UAC OF NIGERIA PLC

UAC OF NIGERIA PLC
Important Notice
Contents
1
Overview of the business in 2012
Larry Ettah
GMD/CEO
2
performance review (FY 2012 & Q1 2013)
Abdul Bello
CFO
2
Update on strategic thrusts
Joe Dada
ED Corp. Services
outlook
Larry Ettah
GMD/CEO
3
4
3
Contents
1
Overview of the business in 2012
Larry Ettah
GMD/CEO
2
performance review (FY 2012 & Q12013)
Abdul Bello
CFO
2
Update of strategic thrusts
Joe Dada
ED Corp. Services
outlook
Larry Ettah
GMD/CEO
3
4
3
MISSION
VISION
To be number one in our
To grow our top-line at twice the
rate of GDP growth in Nigeria at
chosen markets, providing
a blended EBIT profitability of
exceptional value to our
15%
customers
OUR VALUES
1. Our Customers are our Focus
2. We act with Respect for the Individual
3. We act with Integrity in everything we do
4. Team spirit will give us good success
5. Innovation for business sustenance and value creation
6. We are Open and Communicate with our people
DESIRED OUTCOME
Adding value to the lives of our stakeholders
Operating Environment Review for 2012
Business Review – UACN Plc
UAC has defined its holding company structure as a model
consisting of a Corporate Centre overseeing a portfolio of interests
across 4 key verticals
UAC
Food & Beverages
Real Estate
Paints
Logistics
Others
Grand Cereals Ltd.
 Grand Oil, Vital Feeds,
Grand Maize Flour, Grand
Maize Grits, Rich Fill
UPDC Plc
CAP Plc
MDS Logistics Plc

Property
Development
UNICO CPFA Ltd.
 In-house
Pension
UAC Foods Ltd.
 Gala, Funtime Cake,
Funtime Coconut Chips,
Snaps Puffed Maize, Delite
Fruit Juice, SWAN Water

Facility
Management
UAC Restaurants Ltd
(168 Outlets)
 Mr Bigg’s
Warm Spring Waters Nig. Ltd.
 Gossy Water

