UAC OF NIGERIA PLCH1 2013 Results Presentation

UAC OF NIGERIA PLC

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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", "expects", "intend" "estimate", "project", "target", "risks", "goals" and similar terms and phrases have been used to identify the forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking statements. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally. UAC of Nigeria cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and undue reliance should not be placed on the forward-looking statements. For additional information with respect to certain of these risks or factors, reference should be made to the Company’s disclosure materials filed from time to time with Securities & Exchange Commission in Nigeria. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Important Notice

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Contents

outlook4

Update on strategic thrusts

Financial performance review

Overview of the business in H1 2013Larry EttahGMD/CEO

Abdul BelloCFO

Joe DadaED Corp. Services

Larry EttahGMD/CEO

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Contents

outlook4

Update on strategic thrusts

Financial performance review

Overview of the business in H1 2013Larry EttahGMD/CEO

Abdul BelloCFO

Joe DadaED Corp. Services

Larry EttahGMD/CEO

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VISIONTo be number one in our chosen markets, providing exceptional

value to our customers

MISSIONTo grow our top-line at twice the rate of GDP growth in Nigeria at a

blended EBIT profitability of 15%

OUR VALUES1. Our Customers are our Focus2. We act with Respect for the Individual3. We act with Integrity in everything we do4. Team spirit will give us good success5. Innovation for business sustenance and value creation6. We are Open and Communicate with our people

DESIRED OUTCOMEAdding value to the lives of our stakeholders

Business Review – UACN Plc

Food & Beverage Real Estate Paints Logistics Others

Grand Cereals Ltd (64.9%) Grand Oil, Vital Feeds,

Grand Maize Flour, Grand Maize Grits, Rich Fill

UPDC Plc (46%)

Property Development

Facility Management

Property Sales Property Lease

CAP Plc (50.1%)

Dulux Paints Caplux Paints

MDS Logistics Plc (51%)

Warehousing Haulage Redistribution

UNICO CPFA Ltd (87%) Closed Pension

Fund Administrator

UAC Foods Ltd (51%) Gala, Funtime Cake,

Funtime Coconut Chips, Snaps Puffed Maize, Delite Fruit Juice, SWAN Water

Portland Paints & Products Nigeria Plc (51%) (Acquired June 28 2013)

Sandtex Decorative Paints

Hempel Marine Paints

UAC Registrars Ltd (100%)(Divesting in August 2013)

UAC Restaurants Ltd (100%)(168 Outlets) Mr Bigg’s GM Nig. Ltd (60%)

(Winding Down)

Livestock Feeds Plc (51%) Animal Feeds

Warm Spring Waters Nig. Ltd (76%)

Gossy Water6

UAC has defined its holding company structure as a model consisting of a Corporate Centre overseeing a portfolio of interests across 4 key verticals

H1 2013 Highlights

UAC acquires controlling

stake in Livestock Feeds

UAC acquires controlling

stake in Portland Paints

MDS completes partnership

arrangement with Imperial

LogisticsUAC

Restaurants returns to

profitability

UPDC completes

REIT; lists on the NSE

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Operations Review

Turnover up 8%

Installation of new blow mould equipment at SWAN Factory

Installation of two additional production lines for Gala

Completion of facility upgrade in Ojota & Oregun

Roll out of Funtime Cake with 15 days shelf life

Working to regain days lost to installations and improve off-take

Security challenges in the North have impacted on sales execution.

Turnover up 27%

North East market inaccessible (Security Challenges)

Elevated local grain prices impacting margins; procurement savings being pursued (via Offshore sourcing)

Operational review and restructuring on-going

New Plant installation on-going

Turnover down 27% (Q1 2012 had corporate stores now franchised)

Launched N600 Naija Meal

Franchising outstation central kitchens

Due diligence by prospective investors

UAC FOODS LTD GRAND CEREALS LTD UAC RESTAURANTS LTD

Operations Review

Turnover up 18%

Grandville Estate (GRA – Ikeja) & Metro Gardens (Lekki) commissioned

Construction work on Festival Mall, Festac commenced

UPDC REIT listed on the Nigerian Stock Exchange

Sales mix impacting profit favourably

Turnover up 38%

Commenced business with four new clients

Capacity upgrade of Abuja Pharma warehouse facility

Imperial Logistics acquired equity stake (49%)

