Lafarge Africa Plc Unaudited Financial Statements 30 Sep 2018

Transcription

1 Unaudited Financial Statements 30 Sep

2 Contents Directors' and Other Corporate Information 2 Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income 5 Consolidated and Separate Statements of Financial Position 6 Consolidated and Separate Statements of Changes in Equity 7 Consolidated and Separate Statements of Cash Flows 9 Notes to the Consolidated and Separate Financial Statements 10 2

3 Directors' and Other Corporate Information registration number RC 1858 Directors Mr. Mobolaji Balogun Ms. Sylvie Rochier Mr. Michel Puchercos Mr. Adebode Adefioye Dr. Shamsuddeen Usman CON, OFR Mrs. Elenda Giwa-Amu Mrs. Adenike Ogunlesi Ms. Geraldine Picaud (Appointed 7th April ) Mr. Christof Hassig (Appointed 7th April ) Mr. Grant Earnshaw (Appointed 7th April ) Mr Rossen Papazov (Appointed 21st July ) Mr. Jean-Carlos Angulo (resigned w.e.f. 20th July ) Mr. Guillaume Roux (resigned w.e.f. 6th April ) Dr. Adebayo Jimoh (resigned w.e.f. 6th April ) Alhaji Umaru Kwairanga (resigned w.e.f. 6th April ) Chairman Vice Chairman Managing Director/CEO Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director secretary Mrs. Adewunmi Alode Independent auditors KPMG Professional Services KPMG Tower, Bishop Aboyade Cole Street, Victoria Island, Lagos Registered office Lafarge Africa Plc No 27B, Gerrard Road, Ikoyi Lagos Registrar Cardinal Stone (Registrars) Limited [formerly City Securities (Registrars) Limited] No 358, Herbert Macaulay Road, Yaba, Lagos Principal bankers Access Bank Plc Citibank Nigeria Limited Diamond Bank Plc Ecobank Nigeria Limited First Bank of Nigeria Limited Guaranty Trust Bank Plc Standard Chartered Bank Plc Stanbic IBTC Bank Limited United Bank for Africa Plc Wema Bank Plc Zenith Bank Plc 3

4 Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income for the year 30 Sepember * 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ Notes Revenue 6 72,008,596 68,828, ,300, ,668,593 42,307,207 19,311, ,756,931 71,402,332 Cost of sales 7 (54,875,664) (55,366,753) (178,205,218) (165,757,215) (27,879,268) (11,773,752) (90,215,957) (41,175,440) Gross profit 17,132,932 13,461,897 56,094,904 57,911,379 14,427,939 7,538,101 52,540,974 30,226,892 Selling and marketing expenses 8 (1,684,923) (806,160) (4,454,909) (2,983,957) (631,038) (143,950) (1,298,934) (921,780) Administrative expenses 9 (12,670,112) (13,150,289) (32,626,415) (29,166,609) (8,024,383) (3,082,189) (21,498,436) (7,967,629) Other income 10 21,380 31, ,018 2,930,647 (9,625) (81,310) 86,669 2,945,798 Other operating expenses 11 (4,211) 1,429 (9,753) (13,848) (1,232) - (5,252) - Operating profit 2,795,066 (461,670) 19,131,845 28,677,612 5,761,661 4,230,652 29,825,021 24,283,281 Finance income , ,161 1,446, , ,556 8,095,327 1,221,957 19,037,113 Finance costs 11 (11,212,513) (16,980,339) (34,928,321) (28,512,485) (11,581,552) (7,551,100) (33,761,831) (21,657,727) Share of loss from associates accounted for using the equity method (10,824) - (10,824) (Loss)/Profit before tax 13 (8,015,171) (17,066,848) (14,360,678) 1,093,559 (5,483,335) 4,774,879 (2,714,853) 21,662,667 Income tax (expense)/credit 12 1,544,434 (1,727,637) 3,987,654 (155,654) 1,473,233 (2,157,702) 795,632 (6,334,018) (Loss)/Profit after tax (6,470,737) (18,794,486) (10,373,024) 937,905 (4,010,102) 2,617,177 (1,919,221) 15,328,649 Earnings per share attributable to the ordinary equity holders of the : Basic earnings per share (Naira) 24 (75) (360) (120) 10 (46) 50 (22) 291 4

5 Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income for the year 30 Sepember * 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ Notes (Loss)/Profit after tax (6,470,737) (18,794,486) (10,373,024) 937,905 (4,010,102) 2,617,177 (1,919,221) 15,328,649 Other comprehensive income: Items that may be reclassified to profit or loss: Exchange differences on translation of foreign operations ,150 (2,344,324) (507,861) 12,548, ,150 (2,344,324) (507,861) 12,548, Items that will not be subsequently reclassified into profit or loss: Remeasurements of defined benefit (4,451) 235, obligations Income tax relating to these items 12 (33) (41) 1,249 (58,384) (3,202) 177, Other comprehensive income for the year, net of tax 137,232 (2,344,180) (511,063) 12,725, Total comprehensive (loss)/income for the year (6,333,504) (21,138,666) (10,884,086) 13,663,847 (4,010,102) 2,617,177 (1,919,221) 15,328,649 (Loss)/Profit attributable to : - Owners of Lafarge Africa Plc (6,470,737) (19,223,102) (10,373,024) 509,289 (4,010,102) 2,617,177 (1,919,221) 15,328,649 - Non-controlling interests , , (6,470,737) (18,794,486) (10,373,024) 937,905 (4,010,102) 2,617,177 (1,919,221) 15,328,649 Total comprehensive (loss)/income for the year is attributable to: - Owners of Lafarge Africa Plc (6,333,504) (21,330,224) (10,884,086) 13,235,231 (4,010,102) 2,617,177 (1,919,221) 15,328,649 - Non-controlling interests - 191, , (6,333,504) (21,138,666) (10,884,086) 13,663,847 (4,010,102) 2,617,177 (1,919,221) 15,328,649 *Due to the merger of the with two subsidiaries and the liquidation of two subsidiaries into the in December, the numbers are those of the merged and liquidated entities while the numbers as of Sept. are those of the prior to the merger and liquidation. The accompanying notes and significant accounting policies on pages 10 to 25 form an integral part of these financial statements. 5

