1

2017 ANNUAL REPORT 2 3

A proud history The roots of Surinaamse Brouwerij N.V. lie in the Dutch province of Zeeland, where brothers Piet and Arthur Dumoleyn made the decision in around 1950 to continue their beer-brewing activities in Suriname.

Suriname, which was a Dutch colony has always played an important role consumers, optimum welfare for at the time, did not have its own in the company’s strategy, and still employees and socially responsible brewery. The brewery was officially does to this day. Hence, Surinaamse business practices and engagement. opened in October 1955 by His Brouwerij was one of the first Surinaamse Brouwerij brews, Royal Highness, Prince Bernhard breweries in South and North produces, sells and distributes (later the Queen’s Consort). At the America to achieve both the ISO and PARBO Bier, PARBO Radler, PARBO end of December 1955 the company the HACCP certificate. Light and PARBO Chiller for the produced the first PARBO BIER. Nowadays Surinaamse Brouwerij Suriname market. Surinaamse Shareholder of the first hour was strives to produce and sell beer Brouwerij also exports PARBO Bier, Amstel brewery, which was acquired that meets international standards. PARBO Chiller and PARBO Radler by HEINEKEN in 1968. The strategy is aimed at achieving to a select number of countries. profitable and sustainable growth in The company imports and Disclaimer The Surinamese beer was of order to strengthen the position of distributes the products Heineken®, This Annual Report is a translation of the original Dutch Annual Report. The Dutch Annual Report is adopted and excellent quality right from the the business. Surinaamse Brouwerij Desperados, Sol and Vitamalt in approved by the General Meeting of shareholders on June 20th, 2018. This translation is for information purposes start, as evidenced by the Prix is thereby seeking an optimum Suriname through its subsidiary. only and no rights can be derived from its content. In the case of any discrepancies between the English and the d’Excellence award during the World return for shareholders, consistent Dutch text, the latter will prevail. Beer Fair in Ghent, Belgium. Quality satisfaction amongst customers and

SURINAAMSE BROUWERIJ N.V. 2017 ANNUAL REPORT 4 5

Contents

Foreword from the Managing Director 6 Management Report 8 Financial results 8 Five year consolidated key figures 10 Developments in the Supply Chain department 12 Commercial insights 14 Our employees 16 Management team 18 Report from the Supervisory Board 20 Supervisory Board 22 Corporate social responsibility 24 Sustainability report 28

Financial Statements Consolidated balance sheet at 31 December 32 Consolidated income statement 33 Consolidated statement of changes in equity 34 Consolidated Cash flow statement 35 Notes to the consolidated financial statements 36 Notes to the consolidated balance sheet 42 Notes to the consolidated income statement 49 Company balance sheet as at 31 December 52 Company as at 53 Other information 56 Independent Auditor’s Report 58 Refernce Information 62

SURINAAMSE BROUWERIJ N.V. 2017 ANNUAL REPORT 6 7

Foreword from the Managing Director 2017 was a year of change for Surinaamse Brouwerij...

A well-established tradition at suppliers, partners with whom We implemented significant Surinaamse Brouwerij is that every we do business) and from within organisational changes in 2017 in meeting involving three people our organisation we demand that order to make our company more or more starts with the topic of they too comply with our rules and effective, including splitting the Safety. Surinaamse Brouwerij has a are constantly alert to the issue of Logistcs and Warehouse activities strong focus and a good reputation safety. Unfortunately we suffered into two separate departments, with regard to safety, both within two accidents in 2017 that show yet introducing our Corporate HEINEKEN worldwide and in the again that accidents can happen Affairs & Facility Management region in which we operate. In despite our best efforts. Although department, and merging the Sales, 2017 we achieved a respectable regrettable, the two accidents Trade Marketing and Marketing number of 1,082 accident-free days, have at least refocused our entire departments into one department, which is a record and an amazing organisation. namely the Commerce department. achievement. Achieving a record is noteworthy, but it is not our 2017 was a reasonably good year These organisational changes goal. The goal is to work as safely overall, and Surinaamse Brouwerij have helped to strengthen as possible so that our employees was able to achieve a reasonable our Leadership Team (LT) with can return home safely to their operating result under the macro- additional responsibilities and families at the end of the working economic conditions. The growth empowerment. The LT now consists day. Surinaamse Brouwerij works in our sales by 24% combined with of 24 colleagues who all head a Secondly we will commit ourselves been constructive. We have mutually way Surinaamse Brouwerij will with external parties (contractors, our ability to limit the rise in costs department. The LT, of which the commercially to growing sales. agreed to spread salary increase in continue to change and improve has resulted in an increase in the Management Team (MT) is a part, This does not simply involve selling alignment with the results achieved in close collaboration between all Operating Profit result by 3.8%, and providesthe the actual leadership of more product, but also increasing in view of the macro-economic the departments with engaged and a reduction in the financial costs the brewery. the quality of the sales by focusing situation. Our trade union recognises motivated employees. resulted in a 37% increase in the Net on the premium segment of the that it is sometimes necessary to Profit. The LT has conducted a number market. Thirdly we will perform take austerity measures. However, E.H. Weggemans of creative thought and discussion efficiently from start to finish. we have also agreed that if the As part of the masterplan to sessions over the past year in order That means a cost-conscious opportunity arises we will also allow prepare our brewery for the future to redefine our three year strategy. operation, efficient production, the employees to share in the good we launched a major Supply The aim was to do this together so better budget management and results that are achieved. We are Chain project in 2017, namely the that we are all committed to the tighter supervision within the also enabling our retired employees Managing Director construction of a new brewhouse. changes that are needed in order to Supply Chain from everything that to share in this; respect for elders Paramaribo, 14 May 2018 This project will significantly expand be able to successfully implement we put in through to what comes is one of the defining aspects of our production capacity. We also the new strategy. All change can out. Fourthly we want to focus Surinamese culture. started the expansion of our storage offer something positive, and in this specifically on a better Suriname and warehousing capacity on the case it resulted in a new mission with our sustainability agenda 2018 brewery site. We also continued to and vision and 2020 strategy ‘Brewing a Better World’ by doing Looking forward to 2018 the innovate in 2017 and launched new entitled ‘Good to Great’ (GtG). business in our beautiful country in organization of Surinaamse products including Radler Cherry a socially responsible way. Brouwerij will continue to develop, and Ginger, the Mexican beer brand GtG consists of four pillars. and we will also continue to launch Sol and a new can pack type for the Firstly we will invest in our staff We think it is worth emphasising new products. We hope to be able Heineken brand. by developing them and keeping that the discussions with the trade to sample the first brew from the them engaged with the business. union over the past year have again new brewhouse in October. In this

SURINAAMSE BROUWERIJ N.V. 2017 ANNUAL REPORT 8 9

Management Report Financial results

The increase in costs for our Personnel costs rose by 24%. This as a result of a reduction in financial R services was driven by an average is partly explained by an average costs. This was caused by lower increase in salaries by 37%, the exchange rate differences (-75%) Volume growth Revenue growth Growth of operating result Growth of net result increase in marketing costs by 78%, the costs of energy and water by costs of expats rose by 12% and partly offset by higher interest 2% 24% 3.% 37% 45%, maintenance costs by 103% medical expenses rose by 40%. costs (+104%). The lower exchange

3,% and other general costs by 23%. rate differences resulted from the 37% 113,5 109,4 The increase in the depreciation application of the group accounting The marketing costs mainly rose as costs by 55% was mainly caused policies whereby unrealised

201 2017 201 2017 a result of the costs of developing by the reduction of the lifespan exchange rate differences on group our new TV commercial (which was of the 1 litre returnable bottle loans are included in the item launched in 2018), supporting our from 7 to 3 years. In line with our ‘Shareholders’ Equity’ on the balance innovation programme and the use investment programme, we spent sheet. of a new accounting rule whereby SRD 55 million on - amongst other all POS materials are recorded as things - safe operation in the The higher interest costs In macro-economic terms, the crisis one price increase with effect from costs on arrival in the warehouse production environment, expanding materialized partly from group in 2017 has not yet come to an 1 October 2017. whilst previously, these materials our warehouses, replacing part of loans for a total of EUR 12 million end, but its ferocity has diminished were only entered as costs when the machinery and vehicle fleet, at the end of 2017, and partly somewhat. Gross National Product This increase was only part of our they were used. returnable packaging materials from a higher amount of interest has developed as follows: -10.8% portfolio, namely Parbo Regular, the and sub-zero refrigerators. We also paid arising from the provision for in 2016, -1.2% in 2017 and the 1 litre returnable packaging and the The maintenance costs doubled in started the development of a new medical expenses. expectation for 2018 is +1.2%. At 50cl and 33cl cans. The increased 2017 versus 2016 as a result of the brewhouse, which will be completed the end of 2017 the average annual volume mainly resulted from the maintenance that was deferred in in October 2018. inflation was 22%. Although the growth of the Parbo range and the 2016 and exchange rate increase. USD/SRD exchange rate stabilised Radler and Desperados innovations. As a result of the growth in sales in 2017 at SRD 7.50, the average The higher costs of energy and revenues on the one hand and the annual exchange rate compared to The total cost of ingredients, water are a result of an increase in increase in costs on the other hand, the average for 2016 rose by 21% raw materials, consumables and water charges by 100%, petrol and our operating result rose by 3.8% from SRD 6.3 to SRD 7.6. services rose by a total of 39%. The diesel costs by 25% and crude oil compared to 2016, which resulted increased cost mostly resulted from costs by 120%. in a growth of the net result by 37% Despite the ongoing crisis, the average rise in the exchange Surinaamse Brouwerij has again rate of 22% and increased purchase completed a reasonably good year. prices on part of our imported beer The net result rose by 37%, which range, partly offset by our cost- can be explained by a number of saving programme for ingredients and packaging materials. factors. Financial and operational highlights

The growth in our sales by 24% The cost-saving programme entitled Revenue Operating result et result in SRD/ M in SRD/ M in SRD/ M ‘Refuel for Growth’ is directed from was partly driven by a total 2017 353 2017 113 2017 increase in volume of 2.1% and the the regional head office and is 201 24 201 109 201 49 2015 190 2015 117 2015 42 ongoing effect of the price rises designed to stimulate profit growth. 2014 220 2014 7 2014 43 2013 205 2013 59 2013 3 implemented in 2016, together with

SURINAAMSE BROUWERIJ N.V. 2017 ANNUAL REPORT 10 11

Five year consolidated key figures

In order to give a clear insight into the development of the operating results, the table below shows important data from the annual figures (expressed in EUR unless otherwise stated). For balance sheet accounts, the year-end exchange rate is used, while for income statement related accounts, the average exchange rate is used to convert SRD to EUR.

