LAFARGE AFRICA : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

Lafarge Africa Plc

Unaudited Condensed Financial Statements

30 September 2023

Lafarge Africa Plc

Contents

Directors' and Other Corporate Information	3
Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income	4
Consolidated and Separate Statements of Financial Position	5
Consolidated and Separate Statements of Changes in Equity	6
Consolidated and Separate Statements of Cash Flows	8
Notes to the Consolidated and Separate Financial Statements	9

Lafarge Africa Plc

Directors' and Other Corporate Information

Company registration number

RC 1858

Directors
Mr. Adebode Adefioye	Chairman
Mr. Lolu Alade-Akinyemi	Group Managing Director/CCEO
Mrs. Elenda Giwa-Amu	Non-Executive Director
Mrs. Adenike Ogunlesi	Independent Non-Executive Director
Mrs. Karine Uzan Mercie (French)	Non-Executive Director
Mr. Khaled Abdel Aziz El Dokani (Egyptian)	Non-Executive Director
Mr. Gbenga Oyebode, MFR	Independent Non-Executive Director
Mrs. Oyinkan Adewale (FCA)	Independent Non-Executive Director
Mr. Kaspar Theiler (Swiss)	Non-Executive Director
Mr. Rajesh Surana (Indian) - (appointed w.e.f April 27, 2023)	Non-Executive Director
Mrs. Claudia Albertini - (appointed w.e.f 28th July 2023)	Non-Executive Director
Acting Chief Financial Officer
Mr Chinedu Richard
Company Secretary
Mrs. Adewunmi Alode
Company Registered Office
Lafarge Africa Plc
27B, Gerrard Road,
Ikoyi,
Lagos
Registrar
Cardinal Stone (Registrars) Limited
[formerly City Securities (Registrars) Limited]
335/337 Herbert Macaulay Road,
Yaba,
Lagos
Independent Auditors
Ernst & Young Professional Services
UBA House Marina Rd
Lagos-Island
Lagos
(appointed 28th April 2023)
Principal Bankers
Access Bank Plc
Citibank Nigeria Limited
Ecobank Nigeria Plc
First Bank of Nigeria Ltd
Guaranty Trust Bank Plc
Standard Chartered Bank Nigeria Ltd
Stanbic IBTC Bank Plc
United Bank for Africa Plc
Wema Bank Plc
Zenith Bank Plc
Globus Bank Limited
Union Bank of Nigeria Plc

3

Lafarge Africa Plc

Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income for the period ended 30 September, 2023

				Group			Company
		3months ended	3months ended	9months ended	9months ended	3months ended	3months ended	9months ended	9months ended
		30/09/2023	30/09/2022	30/09/2023	30/09/2022	30/09/2023	30/09/2022	30/09/2023	30/09/2022
	Notes	N'000	N'000	N'000	N'000	N'000	N'000	N'000	N'000
Revenue	3	91,400,205	83,265,798	289,081,398	269,852,450	83,286,737	77,947,448	264,967,798	246,265,243
Cost of sales (Production)	4	(46,732,598)	(44,562,627)	(141,018,646)	(135,078,559)	(46,455,241)	(39,132,049)	(128,007,473)	(116,950,067)
Gross profit		44,667,607	38,703,171	148,062,752	134,773,891	36,831,496	38,815,399	136,960,325	129,315,176
Selling and distribution costs	5	(20,558,923)	(25,000,948)	(60,834,982)	(62,654,051)	(15,957,770)	(23,469,337)	(53,367,638)	(58,073,463)
Administrative expenses	6	(7,161,007)	(5,776,677)	(18,410,276)	(15,889,581)	(6,009,117)	(5,831,677)	(17,180,587)	(15,636,756)
Other income	7	115,694	81,516	540,706	281,442	77,404	28,906	421,000	114,424
Impairment reversal/(charge) on receivables	8	382	1,611	(8,909)	43,645	2,665	569	(6,626)	44,753
Operating profit		17,063,753	8,008,673	69,349,291	56,555,346	14,944,678	9,543,860	66,826,474	55,764,134
Finance income	9 (a)	1,173,590	242,318	3,373,884	433,950	1,092,422	227,938	3,183,544	389,685
Finance costs	9 (b)	(12,396,199)	(1,181,701)	(11,566,820)	(3,041,374)	(11,465,012)	(448,091)	(10,911,936)	(1,626,172)
Profit before tax		5,841,144	7,069,290	61,156,355	53,947,922	4,572,088	9,323,707	59,098,082	54,527,647
Income tax expense	10	(2,015,313)	419,891	(21,851,700)	(9,048,383)	(1,550,231)	(184,243)	(21,098,065)	(9,124,687)
Profit after tax for the period		3,825,831	7,489,181	39,304,655	44,899,539	3,021,857	9,139,464	38,000,017	45,402,960
Other comprehensive income:
Other comprehensive (loss)/income for the
period, net of tax		-	-	-	-	-	-	-	-
Total comprehensive income for the period		3,825,831	7,489,181	39,304,655	44,899,539	3,021,857	9,139,464	38,000,017	45,402,960
Profit attributable to :
- Owners		3,825,831	7,489,181	39,304,655	44,899,539	3,021,857	9,139,464	38,000,017	45,402,960
- Non-controlling interests		-	-	-	-	-	-	-	-
		3,825,831	7,489,181	39,304,655	44,899,539	3,021,857	9,139,464	38,000,017	45,402,960
Total comprehensive income for the period is
attributable to:
- Owners		3,825,831	7,489,181	39,304,655	44,899,539	3,021,857	9,139,464	38,000,017	45,402,960
- Non-controlling interests		-	-	-	-	-	-	-	-
		3,825,831	7,489,181	39,304,655	44,899,539	3,021,857	9,139,464	38,000,017	45,402,960
Earnings per share attributable to the ordinary
equity holders of the Company:
Basic earnings per share (Kobo)	21	24	46	244	279	19	57	236	282

