FAN MILK LIMITED 1 FINANCIAL STATEMENTS 2 FAN MILK LIMITED FINANCIAL STATEMENTS ” and shareholders. partners to grow, for employees, our providingpeople, opportunities to delight of widest number the and enjoyable products, refreshing nourishing, offering “Strengthen by our leadership Ambition Our ” business model. and an inclusiveproducts Refreshing and enjoyable offering nourishing, many as possible by people wellbeing the ‘’Enhance for as Statement Mission Our Contents

5 Corporate Information

6 Report of the Directors

8 Managing Director’s Review

12 Corporate Governance

14 Independent Auditor’s Report

22 Financial Statements:

23 i. Statement of profit or loss and other comprehensive income

24 ii. Statement of financial position

25 iii. Statement of changes in equity

26 iv. Statement of cash flows

27 v. Notes

57 Financial Highlights

58 Coropate Social Resposibility

FAN MILK LIMITED 3 FINANCIAL STATEMENTS 4 FAN MILK LIMITED FINANCIAL STATEMENTS Transfer Office & Registrar Solicitor Registered Office Independent auditor Secretary Directors Information Corporate P.O. Box 9563 Airport, Accra P.O. Airport, 9563 Box Martco House NTHC Limited P.O. Accra 7566 Box &Associates Wontumi Brown, Quist, Accra Airport Commercial Area Link Liberation 9, South No. Plot Building Oyeeman Grand Cantonments Accra 42 CT PMB City Cantonment Lane, Rangoon A4 Tower PwC Accountants Chartered PricewaterhouseCoopers P.O. Accra 37 Box &Co. Lennap El Khatib Zahi Santos Dos Carneiro Tiago Frédéric Leblan Pierre Armangau Peace Ayisi-Okyere George H. Okai Thompson Ziobeieton Yeo Charles Mensa (Dr.) (Resigned on October 9, 2019) October on (Resigned Non-executive Director 27, 2020) February on (Resigned Non-executive Director Non-executive Director 2019) 30, November on (Resigned Non-executive Director Non-executive Director Non-executive Director 2019 1, January on (Appointed Managing Director Chairman

)

5 FAN MILK LIMITED FINANCIAL STATEMENTS 6 FAN MILK LIMITED FINANCIAL STATEMENTS safeguarding the assets of the of the assets the safeguarding directors are also responsible for The Company. of the position accuracy at any time the financial that disclose with reasonable keeps proper accounting records Company the that ensuring for The directors are responsible (Act 992). 2019 Act, requirements of the Companies the with complied and Standards International Financial Reporting and prudent and followed and estimates that are reasonable consistently, made judgements them applied then and policies selected suitable accounting thestatements, directors have In preparing these financial period. that for flows cash and loss or profit of the and Company the of of affairs state of the view fair and year, a true give which statements for each financial of financial preparation the for The directors are responsible responsibilities Statement of directors’ 2019. 31, December ended year the for Limited Milk of Fan statements financial audited the with together The directors submit their report Report Directors’

concern. agoing be not will business the believe to reason no have and concern a going as to continue ability Company’s of the assessment an made have directors The irregularities. other and of fraud detection and prevention the Company and taking reasonable steps for for the year ended 31 December 2019. December 31 ended year the for dividend recommend not do directors The Dividends 51% to 100%. A/S from International Milk Fan in stake its increased directly S.A. Danone when 2019 30, July since S.A of Danone subsidiary owned A/S awholly is International Milk Fan shareholding. 56.64% with Limited Milk of Fan shareholder majority the is Denmark in A/S incorporated International Milk Fan Holding Company wholesale and retail. both provisions preserved other and recombined milk and other products dairy in dealers and of sellers business the on to carry as well as products dairy other distribution of recombined milk and and production manufacture, the is The principal of activity the Company activity Principal The financial results of the Company for the year ended December 31, 2019 are set out below: out set are 2019 31, December ended year the for Company the of results financial The BY ORDER OF THE BOARD: THE BY OF ORDER (Act 992). 2019 Act Companies of the 139(5) Section with accordance in office in to continue willingness their expressed has auditor, PricewaterhouseCoopers, The Auditor 2019. 31, December at million to GH¢259.6 2019 1, January at as million GH¢234.58 from increased worth net Company’s The Date: 24 April 2020 24 April Date: (Signature) Dr. Charles Mensa Financial results leaving a balance carried forward on retained earnings of earnings retained on forward carried abalance leaving of dividend approved deducted is which from earnings retained on forward brought balance added is to which of year the for tax after aprofit giving of tax deducted is which from is year the for tax before Profit Ziobeieton Yeo Ziobeieton (Signature)

GH¢‘000 224,575 249,591 (13,718) 38,734 25,016

7 FAN MILK LIMITED FINANCIAL STATEMENTS 8 FAN MILK LIMITED FINANCIAL STATEMENTS Our Agent Workshop Conferences and consumers better. our to serve us help and network Agent core our to augment (19 Key Distributors) network Key anew Distributor developed we whilst agents, new 214 additional an by grew ecosystem Agents indoor. Our presence our strengthen well as market to route outdoor our expanding and strengthening in heavily We invested have way. asustainable in available food nutritious tasty by way making a positive in of Ghanaians of millions lives the enrich and we touch day Every possible. as people many to as food through Health to bring commitment astrong we have At FanMilk, Development Service Customer business. asustainable do Ghana by deploying various strategies to in future abrighter to creating contributed we Milk, Fan of staff and Management the with together all, Above conditions. market challenging the despite growth profit double-digit strong and revenue in growth 9% almost achieving promise, our to deliver able we were that announce to delighted am I profit. and revenue in growth ahealthy year,Last promise we did 2019. December 31 ended year the for operations of our review management to the you I present with. confronted is world the that pandemic to the due meeting General Annual virtual first very to you our welcome I warmly that pleasure a great with is it gentlemen, Distinguished shareholders, ladies and Introduction Review Director’s Managing

leverage the growth potential it presents. it potential growth the leverage to channel Indoor the developing on focus astrong We driving are results. better deliver and efficiency more to drive operations re-organized the Sales infrastructure and results-driven Sales organization. We have performing, ahigh by is developing levels service to improve customer way best the We believe mandate. service customer our drives that Team engine the is Sales Our future. into the making decision data-driven drive to it to using forward look and performance contributionits to understanding business in impact apositive seeing We already are utilization. the grown steadily have and 2019 July in platform the We commissioned Agent/Vendor point to Salesman point. from chain; the across data capture Sales Automation Infrastructure to help acomprehensive in invested we have such As making. decision informed and insights better key to the is automation data We believe year. coming the for collaboration better foster and year prior the for mance perfor- the recognize and engage us to help Awards continue increase was challenging; however, we on are challenging; was increase price on decision The 2019. Q4 in performance our impacted it expected, As 2019. October Frozen Core in our range on increase price average a20% out we rolled bottom-line, our protect and competitive to remain order In costs. utility high and fluctuation forex volatile materials, of raw cost rising inflation, high pressures on cost of production. We faced and volatile business environment with strong atough in operate us seen has year past The Portfolio & Product Innovation launches. new with consumers to excite continue will and ambition growth to our akeyas pillar We Innovation see future. into the brand the to grow this to leverage we hope and far so great been of has SuperYogo acceptance &Lemon). (Plain Consumer 2variants in available is and nutrients essential with packed comes It frozen yoghurt. fortified Goodness” and launched SuperYogo, a called segment “Nutrition/Natural market” a“new to We established also portfolio. the in recruitment and frequency of consumption gave consumers more choices. It also drove of FanYogo to 4and number the variants launching FanYogo CocoPine. This increased by FanYogo to the variant new portfolio a we added 2019, October In Innovations. Product with consumers We excited competition. from share gaining in helped and Indoor the in footprint youngamongst grown consumers, our an increase in frequency of consumption driven has pack FanIce new The pack. 250ml anew by launching of FanIce range Pack the extended We also have FanMaxx. and FanChoco on growth delivering in helped and performance in a turnaround driven Throughpack. these initiatives, we have 330ml the on barrier point price the address and recruitment to drive FanMaxx on pack 170ml anew We launched also experience. improve product and feedback consumer to address FanMaxx and of FanChoco renovation front, we reformulated recipe the On performance. a key our in role Product Renovation and Innovation played future. into the business the to sustain abasis provide will it believe and performance to recover track year ended 31 December 2019 shows a a shows 2019 December 31 ended year the for results financial Limited Milk Fan Operating and Financial Review: Review Director’s Managing

GHS25.0m compared to GHS12.9m in 2018. in to GHS12.9m compared GHS25.0m grew to by tax 93.9% after Profit 2019. in 38.7m to GHS 2018 in GHS16.1m from growing 141.0%, by increased before tax Profit sold. volumes in to increase due largely 2019 in to GHS424.5.m 2018 in GHS389.5m from % by 8.9 increased Revenue performance. good improvement compared with 2018 Investment 2018. in to GHS39.0m 2018 in GHS45.9m from declined equivalent cash and Cash Cash Flow: its environs, which otherwise would have have would otherwise which environs, its from the Tema New Town and Community of plastic tons over 60 sold and recovered center review, sorting the under year the In Agency. Development Netherlands the funding from Danone Ecosystem Fund and (WIEGO), with Organizing Globalizing Employment D-Lab), Informal in Women (MIT- Lab Design of Technology Institute EnvironmentMilk, 360, Massachusetts by Fan co-created a project as launched sector. Pick-IT was waste the in jobs new while maintaining existing and creating Ghana in environment a plastic-free socially responsible by plastic enabling that guarantees environmentally and system recycling inclusive an forward: path alternative an 2017,In proposed Milk Fan Economy Circular –Towards Center a Pick-IT Sorting & Information System support. 5.1m Administration for GHS and Sales m On 3.0 GHS Chain; 7.9m GHS Supply for Industrial; for 23.2m GHS areas: multiple in undertaken was 39.2m GHS than of more Investment delivering our ambitious growth agenda. our customers and consumer’s needs, thus to meet means acritical as equipment process efficient building in investment our to prioritize acompany, we continue As 9 FAN MILK LIMITED FINANCIAL STATEMENTS 10 FAN MILK LIMITED FINANCIAL STATEMENTS Finally, through GRIPE conversations of Ghana. cabinet the from approval which is currently under review pending Document, Policy Plastics National to the made were AGI contributions and GRIPE through stakeholder, of external terms In er. of GRIPE. work the advancing in role asignificant played (GRIPE) and Enterprises of Ghana Recycling Initiative by Private President Vice the as served Milk Fan 2019, Multi-Stakeholder Engagement, GRIPE: In Foundation Declaration. McArthur Ellen to the commitment external our achieving circularity and in fulfilment of towards commitments internal our with recyclable. These initiatives are in line be will packaging Limited’s Milk of Fan 100% that mean will This recycled. be Chloride (PVC) packaging since it cannot PolyVinyl all out to phase made was recyclable or compostable, the decision reusable, either is packaging our 2025 all by that to ensure goal our with line in Also, chain. value plastics the across people many for jobs created and Temaof the Newtown 10,000 residents, school children, members over reached has creation awareness Additionally, the project’s education and of over GHS50,000. wealth a shared ended up in landfill,thereby generating littered the community, choked or gutters Review Director’s Managing

