The following acttachment is the annual report of NESTLE NIGERIA PLC.

You are required to per form comparative financial analysis of the company for the two years by calculating the following ratiois :

A. Break even point and Safety margin

B. Degree of operating leverage and Degree of Financial leverage

C. Success probability factor

D. Return on Equity and Return on Assets

E. Altman's Z-score

F. Du-pont ratios - depomposition of performance

G. Economic value added

H. The Price Earning ratio (PER)

I. The share price projection

Based on your analysis above will you recommend NESTLE shes for a long term investment ?

Performance Indicators Investments (NGN billini) Investment N13.4Billion Investments of NGN13.4Bn in year 2019 N49.6Billion Investments of NGNA9.6Bn during the last five years Market Capitalization (NON billion) Market Capitalization Development Staff Development (NGN billion) Staff Development Performance Indicators Turnover (NGN billion) Turnover Development Operating Profit iNGN billion) Operating Profit Development Profit After Tax (NGN billion) Profit After Tax Development 198 increase in Operating profit between 2018 and 2019 despite cost pressures 147% Operating Profit growth of 1479 over the last five year 1. Reporting entity Nestl Nigeria PK ("the Company") is a Company damiciled in Nigeria. The address of the Companys registered office is at 22-24, Industrial Avenue, llupej., Lagos. The Company is listed on the Nigerian Stock Exchange. The principal activitiss of the Cormpany continue to be the marufacturing, marketing and distribution of food products incuding purificd water throughout the country. The Company also exports some of its products to other councries within Africa. 2. Basis of accounting (a) Statement of Compliance These financial statement: have been prepared in accordance with I-2s. They were duthorised for issue by the Company's Board of Directors on 28 February 2020. (b) Basis of measurement The financial statements have been prepared on historical cost basis except for the following: Llabilitios for equity-setted share-based payment arrangements: the present walue of the defined benefit abligation relating to long service awards. Inventory at lower of cost and nec realisable value (c) Functional and presentation currency Thcse financial statements are prescnted in Naira, which is the Companys functional currency All financial information presented in vaira has been rounded co the nearest tho.jsand except where othenwise indicated. (d) Changes in accounting policies and disclosures The Company applied IFRS 6 for the first cime. The nature and effect of the changes as a result of adoption of these new accourting standards are described in Note 4.1. This change in accounting policies was appled in accordance with transitional requirements of IF25 16 (I eases) Statement of Changes in Equity Attributable to equity holders of the company Statement of Financial Position 49/ Armual Report and Firlaricial Statements togetier wit. Di ec.us' arid Accitors' Report Statement of Profit or loss and other Comprehensive Income financial statements