lafarge africa plc unaudited financial statements 30 sep 2018...the accompanying notes and...

Lafarge Africa PlcUnaudited Financial Statements

30 Sep 2018

Lafarge Africa PlcContents

Directors' and Other Corporate Information 2

Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income 5

Consolidated and Separate Statements of Financial Position 6

Consolidated and Separate Statements of Changes in Equity 7

Consolidated and Separate Statements of Cash Flows 9

Notes to the Consolidated and Separate Financial Statements 10

2

Lafarge Africa PlcDirectors' and Other Corporate Information

Company registration numberRC 1858

DirectorsMr. Mobolaji Balogun ChairmanMs. Sylvie Rochier Vice ChairmanMr. Michel Puchercos Group Managing Director/CEOMr. Adebode Adefioye Non-Executive DirectorDr. Shamsuddeen Usman CON, OFR Non-Executive DirectorMrs. Elenda Giwa-Amu Non-Executive DirectorMrs. Adenike Ogunlesi Non-Executive DirectorMs. Geraldine Picaud (Appointed 7th April 2018) Non-Executive DirectorMr. Christof Hassig (Appointed 7th April 2018) Non-Executive DirectorMr. Grant Earnshaw (Appointed 7th April 2018) Non-Executive DirectorMr Rossen Papazov (Appointed 21st July 2018) Non-Executive DirectorMr. Jean-Carlos Angulo (resigned w.e.f. 20th July 2018) Non-Executive DirectorMr. Guillaume Roux (resigned w.e.f. 6th April 2018) Non-Executive DirectorDr. Adebayo Jimoh (resigned w.e.f. 6th April 2018) Non-Executive DirectorAlhaji Umaru Kwairanga (resigned w.e.f. 6th April 2018) Non-Executive Director

Company secretaryMrs. Adewunmi Alode

Independent auditorsKPMG Professional ServicesKPMG Tower,Bishop Aboyade Cole Street,Victoria Island,Lagos

Registered office Lafarge Africa PlcNo 27B, Gerrard Road,IkoyiLagos

RegistrarCardinal Stone (Registrars) Limited[formerly City Securities (Registrars) Limited]No 358, Herbert Macaulay Road,Yaba, Lagos

Principal bankers

Access Bank PlcCitibank Nigeria LimitedDiamond Bank PlcEcobank Nigeria LimitedFirst Bank of Nigeria LimitedGuaranty Trust Bank PlcStandard Chartered Bank PlcStanbic IBTC Bank LimitedUnited Bank for Africa PlcWema Bank PlcZenith Bank Plc

3

http://www.lafarge.com.ng/wps/portal/ng/Board-of-Directors/Biography?WCM_GLOBAL_CONTEXT=/wps/wcm/connectlib_ng/Site_ng/Bio/WAPCO_Board_of_Directors/List/Biography_1374062844651/BioEN










Lafarge Africa Plc

3months ended 30/09/2018








Notes N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

Revenue 6 72,008,596 68,828,650 234,300,122 223,668,593 42,307,207 19,311,853 142,756,931 71,402,332

Cost of sales 7 (54,875,664) (55,366,753) (178,205,218) (165,757,215) (27,879,268) (11,773,752) (90,215,957) (41,175,440)Gross profit 17,132,932 13,461,897 56,094,904 57,911,379 14,427,939 7,538,101 52,540,974 30,226,892

Selling and marketing expenses 8 (1,684,923) (806,160) (4,454,909) (2,983,957) (631,038) (143,950) (1,298,934) (921,780)Administrative expenses 9 (12,670,112) (13,150,289) (32,626,415) (29,166,609) (8,024,383) (3,082,189) (21,498,436) (7,967,629)Other income 10 21,380 31,453 128,018 2,930,647 (9,625) (81,310) 86,669 2,945,798 Other operating expenses 11 (4,211) 1,429 (9,753) (13,848) (1,232) - (5,252) - Operating profit 2,795,066 (461,670) 19,131,845 28,677,612 5,761,661 4,230,652 29,825,021 24,283,281

Finance income 11 413,100 375,161 1,446,622 928,432 336,556 8,095,327 1,221,957 19,037,113 Finance costs 11 (11,212,513) (16,980,339) (34,928,321) (28,512,485) (11,581,552) (7,551,100) (33,761,831) (21,657,727)Share of loss from associates accounted for using the equity method

(10,824) - (10,824) - - -

(Loss)/Profit before tax 13 (8,015,171) (17,066,848) (14,360,678) 1,093,559 (5,483,335) 4,774,879 (2,714,853) 21,662,667

Income tax (expense)/credit 12 1,544,434 (1,727,637) 3,987,654 (155,654) 1,473,233 (2,157,702) 795,632 (6,334,018)

(Loss)/Profit after tax (6,470,737) (18,794,486) (10,373,024) 937,905 (4,010,102) 2,617,177 (1,919,221) 15,328,649

Earnings per share attributable to the ordinary equity holders of the Company:

Basic earnings per share (Naira) 24 (75) (360) (120) 10 (46) 50 (22) 291

Group Company*

Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income for the year ended 30 Sepember 2018

4

Lafarge Africa Plc









Notes N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

Group Company*

Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income for the year ended 30 Sepember 2018

(Loss)/Profit after tax (6,470,737) (18,794,486) (10,373,024) 937,905 (4,010,102) 2,617,177 (1,919,221) 15,328,649 Other comprehensive income:Items that may be reclassified to profit or loss:Exchange differences on translation of foreign operations

27 137,150 (2,344,324) (507,861) 12,548,396 - -

137,150 (2,344,324) (507,861) 12,548,396 - - - -

Items that will not be subsequently reclassified into profit or loss:Remeasurements of defined benefit obligations

32.2 115 185 (4,451) 235,930 - - - Income tax relating to these items 12 (33) (41) 1,249 (58,384) -

82 144 (3,202) 177,546 - - - -

Other comprehensive income for the year, net of tax 137,232 (2,344,180) (511,063) 12,725,942 - - - - Total comprehensive (loss)/income for the year (6,333,504) (21,138,666) (10,884,086) 13,663,847 (4,010,102) 2,617,177 (1,919,221) 15,328,649 (Loss)/Profit attributable to :- Owners of Lafarge Africa Plc (6,470,737) (19,223,102) (10,373,024) 509,289 (4,010,102) 2,617,177 (1,919,221) 15,328,649 - Non-controlling interests 0.2 - 428,616 - 428,616 - - - -

(6,470,737) (18,794,486) (10,373,024) 937,905 (4,010,102) 2,617,177 (1,919,221) 15,328,649 Total comprehensive (loss)/income for the year is attributable to:- Owners of Lafarge Africa Plc (6,333,504) (21,330,224) (10,884,086) 13,235,231 (4,010,102) 2,617,177 (1,919,221) 15,328,649 - Non-controlling interests - 191,558 - 428,616 - - - -

(6,333,504) (21,138,666) (10,884,086) 13,663,847 (4,010,102) 2,617,177 (1,919,221) 15,328,649

The accompanying notes and significant accounting policies on pages 10 to 25 form an integral part of these financial statements.

*Due to the merger of the Company with two subsidiaries and the liquidation of two subsidiaries into the Company in December 2017, the 2018 Company numbers are those of the merged and liquidated entities while the 2017 numbers as of Sept. 2017 are those of the Company prior to the merger and liquidation.

5

Lafarge Africa Plc

30/09/2018 31/12/2017 30/09/2018 31/12/2017 Notes N'000 N'000 N'000 N'000

ASSETSNon-current assetsProperty, plant and equipment 14 386,518,628 393,651,934 286,227,305 292,872,779 Intangible assets 15 6,064,001 2,634,326 2,759,109 - Investment in subsidiaries 16 - - 182,088,406 182,088,406 Other financial assets 17 2,741,918 1,582,622 2,741,918 1,556,738 Other assets 19 18,612,631 20,803,113 16,113,033 14,984,747 Deferred tax assets 12.5 12,346,858 7,951,595 17,420,793 16,333,384 Total non-current assets 426,284,036 426,623,590 507,350,564 507,836,054

Current assetsInventories 20 58,904,337 58,266,466 39,126,682 39,057,831 Trade and other receivables 21 29,580,209 25,110,116 16,617,858 15,930,970 Current tax asset 12.3 887,206 917,797 - - Other assets 19 11,959,368 15,162,092 10,354,796 10,679,505 Other financial assets 17 749,158 592,538 226,496 326,635 Derivative assets 18 10,615 640,091 10,615 640,091 Cash and cash equivalents 22 17,520,017 50,414,757 15,709,381 41,698,854 Total current assets 119,610,910 151,103,857 82,045,828 108,333,886

Total assets 545,894,946 577,727,447 589,396,392 616,169,940

LIABILITIES Non-current liabilitiesLoans and borrowings 29 177,406,550 68,715,378 146,718,586 64,900,757 Deferred tax liabilities 12.5 - 1,463,106 - - Provisions 30 3,772,118 3,472,388 967,806 909,320 Deferred revenue 31 1,435,418 1,518,467 1,435,418 1,518,467 Employee benefit obligations 5,204,333 4,916,931 1,851,293 1,616,733 Total non-current liabilities 187,818,419 80,086,270 150,973,103 68,945,277

