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Financials NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2016 7. Production cost of sales Group Material consumed Fuel & power consumed Royalty* Salaries and related staff costs Depreciation & amortization Plant maintenance Other production expenses Increase in finished goods and work in progress 31/12/2015 ₦’million 55,623 66,495 1,138 (2,526) 323,816 15,263 38,243 18,331 10,830 (4,115) 201,808 ^Royalty payable is charged based on volume of extraction made during the year. 8. Administrative expenses Group Salaries and related staff costs Corporate social responsibility Management fee (refer (a) below) Depreciation and amortisation Audit fees (b) Directors’ remuneration Rent, rates and insurance Repairs and maintenance Travel expenses Bank charges General administrative expenses Others Impairment of property, plant and equipment 31/12/2015 ₦’million 9,203 722 2,839 4,025 285 485 Company Year ended Year ended Year ended Year ended 31/12/2016 ₦’million 87,203 112,265 1,382 31/12/2016 ₦’million 24,927 81,678 741 24,019 51,245 29,063 21,165 15,089 33,870 17,690 4,840 (706) 178,129 31/12/2015 ₦’million 21,214 50,066 598 11,282 29,988 12,228 5,804 (762) 130,418 Company Year ended Year ended Year ended Year ended 31/12/2016 ₦’million 11,338 1,097 3,054 5,789 396 638 31/12/2016 ₦’million 6,378 812 3,054 1,946 215 632 3,934 1,019 1,905 1,126 4,088 3,540 (1,255) 36,669 3,642 781 1,510 833 3,140 3,457 1,624 32,546 2,064 843 898 438 969 426 (1,588) 17,087 31/12/2015 ₦’million 6,830 587 2,839 1,907 191 485 2,500 650 928 664 1,654 3,065 1,624 23,924 (a) The management fee is charged by Dangote Industries Limited for management and corporate services provided to Dangote Cement Plc. It is an apportionment of the Parent’s company shared-services to all its material subsidiaries. (b) In addition, ₦21 million (2015: ₦21 million) was paid to Akintola Williams Deloitte for quarterly limited reviews. Annual Report 2016 175

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