TANGA CEMENT PLC

2017
ANNUAL REPORT
TAARIFA YA MWAKA

Building today’s Dreams

for Tomorrow’s Generations

www.simbacement.co.tz

Simba Cement Annual(S)) Report 2017 - small.indd 1 8/17/18 4:12 PM

 i Tanga Cement PLC ANNUAL REPORT 2017
Building today’s Dreams for tomorrow’s Generations

Simba Cement Annual(S)) Report 2017 - small.indd 2 8/17/18 4:12 PM

 TAARIFA YA MWAKA 2017
2016
Building today’s Dreams for tomorrow’s Generations
Tanga Cement PLC ii

Simba Cement Annual(S)) Report 2017 - small.indd 3 8/17/18 4:12 PM

 Chairman’s Statement

Advocate Lau Masha

Chairman of the Board

We re-affirm our commitment to all

stakeholders through our high quality
cement and clinker and our contribution
towards the sustainable growth and
development of Tanzania, a demonstration
of our brand – “STRENGTH WITHIN”.

01
12 Tanga Cement PLC ANNUAL REPORT 2017
Building today’s Dreams for tomorrow’s Generations

Simba Cement Annual(S)) Report 2017 - small.indd 4 8/17/18 4:12 PM


Introduction
Dear Shareholders, we hereby present the audited trading results of Tanga
Cement Public Limited Company for the year ended 31 December 2017.
2017 was a challenging financial year in the cement and construction
industry.
Sales prices were under significant pressure as the country remains in a net
oversupply of installed cement and clinker capacity.
We re-affirm our commitment to all stakeholders through our high quality
cement and clinker and our contribution towards the sustainable growth
and development of Tanzania, a demonstration of our brand – “STRENGTH
WITHIN”.
Macro-Economic Overview
Our growth in business continues to be anchored on the economic
progress of Tanzania. The Tanzanian Shilling depreciated by three percent
(3%) against the United States Dollar (USD) throughout 2017 due to
imports into the country exceeding exports. Tanzania also experienced
political stability under the leadership of President Magufuli. The average
annual headline inflation rate remained fairly stable increasing to five point
three percent (5.3%) in 2017 from five point two percent (5.2%) recorded in
2016, as a result of governments’ fiscal and monetary policies.
In the year under review, Tanzania’s estimated GDP growth for 2017
remained robust and on par with the six point eight percent (6.8%) growth
of 2016. This was supported by growth in various economic sectors mainly:
Extractive Industries, Telecommunications and Agriculture.
Tanzania’s construction industry is projected to have a positive growth
trajectory informed by a steady population growth with a younger
profile that increases demand for infrastructure, housing and commercial
buildings, emerging middle-class, increased consumer activity and
access to financial services (banking, mortgages and commercial credit).
Anticipated infrastructure projects such as the Standard Gauge Railway,
Uganda-Tanzania oil pipeline, development and upgrade of various ports
and the natural gas pipeline from Mtwara are expected to see cement
demand increase.
We remain optimistic of the ambitious infrastructure development plans
under the Government’s Development Vision 2025 programme and
expect the projects to pick up momentum in quarter two (Q2) of 2018.
Tanga Cement PLC has capacity to meet a significant share of the cement
demand in the country and remains committed to production of superior
cement products.
Financial and Operational Overview
During 2017, the Company focused on increasing sales and production
volumes and to confirm our market competitiveness driven by
operational efficiency and overall business effectiveness in challenging
market conditions.
Despite the fact that the group sales revenue grew by three percent (3%), to
Tanzanian shillings one hundred and seventy two billion (TZS 172bn) from
Tanzanian shillings one hundred, sixty seven billion (TZS 167bn) in 2016,
competitive market headwinds impacted Tanga Cement’s profitability.
Gross profit for 2017 declined by forty six percent (46%) to Tanzania
shillings twenty nine billion(TZS 29bn) from Tanzanian shillings fifty four
billion (TZS 54bn) in 2016.
EBITDA declined to Tanzanian shillings nine billion (TZS 9bn) from Tanzania
nshillings thirty eight billion (TZS 38bn) in the prior year. The reduction in
EBITDA was mainly caused by lower sales prices dictated by the market
compared to the prior year.
Selling and administration expenses increased by ten percent (10%) to
Tanzania shillings twenty billion (TZS 20bn) over the prior year in support
of the significantly improved sales and production volumes. The increase
2017
TAARIFA YA MWAKA
Building today’s
Building today’s Dreams
Dreams for
for tomorrow’s
tomorrow’s Generations
Generations
Simba Cement Annual(S)) Report 2017 - small.indd 5
Chairman’s Statement
in the depreciation charge of six percent (6%) was driven by depreciation
of the new integrated production line for the full year compared to ten (10)
months in the prior year as well as additional capital investments in 2017 to
improve production efficiencies.
The Group recorded a loss before tax of Tanzanian shillings thirty five billion
(TZS 35bn) for 2017 from a profit before tax of Tanzanian shillings six billion
(TZS 6bn) in 2016 which was impacted by the decrease in gross profit and
expenses referred to above as well as the increase in financing cost and
foreign exchange losses on US Dollar denominated term loans for the
second integrated production line which was commissioned in 2016.
The net loss after tax for 2017 of Tanzanian shillings twenty six billion
(TZS 26bn) is down from the net profit of Tanzanian shillings four billion
(TZS 4bn) of 2016.
Cash flows from normal trading activities declined to Tanzania shillings
three billion (TZS 3bn) from Tanzanian shillings twenty billion
(TZS 20bn) in 2016 underlining the very competitive cement market.
Tanga Cement PLC remains optimistic about its sales and cost optimisation
production initiatives as we continually seek to enhance value for
stakeholders. The company remains positive about 2018 despite the
increased competitive landscape. Government initiatives to spur economic
growth through infrastructure development and promotion of local
industries is earmarked to boost local cement demand while reducing the
influx of low cost imported cement.
In support of Government’s industrialisation drive to benefit local
producers, Tanga Cement PLC also started to sell clinker during 2017, which
is showing an encouraging increase in uptake from independent small
cement millers going into 2018. This will benefit the cost of production
throughput and add significant value to the profitability of the company
