pz cussons nigeria plc q2 unaudited financial statements for the period ...

PZ CUSSONS NIGERIA PLC Q2 UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 NOVEMBER 2015

UNAUDITED FINANCIAL RESULTS FOR THE PERIOD ENDED 28 NOVEMBER 2015 GROUP 2015

2014

N'000

N'000

30,619,841

31,659,965

Operating Profit

1,320,870

1,922,961

Profit Before Tax

1,152,589

1,941,740

Taxation

(373,137)

(500,553)

779,452

1,441,187

Owners of the company

676,893

1,272,523

Non-controlling interests

102,559

168,664

779,452

1,441,187

20

36

Turnover

Profit for the period Attributable to:

Earnings per share (Kobo)

PZ CUSSONS NIGERIA PLC Unaudited consolidated statement of profit or loss and other comprehensive income for the period ended 28 November, 2015 Current Prior Period N'000 N'000 Revenue 30,619,841 31,659,965 Cost of Sales 22,299,034 23,073,566 Distribution/Admin and Other Expenses 6,999,937 6,663,438 Other Income 134,826 68,699 Financial Charges(Net Finance cost) 303,107 49,920 Profit/Loss Before Tax 1,152,589 1,941,740 Taxation 373,137 500,553 Profit/Loss After Tax 779,452 1,441,187 Other Comprehensive Income Total Comprehensive Income 779,452 1,441,187 Profit/Loss After Tax Attr. To Noncontrolling Int 102,559 168,664 Profit/Loss After Tax Owners of the Company 676,893 1,272,523 Total Comp. Inc.Attr. to Non-Controlling Interest 102,559 168,664 Attributable to Owners of the Company 676,893 1,272,523 Basis Earnings per Share 20 36 Fully Diluted Earnings per Share

% Change -3.29% 3.36% -5.05% 96.26% 507.19% -40.64% -25.46% -45.92% -45.92% -39.19% -46.81% -39.19% -46.81% -45.92%

Prior Year(Audited) N'000 73,126,070 52,672,138 13,802,910 121,861 216,069 6,556,814 1,986,027 4,570,787 4,570,787 517,503 4,053,284 517,503 4,053,284 1

Consolidated statement of finacial position as at 28 November, 2015

42,170,067

1.40% 12.04% 1.40% 12.09% -6.45% 35.63% 144.48% 12.04%

Beginning of Prior Year N'000 24,485,136 46,480,599 24,485,136 20,292,556 20,679,990 1,030,504 4,477,549 46,480,599

Trade and Other Payables 24,755,830 17,834,536 Current Financial liabilities Current Tax Liabilities 1,862,161 1,671,311 Total Current Liabilities 26,621,936 19,562,981 Non-Current Financial liabilities Provisions 302,086 306,034 Deferred Tax Liabilities 3,840,284 3,903,589 Liabilities included in disposal groups classified as held for sale (Where applicable) Total Non-Current Liabilities 4,138,425 4,152,489 Working Capital 20,623,811 22,607,086 Net Assets 42,056,911 43,672,444

-38.81% 0.00% -11.42% -36.08% 0.00% 1.29% 1.62% 0.34% -8.77% -3.70%

21,897,870 1,863,541 23,952,048 299,861 4,365,881 4,475,105 22,528,551 42,538,582

-4.59% -4.15%

1,963,821 40,574,761

Current Period N'000 25,571,525

Property, plant and equipment Deferred Tax Assets Investment property Intangible Assets Investments accounted for using the equity method Financial assets Non-current asset held for sale and disposal groups Total Non Current Assets Inventories Debtors and Other Receivables Deposits for letters of credits Cash and cash equivalents Total Current Assets

% Change

N'000 25,217,847

47,245,747 25,571,525 23,552,524 16,757,451 1,243,211 5,692,561

42,170,067 25,217,847 21,012,631 17,912,325 916,639 2,328,472

47,245,747

2,338,209 39,718,702

Non Controlling Interest Attributable to Owners of the Company

Prior Year End

2,235,650 41,436,794

Statement of changes in equity

Share Capital N'000 1,985,238

Balance as at Beginning of the Prior Year Changes in Accounting Policy Restated Balance Changes in Equity for the Prior Year: Issued Share Capital(Bonus) Dividend(relating to year ended 31 May 2014) Interim Div. (relating to year ended 31 May 2015) Total Comprehensive Income Special dividend paid in 2015 Unclaimed Dividend Forfeited Write Back Balance as at End of the Prior Year Changes in Equity Current year: Issued Share Capital Dividend(relating to year ended 31 May 2015) Interim Div. (relating to year ended 31 May 2016) Unclaimed Dividend Forfeited Write Back Prior year adjustment Total Comprehensive Income Balance as at End of the Current Year

