UAC of Nigeria PLC · NSENG:UACN
UAC of Nigeria — FY2015 Earnings Presentation
33 slides from UAC of Nigeria's earnings presentation, 2016
Slide 1: UAC of Nigeria PLC Group Results Presentation – Full Year 2015
UAC of Nigeria PLC Group Results Presentation – Full Year 2015
Slide 2: Important Notice
Important Notice This presentation contains or will contain forward-looking statements which reflect management's expectations regarding the Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "e
Slide 3: Contents
Contents Larry Ettah 1 Overview of the business in FY 2015 GMD/CEO 22 Financial Performance review Abdul Bello CFO 3 Larry Ettah 3 Summary & outlook GMD/CEO 3
Slide 4: Contents
Contents Larry Ettah 1 Overview of the business in FY 2015 GMD/CEO 22 FINANCIAL Performance review Abdul Bello CFO 3 Larry Ettah 3 Summary & outlook GMD/CEO 4
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Slide 6: Presentation Overview
Presentation Overview “Tough operating environment in 2015 but we held our market positions” 6
Slide 7: Operating Environment of 2015
Operating Environment of 2015 GDP growth down to 3% in 2015 (6.2% 2014) Parallel Market FX Rates - N191/1$ (2014), N266/1$ (2015) Inflation at 9.6% (7.9% 2014) Political uncertainty, delayed transition and stability of new Government/ Cabinet Insecurity in the North; national petroleum pro
Slide 8: Vision, Mission and Values
VISION MISSION To be number one in our chosen To grow our top-line at twice the markets, providing exceptional rate of GDP growth in Nigeria at a value to our customers blended EBIT profitability of 15% OUR VALUES 1. Our Customers are our Focus 2. We act with Respect for the Individual 3. We act wit
Slide 9: Group Structure
Group Structure Snacks/Beverages QSR Animal Feed/Edible Oil/Maize Meal Animal Feed UAC Grand Cereals Livestock UAC Foods Restaurants LTD Feeds PLC LTD (51%) LTD (51%) (64.9%) (51%) Foods Pension Paints Real Estate Logistics Administrator Portland Paints MDS Logistics CAP PLC and Products UPDC PLC UN
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Slide 11: Operations Review
Operations Review Turnover down 14% Bird flu and egg glut impacted poultry volumes Launched Vital Gold, Aqua Boom & Farmers fish feed Fish feed volume growth Insecurity in the North continued to impact sales as well as oilseeds and grains availability Forex shortages and elevated input c
Slide 12: Operations Review
Operations Review Turnover up 13% on the back of new Ikeja mill & introduction of Aquamax Fish feed Rationalised Benin-City factory; toll milling from Grand Cereals’ Onitsha plant Rising input costs and grains and oilseeds shortages Egg glut & later ‘Bird Flu’ outbreak impacted volumes Tur
Slide 13: Operations Review
Operations Review Turnover down 56% Property market remains soft Rising interest rates impacting margins Festival Mall opened for business Turnover up 1% Increased client base but overall client volume decline Major fire at Abuja Pharmaceutical warehouse; quickly rebuilt and trading
Slide 14: Performance of Key Subsidiaries
Performance of Key Subsidiaries UAC Foods (N’Million) UAC Restaurants (N’Million) 15,143 14,550 2014 2015 1,221 2014 2015 1,078 1,463 1,434 108 Turnover PBT Turnover PBT -134 Grand Cereals (N’Million) Livestock Feeds (N’Million) 35,813 8,963 2014 2015 2014 2015 30,620 7,914 2,925 2,041 361 280 14 Tu
Slide 15: Performance of Key Subsidiaries
Performance of Key Subsidiaries CAP (N’Million) Portland Paints (N’Million) 6,988 7,057 2014 2015 2,798 2014 2015 2,168 2,442 2,572 105 Turnover PBT Turnover PBT -332 UPDC (N’Million) MDS (N’Million) 11,701 2014 2015 4,836 4,860 2014 2015 5,121 3,541 1,501 1,026 56 15 Turnover PBT Turnover PBT
Slide 16: Update on Capital Raise
Update on Capital Raise UAC Group Proposal for Private Placement of Preference Shares was not approved by the Shareholders Approved Rights Issue of 1 for 12 aborted due to weak equity market UPDC Rights Issue of 2 for 3 in process. To raise approximately N5.6 billion Commercial Paper Program of
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Slide 18: Outline
Outline Larry Ettah 1 Overview of the business in 1h 2015 GMD/CEO 22 FINANCIAL Performance review Abdul Bello CFO 3 Larry Ettah 3 Summary & outlook GMD/CEO 18
Slide 19: Poor quality photo!