Kumasi their to sanitation support efforts. and Accra in schools to Basic dustbins 100 we donated 2019, In planet. sustainable a to build order in of change agents to become children we empowering are sanitation. Through FanChoco Caravan, good and snacking of healthy importance the on children school to sensitize 2018 in Caravan FanChoco the introduced young amongst lifestyle we consumers, healthy a to foster efforts of our part As advanced. far very are Principle Pay Polluter the Producer using Scheme Responsibility around up setting Ghana’s Extended first Managing Director Ziobeieton Yeo attention. your for you I thank stakeholder. all for value to create business this to lead and continuoussupport confidence in us your for shareholders you, the We thank event. Awards Anniversary CIMG 30th the at brands legacy biggest of Ghana’s one FanYogo as celebrated was year. last by CIMG recognized was Ghana in landscape FMCG to the contribution Our strong equity/heritage and Award 11 FAN MILK LIMITED FINANCIAL STATEMENTS 12 FAN MILK LIMITED FINANCIAL STATEMENTS of stakeholders. of all its maximises term long value shareholder and takes into account interests the away in that is Company managed The shareholders. toaccountability its to and ensuring it makes that prosperity tocontribution long-term business corporategood governance. The Company recognises thevaluable of implementation and to principles the is Company committed The Introduction Governance Corporate the reliability of the financial statements. financial of the reliability the ensures sound internal control to facilitate adopts standard accounting practices and business the accounts, to the notes and the statement of responsibilities of directors in indicated As governance. of good interests the in are operations its in transparency and The Company believes that full disclosure experience and knowledge of the industry, their independent judgement. They have of exercise the with interfere materially could which any constraints, from free and Duker, are independent of management Percy David and Director Managing the Director). The board members, except directors (which includes the Managing executive two and directors non-executive three Chairman, of the consists board The prospects. and progress Company’s of the assessment and understandable balanced a presents board The management. and for monitoring of activities executive leading and controlling the Company the Company’s strategic direction, for setting for responsible is board The of Directors Board The December 2019. December 3 and 2019 February 21 on met committee review, the under period the During of assets. safeguarding the compliance with laws and regulations and auditor, internal financialprocess, external of the objectivity and process the independence of financial reporting others includes providing oversight of among Committee Audit of the role The board. to the back report they and of reference terms its determines board ayear. main The twice meets and Mensa executive directors chaired by Dr. Charles non- of two up made is Board of the The audit as committee a sub-committee The Audit Committee year. each times four least at meets board The board. by the adopted policies and chairman who the strategies implements the from individual aseparate is director managing The progress. Company’s to the information to make a valuable contribution business other and financial markets, duties and reporting lines are clearly defined. clearly are lines reporting and duties appropriately trained and personnel their control are implemented and monitored by of internal systems The business. the in systems control internal the of effectiveness of the assessment continuing and view objective an akey providing in role plays The internal audit of function the Company controlled. being are business the facing provide reasonable assurance that the risks to designed are These risks. monitoring and control systems for managing identifying, internal CompanyThe has well-established Control of Internal Systems duties. This code sets the professionalism and and professionalism the sets code This duties. of their discharge the in employees to its principles in the Company’s Code of Conduct Management has communicated the Ethics of Business Code eliminate the potential for illegal practices. illegal for potential the eliminate to as so principles to the adherence strict and bribery reporting, of financial obligations of reliability business partners, conflicts of interest,environmental issues, law, the with compliance covers which integrity required for business operations in the general operations of the business. of the operations general the in contract or taking up any significant role(s) a awarded of being by virtue interest of to conflict rise give that situations in herself or himself placed has directors executive non- of the none dealings, engagements. With regards to internal business other as well as held directorships of other by virtue competitors other with relationship to their regards with directors the Directors, ensures full disclosure of by of duties discharge the in of authority abuse no is there that to ensuring step progressive of its part Company, as The Interest of Conflict 13 FAN MILK LIMITED FINANCIAL STATEMENTS 14 FAN MILK LIMITED FINANCIAL STATEMENTS Report on the AuditReport of the Financial Statements to Members of Fan Limited Milk Auditor’sIndependent Report • • • • • The financialstatements comprise: 2019. December 31 ended year the for Limited Milk Fan of statements financial the We audited have we have audited What (Act 992). 2019 Act, Companies by the required manner the in and Standards Reporting Financial International with accordance in ended then year the for flows cash its and performance financial of its and 2019, December 31 at as ‘ the “Company”) (the Limited Milk Fan of position financial the view of fair and true give a statements financial accompanying the opinion, our In opinionOur in forming our opinion thereon, and we do not provide a separate opinion on these matters. these on opinion aseparate provide not we do and thereon, opinion our forming in and whole, as a statements financial Company’s of the audit of our context the in addressed were matters These period. current the of statements financial the of audit our in significance of were most judgment, professional our in that, matters those are matters Key audit Code. the with accordance in responsibilities ethical other our fulfilled have We statements. financial of the audit to (Act our relevant are 992) 2019 that Act, Companies 143 of the of section requirements independence the and Accountants for Board Standards Ethics International by the issued for Professional Accountants (including International Independence Standards) (the Code) of Ethics Code International the with accordance in Company of the We independent are Independence a basis for our opinion. provide to appropriate and sufficient is obtained we have evidence audit the that We believe report. our of section statements financial of the audit the for responsibilities under those standards described in are the Auditor’s further responsibilities (ISAs). Our Auditing on Standards International with accordance in audit our We conducted Basis for opinion Key audit matters Key audit policies. accounting significant of summary a include which statements, financial to the notes the and ended; then year the for flows of cash statement the ended; then year the for equity in of changes statement the ended; then year the for income of comprehensive statement the 2019; December 31 at as position of financial statement the express any form of assurance conclusion thereon. not do we and information other the covernot does statements financial the on opinion Our thereon. report auditor’s our and statements financial the include not does but Responsibility Social Board of Directors, Shareholding Macro-economic environment Distribution, and Corporate Corporate information, of Report the Directors, Corporate Governance, Financial highlights, The directors are responsible for the other information. The other information comprises information Other the trade receivables process. effectiveness of management’s controls over understanding and tested the operating statements. financial to the 14 note in disclosed are provisions impairment related and receivables trade gross The statements. financial tothe notes 2(h) the and in 2(g) notes provisions in are impairment the summarised judgements relating to the calculation of critical and provisions of the basis The rates. default historic their and risk on management’s assessment of customers’ based determined are falls short The scenarios. default various in falls short cash considers which (ECL) model loss credit expected the allowance using is determined impairment The significant judgement. requires impairment for of provisioning levels because the determination of appropriate matter akey audit as receivables trade of impairment for allowance We consider has been recognised. million of GH¢2.62 allowance loss impairment an of which million toGH¢20.28 amount 2019 December 31 at as receivable trade Gross million –GH¢2.62 receivables of trade impairment matter Key audit We updated our our updated We matter How our audit addressed the key audit disclosures. 9ECL of IFRS appropriateness We checked end. year the at of debtors recoverability the toassess debtors selected from receipts subsequent We tested management. by used assumptions and inputs verified the on based provision ECL the We recomputed the year. for provision loss credit of expected estimation the in used information forward-looking and management’s assessment of customer risk rates, default historic the We tested risk. default of customers’ assessment of management reasonableness the We checked balances. of debtor existence the todetermine amounts We circularised selected trade receivables judgement. provisioning requires for significant impairment of levels of appropriate determination the because matter akey audit as receivables of trade impairment for allowance We consider 15 FAN MILK LIMITED FINANCIAL STATEMENTS 16 FAN MILK LIMITED FINANCIAL STATEMENTS • • • control; of internal override the or misrepresentations, omissions, intentional forgery, involve collusion, may error, from fraud as resulting one for than higher is fraud from resulting misstatement amaterial detecting of not risk The opinion. our for basis a provide to appropriate and sufficient is that evidence audit obtain and risks, to those responsive procedures audit perform and error, or design to fraud due whether statements, financial of the misstatement of material risks the assess and Identify We also: audit. the throughout scepticism professional maintain and judgement professional we exercise ISAs, with accordance in audit of an part As statements. financial these of basis the on taken users of decisions economic the to influence expected be reasonably could they aggregate, the in or if, individually material considered are and error or fraud from arise can Misstatements exists. it when misstatement a material detect always will ISAs with accordance in conducted audit an that aguarantee not is but auditor’s that includes report our opinion. Reasonable assurance is a high level of assurance an error, or to issue and to fraud due whether misstatement, material from free are awhole as Our objectives are to obtain reasonable assurance about whether the financialstatements statements financial of the audit the for Auditor’s responsibilities process reporting financial Company’s the overseeing for responsible are directors The so. to do but alternative realistic no have or operations, to cease or Company the to liquidate intend either directors the unless of accounting basis concern going the using and concern to going related matters applicable, as disclosing, concern, agoing as to continue ability Company’s the assessing for are responsible directors the statements, financial the preparing In error. or to fraud due whether misstatement, material from free are that statements of financial preparation the to enable necessary is determine directors the as control (Act internal 992), 2019 such for and Act, Companies by the required manner the in and Standards Reporting Financial International with accordance in view fair and true give a that statements of financial preparation the for responsible are directors The statements financial the for directors of the Responsibilities regard. this in to report nothing have We fact. that to report we required are information, other of this misstatement amaterial is there that we conclude information, other the on performed we have work the on If, based misstated. materially to be appears otherwise or audit, the in obtained knowledge our or statements financial the with inconsistent materially is information other the whether consider so, doing in aboveand, identified information other the is to read responsibility our statements, financial of the audit our with connection In we are required to draw attention in our auditor’s report to the related disclosures in in disclosures related to the report auditor’s our in attention to draw we required are exists, uncertainty amaterial that Ifwe conclude concern. agoing as to continue ability Company’s the on doubt significant cast may that conditions or to events related exists uncertainty amaterial whether obtained, evidence audit the on based and, accounting of basis concern going of the use directors’ of the appropriateness the on Conclude accounting estimates and related disclosures made by the directors; of reasonableness the and used policies of accounting appropriateness the Evaluate control; internal Company’s the of effectiveness the on opinion an expressing of purpose the for not but circumstances, the in appropriate are that procedures audit to design order in audit to the relevant control of internal understanding an Obtain benefits of such communication. interest public the to outweigh expected be reasonably would so of doing consequences adverse the because report our in communicated be not should amatter that determine we rare circumstances, extremely in when, or matter the about disclosure public precludes the key We audit matters. in describe these our matters auditor’s law unless or report regulation therefore are and period current the of statements financial the of audit the in significance most of were that matters those we determine directors, the with communicated matters From the relatedapplicable, safeguards. where and independence, our on to bear thought be reasonably may that matters other and requirements regarding and independence have communicated with all them relationships ethical relevant with complied we have that astatement with directors the We provide also audit. our during we identify that control internal and timing of the audit and significant auditfindings, including any significant deficiencies in scope planned the matters, other among regarding, directors the with We communicate presentation. fair achieves that amanner in events and transactions underlying the represent statements financial the whether and disclosures, the including statements, financial of the content and structure overall presentation, the Evaluate Accra, Ghana 27 April 2020 April 27 Ghana Accra, Accountants Chartered PricewaterhouseCoopers (ICAG/F/2020/028) Amui (ICAG/P/1139). Oseini is report auditor’s independent this in resulting audit the on partner engagement The of account. books the with agreement in are income iii) the Company’s statement of financial position and Company’sstatement of comprehensive and books; of those examination our from appears as far Company, so kept by the been have of account books proper opinion our ii) in audit; of our purposes the for necessary were belief and knowledge of our best to the which explanations and information the all i) obtained we have that: We confirm matters. following the on report and we consider audit our out carrying in (Act that 992) 2019 requires Act, Companies The REQUIREMENTS REGULATORY AND LEGAL OTHER ON REPORT as a going concern; and concern; agoing as to continue to cease Company the cause may conditions or However, events future report. conclusions are based on the audit evidence obtained up to the date of our auditor’s the financialstatements or, if such disclosures are inadequate, our opinion.toOur modify 17 FAN MILK LIMITED FINANCIAL STATEMENTS 18 FAN MILK LIMITED FINANCIAL STATEMENTS least four times each year. each times four least at meets board The board. by the adopted policies and strategies the implements who chairman the from individual aseparate is director managing The progress. Company's to the contribution make a valuable to information business other and financial markets, industry, of the knowledge and experience have They judgement. independent of their exercise the with interfere materially could which any constraints, from free and of management Duker, independent are Percy David (which includes the Managing Director). The board except members, the Managing Director and directors executive two and directors non-executive three Chairman, of the consists board The prospects. and progress Company's of the assessment understandable and balanced a presents board The management. of executive activities monitoring for and Company the controlling and leading for direction, strategic Company's the setting for responsible is board The Directors Board of Dr. Charles Mensa Dr. Charles (Chairman)

Medical Clinic George H. O Thompson (Non-Executive Director) (Non-Executive OThompson H. George Clinic Medical Directorships: Shipping Company,Other Maersk Care Quality Committee Membership: Audit from George Mason University. from the George Washington University and a PhD in Economics Finance in degree amaster’s obtained Dr. Mensa States, United the In (IMF). Fund Monetary International the at and University, Mason George Choice, Public for Centre the at Associate aResearch as States United the in worked previously Dr. Mensa Association (GEA). Employers Ghana of the (AGI), President and Industries Ghana of Association of the President Vice also was He 1996. April in company the of VALCO joining Director since Resident the been had he 2004, October in of CEO position the to assuming Prior Africa. sub-Saharan in smelter aluminium (VALCO), largest the Company of Volta CEO Aluminium the as served Dr. Mensa policy advocacy. public in also and key industries leading in experience extensive an Limited Milk of Fan board to the brings Dr. Mensa Group. ABSA now Limited Ghana Bank of Barclays Chairman the formerly was and Limited Ghana Miller of SAB Chairman Board the also is He (IEA). Ghana Affairs, of Economic Institute of the Chairman and founder the is (age Ghanaian) 66, Mensa Dr. Charles (Non-Executive Director) (Non-Executive Director) George H. O Thompson Peace Ayisi-Okyere Ayisi-Okyere Peace

Committee membership: NIL Other Directorships: NIL Analysis. workload and job audit, including Resources Human on aConsultant is she Presently, Services.) Advisory Agricultural and Investment Injaro Company, ReInsurance Ghana Post, Ghana Fund, Investment and Development Export Ghana, Bank, (Barclays director non-executive as role her through bodies corporate and institutions of many governance good the ensured She Ministry. Sector Private the in Entrepreneurship and Innovation for Advisor Technical and Manager, Portfolio Government as such Ghana in sectors private and public the in roles other played she From 1999, operations. Group’s of the evaluation operational and audit governance, to the contributed She Director. Executive then and Advisor as Abidjan in Group Bank Development African the with worked she 1998 and 1987 Officer andCoordinator forthe Ghana Aid Programme. Between Economics of Chief position to the rose then and 1968, in Planning Economic and of Finance Ministry the from career her started Peace USA. the in College Babson prestigious the from Masters in Business Administration (Finance and Accounting option) Honours degree in Economics from the University of Ghana, and a an holds She Ghana. Coast, Cape in School High Girls’ Wesley at educated was (Mrs), Ghanaian) (aged 73, Ayisi-Okyere Peace Limited. Ghana Networks Aviat Directorships: Other Committee membership: Audit Fisher. & Spoor of firm law property intellectual African South Thompson & Associates which has a special relationship with the G.H. of firm law the runs currently He Ghana. in Embassy Arabian Saudi the and Limited International IP Sky Limited, Ghana Logistics Damco Limited, Ghana Terminals APM Limited, Ghana Maersk Ltd, Co. Electric Sanyo Corporation, Electric Westinghouse Limited, Company Volta for Aluminium acted has George companies. foreign and local to both law land and tax labour, corporate, law, banking, competition as such matters of civil range awide on advice and opinion rendered has he practice, private In offences. allied and treason with connection in 1982 March in Gambia The of Government by the Prosecutor Special appointed was He 1980. since practice law private in been has and Office)1979 in Trademark & (Patents of Commerce Department U.S. to the attached was He to 1980. 1977 from Department General’s Registrar the at worked and General Registrar Attorney/Assistant State Assistant appointed was He 1982. March in Gambia of The Bar to the 1976 and September in Bar Ghana to the called was He Solicitor. and Barrister-At-Law (Hons) (Hons) LLB (age B.A. 69, Ghanaian) H.O. Thompson George 19 FAN MILK LIMITED FINANCIAL STATEMENTS 20 FAN MILK LIMITED FINANCIAL STATEMENTS Directors Board of (Non-Executive Director) (Managing Director) Frederic Leblan Ziobeieton Yeo

