CONTENTS Lafarge Cement WAPCO Nigeria Plc 02 The Lafarge Advantage 05 Notice of Annual General Meeting 09 Directors’ and Statutory Information 10 Chairman’s Statement 11 Board of Directors 14 Board of Directors’ Profile 16 Financial Highlights 20 Report of the Directors 21 Management Team 27 Health and Safety Report 29 Environment Report 30 Human Resources and People Development Report 32 CSR Report 34 Sales and Marketing Report 36 The Accounts 37 Shareholding Information 58 Share Capital History 59 Mandate for e-Dividend Payment 61 Proxy Form 63 2011 ANNUAL REPORT - LAFARGE CEMENT WAPCO NIGERIA PLC PAGE 1 LAFARGE CEMENT WAPCO NIGERIA PLC L-R: The Country CEO, Lafarge Nigeria and Benin Republic, Mr. Jean-Christophe Barbant; President Goodluck Ebele Jonathan GCFR; Chairman, Board of Directors, Chief Olusegun Osunkeye OFR, OON and Group Chairman and Chief Executive Officer, Lafarge Mr. Bruno Lafont at the inauguration of Ewekoro II Plant Lafarge WAPCO: Supporting Nigeria’s Development Lafarge Cement WAPCO Nigeria Plc, a foremost cement manufacturing and marketing company in Nigeria has re-opened a new vista in cement production. A landmark achievement was demonstration of our commitment extract mineral resources from the recorded by Lafarge WAPCO to support the socio-economic earth and transform them into major on December 20, 2011 with the development of the country. construction materials. Our activities inauguration of its state-of-the- meet the basic needs of mankind by art 2.5 metric tonnes brownfield Having fulfilled the national desire to providing materials for housing and cement plant (Lakatabu) in Ewekoro establish a cement manufacturing infrastructures in the country. by His Excellency, President company, Lafarge WAPCO, since Goodluck Ebele Jonathan GCFR. its establishment in 1959 has grown Over the years, Lafarge WAPCO has With this inauguration, the cement sustainably and made tremendous acquired strategic visible presence production capacity of the Company contribution to the availability of in the business environment whilst was doubled from 2.0 to 4.5 million cement in the country. building a visible and enduring metric tonnes which will not only legacy on the nation’s landscape. increase the availability of cement This puts the Company at the Lafarge WAPCO continues to have to Nigerians, but will also assist in forefront of exploration, production tremendous positive impact on its achieving the drive for affordable and marketing of cement in Nigeria. numerous stakeholders: Commun housing goal of the Federal Lafarge WAPCO is in the business ities,Customers,Shareholders and Government. This is another vivid of ‘Bringing Materials to Life’ as we Employees. PAGE 2 ANNUAL REPORT - LAFARGE CEMENT WAPCO NIGERIA PLC 2011 LAFARGE CEMENT WAPCO NIGERIA PLC • 1979: Quoted on the Nigerian Stock Exchange • 1980: Sagamu Capacity upgraded to 850,000 tonnes cement per annum with addition of one Raw Mill and one Roller Crusher for limestone. The Plant’s current capacity is about 900,000 tonnes • 2003: The Ewekoro Plant was replaced by a new and modern, state-of-the-art plant, which was commissioned by His Excellency, Olusegun Obasanjo – former President, Federal Republic of Nigeria • 2008: Commencement of our expansion project (Lakatabu), The Vice President, Business Support, Lafarge Nigeria and Benin Republic, Albert Sigei; Alake of Egbaland, a 2.5mt plant to double the HRM,Oba Adedotun Aremu Gbadebo; Olowu of Owu Kingdom, HRM, Oba Adegboyega Olusanya Dosunmu and other Obas at the inauguration of Ewekoro II Plant cement production capacity of the Company • Febuary 2009: Foundation Laying Ceremony of Lakatabu Lafarge WAPCO is known for putting • 1960: No.1 kiln commissioned • November 2010: Launch of values at the forefront of the way it with 200,000 tonnes/annum New Product, Elephant Supaset does business. (TPA) capacity Cement • 1964: No.2 Kiln installed- • June 2011: 90MW Power Plant The following principles are capacity increased to 400,000 Commissioned the hallmark of our business TPA • July 2011: Ewekoro II Plant operation: Health and Safety, • 1972: No. 3 kiln installed- Kiln lit up People Development, Corporate capacity increased to • July 2011: 1st Clinker Governance, Customer Care/ 700,000TPA Production of the Ewekoro II Market Orientation, Corporate Social • 1977: Peak Cement production Plant Responsibility, Performance, Value achieved- 706,500 tonnes • September 2011: 1st Cement Creation, Respect for Employees • 1978: Commissioned a second Production of the Ewekoro II and Local Culture, Environmental factory in Sagamu as a full wet Plant Protection, Conservation of Natural process plant with an installed • September 2011: 1st bag of Resources and Energy. capacity of 600,000 tonnes Cement from the Ewekoro II cement per annum Plant As a result of its take-over of Blue Circle Industries Plc, U.K on July 1 2001, Lafarge SA of France became the majority shareholder in WAPCO, culminating in February 2008, to the change of name from West African Portland Cement Plc to Lafarge Cement WAPCO Nigeria Plc. Following the acquisition, WAPCO has integrated into the Lafarge culture, implementing process re- engineering and imbibing Lafarge’s Best Practices MILESTONES Since establishment of its first factory in Ewekoro in 1960, Lafarge WAPCO has achieved the following milestones: Cross section of guests at the inauguration of Ewekoro II Plant. 