\d Nigerian Breweries Plc ay WE ANINeIE PAU Fes | ACCOUNTS: i ieTaliale MLN eCatcedNEW LOOK GREAT TASTE ENJOY RESPONSIBLY. NOT FOR SALE TO PERSONS UNDER THE AGE OF 182019 Annual Report & Accounts Table of Content Vision, Mission statement and Core Values si Corporate Profile... Nationwide Presence Directors and Other Corporate Information ‘Company Results ata Glance Srrenemneesmaratenresmnte — - Board of Directors = : Board of Directors’ Profile — es sence = Executive Committee ss = = — - Notice of Annual General Meeting =~ Chairman's Address — = ea, sd e = Directors’ Report 2019 Corporate Social Responsibility and Sustainability Report — ~ _ ‘Audit Committee's Report Independent Auditor's Opinion - - Consolidated and Separate Statements of Financial Position Consolidated and Separate Income Statements Consolidated and Separate Statements of Other Comprehensive Income —. Consolidated Statements of Changes in Equity ———— Consolidated and Separate Statements of Cash Flows Notes to the Consolidated and Separate Financial Statements... Other National Disclosures... és Shareholders! Information — Major Customers _ i Bb Niderd Forres a es ee PROXY FOP nso 40 2 7 22 43 46 48 34 55, 56 87 61 62 uy 124 wy 129 131 \2010 Annual Report & Accounts Vision, Mission Statement and Core Values VISION Nera Laie liTp Mo ienen reesei cetaty Pathetic erat eyed MISSION STATEMENT (eee ira atic company in Nigeria, marketing Pure aeac eee ST eure ee err ny an environmentally Geeae lane CORE VALUES Leura car un ae tTelINe ymensiec aurCorporate Profile igerian Breweries Plc, the pioneer and largest brewing Company in Nigeria was incorporated in 1946.5 “Nigerian Brewery Limited”. In lune 1949, the Company recorded a landmark when the first bottle of STAR lager beer rolled out ofits Lagos Brewery bottling lines. In 1957, the company commissioned its second brewsry in ‘Aba and the name beceme ‘Nigerian Breweries Limited’, This was ‘ollowed by Kadune Brewery in 1963 and Ibadan Brewery in 1982. Following the coming into effect of the Companies and Allied Matters Actin 1990, the name of the company was changed to "Nigerian Breweries Ple" to reflect itspublic limited liability status, In 1093, the Company acquired its fith brewery in Enugu and in 2003, a siith brewery (Ama Brewery), sited at Amaeke Ngwo In Enugu State was commissioned, Operations in the old Enugu Brewery were discontinued in 2004 following the completion of Ama Brewery. An ultra- modorn malting plant was acquired in Aba in 2003. In October 2011, the Company acquired majority equity interests in two companies, Sona Systems Associates Business Management Limited ("Sona Systems”), with two breweries in Ota and Kudenda, Kaduna, and Life Breweries Company Limited ("Life Breweries”) with a brewery in Onitsha. Another malting plant (located in the Kudenda, Kaduna Brewery) was acquired aspartof the Sona Systeme acquisition. Sona Systems and Life Breweries were merged with the Company in the middle of 2012. At the end of 2014, an enlarged Nigerian Breweries Plc emerged from a merger with Consolidated Breweries Plc. Three breweries at Imagbon, near ljebu Ode, Awo-Omamma, near Owerd and Makurdi were added to the existing eight breweries as 2 result of the merger. The Onitsha and Makurdi locations \weresubsequentlydeveloped into Distribution Centres. Thus, from a humble beginning in 1946, the Company now has nine fully operational breweries from which its high quality products are produced and distributed to all parts, of Nigeria, in addition to the two malting plants in Aba and Kaduna. It also has Sales Offices and Distribution Centres ‘across the country. Nigerian Breweries Plc has @ rich portfolio of high quality brande: Star lager beer was launched in 1949, followed by Gulder lager beer in 1970. Maltina, the nourishing malt drink, was introduced in 1976, followed by Legend Extra Stout in 1992 and another malt drink, Amste! Malta in 1994. Heineken lager beer was relaunched into the Nigerian market in 1998. Fayrouz, the premium non- alcoholic soft drink, wes launched in 2005 while Climax herbal energy drink was launched in 2040, Following the acquisition of Sona Systems and Life Breweries in 2011, Goldberg lager, Malta Gold malt crink and life Continental Jager, were added to the brand portiollo. The Company increased its portfelio of brands in 2014 with the addition ‘of two line extensions of the Star orand - Star Lite and Star Radler. Also in 2014, as a result of the merger with Consolidated Breweries Pic, “33” Export lager beer, Williams darkale, Turbo Kingdarkale, More lager beer and 2019 | Annual Report & Accounts ‘2 malt drink, Hi Malt, became part of the Company's product offering. The Ace brand in the Reacy-to-Drink {(RtD) category was aunchedin 2018 while Tiger lager beer, an international premium brand was addedto the portfolio, ofbrandsin 208, ‘The Company has an export business which dates back to 1986. The current export destinations ore the United Kingdom, The Netherlands, United States of Americs, Canada, some parts of Africa and parts of the Middle East andasia ‘As @ major brewing company, Nigerian Breweries Ple encourages, and continues to play major roles in, the establishment of ancillary businesses. These include manufacturers of bottles, cant, crown corks, labels, cartons and plastic cretes as well as service providers Including those In the hospitality sector, distribution, transport, event management, advertising and marketing communication. ‘The Company was listed on the floor of The Nigerian Stock Exchange (NSE) in 1973.As at 31" December, 2019, ithad 3 market capitalisation of approximately N 472 billion, makingitone of the largest companiesin Nigeria by market capitalisation. It has recsived several ewards in the capital ‘market including, The NSE President's Merit Award in th Brewery Sector, The NSE Quoted Company of the Year Award, The NSE CEO's Distinguished Awardfor Compliancs and The NSE CEO's award as the Most Compliant Listed Company on The Nigerian Stock Exchange. In 2013, the Company was a recipient of the Institute of Chartered Secretaries and Administrators (ICSAN) Award for Excellence in Corporate Governance (Corporate Category) as well as the Institute of Directors’ Nigeria Corporate Governance Award, 2019, These awards are a reflection of the Company's continued commitment to excellence in corporate governance matters, Nigerian Breweriesis also a recipient of several awards and recognitions i other areas of its operations including product quality, marketing excellence, productivity and innovation, health and safety, corporate social responsibility