dangote cement annual report 2010
TRANSCRIPT
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1C o n t e n t s
Notice of 2nd Annual General Meeting 7
Professional Advisers and Other Corporate Information 8
Results at a Glance 9
Chairmans Statement 10-13
The Board 14-15
Report of the Directors 16-20
Report of the Audit Committee to Shareholders 21
Report of the Independent Auditors 22
Statement of Significant Accounting Polices 23-25
Profit and Loss Account 26
Balance Sheet 27
Statements of Cashflows 28
Notes to the Financial Statements 29-41
Statement of Value Added 42
Financial Summary 43
Share Capital History 44
E-Dividend Mandate 49
Proxy Form 51
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C o n t e n t s
Notice of 2nd Annual General Meeting 7
Professional Advisers and Other Corporate Information 8
Results at a Glance 9
Chairmans Statement 10-13
The Board 14-15
Report of the Directors 16-20
Report of the Audit Committee to Shareholders 21
Report of the Independent Auditors 22
Statement of Significant Accounting Polices 23-25
Profit and Loss Account 26
Balance Sheet 27
Statements of Cashflows 28
Notes to the Financial Statements 29-41
Statement of Value Added 42
Financial Summary 43
Share Capital History 44
E-Dividend Mandate 49
Proxy Form 51
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Dangote Cement Emerges Nigeria's Largest Quoted Company
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Operating Facilities Cement Plants
OBAJANA 10M MTPA* GBOKO 4M MTPA* IBESE 6M MTPA*
CEMENT PLANTS
3
* by December 2011
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Overview of Dangote Cement
PROFILE
KEY BUSINESSLINES
CORE VALUES
Cement Production Plants: Obajana, Gboko, Ibese (Project)
Cement Terminals: Lagos, Port Harcourt
Customer Service
Entrepreneurship
Excellence
Leadership
GEOGRAPHICALPRESENCE
Nigeria: Kogi, Benue, Ogun, Lagos, Rivers
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Strategy
Depots
LogisticsSALES, DISTRIBUTION
AND PRICING
Sales, Distribution and Pricing Strategy
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Notice of 2nd Annual General Meeting
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t h a t t h e s h a r e h o l d e r s h e r e b y
approve nominal transfer of all of Dangote
Industries Limiteds African (non-Nigerian)
Cement interests to Dangote Cement Plc
and that Dangote Industries Limited be
reimbursed for all payments made to date
(21/3/2011);
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RESULTS AT A GLANCE
31 DECEMBER 2010
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Chairman's StatementBuilding a solid foundation for the future
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Chairman's Statement
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Chairman's Statement
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Chairman's Statement
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THE BOARD
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2 3 4
5 6 7
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Report of the Directors
2010 N000
2009 N000
Turnover 202,565,698 189,620,975
item
101,334,468 63,775,871
Taxation 5,270,941 (2,383,641) Profit after taxation 106,605,409 61,392,230 Extraordinary item (1,282,980) - Profit after taxation and extraordinary item
105,322,429 61,392,230
Profit before taxation and extraordinary
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S/N NAMES NUMBER OF SHARES MARCH 2011 2010
1. Aliko Dangote 25,129,670 25,129,670 2. Sani Dangote NIL NIL 3. DVG Edwin NIL NIL 4. Olakunle Alake 3,333,366 3,333,366 5. Joseph Makoju 10,000 10,000 6. Festus Odimegwu NIL NIL 7. Olusegun Olusanya 14,830 14,830 8. Abdu Dantata NIL NIL
Name Address Holdings %
Dangote Industries Ltd.
1, Alfred Rewane Road, Falomo, Ikoyi, Lagos.
14,699,247,232
94.87
Report of the Directors
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Range No. of
Holdings
% Units %
1 - 1,000 30,362 73.64 11,178,777 0.071,001 - 5,000 7,969 19.33 16,875,886 0.115,001 - 10,000 1,316 3.19 9,557,131 0.0610,001- 50,000 1,128 2.74 23,828,432 0.1550,001- 100,000 190 0.46 13,667,171 0.09
100,001 - 500,000 176 0.43 35,968,431 0.23500,001 -
1,000,000
30
3.07
21,783,284
0.14
1,000,001 -10,000,000
43
0.10
138,006,597 0.89
10,000,001 - 100,000,000
16
0.04
523,906,727
3.38
100,000,001 - 1,000,000,000
1
0.00
328,520,922 2.12
1,000,000,001 - 50,000,000,000
1
0.00
14,370,726,310
92.75
41,232 100 15,494,019,668 100
Report of the DirectorsD
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Report of the Directors
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Report of the Directors
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Report of the Audit Committee to Shareholders
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Report of the Independent Auditors
Chartered AccountantsLagos, Nigeria23 March 2011
Chartered AccountantsKano, Nigeria23 March 2011
Deloitte.Akintola Williams Deloitte235 Ikorodu Road, IlupejuP.O. Box 965, MarinaLagosNigeria
Tel: +234 1 271 7800Fax: +234 1 271 7800www.deloitte.com/ng
5th Floor, African Alliance BuildingF1, Sani Abacha WayP.O. Box 6500Kano
Tel: 064-645400, 646447Fax: 064-200888E-mail: [email protected]
AHMED ZAKARI & CO.
