Standard Presentation Guideline for

2017 Budget
 Content

Page
2017 Budget

I. Budget Summary highlights---------------------------------------------------------------------------------------3

II. Macroeconomic Overview----------------------- ----------------------------------------------------------------4-8
III. Market Overview & Volume assumptions---------------------------------------------------------------------9-17
IV. Material Input, Price & KPI Assumptions -----------------------------------------------------------------18-24
V. Financial Summary P&L & Schedules--------------------------------------------------------------------------25-36
VI. Manpower Schedule------------------------------------------------------------------------------------------------37-44
VII. O&M Overview (Sinoma/ Ayoki / Thermax )-----------------------------------------------------------------45-47
VIII. Transport Overview------------------------------------------------------------------------------------------------48-52
IX. Financial Summary-Balance Sheet & Cash flow--------------------------------------------------------------53-57
X. CAPEX-------------------------------------------------------------------------------------------------------------------59

2
2
 Budget Summary
SALES VOLUME:
 Budgeted 2016 volume growth of 60% compared to 2015 forecast growth of 35%. 2016 volume of 31Mt v 18Mt in 2015
& 13.9Mt in 2014.
 2016 marks a crucial year as we aim to sell 30Million tons of cement across Africa. Nigeria has a Budgeted output of
19Million tons including a 3Million tons export to West African countries of Niger, Ivory Coast, Togo & Ghana.
 For most of the Pan Africa projects, 2016 will be the first full year of operations.
SALES PRICE:
 Based on the current selling price levels, we see a convergence of selling price into 2 bands as follows
US$110-130/ton –Nigeria & West & Central Africa (baring Senegal US$75/t)
US$70-80/ton-South & East Africa.
 2015 Price reduction of $30/t in Nigeria is expected to help drive sales in 2016.
CASH COST:
 With a view to maintaining operating margins and remain profitable despite low prices, several initiatives have been
started to reduce cost/t in all operations. Key initiatives include the use of Own Trucks in Pan Africa operations and
sourcing material inputs at lower cost.
FINANCE COST:
 With a Budgeted CAPEX spent of N200B and dividend payment of N119B (@ N7/share) additional funding is required.
Thus, finance cost will be higher in 2016 compared to 2015.
The Budget is certainly a stretch but the management is highly motivated to achieve it & surpass it.
 XXXXXXXXXXXXXXX
3
 Budget 2017

Macroeconomic Overview.
 Macro Economic Perspective
Tanzanian Economy – At a Glance

Macroeconomic Highlights (2015)

▪ GDP (current): $44.9 Bn (2015A)

▪ GDP Per Capita : $865 (2015.)
▪ GNI Per Capita : PPP $910 (2015)
▪ Unemployment Rate: 10.30% (2015)
▪ Lending interest rate: 16.1% p.a
(2015)
▪ Inflation rate (CPI): 5.59% (2015)
▪ Reserves of FX : $4.39bn (2016 July.)
▪ External Debt: $129Mn(2016 est.)
▪ Public Debt: 39.3% of GDP (2015A)
▪ Trade: Exports- US$807mn and
Imports- US$1030mn (April 2016)
▪ Current account balance: - US$-
274.50mnn (April 2016)

Source: WEO/WB/IMF 2016

5
 Macro Economic Perspective
Demographic Trends

GDP Per Capita (US$) Population/ urbanization

growth
1200 16
70
14 57.6 60.8
1000 955 60
870 870 870 51.8 54.2
828 12 45.6 48.6
800 50 42.8
709 10
658 40
600 8 30
6 20
400
4 10
200
2 0
2008 2010 2012 2014 2016 2018 2020
0 0
2008 2010 2012 2014 2016 2018 2020
Population (Mn) Urban Population (Mn)
GDP Per Capita USD Real GDP Growth (%) IMF
Real GDP Growth (%)WB
Key Upsides Key Downsides
 Limited transport network
• Low labour costs  Cumbersome trade procedures
• Wealth of natural gas reserves  Wide-spread corruption constrains business operations
• Low level of legal risk
• Declining level of government intervention.
• Increasing economic openness
• Country benefiting from strong investment and low inflation.
7% GDP CAGR , 2.3% Population growth with 58% urbanization, cement per cap less than 80, outlook for cement
business looks positive
Source:Worlbank/UN Population Division 2011/Tradingeconomics/BMI 2016

6
 Macro Economic Perspective
Economy Drivers

Composition of GDP Natural Resources

Transport Finance Retail Manufacturing Construction

Agriculture • Gold, diamonds, tanzanite, coal,
Transport uranium and other minerals
9%
• Recently natural offshore gas deposits
Finance
have been discovered – but current
Agriculture
13% activity at standstill.
39%

Key Drivers
Retail
16%
 Recent natural gas discoveries has long term potential
 A liberalised trade regime and regional integration,
 Reforms to ease of doing business and a long-term stable
Manufacturing
7% democracy
Construction
17%  A broad number of planned infrastructure projects
 Demand for low cost housing

Source: Africaneconomicoutlook 2016

7
 Recent Economic & Political Development and Outlook

• Economy grew by 7% in 2015 ,mainly driven by the services, industry, construction, information and
communication sectors. It is projected to reach 7.2% during 2016 and 2017, boosted by major public
and private investments in infrastructure.

• There is a high growth rate of urbanisation with associated unemployment, pressure on

infrastructure and overstretched government capacity to manage urban development.

