1

Dangote Sugar Refinery Plc: Repackaging for Additional Markets

December 08-

2010

Disclaimer Policy

This publication is produced by FSDH Securities Limited (FSDH Sec) a subsidiary of First Securities Discount House Limited (FSDH) solely for the information of users who are expected to make their own investment

decisions without undue reliance on any information or opinions contained herein. The opinions contained in the report should not be interpreted as an offer to sell, or a solicitation of any offer to buy any investment. FSDH Sec may invest substantially in securities of

companies using information contained herein and may also perform or seek to perform investment services for companies mentioned herein. Whilst every care has been taken in preparing this document, no

responsibility or liability is accepted by any member of the FSDH for actions taken as a result of information provided in this publication.

FSDH Equity Research Report

2

RRREEEDDDUUUCCCEEE

Current Price N17.00

Fair Value N11.32

Beta 1.33

Alpha Coefficient 0.09

R2 28.59%

Z-Score 5.70

Executive Summary

Dangote Sugar Ref inery Plc (Dangote Sugar) was incorporated on January 4, 2005 as a public limited liability company.

The company commenced business in March 2000 as a sugar division of Dangote Industries Limited (DIL) and was listed

on the N igerian Stock Exchange (NSE) on March 8, 2007 following a successful In itial Public Offering (IPO) through an

Offer for Sale of 3billion shares at N18.00 per share. Prior to the IPO, all the issued and fu lly paid ordinary shares of the

company were held by DIL and Alhaji Aliko Dangote in the proportion of 99% and 1% respectively. Although the ownership

structure of the company has changed, DIL still has major ity shares in the company.

The company’s sugar refining factor y in Apapa Port, Lagos was commissioned in 2001 with an init ial capacity to process

600,000MT of raw sugar per annum. The refinery has since undergone two expansions, increasing the production capacity

to about 1.44million MT per annum, making it the largest sugar refinery in Sub-Saharan Africa and second largest in the

world. The company is currently working towards completing an expansion of the refinery by an addit ional 1million MT

annual capacity. Dangote Sugar ’s principal activities involve ref ining of sugar into edible sugar and sale of refined sugar.

The company is currently rebranding some of its brands in order to reach out to wider customers.

The focus of the company is to become a global, integrated, low cost sugar producer focused on maximizing long term

shareholders’ returns while establishing a leading presence in domestic and regional African markets, with increasing

international focus. As the second largest sugar refinery in the wor ld with new Ion Exchange Raising (IER) technology and

efficient 18MW power supply system generated in-house, Dangote Sugar has over 70% of the domest ic sugar market

share. Its state of the art world class sugar refinery and process is ISO 9001:2000 International Quality Management

Certificat ion.

As at December 2009, the total assets of Dangote Sugar were f inanced by a mix of equity and liabilities in the proportion of

52.87% and 47.13%, respectively. The total assets stood at N78.71bn, while tota l liabilities stood at N37.09bn. The short

term liabilities stood at N35.04bn, accounting for 94.46% of the total liabilities, while the long-term liabilities stood at

N2.06bn accounting for 5.54% of the total liabilities. The company did not have prior charge long term liabilit ies as at

December 2009. The debt ratio, which is the proportion of the company’s total assets that is financed by long term and

short term liabilities increased to 47.13% in 2009 from 43.91% in 2008. The relationship between the current assets and

current liabilit ies reflects a concurrent increase in current liabilities and current assets, but with the current liabilities

increasing faster than the current assets. Consequent ly, the current ratio declined to 1.74x in 2009 from 1.80x in 2008.

Similarly, the quick ratio dropped to 1.34x in 2009 and from 1.41x in 2008.

The challenging operating environment in 2009 impacted adversely on the cost structure of the company as the effort to

grow the turnover could not translate to improvements in profitability. Turnover increased marginally from N80.67bn in 2008

to N82.40bn in 2009, representing a growth of 2.14% but recorded a Compound Annual Decline Rate (CADR) of 0.55%

from 2006 to 2009. The analysis of the turnover by products shows that sugar accounted for 99.93% of the turnover while

molasses accounted for 0.07%. The return on equity stood at 31.69% in 2009, down from 67.03% in 2008. Also, the return

on assets stood at 24.89%, a decline from 51.86% recorded in 2008. Return on capital employed dropped from 88.94% in

2008 to 44.85% in 2009.

An investment in the shares of Dangote Sugar on March 2007 has grown by 27.93% as at the date of this report and

represents a CAGR of 8.56%. Applying two valuat ion methods to value the shares of Dangote Sugar; we arrive at a fair

value of N11.32 per share. We estimate a dividend per share of N1.05 for FY 2010 based on dividend payout of 75%.

Buying the stock at the current market price of N17 and the price drops to our fair value of N11.32 and adding the present

value of the 5-year forecast dividend, investors will earn a tota l loss of 9.85%. Relating this loss to the cost of Equity

estimated by CAPM at 23.24%, investment in Dangote Sugar’s shares at the current price will earn a negative alpha return

of 33.09%. The 2010 forward earnings yield based on our fa ir value generates 12.40%, while the 2010 forward Dividend

Yield based on N1.05 Dividend Per Share at our fair value generates 9.30%. The forward earnings and dividend yields at

current market price are 8.26% and 6.20%, respect ively.

3

FSDH Research

1.0 Corporate Information Dangote Sugar Refinery Plc (Dangote Sugar) was incorporated on January 4, 2005 as a public

limited liability company. The company commenced business in March 2000 as a sugar division of

Dangote Industries Limited (DIL) and was listed on the Nigerian Stock Exchange (NSE) on March 8,

2007 following a successful Initial Public Offering (IPO) through an Offer for Sale of 3billion shares at

N18.00 per share. Prior to the IPO, all the issued and fully paid ordinary shares of the company were

held by DIL and Alhaji Aliko Dangote in the proportion of 99% and 1% respectively. Although the

ownership structure of the company has changed, DIL s till has majority shares in the company

controlling about 67.66% of the ownership of the company while Alhaji Aliko Dangote controlled 3.71%

and the balance of 28.63% is held by other institutional and individual investors.

The company’s sugar refining factory in Apapa Port, Lagos was commissioned in 2001 with an initial

capacity to process 600,000MT of raw sugar per annum. The refinery has since undergone two

expansions, increasing the production capacity to about 1.44million MT per annum, making it the

largest sugar refinery in Sub-Saharan Africa and second largest in the world. In December 2007,

Dangote Sugar successfully exported its first consignment of 1,500MT of sugar to Ghana; the company

is currently working towards completing an expansion of the refinery by an additional 1million MT

annual capacity.