CHARTERED ACCOUNTANTS
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Statement of Significant Accounting PoliciesYear Ended 31 December 2010
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Statement of Significant Accounting PoliciesYear Ended 31 December 2010
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Statement of Significant Accounting PoliciesYear Ended 31 December 2010
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PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2010
CompanyNotes Group Company
2010 2009 2009N'000 N'000 N'000
Turnover 202,565,6982
189,620,975 129,797,087
Cost of sales (84,916,717)28
(105,872,433) (69,136,138)
Gross profit 117,648,981
83,748,542 60,660,949
Administrative expenses (14,351,638)
(17,306,046) (10,096,157)
Selling and distribution expenses (407,809)
(116,426) (116,426)
Operating profit 102,889,534
66,326,070 50,448,366
Other income 526,3963
972,877 902,187
Interest received 870,553
2,520,128 2,330,862
Interest and similar charges (2,952,015)
(6,043,204) (4,171,378)
Profit before taxation and extraordinary item 101,334,4684
63,775,871 49,510,037
Taxation 5,270,9415 (2,383,641) (2,258,711)
Profit after taxation 106,605,409 61,392,230 47,251,326
Extraordinary item (1,282,980)6 - -
105,322,42920 61,392,230 47,251,326
Earning per share (Naira) - Basic 733 123 95
Profit after taxation and extraordinary itemtransferred to revenue reserve
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2010 2009 2009
N'000 N'000 N'000
285,442,9827
186,393,346 142,388,500
508
99,050 16,659,134
14,865,2789
13,374,105 10,251,365
11,378,17410
6,825,714 6,038,627
44,027,24611
39,093,319 35,267,394
25,050,09927
25,807,836 24,904,260
10,515,72912
9,452,915 9,452,915
10,760,935
10,733,061 62,402,202
116,597,461
105,286,950 148,316,763
36,440
3,272,082 3,272,082
5,163,376
4,714,983 2,922,304
36,874,33613
30,965,912 18,473,160
6,988,81427 9,823,506 7,927,117
37,600,99214 14,789,269 14,789,269
3,196,8235 4,347,342 3,068,077
89,860,781 67,913,094 50,452,009
26,736,680 37,373,856 97,864,754
312,179,712 223,866,252 200,568,846
(1,924,400)15 (9,474,955) (8,486,075)
(98,251,413)14 (49,619,797) (49,619,797)
(494,684)16 (981,244) (350,740)
211,509,215 163,790,255 142,112,234
7,745,68517 500,000 500,000
42,430,00018 42,430,000 42,430,000
-19 985,805 985,805
- 15,556,084 -
161,333,53020 98,196,429 98,196,429
211,509,215 157,668,318 142,112,234
FIXED ASSETS
Tangible assets
Investments
CURRENT ASSETS
Stocks
Trade debtors
Other debtors and prepayments
Due from related companies
Short term deposits
Cash and bank balances
CREDITORS: Amounts falling
due within one year
Bank overdraft
Trade creditors
Other creditors and accruals
Due to related companies
Short term debts
Taxation
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
Deferred taxation
CREDITORS: Amounts falling due
after more than one year
Long term debts
PROVISION FOR LIABILITIES AND CHARGES
Staff gratuity
CAPITAL AND RESERVES
Share capital
Share premium
Revaluation reserve
Capital reserve
Revenue reserve
Shareholders' funds
Non-controlling interest -21 6,121,937 -
211,509,215 163,790,255 142,112,234
))
)
Olakunle Alake ) Directors
)
)
)
D V G Edwin ))
The financial statements on pages 23 to 43 were approved by
the Board of Directors on 23 March 2011 and signed on its
behalf by:
AS AT 31 DECEMBER 2010
CompanyNotes Group Company
BALANCE SHEET
The accounting policies on pages 23 to 25 and the explanatory notes on pages 29 to 41 form part of these financial statements.
