#1EMONIC OL FMN Food and Agro-Allied Group Feeding the Nation, Everyday... COMFANCY Flour Mills of Nigeria Plc | Investor Presentation Full Year 2021#2Disclaimer FMN Food and Agro-Allied Group This presentation contains forward-looking statements with regard 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 FULL YEAR 2021 2#3Agenda Overview of FY21 01 FY21 Financial Review 02 Business Segment Review 03 Internal Initiatives 04 Business Outlook 05 FMN Food and Agro-Allied Group 3 FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021#401 Overview of FY21 yay! GOLDEN PENNY FOODS The HOME of GOOD FOOD GOLDEN PENNY PRIME FLOUR 50kg Manufactured by: fortin FLOUR MILLS OF NIGERIA PLO 2 Old Dock Rood, Apopo, Logos Nofdoc Reg. No: 01-0292 4#5FMN Key Messages • • • • • Food and Agro-Allied Group Flour Mills of Nigeria Plc continues its strong and resilient performance in a challenging and volatile environment with accelerated Q4 growth vs last year (Q4'21 vs Q4'20: Revenue +44%, EBT +161% and PAT +215%) The Group delivers impressive FY topline growth across all business segments with an average revenue increase of 34%, led by growth in Agro-allied combined with investments in route-to-market and accelerated expansion in the B2C segments FY and Q4'21 profit after tax up by 126% and 215% respectively Strong organic growth seen with sustained progress in product innovations and transformation in exciting markets as well as operational efficiencies Expansion of the backward integration program across all value chains Successfully issued N30bn corporate bond with tenor of 5 and 7 years at 5.50% and 6.25% respectively to replace expensive short-term facilities FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 5#6FMN FY2021 at a Glance Food and Agro-Allied Group Robust performance across all the business segments, led by Agro allied and supported by all other segments 1 • • • • ST Continued focus on local content with further backward integration investments and strategic partnership with FMAN Focus on retail customers with accelerated expansion in the B2C segments Increased investments in regional distribution centers targeting B2C products Enhanced roll-out of investments in RTM through out the year Active customer engagement via social media OPERATIONS New product offerings such Amazing Day, Auntie B Spaghetti Slim and Spaghetti, as well as the introduction of new SKUs in key categories Relaunched new packaging of Golden Penny vita brand "Pure Joy of consuming semovita relating to happiness" Continued cost programs - optimization Advancement of our sustainability commitments - FINANCIALS FY growth vs LY - Revenue +34% - Gross Margin +66% - Profit Before Tax +113% - Profit After Tax +126% Investment Grade credit rating of A- (moved up two levels) Successful issuance of N30bn bond at record low coupon rates 2x growth in ROE vs FY20 FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 6#7FMN Accelerating Investment for Topline Growth Food and Agro-Allied Group Top notch product innovation and customer engagement continues to boost brand experience 01 Distribution Improved distribution and availability of products Established RDCs to enhance re- 04 Digitalization Installed sales automation devices in distribution vans to track performance Increased focus on process automation with further automation of ordering, payment and rebates processes distribution and penetration of our emerging B2C categories Rolled out distribution vans to key dealers to drive new outlets and points of sales reach Support distributors to grow business scale via trainings & seminars, negotiating favourable terms of financing with funding partners, etc. 02 Display Continuous product innovation New packaging initiatives in addition to the enhanced re-distribution drive contributed to +23% growth of semovita and golden vita versus previous year Customer reach 