Poor quality photo! 19
Slide 20: Key Performance Highlights
Key Performance Highlights Group Company 2015 2014 2015 2014 Turnover 73,145 85,654 821 929 Financial Gross Profit 16,565 19,183 821 929 Performance EBIT 7,607 12,394 2,684 3,941 PBT 7,944 14,097 4,162 5,341 2015 2014 2015 2014 Cash (N'm) 9,183 7,957 3,431 2,855 Financial Borrowings (N'm) 25,649 28,
Slide 21: Statement of Profit or Loss
Statement of Profit or Loss Group Company 2015 2014 2015 2014 N'M N'M N'M N'M Comments Continuing Operations Revenue decline largely on account Revenue 73,145 85,654 821 929 of drop in sales in UPDC (N6.2 Cost of sales (56,580) (66,472) - - billion) and Grand Cereals (N5.7 - - Gross profit 16,565
Slide 22: Statement of Financial Position
Statement of Financial Position Group Company 2015 2014 2015 2014 N'M N'M N'M N'M PPE 35,439 36,613 858 852 Investment property 20,035 19,924 2,985 3,199 Investments in associates 21,208 19,101 - - Investments in subsidiaries - - 11,641 11,641 Trade and other receivables 14,594 15,950 8,572 7,815 Ca
Slide 23: Group Trend Analysis
Group Trend Analysis Turnover (N’M) Operating Profit (N’M) 85,654 15,192 78,714 73,145 69,632 12,394 11,526 59,638 7,715 7,607 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Turnover trend in 2015 reflects the challenge of the environment and the consumer 23
Slide 24: Group Trend Analysis
Group Trend Analysis EPS (Kobo) DPS (Kobo) 175 175 340 160 291 257 100 156 2012 2013 2014 2015 2012 2013 2014 2015 Dividend cut bolsters our capital position 24
Slide 25: Group Trend Analysis
Group Trend Analysis Gearing/Current Ratio ROE 1.22 1.25 1.19 15% 1.16 14% 12% 0.50 0.38 7% 0.36 0.35 2012 2013 2014 2015 Current Ratio Gearing 2012 2013 2014 2015 25
Slide 26: Turnover by Segment
Turnover by Segment FY 2015 FY 2014 Logistics Real 6% Estate 9% Logistics Real 6% Estate 14% Paints 13% Paints 10% Food & Food & Bev 71% Bev 70% Turnover contribution for Real Estate segment down 5%; Paints is up 3% 26
Slide 27: PBT by Segment
PBT by Segment FY 2015 FY 2014 Logistics Real 14% Estate Others Others 28% Food & 1% Bev 2% 39% Food & Bev 50% Paints Logistics 34% 12% Paints 20% Paints contribution to PBT was 34%; Foods is up 11%, both on account of decline in UPDC 27
Slide 28: Segment Analysis
Segment Analysis Turnover (N’M) Gross Margins 60,091 50% 49% 55,212 36% 36% 29% 17% 16% 16% 11,701 9,786 9,225 5,121 4,836 4,860 Foods Real Estate Logistics Paints Foods Real Estate Logistics Paints 28
Slide 29: Segment Analysis
Segment Analysis PBT Margins 30% 31% 28% 25% 21% 8% 6% 1% Foods Real Estate Logistics Paints 29
Slide 30: The Healthy Meal For Smart Dogs
—— The Healthy Meal For Smart Dogs —— £6 ceoatibisedeanlalt ci? ee ae Bingo
Slide 31: Outline
Outline Larry Ettah 1 Overview of the business in FY 2015 GMD/CEO 22 FINANCIAL Performance review Abdul Bello CFO 3 Larry Ettah 3 Summary & outlook GMD/CEO 31
Slide 32: Outlook FY 2016
Outlook FY 2016 Planned Government spend will be inflationary but same should improve purchasing power of consumers Forex shortages and Government focus on Agriculture should be supportive of our animal feed businesses Government focus on Housing development should be supportive of our Real es
Slide 33: Our 2016 Priorities
Our 2016 Priorities 1 Innovation Fast-track innovation in manufacturing units Introduce new products in key categories 2 Talent Resourcing & Human Capacity building Management Asset and yield optimisation 3 Resource Drive for greater efficiency especially in supply chain Optimisation Cost