Business Highlights J. Ayo Ajayi, Managing Director/CEO May 2005

Outline

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

Group Performance Turn-Around

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5

10

15

20

25

30

1997 1998 1999 2000 2001 2002 2003 2004

NPS

P.A.T.

Group Performance Turn-Around

1999 (N’m)

2000 (N’m)

2001 (N’m)

2002 (N’m)

2003(N’m)

Sales to third parties 8,407 8,478 13,238 17,519 20,844

Profit from Operations (578) 278 806 1,460 1,548

Exceptional items 586 111 1,367 179 1,422

Profit after tax 14 106 1,007 1,166 2,185

Earnings per share (Kobo) 3 12 111 128 240

Dividend Per Share (Kobo) 0 0 15 35 60

1999 (N’m)

2000 (N’m)

2001 (N’m)

2002 (N’m)

2003(N’m)

Capital Expenditure 996 1,179 3,121 3,966 2,481

Shareholders’ Funds 4,320 4,507 5,365 6,429 7,920

Net Current (Liabilities)/Assets (1,053) (1,630) (1,822) (3,642) (2,674)

Group Performance Turn-Around

2004 Performance

2004 2003 % Growth

Sales to third parties 25,116 20,844 20.5

Profit from Operations 1,902 1,548 22.9

Exceptional items 517 1,422 (51)

Profit after tax/M.I. 1,570 2,185 (28)

Earnings per share (Kobo)

- Adjusted

137

-

240

191

(43)

Dividend Per Share (Kobo)

- Adjusted

85

-

60

48

42

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

2004 Performance

2004 2003%

Growth

Capital Expenditure 1,725 2,481 (30.4)

Shareholder’s Funds 11,150 7,920 41

Net Current (Liabilities)/Assets 840 (2,674)

Dividend History

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60

80

100

1999 2000 2001 2002 2003 2004

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2.00

4.00

6.00

8.00

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12.00

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16.00

1999 2000 2001 2002 2003 2004

Naira

Share Price History (Year End)

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

Rights Issue- reducing the debt burden by N1.7billion

- preparing for real growth

More Cash business- franchising – Mr. Bigg’s, Innscor brands- debt collection

Facts Behind the Figures

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

- 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!

Digging new wells … creating the future!

Strategies contd.

2. Consolidate market shares in existing business

3. 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 & FinancialSystems and Controls 300

Debt Reduction 1,720

2005 & 2006 Forecast

2005 2006

Capital Expenditure 3,250 3,000

Shareholders’ Funds 13,329 15,152

Net Current (Liabilities)/Assets

400 450

2005 & 2006 Forecast

2005 2006

Sales to third parties 30,579 37,000

Profit from Operations 2,405 3,006

Exceptional items 120 50

Profit after tax 1,811 2,200

Earnings per share (Kobo) 141 172

Dividend Per Share (Kobo) 100 100+

* Turnover including franchise (2005 = N32,279; 2006 = N39,900)

Thank you very much!

… climbing to the top!