Dangote Cement Plc (DANGCEM) Earnings Call Transcript & Summary

Good morning, and good afternoon, ladies and gentlemen. Welcome to the Dangote Cement Q1 2020 Results Conference Call. [Operator Instructions] I will now hand the call over to Temi, Head of Investor Relations. Please go ahead.

Good afternoon, and welcome to Dangote Cement's Q1 2020 results call. My name is Temi Aduroja, Head of Investor Relations at Dangote Cement. On the call today, we have our group MD, Michel Puchercos; our Group CFO, Guillaume Moyen. We will have a question-and-answer session after the call, and the presentation can be found on the website. Over to you, Michel.

Thank you, Temi. Good afternoon, everybody. It's my pleasure to welcome you all to this conference call to discuss Dangote Cement's results for the first 3 months of 2020. Before I take you through our results, I hope that you and your families are more than staying safe. We are all currently faced with unprecedented challenges in the global COVID-19 pandemic. The COVID-19 pandemic is a social and economic phenomenon that is affecting all of us, both professionally and personally. At Dangote Cement, the health and safety of our employees, customers, suppliers and community is a core value. As such, we have put measures in place to protect our communities and help them overcome their hardships during these very difficult times. In addition, we are proactively monitoring key dimensions of our operations in order to prevent and mitigate adverse effect of the pandemic on our colleagues. Let us now move on to our Q1 2020 results and begin on Page 2 of the presentation, which shows our Q1 2020 performance. I am pleased to report that group revenue was up 3.8% to NGN 249 billion, supported by higher volumes and pricing in Nigeria. Group EBITDA was up 2.2% to NGN 114 billion, at a margin of 45.8%, owing to strong performance in Pan-Africa. On the operational side, group volumes were relatively flat at 6.3 million tonnes, despite the initial impact of COVID-19. We had a slight increase of 0.7% in our Nigerian volumes as domestic growth at 5% compensated for the absence of exports. In Pan-Africa, sales were slightly affected by lockdown in South Africa at the end of March, and therefore, was down 2.9% on Q1 2019. On Page 3, you can see the financial performance in more detail. Profit before tax was up 11.5% while earnings per share was up by 1.7% to NGN 3.6. We recorded a higher effective tax rate in Nigeria. Pioneer tax exemption for all remaining lines ended in the quarter, resulting in an increased Nigeria effective tax rate for 2020. In addition, there was NGN 42 billion in unrealized foreign exchange gains due to intercompany balances between DCP Nigeria and foreign subsidiary recorded in finance income in our Nigerian operation. This unrealized ForEx gain was driven by the decrease in value of the naira against U.S. dollars. When consolidating the accounts, most of the impact of these unrealized gains is canceled. The average interest rate is decreasing compared to 2019. The profit for the period and earnings per share are growing slightly compared to 2020. Turning to Page 4. You can see our first quarter EBITDA development in more detail. I am pleased to report that our Pan-African operations has achieved the highest ever quarterly EBITDA contribution at NGN 14.6 billion. While we still have a few underperforming units, the overall Pan-African performance is showing continuous improvement despite a challenging environment. Looking at Page 5, you can see that our net debt is just under NGN 191 billion as at March 31. Our balance sheet on Page 6 remains strong. On Pages 7 and 8, we demonstrate our robust capital structure. In April, Dangote Cement successfully completed the issuance of NGN 100 billion series 5 years bond under our NGN 300 billion Bond Programme. Transaction was 1.5x oversubscribed and represents a debit bond issuance in the debt capital market. Transaction represents the largest corporate bond issuance in Nigeria's debt capital market. We have started expanding our debt maturity profile and reducing short-term liability. In addition to strong operating cash flow, DCP also has over NGN 300 billion headroom with existing commercial papers and bond programs to firm growth and refinance short-term debt. DCP also has limited foreign currency debt exposure with just 24% of total debt exposed to the dollar and mainly outside Nigeria. On Page 9, you can see the Nigerian market performance in Q1 2020. I'm delighted to report that this was one of our stronger quarters in terms of volumes. We sold over 4 million tonnes in Nigeria, which was about 0.7% higher than sales in Q1 2019. Excluding Q1 2019 exports, volumes were up 5% year-on-year in the domestic market. We had a record-high revenue of NGN 179 billion, up 5.6% compared from Q1 2019. EBITDA remained strong at NGN 103 billion, with a margin of 57.6%, notably owing to lower discounting and rebates. Logistics and energy costs increased in Q1. While these increases are considered temporary as part of the COVID-19 measures, we have been deploying various initiatives to optimize DCP very competitive cost base in Nigeria and across our Pan-African operation. On Page 10, you can see our progress in the rest of Africa. Pan-African revenues of NGN 69.8 billion were relatively flat. Sales volume was slightly down due to lockdown in South Africa in the last week of March as a measure to curb the spread of COVID-19. We achieved a record high EBITDA of NGN 14.6 billion at 23.4%, supported by strong performance in Ethiopia and Senegal and a record high EBITDA margin of 21%, thanks to cash cost reduction efforts, price improvement in some countries and volume increase in some markets. Over the next pages from Page 11, you will find highlights from our Pan-African operations. We saw volume growth in Cameroon, Congo and Ethiopia. We maintained good market share, respectively, in these countries. On Page 15, in Ghana, Senegal and Sierra Leone, volumes were up as well. Over on Page 16, you will see that South Africa economy remains subdued and the cement market depressed owing to negative growth in the economy. Our sales there were down 1% from Q1 2019. We notably churned a lot of space in the last week of March, owing to the total lockdown the country. In Tanzania, our sales were down 13% compared to Q1 '19 as a result of daily production challenges in the quarter. In addition, high levels of rainfall made raw materials more challenging. Zambia economy is currently in recession. As a result, Dangote Cement Zambia's volume was down 39% compared to Q1 '19. However, there were price increases in the quarter, which offset partially the lower volume. On Page 14, we highlight our continued efforts on sustainability and governance with our 7 Sustainability Pillars and Dangote Way. Finally, on Page 15, our outlook for 2020. In the midst of COVID-19, we want to reassure our investors that we are proactively monitoring key dimensions of our operations in order to mitigate negative financial impact. We are closely controlling our capital expenses, working capital needs and fixed costs to maintain strong and resilient cash position. To maintain an optimal capital structure, we constantly consider appropriate options, further accessing the debt capital market in Nigeria. Given full lockdown in South Africa, Ghana, Congo and some parts of Nigeria from the end of March, April volumes were trending lower than the volumes and values during the same period last year. On a more positive note, firstly, the share buyback has been approved by SEC. We also begin exporting clinker to West and Central Africa from Nigeria this year. And finally, this day, the [ key ] Obajana Line 5 was filed. This will make DCP capacity at Obajana 16.3 million tonnes. Now I would like to open the call to the Q&A session, please. Thank you very much.