In euros 2017 2016 2015 2014 2013

Balance sheet total 33,377,122 28,681,143 28,522,466 32,148,521 25,076,128

Revenue 41,432,105 40,713,682 49,855,818 43,709,733 40,664,336

Net profit 7,785,116 6,972,932 10,977,909 9,537,722 8,165,734

Cash dividend 7,055,037 7,015,196 11,032,635 9,530,000 8,159,393

Pay-out ratio in % of net profit 91% 101% 100% 100% 100%

Cash dividend / ordinary shares SRD 5.00 74.37 73.95 116.30 100.46 86.01

Number of issued and paid-in ordinary shares 94,860 94,860 94,860 94,860 94,860

Net profit per SRD 5.00 share 82.07 73.51 115.73 100.55 86.08

Share price at year-end 316.77 387.43 583.88 649.51 336.01

Share price/earnings per share 3.9 5.3 5.0 6.5 3.9

EUR exchange rate (SRD/EUR)

Year-end 9.000 7.920 4.590 4.080 4.610

Average 8.524 6.969 3.818 4.460 4.450

USD exchange rate (SRD/USD)

Year-end 7.520 7.500 4.200 3.350 3.350

Average 7.564 6.311 3.446 3.350 3.350

SURINAAMSE BROUWERIJ N.V. 2017 ANNUAL REPORT 12 13

effectively in order to make the temporarily from the Ringweg brewhouse in order to increase Developments within the right decisions for the business. location, the aforementioned our production capacity and the Our contribution to the ‘Refuel for multidisciplinary projects together expansion of our warehouse Supply Chain department Growth’ cost-saving programme with our 2020 strategy resulted in storage capacity for ingredients, was the considerable cost saving on more regular collaboration, and this materials and finished products. The ingredients and packaging materials benefited the operating result in plan is for Surinaamse Brouwerij to which was achieved in collaboration many areas. be fully equipped for the future with Many operational and staffing we explained why safety has the with the Finance and Procurement the new ‘state of the art’ brewhouse changes took place in the Supply highest priority and how we are departments. By making use of Over recent years we have worked by the end of 2018. Chain department in 2017. We implementing that. These sessions our regional contacts we were hard to draw up the Masterplan worked hard on the introduction not only ensured that safety able to improve our contracts with which describes all the construction of new products together with awareness increased, but also current suppliers and/or switch to work and production modifications new packaging materials. All the improved the collaboration with the other suppliers in order to achieve required to get our brewery ready preparations have been made for contractors. cheaper purchase prices. for the future. The first steps were the major construction work which taken in 2017 in realising the will take place in 2018. There was Quality is also very important to Although the Commerce and Masterplan, including preparations intensive collaboration with other us. We are constantly measuring Support departments are operating for the construction of a new disciplines in order to improve the and analysing our products and operating result in the short and processes so that we can offer long term. We also had a ‘reality our customers the best product. check’ when we suffered two Every year we are audited by the accidents in the brewery after 1,082 prestigious lower case institute, accident-free days. In short, it was a which spends a week carefully eventful year for the company. evaluating our processes and quality during the brewing, Safety has the highest priority in fermentation, maturation, the brewery, particularly in the packaging, sale and distribution of Supply Chain. In 2017 we were beer. The outcome of the audit in well on our way to our third year November was that we meet the without accidents, but unfortunately highest qualification criteria and accidents occurred on 11 October have thereby extended our ISO and 30 December. Investigations 9001 and FSSC 22000 certificates. into the cause found - as with most In addition to the audit, our accidents - that human error was quality department made a major the most important underlying contribution to the realisation of cause. We have used toolbox the two new Radler flavours that we sessions to increase the employees’ launched in 2017. alertness and one of the victims also shared his story with all employees We introduced the HEINEKEN ‘Sales during the brewery day. This has & Operations Planning (S&OP) had a big impact. programme in 2017 with the aim of optimising the supply and demand The many construction activities between Sales and Supply Chain in the brewery meant that we also departments, with the prerequisites had to put extra focus heavily on of looking 6 and 12 months ahead contractor safety in 2017. We invited and never being ‘out of stock’. This all 16 parties working in the brewery programme also encourages us to to a number of meetings at which collaborate more efficiently and

SURINAAMSE BROUWERIJ N.V. 2017 ANNUAL REPORT 14 15

Commercial insights

Surinaamse Brouwerij is always districts at strategic locations on innovating, and this year we have the water or near the river which again launched new product are also visited by many tourists. innovations, namely Radler ginger Apart from the fact that this enables and cherry and Radler lime in a us to provide local consumers with new 33cl can packaging. The trick fresh and cold beer, Surinaamse is to continue to surprise, innovate Brouwerij is thereby also fulfilling its and to ensure that PARBO Bier responsibility to collect the empty maintains its brand value. bottles that local residents can bring to these locations. We have also introduced Sol, a refreshing Mexican beer, to The ‘Revenue Management’ (RM) Suriname, and we introduced the programme was launched from Heineken® 25cl can in order to our regional head office in order offer the ‘premium’ segment a more to grow our revenue. The aim of affordable product. this programme is to respond to consumer behaviour with price, Simultaneous to rolling out our packaging and availability of the innovation programme, we have right product in such a way that devoted a lot of time to in-store extra revenue is generated. promotions. We have invested substantially in the number of The RM and S&OP programme merchandisers in order to provide offer us the opportunity to predict selected stores with the right much better from within Commerce promotional displays. what the expectations are so that we can achieve efficiency gains in We have also rolled out our procurement and stock control. ‘Excellent Outlet Execution Strategy’ This will result in predictability further, whereby the focus has been and structure and improved placed on the ‘Picture of Success’ in collaboration between Commerce, our sales outlets, often defined by Finance and Supply Chain. brand. For example, this means that the PARBO brand is always visible in One of our GtG projects which was the same high quality manner in all launched in 2017 is the ‘customer in stores, with features including sub- our heart’ project. With this project zero refrigerators. we have started working in an even more service-oriented way, namely Our existing programme to build from ‘Good to Great’. We have sales outlets domestically continued carried out a lot of research in order in 2017. Hence we have established to improve our service as perceived another 4 outlets in partnership by customers. The first results of with local entrepreneurs in various this will become visible in 2018.

SURINAAMSE BROUWERIJ N.V. 2017 ANNUAL REPORT 16 17

Our employees

achieved a high score compared colleagues at Surinaamse Brouwerij person’s way of working in order to to other organisations within have a positive effect on these strengthen the collaboration and HEINEKEN worldwide. At 1.58% the employees themselves and on the further improve the results. We are absenteeism percentage is very low outside world. very enthusiastic about the model compared to other organisations. and will roll it out further within the This figure is also fairly consistent Surinaamse Brouwerij has a good organisation in 2018. as a result of good effective policies. understanding with the trade union, Surinaamse Brouwerij implemented which has also shown leadership many changes in staffing of with regard to the employees and the organisation in 2017. The organisation, and partly thanks organisation has 112 employees to that attitude, we were able to and around 70 staff employed conclude a good Collective Labour through contractors both of whom Agreement in May 2017. we want to offer the opportunity to continue to develop. Last year we A lot of time has been devoted to were able to transfer 16 colleagues developing and positioning the LT to another role internally, including over the past year. We have worked 11 promotions. jointly on team-building, which has Over the past few years, The aim is positive: we are working been supported by the Insights Surinaamse Brouwerij has adopted to support people in a changing Changes in the organisational Discovery model amongst other the ‘Performance Management’ world and offer them the right tools structure and the departure of a things. This model is a simple colour cycle, in which every employee is for the future. number of people also allowed us model that provides insight into one given targets to achieve every year. to hire 13 new talented colleagues another’s behavioural preferences We recognise that the targets are As a company, Surinaamse with the training, knowledge and and is intended to create mutual challenging, partly because we Brouwerij again achieved high experience needed to further understanding about each work in an environment which is scores in the Climate Survey study in strengthen our organisation. constantly changing and requires 2017. Employees and management adaptation. shape the work together, and both We are enormously proud of the sides need to be engaged with the fact that for the first time in history In practice not everyone is able process. With an engagement index we have been able to transfer to meet the (new) expectations of 83% amongst all employees, we two colleagues from Surinaamse that are set. That is why this year Brouwerij to other HEINEKEN we have introduced the personal organisations outside Suriname, improvement plan with the aim of E one to Curaçao and one to the helping employees with ongoing E I Netherlands. lagging performance to get on top 3% of their job again. We have been able to fill many Surinaamse Brouwerij does not positions with young Surinamese have an inherent clear ‘feedback’ talent, and employees can also culture. It is important to formalise continue to develop at their both personal development and current level. The opportunities Our score personal improvement. and possibilities for development offered to local Surinamese

SURINAAMSE BROUWERIJ N.V. 2017 ANNUAL REPORT 18 19

Management team

Ed Weggemans | Managing Director

General Manager at Surinaamse Brouwerij N.V. since January 2016. Joined HEINEKEN in 1990. Occupied sales roles at HEINEKEN Netherlands and then commercial roles at HEINEKEN Export Group in Eastern Europe and Asia. Has occupied management positions in recent years in: Dubai (Commercial Manager), Nigeria (Commercial Manager), the Netherlands (General Manager Europe Export & Global Duty Free). Managing Director he has overall responsibility for all areas: Finance, Human Resources, Corporate Relations, Supply Chain, Marketing, Sales and Corporate IT.

Friso Lefeber | Supply Chain Manager

Supply Chain Manager at Surinaamse Brouwerij N.V. since June 2017. Joined HEINEKEN in 2003, where he started as an Management Trainee and then worked as a Procurement Analyst, Logistics Supervisor and Maintenance Manager. In 2014 he and his family moved to Haiti, where he worked as Logistics and Production Manager at the local HEINEKEN Brewery.

