Nascon Allied Industries Plc · NSENG:NASCON
Nascon Allied Industries — FY2015 Earnings Presentation
18 slides from Nascon Allied Industries's earnings presentation, Apr 7, 2016
Slide 1: NASCON Allied Industries Investor Presentation
NASCON ALLIED INDUSTRIES Investor Presentation 7 April 2016 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward looking statements which reveal Management’s recent views and estimates. The forward looking statements contain certain risks and uncertainties that could cause actual results to vary materially from those contained in the forward looking statements. Pot
Slide 3: Dangote Industries
Dangote Industries Nigeria’s Premier Diversified Business Conglomerate • Founded by Aliko Dangote in 1981, Dangote Industries is the largest and most diversified industrial conglomerate in West Africa with revenues in excess of $3bn • The Group was originally established as a trading business with a
Slide 4: Key Milestones
Key Milestones NASCON Allied 1973 1991/1992 2008 till date Industries PLC Following stabilization of The Company was incorporated Privatization of NASCON. commenced operations, NASCON has operations as a salt with the Federal Government as The Company was listed on remained a dominant player in pr
Slide 5: Company Overview
Company Overview Largest Nigerian Salt Producer Business Model • Production capacity of 576,576MT in 3 locations (Oregun, Port Harcourt & Apapa) • 60% of the Nigerian salt market share • Capacity to produce 25 & 50kg bags of salt and 250, 500 and 1kg Sachets • 500 employees Efficient Operations • Lo
Slide 6: Product Range
Product Range Installed Capacity 576,576 MT Location Apapa, Oregun, PHC Salt Diversified product offering spanning the commercial, corporate and retail segments of the market Key revenue drivers are 50kg edible salt and refined sachet salt Installed Capacity 3,744 MT 37,440 MT 156,000 MT Locatio
Slide 7: Product Distribution
Product Distribution Aggressively penetrate selected markets to increase sales Customer Segmentation volumes and grow market share Distributors Corporates • 150 own trucks for effective distribution “NASTRANS” 28% • 4 Factory Warehouses of 70,000MT combined storage capacity – Apapa, Oregun, Otta, Po
Slide 8: Investment Highlights
Investment Highlights Attractive Macro Leading Market Position Performance Fundamentals • Favourable macro-economic • Transitioned from a • High turnover and high environment for moribund business in 1996 margins driven by tight investments to the market leader with operating structure 60% market sh
Slide 9: Investment Highlights
Investment Highlights Efficient Manufacturing Facilities Growth Strategy Management • State of the art • Clearly defined strategy to • Highly skilled management manufacturing facility maintain leadership position with experience averaging in domestic and regional 25 years • Efficient energy source w
Slide 10: Nigerian Salt Market
Nigerian Salt Market Per Capita Salt Consumption kg In Nigeria, food processing accounts for the vast majority of salt With an estimated consumption amongst various other uses which include animal 18 consumption of 17.0g husbandry, leather making, water conditioning, agriculture and 16 industrial
Slide 11: Operational Highlights
Operational Highlights Salt •Production of 370,033mt (2014: 328,112mt) •Capacity utilization increased to 64% (2014: 56%) •Sachet packaging redesigned in launched in Q4 – Marketing campaign launched in Q4 – Sales boost in Q4 •Rehabilitation of Oregun plant began in Dec 2015 •Gained 8% market share,
Slide 12: Financial Highlights
Financial Highlights Revenue Gross Profit EBITDA EPS DPS 43% 17% 11% 13% 10% N16.18B N4.36B N3.97B N0.79 N0.55 2014:N11.25B 2014:N0.70 2014:N0.50 26.9% margin 24.6% margin New businesses contribute N2.03m 15% growth in total sales volume 12
Slide 13: Financial Highlights
Financial Highlights Performance by Quarter FY2015 FY2014 Change 377,816 328,112 15% Sales (mt) 363,819 337,431 8% Production(mt) FY2015 FY2014 Change Revenue 16,178 11,251 44% Gross Profit 4,359 3,876 12% Gross Margin 32% 34% -2pp EBITDA 3,968 3,551 11% EBITDA Margin 24.5% 31.6% -7.1pp Profit Befor
Slide 14: Financial Highlights
Financial Highlights Performance by Vegetable Salt Fleet Seasoning Tomato Segment Oil Sales (MT) 369,054 n/a 561 1,664 6,537 MNGN MNGN MNGN MNGN MNGN Revenue 11,912 1,971 239 541 1,514 Gross Profit 4,490 281 (84) (230) (98) Gross Margins 38% 14% -35% -42% -6% Salt Revenue contribution • 15% sales vo
Slide 15: 2015 Financial Highlights
2015 Financial Highlights Balance Sheet 31st Dec 2015 31st Dec 2014 MNGN MNGN Non Current Assets 6,909 6,933 Current Assets 9,385 5,623 Total Assets 16,295 12,556 Long Term Debt 0 0 Loans & Borrowings 39 39 Current Liabilities 7,952 5,346 Total Liabilities 9,207 6,249 Total Equity 7,055 6,307 Cash f
Slide 16: Board & Management Team
Board & Management Team Board of Directors Title Background Yemisi Ayeni Chairperson Audit, Corporate Planning & Restructuring Paul Farrer Chief Executive Officer Marketing, Distribution, Operations Fatima Dangote Executive Director Law, Strategy, Agriculture Olakunle Alake Non-Executive Director Co
Slide 17: Focus for 2016
Focus for 2016 Reinvest to support growth Gain significant market share with re-focus on the DANQ seasoning Export to neighboring ECOWAS countries Develop strategies to manage prevailing business conditions for Tomato Paste & Vegetable oil Volume driven growth in west and eastern regions o
Slide 18: Investor Relations
Investor Relations For further information: Ayeesha Aliyu Investor Relations Lead Dangote Industries Limited +234 1 448 0815 -6 Ayeesha.Aliyu@dangote.com www.nasconplc.com 18
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