6 Consolidated and Separate Statements of Financial Position as at 30 September * 30/09/ 31/12/ 30/09/ 31/12/ Notes ASSETS Non-current assets Property, plant and equipment ,518, ,651, ,227, ,872,779 Intangible assets 15 6,064,001 2,634,326 2,759,109 - Investment in subsidiaries ,088, ,088,406 Other financial assets 17 2,741,918 1,582,622 2,741,918 1,556,738 Other assets 19 18,612,631 20,803,113 16,113,033 14,984,747 Deferred tax assets ,346,858 7,951,595 17,420,793 16,333,384 Total non-current assets 426,284, ,623, ,350, ,836,054 Current assets Inventories 20 58,904,337 58,266,466 39,126,682 39,057,831 Trade and other receivables 21 29,580,209 25,110,116 16,617,858 15,930,970 Current tax asset , , Other assets 19 11,959,368 15,162,092 10,354,796 10,679,505 Other financial assets , , , ,635 Derivative assets 18 10, ,091 10, ,091 Cash and cash equivalents 22 17,520,017 50,414,757 15,709,381 41,698,854 Total current assets 119,610, ,103,857 82,045, ,333,886 Total assets 545,894, ,727, ,396, ,169,940 LIABILITIES Non-current liabilities Loans and borrowings ,406,550 68,715, ,718,586 64,900,757 Deferred tax liabilities ,463, Provisions 30 3,772,118 3,472, , ,320 Deferred revenue 31 1,435,418 1,518,467 1,435,418 1,518,467 Employee benefit obligations 5,204,333 4,916,931 1,851,293 1,616,733 Total non-current liabilities 187,818,419 80,086, ,973,103 68,945,277 Current liabilities Trade and other payables ,511, ,000,180 83,520,912 69,930,054 Loans and borrowings 29 77,117, ,831,582 89,426, ,724,579 Current tax liabilities ,330,624 3,251,525 1,254,036 1,544,949 Provisions ,471 1,166, , ,268 Derivative liabilities ,570 4,212, ,570 4,212,406 Deferred revenue , , , ,732 Bank overdrafts ,981,610 31,081,780 13,636,010 15,037,780 Total current liabilities 225,515, ,654, ,115, ,455,768 Total liabilities 413,333, ,740, ,088, ,401,045 EQUITY Share capital ,336,714 2,787,888 4,336,714 2,787,888 Share premium ,608, ,272, ,608, ,272,108 Retained earnings 136,871, ,257,556 86,041, ,970,988 Deposit for shares ,416, ,416,872 Foreign currency translation reserve 27 9,427,782 9,935,643 39,103 39,103 Other reserves arising on business combination and re-organisations 28 (368,683,312) (368,683,312) (191,718,064) (191,718,064) Total equity 132,561, ,986, ,308, ,768,895 Total equity and liabilities 545,894, ,727, ,396, ,169,940 The accompanying notes and significant accounting policies on pages 10 to 25 form an integral part of these financial statements. These financial statements were approved and authorised for issue by the board of directors on 16 October and were signed on its behalf by: Mobolaji Balogun Michel Puchercos Bruno Bayet Chairman Managing Director Chief Financial Officer FRC/2013/CISN/ FRC//IODN/ FRC/2014/MULTI/

7 Consolidated and Separate Statements of Changes in Equity for the year ember Other reserves arising Share capital Share premium Retained earnings Deposit for shares Foreign currency translation reserve on business combination and reorganisations Total Non-controlling interests Total equity Notes N'000 Balance at 1 January 2,740, ,528, ,842,886 - (8,660,486) (256,899,951) 57,551, ,401, ,952,548 (Loss)/Profit for the period 1st Jan Sep , , , ,905 Exchange differences on translating foreign 12,548,396 operations 12,548,396 12,548,396 Remeasurement gain of defined benefit 177,546 obligation, net of tax 177, ,546 Dividends paid to parent (4,177,358) (4,177,358) (41,863) (4,219,221) Dividends paid to non controlling interest (1,577,413) (1,577,413) (1,577,413) Net movement of Quasi-Equity loan (27,380,679) (27,380,679) (27,380,679) Issue of shares 4, , , , % of Ashaka equity taken over 1,376,855 (1,180,789) 196,066 (1,405,632) (1,209,566) ECH Equity taken over - - Quasi Equity Repaid - (51,416,749) (51,416,749) Balance at, Attributable to equity holders of the parent 2,745, ,051,678 71,771,126-3,887,910 (258,080,740) 38,375, ,965, ,340,879 Profit for the period 1 Oct. - ember (35,518,696) (20,618) (35,518,696) (35,539,314) Remeasurement gain of defined benefit 45,357 obligation, net of tax 45,357 45,357 Exchange differences on translating 6,047,733 foreign operations 6,047,733 6,047,733 Deposit for shares 130,416, ,416, ,416,872 Movement in reserves arising from reorganisation 123,959,769 40,729, ,689, ,689,092 Net movement of Quasi-Equity loan (199,453,879) (199,453,879) (199,453,879) Quasi-equity loan taken over by Parent - (87,944,888) (87,944,888) Acquisition of NCI in Ashaka 42,631 4,220, ,121,984 52,385,045 (51,000,142) 1,384,903 Total transaction with owners 42,631 4,220,430 88,486, ,416,872 6,047,733 (110,602,572) 118,611,524 (138,965,648) (20,354,124) Balance at ember 2,787, ,272, ,257, ,416,872 9,935,643 (368,683,312) 156,986, ,986,755 At 1 January 2,787, ,272, ,257, ,416,872 9,935,643 (368,683,312) 156,986, ,986,755 (Loss)/profit for the year - - (10,373,024) (10,373,024) - (10,373,024) Exchange differences on translating foreign operatio - - (3,202) - (507,861) - (511,063) - (511,063) Total comprehensive income for the period - - (10,376,226) - (507,861) - (10,884,086) - (10,884,086) Transaction with owners: ,650, ,650,253 1,548, ,101,427 Issue of shares Deposit for shares now allotted (130,416,872) - - (130,416,872) - (130,416,872) Dividends paid to parent (9,928,888) (9,928,888) - (9,928,888) Dividends paid to non controlling interest 32.2 (3,081,255) (3,081,255) (3,081,255) Right issue costs - (1,764,769) (1,764,769) (1,764,769) Total transaction with owners 1,548, ,336,658 (13,010,143) (130,416,872) - - (13,541,530) - (13,541,530) Balance at. 4,336, ,608, ,871,187-9,427,782 (368,683,312) 132,561, ,561,138 The accompanying notes and significant accounting policies on pages 10 to 25 form an integral part of these financial statements. 7