and sustainabitty.Nationwide Presence Lagos Brewery Abebe Village Road, Iganmu P.O. Box 86, Apapa -Lagos Tel: (01) 2747400 Ext. 2734 Ibadan Brewery lbadan/\fe Rosd P.O. Box 12176, Ibadan Tel: (01) 2717400 Ext. $718 Kudenda Brewery/Malting Plant 1A, Kudenda industrial Area Plot Ad-C2, P.O. Box 6010 Kaduna South Tel: (01) 2717400 Ext. 87719 SALES OFFICES AND DISTRIBUTION CENTRES Lagos Sales Office Headquarters Annex ‘Abebe Village Road, lganmu P.O. Box6, Apapa, Lagos Tel:(01)2717400 Ext, 2816 Ibadan Sales Office KM3, Ibadan -Ife Road P.0, 8ox813, badan Tel:(01)2717400 Ext. $801 Bonin Sales Office 4, Jalo Ciose Off Alguobarsinmwin Road GRA, Benin Gty Tel:(01)2717400 Ext. 6504 Jos Sales Office 1B, Gold and Base Junction Rayfield, Jos HEADQUARTERS Iganmu House Abebe Village Road, lganmu P.O. Box 545, Lagos Tel: (01) 2717400 Ext. 1804 BREWERY/MALTING PLANT LOCATIONS ‘Aba Brewery Industry Road PD. Box 497, Aba Tel: (Ol) 2717400 Ext. 3995, ‘Ama Brewery ‘Amacke Nawo. 9th Mile Corner P.M.B.01781, Enugu Tel: (01) 2717400 Ext. 7136 ‘Awo -Omamma Brewery km 24, Owerri/Onitsna Road ‘Awo-Omamma, Imo State Tel: (O1) 2717400 Ext. 83711 ‘Aba Malting Plant Ohuru Village Ogbor Hill Industrial Obingwa, Aba Tel: (01) 2717400 Ext. 6499, ‘Abuja Sales Office Plot 413,ldu Industrial Layout Abuja FeT Tel: (O1) 271400 Ext. 6201, Kadura Sales Office Industrial Layout, Kakuri Keduna Tel: (O1) 2717400 Ext. 4801, Port Harcourt Sales Office Plot 130, Woji Road GRA Phase 2 Port Harcourt ‘Onitsha Distribution Centre 87/89 Port Harcourt Roaé P.O. Box 5417, Onitsha Tel: (O1) 2717400 Ext. 88732 2019 | Annual Report & Accounts Kakuri Brewery Industrial Layout, Kakurt P.M.B, 2116, Kaduna ‘Tel: (04) 2717400 Ext. 4717 Ota Brewery Km 28 Lago:/Abeokuta Exoressway Sango Ota Tel: (01) 271400 Ext. 86734 ebu ~ Ode Brewery Epe Road, Imagbon Vilage, Ogun State Tel: (01) 2717400 Ext. 84711 Enugu Sales Office (Old Enugu Brewery 9th Mile Corner Nsude, Enugu Tel ; (01) 2717400 Ext. 6319 ‘Aba Sales Office Industry Roed P.O. Box 496, Aba Tel: (01) 2717400 Ext. 3801, Warri Sales Office kilometre 6, NPA Expressway kpan, effurun, Warri ‘Makurdi Distribution Centre Km 5, Gboko Road ‘Makurél, Benue State vn VA2019 | Annual Report & Accounts Directors and Other Corporate Information Directors: Chief Kolawole 8, Jamodu, CER = Chairman Mz Jordi Borrut Bel (Spanish) = Managing Director/CEO Mrs. Adeyinka ©. Aroyewun = Non-Executive Mr Oluseyi. Bickersteth = Non-Executive (Mr Sijte (Siep) Hiemstra (Dutch) = Non-Executive ‘Mr Rob Kleinjan (Dutch) + Finance Director Mrs. Néidi 0, Nuuneli, MFR = Non-Executive Mss. ifueko M. Omoigui Okauru, MFR. Non-Executive Mr Atedo N.A. Peterside, CON (resigned wef 01/04/20) - Non-Executive Mr Roland Pirmer (Belgian) > Non-Executive (Mr Steven LIM. Siemer (Dutch) = Non-Executive Company Secretary: _Uaboi G, Agbebaku, Esq. Registered Office: 1,Abebe Village Road ‘ganmu P.0.0ox 545, Lagos Tel: (01)2717400-20 ‘wivw.nbplecom Registration No: RC: 613 Independent Auditor: Deloitte & Touche Givie Towers (Ozumba Mbadive Avenue Vietoria Island Lagos el: (01) 9041700 www.deloitte.com.ng First Registrars and Investor Services Limited No 2, Abebe Villaze Road ganmu Pim. 12692 Marina, Logos To (01) 2701078; 2799880 -wivwzfirstregistrarsnigeria.com2019 | Annual Report & Accounts Company Results at a Glance For the year ended 31°* December 2019 2018 % Change In millions of Naira Net Revenue 323,002 324)369 (0.8) Results from operating activities 35,255, 36957 4.) Profit for the year 16,105 19,401 (17.0) Declared dividend? 19,633 29,828 (5) Share capital 3,998 3,998 : Total equity __ 187,565 166,544 06 Data per 50 kobo share in Kobo Earnings 201 243 (7.3) Declared dividand* 233 373, 75) Net Assets 2,085 2,084 as. Dividend per 50 kobo share in respect of current year results only (in kobo) Interim dividend declared 50 60 (6.7) Final divigend proposed** 151 183, (0.2) ‘Stock Exchange Informotion ‘Stock Exchange quetation in Nairs per share 59 36 (aa) Number of shares issued 7,996,902 7,996,902 “ Market capitalisation in N: million 471,817, 683,735, (31.0) Number of employees 3,102 2,983 9.04 Ratios Declared dividend coverage (Earnings per share / declared dividends per share) 0.86 06s 323 Current assets/current labilites 0.52 0.61 (14.8) Interest coverage Interest coverage (Results from operating activities/interest expe NOTE: * Declared dividend represents the final dividend per share proposed for the preceding year (183 kobo) but declared in the curent year and the interim dividend per share deciared during the year (50 kobo).. "The Directors proposes final dividend of 151 kobo per share (2018: 183 kabo pershare) beced on the issued share capital of 7,996,902,051 ordinary shares of 50 kobo each subject to approval by the shareholders at the Annual General Meeting fixed for 23" June, 2020, \ SSCote Ee eee eC eC aa Tn ca eee TarrBoard of Directors’ Profile Chief Kolawole B. Jamodu, CFR Non-Executive Chairman CChie{ Jamodu was appointed to the Boerd of Directors asa Non-Executive Director effective the 1* of March, 2006 and. became the Chairman of the Board effective the 1" of January, 2008, ‘An alumrus of the Harvard Business School, Chief Jamody is a Fellow of the Institute of Chartered Accountants, Nigeria; 2 Fellow of the Chartered Institute of Taxation, Nigeria; a Fellow of the institute of the Chartered Institute ‘of Management Accountants, London; and a Fellow of the Chartered Institute of Chartered Secretaries & ‘Administrators, He is alzo 2 Distinguished Fellow of the Institute of Directors, Nigeria, Chief Jamodu had a stint with UAC/Unilever Nigeria Pic where he acquired varied production, commercial and financial experience before joining PZ Cussons Grouo ‘where he rose to become the Chairman/Chiei Executive and later, Non- Executive Chairmen until he wasappointed Minister of industry of the Federal Republic of Nigeria. He returnedto PZas the Non-Executive Chairman in2014, He's a former Chairman of Universal Trust Sank Plc and former Non-Executive Director of United Banktfor AfricaPlc. Heisa past President of the Harvard Business School Alumni Association of Nigeria and a past President of the Manufacturers’ Association of Nigeria {MAN}, Mr. Jordi Borrut Bel Managing Director/CEO Mr. Jordi Borrut Bel was appointed the Managing Director/CEO and a member of the Board of Directors effective the 22" of January, 2018, Mr. Borrut Bel joined the Heineken NY. Group in 1997 asa Sales Representative at Heineken Spain. He has held various commercial positions, first as Distribution Project Manager in Slovakia and thereafter as Brand Manager at Heineken