Guinness nigeria plc annual report 2009

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www.guinness-nigeria.com GUINNESS Annual Report 2009
FINANCIALHIGHLIGHTSDIRECTORSANDCORPORATE
INFOMATION
CHAIRMAN’’SSTATEMENTFINANCIALSTATEMENTCORPORATEEVENTSSHAREHOLDERS’’INFORMATIONDIRECTORS’’REPORT
FINANCIAL CALENDAR DATE
59th
Annual General Meeting to receive the audited 03 November 2009
financial statements for the year ended 30 June 2009
Payment of Dividend 04 November 2009
FINANCIAL HIGHLIGHTS
2009 2008
=N=’’000 =N=’’000
Turnover 89,148,207 69,172,852
Profit before taxation 18,991,762 17,092,950
Taxation (5,450,573) (5,232,070)
Profit after taxation 13,541,189 11,860,880
Declared dividend (18,879,045) (6,637,165)
Proposed dividend (11,061,941) (8,849,553)
Capital expenditure (fixed assets and intangible assets) 4,227,008 11,482,653
Shareholders’’ funds 31,524,701 36,862,557
Earnings per share 918k 804k
Declared dividend per share 1,280k 450k
Net worth per share* 2,137k 2,499k
Share price at year end 12,900k 12,400k
The Directors recommend the payment of a final dividend of N11.1 billion, which based on the number of ordinary shares in issue on
30 June 2009, represents a dividend of 750 kobo per ordinary share.
*Net worth per share represents shareholders’’ funds/issued share capital of 1,474,925,519 ordinary shares of 50 kobo each.

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GUINNESS Annual Report 2009 www.guinness-nigeria.com
NOTICE OF
ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN that the 59th
Annual General Meeting of the Members of Guinness Nigeria Plc will be
held in the Grand Banquet Hall, Civic Centre, Opposite 1004 Estates, Victoria Island, Lagos on Tuesday, 03 November
2009 at 10.00 O’’clock in the forenoon to transact the following businesses:
AGENDA
ORDINARY BUSINESS
1. To receive the Report of the Directors, the Financial Statements for the year ended 30 June 2009 and the Report
of the Auditors thereon.
2. To declare a dividend.
3. To re-elect Directors.
4. To authorise the Directors to fix the remuneration of the Auditors.
5. To elect Members of the Audit Committee.
SPECIAL BUSINESS
6. To fix the remuneration of the Directors.
NOTES:
PROXY
A member of the company entitled to attend and vote is entitled to appoint a proxy to attend and vote instead of him/
her. A proxy need not also be a member. A form of proxy is enclosed and if it is to be valid for the purposes of the
Meeting, it must be completed and deposited at the office of the Registrar, Union Registrars Limited, 2 Burma Road,
Apapa, Lagos not less than 48 hours before the time for holding the Meeting.
CLOSURE OF REGISTER
The Register of Members and Transfer Book will be closed from Friday, 02 October 2009 to Friday, 16 October 2009,
both days inclusive for the purpose of updating the Register of Members.
DIVIDEND WARRANTS
If the payment of the dividend is approved, it is intended that the warrants will be posted on 04 November 2009 to
holders of shares whose names appear in the Register of Members on Friday, 02 October 2009.
AUDIT COMMITTEE
In accordance with Section 359(5) of the Companies and Allied Matters Act [cap C20, Laws of the Federation of
Nigeria, 2004], a nomination (in writing) by any member or a shareholder for appointment to the Audit Committee
should reach the Company Secretary at least 21 days before the date of the Annual General Meeting.
Dated: 03 September 2009
By Order of the Board
SESAN SOBOWALE
Company Secretary/Legal Adviser
REGISTERED OFFICE
The Ikeja Brewery, Oba Akran Avenue Private Mail Bag 21071, Ikeja.

INFOMATION
5
BOARD OF DIRECTORS
AND CORPORATE INFORMATION
DIRECTORS
B. A. Savage - Chairman
N. B. Blazquez (British) - Vice Chairman
D. M. Hainsworth (British) - Managing Director
F. A . Ogunbamowo
J. O. Irukwu (SAN)
B. E. Gwadah
R. C. Plumridge (British)
B. J. Rewane
F. O. Agbonlahor
I. C. Mafeni (Mrs.)
T. A. Olagunju
K. R. Allan (British)
J. C. A. Anderson (British)
COMPANY SECRETARY/LEGAL ADVISER
Sesan Sobowale
AUDITORS
KPMG Professional Services
(Chartered Accountants)
22A Gerrard Road
Ikoyi, Lagos.
SOLICITORS
T. O. Shobowale - Benson & Co.
119 Broad Street
Lagos.
REGISTRARS AND TRANSFER OFFICE
Union Registrars Limited
2 Burma Road
Apapa, Lagos.
BANKERS
Diamond Bank Plc
First Bank of Nigeria Plc
First City Monument Bank Plc
Guaranty Trust Bank Plc
Nigeria International Bank Limited
Standard Chartered Bank Nigeria Limited
Union Bank of Nigeria Plc
United Bank for Africa Plc
Zenith Bank Plc
REGISTERED OFFICE
The Ikeja Brewery
Oba Akran Avenue
P.M.B. 21071
Ikeja, Lagos.
RC 771
HEAD OFFICE
24 Oba Akran Avenue
P.M.B. 21071 Ikeja.
Tel: (01) 497 1560-9, 497 6420-9
497 0560 –– 9, 2709100
Fax: (01) 4970560, 2709338
BREWERIES
Ogba Brewery
Acme Road, Industrial Estate Ogba.
Tel: (01) 497 1560-9, 497 6420-9
Fax: (01) 497 0560
Benin Brewery
Benin-Asaba Road
Oregbeni Industrial Estate
Ikpoba Hill, Benin City.
Tel: (052) 255608-9, 600629-31
Fax: (052) 252129
Aba Brewery
Osisioma Industrial Layout
Aba, Abia State.
Tel: (082) 350921, 351123

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Fellow shareholders,
distinguished ladies and
gentlemen, I am pleased to
welcome you all to the 59th
Annual General Meeting of
our great Company and to
highlight the progress that
Guinness Nigeria Plc has
made during the 2009
financial year.
for His mercies and favour in seeing me to the pinnacle of
my career in Guinness Nigeria Plc. I should also thank my
colleagues on the Board for the huge confidence that my
appointment represents. Let me also thank my immediate
predecessor, Engr. (Dr.) Ralph Alabi who had, for the last
13 years, steered the ship of our company to the enviable
level it has reached today.
Although I have been with Guinness Nigeria Plc for
over 26 years in several positions of increasing
leadership responsibilities and for the last 13 years,
on the Board of Directors, this is the first Annual General
Meeting that I will have the privilege of presiding over
as Chairman since my appointment, which took effect
from 1st July 2009. I will like to thank the Almighty God
Mr. B. A. Savage
Chairman
CHAIRMAN’’S STATEMENT

INFOMATION
9
I wish to commend you, fellow shareholders, for the support
and co-operation that you have given to the company and
the Board over the years especially in the 2009 financial
year, which has resulted in the excellent results being
presented at this Annual General Meeting.
Permit me, ladies and gentlemen, to highlight the key events
in the operating environment that underscored our
performance in the 2009 financial year.
BUSINESS ENVIRONMENT
2008 was one of the most challenging periods in the
economic and financial evolution of the Nigerian market.
The initial, but widely held view, that the Nigerian economy
was insulated from the global meltdown and that the global
crisis was solely responsible for the economic and business
challenges of Nigeria is now being questioned. Recent
developments have confirmed that the economy and, by
extension, our market is an integral part of the global
economy and that the Nigerian economy was in the midst
of its difficulties even before and during the current crisis.
There has been a validation of the notion that the global
economy is now on the path to recovery based on recent
data. The surge in economic activities that will accompany
this global recovery is expected to have a significant and
positive effect on the Nigerian economy, our industry and
company alike. The Central Bank of Nigeria (CBN) is
equally optimistic and in its latest report projected that real
economic growth in 2010 will reach double digits after a
modest 5.5% this year.
The economic challenges of 2009 were daunting but not
insurmountable. The rate of growth of government revenue
from oil and non-oil sources declined and the national
budget was only able to achieve approximately 45%
implementation rate. In the external sector of the economy,
export earnings increased at a declining rate by 24.3% to
$76.8bn mainly due to weakness in the oil markets and
lower oil prices. This resulted in a reversal of the trend of
external reserves accretion of the last six years. The external
reserves actually fell to $52.8bn by December 2008 from
$63bn in January 2008. This was because of the need to
use the foreign reserves to support the Naira in the foreign
exchange markets.
The good news is that, the country was able to withstand
the exogenous shocks because of its strong fiscal and
external balances. The policy options available to the
managers of the economy are few but positive. The Central
Bank has confirmed a surprisingly strong growth rate of
5.13% in the second quarter of this year. The non-oil sector
is showing remarkable resilience in spite of the constraints
of dwindling power supply and credit availability. The
banking system, which had hitherto benefited from the
effects of recapitalisation and consolidation, has shown
some signs of weakness, which have been contained by
the CBN's injection of tier 2 capital of =N=420bn into five of
the banks. We are hopeful that credit growth will be restored
to the system so that most companies are in a position to
share in the much-anticipated recovery of the global,
regional and domestic economies.
THE BREWING INDUSTRY
Total beer consumption volume in the country continued to
grow year on year with regional offerings and Ready to
Drink (RTD) products driving the growth. Total malt
consumption also grew significantly leading to Malta
Guinness gaining market ascendancy.
International players in the drinks industry continued to
see Nigeria as an attractive destination with significant
investments in some of the regional breweries in the course
of the year. The industry also witnessed the launch and re-
launch of both old and new brands into the market. This
development led to increased competition in the industry.
Our company has responded to this situation in several
ways. We conducted a trade census validation with a view
to gaining better understanding of the business terrain and
ensuring brilliant execution of all the initiatives on the
company's winning agenda. The insight from this exercise
and resulting action plans resulted in superior distribution,
cold availability and visibility across our portfolio in high
volume retail outlets.
Brand Guinness' sponsorship of the English Premier
League (EPL) across satellite and terrestrial TV kicked off
in August 2008 supported by below the line In-bar
promotions in leading outlets. Guinness Extra Smooth (GES)
continued to exploit the music platform and planning for
the events to commemorate the 250th anniversary of