going forward.
The company achieved a significant safety record during the year reaching
two point six million (2.6 mil) hours without lost time injuries. Our
commitment of creating a safe and sustainable work environment for all
employees and contractors on site forms an integral part of the Simba
Cement corporate culture.
Dividend
During 2017 the board has declared and paid a final dividend for the
2016 financial year of Tanzania shillings twenty five (TZS 25) per share
amounting to Tanzanian shillings one point six billion (TZS 1.6 bn) (2015:
Tanzanian shillings twenty five (TZS 25) per share totalling Tanzanian
shillings one point six billion (TZS 1.6 bn). The total dividend declared and
paid for the 2016 financial year was Tanzanian shillings eighty (TZS 80) per
share amounting to Tanzanian shillings five billion (TZS 5 bn).
The Group has not declared an interim dividend for the 2017 year and does
not anticipate proposing a final dividend to the shareholders in line with
the financial performance for the year. The Board elected to be prudent by
committing available current cash resources to the operational and debt
service commitments.
Conclusion
Tanga Cement PLC remains grateful to its staff for their passion and
dedication to the company and to its customers for their belief in the
Simba Cement brand, as the company works to achieve its short-term and
long-term growth strategy.
With Tanzania being the second-largest construction market in East Africa,
cement output is anticipated to increase and Tanga Cement PLC is well
positioned to take advantage of the growth opportunities in the regional
market. We look forward to reaching greater heights together in 2018 in
co-operation with all our stakeholders.
Advocate Lau Masha
Chairman of the Board
Tanga Cement PLC 02
12
8/17/18 4:12 PM
 Waraka wa Mwenyekiti
Utangulizi
Ndugu wanahisa, tunawasilisha hesabu zilizokaguliwa za Tanga
Cement Public Limited Company kwa kipindi kinachoishia tarehe
31 Disemba 2017.
Mwaka wa kifedha wa 2017 ulikuwa na changamoto katika sekta
ya simenti na ujenzi.
Bei ya kuuzia ilikuwa na shinikizo kubwa kutokana na mahitaji
ya simenti kuwa madogo kuliko kiwango cha usambazaji
kulikotokana na viwanda vipya kuingia sokoni.
Hata hivyo tunawaahidi wadau wetu wote kuwa tutaendelea
kutoa mchango wetu katika maendeleo na ukuaji wa nchi ya
Tanzania kupitia simenti yetu yenye ubora usio tetereka na
kuonesha kwa vitendo kauli mbiu ya chapa yetu - “STRENGTH
WITHIN”.
Mapitio ya Uchumi
Ukuaji wa biashara yetu unaendelea kutegemea maendeleo
ya uchumi wa Tanzania. Mwaka 2017 shilingi ya kiTanzania
ilishuka thamani kwa asilimia tatu (3%) ikilinganishwa na dola
ya kimarekani kutokana na kiwango kidogo cha mauzo ya nje
ya nchi ikilinganishwa na bidhaa zilizoingizwa nchini. Tanzania
pia ilikuwa tulivu kisiasa chini ya utawala wa Mheshimiwa Rais
Magufuli. Kiwango cha mfumuko wa bei kilikuwa cha wastani
kwa kuongezeka mpaka asilimia tano nukta tatu (5.3%) kutoka
asilimia tano nukta mbili (5.2%) cha mwaka 2016 ambacho
kilitokana na sera za kifedha za Serikali.
Katika kipindi hiki cha mwaka 2017, ukuaji wa pato la taifa kwa
Tanzania ulibaki kuwa imara na kwa kiwango cha asilimia sita
nukta nane (6.8%) ikiwa ni ukuaji sawa na wa mwaka 2016. Uimara
huu wa pato la taifa ulisaidiwa na sekta mbali mbali za kiuchumi
kama vile uchimbaji madini, mawasiliano na kilimo.
Sekta ya ujenzi ya Tanzania inatarajiwa kuwa na ukuaji imara
kutokana na ongezeko la idadi ya vijana ambapo itafanya uhitaji
wa ongezeko la miundombinu, makazi na majengo ya biashara,
ongezeko la watu wa kipato cha kati, ongezeko la shughuli za
watumiaji huduma na upatikanaji wa huduma za kifedha (kibenki
na mikopo ya biashara). Miradi ya miundombinu inayotarajiwa
ni kama vile reli ya kiwango (Standard Gauge Railway), bomba
la mafuta toka Uganda kuja Tanzania, upanuzi na uboreshaji
wa bandari mbalimbali pamoja na bomba la gesi asilia kutoka
Mtwara inategemewa kuongeza mahitaji ya simenti.
03 Tanga Cement PLC
Simba Cement Annual(S)) Report 2017 - small.indd 6
Tunaimani matarajio ya maendeleo ya miundombinu yaliyopangwa
na Serikali katika mpango wa dira ya Maendeleo ya mwaka 2025 na
miradi inayotarajiwa itashika kasi katika robo ya pili ya mwaka 2018.
Tanga Cement PLC inao uwezo wa kutimiza mahitaji ya simenti kwa
kiasi kikubwa nchini na tunaahidi kuendelea kuzalisha simenti yenye
ubora wa hali ya juu.
Maelezo ya Fedha na Utendaji
Mwaka wa fedha 2017 kampuni ilijikita katika kuhakikisha inaongeza
mauzo na uzalishaji ili kuwa na uhakika katika uwezo wa kushindana
sokoni pamoja na utendaji bora na ufanisi katika biashara kwenye soko
lenye changamoto nyingi.
Pamoja na kuwa na ongezeko la mauzo la asilimia tatu (3%) , na kufikia
shilingi za kiTanzania bilioni mia moja sabini na mbili (Tsh 172 bilioni)
kutoka shilingi za kiTanzania bilioni mia moja sitini na saba (Tsh 167
bilioni), wimbi la ushindani katika soko liliathiri faida ya Tanga Cement
PLC.
Faida ghafi kwa mwaka 2017 ilipungua kwa asilimia arobaini na sita
(46%) na kuwa shilingi za kiTanzania bilioni ishirini na tisa (Tsh 29 bilioni)
kutoka shillingi za kiTanzania bilioni hamsini na nne (Tsh 54 bilioni) kwa
mwaka 2016.
Mapato kabla ya riba, kodi, na uchakavu (EBITDA) yalipungua hadi
kufikia shilingi za kiTanzania bilioni tisa (Tsh 9 bilioni) kutoka shilingi
za kiTanzania bilioni thelathini na nane (Tsh 38 bilioni) kwa mwaka
uliopita. Kupungua kwa EBITDA kulisababishwa kwa kiasi kikubwa na
bei ndogo ya bidhaa zetu ambazo zilisababishwa kwa kiwango kikubwa
na ushindani wa soko ikilinganishwa na mwaka uliopita.
Gharama za mauzo na uendeshaji ziliongezeka kwa asilimia kumi
(10%) na kufikia shilingi za kiTanzania bilioni ishirini (Tsh 20 bilioni)
ikilinganishwa na mwaka uliopita kutokana na ongezeko la mauzo na
uzalishaji. Uchakavu uliongezeka kwa asilimia sita (6%) uliosababishwa
na uchakavu wa mtambo mpya wa uzalishaji klinka kwa mwaka mzima
ikilinganishwa miezi kumi ya mwaka uliopita pamoja na ongezeko la
uwekezaji wa mitambo mipya kwa mwaka 2017 ili kuboresha ufanisi.
Kampuni (kundi) ilirekodi hasara kabla ya kodi ya shilingi za kiTanzania
bilioni thelathini na tano (Tsh 35 bilioni) kwa mwaka 2017 kutoka faida
kabla ya kodi ya shilingi za kiTanzania bilioni sita (Tsh 6 bilioni) kwa
mwaka 2016 ambayo imesababishwa na kupungua kwa faida ghafi na
matumizi yaliyoelezwa hapo juu pamoja na ongezeko la gharama za
kifedha na hasara iliyotokana na ulipaji mikopo kwa fedha za kigeni
yaani dola za kimarekani zilizokopwa kwaajili ya tanuru ya pili ambayo
ilizinduliwa mwaka 2016.
ANNUAL REPORT 2017
Building today’s Dreams for tomorrow’s Generations
8/17/18 4:12 PM
 Waraka wa Mwenyekiti