Zohrina Ramdjan Habieb | Finance Manager

Finance Manager at Surinaamse Brouwerij N.V. since May 2008. Joined Surinaamse Brouwerij N.V. in 2002 as Internal Financial Controller. Before joining HEINEKEN she worked as an associate auditor with Ernst & Young Accountants.

Fayzal Abdoelrazak | Commercial Manager

Sales Manager at Surinaamse Brouwerij N.V. since October 2014. Joined Surinaamse Brouwerij N.V. in 2012 as Global Information Services Manager. Before joining Heineken he worked on various projects as Business Developer in both the Netherlands and Suriname. Occupied various management roles with listed companies in the Netherlands (USG People, KPN, TPG).

Linda van Donk | Human Resourses Manager

Human Resources Manager at Surinaamse Brouwerij N.V. since October 2015. Joined HEINEKEN International in 2011, and has occupied various HR roles there. Before joining HEINEKEN she worked at organisational consultants Hay Group, where she carried out HR projects for various companies.

SURINAAMSE BROUWERIJ N.V. 2017 ANNUAL REPORT 20 21

Report from the Supervisory Board

In accordance with the provisions of article 17 paragraph 3 of the articles of association we are submitting the annual accounts prepared by the Directors of Management team for approval by the General Meeting of Shareholders. The annual report have been audited by Lutchman & Co. We ask you to approve this annual report together with the audit report from Lutchman & Co.

The consolidated net profit for With our approval, the interim construction works, the operating Thanks the financial year 2017, including dividend of SRD 283 per SRD 5 results, communication with We would like to express our the actuarial results arising from share and SRD 2,830 per SRD 50 the authorities concerning tax gratitude for the way in which the provision for medical expenses preference share was made payable measures relating to the production Management and employees have after retirement and the exchange in November 2017. Taking account of beer, the payment of interim again worked actively to cope with rate differences arising from the of this, if our proposal is approved, dividend, the financial position, the challenging market conditions in revaluation of group loans, is SRD the final dividend will be set at SRD risk management and auditing of 2017 and have again succeeded in 60,151,031. In accordance with 348 per SRD 5 ordinary share and the business. Attention was also ending the year on a positive note. article 18 paragraph 2 of the articles SRD 3,480 per SRD 50 preference paid to changing market conditions of association a sum of SRD 3.00 per share. These sums include the and how to respond to these. The Supervisory Board members preference share with a nominal aforementioned statutory dividend, members actively participated in the value of SRD 50 of this will accrue to and will be made payable with discussions and decision-making in Mr M. Loor (Chairman) the preference shareholders, and a deduction of the dividend tax due. the Board’s meetings. sum of SRD 0.25 per ordinary share Mr L. Naarden with a nominal value of SRD 5 will The approval of the annual report In addition to the meetings of accrue to the ordinary shareholders. serves to discharge the Management Management, the Supervisory Board Mr H. Parson These sums are 6% and 5% of responsibility for its management members had discussions with the respectively of the issued and paid-in and the Supervisory Board of Executive Board in preparation Mr A. Ramdin capital per share. The preference responsibility for its supervision. for meetings of the Board and and ordinary shareholders thereby to supervise the progress of the have a statutory entitlement to Supervisory Board strategy. Paramaribo, 14 May 2018 a payment of SRD 132 and SRD The composition of the Supervisory 23,715 respectively, after which a Board changed in 2017 with the Safety and Environment sum of SRD 60,127,184 will be at the appointment of Mr A. Ramdin as a The Supervisory Board is satisfied disposal of the General Meeting of Board Member at an Extraordinary with the commercial and financial Shareholders. Meeting of Shareholders on 26 strategy pursued, but also with the October 2017. The Board has efforts being made by Surinaamse The board’s proposal is to pay a decided to appoint Mr M. Loor as Brouwerij in the areas of safety dividend from this sum of SRD Chairman. and the environment. Substantial 630.75 per SRD 5 ordinary share and progress is being made with a high SRD 6,307 per SRD 50 preference Meetings degree of employee engagement. share. This makes the total dividend The Supervisory Board met on 29 This not only enhances the welfare including the statutory part SRD 631 March, 21 June and 26 October 2017. of the employees, but also helps to per SRD 5 ordinary share and SRD Various topics were discussed safeguard the future of the business. 6,310 per SRD 50 preference share. at these meetings, including the strategy, investments and

SURINAAMSE BROUWERIJ N.V. 2017 ANNUAL REPORT 22 23

Supervisory Board

Martin Loor

Retired from De Surinaamsche Bank N.V. in 2017, where he had worked since 1998, most recently in the role of Financial Director. Prior to his career with DSB he occupied management positions with companies including Volkskredietbank in Suriname and French accents Societe des Bois Tropicaux in French Guyana. His activities now involve consultancy on financial and economic matters.

Hemmo Parson

Company lawyer at HEINEKEN head office in Amsterdam since 2003 with overall legal responsibility for the HEINEKEN operations in the Americas region. Also a member of the HEINEKEN Americas Leadership Team. Director of Carib Development Company Ltd (Trinidad) and of Desnoes & Geddes Ltd. (Jamaica). Prior to his career with HEINEKEN he worked as an attorney with Allen & Overy LLP and Loef Claeys Verbeke in Amsterdam.

Albert Ramdin

Following his return to Suriname in 1993, Albert Ramdin worked in various roles within the civil service, after which he worked as Marketing Manager with British American Tobacco Suriname. Between 1997 and 2015 he held the following positions, amongst others: Ambassador for Suriname with the Organisation of American States in Washington DC; Assistant Secretary General of the Caribbean Community in Georgetown, Guyana; Adviser to the Secretary General of the OAS; Assistant Secretary General of the OAS. Following his return to Suriname in 2015 he first worked as Adviser to the Minister of Foreign Affairs. Since April 2016 he has been a member of the Management Team of Newmont Suriname in the role of Senior Director External Relations. He also holds a host of advisory positions in regional and international organisations.

Lucien Naarden

Employed with various profit and non-profit organisations in the Netherlands, the Netherlands Antilles, Suriname, the Caribbean and the United States as an occupational and organisational psychologist since 1981. Owner and Director of Naarden Advice and Management Enterprise, LLC., Suriname Yellow Pages N.V. and Master Licensee for Leadership Management International, Inc. for Florida and the Caribbean Region.

SURINAAMSE BROUWERIJ N.V. 2017 ANNUAL REPORT 24 25

Protecting water resources Corporate Social Responsibility Water is used at various points during the brewing process in our Supply Chain. Beer consists of about 95% water, but water is also used - amongst other things - for cleaning returnable bottles and during the pasteurisation In all the disciplines within Surinaamse Brouwerij Corporate Social Responsibility (CSR) is a process. topic that is on the agenda every day, and also forms part of our business strategy. Respect for As demand for clean drinking water continues to rise worldwide, people and the environment is important in everything we do and how we do it, both now and Surinaamse Brouwerij acknowledges its responsibility by using water as in the future. Our sustainability strategy, Brewing a Better World, focuses on 6 areas where we sparingly as possible during the production process and also by treating the can make the biggest difference and we take account of environmental and social issues when waste water in our own water treatment plant. developing our strategy. These areas are Clean Water, Reducing Carbon Emissions, Sustainable Procurement, Responsible Alcohol Consumption, Promoting Health and Safety and Social Growth. We achieve progress in these areas every year. Although we know that there is still much to do, Reducing CO2 emissions we are seeing a structural improvement in our sustainable growth combined with innovation. Climate change is one of the biggest threats confronting us worldwide. As part of HEINEKEN, Surinaamse Brouwerij is also actively contributing to the reduction in CO2 emissions. Hence we are able to reuse 85% of our waste streams from production together with our recycling partners, and we have managed to export more than 60 metric tons of glass and plastic waste for reuse.

Local and sustainable important elements of sustainable procurement procurement in our ‘Brewing a Sustainability is managed from Better World’ programme. within Finance by closely monitoring We source Surinamese rice locally compliance with Supplier. The as part of the brewing recipe. Supply Code is a crucial tool for communicating our values and The programme also involves expectations with regard to the purchasing primarily local services, environment, human rights and such as support with marketing ethical business practices to our and sales, point-of-sale material, suppliers. The aim of this code financial services etc. is to stipulate requirements for the monitoring of and We are also contributing by compliance with the Supplier purchasing only environmentally- Code. The implementation of the friendly energy efficient Supplier Code is one of the most refrigerators.