1,985,238 -

PPE Cash Flow Currency Revaluation Available for Sale Fin. Hedging Translation Surplus Assets Reserve Reserve Other Reserves N'000 N'000 N'000 N'000 N'000 6,878,269

Capital Reserve

6,878,269

-

-

-

-

N'000

Non-Controlling Retained Earnings Total Interest Total Equity N'000 N'000 N'000 N'000 31,711,254 40,574,761 1,963,821 42,538,582

-

1,985,238

6,878,269

-

-

-

-

-

-

1,985,238

6,878,269

Statement of cashflows Current Year(3 Months) Prior Year (12 Months) N'000 N'000 Cash Flow from Operating Activities 7,652,476 6,938,709 Operating Cash Flow before Changes Working Capital Changes 2,509,142 8,834,415 Net Cash Generated from Operating Activities 7,470,189 4,298,160 Cash Flow from Investing Activities 1,331,175 2,540,613 Cash Flow from Financing Activities 2,774,925 3,906,624 Net Increase/Decrease Cash and Cash Equivalent 3,364,089 2,149,077 Cash and Cash Equivalent Beginning of the Year 2,328,472 4,477,549 Cash and Cash Equivalent End of the Year 5,692,561 2,328,472

CORPORATE ACTION Proposed Bonus

NA

Interim Dividend Closure Date Date of Payment AGM Date AGM Vanue

NA NA NA NA NA

% Change

-

10.3 71.6 73.8 47.6 29.0 256.5 48.0 144.5

31,711,254

40,574,761

2,421,991 794,096 4,053,284 24,836 32,573,287

2,421,991 794,096 4,053,284 24,836 41,436,794

2,421,991 27,006 676,893 30,855,195

2,421,991 27,006 676,893 39,718,702

1,963,821 245,674 517,503 2,235,650

- -

102,559 2,338,209

42,538,582 2,667,665 794,096 4,570,787 24,836 43,672,444

2,421,991 27,006 779,452 42,056,911

Gross Margin Operating margin Net Profit margin Current Ratio Quick Ratio (Acid test) NWC Accounts Receivable Turnover (Sales/Average AR) Debtors Days ( Closing Trade debtors/Total sales)*365 Inventory Turnover (CoGS/Ave Inventory) Stock Days (365/Inventotory turnover) EPS (N)

Q2, 2016 27% 4% 3% 1.8 0.9 20,623.8 6.9 42.2 2.2 167.7 0.20

Q2 2015 27% 6% 5% 2.2 1.1 22,607.1 7.7 47.6 2.4 151.8 0.36

Q2 2014 28% 9% 7% 1.9 1.1 22,528.6 9.6 33.4 2.4 152 0.58

28 NOV 2015

29 NOV 2014

779,452 20,623,811 72,817,272 2,000,000 1,985,238 6,878,269 0 30,855,195 42,056,911

1,519,421 22,607,086 67,387,914 2,000,000

Financial Performance Net Profit/loss Networking capital Capital Employed Authorised share capital Issued & Fully paid: Share capital Share premium Revaluation reserves Other reserves Shareholders Fund

1,985,238 6,878,269 0 32,573,287 43,672,444

PZ Cussons Nigeria PLC Unaudited consolidated statement of profit or loss and other comprehensive income for the period ended 28 November 2015

The Group Q2 2016

Q2 2015

Total N'000 Continuing operations Revenue Cost of sales

The Company %

Q2 2016

Total N'000 Change

Total N'000

Q2 2015

%

Total N'000 Change

30,619,841 (22,299,034)

31,659,965 (23,073,566)

(3) (3)

8,320,807 (4,310,984)

8,586,399 (4,415,974)

(3)

5,763,568

5,597,503

3%

Selling and distribution costs

(2)

(3,177,393)

(3,214,088)

-1%

Administrative expenses

(2,688,953)

(2,247,464)

