West Indian Tobacco : 17 Mar 2023 – The West Indian Tobacco Company Limited – Audited Financial Statements for the year ended December 31st, 2022 (Summary)

AUDITED SUMMARY FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

INDEPENDENT AUDITORS' REPORT ON THE SUMMARY FINANCIAL STATEMENTS

To the Shareholders of The West Indian Tobacco Company Limited

Opinion

The summary financial statements, which comprise the summary statement of financial position as at December 31, 2022, the summary statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and related notes, are derived from the audited financial statements of West Indian Tobacco Company Limited ("the Company") for the year ended December 31, 2022.

In our opinion, the accompanying summary financial statements are consistent, in all material respects, with the audited financial statements, in accordance with International Financial Reporting Standards (IFRS).

Summary Financial Statements

The summary financial statements do not contain all the disclosures required by the International Financial Reporting Standards. Reading the summary financial statements and our report thereon, therefore, is not a substitute for reading the audited financial statements and our report thereon. The summary financial statements and the audited financial statements do not reflect the effects of events that occurred subsequent to that date of our report on the audited financial statements.

Management's Responsibility for the Summary Financial Statements

Management is responsible for the preparation of the summary financial statements in accordance with IFRS and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on whether the summary financial statements are consistent, in all material respects, with the audited financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810 (Revised), "Engagements to Report on Summary Financial Statements."

The Audited Financial Statements and Our Report

Thereon

We expressed an unmodified audit opinion on the audited financial statements in our report dated March 14, 2023. That KPMG

report also includes the communication of key audit matters. Chartered Accountants Savannah East

Key audit matters are those matters that in our professional	11 Queen's Park East
judgement, were of most significance in our audit of the	March 14, 2023
financial statements for the current period.

AUDITED SUMMARY FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

CHAIRMAN'S REVIEW

In a year of varied internal and external challenges, West Indian Tobacco has recorded Profit Before Taxation of $379 million (2021: $537 million) and Profit for the Year at $262 million (2021: $379 million). Total Comprehensive Income for the Year of $251 million was negatively impacted by an actuarial loss following the re-measurement of retirement and post-employment benefit obligations.

The business environment continued to present changes in consumption patterns, which, coupled with the issue of the increased presence of suspected illicit products, has adversely impacted revenue. The Company remains a net earner of foreign exchange by virtue of its activity in foreign markets. We will continue to expand our product offering to widen the options available to our customers and build the Lucky Strike family.

Directors will recommend to shareholders, a final dividend payment of $0.26 per share at the Annual General Meeting on Tuesday 25th April 2023. When added to the interim dividends of $0.72, this would result in a total dividend of $0.98 per share for 2022. The dividend yield is 4.5%.

If approved, the final dividend will be paid on 25 May 2023 to shareholders of record at close of business on 08 May 2023. The Register of Shareholders will be closed on 09 and 10 May 2023 for the processing of transfers.

Ingrid Lashley

Chairman

14 March 2023

SUMMARY STATEMENT OF FINANCIAL POSITION

SUMMARY STATEMENT OF COMPREHENSIVE INCOME

	UNAUDITED	UNAUDITED	AUDITED	AUDITED
	Three Months	Three Months	Year	Year
			Ended	Ended	Ended	Ended
	31.12.22	31.12.21	31.12.22	31.12.21
			TT$'000	TT$'000	TT$'000	TT$'000
Revenue	175,190	241,772	724,090	852,251
Cost of sales	(67,187)	(59,807)	(226,290)	(207,461)
Gross profit		108,003	181,965	497,800	644,790
Distribution costs	(8,992)	(3,193)	(14,653)	(9,931)
Administrative expenses	(21,617)	(20,334)	(72,516)	(73,629)
Other operating expenses		(3,967)	(4,043)	(32,671)	(23,838)
Operating profit	73,427	154,395	377,960	537,392
Finance income	776	22	1,277	116
Finance cost	(123)	(146)	(254)	(296)
Profit before taxation		74,080	154,271	378,983	537,212
Taxation	(21,050)	(45,466)	(117,403)	(158,183)
Profit for the year		53,030	108,805	261,580	379,029
Other comprehensive income:
Items that will not be reclassified
to profit or loss
Re-measurement of retirement and
post-employment benefit obligations	(806)	13,400	(15,029)	13,305
Related Tax	242	(4,019)	4,509	(3,991)
Other comprehensive
income - net of tax	(564)	9,381	(10,520)	9,314
Total comprehensive
income for the year	52,466	118,186	251,060	388,343
Earnings per ordinary share	$0.21	$0.43	$1.04	$1.50
Dividends per ordinary share	$0.20	$0.41	$0.98	$1.42