Dangote Sugar’s goal is to become a global, integrated, low cost sugar producer focused on

maximizing long term shareholder returns while establishing a leading presence in domestic and

regional African markets, with increasing international focus. As the second largest sugar refinery in the

world with new Ion Exchange Raising (IER) technology and efficient 18MW power supply system

generated in-house, Dangote Sugar has over 70% of the domestic sugar market share. Its state of the

art world class sugar refinery and process is ISO 9001:2000 Inte rnational Quality Management

Certification.

The company has won several awards as an attestation to its market leadership and commitment to its

goals.

1.1 Business: Dangote Sugar’s principal activities involve the refining of sugar into edible sugar and

sale of refined sugar. The company produces and packages unfortified and Vitamin A -Fortified White

Sugar for direct consumption under the brand name Dangote Sugar in 50kg bags. Its Vitamin A

Fortified sugar is a fine white granulated sugar, refined to the highest quality and dissolves easily. This

all purpose sugar is ideal for table use, baking and sweetening of beverages. Its Unfortified Industrial

White Sugar product is a specially processed sugar grade used by pharmaceuticals, food and

beverages manufacturing companies.

In order to meet the changing needs of the retail consumers, capture additional market, stay ahead of

the pack in the immediate markets and enhance the value for the company and all stakeholders ,

Dangote Sugar has embarked on repackaging project tagged “Retail Pack Project”. It is intended that

the packaging of these customer friendly packages will make the Vitamin A fortified refined sugar

available in 1kg, 250g and 500g. The Chairman of the company, Alhaji Aliko Dangote notes that the

company’s focus is on continued growth and expansion.

Although the ownership structure of the company has

changed, DIL still has majority

shares in the company.

The refinery has since undergone two expansions, increasing the production capacity to about 1.44million MT per annum, making it the largest sugar refinery in Sub-Saharan Africa and second

largest in the world.

Dangote Sugar’s principal activities involve the refining of sugar into edible sugar and

sale of refined sugar

4

FSDH Research

2.0 Review of Nigerian Economy

Provisional data from the National Bureau of Statistics (NBS) indicates that Nigeria’s Gross Domestic

Product (GDP) grew by 7.69% in Q2 2010, slightly higher than the revised 7.36% as at Q1, 2010.

Overall, the Nigerian economy was relatively stable with mixed outcomes. According to Central Bank of

Nigeria (CBN) growth rates in major monetary aggregates were below targets in HY1, 2010. Aggregate

credit to the economy grew by 12.38% lower than the target of 55.57% in 2010, while the growth in

credit to the private sector contracted by 1.88% against the growth target of 31.54% in 2010. Inflatio n

rate (year-on-year) moderated but it remained at double digit at the end of 2009 and stood at 13.4% as

at October, 2010. The exchange rate, which remained volatile in 2009, remained stable in HY1, 2010.

Interest rates, particularly, inter-bank rates which rose in most part of 2009 as a fall out of the global

economic and financial crises, have moderated considerably in the face of huge liquidity in the inter-

bank market and quantitative easing strategy of the CBN to salvage the banking system from an

imminent collapse. However, the reluctance of banks to extend credit to the private sector remains a

big threat to domestic real sector. In addition, the recent decision of the MPC to hike rate is a

disincentive to real sector borrowing. Thus, the resolution of the credit crisis will help to boost economic

growth in the domestic economy.

We reiterate the need for the nation’s economic managers to implement policies that can lay a solid

foundation for the economy in the medium to long run especially in the area of agriculture and

manufacturing in order to broaden the revenue base of the country. The President, Dr. Goodluck

Table 1: Shareholding Structure as at December 31, 2009

Shareholders No of Shares Held % of Shareholding

Dangote Industries Limited 8,119,200,000 67.66

Others 3,880,800,000 32.34

Total 12,000,000,000 100.00

Table 3: Company Summary

Ticker DANGSUGAR

Sector Food/Beverages &

Tobacco

Date of Incorporation January 04, 2005

Date of Listing March 08, 2007

Financial Year End December

Number of Fully Paid Share 12,000,000,000

Current Capitalization(NGN) 204,000,000,000

NSE Capitalization (NGN) 7,885,061,414,411

% of NSE Capitalisation 2.59

52 Week high NGN 21.00

52 Week low NGN 14.14

YTD Return (%) 19.21

52 Weeks Average Volu me Traded 3,523,922

Trailing EPS NGN 1.08

Trailing P/E ratio (X) 15.74

Table 2: Directors’ Shareholding as at May 31 2010

Director Position No of

Shares

Alhaji Aliko Dangote Chairman 444,710,239

Alhaji Sani Dangote Non Ex-Director Nil

Mr. Suleiman Olarinde Ag. Mgr. Director/CEO

Nil

Mr. Olakunle Alake Non Ex-Director 6,864,000

Ms. Bennedikter Molokwu

Non Ex-Director 1,383,400

Dr. Konyinsola Ajayi (SAN)

Non Ex-Director Nil

Mr. Uzoma Nwankwo Non Ex-Director 892,832

Alhaji Abdu Dantata Non Ex-Director Nil

Provisional data from the

National Bureau of Statistics

(NBS) indicates that Nigeria’s

Gross Domestic Product (GDP)

grew by 7.69% in Q2 2010,

slightly higher than the revised

7.36% as at Q1, 2010.

We reiterate the need for the

nation’s economic managers to

implement polic ies that can lay

a solid foundation for the economy in the medium to long

run especially in the area of

agriculture and manufacturing in

order to broaden the revenue

base of the country.

5

FSDH Research

Jonathan appears determined in laying a strong foundation to overcome the problem in the power

(electricity) industry by bringing the sector under his office. There are also plans to privatize Power

Holding Corporation of Nigeria (PHCN) in order to run the corporation more efficiently and profitably in

the interest of the consumers.

The outlook of the foreign exchange rate in the medium term appears stable as the CBN is determined

to meet all genuine demand for foreign exchange. The rising price of oil at the international market is

also a good development for the foreign exchange market.

We believe that the current administration would implement policies to diversify the productive base of

the economy so that the economy is less vulnerable to international oil price volatility. Furthermore, the

new administration is embarking on a number of reform agenda to stimulate the economy and

strengthen public expenditure management especially in job creation.