Hasara halisi baada ya kodi kwa mwaka 2017 ya shilingi bilioni ishirini
na sita (Tsh 26 bilioni) iko chini ikilinganishwa na faida halisi ya shilingi
bilioni nne (Tsh 4 bilioni) ya mwaka 2016.
Fedha inayotokana na shughuli za biashara ilipungua na kufikia shilingi Hata hivyo tunawaahidi wadau
za kiTanzania bilioni tatu (Tsh 3 bilioni) kutoka shilingi za kiTanzania
bilioni ishirini (Tsh 20 bilioni) mwaka 2016 ikithibitisha ushindani
wetu wote kuwa tutaendelea
mkubwa kwenye soko la simenti. kutoa mchango wetu katika
Tanga Cement PLC ina matumaini na mauzo yake na pia udhibiti wa maendeleo na ukuaji wa nchi
gharama kwenye upande wa uzalishaji wakati ikiendelea kuongeza
thamani kwenye wanahisa wake. Kampuni inatumaini mwaka 2018
ya Tanzania kupitia simenti yetu
utakuwa mzuri ingawa kunaongezeko la ushindani sokoni. Mipango yenye ubora usio tetereka na
ya Serikali ya kukuza uchumi kupitia maendeleo ya miundombinu na
kukuza viwanda vya ndani inatarajiwa kuongeza matumizi ya ndani ya kuonyesha kwa vitendo kauli
simenti wakati ikizuia uingizaji wa simenti ya bei nafuu toka nje ya nchi. mbiu ya chapa yetu -
Katika kuiunga mkono sera ya Serikali ya viwanda ambayo itawafaidisha “STRENGTH WITHIN”.
wazalishaji wa ndani, Tanga Cement PLC pia imeanza kuuza klinka
mwaka 2017, ambapo imeweza kuwauzia wazalishaji wadogo wadogo
wa simenti na inaonesha kuna kiwango cha ukuaji kwa mwaka 2018.
Hii itakuwa na faida kwa upande wa gharama za uzalishaji na kuongeza
faida muhimu kwa kampuni hapo baadaye.
Hitimisho
Kampuni ilifanikiwa kuweka rekodi muhimu ya kiusalama kipindi cha
mwaka wa taarifa hii kwa kufikia masaa milioni mbili nukta sita (milioni Tanga Cement PLC inawashukuru wafanyakazi wake kwa
2.6) bila kupoteza muda kutokana na watu kupata majeraha ama uvumilivu na kujitoa kwaajili ya kampuni na wateja wake
kujeruhiwa. Dhamira yetu ya kuwa na mazingira salama na endelevu wakiiamini chapa ya bidhaa za Simba Simenti, ambapo kampuni
kwa wafanyakazi wetu wote na wakandarasi waliopo kiwandani inafanyakazi ili kufanikisha malengo yake ya muda mfupi na ya
yanatengeneza sehemu kubwa ya utamaduni wetu kama Simba muda mrefu.
simenti.
Pamoja na Tanzania kuwa nchi ya pili kwa kuwa na ukubwa wa
Gawio soko la vifaa vya ujenzi Afrika Mashariki, uzalishaji wa simenti
Mwaka 2017 bodi ilitangaza na kulipa gawio la mwisho kwa mwaka unatarajiwa kuongezeka, na Tanga Cement PLC iko tayari
wa fedha 2016 ambalo ni kiTanzania shillingi ishirini na tano kwa hisa kunyakua fursa hizi za ukuaji wa soko katika ukanda. Tuna shauku
(Tsh 25) ambayo jumla yake ni kiTanzania shilingi bilioni moja nukta kubwa kufikia malengo ya juu ya pamoja kwa mwaka 2018
sita (Tsh 1.6 bilioni) (mwaka 2015 ilikuwa Tsh 25 kwa hisa ambapo tukishirikiana na wadau wetu wote.
jumla ni Kitanzania shilingi 1.6 bilioni). Jumla ya gawio lililotangazwa
na kulipwa kwa mwaka wa fedha wa 2016 lilikuwa kiTanzania shilingi
themanini kwa hisa (Tsh 80) ambayo ni kiTanzania shilingi bilioni tano
(Tsh 5 bilioni).
Kampuni (kundi) haikutangaza gawio la nusu mwaka kwa mwaka 2017 Advocate Lau Masha
na wala haitarajii kutangaza gawio la mwisho kwa wanahisa na hii Mwenyekiti wa Bodi
ni kutokana na utendaji wa kampuni kifedha. Bodi imeona ni busara
kutumia rasilimali ya fedha kwaajili ya shughuli za kiutendaji na kulipa
madeni.

TAARIFA YA MWAKA 2017

Building today’s Dreams for tomorrow’s Generations
Tanga Cement PLC 12
04

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 ANNUAL REPORT 2017

Audited results for the year ended

31 December 2017
Consolidated Statement of Profit or Loss
and Other Comprehensive Income Consolidated Statement of Cash Flows
for the year ended 31 December 2017 for the year ended 31 December 2017

