Guinness Nigeria Plc · NSENG:GUINNESS
Guinness Nigeria — H1 FY2023 Earnings Presentation
27 slides from Guinness Nigeria's earnings presentation, Jan 22, 2023
Slide 1: Investors Conference Call, 22 January 2023
GUINNESS John Musunga, Managing Director/ Chief Executive Officer Emmanuel Difom, Finance & Strategy Director Rotimi Odusola, Corporate Relations Director & Company Secretary N V E sTO RS and other members of the Guinness Nigeria CONFERENCE Executive tear. ° CALL 2 JANUARY 22 2023 aati tis
Slide 2: F23 Half Year Review agenda
F23 Half Year Review . Me Ee Ure John Musunga . INVE STO RS’ F23 Half Year Financial Performance Review Emmanuel Difom CALL F23 H2 Priorities John Musunga Q&A Rotimi Odusola
Slide 3: Half Year Review
John Musunga Half Year Review Mangia tmeas
Slide 4: F23 Mission Statement
F23 MISSION STATEMENT - Deliver OM of 18.2% as a step to delivering OM of 20% by F24 Ss i Drive Innovation - Fewer, Bigger, Better Projects * Increase NSV/EU through direct price increases or more efficient trade spend Increase weighted distribution * Reduce COGS/EU by driving productivity and . Gro
Slide 5: Macro Landscape
MACRO LANDSCAPE. Slower productivity, pressured FX, rising cost remains a challenge... Insecurity and risk of violence may still be high in F23 as an election year GDP growth % Inflation FX Election Year External CBN rate Paral ate , Q3 2020 Q3 2021 Q3 2022 15.4% ZA 21.1 % — =— (#to 7 ee $i) ec’ 6.9
Slide 6: F23 Mission
F23 MISSION DIAGEO TOOK BOLD & DELIBERATE PRICE INCREASES INCREASED SPEND BEHIND STRATEGIC BRANDS SUSTAINED STAKEHOLDER ENGAGEMENT CONTINUED INVESTMENT IN COMMUNITY IMPACT DIAGEO 6 | F23Mission
Slide 7: Higher price growth rate on GN Stout and Malt vs category
Higher price growth rate on GN Stout and Malt vs category (YTD Industry Category Price growth - in % GN Price growth - in % YTDvsLY C3MvsLY C3MvsP3M YTDvsLY C3MvsLY C3MvsP3M Beer 28.8% 26.8% 2.6% Beer 28.5% 28.4% 5.5% Lager 30.1% 27.7% 2.4% Lager 34.7% 40.5% 1.7% Stout 24.6% 24.2% 3.4% Stout 28.5% 2
Slide 8: Guinness Malta Other Apnads RIR%
F22 H1 RIR% F23 H1 RiR% Guinness 11.9% 12.6% Malta 3.5% 2.9% Other Apnads 1.2% 2.3% RTD 9.0% 9.5% MSS 8.7% 7.3% IPS 35.6% 33.3% Total 9.9% 9.7%
Slide 9: F23 Media Relations & Employee Engagement
F23 MEDIA RELATIONS & EMPLOYEE ENGAGEMENT Sustained engagement with all stakeholder groups, including the media and KOFs. DIAGEO Positive Guinness Nigeria’s Media Features Always-on employee wellness activities Diversity & Inclusion Engagements Brand-led employee engagement activities GLT-led busine
Slide 10: F22 Media Relations & Employee Engagement
F22 MEDIA RELATIONS & EMPLOYEE ENGAGEMENT DIAGEO Stakeholders and KOFs know what we stand for, with numerous external recognition and awards received. Smooth GN Leadership - ———_ d= | Transition Getting Personal [wm Guinness Nigeria bags recognition awards from externals bodies. Sponsorship and Part
Slide 11: Promote Positive Drinking
Promote Positive Drinking: Changing the way the world drinks for the better DIAGEO by celebrating moderation and addressing alcohol related harm * Smashed Live Tour: With about 80 Live performances, over 20,000 students were reached in secondary schools within Ogun and Oyo states. This year, Smashed
Slide 12: Championing Inclusion & Diversity
Championing Inclusion & Diversity: DIAGEO Continued championing of inclusion & diversity across our business, with our partners and within our communities to celebrate diversity and help shape a tolerant society. THE CHAIRMAN OF COUNCIL, FEDERAL NIGERIA SOCIETY FOR THE BLIND woe * Partnership with F
