ANSA McAL Annual Report 2019 - Focused on the Future

SENIOR EXECUTIVE TEAM

Jerome

NICHOLAS

Bernadine Sammy-Fuentes

I am pleased to report Group profit before tax (PBT) growth of 2% to $1,036 million ($1,017 million – 2018) whilst revenues were up 3% to $6.6 billion ($6.4 billion – 2018). Earnings per share (EPS) improved by 6% to $3.74 ($3.54 – 2018).

Our results in 2019 build on the foundation we laid over the years – both financially and in the marketplace – and position ANSA McAL to succeed in the future.

COVID-19

PANDEMIC

The COVID-19 situation continues to evolve, and we recognise that we are dealing with a significant global challenge.

Many governments in the Region and around the world have taken impactful measures to ensure the safety of their citizens.

In addition to the immediate and grave health concerns, we are seeing a much wider impact on all of our lives as well as the global economy. The COVID-19 outbreak is an unusual crisis posing an array of critical uncertainties –including unknown effects on supply chain, business recovery and continuation.

First and foremost, I would like to thank our Executive Management Team and all employees for all they have done to weather this crisis and to get our Group prepared to cope with this situation. We would like to recognise our frontline employees and factory workers – without whose commitment and discipline at this time the Group would be unable to maintain business continuity. The safety of all our employees is paramount and very proactive and strict measures have been implemented at all work environments across the Group to ensure that our people and their families are protected from the spread of the virus.

Our Group has a special responsibility at this time. The supply of pharmaceuticals, food and beverage products, chlorine/bleach, plastic and glass food and beverage containers is essential to people’s lives and activities. In moments like these, it is clear that our purpose and values matter significantly to the people and communities we serve.

I am proud and inspired by the way our people have risen to this challenge - with agility, resilience, courage – and a caring heart. Due to our unique culture, we often refer to ANSA McAL as a family company.

During this unstable time, we rely heavily on our family values and live our company maxim – “Together, we are family”.

TOGETHER WE ARE FAMILY

2019 marked another positive step on our journey toward corporate and collective responsibility. Our progress and the dedication of the many people who made it possible are reflected on every page of our Corporate Social Responsibility (CSR) report. We believe fundamentally that the only thing one really needs to change the world is the simple desire to do it.

As part of our Family First Employee Relief initiative, we fulfilled our promise to our employees affected by the devastating floods that occurred in Trinidad in late 2018. In January 2019, further assistance was given to over 65 employees who received Group vouchers

totalling over four hundred and thirty thousand dollars ($430,000.00) to assist in rebuilding their homes.

Carib Glassworks Limited (CGL) demonstrated its continued commitment to the preservation of the environment by being the first privately owned quarry to partner with the Environmental Management Authority (EMA) to commence a one-hectare demonstration rehabilitation project at its Matura sand plant. Specific plants for species enrichments were used as well as the vetiver plant for soil and slope rehabilitation.

ABEL Building Solutions (ABS), partnered with the University of the West Indies Open Lectures Committee, the Trinidad and Tobago Institute of Architects as well as the Board of Architecture of Trinidad and Tobago to host a special lecture by Sir David Adjaye, OBE, on the topic of “Building Publics”. Close to 400 students, architects, artists and interested parties of the public attended the lecture. Sir Adjaye is recognised as a leading architect of his generation.

One of the highlights of our ANSA McAL family event calendar has always been our biannual Sports and Family Mini Olympic weekend. In 2019, close to 5,000 employees, showcased true sportsmanship on and off the field at UWI Spec, located in St. Augustine.

On Independence Day, for the second consecutive year, the Group put on for the enjoyment of the citizens of Trinidad and Tobago unforgettable pyrotechnics displays synchronised to music at both the Queen’s Park Savannah and the San Fernando Hill.

` Regionally, our Group companies in Guyana, Barbados, Grenada, Jamaica and the USA also

proudly participated in various aspects of country and community service in their respective countries as illustrated in our CSR report.

As we grow and manoeuvre the currents of an unpredictable world, we will remain conscious of our duty to serve and strengthen the interests of our people, our country and our Caribbean region.

We are pursuing profit with purpose and our goal is to use our resources to help create a more sustainable world.

THE ANSA McAL FOUNDATION

Relieving poverty and suffering among the people of Trinidad and Tobago and the wider region is one of the main objectives of the ANSA McAL Foundation. It endeavours to achieve this by helping people to help themselves. To this end, the Foundation disbursed a total of TT$2,057,844 to 38 different organisations for the period under review.

The Anthony N. Sabga Caribbean Awards for Excellence continues to be the major project of the Foundation and four laureates for the year 2020 were named on December 3, 2019. They are Jallim Eudovic (Arts & Letters); Andrew Mendes (Entrepreneurship); Dr. Olivene Burke (Public & Civic Contributions); and Dr. Shirin Haque (Science & Technology).

Jallim Eudovic is a sculptor from St. Lucia who was taught by his father, Kenneth, an acknowledged master sculptor. Jallim’s work has been exhibited all over the world, in the Art Basel in Miami in the United States, the Stephen Laurence gallery in the United Kingdom, and as far as China, where he has been commissioned to provide large sculptures

REPORT OF THE EXECUTIVE CHAIRMAN

for public parks in two cities, Zhengzhou and Changchun.

Andrew Mendes is an entrepreneur who is changing the profile of the extractive industries (logging and oil) in Guyana. He is the Managing Director of Farfan and Mendes Limited (FML – a family business). When he joined it in 1992, it was a small concern, employing fewer than 20 people and known mainly for selling chainsaws to the timber companies, with an annual turnover of G$78million. Today, because of his leadership, FML has business interests in not only forestry, but also in the mining, agricultural, and oil and gas sectors, and employs more than 370 people with an annual turnover in excess of G$5 billion.

Dr. Olivene Burke is a social scientist who has been the Executive Director of the University of the West Indies Mona Social Service (MSS) organisation for the last decade. Dr. Burke is responsible for executing the organisation’s vision of strengthening under developed communities via a six-pillar social intervention model comprising education and training, health, sports, entrepreneurship, crime and violence reduction and peace. She is a leader in the university’s “gown meets town” initiative to make interventions in its communities.

Dr. Shirin Haque is an astronomer at the University of the West Indies, St Augustine. She is the only professional astronomer in the Caribbean and works in and out of academe. She is an inspiring teacher and researcher in the cutting-edge field of astrobiology which seeks to understand the complexities of life in the universe. She has pioneered work on the Pitch

Lake at La Brea and the mud volcanoes in Trinidad that is recognised internationally. She was featured on BBC’s Science in Action programme in 2008 for her work in Astrobiology at the Pitch Lake and has collaborated with several foreign universities to expand the scale of research to UWI.

In 2019, the awards ceremony was held in Barbados for the first time. The laureates were Trinidadian filmmaker, Danielle Dieffenthaller; Jamaican media entrepreneur, Kimala Bennett; Barbadian civic activist, Corey Lane; and Jamaican climate scientist, Prof. Michael Taylor.

With the awards to the 2020 Laureates, the total amount disbursed via this Awards programme since 2005 is TT$19.5 million and our Laureates now number 43.

CORPORATE GOVERNANCE

Underpinning our performance is our steadfast commitment to ethical business practices and strong corporate governance.

At ANSA McAL, we believe acting ethically and responsibly is sacrosanct and also the basis of sound business judgment. We have adopted comprehensive corporate standards and policies to govern our operations and facilitate accountability for our actions. In this regard, we reviewed and launched our revised Code of Ethics and Conduct and Silent Whistleblower programme across the Group in November.

We believe strong corporate governance is the foundation for financial integrity, investor confidence and sustainable performance, and we are focused on advancing our vision with honesty, fairness and integrity.

In 2019, the Board established a Governance, Nominating and Remuneration Committee (GNRC) whose role is to ensure that the Company maintains and implements an effective Corporate Governance framework in support of the Board’s oversight responsibilities.

We acknowledge the benefits of Corporate Governance to society by, maintaining investor confidence, ensuring corporate success and economic growth. We were therefore quite pleased to be the ambassador sponsor of the 2019 Caribbean Corporate Governance Conference hosted by Aegis Business Solutions Limited which was fully subscribed and featured distinguished international and local speakers recognised for their contributions in this area.

At ANSA McAL, we believe acting ethically and responsibly is sacrosanct and also the basis of sound business judgment.

CORPORATE CHANGES

In November 2019, Mr. Aneal Maharaj, then Group Finance Director, resigned from the board. We thank Mr. Maharaj for his contribution and wish him success in his future endeavours. I am pleased to advise that Mr. Nicholas Jackman has been appointed as the Group Chief Financial Officer effective April 1, 2020. Prior to this appointment,

Mr. Jackman was the Head of Group Business Development for 8 years and has been an invaluable member of our team.

Mr. Jackman is the holder of an MBA with a concentration in Finance from Massachusetts Institute of Technology Sloan School of Management and brings a wealth of both international and local experience, with specialised expertise in investment banking, mergers and acquisitions, corporate restructuring and financial modelling. He has demonstrated his innovative skills over the course of his tenure with the Group and he has been a catalyst in the area of mergers and acquisitions, playing a pivotal role in our recent acquisitions of Berger Paints Limited, Trinidad Aggregate Products Limited, Bank of Baroda (Trinidad and Tobago) Limited and Trident Insurance Company Limited in Barbados, to name a few.

We are grateful to our former Group Chief Executive Officer (CEO) Mr. Andrew Sabga, for his significant and lasting contributions to ANSA McAL throughout his 30 years with the Company. Mr. Sabga remains as a non-executive Deputy Chairman of the Board of Directors of the Company.

I am also pleased to advise that Mr. Anthony Sabga III was appointed by the Board as the Group’s CEO effective January 1, 2020. Mr. Sabga has a Bachelor of Science Degree in Economics from City University and a Master’s in International Business Administration from Regents Business School in the United Kingdom. Mr. Sabga began his career in the Group in 2001 and can credited with the strategic development of the Group IT infrastructure as well as the introduction of balanced score card and strategic management frameworks across the Group. At this stage of the Group’s development, Mr. Sabga provides the energy and vision to deliver the Group’s strategic objectives for the future. Under his leadership, we are confident that the Group will be able to navigate through these unprecedented times.

REPORT OF THE EXECUTIVE CHAIRMAN

DIVIDENDS

We are undoubtedly facing rapidly deteriorating and uncertain macro-economic circumstances as a result of the COVID-19 pandemic. Whilst our Group is resilient and has a strong balance sheet, in such fluid and dynamic times and with extended business curtailment, your Directors believe that we should be cautious and prudent. Therefore, we have decided not to recommend a final dividend for 2019.

ANNUAL MEETING OF SHAREHOLDERS

In light of the current restrictions on the movement and gathering of persons due to the COVID-19 pandemic, the Board has decided to delay fixing a date for the Company’s Annual Meeting of shareholders. Once a date has been determined, we will update you via the publication of notices on our ANSA McAL website (www.ansamcal.com) as well as the print media.

CONFIDENCE IN OUR STRENGTH

As the Group navigates these turbulent times, we are comforted by our proven history of resilience over the course of 140 years. We have seen and risen above many challenging moments and we are convinced that we will overcome this one as well.

On behalf of our Board, I thank you our shareholders for your investment and support of ANSA McAL. We appreciate the trust you place in us to oversee your interests in our business. We continue to create a stronger and socially responsible company for you and all of ANSA McAL’s stakeholders.

A. Norman Sabga

A. NORMAN SABGA LLD (Hon.) UWI; (h.c.) UTT EXECUTIVE CHAIRMAN

Focused on creating an all encompassing building experience that is second to none

The Construction Sector, launched in mid-2019 at the Centre of Excellence, Macoya, Trinidad, is the newest business sector within the ANSA McAL Group. The companies within this sector were carved out of the Manufacturing Sector, to ensure that greater attention and emphasis could be placed on growing the value proposition and efficiencies across these subsidiaries that service the Construction industry.

This sector manufactures and represents a full array of products and services, specified to meet all International Standards. This is evident in the products which fall within this Sector; ABEL clay products, Bestcrete concrete products, Penta Paints, Sissons Paints and the newly acquired Berger Paints.

Our clay and concrete products are manufactured in Trinidad within our state-of-the-art facilities, utilising environmentally friendly technologies. ANSA Coatings operates plants in both Trinidad and Grenada, along with Berger Paints that has plants in

This sector manufactures and represents a full array of products and services, specified to meet all International Standards.

WE CONTINUE ALONG A PATH OF SUSTAINED GROWTH AND EXECUTION CAPABILITY

In what was a challenging and transformative year our Group continues its growth trajectory delivering another record year in revenues $6,593 million up 3% from $6,385 million (2018).

FISCAL YEAR HIGHLIGHTS

• Operating profit up 6% to $1,117 million from $1,056 million (2018)

• Profit Before Tax (PBT) up 2% to $1,036 million from $1,017 million (2018)

• Gross profit margin up to 40% from 39% (2018)

• Net profit margin up to 11.8% from 11.3% (2018)

• EPS up 6% to $3.74 vs $3.54 (2018)

• Finance costs at $95 million vs $66 million (2018)

• Total assets up 3.2% to $15.8 billion from $15.3 billion (2018)

While we are assured that our strategies and decisions have provided for these admirable results we remain resiliently focused on the future. Our historical prudent and disciplined approach to management and business will see us navigate the current challenges being faced by the global pandemic of the Coronavirus. Emerging stronger

$ in millions except per Share data

and even more resilient as we transform to position ourselves to powerfully face the societal challenges and opportunities that are ahead of us.

Through our subsidiaries, we engage in a number of diverse business activities. Your executive management participates in and holds itself accountable for its capital allocation decisions and re-investment activities. Our growth opportunities are balanced between organic and inorganic, selectively strengthening our portfolio with acquisitions designed to augment size and reach.

Revenues for the period ended 31st December 2019, grew to $6,593 million ($6,385 million – 2018) representing a 3% increase over the previous year surpassing the previous peak established last year.

Insurance and Financial Services segment was up 19%, Manufacturing, Packaging & Beverage segment was up 3%; whilst Automotive, Trading & Distribution and Media, Retail and Head Office were marginally down 0.5% and 4% respectively compared to prior year.

Growth across all geographic territories was mixed over prior year:

• Barbados revenues up 5%

• Trinidad & Tobago revenues up 4%

• Eastern Caribbean revenues flat

• Guyana revenues down 2%

• Jamaica revenues down 10%

• United States revenues down 11%

Figure 1 Ten-year Summary of Financial Performance

DISCUSSION AND ANALYSIS

OF GROUP RESULTS

The Group’s blended gross profit margin improved by 1.0 percentage point to 40% due to improved operating efficiencies which offset headwinds primarily due to higher commodity raw material prices and the shortage of foreign exchange which continues to impact our trading results.

Operating Profit (before share of associated company profits and finance charges) increased by 5.8% to $1,117 million ($1,056 million – 2018). The operating profit margin to revenue also increased by 0.4 percentage points to 16.9%. Demonstrating our efforts at cost management are bearing fruit. We have been careful to manage down overhead expenses while encouraging growth related expenses including export market development, research & development, advertising & promotion and training costs.

Finance costs increased to $95 million from $66 million (2018) of which $5 million was classified as interest on lease liabilities related to the adoption of IFRS 16 (zero in 2018). The actual finance cost related to borrowings, overdrafts and other finance costs was $90 million from $66 million (2018). The gearing ratio, as measured by the total interestbearing debt to shareholders’ equity, was 10.3%, improving 1.2 percentage points compared to the prior year. This means that additional debt taken on was outstripped by our growth in equity and demonstrates our prudent, constructive, low-risk approach to manage growth while maintaining a financially stable balance sheet.

Profit Before Tax improved by 2% to $1,036 million after $29 million in one-off charges and expenses related to restructuring across all operating segments as we invest in streamlining our operations and business lines to better position us along our sustained growth path.

The one-off impacts that have temporarily diluted group results were costs related to:

• Absorbing the Berger and Trinidad Aggregate Products acquisitions within our existing businesses ($21 million)

• Rationalising our Automotive operations in Trinidad & Tobago and Barbados ($8 million)

The Group’s performance is robust enough to absorb one-off restructurings. Normalised for these, the core base profitability would be $1,065 million. We ask shareholders to appreciate that as we constructively acquire new businesses there may be a temporary dilution in profitability until the new business is integrated into the Group. As integration takes full effect, we expect each transaction, post-restructuring, to be accretive to future earnings; justifying the level of our investment.

DISCUSSION AND ANALYSIS OF REPORTED SEGMENT PERFORMANCE

Each business segment is well diversified and balanced. We view performance through different lenses and one of these is across four specific market segments. Capital is invested in each of these segments based on criteria set by the Executive Committee.

MANUFACTURING, PACKAGING AND BREWING

: This segment comprises the manufacture of plastics; glass containers; safety matches; bleach; paint; construction supplies and brewed and non-brewed products. Total assets invested were $3,345 million ($3,156 million – 2018) across a range of geo-markets including Trinidad & Tobago; Barbados, Eastern Caribbean, Jamaica; and Florida. The segment generated revenue growth of 3% to $2,688 million ($2,609 million - 2018) and Reportable Segment PBT decrease of 13.4% to $431 million ($498 million – 2018). The blended

REPORT OF THE GROUP CHIEF EXECUTIVE OFFICER

profit margin was 16%, down 3.0 percentage points from the prior year mainly as a result of one-time restructuring costs associated with consolidating selected production operations across our block manufacturing and paint businesses – with the acquisition of Trinidad Aggregate Products we consolidated production in a single state-of-theart plant, and again with the acquisition of Berger Paints Trinidad Limited we consolidated paint manufacturing operations in a single plant in Trinidad & Tobago.

We have reinvested across our manufacturing facilities to expand productive capabilities - a new furnace unit in Carib Glassworks including an upgrade in Narrow Neck Press and Blow Technology which positions the company to compete for regional business opening up new potential revenue streams. We also successfully established our water treatment business in Jamaica having recently commissioned our chlorine transfill hub. We remain focused on fully utilising this productive capacity across all manufacturing companies which will return improved margins. Building on investments in recent years, ANSA Polymer has expanded its supply of paint pails to include the Group’s Sissons and Penta brands, and has continued to replace the current extra-regional shrink film in the local market.

We continuously seek to improve the quality of our products. Carib Glassworks achieved FSSC certification through continued investment and upgrade of inspection technology and training. Trinidad Match Limited introduced scented and unscented palm wax candles which are superior in quality and give longer burn times than any other in the market. Product packaging was converted to larger match boxes and the quality of the safety matches were improved ensuring a perfect light at first strike.

Carib Brewery Limited commenced distribution of the internationally renowned Coors Light brand in February with local brewing in October. 2019 was also a solid year for innovation with the highly successful introductions of Caribé Tropical Hard Cider Rosé and Ginseng UP Cranberry. Cider innovation has exceeded expectations appealing to a unisex consumer looking for alternatives to beer. We continued plant improvements by commissioning a new canning line filler, which will increase capacity and facilitate innovation in can format.

International sales recorded a second consecutive year of double-digit growth at 14% versus 2018.  This performance was driven by organic growth in Antigua, Barbados, Dominica and St. Vincent; innovation with the launch of Carib Draught in key tourist markets and new business in Cuba and Aruba.  As we lead with Carib, this brand now accounts for 41% of total global sales volumes and is available in 25 of 26 markets serviced. The focus for the future is to deliver continued and consistent growth that is profitable and sustainable.  To do this, the business model can potentially evolve to include licensing and other co-pack arrangements that allow for additional packaging options.

We expect growth in 2020 to be driven by profitable innovation and continuing momentum on our flagship brands Carib and Stag. Careful capital investment in plant, including in packaging, filtration, utilities and brewing, along with cost initiatives will improve efficiency in 2020.

AUTOMOTIVE, TRADING & DISTRIBUTION:

This segment includes the automotive and distribution businesses in Trinidad & Tobago, Barbados and Guyana. Total assets invested were $1,652 million ($1,658 million – 2018) with revenues generated of $2,503 million ($2,515 million – 2018) and PBT of $141 million ($178 million - 2018). Reportable

Segment PBT fell 21% with blended profit margins at 5.6%, down 1.4 percentage points from the prior year. In Automotive, the Trinidad & Tobago market experienced further decline in new vehicles sales, but we held steady with our share of the market, despite exiting the dealership of one of our premium brands. Our entry into the CNG space remains lucrative and continues to serve the business on a growth path. Both our heavy equipment and truck business have begun to rebound with the lift in heavy construction moving into 2020. In Barbados the wider economy remained soft overall in 2019, and the automotive industry is not spared its impact.

Overall, in Trading and Distribution, revenue was flat as solid growth in the Trinidad & Tobago market was offset by weaker performance in Barbados and Guyana markets namely as a result of lower volume Government tenders in the pharmaceutical segment. Growth in our Distribution business in Trinidad was faster than the last 3 years, outpacing both the national retail and distribution industry average. The focus is on building an organisation that can succeed in an environment where the trade is consolidating to fewer, large and highly sophisticated customers, unabated parallel trade, flat demand and restricted foreign exchange availability. We remain committed to improving and expanding our operations. In Guyana we have doubled the size of our warehouse facility to facilitate future growth as well as opened two additional TWEE stores. In Barbados, we are pleased with the growth of our Food and Consumer business. We are optimistic of delivering the expected results going forward.

INSURANCE & FINANCIAL SERVICES: This segment includes life, property & casualty insurance and merchant banking. The segment generated revenue growth of 18.7% to $1,004 million ($846 million - 2018) and Reportable Segment PBT increased 35.1% to $357 million ($265 million – 2018). Our Banking business produced a 11% increase in PBT compared to 2018 due to favourable investment returns and merchant banking activity in the capital market. Our Insurance companies increased their premium

income by $125 million showing improved growth in our major business lines. Tatil’s Financial Strength A- (Excellent) Rating was again affirmed by international rating agency A.M. BEST.

Significant improvements were also shown in nonfinancial areas of operations. A major customer service transformation was launched which has resulted in improvements in each of the companies’ net promoter scores. This year we completed two core ERP implementations – in merchant banking and in accident and health. These new systems will provide a more robust platform from which to build operating efficiencies. The outstanding union agreements in TATIL and TATIL Life for the periods 2015-2017 and 2018-2020 were settled. A number of initiatives were also introduced to manage risk and streamline operations including the introduction of a more robust IT risk management system, tighter loss management systems in our insurance companies and more stringent AML/KYC systems at ANSA Merchant Bank. In December 2019, the Group acquired Trident Insurance Company Limited, a Barbados-based general insurer and entered into a definitive agreement to acquire the Bank of Baroda Trinidad Limited; the closing of this transaction is subject to all the terms and conditions of the relevant agreements and to all regulatory approvals being received. We believe these two acquisitions will augment our service offerings and significantly enhance our market position in both insurance and banking.

Going forward, we will build on these successes to widen the footprint of our businesses regionally, to commence the introduction of digital solutions to enhance customer service and to widen our agency base to drive growth in premium income.

MEDIA, RETAIL, SERVICES & PARENT COMPANY:

This segment, which includes our majority stake in multimedia company Guardian Media Limited, furniture, appliance and business equipmentretail, shipping, logistics and purchasing services and real estate, reported revenues of $398 million ($414 million – 2018) and Reportable Segment PBT of $106 million ($77 million – 2018). Media continues its multi-year turnaround plan to

REPORT OF THE GROUP CHIEF EXECUTIVE OFFICER

evolve from a traditional to multi-media business. This transformative plan is into its last stages demonstrated by healthier results compared to prior year in 2nd half of 2019 due to improved management of controllable expenses.

Many successes were celebrated in 2019 and these have positioned Guardian Media Limited to return to profitability in 2020. The implementation of a cover price increase from September 1st will contribute to offsetting the continuing rise in production costs. Our overall audience share continues to grow through the delivery of top-class editorial content. We integrated our newsroom to optimise on cross media synergies between TV and Print reporters through greater collaboration and multi-media journalism. According to independent newspaper survey results, the Guardian newspaper is the fastest growing newspaper in the local market.

We reconfigured our commercial approach to maximise opportunities in the market as well as invested in improving our sales and service capabilities. Our audience reach and appeal benefited from the successful launch of Guardian Media Community Project in the areas of Chaguanas, Sangre Grande, Princes Town, Arima, Port of Spain and San Fernando in August and September. We were pleased to be able to bring the 2018 Hero CPL T20 Caribbean Premier League to our audiences. Digital achievements to date include wider reach to our audiences through 1.8 million connections daily. Overall, our bundled services offer our clients the right mix of platforms, incorporating all aspects of both traditional and digital media through our diverse brand portfolio in radio, tv, print, digital and billboards.

CNC3 (TV) in its traditional format will be undergoing drastic changes as it will be based on local content with a heavy focus on current affairs. This will enable Guardian Media Limited to control

costs whilst staying relevant.

Key strategic priorities in 2020 include the continual transformation of our diverse multimedia products to remain powerfully relevant in the age of instant breaking news on multiple digital media sites. As we defend and grow our core advertising revenues through more effective branding, marketing and selling, our focus will remain on driving efficiencies, investing carefully and continually reducing controllable expenses. Our people will continue to be the bedrock of our Company and we will continue to invest in them to ensure business continuity and growth through targeted training across the organisation in sales, digital media, leadership, multi-media journalism and customer service.

Retail sales have remained steady. Improvements in retail supply chain and closure of underperforming branches have pared losses to $5 million.

Going forward in 2020 we have begun executing on some transformational strategies, including taking our Retail businesses online by mid-year, digitising some of our offerings through the introduction of mobile payment and other apps, diversifying our offerings at MBM from a focus on hardware to also providing software, digital and business solutions and expanding geographically into other Caribbean markets. In all Retail subsidiaries we have begun the process of imbedding the net promoter score methodology and philosophy for ensuring we deliver world class customer experiences for all.

Services’ unconsolidated revenue was up 5% as its core shipping lines were all up compared to prior year. The business model in this area was reorganised into one service offering from procurement to delivery to the customer’s door. We have redefined our service deliverables to provide an enhanced service. To support the

improved service levels and growth initiatives, we have expanded our sales and marketing team and enhanced the capability of the Customs Brokerage Department.

ANSA McAL US will be going live with new software by the end of the third quarter in 2020 which will improve its service delivery to Group companies.

Ultimately, we expect the review of supply chain processes will result in efficiency improvement and lower inventory carrying stock levels.

Under Parent Company, we made substantial investments in our joint ventures. In Q2 2019 the Group acquired the remaining 50% interest in its joint venture Caribbean Roof Tile Company Limited increasing its ownership to 100%; and through the Group’s 50% joint venture arrangement with MPC Caribbean Clean Energy Fund, we acquired a 21 MW windfarm Tilawind S.A. in Costa Rica. The share of losses from joint venture interests was $14 million primarily due to receiving regulatory approval for the acquisition close of the windfarm during its low season. Adjusting for full calendar year results, the business would have reported both positive earnings and cash flow. The share of profit from associated companies was unchanged at $27 million ($27 million - 2018). Overall, we will continue to execute our repositioning plans to support improved delivery.

DISCUSSION AND ANALYSIS OF PERFORMANCE BY GEOGRAPHIC MARKET

We have a strong regionally diversified portfolio; we continue to invest in each:

two additional TWEE Stores, including our first non-Duty-Free format at the popular Giftland Mall over the period. Our distribution business revenue grew for the Beverage, Food and Consumer areas but was offset by the decline in pharmaceutical sales via Government tenders. ABS’ clay blocks are now being distributed by Gafoor’s Hardware, the largest supplier of building materials in Guyana.

We look forward to improved results in our automotive business as we continue to support our planned expansion. We also intend to open a logistics office in Guyana by the end of the second quarter in 2020.

BARBADOS

Revenues increased 5% despite challenges with the foreign exchange control and an increasing shortage of hard currency availability as this country continues to face economic hardship as a result of the structural adjustments taken by the Government. Net assets increased 4% to $297 million. The Group’s results were also positively affected by the new Barbados corporate tax regime (effective 1st January 2019) which was revised to a progressive scale capped at 5.5%, down from 30% in 2018. We hope this signals a recovery, justifying our commitment to invest over the long-term in Barbados.

In our Automotive business, the restructuring exercise aligned costs with the company’s revenue streams. The introduction of exciting new compact SUV and EV models will create opportunities for growth in 2020. The rental division has expanded through many opportunities in the tourist sector and within two years we are among the major providers.

Revenues were down 2% whilst net assets increased by 8% to $76 million as we doubled our distribution warehouse facility and we have added

At Bryden Stokes, we generated all organic growth of 4% in the largest aspect of our business which is Food and Consumer goods. This growth is confirmation that the business reorganisation which began in 2017 is delivering expected results. The reduced Government demand for pharmaceuticals as well as the one-time charge of discounting Government debt has impacted

REPORT OF THE GROUP CHIEF EXECUTIVE OFFICER

both the revenue and profitability of the company. However, with the majority of the business restructuring complete, we are already seeing much more consistent performance and expect this to continue in 2020.

EASTERN CARIBBEAN

Revenues were flat at $274 million with net assets invested of $157 million. This relates primarily to our two breweries located in St. Kitts and Grenada and our paint manufacturing operation in Grenada. If one looks at gross sales figures, the actual picture is more satisfying as we have begun to deliver on our objective to increase plant utilisation levels across these bases. Both our operating breweries in the EC ramped up production volumes.

Our St. Kitts operation had another excellent year achieving record sales and production volumes with 47% export sales growth while our Grenada operation delivered record domestic sales and production volumes. We continued our plant improvements by completing two major projects: two new dual-purpose vessels and a labeller upgrade to improve plant efficiencies.

Similar to St. Kitts Breweries, 2019 was a growth year for Grenada Breweries Limited, with the company also achieving record levels of domestic sales and production volume. This was mainly driven by improved performance of brewed products in the local market. The company also invested significantly in its commercial operations through replacement of trucks, expansion in trade signage and chillers. Production capacity was also increased through the installation of two new dualpurpose vessels. There will be further significant investment in plant and equipment in 2020 to increase capacity and facilitate future innovations.

In Antigua and Barbuda, a Memorandum of Understanding with the Government of Antigua

and Barbuda has been signed which will see the development of our fifth brewery with accelerated business presence in that market.

JAMAICA

Revenues reported were $130 million, down 10% driven by Berger Paints Jamaica Limited. We have introduced the Penta brand market thus allowing our business to now compete at all levels of the decorative coatings market from premium to economy. In December we successfully commissioned a chlorine transfill hub which positions us to better compete in the CARICOM region’s second largest chlorine market beginning next year. The hub is staffed exclusively by locals and will offer benefits to the Jamaican economy that extra-regional imports will be unable to match. Our water treatment business in Jamaica will focus on offering superior service and costeffective solutions to the Industrial/commercial sectors.

USA

Operating businesses include our procurement/ logistics hub as well as brewing through Indian River Brewing Company (trading as the Florida Beer Company). Revenue fell by 11%. Profit growth was constrained by higher investment in brand building and operations, and a slowdown in craft beer growth in the US. In 2020, we will be executing the “All 4 One” brand strategy that targets proven winners like Caribé Tropical Hard Cider, Hurricane Reef and Carib, especially in our stronghold markets of Florida and New York.

ANSA McAL US recorded year on year growth for both unconsolidated revenue and PBT, but on a consolidated basis showed a decline in third-party revenue thus influencing lower US results.

TRINIDAD & TOBAGO

Our net asset investment in our home territory reached $8 billion with revenue improvement of 4% year on year. The continued shortage of hard currency has adversely impacted our ability to trade and our costs of sourcing currency have also increased.

TAXATION

TAXATION AND EFFECTIVE TAX RATE:

In 2019, the Group paid $275 million ($329 million – 2018) in taxes including corporate taxes, business levy and green fund levy across all jurisdictions in which we are resident. Over the past 5 years, total taxes paid was in excess of $1.4 billion. The Group’s effective tax decreased as a result of the reduction in corporate taxes in Barbados to where the statutory tax rate was reduced within a progressive scale capped at 5.5%, down from 30%. Whilst we take great pride in the Group’s level of compliance, the Trinidad & Tobago high tax rate is creating a competitive disadvantage when compared to other jurisdictions. We will continue to maintain compliance whilst working with Industry and Government to achieve a reasonable balance of economic returns.

CAPITALISATION RISK MANAGEMENT

THE

BALANCE SHEET CONTINUES TO BE PRUDENTLY AND CONSERVATIVELY MANAGED.

Total assets grew to over $15.8 billion; an increase of 3.2% over the prior year with approximately 52% of all after tax earnings reinvested into the business to fund future expansion. We are focused on optimising the return on existing assets and have maintained a prudent, low-risk approach to manage growth while maintaining a financially stable balance sheet. I am pleased to report that all balance sheet metrics are healthy. I confirm that all regulatory and solvency ratios are adequate.

RISK IS MANAGED THROUGH THE SUBSIDIARY BOARDS WITH MONITORING AT THE CORPORATE HEAD OFFICE LEVEL. As reported previously, we define “Risk” as anything that causes a deviation to our corporate plans or potentially impacts the Group’s reputation, HSE and financial performance. Risk is managed through Subsidiary Boards with monitoring at the head office level. The major risks are described below:

AVAILABILITY AND PRICING OF HARD CURRENCY. This remained the biggest risk impacting the Group’s ability to grow and to manage increased input costs. The Group has positive long-standing relationships with its principals and have negotiated favourable credit terms and this has assisted in managing the current situation. In Trinidad & Tobago and Barbados, we experience significant constraints in securing US currency. We have the currency (in Trinidad & Tobago dollars) to consummate almost any transaction or acquisition, however the challenges to purchase foreign exchange has forced us to borrow and has increased the cost of doing business. Also, though our leverage is low, the repayment of hard currency loans is also impacted by unavailability of hard currency.

COUNTRY RISK. Last year’s restructuring of the Government of Barbados debt impacted earnings significantly. As a result, any of the Community’s less developed countries (LDCs) may opt to apply Article 164 of the CARICOM treaty. Article 164 temporarily allows LDCs to treat goods coming from the Community’s more developed countries (MDCs) as international goods rather than domestic. This will affect the competitiveness of our exports to the OECS. We continue to work collaboratively and support all Governments and the countries which we operate in and will increase our monitoring of the economic climate. We, as a Group, take seriously our compliance with the

REPORT OF THE GROUP CHIEF EXECUTIVE OFFICER

respective laws of every territory we conduct trade with and now need to factor in the growing country risk into our future investment planning.

CREDIT RISK. This risk is heightened in the CARICOM region particularly Trinidad & Tobago and Barbados which are experiencing contraction in Government and consumer spending as well as receiving timely payment for government receivables. Each subsidiary has a process around the granting of credit and there is Board oversight of the process. In cases where provisions are taken, debts are still pursued and where necessary, legal action has been taken to enforce recoverability.

INVESTMENT & CREDIT RISK. This is concentrated in the Financial Sector and is actively managed by Investment and Credit Risk Committees. Each month, the various Committees meet to review the recoverability of investment and appropriate provisions taken in accordance with policy and regulatory requirements. As at 31st December 2019, all necessary provisions and impairments have been reflected in the financial statements.

ILLEGAL IMPORTS / PARALLEL TRADE. Illegal imports and parallel trade impact local content and employment. We have had to actively engage stakeholders to help contain illegal imports; dumping and contravention with local labelling standards. Such imports do not just impact the growth of the Group but also the activity evades the taxation net and is a source of revenue leakage for the host Government. We are working with regional governments to introduce greater enforcement and/or regulatory change as necessary.

CYBER ATTACKS. As businesses evolve to online commercial platforms and corporate collaboration tools this risk has now become pervasive across the region. We have strengthened our controls around cash and tightened our monitoring of processes.

GOVERNANCE

At ANSA McAL, Governance is just as important as earning money. For the past 140 years, our reputational brand and values as an organisation govern how we behave and conduct business regarding all 6,000 employees across the region and this is why we have a restless pursuit to do better each year. In 2019, we had over 104 internal audit reviews across the Group in addition to the external statutory audit. Each review is designed to identify system deficiencies and to help improve business processes and efficiency. Our operating businesses have strong Boards of Directors who provide constructive challenges to subsidiary management and active audit committees. The Board of Directors for the Group has eminent nonexecutive Directors as is the case in many of our subsidiaries.

CLOSING REMARKS

Overall, the Group’s portfolio is well diversified. In every business line and in every geographic territory in which we do business we are a major industry supplier with deep insights into our customer, channel and market requirements. The Group’s balance sheet evidences exceptional financial stability; we have a strong governance culture; high quality, sustainable earnings stream; diversified portfolio and demonstrated talent in every sphere.

Anthony N. Sabga III

ANTHONY N. SABGA III GROUP CHIEF EXECUTIVE OFFICER

TALENT

STRATEGY

Talent remains that top strategic people leadership thrust of the Group. The Group continues to take a structured, data-driven approach to its talent management. In our commitment to continuous improvement, further material enhancements were made in 2019 in how we acquire, develop and deploy our talent.

The summary data captured below demonstrates that, though we are still on a journey, our process is both sound and evolving:

The critical priority area for the Group continues to be its turnover of newly appointed staff (i.e. staff with less than 2 years’ service). Highest turnover rates were reported within our Manufacturing, Retail and Distribution sectors. High performer turnover, though a fraction of international benchmark levels, showed a small decline in improvement gains when compared to 2018. This is directly related to the competitive labour market within Trinidad and the wider Caribbean region, where our top talent is targeted by our labour market competitors. While overall employee turnover rates improved, there is still more focused work to be done in our recruitment, onboarding and deployment strategies.

We are pleased to note that the employee engagement ratings have improved, with overall Group engagement reported at 70%. Though significantly higher than international reports, which consistently tend to average around 30%, attainment of the Group’s stretch target of 75% will continue to be our focus for improvement in 2020. We will achieve this through action plan implementations and consistent communication of our employee engagement priorities. The Beverage sector, ANSA McAL Head Office and ANSA McAL Barbados all either met or exceeded the Group’s employee engagement stretch target.

The new analytic introduced in 2020 was tracking the percentage of development plans completed for our high potentials and future successors, coming out of our annual Talent Calibration process which takes place in April/May of each calendar year. This metric allows the Group to ensure talent-related commitments made by our business leaders are being executed.

CALIBRATION & MEASUREMENT

Coming out of the Talent Calibration process in April/May 2019, a new initiative was launched in the Group to further drive its talent agenda - ANSA McAL’s Annual Talent Day (ATD). This event was held in June 2019. It involved all Sector Heads and Managing Directors who came together for a full day to discuss subsidiary/sector succession plans, high potential development plans and opportunity for cross-sectorial moves as part of career planning for the Group’s top talent. The Group’s ATD will now form part of its annual talent calendar. It will provide a consistent conversation and most importantly, the basis for execution assurance.

The 2019 Talent Agenda’s core focus was ensuring that the process for identifying our high potentials is done in a more structured, rigorous and reliable manner. A key activity was the introduction of the talent validation model to assist in the decision-making around the suitability of candidates recommended as a High Potential within the Group. This model utilises predictive assessments to ensure that our high potentials are cognitively strong and have the correct personality factors required for senior leadership success. This structured approach has also been implemented for recruitment of all professional level and business-critical roles across the Group. Further improvement will be made in 2020; we will launch the Development Assessment week as an additional component of the Talent Calibration

ANSA McAL Group HR Orientation 2019

REPORT OF THE GROUP HUMAN

RESOURCE DIRECTOR

process. This will allow us to ensure the purpose of assessments are well communicated and that there is standardisation of administration across all high potentials within the Group.

PIPELINE

In light of our aggressive talent agenda, continuous investment into our talent pipeline continues to remain a priority.

Cohort 3 of the ANSA McAL EMBA is well underway, with employees having finished their first year. The Group will be launching Cohort 4 in May 2020. Employees identified for this are all high potentials and/or high performers within the Group and the completion of the EMBA forms part of their targeted development and succession plans.

The Champions Programme for Cohort 4 was finalised with a launch date of January 2020. There was an in-take of eight (8) Champions, who have been assigned to various subsidiaries, based on their educational background and interest. This Programme, launched in July 2015, has been extremely successful, with Champions being permanently placed into specialised and technical roles within subsidiaries, after completion of their 2-year rotation. As such, the Champions Programme will be an excellent way to acquire and develop young talent in other countries that the Group operates in. For 2020, Group HR will launch the Champions Programme in Barbados, Guyana and Jamaica, as part of its long-term talent acquisition plans, particularly in countries where the present labour market offers limited skillset.

In addition to the ANSA McAL EMBA, the Group has partnered with the Arthur Lok Jack Global

School of Business on the design of the following projects (to be kicked-off in 2020):

1) Master’s in International Business Capstone Project

2) IMBA Guyana Internship Project

3) BSc. International and Sustainable Business Programme Internship

INCENTIVISATION

As reported in 2018, the Group engaged the world’s leading compensation consultants, Korn Ferry, to review and advise on its approach to compensation. The new Executive Incentive Plan (EIP) was implemented in January 2019. It encourages our two hundred Executives across the Group to substantially increase their total compensation by balancing company commercial delivery and individual contribution. Commercial delivery is aligned to the attainment of promised profit before tax (PBT), but individual contribution now accounts for a more significant element in the compensation design and will be determined by a maximum of three key performance indicators (KPIs). These KPIs are SMART and must achieve results that “move the needle forward”; the KPIs are calibrated before finalisation so that there is quality assurance on their measurability and suitability. Korn Ferry found that our short-term incentives were significantly higher than market offerings, but were less competitive on the long-term compensation element. In response, we maintained that superior short-term labour market competitive positioning, but introduced a material long-term element as well. This element rewards executives for attaining their subsidiary’s benchmarked return on total asset (ROTA target), thereby aligning our Executives’ immediate profit motives with long-term balance sheet optimisation.

INDUSTRIAL RELATIONS

EMPLOYEE ENGAGEMENT

Employee engagement is one of the most critical people indicators that we routinely track. The gains that we are making as a Group are captured above. However, it is not merely an indicator of the alignment of talented employees to strategic purpose and commercial delivery. It is an assurance to leadership that our employees are functioning in a psychologically healthy, enabling environment. It is, therefore, also a leading indicator of our future industrial relations outcomes. I am happy to report that the process is now an institutionalised, highly communicative iterative process of continuous improvement.

CLIMATE & COOPERATION

The Group remains concerned that the macroeconomic industrial relations climate in Trinidad & Tobago is adversarial, especially when compared to the other countries within which it operates – namely, Barbados, Guyana, Grenada, St. Kitts, Jamaica and the USA. As a result, we have

decided to take personal leadership for changing this narrative.

In 2019, all Sector HR Managers and Group Industrial/Employee Relations Advisors were trained in Mediation and have applied for certification from the Mediation Board of Trinidad & Tobago, which they anticipate will be awarded in 2020. The objective of this approach is to secure win-win results, where both parties enjoy mutually beneficial outcomes. The positives are already evident:

1) In 2019 the Group underwent significant one-off restructuring with full consultation and agreement with the recognised majority unions (RMUs) where they existed; there were no resulting trade disputes – even though the number of exercises (7) was greater than the combined total number of restructuring exercises for 2017 (2) and 2018 (4).

2) We were able to settle several collective agreements within acceptable levels (averaging between 7% and 10%).

