April 24, 2018/Cordros Update

Conference call highlights – Purely as communicated (Cordros opinion not included)

Please see below, DANGCEM management’s commentary in today’s Q1-18 call:

• Higher Nigerian volume reflects improved post-recession activities. Improved monthly government revenue is supporting infrastructure spending. Cranes are back at construction sites in Abuja.

• Asides from the seemingly favourable environment, DANGCEM’s marketing initiatives are also supporting volume outturn.

• Volume growth of 10%, or even more, is achievable in 2018.

• Pan-Africa volume in Q1-18 was affected by regional conflict in Ethiopia, as well as plant shut downs in both Tanzania and Ghana.

• There was a deliberate shut down of by-road shipment of cement from Nigeria to Ghana owing to the high cost involved. Exports by sea, to Ghana, will commence early in 2019.

• There were price increases in Ethiopia (10%), South Africa (5%), and Tanzania (very marginal) during Q1-18.

• A bit of a price increase is still expected in Ethiopia, to fully cover the impact of last year’s currency devaluation.

• Price was increased by NGN50/bag in Nigeria this month, “in reaction to inflation”.

• There is strong likelihood that the pending pioneer approval in Nigeria will be received in Q2.