SURINAAMSE BROUWERIJ N.V. 2017 ANNUAL REPORT 26 27

entrepreneurs which is contributing to the sustainable development of tourism in the interior. Over the past two years Surinaamse Brouwerij has been carrying out a project whereby sales outlets with terraces are being built along the rivers of Suriname in Health and safety Growing with communities conjunction with local entrepreneurs Our employees are close to The pillar ‘Growing with communities’ with the aim of serving tourists, the product in the Surinaamse enables us to contribute to the creating a meeting place for the local Brouwerij. On the basis of ‘doing communities in which we operate. community and - very importantly what you say’, we also encourage We are growing along with local - establishing a collection point for our people to consume alcohol communities by - for example - the returnable packaging materials responsibly, by utilizing the internal creating jobs, paying taxes and (bottles and crates). The terraces that campaign Cool@Work which supporting local suppliers. are being built are multifunctional prohibits the consumption of and provide employment and alcohol during working hours. One of the activities in that regard structure in the area. They also is our Community Service and our enable the community to gather non-commercial sponsorships. Our for social and cultural events. Six policy in this area enables us to of these outlets have already been contribute to activities that benefit created, and we will expand this the Surinamese community, whereby number further in 2018. that contribution is primarily driven Responsible consumption ‘when you drive, never drink’. bright yellow cars. At Surinaamse Our employees are conscious of the by the social engagement that is felt In order to tackle the challenges of Surinaamse Brouwerij is one of And during the busy month of Brouwerij we are always thinking fact that they work with alcoholic by the employees of Surinaamse the returnable bottle system, we the three founders of Stichting December, we did this using a mini- about the consumer when we products and that model social Brouwerij. established a collaboration with Verantwoord Alcoholgebruik documentary which showed what develop our campaigns. behaviour is important with respect Organize Global in October 2017 Suriname (Foundation for alcohol does to your body, how to to our customers and consumers. Activities that qualify for this have to to collect our Parbo deposit bottles Responsible Alcohol Consumption be responsible with alcohol, and Hence we want to give something We not only say it, we also monitor comply with pre-defined stipulations, from consumers’ homes. The Suriname - Stivasur). This is a self- particularly that driving with alcohol back to the people of Suriname and measure it. Safety has the and the award is done on the basis of returnable bottle system has much regulating organisation in which is the wrong choice. with the Parbo Night events. These highest priority for us, and in this meeting these stipulations. less impact on the environment than we work with others to promote free events are attended by 15,000 regard we introduced the HEINEKEN single-use packaging. However this responsible alcohol consumption. We hold water breaks during our visitors. ‘Life Saving Rules’ in 2017 for Our partnerships such as the one system is still a challenge in Suriname Parbo events where alcohol is sold employees including our drivers and with Conservation International because consumers do not optimally Hence we focused on road safety when we distribute free water over sales representatives, whereby they Suriname also contribute to the return the retuable bottles through in 2017, with Stivasur through a periods of around 20 minutes and were extensively instructed about preservation and protection of the available channels. billboard campaign. This campaign encourage people to drink less issues including road safety ranging nature. Within this partnership we draws consumers’ attention to the (quickly) and to alternate with water. from defensive driving to checking are contributing to the ‘Friends of negative consequences of misusing tyre pressures. In this way we are Green Suriname’ programme. We alcohol and the risks of drunk As in previous years, we again had taking responsibility together for a recently extended this partnership by driving. It was the first road safety a partnership with Surinaamse safe environment. another three years. campaign conducted together with Taxicentrale STC 1660 in 2017. the Suriname Police Service during Surinaamse Brouwerij provides Surinaamse Brouwerij is a business Road Safety Month. During the the taxis with stickers with the text that encourages sustainable UEFA Champions League matches ‘Biertje op, laat je rijden’ (‘Had a entrepreneurship. In the interior we promoted responsible alcohol beer, get a ride’), which is now a The F1 FORMULA 1 logos, F1 logos, FORMULA F1, FIA 1, FORMULA ONE WORLD CHAMPIONSHIP, GRAND PRIX and related marks are trade marks of Formula One Licensing a Formula BV, 1 company. All rights reserved. of Suriname, the brewery is consumption with the campaign very recognisable campaign on the investing in partnerships with local

SURINAAMSE BROUWERIJ N.V. 2017 ANNUAL REPORTHNK_F1_WYDND_SQUARE_300x300.indd 1 14/03/2018 15:50 28 29

Sustainability report

Surinaamse Brouwerij - Our efforts towards Brewing a Better World Our global commitment Brewing a Better orld focuses on six areas: Sustainability has been fundamental to HEINEKEN for many years. Today, At Surinaamse Brouwerij we have put sustainability at the core of our activities. This is our progress in 2017. reci aer resrses our global ambition is to Brew a Better World from barley to bar. It’s this eci emissis commitment that unites our global brands in respecting people, planet and prosperity. rci ssaial cai ressile csmi

We focus on the six areas where we can make the biggest difference. rmi eal a sae

This shapes our contribution towards delivering the UN Sustainable ri i cmmiies Development Goals for 2030. Overall we’re making good progress, putting us on track to reach most of our Brewing a Better World 2020 commitments with more to do in some areas.

Surinaamse Brouwerij - Our contribution towards Brewing a Better World Promoting growth and prosperity in Suriname In 2017 In 2017, we created a new venture with local As announced last year, we invested entrepreneurs in the remote interior of Suriname. 10% of our Heineken® media budget Our financial investment has a total of 10 new outlets which function as community meeting points to promote new in the campaign ‘When You Drive, business in these regions. The outlets provide a focus for the local community and a hub for collecting empty Never Drink’ 60 MT €15 million bottles, thus also promoting our recycling initiatives. of glass cullet and HDPE (plastic), invested (2017-2018) in expanding which is the material we use for capacity, upgrading facilities and other crates, was exported for recycling capital investments. Our partnership with projects, for example Building with for the first time, reducing our Conservation International Nature at Weg naar Zee which impact on the environment. We’re committed to protecting and has tackled coastal erosion and preserving our country’s unique restored part of the coastline, and 4.9 hl/hl natural heritage. the renovation of the Voltzberg Our water use in production For the last three years, Surinaamse Research Station which houses Ensuring contractor safety at the increased by 5%, mainly due to Brouwerij has been a member of experts undertaking research on the introduction of new products; Surinaamse Brouwerij €32,000 the Friends of Green Suriname. Central Suriname Nature Reserve. As we expand our brewery, safety compared to baseline year 2008 our donated to support the work of We’ve supported a number of remains a top priority. Ensuring our water intake was reduced by 26% NGOs in environmental conservation, 100% construction contractors follow the education and responsible compliance in contractor safety. same strict safety standards as we consumption. apply within our breweries has been a key concern. To address it, we we CO2 In 2018, conducted safety briefings with all of we will initiate and drive collaboration our contractors which have helped to 16.8 kg CO2 -eq/hl with stakeholders in the market for improve both safety awareness Our relative CO2 emissions from sustainable glass and can recycling. and collaboration. production increased by 19%; we are LGBT investigating the cause and will take We signed the LGBT declaration of actions to reverse this trend. Paramaribo, aiming to support a LGBT-inclusive work environment in Suriname. Driving a sustainable business is essential to ensure that our company and brands succeed in the long term.

SURINAAMSE BROUWERIJ N.V. 2017 ANNUAL REPORT 30 31

Report on the 2017 consolidated financial statements

SURINAAMSE BROUWERIJ N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 32 33

Consolidated balance sheet as at 31 December Consolidated income statement for the year (Before proposed profit appropriation) ended 31 December

2017 2016 2017 2016

Assets Note SRD SRD Note SRD SRD

Tangible fixed assets 1 164,195,495 132,107,774 Revenue 14 353,150,599 283,733,642

Intangible assets 2 8,970,631 9,697,990

Long-term receivables 137,530 275,059 Other income 432,279 10,630

Deferred tax asset 3 9,999,441 4,025,903

Total non-current assets 183,303,097 146,106,726 Raw materials, consumables and services 15 -174,754,335 -125,539,732

Personnel expenses 16 -41,144,302 -33,260,216

Inventories 4 24,106,293 30,419,873 Depreciation and amortization 17 -24,192,285 -15,570,113

Securities 5 1 1 Total expenses -240,090,922 -174,370,061

Income tax receivable 6 6,485,427 6,070,900 Results from operating activities 113,491,956 109,374,211

Receivables 7 27,056,547 8,960,040 Net finance expense 18 -9,808,832 -33,445,522

Cash and cash equivalents 8 59,442,735 35,597,111 Profit before income tax 103,683,124 75,928,689

Total current assets 117,091,003 81,047,925 Income tax expense -37,325,925 -27,334,328

Total assets 300,394,100 227,154,651 Net profit 66,357,199 48,594,361

Attributable to: Equity and liabilities - Shareholders of Amstel Brouwerij B.V. 50,630,543 37,077,497 Shareholders’ equity 62,923,019 64,923,507 - Other shareholders 15,726,656 11,516,864

Deferred tax liabilities 9 3,016,620 3,686,288

Provision post-retirement medical benefit plan 10 8,574,476 5,699,161

Long term incentive plan 1,120,604 670,963

Long-term loans 11 108,000,000 31,680,000

Total non-current liabilities 120,711,700 41,736,412

Income tax payable 12 29,984,993 22,011,635

Other current liabilities 13 86,774,388 98,483,097

Total current liabilities 116,759,381 120,494,732

Total equity and liabilities 300,394,100 227,154,651

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 34 35

Consolidated statement of changes in Consolidated cash flow statement shareholders’ equity 2017 2016 SRD SRD Issued and Retained Total Cash flow from operating activities paid-in capital earnings equity Net profit 66,357,199 48,594,361 SRD SRD SRD Depreciation and amortization 24,192,285 15,570,113 Balance as at 1 January 2016 476,500 55,273,858 55,750,358 (Gain)/ loss on sale of tangible fixed assets -432,279 -10,630 Distribution final dividend 2015 - -25,516,553 -25,516,553 Interest (income)/ net 942,949 422,104 Income tax expense 27,334,328 Distribution interim dividend 2016 - -13,913,800 -13,913,800 37,325,925 Cash flow from operating activities before changes in Net profit 2016 - 48,594,361 48,594,361 working capital and provision 128,386,079 91,910,276 Statutory dividend 2016 - -23,847 -23,847 Actuarial results due to provision for Change in inventories 6,313,580 -18,253,537 post-retirement medical benefits - 42,133 42,133 Change in receivables -18,511,035 -2,051,316 Excess long term incentive - -9,145 -9,145 Change in current liabilities 1,463,599 25,324,868 Total change in working capital 5,020,015 Balance as at 31 December 2016 476,500 64,447,007 64,923,507 -10,733,856 Change in provision post-retirement medical benefits 631,267 -469,674 Cash flow from business activities 118,283,490 96,460,617 Balance as at 1 January 2017 476,500 64,447,007 64,923,507 Distribution final dividend 2016 - -34,951,253 -34,951,253 Interest paid and received -474,002 -147,193 Distribution interim dividend 2017 - -26,969,900 -26,969,900 Income and dividend tax paid -36,761,702 -19,151,336 Net profit 2017 - 66,357,199 66,357,199 Cash flow from operational activities 81,047,786 77,162,088

Statutory dividend 2017 - -23,847 -23,847 Investments in tangible fixed assets -56,018,305 -52,175,028 Revaluation intercompany loan - -5,120,000 -5,120,000 Investments in intangible assets - -10,004,983 Actuarial results due to provision for post-retire- Proceeds from sale of tangible fixed assets 897,939 65,297 ment medical benefits - -1,391,309 -1,391,309 Cash flow from investing activities -55,120,366 -62,114,714 Excess Long term incentive plan - 98,622 98,622

Balance as at 31 December 2017 476,500 62,446,519 62,923,019 Free operational cash flow 25,927,420 15,047,374

Dividends paid -37,866,065 -39,110,732 Change in long-term incentive plan 548,264 261,872 Long term loan receivable 137,529 -275,059 Group loan from Heineken International B.V. 71,200,000 31,680,000 Cash flow from financing activities 34,019,728 -7,443,919