Thank you, Michel. I'll open the call for question and answers.

[Operator Instructions] Your first question is from [indiscernible].

So I just have a few questions on the Pan-African operation. So the first part is value fix price in Zambia [ by 37% ], again, by 34% OE. And then we have seen reporting decline of [ 37% ] and the [ CP economification ] in the 4Q as the utility price increase facility in value chain. That's the first question. And then the second question is on the manufacturing for, again, [indiscernible] other production expense. So I have a feedback, the contribution of other production expense which Q1 2019 was 1%, and then in Q4 -- in Q1 2020, increased 4%. I know you look at it on a year-on-year, this is significant [ 4.73% ]. Also I don't want to understand, I don't know [indiscernible] production expect [indiscernible]? That's my second one. And my third question was your trade and other receivables. So I noticed that there was a increase in trade and other receivables. So for FY 2019, it was receivable NGN 30 billion and then coming to Q1, there was -- it was NGN 42.2 billion. So like I don't want to [indiscernible] like what will be after [indiscernible] or then FY 2019, again, Q1 2020. And then the other [indiscernible] that and [indiscernible] is the final exposure of your [indiscernible] is [indiscernible] EBIT supposed to [indiscernible], in this stage to [indiscernible] you seem like [indiscernible]. So I'm just thinking about it in terms of how this is [ better in parts ] give our own finance costs. Another [indiscernible] effect that we see this year is at a more than [indiscernible] top 60 commodities and the [indiscernible] NGN 30 billion. So I understand that you have [indiscernible], also your outlook [indiscernible] of this COVID-19, how do you think that in terms of outlook [indiscernible] impact on the performance. And what you think we should be expecting for full year 2020? I think that is all my questions.

So Pan-African and manufacturing costs, Guillaume will answer you. Trade receivable and debt foreign exchange, our CFO will answer you as well.