studied Business English at Brighton University, in the United Kingdom. United the in University, Brighton at English Business studied also He Abidjan. in School Business ESCA the from Management General Mr. Yeo holds a post graduate degree in Marketing, Communications and d’Ivoire. Cote &Mather, Ogilvy at Manager Account Client Senior as 1999 in advertising in career his Mr. Yeo started Kenya. Unilever at divisions Care Oral and Foods for Africa for Director Marketing Kenya Senior as Nairobi in 3years spent also had He Durban. Africa South in Unilever at Foods Africa for Director Marketing Yeo a Senior was Unilever in Francophone West Africa. Before that Mr. of countries 16 of the Director Managing the was he to that Prior Ltd. Ghana marketing positions at Unilever, and recently as Managing Director of Unilever and development customer management, of general a number held has He Senegal, Kenya, Ghana and South Africa. d’Ivoire, Cote including countries several in positions different in experience of 20 years Mr. Yeo almost has management. product and development management, global marketing, operations, communications, brand general in experience Yeo,Mr. (age Ivorian), significant has 45, Ziobeieton Denmark. in A/S both Midco Ice A/S and Emidan (Denmark), International Milk Fan Nigeria, Milk Fan Coast, Ivory Togo, Milk Milk Fan Fan Directorships: Other Committee Membership: NIL Management School in France. Reims the from Program Co de -Sup Master also and of CIMA equivalent French the Financieres, et Comptables etudes D’ -Diploma DECF the holds He Finance, Danone Africa. President Vice as role current to his appointed was Frédéric 2018, January In growth. profitable astrong to deliver region the supporting team and process finance strengthen LATAM helped he where Waters for President Vice Finance appointed was Frédéric 2014, November In acquisitions. recent Africa Danone on particular in working Director Project Development of Corporate role the took he 2010, In 2007. in Sources Volvic Evian at Director Finance then Controller, Business Flow Cash Group Danone as promoted was he 2004 In London. in based Group, Foods of HP Manager Finance as 2001 in Danone joined Mr. Leblan positions. Finance UK Aluminates Lafarge at 1996 in career his started Mr. Leblan leadership in the food production industry. demonstrated of history administrative, financial andrisk management and a has Mr. 2019. Leblan October in director non-executive appointed was Africa Danone Finance, VP (age French), the is 45, who Leblan, Mr. Frédéric and Fan Milk International. Milk Fan and PLC (Nigeria) Milk Fan d’ivoire, Cote Togo, Milk Fan Milk Fan Directorships: Other Committee Membership: NIL 21 FAN MILK LIMITED FINANCIAL STATEMENTS 22 FAN MILK LIMITED FINANCIAL STATEMENTS at 2019 December 31, Shareholding Distribution as 10001 + 5001 – 10000 1001 – 5000 1 –1000 TOTAL holdings ofCategory 20 19 18 17 16 15 14 13 11 12 10 9 8 7 6 5 4 3 Sub total Others total Sub 2 1 Number right. voting equal have shareholders All 2019. 31, December at as shareholders largest twenty the are following The Total Peace Okyere Ayisi- Directors’ shareholding TotalGrand FR2C C/O FCP-RAIF- I(Lux)II SCGN/SSL BMO Re SSBTCB Limited Fund Balanced Ghana HFCN/EDC George Lloyd BMO For Cust &TAS SCGN/SSB Re:Aif Ggdp Re Guernsey Trust SCGN/Northern SCGN/BPSS Lux/ Aberdeen Standard SICA I/UC STD Noms/SANV/KAPFRGSTD Investin Pro Trust Russell For Cust As Trust and SSB SCGN/ STD Noms/BNYMSANV Re Prudential Africa Prudential Re Noms/BNYMSANV STD SCGN/Enterprise Life Ass. Co. Policy Holders Policy Co. Ass. Life SCGN/Enterprise SCGN/ Epack Investment STD Noms/Bnym Re Gothic Corp Mutima Capital Mutima Corp Gothic Re Noms/Bnym STD STD Noms/Bnym/Florida Retirement System Re-Aberdeen Cust &TAs SCGN/SSB Inv. –Aejm Llc Com. Mehwar Al For SCGN/SSBT Social And National Security Insurance Trust Fund Markets I -, Frontier SICAV Coeli Re Services Investor SCGN/RBC Lyf3 Fund Co. G.Inv Lloyd SCGN/SSB STD NOMS/Bnym Lux/East Spring Invest Sicav –Fis Sicav Invest Spring Lux/East NOMS/Bnym STD Consumer Fund Limited Africa, Arisag Shanghai Kong SCGN/Hong A/S International Milk Fan Name of shareholder shareholders N0. of of N0. 1,021 5,151 3,121 278 731 23,544,929 Number of 116,207,288 65,822,250 92,662,359 1,065,000 2,091,000 6,345,563 111,282,610 2,486,129 116,207,288 5,138,324 1,853,124 330,006 355,900 327,200 606,100 844,828 849,845 468,507 826,599 437,300 784,626 496,831 801,352 shares 731,875 1,834,262 2,242,138 Holding 848,278 Percentage Percentage holding 100.00 100.00 95.76 20.26 56.64 1,288 1,288 79.74 0.73 0.40 0.68 0.38 0.69 0.28 0.28 1.58 0.63 0.92 0.52 0.43 5.46 (%) 1.93 0.73 0.73 4.42 0.31 1.59 0.71 2.14 1.8

The notes on pages 27 to 56 are an integral part of these financial statements financial of these part integral an are to 27 56 pages on notes The (All amounts are in thousands of Ghana cedis) comprehensive income of Statement Basic and diluted (GH¢) share per Earnings Total comprehensive income Other comprehensive income Finance income profit Operating Profit for the year the for Profit Income tax expense Profitbefore income tax costs Finance –(net) income Other Administrative expenses Distribution costs Impairment of financial assets of financial Impairment profit Gross Cost of sales Cost customers with contracts from Revenue Note 12 8 6 9 4 5 5 5 5 7 Year ended December 31 (254,210) (50,656) (91,309) 424,486 25,016 170,276 (13,718) (1,800) 36,550 (2,765) 10,039 38,734 25,016 0.22 4,949 2019

(240,731) (76,366) (73,878) 389,507 12,899 18,001 (3,172) (1,134) 148,776 12,899 15,891 16,071 (642) 2018 1,314 0.11 - 23 FAN MILK LIMITED FINANCIAL STATEMENTS 24 FAN MILK LIMITED FINANCIAL STATEMENTS Signature: Dr. Charles Mensa of Director: Name by: behalf its on 2020 signed and 24th on April Directors of Board the approved by 56 were 23 to pages on statements financial The statements. financial of these part integral an are to 27 56 pages on notes The (All amounts are in thousands of Ghana cedis) Position ofStatement Financial TOTAL AND LIABILITIES EQUITY Total liabilities Dividend payable payables other Trade and Employee benefit obligation Lease liability Current liabilities Lease liability TOTAL ASSETS Current income tax asset Deferred income tax liability tax income Deferred Non-current liabilities Liabilities Retained earnings capital Stated to owners attributable Equity AND LIABILITY EQUITY Cash and cash equivalents Trade and other receivables other Trade and Inventories Current assets ASSETS Intangible assets Property, plant and equipment and plant Property, Non-current assets Right of use asset of use Right Signature: Note 16 20 25 25 25 24 10 18 19 14 21 15 13 17 11 3,726 3,726 187,380 187,380 Ziobeieton Yeo 183,846 39,032 3,038 259,591 101,216 249,591 375,819 375,819 96,606 116,228 10,000 191,973 11,295 96,363 3,717 47,024 15,012 1,390 2019 1,184 867 425 At December 31 8,580 326,402 326,402 45,969 3,065 234,575 196,784 224,575 83,247 50,400 91,827 196,921 137 129,481 10,000 23,769 80,182 - 8,580 9,343 2018 - - - (All amounts are in thousands of Ghana cedis) Changes In Equity of Statement Total comprehensive income year of the beginning At the 2019 31, December Year ended Transactions with owners: with Transactions Total comprehensive income year of the beginning At the 2018 31, December Year ended owners with Transactions At the end of the year of the end At the owners with Total transactions At the end of the year of the end At the capital Total

- - Stated Stated 10,000 10,000 - 10,000 10,000 - Retained earnings 224,575 224,575 25,016 25,016 249,591 - 211,676 12,899 - - - 25,016 234,575 234,575 259,591 221,676 12,899 Total 25 FAN MILK LIMITED FINANCIAL STATEMENTS 26 FAN MILK LIMITED FINANCIAL STATEMENTS (All amounts are in thousands of Ghana cedis) Statement of Cash Flows Net cash used in investing activities investing in used cash Net equivalents cash and cash on changes rate exchange of Effects year of the beginning the at equivalents cash and Cash (Decrease)/ increase in cash and cash equivalents activities financing in used cash Net Dividend paid Lease payments activities financing from flows Cash Proceeds from sale of property, plant and equipment and plant of property, sale from Proceeds Purchase of intangible assets Cash and cash equivalents at the end of the year of the end the at equivalents cash and Cash Purchase of property, plant and equipment and plant of property, Purchase activities investing from flows Cash Net cash inflow from operating activities operating from inflow cash Net Tax paid received Interest Interest paid Interest Cash generated from operations activities operating from flows Cash Note 10 20 15 25 22 10 21 11 8 7 7 14,287 (13,898) (1,023) - (27,163) 39,032 (2,266) (9,258) 45,969 (6,937) 7,984 (1,022) 14,559 4,949 (996) 2019 (27) At December 31 (39,607) 64,901 (53,875) 14,268 (12,349) (39)