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STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2010
Company Group Company2010 2009 2009
Note N'000 N'000 N'000Cash flows from operating
activities
Cash receipts from customers 193,599,035
102,683,366
130,146,163Payment to suppliers and
employees (112,257,902) (162,843,069) (29,867,856)
Tax paid 5 (3,408,516) (3,436,271) -Value
added tax (net) 1,577,583 1,775,685 1,706,744
Net cash provided
by operating activities 22 79,510,200 (61,820,289) 101,985,051
Cash flows from investing
activitiesInterest received 870,553 2,520,128 2,330,862
Share capital 17 -
500,000 -
Share premium 18 -
42,430,000 -
Disposal / (Purchase) of investments 99,000 (12,166,325) (16,659,134)
Proceed
on
disposal of fixed
assets 24,688 4,732 3,200Purchase of fixed
assets 7 (113,686,841) (16,050,322) (13,795,125)
Net cash provided
by investing activities (112,692,599) 17,238,213 (28,120,197)
Cash flows from financing
activitiesFinance charges (2,952,015) (6,043,204) (4,171,378)Dividend
paid (30,982,595) (3,915,382) -
Loan
obtained/(repaid) 71,443,339 64,409,066 (64,317,931)
Net cash provided
by financing activities 37,508,729 54,450,480 (68,489,309)
Net increase in cash and
cash equivalents 4,326,330 9,868,404 5,375,545
Cash and
cash equivalents at 1 January 16,913,894 7,045,490 7,045,490
Cash and
cash equivalents at 31
December 23 21,240,224 16,913,894 12,421,035
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1. The Company
1.1 Legal form
1.2 Principal activities
Company Group Company2010 2009 2009
N'000 N'000 N'0002. Turnover
Turnover represents the
net amount of goods
invoiced to customers within Nigeria.
Analysis by operation:
Cement - Local 202,565,698 189,620,975 129,797,087
3. Other income
Duty rebate - 11,800 11,800
Insurance claims 263,830 62,781 54,634Gains from haulage 80,037 26,683 -
Provision
no
longer required 147,928 708,131 700,471Profit on
disposal of fixed
assets 6,673 1,245 -
Miscellaneous 27,928 162,237 135,282
526,396 972,877 902,187
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
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Company Group Company
2010 2009 2009
N'000 N'000 N'0004. Profit before taxation
and
extra ordinary item
Profit before taxation is arrived at
after charging/(crediting):
Directors' emoluments 128,026 102,273 55,034
Depreciation 14,220,233 11,527,269 7,763,735
Audit fee 120,000 90,000 62,000
Interest income (870,553) (2,520,128)
(2,330,862)Exchange loss 864,160 1,137,159 1,140,313
Finance charges 2,952,015 6,043,204 4,171,378
(Profit)/loss on sale of fixed assets (6,673) (1,245) 287
Technical operating fee - 122,276 33,597
Royalties 184,632 116,199 116,199Management fee - 2,323,393 1,024,400
Company Group Company5. Taxation 2010 2009 2009
N'000 N'000 N'000a) Profit and loss account
Income tax based on the profit for the year 2,305,155 1,561,991 1,408,441
Education tax 159,545 138,696 119,547
(Over)/under provision in the prior year (185,086) 211,832 203,774
2,279,614 1,912,519 1,731,762
Deferred tax (Note 15) (7,550,555)
471,122 526,949
Profit and loss account (5,270,941)
2,383,641 2,258,711
b) Balance sheetAt 1 January 4,347,342 5,871,094 1,336,315
Charge for the year 2,279,614 1,912,519 1,731,762
Paid during the year (3,408,516) (3,436,271) -
Withholding tax credit (21,617) - -
At 31 December 3,196,823 4,347,342 3,068,077
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
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Plant and Factory, CapitalLand and
other Motor furniture and work-in-7. Fixed assets buildings equipment vehicles equipment progress Total
N'000 N'000 N'000 N'000 N'000 N'000CostAt 1 January
2010 51,388,533 145,209,173 13,576,185 1,397,794 3,665,930 215,237,615Adjustments (Note 7.1) - (7,875) - - (391,140) (399,015)Additions during the
year 72,194 1,819,246 4,365,839 78,998 107,350,564 113,686,841Disposal - (27,126) (11,061) (394) - (38,581)
At 31
December 2010 51,460,727 146,993,418 17,930,963 1,476,398 110,625,354 328,486,860
DepreciationAt 1 January
2010 2,319,166 21,959,441 3,759,404 806,258 - 28,844,269Adjustments (Note 7.1) - (58) - - - (58)Charge for the
year 489,617 9,395,887 4,051,540 283,189 - 14,220,233Disposal - (10,776) (9,511) (279) - (20,566)
At 31 December 2010 2,808,783 31,344,494 7,801,433 1,089,168 - 43,043,878
Net book value
