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AUDIT, COMPLIANCE & RISK MANAGEMENT COMMITTEE REPORT Committee activities during 2016 Key matter considered Health, Safety and Environment (HSE) Anti-Fraud Committee/ Disciplinary Committee • The 2016 Audit Plan Execution Update • The recruitment of 5 Auditors for effective coverage • SAPGRC Implementation Internal Audit activities update • Whistle blowing • Special and advisory assignments • KPIs and balanced scorecard • EXCO action points • Major operating review • Operating risks and audit focus • Control environment update • Whistle blowing • External Audit recommendations • Appointment of Deputy Head, Internal Audit • Reviewed report on impact of significant progress in overall control environment. • Await representation on appointment of Deputy Head, Internal Audit. Committee actions • The Committee ensured that HSE functions are established for all plants, and developed appropriate policies and measures to reduce health, safety and environmental risks at all of its plants throughout Africa. • The Anti-Fraud Committee’s report should be included as part of Internal Audit presentation at all BARMC meetings and the Group Chief Risk Officer should be included as a member of AFC. • The formation of the Disciplinary Committee was approved with the Group General Counsel as the Chairman. • The progress on audit plan execution was noted and the deployment of SAPGRC was approved. • Meeting noted that the improvement in the Control Environment and that audit plan was on course to completion. • The conclusions from ongoing investigations should be submitted when ready. Risk management Introduction The Risk Management function of Dangote Cement supports the Board of Directors, the Executive Committee and Management of all subsidiaries in the Group in identifying, analyzing and controlling the Company’s overall risk exposure. Risks identified are managed systematically to ensure all prevalent and emerging risks to which the Company is exposed are managed properly. A holistic and fit-for-purpose methodology is adopted to ensure all types of risks emanating from the Company’s strategic, internal and external activities are captured. For proper analysis, risk incidents are mainly grouped under Business & Strategic Risk, Operational Risk, Financial Risk, Market Risk, Liquidity Risk, Business Continuity Risk and Reputational Risk. 100 Annual Report 2016 The Group defines risks as events that portend any consequence of uncertainty in the attainment of its business objectives which can result in an opportunity or a threat. The outlook for effective risk management involves proper analysis of the Group’s business activities to identify short, medium and long-term risks. Identified risks are then assessed, measured and controlled with close monitoring of the implementation of recommended controls by the Group’s Risk Management Department. Insurance solutions are instituted as a key method of risk treatment. The risk landscape of Dangote Cement Plc is derived through thorough risk assessments and deployment of other risk identification tools that cover all strategic, internal and external business activities of the Group. These risk management tools are utilised

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