2018 ANNUAL REPORT 3

Contents

Foreword from the Managing Director 4 Financial results 6 Five year consolidated key figures 8 Developments in the Finance department 10 Optimization of communication in Supply Chain 12 More collaboration in and with commerce team 14 The people behind the products 16 Management team 18 Supervisory Board 19 Report from the Supervisory Board 20 Brewing a better Suriname 22 Sustainable development 24 Sustainability report 27 Voluntary work for the elderly 28

2018 financial statements 31 Consolidated balance sheet at 31 December 32 Consolidated income statement 33 A proud history Consolidated summary of changes in equity 34 Consolidated cash flow statement 35 The roots of Surinaamse Brouwerij N.V. lie in the Dutch province of Zeeland, where brothers Piet Notes to the consolidated financial statements 36 and Arthur Dumoleyn made the decision in around 1950 to continue their beer-brewing activities Notes to the consolidated balance sheet 42 in Suriname. Notes to the consolidated income statement 49 Company balance sheet at 31 December 52 Suriname, which was a Dutch colony Hence Surinaamse Brouwerij was Surinaamse Brouwerij brews, Company income statement 53 at the time, did not have its own one of the first breweries in South produces, sells and distributes brewery. The brewery was officially and North America to achieve both PARBO Bier, PARBO Chiller, PARBO Other information opened in October 1955 by His the ISO and the HACCP certificate. Radler 2.0% and PARBO Radler Other information 56 Royal Highness Prince Bernhard Nowadays Surinaamse Brouwerij 0.0% for the Surinamese market. Independent auditor’s report 58 (later the Queen’s Consort). At the strives to produce and sell beer that Surinaamse Brouwerij also exports Credits 63 end of December 1955 the company meets international standards. PARBO Bier, PARBO Chiller and produced the first PARBO BIER. PARBO Radler 2.0% to a selection One shareholder right from the start The strategy is aimed at achieving of countries. The company imports was the Amstel brewery, which was profitable and sustainable growth in and distributes the products acquired by HEINEKEN in 1968. order to strengthen the position of Heineken®, Desperados, Sol, the business. Surinaamse Brouwerij Vitamalt and Royal Club in Suriname The Surinamese beer was of is thereby seeking an optimum through its subsidiary. excellent quality right from the return for the shareholders, start, as is evidenced by the award consistent satisfaction amongst of the Prix d’Excellence in 1958 customers and consumers, during the World Beer Fair in Ghent, optimum welfare for employees Belgium. Quality has always played and socially responsible business an important role in the company’s practices and engagement. strategy, and still does to this day.

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Partly in view of the economic Another project is the rebuilding projects took place. Foreword from the Managing Director situation we had to review our aforementioned introduction of the The old brewhouse has now been strategy and identify where HEINEKEN Leadership Expectations. completely decommissioned, and Going from good to GREAT with Surinaamse Brouwerij. For Surinaamse Brouwerij, 2018 was improvement was necessary and The expansion of our Route to after fine-tuning of the new brewing particularly focused on introducing the new strategy ‘From good to GREAT’ and the successful possible. The entire Leadership Market project (construction of equipment the beer from the new implementation of this concept across the company at all levels of our organization. Team therefore developed a new waterside sales outlets in the brewhouse tastes excellent! The strategy forms the basis for the development and successful execution of various projects, mission and vision, to which a interior) should also be included in as a result of which we have been able to achieve good results in the ongoing challenging strategy called ‘From good to GREAT’ this list of successful projects. We 2019 will particularly macroeconomic climate. was then linked which sets out how built a number of very attractive be characterized by the we will realize the vision. additional Parbo sales outlets in implementation of the new BASE In summary, the strategy is based 2018, including at Atjoni, Nickerie operational business system, We are particularly proud of the In terms of the commercial results, be achieved. In terms of volume on four pillars: engage and develop and Zanderij airport. a standard way of working for fact that 2018 was an accident-free it can be stated that Surinaamse we sold 1.1% less than last year, people, deliver top line growth, We also launched a substantial HEINEKEN which will be the same year. Although an accident-free Brouwerij achieved a solid partly as a result of the euro crisis, drive E2E performance and finally number of new products this year, around the globe. year is always something to be performance. Revenue grew again the continuing poor economy and “brewing” a better Suriname. including Radler Ginger and Cherry, The implementation of the proud of, it can be considered a compared to the preceding year, the long rainy season. It is worth Radler 0.0% Cherry and Lime, the ‘From good to GREAT’ strategy particularly impressive achievement although we unfortunately did mentioning the extra hard work The implementation of the new Parbo 33cl and 50cl can six pack and will continue with new projects, this year since we had a higher not achieve the minimum targets performed by all the departments strategy also introduced a new way Royal Club soft drinks. the further segmentation of our than usual number of construction in this regard despite our joint in the last three months of the year of working. The focus was thereby All this was accompanied by various customers with specific sales and rebuilding projects. This meant efforts. One plus point is that our which enabled us to make up a lot on modern leadership: a different promotional and marketing events, terms for each channel, and the that the risk of accidents was performance in terms of operational of the shortfall. way of managing whereby staff with the highlight being that innovation and introduction of considerably higher than in previous profit was better, and we achieved on the shopfloor are expected to - in my opinion - we had the best new products to grow our business years. Despite this, our constant our target in this regard. Our cash take more responsibility whilst also stand at the annual trade fair. We further. focus on the importance of safety flow finished the year between the being empowered to make certain successfully completed two ISO led to this good result. target and the maximum result to decisions themselves. All this is audits, and also underwent the We need each other to have a based on HEINEKEN’s Leadership HEINEKEN Global Supply Chain successful year and achieve our Expectations - the behavior we Audit after 10 years, which we targets, and I trust that we will expect from our managers. passed successfully. realize this by helping one another to be successful. We have completed many Another successful project in 2018 successful projects on the basis was the introduction of the Refuel of the four pillars of the strategy. for Growth cost-saving program, E.H. Weggemans In the context of the new way which was intended to provide of working we have encouraged insight into our expenditure and all the brewery’s employees to create a better negotiating position lead a project or activity or to vis-a-vis suppliers, amongst other participate in a project as part of a things. This led to a significant cost Managing Director multidisciplinary project team. saving. Paramaribo, 14 May 2019 One of these projects is the introduction of a KPI house: The organization also again a system whereby the key underwent various changes in performance indicators for 2018, including the merger of the the various departments are Sales and Marketing departments transparently harmonized, so that into one Commerce department. we no longer have any conflicting We also built a new brewhouse targets between departments. and a number of new warehouses, and a large number of other

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Financial results

pension costs by 31%, agency costs R by 85% and a reduction in the cost

Volume growth Revenue growth Growth of operating Growth of net result of expats by 13%, partly as a result result of a change in the organizational -1.1% 9.3% 16.2% 24.3% structure of the Commerce +16.2% department. +24.3% 131,8

113,4

The consolidated depreciation fell

2017 2018 2017 2018 by 5%, which is mainly the result of the accelerated depreciation resulting from reducing the lifespan of the 1 liter returnable bottle from 7 to 3 years in 2017. Real Gross National Product The total cost of raw materials, In line with our investment increased by 1.7 percent in 2017, consumables and services has risen program we spent SRD 70 million whilst 2018 saw a growth of by SRD 8.5 million (+5%), mainly as on - amongst other things - safer 2 percent. a result of an increase in the cost of operation in the production The reduction in the financial raw materials, packaging materials environment, expanding our expenses is influenced by the Although the USD/SRD exchange and imported products by warehouses, the installation of reduction in the exchange rate rate was stable - as in 2017 - at SRD 7.5 million and the other a new brewhouse which was results by 96% combined with a SRD 7.52, the average annual expenses by SRD 2.4 million. completed in November 2018, rise in the interest costs (+63%) as a exchange rate of the EUR compared We were able to partly mitigate replacing part of the machinery result of a EUR 8 million loan taken to 2017 rose by 4.2% from the impact of the rise in the EUR and vehicle fleet, packaging and out in September 2017 for the new SRD 8.524 to SRD 8.882. exchange rate thanks to our sub-zero refrigerators. As well as brewhouse. Average annual inflation fell from cost-saving program. setting up the new brewhouse, we Partly as a result of this, we were 22% in 2017 to 7% in 2018. also started building offices for able to end the year with 24% The increase in the other the Supply Chain department. The growth in our consolidated net Surinaamse Brouwerij again expenses is driven by anticipated completion date is June profit. enjoyed a successful year in 2018. - amongst other things - an 2019. The consolidated net profit rose by increase in the total third party The growth in our revenues 24.3%, which was due to a number services, information and combined with the restriction on the of factors. technology costs, and the increase rising costs resulted in an increase on the deposit on bottles by 100%. in the operating result by 16.2%. Consolidated revenue rose by 9.3%, partly as a result of the increase in The cost of energy and water rose Financial and operational highlights the selling price implemented in by 14% as a result of the price Revenue Operating result Net result 2018, a shift in the sales mix, and increases on petrol (+12%), in SRD/ M in SRD/ M in SRD/ M the new products - Radler 0.0% and diesel (+21%) and heavy oil (+24%). 2018 386 2018 131 2018 82 2017 353 2017 113 2017 66 Royal Club - that were introduced. Personnel costs rose by 17%. 2016 284 2016 109 2016 49 2015 190 2015 117 2015 42 This is partly explained by an 2014 220 2014 67 2014 43 average increase in salaries by 22%,

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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 stated otherwise). The year-end exchange rate has thereby been adopted for balance sheet accounts, and the average exchange rate is used for the other figures.

In euros 2018 2017 2016 2015 2014

Balance sheet total 36,097,773 33,377,122 28,681,143 28,522,466 32,148,521

Revenue 43,474,543 41,432,105 40,713,682 49,855,818 43,709,733

Net profit 9,283,003 7,785,116 6,972,932 10,977,909 9,537,722

Cash dividend 9,496,792 6,678,939 6,172,841 9,177,037 10,417,598

Pay-out ratio as % of net profit 99% 91% 101% 100% 100%

Cash dividend per ordinary SRD 5.00 share 110.11 70.41 65.07 96.74 109.82

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

Net profit per SRD 5.00 share 97.86 82.07 94,860 115.73 100.55

Share price at year-end 315.81 316.77 73.51 583.88 649.51

Share price/earnings per share 3.2 3.9 387.43 5.0 6.5

5.3

EUR exchange rate (SRD/EUR)

Year-end 8.600 9.000 4.590 4.080

Average 8.882 8.524 7.920 3.818 4.460

6.969

USD exchange rate (SRD/USD)

Year-end 7.530 7.520 7.500 4.200 3.350

Average 7.529 7.564 6.311 3.446 3.350

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Developments in the Finance department

When the macroeconomic situation is challenging, this always has an impact on an organization’s finance department. This was also the case at Surinaamse Brouwerij in 2018. However, the Finance department saw the opportunity to take advantage of these developments, and achieved a number of good successes and results.

