Group Financials RED STAR EXPRESS PLC

Group Financials RED STAR EXPRESS PLC UNAUDITED FINANCIAL REPORT FOR THE PERIOD ENDED 31 DECEMBER 2018

UNAUDITED FINANCIAL HIGHLIGHTS FOR THE PERIOD ENDED 31st DECEMBER, 2018 MAJOR STATEMENT OF COMPREHENSIVE INCOME ITEMS THE GROUP Interim Period Year to Date Interim Period Year to Date Oct'18 - Dec'18 Apr'18 - Dec'18 Oct'17 - Dec'17 Apr'17 - Dec'17 TURNOVER 2,677,216 7,557,718 2,100,091 6,202,192 PROFIT BEFORE TAX 181,702 534,000 104,651 428,186 PROFIT AFTER TAX 123,557 363,120 71,161 291,166 EARNINGS PER SHARE (KOBO) 62 49 THE COMPANY Current Period Comparative Period Interim Period Year to Date Interim Period Year to Date Oct'18 - Dec'18 Apr'18 - Dec'18 Oct'17 - Dec'17 Apr'17 - Dec'17 N' 000 N' 000 N' 000 N' 000 TURNOVER 1,553,315 4,261,191 1,074,007 3,152,514 PROFIT BEFORE TAX 142,368 404,503 73,721 214,182 PROFIT AFTER TAX 96,810 275,062 50,131 145,645 EARNINGS PER SHARE (KOBO) 47 25 MAJOR STATEMENT OF FINANCIAL POSITION ITEMS THE GROUP THE COMPANY Dec-18 Mar-18 Dec-18 Mar-18 N' 000 N' 000 N' 000 N' 000 TOTAL ASSETS 5,270,239 4,993,995 4,087,936 3,867,126 SHAREHOLDERS FUND 2,654,906 2,527,585 1,913,053 1,873,790 SHARE CAPITAL 294,748 294,748 294,748 294,748 SHARE PREMIUM 296,433 296,433 296,433 296,433 REVENUE RESERVE 2,063,725 1,936,404 1,321,872 1,282,609 INFORMATION PER 50 KOBO ORDINARY SHARE THE GROUP THE COMPANY Dec-18 Mar-18 Dec-18 Mar-18 NO OF ORDINARY SHARES 589,497 589,497 589,497 589,497 NET ASSET (N) 2,654,907 2,527,585 1,913,054 1,873,790 NET ASSET PER SHARE(KOBO) 450 429 325 318

UNAUDITED CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER, 2018 Dec-18 Mar-18 Dec-18 Mar-18 Note N'000 N'000 N'000 ASSETS Non Current Assets Property, plant and equipments 7 1,472,183 1,259,512 752,240 615,458 Intangible Assets 7 35,208 32,668 35,208 32,668 Long Term Prepayments 12 29,211 32,456 29,211 32,456 Financial Assets Available for Sale 8 477 477 477 477 Investment in subsidiary - 374,065 374,065 Deposit for shares - - 1,500 - Employee Benefit asset - - - - Total Non Current Assets 1,537,079 1,325,113 1,192,701 1,055,124 Current Assets Inventories 9 48,737 52,956 45,534 49,216 Trade debtors 10 2,342,141 1,993,762 1,302,069 1,197,127 Current prepayments 12 131,515 135,204 66,285 74,421 Other receivables 11 887,207 937,092 332,760 444,804 Due from related company 26 893,301 655,405 Cash and cash equivalents 13 323,561 549,868 255,287 391,029 Total Current Assets 3,733,160 3,668,882 2,895,236 2,812,002 TOTAL ASSETS 5,270,239 4,993,995 4,087,936 3,867,126 EQUITY AND LIABILITIES LIABILITIES Non-current liabilities Deferred taxation 15 181,313 181,313 29,693 29,693 Provision for liabilities and charges Finance Lease Obligation 65,703 76,832 Employee Benefit Liabilities 64,214 78,473 68,550 78,473 Total Non Current Liabilities 311,230 336,618 98,243 108,166 Current liabilities Trade creditors 331,986 520,434 331,986 515,215 Other creditors and accruals 14 1,697,560 1,288,549 1,368,277 1,018,096 Due to related companies 26 228,727 185,296 Term loan: Falling due within 12 Months (finance lease) 77,665 70,580 - Income tax liabilities 6 196,891 250,229 147,650 166,563 Total Current Liabilities 2,304,102 2,129,791 2,076,639 1,885,170 TOTAL LIABILITIES 2,615,332 2,466,409 2,174,882 1,993,336 Equity Share capital 16 294,748 294,748 294,748 294,748 Share premium 296,433 296,433 296,433 296,433 General reserve 18 2,063,725 1,936,404 1,321,872 1,282,609 Total Equity 2,654,906 2,527,585 1,913,053 1,873,790 TOTAL EQUITY AND LIABILITIES 5,270,239 4,993,995 4,087,936 3,867,126 This consolidated financial statements were approved by the Board on the 22nd of January 2019 and signed by: Sola Obabori Group Managing Director FRC/2016/IODN/00000015290 Babura Auwalu Badamasi Chief Financial Officer FRC/2016/ICAN/00000014402

