4Group ProfileMission Statement – Touching the lives of people by providing their basic needsDiversified business conglomerate focused on provision of essential goods (food and shelter)Began life as a trading business (1985) and made a strategic decision in 1999 to transition to local production/manufacturing.Recognition of the opportunity to develop value added local production capacityRapid growth into one of the largest conglomerates in Nigeria
5Group business sectors Cement - Manufacturing / Importing, Packing and DistributionSugar - Farming & Refining, Packing and DistributionSalt - Refining, Packaging and DistributionFlour & Semolina - Milling, Packing and DistributionSpaghetti, Macaroni & Noodles - Manufacturing and DistributionPolysacks - ManufacturingLogistics - Port ManagementLogistics - Transportation of Raw material and Finished GoodsProperty DevelopmentOil & Gas explorationTelecoms – 3G licenceAssociated infrastructure
6Major Assets (1)Obajana Cement Plant – Largest cement plant in Sub-SaharanAfrica (5 Million tonnes of production capacity)
7Major Assets (2)Dangote Sugar Refinery Plc (Apapa, Lagos) – 1.44 Million tonnesof annual refining capacity making it the largest in SSA.
8Major Assets (3)Savannah Sugar in Numan has 32, 000 hectares of cultivated landand currently produces 150,000 tonnes of raw sugar per annum.An upgrade is currently taking place to increase production to600,000 tonnes per annum.
9Major Assets (4)Dangote Flour Mills plc has five flour mills in Nigeria producing4,500 Metric tonnes of flour every day
11Economy GDP (PPP) of US$293 Billion Real GDP growth (2008) of 6.4% Population (2008) – 143 MillionOil and agriculture made up 69% of GDP in 2009 (37.3% and 31.7% respectively)Non-oil sector growth outstripping real GDP growth (agriculture grew by 8% in 2007)Predicted growth of over 3.5% in 2009, despite global financial crisis (IMF)
12OpportunitiesCited by Goldman Sachs as one of ‘next 11’ countries expected to follow the BRICs into the top 20 world economiesSignificant consumer market and growing middle class (143 Million population and growing)Large natural resource reservesReform agendaHigh Return on Investment (ROI)
13ChallengesInfrastructure deficiency (energy, services and transportation)Financial Sector – high cost of capital and short-term mindsetLack of sufficient skilled local labourCostly operating environmentA challenging environment, but one that rewards those committed to success
14Conclusions Strong ROI for company’s committed to investment Reform agenda creating a platform for enhanced operating environmentGrowth despite global financial crisisOpportunities across a range of non-oil sectorsImportance of local content and knowledgeThe Dangote model demonstrates that success is achievable across a range of sectors