20

(2,408,900)

(1,981,095)

22%

1,320,870 134,826 76,833 (379,940) (303,107) 1,152,589 (373,137)

1,922,961 68,699 387,911 (437,831) (49,920) 1,941,740 (500,553)

(31) 96 (80) (13) 507 (41) (25)

177,275 200,702 6,823 (494,243) (487,420) (109,443) (19,898)

402,320 138,985 116,474 (389,551) (273,077) 268,228 (22,847)

-56% 44% -94% 27% 78% -141% -13%

Profit after taxation

779,452

1,441,187

(46)

(129,341)

245,381

-153%

Attributable to: Equity holders of the parent Non controlling interest

676,893 102,559

1,272,523 168,664

(47) (39)

(129,341)

245,381

-153%

(3) (3)

6 6

Gross profit

Operating profit Other income Interest income Interest cost Net finance cost Profit before taxation Taxation

Basic EPS (kobo) Diluted EPS (kobo)

20 20

20,378,368 (14,614,800)

36 36

The results shown above for 2015/16 in comparison to 2014/15 relate to continuing operations.

6

20,538,041 (14,940,538)

-1% -2%

PZ Cussons Nigeria Plc Unaudited consolidated statement of financial position as at 28 November 2015 The Group Q2 2016 Notes Assets Non-current assets Property, plant and equipment Investments in subsidiaries

Current assets Inventories Trade and other receivables Deposits for letter of credit Cash and cash equivalents Current taxation receivable

4 5

6 7 8 9

Total assets Equity Ordinary share capital Share premium Retained earnings Equity attributable to equity holders of the company Non controlling interest Total equity

16

N'000

2015 N'000

The Company Q2 2016 N'000

2015 N'000

25,571,525 -

25,217,847 -

19,792,767 526,406

19,239,673 526,406

25,571,525

25,217,847

20,319,173

19,766,079

23,552,524 16,757,451 1,243,211 5,692,561

21,012,631 17,912,325 916,639 2,328,472

16,378,425 12,793,581 775,500 4,645,517

13,241,598 13,085,927 439,431 1,573,626

47,245,747 72,817,272

42,170,067 67,387,914

34,593,023 54,912,196

28,340,582 48,106,661

1,985,238 6,878,269 30,855,195

1,985,238 6,878,269 32,573,287

1,985,238 6,878,269 15,197,096

1,985,238 6,878,269 17,721,422

39,718,702 2,338,209 42,056,911

41,436,794 2,235,650 43,672,444

24,060,603 24,060,603

26,584,929 26,584,929

Liabilities Non-current liabilities Deferred taxation Provisions

14 15

3,840,284 298,141 4,138,425

3,903,589 248,900 4,152,489

3,719,462 3,719,462

3,757,845 3,757,845

Current liabilities Trade and other payables Current taxation payable Provisions

12 13 15

24,755,830 1,862,161 3,945 26,621,936 30,760,361 72,817,272

17,834,536 1,671,311 57,134 19,562,981 23,715,470 67,387,914

26,693,470 438,661 27,132,131 30,851,593 54,912,196

17,129,501 634,386 17,763,887 21,521,732 48,106,661

Total liabilities Net equity and liabilities

-

2

PZ Cussons Nigeria Plc Unaudited consolidated statement of changes in equity as at 28 November 2015 The Group Attributable to owners of the company

At 1 June 2015 Profit for the year Deferred tax on revalued assets transferred to reserves

Share capital N'000

Share premium N'000

Retained earnings N'000

Non controlling interest N'000

Revaluation reserve

1,985,238 -

6,878,269 -

31,711,254 4,053,284

1,963,821 517,503

-

4,053,284

517,503

(2,421,991)

(245,674)

(2,667,665)

(794,096)

-

(794,096)

Total comprehensive income for the year

-

-

Total N'000 42,538,582 4,570,787 -

-

4,570,787

Transactions with owners: Dividend paid relating to year ended 31 May 2014 Interim Dividend paid relating to year ended 31 May 2015 Unclaimed dividend forfeited

24,836

24,836 -

Total transaction with owners

-

-

(3,191,251)

(245,674)

At 31 May 2015

1,985,238

6,878,269

32,573,287

2,235,650

-

43,672,444

At 1 June 2015 Profit for the period

1,985,238 -

6,878,269 -

32,573,287 676,893

2,235,650 102,559

-

43,672,444 779,452 -

Total comprehensive income for the period Transactions with owners:

