Quarter 5 - financial statement for 2025

Annual report and financial statements for the year ended 31 December 2025

Page

Corporate information 2

Report of the directors 3

Statement of directors' responsibilities 10

Certification of the audited financial statements 11

Audit committee's report 12

Management's annual assessment of, and report on International Breweries Plc's internal control over financial reporting 13

Certification of management's assessment on internal control over financial reporting 14

Independent practitioner's report 16

Independent auditor's report 18

Statement of profit or loss 22

Statement of other comprehensive income 23

Statement of financial position 24

Statement of changes in equity 25

Statement of cash flows 26

Notes to the financial statements 27

Other national disclosures:

Statement of value added 60

Five-year financial summary 61

Company registration number

RC 9632

Chairman

HRM Nnaemeka Alfred Achebe, CFR,MNI Nigerian Non-executive Director

Directors

Mr. Carlos Coutino Guatamelan Managing Director/CEO Resigned January 13 2026 Mr Nicholas Kade South African Managing Director/CEO Appointed January 13 2026 Mr. Andrew Whiting British Non-executive Director

Mr. Bruno Zambrano Colombian American Non-executive Director

Mr. David Tomlinson American Non-executive Director

Mr. Michael Ajukwu Nigerian Non-executive Director Resigned March 27 2025 Mr. Sunday Omole Nigerian Non-executive Director Resigned August 5 2025 Ms. Olutoyin Odulate Nigerian Independent Non-executive Director

Mr. Cherian Kurien Indian Non-executive Director

Mrs Temitope Oguntokun Nigerian Executive Director

Ms. Chinyere Ezeugwu Nigerian Executive Director Appointed March 27 2025 Mrs. Awuneba Ajumogobia Nigerian Independent Non-executive Director Appointed August 5 2025 Mrs. Toyin Adeniji Nigerian Non-executive Director Appointed August 5 2025 Mrs. Chijioke Ugochukwu Nigerian Non-executive Director

Auditors PricewaterhouseCoopers FF Millenium Towers

13/15 Ligali Ayorinde Street Victoria Island,

Lagos, Nigeria.

Corporate office Plot 5A Abuja Street, Banana Island, Ikoyi, Lagos, Nigeria.

Company Secretary/General Counsel

Mrs. Temitope Oluwatosin Plot 5A Abuja Street, Banana Island,

Ikoyi, Lagos, Nigeria.

Bankers

Access Bank Plc. CitiBank Nigeria Limited Fidelity Bank Plc.

First Bank of Nigeria Limited FSDH Merchant Bank Limited Guaranty Trust Bank Plc.

Stanbic IBTC Bank Limited Union Bank of Nigeria Plc. United Bank for Africa Plc. Zenith Bank Plc.

The Directors submit their report together with the audited financial statements for the year ended 31 December 2025, to the members of International Breweries Plc ("the Company"). This report discloses the financial performance and state of affairs of the Company.

1. Incorporation and address

   International Breweries Plc was incorporated as a private limited liability Company on 22 December, 1971 and became a public limited liability Company on 26 April, 1995. The Company's head office is situated at Plot 5A Abuja Street, Banana Island, Ikoyi Lagos, Nigeria.

2. Legal form

   International Breweries Plc ("the Company") was incorporated as a private limited liability Company on 22 December 1971 and became a public limited liability Company on 26 April,1995. The Company is a part of the AB-InBev Group (the largest breweries in the world).

3. Principal activities

   The principal activities of the Company are brewing, packaging and marketing of alcoholic and non-alcoholic beverages.

4. Operating summary

   The Company's results for the year ended 31 December 2025 are set out on page 23. The profit for the year has been transferred to retained earnings. The summarised results are presented below:

   	2025	2024
   	₦'000	₦'000
   Revenue from contracts with customers	619,042,226	488,955,682
   Profit/(loss) before tax	88,955,469	(111,820,512)
   Income tax expense	(38,041,796)	(1,794,388)
   Profit/(loss) after tax	50,913,673	(113,614,900)
   Total comprehensive income/(loss) for the year	50,913,673	(182,720,204)

5. Dividend declaration

   The Board maintains a dividend policy which guides its decision on dividend declaration. At this time, given the results of the company, no dividend pay out is possible. The Board views this decision as appropriate in the short term and in the future interest of the Company.

6. Board composition

   The names of the directors as at year end and date of this report are as set out on the corporate information page. Within the period under review, Ms. Chinyere Ezeugwu was appointed to the Board as Executive Director effective 27 March, 2025. Mrs. Awuneba Ajumogobia and Mrs. Toyin Adeniji were also appointed to the Board as Independent Non-executive Director and Non-executive Director respectively, effective 5 August, 2025. Additionally, Mr. Michael Ajukwu and Mr. Sunday Omole resigned effective 27 March, 2025 and 5 August, 2025 respectively.

   Details of the Directors' interest in the Company's shares during the year under review as at the date of approval of this report and as recorded in the register of members and or notified by the Directors for the purpose of Section 275 of Companies and Allied Matters Act (CAMA), 2020 as well as the Listing Rules of the Nigerian Exchange Limited are set out below. Directors whose names did not appear here do not have any direct/indirect shareholding in the Company.

   	2025	2024
   	Number	Number
   Direct holding
   HRM Igwe Nnaemeka Alfred Ugochukwu Achebe	40,732,127	40,732,127
   Carlos Coutino (Indirect holdings through AB INBEV NIGERIA HOLDINGS BV (THE	161,580,471,272	161,580,471,272
   "COMPANY") and BRAUHAASE INTERNATIONAL MANAGEMENT GMBH)	2,377,579,013	2,377,579,013
   Ms. Chinyere Ezeugwu	204,836	-
   Mrs. Chijioke Ugochukwu	96,010	71,860,799
   Mr. Michael Onochie Ajukwu	45,000,000	71,860,799
   Indirect holding
   Mrs. Toyin Adeniji (Through Newco Investment Company Limited)	334,075,394	334,075,394
   Mr. Sunday Omole (Through Cardinal Investment Nigeria Limited)	968,087	968,087

   Report of the directors (continued)

7. Directors' interest in contracts

   All directors with interest in contracts are obligated to notify the company for the purpose of Section 303 of the Companies and Allied Matters Act (CAMA), 2020 of their direct or indirect interest in contracts or proposed contracts during the year. The directors do not have any interest required to be disclosed in the year under review as required under section 303 of the Companies and Allied Matters Act (CAMA), 2020.

8. Property, plant and equipment

   Information relating to change in property, plant and equipment is given in note 14 to these financial statements. A total of ₦111.1 billion (2024: ₦71.7 billion) was expended on property, plant and equipment during the year. In the opinion of the Directors, the fair value of property, plant and equipment is not lower than their carrying value.

9. Corporate governance

   This report describes the directors' approach to corporate governance and how the Board applied the codes on corporate governance and other applicable regulations.

   The directors are committed to maintaining the best standard, which they believe is pivotal to the discharge of their stewardship expectations. The Board is aware of the National Code on Corporate Governance 2018 and has commenced the application of the 28 principles as enshrined in the Code. The company's conviction is that good corporate governance practices should be accorded a more practical approach in enhancing company ideals and management performance.

   As at the time of this report, the Board was composed of the chairman who is a non-executive director, two Independent non-executive directors, eight non-executive directors and four executive directors. The Non-Executive: Executive ratio was thus 11:4, which guarantees independence and supervision over Management in line with best practices.

   The Board considers itself sufficiently Independent for the purpose of their contributions to the invaluable integrity, corporate wisdom and experience towards the Board and committees' deliberations and decisions. The Board is therefore satisfied with the performance and continued independence of judgment of each of the directors.

   (i) The Board's operation

   Board meetings and attendance

   The Board of directors met during the year under review. An individual director's attendance at these meetings is as set out in the table below. In the few instances where a director was unable to attend a Board or Committee meeting, his or her alternate attended in his stead and any comments which they had on matters set out in the agenda for consideration at such meeting was given in advance to the chairman of the meeting.