Current liabilitiesTrade and other payables 32 113,511,107 113,000,180 83,520,912 69,930,054 Loans and borrowings 29 77,117,274 187,831,582 89,426,359 190,724,579 Current tax liabilities 12.4 3,330,624 3,251,525 1,254,036 1,544,949 Provisions 30 816,471 1,166,217 519,526 895,268 Derivative liabilities 18 647,570 4,212,406 647,570 4,212,406 Deferred revenue 31 110,732 110,732 110,732 110,732 Bank overdrafts 22.2 29,981,610 31,081,780 13,636,010 15,037,780 Total current liabilities 225,515,388 340,654,422 189,115,145 282,455,768

Total liabilities 413,333,807 420,740,692 340,088,248 351,401,045

EQUITYShare capital 23.1 4,336,714 2,787,888 4,336,714 2,787,888 Share premium 23.2 350,608,766 222,272,108 350,608,766 222,272,108 Retained earnings 136,871,187 160,257,556 86,041,624 100,970,988 Deposit for shares 25 - 130,416,872 - 130,416,872 Foreign currency translation reserve 27 9,427,782 9,935,643 39,103 39,103 Other reserves arising on business combination and re-organisations 28 (368,683,312) (368,683,312) (191,718,064) (191,718,064) Total equity 132,561,138 156,986,755 249,308,143 264,768,895

Total equity and liabilities 545,894,946 577,727,447 589,396,391 616,169,940

Mobolaji Balogun Michel Puchercos Bruno BayetChairman Group Managing Director Group Chief Financial OfficerFRC/2013/CISN/00000004945 FRC/2017/IODN/00000015919 FRC/2014/MULTI/00000009554

These financial statements were approved and authorised for issue by the board of directors on 16 October 2018 and were signed on its behalf by:

Consolidated and Separate Statements of Financial Position as at 30 September 2018

Group Company*


6

Lafarge Africa PlcConsolidated and Separate Statements of Changes in Equity for the year ended 30 September 2018

Group

Sharecapital

Sharepremium

Retainedearnings Deposit for shares

Foreign currencytranslation

reserve

Other reserves arising on business

combination and re-organisations Total

Non-controlling interests Total equity

Notes N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

Balance at 1 January 2017 2,740,367 217,528,456 102,842,886 - (8,660,486) (256,899,951) 57,551,272 191,401,276 248,952,548 (Loss)/Profit for the period 1st Jan. - 30 Sep. 2017

- - 509,289 - - - 509,289

428,616 937,905

Exchange differences on translating foreign operations

12,548,396 12,548,396 12,548,396

Remeasurement gain of defined benefit obligation, net of tax

177,546 177,546 177,546

Dividends paid to parent (4,177,358) (4,177,358) (41,863) (4,219,221) Dividends paid to non controlling interest (1,577,413) (1,577,413) (1,577,413) Net movement of Quasi-Equity loan (27,380,679) (27,380,679) (27,380,679) Issue of shares 4,890 523,222 528,112 528,112 2.57% of Ashaka equity taken over 1,376,855 (1,180,789) 196,066 (1,405,632) (1,209,566) ECH Equity taken over - - Quasi Equity Repaid - (51,416,749) (51,416,749)

Balance at 30 Sept, 2017 2,745,257 218,051,678 71,771,126 - 3,887,910 (258,080,740) 38,375,231 138,965,648 177,340,879

Profit for the period 1 Oct. - 31 December 2017

(35,518,696)(35,518,696)

(20,618)(35,539,314)

Remeasurement gain of defined benefit obligation, net of tax

45,357 45,357 45,357

Exchange differences on translating foreign operations

6,047,733 6,047,733 6,047,733

Deposit for shares 130,416,872 130,416,872 130,416,872 Movement in reserves arising from re-organisation

123,959,769 40,729,323 164,689,092

164,689,092

Net movement of Quasi-Equity loan (199,453,879) (199,453,879) (199,453,879) Quasi-equity loan taken over by Parent - (87,944,888) (87,944,888) Acquisition of NCI in Ashaka 42,631 4,220,430 - - 48,121,984 52,385,045 (51,000,142) 1,384,903 Total transaction with owners 42,631 4,220,430 88,486,430 130,416,872 6,047,733 (110,602,572) 118,611,524 (138,965,648) (20,354,124)

Balance at 31 December 2017 2,787,888 222,272,108 160,257,556 130,416,872 9,935,643 (368,683,312) 156,986,755 - 156,986,755

At 1 January 2018 2,787,888 222,272,108 160,257,556 130,416,872 9,935,643 (368,683,312) 156,986,755 - 156,986,755 (Loss)/profit for the year - - (10,373,024) - - - (10,373,024) - (10,373,024)Exchange differences on translating foreign operations - - (3,202) - (507,861) - (511,063) - (511,063)Total comprehensive income for the period

- - (10,376,226) - (507,861) - (10,884,086) - (10,884,086)

Transaction with owners:

Issue of shares23

1,548,826 130,101,427 - - - 131,650,253 - 131,650,253

Deposit for shares now allotted 25 - - - (130,416,872) - - (130,416,872) - (130,416,872)Dividends paid to parent 32.2 - - (9,928,888) - - - (9,928,888) - (9,928,888)Dividends paid to non controlling interest 32.2 (3,081,255) (3,081,255) (3,081,255)Right issue costs - (1,764,769) - - - - (1,764,769) (1,764,769)Total transaction with owners 1,548,826 128,336,658 (13,010,143) (130,416,872) - - (13,541,530) - (13,541,530)Balance at 30 Sept. 2018 4,336,714 350,608,766 136,871,187 - 9,427,782 (368,683,312) 132,561,138 - 132,561,138

Attributable to equity holders of the parent


7

Lafarge Africa PlcConsolidated and Separate Statements of Changes in Equity for the year ended 30 September 2018

Company*

Share capital

Share premium Retained earnings Deposit for shares

Foreign currency

translationreserve

Other reserves arising on business combination and

re-organisations Total equity Notes N'000 N'000 N'000 N'000 N'000 N'000 N'000

Balance at 1 January 2017 2,740,367 217,528,456 119,825,320 - - - 340,094,143 Profit for 1 January - 30 June 2017 - - 15,328,649 - - - 15,328,649 Other comprehensive income (Net of tax) - - - - - - Dividends paid to parent (4,177,358) (4,177,358)Dividends paid to non controlling interest (1,577,413) (1,577,413)Issue of shares 4,890 523,222 528,112 Balance as at 30 Sept. 2017 2,745,257 218,051,678 129,399,198 - - - 350,196,133

Loss for the period 1 Oct. - 31 December 2017 (28,552,275) (28,552,275)

Other comprehensive income for the year, net of tax 124,065 39,103 163,168

Transaction with owners:

Issue of shares 27 42,631 4,220,430 - - - 4,263,061 Deposit for shares 23.2 - - - 130,416,872 - - 130,416,872 Movement in reserves arising from re-organisation 7,735,815 7,735,815 Net movement of Quasi-Equity loan 17.2 - - - - - (199,453,879) (199,453,879)Total transaction with owners 42,631 4,220,430 (28,428,210) 130,416,872 39,103 (191,718,064) (85,427,238)

Balance at 31 December 2017 2,787,888 222,272,108 100,970,988 130,416,872 39,103 (191,718,064) 264,768,895

At 1 January 2018 2,787,888 222,272,108 100,970,988 130,416,872 39,103 (191,718,064) 264,768,895 Loss for the year - - (1,919,221) - - - (1,919,221)Other comprehensive income (Net of tax) - - - - - - - Total comprehensive income for the period - - (1,919,221) - - - (1,919,221)

Transaction with owners:Issue of shares 23 1,548,826 130,101,427 - - - - 131,650,253 Deposit for shares now alloted 25 - - - (130,416,872) - - (130,416,872)

Right issue costs 15.2 - (1,764,769) - - - - (1,764,769)

Dividends paid to parent 32.2 (9,928,888) (9,928,888)Dividends paid to non controlling interest 32.2 - - (3,081,255) - - - (3,081,255)Total transaction with owners 32.2 1,548,826 128,336,658 (13,010,143) (130,416,872) - - (13,541,531)

Balance at 30 Sept. 2018 4,336,714 350,608,766 86,041,624 - 39,103 (191,718,064) 249,308,143

Attributable to equity holders of the parent

The accompanying notes and significant accounting policies form an integral part of these financial statements.