The Finance department improved internal planning, various contributed to a completely product optimizations within accident-free year by complying our production process, strong with the organization’s strict procurement negotiations at both safety policy. Under this policy the local and international level, and department’s company emergency eliminating expenses by optimizing workers took part in a refresher our logistics. Attention was also course, amongst other things. paid to the payment process. Effective changes were made to The new mission, vision and this so that late payments by the The expectation for the coming The implementation of BASE will strategy particularly provided the organization are now rare. year is that the introduction of the also enable the department to Finance department with clarity new BASE ERP system will make implement more control measures, about what the organization stands The department also provided clear heavy demands of the department since the control measures are for. The four pillars of the strategy insight into the margins on the because of the time and energy embedded in the system itself so and the associated projects for various products and shared these involved in its implementation. that no checks need to be carried which employees could sign up with the internal stakeholders such However, on the other hand the out outside the system, allowing ensured that the strategy was not as the Sales Team. The advantage expectation is that the introduction more efficient working. just applied at senior management of this is that it is now clear to them of the system will offer many level, but that employees in all which products to focus on when benefits, particularly for this All in all, ensuring that the Finance areas and layers of the organization promoting the sale of products in department. department functions optimally felt engaged. The Leadership order to achieve the targets. is a process of continuous Team thereby expects people to Automating a large proportion of improvement. Although the show ownership, communicate Finally, the efficiency of the the processes will mean that much department is already functioning transparently and remain well- Controlling Team in particular less time will be spent on collecting well, the implementation of the new informed about the issues within was increased substantially information. This time gain can strategy and the introduction of the department. by reassigning a number of then be spent on analyzing data. BASE are a welcome contribution to operational tasks back to internal The expectation and intention is our path ‘From good to GREAT’. One of the most important stakeholders. By providing that the Finance department will successes in the past year was operational departments with a thereby have more insight into the achieving a significant saving of clear explanation of the working various operational departments. around EUR 800,000 over the whole and function of certain modules By making these findings available, year, approximately EUR 100,000 they can now complete these the operational departments can be more than the preceding year. The modules themselves, reducing the better supported by enabling them savings are the result of greatly Finance department’s workload. to make fact-based decisions.

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including the construction of a new Optimization of communication brewhouse. This has doubled the capacity of our brewery and enables in Supply Chain us to deal better with the larger number of different products that As the department responsible for managing the entire chain, we now offer. the Supply Chain department has always been an important department within the organization. The optional functioning This year the department of the department particularly requires good communication, underwent no fewer than three both internally and with other departments, and seamless audits. Two of these were ISO audits planning. This was again the case last year. However, various which we completed successfully, developments including the implementation of the new showing that we comply with the strategy, the construction of a new brewhouse and the latest ISO standards which apply execution of various audits required extra attention and effort worldwide. The HEINEKEN audit from this department. was also completed positively at Surinaamse Brouwerij for the first time in 10 years. This is an audit Surinaamse Brouwerij had a Partly because of the physical that is carried out worldwide at completely accident-free year distance, communications were HEINEKEN organizations, and covers in 2018. This was an excellent not always as smooth as they the safety and efficiency of various achievement which was not the might be. Yet the nature of the processes amongst other things. result of pure good luck, but of the Supply Chain department’s many prevailing safety culture whereby different activities means that The impact on our department of we proactively identify risks and communication and harmonizing the increase in the deposit was that take preventative mitigating steps. activities with other departments we could produce more efficiently. The fact that we managed to remain is essential. The decision to update The increase meant that more than entirely accident-free this year is the mission, vision and strategy 350,000 bottles were returned, particularly impressive since there was therefore particularly welcome. which we particularly needed was rebuilding and construction This gave an impetus for jointly during the fourth quarter. All the work going on throughout the identifying the business objectives various projects and improved year. This involved the use of many and closer collaboration with the communications lead to good external contractors, many of whom rest of the organization. Since results, but more importantly to were not accustomed to our high this department with around 85 greater job satisfaction. safety standards. employees accounts for almost half the workforce, effective Executing the many different the longer term, we will be able to focused preparations for the future. Continuous communication and communication is and remains projects simultaneously was benefit more from the knowledge We therefore view 2018 as the year emphasizing the importance of essential in order to carry out the certainly a challenge and made and experience of the parent in which we have sown, and expect safety in the workplace ultimately change process and achieve the significant demands of our organization HEINEKEN and will be to be able to reap the harvest in resulted in an increased focus on desired changes. staff in terms of adaptability able to communicate more easily 2019. safety amongst them as well. and willingness to change. The with other breweries around the Although most departments A number of change projects have forthcoming introduction of world. of Surinaamse Brouwerij are been developed on the basis of BASE requires us to adapt our provisionally based on Ringweg, the the new strategy with the aim of organization to this new system; Over the past year we have invested Supply Chain department is still on achieving the business objectives. processes will be redesigned so a great deal in - amongst other the brewery site. Alongside these projects the Supply they fit within the system, and this things - an increased sense of Chain department has also carried exercise will undoubtedly result ownership amongst our employees, out quite a few other projects, in greatly improved efficiency. In more effective communication and

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More collaboration in and with commerce team

Over the past year the focus for the Commerce Department has been on improved collaboration, both internally within the department itself and cross-functionally with other departments within the organization. This had a noticeably positive impact on the performance of the entire department, which has only existed in its current form for a relatively short time.

Under the HEINEKEN strategy it has the annual Climate Survey, which Over the past year we also carried targets. It was not easy to achieve possibilities for our customers. become customary over the past reflects the working climate, which out the packaging project, whereby the target sales volumes, partly The expectation is that with our few years to combine the Marketing, shows - amongst other things - that the internal streams were first because of the price increase improvement plan, prepared on Sales and Trade Marketing our staff are particularly satisfied brought under control followed by in February, the euro crisis, the the basis of the findings from the departments. Surinaamse Brouwerij with various aspects of their work an increase in the deposit which average diminished purchasing customer satisfaction study, we also merged these departments and working conditions, including ensured in the fourth quarter that power of the average Surinamese will be able to offer even better over a year ago. remuneration, company objectives there was sufficient incentive to individual and the long rainy season. customer service and surprise our and working atmosphere. return the used bottles. In terms consumers with new products that The reason for this merger is that of innovation and new products, This year our department also made will certainly be to their taste. the activities of these departments One example of a successful mid-2018 saw the launch of Radler its contribution to achieving an are so closely related that it is cross-functional project was 0.0%: alcohol-free beer in lime and accident-free year. Because many logical to optimize the relationship the customer satisfaction study cherry flavors. We also launched of our staff are out on the road between the departments and conducted in September. Around Royal Club, a premium soft drink every day, our focus is particularly combine them into one department. 25% of the customers were range from HEINEKEN available on road safety. In this regard we thereby interviewed using a survey in the flavors Tonic, Soda, Ginger can note that all employees have The process of formulating a new which was completely compliant Ale, Bitter Lemon and Fresh Citrus. now attended a Defensive Driving strategy in itself resulted in an with HEINEKEN’s international Following a successful promotional course, and all employees’ vehicles increased sense of engagement standards. This study followed up campaign the launch of these new are equipped with GPS. This latter amongst the employees who are on the knowledge and experience products was accompanied by the measure particularly ensures that part of the Leadership Team in obtained during a customer support creation of the best stands at the they drive much more carefully. particular, because they were given workshop held in June of last year. annual trade fair. the opportunity to provide their In the context of Building on our efforts over the input and therefore help shape the ‘From good to GREAT’ we realized As part of the Route to Market we past year, our expectations for the organization’s course. that if you hold a leading market opened new sales outlets in Atjoni, coming year are that we will be share you sometimes lose sight Nickerie and at Zanderij at the start able to work even more efficiently The clarity of the organizational of issues that are important to of 2018. So far sales at these new and can respond better to our objectives and the transparency in customers. With the survey, we are outlets can be considered excellent. customers’ needs. The introduction how these could be achieved had a seeking to keep our finger firmly on of BASE and the associated IT stimulating effect on everyone. the pulse and position ourselves Although we achieved a number of systems will make it possible to As a result of all this, we achieved to respond to our customers’ successes over the past year, we structure and operate our processes a number of great results in 2018. wishes much more effectively after certainly also encountered some more efficiently and more simply. First there is the excellent score analyzing the results. challenges. The greatest of these Our ordering system will also be which our department achieved in was the struggle to achieve our modernized, which offers more