3.0 Review of Nigerian Manufacturing Sector

Our analysis of the operating environment shows that the manufacturing and distribution businesses in

Nigeria are faced with infrastructure challenges (relevant transportation and power). While government

is currently working to improve roads across the country through Public-Private-Participation (PPP)

arrangement, we believe the same effort should be extended to the rail transport across the country . In

order to meet their power needs, manufacturing companies invest heavily in alternative so urces of

power. The cost of acquiring and maintaining these equipments add substantially to the operating

costs. While the manufacturing firms sometimes shift some of these costs to their customers in form of

increase in the price of goods, the firms bear a portion of it. The extent of the shiftability also depends

on the elasticity of the product in question to price. Sometimes we notice a drop in demand, as a result

of increase in price. In addition to the problem of infrastructure, the current financial crisis and the

unwillingness of banks to lend has reduced credit to the real sector, while the available credit

commands high interest rates, thus increasing financing costs for the manufacturers. The combination

of these factors has limited the growth of the manufacturing sector in the country, despite the huge

market potentials within and in the neighboring countries. In the last few years, the manufacturing

sector has not witnessed significant improvement as the capacity utilization fluctuates between 35%

and 40%. Its contribution to the Gross Domestic Product (GDP) as at Q2, 2010 was 3.93% higher than

1.14% as at Q1, 2010, while the growth rate is 7.31%, higher than 6.42% in Q1, 2010. This is

considered too low for a country that has huge consumption power like Nigeria; having an estimated

market size of 150million. One of the opportunities for the operators in the Fast Moving Consumer

Goods (FMCG) industry is the growing middle class whose tastes and life style are changing for high

quality consumer goods and products.

The Nigerian manufacturing industry is relatively small in relation to the size of the domestic economy.

The sector has not grown remarkably over the years due to factors such as; neglect of the sector for

crude oil, epileptic power supply, collapsing infrastructure, among others. Although the Nigerian

government maintains that the industry is the main instrument of rapid growth, structural change and

self sufficiency, it has not pursued specific policies that can improve the performance of the

manufacturing industry. We however commend the recent efforts of the CBN to make soft loans

There are plans to privatize

Power Holding Corporation of

Nigeria (PHCN) in order to run

the corporation more efficiently

and profit ably in the interest of

the consumers.

The outlook of the foreign exchange rate in the medium term appears stable as the CBN is determined to meet all genuine demand for foreign

exchange.

The sector has not grown remarkably over the years due to factors such as; neglect of the sector for crude oil, epileptic power supply, collapsing infrastructure,

among others.

6

FSDH Research

available to Small and Medium Scale Enterprises (SMEs) and to have an arrangement with Nigerian

banks to restructure some of the loans extended to the manufacturers. Some quoted manufacturing

companies, especially the highly capitalized stocks, managed to show impressive performance in the

face of the global economic and financial meltdown. While others, especially those with imported inputs

or had credit lines from foreign banks, which they did not hedge against exchange rate movement,

were hit by exchange rate losses. The fact that some of the Fast Moving Consumer Goods (FMCGs)

have low elasticity of demand to economic factors helped to insulate the revenue of the operators.

However, we note the possible negative impact of the current job cuts in the financial sector on

aggregate purchasing power in the long run.

4.0 Dangote Sugar Corporate Governance

The Board of Directors overseas the corporate governance procedure to ensure that it conforms to best

practice. It also constantly reviews the procedures in line with the dynamics of the business

environment. The Board ensures that its business is conducted in a fair manner. The Board delegates

the day-to-day running of the company’s affairs to the Managing Director/Chief Executive Officer

(MD/CEO). Also, an executive management committee supports the MD/CEO in this task. The Board

currently consists of eight members, the Chairman, Acting Managing Director and 6 non-executive

directors, out of which two are Independent Directors.

The standing committees of the company consist of:

The Finance Committee

The Establishment Committee, and

The Audit Committee

The Finance Committee is responsible for the assessment and monitoring of all risks associated with

the operations of the company; development and monitoring of the implementation of internal control

systems by management and assisting the Board in its responsibility relating to the o versight of the

company’s financial credit and risk management policies and procedures.

The Establishment Committee is responsible for reviewing the policy framework for employees and

remuneration issues; it also makes recommendations to the Board on all new Board appointments. The

Audit Committee ensures the independence and objectivity of the audit; reviewing the adequacy and

effectiveness of the company’s internal control policies prior to endorsement by the Board; and

directing and supervising investigations into matters within its scope.

4.1 Strategic Focus

Dangote Sugar’s goal is to become a global, integrated, low cost sugar producer focused on

maximizing long term shareholders ’ return while establishing a leading presence in domestic and

regional African markets, with increasing international focus. As the second largest sugar refinery in the

world with new Ion Exchange Raising (IER) technology and efficient 18MW power supply system

generated in-house, the company has over 70% of the domestic sugar market share.

Dangote Sugar’s goal is to become a global, integrated, low cost sugar producer

focused on maximizing long term shareholders’ return while establishing a leading presence in domestic and regional African markets, with increasing international focus.

The fact that some of the Fast Moving Consumer Goods (FMCGs) have low elasticity of demand to economic factors helped to insulate the revenue

of the operators.

7

FSDH Research

Dangote Sugar’s strategic plans to reach these objectives include the following:

Expansion of current production capacity of existing refinery by 1.1million MT to a total of

2.5million MT refining capacity and become the largest sugar refinery in the world ;

Acquisition of domestic sugar producer, Savannah Sugar Company Limited, currently owned

by Dangote Industries Limited, to boost local sugar production and reduce cost of importing

raw sugar;

Continued exploitation of the favourable dynamics of the world sugar market to expand export

of products to other African countries and develop production capacity in Algeria;

Continued improvement on operational efficiencies to drive down cost and improve p rofitability;

Maximise local market opportunities with the expansion of our industrial customer base and

introduction of new packaging line for retail consumers;

Acquisition of vessel to improve fright cost and working capital management.

4.2 Strengths & Opportunities

Good liquidity position.

Good credit history in local financial market.

Strong roots in local markets and first-hand knowledge of local culture.

Expansion of production capacity.

Relative inelasticity of product demand.

Stable exchange rate.

4.3 Weaknesses & Threats

Reduction in purchasing power of the citizenry due to rising unemployment.

Inflationary pressure from global demand for commodities.

Inadequate physical infrastructure in the country.

Credit crunch in the system due to unwillingness of banks to lend money to the real sector.

Deteriorating margins.