10
CHAIRMAN’’S STATEMENT
Guinness stout began early in 2009 followed by a
series of activities to celebrate the landmark event.
The strong performance of Harp lager, during the year,
was driven by an impactful quality campaign and
distribution initiative as well as a very successful
National Consumer Promotion (NCP), which have now
made Harp a "must stock brand" in leading outlets.
Malta Guinness became category leader during the
year with the launch of a new product campaign and
the second edition of the "Malta Guinness Street Dance
Africa" competition held in seven regions across the
country. The campaign and the competition created
the platform for the excellent performance of the brand
during the year.
Smirnoff Ice strengthened its position during the year
with the "Smart stuff" thematic campaign while
awareness level for Gordon's Spark was increased with
the 'Thank Gordon's Spark Its Friday' parties.
OUR PERFORMANCE
During the financial year, we sharpened our focus on
the excellent execution of our strategic plans and drove
employee engagement around winning in the market
place. As a result, I am pleased to report that Guinness
Nigeria Plc produced an impressive financial result for
shareholders even in this year of considerable turmoil
in the global and Nigerian economies and increased
competitive activities. Turnover grew year on year by
29% from =N=69.2 billion to =N=89.1 billion while trading
profit increased from =N=15.8bn to =N=19.8bn,
representing a 25% growth over the prior year's
performance.
In recognition of the strong profit and excellent return
on investment and, as a sign of confidence in the future,
the directors have recommended a dividend of 750
kobo per share.
You will recall that in the course of the 2009 financial
year, the Board, in response to your request on the
appropriate use of our growing reserves had
recommended a special dividend payment of =N=10 billion
representing 680 kobo per share. With your approval, this
was paid to all shareholders on 11 July 2008.
UNCLAIMED DIVIDEND
In order to facilitate the effective administration of unclaimed
dividend, I will request all our shareholders to detach and
complete the E-Dividend Mandate Form at the back of the
Annual Report and Financial Statements booklet and return
it to our Registrars either at the venue of this Annual General
Meeting or at their offices as soon as is convenient after the
conclusion of the meeting.
In a similar vein, for ease of administration and to reduce
administration costs, I will ask all our shareholders with
multiple accounts to consolidate them into a single account
and dematerialise their share certificates to enable the
Central Securities Clearing System (CSCS) update its
records of your investments. The Registrars are available
after the AGM and at their offices to offer appropriate
counselling to shareholders on any of these issues.
CORPORATE SOCIAL RESPONSIBILITY
I will like to touch briefly on the role that our company has
been playing as a committed, responsible and caring
corporate citizen. Our community investments are in areas
of deep relevance to the society such as healthcare,
education and provision of water and infrastructural
development in our host communities. New water projects
were completed under the Water of Life programme in
Oregbeni in Benin City, Egbeluowo in Aba, Iperu-Remo,
Olowo in Iju, Lagos, Owode near Ibadan, Ikpayongo near
Makurdi and Odeukwu in Aba serving an aggregate
population of 450, 000 Nigerians. Our support to our host
communities also continued under the Guinness Nigeria
Engineering Scholarship programme and the technical
education sponsorship of indigent students to the Institute
of Industrial Technology, Lagos (IIT). The Guinness Eye
Hospitals in Enugu, Lagos and Kaduna also benefited from
this focus during the year.
The company has also invested on improving infrastructural
facilities in our host communities. In the couse of the year,
we commissioned a modern tarred road with drainage
facilities in the Oregbeni community in Benin City.

INFOMATION
11
As an alcohol beverage company, we recognise that we
have a special responsibility to promote the responsible
use of alcohol. Taken responsibly, alcoholic beverages can
make a positive contribution to the celebration of life
everyday for many people. We recognise however, that
irresponsible consumption of alcohol can have adverse
consequences and we believe that our responsibility is to
continue to promote alcohol education both for our
consumers and for our colleagues who market our products.
The Diageo Marketing Code, developed by our parent
company, Diageo Plc, provide a strict code of practice to
guide all our marketing and advertising activities. Our
Responsible Drinking initiatives during the year included
barmen training and public enlightenment programme on
radio and other media especially during the festive
seasons.
THE BOARD
We are fortunate to have a Board of Directors of the highest
quality and integrity with a good balance of skills and
experience. However, at a time of great challenge in the
global and national economies and an increasingly
competitive industry, the Board is determined to ensure
that it is appropriately prepared to offer direction and
leadership to the business.
We carry out a Board and Directors' performance evaluation
annually and the insights gained from this exercise are
used to strengthen Board processes to ensure we build
and grow a sustainable and competitive business.
OUR PEOPLE
Our employees have remained the driving force and source
of Guinness Nigeria's competitive edge. We have continued
to align business priorities with the aspirations of these
talented people. This has led to the development of an
empowered and responsive workforce.
We have created a work environment, which encourages
innovation, and creativity and have taken appropriate
measures to ensure talent retention and employee
engagement at all levels.
I am confident that we have invested in the right people to
take this company through these difficult times and I would
like to thank all our hardworking people for their
contributions.
THE FUTURE
Although the leading global financial and equity markets
have recently shown signs of recovery, we expect the rest
of 2009 and most of 2010 to be no less challenging for the
economy and the brewing industry than it had been in
2008/9. We have responded, and will continue to respond
appropriately in the light of the fundamental changes in
the economic and operating environments to maximise
shareholder value. We will also continue to maximise
efficiencies in our core business processes and systems
and make additional investments in areas such as
employee training, career development and engagement.
CONCLUSION
In closing, I would like to congratulate our Managing
Director, Mr. D. M. Hainsworth, his executive team and all
our very hardworking employees, for their commitment and
efforts in producing a most commendable result for 2009.
We have in place a very experienced and committed
management team, which bodes well for the future.
In addition, I would like to thank my fellow directors for their
support and commitment to the success of the company.
I must also commend our parent company, Diageo Plc, for
remaining steadfast in its support for Guinness Nigeria
through thick and thin. Without the support we have
received from this long-standing and faithful partner, the
success story we are celebrating today would not have
been realised. We look forward to its continued support for
the future.
Finally, I would like to thank you, our shareholders for your
loyalty and for the confidence you have shown in the Board
and management of Guinness Nigeria Plc.
Thank you and God bless.
Mr. B. A. Savage
Chairman
Signed: 03 September 2009

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The Board of Directors have
pleasure in submitting to
members the Directors’’
Report together with the
financial statements of the
company for the year ended
30 June 2009.
DIRECTORS’’ RESPONSIBILITIES
In accordance with the provisions of Sections 334 and
335 of the Companies and Allied Matters Act [Cap.
C20, Laws of the Federation of Nigeria, 2004], the
company’’s directors are responsible for the
preparation of financial statements which give a true
and fair view of the state of affairs of the company at
the end of the financial period and its results for that
D. M. Hainsworth
Managing Director
period and comply with the Companies and Allied Matters
Act. These responsibilities include ensuring that:
(a) adequate internal control procedures are instituted
to safeguard assets, prevent and detect fraud and
other irregularities;
(b) proper accounting records are maintained;
(c) applicable accounting standards are followed;
DIRECTORS’’ REPORT
FOR THE YEAR ENDED 30 JUNE 2009

INFOMATION
13
(d) suitable accounting policies are used and consistently applied; and
(e) it is appropriate for the financial statements to be prepared on a going concern basis unless it is presumed that
the company will not continue in business.
PRINCIPAL ACTIVITIES
The principal activities of the company continued to be brewing, packaging and marketing of Guinness Foreign Extra
Stout, Guinness Extra Smooth, Malta Guinness, Harp Lager Beer, Gordon’’s Spark, Smirnoff Ice, Satzenbrau and Top Malt.
RESULTS
The following is a summary of the company’’s operating results:
2009 2008
=N=’’000 =N=’’00
Turnover 89,148,207 69,172,852
Trading profit 19,806,485 15,799,575
Interest, net (814,723) 1,293,375
Profit before taxation 18,991,762 17,092,950
Taxation (5,450,573) (5,232,070)
Profit after taxation 13,541,189 11,860,880
Declared dividend (18,879,045) (6,637,165)
DIVIDEND
The directors recommend to the shareholders the declaration of a dividend at this Annual General Meeting of N11,062
million that is 750k per 50k share. This dividend is subject to deduction of withholding tax.
BOARD CHANGES
Since the last Annual General Meeting, Engr. (Dr.) Ralph Alabi has resigned from the Board. Similarly, Mr. B. A. Savage
retired as the Deputy Managing Director of the company and was appointed Chairman. Mr. L. Turnbull has also resigned
from the Board. We wish to thank them for their invaluable contributions to the company during their tenures. To fill the
vacancies created by these resignations, Messrs T. A. Olagunju, K. R. Allan and J. C. A. Anderson were appointed to the
Board. In accordance with the Articles and the provisions of the Companies and Allied Matters Act, Messrs. Olagunju,
Allan and Anderson will retire at the forthcoming Annual General Meeting and, being eligible, hereby offer themselves for
re-election.
The directors to retire by rotation are Messrs. B. A. Savage, N. B. Blazquez, R. C. Plumridge and B. J. Rewane and, being
eligible, hereby offer themselves for re-election.
RECORD OF DIRECTORS’’ ATTENDANCE
The Register showing directors’’ attendance at Board meetings is available for inspection at the Annual General Meeting
as required by Section 258(2) of the Companies and Allied Matters Act.
DIRECTORS AND THEIR INTERESTS
The interests of directors in the issued share capital of the company as recorded in the Register of Members and/or
notified by the directors for the purpose of Section 275 of the Companies and Allied Matters Act and in compliance with
the listing requirements of the Nigerian Stock Exchange are as follows:-
As at 30 As at 03
June 2009 August 2009
No. of shares No of shares
Mr. B. A. Savage 601,263 601,263
Engr. Dr. R. A. Alabi (Resigned with effect from 30/06/09) - -
Dr. N. B. Blazquez Nil Nil
Mr. D. M. Hainsworth Nil Nil
Otunba F. A. Ogunbamowo 49,351 49,351
Prof. J. O. Irukwu 607,866 607,866
Mr. B. E. Gwadah 2,082 2,082
Mr. R. C. Plumridge Nil Nil
Mr. B. J. Rewane 16, 944 16, 944
Mr. F. O. Agbonlahor 7, 665 7, 665
Mrs. I. C. Mafeni Nil Nil
Mr. T. A. Olagunju (Appointed with effect from 07/05/09) Nil Nil
Mr. K. R. Allan (Appointed with effect from 07/05/09) Nil Nil
Mr. J. C. Anderson (Appointed with effect from 17/07/09) 3,765 3,765
Mr. L. Turnbull (Resigned with effect from 17/07/09) - -

