1 Top Management and Board of Directors; 2 Peer Comparison & Ranking of NB; 3 Currency Synopsis: Nigerian Naira (NGN) Top Management and Board of Directors Top Management Top Management [Three top executives with tenure > 16 yrs] Name Designation Since Appointment Uaboi Agbebaku Company Secretary 16 Yrs, 3 Mos Nicolaas Vervelde Chief Executive Officer - Kolawole Jamodu Non-Executive Chairman - Board Of Directors Board Of Directors [Nine directors with tenure > 10 yrs] Name Designation Since Appointment Mark P. Rutten Director 10 Yrs, 3 Mos Olusegun Adebanji Non-Executive Director 17 Yrs, 3 Mos Sijbe Hiemstra Non-Executive Director 13 Yrs, 3 Mos Frank Nweke Non-Executive Director 13 Yrs, 3 Mos Atedo Peterside Non-Executive Director 16 Yrs, 3 Mos Thomas de Man Non-Executive Director 21 Yrs, 3 Mos Obadiah Mailafia Director - Ishmael Yamson Non-Executive Director - Paul Hamers Non-Executive Director - Peer Comparison & Ranking of NB GLOBAL PEER COMPARISON: NB - SIZE (all figures in $) In its Global Peer Group of 9 companies NB is ranked second (2) by Revenue, Total Assets, third (3) by Net Profit and fifth (5) by MCap. Name (Code) MCap Revenue Net Profit Total Assets Rank of NB 5 2 3 2 Nigerian Breweries (NB) 247.9M 458.7M 11M 516.4M Kofola CeskoSlovensko (KOFOL) 258.4M 330.8M 11.3M 315.2M Shakey's Pizza Asia Ventures (PIZZA) 255.9M 96.8M 2.2M 223.2M Sermsuk (SSC) 250.3M 343.9M 6.8M 384.6M Wawel (WWL) 248.2M 128.6M 10.8M 202.1M Orsero (ORS) 243.3M 1.3B 34.4M 555.8M Gansu Huangtai Wine-Marketing Industry - A Share (000995) 239.9M 18.9M 1M 67.2M Gansu Mogao Industrial Development - A Share (600543) 233.8M 19.4M (13.6M) 166M Lontrue (300175) 230.9M 41.3M (25.6M) 138.6M GLOBAL PEER COMPARISON: NB - RELATIVE VALUE INDICATORS In value terms, comparing relative value of its shares, NB is ranked + 2 out of 9 by Price/Earnings per share [17.7] + 2 out of 9 by Price/Sales per share [0.5] + 5 out of 9 by Price/Book value per share [3.8] Name (Code) Currency Code Last Price Div Yld (%) P/E P/S P/Book Rank of NB by value 2 2 5 Nigerian Breweries (NB) NGN 27.9 17.7 0.5 3.8 Kofola CeskoSlovensko (KOFOL) CZK 276 4.9 21.5 0.8 Shakey's Pizza Asia Ventures (PIZZA) PHP 9.5 1.1 Sermsuk (SSC) THB 34.5 1.5 37.1 0.7 1.0 Wawel (WWL) PLN 658 1.5 22.6 1.4 Orsero (ORS) EUR 13.3 2.6 7.3 0.2 1.6 Gansu Huangtai Wine-Marketing Industry - A Share (000995) CNY 9.8 15.2 Gansu Mogao Industrial Development - A Share (600543) CNY 5.3 1.6 Lontrue (300175) CNY 3.5 USD 1= 1154.676736 Nigerian Naira (NGN) BUYSELLSIGNALS FUNDAMENTALS VALUATION RANKING: Nigerian Breweries vs Nigerian Market Out of 116 stocks in the Nigerian Market, Nigerian Breweries is ranked twentieth(20) by P/Sales, Twenty-seventh(27) by Net Profit $, Thirty-sixth(36) by Discount to 52-Wk High and Forty-second(42) by P/Earnings. Nigerian Avg NB NB Rank P/Sales 2.4x 0.5x 20 Net Profit $ 20.5 M 11.4 M 27 Discount to 52-Wk High (%) 15.2 40.1 36 P/Earnings 