UNAUDITED CONSOLIDATED AND SEPARATE STATEMENT OF COMPREHENSIVE INCOME Current Period Comparative Period Current Period Comparative Period Note Interim Period Year to Date Interim Period Year to Date Interim Period Year to Date Interim Period Year to Date Oct'18 - Dec'18 Apr'18 - Dec'18 Oct'17 - Dec'17 Apr'17 - Dec'17 Oct'18 - Dec'18 Apr'18 - Dec'18 Oct'17 - Dec'17 Apr'17 - Dec'17 Turnover 1 2,677,216 7,557,718 2,100,091 6,202,192 1,553,315 4,261,191 1,074,007 3,152,514 Cost of sales 3 (2,015,490) (5,735,661) (1,592,288) (4,589,558) (1,092,770) (3,067,113) (776,299) (2,225,621) Gross profit 661,726 1,822,057 507,802 1,612,634 460,545 1,194,078 297,708 926,893 Other income 2 439 6,613 151 3,703 439 4,824 496 1,117 662,165 1,828,671 507,953 1,616,338 460,984 1,198,902 298,204 928,011 Administarative and Other Operating Ex 3 (444,172) (1,207,566) (377,995) (1,109,992) (293,058) (739,365) (209,385) (664,213) Staff Gratuity 4 (3,761) (11,901) (3,906) (12,965) (3,013) (9,040) (3,013) (9,040) Depreciation & Amortisation 5 (25,748) (60,255) (16,559) (61,942) (24,022) (55,088) (14,532) (55,171) Total operating Expences (473,681) (1,279,722) (398,460) (1,184,899) (320,094) (803,493) (226,929) (728,424) Finance Income 1,478 11,023 3,332 15,905 1,478 9,093 2,446 14,595 Finance Costs (8,260) (25,972) (8,174) (19,157) - - - - Net Finance Costs (6,782) (14,949) (4,842) (3,252) 1,478 9,093 2,446 14,595 Profit Before interest and Tax 181,702 534,000 104,651 428,186 142,368 404,503 73,721 214,182 Interest and similar charges - - - - - - - - Provision for diminution in investments Profit Before Income Tax 181,702 534,000 104,651 428,186 142,368 404,503 73,721 214,182 Income Tax 6 (58,145) (170,880) (33,490) (137,020) (45,558) (129,441) (23,591) (68,538) Profit from continuing operation 123,557 363,120 71,161 291,166 96,810 275,062 50,131 145,645 Profit attributable to: Owners of the company 123,557 363,120 71,161 291,166 96,810 275,062 50,131 145,645 Non controlling Interests - - - - - - - - Profit for the period 123,557 363,120 71,161 291,165 96,810 275,062 50,131 145,645 Earnings per share Basic earnings per share (kobo) 27 21 62 12 49 16 47 9 25 Diluted earnings per share (kobo) Number of ordinary shares in issue 27 589,497 589,497 589,497 589,497 589,497 589,497 589,497 589,497

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY 2018 2017 2018 2017 Issued Capital Share Premium Retained Earnings Total Issued Capital Share Premium Retained Earnings Total As at 1st April 2018 294,748 296,433 1,936,404 2,527,585 As at 1st April 2018 294,748 296,433 1,282,609 1,873,790 Profit for the year 363,120 363,120 Profit for the year 275,062 275,062 Other comprehensive income: Other comprehensive income: Re-measurement gain/(loss) on defined benefit plan Re-measurement gain/(loss) on defined benefit plan - Dividend (235,799) (235,799) Dividend (235,799) (235,799) of 50 kobo each of 50 kobo each As at 31st December 2018 294,748 296,433 2,063,725 2,654,906 As at 31st December 2018 294,748 296,433 1,321,872 1,913,053 Consolidated Statement of Changes in Equity Consolidated Statement of Changes in Equity For the year ended 31 March 2017 For the year ended 31 March 2017 Issued Capital Share Premium Retained Earnings Total Issued Capital Share Premium Retained Earnings Total As at 1st April 2017 294,748 296,433 1,840,867 2,432,048 As at 1st April 2017 294,748 296,433 1,199,858 1,791,039 Profit for the year 220,710 220,710 Profit for the year 105,224 105,224 Other comprehensive income: Other comprehensive income: Re-measurement gain/(loss) on defined benefit plan - Re-measurement gain/(loss) on defined benefit plan - Dividend (235,799) (235,799) Dividend (235,799) (235,799) of 50 kobo each of 50 kobo each As at 31st December 2017 294,748 296,433 1,825,778 2,416,959 As at 31st December 2017 294,748 296,433 1,069,283 1,660,464

