“Strengthening Home Base & Building A Global Consumer Group”

Company Profile:

Stock Exchange: Jamaica and Trinidad & Tobago

Company: GraceKennedy Limited

2013 Rank: #4

Chairman: Gordon V. Shirley, OJ

Group Chief Executive Officer: Donald G. Wehby

Address: 73 Harbour Street, Kingston, Jamaica
Tel: 922-3440
Fax: 922-3664
Website: www.gracekennedy.com
www.gracefoods.com

GraceKennedy Limited is publicly listed on the Jamaica and Trinidad & Tobago Stock Exchanges. The Company was launched on February 14, 1922. GraceKennedy Limited is the parent company of a Group of subsidiaries operating mainly in the food and financial services industries. The Group’s operations are structured as follows:

• GraceKennedy Foods (GK Foods):
GKFoods is involved in the business of food manufacturing through the company’s factories as well as through external suppliers, the distribution of Grace and Grace-owned brands internationally and domestically and the operation of retail outlets through the Hi-Lo Supermarket chain in Jamaica. The Group also manufactures and distributes third party brands internationally and domestically. GK Foods operates primarily in Jamaica, the Caribbean, Central America, North America, Europe and Africa.

• GraceKennedy Financial Group (GKFG):
This comprises Commercial Banking, General Insurance, Insurance Brokerage,
Securities, Remittance, Cambio and Payment Services businesses. GKFG presently operates within the English speaking Caribbean.

• Hardware & Lumber Limited (H&L):
H&L is a publicly listed subsidiary on the Jamaica Stock Exchange engaged in the retailing and wholesaling of building material, home improvement supplies, household items and agricultural products. H&L operates within Jamaica with ten Rapid True Value locations and six Agro Grace Retail Centres located island wide. GraceKennedy owns 58.1% of the shares of H&L.

The following edited extract was taken from the company’s 2013 Annual Report to shareholders.

Due to the economic challenges facing Jamaica and the resultant National and Private Debt Exchange programmes in which our company participated, there was significant impact on GraceKennedy and on the local economy in general. A one-time loss of $293 million was recorded in the income statement arising from the exchange of instruments. Our Company decided that participation in both debt exchange programmes was in the best interest of our company and the right decision for Jamaica in the long-term.

Group revenues for 2013 were $67.3 billion, representing a 9.6% increase over the prior year. This revenue increase was accompanied by a 23.7% increase in pre-tax profits. In 2012 the corporate income tax rate for unregulated companies was reduced from 33 1/3% to 25% effective January 1, 2013. This resulted in a significantly lower tax charge in 2012 as a result of a one-off change in our deferred income tax. As a result of this one-off impact in 2012, despite the significant increase in pre-tax profits, 2013 net profits were flat when compared to 2012. Earnings per share declined by $0.76 to $9.66.

Total assets grew by 4.3% to total $108.6 billion for 2013. This growth was financed largely by an increase in total equity of 7.4% to total $34.2 billion. In keeping with our objective to improve shareholder returns, the total dividends paid in 2013 was $2.18 per share, compared to $2.00 in 2012, an increase of 9%.

The key areas of focus for our company during the year were strengthening our Jamaican businesses, growing our international footprint, specifically in the USA, Canada, the United Kingdom and our new markets in Western Africa and Continental Europe; improved capital management, and continued focus on our customers and our employees.

These coupled with GraceKennedy Group’s commitment to good corporate citizenship drove our activities during 2013.

We are excited about 2014 and launched the year under the theme “Investing for Growth, Delivering on our Promise.” We are focused on the growth of our international business, strengthening and maintaining our domestic businesses, improved efficiency and better capital management. We will be working assiduously towards creating the conditions that make those goals reality. We also aim to get closer to our customers and consumers across our various markets and serving them better. We have every confidence in our excellent team, and firmly believe that we have the right infrastructure, the appropriate risk mitigation and the strategies in place to achieve our goals. We thank you for your continued support on this journey. We sincerely appreciate it.BM
Gordon V. Shirley, OJ Chairman