15 20,699 45,969 25,255 77,085 (1,134) (39) 1,299 2018 - - 1. General information General 1. Notes (i) New(i) and amended standards adopted by the company (a) Basis of preparation of significant accounting2.Summary policies periods and are not expected to significantly affect the current or future periods. periods. future or current the affect to significantly expected not are and periods prior in recognised amounts the on any impact have not above did listed amendments other The 25. note in disclosed is This 2019. January on 1 standard new the applying initially of effect cumulative the recognised but retrospectively rules new the to adopt elected Company The 16. IFRS of adopting aresult as policies accounting its to change had Company The Airport CommercialAirport Area, Accra. Link, Liberation South No.Plot 9, Building, Oyeeman Grand at located is office registered The Ghana. in domiciled and Exchange Stock Ghana the (Act on 992), 2019 listed Act, Companies the under incorporated company liability limited apublic is Company The agents. and distributors of independent anetwork through drinks fruit and products dairy sells and distributes produces, Company”) (“the Limited Milk Fan • Prepayment Features with Negative Compensation – Amendments to IFRS 9 to IFRS –Amendments Compensation Negative with Features • Prepayment • Plan Amendment, Curtailment or Settlement – Amendments to IAS 19 Tax over Income Treatments. Uncertainty 23 • Interpretation Cycle –2017 2015 Standards to IFRS Improvements • Annual Leases 16 •IFRS 2019: 1January commencing period reporting annual their for time first the for amendments and standards following the applied has Company The 3. Note in disclosed are statements financial the to significant are estimates and assumptions where areas or complexity, or of judgement degree a higher involving areas year.The financial the during expenses and revenues reported the and period of the end the at liabilities and assets of amounts reported the affect that made are estimates and judgements certain makes management policies, accounting these applying In policies. accounting important most the to be following the considers Company (Act 992). 2019 The Act, Companies of the requirements the IC) (IFRS and Committee Interpretations IFRS by the issued interpretations (IFRS) and Standards Reporting The financialstatements havebeenprepared in accordancewith InternationalFinancial basis. cost historical the on prepared been have statements financial The years presented, unless otherwise stated. the to all applied consistently been have policies These below. out set are statements financial of these preparation the in applied policies accounting principal The 27 FAN MILK LIMITED FINANCIAL STATEMENTS 28 FAN MILK LIMITED FINANCIAL STATEMENTS Notes (b) Foreign currency translation not yet interpretations and New adopted standards (ii) (c) Property, plant and equipment (c) equipment and plant Property, estimated useful lives, as follows: as lives, useful estimated over their cost their to allocate method straight-line the using calculated is assets other on Depreciation lease. of the portion unexpired over the depreciated is land Leasehold assets. of the completion to the attributable directly costs other and fees professional includes Cost loss. impairment any recognised less cost at carried are of construction course the in Assets which they are incurred. in period financial the during loss or to profit charged are maintenance and repairs other All derecognised. is part replaced of the amount carrying The reliably. measured be can item the of cost the and Company the to flow will item the with associated benefits economic future that probable is it when only appropriate, as asset, separate a as recognised or amount carrying asset’s the in included are costs Subsequent items. of these acquisition the depreciation.less Historical cost includes the expenditure that is directly to attributable cost historical at position of financial statement the in stated are purposes administrative for or of goods, supply or production the in use for held equipment and plant Property, expenses’. or income ‘other within loss or profit in presented are losses and gains exchange foreign other All cost’. or income ‘finance within loss or profit in presented are equivalents cash and cash and to borrowings relate that losses and gains exchange Foreign loss. or profit in recognised are currencies foreign in denominated liabilities and assets of monetary rates exchange year-end at translation the from and transactions of such settlement the from resulting losses and gains exchange Foreign transactions. of the dates the at prevailing rates exchange Foreign currency transactions are translated into the currency functional using the Transactions and balances currency.functional Company’s the is which (“GH¢”) Cedis Ghana in presented are statements financial The economic environmentprimary in which operates currency’). functional the entity (‘the the of currency the using measured are statements financial the in included Items Functional and presentation currency in the current or periods future and on reporting foreseeable future transactions. entity the on impact amaterial to have expected not are standards These group. by the adopted early been not have and periods reporting 2019 December 31 for mandatory not are that published been have interpretations and standards accounting new Certain (continued) Notes (e) of Impairments non-financial assets (d) assets Intangible Leasehold land Distribution trucks Motor vehicles Furniture and fittings Computers Deep freezers and bicycles machinery and Plant Buildings cash flows have not been adjusted. adjusted. been not have flows cash future of estimates the which for asset the to specific risks the and of money value time the of assessment market current the reflects ratethat discount apre-tax using value present their to discounted are flows cash future estimated the value-in-use, assessing In disposal. of costs the less parties, willing and knowledgeable between transaction arm’s length an in asset of the sale the from obtainable amount the as determined is to sell costs less value Fair use. in value and to sell costs less value of fair higher the is amount Recoverable which asset the belongs. (CGU) unit to generating cash of the amount recoverable the estimates Company the assets, from other areindependent that flows cash generate not does asset the Where impairment at date. each reporting the of reversal possible for are reviewed impairment suffered that assets Non-financial (if any). loss impairment of the extent the to determine order in estimated is asset the of amount recoverable the exists, indication any If such loss. impairment an suffered have assets those that any is indication there whether to determine assets tangible of its amounts carrying the reviews Company the date, reporting of each end At the years). (three lives useful estimated their over amortised are costs These software. specific the to use bring and to acquire incurred costs of the basis the on capitalised are licences software computer Acquired gains/(losses)loss. or profit other in within recognised are and amount carrying the with proceeds the by comparing determined are disposals on losses and Gains estimated recoverable amount. its than greater is amount carrying asset’s the if amount recoverable to its immediately down written is amount carrying Any asset’s recoverable. be not may amount carrying the that indicate circumstances in changes or events whenever impairment for reviewed are equipment and plant Property, period. reporting of each end the at appropriate if adjusted and reviewed are lives useful and values residual assets’ The aretrucks included in motor vehicles. distribution of costs The fittings. and furniture and computer bicycles, and freezers deep of depreciation and cost the are 10 note in others and machinery plant, the in Included (continued) Over the unexpired portion of the lease of the portion unexpired the Over 15 - 33 years -33 15 10 years 10 8 years 8 5 years 5 years 5 years 5 3 years 3 29 FAN MILK LIMITED FINANCIAL STATEMENTS 30 FAN MILK LIMITED FINANCIAL STATEMENTS Notes • • met: are below outlined criteria both when cost’ amortised at assets ‘financial as classified are instruments Financial cost’. amortised at measured assets ‘financial as assets financial its classifies Company The customers. with contracts from receivables trade is which model loss credit expected the to subject is that asset of financial type one has Company The Classification (i) assets (g) Financial • • where: However, exceptions are used. there when expensed is cost their repairs, and maintenance for used usually are they As inventories. as treated generally are parts Spare distribution. and selling marketing, in incurred to be costs and of completion costs estimated all less of business, course ordinary the in price selling estimated the is value realisable Net costs. borrowing excludes It capacity. operating normal on based overheads, production related and costs direct labour, other direct materials, raw comprises progress in work and goods of finished cost The costs. average weighted the using determined are of inventory items of individual Cost value. realisable net and of cost lower the at stated are Inventories Inventories(f) loss. or profit in immediately expense an as recognised is loss impairment An amount. recoverable to its (CGU) reduced asset is of the amount carrying the amount, carrying the than less to be (or estimated is asset of an CGU) amount recoverable If the derecognition is recognised directly in profit or loss and presented in other income/(expense) in other presented and loss or profit in directly recognised is derecognition on arising loss or gain Any method. rate interest effective the using income finance in included is assets financial these from income Interest method. rate interest effective the using cost amortised at measured are assets these recognition, to initial Subsequent asset. financial of the acquisition to the attributable directly are that costs transaction plus value fair its at asset financial its measures Company the recognition, At initial (iii) Measurement ownership. of rewards and risks the all substantially transferred has Company the and transferred been have or expired have assets financial the from flows cash to receive rights the when derecognised are assets Financial asset. the sell or to purchase commits Company the which on date the trade-date, on are recognised assets of financial sales and purchases way Regular derecognition and Recognition (ii)

interest. and principal of payments solely are that flows to cash rise give terms contractual the and flows; cash contractual the to collect is objective whose model abusiness within held is asset the recorded as property, plant and equipment. and plant property, as recorded are performance, improve its to substantially or life useful its to extend as so equipment, and plant of property, item an with connection in only used be can that parts Spare year, one than more during them to use expects company the when equipment and plant property, as recorded are parts spare Major (continued) cash short falls in various default scenarios. scenarios. default various in falls short cash by considering model loss credit expected the using determined is provision impairment The impairment. for provision less method interest effective the using cost amortised at measured subsequently and value fair at initially recognised are Trade receivables assets. non-current as presented are they If not, assets. current as classified are they less, or year one in expected is Ifcollection of business. course ordinary the in sold merchandise for customers from due amounts are Trade receivables receivables (h) Trade loss. impairment identified no was 9, of IFRS there requirements impairment the to subject also are parties related from due amounts and equivalents cash and cash While (i) Cash and cash equivalents cash and Cash (i) simultaneously. liability the settle and asset the realise or basis anet on to settle intention an is there and amounts recognised the to offset right enforceable legally is a there when position financial of statement the in reported amount net the and offset are liabilities and assets Financial (iv) Offsettingfinancial instruments loss. or profit in item line separate as presented are losses Impairment losses. and gains exchange foreign with together Notes receivables. On that basis, the loss rates as at December 31, 2019 is as follows: as is 2019 31, December at as rates loss the basis, that On receivables. the settle to customers the of ability the affecting factors macroeconomic on information forward-looking and current to reflect adjusted are rates loss historical The experienced. the payment profiles of sales customers andthe corresponding historical credit losses on based are losses impairment calculating in used rates loss expected Company’s The days. 180 exceeding receivables on loss impairment a100% recognises Company The loss. or profit in recognised is loss impairment recognised previously of the reversal the rating), credit debtor’s the in improvement an as (such recognised was impairment the after event occurring to an objectively related be can decrease the and decreases loss impairment of the amount the period, If, asubsequent in or loss. profit in recognised is loss of the amount the and reduced is asset of the amount carrying The receivables. of the recognition initial from recognised to be losses lifetime expected requires which IFRS by 9, permitted approach simplified the applies Company the only, receivables trade For risk. credit in increase asignificant been has there whether on depends applied methodology impairment The cost. amortised at carried assets its with The Company on a assesses forward-looking basis credit expected the associated losses (v) Impairment Loss allowance Loss (continued) 0.495% 1 to 30 1 to30 days 31 to 180 to180 31 50% days More than 180 100% days 31 FAN MILK LIMITED FINANCIAL STATEMENTS 32 FAN MILK LIMITED FINANCIAL STATEMENTS Notes (k) Current and deferred income tax equity. in capital’ as ‘stated classified are shares of ordinary proceeds The Stated capital (j) overdrafts. term highlyshort liquid investments with original maturities of three months or and less bank other banks, with call at held deposits hand, in cash includes equivalents cash and Cash (l) Financial liabilities same tax authority on the same taxable entity. entity. taxable same the on authority tax same by the levied tax to income relates liabilities tax deferred the and assets tax deferred the and liability tax current against assets tax current off to set right enforceable a legally has Company the when only offset are liabilities tax deferred and assets tax Deferred utilised. be can losses tax unused and credits tax unused of carry-forward the and differences, probable that taxable profitwill be available against which the deductible temporary is it that extent to the only losses, tax unused and credits tax of unused carry-forward differences, temporary deductible all for recognised are assets tax income Deferred end. year at enacted substantively or enacted been have that laws and rates tax using determined is tax income Deferred loss. or profit taxable nor profit accounting the neither affects transaction, of the time the at and, combination abusiness not is that atransaction in liability or asset of an or of goodwill recognition initial the from arises liability tax deferred the where except differences, temporary taxable all for recognised are liabilities tax Deferred purposes. financial reporting for amounts carrying their and liabilities and of assets base tax the between arising differences temporary all on method liability the using recognised is tax income Deferred Deferred income tax financialposition date. of statement by the enacted substantively or enacted those are amount the compute to used laws tax rateand tax The authorities. taxation to the paid to be expected amount the at measured are periods prior and current the for liabilities tax Current Current income tax respectively. equity, in directly or income comprehensive other in recognised also is tax the case, this In equity. in directly or income comprehensive other in recognised items to it relates that extent the to except loss, or profit the in recognised Tax tax. is income deferred and current comprises period the for expense tax The expense tax Income liabilities include, trade and other payables. financial company’s The costs. transaction attributable directly minus borrowings, and loans of case the in and, value at fair initially are recognised liabilities financial All Initial recognition and measurement (continued) a gain or loss is recognised at the time of the modification. of the time the at recognised is loss or a gain amounts iscarrying recognised in the income statement. For non-substantial modifications, respective the in difference the and liability, of anew recognition the and liability original the of derecognition asa treated is modification or exchange an such modified, substantially are liability existing an of terms the or terms, different substantially on lender same the from another by is replaced liability financial existing an When expires. or cancelled or discharged is liability the under obligation the when derecognised is liability A financial Derecognition of financial liabilities cost. amortised at measured subsequently are liabilities Financial Notes Pension obligation Pension (p) Employee benefits aprovision. as recognised is terms sales the under products expired or damaged to replace obligation Company’s The practice. market with consistent is which days, 8to 45 of between term acredit with made are sales the as present deemed is of financing element No period. the during paid are period reporting of the end the until made to sales relation in to customers payable discounts volume All occur.not will reversal asignificant that probable highly is it that extent to the recognised only is revenue and method, value expected the using discounts, the for provide and to estimate used is experience Accumulated discounts. volume estimated the net of contract, the in specified price the on based recognised is sales these from Revenue aggregate monthly sales. The product disaggregation is disclosed in Note 4. on based discounts volume retrospective with sold often are products The distributors. and agents the to transferred been not have loss and obsolescence of risks The location. specific to the shipped been have products the when occurs Delivery products. of the acceptance wholesaler’s the affect could that obligation unfulfilled no is there and products, the to sell price over the discretion full have not do agents Sales customer. to the delivered are products the when being transferred, has products of the control when recognised are Sales distributors. other and agents sales through products of dairy a range sells and produces Company The time in apoint at of goods transfer the from revenue derives company The (o) Revenue recognition by the Company’s shareholders. approved are they which in period the in to equity charged are shares ordinary on Dividends (n) Dividends method. interest effective the using cost amortised at measured subsequently and value fair at initially recognised are Trade payables liabilities. non-current as presented are they Ifnot, less. or year one within due is payment if liabilities current as classified are payable Accounts suppliers. from of business course ordinary the in acquired been have that services or goods for to pay obligations are Trade payables (m) payables Trade (continued) 33 FAN MILK LIMITED FINANCIAL STATEMENTS 34 FAN MILK LIMITED FINANCIAL STATEMENTS Notes to passage of time is recognised as administrative expense. administrative as recognised is of time to passage due provision the in increase The obligation. the to specific risks the and of money value time the of assessments market current reflects rate that a pre-tax using obligation the to settle required to be expected expenditures of the value present the at measured are Provisions estimated. reliably been has amount the and obligation; the settle to be required will of resources outflow an that probable is it events; of past aresult as obligation constructive or legal apresent has Company the when recognised are Provisions (q) Provisions disclosures. to 24 Note Refer further for of service. periods and departures of employee experience levels, salary and wage future to expected given is Consideration period. reporting of the end to the up by employees provided of services respect in made to be payments future of expected value present the as measured therefore are They service. related the render employees the which in period of the end the after 12 months within wholly settled to be expected not are awards service long for Liabilities years. of 10 excess in of service period for rewarded are Employees service. dedicated and continuous for of staff reward members and to recognise employees to all awards gives Company The awardsLong service due. are they when expense benefit employee as recognised are contributions The service. employee to relating benefits the employees all pay to assets sufficient hold not does fund the if contributions further to pay obligations constructive or legal no has Company The entity. separate into a contributions fixed pays Company the which under plan apension is plan pension contribution defined A plan. pension contribution adefined operates Company The Operating segments are reported in a manner consistent with the internal reporting provided provided reporting internal the with consistent amanner in reported are segments Operating (u) Segment reporting Company. the against occurs decision adverse an if to make required be could Company the that payments future of all amount undiscounted potential the as determined is amount The estimated. reasonably be can and probable considered is aloss when recorded are liabilities for Provisions Company. of the control the within wholly not are which events future which will be confirmed only onthe occurrence ornon-occurrence of one ormore uncertain of existence the events, past from arise that liabilities potential are liabilities Contingent (t) Contingent liabilities material. is effect the and statements financial to the directly they relate that extent the to only reflected are date reporting to the subsequent Events date (s) reporting after Events dilutive potential shares. ordinary all of effects the for outstanding shares of ordinary number average weighted the and shareholders ordinary to attributable loss or profit the by adjusting determined EPS is Diluted year. the during issue in shares of ordinary number average weighted by the company of the holders equity to attributable profit the by dividing calculated are share per earnings Basic share per (r) Earnings (continued)

lessee’s incremental borrowing rate applied to the lease liabilities on 1 January 2019 was 18%. was 2019 1January on liabilities lease to the rate applied borrowing incremental lessee’s average weighted The 2019. of 1January rate as borrowing incremental company’s the using discounted payments, lease remaining of the value present the at measured were liabilities These 17 Leases. IAS of principles the under leases’ as ‘operating classified been previously had which to leases relation in liabilities lease recognised Company the 16, of IFRS adoption On standard. the in provisions transition specific the under permitted as period, reporting 2018 the for comparatives restated not has but 2019, 1January from retrospectively Leases 16 IFRS 2(a)(i) note in adopted has indicated As Company the above, (v) Leases segments. operation of the performance the assessing and of resources allocation the for responsible is decision-maker operating chief The decision-maker. operating chief to the Notes permitted by the standard: standard: by the permitted expedients practical following the used has Company the time, first the for 16 IFRS applying In Practical(i) expedients applied • • • • •

