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.... unlocking opportunities. BUA GROUP OF COMPANIES LIMITED. PRESENTATION AT THE AFRICA DEBT CAPITAL MARKETS SUMMIT – LONDON STOCK EXCHANGE (LSE) – JUNE 21, 2011. BUA GROUP PROFILE. THE BUA GROUP WITH A COMBINED CAPITAL INVESTMENT IN EXCESS OF US$5BN CONSISTS OF:

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unlocking opportunities

....unlocking opportunities

BUA GROUP OF COMPANIES LIMITED

PRESENTATION AT THE AFRICA DEBT CAPITAL MARKETS SUMMIT – LONDON STOCK EXCHANGE (LSE) –

JUNE 21, 2011

bua group profile
BUA GROUP PROFILE
  • THE BUA GROUP WITH A COMBINED CAPITAL INVESTMENT IN EXCESS OF US$5BN CONSISTS OF:
  • BUA Sugar Refinery Limited
  • Lafiaji Sugar Company Limited
  • BUA Flour Mills Limited
  • BUA Pasta Limited
  • Nigerian Oil Mills Limited
  • BUA Oil Mils Limited
  • Damas Shipping Co. Ltd
  • BUA Ports & Terminals Ltd
  • BUA Estate Development Ltd
  • BUA Oil & Gas Limited
  • BUA International Limited
  • BUA Cement Nigeria Limited
  • Cement Company of Northern Nigeria Plc
  • Edo Cement Company Ltd, Okpella

BUA GROUP

bua group profile1
BUA GROUP PROFILE
  • BUA SUGAR REFINERY LTD
  • Second Sugar Refinery in Nigeria
  • Current valuation in excess of US$500 million
  • Installed capacity of 2,000mt per day
  • Second plant of same capacity to be built in Port Harcourt
  • BUA FLOUR MILLS LTD
  • Capitalisation is over US$50million
  • Business includes the processing of wheat into flour and bran. Consists of 2 factories with output of 1,000mt per annum. Capacity being expanded to 3,000mt per day
  • Plants are located in Lagos in the south and Kano in the north of Nigeria

BUA GROUP

bua group profile2
BUA GROUP PROFILE
  • An emerging indigenous group in Nigeria
  • The Group was established in 1988 by Abdulsamad Rabiu
  • The Group’s business can be segmented as follows:

Manufacturing: Food & Beverages, Building Materials, Maritime, Property Development, Oil & Gas, Iron & Steel