-

-

676,893

Dividend paid relating to year ended 31 May 2015 Unclaimed dividend forfeited

102,559

-

-

-

(2,394,985)

-

1,985,238

6,878,269

30,855,195

2,338,209

3,436,925

779,452

(2,421,991) 27,006

Total transaction with owners At 28 November 2015

-

-

(2,421,991) 27,006 2,394,985 42,056,911

Note: The group recognised Plant, Property and Equipment at deemed cost in the preparation of the IFRS opening statement of financial position. Accordingly, revaluation reserve of N7.5 billion existing in the NGAAP financial statements was

PZ Cussons Nigeria Plc Statement of changes in equity as at 28 November 2015 Company Attributable to owners of the company

At 1 June 2014 Profit for the year

Share capital N'000

Share premium N'000

Retained earnings N'000

Non controlling interest N'000

1,985,238 -

6,878,269 -

18,743,806 2,168,867

-

Total comprehensive income for the year Transactions with owners:

-

-

2,168,867

Dividend paid relating to year ended 31 May 2014 Interim Dividend paid relating to year ended 31 May 2015 Unclaimed dividend forfeited

Revaluation reserve

-

-

2,168,867

-

- -

(2,421,991) (794,096) 24,836

3,191,251

-

-

At 31 May 2015

1,985,238

6,878,269

17,721,422

-

-

At 1 June 2015 Loss for the year

1,985,238 -

6,878,269 -

17,721,422 (129,341)

-

-

-

-

(129,341)

-

-

3,191,251 26,584,929

26,584,929 (129,341) (129,341)

(2,421,991) 27,006

Total transaction with owners

At 28 November 2015

27,607,313 2,168,867 -

-

(2,421,991) (794,096) 24,836

Total transaction with owners

Total comprehensive income for the year Transactions with owners: Dividend paid relating to year ended 31 May 2015 Unclaimed dividend forfeited

Total N'000

(2,421,991) 27,006

-

-

(2,394,985)

-

-

(2,394,985)

1,985,238

6,878,269

15,197,096

-

-

24,060,603

Note: The group recognised Plant, Property and Equipment at deemed cost in the preparation of the IFRS opening statement of financial position. Accordingly, revaluation reserve of

3

PZ Cussons Nigeria Plc Statement of Cash flows At 28 November 2015 The Group

The Company

Q2 2016 N'000

2015 N'000

Q2 2016 N'000

2015 N'000

Cash generated from operations Taxation

7,652,476 (182,287)

6,938,709 (2,640,549)

7,438,734 (249,829)

4,769,208 (1,063,810)

Net cash flow generated from operating activities

7,470,189

4,298,160

76,833

228,794

Cash flows from operating activities

Cash flows from investing activities Interest received Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Net cash used in investing activities

Cash flows from financing activities Interest Expense Dividends paid to Company shareholders Dividends paid to Non controlling interests Net cash flow used in financing activities Net increase in cash, cash equivalents and bank overdrafts Cash, cash equivalents and bank overdrafts at the beginning of the year Cash, cash equivalents and bank overdrafts at the end of the year

7,188,905

6,823

3,705,398

94,802

(1,417,149)

(2,783,166)

(1,240,326)

(2,084,259)

9,141

13,759

5,717

10,475

(1,331,175)

(2,540,613)

(1,227,786)

(1,978,982)

(379,940)

(444,863)

(494,243)

(725,903)

(2,394,985) -

(3,216,087) -

(2,889,228)

(3,941,990)

(2,394,985) -

(2,774,925)

(3,216,087) (245,674)

(3,906,624)

3,364,089

(2,149,077)

3,071,891

(2,215,574)

2,328,472

4,477,549

1,573,626

3,789,200

5,692,561

2,328,472

4,645,517

1,573,626

4

PZ Cussons Nigeria Plc Notes to the consolidated financial statements At 28 November 2015 4. Property, plant and equipment The Group 2016

Cost At 1 June 2015 Additions Reclassifications Intercoy transfers Write Off Disposals At 28 Nov. 2015