CONSOLIDATED AND SEPARATE STATEMENT OF CASH FLOWS GROUP THE COMPANY NOTE Dec-18 Dec-17 Dec-18 Dec-17 Cash flows from operating activities: Cash receipts from customers 6,222,961 5,895,492 3,364,904 2,876,956 Payment to suppliers and employees (5,358,106) (5,087,319) (2,884,495) (2,439,642) VAT (NET) (197,503) (120,251) (146,520) (90,980) Taxes paid (82,250) - (82,803) - (12,026) - (11,180) - Net cash provided by operating activities 585,102 605,120 321,864 335,154 Cash flows from investing activities: - - - - Interest received 11,023 15,905 9,093 14,595 Dividend received - - - - Proceeds from sale of PPE - - - - Purchase of Intengible assets (17,766) (24,434) (17,766) (21,984) Acquisition of PPE (572,685) (347,534) (236,714) (159,272) Increase in investment - - - - Net cash provided by investing activities (579,427) (356,063) (245,387) (166,661) Cash flows from financing activities: - - - - Proceeds from issue of share capital - - - - Proceeds from Long term burrowings 48,300 114,175 - - Proceeds of Share premium - - - - Term Loan repayment (42,091) (21,084) - - Interest Paid (25,972) (19,157) - - Dividend paid (212,219) (216,270) (212,219) (216,270) Net cash provided by financing activities (231,982) (142,336) (212,219) (216,270) Net (decrease)/increase in cash and cash equivalents (226,307) 106,722 (135,742) (47,777) Net foreign exchange difference - - - - Cash and cash equivalents at the beginning of the year 549,868 513,661 391,029 485,068 Cash and cash equivalents at the end of the year 323,561 620,383 255,287 437,290