Group Group Company Company

Group Group Company Company
Dec 2017 Dec 2016 Dec 2017 Dec 2016
Dec 2017 Dec 2016 Dec 2017 Dec 2016
Tzs’000 Tzs’000 Tzs’000 Tzs’000 TZS’000 TZS’000 TZS’000 TZS’000
`
Revenue 171 744 715 166 975 482 150 488 539 153 775 982 Cash generated from operating
Cost of sales (142 317 940) (112 553 046) (125 714 112) (101 865 441) activities
Gross profit 29,426 775 54,422,436 24,774 427 51,910 541 Operating (loss)/profit (10 986 492) 19 838 619 (12 670 517) 19 574 749
Depreciation 18 853 021 17 801 172 18 762 437 17 694 713
Selling and administrative expenses (20 394 054) (18 555 403) (17 509 962) (16 409 633) Impairment charges 646 089 293 771 646 089 293 771
Gain on disposal of investment - (380 174) - (3801 74)
Depreciation charge (18 853 021) (17 801 172) (18 762 437) (17 694 713)
(Gain)/loss on disposal of assets 575 661 (1 492 467) 582 014 (1 488 872)
Impairment charge (646 089) (293 771) (646 089) (293 771) Other non cash items 4 885 980 (191 198) 4 554 649 (247 860)
Operating (loss)/profit (10 466 466) 17 772 090 (12 144 061) 17 512 424 Cash generated from trading 13 974 259 35 869 723 11 874 672 35 446 327
Decrease in amount due from
Other income/expense (520,103) 2 066 529 (526 456) 2 062 325 employees’ share trust 16 700 53 440 16 700 534 40
Net finance costs (24 258 415) (14 185 713) (24 184 867) (13 950 824) De/(Increase) in inventories (7 369 175) 5 496 581 (7 499 079) 5 251 902
Net (loss) profit before taxation (35 244 907) 5 652 906 (36 855 384) 5 623 925 Increase in trade and other receivables (2 116 490) (7 871 181) (1 555 599) (6 450 464)
De/(increase) in VAT recoverable 2 982 205 7 524 730 2 992 795 7 513 872
Current income tax (982 989) 126 503 (110 672) 170 253 Decrease in trade and other payables (3 671 866) (19 852 447) (3 793 624) (21 166 933)
Deferred tax credit /(charge) 9 887 742 (1 517 925) 9 887 742 (1 517 925) Increase in restricted bank balances (160 929) - - -
Net (loss)/profit for the year (26 340 154) 4 261 484 (27 078 314) 4 276 253 Cash flow from operations 3 654 704 21 220 846 2 035 866 20 648 144
Exchange differences on Interest income received 43 881 83 059 43 881 83 059
translation of foreign operations (13 582) (64 235) - - Income tax paid (618 434) (656 832) - (358 183)
Total Comprehensive Income (26 353 736) 4 197 249 (27 078 314) 4 276 253 Net cash generated from operations 3 080 150 20 647 073 2 079 747 20 373 020
Attributable to:
Investing activities
Owners of the Parent (26 353 736) 4 197 249 (27 078 314) 4 276 253 Proceeds from sale of property,
Non-controlling interest - - - - plant and equipment 3 728 2 003 503 - 1 9 993 20
Total Comprehensive Income (26 353 736) 4 197 249 (27 078 314) 4 276 253 Purchase of property, plant and equipment (7 975431) (17 288 687) (7 734 979) (17 284 923)
Weighted average number of Proceeds from sales of investment in associate 651, 786 - 651,786 -
shares in issue (less treasury shares) 62 967 893 62 967 893 62 967 893 62 967 893
Net cash flow used in
Earnings per share (Tzs) (418) 68 (430) 68 investing activities (7 319 917) (15 285 184) (7 083 193) (15 285 603)
Dividends per share (Tzs) 25 80 25 80
Financing activities
Proceeds from borrowings 22 216 383 - 22 216 383 -
Consolidated Statement of Financial Position Interest expense paid (13 141 604) (17 522 122) (13 141 604) (17 522 122)
as at 31 December 2017 Loan repayment (11 883 494) (11 883 494)
Group Group Company Company Dividends paid (1 591 776) (4 992 277) (1 591 776) (4 992 277)
Dec 2017 Dec 2016 Dec 2017 Dec 2016
TZS’000 TZS’000 TZS’000 TZS’000 Net cash flows
used in financing activities (4 400 491) (22 514 399) (4 400 491) (22 514 399)
ASSETS Net decrease in cash
Non-current assets
and cash equivalents (8 640 258) (17 152 510) (9 403 937) (17 426 982)
Property, plant and equipment 361 906 745 373 366 218 359 990 184 371 599 649
Investment in subsidiary - - 1 746 976 1,746,976 Net foreign exchange difference 971 423 1 379 093 1,056,052 1 6 783 16
Equity investment 100 100 100 100
Cash and cash equivalents at 1 January 2 519 175 18 292 592 1 501 499 1 72 501 65
Financial asset - Interest rate cap 4 994 316 7 152 393 4 994 316 7 152 393
Cash and cash equivalents at
366,901,161 380,518,711 366,731,576 380,499,118 31 December (5 149 659) 2 519 175 (6 846 386) 1 501 499
Current assets
Due from employees’ share trust - - 843 782 1 506 571 Information to Members
Inventories 38 043 180 32 673 142 37 518 276 32 018 334 The Company Secretary would like to inform the Members that dividends can be directly
Trade and other receivables 16 307 757 15 568 106 15 695 543 15 185 452 transferred to their bank accounts.
VAT recoverable 6 512 432 9 494 637 6 477 059 9 469 854 Members can contact Dar es Salaam Stock Exchange PLC on +255 22 2123983/2128522,
Current income tax recoverable 2 303 416 2 557 299 2 129 325 2 129 325 Email: info@dse.co.tz for information on how to have the dividends deposited directly into
their bank accounts.
Cash and bank balances 7 464 405 9 503 431 5 606 749 8 485 755
70 631 190 69 796 615 68 270 734 68 795 291 Tanga Cement PLC
TOTAL ASSETS 437 532 351 450 315 326 435 002 310 449 294 409 PO Box 5053
Tanga
EQUITY AND LIABILITIES
Tanzania
Capital and Reserves info@simbacement.co.tz
Issued share capital 1 273 421 1,273,421 1,273,421 1,273,421
Translation reserve 9 187 22 769 - -
Treasury shares (843 782) (1 506 571) - -
Retained earnings 162 000 436 189 884 783 161 473 124 190 095 631
Equity attributable to owners
of the parent 162 439 262 189 674 402 162 746 545 191 369 052
Total equity 162 439 262 189 674 402 162 746 545 191 369 052
L Masha R Swart Q Ganijee,
Non-current Liabilities Chairperson Managing Director Company Secretary
Provision for site restoration 25 077 21 364 25 077 21 364
Deferred tax liability 6 869 709 16 757 451 6 869 709 16 757 451
24 May 2018
Term borrowings: Non-current portion 191,524,837 189 212 984 191,524,837 189 212 984
198,419,623 205 991 799 198,419,623 205 991 799
Current Liabilities
Term borrowings: Current portion 33,384,911 13 157 583 33,384,911 13 157 583

2017
Trade and other payables 30,835,419 34 507 286 27,998,095 31 791 719
Bank overdrafts 12 453 135 6 984 256 12 453 135 6 984 256
76,673,466 54 649 125 73,836,142 51 933 558 ANNUAL REPORT
TOTAL EQUITY AND LIABILITIES 437 532 351 450 315 326 435 002 310 449 294 409 Building today’s Dreams for tomorrow’s Generations

Simba Cement Annual(S)) Report 2017 - small.indd 8 8/17/18 4:12 PM

 TAARIFA YA MWAKA 2017

Taarifa zilizokaguliwa za mwaka ulioishia

31 Desemba 2017
Waraka wa Mapato unaotambulika Waraka wa Mtiririko wa Fedha
kwa mwaka ulioishia tarehe 31 Desemba 2017 kwa mwaka ulioishia tarehe 31 Desemba 2017