Freehold land and buildings N'000 29,048 29,048

Leasehold land and buildings N'000 15,942,343 462,281 16,404,624

Plant and Machinery N'000 18,407,439 602,079 19,009,518

Office furniture and fittings N'000 2,101,534 90,899 (18,554) 2,173,879

Capital Motor Work in vehicles progress N'000 N'000 718,479 2,543,293 1,417,149 - (1,155,259) (56,298) 662,181 2,805,183

Total N'000 39,742,136 1,417,149 (74,852) 41,084,433

6,391 290 6,681

2,495,306 147,675 2,642,981

9,636,970 805,752 10,442,722

1,705,384 98,779 (18,552) 1,785,611

680,236 10,091 (55,414) 634,913

14,524,287 1,062,587 (73,966) 15,512,908

22,367

13,761,643

8,566,796

388,268

27,268

Depreciation At 1 June 2015 Charge for the year Impairment charge Intercoy transfers On Write off On Disposals At 28 Nov. 2015 Net book values At 28 Nov. 2015

-

2,805,183

25,571,525

2015

Cost At 1 June 2014 Additions Transfers Write Off Disposals At 31 May 2015

Freehold land and buildings N'000 29,048

Leasehold land and buildings N'000 15,726,157 216,186

29,048

15,942,343

Plant and Machinery N'000 16,949,320

Office furniture and fittings N'000 1,964,150

1,458,119 -

(100,611)

Capital Work in progress N'000 1,672,424 2,783,166 - (1,912,296)

Motor vehicles N'000 810,892

237,991

18,407,439

2,101,530

(92,412) 718,480

2,543,294

Total N'000 37,151,991 2,783,166 (193,023) 39,742,134

Depreciation At 1 June 2015 Charge for the year

5,736 655

2,209,028 286,278

On Write off On Disposals At 31 May 2015

8,113,848 1,523,122 -

1,622,283 183,525

-

(100,424)

715,960 51,341

12,666,855 2,044,921 -

(87,065)

6,391

2,495,306

9,636,970

1,705,384

680,236

22,657

13,447,037

8,770,469

396,146

38,244

(187,489) -

14,524,287

Net book values At 31 May 2015 At 31 May 2014

23,312

13,517,129

8,835,472

341,867

94,932

Office furniture and fittings N'000 1,787,266

Motor vehicles N'000 612,461

2,543,294

25,217,847

1,672,424

24,485,136

The Company 2016

Cost At 1 June 2015 Additions Reclassifications Intercoy transfers Write Off Disposals At 28 Nov. 2015

Freehold land and buildings N'000 29,048

Leasehold land and buildings N'000 14,113,507

Plant and Machinery N'000 12,063,141

250,684

309,382 (34,032)

29,048

14,364,191

12,338,491

6,391 290 -

2,337,763 128,422 -

85,534

(11,124) 1,861,676

(46,918) 565,543

1,496,390 70,238 -

602,910 3,798 -

(11,123) 1,555,505

(46,533) 560,175

306,171

5,368

Capital Work in progress N'000 2,041,138 1,240,326 (645,600)

2,635,864

Total N'000 30,646,561 1,240,326 (34,032) (58,042) 31,794,813

Depreciation At 1 June 2015 Charge for the year Impairment charge Intercoy transfers On Write off On Disposals At 28 Nov. 2015 Net book values At 28 Nov. 2015

6,681

2,466,185

6,963,433 462,289 (12,222) 7,413,500

22,367

11,898,006

4,924,991

-

-

-

11,406,887 665,037 (12,222) (57,656) 12,002,046

-

2,635,864

19,792,767

2015

Cost At 1 June 2014 Additions Transfers Reclassification Disposals At 31 May 2015

Freehold land and buildings N'000 29,048 -

Leasehold land and buildings N'000 14,054,085 59,421

29,048

14,113,506

Plant and Machinery N'000 11,148,644 921,494 (6,997) 12,063,141

5,736 655 6,391

2,083,576 254,187 2,337,763

6,040,080 923,353 6,963,433

Office furniture and fittings N'000 1,663,624 224,071

Capital Motor Work in vehicles progress N'000 N'000 664,774 1,161,865 2,084,259 - (1,204,986)