extend or terminate the lease. lease. the terminate or extend to options contains contract the where term lease the determining in hindsight using initial application, and and initial application, of date right-of-use the at of the asset measurement the for costs direct initial excluding 1 January 2019 as short-term leases leases short-term as 2019 1 January at as 12 months than of less term lease aremaining with leases operating for accounting 2019 1January at as contracts onerous no were –there review impairment an performing to alternative an as onerous are leases whether on assessments previous on relying characteristics characteristics similar reasonably with of leases rate to aportfolio discount asingle applying (continued) 35 FAN MILK LIMITED FINANCIAL STATEMENTS 36 FAN MILK LIMITED FINANCIAL STATEMENTS Notes (ii) The Company’s leasing activities and how these are accounted for for accounted are these how and activities leasing Company’s (ii) The (v) Leases (continued) term leases are leases with a lease term of 12 months or less. less. or of 12 months term alease with leases are leases term Short- loss. or profit in expense an as basis astraight-line on recognised are of buildings leases short-term with associated Payments basis. astraight-line on term lease the and life useful asset's of the shorter over the depreciated generally are Right-of-use assets Right-of-use assets are measured at cost comprising the following: following: the comprising cost at measured are Right-of-use assets period. each for liability of the balance remaining the on of interest rate periodic constant a produce as to so period lease the over loss or to profit charged is cost finance The cost. finance and principal between allocated are payments Lease reflect changes in financing conditions since financing third wasparty received. to adjusted point, starting as a lessee individual the by received financing third-party recent uses possible, where Company the rate, borrowing incremental the To determine economic environment with similar and conditions. terms, security right-of-use asimilar in to the value asset of similar asset an to obtain necessary funds the to borrow to pay have would lessee individual the rate that the being used, rate is borrowing incremental lessee’s Company, the the in leases for case the generally is which determined, readily be ratecannot Ifthat lease. the in rate implicit interest the using discounted are payments lease The liability. of the measurement the in included also are options extension certain reasonably under made to be payments Lease Lease liabilities include the net present value of the following lease payments: payments: lease following of the value present net the include liabilities Lease basis. value apresent on measured initially are alease from arising liabilities and Assets Company. by the use for available is asset leased the which at date the at liability acorresponding a right-of-use and asset as are recognised leases 2019, January From 1 leases. operating or leases finance either as classified were equipment and plant property, of year,leases financial 2018 the Until borrowing purposes. for security as used be not may assets Leased lessor. by the held are that assets leased the in interests security the than other any covenants impose not do agreements lease The conditions. and terms of different a range contain and basis individual an on negotiated are terms Lease component. lease asingle as these for accounts instead and components non-lease and lease to separate not elected has it a lessee, is Company the which for estate of However, real leases for prices. stand-alone relative their on based components non-lease and lease to the contract the in consideration may contain both lease and The Company non-lease components. allocates the Contracts (iii) below. in described as options extension have may but of 5years, periods fixed for made typically are contracts Rental warehouse. one leases Company The • • •

incentives received • any initial direct costs, and • restoration costs. costs. •restoration and costs, direct •any initial received incentives any lease less date commencement the before or at made payments any lease liability of lease measurement initial of the amount the receivable fixedpayments (including in-substancefixed payments), less anylease incentives (continued) 3. Critical accounting estimates and judgements judgements and estimates accounting Critical 3. options termination and (iii) Extension Notes the appropriate discount rate, the Company considers the interest rates of government of government rates interest the considers Company the rate, discount appropriate the determining In obligations. benefit employee the settle to be required to expected outflows cash future of estimated value present the to determine applied is ratethat interest the year. is of each This end the rate at discount appropriate the determines Company The obligations. benefit of employee amount carrying the impact will assumptions these in Anychanges rate. inflation rate and turnover the include cost net the determining in used assumptions The of assumptions. anumber using basis actuarial an on determined are that of factors number on a depends obligations benefit employee of the value present The Employee benefit obligations period. reporting of each end the at estimates looking forward as well as conditions market existing history, past Company’s the on based calculation, impairment to the inputs the selecting and assumptions these making in judgement uses Company The rates. loss expected and default of risk about assumptions on based are assets financial for allowances loss The receivables of account Impairment such determination is made. which in period the in provisions tax income deferred and tax income current the impact will differences such recorded, initially were that amounts the from different are matters of these outcome final the Where due. be will taxes additional of whether estimates on based issues audit tax anticipated for liabilities recognises Company The of business. course the during uncertain is determination tax ultimate the which for calculations and transactions many are There taxes. income for provision the determining in is required judgement Significant Income taxes GH¢287,420) lower. or higher (2018: GH¢304,370 estimated an be would equipment and property of the amount carrying the estimates, management’s from by 1% differ equipment and property of the lives useful 2(c). note in out set are estimated used rates the The Should equipment. and plant property, for rates depreciation determining in directors by the made are estimates Critical equipment and plant of property, lives useful Estimated policies. accounting Company’s the applying in judgement exercise estimates may significantlyfuture affect operating Management results. alsoneeds to subject to change as new information available becomes and changes subsequent to these are estimates addition, In provision. estimated originally the from different be may losses the circumstances. Because of the inherent uncertainties in this evaluation process, actual under reasonable to be believed are that events of future expectations including factors, other and experience historical on based are and evaluated continually are Estimates Company and the respective lessor. the by both exercisable solely are held options extension The operations. Company’s the in used assets the managing of in terms flexibility operational to maximise used are These leases. of property anumber in included are options termination and Extension (continued) 37 FAN MILK LIMITED FINANCIAL STATEMENTS 38 FAN MILK LIMITED FINANCIAL STATEMENTS Notes termination options. and extension exercise to terms lease in made no revisions was year,there financial current the During lessee. the of control the within is that and assessment, this affects which occurs, circumstances in change significant or a event asignificant if revised only is certainty of reasonable (or assessment to exercise The exercise) not it. obliged becomes Company the or (or exercised exercised) not actually is option an if reassessed is term lease The disruption. business or cost significant without assets the replace could Company the because liability, lease the in included been not have warehouse in options Extension asset. leased the to replace required disruption business and costs the Company considers otherOtherwise, factors including historical lease durations and the relevant: most the normally are factors following the warehouses of the lease For (or terminated). not extended to be certain reasonably is lease the if term option. options Extension (or termination periods after options) are only included in the lease atermination exercise not or option, extension an to exercise incentive economic an create that circumstances and facts all considers management term, lease the determining In term lease the determining in judgements Critical Leases 24. note in disclosed is information Additional conditions. market current on part in based are obligations pension for key assumptions Other obligation. pension related of the terms the approximating to maturity terms have that and paid, be will benefits the which in currency the in denominated are that bonds • •

Company is typically reasonably certain to extend (or terminate). not to extend certain reasonably typically is Company the value, remaining asignificant to have expected are improvements If any leasehold (or terminate). not to extend certain reasonably typically is Company the extend), not to terminate (or penalties significant are If there (continued) Notes Net sales customers with contracts from Revenue 4. Dairy time. in apoint at of goods transfer the from revenue derives company The type by product sales Gross Employee benefit expense Ice cream Juice 5. Expenses by nature Expenses 5. Rebates Gross sales Raw materials and consumables Information technology expenses Transportation expenses Donations Directors’ emoluments Auditor’s remuneration Technical fees service Sales promotion expenses and advertising Insurance ofAmortisation intangible assets (Note 11) 10) (Note equipment and plant property, on Depreciation Impairment charge (Note 14) (Note charge Impairment Fuel Utilities Vehicle running expenses maintenance and Repairs 25) (Note asset right-of-use on charge Depreciation (continued) 466,245 424,486 424,486 360,774 76,025 (41,759) 174,965 29,446 23,639 30,437 31,694 47,483 12,563 13,987 1,800 5,459 2019 8,747 2,914 1,252 1,733 240 786 292 931 1 336,406 389,507 389,507 (37,038) 426,545 174,990 46,883 24,946 23,365 16,867 12,548 28,742 65,193 19,142 5,564 5,665 2,555 2018 8,133 1,787 854 642 237 211 - 1 39 FAN MILK LIMITED FINANCIAL STATEMENTS 40 FAN MILK LIMITED FINANCIAL STATEMENTS Notes The total number of staff employed by the Company by the end of the year was 623 (2018: 891). (2018: 623 was year the of end the by Company the by employed of staff number total The Impairment loss on production plant (Note 10) (Note plant production on loss Impairment Consultancy expenses Exchange loss Environmental and social responsibility expenses Rent expenses services Security Communication expenses Outsource labour cost (continued) by nature Expenses 5. Long awards service Bonuses Other expenses Other Medical expenses Other factory expenses factory Other Provident fund costs Pension costs Wages, salaries and allowances Employee benefit expense comprise: costs. distribution in classified been has asset right-of-use on charge Depreciation Administrative expenses assets of financial Impairment Distribution costs of sales Cost follows: as income of comprehensive statement the in disclosed been have by nature Expenses (continued) 254,210 397,975 397,975 50,656 91,309 41,968 2,047 47,483 3,509 1,800 3,468 3,503 11,316 4,592 2,329 1,390 2,687 3,784 3,401 1,296 2019 2019 1,210 35 - 240,731 3,589 46,883 391,617 391,617 76,366 10,346 73,878 1,915 41,561 5,520 9,246 2,536 3,407 1,480 2,764 2,748 2018 2018 1,832 2,154 1,122 642 94 - Notes using the statutory income tax rate as follows: as rate tax income statutory the using arise would that amount theoretical the from differs tax income before profit Company’s the on tax The Sale of empty bags and scraps and bags of empty Sale 10) (Note equipment and plant property, of disposal on Profit -(net) income Other 6. Bad debts recovered debts Bad Exchange loss Exchange gain Rent income Rent Interest expense on agents’ savings costs Finance 8. banks with accounts call and deposit fixed on income Interest equivalents cash and cash on gain Exchange Finance income Interest on lease liabilities (Note 25) (Note liabilities lease on Interest loan staff on cost Finance Deferred income tax (Note 18) facility credit on cost Finance Current income tax (Note 20) expense tax 9. Income flows. cash of operating out interest topay entity of an ability the determining in users assist to flows cash operating under classified been has paid Interest flows. cash operating as assets financial on received interest topresent chosen has Company The agents. by earned rebates representing savings) (agents company by the held amounts on paid is Interest of 18%. rate interest an attracted which bank a local with of GH¢75,000,000 facility undrawn an held company the 2019, December 31 at As (continued) 10,039 2,715 11,003 13,718 4,949 4,949 898 1,368 2,765 2019 (198) 8,157 936 798 481 195 151 18 - 3,172 (1,667) 1,134 18,001 13,075 4,839 3,403 1,084 1,299 2018 1,314 1,134 256 183 15 - - -

41 FAN MILK LIMITED FINANCIAL STATEMENTS 42 FAN MILK LIMITED FINANCIAL STATEMENTS Notes Closing net book amount book net Closing Depreciation charge disposal Depreciation released on at cost Disposals Transfer Cost 2019 31, At December Additions Accumulated depreciation Net book amount book Net Non-qualifying assets Non-qualifying determining taxable profit in deductible not Expenses 25%) (2018: 25% at Tax charged follows: as rate tax income statutory the using arise would that amount theoretical the from differs tax income before profit Company’s the on tax The (continued) expense tax 9. Income Opening net book amount book net Opening 2019 Year ended December 31, equipment and plant Property, 10. 20%) (2018: 2019 December 31 at as 35% was rate tax effective The Income not taxable Cost 2019 1, At January Net book amount book Net timingOther differences Accumulated depreciation (continued) hold land Lease- (73) 3,830 3,830 2,964 2,964 (866) (939) 2,891 2,891 - - - - Buildings (11,087) (9,266) 45,663 44,624 36,397 36,397 (2,221) (1,249) 33,537 33,537 400 210 - vehicles (30,858) (27,370) (5,624) Motor (2,976) 49,639 10,472 14,773 14,773 42,143 18,781 18,781 2,136 - machinery and others (102,672) (80,979) 221,980 (22,519) 132,340 132,340 119,308 119,308 213,319 9,575 (914) 826 - progress (20,257) work in work (2,039) (520) (4,353) 13,718 38,734 12,863 12,863 12,863 10,310 10,310 10,310 27,163 9,684 2,877 3,716 2019 - -