• The pressure to shift Government office from Dar es Salaam expected to boost cement demand
significantly/

• Fiscal position was healthy with an overall deficit of 3.4% of GDP in 2014/15. Similar prospects are
expected over the medium term.

• Successful and peaceful general elections in October 2015 transferred power to a new president
who has committed to prudent resource management, fighting corruption and pursuing inclusive
growth.

• However, some of the steps though well intentioned are taken in an arbitrary and high-handed
manner alienating the business community and investors.

Source:African Economic Outlook 2016

8
 Budget 2017

Market Overview, Volume & Price

Assumption
 Market Fundamentals
Competition Overview

• Also known as Tanzania Portland Cement. A subsidiary of Heidelberg Cement.

• Situated 25Km from Dar-es-Salaam. 1 integrated plant , recently modernised and
extended capacity to 1.20Mt/yr clinker plus an additional 0.8 million tonne grinding
capacity for imported clinker.
• Most profitable plant in Tanzania, being close to market and having access to gas.

• A subsidiary of Holcim before Holcim sold it’s assets to Afrisam (South Africa).
• Plant was commissioned in 1980 with upgrades of the cement mill and packing plant in 2010.
• Installed clinker capacity of 0.500 mtpa. Recently commissioned a new kiln (0.770Mta)
• Main market Northern Tanzania. Also exporting to Rwanda and Burundi.

• Mbeya Cement Company. Part of Lafarge.

• One integrated plant with 0.400 mtpa installed capacity.
• Intending to Upgrade its production capacity to 1.1mtpa
• Main market Southern Highlands and Dar es Salaam

• 1 integrated plant with 3Mt/yr in Mtwara region.

• Entered the market with aggressive pricing
• Main market Dar es Salaam
• However constrained by high cost to market

10
 Market Fundamentals
2016 Market & Capacity Share
Capacity
3.5
3
3
2.5
2
2
1.6
1.5 1.3
1 0.75
0.5 0.4 0.3
0.2
0
Dangote Simba Camel LH Twiga Rhino Nyati Others
Mtwara

Capacity 31 13 2.3 4.2 21 17 8 3,5

share, %
Market 3 13
18 15 6 32 7 6
share, %

Comments
 Total industry installed capacity is 9.54Mta
 Total domestic consumption in HY 2015 is 2m tons.
 In the coming year, Dangote is expected grow market share primarily at the cost of Twiga and Nyati

11
 Market Fundamentals
Capacity Locations
Diamond Cement – GS
0.15 mtpa
Arusha Cement – GS
0.08 mtpa

Moshi Cement – GS Simba (Tanga /Afrisam) - IP

0.15 mtpa 1.5 mtpa
Rhino (ARM) - IP
1 mtpa

Twiga (Heidelberg) - IP
2 mtpa
Size of regional markets Rhino (ARM) - GS
tpm 150,000 0.6 mtpa
160,000 Nyati (Lake Cement) - IP
140,000 0.5 mtpa
120,000 Camel Cement - GS
100,000
Tembo (Mbeya / LH) – IP
0.4mtpa 0.15 mtpa
80,000 Kisarawe (Lucky) – GS
46,000 40,500
60,000 28,800 30,000 0.15 mtpa
27,000
40,000 12,700 10,000 15,000
20,000
-
NE NE NE NE NE NE lk ar rt
ZO ZO ZO ZO ZO ZO Bu ib po
L E nz Ex
AM RA K RT
H H D Za Dangote Tanzania IP
LA NT LA UT LA
N
SA CE NO SO ER 3 mtpa
ES G H
R HI Mtwara Cement GS
DA RN
H E
Source : East Africa Cement Producers Association 0.3 mtpa
UT
SO

12 12
 Market Fundamentals
SWOT Analysis

SWOT Dangote Twiga Simba Tembo Rhino Nyati Camel Mtwara

Close to prime Consistent Many years of GS close to Close to prime
Modern plant Ow n transport
market quality market prime market market
Economies of Economies of Reputation in High flexibility in Close to prime
Ow n clinker
scale scale government decision making market
Low cost Strong in Ow n pow er Diversified
Strengths Ow n trucks
structure Northern Zone plant business
Limestone Oil marketing
Access to gas
quality company
Ample
limestone
High production Quality and Delays in •Small Small Small
Location Financial issues
cost quantity of LS decisions Production Production base production
Use of Limited High cost of •Small Weak •Lack of ow n Ramshackle
Importing clinker
expensive customer base production production base management transport plant
Expansion •Outdated Loss of market •Poor road to
Weaknesses Cost to market Old plant Poor reputation Importing clinker
limitation technology share Dar
Cash High cost
Location
management structure
Quality of
limestone
Export Cement Exports to Rw a Building of new Building of new Building of new
New Kiln New Kiln
and clinker Burundi 'capital' 'capital' 'capital'
Grinding station Entry in up Exports to Rw a Building of new
Opportunities
in Dar country markets Burundi 'capital'
Building of new Building of new Building of new Building of new 1
'capital' 'capital' 'capital' 'capital' 1
Government Entry of Entry of Entry of Entry of Entry of Entry of Entry of
Threats pressure Dangote Dangote Dangote Dangote Dangote Dangote Dangote
•Price Wars Competition in Reducing share •Poor location Clinker Imminent
affecting profit main market in core market (distance from availability Closure

13
 Market Fundamentals
Demand & Supply Balance

Market Demand & Supply

2,500

2,000

1,500
'000 Tons

1,000

500

-
2014A 2015A 2016F 2017F 2018F 2019F 2020F

Comments
1. In 2015, the poor state of the economy coupled with the new Government not getting into implementation
mode impacted cement demand. Consumption is estimated to grow by 4% in 2015.

