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“Our result for 2016 reflect a comparatively good performance in what was and still is a tough trading environment. We have demonstrated over the years that your Group is resilient and that the conglomerate model works. The increased dividend signals our confidence in delivering growth.”

Report OF THE GROUP CHAIRMAN AND CHIEF EXECUTIVE

A. Norman Sabga, LLD (Hon.) UWI
Group Chairman and Chief Executive

2015 was an interesting and successful year for the Group. As usual there were challenges but we have come through this financial year stronger and with good momentum. Though the economic climate remains uncertain, your Group, with a solid 135 years behind us, will continue to expand our national and regional footprint and we will enhance our brand by focussing on improving our overall service delivery, promoting and recognising employee excellence, attracting top talent from across the region and the globe and harnessing relationships with key stakeholders.

In the past year, the Group benefited enormously from the trust and dedication that our stakeholders extended to each member company. In turn, the Group’s image of strength, diversification and stability, of a recognisable and tradition-rich identity, augured well for our individual companies. The good results that we are able to present to you, our shareholders, in this report, are in no small part a consequence of the passion that exists in the Group to drive excellence.

FINANCIAL OVERVIEW

I am pleased to report that in 2015 ANSA McAL has for a third consecutive year delivered profit before tax (PBT) above the billion dollar mark and with revenues of over $6 billion, the Group has fared well and maintained a positive trend amid a challenging economic environment. ANSA McAL, a home grown Caribbean conglomerate, has shown that we have over the years been able to produce acceptable results even during challenging periods. Your Group achieved earnings per share (EPS) of $4.45, an improvement of 12% over the prior period and continues to have a robust asset base of over $13 billion.

Our balance sheet is strong and we shall be able to leverage our assets to their fullest potential during this coming economic period which will be rich in opportunity for your Group. During fiscal year 2015, all segments performed well. Operating profit increased by 10%, while Group finance costs (excluding financial services where their core business is raising funds via different instruments and incurring the costs thereof) declined by 7% to $5.5 million. The Group has done well to decrease its leverage ratios and achieve a gearing ratio, excluding financial services, of just under 1%. Our growth and investment strategies moving forward are well supported by these enhanced financial metrics. Our talented team of executives has done a stellar job of maintaining our competitive edge and continue to develop and improve our processes for added value and sustained growth.

MANUFACTURING, PACKAGING & BREWING SEGMENT

The manufacturing, packaging and brewing segment contributed $505 million to profit before tax in 2015, employing over 1000 people. Through this Segment, the Group is a diversified supplier of beverages, glass, packaging, chemicals, matches and construction products.

MANUFACTURING SECTOR HEAD
Andy Mahadeo

Manufacturing
ABS was able to grow sales volumes in clay blocks by 30% in 2015 by leveraging our new kiln to produce a significantly higher quality block at a lower cost to the market. Our Engineering Services continue to grow by winning and delivering on key contracts for marquee projects.

ANSA McAL Chemicals, produced over 3 million litres per month of sodium hypochloride (bleach) as well as chlorine gas and caustic soda. Export sales of packaged bleach increased in 2015 by 16% over the 2014 results with plant production exceeding nameplate capacity. In 2016, the export focus will be on developing the Central American markets, Haiti and the Dominican Republic.

ANSA Coatings invested in expanding plant capacity by 25% in 2015, which will translate into higher regional exports. Sissons extended its product line to introduce Texcote paints which have higher heat reflective properties resulting in lower wall surface temperatures and reduced cooling costs.

Trinidad Match, has successfully expanded the distribution of its products most recently to Puerto Rico and continued to lay the groundwork in 2015 to enter Central American and other non-CARICOM markets.

ANSA Polymer, invested in new blow moulding equipment, which will improve plant output and product quality. In 2016 there will be further investments in equipment to ensure the ability
to remain competitive and grow market share.

BEVERAGE SECTOR HEAD
Andrew N. Sabga

Beverage
2015 was a good year for the Beverage Sector, as all companies performed better than the previous year. Our brands continue to show positive growth throughout CARICOM.

Caribbean Development Co. Ltd./Carib Brewery Ltd. grew in all product categories (beer, stouts and soft drinks). During the course of the year we launched Heineken Light and Pola Light beers as well as Carib Radler, a refreshing ready-to-drink beverage made from beer and natural lemon juice. All three brands have exceeded sales expectations and have been well accepted
by the Trinidad and Tobago consumer.

Grenada Breweries Limited performed exceptionally well in 2015 with doubledigit growth in both sales and profitability. Performance was enhanced by exports to Trinidad showing that this company can benefit from its relationship with fellow Group companies. There were also increased sales to neighbouring islands within the OECS. All brands saw growth over the prior year. We are very optimistic for Grenada Breweries in 2016 as the Grenadian economy continues to recover and grow.

Carib Brewery (St. Kitts & Nevis) Limited had a record year in 2015 in both sales and profitability aided by exports to Trinidad and the continued growth of the St. Kitts and Nevis economy. We continue to build our brands within the OECS.

DCI Miami Inc., the importer of our beverage brands into the United States, achieved good results and was able to grow sales by 17% which resulted in significant PBT growth for the company.

Carib Glassworks Limited, has reinvested in a new state of the art furnace with the clear focus of rebuilding our exports within the Region. This is a challenging process as we strive to produce the highest quality product while still remaining competitive in a high cost market as Trinidad. However, we do believe that we will be able to regain market share.

AUTOMOTIVE, TRADING & DISTRIBUTION SEGMENT

AUTOMOTIVE SECTOR HEAD 
Jerome Borde

Automotive

The Group’s Automotive Sector achieved a significant milestone in the year under review. For the first time, it delivered revenue in excess of $1 billion dollars in our Trinidad and Tobago operations, even though the overall market remained flat compared to 2014. However, we were able to grow our market share with our quality automotive brands of Honda, Mitsubishi, Ford, BMW/Mini, Jaguar/Land Rover, New Holland, Hyster and UTILEV in Trinidad and Tobago, and in Barbados, Ford, Mazda, Kia, and BMW/Mini. Our dominance in the truck and bus market, leading with our Fuso brand, was maintained in 2015, and Honda is on a continuing growth path that is in part triggered by the Honda CNG offering.