France followed by a Trada Marketing role at Group Commerce in Amsterdam. He returred to Heineken Spain first as the Regional Sales Directoy, later the On- Premise tational Sales Director and subsequently the On- Premise Sales and Distribution Director. Mr. Borrut Bel was, unsil his appointment to his current position in NB, the Managing Director of Brarudi Sf, Burundi Mrs. Adeyinka 0. Aroyewun Independent Non-Executive Director Mrs. Aroyewun joined the Board of Directors effective the Pot January, 2019, Mrs. “Aroyewun is a lawyer with over 33 years legal ‘experience spanning various aspects of business and law. She isan internationally accredited mediator of the Contre for Effective Dispute Resolution (CEDR}, Uk; a member of the Chartered Institute of Arbitrators, UK; and an IMI Certified Mediator, She is currently the Director of the Lagos Multi-Door Courthouse. She is an experienced 2019 | Annual Report & Accounts trainer in Alternative Dispute Resolution techriques and was part of a team of certified trainers on the World Bank project for the expansion of ADR mechanisms and Institutions in Nigeria. Mrs. Aroyewun sits on the Governing Council of the University of Lagos; Negotiation and Conflict Management Group (NCMG) College of Negotiation; and the Edo State ‘Mult-Door Courthouse. Sheis on the panel of Neutrals of, the National Communications Commission, Nigeria Mr, Oluseyi T. Bickersteth Non-Executive Director i Mr, Bickersteth became 2 member of the Board of Directorseffective the 1" of January, 2019, Mr. Bickersteth is a Fellow of the Institute of Chartered ‘Accountants of Nigeria (ICAN) and the Chartered Institute Of Taxation of Nigeria (CTTN). He was once the Chairman of the KPMG Africa Practice as well as a former National Senior Partneraf the Nigerian Practice He is currently the Chairman of Andersen Tax, Africaand a member ofits Globel Beard of Directors. Healsosits an the Board of othercompanies in Nigeria. Mr, Bickersteth chaired a working group on “Nigerian Tac Reforms 2002 & Beyond” for the Federal Government cf Nigeria. He served on the working group on Nigeria's Vision 2020 as well as on the Technical Committee of the Federal Government of Nigeria that prepared the Petroleum Industry Bil (PIB), Mr. Sijbe (Siep) Hiemstra Non-Executive Director ‘Mr. Hiemstra joined the Board of Directors effective the 1" Of August, 2011. He served as Regional President for Africa and Middle East of the Heineken NV. Group between ‘August 2011 ond August 2015 ard hed also occupied the position of Regional President forthe Asia Pacific Region cf Heineken’.V. between 200Sand 2011. ‘Mr. Hiemstra started his Heineken career in Jaruary 1978 and held commercal, general management and technical position: in differant parts of Europa, Africa and Asia/Pacific. He retired as an Executive from the Heineken NV.Groupon, 17th August, 2015 but has remained with the group in other capacities. Mr. Rob Kleinjan \ Finance Director a ee Mr. Kleinjan was appointed the Finance Director and a ‘member of the Board of Directorseffective the 28” of uly, 2018, Prior to his appointment to the Board, Mr. Kieinjan was the Finance Director of the Brau Unicn Group, General ‘Manager Brau Union Export and Ammersin in Austria, all partof the Heineken Greup. He joined Heineken in 1996 as Financial Controller and thereafter held senior management positions in finance, contol and accounting functions in Heineken operating ‘companies in the Netherlands, Polanc, Germany, Belgium andfinland. [Board of Directors’ Profile Mrs. Ndidi O. Nwuneli, MFR Independent Non-Executive Director Mrs. Nwuneli joined the Board of Directors effective the 5” of December, 2014. Mrs. Nwuneli is an alumnus of the Wharten School, University of Pennsylvania (First Degree) and the Harvard University Graduate School of Business Administration (aster'sbegree). Mrs. Nwuneliis the Founder of LEAP Africa and Co-Founder lof AACE Food Processing & Distribution, an indigenous agro: procesting company. She is the Managing Partner of Sahel Consulting which works across Africa, unlocking the agricultural and ‘nutrition potential ofthe region. She has over two decades of private sector and international development experience. She is on the Boards of the Rockefeller Foundation, Godre] Consumer Products, India; Fairfax Africa Holdings Corp., Canada; and Alliance fer a Green Revelution in Africa Mrs. fueko M. Omoigui Okauru, MFR Independent Non-Executive Director Mrs. Omoigui Okauri was appointed to the Board of «ctorseffective the 20" of February, 2013, Mrs. Ompigui Okauru has over three decades of work experience with proven leadership ability at board and executive management levels in both private and public sectors. She was the Executive Chairman of the Federal Inland Revenue Service (FIRS) which she led meritoriously for two consecutive terms. fuekoalso served as member of the National Economic Management Team headed by the Presidentof the Federal Republic of Nigeria.She currently the Managing Partner of Compliance Protessicnals Plc, a consultancy company and also sits on the Boards of Central Securities Clearing System Plc, ReStraL Lid, Seplat Petroleum Development Company Pic and MTN Nigeria ‘Communications Pl. Mrs. Omoigul Okauru is a Commissioner of a non-partisan body, the Independent Commission for the Reform of International Corporate Taxation (ICRICT) and Chairman of the Lagos State Employment Trust Fund, In January 2019, she was sppointed a Member of the Technical Committee (represerting the private sector) constituted by the Federal Government of Nigeria to work on the datails and Implementation of the new Minimum Wage for Nigerian workers Mr. Atedo N. A. Peterside, CON Non-Executive Director Mr. Peterside was appainted to the Board of Directors effective the 21" of August, 2008 and resigned effective the LV" of April, 2020. Mr, Peterside'is the founder of Stanbic IBTC BankPlcand the Chairman of Cadbury Nigeria Plc. He is also the Chairman and Founder of both Anap Business Jets Limited and Anao Foundation as well as the Chairman of Endeavour High Impact Entrepreneurship Ltd/Gteand ArtX Logos Collective Limited. He was the Chairman of the Committee that crafted the first Corporate Governance Code for Public Companies in Nigeria 2019 | Annual Report & Accounts Mr. Peterside recently set up the Anap Foundation COVIO- 19 Think Tank, which he chairs. He also sits on the Boards of Standard Bank Group Limited, The Standard Bank of South Africa Limited and the West African Advisory Board of The Princess Trust International. He is the Alternate Vice Chairman (Private Sector) of the Nigerian Incustrial and Competitiveness Advisory Council, which is chalred by the Vice Presidentof the Federal Republic of Nigeria Mr. Roland Pirmez Non-Executive Director ‘Mi. Pirmez joined the Board of Directors effective the 2" of September, 2015 shortly after becoming the Heineken Regional President for Africa, Middle East and Easter Europe. He started his Heineken careerin 1995 and hasheld general management positions within the Heineken Nv. Group in Africa, Asia and Europe, including the position of the Regional President for Asia Pacific, Mr. Steven L. M. Siemer Non-Executive Director Mr. Siemer became a member of the Board of Directors effective the 25" of October, 2018. He i currently the Regional Finance Director for Africa, Middle East and Eastern Europe at Heineken N,V. Mr. Siemer jcined the Heineken N.