Vision Statement - Lasco Jamaica

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Vision StatementTo become a global corporate leader, through innovation and entrepreneurship. Driven by a passion for excellence and compassion for our fellow man, we will make LASCO a world name, synonymous with integrity, value and service.

Mission StatementTo provide quality products and services to our customers, ensure profitability and promote employee development.

Being the best ... Always.

VisionMission

Values&

Annual Report | 2013

LASCO Distributors LimitedAnnual Report | 2013

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Contents

COMPANY INFORMATION

5 Notice of Annual General Meeting To adopt, receive and consider resolutions

6 Corporate Data LASCO divisions and their locations

7 Shareholders' Profile A report on the volume & percentage shareholdings in the Company

STATEMENTS

9 Five Year Financial Review

11 Chairman's Profile

13 Shareholders' Report 14 Directors' Profile

REPORTS

16 Corporate Governance

An outline of the responsibilities of the committees

18 Directors' Report

19 Executive Management Team

20 Management Discussion & Analysis Overview Financial Performance Risk Management Human Resources Marketing, Advertising & Promotions Corporate Social Responsibility

FEATURES

28 Marketing, Advertising & Promotions

FINANCIAL REPORT

44 Financial Statements

OTHER INFORMATION

76 Proxy Form

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ORDINARY BUSINESSOrdinary Resolutions1. Stock Option Plan

“THAT the following resolution be considered by the members and if thought fit be passed as an ordinary resolution of the Company:

BE IT RESOLVED: “THAT the directors be and are hereby authorized

to enter into a stock option plan for up to but not more than 5% of the issued ordinary shares of the Company with such of the employees of the Company as the directors might determine upon such terms and conditions and subject to such rules and regulations as the directors shall in their absolute discretion determine and to execute such deeds agreements documentation or other assurances as might be required and to enter into such engagements and arrangements as might be necessary for the due operation and administration of such a plan.”

2. Audited Accounts

To consider and if thought fit, pass the following resolution:

“THAT the Audited Accounts for the year ended March 31, 2013 and the Reports of the Directors and Auditors, circulated with notice convening the meeting, be and are hereby adopted.”

3. Election of Directors

Article 97 of the Company’s Articles of Incorporation provides that one-third of the Directors, if their number is not three (3) or a multiple of three (3), the number nearest one-third (1/3), shall retire from office at each Annual General Meeting and Article 98 of the company’s Articles of Incorporation provides that the Directors to retire in every year shall be those who have been longest in office since their last election. The Directors retiring under these Articles are (Sir Kenneth Hall) and (Hon. Lascelles Chin) and being eligible, offer themselves for re-election.

The proposed resolutions are as follows:

To consider and if thought fit pass the following resolution: (i) “THAT Director, Sir. Kenneth Hall retiring

pursuant to Articles 97 and 98 of the Articles of Incorporation be and is hereby re-elected.”

To consider and if thought fit pass the following resolution:(ii) “THAT Director, Hon. Lascelles Chin, retiring

pursuant to Articles 97 and 98 of the Articles of Incorporation be and is hereby re-elected.”

4. Directors’ Remuneration


“THAT, the Directors remuneration shall be such amount as the Board of Directors, or any appropriate Committee of the Board of Directors, may determine, pursuant to Article 77 of the Company’s Articles of Incorporation.”

5. Appointment of Auditors and their Remuneration


“THAT Messrs BDO, having signified their willingness to serve, continues in office as Auditors of the Company until the conclusion of the next Annual General Meeting at remuneration to be agreed with the Directors.”

Special Resolution

1. It is desirable that the number of Directors be increased from six (6) to twelve (12) and that the Articles of the Company be amended to facilitate this, in consequence of which the following resolution is proposed as a special resolution of the company:

BE IT RESOLVED:

“THAT, Article 76 be and is hereby amended by deleting the word and number “six (6)” and inserting in their stead the word and number “twelve (12)” so that the Article 76 shall henceforth read as follows:

76. Unless otherwise determined by a general meeting, the number of directors of the Company shall be not more than Twelve (12).”

Dated this 9th day of August 2013BY ORDER OF THE BOARD OF DIRECTORS

.............................................. Vincent A. ChenCOMPANY SECRETARY

NOTICE IS HEREBY GIVEN that the Annual General Meeting of LASCO DISTRIBUTORS LIMITED will be held at the Terra Nova All-Suite Hotel, 17 Waterloo Road, Kingston 10 on Monday, September 30, 2013 at 11:30 am. The proposed resolutions are as follows:

NOTE: A Member of the Company entitled to attend and vote at this meeting is entitled to appoint another person as his/her Proxy to attend and vote in his/her stead, and a Proxy need not be a Member. A Form of Proxy is enclosed for your convenience.

Notice of Annual General Meeting



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REGISTERED OFFICELASCO Distributors Limited 27 Red Hills RoadKingston 10Jamaica, W.I.Tel: (876) 749-5272Fax: (876) 749-2966Website: www.lascojamaica.com

SEGMENT LOCATIONLASCO PharmaceuticalDivision27 Red Hills RoadKingston 10 Jamaica, W.I.Tel: (876) 968-3456-65; (876) 929-7633Fax: (876) 929-7622

LASCO Consumer Divis ionWhite Marl St. CatherineJamaica, W.I.Tel: (876) 749-2967-9; (876) 749-5272Fax: (876) 749-2966

BOARD OF DIRECTORSExecutive Directors

Hon. Lascelles Chin, O.J., C.D.Chairman

Mr. Peter ChinManaging Director

Non-Executive DirectorsDr. Eileen Chin, MBAMr. Anthony V. ChangMr. J.A. Lester Spaulding, C.D., J.P. Sir Kenneth Hall, O.N., G.C.M.G., O.J.

LIST OF SENIOR OFFICERSHon. Lascelles Chin, O.J., C.D. Chairman

Mr. Peter Chin Managing Director

Mrs. Cecilia LewisFinancial Controller

Mr. Vincent ChenCompany Secretary

ATTORNEYS-AT-LAwMr. Vincent ChenChen, Green & Company 6 Haining Road Kingston 5Jamaica W.I.

BANkERSFirst Caribbean International Bank Jamaica Limited23-27 Knutsford BoulevardKingston 5Jamaica W.I.

Bank of Nova Scotia Jamaica LimitedCnr. Duke & Port Royal Streets KingstonJamaica W.I.

National Commercial Bank Jamaica Limited 94 Half Way Tree RoadKingston 10 Jamaica W.I.

AUDITORSBDO26 Beechwood Avenue Kingston 5Jamaica W.I.

REGISTRAR AND TRANSFER AGENTSJamaica Central Securities Depository 40 Harbour StreetKingstonJamaica W.I.

