Investor Presentaiton

ANNUAL REPORT 2020 96 Notes to the Financial Statements For the year ended 31 December 2020 (d) Transactions with Related Parties (i) The Company has a Know-How and Trade mark agreement; and Research and Development Technical Know-How agreement with FrieslandCampina Nederland B.V., for which it pays royalties. Technical Know-How agreement royalty fees are computed as a percentage of profit before tax while royalty fees on trade mark and research and development agreement are computed as a percentage of net sales of the related products. An amount of N4.56 billion (2019: #4.42 billion) has been charged to the profit or loss account in respect of these fees (Note 8). The agreements are made with the approval of the National Office for Technology Acquisition and Promotion (NOTAP) and payments are made to FrieslandCampina Nederland B.V. Details of the NOTAP certificates are listed below: File number NOTAP/AG/MN/126/22/223 with a limit not exceeding #5.75 billion File number NOTAP/AG/MN/126/20/173 with a limit not exceeding #5.02 billion (Expired)* File number NOTAP/AG/MN/126/20/432 with a limit not exceeding #2.05 billion (Extension)* File number NOTAP/AG/MN/126/21/153 with a limit not exceeding #1.84 billion *The expired NOTAP agreement relates to Know-How and Trade Mark agreement which expired in December 2020 and was extended till June 2021, to allow time to address FX illiquidity issue and remit the balance accordingly. (ii) The Company also entered into transactions with FrieslandCampina Nederland B.V., for the purchase of finished products, raw materials, spare-parts and technical support. (iii) The Company exports milk products to Ghana, Cote d'Ivoire through Friesland Export West Africa, Netherlands. 30 Subsequent Events Subsequent to the reporting date, the Board of Directors recommended a dividend of #6.74 per share subject to the deduction of appropriate withholding tax at the time of payment. This dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. There are no other significant subsequent events which could have had a material effect on the state of affairs of the Company as at 31 December 2020 that have not adequately been provided for or disclosed in the financial statements. In the first quarter of 2020, there was a COVID-19 outbreak which has spread globally. The outbreak has been declared a public Health Emergency of International concern by the World Health Organization (WHO) in March 2020. During the year, thousands of cases have been confirmed in Nigeria by the Nigerian Center for Disease Control. The disease has caused a significant reduction in social interaction, with a shutdown of public facilities and physical interaction. Measures taken to contain the virus affected economic activities during the year. In light of these recent developments and its underlying impact on Nigeria, the company was operational all through this period and has it as top priority to fulfil its promise to provide affordable dairy nutrition to all Nigerians. Also subsequent to year end, a judgement was received in favour of FrieslandCampina WAMCO Nigeria (FCW). The suit was filed against FCW by an erstwhile employee, claiming among other things that he had been unfairly dismissed in 2012. His claim in damages before the court was an approximate cumulative amount of #250,000,000 (Two Hundred and Fifty Million Naira only). On Wednesday, 24 March 2021, judgement was given in favor of the Company. With the judgement of the Court being delivered and the case dismissed without awarding costs to the Company, this brings an end to the case except the Claimant chooses to appeal against the judgment. Other National Disclosures FrieslandCampina WAMCO Nigeria PLC FrieslandCampina WAMCO Nigeria PLC 97

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