The introduction of some very exciting models, make us approach 2016 with great optimism. To be better prepared for any adjustments in the economy, we recently established in 2016 a Rental operation to compete in a segment in which we had not previously participated. In February 2016, we also opened our new centre in Chaguanas, the fastest growing municipality in Trinidad and Tobago, mainly with the view to enhancing service levels for our customers. These two propositions combined with an increased focus on providing quality and efficient service to our  customers are expected to increase revenues for the Sector by as much as 10%.

As the Barbados economy recovers, our business there has also shown great strides and is poised for significant growth in 2016.

DISTRIBUTION SECTOR HEAD
José M. Nivet

Distribution

This Sector achieved double-digit growth over the prior year in terms of revenue and profitability. Improved performance in Barbados is especially encouraging against the challenging Barbados economy. Despite the decline of commodity prices we were able to still see growth in 2015. Our Distribution sector continues to attract new principals and exciting brands. We have invested in IT that will give sales staff an online Route Accounting link to their respective company, which will improve real-time information in their discussions with customers. We are introducing a new Warehouse Management System (WMS) which would considerably improve the logistical side of our distribution business and create a distinct competitive advantage.

INSURANCE & FINANCIAL SERVICES SEGMENT

The insurance and financial services segment provides services relating to life and general insurance, asset financing and merchant banking.

FINANCIAL SERVICES SECTOR HEAD
Chip Sa Gomes

Financial Services
The Sector increased its profit before tax to $285 million (2014: $272 million), attributable to the results of TATIL, Tatil Life and ANSA Merchant Bank Limited. Consolidated Finance Co. Limited incurred losses in 2015, mainly due to a failed commercial loan and the Mutual Fund segment suffered some unrealised losses on securities with energy and commodity exposure. ANSA Merchant Bank had another year of very commendable performance in capital markets, arranging and syndicating several billion-dollar deals. The Bank’s vehicle finance portfolio also remained the significant contributor to its core earnings.

TATIL’s profitable underwriting continued in 2015. Sluggish investment returns constrained what would otherwise have been an even better bottom line in 2015. In Barbados, TATIL converted Brydens Insurance Inc. from an agency to a branch. We maintained the branding and the market embraced the change to the more simple and direct delivery model. In the latter half of 2015, TATIL launched a number of successful marketing initiatives aimed at building market share in the highly competitive insurance market, which will reap benefits in the year to come.

Tatil Life’s overall profitability was up in 2015. While the life insurance segment still has to deal with a level of volatility in the predominant investment portfolios that dampens profitability, your Group remains committed to the industry and we see several opportunities for growth with controlled risk. We are actively transforming what is inherently a long term business, but we do expect to see some positive results in the short and medium term.

One of those opportunities is to increase cross-selling among the various customer groups within the Sector, and also within the ANSA McAL Group–the latter being one of the internal advantages that a conglomerate, particularly one as diversified as ours can bring. The leadership team of the Financial Services Sector has set success in this area as one of its strategic goals for 2016.

MEDIA, SERVICES & PARENT COMPANY SEGMENT

The media, services and parent company segment includes print, radio, television, retail, shipping and corporate services. Sectors encompassed in the segment are Media, Services, Retail and Barbados.

MEDIA SECTOR HEAD
Teresa White

Media
Our media operations, through Guardian Media Limited, have also performed strongly in 2015, with income before taxation growing by 9.7% to $48.9 million and revenue growing by 7.5% compared to the previous year. These favourable results are largely attributable to elections advertising revenue.

In 2015, GML started a number of important initiatives targeting growth: the creation of the Big Board Company to explore the growing digital billboard market in the country, the acquisition of a media operation outside Trinidad and Tobago through the launch of our newest radio station, Mix 90.1FM in Guyana, the completion of our move away from the AM frequency with the launch of Sky 95.5FM with the best in inspirational music and talk, further investments into technology upgrade through modern radio equipment and the commissioning of a new print production process that will be critical to improve the quality of the Guardian and generate substantial operational savings.

Last year was also a momentous time in the history of Trinidad and Tobago’s oldest and most respected newspaper in circulation when the Guardian’s newsroom joined its printing operations at the paper’s new site in Chaguanas. The courageous decision to move the Guardian’s operations from its historical home in Port-of-Spain to a more central location is key to assisting us in improving the coverage of what is happening beyond the capital, especially as Chaguanas and San Fernando continue to build their economic and social importance to the nation. We also launched a brand new publication, Tobago Today, to strengthen our coverage of what matters to Tobagonians.

The Guardian Media Group continues to improve the quality of content and is actively developing strategies to be well positioned to take advantage of all growth opportunities in an ever-increasing digital world. This, together with a clear proposition to consumers and advertisers of what our brands stand for and a more integrated multimedia operation, should help Guardian Media Limited ride the current period of economic adjustment and emerge stronger than ever.

SERVICES SECTOR HEAD
Ian C. Galt

Services
MBM produced a solid performance in 2015. The company’s objective was to develop the culture of a more “engaging” organisation, and progress was unquestionably made on this front. MBM was able to double market share for Canon products. MBM also qualified as a Dell enterprise partner and was recognised as a Gold partner by Oracle, the second-largest software company worldwide. Additionally, MBM earned one of just two partnerships awarded by Cable & Wireless (C&W) in Trinidad. As a C&W Solutions Provider Partner, MBM was able to compete and win some significant contracts in the security market.

In 2015, Alstons Shipping Limited (ASL), had a successful year as a result of our focus on customer service and growth in the area of ocean air freight. In April 2015, ASL was successful in securing the agency appointment of Hapag Lloyd/CSAV, the fourth-largest container line in the world, which enabled it to secure competitive rates and compelling value added services. ANSA
McAL Group volume and economies of scale enabled ASL to offer highly competitive freight rates to both Group companies and third party clients—another internal advantage that a conglomerate can leverage.

In 2016, we continue to invest in IT systems which would further improve service to our clients and principals. ASL will be located at the ANSA McAL compound in Chaguanas where there will be a new deconsolidation warehouse which will allow the company to service third-party customers.