Good morning. I am Arvind Pathak speaking, Deputy GMD. As regards to Zambia, your observation is absolutely right that the country's economic conditions is not doing very well. Now having realized this, if we just give you a slight overview of our Zambian operation. Our Zambian operation, the 2 measures that we took last year. One is we reduced the dependence on the local market. So we had a great emphasis on our quarter sales, especially the neighboring countries, Congo, DRC, which also is a major copper industry base. But somehow that country has been more resilient to the price drop, and we have significantly improved our performance of the exports. So besides other thing, it also brings us the dollar. The second thing, what we did is, having seen that the country is not going very great [indiscernible], we relooked into our footprint of the sales. And fortunately, in the copper bank area, which is the copper mining area, we are the only serious vision player in that region. Whereas in Lusaka, which is the capital of the country, there are 2 major competitors who are fighting. So we reallocate our footprint and worked on our strengths that is home market, and these 2 together has been able to increase our net realization because our logistic costs have been drastically reduced. This is all from my side from Zambia. And then my colleague, Guillaume, will speak of the other production costs and other receivables.

Thank you, Arvind. Good afternoon. [indiscernible] the production expense was going right relating to the other expenses, other production expenses. And this is mainly related to one of the challenge we reported last year and earlier this year in Ethiopia. We had some challenges at the mine operation and were requested to hire some specific equipment but only to manage the branding. This is what is reflected there. So basically, you will see a movement that we consider temporary. And it's classified as other in our P&L due to the fact that we usually do not -- we do not hire equipment, we usually own them. In terms of the interrelated party type of financing that we get, the question is twofold if I understand well. First one, what are the conditions? And is it hedged? Basically, the financing that we get from related parties is usually in U.S. dollar and is distributed across different locations in the company. This financing is done at market condition, so we applied [ arm's length ] rules in terms of defining the pricing we would put in financing. And in term of reading, it's only manageable when we can locally find economically available solutions to do that. I must say that unfortunately, in most of our countries of operations, deploying long-term rating on U.S. dollar is not economically viable. Okay. On the trade receivables, there was also an increase. This is compared to December, so not compared to last year. The trade receivables have been evolving, I would say, for 2 reasons. There is a seasonality effect at the end of the year. We had some acceleration of the upfront payment, which were notably related to potential price increase in Nigeria related to the increase of VAT. We've not been seeing the same factor replicating in March. And at the same time, the deployment of several credit teams that we have in place for several -- over several months now. And last year, I've been working in a more intense way during the months of February and March. So we see that also as a temporary variation, nothing which would be considered as a trend at the moment so it's just in our new closing cost of effect. Maybe there was the last question on…

Next question, please.

The next question is from [indiscernible].

Thank you very much to Dangote Cement. I just want to actually follow-up on the question from the previous speaker as well, which was -- maybe if you could elaborate a bit about the immediate impact of COVID-19 on the operations in, not only in Q1 but across April and May, what you've been seeing and the impact that you have seen on the operations for -- that you expect full year 2020?

Okay. So I will ask Guillaume to start, and I will conclude the answer to this question.

Good afternoon. This is Arvind Pathak, Deputy GMD. What we have seen so far is that -- we've already seen on almost 2 months passed after the quarter of Q2. And we look at the -- we want to understand the COVID-19 impact. We are trying to put it into 2 buckets, whether it's Nigeria or Benfica. For one, which is affected by lockdown and one which is not affected by lockdown that means there is a liberty to do the business. So there will be partial lockdowns, curfews, et cetera. So if you look at the Nigeria, initial part, we had a lockdown on [indiscernible] state, we had a lockdown in Lagos. So yes, surely, growth states were impacted. But then the balance of the states where -- I think there was no forced lockdown, what we are seeing surprising is that the overall, the impact we started with a lot of expectations that has hit very hardly on the bottom line on the [ Lagos ], we are not seeing that happen. And as the day is passing by, I think that things are changing and changing for the better. Contrary to that is in Pan-Africa. There were countries like South Africa, there were countries like Ghana, countries like Congo, which had a forced lockdown. So pre-lockdown, post-lockdown, to our surprise, we are doing better than what we are doing in the past. So overall, we don't see -- we will see a small delta because of the additional impact. So we don't see a big impact going forward on the total market.

