Lafarge Africa Plc N Billion Rights Issue

Transcription

1 Lafarge Africa Plc N Billion Rights Issue Facts Behind the Offer November 30, 2017 Lekki-Ikoyi Bridge, Lagos Nigeria

2 Disclaimer The information in this presentation is given in confidence and may not be reproduced or redistributed to any other persons This document has been prepared solely for use at the Facts Behind the Offer held in connection with the Lafarge Africa PLC ( Lafarge Africa or the Company ) Rights Issue Programme. The information contained in this document has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. The information set out herein may be subject to updating, revision, verification and amendment and such information may change materially. Chapel Hill Denham Advisory Limited ( Chapel Hill ), and Standard Chartered Capital & Advisory Nigeria Limited ( Standard Chartered ), are not under any obligation to update the information contained in this presentation and any opinions expressed in it are subject to change without notice. Chapel Hill, Standard Chartered or any of their respective affiliates, advisers or representatives shall not have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this document or its contents, or otherwise in connection with this presentation Any decision to purchase or subscribe for securities in connection with the Right Issuance should be made solely on the basis of your own investigations with respect to Lafarge Africa and the Rights Issuance None of the professional parties herein stated nor any of their representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of any information contained in this document Only those particular representation and warranties, if any, which may be made in a definitive written agreement, when, as and if executed, and subject to such limitation and restrictions as may be specified therein, will have any legal effect Any market analysis and estimates presented in this document represent the subjective views of Chapel Hill, and Standard Chartered or the source reference if any 2

3 Outline Section Page 1. Company Overview 5 2. Nigerian Cement Industry Overview Financial Overview Business Outlook Transaction Summary Appendix 28 3

4 Company Overview

5 Snapshot of Lafarge Africa LISTING INFORMATION Listed on The Nigerian Stock Exchange in th largest company on The NSE by market capitalisation Market capitalization of N307 billion 1 9th OPERATIONS 3 COUNTRIES (NIGERIA, SOUTH AFRICA, GHANA) PRODUCTION INFORMATION 14.1 MTPA 2 TOTAL CAPACITY 21 QUARRIES 6 CEMENT PLANTS PRODUCTS Cement Ready-Mix Aggregates Fly Ash SELECT AWARDS Most innovative in manufacturing (2017, 2016), BusinessDay Best Company in Stakeholder Engagement and Most Outstanding Company of the Decade (2016), SERA Best Company in Sustainability Reporting (2015), SERA REVENUE CONTRIBUTION (FY 16) 70% NIGERIA 30% SOUTH AFRICA N220bn 24.7% N16.9bn N3.15 N503bn 6.8% Revenue (FY 16) Revenue CAGR (FY 12 FY 16) PAT (FY 16) Earnings per share (FY 16) Total assets (FY 16) Return on equity (FY 16) Sources: Lafarge Africa, NSE, Bloomberg 1. As at 20 October Excludes aggregates, RMC, Fly Ash 6

6 Lafarge Africa Key Milestones West African Portland Cement Company Limited is established Second factory opened in Sagamu,Ogun State. Combined capacity now 1.5 MTpa Lafarge SA becomes majority shareholder in WAPCO through take over of Blue Circle Industries Plc UK West African Portland Cement Company Plc changes name to Lafarge Cement WAPCO Nigeria Plc Commissioning of Ewekoro II plant in Ogun State, taking the total capacity to 4.5 MTpa N11.8 billion bond issued Increased stake in UNICEM from 35% to 50% through the acquisition of 15% stake from Flour Mills Completed Ashaka Mandatory Tender Offer to Minority Shareholder increasing stake from 58.6% to 82.5% Commissioned additional 2.5mmt plant in Mfamosing, Cross River State To conclude N25 billion Commercial paper Issuance First factory commissioned in Ewekoro, Ogun state. 200,000 Tpa later increased to 600,000 Tpa West African Portland Cement listed on the Nigerian Stock Exchange Modern state of the art plant (1.1 MTpa) replaces old plant in Ewekoro, Ogun State Commencement of Lakatabu Expansion Project in Ewekoro, Ogun State Lafarge Africa is formed through a consolidation of Lafarge S.A. s assets in Nigeria and South Africa Completed acquisition of UNICEM equity Concludes N60 billion bond issuance 6

