INTERNATIONAL BREWERIES PLC

Presentation to the Third Annual

FCMB/CSL Stockbrokers

Investor Conference 2011 -

27 September 2011

1

Michael O. Daramola

Managing Director

• IB PLC - Background History

• The Complete Rehabilitation/Renovation of the Brewery

• The Combined Effects

• Annual Sales Volumes/Turnover Achieved

• Staffing: Commitment and Contribution

• SWOT Overview, Including Risks and Mitigating Factors

• New Code of Corporate Governance

• Current Areas of Coverage and Products

• Trend of IB share price

• Looking Ahead

2

OUTLINE OF PRESENTATION

International Breweries Limited was incorporated in 1971 in Ilesa

(in the then South West Region now in Osun State)

• December 1978: Commenced operations

• Year 1994: Goes public – International Breweries Plc – and lists on the NSE

• Year 2001: Paid-up Capital increased by 212.9 million shares

• Year 2007: Paid-up Capital increased by a further 1,600 million shares – total shares issued = 2,112,914,681

• Years 1998-2006: the dark years where volumes fell steadily from in excess of 350,000 hls annually to bottom out at some 37,000hls in 2006 with a plethora of staff (40%) doing nothing and salaries six months in arrears

• 2007-2008: The beginning of the recovery. Funds from the 2007 share issue used primarily to lay off excess staff and improve cooling and steam generation

• September 2008: Privately owned German brewing company WarsteinerInternational sells its majority interest in IB to the Castel Group

3

IB PLC - BACKGROUND HISTORY - 1

Replacement of equipment (bottling line, cooling, CO² recovery, steamand power generation, grains storage, handling and milling, brew house,water treatment, laboratory, etc.)

Addition of state-of-the-art canning line and high gravity brewing

Supplementary water supply from boreholes drilled nearby

Renovation of factory and office buildings and all other facilities

Substantial investment in information and communications technology(both hard- and software), satellite connectivity andtelecommunications

Complete refurbishment of senior management staff accommodation

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IB PLC - BACKGROUND HISTORY - 2

Years 2009 to date: Complete rehabilitation/renovation of the brewery to

increase capacity to around 70,000 hls/month. To date therefore, the

company has achieved:

With more to come………………

Greater efficiencies in manufacturing processes and products, with the resultant reduction in water consumption, waste, rejects, down-time etc.

State-of-the-art canning line allowing co-packing opportunities to optimise usage

Phased introduction into the market of new world-class products and brands at highly competitive prices

Much improved turnover and returning profitability

Better revenue generation to various tiers of government through the payment of various taxes, duties, levies etc.

Abundant opportunities for value-addition to the lives of the wider community through employment-generation and business prospects for suppliers, contractors, transporters, clearing agents, distributors, restaurants etc.

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THE COMBINED EFFECTS - 1

As a result, IB Plc now has:

greatly improved product quality

an expanded and more experienced sales force

new and highly experienced personnel in all key technical areas to meet the previous skills-deficiencies in the company and the challenges of the new equipment

a shrewd leveraging of the skills and professionalism being acquired to position the company’s health and safety strategy in the sustainable achievement of an environment free of injury and occupational illness;

a well-phased marketing programme for the introduction of a credible product range

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THE COMBINED EFFECTS - 2

Volumes (Hls) Turnover (N000’s)

• 2007 60,000 561,669

• 2008 83,500 + 39% vs 2007 931,921 + 66% vs 2007

• 2009 132,500 + 59% vs 2008 1,616,503 + 74% vs 2008

• 2010 364,000 +175% vs 2009 4,794,946 + 197% vs 2009

• 2011 Forecast 650,000 + 65% vs 2010 10,906,843 + 128% vs 2010

plus Co-packing 145,000 (Nil in 2010)

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ANNUAL SALES VOLUMES/TURNOVER ACHIEVED

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STAFFING: COMMITMENT AND CONTRIBUTION

The successful completion of the very intense investment programme

and subsequent production, sales and marketing efforts could not

have been possible without the huge commitment and sacrifice of the

Managers and Staff

• Since January 2010, a very substantial investment has been made in new staff to bring in much needed expertise in all areas and at all levels of our operations;

• The permanent staff complement has grown by about 100% over the past 21 months, thus enabling us to achieve the huge production and sales volume increases reported above;

• Depth in Management: Senior Management, including Department Heads and other key managerial positions, has been greatly strengthened through both promotion and selected recruitment of appropriate expertise from within our business sector;

• The great need to build capacity at the lower cadre levels in order to strengthen the company’s ability to both build its store of human resources for the future and offer appropriate career paths to younger employees, is also being actively addressed;

• Efforts to strengthen our human resource management are well in hand and will include further revising and improving of our staff policies and recruitment procedures and greatly broadening the number and scope of our training and professional development programmes at all levels.