And I will add to what has been said in terms of measures developed to protect people. And we are just looking at the journey of a worker from home back home and moving from home, taking the bus to the plant, working at the plant. According to -- is it a control room, is it a packing plant, is it a -- name it, mining valuations. So what kind of measures should we put in place with the masks, with the sanitizer, soap, including showers. How to manage people so that we can ensure full security, safety and head protection, social distancing. So it's a major -- a long list of details, which is reviewed twice a week with all business units in order to protect the business and also having in mind the business continuity plan. So in case we would have a consolidated or suspect person. Even through the tracing and having other people in isolation, we don't want to put a specific department at risk if all the -- in case, for example, in the department, one person is suspected and all the persons from that department are secondary contact, you could end up with the whole department stopped. So we are taking in consideration this risk, so that there is no -- very seamless operation. For the time being, we had -- okay, no incidents to report, thanks to all these measures. And of course, we don't take it for granted, and it's a daily fight. And it covers all other countries. Of course, it has to comply with the local regulations, very different from South Africa, with a total lockdown and plants being shut almost 3 weeks to Nigeria with lockdown in some states, border closure in orders, curfew, so we have a mix of an impact of different rules. So this is what we are following, very -- including producing masks, including our own mask, our own sanitizer, sharing with communities to have a larger coverage and protect as many people as possible. And of course, from an economic standpoint, we are not trust -- we are not an airline, we are not a restaurant, we are not tourism. So of course, the impact is much, much less on us compared to these industry very badly impacted.

Okay. Next question.

Your next question is from Paul [indiscernible].

Just a couple of quick questions. First of all, I think you mentioned production changes in Tanzania. I was wondering if you could give just a little bit more detail on that. Also, I would like to [indiscernible] on the status of the concession of your new grading plants in [indiscernible], and it was supposed to be finished by November so that could be delayed. And the last question is regarding -- particularly the impact of lower oil prices in Nigeria. I understand, and correct me I'm wrong, but I understand that 50% of fiscal review of Nigeria is derived from oil production. I was wondering if you have an idea of what that means for public construction in Nigeria in the months and the coming year.

Good morning. I'm Arvind Pathak, again. I will take up this question on Tanzania. Tanzania, when we have to look at production challenges, we're trying to defend but this was the first year where in really post-commissioning that we were called upon to run the plant continuously. Initially, as you are aware, we have some power plant challenges, et cetera. So this plant has really not seen the monsoon in the true sense. And Tanzania, this is the period when the rainfall comes. So any commissioning of the plant, be anywhere across the world, there are some challenges, especially during the -- monsoon time, which comes from -- mainly from the mice, which are open to atmosphere, the nature of the materials whether it is absorbs moisture, stickiness, which poses all sorts of problem in the coming mechanism whether it's charge through, et cetera. What was mentioned in our report, there's nothing any unusual which happened because this is like initial hiccups, which happened in any plant stabilization. And our team has taken a notice of all those points. We have made an extra plan. And as we speak, I can show you that almost 85% of those issues have been addressed. And going forward, I think the repeat of next year, we'll see a much stable operation.

Ivory cost.

Ivory cost is still because of the COVID-related measures, some of the construction activities at the site has been slightly impacted. So we still do not have a very precise rate because this is dependent upon getting the importing of the materials, getting the commissioning team. In the absence of that, we are unable to give you a precise date on that.

On the oil prices going down, impact on construction? Yes, to -- you have individual homebuilders, and for the time being, we have not seen them impacted to the extent of the drop in oil price. For the large construction companies, they are impacted by the lockdown more than the oil price itself. And there's -- not all the works resumed as of now. I'm referring to Nigeria as to answer your question. In terms of government, if I have in mind, all the declaration they gave to support the economy because of the lockdown, including money coming from outside into Nigeria, I believe there is a hope for restarting construction and spending more money in the economy. As mid-May or end of May, we have not seen it yet, but we expect it to come.

Next question?

The next question is from Janet.

My question really would be on -- for the bond, the NGN 300 billion bonds programs that we have planned. Can we expect that all of that would be issued this year? Or should we expect that [indiscernible] the next year? And similarly, like just my concern on the cash on your -- on cash positions for the share buyback program as well. Should we expect -- are we still sticking to the plan for 10% share buyback plan? And in that -- I don't know, should we expect all of that to be issued just like all of that carried out this year? Even if it's a little bit more 10% this year or because I know [indiscernible], you have a window [ evolution ] of about 12 months to carry out the buyback plan. So should we expect that to perhaps [indiscernible] next year? And just perhaps some context to what situation is like delivered by [indiscernible]? And then on the content for the energy handle of things as well, could you give an update on what's your power mix with energy [indiscernible] for your plant? What proportion -- how you -- goes on gas, on coal or what plans you have for the future? And also give us a context to how the devaluation of the naira like the gas contracts are you currently holding? What [indiscernible] will be carried out? They only carried out through [indiscernible]. Just to give us some context on that energy cost as well. And then lastly would be on the export terminal that you have, they're expected to start operation soon. Just -- I don't know if you give some context to how much volume do you expect to push out? Which countries are you targeting for that? And then also -- and in context to the previous export model, like what -- like how much costs -- are we expected to see some cost savings with this new terminal model adopting or like how much more cost can we expect on that one? These will that my question for now.

