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ANNUAL REPORT 2020 92 Notes to the Financial Statements For the year ended 31 December 2020 ii. Exposure to currency risk (d) The summary quantitative data about the Company's exposure to currency risk as reported to the Management of the Company based on its risk management policy was as follows: 2020 2019 Amounts in thousands Euro USD Euro USD Interest Rate Risk In managing interest rate risk, the Company aims to reduce the impact of short-term fluctuations in earnings. Dividend pay-out practices seek a balance between giving good returns to shareholders on one hand and maintaining a solid debt to equity ratio on the other hand. At the reporting date the interest rate profile of the Company's interest-bearing financial instruments was: Fixed rate instruments The Company has no fixed rate instruments. Cash and cash equivalents 176 128 Trade and other receivables 1,201 374 Trade and other payables (43,169) Loans and Borrowings Net exposure (41,792) (87,217) (174,284) (260,999) 14 876 (29,707) 108 Variable rate instruments 497 (121,201) In thousands of naira Short-term deposits - financial assets 2020 2019 7,500,796 462,721 (28,817) (120,596) The following significant exchange rates applied during the year: Euro United States Dollar (USD) iii. Sensitivity analysis Average rate 2020 2019 Year end spot rate 2020 2019 435.56 381.43 403.29 361.93 485.95 397.78 408.86 364.65 Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The change would not affect equity. Variable rate instruments 2020 100 BP increase 100 BP decrease 2019 Profit or loss 100 BP increase 100 BP decrease 75,008 75,008 75,008 75,008 3,239 3,239 (3,239) (3,239) A 10 percent (2019:10 percent) strengthening of the Naira, as indicated below, against the Euro and the USD would have affected the measurement of financial instruments denominated in foreign currency and increased / (decreased) equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Company considered to be reasonably possible at the end of the reporting period. The analysis assumes that all other variables, in particular interest and inflation rates, remain constant and ignores any impact of forecast sales and purchases. Cash flow sensitivity (net) (e) Fair Values Fair values versus carrying amount The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of financial position, are as follows: Effect in thousands of Naira 2020 2019 Profit or (loss) Profit or (loss) Euro USD 2,030,900 10,382,117 1,178,234 4,397,512 In thousands of Naira 31 December 2020 Carrying amount Fair value value 31 December 2019 Carrying amount Fair value value A 10 percent weakening of the Naira against the above currencies at the reporting date would have had the equal but opposite effect to the amounts shown above. Assets carried at amortised cost Loans and receivables Cash and cash equivalents 17,986,655 17,986,655 88,702,534 88,702,534 106,689,189 106,689,189 14,797,025 7,857,211 22,654,236 14,797,025 7,857,211 22,654,236 Liabilities carried at amortised cost Trade and other payables Loans and borrowings 92,318,922 72,575,415 92,318,922 72,575,415 68,532,097 68,532,097 2,086,943 2,086,943 164,894,337 164,894,337 70,619,040 70,619,040 The basis for determining fair values is disclosed in Note 4. FrieslandCampina WAMCO Nigeria PLC For financial instruments that are short-term, management believes that their fair values are not expected to be materially different from their carrying values. FrieslandCampina WAMCO Nigeria PLC 93

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