8

Lafarge Africa Plc

30/09/2018 30 Sep. 2017 31 Dec. 2017 30/09/2018 30 Sep. 2017 31 Dec. 2017Notes N'000 N'000 N'000 N'000

Cash flows from operating activities:(Loss)/Profit for the year (10,373,024) 937,905 (34,601,409) (1,919,221) 15,328,649 (13,223,626)Adjustments to reconcile (Loss)/Profit for the year to net cash flows:Depreciation, Amortisation & Impairment losses on PPE 14 16,829,966 16,054,236 22,181,159 12,514,879 4,123,907 16,304,267 Impairment losses on property, plant and equipment - - 19,178,254 - - 12,394,270 Amortization of intangible asset 15 438,279 - 166,023 - - Impairment of intangible asset 15 - - 226,670 - - Other non cash movements (204,353) (2,320,383) (1,262,945) (151,512) (2,294,412) (1,725,648)Operating Longterm receivablesNet unrealized foreign exchange loss 3,922,916 4,410,348 1,677,899 3,562,842 4,861,674 1,416,442 Finance costs 11 27,542,398 18,321,168 29,740,993 25,804,348 16,741,418 28,956,601 Finance income 11, 10 (1,446,622) (1,012,556) (1,438,980) (1,221,957) (19,331,168) (1,107,476)Dividend income (2,003) (1,767) - (294,055)Share of loss from joint venture 10,824 140,263 - 112,236 Income tax expense/(credit) 12.1 (3,987,654) 155,654 281,460 (795,632) 6,334,018 5,837,763 Minimum tax - 287,672 - 287,672 Provisions and net movement on employee benefits 29 (50,016) 1,036,947 (409,279) (317,256) 445,986 (408,231)Change in net working capital (998,076) (38,079,841) (42,516,757) 9,214,648 (28,225,188) (45,318,450)Cash flow (used in)/generated from operations 31,682,635 (496,521) (6,350,744) 46,691,139 (2,015,116) 3,231,765 Income taxes paid (1,711,844) (1,039,996) (772,057) (582,690) (44,534) (307,000)Net cash flow (used in)/generated from operating activities

29,970,791 (1,536,517) (7,122,801) 46,108,449 (2,059,650) 2,924,765

Cash flows from investing activitiesAcquisition of property, plant and equipment 14,15 (11,838,761) (7,396,122) (15,278,494) (5,896,619) (1,543,215) (10,360,055)Acquisition of intangible assets (1,246,218) (228,192) - - Interest received 10 - 1,380,523 1,049,045 Acquisition of subsidiary, net of cash acquired - (673,406) - (673,406)Finance income 11 852,242 1,614,220 - 657,529 874,627 - Dividend received from unlisted investments 10 2,003 1,767 - - Dividend received from subsidiaries - - - 294,055 Net movement in other financial assets 17 (1,159,296) (8,564,427) (1,158,701) (1,185,180) (1,146,194)Proceeds from sale of property, plant and equipment - 3,157,587 3,129,895 - 3,065,320 2,983,969 Net cash flow (used in)/generated from investing activities

(13,390,030) (11,188,742) (12,826,608) (6,424,270) 2,396,732 (7,852,586)

Cash flows from financing activitiesInterest paid 11, 28 (26,046,722) (12,238,253) (23,698,165) (21,904,127) (5,046,758) (18,739,561)Dividend paid to equity holders of the company 32.3 (8,764,009) (14,703,412) (14,703,412) (8,764,009) (14,703,412) (14,703,412)Dividend paid to Non Controlling Interest 32.3 (3,081,255) (1,619,276) (1,619,276) (3,081,255) (1,577,413) (1,577,413)Net proceed from right issue 37,005,120 - - 37,005,120 - - Transaction cost on proposed rights issue 26 (487,926) - (574,743) (487,926) - (574,743)Cash received from futures contract 495,440 - 7,661,124 495,440 - 7,661,124 Proceeds from loans and borrowings 29 100,302,924 127,714,866 195,099,306 81,008,163 120,266,766 187,310,535 Repayment of loans and borrowings 29 (128,175,435) (93,900,927) (138,981,397) (129,419,053) (96,942,643) (138,646,769)Net cash inflow generated from/(used in) financing activities

(28,751,863) 5,252,998 23,183,437 (45,147,647) 1,996,540 20,729,761

Net increase/(decrease) in cash and cash equivalents

(12,171,102) (7,472,261) 3,234,028 (5,463,468) 2,333,622 15,801,940

Cash and cash equivalents at the beginning of the year (1,148,616) (3,730,386) (3,730,386) 6,179,481 (7,783,026) (7,783,026)

Cash and cash equivalents arising from merger - - - (1,882,466)Effects of exchange rate changes on cash and cash equivalents

(208,252) - (652,258) 290,981 43,033

Cash and cash equivalents at the end of the year 22.2 (13,527,970) (11,202,647) (1,148,616) 1,006,994 (5,449,404) 6,179,481

Group Company*

Consolidated and Separate Statement of Cash Flows for the year ended 30 September 2018


*Due to the merger of the Company with two subsidiaries and the liquidation of two subsidiaries into the Company in December 2017, the 2018 Company numbers are those of the merged and liquidated entities while the 2017 numbers as of Sept. 2017 are those of the Company prior to the merger and liquidation.

9

Lafarge Africa Plc

1 Business description

30th Sept. 2018 31st Dec. 2017 30th Sept. 2017

Ashaka Cement PLC Lafarge Ready Mix Nigeria Limited Ashaka Cement PLC

Lafarge Ready Mix Nigeria Limited Lafarge South Africa Holdings

(PTY) Limited

Lafarge Ready Mix Nigeria Limited

Lafarge South Africa Holdings (PTY) Limited Ashaka Cement PLC Atlas Cement Company Limited.

Egyptian Cement Holdings

Lafarge South Africa Holdings (PTY) Limited

2

2 Basis of preparation

i) Compliance with IFRS

ii) Basis of measurement

- defined benefit pension plans - plan assets measured at fair value - inventory - lower of cost and net realisable value

The Group financial statements of Lafarge Africa Plc for the period ended 30 Sept. 2018 have been prepared in accordance with International FinancialReporting Standards ("IFRS") and interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS andthe requirements of the Companies and Allied Matters Act CAP C.20 Laws of the Federation of Nigeria, 2004 and the Financial Reporting Council of Nigeria Act,2011.

The financial statements comprise the statement of profit or loss and other comprehensive income, the statement of financial position, the statement of changesin equity, the statement of cash flows and the notes to the financial statements.

- non-derivative financial instruments – initially at fair value and subsequently at amortized cost using effective interest rate

Summary of significant accounting policies

These interim condensed consolidated and separate financial statements of Lafarge Africa Plc Group have been prepared in accordance with IAS 34 InterimFinancial Reporting. They do not include all disclosures that would otherwise required in a complete set of financial statements and should be read in conjuctionwith 2017 annual report. The financial statements which were prepared on a going concern basis, were authorized for issue by the Company's board of directorson 16 October, 2018.

The financial statements have been prepared in accordance with the going concern assumption under the historical cost concept except for the following:

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

- derivative financial instruments – measured at fair value

Lafarge Africa Plc Group has consistently applied the same accounting policies and methods of computation in its interim condensed consolidated and separatefinancial statements as in its 2017 annual financial statements. None of the new standards, interpretations and ammendments , effective for the first time from1st January 2018, have had a material effect on the financial statements.

Lafarge Africa PLC (Lafarge Africa) was incorporated in Nigeria on 26 February, 1959 and commenced business on 10 January 1961. The Company formerlyknown as Lafarge Cement WAPCO Nigeria Plc changed its name after a special resolution was passed by the shareholders at an Annual General Meeting held onWednesday 9 July 2014. The change of name became effective with the acquisition of shares in Lafarge South Africa Holdings (Proprietary) Limited (LSAH),United Cement Company of Nigeria Limited (UNICEM), AshakaCem PLC (AshakaCem) and Atlas Cement Company Limited (Atlas). The Company’s corporatehead office is situated at 27B Gerrard Road, Ikoyi, Lagos which is same as the registered office.

These consolidated and separate financial statements cover the financial period from 1 January 2018 to 30 Sept. 2018. The comparatives for 2017 have not beenadjusted to suit the new Group and Company structure.

Lafarge Africa is in the business of manufacturing and marketing of cement and other cementitious products such as Ready-Mix Concrete, Aggregates, Fly-Ashetc. 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 Lafarge Holcim. The term ‘Group’ as used in this report refers to Lafarge Africa, itssubsidiaries and investment in joint operations.

The Group's subsidiaries are as stated below;

Notes to the Consolidated and Separate Financial Statements for the year ended 30September 2018

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Lafarge Africa Plc

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6 Revenue

Sale of goods 72,008,596 68,828,650 234,300,122 223,668,593 42,307,207 19,311,853 142,756,931 71,402,332

The following is an analysis of revenue by product:

Cement 56,286,314 52,756,611 188,502,585 177,070,598 41,510,943 18,703,325 140,346,596 69,470,512 Aggregate and concrete 14,327,704 14,613,098 42,071,893 42,632,357 - - - - Admixtures and other products (Note 6.1) 1,394,577 1,458,941 3,725,645 3,965,639 - - - - Revenue-Related party - - - - 796,264 608,528 2,410,335 1,931,820

72,008,596 68,828,650 234,300,122 223,668,593 42,307,207 19,311,853 142,756,931 71,402,332

6.1

- Company

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7 Cost of sales by nature

Variable costs (Note 7.1) 36,490,736 31,149,926 112,710,018 96,391,790 17,810,478 6,660,424 55,172,032 25,214,236 Production costs (Note 7.2) 5,122,914 8,665,450 17,373,192 24,139,920 2,529,591 1,164,886 7,773,733 3,543,461 Maintenance costs 3,364,311 5,450,257 13,217,637 14,467,545 1,408,461 1,143,992 5,746,725 3,739,253 Distribution costs 377,415 1,122,565 6,301,409 4,102,827 -328,678 364,379 2,900,738 1,006,089 Depreciation 5,154,685 5,277,613 16,154,718 15,915,637 4,205,403 1,370,042 12,379,493 4,059,447 Amortisation and impairment of intangible assets