7 Lafarge Africa: Operations Cement Operations Ready Mix LSAH Region South West South East North East South West North Central South East South Africa Locations Sagamu Ewekoro Calabar Gombe Lagos Abuja Port-Harcourt Johannesburg Capacity (Mtpa) n/a 3.6 Main products / Service Elephant Supaset PowerMax Unicem Ashaka Ready Mix Cement Ready Mix Aggregate Fly ash Revenue contribution (FY 16) 39.3% 19.7% 7.8% 2.8% 30.4% Main site picture Nigeria operations South Africa operations 9

8 Lafarge Africa: Products and Innovative Solutions Cement The Company has a wide range of cement solutions designed to meet all building and construction needs from small projects like individual home buildings to major construction projects Lafarge s cement brands some of Nigeria s preferred cement of all time Over 55 years with impeccable pedigree Annual Nigerian Industrial Standards Certificate for product quality from the Standards Organisation of Nigeria for over two decades Brand range Ready mix All Lafarge Readymix Nigeria products are durable and of a consistently high quality to provide excellent structural performance with strong support towards environmental friendly applications and green building Lafarge Africa s commitment to innovation Mixed to project specifications and delivered to site Services all sectors of the local industry Aggregates Aggregates, generally consisting of crushed stone, gravel, and sand, are mainly used in the construction of roads, rail track beds, the manufacturing of concrete, concrete products, and asphalt Lafarge works with strategic partners in the country to ensure aggregate supply are consistent and conform to BS-EN Fly ash Fly ash is an extremely fine powder consisting of spherical particles less than 50 microns in size Fly ash is one of the construction industry's most commonly used pozzolans Select construction projects National Assembly Complex Abuja, Third Mainland Bridge, Lagos Cocoa House, Ibadan ABTI American University, Yola Tinapa Business and Leisure Resort, Akwa Ibom Shoprite Mall, Enugu 10

9 Nigerian Cement Industry Overview

10 Nigeria as a key investment destination 18 years Median age in Nigeria One of Africa s largest economies US$457bn 1 Nigeria s 2016 GDP Economic recovery expected in 2017, following 2016 recession; c.1% growth expected in 2017 Middle class households expected to grow from 4.1mn to 11.7mn by Cities with population over 1 million people 77% of population under 35 years 2.5% Population growth to reach 212mn by 2021 Services, 53.73% 600% Nigeria s middle class growth from 2000 to 2014 US$2,178 GDP Per Capita c.187mn Nigeria s population Agriculture, 22.97% Industries, 23.31% A diversified economy with large growth scope for industrials Rural : urban mix expected to shift from 52:48 in 2015 to 48:52 in 2021 Household spending expected to grow by US$26bn from Favourable Demography and Economic Reforms continue to position Nigeria as a key investment destination Demography to drive household demand Urbanization and middle class Young population Support from key policy reforms: ERGP Fiscal discipline World Bank Housing Finance Development Program Improving Financial Stability Improved currency liquidity Successful Eurobond and Diaspora Bond issuances I&E Window for foreign portfolio investors Recovery of Stock Exchange Sources: World Bank, EIU, AFDB Economic Outlook, National Bureau of Statistics, Standard Bank Research, McKinsey & Company, International Monetary Fund 1 World Bank Constant 2010 US$ 10

11 Macro-economics at a glance Nigeria: medium-term macroeconomic outlook September 2017 Strong fundamental in the Long Run Population growth at +2,6%p.a. (+5% for urban) Nominal GDP at +5% p.a. (assumption oil price from 45-71$/bbl) Major housing gap (still growing) Infrastructure gap (roads, power, rail, ) Strong improvement in 2017 Exit from recession but mainly from Oil and Agric sector. Construction and Manufacturing still lagging Stabilization of FX rate but strong Naira liquidity squeeze Macroeconomic outlook Recovery expected in In , recovery is expected with real GDP growth bouncing back In this chapter, we focus on the current economic situation and outlook taking into consideration (1) the massive negative shock from much lower oil prices and (2) the adjustment policy implemented so far, in particular since the 2016 currency depreciation and subsequent economic recession. IMF anticipate +1,9% in 2018 and Review of past episodes of lower oil prices World Bank forecast +2,5% Nigerian GDP growth is closely related to the dynamics global oil prices. In order to assess the macroeconomic outlook in the aftermaths of the oil price shock in 2014, past episodes of oil price downfalls and their impact in terms of economic performances and of policies changes are reviewed. Indeed, several variables play a significant role in economic recovery. GDP growth and oil prices Source: TAC ECONOMICS 11