ANSA Technologies, The performance improved significantly in 2015. In January 2015, ANSA Technologies achieved a significant milestone when the company was awarded a dredging contract from
the Port of Antigua & Barbuda to conduct maintenance dredging, which is critical to the country’s tourism Sector. ANSA Technologies delivered the project in conjunction with Boskalis, a highly reputable dredging company based in the Netherlands. The project was completed on time and within budget and in accordance with international quality and HSSE standards.

In November 2015, ANSA Technologies was awarded STOW certification for two years, an investment that will ensure that the company continues to deliver worldclass service to its client base.
In December 2015, ANSA Technologies became an authorised distributor of Victaulic products for the Caribbean region. These products are used in the Fire Protection, Power Generation, Oil
& Gas, Maritime, HVAC and Municipal & Waste Water Segments of industry.

ANSA Technologies is on track to further improve its product lines and service levels to clients. The company was commended and received high praises from several key clients in the Pt. Lisas Industrial Park for its excellent turnaround times for projects. The company continues to invest in its people ensuring that its workforce has the necessary skills to meet and exceed
the expectations of its growing local and regional client base.

Brydens Xpress, a major supplier for office supplies in Barbados, and Brydens Retail Inc. both performed well in 2015 and were able to deliver on all budget commitments. These encouraging results were mainly due to the companies’ excellent customer service and the development and introduction of new products. Brydens Xpress and Retail increased its promotional activities as well as some visual store enhancements in 2015.

Additionally, both companies have embarked on the use of social media to deliver on new product introductions and other marketing initiatives in 2015. This trend will be used increasingly in 2016 to continue the growth of the businesses.

Retail

Standard Distributors in Trinidad and Tobago achieved double digit growth in both sales and profit in 2015. The company ushered in a new era with the relocation of its Head Office to
the ANSA McAL compound in Chaguanas in a very spacious and modern environment. The renovation upgrade of our branches in Trinidad and Barbados continue into the new year. Standard will also invest in IT and new service facilities in 2016.

PRESIDENT & CEO OF ANSA McAL BARBADOS
Nicholas V. Mouttet

Standard Barbados was able to increase sales by 9% over the prior year. The new store in Wildley has proved to be a good decision and in April 2016 we opened a new branch in Norman Centre in Bridgetown.

Trimart continued to be affected by difficult trading conditions and we are currently evaluating whether the Group should increase its investment in the supermarket business or whether it should divest.

Barbados

The Barbados macroeconomic situation seemed to stabilise in 2015 with modest growth of 0.5% and no real inflation experienced. This was due to a strong performance by the Tourism Sector, which grew by 5% on the back of a 14% increase in arrivals, which translated into unemployment dropping from 12.3% to 11.8%. However, this was dampened by negative growth in all other sectors such as a 3% drop off in construction activity, and by a reduction in disposable income as a result of an expansion of the VAT regime and elimination of the few remaining personal income tax deductions.

While this resulted in continued pressure on consumer spending and a drop-off in ANSA McAL Barbados’ top line by 3.2% versus 2014, skillful management of the business resulted in an increase in the company’s gross profit margin by 2%. Expenses fell by over 3%. This ensured that profit before tax in 2015 grew by 7.7% over 2014, taking ANSA McAL Barbados to its highest levels of profit since the start of the international financial crisis in 2008.

The company’s improved profit performance also ensured that besides being debt-free in Barbados, it was able to repay over Bds$3 million in loans to its Trinidad parent company. This positive trajectory is expected to continue in 2016, spurred on by a continued strengthening of the all important Tourism Sector, signs of which ANSA McAL is already seeing early in the New Year, and supported by the first IMF growth projection of 0.8% for Barbados in many years. With the business on a sound footing, enabled by strong organisational management during the past few years of poor economic performance, the company’s attention can now be focussed on growth of the top line to take advantage of an improving environment and increased opportunities in 2016.

WE ARE BETTER TOGETHER

Great employees make a great business and our Group’s legacy is as much about the progress of our people as it is about our commercial success. Cultivating future leaders is part of our long range planning which is why I am especially pleased about the ANSA McAL Champions Development Programme, an initiative of the Group HR Department. It is the first long-term internship programme for the Group. Eight successful University of the West Indies applicants are now immersed in a dynamic, entrepreneurial environment at various subsidiaries. They get to make their mark from the earliest stages of employment within the Group. We have always maintained that the strength of the Group resides in our people and these young champions have invested in their education and now we are investing in them.

With our 6000 strong employees of diverse ethnic and social backgrounds, we are proud to be able to provide an equal employment opportunity workplace. During the Group’s 2015 long service awards ceremony, we celebrated over eight thousand, seven hundred and sixty years of collective service as over 325 employees were recognized for their contribution. In addition, 9 Sector Performer winners representing Automotive, Beverage, Distribution, Financial Services, Manufacturing, Media, Retail, Services and one winner from Corporate Services, were acknowledged in front of a crowd of over five hundred persons.

Your Group is committed to building the countries in which we operate while growing our businesses. We aim to continuously improve our level of social and ethical responsibility. We recognize the importance of minimizing our environmental impact and are committed to the continual development of our environmental platform across our business chain. We are proud of the fact that we were a pioneer in the recycling industry in Trinidad and have continued to be the largest recycler of glass for the last 60 years. As a Group, we continue to explore ways of becoming a more sustainable provider.

Significant value is created through initiatives supported by the ANSA McAL Foundation, the Guardian Neediest Cases Fund and the Anthony N Sabga Caribbean Awards for Excellence, which celebrated its tenth year with the introduction of a new category of award focussing on Entrepreneurship, a longstanding wish of patron, Dr. Anthony N. Sabga. It remains the most noteworthy philanthropic initiative by a Caribbean organisation. So far, 27 laureates from across the Caribbean diaspora have been named and honoured. The total money in prizes disbursed amounts to TT$12 million dollars. The Eminent Persons Selection Panel of the Awards is now chaired by Sir Shridath Ramphal. We regretfully lost one of our members, Sr. Paul D’Ornellas in early 2016. Her contribution to the Panel was invaluable and she will be greatly missed.

