UACN Business Highlights J. Ayo Ajayi, Managing Director/CEOMay 2005
M M MENU MASTERS
Outline • Financials • Storm in the marketplace • Facts behind the figures • Innovation and Change • Winning With People • Digging new wells – the future
2004 Performance • Turnover including franchises (2003 = N21,041; 2004 = N26,002) • Reduction in profits from Disposals (divestment program) • EPS – Rights Issue expands share base
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
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!
Facts Behind the Figures Strategies … • Growing existing businesses (opportunities exist!) - Mr. Bigg’s restaurants–122 (vs 97 end 2003) - production facility expansion – Ice cream, Feeds - customer focus/market knowledge - improving product availability
Facts Behind the Figures … Strategies • Driving operational efficiencies - supply chain - distribution/logistics - improving processes/quality - new maintenance culture
Facts Behind the Figures • Rights Issue - reducing the debt burden by N1.7billion - preparing for real growth • More Cash business - franchising – Mr. Bigg’s, Innscor brands - debt collection
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
Digging new wells … creating the future! Strategies … 1. Focused diversification in 2 or 3 core areas (Vision & Mission-driven) - Food and food retail - Logistics
Digging new wells … creating the future! M M MENU MASTERS - Expanding QSRs portfolio to increase customer base – Bigg’s, Menu Masters - Manufacturing upgrade – snacks, ice cream - Broadening third party logistics – MDS
Digging new wells … creating the future! Strategies contd. Consolidate market shares in existing business Supply Chain Excellence
N4.3billion Proceeds ….. Rights Issue N’m • Fast Food (Restaurants (Mr. Bigg’s + Innscor Brands) 1,780 • Expansion of MDS 540 • Upgrade of IT & Financial Systems and Controls 300 • Debt Reduction 1,720
2005 & 2006 Forecast * Turnover including franchise (2005 = N32,279; 2006 = N39,900)
Thank you very much! … climbing to the top!