Dangote Cement Plc Annual Report 2021
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RENT
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Strategic report
The direct economic impact
We continue to generate impressive returns for our stakeholders.
Our profit after tax in 2021 was #364.3 billion as against #276.1
billion in 2020. This also led to a 31.6% increase in the earnings per
share of N21.24, versus N16.14 in 2020.
Dividend payment history - shareholders
At Dangote Cement, we pursue a dividend policy that reflects the
Company's earnings and cash flow, while maintaining appropriate
levels of dividend cover. Our history of dividend payments
pre-dates our listing on the Nigerian Exchange Group in 2010.
We have consistently paid dividends over the years, with a payment
history of 7.00, #6.00, N8.00, N8.50, N10.50, N16.00, N16.00 and
N16.00 per share in 2013, 2014, 2015, 2016, 2017, 2018, 2019 and
2020 respectively. In 2021, our proposed dividend payment was
up 25% at #20.00 per share ensuring that we keep our promise of
continuous wealth creation for our valued shareholders.
Dividend payment history - shareholders
2013-2021 (#)
20
15
10
5
0
2013 2014 2015 2016 2017 2018 2019 2020 2021
Community investments
As part of our corporate social responsibility, we spent #2,490
billion on community investments in 2021, including strategic
sponsorships, community projects, donations, charitable gifts,
and community affairs expenses. Our detailed community
investments in 2021 are disclosed in the social investments section
of this report.
Indirect economic impact
To support sustainable development and the United Nations
Sustainable Development Goals (SDGs), we provide quality
cement for construction purposes and invest directly in
infrastructural projects in host countries. Our value chain activities,
spending and business investments boost local industries and
create multiplier effects that support poverty alleviation, jobs and
improved livelihood. Building mutually beneficial relationships
with our stakeholders and enabling local communities' economic
prosperity is key to our Economic Sustainability Pillar.
In 2021, financial commitment to sustainability was remarkable in
Pan-Africa with Dangote Cement Tanzania allocating Sh648 million
for implementation of Corporate Social Responsibility (CSR)
projects in 13 villages in the region. In response to unemployment
rates and the improvement of work conditions, Dangote Cement
Senegal entered an agreement with the government to recruit
333 temporary workers based on an annual quota spread over
2 years. We are also pleased with the scale of local economic
development in the continent. Our response to the demand of
cement in the region occasioned by urbanisation contributed to
restarting Gboko plant.
ESG compliance
ESG is an increasingly growing trend and the current focus is
an effect of long-term structural changes. In the aftermath of
the COVID-19 pandemic, the conversation around ESG become
an increasingly significant part of our reports and disclosures.
In a time where corporate sustainability concerns dominate
headlines, ESG factors are not considered trivial issues confined to
a company's CSR department. To us at Dangote, ESG has become
central to business performance and reputation. Corporate
sustainability for us is not just about "doing good". The business
integrates the concerns of key stakeholders into operations, using
ESG factors to assess our environmental, social and corporate
governance practices.
The integration of ESG factors in our operations in Pan-Africa
is viewed as a necessity to evaluate ESG performance in a
measurable and meaningful way. In 2021 we advanced in the
process through the adoption of positive ESG screening. This
process involved setting specific ESG metrics, and targets as
benchmarks for evaluating the year's performance. Conducting
fundamental research to identify material ESG issues that tangibly
affect production outcomes as a cement industry was a critical
step taken in the year. This process informed our ESG-driven
corporate carbon reduction initiatives as well as other ESG goals
for the upcoming year, which we are firmly on track to achieve.
Thought leadership - association and memberships
As part of our commitments to adhering to high standards of
governance, social and environmental policy and performance,
we belong to industry associations where, as members, we
reflect their values and allow external stakeholders to hold us
accountable. We are a member of various associations and
organisations at both local and global level. These memberships
are focused at advancing thought leadership, exchanging ideas
with similar organisations, commit to global best practices
and achieve greater sustainability performance. As the leading
cement manufacturing company in Africa, we are a member of
the following organisations:
•
Global Cement and Concrete Association;
.
United Nations Global Compact;
Public Sector Advisory Group;
•
Science Based Targets Initiative;
Premium Board Member of the Nigeria Exchange Group; and
World Economic Forum, among others.
Recognition and awards
In 2021, we received diverse awards from reputable institutions
such as the Kogi State Chamber of Commerce, Industry, Mines
and Agriculture (KOCCIMA) which named Dangote Cement Plc,
Obajana Plant, as the best performing company in Africa for
its environment-friendliness. Dangote Cement Plc, Ibese plant
won an award as the Best Employer in Training by the Industrial
Training Fund (ITF). Recognising our efforts to implement local and
international standards in Pan-Africa, Dangote Cement Zambia
Limited won the "Exporter of the Year 2021" 1st prize in the Large
Enterprise category under the Zambia Quality Awards. In addition,
Dangote Cement's N100 billion maiden Senior Unsecured Bond
won 2021's Bonds, Loans & Sukuk Africa Awards for Local Currency
Corporate Bond Deal of the Year in Africa.
Dangote Cement Plc Annual Report 2021
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