Bamburi Cement : Annual Report & Financial Statements 2023

YEARS OF

REVOLUTIONISING

CONSTRUCTION

IN KENYA

ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

TABLE OF CONTENTS

WHO WE ARE	4
About Bamburi Cement Group	4
Our Brands	8
About Holcim	10

2023 OVERVIEW	12
Group - Key Financial Highlights	14
Value Added Statement	15
Chairman's Statement	16
Group Managing Director's Statement	20
Board of Directors	24
Executive Committee	29

BUSINESS OVERVIEW	30
Operational Review	32
Sales	35
Marketing & Innovations	36
Our Projects	43
Risk and Control	44

GOVERNANCE	45
Corporate Governance Statement	50
Report of the Directors	61
Directors' Remuneration Report	62	70 YEARS OF
Shareholder Profile	67
Report of the Independent Governance Auditor	68	REVOLUTIONISING
		CONSTRUCTION
FINANCIAL REVIEW	70
Corporate Information	71	IN KENYA
Statement of Directors' Responsibilities	72
Independent Auditors' Report	73
Consolidated Statement of Profit or Loss
and Other Comprehensive Income	77
Company Statement of Profit or Loss
and Other Comprehensive Income	78
Consolidated Statement of Financial Position	79
Company Statement of Financial Position	80
Consolidated Statement of Changes in Equity	81
Company Statement of Changes in Equity	83
Consolidated Statement of Cash Flows	85
Company Statement of Cash Flows	86
Notes to the Financial Statements	87
SUSTAINABILITY REVIEW	170
Our Sustainability Framework	174
Climate and Energy	190
Circular Economy	192
Nature and Water	195
People and Human Rights	199

BAMBURI70CEMENTYEARSANNUALOF REVOLUTIONISINGREPORT AND FINANCIALCONSTRUCSTATEMENTSION IN KENYA2023 3

FINANCIAL REVIEW

WHO WE ARE

Bamburi Cement is an Industry captain and member of the Holcim Group.

As a leading clinker, cement and concrete producer in Eastern Africa, Bamburi Cement is at the forefront of innovative and sustainable building solutions.

VISION

To be the undisputed leader and the preferred partner providing innovative high quality sustainable and innovative solutions for nation building.

4	BAMBURI CEMENT ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

Croc frenzy: Nile Crocodiles feeding at Bamburi Haller Park.

OUR

STRATEGY Our Building for Growth Vision is based on 4 Pillars:

GROWTH	PERFORMANCE	PEOPLE	SUSTAINABILITY
Profitable green growth	Drive performance	Engaged and empowered	Be the leader in
ahead of market	through innovation and	workforce, agile, lean,	sustainability in the
	operational excellence	performance focused	building materials and
		organization	construction industry

70 YEARS OF REVOLUTIONISING CONSTRUCTION IN KENYA
70 YEARS OF REVOLUTIONISING CONSTRUCTION IN KENYA	5

WHO WE ARE

Bridging populations: The Dongo Kundu Bypass Highway was built using Power Crete, Power Plus and Duracem (for its durability attribut

4 SUBSIDIARIES

Hima Cement

Limited

A Uganda based subsidiary of Bamburi Cement PLC with 3 plants iin Kasese, Namanve and Tororo.

Bamburi Special Products Limited

The leading supplier of Readymix concrete and Precast concrete blocks with operations in Nairobi and Mombasa.

Lafarge Eco Systems Limited

The environmental arm of Bamburi Cement whose operations are in sustainable land use and quarry rehabilitation.

Diani Estates Limited

Diani's principal activity is management of land reserves on behalf of its parent company, Bamburi Cement.

Diani Estates

Limited

6	BAMBURI CEMENT ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

WHO WE ARE		2023 OVERVIEW		BUSINESS OVERVIEW		GOVERNANCE		FINANCIAL REVIEW		SUSTAINABILITY REVIEW

tes at the bridge area)

OUR PLANTS

The Company operates 5 cement plants from where it serves

Kenya and Uganda markets as well other export markets.

Operate 2 Plants in Kenya

• Integrated Plant (Clinkering and Cement) in Mombasa
• Grinding Plant (Cement) in Athi River

Operate 3 Plants in Uganda

• Integrated Plant (Clinkering and Cement) in Kasese, Western Uganda
• Grinding Plant (Cement) in Tororo
• Blending Station in Namanve

70 YEARS OF REVOLUTIONISING CONSTRUCTION IN KENYA

7

WHO WE ARE

OUR BRANDS

The 457m long Makupa Causeway Bridge links Mombasa City to the Kenyan mainland. It has been built using our sustainably produced Duracem Cement which reduces carbon emissions by 64%.

We have the widest range of green cements for specific applications and segments

8	BAMBURI CEMENT ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

WHO WE ARE		2023 OVERVIEW		BUSINESS OVERVIEW		GOVERNANCE		FINANCIAL REVIEW		SUSTAINABILITY REVIEW

70 YEARS OF REVOLUTIONISING CONSTRUCTION IN KENYA

9

WHO WE ARE

About Holcim

From our operations to ourm products to buildings in use, we are decarbonizing building for a net-zero future

GREEN

OPERATIONS

DECARBONIZING HOLCIM

We are decarbonizing Holcim with green operations, from green energy and mobility to green product formulation, all the way to next generation technologies like carbon capture, usage and storage.

CTION

d

CIRCULAR

CONSTRUCTION

BUILDING NEW FROM OLD

We drive circular construction to build new from the old. As a world leader in recycling we put circularity at the core of everything we do. In Switzerland we launched the world's first cement with 20% recycled construction and demolition waste, and upcycle plastic bags in roofing systems.

10	BAMBURI CEMENT ANNUAL REPORT AND FINANCIAL STATEMENTS 2023