03 Dialogue Active customer engagements on our social media platforms using hashtags, posts, etc. Effective media campaigns with a focus TV, Radio and Out-of-home on advertising RDC Regional Distribution Centers FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 7#8FY'21 Overview Strong financial performance driven by the B2C products REVENUE GROSS PROFIT PROFIT BEFORE TAX N772bn +34% vs. FY20 N107bn +62% N37bn +113% FMN Food and Agro-Allied Group PROFIT AFTER TAX N26bn +126% EARNINGS PER SHARE N6.38 +2.5x vs. FY20 vs. FY20 vs. FY20 vs. FY20 B2C focused products leading growth across the Group Mai Kirabe Mai Kwabe Golden Penny 325 MACARONI TWIST ELICHE GOLDEN PENNY GOLDENVITA Garri DAWAVITA Ale OLDEN PENN FOODS EVANC GRANUL SUGA SUGAR 50kg FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 O 8#902 FY21 Financial Review GOLDE ENNY FOODS The HOME of GOOD FOOD#10FY'21 Overview Strong financial performance in a challenging environment Revenue (N'bn) Gross Profit Margin 772 +34% 574 150 216 14% +44% +237bp 11% 16% +392bp 12% FMN Food and Agro-Allied Group Operating Profit Margin +65bp 6% 7% 7% +94bp 8% FY20 FY21 Q4'20 Q4'21 FY20 FY21 Q4'20 Q4'21 FY20 FY21 Q4'20 Q4'21 Profit Before Tax (N'bn) 37.2 +113% 17.5 5.2 +161% 13.6 FY20 FY21 Q4'20 Q4'21 255K FY20 Earnings Per Share +2.5x 638K FY21 71 +3.6x 253 Q4'20 Q4'21 FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 7% Return on Equity 16% 6% +2.1x +2.9x 2% FY20 FY21 Q4'20 Q4'21 10#11Financial Performance Impressive FY results with accelerating growth in Q4 FMN Food and Agro-Allied Group CONSOLIDATED STATEMENT OF PROFIT & LOSS (N'BN) all figures in N'm FY'21 FY'20 % change Q4'21 Q4'20 % change Revenue 771.6 573.8 34 216.3 150.3 44 Cost of sales (664.8) (508.0) 31 (182.0) (132.3) 37 Gross profit 106.8 65.8 62 34.3 18.0 91 Operating expenses (41.1) (32.6) 26 (16.0) (9.0) 79 Net operating gains and (losses) (13.4) 1.9 (801) (1.3) 1.4 (193) Operating profit 52.2 35.1 49 17.0 10.4 89 63 Investment income 3.7 2.4 53 0.3 1.7 (80) Finance costs (18.7) (20.0) (7) (3.7) (6.9) (46) Profit before taxation 37.2 17.5 113 13.6 5.2 161 Taxation (11.5) (6.1) 88 (3.4) (2.0) 13 73 Profit for the year 25.7 11.4 126 10.1 3.2 215 FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 11#12Financial Performance Solid revenue and bottom-line performance year on year FY2021 Profit Evolution (N'bn) 197.8 (156.9) (8.5) 11.4 FY20 PAT Revenue Cost of sales OPEX Increase FMN Food and Agro-Allied Group (15.4) 1.3 1.3 (5.4) 25.7 Net op. gains Investment income Finance costs Taxation FY21 PAT Decrease Total • Strong revenue growth, largely driven by the increase in volumes (+6% compared to the previous year) • Increased focus on local content and investments in backward integration in order to strengthen the value chain, despite higher costs of sales, driven by the costs of raw materials Net operating losses primarily driven by N12.2bn exchange losses and N1.7bn hedge valuations during first HY (no negative impact in Q4) • PAT soars off the back of continued bottom-line expansion in the agro-allied and B2C segment FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 12#13Source of capital Financial Highlights Strong balance sheet with improved leverage ratios Use of capital Summary Balance Sheet Net Debt (N 'bn) Debt Mix FMN Food and Agro-Allied Group All figures in N'bn FY21 FY20 % change PPE 208.7 216.9 (4) 196.6 26% 23% 36% Right of Use Assets 16.5 14.9 11 Working capital 92.0 46.3 99 Others 13.5 10.9 24 Cash 37.2 26.2 42 10 131.0 79% 109.7 81% 95.5 83.4 74% 77% 64% 21% 19% FY17 FY18 FY19 FY20 FY21 Total 367.9 315.2 17 FY17 FY18 FY19 FY20 FY21 ■Long-term debt Short-term debt Leverage Ratios Borrowings 132.7 109.6 Lease liabilities 16.7 13.4 Others 43.9 36.5 Non-controlling interest 6.4 6.9 Equity & Reserves 168.2 148.9 Total 367.9 315.2 222 MA 21 25 4.2x 20 (7) 13 17 3.5x 3.0x 2.8x 2.8x 1.9x 0.9x 0.7x 