Joint operational review with Imperial on-going

Turnover up 14%

Opened four new Dulux Colour Shops

UPDC PLC MDS LOGISTICS PLC CAP PLC

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Contents

outlook4

Update on strategic thrusts

Financial performance review

Overview of the business in H1 2013Larry EttahGMD/CEO

Abdul BelloCFO

Joe DadaED Corp. Services

Larry EttahGMD/CEO

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Turnover up 24%; key drivers include Grand Cereals (up 26%), UPDC (up 18%) and MDS Logistics (up 38%)

Other Income is boosted by UPDC profit on sale of investment property

Finance Costs up 10% primarily due to increase in UPDC’s finance costs (up 29%)

Raw material price increases impacting margins of Grand Cereals; we expect improvement at Q4 2013

PBT up 51%; key contributors include UPDC (up 129%), MDS (up 37%) and UAC Restaurants (N99m vs. loss of N212m)

Review of Financial Performance

Review of Financial Performance(N’Billion)

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turnover gross profit PBT

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2012 2013

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Summary of Financial Performance (YoY)

30 June 13 30 June 12N'000 N'000 %

Revenue 37,713,037 30,503,865 24%Cost of sales (28,152,376) (21,883,135) 29%Gross profit 9,560,661 8,620,730 11%

Selling and distribution expenses (932,621) (740,954) 26%Administrative expenses (4,081,204) (3,861,510) 6%Other gains/(losses) 1,362,416 128,478 960%Operating profit 5,909,251 4,146,744 43%

Finance income 657,799 547,433 20%Finance cost (1,348,452) (1,227,811) 10%Net finance income / (cost) (690,653) (680,379) 2%

Profit before taxation 5,218,599 3,466,366 51%Taxation (1,776,268) (1,326,165) 34%

Profit from continuing operations 3,442,330 2,140,201 61%

Other comprehensive income for the period net of taxation 1,303 -

Profit attributable to:Equity holders of the parent 1,619,782 991,296 63%Non controlling interest 1,807,306 1,148,905 57%Total comprehensive income for the period 3,428,391 2,140,201 60%

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YOY Margins AnalysisEBIT MarginGross Margin

20122013

28%

25%

20122013

14%16%

Gross Margin down due to input cost pressures in Grand Cereals.EBIT Margin improves by 2%

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Capital StructureInterest Cover (x)Debt to Equity (x)

FY 2012H1 2013

0.50

0.57

H1 2012H1 2013

3.38

4.38

Debt to Equity Ratio up due to increased debt in Grand Cereals.Interest Cover improves as a result of higher EBIT.

Improving Returns…ROAROE

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ROE and ROA grew on the back of a robust performance

2012 2013

8.06% 8.12%

2012 2013

7.90%

11.08%

Summary of Financial Position

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30 June 13 31 Dec 12N'000 N'000

Non-current assets 71,810,683 69,261,320

Current assetsCash and short-term deposits 12,658,716 13,397,062 Others 43,116,141 40,317,211 Total 55,774,856 53,714,273

Total assets 128,460,153 122,975,593

Non-current liabilitiesBorrowings 12,208,096 15,018,742 Others 3,714,665 3,486,041 Total 15,922,761 18,504,783

Current liabilitiesShort-Term Bank Facilities 23,378,115 15,246,602 Others 26,882,017 28,622,950 Total 50,260,132 43,869,552

Total liabilities 66,333,043 62,374,335

Equity Ordinary share capital 960,432 800,360 Reserves 36,103,274 36,225,824 Equity attributable to Parent 37,063,706 37,026,184

Non controlling interest 25,063,404 23,575,074 Total equity 62,127,109 60,601,258

Net Equity & Liabilities 128,460,153 122,975,593

Review of Financial Position(N’Billion)

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non current assets current assets current liabilities long-term creditors net assets

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54

44

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61

72

56 50

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2012 2013

Total Equity (N’Billion)Total Debt (N’Billion)

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Borrowings increased on account of increased leverage in Grand Cereals as well as consolidation of Livestock Feeds. Total Equity up marginally.

