NASCON ALLIED INDUSTRIES

Investor Presentation

May 2016

Disclaimer

This presentation contains forward looking statements which revealManagement’s recent views and estimates. The forward looking statementscontain certain risks and uncertainties that could cause actual results to varymaterially from those contained in the forward looking statements. Potentialrisks and uncertainties include factors such as general economic conditions,foreign exchange fluctuations, pricing pressures and regulatory developments.

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Dangote IndustriesNigeria’s Premier Diversified Business Conglomerate

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Note

1. Capital IQ as of 5 May 2016

Business Activities

• Founded by Aliko Dangote in 1981, Dangote Industries is the largest and most diversified industrial conglomerate in West Africa with revenues in excess of $3bn

• The Group was originally established as a trading business with an initial focus on cement and over time, extended into trading cement, sugar, flour, salt and fish

• In 1990, the Group had grown into one of the largest trading companies in Nigeria and embarked on an ambitious construction programme, initially focused on the construction of flour mills, a sugar refinery and a pasta factory

• The Group’s activities now encompass cement manufacturing, agri-business, natural resources, logistics, real estate, telecoms, etc.

• NASCON Allied Industries operates as a fully independent subsidiary with ~36% listed on the Nigerian Stock Exchange (market cap of $110m)

– Rest of ownership: 64% Dangote Industries

• Fully integrated cement manufacturing and bagging group with projects and operations in Nigeria, Benin, Ghana, Senegal, South Africa and Zambia

• Existing production capacity of 36 Mtpa

Standalone entity

• Dangote Sugar Refinery plc is the largest sugar refinery in sub-Saharan Africa and one of the largest in the world

• Annual Refining capacity of 1.4 MMtpa

• 70% domestic market share

• NASCON was founded in 1973 and Dangote Group first invested in the company in 1991 before becoming the majority shareholder in 1996

• 567 KT per annum of installed salt production capacity

• Market Cap of $110m (1)

• Dangote Flour incorporates five flour and semolina mills located in strategic positions across Nigeria

• Production capacity of 5,000 MT per annum

• In 2012, sold 63.5% stake to Tiger Brands for ~ $190m

• Bought back 63.5% in 2015 for $1

NOODLES

LOGISTICS

REAL ESTATE

TECHNOLOGIES LIMITED

PASTA

PACKAGING MATERIALS

STEEL

OIL And GAS

FOOD & BEVERAGES

Industries

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Standalone entity

Key Milestones

Ownership Structure

DANGOTE INDUSTRIES LIMITED

OTHERS

NASCON Allied Industries

63.69% 36.31%

NASCON Allied Industries PLC commenced operations as a salt producer in 1973

Over the years, the company has successfully evolved into the largest salt producer and refiner in Sub-Sahara Africa

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1973 1991/1992

20071979

The Company was incorporated with the Federal Government as majority shareholder

Federal Government acquired the

minority shareholding, making

NASCON wholly owned by the

Federal Government

Reverse Takeover of NASCON by Dangote Salt Limited (DSL) as NASCON acquired assets, liabilities and business undertakings of DSL

2008 till date

Following stabilization of

operations, NASCON has

remained a dominant player in

the Nigeria's salt industry

Privatization of NASCON.

The Company was listed on the NSE in October 1992

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Company Overview

Largest Nigerian Salt Producer

• Production capacity of 567,000MT in 3 locations (Oregun, Port Harcourt & Apapa)

• 60% of the Nigerian salt market share

• Products packaged in 25 & 50kg bags of salt and 250g, 500g and 1kg Sachets

• Over 500 employees

Efficient Operations

• Salt production plants are strategically located at the ports in Apapa, Lagos and Port Harcourt in Rivers for easy accessibility to raw materials

• Low cost producer

• Energy efficient

• Strategic plant and depot locations

Front-line foods growth strategy to transform to a diversified foods producer in 2015

• Vegetable Oil

• Seasoning- DANQ

• Tomato paste

Listed and actively trading on the NSE since 1992

Salt Business Model

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Product Range

Diversified product

offering spanning the

commercial, corporate

and retail segments of

the market

Key revenue drivers

are 50kg edible salt

and refined sachet salt

Salt

567,000 MT

Apapa, Oregun, PHC

Installed Capacity

Location

3,744 MT

Otta

37,440 MT

OttaInstalled Capacity

Location

156,000 MT

Otta

New product category of

cooking ingredients

Flavour variants

Seasoning commission

Q2, 2015

Tomato paste

commissioned Q3, 2015

Vegetable oil

commissioned Q3, 2015

Tomato PasteSeasoning Vegetable oil

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• Dangote Industrial Salt• Dangote Tannery Salt• Dangote Pure Dried Vacuum (P.D.V) Salt• Dangote Butter Salt• Dangote Edible Salt• Dangote Kitchen Salt• Dangote Refined Salt in 250g, 500g & 1kg sachets