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DIRECTORS’’ INTEREST IN CONTRACTS
None of the directors has notified the company for the
purpose of Section 277 of the Companies and Allied
Matters Act of any declarable interest in contracts with
the company.
CORPORATE GOVERNANCE
Guinness Nigeria Plc is guided by its Corporate
Governance Guidelines which are in line with best
practice and the requirements of the Nigerian Stock
Exchange and in compliance with the Code of
Corporate Governance in Nigeria, 2003 (““the
Peterside Code””).
The company complied with the requirements of the
Corporate Governance Guidelines during the year
under review.
BOARD OF DIRECTORS
The Board is responsible for the oversight of the
business, long-term strategy and objectives, and the
oversight of the company’’s risks while evaluating and
directing the implementation of controls and
procedures including, in particular, maintaining a
sound system of internal controls to safeguard
shareholders’’ investments and the company’’s assets.
The Board consists of the Chairman, 8 non-executive
directors and 4 executive directors. The non-executive
directors are independent of management and are
free from any constraints, which may materially affect
the exercise of their judgement as directors of the
company. All directors are selected on the basis of
certain core competencies including experience in
marketing, general operations, strategy, human
resources, technology, media or public relations,
finance or accounting, retail, consumer products,
international business/markets, logistics, product
design, merchandising or experience as a Chief
Executive Officer or Chief Financial Officer. In addition
to having one or more of these core competencies,
candidates for appointment as directors are identified
and considered on the basis of knowledge,
experience, integrity, diversity, leadership, reputation,
and ability to understand the company’’s business.
The positions of the Managing Director and that of the
Chairman of the Board are occupied by different
For the year ended 30 June 2009
persons. The Managing Director is responsible for
implementation of the company’’s business strategy and
the day-to-day management of the business.
There are currently four (4) regularly scheduled Board
meetings during each fiscal year.
Board Committees
The company has the following Board Committees:
General Purposes Committee
This is a Committee comprising all the executive directors
of the company with delegated responsibility for all
businesses, which should be dealt with expeditiously and
are not of such a nature as to necessitate consideration by
a full meeting of the directors. In particular, the Committee
exercises the approval powers vested in the Board of
Directors in the company’’s Schedule of Limits and
Authorities in between meetings of the Board.
Finance and Risk Committee
The Finance and Risk Committee is chaired by Professor J.
O. Irukwu, an insurance and risk expert and former
Managing Director/CEO of Nigeria's pioneer and leading
reinsurance institution, the Nigeria Reinsurance
Corporation. Prof. Irukwu is determined by the Board to be
an independent director. Other members of the Committee
are a human resources expert, a lawyer and an accountant
who may be regarded as a financial expert.
The Finance and Risk Committee is responsible for
monitoring and reviewing:
the integrity of the financial statements, including a
review of the significant financial reporting
judgements contained in them;
the effectiveness of the company's system of risk
management and of control over financial reporting;
the effectiveness of the internal audit unit and the
support provided by Diageo's Global Audit and Risk
function (GAR) including a review of the annual audit
programmes of both the internal audit unit and the
GAR;
the company's overall approach to securing
compliance with laws, regulations and company
policies in areas of risk; and

INFOMATION
15
the company's relationship with the external auditors
including their independence and management's
implementation of audit recommendations.
The Committee met four times during the year and had all
members in attendance at the meetings, except on one
occasion when a member was unable to attend due to
scheduling difficulties. A summary of the Committee's
deliberations is presented to the Board after each meeting.
The Board acknowledges that it is responsible for the
company's systems of internal controls and risk
management and for reviewing their effectiveness and
confirms that, through the Finance and Risk Committee, it
has reviewed their effectiveness in the 2009 financial year.
The following directors served on the Committee during
the year are:
Professor J. O. Irukwu, SAN - Chairman
Otunba F. A. Ogunbamowo
Mr. R. C. Plumridge
Mr. B. E. Gwadah
Nomination and Remuneration Committee
The Nomination and Remuneration Committee is charged
with instituting a transparent procedure for the appointment
of new directors to the Board of Directors and making
recommendations to the Board regarding the tenures and
re-appointment of non-executive directors. The Committee
also has responsibility for matters relating to remuneration
of directors. The Committee comprised the following
members as at the end of the financial year:
Dr. N. B. Blazquez - Chairman
Otunba F. A. Ogunbamowo
Mr. D. M. Hainsworth
Mr. B. A. Savage
Following the appointment of Mr. B. A. Savage as Chairman
of the Board of Directors, he resigned from membership of
the Committee and Mrs. I. C. Mafeni was appointed to
replace him.
Code of Business Conduct
As a subsidiary of Diageo Plc, the company adopted in the
course of 2009, a new Code of Business Conduct (CoBC)
to replace an earlier version, which had been in place for
many years. The CoBC is subscribed to by all members of
the Board of Directors and all employees of the company.
The company mandates strict adherence to the Code by
its employees in its day-to-day operations.
Dealings in Securities Code
The Board has approved a Code on Dealings in Securities
which prescribes codes of behaviour by directors and
senior employees, as well as those in possession of market
sensitive information. Affected persons are prohibited from
dealing in the company’’s securities during closed periods
and mandated to obtain clearance to deal from appropriate
senior executives of the company. The Company Secretary/
Legal Adviser has been designated as the Code Manager
to ensure adherence to the provisions of the Code.
ACQUISITION OF OWN SHARES
The company did not purchase any of its own shares during
the year.
FIXED ASSETS
Information relating to changes in fixed assets is disclosed
in note 9 to the financial statements.
POST BALANCE SHEET EVENTS
There were no post balance sheet events, which could
have had a material effect on the state of affairs of the
company as at the balance sheet date or the profit for the
year then ended, which have not been adequately
provided for.
EMPLOYMENT AND EMPLOYEES
(a) Training and Development
It is our policy to equip all employees with the
skills and knowledge required for successful
performance of their jobs. This entails identifying
the training needs of our employees and
prioritising implementation plans to address such
needs consistent with the requirements of the
business.
(b) Dissemination of Information
In order to maintain a shared perception of our
goals, we are committed to communicating
information to employees in as fast and effective
a manner as possible. We consider this critical to
the maintenance of team spirit and high employee
morale.

16
Circulars and newsletters are published in respect of significant corporate issues. Information is exchanged
by different groups of employees at Joint Consultative Committee meetings. A good communications link
with the workforce is also maintained through regular meetings between Union Representatives and
Management. In order to further facilitate the exchange of information, an in-house journal, ‘‘The Word’’ is
published quarterly featuring contributions from, and about employees of the company.
(c) Employment of Disabled Persons
We do not discriminate against disabled persons in the company.
(d) Health and Safety
All efforts are geared towards providing a safe and conducive working environment for employees. To this
end, there is a written health and safety policy supported by systems and procedures for ensuring that safe
working practices are followed in the performance of all company functions. The company has a Corporate
Safety Manager in place to monitor and guide compliance with safety regulations. In the event of accidents
or ailments occurring at the work place, there are adequate provisions for medical care in our clinics which
are well stocked and competently managed by qualified staff. Furthermore, all employees of the company
are provided free medical care in designated hospitals.
DONATIONS
Water of Life, Benin, Edo State 20,659,578
Water of Life, Egbeluowo, Aba, Abia State 27,158,000
Water of Life, Iju, Lagos State 29,365,200
Water of Life, Iperu-Remo, Ogun State 25,375,200
Water of Life, Ibadan, Oyo State 25,900,400
Water of Life, Odeukwu, Aba, Abia State 26,158,000
Water of Life, Makurdi, Benue State 31,447,000
Water of Life, other communities 399,242
Nigeria Employers’’ Consultative Association (NECA) 406,000
Nigeria Accounting Standards Board (NASB) 200,000
Total 187,068,620
In accordance with Section 38(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.
ROYALTY AND TECHNICAL SERVICES AGREEMENT
It has been the practice of the company to maintain a close relationship with Diageo Plc as technical partner and
adviser. In this capacity, we receive technical and commercial support under a Technical Services Agreement and
Trademark and Quality Control Agreement in respect of Guinness Foreign Extra Stout, Guinness Extra Smooth, Harp
Lager, Malta Guinness, Gordon’’s Spark, Smirnoff Ice and Satzenbrau Pilsner.
AUDIT COMMITTEE
In accordance with Section 359(3) of the Companies and Allied Matters Act, an Audit Committee of the company was
elected at the Annual General Meeting held in Benin City on 28 November 2008. This Committee comprises three
Directors and three shareholders namely Otunba F. A. Ogunbamowo, Mr. B. A. Savage, Mr. B. E. Gwadah, Mr. G. O.
Ibhade, Dr. M. O. Ojinka and Mr. A. N. Ezechukwu.
AUDITORS
KPMG Professional Services have indicated their willingness to continue in office as auditors in accordance with
Section 357(2) of the Companies and Allied Matters Act.
BY ORDER OF THE BOARD
Mr. D. M. Hainsworth
Managing Director
Signed: 03 September 2009