Kundi Kundi Kampuni Kampuni

Des 2017 Des 2016 Des 2017 Des 2016 Kundi Kundi Kampuni Kampuni
Tzs’000 Tzs’000 Tzs’000 Tzs’000 Des 2017 Des 2016 Des 2017 Des 2016
` Tzs’000 Tzs’000 Tzs’000 Tzs’000
Mapato 171 744 715 166 975 482 150 488 539 153 775 982 Faida taslimu kutokana na shughuli
Gharama za mauzo (142 317 940) (112 553 046) (125 714 112) (101 865 441) za biashara
Faida ghafi 29,426 775 54,422,436 24,774 427 51,910 541 Faida halisi ya shughuli za biashara (10 986 492) 19 838 619 (12 670 517) 19 574 749
Uchakavu 18 853 021 17 801 172 18 762 437 17 694 713
Gharama za mauzo na utawala (20 394 054) (18 555 403) (17 509 962) (16 409 633) Gharama za uharibifu 646 089 293 771 646 089 293 771
Uchakavu (18 853 021) (17 801 172) (18 762 437) (17 694 713) Faida/ Hasara ya mauzo
Mali iliyoharibika (646 089) (293 771) (646 089) (293 771) mitambo - (380 174) - (380 174)
Faida halisi ya shughuli za biashara (10 466 466) 17 772 090 (12 144 061) 17 512 424 Tengo la utunzaji eneo 575 661 (1 492 467) 582 014 (1 488 872)
Gharama zingine zisizo taslimu 4 885 980 (191 198) 4 554 649 (247 860)
Mapato Mengineyo (520,103) 2 066 529 (526 456) 2 062 325 Fedha taslimu kutokana na biashara 13 974 259 35 869 723 11 874 672 35 446 327
Gharama za Kifedha (24 258 415) (14 185 713) (24 184 867) (13 950 824) Kupungua kwa stahiki kutoka kwa mfuko
Faida halisi kabla ya kodi (35 244 907) 5 652 906 (36 855 384) 5 623 925 wa hisa wa wafanyakazi 16 700 53 440 16 700 53 440
(Ongezeko)/ punguzo la bidhaa (7 369 175) 5 496 581 (7 499 079) 5 251 902
Kodi (982 989) 126 503 (110 672) 170 253
(Ongezeko)/ punguzo kwa wadaiwa kibiashara (2 116 490) (7 871 181) (1 555 599) (6 450 464)
Kodi iliyoahirishwa (gharama)/malipo 9 887 742 (1 517 925) 9 887 742 (1 517 925)
(Ongezeko)/punguzo kodi ya ongezeko
Faida halisi kwa mwaka (26 340 154) 4 261 484 (27 078 314) 4 276 253
la thamani inayotegemewa kupatikana 2 982 205 7 524 730 2 992 795 7 513 872
Tofauti katika shuhuli za (Punguzo)/ Ongezeko la wadai kibiashara (3 671 866) (19 852 447) (3 793 624) (21 166 933)
ubadilishaji fedha za kigeni (13 582) (64 235) - - Ongezeko la fedha zilizoshikiliwa na benki (160 929) - - -
Jumla ya mapato halisi (26 353 736) 4 197 249 (27 078 314) 4 276 253 Medha kutoka uendeshaji 3 654 704 21 220 846 2 035 866 20 648 144

naidhinishwa kwa:
Mapato ya fedha 43 881 83 059 43 881 83 059
Wamiliki wa kampuni mama (26 353 736) 4 197 249 (27 078 314) 4 276 253
Kodi ya mapato iliyolipwa (618 434) (656 832) - (358 183)
Riba isiyodhibitika - - - -
Fedha taslimu inayotokana na uendeshaji 3 080 150 20 647 073 2 079 747 20 373 020
Jumla ya mapato halisi (26 353 736) 4 197 249 (27 078 314) 4 276 253
Shughuli za uwekezaji
Wastani wa idadi ya hisa 62 967 893 62 967 893 62 967 893 62 967 893 Mapato toka kwa uuzaji wa mali 3 728 2 003 503 - 1 999 320
Mapato kwa hisa (TSh) (418) 68 (430) 68 Ununuzi wa Mali za kudumu (7 975431) (17 288 687) (7 734 979) (17 284 923)
Magawio kwa hisa (Tsh) 25 80 25 80 Mapato yatokanayo na uuzaji na uwekezaji
shiriki 651, 786 - 651,786 -

Fedha taslimu zilizotumiwa katika

Waraka wa Hali ya Kifedha
shughuli za uwekezaji (7 319 917) (15 285 184) (7 083 193) (15 285 603)
kwa mwaka ulioishia tarehe 31 Desemba 2017
Kundi Kundi Kampuni Kampuni Shughuli za ugharimiaji
Des 2017 Des 2016 Des 2017 Des 2016
Tzs’000 Tzs’000 Tzs’000 Tzs’000 Fedha zitokanazo na mikopo 22 216 383 - 22 216 383 -
RASILIMALI Riba halisi iliyopokelewa (iliyolipwa) (13 141 604) (17 522 122) (13 141 604) (17 522 122)
Rasilimali za kudumu Malipo ya mkopo (11 883 494) (11 883 494)
Mali,mitambo na zana 361 906 745 373 366 218 359 990 184 371 599 649 Gawio la kawaida lililolipwa (1 591 776) (4 992 277) (1 591 776) (4 992 277)
Uwekezaji katika kundi la kampuni - - 1 746 976 1,746,976 Fedha taslimu iliyotumiwa katika
Uwekezaji kwa Washirika 100 100 100 100 shughuli za ugharamiaji (4 400 491) (22 514 399) (4 400 491) (22 514 399)
Mali za kifedha 4 994 316 7 152 393 4 994 316 7 152 393 (Punguzo)/ongezeko katika fedha
366,901,161 380,518,711 366,731,576 380,499,118 taslimu na fedha linganifu (8 640 258) (17 152 510) (9 403 937) (17 426 982)
Rasilimali za muda Tofauti halisi kutokana na ubadilishaji
Stahiki kutoka kwa mfuko wa fedha za kigeni 971 423 1 379 093 1,056,052 1 6 783 16
hisa wa wafanyakazi - - 843 782 1 506 571
Bidhaa 38 043 180 32 673 142 37 518 276 32 018 334 Fedha taslimu na fedha linganifu
Wadaiwa kibiashara na wengine 16 307 757 15 568 106 15 695 543 15 185 452 tarehe 1 Januari 2 519 175 18 292 592 1 501 499 17 250 165
Fedha taslimu na fedha linganifu
Kodi ya ongezeko la thamani 6 512 432 9 494 637 6 477 059 9 469 854
tarehe 31 Desemba (5 149 659) 2 519 175 (6 846 386) 1 501 499
Kodi ya mapato ya kampuni itakayorudishwa 2 303 416 2 557 299 2 129 325 2 129 325
Baki ya taslimu na benki 7 464 405 9 503 431 5 606 749 8 485 755
70 631 190 69 796 615 68 270 734 68 795 291 Taarifa Kwa Wanachama
JUMLA YA RASILIMALI 437 532 351 450 315 326 435 002 310 449 294 409 Katibu wa kampuni anapenda kuwafahamisha wanahisa kuwa magawio yao yatalipwa moja kwa
moja kwenye akaunti zao za benki.
HISA NA DHIMA
Mtaji na Akiba Wanahisa wanaweza kuwasiliana na Dar es Salaam Stock Exchange PLC kupitia namba
Mtaji wa hisa zilizotolewa 1 273 421 1,273,421 1,273,421 1,273,421 +255 22 2123983/2128522, barua pepe info@dse.co.tz kwa maelezo ya jinsi ya kupelekewa
magawio yao kwenye akaunti zao za benki.
Tafsiri ya akiba 9 187 22 769 - -
Hisa za hazina (843 782) (1 506 571) - - Tanga Cement PLC
Mapato yaliyobakishwa 162 000 436 189 884 783 161 473 124 190 095 631 PO Box 5053
Hisa inaidhinishwa kwa wamiliki Tanga
wa kampuni mama 162 439 262 189 674 402 162 746 545 191 369 052 Tanzania
info@simbacement.co.tz
Jumla ya hisa zisizo na riba 162 439 262 189 674 402 162 746 545 191 369 052
Dhima za kudumu
Tengo kwa ajili ya uboreshaji wa
eneo la machimbo 25 077 21 364 25 077 21 364
Tengo la kodi ilioahirishwa 6 869 709 16 757 451 6 869 709 16 757 451
Mkopo wa muda mrefu 191,524,837 189 212 984 191,524,837 189 212 984
198,419,623 205 991 799 198,419,623 205 991 799
DHIMA ZA MUDA L Masha R Swart Q Ganijee,
Mkopo wa muda mfupi 33,384,911 13 157 583 33,384,911 13 157 583 Mwenyekiti Mkurugenzi Mtendaji Katibu wa Kampuni
Madeni ya biashara na mengineyo 30,835,419 34 507 286 27,998,095 31 791 719
24 Mei 2018
Ovadrafti za benki 12 453 135 6 984 256 12 453 135 6 984 256
76,673,466 54 649 125 73,836,142 51 933 558 Tanga Cement PLC 06
JUMLA YA HISA NA DHIMA 437 532 351 450 315 326 435 002 310 449 294 409