8 Consolidated and Separate Statements of Changes in Equity for the year ember * Attributable to equity holders of the parent Foreign Share capital Share premium Retained earnings Deposit for shares currency translation reserve Other reserves arising on business combination and re-organisations Total equity Notes N'000 N'000 N'000 Balance at 1 January 2,740, ,528, ,825, ,094,143 Profit for 1 January - 30 June ,328, ,328,649 Other comprehensive income (Net of tax) Dividends paid to parent (4,177,358) (4,177,358) Dividends paid to non controlling interest (1,577,413) (1,577,413) Issue of shares 4, , ,112 Balance as at. 2,745, ,051, ,399, ,196,133 Loss for the period 1 Oct. - ember (28,552,275) (28,552,275) Other comprehensive income for the year, net of tax 124,065 39, ,168 Transaction with owners: Issue of shares 27 42,631 4,220, ,263,061 Deposit for shares ,416, ,416,872 Movement in reserves arising from re-organisation 7,735,815 7,735,815 Net movement of Quasi-Equity loan (199,453,879) (199,453,879) Total transaction with owners 42,631 4,220,430 (28,428,210) 130,416,872 39,103 (191,718,064) (85,427,238) Balance at ember 2,787, ,272, ,970, ,416,872 39,103 (191,718,064) 264,768,895 At 1 January 2,787, ,272, ,970, ,416,872 39,103 (191,718,064) 264,768,895 Loss for the year - - (1,919,221) (1,919,221) Other comprehensive income (Net of tax) Total comprehensive income for the period - - (1,919,221) (1,919,221) Transaction with owners: Issue of shares 23 1,548, ,101, ,650,253 Deposit for shares now alloted (130,416,872) - - (130,416,872) Right issue costs (1,764,769) (1,764,769) Dividends paid to parent 32.2 (9,928,888) (9,928,888) Dividends paid to non controlling interest (3,081,255) (3,081,255) Total transaction with owners ,548, ,336,658 (13,010,143) (130,416,872) - - (13,541,531) Balance at. 4,336, ,608,766 86,041,624-39,103 (191,718,064) 249,308,143 The accompanying notes and significant accounting policies form an integral part of these financial statements. 8

9 Consolidated and Separate Statement of Cash Flows for the year ember * 30/09/ 30 Sep.. 30/09/ 30 Sep.. Notes Cash flows from operating activities: (Loss)/Profit for the year (10,373,024) 937,905 (34,601,409) (1,919,221) 15,328,649 (13,223,626) Adjustments to reconcile (Loss)/Profit for the year to net cash flows: Depreciation, Amortisation & Impairment losses on PPE 14 16,829,966 16,054,236 22,181,159 12,514,879 4,123,907 16,304,267 Impairment losses on property, plant and equipment ,178, ,394,270 Amortization of intangible asset , , Impairment of intangible asset , Other non cash movements (204,353) (2,320,383) (1,262,945) (151,512) (2,294,412) (1,725,648) Operating Longterm receivables Net unrealized foreign exchange loss 3,922,916 4,410,348 1,677,899 3,562,842 4,861,674 1,416,442 Finance costs 11 27,542,398 18,321,168 29,740,993 25,804,348 16,741,418 28,956,601 Finance income 11, 10 (1,446,622) (1,012,556) (1,438,980) (1,221,957) (19,331,168) (1,107,476) Dividend income (2,003) (1,767) - (294,055) Share of loss from joint venture 10, , ,236 Income tax expense/(credit) 12.1 (3,987,654) 155, ,460 (795,632) 6,334,018 5,837,763 Minimum tax - 287, ,672 Provisions and net movement on employee benefits 29 (50,016) 1,036,947 (409,279) (317,256) 445,986 (408,231) Change in net working capital (998,076) (38,079,841) (42,516,757) 9,214,648 (28,225,188) (45,318,450) Cash flow (used in)/generated from operations 31,682,635 (496,521) (6,350,744) 46,691,139 (2,015,116) 3,231,765 Income taxes paid (1,711,844) (1,039,996) (772,057) (582,690) (44,534) (307,000) Net cash flow (used in)/generated from operating activities 29,970,791 (1,536,517) (7,122,801) 46,108,449 (2,059,650) 2,924,765 Cash flows from investing activities Acquisition of property, plant and equipment 14,15 (11,838,761) (7,396,122) (15,278,494) (5,896,619) (1,543,215) (10,360,055) Acquisition of intangible assets (1,246,218) (228,192) - - Interest received 10-1,380,523 1,049,045 Acquisition of subsidiary, net of cash acquired - (673,406) - (673,406) Finance income ,242 1,614, , ,627 - Dividend received from unlisted investments 10 2,003 1, Dividend received from subsidiaries ,055 Net movement in other financial assets 17 (1,159,296) (8,564,427) (1,158,701) (1,185,180) (1,146,194) Proceeds from sale of property, plant and equipment - 3,157,587 3,129,895-3,065,320 2,983,969 Net cash flow (used in)/generated from investing activities (13,390,030) (11,188,742) (12,826,608) (6,424,270) 2,396,732 (7,852,586) Cash flows from financing activities Interest paid 11, 28 (26,046,722) (12,238,253) (23,698,165) (21,904,127) (5,046,758) (18,739,561) Dividend paid to equity holders of the company 32.3 (8,764,009) (14,703,412) (14,703,412) (8,764,009) (14,703,412) (14,703,412) Dividend paid to Non Controlling Interest 32.3 (3,081,255) (1,619,276) (1,619,276) (3,081,255) (1,577,413) (1,577,413) Net proceed from right issue 37,005, ,005, Transaction cost on proposed rights issue 26 (487,926) - (574,743) (487,926) - (574,743) Cash received from futures contract 495,440-7,661, ,440-7,661,124 Proceeds from loans and borrowings ,302, ,714, ,099,306 81,008, ,266, ,310,535 Repayment of loans and borrowings 29 (128,175,435) (93,900,927) (138,981,397) (129,419,053) (96,942,643) (138,646,769) Net cash inflow generated from/(used in) financing activities (28,751,863) 5,252,998 23,183,437 (45,147,647) 1,996,540 20,729,761 Net increase/(decrease) in cash and cash equivalents (12,171,102) (7,472,261) 3,234,028 (5,463,468) 2,333,622 15,801,940 Cash and cash equivalents at the beginning of the year (1,148,616) (3,730,386) (3,730,386) 6,179,481 (7,783,026) (7,783,026) Cash and cash equivalents arising from merger (1,882,466) Effects of exchange rate changes on cash and cash equivalents (208,252) - (652,258) 290,981 43,033 Cash and cash equivalents at the end of the year 22.2 (13,527,970) (11,202,647) (1,148,616) 1,006,994 (5,449,404) 6,179,481 *Due to the merger of the with two subsidiaries and the liquidation of two subsidiaries into the in December, the numbers are those of the merged and liquidated entities while the numbers as of Sept. are those of the prior to the merger and liquidation. The accompanying notes and significant accounting policies on pages 10 to 25 form an integral part of these financial statements. 9