   Analysis of attendance of meetings of Board members

   Names of Directors		Dates of meetings
   	27/03/2025	24/04/2025	24/07/2025	30/07/2025 (AGM)	23/10/2025	No. of Meetings Attended
   HIS MAJESTY NNAEMEKA ACHEBE CFR, MNI. CHAIRMAN	P	P	P	P	P	05 of 05
   MRS. CHIJIOKE UGOCHUKWU NKECHINYERE INDEPENDENT NON-EXECUTIVE DIRECTOR	P	P	P	P	P	05 of 05
   MS. OLUTOYIN ODULATE INDEPENDENT NON-EXECUTIVE DIRECTOR	P	P	P	P	P	05 of 05
   MR. SUNDAY AKINTOYE OMOLE NON-EXECUTIVE DIRECTOR	P	P	P	P	R	04 of 05
   MR. MICHAEL AJUKWU NON-EXECUTIVE DIRECTOR	P	R	R	R	R	01 of 05
   MRS. AWUNEBA AJUMOGOBIA	NYM	NYM	NYM	P	AP	01 of 05
   MR. BRUNO ZAMBRANO NON-EXECUTIVE DIRECTOR	P	AP	P	AP	P	03 of 05
   MR. TOYIN ADENIJI- NON-EXECUTIVE DIRECTOR	NYM	NYM	NYM	NYM	P	01 of 05
   MR. ANDREW WHITING NON-EXECUTIVE DIRECTOR	P	P	P	AP	P	04 of 05
   MRS. TEMITOPE OGUNTOKUN EXECUTIVE DIRECTOR	P	P	P	P	P	05 of 05
   MR. CHERIAN KURIEN NON-EXECUTIVE DIRECTOR	P	AP	P	AP	P	03 of 05
   MR CARLOS COUTINO-MANAGING DIRECTOR	P	P	P	P	P	05 of 05
   MR DAVID TOMLINSON- NON-EXECUTIVE DIRECTOR	P	P	P	P	P	05 of 05
   MS. CHINYERE EZEUGWU - FINANCE DIRECTOR	NYM	P	P	P	P	04 of 05

   Keys P - Present

   AP - Absent

   NYM - Not Yet Member R - Resigned/Retired

   Report of the directors (continued)

   1. The Board's operation (continued)

      Operation of the board

      The Board sets the strategic objectives and delegates to Management the detailed planning and implementation of those policies. The board thereafter monitors compliance of the actualization of the set policies and objectives through quarterly reports to the board and its committees, enabling directors to explore and interrogate specific issues for feedback in greater detail.

      The board and its committee meetings are held in an atmosphere of robust, constructive, and intellectual debate of issues with sincerity of purpose, integrity and mutual respect.

      Matters of exclusive preserve

      The board has a schedule of matters as contained in an approval grid which is dealt with exclusively by the board. This includes but not limited to the approval of financial

      statements; annual expenditure/budget plan; material investment or disposals and the Company's business strategy.

      The board governs through its established committees with reporting systems. Each committee or standing committee has specific written terms of reference and committee charters. All committee reports to the board and their committee meeting reports are included in the board packs circularized to all the board members ahead of the full Board meetings.

      Risk and the board of directors

      The Company's Board of Directors is ultimately responsible for reviewing the effectiveness of the Company's risk management systems. The Company, through its training and management standards and procedures, aim to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The risk management system is designed to manage, rather than eliminate, the risk of failure to achieve business objectives and there is an ongoing process in place for identifying, assessing, managing, monitoring, and reporting on the significant risks faced by the Company.

      The Company's Audit Committee oversees how management monitors compliance with the Company's risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Internal Audit function has been expanding in line with our global risk management structure. The activities and capabilities of the new initiative are far more improved than the traditional internal audit functions. The new structure will develop business insights, improve our operations, and manage risks in a smart and proactive way using analytical technics supported by a strong team.

      This process has been established for the year under review up to the approval of the Annual Report and Accounts. The principal risks and uncertainties facing the Company are set out in note 4.

      Conflict of interest

      The directors are aware and advised to avoid situations where they have, or can have, a direct or indirect interest that conflicts with, or may possibly conflict with the Company's interests and encouraged to make full disclosures. In accordance with the Companies and Allied Matters Act 2020 as amended and the Company's articles of association, the Board can authorize potential conflicts of interest that may arise and impose such limit or conditions as it may deem fit. There were however, no actual or potential conflicts of interest which were required to be authorized by the Board during the year ended 31 December 2025.

      The roles of executive and non-executive directors

      The executive directors are responsible for proposing strategies and for making and implementing operational decisions. Non-executive directors complement the skills and experience of the executive directors, bringing independent judgment and making inputs through their knowledge and experience of other businesses and sectors.

      Information dissemination and training

      The Company Secretary is responsible for advising the Board, on issues of corporate governance. The secretariat supplies the Board and its committees with full and timely information through meeting packs and other resources to enable directors to prepare adequately for their meetings and take informed decisions.

      The company is committed to the continuing development of directors in order that they can build on their expertise and develop an ever more detailed understanding of the business and the ever-changing legal and regulatory environment.

      Other appointments

      Non-executive directors may serve on the Boards of other companies to widen their experience and knowledge for the company's benefit. Directors ensure that their effectiveness on the Board is not compromised by their external commitments. The Board is pleased that the chairman and the non-executive directors commit enough time to their duties and the non-executive directors have confirmed that they have sufficient time to fulfil their respective obligations to the Company.

      Board, committee and director performance evaluation

      The Board subscribes to performance evaluation processes in line with best practice and as prescribed by the National Code on Corporate Governance. An in-house evaluation of the Board's performance was carried out for the year ended 31 December 2025. The Board considers its performance in the year under review as satisfactory and largely in compliance with prescribed codes of corporate governance. The Board will be due for an independent assessment by the next financial year.

      The Company Secretary

      Mrs. Temitope Oluwatosin acted as General Counsel and Secretary to the Board and its committees during the year under review.

   2. The Board Committees

   The Statutory Audit Committee

   The Audit Committee chaired by Mr. Babajide Ajani Adetunji met five times during the year under review. The members representing the shareholders are Mr. Chisom Nwamara William, Mr. Olalekan Layi Iyiola, Mr. Babajide Ajani Adetunji while Mr. Michael Ajukwu, Mrs. Chijioke Ugochukwu and Mrs. Awuneba Ajumogobia are the representatives of the Board for the 2025 financial year. Mr. Sunday Omole resigned effective August 2025.

   The Global Risks Management Manager, Internal Control Manager and the Finance Director attended the committee meetings by invitation while the External Auditors attended the meeting held on 27 March 2025 and 27 November 2025. The work of the committee during the period included Audit matters and internal audit reviews.

   The audit committee reports all activities and makes recommendations to the board. During the year under review, the audit committee discharged its responsibilities as they

   are defined in the committee's terms of reference and has ensured that applicable standards of governance and compliance are adhered to.

   The Internal Control/Global Risks functions have direct access to the committee, primarily through its chairman. The functions enjoy the benefit of adapting the workings and processes of approved International and best practice templates for improved efficiency.

   Report of the directors (continued)

   (ii) The Board Committees (continued)

   Analysis of attendance of meetings of Audit Committee members for the year

   Name of audit committee members	Membership type	Dates
   		25/03/2025	22/04/2025	22/07/2025	21/10/2025	27/11/2025	Total
   Mr. Sunday A. Omole (Resigned at August 2025 AGM)	Director	P	P	P	R	R	3 of 5
   Mr. Michael Ajukwu (Resigned in March 2025)	Director	P	R	R	R	R	1 of 5
   Mrs. Chijioke Ugochukwu	Director	NYM	NYM	NYM	P	P	2 of 5
   Mrs. Awuneba Ajumogobia (Appointed in August 2025 AGM)	Director	NYM	NYM	NYM	AP	P	1 of 5
   Mr. Chisom Nwamara William (Re-elected in July 2025 AGM)	Shareholder	P	P	P	P	P	5 of 5
   Mr. Olalekan Layi Iyiola (Re-elected in July 2025 AGM)	Shareholder	P	P	P	P	P	5 of 5
   Mr. Babajide Ajani Adetunji (Re-elected in July 2025 AGM)	Shareholder	P	P	P	P	P	5 of 5
   P- Present Keys AP- Absent R - Resigned NYM- Not Yet Member

   The Governance/Remuneration/Nomination Committee

   The Committee is charged with the overall responsibility of ensuring that all governance reviews and strategic plans on remuneration and nomination were complied with. For the 2025 financial year, the committee is composed of Mr. Michael Ajukwu, Mr. Akintoye Omole, Mr. Andrew Whiting and Ms. Olutoyin Odulate.