BOARD OF DIRECTORS
MR. BABATUNDE A. SAVAGE -
CHAIRMAN
Mr. Babatunde Savage holds a BSc honours
degree from the University of Ibadan. He had his
accountancy training with Coopers & Lybrand
(now PricewaterhouseCoopers) from 1978 to
1983. Mr. Savage has attended various overseas
management training including a stint at
Cranfield School of Management and Harvard
Business School, Boston. He is a Fellow of both
the Institute of Chartered Accountants of
Nigeria (ICAN) and the Chartered Institute of
Taxation of Nigeria (CITN). He is a Council
member of the International Chamber of
Commerce (ICC) and Nigeria Employers’’
Consultative Association (NECA).
Mr. Savage joined the Board of Guinness Nigeria
Plc in 1996. He was the company’’s Director of
Finance and later Corporate Planning Director.
He was appointed the Corporate Affairs
Director in 1998 and the Deputy Managing
Director in 2005.
Upon his retirement from the company in June
2009, Mr. Savage was appointed Chairman of
the Board of Directors of the Company with
effect from 1st July 2009.
responsibility for the implementation of SAP/
SBM in East Africa and later in Ghana and
Nigeria.
Until his current appointment as the Managing
Director of Guinness Nigeria Plc, he was the
Commercial Projects Director with focus on
key sales and marketing activities for Guinness
Nigeria Plc.
OTUNBA F. A. OGUNBAMOWO
Otunba Ogunbamowo holds a MSc. degree in
Business from the University of Wisconsin. He
retired as Deputy Managing Director of
Cheesebrough Products Industries, a leading
skin care products company.
He was also the Personnel Director of Nigerian
Tobacco Company (NTC) and was posted to
Chelwood Sussex, UK as a member of the
Directing Staff of the BAT International
Management Development Centre. He is a
Fellow of the Chartered Institute of Personnel
Management of Nigeria (CIPN).
He was appointed a non-executive director of
the company in 1995 and is a member of the
company’’s Audit Committee. He is also a
member of the Finance and Risk and the
Nomination and Remuneration Committees of
the Board.
18
DR. NICK BLAZQUEZ -
VICE CHAIRMAN
Dr. Blazquez has a BSc degree from University
of Aberdeen. He has worked in various
capacities throughout Diageo Plc since 1987
and is the Managing Director, Diageo Africa. He
is now on the Diageo Executive Committee.
Dr. Blazquez currently chairs the Board’’s
Nomination and Remuneration Committee.
DEVLIN HAINSWORTH -
MANAGING DIRECTOR/CEO
Devlin Hainsworth, a British citizen born in
Birmingham holds a BA honours degree in
History from the prestigious Cambridge
University.
He joined the IDV Graduate Training
programme and progressed to become Brand
Manager for the Jack Daniel's brand. Prior to
joining Diageo, he spent 9 years in the UK in
marketing roles for 3 FMCG companies -
Smithkline Beecham, HJ Heinz and Dalgety
Spillers gaining experience in drinks, food and
pet food. He has been in employment with
Diageo since 1999 when he was appointed
Managing Director of Guinness Ghana Limited,
a position which he held for 7 years before
moving on to the role of African Business
Systems Transformations Director with
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Mr. Plumridge joined the Board of Guinness
Nigeria Plc as Commercial Director in 2004. In
2007, he was appointed the Finance Director of
Diageo Africa but remained on the Board as a
non-executive director.
Mr. Plumridge is a member of the Finance and
Risk Committee of the Board.
MR. BISMARCK J. REWANE
Mr. Bismarck Rewane graduated from the
University of Ibadan with a Bachelors and
Honours degree in Economics (1972).
He worked at several blue-chip financial
institutions within Nigeria and abroad holding
various senior management positions. Between
1981 and 1989, he was with International
Merchant Bank Nigeria Limited, where he held
such positions as General Manager, Assistant
General Manager, Head of Development
Finance and Divisional and Credit Manager. He
has also worked with the First National Bank of
Chicago, Barclays Bank of Nigeria and Barclays
Bank International Plc, United Kingdom.
An Associate of the Institute of Bankers,
(England & Wales), Rewane has served on the
boards of several organisations, including
Navgas (a Vitol Group subsidiary), NLNG Prize
Award Foundation, UNIC Insurance Plc, Nigeria
Economic Summit Group, UBA Custodian
Limited, Virgin Nigeria Airways Limited, Fidelity
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Bank Plc, First City Monument Bank Plc and
Top Feeds Nigeria Limited.
Mr. Rewane joined the Board of Guinness
Nigeria as a non-executive director in 2008.
FRANCIS AGBONLAHOR -
SUPPLY DIRECTOR
Francis Agbonlahor has a Bachelor of Science
degree in Industrial Chemistry from the
University of Benin, Nigeria, a foundation
certificate from the Institute of Chartered
Accountants of Nigeria (ICAN) and a Master
Brewer's qualification from the Institute of
Brewing and Distilling (IBD), United Kingdom.
Agbonlahor has a wealth of experience that
spans over 17 years in areas such as brewing,
packaging, inventory management, research
and development, integrated demand and
supply planning, project management, business
strategy, customer services and logistics and
brewery management.
He joined Guinness Nigeria in 1990 and has
served in different capacities including Shift
Brewer, Project Brewer, Production Materials
Manager, Brewing Manager, Packaging
Manager, Head of Supply Planning and Head of
Customer Services. He was the Plant Manager
of Guinness Nigeria’’s, Benin Brewery until his
appointment as the Supply Director of the
company in September 2008.
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PROFESSOR J. O. IRUKWU, SAN
Professor J. O. Irukwu, SAN, is a Senior Advocate of
Nigeria, Officer of the Order of the Niger (OON), Fellow of
the Chartered Insurance Institute of Nigeria, past
President of the West African Insurance Companies
Association, President of the Faculty of Risk Management
and Founding President of the Professional Reinsurers’’
Association of Nigeria. He is a Professor of Insurance Law
and holds the National Productivity Order of Merit.
Professor Irukwu joined the Board of Guinness Nigeria Plc
in December 1996. He is the current Chair of the Finance
and Risk Committee of the Board.
MR. BITRUS E. GWADAH
Mr. Bitrus Gwadah has an honours degree in Law and has
been admitted to the Nigerian Bar as a Barrister and
Solicitor. He was Managing Director/CEO, NIDB Trustees
Limited, a subsidiary of Nigerian Industrial Development
Bank Limited.
In addition to being a Director of Guinness Nigeria, he is
also engaged in private legal practice and consultancy.
He joined the Board of Guinness Nigeria in 2000 as a non-
executive director.
Mr. Gwadah represents the Board on the Audit
Committee. He is also a member of the Finance and Risk
Committee of the Board.
MR. RON C. PLUMRIDGE
Mr. Ron Plumridge has an honours degree in Economics
from the University of Exeter and qualified as a chartered
accountant in 1985. He was admitted to fellowship in
1997.
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IFEOMA MAFENI -
HUMAN RESOURCES DIRECTOR
Ifeoma Mafeni holds a Law degree from the
University of Nigeria, Nsukka. She began her HR
career with GlaxoSmithKline in 1994 (then called
SmithKline Beecham) as a Graduate Management
Trainee in Human Resources and held diverse
roles in Human Resources and Legal, before she
resigned in 2002 as Company Secretary/ Head of
Legal.
She joined Accenture where she worked as
Human Resources Lead before joining Guinness
Nigeria. Until her current appointment to the Board
as Human Resources Director, she was the
Director of Human Resources. Prior to that, she
was the Talent Manager in the Human Resources
Function.
MR. TIMOTHY A. OLAGUNJU
Mr. Akinbowale Olagunju graduated from the
University of Ife (now the Obafemi Awolowo
University), with a Bachelors and Honours degree
in Economics (1975) and a Master of Banking and
Finance from the University of Lagos (1995). Mr.
Olagunju is a Fellow of both the Institute of
Chartered Accountants of Nigeria (ICAN) and the
Chartered Institute of Taxation of Nigeria (CITN).
He has worked in several renowned institutions
like Akintola Williams & Co. (now Deloitte) where
he served as an audit trainee and an audit senior
after his professional qualification as a chartered
accountant, Ugochukwu Nwankwo & Co. and the
Financial Institutions Training Centre (FITC), the
pre-eminent institution for training professionals in
the financial services industry. At FITC, Mr.
Olagunju was at different times, Director of Training
and Research, Director of Manpower Development
and Acting Director-General/CEO.
Mr. Olagunju joined the Board of Guinness
Nigeria as a non-executive director in May
2009.
MR. KENNETH ALLAN
Mr. Ken Allan holds a Bachelor of Arts Degree in
Business Administration from the University of
Strathclyde, Glasgow (1981) and started a
remarkable 27-year career in Sales as a Sales
Representative at Golden Wonder Limited. He
subsequently worked for such global players
like Colgate-Palmolive Limited, Smithkline
Beecham, Crookes Healthcare Ltd (UK
subsidiary of BHI), The Boots Company Plc, and
GlaxoSkithkline Plc before joining Diageo in
2004 as Commercial Director, Republic of
Ireland. After a five year stint in Dublin, Allan
joined Diageo Africa in March 2009 as
Commercial Director.
He was appointed to the Board of Guinness
Nigeria Plc in May 2009 as a non-executive
director.
JAMIE ANDERSON -
COMMERCIAL DIRECTOR
Jamie Anderson joined the company in July
2009 from Guinness Cameroon SA (GCSA)
where he had been the Finance Director in the
previous two years.
During his tenure in GCSA, he significantly
transformed the finance function, putting in
place a robust control environment resulting in
satisfactory general audit ratings for each of the
two years he spent in that business. His focus in
GCSA was on ensuring timely and accurate
financial reporting and especially restoring the
confidence of suppliers and partners through
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10 rigorous payment scheduling as well as cash
management. Jamie's focus will be on
strengthening the control environment in the
business as well as further development of the
commercial talent at a time when Guinness
Nigeria continues to build on foundations that
have been laid to win.
SESAN SOBOWALE -
COMPANY SECRETARY/
LEGAL ADVISER
Mr. Sesan Sobowale qualified as a Solicitor and
Advocate of the Supreme Court of Nigeria and
was admitted to the Bar in December 1990. He
has over 18 years of commercial legal
experience in Nigeria’’s leading commercial law
firms including G. M. Ibru & Co., Udo-Udoma &
Bello-Osagie and The Law Union.
Mr. Sobowale is an associate member of the
Chartered Institute of Taxation of Nigeria and the
Institute of Chartered Secretaries and
Administrators (Nigeria and UK).
He was appointed Regulatory Advisor at MTN
Nigeria Communications Limited in August 2004
from where he was appointed as Legal Adviser
in Guinness Nigeria Plc in April 2005. He is a
member of Council of the Institute of Chartered
Secretaries and Administrators of Nigeria
(ICSAN).
Sesan was appointed by the Board as Company
Secretary/Legal Adviser in September 2006.
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GUINNESS LEADERSHIP TEAM
Devlin Hainsworth - Managing Director/CEO
Devlin Hainsworth, a British citizen born in Birmingham holds a BA honours
degree in History from the prestigious Cambridge University.
He joined the IDV Graduate Training programme and progressed to become
Brand Manager for the Jack Daniel's brand. Prior to joining Diageo, he spent 9
years in the UK in marketing roles for 3 FMCG companies - Smithkline Beecham,
HJ Heinz and Dalgety Spillers gaining experience in drinks, food and pet food.
He has been in employment with Diageo since 1999 when he was appointed
Managing Director of Guinness Ghana Limited, a position which he held for 7
years before moving on to the role of African Business Systems Transformations
Director with responsibility for the implementation of SAP/SBM in East Africa and
later in Ghana and Nigeria.
Until his current appointment as the Managing Director of Guinness Nigeria Plc,
he was the Commercial Projects Director with focus on key sales and marketing
activities for Guinness Nigeria Plc.
Francis Agbonlahor - Supply Director
Francis Agbonlahor has a Bachelor of Science degree in Industrial Chemistry
from the University of Benin, Nigeria, a foundation certificate from the Institute of
Chartered Accountants of Nigeria (ICAN) and a Master Brewer's qualification
from the Institute of Brewing and Distilling (IBD), United Kingdom.
Agbonlahor has a wealth of experience that spans over 17 years in areas such
as brewing, packaging, inventory management, research and development,
integrated demand and supply planning, project management, business
strategy, customer services and logistics and brewery management.
He joined Guinness Nigeria in 1990 and has served in different capacities
including Shift Brewer, Project Brewer, Production Materials Manager, Brewing
Manager, Packaging Manager, Head of Supply Planning and Head of Customer
Services. He was the Plant Manager of Guinness Nigeria’’s, Benin Brewery until
his appointment as the Supply Director of the company in September 2008.
Ifeoma Mafeni - Human Resources Director
Ifeoma Mafeni holds a Law degree from the University of Nigeria, Nsukka. She
began her HR career with GlaxoSmithKline in 1994 (then called SmithKline
Beecham) as a Graduate Management Trainee in Human Resources and held
diverse roles in Human Resources and Legal, before she resigned in 2002 as
Company Secretary/ Head of Legal.
She joined Accenture where she worked as Human Resources Lead before
joining Guinness Nigeria. Until her current appointment to the Board as Human
Resources Director, she was the Director of Human Resources. Prior to that, she
was the Talent Manager in the Human Resources Function.
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www.guinness-nigeria.com