0.5x 0.5x FY17 FY18 FY19 FY20 FY21 Assets to Equity Net debt to Equity FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 13#14Financial Performance FY Cash and cash equivalent up 60% to N33bn CONSOLIDATED STATEMENT CASH FLOWS (N'bn) FMN Food and Agro-Allied Group FY'21 FY'20 % change Q4'21 Q4'20 % change Cash from operating activities 29.9 66.7 (55) (20.3) 21.7 (194) Capex (19.4) (16.2) 20 20 (9.5) (4.1) 132 Other investing activities 1.0 2.4 (59) 1.7 3.3 (49) Cash from investing activities (18.4) (13.8) 34 (7.9) (0.8) 858 Proceeds from borrowings 25.2 (12.7) (299) (16.4) (6.6) 148 Other financing activities (24.6) (27.2) (10) (3.9) (9.1) (57) Cash from financing activities 0.6 (39.8) (102) (20.3) (15.8) 29 Net cash flow for the period 12.1 13.0 (7) (48.4) 5.1 (1,046) Cash at beginning of the period Effect of exchange difference 20.7 7.6 174 81.2 15.5 424 0.4 0.1 517 n/a Cash at the end of the period 33.2 20.7 60 60 33.2 20.7 60 FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 14#15Financial Performance Strong cash from operations despite investments in inventory FY2021 Net Cash from Operations (N'bn) 25.7 36.5 4.4 8.5 15.0 29.5 Profit for the year Trade and other payables Non-cash items Net finance costs Increase (10.0) FMN Food and Agro-Allied Group 29.9 (79.9) Income tax FX gains or losses Other WC items Inventory FY21NCFOA Decrease Total Cash from operations of N30bn driven by strong sales and operational improvements across all the business segments Inventory grew in line with the upward trend in revenue with overseas payables managed down to mitigate increase in foreign exchange rate. Inventory as a proportion to sales in FY21 stood at 25% vs 20% last year NCFOA- Net cash from operating activities FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 15#1603 Business Segment Review NEW! Auntie B PASTA SPAGHETTI Contains Protein and Provides Energy حلال MALAL Net Weight 500g 16#17FMN Segment Financial Summary Food and Agro-Allied Group Profit growth driven by continuous improvement and cost efficiency across all the business segments Segment Revenue (N'bn) Segment Profit Before Tax (N'bn) % FY'21 FY 20 Q4'21 Q4'20 Change % Change FY'21 FY 20 % Change Q4'21 Q4'20 % Change Food 36.4 26.5 37 28.0 20.0 40 Food 478.3 358.4 33 134.4 96.3 40 Agro-Allied 13.9 0.5 2,667 5.1 0.4 1,044 Agro-Allied 139.4 105.5 32 33.8 24.2 40 Sugar 6.9 5.1 34 (0.1) (0.2) 76 Sugar 124.6 97.6 28 34.4 30.0 15 Support 1.9 (2.6) 174 2.5 (3.0) 185 Support 29.2 12.3 137 13.6 (0.1) 10,616 Intercompany (22.0) (12.0) (83) (22.0) (12.0) 83 Total 771.6 573.8 34 216.3 150.3 44 Total 37.2 17.5 113 13.6 5.3 158 Segment Revenue Contribution 62% Food 18% Agro Allied 16% Sugar 4% Support Segment Profit Before Tax Contribution 0 62% Food 24% Agro Allied 12% Sugar 3% Support FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 17#18FMN Aggregation of Inputs & Backward Integration Strategies Continued focus on investments in backward integration to strengthen the value chains Our Five Key Value Chains Food and Agro-Allied Group Grains TOPF BROHAR Sweeteners Oil & Fats Feeds & Protein Starches Strategic partnership with Flour Milling Association on local wheat Promotes local content with the sorghum milling plant in Kano with installed capacity of 100,000 metric tons per annum Solid backward integration investment plans in the sugar value chain Aggregation of raw materials via acquisitions from a network of smallholder farmers and young entrepreneurs; strengthen their capabilities by providing enabling structures such as trainings and related extension services Acquisition of land for cassava cultivation at the cassava processing facility in Ososa, Ogun State, and several out grower schemes underway The Group also works with the Fertilizer Producers & Suppliers Association of Nigeria (FEPSAN) and Nigerian Sovereign Investment Authority (NSIA) to ensure that