\. Group in 1990 as Marketing Controller In Heineken Netherlands and thereafter held senior management positions with finance, distribution, business development anc marketing inSpain, Austria, Irelandand The Netherlands. Uaboi G. Agbebaku, Esq. Company Secretary Mr, Agbebaku was appointed as Secretary to the Boord of Directors and the Legal Adviser effective the 1" of January, 2008, He joined the Company in January, 2003 2s the Legal Affairs Manager. Before then, he was in private practice withthe law fitm of David Garrick& Co. He isa Fellowoof the Institute of Chartered Secretaries & Administrators of Nigeria. Mr. Agbebaku isalsothe Company's Legal Director.ee oigwe Dre rset terior oie erent otra ene ere en Cee hae alt cc seep a Wee tere esr gece tyENJOY RESPONSIBLY. NOT FOR SALE TO PERSONS UNDER THE AGE OF 182019 | Annual Report & Accounts Notice of Annual General Meeting wore: NOTICE 15 HEREBY GIVEN that the 73!" Annual General Meeting of Nigerian Breweries Pic "the Company") will be held in the Star Academy, NBs ‘Accommodation Centre, Plot 14, Abebe Village Road, Iganmu, Lagos State, Nigeria, on Tuesday, the 23 of June, 2020 at 10.00 a.m. for the followingpurposes: A ORDINARY BUSINESS 1 Tolay before the meeting, the Report of the Diractars anc the Statement of Financial Position as at 31* December 2013, together with the Income Statement for the year ended on that date and the Reports of the Independent Auditor and the Audit Committee thereon, 2 Todeclarea dividend, 3 To re-elect Directors including Chiet Kolawole B. Jamodu, who is over 70 years old, special nctice to that effect having been received by the Company in accordance with Section 256 of the Companies and Allied Matters Act, Cap. C20, Laws of the Federation of Nigeria, 2004. 4 Ta authorise the Directors to fie the remunerationof the Independent Auditor. 5 ToelectmembersoftheAudit Committee. 8, SPECIALBUSINESS 6 Tofixtheremunerstionof the Directors. Dated the 20"*of May, 2020. By Order of the Board, UaboiG. Agbebaku, Esq. CompanySecretary FRC/2013/NBA/00000001003 Iganmu House Abebe Village Road ‘ganmu, Lagos Nigeria a » 4 ° 4 ® ” Due to the Cou 39 pandemic andthe atendant drectes led ty celerant ‘thers nail Ganorngsed sea onthe mene norte atpconsels father (nce more than 20 povorsl sharholdasatendance st tis Aral ener Meche AG) sal be by Pray one acotdance ith th Corte ‘ais Convnton "Gunes sa Moding Anns! Gerera Yaegs (AG) of ubleCompanesUsng Pree shoreolderenttedtostendanévetetthe Metagcanspponiaproytoatend {nd vote a ha/nerfe tnd The pny neede at bes sarhols: consequent itenierssroreqiedts apps s prow eee rom the flowin pro 0 Iepresent than at he Mesirg (0) Chie Kolawole 8 Jama, F& (Charman) () Iie Sor Bert bel (Manage Diector/CEO} (e) Nes: Nei ©. Monel Independent ton recat Dr etr}) Ce Tmt A Adesyan (horeholers Fepresenatne, aust committee) Suny mwesu (nortysharvoler lis Mathew Akin ior shareoleer) (g) Mi. Nornah wah (Mineiy ‘arotldar| andthe dobimpe Shes, nary Sharada, Fortheappoinmentobe aie te urpoes ofthe Mesing, t dlycomolited How lrmeuhich rust bafepostesat heaceof We Rept rst Regsvarsné bnvestr Steves nites, ho 2, tbe Vilage Ranges Lagos State sent tal ts lnforatregntrarmigctcom or eousress@foegsanniges Pot ter tan Flay, the tho une, 2020 A blank Prony Fora incudea the S019 Innualtepent#enint whieh il ob ave nha oman wae ‘emesbple om ard that of the Registrar, wu esttepstraanigera com The Company hse madeeangrnents ttc! str dy tobe ad he ony fhacaordancewith secbon3s0(5)oftheCompanis and lied Mater A Cap 20, Saree fr elghen a2 member af the Aude Comte Or ane noe setingt ate omens becompy eon tne tah er one 2} total dnd of 6,07,73,28 [Sttoon ition Saverty Thre Mion Sevan hundred and seventy TveeTotsate One runaresand Twenty Tee taal, that, N2.04 Two haa andOne obec) per sharetr te 2018 nana yer Pas bean ‘acommandes by the 637 for appeal ving earier pad an ein ‘he Fina dividend wil be N12,075 322,067 Twelve Billo, Seventy Fie Milion, Tree inred sna ant eT shy Sonor Nay hat WEA Ee Hara snd ty One fob) er share Tha etal dagen ore yor campo of 1110,07,773123 fn in, Serent Tre Milton Seven Mnered and Seventy ‘Thre Towson, Ore Wanered and Tent The Noa oi romthe asso he {er ar N06 208,600 (Bian Nara on rome Capa loner pra the propored fal dividend % approee, it il be subject to duction of 34 of une 2070, toa Shreolders whose aes appeared the Companys kegiter of embers Rese atiectoe of basnasion the” of March 2020.The Regt was coseaietweoy ef March 220 ante aol Wate, 220, smuanewouoes mort ToRSK QUESTIONS ‘shorelderhs pi task ustion porto the AGM. uch aes shoutbe ‘usmisedinucngrntheComosw Sremtryotleethan seek setoreshe de thence thecmalaasress usheesihernahencom, [LECTRONICVERSICN OFTHE ANKUALREPORTAND ACCOUNTS env and evrlord vs the Cenpen/a rset wrecen ac tothe Regist wvsregstasigea. com. LesREAMNGOFTHEAGM ‘he AGM wil be sronned ve onto. Thi wil enable Shareholders and ther miewrtstneolderomentnesbeateangene morn pysalyto so Depart Uf the proceedings The hk fo he Ie stesnng wit be made vale onthe omer noche aural com andy thanapivr resect, ‘hareoiders io ae yet compet he eden Form or ho eed uate ther rzaes an rawr tank accounts ereuged socom thee Dbend Farm ‘con be deracee/dowrlonse Wom tous Report and pou wl at from the website of he Company, waewibplecam or that ofthe Rela ‘huferragitrarngerin on The compites om shoul bs retuned tt Regn at ivouorSeraces Umited Pot, Abbe Vilage Ree, ep, Boe ate UNcLARNED BMD dndratirnesto aegis Theat ofa oncames Sens be ercaated 9 $lsfsten sorenoirs ae thevae aden ocoaet heen Fhe {ndlstor Sri ne Nod Abeta Rove gaan, aps Sate rte Eomail adgress, nlo@Arstregistratsnigeria.com or toutinse@trstregeirenganasom to vesove ary isi they may Mave th ‘imine he ddens. ( i AENJOY RESPONSIBLY. NOT FOR SALE TO PERSONS UNDER THE AGE OF 18.Chairman's Address Chief Kolawole B. JAMODU, CFR ‘Chaleman, Board of Directors y dear fellow Shareholders, distinguished ladies and, gentlemen, | am excited to, once again, and on behaif of the Board of Directors, ("the Board”) welcome you to the 74 AnnualGeneral Meeting AGM”) ofthis great company of ours, Nigerian Breweries Pc, Its also my privilege to present to our Shareholders, the 2019 Annual Report and Accounts, including my address. ‘ill, as usual, do a quick review of the operating environment during the year under review, focusing on how businesses were impacted, then review our Company's performance during the year and condude by briefly ooking alieadto the expectations or the year 2020. 