Corporate Data

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1. J. A. Lester Spaulding

2. Anthony Chang

3. Peter Chin 4. Lascelles Chin

5. Kenneth Hall

6. Eileen Chin

150,300

400,300

200,000101,933,778

75,300

1,320,410

0.0446

0.1189

0.059430.2795

0.0224

0.3922

Shareholdings of Directors and Connected Partiesas at March 31, 2013

TOP TEN SHAREHOLDERSas at March 31, 2013

1. East West (St. Lucia) Limited

2. Lascelles Chin

3. Mayberry Managed Clients Account

4. Catherine Adella Peart

5. Huixiong Liao

6. Generation 4 Company Limited

7. Wayne M. Chin

8. Joel Izquierrdo Gonzales

9. Hilda Gonzalez Rosales

10. JCSD Trustee Services Ltd. - Sigma Venture

* Hilda Gonzalez-Rosales

* Kamla Chin

* Liudmila Gonzalez Diaz

* Rheima C. Holding Hall

*Hilda Gonzalez Rosales

164,955,126

101,933,778

4,374,028

3,980,914

4,516,030300,000

4,816,030

2,215,526

2,070,000 283,300

2,353,3002,000,000

3002,000,300

1,711,860

1,703,200

NAME JOINT HOLDERS VOLUME PERCENTAGE

NAME PRIMARY HOLDER POSITION *CONNECTED PARTY VOLUME PERCENTAGE

NAME PRIMARY HOLDER POSITION *JOINT HOLDER UNITS PERCENTAGE

49.00

30.28

1.28

1.23

1.300.081.38

0.66

0.600.080.680.590.000.590.51

0.50

1. Cecilia Lewis Senior Officer 20,300 0.006

Shareholdings of Senior Officers and Connected Partiesas at March 31, 2013

*Connected Party

Shareholders' Profile



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Five Year Financial Review

2013 2012 2011 2010 2009 (‘000’) (‘000’) (‘000’) (‘000’) (‘000’)

Number of Shares Issued *3,366,431 *3,366,431 336,643 74,072 74,072

Stock Holders Equity ($’000) $1,887,101 $1,464,428 $961,174 $509,657 $388,406

Percentage increase over prior year 28.9% 52.4% 88.6% 31.2% 25.6%

Market Capitalisation $3,534,752,708 $4,046,450,242 $1,077,257,968

Total Borrowings $45,778 $0 $2,812 $288,402 $392,355 INCOME STATEMENT 2013 2012 2011 2010 2009 (‘000’) (‘000’) (‘000’) (‘000’) (‘000’) Turnover ($’000) $8,255,354 $7,460,509 $6,756,555 $5,842,917 $5,080,681

Percentage increase over prior year 10.65% 10.42% 15.64% 15.00% -0.38%

Profit before Taxation ($’000) $506,833 $570,711 $406,250 $142,577 $133,521

Percentage increase over prior year -11.2% 40.5% 184.9% 6.8% 36.0%

Profit after Taxation ($’000) $506,833 $550,377 $306,398 $97,721 $78,813


Net Profit Attributable to Stockholders ($’000) $506,833 $550,377 $306,398 $98,073 $79,128


IMPORTANT RATIOS

Debt to Equity Ratio 0.02 0.00 0.00 0.57 1.01

Return on Equity 26.86% 37.58% 31.88% 19.24% 20.37%

Profit before Taxation/Sales 6.1% 7.6% 6.0% 2.4% 2.6%

Return on Asset 16.63% 23.80% 16.55% 4.45% 3.74%

Quick Ratio 1.22 1.45 1.15 0.95 0.76

Current Ratio 2.33 2.33 1.86 1.39 1.33

Return on Sales 6.1% 7.4% 4.5% 1.7% 1.6%

Shareholders Equity per Stock unit-JA$ *0.56 *0.44 2.86 6.88 5.24

Earning per Stock Unit-basic-JA$ *$0.15 *$0.16 $1.02 $0.36

Closing Stock Price-JSE :JA$ *$1.05 *$1.20 $3.20

Price Earning Ratio 6.97 7.35 3.14

FIRST FINANCIAL YEAR OF DATA 2009

NUMBER OF YEARS OF DATA 5

REPORTING VALUES $000

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*Authorised - 3,630,000,000 Ordinary Shares of no par value. Stated Capital- Issued and fully paid- 3,366,431,150 Ordinary Shares of no par value 219,191 ($’000).

At an Extraordinary General Meeting held June 26th 2013, the Shareholders of LASCO Distributors Limited approved a resolution allowing each share of no par value whether issued or un-issued to be sub-divided into 10 shares. The Authorised and Issued shares indicated above reflect the stock split approved by the Shareholders.



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The Hon. Lascelles A. ChinCHAIRMAN OF THE BOARD



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Chairman's ProfileHonourable Lascelles A. Chin, Founder and Executive Chairman of the LASCO Affiliated Companies, is one of Jamaica’s most distinguished and respected entrepreneurs, a pioneering exporter, outstanding philanthropist, and a much honoured leader in Jamaica and the Caribbean.

Born in Bog Walk, St. Catherine, from an early age and from the onset of his career, Lascelles Chin demonstrated that he had a very clear understanding of the importance of accumulating capital and remaining focused on one’s vision. In 1956, he found opportunities in a variety of business sectors which included the sale of adhesives through his partnership with Henkel Limited. His balanced blend of business acumen, work experience and expertise resulted in the successful establishment of the LASCO Affiliated Companies in 1988. Guided by the dynamic leadership and vision of Lascelles Chin, in October 2010, LASCO became the first company in the history of Jamaica that had three affiliated companies listed at the same time on the Jamaica Stock Exchange.

A true humanitarian, with an endless passion and commitment to public service, Lascelles Chin has shared his vision and energy with his colleagues through dynamic leadership of

several organizations. He has served as the Past Chairman for the Jamaica Exporters’ Association (JEA) and the Bureau of Standards Foundation; Past Deputy Chairman for the Jamaica Promotions Corporation (JAMPRO); Past Director for the Bureau of Standards – Standards Council, the National Commercial Bank and the EXIM Bank. Hon. Lascelles Chin is the current Director of the University of the West Indies School of Nursing Advisory Board and the King’s House Foundation.

A beloved and highly respected leader and philanthropist, his contributions and benevolence have brought him many national and regional accolades, which include being inducted in the Private Sector of Jamaica (PSOJ) Hall of Fame in 2011; ranked among the Top Five Most Admired Business Leaders – Gleaner Commissioned Bill Johnson Poll; as well as being awarded The Most Admired Business Leader – CVM People’s Award 2009; the 2005 American Foundation for UWI Award - Outstanding Contribution to Business in the Caribbean & as a Caribbean Luminary and the 2004 Florida International University (FIU) Business Leader Award.



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Peter M. ChinMANAGING DIRECTOR

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Shareholders' ReportJamaica celebrated 50 years of independence in the year 2012 and Jamaicans became even more famous with the outstanding successes of our athletes at the 30th Modern Olympic Games held in London. This celebratory atmosphere was not without the consideration for the realities of the global economic issues and the continuing economic pressures at home. The depreciation of the local currency, low consumer confidence and speculation surrounding the International Monetary Fund (IMF) standby agreements contributed to a level of uncertainty in the environment. Jamaica has always been faced with challenges and at times insurmountable ones. Despite this, LASCO Distributors Ltd. remains determined and focused in its drive to meet its business objectives, which ultimately reaps positive results for the Jamaican economy.