SWOT ANALYSIS

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STRENGTHS

Potential demand with large population

Fast population growth: 2.8%

GDP per capita: 1,141 USD, expected growth to hit 1839 USD in 2015

Economic growth

IBPLC: brew capacity increase, quality products, affordable price

WEAKNESSES

Training Sales Force

Pricing disciplines

Marketing Way: timely delivery, trade infrastructures, re-distribution van, advertising, event

OPPORTUNITIES

Low beer per capita consumption

Economy growth

Population growth: 2.8%

Youthful population: 56% from 15 years

Human resource recruitment and training

THREATS

Aggressive competitive market

Dubious acts by competitors: discrediting rumours

Insecurity

Social tension

Company Specific Risk

• International Breweries Plc incurred losses over a number of years and the shareholders’ fund has been completely eroded. The external auditors have invariably reported that the company’s continued existence depends on the continued support of its technical partners and bankers.

Mitigating factors

• The shareholders have recognized the importance of injecting additional funds into the brewery to reduce its debt burden and enhance its financial capacity of the company.

• Furthermore, the substantially improved volumes recorded over the latter months of 2010 and which have continued throughout the months of 2011 to date, have alleviated the company’s reliance on local funding.

Sector Risk

• The Company faces stiff competition from the dominant breweries in Nigeria; Heineken (Nigerian Breweries Plc, Consolidated and Sona Breweries) and Diageo (Guinness Nigeria Plc), which together control about 87% of beer market share. The estimated balance of 13% is fragmented amongst all the other brewers.

• International Breweries is moving to take the lion’s share, but with each entity maintaining significant market share in its immediate locality.

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RISKS AND MITIGATING FACTORS - 1

Mitigating factor

• IB enjoys good patronage of its products in the South Western part of the country but at present it is unable to satisfy local demand. Hence it is planned that with increased production capabilities, the brewery’s products would be available in sufficient quantities in all of the South Western part of the country with the possibility of extending its influence to the South, the South-East and, to a lesser extent, the North.

Political Risk

• Changes in regulatory policies and unforeseen political crises could have adverse effects on economic development and stability in the country, which could restrict or slow down foreign direct investment. A stable political climate is thus essential for business growth.

Mitigating factor

• With the successful handover of government to a newly elected civilian administration through an internationally acclaimed free and fair election, there is a growing confidence in the Nigerian economy by the international community. This is evidenced by the increased level of interest in the country’s economy demonstrated by international investors.

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RISKS AND MITIGATING FACTORS - 2

Currency Risk

• Foreign Investors may run the risk of incurring losses that may be caused by exchange rate fluctuation.

Mitigating factor

• In the light of Nigeria’s growing foreign reserves, the Central Bank of Nigeria has embarked on measures to stabilize and strengthen the Naira. These efforts, if sustained, will not only reduce the risk of foreign investments, but will make Naira investments stronger than investments held in other currencies.

Environmental Risk

• Being a manufacturing company, International Breweries Plc poses some risk to its environment in the form of by-products, industrial waste and effluent discharge.

Mitigating factor

• Some of our industrial by-products and wastes generated constitute raw materials for certain agro-allied companies; such wastes are collected by feed millers and farmers for preparation of livestock feeds and other uses, thus avoiding dumping of such wastes in the environment. The Company also complies with the environmental standards prescribed by the Federal Environmental Protection Agency, the Standards Organisation of Nigeria and the National Agency for Food, Drug Administration and Control.

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RISKS AND MITIGATING FACTORS - 3

Risk Management –

Management :

• is accountable to the Board for implementing and monitoring the process of risk management and integrating it into the day-to-day activities of the company;

• oversees the establishment of a management framework that defines the company’s risk policy, risk appetite and risk limits;

• ensures that the risk management framework is integrated into the day-to-day operations of the business and provides guidelines and standards for administering the acceptance and on-going management of key risks such as operational, reputational, financial, market, technology and compliance risks;

• undertakes at least annually, a thorough risk assessment covering all aspects of the company’s business.

• ensures that the company’s risk management policies and practices are disclosed in the Annual Report.

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NEW CODE OF CORPORATE GOVERNANCE –EFFECTIVE 1 APRIL 2011

Management, the Board of Directors and the Audit Committee are fully cognizant of the requirements of the new Code

Accountability and Reporting

• The Board of a public company should ensure that the company’s annual report includes a corporate governance report that conveys to stakeholders clear information on the strength of the company’s governance structures, policies and practices.