(118,481) 332,936 196,784 196,784 187,380 187,380 315,265 (9,492) (1,692) 16,071 27,163 Total 3,362 4,018 2018 3,172 846 - - - - - Notes Profit on disposal on Profit Sale proceeds depreciation Accumulated Net book amount book Net depreciation Accumulated Cost equipment and plant property, of disposal on Profit amount book Net At December 31, 2018 Cost 2018 31, At December amount book net Closing loss Impairment Depreciation charge disposal Depreciation released on Transfer Additions amount book net Opening 2018 31, December ended Year amount book Net depreciation Accumulated Disposals at cost Disposals Cost 2018 1, At January 10.Property, plant and equipment (continued) (continued) Leasehold 3,830 2,964 2,964 (866) 2,433 2,433 (783) 3,216 land (83) 614 - - - - Buildings (9,266) 28,590 45,663 20,857 20,857 36,397 36,397 (1,635) (7,733) 17,176 (103) 102 - - vehicles (27,370) (24,217) 14,773 (4,386) Motor Motor 40,776 (1,638) 16,559 16,559 14,773 42,143 3,005 1,233 - - machinery machinery and others 98,085 (62,096) (80,979) (22,638) (10,346) 132,340 132,340 98,085 213,319 68,026 160,181 (4,542) Plant, Plant, 3,755 - - progress (8,157) Capital Capital (88,821) work in in work (14,287) (3,362) 45,256 45,256 45,256 53,875 10,310 10,310 10,310 9,492 6,130 2019 - - - - - (10,346) (118,481) (94,829) ( 13,075) (14,268) (28,742) 278,019 196,784 196,784 315,265 (5,090) 183,190 183,190 (6,283) 53,875 5,090 Total 6,283 2018 1,193 - 43 FAN MILK LIMITED FINANCIAL STATEMENTS 44 FAN MILK LIMITED FINANCIAL STATEMENTS Notes Additions At 1 January Cost 11. Intangible assets Consumables At December 31 charge Amortisation At 1 January Amortisation At 31 December Goods in Transit. in Goods impacts also This material. of raw purchase to forward related 2019 in balance Inventory in Increase GH¢2,065,805). (2018: 2019 December 31 ended year the during inventories damaged and expired as loss or toprofit charged was of GH¢1,699,593 amount An million). GH¢174.9 (2018: million to GH¢174.96 amounts year the during income of comprehensive statement tothe charged of inventories cost The transit in Goods progress in Work Finished goods materials Raw 13. Inventories13. basic per earnings share. as same the are share per earnings diluted hence issues, rights potential or options share no are There Basic and diluted per earnings share (GH¢) Number of ordinary shares outstanding Profit for the year the for Profit share per Earnings 12. 31 December at amount book Net (continued) 116,207,288 96,606 (292) (1,480) 25,016 47,254 (1,188) 12,555 31,901 2,347 2019 2019 1,022 1,325 4,791 0.22 867 105 116,207,288 50,400 16,980 12,899 (1,188) (211) 17,972 9,839 5,073 2018 2018 (977) 1,325 1,325 536 0.11 137 - Notes impairment loss was identified. material 9, no of IFRS requirements impairment tothe subject also are equivalents cash and cash While at call Deposits Prepayments staff from Due Impairment charge for the year (Note 5) (Note year the for charge Impairment recovered debts Bad receivablesOther receivables other and Trade 14. Due from related parties (Note 23) (Note parties related from Due –net Trade receivables Less: Provision for impairment losses Trade receivables Cash in hand and at bank at and hand in Cash following: the comprise equivalents cash and cash end period the flows, of cash statement of the purpose the For less. or months of three maturity original an with deposits bank term short and held cash comprise equivalents cash and Cash 15. Cash and cash equivalents At December 31 At 1 January follows: as is receivables of trade losses impairment for provision the on Movement value. fair totheir approximates receivables other amount carrying the consider directors The rate. discount as key bankers Company’s the from rating credit appropriate (GRR) an Rate plus Reference Ghana applied company annum). The per 18% (2018: annum per of 18% rate aborrowing on based rate borrowing a using flows cash discounted the on based is staff from due of amounts value fair The GH¢523,000). (2018: GH¢609,000 exceed not did year the during indebtedness of staff amount maximum The increased business through indoor channel. by driven increase Receivables Togo. FanMilk to Trade goods of finished of production commencement and Assets, Fixed for toIntercompany payment by advance driven is Receivables in Increase (continued) (2,620) 20,284 36,799 39,032 47,024 21,363 17,664 1,800 2,620 (798) 2,233 5,775 2019 2019 2019 1,795 1,618 427 6,944 45,969 39,025 23,769 14,350 (1,618) 12,732 2,309 4,258 3,947 2018 2018 2018 (183) 1,618 1,159 642 523 45 FAN MILK LIMITED FINANCIAL STATEMENTS 46 FAN MILK LIMITED FINANCIAL STATEMENTS Notes Restructuring provision receivables of trade Impairment provision leave Staff basis cost historical on equipment and plant Property, liability tax income Deferred Year ended December 31, 2019 follows: as is tax income deferred in movement NIL). The (2018: 2019. December 31 at as assets tax unrecognised no were 25%). There (2018: of 25% rate tax income enacted the using method liability the under differences temporary on full in calculated is tax Deferred tax income Deferred 18. year of the At end year the for Profit At 1 January 17. Retained earnings unpaid. instalments or calls no are There shares. treasury no are There 2019. 31, December and 2018 31, December at as shares ordinary issued and authorised the in change no was There Capitalisation of surplus Capitalisation For issue bonus For cash consideration Issued The authorised shares of the company is 197,500,000 ordinary shares of no par value par of no shares ordinary 197,500,000 is company of the shares authorised The Stated16. capital Litigation provision Litigation (continued) At January (2,368) 1, 2019 1, 11.505 8,580 (245) (166) (146) -

No. of shares No. profit or loss or profit 116,207,288 Charge to to Charge 96,422,740 19,784,548 25,016 224,575 249,591 2,715 (304) 1,553 2019 1,187 166 113 - AtDecember Proceeds 31, 2019 31, 12,899 224,575 5,981 10,000 211,676 12,692 4,000 11,295 (450) (815) 2018 (132) 19 - Notes Up to2018 Up Year of assessment Year of 2019 31, December Year ended tax income Current 20. values. fair their approximate payables other and trade above of the amounts carrying The 12 months. next the over utilised fully be to expected is of GH¢3,099,000 provision remaining The period. reporting current the in for provided fully were costs These GH¢12,636,000. are incurred be to costs restructuring staff estimated total The redundant. made those to payable amounts as well as company, the by offered package compensation redundancy voluntary the and involved staff of number the specifies which 2019, June in representatives union the with reached was agreement An efficiency. operational towards plans tomanagement’s relates provision Restructuring Accrued expenses Restructuring provision payables Other 23) (Note parties torelated Due Trade payables payables other and Trade 19. Litigation Restructuring provision receivables of trade Impairment 2019 Staff leave provision leave Staff equipment on historical cost basis cost historical on equipment and plant Property, liability tax income Deferred 2018 31, December Year ended 18. Deferred income tax (continued) (continued) Balance at January (9,343) (9,343) - At January 1, 1, At January Charge for Charge the year 10,423 11,003 10,247 (43) 17,417 2018 6,414 (102) (31) - profit or loss or profit Payment in Charge toCharge the year (2,368) (9,258) (9,258) 96,363 32,308 40,952 (1,667) 11,390 3,099 1,082 8,614 2019 (143) (123) (115) - December 31 Balance at December 31, 2018 (2,368) (2,929) 1,745 (166) 80,182 29,661 (1,184) 11,505 17,983 14,814 8,580 9,537 (245) 8,187 (146) 2018 At At 47 FAN MILK LIMITED FINANCIAL STATEMENTS 48 FAN MILK LIMITED FINANCIAL STATEMENTS Notes Reconciliation of net profit before tax to cash generated from operations: from generated cash to tax before profit of net Reconciliation Cash22. generated from operations nil). (2018: 2019 31, December ended year the for dividend any recommend not do directors The 8%. of rate tax final at taxes of withholding deduction tothe subject is of dividend Payment At December 31 Dividend paid At 1 January Dividend21. payable Profit before tax before Profit Amortisation ofAmortisation intangible assets (Note 11) assets of financial Impairment 10) (Note plant production on loss Impairment Depreciation (Note 10) 2018 to2017 Up Year ended December 31, 2018 Year of assessment 2018 31, December Year ended 20. Current income tax (continued) (Note 7) (Note equivalents cash and cash on gain Exchange Finance income (Note 7) Cash generated from operations payables other and trade in Increase Increase in employee benefitobligation financial assets) on impairment and loan staff on receivable receivables interest (less (Increase)/decrease in trade and other (Increase)/decrease in inventories capital: working in Changes 10) (Note equipment and plant property, of disposal on Profit ofNon-cash portion tax offset 8) (Note costs Finance asset right-of-use on charge Depreciation (continued) Balance at January 1 January (1,833) (1,833) - Charge Charge for the for the 4,839 4,839 year - Payment Payment (46,206) (25,073) (12,349) (12,349) (4,949) 38,734 30,437 (8,157) in the 14,559 (27) 3,065 3,038 16,181 1,390 2,765 2019 1800 6,414 year 2019 292 931 - - - Balance at December 15,100 77,085 (13,075) (9,343) (1,299) 10,346 (1,833) (7,510) 28,742 16,071 15,951 3,065 (39) 3,104 2018 3,277 2018 1,134 642 (15) 211 31 - - - Notes Danone SA Danone A/S Emidan Purchase of goods parties: related with transactions following the into entered Company the of business, course normal the In control. common through related entities therefore are Companies These Limited. Africa West Milk Fan A/S and Emidan S.A., d’Ivoire Côte Milk Fan (Benin), SARL (Togo), Milk Fan S.A. Milk Fan (Nigeria), Plc Milk Fan in holdings other has and Company of the shareholder majority the A/S is International Milk Fan Limited. Milk Fan in shares ordinary issued Company’s of the 56.64% A/S holds International Milk Fan 23. Related disclosures party Fan Milk Nigeria Milk Fan S.A) Danone of (an affiliate Danone Centrale FanMilk West Africa Limited Africa West FanMilk D’Ivoire Cote Milk Fan Fan Milk Togo Milk Fan Fan Milk Togo Milk Fan of goods Sale Fan Milk Nigeria Milk Fan A/S International Milk Fan D’Ivoire Cote Milk Fan Limited Africa West FanMilk Fanmilk West Africa Limited Africa West Fanmilk d’Ivoire Cote Milk Fan SA Danone account) Assets A/S (Fixed Emidan account Togo Current Milk Fan Due from related parties follows: as are services and of goods purchase or and, sales from arising balance Outstanding Royalties Technical assistance (continued)

161,987 21,363 13,987 11,524 5,903 3,029 3,708 1,802 3,424 2019 2019 650 100 210 148 193 611 75 77 51 - 116,002 16,867 462 3,485 3,947 2018 2018 3,117 462 ------49 FAN MILK LIMITED FINANCIAL STATEMENTS 50 FAN MILK LIMITED FINANCIAL STATEMENTS Notes Inflation rate Attrition rate as follows: are applied assumptions actuarial significant The end year at Obligation loss and toprofit charged cost service Long of year start at Obligation Present value of obligation follows: as are year the over obligation benefit defined net the in movements the and sheet balance the in recognised amounts The award service Long Nil). (2018: GHS1,390 was obligations tothese relation in period current the in recognised expense The award. service of long level next the at is employee the when due amount the to limited is obligation constructive or legal company's the risk, of inflationary exception the With service. of length the on based employee its for plan benefit employee an operates company The 24. Employee benefit obligations Key management personnel have no post-employment benefits. Non-executive Directors (short-term benefits) Executive Director (short-term benefits) Remuneration; directors. the tobe considered are personnel Key management personnel key management with Transactions Togo Milk Fan Emidan A/S -Fixed Assets Account Assets A/S -Fixed Emidan Nigeria Milk Fan Fan Milk Cote d’Ivoire Cote Milk Fan Danone SA Danone A/S account) (current Emidan A/S International Milk Fan A/S Emidan parties torelated Due 23. Related disclosures party (continued) (continued) 40,952 3,418 31,737 2,448 466 1,802 2019 2019 3,148 655 192 - - 12,088 532 17,983 2,023 1,390 1,390 1,390 2018 2018 2019 2,787 1,933 2019 7.2% 608 399 11% 163 5 - - Notes Net book amount book Net At 31 December Charge At 1 January assets of right-of-use charge Depreciation At 31 December Additions At 1 January Cost Buildings (Warehouse) Right-of-use assets 2019. December 31 at as sheet balance the in recognised lease to that relating payments lease accrued or prepaid of any amount by the adjusted liability, lease tothe equal amount the at measured were assets Right-of use Measurement of right-of-use assets Non-current lease liabilities Current lease liabilities Lease liabilities toleases: relating amounts following the shows sheet balance The sheet balance the in recognised (i) Amounts Interest on lease liabilities Add: contracts as reassessed lease contracts At 1 January Lease liabilities Measurement of lease liabilities earnings. retained toopening made therefore were adjustments no and 2019, 1January after into entered was lease company’s The 25. Leases (continued)