2019 Operating Environment ‘The operating environment in 2019 was not materially different from what we have seen in the last few years, It was another challenging year for businesses, ‘The startof the year wes dominated by pre-election and election activitiesaround the 2019 general elections. Nigeria continues to male strides in the deepening of our democracy with the ‘conclusion of the elections and subsequent inauguration of governments at the Federal and State levels. Stability in government and governance remains a major factor in thegrowth of any economy and by implication, the businessclimate, (On the macro econamic front, the economy continued on 3 moderate growth path, with the Gross Domestic Product (GDP) recording a full year growth of 2.27%, an improvement on she 41.91% growth recorded in 2018. While thenon-ol sectorwas the ‘river of growth inthe recent past, it was the turn of he olf sector in 2019, expanding by 4.59% (0.59% in 2018). The non-ol sector con the other hand was stagnant, expanding at 2.06% in the year under review (2% in 2018). The oil sector growth was boosted by an increase in oil production output which averaged 2.01 milion barrole per doy, up fre 19 million barrels per day in 2018. Manufacturing, which grew slightly by 0.77% (2.09% in 2038), contributed te the stagnation of she non-oll sector, with our sub sector, Food, Beverage and Tobacco, growing by 2.17% (2.93% in 2018). The rate of growth in the economy however, continued to ‘trend below the population growth rate of about 2.6% thereby creating challenges of per capita income and unemployment. The GDP growth has not translated to higher consumer purchasing. power. One of the positives for businessesin 2019 was a gradual lowering Of bank lending rates. The average lending rate was about 15% ‘which however remained high. High cost of funds continues to hamper businesses. The expectations are that the trend witnessed in 2018 will continue leading to even lewer lending rates with positiveimpact on business proftabilty. The stability in the Foreien Exchange market was sustained in the course of the year although the fear of a devaluation of the Naira pervaded the. usinessworld throughout the yoarInlatcn rato remained stale but at double digts with sgns of upward climb in the closng monthsoftheyear In 2019, low purchasing power, growing unemployment and Poverty rates, poor state of social infrastructures including road and power supply, multiple taxation, increasing levelsof insecurity and challenges with getting imported items out of the Lagos port, remained the bane of businesses, particularly the Manufacturing Sector, Majority af companies in the sector struggled with dwindling profits thereby further raising the risk of business sustainability. ‘The Nigerian capital market ended in the negative in 2019 and was ranked a5 one of the worst performing markets in Africa, having, (gi yChairman’s Address (Cont’d) recorded a 15% decline in the All Share Index. According to The Nigerian Stock Exchange (NSE), the negative performance was influenced by the macroeconomic landscape, fiseal and monetary poliey direction, a wait-and see attitude due to trends in Foreign Portiolio Investment land concerns over the fate of the Naira, The NSE Consumer Index was the worst hit with a year-on-year decline of 21% The market capitalisation of our equity was not sparedas we ended the year with a value of 8472 billion as apainst N684 billion recorded at the end of 2018. The Brewed Product Market In June 2029, the Federal Government implemented the previously announced review of the Excise Duty rate, which Faised the rate further from 30 kobo per centilitre (W30.00 per litre) 0 35 kobo per centiitre (N35.00 per litre). Due to ow purchasing power, it was difficult to pass on the increased cost to the consumer, This ed to additional cost burden on companies with impact on profitability. Added to the already cifficult operating environment, the entire Brewery indusiry recorded a loss in the Third Quarter (uly to September) of 2019, being the quarter that followed the implementation of the new Excise Duty rate. It was the First time in about twenty years that the entire industry would record a loss as none of the main players recorded a profitin thatquarter. Review of Operations Despite the challenges in the operating environment, we remained committed to Winring with Nigeria. We stayed on course with our strategy, focusing on our innovation agenda, defining 2 winning Route-to-Market, improving End-to-End productivity, developing our people and ensuring that sustainability eemains atthe core of everything we do. We continued to be innovative in keeping our brands constantly relevant and appealing to the needs of our differant consumers. Nigeria's foremest lager brand. Star, the Shine Shine Bobo, was refreshed in 2019 with a reformulsted smoother taste ond 9 bold new look. It wes accompanied by 2 new advertising campaign featuring Burna Boy, the brand’s ambassador. Star lager is now available in craugnt in addition to the bottle and can offerings. We blazed the trail in sleek can packaging for lager with the double introduction of the Heineken® 33c| sleek and the Tiger 33c! sleek can, Still on innovation, Goldberg lager was relaunched with a new look, a raformulated smoother taste and new advertising campaigns with Olamide os the brand's ambassador. A33cl ean was added to the Goldberg product offering. Other innovations includeda 45cl bottle offering for Legend Extra Stout, a 50c\ con offering for Goldberg lager and a 33cl can offering for Life Continental lager. Connecting with the consumer is the driver for al ourbrand activities. Our consumer facing activities during the year Included giving an opportunity to loyal consumers of Heineken® ager ond our supportive customers to experience the thrils, frills and giamour of the 2019 