12 Nigeria Brazil India China South Africa Indonesia Poland Nigerian Cement Industry: Demand Main Drivers of Cement Demand in Nigeria: Increasing urban population (~50%) growing twice as fast as total population (~5% p.a.) Housing Deficit - Nigerian housing stock per capita (units/1000) Infrastructure stock (%) 100% 80% 60% 40% 20% 0% Major housing gap of 17M houses still increasing Housing stock per capita Ideal Source: Chapel Hill Denham Research % of Construction in GDP State of Infrastructure Benchmark Source: National Planning Commission Cement consumption per capita (kg) in 2015 $3,000bn of investment required in infrastructure 1,200 1, Non-construction Construction 0 Nigeria Senegal Algeria Libya Global Average Source: Global Cement Magazine,

13 Nigerian Cement Industry: Overview GDP vs Cement Growth Strong boom in cement consumption between (CAGR 9,7%) Cement market stabilized around 21mt between Cement growth in Nigeria at an avg premium to GDP growth of +2,5% Source: Lafarge Africa Estimates Source: IMF, TAC, Economics Intelligence Unit, Lafarge Africa Estimates 13

14 Cement supply multiplied by 5 in 10 years Cement nominal capacity (mn tonnes) Source: BMI Research 14

15 Structured market with strong regional imbalance 15

16 LH Cement Net Price (NGN/t) Rational price changes and at the right level LH Cement Net Price (CHF/t) LH Net Price CBN Rate LH Net Price Avg Rate LH Net Price (NGN) BUA Sokoto 2 announcement BUA Edo Launch 60 jan-14 avr-14 jui-14 oct-14 jan-15 avr-15 jui-15 oct-15 jan-16 avr-16 jui-16 oct-16 jan-17 avr-17 jui

17 Financial Overview

18 2016 Performance: Perfect Storm (1/2) Revenue (N bn) and y-o-y growth Gross Profit (N bn) and GP Margin CAGR: 25.7% CAGR: 5.6% 160% % % 80 33% % % 60 32% 80% % 40% 40 19% % 30 2% 0% 20-18% % % 0% Revenue % Growth Gross Profit Margin EBITDA (N bn) and EBITDA Margin 69 36% % 27% 25% % 40% % 21 PBT (N bn) and PBT Margin 64 31% 40 15% 29 11% -10% 40% 0% EBITA EBITA Margin 0% (20) (40) (23) PBT PBT Margin -40% Source: Lafarge Africa PLC Audited Financials 18

19 2016 Performance: Perfect Storm (2/2) Total Debt (N bn) Net Debt (N bn) Total Assets (N bn) (6) Shareholders Funds (N bn) Source: Lafarge Africa PLC Audited Financials 19

20 Turnaround Plan in Nigeria to deliver our ambitions Key Indicators Turnaround Enablers Impact compared to Q3 LY Impact YTD Pricing Price adjustments in Q1 and April 2017 sustained +N16,3 Bn +N66 Bn Commercial Performance Product portfolio optimization on track Route to market initiatives and Logistics Performance improvement plan Market share sustained Market share improvement Industrial Performance Stable industrial operations with all running kilns at optimal levels, in spite of disruption in August in Mfamosing ~98% reliability Fuel Flexibility Strong contribution from coal, pet-coke and alternative fuels N2,5 Bn N6,1 Bn FX impact on Cost Reduced exposure to FX in our cost, mainly thanks to higher reliance on coal & AF 15% improvement in exposure 12,6% improvement in exposure Reorganisation SAP implementation, Go live in Q South West plants operations optimised On track Unaudited Quarter 3 & 9 Months Results