4,657 4,657 3,726 2019 2019 2019 3,661 931 931 4,142 4,142 3,717 425 481 - - - 51 FAN MILK LIMITED FINANCIAL STATEMENTS 52 FAN MILK LIMITED FINANCIAL STATEMENTS Notes board of directors. board by the approved policies under Company of the management by the out carried is management Risk exposures. risk its any of hedge not does Company The performance. financial its on effects adverse potential the minimise to seeks and markets of financial unpredictability the on focuses programme management risk overall Company’s The risk. liquidity and risk credit risk), rate interest and risk exchange foreign (including risk market risks, of financial toavariety it expose activities Company’s The 27. Financial risk management objectives and policies Financial risk factors GH¢2,251,000). (2018: NIL tobe estimated is claims legal tothe related decision adverse an was there if tomake required be would Company the that payments of total amount undiscounted potential The claims. these from arise will liabilities material no that probable it considers Company The of business. course ordinary the in arising claims legal pending has Company The 26. Contingent liabilities Nil). (2018: GH¢996,496 was 2019 in leases for outflow cash financing total The At 31 December payment Interest Principal payment leases to respect with paid Amounts 4. expenses) administrative and sold of goods cost in (included leases toshort-term relating Expense cost) finance in (included expense Interest At 31 December Additions (Note 5) At 1 January Buildings (Warehouse) assets of right-of-use charge Depreciation loss or of profit statement the in recognised Amounts 3. nil). (2018: GH¢4,654,868 were year financial 2019 the during assets right-of-use tothe Additions 25. Leases (continued) (continued) 996 4,410 2019 481 481 931 931 515 - Refer to the table below for the exposure balances for foreign exchange risk: exchange foreign for balances exposure the for below table tothe Refer receivables and cash and bank balances. payables, trade ofdenominated Euro aresult as lower/higher, mainly GH¢1,575,551) (2018: GH¢2,526,979 been have would equity and year the for profit post-tax constant, held variables other all with Euro the against 10%) (2018: by 10% weakened/strengthened had currency the if 2019, 31, At December receivables and cash and bank balances. payables, trade denominated dollar of US aresult as higher/lower, mainly GH¢494,870) (2018: GH¢44,049 been have would equity and year the for profit post-tax constant, held variables other all with dollar US the against 10%) (2018: by 10% weakened/strengthened had currency the if 2019, 31, At December currencies. in foreign accounts bank holding by exposure currency the of effect the minimising for responsible is Management exposures. Dollar States United and Euro from arising risk exchange toforeign exposed is therefore and overseas from equipment and parts spare materials, raw imports Company The currencies. foreign in denominated liabilities and assets possible, as far as of matching, apolicy through exposure risk exchange foreign its toreduce seeks Company The currency. foreign in denominated balances payable accounts and receivable accounts of cash, aresult as arises risk exchange Foreign Foreign exchange risk risk Market 27. Financial risk management objectives and policies (continued) Notes at December 31, 2019, management was unaware of any significant unprovided credit risk (2018: Nil). (2018: risk credit unprovided significant of any unaware was management 2019, 31, December at As accounts. doubtful specific for made is provision necessary, when and, parties other and customers from received of cash monitoring through exercised is control credit Strict parties. related from due amount and activities trading normal from amounts of invoiced consist receivables other Trade and receivables. The expected credit losses also incorporate forward looking information. trade for provision loss expected lifetime of the use the permits 9, which by IFRS prescribed losses credit expected for providing to approach simplified the applies Company The risk. of credit concentrations significant any have not does Company The parties. related from due amount and tocustomers sales from derived mainly are receivables other Trade and receivables. other and trade and equivalents cash and cash primarily are risk tocredit Company the subject potentially that instruments Financial Credit risk risk. price to subject instruments financial any hold not does Company The Price risk Nil). (2018: 2019 31, December at as risk rate tointerest exposure no had Company The date. reporting the at rates market in changes of because fluctuate will instrument of afinancial flows cash future or value fair the in changes how shows risk rate interest for analysis sensitivity The risk rate Interest Trade and other receivables other Trade and Bank balances (excluding cash) Trade and other payables other Trade and (continued) 39,976 31,829 4,246 3,901 2019 15,236 16,573 2018 576 761 53 FAN MILK LIMITED FINANCIAL STATEMENTS 54 FAN MILK LIMITED FINANCIAL STATEMENTS Notes The table below shows the maximum exposure to credit risk by class of financial instruments: of financial by class risk tocredit exposure maximum the shows below table The Ghana. of Bank the by licensed institutions financial only with business banking by transacting equivalents cash and tocash relating risk credit manages Company The liquidity risk. liquidity managing for sufficient tobe expected is This million). GH¢43.12 (2018: million GH¢36.79 was accounts deposit fixed and call on held cash accounts, bank date, reporting of the end At the obligations. its meet to funding sufficient toprovide accounts current bearing interest in cash places Company The facilities. credit of committed that sufficient cash is maintained, and that sufficient funding is available through adequate an amount implies management risk liquidity Prudent risk. liquidity its tomanage strategies devises Company the evaluations, these on Based basis. ongoing an on obligations its to meet ability its evaluates Company The Liquidity risk 1. stage in be to assessed are assets The nil). (2018: 2019 December 31 at as insignificant be to loss credit expected the identified they assessment, this on Based losses. credit expected their todetermine balances receivables party related and cash receivables, other the assessed Company The On that basis, the loss allowance as at December 31, 2019 and December 31, 2018 is as follows: as is 2018 31, December and 2019 31, December at as allowance loss the basis, that On of receivables. life credit the over significantly change not would factors of these impact the that assumes Management of receivables. life credit short tothe due analysis the into incorporated been not have factors economic macro- General team. receivable Accounts tothe communicated is obligations their tohonour ability their and agents of the operations the on gathered is that information looking forward relevant any visits, these on Based averagely. aweek twice agents visit Salesmen salesmen. from incorporates forward looking information into the impairment provisioning based on feedback received management of receivables, life credit and of debtors number tothe Due information. forward-looking and current toreflect adjusted are rates loss historical The experienced. losses credit historical corresponding the and customers sales of profiles payment the on based are rates loss expected The receivables. trade against collateral as held are million) GH¢13.4 (2018: million toGH¢13.8 amounting savings Agents Gross carrying Gross allowance Loss amount carrying 2019Gross Bank balances (excluding cash) Loss allowance Loss amount Trade receivable Total credit risk exposure receivablesOther (excluding prepayments) (continued) 1 to 30 1 to 10,697 15,593 days 69 - 31 to 180 to 31 2,445 days 2,071 341 - More than 180 days 56,258 36,799 1,795 17,664 2019 2,620 2,620 1,209 1,209 2,620 2018 2,620 6,778 20,284 62,628 12,732 43,118 14,351 Total 2018 1,619 The carrying value of Company’s financial assets and liabilities approximates its fair value. fair its approximates liabilities and assets financial of Company’s value carrying The 3). (level inputs) unobservable is, (that data market observable on based not are that liability or asset the for Inputs and prices); from derived is, (that indirectly or prices) as is, (that directly either liability, or asset the for observable are 1that level within included prices quoted than other 2-Inputs Level liabilities; or assets identical for markets active in (unadjusted) prices 1-Quoted Level hierarchy: measurement value fair following of the by level measurements value fair the discloses Company The future principal and interest cash flows, discounted at the market rate of interest at the reporting date. reporting the at interest of rate market the at discounted flows, cash interest and principal future of value present the on based calculated is purposes, disclosure for determined is which value, Fair (b) Non-derivative financial liabilities date. position of financial statement the at of interest rate market the at discounted flows, cash of future value present the as estimated is receivables other and of trade value fair The (a) receivables other Trade and nature. term short of their because value, fair their of approximation are a reasonable liabilities and assets financial of all amounts carrying The 28. Fair values of financial assetsand liabilities bearing fall due for payment within six months. six within payment for due fall bearing non-interest are liabilities financial All liabilities. financial Company’s the analyses below table The analysis ofMaturity financialliabilities Notes Lease liabilities Dividend liabilities) Trade and other payables (excluding non-financial cost amortised at liabilities (ii) Financial cost amortised at assets (i) Financial Dividend Trade and other payables (excluding non-financialliabilities) Cash and cash equivalents staff from due Amount Trade and other receivables (excluding non-financial assets) Amount due from related parties (continued) 96,255 89,075 3,038 2019 4,142 3,038 89,075 39,032 80,281 19,459 21,363 92,133 2019 427 3,065 65,480 45,969 75,346 72,281 72,281 72,281 15,041 3,065 2018 3,947 2018 523 - 55 FAN MILK LIMITED FINANCIAL STATEMENTS 56 FAN MILK LIMITED FINANCIAL STATEMENTS Notes The gearing ratios at December 31, 2019 and 2018 were as follows: as were 2018 and 2019 31, December at ratios gearing The 2019 1January on liabilities lease and assets of right-of-use recognition the following increased assets gross and debt net Both Leases. 16 of IFRS adoption the following to1.6% nil from increased ratio toequity debt net The Nil). (2018: year of the end the at borrowings any have not did company year. The previous the from processes and policies objectives, the in made were changes No debts. net plus equity as calculated is Total capital equivalents. cash and cash less borrowings total as calculated is debt Net capital. by total divided debt net as calculated is ratio This ratio. gearing of the basis the on capital monitors Company The debt. toreduce assets sell or shares new issue toshareholders, capital return toshareholders, paid of dividends amount the adjust may Company the structure, capital the adjust or tomaintain order In capital. of cost the to reduce structure capital optimal an maintain to and stakeholders other for benefits and value shareholder tomaximise shareholders for returns toprovide order in concern agoing as tocontinue ability Company’s the tosafeguard are capital managing when objectives Company’s The 30. Capital risk management Nil). (2018: year of the end the at commitments capital no were There commitments Capital 29. period of 12 months from the end of the financial year. financial of the end the from of 12 months period a for concern going as a continue to ability company’s the on impact asignificant tohave pandemic COVID-19 the expect not do directors The report. this of date the and position of financial statement of the date the between occurred have that events material other of any aware not are directors The point. this at impact of this estimate areliable toproduce however, able not is, company The impacted. be will information looking to forward relating (ECL) provisions Loss Credit Expected the a result as and economy the on impact an have likely most will pandemic 19 COVID the that envisioned is It events Subsequent 32. segment. operating a single into aggregated been therefore have they and characteristics economic similar tohave products the considers Management drinks. of fruit sale from derived is percent six remaining the and products diary of sale from derived is revenue Company’s of the percent Ninety-four drinks. fruit and products dairy of distribution and manufacture the from revenue their derive segments operating reportable The from a product perspective. business the considers Company The decisions. strategic tomake used are reports These Department. of Heads by the reviewed reports the on based segments operating the determined has Management information Segment 31. Total equity debt Net Debt (lease liabilities) Cash and cash equivalents Gearing ratio (continued) 259,591 (4,142) 34,890 39,032 2019 1.6% 234,575 45,969 2018 - - - (All amounts are in thousands of Ghana cedis unless otherwise stated) Financial Highlights Administrative expenses Other income Other Finance income Cost of Sales Cost Tax Value added tax costs Finance Impairment on financial assets Distribution costs Revenue Revenue GH¢’000 in Amounts Operational results (continued)FINANCIAL HIGHLIGHTS Profit for the year the for Profit Tax costs Finance Impairment on financial assets Distribution costs of Sales Cost Profit before tax before Profit Other income Other 2.8 12,899 93.9 25,016 in equity of changes tostatement Transfer (Gross)Revenue GH¢’000 in Amounts Finance income Sales of Gross Distribution Administrative expenses Low (GH¢) High (GH¢) share): (per range price Stock Permanent staff Shareholders’ fund Profit after taxation end: Year Earnings per share per Earnings Dividend Per Share issued of shares Total number Total assets 116,207,288 (254,210) (50,656) (91,309) 466,245 424,486 424,486 254,210 259,591 375,819 (13,718) (1,800) 50,656 (2,765) 91,309 42,349 10,039 10,039 38,734 25,016 25,016 13,718 1,800 4,949 4,949 2,765 2019 2019 0.00 2019 0.22 8.01 4.12 581 116,207,288 (240,731) (76,366) (73,878) 389,507 326,402 234,575 12,899 12,899 18,001 (3,172) (1,134) 16,071 (44.2) (31.4) 276.6 332.5 (642) 2018 2018 143.8 (180) 17.80 0.00 1,314 44.7 7.99 19.6 469 0.11 8.9 5.6 9.3 % 116,207,288 change (10,546) 300,109 389,507 (23,222) 426,545 (14,943) (13,479) 240,731 221,676 (7,962) 76,366 22,663 34,979 73,878 18,001 75,510 47,297 (1,631) (1,158) 20.00 3,635 12,117 11.08 0.00 2017 2018 3,172 1,314 1,134 0.41 642 487 116,207,288 % change 245,064 174,379 66,128 100.0 (44.2) (31.4) 276.6 332.5 2016 143.8 0.00 141.0 60.2 78.0 93.9 0.57 5.25 16.4 19.6 7.35 16.2 51.8 180 523 427 0.3 8.9 0.2 5.6 3.9 0.7 % 57 FAN MILK LIMITED FINANCIAL STATEMENTS 58 FAN MILK LIMITED FINANCIAL STATEMENTS Responsibility Social Corporate § § for all employees. To remain competitive, the the To competitive, remain employees. all for security social and health environment, working asafe toguarantee endeavours Company The employees Social responsibility towards Certifications: ISO following the possessed Company the 2019, of year end the at As organisation. representatives from various national standards international standard-setting body composed of an is which standards (ISO) management International Organisation for Standardization with compliant tobe continues Company The ISO certifications Programme.Compliance the under Conduct of Business Code of the them Policy and apprising intraining Integrity arefresher through them taking by periodically employees our in values ethical toinstil continue promised our numerous discerning consumers. We we what delivered we all Above stakeholders. regulations and honoured our obligations to all relevant all with complied We also of Ghana. laws the with accordance in operate and citizen corporate ethical an being as ourselves We pride Ethics Region. Ashanti the in Schools High senior and junior primary, (26) twenty-six to bins litter 100 giving by (GNASBA) Association Beneficiaries Scholarship The Company continues to demonstrate this commitment in collaboration with the Ghana National operates. it which in localities the within impact social with activities in engaged been has Company The Activities for 2019 § § Management Systems Safety Food 22000:2005 ISO Systems Management Quality 9001:2015 ISO

§ § the awards of particular note are as follows: as are note of particular awards the review under year the For annually. tostaff awards of giving practice the has and employees of its The Company recognizes exceptional performance Policy. by the covered were they because education cycle employees with scholarships through their second- did not continue for its support eligible children of High School Education Policy (Policy), the Company Senior Free of the implementation of the virtue By various sponsored programmes. through of staff of careers development to the commitment its on focused remains Company The work. from toand services bus from benefit also office Head and Factory the within work who Staff responsibilities. and duties their discharging are they while employees of well-being and comfort the for services canteen and laundry provides Company The occupation. and of employment respect bargaining but does not condone discrimination in tocollective of employees right the and association of freedom upholds also Company The employees. its for periods rest guaranteeing as well as benefits, and compensation fair offering also is Company § § Dedicated Service Employees. to Awards awarded were Service Long Employees; and Employees; Exceptional Performance of Individual Year of the Workers Award for from paid and maternity leave. paternity benefit employees Company’s the Additionally, acertificate. received winner award each prizes the to addition In served. years (5) five additional each for subsequently (10) and years ten least at for loyally served had who employees to given were others among sets televisions refrigerators, deep freezers, cylinder and household appliances such as cookers, comprised which Awards, Service Long The professions or vocations in the Company. respective their in excelled who to employees prizes Year offered Awards of the Worker The Responsibility Social Corporate in the workplace and its immediate environs environs immediate its and workplace the in on safety placed isEmphasis continuously breadth of the country. andservices facilities across the length and of health range awide toaccess opportunity the dependents their and employees affords scheme This dependents. their and staff for comprehensive medical insurance scheme the tomaintain continues Company The 2019. October in employees its for exercises screening breast out Insurance, carried Medical the Company, in collaboration with Nationwide heart, at employees of all welfare the Having regulations. health vendors’ food the with conformity in screened are regularly of staff Members public. general the and employees both on operations of its impact environmental and health safety, the assesses continuously Company The Health and safety nation. the across interns (5) five and personnel service national (35) engaged thirty-five we review, under period the during that to state graduates and regular we students, are proud to support career provide to consistently Company of the practice the been has As Internships