Notes to the Accounts (Statement Of Comprehensive Income) 1 TURNOVER Current Period Comparative Period Current Period Comparative Period Interim Interim Interim Period Year to Date Interim Period Year to Date Period Year to Date Period Year to Date Oct'18 - Dec'18 Apr'18 - Dec'18 Oct'17 - Dec'17 Apr'17 - Dec'17 Oct'18 - Dec'18 Apr'18 - Dec'18 Oct'17 - Dec'17 Apr'17 - Dec'17 Courier 1,553,315 4,261,191 1,074,007 3,152,514 1,553,315 4,261,191 1,074,007 3,152,514 Logistics 498,301 1,325,269 393,695 1,188,111 Freight 192,456 653,152 220,226 629,751 Support Service 433,145 1,318,105 412,162 1,231,815 2,677,216 7,557,718 2,100,091 6,202,192 1,553,315 4,261,191 1,074,007 3,152,514 2 OTHER OPERATING INCOME a. Other Income Insurance Claim 439 6,165 105 1,801 439 4,824 496 1,117 Other Sundry income - 449 46 1,502 - - - - Bad debt recovered - - - 400 - - - - 439 6,613 151 3,703 439 4,824 496 1,117 OTHER OPERATING INCOME 439 6,613 151 3,703 439 4,824 496 1,117 3 COST OF SALES Staff cost 382,277 1,120,249 325,471 990,865 159,589 478,367 108,937 402,147 Pension 19,458 58,350 18,848 54,376 7,522 22,557 7,349 21,238 Gratuity 18,804 47,604 15,624 51,861 15,067 36,161 12,054 36,161 Medical 48,021 146,520 44,390 137,579 16,517 51,495 14,331 41,463 Training 7,068 14,996 5,860 21,046 5,123 9,780 1,681 10,185 International delivery costs 532,681 1,563,373 380,185 1,034,795 408,320 1,161,626 260,363 678,382 Domestic freight 399,344 1,046,636 271,507 813,953 199,609 511,669 128,971 347,444 Vehicle running costs 274,956 769,933 202,825 594,563 68,827 167,101 48,438 142,443 Agent costs 66,215 194,770 58,219 175,612 65,199 193,432 58,207 175,354 Local transport 53,320 151,121 51,758 151,968 42,213 121,415 39,617 118,396 Clearing and documentation charges 69,656 218,147 74,240 206,427 34,627 97,819 19,864 65,783 Rents ant rates of outlets 30,838 94,269 32,782 89,019 22,466 72,303 27,095 69,013 Insurance 17,804 36,984 25,213 36,250 6,529 16,096 12,584 19,177 Depreciation 71,080 197,546 64,035 171,716 19,883 59,323 18,690 51,951 Repairs and maintenance 23,969 75,163 21,330 59,528 21,278 67,970 18,119 46,485 2,015,490 5,735,661 1,592,288 4,589,558 1,092,770 3,067,113 776,299 2,225,621 3 Administrative & other Expenses Repairs and maintenance 29,950 82,938 31,821 88,023 24,475 66,167 19,808 62,148 Transportation and travelling costs 37,892 62,906 25,397 54,527 32,905 43,730 15,355 35,368 Legal and professional charges 23,787 76,731 23,140 90,210 18,001 58,398 20,678 78,290 Publicity and promotion 22,996 39,684 17,757 43,502 16,190 21,881 6,017 14,254 Communication and telephone 22,798 54,674 19,957 47,575 16,935 31,537 8,641 22,704 Printing and stationery 25,448 90,886 25,621 84,964 21,874 78,355 20,908 73,316 Subscriptions and donations 11,765 31,101 4,530 20,183 7,812 23,230 2,273 15,554 Audit fee 5,698 15,925 4,225 14,022 4,250 10,750 3,250 9,750 Bank Charges 6,259 17,911 3,836 13,568 4,186 13,058 2,816 10,041 Medical 12,005 36,630 11,098 34,395 4,129 12,874 3,583 10,366 Power and water 33,231 101,312 33,099 96,357 26,311 71,813 23,066 72,456 Office protection services 16,002 38,076 10,849 31,656 12,233 27,620 6,844 19,593 Staff costs 138,953 405,072 117,327 342,927 65,991 182,438 52,762 157,401 Hotel accommodation and entertainmen 17,246 44,114 7,800 40,717 15,255 37,170 4,856 30,927 Insurance 4,451 9,246 6,303 9,063 1,632 4,024 3,146 4,794 Training 1,767 3,749 1,465 5,262 1,281 2,445 420 2,546 Newspaper and periodicals 420 1,366 447 1,395 341 1,116 358 1,160 Specific provision for doubtful debts 24,593 72,500 29,625 77,375 14,500 43,500 14,500 43,500 Annual general meeting expenses 8,909 22,744 3,698 14,272 4,757 9,260 104 44 444,172 1,207,566 377,995 1,109,992 293,058 739,365 209,385 664,213 4 Gratuity Employee benefit expenses 3,761 11,901 3,906 12,965 3,013 9,040 3,013 9,040 3,761 11,901 3,906 12,965 3,013 9,040 3,013 9,040 5 Depreciation & Amortisation Amortisation of Intangible Assets 5,295 15,226 9,872 9,872 5,295 15,226 9,736 9,736 Depreciation charge 20,453 45,029 6,687 52,071 18,726 39,862 4,796 45,436 25,748 60,255 16,559 61,942 24,022 55,088 14,532 55,171 Finance Income/ Finance Costs Interest Received (1,478) (11,023) (3,332) (15,905) (1,478) (9,093) (2,446) (14,595) Finance Cost - Interest payment on lease rentals 8,260 25,972 8,174 19,157 - - - - 6,782 14,949 4,842 3,252 (1,478) (9,093) (2,446) (14,595)

Notes to the Accounts Current Period Comparative Period Current Period Comparative Period Interim Period Year to Date Interim Period Year to Date Interim Period Year to Date Interim Period Year to Date 6. TAXATION Oct'18 - Dec'18 Apr'18 - Dec'18 Oct'17 - Dec'17 Apr'17 - Dec'17 Oct'18 - Dec'18 Apr'18 - Dec'18 Oct'17 - Dec'17 Apr'17 - Dec'17.1 Statement of Comprehensive Income Income tax 58,145 160,200 31,395 128,456 45,558 121,351 22,116 64,255 Education tax - 10,680 2,093 8,564-8,090 1,474 4,284 Irrecoverable WHT - - 58,145 170,880 33,490 137,020 45,558 129,441 23,591 68,538 Tax back duty assessment Deferred taxation (Note 15) - - - Relating to origination & reversal of temporary differences Charge for the year Write back for the year - - - - 58,145 170,880 33,490 137,020 45,558 129,441 23,591 68,538 Dec-18 Mar-18 Dec-18 Mar-18.2 Statement o Financial Position At the beginning of the year 250,229 206,444 166,563 109,418 Charge for the year 170,880 225,389 129,441 148,353 Payments during the year (82,250) (61,808) (12,026) (11,180) Withholding tax credit utilised (141,968) (119,796) (136,328) (80,028).3 At the end of the year 196,891 250,229 147,650 166,563 The charge for income tax in these consolidated financial statements is based on the provisions of the Companies Income Tax Act, CAP C21, LFN 2004 as amended to date. Education tax is based on the provisions of the Education Tax Act, CAP E4, LFN 2004.