2. Market Demand is expected to rise by about 9% in 2016 , mainly driven by the increased infrastructure spend,
with DCP maintaining its market share range at 67%. The initiatives to drive sales including pricing incentives
are expected to yield full result in 2016.

14
 Market Fundamentals
Aligning DCP volume & growth to Country Cement Growth Scenario

10.0 9.5 9.5 9.5 9.5 9.5

9.0
8.0
Cement demand (kt/ann.)

7.0 7.2
6.5
6.0 5.6 5.8
5.0 4.8 4.8 5.2
4.7
3.9 4.3
4.0 3.4
3.3 3.5
3.0 3.2
2.6
2.3
2.0 2.0
1.0
0.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Capacity Most Likely Optimistic Pessimistic

High CAGR – 12.4 % Base CAGR – 11.2% Low CAGR – 10.1 %

If the political climate is conducive and This is expected in the current If the action of the new
infrastructure projects are executed, scenario with the GDP growth being Government scare away fresh
double digit growth numbers are range bound between 6% and 7% in FDIs and business sentiments
feasible. the coming years are effected.

15
 Market Fundamentals
Selling Price Assumption (Excluding VAT)

2017FY 2016Sept
Cement SellingPrice unit/Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average YTD
EXFactoryPrice LC/ton 41,619 41,619 41,619 41,619 41,619 41,619 41,619 41,619 41,619 41,619 41,619 41,619 41,619

Rebates LC/Ton 952 952 952 952 952 952 952 952 952 952 952 952 952

Bonus LC/Ton 2,857 2,857 2,857 2,857 2,857 2,857 2,857 2,857 2,857 2,857 2,857 2,857 2,857
Net Price LC/Ton 37,810 37,810 37,810 37,810 37,810 37,810 37,810 37,810 37,810 37,810 37,810 37,810 37,810 -

Comments
1. Comment on factors considered in setting sales price, rebates and bonus.

2. Comment on competitors pricing behavior.

3. Comment on general price pattern in the country.

16
 Market Fundamentals
Transport Recovery (Excluding VAT)

2017 FY 2016 Sept

Transport Recovery unit/Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average YTD
AverageTransport
LC/Ton 2,857 2,857 2,857 2,857 2,857 2,857 2,857 2,857 2,857 2,857 2,857 2,857 2,857
Recovery Rate

Comments
1. Comment on factors considered in setting the average rate.

2. Comment on competitors pricing behavior- do competition deliver to customers? Comment on the model in
the market.

17
 Budget 2017

Material Input, Price & KPI Assumptions

 Key Material Prices/cost
Landed 2016 Sept YTD
C&F+Duty/ Transport
Material unit Cost at landed cost at
Vendor to plant
Plant plant

FX Rate LC:US$
AGO-Own Import US$/liter
AGO-Local vendor US$/liter
GAS US$/Mscf
LPFO-Own Import US$/liter
LPFO-Local vendor US$/liter
COAL-Local vendor US$/Ton
COAL-Own mine US$/Ton
COAL-Import US$/Ton
Clinker Purchase-3rd Party US$/Ton
Cement Purchase-3rd party US$/Ton
Cement Purchased-inter
company US$/Ton
Explosives US$/kg
Grinding aids US$/liter
Refractories US$/kg
Pozolona US$/Ton
Fly Ash US$/Ton
Iron Ore
Paper bag US$/Bag
Poly bag US$/Bag
Jumbo bag US$/Bag

19
 Plant Operating Parameters
Process Storage Capacities
2016Sept
unit Budget
Process Storage Capacity YTD
Crushed Limestone/Pozolona tons
RawMeal tons
Clinker tons
Cement Mill tons
Cement Silo tons
Coal Mill tons

Comments
1. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

2. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

20
 Plant Operating Parameters
Operating Hours Assumption
2016Sept
Operating Hours unit/Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
YTD
TPD(Tons
Crusher per day)
RawMeal TPD
Kiln TPD
Cement Mill TPD
Packing TPD
Coal Mill TPD

Comments
1. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

2. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

21
 Plant Operating Parameters
Performance Indicators Assumptions
2016Sept
unit/Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Performance Indicators YTD
C/Kratio c/k

Power Consumption
Kwh/tonne KK Kwh/t kk
Kwh/tonne CCGrind Kwh/t grind
Kwh/tonne CCPacked Kwh/t packed
Kwh/tonne CCGeneral Kwh/t general
Kwh/tonne CCCoal Mill Kwh/t mill
Kwh/tonne CCinSilo Kwh/t silo

Comments
1. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

2. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

22
 Plant Operating Parameters
Kiln Fuel Mix Assumption

2016Sept
Fuel Mix unit/Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
YTD
Kiln-Fuel Mix
Gas %
Coal-OwnMines %
Coal-Local vendor %
Coal-Imported %
LPFO %
AGO %

Comments
1. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

2. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Note: You can insert graphical chart instead

23
 Plant Operating Parameters
Power Fuel Mix Assumption

2016Sept
unit/Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Power Fuel Mix YTD
Gas %
Coal %
LPFO %
AGO %

Comments
1. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

2. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Note: You can insert graphical chart instead