Product Distribution

East7%

West28%North

65%

Regional Sales

72%

28%

Distributors Corporates 7

Nigeria

EastWest

North

Major customer include manufacturers of seasonings, refined edible oil, processed leather, animal husbandry, noodles, water treatment, cement, confectioneries, oil industry

Effective and efficient storage and distribution network segmented by region which ensures products get to final consumers in a timely manner

The Company operates 7 warehouses in strategic locations in Nigeria including Lagos, Gombe, Port Harcourt, Sokoto, Makurdi, Obajana and Aba to ensure extensive market coverage

The warehouses have combined capacity of 9,000 MT of finished goods and 70,000 MT of raw salt

Over 200 own-trucks that move finished goods from the factory to customers and warehouses supported by third party commercial

Investment Highlights

Attractive Macro Fundamentals

• Favourable macro-economic environment for investments

• Strong salt market fundamentals characterized by potential upside of current low industrial consumption per capita

• High barrier to entry with capital intensive nature of business

Leading Market Position

• Transitioned from a moribund business in 1996 to the market leader with 60% market share

• Market share defended by low cost production, competitive pricing, high quality and standardised product, brand equity and customer loyalty

• Superior distribution network

• Established long standing relationships with high profile conglomerates and industrials

• Suitable platform to roll out products in the pipeline and derive captive income

Impressive Financial Performance

• High turnover and high margins driven by tight operating structure

• Effective cost management structure that keeps costs low and improves revenue

• Sustained EBITDA margins currently at about 28%

• Highly cash generative business

• Consistent strong margin track record

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Investment Highlights

Efficient Manufacturing Facilities

• State of the art manufacturing facility

• Efficient energy source with conversion to gas

• All products are NAFDAC approved and SON endorsed

• ISO 9000:2001 Certification

Clear Growth Strategy

• Clearly defined strategy to maintain leadership position in domestic and regional markets

• Diversification into tomato paste, seasoning and oil

• Backward integration for raw materials

• Penetrate market through already established distribution channels

• Projects expected to contribute 30% to turnover

Strong Management Team

• Competent and dynamic management team with deep expertise, skill and multi-decade experience in the foods sector

• Demonstrated in the successful turn around of the erstwhile National Salt Company of Nigeria into a functional and profitable Company

• Structured and focused sales and distribution team

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Nigerian Salt Market

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Per Capita Salt Consumption

2.2g

8.0g

5.0g 5.0g

8.0g

5.0g

9.5g

0

2

4

6

8

10

12

14

16

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Nigeria South Africa Ghana Kenya Morroco China Brazil

6.

10.

17.

10. 10. 10. 10.

Source: www.iodinenetwork.net

With an estimated consumption of 600,000 metric tonnes per household, animal and industries, the country’s annual salt import spend currently stands at an estimated amount of USD48 Million

Nigeria’s per capita consumption of salt varies between 2.2g and 6.3g daily, lower than other African countries and emerging markets.

The country’s population (largest in Africa) has historically provided a good base for the growth in salt consumption

Nigeria’s estimated population growth rate of 3% per annum and expected industrial growth (Local substitution of indirect uses of salt) is expected to further spur salt consumption in the medium to long term

In Nigeria, food processing accounts for the vast majority of salt consumptionamongst various other uses which include animal husbandry, leather making, waterconditioning, agriculture and industrial chemicals as extensively practiced in othercountries

kg

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Nigerian Economy

GDP growth rate 3%

• Manufacturing contribution to GDP

9.09%

• Agriculture contribution to GDP

24.18%

Food Inflation rate 12.8%

Exchange rate

• Official N199/$1

• Parallel market N320/$1

Operational Highlights

Salt

•Increased production to 363,819mt (2014: 337,431mt)

•New pricing roll out to customers

•Rehabilitation of Oregun plant ongoing

– Lines 1 and 2 completed

– Line 3 to be completed by the third quarter

•Increased use of third party trucks to support increased demand

•AGO and Gas supply challenges

•Customer Awards held in March

– March growth driven by visits from commercial leadership

•Sales: 369,054mt (2014: 328,112mt)