• The annual report should contain a statement from the Board with regards to the company’s degree of compliance with the provisions of this Code.

Internal Audit Function

• internal audit plan to be based on the results of the assessment of the risks faced by the company in line with the risk management framework and approved by the Board.

• an external assessment of the effectiveness of the internal audit function at least once every three years by a qualified independent reviewer, as defined by the Institute of Internal Auditors, or by an external review team.

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KEY FEATURES OF NEW CODE OF CORPORATE GOVERNANCE –EFFECTIVE 1 APRIL 2011

The Audit Committee

Whistle-blowing Policy

Rotation of External Auditors

Communications Policy

Code of Ethics

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OTHER IMPORTANT FACETS OF THE NEW CODE OF CORPORATE GOVERNANCE

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South-WestSouth-East

Lagos

North-East

South –South

North

West & Central

CURRENT AREAS OF COVERAGE

IB PLC PRESENCE 92% of volume contribution

Recent prospection and penetration

0%

5%

10%

15%

20%

25%

30%

South South

South East

South West

Lagos North East

North West

North Central

28%

15%

23%

7% 6%9%

12%

Nigeria Beer Market

REGIONAL CONTRIBUTION – IBPLC volume

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South West92%

North4%

South South4%

Volume contribution by region

EVOLUTION OF BRANDS PORTFOLIO

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Since 1979 2010 2011

Castel new label – licensed from

Castel – 4% on net ex-factory price

Trophy

(Lager )

Kronenbourg

(Lager)Wilfort

(Dark Ale)

Products group

Castel

(Lager)

Licensed products

Betamalt

(Malt)

Background / Situation: Kronenbourg and Wilfort were previously produced and sold by a competitor until thewithdrawal of the franchise in July 2009. Sona launched a campaign of change of the name of the previous brands toGoldberg & Williams with a view to preserving its consumers and market share. IBPLC re-introduced Kronenbourg andWilfort to the market in April – May 2010.

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Premium

Mid

dle

ran

ge

Economy

IBPLC Competitors

Heineken

60cl

Guinness

60cl

Saltzenbrau

HaroStar

Gulder

33 ExportGoldberg

Legend

Williams

ArmastrongTurbo Kinjg

Castel

60cl

Wilfort

60CL

Kronenbourg

60CL

Trophy

62CLBetamalt

33CL

Malt

SEGMENTATION & COMPETITIVE FIELD

CURRENT CAMPAIGN OF CASTEL

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CURRENT CAMPAIGN OF TROPHY

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CURRENT CAMPAIGN OF BETAMALT

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Van Branding Option 1

CURRENT CAMPAIGN OF BETAMALT

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Glass Cover Serving Tray

As can be seen from the foregoing, the Company is now well placed to meet the challenges of increasing its market share of what continues to be a vibrant and expanding industry.

The shareholders of IBPLC have recognized the importance of injecting additional capital into the company to enhance its financial capacity by way of Rights Issue.

Management is committed to sustaining the Company’s growth and enhancing its profitability.

Management will continue striving to building a creative distribution network that will serve as a platform for further growth and profitability.

The current capacity constraints (silo, brew house and cellar storage) are already being addressed to become operational during 2012, together with investment in a second bottling line and other features to improve capacity. These initiatives are scheduled to come on stream in 2013, thus increasing capacity to about 1,600,000 hectoliters.

The Board and Management are committed to a continuing programme of capacity-building that is results-oriented; one which embraces professionalism and excellence in all aspects of its operations.

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LOOKING AHEAD

Projected Volumes (Hls)* Projected Turnover (N000’s)

• 2012 1,100,500* 15,673,502

• 2013 1,223,500** 26,826,716

*Including co-packing

**Co-packing ceases end-2012

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LOOKING AHEAD

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International Breweries Monthly Price Movement Chart: September 30, 2007 – September 16, 2011

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Sept. 07Nov. 07Jan. 08Mar. 08May. 08Jul. 08Sept. 08Nov. 08Jan. 09Mar. 09May. 09Jul. 09Sept. 09Nov. 09Jan. 10Mar. 10May. 10Jul. 10Sept. 10Nov. 10Jan. 11Mar. 11May. 11Jul. 11Sept. 16, 11

Axi

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tle

Axis Title

Series1

Price

Month

Keynotes:The x-axis depicts the price range of International Breweries PlcThe y-axis depicts the monthly price movement

THANK YOU!27

Our overall objective is:

to run a company with sustainable growth

and enhanced returns;

to encourage investors’ interest and retain

their confidence; and

to continually revitalise and expand our

customer base so that an ever-increasing

number of consumers may enjoy the unique

tasting experience offered by the products of

International Breweries Plc.

The future is IBPLC!