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sessions have been arranged in HEINEKEN Leadership Expectations The people behind the products E this context about issues including program. This is aimed at managers E I bullying, sexual harassment and in the broadest sense of the word The HR department has also seen clear benefits from the development of the new mission, vision 86% whistleblowing. with the aim of developing the and strategy. Across the organization this has particularly provided clarity; the staff in the various competencies of leaders as much as departments were all clearly aware of the goal that they wanted to achieve together and how As per usual, 2018 also saw possible. they could contribute to this, both as a department and as an individual. attention paid to encouraging a healthy lifestyle amongst our We are proud that our employees employees. We organized various are happy in their work, and we Our score events including a number of walks will therefore work hard over the and a bike tour to Domburg which coming year to keep them happy, employees progressed and were was a great success. No fewer than to develop their capabilities further appointed to new positions in 2018. 50 colleagues were encouraged to and to offer them every possible participate in this bike trip, which opportunity to progress. After all, The past year was an accident-free took place under police supervision only with an optimally developed year. We achieved this by on rented bikes. workforce can we achieve optimum - amongst other things - strictly results. implementing our safety policy and In 2019 there is expected to ensuring the continuous provision be a lot of focus on BASE; the of the necessary training to the implementation of and adaptation entire organization and timely to this new system will make a lot of acquisition of relevant certifications. demands of staff. The introduction We are now known both internally of BASE will lead - amongst other and externally for our proactive things - to a substantive change safety culture. in a number of roles, and the HR One of the HR department’s most interactive way through workshop In 2018 we also introduced the department will offer as much important tasks is to ensure and sessions. HEINEKEN job evaluation model As well as safeguarding physical support as possible by providing maintain a motivated and healthy for management and middle safety, we have also taken steps relevant training. LEAP (Leadership workforce that is furnished with The program is based on five management. This was done to aimed at a more general feeling Expectations for Advancing People the correct tools and the required concepts: connect, shape, develop, bring us into line with the model of safety within and outside of Managers) will also be rolled out facilitating environment in order deliver & role model. In summary, for the HEINEKEN organizational the workplace. Various awareness next year as a follow-up to the to realize the strategy. With this it is important to make a real structure, to provide increased concept in mind we have this year connection with the people in the transparency in the relationship again paid attention to ensuring business and to shape the future between the various roles, and more optimum development of by thinking big and adopting a clear to give better insight into the our people, encouraging a healthy strategy. Within this it is important possibilities in terms of career lifestyle and safeguarding safe to develop and motivate employees development for our employees. working conditions and a safe and with the aim of allowing them to pleasant working environment in grow. This enables them to work The extremely gratifying score of various ways. on achieving ambitious goals and 86% on our employee satisfaction take ownership of results. The role survey shows that our employees The HEINEKEN Leadership model aspect refers to the fact still find it very attractive to work Expectations program was that managers must lead others by for us. One of the reasons for this introduced partly to support setting a good example and being is the attention we pay to personal the new strategy. The aim of a role model for the HEINEKEN development and internal career this program was to introduce behavior. progression for people within our employees to the behavior organization. No fewer than 12 expected from managers in an

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Management team Supervisory Board

Ed Weggemans | Managing Director Martin Loor

General Manager at Surinaamse Brouwerij N.V. since January 2016. Joined HEINEKEN in 1990. Retired from De Surinaamsche Bank N.V. in 2017, where he had worked since 1998, most Occupied sales roles at HEINEKEN Netherlands and then commercial roles at HEINEKEN Export recently in the role of Financial Director. Prior to his career with DSB he held management Group in Eastern Europe and Asia. Has occupied management positions in recent years in Dubai positions with companies including Volkskredietbank in Suriname and Société des Bois (Commercial Manager), Nigeria (Commercial Manager), the Netherlands (General Manager Tropicaux in French Guyana. His activities now involve consultancy on financial and Europe Export & Global Duty Free). As General Manager he has overall responsibility for all economic matters. areas: Finance, Human Resources, Corporate Relations, Supply Chain, Marketing, Sales and IT Corporate.

Friso Lefeber | Supply Chain Manager Hemmo Parson

Supply Chain Manager at Surinaamse Brouwerij N.V. since June 2017. Joined HEINEKEN in Company lawyer at HEINEKEN head office in Amsterdam since 2003 with overall legal 2003, where he started as a Management Trainee and then worked as a Procurement Analyst, responsibility for the HEINEKEN operations in the Americas region. Also a member of Logistics Supervisor and Maintenance Manager. In 2014 he and his family moved to Haiti, the HEINEKEN Americas Leadership Team. Director of Carib Development Company Ltd where he worked as Logistics and Production Manager at the local HEINEKEN brewery. (Trinidad), Desnoes & Geddes Ltd. (Jamaica) and Compania Cervecerias UNIDAS SA (CCU). Prior to his career with HEINEKEN he worked as an attorney with Allen & Overy LLP and Loef Claeys Verbeke in Amsterdam.

Zohrina Ramdjan Habieb | Finance Manager Albert Ramdin

Finance Manager at Surinaamse Brouwerij N.V. since May 2008. Joined Surinaamse Brouwerij Following his return to Suriname in 1993, Albert Ramdin served in various roles within the N.V. in 2002 as Internal Financial Controller. Before joining HEINEKEN she worked as an associate civil service, after which he worked as Marketing Manager with British American Tobacco auditor with Ernst & Young Accountants. Suriname. Between 1997 and 2015 he held the following positions, amongst others: Ambassador for Suriname with the Organization 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 Fayzal Abdoelrazak | Commercial Manager the role of Senior Director External Relations. He also holds a host of advisory positions in regional and international organizations. 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 a Business Developer in both the Netherlands and Suriname. Held various management positions with listed companies in the Netherlands (USG People, KPN, TPG).

Linda van Donk | Human Resource Manager

Human Resource Manager at Surinaamse Brouwerij N.V. since October 2015. Joined HEINEKEN International in 2011, and has held various HR positions there. Before joining HEINEKEN she worked at organizational consultancy Hay Group, where she carried out HR projects for various companies.

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Report from the Supervisory Board

In accordance with the provisions of article 17 paragraph 3 of the articles of association we are submitting the financial statements prepared by Management for approval by the General Meeting of Shareholders. The financial statements have been audited by Lutchman & Co. N.V. We recommend the approval of these financial statements together with the audit report from Lutchman & Co. N.V.

The consolidated net profit for With our approval the interim Meetings also implements corporate social the financial year 2018, including dividend of SRD 420 per SRD 5 The Supervisory Board convened on responsibility. the actuarial results arising from share and SRD 4,200 per SRD 50 18 April, 20 June and 16 November the provision for post-retirement preference share was made payable 2018. Various topics were discussed Acknowledgments medical benefits, is SRD 81,764,439. in November 2018. Taking account of at these meetings, including the We would like to express our Of this, a sum of SRD 3.00 per this, if our proposal is approved the strategy, the operating results, gratitude for the efforts of preference share with a nominal final dividend will be set at communication with the authorities Management and the employees; value of SRD 50 will accrue to the SRD 437.25 per SRD 5 ordinary concerning tax measures relating to they have again worked actively in preference shareholders, and a sum share and SRD 4,380 per SRD 50 the production of beer, dividend, the 2018 to cope with the challenging of SRD 0.25 per ordinary share with preference share. These sums financial position, risk management, market conditions so that the a nominal value of SRD 5 will accrue include the aforementioned corporate social responsibility and business could again end the year on to the ordinary shareholders in statutory dividend, and will be auditing of the business. Attention a positive note. accordance with article 18 paragraph made payable with deduction of the was also paid to changing market 2 of the articles of association. dividend tax due. conditions and how to respond to Supervisory Board These sums are 6% and 5% these. The board members actively respectively of the issued and paid-in Approval of the financial statements participated in the discussions and Mr. M. Loor (Chair) capital per share. The preference serves to discharge Management of the decision-making. and ordinary shareholders thereby responsibility for its management Mr. H. Parson have a statutory entitlement to a and the Supervisory Board of In addition to the meetings of the payment of SRD 132 and responsibility for its supervision. Board, the Supervisory Board also Mr. A. Ramdin SRD 23,715 respectively, after which had discussions with Management a sum of SRD 81,740,592 will be at Supervisory Board in preparation for meetings of the Paramaribo, 14 May 2019 the disposal of the General Meeting According to the retirement roster Board and about specific issues of Shareholders. drawn up by the Supervisory Board affecting the business, amongst as stipulated in article 15 paragraph other things. The board’s proposal is to pay a 2 of the articles of association it dividend from this sum of was Mr. L. Naarden’s turn to retire. Safety and Environment SRD 857 per SRD 5 ordinary He did not stand for re-election, The Supervisory Board is satisfied share and SRD 8,577 per SRD 50 and retired at the General Meeting with the commercial and financial preference share. This makes the of Shareholders held on 20 June strategy pursued, but also with the total dividend including the statutory 2018. The Supervisory Board would efforts being made by Surinaamse part SRD 857.25 per SRD 5 ordinary like to thank Mr. Naarden for his Brouwerij N.V. in the areas of safety, share and SRD 8,580 per SRD 50 commitment during the period that the environment and road safety preference share. he served as a Board Member and awareness. This not only enhances Chairman of the Board. the welfare of the employees, but

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Sustainable development

We believe in sustainability as a driver for business Consumer matters Community engagement success and in the private sector as a positive force Deposit increase STIVASUR for change. Our sustainability strategy is therefore Because the lack of returned bottles was a structural As a member of STIVASUR, Surinaamse Brouwerij has not just one of our four commercial priorities. challenge that needed to be addressed, we increased been making an important contribution to raising It brings together our brands in order to respect the deposit in 2018 in order to further stimulate awareness of responsible alcohol consumption since people and planet and drives us towards progressive consumers to return bottles. Because this is a 2015. We fully support STIVASUR’s vision of fully ways of tackling the challenges in society. permanent investment for the company, our efforts eliminating alcohol abuse. In 2018 the focus was to raise awareness amongst our consumers about again on alcohol and road traffic, whereby the most As part of HEINEKEN, Surinaamse Brouwerij follows returning the bottles will continue. important message was that the two should never the same sustainability agenda in its localized be combined. In this context STIVASUR produced an sustainability strategy entitled ‘Brewing a better information film which explores and discusses the Suriname’. The strategy comprises goals in six areas negative consequences of alcohol abuse from various LIM that are important to us, because we believe that S perspectives with representatives from - amongst S we can make the biggest difference with regard to E others - a hospital, Psychiatrisch Centrum Suriname

E N

I environmental and social issues in these areas. W (Suriname Psychiatric Centre) and the Suriname police

M force. The aim of the information film was to increase ‘ Although we are aware that there is still a lot LEVE R awareness about the consequences of alcohol abuse, of work to be done in some of these areas, such particularly on the roads. It is noteworthy that this was as reducing our water consumption and carbon We are particularly pleased that the Surinaamse the first information film in Suriname which featured emissions, we would like to share the progress that Consumentenkring (Suriname Consumer Association) information about the use of standard glasses. The we have made so far as set out in the sustainability has recognized that this initiative seeks to make a most important benefit of using standard glasses is report. significant contribution to a green Suriname, and has that it enables consumers to monitor their own alcohol demonstrated this by awarding our environment policy consumption. a Green Award on 3 May 2018. Support Recycling Suriname Foundation The Support Recycling Suriname Foundation (SuReSur) Maatschappelijke is one of Surinaamse Brouwerij’s partners in raising awareness about waste in the environment. Various activities were carried out in conjunction with SuReSur over the past year. One of these activities was producing the information program “Why Recycle?”. Surinaamse Brouwerij contributed to this by emphasizing the benefits and importance of returnable bottles and actually returning them for reuse.