UEFA Champions League (UCL) final in Madrid, Spain. Prior to that final in Madrid and courtesy of Heineken® lager, the UCL Chompions Tour led by Carlos Puyol, the legendary Spanish footballer, made itsstopin the cities of Lagos and Uyo. Also, we maintained our support for thecreative industry with the Heineken® Lagos Fashion and Design Week and the Dasign Fashion Africa events. Together with one of our business partners end building on ourlong history of support for the ‘music industry by the Star brand, we launched a talent hunt programme, Access the Stars, which will discover music 2019| Annual Report & Accounts talents and propel them into the world. We sustained the life Progress Boaster empowerment programme and the HiLife Fest talentshow, twe activtiesof the Life Continental lager brand. We also sustained the “32” Export City of Friends and friends Connect parties, the Gulder Red Night parties and the fourth edition of the Malting sponsored \NickFest, the increasingly popular Nickelodeon family festival. Other activities included the continuation of Goldberg's Ariva Repete and Ito Fag) music carnivals, more support for the film industry through the sponsorship of stage plays and movie premieres by Amstel Malta as wel as, the African Cup of Nations and FIFA Female World Cup campaigns by Star lager and Amstel Malta respectively, leveraging on our partnership with the Nigeria Football Federation. We also brought innovations into our systems and ways of working, Inciding ourRoute to Market. Taking advantage of the digital age, our products are now available for purchase via online channels; our distributors ace equally being introduced to the e-commerce space to offer them an additional channel of transacting business with their Customers. Our investments in digital and technology will drive more seamless, convenient and agile ways of doing business as well as give us the opportunity to gather more ingghts that will enable us to react faster to changing consumer needs. We continue to seek innovative ways in aur End-to-End process with a view to improving our efficiencies and becoming more effective in how we work. Cost ‘management remained an integral part of everything we die during the year under review; the Every Naira Counts, programme and other cost consciousness initiatives Contributed to a lower Cost of Goods Sold during the year: Beyond the brand and processes, we invested in our production assets thereby ensuring that the faciities are kept upto date with technology. Thisallows usto constantly ‘meet the demands of our consumers, nt justin terms of product avaiiability but also in terms of the right quality; it also ensures that our operations are run in an environmentally sustainable way. “The focus of our sustainability agenda includes promoting health and safety, prometing responsible consumption, growing with communities, protecting water resources, reducing carbon emission and courcingina sustainable way. In 2019, we joined forces with others in the Beer Sectoral Group (BSG) of the Manufacturers Association of Nigeria and partnered with the Federal Road Safety Commisson (FRSC) to launch the SMASHED programme. The programme is aimed at discouraging underage drinking and abuse of alcohol, The Don't Drink and Drive campaign, another collaboration between BSG and FRSC, was sustained. Together with other companies in the Food and Beverage Recycling Alliance, we embarked on massive ‘awareness drives to encourage the reduction, reuse and recycling of plastic pockaging materials. For more on our sustainability and other social intervention initiatives in 2013, please see pages 43 and 44 of the Annual Report an ‘Accounts, People remsin our biggest asset. People development is a key pillar of our strategy and investment in its part of our ways of working. We continue to take advantage of the HEINEKEN NX. expaviation programme to develop our people. At the end of the year under review, we had thirty ff (miChairman’s Address (Cont'd) ‘eight Nigerians working in diferent HEINEKEN operations ‘across the globe, far mare than the number of expatriates ‘working in Nigeria. The Company continues to benefitfrom the skills and experience that theso Nigerians bring back to the business and to the country. We appreciate HEINEKEN NA. for the expatriation opportunity which also allows us tobenefitfrom the expertise and experience of expatriates that are seconded to Nigeria, Still on people development, more than two thousand three hundred employees underwent functional, leadership or soft shils training during the year. Investment in capacity buidingis necessary te keep our employees up to date with contemporary skills and knowledge thereby equipping them to perform at the highest level Empowerment programmes in place include stretched projects and short term assignments. In 2019, the Board approved an Inchision and Diversity Policy for the ‘Companywiththe eim of reinforcing the power of diversity and an inclusive environment where everyone matters and has an equal opportunity to contribute to the success of the Company. \We sustained the collaboration with the industrial Training Fund and the Nigeria Employers’ Consultative Association in the development of manpower for the Nigerian industrial sector, Another set of twenty young Nigerians graduated from the programme in 2019. Since the start of that collaboration in 2010, mote than three hundred students have graduated from the programme which includes training in computer technology, mechanical ‘engineering and automation Majority of those graduates havebeen absarbed in the Company, ‘Our passion for quality and excellence resonates in everything we do. In 2019, we received honours and ‘awards forthe quality ofour products, our innovations and ‘ur operations. Our commitment to good corporate governance was recognised by two different organisations. The Institute of Directors, Nigeria honoured us with the 2019 Corporate Governance Award while we received from the Institute of Chartered Secretaries & ‘Administrators of Nigeria, an award for Excellence in Corporate Governance. Others included the Best Kept Industrial Premises Awards by the Manufacturers ‘Association of Nigeria (Apapa Branch}, the National Productivity Centro award far Productivity and Innovation ‘as well as Jobberman Research award for being one of the Best Places to Work. ‘Awards and recognitions for our brands included the 2019 Advertisers Association of Nigeria (ADVAN) Awards for Excellence which were received for Heineken*sleek can (product packaging), "33" Export (consumer experience), ‘Amstel