Founded in 1934, the Guardian Neediest Cases Fund which is administered by a Board of Trustees has as its main objective providing relief to persons in distress or in need. Apart from this, the Group assists a range of community based NGOs in achieving their fundraising goals. Our reach extends beyond our national borders as seen when we did not hesitate to send supplies to Dominica, which was ravaged by the effects of tropical storm Erika. One of the most memorable moments in 2015 occurred in October when I humbly accepted, on behalf of the ANSA McAL Group, the conferment of an Honorary Doctor of Laws from the University of the West Indies. I said to the graduands then, “To be a Leader is not to have a huge position. To be a Leader is to see your job as a chance to inspire the world, no matter what that job may be.” Those words still act as a source of inspiration to me and I am incredibly grateful to UWI for the honour.

As is customary, I wish to acknowledge the support and contribution of all of the Directors who sit on the parent and subsidiary boards in the Group. I also wish to thank the Group’s
Executive Team for providing excellent advice, guidance and support during the year and our dynamic workforce for their effort in propelling us to achieve the results. Thanks also go to Mr. Gerry Brooks, ANSA McAL’s former Group Chief Operating Officer, who retired from the Board and the Group in April 2015.  We sincerely thank Mr. Brooks for his contribution to the Group.

Many career paths were advanced within the Group over the past year, as we develop our skills and add new talent. At the top level we congratulate Mr. Ian Galt, who was the Group’s Chief Information Officer, on his appointment as Sector Head – Services; Mr. Jerome Borde, who has been the Managing Director of ANSA Automotive for many years, on his appointment as Sector Head – Automotive, replacing Mr. David Sabga, who remains as Deputy Chairman; Mr. Andy Mahadeo, who was the Managing Director of ANSA McAL Chemicals, on his appointment as Sector Head – Manufacturing; and Mr. Andrew Sabga, Sector Head – Beverage, on his appointment as Deputy Chairman.

As we usher in ANSA McAL’s 135th Anniversary in 2016, we should reflect proudly upon our history and involvement in every sphere of development in Trinidad and Tobago, the region and beyond the boundaries. In the past year, we took many bold steps in executing our strategies and we are excited about the journey ahead. We are confident that what we have put in place, the organisation we have designed, the exceptional talent we have and the services and facilities we are creating have us well-placed to deliver growth and shareholder value, long into the future. We will continue to be disciplined in driving our performance in the line of profitable growth and resource efficiency.

I would like to extend my special thanks to all our employees for their dedication and achievements as well as our trading partners, customers and suppliers for their continued support. What we achieve as a team, is the basis of our success, which is why we are better together.Our best days are still ahead.

A. Norman Sabga, LLD (Hon.) UWI
Group Chairman and Chief Executive

REPORT
OF THE GROUP CHAIRMAN AND CHIEF EXECUTIVE

An enduring feature that has become part of our Group’s Legacy is the ability to deliver consistent performance and value in varying economic circumstances. Over the long term this has built confidence among shareholders and our stakeholders positioning the Group as a secure investment, career and trade partner destination. As we add yet another milestone to the 134 year legacy of our business Group in the Caribbean, I am pleased to report that in 2014 ANSA McAL has once again delivered profit before tax (PBT) above the billion dollar mark. While the year in review presented challenges in some sectors, there were significant opportunities in others that maintained your Group on a positive trajectory and produced a solid result. Our strong gains in our automotive, trading and distribution segments offset the decline in our financial services sector that arose from reduced yields in local and international portfolios. In the period under review, our focus remained on extracting greater efficiency and business synergies to continuously improve our competitiveness, delivering on business plans and budgets, as well as creating stakeholder value. Our operations in the region and the US continue to benefit from refining and refocusing our business processes. The ongoing investments in IT, plant and equipment have performed well. In Barbados, structural adjustment programmes and aggressive destination marketing are predicted to have a positive effect on the economy in the near future. Nevertheless, we have continued our investment strategy and managed to improve performance over prior year in spite of delays in obtaining regulatory approvals to reopen our flagship supermarket. We continue to invest and are proud to record the opening of a new flagship Standard store in Q4 last year. We anticipate an even better 2015. Your Group’s performance has again demonstrated the benefits of a diverse portfolio strategy and the ability to leverage scope and geographic coverage. Further, we believe there is even more room to grow our market share in the respective sectors, irrespective of a challenging macro-economy.

FINANCIAL PERFORMANCE

For a second consecutive year, the Group has crossed $6 billion in revenue and achieved over $1 billion in PBT. Total assets have grown and now exceed $13 billion with liquidity metrics either preserved or improved.

On a sectoral basis, our financial services sector declined by 23% as local and international portfolios generated $97 million less than the prior year. The strong gains in our automotive, trading and distribution segment offset the decline in the manufacturing, packaging and brewing segment. Our operations in the USA, Barbados, Trinidad & Tobago, Grenada and St. Kitts have all performed well.

On a reported basis, revenues generated were $6.1 billion ($6.2 billion – 2013), PBT was $1,065 million ($1,144 million – 2013) and earnings per share (EPS) is $3.97 ($4.31 – 2013). Operating profit (before tax and share of results of associates and joint ventures) exceed the billion dollar mark for the fifth consecutive year at $1,079 million ($1,164 million – 2013).

All balance sheet liquidity metrics have been preserved or improved as we grow our asset base and debt is minimal as reflected by our increasing interest cover ratio of 27.25 (25.12 – 2013).

Our balance sheet has never been stronger but we are never complacent. We remind ourselves that adaptability not just strength is key to long term sustainability. In 2014, your Group committed investments of $184 million ($276 million – 2013) across several Sectors in business improvement and new business projects.

Constant review of our governance and administration structures to verify ‘best practice’ is maintained in our operations and is second nature in the Group. Our ‘act like an owner’ philosophy encourages ‘best practice’ and ‘innovation’ at all levels in the Group.

DISTRIBUTION
Jose L. Nivet – Sector Head

AMCO delivered the lead performance in the Sector, exceeding both prior year and budget. All divisions performed well with a good mix of organic and new business growth. The outlook for 2015 is positive and the AMCO management is carefully monitoring the market for growth opportunities.