   Analysis of attendance of meetings of Governance Committee members for the year

   Names of Members	Designation	21/03/2025	25/03/2025	15/04/2025	24/07/2025	22/10/2025	Total
   Mr. Michael Ajukwu	Director/Chairman	P	P	R	R	R	2 of 5
   Mr. Akintoye Omole	Director/Member	P	P	P	P	R	4 of 5
   Ms. Olutoyin Odulate	Director/Member	P	P	P	P	P	5 of 5
   Mr. Andrew Whiting	Director/Member	P	P	P	R	P	4 of 5

   P- Present

   R - Resigned

   The Risk Management/Sustainability Committee

   The Committee focuses on Risks and Sustainability, always taking into cognizance established best practices. The Committee in that wise assists the Board in its oversight of the risk profile, risk management framework, risk strategy and the Sustainability framework for the Company.

   Analysis of attendance of meetings of Risk Management/Sustainability Committee members

   Names of Members	Designation	21/03/2025	16/04/2025	16/07/2025	10/09/2025	Total
   Mr. Akintoye Omole	Director/Chairman	P	P	P	R	3 of 4
   Mrs. Chijioke Ugochukwu	Director/Member	NYM	P	P	P	3 of 4
   Mr. Michael Ajukwu	Director/Member	P	R	R	R	1 of 4
   Mr. Cherian Kurien	Director/Member	AP	AP	AP	P	1 of 4
   Mrs. Temitope Oguntokun	Director/Member	P	P	P	P	4 of 4

   P - Present AP- Absent R - Resigned

   NYM - Not a member as at the date

10. Share capital

    During the year, the number of the Company's issued ordinary share capital remained 168,291,591,406 (2024: 168,291,591,406) ordinary shares.

    Details of share capital are shown in the report

    Range	No of shareholders	Holders %	Holders Cum.	Units	Units %	Units Cum.
    1 - 1000	21,824	45.8%	21,824	10,894,437	0.01%	10,894,437
    1001 - 5000	15,733	33.0%	37,557	39,526,750	0.02%	50,421,187
    5001 - 10000	5,119	10.7%	42,676	42,958,273	0.03%	93,379,460
    10001 - 50000	3,357	7.0%	46,033	78,355,803	0.05%	171,735,263
    50001 - 100000	665	1.4%	46,698	48,350,278	0.03%	220,085,541
    100001 - 500000	679	1.4%	47,377	149,335,382	0.09%	369,420,923
    500001 - 1000000	103	0.2%	47,480	77,348,927	0.05%	446,769,850
    1000001 - 9999999999	199	0.4%	47,679	167,844,821,556	99.73%	168,291,591,406
    Grand total	47,679	100%		168,291,591,406	100%

    Substantial Shareholding

    The particulars of the shareholders that held more than 5% of the issued and fully-paid share capital of the Company as at 31 December 2025 are as follows:

    Name		Shareholding	Percentage
    AB Inbev Nigeria holdings BV		161,580,471,272	96.01%

11. Shareholding by category

    The Company as at year end had a free float of over N20 billion (Based on market value). This complied with the Nigerian Exchange Limited free float registration for Companies listed on the main board.

    Category of shareholder	No. of shareholder	Number Of Shares Held	Percentage holding (%)
    Individuals	46,734	1,283,880,105	0.76%
    Institutional Investors
    Corporate	754	2,221,174,135	1.32%
    Tax Free	26	63,465,641	0.04%
    State & Local Govt	13	760,668,407	0.45%
    Foreign Shareholder
    Corporate	2	163,958,050,285	97.42%
    Portfolio Investor	150	4,352,833	0.00%
    Total	47,679	168,291,591,406	100%

    Purchase of own shares

    The Company did not purchase any of its own shares during the period under review.

    Share capital history

    Date Issued	No. of Shares	Nominal Value	Issue Type	Remark
    		(₦)
    1971	9,000,000	-	Private Placement	Cash
    1980	2,000,000	0.50	Private Placement	Cash
    1981	2,600,000	0.50	Bonus	Reserves
    1981	2,200,000	0.50	Private Placement	Cash
    1982	200,000	0.50	Bonus	Reserves
    1982	2,000,000	0.50	Bonus	Reserves
    1983	2,000,000	0.50	Bonus	Reserves
    1985	4,000,000	0.50	Bonus	Reserves
    1986	6,000,000	0.50	Bonus	Reserves
    1988	6,000,000	0.50	Bonus	Reserves
    1989	4,000,000	0.50	Bonus	Reserves
    1991	10,000,000	0.50	Bonus	Reserves
    1992	31,683,540	0.50	Private Placement	Cash
    1993	5,419,692	0.50	Private Placement	Cash
    1995	4,992,000	0.50	Private Placement	Cash
    1995	103,734,000	0.50	Public Offer	Cash
    1996	408,000	0.50	Public Offer	Cash
    1998	426,000	0.50	Public Offer	Cash
    1999	103,216,000	0.50	Public Offer	Cash
    2001	120,768	0.50	Rights Issue	Cash
    2002	212,914,682	0.50	Rights Issue	Cash
    2008	1,600,000,000	0.50	Public Offer	Cash
    2012	1,149,611,748	0.50	Rights Issue	Cash
    2014	31,722,850	0.50	Bonus	Reserves
    2017	5,301,612,656	0.50	Merger	Consolidation
    2018	8,595,861,936	0.50	Rights Issue	Cash
    2020	26,862,065,850	0.50	Rights Issue	Cash
    2024	168,291,591,406	0.50	Rights Issue	Cash

12. Corporate social responsibility

    During the period under review, the Company's corporate social responsibility towards its immediate and surrounding communities, especially in education, the environment and other social welfare, was again demonstrated in the various projects executed during the year and other donations both in cash and in the Company's products to various institutions and community centers.

    Over the course of 9 years, International Breweries Foundation has taken a keen interest in improving entrepreneurship in Nigeria. We have invested over 600 Million naira for this initiative. Over 2,000 youths have benefited directly from the program through training or grants. We have covered 30 out of the 36 states in the country, and 425 businesses have received grants to either start or grow their businesses. In 2024, we awarded 50 youths with grants that ranged between N750,000 and 3Million Naira.

    The Company scaled up the Retailer Development Programme, an initiative called Growing Retailers Innovatively Together (GRIT). The Programme was executed to empower retailers with essential skills and strategies to enhance their sales and business growth. The program spanned five locations

    - Port Harcourt, Onitsha, Ilesa, Gateway and Lagos - over an eight (8) day period, ensuring a broader reach and personalized interaction with participants, with the adoption of both in-person and in-app models. Over 1,050 Retailers were impacted through the programme.

    Corporate social investment initiaves, donations and sponsorships during the year included the following:
    	₦'000
    Description/projects Kickstart Entreneurship Programmes (national CSR programme)	104,201,227
    Retailers Development Program (GRIT)	5,000,000
    Community CSR Project	22,134,203
    Sponsorship	74,607,267
    Gift and Donation	37,142,809
    	243,085,506

13. Ethical business conduct

    The International Breweries Code of Business Conduct and Ethics as adopted from AB InBev, sets out high ethical standards with which all Company's employees are expected to comply, and forms part of the wider programme of policies and procedures throughout the Company. The Company's personnel are committed to conducting business in a way that is fair, ethical and within the framework of applicable laws and regulations. The Company's policies and procedures were reviewed in light of related 'adequate procedures' guidance, and developing corporate best practice, and made a number of enhancements, including the roll out of a new Company-wide anti-bribery policy. Key aspects covered by the programme include, amongst other matters, our anti-bribery policy, due diligence and other forms of compliances in relation to business partners, training of employees and monitoring and reporting mechanisms. Independent confidential whistle blower hotlines have been re-introduced into the Company's operations so that employees and third parties can report any breach. The Company maintains a whistle blowing procedure to address issues that can negatively affect the Company's reputation before its stakeholders.

14. Employment, environmental and health safety policies

    The people team designed and continually reviewed employment policies which attract, retain and motivate the highest quality of staff. Management is committed to an active equal opportunities policy, from recruitment and selection, through training and development, appraisal and promotion to retirement. It is the Company's policy to ensure that everyone is treated equally, regardless of gender, colour, nationality, ethnic origin, race, disability, marital status, religion or trade union affiliation.

    The Company is committed to its new policy on diversity as it understands the benefit of employing the right balance in people of different races, genders, creeds and backgrounds.

    The Company is ever committed to sustaining its policies and programmes on occupational health and safety to ensure a safe working environment for all its employees, suppliers, consumers and visitors to our sites. We have revised our policies on health and safety to enshrine world class manufacturing practices.