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SUSTAINABILITY REPORT

‘Brewing a Better World’ is our global sustainability strategy that unites all HEINEKEN operating companies to be a sustainable force for change. Focusing on the areas where we aim to make the greatest dierence, it inspires our brands to align their purpose with tackling environmental and social issues. We are determined to contribute to 6 of the UN Sustainable Development Goals through this strategy. Suriname in 2018 Alcohol-related Only 1 harms addressed in partnership with NGO accident in 2018, but still one too many. ‘STIVASUR’ and promote responsible We keep making eorts to achieve 0 consumption Advocating responsible Promoting health accidents through permanent trainings. consumption and safety World Clean Up Day Local sourcing Surinaamse Brouwerij contributed to World Clean Up In all the countries where HEINEKEN operates the People Day on 15 September 2018 by assisting with cleaning organization seeks to source local products, particularly 100% suppliers 24% less Weg naar Zee with some of its employees. The focus from the agricultural sector. If the general operation of signed our Supplier Code, ensuring Sourcing ‘Every drop’: water used to produce each litre high standards of business sustainably protecting beer since 2008, down to 5hl/hl was thereby on the importance of cleaning up the P water resources the business is in line with the HEINEKEN standards for conduct and respect for human r thanks to our new brew house o t environment and keeping it clean for a better Suriname. s rights and the environment. p e and water reducing initiatives. quality and Code of Business Conduct, we are happy e n ri la to enter into a long-term contract with local producers. ty P Social growth Although production in Suriname is currently on a small Together with our entire workforce we performed scale, which means that the price of raw materials is 180 employees Growing with ‘Drop the C’: reducing CO2 down 8% voluntary work in four retirement homes. Various communities CO2 emissions high, Surinaamse Brouwerij continues to actively seek volunteered in addition to financial emissions in production since 2008 to activities were carried out, depending on the specific support to four residential homes 17.5 kg CO2-eq/hl beer. Our combined alternative ways of purchasing more local products, needs of the retirement home, including maintenance, and to support World Clean Up eorts to reduce CO2 emissions particularly raw materials. day activities. are starting to pay o! cleaning and repair work. At the end of the day every one of our 182 employees returned home with a sense Sustainable business practices are not just a popular For more on our sustainability journey: of satisfaction. buzzword, but a necessary mindset. www.surinaamsebrouwerij.com/duurzaamheid At Surinaamse Brouwerij we are convinced that Innovations humanity’s survival can only be assured if we approach Launch Radler 0.0% sustainability in an integrated way in our thoughts and The trend for entering the ‘Low and No Alcohol’ actions. segment has started worldwide. Surinaamse Brouwerij is not being left behind and is responding to this change With ‘Brewing a better Suriname’ we are communicating in a world where there is more concern about health, our vision in order to continue to have a significant welfare and moderated consumption. With the launch impact on people and the environment in Suriname. of Radler 0.0% we are enabling consumers to enjoy a beer product without alcohol.

SURINAAMSE BROUWERIJ N.V. 2018 ANNUAL REPORT 28 Suriname 29 SurinameSuriname

Advocating responsible Advocating Supporting the consumption responsible– a first for circular economyconsumption SupportingSupporting the the AdvocatingSuriname responsible with returnable– a first for circularcircular economybottles economy consumptionWe are a founding – a member rst with returnable Surinamefor Surinameof Stivasur, the Foundation Volunteering with returnableAs a firm believer in the for Responsible Alcohol bottlessustainable power of Wereturnable are a founding Consumption member in Suriname. Volunteering bottles of Stivasur, theWe areFoundation a founding member of packaging, we have taken bold Stivasur,This the year, Foundation we developed for a Volunteering As a firm believerAs a rm in believer the in the sustainablefor Responsible Alcohol for the steps to improve the return rate Responsibleshort documentary Alcohol Consumption to explain in sustainable power of of returnable returnable packaging, Consumption we in Suriname. have takenof bottles bold steps from to the improve market. the We Suriname.the adverse This year, eectswe developed of alcohol a packaging, we have taken bold This year, we developed a for the elderly returnpartnered rate of bottles with from a contractorthe market. shortabuse. documentary The documentary to explain the is for the steps to improve the return rate short documentary to explain to collect empty returnable adversethe eects first ofof alcoholits kind abuse. in Suriname This year, our entireelderly workforce of 182 employees chose to We partnered with a contractor to of bottles fromcollect thebottles empty market. returnablefrom We consumer’s bottlesthe from homes adverse Theeects documentaryand of it alcohol features is the representatives rst of its kind dedicate our volunteeringThis year, our event entire to workforcesupporting of four182 employeeshomes for chose to partnered withconsumer’s aand contractor we homes were and awarded we wereabuse. the The documentaryin Surinamefrom the and ispolice, it features medics represen and- the elderly. dedicate our volunteering event to supporting four homes for elderly to collect emptyawarded “Greenreturnable the “Green Award” Award” by consumer by the first of itstatives kindsomeone fromin Suriname the police,responsible medics andfor the elderly. They volunteered their time to cleaning, gardening and repair bottles fromconsumer consumer’sorganisation organisation homes “Consumenten “ and it features someone representativescausing responsible a fatal for accident causing a while This year, our entire workforce of 182 employees chose to fatal accident while driving under the and maintenanceThey at volunteeredthe homes. Helpingtheir time elders to cleaning, in need gardening is a very and repairand we wereConsumenten awardedKring” thefor Kring” our for eorts. our eorts. fromAfter the police, medicsdriving underand the influence of dedicate our volunteering event to supporting four homes for inuence of alcohol. rewarding experienceand maintenance and the gratitude at the homes. we received Helping was elders in need is“Green a very Award” bycareful consumer consideration, someone we responsiblealcohol. for It was broadcasted the elderly. After careful consideration, we also humbling. rewarding experience and the gratitude we received was organisationhumbling. “Consumentenalso increased the depositcausing a fatal accidentduring 2018 while National Road Our sta returned home lled with a deeper respect for the men increased the deposit amount per It was broadcasted during 2018 They volunteeredOur their sta time returned to cleaning, home filledgardening with a and deeper repair respect for theKring” men for our eorts.amount After per bottle to drivingprovide under theSafety influence Month of and was well andand women maintenance who have at the paved homes. the Helping way for elders new ingenerations need is a very with careful consideration,bottle to provide we an incentive foralcohol. It wasNational broadcasted Road Safety Month and was and women who have paved the way for new generations with an incentive for more people to well viewedviewed on on local local and and social theirrewarding contribution experience to society. and the gratitude we received was humbling. also increasedmore the people deposit to return bottles. during 2018 National Road their contribution to society. return bottles. socialmedia. media. Our sta returned home filled with a deeper respect for the men amount per bottle to provide Safety Month and was well and women who have paved the way for new generations with an incentive for more people to viewed on local and social their contribution to society. return bottles. media.

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2018 financial statements

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Consolidated balance sheet at 31 December Consolidated income statement (Before proposed profit appropriation)

2018 2017 2018 2017

Assets Note SRD SRD Note SRD SRD

Tangible fixed assets 1 212,280,771 164,195,495 Revenue 14 386,140,895 353,150,599

Intangible assets 2 8,151,626 8,970,631

Long-term receivables - 137,530 Other income 10,542 432,279

Deferred tax assets 3 9,975,775 9,999,441

Total non-current assets 230,408,172 183,303,097 Raw materials, consumables and services 15 -183,326,853 -174,754,335

Personnel costs 16 -48,100,224 -41,144,302

Inventories 4 26,297,934 24,106,293 Depreciation and amortization 17 -22,880,384 -24,192,285

Securities 5 1 1 Total expenses -254,307,461 -240,090,922

Income tax receivable 6 6,485,427 6,485,427 Result from operating activities 131,843,976 113,491,956

Receivables 7 16,955,938 27,056,547 Finance expense 18 -3,013,301 -9,808,832

Cash and cash equivalents 8 30,293,031 59,442,735 Profit before income tax 128,830,675 103,683,124

Total current assets 80,032,331 117,091,003 Income tax expense -46,379,043 -37,325,925

Total assets 310,440,503 300,394,100 Net profit 82,451,632 66,357,199

Attributable to: Liabilities - Shareholders of Amstel Brouwerij B.V. 62,910,595 50,630,543 Shareholders’ equity 76,535,992 62,923,019 - Other shareholders 19,541,037 15,726,656

Provision for deferred tax liabilities 9 1,275,665 3,016,620

Provision post-retirement medical benefit plan 10 10,814,133 8,574,476

Long-Term Incentive Plan liability 1,228,453 1,120,604

Long-term loans 11 103,200,000 108,000,000

Total non-current liabilities 116,518,251 120,711,700

Income tax payable 12 16,127,265 29,984,993

Short-term debts 13 101,258,995 86,774,388

Total current liabilities 117,386,260 116,759,381

Total liabilities 310,440,503 300,394,100

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Consolidated summary of changes in Consolidated cash flow statement shareholders’ equity 2018 2017 SRD SRD Issued and paid-in Retained

capital earnings Total Net profit 82,451,632 66,357,199 SRD SRD SRD Depreciation and amortization 22,880,384 24,192,285

Balance at 1 January 2017 476,500 64,447,007 64,923,507 Book profit on sale of tangible fixed assets -10,542 -432,279 Interest (income)/expense - net 1,632,563 942,949 Distribution final dividend 2016 - -34,951,253 -34,951,253 Income tax expense 46,379,043 37,325,925 Distribution interim dividend 2017 - -26,969,900 -26,969,900 Cash flow from operational activities before changes Net profit 2017 - 66,357,199 66,357,199 in working capital and provisions 153,333,080 128,386,079 Statutory dividend 2017 - -23,847 -23,847 Change in inventories -2,191,641 6,313,580 Exchange rate results arising from revaluation - -5,120,000 -5,120,000 Change in receivables 10,238,139 -18,373,506 of group loans Change in current liabilities 10,711,273 1,463,599 Actuarial results due to provision for - -1,391,309 -1,391,309 Total change in working capital 18,757,771 -10,596,327 post-retirement medical benefits Change in provision post-retirement medical benefit plan and LTIP 1,561,496 1,179,531 173,652,347 118,969,283 Long Term Incentive Plan - 98,622 98,622 Cash flow from business activities