bua ports terminals
BUA PORTS & TERMINALS
  • Business of Terminal Operations/port management
  • Concessionaires and Managers of Port Harcourt ports, Terminal B
  • Strategic for the establishment of various projects as Flour, Pasta Plant, Cement Bagging Plant, Sugar Refinery, etc.
cement company of northern nigeria ccnn
CEMENT COMPANY OF NORTHERN NIGERIA (CCNN)
  • Incorporated as a private limited liability company 15th August 1962 and listed on the 4th October 1993
  • Leading supplier of cement within the North-West
  • Best cement product in the North-West Nigeria
  • Located in Kalambaina – on a pure limestone belt of over 200 million tons, capable of sustaining the plant’s operation for at least 100 years
bua cement co ltd
BUA Cement Co. Ltd
  • Inc. as a private limited liability company in 2008
  • It currently operates out of Port Harcourt through a Floating Cement Vessel, MV BUA Cement 1
  • BUA Cement 1 commenced operations in 2009
bua cement co ltd1
BUA CEMENT CO. LTD.
  • BUA Cement 1 is 200 metres long and has a storage capacity of 40,000 metric tonnes
  • The vessel is equipped with a Siwertel ship unloader capable of receiving cement at a rate of 800 metric tonnes per hour from incoming cement ships
  • Capable of bagging with 4 packers with each machine capable of packing 120 metric tonnes per hour
  • It has capacity daily to pack and discharge 4,500 metric tonnes of high quality BUA cement in 50 kg bags
edo cement company ltd
Edo Cement Company Ltd
  • Established in 1964 with Indigenous Shareholders
  • Located at kilometre 34, Auchi-Okene Road, about 5km north of Okpella town, Edo State
  • The Federal Govt privatisation act led to its acquisition by Damnaz Cement Company Ltd which BUA later bought
edo cement company ltd1
Edo Cement Company Ltd
  • BUA Group has 87% holding in Edo Cement Coy Ltd
  • Presently 400,000 mt p.a cement plant
  • BUA Group and FLSmidth of Denmark recently signed a U$500m for construction of a new plant to bring the installed capacity to 2.9mt pa upon completion
bua s sugar business
BUA’s Sugar Business
  • April 13 2005: Incorporated BUA Sugar Refinery Ltd as a private limited liability company with an installed capacity of 720,000 MT/Annum
  • 2008: Commenced production at the Sugar Refinery. The company refines imported brown sugar
  • BUA Sugar Refinery is the second largest Sugar Refinery in West Africa
  • 2009: BUA acquired Lafiaji Sugar Company for backward integration;
bua s sugar projects
BUA’s Sugar Projects
  • BUA Sugar Refinery Ltd. Port Harcourt (New Plant): In 2011 commenced the construction of a new Sugar Refinery with installed capacity of 720,000MT/Annum
  • Lafiaji Sugar Company Ltd (New Sugar Factory) – Development of new sugar factory alongside a sugarcane plantation of production capacity - 720,000mt p.a.
  • On project completion, BUA’s total sugar production capacity would be at least 2.16m mt/ p.a.
bua s flour business
BUA’s Flour Business
  • March 2005: Incorporation of BUA Flour Mills Ltd. to primarily engage in the production of flour for both local and international market
  • BUA Flour Mills has a current production capacity of:
    • 156,000mt per annum for the Lagos Plant
    • 156,000mt per annum for the Kano Plant
  • Expansion projects have commenced on both plants to increase capacity by 100% (each) to 312,000mt p.a.
bua flour projects
BUA Flour Projects
  • 2009/2010: Commenced construction of a Pasta Plant to produce Semolina (360MT/day) and Pasta (240MT/day)
  • Production Capacity of Pasta Plant of 156,000MT/Annum
  • Upon completion of the BUA Flour expansion and Pasta Plant projects, BUA’s total production capacity would be 780,000 mt p.a.

BUA GROUP

bua s project financing structure
BUA’s Project Financing Structure

BUA’s project financing structure can be broken into three distinct stages

  • Stage 1: (EQUITY)
    • Commence with a100% equity financing then ‘part refinancing’
  • Stage 2: (DEBT/EQUITY)
    • A mixture of debt & equity with the debt arrangement done through Syndication
  • Stage 3: (Future Financing Plans)
    • Capital market, Issuance of Bonds, etc
bua s financing strategies
BUA’s Financing Strategies

There are three major financing strategies that we use in achieving our financing goals

Key Issues

  • Local and Foreign exchange lending mix
  • Long-term loans for projects
  • Competitive pricing of credit facilities – cost of capital
bua s project financing plans
BUA’s Project Financing Plans
  • CCNN US$300m Expansion Project:
    • Debt Financing of US$
    • And Hybrid offer/IPO valued at US$300m
  • Edo Cement US$500m Project
    • Debt Financing of US$
  • Greenfield project for BUA Cement
    • Debt Financing of US$
  • BUA Sugar Refinery Ltd Project:
    • Debt Financing of US$
    • IPO value
in conclusion
In Conclusion
  • BUA’s expansion plans in the cement industry is being driven by the huge and growing demand for affordable housing & growth in infrastructural development & the construction industry in Nigeria
  • BUA is poised to become the 2nd largest Cement manufacturer by 2015 with an installed capacity of 9.052mMT per Annum
  • We are positioned to become market leaders in Sugar production by 2014 with an installed capacity of 2.16m mt p.a.
  • BUA’s healthy cash flow and the benefits of debt financing drive our project financing plans which is mostly centered around achieving a 50:50 debt/equity ratio
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