farmers across the country have access to NPK fertilizer FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 18#19Food Segment High margin B2C products continues to drive profit upwards FMN Food and Agro-Allied Group Segment Revenue (N'bn) FY'21 FY'20 % Change % Q4'21 Q4'20 Change Revenue 478.3 358.4 33 134.4 96.3 40 10 Profit Before 36.4 26.5 37 28.0 20.0 40 40 Tax Volume Mix per category 0 23% FY'21 Pasta volume growth 26% FY'21 Ball Food volume growth 18% • • • 65% Flour 20% Pasta 10% Ball Foods 3% Noodles FY21 volume growth in value brands • 2% Others N120bn increase in revenue driven by rising B2C volume contribution with higher value share double digit growth in core B2C categories: +31% Noodles, +23% pasta and +23% Semo Margins improve as product mix becomes more B2C weighted, from 29% of total food volumes (FY'20) to 35% of total volumes (FY'21) Rolled out 60 distribution vans to key dealers resulting in enhanced point of sales reach. Additional 40 vans to be purchased in Q1'FY22 Invested in additional lines across Pasta, Semovita and Noodles, including packaging refresh for Semovita and Goldenvita during the year Investment in RDCs¹ to support new products. Rural depot support for dealers expanding distribution outside main urban locations RDC Regional Distribution Centers FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 19#20FMN Key Marketing Activities Efficient marketing and distribution strategies positively impact sales Food and Agro-Allied Group Increased awareness of the iconic Golden Penny brand through campaigns such as: • • Dare2Dream (Food MeetsFame) Phowaka (#GPShootyourShot) 60th Anniversary . 20over20 • Bella Naija Pasta and Chill Marketing activities Increase in consumer engagement driven by: • Communication support on digital platforms such as Facebook, YouTube, etc.. Instagram, Products well accepted both in trade and with consumers evidenced by: . Solid improvement in sales by 34% year on year • • Hashtags (#) • Posts using photos, videos, status and links • Consumer engagement growth in B2C segment 27% year on year volume Unique reach of c. N26m during the year Remarkable impact FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 20#21Digital Marketing Campaigns Efficient marketing and distribution strategies positively impact sales GOOD FOOD DAWAVITA GOLDEN P GOLDEN Garri SEMOVITA MACARONEN PENNY SAVITA Good Food FOOD Can you Take PICTURES Like this? OLDEN PEN Food Fame Meets or FMN Food and Agro-Allied Group DARE2DREAM SEASONS Over N2.5M naire worth of pries for grabe At the heart of the family Launched to celebrate Flour Mills of Nigeria Plc's 60 years milestone and build brand loyalty #GPShootYourShot PhotoWa Photowaka was launched to position the Golden Penny brand as a leader in fostering youth creativity Turn your passion for cooking into a career in the Golden Penny 8020FoodMeetsFame contest. Dare2Dream was Launched to position the Golden Penny brand as a leader in fostering youth creativity FOODS ...with GOLDEN PENNY PASTA, YOUR WAY is best. SPAGHETT TWIST MACARON Executed to connect with consumers on an emotional level. TOMA¹ has grown considerably, leaving competitor brands trailing 1TOMA Top of Mind Awareness OLDEN PEN FOODS 20 Over 20 Happy International Youth day FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 20over20 campaign was done to acknowledge and reward young Nigerians who despite the struggles and obstacles of 2020 have risen up to the challenges and succeeded. 