On the financing part of the situation and the cash position, maybe 2 general caveats. As the CEO was mentioning earlier, we are in context, which is relatively challenging for the company as a whole. And we are trying, obviously, to manage this challenging asset. So it leads to 2 type of approaches when it comes to cash. We are trying to secure funding at competitive cost in a market which is currently -- is locally relatively liquid in Nigeria. So you have seen us going for current issuance of the bonds at 12.5% in April. We recently went to the market to rollover some of our CP in the NGN 150 billion program, which allowed us to raise funding at very competitive costs. So there is a first focus on making sure that we maintain sufficient funding for the operation at competitive costs. The second aspect, obviously, is once we look at the future of the deployment of the programs which have been identified and, let's say, to be deployed in 2020, including the buyback, the approach of the company is to maintain a very pragmatic view on that. We look at this program as an additional tool for the company to deploy its liquidity, and we compare the deployment with the return of other operations or opportunities. So basically, we can say that it's a major progress for us to have been able to have the buyback program to the 2 bit of Dangote Cement to be in a position to increase value for the shareholders. The utilization of these 2 is obviously driven by the context. We've seen many companies outside of Nigeria and across the globe changing the deployment of their own buyback program, so we are looking at it cautiously. It's a new tool for us, so we need to be specific in the way we want to deploy and the timing will also be dependent on the market environment. The other part of the cash position equation for us is obviously to make sure that we can meet our commitments, be it from a debt standpoint or from a shareholder standpoint. So we are also working very precisely on these aspects and with anticipation, considering the market in which we operate. The part I can also indicate, which might be of interest is that, at the moment, we are operating with total debt for the book, which is exposed to U.S. dollar, up 24%, and it is mainly outside Nigeria. So technically, we are also trying to mitigate the exposure we could have with foreign currency in terms of repayments and meeting our operation.

Next question?

Good morning. DCP, they are responding to the question but there were 2 more questions in that earlier. One was regarding energy fuel mix, the second was export terminals. Fuel mix, I think DCP has been proactively taking action. You've seen that our energy costs are reduced. This has come strong because our biggest cost elements in our cement manufacturing is fuel cost. So one is that we have been continuously reducing our energy costs by being more efficient. And we do take pride that we are out of the -- not the best, one of the few more sufficient energy-consuming cement plants. Coming to the fuel per se, kind of these costs sometimes back, the industry had a big soft MPFO, and we had sales this as a nonsustainable model going forward. So we have started investing, and we have invested financially at one point of time, around 8 coal mills, which normally is not heard of in any row. As a result of which, we have today, a large percentage of the fuel mix coming from coal and to ensure that we insulate coal from the foreign exchange fluctuations or the availability, we have the captive mines. So this together has been mitigating, moving our mix fit from MPFO plus gas to gas and then gas to explode cause increasing. We started in a very small way thinking about alternative fuels in quarter 4, so that was just a conceptualization. And as we speak, this alternative fuel program is assuming a momentum. And going forward, we will find that very large percentage of our energy mix will come from alternate fuel. Whereby, we would insulate ourself completely from the dollar or from the import dependence. And hence, this is how we intend to keep our energy cost in the country. As regards export terminal, I think Mr. Michel has already said that we are in the process of commissioning, and we expect the first shift to go on the end of this month or the first week of the next month. And in regards to the cost, we don't have the final number but, obviously, the transportation by sea, quite in the nature, is cheaper than compared to by road. And secondly, since we do a large quantity at one time, there's economies of scale. All these are being fine-tuned, and maybe in the course of time, will we have the precise number that we wish.

Next question, please.

The next question is from [indiscernible].

So I've got 3 questions. So the first piece, which regards to the foreign exchange gain recorded in Q1 2020. Can you provide more insight as to what give us that [indiscernible] against the -- will be due to [ aging ] instruments or just simply how the transition be? And then a second question, please, what proportion of production costs in USD? And then you can also give an insight as to the comment of direct and indirect costs with some months, and what proportion are also being generated in USD? And the last would be in terms of skills we have. What sort of variation means do you have with the government that for and demand for cement from government for capital projects? And then you can also give [indiscernible] on the condition of [indiscernible] that is attribute to the governments and the private sectors.

