Seni Adetu, Managing Director /CEO

Lisa Nichols, Finance/Strategy Director

Sesan Sobowale, Corporate Relations Director

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

COMPANY OVERVIEW

OUR COMPANY

Strong portfolio diversity including alcoholic and non-alcoholic beverages covering a wide

range of consumer segments and choices

Strong values: Performance culture, developing talent, positively impacting the

communities in which we operate, strong governance and ethical standards

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

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.

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

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

7

MARKET & PERFORMANCE OVERVIEW

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

Economic indicators:

• GDP has been growing and averaging 6% - 8% in

past two years

• Nigeria to remain in top quartile of GDP growth from

2011-2016

• Inflation Rate averaging 10% Y.O.Y

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

KEY DRIVERS OF PERFORMANCE

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

RtC competitiveness :

Invested in additional sales force to improve outlet coverage, GDCs deployed to over 200 areas in

Nigeria

Investment in capacity :

Flexibility in meeting changing consumer trends, channel is still logistically expensive to service,

Increased interest cost

Representation in large/growing segments:

Innovation of value brands, RTD’s exploitation , Low sugar malt innovation

Performance Overview: Growth %

Net Revenue 5%

Operating Profit – 6%

Profit After Tax -17%

FINANCIAL PERFORMANCE

GN PLC F13 RESULTS – COMPREHENSIVE INCOME

Q4 F13 Growth FY F13 Growth

Nbillion % Nbillion %

Gross Revenue 36.5 7% 131.4 4%

Net Revenue 34.0 8% 122.5 5%

Cost of Sales (18.2) 13% (66.4) 8%

Gross Profit 15.8 3% 56.1 2%

Marketing & Distr. (6.6) 18% (26.0) 6%

Admin Costs (2.9) 28% (10.3) 9%

GN PLC F13 RESULTS – COMPREHENSIVE INCOME

Q4 F13 Growth FY F13 Growth

Nbillion % Nbillion %

Operating Profit 6.8 -9% 20.6 -6%

Financing charges (1.1) 52% (3.6) 138%

PBT 5.8 -15% 17.0 -17%

Tax (1.3) -21% (5.1) -17%

PAT 4.5 -13% 11.9 -17%

K K

EPS 299 -14% 793 -18%

DRIVERS OF PROFIT BEFORE TAX

1

4

17.0

0.1

6.9

20.4

Admin

costs

Price Mktg &

distr.

-1.4

Volume

-0.9

-0.8

-5.1

2012

PBT

CoGS 2013

PBT

-2.1

Financing Other

income

Drivers of PBT decline F13 vs. LY (Nbillion)

Capacity expansion

depreciation

Expansion

investment

GN PLC F13 RESULTS - FINANCIAL POSITION

FY F13 FY F12 Movt

Nbillion Nbillion Nbillion

Non-Current Assets 88.8 77.2 11.6

Inventories 12.4 13.2 (0.8)

Receivables 16.6 10.8 5.8

Cash 3.2 4.8 (1.6)

Total Assets 121.1 106.0 15.1

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)

HIGHLIGHTS OF F13

HIGHLIGHTS OF F13

Brands Innovation Route to

Consumer Supply Reputation People

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

Partnership with football

Improved media and OOH visibility

Harp rhythm unplugged

‘Smirnoff Midnight Circus’

events

Distribution drives

Promoting healthier living

Competitive pricing

Distribution drive and

consumer experience

18

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

H2

Snapp Rolled out nationally

Refreshed advertising

Dubic • New green bottle

• Regional expansion

Top Malt • Pack redesign for

national re-launch

19

HIGHLIGHTS - INNOVATION

Cold & Events GDC Branding

Investments in project cold

Special events supporting

social events driving

convenience & visibility

Guinness Distribution Centres

(GDC) driving rural re-

distribution

Roll out progressing well

Distributor warehouse

branding

• Flagship outlet branding

Sales coverage

Additional sales vans

Maximised opportunity in Key

Account.

Increased visibility via Kitting of

Bar men

20

HIGHLIGHTS - ROUTE TO CONSUMER

HIGHLIGHTS - SUPPLY

21

Gas / Diesel Generator

and Boilers

CO₂ Plant and

Loading capacity

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).

Responsible Drinking & Community Investments

•Project DIY: skills training

for children's in the

orphanages.

•The Social Enterprise

Report Awards (SERA) for

‘Best Company in Labour

Practice’

•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

OUR WORK IN THE COMMUNITY

23

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

Talent Development

Employee Engagement

•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

Gender diversity of leadership population improving

Introduction of an in-house sales academy to upscale our sales capability

Vibrant employee awards scheme

HIGHLIGHTS – PEOPLE

Afeez Ajibowu Eyitemi Taire

Kingsley

Imade Chizoba Ojielo

Innocent

Nwaononiwu

Patrick Awotwi

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

CONCLUSION

2

5

• 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