Alex Goma - Director of Sales
Before joining the Guinness Nigeria Plc as Director of Sales in 2007, Alex Goma
was the Head of Trade Marketing and Distribution for British American Tobacco
Nigeria (BATN). Prior to joining BATN, Alex worked with several multinationals
including Procter & Gamble and Leventis Stores Nigeria. He has developed
significant expertise in sales and marketing of fast moving consumer goods
across six African countries.
In addition, he has broad skills base gained from experience spanning supply
chain, demand management, operations and strategic planning. He has built
and managed result-oriented, multi-functional teams that have helped to launch
new brands, grow sales volumes, increase market share and enhance overall
profitability.
Karl Hayes - Field Sales Director
Prior to his appointment as Field Sales Director, Karl was the Commercial
Director for Diageo Singapore, Malaysia and Indonesia and has held several
other leadership roles in general management, sales and trade marketing in his
25-year career.
Jamie Anderson - Commercial Director
Jamie Anderson joined the company in July 2009 from Guinness Cameroon SA
(GCSA) where he had been the Finance Director in the previous two years.
During his tenure in GCSA, he significantly transformed the finance function,
putting in place a robust control environment resulting in satisfactory general
audit ratings for each of the two years he spent in that business. His focus in
GCSA was on ensuring timely and accurate financial reporting and especially
restoring the confidence of suppliers and partners through rigorous payment
scheduling as well as cash management. Jamie's focus will be on
strengthening the control environment in the business as well as further
development of the commercial talent at a time when Guinness Nigeria
continues to build on foundations that have been laid to win.
Simon Breckon - Marketing Director
Simon Breckon was appointed to the position of Marketing Director, Guinness
Nigeria in July 2009. Prior to his appointment, Simon had been one of the
pillars responsible for building the Guinness brand in Africa in the past three
years, driving the regional communication and sponsorship programmes.
Simon's functional skills, his commitment to building our talent base and
passion for excellence will be significant factors in delivering our business
goals.
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www.guinness-nigeria.com

24
1 2
3 4
5 6
1 & 2. Stuart Fletcher, President, Diageo International, at the
commissioning of the Water of Life project in Nasarawa State.
3. The Chairman and Managing Director with the Alake of
Egbaland, Oba Adedotun Gbadebo at the launch of another
Water of Life project at Lantoro, Abeokuta.
4. Directors and senior management of the company with the
Benin Monarch, Omo N’’oba Nedo, Oba Erediauwa, shortly before
the 58th Annual General Meeting in Benin City.
5. The Executive Governor of Edo State, Governor Adams
Oshiomhole with directors and senior management of Guinness
Nigeria during a courtesy visit preceding the 58th AGM.
6 & 7. The company’’s former Chairman, Engr. Ralph Alabi, addressing
guests which included the Edo State Governor during the pre-
AGM cocktail in Benin City.
8 & 9. Directors at the 58th Annual General meeting of the company in
Benin City in November 2008.
10. Members of the company’’s Audit Committee during a tour of
the Benin Brewery.
11. The Chairman and the Managing Director with representatives
of the Oba of Benin at the commissioning of a modern tarred
road donated to the Oregbeni community by Guinness Nigeria.
12 & 13. The Guinness Greatness Ambassador, Austin Jay Jay Okocha,
at the new label launch to mark the 250th anniversary of
Guinness Stout.
Corporate Events

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INFOMATION
10

28
REPORT OF
THE AUDIT COMMITTEE
TO THE MEMBERS OF GUINNESS NIGERIA PLC
In compliance with Section 359(6) of the Companies and Allied Matters Act, Cap. C20, Laws of the Federation of
Nigeria 2004, we have carried out the following statutory duties under the Act:
(a) Reviewed the scope and planning of the audit requirements;
(b) Reviewed the external Auditors’’ Memorandum of Recommendations on Accounting Policies and Internal
Controls together with management’’s responses thereon; and
(c) Ascertained that the accounting and reporting policies of the company for the year ended 30 June 2009 are in
accordance with legal requirements and agreed ethical practices.
In our opinion, the scope and planning of the audit for the year ended 30 June 2009 were adequate and management’’s
responses to the Auditors’’ findings were satisfactory.
We aknowledge the co-operation of the Auditors, Messrs KPMG Professional Services (Chartered Accountants),
management and staff of the company in the performance of our statutory duties.
Mr. G. O. Ibhade
Chairman, Audit Committee
Signed: 31 August 2009
Members of the Audit Committee
Mr. G. O. Ibhade - Shareholder/Chairman
Dr. M . A. Ojinka - Shareholder
Mr. A. N. Ezechukwu - Shareholder
Otunba F. A. Ogunbamowo - Director
Mr. B. A. Savage - Director (Resigned with effect from 1st July 2009)
Mr. B. E. Gwadah - Director

INDEPENDENT AUDITOR’’S REPORT
TO THE MEMBERS OF GUINNESS NIGERIA PLC
We have audited the accompanying financial statements
of Guinness Nigeria Plc (““the Company””) which comprise
the balance sheet as at 30 June, 2009, the profit and loss
account, statement of cashflows and value added statement
for the year then ended, the statement of accounting
policies, notes to the financial statements and the five year
financial summary, as set out on pages 28 to 49.
DIRECTORS’’ RESPONSIBILITY FOR THE
FINANCIAL STATEMENTS
The directors are responsible for the preparation and fair
presentation of these financial statements in accordance
with Statements of Accounting Standards applicable in
Nigeria and the manner required by the Companies and
Allied Matters Act of Nigeria. This responsibility includes:
designing, implementing and maintaining internal control
relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether
due to fraud or error; selecting and applying appropriate
accounting policies; and making accounting estimates that
are reasonable in the circumstances.
AUDITOR’’S RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing. Those
standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable
assurance whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial
statements.The procedures selected depend on the
auditor’’s judgment, including the assessment of the risks
of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity’’s
preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity’’s internal
control. An audit also includes evaluating the
appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the
directors, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
OPINION
In our opinion, these financial statements give a true and
fair view of the financial position of Guinness Nigeria Plc
(““the Company””) as at 30 June, 2009 and of the Company’’s
financial performance and cash flows for the year then
ended in accordance with Statements of Accounting
Standards applicable in Nigeria and in the manner
required by the Companies and Allied Matters Act of
Nigeria.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
Compliance with the Requirements of Schedule 6 of the
Companies and Allied Matters Act of Nigeria
In our opinion, proper books of account have been kept by
the company, so far as appears from our examination of
those books and the company’’s balance sheet and profit
and loss account are in agreement with the books of
accounts.
03 September 2009
Lagos, Nigeria
KPMG Professional Services
22a Gerrard Road, Ikoyi
PMB 40014, Falomo
Lagos, Nigeria
Telephone 234 (1) 271 8955
Fax 234 (1) 462 0704
Internet www.ng.kpmg.com
KPMG Professional Services, a Partnership established under
Nigerian law, is a member of KPMG International, a Swiss
Cooperative. All rights reserved.
Registered in Nigeria No BN 986925
Abayomi D. Sanni Adebisi O. Lamikanra Adekunle A. Elebute
Adetola P. Adeyemi Adewale K. Ajayi Ayodele H. Othihiwa
Chibuzor N. Anyanechi Goodluck C. Obi Joseph O. Tegbe
Oladapo R. Okubadejo Oladimeji I. Salaudeen Olumide O. Olayinka
Oluseyi T. Bickersteth Victor U. Onyenkpa

30
A summary of the principal accounting policies, all of which have been consistently applied throughout the current and preceding
years, is set out below:
(A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements are prepared under the historical cost convention as modified by the revaluation of certain
properties, plant and machinery at depreciated replacement cost.
(B) TURNOVER
Turnover represents the value of beer, ready-to-drink and malt beverages despatched to third parties inclusive of excise
duty thereon but exclusive of VAT and net of trade discounts and volume rebates.
(C) FIXED ASSETS
i. Fixed assets are stated at cost or valuation less accumulated depreciation. Cost includes expenditure that is directly
attributable to the acquisition of the asset.
ii. The costs of the day-to-day servicing of fixed assets are recognized in the profit and loss account as incurred.
iii. On disposal of previously revalued fixed assets, an amount equal to the revaluation surplus attributable to that asset
is transferred from revaluation reserve to revenue reserve.
iv. Fixed assets being constructed or developed for future use are disclosed as assets in progress.
v. Gains or losses on the disposal of fixed assets are determined by reference to their carrying values and are
included in the profit and loss account.
(D) DEPRECIATION OF FIXED ASSETS
Depreciation is calculated to write off the cost or valuation of fixed assets on a straight-line basis over the expected useful
lives of the assets concerned. The principal annual rates used for this purposes are:
Leasehold land and buildings - 2% or period of lease, whichever is lower
Plant and machinery
- Heavy - 5%
- Light - 10%
- Chillers and Generators - 33.33%
Furniture and equipment - 20%
Motor vehicles
- Others - 25%
- Sales - 33.33%
Assets in progress are not depreciated until they are availalble for use. The attributable cost of each asset is transferred
to the relevant asset category immediately the asset is available for use and depreciated accordingly.
(E) INTANGIBLE ASSETS
Intangible assets that are acquired by the company and have finite useful lives are measured at cost less accumulated
amortisation and impairment losses. Subsequent expenditure is capitalised only when it increases the future economic
benefits embodied in the specific asset to which it relates.
Amortisation is calculated over the cost of the asset less its residual value. Amortisation is recognised in profit and loss
account on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available
for use.
The estimated useful lives for intangible assets are as follows:
- Computer Software - SAP 5 years
- Computer Software- Others 3 years
STATEMENT OF
ACCOUNTING POLICIES

INFOMATION
31
(F) STOCKS
Stock are valued at the lower of cost and net realisable value and are stated net of allowances for obsolete, slow moving or
defective items, where appropriate. Cost incurred in bringing each stock item to its present location and condition is derived
as follows:
i. Raw materials, packaging materials - Purchase Costs on a weighted average basis, including
(excluding bottles and crates) transportation and applicable handling charges.
and engineering spares
ii. Bottled beer and beer in process - Average cost of direct materials and labour plus the appropriate
amount attributable to production overheads based on normal
production capacity.
iii. Stock in transit - Purchase cost incurred to date.
The net realisable value of bottles and crates is deemed to be their prevailing deposit value. Gains or losses arising from a
change in the valuation of bottles and crates (principally as a result of changes in the deposit value which are below cost) are
taken to the profit and loss account. Bottles and crates of a design/product yet to be introduced into the market are valued
at cost. After introduction into the market, all bottles and crates are carried at their deposit value.
(G) DEBTORS
Debtors are stated after deduction of allowances for any debts considered bad or doubtful of recovery. Sale of debtor
balances to third parties is recorded as a reduction to the debtor balance when there is no recourse to the company. Gains
or Losses on the sale of debtor balances are recorded in the profit and loss account as part of interest.
(H) PROVISIONS
A provision is recognized only if, as a result of a past event, the company has a present legal or constructive obligation that
can be reliably estimated, and it is probable that a transfer of economic benefits will be required to settle the obligation.
i. Restructuring
A provision for restructuring is recognised when the company has approved a detailed and formal restructuring plan
and the restructuring has either commenced or has been publicly announced. Future operating losses associated with
restructuring plans are not provided for.
ii. Onerous Contracts
A provision for onerous contracts is recognised when the expected benefits to be derived by the company from a
contract are lower than the unavoidable cost of meeting its obligation under the contract. The provision is measured at
the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing
with the contract. Before a provision is established, the company recognises any impairment loss on the assets associated
with that contract.
(I) FOREIGN CURRENCIES
Transactions denominated in foreign currencies are translated into Naira and recorded at the exchange rates ruling on the
date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into Naira at the
rates of exchange ruling at the balance sheet date or where appropriate, at the contracted rate of exchange if the balance
is to be settled at a contracted rate. Any gain or loss arising from a change in exchange rates, subsequent to the date of
transactions, is included as an exchange gain or loss in the profit and loss account.
(J) EMPLOYEES BENEFITS
i. Pension:
In line with the provision of the Pension Reform Act 2004, the company has instituted a defined contribution pension
scheme for its management and non-management staff. Staff contributions to the schemes are funded through payroll
deductions while the company’’s contribution is charged to the profit and loss account.