4

Lafarge Africa Plc

Consolidated and Separate Statements of Financial Position as at 30 September, 2023

			Group	Company
		30 September	31 December	30 September	31 December
		2023	2022	2023	2022
	Notes	N'000	N'000	N'000	N'000
ASSETS
Non-current assets
Property, plant and equipment	11	344,102,506	341,458,500	279,227,167	276,696,636
Intangible assets	12	79,938	91,182	79,938	91,181
Investments in subsidiaries	13.1	-	-	63,906,867	63,906,867
Other assets	16	59,995,682	60,851,702	55,048,484	57,167,949
Deferred tax assets	15	1,268,584	2,031,419	1,268,584	2,031,419
Total non-current assets		405,446,710	404,432,803	399,531,040	399,894,052
Current assets
Inventories	17	53,226,999	53,043,073	38,743,002	41,896,205
Trade and other receivables	18	7,180,808	6,353,825	53,375,383	43,149,848
Other assets	16	20,573,750	18,462,277	19,467,900	17,326,786
Other financial assets	14	24,311	21,000	16,828	14,335
Cash and cash equivalents	19	157,145,457	118,398,495	146,858,975	106,901,117
Total current assets		238,151,325	196,278,670	258,462,088	209,288,291
Total assets		643,598,035	600,711,473	657,993,128	609,182,343
LIABILITIES
Non-current liabilities
Loans and borrowings	22	749,347	1,530,387	333,393	529,850
Employee benefit obligations	25	2,529,458	2,410,849	2,115,377	2,042,726
Deferred income	24	946,794	1,094,611	929,794	1,012,843
Provisions	23	3,556,121	2,718,462	1,590,768	1,389,034
Deferred tax liabilities		25,050,993	8,472,328	16,781,323	-
Total non-current liabilities		32,832,713	16,226,637	21,750,655	4,974,453
Current liabilities
Loans and borrowings	22	38,622,096	35,062,463	36,027,469	33,255,574
Deferred income	24	206,986	261,924	110,732	110,732
Trade and other payables	26	102,571,850	80,797,501	115,794,935	90,874,972
Contract liabilities	27	37,222,312	46,019,970	36,272,947	40,410,912
Provisions	23	4,346,865	2,353,466	4,328,311	2,108,367
Current tax liabilities		4,604,145	3,887,507	3,647,852	3,171,530
Total current liabilities		187,574,254	168,382,831	196,182,246	169,932,087
Total liabilities		220,406,967	184,609,468	217,932,901	174,906,540
EQUITY
Share capital	20	8,053,899	8,053,899	8,053,899	8,053,899
Share premium	20.1	435,148,731	435,148,731	435,148,731	435,148,731
Retained earnings		234,117,495	227,028,432	190,535,576	184,751,152
Other reserves arising on business combination and re-		(254,129,057)	(254,129,057)	(193,677,979)	(193,677,979)
organisations
Capital and reserves attributable to owners		423,191,068	416,102,005	440,060,227	434,275,802
Non-controlling interests		-	-	-	-
Total equity		423,191,068	416,102,005	440,060,227	434,275,802
Total equity and liabilities		643,598,035	600,711,473	657,993,128	609,182,343

