Engen Botswana : ANNUAL CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

ENGEN BOTSWANA LIMITED Annual Consolidated Financial Statements

For the Year Ended

31 December 2021

DIRECTORS' REPORT

Nature of business

The core business of the group is petrochemical investments and property operations.

There have been no material changes to the nature of the group's business from the prior year.

Review of activities

The annual financial statements have been prepared in accordance with International Financial Reporting Standards and the requirements of the Companies Act of Botswana. The accounting policies have been applied consistently compared to the prior year.

Full details of the financial position, results of operations and cash flows of the company are set out in these annual financial statements.

Financial Results

Revenue increased by 16% mainly due to increased volumes sold mainly due to the removal of several Covid-19 regulations on 1 October 2021. There were four price adjustments and an industry margin adjustment was effected in October 2021 for price controlled products. Non price controlled products had market related price adjustments.

Foreign exchange gains decreased from P7.7 million at the end of 2020 to P2.5 million at the end of 2021. The group exercised good margin management and cost control throughout the year.

Overall, the group's performance reflects a 166% increase in net profit after tax.

Going concern

The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern.

This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

Stated capital

There were no changes to the stated capital during the year under review.

Directors

Mr B F Sameke was appointed to the Board on 1 November 2021. There were no other changes to directors during the year.

Company Secretary

PricewaterhouseCoopers (Pty) Ltd resigned as the company secretary on 30 November 2021. Grant Thornton Business Services (Pty) Ltd were appointed as the company secretary on 1 December 2021.

Dividends

Dividends amounting to P163 276 039 (2020: P165 472 220) were paid during the year.

Events after the reporting period

A final dividend of 63.7 thebe per share was declared on 15 March 2022.The directors are not aware of any other material event which occurred after the reporting date and up to the date of the approval of the annual financial statements.

Conclusion

The Directors would like to thank our valued customers, suppliers, shareholders, management and staff and all other stakeholders for their ongoing support towards the performance of Engen Botswana Limited.

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021

Group

CompanyNotes

2021 P'000

2020 P'000

2021 P'000

2020 P'000

Revenue

Cost of goods sold Gross profit

2

2 723 001 (2 265 405)

2 344 081 (2 110 949)

457 596

233 132

179 146 - 179 146

178 997 - 178 997

Other operating income Foreign currency gains/(losses) Administrative expenses Distribution and marketing expenses Other operating expenses

Share of profit of joint ventures Finance income

Finance costs Profit before tax Taxation

Profit for the year

Profit for the year attributable to equity holders of the parent

3.1 3.5

(20 580)

185

2 518

(80 614)

(2 969)

8

(21 905)

• 3 505

• 7 736

(75 835)

(3 533)

• 1 044

  3.3

  (2 969)

  2 000

  (1)

  - -

  4 097

• 7 463

3.4

6 045 - - - (3 533)

3

(9 798)

354 845

4

10 190

(10 175)

147 212

(93 945)

-

454 -

178 630

(49 203)

260 900

260 900

• 98 009

  (16 596)

• 98 009

  162 034 162 034

  - 733 - 182 242 (14 261) 167 981 167 981

  Other comprehensive income for the current year

  Total comprehensive income for the year

  Total comprehensive income for the year attributable to equity holders of the parent

  Earnings per share (thebe)

  Basic earnings, profit for the year attributable to ordinary equity holders of the parent

  Diluted earnings, profit for the year attributable to ordinary equity holders of the parent

  -

  260 900

  260 900

  -

• 98 009

98 009

5 5

163.3 61.4

163.3 61.4

- 162 034

162 034

- 167 981

167 981

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2021

Group
Dec 2021	Dec 2020	Dec 2021	Dec 2020
Notes	P'000	P'000	P'000	P'000
ASSETS
Non-Current Assets
Property, plant and equipment	7	351 468	310 129	976	1 016
Right of use of assets	21	78 232	81 984	-	-
Investments in joint ventures	8	40 992	41 948	4 524	4 524
Investments	9	37	37	10	10
Investments in subsidiaries	10	-	-	72 209	72 209
470 729	434 098	77 719	77 759
Current Assets
Inventories	11	38 075	10 682	-	-
Trade and other receivables	12	442 616	104 336	26	-
Tax receivable	4	3 528	-	683	416
Forward exchange contract asset	20	224	861	-	-
Cash and cash equivalents	13	294 163	390 886	29 998	32 432
778 606	506 765	30 707	32 848
TOTAL ASSETS	1 249 335	940 863	108 426	110 607
EQUITY AND LIABILITIES
Equity
Stated capital	14	8 138	8 138	8 138	8 138
Non distributable reserves	2 200	2 200	344	344
Retained earnings	668 702	571 078	98 317	99 559
Total equity	679 040	581 416	106 799	108 041
Non-Current Liabilities
Deferred tax liabilities	4	4 134	4 622	17	19
Lease liabilities	21	79 472	77 628	-	-
Provisions	15	87 482	57 187	-	-
171 088	139 437	17	19
Current Liabilities
Trade and other payables	16	393 878	210 737	1 610	2 547
Tax payable	4	-	2 548	-	-
Lease liabilities	21	4 245	6 618	-	-
Forward exchange contract liability	20	1 084	107	-	-
399 207	220 010	1 610	2 547
Total Liabilities	570 295	359 447	1 627	2 566
TOTAL EQUITY AND LIABILITIES	1 249 335	940 863	108 426	110 607
4

Company