INTERNATIONAL BREWERIES : AUDITED FINANCIAL STATEMENT FOR 2021

International Breweries Plc Annual report and financial statements for the year ended 31 December 2021

Contents

Corporate information 2

Report of the directors 3-13

Certification of the audited financial statements 14

Statement of directors' responsibilities 15

Audit committee report 16

Independent auditors' report 17-20

Statement of profit or loss 21

Statement of other comprehensive income 22

Statement of financial position 23

Statement of changes in equity 24

Statement of cash flows 25

Notes to the financial statements 26-51

Other national disclosures:

Statement of value added 52

Five-year financial summary 53

Corporate information

Company registration number RC 9632

Chairman

HRM Nnaemeka Alfred Achebe, CFR,MNI

Directors

Mr. Hugo, Dias Rocha Mr. Bruno Zambrano Mr. Sunday Omole

Mr. Olugbenga Awomolo Mrs. Tolulope Adedeji Mr. Andrew Scott Murray HRM Peter Anugwu

Mr. Michael Ajukwu Ms. Abiye Tobin-West Mr. Richard Rivett-Carnac Ms. Olutoyin Odulate

Mr. Andrew Whiting

Auditors PricewaterhouseCoopers Landmark Towers

5B, Water Corporation Road Victoria Island,

Lagos, Nigeria.

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

Company secretary Mr. Muyiwa Ayojimi Plot 5A Abuja Street, Banana Island, Ikoyi, Lagos.

Bankers CitiBank Limited

United Bank for Africa Plc. First Bank of Nigeria Limited Guaranty Trust Bank Plc. Zenith Bank Plc.

Stanbic IBTC Plc.

Standard Chartered Bank Limited Rand Merchant Bank Limited Access Bank Plc.

Union Bank of Nigeria Plc. FSDH Merchant Bank LtdNon-executive DirectorBrazilian Colombian Nigerian Nigerian Nigerian American Nigerian Nigerian Nigerian British Nigerian BritishExecutive Director Executive Director Non-executive Director Non-executive Director Executive Director Executive Director Non-executive Director Non-executive Director Non-executive Director Executive Director Non-executive Director Non-executive Director

Report of the directors

The directors submit their report together with the audited financial statements for the year ended 31 December 2021, 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, 1994. The Company's head office is situated at Plot 5A Abuja Street, Banana Island, Ikoyi Lagos, Nigeria.

2 Legal form

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, 1994. The Company is a part of the AB InBev Group (The largest brewer 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

Theresults for the year ended 31 December 2021 are set out on page 21. The loss for the year has been transferred to retained earnings. The summarised results are presented below:

5

2021	2020
N'000	N'000
Revenue	182,298,045	136,790,573
Loss before tax	(19,836,278)	(28,590,319)
Tax credit	2,179,768	12,507,983
(17,656,510)	(16,082,336)
Total comprehensive loss for the year	(16,429,956)	(18,505,610)
Dividend declaration

The Board maintains a dividend policy which guides its decision on dividend declaration. The Directors therefore resolved not to recommend the payment of a dividend for the year ended 31 December, 2021. The board views this decision as appropriate in the short term and in the future interest of the Company owing to the current gearing ratio.

6 Directors

The names of the directors as at year end and date of this report are as set out in the corporate information page. There were no changes to the board during the year under review.

Report of the directors

Details of theinterest in theshares 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 CAMA as well as the Listing Rules of the Nigerian Stock Exchange are set out below. Directors whose names did not appear here do not have any direct/indirect shareholding in the Company.

December 2021	December 2020
Number	Number
Direct holding HRM Igwe Nnaemeka Alfred Ugochukwu Achebe Mr. Sunday Akintoye Omole Michael Onochie Ajukwu Peter Nwokiki Anugwu Tolulope Adedeji Indirect holding Mr.Olugbenga Awomolo (Through Newco Investment Company Limited) Sunday Akintoye Omole (Through Cardinal Investment Nigeria Limited)	40,732,127 377,022 62,000,000 5,000,000 108,900 334,075,394 968,087	40,732,127 377,022 62,000,000 5,000,000 108,900 334,075,394 968,087

7

All directors with interest in contract have notified the Company for the purpose of Section 277 of the Companies and Allied Matters Act, Cap.20 LFN 2020 of their direct or indirect interest in contracts or proposed contract during the year.

The directors do not have any interest required to be disclosed in the year under review as required under section 306 of the Companies and Allied Matters Act, 2020.

8 Property, plant and equipment

Information relating to change in property, plant and equipment is given in note 13 to these financial statements. A total of N27.9 billion (2020:N17.7 billion) was expended on property, plant and equipment during the year.

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 new National Code on Corporate Governance and has began the application of the 28 principles as enshrined in the Code. Theconviction is that corporate governance practices should be accorded a more practical approach in enhancing Company ideals and management performance. In fulfilment of the SEC Code and the National Code, the Company has appointed an Independent non-executive director and the board will comply with the new CAMA provision on three INEDs in due course.

(i) Leadership and effectiveness

Board of directors: composition, independence and renewal

The board was composed of as at the date of this report, the chairman who is a non-executive director, eight non-executive directors and three executive directors.

The board considers its directors as at year end and as at the time of this report as independent for the purpose of their contributions of invaluable integrity, corporate wisdom and experience towards the board anddeliberations and decisions. The board is therefore satisfied with the performance and continued independence of judgment of each of the directors.