Balance at 31 December 2017 476,500 62,446,519 62,923,019 Interest paid and received -1,700,854 -474,002 Income tax paid -61,616,306 -36,761,702 Balance at 1 January 2018 476,500 62,446,519 62,923,019 Cash flow from operational activities 110,335,187 81,733,579

Distribution final dividend 2017 - -33,140,553 -33,140,553 Investments in tangible fixed assets -70,146,656 -56,018,305 Distribution interim dividend 2018 - -40,026,000 -40,026,000 Proceeds from sale of tangible fixed assets 10,542 897,939 Net profit 2018 - 82,451,632 82,451,632 Cash flow from investment activities -70,136,114 -55,120,366 Statutory dividend 2018 - -23,847 -23,847 Free operational cash flow 40,199,073 26,613,213 Exchange rate results arising from revaluation - 4,800,000 4,800,000 Dividends paid -69,348,775 -37,866,065 of group loans Loan from Heineken International B.V. - 71,200,000 Actuarial results due to provision for Cash flow from financing activities -69,348,775 33,333,935 post-retirement medical benefit plan. - -725,115 -725,115

Long Term Incentive Plan - 276,857 276,857 Net cash flow -29,149,702 59,947,148 Cash and cash equivalents at 1 January 59,442,736 -504,412 Balance at 31 December 2018 476,500 76,059,493 76,535,993 Cash and cash equivalents at 31 December 30,293,034 59,442,736

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3. Significant accounting policies Transactions in foreign currencies have been converted Notes to the consolidated financial General at the exchange rate on the transaction date. The The accounting policies described below have been exchange rate differences arising from the settlement statements applied consistently for the periods presented in these and conversion are recognized in the income statement. consolidated financial statements and have also been applied to the subsidiaries unless stated otherwise. C. Tangible fixed assets 1. Owned assets 1. Reporting Entity B. Basis of measurement A. Basis of consolidation The tangible fixed assets are valued at historical cost Surinaamse Brouwerij N.V. (SBNV or the ‘Company’) is Unless stated otherwise, the consolidated financial 1. Subsidiaries less the accumulated depreciation and cumulative a public limited company established and domiciled in statements are prepared on a historical cost basis. Subsidiaries are entities over which SBNV has decisive impairment losses. The historic cost comprises the Paramaribo, Suriname. The company is 76.3% owned control and where SBNV is able to exercise its rights to purchase cost and all expenditure which is directly by Amstel Brouwerij B.V., a corporation established in C. Functional and presentation currency the variable returns from its involvement with these attributable to the asset. The cost of self-produced assets Amsterdam, the Netherlands, which is a wholly-owned The consolidated financial statements have been entities on the basis of its decisive control. The financial consists of the cost of materials and direct labor and all subsidiary of HEINEKEN N.V. prepared in Surinamese Dollars (SRD), which is the statements of subsidiaries are fully consolidated in the other costs that can be directly attributed to preparing company’s functional currency. All financial information consolidated financial statements from the date that the the asset for its intended use. Group Companies presented in SRD is rounded to the nearest SRD. decisive control starts until the date when that control Surinaamse Brouwerij N.V. is at the head of a group of ceases. Spare parts that have been purchased as part of a legal entities (collectively referred to as ‘SBNV Group’). D. Use of estimates, assumptions and judgements tangible fixed asset and can functionally only be used On 4 July 2016 Surinaamse Brouwerij N.V. as the sole The preparation of the financial statements requires 2. Loss of control as part of the tangible fixed asset concerned will be director acquired dominant control of Stichting Super management to make certain estimates, assumptions In the event of loss of control all the assets and liabilities capitalized as an asset and amortized as tangible fixed Trans Atlantic, which holds the economic ownership of and judgements that affect the application of accounting of the subsidiary and the other components of equity assets. In all other cases these spare parts are carried as the movable and immovable goods. policies and the reported amounts for assets and associated with the subsidiary will be removed from inventory and recognized in the income statement when liabilities and income and expenditure. The estimates the consolidation. The resulting gains or losses are used. Where tangible fixed assets consist of spare parts The company’s consolidated financial statements 2018 made in the financial statements relate to - amongst recognized in the income statement. with a variable period of usage, these are included as comprise of Surinaamse Brouwerij N.V., Parbo Centrale other things - the estimated economic lifespans and separate items under the tangible assets. N.V., Stichting Super Trans Atlantic and Premium residual values of the intangible and tangible fixed 3. Transactions eliminated in consolidation Beverage N.V. Premium Beverage N.V. is a dormant assets, provisions for deferred tax liabilities, post- Transactions between group companies and receivables Packaging in circulation is recorded as tangible fixed company. retirement medical benefit plan, obsolete inventories and debts between them and unrealized results that assets and a liability is included for the liability to repay and bad debts. Actual outcomes and results can differ arise from such transactions are eliminated when the deposits to the customers. This liability is included in Surinaamse Brouwerij N.V.’s core activities are the from these estimates. preparing the consolidated financial statements. the balance sheet under the short-term debts. brewing, bottling, importing, sale, distribution and exporting of beer under the brand names PARBO Bier, Estimates and the underlying assumptions are reviewed B. Transactions in foreign currencies 2. Subsequent expenditure PARBO Chiller, PARBO Light, PARBO Radler, Sranan Biri, on an ongoing basis. Changes to estimates are included Monetary assets and liabilities denominated in foreign The expenditure to replace a part of a tangible fixed asset Heineken®, Desperados, SOL and Vitamalt. in the period when the estimate is reviewed if the change currencies are converted to SRD at the exchange is recognized in the carrying amount of the asset or, only affects that period, or in the period in which the rates on the balance sheet date as specified by De where applicable, included as a separate asset if it is likely 2. Basis for the preparation of the financial estimate is reviewed and in future periods if the change Surinaamsche Bank N.V. that the future economic benefits with regard to the asset statements affects both the current and future periods. will accrue to the company and the cost of the asset can A. Statement of compliance The conversion exchange rates on the balance sheet be reliably calculated. The carrying amount of a replaced The consolidated financial statements have been The most important estimates, assumptions and date are as follows: asset is derecognized. The costs of the daily maintenance prepared in accordance with generally accepted judgements in applying the accounting policies for of the tangible fixed assets is included in the income accounting policies. Surinaamse Brouwerij N.V. have been described in the statement when they are incurred. notes to the consolidated financial statements. USD 1 = SRD 7,53 (Ultimo 2017: USD 1 = SRD 7,52)

The consolidated financial statements have been EURO 1 = SRD 8,60 (Ultimo 2017: EURO 1 = SRD 9,00) 3. Depreciation and amortization prepared by Management of the company and will be Depreciation is calculated on the depreciable amount, submitted to the General Meeting of Shareholders for which is the cost of an asset or another amount approval on 19 June 2019. substituted for cost less the residual value.

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Land is not depreciated as it is deemed to have an payment due is likely, the associated costs can be reliably to settle on a net basis or to realize the assets with if the pension fund has insufficient assets to pay all infinite life. Depreciation on other tangible fixed assets is estimated and there is no longer any active control over simultaneous settlement of the liabilities, financial assets employees the benefits relating to employee service in charged to the income statement on a straight-line basis the intangible assets. and financial liabilities are presented in the balance the current and prior periods. Liabilities for contributions based on the estimated useful life. No depreciation is sheet as a net amount. The right of set-off is available to the defined contribution plans are recognized as an applied to projects in progress. The estimated useful life E. Inventories at any time during the current period under review employee benefit expense in the income statement for the current and comparison period is as follows: 1. General and is not dependent on a future event and is legally in the periods during which services are rendered by • Buildings and premises 15-40 years Inventories are valued at the cost price or lower net enforceable for all counterparties in the normal course of employees. • Plant and machinery 10-30 years realizable value. The cost of the inventories is based business, including in the event of default, insolvency or • Other tangible fixed assets 3-15 years on the weighted average cost price and includes the bankruptcy. 2. Defined benefit pension plan acquisition costs, the production or conversion costs A defined benefit pension is any other scheme relating 4. Gains and losses on sale and the other costs that are incurred to transport the 2. Financial assets to remuneration following employment other than the Gains on the sale of tangible fixed assets are included inventories to their current location and bring them to Financial assets, mainly trade receivables, are assessed defined contribution plan. A defined benefit pension plan in the income statement under other income. Losses the current state. Net realizable value is the estimated on every reporting date in order to determine whether is a pension plan whereby the amount that an employee on sales of tangible fixed assets are included under selling price in the ordinary course of business less the there is objective evidence that the asset is impaired. A will receive following the end of his employment is depreciation. Gains and losses are recognized in the estimated costs still to be incurred. financial asset is considered to being impaired if objective usually dependent on various factors such as age, years income statement when the most important risks and evidence indicates that one or more events have had of service and remuneration. SBNV Group’s net liability rewards of ownership have passed to the buyer, the 2. Finished products and work in progress a negative effect on the anticipated future cash flows under the defined benefit pension plan relates to the collection of the payment due is likely, the associated Finished products and work in progress are valued that can be estimated reliably. All impairment losses provision for post-retirement medical benefits. The costs can be reliably estimated and there is no longer any at manufacturing cost based on average cost, taking are recognized in the income statement. An impairment provision is formed on the basis of the commitments active control over the tangible fixed assets. account of the production stage reached. The costs loss is reversed if the reversal can be objectively linked given by the employer for free medical care for include an appropriate share of the indirect production to an event that occurred after the impairment loss was beneficiaries and their relatives who are entitled to D. Intangible assets costs based on normal production capacity. recognized. these rights. The provision is determined on the basis of 1. General actuarial calculations based on the ‘projected unit credit Intangible assets are capitalized software that is valued at 3. Other inventories and spare parts 3. Cash and cash equivalents method’. SBNV recognizes all actuarial profits and losses cost price less the accumulated amortization. The other inventories and spare parts are valued at Cash and cash equivalents comprises cash and bank relating to the defined benefit pension plan immediately weighted average cost prices. Value reductions and balances and other call deposits. Bank overdrafts are an in the equity (retained earnings), all costs relating to the 2. Subsequent expenditure usage of parts are charged to the income statement. integral part of the SBNV Group’s cash management and defined benefit pension plan as personnel expenses, and Future expenditure on intangible assets will only be Spare parts that have been purchased as part of a are included as part of the cash and cash equivalents for the other financial income and expenditure in the income capitalized if it causes the future economic benefits tangible fixed asset and can only be used as part of the the purpose of the cash flow statement. statement. embodied in the specific asset to increase. tangible fixed asset concerned will be capitalized as an asset and depreciated as tangible fixed assets. Where H. Share capital 3. Share-based remuneration 3. Depreciation and amortization necessary a provision for obsolete inventory is deducted 1. Ordinary and preference shares The liability for the ‘Long Time Incentive Plan (LTIP)’ Amortization is calculated on the cost price of the asset from the inventory value. Ordinary and preference shares are classified as equity. relates to the remuneration scheme operated by or another amount substituted for the cost price less Costs which are directly attributable to the issuing of Heineken International for expatriates. the residual value. Intangible assets with a finite lifespan F. Securities ordinary shares are deducted from the equity, taking The fair value on the allocation date of the (provisionally) are depreciated on a straight-line basis based on the The securities are valued at the acquisition price. account of any tax effects. awarded rights to shares, adjusted for expected estimated useful life from the date when these assets are dividends, is included under personnel expenses with a available for use. The estimated useful life of software is G. Non-derivative financial instruments 2. Dividend corresponding increase in equity over the period in which three (3) years. 1. General Dividends are recognized as a liability in the period in the employees acquire the unconditional right to shares. Non-derivative financial instruments comprise trade which they are declared under a resolution. The costs of the LTIP are spread evenly across this period, 4. Gains and losses on sale and other receivables, cash and cash equivalents, loans whereby account is taken of the anticipated forfeitures. Gains on the sale of intangible assets are included in the and borrowings from credit institutions, trade and other I. Employee benefits On the balance sheet date SBNV revises the estimates of income statement under other income. Losses on sales payables, and are valued at fair value plus the directly 1. Defined contribution plans the number of unconditional share rights and recognizes of tangible fixed assets are included under depreciation. attributable transaction costs. A defined contribution plan is a post-employment the impact of this revision in the income statement with a Gains and losses are included in the income statement benefit plan (pension plan) under which SBNV pays fixed corresponding adjustment to the equity. when the most important risks and rewards of ownership If SBNV has the legal right to offset financial assets contributions to a separate entity. SBNV has no legal have been transferred to the buyer, the collection of the against financial liabilities and SBNV intends either or constructive obligations to pay further contributions