THOUGHT LEADERSHIP: PROGRESSIVE INDUSTRIAL RELATIONS

The Group continues to assume active leadership in the Joint Chambers Committee for Industrial Relations Reform. Trinidad & Tobago retains the lowest ranking in Cooperation of Labour-Employer Relations in the Global Competitiveness Index; in 2018 we were 140th out of 140 countries and in 2019, with the addition of another nation, we now rank 141st out of 141 countries. This represents a continuous slip at the lowest possible ebb; in 2017, we ranked 136th out of 137 countries.

We also note with dismay that there has been no improvement in absenteeism rates with significant attendant costs; absenteeism for our Trinidad & Tobago unionised workers remain in the 5-10%

REPORT OF THE GROUP

HUMAN RESOURCE DIRECTOR

range on average, versus 3% for our non-unionised employees, and less than 3% for our employees in US and Eastern Caribbean.

Over 2019, the Joint Chambers kept the issues alive and increased public awareness of the necessity for change. This work will continue until the necessary legislative changes have been achieved.

TRADE DISPUTES

Notwithstanding the adversarial nature of industrial relations in the macro economy, there has generally been a noted improvement in the number of trade disputes brought against companies within the Group. This improvement is a direct result of greater proactivity/bilateral discussions in the engagement of our RMUs. Additionally, there has been an increased focus on training Supervisors and Managers in understanding the principles of IR, Collective Agreements, managerial rights and progressive discipline approach.

Over the past three years, we have seen a diminution of trade disputes, with the number of

new disputes in 2019 being two-thirds of those of 2017. The number of new disputes over prior year were nearly halved in 2018, but we note an uptick in 2019. This increase is largely attributable to one subsidiary where there has been an overall increase in disputes. This increase is related to a more aggressive approach to managing performance shortfalls and absenteeism. If the disputes of this particular subsidiary are removed from the threeyear period, there is an overall decline of trade disputes by 67% over the period and 30% from 2018 to 2019. It is expected that the new way of working in the subsidiary is a necessary disruption and will soon be an established norm, with the associated decline in disputes that should become evident over 2020.

HEALTH, SAFETY & THE ENVIRONMENT

Our Trinidad & Tobago-based subsidiaries have achieved yet another milestone by recording zero lost time incidents (LTIs) for 2019. The improvement in safety performance was also evident in many of our overseas companies, with

notable improvements in companies who assumed a safety-focussed agenda over 2019, notably Florida Breweries and McEnearney Quality Inc who also recorded zero LTIs for the year.

Even though we have seen a reduction in the number of LTIs and their associated cost, the number of Lost Work Days has increased over the past three years (though 2019 had a year on year improvement of 63%). This is attributable to the fact that the two LTIs of 2019 led to fractures (which have since healed), resulting in the two subsidiaries placing strong safety awareness at the top of their leadership agendas with the supporting accountability and consequence management frameworks.

Throughout the Group the various leadership teams continue to work closely with all HSE support in reinforcing the positive safety culture throughout the Group.

In 2019, the Hand Safety Campaign, which had been launched in 2018, continued throughout the Group with focus being placed on training and raising employee awareness. The results were disappointing in that it remains the most significant area of HSE risk and there was only a 1% reduction

in the number of recorded hand injuries over the year. Work will continue in this area with renewed focus on alternative approaches.

A key area of improvement has been our environmental performance. Due to focus on process safety and improvements in plant and equipment, our companies had no emission incidents whilst achieving improved overall production performance.

Another key initiative was the launch of the Contractor Management program which was started in Q3 of 2019 and will be scheduled each quarter at various locations across the Group. The program allows for contractors to be certified to work for any Group company and is valid for one (1) year. Contracted employees are made fully aware of all the safety requirements and HSE policies and procedures throughout the Group. We are on a journey and it is with this spirit that we celebrate that Carib Glass was recognised at the American Chamber of Commerce HSE Awards as one of the finalists for “Most Improved HSE Performance 2019”. The good work will continue.

REPORT OF THE GROUP HUMAN RESOURCE DIRECTOR

CONCLUDING COMMENTS

In looking back upon 2019 and singling out our successes and thinking deeply of our opportunities, I feel the satisfaction of work well done by my HR and HSE teams. I also feel the weight of moving beyond the big gains and, not merely sustaining those gains, but ensuring that the further improvements do not prove elusive. This is not a daunting undertaking as I am confident in the competence and commitment of our people. Together, we will deliver.

Teresa White

TERESA WHITE GROUP HUMAN RESOURCE DIRECTOR

Focused on a culture of strong Governance and Ethics

CORPORATE GOVERNANCE REPORT 2019

The ANSA McAL Group is proud of its unwavering commitment to deliver sustained growth through strong Corporate Governance. In 2019, a decision was taken by the Board to strengthen the Group’s Corporate Governance Framework.

In November, the Group’s Code of Ethics and Conduct was refreshed and launched across the Group in tandem with our #SPEAKOUT campaign.

The Group is focused on developing a culture of empowering its people to act with responsibility and to build trust by embracing the principles of our Code as well as our core values: Employee Centered, Customer Excellence, Creativity and Innovation, Social Responsibility, Respect and Trust.

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Effective Corporate Governance is essential for maximising long-term value creation for our shareholders. Our values of Honesty, accountability, Integrity and a strong commitment to social responsibility guide our business and ensure that we maintain the Trust of our shareholders, employees and other stakeholders.

We consider the ANSA McAL Code of Ethics and Conduct to be an essential tool which guides our decision making, actions and performance thus ensuring that the highest ethical standards are met within the workplace. The Code sets out four of the basic principles on which the Group operates:

1. Compliance with relevant laws and regulations;

2. Leaders at all levels should be ethical role models;

3. A safe and healthy workplace environment should always be maintained; and 4. Integrity, Honesty and Trust are the basis of good business.

ANSA McAL’s New Code of Ethics & Conduct was released in November 2019

All employees and Directors across the ANSA McAL Group are expected to abide by the Group’s Code of Ethics and Conduct.

Our #SPEAKOUT campaign reinforced the Group’s position that all employees should be encouraged to speak out openly when they encounter unethical or unlawful behaviour at work. In accordance with the Code, retaliation of any kind against someone who provides information about misconduct in the workplace will not be tolerated. However, one may choose to remain anonymous by logging on to The Silent Whistleblower website or by calling the free #SPEAKOUT hotline.

A copy of the Code of Ethics and Conduct is available on the ANSA McAL website at www.ansamcal.com.

BOARD COMPOSITION

As at December 31st, 2019, the Board comprised 11 Directors, 3 of whom are independent.

The members of the Board as at December 31st, 2019 are:

1. Mr. A. Norman Sabga LLD (Hon.) UWI; (h.c.) UTT – Chairman (Executive)

2. Mr. David Sabga – Deputy Chairman (Executive)

3. Mr. Andrew Sabga – Chief Executive Officer (Executive)

4. Mr. Anthony Sabga III – Executive

5. Mr. Ray A. Sumairsingh – Executive

6. Ms. Teresa White – Executive

7. Mr. Nicholas Mouttet – Executive

8. Mr. Larry Howai – Executive

9. Mr. Anthony Phillip – Independent

10. Mr. Mark Morgan – Independent

11. Mr. David Dulal-Whiteway – Independent

RESPONSIBILITIES OF THE BOARD

The main responsibilities of the Board are:

1. Selecting, evaluating and compensating the Group Chief Executive Officer;

2. Reviewing, monitoring and approving significant financial and business strategies and major corporate actions;

3. Reviewing and approving the overall Corporate Strategy of the Company;

4. Assessing major risks facing the Company and reviewing for mitigation strategies;

5. Ensuring that processes are in place for maintaining the sustainability, integrity of the Company, its financial statements and compliance with all laws and ethical standards of business; and

6. Overseeing the Company’s Management succession plans.

The Board delegates to the Group Chief Executive Officer the general management, supervision and control of the business and general affairs of the Company, including the execution of Board directives and resolutions. The Board also delegates to the Group Chief Executive Officer the formulation and implementation of the Company’s overall Corporate Strategy as approved by the Board.

Corporate Governance Report 2019

Posters communication from the #SPEAKOUT campaign

The Board’s Charter addressing the Board’s main responsibilities is available on the Group’s website at www.ansamcal.com.

INDEPENDENCE OF DIRECTORS

To increase the quality of the Board’s oversight and to lessen the possibility of damaging conflicts of interest, the Board has decided to work towards achieving at least 50 per cent independent director membership.

An independent Director is a Non-Executive Director who is free from any business or other association that could materially interfere with –or could reasonably be perceived to materially

interfere with – the exercise of his/her independent judgement. The Board has a written Director Independence Policy which is available on the Group’s website at www.ansamcal.com.

COMMITTEES OF THE BOARD

There are two constituted Committees of the Board, the Governance Nominating and Remuneration Committee and the Audit Committee.

The Governance Nominating and Remuneration Committee (GNRC)

The GNRC was established by the Board in November 2019. As at December 31st, 2019 all

members of the Committee are independent Directors as follows:

• Mr. Anthony Phillip (Chairman)

• Mr. Mark Morgan

• Mr. David Dulal-Whiteway

The GNRC’s role is to advise the Board by way of recommendations regarding the selection of suitable candidate members for the Board, its sub-committees, as well as the Boards of Directors, sub-committees of all of the Group’s subsidiaries, and regarding any change in their composition. The Committee ensures that the Group maintains and implements an effective and up-to-date Corporate Governance Framework in support of the Board’s oversight responsibilities and oversees Board and Executive remuneration in accordance with the Company’s policy objectives.

Our Board is committed to a strong director succession planning process designed to provide for a highly independent, well-qualified Board, with the diversity, experience and background to be effective and to provide strong oversight. The Board looks for its current and potential directors to have a broad range of skills, education, experiences and qualifications that can be leveraged in order to benefit ANSA McAL and its shareholders.

The Committee met once in 2019 shortly after its creation in November.

The GNRC’s Charter addressing the Committee’s main responsibilities is available on the Group’s website at www.ansamcal.com

AUDIT COMMITTEE

The Audit Committee assists the Board in fulfilling its oversight responsibilities for the financial reporting process, the system of internal control over financial reporting, the audit process and the Group’s process for monitoring compliance with laws and regulations. It also oversees the

Group’s risk policies and processes relating to financial statements and financial reporting.

As at December 31st, 2019, the members of the Audit Committee are in the majority independent as follows:

• Mr. David Dulal-Whiteway (Chairman)Independent

• Mr. Anthony Phillip – Independent

• Mr. Mark Morgan - Independent

• Mr. Larry Howai – Non-independent

The Committee met 4 times during 2019.

The Audit Committee’s Charter addressing the Committee’s main responsibilities is available on the Group’s website at www.ansamcal.com

The Committee reviewed and discussed the quarterly unaudited results, the annual audited financial statements and the audit plan with the Company’s Management and the external auditors.

Corporate Governance Report 2019

ANSA McAL Limited was the Ambassador sponsor, in collaboration with Guardian Media Limited as media partner, of the Caribbean Corporate Governance Conference 2019 hosted by Aegis Business Solutions Limited.

Focused

on the environment with our Quarry

Rehabilitation Project

In 2019, as part of Carib Glassworks’ continued commitment to the environment, they partnered with the Environmental Management Authority (EMA) in the quarry rehabilitation of the Matura sand plant.

CGL was the first privately managed quarry to partner with the EMA.

This project, which sought to reduce and reverse land degradation associated with quarry operations, began on Tuesday 19 th November 2019 and was a collaborative effort undertaken through the EMA’s Integrating Water, Land and Ecosystems Management (IWEco) initiative.

The only manufacturer of glass packaging in the Caribbean, CGL was the first privately managed quarry to partner with the EMA. Seeking to revitalise its location with the natural corrective measures IWEco implements, CGL established a one-hectare rehabilitation site at their Matura quarry, the source of silica used for all of the factory’s glass bottles, specifically for this purpose.

Here the aim was to restore natural vegetation, reduce sedimentation and flood risk, and restore the ecological function of exhausted or abandoned pits at the quarry which has been in operation since 1972.

CGL’s decision to partner with IWEco would not only improve the ecosystem around the quarry site but would also see the empowerment of many unemployed individuals. Here persons, mainly women, from communities ranging from Valencia to Sangre Grande underwent several months of in-depth training. Developed in association with the Trust for Sustainable Livelihoods and IAMovement, in collaboration with the United Nations Development Programme-Small Grants Programme, trainees focused on IWEco’s theoretical and practical quarry rehabilitation techniques to revive these environments.

Through interventions that included introducing specific flora for species enrichments, growing vetiver plants for soil and slope rehabilitation and the installation of live check dams, the rehabilitation of the Matura sand mine was deemed a tremendous success. Coming off of this achievement and maintaining their dedication to the ecosystems around them, Carib Glassworks will be reforesting another hectare of the Matura sand mine in 2020.

“As we grow and manoeuvre the currents of an unpredictable world, we will remain conscious of our duty to serve and strengthen the interests of our people, our country and our Caribbean region.”

– ANTHONY N. SABGA III GROUP CHIEF EXECUTIVE OFFICER

January

Over sixty employees received Group Vouchers to assist them in rebuilding their lives after the devastating floods that occurred in Trinidad in late 2018

Carib Brewery Ltd. was awarded the National Union Government and Federation Workers (NUGFW) 2018 Employer of the Year

ANSA McAL supported Success Laventille Secondary School with the Cuba Trinidad and Tobago Cultural Exchange initiative

Consolidated Finance Co. Ltd. opened its new office in Barbados

Carib Brewery Ltd. welcomed Coors to the ANSA McAL Family

dispatched

March

International feminine protection brand ‘Always’, distributed by Alston’s Marketing Company Ltd (AMCO), launched the ‘End Period Poverty’ campaign at the ANSA McAL Hospitality Suite, Queen’s Park Oval.

ANSA McAL Ltd. supported one of its own family members, John Barkley in Sports Management

ANSA Coatings Ltd.

13 containers of paint to a Cuban Company, Maprinter

For the first time since its inception in 2005, The Anthony

Caribbean Awards for Excellence was staged in Barbados on Saturday 30th March, 2019

N. Sabga

The Anthony N. Sabga Caribbean Awards for Excellence

April

TATIL Life and TATIL General employees attended the first Responsive, Easy, Appreciative, Convenient, Hospitable (REACH) Seminar at NAPA, Port of Spain

ANSA McAL Head Office was full of ‘egg-citement’ with the debut of its inter departmental Easter Egg Hunt

Carib Glassworks Ltd. promoted Health and Safety in the workplace

ANSA McAL Head Office said THANK YOU to Administrative Professionals at a well-deserved luncheon at Aioli restaurant

The Rotary Club of Central POS received support from ANSA McAL and Standard Distributors Ltd. towards their first Bingo Night Fundraiser

ANSA McAL Sports & Family Mini Olympics

5K - Winners Circle

Gary Jagadhar Winner of the Male Employee Category

Adohar Nanton Winner of the Male 12 and Under Category

Kelvin Johnson Winner of the Male Open Category

Mr. Nabeel Hadeed Winner of the Male 60 and Over Category

Sarah DeFreitas Winner of the Female Employee Category

Christine Regis 2nd Place Winner of the Female Category

Melania Nanton Winner of the Female 12 and Under Category

Ms. Patricia Bhagwandeen Winner of the Female 60 and Over Category

Kareem Mason 2nd Place Winner of the Male Open Category

Mr. Lincoln Felix 2nd Place Winner of the Male 60 and Over Category

Yinkling Solomon Winner of the Female Open Category

2nd

Kids Zone

Football Fever

Dance-Past: Winners Circle

1st Place Winners of the mas Dance Past, Financial Services Sector

2nd Place Winners of the Mas Dance Past, Carib Brewery

May/June

At its 90th AGM held at Radisson Hotel, the Group reported a five per cent increase in ANSA McAL’s Group Profit Before Tax (PBT) for 2018 when compared to 2017

ANSA McAL Group partnered with the Arthur Lok Jack Global School of Business for their Distinguished Leadership and Innovation Conference

The ANSA McAL Group through ABEL Building Solutions facilitated the donation of 45 pallets of Classic Clay Blocks towards the Sea Lots and Gonzales communities which were devasted by fire in 2018

The ANSA McAL Group participated in the launch of the ‘I Support our Service Prison Officers’ campaign where Officers were issued ANSA McAL Premier Cards for Group discounted purchases

Chairman, Mr. A. Norman Sabga LLD (Hon.) UWI; (h.c.) UTT delivered the feature address on Competitiveness and Regional Economic Growth at AMCHAM’s AGM

Berger Paints Jamaica Ltd. was proud to participate in the annual Food for the Poor 5k Run/Walk

results

A panel of Executives attended the ANSA McAL Talent Day at Kapok Hotel to discuss talent development programmes for the Group

ANSA Merchant Bank, TATIL and TATIL Life delivered encouraging

at its AGM despite regional economic shifts, natural disasters and volatile international markets

July

The ANSA McAL Group participated in the 8th Biennial Conference themed “Jamaica and the Diaspora – Building Pathways for Sustainable Development” at the Jamaica Conference Centre, Kingston

ABS, ANSA Coatings, ANSA Motors, ANSA Polymer, Carib Brewery Ltd. and the Financial Services Sector exhibited at the TTMA’s annual Trade and Investment Convention (TIC)

Hundreds turned up for the Construction Sector Career Fair at the Gazebo, Grand Bazaar

After 10 years, ABEL Building Solutions brought their multi-faceted brands under one umbrella and launched the ANSA McAL Construction Sector

Emancipation Day was recognised by employees of the Group

ANSA McAL assisted Sgt. Michelle Lewis in attending the International Association of Women Police 57th Annual Training Conference in Alaska

Children of employees from ANSA McAL Beverage Sector attended the Smalta annual kids camp

ANSA McAL’s Head Office, HSE and Carib Brewery Ltd. came together for ‘Together We are Family Part 2’ - Curry Duck Competition

The Group sponsored trophies and plaques towards St. Margaret’s Youth Steel Orchestra’s Annual Youth Pan Extravaganza

The ANSA McAL Group sponsored different art supplies towards Camp D.R.E.A.M at Nelson Street Boys R.C. School

ANSA McAL supported Mr. Hugh Scott – Logistics Manager – ANSA Polymer Ltd. by contributing towards his daughter’s expenses to represent Trinidad and Tobago at Carifesta 2019

Illumination

For the third successive year,

presented

ANSA McAL

Trinidad and Tobago with ILLUMINATION, a pyrotechnical firework display in celebration of the nation’s 57th Independence at the Queen’s Park Savannah and San Fernando Hill

August

McAL supported The

2019

Mr. A. Norman Sabga LLD (Hon.) UWI; (h.c.) UTT disclosed the Group’s unaudited results for the six months ended June 30, 2019 at a Stockbrokers’ Meeting held at the Group’s headquarters

ANSA

Walcott Festival

- TI Jean His Production, an iconic Caribbean production

ANSA McAL, through ANSA Merchant Bank Ltd. and ANSA McAL Trading (Guyana) Ltd. partnered with the Georgetown Chamber of Commerce and Industry (GCCI) for a two-day Business Development Forum at Pegasus Hotel, Guyana

Group HR hosted its Champions Mixer for young professionals interested in participating in the ANSA McAL Champions Programme

McAL supported the youth centric Heroes Convention 7 held at NAPA

Standard Distributors Ltd. launched its new concierge service ‘Beyond the Standard’ which offers an enhanced customer experience

‘We ANSA Women’ participated in the Scotiabank Women Against Breast Cancer 5k

ANSA

Carib Glassworks in collaboration with SWMCOL and 14 other Group companies including AMCO, ABEL, ANSA McAL Head Office, AML Trading, ANSA Merchant Bank, Alston’s Shipping, Alston’s Travel, Carib Brewery Ltd., Guardian Media Ltd., Standard Distributors and Tatil participated in a coastal clean-up at Chagville Beach, where 1,617lbs of trash was collected

The ANSA McAL Group hosted key business clients at the ANSA McAL Hospitality Suite, for the annual CPL action

Carib Brewery Ltd. celebrated a historic occasion with the first commercial brew of its newly acquired Coors Beer

Executive Chairman of the ANSA McAL Group, Mr. A. Norman Sabga LLD (Hon.) UWI; (h.c.) UTT, was conferred a second honorary Doctor of Laws in the areas of business and entrepreneurship from the University of Trinidad and Tobago

The ANSA McAL Foundation donated TTD$81,775.00 to the Esimaje Foundation to facilitate the construction of a new science room at the Nelson Street Boys’ R.C. School in honour of the late Dr. Anthony N. Sabga O.R.T.T.

ANSA McAL was a major sponsor of the Caribbean Corporate Governance Conference aimed at offering insights and guidance to business leaders in the areas of corporate and governance best practices

Carib Glassworks Ltd. and the Environmental Management Authority participated in a rehabilitative tree planting exercise at the Matura sand plant

TATIL and TATIL Life launched their nationwide social Initiative, “Diabetes: A Family Concern” with a Unity Event, at the TATIL Building

ANSA McAL was the Gold Sponsor of Heroes Convention 7, a flagship event which provides opportunities for youths, stakeholders and other collaborative entities involved in youth development

The ANSA McAL Group presented a new AIWA 50-inch smart LED television for the people of Woodford Square, Port of Spain to His Worship, Mayor Joel Martinez, courtesy Standard Distributors Ltd.

Divali – the festival of lights was recognised throughout the Group

The ANSA McAL Family celebrated Christmas together

ANSA McAL donated food items to the Trinidad and Tobago Police Service Victim and Witness Support Unit’s (VWSU) Christmas Kindness Project 2019

CORPORATE INFORMATION

BOARD OF DIRECTORS

A. Norman Sabga, LLD (Hon.) UWI; (h.c.) UTT (Chairman)

David B. Sabga (Deputy Chairman)

Andrew N. Sabga (Deputy Chairman)

Anthony N. Sabga III (Group Chief Executive Officer)

Ray A. Sumairsingh

Teresa White

Nicholas V. Mouttet

Anthony E. Phillip

Mark J. Morgan

Larry Howai

David Dulal-Whiteway

CORPORATE SECRETARY

Frances Bain-Cumberbatch

REGISTERED OFFICE

11th Floor, TATIL Building, 11 Maraval Road, Port of Spain.

REGISTRAR AND TRANSFER OFFICE

The Trinidad and Tobago Central Depository Limited 10th Floor, Nicholas Tower, 63-65 Independence Square, Port of Spain.

ATTORNEYS-AT-LAW

J. D. Sellier & Co.

129-132 Abercromby Street, Port of Spain.

M. Hamel-Smith & Co. Eleven Albion Corner Dere and Albion Streets, Port of Spain.

AUDITORS

Ernst & Young 5-7 Sweet Briar Road, Port of Spain.

PRINCIPAL BANKERS

Republic Bank Limited

59 Independence Square, Port of Spain.

First Citizens Bank Limited

50 St. Vincent Street, Port of Spain.

Scotiabank Trinidad and Tobago Limited

Scotia Centre 55-58 Richmond Street, Port of Spain.

RBC Royal Bank of (Trinidad and Tobago) Limited

55 Independence Square, Port of Spain.

AUDIT COMMITTEE

David Dulal-Whiteway (Chairman)

Anthony E. Phillip

Mark J. Morgan

Larry Howai

GOVERNANCE, NOMINATING AND REMUNERATION COMMITTEE

Anthony E. Phillip (Chairman)

Mark J. Morgan

David Dulal-Whiteway

REPORT OF THE DIRECTORS

The Directors have pleasure in presenting their Report to the Members together with the Financial Statements for the year ended December 31, 2019.

RESULTS FOR THE YEAR 2019

Income Attributable to Shareholders of the Parent Company 644,846 Deduct: Dividends Paid

(310,319)

DIVIDENDS

An interim dividend of 30 cents per share was paid, however, due to the COVID-19 pandemic crisis which has resulted in extended business curtailment, the Directors believe it to be prudent not to recommend a final dividend for the year ended December 31, 2019. Therefore, this makes a total distribution of thirty cents on each share for 2019 (2018: $1.80).

DIRECTORS

In accordance with the By-Law No.1, Paragraph 4.04, Mr. Andrew N. Sabga (Deputy Chairman), Mr. Anthony N. Sabga III (Group Chief Executive Officer), Ms. Teresa White, Mr. Nicholas V. Mouttet, Mr. Anthony E. Phillip and Mr. Mark J. Morgan, retire from the board and being eligible, offer themselves for re-election.

AUDITORS

Ernst & Young have expressed their willingness to continue in office.

DIRECTORS’ AND SENIOR OFFICERS’ INTERESTS

DIRECTORS AND SENIOR OFFICERS

A. Norman Sabga

David B. Sabga

Andrew N. Sabga

Anthony N. Sabga III

Ray A. Sumairsingh

Teresa White

Nicholas V. Mouttet

Anthony E. Phillip

Mark J. Morgan

Larry Howai

David Dulal-Whiteway

Frances Bain-Cumberbatch

Walter Keith Welch

Nicholas Jackman

NOTES:

(a) Mr. A. Norman Sabga has a beneficial interest in ANSA Investments Limited, the major shareholder of ANSA McAL Limited.

(b) Mr. David B. Sabga has a beneficial interest in ANSA Investments Limited, the major shareholder of ANSA McAL Limited.

(c) Mr. Andrew N. Sabga has a beneficial interest in ANSA Investments Limited and has a beneficial interest in 360,933 shares in the ANSA McAL Limited Employee Share Ownership Plan (“ESOP”). ANSA Merchant Bank Limited is the trustee of the ESOP.

(d) Mr. Anthony N. Sabga III also has a beneficial interest in 53,122 shares in the ESOP.

(e) Ms. Teresa White has a beneficial interest in 31,358 shares in the ESOP.

(f) Mrs. Frances Bain-Cumberbatch has a beneficial interest in 6,864 shares in the ESOP.

(g) Mr. Walter Keith Welch, Ag. Head of Group Treasury of ANSA McAL Limited, also has a beneficial interest in 9,894 shares in the ESOP.

(h) ANSA Investments Limited, MASA Investments Limited, Norman Finance Developments Limited, Anthony N. Sabga Limited and Alstons Limited are all connected persons.

DIRECTORS’, SENIOR OFFICERS’ AND CONNECTED PERSONS’ INTERESTS

NAME SHAREHOLDING AS AT DECEMBER 31, 2019

A. Norman Sabga

David B. Sabga

Andrew N. Sabga

Anthony N. Sabga III

Ray A. Sumairsingh

Teresa White

Nicholas V. Mouttet

Anthony E. Phillip

Mark J. Morgan

Larry Howai

David Dulal-Whiteway

Frances Bain-Cumberbatch

Walter Keith Welch

Nicholas Jackman

SHAREHOLDING OF CONNECTED PERSONS AS AT DECEMBER 31, 2019

108,823,631 107,753,490 103,673,223

1,000

ANSA RELATIONSHIP

The ANSA Group collectively is the majority shareholder of ANSA McAL Limited. In 1986, the ANSA Group injected $30 million into McEnearney Alstons Limited (now called ANSA McAL Limited) and in 1990 it invested another $10 million to acquire a further 10 million shares. The ANSA Group’s investment represented fresh capital rather than the purchase of existing shares.

THE ANSA GROUP INCLUDES THE FOLLOWING COMPANIES:

• ANSA Investments Limited

• Anthony N. Sabga Limited

• Bayside Towers Limited

• Norman Finance Developments Limited

• MASA Investments Limited

• Farmhouse Industries Limited

• Standard Graphics Supplies Limited

ANSA McAL GROUP COMPANIES, BUSINESSES AND PRODUCTS

AUTOMOTIVE

ANSA MOTORS LIMITED

(formerly ANSA AUTOMOTIVE LIMITED)

100%

Ford, Honda, Mitsubiushi, Jaguar & Landrover Motor Vehicles; Industrial & Agricultural Equipment; Used Vehicles; Long Term Leasing of Motor Vehicles, Industrial & Agricultural Equipment, Short Term Rentals (Europcar) & Chauffeur Services

ANSA MOTORS GUYANA INC.

100%

Suzuki Motor Vehicles

ANSA MOTORS (BARBADOS) LIMITED

(formerly McENEARNEY QUALITY INC.)

100%

Mazda, Kia, Ford, BMW & Mini Cooper Motor Vehicles

BEVERAGE

CARIBBEAN DEVELOPMENT

COMPANY LIMITED

80%

Carib & Stag Lager Beers, Stouts & Ciders, Shandy and Soft Drinks

CARIB BREWERY LIMITED

80%

Carib & Stag Lager Beers, Stouts & Ciders, Shandy and Soft Drinks

CARIB BREWERY (ST. KITTS & NEVIS) LIMITED

51.18%

Carib & Stag Lager Beers, Stouts & Shandy

CARIB BREWERY CANADA LIMITED (Canada)

80%

Carib & Stag Lager Beers, Stouts & Shandy

DCI MIAMI, INC.

100%

Distributor of Brewery Products

GRENADA BREWERIES LIMITED

55.54%

Carib & Stag Lager Beers, Stouts, Shandy & Soft Drinks

INDIAN RIVER BEVERAGE CORPORATION

Trading as: FLORIDA BEER COMPANY

100%

Ales, Lagers and Ciders

CONSTRUCTION

ABEL BUILDING SOLUTIONS (ABS)

100%

Clay Products, Steel, Aluminium, PVC, Building Products, Air Conditioning Solutions

ANSA COATINGS LIMITED

100%

Automotive, Industrial, Marine & Decorative Paints (Penta & Sissons, Glidden, Nexa, Devoe, International & Aquabase Brands)

ANSA McAL ENTERPRISES LIMITED

100%

Construction Products and Services

ANSA TECHNOLOGIES LIMITED

100%

Drilling Fluids, Tools, Equipment & Related Engineering Services to the Oil Industry

ANSA McAL GROUP COMPANIES, BUSINESSES

BERGER PAINTS BARBADOS LIMITED

100%

Decorative Paints, Industrial Paints & Furniture Finishes

BERGER PAINTS JAMAICA LIMITED

54.12%

Decorative Paints, Industrial Paints & Furniture Finishes

BESTCRETE AGGREGATES LIMITED

100%

Concrete Products

BRICKFOURCE LIMITED

100%

Construction Services

CARIBBEAN ROOF TILE COMPANY LIMITED

100%

Roof Tiles

SISSONS PAINTS (GRENADA) LIMITED

100%

Decorative Paints

DISTRIBUTION

ALSTONS MARKETING COMPANY LIMITED

100%

Pharmaceuticals, Foodstuffs, Wines & Spirits, Household Products

ANSA McAL TRADING (GUYANA) LIMITED

100%

Pharmaceuticals, Foodstuffs, Brewery, Wines & Spirits and Household Products

AND PRODUCTS

BRYDEN STOKES LIMITED (Barbados)

100%

General Wholesale, Distribution, Pharmaceuticals, Wines & Spirits and Brewery

TOBAGO MARKETING COMPANY LIMITED

100%

Pharmaceuticals, Foodstuffs, Brewery, Wines & Spirits and Household Products

T.WEE

100%

Foodstuffs, Wines & Spirits

FINANCIAL SERVICES

ANSA MERCHANT BANK LIMITED

82.48%

Investment & Merchant Bank

ANSA RE LIMITED

100%

Reinsurance Services

ANSA SECURITIES LIMITED

82.48% Investments

CONSOLIDATED FINANCE CO. LIMITED (Barbados)

82.48%

Hire Purchase, Finance, Fixed Deposits, Lease Rental

TATIL LIFE ASSURANCE LIMITED

82.48%

Life Insurance, Pensions, Mortgages, Critical Illness

ANSA McAL GROUP COMPANIES, BUSINESSES AND PRODUCTS

TRINIDAD AND TOBAGO INSURANCE LIMITED

82.48%

Motor, Property, Accident & Health, Marine and Group Health Insurance

TATIL RE LIMITED

82.48%

Reinsurance Services

TRIDENT INSURANCE COMPANY LIMITED

100%

Insurance Company

MANUFACTURING

ANSA McAL CHEMICALS LIMITED

100%

Liquid Chlorine, Caustic Soda, Hydrochloric Acid & Bleach

ANSA POLYMER

100%

Flexible Plastic Packaging & Plastic Crates

ANSA COATINGS JAMAICA LIMITED

100%

Distribution Hub for Liquid Chlorine, Caustic Soda, Hydrochloric Acid, Bleach and other Products

CARIB GLASSWORKS LIMITED

100%

Glass Bottles

EASI INDUSTRIAL SUPPLIES LIMITED

100%

Caustic Soda Supplier

TRINIDAD MATCH LIMITED

100%

Safety Matches

TILAWIND S.A.

50%

Wind Farm

MEDIA

GUARDIAN MEDIA LIMITED

51.03%

Newspaper Publishers, Cable Television Programming: CNC3TM, Radio Broadcasting: TBC RADIO NETWORKTM (Aakash Vani 106.5FM, 95.1FM Remix, Sangeet 106.1FM, Sky 99.5AM, Slam 100.5FM and Vibe CT 105FM), Digital Billboards: THE BIG BOARD COMPANY TM

IRADIO INC. (Guyana)

100%

Radio Broadcasting: Mix 90.1FM

PURCHASING, LOGISTICS & TRAVEL

ALSTONS SHIPPING LIMITED

100%

Shipping, Air Cargo, Freight, Stevedoring & Inspection Services

ALSTONS TRAVEL

100%

Travel, Tour Services & Tour Operations

ANSA McAL TRADING INC. (United States of America)

100%

Procurement & Logistics Services, Marketing & Distribution (Kenmore, Sears, Diehard, Ford Motors Company Brands)

ANSA McAL (US) INC.

100%

Purchasing, Warehousing Services & Freight Forwarders

ANSA McAL GROUP COMPANIES, BUSINESSES AND PRODUCTS

RETAIL

ANSA McAL TRADING LIMITED (MBM)

100%

Office Equipment, Office Supplies & Business Machines

BRYDENS RETAIL INC. (Barbados)

52%

Stationery & Office Supplies

BRYDENS XPRESS OFFICE SUPPLIES INC. (Barbados)

52%

Office Supplies

STANDARD DISTRIBUTORS LIMITED

100%

Furniture & Equipment

STANDARD DISTRIBUTION & SALES (BARBADOS) LIMITED

100%

Furniture & Equipment

INTERMEDIATE HOLDING COMPANIES

ALSTONS LIMITED

100%

Intermediate Holding Company

AMCL HOLDINGS LIMITED

100%

Intermediate Holding Company

ANSA COATINGS INTERNATIONAL LIMITED

100%

Intermediate Holding Company

ANSA FINANCIAL HOLDINGS (BARBADOS)

LIMITED 82.48%

Intermediate Holding Company

ANSA McAL (BARBADOS) LIMITED 100%

Intermediate Holding Company

ANSA McAL BEVERAGES (BARBADOS) LIMITED (St. Lucia) 100%

Intermediate Holding Company

CCEF ANSA RENEWABLE ENERGIES HOLDINGS

LIMITED (Barbados-IBC) 50%

Intermediate Holding Company

CONCRETION LIMITED 100%

Intermediate Holding Company

DAVID MORRIN & SONS LIMITED 100%

Intermediate Holding Company

FONTANA LIMITED 100%

Intermediate Holding Company

McAL TRADING LIMITED (Barbados) 100%

Intermediate Holding Company

THE CARIBBEAN DEVELOPMENT COMPANY (ST. KITTS) LIMITED 100%

Intermediate Holding Company

ANSA McAL GROUP COMPANIES, BUSINESSES

AND PRODUCTS

Intermediate Holding Company

REAL ESTATE

BAYSIDE WEST LIMITED

Residential Development

B.E.H. HOLDINGS LIMITED

Commercial Property Rentals

GRAND BAZAAR LIMITED 40%

Owner & Operator of Shopping Malls

O’MEARA HOLDINGS LIMITED

Property Development

PROMENADE DEVELOPMENT LIMITED 100%

Commercial District Trade Centre

TRINIDAD

4

6

Intermediate Holding Company

ANSA McAL GROUP COMPANIES’ CONTACT INFORMATION

ANSA MOTORS LIMITED

(formerly ANSA AUTOMOTIVE LIMITED)

25 Richmond Street, Port of Spain, Trinidad.

Phone: (868) 625-2277 Fax: (868) 623-6882

E-mail: info@ansamotorstt.com

Website: www.ansamotorstt.com

Sector Head - Automotive: Jerome Borde

ANSA MOTORS GUYANA INC.

60-64 Industrial Site, Beterverwagting, East Coast Demerara, Guyana.

Phone: +592-220-0455

Website: www.suzukicaribbean.com

Director: Beverley Harper

ANSA MOTORS (BARBADOS) LIMITED

(formerly McENEARNEY QUALITY INC.)

Wildey Main Road, St. Michael, Barbados, BB14007.

Phone: (246) 467-2400 Fax: (246) 427-0764

E-mail: ivan.perez@mqi.bb

Website: www.mqi.bb

General Manager: Ivan Perez Vega

CARIBBEAN DEVELOPMENT COMPANY

LIMITED

Eastern Main Road, Champs Fleurs, Trinidad. Phone: (868) 645-2337 Fax 662-2231 to 2237

E-mail: askus@caribbrewery.com

Website: www.caribbrewery.com

Sector Head - Beverage: Peter Hall

CARIB BREWERY LIMITED

Eastern Main Road, Champs Fleurs, Trinidad.

Phone: (868) 645-2337 Fax 662-2231 to 2237

E-mail: askus@caribbrewery.com

Website: www.caribbrewery.com

Sector Head - Beverage: Peter Hall

CARIB BREWERY (ST. KITTS & NEVIS) LIMITED

Buckley’s Site, P.O. Box 1113, Basseterre, St. Kitts.

Phone: (869) 465-2309/2903

Fax: (869) 465-0902

E-mail: markwilkin@caribbrewery.com

Managing Director: Mark Wilkin

CARIB BREWERY CANADA LIMITED

681A Rue Marion, Joliette, Quebec J6E 8S3, Canada

Phone: (905) 331-5336 Fax: (905) 331-1663

Director: Andrew N. Sabga

DCI MIAMI INC.

11403 NW 39th Street, Doral, Florida 33178, USA.

Phone: (305) 591-0885 Fax: (305) 591-3104

E-mail: james.webb@dcimiami.com

President: James Webb

GRENADA BREWERIES LIMITED

Grand Anse, St. Georges, Grenada.

Phone: (473) 444-4248 Fax: (473) 444-4842

E-mail: gbl2spiceisle.com

Managing Director: Ron Antoine

INDIAN RIVER BEVERAGE CORPORATION

Trading as: FLORIDA BEER COMPANY

200 Imperial Blvd, Cape Canaveral, Florida 32920.

Phone: (321) 728-4114

E-mail: info@floridabeer.com

Website: www.floridabeer.com

President/Chief Executive Officer: James Webb

ANSA McAL GROUP COMPANIES’ CONTACT INFORMATION

CONSTRUCTION

ABEL BUILDING SOLUTIONS (ABS)

Building #2, Maingot Street, Mt. Hope, Trinidad.

Phone: (868) 665-2235 Ext. 3102/3103

Fax: (868) 223-1116

E-mail: abel.sales@ansamcal.com

Website: www.buildwithabs.com

Sector Head Construction: Adam Sabga

ANSA COATINGS LIMITED

ANSA McAL Industrial Park, 51-59 Tumpuna Road, Guanapo, Arima, Trinidad. Phone: (868) 643-2425-8 Fax: (868) 643-2509

E-mail: edwin.ramcharitar@ansamcal.com

Website: www.ansacoatings.com

General Manager: Edwin Ramcharitar

ANSA McAL ENTERPRISES LIMITED

Lightpole 4, Depot Road, Longdenville, Chaguanas, Trinidad.

Phone: (868) 665-2235 Fax: (868) 672-4309

E-mail: abel.sales@ansamcal.com

Website: www.abelbuildingsolutions.com

Sector Head Construction: Adam Sabga

ANSA TECHNOLOGIES LIMITED

40 Cipero Road, San Fernando, Trinidad. Phone: (868) 652–3571/3573

Fax: (868) 652–5575/6407

E-mail: ansatech@ansamcal.com

Website: www.ansatech.com

Sector Head Construction: Adam Sabga

BERGER PAINTS BARBADOS LIMITED

Exmouth Gap, Brandons St. Michael, Barbados, BB12069.

Phone: (246) 425-9073 Fax: (246) 228-0866

E-mail: info@Bergercaribbean.com

Website: www.bergerpaintscaribbean.com

General Manager: Kirk King

BERGER PAINTS JAMAICA LIMITED

256 Spanish Town Road, Kingston 11, Jamaica.

Phone: (876) 923-6229 Fax: (876) 923-5129

Consumer Enquiry or Technical Assistance: 1-(888)-4BERGER

E-mail: bergerja_marketing@bergercaribbean.com

Website: www.bergerpaintscaribbean.com

IG: BergerPaintsJamaica

Twitter: @BergerPaintsJA

General Manager: Shashi Mahase

BESTCRETE AGGREGATES LIMITED

LP# 4, Depot Road, Longdenville, Chaguanas, Trinidad. Phone: (868) 665-2235 Fax: (868) 672-4309

E-mail: abel.sales@ansamcal.com

Website: www.buildwithabs.com

Sector Head Construction: Adam Sabga

BRICKFOURCE LIMITED

LP# 4, Depot Road, Longdenville, Chaguanas, Trinidad.

Phone: (868) 665-2235 Fax: (868) 672-4309

Sector Head Construction: Adam Sabga

CARIBBEAN ROOF TILE COMPANY LIMITED

C/o ABS, Building #2, Maingot Street, Mt. Hope, Trinidad. Phone: (868) 665-2235 Fax: (868) 223-1116

E-mail: abel.sales@ansamcal.com

Website: www.buildwithabs.com

Sector Head Construction: Adam Sabga

SISSONS PAINTS (GRENADA) LIMITED

Frequente Industrial Park, Grand Anse, St. George’s, Grenada.

Phone: (473) 444-1457 Fax: (473) 444-1676

E-mail: chris.deallie@ansamcal.com

Website: www.sissonspaints.com

Managing Director: Christopher De Allie

ANSA McAL GROUP COMPANIES’ CONTACT INFORMATION

DISTRIBUTION

ALSTONS MARKETING COMPANY LIMITED

Uriah Butler Highway & Endeavour Road, Chaguanas, Trinidad.

Phone: (868) 671-2713 to 2720/4264 to 4267

Fax: (868) 671-2857

E-mail: abdel.ali@ansamcal.com

Website: www.amcott.info

Managing Dirctor: Abdel Ali

ANSA McAL RADING (GUYANA) LIMITED

Lot 60-64 Inustrial Area, Beterverwagting, East Coast,Demerara, Guyana.

Phone: (592) 220-0455

Fax: (592) 220-0796

E-mail: troy.cadogan@ansamcal.com

Website: www.facebook.com/AnsaMcAlGuyana

Managing Director: Troy Cadogan

BRYDEN STOKES LIMITED

Barbarees Hill, St. Michael, Barbados, BB12060.

Phone: (246) 431-2600 Fax: (246) 426-0755

E-mail: info@brydenstokes.com

Website: www.brydenstokes.com

Chief Executive Officer: Adrian Padmore

TOBAGO MARKETING COMPANY LIMITED

“Highmoor”, Plymouth Road, Scarborough, Tobago.