SUMMARY STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

ASSETS

Non-current assets

Property, plant and equipment

Deferred income tax asset

Retirement benefit asset

Current assets

Inventories

Trade and other receivables

Taxation recoverable

Cash and cash equivalents

Total assets

EQUITY

Share capital

Revaluation surplus

Retained earnings

Total equity

LIABILITIES

Non-current liabilities Deferred income tax liability Retirement benefit obligation

Post-employment medical benefit obligation Lease liabilities

Current liabilities

Trade and other payables

Due to parent company

Dividends payable

Lease liabilities

Total liabilities

Total equity and liabilities

AUDITED AUDITED 31.12.22 31.12.21

TT$'000 TT$'000

283,503 264,337

9,017 466

• 3,344
  292,520 268,147

85,298 50,643

124,277 126,877

4,969 4,917

276,372 368,496

490,916 550,933

783,436 819,080

42,120 42,120

57,986 58,936

352,113 499,283

452,219 600,339

41,726 43,708

5,969-

4,867 5,028

3,986 535

56,548 49,271

124,701 123,547

100,854 2,023

47,617 43,360

1,497 540

274,669 169,470

331,217 218,741

783,436 819,080

			Share	Revaluation	Retained	Shareholders'
	Capital	Surplus	Earnings	Equity
Audited Year Ended	TT$'000	TT$'000	TT$'000	TT$'000
31 December 2022
Balance at 1 January 2022	42,120	58,936	499,283	600,339
Comprehensive income
Profit for the year	-	-	261,580	261,580
Other comprehensive income
Re-measurement of retirement and
post-employment benefit
obligations - net of tax	-	-	(10,520)	(10,520)
Depreciation transfer on buildings
- net of tax	-	(950)	950	-
Transactions with owners
Dividends	-	-	(399,180)	(399,180)
Balance at 31 December 2022		42,120	57,986	352,113	452,219
Audited Year ended
31 December 2021
Balance at 1 January 2021	42,120	59,886	475,456	577,462
Comprehensive income
Profit for the year	-	-	379,029	379,029
Other comprehensive income
Re-measurement of retirement and
post-employment benefit
obligations - net of tax	-	-	9,314	9,314
Depreciation transfer on buildings
- net of tax	-	(950)	950	-
Transactions with owners
Dividends	-	-	(365,466)	(365,466)
Balance at 31 December 2021			42,120	58,936	499,283	600,339

Ingrid Lashley	Raoul Glynn
Chairman	Managing Director

AUDITED SUMMARY FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

SUMMARY STATEMENT OF CASH FLOWS

					AUDITED	AUDITED
					Year	Year
					Ended	Ended
					31.12.22	31.12.21
					TT$'000	TT$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation	378,983	537,212
Adjustments for:
Depreciation	14,388	14,968
Loss on disposal of property, plant and equipment	89	30
Net decrease in retirement and other post-employment
benefit obligations excluding actuarial losses	(5,877)	(9,146)
Interest income	(1,277)	(116)
Interest expense	254	296
Operating profit before working capital changes		386,560	543,244
Changes in working capital:
Increase in inventories	(34,655)	(3,727)
Decrease/(increase) in trade and other receivables	2,600	(76,059)
Increase in trade and other payables	678	11,378
Increase/(decrease) in due to parent company	98,831	(5,325)
Cash generated from operating activities		454,014	469,511
Interest paid	(254)	(296)
Taxation paid	(117,766)	(156,028)
Net cash from operating activities			335,994	313,187
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(33,643)	(29,572)
Interest received	1,277	116
Net cash used in investing activities	(32,366)	(29,456)
CASH FLOWS USED IN FINANCING ACTIVITIES
Dividends paid	(394,920)	(362,752)
Lease payments	(832)	(404)
Net cash used in financing activities	(395,752)	(363,156)
Net decrease in cash and cash equivalents			(92,124)	(79,425)
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR	368,496	447,921
CASH AND CASH EQUIVALENTS
AT END OF YEAR	276,372	368,496
Represented by:
Cash at bank and in hand	276,372	368,496
					276,372	368,496