15. Employment of disabled persons

    The Company has two disabled persons in its employment. Applicable infrastructure and work tools for the disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicants concerned. Also, in the event of members of staff becoming physically challenged, every effort is made to ensure that their employment with the Company continues and that appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of physically challenged persons should, as far as possible, be identical with those of other employees.

16. Diversity and inclusion

    This top priority for the business was further strengthened in the year under review. Equity, fairness and transparency were some of the underlying principles of our ways of working.

    The Company celebrated the International Women's Day as part of the Company's drive to increase female representation in the workplace. We celebrated on this day, our women who cut-across roles and functions as forklift drivers way up to Executive Management. The Company has a LEANIN CIRCLE program for female employees. This is a platform for cross-fertilization of ideas on women focused engagements.

17. Research and development

    To ensure improved overall operational effectiveness, considerable emphasis is placed on research and development in the Company's technical activities, through the AB InBev Group. This enables the Company to develop new products, packaging, processes and new manufacturing capabilities.

18. Going concern

    The financial statements have been prepared on a going concern basis. The directors have no doubt that the company will be in existence after 12 months from the reporting date. The directors do not intend to cease operations or stop any of the production lines.

    The Company's business continuity plans continue to adapt to the dynamics of the operating environment hence, ensuring that the company remains a going concern. Part of these plans included safety of our employees, managing non-essential costs and protecting our cash flows. The business was able to recover and deliver a strong revenue growth to close the year. Our Board and Management are confident that the business will continue as a going concern.

    The Company continues to generate positive operating cash flows 2025: N139.32 billion (2024: N148.20 billion) to cover its short-term obligations. We will continue to explore available options to settle foreign denominated liabilities and hedging instruments to mitigate foreign currency risks. The company is strategically positioned for success in the future.

19. Employee consultation and training

    The Company places considerable value on the involvement of its employees in its affairs and has continued with its practice of keeping them informed on matters affecting them as employees and on various factors affecting the performance of the Company. Employees are consulted regularly on a wide range of matters affecting their current and future interests. Employees receive both internal and external training as necessary.

20. Donations and gifts

    In accordance with Section 43(2) of the Companies and Allied Matters Act (CAMA), 2020, the Company did not make any donations or gifts to charitable organization during the year under review (2024: Nil).

21. Financial risk

    Information on the Company's financial risk management objectives and policies and details of its exposure to price risk, credit risk and liquidity risk are contained in note 4 to the financial statements.

    The directors are responsible for the management of the business of the Company and may exercise all the powers vested on them by the Company subject to the articles of association and relevant statutes.

22. Events after the reporting period

    There were no significant events after the reporting period.

23. Stakeholders engagement

    As a Company, we understand that the continuing need for engagement is key to our success. We know our stakeholders and proactively engage with them regularly and manage the communications at required times to ensure shared value for all.

    The effective engagement of a broad spectrum of shareholders was reflective of the cooperation enjoyed on the timely and successful resolution of all issues. The year under review witnessed different stakeholder engagements with the media, our host communities, and other key stakeholders.

24. Complaints management policy

    Complying with the rules of the Securities and Exchange Commission on framework for complaints management, the Company and its Registrars provide responses within its framework to shareholder issues and concerns.

    This framework also provides the opportunity for shareholder feedbacks on matters that can affect its corporate existence through engagement with stakeholders and investor calls.

25. Auditors

    In accordance with Section 401(2) of the Companies and Allied Matters Act (CAMA), 2020, Messrs. PricewaterhouseCoopers have indicated their willingness to continue as auditors to the Company. A resolution will be proposed at the Annual General Meeting to authorize the directors to fix their remuneration.

26. Dealing policy

International Breweries Plc has a Securities Trading Policy ("the Policy") which guides the Board and Employees when attempting effecting transactions in the Company's shares. The Policy provides for periods for dealing in shares and other securities; established communication protocols on periods when transactions are not permitted to be effected on the Company's shares (Close Period) as well as disclosure requirements when effecting such transactions.

The Company complied with the Nigerian Exchange Limited's Rules regarding this policy in the year under review.

By order of the board:

Mrs. Temitope Oluwatosin

Company Secretary/General Counsel Plot 5A Abuja Street,

Banana Island, Ikoyi, Lagos.

FRC/2023/PRO/NBA/002/163181

08 April 2026

The Directors of International Breweries Plc accept responsibility for the preparation of the financial statements that give a true and fair view of the financial position of the Company as at 31 December 2025, and the results of its operations, cash flows and changes in equity for the year ended, in compliance with IFRS Accounting Standards and in the manner required by the Companies and Allied Matters Act of Nigeria, and the Financial Reporting Council of Nigeria (Amendment) Act, 2023.

In preparing the financial statements, the Directors are responsible for:

1. properly selecting and applying accounting policies;

2. presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

3. providing additional disclosures when compliance with the specific requirements in IFRS Accounting Standards are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Company's financial position and financial performance.

We state that management and directors:

1. have evaluated the effectiveness of the Company's internal controls within 90 days prior to the date of its audited financial statements,

2. certifies that the Company's internal controls are effective as of that date;

We have disclosed:

1. all significant deficiencies in the design or operation of internal controls which could adversely affect the Company's ability to record, process, summarise and report financial data, and has identified for the Company's auditors any material weaknesses in internal controls, and

2. whether or not, there is any fraud that involves management or other employees who have a significant role in the Company's internal

   control; and

3. as indicated in the report, whether or not, there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

The financial statements of the Company for the year ended 31 December 2025 were approved by the directors on 08 April 2026.

HRM Nnaemeka Alfred Achebe, CFR,MNI Ms. Chinyere Ezeugwu Mr. Nicholas Kade Chairman Finance Director Managing Director

FRC/2013/NIM/00000001568

FRC/2013/ICAN/00000000781

FRC/2026/PRO/DIR/003/163045

08 April 2026 08 April 2026 08 April 2026

Pursuant to the provisions of section 405 of the Companies and Allied Matters Act (CAMA), 2020, we the Managing Director/CEO and Finance Director ("the Company") respectively hereby certify as follows:

1. That we have reviewed the audited financial statements of the Company for the year ended 31 December 2025.

2. That the audited financial statements represent the true and correct financial position of our Company as at the said date of 31 December 2025.

3. That the audited financial statements do not contain any untrue statement of material fact or omit to state a material fact, which would make the statement misleading.

4. That the audited financial statements fairly present, in all material respects, the financial condition and results of operation of the Company as of and for the year ended 31 December, 2025.

5. That we are responsible for establishing and maintaining internal controls and affirm that the Company's internal controls were effective as of 31 December, 2025.

6. That there is no fraud that involves management or other employees who have significant role in the Company's internal control as of 31 December, 2025.

7. That the Directors has evaluated the effectiveness of the Company's internal controls within 90 days prior to the date of its audited financial statements.

8. That all significant deficiencies in the design or operation of internal controls which could adversely affect the Company's ability to record, process, summarise and report financial data have been disclosed to the independent Auditor and the Audit Committee.

SIGNED

Mr. Nicholas Kade Managing Director

Ms. Chinyere Ezeugwu Finance Director

FRC/2026/PRO/DIR/003/163045 FRC/2013/ICAN/00000000781

08 April 2026 08 April 2026

To: The Members of International Breweries Plc

In accordance with the provisions of Section 404(7) of the Companies and Allied Matters Act (CAMA), 2020, we the members of the Audit Committee of International Breweries Plc having carried out our statutory functions under the Act, hereby report as follows: -

1. That the accounting and reporting policies of the Company are in accordance with legal requirements and acceptable ethical practices.

2. That the scope and planning of both the external and internal audit for the year ended 31 December, 2025 are satisfactory and reinforce the Company's internal control systems.

3. That having reviewed the external auditors' findings and recommendations on management matters, we are satisfied with management responses thereon.

Finally, we acknowledge the co-operation of management and staff in the conduct of our duties.