At 31
December 2010 48,651,944 115,648,924 10,129,530 387,230 110,625,354 285,442,982
At 31
December 2009 49,069,367 123,249,732 9,816,781 591,536 3,665,930 186,393,346
Company Group Company
7.2 The depreciation charge for the year is attributable to: 2010 2009 2009N'000 N'000 N'000
Cost of sales 9,593,996 9,263,092 5,625,330Administrative expenses 762,009 488,338 362,338Included in loss from haulage 3,864,228 1,775,839 1,775,839
14,220,233 11,527,269 7,763,507
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
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Company Group Company2010 2009 2009N'000 N'000 N'000
8. Investments
8.1 Quoted Investments
Benue Cement Company Plc - - 9,491,390
8.2 Unquoted Investments
Lion
Football
Club
Limited 50 50 -Dangote BAIL Limited - - 7,068,744
- 99,000 99,000
At 31
December 50 99,050 16,659,134
Class
of 2010 2009shares % Holding % Holding
The
subsidiaries (unquoted) are:
Lion
Football
Club
Limited Ordinary 100.00 100.00Benue
Cement Company Plc Ordinary - 74.77Dangote Bail
Limited Ordinary - 99.90DCW Limited Ordinary - 99.00
DCW Limited
The market value of quoted investment as at 31 December2010
was nil
(2009
- N126,174,733,188)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
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Company Group Company
2010 2009 20099. Stocks N'000 N'000 N'000
Finished products 791,355 1,126,393 928,179
Work in process 1,396,010 1,300,447 1,046,235
Raw materials 535,128 1,495,063 207,488Packaging materials 380,742 146,629 146,629Chemicals and
consumables 2,637,883 868,993 868,993
Spare parts 4,500,949 4,640,032 2,849,304Goods in transit 4,314,344 3,889,449 3,852,032
Stock- trading items 309,744 352,505 352,505
14,866,155 13,819,511 10,251,365Provision
for obsolete stock items (877) (445,406) -
14,865,278 13,374,105 10,251,365
10. Trade debtors
Trade
debtors 12,823,265 7,370,828 6,468,684
Provision
for doubtful debts (1,445,091)
(545,114) (430,057)
11,378,174 6,825,714 6,038,627
11. Other debtors and
prepayments
Prepayments 505,027 723,686 691,355
Advances to contractors 3,862,594 764,814 -Deposits for imports (11.1) 1,064,536 2,432,438 -Gas pipeline
- build
and transfer (11.2) 5,678,446 5,989,162 5,989,162
Project funds (11.3) 31,267,447 25,868,382 25,868,382Other
debtors 6,884,290 7,385,591 6,789,249
49,262,340 43,164,073 39,338,148Provision
for doubtful balances (5,235,094)
(4,070,754)
(4,070,754)
44,027,246 39,093,319 35,267,394
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
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Group Company
2010 2009 2009N'000 N'000 N'000
12. Short term deposits 10,515,729 9,452,915 9,452,915
13. Other
creditors
Down payments received
from customers 11,514,705 8,376,902 7,029,254Accrual
for cement purchases 5,604,070 7,956,461 4,174,006Other accruals 5,954,710 8,186,441 1,724,485Other credit balances 4,652,389 1,402,599 712,187Director's current account 1,753,823 1,753,823 1,753,823Deposit for shares - 100,000 -Interest payable
1,968,773 1,285,896 1,285,896Value
added tax 3,353,268 1,775,685 1,706,744WHT payable 1,973,289 - -Staff
pension
(Note 13.1) 99,309 128,105 86,765
36,874,336 30,965,912 18,473,160
13.1 Staff pension
At 1 January 128,105 120,065 80,908Provision
for the
year 233,876 237,331 164,229
361,981 357,396 245,137Payment during the
year (262,672) (229,291) (158,372)
At 31
December 99,309 128,105 86,765
14. Loans Short term Long term Short term Long termdebts debts debts debts
Amount due Amount due Amount due Amount due within after more within after more
12 months than 12 months 2010 12 months than 12 months 2009N'000 N'000 N'000 N'000 N'000 N'000
Zenith Bank Plc (Note 14.1) 13,333,333 26,666,667 40,000,000 - - -Access Bank Plc (Note 14.1) 6,666,666 13,333,334 20,000,000 - - -Fidelity Bank Plc (Note 14.1) 6,666,666 13,333,334 20,000,000 - - -Access Bank Plc - - - 2,050,025 3,075,038 5,125,063Ecobank Plc - - - 1,920,000 3,840,000 5,760,000Bulk Commodities International (Note 14.2) 492,427 - 492,427 487,244 - 487,244Subordinated (Note 14.3) - 42,704,758 42,704,758 - 42,704,759 42,704,759Dangote Industries Limited (Note 14.4) 10,441,900 2,213,320 12,655,220 10,332,000 - 10,332,000
37,600,992 98,251,413 135,852,405 14,789,269 49,619,797 64,409,066
Short term deposits represents deposits held
with various banks.