Phone: (868) 639-2455/2758

Fax: (868) 639-3624

E-mail: david.lumkong@ansamcal.com

General Manager: David Lum Kong

T.WEE

Piarco International Airport, Golden Grove Road, Piarco, Trinidad. Phone: (868) 369-5038/5228/5421

E-mail: support@tweedutyfree.com

Website: www.tweedutyfree.com

Managing Director: Abdel Ali

FINANCIAL SERVICES

ANSA MERCHANT BANK LIMITED

ANSA Centre, 11 Maraval Road, Port of Spain, Trinidad.

Phone: (868) 623-8672 Fax: (868) 624-8763

E-mail: ansabank@ansamcal.com

Website: www.ansabank.com

Managing Director: Gregory Hill

ANSA RE LIMITED

Meridian Place, Choc Estate, Castries, St. Lucia. Phone: (758) 50-7777 Fax: (758) 451-3079

E-mail: pkf@andw.lc

Director: M. Musa Ibrahim

ANSA SECURITIES LIMITED

ANSA Centre, 11 Maraval Road, Port of Spain, Trinidad.

Phone: (868) 623-8672 Fax: (868) 624-8763

Managing Director: Gregory Hill

CONSOLIDATED FINANCE CO. LIMITED

Hastings Main Road, Christ Church, Barbados. Phone: (246) 467-2350 Fax: (246) 426-8626

E-mail: info@consolidated-finance.com

Website: www.consolidated-finance.com

President/CEO: Rolf Phillips

TATIL LIFE ASSURANCE LIMITED

11 Maraval Road, Port of Spain, Trinidad.

Phone: (868) 628-2845

Fax: (868) 628-0035/6545

E-mail: life@tatil.co.tt

Website: www.tatil.co.tt

Managing Director: Ronald Milford

ANSA McAL GROUP COMPANIES’ CONTACT INFORMATION

TRINIDAD AND TOBAGO INSURANCE LIMITED

11 Maraval Road, Port of Spain, Trinidad.

Phone: (868) 628-2845

Fax: (868) 628-0035/6545

E-mail: info@tatil.co.tt

Website: www.tatil.co.tt

Managing Director: M. Musa Ibrahim

TATIL RE LIMITED

Meridian Place, Choc Estate, Castries, St. Lucia.

Phone: (758) 50-7777 Fax: (758) 451-3079

E-mail: pkf@andw.lc

Director: M. Musa Ibrahim

TRIDENT INSURANCE COMPANY LIMITED

Trident Insurance Financial Centre Highway 7, Hastings, Christ Church, Barbados, BB15154.

Phone: (246) 431-2347 Fax: (246) 427-5750

Website: www.tridentins.com

Interim General Manager: Vijay Seudath

MANUFACTURING

ANSA McAL CHEMICALS LIMITED

North Sea Drive, Point Lisas Industrial Estate, Savonetta, Trinidad.

Phone: (868) 636-9918/5380

Fax: (868) 636-9931

E-mail: derek.decaires@ansamcal.com

Website: www.ansamcalchemicals.com

Managing Director: Derek De Caires

ANSA POLYMER

ANSA McAL Industrial Park, Tumpuna Road South, Guanapo, Arima, Trinidad. Phone: (868) 643-3137 Fax: (868) 643-1254

E-mail: ian.mitchell@ansamcal.com

Website: www.ansapolymer.com

Managing Director: Ian Mitchell

ANSA COATINGS JAMAICA LIMITED

Sagicor Industrial Complex, 7-9 Norman Road, Kingston CSO, Jamaica. Phone: (876) 630-1313/ (876) 930-7044

Director: Andy Mahadeo

CARIB GLASSWORKS LIMITED

Eastern Main Road, Champs Fleurs, Trinidad.

Phone: (868) 662-2231 to 2237

Fax: (868) 663-1779

E-mail: marketing@caribglass.com

Website: www.caribglass.com

Managing Director: David Hadeed

EASI INDUSTRIAL SUPPLIES LIMITED

North Sea Drive, Point Lisas Industrial Estate, Savonetta, Trinidad. Phone: (868) 636-3111 Fax: (868) 636-7977

E-mail: operations.easi@ansamcal

General Manager: Shivanand Maharaj

TRINIDAD MATCH LIMITED

Cor. Gordon & Maingot Streets, Mt. Hope, Trinidad. Phone: (868) 638-1974 Fax: (868) 675-0084

E-mail: marc.hadeed@ansamcal.com

General Manager (Ag.): Marc Hadeed

TILAWIND S.A.

Guanacaste, Tilarán, Santa Rosa

El Pueblo Los Ángeles.

Phone/Fax: (506)2205-3810

President: Mr. Fernando Zúñiga

ANSA McAL GROUP COMPANIES’ CONTACT INFORMATION

MEDIA

GUARDIAN MEDIA LIMITED

Port of Spain Office: 22-24 St. Vinent Street, Port of Spain, Trinidad.

Chaguanas Office: Guardian Building, 4-10 Rodney Road, Endeavour, Chaguanas, Trinidad.

Phone: (868) 225-4465 Fax: (868) 225-3147

E-mail: newsroom@guardian.co.tt

Website: www.guardian.co.tt

Managing Director: Nicholas Sabga

IRADIO INC.

28 Garnett & Delph Avenue, Campbellville, Georgetown, Guyana.

Phone: (592) 227-2826/2847

Website: www.mix901fm.com

Director: Beverley Harper

PURCHASING, LOGISTICS & TRAVEL

ALSTONS SHIPPING LIMITED

Head Office: Building #10, ANSA McAL Center, Uriah Butler Highway & Endeavour Road, Chaguanas, Trinidad.

POS Office: 3rd Floor GML Building, 22-24 St. Vincent Street, Port of Spain, Trinidad. Phone: (868) 225-4275

E-mail: asladmin@ansamcal.com

Website: www.alstonsshippingtt.com

General Manager: Marlainer Deslandes

ALSTONS TRAVEL LIMITED

3rd Floor, Guardian Media Building, 22-24 St. Vincent Street, Port of Spain, Trinidad.

Phone: 1-868-225-4610

E-mail: loripeggy.singh@ansamcal.com

Supervisor: Lori Peggy Singh

ANSA McAL TRADING INC.

11403 NW 39th Street, Miami, FL 33178, USA. Phone: (305) 599-8766 Fax: (305) 599-8917

E-mail: customerservice@ansamcalus.com

Website: www.ansamcaltrading.com

President: Wendell Beckles

ANSA McAL (US) INC.

11403 NW 39th Street, Miami, FL 33178, USA.

Phone: (305) 599-8766 Fax: (305) 599-8917

E-mail: customerservice@ansamcalus.com

Website: www.ansamcalus.com

President: Wendell Beckles

RETAIL

ANSA McAL TRADING LIMITED (MBM)

34–36 Richmond Street, Port of Spain, Trinidad. Phone: (868) 625-1041 to 1044

Fax: (868) 625-0086

E-mail: mbm.sales@ansamcal.com

Website: www.mbm-tt.net

Managing Director: Graeme Ottley

BRYDENS RETAIL INC.

Victoria Street, Bridgetown, Barbados. Phone: (246) 431–2600/2648

Fax: (246) 426–3556

E-mail: happyhelp@brydensxpress.com

General Manager: Nicholas Thomas

BRYDENS XPRESS (OFFICE SUPPLIES) INC.

Lower Estate, St Michael, Barbados, BB19188. Phone: (246) 431-2600/2646

Fax: (246) 426-3556

E-mail: happyhelp@brydensxpress.com

Website: www.brydensxpress.com

General Manager: Nicholas Thomas

ANSA McAL GROUP COMPANIES’ CONTACT INFORMATION

STANDARD DISTRIBUTORS LIMITED

ANSA McAL Centre, Endeavour Road, Chaguanas, Trinidad.

Phone: (868) 299-0219 Fax: (868) 665-6774

E-mail: kathleen.galy@ansamcal.com

Website: www.standardtt.com

Managing Director: Kathleen Galy

STANDARD DISTRIBUTION AND SALES (BARBADOS) LIMITED

Tudor Street, Bridgetown, Barbados.

Phone: (246) 430-7000 Fax: (246) 427-6844

E-mail: katrina.newton@standard.bb

Chief Executive Officer: Katrina Newton

INTERMEDIATE HOLDING COMPANIES

ALSTONS LIMITED

11th Floor, TATIL Building, 11 Maraval Road, Port of Spain, Trinidad.

Phone: (868) 625-3670 Fax: (868) 624-8753

E-mail: ansamcal@tstt.net.tt

Director: A. Norman Sabga, LLD (Hon.) UWI; (h.c.) UTT

AMCL HOLDINGS LIMITED

McEnearneyQuality Complex, Wildey, St. Michael, Barbados, BB14007. Phone: (246) 434-2900 Fax: (246) 228-1619

E-mail: headoffice@mcalbds.com

Director: Nicholas V. Mouttet

ANSA COATINGS INTERNATIONAL LIMITED

Meridian Place, Choc Estate, Castries, St. Lucia. Phone: (758) 50-7777 Fax: (758) 451-3079

E-mail: pkf@andw.lc

Chairman: Ray A. Sumairsingh

ANSA FINANCIAL HOLDINGS (BARBADOS)

LIMITED

McEnearney Quality Complex, Wildey, St. Michael, Barbados, BB14007. Phone: (246) 434–2900 Fax: (246) 228–1619

E-mail: headoffice@mcalbds.com

Director: Nicholas V. Mouttet

ANSA McAL (BARBADOS) LIMITED

McEnearney Quality Complex, Wildey, St. Michael, Barbados, BB14007.

Phone: (246) 434-2900 Fax: (246) 228-1619

E-mail: headoffice@mcalbds.com

President/CEO: Nicholas V. Mouttet

ANSA McAL BEVERAGES (BARBADOS) LIMITED

Meridian Place, Choc Estate, Castries, St. Lucia. Phone: (758) 450-7777 Fax: (758) 451-3079

E-mail: pkf@candw.lc

Directors: Ray A. Sumairsingh & Anthony Sabga III

CCEF ANSA RENEWABLE ENERGIES

HOLDINGS LIMITED

Suite 1, Ground Floor, The Financial Services Centre, Bishop’s Court Hill, St. Michael, Barbados, BB14004.

Phone: (246) 621-0760

Director: Nicholas Jackman

CONCRETION LIMITED

11th Floor, TATIL Building, 11 Maraval Road, Port of Spain, Trinidad. Phone: (868) 625-3670 Fax: (868) 624-8753

E-mail: ansamcal@tstt.net.tt

Director: A. Norman Sabga, LLD (Hon.) UWI; (h.c.) UTT

DAVID MORRIN & SONS LIMITED

69 Independence Square, Port of Spain, Trinidad.

Director: A. Norman Sabga, LLD (Hon.) UWI; (h.c.) UTT

ANSA McAL GROUP COMPANIES’ CONTACT INFORMATION

FONTANA LIMITED

11th Floor, TATIL Building, 11 Maraval Road, Port of Spain, Trinidad.

Phone: (868) 625-3670 Fax: (868) 624-8753

E-mail: ansamcal@tstt.net.tt

Director: A. Norman Sabga, LLD (Hon.) UWI; (h.c.) UTT

McAL TRADING LIMITED

McEnearney Quality Complex, Wildey, St. Michael, Barbados, BB14007. Phone: (246) 434-2900 Fax: (246) 228-1619

E-mail: headoffice@mcalbds.com

Director: Nicholas V. Mouttet

THE CARIBBEAN DEVELOPMENT COMPANY (ST. KITTS) LIMITED

Buckley’s Site, P.O. Box 1113, Basseterre, St. Kitts. Phone: (869) 465-2309 Fax: (869) 465-0902

E-mail: markwilkin@caribbrewery.com

Managing Director: Mark Wilkin

VANALTA LIMITED

11th Floor, TATIL Building, 11 Maraval Road, Port of Spain, Trinidad. Phone: (868) 625-3670 Fax: (868) 624-8753

E-mail: ansamcal@tstt.net.tt

Director: A. Norman Sabga, LLD (Hon.) UWI; (h.c.) UTT

REAL ESTATE

BAYSIDE WEST LIMITED

9th Floor, TATIL Building, 11 Maraval Road, Port of Spain, Trinidad. Phone: (868) 223-2672/225-6225

Fax: (868) 624–8753

Website: ansamcal.com/sectors/real-estate

Director: A. Norman Sabga, LLD (Hon.) UWI; (h.c.) UTT

B.E.H. HOLDINGS LIMITED

11 Maraval Road, Port of Spain, Trinidad. Phone: (868) 223-2672/225-6225

Fax: (868) 624–8753

Director: A. Norman Sabga, LLD (Hon.) UWI; (h.c.) UTT

GRAND BAZAAR LIMITED

The City of Grand Bazaar Churchill Roosevelt & Uriah Butler Highways, Valsayn, Trinidad.

Phone: (868) 662-2045/ 645-0942/ 663-2363

E-mail: ronald.annandsingh@ansamcal.com

Website: www.facebook.com/GrandBazaarTrinidad

General Manager: Ronald Annandsingh

O’MEARA HOLDINGS LIMITED

11th Floor, TATIL Building, 11 Maraval Road, Port of Spain, Trinidad.

Phone: (868) 223-2672/225-6225

Fax: (868) 624–8753

Director: A. Norman Sabga, LLD (Hon.) UWI; (h.c.) UTT

PROMENADE DEVELOPMENT LIMITED

9th Floor, TAIL Building, 11 Maraval Road, Port of Spain, Trinidad.

Phone: (868) 223-2672/225-6225

Fax: (868) 624–8753

Director: A. Norman Sabga, LLD (Hon.) UWI; (h.c.) UTT

TRINIDAD LANDS LIMITED

9th Floor, TATIL Building, 11 Maraval Road, Port of Spain, Trinidad.

Phone: (868) 223-2672/225-6225

Fax: (868) 624–8753

Director: A. Norman Sabga, LLD (Hon.) UWI; (h.c.) UTT

4 SWEET BRIAR ROAD LIMITED

Floors 9-11, TATIL Building, 11 Maraval Road, Port of Spain, Trinidad.

Phone: (868) 225-6225 Fax: (868) 624–8753

Director: A. Norman Sabga, LLD (Hon.) UWI; (h.c.) UTT

6 SWEET BRIAR ROAD LIMITED

Floors 9-11, TATIL Building, 11 Maraval Road, Port of Spain, Trinidad.

Phone: (868) 225-6225 Fax: (868) 624–8753

Director: A. Norman Sabga, LLD (Hon.) UWI; (h.c.) UTT

Focused on continuously expanding our horizons

We are enthusiastic about the prospects for the future and for the many exciting opportunities these acquisitions will offer clients and the people of Trinidad and Tobago.

ANSA McAL (Barbados) Purchases Shares of Trident Insurance:

ANSA McAL (Barbados) Limited purchased shares of Trident Insurance on 16th December 2019 at an official signing at Trident Insurance, Barbados.

A. Norman Sabga, LLD (Hon.) UWI; (h.c.) UTT, Executive Chairman of the ANSA McAL Group, stated that Trident is a well-known, home-grown Barbadian brand, with an excellent reputation in the Barbadian Financial Sector. The company uses cutting-edge technology to drive its systems, providing a user-friendly online experience which has attracted a loyal customer base.

Trident is a strategic addition to the Group’s insurance business, offering customers innovative financial solutions suited to their lives in an easy and seamless manner.

ANSA Merchant Bank Limited Signs Share Purchase Agreement to Acquire Bank of Baroda (Trinidad and Tobago) Limited:

On 11th December 2019, ANSA Merchant Bank Limited, agreed to purchase 525,597 ordinary shares, representing 100% of the total issued and outstanding shares held in Bank of Baroda (Trinidad and Tobago) Limited. BroadSpan Capital and Singhi Advisors were exclusive advisors to ANSA Merchant Bank for this transaction.

On completion of this transaction, the combined strengths of ANSA Merchant Bank Limited and this commercial banking entity will greatly enhance the scope of the Bank’s banking and financial services for valued clients. A comprehensive array of banking services will include all aspects of Retail Banking, as well as Corporate & Investment Banking Services, Asset Financing, Investment Services and Wealth Management.

This significant event is a natural evolution of the Bank’s indigenous history.

ANSA Merchant Bank is enthusiastic about the prospects for the future and for the many exciting opportunities this acquisition will offer clients and the people of Trinidad and Tobago.

Financial Highlights 2015-2019

Annual Report Financials 2019

INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDERS OF ANSA McAL LIMITED

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of ANSA McAL Limited and its subsidiaries (“the Group”), which comprise the consolidated statement of financial position as at 31 December 2019, and the consolidated statements of income, comprehensive income, changes in equity and cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Group as at 31 December 2019 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (“IFRSs”).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the consolidated financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated financial statements.

INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDERS OF ANSA McAL LIMITED

Report on the Audit of the Consolidated Financial Statements (Continued)

Key Audit Matters (continued)

Estimates used in the calculation of Insurance Contracts’ Liabilities

Refer to Notes 2 (xxvii), 3,19 and 20. The Group has significant insurance liabilities of $1.53 billion representing 21% of the Group’s total liabilities. The valuation of insurance contract liabilities involves extensive judgement and is dependent on a number of subjective assumptions, including primarily the timing and ultimate settlement value of long-term policyholder liabilities as well as the estimation of claims incurred, whether reported or not, for short-term insurance contracts.

Various economic and non-economic key assumptions are being used to estimate the longterm liabilities. Specifically, the Group estimates the expected number and timing of deaths, persistency, future expenses and future investment income arising from the assets backing long-term insurance contracts.

For short-term insurance contracts, in calculating the estimated cost of unpaid claims (both reported and incurred but not reported (IBNR)), the Group uses a combination of loss-ratio-based estimates and estimates based upon actual claims experience.

The Group uses valuation models to support the calculations of these insurance contract liabilities. The complexity of the models may give rise to errors as a result of inadequate/incomplete data or the design or application of the models.

How our audit addressed the key audit matter

We involved our EY actuarial specialists to assist us in performing our audit procedures in this area, which included among others:

•Assessment of the key assumptions applied including consideration of emerging trends and studies on mortality and morbidity, voluntary terminations, persistency, interest rate, policy maintenance and administrative expenses, inflation, tax and lapse rates.

•Recalculation of technical provisions produced by the models on a sample basis.

•An assessment of the internal controls regarding the maintenance of the policyholder database.

•An analysis of the movements in insurance liabilities during the year. We assessed whether the movements are in line with changes in assumptions adopted by the Group, our understanding of developments in the business and our expectations derived from market experience.

INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDERS OF ANSA McAL LIMITED

Report on the Audit of the Consolidated Financial Statements (Continued)

Key Audit Matters (continued)

How our audit addressed the key audit matter

Estimates used in the calculation of Insurance Contracts’ Liabilities (continued)

Fair value measurement of investment securities and related disclosures (continued)

Considering the significance of the insurance contract liabilities and the complexity and estimates involved in the actuarial valuations, we determined this to be a key audit matter in our audit of the consolidated financial statements.

Included in the Level 3 category are financial assets that are not quoted as there are no active markets to determine a price. The fair value of these assets cannot be measured reliably and are therefore held at cost, being the fair value of the consideration paid on acquisition. These assets are regularly assessed for impairment.

As the determination of the fair value for certain investments securities is a key source of estimation uncertainty, is subject to differing underlying assumptions and represents a material balance and disclosure, we deemed this to be a key audit matter in our audit of the consolidated financial statements.

We involved our EY actuarial specialists to assist us in performing our audit procedures in this area, which included among others: (continued)

• We considered whether the Group’s disclosures in the consolidated financial statements in relation to insurance contact liabilities were compliant with IFRS.

INDEPENDENT

INDEPENDENT AUDITOR'S REPORT

AUDITOR'S REPORT

TO THE SHAREHOLDERS OF ANSA McAL LIMITED

TO THE SHAREHOLDERS OF ANSA McAL LIMITED

Report on the Audit of the Consolidated Financial Statements (Continued)

Report on the Audit of the Consolidated Financial Statements (Continued)

Key Audit Matters (continued)

Key Audit Matters (continued)

How our audit addressed the key audit matter Allowance for Expected Credit Losses (ECLs)

How our audit addressed the key audit matter

Allowance for Expected Credit Losses (ECLs)

Fair value measurement of investment securities and related disclosures (continued)

Refer to Notes 2 (xvi), 3, 9, 10 and 32. Net investments in leased assets, loans and advances and other financial assets not held at fair value through statement of income (FVSI) represent 38% of the total assets of the Group amounting to $5.93 billion.

Refer to Notes 2 (xvi), 3, 9, 10 and 32. Net investments in leased assets, loans and advances and other financial assets not held at fair value through statement of income (FVSI) represent 38% of the total assets of the Group amounting to $5.93 billion.

IFRS 9 requires the Group to record an allowance for ECLs for all loans and other debt financial assets not held at FVSI, together with investment in leased assets.

We understood and critically assessed the methodology and assumptions used by the Group in its ECL models while evaluating its compliance with IFRS 9 requirements.

Included in the Level 3 category are financial assets that are not quoted as there are no active markets to determine a price. The fair value of these assets cannot be measured reliably and are therefore held at cost, being the fair value of the consideration paid on acquisition. These assets are regularly assessed for impairment.

IFRS 9 requires the Group to record an allowance for ECLs for all loans and other debt financial assets not held at FVSI, together with investment in leased assets.

As the determination of the fair value for certain investments securities is a key source of estimation uncertainty, is subject to differing underlying assumptions and represents a material balance and disclosure, we deemed this to be a key audit matter in our audit of the consolidated financial statements.

The appropriateness of ECLs is a highly subjective area due to the level of judgement applied by management, involving various assumptions and factors, such as the estimate of the likelihood of default and the potential loss given default. Management also applied adjustments, or overlays, where they believe the data driven parameters and calculations were not appropriate, either due to emerging trends or models not capturing the risks in the portfolios. These overlays required significant judgement.

The appropriateness of ECLs is a highly subjective area due to the level of judgement applied by management, involving various assumptions and factors, such as the estimate of the likelihood of default and the potential loss given default. Management also applied adjustments, or overlays, where they believe the data driven parameters and calculations were not appropriate, either due to emerging trends or models not capturing the risks in the portfolios. These overlays required significant judgement.

We understood and critically assessed the methodology and assumptions used by the Group in its ECL models while evaluating its compliance with IFRS 9 requirements.

We tested the completeness and accuracy of the inputs used within the models, including the Probabilities of Default (PDs), recoveries and the associated Loss Given Defaults (LGDs) and Exposures At Default (EADs). We also considered whether all relevant risks were reflected in the ECL calculation, and where this was not, whether overlays appropriately reflected those risks. Overlays appropriately reflected those risks.

We tested the completeness and accuracy of the inputs used within the models, including the Probabilities of Default (PDs), recoveries and the associated Loss Given Defaults (LGDs) and Exposures At Default (EADs). We also considered whether all relevant risks were reflected in the ECL calculation, and where this was not, whether overlays appropriately reflected those risks. overlays appropriately reflected those risks.

The aging of the portfolios and other qualitative factors were assessed to determine the staging and thus indication of a significant deterioration in credit risk in accordance with IFRS 9.

The aging of the portfolios and other qualitative factors were assessed to determine the staging and thus indication of a significant deterioration in credit risk in accordance with IFRS 9.

Independent testing on PD and LGD inputs was performed through validation to international external credit rating agencies, where these were used, as well as typical collateral, historical loss trends and other borrower characteristics.

Independent testing on PD and LGD inputs was performed through validation to international external credit rating agencies, where these were used, as well as typical collateral, historical loss trends and other borrower characteristics.

INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDERS OF ANSA McAL LIMITED

Report on the Audit of the Consolidated Financial Statements (Continued)

Key Audit Matters (continued)

Fair value measurement of investment securities and related disclosures (continued)

How our audit addressed the key audit matter Allowance for Expected Credit Losses (ECLs) (continued)

Other significant areas of judgement included:

- the interpretation of the requirements to determine impairment under the application of IFRS 9, which is reflected in the Group's ECL models;

Included in the Level 3 category are financial assets that are not quoted as there are no active markets to determine a price. The fair value of these assets cannot be measured reliably and therefore held at cost, being the fair value of the consideration paid on acquisition. These assets are regularly assessed for impairment.

- the application of assumptions where there was limited or incomplete data;

For ECLs calculated on an individual basis, we tested the factors underlying the impairment identification and quantification including forecasts of the amount and timing of future cash flows, valuation of assigned collateral and estimates of recovery on default.

- the identification of exposures with a significant deterioration in credit quality;

- assumptions used in the ECL model such as the financial condition of the counterparty or valuation of security; and

As the determination of the fair value for certain investments securities is a key source of estimation uncertainty, is subject to differing underlying assumptions and represents a material balance and disclosure, we deemed this to be a key audit matter in our audit of the consolidated financial statements.

- the need to apply overlays, the quantification of which can be highly subjective, to reflect current or future external factors that are not appropriately captured by the ECL model.

Given the combination of inherent subjectivity in the valuation, and the material nature of the balance, we considered the measurement of ECLs to be a key audit matter in our audit of the consolidated financial statements.

We utilised our EY valuation specialists to assess the appropriateness of the key assumptions used in the models.

Finally, we focused on the adequacy of the Group’s financial statement disclosures as to whether it appropriately reflected the requirements of the IFRSs.

INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDERS OF ANSA McAL LIMITED

Report on the Audit of the Consolidated Financial Statements (Continued)

Key Audit Matters (continued)

Fair value measurement of investment securities and related disclosures

(continued)

How our audit addressed the key audit matter

Included in the Level 3 category are financial assets that are not quoted as there are no active markets to determine a price. The fair value of these assets cannot be measured reliably and are therefore held at cost, being value of the consideration paid on acquisition. These assets are regularly assessed for impairment.

Refer to Notes 2 (xvii), 3, 9 and 31. The Group invests in various investment securities, of which $847 million is carried at fair value in the consolidated statement of financial position. Additionally, the fair values are disclosed for $3.8 billion of investment securities carried at amortised cost in the statement of financial position. Of these assets, $2.7 billion are related to investments for which no published prices in active markets are available and have been classified as Level 2 and Level 3 assets within the IFRS fair value hierarchy.

As the determination of the fair value for certain investments securities is a key source of estimation uncertainty, is subject to differing underlying assumptions and represents a material balance and disclosure, we deemed this to be a key audit matter in our audit of the consolidated financial statements.

Valuation techniques for these investments can be subjective in nature and involve various assumptions regarding pricing factors. Associated risk management disclosure is complex and dependent on high quality data. A specific area of audit focus includes the determination of fair value of Level 2 and Level 3 assets where valuation techniques are applied in which unobservable inputs are used.

For Level 2 assets, these techniques include the use of recent arm’s length transactions, reference to other instruments that are substantially the same and discounted cash flow analyses making maximum use of market inputs, such as the market risk free yield curve.

We independently tested the pricing on quoted securities, and we used our valuation specialists to assess the appropriateness of pricing models used by the Group. This included:

•An assessment of the pricing model methodologies and assumptions against industry practice and valuation guidelines.

•Testing of the inputs used, including cash flows and other market based data.

•An evaluation of the reasonableness of other assumptions applied such as credit spreads.

•The re-performance of valuation calculations on a sample basis of internally priced securities that were classified as higher risk and estimation.

•An assessment of management's impairment analysis.

Finally, we assessed whether the financial statement disclosures, including sensitivity to key inputs and the IFRS fair value hierarchy, appropriately reflect the Group’s exposure to financial instrument valuation risk.

INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDERS OF ANSA McAL LIMITED

Report on the Audit of the Consolidated Financial Statements (Continued)

Key Audit Matters (continued)

Fair value measurement of investment securities and related disclosures (continued)

Included in the Level 3 category are financial assets that are not quoted as there are no active markets to determine a price. The fair value of these assets cannot be measured reliably and are therefore held at cost, being the fair value of the consideration paid on acquisition. These assets are regularly assessed for impairment.

As the determination of the fair value for certain investments securities is a key source of estimation uncertainty, is subject to differing underlying assumptions and represents a material balance and disclosure, we deemed this to be a key audit matter in our audit of the consolidated financial statements.

How our audit addressed the key audit matter

INDEPENDENT AUDITOR'S REPORT

INDEPENDENT AUDITOR'S REPORT

INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDERS OF ANSA McAL LIMITED

TO THE SHAREHOLDERS OF ANSA McAL LIMITED

TO THE SHAREHOLDERS OF ANSA McAL LIMITED

Report on the Audit of the Consolidated Financial Statements (Continued)

Report on the Audit of the Consolidated Financial Statements (Continued)

Report on the Audit of the Consolidated Financial Statements (Continued)

Key Audit Matters (continued)

Key Audit Matters (continued)

Key Audit Matters (continued)

How our audit addressed the key audit matter Allowance for Expected Credit Losses (ECLs)

How our audit addressed the key audit matter

Fair value measurement of investment securities and related disclosures (continued)

Estimation uncertainty involved in impairment testing of goodwill and other intangibles with indefinite lives

Refer to Notes 2 (xvi), 3, 9, 10 and 32. Net investments in leased assets, loans and advances and other financial assets not held at fair value through statement of income (FVSI) represent 38% of the total assets of the Group amounting to $5.93 billion.

Refer to related disclosures in Notes 3 and 6, and accounting policy Notes 2 (vi) and 2 (ix) to the consolidated financial statements. As described in these notes, impairment tests are performed annually on goodwill and certain indefinite life brands, licenses and contracts which amount to $411 million as at 31 December 2019.

IFRS 9 requires the Group to record an allowance for ECLs for all loans and other debt financial assets not held at FVSI, together with investment in leased assets.

Included in the Level 3 category are financial assets that are not quoted as there are no active markets to determine a price. The fair value of these assets cannot be measured reliably and are therefore held at cost, being the fair value of the consideration paid on acquisition. These assets are regularly assessed for impairment.

How our audit addressed the key audit matter

We understood and critically assessed the methodology and assumptions used by the Group in its ECL models while evaluating its compliance with IFRS 9 requirements.

Our audit procedures focused on the assessment of the key assumptions utilized by the Group including the cash-flow projections and the discount rate. We also evaluated whether the value in use impairment test model utilised met the requirement of IAS 36.

As the determination of the fair value for certain investments securities is a key source of estimation uncertainty, is subject to differing underlying assumptions and represents a material balance and disclosure, we deemed this to be a key audit matter in our audit of the consolidated financial statements.

The appropriateness of ECLs is a highly subjective area due to the level of judgement applied by management, involving various assumptions and factors, such as the estimate of the likelihood of default and the potential loss given default. Management also applied adjustments, or overlays, where they believe the data driven parameters and calculations were not appropriate, either due to emerging trends or models not capturing the risks in the portfolios. These overlays required significant judgement.

We tested the completeness and accuracy of the inputs used within the models, including the Probabilities of Default (PDs), recoveries and the associated Loss Given Defaults (LGDs) and Exposures At Default (EADs). We also considered whether all relevant risks were reflected in the ECL calculation, and where this was not, whether overlays appropriately reflected those risks. overlays appropriately reflected those risks.

As required by IAS 36: “Impairment of Assets”, the Group performed an impairment test on these assets. Based on the impairment test during the year, no impairment provision was recorded in 2019.

The aging of the portfolios and other qualitative factors were assessed to determine the staging and thus indication of a significant deterioration in credit risk in accordance with IFRS 9.

Impairment tests on goodwill and other intangibles involve significant estimation and the application of a high level of judgment relative to key assumptions such as the applicable discount rate and future cashflows.

In determining future cash-flow projections, the Group uses assumptions and estimates in respect of future market conditions, future economic growth, expected market share and gross margins. The outcome of the impairment testing is sensitive to these assumptions and estimates, such that changes in these assumptions/estimates may result in different impairment test conclusions.

Independent testing on PD and LGD inputs was performed through validation to international external credit rating agencies, where these were used, as well as typical collateral, historical loss trends and other borrower characteristics.

To this end, our procedures included, amongst others, evaluating and testing the assumptions, methodologies, Cash Generating Unit (CGU) determination, discount rate and other key data used by the Group. We also assessed the Group’s assumptions by comparing to historical performance of the entity, local economic conditions and other alternative independent sources of information. In so doing, we evaluated the Group’s assessment of the sensitivity of the key assumptions to reasonable possible changes which could cause the carrying amount of the CGU to exceed its recoverable amount.

We involved our EY valuation specialist to assist with our audit of the impairment test model, including the cash flows, discount rate and long term growth rates.

We also assessed the appropriateness of the disclosures in the notes to the consolidated financial statements, with reference to that prescribed by IFRSs.

INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDERS OF ANSA McAL LIMITED

Report on the Audit of the Consolidated Financial Statements (Continued)

Other information included in the Group's 2019 Annual Report

Other information consists of the information included in the Group’s 2019 Annual Report, other than the consolidated financial statements and our auditor’s report thereon. Management is responsible for the other information. The Group’s 2019 Annual Report is expected to be made available to us after the date of this auditor’s report.

Our opinion on the consolidated financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

Responsibilities of Management and the Audit Committee for the Consolidated Financial Statements

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

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The Audit Committee is responsible for overseeing the Group’s financial reporting process.

INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDERS OF ANSA McAL LIMITED

Report on the Audit of the Consolidated Financial Statements (Continued)

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

· Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

· Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

· Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDERS OF ANSA McAL LIMITED

Report on the Audit of the Consolidated Financial Statements (Continued)

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements (Continued)

· Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner in charge of the audit resulting in this independent auditor’s report is Pria Narinesingh.

Port of Spain, TRINIDAD: 27 March 2020

ANSA McAL LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars)

31 December

ANSA McAL LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

EQUITY AND LIABILITIES

Equity attributable to equity holders of the Parent

31 December

The accompanying notes form an integral part of these consolidated financial statements. ThesefinancialstatementswereauthorisedforissuebytheBoardofDirectorson27March2020and signed on their behalf by:

ANSA McAL LIMITED AND ITS SUBSIDIARIES

ANSA McAL LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF

CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED 31 DECEMBER 2019

(Continued)

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars)

Other comprehensive income/(loss)

Items that may be reclassified subsequently to profit or loss:

Items that will not be reclassified subsequently to profit or loss:

The accompanying notes form an integral part of these consolidated financial statements.

Year ended 31 December

ANSA McAL LIMITED AND ITS SUBSIDIARIES

ANSA McAL LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2019

(Expressed in Thousands of Trinidad and Tobago dollars)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) ShareOtherTreasury NoncapitalreservessharesRetained controlling Total Year ended 31 December 2019 (Note 16)(Note 16)(Note 16) earningsTotalinterestsequity

Attributable to equity holders of the parent

Attributable to equity holders of the parent

Year ended 31 December 2019 (Note 16)(Note 16)(Note 16)

Balance at 1 January 2019

0

Balance at 1 January 2019 175,335372,874(23,856)6,782,0647,306,417822,6298,129,046 0 0 Profit for the year

for the year

–644,846644,846131,497776,343

Other comprehensive income/(loss) for the year –(8,315)–65,96557,6508,24865,898 Value of equity-settled shared based compensation (Note 16)

–644,846644,846131,497776,343 Other comprehensive income/(loss) for the year

Transfers and other movements –13,964 –(42,246)(28,282) –(28,282)

Net movement in unallocated ESOP shares

Dividends (Note 28)

–4,100 –4,100 –4,100

–(310,319)(310,319) –(310,319) Dividends of subsidiaries

(Note 28)

of subsidiaries

Balance at 31 December 2019

–(59,606)(59,606)

(19,756)7,140,310 902,7688,577,411

175,566 (19,756)7,140,310 902,7688,577,411

The accompanying notes form an integral part of these consolidated financial statements.

The accompanying notes form an integral part of these consolidated financial statements.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

ANSA McAL LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2019

(Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

Attributable to equity holders of the parent

(Note 16)

(Note 28)

(Note 28)

The accompanying notes form an integral part of these consolidated financial statements.

The accompanying notes form an integral part of these consolidated financial statements.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars)

to reconcile net profit to net cash from operating activities:

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

Cash flows from investing activities

Acquisition of subsidiaries, net of cash acquired

Proceeds from sale of property, plant and equipment and investment properties

Proceeds from sale, maturity, or placement of investment securities/fixed deposits

Decrease

Purchases of treasury shares - net (4,100) (8,719) Payment of principal portion of lease liabilities 7 (36,011) –Purchase of non-controlling interests – (4,505)

Dividends paid to non-controlling interests and preference shareholders (59,616) (84,243) Dividends paid to

The accompanying notes form an integral part of these consolidated financial statements.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars)

1. Incorporation and business activities

ANSAMcALLimited(the“Company”orthe“parentcompany”),incorporatedanddomiciledinthe RepublicofTrinidadandTobago,istheultimateparentcompanyofadiversifiedgroupof companiesengagedintradinganddistribution,manufacturing,packagingandbrewing,insurance andfinancialservicesandthemediaandserviceindustries.ANSAMcALLimitedandits consolidatedsubsidiaries(“theGroup”)operateinTrinidadandTobago,thewiderCaribbeanregion andtheUnitedStatesofAmerica.AlistingoftheGroup’ssubsidiariesandassociates/jointventure interests is detailed in Note 34.

TheCompanyisalimitedliabilitycompanywithitsregisteredofficelocatedat11MaravalRoad, PortofSpain,Trinidad,WestIndiesandhasaprimarylistingontheTrinidadandTobagoStock Exchange.

2. SIGNIFICANT ACCOUNTING POLICIES

Theprincipalaccountingpoliciesappliedinthepreparationoftheseconsolidatedfinancial statements are set out below:

i. Basis of preparation

TheseconsolidatedfinancialstatementsareexpressedinthousandsofTrinidadandTobago dollars(exceptwhenotherwiseindicated)andhavebeenpreparedonahistoricalcostbasis exceptforthemeasurementatfairvalueofcertainfinancialassetsmeasuredatfairvalue through statement of income, and other comprehensive income.

Statement of compliance

TheconsolidatedfinancialstatementsoftheGrouphavebeenpreparedinaccordancewith InternationalFinancialReportingStandards(IFRS)asissuedbytheInternational Accounting Standards Board (IASB).

Presentation of consolidated financial statements

Financialassetsandfinancialliabilitiesareoffsetandthenetamountisreportedinthe consolidatedstatementoffinancialpositionifthereisacurrentlyenforceablelegalrightto offsettherecognisedamountsandthereisanintentiontosettleonanetbasis,torealisethe assetsandsettletheliabilitiessimultaneously.Incomeandexpensesarenotoffsetinthe consolidatedstatementofincomeunlessrequiredorpermittedbyanyaccountingstandard or interpretation, and as specifically disclosed in the accounting policies of the Group.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

ii.

TheconsolidatedfinancialstatementscomprisethefinancialstatementsofANSAMcAL Limitedanditssubsidiaries.ControlisachievedwhentheGroupisexposed,orhasrights, tovariablereturnsfromitsinvolvementwiththeinvesteeandhastheabilitytoaffectthose returns through its power over the investee.

Specifically, the Group controls an investee if and only if the Group has:

•

Powerovertheinvestee(i.e.existingrightsthatgiveitthecurrentabilitytodirectthe relevant activities of the investee);

Exposure, or rights, to variable returns from its involvement with the investee; and

The ability to use its power over the investee to affect its returns.

WhentheGrouphaslessthanamajorityofthevotingorsimilarrightsofaninvestee,the Groupconsidersallrelevantfactsandcircumstancesinassessingwhetherithaspowerover an investee, including:

The contractual arrangement with the other vote holders of the investee;

Rights arising from other contractual arrangements; and

The Group’s voting rights and potential voting rights.

TheGroupre-assesseswhetherornotitcontrolsaninvesteeiffactsandcircumstances indicatethattherearechangestooneormoreofthethreeelementsofcontrol. ConsolidationofasubsidiarybeginswhentheGroupobtainscontroloverthesubsidiary andceaseswhentheGrouplosescontrolofthesubsidiary.Assets,liabilities,incomeand expensesofasubsidiaryacquiredordisposedofduringtheyearareincludedinthe consolidatedstatementofcomprehensiveincomefromthedatetheGroupgainscontrol until the date the Group ceases to control the subsidiary.

Profitorlossandeachcomponentofothercomprehensiveincome(OCI)areattributedto theequityholdersoftheparentoftheGroupandtothenon-controllinginterests,evenif thisresultsinthenon-controllinginterestshavingadeficitbalance.Whennecessary, adjustmentsaremadetothefinancialstatementsofsubsidiariestobringtheiraccounting policiesinlinewiththeGroup’saccountingpolicies.Allintra-groupassetsandliabilities, equity,income,expensesandcashflowsrelatingtotransactionsbetweenmembersofthe Group are eliminated in full on consolidation.

Basis of consolidation

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING

ii.

iii.

POLICIES

(continued)

Basis of consolidation (continued)

Achangeintheownershipinterestofasubsidiary,withoutalossofcontrol,isaccounted for as an equity transaction. If the Group loses control over a subsidiary, it:

Derecognises the assets (including goodwill) and liabilities of the subsidiary; Derecognises the carrying amount of any non-controlling interests;

Derecognises the cumulative translation differences recorded in equity; Recognises the fair value of the consideration received;

Recognises the fair value of any investment retained;

Recognises any surplus or deficit in profit or loss; and

Reclassifiestheparent’sshareofcomponentspreviouslyrecognisedinOCItoprofitor lossorretainedearnings,asappropriate,aswouldberequirediftheGrouphaddirectly disposed of the related assets or liabilities.

Non-controllinginterestsrepresenttheinterestsnotheldbytheGroupintheANSA MerchantBankGroup,GuardianMediaGroup,CaribbeanDevelopmentCompanyGroup, CaribBrewery(StKitts&Nevis)Limited,GrenadaBreweriesLimitedandtheLewis Berger (Overseas) Holdings Group.

Changes in accounting policies and disclosures

New and amended standards and interpretations

TheGroupappliedIFRS16Leasesforthefirsttime.Thenatureandeffectofchangesasa result of the adoption of this new accounting standard are described below.

Severalotheramendmentsandinterpretationsapplyforthefirsttimein2019,butdonot haveanimpactontheconsolidatedfinancialstatementsoftheGroup.Thesearealso describedinmoredetailbelow.TheGrouphasnotearlyadoptedanystandards, interpretations or amendments that have been issued but are not yet effective.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

iii.

Changes in accounting policies and disclosures (continued)

New and amended standards and interpretations (continued)

IFRS 16 - Leases

IFRS16supersedesIAS17Leases,IFRIC4Determiningwhetheranarrangementcontains alease,SIC15OperatingLeases-incentivesandSIC27EvaluatingtheSubstanceof TransactionsinvolvingthelegalformofaLease.Thestandardsetsouttheprinciplesforthe recognition,measurement,presentationanddisclosureofleasesandrequireslesseesto accountformostleasesunderasingleon-balancesheetmodel.Lessoraccountingis substantiallyunchangedfromIAS17.Lessorswillcontinuetoclassifyleasesaseither operatingorfinanceleasesusingsimilarprinciplesasinIAS17.Therefore,IFRS16does not have an impact for leases where the Group is a Lessor.