(100,428) 1,787,267

(52,313) 612,461

2,041,138

Total N'000 28,722,040 2,084,259 (6,997) (152,741) 30,646,561

1,464,144 132,487 (100,241) 1,496,390

615,256 34,805 (47,150) 602,911

-

10,208,792 1,345,487 (147,391) 11,406,888

Depreciation At 1 June 2014 Charge for the year On disposals At 31 May 2015 Net book values At 31 May 2015 At 31 May 2014

22,657 23,312

11,775,743 11,970,509

5,099,708 5,108,564

290,877 199,480

9,550 49,518

2,041,138 1,161,865

5

19,239,673 18,513,248

PZ Cussons Nigeria Plc Notes to the consolidated financial statements At 28 November 2015 5. Investments in subsidiaries

Q2 2016 N'000

The Company 2015 N'000

2014 N'000

526,406 526,406

526,406 526,406

526,406 526,406

The Company At 30 August 2015 Additions Total There are no restrictions in transfer of funds within the entities in the group Principal investments N'000 504,406 2,000 10,000 10,000 526,406

HPZ Limited Roberts Pharmaceuticals Limited PZ Power Company Limited PZ Tower Limited Total

ownership % 74.99 100.00 99.99 99.99

6. Inventories

Raw materials and consumables Work in progress Finished goods and goods for resale Engineering spares and other stocks Total

Q2 2016 N'000 12,074,202 9,514,044 1,964,278 23,552,524

The Group 2015 N'000 12,236,662

2014 N'000 11,648,453

Q2 2016 N'000 9,594,313

The Company 2015 N'000 8,053,017

2014 N'000 8,690,320

7,148,479 1,627,490 21,012,631

7,357,682 1,286,421 20,292,556

5,359,523 1,424,589 16,378,425

3,828,686 1,359,895 13,241,598

4,485,500 1,063,859 14,239,679

7. Trade and other receivables Group Receivables due within one year:

Company

Q2 2016

2015

2014

Q2 2016

2015

2014

N'000 8,409,426

N'000 9,416,359

N'000 7,121,430

N'000 3,821,331

N'000 3,571,948

N'000 3,015,152

(1,334,709)

(1,165,550)

(1,179,589)

(826,950)

(776,626)

(700,768)

7,074,717

8,250,809

5,941,841

2,994,381

2,795,322

2,314,384

-

-

-

1,751,462

3,999,808

2,529,025

Receivables from related party companies

4,312,590

5,414,239

10,982,895

3,327,208

2,565,709

5,636,974

Export Grant

1,663,118

1,663,117

1,217,228

1,643,659

1,643,658

Prepayments

534,059

189,014

299,240

502,021

117,258

169,681

3,172,967

2,395,145

2,238,786

2,574,850

1,964,172

1,810,419

16,757,451

17,912,324

20,679,990

12,793,581

13,085,927

13,658,252

Trade receivables Less: provision for impairment of trade receivables Net trade receivables Receivables from subsidiary companies

Other receivables Total

1,197,769

Export grants are accrued for at the rate of 20% of the invoiced value. The weighted eligibility criteria has 3 bands: 20%, 15% and 10%. Approval of the grant is subject to meeting the threshold for the following eligibility criteria: local value added, local content, employment (Nigerians), priority sector, export growth and capital investment.

6

6

PZ Cussons Nigeria Plc Notes to the consolidated financial statements At 28 November 2015 7. Trade and other receivables continued

Q2 2016 N'000 Movements in the provision for impairment of trade receivables are as follows: At 1 June Provision for receivables impairment Receivables written off during the year Closing

(1,199,036) (135,673) (1,334,709)

The Group 2015 N'000

2014 N'000

(1,179,589) (19,447) (1,199,036)

(1,115,533) (64,056) (1,179,589)

The Company Q2 2016 2015 N'000 N'000

(788,167) (38,783) (826,950)

(700,768) (87,399) (788,167)

2014 N'000

(613,369) (87,399) (700,768)

All trade receivables are denominated in Nigerian Naira. The credit risk of customers is assessed at a subsidiary and group level, taking into account their financial positions, past experiences and other factors. Individual customer credit limits are imposed based on these factors.

The credit period taken on sales ranges from 30 to 90 days due to the differing nature of trade receivables in the group's segments.