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4. Short-term employee benefits M. Expenses on the same taxable entity or on different entities which Short-term employee benefits are included at face value Expenses are recognized as an expense in the period in intend to settle the current tax liabilities and assets on and recognized in the income statement in the period which they are incurred. a net basis or will realize their tax assets and liabilities in which the related service is provided. A short-term simultaneously. liability is recognized for the sum which is expected to N. Interest income, interest expenditure and other be paid out in connection with short-term employee net financing income and expenditure P. Earnings per share benefits if SBNV has a legal or constructive liability to pay Interest income and expenses are recognized in the SBNV presents basic earnings per share (EPS) data for this amount and the obligation can be reliably estimated. income statement using the effective interest method. the ordinary shares. The basic earnings per share are Interest on the net liability arising from pension calculated by dividing the after-tax earnings attributable J. Provisions commitments and exchange rate differences are to SBNV’s ordinary shareholders by the weighted 1. General included under financial income and expenditure. average number of the ordinary shares outstanding A provision is recognized in the balance sheet if SBNV has Dividends are recognized in the income statement at the during the financial year. a legal or constructive liability on the basis of an event time when they are awarded to the company. from the past and a reliable estimate can be made of Q. Cash flow statement the amount of the obligation, and when it is reasonable O. Income tax expense The consolidated cash flow statement has been to assume that an outflow of economic resources is 1. General prepared using the indirect method, whereby a required in order to settle the obligation. Provisions are Income tax comprises the current and deferred tax. distinction is made between operational, investment valued at the present value of the expenditure that is Current and deferred tax is recognized in the income and financing activities. Dividends paid to shareholders expected to be necessary in order to settle the obligation, statement unless it relates to a consortium or items that are included in the cash flow from financing activities. making use of a pre-tax discounting rate which reflects are recognized directly in the equity. Dividends received are included in the cash flow market expectations relating to the value of money over from operational activities. The funds in the cash flow time and the specific risks attached to the obligation. The 2. Current income tax statement consist of items with a term of less than one increase in the provision as a result of the passage of Current income tax is the income tax which is expected year, including cash and balances and debts with banks time is included as part of the net financing expenses. to be paid or received on the taxable result, calculated insofar as these are payable on demand. using the tax rates that are stipulated by law on K. Revenue the balance sheet date or which have already been Revenue from the sale of goods is valued at the fair value substantively decided on the balance sheet date, subject of the payment received or receivable, net of sales tax, to adjustments to taxes for preceding financial years. duties, returns, customer discounts and other sales- Current tax liabilities also include any tax liabilities arising related discounts. Revenue from the sale of goods is from the granting of dividends. recognized in the income statement if the amount of the revenue can be measured reliably, the significant risks 3. Deferred taxes and rewards associated with ownership of the goods Deferred taxes are recognized for temporary differences have been transferred to the buyer, collection of the between the carrying amounts of assets and liabilities payment is probable, the associated costs and possible for the purpose of the financial reporting and the returns of the goods can be reliably estimated and the carrying amount of those items for tax purposes. goods are no longer under SBNV’s control. Deferred taxes are calculated on the basis of tax rates (and tax laws) that have been substantively enacted on L. Other income the balance sheet date and which are deemed to be in Other income relates to gains from the sale of tangible force when the relevant deferred tax asset is realized, fixed assets. These are recognized in the income or the deferred profit tax liability is settled. Deferred statement as soon as the significant risks and rewards tax assets and liabilities are offset if there is a legally of ownership of the goods have been transferred to the enforceable right to offset the tax liabilities and assets buyer. and these relate to taxes levied by the same tax authority

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Depreciation is based on the estimated economic Notes to the consolidated balance sheet lifespan of the assets concerned. The item ‘projects in progress’ relates to capitalized costs of tangible fixed 1. Tangible fixed assets assets for which the relevant final status has not yet The movement is as follows: Land and Plant and Projects in been achieved on the balance sheet date. buildings machinery Other TFA Vehicles progress Packaging Total SRD SRD SRD SRD SRD SRD SRD 2. Intangible assets Cost The movement of this item is as follows: 2018 2017 Balance at 1 January 2017 55,621,647 126,474,507 24,339,740 15,903,699 16,561,678 35,330,205 274,231,476 SRD SRD Investments 93,230 - 6,901,506 3,778,470 36,915,292 8,329,807 56,018,305 Book value at 1 January 8,970,631 9,697,990 Completed projects 5,503,369 8,800,353 - - -14,303,722 - - Amortization -819,005 -727,359 Disposals -525,278 -10,067,405 -319,643 -2,463,798 - - -13,376,124 Book value at 31 December 8,151,626 8,970,631 Balance at 31 December 2017 60,692,968 125,207,455 30,921,603 17,218,371 39,173,248 43,660,012 316,873,657

3. Deferred tax asset Balance at 1 January 2018 60,692,968 125,207,455 30,921,603 43,660,012 17,218,371 39,173,248 316,873,657 The movement of this item is as follows: 2018 2017 Investments - - - - 70,146,656 - 70,146,656 SRD SRD Completed projects 27,988,563 50,464,456 2,468,152 2,011,819 -87,107,070 4,174,080 - Loss before income tax Surinaamse Disposals - -180,900 - -142,800 - - -323,700 Brouwerij and Stichting Super Trans Atlantic 39,600 17,603,356 Balance at 31 December 2018 88,681,531 175,491,011 33,389,755 19,087,390 22,212,834 47,834,092 386,696,613 Balance at 1 January 9,999,441 4,025,903 Corporation tax (36% tax rate) 14,256 6,337,208 Accumulated depreciation Actuarial results provizsion for Balance at 1 January 2017 -18,962,200 -75,383,853 -17,027,180 -8,441,161 - -22,309,308 -142,123,702 Release of deferred tax assets -37,922 747,402 Depreciation and amortization -1,611,082 -6,148,785 -3,562,943 -2,546,460 - -9,595,656 -23,464,926 Vrijval latente belastingvorderingen - -1,111,072 Disposals 525,276 10,067,407 319,643 1,998,139 - - 12,910,465 Book value at 31 December 9,975,775 9,999,441 Balance at 31 December 2017 -20,048,006 -71,465,231 -20,270,480 -8,989,482 - -31,904,964 -152,678,163 This item relates to a deferred tax asset arising from the loss suffered in 2016 and 2017 by Surinaamse Balance at 1 January 2018 -20,048,006 -71,465,231 -20,270,480 -31,904,964 -8,989,482 - -152,678,163 Brouwerij (company) and Stichting Super Trans Depreciation and amortization -2,352,450 -5,751,473 -4,704,871 -2,851,432 - -6,401,153 -22,061,379 America. Management expects there will be sufficient Disposals - 180,900 - 142,800 - available profits in the future to offset the losses. - 323,700 Balance at 31 December 2018 -22,400,456 -77,035,804 -24,975,351 -11,698,114 - -38,306,117 -174,415,842

Book value

At 31 December 2017 40,644,962 53,742,224 10,651,123 8,228,889 39,173,248 11,755,048 164,195,495 At 1 January 2018 40,644,962 53,742,224 10,651,123 8,228,889 39,173,248 11,755,048 164,195,495 At 31 December 2018 66,281,075 98,455,207 8,414,404 7,389,276 22,212,834 9,527,975 212,280,771

SURINAAMSE BROUWERIJ N.V. 2018 ANNUAL REPORT 44 45

4. Inventories 8. Cash and cash equivalents

Inventories comprise of: 2018 2017 The cash and cash equivalents can be itemized as follows: 2018 2017 SRD SRD SRD SRD Raw materials and consumables 2,893,141 1,656,918 Cash in bank 29,804,501 58,874,346 Packaging materials 9,287,689 7,220,505 Cash on hand 488,530 568,389 Work in progress/goods being processed 1,696,622 1,454,433 Total 30,293,031 59,442,735