These financial statements were approved and authorised for issue by the board of directors on 30th October 2023 and were signed on its behalf by:

Adebode Adefioye	Lolu Alade-Akinyemi	Chinedu Richard
Chairman	Group Managing Director/CEO	Acting Chief Financial Officer
FRC/2017/IODN/00000016512	FRC/2020/001/00000020157	FRC/2023/PRO/ANAN/001/294596

5

Lafarge Africa Plc

Consolidated Statement of Changes in Equity for the period ended 30 September, 2023

Group		Attributable to equity holders of the parent
				Other reserves
				arising on business
	Share	Share	Retained	combination and re-
	capital	premium	earnings	organisations	Total equity
	N'000	N'000	N'000	N'000	N'000
Balance at 1 January 2022	8,053,899	435,148,731	189,487,103	(254,129,057)	378,560,676
Profit for the period ended 30 September 2022	-	-	44,899,539	-	44,899,539
Total comprehensive income for the period	-	-	44,899,539	-	44,899,539
Balance at 30 September 2022	8,053,899	435,148,731	234,386,642	(254,129,057)	423,460,215
Balance at 30 September 2022	8,053,899	435,148,731	234,386,642	(254,129,057)	423,460,215
Profit for the period (October 1 to December 31 2022)	-	-	8,747,917	-	8,747,917
Other comprehensive loss (Net of tax)	-	-	1,669	-	1,669
Total comprehensive income for the period	-	-	8,749,586	-	8,749,586
Transaction with owners:
Dividends declared			(16,107,796)		(16,107,796)
Total transaction with owners	-	-	(16,107,796)	-	(16,107,796)
Balance at 31 December 2022	8,053,899	435,148,731	227,028,432	(254,129,057)	416,102,005
Balance at 1 January 2023	8,053,899	435,148,731	227,028,432	(254,129,057)	416,102,005
Profit for the period ended 30 September 2023	-	-	39,304,655	-	39,304,655
Total comprehensive income for the period	-	-	39,304,655	-	39,304,655
Transaction with owners:
Dividends declared	-	-	(32,215,592)	-	(32,215,592)
Total transaction with owners	-	-	(32,215,592)	-	(32,215,592)
Balance at 30 September 2023	8,053,899	435,148,731	234,117,495	(254,129,057)	423,191,068

6

Lafarge Africa Plc

Consolidated Statement of Changes in Equity for the period ended 30 September, 2023

Company	Attributable to equity holders of the parent
				Other reserves arising on
	Share	Share	Retained	business combination and
	capital	premium	earnings	re-organisations	Total equity
	N'000	N'000	N'000	N'000	N'000
Balance at 1 January 2022	8,053,899	435,148,731	145,824,819	(193,677,979)	395,349,470
Profit for the period ended 30 September 2022	-	-	45,402,960	-	45,402,960
Total comprehensive income for the period	-	-	45,402,960	-	45,402,960
Balance at 30 September 2022	8,053,899	435,148,731	191,227,779	(193,677,979)	440,752,430
Balance at 30 September 2022	8,053,899	435,148,731	191,227,779	(193,677,979)	440,752,430
Profit for the period (October 1 to December 31 2022)	-	-	9,629,500	-	9,629,500
Other comprehensive loss (Net of tax)	-	-	1,669	-	1,669
Total comprehensive loss for the period	-	-	9,631,169	-	9,631,169
Transaction with owners:
Dividends declared	-	-	(16,107,796)	-	(16,107,796)
Total transaction with owners	-	-	(16,107,796)	-	(16,107,796)
At 31 December 2022	8,053,899	435,148,731	184,751,152	(193,677,979)	434,275,803
At 1 January 2023	8,053,899	435,148,731	184,751,152	(193,677,979)	434,275,803
Profit for the period ended 30 September 2023	-	-	38,000,017	-	38,000,017
Total comprehensive income for the period	-	-	38,000,017	-	38,000,017
Transaction with owners:
Dividends declared	-	-	(32,215,592)	-	(32,215,592)
Total transaction with owners	-	-	(32,215,592)	-	(32,215,592)
Balance at 30 September 2023	8,053,899	435,148,731	190,535,576	(193,677,979)	440,060,228

7

Lafarge Africa Plc

Consolidated and Separate Statements of Cash Flows for the period ended 30 September, 2023

