#1Flour Mills of Nigeria Plc H124 Results Feeding the Nation...#2Disclaimer FMN Food and Agro-Allied Group This presentation contains forward-looking statements with regards to the financial position and results of the activities of Flour Mills of Nigeria Plc ("FMN Plc"). These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond FMN Plc's ability to control or estimate precisely, such as future market and economic conditions, the behaviour of other market participants, changes in consumer preferences, costs of raw materials, interest rate and foreign exchange fluctuations, change in tax rates, changes in law, changes in pension costs, the actions of government regulators and weather conditions. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. FMN Plc does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials. Market share estimates contained in this presentation are based on outside sources in combination with management estimates. FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24 2#301. Operating Context 02. Financials Review 04. New Products FMN Food and Agro-Allied Group 03. Business Segment & Initiatives Spotlight Review 05. Going Forward#4CONTEXT OPERATING Golden Bites CHIN CHIN#5Key Messages Q2'24 Execution of our resilient strategy continues to yield growth in revenue, profits and cash results in a challenging operating environment FMN Food and Agro-Allied Group Q2'24 Revenue Q2'24 Gross Profit 1 Maintained strong revenue growth across major segments 2 Persistent strong Gross Profit and Operating Profit Growth #508.3bn #55.2bn +33% (1 +53% (T 3 Q2'24 PBT Q2'24 Cash 5 FMN is back to profitability with a solid profit in Q2 despite a volatile environment, proving the strength of the business model Sustained strong cash generation Credit ratings of "A-" and "A" have been reaffirmed by rating agencies Agusto and DataPro respectively #1.2bn +14% (↑ #214.2bn +262% (1 6 FMN is getting ready for the future the setting up of a separate Power Company and other optimizations in the pipeline FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24 LO 5#6Macroeconomic Overview Economy undergoing transition to yield long-term benefits with FMN delivering in this environment FMN Food and Agro-Allied Group COST PRESSURES • Forex market liberalization • Inflationary pressures • Positive monetary policies from new CBN management MARKET NETWORKS • Global uncertainties • Ongoing plans by CBN to resolve FX liquidity issues • Supply chain strain easing globally • CONSUMER DEMAND Declining discretionary income Increasing petrol prices • Increasing energy costs Headline Inflation rose from 21.8% in Jan'23 to 25.8% in Sep'23. NGN/USD in the I&E window moved from #455/$1 in Jan'23, #460/$1 early Jun'23 to #762/$1 in Sep'23 FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24#7FMN Sustained Operational Efficiency in the Challenging Environment FMN Food and Agro-Allied Group • • • - Focus on 5 value chains Grains, Sweeteners, Oils & Fats, Feeds & Proteins and Starches Continued local content, backward integration investments and strategic partnership with FMAN and other partners plus programs Focus on retail customers and regional strategies with accelerated expansion in the B2C segments and distribution centres Continued cost optimization Strategic pricing adjustments reflect macros and market realities to BUSINESS MODEL • • . • Continuous mix optimization and cost saving initiatives Improved SKUs options in key categories Increased cash collections Gradual settlement of CBN backlogs on forward contracts FX payables covered with related stocks and FX on hand . No foreign denominated debt . • currency • Advancement of our sustainability commitments to education, skills development, infrastructural support, health and welfare Local content focus and progress in further backward integration initiatives in Sugar production Declared N8.2bn in dividends last year and confirmed a N9.2bn, 12% increase in dividend for FY'23 Continued investments in expanding existing production lines especially in the B2C category. FINANCIAL ६०३ RESILIENCE FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24 VALUE CREATION#8NEW Golden Penny Pure Vegetable Oil FINANCIALS REVIEW 02#9Financial Performance Strong revenue expansion with solid Gross and Operating Profit growth and Q2 profit ahead of LY CONSOLIDATED STATEMENT OF PROFIT & LOSS (N'BN) FMN Food and Agro-Allied Group H1'24 H1'23 %Chg Q2'24 Q2'23 %Chg Revenue Cost of sales 964.6 720.6 (859.2) (651.8) 34 508.3 381.0 32 (453.1) (345.4) 33 31 Gross profit Operating expenses 105.5 68.8 (37.0) (26.0) 53 55.2 35.5 55 Quality and flavor 42 (20.0) (11.1) 79 in every mouthful Net operating gain 7.4 7.3 1 11.0 5.3 107 Operating profit before FX adjustment 75.9 50.1 52 46.3 29.7 56 FX loss (51.2) (19.7) 160 (28.7) (14.7) 96 Operating profit after FX adjustment 24.7 30.3 (19) 17.6 15.0 17 Investment income Finance costs 1.8 (34.6) (22.3) 55 0.4 368 1.6 0.2 766 (18.0) (14.2) 27 Profit before taxation (8.1) 8.4 (197) 1.2 1.1 14 Good Meet Pepper- Taxation (0.4) (2.7) (86) (0.4) (0.9) (55) Golden Instant N Golde Instan Jollof Ch Golde Instan Jollof C Profit for the year (8.5) 5.7 (249) 0.8 0.2 300 70g EPS 243.0 197.0 23 6.0 60.0 (90) FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24 Golden Penny Instant Noodles Chicken Flavour 1000#10Q2'24 Financial Highlights Double digit growth in Revenue & Gross Profit Revenue (N'bn) 381.0 33% 508.3 Q2'23 Q2'24 Operating Profit Gross Profit (N'bn) 55.2 35.5 55% Operating Profit before FX adjustment (N'bn) 29.7 56% 46.3 Q2'23 Q2'24 Q2'23 Q2'24 after FX adjustment (N'bn) Profit Before Tax (N'bn) Profit after Tax (N'bn) 17.6 0.8 1.2 1.1 14% 300% 15.0 17% Q2'23 Q2'24 Q2'23 Q2'24 FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24 0.2 Q2'23 Q2'24 FMN Food and Agro-Allied Group#11Source of capital use of capital Capital Structure 4% Improvement in Net Debt driven by strong cash balance FMN Food and Agro-Allied Group STATEMENT OF FINANCIAL POSITION H1'24 H1'23 %Chg Net Debt (bn) 275.4 284.8 (4%) 264.9 Debt Mix PPE 340.2 336.8 1 59% 55% 50% 72% Right of Use Assets 16.3 15.7 4 127.1 Working capital 190.2 189.7 0 41% 45% 50% 28% Others Cash 30.7 12.5 145 FY'22 H1'23 FY'23 H1'24 FY'22 H1'23 FY'23 H1'24 214.2 59.2 262 Short-term debt Long-term debt 791.5 613.8 29 Borrowings 479.0 334.7 43 • Lease liabilities 30.4 20.6 47 Others 65.4 62.5 5 Non-controlling interest 17.4 6.4 173 Equity & Reserves 199.3 189.7 5 Debt funding optimization using bonds and CPs to replace Bank Overdrafts. Issued N85bn commercial paper at an average rate of 12.6% to further reduce the financing costs for the balance of the year, and beyond Strong balance sheet, which ensures flexibility in fund raising, as required, at competitive interest rates Total 791.5 613.8 29 FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24#12Cash Position 262% improvement in Bank deposits & Cash CONSOLIDATED STATEMENT OF CASH FLOW (N'BN) LOL GOLDEN FOODS WOME of BRAND PASTA GOLDEN PENNY PASTA MACARONI ུ$ H1'24 H1'23 %Chg Q2'24 Q2'23 %Chg Profit before changes in Working capital 42.1 45.8 (8) 26.3 24.0 Net changes in working capital 28.3 (38.6) 173 (13.5) 5.6 10 (340) Other items (14.8) (13.1) (13) (14.8) (13.1) 13 Net Cash from Operating activities 55.6 (6.0) 1,033 (2.0) 16.6 (112) Cash Capex (10.0) (17.0) 41 (7.0) (13.7) 49 Additions to PPE - CWIP (8.3) (10.8) 23 0.0 0.7 (94) Acquisition of Honeywell (14.4) 100 - (0.3) (100) Other Investing Activities 0.9 0.0 2,784 1.2 2.7 (57) Net Cash from Investing Activities (17.4) (42.2) 59 (5.8) (10.6) 45 Net Proceeds from borrowings 133.3 89.7 49 106.7 26.9 297 Other financing activities (34.6) (22.3) (55) (18.0) (14.2) 27 Net Cash from Financing Activities 98.7 67.4 46 88.8 12.7 600 Net cash flow for the period 136.8 19.3 611 81.0 18.7 334 Cash at beginning of the period 64.9 21.7 199 120.8 22.3 441 Bank Overdrafts 12.4 18.3 (32) 12.4 18.3 (32) Bank deposits balances and cash 214.2 59.2 262 214.2 59.2 262 FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24 FMN Food and Agro-Allied Group #MoreReasonToLove#13Net Debt FY'23 Net Debt Evolution 284.8 (152.0) Driven by deposit for LC & tax payment offset by customer deposits Driven by Net deposit for FX New bid & Deliveries 10.0 10.0 9.0 25.8 1.0 Payables Driven by new Shipments, FX impact, local suppliers and CBN delayed deliveries Other working capital EBITDA Receivables Cash Capex CBN Prepayment FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24 Tax 17.6 30.0 264.9 28.7 Driven by additional stocks in Sugar, Honeywell and Agro- Allied off-set by rebalancing in Bagco & Food Inventory Interest Net Debt Q2'24 FMN Food and Agro-Allied Group#14GOLDEN PENNY PASTA BUSINESS СОГОЕЙ БЕНИК SEGMENT REVIEW 03#15Segment Performance Enhanced revenue performance across most segments. Well diversified business portfolio SEGMENT REVENUE (N'bn) FMN Food and Agro-Allied Group SEGMENT PROFIT BEFORE TAX (N'bn) H1'24 H1'23 % Chg Q2'24 Q2'23 % Chg H1'24 H1'23 % Chg Q2'24 Q2'23 % Chg Food Agro-Allied 653.5 445.7 47 349.8 232.5 50 Food (13.8) 0.1 (12,368) (2.4) (4.5) (47) 143.2 153.9 (7) 63.4 88.2 (28) Agro-Allied 7.8 7.5 4 3.2 5.3 (39) Sugar 149.2 104.7 43 82.7 49.6 67 Sugar 0.8 1.9 (58) 1.1 0.2 368 Support 18.7 16.3 15 12.4 10.6 17 Support (2.9) (1.1) (153) (0.7) 0.0 (3,467) Total 964.6 720.6 34 508.3 381.0 33 Total (8.1) 8.4 (197) 1.2 1.1 14 Segment Revenue Contribution 68% Food 15% Agro 15% Sugar 2% Support Segment Profit Before Tax Contribution 170.0% FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24 -95.7% -9.8% 35.6%#16Food Segment 16% B2C volume growth affirming B2C expansion driven by Pasta, Noodles, Semovita and Goldenvita offerings" Volume contribution per category FMN Food and Agro-Allied Group FOOD SEGMENT H1'24 H1'23 % Chg Q2'24 Q2'23 % Chg Revenue 653.5 445.7 47 349.8 232.5 50 Profit before tax (13.8) 0.1 (12,368) (2.4) (4.5) (47) • • The Food segment recorded 7% volume and 47% Revenue increase in H1'24 despite significant increases in wheat costs (caused by both international wheat prices and Naira devaluation) due to the following; ܀ Modest price increase. * Optimization of material cost through grist optimization in key categories (Premium Flour, Semovita and Pasta) while still maintaining quality. ܀ SKU expansion and flavour additions within existing key brands including Pasta 400g, Noodle Flavor additions (Jollof Hot Hot) and launch of Golden Bites Chin Chin and Tomato Jos paste (commenced a distribution partnership). Enhanced redistribution investments to drive retail outlets/point of sale penetration. B2C volumes up by 16% vs LY. Manufacturing footprint optimization of our plants inclusive of the Honeywell plants to improve operational efficiency while reduce costs. PBT was impacted by FX losses of N36bn due to exchange rate volatility with an improvement in Q2 and overall situation stabilizing. FMN Food and Agro-Allied Group FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24 59% Flour 24% Pasta B2C-41% 9% Ball foods B2B-59% 5% Others 3% Noodles Egusi's Paddy My soup's first choice. GOLDEN PENNY SEMOVITA Premier Quality Sembl#17Agro-Allied Segment Maintained profitability driven by resilience in the Feeds and Oil and Fats business AGRO ALLIED SEGMENT 4% H1'24 H1'23 % Chg Q2'24 Q2'23 % Chg H1'24 PFM Volume Growth Revenue 143.2 153.9 (7) 63.4 88.2 (28) Profit before tax 7.8 7.5 4 3.2 5.3 (39) Agro-Allied 5-year PBT Trend 7.5 7.5 6.3 7.8 20% H1'24 PFM Revenue Growth FMN Food and Agro-Allied Group The Fertilizer business witnessed a 23% and 17% drop in volume and revenue due to raw material scarcity. A strategic partner has been engaged in raw material swap deals with the business to ensure raw material supply. Animal feeds business achieved 20% revenue growth driven by 4% growth in volume, better distributor partnerships and farmer training initiatives. Oil and fats business recorded 206% increase in export operations. The business also engaged in a new toll milling contract in Northern Nigeria and launched a new product the Choco spread targeted at the B2C market segment and to increase its market share. 0.0 H1'20 H1'21 H1'22 H1'23 H1'24 206% H1'24 PEOPL Export Revenue Growth FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24 Sizzle with the Goodness of Pure Soya Oil! Golden penny Soya CON Golden Penny Pure Soya Oil#18Sugar Segment Achieved 43% growth in segment revenue with PBT impacted by 3.9bn in FX loss due to FX rate volatility SUGAR SEGMENT 40% H1'24 H1'23 % Chg Q2'24 Q2'23 % Chg H1'24 revenue Revenue 149.2 104.7 43 82.7 49.6 67 Profit before tax 0.8 1.9 (58) 1.1 0.2 368 growth in GSC (apapa - White sugar) FMN Food and Agro-Allied Group 40% revenue growth in the sugar value chain driven by modest price increases and continuous customer engagements. GSC continued its investment in backward integration plans in the sugar value chain to grow its sugar cane production capacity. NEW OLDEN PENN GOLDEN PENN FOODS The HOME GOOD FOOD FOODS SUNTI PREMIUM BROWN GRANULATED SUGAR E SUNTI REMIUM BROWN RANULATED SUGAR A 100% 100% . Demand in Northern Nigeria as well as with other customers for Brown sugar continues to increase.. Consequently, Sunti achieved a 141% improvement in revenue driven by volume and modest pricing increases. 141% H124 Sunti(Brown sugar) Revenue produced PB was impacted by the FX volatility with the profitability in Q2 stabilizing and foreseen to further improve.. FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24#19Support Segment 15% segment revenue driven by increased volumes while PBT decline due to FX rate volatility in ABTL business SUPPORT SEGMENT H1'24 H1'23 % Chg Q2'24 Q2'23 % Chg 18.7 16.3 15 12.4 10.6 17 Profit before tax (2.9) (1.1) (153) (0.7) 0.0 (3,467) Revenue BAGCO Uncompromised Quality in various forms and sizes 18% H1'24 BAGCO Revenue Growth 53% H1'24 GTC Revenue Growth FMN Food and Agro-Allied Group 18% Revenue growth in Bagco; Our bagging business was partly driven by a 5% volume increase. The business engaged in sales of some new bags which include multipurpose bags, food bags, cement bags and rice bags. The port facilities business achieved 54% revenue growth led by marginal volume increase and tariff increase. Partnerships with other firms are being explored to increase cargo volumes by the business GTC (Golden transport company), our logistics business revenues witnessed improvement driven by improved asset availability and utilization and price increases as required. GOLDEN PENNY SUPREME FEEDS ERTILIZE NPK ND FERTILIZE SUPER SACK Hermetic Storage Bag REWEST SHOLE GAS ALAMATION T CYT BAGCO SAHARAN SACK 54% H1’24 ABTL Revenue Growth GOLDEN FERT AVAILABLE AT: NONDAY MARKET MAIDUGURI FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24#20X sex GOLDEN PENNY Chosk SPREAD NEW PRODUCTS & INITIATIVES SPOTLIGHT 04#21H1'24 Product Launches Launched Golden Penny Choco, Golden Bites Chin Chin and relaunched our Zero-fly bags in H1'24 OLDEN PENN IT'S TIME TO Choch GOLDEN A PENNY Chock SP GOLDEN PENNY Chocle SPREAD 5000 NEW CINNAMON FLAVORED CHIN CHIN Golden Bites CHIN CHIN OH SO CRUNCHY! SWEET FLAVOR MM BAGCO Bagco Zerofly Your shield against crop pests. SUPER SACK Hermetic Storage Bag BAGCO ZeroFly Ping post harvest stages FMN Food and Agro-Allied Group NEW Golden Penny Choco is our entry into another exciting adjacent segment with a high quality product that is fully sourced locally. It comes in three SKUs: • • • GP Choco Spread 15g x 200 GP Choco Spread 585g x 12 GP Choco Spread 325g x 24 Relaunch of Golden Bites Chin Chin • • Cinnamon flavoured Product targeted at the B2C market segment ZeroFlyⓇ Storage Bag was relaunched. An insecticide-incorporated woven polypropylene bag developed for post-harvest storage of commodities. viability protection. . Provides grain protection, seed • It is safe and easy to use. FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24#22• New Initiatives: Power Company Set Up FMN Food and Agro-Allied Group FMN is leveraging the Federal Government move to liberalize power generation and distribution to include private companies. Over the years, FMN has invested in various power assets that we are now further optimizing GPPL will manage all Power Assets centrally and will optimize costs and utilization. Benefits Expected from Power Company Set Up Reliable and Stable Power Supply. Long run double digit cost savings foreseen from reduction in transmission and distribution costs associated with purchasing electricity. Optimized management of and funding for the Power Company. Enhanced resilience and disaster recovery from a backup power source that reduces the risk of prolonged disruptions to operations Alternative source of revenue as excess energy generated could be distributed and sold to third parties in the long run. FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24#23FOODS Golden Penny Garri try. Crunchy, White Cassava Grits. DEN PENN OODS 3. M.AS GOLDEN PENNY SEMOVITA Premium Quality Semolina BUSINESS OUTLOOK GOLDEN PENNY GOLDEN PENNY MASAVITA 100% White Maize GOLDEN PENNY GODS GOLDEN PENNY GOLDENVITA Whole Wheat Meal 3X MORE FIBRE than regular Semolino 1kg 05#24Outlook • • • . . • FMN End Agro-Allied Group The business model has been stress tested over the years and the Group has shown its agility and ability to deliver solid profits in challenging conditions We will continue to fill the needs of the consumers with route to market and new product initiatives across the group and drive the B2C/consumer segments across the Group. Increase operational efficiency with accelerated plans for cost optimizations across the Group to ensure competitive product offerings and profitability in the new operating environment. Continuous focus on managing the balance sheet for efficiency, to ensure optimal allocation of capital and reduced funding costs. We are continuously assessing the model and anticipate further structural optimizations, as per what was seen with the Power Company. We are comfortable that the interest costs will also reduce as the backlogs are being settled and we have restructured the borrowing profile with N85bn of CPs being raised at an average rate of 12.6% replacing higher priced overdrafts. FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION H1'24#25Q & A Golden Penny Margarine Original DELICIOUSHUP Golden Penny Manerautne