21 Key Financial Figures for Q3 & 9M 2017 NGN Million Q M Variance Variance Net Sales 53,679 68,829 28% 161, ,669 39% Operating EBITDA* (377) 6,700 10,192 45, % Operating EBITDA margin -0.7% 9.7% 10.4pps 6.3% 20.2% 13.9pps EBIT (7,351) (9,716) (32,972) 18, % EBIT Margin -13.7% -14.1% -0.4pps -20.5% 8.2% 28.7pps Net Finance Cost (2,836) (7,351) (7,395) (17,309) Before tax Profit (10,183) (17,067) (40,368) 1,094 After tax Profit (7,156) (18,794) (37,402) 938 Earnings per Share (in Kobo) (162) (360) (827) 10 Operating Cash flow 8,592 (1,537) Net Debt 117, ,550 Capex 30,405 7,396 *Operating EBITDA adjusted for Ashaka delisting cost, Rights Issue Cost, restructuring and ERP implementation cost, South Africa System stabilization Project & Inventory write-off: (9M-17 N3.6b : Q3-17 N2.3b, 9M-16 Nil, Q3-16 Nil) Unaudited Quarter 3 & 9 Months Results

22 Nigeria Operations Strong operational performance Q M Variance Variance Cement (kt) 1, % 4,093 3, % ReadyMix (km 3 ) % % NGN Million Net Sales 30,703 44,191 44% 107, ,611 45% Operating EBITDA* (1,440) 12,198 8,619 49, % Operating EBITDA margin -4.7% 27.6% 32.3pps 8.0% 32.0% EBIT (6,911) (2,331) (32,023) 26,779 EBIT Margin -22.5% -5.3% 17.2pps -29.8% 17.2% Net Finance Cost** (2,697) (6,902) (6,660) (16,132) Before tax Profit (9,608) (9,233) (38,683) 10,647 After tax Profit (7,276) (13,780) (36,796) 6,847 *Operating EBITDA adjusted for Ashaka delisting cost, Rights Issue Cost, restructuring and ERP implementation cost: (9M-17 N2.7b : Q3-17 N1.4b, 9M-16 Nil, Q3-16 Nil) **S,G&A** inclusive of ERP Implementation cost, Ashaka delisting, Rights Issue and other resturcturing costs **Net finance cost driven by finance charges on the shareholder loans & other borrowings SG& A expenses higher than LY, due to SAP implementation cost & training of users across the business Lafarge Africa Staff Unaudited Quarter 3 & 9 Months Results

23 Nigeria Operating EBITDA* 9M 2017 vs. LY In N B -17,1-5,0 6,1 1,6-4,3 66,3 49,9 8,6-6,3 OpEBITDA 9M 2016 Volume Price Inflation and FX Distribution Energy Raw Materials & Others Fixed costs OpEBITDA 9M 2017 *Operating EBITDA adjusted for Ashaka delisting cost, Rights Issue Cost, restructuring and ERP implementation cost Unaudited Quarter 3 & 9 Months Results

24 South Africa Operations Q M Variance Variance NGN Million Net Sales 22,977 24,638 7% 53,638 68,058 27% Operating EBITDA* 1,064 (5,498) 1,573 (4,593) Operating EBITDA margin 4.6% -22.3% -26.9pps 2.9% -6.7% -9.7pps EBIT (441) (7,385) (950) (8,377) EBIT Margin -1.9% -30.0% -28.1pps -1.8% -12.3% -10.5pps Net Finance Cost** (138) (449) (735) (1,176) Before tax Profit (576) (7,834) (1,684) (9,553) After tax Profit 120 (5,015) (606) (5,910) *Operating EBITDA adjusted for ERP Stabilization project cost & inventory write-off: (9M-17 N0.88b : Q3-17 N0.88b, 9M-16 Nil, Q3-16 Nil) SA operations adversely impacted by: Operational challenges at our Lichtenburg plant On-going stabilization of SAP system implemented in January Lafarge Africa Staff Unaudited Quarter 3 & 9 Months Results

25 Operating EBITDA to Net Income Q M 2017 NGN Million Variance Variance Operating EBITDA* (377) 6,700 10,192 45,279 Depreciation & Amortisation (4,642) (4,802) (12,288) (16,174) - One-Offs Adjustment - (2,280) - (3,614) Current Operating income (5,019) (383) (2,096) 25,491 - Net other operating income /(expenses) (2,332) (9,333) (30,876) (7,089) - EBIT (7,351) (9,716) (32,972) 18,402 Net finance costs (2,836) (7,351) (7,395) (17,309) - Share of net income from associates Profit before Tax (10,183) (17,067) (40,368) 1,094 - Income tax 3,027 (1,728) 2,965 (156) - Profit after Tax (7,156) (18,794) (37,402) *Operating EBITDA adjusted for Ashaka delisting cost, Rights Issue Cost, restructuring and ERP implementation cost, South Africa System stabilization Project & Inventory write-off: (9M-17 N3.6b : Q3-17 N2.3b, 9M-16 Nil, Q3-16 Nil) Unaudited Quarter 3 & 9 Months Results

