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About Us GROUP OVERVIEW Our Gboko Cement Plant in Benue State has 4Mta of capacity. Acquired originally during a privatisation exercise in Nigeria, we refurbished and upgraded the plant to its present capacity. Originally designed to use just LPFO, because no gas pipelines ran anywhere near the plant, Gboko has recently been equipped with coal milling facilities so that its kilns can run more costeffectively on the cheaper fuel. Gboko was mothballed throughout most of 2016 as we shifted production to alternate lines at Obajana and Ibese, which enjoy Pioneer tax status. Over the past few years, the profitability and strong cash generation of our operations in Nigeria have helped us to expand our business across Sub-Saharan Africa with a mixture of integrated, grinding and import facilities to meet the demands of local markets. We began 2016 with approximately 44Mta of production and import capacity across Africa. Our 3.0Mta plant in Tanzania made its maiden contribution to Group sales in the first quarter of the year and very quickly established itself as a leading supplier, achieving a 23% market share by June 2016. The rapid success of plants that we have opened beyond Nigeria is testament to our strategy of competing on costs, service and selling higher-quality cement at competitive prices for local needs. This success has given us the confidence to continue expanding. By 2023, we plan to augment our existing operations in Nigeria, Cameroon, Ethiopia, Senegal and Zambia and establish new facilities in Kenya, Liberia, Mali, Niger and Zimbabwe. In September 2015, we announced plans to venture beyond Africa for the first time and build a plant in Nepal to serve local and export markets. With this expansion, Dangote Cement will truly be a global force in cement production, operating in some of the most exciting growth markets in the world where demand is set to rise substantially in the coming years. We will take advantage of being able to operate within trading blocks that enable us to export our cement Annual Report 2016 15 from one country and import it into our own facilities elsewhere. Such an export-to-import strategy makes great sense in West Africa, where many countries lack the limestone necessary to make cement. Although the pace of our expansion is unprecedented in the history of the cement industry, we are investing for growth at a time when many of the world’s largest cement companies are focusing more upon debt reduction than capacity expansion. However, as a result of our financial strength, we have an opportunity to enter these markets and gain share very quickly. This is our strategic advantage. Our operational advantage in Sub-Saharan Africa is our ability to enter new markets and build modern, energyefficient factories that will provide strong competition for many of the ageing cement plants that serve the region at present. We will take high-quality limestone from newly mined quarries and produce higher-quality, stronger and quicker-setting cement at lower cost than many other producers can achieve in these markets. We will support these facilities with strong logistics and the ability to buy resources in bulk across the Group, thereby reducing costs. These strategic and operational advantages will fortify our position as the leading provider of cement in a rapidly growing continent that is embarking on a huge build-out of its infrastructure, housing and commercial space. The experience of other emerging markets shows that this will take more than one generation of Africans to complete, but we believe it is a great opportunity for us to become a global force in cement production. We are confident that the strategy we are pursuing will ensure that Dangote Cement becomes and remains the partner of choice for those who are building a new African continent.

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