Bua Foods Plc · NSENG:BUAFOODS
Bua Foods — Investor Presentation (January 2022)
43 slides from Bua Foods's investor presentation, January 2022
Slide 1: BUA Foods PLC: Facts Behind the Listing
BUA FOODS PLC Facts Behind the Listing January 2022 Page 1
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) This presentation has been prepared by BUA Foods PLC (“BUA Foods” or the “Company”) to provide an overview of the Company. “Presentation” means this document, its contents or any part of it, any oral presentation, any question or answer session and any written or oral material dis
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) The presentation includes market share and industry data obtained by the Company from industry publications and surveys and internal surveys. BUA Foods may not have access to the facts and assumptions underlying the numerical data, market data and other information extracted from
Slide 4: Presenters
Presenters Engr. Ayodele Abioye (MNSE) ACTING MANAGING DIRECTOR >30 Appointed 2021 Chief Operating Officer, SecureID Limited (2020 – 2021) Franchise Technical Director, Coca-Cola Nigeria (2017 – 2020) General Manager, Seven Up Bottling Company (2012 – 2016) Regional Supply Chain Director, Ni
Slide 5: Contents
Contents Page Sections No. 1 Introduction to BUA Foods PLC 6 2 BUA Foods’ Operational Performance 14 3 BUA Foods’ Financial Performance 18 4 Environmental and Social Contributions at BUA Foods 22 5 Our Business Strategy 24 6 Summary of the Listing 28 7 Conclusion 31 Appendix 36 Page 5
Slide 6: Introduction to BUA Foods PLC
1 Introduction to BUA Foods PLC
Slide 7: BUA Foods at a glance
BUA Foods at a glance | A leading foods business with well diversified and scalable operations, producing competitive consumer products Installed capacity and utilisation 5 8 2 #2 Divisions Installed Capacity Capacity Largest sugar Capacity3 Expansion Utilisation Business Plants across the Wholly ow
Slide 8: Locations: Strategically located across Nigeria
Locations | Strategically located across Nigeria LASUCO Sugar Company Rice Mill (North West) Oil Mill (North West) Industrial Complex Limited (“LASUCO Sugar”) (South South) (North Central) Oil Mill Rice Mill Sugar Refinery Lafiagi Sugar Plantation Sugar Refinery Oil Mill (South West) Flour Mill & Pa
Slide 9: Board and Corporate Governance
Board and Corporate Governance | Seasoned board of directors with robust knowledge and experience Board of Directors** Commentary Board has broad experience Abdulsamadu Rabiu across various sectors, well- Chairman placed to provide guidance and oversight In alignment with global best Ayodele Abi
Slide 10: Key Management
Key Management | Supported by a strong and experienced management team Ayodele Abdulrasheed Isyaku Oluseye Gert Jacobus Godspower Adewunmi Lebaran Saidu Abdullahi Name Abioye Olayiwola Rabiu Alayande Kriek Sivwete Desalu Audu Aminu Managing Chief Financial Executive Company Plants Director Plants Di
Slide 11: Investment Highlights
Investment Highlights | Uniquely positioned in a sector with significant growth prospects Leading player in the sugar industry in Nigeria Fast paced and innovative expansion capability, well positioned to capture increasing sector growth opportunities Strategically located plants across Nigeria, cou
Slide 12: Evolution
Evolution | BUA Foods has a robust history and is repositioned for growth in an attractive sector 2005 2005 2008 2009 2012 BUA Sugar BUA Flour Mills BUA Sugar commenced BUA Oil Mills BUA Oil Mills suspended Refinery Limited Limited (“BUA Flour operations with 750,000 Limited (“BUA Oil its operations
Slide 13: Structure: five business divisions and two subsidiaries
Structure | BUA Foods operates five business divisions and has two wholly-owned subsidiaries Divisions Subsidiaries 1 2 3 BUA Sugar 1 Refinery FZE Sugar Flour Pasta Leading producer of fortified Produces flour and bran for Processes, manufactures and 100% owned by BUA Foods and non-fortified
Slide 14: BUA Foods' Operational Performance
BUA Foods’ Operational 2 Performance
Slide 15: Industry: Nigeria's favourable demographics
Industry | Nigeria’s favourable demographic parameters propels ongoing and future growth of its consumer market Nominal GDP (₦’trn), Real GDP growth rate (%)1 Population (m)2 With a rapidly increasing population CAGR 2019-2025: 2.5% of around 201mn in 2021, Nigeria 168 233 129 146 143 217 222 228
Slide 16: Operations: sustainable, efficient and scalable platform
Operations | A sustainable, efficient and scalable platform Strategically Strategically located locatedultramodern ultramodernand and automated automated Broad Broadrange rangeof ofconsumer consumerproducts** products** plants plants to to cater cater forfor West West African African markets markets
Slide 17: Operations: well-defined strategy for market position
Operations | Supported by a well-defined strategy to ensure leading market position Growth focused investments Ongoing construction of additional facilities Planned integration to drive supply chain efficiency ~720,000 ~250,000 ~800,000 ~220,000 MTpa ~300,000 MTpa MTpa MTpa MTpa Estimated sugar refi
Slide 18: BUA Foods' Financial Performance
3 BUA Foods’ Financial Performance
Slide 19: Financial Performance
Financial Performance | Consolidated financial statements reflective of upside potential Revenue (₦’bn) and Revenue Growth EBITDA (₦’bn) and EBITDA Margin 31.7% 31.3% 304 95 193 61 FY2020 2021 (Jan -Nov) FY2020 2021 (Jan -Nov) Total Revenue x Revenue Growth (%) EBITDA x EBITDA Margin PBT (₦’bn) and
Slide 20: Unaudited Proforma Consolidated Statement of Profit and Loss