Over the last financial year, the company was able to grow revenues and achieve over half a billion dollars in profits. The financial year ended March 31, 2013 with a turnover of $8.26B which was an increase of 10.7% or $794.85M over the prior year of $7.46B. Total comprehensive income was $506.8M, a reduction of 7.9% or $43.54M from $550.4M the previous year.

For the year in review, it was a mix of opportunities and accomplishments. The company was able to attract new principals as well as brands and bring them to market. There were also successes in growing the institutional business, strengthening of the distribution network, launching of new products and growth in key product categories. The year however was not without challenges as there were issues within the supply chain, unexpected maintenance costs and a one off adjustment due to customs duties that impacted negatively on overall performance.

The company has been very aggressive in growing core products within its own brand as well as those of principals represented, whilst also focusing on bringing new products to market annually. Last year there were new representations for over the counter (OTC) products, respiratory, cardiovascular, antiseptic and sanitizing solutions as well as baby care. While there were efforts to improve efficiencies and maintain costs, there were also deployments in staff resources, logistics changes and marketing activities to further build LASCO’s brand presence. These activities were necessary to ensure a managed path for our growth direction.

LASCO’s market positioning is to offer high quality products at affordable prices, providing overall value to Jamaican families; “LASCO - Everyday Family Values”. This approach has seen the company over the years expanding its brand presence and achieving market leadership in various categories. The business philosophy of providing value to Jamaican families integrates with the company’s strong commitment to social activities and community development through our corporate initiatives. In so doing, it is the company’s contribution for a better Jamaica today and for tomorrow.

For the near future, the company has several planned projects in the pipeline that will enhance growth in both divisions. This means increased product representation with Pharmaceutical Houses and bringing to market new products under the LASCO brand as well as other key brands.

To our customers and consumers, thank you for your support and ongoing patronage as we continue to deliver on our value proposition and expand our product offering. Thank you to our principals and supply partners for the high level of collaboration in this dynamic business environment.

Special thanks to our directors and staff for their support, dedication and enthusiasm in working to achieve the company’s objectives. As we look forward to our 25th year in business and to an exciting future in growing our presence, your continued commitment is essential.

Thank you our shareholders for your support and belief in us, as we remain committed to achieving growth and profitability.

Hon. Lascelles A. Chin OJ, CDEXECUTIVE CHAIRMAN

Peter M. ChinMANAGING DIRECTOR



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Mr. Peter ChinMANAGING DIRECTOR

Dr. Eileen Chin, MBANON-ExECUTIVE DIRECTOR

Peter Chin has served as Managing Director of LASCO Distributors Limited since November, 2011. He has developed a reputation for strong people-management skills and sound leadership. Mr. Chin’s deep commitment and loyalty to the LASCO brand have brought him steady advancement through the ranks over his fifteen years of service to the LASCO Affiliated Companies.

As a result of his well-rounded background and entrepreneurial energy, Mr. Chin has earned a series of appointments to key management positions, including Logistics Manager responsible for distribution & procurement, Marketing Manager and General Manager – Consumer Division.

A versatile executive, Mr. Chin has wide and effective experience in various functional areas such as procurement, operations, warehousing, distribution, inventory management and new-product development. He has also managed the oversight of mission-critical special projects at LASCO, spearheading the steering committee that implemented the system-wide ERP network software now in place at the Company.

Dr. Eileen Chin is the Managing Director and Executive Director on the Board of LASCO Manufacturing Ltd. She was born in Havana City, Cuba. She holds a post graduate degree in Medicine from the Havana University’s School of Medicine. She specialized and taught histology to medical students from 1993 to 1998 at the Giron School of Medicine, Havana City. Dr. Eileen Chin migrated to Jamaica in 1998.

Dr. Chin commenced working within the LASCO Group of Companies in 1999 in various capacities including the Marketing Department - Label Development, Export Department - Central and South American Sales Representative and Export Director. In 2007 she was appointed General Manager of Lasco Foods (Successors) Limited and in 2009 she was appointed Managing Director of the company before it changed its name to LASCO Manufacturing Limited.

Dr. Eileen Chin holds an MBA in Global Management. She attended knowledge and skills development training in Advanced Negotiation, Risk management and Lean Six Sigma. She is also a member of the Board of Directors of LASCO Financial Services Limited.

DIRECTORS' PROFILES

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The Most Hon. Professor. Sir Kenneth Hall, O.N. G.C.M.G, O.J.NON-ExECUTIVE DIRECTOR

Mr. Anthony V. ChangNON-ExECUTIVE DIRECTOR

Mr. J.A. Lester Spaulding, C.D., J.P.NON-ExECUTIVE DIRECTOR AND MENTOR OF THE BOARD

Mr. Spaulding, currently the non- executive Chairman of the board of directors of the RJR Communication Group, started his 42 year career in Business as an accountant, rising to the position of Managing Director, guiding the company operationally as its CEO for 30 years up to 2008. This includes listing the parent company Radio Jamaica Ltd on the Jamaica Stock Exchange after a successful IPO in September 1991. He also serves on the Boards of other commercial institutions including JN Money Services Ltd, Guardsman Communications, LASCO Manufacturing Company, LASCO Distributors Ltd and Scotish Masonic Association Ltd. He is very much involved in community service and now serves as a Director of the Private Sector Organization of Jamaica’s (PSOJ) Crime Prevention Fund (Crime Stop), Peace and Love in Schools (PALS) and the Caribbean Community of Retired Persons (CCRP).

Mr. Spaulding serves as a mentor for the Company for the purposes of the Rules of the Jamaica Stock Exchange Junior Market. As such, he is responsible for advising the Board on the implementation of adequate procedures, systems and controls for corporate governance, financial reporting and the release of timely information to the market.

Mr. Spaulding is a member of the Audit and Remuneration Committees of the Company, as required by the Junior Market Rules for the purposes of good governance.

The Most Honourable Professor Sir Kenneth Hall holds a Doctorate of Philosophy Degree in history from Queen’s University, Ontario, Canada. He has served as Governor General of Jamaica from 2006 – 2009. Prior to serving as Governor-General, he was Pro Vice Chancellor and Principal of the University of the West Indies, Mona Campus. In 2009 he was appointed an Honorary Distinguished Fellow of the Mona School of Business.

The Most Honourable Professor Kenneth Hall worked to advance regional integration during his tenure at the CARICOM Secretariat from 1975 to 1977 and 1994 to 1996. He is a prolific writer and has published several books, articles and reviews. In 2004 he was awarded the Order of Jamaica for his contribution to education and regional development.

Mr. Chang, a non-executive Director of the Company is a graduate of the University of Western Ontario, Canada. He holds a Bachelor of Arts Degree and has also completed many professional courses. He was awarded a Hubert Humphrey fellowship by the American University of Washington, D.C. (1996). Prior to joining the LASCO affiliated entities, Mr. Chang was the Managing Director of T. Geddes Grant Limited.