BrydenStokes in Barbados is expected to continue to benefit from a new and invigorated management team and a brightening outlook for the economy. The management is implementing initiatives to better manage the operational expenses and improve efficiencies while at the same time continuing to invest in people and brand development.

ANSA McAL Trading in Guyana did feel the effects of a decrease in the momentum of that economy, supply issues and the impact of parallel trade in the year under review affecting performance. However, our business is robust and the management has planned new product launches which will bring excitement to the market and generate growth from new product lines.

T.Wee Duty Free liquor store had a very good year with over 10% growth versus the prior and
continues to provide an excellent retail outlet for our brands.

AUTOMOTIVE
David B. Sabga – Sector Head

In spite of very active competition in the market, our automotive business performed well. We delivered 12% revenue growth and an 11% improvement in profitability on prior year.

Mitsubishi and Ford both lead the Sector in market share growth, Mitsubishi retaining its #1 position in the truck segment, while our other brands maintained their market share.

In October 2014, McEnearney Motors, the FORD agent for 95 years, opened its new facility. Customers are now offered a state-of-the-art FORD dealer showroom experience. This facility is the latest investment and is designed to improve the customer experience and raise the profile of our brands. Continuing the upgrade programme in our Automotive Sector, a new facility in Chaguanas will be opened by August 2015.

We look forward to several initiatives in the coming year that will keep our business “top of mind” and retain our prominence in the Automotive Sector.

In 2014, we completed the installation of our new dealer management IT software and expect to see enhancements in both administrative and customer experience. Mitsubishi has launched its new line of FUSO heavy trucks, 9 tons and up, in April 2015. This is an additional lineup of trucks.

MANUFACTURING
Gerry C. Brooks – Sector Head

2014 was a year in which several companies in the Sector recorded significant success, positioning the Sector for transformative growth and greater value creation in the future. The Sector also recorded the lowest level of Lost Time Injuries and Lost Time Costs in the Group’s history, which is a direct consequence of a consistent, deliberate focus on Group-wide health and safety programmes. This has been an important and continuing focus of the Sector and Group.

ABEL Building Solutions commenced operations of its state-of-the-art block making facility. The facility was formally commissioned in June 2014 by the Honourable Kamla Persad-Bissessar, SC., MP., Prime Minister of Trinidad and Tobago. The new plant has improved compressive strength and quality of the traditional clay clocks and launched the new Hercules Block clay alternative – providing lightweight, compressive strength and better rendering. ABS enjoyed the highest level of block sales in its history in 2014. Our Cladding Curtain Wall, Metpro and Air-conditioning lines have also grown substantially.

Trinidad Match continues to reinvent itself and dominates the local and regional market. A new BBQ match line was launched and several other initiatives are planned for 2015. It has also successfully penetrated several new export markets.

ANSA Polymer has some key transformative initiatives in progress including investment in new Blow Moulding equipment and planned investment in flexible packaging which will better position the company to service existing and new local and regional customers.

ANSA McAL Chemicals enjoyed another excellent year following our successful plant expansion in 2013. The company is well positioned to garner new export markets in both the water treatment and traditional bleach, chlorine and chemical segments. The future is very encouraging.

ANSA Coatings also enjoyed a year of historic achievement, exceeding budget targets for profitability. The Company launched several shops in Trinidad & Tobago and Jamaica, raising the bar on shop customer experience. Future prospects are very encouraging.

RETAIL, SERVICES & MEDIA

Media – Guardian Media Limited (GML) earned revenue of $209.2M in 2014, which compared favourably with $209.8M for the prior year considering this included windfall advertising revenue associated with four national elections.

Editorial content and people remain the key drivers of this business and GML has continued to invest in attracting the best talent and delivering programming and content that grows market share. Higher operating costs in 2014 are associated with our investments in producing programming content, new technology and developing and training our talent. The company reported profit before tax of $44.5M (2013: $58.8M). Net assets stood at $316.2M (2013: $311.8M).

Traditional media remains relatively strong and the GML portfolio has again demonstrated strength and improvement. The Guardian continues to grow circulation and has added a Sunday Business Paper while CNC3 commands prime time and Radio delivers the widest network reach and diversity throughout T&T. In the digital space, the company continues to innovate and invest where they identify new revenue streams and the opportunity to grow the number of consumers of this rapidly evolving channel. The digital Guardian continues to record significant growth and has introduced a number of digital products that will enhance the user experience. GML is in the development stage of several other digital and non-digital projects and initiatives, including electronic billboard advertising, which enhances the media group’s network advertising capacity.

Furthermore, consolidating key elements of our operations with the print production division at the Guardian Building in Chaguanas will open new opportunities for in-house production, efficiencies and cost savings.

Retail – Standard Distributors T&T, Barbados and Bell Furniture Limited experienced significant changes during 2014. Standard Trinidad appointed a new Managing Director and commenced the rejuvenation and upgrade of their showrooms, starting with the renovation of the St. James showroom.

Standard Barbados also got an enhanced look with the relocation of that showroom from Haggatt Hall to Wildey which promises to bring improved performance and results into the operations in Barbados. Similarly, Bell Furniture welcomed a new General Manager and revitalised their offerings with more modern designs being introduced during the year.

The Sector will continue along its transformational path with new initiatives being launched in 2015 geared toward improvements in efficiencies, product offerings and market reach. Focus is also being placed on brand experience and communication to the next generation of customers. The management is very excited by these initiatives and looks forward to successful implementation and growth.

Services – Gross Revenue grew 10% over 2013 mainly due to new business growth at ANSA Technologies. As we plan for the next 5 years, our thrust and focus in the ever changing IT space is receiving the most attention and under recently appointed Sector Head, Ian Galt, we anticipate substantial improvements in profitability over the medium term. We are confident that the changes in structure and management in 2014 have re-aligned the businesses in the sector to address the future trends in these businesses.

Barbados – Our Barbados subsidiaries delivered much improved results versus the prior year despite operating in a difficult economic environment.

This was achieved due to the cumulative positive effects of 2 years of organisational restructuring and consolidation, which resulted in operating expenses being reduced by 16%, improved GP% by 2% and reduced Finance Costs by 90%, all of which improved our cash flow performance.