Finished goods 257,918 19,438 The cash and cash equivalents are at the free disposal of the company. Goods for resale 6,502,084 8,311,181

Other inventories and technical materials 5,660,480 5,443,818 9. Provision for deferred tax liabilities production process. The base stock method is used Total 26,297,934 24,106,293 The provision for deferred tax liabilities relates to the for the valuation of certain inventory groups for tax items ‘tangible fixed assets’ and ‘inventories’. With purposes. The use of the base stock method ceased regard to the tangible fixed assets the difference is with effect from the financial year 2018 and will be used 5. Securities caused by, on the one hand, deviating principles of in preparing the final return for 2018. The item ‘Securities’ relates to one share in Torarica valuation for tax purposes and, on the other hand, by Holding N.V. valued at acquisition cost. The market deviating economic lifespans resulting from fiscally value on 20 December 2018 is SRD 80. accelerated depreciation on certain assets used in the

The provision can be itemized as follows: 2018 2017 6. Income tax receivable The income tax receivable relates to the sums to be SRD SRD reclaimed from the Tax Administration in connection Lower fiscal book value of tangible fixed assets 8.712.661 9.716.308 with overpaid income tax for the financial years 2012, Difference in valuation of land, no deferred tax liability 2013 and 2016. because of infinite lifespan

Elimination intercompany profit on Parbo Centrale inventories -2.298.169 -2.298.169 Lower fiscal valuation of inventories due to -2.870.973 -3.007.548 7. Receivables base stock method The itemization is as follows: 2018 2017 Valuation difference: commercial versus fiscal - 3.968.908 SRD SRD Provision for deferred tax liability, nominally 36% 3.543.519 8.379.500 Trade receivables and other receivables 9,834,174 8,531,719 Lower fiscal book value of tangible fixed assets 1.275.665 3.016.620 Affiliated companies 644,270 494,818 Prepayments 6,477,494 18,030,010 Total 16,955,938 27,056,547

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 20182018 ANNUALANNUAL REPORTREPORT 46 47

10. Provision post-retirement medical benefit plan inflation is 12.94% (2017: 15.0%). The annual increase 13. Short-term debts The calculation is based on current actuarial in the yearly medical costs as a result of inflation is The itemization is as follows: 2018 2017 assumptions in Suriname with a discount rate (after assumed to be 12.24% (2017: 11.9%). correction for inflation) of 0.62% SRD SRD (2017: 2.78%). The discount rate uncorrected for Affiliated companies 8,100,293 5,473,062 Suppliers 32,982,790 28,691,215 The movement of the provision is as follows: 2018 2017 Other payables and accrued liabilities 60,175,912 52,610,111 SRD SRD Total 101,258,995 86,774,388 Present value of the liabilities at 1 January 8,574,476 5,699,161 Withdrawals -673,797 -572,572 Current service costs 693,067 402,740 Other payables and accrued liabilities The composition of this item is as follows: Interest paid on provision for post-retirement medical benefit plan 1,048,233 801,099 2018 2017 Past service costs/(credit) 109,288 - SRD SRD Dividends payable Actuarial results 1,062,866 2,244,048 42,239,574 38,397,948 Personnel costs payable (including expatriates) Present value of the liabilities at 31 December 10,814,133 8,574,476 4,013,674 5,722,444 Deposits 7,426,553 4,682,407

11. Long-term loans International B.V. entered into on 1 September 2017 Wages tax and state pension (AOV) premium payable 1,069,857 1,426,050 Surinaamse Brouwerij N.V. has two (2) loan agreements for a sum of 8 million euro with an annual interest rate Excise duties and sales tax payable 4,025,727 677,822 with Heineken International B.V. of 1.80%. Surinaamse Brouwerij N.V. has provided no Other payables and accrued liabilities 1,400,527 1,703,440 The details are as follows: sureties or guarantees for this loan. The repayment date is 1 September 2022. Interest is payable from the Total 60,175,912 52,610,111 The first (1st) long-term debt relates to a long-term start date until the repayment date of the loan. loan entered into on 4 July 2016 between Surinaamse Brouwerij N.V. and Heineken International B.V. for a The interest paid over the financial year 2018 for both sum of 4 million euro with an annual interest rate of loans is SRD 1,708,076 (2017: SRD 962.786). 1.75%. SBNV has provided no sureties or guarantees for this loan. The repayment date is 5 July 2021. Interest is payable from the start date of this loan until the repayment date. The sole purpose of the loan is to purchase the movable and immovable goods of Stichting Super Trans Atlantic. The second (2nd) long-term debt is a loan agreement between Surinaamse Brouwerij N.V. and Heineken

12. Income tax payable This item consists of the income tax payable for the fi- nancial year 2018.

SURINAAMSE BROUWERIJ N.V. 2018 ANNUAL REPORT 48 49

Notes to the consolidated income statement

14. Revenue

Revenue consists of: 2018 2017 SRD SRD Domestic sales 381,297,573 347,476,713 Export 4,857,182 5,759,307 Discounts -13,860 -85,421 Total 386,140,895 353,150,599

15. Raw materials, consumables and services 2018 2017 SRD SRD Raw materials 16,008,135 15,813,320 Packaging materials 24,179,529 23,128,124 Goods for resale - imported beer 90,773,182 84,513,164 Sales expenses 9,463,839 10,440,004 Inventory movements -218,023 1,037,809 Repairs and maintenance 6,991,946 6,972,717 Energy and water 7,630,078 6,698,223 Other expenses 28,498,167 26,150,974 Total 183,326,853 174,754,335

SURINAAMSE BROUWERIJ N.V. 2018 ANNUAL REPORT 50 51

Other expenses 16. Personnel costs

Other expenses consist of: 2018 2017 The personnel expenses are made up as follows: 2018 2017 SRD SRD SRD SRD HEINEKEN Group service fees 3,372,493 3,227,991 Salaries, holiday allowances and bonuses 22,497,691 18,381,990 Storage expenses 1,584,153 3,086,118 Expatriate expenses 9,160,529 10,514,293 Distribution expenses 2,593,373 2,619,531 Other employee benefits and allowances 3,265,234 3,730,852 Third party services 2,875,968 2,388,512 Employer’s contribution to pension plan 3,409,415 2,604,379 Net change in returnable bottles deposit account 2,707,757 2,052,266 Medical fees 1,208,258 1,034,878 HEINEKEN Group IT costs 2,366,078 1,772,556 Change in provision for post-retirement medical benefit plan 802,355 402,740 Conveyor lubricants and other consumables 1,770,176 1,597,786 Agency staff 4,932,092 2,671,778 IT and telecommunications 2,556,949 1,577,088 Other personnel expenses 2,824,650 1,803,393 Security expenses 1,800,635 1,531,690 Total 48,100,224 41,144,302 Bank charges 1,257,451 1,254,654 Insurance expenses 1,360,739 1,225,594 Number of employees employed during the year expressed in Other 4,252,395 3,817,188 FTEs (calculated according to Heineken International’s definition) 114 112 Total 28,498,167 26,150,974

17. Depreciation and amortization 2018 2017 SRD SRD Depreciation on tangible fixed assets (note 1) 22,061,379 23,464,926 Depreciation on intangible assets (note 2) 819,005 727,359 Total 22,880,384 24,192,285

18. Financial income and expenditure 2018 2017 SRD SRD Interest income 75,513 102,100 Interest expenditure -1,708,076 -1,045,049 Interest expenditure on provision for post-retirement medical benefit plan -1,048,233 -801,099 Net exchange rate (loss)/gain -332,505 -8,064,784 Total -3,013,301 -9,808,832

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 20182018 ANNUALANNUAL REPORTREPORT 52 53

Company balance sheet at 31 December Company income statement (Before proposed profit appropriation)

Assets 2018 2017 2018 2017

Note SRD SRD SRD SRD

Tangible fixed assets 192,866,726 143,970,813 Revenue 127,550,725 86,955,331

Intangible assets 8,151,626 8,970,631

Financial assets 19 95,455,511 98,660,626 Other income 10,542 427,289

Long-term receivable - 63,700

Deferred tax assets 9,499,541 9,537,464 Raw materials, consumables and services -51,235,989 -53,145,715

Total non-current assets 305,973,404 261,203,234 Personnel costs -33,339,255 -27,324,607

Depreciation and amortization -22,069,750 -23,447,310

Inventories 16,924,876 12,787,564 Total expenses -106,644,994 -103,917,632

Securities 1 1 Result from operating activities 20,916,273 -16,535,012

Income tax receivable 6,485,427 6,485,427 Finance expense -8,546,735 -899,197

Receivables 6,761,796 18,307,822 Profit before income tax 12,369,538 -17,434,210

Cash and cash equivalents 15,617,046 38,695,905 Income tax expense -4,453,034 6,276,315

Total current assets 45,789,146 76,276,719 Result after taxes 7,916,504 -11,157,895

Result from shareholdings (after taxes) 74,535,128 77,515,094

Total assets 351,762,550 337,479,953 Net profit 82,451,632 66,357,199

Liabilities 2018 2017

Note SRD SRD

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

Retained earnings 21 76,059,493 62,446,519

Total equity 76,535,993 62,923,019

Provision for deferred tax liabilities 1,275,665 3,016,620

Provision for post-retirement medical benefit plan 8,154,436 6,825,579

Long-Term Incentive Plan liability 1,228,453 1,120,604

Long-term loans 103,200,000 108,000,000

Total non-current liabilities 113,858,554 118,962,803

Short-term debts 161,368,003 155,594,131

Total current liabilities 161,368,003 155,594,131

Total liabilities 351,762,550 337,479,953

SURINAAMSE BROUWERIJ N.V. 2018 ANNUAL REPORT 54 55

19. Financial assets 21. Retained earnings The financial fixed assets relate to the wholly owned sub- The movement in retained earnings is as follows: 2018 2017 sidiaries Parbo Centrale N.V., Premium Beverage Surina- me N.V. and Stichting Super Trans Atlantic. SRD SRD Balance at 1 January 62,446,519 64,447,007 The movement is as follows: Final dividend distribution previous year -33,140,553 -34,951,253 Premium Stichting Interim dividend distribution current financial year -40,026,000 -26,969,900 Parbo Beverage Super Centrale Suriname Trans Net profit for financial year 82,451,632 66,357,199 N.V. N.V. Atlantic Total Statutory dividend -23,847 -23,847 SRD SRD SRD SRD Actuarial results arising from provision for post-retirement Balance at 1 January 2017 55,767,505 5 21,345,259 77,112,769 medical benefit plan

Dividend paid to Surinaamse Brouwerij -55,751,521 - - -55,751,521 Long Term Incentive Plan -725,115 -1,391,309 Result for 2017 77,623,347 - -108,254 77,515,093 Exchange rate differences arising from revaluation of group loans 276,857 98,622 Actuarial losses arising from provision for post-retirement Balance at 31 December 4,800,000 -5,120,000 medical benefit plan Balance at 1 January 76,059,493 62,446,519 Balance at 31 December 2017 -215,715 - - -215,715 77,423,616 5 21,237,005 98,660,626 Balance at 1 January 2018

Dividend paid to Surinaamse Brouwerij 77,423,616 5 21,237,005 98,660,626 Result for 2018 -77,423,448 - - -77,423,448 Actuarial losses arising from provision for post-retirement 74,560,472 - -25,344 74,535,128 medical benefit plan Balance at 31 December 2018

Balance at 1 January 2017 -316,795 - - -316,795 Dividend paid to Surinaamse Brouwerij 74,243,845 5 21,211,611 95,455,511 Premium Beverage Suriname N.V. is a dormant company.