Mr. Chang is also a board member of various local institutions and companies including Scotia Group Limited, Scotia DBG Investments Limited and Digicel Jamaica Limited. In the past he was President of the Jamaica Chamber of Commerce, Chairman of Legislation and Regulation (a USAID and Government of Jamaica private sector project which, amongst other things, funded the reorganization of the local Taxpayer Audit and Administration Department’s audit programmes and created the Caribbean’s first Developmental Approval Centre at NEPA).

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The Board of Directors of LASCO Distributors Limited is responsible for good corporate governance. To this end, the Board is directly responsible for ensuring accountability, objectivity and transparency in the Company’s activities, all of which are essential to the success of achieving increased shareholder confidence and maximizing shareholder value. In fulfilling its responsibility, the Board guarantees compliance with the Company’s policies and procedures; the rules of the Jamaica Stock Exchange Junior Market and most importantly, the laws and regulations of the land. Additionally, the Board fosters and encourages a culture of good ethical practices throughout the Company.

BOARD COMPOSITIONAs at March 31, 2013, a total of six members comprised the Company’s Board, two executive and four non-executive Directors. The members are experienced and qualified individuals with diverse skills and knowledge from varying professions. The expertise of the Board members guarantees that the decisions made are in the best interest of shareholders and the Company’s success alike.

BOARD SUB-COMMITTEESThere are two sub-Committees, the Audit and Compliance Committee and the Compensation Committee. The members were appointed by the full Board of Directors and any board member may, by invitation, attend sub-committee meetings.

The Audit and Compliance CommitteeThis Committee, chaired by Mr. J.A. Lester Spaulding, has direct responsibility to assist the Board by overseeing the financial reporting and the auditing process of the Company’s activities. The Committee meets quarterly and continues to be guided by its established terms of reference to ensure:

- good fiscal discipline- open and accurate financial reporting and- timely disclosures

For the financial period under review, the Committee appointed Mayo Holdings Limited to function on a co-sourcing basis to provide internal audit services. At the beginning of the year, the Committee reviewed and approved the audit plan for the financial year. In an effort to maintain and improve organizational procedures and controls for tracking the Company’s income and expenditures, the internal audit department, through the appointed internal auditor, reports to the Committee at its quarterly meetings.

During the periodic meetings, the members of the Committee also analyze the quarterly interim financial statements and the annual audited financial statements in accordance with the rules of the Jamaica Stock Exchange Junior Market and International Accounting Standards, and makes recommendations to the full Board of Directors for publication.

Corporate GovernanceAs at March 31, 2013

Mr. J.A. Lester Spaulding, C.D., J.P. Chairman

Audit & Compliance Committee

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The Compensation Committee This Committee has responsibility to advise the Board on all matters relating to the compensation of the Executive Chairman, the Managing Director and the non-executive members of the Board. The Committee is chaired by Professor, the Honourable, Sir Kenneth Hall and its terms

of reference require that the committee meets at least once per year to evaluate the performance of the Executive Chairman and the Managing Director. For the financial year under review, the committee met as mandated and made their recommendation to the full Board of Directors.

Meetings AGM BOD Compensation Audit Committee CommitteeNo. of Meetings 1 6 1 5Lascelles Chin 1 6 1 5Peter Chin 1 6 - 5Eileen Chin 1 6 - -Anthony Chang - 4 - -J. A. Lester Spaulding 1 6 - 5Sir Kenneth Hall 1 6 1 4

The following table outlines the Composition of each Committee.

Meetings Compensation Committee Audit Committee

Lascelles Chin √ √Peter Chin - -Eileen Chin - -Anthony Chang - -

J. A. Lester Spaulding √ √Sir Kenneth Hall √ √

Below is a summary of the register in respect of the meetings for the financial year ended March 31, 2013.



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Directors' ReportAs at March 31, 2013

The Directors of LASCO Distributors Limited are pleased to present their report for the financial year ended March 31, 2013.

FINANCIAL RESULTS The Statement of Comprehensive Income shows total Comprehensive Income of Five Hundred and Six Million, Eight Hundred Thirty Three Thousand Dollars (J$506,833,000). The Company listed its shares on the Junior Market of the Jamaica Stock Exchange on October 12, 2010 and for this reason is entitled to a remission of Corporate Income Tax for a period of ten years from the date of listing as follows:

Years 1 – 5 100%Years 6 – 10 50%

DIRECTORSThe Directors of the Company as at March 31, 2013 are Lascelles Chin (Executive Chairman), Peter Chin (Managing Director), Eileen Chin (Non-Executive), J.A. Lester Spaulding (Non- Executive), Kenneth Hall (Non-Executive) and Anthony Chang (Non-Executive).

In accordance with the Articles of Incorporation of the Company (Hon. Prof. Sir Kenneth Hall and Hon. Lascelles Chin) shall retire by rotation and being eligible, will offer themselves for re-election.

AUDITORS

The Auditors of the Company, BDO, of 26 Beechwood Avenue, Kingston 5, Jamaica, have expressed their willingness to continue in office as Auditors of the Company until the conclusion of the next Annual General Meeting.

THANk YOUThe Directors wish to extend special thanks to our shareholders for the confidence that they have placed in LASCO Distributors Limited. We look forward to a continued rewarding relationship for the coming year and beyond.

We acknowledge and extend our appreciation to the committed efforts and hard work of the members of staff.

Thanks to our consumers, customers, suppliers and other stakeholders for your continued support.

Dated this 9th day of August 2013FOR AND ON BEHALF THE BOARD

Vincent A. ChenCOMPANY SECRETARY


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Sales, Marketing & Operations – Consumer: Peter Chin – Managing Director, Cecilia Lewis – Financial Controller, Jociane Berry – Purchasing Manager, Andrew Reid – Operations Manager, Sandra Russell – Human Resource Manager, Carrolyn Llewellyn – Sales Manager, Kelia-Gaye Dunbar - Marketing Manager, Richard Smith - Warehouse Manager. Sales, Marketing & Operations – Pharmacy: Hortense Edwards – General Manager, Jacqueline Morgan – Operations Manager, Joy Mitchell-Grant – LASMED District Manager, Andrea Cover – Pharmaceuticals Sales Manager (South Region), Francisca Anderson – Human Resource Manager , Michael Wehby – Key Account Manager, Eva Henry – Regulatory and Institutional Business Manager.

Support Services: Peter Hylton – Information Technology Manager, Ruel Thompson – Safety/Security and Community Relations Manager, Joel Gonzalez – Property Manager, Phyllis Sutherland-Johnson – Credit Manager, Marcia Brown – Quality Control Manager.

Executive Management Team



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Management Discussion & Analysis

COMPANY OVERVIEw

LASCO Distributors Limited is a leading distribution company in Jamaica. The business was established by the Honourable Lascelles Chin in September 1988 and in a relatively short time, the company has rapidly increased its market presence by offering quality products to market at competitive prices. This market positioning and the focus on satisfying consumer needs have led LASCO to become market leaders in several major categories in the industry. The company comprises of two divisions - the Consumer Division and the Pharmaceutical Division. The segmentation is due to product specialization and it allows for greater focus to meet our customers’ demands.