§ § § hour cover for the following eventualities: following the for cover hour 24- with staff for Policy Insurance Comprehensive Group the maintained has Company the them, upon improve tocontinuously drive the and place in measures preventive the from Apart Safety. and Health on them sensitizing including topics various on Academy Fan the at trained periodically are they where Vendors Agents tothe extended also is Safety and Health The environment. healthy and asafe in work employees our that toensure commitment our demonstrating 19), was recorded (levels 2016 from decline aconsistent been has there that noting worth is It half these accidents. by of reducing target our achieved we Therefore, 2018. in to8 compared recorded was off time to leading accident workplace one only as 2019 in decreased significantly off totime leading accident workplace achieved Milk Fan Similarly, Milk. Fan at recorded was accident fatal no 2019, In month. the for topic safety the highlighting exercise contact asafety with meetings all begins Company the safety, on position Company’s the To reaffirm Assembly. Metropolitan Accra and the Health Inspectorate Department of the Ministry Employment of the Division Inspectorate Factories the Service, Fire National Ghana the as such bodies of regulatory requirements the throughout the Company in compliance with instituted been have individuals all protecting at aimed standards safety high Therefore, situations. risk critical most the for standards with compliance ensure (ii) sites Company all at safety and health of workplace culture the (i) promote approaches: two through accidents of workplace number the reducing at aiming program, worldwide aDanone Environment), Safe In (Work program WISE2 the through notably § § § Fatal accidents. Non-work related accidents; and Work related accidents; (continued) 59 FAN MILK LIMITED FINANCIAL STATEMENTS 60 FAN MILK LIMITED FINANCIAL STATEMENTS nine goals constitute the strategic framework framework strategic the constitute goals nine long- term sustainable value creation. These todrive Company of the models trust and brand business, the embed Goals 2030 Danone The strategicsetting priorities. for process entities’ the into them incorporate and level local at challenges development sustainable and strengths toidentify Danone allowed self-assessment 2019 of the results The certification. B CorpTM for units business central 3) Prepare the disclosuresupport required information and and commitments of Danone’s integration local 2) Ensure Goals Company 2030 of the which are 1) local Support implementation Danone Way servesthree strategic objectives level. global and regional local, the our sustainability commitments and priorities at against performing are entities how measure program, an annual self-assessment to Way Danone adopted have we Company, the within sustainability todriving astep As sustainability are adequately handled. under nutrition and health environment, social, who ensures that all issues which border on Africa West for Secretary General by the led is Company of the growth Sustainability The objectives. sustainability our and strategy business our between link the demonstrates and model governance values, Company’s the presents also It interconnected. are planet of the health the and of people health the that by recognizing world the across concerns environment and health tobuild is ambition The Health. One Planet of One vision with world the over all out spread has Danone stakeholders. internal and external strategic our importantly most and large at public to the activities everyday by our created impacts social and operation tells the economic, environmental of scope Company’s the in Sustainability Sustainability Reporting Responsibility Social Corporate

leadership positions in Ghana. senior in of women representation the to increase of influencing and drivingpolicy changesthat seek employees encouraging them on the importance female its for asession held and theme global the on leveraged Milk Fan #BalanceforBetter’’. a with change” for innovate smart, build equal, “Think theme the under Ghana in celebrated was Women’s Day International the 2019, In Milk. to Fan bring together all differences their value added the valorizing and employee of each uniqueness the recognizing about is Diversity teams. its for agility a everywhere, sourceopportunity of innovation and an as diversity promoted has Limited Milk Fan women. and of men ratio equitable ensuring for people of differentgenders which gives room Gender Diversity ensures fair representation of Gender Diversity the year under review: under year the following activities give details of activities during The products. refreshing healthy and programmes sustainability our through ambition Health One Planet, One of our improvement the supporting in strides great We made Goals. 2030 of Danone delivering strong results, reflective of the objectives Danone Company mother Milk’s Fan reinforce to period important another was 2019 year The Planet –One Ecosystem sustainable socially and environmentally an Creating topics on environmental Collaborating with our stakeholders skills regardlessleadership of their position. & professional their develop and departments all from employees with network their grow business, of the understanding their toimprove employees platform provides for all the opportunity Fan Milk X”. This “Campus as known platform learning dedicated the onto migrated were employees Limited Milk Fan all 2019, of year end At the Learning of Danone. (continued) Social Responsibility Social Corporate GHS10,000 to 26 public schools in Kumasi. in schools to26public GHS10,000 worth bins 100 donated we 2019, In schools. in sanitation of good of responsibility a sense instil and build topromote, nationwide schools across distributed been have bins branded Milk Fan 10,000 over GNASBA, through years, 26 last the In schools. in change behavioural impact topositively sanitation proper around running education and awareness campaigns as well as schools, in trees planting namely; projects environmentally sustainable champion to NGO an as GNASBA with towork was project of this goal The Campaign. Education Sanitation Environmental Schools GNASBA the launched Association (GNASBA) Beneficiaries Scholarship National Ghana the with partnership in Milk Fan Project: Campaign Sanitation School GNASBA with 26Yearsof Partnership Celebrated FanMilk compostable, the decision was made to phase tophase made was decision the compostable, or recyclable reusable, either is packaging our all by 2025 that toensure goal our with line in Also, chain. value plastics the across people many for jobs created and Tema Newtown of the over 10,000 residents, school children, members reached has creation awareness and education project’s the Additionally, GHS50,000. of over wealth shared a generating thereby landfill, in the community, choked or gutters ended up littered have would otherwise which environs, its and Tema Town New the Community from of plastic tons 60 over sold and recovered center sorting the review, under year the In Agency. Development Netherlands the and Fund Ecosystem Danone from funding with (WIEGO), Organizing Globalizing Employment Informal in (MIT-D-Lab), Lab Women Design of Technology Milk, Environment Institute 360, Massachusetts by Fan co-created aproject as launched was IT Pick- sector. waste the in jobs new creating and existing maintaining environment while in Ghana aplastic-free by enabling plastic responsible guarantees environmentally and socially forward: an inclusive recycling system that path alternative an proposed 2017,In Milk Fan Economy Circular – Towards Center a Pick-IT Sorting

advanced. far very are Principle Pay Polluter the using Scheme Responsibility Producer Extended first Ghana’s up Finally, through GRIPE conversations around setting of Ghana. cabinet the from approval pending review under currently is which Document, Policy Plastics National tothe made were contributions AGI and GRIPE through stakeholder, of external terms In center. sorting the through recovered being tons 60 over with of plastics tons 73 estimated an recovered GRIPE targets. collection annual its meet can GRIPE that ensure to coalition the to support unflinching his companies,member Mr. Yeo Ziobeieton pledged by project flagship the as center sorting Pick-IT the With companies. member GRIPE of the directors comprising all steering committee and managing people by 23 attended and meeting board GRIPE first the hosted tohave proud very is Milk Fan GRIPE. of work the advancing in role a significant played and (GRIPE) Enterprises by Private Initiative Recycling of Ghana President Vice the as served Milk Fan 2019, In GRIPE: Engagement, Multi-Stakeholder Foundation Declaration. McArthur Ellen to the commitment external our of fulfilment in and circularity achieving towards commitments internal our with line in are initiatives These recyclable. be will packaging Limited’s Milk of Fan 100% that mean will This recycled. be cannot it since (PVC) packaging Chloride PolyVinyl all out compliance with the local Environmental Protection Protection Environmental local the with compliance in result also will This Factory. the at plant treatment wastewater of anew construction the for approval the toannounce proud is Milk Fan facilities, our in of wastewater discharge the regarding Standards Water Clean Danone’s with compliance 100% toachieve order In Treatment: Wastewater sustainability. ensuring and waste minimizing thereby sites, production its in water use of efficient demonstrated 2019 in Milk Fan target. its exceeded and achieved factory The factories. in intensity water decrease to targeted guidelines, Stewardship Water Danone with line in Milk Fan 2019, In Stewardship: Water Environmental 2019 performance (continued) 61 FAN MILK LIMITED FINANCIAL STATEMENTS 62 FAN MILK LIMITED FINANCIAL STATEMENTS both outdoor & indoor. channels all in togrow continues and old and Young both from acceptance wide enjoyed has product The mind. and of body development healthy the for essential minerals and vitamins relevant with enriched its and flavours LEMON & PLAIN in comes SuperYogo Ghanaians. of well-being and nutrition general the improve to agenda its with line in Ghana in Yoghurt Frozen fortified First the launched Milk Fan Plain & Lemon. One Health Launch of SuperYogo by 2050. target set the toachieve emissions of carbon tracking and measurement for aframework as serve will This Milk. of Fan 3Emissions 2and 1, Scope Track Tool toassess Green the using a baseline undertook 2019 in Body Nature Danone the with partnership in Milk Fan Therefore, 2030. and 2015 between 2, 1and scope on by 30% emission absolute 3). reduce and (ii) 1,2 (scope scope full Danone’s on by 50% intensity (i) emission reduce to was step first the by 2050, neutrality carbon of goal our toachieve order In Emission: Carbon activities are not degrading the watersheds. Agency regulation to ensure the Company’s Responsibility Social Corporate milk drink. Milk inherently containing calcium calcium containing inherently Milk drink. milk a flavoured of being attribute functional to its due alternative snack ahealthier as positioned is FanChoco diets. children’s of the component acritical is which period snack the around education nutritional on Talk centered is Brand FanChoco wrappers. with starting segregation waste and sanitation about youngsters the sensitizing option, snack ahealthier as Choco Fan by positioning kids with affinity brand by building this does amongst teenagers in Ghana. The Company and encouraging healthier lifestyle choices educating, aims at sensitizing, that initiative building abrand is Caravan Choco Fan The Fanchoco Caravan:

productivity and savings. operational in improvement and losses material in ensuring high operational efficiency, significant drop for Damaway the in performance outstanding its for award Turnaround Efficiency Operation an won Company the review, under year the During by 2021. Africa in of Excellence Hub Manufacturing 3Danone top the among tobe is aim The environment. and motivation delivery, cost, quality, safety, on is focus The 2019. of January end the at Way) Factory the at Manufacturing Danone (the “DaMaWay” the launched Company The Productivity safety of all our employees. our of all safety utmost the ensuring with line in also is This attention. medical receiving before office the in accidents minor or toindustrial torespond teams our empower to was training certified this of providing goal The training. Aid First afree with provided were Ghana in locations 10 over from staff of members fifty 2019, In Trainings- Aid Training First Response: and Ammonia Ready Aid First be to Staff Milk Fan Empowering environment. the litter not does it ensuring thereby recycling, for center sorting Pick-IT tothe sent and aggregated are wrappers Milk Fan recovered the and highlighted, also is disposal waste Proper by kids. needed especially bones of strong development with helps which (continued) § § § § These were: economy. the todevelop areas thematic four the on attention its focused still government The compromising fiscal consolidation. without growth inclusive promoting Ghanaians; of all engagement economic the for allows environment which a business conducive of creation the on focus statement policy in government economic the outlined policies primary The economy. the in participation Ghanaian economy and increasing individual the stabilizing in year previous the in made gains the consolidating on premised was 2019 for programme economic Government The world. the in highest the among growth such 6.8%, by about togrow estimated was economy The 2018. in exercising rebasing (GSS) Service Statistical the after 2019 in well The Ghanaian economy reasonably performed § § § § institutions delivery service of public Reformation and inclusion. Strengthening of social protection educational system infrastructure – including the social and A revamp of economic agriculture and industry Continuing transformation of Environment Economic The Macro- to be close to the target of 7.0 target percent. tothe close to be projected is 2019 for growth GDP Overall, industry. service the in growth firmer a reflecting percent, 6.7 grew by GDP real 2019, of half first of the end At the Growth GDP below. indicated are 2019 year for indicators economic Some ECONOMIC INDICATORS by 31 December 2019. December by 31 share 4.12 per toGHS 2019 7.99 January GHS in from by 48.4% fell shares Company’s of the price The MARKET PERFORMANCE ON THE STOCK 2018. in period same the over respectively 3.9% and 3.3% with compared EUR the against 11.2% and GBP the against 15.7% 2018, in to8.4% compared dollar the against by 12.9% depreciated GHS the basis, year on year On depreciation. worse the recorded year the of quarter first The to2018. compared as 2019 in depreciation sharp suffered currency local The Exchange Rates %. 7.9 of arate at 2019 ending of 8.0% target the around steady remained recently more and 2018 June since digit single the in remained has inflation Headline Inflation 63 FAN MILK LIMITED FINANCIAL STATEMENTS 64 FAN MILK LIMITED FINANCIAL STATEMENTS 65 FAN MILK LIMITED FINANCIAL STATEMENTS 66 FAN MILK LIMITED FINANCIAL STATEMENTS F T North Industrial No F T Airport C Plo Gr w el: el: AN MILKLIMITED act w and Oy . 1,DadebanRoad, t No 030 w 0 ory: . 3 f a . 9,SouthLiber 0 n 2 210660 ommer 2 4 eeman Building m i l 2 9 k -

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