Investor Presentaiton
ANNUAL REPORT 2020
38
Report of the Directors
For the year ended 31 December 2020
Report of the Directors
For the year ended 31 December 2020
Bollore Africa Logistics Nigeria Limited
First Media Red Star Intl Company
GMT Nigeria Limited
Golden Oil Industries Limited
Nampak Plc
Presco Nigeria Limited
Sonnex Packaging Nig Ltd.
Supermaritime Nigeria Ltd.
Veevee Paper Products Limited
12 Know-How and Licence Agreements
The Company has a Know-How Licence and Trademark Licence Agreement; a Research and Development Know-
How Licence Agreement and a Dairy Development Agreement with FrieslandCampina Nederland B.V.
Under the agreements, technological, scientific and professional assistance are provided for the manufacture,
quality control and packaging of the Company's products, new products development and training of personnel.
The Royalty charges as stipulated in the respective agreements are as follows:
Know-How Licence and Trade mark Licence Agreement is 1% of the turnover of the products produced and
sold by FrieslandCampina WAMCO Nigeria PLC and 2% of the Company's annual profit before tax.
Research and Development Know-How Licence Agreement is 1% of the turnover of the products produced and
sold by FrieslandCampina WAMCO Nigeria PLC.
Dairy Development Agreement is 0.75% of the turnover of the products produced and sold by FrieslandCampina
WAMCO Nigeria PLC.
The agreements are approved by the National Office for Technology Acquisition & Promotion (NOTAP).
13 Safety, Health and Environment
The Company is committed to safety, health and environment as core values of conducting business. Safety, health
and environment regulations are in force within the Company's premises and employees are aware of existing
regulations. Protective clothing and firefighting equipment are provided in the production areas, warehouses
and offices. The Company provides healthcare benefits to employees and operates an on-site clinic in the factory
premises. The on-site clinic is managed by a reputable hospital providing primary health care round the clock for
employees at work. The Company complies with relevant statutory provisions and regulations on health, safety
and welfare matters as well as providing the education required to enable compliance by employees. A week-long
safety programme is organized every year, to get employees involved with matters of safety.
14 E-Dividend
The Company consistently encourages its shareholders to embrace the e-dividend and e-bonus introduced in the
capital market. This is to enable prompt crediting of shareholders' accounts with their CSCS account with bonus
shares. This will also eliminate the cost of posting dividend warrants and share certificates as well as the risk of
being lost in the post.
15 Donations
Making a positive contribution to society is central to our purpose. The Company recognises its responsibility to
the communities in which it operates and remains committed to supporting these through targeted programmes
and initiatives. In 2020, the Company made donations amounting to #615,659,348 (2019: #19,980,075) as follows:
Support to vulnerable groups against the spread of COVID-19
Support through Coalition Against COVID
Support through Lagos State Government
Support through Federal Ministry of Humanitarian Affairs, Disaster Management & Social
Development
Support through other Organisations
Amount in Naira
500,000,000
47,040,000
42,561,792
21,101,445
610,703,237
Charity donations
Samaritan Project, Ebute Metta
Old People's Home Yaba
Franciscan Sisters of the Immaculate, Lekki - Peninsula
SOS Children's Village Isolo
Red Cross Adekunle Yaba
Compassionate Orphanage, Igando
Heart of Gold Orphanage, Surulere
Ovie Brume Foundation, Victoria Island
St. Monica Orphanage, Iju Ishaga
Amount in Naira
164,197
164,197
164,197
164,197
164,197
164,197
164,197
164,197
164,197
Little Saints Orphanage, Palm Grove
194,400
Heritage Homes, Anthony Village
164,197
Our Lady of Lourdes Maternity & Clinic Ipetunmodu, Osun State
164,196
Oluyole Cheshire Home Ibadan, Oyo State
164,196
Jesus Children Mission Outreach, Bodija, Ibadan, Oyo State
Winnie's Castle of Love Orphanage Home, Ibadan, Oyo State
Little Sisters of the Poor Awkunana, Enugu State
Marian Monastery, Enugu State
164,197
164,197
164,197
164,197
Marble House of Sarah Ibusa, Delta State
Dominican Sisters' College Abatete, Anambra State
Madonna School for the Handicapped, Okpanam, Delta State
Methodist Motherless Babies Home, Aba, Abia State
Seventh Day Adventist Motherless Babies Home - Aba, Abia State
Chims Motherless Home
164,197
164,197
164,197
164,197
164,197
164,197
Ufon Abasi Orphanage
164,197
164,197
164,197
164,197
164,197
164,197
164,197
4,956,111
Bert Torey Home for the Mentally Handicapped Children, Zaria
Adonai Orphanage Home & Widow Center
Our Lady's Hospital & Orphanage Zawan,
Bethsida Orphanage Ikachi Benue
Child Care Trust, Gwari Abuja
Mother's Welfare Group, Asokoro, Abuja
615,659,348
In accordance with Section 43(2) of the Companies and Allied Matters Act, the Company did not make any donation
or gift to any political party, political association or for any political purpose in the course of the year.
16 Auditors
In accordance with Section 401(2) of the Companies and Allied Matters Act, Messrs. PricewaterhouseCoopers have
indicated their willingness to continue in office as Auditors of the Company.
BY ORDER OF THE BOARD
Брат
Olubukunola Olateru FCIS (Mrs.)
Company Secretary
FRC/2018/ICSAN/00000017968
Lagos, Nigeria
25 February 2021
FrieslandCampina WAMCO Nigeria PLC
FrieslandCampina WAMCO Nigeria PLC
39View entire presentation