Malta |\campaign of the year), Goldberg (consumer Promotion and predict packaging) and Life Continental (experiential). The Company received a special award at the Nigerian Technicions and Artisan Conference for Enterprise Supoort for Artisans. This was in recognition of the activities of Goldberg in support of artisans. To underline our World-Class performance and our passion for quality, three of our lager brands, Star, Gulder and Goldvera, each recived the Monde Selection Gold Avard inBelgium, Company Results The challenges that businesses in general and the brewed product sub-sector in particular faced in 2019 were mentioned earlier in my address. Despite the challenges, 2019 | Annual Report & Accounts we were able to record positive resultsat the end of the year, although hugely impacted by the aforementioned factors. Our Net Revenue was 8323 billion, slightly lower than the N224 billion recorded in 2018, Results from Operating Activities (Operating Profit) was N35 billion as against N37 billion in 2028, due in part to higher Excise Duties and other operating costs. Due to @ much higher net finance cost, Profit After Tax was N16 billion compared to N19 tillion recorded in 2018, The increase in net finance cost was due to actions taken to reduce the backlog of foreign payables which had accumulated when there was scarcity of foreign exchange to meet those obligations. Dividend Fellow Shareholders, for the financial year ended 32" December, 2018, the Board is pleased to recommend for your approval, the payment of a total dividend of N16 073,773,123 (Sixteen Bilion, Seventy Three Million, Seven Hundred and Seventy Three Theusarsi, One Hundred and Twenty Three Naira onl), that is, N2.04 (Two Naira and One Kobo) pe share. The proposed total dvidend is mace Up of N20,073,773,123 [Ten Bilion, Seventy Three Million, Seven Hundred and Seventy Three Thousand, One Hundredand Twenty Three Naira only) from the profits for the year and_W6,000,000,000 (Sic Blon Naira only from the Company's ploneer profits rom prior years. In October of 2019, the Board approved the payment of a total interim dividend of N3,998,451,026 (Three Billion, Nine Hundred and Ninety Eight Million, Four Hundred and Fifty One Thousandand Twerty Six Naira only), that is,NO.50 (fifty kobo) per share. The interim cividend was paid in December, 2019. Inthe ight of that, the final dividend being proposed will be N12,075,322,097 (Twelve Billion, Seventy Five Million, Three Hundred and Twenty Two Thousand and Ninety Seven Naira only), that is, ¥1.51 (One Naira and Fifty One Kobo) per shave. Please note that f approved, the final dividend will be subject to the deduction of withholding tax at the appropriate rates and would become payable by the 24" of June, 2020 to Shareholder: recorded in the Register of Members 2s at close of business on the 4" of March, 2020. Unclaimed dividend continues to be an issue in the Nigerian Capital Market. Thus, | cannot get tired of urging every Shareholder that is not yet on the e-cividend platform to do 50. twill helptarecuce in theshort term, and eliminatein the longterm, theissue of unclaimed dividend. in addition, it will help you to receive your dividend speedily and at all times, wherever you may be. Further, the Securites and Exchange Commnission (SEC) has directed thet dividend warrantsshould no longer be printed. As usval, an e-cividend form for your Use is induded in the Annual Resort and Accounts. Please complete and return it to the Registrar (First Registrars & Investor Services Limited). The form is also available for download on our website (aww-nbplecom) and that of the Registrar (www. firstregistrarsnigeria.com), Board of Directors There was a changein the Boerd after the last AGM. Mr; Atedo NAA. Peterside, CON resigned as a Director of the Compzny effective the 1* of April, 2020, to enable him focus on fulfiling the objectives of the Anap Foundation COVID-19 Think Tank. which he set up as part of the fight against COVID-19. Mr. Peterside joined the Board on the 211 of August, 2008 and was an invaluable contributor to the various progress made by the Company during that time. On behalf of the Shareholders, Board, Management and all employees, the 19 “AChairman‘s Address (Cont'd) Company is grateful to Mir. Peterside for his services to our Company and wish him the very best in his other endeavours, Three Directors {including me) willretie at the forthcoming AGM and being eligible, we have offered ourselves for re- election. As required by Section 256 of the Companies and Allied Matters Act, Cap C20, Laws of the Federation of Nigeria, 2004, | have given tothe Company, a special notice ‘of my age (more than 70 years old), Other Directors seeking, re-election are Mr. Sibe (Siep) Hiemstra and Mrs. Ndidi 0. Nwuneli, MR Looking Ahead: 2020 Operating Environment For the first time in a very long while, the Federal Government's budget forthe year was approved and passed into law before the commencement of the year in question, ‘We commend the Federal Government and the National Assembly for this achievement and look forward to. the speedy Implementation of all aspects of the budget with a view to stimulating the growth and development of the economy. The budget is to be financed partly by the introduction of new texes and in furtherance of thet, the Finance Act, 2019 was passed at the start of the year 2020. The Act has, amongst others, raised the Value Added Tax (WAT) rate from 5 to 7.5% and introduced some tax relief measures for small and medium scale businesses, ‘While we were all trying to adjust to the new VAT rate, the entire world wae stunned by the outbreak of the Coronavirus/COVID-19 pandemic. Thereis hardlyany part of the world that has not been affected bythe pandemic which has so far, resulted in hundreds of thousand ceaths and millions of people being infected. The impact ofthe virus © being felt in diferent aspects of the human race inciuding interational and local businesses as well as by Governments and World Bodies to the extent that staying alive has become the Number 1 target or goal for the year, 2020. Already, the international crude oll price has been severely hit with the Federal Government having to drastically revise downward the 2020 budget. COVID-19 has impacted the earnings and profitability of companiesas can be seenin the published Quarter 1 results of many manufacturing companies in particular. With the increasing number of Infected persons and death coupled with restriction of movements across the country, the remaining part of tha year lookssetto be even morechallenging, Let me