21#22New Product Categories Continuous product innovation to meet the market's needs FMN Food and Agro-Allied Group • • • • Recently launched Amaizing Day breakfast cereal to tap into the opportunities in the breakfast cereal market Ready-To-Eat Cereal¹ (RTEC) represent 65% of breakfast consumption in Nigeria, while heavy users contribute to about 72% of the RTEC volume FMN has invested in the soft cereal sub- segment, which is expected to experience continued rapid growth Other products launched in the year include Auntie B Spaghetti and Spaghetti Slim 1Source: Kantar Market Research LDEN GOLD PENN FOODS The HOME of GOOD FOOD PASAS Power4ll Nutrition PROTEIN VITAMINA AMAIZING Feed their DAY Ten CALCIUM VITAMIN amazing with THE POWER OF NEW! Auntie B PASTA め Auntie B SPAGHETTI SLIM PRATS 246HE774 ains Protein and Provides Energy FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 220g 22#23Local Wheat Development Strategic partnership with Flour Milling Association of Nigeria (FMAN) to boost local content 6155 ARZIKI SEED S.CTD WHEAT SEED AGCO FMA WAIT SE ARMERS FRIEND • • FMN Food and Agro-Allied Group Aggregated over 800 tons of wheat grain in 15 collection points across 3 states 493 farmers provided with mechanized harvesting and threshing services Deployed 5 combine harvesters and 7 threshers with tractors for harvest operations 80 tons of seed production expected this season and 800 hectares of grain production next season FMN successfully implemented programs such as the out grower, wheat farmers center, and seed production program MAT SEED WALLY SAFERTILIZE FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 23#24FMN Sugar Segment Food and Agro-Allied Group Improvement in bottom line off the back of revenue growth and increased operational efficiency Segment Revenue (N'bn) FY'21 FY'20 % Change Q4'21 Q4'20 % Change 28% FY'21 sales growth Revenue 124.6 97.6 28 34.4 30.0 15 Profit Before Tax 6.9 5.1 34 (0.1) (0.2) 76 DEN PENN FOODS GOOD FOOD OLDEN PENN FOODS 90 CUBES 500g GOLDEN PENNY RAW SUGAR 50kg GOLDEN PENNY Net WT PACKED FOR INDUSTRIAL USE ONLY WHITE CUBE SUGAR VITAMIN A FORTIFIED GOLDEN PENA LDEN FOODS The HOME of GOOD FOOD PREMIUM GRANULA SUGAR FOODS GOOD FOOD Sunti Brown Sugar OLDEN PENNY SUGAR 50kg 50kg 283bps FY'21 improvement in Sunti's EBITDA margin 76% FY'21 locally produced Brown Sugar volume growth . GSC operational excellence program continues to drive down production cost and ensure improvement in production process, maintenance and quality Solid backward integration investment plans in the sugar value chain to increase sugar cane production capacity Improved mechanical harvesting and loading capacity also implemented at Sunti plantation, contributing to the improvement in EBITDA margin Q4'21 loss driven by the impairment and upgrading of assets in Sunti during the year to further protect the facilities Locally produced brown sugar is establishing footprint in the B2B segment, with plans to also penetrate the retail market in Nigeria FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 24#25Agro Allied Segment PBT improves by N13.4bn from a break-even position last year Segment Revenue (N'bn) FY'21 FY'20 % Change Q4'21 Q4'20 % Change 10% FY21 segment volume growth Revenue 139.4 105.5 32 33.8 24.2 40 Profit Before Tax 13.9 0.5 2,667 5.1 0.4 1,044 Agro Allied PBT Trend (N'bn) (12.5) (1.0) 0.5 13.9 FY'18 FY'19 FY'20 FY'21 27x FY'21 Profit Before Tax growth 4.2% FY'21 improvement in EBITDA margin FMN Food and Agro-Allied Group • • Oil and fats business grew 14%, while pre-tax profit margin expanded by 1,100bps y-o-y as streamlining raw material aggregation process and reduction of waste lowered costs. Export sales accounted for 20% of total sales from the value chain Animal feed business sees volume growth driven by the introduction of Omega catfish feed, as well as the decentralization of the manufacturing locations through toll milling and lease arrangements Extension of blending plants and sales outlets, as well as expansion into northern and eastern markets underpin 29% volume growth in the Fertilizer business . Starch business accelerates backward integration plans with farmland in Ogun State being developed to source cassava through an aggregator in-grower scheme FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 25#26Support Segment Solid growth in revenue despite intense competition Segment Revenue (N'bn) FY'21 FY'20 % Change Q4'21 Q4'20 Change Revenue 29.2 12.3 137 13.6 (0.1) 10,616 Profit Before 1.9 (2.6) 174 2.5 (3.0) 185 Tax SUPER SACK BAGCO DY BAGS IT BETTER FMN Food and Agro-Allied Group 12% FY'21 Bagco volume growth N2.4bn Q4'21 Before Tax Profit reverses recorded losses since Q1'21 2.0% FY'21 improvement in EBITDA margin Strong growth in customer segments (harvest, cement, feed and others) and continuous product innovations (zero fly, hermatic bags, irrigation holes) have driven impressive top-line performance Port facilities business performed well with increase in the volume of cargo delivery. Improved customer response time and accelerated discharge operation continues to maintain market position Transportation logistics business also saw 25% revenue growth y-o-y, as the use of night operations and the introduction of a control center led to faster deliveries and improvement in truck-turn-around time FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 26#2704 Internal Initiatives GOLDEN ENNY FOODS The HOME of GOOD FOOD GOLDEN PENNY GOLDENVITA Whole Wheat Meal 3X MORE FIBRE than regular Semolina 27#28FMN Focus on Sustainability Continued focus in providing daily nourishment for Nigerian families for over 60 years Food and Agro-Allied Group Maiden Sustainability Report Packaging and Waste Management . • • Reduced the negative environmental impact of our packaging by using general petrochemical based polypropylene packaging materials Proper disposal of waste by licensed vendors Recycled an average of 1.12% of fine flour input for offal production Installed water treatment plant with daily capacity of 250 cubic meters at the Golden Penny Pasta division Biodiversity • Constructed production plants to minimize energy utilization for stock material movement Dust generation from production is kept in check using high-tech filter-bag mechanisms and pneumatic fans Reduce pests by ensuring minimal spillage, improved processes, and use of preventative measures pest Energy Efficiency • Installed two 15 megawatts dual fuel turbines enhanced with heat recovery steam capability to save energy The Sugar business rolled out Energy management system in line with ISO 50001:2018 to ensure more cost-effective use of energy sources Power bank installed at the cassava processing plant to reduce diesel expenses Community Development FMN invested in the following projects to address community needs: - Renovation of the Food Technology Department at Yaba College of Technology, Lagos State Constructed the Vocational Centre for Special Needs Children at Methodist Primary School, Арара Established Flour Mills Food Research Centre in partnership with the University of Ibadan Refurbished the Dental Clinic at the College of Medicine, University of Lagos FLOUR MILLS OF NIGERIA PLEINVESTOR PRESENTATION-FULL YEAR 2021 FMN FMN 2019/2020 SUSTAINABILITY REPORT Feeding the Nation & Enriching Lives Through Sustainable Operations 28#29Focus on Sustainability Unrelenting advancement of our sustainability commitments • • FMN Food and Agro-Allied Group Consumer Health & Safety Introduced the Gold standard of manufacturing wheat- based products, including bread flour and semolina Installed quality assurance systems (ISO 9001 and Hazard Analysis and Critical Control Point (HACCP)) for selection of ingredients used in our products Engaged in sustainable and responsible sourcing of raw materials The Group continues to produce quality and safe products for all its consumers. People Strong support from over 15,000 employees across the country Continuous employee recognition, with our teams being the Group's greatest resource Talent development through trainings and other performance improvement initiatives Gender Diversity Maiden Sustainability