The product distribution spans a wide range of fast moving consumer goods from the Consumer Division which distributes food, beverage, personal care, adult incontinence and home care products. The supply network also includes the distribution of ethical and over the counter (OTC) pharmaceutical products, animal health and equipment for major international brands, as well as its own private brands from the Pharmaceutical Division.

The distribution channels include supermarkets, chain stores, wholesalers, small format stores, schools, pharmacies, government institutions and health care facilities. The product distribution comprises several hundred accounts and over 3,000 SKU’s.

STRATEGIC DIRECTIONAREAS OF FOCUSGrowth

One of the company’s strategies is to attain growth by product representation of key principals and building out the LASCO branded range of products. For the year we have signed exclusive distribution agreements for generic pharmaceutical products from MSN Labs, antiseptic and solutions from Sirmaxo, a de-congestion range of products (Olbas) and launched LASCO Baby Yum Infant cereal in the baby category. There are very good opportunities to increase presence in the respective distribution channels of our core products and we have a robust pipeline to bring new products to markets.

THE LASCO BRAND

From the introduction of the LASCO brand to the market over 24 years ago, the company has achieved much success in introducing many products in various segments of the fast moving consumer goods (FMCG) category, over the counter (OTC) and pharmaceutical products. Today LASCO Distributors Limited is the only local company in Jamaica that has such a diverse spectrum of products under its own private label. Apart from the successful entry to market in these segments, there was greater success in achieving market leader position in some categories. This was achieved through vision, hard work and execution. We are cognizant that more work needs to be done and greater opportunities to be capitalised on in order to attain the ultimate goal of making LASCO a brand of choice.

Mr. Peter ChinManaging Director

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SERVICE DELIVERYThe Customer - The Consumer

Service delivery to our customers is paramount and the ability to reach and engage our consumers with our products is vital. There were a number of key areas where measures were implemented to achieve this: improvement in technology, adjustments within our go to market teams and greater trade and consumer interaction.

There were improvements in our sales force automation (SFA) system which enabled greater access to information, speed and the flexibility for use by our sales teams. The end result was increased service levels to our customers. The service teams were strengthened and redeployed for greater efficiency. There were also enhancements in the interaction with our customers with programmes to drive traffic to the stores and stimulating pull from the shelves via various promotional activities.

Efficiency & Cost ControlBased on LASCO’s approach to market, a lean and efficient operation is required to maintain that competitive advantage. Management is cognizant of this and continues to implement measures to control expenses and improve efficiencies. For the past year, there has been some strengthening of our staff resources for the core business and up-front costs for specialised teams to promote recently launched products.

FINANCIAL PERFORMANCE

Revenue Revenue for the company at the end of the financial year was $8.26B, an increase of 10.7% or $794.8M over the previous year of $7.46B. Revenue performance was impacted by unavoidable supply chain issues for some key categories and general sluggishness in the economy.

Despite the stock shortages, the company had successes in increasing overall revenues due to increased marketing presence in key distribution channels, marketing activities for targeted products, new product additions and reorganization of our sales and marketing teams.

Total Company Revenue


Total Company Revenue2013 vs. 2012 ($M)

2013 2012

10.7%

7,460.5

8,255.4



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GROSS PROFIT

Gross profit was $1.64B, a 4.0% growth over the previous year, while gross profit margin was 19.9%, a reduction from 21.1%. This reduction in gross profit margin was due to increased sales volumes to institutions at lower margins, a one off adjustment to cost of sales and the impact of the volatility of the exchange rate.

2012/2013 2011/2012 Change % Change $’000’ $‘000’ $’000’

Revenue 8,255,354 7,460,509 794,845 10.7%

Gross Profit 1,641,263 1,577,395 63,868 4.0%

Gross Profit % 19.9% 21.1% -1%

Operating Expenses 1,162,371 1,023,647 138,724 13.6%

Op/Ex to Sales 14.1% 13.7% 0.4%

Profit From Operations 513,050 573,546 (60,496) -10.5%

Non-Operating Expense 6,217 2,835 3,382 119.3%

Profit Before Taxation 506,833 570,711 (63,878) -11.2%

Taxation - 20,334 (20,334) -100.0%

Net Profit Per Year 506,833 550,377 (43,544) -7.9%

Earnings Per Share $1.51 $1.63 -$0.12 -7.4%

Financial Summary 2013 vs. 2012

Total Company Gross Profit2013 vs. 2012 ($M)

2013 2012

4.0%

1,577.4

1,641.3

Other Income2013 vs. 2012 ($M)

2013 2012

72.5% 19.8

34.2

TOTAL COMPREHENSIVE INCOME

Total comprehensive income was $506.8M, a reduction of 7.9% compared to the previous year. Profit performance was negatively impacted by short supplies, reduced profit margins and increased expenses.

OTHER INCOME

Other Income grew by 72.5% to $34.2M. This is for income earned from interest and commission earned from sales to key institutions.


Adjustment after Share Split 2013

STATED CAPITAL-

ISSUED AND FULLY PAID 3,366,431 3,366,431

NET PROFIT 506,833 550,377

EARNINGS PER STOCK UNIT 0.151 0.163

2012

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ADMINISTRATIVE, SELLING & PROMOTIONAL ExPENSES

The company’s operating expenses was $1,162.4M, an increase of $138.7M or 13.6%. This increase was due largely to Staff costs and Other Administrative costs.

Staff costs increased by $87.1M, as the company strengthened several areas to ensure greater presence in the market and some of the staff deployments were to support new product launches. Other Administrative costs increased by $31.2M. This was due to increased cost of utilities and some unplanned maintenance costs due to the passage of Hurricane Sandy.

Advertising and Promotional expenses increased by 16.8%. This was largely due to increased efforts in marketing activities to strengthen LASCO’s market presence. With these changes, there was an increase in the operating expenses to sales ratio, which moved from 13.7% last year to 14.1% for the year ending March 31, 2013.

2012/2013 2011/2012 ChangeTotal Selling, Admin & Other: $’000’ $’000’ %

Staff Costs 679,185 592,037 14.7%

Other Admin Costs 165,827 134,613 23.2%

Insurance 23,513 21,278 10.5%

Fees 26,036 49,944 -47.9%

Advertising & Promotion 171,510 146,874 16.8%

Stationery 10,023 7,400 35.4%

Other Costs 86,277 71,501 20.7%

Total Selling, Administrative & Other Expenses 1,162,371 1,023,647 13.6%

Total Selling, Administrative & Other Expenses 2013 vs. 2012 ($M)

2013 2012

13.6%.

