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REVIEW OF THE BUSINESS IN 2016 Pan-African operations achieved sales of 8.6Mt in 2016, an increase of 54.0% on the 5.6Mt sold in 2015. The increase is attributable to higher sales across established factories and the maiden contribution of Tanzania, which opened in the first quarter of 2016. Financial performance for 2016 did not include Sierra Leone or Congo, which are expected to begin sales in the first quarter of 2017. Cameroon Cameroon is expected to have increased GDP by 5.6% in 2016, with slightly higher growth forecast for 2017, according to estimates published by the World Bank in January 2017. Inflation has been falling since May 2015, reaching 1.1% for the first nine months of 2016. Key drivers for cement demand are infrastructure projects focused upon port development, power generation, new roads and dams. The country has begun to enforce a ban on imported bulk or bagged cement, introduced at the start of 2016, presenting an opportunity for our 1.5Mta grinding plant to gain market share quickly by selling cement made in Cameroon from imported clinker. During 2016 we sold nearly 1.1Mt of cement, a 90% increase on the 0.6Mt sold in 2015 despite maintenance in June and heavy rains from July to October. With total market sales at about 2.5Mt in 2016, this gave us a market share of 43%. Cement pricing was about $103 on average, after rebates and discounts. Pan-African operations: sales volumes by country (‘000 tonnes) 600 700 800 100 200 300 400 500 0 Jan-16 Feb-16 South Africa Mar-16 Apr-16 Senegal May-16 Ethiopia Jun-16 Zambia Jul-16 Aug-16 Cameroon Sep-16 Ghana Oct-16 Tanzania Nov-16 Dec-16 A significant development for our factory was the opening of its dedicated unloading jetty in August. Previously, we unloaded clinker and gypsum in the Port of Doula and conveyed it to the factory by truck, which obviously increased its cost. Additionally, building our own dedicated jetty eliminated the need to queue ships or compete for space in the port. This also helped to reduce the cost of importation slightly. Clinker can now be offloaded from the ship directly onto conveyor belts that take it to the clinker silo. As with 2015, we experienced problems with the quality of imported clinker, obliging us to use more for each tonne of cement we ground at the plant. We used approximately 0.85Mt of clinker to produce 1.1Mt of cement, at a clinker-cement ratio of 1.23. Our plan is to make more use of higher-quality clinker imported from our plants in Nigeria, once export facilities have been put in place there. We have a fleet of more than 200 trucks for cement distribution in Cameroon, but these handle only 20% of dispatches from the factory. The remaining 80% of cement sold is collected by customers. Congo The Republic of Congo is expected to show a slight increase in GDP over the past year, rising from 2.6% in 2015 to 4.6% in 2016, according to World Bank estimates published in January 2017. Inflation rose sharply during the year, starting at about 2% and ending 2016 at more than 6%, according to Trading Economics. 58 Annual Report 2016 ‘000 tonnes

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