GUINNESS F13 Full Year Briefing

Seni Adetu, Managing Director /CEO
Lisa Nichols, Finance/Strategy Director
Sesan Sobowale, Corporate Relations Director
AGENDA
ITEM
PRESENTER
SLIDE
Introduction
Seni Adetu
Company Overview
Seni Adetu
Market and Performance Overview
Seni Adetu
Financial Performance
Lisa Nichols
11
Highlights of the year
Seni Adetu
16
Strategic priorities
Seni Adetu
24
Conclusions
Seni Adetu
26
Q&A
Sesan Sobowale
28
COMPANY OVERVIEW
OUR COMPANY
Guinness Nigeria is a part of Diageo the worlds foremost premium alcoholic drinks
company. We have been in Nigeria since 1962 with a strong pedigree operating from four
sites - 2 in Lagos (Ogba & Ikeja), Benin and Aba.
Strong portfolio diversity including alcoholic and non-alcoholic beverages covering a wide
range of consumer segments and choices
Commitment to significant investment to deliver long-term growth
Major investments in capacity expansion
Almost doubled sales in 4years
Largest Guinness market in the world in net sales
Strong values: Performance culture, developing talent, positively impacting the

communities in which we operate, strong governance and ethical standards
OUR BRANDS
We have a diverse portfolio of brands that are adored by Nigerian
consumers. These include:
STOUT
- Guinness Foreign Extra
Stout
- Guinness Extra Smooth
LAGER
RTD
- Harp Lager
- Smirnoff Ice
- Dubic Lager
- Snapp
- Satzenbrau
NON-ALCOHOLIC
- Malta Guinness
- Malta Guinness Low
Sugar
- Top Malt
OUR AMBITION
Guinness Nigeria Plc is the best performing, most

trusted and respected consumer products company in
Nigeria
Employer of Choice
Superior Total
Shareholder
Returns
Most reputable in
the Community
MARKET & PERFORMANCE OVERVIEW
Economic indicators:
GDP has been growing and averaging 6% - 8% in

past two years
Nigeria to remain in top quartile of GDP growth from

2011-2016
Inflation Rate averaging 10% Y.O.Y
Opportunities:
Challenges:
Rapid growth of emerging middle class: (20m living

on $2-4per day)
Pressured Consumer Discretionary Income leading to

re-prioritization
Positive economic fundamentals in the medium

term
Declining government revenue due to lower output
Security challenges especially in the Northern parts of

the country
Election in 2015 likely to encourage spending
Power sector privatisation to improve energy

supply
Source: Euromonitor International world Economic outlook ; Nigeria Bureau of Statistics
KEY DRIVERS OF PERFORMANCE

Performance Overview:
Net Revenue
Operating Profit
Profit After Tax
Growth %
5%
6%
-17%
Market softness:
De-prioritization of beer by consumers, declining discretionary income , down trading leading to faster
growth of value brands, government spending behind plan, Malt market declining at a lower rate
Investment in capacity :
Flexibility in meeting changing consumer trends, channel is still logistically expensive to service,
Increased interest cost
RtC competitiveness :
Invested in additional sales force to improve outlet coverage, GDCs deployed to over 200 areas in
Nigeria
Representation in large/growing segments:
Innovation of value brands, RTDs exploitation , Low sugar malt innovation
FINANCIAL PERFORMANCE
GN PLC F13 RESULTS COMPREHENSIVE INCOME
Q4 F13
Nbillion
36.5
Growth
%
7%
FY F13
Nbillion
131.4
Growth
%
4%
Net Revenue
34.0
8%
122.5
5%
Cost of Sales
(18.2)
13%
(66.4)
8%
Gross Profit
15.8
3%
56.1
2%
Marketing & Distr.
(6.6)
18%
(26.0)
6%
Admin Costs
(2.9)
28%
(10.3)
9%
Gross Revenue
GN PLC F13 RESULTS COMPREHENSIVE INCOME
Operating Profit
Q4 F13
Nbillion
6.8
Growth
%
-9%
FY F13
Nbillion
20.6
Growth
%
-6%
Financing charges
(1.1)
52%
(3.6)
138%
PBT
5.8
-15%
17.0
-17%
Tax
(1.3)
-21%
(5.1)
-17%
PAT
4.5
-13%
11.9
-17%
EPS
K
299
-14%
K
793
-18%
DRIVERS OF PROFIT BEFORE TAX

Drivers of PBT decline F13 vs. LY (Nbillion)
6.9
-0.9
-5.1
-1.4
20.4
Capacity expansion
depreciation
-0.8
0.1
-2.1
17.0
Expansion
investment
2012
PBT
Price
Volume
CoGS
Mktg &
distr.
Admin
costs
Other
income
Financing
2013
PBT
GN PLC F13 RESULTS - FINANCIAL POSITION

FY F13
Nbillion
88.8
FY F12
Nbillion
77.2
Movt
Nbillion
11.6
Inventories
12.4
13.2
(0.8)
Receivables
16.6
10.8
5.8
Cash
3.2
4.8
(1.6)
Total Assets
121.1
106.0
15.1
Current Liabilities
(51.3)
(45.2)
(6.1)
Non-Current Liabilities
(23.7)
(22.2)
(1.5)
Equity
(46.0)
(38.6)
(7.4)
Net Equity & Liabilities (121.1)
(106.0)
(15.1)
Non-Current Assets
HIGHLIGHTS OF F13
HIGHLIGHTS OF F13
Brands
Innovation
Route to
Consumer
Supply
Reputation
People
HIGHLIGHTS - BRANDS
Guinness
Harp & Dubic
Malta Guinness
EPL broadcast Sponsorship

