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Corporate Governance FINANCE & GENERAL PURPOSE COMMITTEE REPORT Key matter considered Committee actions Committee activities during 2016 Review of financial statements • Reviewed and recommended to the Board for approval, the 2015 audited financial statements. • Reviewed and recommended to the Board for approval, quarterly 2016 unaudited financial statements. • Recommended and authorised submission of the financial statements to the relevant regulatory bodies. • Discussed the performance of the Group in comparison with the approved budget. Capital structure and financing • Recommended the development of a robust policy to guide process of granting loans to subsidiary companies. • Considered the reports on the status of loan facilities granted to subsidiaries and made recommendation to the Board on next steps. • Reviewed and recommended to the Board the approval of loan facilities for subsidiaries. • Reviewed the total debt (inter-company loans and external borrowing) of Dangote Cement’s subsidiaries. • Deliberated on the effect of regulatory changes on the working capital management of subsidiaries across Africa. • Reviewed payment of inter-company loans and the current loan portfolio of the Company. External audit • Considered the Auditor’s report and management letter including outstanding issues, judgements and estimates, significant audit risks and risk management and internal controls systems. • Reviewed the letter of representation presented by the Group Chief Financial Officer and recommended the letter to the Board for approval. Dividend payment Budget • Discussed the different scenarios for dividend payout and decided on the amount of the dividend to recommend to the Board with respect to the 2015 financial year. • Reviewed the annual Budget for recommendation to the Board for approval. Key indices included sales target that showed a volume increase above 2015, achievable through market penetration and increased sales volumes by exports into Pan-African countries; finance and cash costs. Budget monitoring Expenditure on Corporate Social Responsibility Cost reduction measures • Reviewed the quarterly and full-year performance of the Group against the approved Budget. • Ensured the performance of the Company was within Budget and properly challenged Management on Budget performance at every meeting. • In furtherance of the mandate given to management to develop a Corporate Social Responsibility Policy and Plan, the Committee reviewed the CSR initiatives of the Group in 2016 aimed at enriching the host communities where the company has operations across Africa, with a view to increasing awareness and achieving model corporate citizenship. • Having regard to the state of the Nigerian economy, the Committee adopted direct sourcing of materials and deployment of self-owned trucks in exports as initiatives towards cost reduction and maintaining profitability. Annual Report 2016 113

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