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Corporate Governance AUDIT, COMPLIANCE & RISK MANAGEMENT COMMITTEE REPORT in all subsidiaries of the Group and at all levels in the organisation. All mitigating actions implemented are duly approved by relevant business owners and approving authorities. Risk profile in 2016 Financial risks - Insurance risk In 2015, the Group achieved competitive insurance pricing for local and international policies. In 2016, we leveraged on competition in the insurance market, economic downturns, a positive property insurance market and the good disposition for Dangote Cement’s business. A holistic approach was adopted in managing the Group’s insurance portfolio, which resulted in Groupwide consolidation of our insurance requirements with a preferred broker. This has resulted in economies of scale in premiums paid, broadened the scope and scale The Insurance Compliance Status is as captured below: of coverage, and ease of administration for compliance with the minimum insurance requirements of the host country and Group insurance policies. Major achievements in 2016 include: • 10% premium savings in 2016 with a cumulative total of 33% in two years on local policies • 20% rate savings was achieved in 2016 on Property Damage / Business Interruption (PDBI) for DCP Obajana and DCP Ibese • Reduction of Deductibles on Property Damage at Obajana and Ibese Plants by 150% in 2016 • Cumulative premium savings of 58% on foreign policies and 18.25% reduction in premiums on the Pan-African PDBI for plants in South Africa, Cameroon, Tanzania and Ethiopia, as a result of improvements in the risk profile. 1. South Africa 9. Ethiopia 2. Zambia 3. Congo 4. Cameroon 5. Nigeria 6. Ghana 7. Ivory Coast 8. Liberia 10. Kenya 11. Senegal 12. Sierra Leone 13. Niger 14. Tanzania 15. Mali 16. Zimbabwe Meets minimum requirement Meets 50% of the minimum requirement Not applicable at present Annual Report 2016 101

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