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Investor Presentaiton

ANNUAL REPORT 2020 80 Notes to the Financial Statements For the year ended 31 December 2020 14 Biological Assets The movement in Biological assets for the year was as follows: In thousands of naira Cost Balance at 1 January 2020 Additions Balance at 31 December 2020 Amortisation and impairment losses Balance at 1 January Amortisation for the year Balance at 31 December Carrying amounts At 1 January 2020 At 31 December 2020 15 Intangible Assets The movement in intangible assets for the year was as follows: In thousands of naira Cost Balance at 1 January 2019 2020 2019 189,848 189,848 16 Prepayments In thousands of naira Employee accommodation Business premises Deposit for imports Prepaid expenses Non-current prepayments Current prepayments 2020 2019 32,343 65,807 82,742 154,980 Note 16 (a) 16,237,361 20,918,903 1,156,073 17,508,519 1,276,060 22,415,750 Note 16 (b) 17,006 17,491,513 17,508,519 54,955 22,360,795 22,415,750 a) Deposit for imports represents prepayments for imports made to the bank by the Company (#16.24 billion in 2020 and #18.83 billion in 2019) and GMT Limited (Nil in 2020 and #2.09 billion in 2019); the Company's logistics provider to purchase inventory. As at year end, this amount is held by the bank for settlement of the foreign supplier. Non-current prepayments represent long-term portion of prepaid rent. b) 189,848 17 Deferred Tax Liabilities Deferred tax liability/(asset) In thousands of naira Goodwill Software Total Additions Balance at 31 December 2019 697,949 697,949 697,949 697,949 Balance at 1 January 2020 697,949 697,949 Additions 1,783,506 32,324 1,815,830 Balance at 31 December 2020 1,783,506 730,273 2,513,779 Amortisation and impairment losses Balance at 1 January 2019 Amortisation for the year Balance at 31 December 2019 Balance at 1 January 2020 Amortisation for the year Balance at 31 December 2020 Carrying amounts At 31 December 2019 At 31 December 2020 1,783,506 616,522 525,663 616,522 2,309,169 Property, plant & equipment Employee benefit Foreign exchange loss Foreign exchange gain Net deferred tax liability 2020 2019 6,766,702 (547,906) (5,178) 799,299 7,012,917 5,257,355 (239,703) (5,299) 956,601 5,968,954 In thousands of naira Property, plant & equipment Employee benefit Foreign exchange loss Foreign exchange gain Total Balance 1 January 2019 Recognised in profit or loss 4,194,323 (195,379) 1,063,032 81,427 81,427 Balance 31 December 2019 5,257,355 (44,324) (239,703) (226,258) 220,959 (5,299) 385,458 4,158,144 571,143 1,810,810 956,601 5,968,954 81,427 81,427 81,427 81,427 Deferred tax in respect of acquisition of Nutricima Limited's business 24,028 24,028 123,183 123,183 Prior period adjustment/ 204,610 204,610 reclassification (100,044) Recognised in profit or loss 1,585,363 (3,026) (273,417) 121 385,459 (542,761) 282,389 769,306 Recognised in other comprehensive income Balance 31 December 2020 6,766,702 (31,760) (547,906) (31,760) (5,178) 799,299 7,012,917 Goodwill is as a result of the acquisition of Nutricima Limited's dairy business in Nigeria. At 31 December 2020, there is no unrecognised deferred tax asset or liability (2019: Nil). FrieslandCampina WAMCO Nigeria PLC FrieslandCampina WAMCO Nigeria PLC 81
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