My fellow shareholders, it is with pleasure that I present my report on the performance of the Banks DIH Ltd Group for the period ended 30 September 2018. The Group’s third party revenue was $30.923 billion when compared with $30.006 billion in 2017, representing an increase of $917.0 million or 3%. The Trading Profit from Operations for the Group was $6.837 billion when compared with $6.196 billion achieved in 2017, representing an increase of $641.0 million or 10%.

Profit after Tax attributable to the Shareholders of the parent was $4.286 billion compared to $3.888 billion in 2017, an increase of $398.0 million or 10%.

The Group’s Net Asset Value per share increased from $34.33 to $40.15 by 16.9%. The Board of Directors of the Company has recommended a dividend proposal of $1.10 per share unit, resulting in an overall cost of $934.8 million.

Revenue generated by the Company was $27.863 billion compared to $26.548 billion in 2017, an increase of $1.315 billion or 5%.

The Profit before Tax for the Company was $6.032 billion compared to $5.079 billion, an increase of $953.0 million or 18.8%, while Profit after Tax for the Company increased from $3.584 billion to $4.085 billion by $501.0 million or 14%.

My fellow shareholders, the improved results achieved were as a result of the increases in physical case sales of our Malt Products, XM Rums and Banko Wines; our Golden Harvest Bread and Baked goods and our Demico and Crème Select Ice-creams and Frostee products. Additionally, benefits were also accrued as a result of efficiencies achieved from raw material conversion and improved production throughput arising from capital expenditure investment over recent years. The improved results were also as a result of lower prices negotiated for several raw and packaging materials as well as from the prudent management of our financial resources.

My fellow shareholders, the introduction of an Environmental Levy of $10.00 per unit for all PET and returnable glass containers was gazetted during the last financial year and affected the selling prices and therefore the affordability of our soft drinks and bottled water products.

Capital Expenditure

My fellow shareholders, the recapitalization of the Company’s Capital base was continued during the period under review. The inclusion of state-of-the-art technology through the medium of plant, machinery and equipment on all of the Production Plants and in all of the service departments, enabled improved manufacturing and operational efficiencies. The New Vehicle Workshop and Truck Parking Zone were commissioned along with the New Offices for the Workshop Administration, Environmental and Safety Departments and the Building and Property Departments. Also included in that development, was new PET and Plastics chipping equipment for our in-house generated plastics waste. Our solar energy expansion programme was continued with the installation of
a PV/Solar System at our OMG and Main Street Qik Serv facilities. These departments are now partially powered by solar generated electrical power.

In addition, my fellow shareholders, a new packaging line was installed on the Trisco Cookie and Cracker Plant and new production equipment was also installed in the Dairy and Novelty Ice Plant. Our distribution fleet was further enhanced through the acquisition of new trucks and forklifts. In the new year, our Capital Expenditure thrust will be focused on increasing our potable water storage capacity, the addition of increased fermentation and storage capacity for the Winery and the installation of a new CIP system for the Bottled Water Plant. The project to transition to Solar Power across the Company will be continued. Additionally, my fellow shareholders, we will commence the construction of a new multi-story Car Parking Facility which will include space for planned future development. This construction will be housed at the Demerara Park Area.

Citizens Bank Guyana Inc

The Revenue of Citizens Bank Guyana Inc., a 51% owned subsidiary of the Company was $3.160 billion. The Profit before Tax was $1.009 billion and the Profit after Tax was $602.3 million. Net Interest Income was $2.24 billion. The Earnings per share was $10.12 while the total Assets base was $50.5 billion. Loan Assets decreased from $28.2 billion to $25.5 billion in 2018 and Customer Deposits were $40.9 billion compared to $40.6 billion in 2017.

Dividends

The Board of Directors declared a first interim dividend of $0.28 per share unit which was paid on 31 May 2018. A second interim dividend of $0.28 per share unit was also paid on 25 October 2018; and now the Board recommends a final dividend of
$0.54 per share unit, with the overall dividend per share unit held of $1.10 or an overall cost of $934.8 million.

Growth in Shareholders’ Value

My fellow shareholders, within the recently concluded financial year, we examined and evaluated new business models which are compatible with our existing business model to create wealth and value for our Shareholders.

These new business models will bring into our existing business portfolio, a new generation of products and services which will foster job creation and added value.

“We continue to evaluate our traditional business model to create wealth for
shareholders through the creation of new synergies, the implementation of finance and marketing initiatives and, continuing emphasis on cost reduction strategies.”.

From the Net Profit of $4.286 billion attributable to Shareholders, a dividend payment of $892.4 million was made, leaving the sum of $3.394 billion which was transferred to Retained Earnings. The Shareholders’ Net Asset Value per share is now $40.15 per
share when compared with the 2017 value of $34.33 per share.

Quality Management and Environmental Responsibility

My fellow shareholders, I can report with a deep sense of accomplishment that during the period under review, our Banks and GT Beers, our XM Rums, our Rain Forest Water products were awarded either Grand Gold and Gold Medals at the 2018 Monde Selection Quality Awards Competition. Our XM 12-Year-Old and 15-Year-Old Rums were awarded the Grand Gold Medal.

For the year 2018 ISO 9001-2008 Quality Management System was upgraded to ISO 9001-2015, and during the year, the following ISO Standards were recertified: - ISO 22000: 2005 – Food Safety Management System ISO T/S 22002-4:2013- rerequisite Programme on Packaging Manufacturing FSSC – 22000: 2014 – Food Safety System Certifcation ISO/TS 22002-1: 2009 – rerequisite Programme on Food Safety

During the year the maintenance of ISO 14001:2015 and ISO 18001:2007 certification on environmental management systems and occupational health and safety standards in our manufacturing processes were completed.

The Company was successful at the Finance, Environmental and Safety Audits that were conducted by the Coca-Cola Auditors. Also, we continue to perform exceptionally well in the Guinness League of Excellence which resulted in the Company being ranked fourth place within the Americas for Quality and Packaging of Guinness Stout.

Banks DIH Ltd continues to be managed and guided by the principles of sustainability and accountability so as to ensure that the best interests of our shareholders, our employees and our suppliers are maintained and to reduce or eliminate any impact which our operations may have on the environment and the communities within which we conduct our business activities.

Community Relations/Partnerships

Our Company’s Theme for Financial Year 2017-2018 was “Foundation for Growth”. To reinforce this understanding several relationship festivals were conducted across the three Counties of Guyana, where Shareholders, Suppliers, Customers and Key Public Officers came together to celebrate our diversity as a Nation. The programme of sponsoring Brand Ambassadors, Sports and Religious Events, Bursary Awards, Apprenticeships/Work Study and Academic Scholarships continued.

Future Outlook

My fellow shareholders, notwithstanding the commendable performance of the Group, we must be mindful of the innate
challenges of operating and leading a Group such as ours which may affect our continued development.

Our commitment to innovative technology, leadership in the solar energy sector, the pursuit of market extensions
internationally and impending diversification programmes will enable us to deliver better results.

Acknowledgement

I will acknowledge the expertise and counsel that the Board of Directors contributed to the progress of the Group throughout
the year as well as that of our leadership team and employees. Importantly, on behalf of the Board, I would like to express our gratitude to our valued Shareholders, Suppliers and Customers.