Thank you for this question. So on the ForEx gain, we see the results of the conversion of receivables that we have in the Nigeria balance sheet related to the financing of our operations outside of Nigeria. So the reduction of the value of the naira against the dollar in Q1 has led to a weaker, the specific [indiscernible] in the standalone arms of Nigeria. My [indiscernible] that this is not translated in the consolidated financial statement, so the amount that we have recorded in the books of Nigeria standalone are in the range of NGN 42 billion. You don't find this profit in the consolidated accounts because they are eliminated during the consolidation process, and these are unrealized foreign exchange gains. As for the proportion of the production cost in [indiscernible], we usually use the example of Nigeria. We have an exposure of about 65% of our cash costs which are [indiscernible] and exposed, only 35% of these costs are actually paid out of dollar. So this is a range. Obviously, this is moving depending on the type of supply we get focused for some of these areas. Technically, that means that, as we mentioned earlier in the call, we operate on a constant basis in [ dollarize ] our P&L will be Nigeria coal growth. With 2 strong focuses, obviously, the energy is very significant in our cost mix, so we focus a lot of attention on the energy supply. And as Mr. Pathak just mentioned, we work very hard on alternative fuel options that we can deploy across our operations to reduce costs, but also to mitigate our dollar exposure. The other endeavor which been deployed over time is to reduce the recourse to foreign employees working in our countries of operation. So the trading efforts that we have deployed over the years and the localization of the knowledge and workforce has been also very significant shift in term of solar exposure in our P&L.

For the sales part, let's make it simple, that it's a little bit simplistic, I'm sorry. You can say bulk cement and bag cement. Bulk cement in Nigeria, overall, the market is, let's say, in the neighborhood of 10% of total sales to give you a rough idea. And of course, this is a segment more impacted or more related to government. In other case, we have also our internal customers buying bulk cement. In terms of specific agreements with the government for the months to come project, I'm not aware of any, but measures benefiting construction industry in Nigeria coming from government will most likely translate into an increase of bulk cement sales, for which we have all the terminals and the fleet related to.

Next question?

Your final question is from [indiscernible].

This is the [indiscernible] question. I [indiscernible] you said about capacity at the [indiscernible]. Also, what's the strategy on pricing loans forward in this negative [indiscernible] for Nigeria? And finally, at no -- what your [indiscernible] volumes, Nigeria, some of [indiscernible] starts to grow. That has [indiscernible].

As regards to the capacity today, after this Line 5 commissioning, capacity at Obajana would be 16.3 million tonnes. And as regards to -- I think you've heard what Michel said, he -- I would slightly elaborate that. Basically, the market is consumed to individual housebuilders and the corporate. And our total volume of bulk, which is related to corporate and corporate in turn has an agreement with the government are only 10% of our total sales. So going forward, we feel that the prices for the equilibrium that we have because it's mainly governed by the individual homebuilders. As of now is stable. Now in this uncertain environment, it would be difficult for us to look into distant wall and say how the events will turn out because the situation is full dynamic. But as I explained earlier, we don't see any significant swing either way.

That concludes the Q&A session. I will now hand the call over to the management team for any closing remarks.

Thank you for your questions. Definitely management priorities for the months to come is coronavirus and health concerns, number one, protect our people, and we, of course, protecting the others, both ways, not being infected and not contaminating others. This is #1 priority, impacting ways of working, working at home, working by shifts and overall protections you know very well. This is really a way of life now. In terms of business, we have to be very, very flexible because one day, government shut down the borders, lockdown measures are changing, curfew, how people can travel into the country are changing and then it can impact the market. So we need the flexibility and Dangote Cement is built for flexibility and fast reactions. In terms of really daily operational concerns is cash. It is liquidity, and you have seen the financial operation, assuring a very strong liquidity to Dangote Cement for the weeks, months and year to come. So -- but it's not enough. We also had some cost measures to be sure that you could do only what is needed, including CapEx review when -- where needed. And of course, export, which will be a very strong arm to our policy because it generates U.S. dollar, and it covers the fixed cost by selling more. So these are the main actions we want to develop in the future for sustainable growth as in the past. Thank you for your listening.

Thank you, everyone, for joining our call today. If you have follow-up questions, please send an e-mail to [email protected]. Thank you.

Thank you for dialing in for today's call. That concludes the Dangote Cement Q1 2020 results conference call. You may now hang up. Thank you.