1,023.6

1,162.4


Staff Cost

Other Admin Cost

Insurance

Fees

Advertising &Promotion

Stationery

Other Costs

Total Selling, Administrative and Other Expenses & % ContributionFY 2012/2013

7.4%0.9%

14.8%

2.2%2.0%

14.3%

58.4%



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PROFIT FROM OPERATIONS

Profit from operations was $513.1M compared to $573.5M the previous year, a reduction of 10.5% or $60.5M. As a ratio of net sales, profit from operations was 6.2% compared to 7.7% last year.

There was an increase in finance costs of $3.4M as management continues to meet operational requirements.

FINANCIAL POSITION

Non-Current assets were $348.2M compared to $338.3M to period ending March 31, 2012.

For current assets, there was an increase of 36.8% over the corresponding period ending the financial year at $2.7B. This was largely due to an increase in Inventories and Trade and Other Receivables.

Inventories increased by $535.0M over the corresponding period as at March 31, 2012. This increase was due to inventory carried for key institutions and planned major promotional activities for key products which extended beyond the reported period.

For Trade and Other Receivables there was an increase of $315.2M over last year. This increase was due to extended credit arrangements to key institutions and increased promotional activity at the end of the fourth quarter. The ratio of receivables aged 0-30 days to total receivables decreased to 57.0%. This shift

Non-Current Assets2013 vs. 2012 ($M)

2013 2012

2.9%

338.3348.2

Profit From Operations2013 vs. 2012 ($M)

2013 2012

-10.5%

573.5

513.1

Current Assets2013 vs. 2012 ($M)

2013 2012

36.8%

1,974.3

2,700.2


Percentage (%) of Trade Receivables aged 0-30 Days

2013 vs. 2012

2013 2012

57

71

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Current Liabilities2013 vs. 2012 ($M)

2013 2012

36.9%

1,161.3

848.2

Revenue2013 vs. 2012 ($M)

2013 2012

9.3%

6,458.5

5,911.5

Profit Before Tax2013 vs. 2012 ($M)

2013 2012

1.9%

417.1 409.3

is due to growth in sales for the institutional business which has longer agreed payment terms. The management of the collections is critical and it is one of the inherent risk factors in the distribution business. The company continues to be within benchmark standard for the industry for non-institutional accounts.Current liabilities was $1.16B compared to $848.2M. This was as a result of an increase in Trade and Other Payables. This increase was due to supply agreements with our strategic partners in facilitating special contracts with key institutions.

ANALYSIS BY DIVISION

Consumer Division

For the financial year ending March 31, 2013, revenues for the Consumer Division grew by 9.2% ending the year at $6.5B and net profit before tax was $417.1M or a $7.8M increase over the previous year. For the consumer division, it was a satisfactory performance across brands but there were strong performances in some key categories where the company has gained considerable market share growth. This success was due to focus on increased market penetration in key distribution channels, aggressive marketing activities for targeted products, new product introduction and reorganizing of our go to market structure.




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PHARMACEUTICAL DIVISION

Revenues for the Pharmaceutical Division grew to $1.8B, an increase of 16.0% over the previous year. Net profit before tax was $89.8M or a decrease of 44.4% compared to the previous year. Profit performance was negatively impacted due to shortages of key products and a one off adjustment to cost of sales related to import duties.

For the Pharmaceutical Division, there was good growth in the institutional business. While profit margins were lower, presence in this channel was essential. There were also introductions to the market of cardiovascular and first to market generics in asthma care. This range of product adds diversity to the current portfolio of products. The division also began the distribution of the Olbas brand, a well-recognised range of products for decongestion and other exciting over the counter (OTC) products. The company’s animal health care products continue to experience healthy growth.

PHARMACEUTICAL PRINCIPALS REPRESENTED

Revenues2013 vs. 2012 ($M)

Profit Before Tax2013 vs. 2012 ($M)

2013

2013

2012

2012

16%

-44.4%

1.549.0

161.5

1,796.9

89.8

• Astra Zeneca• Bayer Schering Pharma • BSN Medical• Cipla• Cipla Veterinary• Community Drug Centre • CSL Behring AG• Fresenius Kabi• Latmedical• LASCO Vitamins

• LASMED• MSN• Neon• Novartis Pharma• Pharmascience• Roche Diabetes Care• Roche Diagnostics • Roche Servicios S.A. • Sirmaxo• Ziotis


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Risk management is a critical component in managing our business and is controlled by a structure which at the highest level involves oversight by the Audit Committee to ensure that our Corporate Governance objective of effectively managing risks is met. At the Organization level, our Senior Management Teams and Heads of Departments are responsible for identifying, evaluating, assessing, managing and tracking each risk.

In supporting our continued growth, we have strengthened our internal controls and the organizational structure for data management to enable greater efficiency and a proactive approach to managing risk with the availability of real-time information. This

technologically advanced approach to managing the process will ensure that changing circumstances are taken into consideration and best practices are applied.

For the year we have put in further measures to increase the security of our information and have completed the data protection infrastructure which will enable us to have business continuity in the event of any catastrophic occurrence. This coming Financial Year we aim to have an entirely technology based process to manage this programme.

The Company will continue to manage risks to protect its employees, assets and the interests of its stakeholders and

will maintain a proactive, long-term and sustainable enterprise-wide risk management strategy.

SIGNIFICANT EVENTS SUBSEqUENT TO YEAR- END At an Extraordinary General Meeting held June 26, 2013, the Shareholders of LASCO Distributors Limited passed a resolution sub-dividing each share of no par value whether issued or unissued into 10 shares of no par value. The Ex-Date was July 5, 2013 and the Record date July 9, 2013 at which time the shares began trading at J$1.65. The numbers of issued shares now stand at 3,366,431,150 and Earnings per share of $1.51 cents based on financial statements for year ended 31 March 2013.

RISk MANAGEMENT


The LASCO story of success continues to be written based on the valued contributions of its highly dedicated team. The company continues to attract some of the best and brightest talent, inspired by its strong reputation of excellence, and through the provision of competitive compensation, as well as various employee services and benefits.

LASCO remains committed to ensuring that our team members are highly valued and respected, while giving the context and resources to experience growth, towards the achievement of personal and team satisfaction.

TRAINING & DEVELOPMENTLASCO recognises that the tremendous growth experienced by the company is due to a highly trained and comprehensively developed staff at all levels. The company continues to distinguish itself among its competitors, by ensuring dynamism, as a result of the growth and development of its employees. Team members are often encouraged to increase their knowledge and sharpen their skills by enrolling in Degree programmes and short courses, participating in workshops, seminars and conferences; and are often rewarded with internal career development opportunities.

The training and development of our staff ensures that LASCO continues to be the best, through the constant mastery of technology, keeping abreast and ahead of world trends, as well as the consistent improvement of team chemistry and leadership skills.

EMPLOYEE RELATIONS, wELFARE & TEAM ACTIVITIESLASCO is proud of its environment that fosters strong employee relations, built through engaging team activities. The Human Resources Department has co-ordinated a number of activities such as:

• Valentine’s Day Sweet Treat• Administrative Professional Day• Black History Month celebration• Healthy Lifestyle programme• Jamaica Day• Distributions of Bun & Cheese for the Easter Holidays • Mother’s Day Treat• Father’s Day Treat

The Human Resources Department continues to develop the potential of the LASCO staff, ensuring that the company continues to recruit and retain the best.