		Group	Company
		30 September	30 September	30 September	30 September
		2023	2022	2023	2022
	Notes	N'000	N'000	N'000	N'000
Cash flows from operating activities:
Profit after tax		39,304,655	44,899,539	38,000,017	45,402,960
Adjustments to reconcile Profit for the period to
net cash flows:
Depreciation	11.2	20,461,141	18,398,835	18,212,615	16,303,308
Amortization of intangible assets	12	11,244	551,105	11,243	483,392
Other non-cash items	28.3	521,808	402,241	7,871	374,571
Net unrealized foreign exchange movement		231,020	(30,000)	17,296	175,405
Finance costs	9(b)	2,142,731	2,074,087	1,656,722	1,626,876
Finance income	9(a)	(3,373,884)	(433,950)	(3,183,544)	(389,685)
Income tax expense	10	21,851,700	9,048,383	21,098,065	9,124,687
Provisions and net movement on employee benefits	28.2	1,916,633	(654,574)	3,537,733	(572,763)
Change in net working capital	28.1	14,202,142	(21,246,329)	16,613,263	(24,904,983)
Cash flow generated from operations		97,269,190	53,009,337	95,971,281	47,623,766
Income taxes paid		(3,799,068)	(3,418,813)	(3,074,006)	(2,283,317)
Net cash flow generated from operating		93,470,122	49,590,524	92,897,274	45,340,449
activities
Cash flows from investing activities
Acquisition of property, plant and equipment	11.1	(22,788,652)	(11,589,549)	(20,334,799)	(10,247,344)
Interest income received		3,373,884	386,919	3,183,544	342,654
Net cash flow used in investing activities		(19,414,768)	(11,202,630)	(17,151,255)	(9,904,690)
Cash flows from financing activities
Interest paid		(1,584,203)	(1,413,787)	(1,307,051)	(1,280,020)
Dividend paid to equity holders of the company	26.2	(35,906,456)	(13,556,130)	(35,906,456)	(13,556,130)
Proceeds from loans and borrowings	22.3	7,889,209	22,573,560	7,014,412	21,552,233
Repayment of lease liabilities	22.3	(1,761,622)	(2,039,240)	(1,761,622)	(2,039,240)
Repayment of loans and borrowings	22.3	(3,434,194)	(11,930,081)	(2,784,843)	(11,090,572)
Net cash flow used in financing activities		(34,797,266)	(6,365,678)	(34,745,560)	(6,413,729)
Net increase in cash and cash equivalents		39,258,088	32,022,216	41,000,459	29,022,030
Cash and cash equivalents at the beginning of the	19.2	116,761,553	48,625,884	105,264,175	43,696,638
period
Effects of exchange rate changes on cash and cash		(1,379,429)	48,352	(1,241,486)	45,042
equivalents
Cash and cash equivalents at the end of the	19.2	154,640,212	80,696,452	145,023,148	72,763,710
period

8

Lafarge Africa Plc

Notes to the Consolidated and Separate Financial Statements for the period ended 30 September, 2023

• Business description
  Lafarge Africa Plc (Lafarge Africa) was incorporated in Nigeria on 26 February, 1959 and commenced business on 10 January 1961. The Company, formerly known as Lafarge Cement WAPCO Nigeria Plc, changed its name after a special resolution was passed by the shareholders at an Annual General Meeting held on Wednesday 9 July 2014. The change of name became effective with the acquisition of shares in Lafarge South Africa Holdings (Proprietary) Limited (LSAH), which were disposed of in 2019, United Cement Company of Nigeria Limited (UNICEM), AshakaCem Ltd (AshakaCem) and Atlas Cement Company Limited (Atlas). The Company's corporate head office is situated at 27B Gerrard Road, Ikoyi, Lagos which is the same as the registered office.
  Lafarge Africa is in the business of manufacturing and marketing of cement and other cementitious products such as Ready-Mix Concrete, Aggregates, Fly-Ash etc. On July 15, 2016, Lafarge S.A. France and Holcim Limited, Switzerland, two large global players, merged to form LafargeHolcim Group, based in Zurich, Switzerland. Consequently Lafarge Africa is now a subsidiary company of LafargeHolcim (now Holcim Group, by virtue of a name change resolution passed by the shareholders at an Annual General Meeting held on 4 May 2021).
  The Group's subsidiaries are as stated below;

30 September 2023	31 December 2022	30 September 2022
AshakaCem Limited	AshakaCem Limited	AshakaCem Limited
Wapsila Nigeria Limited	Wapsila Nigeria Limited	Wapsila Nigeria Limited

These consolidated and separate financial statements cover the financial period from 1 January 2023 to 30 September 2023, with September 2022 and December 2022 as comparative for Income statement and statement of financial position, respectively.