24
 Budget 2017

Financial Summary
 Summary P&L 2017 Budget
Dangote Cement P'LC
2017 2016 2016 2016 2015 Comments
FY FY 9months 3months FY
Unit Budget Forecast Actual Forecast Actual
Domestic Sales kt 16,056 12,976
1. xxxxxxxxxxxxxxxxxxxxxxxx.
Export Sales kt 3,000 245
Total Sales Volume kt 19,056 13,221 - - 12,874 2. xxxxxxxxxxxxxxxxxxxxxxx
Production Volume kt
1 Gross Sales Revenue B'LC 514.2 390.4 358.7
Sales Rebate B'LC (49.6) (10.7) (7.0) 3. xxxxxxxxxxxxxxxxxxxxxxxxx
Transport Recovery B'LC - 14.1 19.9
Net Sales Revenue B'LC 464.6 393.8 - - 371.5
LC/t 24,381 29,786 #DIV/0! #DIV/0! 28,859
Other Income B'LC - 2.2 3.4

Variable cost B'LC 92.2 73.4 88.2

LC/t 4,837 5,550 #DIV/0! #DIV/0! 6,854
Production Fixed cost B'LC 27.7 20.6 19.3
LC/t 1,453 1,562 #DIV/0! #DIV/0! 1,497

S G &A B'LC 27.7 25.2 22.0

LC/t 1,455 1,909 #DIV/0! #DIV/0! 1,709
Domestic Haulage Cost B'LC 26.4 26 20
Export Haulage cost B'LC 20.0 0.4 -

Gross Operating Profit (EBITDA) B'LC 270.6 250.5 - - 225.1

LC/t 14,201 18,949 #DIV/0! #DIV/0! 17,487
Gross Operating Profit (Margin) % 58% 63% #DIV/0! #DIV/0! 60%
Depreciation B'LC 43.5 43.6 34.2
LC/t 2,283 3,299 #DIV/0! #DIV/0! 2,658
Operating Profit (EBIT) B'LC 227.1 206.9 - - 190.9
Operating Profit (Margin) % 49% 52% #DIV/0! #DIV/0! 51%
2 Financial Income(-) B'LC (13) (49) (43)
Financial Expense(+) B'LC 31.1 26.5 20.4
Profit/(Loss) Before Taxation B'LC 208.6 229.1 - - 213.0
Tax (Credit)/Debit B'LC 16.7 15.2 27.2
Profit /(Loss) After Taxation B'LC 191.9 214.0 - - 185.8

26
 Summary Monthly P&L 2017 Budget
Dangote Cement P'LC
2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec FY
Unit Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual
Domestic Sales kt 1,234 1,234 1,234 1,234 1,234 1,234 1,234 1,234 1,234 1,234 1,234 1,234 14,808
Export Sales kt 45 45 45 45 45 45 45 45 45 45 45 45 540
Total Sales Volume kt 1,279 1,279 1,279 1,279 1,279 1,279 1,279 1,279 1,279 1,279 1,279 1,279 15,348
Production Volume kt
Gross Sales Revenue B'LC 45.0 45.0 45.0 45.0 45.0 45.0 45.0 45.0 45.0 45.0 45.0 45.0 540.0
Sales Rebate B'LC (2.0) (2.0) (2.0) (2.0) (2.0) (2.0) (2.0) (2.0) (2.0) (2.0) (2.0) (2.0) (24.0)
Transport Recovery B'LC 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 12.0
Net Sales Revenue B'LC 44.0 44.0 44.0 44.0 44.0 44.0 44.0 44.0 44.0 44.0 44.0 44.0 528.0
LC/t 35,184 34,402 34,402 34,402 34,402 34,402 34,402 34,402 34,402 34,402 34,402 34,402 34,402
Other Income B'LC 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 3.6

Variable cost B'LC 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 120.0
LC/t 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819
Production Fixed cost B'LC 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 24.0
LC/t 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564

S G &A B'LC 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 24.0
LC/t 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564
Domestic Haulage Cost B'LC 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 15.6
Export Haulage cost B'LC 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 6.0

Gross Operating Profit (EBITDA) B'LC 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5 342.0
LC/t 22,283 22,283 22,283 22,283 22,283 22,283 22,283 22,283 22,283 22,283 22,283 22,283 22,283
Gross Operating Profit (Margin) % 64% 64% 64% 64% 64% 64% 64% 64% 64% 64% 64% 64% 64%
Depreciation B'LC 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 24.0
LC/t 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564
Operating Profit (EBIT) B'LC 26.5 26.5 26.5 26.5 26.5 26.5 26.5 26.5 26.5 26.5 26.5 26.5 318.0
Operating Profit (Margin) % 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%
Financial Income(-) B'LC (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (4)
Financial Expense(+) B'LC 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 30.0
Profit/(Loss) Before Taxation B'LC 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 24.3 291.6
Tax (Credit)/Debit B'LC 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 28.8
Profit /(Loss) After Taxation B'LC 21.9 21.9 21.9 21.9 21.9 21.9 21.9 21.9 21.9 21.9 21.9 21.9 262.8

27
 Budget 2017

Variable Cost Schedule

 Variable cost Budget-Fuel Cost (Kiln & Power Plant)

FY 2016FY
unit Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
KilnFuel Cost Budget forecast
Gas for Clinker Production LC'M 0 0
LPFO for Clinker Production LC'M 0 0
Diesel for Clinker Production LC'M 0 0
Coal for Clinker Production LC'M 0 0
Gas for RawMeal Heating LC'M 0 0
Lpfo for RawMeal Heating LC'M 0 0
Total Kiln Fuel LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0

