Dangote Cement Plc Annual Report 2021
Directors' report
The Directors of Dangote Cement Plc present the Consolidated
and Separate Financial Statements for the year ended 31st
December 2021. The Directors have considered all the matters
brought before them in the financial year under review and are
satisfied that the Directors' Report represents a fair, balanced and
realistic view of events.
Legal form
Obajana Cement Plc., subsequently renamed Dangote Cement
Plc by virtue of a special resolution dated 14th July 2010, was
incorporated in Nigeria as a public limited company on 4th
November 1992 and commenced operations in January 2007.
Dangote Cement Plc listed its shares on the Nigerian Exchange
Group ("the Exchange") on 26th October 2010, and it has a market
capitalisation of N4.4 trillion as at 31st December 2021.
Principal activities
The Company was incorporated for the purpose of establishing
factories for the preparation, manufacture, sale and distribution
of cement and related products. Our operational activities
are undertaken at various plants in Nigeria and through our
subsidiaries across Africa. Details of our production, grinding and
import facilities in Africa can be found in note 18 of the financial
statements.
Subsequent events
Other than those disclosed in note 36 of the financial statements
there were no other events after the reporting date which could
have had a material effect on the financial position of the Group as
of 31st December 2021, which have not been adequately provided
for in the financial statements.
Directors' responsibilities
The Directors are responsible for preparing the financial
statements, which they confirm gives a true and fair view of the
Company's state of affairs and the profit or loss for that period. The
financial statements comply with the provisions of the Companies
and Allied Matters Act (CAMA), 2020. In so doing, they ensure
that they act in accordance with the Directors' responsibilities
outlined below:
1.
The Board is charged with ensuring that appropriate values
and ethics of the Company are agreed and that appropriate
procedures and policies are in place to ensure that these
are implemented effectively. The Board ensures leadership
through oversight and review. Supported by its Committees,
the Board sets the Company's strategic direction and aims to
deliver a sustainable increase in shareholder value over the
longer term.
2. The Board ensures that proper accounting records are
maintained. The accounting policies are consistently applied,
and appropriate financial statements are prepared on a going
concern basis, conforming to applicable law and standards.
Most of this responsibility is delegated to the Board Finance
and Investment Committee.
3. The Board ensures that internal control procedures are
established to safeguard the Company's assets and
detect fraud and other irregularities. It also oversees the
implementation of risk assessment processes to identify,
manage and mitigate the principal risks of the Company's
business. Much of this work is delegated to the Board Audit,
Risk and Compliance Committee.
•
4. The Board reviews the remuneration framework, performance
criteria and succession planning at Board and Executive
Management level. It also oversees the Group's human
resources strategy, including the organisational and
compensation structures. Much of these responsibilities
are delegated to the Board Remuneration, Governance and
Nomination Committee.
5. The Board reviews the structure of the Board and develops
governance policies in line with regulatory requirements and
international best practices. Many of these responsibilities
are delegated to the Board Remuneration, Governance and
Nomination Committee.
6. The Board ensures that the technical and operational
aspects of the business are conducted in line with global
best practices. It assesses the feasibility of proposed new
projects and ensures that plant operations comply with local
and international laws and align with our business goals.
Also, it is responsible for overseeing new technology and
development programmes of the business. Many of these
responsibilities are delegated to the Board Technical and
Sustainability Committee.
Board Committees
The Board Committees do not assume the functions of
management, which remain the responsibility of the Group
Managing Director and Executive Management. Members of
Senior Management are invited to attend meetings of Board
Committees as required, while the Committee Chairmen hold
further meetings with certain members of Executive Management
to better review areas of concern. The reports of the Committees
are presented at Board meetings. As part of the review of the
effectiveness of its Committees, the Board has considered the
qualifications and experience of the members and is satisfied that
all the Committee members bring a wide range of knowledge
and skill and will effectively discharge their duties. The Company
Secretary is the Secretary to each Committee.
Results for the
year
Group revenue increased by 34% to 1,384 billion
(2020: N1,034 billion).
Company revenue increased by 38% to 993 billion.
(2020: N720 billion).
Group net profit increased by 32% to 364 billion
(2020: 276.1 billion).
Company net profit increased by 8% to 381 billion
(2020: N352.6 billion).
•
Group earnings per share increased by 32% to 21.24
(2020: #16.14).
Company earnings per share increased by 8% to 22.42
(2020: #20.69).
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