Provision for staff pension has been made in the f inancial statements in accordance with thePension
Reform Act 2004.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
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Company Group Company2010 2009 2009
15. Deferred taxation N'000 N'000 N'000
At 1 January 9,474,955 9,003,833 7,959,126(Write back) / Provision for the year
(7,550,555)
471,122 526,949
At 31 December 1,924,400 9,474,955 8,486,075
Company Group Company2010 2009 2009N'000 N'000 N'000
16. Staff gratuity
At 1 January 981,244 819,286 272,679Provision for the year 100,268 588,474 104,340Provision
no longer required (51,362) - -
1,030,150 1,407,760 377,019Payments
during the year (535,466) (426,516) (26,279)
At 31 December 494,684 981,244 350,740
17. Share capital
Authorised:20,000,000,000 ordinary shares of 50k
each (2009: 500,000,000 ordinary shares of N1 each) 10,000,000 500,000 500,000
Issued and fully paid:
500,000 500,000 500,00014,000,000,000 bonus issue at 50 kobo per share (Note 17.3) 7,000,000 - -491,370,368 new shares issued at 50 kobo 245,685 - -
7,745,685 500,000 500,000
1,000,000,000 ordinary shares of 50k each (2009: 500,000,000ordinary shares of N1 each)
The deferred tax assets for the year have been netted off the previous ly recognised deferred tax liabilities dueto the fact that they could be reliably measured as of the date of these financial statements and inaccordance with the prudence principle.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
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At 31 December - 6,121,937 -
Company Group Company
18. Share premium 2010 2009 2009
N'000 N'000 N'000
500,000,000 ordinary shares of N1.00 eachissued at N84.86 premium 42,430,000 42,430,000 42,430,000
19. Revaluation
reserve
At 1 January 985,805 - -
Eliminated on merger (985,805) 985,805 985,805
- 985,805 985,805
20. Revenue reserves
At 1 January 98,196,429 29,582,218 29,582,218
On acquisition of Lagos Cement Terminal (21,362,885)
21,362,885 21,362,885
On acquisition of Benue Cement Company Plc - (6,746,739)
-
On acquisition of Dangote Bail
Limited - 239,648 -
Profit for the year 105,322,429 61,392,230 47,251,326
Bonus issue (Note 17.3) (7,000,000) - -
Common control combination balance 21,075,680 - -
Dividend paid - Dangote Cement Plc. (Note -20.1) (30,982,741)
(3,915,382)
-
Dividend paid - Benue Cement
Company Plc. (Note - 20.1) (3,915,382) - -
Non-controlling interest:
In Benue Cement Company Plc - (3,710,773) -
In Dangote Bail Limited - (7,658) -
At 31 December 161,333,530 98,196,429 98,196,429
Company Group Company
2010 2009 2009
N'000 N'000 N'000
21. Non
controlling interest
On acquisition of equity in:
Benue Cement Company Plc - 6,107,908 -
Dangote BAIL Limited - 14,029 -
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
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Company Group Company2010 2009 2009N'000 N'000 N'000
22. Reconciliation
of profit after taxation
to net cash provided by operating
activities
Profit after taxation 105,322,429
61,392,230 47,251,326
Depreciation 14,220,233 11,527,269 7,763,735
Interest received (870,553) (2,520,128) (2,330,862)Interest paid 2,952,015 6,043,204 4,171,378Adjustments to fixed
assets 398,957 2,639,481 2,498,493
Transfer of fixed
assets - (191,558,751) (3,237,306)(Profit)/loss on
sale of fixed
assets (6,673) (1,245) 287Transfer of Lagos Cement Terminal profit - 21,362,885 21,362,885
Increase/ (decrease) in capital reserve (15,556,084) 15,556,084 -
Interim dividend - (3,915,382)Revaluation
reserve (985,805) 985,805 985,805
Shares issued 245,684Adjustment to revenue
reserve (4,202,733) - -Adjustment for non
controlling interest (6,121,937) (6,851,051) -
Changes in assets and liabilitiesIncrease in stock (1,491,173) (5,208,595) (5,208,595)Increase in trade