FY 2016FY
unit Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Power Variable cost Budget forecast
Gas for Power Generation LC'M 0 0
LPFO for Power Generation LC'M 0 0
AGO for Power Generation LC'M 0 0
Coal for Power Generation LC'M 0 0
Purchased Power LC'M 0 0
Total Power LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0

29
 Variable cost Budget-Other Variable Cost
FY 2016FY
unit Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Other Variable Cost Budget forecast
Overburden Removal LC'M 0 0
Gypsum LC'M 0 0
Refractories LC'M 0 0
Royalties LC'M 0 0
Explosives & Aid LC'M 0 0
Sacks - Packaging Matrls LC'M 0 0
Limestone Purchased LC'M 0 0
Laterite/Bottom Ash/ Bauxite Purchased
LC'M 0 0
Pumice Purchased LC'M 0 0
Diesel Costs - Mines LC'M 0 0
Diesel Costs - Development LC'M 0 0
Duty Demurrage, Shipping &
LC'M
Clearing not inventorised 0 0
Grinding Media/Plate/Aid LC'M 0 0
Diesel Costs - Production LC'M 0 0
Other Consumables LC'M 0 0
Other Logistics expenses -not inventorised
LC'M 0 0
Clinker Purcahsed(+)/sold(-) LC'M 0 0
Stock Movements LC'M 0 0
Fly Ash Purchase cost LC'M 0 0
Total Other Variable Costs LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0

30
 Budget 2017

Production Fixed Cost Schedule

 Production Fixed Cost

FY 2016FY
Production Fixed cost unit Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Budget forecast
Direct wages (Production &
LC'M - - - - - - - - - - - - - -
Maintenance)
Maintenance Supplies LC'M - - - - - - - - - - - - - -
O & M Technical Agreement LC'M - - - - - - - - - - - - - -
Contract Maintenance LC'M - - - - - - - - - - - - - -
Total LC'M - - - - - - - - - - - - - -

32
Budget 2017

SG&A Schedule
 Plant General Expenses
FY 2016 FY
Plant General unit Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Budget forecast
Manpower Costs LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Staff Welfare LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Site Restoration Cost LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Staff Sports Club Cost LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Staff Uniform & Safety Wears LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Estate Costs LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Insurance - Plant LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Staff School Costs LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Medical Expenses LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Training Costs LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Local Travel LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Overseas Travel LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Communication LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Vehicle Maintenance LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Stationery & Printing LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Community Development LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Contracting LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Subscriptions LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Fuel ( Petrol & Diesel) LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Property Maintenance LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Rent & Rates ( Local Govt Taxes) LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Security Expenses LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Office Cleanings & General Expenses LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Expenses - Electricity LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Others LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Costs LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0

34
 Selling & Distribution Expenses

FY 2016 FY
unit Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Selling & Marketing Budget forecast
Manpower Costs LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Product Advertising LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Depot & Region LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Product Promotion LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Provision for bad debts LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other S&D cost LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Depot cost(rent &offloading) LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
DIL Management Fee &Brand Royalty LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Corporate Branding LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Coporate center Budget LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Costs LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0

35
 General Administration Expenses

FY 2016 FY
unit Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Generial Admin Budget forecast
Manpower Costs LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Legal Cost LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Audit Fees LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Professional Fees LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Consultancy Fees LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Stock Exchange Fees & Expenses LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Recruitment Costs LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Directors Fees LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Annual Gen Meeting Expenses LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Bank & other related Charges LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Audit Expense LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
African Project expenses LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Expenses LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Directors expense LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Costs LC'M 0 0 0 0 0 0 0 0 0 0 0 0 0 0

36
Budget 2017

Manpower
 Budget Summary

Comment on:

Local Head count & cost:

 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Expat count & cost:
 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Recruitment plans & Organizational chart:
 Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Other HR issues:
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

38
 Manpower Cost Summary
2017 Budget 2016 Actual Sept YTD
Manpower Summary Number of Staff LC'000 LC'000 LC'000 LC'000 No of Staff
Managerial
Senior Junior Total Staff Total Wage
(Level 12 Wages Pension
Staff Staff nos Bill
above)
Production Direct Wages 0 0 0 0 0 0 0 0 0
Maintenance Direct Wages 0 0 0 0 0 0 0 0 0
Power Plant Direct Wages 0 0 0 0 0 0 0 0 0
Sales & Marketing 0 0 0 0 0 0 0 0 0
Plant General -wages 0 0 0 0 0 0 0 0 0
General Admin-wages 0 0 0 0 0 0 0 0 0
Total -Operations Wages 0 0 0 0 0 0 0 0 0

Transport Operations Wages 0 0 0 0 0 0 0 0 0

Total Wages & Salaries 0 0 0 0 0 0 0 0 0

Comments
1. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

2. Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

3. Comment on number of expat and initiatives been taken to engage locals.

39
 Manpower
Production & Maintenance Cost
Salaries & Wages by Function 2017 Budget 2016 Actual Sept YTD
Comments
Production & Mainteance Number of Staff LC'000 LC'000 LC'000 LC'000 No of Staff
Managerial
Senior Junior Total Staff Total Wage Total Wage 1. Basis for additional manpower
Production Direct Wages (Level 12 Wages Pension nos
Staff Staff nos Bill Bill
above)
Cement Mill 0 0 2. Basis for cost increase / decrease
Crusher 0 0
Kiln 0 0 3. xxxxxxxxxxxxxxxxxxxxxxxxx
Mines 0 0
Packing Plant 0 0
Quality Assurance 0 0
Rawmill 0 0
Production 0 0
Mix Storage 0 0
Expart 0 0
Contract staff 0 0
Total Production 0 0 0 0 0 0 0 0 0
Maintenance Direct Wages
Civil 0 0
Electirical 0 0
Instrumentation 0 0
Workshop/Utility 0 0
Central Maintenance 0 0
Machenical Maintenance 0 0
Expat 0 0
Contract staff 0 0
Total Maintenance 0 0 0 0 0 0 0 0
Power Plant Direct Wages 0 0
Total Direct Wages 0 0 0 0 0 0 0 0 0