32
ii. Gratuity:
(a). Defined Benefit Scheme
Lump-sum benefits payable upon retirement or resignation of employment are fully accrued over the service
lives of management and non-management staff of the company. Independent actuarial valuations are performed
periodically on a projected benefit obligation basis. Actuarial gains or losses and curtailment gains or losses
arising from valuations are charged in full to the profit and loss account. The company ensures that adequate
arrangements are in place to meet its obligation under the scheme.
(b). Defined Contribution Scheme
The company has a defined contribution gratuity scheme for certain employees, which is planned to be
funded. Under this scheme, a specified amount is contributed by the company and charged to the profit and
loss account over the service life of the employees.
iii. Other Long Term Employee Benefits
These are Long Service Awards payable upon completion of certain years in service and accrued over the service
lives of the employees. The charge to the profit and loss account is based on independent actuarial valuation
performed using the projected unit credit method.
Actuarial gains or losses arising from the valuation are charged in full to the profit and loss account.
(K) TAXATION
Tax expenses/credits are recognised in the profit and loss account.
Income tax is the expected amount of income tax payable on taxable profit for the year determined in accordance with
the Companies Income Tax Act (CITA) using statutory tax rates at the balance sheet date and any adjustment to tax
payable in respect of previous years.
Education tax is assessed at 2% of assesable profits while capital gains tax is assessed at 10%, where applicable, of the
capital gain.
(L) DEFERRED TAXATION
Deferred taxation, which arises from differences in the timing of recognition of items in the accounts and by tax
authorities, is calculated using the liability method. Deferred tax is provided on all timing differences at the rates of tax
likely to be in force at the time of reversal.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the assets can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the
related tax benefit will be realized. Deferred tax is charged to the profit and loss account except to the extent that it
relates to a transaction that is recognised directly in equity.
(M) LEASES
i. Operating leases:
Lease rental income/expense is recognised in the profit and loss account on a systematic basis in line with the time
pattern of the benefit provided/received by the company.
ii. Finance leases:
Where the company is the lessor, the company recognises simultaneously in its books the gross investments in the
lease and the unearned finance income from the lease at their fair value at the inception of the lease. Where it is not
possible to determine the fair value, they are carried at the present value of minimum lease payments at the
inception of the lease. Unearned finance income is deferred and allocated to the profit and loss account over the
lease term based on a pattern reflecting a constant periodic rate of return on the outstanding net investment.
STATEMENT OF ACCOUNTING POLICIES

INFOMATION
33
(N) IMPAIRMENT
The carrying value of the company’’s assets are reviewed at each balance sheet date to determine whether there is any
indication of impairment. If any such indications exist, the asset’’s recoverable amount is estimated. An impairment loss is
recognised whenever the carrying value of an asset exceeds its recoverable amount. Impairment losses are recognised in
the profit and loss account.
(O) REVALUATION RESERVE
Surpluses/(deficits) arising on the revaluation of fixed assets are (credited)/debited to a non-distributable reserve known as
the fixed assets revaluation reserve. Revaluation deficits in excess of the amount of prior revaluation surpluses on the same
assets are charged to the profit and loss account.
On disposal of previously revalued fixed assets, an amount equal to the revaluation surplus attributable to that asset is
transferred from the revaluation reserve to general reserve.
(P) CASH AND CASH EQUIVALENTS
For the purpose of reporting cash flows, cash and cash equivalents include cash and bank balances and short-term deposits
with original maturities of three months or less.
(Q) UNCLAIMED DIVIDENDS
Unclaimed dividends are amounts payable to shareholders in respect of dividends previously declared which have remained
unclaimed by the shareholder. In compliance with section 385 of the Companies and Allied Matters Act, unclaimed dividends
after twelve (12) years are transferred to general reserves.
(R) GOVERNMENT GRANT
Export expansion grants which compensate the company for expenses incurred in making exports are recognized when
there is reasonable assurance that they will be received and the company will comply with the conditions associated with the
grant.
(S) SEGMENT REPORTING
A segment is a distinguishable component of the company that is engaged either in providing related products or services
(business segment), or in providing products or services within a particular economic environment (geographical segment),
which is subject to risks and returns that are different from those of other segments. Segment information is required to be
presented in respect of the company’’s business and geographical segments, where applicable.
The company’’s primary format for segment reporting is based on business segments. The business segments are determined
by management based on the company’’s internal reporting structure.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated
on a reasonable basis.

34
NotesNotesNotesNotesNotes 20092009200920092009 20082008200820082008
=====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000
TURNOVERTURNOVERTURNOVERTURNOVERTURNOVER 1 89,148,207 69,172,852
Cost of sales (46,509,596) (35,611,016)
GROSS PROFITGROSS PROFITGROSS PROFITGROSS PROFITGROSS PROFIT 42,638,61142,638,61142,638,61142,638,61142,638,611 33,561,83633,561,83633,561,83633,561,83633,561,836
Advertising and Promotion Expenses (7,795,558) (6,163,742)
Distribution Expenses (5,966,268) (5,066,087)
Administrative Expenses (8,034,198) (5,448,662)
Other Income 2 226,665 159,068
Exceptional Item 3 (1,262,767) (1,242,838)
TRADING PROFITTRADING PROFITTRADING PROFITTRADING PROFITTRADING PROFIT 1 19,806,48519,806,48519,806,48519,806,48519,806,485 15,799,57515,799,57515,799,57515,799,57515,799,575
Interest Income 4(b) 1,211,538 1,730,080
Interest Expense 4(c) (2,026,261) (436,705)
PROFIT BEFORE TAXATIONPROFIT BEFORE TAXATIONPROFIT BEFORE TAXATIONPROFIT BEFORE TAXATIONPROFIT BEFORE TAXATION 4(a) 18,991,76218,991,76218,991,76218,991,76218,991,762 17,092,95017,092,95017,092,95017,092,95017,092,950
Taxation 6(a) (5,450,573) (5,232,070)
PROFIT AFTER TAXATIONPROFIT AFTER TAXATIONPROFIT AFTER TAXATIONPROFIT AFTER TAXATIONPROFIT AFTER TAXATION 13,541,18913,541,18913,541,18913,541,18913,541,189 11,860,88011,860,88011,860,88011,860,88011,860,880
APPROPRIATION:APPROPRIATION:APPROPRIATION:APPROPRIATION:APPROPRIATION:
Transferred to general reserve 21 13,541,189 11,860,880
Earnings per share (kobo) 8 918 804
Declared Dividend per share (kobo) 8 1,280 450
The Directors propose a final dividend of 750 kobo per share (2008:600 kobo per share) on the issued share capital of
1,474,925,519 ordinary shares of 50 kobo each subject to approval by the shareholders at the next Annual General Meeting.
The accounting policies on pages 28 to 31 and the notes on pages 35 to 47 form an integral part of these financial statements.
PROFIT AND LOSS ACCOUNT

INFOMATION
35
BALANCE SHEET
As at 30 June 2009
=====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000
NON CURRENT ASSETSNON CURRENT ASSETSNON CURRENT ASSETSNON CURRENT ASSETSNON CURRENT ASSETS
Fixed Assets 9(a) 35,897,959 36,733,310
Intangible Assets 10 1,806,834 1,311,466
Long Term Debtors and Prepayments 11 399,293 533,823
TOTAL NON CURRENT ASSETSTOTAL NON CURRENT ASSETSTOTAL NON CURRENT ASSETSTOTAL NON CURRENT ASSETSTOTAL NON CURRENT ASSETS 38,104,08638,104,08638,104,08638,104,08638,104,086 38,578,59938,578,59938,578,59938,578,59938,578,599
CURRENT ASSETSCURRENT ASSETSCURRENT ASSETSCURRENT ASSETSCURRENT ASSETS
Stocks 12 16,847,699 12,867,442
Debtors and Prepayments 13 9,104,844 6,528,920
Deposits for Imports 3,991,114 108,256
Cash and Bank Balances 14 5,820,994 15,107,980
TOTAL CURRENT ASSETSTOTAL CURRENT ASSETSTOTAL CURRENT ASSETSTOTAL CURRENT ASSETSTOTAL CURRENT ASSETS 35,764,65135,764,65135,764,65135,764,65135,764,651 34,612,59834,612,59834,612,59834,612,59834,612,598
CURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIES
Creditors and Accruals 15 (17,957,642) (15,368,671)
Taxation 6(b) (5,492,788) (3,981,048)
Dividend Payable 7(b) (794,294) (798,338)
Bank Overdraft 18 (6,897,234) (3,705,076)
NET CURRENT ASSETSNET CURRENT ASSETSNET CURRENT ASSETSNET CURRENT ASSETSNET CURRENT ASSETS 4,622,693 10,759,465
TOTAL ASSETS LESS CURRENT LIABILITIESTOTAL ASSETS LESS CURRENT LIABILITIESTOTAL ASSETS LESS CURRENT LIABILITIESTOTAL ASSETS LESS CURRENT LIABILITIESTOTAL ASSETS LESS CURRENT LIABILITIES 42,726,77942,726,77942,726,77942,726,77942,726,779 49,338,06449,338,06449,338,06449,338,06449,338,064
NON CURRENT LIABILITIESNON CURRENT LIABILITIESNON CURRENT LIABILITIESNON CURRENT LIABILITIESNON CURRENT LIABILITIES
Deferred Tax Liability 16 (8,093,952) (7,886,464)
Provision for gratuity and other
long term employee benefits 17 (3,108,126) (4,589,043)
NET ASSETSNET ASSETSNET ASSETSNET ASSETSNET ASSETS 31,524,70131,524,70131,524,70131,524,70131,524,701 36,862,55736,862,55736,862,55736,862,55736,862,557
CAPITAL AND RESERVESCAPITAL AND RESERVESCAPITAL AND RESERVESCAPITAL AND RESERVESCAPITAL AND RESERVES
Share Capital 19(b) 737,463 737,463
Share Premium Account 1,545,787 1,545,787
Revaluation Reserve 20 3,303,146 3,737,615
General Reserve 21 25,938,305 30,841,692
TOTAL EQUITYTOTAL EQUITYTOTAL EQUITYTOTAL EQUITYTOTAL EQUITY (Shareholders’’ Funds)(Shareholders’’ Funds)(Shareholders’’ Funds)(Shareholders’’ Funds)(Shareholders’’ Funds) 31,524,70131,524,70131,524,70131,524,70131,524,701 36,862,55736,862,55736,862,55736,862,55736,862,557
SIGNED ON BEHALF OF THE BOARD OF DIRECTORS BY:
MR. D. M. HAINSWORTH )
) Directors
)
MR. J. C. A. ANDERSON )
Approved by the Board of Directors on 03 September 2009.
The accounting policies on pages 28 to 31 and the notes on pages 35 to 47 form an integral part of these financial statements.