Report FMN . FMN Women Network (FMNWN) was set up in 2018 with the objectives of: gender Improving diversity, especially at management levels Improving performance & engagement ratings by driving self and career leadership managing related Proactively gender best Ensure practice regarding employee remuneration and benefits workplace challenges Mentoring programme established to ensure FMN produces future female business leaders FMN • Out of three last board appointments, females 2019/2020 SUSTAINABILITY REPORT two were Feeding the Nation & Enriching Lives Through Sustainable Operations FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 29#30FMN Corporate Social Responsibility We are taking the lead in addressing social concerns amongst our communities Food and Agro-Allied Group Community Outreach Programs Education, research, and skills development RL MAKE THE D Nation, Everyday Infrastructure Development CUSTOMARY COURT Embarked on a social campaign to sensitize communities about the second wave of COVID-19. Donation of Company Products to Orphanages across the nation. Repair of Bore-Hole Machine earlier donated to Ogundele Community in Ibadan Medical outreach through the donation of blood pressure and diabetes detection machines at the Abanla Community in Oyo State Annually provide a donation to the University of Ibadan. The funds used for food research in conjunction with the Flour Mills Food Research Centre, that was established to foster the cause of food science and technology in Nigeria Annual financial support for the running of a vocational center for children with learning disabilities Youth from Calabar communities sponsored for a skills acquisition program • Construction and commission of a Customary Court for the Ososa Community in Ogun state. Renovation of several community primary schools at host communities in Niger state Refurbished the collapsed fence in Essien Town Community, Cross-River FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 30#3105 Business Outlook P GOLDEN FOODS The HOME of GOOD FOOD PENNY No.1 PASTA BRAND IN NIGERIA DURUM e GOLDEN PENNY COUSCOUS ENERGY PER-1359#32Proposed Dividend • Total proposed dividend of N6.8bn vs N5.7bn last year, subject to AGM ratification FMN Food and Agro-Allied Group • Proposed dividend: N1.65 per share up from N1.40 per share last year (N1.20 two years ago and N1.00 three years ago) with the Group continuing to invest into growth with the opportunities that are arising • AGM date for approval: September 8, 2021 • Payout date if approved: September 9, 2021 FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 32 32#33Outlook FMN Food and Agro-Allied Group • The Group remains guided by its mission to 'Feed the Nation Everyday' through the 5 core value chains Grains, Oils and Fats, Proteins, Sweeteners and Starch, by executing the overall long-term strategy and staying focused on local content and value additions Expand consumer reach with the route to market initiatives and product offerings across the group, especially in the B2C segment with significant opportunities ahead • Continue to invest in production capacity and aggregation/sourcing • Remain focused on increasing operational efficiency with accelerated plans for cost optimizations across the Group to ensure competitive product offerings and profitability in the new operating environment FLOUR MILLS OF NIGERIA PLC | INVESTOR PRESENTATION FULL YEAR 2021 33#34Auntie B PASTA Macaroni GOLDEN PENNY SEMOVITA Premium Quality Sema NEW COLSCOUS TO C en 50 WHITE BUCAR GRANULATED SUGAR TWIST ELICHE GOLDEN PENNY SEMOVITA Premium Quality Sem Mai Kwabo Pasta Marareal GOLDEN PENNY GOLDENVITA Whole Wheat Meal Mai Kwabe SPAGHETTIGHETTI GOLDEN PENNY MASAVITA 100% While Moe Auntie B PASTA Twist 00 AMAIZING DAY May NEW NEW DAWAVITA Golden Perey PIRK Golden Penny MACARON PALLY Out Suya Garri THANK YOU Flaves APPAR