Net cash flow 59,947,148 7,603,456 Cash and cash equivalents (including bank overdraft) as at 1 January -504,412 -8,107,867 Cash and cash equivalents (including bank overdraft) as at 31 December 59,442,736 -504,411

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 36 37

3. Significant accounting policies Foreign currency differences arising from transactions Notes to the consolidated financial General and retranslation are recognized in the income The accounting policies set out below have been statement. statements applied consistently to all periods presented in these consolidated financial statements and have been applied C. Tangible fixed assets consistently by SBNV subsidiaries, unless otherwise 1. Owned assets 1. Reporting Entity stated. Tangible fixed assets comprise of property, plant and Surinaamse Brouwerij N.V. (SBNV or the ‘Company’) is B. Basis of measurement equipment (PPE) which are measured at cost less a limited liability company established and domiciled in These consolidated financial statements have been A. Basis of consolidation accumulated depreciation and accumulated impairment Paramaribo, Suriname. The address of the Company’s prepared on the historical cost basis unless otherwise 1. Subsidiaries losses. Cost comprises the initial purchase price registered office is Brouwerijweg 1, Paramaribo, indicated. Subsidiaries are entities controlled by SBNV. SBNV increased with expenditures that are directly attributable Suriname. The company is 76.3% owned by Amstel controls an entity when it is exposed to, or has rights to, to the acquisition of the assets (such as transport and Brouwerij B.V., a corporation established and registered C. Functional and presentation currency variable returns from its involvement with the entity and non-recoverable taxes). The cost of self-constructed in Amsterdam, the Netherlands, a wholly-owned The consolidated financial statements are presented has the ability to affect those returns through its power assets includes the cost of materials and direct labor and subsidiary of Heineken N.V. in Suriname dollars, which is the company’s functional over the entity. The financial statements of subsidiaries any other costs directly attributable to bringing the asset currency. All financial information presented in SRD has are included in the consolidated financial statements to a working condition for its intended use. Group Companies been rounded to the nearest Suriname dollar unless from the date that control commences until the date that Surinaamse Brouwerij N.V. is at the head of a group of stated otherwise. control ceases. Spare parts that are acquired as part of an equipment legal entities (collectively referred to as ‘SBNV Group’). On purchase and only to be used in connection with this July 4, 2016, Surinaamse Brouwerij N.V., as sole member D. Use of estimates, assumptions and judgments 2. Loss of control specific equipment that is integral to the functionality of the board, acquired dominant control in the Stichting The consolidated financial statements are prepared Upon the loss of control, SBNV derecognizes the of the related equipment are capitalized and amortized Super Trans Atlantic who has the economic ownership of based on management making certain judgments, assets and liabilities of the subsidiary and the other as part of that equipment. In all other cases, spare the economic the intangible and tangible assets. estimates and assumptions that affect the application components of equity related to the subsidiary. Any parts are carried as inventory and recognized in the of accounting policies and reported amounts of assets resulting gain or loss is recognized in the income income statement as consumed. Where an item of PPE The consolidated financial statements of the company as and liabilities, income and expenses. Estimates in the statement. comprises major components having different useful at and for the year ended 31 December 2017 comprise of financial statements are, amongst others, related to lives, they are accounted for as separate items of PPE. Surinaamse Brouwerij N.V., Parbo Centrale N.V., Stichting the estimated economic life span and residual values of 3. Transactions eliminated on consolidation Returnable packaging in circulation are recorded as PPE Super Trans Atlantic and Premium Beverage Suriname the intangible and tangible fixed assets, provisions for Intra-SBNV balances and transactions and any unrealized and a corresponding liability is recorded in respect of N.V. (together referred to as ‘SBNV Group’). Premium deferred tax liabilities, post-retirement medical benefit gains and losses or income and expenses arising from the obligation to repay the customers’ deposits. Deposits Beverage Suriname N.V. is a dormant company. plan, obsolete inventories and doubtful debtors. Actual intra-SBNV transactions, are eliminated in preparing the paid by customers for returnable items are reflected in results may differ from these estimates. consolidated financial statements. the balance sheet within the current liabilities. SBNV Group is primarily involved in the brewing, bottling, importation, selling, distributing and exportation of beer The estimates and underlying assumptions are reviewed B. Foreign currency 2. Subsequent expenditures under the brand names PARBO Bier, PARBO Chiller, on an ongoing basis. Revisions to accounting estimates Transactions in foreign currencies are translated at the The cost of replacing a part of an item of PPE is PARBO Light, PARBO Radler, Sranan Biri, Heineken ®, are recognized in the period in which the estimates are exchange rates at the dates of the transactions. recognized in the carrying amount of the item or Desperados, SOL and Vitamalt. revised and in any future periods affected. Monetary assets and liabilities denominated in foreign recognized as a separate asset, as appropriate, if it is currencies at the reporting date are retranslated to probable that the future economic benefits embodied 2. Basis for the preparation of the financial The information about assumptions and estimation the functional currency at the exchange rate as at the within the part will flow to the company and its costs statements of uncertainties and critical judgments in applying balance sheet date using the reference rates of can be measured reliably. The carrying amount of the A. Statement of compliance accounting policies that have the most significant effect De Surinaamsche Bank NV. These exchange rates are as replaced part is derecognized. The costs of day-to-day The consolidated financial statements of SBNV Group on the amounts recognized in the consolidated financial follows: servicing of PPE are recognized in the income statement have been prepared in accordance with generally statements are described and disclosed within the notes, when incurred. accepted accounting principles for financial reporting. whenever necessary. These consolidated financial statements have been USD 1 = SRD 7,52 (Ultimo 2016: USD 1 = SRD 7,50) 3. Depreciation prepared by management of the company and will be EURO 1 = SRD 9,00 (Ultimo 2016: EURO 1 = SRD 7,92) Deprecation is calculated over the depreciable amount, submitted for adoption to the Annual General Meeting of which is the cost of an asset, or other amount substituted Shareholders on 20 June 2018. for cost, less its residual value.

SURINAAMSE BROUWERIJ N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 38 39

Land is not depreciated as it is deemed to have an are included in amortization. Net gains and losses are transaction costs. constructive obligations to pay further contributions if the infinite life. Depreciation on other PPE is charged to recognized in the income statement when the significant fund does not hold sufficient assets to pay all employees the income statement on a straight-line basis over the risks and rewards of ownership have been transferred If SBNV Group has a legal right to offset financial assets the benefits relating to employee service in the current estimated useful life of the items of PPE. Project in to the buyer, recovery of consideration is probable, the with financial liabilities and if SBNV intends either to and prior periods. progress are not depreciated. associated costs can be estimated reliably, and there settle on a net basis or to realize the asset and settle the is no continuing management involvement with the liability simultaneously, financial assets and liabilities Obligations for contributions to the defined contribution The estimated useful lives for the current and intangible asset. are presented in the balance sheet as a net amount. The plan are recognized as an employee benefit expense in comparative years are as follows: right of set-off is available today and not contingent on the income statement in periods during which services • Buildings and premises 15-40 years E. Inventories a future event and it is also legally enforceable for all are rendered by employees. • Plant and machinery 10-30 years 1. General counterparties in a normal course of business, as well as • Other tangible fixed assets 5-15 years Inventories are measured at the lower of cost and in the event of default, insolvency or bankruptcy. 2. Defined benefit plan net realizable value. The cost of inventories is based A defined benefit plan is a post-employment benefit 4. Gains and losses on sale on average cost formula, and includes expenditures 2. Financial assets plan (pension plan) that is not a defined contribution Net gains on sale of items of PPE are presented in profit incurred in acquiring the inventories, production or A financial asset, mainly trade receivables, is assessed at plan. Typically, defined benefit plans define an amount and loss as other income. Net losses on sale are included conversion costs and other costs incurred in bringing each reporting date to determine whether there is any of pension benefit that an employee will receive on in depreciation. Net gains and losses are recognized in them to their existing location and condition. Net objective evidence that it is impaired. A financial asset is retirement, usually dependent on one or more factors profit and loss when the significant risks and rewards of realizable value is the estimated selling price in the considered to be impaired if objective evidence indicates such as age, years of service and compensation. ownership have been transferred to the buyer, recovery ordinary course of business, less the estimated costs of that one or more events have had a negative effect on of consideration is probable, the associated costs completion and selling expenses. the estimated future cash flows of that asset that can be SBNV’s net obligation in respect of defined benefit can be estimated reliably, and there is no continuing estimated reliably. All impairment losses are recognized pension plan pertains to a provision for post-retirement management involvement with the PPE. 2. Finished products and work in progress in the income statement. An impairment loss is reversed medical benefits. This provision is formed based on Finished products and work in progress are measured at if the reversal can be related objectively to an event commitments by the employer for free medical care D. Intangible assets manufacturing cost based on average cost and takes into occurring after the impairment loss was recognized. for beneficiaries and their relatives entitled to these 1. General account the production stage reached. Costs include an rights. The provision is determined based on actuarial The intangible assets comprise of the acquired brand appropriate share of direct production overheads based 3. Cash and cash equivalents valuations. The calculations are performed annually by a name Sranan Biri and activated computer software. The on normal operating capacity. Cash and cash equivalents comprise cash balances and qualified actuary using the projected unit credit method. intangible assets are measured at cost less accumulated call deposits. Bank overdrafts from an integral part of SBNV recognizes all actuarial gains and losses arising amortization and possible impairments. 3. Other inventories and spare parts SBNV Group’s cash management and are included as a from defined benefit plans immediately in the equity The cost of other inventories and spare parts is based on component of cash and cash equivalents for the purpose (retained earnings), and all expenses related to defined 2. Subsequent expenditure average cost price. Value reductions and usage of parts of the statement of cash flows. benefit plans in personnel expenses, and other net Subsequent expenditure is capitalized only when it are charged to the income statement. Spare parts that finance income and expenses in the income statement. increases the future economic benefits embodied in the are acquired as part of an equipment purchase and only H. Share capital specific asset to which it relates. All other expenditure is to be used in connection with this specific equipment 1. Ordinary and preference shares 3. Share-based payment plan expensed when incurred. are initially capitalized and depreciated as part of the Ordinary and preference shares are classified as equity. Liability for the Long Term Incentive Plan (LTIP) pertains equipment. Where necessary, a provision is recorded for Incremental costs directly attributable to the issue of to the remuneration scheme as maintained by 3. Amortization obsolete inventory, which is offset in the inventory value. ordinary shares are recognized as a deduction of equity, Heineken International for certain expatriates. Amortization is calculated over the cost of the assets, net of any tax effects. or other amount substituted, less its residual value. F. Securities The grant date fair value, adjusted for expected Intangible assets with a finite life are amortized on a The securities are valued at the acquisition cost. 2. Dividends dividends, of the share rights granted is recognized straight-line basis over their estimated useful lives from Dividends are recognized as a liability in the period in as personnel expenses with a corresponding increase the date they are available for use. The estimated useful G. Non-derivative financial instruments which they are declared. in equity over the period that the employee becomes life of software is three (3) years. Acquired brand names 1. General unconditionally entitled to the share rights. The costs of are amortized over a period of 15 years. Non-derivative financial instruments comprise of trade I. Employee benefits the share plan are spread evenly over the performance and other receivables, cash and cash equivalents, loans 1. Defined contribution plan period, during which vesting conditions are applicable 4. Gains and losses on sale and borrowings, and trade and other payables. A defined contribution plan is a post-employment and total amount to be expensed is determined taking Net gains on sale of intangible fixed assets are presented Non-derivative financial instruments are recognized benefit plan (pension plan) under which SBNV pays fixed into consideration the expected forfeitures. in the income statement as other income. Net losses initially at fair value plus any directly attributable contributions into a separate entity. SBNV has no legal or