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT. 31ST DECEMBER, 2018 Company 10010 10015 10075 <<10025,10080 10030 <<10050,10040 <<10035,10045 10095 10060 Cost Land Buildings Plant & Machinery Motor Vehicles MOTOR CYCLES COMPUTER & OTHER EQUIPMENT Furniture, Fittings & Eqiup WORK IN PROGRESS N'000 At 1 April 2018 129,545 322,896 69,792 326,511 77,443 322,433 51,928 17,804 1,318,352 Addition 90,931 19,648 2,580 18,183 12,853 31,238 5,509 55,773 236,714 Disposals - - - - - (750) - - (750) Adjustment - - - - - - - - - At 31ST DECEMBER, 2018 220,476 342,544 72,372 344,694 90,296 352,921 57,437 73,577 1,554,316 Depreciation and impairment At 1 April 2018-89,107 50,191 208,443 78,521 241,351 35,278-702,891 Depreciation charge for the year - 15,783 6,813 34,283 9,257 28,786 4,868-99,790 Disposals - - - - - (604) - - (604) Adjustment - - - - - - - - - At 31ST DECEMBER, 2018-104,890 57,004 242,726 87,778 269,533 40,146-802,077 - - Net book value - At 31ST DECEMBER, 2018 220,476 237,654 15,368 101,967 2,518 83,388 17,291 73,577 752,240 At 31 March 2018 129,545 233,789 19,601 118,068 1,078 81,082 16,650 17,804 615,458 Total SCHEDULE OF PROPERTY PLANT AND EQUIPMENT. 31ST DECEMBER, 2018 Group 10010 10015 10075 <<10025,10080 10030 <<10050,10040 <<10035,10045 10095 Cost Land Buildings Plant & Machinery Motor Vehicles MOTOR CYCLES COMPUTER & OTHER EQUIPMENT Furniture, Fittings & Eqiup WORK IN PROGRESS Total N'000 At 1 April 2018 206,941 501,932 78,166 1,098,622 412,045 337,429 90,972 25,204 2,751,311 Addition 90,931 23,708 2,580 223,865 71,969 14,671 27,326 117,635 572,685 Disposals - (117,893) (750) (118,643) Adjustment - At 31ST DECEMBER, 2018 297,872 525,640 80,746 1,204,594 484,014 351,350 118,298 142,839 3,205,353 Depreciation and impairment At 1 April 2018-112,210 57,634 615,499 397,591 246,947 61,916-1,491,797 Depreciation charge for the year 11,354 7,100 220,521 37,452 17,447 21,087-314,961 Disposals (72,981) (604) - (73,585) Adjustment - - At 31ST DECEMBER, 2018-123,564 64,734 763,039 435,043 263,789 83,003-1,733,172 - - Net book value - At 31ST DECEMBER, 2018 297,872 402,076 16,012 441,555 48,971 87,561 35,295 142,839 1,472,183 At 31 March 2018 167,043 382,311 30,408 212,437 13,291 63,178 13,726-1,259,512 INTANGIBLE ASSETS 31ST DECEMBER, 2018 THE GROUP THE COMPANY N'000 N'000 At 1 April 2018 93,805 93,305 Addition 17,766 17,766 Disposals - - Adjustment - - At 31ST DECEMBER, 2018 111,571 111,071 Depreciation and impairment At 1 April 2018 61,137 60,637 Depreciation charge for the year 15,226 15,226 Disposals - - Adjustment - - At 31ST DECEMBER, 2018 76,363 75,863 Net book value At 31ST DECEMBER, 2018 35,208 35,208 At 31 March 2018 32,668 32,668