Simba Cement Annual(S)) Report 2017 - small.indd 9 8/17/18 4:12 PM

 Managing Director’s Report

Reinhardt Swart
Managing Director

Sales revenue improved by three percent (3%) year on year

to Tanzanian shillings one hundred seventy two billion
(TZS 172bn) in FY2017 compared to Tanzanian shillings one
hundred, sixty seven billion (TZS 167bn) in FY2016 on the back
of a healthy growth in sales volumes. The competitive market
pricing significantly impacted on the reduction in Gross Profit
by forty six percent (46%) compared
to prior year.

07 Tanga Cement PLC ANNUAL REPORT 2017

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 Managing Director’s Report

The 2017 financial year was testament to the challenging general Ensuring Sustainable Growth
economic and business environment. Against this backdrop we made We are proactively adapting our business strategies to the
good progress by increasing cement production output volumes by fluid geopolitical and macroeconomic market dynamics while
ten percent (10%) over the prior year optimising our new integrated remaining cognisant of our core business and our responsibility to
production line. However, the significant pricing pressure experienced all our stakeholders. Our ongoing cost optimisation and efficiency
in a double oversupplied market weighed down on profitability. Our improvement programmes in production and operations are
resilient business model and cost controls ensured that we remained yielding exciting results while retaining our brand equity of superior
competitive while a number of cement players were forced to shut quality performance cement. The production capacity expansion
down for extended periods as a result of the challenges presented. investment TK2 has positioned Tanga Cement to meet the
anticipated increase in future cement demand in Tanzania.
Our financial performance reflected the impact of significant
competition in the market. Unpredictable and erratic price behaviour
Our agreement with Tanzania Railway Limited (TRL) allows us access
by other major market players was a major concern for lowering
to more dedicated wagons for the Company as well as sole rental
consumer expectations to unrealistic and unsustainable pricing levels.
agreements of rail depots along the strategic distribution lines.
Our continued Quality and Safety performance excellence of the highest This advantage reduces our storage and transportation costs while
international standards contributed to our competitive advantage for enhancing rail transport and distribution capacity in Tanzania.
sustainability in all areas of our business.
Outlook
Performance We continue to seek out new opportunities and improve on our
Sales revenue improved by three percent (3%) year on year to Tanzanian production efficiency, product offering and distribution solutions to
shillings one hundred seventy two billion (TZS 172bn) in FY2017 supply our products to upcoming infrastructure projects.
compared to Tanzanian shillings one hundred sixty seven billion (TZS
167bn) in FY2016 on the back of a healthy growth in sales volumes. 2018 is poised to provide exciting opportunities from geopolitical
The competitive market pricing significantly impacted on the reduction developments and increased competition.
in Gross Profit by forty sixy percent (46%) compared to the prior year.
Despite the initial delay by government in the roll-out of these
The company registered a decrease in Earnings Before Interest Tax
projects, we remain optimistic that they will pick up in the near
Depreciation and Amortisation (EBITDA) to Tanzanian shillings nine
future as indicated by government.
billion (TZS 9bn) in FY2017 from Tanzanian shillings thirty eight billion
(TZS 38bn) in 2016. Government approved large infrastructure projects such as the
oil export pipeline from Uganda through Tanga in Tanzania, the
The new integrated manufacturing line and kiln, TK2, which increased
Standard Gauge Railway (SGR) and the Dar es Salaam and Tanga
our clinker and cement production capacity to 1.25mt per annum,
port upgrades are gaining momentum and is anticipated to boost
continued to perform well by making Tanga Cement self-sufficient
demand for cement in Tanzania over the next five years.
in clinker in the long term. The company ramped up production
throughout the year and generated additional revenue from sale of
excess clinker.
We further optimised our transport logistics and rail utilisation with
direct access to the rail line into our packing and loading bays.
Reinhardt Swart
Depreciation on the new capital investment, interest on loan funding Managing Director
and foreign were the main contributors to the net loss after tax of
Tanzanian shillings twenty six billion (TZS
( 26bn) for 2017.