debtors (4,552,460) (3,114,764) (3,114,764)(Increase)/decrease in other
debtors (4,933,927) 41,301,272 41,301,272
Decrease/(increase) in due
from affiliates 757,737 (38,739,618) (38,739,618)
(Decrease)/increase in due to affiliates (2,834,692) 17,504,614 17,504,614Increase in trade
creditors 448,393 510,922 510,922
Increase in other creditors 5,908,424 8,723,190 8,723,190(Decrease)/increase in staff
gratuity (486,560) 283,578 283,578(Decrease)/increase in taxation (1,150,519) 1,731,762 1,731,762
(Decrease)/increase in deferred
taxation (7,550,555) 526,949 526,949
Total adjustments (25,812,229) (123,212,519) 54,733,725
Net cash provided by operating
activities 79,510,200 (61,820,289) 101,985,051
Adjustments to reconcile net income to net
cash provided by operating
activities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
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Company Group Company2010 2009 2009N'000 N'000 N'000
23. Cash and cash equivalents
Bank and
cash balances 10,760,935 10,733,061 6,240,202
Short term deposits (Note 12) 10,515,729 9,452,915 9,452,915
Bank overdraft (36,440) (3,272,082)
(3,272,082)
21,240,224 16,913,894 12,421,035
24. Future capital expenditure
Committed 28,634,350 20,154,400 20,154,400
Not committed - - -
28,634,350 20,154,400 20,154,400
25. Chairman's and
Directors' emoluments
i) The
Directors' emoluments comprise:
Fees 4,100 - -Emoluments as Executive 55,485 42,000 30,000
59,585 42,000 30,000
Chairman 500 - -
Highest paid Director 38,335 42,000 30,000
ii)
N N Number Number Number
1 - 3,200,000 8 9 -8,740,001 - 8,750,000 - 1 -
10,000,001 - 20,000,000
1 1 1 Over 20,000,000
1 2 2
Number of Directors (excluding the Chairman)whose emoluments were within the followingranges:
Capital expenditure authorised by the Directorsand
not provided
for in the
account:
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
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Company Group Company2010 2009 2009
Number Number Number26. Employees
i)
N N
250,001 - 500,000 - - 1,021500,001 - 750,000 2,358 1,796 535750,001 - 1,000,000 315 535 392
1,000,001 - 1,250,000 200 720 461,250,001 - 1,500,000 18 317 181,500,001 - 2,000,000 43 100 1392,000,001 and
above 237 - 64
3,171 3,468 2,215
ii)
Management 164 140 76Non-Management 3,007 3,328 1,911
3,171 3,468 1,987
N'000 N'000 N'000iii) Aggregate payroll
costs:Wages, salaries and
staff
welfare 6,750,849 5,797,605 3,955,198Pension
costs 233,876 237,331 164,229Gratuity provision 100,268 588,474 104,340
7,084,993 6,623,410 4,223,767
The
average number of persons employed
during the
year excluding
Employees remunerated at higher rateexcluding allowances:
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
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Company Group Company
2010 2009 2009
N'000 N'000 N'00027. Related party transactions
a) Purchases of goods and
services
Dangote Agro Sacks Plc 7,624,171 6,885,948 4,880,129
b) Amounts due from related companies
Dangote Industries Limited - Current Account 20,711,582 24,989,257 6,953,873
Savannah
Sugar Company Plc 1,371,262 379,999 379,999
Kogi Oil
Services 896 896 896
Alhaji Saayu Dantata -
2,793 2,793
Alheri Engineering Company Limited 3,193 3,193 3,193Dangote Nigeria Limited -
81,345 81,345
Dangote Noodles -
18,339 18,339
Dangote Flour Plc 211,865 169,921 169,921
Dangote Sugar Refinery Plc 1,604,800 555,968 1,491,287
Dangote Pasta Limited 43,207 103,460 103,460
Dangote Agro Sacks Plc -
79,164 590,329
Bulk Commodities International 736,483 - -National Salt Company of Nigeria Plc 159,615 227,322 227,322
Others 906,353 950,108 16,635,432
25,749,256 27,561,765 26,658,189
Provision
for doubtful balances (699,157) (1,753,929)