The group operates in twenty-six depots across the federation with about three hundred major distributors. The following table shows the age of trade receivables at the statement of financial position date for which no allowance for impairment of trade re 36.29758146 Customers are initially brought on board on a cash basis for a period of six months. At the expiration of the six months cash trading period, cusomers are free to apply for credit. Management assesses customers credit applications based on volume of trans

8. Deposits for letters of credit(LCs) Q2 2016 N'000

The Group 2015 N'000

2014 N'000

1,243,211

916,639

1,030,504

Q2 2016 N'000

The Group 2015 N'000

2014 N'000

5,692,561 5,692,561

2,328,472 2,328,472

4,477,549 4,477,549

Q2 2016 N'000

The Group 2015 N'000

2014 N'000

The Company Q2 2016 2015 N'000 N'000 775,500

2014 N'000

439,431

967,381

The Company Q2 2016 2015 N'000 N'000

2014 N'000

9. Cash and cash equivalents

Cash at bank and in hand Bank Overdrafts Cash and cash equivalents

4,645,517 4,645,517

1,573,626 1,573,626

3,789,200 3,789,200

The Company Q2 2016 2015 N'000 N'000

2014 N'000

10. Fair values of financial assets and financial liabilities

Set out below is a comparison by category of the carrying values and fair values of all the group’s financial assets and financial liabilities as at 28 Nov 2015. None of the financial assets and liabilities have been reclassified during the year. Carrying Carrying Carrying Carrying Carrying amount and fair amount and fair amount and fair amount and fair amount and value value value value fair value Loans and receivables 5,692,561 4,645,517 Cash and short-term deposits (note 8) 2,328,472 4,477,549 1,573,626 16,223,392 Trade and other receivables less prepayments (note 7) 17,723,310 20,380,750 12,291,560 12,968,669 Financial liabilities at amortised cost:

7

Carrying amount and fair value 3,789,200 13,488,571

PZ Cussons Nigeria Plc Notes to the consolidated financial statements At 28 November 2015 12 Trade and other payables

Trade payables Other taxation and social security Unclaimed Dividend Accruals Amounts owed to subsidiaries (Note 24) Amounts owed to related parties (Note 24) Other payables Total

Average credit period taken for trade purchases

Group Q2,2016 N'000

2015 N'000

2014 N'000

Q2,2016 N'000

Company 2015 N'000

2014 N'000

1,310,153 1,956,555 4,670,118 16,441,387 679,703 25,057,916

1,315,787 218,723.00 1,518,734 3,966,832 9,542,080 1,272,380 17,834,536

2,264,361 108,834 1,388,726 4,935,860 10,436,176 2,763,913 21,897,870

1,091,401 1,956,555 3,798,308 6,891,207 12,574,206 381,793 26,693,470

1,175,743 83,018 1,518,734 3,157,216 3,876,984 6,159,333 1,158,473 17,129,501

2,198,779 89,235 1,388,726 3,266,769 2,830,147 7,106,555 2,729,134 19,609,345

Days 90

Days 90

Days 90

Days 90

Days 90

Days 90

Trade and other payables comprise amounts outstanding for trade purchases and ongoing costs. The Directors consider the carrying amount of trade and other payables to approximates their fair value.

8

PZ Cussons Nigeria Plc Notes to the consolidated financial statements At 28 November 2015 13. Taxation continued Current tax payable

At 1 June Charge for the year Payment during the year Closing Balance

The Group 2016 N'000 1,671,311 373,137 (182,287) 1,862,161

2015 N'000

1,863,541 2,448,319 (2,640,549) 1,671,311

The Company 2016 N'000

2015 N'000

634,386 54,104 (249,829) 438,661

1,102,928 595,268 (1,063,810) 634,386

Property plant and equipment N'000 3,662,841 110,000 3,772,841 3,772,841

Provisions N'000 703,040 (572,292) 130,748 (63,305) 67,443

Total N'000 4,365,881 (462,292) 3,903,589 (63,305) 3,840,284

Provisions N'000 241,023 256,539 497,562 (38,383) 459,179

Total N'000 3,374,580 383,265 3,757,845 (38,383) 3,719,462

14. Deferred taxation The Group

At 1 June 2014 Charge to income statement At 31 May 2015 Charge to income statement At 28 Nov 2015 The Company

Property plant and N'000 3,133,557 126,726 3,260,283

At 1 June 2014 Charge to income statement At 31 May 2015 Charge to income At 28 Nov 2015

-

3,260,283

Certain deferred tax assets and liabilities have been offset in accordance with IAS 12 ‘Income taxes’. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