applaud the Government at both the Federal and ‘State levels for the concerted efforts, alongside the private sector, to ight the pandemic. Indeed, all hands must remain ondeck tobe able todeal withthe crisis Brewed Product Market Followingthe introduction of anew VATrateof 7.58, players in the brewed product industry have implemented a price increase to take care of the new rate while simultaneously embarking on trade discounts and other forms of promotions. Thus, the expectations arethatthe competitive landscapewill become even more aggressive with impact on profitability. Due to COVID-18 and the need to deal with the ‘risisthat came withit, tough actions have been taken by the Government, including restriction of movements and a temporary Shutdown of the hospitality sector. These necessary measures have naturally impacted heavily on our sector and would continue to impact ituntil the crisisis put under control. this moment, the hezlth and safety of our 2019 ‘employeesremainparamount. ‘Winning with Nigeria remains our long tesm focus which alse means a commitment te delivering long-term sustainable value to our Shareholders, The Board is confident that we have the right strategy to de that and remain the market leacer especially when things begin to return tonormal ‘Conclusion In concluding, let me. on behalf of the Board. Management and other employees, thank you, our ‘esteomed Shareholders fer your unflinching support ‘through the years. Together, we have kept the Company on top for more than seventy years and I am confident that together, we will continue to be on too in the foreseeable future | thank our parent company, HEINEKEN NW,, for its unwavering support for the Company and unshaken belief In Nigeria. The confidence with which it joined others to establish this Company more than seventy yoars ago, remains and continues. | willlike to use thisopporturity to salve a special thanks to Mr, Jean-Francois van Boxmeer, the Heineken NV. CEO and Chairman of the Executive Board, who will be bowing out at the end of May 2020. During his fifteen years at the helm of affairs, Mr. van Boxmeerhelped to grow the Heineken businessacross the globe including facilitating the acquisitions and mergers that our Company undertook in the last decade. His support for our Company was tetal and it is well appreciated. We welcome his successor, Mr Dolf van den Brink, himselfa therough bred HEINEKEN person. With his ‘twenty tno years career taking him todifferent HEINEKEN, ‘operations acioss the world includingfrica the incoming CEOs well prepared to step n and take HEINEKEN NS, evenhigher. ‘To our other stakeholders, some old and others new, | say thank you for your support. These include our transporters, distributors/customers, consumers, suppliers, agencies, professional advisers, the Government (and agencies of Goveriment) at all levels, and our host communities. We count on your continuing Support. At the start of the year, we celebrated our transporters and distributors for their contributions to our performance in 2019. Over two hundred and forty awards ‘and recognitions were given aut to these trade partners, ‘We look orward to their continuing suopor:. | equally ‘thank my fellow Board Members, the Management Team and every employee for their individual anc collective contributionsfor the year gone by andiook forward to ever more of hatin year 2020. Aboveall Igive glory toGod | enjoin each of us to please stay safe and follow all measures being put in place by Government to stem the spread of Coronavirus. ‘Thankyou and God bless you. M Chief Kolawole 8. JAMODU,CFR ‘Chairman, Board of Directors Annual Report Accounts vn VAFind happiness in bemoans (heal ates2019 Annual Report & Accounts Directors’ Report The Directors are pleased to present thei annual report togettier with the audited financial statements of the Company for the year ended 31"December, 2019, 1. Legal status Nigerian Breweries Pc, 2 public company qucted on The ‘Nigerian Stock Exchange, was incorporated onthe 16th of Novernber, 1946, under the name, Nigerion Brewery Limited, The name was changed on the 7° of January, 1957, to Nigerian Breweries Limited and thereafter 10 Nigerian Breweries Plein 1990 when the Companies and Aled Natters Act ("CAMA") of that year cameinto effect. The Company is a subsidiary of Heineken NLV. of the Netherlands, which held approximately 56% interest in the equity of Nigerian Breweries Pleas at 31" December, 2019. 2. Principal Activities During the year under review, the principal activities of the Company remained brewing, marketine and seling of lager, stout, non-alcoholic matt drinks andsoft drinks, 3. Progress Trust (CPFA)Limited Progress Trust (CPFA) Limited was incorporated by the Company and Is a duly registered Closed Pension Fund ‘Administrator. Itssole activity isthe administration of the pension and the defined (employer's contribution) Bratulty scheme for employees and former employees of Nigerian Breweries Fic. See Note 15 to the financial statements, ‘Mr, Jordi BORRUT BEL Managing Director/CEO. 4. The Nigerian Breweries-felix OhiwereiEducation Trust Fund The Nigerian Breweries-Felix Ohiwerei Education Trust Fund was incorporated by the Company and is a sporsored charitable Trust. The proceeds rom its investments are disbursed solely for thepromotion of education. SeeNote 32 (c) tothefinancial statements 5. Benue BottlingCompanyLimited Following the merger with Consolidated Breweries Plc, the enlarged Company acquired an 89.3% majority equity interest in Benue Bottling Company Limited (BBCL). The subsidiary, BBCL, is an entity with no business activities that holds land, buildings andsome idle production assets, The financial position ofthe subsidiary has been consolidated in thesefinancial statements. Atthe time of theacquisition, al productive assets wereimpaired, 6, 234Storestimited 234 Stores Limited is a subsiciary of the Company which was incorporated to explore opportunities in the route-to market. The subsidiary was operated as a plot scheme during the year under review. See Note 15 (c}to the financiat statements. Review of Operations 12029, the results of the Comparw were adversely impacted by the increased excise duty rate which came into effect during the year coupled with a challenging operating environment. A summary of the results for the yeer is shown below: 2019 2018 % 8’ millions # millions ‘Change Net Revenue 323,002 324,389 (oa) Results From Operating Activities, 35255 35,957 (46) Profit Before Taxation 23327 23,360 (205) Taxation (7,222) (6,959) (275) Profit after Tax 16,105 13,401 (79) rz