26 Net Financial Debt Dec 2016 to September 2017 Net Debt (N B) * * South Africa debt included in Net debt position Net debt position in Nigeria is N227 Billion (Net borrowing is largely 220mUSD converted from Quasi equity to loan) Nigeria position is expected to improve to <N200 Billion by year-end after the Right Issue * Excl Quasi Equity Instrument Unaudited Quarter 3 & 9 Months Results

27 Business Outlook

28 Outlook Cement market demand in Nigeria is expected to recover slightly in Q4 2017, to close the year -14% to -12%, lower than LY : Overall market rebound expected in Q Sizeable infrastructure investments are foreseen to be initiated and executed from Q Current low consumption per capita Industrial & operational performance expected to remain stable in Nigeria Stable pricing environment in Nigeria for Q and Volume trend to reflect seasonality effect On-going Logistic and Industrial Performance Improvement plan to deliver Target EBITDA margin in mid-30s is expected to be achieved Cement market in South Africa is expected to close the year lower, however: Industrial stabilization team in place to ensure plant is operational Cost containment programs in place SAP stabilization process in place, with learning points established for other entities Financial restructuring to be completed by year-end Rights issue of N131,7 billion at a price of 42,5N/share to be concluded byyear-end Commercial Paper of N25 billion to be completed beginning of November Net Debt position for Nigeria to improve, to close the year at < N200 Billion Expansion plans on track Ashaka power plant on track to be delivered in Q

29 Lafarge Africa: Key Investment Highlights Vertical Integration The only vertically-integrated Cement Company in Nigeria Growing Aggregates & Concrete penetration Diversified Cement Product Line Strong Credit Ratings Lafarge Africa is rated by two leading credit rating agencies: A+ by Global Credit Ratings Co, A+ by Agusto a& Co Consistent Profitability Strong track record of profitability with an annual CAGR of 33.5% from N8.5 billion in 2011 to N28.6 billion in Strong H recovery with N19.7 billion net income from operating loss in 2016 given the impact of naira devaluation Strong Industry Demand Drivers Resilient demand drivers for Building Materials including the N117bn Marshall Plan for the North East, and FGN infrastructure budgetary spend Access to Group Expertise Leverages on the expertise of the Lafarge Holcim Group, the Global Industry Leader, with access to: World-Class R&D facilities (Lyon, France) Global Best Practices, and Wide product portfolio/knowledge Cost and Revenue Synergies Business reorganization to produce cost and revenue synergies, driven by: Optimising route to market, Supplier Rationalisation, Fixed-Cost Dilution from Mfamosing 2, etc. Strong Presence in Africa Strong presence in Africa s two largest economies Nigeria and South Africa Regional Diversification Regional diversification strengthening competitive position and mitigating country-specific cycles 29

30 Rights Issue Transaction Summary

31 Right Issue terms Offering structure Listing of new ordinary shares on the Nigerian Stock Exchange Issuer is Lafarge Africa Plc. Offering size N131,65bn through an offering of 3,098 million new ordinary shares Subscription price N42,5 per new shares - discount of 17,5% to closing price of 22 nd Sept Subscription ratio Subscription ratio of 5 rights for every 9 shares held as at November 1, 2017 Use of proceeds Key dates Any convertible loan; shareholder loan or any other loan facility is due from the company are authorized to apply for any shares subscribed for. The rights issue is being undertaken to de-leverage Lafarge Africa s balance sheet, finance working capital and the expansion of operations Qualification Date: November 1, 2017 Rights trading and subscription period : November 24, 2017 to December 15, 2017 Issuing Houses Lead Issuing House : Chapel Hill Denham Advisory Ltd Joint Issuing House : Standard Chartered Capital & Advisory Nigeria Ltd 31

32 Rights Issue Impact on Lafarge Africa Rights Issue Impact Debt restructuring through the rights issue reduces the impact FX volatility has on Lafarge Africa s earnings Greater headroom to raise additional capital to further capitalize on the emerging opportunities in Africa. Cashflow preservationreduction in interest expense Short term liquidity support through financing working capital Deleveraged Balance Sheet Headroom for Additional Capital Cashflow Preservation Improved Liquidity 32