TheGroupadoptedIFRS16usingthemodifiedretrospectivemethodofadoptionwiththe dateofinitialapplicationof1January2019.Underthismethod,thestandardisapplied retrospectivelywiththecumulativeeffectofinitiallyapplyingthestandardrecognisedatthe dateofinitialapplication.TheGroupelectedtousethetransitionpracticalexpedienttonot reassesswhetheracontractis,orcontainsaleaseat1January2019.Instead,theGroup appliedthestandardonlytocontractsthatwerepreviouslyidentifiedasleasesapplyingIAS 17 and IFRIC 4 at the date of initial application.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2.SIGNIFICANT ACCOUNTING POLICIES (continued) iii. $

Changes in accounting policies and disclosures (continued)

New and amended standards and interpretations (continued)

IFRS 16 - Leases (continued)

The effect of adoption of IFRS 16 as at 1 January 2019 is as follows:

Annual Report Financials 2019

ANSA

McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2.SIGNIFICANT ACCOUNTING POLICIES (continued)

iii. •

Changes in accounting policies and disclosures (continued)

IFRS 16 - Leases

(continued)

• New and amended standards and interpretations (continued)

UponadoptionofIFRS16,theGroupappliedasinglerecognitionandmeasurement approachforallleaseswheretheGroupisthelesseeexceptforshort-termleasesandleases oflow-valueassets.RefertoNote2(xviii)fortheaccountingpolicybeginning1January 2019.Thestandardprovidesspecifictransitionrequirementsandpracticalexpedients, which have been applied by the Group.

Leases previously classified as finance leases - Group as lessee

TheGroupdidnotchangetheinitialcarryingamountsofrecognisedassetsand liabilitiesatthedateofinitialapplicationforleasespreviouslyclassifiedasfinance leases(i.e.,theright-of-useassetsandleaseliabilitiesequaltheleaseassetsand liabilitiesrecognisedunderIAS17).TherequirementsofIFRS16wereappliedto these leases from 1 January 2019.

Leases previously accounted for as operating leases - Group as lessee TheGrouprecognisedright-of-useassetsandleaseliabilitiesforthoseleases previouslyclassifiedasoperatingleases,exceptforshort-termleasesandleasesoflow valueassets.Theright-of-useassetsforallleaseswererecognisedbasedontheamount equaltotheleaseliabilities,adjustedforanyrelatedprepaidandaccruedlease payments previously recognised.

Leaseliabilitieswererecognisedbasedonthepresentvalueoftheremaininglease payments,discountedusingtheincrementalborrowingrateatthedateofinitial application.

The Group also applied the available practical expedients wherein it:

Usedasinglediscountratetoaportfolioofleaseswithreasonablysimilar characteristics

Reliedonitsassessmentofwhetherleasesareonerousimmediatelybeforethe date of initial application

Appliedtheshort-termleasesexemptionstoleaseswithleasetermthatends within 12 months of the date of initial application

•

Excludedtheinitialdirectcostsfromthemeasurementoftheright-of-useassetat the date of initial application

Usedhindsightindeterminingtheleasetermwherethecontractcontained options to extend or terminate the lease

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2.SIGNIFICANT ACCOUNTING POLICIES (continued) iii.

Changes in accounting policies and disclosures (continued)

New and amended standards and interpretations (continued)

IFRS 16 - Leases (continued)

Leases previously accounted for as operating leases (continued)

Based on the above, as at 1 January 2019:

Right-of-useassetsof$106,699wererecognisedandpresentedseparatelyinthe consolidated statement of financial position.

Additionalleaseliabilitiesof$106,699wererecognisedandpresentedinthe consolidated statement of financial position.

Theleaseliabilitiesasat1January2019canbereconciledtotheoperatinglease commitments as of 31 December 2018, as follows:

Operating lease commitments as at 31 December 2018

Weighted average incremental borrowing rate as at 1 January 2019

Discounted operating lease commitments as at 1 January 2019

Less:

Commitments relating to short-term leases

Commitments relating to leases of low-value assets

Lease liabilities as at 1 January 2019

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2.SIGNIFICANT ACCOUNTING POLICIES (continued)

iii.

Changes in accounting policies and disclosures (continued)

New and amended standards and interpretations (continued)

IFRIC 23 - Uncertainty over income tax treatment

TheIFRICinterpretationclarifiesapplicationoftherecognitionandmeasurement requirementsinIAS12IncomeTaxeswhenthereisuncertaintyoverincometaxtreatments. The interpretation specifically addresses the following:

Whether an entity considers uncertain tax treatments separately.

Theassumptionsanentitymakesabouttheexaminationoftaxtreatmentsbytaxation authorities.

Howanentitydeterminestaxableprofit(taxloss),unusedtaxlosses,unusedtaxcredits and tax rates.

-How an entity considers changes in facts and circumstances.

Anentityhastodeterminewhethertoconsidereachuncertaintaxtreatmentseparatelyor togetherwithoneormoreuncertaintaxtreatments.Theapproachthatbetterpredictsthe resolution of the uncertainty should be followed.

The Group has appropriately assessed uncertain tax positions in line with IFRIC 23.

IFRS9-FinancialInstrumentsAmendments-PrepaymentFeatureswithNegative Compensation

TheamendmentstoIFRS9clarifythatafinancialassetpassesthe"solelypaymentsof principalandinterest"(SPPI)criterionregardlessoftheeventorcircumstancesthatcauses theearlyterminationofthecontractandirrespectiveofwhichpartypaysorreceives reasonable compensation for the early termination of the contract.

Thebasisforconclusionstotheamendmentsclarifiedthattheearlyterminationcanresult fromacontractualtermorfromaneventoutsidethecontrolofthepartiestothecontract such as change in law or regulation leading to the early termination of the contract.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2.SIGNIFICANT ACCOUNTING POLICIES (continued)

iii.

Changes in accounting policies and disclosures (continued)

New and amended standards and interpretations (continued)

IFRS9-FinancialInstrumentsAmendments-PrepaymentFeatureswithNegative Compensation (continued)

Inthebasisforconclusionstotheamendments,theIASBalsoclarifiedthatthe requirementsinIFRS9foradjustingtheamortisedcostofafinancialliability,whena modificationdoesnotresultinderecognition,areconsistentwiththoseappliedtothe modification of a financial asset that does not result in derecognition.

Thismeansthatthegainorlossarisingonmodificationofafinancialliabilitythatdoesnot resultinderecognition,calculatedbydiscountingthechangeincontractualcashflowsatthe originaleffectiveinterestrate,isimmediatelyrecognizedinprofitorloss.Theamendments must be applied retrospectively.

TheseamendmentshavenoimpactontheGroupastherearenodebtinstrumentswith prepayment features with negative compensation.

IAS28InvestmentsinassociatesandJointVenturesAmendments-Long-term interests in associates and joint ventures

TheamendmentsclarifythatanentityappliesIFRS9tolong-terminterestsinanassociate orjointventuretowhichtheequitymethodisnotappliedbutthat,insubstance,formpart ofthenetinvestmentintheassociateorjointventure(long-terminterest).Thisclarification isrelevantbecauseitimpliesthattheexpectedcreditlossmodelinIFRS9appliestosuch long-term interests.

TheBoardalsoclarifiedthat,inapplyingIFRS9,anentitydoesnottakeintoaccountofany lossesoftheassociateorjointventureoranyimpairmentlossesonthenetinvestment, recognizedasadjustmentstothenetinvestmentinassociateorjointventurethatarisefrom applying IAS 28 Investments in Associates and Joint Ventures.

Theseamendmentsmustbeappliedretrospectively.Theseamendmentshavenoimpacton the Group as the equity method is applied to all investments in associates and joint ventures.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES

iii.-

(continued)

Changes in accounting policies and disclosures (continued)

New and amended standards and interpretations (continued)

IAS 19 - Employee Benefits Amendments - Plan Amendments, Curtailment or Settlement

The amendments specify that when a plan amendment, curtailment or settlement occurs during the annual period, an entity is required to:

Determine current service cost for the remainder of the period after the plan amendment, curtailment or settlement using the actuarial assumption used to remeasure the net defined liability (asset) reflecting the benefits offered under the plan and the plan assets after that event.

Determine net interest for the remainder of the period after the plan amendment, curtailment or settlement using: the net defined benefit liability (asset) reflecting the benefits under the plan and the plan assets after that event; and the discount rate used to remeasure that net defined benefit liability (asset).

The amendments also clarify that an entity first determines any past service cost, or a gain or loss on settlement, without considering the effect of the asset ceiling. This amount is recognised in profit or loss. An entity then determines the effect of the asset ceiling after the plan amendment, curtailment or settlement. Any change in that effect, excluding amounts included in the net interest, is recognised in other comprehensive income.

The amendments apply prospectively to plan amendments, curtailments or settlements that occur on or after the date of first application.

These amendments have no impact on the Group as no plan amendments, curtailments or settlements occurred during the annual period.

Annual Improvements to IFRSs 2015-2017

IFRS 3 Business Combinations - Amendments – Previously held interests in a joint operation

The amendments clarify that, when an entity obtains control of a business that is a joint operation, it applies the requirements for a business combination achieved in stages, including measuring previously held interests in the assets and liabilities of the joint operation at fair value.

In doing so, the acquirer remeasures its entire previously held interest in the joint operation.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued) iii.

Changes in accounting policies and disclosures (continued)

New and amended standards and interpretations (continued)

Annual Improvements to IFRSs 2015-2017 (continued)

IFRS3BusinessCombinations-Amendments–Previouslyheldinterestsinajoint operation (continued)

Anentityappliesthoseamendmentstobusinesscombinationsforwhichtheacquisition dateisonorafterthebeginningofthefirstannualreportingperiodbeginningonorafter1 January 2019.

TheseamendmentshavenoimpactontheGroupastheGroupdoesnothavejoint operations.

IFRS11JointArrangements-Amendments–Previouslyheldinterestinjoint operation

Apartythatparticipatesin,butdoesnothavejointcontrolor,ajointoperationmight obtainjointcontrolofthejointoperationinwhichtheactivityofthejointoperation constitutesabusinessasdefinedinIFRS3.Theamendmentsclarifythatthepreviously held interests in that joint operation are not remeasured.

Anentityappliesthoseamendmentstotransactionsinwhichitobtainsjointcontrolonor afterthebeginningofthefirstannualreportingperiodbeginningonorafter1January 2019.

TheseamendmentshavenoimpactontheGroupastheGroupdoesnothavejoint operations.

IAS12IncomeTaxes-Amendment–Incometaxconsequencesofpaymentson financial instruments classified as equity

Theamendmentsclarifythattheincometaxconsequencesondividendsarelinkedmore directlytopasttransactionsoreventsthatgenerateddistributableprofitsthanto distributionsofowners.Therefore,anentityrecognizedtheincometaxconsequencesof dividendsinprofitorloss,othercomprehensiveincomeorequityaccordingtowherethe entity originally recognised those past transactions or events.

Anentityappliesthoseamendmentsforannualreportingperiodsbeginningonorafter1 January2019.Whenanentityfirstappliesthoseamendments,itappliesthemtothe incometaxconsequencesofdividendsrecognisedonorafterthebeginningoftheearliest comparative period.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued) iii.

Changes in accounting policies and disclosures (continued)

New and amended standards and interpretations (continued)

IAS 12 Income Taxes - Amendment – Income tax consequences of payments on financial instruments classified as equity (continued)

These amendments have no impact on the Group.

IAS 23 Borrowing Costs - Amendment – Borrowing costs eligible for capitalisation

The amendments clarify that an entity treats as part of general borrowings any borrowing originally made to develop a qualifying asset when substantially all of the activities necessary to prepare that asset for its intended use or sale are complete.

An entity applies those amendments to borrowing costs incurred in or after the beginning of the annual reporting period in which the entity first applies those amendments.

An entity applies those amendments for annual reporting periods beginning on or after 1 January 2019.

These amendments have no impact on the Group.

Standards issued but not yet effective

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group's consolidated financial statements are disclosed below.

The Group is currently assessing the potential impact of these new standards and interpretations and will adopt them when they become effective.

• • • • • Goodwill

IFRS 17, ‘Insurance Contracts’ – Effective 1 January 2022

Amendments to References in the Conceptual Framework in IFRS Standards –Effective 1 January 2020

Amendments to IFRS 3 – Definition of Business – Effective 1 January 2020

Amendments to IAS 1 and IAS 8 – Definition of Material – Effective 1 January 2020

Amendments to IFRS 9, IFRS 39, IFRS 7 – Interest Rate Benchmark Reform –Effective 1 January 2020

Goodwill arises on the acquisition of subsidiaries and represents the excess of the consideration transferred over the Group's interest in net fair value of the net identifiable assets, liabilities and contingent liabilities of the acquiree and the fair value of the noncontrolling interest in the acquiree.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued) iv.

Current versus non-current distinction

TheGrouppresentsassetsandliabilitiesintheconsolidatedstatementoffinancialposition based on current/non-current classification. An asset is current when it is:

•

Expectedtoberealisedorintendedtobesoldorconsumedinanormaloperating cycle;

Held primarily for the purpose of trading;

Expected to be realised within twelve months after the reporting period; or

Cashorcashequivalentsunlessrestrictedfrombeingexchangedorusedtosettlea liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

It is expected to be settled in the normal operating cycle;

It is held primarily for the purpose of trading;

• • • v. It is due to be settled within twelve months after the reporting period; or Thereisnounconditionalrighttodeferthesettlementoftheliabilityforatleast twelve months after the reporting period.

The Group classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Investment in associates and joint arrangements

AnassociateisanentityoverwhichtheGrouphassignificantinfluence.Significant influenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsofthe investee, but is not control or joint control over those policies.

Ajointventureisatypeofjointarrangementwherebythepartiesthathavejointcontrolof thearrangementhaverightstothenetassetsofthejointventure.Jointcontrolisthe contractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhen decisionsabouttherelevantactivitiesrequireunanimousconsentofthepartiessharing control.

Theconsiderationsmadeindeterminingsignificantinfluenceorjointcontrolaresimilarto thosenecessarytodeterminecontroloversubsidiaries.TheGroup’sinvestmentsinits associate and joint venture interests are accounted for using the equity method.

Undertheequitymethod,theinvestmentinanassociateorajointventureisinitially recognisedatcost.Thecarryingamountoftheinvestmentisadjustedtorecognisechanges intheGroup’sshareofnetassetsoftheassociateorjointventuresincetheacquisition date.Goodwillrelatingtotheassociateorjointventureisincludedinthecarryingamount oftheinvestmentandisneitheramortisednorindividuallytestedforimpairment separately.

Annual Report Financials 2019

ANSA

McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Investment in associates and joint arrangements (continued)

TheconsolidatedstatementofincomereflectstheGroup’sshareoftheresultsofoperations oftheassociateorjointventure.Unrealisedgainsandlossesresultingfromtransactions betweentheGroupandtheassociateorjointventureareeliminatedtotheextentofthe interest in the associate or joint venture.

TheaggregateoftheGroup’sshareofprofitorlossofanassociateandajointventureis shownonthefaceoftheconsolidatedstatementofincomeoutsideoperatingprofitand representsprofitorlossaftertaxandnon-controllinginterestsinthesubsidiariesofthe associate or joint venture.

Thefinancialstatementsofthejointventureandsomeassociatesarepreparedforthesame reportingperiodasthatoftheGroup.Forotherassociateswithdifferentreportingdates, thesedateswereestablishedwhenthosecompanieswereincorporatedandhavenotbeen changed.WherethereportingdatesarewithinthreemonthsoftheGroup’syearend,the associates’auditedfinancialstatementsareutilised.Wherethereportingdatesdifferfrom theGroup’syearendbymorethanthreemonthsortheauditedfinancialstatementsarenot yetavailable,managementaccountsareutilised.Further,thefinancialstatementsofthese associatesareadjustedfortheeffectsofsignificanttransactionsoreventsthatoccurred betweenthatdateandtheGroup’syearend.Whennecessary,adjustmentsarealsomadeto bring the accounting policies in line with those of the Group.

Afterapplicationoftheequitymethod,theGroupdetermineswhetheritisnecessaryto recogniseanimpairmentlossonitsinvestmentinitsassociateorjointventure.Ateach reportingdate,theGroupdetermineswhetherthereisobjectiveevidencethattheinvestment intheassociateorjointventureisimpaired.Ifthereissuchevidence,theGroupcalculates theamountofimpairmentasthedifferencebetweentherecoverableamountoftheassociate orjointventureanditscarryingvalue,andthenrecognisesthelosswithin‘Shareofprofit of an associate and a joint venture’ in the consolidated statement of income.

Uponlossofsignificantinfluenceovertheassociateorjointcontroloverthejointventure, theGroupmeasuresandrecognisesanyretainedinvestmentatitsfairvalue.Anydifference betweenthecarryingamountoftheassociateorjointventureuponlossofsignificant influenceorjointcontrolandthefairvalueoftheretainedinvestmentandproceedsfrom disposal is recognised in profit or loss.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES

vi. Business combinations and goodwill

(continued)

Businesscombinationsareaccountedforusingtheacquisitionmethod.Wherebusiness combinationsundercommoncontroloccur,theacquisitionmethodisalsousedaspermitted undertheguidelinesofIAS8‘AccountingPolicies,ChangesinAccountingEstimatesand Errors’.Thecostofanacquisitionismeasuredastheaggregateoftheconsideration transferredmeasuredatacquisition-datefairvalueandtheamountofanynon-controlling interestintheacquiree.Foreachbusinesscombination,theacquirermeasuresthenoncontrollinginterestintheacquireeeitheratfairvalueorattheproportionateshareofthe acquiree’sidentifiablenetassets.Acquisition-relatedcostsincurredareexpensedand included in administrative expenses.

WhentheGroupacquiresabusiness,itassessesthefinancialassetsandliabilitiesassumed forappropriateclassificationanddesignationinaccordancewiththecontractualterms, economiccircumstancesandpertinentconditionsasattheacquisitiondate.Thisincludes the separation of embedded derivatives in host contracts by the acquiree.

Ifthebusinesscombinationisachievedinstages,thefairvalueoftheacquirer’spreviously heldequityinterestintheacquireeisre-measuredtofairvalueattheacquisitiondate through profit or loss.

Anycontingentconsiderationtobetransferredbytheacquirerwillberecognisedatfair valueattheacquisitiondate.Subsequentchangestothefairvalueofthecontingent considerationwhichisdeemedtobeanassetorliabilitywillberecognisedeitherinprofit orlossorasachangetoothercomprehensiveincome.Ifthecontingentconsiderationis classified as equity, it should not be re-measured until it is finally settled within equity.

Goodwillisinitiallymeasuredatcostbeingtheexcessoftheaggregateoftheconsideration transferredandtheamountrecognisedfornon-controllinginterestoverthenetidentifiable assetsacquiredandliabilitiesassumed.Ifthefairvalueofthenetassetsacquiredisin excessoftheaggregateconsiderationtransferred,theGroupre-assesseswhetherithas correctlyidentifiedalloftheassetsacquiredandalloftheliabilitiesassumedandreviews theproceduresusedtomeasuretheamountstoberecognisedattheacquisitiondate.Ifthe re-assessmentstillresultsinanexcessofthefairvalueofnetassetsacquiredoverthe aggregate consideration transferred, then the gain is recognised in the profit or loss.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS

SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

vi.

Business combinations and goodwill (continued)

Afterinitialrecognition,goodwillismeasuredatcostlessanyaccumulatedimpairment losses.Forthepurposeofimpairmenttesting,goodwillacquiredinabusinesscombination is,fromtheacquisitiondate,allocatedtoeachoftheGroup’scash-generatingunitsthatare expectedtobenefitfromthecombination,irrespectiveofwhetherotherassetsorliabilities of the acquiree are assigned to those units.

Wheregoodwillformspartofacash-generatingunitandpartoftheoperationwithinthat unitisdisposedof,thegoodwillassociatedwiththedisposedoperationisincludedinthe carryingamountoftheoperationwhendeterminingthegainorlossondisposalofthe operation.Goodwilldisposedinthiscircumstanceismeasuredbasedontherelativevalues of the operation disposed and the portion of the cash-generating unit retained.

vii.

Impairment of non-financial assets

Intangibleassetsthathaveanindefiniteusefullifeorintangibleassetsnotreadyforuseare notsubjecttoamortisationandaretestedannuallyforimpairment.Assetsthataresubjectto amortisationarereviewedforimpairmentwhenevereventsorchangesincircumstances indicatethatthecarryingamountmaynotberecoverable.Animpairmentlossisrecognised fortheamountbywhichtheasset’scarryingamountexceedsitsrecoverableamount.The recoverableamountisthehigherofanasset’sfairvaluelesscostsofdisposalandvaluein use.Forthepurposesofassessingimpairment,assetsaregroupedatthelowestlevelsfor whichtherearelargelyindependentcashinflows(cash-generatingunits).Priorimpairments ofnon-financialassets(otherthangoodwill)arereviewedforpossiblereversalateach reporting date.

viii.

• • • Impairment of financial assets

Furtherdisclosuresrelatingtoimpairmentoffinancialassetsarealsoprovidedinthe following notes:

Disclosures for significant assumptions (Note 3)

Debt instruments at fair value through statement of income and OCI (Note 32)

Trade receivables, including contract assets (Note 32)

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

viii.

Impairment of financial assets (continued)

TheGrouprecognisesanallowanceforexpectedcreditlosses(ECLs)foralldebt instrumentsnotheldatfairvaluethroughprofitorloss.ECLsarebasedonthedifference betweenthecontractualcashflowsdueinaccordancewiththecontractandallthecash flowsthattheGroupexpectstoreceive,discountedatanapproximationoftheoriginal effectiveinterestrate.Theexpectedcashflowswillincludecashflowsfromthesaleof collateral held or other credit enhancements that are integral to the contractual terms.

ECLsarerecognisedintwostages.Forcreditexposuresforwhichtherehasnotbeena significantincreaseincreditrisksinceinitialrecognition,ECLsareprovidedforcredit lossesthatresultfromdefaulteventsthatarepossiblewithinthenext12-months(a12monthECL).Forthosecreditexposuresforwhichtherehasbeenasignificantincreasein creditrisksinceinitialrecognition,alossallowanceisrequiredforcreditlossesexpected overtheremaininglifeoftheexposure,irrespectiveofthetimingofthedefault(alifetime ECL).

Fortradereceivablesandcontractassets,theGroupappliesasimplifiedapproachin calculatingECLs.Therefore,theGroupdoesnottrackchangesincreditrisk,butinstead recognisesalossallowancebasedonlifetimeECLsateachreportingdate.TheGrouphas establishedaprovisionmatrixthatisbasedonitshistoricalcreditlossexperience,adjusted whereapplicableforforward-lookingfactorsspecifictothedebtorsandtheeconomic environment.

TheGroupconsidersafinancialassetindefaultwhencontractualpaymentsare90-180days pastduedependingonthenatureofthefinancialasset.However,incertaincases,the Groupmayalsoconsiderafinancialassettobeindefaultwheninternalorexternal informationindicatesthattheGroupisunlikelytoreceivetheoutstandingcontractual amountsinfullbeforetakingintoaccountanycreditenhancementsheldbytheGroup.A financialassetiswrittenoffwhenthereisnoreasonableexpectationofrecoveringthe contractual cash flows.

ix.

Intangible assets

Goodwill

Goodwillarisesontheacquisitionofsubsidiariesandrepresentstheexcessofthe considerationtransferredovertheGroup’sinterestinnetfairvalueofthenetidentifiable assets,liabilitiesandcontingentliabilitiesoftheacquireeandthefairvalueofthenoncontrolling interest in the acquiree.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued) ix.

Intangible assets (continued)

Goodwill (continued)

Forthepurposeofimpairmenttesting,goodwillacquiredinabusinesscombinationis allocatedtoeachofthecash-generatingunits(CGUs),orgroupsofCGUs,thatisexpected tobenefitfromthesynergiesofthecombination.Eachunitorgroupofunitstowhichthe goodwillisallocatedrepresentsthelowestlevelwithintheentityatwhichthegoodwillis monitored for internal management purposes. Goodwill is monitored at the CGU level.

Goodwillimpairmentreviewsareundertakenannuallyormorefrequentlyifeventsor changesincircumstancesindicateapotentialimpairment.Thecarryingvalueofgoodwillis comparedtotherecoverableamount,whichisthehigherofvalueinuseandthefairvalue lesscostsofdisposal.Anyimpairmentisrecognisedimmediatelyasanexpenseandisnot subsequently reversed.

Brands and licenses

Separatelyacquiredbrandsandlicensesaremeasuredoninitialrecognitionathistorical cost.Followinginitialrecognition,intangibleassetsarecarriedatcostlessanyaccumulated amortisationorimpairment.Brandsandlicensesacquiredinabusinesscombinationare recognisedatfairvalueattheacquisitiondate.TheGroup’sbrandsandlicenseshavebeen assessedtohaveanindefiniteusefullifeandimpairmenttestsareundertakenannuallyor more frequently if events or changes in circumstances indicate a potential impairment.

Computer software

Costsassociatedwithmaintainingcomputersoftwareprogramsarerecognisedasan expenseasincurred.Developmentcoststhataredirectlyattributabletothedesignand testingofidentifiableanduniquesoftwareproductscontrolledbytheGrouparerecognised as intangible assets when the following criteria are met:

• • • • • Management intends to complete the software product and use or sell it; There is an ability to use or sell the software product;

Itistechnicallyfeasibletocompletethesoftwareproductsothatitwillbeavailablefor use; Itcanbedemonstratedhowthesoftwareproductwillgenerateprobablefuture economic benefits;

Adequatetechnical,financialandotherresourcestocompletethedevelopmentandto use or sell the software product are available; and

ANSA

McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Intangible assets (continued)

Computer software (continued)

Theexpenditureattributabletothesoftwareproductduringitsdevelopmentcanbe reliably measured.

Directlyattributablecostscapitalisedaspartofthesoftwareproductincludethesoftware development employee costs and an appropriate portion of relevant overheads.

Otherdevelopmentexpendituresthatdonotmeetthesecriteriaarerecognisedasanexpense asincurred.Developmentcostspreviouslyrecognisedasanexpensearenotrecognisedas an asset in a subsequent period.

Computersoftwaredevelopmentcostsrecognisedasassetsareamortisedovertheir estimated useful lives, which do not exceed ten (10) years.

Cash and short term deposits

Cashandshorttermdepositsintheconsolidatedstatementoffinancialpositioncomprise cashatbanksandonhandandshorttermdepositswithanoriginalmaturityofthreemonths orless.Forthepurposeoftheconsolidatedstatementofcashflows,cashandcash equivalentsconsistofcashandshorttermdepositsasdefinedabove,netofshortterm borrowings, fixed deposits and the Central Bank reserve (Note 15).

Foreign currency translation

Foreign currency transactions

TheGroup’sconsolidatedfinancialstatementsarepresentedinTrinidadandTobagodollars (expressedinthousands),whichisalsotheparentcompany’sfunctionalcurrency.Each entityintheGroupdeterminesitsownfunctionalcurrencyanditemsincludedinthe financial statements of each entity are measured using that functional currency.

Transactionsinforeigncurrenciesareinitiallyrecordedinthefunctionalcurrencyattherate prevailingatthedateofthetransaction.Monetaryassetsandliabilitiesdenominatedin foreigncurrenciesaretranslatedintoTrinidadandTobagodollarsattherateofexchange rulingatthereportingdate.Non-monetaryassetsandliabilitiesaretranslatedusing exchangeratesthatexistedatthedatesoftheinitialtransactions.Exchangedifferenceson foreign currency transactions are recognised in the consolidated statement of income.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS

SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

xi.

Foreign currency translation (continued)

Foreign entities

Onconsolidation,assetsandliabilitiesofforeignentitiesaretranslatedintoTrinidadand Tobagodollarsattherateofexchangerulingatthereportingdateandtheirstatementsof incomearetranslatedattheexchangeratesprevailingatthedateofthetransactions.The exchangedifferencesarisingonre-translationarerecognisedinothercomprehensive incomeandaccumulatedinequity.Ondisposalofaforeignoperation,thedeferred cumulativeamountrecognisedinothercomprehensiveincomerelatingtothatparticular foreign operation is recognised in the consolidated statement of income.

Goodwillandfairvalueadjustmentsarisingontheacquisitionofaforeignentityare translatedattherateofexchangeprevailingattheendofthereportingperiod.Exchange differences arising are recognised in other comprehensive income.

xii.

Borrowing costs

Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofan assetthatnecessarilytakesasubstantialperiodoftimetogetreadyforitsintendeduseor salearecapitalisedaspartofthecostoftherespectiveassets.Allotherborrowingcostsare expensedintheperiodtheyoccur.Borrowingcostsconsistofinterestandothercosts incurred in connection with the borrowing of funds.

xiii.

Property, plant and equipment

Capitalworkinprogressisstatedatcost,netofaccumulatedimpairmentlosses,ifany. Property,plantandequipmentarestatedatcost,netofaccumulateddepreciationand accumulatedimpairmentlosses,ifany.Suchcostincludesthecostofreplacingpartofthe property,plantandequipmentandborrowingcostsforlong-termconstructionprojectsifthe recognitioncriteriaaremet.Whensignificantpartsofproperty,plantandequipmentare requiredtobereplacedatintervals,theGrouprecognisessuchpartsasindividualassets withspecificusefullivesanddepreciatesthemaccordingly.Allotherrepairsand maintenance costs are charged to the consolidated statement of income when incurred.

Thefreeholdbuildingsofnon-manufacturingcompaniesaredepreciatedonthestraightline basisat2%perannum.Depreciationonthefreeholdbuildingsofthemajormanufacturing subsidiariesischargedonthestraightlinebasisatratesvaryingbetween2%and5%.Land and capital work in progress are not depreciated.

Depreciationisprovidedonplantandotherassets,eitheronthestraightlineorreducing balancebasis,atratesvaryingbetween5%and331/3%whichareconsideredsufficientto write off the assets over their estimated useful lives.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued) xiii.

Property, plant and equipment (continued)

Theresidualvalues,estimatedusefullivesandmethodsofdepreciationofproperty,plant and equipment are reviewed annually and adjusted prospectively if appropriate.

Anitemofproperty,plantandequipmentisderecognisedupondisposalorwhennofuture economicbenefitsareexpectedfromitsuseordisposal.Anygainorlossarisingonderecognition of the asset is included in the consolidated statement of income.

Investment properties

Investmentpropertiesprincipallycompriseofficebuildingsandlandnotoccupiedbythe Group,whichareheldforlongtermrentalyieldsandcapitalappreciation.Investment propertiesareclassifiedasnon-currentassetsandcarriedatcostlessaccumulated depreciation and accumulated impairment losses.

Buildingsaredepreciatedonastraightlinebasisatarateof2%perannum.Landisnot depreciated.

Investmentpropertiesarederecognisedeitherwhentheyhavebeendisposedof(i.e.,atthe datetherecipientobtainscontrol)orwhentheyarepermanentlywithdrawnfromuseandno futureeconomicbenefitisexpectedfromtheirdisposal.Thedifferencebetweenthenet disposalproceedsandthecarryingamountoftheassetisrecognisedinprofitorlossinthe periodofderecognition.Theamountofconsiderationtobeincludedinthegainorloss arisingfromthederecognitionofinvestmentpropertyisdeterminedinaccordancewiththe requirements for determining the transaction price in IFRS 15.

Transfersaremadetoorfrominvestmentpropertyonlywhenthereisachangeinuse.If owneroccupiedpropertybecomesinvestmentproperty,theGroupaccountsforsuch propertyinaccordancewiththepolicyunderproperty,plantandequipmentuptothedate of change in use.

Financial instruments – initial recognition

Measurement categories of financial assets and liabilities

TheGroupclassifiesallofitsfinancialassetsbasedonthebusinessmodelformanagingthe assets and the asset’s contractual terms, measured at either:

Amortised cost, as explained in Note 2 (xvi) below.

FVOCI, as explained in Note 2 (xvi) below.

FVPL

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES

(continued)

xvi.

Financial assets and liabilities

Financial assets

a) Initial recognition and subsequent measurement

Allregularwaypurchasesorsalesoffinancialassetsarerecognisedandderecognisedona tradedatebasis.Regularwaypurchasesorsalesarepurchasesorsalesoffinancialassets thatrequiredeliveryofassetswithinthetimeframeestablishedbyregulationorconvention in the marketplace.

Allrecognisedfinancialassetsaresubsequentlymeasuredintheirentiretyateither amortised cost or fair value, depending on the classification of the financial assets.

Amortised cost and effective interest method theassetisheldwithinabusinessmodelwhoseobjectiveistoholdassetsinorderto collect contractual cash flows; and thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflows thataresolelypaymentsofprincipalandinterest("SPPI")ontheprincipalamount outstanding ("the SPPI test").

Debt instruments that meet the following conditions are subsequently measured at amortised costlessimpairmentloss(exceptfordebtinstrumentsthataredesignatedasatfairvalue through the statement of income on initial recognition):

Theeffectiveinterestmethodisamethodofcalculatingtheamortisedcostofadebt instrumentandofallocatinginterestincomeovertherelevantperiod.Theeffectiveinterest rateistheratethatexactlydiscountsestimatedfuturecashreceipts(includingallfeesand pointspaidorreceivedthatformanintegralpartoftheeffectiveinterestrate,transaction costsandotherpremiumsordiscounts)throughtheexpectedlifeofthedebtinstrument,or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Incomeisrecognisedonaneffectiveinterestbasisfordebtinstrumentsmeasured subsequentlyatamortisedcost.Interestincomeisrecognisedintheconsolidatedstatement of comprehensive income and is included in Note 24.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES

xvi.

(continued)

Financial assets and liabilities (continued)

Financial assets (continued)

a) Initial recognition and subsequent measurement (continued)

Financial assets at fair value through other comprehensive income (FVOCI)

Equity instruments at fair value through other comprehensive income (FVOCI)

Oninitialrecognition,theGroupcanmakeanirrevocableelection(onaninstrument-byinstrumentbasis)todesignateinvestmentsinequityinstrumentsasatFVOCI.Designation at FVOCI is not permitted if the equity investment is held for trading.

A financial asset is held for trading if:

it has been acquired principally for the purpose of selling it in the near term; or oninitialrecognitionitispartofaportfolioofidentifiedfinancialinstrumentsthatthe Groupmanagestogetherandhasevidenceofarecentactualpatternofshort-term profittaking; or itisaderivativethatisnotdesignatedandeffectiveasahedginginstrumentora financial guarantee.

InvestmentsinequityinstrumentsatFVOCIareinitiallymeasuredatfairvalueplus transactioncosts.Subsequently,theyaremeasuredatfairvaluewithgainsandlossesarising fromchangesinfairvaluerecognisedinothercomprehensiveincomeandaccumulatedin theinvestmentsrevaluationreserve.Thecumulativegainorlosswillnotbereclassifiedto the statement of income on disposal of the investments.

TheGroupdoesnothaveanyequityinstrumentsthatarecarriedatFVOCIoninitial application of IFRS 9, Financial Instruments.

Debt instruments at fair value through other comprehensive income (FVOCI)

TheGroupappliedtheFVOCIcategoryunderIFRS9,fordebtinstrumentsmeasuredatfair value through other comprehensive income when both of the following conditions are met:

theinstrumentisheldwithinabusinessmodel,theobjectiveofwhichisachievedby both collecting contractual cash flows and selling financial assets, thecontractualcashflowsofanassetgiverisetopaymentsonspecifieddatesthatare solelypaymentsofprincipalandinterest(“SPPI”)ontheprincipalamountoutstanding (“the SPPI test”).

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES

xvi.

(continued)

Financial assets and liabilities (continued)

Financial assets (continued)

a) Initial recognition and subsequent measurement (continued)

Financial assets at fair value through other comprehensive income (FVOCI) (continued)

Debt instruments at fair value through other comprehensive income (FVOCI) (continued)

FVOCIdebtinstrumentsaresubsequentlymeasuredatfairvaluewithgainsandlosses arisingduetochangesinfairvaluerecognisedinothercomprehensiveincome.Interest incomeisrecognisedinprofitorlossinthesamemannerasforfinancialassetsmeasuredat amortised cost.

Financial assets at fair value through statement of income (FVSI)

InvestmentsinequityinstrumentsareclassifiedasFVSI,unlesstheGroupdesignatesan investmentthatisnotheldfortradingasfairvaluethroughothercomprehensiveincome (FVOCI)oninitialrecognition.TheGrouphasdesignatedallinvestmentsinequity instruments that are held for trading as FVSI on initial application of IFRS 9.

DebtinstrumentsthatdonotmeettheamortisedcostcriteriaaremeasuredasFVSI.In addition,debtinstrumentsthatmeettheamortisedcostcriteriabutaredesignatedasFVSI aremeasuredatFVSI.AdebtinstrumentmaybedesignatedasFVSIuponinitial recognitionifsuchdesignationeliminatesorsignificantlyreducesameasurementor recognitioninconsistencythatwouldarisefrommeasuringassetsorliabilitiesor recognising the gains and losses on them on different bases.

DebtinstrumentsarereclassifiedfromamortisedcosttoFVSIwhenthebusinessmodelis changedsuchthattheamortisedcostcriteriaarenolongermet.Reclassificationofdebt instrumentsthataredesignatedasFVSIoninitialrecognitionisnotallowed.TheGrouphas not designated any debt instrument as FVSI.

FinancialassetsatFVSIaremeasuredatfairvalueattheendofeachreportingperiod,with anygainsorlossesarisingonremeasurementrecognisedinthestatementofincome.The netgainorlossrecognisedinthestatementofincomeisincludedinNote24.Fairvalueis determined in the manner described in Note 31.

InterestincomeondebtinstrumentsdesignatedatFVSIisincludedinthenetgainorloss described above.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

xvi.

Financial assets and liabilities (continued)

Financial assets (continued)

a) Initial recognition and subsequent measurement (continued)

Financial assets at fair value through statement of income (FVSI) (continued)

DividendincomeoninvestmentsinequityinstrumentsatFVSIisrecognisedinthe statementofincomewhentheGroup’srighttoreceivethedividendsisestablishedin accordance with IFRS 15 Revenue and is included in the net gain or loss described above.

Foreign exchange gains and losses

Thefairvalueoffinancialassetsdenominatedinaforeigncurrencyisdeterminedinthat foreigncurrencyandtranslatedatthespotrateattheendofeachreportingperiod.The foreign exchange component forms part of its fair value gain or loss.

Therefore:

forfinancialassetsthatareclassifiedasFVSI,theforeignexchangecomponentis recognised in the statement of income; forequityinstrumentsthataredesignatedasFVOCI,anyforeignexchangecomponent is recognised in other comprehensive income; fordebtinstrumentsthataredesignatedasFVOCI,anyforeignexchangecomponentis recognised in the statement of income; and forforeigncurrencydenominateddebtinstrumentsmeasuredatamortisedcostatthe endofeachreportingperiod,theforeignexchangegainsandlossesaredetermined basedontheamortisedcostofthefinancialassetsandarerecognisedinthe ‘investment income’ line item in the statement of income.

b)

Impairment of financial assets

Overview of the ECL principles

TheGrouprecordstheallowanceforexpectedcreditlossesforallloansandotherdebt, financialassetsnotheldatFVPL,togetherwithloancommitmentsandfinancialguarantee contracts,inthissectionallreferredtoas‘financialinstruments’.Equityinstrumentsarenot subject to impairment under IFRS 9.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

xvi.

b)

Financial assets and liabilities (continued)

Financial assets (continued)

Impairment of financial assets (continued)

Overview of the ECL principles (continued)

TheGroupusesthegeneralprobabilityofdefaultapproachwhencalculatingECLs.The ECLallowanceisbasedonthecreditlossesexpectedtoariseoverthelifeoftheasset(the lifetimeexpectedcreditlossorLTECL),unlesstherehasbeennosignificantincreasein creditrisksinceorigination,inwhichcase,theallowanceisbasedonthe12months’ expectedcreditloss(12mECL)asoutlinedinthesub-sectionbelow"TheCalculationof ECLs".TheGroup’spoliciesfordeterminingiftherehasbeenasignificantincreasein credit risk are set out in Note 32.

The12mECListheportionofLTECLsthatrepresenttheECLsthatresultfromdefault eventsonafinancialinstrumentthatarepossiblewithinthe12monthsafterthereporting date.

BothLTECLsand12mECLsarecalculatedoneitheranindividualbasisoracollective basis,dependingonthenatureoftheunderlyingportfoliooffinancialinstruments.The Group’spolicyforgroupingfinancialassetsmeasuredonacollectivebasisisexplainedin Note 32.

TheGrouphasestablishedapolicytoperformanassessment,attheendofeachreporting period,ofwhetherafinancialinstrument’screditriskhasincreasedsignificantlysince initialrecognition,byconsideringthechangeintheriskofdefaultoccurringoverthe remaining life of the financial instrument. This is further explained in Note 32.

ANSA McAL LIMITED AND

ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

xvi.

Financial assets and liabilities (continued)

Financial assets (continued)

Impairment of financial assets (continued)

Overview of the ECL principles (continued)

The calculation of ECLs

The mechanics of the ECL method are summarised below:

Stage 1The12mECLiscalculatedastheportionofLTECLsthatrepresentthe ECLsthatresultfromdefaulteventsonafinancialinstrumentthatare possiblewithinthe12monthsafterthereportingdate.TheGroup calculatesthe12mECLallowancebasedontheexpectationofadefault occurringinthe12monthsfollowingthereportingdate.Theseexpected 12-monthdefaultprobabilitiesareappliedtoaforecastEADand multipliedbytheexpectedLGDanddiscountedbyanapproximationto theoriginalEIR.Thiscalculationismadeforeachofthethreescenarios, as explained above.

Stage 2Whenafinancialinstrumenthasshownasignificantincreaseincredit risksinceorigination,theGrouprecordsanallowancefortheLTECLs. Themechanicsaresimilartothoseexplainedabove,includingtheuseof multiplescenarios,butPDsandLGDsareestimatedoverthelifetimeof theinstrument.Theexpectedcashshortfallsarediscountedbyan approximation to the original EIR.

Stage 3Forfinancialinstrumentsconsideredcredit-impaired(asdefinedinNote 32),theGrouprecognisesthelifetimeexpectedcreditlosses.Themethod is similar to that for Stage 2 assets, with the PD set at 100%.

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2. SIGNIFICANT ACCOUNTING POLICIES

xvi.

b)

(continued)

Financial assets and liabilities (continued)

Financial assets (continued)

Impairment of financial assets (continued)

Forward looking information

InitsECLmodels,theGroupreliesonabroadrangeofforwardlookinginformationas economic inputs, such as GDP growth, unemployment rates and Central Bank rates.

TheinputsandmodelsusedforcalculatingECLsmaynotalwayscaptureallcharacteristics ofthemarketatthereportingdate.Toreflectthis,qualitativeadjustmentsoroverlaysare occasionallymadeastemporaryadjustmentswhensuchdifferencesaresignificantly material.Detailedinformationabouttheseinputsandsensitivityanalysisareprovidedin Note 32.