378,722 49,598 438,279 119,556 - - -

General costs 3,986,880 3,651,344 12,009,965 10,619,940 2,254,013 1,070,029 6,243,236 3,612,954

54,875,664 55,366,753 178,205,218 165,757,215 11,773,752 90,215,957 41,175,440

7.1 Variable costsDistribution variable cost 13,219,175 15,321,782 42,243,529 41,715,569 6,623,452 2,367,655 21,652,359 9,548,730 Gas 6,000,353 5,028,479 19,139,915 16,995,933 3,316,250 1,548,162 11,564,078 6,079,532 Power 4,843,819 4,494,734 14,461,151 15,241,696 2,661,864 1,466,316 8,380,340 6,772,147 Raw materials and consumables 12,427,389 6,304,930 36,865,423 22,438,592 5,208,912 1,278,291 13,575,255 2,813,827

36,490,736 31,149,926 112,710,018 96,391,790 17,810,478 6,660,424 55,172,032 25,214,236

7.2 Production costs

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8 Selling and marketing expenses

Advertising expenses 375,186 (73,990) 602,400 287,038 375,186 67,012 602,400 287,038 Campaign and innovation expenses (164,292) 90,458 197,289 216,111 115,419 90,458 197,289 216,111 Other selling and marketing expenses 1,474,029 789,692 3,655,220 2,480,808 140,433 (13,520) 499,245 418,631

1,684,923 806,160 4,454,909 2,983,957 631,038 143,950 1,298,934 921,780

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9 Administrative expenses by nature

Administrative expenses* 8,943,405 10,815,059 23,965,981 21,938,045 6,045,416 2,314,187 16,207,451 5,586,796 Depreciation 269,375 44,015 675,248 138,599 49,709 19,926 135,386 64,460 Technical service fees 3,457,332 2,291,215 7,985,186 7,089,965 1,929,258 748,076 5,155,599 2,316,373

12,670,112 13,150,289 32,626,415 29,166,609 8,024,383 3,082,189 21,498,436 7,967,629

Notes to the Consolidated and Separate Financial Statements for the year ended 30 September 2018

Company

Admixtures and other products represent revenue earned from the sale of fly ash, ready-mix pump sales and other mineral components from South African operations.

Included in the production costs are personnel expenses, by-products costs, inventory write-offs and electrical energy expenses.

Group

Company

Group Company

Group

Group

*During 2017, Lafarge Africa Plc modified the classification of bank charges to be consistent with the Group's policy. Comparative amounts in the statement of profit or loss werereclassified for consistency. As a result, N270 million for the Group and N116 million for the Company were reclassified from administrative expenses to finance costs.

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9.1 Technical service fees

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10 Other income**Gain on disposal of property, plant and equipment (Note 10.1) - 44,552 - 2,416,396 - - - 2,366,990

Government grants - - - - - - - - Scrapped and other miscellaneous income (Note 10.2) (8,644) (46,933) 97,994 430,128 (9,625) (86,509) 86,669 284,753

Write back of impairment of trade receivables 28,021

- 28,021 - - - - -

19,377 (2,381) 126,015 2,846,524 (9,625) (86,509) 86,669 2,651,743

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Investment incomeDividends received from subsidiaries (Note 10.3) - 59,925 - 82,458 - 5,199 - 294,055 Dividend received from unlisted investments (Note 10.4) 2,003 (26,091) 2,003 1,665 - - - -

2,003 33,834 2,003 84,124 - 5,199 - 294,055

Total net Other Income: 21,380 31,453 128,018 2,930,647 (9,625) (81,310) 86,669 2,945,798

10.1 Gain on disposal of property, plant and equipment

### Scrapped and other miscellaneous income

10.3 Dividend received from subsidiariesPrior year figure represents dividend received from AshakaCem Plc (2018:100% holding, 2016:84.97% holding).

10.4 Dividend received from unlisted investmentsThis represents dividend received by Lafarge South Africa holdings (PTY) Limited on its unlisted investments.

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11 Other operating expenses**

Impairment of other receivables - (1,441) - (1,441) - - - - Impairment of trade receivables (1,522) 4,020 - - - 4,020 - Other expenses 5,733 12 5,733 15,289 1,232 - 1,232 -

4,211 (1,429) 9,753 13,848 1,232 - 5,252 -

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11 Finance income and costsa) Finance income:

Interest income on current accounts 60,250 210,217 656,644 406,867 191,970 7,047 656,644 49,013 Other finance income 73,119 35,127 223,803 109,685 73,119 89,434 223,803 109,685 Interest income on current accounts 133,369 245,344 880,447 516,552 265,089 96,481 880,447 158,698 Interest income from Short term fixed deposits

195,221 384 195,598 1,198 508 - 885 -

Interest on loan receivable 84,510 129,433 370,577 410,682 70,959 7,998,846 340,625 18,878,415 413,100 375,161 1,446,622 928,432 336,556 8,095,327 1,221,957 19,037,113

** Previously included in other income/operating expenses is net foreign exchange loss which are now reported as part of finance costs . As a result, 9.9bn and N4.8billion hasbeen reclassified for the Group and Company respectively.

Company

Company

In prior year, there was a gain on disposal of the Company’s Property, plant and equipment (Elephant Cement House Building) located in Alausa, Ikeja, to the Lagos State Government after occupying the building for over two decades. The total proceed from the disposal amounted to N3.1 billion.

This comprises of the total income earned on miscellaneous activities not related to cementitious products including sale of scrap and product shortage recoveries (haulers).

Lafarge Africa Plc has a technical service agreement with Lafarge S.A., France, a related party which relates to Industrial Franchise. This agreement has been registered with the National Office for Technology Acquisition and Promotion (NOTAP) in Nigeria and is computed as 3.5% of net sales.

Company

Company Group

Group

Group

Group

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Lafarge Africa Plc


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b) Finance costs:Interest on bank overdraft (601,255) (1,812,598) (2,090,257) (2,710,219) (225,324) (1,408,074) (864,782) (1,408,074)Interest on borrowings (Note 29 b) (7,460,192) (5,715,951) (23,502,117) (15,239,412) (7,286,159) (5,572,854) (23,352,841) (15,227,709)Unwinding of discount on provisions (Note 30.1) 1,488 (47,408) (43,293) (69,016) - (26,149) - (26,149)

Interest cost on employee's long service award (Note 32.1) (79,329) (124,767) (172,938) (124,767) (59,102) (79,486) (129,040) (79,486)

Interest cost on defined benefit (Note 32.2) (117,898) (59,085) (307,671) (177,754) (47,858) - (86,114) - Bank charges (463,201) 111,621 (1,426,122) (269,812) (450,876) 156,562 (1,371,571) (115,606)Finance cost per statement of cash flows

(8,720,387) (7,648,188) (27,542,398) (18,590,980) (8,069,319) (6,930,001) (25,804,348) (16,857,024)

Foreign exchange loss (net) (2,492,126) (9,332,151) (7,385,923) (9,921,505) (3,512,233) (621,099) (7,957,483) (4,800,703)Finance costs (11,212,513) (16,980,339) (34,928,321) (28,512,485) (11,581,552) (7,551,100) (33,761,831) (21,657,727)

Net finance (costs)/ income recognised in the profit or loss

(10,799,413) (16,605,178) (33,481,699) (27,584,053) (11,244,996) 544,227 (32,539,874) (2,620,614)

12 Income tax (credit)/ expense

12.1 Income tax (credit)/ expense recognised in profit or loss

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30/09/2017 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

Current income taxCompany income tax 407,230 824,028 1,582,157 2,322,466 - 184,146 - 596,644 Education tax 57,117 20,025 410,128 84,850 24,263 - 291,777 -

Capital gains tax - - - 116,326 -

- - 116,326 Total current tax expense 464,347 844,053 1,992,285 2,523,642 24,263 184,146 291,777 712,970

Deferred income taxDeferred income tax (credit)/charge to profit or loss (Note 12.5)

(2,008,781) 883,585 (5,979,939) (2,367,988) -1,497,496 1,973,556 (1,087,409) 5,621,048

Income tax (credit)/charge (1,544,434) 1,727,637 (3,987,654) 155,654 (1,473,233) 2,157,702 (795,632) 6,334,018

Income tax (credit)/ expense (1,544,434) 1,727,637 (3,987,654) 155,654 (1,473,233) 2,157,702 (795,632) 6,334,018

12.2 Reconciliation of effective tax to statutory tax

30 Sep 2018

30 Sept 2017

30 Sep 2018

30 Sep2017

N'000 N'000 N'000 N'000

(14,360,678) 1,093,559 (2,714,853) 21,662,667

(4,308,203) 328,068 (814,456) 5,066,336

Impact of disallowable expenses for tax purpose 598,271 (119,743) 377,386 64,562 Impact of non taxable income (718,606) (1,037,041) (650,339) (1,444,198)

Changes in estimate relating to prior year (252,105) - - -

Impact of education tax rule 410,127 636,960 291,777 373,289 Impact of unrecognised tax losses - - - - Effect of tax exemption - Netherlands - (192,238) - - Effect of pioneer status - - - - Impact of minimum tax - 236,882 - -

- - - -

Impact of capital gains tax - 116,326 - 116,326 Share of profit of equity accounted investees - - - - Impact of changes in pioneer status - - - - Effect of lower tax rates in South Africa 282,863 186,439 - -

(3,987,654) 155,654 (795,632) 4,176,316

Effective tax rate 28% 14% 29% 19%

(Loss) / profit before tax from continuing operations before income

Company

Company

Company

Group

Group

Recognition of previously unrecognised deductible temporary differences

This note provides an analysis of the Group and Company's income tax expense. It shows what amounts are recognised directly in equity and how the tax expense is affected by non-assessable and non-deductible items. It also explains significant estimates made if any, in relation to the Group and Company's tax position.