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 40 41

At each balance sheet date, SBNV revises its estimates rewards have been transferred to the buyer. Deferred tax assets and liabilities are offset if there is a of the number of share rights that are expected to legally enforceable right to offset current tax liabilities vest, recognizes the impact of the revision of original M. Expenses and assets, and they relate to income taxes levied by estimates in the income statement, with a corresponding Expenses are recognized in the year incurred. the same tax authority on the same taxable entity, or on adjustment to equity. different taxable entities which intend to settle current tax liabilities and assets on a net basis or to realize the 4. Short-term employee benefits N. Interest income, interest expense and other net assets and settle the liabilities simultaneously. Short-term employee benefits are measured on an finance income and expense undiscounted basis and are expensed as the related Interest income and expenses are recognized as they P. Earnings per share service is provided. A liability is recognized for the accrue in the income statement, using the effective SBNV presents basic earnings per share (EPS) data for its amount expected to be paid under short-term benefits interest method. ordinary shares. Basic EPS is calculated by dividing the if SBNV has a present legal or constructive obligation profit or loss attributable to ordinary shareholders of the to pay this amount as a result of past service provided Other net finance income and expense pertains to company by the weighted average number of ordinary by the employee and the obligation can be estimated interest on the net defined benefit obligation, and foreign shares outstanding during the year. reliably. currency gains and losses which are reported on a net basis. Q. Cash flow statement J. Provisions The consolidated cash flow statement is prepared using 1. General Dividend income on securities is recognized in the the indirect method. Changes in balance sheet items A provision is recognized if, as a result of a past event, income statement on the date that SBNV’s right to that have not resulted in cash flows such as translation SBNV has a present legal or constructive obligation that receive payment is established. differences and other non-cash items have been can be estimated reliably, and it is probable that an eliminated for the purpose of preparing this statement. outflow of economic benefits will be required to settle O. Income tax the obligation. Provisions are measured at the present 1. General Dividends paid to ordinary shareholders are included value of the expenditures expected to be required to Income tax comprises current and deferred tax. Current in financing activities. Dividends received are classified settle the obligation using a pre-tax rate that reflects tax and deferred tax are recognized in the income as operating activities. Interest paid is also included in current market assessments of the time value of money statement except to the extent that it relates to a operating activities. and the risks specific to the obligation. The increase in business combination, or items recognized directly in the provision due to passage of time is recognized as equity. part of net finance expenses. 2. Current tax K. Revenue Current tax is the expected income tax payable or Revenue from the sale of products in the ordinary receivable in respect of taxable income or loss for the course of business is measured at the fair value of the year, using tax rates enacted or substantively enacted at consideration received or receivable, net of sales tax, the balance sheet date, and any adjustment to income excise duties, returns, customer discounts and other tax payable in respect of previous years. sales-related discounts. Revenue from the sale of products is recognized in the income statement when 3. Deferred tax the amount of revenue can be measured reliably, the Deferred tax is recognized in respect of temporary significant risks and rewards of ownership have been differences between the carrying amounts of assets and transferred to the buyer, recovery of the consideration liabilities for financial reporting purposes and their tax is probable, the associated costs and possible return bases. of products can be estimated reliably, and there is no continuing management involvement with the products. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted at the L. Other income balance sheet date and are expected to apply when the Other income includes gains from sale of PPE. They are related deferred tax asset is realized or the deferred tax recognized in the income statement when risks and liability is settled.

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 42 43

Notes to the consolidated balance sheet

Depreciation is based on the estimated economic The fiscal depreciation for 2017 amounts to SRD Returnable Projects in Land and Plant and Other tang- lives of the relevant assets. As of 1999, the estimated 20,875,511 and the fiscal book value of property, plant 1. Tangible fixed assets buildings machinery ible assets packaging Vehicles progress Total commercial and fiscal lives are no longer similar due to en equipment as at 31 December 2017 amounts to SRD

SRD SRD SRD SRD SRD SRD SRD fiscally accelerated depreciation on specific production 134,254,508. The item ‘projects in progress, pertains to investments. expenses that are capitalized for property, plant and Cost equipment for which the relevant final status at balance Balance as at 1 January 2016 33,294,852 119,940,336 19,858,605 30,894,745 10,811,788 8,239,740 223,040,066 sheet date has not yet been realized.

Additions - - 4,555,085 4,962,243 5,405,343 37,195,018 52,117,689 2. Intangible assets

PIP Activation 22,326,795 6,546,285 - - - -28,873,080 - The movement is as follows: 2017 2016

Disposal - -12,114 -73,950 -526,783 -313,432 - -926,279 SRD SRD

Balance as at 31 December 2016 55,621,647 126,474,507 24,339,740 35,330,205 15,903,699 16,561,678 274,231,476 Book value as at 1 January 9,697,990 166,750 Additions - 10,004,983

Balance as at 1 January 2017 55,621,647 126,474,507 24,339,740 35,330,205 15,903,699 16,561,678 274,231,476 Amortization -727,359 -473,743

Additions 93,230 - 6,901,506 8,329,807 3,778,470 36,915,292 56,018,305 Book value as at 31 December 8,970,631 9,697,990

PIP Activation 5,503,369 8,800,353 - - - -14,303,722 - The Additions in intangibles fixed assets pertains to sales applications to support the new way of working Disposals -525,278 -10,067,405 -319,643 - -2,463,798 - -13,376,124 the purchase of the brand name Sranan Biri and the within the sales organization. Balance as at 31 December 2017 60,692,968 125,207,455 30,921,603 43,660,012 17,218,371 39,173,248 316,873,657 purchase of software for SEM and K-Store, two new

Accumulated depreciation 3. Deferred tax asset

Balance as at 1 January 2016 -17,250,988 -69,676,915 -14,311,545 -19,780,226 -6,936,607 - -127,956,281 The movement of this item is as follows: 2017 2016

Depreciation charge for the year -1,711,211 -5,706,939 -2,800,572 -3,059,663 -1,817,986 - -15,096,371 SRD SRD

Disposals - - 84,937 530,581 313,432 - 928,950 Loss before income tax Surinaamse

Balance as at 31 December 2016 -18,962,199 -75,383,854 -17,027,180 -22,309,308 -8,441,161 - -142,123,702 Brouwerij and Stichting Super Trans Atlantic 17,603,356 11,183,063

Balance as at 1 January 4,025,903 -

Balance as at 1 January 2017 -18,962,199 -75,383,854 -17,027,180 -22,309,308 -8,441,161 - -142,123,702 Net loss (36% tax rate) 6,337,208 4,025,903

Depreciation charge for the year -1,611,082 -6,148,785 -3,562,943 -9,595,656 -2,546,460 - -23,464,926 Actuarial result provision post-retirement

Disposals 525,276 10,067,408 319,643 - 1,998,139 - 12,910,466 medical benefit 747,402 -

Balance as at 31 December 2017 -20,048,005 -71,465,231 -20,270,480 -31,904,964 -8,989,482 - -152,678,162 Release of deferred tax liabilities -1,111,072 -

Balance as at 31 December 9,999,441 4,025,903

Net book value

As at 31 December 2016 36,659,448 7,312,560 7,462,538 16,561,678 132,107,774 51,090,653 13.020.897 The deferred tax asset pertains to a net loss carry over As no profit was realized at year-end, the release of As at 1 January 2017 36,659,448 51,090,653 7,312,560 13.020.897 7,462,538 16,561,678 132,107,774 from Surinaamse Brouwerij (company) and Stichting deferred tax liability and the actuarial result from Super Trans Atlantic. Management expects sufficient provision for post-retirement medical benefit is As at 31 December 2017 40,644,963 53,742,224 10,651,123 11.755.048 8,228,889 39,173,248 164,195,495 future taxable profit to enable the use of this net loss. respectively subtracted and added to this account.