TAARIFA YA MWAKA 2017

Building today’s Dreams for tomorrow’s Generations
Tanga Cement PLC 08
12

Simba Cement Annual(S)) Report 2017 - small.indd 11 8/17/18 4:12 PM

 Ripoti ya
Mkurugenzi Mtendaji
Mwaka wa fedha wa 2017 ulikuwa ni wenye changamoto na
mazingira magumu ya kiuchumi na kibiashara kwa ujumla. Licha
ya changamoto hizi, tulifanikiwa kuongeza uzalishaji wa simenti
kwa asilimia kumi (10%) katika kipindi hiki na kutumia kwa
ukamilifu tanuru yetu mpya.
Hata hivyo, shinikizo kubwa lililotokana na mabadiliko ya bei
katika soko ambalo lina kiwango cha simenti mara mbili zaidi
ya kiwango kinachohitajika, vilichangia kushuka kwa faida.
Kutokana na mfumo wetu wa udhibiti wa gharama tuliweza
kuendelea pamoja na ushindani mkubwa uliosababisha baadhi ya
wazalishaji kusimamisha uzalishaji kwa kipindi kirefu kutokana na
changamoto hizo.
Utendaji wetu kifedha umeathiriwa na matokeo ya ushindani
mkubwa sokoni. Mabadiliko ya bei ya ghafla yasiyotarajiwa
yaliyofanywa na wazalishaji wakubwa yalikuwa kichocheo
kikubwa ambapo wateja walikuwa na matarajio yasiyo ya kweli
kutokana na viwango vya bei visivyo na uhakika.
Utendaji wetu katika ubora na usalama wa viwango vya juu vya
kimataifa, ulichangia kwa kiasi kikubwa katika maeneo yetu yote
ya kibiashara kuwa ya faida endelevu.
Utendaji
Mapato kutokana na mauzo yaliongezeka kwa asilimia tatu (3%)
mwaka hadi mwaka na kuwa Shilingi za kiTanzania bilioni mia
moja sabini na mbili (Tsh 172 bilioni) kwa mwaka wa fedha 2017
ikilinganishwa na Shilingi za kiTanzania bilioni mia moja sitini na
saba (Tsh 167 bilioni) katika mwaka wa fedha wa 2016 kutokana
na ukuaji bora wa mapato ya mauzo. Bei ya ushindani sokoni
iliathiri na kushusha faida ghafi kwa asilimia arobaini na sita (46%)
ya mwaka hadi mwaka. Kampuni ilirekodi kushuka kwa mapato
kabla ya kodi, uchakavu na mapungufu na kuwa Shilingi za
kiTanzania bilioni tisa (Tsh 9 bilioni) katika mwaka wa fedha 2017
toka shilingi za kiTanzania bilioni thelathini na nane (Tsh 38 bilioni)
kwa mwaka 2016.
Mtambo wetu mpya ulio kamili wenye tanuru ya kwanza, na
tanuru ya pili (TK2), ambao umeongeza kiwango cha uzalishaji
wetu wa klinka na simenti mpaka kufikia tani million 1.25 kwa
mwaka, uliendelea kufanyakazi vizuri na kuifanya Tanga Cement
PLC kujitosheleza kwa mahitaji ya klinka kwa muda mrefu.
Kampuni iliongeza uzalishaji katika kipindi chote cha mwaka na
kuweza kupata mapato ya ziada kwa kuuza klinka ya ziada.
Tuliboresha zaidi mfumo wetu wa usafiri na matumizi ya reli
ambayo hufika moja kwa moja mpaka kwenye eneo letu la
kufungashia na kupakilia.
Uchakavu kwenye mtaji wetu wa uwekezaji na ulipaji riba kwenye
mkopo wa kigeni, vilichangia kwa kiasi kikubwa na kuleta hasara
ya shilingi za kiTanzania bilioni ishirini na sita (Tsh 26 bilioni) kwa
mwaka 2017.
Kuhakikisha Ukuaji Endelevu
Tunatekeleza kikamilifu mikakati yetu ya kibiashara kufuatana na
mienendo ya mabadiliko ya soko na ya kisiasa na kiuchumi huku
tukiendelea kuhusisha biashara yetu na wajibu wetu kwa wadau
wetu wote.
09 Tanga Cement PLC
Simba Cement Annual(S)) Report 2017 - small.indd 12
Mapato kutokana na mauzo
yaliongezeka kwa asilimia tatu
(3%) mwaka hadi mwaka na
kuwa Shilingi za kiTanzania bilioni
mia moja sabini na mbili (Tsh 172
bilioni) kwa mwaka wa fedha
2017 ikilinganishwa na Shilingi
za kiTanzania bilioni mia moja
sitini na saba (Tsh 167 bilioni)
katika mwaka wa fedha wa 2016
kutokana na ukuaji bora wa
mapato ya mauzo.
Mpango wetu wa upunguzaji gharama na kuboresha utendaji kwenye
uzalishaji unatuletea matokeo tuliyotarajia huku tukiendelea kulinda
ubora wa chapa yetu kwa simenti yenye ubora wa uhakika na wenye
matokeo mazuri kiutendaji.
Uwekezaji kwenye tanuru ya pili (TK2) ili kuongeza uzalishaji,
umeiwezesha Tanga Cement PLC kufikia matarajio ya ongezeko la
mahitaji ya simenti ya Tanzania hapo baadaye.
Makubaliano yetu na Tanzania Railway Limited (TRL) yanatuwezesha
kupata mabehewa maalum na pia mkataba wa kipekee wa ukodishaji
wa maghala ya kampuni ya reli ambayo yapo maeneo ya kimkakati
kwaajili ya usambazaji. Faida hii hupunguza gharama za uhifadhi na
usafirishaji huku ikiboresha usafirishaji na usambazaji kwa kutumia reli
nchini Tanzania.
Mtazamo wa Mbele
Tunaendelea kuangalia fursa na ubunifu mpya kwenye uzalishaji wa
kiufanisi, upatikanaji wa bidhaa na ufumbuzi katika usambazaji wa
bidhaa zetu katika miradi ijayo ya miundombinu.
Mwaka 2018 unatarajiwa kuwa utatoa fursa za kusisimua kutokana na
maendeleo ya kisiasa na ongezeko la ushindani.
Pamoja na ucheleweshwaji wa utolewaji wa miradi ya Serikali, bado
tuna matumaini kwamba muda mfupi ujao Serikali itatekeleza miradi
hii kama ilivyoelekeza.
Serikali iliidhinisha miradi mikubwa ya miundombinu kama vile bomba
la usafirishaji mafuta kutoka Uganda kupitia Tanga, Tanzania, Reli ya
Kiwango (SGR) na uboreshaji wa bandari za Dar es Salaam na Tanga
ambavyo vinashika kasi, na miradi hii inatarajiwa kuongeza kasi ya
mahitaji ya simenti ndani ya miaka mitano ijayo nchini Tanzania.
Reinhardt Swart
Mkurugenzi Mtendaji
ANNUAL REPORT 2017
Building today’s Dreams for tomorrow’s Generations
8/17/18 4:12 PM
 TAARIFA YA MWAKA 2017
Building today’s Dreams for tomorrow’s Generations
Tanga Cement PLC 12

Simba Cement Annual(S)) Report 2017 - small.indd 13 8/17/18 4:12 PM

 REGISTERED OFFICE AND TAX ADVISORS
PRINCIPAL PLACE OF BUSINESS PricewaterhouseCoopers
Tanga Cement Public Limited Company 369 Toure Drive, Oysterbay
Pongwe Factory Area P O Box 45
P O Box 5053 Dar es Salaam
Tanga, Tanzania
BANKERS AND FINANCIAL INSTITUTIONS
Tel: +255 27 2644500/1/2
National Bank of Commerce Limited
Mob: +255 746 293 330
P O Box 5031
Fax: +255 2646148/425
Tanga, Tanzania
Website: www.simbacement.co.tz
Email:info@simbacement.co.tz CRDB Bank Plc
Dar es Salaam Office P O Box 1180
Rooftop, Coco Plaza, Toure Drive Tanga, Tanzania
P O Box 78478
Dar es Salaam, Tanzania Citibank Tanzania Limited
Tel: +255 22 2602778-9/2602784 P O Box 71625
Mob: +255 746 293 329 Dar es Salaam, Tanzania
Fax: +255 22 2602785 Standard Chartered Bank Tanzania Limited
COMPANY SECRETARY P O Box 9011
Mr Quresh Ganijee Dar es Salaam, Tanzania
Tanga Cement Public Limited Company
Stanbic Bank Tanzania Limited
Pongwe Factory Area
P O Box 72647
P O Box 5053
Dar es Salaam, Tanzania
Tanga, Tanzania

AUDITORS First National Bank

Ernst & Young P O Box 72290
4th Floor, Tanhouse Tower Dar es Salaam, Tanzania
Plot 34/1-Ursino South
New Bagamoyo rd Public Investment Corporation (SOC) Limited (PIC South Africa)
P O Box 2475 in its capacity as;
Dar es Salaam, Tanzania Investment manager for the Government Employees Pension
Fund (GEPF South Africa)
LEGAL ADVISORS
Menlyn Maine Central Square, Corner Aramist Avenue
ENS Africa
& Corobay Avenue
6th Floor, International House
Waterkloof Glen Extension 2
Cnr of Shaaban Robert Street & Garden Avenue
Private Bag X187
P O Box 7495
Pretoria 001
Dar es Salaam
Republic of South Africa

11 Tanga Cement PLC ANNUAL REPORT 2017

Building today’s Dreams for tomorrow’s Generations

Simba Cement Annual(S)) Report 2017 - small.indd 2 8/17/18 4:12 PM

 Tanga Cement Public Limited Company

I/ We.............................................................................................................................. of P O Box .................................................................................................... being a

shareholder/ shareholders of Tanga Cement PLC hereby appoint ..................................................................................................................................... of

P O Box .................................................................................................................. as my/ Proxy to vote for me/ on our behalf at the Annual General Meeting

of the Company to be held on Friday 24 August 2018, at the Double Tree Hilton, Dar Es Salaam, or at any adjournment thereof.