Collateral valuation

Tomitigateitscreditrisksonfinancialassets,theGroupseekstousecollateral,where possible.Thecollateralcomesinvariousforms,suchascash,securities,lettersof credit/guarantees,realestate,receivables,inventoriesandothernon-financialassetssuchas vehiclesandequipment,inthecaseoftheGroup'sassetfinancingportfolios.Collateral, unlessrepossessed,isnotrecordedontheGroup’sconsolidatedstatementoffinancial position.However,thefairvalueofcollateralaffectsthecalculationofECLs.Itisgenerally assessed,ataminimum,atinceptionandre-assessedonanannualbasis.Detailsofthe impact of the Group’s various credit enhancements are disclosed in Note 32.

Totheextentpossible,theGroupusesactivemarketdataforvaluingfinancialassetsheldas collateral.Otherfinancialassetswhichdonothavereadilydeterminablemarketvaluesare valuedusingmodels.Non-financialcollateral,suchasrealestate,isvaluedbasedon independentvaluationdataprovidedbythirdpartiessuchasmortgagebrokersor independent valuators.

ANSA

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2. SIGNIFICANT ACCOUNTING POLICIES (continued)

xvi.

b)

c)

Financial assets and liabilities (continued)

Financial assets (continued)

Impairment of financial assets (continued)

Collateral repossessed

TheGroup’spolicyistodeterminewhetherarepossessedassetcanbebestusedforits internaloperationsorshouldbesold.Assetsdeterminedtobeusefulfortheinternal operations are transferred to their relevant asset category at the valuation cost of the asset.

Initsnormalcourseofbusiness,theGroupdoesnotphysicallyrepossesspropertiesorother assetsinitsretailportfolio,butitsometimesengagesexternalagentstorecovertheasset,to settle outstanding. Any surplus funds are returned to the customers/obligors.

Write-offs

FinancialassetsarewrittenoffeitherpartiallyorintheirentiretyonlywhentheGrouphas stoppedpursuingtherecovery.Iftheamounttobewrittenoffisgreaterthanthe accumulatedlossallowance,thedifferenceisfirsttreatedasanadditiontotheallowance thatisthenappliedagainstthegrosscarryingamount.Anysubsequentrecoveriesare credited to credit loss expense.

Derecognition of financial assets

TheGroupderecognisesafinancialassetonlywhenthecontractualrightstothecashflows fromtheassetexpire,orwhenittransfersthefinancialassetandsubstantiallyalltherisks andrewardsofownershipoftheassettoanotherentity.IftheGroupneithertransfersnor retainssubstantiallyalltherisksandrewardsofownershipandcontinuestocontrolthe transferredasset,theGrouprecognisesitsretainedinterestintheassetandanassociated liabilityforamountsitmayhavetopay.IftheGroupretainssubstantiallyalltherisksand rewardsofownershipofatransferredfinancialasset,theGroupcontinuestorecognisethe financial asset and also recognises a collateralised borrowing for the proceeds received.

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2. SIGNIFICANT ACCOUNTING POLICIES

xvi. c)

b)

xvii.

(continued)

Financial assets and liabilities (continued)

assets (continued)

Derecognition of financial assets (continued)

Onderecognitionofafinancialassetmeasuredatamortisedcost,thedifferencebetweenthe asset’scarryingamountandthesumoftheconsiderationreceivedandreceivableis recognisedinthestatementofincome.Onderecognitionofanequityinstrumentthatis classifiedasFVOCI,thecumulativegainorlosspreviouslyaccumulatedintheinvestment revaluationreserveisnotreclassifiedtothestatementofothercomprehensiveincome,but isreclassifiedtoretainedearnings.OnderecognitionofdebtinstrumentsatFVOCI, cumulativegainsorlossespreviouslyrecognisedinothercomprehensiveincomeare reclassified from other comprehensive income to profit and loss.

Financial liabilities

Initial recognition and subsequent measurement

FinancialliabilitieswithinthescopeofIFRS9areclassifiedasfinancialliabilitiesatfair valuethroughthestatementofincome,loansandborrowings,orasderivativesdesignated as hedging instruments in an effective hedge as appropriate.

TheGroupdeterminestheclassificationofitsfinancialliabilitiesatinitialrecognition.All financialliabilitiesarerecognisedinitiallyatfairvalue.TheGroup’sfinancialliabilities includeotherpayables,bankoverdrafts,depositliabilitiesanddebtsecuritiesinissue.The Grouphasnotdesignatedanyfinancialliabilitiesuponinitialrecognitionasatfairvalue through statement of income.

Derecognition of financial liabilities

Afinancialliabilityisderecognisedwhentheobligationundertheliabilityisdischarged, cancelledorhasexpired.Whenanexistingfinancialliabilityisreplacedbyanotherfromthe samelenderonsubstantiallydifferentterms,orthetermsofanexistingliabilityare substantiallymodified,suchanexchangeormodificationistreatedasaderecognisingofthe originalliabilityandtherecognitionofanewliability,andthedifferenceintherespective carrying amounts is recognised in the statement of income.

Fair value measurement

TheGroupmeasurescertainfinancialinstrumentsatfairvalueateachreportingdate.Also, fairvaluesoffinancialinstrumentsmeasuredatamortisedcostaredisclosedinNote31. Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityin an orderly transaction between market participants at the measurement date.

Financial

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2. SIGNIFICANT ACCOUNTING POLICIES (continued) xvii.

Fair value measurement (continued)

Thefairvaluemeasurementisbasedonthepresumptionthatthetransactiontoselltheasset or transfer the liability takes place either:

• •

In the principal market for the asset or liability, or Intheabsenceofaprincipalmarket,inthemostadvantageousmarketfortheassetor liability.

The principal or the most advantageous market must be accessible by the Group.

Thefairvalueofanassetoraliabilityismeasuredusingtheassumptionsthatmarket participantswouldusewhenpricingtheassetorliability,assumingthatmarketparticipants act in their economic best interest.

Afairvaluemeasurementofanon-financialassettakesintoaccountamarketparticipant's abilitytogenerateeconomicbenefitsbyusingtheassetinitshighestandbestuseorby selling it to another market participant that would use the asset in its highest and best use.

TheGroupusesvaluationtechniquesthatareappropriateinthecircumstancesandfor whichsufficientdataareavailabletomeasurefairvalue,maximisingtheuseofrelevant observable inputs and minimising the use of unobservable inputs.

Allassetsandliabilitiesforwhichfairvalueismeasuredordisclosedintheconsolidated financialstatementsarecategorisedwithinthefairvaluehierarchy,describedasfollows, based on the lowest level input that is significant to the fair value measurement as a whole:

• • •

Level1-Quoted(unadjusted)marketpricesinactivemarketsforidenticalassetsor liabilities;

Level2-Valuationtechniquesforwhichthelowestlevelinputthatissignificanttothe fair value measurement is directly or indirectly observable; and

Level3-Valuationtechniquesforwhichthelowestlevelinputthatissignificanttothe fair value measurement is unobservable.

SeeNote31forfurtherdetailsonthevaluationtechniquesandinputsusedtoaccountfor financial instruments measured at fair value.

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2. SIGNIFICANT ACCOUNTING POLICIES (continued)

xvii.

Fair value measurement (continued)

Forassetsandliabilitiesthatarerecognisedintheconsolidatedfinancialstatementsona recurringbasis,theGroupdetermineswhethertransfershaveoccurredbetweenlevelsinthe hierarchybyre-assessingcategorisation(basedonthelowestlevelinputthatissignificant tothefairvaluemeasurementasawhole)attheendofeachreportingperiod.Forthe purposeoffairvaluedisclosures,theGrouphasdeterminedclassesofassetsonthebasisof thenature,characteristicsandrisksoftheassetorliabilityandthelevelofthefairvalue hierarchy as explained above.

xviii.

Leases

TheGroupassessesatcontractinceptionwhetheracontractis,orcontains,alease.Thatis, ifthecontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftime in exchange for consideration.

Group as a lessee

TheGroupappliesasinglerecognitionandmeasurementapproachforallleases,exceptfor short-term leases and leases of low-value assets.

Right-of-use assets

TheGrouprecognisesright-of-useassetsatthecommencementdateofthelease(i.e., thedatetheunderlyingassetisavailableforuse).Right-of-useassetsaremeasuredat cost,lessanyaccumulateddepreciationandimpairmentlosses,andadjustedforany remeasurementofleaseliabilities.Thecostofright-of-useassetsincludestheamount oftheinitialleaseliabilitiesrecognised,initialdirectcostsincurred,andlease paymentsmadeonorbeforethecommencementdatelessanyleaseincentives received.Right-of-useassetsaredepreciatedonastraight-linebasisovertheshorterof the lease term and the estimated useful lives of the assets, as follows:

Land and building

Plant and machinery

2 to 30 years

3 to 5 years

ANSA

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued) xviii.

Leases (continued)

Group as a lessee (continued)

i) Right-of-use assets (continued)

IfownershipoftheleasedassettransferstotheGroupattheendoftheleasetermor thecostreflectstheexerciseofapurchaseoption,depreciationiscalculatedusingthe estimated useful life of the asset.

Theright-of-useassetsarealsosubjecttoimpairment.Refertotheaccountingpolicies in Note 2 (vii).

ii)

Lease liabilities

Atthecommencementdateofthelease,theGrouprecognisesleaseliabilitiesmeasured atthepresentvalueofleasepaymentstobemadeovertheleaseterm.Thelease paymentsincludefixedpayments(includinginsubstancefixedpayments)lessany leaseincentivesreceivable,variableleasepaymentsthatdependonanindexorarate, andamountsexpectedtobepaidunderresidualvalueguarantees.Theleasepayments alsoincludetheexercisepriceofapurchaseoptionreasonablycertaintobeexercised bytheGroupandpaymentsofpenaltiesforterminatingthelease,iftheleaseterm reflects the Group exercising the option to terminate.

Variableleasepaymentsthatdonotdependonanindexoraratearerecognisedas expenses(unlesstheyareincurredtoproduceinventories)intheperiodinwhichthe event or condition that triggers the payment occurs.

Incalculatingthepresentvalueofleasepayments,theGroupusesitsincremental borrowingrateattheleasecommencementdateiftheinterestrateimplicitinthelease isnotreadilydeterminable.Afterthecommencementdate,theamountoflease liabilitiesisincreasedtoreflecttheaccretionofinterestandreducedforthelease paymentsmade.Inaddition,thecarryingamountofleaseliabilitiesisremeasuredif thereisamodification,achangeintheleaseterm,achangeintheleasepayments(e.g., changestofuturepaymentsresultingfromachangeinanindexorrateusedto determinesuchleasepayments)orachangeintheassessmentofanoptiontopurchase the underlying asset.

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2. SIGNIFICANT ACCOUNTING POLICIES (continued) xviii. iii)

Leases (continued)

Group as a lessee (continued)

Short-term leases and leases of low-value assets

TheGroupappliestheshort-termleaserecognitionexemptiontoitsshort-termleases of$861(i.e.,thoseleasesthathavealeasetermof12monthsorlessfromthe commencementdateanddonotcontainapurchaseoption).Italsoappliestheleaseof low-valueassetsrecognitionexemptiontoleasesof$730thatareconsideredoflow value.Leasepaymentsonshort-termleasesandleasesoflow-valueassetsare recognised as an expense on a straight-line basis over the lease term.

Group as a lessor

TheGroupassessesatcontractinceptionwhetheracontractis,orcontains,alease.Thatis, ifthecontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftime in exchange for consideration.

xix.

Inventories

Inventoriesandworkinprogressarevaluedatthelowerofcostandnetrealisablevalue. Costisarrivedatonthefirst-infirst-outorattheaveragemethod,including,inthecaseof manufacturingsubsidiaries,aproportionofoverheads.Netrealisablevalueistheestimated sellingpriceintheordinarycourseofbusiness,lessestimatedcostsofcompletionand estimated costs necessary to make the sale.

xx.

Reinsurance assets

TheGroupcedesreinsuranceinthenormalcourseofbusiness.Reinsuranceassetsprimarily includebalancesduefromreinsurancecompaniesforcededinsuranceliabilities.Premiums onreinsuranceassumedarerecognisedasrevenueinthesamemannerastheywouldbeif thereinsurancewereconsidereddirectbusiness,takingintoaccounttheproduct classificationofthereinsuredbusiness.Amountsduefromreinsurersareestimatedina mannerconsistentwiththeassociatedreinsuredpoliciesandinaccordancewiththe reinsurance contract. Premiums ceded and claims reimbursed are presented on a gross basis.

ThebenefittowhichtheGroupisentitledunderitsreinsurancecontractheldisrecognised asreinsuranceassets.Theseassetsconsistofshort-termbalancesduefromreinsurers,as wellaslongertermreceivablesthataredependentontheexpectedclaimsandbenefits arising under the related reinsured insurance contract.

Animpairmentreviewisperformedonallreinsuranceassetswhenanindicationof impairmentoccurs.Reinsuranceassetsareimpairedonlyifthereisobjectiveevidencethat theGroupmaynotreceiveallamountsduetoitunderthetermsofthecontractanditcanbe measured reliably.

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2. SIGNIFICANT ACCOUNTING POLICIES

(continued)

xxi.

Income taxes

Current income tax

Currentincometaxassetsandliabilitiesforthecurrentandpriorperiodsaremeasuredat theamountexpectedtoberecoveredfromorpaidtothetaxationauthorities.Thetaxrates andtaxlawsusedtocomputetheamountarethosethatareenactedorsubstantivelyenacted atthereportingdateinthecountrieswheretheGroupoperatesandgeneratestaxable income.

Deferred income tax

Deferredincometaxisprovidedusingtheliabilitymethodonalltemporarydifferencesat thereportingdatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamounts forfinancialreportingpurposesatthereportingdate.Deferredtaxassetsandliabilitiesare measuredatthetaxratethatisexpectedtoapplytotheperiodwhentheassetisrealisedor the liability is settled based on the enacted tax rate at the reporting date.

Thecarryingamountofdeferredincometaxassetsisreviewedateachreportingdateand reducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbe availabletoallowallorpartofthedeferredincometaxassettobeutilised.Unrecognised deferredincometaxassetsarere-assessedateachreportingdateandarerecognisedtothe extentthatithasbecomeprobablethatfuturetaxableprofitwillallowthedeferredtaxtobe recovered.

Deferredtaxrelatingtoitemsrecognisedoutsideprofitorlossisrecognisedoutsideprofit orloss.Deferredtaxitemsarerecognisedincorrelationtotheunderlyingtransactioneither in other comprehensive income or directly in equity.

xxii. Employee benefits

TheGroupoperatesmultiplepensionplanswithdefinedcontribution,definedbenefitor hybridschemesforalleligiblefulltimeemployeesoftheGroup.Thepensionplansare governedbytherelevanttrusteerulesandaregenerallyfundedbypaymentsfrom employeesandbytherelevantGroupcompanies,takingaccountoftherulesofthepension plans and recommendations of independent qualified actuaries.

Defined contribution plans

AdefinedcontributionplanisapensionplanunderwhichtheGrouppaysfixed contributionsintoaseparateentity.TheGrouphasnolegalorconstructiveobligationsto payfurthercontributionsifthefunddoesnotholdsufficientassetstopayallemployeesthe benefitsrelatingtoemployeeserviceinthecurrentandpriorperiods.TheGrouphasno furtherpaymentobligationsoncethecontributionshavebeenpaid.Thecontributionsare recognised as employee benefit expense when they are due.

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2.SIGNIFICANT ACCOUNTING POLICIES (continued) xxii.

Employee benefits (continued)

Defined benefit plans

Adefinedbenefitplanisapensionplanthatisnotadefinedcontributionplan.Thepension accountingcostsfortheplansareassessedusingtheprojectedunitcreditmethod.Remeasurements,comprisingofactuarialgainsandlosses,theeffectoftheassetceiling, excludingnetinterest(notapplicabletotheGroup)andthereturnonplanassets(excluding netinterest),arerecognisedimmediatelyintheconsolidatedstatementoffinancialposition withacorrespondingdebitorcredittoretainedearningsthroughothercomprehensive incomeintheperiodinwhichtheyoccur.Re-measurementsarenotreclassifiedtoprofitor lossinsubsequentperiods.Themaximumeconomicbenefitsavailable,aslimitedbythe asset ceiling will crystallise in the form of reductions in future contributions.

Past service costs are recognised in profit or loss on the earlier of:

• • • •

The date of the plan amendment or curtailment, and

The date that the Group recognises restructuring-related costs.

Netinterestiscalculatedbyapplyingthediscountratetothenetdefinedbenefitliabilityor asset.TheGrouprecognisesthefollowingchangesinthenetdefinedbenefitobligation within “administrative and distribution costs” (Note 24):

Servicecostscomprisingcurrentservicecosts,past-servicecosts,gainsandlosseson curtailments and non-routine settlements; and Net interest expense or income.

Other post-employment benefit plans

TheGroupalsoprovidesotherpost-employmentbenefitstotheirretirees.Thesebenefitsare unfunded.Theentitlementtothesebenefitsisbasedontheemployeeremaininginservice uptoretirementageandthecompletionofaminimumserviceperiod.Theexpectedcostsof thesebenefitsareaccruedovertheperiodofemployment,usinganaccountingmethodology similar to that for the defined benefit plans.

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2. SIGNIFICANT ACCOUNTING POLICIES (continued)

xxiii.

Share based payment transactions

TheGroupoperatesanequitysettledsharebasedcompensationplanwherebysenior executivesoftheGrouprenderservicesasconsiderationforstockoptionsoftheparent company.Thecostofequitysettledtransactionsismeasuredbyreferencetothefairvalue oftheoptionsatthedateonwhichtheyweregranted.Thefairvalueisdeterminedbyan independent external valuer using the binomial model.

Thecostofequitysettledtransactionsisrecognised,togetherwithacorrespondingincrease inequity,overtheperiodinwhichtheperformanceand/orserviceconditionsarefulfilled, endingonthedateonwhichtherelevantexecutivebecomesfullyentitledtotheaward(the vestingdate).Thecumulativeexpenserecognisedateachreportingdatereflectstheextent ofwhichthevestingperiodhasexpiredandtheGroup’sbestestimateofthenumberof equityinstrumentsthatwillultimatelyvest.Theexpenseorcreditrecognisedinthe consolidatedstatementofincomefortheperiodrepresentsthemovementincumulative expense recognised as at the beginning and end of that period.

Noexpenseisrecognisedforawardsthatdonotultimatelyvest,exceptforawardswhere vestingisconditionaluponamarketcondition,whicharetreatedasvestingirrespectiveof whetherornotthemarketconditionissatisfied,providedthatallotherperformanceand/or service conditions are satisfied.

Thedilutiveeffectofoutstandingoptionsisreflectedasanadditionalsharedilutioninthe computation of earnings per share (See Note 27).

xxiv. Employee share ownership plan (“ESOP”)

AsstatedinNote16,theGroupoperatesanESOP,wherebyemployeesoftheGrouphave theoptiontoreceiveapercentageoftheirprofitsharebonusesintheformofordinary sharesoftheparentcompany.TheGrouprecognisesanexpensewithinstaffcostswhen bonusesareawarded.SharesacquiredbytheESOParefundedbyparentcompany contributionsandthecostoftheunallocatedESOPsharesispresentedasaseparate component within equity (treasury shares).

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2. SIGNIFICANT ACCOUNTING POLICIES

(continued)

Equity movements

Stated capital

Ordinarystatedcapitalisclassifiedwithinequityandisrecognisedatthefairvalueofthe considerationreceivedbytheGroup.Incrementalcostsdirectlyattributabletotheissueof newsharesoroptionsareshownasareductioninequity,netoftax.Asequityis repurchased,theamountofconsiderationpaidisrecognisedasachargetoequityand reported in the consolidated statement of financial position as treasury shares.

Dividends

Dividendsonordinarysharesarerecognisedasaliabilityanddeductedfromequitywhen theyareapprovedbytheBoardofDirectorsoftheparentcompany.Interimdividendsare deductedfromequitywhentheyarepaid.Dividendsfortheyearthatareapprovedafterthe reporting date are dealt with as an event after the end of reporting date.

Treasury shares

Ownequityinstrumentswhicharere-acquired(“treasuryshares”)aredeductedfromequity. Nogainorlossisrecognisedintheconsolidatedstatementofincomeonthepurchase,sale, issue or cancellation of the Group’s own equity instruments.

Product classification

Insurance contracts

IFRS4,‘InsuranceContracts’definesinsurancecontractsasthosecontainingsignificant insuranceriskattheinceptionofthecontract.Thesignificanceofinsuranceriskis dependentonboththeprobabilityofaninsuredeventandthemagnitudeofitspotential effect.Long-terminsurancecontractsincludethosecontractswithandwithoutdiscretionary participationfeatures(‘DPF’).ForinsurancecontractswithDPFs,theguaranteedelement hasnotbeenrecognisedseparately.Changestotheinsurancecontractliabilityare recognised in the consolidated statement of income as an item of expense.

Onceacontracthasbeenclassifiedasaninsurancecontract,itremainsaninsurance contractfortheremainderofitslifetime,eveniftheinsuranceriskreducessignificantly during this period.

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2. SIGNIFICANT ACCOUNTING POLICIES (continued) xxvii.

Insurance contract liabilities

Investment contracts

Anyinsurancecontractsnotconsideredtobetransferringsignificantrisksare,underIFRS, classifiedasinvestmentcontracts.Depositscollectedandbenefitpaymentsunder investmentcontractsarenotaccountedforthroughtheconsolidatedstatementofincome, butareaccountedfordirectlythroughtheconsolidatedstatementoffinancialpositionasa movementintheinvestmentcontractliability.Changesinthefairvalueoffinancialassets backinginvestmentcontractsarerecognisedintheconsolidatedstatementofincomeas investment income.

Life insurance contract liabilities

Theprovisionforlifeinsurancecontractsiscalculatedonthebasisofacashflowmatching methodwheretheexpectedcashflowsarebasedonprudentassumptionsdependingonthe circumstances prevailing.

Theliabilityisdeterminedasthesumofthediscountedvalueoftheexpectedbenefit paymentsandthefutureadministrationexpensesthataredirectlyrelatedtothecontract,less theexpecteddiscountedvalueoftheactualgrosspremiumsthatwouldbepaidoverthe expectedfuturelifetimeofthecontract.Theliabilityisbasedonbestestimateassumptions astomortality,persistency,investmentincomeandmaintenanceexpensesthatareexpected to prevail over the life time of the contract.

Amarginforadversedevelopmentsisaddedtoeachbestestimateassumptiontoprovidea prudentestimateofpossiblefutureclaims.Adjustmentstotheliabilitiesateachreporting date are recorded in the consolidated statement of income as an expense.

General insurance contract liabilities

Generalinsurancecontractliabilitiesarebasedontheestimatedultimatecostofallclaims incurredbutnotsettledatthereportingdate,whetherreportedornot.Significantdelayscan beexperiencedinthenotificationandsettlementofcertaintypesofgeneralinsurance claims,particularlyinrespectofliabilitybusiness,thereforetheultimatecostcannotbe known with certainty at the reporting date.

Provision for unearned premiums

Theproportionofwrittenpremiumsattributabletosubsequentperiodsisdeferredas unearnedpremium.Thechangeintheprovisionforunearnedpremiumistakentothe consolidatedstatementofincomeintheorderthatrevenueisrecognisedovertheperiodof risk.

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2. SIGNIFICANT ACCOUNTING POLICIES (continued)

xxvii.

Insurance contract liabilities (continued)

Provision for unexpired risk

Provisionforunexpiredriskiscomputedasapercentageoftheprovisionforunearned premiumsattheendoftheyear.Ateachreportingdate,liabilityadequacytestsare performedtoensuretheadequacyoftheinsuranceliabilities.Anydeficiencyischargedto theconsolidatedstatementofincomebysubsequentlyestablishingaprovisionforlosses arising from the liability adequacy tests (the unexpired risk provision).

Liability adequacy test

InaccordancewithIFRS4,reservingforliabilitiesexistingasatthereportingdatefrom propertyandcasualtylinesofbusinesshasbeentestedforadequacybyindependent actuarial consultants using the Bornhuetter-Fergusson model.

The Bornhuetter-Fergusson model can be summarised as follows:

• • • xxviii.

Thevaluationmethodmakesanindependentestimateofthegrossultimateclaimstoa correspondingpremiumforeachunderwritingyearbasedonexpectationsofclaims arising from the gross premiums written in that year.

Itestimatesaclaimrun-offpatternofhowclaimsemergeyearbyyearuntilallis known about the total ultimate claim.

Fromtheindependentestimateofgrossultimateclaims,theportionthatrelatestopast periods is removed and the resultant balance is the gross claims yet to emerge.

Theindependentactuariesconcludedintheirreportdated8January2020thatthecarrying amountsoftheinsuranceliabilitiesofthegeneralinsurancesubsidiaryasat31December 2019,inrespectofincurredbutnotreportedclaims(IBNR)fromunexpiredcontractswere adequate.

Trade and other payables

Liabilitiesfortradeandotheramountspayable,whicharenormallysettledon30-90day terms,arecarriedatcost,whichisthefairvalueoftheconsiderationtobepaidinthefuture for goods and services received, whether or not billed to the Group.

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2. SIGNIFICANT ACCOUNTING POLICIES (continued) xxix.

Provisions

ProvisionsarerecognisedwhentheGrouphasapresentobligation(legalorconstructive)as aresultofapastevent,whereitisprobablethatanoutflowofresourcesembodying economicbenefitswillberequiredtosettletheobligationandareliableestimatecanbe madeoftheamountoftheobligation.WhentheGroupexpectssomeorallofaprovisionto bereimbursed,forexample,underaninsurancecontract,thereimbursementisrecognised asaseparateasset,butonlywhenthereimbursementisvirtuallycertain.Theexpense relatingtoaprovisionispresentedintheconsolidatedstatementofincome,netof reimbursements.

WhentheGroupcanreliablymeasuretheoutflowofeconomicbenefitsinrelationtoa specificmatterandconsiderssuchoutflowstobeprobable,theGrouprecordsaprovision againstthematter.Giventhesubjectivityanduncertaintyofdeterminingtheprobabilityof losses,theGrouptakesintoaccountanumberoffactorsincludinglegaladvice,thestageof the matter and historical evidence from similar incidents.

Iftheeffectofthetimevalueofmoneyismaterial,provisionsarediscountedusinga currentpre-taxratethatreflects,whereappropriate,therisksspecifictotheliability.When discountingisused,theincreaseintheprovisionduetothepassageoftimeisrecognisedas a finance cost.

Revenue from contracts with customers

xxx.

Revenuefromcontractswithcustomersisrecognisedwhencontrolofthegoodsorservices istransferredtothecustomeratanamountthatreflectstheconsiderationtowhichthe Groupexpectstobeentitledinexchangeforthosegoodsorservices.TheGrouphas generallyconcludedthatitistheprincipalinitsrevenuearrangements,exceptforthe agencyservicesbelow,becauseittypicallycontrolsthegoodsorservicesbefore transferring them to the customer.

Thedisclosuresofsignificantaccountingjudgements,estimatesandassumptionsrelatingto revenue from contracts with customers are provided in Note 3.

Annual Report Financials 2019

ANSA

McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Revenue from contracts with customers (continued)

Sales of products to third parties

Revenuefromthesaleofproductstothirdpartiesisrecognisedatthepointintimewhen controloftheassetistransferredtothecustomer,generallyondeliveryoftheitems.The Groupconsiderswhetherthereareotherpromisesinthecontractthatareseparate performanceobligationstowhichaportionofthetransactionpriceneedstobeallocated (e.g.providingservicing).Indeterminingthetransactionpriceforsales,theGroup considerstheeffectsofvariableconsideration,theexistenceofsignificantfinancing components, non-cash consideration, and consideration payable to the customer (if any).

• Rights of return

Variable consideration

Iftheconsiderationinacontractincludesavariableamount,theGroupestimatesthe amountofconsiderationtowhichitwillbeentitledinexchangefortransferringthe goodstothecustomer.Thevariableconsiderationisestimatedatcontractinceptionand constraineduntilitishighlyprobablethatasignificantrevenuereversalintheamount ofcumulativerevenuerecognisedwillnotoccurwhentheassociateduncertaintywith thevariableconsiderationissubsequentlyresolved.Somecontractsprovidecustomers witharightofreturnandvolumerebates.Therightsofreturnandvolumerebatesgive rise to variable consideration.

Certaincontractsprovideacustomerwitharighttoreturnthegoodswithinaspecified period.TheGroupusestheexpectedvaluemethodtoestimatethegoodsthatwillnot bereturnedbecausethismethodbestpredictstheamountofvariableconsiderationto whichtheGroupwillbeentitled.TherequirementsinIFRS15onconstraining estimatesofvariableconsiderationarealsoappliedinordertodeterminetheamountof variableconsiderationthatcanbeincludedinthetransactionprice.Forgoodsthatare expectedtobereturned,insteadofrevenue,theGrouprecognisesarefundliability.A rightofreturnasset(andcorrespondingadjustmenttocostofsales)isalsorecognised for the right to recover products from a customer.

ANSA

McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Revenue from contracts with customers (continued)

Sale of products to third parties (continued)

• Volume rebates

Variable consideration (continued)

TheGroupprovidesretrospectivevolumerebatestocertaincustomersoncethe quantityofproductspurchasedduringtheperiodexceedsathresholdspecifiedinthe contract.Rebatesareoffsetagainstamountspayablebythecustomer.Toestimatethe variableconsiderationfortheexpectedfuturerebates,theGroupappliesthemostlikely amountmethodforcontractswithasingle-volumethresholdandtheexpectedvalue methodforcontractswithmorethanonevolumethreshold.Theselectedmethodthat bestpredictstheamountofvariableconsiderationisprimarilydrivenbythenumberof volumethresholdscontainedinthecontract.TheGroupthenappliestherequirements onconstrainingestimatesofvariableconsiderationandrecognisesarefundliabilityfor the expected future rebates.

Warranty obligations

SomecompaniesintheGroupprovidewarrantiesforgeneralrepairsofdefectsthatexisted atthetimeofsale.Theseassurance-typewarrantiesareaccountedforunderIAS37 Provisions, Contingent Liabilities and Contingent Assets.

AcompanyintheGroupprovidesawarrantybeyondfixingdefectsthatexistedatthetime ofsale.Thisservice-typewarrantyissoldbundledtogetherwiththesaleoftherelated items.Contractsforbundledsalesofgoodsorservicesandaservice-typewarranty comprisetwoormoreperformanceobligationsbecausethepromisestotransfertheother goodsorservicesandtoprovidetheservice-typewarrantyarecapableofbeingdistinct. Usingtherelativestand-alonesellingpricemethod,aportionofthetransactionpriceis allocatedtotheservice-typewarrantyandrecognisedasacontractliability.Revenueis recognisedovertheperiodinwhichtheservice-typewarrantyisprovidedbasedonthetime elapsed.

Annual Report Financials 2019

ANSA

McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Loyalty points programme

AcompanyintheGroupbegantooperatealoyaltypointsprogrammeduringtheyear. UnderIFRS15,theloyaltypointsgiverisetoaseparateperformanceobligationbecause theyprovideamaterialrighttothecustomerandaportionofthetransactionpricewas allocated to the loyalty points awarded to customers.

Rendering of services

TheGroupprovidesservicesthatareeithersoldseparatelyorbundledwiththesaleof goodsand/orotherservices.Bundledsalesmaycomprisetwoormoreperformance obligationswheretheitemsbeingsoldarecapableofbeingdistinctandseparately identifiable.Accordingly,theGroupallocatesthetransactionpricebasedontherelative stand-alone selling prices.

TheGrouprecognisesrevenuefromcertainservicesovertime,usinganinputmethodto measureprogresstowardscompletesatisfactionoftheservicewherethecustomer simultaneously receives and consumes the benefits provided by the Group.

Group as principal and agent

Whenanotherpartyisinvolvedinprovidinggoodsorservicestoitscustomer,theGroup determineswhetheritisaprincipaloranagentinthesetransactionsbyevaluatingthe natureofitspromisetothecustomer.TheGroupisaprincipalandrecordsrevenueona grossbasisifitcontrolsthepromisedgoodsorservicesbeforetransferringthemtothe customer.However,iftheGroup’sroleisonlytoarrangeforanotherentitytoprovidethe goodsorservices,thentheGroupisanagentandwillneedtorecordrevenueatthenet amount that it retains for its agency services.

TheGrouphascontractswithcustomerstoacquire,ontheirbehalf,shipping,procurement andtravelservicesprovidedbyshippingcompanies,airlinesandothersuppliers.TheGroup is acting as an agent in these arrangements.

Revenue from contracts with customers (continued)

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued) xxx.

Revenue

from contracts with customers (continued)

Contract balances

Contract assets

Acontractassetistherighttoconsiderationinexchangeforgoodsorservicestransferredto thecustomer.IftheGroupperformsbytransferringgoodsorservicestoacustomerbefore thecustomerpaysconsiderationorbeforepaymentisdue,acontractassetisrecognisedfor the earned consideration that is conditional.

Trade receivables

AreceivablerepresentstheGroup’srighttoanamountofconsiderationthatis unconditional(i.e.,onlythepassageoftimeisrequiredbeforepaymentoftheconsideration isdue).RefertoaccountingpoliciesoffinancialassetsinNote2(xv)Financialinstruments – initial recognition and subsequent measurement.

Contract liabilities

Acontractliabilityistheobligationtotransfergoodsorservicestoacustomerforwhichthe Grouphasreceivedconsideration(oranamountofconsiderationisdue)fromthecustomer. IfacustomerpaysconsiderationbeforetheGrouptransfersgoodsorservicestothe customer,acontractliabilityisrecognisedwhenthepaymentismadeorthepaymentisdue (whicheverisearlier).ContractliabilitiesarerecognisedasrevenuewhentheGroup performs under the contract.

Assets and liabilities arising from rights to return

Right of return assets

RightofreturnassetrepresentstheGroup’srighttorecoverthegoodsexpectedtobe returnedbycustomers.Theassetismeasuredattheformercarryingamountofthe inventory,lessanyexpectedcoststorecoverthegoods,includinganypotentialdecreasesin thevalueofthereturnedgoods.TheGroupupdatesthemeasurementoftheassetrecorded foranyrevisionstoitsexpectedlevelofreturns,aswellasanyadditionaldecreasesinthe value of the returned products.

Refund liabilities

Arefundliabilityistheobligationtorefundsomeoralloftheconsiderationreceived(or receivable)fromthecustomerandismeasuredattheamounttheGroupultimatelyexpects itwillhavetoreturntothecustomer.TheGroupupdatesitsestimatesofrefundliabilities (andthecorrespondingchangeinthetransactionprice)attheendofeachreportingperiod. Refer to above accounting policy on variable consideration.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued) xxxi.

Recognition of interest income

The effective interest rate method

Interestincomeisrecordedusingtheeffectiveinterestrate(EIR)methodforallfinancial instrumentsmeasuredatamortisedcostandfinancialassetsmeasuredatFVOCI.TheEIRis theratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthe financialinstrumentor,whenappropriate,ashorterperiod,tothenetcarryingamountofthe financial asset.

TheEIR(andtherefore,theamortisedcostoftheasset)iscalculatedbytakingintoaccount anydiscountorpremiumonacquisition,feesandcoststhatareanintegralpartoftheEIR. TheGrouprecognisesinterestincomeusingarateofreturnthatrepresentsthebestestimate ofaconstantrateofreturnovertheexpectedlifeoftheloan.Hence,itrecognisestheeffect ofpotentiallydifferentinterestrateschargedatvariousstages,andothercharacteristicsof the product life cycle (including prepayments, penalty interest and charges).

Interestincomeisaccrueduntiltheinvestmentcontractuallybecomesthreemonthsin arrears,atwhichtime,theinterestissuspendedandthenaccountedforonacashbasisuntil the investment is brought up to date.

Interest and similar income

TheGroupcalculatesinterestincomebyapplyingtheEIRtothegrosscarryingamountof financial assets other than credit-impaired assets.

Whenafinancialassetbecomescredit-impairedandis,therefore,regardedas‘Stage3’,the Groupcalculatesinterestincomebyapplyingtheeffectiveinterestratetothenetamortised costofthefinancialasset.Ifthefinancialassetscures(asoutlinedinNote32)andisno longer credit-impaired, the Group reverts to calculating interest income on a gross basis.

Forpurchasedororiginatedcredit-impaired(POCI)financialassets(assetoutinNote2 xvi),theGroupcalculatesinterestincomebycalculatingthecredit-adjustedEIRand applyingthatratetotheamortisedcostoftheasset.Thecredit-adjustedEIRistheinterest ratethat,atoriginalrecognition,discountstheestimatedfuturecashflows(includingcredit losses) to the amortised cost of the POCI assets.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

xxxi.

Recognition of interest income (continued)

Interest and similar income (continued)

Incomefromloans,includingoriginationfees,isrecognisedonanongoingbasis.Interestis accountedforontheaccrualsbasisexceptwherealoancontractuallybecomesthreemonths inarrears,atwhichpoint,theaccruedinterestissuspendedandsubsequentlyaccountedfor on a cash basis until the arrears are cleared.

Interestincomeonalltradingassetsandfinancialassetsmandatorilyrequiredtobe measuredatFVPLisrecognisedusingthecontractualinterestrateinnettradingincomeand Net gains/(losses) on financial assets at fair value through profit or loss, respectively.

xxxii.

Other revenue

Premium income

Premiumsfromlifeinsurancecontractsarerecognisedasrevenuewhenpayablebythe policyholders.Forsinglepremiumbusinessthisisthedatefromwhichthepolicyis effective.Fornon-lifebusiness,premiumswrittenarerecognisedonpolicyinceptionand earned on a pro-rated basis over the term of the related policy coverage.

Premiumswrittenongeneralinsurancepoliciesarerecognisedonpolicyinceptionand earnedonapro-ratabasisoverthetermoftherelatedpolicycoverage.Forsinglepremium business this is the date from which the policy is effective.

Reinsurance premiums

Reinsurancepremiumsarerecognisedwhentherighttoreceivethegrosspremiumis recognised in accordance with the relevant reinsurance contract.

Fees and commissions

UnlessincludedintheEIRcalculation,feesarerecognisedonanaccrualbasisasthe serviceisprovided.Feesandcommissionsnotintegraltotheeffectiveinterestarisingfrom negotiatingorparticipatinginthenegotiationofatransactionfromathirdpartyare recognisedoncompletionoftheunderlyingtransaction.Portfolioandothermanagement advisory and service fees are recognised based on the applicable service contract.

Rental income

Rentalincomearisingoninvestmentpropertiesunderoperatingleaseisrecognisedinthe consolidated statement of income on a straight-line basis over the lease term.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued) xxxii.

Other revenue (continued)

Dividend income

DividendincomeisrecognisedwhentheGroup’srighttoreceivethepaymentis established.

Benefits and claims

Life insurance

Lifeinsurancebusinessclaimsreflectthecostofallclaimsincurredduringtheyear.Death claimsandsurrendersarerecordedonthebasisofnotificationsreceived.Maturitiesand annuity payments are recorded when due.

General insurance

Reportedoutstandinggeneralinsuranceclaimscomprisetheestimatedcostsofallclaims incurredbutnotsettledattheendofthereportingperiod,lessanyreinsurancerecoveries.In estimatingtheliabilityforthecostofreportedclaimsnotyetpaid,theGroupconsidersany informationavailablefromadjustersandinformationonthecostofsettlingclaimswith similarcharacteristicsinpreviousperiods.Provisionismadeforclaimsincurredbutnot reported(IBNR)untilaftertheendofthereportingperiod.Differencesbetweenthe provisionsforoutstandingclaimsandsubsequentrevisionsandsettlementareincludedin the consolidated statement of income in the year the claims are settled.

Reinsurance claims

Reinsuranceclaimsarerecognisedwhentherelatedgrossinsuranceclaimisrecognised according to the terms of the relevant reinsurance contract.

Lapses – life insurance

Life Insurance Policies will lapse and the Group’s liability will cease:

Attheendofthegraceperiod(30days)foranyunpaidpremiumunlessthepremiumor partofitisadvancedundertheautomaticpremiumloanprovisionorthepolicyis changed to paid up; or

ii.

iii.

Attheendofthepro-ratedperiodforwhichinsuranceisprovidedifpartofanunpaid premium was advanced under the automatic loan provision; or

Attheendofthe30dayperiodfollowingthemailingofalapsenoticeindicatingthat the indebtedness equals or exceeds the gross cash value.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES

Deposit insurance contribution

(continued) xxxv. xxxvi.

TheCentralBankandtheFinancialInstitutions(Non-Banking)(Amendment)Act,ofthe relevantjurisdictionsofthesubsidiarieswhicharefinancialinstitutions,haveestablisheda DepositInsuranceFundfortheprotectionofdepositors.Anannualpremiumof0.05%to 0.2%isleviedontheaveragedepositliabilityoutstandingattheendofeachquarterofthe preceding year.

Repurchase and reverse repurchase agreements

Securitiessoldsubjecttoalinkedrepurchaseagreement(‘repo’)areretainedinthe consolidatedfinancialstatementsastradingsecuritiesandthecounterpartyliabilityis includedincustomers'depositsandotherfundinginstruments,loansandadvances. Securitiespurchasedunderanagreementtoresell(‘reverserepo’)arerecordedasloansand advances.Thedifferencebetweenthesaleandrepurchasepriceistreatedasinterestand accrued over the life of the repo agreement using the effective yield.

xxxvii.

Statutory deposits with Central Bank

PursuanttotheprovisionsoftheCentralBankAct1964andtheFinancialInstitutionsAct 2008,afinancialservicessubsidiarywithintheGroupisrequiredtomaintainwiththe CentralBankofTrinidadandTobagostatutorybalancesinrelationtodepositliabilitiesand certainfundinginstrumentsoftheinstitutions.Additionally,afinancialservicessubsidiary inBarbadosisalsorequiredtomaintainwiththeCentralBankofBarbados,statutory depositbalancesinrelationtodepositliabilities.Thesefundsarenotavailabletofinance the subsidiary's day-to-day operations.

xxxviii.

Earnings per share

Earningspershare(EPS)havebeencalculatedbydividingtheprofitfortheyear attributabletoshareholdersovertheweightedaveragenumberofordinarysharesinissue duringtheyearnetoftreasuryshares.DilutedEPSiscomputedbyadjustingtheweighted averagenumberofordinarysharesinissue(netoftreasuryshares)fortheassumed conversion of potential dilutive ordinary shares.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (continued) xxxix.

Segment

information

Formanagementpurposes,theGroupisorganisedintobusinessunitsbasedonitsproducts and services and has four (4) reportable segments as follows:

The manufacturing, packaging and brewing segment;

The automotive, trading and distribution segment;

The insurance and financial services segment; and

The media, retail, services and parent company segment.

Comparative information

Changesinpresentationweremadetothecomparativeinformationofthepreviousyear (2018)intheseconsolidatedfinancialstatementstoallowconsistentpresentationwiththe current year.

3. · ·

SIGNIFICANT ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS

ThepreparationoftheGroup’sconsolidatedfinancialstatementsrequiresmanagementtomake judgments,estimatesandassumptionsthataffectthereportedamountsofrevenues,expenses,assets, liabilities,theaccompanyingdisclosuresandthedisclosureofcontingentliabilities.Uncertainty abouttheseassumptionsandestimatescouldresultinoutcomesthatrequireamaterialadjustmentto the carrying amount of assets or liabilities affected in future periods.