SURINAAMSE BROUWERIJ N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 44 45

4. Inventories 8. Cash and cash equivalents

Inventories comprise of: 2017 2016 Cash and cash equivalents are comprised as follows: 2017 2016 SRD SRD SRD SRD

Raw materials 1,656,918 2,637,609 Cash in bank 58,874,346 35,060,769

Non-returnable packaging 7,220,505 9,222,771 Cash on hand 568,389 536,342

Work in progress 1,454,433 759,290 Total 59,442,735 35,597,111

Finished goods 19,438 80,355 Cash and cash equivalents are at free disposal of the company. Goods for resale 8,311,181 12,282,537

Other inventories and spare parts 5,443,818 5,437,311 9. Deferred tax liabilities due to deviating economic lives resulting from fiscally Total 24,106,293 30,419,873 The deferred tax liabilities relate to the items property, accelerated depreciation on specific production assets. plant & equipment and inventories. With regard For the fiscal valuation of specific inventory groups, the to property, plant & equipment, the difference is base stock method is applied. 5. Securities caused by, on the one hand, deviating principles of This pertains to investment in one share of N.V. valuation for tax purposes and on the other hand Hotelmaatschappij Torarica valued at acquisition cost. The market value as at 21 December 2017 amounts to SRD 80. The provision for deferred tax liabilities is compiled as follows: 2017 2016 SRD SRD

6. Income tax receivable Lower fiscal book value of tangible fixed assets 9,716,308 11,517,853 The income tax receivable pertains mainly to amounts Less: valuation difference of land for which, due to the recoverable from the tax authority for excess income permanent nature, no deferred tax liability applies -2,298,169 -2,298,169 tax payments for the fiscal years 2012, 2013 and 2016. Elimination intercompany profit in inventories of Parbo Centrale -3,007,548 -3,086,310 Lower fiscal valuation inventories due to base stock method of

valuation 3,968,908 4,106,316

7. Receivables Valuation difference: commercial versus fiscal principles 8,379,500 10,239,690

The specification is as follows: 2017 2016 Provision deferred tax liabilities, at income tax rate of 36% 3,016,620 3,686,288 SRD SRD

Trade and other receivables 8,531,719 3,942,433

Due from affiliated companies 494,818 234,475

Prepayments 18,030,010 4,783,132

Total 27,056,547 8,960,040

The increase in trade and other receivables is mainly Increase in advance payments to suppliers is mainly driven by an increase in consignment sales at year-end driven by prepayments to suppliers related to our and an import duty deposit for a de-palletizer pending capital expenditures project ‘new brew house’. import duty exemption for this item.

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 46 47

10. Provision for post-retirement medical The discount rate uncorrected for inflation is 15% 13. Other current liabilities benefit plan (2016: 7.0%). The annual increase of the yearly medical The specification is as follows: 2017 2016 The calculation is based on current actuarial expenses due to inflation is assumed to be 11.9% (2016: assumptions in Suriname at a discount rate (after 5.0%). SRD SRD correction for inflation) of 2.78% (2016: 1.9%). Due to affiliated companies 5,473,062 5,652,291

Trade payables 28,691,215 26,942,075 The movement of Projected Benefit Obligation (PBO) is as follows: 2017 2016 Bank overdraft - 36,101,523 SRD SRD Other payables and accrued liabilities 52,610,111 29,787,208 PBO value of the liabilities as at 1 January 5,699,161 6,234,668 Total 86,774,388 98,483,097 Withdrawals -572,572 -479,747

Current service costs (including interest) 1,203,839 516,744 Overdraft Past service costs - -506,671 SBNV is a participant in the Heineken Group’s current of both EUR and USD facility. SBNV has not issued Actuarial results 2,244,048 -65,833 account facility with BNP Paribas in Amsterdam with collaterals or guarantees for this facility. The balance as an allocated limit of 4.5 million Euro which consisted of 31 December consisted of: PBO value of the liabilities as at 31 December 8,574,476 5,699,161 2017 2016 SRD SRD 11. Long-term loans relating to the brewery “Sranan Biri”. The loan may not BNP in Euro - 33,721,747 Surinaamse Brouwerij N.V. has two (2) loan agreements be applied for any other purpose. BNP in USD with Heineken International. - 2,379,776 The details are as follows: The 2nd long term loan is a loan agreement between Total - 36,101,523 Surinaamse Brouwerij N.V. and Heineken International The 1st long term loan is a loan agreement between B.V. effective September 1, 2017 in the amount of Euro At year-end BNP credit facility stands at zero as SBNV Surinaamse Brouwerij N.V. and Heineken International 8 milion with an annual interest rate of 1.80%. The loan used part of the long term loan of Euro 8 milion to pay B.V. dated July 4, 2016 in the amount of Euro 4 milion is unsecured. Loan repayment date is September 1, off the outstanding balance. with an annual interest rate of 1.75%. The loan is 2022. Interest is payable from the effective date of the unsecured. Loan repayment date is July 5, 2021. Interest loan until the maturity date. is payable from the effective date of the loan until Other payables and accrued liabilities the maturity date. The sole purpose of the loan is for Interest paid over the book year 2017 for both loans Surinaamse Brouwerij N.V. to pay the purchase price amounts to SRD 962,786 (2016: SRD 276,756). The account can be specified as follows: 2017 2016 to Transatlantic Group of Companies for certain assets SRD SRD

Dividends payable 38,397,948 13,372,976

Personnel expenses payable (including expatriates) 5,722,444 5,825,277 12. Income tax payable Returnable deposit liabilities 4,682,407 2,184,400 This account pertains to income tax payable of Parbo Centrale for the financial year 2017. Wage tax and Old Age Premiums (AOV) payable 1,426,050 644,000

Excise duties and sales tax payable 677,822 3,609,170

Other and accrued liabilities 1,703,440 4,151,385

Total 52,610,111 29,787,208

SURINAAMSE BROUWERIJ N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 48 49

Notes to the consolidated income statement

14. Revenue

Revenue is comprised as follows: 2017 2016 SRD SRD

Domestic sales 347,476,713 280,346,575

Export sales 5,759,307 4,190,852

Discounts -85,421 -803,785

Total revenue 353,150,599 283,733,642

15. Raw materials, consumables and services 2017 2016 SRD SRD

Raw materials 15,813,320 12,262,673

Non-returnable packaging 23,128,124 18,166,761

Goods for resale - imported beer 84,513,164 61,088,655

Marketing and selling expenses 10,440,004 5,863,479

Inventory movements 1,037,809 -1,117,927

Repair and maintenance 6,972,717 3,440,595

Energy and water 6,698,223 4,609,991

Other expenses 26,150,974 21,225,505

Total 174,754,335 125,539,732

SURINAAMSE BROUWERIJ N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 50 51

Other expenses 16. Personnel expenses

Other expenses is composed of: 2017 2016 The personnel expenses can be specified as follows: 2017 2016 SRD SRD SRD SRD

HEINEKEN Group service fees 3,227,991 2,413,346 Salaries, holiday allowances and bonuses 18,381,990 12,875,246

Storage and demurrage expenses 3,086,118 2,909,766 Expatriate employee benefits 10,514,293 9,395,940

Distribution expenses 2,619,531 2,070,006 Other employee benefits and allowances 3,730,852 3,330,902

Third party services 2,388,512 2,035,122 Employer’s contribution to pension plan 2,604,379 2,600,540

Extra costs returnable packaging liability 2,052,266 2,244,000 Medical fees 1,034,878 744,503

HEINEKEN Group IT costs 1,772,556 3,281,396 Mutation provision for post-retirement medical benefit 402,740 -408,427

Production cleaning supplies and other materials 1,597,786 1,072,890 Other personnel costs 4,475,170 4,721,512

Automation and telecommunication 1,577,088 704,750 Total 41,144,302 33,260,216

Security fees 1,531,690 1,108,624

Bank charges 1,254,654 728,534 Number of employees employed 112 105

Insurance expenses 1,225,594 701,317

Other 3,817,188 1,955,754

Total 26,150,974 21,225,505

17. Depreciation and amortization 2017 2016 SRD SRD

Depreciation of tangible fixed assets (note 1) 23,464,926 15,096,371

Depreciation of intangible assets (note 1) 727,359 473,742

Total 24,192,285 15,570,113

18. Net finance expenses 2017 2016 SRD SRD

Interest income 102,100 63,007

Interest expense -1,045,049 -485,110

Interest post-retirement medical benefit plan -801,099 -418,500

Net foreign exchange rate (loss)/ gain -8,064,784 -32,604,919

Net finance expenses -9,808,832 -33,445,522

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 52 53

Company balance sheet as at 31 December Company income statement for the year (Before profit appropriation) ended 31 December

Assets 2017 2016 2017 2016

Note SRD SRD SRD SRD

Tangible fixed assets 143,970,813 110,672,461 Revenue 86,955,331 81,672,252

Intangible assets 8,970,631 9,697,990

Financial assets 19 98,660,626 77,112,769 Other income 427,289 10,630

Long-term receivable 63,700 127,400

Deferred tax asset 9,537,464 3,624,818 Raw materials, consumables and services -53,145,715 -40,770,418

Total non-current assets 261,203,234 201,235,438 Personnel expenses -27,324,607 -22,438,254

Depreciation and amortization -23,447,310 -15,263,360

Inventories 12,787,564 15,051,026 Total expenses -103,917,632 -78,472,032

Securities 1 1 Results from operating activities -16,535,012 3,210,850

Income tax receivables 6,485,427 6,070,900 Net financial expenses -899,197 -13,279,788

Receivables 18,307,822 5,027,495 Loss before income tax -17,434,210 -10,068,938

Cash and cash equivalents 38,695,905 21,178,145 Income tax benefit / (expense) 6,276,315 3,624,818

Total current assets 76,276,719 47,327,567 Loss -11,157,895 -6,444,120

Share in the net profit (after tax)

Total assets 337,479,953 248,563,005 Parbo Centrale and Stichting Super Trans Atlantic 77,515,094 55,038,481

Net profit 66,357,199 48,594,361

Equity and liabilities

Issued and paid-in capital 20 476,500 476,500

Retained earnings 21 62,446,519 64,447,007

Total equity 62,923,019 64,923,507

Deferred tax liabilities 3,016,620 3,686,288

Provision for post-retirement medical benefit plan 6,825,579 4,505,783

Long term incentive plan 1,120,604 670,963

Long-term loans 108,000,000 31,680,000

Total non-current liabilities 118,962,803 40,543,034

Other current liabilities 155,594,131 143,096,464

Total current liabilities 155,594,131 143,096,464

Total equity and liabilities 337,479,953 248,563,005

SURINAAMSE BROUWERIJ N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 54 55

19. Financial assets 21. Retained earnings The financial assets are related to the wholly owned sub- The movement in retained earnings are as follows: 2017 2016 sidiaries Parbo Centrale N.V., Stichting Super Trans At- lantic and Premium Beverage Suriname N.V. and can be SRD SRD specified as follows: Balance as at 1 January 64,447,007 55,273,858 Dividend distribution final prior year -34,951,253 -25,516,553 Premium Stichting Dividend distribution interim current year -26,969,900 -13,913,800 Parbo Beverage Super Centrale Suriname Trans Net profit after tax for the year 66,357,199 48,594,361 N.V. N.V. Atlantic Total Statutory dividend -23,847 -23,847 SRD SRD SRD SRD Actuarial results due to provision for post-retirement

Balance as at 1 January 2016 26,706,228 5 26,706,233 medical benefit plan -1,391,309 42,133 Dividend income received -26,706,059 - -26,706,059 Excess long term incentive plan 98,622 -9,145 100% profit during the year 55,751,521 - -731,040 55,038,481 Revaluation intercompany loan -5,120,00 - Actuarial gains and losses 15,815 - - 15,815 Balance as at 31 December 62,446,519 64,447,007 Initial investment in subsidiary - - 22,058,299 22,058,299 Balance as at 31 December 2016 55,767,505 5 21,345,259 77,112,769

Balance as at 1 January 2017 55,767,505 5 21,345,259 77,112,769 Dividend income received -55,751,521 - - -55,751,521 100% profit during the year 77,623,347 - -108,254 77,515,093 Actuarial gains and losses -215,715 - - -215,715 Balance as at 31 December 2017 77,423,616 5 21,237,005 98,660,626

Premium Beverage Suriname is a dormant company.

