March 22, 2017/Cordros Research

Lafarge Africa has just released Q4-2016 and 2016 full year results. The sum of N16.9 billion (from -N37.4 billion in nine months) was reported as end-2016 profit, helped by a daunting N39.7 billion tax credit. Before the tax credit, the loss before tax of N40.4 billion reported as at September 2016 (nine months) was cut down drastically to N22.8 billion at the end of the year, benefiting from (1) the price increase implemented late in September which boosted gross profit in the fourth quarter, (2) a forex gain of N6.1 billion in Q4, by our estimate, and (3) a N3.84 billion other income, also in Q4. The Directors are recommending N1.05/share dividend to shareholders.

Conference call presentation of the Quarter 4 & FY 2016 Results is scheduled to hold today. See details below:

Dial In Number(s):

• HD Webphone

• France: 0 800 902 688

• Johannesburg Neotel: 011 535 3500

• Johannesburg Telkom: 010 201 6700

• Kenya: 0207 602 021

• Nigeria: 01903 0040

• Other Countries: +27-10-201-6700

• Other Countries: +27-11-535-3500

• UK (Primary): 0 808 143 3720

• UK (Secondary): 0 808 1624 060

• USA and Canada (Primary): 1 800 921 0864

• USA and Canada (Secondary): 1 855 242 3083