Dangote Cement Plc Annual Report 2021
Strategic report
Furthermore, in January 2022 the Company completed the
second tranche of its buy-back programme. Dangote Cement has
now repurchased 0.98% of its outstanding shares. This share buy-
back programme reflects the Company's unwavering
commitment to creating value and identifying opportunities to
return cash to shareholders.
Operating performance
In 2021, we began operations in our new 3Mta Okpella plant in Edo
state, where we are successfully ramping up production and have
contributed to creating a new industrial hub. We are actively
deploying our alternative fuel strategy across all countries of
operations, to optimise energy efficiency, reduce reliance on fossil
fuels and ultimately reduce CO2 emission. Whilst we focused our
efforts on meeting the robust demand of our local market in
Nigeria, at the expense of our export markets, we still made
significant progress in our cement and clinker exports. In 2021, we
exported 7 ships of clinker out of Nigeria and exported cement
from 5 of our operations. Our vision is for West and Central Africa
to be cement and clinker self-sufficient, while making the regional
and continental free trade agreements a reality.
Our Nigeria operations sold over 18.6Mta of cement, up 16.8% year
on year, growing faster than the market, thus increasing our
market share. This strong demand was due to a resilient retail
market and rejuvenated growth in housing and infrastructure
investments. However, despite the global rise in freight cost and
overall international supply chain challenges, Pan-Africa volumes
were up 8.7% to 10.9Mta. In addition, our Pan-African operations
achieved another record EBITDA of N88.8 billion, up 24.6%,
notably supported by strong performances in Ethiopia
and Senegal.
Board changes
On 14th November 2021, we sadly lost one of our Board members,
my dear brother, Mr Sani Dangote. Mr Sani Dangote had been an
active Board member since his appointment on 22nd July 2005.
His commitment and contribution to the Board of Dangote
Cement over the past 16 years will not be forgotten. Nevertheless,
his legacy remains dear to our hearts.
The Board appointed Mr. Philip Mathew as the Deputy Group
Managing Director effective from 15th September 2021. The Board
welcomes Philip to the Dangote family and wishes him every
success in his new role.
Along with our focus on strategy, we have also made progress on
the effectiveness and diversity of our Board. Ms. Halima Aliko-
Dangote was appointed to the Board of Dangote Cement as a
Non-Executive Director effective 26th February 2022. This brings
our female Board representation to 27%, from 20% in 2020 in
addition to the six different nationalities and five independent
non-executive directors on our Board.
Sustainability journey
As a brand that is built on a vision to create sustainable value for
stakeholders, Dangote Cement prioritises its environmental, social
and governance responsibilities and understands that these
ultimately translate to business sustainability. We continue our
sustainability and governance efforts with our 7 Sustainability
Pillars 'The Dangote Way'. The 7 Pillars: cultural, economic,
institutional, financial, environmental, operational and social,
provide the appropriate framework in which we have embedded
our corporate values and strategic objectives.
Our strategy in 2021 focused on energy transition, which is a
crucial enabler of sustainable development and climate resilience
on the continent. We have increased our focus on alternative fuels
in our energy mix. We are actively investing in installing mechanical
multi-fuel systems that can process diverse types of wastes. I am
pleased to report that Dangote Cement has, for the third time,
submitted to the Carbon Disclosure Project (CDP) and, this time,
achieved a rating upgrade to B-. This demonstrates our
coordinated action on climate issues. To improve our performance
on transparency and disclosure, Dangote Cement became the
first Nigerian listed company to report its financial results using
the eXtensible Business Reporting Language (XBRL) format with
the IFRS taxonomy. Our social investment transcends beyond the
environment to tackle social issues through the provision of
scholarships, the empowerment of SME's and social amenities for
underserved populations in the countries where we operate. We
are genuinely delighted to have collaborated with communities,
civil societies and the Government during the 2021 Sustainability
Week, an impactful employee volunteering initiative of the
Company. Through collaboration and commitment, we advanced
in production capacity and ensured that this does not come at
the cost of people, climate and environment.
COVID-19
We have been pragmatic in our approach to ensure the health
and safety of our people. As Africa's leading cement manufacturer,
we have taken deliberate steps to deploy resources to help our
communities overcome hardships during these turbulent times.
Over the last two years, I have led the CACOVID initiative, a
Nigerian private sector coalition against COVID-19 set up at the
outset of the pandemic. In 2021, CACOVID focused on supporting
the Government on oxygen supply for case management,
reopening the economy and supporting the Government in its
vaccination drive. We continued regular testing and aftercare for
our staff, while encouraging all staff to get vaccinated. Dangote
Cement remains committed to keeping its staff and communities
safe by being fully compliant with health and safety measures in
all our operational regions.
Outlook
I remain very optimistic about the future of Dangote Cement. Our
Board is considering all strategic and financial options for the
Company. We strive to improve in all areas of our organisation,
and I thank all our staff for their commitment and effort toward
achieving the vision of our Board and Executive Team.
Our strategy remains steadfast, focused on organic growth in
Nigeria and Pan-Africa, while ensuring that Africa's regional
integration becomes a reality. We will continue to contribute to
improving regional trade within Africa by building plants across
West and Central Africa, therefore eliminating the need for the
importation of cement. In addition, we aim to deliver superior
profitability and value to our shareholders. Lastly, we remain
focused on demonstrating our clear commitment to transparency
around environmental impacts and strategies for action while
taking coordinated steps on climate issues.
I would like to thank our shareholders, host governments,
communities, staff and stakeholders at large, for the support we
have received over this transformative but fulfilling year. We are
grateful for your continuing faith in our Company and look forward
to an exciting and productive 2022.
angit.
Aliko Dangote
Chairman
1st March 2022
Dangote Cement Plc Annual Report 2021
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