36
STATEMENT OF CASH FLOWS
=====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000
Cash Flows from Operating ActivitiesCash Flows from Operating ActivitiesCash Flows from Operating ActivitiesCash Flows from Operating ActivitiesCash Flows from Operating Activities
Trading Profit 19,806,485 15,799,575
Adjusted for:
Depreciation of fixed assets 9 3,565,316 3,109,953
Write-off of fixed assets 4(a) 728,036 377,574
Amortisation of intangible assets 10 211,000 16,001
Gain on disposal of fixed assets (5,095) (201,424)
Curtailment gain on change in gratuity scheme 17(a) (2,031,796) -
Curtailment loss arising from restructuring exercise 17(a) 188,231 -
Provision for gratuity 17(a) 1,324,299 796,229
Provision for long service awards 17(b) 225,363 206,310
Decrease/(Increase) in long term debtors and prepayments 134,530 (10,789)
Stock related exceptional items not involving movement of cash 12(a) - 1,090,066
24,146,369 21,183,495
Trading Profit before Working Capital Changes
Working capital changes:
Increase in stocks 12(a) (3,980,257) (1,236,610)
Increase in debtors and prepayment (2,529,874) 327,117
Increase in deposits for imports (3,882,858) (82,181)
Increase in creditors and accruals 2,446,709 (376,667)
16,200,089 19,815,154
Gratuity paid 17(a) (1,133,957) (154,214)
Long Service Awards paid 17(b) (53,057) (37,451)
Tax paid 6(b) (3,731,345) (5,031,846)
Net cash provided by operating activitiesNet cash provided by operating activitiesNet cash provided by operating activitiesNet cash provided by operating activitiesNet cash provided by operating activities 11,281,73011,281,73011,281,73011,281,73011,281,730 14,591,64314,591,64314,591,64314,591,64314,591,643
Cash Flows from Investing ActivitiesCash Flows from Investing ActivitiesCash Flows from Investing ActivitiesCash Flows from Investing ActivitiesCash Flows from Investing Activities
Interest received 1,134,643 1,565,599
Purchase of fixed assets 9 (3,378,378) (10,192,295)
Acquisition of intangible assets 10 (706,368) (1,290,358)
Proceeds from sale of fixed assets 67,734 260,620
Proceeds from finance lease receivable 30,845 38,541
Net cash used in investing activitiesNet cash used in investing activitiesNet cash used in investing activitiesNet cash used in investing activitiesNet cash used in investing activities (2,851,524)(2,851,524)(2,851,524)(2,851,524)(2,851,524) (9,617,893)(9,617,893)(9,617,893)(9,617,893)(9,617,893)
Cash Flows from Financing ActivitiesCash Flows from Financing ActivitiesCash Flows from Financing ActivitiesCash Flows from Financing ActivitiesCash Flows from Financing Activities
Interest paid 4(c) (2,026,261) (436,705)
Dividend paid 7(b) (18,883,089) (6,641,292)
Proceed from Term Loan 2,507,371 -
Term Loan paid (2,507,371) (8,500,000)
Increase in bank overdraft 3,192,158 3,705,076
Net cash used in financing activitiesNet cash used in financing activitiesNet cash used in financing activitiesNet cash used in financing activitiesNet cash used in financing activities (17,717,192)(17,717,192)(17,717,192)(17,717,192)(17,717,192) (11,872,921)(11,872,921)(11,872,921)(11,872,921)(11,872,921)
Net decrease in cash and cash equivalents (9,286,986) (6,899,171)
Cash and cash equivalents, beginning of year 15,107,980 22,007,151
Cash and cash equivalents, end of year 5,820,994 15,107,980
Cash and Cash EquivalentsCash and Cash EquivalentsCash and Cash EquivalentsCash and Cash EquivalentsCash and Cash Equivalents
This comprises:
Cash at Bank and in Hand 2,915,346 762,211
Short-term deposits with Banks 2,905,648 14,345,769
5,820,994 15,107,980
The accounting policies on pages 28 to 31 and the notes on pages 35 to 47 form part of these financial statements.

INFOMATION
37
1. ANALYSIS OF TURNOVER AND TRADING PROFIT
The analysis of turnover and profit by geographical area is as follows:
TTTTTurnoverurnoverurnoverurnoverurnover TTTTTrading Profitrading Profitrading Profitrading Profitrading Profit
20092009200920092009 20082008200820082008 20092009200920092009 20082008200820082008
NNNNN======’’000=’’000=’’000=’’000=’’000 NNNNN======’’000=’’000=’’000=’’000=’’000 NNNNN======’’000=’’000=’’000=’’000=’’000 NNNNN======’’000=’’000=’’000=’’000=’’000
Nigeria 88,339,610 68,208,158 19,276,453 15,529,653
Export 808,597 964,694 530,032 269,922
89,148,207 69,172,852 19,806,485 15,799,575
2. OTHER INCOME
Other Income comprises:
20092009200920092009 20082008200820082008
NNNNN======’’000=’’000=’’000=’’000=’’000 NNNNN======’’000=’’000=’’000=’’000=’’000
Operating lease income 226,335 149,832
Sundry income 330 9,236
226,665 159,068
3. EXCEPTIONAL ITEM
This amount comprises:
20092009200920092009 20082008200820082008
NNNNN======’’000=’’000=’’000=’’000=’’000 NNNNN======’’000=’’000=’’000=’’000=’’000
Employee related restructuring costs (Note (a)) 534,731 -
Write off of fixed assets - Restructuring costs (Note (b)) 728,036 -
Write off of old Malta bottles and crates (Note (c)) - 1,242,838
1,262,767 1,242,838
(a) Employee related restructuring costs include termination benefits paid amounting to N346.5 million and curtailment
losses on their gratuity entitlments amounting to 188.2 million.
(b) Write off of fixed assets - Restructuring costs - relates to impairment losses arising from the write off of the net
book value of certain fixed assets as part of a restructuring programme.
(c) Write off of old Malta bottles and crates represents costs associated with the launch of new Malta Guinness bottles
and crates. It principally comprises the cost of writing off old bottles and crates, writing down the cost of new
bottles and crates issued to production to their deposit values and income accruing from the disposal of old
bottles and crates.
NOTES TO
THE FINANCIAL STATEMENTS

38
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
4. PROFIT BEFORE TAXATION
20092009200920092009 20082008200820082008
NNNNN======’’000=’’000=’’000=’’000=’’000 NNNNN======’’000=’’000=’’000=’’000=’’000
(a) Profit before taxation is arrived at after charging/(crediting):
Staff costs (Note 5(a)) 7,317,750 5,470,571
Directors' emoluments (Note 5(d)) 92,619 69,972
Auditor's remuneration 21,965 19,100
Depreciation of fixed assets 3,565,316 3,109,953
Amortisation of intangible assets 211,000 16,001
Write-off of fixed assets 728,036 377,574
Actuarial loss 696,975 36,791
Royalties, Technical Service and Management Fees (Note 24) 3,859,942 1,659,122
Gain on disposal of fixed assets (5,095) (201,424)
Loss/ (gain) on foreign exchange transactions, net 1,777,377 (48,757)
Curtailment gain on gratuity scheme (Note 17(a)) (2,031,796) -
Curtailment loss arising from restructuring exercise (Note 17(a)) 188,231 -
(b) Interest income comprises:
20092009200920092009 20082008200820082008
NNNNN======’’000=’’000=’’000=’’000=’’000 NNNNN======’’000=’’000=’’000=’’000=’’000
- Interest from short-term deposits 952,354 1,668,309
- Interest from finance lease 13,115 4,590
- Other interest income 246,069 57,181
1,211,538 1,730,080
(c) Interest expense comprises:
20092009200920092009 20082008200820082008
NNNNN======’’000=’’000=’’000=’’000=’’000 NNNNN======’’000=’’000=’’000=’’000=’’000
- Interest on term loans (23,267) (304,025)
- Interest on overdraft (1,623,085) (132,680)
- Other interest expense (379,909) -
(2,026,261) (436,705)

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39
5. STAFF COSTS AND DIRECTORS’’ EMOLUMENTS
20092009200920092009 20082008200820082008
NNNNN======’’000=’’000=’’000=’’000=’’000 NNNNN======’’000=’’000=’’000=’’000=’’000
(a) Staff costs
- Salaries, wages and allowances 5,274,008 4,231,888
- Pension fund contribution 282,727 236,144
- Current year gratuity charge (Note 17(a)) 1,324,299 796,229
- Defined contribution charge (Note 15 and 17(a)) 211,353 -
- Long service award (Note 17 (b)) 225,363 206,310
7,317,750 5,470,571
(b) Average number of employees
20092009200920092009 20082008200820082008
NumberNumberNumberNumberNumber NumberNumberNumberNumberNumber
Average number employed 1,170 1,166
Operations and Technical 700 710
Sales and Distribution 304 293
Commercial 84 78
Corporate Affairs and Human Resources 60 64
Marketing 22 21
1,170 1,166
(c) The number of employees of the company who earned over N==350,000 (excluding pension cost and certain
benefits) in the period fell within the bands stated below:
20092009200920092009 20082008200820082008
=N=350,000 - =N=450,000 2 83
=N=450,001 - =N=550,000 18 126
=N=550,001 - =N=650,000 110 167
=N=650,001 - =N=750,000 120 117
=N=750,001 - =N=850,000 146 162
=N=850,001 - =N=950,000 84 91
=N=950,001 - =N=1,050,000 112 60
=N=1,050,001 - =N=1,150,000 82 40
=N=1,150,001 - =N=1,250,000 75 45
=N=1,250,001 - =N=1,350,000 35 25
=N=1,350,001 - =N=1,450,000 37 35
=N=1,450,001 - =N=1,550,000 21 18
=N=1,550,001 - =N=1,650,000 24 17
=N=1,650,001 - =N=1,750,000 31 13
=N=1,750,001 - =N=2,000,000 40 27
=N=2,000,001 - =N=2,250,000 21 26
=N=2,250,001 - =N=3,000,000 57 48
=N=3,000,001 and above 95 83

40
20092009200920092009 20082008200820082008
NNNNN======’’000=’’000=’’000=’’000=’’000 NNNNN======’’000=’’000=’’000=’’000=’’000
(d) Emoluments of directors of the company who
discharged their duties wholly or mainly in Nigeria
Fees paid to non-executive directors 3,657 3,623
Fees and emoluments paid to the Chairman 3,662 3,287
Emoluments paid to executive directors 85,300 63,062
92,619 69,972
The emoluments (excluding pension contributions)
of the highest paid director amounted to 37,810 30,492
Remuneration paid to the directors of the company (excluding the Chairman and pension contributions) fell within the bands
shown below:
20092009200920092009 20082008200820082008
=====NNNNN===== =====NNNNN=====
1 - 100,000 - 1
200,001 - 1,000,000 4 7
1,000,001 - 2,000,000 1 -
4,000,001 - 5,000,000 1 2
5,000,001 - 6,000,000 1 1
10,000,001 - 30,000,000 3 2
10 13