10 Notes to the Consolidated and Separate Financial Statements for the year 30 September 1 Business description Lafarge Africa PLC (Lafarge Africa) was incorporated in Nigeria on 26 February, 1959 and commenced business on 10 January The formerly known as Lafarge Cement WAPCO Nigeria Plc changed its name after a special resolution was passed by the shareholders at an Annual General Meeting held on Wednesday 9 July The change of name became effective with the acquisition of shares in Lafarge South Africa Holdings (Proprietary) Limited (LSAH), United Cement of Nigeria Limited (UNICEM), AshakaCem PLC (AshakaCem) and Atlas Cement Limited (Atlas). The s corporate head office is situated at 27B Gerrard Road, Ikoyi, Lagos which is same as the registered office. Lafarge Africa is in the business of manufacturing and marketing of cement and other cementitious products such as Ready-Mix Concrete, Aggregates, Fly-Ash etc. On July 15, 2016, Lafarge S.A. France and Holcim Limited, Switzerland two large global players merged to form LafargeHolcim based in Zurich, Switzerland. Consequently Lafarge Africa is now a subsidiary company of Lafarge Holcim. The term as used in this report refers to Lafarge Africa, its subsidiaries and investment in joint operations. The 's subsidiaries are as stated below; 30th Sept. 31st Dec. 30th Sept. Ashaka Cement PLC Lafarge Ready Mix Nigeria Limited Ashaka Cement PLC Lafarge Ready Mix Nigeria Limited Lafarge South Africa Holdings Lafarge Ready Mix Nigeria Limited (PTY) Limited Lafarge South Africa Holdings (PTY) Limited Ashaka Cement PLC Atlas Cement Limited. Egyptian Cement Holdings Lafarge South Africa Holdings (PTY) Limited These consolidated and separate financial statements cover the financial period from 1 January to.. The comparatives for have not been adjusted to suit the new and structure. 2 Summary of significant accounting policies The financial statements of Lafarge Africa Plc for the period. have been prepared in accordance with International Financial Reporting Standards ("IFRS") and interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS and the requirements of the Companies and Allied Matters Act CAP C.20 Laws of the Federation of Nigeria, 2004 and the Financial Reporting Council of Nigeria Act, Lafarge Africa Plc has consistently applied the same accounting policies and methods of computation in its interim condensed consolidated and separate financial statements as in its annual financial statements. None of the new standards, interpretations and ammendments, effective for the first time from 1st January, have had a material effect on the financial statements. 2 Basis of preparation i) Compliance with IFRS These interim condensed consolidated and separate financial statements of Lafarge Africa Plc have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all disclosures that would otherwise required in a complete set of financial statements and should be read in conjuction with annual report. The financial statements which were prepared on a going concern basis, were authorized for issue by the 's board of directors on 16 October,. The financial statements comprise the statement of profit or loss and other comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and the notes to the financial statements. ii) Basis of measurement The financial statements have been prepared in accordance with the going concern assumption under the historical cost concept except for the following: - non-derivative financial instruments initially at fair value and subsequently at amortized cost using effective interest rate - derivative financial instruments measured at fair value - defined benefit pension plans - plan assets measured at fair value - inventory - lower of cost and net realisable value The historical financial information is presented in Naira and all values are rounded to the nearest thousand (N'000), except where otherwise indicated. The accounting policies are applicable to both the and. 10

11 Notes to the Consolidated and Separate Financial Statements for the year ember 6 Revenue 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ N'000 N'000 Sale of goods 72,008,596 68,828, ,300, ,668,593 42,307,207 19,311, ,756,931 71,402,332 The following is an analysis of revenue by product: Cement 56,286,314 52,756, ,502, ,070,598 41,510,943 18,703, ,346,596 69,470,512 Aggregate and concrete 14,327,704 14,613,098 42,071,893 42,632, Admixtures and other products (Note 6 1,394,577 1,458,941 3,725,645 3,965, Revenue-Related party , ,528 2,410,335 1,931,820 72,008,596 68,828, ,300, ,668,593 42,307,207 19,311, ,756,931 71,402, Admixtures and other products represent revenue earned from the sale of fly ash, ready-mix pump sales and other mineral components from South African operations. 7 Cost of sales by nature 30/09/ 30/09/ 30/09/ 30/09/ - 30/09/ 30/09/ 30/09/ 30/09/ Variable costs (Note 7.1) 36,490,736 31,149, ,710,018 96,391,790 17,810,478 6,660,424 55,172,032 25,214,236 Production costs (Note 7.2) 5,122,914 8,665,450 17,373,192 24,139,920 2,529,591 1,164,886 7,773,733 3,543,461 Maintenance costs 3,364,311 5,450,257 13,217,637 14,467,545 1,408,461 1,143,992 5,746,725 3,739,253 Distribution costs 377,415 1,122,565 6,301,409 4,102, , ,379 2,900,738 1,006,089 Depreciation 5,154,685 5,277,613 16,154,718 15,915,637 4,205,403 1,370,042 12,379,493 4,059,447 Amortisation and impairment of 378,722 49, , , intangible assets General costs 3,986,880 3,651,344 12,009,965 10,619,940 2,254,013 1,070,029 6,243,236 3,612,954 54,875,664 55,366, ,205, ,757,215 11,773,752 90,215,957 41,175, Variable costs Distribution variable cost 13,219,175 15,321,782 42,243,529 41,715,569 6,623,452 2,367,655 21,652,359 9,548,730 Gas 6,000,353 5,028,479 19,139,915 16,995,933 3,316,250 1,548,162 11,564,078 6,079,532 Power 4,843,819 4,494,734 14,461,151 15,241,696 2,661,864 1,466,316 8,380,340 6,772,147 Raw materials and consumables 12,427,389 6,304,930 36,865,423 22,438,592 5,208,912 1,278,291 13,575,255 2,813, Production costs 36,490,736 31,149, ,710,018 96,391,790 17,810,478 6,660,424 55,172,032 25,214,236 Included in the production costs are personnel expenses, by-products costs, inventory write-offs and electrical energy expenses. 8 Selling and marketing expenses 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ Advertising expenses 375,186 (73,990) 602, , ,186 67, , ,038 Campaign and innovation expenses (164,292) 90, , , ,419 90, , ,111 Other selling and marketing expenses 1,474, ,692 3,655,220 2,480, ,433 (13,520) 499, ,631 1,684, ,160 4,454,909 2,983, , ,950 1,298, ,780 9 Administrative expenses by nature 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ Administrative expenses* 8,943,405 10,815,059 23,965,981 21,938,045 6,045,416 2,314,187 16,207,451 5,586,796 Depreciation 269,375 44, , ,599 49,709 19, ,386 64,460 Technical service fees 3,457,332 2,291,215 7,985,186 7,089,965 1,929, ,076 5,155,599 2,316,373 12,670,112 13,150,289 32,626,415 29,166,609 8,024,383 3,082,189 21,498,436 7,967,629 *During, Lafarge Africa Plc modified the classification of bank charges to be consistent with the 's policy. Comparative amounts in the statement of profit or loss were reclassified for consistency. As a result, N270 million for the and N116 million for the were reclassified from administrative expenses to finance costs. 11

