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