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Financials NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2016 9. Selling and distribution expenses Group Salaries and related staff costs Depreciation Advertisement and promotion Haulage expenses Others 10. Finance income and finance costs ₦’million 6,161 Company Year ended Year ended Year ended Year ended 31-Dec-16 31-Dec-15 ₦’million 10,334 17,716 1,534 12,358 3,147 49,344 3,739 82,667 Group ₦’million 29,276 2,558 53,500 31-Dec-16 31-Dec-15 ₦’million 7,655 11,297 701 29,465 2,831 51,949 Company Year ended Year ended Year ended Year ended 31-Dec-16 31-Dec-15 ₦’million 31-Dec-16 31-Dec-15 ₦’million Finance income: Interest income Net foreign exchange gain (Note 10.1) ** Finance costs: Interest expenses Less: amounts included in the cost of qualifying assets Other finance cost 2,662 41,155 43,817 45,583 (411) 45,172 209 45,381 1,699 12,250 13,949 33,807 (653) 33,154 323 33,477 45,439 179,269 224,708 34,244 (411) 33,833 209 34,042 ₦’million 23,410 30,938 54,348 27,809 (653) 27,156 323 27,479 The average effective interest rate on funds borrowed generally is 13% per annum for both Group and Company respectively (2015: 12.9% and 12.6% per annum for the Group and Company). These are the rates used for the capitalisation on qualifying assets. 10.1 Foreign exchange gain or loss arose as a result of the translation of foreign currency denominated balances at the year end across the Group. The increase in the current year was due to the depreciation of the respective currencies against the major foreign currencies at year end. ** In the prior periods exchange gain and losses were presented separately. Starting in 2016, the Group now presents net exchange gain/(losses) ₦’million 5,401 11,818 2,174 21,372 2,558 43,323 Annual Report 2016 177

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