5.0 Analysis & Recommendation Our analysis was based on Dangote Sugar’s Account for the period ended 12 months December 31, 2009, compared

with 12 months December 2008. For the computation of CAGR, the base period is 2006.

5.1 Capital Structure

Total shareholders’ funds of Dangote Sugar grew from

N32.63bn in 2008 to N41.61bn in 2009, translating to

an increase of 27.54% between the periods. The

increase in total shareholders’ fund was primarily

driven by 44.25% growth in revenue reserves which

was boosted by good profitability. The shareholders’

funds was made up of paid-up share capital, share

premium and revaluation reserves in the

14.42%

15.19%

70.39%

Composition of Shareholders' Funds - 2009

Paid Up Share capital

Share Premium

Revenue Reserve

The increase in total shareholders’ funds was primarily driven by 44.25% growth in revenue reserves which was boosted by good

profitability.

8

FSDH Research

proportion of 14.42%,

15.19% and 70.39%,

respectively. The Compound Annual Growth Rate (CAGR) in the total shareholde rs’ funds between

2006 and 2009 stood at 14.15%. The long term assets of Dangote Sugar stood at N17.66bn in 2009 up

from N14.63bn in 2008 and represented a growth of 20.74%. The CAGR between 2006 and 2009

stood at 7.38%. The long term assets is made up of fixed assets which stood at N16.70bn a growth of

21.38% from 13.76bn in 2008 and the amount Dangote Sugar committed in the construction of a

refinery in Algeria, through a wholly owned company named Dangote Sucreire SPA which stood at

N968.13mn in 2009 an increase of 10.16% from N875.26mn in 2008.

The current assets increased by 40.19% to N61.04bn in 2009 from N43.54bn in 2008 on account of

increases in due from related companies which increased by 213.29% to N17.33bn from N5.53bn in

2008; cash & bank balances, increased by 15.27% to N22.88bn in 2009 from N19.85bn in 2008; stocks

increased by 52.24% to N14.09bn from N9.26bn in 2008 and trade debtors which increased by 10.08%

to N5.95bn from N5.4bn in 2008 while other debtors & prepayments decreased by 77.44% to

N790.35mn and from N3.50bn in 2008.

Due from DIL which stood at N15.07bn as at December, 2009 represent 86.91% of the total due from

related companies. The company said that related party transaction arose from collection from

customers and payment to suppliers by DIL on behalf of Dangote Sugar in addition to the utilization of

energy which is surplus to the company’s requirement. We are of the opinion this related arrangement

may lead to underutilization of resources for the individual companies. DIL should free -up this income

for Dangote Sugar. The total due from related companies accounted for about 22.02% of the total

assets of the company. Adding the long term assets and the current assets of the company together,

the total assets grew by 35.30% to N78.71bn in 2009 from N58.17bn in 2008, representing a

Compound Annual Growth Rate (CAGR) of 26.37% between 2005 and 2009.

The total assets of Dangote Sugar were financed by a mix of equity and liabilities in the proportion of

52.87% and 47.13%, respectively. As at December 2009, the total assets stood at N78.71bn, while

total liabilities stood at N37.09bn. The short term liabilities stood at N35.04bn, accounting for 94.46% of

the total liabilities, while the long-term liabilities stood at N2.06bn accounting for 5.54% of the total

liabilities. The company did not have prior charge long term liabilities as at December 2009.

The total assets of Dangote Sugar were financed by a mix of equity and liabilities in the proportion of 52.87% and 47.13%, respectively.

27,978 25,956

32,627

41,613

-

10,000

20,000

30,000

40,000

50,000

2006 2007 2008 2009

N'm

n

Shareholders' Funds (2006 - 2009)

28,188 28,306 33,923

43,668 39,000

50,124 58,174

78,707

-

20,000

40,000

60,000

80,000

100,000

2006 2007 2008 2009

N'm

n

Capital Employed vs. Total Asets (2006 - 2009)

Capital Employed Total Asset

We are of the opinion this related arrangement may lead to underutilization of resources

for the individual companies.

9

FSDH Research

Its long term liabilities are deferred taxation, which represented 70.68% of the long term liabilities and

staff gratuities representing 29.32% of the long term liabilities.

The company recorded improvement in its working capital in 2009 and maintained consistent decent

working capital since 2006. The working

capital stood at about N26.00bn at the end

of December 2009, a growth of 34.79%

from N19.29bn as at the end of the

previous year and recorded a CAGR of

23.16% between 2006 and 2009. The

prudent and efficiency gains from the

current management efforts have

enhanced the company working capital.

As a result of the good working capital

position the company maintained during the period, the current ratio and the quick ratio as at

December 2009 stood at 1.74x and 1.34x respectively.

The capital employed (i.e total assets less current liabilities) increased from N28.19bn in 2005 to

N43.67bn in 2009, representing a CAGR of 15.71% and achieved a growth of 28.73% between 2008

and 2009.

The debt ratio, which is the proportion of the company’s total assets that is financed by long term and

short term liabilities increased to 47.13% in 2009 from 43.91% in 2008.

5.2 Liquidity

The liquidity position of the company in 2009 remained strong and improved over 2008. The current

assets increased from N24.73bn in 2006 to N61.04bn in 2009, representing a CAGR of 35.14% and a

growth of 40.19% between 2008 and 2009. The major contributors to the growth between the

immediate two years are: cash & bank balances (up by 15.27% to N22.88n), due from related

companies (up 213.29% to N17.33bn), Stock (up 52.24% to N14.09bn) and trade debtors (up 10.08%

to N5.95bn). Similarly, the current liabilities increased from N10.81bn in 2006 to N35.040bn in 2009,

representing a CAGR of 47.99% between the period and an increase of 44.48% between 2008 and

2009. The relationship between the current assets and current liabilities reflects a concurrent increase

in current liabilities and current assets, but with the current liabilitie s increasing faster than the current

assets. Consequently, the current ratio declined to 1.74x in 2009 from 1.80x in 2008. Similarly, the

quick ratio dropped to 1.34x in 2009 and from 1.41x in 2008. Although the current ratio and the quick

ratio dropped between the last two years, the company still maintained very healthy short term liquidity

position. This indicates that it can meet its short term obligations as at when due.

13,920 14,271

19,292

26,004

-

5,000

10,000

15,000

20,000

25,000

30,000

2006 2007 2008 2009

N'm

n

Working Capital (2006 - 2009)

The company recorded improvement in its working capital in 2009 and maintained

consistent decent working

capital since 2006.

The liquidity position of the company in 2009 remained strong and improved over

2008.

10

FSDH Research

The cash received from customers increased marginally by 1.43% to N81.86bn in 2009 from N80.71bn

in 2008. The significant growth in cash payments to suppliers and employees which increased by

25.68% from N57.80bn in 2008 to N72.64bn in 2009 impacted heavily on the net cas h provided by

operating activities which declined from N13.82bn in 2008 to N8.10bn in 2009 representing a decline

of 41.37%. The increase in the cash payment can be linked to the increase in the price of raw sugar – it

major raw material during the period occasioned by the increase in global commodity prices and the

depreciation in the value of the local currency against the US$. There was additional capital investment

of N4.5bn in 2009 to capture addition market and bring the company’s products closer to its customers.

The major contributors to the capital investment are motor vehicles and assets under construction

accounting for 50.86% and 34.73% respectively. The project under construction is in respect of the

Algerian subsidiary and the Retail Pack Project. The company generated about N3.74bn from interest

income an increase of 30.31% from N2.88bn generated in 2008 on account of it good liquidity position.

The huge investment lead to net cash used up in investment activities of N857.11mn a reduction of

cash generated from investment activities of N1.36bn in 2008. The payment of generous dividend

during the period resulted in a net cash used up for financing activ ities of N4.2bn in 2009 down from

N15.22bn used up in 2008.

The net increase in cash & cash equivalents in 2009 stood at N3.04bn, an increase from a negative of

N46.61mn in 2008. The cash and cash equivalent as at December 30, 2009 stood at N22.88bn,

representing an increase of 15.34% from N19.83n in 2008.

5.3 Profitability

The challenging operating environment in 2009 impacted adversely on the cost structure of the

company as the effort to grow the turnover could not translate to improvements in profitability.

Turnover increased marginally from N80.67bn in 2008 to N82.40bn in 2009, represe nting a growth of

2.14% but recorded a Compound Annual Decline Rate (CADR) of 0.55% from 2006 to 2009. The

analysis of the turnover by products shows that sugar accounted for 99.93% of the turnover while

molasses accounted for 0.07%.

The project under construction

is in respect of the Algerian

subsidiary and the Retail Pack

Project.

The challenging operating

environment in 2009 impacted

adversely on the cost structure

of the company as the effort to

grow the turnover could not translate to improvements in profitability.

211 2,350 1,295 2,056

10,811

21,818 24,251

35,039

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2006 2007 2008 2009

N'm

n

Long Term vs. Current Liabilities (2006 - 2009)

Long Term Liabilities Short Term Liabilities

11

FSDH Research

The cost of sales increased by 23.79% from N49.79bn in 2008 to N61.64bn in 2009, higher than the

growth in turnover, thereby leading to a decline of 32.77% in Gross Profit (GP) from N30.88bn in 2008

to N20.76bn in 2009. Administrative expenses less depreciation increased by 26.13% to N3.36bn from

N2.66bn in 2008 while depreciation charge increased by 69.57% between 2008 and 2009. Earnings

Before Interest, Tax, Depreciation and Amortization (EBITDA), declined by 31.97% from N30.15bn in

2008 to N19.59bn in 2009, while Earnings Before Interest and Tax (EBIT) dropped by 35.08% from

N30.17bn in 2008 to N19.59bn in 2009. Over the last four years , EBITDA & EBIT recorded a CAGR of

4.90% and 3.73%, respectively.

Profit Before Tax rose from N16.66bn in 2006 to N19.59bn in 2009, representing a CAGR of 5.55%.

PAT stood at N13.19bn in 2009, down from N21.87bn in 2008, representing a decline of 39.71%.

Although increased competition and the challenging operating environment have had adverse impact

on the operations of the company in the last few years, we note that the company management has

deployed its scarce resources to increase shareholders’ wealth. The return on equity stood at 31.69%

in 2009, down from 67.03% in 2008. Also, the return on assets stood at 24.89%, a decline from 51.86%

recorded in 2008. Return on capital employed dropped from 88.94% in 2008 to 44.85% in 2009.

Dangote Sugar’s GP margin decreased to 25.20% in 2009 from 38.28% in 2008. EBITDA margin and

PBT margin dropped to 25.67% and 23.77% in 2009 from 38.55% and 37.38% in 2008, respectively.

The contribution of staff to the company’s profitability also declined between 2008 and 2009, as PBT

We note that the company management has deployed its scarce resources to increase

shareholders’ wealth.

83,768

80,649 80,671

82,396

79,000

80,000

81,000

82,000

83,000

84,000

85,000

2006 2007 2008 2009

N'm

nTurnover (2006-2009)

99.93% 0.07%

Turnover by Product--2009

Sale of Sugar Sale of Molasses

16,657

30,661 30,151

19,587 18,328

31,581 31,095

21,155

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2006 2007 2008 2009

N'm

n

PBT Vs EBITA (2006-2009)

PBT EBITDA

99.72% 0.28%

Gross Profit by Products--2009

Sale of Sugar Sale of Molasses

12

FSDH Research

per staff dropped to N26.26mn in 2009 from N40.47mn in 2008, while cost per staff increased from

N1.68mn in 2008 to N2.16mn in 2009.

Table 4: Profit & Loss Account (2006-2009) N’mn

2009 2008 Change (%) 2007 2006 CAGR ( %)

Turnover 82,396 80,671 2.14 80,649 83,768 (0.55)

Cost of Sales 61,636 49,790 23.79 48,184 63,624 (1.05)

Gross Profit 20,760 30,881 (32.77) 32,465 20,144 1.01

Operating Profit 19,587 30,171 (35.08) 30,663 17,552 3.73

EBITDA 21,155 31,095 (31.97) 31,581 18,328 4.90

PBT 19,587 30,151 (35.04) 30,661 16,657 5.55

Tax 6,401 8,280 (22.69) 9,182 - -

PAT 13,186 21,871 (39.71) 21,479 16,657 (7.49)

Balance Sheet (2006-2009) N’mn

2009 2008 Change (%) 2007 2006 CAGR (%)

Long Term Assets 17,665 14,631 20.74 14,036 14,268 7.38

Current Assets 61,043 43,544 40.19 36,088 24,732 35.14

Total Assets 78,707 58,174 35.30 50,124 39,000 26.37

Current Liabilities 35,039 24,251 44.48 21,818 10,811 47.99

Long Term Liabilities 2,056 1,295 58.73 2,350 211 113.64

Total Liabilities 37,094 25,546 45.21 24,168 11,022 49.86

Working Capital 26,004 19,292 34.79 14,271 13,920 23.16

Total Equity 41,613 32,627 27.54 25,956 27,978 14.15

Table 5: Key Financial Ratio(2006-2009)