Judgments

IntheprocessofapplyingtheGroup’saccountingpolicies,managementhasmadethefollowing judgments,whichhavethemostsignificanteffectontheamountsrecognisedintheconsolidated financial statements:

Impairment of financial instruments

ThemeasurementofimpairmentlossesunderIFRS9acrossallcategoriesoffinancialinstruments requiresjudgement,inparticular,theestimationoftheamountandtimingoffuturecashflowsand collateralvalueswhendeterminingimpairmentlossesandtheassessmentofasignificantincreasein creditrisk.Theseestimatesaredrivenbyanumberoffactors,changesinwhichcanresultin different levels of allowances.

TheGroup'sECLcalculationsareoutputsofcomplexmodelswithanumberofunderlying assumptionsregardingthechoiceofvariableinputsandtheirinterdependencies.Elementsofthe ECL models that are considered accounting judgements and estimates include:

The Group’s internal credit grading model, which assigns PDs to the individual grades; TheGroup’scriteriaforassessingiftherehasbeenasignificantincreaseincreditriskandif so,allowancesforfinancialinstrumentsshouldbemeasuredonaLTECLbasisandthe qualitative assessment;

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

3. •

SIGNIFICANTACCOUNTINGESTIMATES,ASSUMPTIONSANDJUDGEMENTS

(continued)

Judgments (continued)

ThesegmentationoffinancialinstrumentswhentheirECLisassessedonacollective basis;

Development of ECL models, including the various formulas and the choice of inputs; Determinationofassociationsbetweenmacroeconomicscenariosandeconomicinputs, suchasunemploymentlevelsandcollateralvalues,andtheeffectonPDs,EADsand LGDs; and Selectionofforward-lookingmacroeconomicscenariosandtheirprobabilityweightings, to derive the economic inputs into the ECL models.

Provision for impairment of trade receivables

Managementexercisesjudgementindeterminingtheadequacyofprovisionsfortradeaccounts receivablebalancesforwhichcollectionsareconsidereddoubtful.Judgementisusedinthe assessmentoftheextentoftherecoverabilityoflongoutstandingbalances.Actualoutcomesmay bemateriallydifferentfromtheprovisionestablishedbymanagement.Theaccountingpolicies related to impairment of trade receivables is disclosed in Note 2 (viii).

Property, plant and equipment

Managementexercisesjudgementindeterminingwhethercostsincurredcanaccruesufficient future economic benefits to the Group to enable the value to be treated as a capital expense. Further judgementisuseduponannualreviewoftheresidualvaluesandusefullivesofallcapitalitemsto determineanynecessaryadjustmentstocarryingvalue.Theaccountingpolicyrelatedtoproperty, plant and equipment is disclosed in Note 2 (xiii).

Revenue from contracts with customers

TheGroupappliedthefollowingjudgementsthatsignificantlyaffectthedeterminationofthe amount and timing of revenue from contracts with customers:

•

Identifyingperformanceobligationsinabundledsaleofequipmentandinstallation services

TheGroupprovidesinstallationservicesthatareeithersoldseparatelyorbundledtogether withthesaleofitemstoacustomer.Theinstallationservicesareapromisetotransfer servicesinthefutureandarepartofthenegotiatedexchangebetweentheGroupandthe customer.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

3.

SIGNIFICANTACCOUNTINGESTIMATES,ASSUMPTIONSANDJUDGEMENTS (continued)

Judgments (continued)

Revenue from contracts with customers (continued)

TheGroupappliedthefollowingjudgementsthatsignificantlyaffectthedeterminationofthe amount and timing of revenue from contracts with customers: (continued)

•

• Identifyingperformanceobligationsinabundledsaleofequipmentandinstallation services (continued)

TheGroupdeterminedthatboththeitemsandinstallationarecapableofbeingdistinct.The factthattheGroupregularlysellsbothequipmentandinstallationonastand-alonebasis indicatesthatthecustomercanbenefitfrombothproductsontheirown.TheGroupalso determinedthatthepromisestotransfertheitemsandtoprovideinstallationaredistinct withinthecontextofthecontract.Theequipmentandinstallationarenotinputstoa combinediteminthecontract.TheGroupisnotprovidingasignificantintegrationservice becausethepresenceoftheequipmentandinstallationtogetherinthiscontractdonotresult inanyadditionalorcombinedfunctionalityandneithertheequipmentnortheinstallation significantlymodifyorcustomisetheother.Inaddition,theequipmentandinstallationare nothighlyinterdependentorhighlyinterrelated,becausetheGroupwouldbeableto transfertheequipmentevenifthecustomerdeclinedinstallationandwouldbeableto provideinstallationinrelationtoproductssoldbyotherdistributors.Consequently,the Groupallocatedaportionofthetransactionpricetotheequipmentandtheinstallation services based on relative stand-alone selling prices.

Determining the timing of satisfaction of installation services

TheGroupconcludedthatrevenueforsomeinstallationservicesistoberecognisedover timebecausethecustomersimultaneouslyreceivesandconsumesthebenefitsprovidedby theGroup.Thefactthatanotherentitywouldnotneedtore-performtheinstallationthatthe Grouphasprovidedtodatedemonstratesthatthecustomersimultaneouslyreceivesand consumes the benefits of the Group’s performance as it performs.

ANSA McAL LIMITED AND

ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

3. Revenue from contracts with customers (continued)

SIGNIFICANTACCOUNTINGESTIMATES,ASSUMPTIONSANDJUDGEMENTS (continued)

Judgments (continued)

•

Determining the timing of satisfaction of installation services (continued)

TheGroupapplieseithertheinputoroutputmethodofmeasuringprogressofthe installationservicesdependingonhowmanagementmeasuresprogresstowardscompletion forprojectmanagementpurposes.Whereinputmethodsareapplied,theGrouprecognises revenueonthebasisofthecostincurredrelativetothetotalexpectedcosttocompletethe service.Whereoutputmethodsareapplied,theGrouprecognisesrevenuebasedonthe progresstowardscompletingpre-establishedmilestones,giventherevenueallocatedto those milestones, relative to total revenue.

Principal versus agent considerations

TheGroupentersintocontractswithitscustomerstoperformshiphandlingandprocessing dutiesonbehalfofprincipals.ThefollowingfactorsindicatethattheGroupisactinginthe capacity as an agent in these contracts:

TheGroupisnotprimarilyresponsibleforfulfillingthepromisetoprovidethe shipping services.

TheGrouphasnodiscretioninestablishingthepricefortheshippingservices.The Group’sconsiderationinthesecontractsisonlybasedoncommissionsthatareafixed fee or a percentage of the cost of shipping services.

• Inaddition,theGroupconcludedthatittransferscontroloveritsservices(i.e.,arrangingfor theshippingservices),atapointintime,uponcompletionoftheshippingservices,because this is when the customer benefits from the Group’s agency service.

Determining method to estimate variable consideration and assessing the constraint

Certaincontractsforthesaleofgoodsincludearightofreturnandvolumerebatesthatgive risetovariableconsideration.Inestimatingthevariableconsideration,theGroupisrequired touseeithertheexpectedvaluemethodorthemostlikelyamountmethodbasedonwhich method better predicts the amount of consideration to which it will be entitled.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

3.

SIGNIFICANTACCOUNTINGESTIMATES,ASSUMPTIONSANDJUDGEMENTS

(continued)

Judgments (continued)

Revenue from contracts with customers (continued)

•

Determiningmethodtoestimatevariableconsiderationandassessingtheconstraint (continued)

TheGroupdeterminedthattheexpectedvaluemethodistheappropriatemethodtousein estimatingthevariableconsiderationforthesaleofproductswithrightsofreturn,giventhe largenumberofcustomercontractsthathavesimilarcharacteristics.Inestimatingthe variableconsiderationforthesaleofproductswithvolumerebates,theGroupdetermined thatusingacombinationofthemostlikelyamountmethodandexpectedvaluemethodis appropriate.Theselectedmethodthatbetterpredictstheamountofvariableconsideration wasprimarilydrivenbythenumberofvolumethresholdscontainedinthecontract.The mostlikelyamountmethodisusedforthosecontractswithasinglevolumethreshold,while the expected value method is used for contracts with more than one volume threshold.

Beforeincludinganyamountofvariableconsiderationinthetransactionprice,theGroup considerswhethertheamountofvariableconsiderationisconstrained.TheGroup determinedthattheestimatesofvariableconsiderationarenotconstrainedbasedonits historicalexperience,businessforecastandthecurrenteconomicconditions.Inaddition, the uncertainty on the variable consideration will be resolved within a short time frame.

Determining whether the loyalty points provide material rights to customers

TheGroupoperatesaloyaltypointsprogrammewhichallowscustomerstoaccumulatepointswhen theypurchasecertainGroupproducts.Thepointscanberedeemedforadiscount,subjecttoa minimumnumberofpointsobtained.TheGroupassessedwhethertheloyaltypointsprovidea material right to the customer that needs to be accounted for as a separate performance obligation.

TheGroupdeterminedthattheloyaltypointsprovideamaterialrightthatthecustomerwouldnot receivewithoutenteringintothecontract.Thediscountthecustomerwouldreceivebyexercising theloyaltypointsdonotreflectthestand-alonesellingpricethatacustomerwithoutanexisting relationshipwiththeGroupwouldpayforthoseproducts.Thecustomers’rightalsoaccumulatesas they purchase additional products.

ANSA

McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

3. Leases

SIGNIFICANTACCOUNTINGESTIMATES,ASSUMPTIONSANDJUDGEMENTS

(continued)

Judgments (continued)

TheGroupdeterminestheleasetermasthenon-cancellabletermofthelease,togetherwith anyperiodscoveredbyanoptiontoextendtheleaseifitisreasonablycertaintobe exercised,oranyperiodscoveredbyanoptiontoterminatethelease,ifitisreasonably certainnottobeexercised.TheGrouphasseveralleasecontractsthatincludeextensionand terminationoptions.TheGroupappliesjudgementinevaluatingwhetheritisreasonably certainwhetherornottoexercisetheoptiontoreneworterminatethelease.Thatis,it considersallrelevantfactorsthatcreateaneconomicincentiveforittoexerciseeitherthe renewalortermination.Afterthecommencementdate,theGroupreassessestheleaseterm ifthereisasignificanteventorchangeincircumstancesthatiswithinitscontrolandaffects itsabilitytoexerciseornottoexercisetheoptiontorenewortoterminate(e.g., constructionofsignificantleaseholdimprovementsorsignificantcustomisationtothe leased asset).

TheGroupincludedtherenewalperiodaspartoftheleasetermforleasesoflandand buildingsandplantandmachinerywithshorternon-cancellableperiod.TheGrouptypically exercisesitsoptiontorenewfortheseleasesbecausetherewillbeasignificantnegative effectonproductionifareplacementassetisnotreadilyavailable.Therenewalperiodsfor leasesoflandandbuildingsandplantandmachinerywithlongernon-cancellableperiods arenotincludedaspartoftheleasetermasthesearenotreasonablycertaintobeexercised. Furthermore,theperiodscoveredbyterminationoptionsareincludedaspartofthelease term only when they are reasonably certain not to be exercised.

-Determiningtheleasetermofcontractswithrenewalandterminationoptions–Groupas lessee

Estimating the incremental borrowing rate

IftheGroupcannotreadilydeterminetheinterestrateimplicitinthelease,itusesits incrementalborrowingrate(IBR)tomeasureleaseliabilities.TheIBRistherateofinterest thattheGroupwouldhavetopaytoborrowoverasimilarterm,andwithasimilarsecurity, thefundsnecessarytoobtainanassetofasimilarvaluetotheright-of-useassetinasimilar economicenvironment.TheIBRthereforereflectswhattheGroup‘wouldhavetopay', whichrequiresestimationwhennoobservableratesareavailable(suchasforsubsidiaries thatdonotenterintofinancingtransactions)orwhentheyneedtobeadjustedtoreflectthe termsandconditionsofthelease(forexample,whenleasesarenotinthesubsidiary’s functional currency).

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

3. Leases (continued)

SIGNIFICANT ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS (continued)

Judgments (continued)

Estimating the incremental borrowing rate (continued)

TheGroupestimatestheIBRusingobservableinputs(suchasmarketinterestrates)when availableandisrequiredtomakecertainentity-specificestimates(suchasthesubsidiary’s stand-alone credit rating).

Operating lease commitments – Group as lessor

TheGrouphasenteredintovehicle,equipmentandpropertyleases.TheGrouphas determined,basedonanevaluationofthetermsandconditionsofthearrangements,suchas theleasetermnotconstitutingasubstantialportionoftheeconomiclifeofthecommercial assets,thatitretainsallthesignificantrisksandrewardsofownershipoftheseassetsand accounts for the contracts as operating leases.

Finance lease commitments – Group as lessor

Leasesareclassifiedasfinanceleaseswhenthetermsoftheleasetransfersubstantiallyall oftherisksandrewardsofownershiptothelessee.Allotherleasesareclassifiedas operating leases.

Estimates and assumptions

Thekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertainty atthereportingdate,thathaveasignificantriskofcausingamaterialadjustmenttothe carrying amounts of assets and liabilities within the next financial year, are described below. TheGroupbaseditsassumptionsandestimatesonparametersavailablewhenthe consolidatedfinancialstatementswereprepared.Existingcircumstancesandassumptions aboutfuturedevelopments,however,maychangeduetomarketchangesorcircumstances arisingbeyondthecontroloftheGroup.Suchchangesarereflectedintheassumptions when they occur.

Impairment of goodwill and other intangibles

TheGroupdetermineswhethergoodwillorotherindefinitelifeintangiblesareimpairedat leastonanannualbasis.Thisrequiresanestimationofthe‘valueinuse’or‘fairvalueless costsofdisposal’ofthecash-generatingunitstowhichthegoodwillorotherintangiblesare allocated.Estimatingavalueinuseamountrequiresmanagementtomakeanestimateofthe expectedfuturecashflowsfromthecash-generatingunitsandalsotochooseasuitable discountrateinordertocalculatethepresentvalueofthosecashflows.Furtherdetailsare provided in Note 6 and accounting policy Note 2 (ix).

ANSA

McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

3.

SIGNIFICANT ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS

(continued)

Estimates and assumptions (continued)

Valuation of investments

Fairvaluesarebasedonquotedmarketpricesforthespecificinstrument,comparisonswithother similarfinancialinstruments,ortheuseofvaluationmodels.Establishingvaluationswherethereare noquotedmarketpricesinherentlyinvolvestheuseofestimatesandapplyingjudgmentin establishingreservesagainstindicatedvaluationsforagedpositions,deterioratingeconomic conditions(includingcountryspecificrisks),concentrationsinspecificindustries,typesof instrumentsorcurrencies,marketliquidity,modelriskitselfandotherfactors.Furtherdetailsare provided in Note 31 and accounting policy Note 2 (xvii).

Taxes

Uncertaintiesexistwithrespecttotheinterpretationofcomplextaxregulationsandtheamountand timingoffuturetaxableincome.Giventheexistenceofinternationalbusinessrelationshipsandthe long-termnatureandcomplexityofexistingcontractualagreements,differencesarisingbetweenthe actualresultsandtheassumptionsmade,orfuturechangestosuchassumptions,couldnecessitate futureadjustmentstotaxincomeandexpensealreadyrecorded.TheGroupestablishesprovisions, basedonreasonableestimates,forpossibleconsequencesofauditsbythetaxauthoritiesofthe respectivecountriesinwhichitoperates.Theamountofsuchprovisionsisbasedonvariousfactors, suchasexperienceofprevioustaxauditsanddifferinginterpretationsoftaxregulationsbythe taxableentityandtheresponsibletaxauthority.Suchdifferencesofinterpretationmayariseona widevarietyofissuesdependingontheconditionsprevailingintherespectiveGroupcompany’s domicile.

Deferredtaxassetsarerecognisedforallunusedtaxlossestotheextentthatitisprobablethat taxableprofitwillbeavailableagainstwhichthelossescanbeutilised.Significantmanagement judgmentisrequiredtodeterminetheamountofdeferredtaxassetsthatcanberecognised,based uponthetimingandtheleveloffuturetaxableprofitstogetherwithfuturetaxplanningstrategies. Further details are provided in accounting policy Note 2 (xxi).

Pension and other post-employment benefits

Thecostofdefinedbenefitpensionplansandotherpost-employmentmedicalbenefitsisdetermined usingactuarialvaluations.Theactuarialvaluationinvolvesmakingassumptionsaboutdiscount rates,expectedratesofreturnonassets,futuresalaryincreases,mortalityratesandfuturepension increases.Duetothelongtermnatureoftheseplans,suchestimatesaresubjecttosignificant uncertainty.Allassumptionsarereviewedateachreportingdate.Furtherdetailsareprovidedin Note 12 and accounting policy Note 2 (xxii).

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

3.

SIGNIFICANT ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS

(continued)

Estimates and assumptions (continued)

Insurance contract liabilities

Theestimationoftheultimateliabilityarisingfromclaimsmadeunderlifeandgeneralinsurance contractsisanaccountingestimate.Thereareseveralsourcesofuncertaintythatneedtobe considered in the estimation of the liability that the Group ultimately pays for those claims.

Forthelifeinsurancecontracts,estimatesaremadeastotheexpectednumberofdeathsforeachof theyearsinwhichtheGroupisexposedtorisk.TheGroupbasedtheseestimatesonstandard industrymortalitytablesthatreflecthistoricalmortalityexperience,adjustedwhereappropriateto reflecttheGroup’suniqueriskexposure.Thenumberofdeathsdeterminesthevalueofpossible futurebenefitstobepaidoutwhichwillbefactoredintoensuringsufficientcoverreserves,whichin returnismonitoredagainstcurrentandfuturepremiums.Forthosecontractsthatinsureriskto longevity,prudentallowanceismadeforexpectedfuturemortalityimprovements,bothepidemic,as wellaswiderangingchangestolifestyle,couldresultinsignificantchangestotheexpectedfuture mortality exposure. All of this results in even more uncertainty in estimating the ultimate liability.

Estimatesarealsomadeastofutureinvestmentincomearisingfromtheassetsbackinglife insurancecontracts.Theseestimatesarebasedoncurrentmarketreturnsaswellasexpectations about future economic and financial developments.

Estimatesforfuturedeaths,voluntaryterminations,investmentreturnsandadministrationexpenses aredeterminedattheinceptionofthecontractandareusedtocalculatetheliabilityoverthetermof thecontract.Attheendofeachreportingperiod,theseestimatesarereassessedforadequacyand changes will be reflected in adjustments to the liability.

Forgeneralinsurancecontracts,estimateshavetobemadebothfortheexpectedultimatecostof claimsreportedatthereportingdateandfortheexpectedultimatecostofclaimsincurredbutnotyet reported(IBNR)atthereportingdate.Itcantakeasignificantperiodoftimebeforetheultimate claimscostscanbeestablishedwithcertainty.Theprimarytechniqueadoptedbymanagementin estimatingthecostofnotifiedandIBNRclaimsisthatofusingpastclaimsettlementtrendsto predictfutureclaimssettlementestimates.Ateachreportingdate,prioryearclaimsestimatesare reassessedforadequacyandchangesaremadetotheprovision.Generalinsuranceclaimsprovisions arenotdiscountedforthetimevalueofmoney.FurtherdetailsareprovidedinNote19and accounting policy Note 2 (xxvii).

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

3.

SIGNIFICANT ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS

(continued)

Estimates and assumptions (continued)

Estimating variable consideration for returns and volume rebates

TheGroupestimatesvariableconsiderationstobeincludedinthetransactionpriceforthesaleof electronics equipment with rights of return and volume rebates.

TheGroupdevelopedastatisticalmodelforforecastingsalesreturns.Themodelusedthehistorical returndataofeachproducttocomeupwithexpectedreturnpercentages.Thesepercentagesare appliedtodeterminetheexpectedvalueofthevariableconsideration.Anysignificantchangesin experienceascomparedtohistoricalreturnpatternwillimpacttheexpectedreturnpercentages estimated by the Group.

TheGroup’sexpectedvolumerebatesareanalysedonapercustomerbasisforcontractsthatare subjecttoasinglevolumethreshold.Determiningwhetheracustomerwillbelikelyentitledto rebatewilldependonthecustomer’shistoricalrebatesentitlementandaccumulatedpurchasesto date.

TheGroupappliedastatisticalmodelforestimatingexpectedvolumerebatesforcontractswith morethanonevolumethreshold.Themodelusesthehistoricalpurchasingpatternsandrebates entitlementofcustomerstodeterminetheexpectedrebatepercentagesandtheexpectedvalueofthe variableconsideration.Anysignificantchangesinexperienceascomparedtohistoricalpurchasing patternsandrebateentitlementsofcustomerswillimpacttheexpectedrebatepercentagesestimated by the Group.

TheGroupupdatesitsassessmentofexpectedreturnsandvolumerebatesquarterlyandtherefund liabilitiesareadjustedaccordingly.Estimatesofexpectedreturnsandvolumerebatesaresensitiveto changesincircumstancesandtheGroup’spastexperienceregardingreturnsandrebateentitlements maynotberepresentativeofcustomers’actualreturnsandrebateentitlementsinthefuture.Asat31 December2019,theamountrecognisedasrefundliabilitiesfortheexpectedreturnsandvolume rebates was $3.5 million (31 December 2018: $2.4 million).

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

4. PROPERTY, PLANT AND EQUIPMENT

Other assets include furniture and fittings, motor vehicles, computer equipment and other tangible fixed assets.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

4. PROPERTY, PLANT AND EQUIPMENT (continued)

Other assets include furniture and fittings, motor vehicles, computer equipment and other tangible fixed assets.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

5.

INVESTMENT PROPERTIES

Balance 1 January

Transfers to property, plant and equipment (net) Additions

Foreign exchange differences and other movements

Depreciation for the year

Balance 31 December

Investment properties at cost

TheGrouphasnorestrictionsontherealisabilityofitsinvestmentpropertiesandnocontractualobligations atyearendtopurchase,constructordevelopinvestmentpropertiesorforrepairs,maintenanceand enhancements.

ThepropertyrentalincomeearnedbytheGroupfromthirdpartiesduringtheyearfromitsinvestment properties,amountedto$23,542(2018:$20,228).Directoperatingexpensesarisingontheinvestment properties amounted to $10,897 (2018: $6,818).

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

6.

INTANGIBLE ASSETS

Gross carrying amounts, 1 January 2019

Additions

Foreign exchange differences

Gross carrying amounts, 31 December 2019

Accumulated impairment and amortisation, 1 January 2019

Amortisation

Accumulated impairment and amortisation, 31 December 2019

Net carrying amounts, 31 December 2019

Gross carrying amounts, 1 January 2018

Foreign exchange translation differences

Additions

Gross carrying amounts, 31 December 2018

Accumulated impairment and amortisation, 1 January 2018

Amortisation

Disposals and other

Accumulated impairment and amortisation, 31 December 2018

Net carrying amounts, 31 December 2018

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued) 6.

INTANGIBLE ASSETS (continued)

Goodwill

InaccordancewithIFRS3,‘BusinessCombinations’,goodwillacquiredthroughbusinesscombinations hasbeenallocatedtotheGroup’scash-generatingunitsthatareexpectedtobenefitfromthesynergiesof thecombination.Impairmentisdeterminedbyassessingtherecoverableamountofthecash-generating unitstowhichgoodwillrelates.Thefollowingtablehighlightsthegoodwillandimpairmenttesting informationforeachcash-generatingunit,aswellastheassumptionstowhichtheimpairmenttesting were most sensitive:

ANSA

McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

INTANGIBLE ASSETS

6. Brands, licenses and contracts

(continued)

Foralloftheaboveimpairmenttests,therecoverableamountoftherelevantbusinessunitswasdetermined basedonvalueinusecalculationsusingpre-taxcashflowprojectionsoverafive-yearterm.These projectionsarebasedonfinancialbudgetsapprovedbytheBoardofDirectorsoftherespectivecompanies. Inassessingvalueinuse,somebudgetswereadjustedtodeliveranadequatebalancebetweenhistoric performanceandlikelyfutureoutcomes.Growthratesarebasedonpublishedindustryresearchwhere available or on the historic average of real gross domestic product (GDP) for the local economy.

Intangibleassetsalsoincludethebrands,licensesandcontractsarisingfromtheacquisitionofSissonsPaints Limited,LewisBergerOverseasHoldingsLimited,IndianRiverBeverageCorporation,theMackesonbrand and various broadcast licenses and rights which were recognised at fair value at the acquisition dates.

Subsequenttoinitialrecognition,brands,licensesandcontractswerecarriedatcostandareexpectedtohave anindefinitelifeduetotheoverallstrengthandlongevityofthebrands.Impairmenttestswereperformedon the indefinite life brands and radio licenses at year end and there were no impairment charges arising.

TheMackesonbrandhasbeengrantedforatermoftwenty-five(25)yearswiththeoptiontorenewatlittle ornocosttotheGroup.PreviousradiolicensesacquiredhavebeenrenewedandhaveallowedtheGroupto determine that this asset has an indefinite useful life.

Goodwill (continued)

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

6.

INTANGIBLE ASSETS

(continued)

Brands, licenses and contracts (continued)

The following table highlights the impairment testing information for each brand, license and contract as well as the assumptions to which the impairment testing were most sensitive:

Brands, licenses and contracts

Manufacturing, packaging & brewing

Manufacturing, packaging & brewing

Manufacturing, packaging & brewing

Media, retail, services & parent company

Manufacturing, packaging & brewing

Intangible assets not subject to impairment

Manufacturing, packaging & brewing

The useful life of the contract manufacturing agreements is 20 years.

Computer software

Intangible assets also include the internal development cost arising from the Enterprise Resource Planning (ERP) Project which was recognised at fair value at the capitalisation date. Subsequent to initial recognition, computer software was carried at cost, less amortisation and impairment losses where necessary, and is expected to have a finite life not exceeding ten (10) years.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

7.LEASES

Group as a lessee

TheGrouphasleasecontractsforvariousitemsofland,buildingandmachineryusedinitsoperations. Leases of land and building generally have lease terms between 2 and 30 years, while plant and machinery generallyhaveleasetermsbetween3and5years.Thereareseveralleasecontractsthatincludeextension and termination options and variable lease payments, which are further discussed below.

TheGroupalsohascertainleasesofequipmentandmachinerywithleasetermsof12monthsorlessand leasesofplantandmachinerywithlowvalue.TheGroupappliesthe‘short-termlease’and‘leaseoflowvalueassets’recognitionexemptionsfortheseleases.TheGrouprecognisedrentexpensefromshort-term leasesof$861andfromlow-valueassetsof$730fortheyearended31December2019.TheGroupalso recognisedrentexpenserelatingtovariableleasepaymentsof$1,583fortheyearended31December 2019.

Setoutbelowarethecarryingamountsofright-of-useassetsrecognisedandthemovementsduringthe year:

Set out below are the carrying amounts of lease liabilities and the movements during the year:

The maturity analysis of lease liabilities are disclosed in Note 32.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

7.LEASES (continued)

TheGrouphasseveralleasecontractsthatincludeextensionandterminationoptions.Theseoptionsare negotiatedbymanagementtoprovideflexibilityinmanagingtheleasedassetportfolioandalignwiththe Group’sbusinessneeds.Managementexercisessignificantjudgementindeterminingwhetherthese extension and termination options are reasonably certain to be exercised.

Setoutbelowaretheundiscountedpotentialfuturerentalpaymentsrelatingtoperiodsfollowingthe exercise date of extension and termination options that are not included in the lease term:

Extension options expected not to be exercised Termination options expected to be exercised

TheGroupisinvolvedinleasesonmotorvehicles,computerequipmentandinvestmentproperties.These non-cancellableleaseshaveremainingtermsofupto6years.Allleasesincludeaclausetoenableupward revision of the rental charge on an annual basis according to prevailing market conditions.

Futureminimumrentalsreceivableundernon-cancellableoperatingleasesasat31Decemberareas follows:

After one year but not more than five years

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

8. INVESTMENT IN ASSOCIATES AND JOINT VENTURE INTERESTS

ThefollowingtableillustratesthesummarisedfinancialinformationoftheGroup’sinvestmentin associates: TheGroup’sinvestmentinassociatesconsistsofa40%ownershipinterestinTrinidadLandsLimitedand variousinterests(23.5%-49.5%)heldbytheANSAMcAL(Barbados)Group.TheGroup’sinterestin associates is accounted for using the equity method in the consolidated financial statements.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

8. INVESTMENT IN ASSOCIATES AND JOINT VENTURE INTERESTS (continued)

Theassociateshadnocontingentliabilitiesorcapitalcommitmentsasat31December2019or2018. Depreciation included in administrative expenses and cost of sales is $11,755 (2018: $17,642).

Joint venture interest

InApril2019,theGroupenteredintoajointventurearrangementwithMPCCaribbeanCleanEnergy Fundfora50%interestinajointventurecompany,CCEFANSARenewableEnergiesHoldingsLimited (CARE),acompanyincorporatedinBarbados.CAREisthe100%ownerofa21MWwindfarm, TilawindS.A.whichislocatedinCostaRica.ThisjointventurerepresentstheGroup'sentryintothe renewable energy power sector.

TheGrouppreviouslyhelda50%interestinjointventurecompanies,CaribbeanRoofTileCompany Limited,acompanyincorporatedintheRepublicofTrinidadandTobagoandUSTilesIncorporated,a companyincorporatedintheUnitedStatesofAmerica.On26June2019,theGroupacquiredan additional50%interestinthevotingsharesofitsjointventureCaribbeanRoofTileCompanyLimited, increasingitsownershipinterestto100%.Asat31December2018,theGroup'sinvestmentinCaribbean RoofTileCompanyLimitedwascarriedatnil.Effective30June2019,theaffairsofUSTiles Incorporatedweredissolvedandwoundupfollowingtheexecutionoftheadditionalsharespurchasedin Caribbean Roof Tile Company Limited by the Group.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued) 8.

INVESTMENT IN ASSOCIATES AND JOINT VENTURE INTERESTS (continued)

Joint venture interests (continued)

TheGroup’sjointventureinterestisaccountedforusingtheequitymethodintheconsolidatedfinancial statements.Summarisedfinancialinformationofthejointventure,basedontheIFRSfinancialstatements, andreconciliationwiththecarryingamountoftheinvestmentintheconsolidatedfinancialstatementsare set out below:

Summarised statement of comprehensive income for the joint venture interest:

comprehensive loss for the year (27,264)

share of loss for the year (13,632)

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

8. 9.INVESTMENT SECURITIES

INVESTMENT IN ASSOCIATES AND JOINT VENTURE INTERESTS (continued)

Joint venture interests (continued)

Nodividendswerereceivedfromjointventureinterestsduring2019or2018.Depreciationincludedin administrativecostsandcostofsalesis$11,576(2018:Nil).Thejointventureentitieshadnocontingent liabilitiesorcapitalcommitmentsasat31December2019and2018andcannotdistributeitsprofitsuntil it obtains the consent from the two venture partners.

Investment securities designated as at fair value through statement of income

Investment securities measured at amortised cost

Investment securities measured at fair value through other comprehensive income

Investments at amortised cost maturing in more than one year

Investments at amortised cost maturing in less than one year

Investments at fair value through statement of income

Investments at fair value through other comprehensive income

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued) 9.

INVESTMENT SECURITIES (continued)

Investment

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

9.

INVESTMENT SECURITIES (continued)

The table below shows the credit quality and the maximum exposure to credit risk based on the Group's credit rating system, aging and year-end stage classification.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

9.

INVESTMENT SECURITIES (continued)

The table below shows the credit quality and the maximum exposure to credit risk based on the Group's credit rating system, aging and year-end stage classification. (continued)

Investments at fair value through other comprehensive income

Gross

10.

Impairment at fair value through other comprehensive income

ECL allowance as at 1 January 2018

Includedhereinareamountsreceivableunderhirepurchaseandfinanceleaseagreementsinthefinancial statementsofvarioussubsidiarycompaniesinthefinancialservicesandretailsectors.Alsoincluded,are other interest bearing loans and advances of the Group which are stated at amortised cost. LOANS, ADVANCES AND OTHER ASSETS

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

10.LOANS, ADVANCES AND OTHER ASSETS (continued)

Hire purchase and finance leases

Mortgages, policy loans and other loans and advances

Total loans and advances

Other assets – reinsurance assets (Note 19)

Total loans, advances and other assets

Current portion

Non-current portion

Hire purchase and finance leases is analysed as follows:

Hire purchase

.

Net hire purchase and finance leases

Mortgages, policy loans and other loans and advances is analysed as follows:

Net mortgages, policy loans and other loans and advances

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued) 10.

LOANS, ADVANCES AND OTHER ASSETS (continued)

Minimum lease payments of hire purchase and finance leases:

After one year but less than five years

Present value of minimum lease payments of hire purchase and finance leases:

After one year but less than five years

Sectorial analysis of total loans, advances and other assets:

2,205,040

Asat31December2019,theGrouphasrepossessedvehicleswithafairvalueof$0.8million(2018:$3.9 million).Repossessedvehiclesaresoldassoonaspractical,withtheproceedsusedtoreducethe outstanding indebtedness.

An analysis of changes in the gross carrying amount and the corresponding ECL allowances is, as follows:

Gross carrying amount at 31 December 2019

Net exposure at 31 December 2019

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

10.

LOANS, ADVANCES AND OTHER ASSETS

AnanalysisofchangesinthegrosscarryingamountandthecorrespondingECLallowancesis,asfollows: (continued)

Gross carrying amount at 31 December 2018

ECL allowance

Net exposure at 31 December 2018

ECL allowance as at 1 January 2019

Translation adjustments

ECL on new instruments issued during the year Other credit loss movements, repayments etc.

Charge-offs and write-offs

Recoveries

ECL allowance at 31 December 2019

ECL allowance as at 1 January 2018

Translation adjustments

ECL on new instruments issued during the year Other credit loss movements, repayments etc.

Charge-offs and write-offs

Recoveries

ECL

at 31 December 2018

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

11. DEFERRED TAXATION

Deferred tax assets

Unutilised tax losses

Employee benefit liability, leases and other

Deferred tax liabilities

Property, plant and equipment

Other Employee benefit asset Life insurance reserves

Unrealised investment gains

Net deferred tax charge

Deferred tax assets

Property, plant and equipment

Employee benefit asset Life insurance reserves

Unrealised investment gains

Net deferred tax charge

ConsolidatedLife reserve statement ofand other 2018incomemovementOCI2019 (Note 26) (Note 26)

–

(Credit) / charge to (Credit) / charge to

ConsolidatedLife reserve statement ofand other 2017incomemovementOCI2018 (Note 26) (Note 26) (131,579)(5,648)––(137,227) (62,008)

298,320(42,239)––256,081 257,5542,880 –(7,953)252,481 33,35018,2683,968–55,586 61,181(22,887)––38,294

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

11. DEFERRED TAXATION (continued)

On20November2018,theGovernmentofBarbadosannouncedachangeinthecorporatetaxrateeffective 1 January 2019. This changed the tax rate from 30% to a sliding scale where:

Taxable profit less than or equal to BB$1.0 million will be taxed at 5.5%;

Taxable profit more than BB$1.0 million but less than or equal to $20.0 million will be taxed at 3.0%;

TaxableprofitoverBB$20.0millionbutlessthanorequaltoBB$30.0millionwillbetaxedat 2.5%; and

Taxable profit over BB$30.0 million will be taxed at 1%.

ThisimpactedthedeferredtaxassetsandliabilitiesoftheGroup'ssubsidiariesbasedinBarbados, increasingnetassetsbyTT$13.7million.Ofthisamount,TT$12.4millionisrecognisedintheconsolidated statementofincomeasacredittothedeferredtaxexpenseandTT$1.3millionisrecognisedwithinthe deferredtaximpactofre-measurementgainsondefinedbenefitplansintheconsolidatedstatementof comprehensive income.

TheGrouphasunutilisedtaxlossesof$493,174(2018:$489,951)availabletobecarriedforwardand appliedagainstfuturetaxableincomeoftheGroup.Theselosseshavenotyetbeenverifiedbytherelevant Revenue authorities.

Somesubsidiarieshaveincurredtaxlosseseitherinthecurrentorprioryear,yetrecogniseddeferredtax assetsof$52,250(2018:$27,189)onsomeoralloftheirtotaltaxationlosses.Therecoverabilityofthese deferredtaxassetsdependsonthesesubsidiaries’abilitytogeneratefuturetaxableprofits.TheGroup believesthatthesedeferredtaxassetsarerecoverablebecausetheselossesareexpectedtosheltertaxable profits in the foreseeable future.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

11. DEFERRED TAXATION (continued)

TheGrouphas$106,986(2018:$26,133)oftaxlosses,representingthesumoftaxlossesforseveralyears carriedforwardandrelatedtosubsidiariesthathaveahistoryoflosses.Thelossesforeachtaxyearexpire after nine years and may not be used to offset taxable income elsewhere in the Group. The subsidiaries have noopportunitiesthatcouldpartlysupporttherecognitionoftheselossesasdeferredtaxassets.Onthis basis,theGrouphasdeterminedthatitcannotrecognisedeferredtaxassetsonthesetaxlossescarried forward.IftheGroupwasabletorecogniseallunrecogniseddeferredtaxassets,netincomeandequity would have increased by $28,168 (2018: $4,059).

EMPLOYEE BENEFITS

TheGrouphasdefinedbenefit,definedcontributionandhybridpensionplanschemesinTrinidad& Tobago,Barbados,JamaicaandGuyana.TheGroupalsoprovidescertainpost-retirementhealthcare benefitstoemployees.Theseplansaregovernedbythedeedsandrulesofthespecificplanandthe employment laws relevant to the jurisdictions in which they operate.

Contributionsrecognisedintheconsolidatedstatementofincomewithrespecttodefinedcontributionplans are as follows:

Contribution expense – Trinidad & Tobago plans

Contribution expense – Overseas plans

Thelevelofpensionbenefitsprovidedunderthedefinedbenefitplansdependsonthemember’slengthof serviceandsalaryatretirementage.Thedefinedbenefitpensionplanrequirescontributionstobemadetoa separatelyadministeredfund.ThefundhasaseparatelegalformandisgovernedbytheBoardofTrustees. TheBoardofTrusteesisresponsiblefortheadministrationoftheplanassetsandforthedefinitionofthe investment strategy.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

12.

EMPLOYEE BENEFITS (continued)

TheBoardofTrusteesperiodicallyreviewstheleveloffundinginthepensionplan.Suchareviewincludes theasset-liabilitymatchingstrategyandinvestmentriskmanagementpolicywhichconsidersthetermofthe pensionobligationwhilesimultaneouslyremainingcompliantwiththerequirementsofthePensionAct.The pensionplansareexposedtoinflation,interestraterisksandchangesinthelifeexpectancyforpensioners intherelevantjurisdictions.Astheplanassetsincludesignificantinvestmentsinquotedequityshares,the Group is also exposed to equity market risk.

Employee benefits asset

& Tobago plans (See Note 12 (a))

(See Note 12 (b))

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

12. EMPLOYEE BENEFITS (continued)

(a)Trinidad and Tobago plans

The amounts recognised in the consolidated statement of financial position are as follows:

1,085,133 Defined benefit pension plans

(1,925,623) (840,490) 18,266 (822,224)

Other postemployment benefits

1,125,025Present value of obligations 69,70268,346 (2,090,189) Fair value of plan assets

(965,164)Benefit (surplus)/deficit 69,70268,346 17,538 Unrecognised portion – –(947,626) 69,702 68,346

BasedonthereportofthePensionPlans’actuary,thepresentvalueofanyeconomicbenefits availableintheformofreductionsinfuturecontributionstothedefinedbenefitplanshas been limited in accordance with IAS 19, ‘Employee Benefits’.

Return on plan assets

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

12. EMPLOYEE BENEFITS (continued)

(a) Trinidad and Tobago plans (continued)

Movements in the net (asset)/liability recognised in the consolidated statement of financial position are as follows:

–the consolidated statement of (820,481) (14,999) 19,221

(822,224) Net (asset)/liability at 1 January

Defined benefit Other postpension plans (5,965) (822,224)

employment benefits

– Acquired in business combination – –Net (income)/expense recognised (11,279) in the consolidated statement of income

Net (income)/expense recognised in (97,803) comprehensive income

(16,320) Contributions/benefits paid

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

12. EMPLOYEE BENEFITS (continued) (a)

Trinidad and Tobago plans (continued)

Changesinthedefinedbenefitobligation,fairvalueofplanassetsandmovementsinotherpostemployment benefit plans:

(gains)/losses in OCI

gains/(losses)

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIAIRES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

12. EMPLOYEE BENEFITS (continued) (a)

Trinidad and Tobago plans (continued)

Changesinthedefinedbenefitobligation,fairvalueofplanassetsandmovementsinotherpostemployment benefit plans:

movements

ANSA McAL LIMITED AND ITS SUBSIDIAIRES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

12. EMPLOYEE BENEFITS (continued) (a)

Trinidad and Tobago plans (continued)

The major categories of plan assets as a percentage of total plan assets are as follows:

Local equities – quoted

Local bonds

Foreign investments

Real estate/mortgages

Short-term securities

Principal actuarial assumptions at the reporting date:

Discount rate at 31 December

Future salary increases

Future medical claims inflation

Shownbelowisaquantitativesensitivityanalysisfortheimpactofsignificantassumptionson the defined benefit obligation:

At 31 December

2019 (132,408)166,61140,545(35,967)5,611(4,513)

At 31 December

2018 (132,360)167,18243,639(38,643)5,555(4,432)

Thesensitivityanalysesabovehavebeendeterminedbasedonamethodthatextrapolatesthe impactonnetdefinedbenefitobligationasaresultofreasonablechangesinkeyassumptions occurring at the end of the reporting period.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIAIRES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

12. EMPLOYEE BENEFITS (continued)

(a)

Trinidad and Tobago plans (continued)

Thepensionplanismaintainedatasignificantsurplus.TheGrouphaschosennottotakeany contributionholidaystoensurethecontinuedhealthoftheplaninchangingeconomic circumstances.TheGroup’scontributionrateof4%to6%ofpensionablesalarieswill continue into the foreseeable future.

TheGroupisexpectedtocontribute$16,054toitsdefinedbenefitplansand$4,333toitspostemployment Trinidad and Tobago benefit plans in 2019.

Theweightedaveragedurationofthedefinedbenefitobligationattheendofthereporting periodis15years(2018:16years)forthedefinedbenefitpensionplanand10years(2018:10 years) for other post-employment benefit plans.

(b)

Overseas plans

The amounts recognised in the consolidated statement of financial position are as follows:

Defined benefit pension plans

Other postemployment benefits

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

12. EMPLOYEE BENEFITS (continued) (b)

Overseas plans (continued)

BasedonthereportofthePensionPlans’actuary,thepresentvalueofanyeconomicbenefits availableintheformofreductionsinfuturecontributionstothedefinedbenefitplanshasbeen limited in accordance with IAS 19, ‘Employee Benefits’.