12 Notes to the Consolidated and Separate Financial Statements for the year ember 9.1 Technical service fees Lafarge Africa Plc has a technical service agreement with Lafarge S.A., France, a related party which relates to Industrial Franchise. This agreement has been registered with the National Office for Technology Acquisition and Promotion (NOTAP) in Nigeria and is computed as 3.5% of net sales. 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 10 Other income** Gain on disposal of property, plant and equipment (Note 10.1) - 44,552-2,416, ,366,990 Government grants Scrapped and other miscellaneous income (Note 10.2) (8,644) (46,933) 97, ,128 (9,625) (86,509) 86, ,753 Write back of impairment of trade - 28, ,021 receivables 19,377 (2,381) 126,015 2,846,524 (9,625) (86,509) 86,669 2,651,743 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ Investment income Dividends received from subsidiaries (Note 10.3) - 59,925-82,458-5, ,055 Dividend received from unlisted investments (Note 10.4) 2,003 (26,091) 2,003 1, ,003 33,834 2,003 84,124-5, ,055 Total net Other Income: 21,380 31, ,018 2,930,647 (9,625) (81,310) 86,669 2,945, Gain on disposal of property, plant and equipment In prior year, there was a gain on disposal of the s Property, plant and equipment (Elephant Cement House Building) located in Alausa, Ikeja, to the Lagos State Government after occupying the building for over two decades. The total proceed from the disposal amounted to N3.1 billion. ### Scrapped and other miscellaneous income This comprises of the total income earned on miscellaneous activities not related to cementitious products including sale of scrap and product shortage recoveries (haulers) Dividend received from subsidiaries Prior year figure represents dividend received from AshakaCem Plc (:100% holding, 2016:84.97% holding) Dividend received from unlisted investments This represents dividend received by Lafarge South Africa holdings (PTY) Limited on its unlisted investments. 11 Other operating expenses** 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ Impairment of other receivables - (1,441) - (1,441) Impairment of trade receivables (1,522) 4, ,020 - Other expenses 5, ,733 15,289 1,232-1,232-4,211 (1,429) 9,753 13,848 1,232-5,252 - ** Previously included in other income/operating expenses is net foreign exchange loss which are now reported as part of finance costs. As a result, 9.9bn and N4.8billion has been reclassified for the and respectively. 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 11 Finance income and costs a) Finance income: Interest income on current accounts 60, , , , ,970 7, ,644 49,013 Other finance income 73,119 35, , ,685 73,119 89, , ,685 Interest income on current accounts 133, , , , ,089 96, , ,698 Interest income from Short term fixed deposits 195, ,598 1, Interest on loan receivable 84, , , ,682 70,959 7,998, ,625 18,878, , ,161 1,446, , ,556 8,095,327 1,221,957 19,037,113 12

13 Notes to the Consolidated and Separate Financial Statements for the year ember 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ b) Finance costs: Interest on bank overdraft (601,255) (1,812,598) (2,090,257) (2,710,219) (225,324) (1,408,074) (864,782) (1,408,074) Interest on borrowings (Note 29 b) (7,460,192) (5,715,951) (23,502,117) (15,239,412) (7,286,159) (5,572,854) (23,352,841) (15,227,709) Unwinding of discount on provisions (Note 30.1) 1,488 (47,408) (43,293) (69,016) - (26,149) - (26,149) Interest cost on employee's long service award (Note 32.1) (79,329) (124,767) (172,938) (124,767) (59,102) (79,486) (129,040) (79,486) Interest cost on defined benefit (Note 3 (117,898) (59,085) (307,671) (177,754) (47,858) - (86,114) - Bank charges (463,201) 111,621 (1,426,122) (269,812) (450,876) 156,562 (1,371,571) (115,606) Finance cost per statement of cash flows (8,720,387) (7,648,188) (27,542,398) (18,590,980) (8,069,319) (6,930,001) (25,804,348) (16,857,024) Foreign exchange loss (net) (2,492,126) (9,332,151) (7,385,923) (9,921,505) (3,512,233) (621,099) (7,957,483) (4,800,703) Finance costs (11,212,513) (16,980,339) (34,928,321) (28,512,485) (11,581,552) (7,551,100) (33,761,831) (21,657,727) Net finance (costs)/ income recognised in the profit or loss (10,799,413) (16,605,178) (33,481,699) (27,584,053) (11,244,996) 544,227 (32,539,874) (2,620,614) 12 Income tax (credit)/ expense This note provides an analysis of the and 's income tax expense. It shows what amounts are recognised directly in equity and how the tax expense is affected by non-assessable and non-deductible items. It also explains significant estimates made if any, in relation to the and 's tax position Income tax (credit)/ expense recognised in profit or loss 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ 30/09/ Current income tax income tax 407, ,028 1,582,157 2,322, , ,644 Education tax 57,117 20, ,128 84,850 24, , Capital gains tax , ,326 Total current tax expense 464, ,053 1,992,285 2,523,642 24, , , ,970 Deferred income tax Deferred income tax (credit)/charge to profit or loss (Note 12.5) (2,008,781) 883,585 (5,979,939) (2,367,988) -1,497,496 1,973,556 (1,087,409) 5,621,048 Income tax (credit)/charge (1,544,434) 1,727,637 (3,987,654) 155,654 (1,473,233) 2,157,702 (795,632) 6,334,018 Income tax (credit)/ expense (1,544,434) 1,727,637 (3,987,654) 155,654 (1,473,233) 2,157,702 (795,632) 6,334, Reconciliation of effective tax to statutory tax The tax on the s loss before income tax differs from the theoretical amount that would arise using the statutory income tax rate as follows: 30 Sep 30 Sep 30 Sep (Loss) / profit before tax from (14,360,678) 1,093,559 (2,714,853) 21,662,667 continuing operations before income Tax calculated at statutory tax rate of (4,308,203) 328,068 (814,456) 5,066,336 32%, 28% for LSAH (2016: 30%, 28% for LSAH) Impact of disallowable expenses for tax purpose 598,271 (119,743) 377,386 64,562 Impact of non taxable income (718,606) (1,037,041) (650,339) (1,444,198) Changes in estimate relating to prior year (252,105) Impact of education tax rule 410, , , ,289 Impact of unrecognised tax losses Effect of tax exemption - Netherlands - (192,238) - - Effect of pioneer status Impact Recognition of minimum of previously tax - 236, unrecognised deductible temporary differences Impact of capital gains tax - 116, ,326 Share of profit of equity accounted investees Impact of changes in pioneer status Effect of lower tax rates in South Africa 282, , Income tax expense/ (credit) recognised in profit or loss (3,987,654) 155,654 (795,632) 4,176,316 Effective tax rate 28% 14% 29% 19% 13