N'000 Deferred tax assets Deferred tax liabilities

-

The Group The Company N'000 N'000 3,840,284 3,719,462 3,840,284 3,719,462

Group and company 1. At the statement of financial position date, the group and the company have no unused tax losses available for offset against future profits. There was no offset of deferred tax assets and deferred tax liabilities. 2. The company opted for 'Deemed Cost' for the value of PPE on conversion to IFRS. The consequence is that the revaluation reserves N7.5b is no longer needed and is now reclassified into retained earnings. The associated defered tax was also adjusted and the net impact of this is N1.13b increase on Defered tax. 15. Provisions The Group 2016 N'000 Warranty provisions At 1 June Charged to the income statement Utilised in the year Otr 2 End The ageing of the provisions are as follows: Within 12 months Greater than 12 months Total

2015 N'000

306,034 3,945 (7,893) 302,086

299,861 57,134 (50,961) 306,034

302,086 3,945 298,141 302,086

306,034 57,134 248,900 306,034

Warranty provisions The group generally offers 1- to 3-year warranties for its electrical products and components. Directors estimates the related provision for future warranty claims based on historical warranty claim information, as well as recent trends that might suggest

Factors that could impact the estimated claim information include the success of the group’s productivity and quality initiatives, as well as parts and labour costs.

9

PZ Cussons Nigeria Plc Notes to the consolidated financial statements At 28 November 2015 16. Ordinary share capital Group and company

Number Number A mount in thousands 000 N'000

Authorised: Ordinary shares of 50k each Total authorised share capital Allotted, called up and fully paid: Ordinary shares of 50k each Total called up share capital

-

-

-

-

4,000,000 4,000,000

2,000,000 2,000,000

-

3,970,478 3,970,478

1,985,238 1,985,238

-

Amount N'000

18. Operating lease commitments At the statement of financial position date, the Group and Company had outstanding commitments for future minimum lease payments under non-cancellable operating leases over certain of its office properties, which fall due as follows: Within one year In the second to fifth years inclusive Over five years 19. Related party transactions Group and company The group and company are controlled by PZ Cussons (Holding) Limited, incorporated in the UK, which owns 66.81% of the group and company's shares. The remaining 33.19% of the shares are widely held. The group’s ultimate parent is PZ Cussons Plc (incorpora All trading balances will be settled in cash. There were no provisions for doubtful related party receivables at 30 August 2014 and no charges to the income statement in respect of doubtful related The company controls a number of subsidiaries. These are detailed in note 5. The Company The company is controlled by PZ Cussons (Holdings) Limited, incorporated in the UK, which owns 66.81% of the company’s shares. The remaining 33.19% of the shares are widely held. The company’s ultimate parent is PZ Cussons Plc (incorporated in the UK). All trading balances will be settled in cash. There were no provisions for doubtful related party receivables at 30 August 2014 and no charges to the income statement in respect of doubtful related party receivables.

10

PZ Cussons Nigeria Plc Notes to the consolidated financial statements At 28 November 2015 19

Cash generated from operating activities Group Q2 2016 N'000

2015 N'000

Company Q2 2016 N'000

2015 N'000

Cash flows from operating activities Profit before taxation

1,152,589

6,556,814

(109,443)

3,147,400

1,062,587 (9,141) 379,940 (76,833)

2,044,921 (8,225) 24,836 444,863 (228,794)

665,037 21,810 (5,717) 494,243 (6,823)

1,345,487 6,997 (5,124) 24,836 725,903 (94,802)

2,509,142

8,834,415

1,059,107

5,150,697

1,154,874 (326,572) (2,539,893) 6,854,925

2,767,665 113,865 (720,075) (4,057,161)

292,346 (336,069) (3,136,827) 9,560,177

572,325 527,949 998,081 (2,479,844)

7,652,476

6,938,709

7,438,734

4,769,208

Adjustment to reconcile net income to cash provided: Depreciation Intercompany transfer of fixed assets (Profit)/loss on disposal of fixed assets Unclaimed dividend forfeited Interest expense Interest income

4 4

Changes in assets and liabilities (Increase)/decrease in trade and other receivables Decrease/(increase) in deposit for letters of credit Decrease/(increase) in inventories Increase/(decrease) in trade, other payables and provisions Cash flows from operating activities