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8. FINANCIAL ASSETS AVAILABLE FOR SALE 2018 2018 2018 2018 DEC MAR DEC MAR a. Quoted Equities Nemeith International Pharmaceuticals Plc 822,743 ordinary shares of 50 Kobo each 2,057 2,057 2,057 2,057 2,057 2,057 2,057 2,057 Provision for diminution in investment (1,580) (1,580) (1,580) (1,580) 477 477 477 477 b Unquoted investments at cost: 8.2 Investment in subsidiaries: % Holding Investment in Red Star Freight Limited 100 100,000 100,000 Investment in Red Star Supports Services Limited 100 49,065 49,065 Investment in Red Star Logistics Limited 100 225,000 225,000 374,065 374,065 9 STOCKS 477 477 374,542 374,542 Stationeries and packaging materials 26,524 38,950 23,685 35,713 Fuel and oil 13,946 9,457 13,946 9,457 Spare parts 8,267 4,549 7,903 4,046 Provision for obsolete stock - - - - 10 TRADE DEBTORS 48,737 52,956 45,534 49,216 Trade debtors 2,472,902 2,124,523 1,375,845 1,270,903 Provision for doubtful debts (130,761) (130,761) (73,776) (73,776) 2,342,141 1,993,762 1,302,069 1,197,127

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2018 2018 2018 2018 DEC MAR DEC MAR 11 OTHER RECEIVABLES WHT receivable from customers 350,419 361,495 62,998 125,340 WHT receipts received 228,301 254,684 116,746 147,011 Bank interest receivable 989 989 989 989 Staff car advance 72,062 89,714 59,591 74,040 Staff business cash advance 97,377 69,759 20,404 20,859 Other staff advance 138,060 160,451 72,032 76,565-887,207 937,092 332,760 444,804 12 PREPAYMENTS Long term Prepayments 29,211 32,456 29,211 32,456 Current Prepayments 131,515 135,204 66,285 74,421 160,726 167,660 95,496 106,877 13. Cash, Bank balances and other equivalents Cash balances 1,023 751 977 723 Cash-in-transit 60,891 27,117 57,802 26,518 Bank Balances 129,509 223,936 64,520 137,249 Short Term Deposits 132,138 298,064 131,987 226,539 323,561 549,868 255,287 391,029 323,561 549,868 255,287 391,029 14. OTHER CREDITORS AND ACCRUALS Accruals 454,780 310,713 311,028 210,781 Agents clearing charges 484,851 472,994 493,627 472,994 Union dues - - - - Withholding Taxes 106,046 76,975 93,202 69,698 Value added tax 281,513 239,233 144,602 121,580 Staff pension accruals (Note 14.1) 15,462 18,606 3,842 4,727 Unclaimed Dividend 101,539 101,539 101,539 101,539 Other creditors 253,369 68,488 220,438 36,777 1,697,560 1,288,549 1,368,277 1,018,096 14.1 Staff pension accruals At the beginning of the year 18,606 10,967 4,727 4,347 Provision for the year 134,768 169,364 53,133 67,007 Payments and remittances (137,912) (161,725) (54,017) (66,627) At the end of the year 15,462 18,606 3,842 4,727 15. DEFERRED TAXATION At the beginning of the year 181,313 150,623 29,693 33,283 Charge for the year 37,642 3,362 Write-back in the year - (6,952) - (6,952) At the end of the year 181,313 181,313 29,693 29,693

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Dec-18 Mar-18 Dec-18 Mar-18 16 SHARE CAPITAL Authorised 1,000,000,000 ordinary shares of 50 kobo each 500,000 500,000 500,000 500,000 Issued and fully paid 589,496,760 ordinary shares of 50 kobo each 294,748 294,748 294,748 294,748 18 GENERAL RESERVE At the beginning of the year 1,936,404 1,840,867 1,282,609 1,199,858 Profit for the period 363,120 347,558 275,062 334,772 Other comprehensive Income - - - Transfer to RSE Foundation - - - - Acturial Loss on defined benefit plan - (16,220) (16,220) Prior year adjustment (uncaptured) - Dividend declared (235,799) (235,801) (235,799) (235,801) At the end of the year 2,063,725 1,936,404 1,321,872 1,282,609

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST DECEMBER, 2018 19. RECONCILIATION OF NET PROFIT AFTER TAXATION TO CASH PROVIDED BY OPERATING ACTIVITIES Dec-18 Dec-17 Dec-18 Dec-17 Net profit after taxation 363,120 291,165 275,062 145,645 Adjustment to reconcile net income to net cash provided by operating: Depreciation 330,186 230,911 115,016 101,375 Interest income (11,023) (15,905) (9,093) (14,595) Interest paid (Interest expense) 25,972 19,157 - - Impairment in receivables (72,500) (77,375) (43,500) (43,500) Dividend received - - - - Changes in assets and liabilities: (Increase)/decrease in stocks 4,219 (19,181) 3,682 (17,256) (Increase)/decrease in trade debtors (348,379) 87,429 (104,942) 180,969 (Increase)/Decrease in other debtors and prepayments 83,158 (192,803) 123,077 (202,275) Decrease/(increase) in due from related companies (237,896) (143,578) Decrease/(increase) in term Loans 4,044 (21,031) - - (Decrease)/increase in trade creditors (188,448) (20,082) (183,229) (12,600) Increase/(decrease) in other creditors and accruals 409,011 301,885 350,181 251,624 Increase/(decrease) in due to related companies 43,431 67,175 Increase/(decrease) in employee benefits (14,259) 20,950 (9,923) 22,171 221,982 313,954 46,802 189,508 Net cash provided by operating activities 585,102 605,120 321,864 335,154