Dated this 08 April, 2026

Mr. Babajide Ajani Adetunji FRC/2014/PRO/ICAN/004/00000010550

Members of the Audit Committee for the year under review were:

1. Mr. Michael Ajukwu * (Director's Representative)- Member

2. Mr. Sunday A. Omole ** (Director's Representative)- Member

3. Mrs. Chijioke Ugochukwu (Director's Representative) - Member

4. Mrs. Awuneba Ajumogobia (Director's Representative) - Member

5. Mr. Chisom Nwamara William*** (Shareholders' Representative) - Member

6. Mr. Olalekan Layi Iyiola*** (Shareholders' Representative) - Member

7. Mr. Babajide Ajani Adetunji*** (Shareholders' Representative) - Member

   * Resigned effective 27 March 2025

   ** Resigned effective 5 August 2025

   *** Elected member effective 22 July 2025

   Management's annual assessment of, and report on International Breweries Plc's internal control over financial reporting

   In compliance with the provisions of Section 1.3 of SEC Guidance on Implementation of Sections 88-91 of Investments and Securities Act 2025, we hereby make the following statements regarding the Internal Controls of International Breweries Plc for the year ended 31 December 2025:

   1. International Breweries Plc's management is responsible for establishing and maintaining a system of internal control over financial reporting ("ICFR") that provides reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS Accounting Standards.

   2. International Breweries Plc's management used the Committee of Sponsoring Organization of the Treadway Commission (COSO) Internal Control-Integrated Framework to conduct the required evaluation of the effectiveness of the entity's ICFR.

   3. International Breweries Plc's management has assessed that the entity's ICFR as of the end of 31 December 2025 is effective.

   4. International Breweries Plc's external auditor Messrs PricewaterhouseCoopers that audited the financial statements, included in the annual report, has issued an attestation report on management's assessment of the entity's internal control over financial reporting. The attestation report of Messrs PricewaterhouseCoopers that audited its financial statements will be filed as part of International Breweries Plc's annual report.

Mr. Nicholas Kade Ms. Chinyere Ezeugwu

Managing Director Finance Director

FRC/2026/PRO/DIR/003/163045 FRC/2013/ICAN/00000000781

08 April 2026 08 April 2026

In compliance with the provisions of Section 1.1 of SEC Guidance on Implementation of Sections 88-91 of Investments Securities Act 2025, I hereby make the following statements regarding the Internal Controls of International Breweries Plc for the year ended 31 December 2025:

I, Nicholas Kade certify that;

1. I have reviewed this management assessment on internal control over financial reporting of International Breweries Plc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the entity as of, and for, the periods presented in this report;

4. The entity's other certifying officer and I:

   a b

   c

   d

5. a

   b

   are responsible for establishing and maintaining internal controls;

   have designed such internal controls and procedures, or caused such internal controls and procedures to be designed under our supervision, to ensure that material information relating to the entity, and its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

   have designed such internal control system, or caused such internal control system to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

   have evaluated the effectiveness of the entity's internal controls and procedures as of a date within 90 days prior to the report and presented in this report our conclusions about the effectiveness of the internal controls and procedures, as of the end of the period covered by this report based on such evaluation.

   The entity's other certifying officer and I have disclosed, based on our most recentevaluation of internal control system, to the entity's auditors and the Audit Committee of the entity's board of directors

   All significant deficiencies and material weaknesses in the design or operation of theinternal control system which are

   reasonably likely to adversely affect the entity's ability to record, process, summarize and report financial information; and

   Any fraud, whether or not material, that involves management or other employees who have a significant role in the entity's internal control system.

6. The entity's other certifying officer and I have identified, in the report whether or not there were significant changes in internal controls or other facts that could significantly affect internal controls subsequent to the date of their evaluation including any corrective actions with regard to significant deficiencies and material weaknesses.

Mr. Nicholas Kade Managing Director

FRC/2026/PRO/DIR/003/163045

08 April 2026

In compliance with the provisions of Section 1.1 of SEC Guidance on Implementation of Sections 88-91 of Investments Securities Act 2025, I hereby make the following statements regarding the Internal Controls of International Breweries Plc for the year ended 31 December 2025:

I, Chinyere Ezeugwu certify that;

1. I have reviewed this management assessment on internal control over financial reporting of International Breweries Plc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the entity as of, and for, the periods presented in this report;

4. The entity's other certifying officer and I:

   a b

   c

   d

5. a b

   are responsible for establishing and maintaining internal controls;

   have designed such internal controls and procedures, or caused such internal controls and procedures to be designed under our supervision, to ensure that material information relating to the entity, and its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

   have designed such internal control system, or caused such internal control system to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

   have evaluated the effectiveness of the entity's internal controls and procedures as of a date within 90 days prior to the report and presented in this report our conclusions about the effectiveness of the internal controls and procedures, as of the end of the period covered by this report based on such evaluation.

   The entity's other certifying officer and I have disclosed, based on our most recentevaluation of internal control system, to the entity's auditors and the Audit Committee of the entity's board of directors

   All significant deficiencies and material weaknesses in the design or operation of theinternal control system which are

   reasonably likely to adversely affect the entity's ability to record, process, summarize and report financial information; and

   Any fraud, whether or not material, that involves management or other employees who have a significant role in the entity's internal control system.

6. The entity's other certifying officer and I have identified, in the report whether or not there were significant changes in internal controls or other facts that could significantly affect internal controls subsequent to the date of their evaluation including any corrective actions with regard to significant deficiencies and material weaknesses.

Ms. Chinyere Ezeugwu Finance Director

FRC/2013/ICAN/00000000781

08 April 2026

To the Members of International Breweries Plc

Report on an assurance engagement performed by an independent practitioner to report on management's assessment of controls over financial reporting

In our opinion, nothing has come to our attention that the internal control procedures over financial reporting put in place by management of International Breweries Plc ("the company") are not adequate as at 31 December 2025, based on the SEC Guidance on Implementation of Sections 88 - 91 of The Investments and Securities Act 2025 issued by The Securities and Exchange Commission.

What we have performed

We have performed an assurance engagement on International Breweries Plc's internal control over financial reporting as of December 31, 2025, based on FRC Guidance on Assurance Engagement Report on Internal Control Over Financial Reporting ("the Guidance") issued by the Financial Reporting Council of Nigeria. The company's management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's annual assessment of, and report on International Breweries Plc internal control over financial reporting. Our responsibility is to express an opinion on the company's internal control over financial reporting based on our assurance engagement.

We conducted our assurance engagement in accordance with the Guidance, which requires that we plan and perform the assurance engagement and provide a limited assurance report on the entity's internal control over financial reporting based on our assurance engagement. As prescribed in the Guidance, the procedures we performed included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our engagement also included performing such other procedures as we considered necessary in the circumstances. We believe the procedures performed provide a basis for our report on the internal control put in place by management over financial reporting.

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

We also have audited, in accordance with the International Standards on Auditing, the financial statements of International Breweries Plc and our report dated 9 April 2026 expressed an unqualified opinion.

For: PricewaterhouseCoopers 9 April 2026

Chartered Accountants Lagos, Nigeria FRC/2023/COY/176894

Engagement Partner: Osere Alakhume FRC/2013/PRO/ICAN/004/00000000647

To the Members of International Breweries Plc

Report on the audit of the financial statements

In our opinion, International Breweries Plc's ("the company's") financial statements give a true and fair view of the financial position of the company as at 31 December 2025, and of its financial performance and its cash flows for the year then ended in accordance with international financial reporting standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and the requirements of the Companies and Allied Matters Act and the Financial Reporting Council of Nigeria (Amendment) Act, 2023.

What we have audited

International Breweries Plc's financial statements comprise:

• the statement of profit or loss for the year ended 31 December 2025;

• the statement of other comprehensive income for the year then ended;

• the statement of financial position as at 31 December 2025;

• the statement of changes in equity for the year then ended;

• the statement of cash flows for the year then ended; and

• the notes to the financial statements, which include a summary of material accounting policies.

  Basis for opinion

  We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report.

  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

  Independence

  We are independent of the Company in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards), i.e. the IESBA Code issued by the International Ethics Standards Board for Accountants. We have fulfilled our other ethical responsibilities in accordance with the IESBA Code.

  Key audit matters

  Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

  We have determined that there are no key audit matters to communicate in our report.

  PricewaterhouseCoopers

  FF Millenium Towers, 13/14 Ligali Ayorinde Street, Victoria Island,

  Lagos, Nigeria

  https://www.pwc.com/ng

  Other information

  The directors are responsible for the other information. The other information comprises Corporate information, Report of the directors, Statement of directors' responsibilities, Certification of the audited financial statements, Audit committee's report, Management's annual assessment of, and report on International Breweries Plc's internal control over financial reporting, Certification of management's assessment on internal control over financial reporting, Statement of value added and Five-year financial summary (but does not include the financial statements and our auditor's report thereon), which we obtained prior to the date of this auditor's report, and the other sections of the International Breweries Plc 2025 Annual Report, which are expected to be made available to us after that date.