•Gained market share, now 65%

DANQ Seasoning

•Aggressive competition activity

•Ongoing re-focus on seasoning marketing and sales

•Trade show for Kaduna and Enugu completed in March

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Operational Highlights

Tomato Paste

•Production equipment challenges resolved in Q3

•Production paused after producing 1664mt in 2015 due to FX restrictions on raw material

•Currently in discussions with Dansa Foods to supply tomato concentrate

Vegetable Oil

•Production paused after production of 6537mt in 2015 due to FX restrictions on raw material

•Local production of crude palm oil insufficient

– Stocking up product from local suppliers to produce later in the year

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Financial Highlights: Jan-March 2016

Q12016 Q12015 ChangeComments

Sales (mt)108,662 82,524 31.7%

Production(mt)109,874 82,568 33.1%

Q12016N’B

Q12015N’B Change

Revenue 4.46 2.87 55.4%

Gross Profit 1.75 1.10 59.1%• Increased labour costs due to ongoing rehabilitation at Oregun, longer hours• Increased loading expense and third-party trucks inline with increased volumes

Gross Margin 39.2% 38.2% 0.9pp

EBITDA 1.24 0.87 42.5%

EBITDA Margin 27.8% 30.3% -2.5pp

Profit Before Tax 0.95 0.69 37.7%

PBT Margin 21.3% 24.0% -2.7pp

Profit After Tax 0.65 0.47 38.3%

Financial Highlights: Jan-March 2016

Balance Sheet 31st March 2016 31st March 2015

N’B N’B

Non Current Assets 6.82 7.56

Current Assets 10.07 5.98

Total Assets 16.89 13.55

Long Term Debt 0 0

Loans & Borrowings 0.04 0.39

Current Liabilities 8.85 5.86

Total Liabilities 8.85 6.77

Total Equity 8.04 6.78

Cash flow position 31st March 2016 31st March 2015

N’B N’B

Cash And Cash Equivalent At Beginning Of Period 2.55 0.33

Cash flow From Operating Activities 0.06 (0.25)

Capital Expenditure (0.06) (0.31)

Interest Paid 0 2.9

Cash And Cash Equivalent At End Of Period 2.43 2.55

Board & Management Team

Board of DirectorsTitle Background

Yemisi Ayeni Chairperson Audit, Corporate Planning & RestructuringPaul Farrer Chief Executive Officer Marketing, Distribution, OperationsFatima Dangote Executive Director Law, Strategy, AgricultureOlakunle Alake Non-Executive Director Corporate Finance, BankingAbdu Dantata Non-Executive Director Sales, Marketing, Logistics & DistributionHalima Dangote Non-Executive Director Business Analysis, Marketing, Leadership Knut Ulvmoen Non-Executive Director Corporate Finance, ManufacturingSada Ladan-Baki Non-Executive Director Marketing, Logistics & DistributionFatima Wali-Abdurrahman Independent Non-Executive Director Architecture, Real Estate, ConstructionChris Ogbechie Independent Non-Executive Director Marketing, Strategy & Corporate Governance

Management TeamTitle Background

Paul Farrer Chief Executive Officer Marketing, Distribution, OperationsFatima Dangote Executive Director, Commercial Law, Strategy, AgricultureAderemi Saka Chief Financial Officer Accounting, Finance & Business Strategy Adedayo Samuel Company Secretary & Legal Counsel Law, Company SecretarialGerhard Scheepers Head, Production Production Management & OperationsYahaya Fufore Head, Sales Sales & MarketingOlufemi Ashipa Head, Marketing Marketing, Branding & Product DevelopmentNura Shuaibuo Head, Supply Chain Mechanical Engineering & MaintenanceAnthony Uba Head, Internal Audit Internal Audit, Tax, FinanceShittu Adebowale Head, Human Resources HR & Personnel Management 15

Focus for 2016

Reinvest to support growth strategy

Gain significant market share with re-focus on the DANQ seasoning

Export to neighboring ECOWAS countries

Develop strategies to manage prevailing business conditions for Tomato Paste & Vegetable oil

Volume driven growth in west and eastern regions on the back of improved product quality, packaging and service delivery

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For further information:

Ayeesha AliyuInvestor Relations Lead Dangote Industries Limited+234 1 448 0815 -6 Ayeesha.Aliyu@dangote.com

www.nasconplc.com

Investor Relations

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