Note 4: Segment Information

Primary reporting format - geographical segment

		Domestic	CARICOM	Unallocated	Total
				& Non-
				CARICOM
Year ended 31 December 2022		TT$'000	TT$'000	TT$'000	TT$'000
Revenue	590,330	133,760	-	724,090
Gross Profit	472,890	24,910	-	497,800
Profit for the year includes:
- Depreciation	-	-	(14,388)	(14,388)
Year ended 31 December 2021
Revenue	748,482	103,769	-	852,251
Gross Profit	630,484	14,306	-	644,790
Profit for the year includes:
- Depreciation		-	-	(14,968)	(14,968)
Total Segment assets
31 December 2022	131,910	77,665	573,861	783,436
31 December 2021	135,709	41,811	641,560	819,080
Total segment assets include
additions to property,
plant and equipment as follows:
31 December 2022	-	-	33,643	33,643
31 December 2021	-	-	29,572	29,572

The Company is organised and managed on the basis of two geographic regions, namely the Domestic market and the CARICOM market. During 2022, the Company was also contracted as a contingent supplier to a Non-CARICOM market. The Non-CARICOM market was included with the CARICOM market. These are the reportable segments for the Company as they form the focus of the Company's internal reporting systems and are the basis used by the Managing Director and the local management team, as the chief operating decision makers, for assessing performance and allocating resources.

The Company is a single product business providing cigarettes. While the Company has clearly differentiated brands, segmentation among a wide portfolio of brands is not part of the regular internally reported financial information.

Primary reporting format - geographical segment

With the exception of the Domestic market, no other individual country within the CARICOM market contributes more than 10% of total revenue. Information is analysed by segment only where relevant and applicable. Where there is no logical allocation basis, items have been disclosed as unallocated. All the Company's non-current assets are located in Trinidad and Tobago. Revenues from two customers of the Company's Domestic segment represented approximately $587,013,776 (2021: $748,000,000) of the Company's total revenues. This consists of a 50% split between the two companies.

NOTES TO THE SUMMARY INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Note 1: General Information

The West Indian Tobacco Company Limited is incorporated in the Republic of Trinidad and Tobago. The Company is listed on the Trinidad and Tobago Stock Exchange. The address of the registered office is Corner Eastern Main Road and Mount D'Or Road, Champs Fleurs, Trinidad, West Indies. It is a subsidiary of British American Tobacco (Investments) Limited, a company registered in the United Kingdom. Its ultimate parent company is British American Tobacco p.l.c., a company registered in the United Kingdom.

The principal business activities of the Company are the manufacture and sale of cigarettes.

This summary financial information was approved for issue on March 14, 2023.

Note 2: Basis of Preparation

This summary financial information for the year ended 31 December 2022, has been prepared in accordance with International Accounting Standard 34 (IAS34), 'Interim Financial Reporting' as well as the requirements of the Securities Act 2012 which goes beyond IAS 34. The summary interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2022, which have been prepared in accordance with International Financial Reporting Standards (IFRS).

Note 3: Significant Accounting Policies
These financial statements have been prepared under	the	historical	cost
convention, as	modified	by the	revaluation	of land	and	buildings	and
in	accordance	with	International	Financial	Reporting	Standards	(IFRS).

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2022, as described in those annual financial statements, with the exception of taxes on income in the interim periods, are accrued using the tax rate that would be applicable to expected total annual earnings.

Note 5: Related Party Transactions

Sale of goods and services:

Sale of goods - related parties

Recharge of services - related parties

Purchase of goods and services:

Purchase of goods - related parties

Purchase of services - related parties

Purchase of services - parent company

Year end balances arising from sales/purchases of goods and services:

Receivables from related parties

Payables to related parties

Payables to parent company

Key management compensation

Salaries and other short-term employee benefits Post-retirement medical obligations Post-retirement benefits

Note 6: Capital Commitments

Authorised and contracted for, and not provided for in the financial statements

Note 7: Contingent Liabilities

Customs & immigration bonds

Note 8: Dividends Paid On Ordinary Shares Final dividend - prior year

Second interim dividend

Third interim dividend

31.12.22 31.12.21

TT$'000 TT$'000

133,760	103,769
23,817	22,470
70,598	45,040
32,934	40,638
37,879	37,720
29,866	26,437
38,194	20,362
100,854	2,023
8,543	7,010
5	3
368	185
7,032	15,012
24,930	22,930
217,221	192,067
98,561	98,561
83,398	74,838
399,180	365,466

The Full Audited Financial Statements will be made available in the

2022 Annual Report, which will be available for viewing or downloading at

www.westindiantobacco.com from 03 April 2023.

A final dividend in respect of 2022 of $0.26 cents per share (2021: $0.70 cents per share) amounting

to $65,707,000 (2021: $176,904,000) is to be proposed at the Annual General Meeting to be held on April 25, 2023. If approved, the total dividend for the year will be $0.98, 31% lower than the dividend distribution of $1.42 with respect to 2021.