Seni Adetu, Managing Director /CEO. Lisa Nichols, Finance/Strategy Director. Sesan Sobowale, Corporate Relations Director

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2 Seni Adetu, Managing Director /CEO Lisa Nichols, Finance/Strategy Director Sesan Sobowale, Corporate Relations Director

3 AGENDA ITEM PRESENTER SLIDE Introduction Seni Adetu - Company Overview Seni Adetu 4 Market and Performance Overview Seni Adetu 8 Financial Performance Lisa Nichols 11 Highlights of the year Seni Adetu 16 Strategic priorities Seni Adetu 24 Conclusions Seni Adetu 26 Q&A Sesan Sobowale 28

4 COMPANY OVERVIEW

5 OUR COMPANY Guinness Nigeria is a part of Diageo the world s foremost premium alcoholic drinks company. We have been in Nigeria since 1962 with a strong pedigree operating from four sites - 2 in Lagos (Ogba & Ikeja), Benin and Aba. Strong portfolio diversity including alcoholic and non-alcoholic beverages covering a wide range of consumer segments and choices Commitment to significant investment to deliver long-term growth Major investments in capacity expansion Almost doubled sales in 4years Largest Guinness market in the world in net sales Strong values: Performance culture, developing talent, positively impacting the communities in which we operate, strong governance and ethical standards

6 OUR BRANDS We have a diverse portfolio of brands that are adored by Nigerian consumers. These include: STOUT RTD NON-ALCOHOLIC LAGER - Guinness Foreign Extra Stout - Guinness Extra Smooth - Harp Lager - Dubic Lager - Satzenbrau - Smirnoff Ice - Snapp - Malta Guinness - Malta Guinness Low Sugar - Top Malt

7 OUR AMBITION Guinness Nigeria Plc is the best performing, most trusted and respected consumer products company in Nigeria Employer of Choice Superior Total Shareholder Returns Most reputable in the Community

8 MARKET & PERFORMANCE OVERVIEW

9 Economic indicators: GDP has been growing and averaging 6% - 8% in past two years Nigeria to remain in top quartile of GDP growth from Inflation Rate averaging 10% Y.O.Y Opportunities: Rapid growth of emerging middle class: (20m living on $2-4per day) Positive economic fundamentals in the medium term Election in 2015 likely to encourage spending Power sector privatisation to improve energy supply Challenges: Pressured Consumer Discretionary Income leading to re-prioritization Declining government revenue due to lower output Security challenges especially in the Northern parts of the country Source: Euromonitor International world Economic outlook ; Nigeria Bureau of Statistics

10 KEY DRIVERS OF PERFORMANCE Performance Overview: Growth % Net Revenue 5% Operating Profit 6% Profit After Tax -17% Market softness: De-prioritization of beer by consumers, declining discretionary income, down trading leading to faster growth of value brands, government spending behind plan, Malt market declining at a lower rate Investment in capacity : Flexibility in meeting changing consumer trends, channel is still logistically expensive to service, Increased interest cost RtC competitiveness : Invested in additional sales force to improve outlet coverage, GDCs deployed to over 200 areas in Nigeria Representation in large/growing segments: Innovation of value brands, RTD s exploitation, Low sugar malt innovation

11 FINANCIAL PERFORMANCE

12 GN PLC F13 RESULTS COMPREHENSIVE INCOME Q4 F13 Growth FY F13 Growth Nbillion % Nbillion % Gross Revenue % % Net Revenue % % Cost of Sales (18.2) 13% (66.4) 8% Gross Profit % % Marketing & Distr. (6.6) 18% (26.0) 6% Admin Costs (2.9) 28% (10.3) 9%

13 GN PLC F13 RESULTS COMPREHENSIVE INCOME Q4 F13 Growth FY F13 Growth Nbillion % Nbillion % Operating Profit 6.8-9% % Financing charges (1.1) 52% (3.6) 138% PBT % % Tax (1.3) -21% (5.1) -17% PAT % % K K EPS % %

14 DRIVERS OF PROFIT BEFORE TAX Drivers of PBT decline F13 vs. LY (Nbillion) Capacity expansion depreciation Expansion investment PBT Price Volume CoGS Mktg & Admin Other Financing 2013 distr. costs income PBT 1