Human Resources



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Dynamism, innovation and a customer-centric approach are pillars on which LASCO Distributors Limited has built market dominance and market share growth. Our consumers continue to positively respond to the Company’s brands and products, even in very economically challenging times. LASCO remains committed to understanding and satisfying the Jamaican family’s demand for high quality products that deliver value and affordability.

Guided by these principles, the marketing team continues to successfully design strategic marketing, advertising and promotional campaigns that resonate with our consumers. LASCO continues to research and capitalise on market opportunities that result in the development of innovative products. Due to the Company’s emphasis on aggressive marketing, advertising and promotions, brand LASCO continues to be a dominant household name in Jamaica and the diaspora.

Marketing, Advertising& Promotions

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SyrupThe LASCO Syrup line was extended with the 750ml size in the following flavours: Fruit Punch, Pineapple and Melon Cherry.

CurvesThe company launched an exciting advertising campaign for the Curves sanitary napkin line. Television, radio and press were among the “Above- the- Line” advertising used to highlight the “new” cotton soft stay dry cover variants. This initiative was supported with on-the-ground promotions conducted in trade and non-trade locations.

Baby YumIn complementing the existing line of baby products distributed by LASCO Distributors Limited, the company introduced a tasty and nutritious infant cereal, LASCO Baby Yum, in five exciting variants. Launched into the trade in January 2013, the response to the cereal among doctors, nurses and nutritionists, as well as parents has been positive.

LASCO Hot & Spicy Mackerel In December 2012, LASCO introduced new sizes of its popular Hot & Spicy Mackerel, which was previously available only in a 155g size. The new sizes, 200g and 425g, provide a more convenient size option for larger households who enjoy LASCO’s Hot & Spicy Mackerel.

Product Launches



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LASCO Distributors Limited continues to collaborate with its customers on store brandings

that beautify the location and showcase LASCO’s range of products. The company maintains a strong presence in the wholesale and retail trade through store brandings across the island. In the past financial year, LASCO branded a range of locations, including:

• Shoppers’ Fair May Pen• Classic Super Shop, Morant Bay, St. Thomas• SNS Supermarket, Spalding, Clarendon

Marketing, Advertising & Promotions

LASCO branding at Classic Super Shop, Morant Bay, St. Thomas.

StoreBranding

LASCO Toothpaste wall branding at SNS Supermarket, Spalding, Clarendon.

LASCO branding at Shoppers’ Fair, May Pen, Clarendon.

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LASCO Food Drink Mix & Win PromotionIn its continued investment in the well known and loved LASCO Food Drink brand, LASCO Manufacturing, through its local marketing arm, LASCO Distributors Limited rewarded its loyal consumers for their purchases through the LASCO Food Drink Mix & Win consumer promotion. The Mix & Win promotion spanned the period of February to May 2013 and gave LASCO Food Drink consumers the opportunity to enter to win over $2.6 million in cash prizes using their product sachets.

At the close of the financial year, eight lucky fortnightly winners were chosen to win cash prizes of $15,000 each. Two of the lucky winners, Eve Lutan and Ricardo Ricketts were able to win $30,000 each as they earned an additional Featured Flavour prize for including the LASCO Food Drink featured flavour with their entries. All winners expressed surprise and gratitude at their good fortune in the competition.


LASCO Brand Representatives, Sherianne Thompson (left) and Renee Rose (far right), with the first set of LASCO Food Drink Mix & Win fortnightly winners.

A LASCO Food Drink consumer beams as she is presented with a LASCO Food Drink gift basket by Promotions Coordinator, Sandra Green in Montego Bay.

LASCO Brand Representatives, Sherianne Thompson (second left) and Nanda Dukharan (far right), with the second set of LASCO Food Drink Mix & Win fortnightly winners.

LASCO Merchandising Team Leader, Glenroy Gordon, explains to a consumer how to spin the wheel at the LASCO Food Drink Mix & Win on the ground promotion in Highgate St. Mary.



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The Pharmaceutical DivisionLASCO Pharmaceutical Division represents some of the most respected drug houses in the world. Some of these are Bayer Schering Pharma, Novartis, Roche, AstraZeneca, Pharma Science, Sirmaxo, Latmedical, Cipla, Ziotis, BSN Medical, Cipla, Fresenius Kabi, CSL Behring, LASMED, and new principals, Neon and MSN Laboratories Limited. Six new products were launched during the year, namely Olbas, Kalms, Teangi Tea Tree, Pediatric Electrolyte, Spenco Sandals and Sundries.

LASCO Pharmaceutical Division has maintained a steady presence at several health fairs and wellness oriented activities, which include the annual Pharmaceutical Society of Jamaica Retreat, University Diabetes Outreach Programme, Health Home and Garden Expo and the LASCO/NAJ Nurse of the Year and Nursing Student of the Year Awards Ceremony. Of special note is the MSN Product Launch Dinner Meeting, to officially affirm the distribution partnership between the LASCO Pharmaceutical Division and MSN Laboratories Limited. The new partnership between the two companies will result in the delivery of affordable and high quality drugs such as ILET B for the management of Diabetes type 2 and Safelevo, which safely and effectively fights infection.

Hon. Lascelles Chin, Chairman of the LASCO Affiliated Companies (second left) shares a photo moment at the MSN Product Launch Dinner Meeting with LDL Pharmaceutical Division team members, Tracy-Ann Reid, Sales & Marketing Officer (left) Tiease Smith, Administrative Support Officer and Andrea Cover , Sales Manager(right).

Representatives from LASCO Pharmaceutical Division and MSN Laboratories Limited at the MSN Product Launch Dinner Meeting.

Representatives at the Pharmaceutical Society of Jamaica National Pharmacy Week held on November 19, 2012.

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Health Home & Garden ExpoLASCO Distributors Limited created a stir at the biannual Health Home & Garden Expo which was held November 9 to 11, 2012. Winner of the award for the booth with the “Best Buzz”, the LASCO booth had a consistent flow of patrons, who witnessed exciting cooking demonstrations by Chef Melissa Dukharan, as well as energetic health talks by media personality and Enermax spokesperson, Denise Hunt. Visitors to LASCO’s booth were also treated to exciting giveaways including a LASCO keepsake booklet, which allowed them to try a range of tasty and nutritious LASCO recipes at home.

Ms. Victoria Melhado, LASCO/NAJ Nurse of the Year 2012-2013 , presents a LASCO Gift Bag to a student at the Health Home & Garden Expo.

Chef Melissa Dukharan conducts a cooking demonstration for the audience at the Health Home and Garden Expo.



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Jamaica Manufacturers’ Association/Jamaica Exporters’ Association Expo

In April 2012, LASCO showcased its range of locally manufactured products at the Expo Jamaica 2012, hosted by the Jamaica Manufacturers’ Association and Jamaica Exporters’ Association. LASCO’s booth was buzzing throughout the three day exposition, as patrons flocked to be a part of the exciting activities.

