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CHAIRMAN’S STATEMENT Dear Shareholders It is my pleasure to deliver this Annual Report at the 8th Annual General Meeting of Dangote Cement. Our 2016 Annual Report contains detailed information about the activities of the Company in what was a challenging year for business across Africa. Yet I am pleased to report that we achieved growth in market share across Africa, opened a new plant in Tanzania, increased our revenues by 25.1% and began preparations to commission new production and import facilities in Congo and Sierra Leone, that will increase our capacity to just under 46 million tonnes per annum (Mta). I am particularly pleased to tell you that in Nigeria, exports of cement exceeded imports for the first time and that we at Dangote Cement have transformed Nigeria from one of the world’s biggest importers of cement, into a net exporter. Aliko Dangote GCON Chairman We have transformed Nigeria into a net exporter of cement. Our success in 2016 has enabled the Board to recommend for your approval a dividend of ₦8.5 per 50 kobo share, which is 6.25% higher than last year and a dividend payout equal to 74.9% of net profits. You may recall that in last year’s Annual Report I highlighted not just our achievements in growth, but more importantly I conveyed to you my belief we had ended the year as a better company. We introduced many improvements to our governance; we successfully diversified our business beyond Nigeria and our new plants were already contributing cash flows to the group. In addition, we were mid-way through the conversion of our Nigerian plants to coal so we could diversify and secure the fuel supplies to our largest and most profitable plants. All of these initiatives were the result of plans we had made in the years before, years in which we enjoyed healthy profits and a stronger and more stable Naira backed by robust economic growth in our main market of Nigeria. But rather than sit back and take our success for granted, we preferred to focus upon investing our funds and our energies into becoming a more resilient and better-managed company. 8 Annual Report 2016

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