The tax on the Company’s loss before income tax differs from the theoretical amount that would arise using the statutory income tax rate as follows:

Group

Income tax expense/ (credit) recognised in profit or loss

Tax calculated at statutory tax rate of 32%, 28% for LSAH (2016: 30%, 28% for LSAH)

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Lafarge Africa Plc


12.3 Income tax recognised in other comprehensive income

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Deferred tax arising on:Remeasurement of defined benefit obligation 1,249 50,948 - -

12.3 Current tax asset Group

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At 1 January 917,797 487,279 - - Company income tax (76,548) (209,878) - - Prior year over-provision - (16,228) - - Charge for the period (76,548) (226,106) - -

Group 30 Sep

2018 31 Dec

2017 30 Sep

2018 31 Dec

2017 N'000 N'000 N'000 N'000

Effect of Pioneer statusPayments during the year 87,141 203,127 - - Exchange rate difference (41,184) 453,497 - - Closing Bal. 887,206 917,797 - -

12.4 Current income tax liabilities Group

30 Sep 2018

31 Dec 2017

30 Sep 2018

31 Dec 2017

N'000 N'000 N'000 N'000Balance at 1 January 3,251,525 1,311,906 1,544,949 363,625

Transfer through internal merger - - - 271,163 Charge for the year:Company income tax 1,467,956 1,177,335 - - Education tax 410,128 935,459 291,777 821,406 Capital gains tax - 116,326 - 116,326 Minimum tax - 287,672 - 287,672 Prior year over-provision - - - -

1,878,084 2,516,792 291,777 1,496,567 Payment during the year (1,798,985) (568,930) (582,690) (307,000)Witholding tax utilised - (8,243) - (8,243)

Closing Bal. 3,330,624 3,251,525 1,254,036 1,544,949

12.5 Deferred income tax

The analysis of deferred tax assets/(liabilities) is as follows: Group

30 Sep 2018

31 Dec 2017

30 Sep 2018

31 Dec 2017

N'000 N'000 N'000 N'000

Deferred tax assets 12,346,858 7,951,595 17,420,793 16,333,384 Deferred tax liabilities - (1,463,106) - -

Deferred tax assets/(liabilities) net 12,346,858 6,488,489 17,420,793 16,333,384

GroupDeferred tax liabilities/(assets): At 1 January

2018 (Credit)/

charge to P/L (Credit)/

charge to OCI Exchange

rate differences

30 Sept. 2018

N'000 N'000 N'000 N'000 N'000Property, plant and equipment 24,725,234 (4,975,123) - (480,444) 19,269,667 Provisions and other liabilities (6,407,725) (621,174) - 130,551 (6,898,348) Unutilised tax losses (19,038,136) 663,424 - 474,865 (17,899,847) Employment benefit obligation (131,065) 194,653 - (2,854) 60,734 Prepayments 83776 (72,118) - (548) 11,110 Unrealised exchange differences (5,720,573) (1,169,602) - - (6,890,175)

Total deferred tax liabilities/(assets) (6,488,489) (5,979,939) 0 121,570 (12,346,858)

Company

Company

Company

Company

Group Company

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Lafarge Africa Plc


Deferred tax liabilities/(assets): At 1 January 2017

(Credit)/ charge to P/L

(Credit)/ charge to OCI

Exchange rate

differences

At 31 December

2017 N'000 N'000 N'000 N'000 N'000

Property, plant and equipment 19,524,049 (455,042) - 5,656,227 24,725,234 Provisions and other liabilities (5,445,108) 389,449 - (1,352,066) (6,407,725)Unutilised tax losses (2,567,337) (15,333,984) - (1,136,815) (19,038,136)Employment benefit obligation (211,050) (41,987) 96,854 25,118 (131,065)Prepayments 38,737 8,102 - 36,937 83,776 Operating lease liability - - -

Unrealised exchange differences (18,980,294) 13,259,721 - - (5,720,573)

OthersTotal deferred tax liabilities/(assets) (7,641,003) (2,173,741) 96,854 3,229,401 (6,488,489)

Company

Deferred tax assets/(liabilities):

At 1 January 2018

Arising from reorganisatio

n


(Credit)/ charge to

OCI

30 Sept. 2018

N'000 N'000 N'000 N'000 N'000Property, plant and equipment 3,756,535 - (4,398,646) - (642,111) Unutilised tax losses (11,684,826) - 4,376,649 - (7,308,177) Provisions and other liabilities (2,699,231) - (119,956) - (2,819,187) Unrealised exchange differences (5,511,209) - (1,140,108) - (6,651,317) Employment benefit obligation (194,653) - 194,653 - - Total deferred tax liabilities/(assets) (16,333,384) - (1,087,409) - (17,420,793)

Deferred tax liabilities/ (assets): At 1 January 2017

Arising from reorganisatio

n


(Credit)/ charge to

OCI

At 31 December

2017 N'000 N'000 N'000 N'000 N'000Property, plant and equipment 19,400,045 (16,958,882) 1,315,372 - 3,756,535 Unutilised tax losses (69,671) (1,504,625) (10,110,530) - (11,684,826) Provisions and other liabilities (1,736,816) (1,230,691) 268,276 - (2,699,231) Unrealised exchange differences 581,825 (19,561,934) 13,468,900 - (5,511,209) Employment benefit obligation (144,050) (67,000) (41,987) 58,384 (194,653) Others - - - Total deferred tax liabilities/(assets) 18,031,333 (39,323,132) 4,900,031 58,384 (16,333,384)

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and unutilized tax losses can be utilised.

15

Lafarge Africa Plc

14 Property, plant and equipment

Group Leasehold Land Buildings Production Plant Capitalised Spares

Furniture Motor Vehicles Computer Equipment

Ancillary Plant & Machinery

Construction Work in Progress

Total

N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

Cost:As at 1 January 2017 7,957,750 108,053,194 339,148,428 2,365,440 6,528,639 2,744,347 1,450,221 556,533 42,121,744 510,926,296 Capital expenditure - 550,721 - - - - - 19,800,622 20,351,343 Construction expenditure capitalised (Note 14.1)

- 1,860,054 18,977,437 2,304,142 3,774,003 209,104 153,987 457,414 (27,736,141) -

Reclassification - 178,541 - - 22,901 - 1,649 357,856 (560,947) - Disposals - (1,802,191) (19,554) - (157,846) (5,894) (20,595) - - (2,006,080)Write-offs - (517,655) (207,183) - (7,747) (517,917) (1,267) - - (1,251,769)Exchange difference - 4,456,516 40,612,793 - 835,841 - - - 505,012 46,410,162

As at 31 December 2017 7,957,750 112,228,459 399,062,642 4,669,582 10,995,791 2,429,640 1,583,995 1,371,803 34,130,290 574,429,952

Cost:As at 1 January 2018 7,957,750 112,228,459 399,062,642 4,669,582 10,995,791 2,429,640 1,583,995 1,371,803 34,130,290 574,429,952 Capital expenditure - - - - - - - - 11,838,761 11,838,761 Construction expenditure capitalised

- 725,310 2,328,426 - 129,963 326,943 19,589 104,000 (3,634,231) (0)

Reclassification - 14,206 51,925 - - - 1,168 - (67,300) (0)Write-offs - (3,681) (475,514) (87,306) (2,867,535) (18,263) (785,110) (6,161) - (4,243,571)Exchange difference - (433,306) (3,776,465) - (226,070) - - - (61,172) (4,497,012)

As at 30 Sept. 2018 7,957,750 112,530,989 397,191,014 4,582,276 8,032,149 2,738,319 819,642 1,469,642 42,206,348 577,528,130

Depreciation Accumulated depreciation and impairment losses:As at 1 January 2017 3,674,163 17,560,487 89,508,679 1,267,225 4,763,802 2,599,559 1,055,561 256,004 - 120,685,480 Charge for the year 411,161 3,210,468 15,819,837 523,415 1,809,362 184,276 93,401 129,239 - 22,181,159 On disposals - (1,142,990) (40,065) - (40,478) (5,894) (20,595) - - (1,250,022)Write-offs - (170,768) (68,601) - (7,703) (446,774) (1,108) - - (694,954)Impairment loss - 212,210 3,007,891 - 186,285 - - - 15,771,868 19,178,254 Exchange difference - 1,519,952 19,471,713 - (319,077) - - - 5,513 20,678,101

As at 31 December 2017 4,085,324 21,189,359 127,699,454 1,790,640 6,392,191 2,331,167 1,127,259 385,243 15,777,381 180,778,018

