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Investor Presentaiton

ANNUAL REPORT 2020 84 Notes to the Financial Statements For the year ended 31 December 2020 22 Employee Benefit Liabilities In thousands of naira Long service award benefits obligation Other post employment benefits (b) Movement in other Post Employment Benefits 2020 2019 In thousands of naira 2020 2019 1,045,087 322,740 1,367,827 696,310 186,339 At 1 January 186,339 133,457 i. 882,649 Long service award relates to benefits given to staff based on their length of service in the Company. This benefit is in the form of cash and gift items. ii. Other post employment benefits represent the 'terminal milk benefit' which is a post employment benefit that accrues to the employees and is due at the point of exiting the Company. The benefit was valued as at year end by Ernst & Young. The Company has post employment benefit schemes and other long term employee benefit scheme for its employees. The liabilities are all based on independent actuarial valuations by O. O. Okpaise of Ernst & Young with FRC registration number of FRC/2012/NAS/00000000738. The employee benefit liabilities expose the Company to actuarial risks such as longevity risk and interest rate risk. There are no plans to terminate these benefits. Included in profit or loss Past service cost (plan amendment) Current service costs (1,186) 21,847 16,039 Interest cost 25,731 21,016 Included in other comprehensive income Actuarial loss/(gain) 105,866 19,168 153,444 55,037 Other Payments during the year At 31 December (17,043) (2,155) 322,740 186,339 (a) Movement in Present Value of Long Service Award Benefits Obligation In thousands of naira At 1 January (c) Actuarial (Gains) and Losses Recognised in Other Comprehensive Income for Gratuity and Other Post Employment Benefit Obligations 2020 2019 2020 2019 In thousands of naira 696,310 477,010 Included in profit or loss Current service costs 82,461 57,666 Interest cost 93,664 73,251 Past service cost Amendment 14,752 Actuarial loss 232,527 114,498 408,652 260,167 Other Benefit paid during the year (59,875) (40,867) At 31 December 1,045,087 696,310 Cumulative amount at 1 January Loss/(gain) recognised during the year Cumulative amount at 31 December 387,898 105,866 368,730 19,168 493,764 387,898 FrieslandCampina WAMCO Nigeria PLC FrieslandCampina WAMCO Nigeria PLC 85
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