With the Group now on a more sound footing, we have moved from a period of consolidation to one of investment for growth, beginning with the investment in a new state-of-the art Standard Showroom, which opened in November of 2014. In 2015, we look forward to opening a world-class branch of our Trimart Supermarket chain, while making significant investments in our IT infrastructure at Trimart and our Automotive companies. These investments in combination with an expectation of an improvement in the Barbados economy in 2015, position ANSA McAL Barbados Ltd for still further improvements in performance for the future.

BEVERAGE
Andrew N. Sabga – Sector Head

The Beverage Sector’s growth in 2014 was driven by increased sales in our soft drinks and brewed products portfolios. Of note, Smalta, Carib Light and Mackeson showed healthy growth over prior year. Exports increased from all three breweries.
In spite of economic challenges within the OECS, both Grenada Breweries Limited and Carib Brewery (St. Kitts & Nevis) Limited performed admirably, as they grew both local and export sales while managing their costs.

Carib Glassworks Limited had a challenging year with a 50% reduction in plant capacity as a result of the shut down of one of the two furnaces. Nevertheless, the management has been successful in maintaining supply to key customers. Management has also done an excellent job in managing expenses during this period, this ensured the company remained competitive.

FINANCIAL SERVICES
Chip Sa Gomes – Sector Head

The Sector delivered good operational performance in 2014 but volatility in investments constrained PBT to $270 million in 2014 compared to $360 million in 2013.

In ANSA Merchant Bank, the loan portfolio grew while maintaining best-in-class quality and returns. The Bank also led capital markets transactions with volumes in the multiple billion dollar range for the third year successively.

In Barbados, Consolidated Finance delivered significant profit levels in 2014 well in excess of 2013 and also diversified its product offering by introducing “Green Financing” for renewable energy photovoltaic systems and electric cars in 2014.

Our insurance companies Tatil Life and Tatil General also had good underwriting results in 2014.

I am proud to note that TATIL grew both gross and net premiums and managed claims and other expenses to produce a combined ratio of less than 85% reflecting TATIL’s best underwriting performance to date.

We are working on exciting initiatives across the Financial Services Sector that will continue to build our strong, stable and diverse base of operations to ensure that our products and services remain efficient and relevant to our customers.

SHAREHOLDER VALUE
85TH ANNUAL SHAREHOLDERS’ MEETING AND GROUP EXPO 2014

In July 2014, ANSA McAL Limited hosted our 85th Annual Shareholders’ Meeting at the Regency Ballroom of the Hyatt Regency Hotel. This was followed by our first Group Expo for shareholders of ANSA McAL Limited, Guardian Media Limited and ANSA Merchant Bank Limited who were all welcomed to the “City of ANSA McAL”. Each participating subsidiary hosted a booth at the Expo showcasing their various products and services. Group shareholders were able to interact with our Executives and employees. This historic event was produced to celebrate the financial achievements of the Group and to expose our shareholders to the very different facets of our business.

CORPORATE RESPONSIBILITY

One of the most valuable pillars of our collective 134 year Legacy is ‘doing the right thing, is good for business’ – it deepens our connection with our customers, makes our companies more attractive to talent and builds goodwill in communities in which we operate.

In 2014, The Anthony N. Sabga Caribbean Awards for Excellence selected a further three Laureates bringing the total number of persons to be inducted in its College of Laureates to 23. This represents awards to the value of $10.5 million. The Awards Programme spans all of the English speaking Caribbean with Nominating Committees in Barbados, Guyana, Jamaica, the OECS and Trinidad & Tobago. I regret to say that in November 2014, the Chairman of the Regional Eminent Persons Selection Panel, Mr. Michael K. Mansoor, passed away. Mr. Mansoor was instrumental in the inauguration of these Awards and was Chairman from 2009, having been appointed on the retirement of Sir Ellis Clarke, TC.

The ANSA McAL Group has long been one of the most successful and respected conglomerates in the region, both for our results and integrity. We see our integrity as integral to our success.

HISTORIC SIGNING BETWEEN ANSA McAL LIMITED AND UNIVERSITY OF THE WEST INDIES – ST. AUGUSTINE

In December 2014, a Memorandum of Understanding (MOU) was signed by the University of the West Indies – St. Augustine Campus and ANSA McAL Limited for the construction of the Anthony N. Sabga School of Entrepreneurship, the Guardian Media School of Journalism and a new home for the ANSA McAL Psychological Research Centre. This contribution to the University is the largest benefaction it has received from any private sector entity.

The partnership with UWI is not a new one since the ANSA McAL Psychological Research Centre at the University has been in existence since 1969. Additionally, many of the Laureates who benefited from The Anthony N. Sabga Caribbean Awards for Excellence originated from the University. It is our hope that these institutions will create future generations of high-minded journalists and commercially astute business professionals in the region. Construction of these schools is expected to begin in 2015 at the University’s St Augustine Campus.

OUR PEOPLE

We have a long-standing culture that embraces diversity and fosters an inclusive work environment with equal opportunities. Our employees are vital to the implementation of our business strategy and we continue to recruit, train and reward them to build business capabilities. In 2015, we will be honouring over three hundred and fifty employees who have committed, dedicated and delivered sterling service to our customers, at our Long Service and Group Awards.

I would like therefore to take this opportunity to express my pride and gratitude to the 6000 members of the ANSA McAL Team and thank each and every one of them for doing what it takes to add strength and value to our Legacy of performance.

The ANSA McAL family was deeply saddened by the passing of Mr. Michael K. Mansoor on the 11th November 2014. I take this opportunity to again honour his memory and pay tribute to a colleague who contributed immensely to our Group, the Nation and the Region. We are all better for having known him.

Finally, I appreciate the candour of our nonexecutive Parent Board and operating company directors for enriching our deliberations with their wisdom and experience.

I look forward to another year of value creation for all our stakeholders and building on our Legacy.