As at 1 January 2018 4,085,324 21,189,359 127,699,454 1,790,640 6,392,191 2,331,167 1,127,259 385,243 15,777,381 180,778,018 Charge for the year 184,940 2,576,089 12,527,083 367,456 1,004,521 31,305 63,082 269,256 - 17,023,732 On disposals - - - - - - - - - - Write-offs - (956) (472,093) (87,306) (2,849,442) (32,203) (778,316) 8,460 - (4,211,856)Reclassification - - - - - - - - - - Exchange difference - (180,418) (1,351,282) - (1,046,095) - - - (2,598) (2,580,393)

As at 30 Sept. 2018 4,270,264 23,584,073 138,403,163 2,070,790 3,501,175 2,330,269 412,025 662,960 15,774,783 191,009,501

Carrying amountAs at 30 Sept. 2018 3,687,486 88,946,916 258,787,851 2,511,486 4,530,974 408,050 407,618 806,682 26,431,565 386,518,628

At 31 December 2017 3,872,426 91,039,100 271,363,188 2,878,942 4,603,600 98,473 456,736 986,560 18,352,909 393,651,934


16

Lafarge Africa Plc


Company Leasehold Land Buildings Production Plant Capitalised Spares

Furniture Motor Vehicles Computer Equipment

Ancillary Plant & Machinery

Construction Expenditure

Total

N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000Cost:

As at 1 January 2017 2,370,573 3,021,987 137,112,353 2,365,440 2,430,011 1,322,156 1,450,221 556,533 5,163,670 155,792,944 Capital expenditure - - 550,721 - - - - - 11,984,645 12,535,366 Construction expenditure capitalised

- 1,203,917 19,607,018 2,304,142 9,412 163,670 152,338 99,557 (23,540,054) -

Internal merger through business combinations

5,436,994 74,973,776 126,621,618 - 2,352,169 897,922 119,428 - 28,144,907 238,546,814

Disposals - (1,802,191) (5,388) - (43,737) (5,894) (20,595) - - (1,877,805)Write-offs - (517,655) (207,183) - (7,747) (517,917) (1,267) - - (1,251,769)

As at 31 December 2017 7,807,567 76,879,834 283,679,139 4,669,582 4,740,108 1,859,937 1,700,125 656,090 21,753,168 403,745,550

Leasehold Land Buildings Production Plant Capitalised Spares Furniture Motor Vehicles Computer

Equipment Ancillary Plant &

Machinery Construction Expenditure Total

N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000Cost:As at 1 January 2018 7,807,567 76,879,834 59,276 4,669,582 59,276 1,859,937 1,700,125 656,090 21,753,168 403,745,550 Capital expenditure - - - - - - - - 5,896,619 5,896,619 Construction expenditure capitalised

- 725,310 1,179,870 - (23,978) 217,873 19,589 104,000 (2,222,664) -

Write-offs - (0) (472,719) (87,306) (2,691,132) (13,063) (785,110) (6,161) - (4,055,492) -

As at 30 Sept. 2018 7,807,567 77,605,144 766,427 4,582,276 (2,655,834) 2,064,746 934,604 753,929 25,427,122 405,586,677

Accumulated depreciation and impairment losses:

As at 1 January 2017 19,171 1,033,734 34,081,776 1,267,225 2,359,612 1,102,561 1,055,561 256,004 - 41,175,644 Internal merger through business combinations

3,614,460 10,784,642 26,461,517 - 1,048,764 891,741 107,655 - - 42,908,779

Charge for the year 400,916 2,160,386 12,747,784 523,415 81,807 171,010 89,710 129,239 - 16,304,267 On disposals - (1,142,990) (5,278) - (40,478) (5,894) (20,595) - - (1,215,235)Write-offs - (170,768) (68,601) - (7,703) (446,774) (1,108) - - (694,954)

As at 31 December 2017 4,034,547 12,665,004 73,217,198 1,790,640 3,442,002 1,712,644 1,231,223 385,243 12,394,270 110,872,771

As at 1 January 2018 4,034,547 12,665,004 73,217,198 1,790,640 3,442,002 1,712,644 1,231,223 385,243 12,394,270 110,872,771 Charge for the year 176,717 1,748,023 9,354,814 367,456 521,316 15,492 61,804 269,256 - 12,514,878 Write-offs - - (471,050) (87,306) (2,673,063) (27,003) (778,316) 8,460 - (4,028,278)As at 30 Sept. 2018 4,211,264 14,413,027 82,100,963 2,070,790 1,290,256 1,701,133 514,710 662,960 12,394,270 119,359,372

Carrying amountAs at 30 Sept. 2018 3,596,303 63,192,118 (81,334,536) 2,511,486 (3,946,089) 363,613 419,894 90,969 13,032,852 286,227,305

At 31 December 2017 3,773,020 64,214,830 210,461,941 2,878,942 1,298,106 147,293 468,902 270,847 9,358,898 292,872,779

14.12 Depreciation

2018 2017 2018 2017N'000 N'000 N'000 N'000

Cost of sales 16,154,718 21,447,285 12,379,493 15,815,377 Administrative expenses 675,248 733,874 135,386 488,890

16,829,966 22,181,159 12,514,879 16,304,267

Depreciation for the year has been charged as follows: Group Company

17

Lafarge Africa Plc

15 Intangible assets

30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

N'000 N'000 N'000 N'000

CostAt 1 January 5,102,341 2,914,806 - - Addition 4,022,350 228,192 2,759,109 - Reclassification - - - Exchange difference (199,402) 1,959,343 - -

8,925,289 5,102,341 2,759,109 -

Accumulated amortisationAt 1 January 2,468,015 1,351,307 - - Charge for the year 438,279 166,023 - - Reclassification - - - Impairment - 226,670 - - Exchange difference (45,006) 724,015 - -

2,861,288 2,468,015 - -

Carrying amount 6,064,001 2,634,326 2,759,109 -

15

15.1 Merger of UNICEM and Atlas with Lafarge Africa Plc

15.2

Group

Intangible assets represents mineral rights, good will and computer software in the Group's operations. The addition in the Company represents the company's investment in a new ERP software (Systems, Applications and Products)

Prior to the liquidation of Nigerian Cement Holdings (NCH), included in other reserves was Quasi equity instrument amounting to a sum of NGN 139billion which represented USD 493 million loans originally due to Holderfin B.V. but later assigned to Caricement B.V. This instrument was initially carriedas loans in prior years but was converted to an equity instrument in July 2016, with amendments made to the existing loan agreements. Amendments to theloan agreements showed that repayment of the loans was at the discretion of the Company and due on liquidation of the borrower.

In 2017 and upon the liquidation of NCH, the outstanding Quasi-Equity instrument of USD344 million (inclusive of accrued interest of USD17.2 million)was converted to loan in the books of Lafarge Africa. Subsequently, loans payable to Caricement B.V were used in subscribing for rights taken up byCaricement B.V in respect of the rights issue via a debt to equity conversion as at 31 December 2017.

Liquidation of ECH and NCH

On 11 December 2017, in order to streamline the Group structure, Egyptian Cement Holdings (ECH) and Nigerian Cement Holdings (NCH) were liquidatedand their assets and liabilities assumed by Lafarge Africa. This was done in order for Lafarge Africa to have direct ownership of UNICEM.

Business CombinationThe Group applies the pooling of interest method for its business combination under common control. The difference between the net assets acquired at their carrying value and the consideration paid is recognised in equity. In 2017, Lafarge Africa Plc acquired the remaining non-controlling interest in AshakaCem; merged UNICEM and Atlas into Lafarge Africa Plc and also liquidated ECH and NCH.

In 2017, the Company sought and obtained shareholders' and regulatory approval to merge with two wholly owned subsidiaries, UNICEM and Atlas, effective on 22 December 2017.The merger was effected in 2017 and the operational integration of the entities has been finalised. The subsidiaries which were merged were ultimately controlled by the same party before and after the merger and Common control is therefore not transitory. Consequently, this is a business combination of entities under common control.

The Directors have elected not to restate the comparatives in the Separate Statement of profit or loss and other comprehensive income as this is not explicitly required by the standards.

The net assets of these subsidiaries were transferred to the Company at no purchase consideration and recognised in other reserves in accordance with the Group's accounting policy.


Group

18

Lafarge Africa PlcNotes to the Consolidated and Separate Financial Statements for the year ended 30 September 2018

16 Interests in other entities

Investment in subsidiaries

30 Sept.2018

Name of entity Principal activities Place of

Incorporation Proportion Cost

% N'000Lafarge Ready Mix Nigeria Limited Aggregate and Concrete Nigeria 100 50,000 Lafarge South Africa Holdings (PTY) Limited Building

Materials South Africa 100 118,141,539

Ashaka Cement PLC Cement Nigeria 100 63,896,867 182,088,406

31 December 2017

Name of entity Principal Activities Place of Incorporation

Proportion Cost

% N'000Lafarge Ready Mix Nigeria Limited Aggregate and Concrete Nigeria 100 50,000

Lafarge South Africa Holdings (PTY) Limited Building Materials

South Africa

100 118,141,539

Ashaka Cement PLC Cement Nigeria 100 63,896,867 182,088,406

30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

17 Other financial assets N'000 N'000 N'000 N'000 Non currentAvailable for sale - 11,471 - - Other financial assets (Note 17.1) 2,741,918 1,571,151 2,741,918 1,556,738

2,741,918 1,582,622 2,741,918 1,556,738

Current:Other financial assets (Note 17.2) 749,158 592,538 226,496 326,635

3,491,076 2,175,160 2,968,414 1,883,373

30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

17.1 Other financial assets - Non current N'000 N'000 N'000 N'000 Loan to CBI Ghana 1,578,312 1,370,832 1,578,312 1,370,832

Receivable from third parties 1,163,606 200,319 1,163,606 185,906 2,741,918 1,571,151 2,741,918 1,556,738

17 Other financial assets - Current

30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

N'000 N'000 N'000 N'000 Loan to related company 328,711 - - - Staff loans 1,954 15,334 1,954 15,334 Short term receivables 193,951 362,406 - 96,503 Loan to CBI Ghana 224,542 214,798 224,542 214,798

749,158 592,538 226,496 326,635

Group Company

Group

Group

The Group’s principal subsidiaries as at 30 Sept 2018 are set out below. Unless otherwise stated, they have share capital consisting solely of ordinary sharesthat are held directly by the Group, and the proportion of ownership interests held equals the voting rights held by the Group. The place of incorporation isalso their principal place of business.

