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Business Highlights J. Ayo Ajayi, Managing Director/CEO May 2005.

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Presentation on theme: "Business Highlights J. Ayo Ajayi, Managing Director/CEO May 2005."— Presentation transcript:

1 Business Highlights J. Ayo Ajayi, Managing Director/CEO May 2005

2

3 Outline Financials Storm in the marketplace Facts behind the figures Innovation and Change Winning With People Digging new wells – the future

4 Group Performance Turn-Around

5 1999 (Nm) 2000 (Nm) 2001 (Nm) 2002 (Nm) 2003 (Nm) Sales to third parties8,4078,47813,23817,51920,844 Profit from Operations(578) ,4601,548 Exceptional items , ,422 Profit after tax141061,0071,1662,185 Earnings per share (Kobo) Dividend Per Share (Kobo)

6 1999 (Nm) 2000 (Nm) 2001 (Nm) 2002 (Nm) 2003 (Nm) Capital Expenditure9961,1793,1213,9662,481 Shareholders Funds4,3204,5075,3656,4297,920 Net Current (Liabilities)/Assets(1,053)(1,630)(1,822)(3,642)(2,674) Group Performance Turn-Around 1999 (Nm) 2000 (Nm) 2001 (Nm) 2002 (Nm) 2003 (Nm) 2004 (Nm) 2005 (Nm) 2006 (Nm) Capex 9961,1793,1213,9662,4811,7253,2503,000 Net Assets 4,3204,5075,3656,4297,92011,15013,32915,152 Net Current (Liabilities/ Assets) (1,053)(1,630)(1,822)(3,642)(2,674)

7 2004 Performance % Growth Sales to third parties25,11620, Profit from Operations1,9021, Exceptional items5171,422(51) Profit after tax/M.I.1,5702,185(28) Earnings per share (Kobo) - Adjusted (43) Dividend Per Share (Kobo) - Adjusted Turnover including franchises (2003 = N21,041; 2004 = N26,002) Reduction in profits from Disposals (divestment program) EPS – Rights Issue expands share base

8 2004 Performance % Growth Capital Expenditure 1,7252,481(30.4) Shareholders Funds 11,1507,92041 Net Current (Liabilities)/Assets 840(2,674)

9 Dividend History

10 Share Price History (Year End)

11 Storm in the Marketplace … Increasing cost of operations – power, fuel, raw materials High inflation – still double digits at 17.5% average GSM weakening demand in other sectors Poor road infrastructures High cost of funds – re-bank consolidation

12 Storm in the Marketplace … Strikes occasioned by high fuel prices Dearth of good and committed people Still poor image of Nigeria to attract FDIs … there are still unmet gaps and opportunities to exploit!

13 Facts Behind the Figures Strategies … Growing existing businesses (opportunities exist!) -Mr. Biggs restaurants–122 (vs 97 end 2003) -production facility expansion – Ice cream, Feeds -customer focus/market knowledge -improving product availability

14 Facts Behind the Figures … Strategies Driving operational efficiencies -supply chain -distribution/logistics -improving processes/quality -new maintenance culture

15 Rights Issue -reducing the debt burden by N1.7billion -preparing for real growth More Cash business - franchising – Mr. Biggs, Innscor brands - debt collection Facts Behind the Figures

16 Winning With People … Attracting good people and retaining them is key success factor -improved corporate performance -competitive remuneration -performance-driven culture -retention strategies – career path, training & development, welfare

17 Digging new wells … creating the future! Strategies … 1.Focused diversification in 2 or 3 core areas (Vision & Mission-driven) -Food and food retail -Logistics

18 -Expanding QSRs portfolio to increase customer base – Biggs, Menu Masters -Manufacturing upgrade – snacks, ice cream -Broadening third party logistics – MDS Digging new wells … creating the future!

19 Digging new wells … creating the future! Strategies contd. 2.Consolidate market shares in existing business 3.Supply Chain Excellence

20 N4.3billion Proceeds ….. Rights Issue Nm Fast Food (Restaurants (Mr. Biggs + Innscor Brands)1,780 Expansion of MDS 540 Upgrade of IT & Financial Systems and Controls 300 Debt Reduction1,720

21 2005 & 2006 Forecast Capital Expenditure 3,2503,000 Shareholders Funds 13,32915,152 Net Current (Liabilities)/Assets

22 2005 & 2006 Forecast Sales to third parties 30,57937,000 Profit from Operations 2,4053,006 Exceptional items Profit after tax 1,8112,200 Earnings per share (Kobo) Dividend Per Share (Kobo) * Turnover including franchise (2005 = N32,279; 2006 = N39,900)

23 Thank you very much! … climbing to the top!


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