CHEMICAL AND ALLIED PRODUCTS : EARNINGS RELEASE

PRESS RELEASE Regulated Information

Audited Financial Results for the Year Ended 31 December 2022

Lagos, 30 March 2023 - Chemical and Allied Products Plc ("CAP" or the "Company"), Nigeria's leading paints and coatings company, today announced its audited results for the year ended 31 December 2022.

Highlights

• • Revenue at N19.2 billion, an increase of 35% compared to N14.2 billion in FY 2021.

• • Gross profit 67% higher at N7.6 billion. Gross margin at 40%, a significant improvement from 32% last year.

• • Operating profit 109% ahead of FY 2021 at N3.1 billion.

• • Profit before tax of N3.4 billion, up 99% from N1.7 billion in FY 2021.

• • Total profit of the year of N2.4 billion, a 112% increase compared to N1.1 billion last year.

• • Earnings per share of 292 kobo, up 93%.

• • Proposed FY 2022 dividend of 155 kobo per share.

Commenting on the results, Managing Director, Bolarin Okunowo, stated:

"Our strong performance in FY 2022, is proof of our resilience as a business. Although the macroeconomic environment has been challenging, we continue to deliver on our key objectives of providing high quality products and services that delight our customers. Going forward, we will consolidate on the positive momentum built from investments in our people, brands as well as operational and distribution infrastructure to continue to meet and exceed our customers' expectations".

The Company is pleased to announce that its Board of Directors has proposed a full year dividend of ₦1.26 billion, which represents 155 kobo per ordinary share of 50 kobo each, for payment to shareholders. This will be subject to the appropriate withholding tax and the approval of the shareholders at the forthcoming Annual General Meeting ("AGM").

Performance Summary

In million ₦, unless otherwise stated	FY 2022	FY 2021	YoY
Revenue	19,208	14,208	35%
Gross Profit	7,614	4,558	67%
Gross Margin (% of Revenue)	40%	32%	755 bps
Other Operating Income	251	299	(16%)
Write-back/ (Impairment Loss) on Trade Receivables	31	(37)	186%
Selling & Marketing expenses	(1,913)	(988)	94%
Administrative expenses	(2,887)	(2,355)	23%
Operating Expenses	(4,800)	(3,342)	44%
Operating Expenses (% of Revenue)	25%	24%	146 bps
Operating Profit	3,096	1,479	109%
Operating Margin (% of Revenue)	16%	10%	571 bps
Finance Income	382	257	49%
Finance Cost	(34)	(8)	341%
Net Finance Income	348	249	40%
Profit Before Tax	3,444	1,727	99%
Profit before Tax Margin (% of Revenue)	18%	12%	577 bps
Income Tax Expense	(1,068)	(605)	77%
Profit After Tax	2,376	1,123	112%
Profit after Tax Margin (% of Revenue)	12%	8%	447 bps
Earnings Per Share (kobo)	292	151	93%

In million ₦, unless otherwise stated	Dec-22	Dec-21	YoY
Non-current Assets	2,140	1,599	34%
Current Assets	11,028	10,275	7%
Assets Held for Sale	238	242	(2%)
Total Assets	13,406	12,116	11%
Non-current Liabilities	337	174	94%
Current Liabilities	6,470	7,532	(14%)
Total Liabilities	6,807	7,706	(12%)
Equity	6,600	4,410	50%
Total Liabilities and Equity	13,406	12,116	11%

For more information, please contact:

Lolade Bashiru

Investor Relations

[e-mail]

About CAP Plc

Chemical and Allied Products Plc (CAP) is a leading paints and coatings company in Nigeria with globally recognised brands such as Dulux, Sandtex, Caplux and Hempel. CAP manufactures and sells decorative paints and industrial coatings. CAP is the sole technological licensee of Akzo Nobel Coatings International B.V. and is the Nigerian representative of Hempel Paints South Africa (Pty) Limited. CAP pioneered the colour centre concept in Nigeria in 2005, which resulted in the evolution of the Nigerian paint industry. CAP is a public company listed on The Nigerian Exchange ("NGX"). It is a subsidiary of UAC of Nigeria PLC which holds 57.85% of the company's shares. For more information visithttps://www.capplc.com/

CAP's Investors Portal

CAP has a dedicated investors' portal on its corporate website which can be accessed via this link:https://www.capplc.com/investor-relations/ . This Earnings Press Release should be read in conjunction with the Audited Financial Statements for the period ended 31 December, 2022 available on our website. For any investment related enquiry, please contact Lolade Bashiru, Investor Relations by electronic mail [e-mail].

Disclaimer

This announcement contains or will contain forward-looking statements which reflect management's expectations regarding the Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expects", "intend" "estimate", "project", "target", "risks", "goals" and similar terms and phrases have been used to identify the forward- looking statements. These statements reflect management's current beliefs and are based on information currently available to management. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking statements. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally. Chemical and Allied Products Plc cautions readers that several factors could cause actual results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully, and undue reliance should not be placed on the forward-looking statements. For additional information with respect to certain of these risks or factors, reference should be made to the Company's disclosure materials filed from time to time with Securities and Exchange Commission of Nigeria. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise.