#1Capital Market Conference Call: 2023 FY Performance February 2024 5.9% Alc./vol. NB DESPERADO GRIGINAL FLAVOURED WITH BEER TEQUILA DESP SESPERA ORIGINA#2DISCLAIMER This presentation may contain forward-looking statements on the financial position and results of the activities of Nigerian Breweries Plc. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements. Many of these risks and uncertainties relate to factors that are beyond Nigerian Breweries' 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. Nigerian Breweries does not undertake any obligation to publicly release any revision to any forward-looking statement to reflect events or circumstances thereafter. Market share estimates contained in this presentation are based on outside sources in combination with management estimates. NB 2#3Capital Market Conference Call: 2023 FY Performance 2023 Full Year Review Nigerian Breweries at a Glance Operating Environment Our Strategy to Win 2023 Full Year Financial Performance Review Financial Results Summary 2024 Outlook Fundamentals for transformational growth Q&A NB#42023 Full Year Review Hans Essaadi NB Managing Director#5Mall Nigerian Breweries at a Glance Gulde GOLDRING Beineke STAR LEGEN Gulder MORE #1 in Lager, #1 in Malt, #2 in Stout 12 Sales regions with National Coverage N599.5bn Net revenue N44.5bn Operating profit Market Capitalisation (Naira) № 370bn Figures as at December 2023 9 Breweries 1 Malting Plant N213.3bn Net assets 7.5x Net debt/EBITDA Market Capitalisation (US Dollar) $ 388mln 21 Depots 2,438 Employees ** Number of Shareholders Heineken N.V. Shareholding 56.7% 112,901 ה FF NB Breweries NB Malting Plants 5 NB#62023 External Environment | A tale of headwinds, a few tailwinds, and more headwinds Indefinite excise increase suspension Oil production hits 1.35m bpd, highest in 2023 % Dangote receives 1st batch of crude oil for local refining Q1 2023 Apr 2023 June 2023 July 2023 Aug 2023 Oct 2023 Nov 2023 Currency Note Scarcity ÅÅÅ % Triple beer excise rate announcement ☑ Fuel subsidy removal Election Tension ☑ Food Inflation @ -24% 品 Official devaluation of the Naira $ FX Crisis Zero allocation from the CBN $ JP Morgan reports lower FX reserves => Naira > 1000 vs USD (vs. 550 Jan '22) GSK announces planned exit from Nigeria را Inflation @ ~32% Dec 2023 ר + P&G announces planned exit of local production from Nigeria $ Continued FX deterioration - parallel >N1,200 vs USD NB#7Jan-23 Mar-23 461 755 Parallel FX Official FX Jun-23 Aug-23 Oct-23 756 Dec-23 Source: National Bureau of Statistics, Nigeria Data Portal 2023 Increases in input costs, driven by fuel hike and FX, impacting consumer disposable income at an accelerated rate 950 Sorgum Price Food Inflation 55,500 1.250 NAFEX vs Parallel rate for USD Food Inflation % & Sorghum per ton in Naira Average price of Fuel in Naira 48,191 47,000 756 35,087 676 34 608 32 31 33 649 601 26,510 27 23,324 Jan-23 Feb-23 May-23 Jul-23 Sep-23 Oct-23 Nov-24 Dec-23 Jan-23 Mar-23 May-23 192 Jun-23 192 Aug-23 Oct-23 515 Dec 23 Petrol Diesel 1.056 Inter-city Intra-city 1.005 Nov-22 637 3.848 Jan-23 May-23 Jun-23 Jul-23 Sep-23 Transportation costs (Naira) 6.207 5.886 5.580 5.018 1.117 1.048 903 Oct-23 Nov-23 Dec-23 7 NB 7.402#8NB Our strategy to win Lead and Accelerate Premium led by HeinekenⓇ, Tiger, and Legend Grow Value and Protect Volume in Mainstream Lager Grow value with our Premium Malt brands Unapologetically Expand Beyond Beer with Desperados and Zagg Leverage Route To Consumer whilst improving Customer Experience HEINEKEN EverGreen 2025#9Lead and Accelerate Premium led by Heineken®, Tiger, and Legend PRE KF Heineken Heineken NOW KE VORIG Heineken Heine ANA Chair Chairman OUT NOW One name UM LAGER ΟΙ AMSTERD ken AEA 1873 m times si Introducing Chairman Limited Edition Packaging Celebrating 150 years of good times REGID LEGEND END city Fr ewed sive Authe sambok LEGE EGEND EXTRA STOUT Brassed ENJOY RESPONSIBLY. NOT FOR SALE TO PERSONS UNDER THE AGE OF 18 Driving meaningfulness and exciting consumers through the Heineken @ 150 and Lagos Fashion week experiences ใช 150 YRS Heineken LAGOS FASHION WEEK 2023 Styled for 5 Good times OCTOBER 15 Federal Palace Hotel, Victoria Island 15 ke e H.K rman ny Hel KIN Mayo Chairn B GEND END Falon press LOR CON DGEND LEGEND EGEN 9#10Grow value and protect volume in Mainstream Lager leveraging our strong national and regional assets GOLDBERG OMOLÚÁBÍ Ẹ KÚ ISÉ ENJOY RESPONSIBLY. NOT FOR SALE TO PERSONS UNDER THE AGE OF 18. Nation Football Team Sponsorship GOLD GOLD GOLDBERG Life GG GOLDBERG Life BEYOND THE GAME DOERG 33 OMOLUABI ENJOY, YOU DESERVE IT OMOLUABI YOU ARE DOING WELL M BEYOND THE GAME 13 22 GOLDBERG L ND THE GAME GOLDBE STAR fe Hi Life Fest '23 HoLife FESTFURU UGO LOTA HiLife FESTTURU UGO LOTA BE THE NEXT KING OF HI-LIFE COME AUDITION 10AM OAKLAND HOTEL, ENUGU 05.05.2023 FOR ENJOY RESPONSIBLY. NOT FOR SALE TO PERSONS UNDER THE AGE OF 18 PROGRESS Life 18 EN BEYOND THE GAME PLAY FOR PROGRESS Jeric OFFICIAL BEER OF THE SUPER EAGLES THE TASTE OF PROGRESS NWA AFO, ENJOY MOLU ENT Unity tour OMO EN Unity tour OMOL ENT ! Unity tour Life Life ENJOY Life THE TASTE OF PROGRESS 13 5PPM SIERRA LEONE VS NIGERIA 18-06-2023 Life SINCE 1961 ONDE SELEC ECTIO 2923 GOLD AWARD ENJOY RESPONSIBLY. NOT FOR SALE TO PERSONS UNDER THE AGE OF 18 Life FOR PROGRESS ENJOY RESPONSIBLY. NOT FOR SALE TO PERSONS UNDER AGE OF 18 ENJOY RESPONSIBLY. NOT FOR SALE TO PERSONS UNDER AGE OF 18 Life Life#11Grow value with our Premium Malt brands driving cultural relevance by dialing up religious and lifestyle cues Iftar MALTINA Sho kindness ppines Show kindness, IN MALTI share happiness MACO DITION im Jan Kar MALTINA MALTINA MALTINA AFRICA MA IN ASS RS CHOICE ITH MULTICHO Ramadan Kareem MAFRICA AMSTEL JULTICHOICE MALTA NIGERIA Together, Happiness Happens MALTINA MALTINA ALTINA Share Happiness Creating a sense of community and belonging by providing consumers with opportunities to connect with others MALTINA Happiness is a Vibe Share Happiness Share Happiness Happiness is a vibe MAITINA MALTINA MA MALTINA LOVES ATITO MAL MA Driving high quality consumer experiences and partnerships through relevant sponsorships AMSTEL MALTA 1870 AMSTEL MALTA JAI#12Our flavoured beer brands continue to offer unique and engaging experiences that tap into new consumer interests and passions Pintaye e FOR THE UNUSUAL 餃 DESPERADES LANCE DSP DSP NG Dr ΦΥΣΙ 18+ STAR Rulla Radle D#13NO SHAKING We continue to target underserved consumer groups with our beyond beer portfolio A ACE WCL PER BAG EMOVE NO SHAKIN MUILA RINDING CONTAINS 14 HERBS TS & SPICES RIDE GBERA KING! T CoLife GOLMERG Life BEYOND THE GAME CRO A BERA GBE BODY EH BAR RE LAG NO SMAKING RIDE ON GUE BODY TH ©©© Driving Zagg brand awareness while energizing consumers through meaningful associations as the Official Energy Drink of the Super Eagles and as the Headline Sponsor of the AMVCA KEEP MEUVE-ING 22#14We expanded our portfolio with value for money propositions to adjust to current economic realities and pressure on disposable income Hi-Malt Vitality Energy Refreshment CARIC Hi-Malt Vitality Energy Refreshment Life EMIUM L Life 61CL FOR PROGRESS Affordable Malt Proposition 45cl RGB to drive affordability MORE UTYLACER BEEK MORE QUALITY LAGER BEER OUR BEER, OUR PRIDE BATTLED ITS RATES ON W OMER CARE 07008G27 UNEAR Relaunch of 100% Sorghum beer NB#15We continue to engage, equip and motivate our employees All-Inclusive Leadership E-LEARNING CLIMATE YOUR FEEDBACK, OUR FIL COMPLETION RATE PER FUNCTION OpCo completion rate 100% DEI Listening & Diologue Sessions: What is GENDER Equity in NB? How is GENERATION Diversity in NB? What does ETHNIC Inclusion mean in NB? How is RELIGION Diversity in NB? Collective Agreement SUPPLY CHAIN 100% CORPORATE AFFAIRS SALES 100% MARKETING 100% 100% BABY BOOMERS D&T LEGAL AGED 52-70 GENERATIONX AGED 37-51 GENERATIONY AGED 22-36 GENERATIONZ AGED 7-21 HR FINANCE 100% 100% 100% 100% We focused on fostering a conducive, safe and caring work culture/environment DIVERSITY, EQUITY & INCLUSION Divendre Rising Stars Annual Conference Theme: Unlocking the full potential of our rising stars Tuesday | 28 November 2023 | 11:00AM-12:30pm NB WEBINARS HR REWARDS ROADSHOW Join us as we discuss and answer your questions on NB Compensation & Benefits Why a Rewards Show? Increase awareness about rewards offerings in NB Educate and inform the audience Engage and exchange feedback 4 January 2024 10:00am & 12 Noon Eric Olaleye, Head, Rewards NB Facilitator 2023 SEE HER EMPOWERED (SHE) CONFERENCE Theme: Balancing Professional & Personal in today's world WED 20 02:30 pm- 04:00 pm MS TEAMS WINB We strived to alleviate the economic hardship on our employees occasioned by inflation We ensured our Talent & Female retention despite the rising "Japa❞ syndrome and we focused on developing the skills and competencies of our workforce to stay resilient in a challenging market NB WEBINARS PAY IT FORWARD NB WEBINARS The Value Mindset 25 May, 2023 2pm - 3pm Title PERSONAL SECURITY AWARENESS DURING THE HOLIDAYS 伊 Lola Adeyemo Revenue & Margin Growth Analyst Omotayo Ajibade Groath A Efe Orikpete Fall Analyst NB Nigerian Breweries Pic Ogechi Amonu P&L Anshast Thursday 21st December 2023. 2.00pm to 3.30pm Supported by Prosper Uzozie Steve Akhagbosu Facilitator NB#16We continue to drive our omni channel coverage and improve transaction capture 509k Outlets Covered Enablers B2B Platform 137K (*27%) NEVER RUN Quick Drinks OUT OF STOCK IN YOUR OUTLET WITH sales Front Line Sales 201K (*40%) Download the App on GETTON Google Play MyJara Download on the App Store Customer Service 171K (*34%) Radler BUY 1 CRATE/TRAY OF STAR RADLER RED FRUIT GET 30 MyJara Points! from 8th August to 5th September 2022 Raller / Telesales * % of Covered Outlet Universe STAR MyJara Quick Drinks Net Promoter Score -10 0 10 -20 20 -30 30 -40 40 -50 50 -60 60 -70 70 -80 80 -90 90 -100 85 100 NPS NPS = % of Promoters - Detractors NPS 85 (+6 vs LY) = # NPS % of Revenue = 58% NB#17• • . Sustainability is at the Heart of our Business NET ZERO-CRCULARITY-HEALTHY WATERSHEDS NVIRONMENTAL HEINEKEN BREW A BETTER WORLD SOCIAL DIVERSITY-FAIR & SAFE COMMUNITY IMPACT RAISE THE BAR 2030 ALWAYS A CHOICE ADDRESS HARMFUL USE MODERATION RESPONS Environmental NB DAYSTAR POWER 1NERGY SOLUTIONS Social INDUSTRIAL TRAINING FUND ABEOKUTA AREA OFFICE HAM tlj M Responsible MALTIMA tlj MISSION NINE-ZERO tli MAU MAL We continue to raise the bar on our Brew a Better World agenda with focus on our three pillars: Raising the bar on climate action Accelerating our social sustainability agenda through community impact Addressing the harmful use of alcohol >N3.6 billion Investment in Decarbonisation of our Footprints 237,289 Total number of Tress Planted at Olokomeji Forest Reserve to Restore Healthy Watersheds 9/9 Breweries fully equipped with functional waste-water treatment plant N100million Invested to empower 1000 youths and vulnerable women in 2023 Editions of Maltina Teacher of the Year 100% Fair Living and Working Standards for Employees and Non- Employees N58million Spent on addressing harmful use of alcohol by commercial drivers and pregnant women 10% Media Spend invested in Responsible Consumption Campaigns +50,000 Pregnant women reached via campaign to discourage alcohol consumption by pregnant in Abia, Rivers and Oyo States NB 17#18Modernizing our footprint - Breweries upgrade to be finalized in 2024 • Ama expansion is operational and online. Kudenda expansion operational in 2024 Main objectives: - - Replacement of older equipment Key enabler to drive our Premium agenda Increase capacity ahead of future market growth Improving economic activities to the states (Enugu and Kaduna) Expansion work is in full compliance with international safety standards to protect our environment and our people 18#192023 Full Year Financial Performance Review Ben Wessels Boer NB Finance Director#20Operating Profit strong taking into account significant headwinds. Negative net profit driven by FX debt revaluation 2022 2023 2022 2023 Revenue Growth +9% Revenue -11% Gross and Operating Profit almost Flat Negative NP due to FX loss (0% -15% Gross Profit Operating Profit Revenue by quarter strongly influenced by significant headwinds +13% +4% Q1 Q2 Q3 -860% Net Profit +26% 00 Q4 NB 20 20#21Revenue growth impacted by lower volume does not fully compensate higher input costs and redundancy one-off Operating profit bridge (N billion) -15.3% 49.0 39.3 Summary of Profit or Loss (N'Billions) 2023 2022 Change % Revenue 599.5 550.5 9 Cost of Sales (387.0) (337.3) (15) 5.7 4.3 Gross Profit 212.5 213.2 0 8.6 Operating Profit 44.5 10.6 52.6 44.5 Net loss on foreign exchange transactions 52.6 (15) (153.3) (26.3) (482) Net financing expense (35.9) (8.1) (342) Profit Before Tax (144.7) 18.1 (900) Taxation 39.5 (4.2) 1049 Results after Tax (105.2) 13.9 (855) EBITDA 92.0 91.6 0 Operating Profit Margin % 7.4% 9.5% (212) bps Operating profit 2022 Increase in Increase in net revenue raw materials and consumables promotions Decrease in advert. and sales Impact of Increase in Others net redundancy transportation (e.g. costs Depreciation, E&W) Operating profit 2023 NB#22Jan-23 Mar-23 Yearly Central Bank FX Sales (USD bn) Nigerian Breweries FX debt and exposure to devaluation losses are driven by FX shortages in recent years 60 42 39 34 FX shortage in the 40 29 22 22 17 17 20 official window has resulted in high FX debt for Nigerian companies Jun-23 2015 2016 2017 2018 2019 2020 2021 2022 FX Rate Development NB FX Debt and WC Payables Development (EURm) 221 191 170 166 114 1.250 30 88 26 81 Strong devaluation 755 950 within 1 year coupled with high 756 2018 2019 2020 2021 FX debt has 461 resulted in heavy FX losses for Nigerian FX Purchases FX Needs FX Debt Companies Aug-23 Oct-23 Parallel Actual Official FX Actual Dec-23 88 168 119 211 187 204 191 180 2022 2023 NB 22#23Impact of Naira devaluation pressuring Net Profit 13.9 8.1 27.9 Net profit bridge (№ billion) Net profit 2022 Decrease in Operating Profit Increase in Interest Costs -859.6% 127.0 43.1 0.2 Impacted of FX losses (revaluation of FX debt offset) Decrease in Income tax expense -105.8 Other income Net profit 2023 NB#24Financial Position Summary of Financial Position (N'Billions) Dec-23 Dec-22 Change in % Property, Plant & Equipment 440.8 357.9 23 Inventories 121.9 83.3 46 Trade and Other Receivables 51.2 44.9 14 Cash Other Assets 39.5 22.2 78 144.0 113.0 27 TOTAL ASSETS 797.3 621.3 28 Non Current Liabilities 11.8 29.8 (60) Borrowings 341.6 122.3 179 Trade and Other Payables 354.9 264.6 34 Other Liabilities 23.9 23.8 0 Equity 65.2 180.9 (64) TOTAL EQUITY AND LIABILITIES 797.3 621.3 28 PPE Turnover ratio 1.4 1.5 Working Capital Turnover ratio -1.7 -2.2 NB#252023 Financial Summary • Lower disposable income and high input costs as a result of inflation and naira devaluation continue to put volumes and margins under pressure. • Despite these significant headwinds we were able to grow our revenue by 9% compared to the previous year aided by positive price mix. Operating Profit performance was relative strong despite higher input- and one-off reorganisation cost due to aggressive cost savings and other efficiency measures. • Net Profit was negative mostly due to the devaluation of the naira which resulted in N153 billion loss on foreign exchange transactions. • Although recent policy reforms have severe impact on businesses and consumers, we are hopeful that they will ultimately, be beneficial to the long-term growth prospects of the country and the Company. • The Nigerian business environment remains turbulent on the short term. However, long-term market fundamentals of Nigeria are still positive and we continue to invest in Nigeria. We have the history, footprint, brand portfolio, people and necessary capacity to capture the expected long term growth in Nigeria. NB 25#262024 Outlook Hans Essaadi Managing Director NB#272024: Fundamentals for transformational growth Winning in the market leveraging our strong portfolio, exciting innovations & route to consumer Continued strong cost management and further optimalization of our operational footprint Accelerate our Beyond Beer strategy with Distell Fostering Employee Connection & Engagement HEINEKEN EverGreen 2025#28Q&A Sade Morgan Corporate Affairs Director NB#29PURE HEINEKEN ORIGINAL eineken MALT LAGE 150 YRS Heineken Thank you!