2009 2008 2007 2006

Gross Profit Margin (%) 25.20 38.28 40.25 24.05

EBITDA Margin(%) 25.67 38.55 39.16 21.88

PBT Margin (%) 23.77 37.38 38.02 19.88

ROE (%) 31.69 67.03 82.75 59.54

ROCE (%) 44.85 88.94 108.32 62.27

Collection Days 82.93 65.98 49.55 46.88

Payment Days 26.34 24.44 24.60 23.92

Current Ratio (x) 1.74 1.80 1.65 2.29

Debt Ratio (%) 1.34 1.41 1.47 1.98

Long Term Debt to Equity (%) 1.45 1.19 0.97 0.75

Interest Cover(x) 39,893 1,548 14.921 19.62

EPS(N) 1.10 1.82 2.15 1.67

DPS(N) 1.00 1.20 1.70 1.15

Net Asset Per Share(N) 3.47 2.72 2.60 2.80

13

FSDH Research

5.4 Management Efficiency

The number of times capital employed could generate revenue declined marginally from 2.38x in 2008

to 1.89x in 2009. This was on account of the tough operating environment in which the company

operated during the review period. We expect the ratio to improve further following the current efforts of

the FGN to improve infrastructure in the country and the improvement in the global economy which

should have positive impact on the country’s foreign exchange position. Dangote Sugar’s collection

period increased marginally to 26.34days in 2009 from 24.44days in 2008, but the increase was

compensated with the increase in the payment period from 65.98 days in 2008 to 82.93 days in 2009.

The Board members of Dangote Sugar are made up of people with proven track records in their

business endeavours. The executive directors also have varied experience and exposure required to

deliver superior value to their shareholders and positively impact other stakeholders.

5.5 Investment Analysis The good dividend policy of Dangote Sugar has made its shares attractive to different categories of

investor over the years. Although the operating environment has affected its earnings, it remained one

of the companies recognized for consistent dividend payment. The Earnings Per Share (EPS)

decreased from N1.67 in 2006 to N1.10 in 2009 leading to a CADR of 12.95% between 2006 and 2009

and dropped by 40% from N1.82 in 2008 to N1.10 in 2009. The company paid a dividend of N1.00 to its

shareholders whose names were in the register of members as at July 13, 2010 for the y ear ended

December 31, 2009 representing a drop of 17% from N1.20 paid in 2008. The average dividend payout

in the last four years is 76.26%. The net assets per share (NAPS) increased from N2.80 in 2005 to

N3.47 in 2009, representing a CAGR of 7.42%, and an increase of 27.54% between 2008 and 2009.

The Board members of Dangote Sugar are made up of people with proven

track records in their

business endeavours.

2.80 2.60 2.72

3.47

-

1.00

2.00

3.00

4.00

2006 2007 2008 2009

Net Asset Per Share (2006 - 2009)

1.67

2.15

1.82

1.10 1.15

1.70

1.20 1.00

-

0.50

1.00

1.50

2.00

2.50

2006 2007 2008 2009

(N)

EPS vs DPS (2006 - 2009)

EPS DPS

The good dividend policy of Dangote Sugar has made its shares attractive to different categories of investor over the years. The average dividend payout in the last four

years is 76.26%.

14

FSDH Research

5.6 Value Added Distribution

The wealth created by the efforts of the company’s employees stood at N22.77bn in 2009, down from

N32.235bn in 2008, representing a decline of 29.61%. The value added was distributed amongst

employees, providers of capital, government, assets maintenance, and for company’s expansion in the

proportion of 7.09%, 6.88%, 25.72%, 0.002%, and 60.31% respectively.

6.0 Bankruptcy Test – Altman Z- Score Model

We used the Z-Score model developed by Edward Altan to determine the probability of Dangote Sugar

going into bankruptcy within 2 years from December, 2009. The result of the test shows that the

company scores a rating of 5.70 in 2009, meaning that it is a safe company for all stakeholders based

on the published financial for the period ended December, 2009. The 4 year Z-Score is presented on

the table and chart below.

The result of the test shows that the company scores a rating of 5.70 in 2009, meaning that it is a safe company for all stakeholders based on the published financial for the period ended December, 2009.

14.46 14.05

8.35

5.70

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

2006 2007 2008 2009

Z-SCORE (2006-2009)

7.09

6.88 25.72 0.0022

60.31

Distribution of Value Added - 2009

Employees Assets Maintainence Government Providers of Capital Company's Expansion

15

FSDH Research

7.0 Q1 2010 Unaudited Result Update

The unaudited Q1 2010 result of Dangote Sugar for the period ended March 31, 2010 showed that its

Turnover (TO) increased by 19.26% to N22.79bn, compared with N19.11bn in the corresponding

period of 2009. Profit Before Tax (PBT) increased marginally by 4.44% between 2009 and 2010 to

N5.84bn from N5.59bn in the corresponding period of 2009. The company made a tax provision of

N1.87Bn in Q1 2010, compared with N1.40bn in the corresponding period of 2009. This brought about

5.29% decrease in the company’s Profit After Tax (PAT), which stood at N3.97bn in 2010, compared

with N4.19bn in 2009.

The company’s profit margins decreased marginally in Q1, 2010 over Q1, 2009, but increased over the

FY December, 2009 figure. The PBT margin decreased to 25.62% in Q1, 2010 from 29.26% as at Q2,

2009, but up from 23.77% as at the end of the financial year in December, 2009. This shows that the

company’s total costs as a percentage of TO stand at 74.38%, higher than 70.74% recorded in the

corresponding period of 2009. PAT Margin currently stands at 17.43%, down from 21.94% in the

corresponding period of 2009, but up from 16% as at FY 2009. The result also indicates that the

percentage of TO, PBT, and PAT in the Q1, 2010 to the Full Year Audited TO, PBT and PAT for the

period ended December, 2009 are: 27.66%, 29.81% and 30.12%, respectively.

A cursory look at the balance sheet position as at Q1 2010 compared with the position as at December,

2009 shows that the company’s fixed assets increased during the review period. This may be linked to

the capacity expansion drive of the company during the period. Its fixed assets increased by 21.38% to

N16.70bn from N13.76bn in FY 2009. Stock increased by 52.25% to N14.09bn in Q1 2010 from

N9.26bn in FY 2009. The company should continue to make appropriate efforts in order to reduce its

stock level. Cash and bank balances increased from N19.85bn in FY 2009 to N22.88bn in Q1 2010.