Return on plan assets:

Actual return on plan assets

Movementsinthenet(asset)/liabilityrecognisedintheconsolidatedstatementoffinancial position are as follows:

Defined benefit pension plans

(54,762)(43,995)

Net (asset)/liability at 1 January

–– Acquired in business combination

Net (income)/expense recognised in the consolidated statement of income

Net (income)/expense recognised in the consolidated statement of comprehensive income

Other postemployment benefits

1,449494 3,5023,098 11,817(5,206) (1,214)(686) (2,499) (2,722) Contributions/benefits paid (917) (962) (43,995) (51,429) 28,172 26,801

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

12. EMPLOYEE

BENEFITS

(continued) (b)

Overseas plans (continued)

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

12. EMPLOYEE BENEFITS

(continued) (b)

Overseas plans (continued)

Changesinthedefinedbenefitobligation,fairvalueofplanassetsandmovementsinotherpostemployment benefit plans:

Re-measurement (gain)/loss in OCI

(99)

(962) Sub-total - other movements (10,067) 7,704 (136) (2,499) (962) Balance at 31 December 2018 210,350 (269,379) 15,034 (43,995) 26,801

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

12. EMPLOYEE BENEFITS (continued) (b)

Overseas plans (continued)

The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:

Fixed deposits

Local equities - quoted, mortgage and real estate Bonds

Principal actuarial assumptions at the reporting date:

Discount rate at 31 December

Future salary increases Future medical claims inflation

Shownbelowisaquantitativesensitivityanalysisfortheimpactofsignificantassumptionsonthe defined benefit obligation:

salary

Assumptions

31 December

31 December

medical Discount rate increases claims inflation

Thesensitivityanalysesabovehavebeendeterminedbasedonamethodthatextrapolatestheimpacton netdefinedbenefitobligationasaresultofreasonablechangesinkeyassumptionsoccurringattheend of the reporting period.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

12. EMPLOYEE BENEFITS (continued) (b)

Overseas plans (continued)

Thepensionplanismaintainedatasignificantsurplus.TheGrouphaschosennottotakeany contributionholidaystoensurethecontinuedhealthoftheplaninchangingeconomiccircumstances. TheGroup’scontributionrateofupto5%ofpensionablesalarieswillcontinueintotheforeseeable future.

TheGroupisexpectedtocontribute$2,438toitsdefinedbenefitplansand$726toitspost-employment Trinidad and Tobago benefit plans in 2020.

Theaveragedurationofthedefinedbenefitobligationattheendofthereportingperiodis17years (2018:17years)forthedefinedbenefitplanand24years(2018:24years)fortheotherpostemployment benefits.

13. INVENTORIES

Finished goods

Raw materials and work in progress

Goods in transit

Consumables and spares

789,865893,356 189,120180,145 133,134227,850 62,694 40,815 1,174,813 1,342,166

The amount of inventories written back to cost of sales for the year amounted to $17,968 (2018: $62,359).

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

14. TRADE, OTHER RECEIVABLES AND CONTRACT ASSETS

Trade (net of provision)

Due from associates and joint venture interests (Note 34)

Due from other related parties (Note 34)

Right of return assets (Note 22)

Contract assets (Note 22)

Prepayments

Interest receivable

Insurance receivable

VAT recoverable

Taxation recoverable

Other receivables

As at 31 December 2019, the Group has contract assets of $16,206 (2018: $14,761).

Set out below is the movement in the allowance for expected credit losses of trade and other receivables:

Balance at 1 January

Effect of adoption of IFRS 9

Charge for the year (Note 24)

Recoveries, reversals and other

Balance at 31 December

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

14. TRADE, OTHER RECEIVABLES AND CONTRACT ASSETS (continued)

As at 31 December, the ageing analysis of trade receivables is as follows:

730,465254,270325,198150,997 754,612395,343277,56381,706

ThesignificantchangesinthebalancesoftradereceivablesandcontractassetsaredisclosedinNote22(b) while the information about the credit exposures are disclosed in Note 32.

15. CASH AND SHORT TERM DEPOSITS 2019 2018 1,553,1941,404,082 391,595312,061 119,169 71,314 2,063,958 1,787,457

Cash and bank balances Short term deposits

Fixed deposits

Cashatbankearnsinterestatfloatingratesbasedondailybankdepositrates.Shorttermdepositsaremade forvaryingperiodsofbetweenonedayandthreemonthsandearnsinterestattherespectiveshort-term deposit rates. Fixed deposits carry maturity periods in excess of three months but within twelve months.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

15. CASH AND SHORT TERM DEPOSITS (continued)

For the purpose of the consolidated statement of cash flows, cash and cash equivalents are derived as follows:

Cash and short term deposits

Less: Central Bank reserve

Central Bank reserve:

TheCentralBankReservebalancerepresentstheamountsheldattheCentralBankofTrinidadandTobago andtheCentralBankofBarbadosasrequiredundertherespectiveregulatorypronouncements.TheCentral BankofTrinidadandTobagoreserveaccountrepresents9%ofaverageliabilitiesandisnon-interestbearing. TheCentralBankofBarbadosreserveaccountrepresents5%ofaveragedepositliabilitiesandearned interest of 0.10% (2018: 0.10%).

Thesefundsarenotavailabletofinancedaytodayoperationsandassuchareexcludedfromthecash reserves to arrive at cash and cash equivalents.

16. STATED CAPITAL AND OTHER RESERVES

Authorised

Unlimited cumulative preference shares of no par value

Unlimited ordinary shares of no par value

Issued and fully paid

1,630 6% cumulative preference shares of no par value

163 176,197,617 (2018: 176,192,841) ordinary shares of no par value converted into ordinary stock transferable in

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

16. STATED CAPITAL AND OTHER RESERVES (continued)

At 1 January 2018

Value of equity settled share based compensation Stock options exercised during the year

At 31 December 2018

Value of equity settled share based compensation Stock options exercised during the year

At 31 December 2019

Treasury shares

The number and value of own equity shares (treasury shares) held by the Group is:

Treasury shares

Number of shares (000’s)

Value of shares (cost - $000’s)

3,9933,853 19,75623,856

AsdetailedinNote2(xxiv),theGroupoperatesanEmployeeShareOwnershipPlan(ESOP)inwhich sharespurchasedbythePlanarevestedinthenameoftheTrustee.ThecostoftheseunallocatedESOP shares are accounted for and disclosed within equity as treasury shares.

Participation in the Plan is entirely voluntary and details are as follows:

Number of members

Number of allocated shares (000’s)

Market value of allocated shares held at 31 December ($000’s)

428460 1,4191,981 78,307108,955

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

16.

Other reserves

Balance, 1 January 2018

Total other comprehensive income for the year Transfers and other movements

Balance, 31 December 2018

Total other comprehensive income for the year Transfers and other movements

Balance, 31 December 2019

Nature and purpose of other reserves

Statutory reserve fund

Statutory surplus reserve STATED CAPITAL AND OTHER RESERVES (continued)

Attributable to equity holders of the Parent

TheFinancialInstitutionsActintherespectivejurisdictionoftheGroup’sMerchantBankingsubsidiaries, requiresthatnotlessthan10%ofthenetprofitoftheBankafterdeductionoftaxesineachyearbe transferredtoastatutoryreservefunduntilthebalancestandingtothecreditofthisreserveisequaltothe paid up capital of the Merchant Bank.

AsrequiredbySection171oftheInsuranceAct1980ofTrinidadandTobagoatleast25%oftheInsurance subsidiary’sprofitfromgeneralinsurancebusiness,fortheprecedingyearistobeappropriatedtowardsa statutorysurplusreserveuntilsuchsurplusequalsorexceedsthereservesinrespectofitsoutstanding unexpired policies. This reserve is not distributable.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

16.

STATED CAPITAL AND OTHER RESERVES (continued)

General loan loss reserve

TheGroup’sMerchantBankingsubsidiaryhasestablishedageneralreserveforloanlossesinaccordance withtheguidelinesissuedbytheCentralBankofTrinidadandTobago.Thereservehasbeencalculatedat 0.5%oftheloanbalanceattheyearendandencompasseshirepurchaseloans,financeleasesandpremium financingloansafterdeductingunearnedfinancecharges.Thisreservehasbeenaccountedforasan appropriationofretainedearningsandisincludedinotherreservesintheconsolidatedstatementofchanges in equity.

Foreign currency reserve

Theforeigncurrencyreserveisusedtorecordexchangedifferencesarisingfromthetranslationofthe financialstatementsofforeignsubsidiariesintoTrinidadandTobagodollars(theGroup’spresentation currency).

17. CUSTOMERS' DEPOSITS AND OTHER FUNDING INSTRUMENTS

Sectoral analysis is as follows:

Amounts due: Within 1 year Over 1 year

Thisbalancerepresentsdepositliabilitiesandotherfundinginstrumentsincludedinthefinancialstatements of the various subsidiary companies that are financial institutions.

Individuals Pension funds/Credit unions/Trustees Private companies/estates/financial institutions

725,304721,605 709,182 995,477 2,519,863 2,729,220

Customers’depositsandotherfundinginstrumentsincludeinvestmentcontractliabilitiesof$269,060(2018: $269,117).Theseinvestmentcontractliabilitieshaveneitherreinsurancearrangementsnordiscretionary participation features.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

18. MEDIUM AND LONG TERM NOTES AND OTHER BORROWINGS

Amounts due: Within 1 year Over 1 year

Medium and long term notes

Notes issued by the Group's Merchant Banking Subsidiary

On2August2011,theGroup'sMerchantBankingSubsidiary("theBank")issuedUS$50millionmediumtermnotesinthreetranches,twoofwhichmaturedin2014andin2016.US$15million,representingthe thirdandlasttranchewhichcarriedinterestat5.20%,maturedin2018.InSeptember2015,theBankissued anadditionalUS$30millionmedium-termnotematuringon17September2021.Interestwassetatafixed rate of 4% per annum.

InNovember2014,theBankissuedaTT$250millionmedium-termnotematuringon28November2022. Interestwassetatafixedrateof3.35%perannum.AnadditionalTT$350millionmedium-termnotewas issuedon5June2015,withtheinterestsetatafixedrateof3.75%perannum,matured28November2018. On3October2016,theBankissuedTT$100.8millionpromissorynotesinthreetranchesofTT$33.6million each which were repaid on 23 June 2017.

Loan to finance acquisition

ThepurposeofthisloanwastofinancetheacquisitionofLewisBergerOverseasHoldingsLimitedandthe Bergerbrands.ThisloanwasissuedforafacevalueofUS$40millionon26April2017andmatureson26 April2024.Interestisfixedat4.62%.Thisloanisrepayablevia14semi-annualinstalmentsofprincipaland interest.ThecurrentportionofthisamountingtoTT$8.0millionisincludedinthecurrentportionofmedium and long term notes.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

18. MEDIUM AND LONG TERM NOTES AND OTHER BORROWINGS (continued)

Short term borrowings

This relates to bank overdrafts and short term debt.

Other interest bearing debt

This relates to lease financing acquired from third parties in Jamaica.

19.

INSURANCE

CONTRACT LIABILITIES

Due within one year: General insurance contracts

Due over one year:

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

19.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued) 16.

(continued)

STATED CAPITAL AND OTHER RESERVES (continued)

Other reserves

Attributable to equity holders of the Parent

Balance, 1 January 2018

Total other comprehensive income for the year Transfers and other movements

may be analysed as

Balance, 31 December 2018

Total other comprehensive income for the year Transfers and other movements

Balance, 31 December 2019

Nature and purpose of other reserves

Statutory reserve fund

TheFinancialInstitutionsActintherespectivejurisdictionoftheGroup’sMerchantBankingsubsidiaries, requiresthatnotlessthan10%ofthenetprofitoftheBankafterdeductionoftaxesineachyearbe transferredtoastatutoryreservefunduntilthebalancestandingtothecreditofthisreserveisequaltothe paid up capital of the Merchant Bank.

Statutory surplus reserve

AsrequiredbySection171oftheInsuranceAct1980ofTrinidadandTobagoatleast25%oftheInsurance subsidiary’sprofitfromgeneralinsurancebusiness,fortheprecedingyearistobeappropriatedtowardsa statutorysurplusreserveuntilsuchsurplusequalsorexceedsthereservesinrespectofitsoutstanding unexpired policies. This reserve is not distributable.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

19.

16.

Other reserves

Premiums received

Balance, 1 January 2018

(continued)

Liabilities realised for payment on death, surrender and other terminations in the year a) Life insurance contract liabilities may be analysed as follows: (continued)

Total other comprehensive income for the year Transfers and other movements

31 December

Balance, 31 December 2018

Total other comprehensive income for the year Transfers and other movements

Balance, 31 December 2019

Nature and purpose of other reserves

Statutory reserve fund

Statutory surplus reserve STATED CAPITAL AND OTHER RESERVES (continued)

Attributable to equity holders of the Parent

226,00363,2216,29049,922345,436 –––646646 14,1313,3188,56677626,791 240,13466,53914,85651,345372,874 –––(8,315)(8,315) 15,890–590(2,516)13,964 256,02466,53915,44640,514378,523

TheFinancialInstitutionsActintherespectivejurisdictionoftheGroup’sMerchantBankingsubsidiaries, requiresthatnotlessthan10%ofthenetprofitoftheBankafterdeductionoftaxesineachyearbe transferredtoastatutoryreservefunduntilthebalancestandingtothecreditofthisreserveisequaltothe paid up capital of the Merchant Bank.

AsrequiredbySection171oftheInsuranceAct1980ofTrinidadandTobagoatleast25%oftheInsurance subsidiary’sprofitfromgeneralinsurancebusiness,fortheprecedingyearistobeappropriatedtowardsa statutorysurplusreserveuntilsuchsurplusequalsorexceedsthereservesinrespectofitsoutstanding unexpired policies. This reserve is not distributable.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

19.

INSURANCE CONTRACT LIABILITIES (continued)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued) 16.

Other reserves

b) General insurance contract liabilities may be analysed as follows: Increase in liabilities

i) Claims reported and IBNR

Balance, 1 January 2018

Provisions for unearned premiums and unexpired notes

Total other comprehensive income for the year Transfers and other movements

Provisions for claims reported by policy holders

Provisions for claims incurred but not reported (IBNR)

Balance, 31 December 2018

Cash paid for claims settled in the year

Total other comprehensive income for the year Transfers and other movements

Balance, 31 December 2019

Nature and purpose of other reserves

Statutory reserve fund

Statutory surplus reserve STATED CAPITAL AND OTHER RESERVES (continued)

Attributable to equity holders of the Parent

TheFinancialInstitutionsActintherespectivejurisdictionoftheGroup’sMerchantBankingsubsidiaries, requiresthatnotlessthan10%ofthenetprofitoftheBankafterdeductionoftaxesineachyearbe transferredtoastatutoryreservefunduntilthebalancestandingtothecreditofthisreserveisequaltothe paid up capital of the Merchant Bank.

AsrequiredbySection171oftheInsuranceAct1980ofTrinidadandTobagoatleast25%oftheInsurance subsidiary’sprofitfromgeneralinsurancebusiness,fortheprecedingyearistobeappropriatedtowardsa statutorysurplusreserveuntilsuchsurplusequalsorexceedsthereservesinrespectofitsoutstanding unexpired policies. This reserve is not distributable.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

INSURANCE CONTRACT LIABILITIES (continued)

16.

19. (b) General insurance contract liabilities may be analysed as follows (continued):

Other reserves

i) Claims reported and IBNR (continued)

Balance, 1 January 2018

Provision for claims reported by policy holders Provision for claims incurred but not reported (IBNR)

Total other comprehensive income for the year Transfers and other movements

Balance, 31 December 2018

Total other comprehensive income for the year Transfers and other movements

Balance, 31 December 2019

Nature and purpose of other reserves

Statutory reserve fund

Statutory surplus reserve STATED CAPITAL AND OTHER RESERVES (continued)

Attributable to equity holders of the Parent

226,00363,2216,29049,922345,436 –––646646 14,1313,3188,56677626,791 240,13466,53914,85651,345372,874 –––(8,315)(8,315) 15,890–590(2,516)13,964 256,02466,53915,44640,514378,523

TheFinancialInstitutionsActintherespectivejurisdictionoftheGroup’sMerchantBankingsubsidiaries, requiresthatnotlessthan10%ofthenetprofitoftheBankafterdeductionoftaxesineachyearbe transferredtoastatutoryreservefunduntilthebalancestandingtothecreditofthisreserveisequaltothe paid up capital of the Merchant Bank.

AsrequiredbySection171oftheInsuranceAct1980ofTrinidadandTobagoatleast25%oftheInsurance subsidiary’sprofitfromgeneralinsurancebusiness,fortheprecedingyearistobeappropriatedtowardsa statutorysurplusreserveuntilsuchsurplusequalsorexceedsthereservesinrespectofitsoutstanding unexpired policies. This reserve is not distributable.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

19.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

16.

INSURANCE CONTRACT LIABILITIES (continued)

STATED CAPITAL AND OTHER RESERVES (continued)

(b) General insurance contract liabilities may be analysed as follows (continued):

Other reserves

ii) Provisions for unearned premiums and unexpired risk

Attributable to equity holders of the Parent

Balance, 1 January 2018

Provisions for unearned premiums

Provision for unexpired risk

Total other comprehensive income for the year Transfers and other movements

Increase/(decrease) in the period

Release in the period

Balance, 31 December 2018

Provision for unearned premiums

Total other comprehensive income for the year Transfers and other movements

Provision for unexpired risk

Balance, 31 December 2019

Nature and purpose of other reserves

Statutory reserve fund

TheFinancialInstitutionsActintherespectivejurisdictionoftheGroup’sMerchantBankingsubsidiaries, requiresthatnotlessthan10%ofthenetprofitoftheBankafterdeductionoftaxesineachyearbe transferredtoastatutoryreservefunduntilthebalancestandingtothecreditofthisreserveisequaltothe paid up capital of the Merchant Bank.

Statutory surplus reserve

AsrequiredbySection171oftheInsuranceAct1980ofTrinidadandTobagoatleast25%oftheInsurance subsidiary’sprofitfromgeneralinsurancebusiness,fortheprecedingyearistobeappropriatedtowardsa statutorysurplusreserveuntilsuchsurplusequalsorexceedsthereservesinrespectofitsoutstanding unexpired policies. This reserve is not distributable.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

(Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

19.

INSURANCE CONTRACT LIABILITIES (continued)

STATED CAPITAL AND OTHER RESERVES (continued)

Claims development table

Other reserves

Attributable to equity holders of the Parent

Therisksassociatedwiththeseinsurancecontractsandinparticular,casualtyinsurancecontracts,arecomplexandsubjecttoanumberofvariables thatcomplicatequantitativesensitivityanalysis.TheGrouphasnoknownorreportedlatentclaimssuchasdiseaseorasbestosisandthereforeno actuarialanalysisismade.ThedevelopmentofinsuranceliabilitiesprovidesameasureoftheGroup’sabilitytoestimatetheultimatevalueofclaims.

The table below illustrates how the Group’s estimate of total claims outstanding for each underwriting year has changed at successive year ends.

16. Statutory Statutory General Foreign reserve surplus loan loss currency fund reserve reserve & other Total

Accident year - Gross

Estimate of outstanding claims costs (gross):

Balance, 1 January 2018

- at end of accident year - one year later

- two years later

Total other comprehensive income for the year Transfers and other movements

- three years later

- four years later - five years later

Balance, 31 December 2018

Current estimate of cumulative claims

Cumulative payments to date

Total other comprehensive income for the year Transfers and other movements

Liability recognised in the consolidated statement of financial position

Balance, 31 December 2019

Total liability in respect of prior years

226,00363,2216,29049,922345,436 –––646646 14,1313,3188,56677626,791 240,13466,53914,85651,345372,874 –––(8,315)(8,315) 15,890–590(2,516)13,964 256,02466,53915,44640,514378,523

liability included in the consolidated statement of financial position

Nature and purpose of other reserves

Statutory reserve fund

TheFinancialInstitutionsActintherespectivejurisdictionoftheGroup’sMerchantBankingsubsidiaries, requiresthatnotlessthan10%ofthenetprofitoftheBankafterdeductionoftaxesineachyearbe transferredtoastatutoryreservefunduntilthebalancestandingtothecreditofthisreserveisequaltothe paid up capital of the Merchant Bank.

Statutory surplus reserve

AsrequiredbySection171oftheInsuranceAct1980ofTrinidadandTobagoatleast25%oftheInsurance subsidiary’sprofitfromgeneralinsurancebusiness,fortheprecedingyearistobeappropriatedtowardsa statutorysurplusreserveuntilsuchsurplusequalsorexceedsthereservesinrespectofitsoutstanding unexpired policies. This reserve is not distributable.

Annual Report Financials 2019

McAL LIMITED AND ITS SUBSIDIARIES

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

19.

INSURANCE CONTRACT LIABILITIES (continued)

16.

STATED CAPITAL AND OTHER RESERVES (continued)

Claims development table

Other reserves

Therisksassociatedwiththeseinsurancecontractsandinparticular,casualtyinsurancecontracts,arecomplexandsubjecttoanumberofvariables thatcomplicatequantitativesensitivityanalysis.TheGrouphasnoknownorreportedlatentclaimssuchasdiseaseorasbestosisandthereforeno actuarialanalysisismade.ThedevelopmentofinsuranceliabilitiesprovidesameasureoftheGroup’sabilitytoestimatetheultimatevalueof claims.ThetablebelowillustrateshowtheGroup’sestimateoftotalclaimsoutstandingforeachunderwritingyearhaschangedatsuccessiveyear ends.

Attributable to equity holders of the Parent

Underwriting year

Estimate

Balance, 1 January 2018

(gross):

- at end of accident year - one year later

- two years later

Total other comprehensive income for the year

- three years later

Transfers and other movements

- four years later

- five years later

Balance, 31 December 2018

Current estimate of cumulative claims

Cumulative payments to date

Total other comprehensive income for the year

Transfers and other movements

Liability recognised in the consolidated statement of financial position

Balance, 31 December 2019

Total liability in respect of prior years

included in the consolidated statement of financial

Nature and purpose of other reserves

Statutory reserve fund

TheFinancialInstitutionsActintherespectivejurisdictionoftheGroup’sMerchantBankingsubsidiaries, requiresthatnotlessthan10%ofthenetprofitoftheBankafterdeductionoftaxesineachyearbe transferredtoastatutoryreservefunduntilthebalancestandingtothecreditofthisreserveisequaltothe paid up capital of the Merchant Bank.

Statutory surplus reserve

AsrequiredbySection171oftheInsuranceAct1980ofTrinidadandTobagoatleast25%oftheInsurance subsidiary’sprofitfromgeneralinsurancebusiness,fortheprecedingyearistobeappropriatedtowardsa statutorysurplusreserveuntilsuchsurplusequalsorexceedsthereservesinrespectofitsoutstanding unexpired policies. This reserve is not distributable.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

20. (a)

INSURANCECONTRACTS,INVESTMENTCONTRACTSANDREINSURANCE ASSETS - TERMS, ASSUMPTIONS AND SENSITIVITIES

Life insurance contracts and investment contracts

Terms and conditions

InsurancesubsidiariesintheGroupofferacombinationofindividuallife,pension,annuity andgrouplifecontractswithandwithoutdiscretionaryparticipationfeatures.These contractsaredeterminedbyactuariesandallsubsequentvaluationassumptionsare determined by independent consulting actuaries.

Key assumptions

Materialjudgmentisrequiredindeterminingtheliabilitiesandinthechoiceofassumptions relatingtobothlifeinsurancecontractsandinvestmentcontracts.Assumptionsinuseare basedonpastexperience,currentinternaldataandconditionsandexternalmarketindices andbenchmarks,whichreflectcurrentobservablemarketpricesandotherpublished information.Assumptionsaredeterminedasappropriateandprudentestimatesaremadeat thedateofvaluation.Assumptionsarefurtherevaluatedonacontinuousbasisinorderto ensure realistic and reasonable valuations.

Forinsurancecontracts,estimatesaremadeintwostages.Firstly,atinceptionofthe contract,theGroupdeterminestheassumptionsinrelationtofuturedeaths,voluntary terminations,investmentreturnsandadministrationexpenses.Secondly,attheendofeach reportingperiod,newestimatesaredevelopedtodeterminewhethertheliabilitiesare appropriate in light of the latest current estimates.

Forinvestmentcontracts,assumptionsusedtodeterminetheliabilitiesarealsoupdatedatthe end of each reporting period to reflect latest estimates.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

20. (a)

INSURANCECONTRACTS,INVESTMENTCONTRACTSANDREINSURANCE ASSETS - TERMS, ASSUMPTIONS AND SENSITIVITIES (continued)

Life insurance contracts and investment contracts (continued)

Key assumptions (continued)

Thekeyassumptionstowhichtheestimationofliabilitiesisparticularlysensitiveareas follows:

Mortality and morbidity rates

Assumptionsarebasedonunderlyingexperienceaswellasstandardindustrymortality tables,accordingtothetypeofcontractwritten.Forcontractsthatinsuretheriskof longevity,appropriatebutnotexcessivelyprudentallowanceismadeforexpectedfuture mortalityimprovements.Assumptionsaredifferentiatedbysex,underwritingclassand contract type.

Mortalityrateshigherthanexpectedwillleadtoalargernumberofinsuranceclaimsand claimswilloccursoonerthananticipated,whichwillincreasetheexpenditureandreduce profits for the shareholders.

Investment return

Theweightedaveragerateofreturnisderivedfromamodelportfoliothatisassumedtoback liabilities,consistentwiththelong-termassetallocationstrategy.Theseestimatesarebased oncurrentmarketreturnsaswellasexpectationsaboutfutureeconomicandfinancial developments.Anincreaseininvestmentreturnwouldleadtoanincreaseinprofitsforthe shareholders.

Expenses

Operatingexpenseassumptionsreflecttheprojectedcostsofmaintainingandservicinginforcepoliciesandassociatedoverheadexpenses.Anincreaseinthelevelofexpenseswould result in an increase in expenditure thereby reducing profits for the shareholders.

Lapse and surrender rates

Lapsesrelatetotheterminationofpoliciesduetonon-paymentofpremiums.Surrenders relatetothevoluntaryterminationofpoliciesbypolicyholders.Policytermination assumptionsaredeterminedusingstatisticalmeasuresbasedontheGroup’sexperienceand vary by product type, policy duration and changes in policyholders’ circumstances.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

20. (a)

(continued)

Lapse and surrender rates (continued)

Theimpactofadecreaseinlapseratesatearlydurationofthepolicywouldtendtoreduce profitsfortheshareholdersbutlapseratesatlaterpolicydurationsisbroadlyneutralin effect.

Thetablebelowillustratestheimpactofvariouschangesinassumptionswhicharewithina reasonablerangeofpossibleoutcomesgiventheuncertaintiesinvolvedintheestimation process.Itdemonstratestheeffectofchangesinkeyassumptionswhilstotherassumptions remainunchanged,iftheseassumptionswerechangedinasinglecalendaryear.The correlationofassumptionswillhaveasignificanteffectindeterminingtheultimateclaims liabilities,buttodemonstratetheimpactontheclaimsliabilitiesduetochangesin assumptions,theseassumptionchangeshadtobedoneonanindividualbasis.Itshouldalso bestressedthattheseassumptionsarenonlinearandlargerorsmallerimpactscannoteasily be gleaned from these results.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

20. (b)

General insurance contracts

Terms and conditions

ThemajorclassesofgeneralinsurancewrittenbyinsurancesubsidiariesintheGroup includemotor,property,casualty,marine,generalaccidentandothermiscellaneoustypesof general insurance. Risks under these policies usually cover a 12 month duration.

Forgeneralinsurancecontracts,claimsprovisions(comprisingprovisionsforclaimsreported bypolicyholdersandclaimsincurredbutnotyetreported)areestablishedtocoverthe ultimatecostofsettlingtheliabilitiesinrespectofclaimsthathaveoccurredandare estimated based on known facts at the end of reporting period.

Theprovisionsarerefinedaspartofaregularongoingprocessasclaimsexperience develops,certainclaimsaresettledandfurtherclaimsarereported.Outstandingclaims provisions are not discounted for the time value of money.

Assumptions INSURANCECONTRACTS,INVESTMENTCONTRACTSANDREINSURANCE ASSETS - TERMS, ASSUMPTIONS AND SENSITIVITIES (continued)

TheprincipalassumptionunderlyingtheestimatesistheGroup’spastclaimsdevelopment experience.Thisincludesassumptionsinrespectofaveragecostsandclaimnumbersfor eachaccidentyear.Claimsprovisionsareseparatelyanalysedbygeographicalareaandclass ofbusiness.Inaddition,largerclaimsareusuallyseparatelyassessedbylossadjusters. Judgmentisusedtoassesstheextenttowhichexternalfactorssuchasjudicialdecisionsand governmentlegislationaffecttheestimates,aswellastestingreportedclaimssubsequentto the end of reporting period.

Thegeneralinsuranceclaimsprovisionissensitivetotheabovekeyassumptions.The sensitivityofcertainassumptionslikelegislativechange,uncertaintyintheestimation processandotherfactorsisnotpossibletoquantify.Furthermore,becauseofdelaysthat arisebetweentheoccurrenceofaclaimanditssubsequentnotificationandeventual settlement,theoutstandingclaimsprovisionsarenotknownwithcertaintyattheendofthe reporting period.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

20.

INSURANCECONTRACTS,INVESTMENTCONTRACTSANDREINSURANCE ASSETS - TERMS, ASSUMPTIONS AND SENSITIVITIES (continued)

(b) General insurance contracts (continued) Assumptions (continued) Sensitivities

Consequently,theultimateliabilitieswillvaryasaresultofsubsequentdevelopments. Differencesresultingfromreassessmentoftheultimateliabilitiesarerecognisedin subsequent consolidated financial statements.

21. TRADE AND OTHER PAYABLES 2019 2018 538,941655,978 613,062 1,084560 84,75898,911 21,56914,527 222,970227,789 3,5362,408 12,05110,631 416,165 219,138 1,301,134 1,233,004

Trade

Due to associates and joint venture interests (Note 34)

Due to other related parties (Note 34)

Due to statutory authorities Client funds Accruals

Refund liabilities (Note 22)

Contract liabilities (Note 22)

Other payables

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

22.REVENUE FROM CONTRACTS WITH CUSTOMERS

a) Disaggregated revenue information

For the year ended 31 December 2019

For the year ended 31 December 2018

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Contract liabilities (Note 21) FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

22. REVENUE FROM CONTRACTS WITH CUSTOMERS (continued)

b) Contract balances

Trade receivables (Note 14)

Contract assets (Note 14)

730,465 754,612 16,20614,761 12,05110,631

Tradereceivablesarenon-interestbearingandaregenerallyontermsof30to90days.In2019, $104,609(2018:$90,082)wasrecognisedasprovisionforexpectedcreditlossesontradereceivables. There were no major changes to the trade receivables balance from the beginning to the end of the year.

Contractassetsareinitiallyrecognisedforrevenueearnedfrominstallationservicesasreceiptof considerationisconditionalonsuccessfulcompletionofspecificmilestonesoroftheentireinstallation process.Uponacceptancebythecustomer,theamountsrecognisedascontractassetsarereclassifiedto tradereceivables.In2019and2018,noprovisionwasrecognisedforexpectedcreditlossesoncontract assets.

Contractliabilitiesrelatetobillingsmadetocustomersforwhichnorevenuewasrecognised.These billingsmayhavebeenbasedonmilestonesbeingmetthatarenotreflectiveofmeaningfulprogress towardsthesatisfactionofperformanceobligations.Billingsmayalsobebasedonadvancesrequired prior to or on commencement of work.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019

(Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

22. REVENUE FROM CONTRACTS WITH CUSTOMERS

(continued)

c) Right of return assets and liabilities

- Arising from rights of return

d) Performance obligations

Automotive sector Refund liabilities (Note 21)

Forthesaleofmotorvehiclesandvehicleparts,theperformanceobligationissatisfiedupondeliveryof thevehicleorthevehiclepartstothecustomer.Paymentisdueupondeliveryandissometimes completedthroughafinancialinstitutionviaavehicularloaninthecaseofmotorvehiclesales.Inthe caseofcreditcustomers,paymentisduewithin30daysofdelivery.Customersaregrantedassurancetypewarrantiesthatcovermanufacturerdefectsonly.Partialrefundsareprovidedtocustomerswho return vehicle parts within the stipulated return period.

Forvehiclerepairsoras-requiredservicing,theperformanceobligationissatisfieduponthecompletion ofrepairsorservicing,whichisusuallycompletedwithinoneday.Paymentisdueupondeliveryofthe repaired or serviced vehicle, or within 30 days, in the case of credit customers.

Vehicleservicingpackagesarealsosoldtocustomers.Theseperformanceobligationsaresatisfiedover time, with payment being required at the inception of the contract.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES

TO THE CONSOLIDATED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

(Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

22. REVENUE FROM CONTRACTS WITH CUSTOMERS

(continued)

d) Performance obligations (continued)

Beverage sector

Theperformanceobligationissatisfiedupondeliveryofthebeveragesand/orbottles.Thetermsof paymentaredeterminedbypriorapprovalandcanbecash,cashondelivery,orcreditforaperiodof7, 21or30days.Returnsduetodamagedorexpiredproductsorsaleserrorsareentitledtofullrefunds. Suchreturnsusuallyoccurwithinonemonthofdelivery.Emptybottlesandcratesingoodconditioncan bereturnedatanytimeinexchangeforapartialrefund.Adepositliabilityhasbeencreatedbasedon the historic trends of such returns. Companies in this sector have no warranties.

Distribution sector

Theperformanceobligationissatisfiedupondeliveryofvariousconsumerproducts.Thetermsof paymentaredeterminedbypriorapprovalandcanbecash,cashondelivery,orcreditforaperiodof7, 21or30days.Returnsduetodamagedorexpiredproductsorsaleserrorsareentitledtofullorpartial refunds.Suchreturnsusuallyoccurwithinonemonthofdelivery,butmayoccasionallyoccuroutsideof this period. Companies in this sector have no warranties.

Financial services sector

Revenuefromcontractswithcustomersinthissectorrelatestoinvestmentmanagementandarrangement fees and spread income. The performance obligation for:

• • • Manufacturing sector

Investment management fees is satisfied over time and payment is due quarterly in arrears.

Arrangementfeesissatisfiedupondisbursementoftherelevantloanandpaymentisdueatthat time.

Spreadincomeissatisfieduponthedisbursementoftheinterestpaymenttoinvestorsand payment is due at that time.

Theperformanceobligationissatisfiedupondeliveryofmanufacturedproductsorofequipment purchasedforresale.Thetermsofpaymentaredeterminedbypriorapprovalandcanbecash,cashon delivery,orcreditforaperiodof7,21or30days.Returnsduetodamagedorfaultyproductsorsales errorsareentitledtofullorpartialrefunds.Suchreturnsusuallyoccurwithinonemonthofdeliverybut mayoccasionallyoccuroutsideofthisperiod.Warrantiesforequipmentpurchasedforresaleare provided for manufacturers' defects only.

Annual

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

22. REVENUE FROM CONTRACTS WITH CUSTOMERS (continued)

d) Performance obligations (continued)

Manufacturing sector (continued)

Theperformanceobligationfortheservicingofequipmentas-and-whenrequiredisperformedwhenthe servicingiscompleted.Thetermsofpaymentaredeterminedbypriorapprovalandcanbecash,cashon delivery, or credit for a period of 7, 21 or 30 days.

Equipmentservicingpackagesarealsosoldtocustomers.Theseperformanceobligationsaresatisfied over time, with payment being required at the inception of the contract.

Insomecases,installationservicesareprovidedtocustomerswhopurchasemanufacturedproductsor equipmentpurchasedforresale.Thisperformanceobligationisseparatefromthatforthesupplyofthe relevantitemandissatisfiedover-time.Paymenttermsvarydependingonthecontractterms.Inthecase ofshort-termcontracts,paymentisgenerallyduewithin30daysofthecompletionoftheinstallation.In the case of long-term contracts, payment is due according to a schedule of specific milestones.

Services sector

Performanceobligationsinthissectoraregenerallysatisfiedovertime,howeverinmanycases,these performanceobligationsaretypicallycompletedwithinadayorafewdaysandthereforearerecognised asiftheyaresatisfiedatapointintimeforsimplicity.Theseperformanceobligationsincludethe supervisionofloadingorunloadingofcontainersonavessel,thefacilitationofpaymentstoprincipals bytheultimatecustomer,theco-ordinationofallactivitiesrelatingtotheprocessingofvoyagesthrough variousportsandthemonitoringofthemovementofcontainers.Paymentisduewithin30daysof completion of the relevant service.

Thesupplyandinstallationofofficeequipment,includinginformationtechnologysolutionsare consideredseparateperformanceobligations,satisfiedupondeliveryoftheequipmentorsolutionand overtheperiodofinstallation,respectively.Forsupplyonlycontracts,paymentisrequiredwithin30 daysofdelivery.Forsupplyandinstallationcontracts,paymentisoftenbasedonascheduleof milestones.Noreturnsorrefundsareallowedascustomersmustsignacompletioncertificate confirmingsuccessfulinstallation.Anassurance-typewarrantyofonetotwoyearsisprovided,which covers manufacturers' defects only.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED

FOR THE YEAR ENDED 31 DECEMBER 2019

(Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

22. REVENUE FROM CONTRACTS WITH CUSTOMERS (continued)

d) Performance obligations (continued)

Performanceobligationsinthissectoraresatisfiedupontheappearanceoftheadvertisement,the deliveryofnewspapersandtheprintingofthird-partypublications.Paymentisduewithin30daysofthe completionoftherelevantperformanceobligations.Refundsaregrantedonlyiftherelevant performance obligation was not completed to the satisfaction of the customer. There are no warranties.

Wherecustomersaregrantedaccesstotheonlinenewspaperoradvertisementsareplacedforaperiod oftimeonabillboard,theperformanceobligationissatisfiedoverthesubscriptionperiod.Paymentis dueatinceptionofthecontract.Refundsaregrantedonlyiftherelevantperformanceobligationwasnot completed to the satisfaction of the customer. There are no warranties.

Theperformanceobligationiscompletedupondeliveryoftherelevantretailproducts.Paymentis generallyduewithin30daysofdelivery.Partialorfullrefundsareprovidedforreturnswithinthe stipulatedreturnperiod,whichvariesfromcompanytocompany.Forsomeretailproducts,an assurancetype warranty of one to two years is provided, which covers manufacturers' defects only.

Anextendedorservice-typewarrantyisprovidedforsomeretailproducts.Thisperformanceobligation iscompletedovertheperiodoftheextendedwarranty.Paymentisdueatinceptionofthecontract.No refunds are allowed.

Thetransactionpriceallocatedtotheremainingperformanceobligations(unsatisfiedorpartially unsatisfied) as at 31 December are, as follows:

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

22. REVENUE FROM CONTRACTS WITH CUSTOMERS (continued)

d) Performance obligations (continued)

Theremainingperformanceobligationsexpectedtoberecognisedinmorethanoneyearrelateto installationservicesonvariouslong-termcontracts.Alltheotherremainingperformanceobligationsare expected to be recognised within one year.

23.

SEGMENT INFORMATION

Formanagementpurposes,theGroup’soperatingsegmentsareorganisedandmanagedseparatelyaccordingto thenatureofproductsandservicesprovided,witheachsegmentrepresentingastrategicbusinessunitthat offers different products.

Themanufacturing,packagingandbrewingsegmentisadiversifiedsupplierofbeverage,glass,chemicalsand paintproducts.Theautomotive,tradinganddistributionsegmentprovidesservicesinpassengervehicles,spare partsandhousehold/consumerproducts.Theinsuranceandfinancialservicessegmentprovidesservices relatingtolifeandgeneralinsurance,assetfinancingandmerchantbanking.Themedia,retail,servicesand parentcompanysegmentincludesprint,radio,television,retail,shippingandcorporateservices.Transfer pricesamongstoperatingsegmentsaresetonanarm’slengthbasisundernormalcommercialtermsand conditions,similartotransactionswithunrelatedthirdparties.Segmentrevenue,expensesandresultsinclude transfers amongst operating segments. Those transfers are eliminated upon consolidation.

TheGroup’sExecutiveCommitteemonitorstheoperatingresultofitsbusinessunitsandoperatingsegments for the purpose of making decisions about resource allocations and performance assessments.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

ANSA

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars)

(Continued)

McAL LIMITED AND ITS SUBSIDIARIES 23. SEGMENT INFORMATION (continued)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

16.

STATED CAPITAL AND OTHER RESERVES (continued)

Other reserves

Attributable to equity holders of the Parent

Balance, 1 January 2018

Total other comprehensive income for the year Transfers and other movements

Balance, 31 December 2018

Total other comprehensive income for the year Transfers and other movements

Balance, 31 December 2019

Nature and purpose of other reserves

Statutory reserve fund

226,00363,2216,29049,922345,436 –––646646 14,1313,3188,56677626,791 240,13466,53914,85651,345372,874 –––(8,315)(8,315) 15,890–590(2,516)13,964 256,02466,53915,44640,514378,523

TheFinancialInstitutionsActintherespectivejurisdictionoftheGroup’sMerchantBankingsubsidiaries, requiresthatnotlessthan10%ofthenetprofitoftheBankafterdeductionoftaxesineachyearbe transferredtoastatutoryreservefunduntilthebalancestandingtothecreditofthisreserveisequaltothe paid up capital of the Merchant Bank.

Statutory surplus reserve

AsrequiredbySection171oftheInsuranceAct1980ofTrinidadandTobagoatleast25%oftheInsurance subsidiary’sprofitfromgeneralinsurancebusiness,fortheprecedingyearistobeappropriatedtowardsa statutorysurplusreserveuntilsuchsurplusequalsorexceedsthereservesinrespectofitsoutstanding unexpired policies. This reserve is not distributable.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

23.SEGMENT INFORMATION (continued)

Norevenuefromtransactionswithasingleexternalcustomerorcounterpartyamountedto10%or more of the Group’s total revenue in 2019 or 2018.

Geographical information

Trinidad & Tobago Barbados Other countries Total

Third party revenue

Non-current assets

4,920,1894,826,915 920,024852,931 753,222705,3836,593,4356,385,229 2,509,3002,205,277 365,589323,363 430,643469,6423,305,5322,998,282

OthercountriesincludeGrenada,Guyana,St.Lucia,St.KittsandNevis,JamaicaandtheUSA. The revenue information is based on the relevant subsidiaries’ principal place of business. Non-currentassetsincludeproperty,plantandequipment,investmentproperties,intangibleassets and investment in associates and joint venture interests.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

24. OPERATING PROFIT 2019

Net insurance revenue Revenue from contracts with customers - Sale of goods - Rendering of services

Total revenue from contracts with customers

Finance charges, loan fees and other interest income

Total revenue Cost of sales

Gross profit

Net gain on disposal of property, plant and equipment and investment securities Staff costs

Revenue 5,347,2325,380,823 658,339 467,885 6,005,5715,848,708 392,281353,265 195,583 183,256 6,593,435 6,385,229 (3,954,079) (3,895,596) 2,639,3562,489,633 Other income (see below) 355,526362,962 86,39928,836 (699,652)(688,503)

Credit loss expense on financial assets (see below) (52,231)(71,889)

Depreciation and amortisation (109,611)(107,820)

Depreciation on right-of-use-assets (Note 7) (34,524) –Administrative and distribution costs (748,272)(734,979) Other general costs (319,758) (221,972) Operating profit 1,117,233 1,056,268

Depreciationandamortisationincludedincostofsalesaboveamountsto$251,469(2018: $222,109).