20. Share capital SRD 5 each and 44 preference shares at SRD 50 each. Of The authorized share capital amounts to SRD 2,382,500 this amount, the following shares were issued and paid and consist of 476,060 authorized ordinary shares of in full at the end of the reporting year:

2017 2016 SRD SRD 94.860 ordinary shares, each with a nominal value of SRD 5 474,300 474,300 44 preferential shares, each with a nominal value of SRD 50 2,200 2,200 Total 476,500 476,500

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 56 57

Other information

Shares Statutory stipulations appropriation of profit Proposed profit appropriation for 2017 In total The preference shares are registered by name and the A statutory dividend is initially distributed out of the ordinary shares are bearer shares and if desired, by net profit at 6% of the paid-in preference shares, and SRD name. subsequently, at 5% of the paid-in ordinary shares. The Net profit for 2017 66,357,199 final dividend distribution of the remaining net profit, Less: balance of accumulated actuarial results -1,086,168 Authority rights meeting of priority shareholders after the statutory dividend, is at the disposal of the The Directors of the company are appointed by the General Meeting of Shareholders. If, according to the Less: revaluation intercompany loan -5,120,000 General Meeting of Shareholders based on a binding adopted profit and loss account in any year a loss was Profit for 2017 available 60,151,031 nomination of two persons for each vacancy where suffered, which is not covered by a reserve, no profit Less: statutory profit appropriation: by the nomination is established by the meeting of distribution shall take place in the subsequent years, as preference shareholders. This procedure also applies at long as said loss has not been cleared. On preference shares -132 the appointment of the Supervisory Board members. On ordinary shares -23,715 Available to the General Meeting of Shareholders 60,127,184

The management team proposes the following distribution of earnings 2017 to be availa-

ble to the Shareholders as follows: In total SRD Cash dividend of SRD 6,307 on 44 preference shares with a nominal value of SRD 50 277,508

Distribution of earnings 2016 Cash dividend of SRD 630.75 on 94,860 ordinary shares with a nominal value of SRD 5 59,832,945 The General Meeting of Shareholders adopted the financial Addition to retained earnings 16,731 statements 2016 on June 21, 2017, and has approved below Total 60,127,184 profit distribution of 2016, as follows:

Per share SRD Except for the 2017 interim dividend, the above proposed distribution of earnings is not processed in Dividend on preference shares (44 shares with nominal value of SRD 50) 5,127 225,588 the financial statements 2017. Dividend on ordinary shares (94,860 shares with nominal value of SRD 5) 512,75 48,639,465 Total 48,865,053 Statutory dividend (preference: SRD 132; ordinary: SRD 23,715) 23,847 Addition to retained earnings 10,603 Net profit 2016 48,899,503

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 58 59

Independent auditor’s report

To the General Meeting of Shareholders of Surinaamse Brouwerij N.V. Paramaribo

A. Report on the audit of the financial statements 2017 (VGBA). included in the annual report We believe the audit evidence we have obtained is Our opinion sufficient and appropriate to provide a basis for our We have audited the financial statements 2017 included opinion. on pages 32 to 55 of Surinaamse Brouwerij N.V., based in Paramaribo. B. Report on the other information included in the annual report IIn our opinion, the accompanying financial statements In addition to the financial statements and our auditor’s give a true and fair view of the financial position of report thereon, the annual report contains other Surinaamse Brouwerij N.V. as at 31 December 2017, and information that consists of: of its result and the cashflows for 2017 in accordance • Management of the company; Accountants’ report with generally accepted accounting principles. • other information.

Independent auditor’s report The financial statements comprise: Based on the following procedures performed, we 1. The consolidated and company balance sheet as at conclude that the other information is consistent with 31 December 2017; the financial statements and does not contain material 2. The following statements for 2017: the consolidated misstatements. and company income statement, the consolidated statement of changes in equity and the We have read the other information. Based on our consolidated cashflow statement; knowledge and understanding obtained through our 3. The notes comprising a summary of the accounting audit of the financial statements or otherwise, we have policies and other explanatory information. considered whether the other information contains material misstatements. With our work, we have Basis for our opinion complied with the requirements of audit standard 720. We conducted our audit in accordance with This work is not as thorough as our audit work. the generally accepted auditing standards. Our responsibilities under those standards are further Management is responsible for preparing the other described in the ‘Our responsibilities for the audit of the information, including the report of the management financial statements’ section of our report. and the other information, in accordance with generally accepted principles for financial reporting. We are independent of Surinaamse Brouwerij N.V. in accordance with the Verordening inzake de C. Description of responsibilities regarding the onafhankelijkheid van accountants bij assurance- financial statements opdrachten (ViO) and other relevant independence Responsibilities of management and supervisory regulations to the assignment and we have fulfilled our board for the financial statements other ethical responsibilities in accordance with these Management is responsible for the preparation and fair requirements. Furthermore, we have complied with the presentation of the financial statements in accordance Verordening gedrags- en beroepsregels accountants with generally accepted principles for financial

SURINAAMSE BROUWERIJ N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 60 61 reporting. Furthermore, the management is responsible standards, ethical requirements and independence Because we are ultimately responsible for the opinion, for such internal control as the management requirements. Our audit included among others: we are also responsible for directing, supervising determines is necessary to enable the preparation of and performing the group audit. In this respect we the financial statements that are free from material • identifying and assessing the risks of material have determined the nature and extent of the audit misstatement, whether due to fraud or error. misstatement of the financial statements, procedures to be carried out for group entities. Decisive whether due to fraud or error, designing and were the size and/or the risk profile of the group entities As part of the preparation of the financial statements, performing audit procedures responsive to those or operations. On this basis, we selected group entities the management is responsible for assessing the risks, and obtaining audit evidence that is sufficient for which an audit or review had to be carried out on the company’s ability to continue as a going concern. Based and appropriate to provide a basis for our opinion. complete set of financial information or specific items. on the financial reporting framework mentioned, The risk of not detecting a material misstatement management should prepare the financial statements resulting from fraud is higher than for one resulting We communicate with those charged with governance using the going concern basis of accounting unless from error, as fraud may involve collusion, forgery, regarding, among other matters, the planned scope management either intends to liquidate the company intentional omissions, misrepresentations, or the and timing of the audit and significant audit findings, or to cease operations, or has no realistic alternative override of internal control; including any significant findings in internal control that but to do so. • obtaining an understanding of internal control we identify during our audit. relevant to the audit in order to design audit Management should disclose events and circumstances procedures that are appropriate in the Paramaribo, 14 May 2018 that may cast significant doubt on the company’s circumstances, but not for the purpose ability to continue as a going concern in the financial of expressing an opinion on the effectiveness of the Lutchman & Co statements. company’s internal control; • evaluating the appropriateness of accounting On their behalf, The Supervisory Board is responsible for overseeing the policies used and the reasonableness of accounting signed by Drs. M.R.A. Lutchman RA company’s process of financial reporting. estimates and related disclosures made by management; Our responsibilities for the audit of the financial • concluding on the appropriateness of statements management’s use of the going concern basis Our objective is to plan and perform the audit of accounting, and based on the audit evidence engagement in a manner that allows us to obtain obtained, whether a material uncertainty exists sufficient and appropriate audit evidence for our related to events or conditions that may cast opinion. significant doubt on the company’s ability to continue as a going concern. If we conclude Our audit has been performed with a high, but not that a material uncertainty exists, we are required absolute, level of assurance, which means we may not to draw attention in our auditor’s report to the detect all material errors and fraud during our audit. related disclosures in the financial statements or, if such disclosures are inadequate, to modify Misstatements can arise from fraud or error and are our opinion. Our conclusions are based on the considered material if, individually or in the aggregate, audit evidence obtained up to the date of our they could reasonably be expected to influence the auditor’s report. However, future events or economic decisions of users taken on the basis of these conditions may cause a company to cease to financial statements. The materiality affects the nature, continue as a going concern; timing and extent of our audit procedures and the • evaluating the overall presentation, structure evaluation of the effect of identified misstatements on and content of the financial statements, including our opinion. the disclosures; and • evaluating whether the financial statements We have exercise professional judgement and have represent the underlying transactions and events maintained professional skepticism throughout the in a manner that achieves fair presentation. audit, in accordance with generally accepted auditing

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 62 63

Reference Information

This report is a publication of Surinaamse Brouwerij N.V. Brouwerijweg 1 PO BOX 1854 Paramaribo, Suriname

Telephone +597 402255 Fax +597 404093 www.parbobier.com

The full English annual report can be downloaded as a PDF from www.surinaamsebrouwerij.com

Editor in chief Egbert H. Weggemans

Final editing Birdy Communicatie BV, Nederland

Production and editing Margarita van der Zwart Lisa Thijm

Graphic design and electronic publication Linda Hofland, Birdy Communicatie BV, Nederland

Photography Helio Phoeli B-Creative Own collection Fabian Vas Experience (foto cover)

Printing Multiforms N.V., Paramaribo, Suriname

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 2017 2017 ANNUAL ANNUAL REPORT REPORT 64

2017 ANNUAL REPORT

SURINAAMSE BROUWERIJ N.V. 2017 ANNUAL REPORT