A. NORMAN SABGA
Group Chairman & Chief Executive

I am very happy to announce that in the year under review your Group has crossed the Billion Dollar PBT threshold. Even as we celebrate this landmark achievement, being true to our DNA we are already setting our sights on the next horizon.
Twenty thirteen was a year ‘stirred’ by hyper activity in the political arena in T&T creating some spikes in an otherwise predictable economy. Growth in key Sectors of the Group came from the improvement in the execution of our business plans, cost management and a sharper focus on delivering on our investments. By contrast our Barbados operation continues to wrestle with the constraints imposed by macroeconomic fiscal adjustment.
Despite this and the resultant drop off in demand across all sectors, a systematic approach of restructuring each organization to better align with the new market realities has improved the bottom line performance of our businesses. We remain confident and focused on initiatives to further improve efficiency and opportunities for investments in future growth.

While most of our Region lies becalmed, the Guyana economy maintained modest momentum in the period and in spite of foreign exchange challenges and rising inflation our business on the South American continent delivered double digit growth for the fifth consecutive year.

As we reflect on our success as a regional conglomerate we are also acutely aware of the economic and social challenges in our Caribbean markets as well as the growing sophistication of the competition at home and abroad. Fortunately we are also constantly restless, examining the performance in every company, of every Sector for new business opportunities, ways to improve what we do and the innovation to do it better.

In 2013 your Group set another record in its 132rd year of operation and I would like on your behalf to thank every one of the almost six thousand members in the ANSA McAL family, from our Miami operation in the North to Guyana in the South for the effort and dedication it took to achieving this goal. This is a proud achievement for us all.

FINANCIAL PERFORMANCE

Your Executive believes delivering consistent performance over the long term is key to build and maintain stakeholder confidence. I am therefore pleased to report that for the fourth consecutive year your Group has maintained a strong growth trajectory.

Revenues of $6.2 billion have improved by 6% and a record PBT of $1.1billion is up on prior year by 21%. Earnings per Share (EPS) of $4.31 also improved by 17% over the previous period, total assets are now at $12.3 B from $11.3B in 2012.

At the time of reporting your Group remains stronger and healthier than ever before, our robust corporate governance structure infused in every facet of operations. In 2013 debt was further reduced by 53% and our gearing ratio is at 1.9%. Cash generation from operations was $985M which represents 68% of EBITDA, our debt capacity can comfortably support the investments that will fuel the growth of the Group in the years ahead.

We constantly remind ourselves that growing the skill and capacity of our people is the key to unlocking the ingenuity that will keep us ‘steps’ ahead of our competition. I am indeed proud to report, where ever we operate regardless of the challenges, our Executive and Management teams’ commitment to ‘being the best’ is relentless.

In 2013 the Group committed investments in the Manufacturing, Brewing, Media and Automotive Sectors of $285M in new business projects or in areas that either increased capacity or maintained and improved plant and process efficiency. Some of these initiatives are complete and are improving our domestic and export competiveness.

SECTOR REVIEW

Automotive – David B. Sabga
2013 was an excellent year for the Automotive Sector. We saw a 20% increase in revenue and with tighter control of expenses and realignment of our human resources, delivering a 45% increase in profits.

Mitsubishi retained its leadership position in the truck segment and remains committed to supporting Government trust in CNG, having delivered 190 such vehicles to state agencies. Our luxury brands also saw an increase and leadership role in this segment, which we expect will continue as new products are introduced in 2014.

The sector continues to focus on enhancing customer service through skills development, master technician training, and investment in the upgrading of existing showrooms and sector wide investment in a new IT System. In 2014 the sector will open a 50,000 square feet multi brand showroom / service centre and state of the art spare parts warehouse in Chaguanas. We will also be cutting the ribbon on the new Ford building in June.

Beverage – Andrew N. Sabga
2013 was a successful year for the Sector with most brands showing good growth, further entrenching our position as market leader for beer, stouts and malts categories in the Trinidad and Tobago, Grenada and St. Kitts and Nevis markets.

The Stag, Carib and Mackeson brands grew throughout CARICOM as we continue to capture market share in key regional markets.

The Regional Partnership Agreement with Heineken has added this world brand to our product line and provides customers and the trade with a Premium Caribbean and International portfolio. Heineken’s industry knowhow, coupled with the Group’s marketing knowledge and insights, are proving to be a potent platform for further growth and opportunity.

The investments in capacity at Carib Brewery in 2012 were timely, as we were able to capitalize on this increased volume in sales throughout the region.

We expect continued growth in our brands in the local, regional and international markets as we continue to explore new market opportunities for our brands around the world.

Distribution – Joes Nivet
The Distribution Sector had a solid performance in 2013 achieving double digit growth over PY in Revenue and Profitability. Both AMCO in Trinidad and ANSA McAL Trading in Guyana produced a high level of growth and notwithstanding the difficult economic conditions in Barbados, BrydenStokes produced a commendable result, with the Health & Wellness Division achieving budget.

The first year of operation of Twee Liquor Store achieved our expectations and has been well integrated into the Sector and has proved itself to be a good showcase for our AMCO distributed brands.

In 2014 we have planned a warehouse expansion in our Guyana operation which will be the 2nd expansion in three years, to cater for our continued growth and a similar expansion in our Barbados operation which will allow Bryden Stokes to operate from one location following the merger in September ’12. At AMCO, new business initiatives are planned in the Food Service and Liquor Divisions in ’14.

Financial Services – Chip Sa Gomes
The Sector capitalized on several opportunities and delivered a very strong performance. In all business lines namely Banking, General Insurance, Life Insurance and Mutual Funds, profits surged in the period. It is noteworthy that the financial performance was the result of increased business activity without compromise of risk acceptance and management.

We have a unique combination of banking and insurance and we are confident of continued high quality progressive results.

Manufacturing – Gerry C. Brooks
The Manufacturing Sector undertook several transformative investments in 2013 to improve its productivity and competitiveness regionally. Our Sector-wide ERP project was completed on time and on budget and our Human Resource capacity was also strengthened by the appointment of several new executives across the sector.

A major achievement, for the Sector, was the start-up of our $400 million investment in the clay block plant. ANSA Coatings had its most successful year following the integration of two manufacturing plants into one facility. Trinidad Match, the oldest company in the Sector, also continues to perform commendably, achieving its best efficiency in the last five years. ANSA Chemicals plant expansion project was completed in Q1 2013. At ANSA Polymer, the investment in state of the art PET equipment and will allow customers access to a wider range of quality packaging solutions. Consistent with the Group’s overall vision, we have made an investment of $0.5 billion in this sector, leaving it well positioned to exploit market opportunities and service its customers today and well into the future.