16.6x 17.6x 42 P/Earnings/ Growth 1.5x 27.7x 42 Total Debt/Equity (the lower the better) 0.8x 0.7x 54 EPS Growth YOY (%) 11.3 0.6 61 ROA (%) 3.1 2.1 71 ROE (%) 16.2 7.3 72 Price/Net Tangible Assets 6.1x 3.7x 80 EBITDA Margin% 25.8 4.7 82 Negative values are shown in brackets. Stock in Index and Stock in Sector Description NB All Shares Index % of All Shares Index Food/beverage/tobacco sector % of Food/beverage/tobacco sector Net Profit $ 11.4 M 782.7 M 1.5 67.1 M 17.0 Revenue $ 476.9 M 5.6 B 8.5 2.8 B 17.3 Total Assets $ 536.8 M 40.5 B 1.3 2.7 B 20.1 MCap $ 247.9 M 7.6 B 3.3 1.5 B 16.5 Relative Valuation Indicators: Stock vs Index and Stock vs Sector Description NB All Shares Index Avg. Food/beverage/tobacco sector Avg. Price/Earnings 17.6 8.7 22.4 P/Earnings/Growth 27.67 0.35 -1.36 Price/Net Tangible Assets 3.74 1.48 3.28 Total Debt/Equity (the lower the better) 0.68x 0.5x 1.85x GLOBAL RANK [out of 46,442 stocks] AND RANK OF NIGERIAN BREWERIES IN THE MIDDLE EAST & AFRICA REGION [out of 1,899 stocks] Description Value Global Rank In MEA Region MCap ($) 247.9M 17,372 634 Total Assets ($) 516.4M 14,376 594 Revenue ($) 458.7M 10,557 297 Net Profit ($) 11M 15,317 657 Return on Equity % 7.3 17,519 858 Net Profit Margin % 2.4 23,663 1,222 Price to Book 3.8 28,893 1,203 Price/Earnings 17.7 13,202 694 PV1000 (1Year) $* 303 40,165 1,429 $* Change (1Year) % -70.5 40,177 1,429 * 1 year ago $1 = NGN 460.41 Apr 16, 2024: $ 1 equals NGN 1,154.73 RANK OF NIGERIAN BREWERIES IN THE ALL SHARES INDEX [out of 83 stocks], IN THE NIGERIAN MARKET [out of 124 stocks] AND IN THE FOOD/BEVERAGE/TOBACCO SECTOR [out of 12 stocks] Description Value In All Shares Index In Nigerian Market In Food/beverage/tobacco sector MCap (NGN) 286.3B 9 20 2 Total Assets (NGN) 619.9B 12 20 2 Revenue (NGN) 550.6B 3 7 2 Net Profit (NGN) 13.2B 16 25 4 Return on Equity % 7.3 47 68 6 Net Profit Margin % 2.4 51 79 6 Price to Book 3.7 63 92 8 Price/Earnings 17.6 44 58 5 PV1000 (1Year) NGN 761 73 105 9 LONG-TERM FUNDAMENTAL RANKING: 4 OUT OF 5 [5 is best] Nigerian Breweries is ranked number 2 out of 12 listed food/beverage/tobacco companies in the Nigeria with a market capitalization of NGN286.3 billion ($247.9 million). In the food/beverage/tobacco companies it has the 2nd highest total assets and 2nd highest revenues. Within its sector it has a relatively moderate P/E of 17.6 and low Price/Sales of 0.5. It has a moderate relative ROE of 7.3% and ROA of 2.1%. Finally, its earnings growth in the past 12 months has been a comparatively low 0.6%. Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1. Currency Synopsis: Nigerian Naira (NGN) % Change of NGN vs Currency Basket Period-Based In the past year the Nigerian Naira fell 60.1% against the US Dollars; in the past three years the Nigerian Naira fell 67.0% against the US Dollars. Last Country 1-day % 1-week % 1-Year % 3-Yrs % NGN1=0.001USD United States Of America 7.4 12.3 -60.1 -67.0 NGN1=0.006CNY China 7.7 12.7 -57.9 -63.5 NGN1=0.134JPY Japan 8.1 14.1 -53.6 -53.6 NGN1=0.001EUR European Union 7.4 14.6 -58.5 -63.1 NGN1=1.201KRW South Korea 8.3 15.0 -57.6 -59.2 NGN1=0.001SGD Singapore 7.5 13.5 -58.9 -66.5 NGN1=0.001NZD New Zealand 8.4 13.8 -57.9 -60.9 NGN1=0.001GBP United Kingdom 8.4 14.3 -59.8 -63.6 NGN1=0.001AUD Australia 7.6 14.7 -58.3 -61.0 NGN1=0.007HKD Hong Kong 7.6 12.6 -60.1 -66.7 NGN1=0.001CHF Switzerland 7.8 13.5 -58.9 -67.4 NGN1=0.001CAD Canada 8.0 13.8 -59.0 -63.7 NGN1=0.009SEK Sweden 8.6 14.8 -57.8 -58.0 NGN1=0.009NOK Norway 8.0 15.2 -57.9 -57.5 NGN1=0.014MXN Mexico 7.3 14.6 -63.1 -72.7 1 Financials as Reported FY 2022, Past 10 Years Financials as Reported FY 2022, Past 10 Years Financials as reported (FY 2022 [year-ended 31 December 2022 ]) RESULTS OF OPERATIONS AND FINANCIAL CONDITION (In NGN Thousand, except per share data and shares outstanding) INCOME STATEMENT AS REPORTED (FY 2022 [year-ended 31 December 2022 ]) Description NGN Thousand NGN Thousand Dec 31 2022 2021 Change % Revenue 550,637,994 437,285,189 Up 25.9 Cost of sales -337,310,437 -276,871,996 Deterioration 21.8 Gross profit 213,327,557 160,413,193 Up 33.0 Other income 2,986,746 4,626,570 Down 35.4 Selling and distribution expenses -135,829,790 -98,358,455 Deterioration 38.1 Administrative expenses -28,153,418 -26,241,295 Deterioration 7.3 Net release of expected credit* loss on financial assets -575,074 1,054,261 Deterioration Profit from operating activities 51,756,021 41,494,274 Up 24.7 Finance income 349,192 313,523 Up 11.4 Net loss on foreign exchange transactions -26,342,415 -7,041,448 Deterioration 274.1 Finance costs -8,422,249 -11,065,209 Improved 23.9 Net finance costs -34,415,472 -17,793,134 Deterioration 93.4 Profit before tax 17,340,549 23,701,140 Down 26.8 Income tax expense -4,153,788 -11,029,181 Improved 62.3 Profit after tax 13,186,761 12,671,959 Up 4.1 Profit for the year attributable to: Owners of the Company 13,182,211 12,665,701 Up 4.1 Non-controlling interest 4,550 6,258 Down 27.3 Profit for the year 13,186,761 12,671,959 Up 4.1 Earnings per share Basic earnings per share (kobo) NGN1.58 NGN1.57 Up 0.6 Diluted earnings per share (kobo) NGN1.58 NGN1.57 Up 0.6 Weighted average number of ordinary shares 8,042,944,463 7,996,902,051 Up 0.6 BALANCE SHEET AS REPORTED (FY 2022 [year-ended 31 December 2022 ]) Description NGN Thousand NGN Thousand Dec 31 2022 2021 Change % ASSETS Property plant and equipment 358,967,704 257,216,814 Up 39.6 Right-of-use assets 9,901,779 12,520,277 Down 20.9 Intangible assets and goodwill 93,425,102 94,334,332 Down 1.0 Investments 150,000 150,000 Steady Other receivables 2,022,169 1,134,459 Up 78.2 Non-current assets 464,466,754 365,355,882 Up 27.1 Inventories 83,517,310 62,191,510 Up 34.3 Trade and other receivables 40,709,753 26,500,516 Up 53.6 Prepayments 1,958,201 2,852,868 Down 31.4 Deposit for imports 6,898,323 11,891,422 