15 GN PLC F13 RESULTS - FINANCIAL POSITION FY F13 FY F12 Movt Nbillion Nbillion Nbillion Non-Current Assets Inventories (0.8) Receivables Cash (1.6) Total Assets Current Liabilities (51.3) (45.2) (6.1) Non-Current Liabilities (23.7) (22.2) (1.5) Equity (46.0) (38.6) (7.4) Net Equity & Liabilities (121.1) (106.0) (15.1)

16 HIGHLIGHTS OF F13

17 HIGHLIGHTS OF F13 Brands Innovation Route to Consumer Supply Reputation People

18 18 HIGHLIGHTS - BRANDS Guinness Harp & Dubic Malta Guinness Smirnoff Ice EPL broadcast Sponsorship Fly With The Eagles Campaign AFCON Campaign and Jersey Tour Made of More campaign Promoting healthier living Competitive pricing Distribution drive and consumer experience Partnership with football Improved media and OOH visibility Harp rhythm unplugged Smirnoff Midnight Circus events Distribution drives

19 19 HIGHLIGHTS - INNOVATION H1 Malta Guinness Low Sugar Launched nationally in May F12 F13 saw weighted distribution grow by double digits Snapp Launched in Lagos and 4 other cities Abuja, Benin, Port Harcourt and Calabar Snapp sleek cans launched in Dec 2012 Snapp Rolled out nationally Refreshed advertising Dubic New green bottle Regional expansion H2 Top Malt Pack redesign for national re-launch

20 20 HIGHLIGHTS - ROUTE TO CONSUMER Cold & Events GDC Branding Guinness Distribution Centres (GDC) driving rural redistribution Roll out progressing well Sales coverage Additional sales vans Maximised opportunity in Key Account. Increased visibility via Kitting of Bar men Investments in project cold Special events supporting social events driving convenience & visibility Distributor warehouse branding Flagship outlet branding

21 HIGHLIGHTS - SUPPLY Gas / Diesel Generator and Boilers CO₂ Plant and Loading capacity 21

22 OUR WORK IN THE COMMUNITY Quality & Safety Harp Lager Beer & Malta Guinness won the 2012 Monde Gold Quality Award Zero LTA award by Nigerian Employers Consultative Association (NECA) and the Nigerian Social Insurance Trust Fund (NSITF). Project DIY: skills training for children's in the orphanages. The Social Enterprise Report Awards (SERA) for Best Company in Labour Practice Responsible Drinking & Community Investments World AIDS campaign Motor Park Health and Safety Programme with Lagos State Won Best Private Sector Company Supporting Water Sector (Min of Water Res) WOL in Ago Ibami and Oza Nogogo Relief materials to flood victims in Edo State. Technical education scholarships to students

23 23 HIGHLIGHTS PEOPLE Talent Development We have secured more local leaders externally to strengthen our leadership pipeline We have made internal movements and promotions to fill vacancies created to support our growth ambitions Eyitemi Taire Afeez Ajibowu Patrick Awotwi Gender diversity of leadership population improving Chizoba Ojielo Innocent Nwaononiwu Kingsley Imade Employee Engagement Dedicated engagement resources working with teams to resolve issues Significant progress in employee engagement with improved communications and increased leadership team engagements Development / career plans and moves are also key to engagement Capability Introduction of an in-house sales academy to upscale our sales capability Vibrant employee awards scheme

24 STRATEGIC PRIORITIES Strengthen and accelerate our premium core brands Innovate at scale to meet new consumer needs Build and then constantly extend our advantage in Route to Consumer (RtC) Drive out cost to invest in growth Guarantee our plans with the right people and capability

25 CONCLUSION In F13 we delivered a 5% growth in revenue in a challenging market with constrained consumer discretionary income, security concerns, highly competitive RtC and increased competition The industry has experienced a decline in the last c.2years but is expected to rebound in the near to medium term in line with the positive economic fundamentals We have enhanced our ability to compete favorably against competition with our increased capacity, continued development of RtC channel, accelerated investment behind our brands and a great talent pool Reasons to believe o Quality of our innovation o A blend of experts and local senior managers o Enhancement of our RtC competitiveness o Our partnership with Diageo gives us access to expertise in delivering our future ambition 2

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