Property Sales

Property Lease


Dulux Paints
Caplux Paints

Warehousing

Haulage

Redistribution
UAC Registrars
Ltd.
(Divesting
Interest)
GM Nig. Ltd.
(Winding Down)
FY 2012 Highlights
Spin-off of MDS Logistics and UAC Restaurants
Operations Review
UAC FOODS LTD
 Sales
and
margin
improvement despite dip
in Q1 2012
 Operational reviews of
dairies
segment
resulting in improved
margins
 Tiger
Brands
partnership impacting:
Asset
Care
Management
(Production & Yield),
Procurement Savings,
Knowledge
Transfer,
Marketing & Distribution
GRAND CEREALS LTD
UAC RESTAURANTS LTD
 Turnover of N28.94 billion
up 21% (N23.86 billion
Dec 2011)
 Rights Issue fully
subscribed
 Installation of 6,000 MT
per month Poultry Feed
plant in Onitsha
 Expansion of capacity of
Fish Feed line
 Loss exposure reduced
significantly in 2012
following successful
restructuring and review
of operations
 Improved compliance
following regular
franchise audits
 Revamp of over 100
restaurants, creating new
look and feel
Operations Review
UPDC PLC
MDS LOGISTICS PLC
 Turnover of N12.04 billion,
up 78% (N6.78 billion Dec
2011)
 Completed Grandville and
Metro Gardens estates
(both in Lagos)
 Improvement in
occupancy levels and
revenues at UPDC Hotel
(turnover up 10%)
 Joint Venture opportunities
being exploited
 Turnover of N4.04 billion up
20% (N3.37 billion Dec
2011)
 Significant growth in off-site
inventory management
services
 Restructuring of Capacity
Holding Framework
 Strategic equity investor
discussions progressing
satisfactorily
CAP PLC
 Turnover of N5.23 billion
up 21% (N4.31 billion Dec
2011)
 Opened 4 Dulux Colour
Centres and 8 Colour
Shops
 Launched Dulux Ecosure
Products
 Unveiled “Tea Dance” as
Dulux Colour of the Year
2012
Contents
1
Overview of the business in 2012
Larry Ettah
GMD/CEO
2
performance review (FY 2012 & Q1 2013)
Abdul Bello
CFO
2
Update on strategic thrusts
Joe Dada
ED Corp. Services
outlook
Larry Ettah
GMD/CEO
3
4
3
2
3
ANALYSIS OF
FINANCIALS
Important Notice
Review of Financial Performance
Turnover recorded 17% growth despite adoption of full franchis
Summary of Financial Performance (YoY)
Summary of Financial Performance
Review of Financial Performance
(N’Billion)
69.63
2011
2012
59.64
19.05
15.86
7.72
turnover
gross profit
11.53
operating profit
6.99
10.75
PBT
3.41
7.1
PAT
Analysis of Margins…
Gross Margin
27%
EBIT Margin
27%
13%
2011
2012
2012
17%
2013
Comments
Gross Margin sustained at 27% despite increases in input costs in key categories
Improving Returns…
ROE
ROA
12%
6%
2011
6%
3%
2012
2011
2012
ROE and ROA grew on the back of a robust performance over the last 12
months
Review of Financial Position
Non-current assets up due to increase in UPDC investment prop
Summary of Financial Position
Summary of Cash flows
Capital Structure
Total Debt (N’Billion)
Total Equity (N’Billion)
33.89
30.27
2011
2012
57.07
2011
60.95
2012
Total Debt reduces as a result of reduced leverage in Grand Cereals following su
Segmental Analysis - Turnover
FY 2012
FY 2011
The Food & Beverage, Real Estate, Logistics and Paints segments contr
Segment Analysis – PBT
FY 2012
FY 2011
Others; 2%
Others; 3%
Real Estate; 27%
Real Estate; 30%
Food & Beverages; 41%
Food & Beverages; 50%
Logistics
5%
Logistics; 11%
Paints; 15%
Paints; 15%
The Food & Beverage, Real Estate, Paints and Logistics segments
contributed 97% of Group PBT for 2012
Performance of Key Subsidiaries
UAC Foods (N’Billion)
14.68
12.56
Grand Cereals (N’Billion)
2011
2012
28.94
2011
2012
23.87
Margin pressures from
grains prices, haulage
& new factory take-off
costs
1.82
1.59
Turnover
PBT
Turnover
UPDC (N’Billion)
12.04
3.14
2.42
PBT
CAP (N’Billion)
2011
5.23
2012
2011
2012
4.31
6.78
2.4
Turnover
1.36
2.45
PBT
Turnover
1.66
PBT
Margins by Subsidiaries
47%
37%
42%
28%
27%
33%
28%
16%
CAP
11%
UAC Foods
Gross Margins
UPDC
CAP
11%
UAC Foods
EBIT Margins
UPDC
CAPEX (N’Million)
3130
635
138
CAP
•
•
UAC Foods
466
185
UPDC
Grand Cereal Capex comprises installation of new plant in Onitsha
and expansion of Fish Feed Plant in Jos.
In addition, UPDC expenditure on inventory builds was N9.7 billion
2
3
Q1 2013 FINANCIAL
HIGHLIGHTS
Summary of Financial Performance
Summary of Financial Position
Summary of Cash Flows
Capital Structure
Total Debt (N’Billion)
Total Equity (N’Billion)
39.62
60.6
61.92
2013
2012
2013
30.27
2012
Total Debt up N9.3 Billion due to increased financing activity in Grand
Cereals (Debt/Equity ratio 0.5x vs. 0.64x). UPDC REIT proceeds to curtail
this.
Improving Returns…
ROE (Annualized)
ROA (Annualized)
8%
6%
2012
6%
4%
2013
2012
2013
ROE and ROA record improvements due to growth in profitability over the
review period
Margins by Subsidiaries
31%
PBT margins impacted by interest
burden in Grand Cereals and UPDC
29%
24%
23%
21%
11%
11%
14%
8%
4%
CAP
UAC Foods
EBIT Margins
UPDC
CAP
UAC Foods
PBT Margins
UPDC
2
3
NEW INITIATIVES
SAP ERP IMPLEMENTATION
Contents
1
Overview of the business in 2012
Larry Ettah
GMD/CEO
2
performance review (FY 2012 & Q1 2013)
Abdul Bello
CFO
2
Update on strategic thrusts
Joe Dada
ED Corp. Services
outlook
Larry Ettah
GMD/CEO
3
4
3
Acquisition of Livestock Feeds Plc
Transaction consummated via Secondary Market trades (11%) and Primary Market Offer (40%)
M&A Update
Grand Cereals’ Rights Issue of N3 Billion fully subscribed; Debt exposure reduced
Contents
1
Overview of the business in 2012
Larry Ettah
GMD/CEO
2
performance review (FY 2012 & Q1 2013)
Abdul Bello
CFO
2
Update on strategic thrusts
Joe Dada
ED Corp. Services
outlook
Larry Ettah
GMD/CEO
3
4
3
2013 Forecasts
FY 2013 FORECAST
(as submitted to the NSE)
• Turnover – N81.9 Billion
• PBT
– N12.2 Billion
• PAT
– N8.6 Billion
2013 Key Priorities
Conclude on-going M&A activities by Q2
THANK
YOU!