Slide 1: Nigerian Breweries Plc 2019 Full Year Performance
Nigerian Breweries Plc 2019 Full Year Performance February 2020
Slide 2: Forward-looking statements disclaimer
This presentation contains forward-looking statements with regard to the financial position and results of Nigerian Breweries activities. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-l
Slide 3: Agenda
Agenda "2. Nigerian Breweries «Market overview ¢Our strategy to win ¢Full Year performance
Slide 4: Company history timeline
Nigerian Breweries enters into a franchise Acquired brewery agreement with assets and brands Heineken & Co. to from the Sona brew the Heineken Group bringing lager locally in brand portfolio to Nigeria 11 1949 1965 2003 2011 2014 First bottle of Star President Nigerian Lager beer rolls Obasanjo Brew
Slide 5: Our Management Team
Our Management Team L Gs3
Slide 6: Breweries and malting plants map
North Sokoto Katsina Jigawa Yobe Zamfara Borno Kano Kebbi Kudenda Kaduna Bauchi Gombe Niger Adamawa Abuja Plateau Kwara Nasarawa Oyo Ibadan Ota Taraba West Ekiti Kogi Osun Benue Ogun Ondo Enugu Lagos Edo Ebonyi Lagos Ibadan Anambra Abia Cross Delta Imo East River Rivers Akwa Bayelsa Ibom NB Brewerie
Slide 7: Brand portfolio
Brand portfolio
Slide 8: Agenda
Agenda *Nigerian Breweries or Market overview ¢Our strategy to win ¢Full Year performance
Slide 9: Naira exchange rate
361 15.1 363 Naira/ $ 11.4 11.2 Nafex 90 80 70 60 50 40 https://www.cbn.gov.ng/rates/inflrates.asp 9
Slide 10: GDP by sector in Naira trillion
GDP (Sectors) in Naira Trillion 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 Agriculture Construction Industry Services Trade Oil https://www.cbn.gov.ng/rates/RealGDP.asp 10 http://statistics.cbn.gov.ng/cbn-onlinestats/DataBrowser.aspx
Slide 11: Population of Nigeria (2001–2019)
Population of Nigeria (2001 – 2019) 476 (million people) 439 401 365 329 295 263 233 201 206 186 191 196 181 167 172 176 163 146 150 154 159 135 139 143 125 129 132 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2025 2030 2035 2040 2045 2050 2055
Slide 12: 70,000 60,000 • 50,000 • 40,000 • 30,000 • 20,000 • • 10,000 -
70,000 60,000 • 50,000 • 40,000 • 30,000 • 20,000 • • 10,000 - -10,000 -20,000 -30,000 12
Slide 13: Agenda
Agenda *Nigerian Breweries «Market overview i *Our strategy to win ¢Full Year performance
Slide 14: Strategy to keep Winning with Nigeria!
Strategy to keep Winning with Nigeria! Expand Leadership in Build Scale in e Malt Growth Premium Mainstream Accelerate Heineken® growth Re-boost leadership in Drive profitability by Core Lager leveraging on innovation Continue Tiger rollout GrowrenarelonStone Winning Route-to-Market de n Point of Sa
Slide 15: TNACK\ME
TNACK\ME DINE
Slide 16: International premium lager share of beer sold
In 2000… International Premium Lager was small …1 out of 10 lager beer sold In 2019… in Nigeria is an International Premium brand 16
Slide 17: Our 2019 Sustainability Scorecard
Life compliance 100% Telematics installation ipany hicles Our 2019 Sustainability Scorecard Mp Heineken Campaign GROWING WITH COMMUNITIES EDUCATION + uilt & Furnished 16 classrooms in 3schools + Renovated & Furnished 26 classrooms in 4 schools += Sth Edition of Maltina Teacher of the Year held HEALT
Slide 18: Our 2019 Sustainability Scorecard
Our 2019 Sustainability Scorecard EVERY DROP’: PROTECTING WATER RESOURCES -— eG L. “New Wastewater Treatment Plant under construction in Awo-Omamma Brewery ) DROP THE C, REDUCING CARBON EMISSIONS Solar Panel 1.5% Installations in 108M) /hi 29% Thermal Energy Hoadan Brewery to, ‘Combined Energy impro
Slide 19: Management Training, Inclusion & Diversity, Digital Capability
Inclusion & Diversity Management Training Digital Capability
Slide 20: Agenda
Agenda *Nigerian Breweries ¢ Market overview ¢Our strategy to win cr Full Year performance
Slide 21: Financial Overview FY 2019
Financial Overview FY 2019 P&L Key financials Alen - sito sts Revenue 323.0 324.4 -0.4 Cost of Goods Sold 191.8 197.5 2.9 Gross Profit 131.2 126.9 3.4 Result from Operating activities 35.3 37.0 46 Operating Profit Margin 10.9% 11.4% -48bps Net Finance Expenses 11.9 7.6 57.0 Net Profit 16.1 19.4 -17.
Slide 22: Key balance sheet items
Key balance sheet items Property, Plant & Equipment Right of Use Assets Inventories Accounts Receivable Cash Other Assets TOTAL ASSETS Non Current Liabilities Borrowings Trade and Other Payables Other Liabilities Equity TOTAL EQUITY AND LIABILITIES Financial Overview FY 2019 FY 2019 FY 2018 (N billi
Slide 23: Interest coverage note
* Note: interest coverage is calculated as operating profit over interest expense. 23
Slide 24: Proposed dividends for 2019
Proposed dividends for 2019 Proposed Dividend for 2019: Total dividend $16.1 bn (2018: 19.4bn) Interim dividend paid: 80.50 per share (&3.9bn) Proposed final dividend: N1.51 per share (812.1bn) Total proposed dividend: %2.01 per share (2018: N2.43) Earnings per share: %2.01 for 2019 (2018: N2.43) AG
Slide 25: In Summary during 2019...
In Summary during 2019... * We regained volume growth on both lager and malt categories. Premium specifically remains on a growth path and combined with Malt provides a better mix in the revenue. * We leverage on the power of our brands to face increased promotional intensity in the market. * Our Co
Slide 26: Outlook for 2020
Outlook for 2020 ¢ We expect to expand our business with innovations and consumer focus. * We have passed on the VAT increase and a moderate price increase to ensure value creation is maintained. ¢ We aim to maintain the focus on our Cost Leadership to fuel continued investment and brand support. *
Slide 27: Q&A Winning with Nigeria
Q&A Winning with Nigeria