(1,753,929)
25,050,099 25,807,836 24,904,260
c) Amounts due to related companiesDangote Agro Sacks Plc 1,466,788 - -
M.R.S Oil
and Gas Company Limited 4,932,252 2,880,544 984,155
Bulk Commodities International - 6,526,549 6,526,549
Dangote Travels Limited 129,818 129,818 129,818
Dangote AD Star Limited 280,906 - -
Continental Cement Ltd 50,311 - -Dansa Foods 2,530 - -
Alhaji Abdulmaman 696 --
--Dangote Noodles 16,861
Greenview Nigeria Limited 108,652 104,855 104,855
Super Group - 181,740 181,740
6,988,814 9,823,506 7,927,117
The following transactions were carried
out with
related parties during the
year:
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
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28. Cost of sales
29. Contingent liabilities
30. Other contingencies
31. Post balance
sheet events
32. Comparative figures
33. Earnings
per share
The Directors are of the opinion that there were no post balance sheet events which could have had
material effect on the state of affairs of the Group at 31 December, 2010 and on the profit for the yearended
on that
date which have not been
adequately provided
for or recognised.
Certain comparative figures have been
restated
where necessary for a more meaningful comparison.
A long term gas purchase agreement was entered into by the com pany with Nigerian Gas Company
Limited for the supply of natural gas to the cement plant in Obajana. The agreement is for twenty (20)
years with effect from October 2006. This commits the company to taking up a specified minimum
quantity of gas over the duration of the purchase agreement. The agreement as at 31 December
2010
had
less than
16
years to run.
No provision has been made in these financial statements for contingent liabilities in respect oflitigations against the company amounting to N4.3 billion (2009 - N48.10 million). According to the
solicitors acting on behalf of the company, the liabilities arising, if any, are not likely to be significant.
Earnings per share (EPS) has been computed based on profit after taxation and number of ordinaryshares of 15,491,370,368
(2009: 1,000,000,000).
Netted off cost of sales is a sum of N3.89 billion representing prior year provision in respect of Low Pour Fuel Oil (LPFO) no longer required.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
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28. Cost of sales
29. Contingent liabilities
30. Other contingencies
31. Post balance
sheet events
32. Comparative figures
33. Earnings
per share
The Directors are of the opinion that there were no post balance sheet events which could have had
material effect on the state of affairs of the Group at 31 December, 2010 and on the profit for the yearended
on that
date which have not been
adequately provided
for or recognised.
Certain comparative figures have been
restated
where necessary for a more meaningful comparison.
A long term gas purchase agreement was entered into by the com pany with Nigerian Gas Company
Limited for the supply of natural gas to the cement plant in Obajana. The agreement is for twenty (20)
years with effect from October 2006. This commits the company to taking up a specified minimum
quantity of gas over the duration of the purchase agreement. The agreement as at 31 December
2010
had
less than
16
years to run.
No provision has been made in these financial statements for contingent liabilities in respect oflitigations against the company amounting to N4.3 billion (2009 - N48.10 million). According to the
solicitors acting on behalf of the company, the liabilities arising, if any, are not likely to be significant.
Earnings per share (EPS) has been computed based on profit after taxation and number of ordinaryshares of 15,491,370,368
(2009: 1,000,000,000).