Slide 13: Malts & RTDs
MAINSTREAM WITHIN STOUT SPIRIT PREMIUM SPIRITS MALTS & RTDS
Slide 14: F23 Half Year Financial Highlights
F23 . . Half Year Emmanuel Difom Fina ncial H ighlig hts Finance & Strategy Director
Slide 15: H1 F23 Highlights and Lowlights
H1 F23 HIGHLIGHTS o o o o o o H1 F23 LOWLIGHTS o o o o o o o
Slide 16: Gross Profit grew by 225bps however, OPM declined 1.8ppts
Volume (+8% vs Q1, -6% vs LY) and Market share (-100bps vs F22) Revenue growth: Abs (+N12.7bn and +24% vs Q1; +N9.3bn and +9% vs LY) Cost of Goods Sold: +N6.9bn (+20%) vs Q1; -N3.5bn (+5%) vs LY • • Distribution: +28% vs LY and Mktg expenditures: +7% vs LY Government Rev: Abs (+N22bn); vs F22 H1 (+9
Slide 17: Quarter to date Year to date income statement
Quarter to date Year to date 2022/12/31 2022/12/31 N’000 N’000 Note Revenue 7 65,601,794 118,451,675 Cost of sales (41,550,824) (76,161,228) Gross profit 24,050,970 42,290,447 Other income 293,978 954,360 Marketing and distribution expenses (12,515,105) (21,929,106) Administrative Expenses 8 (ii) (5
Slide 18: F22 H1 RIR% F23 H1 RIR%
F22 H1 RIR% F23 H1 RiR% Guinness 11.9% 12.6% Malta 3.5% 2.9% Other Apnads 1.2% 2.3% RTD 9.0% 9.5% MSS 8.7% 7.3% IPS 35.6% 33.3% Total 9.9% 9.7%
Slide 19: Inflation hedge through Operating Working Capital
Inflation hedge through Operating Working Capital Inventory: +N11.2bn driven by * Business growth and high inflation in the cost base. H1: N38.4bn * Increase in stock holding of key materials to mitigate +41% vs F22 H1 inflation and manage extended lead time due to +20% vs F22 FY disruption in inter
Slide 20: What Does the Future Hold?
WHAT DOES THE FUTURE HOLD? © Elections / Security o Excise Hike © Keeping the ship afloat until liquidity improves o NGN Devaluation: P&L loss and BS remeasurement
Slide 21: H2 Priorities
John Musunga H2 Priorities Managing Director
Slide 22: H2 Priorities
DIAGEO H2 Priorities 22
Slide 23: Priorities by category: Stout, Mainstream Spirit, Premium Spirits, Malts & RTDs
MAINSTREAM PREMIUM WITHIN STOUT SPIRIT SPIRITS MALTS & RTDS ✓ GROW SHARE ✓ GROW SHARE ✓ GROW SHARE ✓ HOLD SHARE ✓ GROW EQUITY ✓ GROW EQUITY ✓ HOLD EQUITY ✓ HOLD EQUITY ✓ EXPAND ✓ EXPAND ✓ EXPAND ✓ EXPAND FOOTPRINT FOOTPRINT FOOTPRINT FOOTPRINT ✓ PROTECT ✓ PROTECT ✓ PROTECT ✓ COST MARGINS MARGINS MAR
Slide 24: F23 Digital / E-commerce Landscape
F23 Ambition F23 Digital/ E-commerce Landscape Deliver GSV of £10M Strategic Digitalize GNPLC DBs Joined Business Partnership with & Wholesalers planning with top Ecommerce leveraging Diageo key partners players in Nigeria one and thebar.com Key Enablers Digital Marketing to Rate of Sales initiative
Slide 25: F23 HR Priorities
F23 - HR PRIORITIES OUR APPROACH TO MAKING IT HAPPEN - THE WHAT DIAGEO PERFORMANCE AMBITION To create the best performing, most trusted and respected consumer products company in the world Continuous Disruptive Approach Inclusion & Speed, Focus & Fulfilling Employee PEOPLE STRATEGY Learning to Talen
Slide 26: Rotimi Odusola, Corporate Relations Director
& Rotimi Odusola Corporate Relations Director & Company Secretary
Slide 27: Cautionary Statement concerning forward-looking statements
AFRICA Cautionary Statement concerning forward-looking statements * — This presentation is based on Guinness Nigeria Plc’s unaudited financial results for half year period ended 31st December 2022. Guinness Nigeria Plc (“GN" or the “Company”) has obtained some information in this presentation from s