Retail & Services – David G. Inglefield
Retail: Standard Distributors T&T, Barbados and Bell Furniture Ltd as a group delivered one of the best years on record to mark the first full year as part of our Group. Revenues improved by 17% on prior year. At Standard the infusion of a young IT savvy executive management team has accelerated the pace of change in key areas of the operation clearing the path for closer contact with next generation of customers via the social media channel. Standard Barbados has a new CEO and is now benefiting from synergies in procurement and marketing and is improving performance in spite of a challenging economy. Bell has been reorganised to improve production efficiency and quality and remains very competitive in the local & regional markets.

Services: Although the Sector grew Revenue by 10% over prior year, performance was not consistent across the sector. Our purchasing/logistics operation in the US grew by 11% and in spite of a tough economy in Barbados our Brydens Xpress & Retail business performed marginally better than 2012. However, MBM and ANSA Tech had significant changes in org structure and the implementation of the new ERP IT system that surfaced challenges that impacted their performance. These have all been addressed and the companies are geared to deliver budget performance in 2014. The outlook for the sector is positive and plans for expansion into complementary service businesses are under review.

SHAREHOLDER VALUE

Consistent with the ANSA McAL aspiration of value creation for all stakeholders I am pleased to report that shareholders will again benefit from the ‘consistent improved performance’ that I referred to earlier. Your Directors have accordingly declared a dividend of $1.30 which reflects an improvement of 19% over 2012.

In order to share the celebration of hitting the ‘Billion $ Mark’ with you, your Executive has decided that our 2013 Annual General Meeting will be an event worthy of this success and of your loyalty and commitment as investors. This year, as part of our Annual Meeting of Shareholders, we will stage a Group Expo specifically with you in mind. This event will take place on Saturday 5th July 2014 at the Hyatt Regency Trinidad from 10.00 a.m.

The exhibition will demonstrate to you our Shareholder, how we are investing your money to deliver maximum returns.You will get the opportunity to have direct interface with your Executives, Managers and Staff Members, ask questions and hear first-hand about future plans, products & services.

We are pleased to invite you to attend our AGM/Expo and take advantage of deals and discounts designed exclusively for you on the day.

CORPORATE RESPONSIBILITY

The ANSA McAL Group has long held the view that business has an opportunity and obligation to improve the lives of nationals of a country and to serve the greater good. We believe that economic prosperity is a pre-condition for community well-being and a sustainable society.

This philosophy which is well ingrained throughout the Group, has influenced how we invest in our business and employees and the type of support we give to our communities in the spheres of culture, sport, education and the arts. We are committed to responsible citizenship that includes the health and safety of our staff, the well-being of our communities where we serve, a healthy and sustainable environment, the economic value we create and maintaining stringent corporate governance rules to protect our shareholders’ investment.

The Group continues to take particular pride in the sponsorship of the Anthony N. Sabga Caribbean Awards for Excellence which started in 2006. Every year, prizes valued at (TT) 1.5 million are awarded to Laureates in Arts & Letters, Science & Technology and Public & Civic Contributions. To date, we have contributed over 10 million dollars towards the Foundation and recognized over 18 Caricom Nationals of Trinidad & Tobago, Dominica, St Vincent & the Grenadines, Barbados, Grenada, St Kitts & Nevis and St Lucia.

We will continue to embrace our corporate responsibilities with our people and stakeholders.

OUR PEOPLE

In 2013 your Group set another record in its 132rd year of operation and I would like on your behalf to thank every one of the almost six thousand members in the ANSA McAL family, from our Miami operation in the North to Guyana in the South for the effort and dedication it took to achieving this goal. This is a proud achievement for us all.

The ‘billion dollar’ landmark achievement of the Group in 2013 and the success of the individual companies is a reflection of the talent, strength and resilience of the people in your Group that delivered this result.
This is a validation our corporate mantra that, ANSA McAL is . . . the place for performers.

During the year under review, I am pleased to report that Dr Hamid Ghany joined Guardian Media Ltd (GML) as Managing Editor/Deputy Managing Director. Mr Grenfill Kissoon was appointed a Non-Executive Chairman of the Board of Directors of GML. Mr Kissoon replaced Mr Dennis Gurley who retired from the Board after 11 years of service. I would like to place on record our sincere gratitude to Mr Gurley for his sterling contribution to our Media – Group.

In our Automotive Sector, Mr David Sabga took the helm as Sector Head whilst Mr Ray A. Sumairsingh was appointed as Executive Director at ANSA McAL Ltd.

Mr Chip Sa Gomes was promoted to Sector Head, Financial Services and Mr Gregory Hill was appointed as the new Managing Director of ANSA Merchant Bank Ltd. Additionally, Mr Aneal Maharaj relinquished the post of Sector Head Retail to concentrate on his substantive post of Group Finance Director.

After improving competitiveness and circulation of our print media and growing CNC3 to the number one TV station, Mr David G. Inglefield relinquished the post as the Media Sector Head and assumed the role of Chairman of Standard Distributors in the Retail Sector.

Congratulations are in order for Mr Gerry Brooks, our Chief Operating Officer and Mrs Anna Maria Garcia-Brooks, Non-Executive Director CNC3, for being named as Distinguished Alumni from the University of the West Indies.

Once again I would like to record the immense pride I feel, particularly at this time, to lead our Group made up of some of the best and brightest people in the business community today. As I review what must be one of the most diverse groups in the Caribbean today it reinforces my belief in our business model and corporate governance structure.

In spite of the uncertainty generated by the need to adjust the economic and social order in our region, I see opportunity for growth and expansion in every sector of your Group. I also feel the energy of our people and the momentum generated by our successes. I sense an eagerness to reach even further, to create even greater value in the years ahead.

In closing, let me also take this opportunity to thank our Parent Board members, the non-executive members that serve on our subsidiary boards, as well as my Executive Team for their support and dedication to our shared goals and for the achievements in 2013.

A. Norman Sabga
Group Chairman & Chief Executive