Down 42.0 Cash and cash equivalents 22,180,841 16,730,029 Up 32.6 Assets held for sale 157,500 Current assets 155,421,928 120,166,345 Up 29.3 Total assets 619,888,682 485,522,227 Up 27.7 EQUITY Share capital 5,138,066 4,037,916 Up 27.2 Share premium 82,943,935 77,499,797 Up 7.0 Share based payment reserve 944,383 170,753 Up 453.1 Retained earnings 90,773,894 90,094,911 Up 0.8 Equity attributable to owners of the Company 179,800,278 171,803,377 Up 4.7 Non-controlling interest 113,437 108,887 Up 4.2 Total equity 179,913,715 171,912,264 Up 4.7 LIABILITIES Loans and borrowings 2,425,875 4,097,694 Down 40.8 Lease liabilities 14,622 2,733,579 Down 99.5 Employee benefits 11,422,347 10,964,102 Up 4.2 Deferred tax liabilities 18,407,463 23,281,997 Down 20.9 Non-current liabilities 32,270,307 41,077,372 Down 21.4 Loans and borrowings 119,824,926 23,887,436 Up 401.6 Lease liabilities 17,313 654,631 Down 97.4 Current tax liabilities 13,002,683 10,623,647 Up 22.4 Dividend payable 9,007,012 10,437,847 Down 13.7 Trade and other payables 264,089,648 226,418,019 Up 16.6 Provisions 1,763,078 511,011 Up 245.0 Current liabilities 407,704,660 272,532,591 Up 49.6 Total liabilities 439,974,967 313,609,963 Up 40.3 Total equity and liabilities 619,888,682 485,522,227 Up 27.7 CASH FLOW AS REPORTED (FY 2022 [year-ended 31 December 2022 ]) Description NGN Thousand NGN Thousand Dec 31 2022 2021 Change % Profit for the year 13,186,761 12,671,959 Up 4.1 Adjustments for: Depreciation 38,033,326 39,777,442 Down 4.4 Amortisation of intangible assets 1,567,363 1,522,215 Up 3.0 Finance income -349,192 -313,523 Deterioration 11.4 Interest expenses 8,422,249 11,065,209 Down 23.9 Gain/ (Loss) on foreign exchange transactions -122,480 46,463 Deterioration Employee benefit charge 1,661,588 298,482 Up 456.7 Share based payment charge 1,307,194 -43,753 Recovery Gain on sale of property plant and equipment -692,924 -2,982,451 Improved 76.8 Changes in provisions 1,252,067 475,157 Up 163.5 Income tax expense 4,153,788 11,029,181 Down 62.3 68,419,740 73,546,381 Down 7.0 Changes in: Inventories -21,325,800 -26,104,300 Improved 18.3 Trade and other receivables -15,096,947 -15,306,177 Improved 1.4 Prepayments 894,667 892,554 Up 0.2 Trade and other payables 21,853,544 96,538,921 Down 77.4 Deposit for imports 4,993,099 -315,912 Recovery Cash generated from operating activities 59,738,303 129,251,467 Down 53.8 Income tax paid -6,675,437 -8,142,435 Improved 18.0 Gratuity paid -930,560 -823,757 Deterioration 13.0 Other long term employee benefits paid -1,379,880 -694,629 Deterioration 98.6 Share-based payment -533,564 VAT paid -27,690,633 -27,975,295 Improved 1.0 Net cash from operating activities 22,528,229 91,615,351 Down 75.4 Cash flows from investing activities Finance income 349,192 313,523 Up 11.4 Proceeds from sale of property plant and equipment 434,826 54,576 Up 696.7 Acquisition of property plant and equipment -97,860,954 -59,406,797 Deterioration 64.7 Acquisition of right-of-use asset -1,523,596 -1,390,308 Deterioration 9.6 Acquisition of intangible assets -658,133 -584,229 Deterioration 12.6 Net cash used in investing activities -99,258,665 -61,013,235 Deterioration 62.7 Cash flows from financing activities Repayment of loans and borrowings -66,782,300 -95,449,588 Improved 30.0 Proceeds from loans and borrowings 161,047,971 67,601,949 Up 138.2 Repayment of lease liabilities -113,540 -8,638,138 Improved 98.7 Interest paid -4,648,017 -5,461,161 Improved 14.9 Cash received from Registrars 141,441 2,730,756 Down 94.8 Dividends paid -7,586,787 -4,979,289 Deterioration 52.4 Net cash from (used in) financing activities 82,058,768 -44,195,471 Recovery Net increase (decrease) in cash and cash equivalents 5,328,332 -13,593,355 Recovery Effect of foreign exchange rate changes on cash and cash equivalent 122,480 -46,463 Recovery Cash and cash equivalents at 1st January 16,730,029 30,369,847 Down 44.9 Cash and cash equivalents at 31st December 22,180,841 16,730,029 Up 32.6 Download NIGERIAN BREWERIES Financials Past 10 Years Description (December 31) 2022 2021 2020 2019 2018 Income Statement Revenue per share 68.46 54.68 42.32 40.56 40.56 EBIT (B) 25.8 34.8 29.9 35.5 37.3 Interest (B) 8.4 11.1 18.3 12.1 7.9 Profit before tax (B) 17.3 23.7 11.6 23.4 29.4 Tax (B) (4.2) (11) (4.2) (7.2) (10) Net profit (B) 13.2 12.7 7.4 16.1 19.4 EPS 1.58 1.57 0.92 2.01 2.43 Balance Sheet Equity Share Capital (B) 179.8 171.8 161.1 167.7 166.7 Retained Earnings (B) 90.8 90.1 83.1 89.4 88.2 Total Debt (B) 122.3 31.4 91.4 55.7 42.6 Total Assets (B) 619.9 485.5 445.9 382.8 388.3 Current Asset (B) 155.4 120.2 93.2 72.5 86.3 Fixed Asset (B) 359 257.2 213.4 201.9 203.5 Working Capital (B) (252.3) (152.4) (117.3) (55) (63.1) Cash Flow Operating Cash Flow (B) 22.5 91.6 83.3 38.9 30.5 Investing Cash Flow (B) (99.3) (61) (37.2) (30.1) (29.8) Financing Cash Flow (B) 82.1 (44.2) (22.1) (15.7) (2.8) Net Cash Flow (B) 5.3 (13.6) 24 (7) (2.1) Description (December 31) 2017 2016 2015 2014 2013 Income Statement Revenue per share 43.26 39.7 35.87 Other Revenue 615.7 M 1.7 B 2.1 B EBIT (B) 57.3 53.3 70.4 69.7 Interest (B) 10.7 13.6 15.9 7.5 Profit before tax (B) 46.6 39.7 54.5 62.2 Tax (13.6 B) 11.3 B 16.5 B 18.9 B (19.2 M) Net profit (B) 33 28.4 38.1 42.5 43.1 EPS 4.13 3.58 482 562 5.7 Balance Sheet Equity Share Capital (B) 178.2 165.8 172.2 172 112.4 Retained Earnings (B) 99.7 96.3 103 104 Total Debt (B) 8.5 17.9 22.2 10.7 9 Total Assets (B) 382.2 367.1 356.2 349.2 252.8 Current Asset (B) 87.5 74.6 57.5 52.7 45.3 Fixed Asset (B) 195.2 191.2 197.3 193.8 153.4 Working Capital (B) (68.6) (69.7) (82.6) (61.3) (55) Cash Flow Operating Cash Flow (B) 72.1 70.2 72.6 60.9 95.2 Investing Cash Flow (B) (32.1) (18.8) (32.4) (28.6) (32.5) Financing Cash Flow (B) (35.9) (26) (59.8) (36.3) (62.6) Net Cash Flow 4.1 B 25.4 B (19.6 B) (4.1 B) 14.6 M