33 Lafarge Africa Trading Performance The volume weighted average price provides a sense of trading momentum on the stock The recent trading performance of Lafarge on the NSE will be a core benchmark for shareholders considering participation in the Rights Issue 120, ,000 80,000 60,000 40,000 20,000 0 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Volume Traded Price 30 day VWAP 60 day VWAP 90 day VWAP 120 day VWAP 6 month VWAP 1 year VWAP Key statistics (as at 17 October 2017) Description # Share Price (N) Shares outstanding ( billion) 5.49 Market cap (N billions) P/E 4.37 P/BV (2016) 3.99 Free float liquidity 35.76% VWAP analysis High Share price Low (N) VWAP (N) (N) volatility 30 day % 60 day % 90 day % 120 day % 6 month % 1 year % Market cap (N billion) RI Size (N billion) RI size as % of Market Cap 42.83%

34 Lafarge Africa Shareholder Options 5 for 9 rights issue Investor holding 9 shares receives 5 rights Subscription Ratio: Existing shareholders receive subscription rights based on their shareholding. 5 for 9 means shareholder receives 5 rights for every 9 shares they own Accepts and Subscribes to 5 new shares at the rights price Sells the 5 rights on the NSE to a new investor Shareholder earns premium on rights traded New investor subscribes for 5 new shares at rights price No action taken Unsubscribed shares allotted to shareholders who applied for additional rights Oversubscription: When existing shareholders apply for additional rights above and beyond all the shares available in the issue Partial subscription: When a shareholder takes up some but not all of their provisional rights allocation Renunciation: When a shareholder does not take up their rights Issuer allots 5 new shares Trade in Rights: When a shareholder trades their right to another investor

35 Ownership Structure Before & After Rights Issue Before Rights Issue After Rights Issue LafargeHolcim Group 1 Minority Shareholders LafargeHolcim Group 2 Minority Shareholders 73% 27% Lafarge Africa Plc Lafarge Africa Plc 100% 100% 100% 86.51% 100% 100% 100% 100% Egyptian Cement Holding BV. Lafarge ReadyMix Nigeria Ltd AshakaCem Atlas Lafarge South Africa Holding West Operations East & West Operations Lafarge ReadyMix Nigeria Ltd AshakaCem Lafarge South Africa Holding 100% 72.4% 72.4% Nigeria Cement Holding BV. CBI Ghana 35% South African Operations CBI Ghana 35% South African Operations 100% UniCem 1 Related entities before Ashaka Scheme of Arrangements ( Court Order Meeting October 23 rd, 2017) 2 Ownership will depend on subscription during the rights issue Subsidiary Division 35

36 Indicative Transaction Timetable Activity Target Dates Acceptance List Opens/ Trading in Rights begins 24 November 2017 Acceptance List Closes/ Trading in Rights end 15 December 2017 Receive SEC clearance of allotment 5 January 2018 Pay net proceeds of the Rights Issue to Lafarge Africa 9 January 2018 Publish Allotment announcement 12 January 2018 Timeline is indicative and subject to timely receipt of regulatory approvals 36

