UACN

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UACN
Business Highlights
J. Ayo Ajayi, Managing Director/CEO
May 2005
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(No Transcript)
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Outline

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

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Group Performance Turn-Around
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Group Performance Turn-Around
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Group Performance Turn-Around
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2004 Performance

• Turnover including franchises (2003 N21,041
  2004 N26,002)
• Reduction in profits from Disposals (divestment
  program)
• EPS Rights Issue expands share base

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2004 Performance
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Dividend History
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Share Price History (Year End)
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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

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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!
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Facts Behind the Figures

• Strategies
• Growing existing businesses (opportunities
  exist!)
• - Mr. Biggs restaurants122 (vs 97 end 2003)
• - production facility expansion Ice cream,
  Feeds
• - customer focus/market knowledge
• - improving product availability

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Facts Behind the Figures

• Strategies
• Driving operational efficiencies
• - supply chain
• - distribution/logistics
• - improving processes/quality
• - new maintenance culture

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Facts Behind the Figures

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

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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

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Digging new wells creating the
future!
Strategies 1. Focused diversification in 2
or 3 core areas (Vision Mission-driven) - Foo
d and food retail - Logistics
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Digging new wells creating the
future!
- Expanding QSRs portfolio to increase customer
base Biggs, Menu Masters - Manufacturing
upgrade snacks, ice cream - Broadening third
party logistics MDS
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Digging new wells creating the
future!

• Strategies contd.
• Consolidate market shares in existing business
• Supply Chain Excellence

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N4.3billion Proceeds .. Rights Issue
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2005 2006 Forecast
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2005 2006 Forecast
Turnover including franchise (2005 N32,279
2006 N39,900)
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Thank you very much!
climbing to the top!