14 Notes to the Consolidated and Separate Financial Statements for the year ember 12.3 Income tax recognised in other comprehensive income 30/09/ 30/09/ 30/09/ 30/09/ Deferred tax arising on: Remeasurement of defined benefit obligation 1,249 50, Current tax asset 30/09/ 30/09/ 30/09/ 30/09/ At 1 January 917, , income tax (76,548) (209,878) - - Prior year over-provision - (16,228) - - Charge for the period (76,548) (226,106) Sep 30 Sep Effect of Pioneer status Payments during the year 87, , Exchange rate difference (41,184) 453, Closing Bal. 887, , Current income tax liabilities 30 Sep 30 Sep Balance at 1 January 3,251,525 1,311,906 1,544, ,625 Transfer through internal merger ,163 Charge for the year: income tax 1,467,956 1,177, Education tax 410, , , ,406 Capital gains tax - 116, ,326 Minimum tax - 287, ,672 Prior year over-provision ,878,084 2,516, ,777 1,496,567 Payment during the year (1,798,985) (568,930) (582,690) (307,000) Witholding tax utilised - (8,243) - (8,243) Closing Bal. 3,330,624 3,251,525 1,254,036 1,544, Deferred income tax The analysis of deferred tax assets/(liabilities) is as follows: 30 Sep 30 Sep Deferred tax assets 12,346,858 7,951,595 17,420,793 16,333,384 Deferred tax liabilities - (1,463,106) - - Deferred tax assets/(liabilities) net 12,346,858 6,488,489 17,420,793 16,333,384 Deferred tax liabilities/(assets): At 1 January (Credit)/ charge to P/L (Credit)/ charge to OCI Exchange rate differences. N'000 Property, plant and equipment 24,725,234 (4,975,123) - (480,444) 19,269,667 Provisions and other liabilities (6,407,725) (621,174) - 130,551 (6,898,348) Unutilised tax losses (19,038,136) 663, ,865 (17,899,847) Employment benefit obligation (131,065) 194,653 - (2,854) 60,734 Prepayments (72,118) - (548) 11,110 Unrealised exchange differences (5,720,573) (1,169,602) - - (6,890,175) Total deferred tax liabilities/(assets) (6,488,489) (5,979,939) 0 121,570 (12,346,858) 14

15 Notes to the Consolidated and Separate Financial Statements for the year ember Deferred tax liabilities/(assets): At 1 January (Credit)/ charge to P/L (Credit)/ charge to OCI Exchange rate differences At 31 December N'000 Property, plant and equipment 19,524,049 (455,042) - 5,656,227 24,725,234 Provisions and other liabilities (5,445,108) 389,449 - (1,352,066) (6,407,725) Unutilised tax losses (2,567,337) (15,333,984) - (1,136,815) (19,038,136) Employment benefit obligation (211,050) (41,987) 96,854 25,118 (131,065) Prepayments 38,737 8,102-36,937 83,776 Operating lease liability Unrealised exchange differences (18,980,294) 13,259, (5,720,573) Others Total deferred tax liabilities/(assets) (7,641,003) (2,173,741) 96,854 3,229,401 (6,488,489) At 1 January Arising from reorganisatio n (Credit)/ charge to P/L (Credit)/ charge to OCI. Deferred tax assets/(liabilities): N'000 Property, plant and equipment 3,756,535 - (4,398,646) - (642,111) Unutilised tax losses (11,684,826) - 4,376,649 - (7,308,177) Provisions and other liabilities (2,699,231) - (119,956) - (2,819,187) Unrealised exchange differences (5,511,209) - (1,140,108) - (6,651,317) Employment benefit obligation (194,653) - 194, Total deferred tax liabilities/(assets) (16,333,384) - (1,087,409) - (17,420,793) Deferred tax liabilities/ (assets): At 1 January Arising from reorganisatio n (Credit)/ charge to P/L (Credit)/ charge to OCI At 31 December N'000 Property, plant and equipment 19,400,045 (16,958,882) 1,315,372-3,756,535 Unutilised tax losses (69,671) (1,504,625) (10,110,530) - (11,684,826) Provisions and other liabilities (1,736,816) (1,230,691) 268,276 - (2,699,231) Unrealised exchange differences 581,825 (19,561,934) 13,468,900 - (5,511,209) Employment benefit obligation (144,050) (67,000) (41,987) 58,384 (194,653) Others Total deferred tax liabilities/(assets) 18,031,333 (39,323,132) 4,900,031 58,384 (16,333,384) Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and unutilized tax losses can be utilised. 15

