as indicated below:
Date Authorised Share Capital Issued and Fully Paid Consideration
Value Shares Value Shares
04/02/2008 3,000,000,000 6,000,000,000 2,500,000,000 5,000,000,000 Cash
DANGOTE UNCLAIMED DIVIDEND AS AT 31ST DECEMBER, 2011
Dividend Declared Date Declared Dividend Paid Unpaid Balance
Dangote Dividend 1 900,000,000.00 16.12.2009 809,234,781.12 90,765,218.88
Dangote Dividend 2 1,350,000,000.00 16.12.2009 1,181,044,963.35 168,955,036.65
Dangote Dividend 3 2,250,000,000.00 25.10.2010 1,944,411,903.00 305,588,097.00
Dangote Dividend 4 900,000,000.00 17.10.2011 740,844,741.06 159,155,258.94
SHARE CAPITAL HISTORY

Dangote Flour Mill annual report 2011

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Dangote Flour Mill annual report 2011