40
 Manpower
Sales & Marketing
2017 Budget 2016 Actual Sept YTD
Number of Staff LC'000 LC'000 LC'000 LC'000 No of Staff
Managerial
Senior Junior Total Staff Total Wage Total Wage
Sales & Marketing (Level 12 Wages Pension nos
Staff Staff nos Bill Bill
above)
Sales & Marketing 0 0
Logistics & Distribution
0 0
(excluding Transport)
Expart 0 0
Total Sales & Marketing 0 0 0 0 0 0 0 0 0

Comments
1. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

2. Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

3. Comment on number of expat and initiatives been taken to engage locals.

41
 Manpower
Transport Operations
2017 Budget 2016 Actual Sept YTD
Number of Staff LC'000 LC'000 LC'000 LC'000 No of Staff
Managerial
Senior Junior Total Staff Total Wage Total Wage
Transport Operations (Level 12 Wages Pension nos
Staff Staff nos Bill Bill
above)
Truck Drivers 0 0
Fleet Officers 0 0
Transport Admin
Expart 0 0
Total Sales & Marketing 0 0 0 0 0 0 0 0 0

Comments
1. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

2. Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

3. Comment on number of expat and initiatives been taken to engage locals.

42
 Manpower
General Admin
Salaries & Wages by Function 2017 Budget 2016 Actual Sept YTD
Administration Wage Cost Number of Staff LC'000 LC'000 LC'000 LC'000 No of Staff
Managerial
Senior Junior Total Staff Total Wage Total Wage
Plant General -wages (Level 12 Wages Pension nos
Staff Staff nos Bill Bill
above)
Purchase 0 0
Stores 0 0
Methods 0 0
Expat 0 0
Total Plant General 0 0 0 0 0 0 0 0 0
General Admin-wages
Admin 0 0
Estate 0 0
Finance 0 0
HCM 0 0
Infotech 0 0
Medical 0 0
Security 0 0
Medical 0 0
Time Management 0 0
Training and developement 0 0
Safety Healt and Environmental 0 0
Expart 0 0
Total General Admin 0 0 0 0 0 0 0 0 0
Total Admin wage cost 0 0 0 0 0 0 0 0 0

43
 Manpower
General Admin

Comments
1. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

2. Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

3. Comment on number of expat and initiatives been taken to engage locals.

44
 Budget 2017

O&M PLAN (SINOMA / AYOKI / THERMAX etc.)

 O&M Plan-Cement Ops

Provide schedule of O&M details-Manpower count, services charges-off

shore & onshore, medicals, Tax etc.

46
 O&M Plan-Power Plant

Provide schedule of O&M details-Manpower count, services charges-off

shore & onshore, medicals, Tax etc.

47
 Budget 2017

Transport Report
 Overview of Transport Operations

Comment on:

Truck management process

Number of Operational Trucks

Challenges

% of volumes to be delivered

% of inbound materials to be hauled.

Basis for Transport recovery compared to market rate.

49
 Transport P&L-Cement Haulage Operations
2017 Cost per 2016 FY Cost per 2016 Sept Cost per
FY REPORT
Budget 1000KM Forecast 1000KM YTD Actual 1000KM

Kilometer covered - Cement 000' km - - -

Tonnage Moved-Cement 000' tons 8,400 8,400 -
Number of Operational Trucks 2,700 32,400 -
Cement Trips 186,667 186,667 -
MNGN NAIRA MNGN NAIRA MNGN NAIRA
Revenue (Cement):
Direct Delivery to Customers 10,800 10,800 -
Delivered to Depots 14,400 14,400 -
25,200 25,200 -
Expenses (Cement):
AGO 20,160 #DIV/0! 20,160 #DIV/0! - #DIV/0!
Spares 2,771 #DIV/0! - #DIV/0! - #DIV/0!
Tyres 3,240 #DIV/0! 3,240 #DIV/0! - #DIV/0!
Tyre Management Fees 120 #DIV/0! 120 #DIV/0! - #DIV/0!
Maintenance - #DIV/0! - #DIV/0! - #DIV/0!
Waybill 1,960 #DIV/0! 1,867 #DIV/0! - #DIV/0!
Wages & Salaries - #DIV/0! - #DIV/0! - #DIV/0!
General Admin Expenses - #DIV/0! - #DIV/0! - #DIV/0!
Recovery On Inbound Material - #DIV/0! (200) #DIV/0! - #DIV/0!
28,251 #DIV/0! 25,187 #DIV/0! - #DIV/0!

Profit / (Loss) on Cash Basis (3,051) 13 -

Depreciation - Cement Trucks - #DIV/0! - #DIV/0! - #DIV/0!

Depreciation - Other Transport Assets - - #DIV/0! -
Depreciation - Total - #DIV/0! - #DIV/0! - #DIV/0!

Profit/(Loss) on Total Cost Basis - #DIV/0! - #DIV/0! - #DIV/0!