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 20. RECONCILIATION OF CASH AND CASH EQUIVALENTS 2018 2017 2018 2017 Dec-18 Dec-17 Dec-18 Dec-17 Cash balances 1,023 4,771 977 4,357 Cash-in-transit 60,891 72,454 57,802 70,733 Bank Current Account 129,509 165,738 64,520 45,692 Short term deposits 132,138 377,419 131,987 316,508 21. EMPLOYMENT AND EMPLOYEES 323,561 620,383 255,287 437,290.1 Staff Average number of persons employed in the financial year under review and the staff costs were as follows: Number Number Number Number Managerial 7 7 4 4 Senior staff 50 41 34 31 Supervisors 223 229 60 62 Junior staff 1,690 1,572 176 164 1,970 1,849 274 261 Staff costs: Salaries, wages and other benefits 1,400,312 1,238,581 597,958 502,684 Staff pension and gratuity 132,442 132,796 45,201 45,201.2 Employees remunerated at higher rates, excluding allowances: 1,532,754 1,371,378 643,159 547,885 N N Number Number Number Number 140,001-210,000 1,505 1,445 163 160 210,001-360,000 407 348 66 59 360,000-900,000 49 48 38 36 900,001-1,700,000 6 5 4 3 1,700,001-2,011,000 3 3 3 3 1,970 1,849 274 261

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 22. Compensation of key management personnel of Red Star Express 2018 2018 2018 2018 DEC MAR DEC MAR.1 Fees and sitting Allowances 3,089 4,118 3,089 4,118 Executive compensation 3,078 3,908 3,078 3,908 Other Directors and benefits 6,754 8,577 6,754 8,577 Fees and emoluments disclosed above include ammount paid to: 12,920 16,603 12,920 16,603 Chairman 1,616 2,155 495 660 The highest paid Director earned 11,655 15,540 827 3,307.2 The number of Directors excluding the Chairman whose emoluments were within the following ranges were: N N Number Number Number Number Below N1,000,000 1,000,000-2,000,000 5 5 5 5 2,000,001-3,000,000 - - - - 3,000,001 and above 3 3 3 3 23. GUARANTEES AND OTHER FINANCIAL COMMITMENTS.1 Contingent liabilities As at 31st December 2018, there were no contingent liabilities. The Directors are of the opinion that, based on the Solicitors' advice, no material loss will arise from them. Consequently, no provision has been made in these consolidated financial statements for the amount..2 Financial commitments The Directors are of the opinion that all known liabilities and commitments which are relevant in assessing the Company's state of affairs have been taken into account in the preparation of these consolidated financial statements under review..3 Performance Bond accepted a performance bond of N50 million (2018- N50 million) in favour of Nigeria Customs Service.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 24. SUPPLIERS 's significant suppliers are mainly local. Some of the major suppliers are: Kungo-Rock Investments Limited Chita Express Limited Aegis Core Limited Knight Pride Int'l Limited Air France British Airways is not associated with the suppliers. 25. POST BALANCE SHEET EVENTS The Directors are of the opinion that there were no significant post balance sheet events which would have had any material effect on the balance sheet and the profit for the period ended on that date, which have not been adequately provided for or disclosed in the consolidated financial statements. 26. RELATED PARTY TRANSACTIONS a. Parent and ultimate controlling party The consolidated financial ststements include the financial statements of Red Star Express Plc and the subsidiaries listed below % Red Star Freight Limited 100 Red Star Logistics Limited 100 Red Star Supports Services Limited 100 b. The companies receive payments from customers on behalf of each other and these are transferred accordingly. The balances due from/to the related companies which are disclosed in the balance sheet are as follows: 2018 2018 2018 2018 DEC MAR DEC MAR Due from related company Red Star Freight Limited 195,228 112,000 Red Star Logistics Limited 698,073 543,405 Due to related companies 893,301 655,405 Red Star Supports Services Limited 228,727 185,296 228,727 185,296