Signed and witnessed on this day of ................................................................................. 2018

.................................................................................
(Signature/s)

TAARIFA YA MWAKA
Building today’s Dreams for tomorrow’s Generations
2017 Tanga Cement PLC 12

Simba Cement Annual(S)) Report 2017 - small.indd 3 8/17/18 4:12 PM

 Tanga Cement Public Limited Company

Mimi/Sisi.............................................................................................................................. wa S L P ...............................................................................................................

Nikiwa mwanahisa/wanahisa wa Tanga Cement PLC, nachagua ..................................................................................................................................... wa

S L P .................................................................................................................. kama mwakilishi wangu/wawakilishi/wetu kupiga kura kwa ajili yangu/yetu

na kwa niaba yangu/ yetu katika Mkutano Mkuu wa Mwaka wa Kampuni utakao fanyika siku ya Ijumaa 24 Agosti 2018, Hoteli ya

Double Tree Hilton, Dar Es Salaam, au mahali popote patakapo amuliwa.

Kama shahidi saini yangu/zetu leo Tarehe ................................................................................. 2018

.................................................................................
(Saini)

13 Tanga Cement PLC ANNUAL REPORT

Building today’s Dreams for tomorrow’s Generations
2017
Simba Cement Annual(S)) Report 2017 - small.indd 4 8/17/18 4:12 PM
 Notice to Members

TANGA CEMENT PUBLIC LIMITED COMPANY

(Incorporated in the United Republic of Tanzania)
Notice is hereby given that the twenty fourth Annual General Meeting of Shareholders of Tanga Cement Public
Limited Company will be held at the DoubleTree by Hilton Oysterbay in Dar es Salaam on Friday 24 August 2018
at 10H00, for the following purposes:

1. Notice of Meeting
Notice convening the meeting to be taken as read.

2. Approval of Minutes
To approve and sign the minutes of the twenty third Annual General Meeting held
on 5 May 2017.

3. Financial Statements and Directors’ Reports

To review and adopt the Financial Statements and Directors’ report for the year ended
31 December 2017.

4. Dividend for the year ended 31 December 2017

Shareholders to consider the proposal from board not to declare a final dividend for the financial year ended
31 December 2017.

5. Appointment of Directors
To appoint Directors to the Board.

6. Approval of Directors Remuneration

To approve the directors remuneration for the 2018 financial year.

7. Appointment of External Auditors

To approve the appointment of the External Auditors for the 2018 financial year.

8. General
Any other business.

Any member entitled to attend and vote at the meeting is entitled to appoint a proxy or proxies to attend and
vote on their behalf. If a member is an organisation then they must submit proxy forms and a Board resolution
to approve the appointment of the proxy. These proxies are to reach the registered office of the Company not
less than 48 hours before the time of the meeting. Members and holders of proxies are required to bring with
them acknowledgements of receipt of delivery of proxy forms, copies of proxy forms and identification card for
registration purposes.

By order of the Board.

Quresh Ganijee
Company Secretary
24 July 2018

TAARIFA YA MWAKA 2017

Building today’s Dreams for tomorrow’s Generations
Tanga Cement PLC 14

Simba Cement Annual(S)) Report 2017 - small.indd 5 8/17/18 4:12 PM

 Taarifa Kwa Wanachama

TANGA CEMENT PUBLIC LIMITED COMPANY

(Imeshirikishwa katika Jamhuri ya Muungano wa Tanzania)
Taarifa inatolewa kwa wanahisa kwamba Mkutano Mkuu wa Mwaka wa ishirini na nne wa wanahisa wa
Kampuni ya Tanga Cement PLC utakaofanyika Hoteli ya Double Tree Hilton, Dar es Salaam, siku ya Ijumaa
tarehe 24 Agosti 2018 kuanzia saa nne (4) asubuhi kwa madhumuni yafuatayo:

1. Taarifa ya Mkutano
Taarifa ya kuitisha mkutano ichukuliwe kama inavyosomeka.

2. Kupitisha Kumbukumbu
Kuidhinisha na kusaini kumbukumbu za Mkutano Mkuu wa Mwaka wa ishirini na mbili uliofanyika
tarehe 5 Mei 2017.

3. Taarifa za Fedha na Ripoti za Wakurugenzi

Kupitia na kupitisha Taarifa za Fedha na ripoti za Wakurugenzi kwa mwaka ulioishia tarehe
31 Desemba 2017.

4. Gawio kwa mwaka ulioishia tarehe 31 Disemba 2017

Kuidhinisha tamko la gawio kwa mwaka ulioishia tarehe 31 Desemba 2017.

5. Uteuzi wa Wakurugenzi
Kuteua Wakurugenzi wa Bodi.

6. Kuidhinisha Mapato ya Wakurugenzi

Kuidhinisha mapato ya Wakurugenzi kwa mwaka wa fedha 2018.

7. Uteuzi wa Wakaguzi wa Nje

Kuidhinisha uteuzi wa Wakaguzi wa Nje kwa mwaka wa fedha 2018.

8. Majumuisho
Mengineyo.

Mwanachama yeyote anayestahili kuhudhuria na kupiga kura kwenye mkutano ana haki ya kuchagua
mwakilishi au wawakilishi na kupiga kura kwa niaba yake. Kama mwanachama ni shirika basi mwakilishi
anatakiwa fomu za uwakilishi pamoja na maamuzi ya Bodi ya kumteua mwakilishi huyo. Fomu hizo
zifike katika ofisi iliyosajiliwa ya Kampuni si chini ya ya masaa 48 kabla ya muda wa mkutano kuanza.
Wanachama au wawakilishi wanatakiwa kuja na risiti ya amana na kitambulisho kwaajili ya usajili.

Kwa agizo la Bodi.

Quresh Ganijee
Katibu wa Kampuni
24 Julai 2018

15 Tanga Cement PLC ANNUAL REPORT 2017

Building today’s Dreams for tomorrow’s Generations

Simba Cement Annual(S)) Report 2017 - small.indd 6 8/17/18 4:12 PM

Simba Cement Annual(S)) Report 2017 - small.indd 7 8/17/18 4:12 PM
 TANGA CEMENT PUBLIC LIMITED COMPANY
Registered office
Korogwe Road, Pongwe Factory Area
P O Box 5053, Tanga, Tanzania
Tel: +255 27 2644500-3/2610604
Mob: +255 746 293325/ 26
Fax: +255 27 2646148
Website: www.simbacement.co.tz |
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Dar es Salaam office:
Rooftop, Coco Plaza, 254 Toure Drive
P O Box 78478, Dar es Salaam, Tanzania
Tel: +255 22 2602784/ 2602778/ 79
Mob: +255 746 293328/ 746 293330
Fax: +255 22 2602785
Email: info@simbacement.co.tz
8/17/18 4:12 PM