  Our opinion on the financial statements does not cover the other information and we do not and will not express an audit opinion or any form of assurance conclusion thereon.

  In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

  If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

  When we read the other sections of the International Breweries Plc 2025 Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

  Responsibilities of the directors and those charged with governance for the financial statements

  The directors are responsible for the preparation of the financial statements that give a true and fair view in accordance with IFRS Accounting Standards and the requirements of the Companies and Allied Matters Act, the Financial Reporting Council of Nigeria (Amendment) Act,2023, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

  In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

  Those charged with governance are responsible for overseeing the company's financial reporting process.

  Auditor's responsibilities for the audit of the financial statements

  Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

  As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material

  misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

• Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The Companies and Allied Matters Act requires that in carrying out our audit we consider and report to you on the following matters. We confirm that:

1. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

2. the company has kept proper books of account, so far as appears from our examination of those books and returns adequate for our audit have been received from locations not visited by us;

3. the company's statement of financial position, statement of profit or loss and statement of other comprehensive income are in agreement with the books of account and returns.

In accordance with the requirements of the Securities and Exchange Commission, we performed a limited assurance engagement and reported on management's assessment of International Breweries Plc's internal control over financial reporting as of 31 December 2025. The work performed was done in accordance with FRC Guidance on Assurance Engagement Report on Internal Control Over Financial Reporting issued by the Financial Reporting Council of Nigeria, and we have issued an unqualified opinion in our report dated 9 April 2026.

For: PricewaterhouseCoopers 9 April 2026

Chartered Accountants Lagos, Nigeria

Engagement Partner: Osere Alakhume FRC/2013/PRO/ICAN/004/00000000647

Annual report and financial statements for the year ended 31 December 2025

The notes on pages 27 - 58 are an integral part of these financial statements.

Annual report and financial statements for the year ended 31 December 2025

The notes on pages 27 - 58 are an integral part of these financial statements.

The financial statements on pages 22 to 61 were approved and authorised for issue by the board of Directors on 08 April 2026 and were signed on its behalf by:

HRM Nnaemeka Alfred Achebe, CFR, MNI (Chairman) FRC/2013/NIM/00000001568

Ms. Chinyere Ezeugwu (Finance Drector) FRC/2013/ICAN/00000000781

Mr. Nicholas Kade (Managing Director ) FRC/2026/PRO/DIR/003/163405

International Breweries Plc Annual report and financial statements for the year ended 31 December 2025

Annual report and financial statements for the year ended 31 December 2025

The notes on pages 27 - 58 are an integral part of these financial statements.

1 General information

These financial statements are the financial statements of International Breweries Plc ("the Company"). The Company was incorporated in Nigeria as a private limited liability Company on 22 December 1971 under the Companies and Allied Matters 2020 Act, and is domiciled in Nigeria. The Company became a public limited liability Company on 26 April, 1995. The address of its registered office is: Plot 5A Abuja Street, Banana Island, Ikoyi, Lagos.

The principal activities of the Company are brewing, packaging and marketing of beer, alcoholic flavoured/ non-alcoholic beverages and soft drinks.

The parent Company is AB InBev Nigeria Holdings BV, the ultimate parent Company is Anheuser-Busch InBev SA/NV.

2 Summary of accounting policies

2.1 Introduction to summary of material accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.2 Basis of preparation

The financial statements for the year ended 31 December 2025 have been prepared in accordance with IFRS Accounting Standards and interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS. The financial statements comply with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB).

The financial statements comprise the statement of profit or loss, the statement of other comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and the notes to the financial statements. Additional information required by the Companies and Allied Matters Act (CAMA), 2o2o and the Financial Reporting Council of Nigeria (Amendment) Act, 2023 is included.

The financial statements have been prepared in accordance with the going concern principle under the historical cost concept except

inventories measured at lower of cost and net realisable value, lease liabilities measured at present value of future lease payment, employee benefit obligation measured at present value of the obligation and financial instrument measured at fair value. The method used to measured the fair value are disclosed in Note 2.26.

All values are rounded to the nearest thousand, except when otherwise indicated. The financial statements are presented in thousands of Naira.

The preparation of financial statements in conformity with IFRS Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company's accounting policies. Changes in assumptions may have a significant impact on the financial statements in the period the assumptions changed. Management believes that the underlying assumptions are appropriate and that the Company's financial statements therefore present the financial position and results fairly. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 3.

2.3 Going concern

The financial statements have been prepared on a going concern basis. The directors have no doubt that the Company will be in existence after 12 months from the reporting date. The directors do not intend to cease operations or stop any of the production lines and are confident that the business will continue as a going concern.

The Company returned back to a profit position during the year under review having successfully raised fresh capital through a rights issue and settled the outstanding loan liability in 2024. Going into 2026, the company expects to retain its profitability in the absence of any significant non-operating foreign currency exposure.

The Company generated positive operating cash flows in the current year 2025: N139.32 billion (2024: N148.92 billion) to cover its short-term obligations. The Company is strategically positioned for success in the future and continues to have the backing of its ultimate parent Company.

2.4 Changes in accounting policy and disclosures

2.4.1 New standards and interpretations adopted by the Company

The Company has applied the below standard and amendments for the first time for their annual reporting period commencing 1 January 2025:

a. Amendment to IAS 21 - Lack of exchangeability

The amendments state that a currency is exchangeable into another currency when an entity is able to obtain the other currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism in which an exchange transaction would create enforceable rights and obligations. An entity assesses whether a currency is exchangeable into another currency at a measurement date and for a specified purpose. The assessment of whether a currency is exchangeable into another currency depends on an entity's ability to obtain the other currency and not on its intention or decision to do so. When a currency is not exchangeable into another currency at a measurement date, an entity is required to estimate the spot exchange rate at that date.

The standard had no impact on the Company's financial statements.

2.4.2 New standards, amendments, interpretations issued but not yet effective

The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company's financial statements are disclosed below. The Company intends to adopt these new and amended standards and interpretations when they become effective. All other new standards and amendments do not apply to the Company.

a Amendments to IFRS 9 and IFRS 7: Amendments to the Classification and Measurement of Financial Instruments

IFRS 9 and IFRS 7 are amended to respond to recent questions arising in practice, and to include new requirements not only for financial institutions but also for corporate entities. These amendments:

• clarify the timing of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;

• clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;

• add new disclosures for certain instruments with contractual terms that can change cash flows (such as some financial instruments with features linked to the achievement of environment, social and governance targets); and

• update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI). This standard is effective 1 January 2026.

The new standard is not expected to have material impact on the Company's financial statements.

b Annual Improvements to IFRS Accounting Standards - Volume 11 Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7, IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements, and IAS 7 Statement of Cash Flows

In 2024, the eleventh volume of annual improvements to IFRSs was issued to address a collection of minor amendments to IFRSs. Such amendments are limited to changes that either clarify the wording in a standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in IFRSs. Sections that are amended are as follows:

c IFRS 18, Presentation and Disclosure in Financial Statements

IFRS 18 replaces IAS 1, which sets out presentation and base disclosure requirements for financial statements. The changes, which mostly affect the income statement, include the requirement to classify income and expenses into three new categories - operating, investing and financing - and present subtotals for operating profit or loss and profit or loss before financing and income taxes. This standard is effective 1 January 2027.

The key new concepts introduced in IFRS 18 relate to:

• present specified categories and defined subtotals in the statement of profit or loss

• provide disclosures on management-defined performance measures (MPMs) in the notes to the financial statements

• improve aggregation and disaggregation

The new standard is anticipated to have impact on the Company's financial statements.

d IFRS 19, Subsidiaries without Public Accountability: Disclosures

IFRS 19 allows for certain eligible subsidiaries of parent entities that report under IFRS Accounting Standards to apply reduced disclosure requirements. This new standard works alongside other IFRS. An eligible subsidiary applies the requirements in other IFRS except for the disclosure requirements; and it applies instead the reduced disclosure requirements in IFRS 19.

IFRS 19 is a voluntary standard for eligible subsidiaries. A subsidiary is eligible if:

• it does not have public accountability; and

• it has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards. This standard is effective 1 January 2027.

The directors have assessed this and believe this will not have an impact in the financial statements.

2.5 Revenue recognition Sale of goods

Revenue from the sale of the Company's products is recognised when control of the products is transferred, being at a point in time when the products leave the warehouse. Payment of the transaction price is due immediately.