20. Issued and paid-in capital value of SRD 5 and 44 preference shares each with a The authorized share capital amounts to SRD 2,382,500 nominal value of SRD 50. At the end of the financial year and consists of 476,060 ordinary shares with a nominal the following shares were issued and paid in full:

2018 2017 SRD SRD 94,860 ordinary shares, each with a nominal value of SRD 5 474,300 474,300 44 preference shares, each with a nominal value of SRD 50 2,200 2,200 Total 476,500 476,500

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 20182018 ANNUALANNUAL REPORTREPORT 56 57

Other information

Shares the holders of preference shares, or as much less as the Proposed profit appropriation for 2018 The preference shares are registered, the ordinary net profit allows, and then 5% on the paid-in capital on shares are bearer shares or can be registered. ordinary shares is paid to the ordinary shareholders, SRD or as much less as the net profit allows. Anything that Net profit 2018 82,451,632 Authority rights of the meeting of preference then remains of the net profit is at the disposal of the Less: balance of accumulated actuarial results -687,193 shareholders General Meeting of Shareholders. The members of Management are appointed by the Profit for 2018 available 81,764,439 General Meeting of Shareholders based on a binding If the adopted income statement shows that a loss has Less: statutory profit appropriation: nomination of two people for each vacancy; this been suffered in any year that cannot be eradicated On preference shares -132 nomination is made by the meeting of preference from any reserve or offset in another way, no profit shareholders. This procedure also applies for the distribution will take place in subsequent years until this On ordinary shares -23,715 appointment of members of the Supervisory Board. loss has been cleared. Available to the General Meeting of Shareholders 81,740,592

Provisions of the articles of association concerning profit appropriation Out of the net profit, 6% dividend on the paid-in The Management proposes the following distribution of the 2018 net profit which is preference share capital is first paid where possible to available to the shareholders:

SRD

2017 profit appropriation Cash dividend of SRD 8,577 on 44 preference shares with a nominal value of SRD 50 377,388 The General Meeting of Shareholders adopted the 2017 Cash dividend of SRD 857 on 94,860 ordinary shares with a nominal value of SRD 5 81,295,020 financial statements on 20 June 2018 and approved the Addition to retained earnings 68,184 following profit appropriation for 2017: Total 81,740,592

Per aandeel SRD Dividend on preference shares (44 shares with nominal value of SRD 50) 6,307 277,508 With the exception of the 2018 interim dividend which has been paid out, the above proposal concerning the Dividend on ordinary shares (94,860 shares with nominal value of SRD 5) 630.75 59,832,945 profit appropriation has not yet been incorporated in Total 60,110,453 the 2018 financial statements. Statutory dividend (preference: SRD 132; ordinary: SRD 23,715) 23,847 Addition to retained earnings 16,731 Net profit 2017 60,151,031

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 20182018 ANNUALANNUAL REPORTREPORT 58 59

Independent auditor’s report

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

Report on the 2018 financial statements included in (VGBA) (Regulation on the Code of Conduct and the annual report Professional Rules for Accountants).

Our opinion We believe that the audit information obtained by us is We have audited the 2018 financial statements sufficient and suitable to form the basis for our opinion. of Surinaamse Brouwerij N.V. (“the company”) in Paramaribo included in this report on pages 32 to 55. Report on the other information included in the annual report In our opinion the financial statements give a true Alongside the financial statements and our picture of the size and composition of the company’s accompanying auditor’s report, the annual report also assets at 31 December 2018 and of the result and contains other information consisting of: the cash flows for 2018 in accordance with generally - the report from Management; Independent auditor’s report accepted accounting policies. - the other information. The financial statements consist of: On the basis of the activities described below we 1. the consolidated and company balance sheet at believe that the other information is compatible with 31 December 2018; the financial statements and contains no significant 2. the following summaries for 2018: the consolidated deviations. and company income statement, the consolidated summary of changes in equity and the consolidated We have read the other information and have assessed cash flow statement; and whether the other information contains significant 3. the notes with a summary of the adopted deviations on the basis of our knowledge and accounting policies and other explanatory understanding obtained from the audit of the financial information. statements or otherwise. With our work we have complied with the requirements The basis for our opinion of audit standard 720. We have conducted our audit in accordance with the This work is not as thorough as our audit work. audit standards issued by our professional organization. Our responsibilities under these standards are described in the section ‘Our responsibilities for the audit of the financial statements’.

We are independent of Surinaamse Brouwerij N.V. as required by the Verordening inzake de Onafhankelijkheid van accountants bij assurance- opdrachten (ViO) (Regulation concerning the Independence of accountants in audit assignments) and other independence regulations relevant to the assignment. We have also complied with the Verordening Gedrags- en Beroepsregels Accountants

SURINAAMSE BROUWERIJ N.V. 2018 ANNUAL REPORT 60 61

Description of responsibilities with regard to the the nature, timing and scope of our audit work and the continue as a going concern; financial statements evaluation of the impact of identified deviations on our - evaluating the presentation, structure and content opinion. of the financial statements and the accompanying Responsibilities of the Management and the disclosures; and Supervisory Board for the financial statements We have performed this audit with professional - evaluating whether the financial statements give Management is responsible for the preparation and fair skepticism, and have applied professional judgement a true picture of the underlying presentation of the financial statements in accordance where relevant in accordance with our professional transactions and events. with generally accepted accounting policies. In this organization’s audit standards, ethical regulations and regard Management is responsible for such internal the requirements of independence. Our audit included: In view of our ultimate responsibility for the opinion, we control as Management deems necessary in order to - identifying and assessing the risks that the financial are responsible for directing, supervising and executing make it possible to prepare the financial statements statements contain significant deviations as a the group audit. In this regard we have determined the without significant deviations as a result of errors or result of errors or fraud, designing and executing nature and scope of the work to be performed for the fraud. audit work in response to these risks, and obtaining group entities. This has been determined by the size audit information which is sufficient and suitable and/or risk profile of the group entities or the activities. In preparing the financial statements Management as a basis for our opinion. The risk that a significant On the basis of this we have selected the group entities must assess whether the company is able to deviation is not discovered is greater with fraud where an audit or assessment of the full financial continue its activities as a going concern. Under the than with errors. Fraud can involve conspiracy, information or specific items was necessary. aforementioned reporting system Management must forgery, the intentional failure to record prepare the financial statements on a going concern transactions, intentional misrepresentation or We have communicated with the persons charged with basis, unless Management intends to liquidate the breaches of the internal control; governance about - amongst other things - the planned company or terminate the business activities, or has - gaining insight into the internal control that is scope and timing of the audit and about the significant no realistic alternative to doing so. Management must relevant for the audit with the aim of selecting the findings arising from our audit, including any significant disclose events and circumstances which could give audit work which is appropriate to the shortcomings in the internal control. justified doubt about the company’s ability to continue circumstances. This work is not designed to its business activities as a going concern in the financial express an opinion on the effectiveness of the Paramaribo, 14 May 2019 statements. entity’s internal controls; - evaluating the suitability of the adopted accounting The Supervisory Board is responsible for overseeing the policies and evaluating the reasonableness Lutchman & Co N.V. company’s process of financial reporting. of estimates made by the Management and the clarification concerning these contained in the On their behalf, Our responsibilities in auditing the financial financial statements; signed by Drs. M.R.A. Lutchman RA statements - establishing that the going concern basis adopted Our responsibility is to plan and execute an audit by the Management is acceptable. Also establishing assignment in such a way that we thereby obtain on the basis of the obtained audit information sufficient and suitable audit information for our whether there are events and circumstances which opinion. could give justified doubt about the company’s ability to continue its Our audit has been carried out with a high degree but business activities as a going concern. not absolute degree of certainty, as a result of which it If we conclude that there is a significant is possible that we have not uncovered all significant uncertainty, we are obliged to draw attention in our errors and fraud during our audit. audit report to the relevant related disclosures in the financial statements. If the disclosures Deviations can occur as a result of fraud or errors are inadequate, we must modify our opinion. Our and are significant if it can reasonably be expected conclusions are based on the audit information that they could, separately or jointly, influence the which was obtained up to the date of our auditor’s economic decisions which users make on the basis of report. However, future events or circumstances these financial statements. The significance influences could result in a company no longer being able to

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 20182018 ANNUALANNUAL REPORTREPORT 62 63

Reference information

This annual report is published by 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 Ed Weggemans

Final editing Kraag Corporate Communications N.V.

Editing Margarita van der Zwart Faziya Arjun - Fattoe

Layout and design Birdy Communicatie BV, Nederland

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

Printing Multiforms N.V., Paramaribo, Suriname

SURINAAMSESURINAAMSE BROUWERIJBROUWERIJ N.V.N.V. 20182018 ANNUALANNUAL REPORTREPORT 64

2018 ANNUAL REPORT

SURINAAMSE BROUWERIJ N.V. 2018 ANNUAL REPORT