Capital Structure

FY 2012 H1 2013

30.3

35.6

FY 2012 H1 2013

60.6 62.1

Summary of Cash flows

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2013 2012N'000 N'000

Net cash flow generated from operating activities (693,948) 9,429,353

Net cash used in investing activities (1,722,945) (3,175,721)

Net cash flow used in financing activities(1,992,703) (6,239,643)

Net increase/(decrease) in cash & cash equivalents (4,409,596) 13,989

Cash & cash equivalents at the beginning of the year4,390,460 4,376,471

Cash & cash equivalents at the end of the year (19,136) 4,390,460

Segment Analysis - TurnoverH1 2012H1 2013

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The Food & Beverage, Real Estate, Logistics and Paints segments constituted approximately 100% of revenues in H1 2013 and H1 2012

Food & Bev

. 67%

Paints 8%

Lo-gis-tics 7%

Real

Es-tate 18%

Food &

Bev 68%

Paints 9%

Logistics 5%

Real Estate 18%

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Segment Analysis – PBTH1 2012H1 2013

Food & Bev.52%

Paints15%

Real Estate26%

Others2%

Logistics 5%

The Food & Beverage, Real Estate, Paints and Logistics segments contributed 97% of Group PBT for H1 2013. Impressive performances in Real Estate and Logistics changes contribution dynamics

Food & Bev.35%

Paints18%

Logistics13%

Real Estate31%

Others3%

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Performance of Key Subsidiaries

UPDC (N’Billion)

Grand Cereals (N’Billion)UAC Foods (N’Billion)

CAP (N’Billion)

Turnover PBT

6.57

0.89

7.08

0.86

2012 2013

-Expanded volume to be unleashed in H2to absorb increased depreciation, etc

Turnover PBT

5.42

0.68

6.32

1.62

UPDC growth in PBT boosted by profit on disposal of investment property

Turnover PBT

11.93

1.26

15.08

0.75

-Input cost pressures -Insecurity in nearby marketsHigh cost from new plant; expansion in progress

Turnover PBT

2.53

0.85

2.88

0.91

UAC Restaurants (N’Million)

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MDS Logistics (N’Million)

Turnover PBT

1,101

-212

805

99

2012 2013

Turnover PBT

2,464

79

2,702

95

2012 2013

Livestock Feeds (N’Million)

Turnover PBT

1,645

464

2,267

637

2012 2013

MDS records impressive 37% growth in PBT

UAC Restaurants returns to profitability

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Margins by Subsidiaries

Gross Margins PBT Margins

CAP

Grand C

erea

ls

UAC Foods

MDS

UPDC

LSF

32%

5%

12%

28%26%

4%

49%

11%

29%

36%

43%

11%

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Contents

outlook4

Update on strategic thrusts

Financial performance review

Overview of the business in H1 2013Larry EttahGMD/CEO

Abdul BelloCFO

Joe DadaED Corp. Services

Larry EttahGMD/CEO

Acquisition of Portland Paints & Products Nigeria Plc

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Transaction consummated via secondary market trades

51% equity stake has been acquired

Key Project Milestones December 21 2012 - Definitive Agreements Executed May 9 2013 - SEC Approval Obtained June 28 2013 - Payment for Shares/Transaction Close

Valuation Price Per Share – N4.47 Transaction Size – N912 Million

M&A Update

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UAC Restaurants – Due Diligence completed. Final Discussions on-going

UAC Registrars – Transaction closure shortly

UPDC – Negotiation with Potential investor On-going

GM Nigeria Limited - Liquidation in progress

UPDC REIT Highlights

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Original plan to raise N30 billion (UPDC 40% & Public 60%)

Resized REIT - N26.7 billion (UPDC N16.7 billion - 62% & Public N10.03 billion - 38%)

Offer costs - N0.67 billion

Unearned rent on REIT property - N2.1 billion

Net Amount for UPDC - N3.1 billion

REIT listed on the NSE on July 1 2013

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Contents

outlook4

Update of strategic thrusts

Financial performance review

Overview of the business in H1 2013Larry EttahGMD/CEO

Abdul BelloCFO

Joe DadaED Corp. Services

Larry EttahGMD/CEO

H2 2013 Key Priorities

Tackle margin challenges across key categories

Complete capacity expansion in Grand Cereals Onitsha

Conclude transactions in respect of UAC Restaurants and UAC Registrars

Focus on integration of new acquisitions

Consolidate on existing partnerships

Deliver on profit targets for the year

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THANK YOU