Netted off cost of sales is a sum of N3.89 billion representing prior year provision in respect of Low Pour Fuel Oil (LPFO) no longer required.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
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Company
2007
N'000
130,518,631
-
4,797,725
-
(77,211,790)
(33,581)
58,070,985
500,000
42,430,000
-
11,622,109
-
3,518,876
58,070,985
-
58,070,985
34,595,913
12,252,875
(630,766)
11,622,109
-
11,622,109
23116
Group Company Company
2009 2009 2008
BALANCE SHEET N'000 N'000 N'000 N'000
ASSETS / LIABILITIES
Fixed assets 285,442,982 186,393,346 142,388,500 135,621,674
Investments 50 99,050 16,659,134 -
Net current assets 26,736,680 37,373,855 41,521,212 1,806,654
Deferred taxation (1,924,400) (9,474,955) (8,486,075) (7,959,126)
Long term debts (98,251,413)
(49,619,797)
(49,619,797)
(56,889,822)
Staff gratuity (494,684) (981,244) (350,740) (67,162)
NET ASSETS 211,509,215 163,790,255 142,112,234 72,512,218
CAPITAL AND
RESERVES
Share capital 7,745,685 500,000 500,000 500,000
Share premium 42,430,000 42,430,000 42,430,000 42,430,000
Revaluation reserve - 985,805 985,805 -
Revenue reserve 161,333,530 98,196,429 98,196,429 29,582,218
Capital reserve - 15,556,084 - -
Foreign exchange revaluation reserve - - - -
211,509,215 157,668,318 142,112,234 72,512,218
Non-controlling interest - 6,121,937 - -
211,509,215 163,790,255 142,112,234 72,512,218
Turnover, Profit and
Loss Account
Turnover 202,565,698 189,620,975 129,797,087 61,906,088
Profit before taxation 101,334,468 63,775,871 49,510,037 26,624,785
Taxation 5,270,941 (2,383,641) (2,258,711) (8,664,675)
Profit after taxation 106,605,409 61,392,230 47,251,326 17,960,110
Extraordinary item (1,282,980) - - -
105,322,429 61,392,230 47,251,326 17,960,110
Per share data (Naira):
Earnings - (Basic) 7 123 95 36Net assets 14 328 284 145
Profit after taxation and extraordinary
item
Company
2010
31 DECEMBER
FINANCIAL SUMMARY
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SHARE CAPITAL HISTORY
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Two classroom blocks donated in Gboko
Water borehole for one of our host communities in Gboko
CSR
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Dangote CementResettlement Scheme for host communities in Obajana, Kogi State
A classroom block
A clinic donated to host community
One of the transformers donated
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Mr. Devakumar Edwin, Director, Dangote Cement (left) presenting a cheque of N5million to the traditional ruler of Ibese (middle) community to assist in rebuilding his palace which was gutted by fire
Transformers at Oyo Resettlement site
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Clinic at Oyo Resettlement Project
High and Low Tension wire-lines at Oyo Resettlement project
CSR
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E-DIVIDEND MANDATE
A F R I B A N KReg. No. RC 613674
The Registrar,AFRIBANK REGISTRARS LTD2A, GBAGADA EXPRESSWAY,ANTHONY VILLAGE LAGOS.Tel: 01-2799133-4, 7735963, 7735967.Fax: 01-2799132P.M.B. 12974, LAGOS.Website:
www.afribankregistrars.comE-mails: [email protected]
ABUJA BRANCH OFFICEAfribank House3, Kaura Namoda StreetOff Tafawa Balewa WayArea 3, GarkiAbuja F.C.T.Tel: 09-8700937, 09-8700074Abuja E-mail: [email protected]
Dear Sir,I/We hereby request that all dividend(s) due to me/us from my/our holding in Dangote Cement Plcbe paid directly to my/our Bank named below:
NAME OF BANK BRANCH
BANK ADDRESS
BANK ACCOUNT NO.
SHAREHOLDERS FULL NAME
SURNAME TITLE
OTHER NAMES
FULL ADDRESS:
CSCS NO. CHN NO.
BROKERS NAME
MOBILE (GSM) NO. LAND LINE
E-MAIL FAX
SHAREHOLDERS SIGNATURE(S)/COY SEAL BANKS AUTHORIZED SIGNATURES/STAMP
1
2
1
2
-
PROXY FORM
To receive the audited Financial Statements for the year ended 31st December, 2010, the reports of the Directors, Auditors and Audit Committee thereon;
1.
To declare a final dividend;2.
To elect or re-elect Directors;3.
To fix the remuneration of the Directors;4.
To authorise the Directors to fix the remuneration of the Auditors;5.
To elect members of the Audit Committee.6.
ORDINARY BUSINESS
SPECIAL BUSINESS
7.
I/We desire this proxy to be used in favour of/or against the resolution as indicated alongside ( s t r i k e o u t whichever is not
NO. FOR AGAINST
This proxy form should NOT be completed and sent to the registered office if the member will be attending the meeting.
Before posting this form, please tear off this part and retain it for admission to the meeting.
NAME AND ADDRESSOF SHAREHOLDER(S):
NUMBER OF SHARES HELD:ADMISSIONC A R D
that the shareholders hereby approve nominal transfer of all of Dangote Industries Limiteds African (non-Nigerian) Cement interests to Dangote Cement Plc and that Dangote Industries Limited be reimbursed for all payments made to date (21/3/2011);
-
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