Company

Company

19


18 Derivative financial instruments

Assets Liabilities Assets Liabilities N'000 N'000 N'000 N'000

Caricement B.V 10,615 647,570 640,091 4,212,406

10,615 647,570 640,091 4,212,406 19 Other assets

30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

N'000 N'000 N'000 N'000

Non current 18,612,631 20,803,113 16,113,033 14,984,747 Current 11,959,368 15,162,092 10,354,796 10,679,505

30,571,999 35,965,205 26,467,829 25,664,252

Advance payment to suppliers 4,438,158 3,960,699 3,416,404 2,820,447 Prepaid medical - 23,293 - 23,293 Defered charges 10,800 16188 10,800 16,188 Prepayment for Gas 13,455,568 9,833,096 13,455,568 9,833,096 Rental lease 714,095 709,244 - - Prepaid rent 268,454 581,164 230,245 510,291 Prepaid insurance 99,218 297,719 75,864 221,161 Prepaid expenses 1,508,565 1,087,127 1,113,086 536,960 Advance payment to transporters 5,388,158 8,538,932 5,388,158 8,538,932

Advance payment of taxes and levies 1,400,000 1,052,287 1,400,000 1,052,287

Letters of credit 1,862,166 7,645,483 - - Long term prepayments - 34,232 - 34,232 Deposit for imports 1,377,704 2,077,365 1,377,704 2,077,365 Other assets 49,113 108,376 - -

30,571,999 35,965,205 26,467,829 25,664,252

20 Inventories

30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

N'000 N'000 N'000 N'000

Raw materials 12,153,392 12,702,259 10,017,123 10,653,843 Work in progress 10,282,732 10,860,537 227,641 435,337 Finished goods 11,503,224 12,357,522 11,080,595 11,787,460 Spare parts 21,143,073 19,115,915 15,693,883 14,146,953 Other supplies 3,821,916 3,230,233 2,107,440 2,034,238

58,904,337 58,266,466 39,126,682 39,057,831

21 Trade and other receivables

30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

N'000 N'000 N'000 N'000

Trade receivables:Third party sales 17,533,380 20,123,998 2,752,166 2,458,322 Related party sales 680,357 814,668 766,595 1,301,250

18,213,737 20,938,666 3,518,761 3,759,572 Impairment on trade receivables (573,992) (954,963) (108,758) (127,621) Net trade receivables 17,639,745 19,983,703 3,410,003 3,631,951

Other receivables 6,683,293 3,479,803 5,002,071 1,411,158 Due from related parties 5,257,171 1,646,610 8205784 10,887,861 Net other receivables 11,940,464 5,126,413 13,207,855 12,299,019

Total trade and other receivables 29,580,209 25,110,116 16,617,858 15,930,970

Group

Group Company

Company

Group Company

The Group/Company's derivative financial instruments arose from Non-deliverable foreign exchange forward (NDF) contracts with commercial banks thatwere yet to mature as at reporting date, and includes:

30-Sep-18 31-Dec-17

20


30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

N'000 N'000 N'000 N'00022 Cash and cash equivalents

Restricted cash (Note 22.1) 1,066,377 20,481,593 1,066,377 20,481,593 Cash in hand and at bank (Note 22.2) 16,453,640 29,933,164 14,643,004 21,217,261

Cash and cash equivalents in the statement of financial position 17,520,017 50,414,757 15,709,381 41,698,854

22.1 Restricted cash

22.2 Cash and cash equivalents in the statement of cash flowsFor the purpose of cash flow statement, cash and cash equivalents comprises:

30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

N'000 N'000 N'000 N'000

Cash in hand and at bank 16,453,640 29,933,164 14,643,004 21,217,261 Less: bank overdrafts (29,981,610) (31,081,780) (13,636,010) (15,037,780)

Cash and cash equivalents in statement of cash flows

(13,527,970) (1,148,616) 1,006,994 6,179,481

23 Share capital and Share premium23.1 Share capital

30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

N'000 N'000 N'000 N'000Authorised:10,000,000,000 ordinary shares of 50k each 5,000,000 5,000,000 5,000,000 5,000,000

Issued and fully paidOrdinary shares of 50k each

No of shares Share capital '000 N'000

At 1 January 2018 5,575,776 2,787,888 Issued during the year (Note 23.1.1) 3,097,653 1,548,826 At 30 Sept. 2018 8,673,429 4,336,714

At 1 January 2017 5,480,734 2,740,367 Issued during the year 95,042 47,521 At 31 December 2017 5,575,776 2,787,888

23.1.1 Addition of shares during the year represent the allotment of shares following rights issue which commenced in 2017.

23.2 Share premium No of shares Share premium

'000 N'000

At 1 January 2018 5,575,776 222,272,108 Issued during the year 3,097,653 130,101,427 Transactional share issue costs -1,764,769 At 30 Sept. 2018 8,673,429 350,608,766

At 1 January 2017 5,480,734 217,528,456 Issued during the year 95,042 4,743,652 At 31 December 2017 5,575,776 222,272,108

Group

Group

Company

As at period end, cash and cash equivalents comprised of restricted cash which represents unclaimed dividend amounting to N1.07 billion (2017: N1.07billion). Also included in 2017 Cash and cash equivalents is N19.4 billion representing proceeds from right issue of shares to minority shareholders who took up 456,830,344 rights in the recently concluded Rights issue offer.

Company

Company

Group

21


24 Basic earnings per share

30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

N'000 N'000 N'000 N'000

(Loss) /profit attributable to equity holders of the Company

(10,373,024) 4,836,600 (1,919,221) 6,888,539

Average number of ordinary shares in issue (Basic) 8,673,429 5,269,745 8,673,429 5,269,745

Basic earnings per share (Kobo) (120) 92 (22) 131

25 Deposit for shares

30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

N'000 N'000 N'000 N'000Cash received for rights issue** 19,415,289 - 19,415,289 Quasi equity loan converted for right issue 112,234,964 - 112,234,964 Right issue costs (1,233,381) (1,233,381)

- 130,416,872 - 130,416,872

**

26 Transaction costs on proposed right issue

27 Foreign currency translation reserve

28 Other reserves arising on business combination and re-organisations

Basic earnings per share is calculated by dividing the (loss)/profit attributable to equity holders of the Company by the weighted average number ofordinary shares outstanding at the end of the reporting period.

Group

Group Company

The other reserves arising on business combination and re-organisation is used to recognise the adjustments arising from business combination/re-organisation for entities under common control, when the pooling of interest method has been used.

Company

When the recently concluded Rights Issue was opened, both Associated International Cement UK and Lafarge Associated Nigeria Ltd traded their Rights;431,433,751 units and 906,656,548 units respectively to Caricement BV. Including its own Rights (872,151,809 units), Caricement BV subscribed to a totalof 2,210, 242,107 units. Additional 430,580,572 units of shares, not taken up by the minority shareholders, was also taken up by Caricement B.V, resultingto a total of 2,640,822,679 rights taken up.Quasi-Equity loan due to Caricement B.V. was converted for the purchase of these rights in a debt-for-equity conversion amounting to N93.90 billion.Cash received for rights issue represents proceeds from right issue of shares to minority shareholders who took up 456,830,344 rights out of the totalavailable rights of 3,097,653,023 at the rights issue price of N42.50 amounting to N19.42billion.

In 2017, the Company allotted N131.6 billion by way of a Rights Issue of 3,097,653,023 ordinary shares of 50 kobo each at N42.50 per share to existingshareholders on the basis of five (5) new ordinary shares for every nine (9) existing ordinary shares held. At the conclusion of the offer, the Rights Issuewas 100% subscribed and the Board of Directors on 28th December, 2017 passed a resolution to approve the basis of allotment and this was approved inMarch 2018 and thereby allotted. In 2017, LafargeHolcim Group, majority shareholder, re-organised its shareholding in the Company. Prior to this re-organisation, LafargeHolcim equityinterest was held via six (6) of its subsidiaries i.e Associated International Cement UK, Financiere Lafarge SAS, Holcibel SA, Lafarge Nigeria UK Ltd,Lafarge Associated Nigeria Ltd and Lafarge Cement International BV. At the conclusion of the re-organisation through the nominal transfer window of theNigerian Stock Exchange (NSE), the shares held by Lafarge Nigeria UK Ltd (427,453,603 units) were transferred to Associated International Cement UKwhile the shares held by Financiere Lafarge SAS (797,234,683 units), Holcibel S.A (454,493,279 units) and Lafarge Cement International B.V (318,145,295units) were transferred to Caricement BV, a subsidiary company of LafargeHolcim Group.