1.1 Shareholding structure Description

Issued Share Capital

Substantial Shareholdings (5% and above) Names of Shareholders

Caricement BV

Associated Intl Cement Ltd U.K Total Substantial Shareholdings

30 September 2023	30 September 2022
Units	Percentage	Units	Percentage
16,107,795,721	100%	16,107,795,721	100%
9,027,365,874	56.04%	9,027,365,874	56.04%
4,473,044,718	27.77%	4,473,044,718	27.77%
13,500,410,592	83.81%	13,500,410,592	83.81%

Details of Directors Shareholdings (direct and indirect), excluding directors' holding substantial interests

Name(s) of Directors
Mr. Adebode Adefioye	-	-	-	-
Mr. Khaled El Dokani	-	-	-	-
Mrs. Elenda Giwa-Amu	203,550	0.0015%	203,550	0.0015%
Mrs. Adenike Ogunlesi	-	-	-	-
Ms. Karine Uzan Mercie	-	-	-	-
Mr. Kaspar Theiler	-	-	-	-
Mrs. Claudia Albertini	-	-	-	-
Mr. Lolu Alade-Akinyemi	-	-	-
Mr. Gbenga Oyebode MFR	-	-	-	-
Mrs. Oyinkan Adewale	-	-	-	-
Total Directors' Shareholdings	203,550	0.0015%	203,550	0.0015%

Details of Other Influential shareholdings, if any (E.g. Government, Promoters)

Name(s) of Entities/ Government	-	-	-	-
Osun State Government		5,093,271	0.03%	5,093,271	0.03%
Total Other Influential Shareholdings		5,093,271	0.03%	5,093,271	0.03%
Free Float in Unit and Percentage		2,602,088,308	16.16%	2,602,088,308	16.16%
Free Float in Value (NGN)		N76,501,396,255.20		N63,751,163,546.00

9

Lafarge Africa Plc

Notes to the Consolidated and Separate Financial Statements for the period ended 30 September, 2023

Declaration:

1. A) Lafarge Africa Plc with a free float value of N76,501,396,255.20 as at September 29, 2023 is compliant with The Exchange's free float requirements for companies listed on the Main Board.

1. (B) Lafarge Africa Plc with a free float value of N63,751,163,546.00 as at September 29, 2022 is compliant with The Exchange's free float requirements for companies listed on the Main Board.

1.2 Securities Trading Policy

In compliance with Rule 17.15 Disclosure of Dealings in Issuers' Shares, Rulebook of the Exchange 2015 (Issuers Rule), Lafarge Africa Plc maintains a Security Trading Policy which guides Directors, Audit Committee members, employees and all individuals categorized as insiders as to their dealing in the Company's shares. The Policy undergoes periodic reviews by the Board and is updated accordingly. The Company has made specific inquiries of all its Directors and other insiders and is not aware of any infringement of the policy during the period under review.

• Summary of Material Accounting Policies
  The Group financial statements of Lafarge Africa Plc for the period ended 30 September 2023 have been prepared in accordance with International Financial Reporting Standards ("IFRS") and interpretations issued by the IFRS Interpretations Committee (IFRIC) applicable to companies reporting under IFRS and the requirements of the Companies and Allied Matters Act 2020 and the Financial Reporting Council of Nigeria Act, 2011.
  Lafarge Africa Plc Group has consistently applied the same accounting policies and methods of computation in its interim condensed consolidated and separate financial statements as in its annual financial statements. There were no new standards, interpretations and amendments , effective for the first time from 1st January 2023, which had a material effect on these financial statements.

2.1 Basis of preparation

1. Compliance with IFRS
   These interim condensed consolidated and separate financial statements of Lafarge Africa Plc Group have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2022 annual report. The financial statements were prepared on a going concern basis.
   The financial statements comprise the consolidated and separate statements of profit or loss and other comprehensive income, the consolidated and separate statements of financial position, the consolidated and separate statement of changes in equity, the consolidated and separate statement of cash flows and the notes to the financial statements.
2. Basis of measurement
   The financial statements have been prepared in accordance with the going concern assumption under the historical cost concepts, except for the following:
3. • non-derivativefinancial instruments - initially at fair value and subsequently at amortized cost using effective interest rate
   • derivative financial instruments - measured at fair value
   • defined benefit pension plans - plan assets measured at fair value
   • inventory - lower of cost and net realisable value
   • lease liabilities- measured at present value of future lease payments

The historical financial information is presented in Naira and all values are rounded to the nearest thousand (N'000), except where otherwise indicated. The accounting policies are applicable to both the Company and Group.

10