Dangote Sugar’s working capital increased from N19.30bn in FY 2009 to N26bn in Q1 2010. Also, the

net assets increased by 27.54% to N41.61bn from N32.63bn as at FY 2009.

Table 6: Z-Score Model

2009 2008 2007 2006

OPBIT/Total Assets 0.25 0.52 0.61 0.45

Net Working Capital/Total Assets 0.33 0.33 0.28 0.36

Sales/Total Assets 1.05 1.39 1.61 2.15

Market Value of Equity/Total Liabilities 4.86 7.28 16.12 16.33

Accumulated Retained Earnings/Total Assets 0.37 0.35 0.29 0.43

Share Price (December) 15.01 15.50 38.95 18.00

Market Value of Equity 180,120 186,000 389,500 180,000

Z-Score 5.70 8.35 14.05 14.46

The company’s profit margins

decreased marginally in Q1,

2010 over Q1, 2009, but

increased over the FY

December, 2009 figure.

16

FSDH Research

8.0 Historical Return Analysis

An analysis of the historical return on the investment in the Ordinary Shares of Dangote Sugar between

March 08, 2007 when the stock was listed on the Nigerian Stock Exchange (NSE) and the date of this

report was fairly good despite the economic and financial crises that adversely affected the

performance of the company. The total return during the period was made up of bonus issue and

dividend payment that the investors enjoyed on their investments. The company has been consistent in

the payment of dividend.

Our illustration using N100,000 initial investment in March 08, 2007 grew to N127,930 as a result of

bonus issue and dividend earned. This resulted in a profit of N27,930 a return of 27.93% and a CAGR

of about 8.56%.The initial investment bought 5,079 units of shares, net of transaction costs. The total

dividend earned during the period was N24,318.25, while bonus issue during the period was 1,016

units. The share price depreciated by 10.05% from N18.90 in 2007 to N17.00 as at December 8, 2010.

9.0 Valuation

In arriving at a fair value for the ordinary shares of Dangote Sugar, we used two valuation methods

which are Discounted Future Earnings Method (DFE) and Discounted Free Cash Flow Method (DCF).

We project Turnover, Earnings Before Interest and Tax (EBIT), Earnings Before Interest Tax

Depreciation and Amortization (EBITDA), Profit After Tax (PAT) and Dividend Payment for the periods

ending December 2010, 2011, 2012, 2013 and 2014.

We estimate the Turnover of N91.05bn, N101.97bn, N112.68bn, N122.26bn and N132.65bn for

2010, 2011, 2012, 2013 and 2014, respectively. We estimate EBIT of N25.04bn, N31.61bn, N34.93bn,

N37.90bn and N41.12bn for the same period, based on EBIT Margin of 27.50% for 2010 and 31.00%

for 2011-2014. We estimate EBITDA of N26.99bn, N33.76bn, N37.27bn, N40.43bn and N43.85bn for

the same period.

Looking at our estimate of the capital expenditure of the company within the forecast period and the

notional tax on EBIT for the same period and adjusting for the net working capital, we arrived at Free

Cash Flow (FCF) of N15.66bn, N22.92bn, N25.36bn, N27.50bn and N29.93bn.Our forecast PAT of

N16.85bn, N21.28bn, N23.51bn, N25.51bn and N27.68bn is based on PAT margin of 18.51% for

2010 and 20.87% for 2011-2014. Using a dividend payout of 75% for the period we arrived at Dividend

Payment of N12.64bn, N15.96bn, N17.64bn, N19.13bn and N20.76bn. We applied a terminal growth

rate of 7.69% and a beta value of 1.33 based on the changes in the historical returns on the company

share price and the Nigerian Stock Exchange All Share Index (NSE ASI). We used a risk free rate of

9.90% and a market risk premium of 10.04%. Applying foregoing parameters on the Capital Asset

Pricing Model (CAPM), the cost of equity generates 23.24%, which is our cost of capital. The company

had no long term interest bearing debt in its capital structure as at the last audited account. Using 12bn

shares in issue, the DFE Model generates N10.96 per share and the DCF Model generates N11.62per

share. Applying a weight of 45% to the DFE and 55% to the DCF, we arrive at a value of N11.32 per

share, which is our fair value. Buying the stock at the current market price of

Our illustration using

N100,000 init ial investment in March 08, 2007 grew to N127,930 as a result of

bonus issue and dividend earned.

Applying a weight of 45% to

the DFE and 55% to the

DCF, we arrive at a value of

N11.32 per share, which is

our fair value.

17

FSDH Research

N17.00 and the price drops to our fair value of N11.32 and adding the present value of the 5-year

forecast dividend, investors will record a total loss of 9.85%. Relating this loss to the cost of Equity

estimated by CAPM at 23.24%, investment in Dangote Sugar shares at the current market price will

record a negative alpha return of 33.09%. The 2010 forward earnings yield based on our fair value generates

12.40%, while the 2010 forward Dividend Yield based on N1.05 Dividend Per Share at our fair value generates

9.30%.Both the forward earnings and dividend yields at current market price are 8.26% and 6.20% respectively.

Our valuation place a fair

price of N11.30 on the shares of Dangote Sugar

18

FSDH Research

Table 7: Valuation Forecast and Parameters – Discounted Free Cash Flow(DCF)

Year 2010 2011 2012 2013 2014 Terminal Value

Period 0.06 * 2 3 4 5

Revenue (mn) 91,047 101,973 112,680 122,258 132,650

EBIT(mn) 25,038 31,612 34,931 37,900 41,121

EBITDA (mn) 26,991 33,758 37,270 40,432 43,846

FCF(mn) 15,661 22,921 25,358 27,502 29,934 207.33

Discount Rate (%) 23.24 23.24 23.24 23.24 23.24

Discount Factor 0.9878 0.6584 0.5343 0.4335 0.3518

Present Value (mn) 15,470 15,092 13,548 11,923 10,530 72,935

Enterprise Value (mm) 139,498

Debt(mn) Nil

Equity Value(mn) 139,498

Number of Shares (mn) 12,000

Value Per Share(N) 11.62

* We use 0.06 for period 1

Table 8 : Valuation Forecast and Parameters – Discounted Future Earnings (DFE)