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

24. OPERATING PROFIT (continued)

The components of other income are as follows:

25.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

26. TAXATION EXPENSE

Consolidated statement of income Current year provision 233,044290,564

Deferred tax expense (Note 11)

Income tax expense reported in the consolidated statement of income

Consolidated statement of comprehensive income

Deferred tax relating to items recognised in OCI during the year:

Income tax effect of re-measurement losses on defined benefit plans (Note 11)

Income tax credit on mark to market losses on investments at fair value through other comprehensive income

The provision for income tax is as follows:

Current year provision and green fund levy:

Other countries

Adjustments to prior year tax provisions:

Other countries

Deferred taxes:

Trinidad and Tobago

Other countries

(12,255) 5,562 (1,921)

Trinidad and Tobago (5,150)(1,050) (24,118) 427 (29,268) (623) 34,0314,198 (426) (19,852) 33,605 (15,654)

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

26. TAXATION EXPENSE (continued)

Thefollowingitemsrepresenttheprincipaldifferencesbetweenincometaxescomputedatthe aggregatestatutorytaxratesofalljurisdictionsandthetaxreportedintheconsolidatedstatementof income:

Taxes at aggregate statutory tax rates of all jurisdictions: Trinidad and Tobago Other countries

Adjustment to statutory tax rate (Note 11)

27. EARNINGS PER SHARE

Basicearningspershareiscomputedbyrelatingprofitattributabletoordinaryshareholdersofthe Parent(netofpreferencedividends)totheweightedaveragenumberofordinaryshareunits outstandingduringtheyear.Theweightedaveragenumberofshareshasbeenadjustedforthe removal of treasury shares.

Dilutedearningspershareiscomputedbyrelatingprofitattributabletoordinaryshareholdersofthe Parenttotheweightedaveragenumberofsharesoutstandingduringtheyearplustheweighted averagenumberofordinarysharesthatwouldbeissuedontheconversionofallpotentialdilutive ordinary shares into issued ordinary shares.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

Profit attributable to ordinary shareholders of the Parent (net of preference dividend) ($000’s)

Weighted average number of ordinary shares in issue (000’s) –

Effect of dilution of share options

Basic earnings per share ($ per share)

Diluted earnings per share ($ per share)

Weighted average number of ordinary shares in issue (000’s) –Diluted DIVIDENDS

6% Cumulative preference 2019: 30c Interim ordinary – paid (2018: 30c) 2018: 150c Final ordinary – paid (2017: 120c)

Duringtheyearended31December2019,aninterimdividendof30centsperordinaryshare (amountingto$52,859)wasdeclaredandpaid.The2018finalordinarydividendof150centsper ordinaryshare(amountingto$264,289)hasbeenincludedasachargeagainstretainedearningsin the current year.

Inaddition,afinaldividendwasnotdeclaredbytheDirectorssubsequenttoyearendorbeforeissue of these consolidated financial statements.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

29. SHARE BASED TRANSACTIONS

InaccordancewiththeOrdinaryResolutionapprovedbymembersintheGeneralMeetingdated19 May1988,6,000,000shareunitswereallocatedforshareoptionsunderthecontroloftheBoardof Directors.Ofthatnumber,4,688,305weregrantedandexercisedand9,285(2018:24,322)have beengrantedbutnotyetexercised.In2019,nooptionswereexercised(2018:nil).Thefollowing tablesummarisesthenumberandweightedaveragepriceofandmovementsinshareoptionsduring the period:

At 1 January Granted Expired

At 31 December

ShareoptionsaregrantedtoseniorexecutivesoftheGroup,andaresettledbycashconsideration. Theexercisepriceofthegrantedoptionsisequaltothemarketpriceofthesharesatthegrantdate. OptionsareconditionalontheExecutivesremainingintheCompany’semployforperiodsranging fromaminimumoftenmonthstosevenyearsafterthedateofissue.Thereafter,eligibleexecutives have one year within which to exercise the option.

ThetablebelowsummarisestheshareoptionsthathavebeengrantedtoExecutivesbuthavenot been exercised at year end:

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

29.SHARE BASED TRANSACTIONS (continued)

TheexpenseforshareoptionschargedwithinadministrativeexpensesfortheyearwasNil(2018: $19).

Thefairvalueoftheequitysettledshareoptionsgrantedwasestimatedusingthebinomialmodel. The following summarises the key inputs to the model:

Risk free rate

Dividend growth rate Volatility

Expectedvolatilitywasbasedontheamountbywhichthesharepricewasexpectedtofluctuate during the period and has not changed from year.

30.CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS

(i)

(ii) (iii)

Guarantees, bills discounted, performance and customs bonds, acceptances and other contingencies Litigation

Intheordinarycourseofbusiness,certainsubsidiariesbecamedefendantsinvariouslegal claimsandproceedings.Provisionshavebeenestablishedwherenecessarybasedonthe professional advice received.

Capital commitments

Contracts for capital expenditure and other commitments not accounted for in these consolidated financial statements

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

31.

FAIR VALUES

WiththeexceptionofinsurancecontractswhicharespecificallyexcludedunderIFRS7,the estimatedfairvaluesofcertainfinancialinstrumentshavebeendeterminedusingavailablemarket informationorotherappropriatevaluationmethodologiesthatrequirejudgmentininterpreting marketdataanddevelopingestimates.Consequently,theestimatesmadedonotnecessarilyreflect theamountsthattheGroupcouldrealiseinacurrentmarketexchange.Theuseofdifferent assumptions and/or different methodologies may have a material effect on the fair values estimated.

The fair value information is based on information available to management as at the dates presented. Althoughmanagementisnotawareofanyfactorsthatwouldsignificantlyaffectthefairvalue amounts,suchamountshavenotbeencomprehensivelyrevaluedforthepurposesofthese consolidatedfinancialstatementsand,thereforethecurrentestimatesofthefairvaluemaybe significantly different from the amounts presented herein.

(i) (ii)

Short-term financial assets and liabilities

Thecarryingamountsofshort-termfinancialassetsandliabilitiescomprisingtheGroup’scash andshort-termdeposits,fixeddeposits,short-termborrowings,thecurrentportionofcustomers’ depositsandotherfundinginstruments,currentportionofmediumandlongtermnotes,trade andotherreceivablesandtradeandotherpayablesareareasonableestimateoftheirfairvalues because of the short maturity of these instruments.

Investment securities

Thefairvalueoftradinginvestmentsisbasedonmarketquotations,whenavailable.When marketquotationsarenotreadilyavailable,fairvaluesarebasedondiscountedcashflowsor estimatedusingquotedmarketpricesofsimilarinvestments.Intheabsenceofamarketvalue, discountedcashflowswillapproximatefairvalue.Thisprocessreliesonavailablemarketdata togenerateayieldcurveforeachcountryinwhichvaluationswereundertaken,using interpolated results where there were no market observable rates.

Inpricingcallablebonds,whereinformationisavailable,thepriceofacallablebondis determinedasatthecalldateusingtheYieldtoWorst.Forbondswithirregularcashflows (sinkingfunds,capitalisationofinterest,moratoria,amortisationsorballoonpayments),a processofiterationusingtheInternalRateofReturnisusedtoarriveatbondvalues.Yieldson alltax-freebondsaregrossed-uptocorrespondtosimilartaxablebondsattheprevailingrateof corporation tax.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

31. (iii)

FAIR VALUES

(continued)

Loans and advances

Theestimatedfairvalueforperformingloansiscomputedasthefuturecashflowsdiscountedat theyieldtomaturitybasedonthecarryingvaluesattheinherentratesofinterestintheportfolio asthoseratesapproximatemarketconditions.Whendiscounted,thecashflowvaluesare substantially equal to the carrying value.

Medium and long term notes

(iv) (v) Carrying amounts and fair values

TheGroupvaluesthedebtandassetbackedsecuritiesusingvaluationmodelswhichuse discounted cash flow analysis which incorporates either only observable data or both observable andnon-observabledata.Observableinputsincludeassumptionsregardingcurrentratesof interestandrealestateprices;unobservableinputsincludeassumptionsregardingexpected future default rates, prepayment rates and liquidity discounts.

ThefollowingtablesummarisesthecarryingamountsandthefairvaluesoftheGroup’s financial assets and liabilities:

Forallotherfinancialassetsandliabilities,thecarryingvalueisconsideredareasonable approximation of fair value.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

31.

FAIR VALUES

(continued)

Lease liabilities (continued)

(vi) Determination of fair value and fair value hierarchies

TheGroupusesthefollowinghierarchyfordetermininganddisclosingthefairvalueof financial instruments by valuation techniques. Refer also to Note 2 (xvii).

Level 1

IncludedintheLevel1categoryarefinancialassetsandliabilitiesthataremeasuredinwhole orinpartbyreferencetopublishedquotesinanactivemarket.Afinancialinstrumentis regardedasquotedinanactivemarketifquotedpricesarereadilyandregularlyavailablefrom anexchange,dealer,broker,industrygroup,pricingserviceorregulatoryagencyandthose prices represent actual and regularly occurring market transactions on an arm’s length basis.

Level 2

IncludedintheLevel2categoryarefinancialassetsandliabilitiesthataremeasuredusinga valuationtechniquebasedonassumptionsthataresupportedbypricesfromobservablecurrent market transactions and for which pricing is obtained via pricing services, but where prices have notbeendeterminedinanactivemarket.Thisincludesfinancialassetswithfairvaluesbasedon brokerquotes,investmentsinprivateequityfundswithfairvaluesobtainedviafundmanagers andassetsthatarevaluedusingtheGroup’sownmodelswherebythemajorityofassumptions are market observable.

Level 3

IncludedintheLevel3categoryarefinancialassetsandliabilitiesthatarenotquotedasthere arenoactivemarketstodetermineaprice.Thesefinancialinstrumentsareheldatcost,being thefairvalueoftheconsiderationpaidfortheacquisitionoftheinvestment,andareregularly assessed for impairment.

Quantitativedisclosuresfairvaluemeasurementhierarchyforassetsasat31December 2019:

Investment securities designated at FVSI

State owned company securities

Corporate bonds and debentures

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

31.

Description of significant unobservable inputs to valuation: FAIR VALUES (continued)

(vi) Determination of fair value and fair value hierarchies (continued)

Quantitativedisclosuresfairvaluemeasurementhierarchyforassetsasat31December 2019: (continued)

Investment securities designated at amortised cost for which fair values are disclosed

Investment securities measured at Fair Value through OCI

All other financial instruments are classified as Level 2.

Sensitivity of the input to fair value

2% increase/(decrease) in the rate of return would result in decrease/(increase) in fair value by $15,632/($5,065)

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

31. FAIR VALUES (continued) (vi)

Determination of fair value and fair value hierarchies (continued)

Transfers between Level 1 and Level 2

AteachreportingdatetheGroupassessesthefairvaluehierarchyofitsfinancial instruments.Atransferbetweenlevelswilloccurwhenafinancialinstrumentnolonger meetsthecriteriainwhichthefinancialinstrumentisclassified.Therewerenotransfers between Level 1 and Level 2 in 2019 or 2018.

Quantitativedisclosuresfairvaluemeasurementhierarchyforassetsasat31 December 2018:

Investment securities designated at FVSI

State owned company securities

Corporate bonds and debentures

Investment securities at amortised cost for which fair values are disclosed

State owned company securities

Corporate bonds and debentures

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

31. FAIR VALUES (continued) (vi)

Determination of fair value and fair value hierarchies (continued)

Quantitativedisclosuresfairvaluemeasurementhierarchyforassetsasat31 December 2018: (continued)

Investment securities measured at Fair Value through OCI Government bonds State owned company securities

Corporate bonds and debentures

All other financial instruments are classified as Level 2.

Description of significant unobservable inputs to valuation:

Valuation technique

Discounted cash flows

Sensitivity of the input to fair value

2% increase/(decrease) in the rate of return would result in decrease/(increase) in fair value by $11,624/($1,951)

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

31. FAIR VALUES (continued) (vi)

Determination of fair value and fair value hierarchies (continued)

All other financial instruments are classified as Level 2.

Movements in Level 3 financial instruments measured at fair value

Balance at 1 January Gains recognised Purchases

Transfers into/(out of) Level 3 Disposals

32. RISK MANAGEMENT

Introduction

RiskisinherentintheGroup'sactivitiesbutitismanagedthroughaprocessofongoing identification,measurementandmonitoring,subjecttorisklimitsandothercontrols.Thisprocessof riskmanagementiscriticaltotheGroup'scontinuingprofitabilityandeachindividualwithinthe Groupisaccountablefortheriskexposuresrelatingtotheirresponsibilities.TheGroupisexposed to credit risk, liquidity risk and market risk.

Board of Directors

TheBoardofDirectorsoftheGroupisresponsiblefortheoverallriskmanagementapproachand forapprovingtheriskstrategies,principles,policiesandprocedures.Daytodayadherencetorisk principlesiscarriedoutbytheexecutivemanagementoftheGroupincompliancewiththepolicies approved by the Board of Directors.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

32.

RISK MANAGEMENT (continued)

Treasury management

The Group’s Head Office employs a Treasury function which is responsible for managing the assets, liabilitiesandtheoverallfinancialstructureoftheGroup.TheTreasuryfunctionisalsoprimarily responsible for the funding and liquidity risks of the Group.

Concentrations of risk

Concentrationsarisewhenanumberofcounterpartiesareengagedinsimilarbusinessactivities,or activitiesinthesamegeographicalregion,orhaveeconomicfeaturesthatwouldcausetheirability tomeetcontractualobligationstobesimilarlyaffectedbychangesineconomic,politicalorother conditions.ConcentrationsindicatetherelativesensitivityoftheGroup’sresultstodevelopments affectingaparticularindustry.Inordertoavoidexcessiveconcentrationsofrisk,theGroup’s proceduresincludespecificmonitoringcontrolstofocusonthemaintenanceofadiversified portfolio.

Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows orthefairvaluesoffinancialinstruments.TheGroupmanagesitsinterestrateexposurebyoffering fixedratesonitsdepositsovertherespectiveterm.TheGroup’slong-termdebtandborrowings consistprimarilyoffixedinterestrateloans.Onthelendingsidehirepurchaseloansaregrantedat fixedratesoverspecifiedperiods.Astheinterestratesonbothdepositsandloansremainfixedover their lives, the risk of fluctuations in market conditions is mitigated.

Cashflowinterestrateriskistheriskthatthefuturecashflowsofafinancialinstrumentwill fluctuatebecauseofchangesinmarketinterestrates.Fairvalueinterestrateriskistheriskthatthe valueofafinancialinstrumentwillfluctuatebecauseofchangesinmarketinterestrates.TheGroup takesonexposuretotheeffectsoffluctuationsintheprevailinglevelsofmarketinterestrateson bothitsfairvalueandcashflowrisks.Interestmarginsmayincreaseasaresultofsuchchangesbut mayreducelossesintheeventthatunexpectedmovementsarise.TheBoardsetslimitsonthelevel ofmismatchofinterestratere-pricingthatmaybeundertaken,whichismonitoreddailybythe GroupTreasuryDepartment.TheGrouphasassesseditsfinancialassetsandliabilitiestodetermine theimpactofachangeininterestratesby100basispoints,andhasconcludedthatthischangewill notbematerialtotheconsolidatedstatementofincomeorconsolidatedstatementofchangesin equity of the Group.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

32. RISK MANAGEMENT (continued)

Currency risk

Currencyriskistheriskthatthevalueofafinancialinstrumentwillfluctuateduetochangesin foreignexchangerates.Suchexposurearisesfromsalesorpurchasesbyanoperatingunitin currenciesotherthantheunit’sfunctionalcurrency.Managementmonitorsitsexposuretoforeign currencyfluctuationsandemploysappropriatestrategiestomitigateanypotentiallosses.The aggregate value of financial assets and liabilities by reporting currency are as follows:

ANSA McAL LIMITED AND ITS SUBSIDIARIES

Annual Report Financials 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

16.

32. RISK MANAGEMENT (continued) Currency risk (continued) Year

STATED CAPITAL AND OTHER RESERVES (continued)

Other reserves

Balance, 1 January 2018

Total other comprehensive income for the year Transfers and other movements

Balance, 31 December 2018

Total other comprehensive income for the year Transfers and other movements

Balance, 31 December 2019

Nature and purpose of other reserves

Statutory reserve fund

Attributable to equity holders of the Parent

Statutory Statutory General Foreign reserve surplus loan loss currency fund reserve reserve & other Total 226,00363,2216,29049,922345,436 –––646646 14,1313,3188,56677626,791 240,13466,53914,85651,345372,874 –––(8,315)(8,315) 15,890–590(2,516)13,964 256,02466,53915,44640,514378,523

TheFinancialInstitutionsActintherespectivejurisdictionoftheGroup’sMerchantBankingsubsidiaries, requiresthatnotlessthan10%ofthenetprofitoftheBankafterdeductionoftaxesineachyearbe transferredtoastatutoryreservefunduntilthebalancestandingtothecreditofthisreserveisequaltothe paid up capital of the Merchant Bank.

Statutory surplus reserve

AsrequiredbySection171oftheInsuranceAct1980ofTrinidadandTobagoatleast25%oftheInsurance subsidiary’sprofitfromgeneralinsurancebusiness,fortheprecedingyearistobeappropriatedtowardsa statutorysurplusreserveuntilsuchsurplusequalsorexceedsthereservesinrespectofitsoutstanding unexpired policies. This reserve is not distributable.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued)

32. RISK MANAGEMENT (continued) Currency risk (continued)

STATED CAPITAL AND OTHER RESERVES (continued)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in Thousands of Trinidad and Tobago dollars) (Continued) 16.

Other reserves

Year ended 31 December 2018

Attributable to equity holders of the Parent

Balance, 1 January 2018

Total other comprehensive income for the year Transfers and other movements

Balance, 31 December 2018

Total other comprehensive income for the year Transfers and other movements

Balance, 31 December 2019

Nature and purpose of other reserves

Statutory reserve fund

TheFinancialInstitutionsActintherespectivejurisdictionoftheGroup’sMerchantBankingsubsidiaries, requiresthatnotlessthan10%ofthenetprofitoftheBankafterdeductionoftaxesineachyearbe transferredtoastatutoryreservefunduntilthebalancestandingtothecreditofthisreserveisequaltothe paid up capital of the Merchant Bank.

Statutory surplus reserve

AsrequiredbySection171oftheInsuranceAct1980ofTrinidadandTobagoatleast25%oftheInsurance subsidiary’sprofitfromgeneralinsurancebusiness,fortheprecedingyearistobeappropriatedtowardsa statutorysurplusreserveuntilsuchsurplusequalsorexceedsthereservesinrespectofitsoutstanding unexpired policies. This reserve is not distributable.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

32. RISK MANAGEMENT (continued)

Credit risk management

Creditriskistheriskthatacounterpartywillnotmeetitsobligationsunderafinancialinstrument orcustomercontract,leadingtoafinancialloss.TheGroupisexposedtocreditriskfromits operatingactivities(primarilytradereceivables)andfromitsfinancingactivities,including depositswithbanksandfinancialinstitutions,foreignexchangetransactionsandotherfinancial instruments.

Trade receivables and contract assets

CustomercreditriskismanagedbyeachbusinessunitsubjecttotheGroup’sestablishedpolicy, proceduresandcontrolrelatingtocustomercreditriskmanagement.Creditqualityofacustomeris assessedbasedonanextensivecreditratingscorecardandindividualcreditlimitsaredefinedin accordancewiththisassessment.Outstandingcustomerreceivablesandcontractassetsare regularlymonitoredandanyshipmentstomajorcustomersaregenerallycoveredbylettersof creditorotherformsofcreditinsuranceobtainedfromreputablebanksandotherfinancial institutions.

Animpairmentanalysisisperformedateachreportingdateusingaprovisionmatrixtomeasure expectedcreditlosses.Theprovisionratesarebasedondayspastdueforgroupingsofvarious customersegmentswithsimilarlosspatterns(i.e.,bygeographicalregion,producttype,customer typeandrating,andcoveragebylettersofcreditorotherformsofcreditinsurance).The calculationreflectstheprobability-weightedoutcome,thetimevalueofmoneyandreasonableand supportableinformationthatisavailableatthereportingdateaboutpastevents,currentconditions andforecastsoffutureeconomicconditions.Generally,tradereceivablesarewritten-offifpastdue formorethansixmonthsalthoughtheycontinuetobesubjecttoenforcementactivity.The maximumexposuretocreditriskatthereportingdateisthecarryingvalueofeachclassof financialassetsdisclosedbelow.TheGroupevaluatestheconcentrationofriskwithrespectto tradereceivablesandcontractassetsaslow,asitscustomersarelocatedinseveraljurisdictions and industries.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

32. RISK MANAGEMENT (continued)

Credit risk management (continued)

SetoutbelowistheinformationaboutthecreditriskexposureontheGroup’stradereceivables and contract assets using a provision matrix:

Trade Receivables - as at 31 December 2019

Expected credit loss rate

Estimated total gross carrying amount at default

Expected

Trade Receivables - as at 31 December 2018

Expected credit loss rate

Estimated total gross carrying amount at default

Expected

Impairment assessment

ThereferencesbelowshowwheretheGroup’simpairmentassessmentandmeasurementapproach issetoutinthisreport.ItshouldbereadinconjunctionwiththeSummaryofsignificantaccounting policies.

Definition of default and cure

TheGroupconsidersafinancialinstrumentdefaultedandthereforeStage3(credit-impaired)for ECLcalculationsinallcaseswhentheborrowerbecomes90dayspastdueonitscontractual payments.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

32. RISK MANAGEMENT (continued)

Credit risk management (continued)

Definition of default and cure (continued)

Asapartofaqualitativeassessmentofwhetheracustomerisindefault,theGroupalsoconsiders avarietyofinstancesthatmayindicateunlikelinesstopay.Whensucheventsoccur,theGroup carefullyconsiderswhethertheeventshouldresultintreatingthecustomerasdefaultedand thereforeassessedasStage3forECLcalculationsorwhetherStage2isappropriate.Suchevents include:

•

•

•

•

•

•

•

Internal rating of the borrower indicating default or near-default

The borrower requesting emergency funding from the Group

The borrower having past due liabilities to public creditors or employees

A material decrease in the borrower’s turnover or the loss of a major customer

A covenant breach not waived by the Group Amaterialdecreaseintheunderlyingcollateralvaluewheretherecoveryoftheloanis expected from the sale of the collateral

• Thedebtor(oranylegalentitywithinthedebtor’sgroup)filingforbankruptcy application/protection

Debtor’slisteddebtorequitysuspendedattheprimaryexchangebecauseofrumoursor facts about financial difficulties

ItistheGroup’spolicytoconsiderafinancialinstrumentas‘cured’andthereforere-classifiedout ofStage3whennoneofthedefaultcriteriahavebeenpresentforatleastsixconsecutivemonths. ThedecisionwhethertoclassifyanassetasStage2orStage1oncecureddependsontheupdated creditgrade,atthetimeofthecure,andwhetherthisindicatestherehasbeenasignificantincrease in credit risk compared to initial recognition.

Probability of default (PD):

ThePDisanestimateofthelikelihoodofdefaultoveragiventimehorizon.Adefaultmayonly happenatacertaintimeovertheassessedperiod,ifthefacilityhasnotbeenpreviously derecognised and is still in the portfolio.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

32. RISK MANAGEMENT (continued)

Credit risk management (continued)

Exposure at default

TheEADisanestimateoftheexposureatafuturedefaultdate,takingintoaccountexpected changesintheexposureafterthereportingdate,includingrepaymentsofprincipalandinterest, whetherscheduledbycontractorotherwise,expecteddrawdownsoncommittedfacilities,and accrued interest from missed payments.

TheEADrepresentsthegrosscarryingamountofthefinancialinstrumentssubjecttothe impairmentcalculation,addressingboththeclient'sabilitytoincreaseitsexposurewhile approaching default and potential early repayments too.

Loss Given Default

TheLGDisanestimateofthelossarisinginthecasewhereadefaultoccursatagiventime.Itis basedonthedifferencebetweenthecontractualcashflowsdueandthosethatthelenderwould expecttoreceive,includingfromtherealisationofanycollateral.Itisusuallyexpressedasa percentage of the EAD.

Significant increase in credit risk

TheGroupcontinuouslymonitorsallassetssubjecttoECLs.Inordertodeterminewhetheran instrumentoraportfolioofinstrumentsissubjectto12mECLorLTECL,theGroupassesses whether there has been a significant increase in credit risk since initial recognition.

TheGroupalsoappliesasecondaryqualitativemethodfortriggeringasignificantincreasein creditriskforanasset,suchasmovingacustomer/facility/investmenttothewatchlisttononinvestmentgrade,ortheaccountbecomingforborne.Regardlessofthechangeincreditgrades,if contractualpaymentsaremorethan30dayspastdue,thecreditriskisdeemedtohaveincreased significantly since initial recognition.

Other considerations

Forinvestments,theGroupprimarilyreliesoninternationalexternalcreditratingagenciesto providedataforPDsandLGDs.PDsandLGDsforotherfinancialassetssuchasloansand advanceswerederivedbasedonhistoricallosstrendsintheportfolios,recoveries,typical collateral and other borrower characteristics.

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32. RISK MANAGEMENT (continued)

Credit risk management (continued)

Gross maximum exposure to credit risk

Thefollowingtableshowsthemaximumexposuretocreditriskwhichrepresentsaworstcase scenarioofcreditriskexposure,withouttakingaccountofanycollateralheldorothercredit enhancementsattached.Theamountandtypeofcollateralrequireddependsonanassessmentof thecreditriskofthecounterparty.Guidelinesareimplementedregardingtheacceptabilityoftypes of collateral and valuation parameters.

Trade and other receivables

Cash and short term deposits (excluding Central Bank Reserve) Loans, advances and other assets

1,142,9271,167,268 1,885,1561,703,048 2,026,6752,205,040 4,072,722 4,121,836

9,127,4809,197,192

9,349,615 9,363,585

The main types of collateral obtained are as follows:

Hirepurchaseandleases–chargesoverautovehicles,industrial,householdandgeneral equipment.

Reverse repurchase transactions – cash and securities.

• • • • Investment securities Corporateloans–chargesoverrealestateproperty,industrialequipment,inventoryand trade receivables.

Mortgage loans – mortgages over commercial and residential properties.

Cash and short-term deposits

ThesefundsareplacedwithhighlyratedlocalbanksandCentralBankswithintheCaribbean regionwheretheGroupoperates.Inadditioncashisheldbyinternationalfinancialinstitutions withwhichtheGrouphasrelationshipsascustodiansorfundmanagers.Allcustodiansandfund managersarehighlyratedbyMoody’sandhavebeenclassifiedwitha'stable'outlook. Management therefore considers the risk of default of these counterparties to be very low.

Annual Report Financials 2019

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

32. RISK MANAGEMENT (continued)

Credit risk management (continued)

Loans and advances

Forthemerchantbankingportfoliowithinloansandadvances,giventhelimitedhistoricaldata,the PDhistoryoftheleasedassetsportfoliowasusedasastartingpointofthecalculation.Forcertain Stage2loans,wheremanagementconsideredtheentity'sfinancialpositionorindustrytopresent higherrisks,thePDswerejudgementallyadjustedtoreflecttheincreasedrisk.LGDswere assessedonanindividualloanbyloanbasisduetotheportfoliobeingnon-homogeneous.Thiswas basedonthesecurityheld,factoringintheliquidity,currentconditionandestimatedvalueofthe collateral. EAD equals the loan balance outstanding plus accrued interest.

Other

financial assets

Formortgageloans,policyloans,premiumreceivablesandreinsurancereceivables,asimplified ECLapproachwasapplied.Historicallossesontheserespectiveportfolioswerecalculatedand appliedtothecurrentpositions,withmanagementapplyingjudgementaloverlaysbasedon expectations as required.

Investment securities

PDsandLGDsfortradedinstrumentswerebasedontheglobalcreditratingsassignedtothe instrumentsorthecountryforsovereignexposures.PDsandLGDsfornon-tradedinstrumentsas wellaslocaldebtinstrumentswerebasedonthreenotchesbelowthecreditratingofthesovereign inwhichtheinstrumentisissuedoroncompanyratingswheretheyexisted.EADequalsthe amortised security balance plus accrued interest.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

32. RISK MANAGEMENT (continued)

Credit risk management (continued)

and other assets

Analysis of gross carrying amount and the corresponding ECLs are as follows:

1

As at 31 December 2019 As at 31 December 2018

and

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

32. RISK MANAGEMENT (continued)

Credit risk management (continued)

Analysis of gross carrying amount and the corresponding ECLs are as follows: (continued)

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

32. RISK MANAGEMENT (continued)

Credit risk management (continued)

Analysis of gross carrying amount and the corresponding ECLs are as follows: (continued)

at 31 December 2019

3

at 31 December 2018

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

32. RISK MANAGEMENT (continued)

Liquidity risk

LiquidityriskistheriskthattheGroupwillbeunabletomeetitspaymentobligationswhentheyfall dueundernormalandstresscircumstances.TheGroupmonitorsitsliquidityriskbyconsideringthe maturityofbothitsfinancialinvestmentsandfinancialassetsandprojectedcashflowsfrom operations.WherepossibletheGrouputilisessurplusinternalfundstoalargeextenttofinanceits operationsandongoingprojects.However,theGroupalsoutilisesavailablecreditfacilitiessuchas loans, overdrafts and other financing options where required.

ThetablebelowsummarisesthematurityprofileoftheGroup’sfinancialliabilitiesbasedon contractual payments.

Year ended 31 December 2019

Lease liabilities

Customers' deposits and other funding instruments

Medium and long term notes and other borrowings

Trade and other payables

Interest payable

Year ended 31 December 2018

Customers' deposits and other funding instruments

Medium and long term notes and other borrowings

Trade and other payables

Interest payable

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

32. RISK MANAGEMENT (continued)

Equitypriceriskistheriskthatthefairvaluesofequitieswilldecreaseastheresultofdecreasesin equityindicesandthevalueofindividualstocks.Thenon-tradingequitypriceriskexposurearises from the Group’s investment portfolio.

Theeffectonincomewillariseasaresultofthechangeinfairvalueofequityinstruments categorised as fair value through the statement of income.

Theeffectonincomeat31Decemberduetoareasonablypossiblechangeinequityindices,withall other variables held constant, is as follows:

33.

CAPITAL MANAGEMENT

TheprimaryobjectivesoftheGroup’scapitalmanagementpolicyaretoensurethattheGroup complieswithexternallyimposedcapitalrequirementsandthattheGroupmaintainsstrongcredit ratings and healthy capital ratios in order to support its business and to maximise shareholder value.

Whenmanagingcapital,whichisabroaderconceptthanthe‘equity’intheconsolidatedstatementof financial position, the objectives of the Group are:

Tocomplywiththecapitalrequirementssetbytheregulatorsofthemarketswheretheparent and its subsidiaries operate;

TosafeguardtheGroup’sabilitytocontinueasagoingconcernsothattheycancontinueto provide returns for shareholders and benefits for other stakeholders; and

To maintain a strong capital base to support the development of its business.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

33. CAPITAL MANAGEMENT (continued)

Capital adequacy and the use of regulatory capital are monitored monthly by Management, employing techniques based on the guidelines developed and implemented by the Central Bank of Trinidad & Tobago for supervisory purposes. The required information is filed with the Central Bank on a monthly basis.

The Central Bank of Trinidad and Tobago requires each bank or banking group to: (a) hold the minimum level of the regulatory capital of $15 million, and (b) maintain a ratio of total regulatory capital to the risk-weighted asset (the ‘Basel ratio’) at or above the internationally agreed minimum of 8%.

In each country in which the Group’s insurance subsidiaries operates, the local insurance regulator indicates the required minimum amount and type of capital that must be held by each of the subsidiaries in addition to their insurance liabilities. The Group is subject to the insurance solvency regulations in all the territories in which it issues insurance contracts. The minimum required capital must be maintained at all times throughout the year.

For 2019 and 2018, the Group complied with all of the externally imposed capital requirements to which they are subject at the date of this report.

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

34.RELATED

TheconsolidatedfinancialstatementsincludethefinancialstatementsofANSAMcALLimitedand the consolidated subsidiaries listed as follows:

Country of incorporation/ principal place of business

Alstons Limited Republic of Trinidad and Tobago

Alstons Marketing Company

Limited

Republic of Trinidad and Tobago

Alstons Shipping LimitedRepublic of Trinidad and Tobago

Alstons Travel LimitedRepublic of Trinidad and Tobago

AMCL Holdings LimitedRepublic of Trinidad and Tobago

ANSA Automotive LimitedRepublic of Trinidad and Tobago

ANSA Coatings GroupRepublic of Trinidad and Tobago

ANSA Coatings International

Limited

ANSA Global Brands Limited St. Lucia

ANSA Merchant Bank GroupRepublic of Trinidad and Tobago

ANSA McAL (US) Inc.United States of America

ANSA McAL (Barbados) GroupBarbados

ANSA McAL Beverages (Barbados) Limited St. Lucia

ANSA McAL Chemicals Limited Republic of Trinidad and Tobago

ANSA McAL Enterprises LimitedRepublic of Trinidad and Tobago

ANSA McAL Trading (Guyana) Limited Guyana

Guardian Media Group Republic of Trinidad and Tobago

ANSA Re Limited St. Lucia

ANSA Technologies Limited Republic of Trinidad and Tobago

Carib Brewery (St Kitts & Nevis)

Limited St. Kitts & Nevis

Carib Glassworks LimitedRepublic of Trinidad and Tobago

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

34.

RELATED PARTY

DISCLOSURES

(continued)

Country of incorporation/ principal place of business

Caribbean Development Company Group Republic of Trinidad and Tobago

Caribbean Roof Tile Company

Limited

DCI Miami Inc.

Republic of Trinidad and Tobago

United States of America

Easi Industrial Supplies Limited Republic of Trinidad and Tobago

Grenada Breweries Limited Grenada

Indian River Beverage Corporation

Lewis Berger (Overseas)

Holdings Group

McEnearney Business Machines

United States of America

Limited Republic of Trinidad and Tobago

Promenade Development Limited Republic of Trinidad and Tobago

Sissons Paints Limited Republic of Trinidad and Tobago

Sissons Paints Grenada Limited Grenada

Standard Distributors Limited Republic of Trinidad and Tobago

Standard Distributors and Sales

Barbados Limited Barbados

Standard Equipment Limited Republic of Trinidad and Tobago

Tobago Marketing Company

Limited Republic of Trinidad and Tobago

Trinidad Aggregate Products

Limited

Republic of Trinidad and Tobago

Trinidad Match Limited Republic of Trinidad and Tobago

T/Wee Limited

Trident Insurance Company

Limited

Republic of Trinidad and Tobago

Barbados

Significant associates interests at 31 December are as follows:

Trinidad Lands Limited Republic of Trinidad and Tobago

Various interests held by ANSA McAL (Barbados) Limited

Various Caribbean islands and Barbados

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

34. Company

RELATED PARTY DISCLOSURES (continued)

Joint venture interests at 31 December are as follows:

Country of incorporation/ principal place of business

CCEF ANSA Renewable Energies Holdings LimitedBarbados

ANSA McAL Limited is the ultimate parent entity and the ultimate parent of the Group.

Thefollowingsummarisesthevalueofoutstandingbalances/transactionsbetweentheGroupand related parties for the relevant financial year:

Purchases

Sales to/from/AmountsAmounts Customer otherexpensesowed byowed to deposits Yearincome from withrelatedrelatedInvestmentsand other relatedrelatedpartiesparties /loans and funding partiesparties (Note 14)(Note 21) advancesinstruments

Associates:201929,75624,40230,19561

201821,77924,87252,9013,062

Joint venture in which the Parent is a venturer

Other related

2019 –11,9974,1231,084 –55,000 parties: 2018 –3,3442,673560 –55,000

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

34.

RELATED PARTY DISCLOSURES (continued)

Terms and conditions of transactions with related parties

Partiesareconsideredtoberelatedifonehastheabilitytocontrolorexercisesignificantinfluence overtheotherpartyinmakingfinancialoroperationaldecisions.Thesalestoandpurchasesfrom relatedpartiesaremadeatnormalcommercialtermsandmarketrates.Outstandingbalancesatthe year-endareunsecured,interestfreeandsettlementoccursincash.Therehavebeennoguarantees providedorreceivedforanyrelatedpartyreceivablesorpayables.Fortheyearended31December 2019,theGrouphasrecordedanimpairmentchargeinrespectofreceivablesrelatingtoamounts owed by related parties of $nil (2018: $518).

Terms and conditions of transactions with related parties

Compensation of key management personnel of the Group Keymanagementpersonnelarethosepersonshavingauthorityandresponsibilityforplanning, directing and controlling the activities of the Group.

Salaries and other short-term employee benefits

Contributions to defined contribution plans

Post-employment benefits

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

34.

RELATED PARTY DISCLOSURES (continued)

Terms and conditions of transactions with related parties (continued)

Directors’ interests in the Executive Share Option Plan OutstandingshareoptionsheldbyexecutivemembersoftheGrouptopurchaseordinaryshareshave the following maturity dates and exercise prices:

ASSETS PLEDGED

Cash and short term deposits Loans and advances

Bonds and debentures Equities Real estate

20192018 113,817106,086 194,708185,750 1,392,9271,251,318 434,064387,422 13,000 30,000 2,148,516 1,960,576

UndertheprovisionsoftheInsuranceAct,1980theGrouphasestablishedandmaintainsastatutory fundandastatutorydeposittowhichtheassetsarepledgedandheldtotheorderoftheInspectorof Financial Institutions.

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

36.

MATERIAL PARTLY OWNED SUBSIDIARIES

Financial information of subsidiaries that have material non-controlling interests is provided below:

Proportion of equity interest held by non-controlling interests:

Country of Incorporation

Company Name and Operation

ANSA Merchant Bank Group Republic of Trinidad and Tobago

Guardian Media Group Republic of Trinidad and Tobago

Other Several territories

OtherincludesCaribbeanDevelopmentCompanyLimited,CaribBreweryLimited,LewisBerger OverseasHoldingsLimited,CaribBrewery(St.Kitts&Nevis)Limited,GrenadaBreweriesLimited, whichoperateinvariousterritoriesincludingTrinidad&Tobago,Jamaica,Barbados,St.Kitts& Nevis and Grenada.

Accumulated balances of material non-controlling interests:

ANSA Merchant Bank Group

Guardian Media Group

Other

Profit allocated to material non-controlling interests:

ANSA Merchant Bank Group

Guardian Media Group

Other

Thesummarisedfinancialinformationofthesesubsidiariesisprovidedbelow.Thisinformationis based on amounts before inter-company eliminations:

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

36. MATERIAL PARTLY OWNED SUBSIDIARIES (continued)

Summarised statement of income:

Thesummarisedfinancialinformationofthesesubsidiariesisprovidedbelow.Thisinformationis based on amounts before inter-company eliminations: Other

ANSA MerchantGuardian Media Bank Group Group

Revenues

Cost of sales

Administrative expenses

Other expensesnet Finance costs

Profit/(loss) before taxation

Taxation

Profit/(loss) after tax

Total comprehensive income/(loss)

Attributable to noncontrolling interests

Dividends paid to non-controlling interests

1,105,870925,460120,342128,2561,928,6452,069,324 ––(67,575)(73,871)(1,133,486)(1,189,742) (72,476)(45,329)(43,808)(40,397)(137,261)(218,939) (676,010)(619,537)(14,801)(14,335)(233,943)(211,856) –

(12,583)

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

36.

MATERIAL PARTLY OWNED SUBSIDIARIES (continued)

Summarised statement of financial position:

ANSA Merchant Guardian Media Bank Group Group

Non-current assets

Current assets

Non-current liabilities

Current liabilities

Total equity

Attributable to: Equity holders of parent Non-controlling interests Operating Investing Financing

Summarised cash flow information:

Net (decrease)/ increase in cash and cash equivalents

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

37.

BUSINESS COMBINATIONS

Acquisitions in 2019

Acquisition of Trinidad Aggregate Products Limited (TAP)

On 26 March 2019, the Group acquired 97.14% of the voting shares of Trinidad Aggregate Products Limited(TAP),anon-listedcompanybasedinTrinidadandTobagoandspecialisingin manufacturing of clay building products.

The Group has elected to measure the non-controlling interests in the acquiree at fair value.

Assets acquired and liabilities assumed

The fair values of the identifiable assets and liabilities of ($8,269) as at the date of acquisition were:

Total identifiable net liabilities at fair value

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

37.

BUSINESS COMBINATIONS (continued)

Acquisitions in 2019 (continued)

Acquisition of additional interest in Caribbean Roof Tile Company Limited

On26June2019,theGroupacquiredanadditional50%interestinthevotingsharesofitsjoint ventureCaribbeanRoofTileCompanyLimited,acompanyincorporatedintheRepublicofTrinidad andTobago,increasingitsownershipinterestto100%.TheGrouphasobtainedcontrol.Cash consideration of US $1 million was paid to the party to the joint venture.

Assets acquired and liabilities assumed

The fair values of the identifiable assets and liabilities of $14,000 as at the date of acquisition were:

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

37.

BUSINESS COMBINATIONS (continued)

Acquisition of Trident Insurance Company Limited On16December2019,theGroupacquired100%ofthevotingsharesofTridentInsurance CompanyLimited,anon-listedcompanybasedinBarbadosandspecialisingingeneralinsurance.

Provisional accounting was applied for the acquisition.

Assets acquired and liabilities assumed Thefairvaluesoftheidentifiableassetsandliabilitiesof$13,165ofTridentInsuranceCompany Limited as at the date of acquisition were:

Annual Report Financials 2019

ANSA McAL LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (Expressed in thousands of Trinidad and Tobago dollars) (Continued)

38. EVENTS AFTER THE REPORTING PERIOD

On11December2019,weenteredintoasharepurchaseagreementtoacquire100percentofthe totalissuedandoutstandingsharesheldintheBankofBarodaTrinidadandTobagoLimited.The acquisitionissubjecttoregulatoryapprovalsandthefulfilmentofspecificconditionsascontainedin thesharepurchaseagreement.Theacquisitioniscurrentlyexpectedtocloseinthesecondquarterof 2020.

On30January2020,theWorldHealthOrganizationdeclaredtheoutbreak,ofanovelstrainof coronavirus(“COVID-19”),toconstitutea“PublicHealthEmergencyofInternationalConcern.” Thisglobaloutbreakhasdisruptedsupplychainsacrossarangeofindustries.Theextentofthe impactofCOVID-19onouroperationalandfinancialperformancewilldependoncertain developments,includingthedurationandspreadoftheoutbreak,impactonourcustomers, employeesandvendorsallofwhichareuncertain.Therelatedfinancialimpactanddurationof which, cannot be reasonably estimated at this time.