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 27. Earnings Per Share Basic Earnings Per Share The calculation of basic earnings per share at 31st December 2018 for the company was based on the profit attributable to ordinary shareholders of N275 million and a weighted average number of ordinary shares outstanding of 589.5 million for the company. While the group EPS calculation was based on the profit attributable to the group shareholders of N363 million and a weighted average number of ordinary shares outstanding of 589.5 million shares. Current Period Comparative Period Current Period Comparative Period Interim Period Year to Date Interim Period Year to Date Interim Period Year to Date Interim Period Year to Date Oct'18 - Dec'18 Apr'18 - Dec'18 Oct'17 - Dec'17 Apr'17 - Dec'17 Oct'18 - Dec'18 Apr'18 - Dec'18 Oct'17 - Dec'17 Apr'17 - Dec'17 Profit for the year attributable to shareholders 123,557 363,120 71,161 291,165 96,810 275,062 50,131 145,645 Number Number Number Number Number Number Number Number Weighted Average number of ordinary shares outstanding 589,497 589,497 589,497 589,497 589,497 589,497 589,497 589,497 Earnings per share (Kobo) 21 62 12 49 16 47 9 25 28.COMPARATIVE FIGURES Certain prior year's figures have been reclassified in line with current year's presentation for more meaningful comparison. 29. Segment Information Segment Statement of Segment Statement of Comprehensive Income Courier Logistics Freight Support Services Group Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date Apr'18 - Dec'18 Apr'17 - Dec'17 Apr'18 - Dec'18 Apr'17 - Dec'17 Apr'18 - Dec'18 Apr'17 - Dec'17 Apr'18 - Dec'18 Apr'17 - Dec'17 Apr'18 - Dec'18 Apr'17 - Dec'17 N'000 N'000 Revenue 4,261,191 3,152,514 1,325,269 1,188,111 653,152 629,751 1,318,105 1,231,815 7,557,718 6,202,192 Total Revenue 4,261,191 3,152,514 1,325,269 1,188,111 653,152 629,751 1,318,105 1,231,815 7,557,718 6,202,192 Cost of Sales (3,067,113) (2,225,621) (1,096,697) (917,731) (555,682) (523,751) (1,058,804) (963,906) (5,735,661) (4,589,558) Other Income 4,824 1,117 449 1,902 - - 1,341 684 6,613 3,703 Depreciation & Amortisation (55,088) (55,171) (6,172) (5,466) (456) (343) (646) (963) (60,255) (61,942) Other Operating Expenses (746,689) (673,253) (161,693) (160,697) (71,513) (60,454) (188,260) (184,419) (1,219,467) (1,122,957) Finance Income 9,093 14,595 1,930 1,310 - - - - 11,023 15,905 Finance Charges (1,716) - (14,642) (11,676) (2,043) (377) (14,140) (9,787) (25,972) (19,157) Profit before income tax 404,503 214,182 48,444 95,753 23,458 44,826 57,596 73,424 534,000 428,186 Income tax expence (129,441) (68,538) (14,533) (30,641) (7,037) (14,344) (17,279) (23,496) (170,880) (137,020) Profit after tax 275,062 145,645 33,910 65,111 16,421 30,482 40,317 49,928 363,120 291,166 Segment Statement of Financial Position Dec-18 Mar-18 Dec-18 Mar-18 Dec-18 Mar-18 Dec-18 Mar-18 Dec-18 Mar-18 N'000 N'000 Non Current Assets 1,192,701 1,055,124 557,128 485,785 4,222 6,147 158,596 152,123 1,537,079 1,325,113 Current assets 2,895,236 2,812,002 1,068,285 948,674 431,755 381,419 430,441 367,492 3,733,160 3,668,882 Total Assets 4,087,936 3,867,126 1,625,413 1,434,459 435,977 387,566 589,036 519,615 5,270,239 4,993,995 Ordinary Share Capital 294,748 294,748 225,000 225,000 100,000 100,000 49,065 49,065 294,748 294,748 Share Premium 296,433 296,433 - - - - - - 296,433 296,433 Retained Earnings 1,321,872 1,282,609 299,199 265,289 123,557 107,136 321,703 281,386 2,063,725 1,936,404 Non Current Liabilities 98,243 108,166 183,742 174,162 910 910 50,503 71,733 311,230 336,618 Current liabilities 2,076,639 1,885,170 917,472 770,008 211,510 179,520 167,765 117,431 2,304,102 2,129,791 Total Equity & Liabilities 4,087,936 3,867,126 1,625,413 1,434,459 435,977 387,566 589,036 519,615 5,270,239 4,993,995