Year 2010 2011 2012 2013 2014 Terminal Value

Period 0.06 * 2 3 4 5

Revenue (mn) 91,047 101,973 112,680 122,258 132,650

PBT(mn) 24,786 31,294 34,580 37,519 40,708

TAX (mn) 7,932 10,014 11,066 12,006 13,027

PAT(mn) 16,855 21,280 23,514 25,513 27,682 191.73

Discount Rate (%) 23.24 23.24 23.24 23.24 23.24

Discount Factor 0.9878 0.6584 0.5343 0.4335 0.3518

Present Value (mn) 16,649 14,011 12,563 11,061 9,738 67,446

Enterprise Value (mm) 131,467

Debt(mn) Nil

Equity Value(mn) 131,467

Number of Shares(mn) 12,000

Value Per Share(N) 10.96

* We use 0.06 for period 1

Table 9 :Valuation Summary

Model Value(N) Weight Price(N)

Discounted Free Cash Flow (DCF) 11.62 55% 6.39

Discounted Future Earnings (DFE) 10.96 45% 4.93

Per Share Value 11.32

Price as at November 18, 2010 17.00

Total Loss (%)* 9.85

* The total loss is inclusive of the present value of the 5-year forecast dividend

19

FSDH Research

Table 10: Annual Capital Growth & Returns Analysis of N100,000 Investment in Dangote Sugar Refinery Plc since March 08, 2007

Value Receipt Period 2007 2008 2009 2010 Total

Holding As At January 5,079 5,079 6,095 6,095

Bonus Shares Received - 1,016 - - 1,016

Cumulated Holding 5,079 6,095 6,095 6,095

Dividend Earned 10,742 6,171 1,920 5,485 24,318

08-Dec-2010

Accumulated Shareholding 6,095

Increase in Shareholding (%) 20.00

Price (N) 17.00

Market Value (N) 103,612

Total Dividend (N) 24,318

Value of Investment (N) 127,930

Cost of Investment (N) 100,000

Profit (N) 27,930

% Increase 27.93

CAGR 8.56

Table 11: FSDH Research Earnings Forecast for Dangote Sugar Refinery (2010-2014)

2010 2011 2012 2013 2014

Turnover(N’mn) 91,047 101,973 112,680 122,258 132,650

EBIT(N’mn) 25,038 31,612 34,931 37,900 41,121

EBITDA(N’mn) 26,991 33,758 37,270 40,432 43,846

PBT(N’mn) 24,786 31,294 34,580 37,519 40,708

Tax(N’mn) 7,932 10,014 11,066 12,006 13,027

PAT(N’mn) 16,855 21,280 23,514 25,513 27,682

Dividend Payment(N’ mn) 12,641 15,960 17,636 19,135 20,761

EBIT Margin (%) 27.50 31.00 31.00 31.00 31.00

EBITDA Margin (%) 29.65 33.10 33.08 33.07 33.05

PBT Margin (%) 27.22 30.69 30.69 30.69 30.69

PAT Margin (%) 18.51 20.87 20.87 20.87 20.87

EPS(N) 1.40 1.77 1.96 2.13 2.31

DPS(N) 1.05 1.33 1.47 1.59 1.73

Earnings Yield (%)* 12.40 15.66 17.30 18.78 20.37

Dividend Yield (%)* 9.30 11.70 13.00 14.10 15.30

P/E Ratio(x)* 8.06 6.39 5.78 5.33 4.91

Number of Shares (mn) 12,000 12,000 12,000 12,000 12,000

Dividend Payout (%) 75.00 75.00 75.00 75.00 75.00

*At fair our Value

20

FSDH Research

Contacts:

For enquiries please contact us at our offices:

Lagos Office: UAC House (5th-8th Floors) 1/5 Odunlami Street, P.M.B 12913 Lagos. (Tel.) 234-1-2640160-9 (Fax) 234-1-2702890 Port Harcourt Office: Afribank Bank Building (2nd floor, 5 Trans Amadi Road, Port Harcourt(Tel) 234-084-463308 (Fax) 234-084-463174. Abuja office: Orji Uzor Kalu Plaza, Plot 979, 1st Avenue, Off Ahmadu Bello Way, Cadastral Zone AO, Central Business District, Abuja. (Tel) 234-09-6700535

(Website): www.fsdhgroup.com , www.fsdhsecurities.com

(Email) fsdhsecurities@fsdhgroup.com

Disclaimer Policy

This publication is produced by FSDH Securities (FSDH Sec) a subsidiary of First Securities Discount House

Limited (FSDH) solely for the information of users who are expected to make their own investment decisions

without undue reliance on any information or opinions contained herein. The opinions contained in the report

should not be interpreted as an offer to sell, or a solicitation of any offer to buy any investment. FSDH Sec may

invest substantially in securities of companies using information contained herein and may also perform or seek

to perform investment services for companies mentioned herein. Whilst every care has been taken in preparing

this document, no responsibility or liability is accepted by any member of FSDH or FSDH Sec. for actions taken

as a result of information provided in this publication.

Table 12: Comparable Analysis

Company DSR (Dec 09) Nestle (Dec 09) Flour Mills (Mar 10) NBC (Dec 09) Average

Turnover 82,395.71 68,317.30 206,608.02 90,195.98 111,879.25

Gross Profit 20,760.16 28,360.53 46,066.42 26,053.01 30,310.03

EBITDA 21,154.83 17,297.47 40,899.32 9,211.96 22,140.90

PBT 19,586.93 13,783.24 24,439.55 4,327.64 15,534.34

PAT 13,185.60 9,783.58 16,947.99 7,921.00 11,959.54

Total Assets 78,707.22 44,250.37 143,520.22 66,373.48 83,212.82

Current Liabilities 35,038.91 19,010.97 52,732.14 27,229.81 33,502.96

Long Term Liabilities 2,055.52 14,695.47 37,521.16 9,316.77 15,897.23

Interest Bearing Liabilities - 14,921.19 50,517.85 9,229.73 24,889.59

Working Capital 26,003.78 (165.21) 363.31 (8,004.34) 4,549.39

Capital Employed 43,668.32 25,239.40 90,788.08 39,143.67 49,709.87

Net Assets 41,612.80 10,543.94 53,266.92 29,826.90 33,812.64

EBITDA Margin(%) 25.67 25.32 19.80 10.21 20.25

Interest Cover(x) - 7.69 3.22 5.84 5.58

Debt Ratio (%) 47.13 76.17 62.89 41.03 56.81

Long Term Debt/Equity (%) - 113.06 56.61 - 84.84