Revenue is measured at the fair value of the consideration received or receivable, net of value added tax, excise duties, returns, customer discounts and other sales-related discounts. Value added tax is applied on the net purchase price after considering discount. Revenue from the sale of products is recognised in profit or loss when the contract has been approved by both parties, rights have been clearly identified, payment terms have been defined, the contract has commercial substance, and collectability has been ascertained as probable. Collectability of customer's payments is ascertained based on the customer's historical records, guarantees provided, the customer's industry and advance payments made if any.

The methodology and assumptions used to estimate rebates and returns are monitored and adjusted regularly in the light of contractual and legal obligations, historical trends, past experience and projected market conditions. Market conditions are evaluated using wholesaler and other third-party analysis, market research data and internally generated information.

The company gives retrospective discount to selected distributors once the quantity of products purchased during the period exceeds the threshold specified in the contract. Under the terms of the agreements, the amounts payable by the Company are offset against receivables from the distributors and only the net amounts are settled. The relevant amounts have therefore been presented net in the statement of financial position.

The Company issues credit note to customers for products that are damaged or lost in transit and the credit note will be used to reduce the customer receivable balance. No refund is granted for products that are received in good condition by the customer.

There were no refund liability during the year under review.

2.6 Other income

Other income constitutes gains from the sale of assets, net of taxes; proceeds from the sale of by-products; and others. These various sources of income are recognised in profit or loss when ownership has been transferred to the buyer.

2.7 Segment reporting

Performance of operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The board of directors of the Company has appointed a strategic steering committee which assesses the financial performance and position of the Company, and makes strategic decisions. The steering committee, which has been identified as being the chief operating decision maker, consists of the Managing Director and the Finance Director.

Presently, 100 percent of the Company's sales are made in Nigeria. Also, identical risks and returns apply to all Company products.

2.8 Foreign currency translation

1. Functional and presentation currency

   Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The functional currency and presentation currency of the Company is the Nigerian Naira (₦).

2. Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary items denominated in foreign currency are translated using the closing rate as at the reporting date.

Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at exchange rates of monetary assets and liabilities denominated in currencies other than the Company's functional currency are recognized in profit or loss within other gains/(losses) - net.

2.9 Income and deferred tax

The tax for the period comprises income, education and deferred taxes. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is recognised in other comprehensive income or directly in equity. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. Education tax is computed at 3% of the assessable profits.

Hedges that meet all the qualifying criteria for hedge accounting are accounted for, as described below:

Fair value hedges

The change in the fair value of a hedging instrument is recognised in the statement of profit or loss as other expense. The change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the hedged item and is also recognised in the statement of profit or loss as other expense.

For fair value hedges relating to items carried at amortised cost, any adjustment to carrying value is amortised through profit or loss over the remaining term of the hedge using the EIR method. The EIR amortisation may begin as soon as an adjustment exists and no later than when the hedged item ceases to be adjusted for changes in its fair value attributable to the risk being hedged.

If the hedged item is derecognised, the unamortised fair value is recognised immediately in profit or loss.

Cash flow hedges

The effective portion of the gain or loss on the hedging instrument is recognised in OCI in the cash flow hedge reserve, while any ineffective portion is recognised immediately in the statement of profit or loss. The cash flow hedge reserve is adjusted to the lower of the cumulative gain or loss on the hedging instrument and the cumulative change in fair value of the hedged item.

2.10 Derivatives and hedging activities (continued)

Cash flow hedges (continued)

The Company uses forward currency contracts as hedges of its exposure to foreign currency risk in forecast transactions and firm commitments. The ineffective portion relating to foreign currency contracts is recognised as other losses.

The Company designates the full fair value changes in the forward currency contract as a hedging instrument.

The amounts accumulated in OCI are accounted for, depending on the nature of the underlying hedged transaction. If the hedged transaction subsequently results in the recognition of a non-financial item, the amount accumulated in equity is removed from the separate component of equity and included in the initial cost or other carrying amount of the hedged asset or liability. This is not a reclassification adjustment and will not be recognised in OCI for the period. This also applies where the hedged forecast transaction of a non-financial asset or non-financial liability subsequently becomes a firm commitment for which fair value hedge accounting is applied.

If cash flow hedge accounting is discontinued, the amount that has been accumulated in OCI must remain in accumulated OCI if the hedged future cash flows are still expected to occur. Otherwise, the amount will be immediately reclassified to profit or loss as a reclassification adjustment.

2.11 Leases

The Company as lessee

The Company assesses whether a contract is or contains a lease at inception of a contract. The Company recognizes a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and lease of low value assets (defined as leases with a value less than ₦2 million). For these leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease, and payments for these leases are presented in cash flow from operating activities. Contracts may contain both lease and non-lease components and the Company has not elected to separate lease and non-lease components. The Company allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices. Lease terms are negotiated on an individual basis and contain different terms and conditions, including extension and termination options. The lease agreements do not impose any covenants, however, leased assets may not be used as securities.

Lease liability

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate specific to the country, term and currency of the contract. In addition, the Company considers its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating the incremental borrowing rates.

Lease payments include fixed payments, less any lease incentives, variable lease payments that depend on an index or a rate known at the commencement date, payments of penalties for terminating a lease, if the lease term reflects the Company exercising that option and purchase options or extension option payments if the Company is reasonably certain to exercise these options. Variable lease payments that do not depend on an index or rate are not included in the measurement of the lease liability and right-of-use asset and are recognized as an expense in the statement of profit or loss in the period in which the event or condition that triggers those payments occurs.

A lease liability is remeasured upon a change in the lease term, changes in an index or rate used to determine the lease payments or reassessment of exercise of a purchase option. The corresponding adjustment is made to the related right-of-use asset.

The Company has elected to present cash payments for the principal and interest portion of the lease liability within financing activities; and interest expense on lease liability within operating activities.

Right-of-use assets

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, restoration cost and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. The right-of-use assets are depreciated starting at the commencement date over the shorter period of useful life of the underlying asset and lease term. The right-of-use assets are depreciated using a straight line method. The Company leases a number of warehouses, truck, office and residential buildings for certain staff, which typically run for a period of two to three years.

The Company as lessor

Leases where the Company transfers substantially all the risks and rewards of ownership to the lessee are classified as finance leases. Leases of assets under which all the risks and rewards of ownership are substantially retained by the Company are classified as operating leases. Rental income is recognized in other operating income on a straight-line basis over the term of the lease.

2.12 Financial instruments

1. Financial assets

   Financial assets and financial liabilities - Recognition and initial measurement

   Trade receivables are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company become a party to the contractual provisions of the instrument.

   A financial asset or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue.

   Financial assets - classification and subsequent measurement

   Financial assets are not reclassified subsequent to their initial recognition unless the Company change its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

   For purposes of subsequent measurement, financial assets are classified in four categories:

   • Financial assets at amortised cost (debt instruments)

   • Financial assets at fair value through other comprehensive income (OCI) with recycling of cumulative gains and losses (debt instruments)

   • Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)

   • Financial assets at fair value through profit or loss (FVTPL).

   Financial assets - Amortized cost

   A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

   • it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

   • its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

     Financial assets - FVOCI

     A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

   • it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

   • its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

   On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the

   investment's fair value in OCI. This election is made on an investment-by-investment basis.

   All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

   Classification	Measurement	FSLI
   Financial assets at FVTPL	These assets are subsequently measured at fair value in the statement of financial position. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.	Derivatives.
   Financial assets at amortized cost	These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.	Trade and other receivables, restricted cash, cash and cash equivalents, investment securities, amount due from related parties and lease receivables.
   Financial assets at FVOCI (debt instrument)	For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the statement of profit or loss. The remaining fair value changes are recognised in OCI.	The company has no financial assets within this category.
   Financial assets at FVOCI (equity instrument)	The assets are subsequently measured at fair value through OCI. Gains and losses on these financial assets are never recycled to profit or loss.	The company has no financial assets within this category.

   Derecognition

   The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or when it transfers the financial asset and the transfer qualifies for derecognition. Gains or losses on derecognition of financial assets are recognised as finance income/cost.

   2.12 Financial instruments (continued)

   Financial assets - Assessment whether contractual cash flows are solely payments of principal and interest

   For the purposes of this assessment, 'principal' is defined as the fair value of the financial asset on initial recognition. 'Interest' is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.