BUA Foods | Unaudited Proforma Consolidated Statement of Profit and Loss The proforma consolidated Statement of Profit and Loss, has been prepared on the assumption that the restructuring occurred as at 31 December 2020. 11 months ended Year ended 30 November, 2021* 31 December, 2020** ₦’000 ₦’000 R
Slide 21: Unaudited Proforma Consolidated Statement of Financial Position
BUA Foods | Unaudited Proforma Consolidated Statement of Financial Position The proforma consolidated Statement of Financial Position, has been prepared on the assumption that the restructuring occurred as at 31 December 2020, and share consideration issued as part of the restructuring to the shareh
Slide 22: Environmental and Social Contributions
Environmental and Social 4 Contributions at BUA Foods
Slide 23: Responsibility: environmental sustainability and community support
Responsibility | Committed to environmental sustainability and providing support and investment in its host communities Environmental Responsibility BUA Foods understands the essence of sustainable practices to current and future generations on a local and global scale Compliance Uses alternative
Slide 24: Our Business Strategy
5 Our Business Strategy
Slide 25: Strategy: supportive of growth and expansion plans
Strategy | Clear strategy supportive of growth and expansion plans Strategic Objectives Implementation & Outcomes Improve Market Share across all Increase market share across its five business divisions, leveraging additional capacity to be onboarded and 1 Five Business increasing demand in the co
Slide 26: Growth Driver: additional capacity to drive revenue
Growth Driver | Completion and operation of additional capacity is expected to drive revenue growth from 2022 and beyond New flour mill and pasta plants to be completed in 2022, will more than Additional growth opportunities beckons with double capacity and support revenue growth the recommencement
Slide 27: Marketing Strategy
Marketing Strategy | Reflective of business goals; aligned with sales and marketing objectives Improve Visibility Prioritise Stakeholder Management • Run equity building campaigns • Increase products promotion efforts • Sponsorship initiatives in alignment Deepen with our brand identity • Aggressive
Slide 28: Summary of the Listing
6 Summary of the Listing
Slide 29: Listing: Summary of the Listing
Listing | Summary of the Listing The Board and management team of BUA Foods welcomes the opportunity to engage with The Nigerian Exchange Limited and its Dealing Members, regarding the Company’s Listing by Introduction on the Main Board of the NGX (the “Listing”) Company name BUA Foods PLC Region
Slide 30: Listing: Rationale for the Listing
Listing | Rationale for the Listing ► The listing means that shares of BUA Foods PLC can now be bought and sold on the Exchange PROMOTE LIQUIDITY OF ► The listing creates liquidity and tradability of BUA Foods’ shares for existing BUA FOODS shareholders and an opportunity for the public to participa
Slide 31: Conclusion
7 Conclusion
Slide 32: Conclusion
Conclusion BUA Foods is a leading player in the foods and FMCG sectors, with well diversified and high- 1 quality operations, and market leadership in the Nigerian sugar industry BUA Foods’ fast paced and innovative expansion plans expected to significantly drive future growth, 2 with new flour mill
Slide 33: Thank You
Investor Relations Contact: Adewunmi Desalu Director, Marketing & Corporate Communications Thank You BUA Foods PLC BUA Towers, PC 32, Churchgate Street Victoria Island, Lagos Tel: +234 1 461 0669 ; +234 1 262 3535 Email: ir@buafoodsplc.com
Slide 34: Questions
Questions
Slide 35: Q&A
Q&A Page 35
Slide 36: Appendix
Appendix
Slide 37: Additional Corporate Governance Information
Additional Corporate Governance Information
Slide 38: Corporate Governance: Board of Directors profile
Corporate Governance | Board of Directors profile Name Profile Abdulsamadu Rabiu, Founder and Chairman of BUA International Limited CON Over three decades of experience establishing and managing business across the foods, mining and infrastructure sector Chairman He holds the Nigerian National
Slide 39: Corporate Governance: strong and diverse Board of Directors
Corporate Governance | BUA Foods is led by a strong and diverse Board of Directors Board of Directors Non-Executive Directors Executive Directors Abdulsamadu Rabiu(1) Ayodele Abioye Chimaobi Madukwe Abdulrasheed Olayiwola Rashid Imran Isyaku Rabiu Finn Arnoldsen Kabiru Rabiu Saratu Umar (2) sub-comm
Slide 40: BUA Sugar Refinery Limited – Historical Financial Statements
BUA Sugar Refinery Limited – Historical Financial Statements
Slide 41: BUA Sugar Refinery: Audited Historical Statement of Profit and Loss
BUA Sugar Refinery Limited | Audited Historical Statement of Profit and Loss H1 2021 FY2020 FY2019 FY2018 FY2017 FY2016 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000 Revenue from contracts with customers 51,591,457 98,352,683 83,689,564 71,419,245 68,924,552 68,913,395 Cost of sales (34,540,219) (65,129,116)
Slide 42: BUA Sugar Refinery: Audited Historical Statement of Financial Position
BUA Sugar Refinery Limited | Audited Historical Statement of Financial Position H1 2021 FY2020 FY2019 FY2018 FY2017 FY2016 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000 Non-current assets 90,925,448 92,079,370 94,656,996 95,185,744 94,923,636 94,056,092 Property, plant and equipment 90,923,328 92,073,761 94,6
Slide 43: BUA Sugar Refinery: Audited Historical Statement of Cashflows
BUA Sugar Refinery Limited | Audited Historical Statement of Cashflows H1 2021 FY2020 FY2019 FY2018 FY2017 FY2016 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000 Cash flows from operating activities 26,010,933 (10,211,915) 2,545,433 1,258,441 (25,422,916) 26,626,484 Cash (used in)/generated from operations 26,0