50
 Transport P&L-Cement Haulage Operations key KPI’s
CEMENT KPI'S
2017 2016 SFY 2016 Sept
Budget Forecast YTD Actual
Average KM per trip NGN NGN NGN
CASH BASIS
Cash Cost per/ km #DIV/0! #DIV/0! #DIV/0!
Cash Cost per/ Tonne 3,363 2,998 #DIV/0!
Cash Cost per Tonne/ KM #DIV/0! #DIV/0! #DIV/0!
Cash Cost / trip 151,344 134,929 #DIV/0!
Revenue / trip 135,000 135,000 #DIV/0!
WN / trip

2017 2016 SFY 2016 Sept

TOTAL COST BASIS ( WITH DEPRECIATION) Budget Forecast YTD Actual

Total Cost per/ km #DIV/0! #DIV/0! #DIV/0!

Total Cost per/ Tonne 3,363 2,998 #DIV/0!
Total Cost per Tonne/ KM #DIV/0! #DIV/0! #DIV/0!
Total Cost per Trip 151,344 134,929 #DIV/0!

Comments
1. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

2. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxx

51
 Transport P&L -Inbound Material Operations

2017 Cost per 2016 FY Cost per 2016 Sept Cost per
FY REPORT
Budget 1000KM Forecast 1000KM YTD Actual 1000KM

Kilometer covered - Inbound Material 000' km - - -

Tonnage Moved-Inbound Materials 000' tons 8,400 8,400 -
Number of Operational Trucks 2,700 32,400 -
Trips 186,667 186,667 -
Expenses (Inbound Material):
AGO 20,160 #DIV/0! 20,160 #DIV/0! - #DIV/0!
Spares 2,771 #DIV/0! - #DIV/0! - #DIV/0!
Tyres 3,240 #DIV/0! 3,240 #DIV/0! - #DIV/0!
Tyre Management Fees 120 #DIV/0! 120 #DIV/0! - #DIV/0!
Maintenance - #DIV/0! - #DIV/0! - #DIV/0!
Waybill 1,960 #DIV/0! 1,867 #DIV/0! - #DIV/0!
Wages & Salaries - #DIV/0! - #DIV/0! - #DIV/0!
General Admin Expenses - #DIV/0! - #DIV/0! - #DIV/0!
28,251 #DIV/0! 25,187 #DIV/0! - #DIV/0!

Profit / (Loss) on Cash Basis (3,051) 13 -

Depreciation - Inbound Trucks - #DIV/0! - #DIV/0! - #DIV/0!

Depreciation - Total - #DIV/0! - #DIV/0! - #DIV/0!

Profit/(Loss) on Total Cost Basis - #DIV/0! - #DIV/0! - #DIV/0!

52
 Budget 2017

Statement of Financial Position & Cash flow

 Statement of Financial Position

31st Dec 31st Dec 2016 31st Dec 2015 Comments

2017 Budget Forecast Actual
NGNB NGNB NGNB  Strong balance sheet with Gross Gearing at
44% & Net Gearing at 32%
PPE & Intangibles & 1,057 936.4 847.6
Capital Advances
 Net Debt to EBITDA 0.69
Inventories 53.1 52.2 42.7
Cash & Bank 92 48.9 20.6
Other Current Assets 93.3 90.2 73.8
TOTAL ASSETS 1,296 1,127 985

Other Liabilities: Non 59.2 38.6 27.9

Current

Debt: Non Current 215.2 127.2 131.9

Debt: Current 116.1 133.3 110.6
Trade & Other Payables 115 118 91.5
Customer Advances 18 15 9.4
Other Liabilities: Current 24.0 26.8 21.4

TOTAL LIABILITIES 548.3 460.5 392.8

NET ASSETS 747.8 667.3 591.9

54
 Monthly Statement of Financial Position
2017 Budget
31st Jan 2017 29th Feb 2017 31st Mar 2017 30th April 2017 31st May 2017 30th Jun 2017 31st Jul 2017 31st Aug 2017 30th Sept 2017 31st Oct 2017 30th Nov 2017 31st Dec 2017
N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

Assets
Non current assets 939,207 933,453 927,567 921,633 925,681 934,730 948,545 973,357 998,170 1,022,981 1,047,794 1,072,606

Current Assets
Inventories 53,118 53,118 53,118 53,118 53,118 53,118 53,118 53,118 53,118 53,118 53,118 53,118
Trade and other receivables 11,744 11,944 12,144 12,344 12,544 12,744 12,944 13,144 13,344 13,544 13,744 13,944
Prepaid expenses and other current assets 60,426 60,326 60,226 60,126 60,026 59,926 59,826 59,726 59,626 59,526 59,426 59,326
Cash and cash equivalents 67,987 85,341 94,525 60,659 75,603 127,987 36,314 30,913 21,784 15,266 11,930 5,903
193,275 210,729 220,013 186,247 201,291 253,775 162,202 156,901 147,872 141,454 138,218 132,291

Total Assets 1,132,482 1,144,182 1,147,580 1,107,880 1,126,972 1,188,505 1,110,747 1,130,259 1,146,042 1,164,435 1,186,012 1,204,897

Equity
Total Equity 664,141 678,447 694,856 575,901 595,230 613,274 632,747 652,259 669,553 688,352 709,929 730,324
Liabilities
Deferred tax liabilities 24,504 24,504 24,504 24,504 24,504 24,504 24,504 24,504 24,504 24,504 24,504 24,504
Financial liabilities 124,844 124,844 123,333 202,927 202,927 251,417 251,011 251,011 249,500 249,094 249,094 247,584
Long term provisions and other charges 3,283 3,283 3,283 3,283 3,283 3,283 3,283 3,283 3,283 3,283 3,283 3,283
Retirement benefits obligation 3,992 3,992 3,992 3,992 3,992 3,992 3,992 3,992 3,992 3,992 3,992 3,992
Deferred revenue 975 975 975 975 975 975 975 975 975 975 975 975
Long term payables 24,442 24,442 24,442 24,442 24,442 24,442 24,442 24,442 24,442 24,442 24,442 24,442