   In assessing whether the contractual cash flows are solely payments of principal and interest, the Company consider the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition, the Company considers:

   • contingent events that would change the amount or timing of cash flows;

   • terms that may adjust the contractual coupon rate, including variable-rate features;

   • prepayment and extension features; and

   • terms that limit the Company's claim to cash flows from specified assets (e.g. non-recourse features).

   1. Measurement

      At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to the acquisition of the financial asset. Subsequently the Company's debt instruments are measured at amortised cost. The Company's financial assets include trade receivables, intercompany receivables, lease receivable, other receivables, and cash and cash equivalents.

      Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as separate line item in the statement of profit or loss.

   2. Impairment of financial assets

   The Company assesses on a forward looking basis the expected credit losses (ECL) associated with trade receivables carried at amortised cost.

   The measurement of ECL reflects an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes, time value of money and reasonable and supportable information that is available without undue cost or effort at the reporting date, about past events, current conditions and forecasts of future economic conditions.

   The Company applies the simplified approach to determine impairment of its trade receivables. The simplified approach requires expected lifetime losses to be recognised from initial recognition of the trade receivables. This involves determining the expected loss rates which is then applied to the gross carrying amount of the trade receivables to arrive at the loss allowance for the period. See note 4.3a for further details. The Company applies the general approach to determine impairment of its amount due from related parties, lease receivables, investment securities, other receivables and cash and cash equivalent. Under the general approach, a loss allowance for lifetime expected credit losses is recognised for a financial instrument if there has been a significant increase in credit risk which is measured using the lifetime probability of default since initial recognition of the financial asset. If, at the reporting date, the credit risk on a financial instrument has not increased significantly since initial recognition, a loss allowance for 12-month expected credit losses is recognised. The general approach has two bases on which to measure expected credit losses; 12-month expected credit losses and lifetime expected credit losses.

2. Financial liabilities

   The Company's policy on financial liabilities have been consistently applied to the each period.

   1. Recognition and derecognition

      The Company recognises a financial liability in the statement of financial position when it becomes a party to the contractual provisions of the instrument.

      The Company derecognises a financial liability when it is extinguished i.e. when the obligation specified in the contract is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised immediately in the statement of profit or loss.

   2. Classification

      Financial liabilities are classified as either financial liabilities at amortised cost of financial liabilities at fair value through profit or loss. The Company's financial liabilities are classified as financial liabilities at amortised cost. The Company has no financial liabilities in any other category. Management determines the classification of financial liabilities at initial recognition.

      The Company's financial liabilities include trade and other payable and amount due to related parties. They are classified as current liabilities if payment is within one year or less. Otherwise, they are classified as non-current liabilities.

   3. Measurement

      Financial liabilities are recognized initially at fair value, net of any transaction costs. Subsequently, they are measured at amortised cost using the effective interest method.

      Classification	Measurement	FSLI
      Financial liabilities at amortized cost	These liabilities are subsequently measured at amortized cost using the effective interest method. Any interest is recognised in the profit or loss.	Trade and other payable, borrowings, lease liability, amount due to related parties, accrued expenses and unclaimed dividends.

      1. Financial instruments (continued)

3. Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right is not contingent on future events and is enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

Property, plant and equipment are stated initially at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the assets. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the profit or loss during the financial period in which they are incurred. Asset in the course of construction is stated at cost, net of accumulated impairment losses; asset in the course of construction is not depreciated. Property, plant and equipment is de-recognised on disposal or when no future economic benefit is expected from its use or disposal.

- Defined contribution plan

A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. In line with the provisions of the Nigerian Pension Reform Act 2004, the Company instituted a defined contribution scheme for its employees. The scheme is funded by fixed contributions from the employees and the Company at the rate of 8% and 10% of remunerations respectively. The funds are invested outside the Company through Pension Fund Administrators (PFAs) preferred by the employees. The Company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

The matching contributions made by the Company to the relevant PFAs are recognised as employee benefit expenses in the profit or loss when the costs become payable in the reporting periods during which the employees have rendered services in exchange for those contributions. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

Except when a standard or an interpretation permits or requires otherwise, all amounts are reported or disclosed with comparative information.

3 Critical accounting estimates, judgements and errors

The preparation of financial statements in conformity with IFRS Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed herein.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.

1. Impairment of financial assets

   The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company's past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Details of the key assumptions and inputs are disclosed in note 4.3 (a) on impairment losses.

2. Defined benefit obligation

   The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of pension obligations.

   The Company determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Company considers the interest rates of Federal Government bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension obligation.

   Other key assumptions for pension obligations are based in part on current market conditions. Additional information is disclosed in note 22.

3. Deferred taxation

   The Company is subject to income taxes within Nigeria, which does not require much judgment in terms of provision for income taxes but a certain level of judgment is required for recognition of the deferred tax assets. Management is required to assess the ability of the Company to generate future taxable economic earnings that will utilize the deferred tax assets. Assumptions over the generation of future taxable profits depends on management's estimates of future cash flows. This estimate of future taxable income is based on forecast cash flows from operations.

4. Determining the lease terms

   In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options are included in the Company's lease arrangements. These are used to maximise operational flexibility in terms of managing the assets used in the Company's operations. Most of the extension options are subject to mutual agreement by the lessee and lessor and some of the termination options held are exercisable only by the Company.

   3 Critical accounting estimates, judgements and errors (continued)

   1. Determining the lease terms (continued)

      For leases of properties, the following factors are normally the most relevant:

      -If there are significant penalties to terminate (or not extend), the Company is typically reasonably certain to extend (or not terminate).

      • If any leasehold improvements are expected to have a significant remaining value, the Company is reasonably certain to extend (or not terminate).

      • Otherwise, the Company considers other factors, including historical lease durations and the costs and business disruption required to replace the leased asset.

   The lease term is reassessed if an option is actually exercised (or not exercised) or the Company becomes obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs, which affects this assessment, and is within the control of the Company.

5. Derivatives

   The Company enters into derivative financial instruments contracts with counterparties, principally financial institutions with investment grade credit ratings. Foreign currency forward or futures contracts are valued using forward pricing valuation technique, which employs the use of market observable inputs using present value calculations. The model incorporates various inputs including foreign exchange spot and forward rates, currency basis spreads between the respective currencies, interest rate curves and forward rate curves. The changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships. See note 4.2 for sensitivity analysis disclosure.

6. Deposit liability and fixed assets quantity estimation for market losses

   The Company has applied judgement in estimating the value of deposit liabilities outstanding as at year end and the returnable containers with customers. A deposit liability is generated upon sale of finished goods to customers and refunded upon return of empty containers. Initial measurement is based on consideration received from customers upon sale to be refunded upon return. The deposit liability is subsequently measured by accounting for market losses on a quarterly basis using trade returns data to estimate days of coverage required mutliplied by the average daily liability. The number of days coverage required, also known as Time in Market (TIM), is the time it takes for a container to be returned to us after a sale. The estimated container market loss/gain impact is written off or written back to the deposit liability.

   The returnable containers is made up of actual quantity held and estimated quantity in market. The estimated quantity in market is determined using the average daily quantity and applicable TIM. The estimated container impact is written off or written back from property, plant and equipment.

7. Net realisable value of inventory

   Net realisable value of inventory is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated cost necessary to make the sale. The Company estimate selling price of inventory based on current market condition, including supply and demand mechanism, pricing trends and macro-economics conditions that might affect the selling price of the inventory. The Company also evaluate historical sales data and patterns to understand the inventory performance in the past to provide insights to likely selling price in the future, adjusted for factors such as inventory damage, obsolescence, change in technology. The Company estimated selling cost include marketing expenses, commission on sales, shipping costs and other incidental cost directly related to the sale. If the inventory require further processing or manufacturing before it can be sold, estimated cost of completion will include material cost, labour cost and overhead necessary to complete the inventory.

8. Estimated useful lives of property, plant and equipment

Property, Plant and Equipment are depreciated over their useful lives. The Company estimates the useful lives of property, plant and equipment based on the period over which the assets are expected to be available for use. The estimation of the useful lives are based on technical evaluations carried out by experts and those staff with knowledge of the assets and experience with similar assets. Estimates could change if expectations differ due to physical wear and tear and technical or commercial obsolescence. It is possible, however, that future results of operations could be materially affected by changes in the estimates brought about by changes in factors mentioned above. The amounts and timing of expenses for any period would be affected by changes in these factors and circumstances. A reduction in the estimated useful lives of the plant and machinery would increase expenses and decrease the value of property, plant and equipment.