37 Thank You

38 Appendix

39 Lafarge Africa Plc: Board of Directors Chairman Mobolaji Balogun, Esq. is an Economics (Honours) graduate of the London School of Economics and the Chief Executive Officer of Chapel Hill Denham Director Mr. Jean-Carlos Angulo joined Lafarge in 1975 as Project Manager and later Projects Director. He was President of the Cement operations in Western Europe and Morocco. He was an Executive Vice President with responsibilities for Lafarge Group operations in several countries Vice-Chairman Mr. Guillaume Roux, Esq is a graduate of Institute d Etudes Politiques, Paris. He joined the Lafarge Group in 1980 as an Internal Auditor. He was the former Group MD/CEO of Lafarge Africa Director Ms. Sylvie Rochier she started her career with Lafarge where she held senior management positions such as Controller and Finance Director for Lafarge Materiaux de Specialities. She is presently the Group Senior Vice-President, Finance. Group MD/CEO Michel Puchercos is a graduate of Ecole Polytechnique and Ecole Nationale du Genie Rural, des Forets Nationale Superieure des Mines de Paris/France. He was previously president and CEO of Lafarge South Korea Japan Director Mrs. Adenike Ogunlesi is the founder of Ruff n Tumble, a children s clothing line and has a reputation for being one of the best manufacturers of children s clothing in Nigeria. Director Dr. Shamsuddeen Usman CON, OFR is a Nigerian economist and banker. He is currently the CEO of SUSMAN and Associates. He is a past Minister of National Planning Director Mrs. Elenda Ohirenua Giwa-Amu is currently the CEO, Chandrea Lifestyle Ltd. She also previously headed Private Banking in Chartered Bank, now Stanbic IBTC Director Dr. Adebayo Jimoh Esq. holds an MBA degree from Enugu State University of Science. A Fellow of the Nigeria Institute of Management, Marketing of Nigeria. He was previously Executive Director, Group Operations of John Holt Plc Director Alhaji Umaru Kwairanga is an Investment Banker and a Chartered Stockbroker. He is currently a member of Presidential Advisory Council, Nigeria Industrial Revolution Plan, Chairman of AXA Mansard Pensions Limited, Council Member of the Nigerian Stock Exchange, and a former Chairman of Ashakacem Plc Director Mr. Adebode Adefioye is a graduate of the University of Lagos with a Master of Science degree. He is the CEO of IBK Services Limited and Director at Wema Bank Plc and Ceerem Investment Nigeria Ltd. Ag. Company Secretary & Legal Director Mrs. Edith Onwuchekwa is a graduate of Law from the University of Uyo, Akwa Ibom State. She joined Lafarge Cement WAPCO Nigeria in April She is currently the acting Chairman of Ashakacem Plc and was appointed acting Company Secretary of Lafarge in June

40 Lafarge Africa Plc: Key Management Michel Puchercos Group MD/CEO Michel Pucheros was appointed on 16th March 2016 He was the past MD at Bamburi Cement from September 2005 to 2009 and then appointed President and CEO of Lafarge South Korea Japan Operations Abdel-lleh Chouar Industrial Director Cement Abdel-Ileh holds MBA from Georgetown University, Washington D.C. and a post graduate degree in Financial Risks Management with honours He started his career as a Project Engineer with Lafarge in 1998 and has held various key positions in operations including Production Manager and Plant Manager. In 2012, he became the H&S Director, a role he held until 2015 when he was appointed Director of Concrete Operations for Lafarge Morocco Bruno Bayet Chief Financial Officer Bruno holds a Business Engineering degree from Universite Catholique de Louvain-la-Neuve in Belgium, and completed his Master s in Business Administration at Georgetown University, specialising in Financial Risks Management Mr. Bayet joined Lafarge in 2013 as a director in AshakaCem Plc and added the role of Chief Financial Officer in September 2014 Marlene Kiniffo-Zounon Sales Director Marlene has a BA, International Business and Marketing from NEGOCIA ACI (Academie Commerciale Internationale) in Paris as well as a General Management Progam from Harvard Business School She joined the organisation in January 2016 as Sales Director, Key Accounts & IHB Precast Segment Bruno Hounkpati Logistics Director Bruno is a Mechanical Engineer graduate, a safety professional and an alumnus of London Business School. He joined Lafarge in the Middle East and Africa Regional office in Cairo and held various senior management positions in Egypt, France, Malawi, and Nigeria Vipul Agrawal Marketing Director Lolu Alade-Akinyemi Procurement Director He has over 35 years work experience spanning several countries and several industries. He joined Lafarge India and later moved into East Africa on Technical Partnership support covering countries like Kenya, Tanzania and Malawi. Vipul joined Unicem in 2006 and worked as Marketing & Technical Assistance capacity on the Excom of the BU, before the eventual merger in He was appointed Acting Marketing Director in May 2016 He holds a Master of Business Administration from Heriot-Watt University, Edinburgh and a Bachelor of Arts in Economics from the University of Essex, Colchester. Lolu joined Lafarge as the CFO for Lafarge WAPCO. Fidelia Osime Organization and Human Resource Director Folashade Ambrose Medebem Communications, Public Affairs & Sustainable Development Director She holds several degrees including M.Sc (Sociology) and Masters in Business Administration She joined Lafarge in December 2010 and prior to this was General Manger, HR She holds a Bachelor of Accounting degree from London Guildhall and a Masters of Business Administration from the Open University, Milton Keynes, UK She was appointed as Director of Communications, Public Affairs & Sustainable Development, Lafarge Africa Plc in October