16 Notes to the Consolidated and Separate Financial Statements for the year ember 14 Property, plant and equipment Leasehold Land Buildings Production Plant Capitalised Spares Furniture Motor Vehicles Computer Equipment Ancillary Plant & Machinery Construction Work in Progress Total N'000 N'000 Cost: As at 1 January 7,957, ,053, ,148,428 2,365,440 6,528,639 2,744,347 1,450, ,533 42,121, ,926,296 Capital expenditure - 550, ,800,622 20,351,343 Construction expenditure - 1,860,054 18,977,437 2,304,142 3,774, , , ,414 (27,736,141) - capitalised (Note 14.1) Reclassification - 178, ,901-1, ,856 (560,947) - Disposals - (1,802,191) (19,554) - (157,846) (5,894) (20,595) - - (2,006,080) Write-offs - (517,655) (207,183) - (7,747) (517,917) (1,267) - - (1,251,769) Exchange difference - 4,456,516 40,612, , ,012 46,410,162 As at ember 7,957, ,228, ,062,642 4,669,582 10,995,791 2,429,640 1,583,995 1,371,803 34,130, ,429,952 Cost: As at 1 January 7,957, ,228, ,062,642 4,669,582 10,995,791 2,429,640 1,583,995 1,371,803 34,130, ,429,952 Capital expenditure ,838,761 11,838,761 Construction expenditure - 725,310 2,328, , ,943 19, ,000 (3,634,231) (0) capitalised Reclassification - 14,206 51, ,168 - (67,300) (0) Write-offs - (3,681) (475,514) (87,306) (2,867,535) (18,263) (785,110) (6,161) - (4,243,571) Exchange difference - (433,306) (3,776,465) - (226,070) (61,172) (4,497,012) As at. 7,957, ,530, ,191,014 4,582,276 8,032,149 2,738, ,642 1,469,642 42,206, ,528,130 Depreciation Accumulated depreciation and impairment losses: As at 1 January 3,674,163 17,560,487 89,508,679 1,267,225 4,763,802 2,599,559 1,055, , ,685,480 Charge for the year 411,161 3,210,468 15,819, ,415 1,809, ,276 93, ,239-22,181,159 On disposals - (1,142,990) (40,065) - (40,478) (5,894) (20,595) - - (1,250,022) Write-offs - (170,768) (68,601) - (7,703) (446,774) (1,108) - - (694,954) Impairment loss - 212,210 3,007, , ,771,868 19,178,254 Exchange difference - 1,519,952 19,471,713 - (319,077) ,513 20,678,101 As at ember 4,085,324 21,189, ,699,454 1,790,640 6,392,191 2,331,167 1,127, ,243 15,777, ,778,018 As at 1 January 4,085,324 21,189, ,699,454 1,790,640 6,392,191 2,331,167 1,127, ,243 15,777, ,778,018 Charge for the year 184,940 2,576,089 12,527, ,456 1,004,521 31,305 63, ,256-17,023,732 On disposals Write-offs - (956) (472,093) (87,306) (2,849,442) (32,203) (778,316) 8,460 - (4,211,856) Reclassification Exchange difference - (180,418) (1,351,282) - (1,046,095) (2,598) (2,580,393) As at. 4,270,264 23,584, ,403,163 2,070,790 3,501,175 2,330, , ,960 15,774, ,009,501 Carrying amount As at. 3,687,486 88,946, ,787,851 2,511,486 4,530, , , ,682 26,431, ,518,628 At ember 3,872,426 91,039, ,363,188 2,878,942 4,603,600 98, , ,560 18,352, ,651,934 16

17 Notes to the Consolidated and Separate Financial Statements for the year ember Leasehold Land Buildings Production Plant Capitalised Spares Furniture Motor Vehicles Computer Equipment Ancillary Plant & Machinery Construction Expenditure Total Cost: N'000 N'000 As at 1 January 2,370,573 3,021, ,112,353 2,365,440 2,430,011 1,322,156 1,450, ,533 5,163, ,792,944 Capital expenditure , ,984,645 12,535,366 Construction expenditure - 1,203,917 19,607,018 2,304,142 9, , ,338 99,557 (23,540,054) - capitalised Internal merger through 5,436,994 74,973, ,621,618-2,352, , ,428-28,144, ,546,814 business combinations Disposals - (1,802,191) (5,388) - (43,737) (5,894) (20,595) - - (1,877,805) Write-offs - (517,655) (207,183) - (7,747) (517,917) (1,267) - - (1,251,769) As at ember 7,807,567 76,879, ,679,139 4,669,582 4,740,108 1,859,937 1,700, ,090 21,753, ,745,550 Leasehold Land Buildings Production Plant Capitalised Spares Furniture Motor Vehicles Computer Equipment Ancillary Plant & Machinery Construction Expenditure Total N'000 N'000 Cost: As at 1 January 7,807,567 76,879,834 59,276 4,669,582 59,276 1,859,937 1,700, ,090 21,753, ,745,550 Capital expenditure ,896,619 5,896,619 Construction expenditure capitalised - 725,310 1,179,870 - (23,978) 217,873 19, ,000 (2,222,664) - Write-offs - (0) (472,719) (87,306) (2,691,132) (13,063) (785,110) (6,161) - (4,055,492) - As at. 7,807,567 77,605, ,427 4,582,276 (2,655,834) 2,064, , ,929 25,427, ,586,677 Accumulated depreciation and impairment losses: As at 1 January 19,171 1,033,734 34,081,776 1,267,225 2,359,612 1,102,561 1,055, ,004-41,175,644 Internal merger 3,614,460 10,784,642 26,461,517-1,048, , , ,908,779 through business combinations Charge for the year 400,916 2,160,386 12,747, ,415 81, ,010 89, ,239-16,304,267 On disposals - (1,142,990) (5,278) - (40,478) (5,894) (20,595) - - (1,215,235) Write-offs - (170,768) (68,601) - (7,703) (446,774) (1,108) - - (694,954) As at ember 4,034,547 12,665,004 73,217,198 1,790,640 3,442,002 1,712,644 1,231, ,243 12,394, ,872,771 As at 1 January 4,034,547 12,665,004 73,217,198 1,790,640 3,442,002 1,712,644 1,231, ,243 12,394, ,872,771 Charge for the year 176,717 1,748,023 9,354, , ,316 15,492 61, ,256-12,514,878 Write-offs - - (471,050) (87,306) (2,673,063) (27,003) (778,316) 8,460 - (4,028,278) As at. 4,211,264 14,413,027 82,100,963 2,070,790 1,290,256 1,701, , ,960 12,394, ,359,372 Carrying amount As at. 3,596,303 63,192,118 (81,334,536) 2,511,486 (3,946,089) 363, ,894 90,969 13,032, ,227,305 At ember 3,773,020 64,214, ,461,941 2,878,942 1,298, , , ,847 9,358, ,872, Depreciation Depreciation for the year has been charged as follows: Cost of sales 16,154,718 21,447,285 12,379,493 15,815,377 Administrative expenses 675, , , ,890 16,829,966 22,181,159 12,514,879 16,304,267 17