This represents exchange differences arising from the translation of the financial statements of Lafarge South Africa to the Group’s reporting currency which is Naira.

This represent costs incurred on on-ongoing N90b rights issue which will be completed before the end of the year.

Subsequent to the year-ended 31st Decemeber, 2017 and at the point of clearance of the rights issue allotment proposal, the Securities & ExchangeCommission (SEC) directed that the 430,580572 additional rights taken up by Caricement BV. should be subscribed to by way of cash rather than by debtto equity. Thus the total cash received into the offer proceeds account at the point of clearance of the revised allotment proposal by SEC in Q1 2018increased by N18,299,674,310 to N37,714,963,930 while total rights subscribed to by way of debt to equity reduced by the same amount (N18,299,674,310)to N93,935,289,548.

22

Lafarge Africa Plc

29 Loans and borrowings

(a) 30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

N'000 N'000 N'000 N'000

Non-current 177,406,550 68,715,378 146,718,586 64,900,757 Current 77,117,274 187,831,582 89,426,359 190,724,579 Total loans and borrowings 254,523,824 256,546,960 236,144,945 255,625,336

Split into:Power fund 13,088,945 7,698,505 6,476,415 7,698,505 Bond 62,288,544 59,842,611 62,288,544 59,842,611 Promissory Note and Commercial Paper 39,330,038 44,275,864 39,330,038 44,275,864 Related party loan 139,512,404 144,391,559 128,049,948 143,808,356 Lafarge Gypsum S.A Pty Ltd 303,892 338,421 - - Total loans and borrowings 254,523,824 256,546,960 236,144,945 255,625,336

(b) Movement in loans and borrowings 30 Sept

2018 31 Dec

2017 30 Sept

2018 31 Dec

2017 N'000 N'000 N'000 N'000

At 1 January 256,546,960 104,873,120 255,625,336 106,380,681 Transfer through business re-organisation - 2,781,482 Additions:Loan received 100,302,924 195,099,306 81,008,163 187,310,535

356,849,884 299,972,426 336,633,499 296,472,698

Interest expensed 23,502,117 22,067,619 23,352,841 24,782,932 Interest paid (22,530,343) (16,746,868) (19,667,774) (14,919,980)Principal repaid (103,844,021) (138,981,397) (105,087,639) (138,646,769)Conversion of Quasi-equity - 199,453,879 - 199,453,879 Reclassification - (1,698,932) - (1,250,365)Converted for Right Issue - (112,234,964) - (112,234,964)Exchange (gain) / loss 546,187 4,715,197 914,018 1,967,905 Closing Bal. 254,523,824 256,546,960 236,144,945 255,625,336

30 Provisions

30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

N'000 N'000 N'000 N'000

Non current (Note 30.1) 3,772,118 3,472,388 967,806 909,320 Current (Note 30.2) 816,471 1,166,217 519,526 895,268

4,588,589 4,638,605 1,487,332 1,804,588

30.1 Non current 30 Sept

2018 31 Dec

2017 30 Sept

2018 31 Dec

2017 Site restoration cost N'000 N'000 N'000 N'000At 1 January 3,472,388 2,200,640 909,320 563,468 Transfer through business re-organisation - - - 104,053 Provision made during the year 365,329 297,192 73,904 311,000 Utilised (200,448) (14,470) (15,418) - Change in estimate - (390,479) - (187,613)Reclassification 135,776 (40,753) - - Unwinding of discount 43,292 182,154 - 118,412 Exchange difference (44,219) 1,238,104 - - Closing Balance 3,772,118 3,472,388 967,806 909,320


The provision for site restoration represents an estimate of the costs involved in restoring production sites at the end of the expected lifeof the quarries. The provision is an estimate based on reclamation closure expert valuation and management's re-assessment. The costwould be unwound for a period of 5-15 years for the Group and Company. The long term inflation and discount rates used in the estimatefor Nigerian entities was 8.0% and 8.1% respectively while for South African entities the long term inflation and discount rates used was2.0% and 6.6% respectively.

Group Company

Group Company

Group Company

Group Company

23


30.2 CurrentGroup Productivity

bonus Total

N'000 N'000At January 2017 1,176,910 1,176,910 Reclassification (34,544) (34,544)Provision made during the year 2,384,904 2,384,904 Payment (2,361,053) (2,361,053)Exchange differences - At 31 December 2017 1,166,217 1,166,217 Reclassification (52,211) (52,211)Provision made during the year 1,252,995 1,252,995 Payment in the year (1,550,530) (1,550,530)Exchange differences - - At 30 Sept. 2018 816,471 816,471

Company Productivity bonus

Total

N'000 N'000 At January 2017 841,526 841,526 Transfer through business re-organisation 124,479 124,479 Provision made during the year 1,989,016 1,989,016 Payment (2,059,753) (2,059,753)At 31 December 2017 895,268 895,268 Transfer through business re-organisation 874,537 874,537 Provision made during the year - - Payment in the year (1,250,280) (1,250,280)At 30 Sept. 2018 519,525 519,525

31 Deferred revenue 30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

N'000 N'000 N'000 N'000Non-current 1,435,418 1,518,467 1,435,418 1,518,467 Current 110,732 110,732 110,732 110,732

1,546,150 1,629,199 1,546,150 1,629,199

The provision for productivity bonus is based on employee performance during the year. It is payable in the year 2019.

Group Company

24


32 Trade and other payables

Trade payables 30 Sept

2018 31 Dec

2017 30 Sept

2018 31 Dec

2017 N'000 N'000 N'000 N'000

Trade payables 40,124,370 40,149,875 20,873,848 19,777,538 Related party - technical service fee (Note 32.1)

22,653,659 27,981,758 18,243,036 18,273,023

62,778,029 68,131,633 39,116,884 38,050,561 Other payables: - - - Customers' deposits 3,122,760 3,804,619 2,162,500 2,750,491 Related companies 13,596,963 10,264,271 12,619,395 7,226,888 Withholding tax payable 572,645 1,185,171 617,374 1,071,661 Value added tax payable 1,699,325 1,592,063 1,471,868 1,574,929 Accrued interest 540,631 451,799 - - Employee provisions and other liabilities 470,953 143,149 259,651 108,619 Rent received in advance 1,729 1,729 1,729 1,729

Professional fees 139,103 94,870 110,383 85,870 Accruals 20,758,349 20,499,103 18,745,892 13,075,698 Other creditors 5,513,113 3,679,146 4,097,729 2,830,981 Dividend payable (Note 32.2) 4,317,506 3,152,627 4,317,506 3,152,627

50,733,079 44,868,547 44,404,028 31,879,493

Trade and other payables 113,511,107 113,000,180 83,520,912 69,930,054

32.1 LafargeHolcim Technical service fees

-

-

-

-

32.2 Dividend payable

30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

N'000 N'000 N'000 N'000

At 1 January 3,152,627 13,459,412 3,152,627 13,459,412 Dividend declared:Dividends declared to parent 9,928,888 4,177,358 9,928,888 4,177,358 Dividends declared to non controlling interest 3,081,255 1,577,413 3,081,255 1,577,413 Payment to the equity holders:Payment to the equity holders of the parent (8,764,009) (14,703,412) (8,764,009) (14,703,412) Payment to the Non controlling interest (3,081,255) (1,577,413) (3,081,255) (1,577,413) Dividend to be refunded by registrars - 219,269 - 219,269 Closing Balance 4,317,506 3,152,627 4,317,506 3,152,627

30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

Breakdown of dividend payable: N'000 N'000 N'000 N'000Lafarge Associated Nigeria Limited 4,098,237 2,933,358 4,098,237 2,933,358 Non controlling interest 219,269 219,269 219,269 219,269

4,317,506 3,152,627 4,317,506 3,152,627

32.3 Dividend paid

30 Sept2018

31 Dec 2017

30 Sept2018

31 Dec 2017

N'000 N'000 N'000 N'000

Lafarge Africa Plc 8,764,009 14,703,412 8,764,009 14,703,412 Paid to Non Controlling Interest 3,081,255 1,619,276 3,081,255 1,577,413 Total 11,845,264 16,322,688 11,845,264 16,280,825

Group Company

The guarantee by LafargeHolcim of the achievement of raw material reserves and production targets by Lafarge Africa Plc.

The following dividend were approved by the shareholders and subsequently paid during the year:

The Industrial Franchise Agreement has been registered with National Office for Technology Acquisition and Promotion (NOTAP) inNigeria. It represents 2% (AshakaCem) and 3.5% (WAPCO) of net sales for technical knowhow, business support and licencingarrangement.

This represents the outstanding liability on the Industrial Franchise Agreement with LafargeHolcim of Switzerland. The terms of theagreements include:

Group Company

The right for Lafarge Africa Plc to use technical research and development information relating to production and distribution of cementproducts;

The provision by LafargeHolcim of technical and operational support through the secondment of suitably qualified expatriate personnel,as requested by Lafarge Africa Plc and approved by the Federal Government of Nigeria.

Group Company

Group Company

25

lafarge africa plc unaudited financial statements 30 sep 2018...the accompanying notes and...

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