2011 ANNUAL REPORT - LAFARGE CEMENT WAPCO NIGERIA PLC PAGE 3 LAFARGE CEMENT WAPCO NIGERIA PLC Driving profitability with efficient supply chain. • December 2011: Inauguration • Shell Trustees Residential Lafarge WAPCO remains the only of Ewekoro II Cement Plant Estate in Abuja cement company in Nigeria with two by His Excellency, President • The Stallion Estate, Abuja unique brands: Elephant Cement, a Goodluck Ebele Jonathan • Third Mainland Bridge, Lagos general purpose cement that has GCFR. • Nigeria Police Force greatly contributed to the economic Headquarters, Lagos development of the country for OUR BRANDS • MKO Abiola Gardens, Lagos over 50 years and the new product, Elephant Cement • NITEL Building Lagos Supaset Cement, specifically A five-decade-old formidable brand • Niger House, Lagos formulated for Block making and of impeccable standard and quality. • Airport Hotel, Lagos Precast. It backs solution provision with • Cocoa House,Ibadan power, maturity, resilience, durability • Premier Hotel, Ibadan and reliability. Little wonder it has consistently won the NIS Certificate Elephant Supaset Cement for product quality by the Nigerian Elephant Supaset Cement Standard Organization for over two is another Portland cement decades now. specifically formulated to meet the requirements of the block The Elephant brand has helped making and precast segment of the to build that edifice, brought that Construction Industry. Its birth was monumental project to life, created borne out of profound customer that serene atmosphere and research to satisfy the need for positively impacted the lives of specialized cement for these Nigerians socio-economically. segments of the industry. Elephant Supaset combines three key value Since its existence in 1960, Elephant propositions of Early Setting, Early Cement has made visible landmark Strength and the unique Latter in the areas of developmental Strength which is a distinguished projects which include: quality of our flagship, Elephant • The National Assembly Cement, that has been known over Complex, Abuja the years. • The Federal Secretariat, Abuja Lafarge Research Center, L’Isle d’Abeau, France, With Elephant Supaset Cement, raw material powders discharge Laboratory. PAGE 4 ANNUAL REPORT - LAFARGE CEMENT WAPCO NIGERIA PLC 2011 THE LAFARGE ADVANTAGE L-R: Managing Director and Chief Executive Officer, Lafarge Cement WAPCO Nigeria Plc, Mr. Joe Hudson; Chairman, Board of Directors, Chief Olusegun Osunkeye OFR, OON; Group Chairman and Chief Executive Officer, Lafarge, Mr. Bruno Lafont and Chief (Dr.) Joseph Sanusi CON at the inauguration of Ewekoro II Plant. Since its acquisition by Lafarge SA, Lafarge WAPCO has become a truly multi- national company, strategically positioned for greater heights. Lafarge is the world leader in To make advances in building The business model focuses Cement materials, second largest materials, Lafarge places the on achieving excellence in local Aggregate producer, the third customer at the heart of its concerns. management while capitalizing largest Concrete producer and the It offers the construction industry on best practices developed third largest Gypsum Wall Board and the general public innovative throughout the world. manufacturer worldwide. solutions bringing greater safety, comfort and quality to their everyday PRESENCE IN AFRICA With 68,000 employees in 64 surroundings. With the acquisition of West African countries, Lafarge posted sales Portland Cement Plc (WAPCO), of Euros 15.9 billion in 2009. In Lafarge’s long-term presence in the AshakaCem Plc (Ashaka), Atlas 2010 and for the sixth year in a row, business, its high degree of vertical Cement, Port-Harcourt and Lafarge was listed in the ‘Global integration and advance in product substantial stake in Unicem, Calabar, 100 Most Sustainable Corporations research and innovation gives the Lafarge holds a leadership position in the World’. With the world’s Company a competitive advantage in the Nigerian cement industry with leading building materials research in terms of product quality and investments in companies that have facility, Lafarge places innovation consistency,