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41
6. TAXATION
20092009200920092009 20082008200820082008
=====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000
(a) Tax charge (per profit and loss account)
Income tax 4,828,223 3,559,637
Education tax 414,862 425,752
Deferred tax (Note 16) 207,488 1,239,689
Capital gains tax - 6,992
5,450,573 5,232,070
20092009200920092009 20082008200820082008
NNNNN======’’000=’’000=’’000=’’000=’’000 NNNNN======’’000=’’000=’’000=’’000=’’000
(b) Tax liability (per balance sheet)
Balance, beginning of year 3,981,048 5,020,513
Charge for the year 5,243,085 3,992,381
Payment during the year (3,731,345) (5,031,846)
Balance, end of year 5,492,788 3,981,048

42
7. DIVIDEND
20092009200920092009 20082008200820082008
=====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000
(a) Charge for the year:
Ordinary dividend declared 8,849,553 6,637,165
Special dividend declared 10,029,492 -
Declared dividend (Note 21) 18,879,045 6,637,165
Dividend declared comprises:
(i) Ordinary dividend declared at the last Annual General Meeting held on November 28, 2008 amounting to N8,849
million in respect of the 2008 financial year (2007 financial year: N6,637 million).
(ii) Special dividend declared at the Extraordinary General Meeting held on 10 July 2008 amounting to N10,029 million
in respect of the 2008 financial year (2007 financial year: Nil).
Subject to approval by the shareholders at the next Annual General Meeting, the directors propose an ordinary
dividend of 750 kobo per share (2008: 600 kobo per share) on the issued share capital of 1,474,925,519 ordinary
shares of 50 kobo each being the number of ordinary shares in issue and ranking for dividend.
20092009200920092009 20082008200820082008
=====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000
(b) Per balance sheet:
Balance, beginning of year 798,338 802,465
Declared dividend (Note (a)) 18,879,045 6,637,165
Payments during the year (18,883,089) (6,641,292)
Balance, end of year 794,294 798,338
(c) Dividend payable of =N= 794 million (2008: =N=798 million) was included in short term deposits with banks at the year end
(Note 14(a)). Unclaimed dividends (numbers 74 to 79) amounting to N3,127 million (2008: =N=1,574 million) was also
held by the registrars at the year end.
8. EARNINGS AND DECLARED DIVIDEND PER SHARE
Earnings and declared dividend per share are based on the company’’s profit after taxation of =N=13,541,189,000 (2008:
=N=11,860,880,000) and declared dividends of N18,879,045,000 (2008: =N=6,637,165,000) respectively and on
1,474,925,519 (2008: 1,474,925,519) ordinary shares of 50 kobo each, being the average number of ordinary shares
in issue and ranking for dividend.

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43
9. FIXED ASSETS
(a) The movement on these accounts during the year was as follows:
LeaseholdLeaseholdLeaseholdLeaseholdLeasehold
Land andLand andLand andLand andLand and Plant andPlant andPlant andPlant andPlant and Furniture &Furniture &Furniture &Furniture &Furniture & MotorMotorMotorMotorMotor Assets inAssets inAssets inAssets inAssets in
BuildingsBuildingsBuildingsBuildingsBuildings MachineryMachineryMachineryMachineryMachinery EquipmentEquipmentEquipmentEquipmentEquipment VehiclesVehiclesVehiclesVehiclesVehicles ProgressProgressProgressProgressProgress TTTTTotalotalotalotalotal
=====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000
Cost or ValuationCost or ValuationCost or ValuationCost or ValuationCost or Valuation:
At 1st July 2008 6,899,985 31,136,601 2,726,517 3,415,799 7,921,559 52,100,461
Additions 854 78,191 103,645 427,203 2,910,747 3,520,640
Transfers 1,525,812 4,287,134 81,097 345,085 (6,239,128) -
Disposals - (267,453) (26,224) (280,766) - (574,443)
Write-off - (1,294,806) (3,554) - - (1,298,360)
At 30 June 2009 8,426,651 33,939,667 2,881,481 3,907,321 4,593,178 53,748,298
DepreciationDepreciationDepreciationDepreciationDepreciation:
At 1st July 2008 964,449 10,815,964 1,499,706 2,087,032 - 15,367,151
Charge for the year 137,112 2,406,463 264,475 757,266 - 3,565,316
Disposals - (225,499) (26,224) (260,081) - (511,804)
Write-off - (568,053) (2,271) - - (570,324)
At 30 June 2009 1,101,561 12,428,875 1,735,686 2,584,217 - 17,850,339)
Net Book ValueNet Book ValueNet Book ValueNet Book ValueNet Book Value
At 30 June 2009 7,325,090 21,510,792 1,145,795 1,323,104 4,593,178 35,897,959
At 30 June 2008 5,935,536 20,320,637 1,226,811 1,328,767 7,921,559 36,733,310
(b) Certain leasehold land and buildings, plant and machinery were revalued on 2 January 1997 by Messrs Knight Frank (Nigeria) -
Chartered Surveyors, on the basis of their depreciated replacement cost. The values were incorporated in the books at that date
and the surplus that arose on the revaluation was credited to fixed assets revaluation reserve. All subsequent additions are stated
at cost. Fixed assets are revalued periodically as dictated by prevailing economic conditions. The Net Book Value of revalued
assets included in the above was as follows:
LeaseholdLeaseholdLeaseholdLeaseholdLeasehold
Land andLand andLand andLand andLand and Plant andPlant andPlant andPlant andPlant and Furniture &Furniture &Furniture &Furniture &Furniture & MotorMotorMotorMotorMotor Assets inAssets inAssets inAssets inAssets in
BuildingsBuildingsBuildingsBuildingsBuildings MachineryMachineryMachineryMachineryMachinery EquipmentEquipmentEquipmentEquipmentEquipment VehiclesVehiclesVehiclesVehiclesVehicles ProgressProgressProgressProgressProgress TTTTTotalotalotalotalotal
=====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000
Net Book Value of revalued
assets at 30 June 2009 1,292,292 931,344 - - - 2,223,636
Net Book Value of revalued
assets at 30 June 2008 1,324,984 1,319,991 - - - 2,644,975
(c) Included in motor vehicles are assets under operating leases with third parties. The cost of these assets was =N=1,673 million
(2008:=N=1,342 million) with corresponding accumulated depreciation charges at the balance sheet date of =N=1,048 million
(2008: =N=667 million).
(d) Included in fixed assets are assets amounting to =N=142.3 million that had not been paid for and are included in creditors and
accruals.

44
10. INTANGIBLE ASSETS
Intangible assets represent cost of computer software less accumulated amortisation and comprise:
=====NNNNN=’’000=’’000=’’000=’’000=’’000
At Cost:At Cost:At Cost:At Cost:At Cost:
At 1st July 2008 1,859,567
Additions 706,368
At 30 June 2009 2,565,935
Amortisation:Amortisation:Amortisation:Amortisation:Amortisation:
At 1st July 2008 548,101
Charge for the year 211,000
At 30 June 2009 759,101
Net carrying amount:
At 30 June 2009 1,806,834
At 30 June 2008 1,311,466
11. LONG-TERM DEBTORS AND PREPAYMENTS
20092009200920092009 20082008200820082008
=====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000
Long-term debtor (Note (a)) 27,173 33,951
Long-term debtor - employees (Note (b)) 251,412 322,675
Long-term prepayment 120,708 177,197
399,293 533,823
20092009200920092009 20082008200820082008
NNNNN======’’000=’’000=’’000=’’000=’’000 NNNNN======’’000=’’000=’’000=’’000=’’000
(a) This represents an investment in a finance lease and is analysed as follows:
Finance lease receivable 84,122 101,852
Less: current portion included in current debtors
(Note 13) (56,949) (67,901)
Long-term portion 27,173 33,951
The unguaranteed residual value in respect of the leased asset at year end was Nil (2008: Nil).
(b) Long term debtor - employees represents loans granted to the company's employees which are backed by
employees' gratuity benefits. No interest is charged on these loans.

INFOMATION
45
12. STOCKS
20092009200920092009 20082008200820082008
=====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000
Bottled beer 820,853 961,297
Beer in process 469,864 202,244
Raw and packaging materials 4,656,503 3,177,331
Empty bottles and containers 5,258,741 4,630,191
Engineering spares 2,799,778 3,496,404
Stock in transit 2,841,960 399,975
16,847,699 12,867,442
(a) The increase in stocks for the purposes of the statement of cash flows comprises:
20092009200920092009 20082008200820082008
=====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000
Stock related exceptional items not in involving movement of cash - (1,090,066)
Balance, end of year (16,847,699) (12,867,442)
(3,980,257) (1,236,610)
13. DEBTORS AND PREPAYMENTS
20092009200920092009 20082008200820082008
NNNNN======’’000=’’000=’’000=’’000=’’000 NNNNN======’’000=’’000=’’000=’’000=’’000
Trade debtors 6,347,527 3,172,601
Other debtors (Note (a)) 1,552,273 2,210,591
Interest receivable 76,895 247,844
Export expansion grant receivable 700,928 394,029
Prepayments 370,272 435,954
Current portion of long-term debtors (Note 11 (a)) 56,949 67,901
9,104,844 6,528,920
(a) Included in other debtors is an amount of N558 million (2008: N461 million) due from Diageo Group Companies.

46
14. CASH AND CASH EQUIVALENTS
20092009200920092009 20082008200820082008
NNNNN======’’000=’’000=’’000=’’000=’’000 NNNNN======’’000=’’000=’’000=’’000=’’000
Cash and Bank balances 2,915,346 762,211
Short-term deposits with banks 2,905,648 14,345,769
5,820,994 15,107,980
(a) Included in short term deposits are unclaimed dividends amounting to N794 million (2008: N798) (Note 7(c))
which under the Securities and Exchange Commission guidelines are required to be held in separate bank
accounts. This amount is restricted from use by the company.
15. CREDITORS AND ACCRUALS
20092009200920092009 20082008200820082008
=====NNNNN=’’000=’’000=’’000=’’000=’’000 =====NNNNN=’’000=’’000=’’000=’’000=’’000
Trade Creditors 5,992,045 5,398,206
Other creditors (Note (a)) 7,533,629 6,093,228
Accruals 4,220,615 3,877,237
Defined contribution accruals 211,353 -
17,957,642 15,368,671
(a) Included in other creditors is an amount of N3,266 million (2008: N1,021 million) due to Diageo Group Companies.
16. DEFERRED TAXATION
The movement on the deferred tax account was as follows:
20092009200920092009 20082008200820082008
NNNNN======’’000=’’000=’’000=’’000=’’000 NNNNN======’’000=’’000=’’000=’’000=’’000
Charge for the year (Note 6(a)) 207,488 1,239,689
Balance, end of year 8,093,952 7,886,464

Guinness nigeria plc annual report 2009

Guinness nigeria plc annual report 2009

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Guinness nigeria plc annual report 2009