18 Notes to the Consolidated and Separate Financial Statements for the year 30 September 15 Intangible assets Cost At 1 January 5,102,341 2,914, Addition 4,022, ,192 2,759,109 - Reclassification Exchange difference (199,402) 1,959, ,925,289 5,102,341 2,759,109 - Accumulated amortisation At 1 January 2,468,015 1,351, Charge for the year 438, , Reclassification Impairment - 226, Exchange difference (45,006) 724, ,861,288 2,468, Carrying amount 6,064,001 2,634,326 2,759,109 - Intangible assets represents mineral rights, good will and computer software in the 's operations. The addition in the represents the company's investment in a new ERP software (Systems, Applications and Products) 15 Business Combination The applies the pooling of interest method for its business combination under common control. The difference between the net assets acquired at their carrying value and the consideration paid is recognised in equity. In, Lafarge Africa Plc acquired the remaining non-controlling interest in AshakaCem; merged UNICEM and Atlas into Lafarge Africa Plc and also liquidated ECH and NCH Merger of UNICEM and Atlas with Lafarge Africa Plc In, the sought and obtained shareholders' and regulatory approval to merge with two wholly owned subsidiaries, UNICEM and Atlas, effective on 22 December. The merger was effected in and the operational integration of the entities has been finalised. The subsidiaries which were merged were ultimately controlled by the same party before and after the merger and Common control is therefore not transitory. Consequently, this is a business combination of entities under common control. The Directors have elected not to restate the comparatives in the Separate Statement of profit or loss and other comprehensive income as this is not explicitly required by the standards The net assets of these subsidiaries were transferred to the at no purchase consideration and recognised in other reserves in accordance with the 's accounting policy. Liquidation of ECH and NCH On 11 December, in order to streamline the structure, Egyptian Cement Holdings (ECH) and Nigerian Cement Holdings (NCH) were liquidated and their assets and liabilities assumed by Lafarge Africa. This was done in order for Lafarge Africa to have direct ownership of UNICEM. Prior to the liquidation of Nigerian Cement Holdings (NCH), included in other reserves was Quasi equity instrument amounting to a sum of NGN 139 billion which represented USD 493 million loans originally due to Holderfin B.V. but later assigned to Caricement B.V. This instrument was initially carried as loans in prior years but was converted to an equity instrument in July 2016, with amendments made to the existing loan agreements. Amendments to the loan agreements showed that repayment of the loans was at the discretion of the and due on liquidation of the borrower. In and upon the liquidation of NCH, the outstanding Quasi-Equity instrument of USD344 million (inclusive of accrued interest of USD17.2 million) was converted to loan in the books of Lafarge Africa. Subsequently, loans payable to Caricement B.V were used in subscribing for rights taken up by Caricement B.V in respect of the rights issue via a debt to equity conversion as at ember. 18

19 Notes to the Consolidated and Separate Financial Statements for the year 30 September 16 Interests in other entities Investment in subsidiaries The s principal subsidiaries as at are set out below. Unless otherwise stated, they have share capital consisting solely of ordinary shares that are held directly by the, and the proportion of ownership interests held equals the voting rights held by the. The place of incorporation is also their principal place of business.. Name of entity Principal activities Place of Incorporation Proportion % N'000 Lafarge Ready Mix Nigeria Limited Aggregate and Concrete Nigeria ,000 Lafarge South Africa Holdings (PTY) Limited Building Materials South Africa ,141,539 Ashaka Cement PLC Cement Nigeria ,896, ,088,406 ember Name of entity Principal Activities Place of Proportion Cost Incorporation % N'000 Lafarge Ready Mix Nigeria Limited Aggregate and Concrete Nigeria ,000 Lafarge South Africa Holdings (PTY) Limited Building South Materials Africa ,141,539 Ashaka Cement PLC Cement Nigeria ,896, ,088,406 Cost 17 Other financial assets Non current Available for sale - 11, Other financial assets (Note 17.1) 2,741,918 1,571,151 2,741,918 1,556,738 2,741,918 1,582,622 2,741,918 1,556,738 Current: Other financial assets (Note 17.2) 749, , , ,635 3,491,076 2,175,160 2,968,414 1,883, Other financial assets - Non current Loan to CBI Ghana 1,578,312 1,370,832 1,578,312 1,370,832 Receivable from third parties 1,163, ,319 1,163, ,906 2,741,918 1,571,151 2,741,918 1,556, Other financial assets - Current Loan to related company 328, Staff loans 1,954 15,334 1,954 15,334 Short term receivables 193, ,406-96,503 Loan to CBI Ghana 224, , , , , , , ,635 19

20 Notes to the Consolidated and Separate Financial Statements for the year 30 September 18 Derivative financial instruments The /'s derivative financial instruments arose from Non-deliverable foreign exchange forward (NDF) contracts with commercial banks that were yet to mature as at reporting date, and includes: Assets Liabilities Assets Liabilities Caricement B.V 10, , ,091 4,212,406 10, , ,091 4,212, Other assets 30-Sep Dec-17 Non current 18,612,631 20,803,113 16,113,033 14,984,747 Current 11,959,368 15,162,092 10,354,796 10,679,505 30,571,999 35,965,205 26,467,829 25,664,252 Advance payment to suppliers 4,438,158 3,960,699 3,416,404 2,820,447 Prepaid medical - 23,293-23,293 Defered charges 10, ,800 16,188 Prepayment for Gas 13,455,568 9,833,096 13,455,568 9,833,096 Rental lease 714, , Prepaid rent 268, , , ,291 Prepaid insurance 99, ,719 75, ,161 Prepaid expenses 1,508,565 1,087,127 1,113, ,960 Advance payment to transporters 5,388,158 8,538,932 5,388,158 8,538,932 Advance payment of taxes and levies 1,400,000 1,052,287 1,400,000 1,052,287 Letters of credit 1,862,166 7,645, Long term prepayments - 34,232-34,232 Deposit for imports 1,377,704 2,077,365 1,377,704 2,077,365 Other assets 49, , ,571,999 35,965,205 26,467,829 25,664, Inventories Raw materials 12,153,392 12,702,259 10,017,123 10,653,843 Work in progress 10,282,732 10,860, , ,337 Finished goods 11,503,224 12,357,522 11,080,595 11,787,460 Spare parts 21,143,073 19,115,915 15,693,883 14,146,953 Other supplies 3,821,916 3,230,233 2,107,440 2,034,238 58,904,337 58,266,466 39,126,682 39,057, Trade and other receivables Trade receivables: Third party sales 17,533,380 20,123,998 2,752,166 2,458,322 Related party sales 680, , ,595 1,301,250 18,213,737 20,938,666 3,518,761 3,759,572 Impairment on trade receivables (573,992) (954,963) (108,758) (127,621) Net trade receivables 17,639,745 19,983,703 3,410,003 3,631,951 Other receivables 6,683,293 3,479,803 5,002,071 1,411,158 Due from related parties 5,257,171 1,646, ,887,861 Net other receivables 11,940,464 5,126,413 13,207,855 12,299,019 Total trade and other receivables 29,580,209 25,110,116 16,617,858 15,930,970 20