Total non-current liabilities 182,040 182,040 180,529 260,123 260,123 308,613 308,207 308,207 306,696 306,290 306,290 304,780
Current Liabilities
Trade and other payables 127,597 127,597 127,597 127,597 127,597 127,597 127,597 127,597 127,597 127,597 127,597 127,597
Retirement benefits obligation - -
Current income tax payable 1,289 1,289 1,589 1,589 1,589 1,589 1,589 1,589 1,589 1,589 1,589 1,589
Financial liabilities 132,877 130,271 118,471 118,132 117,895 112,895 16,069 16,069 16,069 16,069 16,069 16,069
Other current liabilities 24,537 24,537 24,537 24,537 24,537 24,537 24,537 24,537 24,537 24,537 24,537 24,537
286,300 283,694 272,194 271,855 271,618 266,618 169,792 169,792 169,792 169,792 169,792 169,792
Total liabilities 468,340 465,734 452,724 531,979 531,742 575,231 477,999 477,999 476,489 476,083 476,083 474,572
Total equity and liabilities 1,132,482 1,144,182 1,147,580 1,107,880 1,126,972 1,188,505 1,110,747 1,130,259 1,146,042 1,164,435 1,186,012 1,204,897

55
 Cash flow & Net Debt.

Cash Debt Net Debt

NGNB NGNB NGNB
As at 31st December 2016 Forecast 48.9 (261.2) (212.3)
Cash Generated from Operations 346.9 - 346.9
before working capital changes
Change in working capital (13.6) - (13.6)
Income tax paid (2) - (2)
Net Capital expenditure (200) - (200)

Net interest payments (41.0) - (41.0)

Net loans obtained from parent 70 (70)
company & banks
Dividend paid (119) - (119)
Other cash & non cash movements 1.8 - 1.8
(net)
As at 31st December 2017 Budget 92 (331.3) (239)

56
 Monthly Statement of Cash flow
2017 Budget
Amounts in LC'000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash FlowfromOperations (EBITDA) 29,882 24,386 26,608 28,190 30,277 29,031 30,045 29,689 27,379 28,914 31,818 30,723

Changes in working capital:

(100) (300) (300) (300) (300) (300) (300) (300) (300) (300) (300) (300)
Gratuity 0 0 0 0 0 0 0 0 0 0
Income tax paid - (1,822) (1,419) (1,542) (1,540) (1,706) (1,565) (1,599) (1,647) (1,499) (1,641) (1,832)

Net cash provided by operating activities 29,782 22,264 24,889 26,348 28,438 27,025 28,179 27,790 25,431 27,116 29,877 28,591

Investing activities
Interest received - - - - - - - - - - - -
Additions to intangible assets - - - - - - - - - - - -
Acquisition of property, plant and equipment - - - - (10,000) (15,000) (20,000) (31,000) (31,000) (31,000) (31,000) (31,000)
Changes in non-current prepayment - - - - - - - - - - - -
Proceeds fromdisposal of property, plant and equipment
Suppliers Credit -
Net cash used in investing activities - - - - (10,000) (15,000) (20,000) (31,000) (31,000) (31,000) (31,000) (31,000)

Financing activities
Interest Paid (2,986) (2,962) (2,891) (3,569) (3,558) (3,735) (3,213) (2,684) (2,672) (2,661) (2,655) (2,644)
Dividend paid 0 0 0 (136,320)
Loan obtained 0 0 - 80,000 - 50,000 - - - - - -
Loan repaid (406) (2,606) (13,311) (745) (237) (1,511) (97,232) - (1,511) (406) - (1,511)
Net cash provided by financing activities (3,392) (5,568) (16,201) (60,634) (3,795) 44,755 (100,445) (2,684) (4,182) (3,067) (2,655) (4,154)

(Decrease)/increase in cash and cash equivalent 26,390 16,696 8,687 (34,286) 14,643 56,780 (92,265) (5,894) (9,751) (6,951) (3,778) (6,563)

Effects of exchange rate changes on the balance of cash held in

foreign currencies

Cash and cash equivalents at beginning of year 37,845 64,235 80,931 89,618 55,332 69,975 126,754 34,489 28,595 18,845 11,893 8,115
Cash and cash equivalents at quarter end 64,235 80,931 89,618 55,332 69,975 126,754 34,489 28,595 18,845 11,893 8,115 1,552

57
 Budget 2017

CAPITAL EXPENDITURE
 CAPEX

CAPEX SUMMARY Q1 Q2 Q3 Q4 Total

LC'M LC'M LC'M LC'M LC'M
Land & Buildings 0.00 0.00 0.00 0.00 -
Plant & Machinery 0.00 0.00 0.00 0.00 -
Motor Vehicles 0.00 0.00 0.00 0.00 -
Trucks 0.00 0.00 0.00 0.00 -
Furn Fttg & Equip 0.00 0.00 0.00 0.00 -
Comp Hardware & IT Equipt 0.00 0.00 0.00 0.00 -
Total Capex Cost - - - - -

Comments
1. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

2. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

59