Fly With The Eagles Campaign
AFCON Campaign and
Jersey Tour
Made of More campaign
Partnership with football

Improved media and OOH visibility
Harp rhythm unplugged
Smirnoff Ice
Promoting healthier living

Competitive pricing
Distribution drive and
consumer experience
Smirnoff Midnight Circus

events
Distribution drives
18
HIGHLIGHTS - INNOVATION
H2
H1
Malta Guinness Low Sugar
Launched nationally in May F12

F13 saw weighted distribution grow by
double digits
Snapp
Rolled out nationally

Refreshed advertising
Snapp
Launched in Lagos and 4 other cities Abuja,

Benin, Port Harcourt and Calabar
Snapp sleek cans launched in Dec 2012
Dubic
New green bottle

Regional expansion
Top Malt
Pack redesign for

national re-launch
19
HIGHLIGHTS - ROUTE TO CONSUMER

Cold & Events
GDC
Branding
Guinness Distribution Centres

(GDC) driving rural redistribution
Roll out progressing well
Investments in project cold

Special events supporting
social events driving
convenience & visibility
Sales coverage
Additional sales vans
Maximised opportunity in Key
Account.
Increased visibility via Kitting of
Bar men
Distributor warehouse
branding
Flagship outlet branding
20
HIGHLIGHTS - SUPPLY
Gas / Diesel Generator
and Boilers
CO Plant and
Loading capacity
21
OUR WORK IN THE COMMUNITY

Quality & Safety
Responsible Drinking & Community Investments
Harp Lager Beer & Malta Guinness

won the 2012 Monde Gold Quality
Award
Project DIY: skills training

for children's in the
orphanages.
Zero LTA award by Nigerian

Employers Consultative Association
(NECA) and the Nigerian Social
Insurance Trust Fund (NSITF).
The Social Enterprise

Report Awards (SERA) for
Best Company in Labour
Practice
World AIDS campaign

Motor Park Health and Safety
Programme with Lagos State
Won Best Private Sector
Company Supporting Water
Sector (Min of Water Res)
WOL in Ago Ibami and Oza Nogogo

Relief materials to flood victims in Edo
State.
Technical education scholarships to
students
HIGHLIGHTS PEOPLE
Talent Development
We have secured more local leaders externally to strengthen our leadership pipeline
We have made internal movements and promotions to fill vacancies created to support our growth ambitions
Eyitemi Taire
Afeez Ajibowu Patrick Awotwi
Gender diversity of leadership population improving

Chizoba Ojielo
Innocent
Nwaononiwu
Kingsley
Imade
Employee Engagement
Dedicated engagement resources working with teams to resolve issues
Significant progress in employee engagement with improved communications and increased leadership team engagements
Development / career plans and moves are also key to engagement
Capability
Introduction of an in-house sales academy to upscale our sales capability
Vibrant employee awards scheme
23
STRATEGIC PRIORITIES
Strengthen and accelerate our premium core brands
Innovate at scale to meet new consumer needs
Build and then constantly extend our advantage in
Route to Consumer (RtC)
Drive out cost to invest in growth
Guarantee our plans with the right people and

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

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Seni Adetu, Managing Director /CEO

Lisa Nichols, Finance/Strategy Director

Sesan Sobowale, Corporate Relations Director

Market and Performance Overview

Highlights of the year

Major investments in capacity expansion

Almost doubled sales in 4years

Largest Guinness market in the world in net sales

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

Guinness Nigeria Plc is the best performing, most

MARKET & PERFORMANCE OVERVIEW

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

Nigeria to remain in top quartile of GDP growth from

Inflation Rate averaging 10% Y.O.Y

Rapid growth of emerging middle class: (20m living

Pressured Consumer Discretionary Income leading to

Positive economic fundamentals in the medium

Declining government revenue due to lower output

Security challenges especially in the Northern parts of

Election in 2015 likely to encourage spending

Power sector privatisation to improve energy

Source: Euromonitor International world Economic outlook ; Nigeria Bureau of Statistics

KEY DRIVERS OF PERFORMANCE

GN PLC F13 RESULTS COMPREHENSIVE INCOME

Marketing & Distr.

GN PLC F13 RESULTS COMPREHENSIVE INCOME

DRIVERS OF PROFIT BEFORE TAX

GN PLC F13 RESULTS - FINANCIAL POSITION

Net Equity & Liabilities (121.1)

Harp & Dubic

EPL broadcast Sponsorship

Partnership with football

Promoting healthier living

Smirnoff Midnight Circus

Launched nationally in May F12

Rolled out nationally

Launched in Lagos and 4 other cities Abuja,

New green bottle

Pack redesign for

HIGHLIGHTS - ROUTE TO CONSUMER

Guinness Distribution Centres

Investments in project cold

OUR WORK IN THE COMMUNITY

Responsible Drinking & Community Investments

Harp Lager Beer & Malta Guinness

Project DIY: skills training

Zero LTA award by Nigerian

The Social Enterprise

World AIDS campaign

WOL in Ago Ibami and Oza Nogogo

Afeez Ajibowu Patrick Awotwi

Gender diversity of leadership population improving

Guarantee our plans with the right people and

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