41 Lafarge Africa Plc: Key Management (cont d) Graeme Bride Health and Safety Director Graeme has a Mechanical Engineering degree from University of Birmingham and an MBA from Manchester Business School. He has over twenty years industrial experience in the power, sugar and cement business. The last thirteen of these have been spent in Asia and Africa in Cement. In Lafarge, he has held manufacturing roles in plant line management, head office and regional coordination. Rabiu Umar Managing Director, Ashaka Rabiu is a graduate of Accounting from Bayero University Kano as well as General Management Program from Harvard Business School He joined Lafarge Nigeria in June 2014 as the Energy and Power Director, and is currently the Managing Director Ashaka Cem Edith Onwuchekwa Legal & Public Affairs Director Edith is a graduate of Law 1997 (LLB) She is a member of the Institute of Chartered Secretaries and Administrators UK She joined Lafarge WAPCO in 2005 and later became Company Secretary/Legal Adviser of the Company in 2008 In 2011 moved to the Regional office in Cairo, Egypt as Legal Counsel Sub-Saharan Africa and currently Lafarge Africa General Counsel/Public Affairs Director Raymond Chambers Head of Aggregates & Concrete Raymond joined LafargeHolcim Group Qatar- the Qatar Readymix Group, as the Company Manager of both the quarry company and the trading / transport company. Raymond was then promoted to the role of Industrial Manager for the aggregates business in South Africa. Prior to this, he worked for Hanson Aggregates (now part of the Heidelberg Cement Group) for 17 years in a range of line management roles Helmut holds an Executive MBA (2006) from California State University Helmut Korak Country Security Manager He started his professional career as a military infantry officer in Austria which included a number of command and staff positions at home as well as overseas. Mr Korak resigned from the armed forces in 2001 and became a diplomat appointed to the Organization for Security and Co-operation in Europe He joined Lafarge Africa in July

42 Lafarge Africa: Key Financial Information In Millions of Naira Lafarge Africa (UNICEM consolidated) Lafarge Africa (UNICEM partially consolidated) Lafarge WAPCO Income Statement Revenue 219, , , ,073 87,965 Cost of Sales (179,052) (184,703) (177,783) (138,754) (55,565) Gross Profit 40,661 82,531 83,027 67,319 32,399 EBITDA 25,924 67,794 69,475 55,662 31,661 EBITDA Margin 12% 25% 27% 27% 36% EBIT Pro forma (10,978) 52,900 54,000 45,400 26,192 One off expenses - (14,600) (5,700) - - Profit Before Taxation Pro Forma Profit Before Tax Margin Pro Forma Profit for the Year Pro Forma Profit Margin Pro Forma (22,818) 43,900 46,000 42,611 21,283 (10%) 16% 18% 21% 24% 16,898 41,600 39,200 34,716 14,712 16% 16% 15% 17% 17% 42

43 Lafarge Africa: Key Financial Information (cont d) In Millions of Naira Lafarge Africa (UNICEM consolidated) Lafarge Africa (UNICEM not consolidated) Lafarge WAPCO Balance Sheet Total Assets 502, , , , ,949 Total Debt 127, , ,137 28,277 37,305 Cash and cash equivalents 25,501 16,493 20,330 33,896 8,892 Shareholders Funds , , ,025 68,359 Cash Flow Cash Flow from Operations 10,663 57,867 57,817 48,731 24,969 Capex Pro forma (22,164) (13,700) (9,000) (7,082) (5,748) Capex UNICEM line II (19,200) (46,300) (16,800) - - Free Cash Flow 1 (30,701) (1,170) 32,090 41,649 19, Calculated as Cash Flow from operations less Capex 43

44 Contact Us 27B Gerrard Road Ikoyi Lagos Telephone: st Floor, 45 Saka Tinubu Street P.O. Box Victoria Island Lagos Telephone: /4 142 Ahmadu Bello Way Victoria Island Lagos Telephone: Wole Adeleke wole.adeleke@lafargeholcim.com Mobile: Kemi Awodein kawodein@chapelhilldenham.com Mobile: Yemisi Deji - Bejide Yemisi.deji-bejide@sc.com Mobile: Damilola Oni Damilola.oni@lafargeholcim.com Mobile: Michelle Akinrinade makinrinade@chapelhilldenham.com Mobile: Yetunde Falore Yetunde.falore@sc.com Mobile:

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