Visitors to LASCO’s booth enjoyed riveting and informative health talks by media personality and spokesperson for LASCO Enermax,

Denise Hunt. The patrons particularly enjoyed the physical activities such as push up and arm wrestling contests. They were also treated to delectable samples from LASCO’s cooking demonstrations, performed by Chef Melissa Dukharan. Several dignitaries also joined in on the excitement at the booth and were impressed with LASCO’s range of locally manufactured products on display.

Denise Hunt, Enermax Spokesperson engages former Prime Minister of Jamaica, The Most Hon. PJ Patterson in a riveting conversation about the tasty, nutritious, and energy boosting product.

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Sandra Geohagan-Green, LDL Promotions Coordinator (right) briefs Her Excellency, The Hon. Aloun Ndombet-Assamba, High Commissioner for Jamaica in London and company, as they sampled the product by the LASCO booth at the JMA/JEA Expo.

Renee Rose, Brand Representative and Pamela Black, Promotions Assistant present a LASCO basket to Track and Field star Yohan Blake at the JMA/JEA Expo.

Sherianne Thompson, Brand Representative presents a LASCO basket to The Most Honourable Portia Simpson-Miller, Prime Minister of Jamaica, who visited the LASCO booth, along with former Senator Delano Franklyn.



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LASCO Distributors Limited continues to maintain brand loyalty through sponsorship of community and national activities that identify with family values and nationalism. Education, youth, health and the environment have been the company’s focal areas, in recognition of the critical importance of these areas toward the sustainable development of the nation. LASCO prioritises its role as a corporate citizen, recognising that its tremendous growth over a relatively short period is only

possible because of the ardent support of the Jamaican people.

CORPORATE PROGRAMMESLASCO is especially proud to partner with several public sector bodies such as the Ministry of Education (MoE), the Nurses Association of Jamaica (NAJ) and the Jamaica Constabulary Force (JCF), to annually host the Ambassadorial programmes that recognise the best of Jamaica’s teachers, principals, nurses

and police officers. A major part of the Ambassadorial programmes are the annual award ceremonies, honouring the outstanding work of the selected Police Officer of the Year, Nurse of the Year, Student Nurse of the Year, as well as Teacher/Principal of the Year. These are annual highly anticipated occasions for LASCO, a company that values and rewards dedication, hard work, resilience and excellence.

(R- L) Peter Chin, Managing Director of LASCO Distributors Limited, Hon. Lascelles Chin, Chairman of the LASCO Affiliated Companies, Victoria Melhado, LASCO/NAJ Nurse of the Year and Teisha Vaughn, LASCO/NAJ Nursing Student of the Year, with President of the Nurses Association of Jamaica, Anthonette Patterson.

Corporate Social Responsibility

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(L-R) Hon. Lascelles Chin, Chairman of the LASCO Affiliated Companies, Dr. Margaret Bailey, LASCO/MoE Principal of the Year, Mrs. Daeganna Spencer-Hull, LASCO/MoE Teacher of the Year, with Dr. Elieen Chin, Managing Director of LASCO Manufacturing Limited.

Finalists of the LASCO / Jamaica Constabulary Force Police Officer of the Year 2012 - 2013



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LASCO Product Representative Curtis Whyte presents a gift basket to Suzette Shorter, the mother of the first-born male child at the Spanish Town Hospital on New Year’s Day, as registered nurse and midwife Stacey-Ann Watson looks on while holding Shorter’s baby.

Health Care Over the years, LASCO Distributors Limited has proven its commitment to the advancement of Jamaican maternity and childcare, not only through financial support for health and wellness initiatives but also by conducting visits to health centres and institutions. Our product representatives visit health centres island-wide, to conduct seminars on breast-feeding and baby care with mothers and expectant mothers. The company has developed the tradition of annually welcoming the first babies born on January 1, by donating care packages to their mothers at hospitals in Kingston, Montego Bay and other parish capitals and towns.

Oral Health MonthLASCO partnered with the Jamaica Dental Association for the third hosting of Health fairs to commemorate “Oral Health Month”, which is observed annually in October. Health fairs were conducted at Our Lady of Hope Catholic Church, White Marl, St. Catherine and at the Girl Guides Headquarters, Kingston. Approximately 500 students from 15 elementary and primary schools were afforded evaluation, cleaning and talks on dental care, by dentists and other medical representatives. The children were also treated to sumptuous and nutritious meals prepared by LASCO’s promotion team. The day culminated with each child being provided with LASCO goodie bags, which contained toothpaste samples, brochures, books, rulers and pencils.

Victoria Melhado, LASCO/NAJ Nurse of the Year 2012-2013 helps to educate children on getting a great LASCO smile during Oral Health Month 2012.

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Students get free dental checks from volunteers at the LASCO sponsored event for Oral Health Month.

Renee Rose (Brand Representative) and members of the Jamaica Dental Association engages students in a discussion on oral health.



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Education

Basic Schools LASCO has also adopted the Collins Close and Gwen Neil Basic Schools, located in Kingston and St. Catherine respectively. The company continues to provide assistance in the improvement of the schools’ infrastructure, as well as financial, nutritional and educational support to the staff and students.

In its continued support of academic competitions amongst our nation’s youth, LASCO has been an ongoing sponsor of the Gleaner Children’s Own National Spelling Bee. Through its sponsorship of the Spelling Bee, LASCO awarded 32 gift baskets to the finalists, chaperones, and coaches taking part in the competition. The attractive gift baskets included a range of goodies for the young finalists including LASCO Food Drink, Fun-C Juices and LASCO Vienna Sausages.

LASCO Brand Representative, Sherianne Thompson presents a LASCO gift basket to one of the coaches of for the Spelling Bee finalists. In recognition of the importance of academic competitions such as the Gleaner Spelling Bee in teaching students not only academics but also good sportsmanship, LASCO provided gift baskets to the Spelling Bee finalists, coaches and chaperones.

LASCO Brand Representatives, Sherianne Thompson and Nanda Dukharan (on left side), along with Teachers and students at the Gwen Neil Basic School are all smiles at the LASCO sponsored breakfast programme at the school.

LASCO’s Brand Representative, Renee Rose presents a goodie bag to a patient at the Bustamante Children’s Hospital. LASCO sponsored gift bags to the annual Christmas Treat at the hospital hosted by Mr. & Mrs Errol Maragh.

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The LASCO REAP areas of focus included:

• Reforestation via Comprehensive Tree- Planting Programme

• Energy Conservation and Recycling • Vegetable and Flower Garden

Design and Maintenance

• Anti-Litter and Clean- up Campaign (School and Community)

• Greenbelt Depletion and Urban Development Awareness


Nanda Dukharan, Brand Representative participates in a tree planting exercise with students of the Louise Bennett-Coverly All Age School, during one of the LASCO REAP school visits.

EnvironmentREAPLASCO REAP (Releaf Environmental Awareness Programme) was launched in October 2012, in an effort to reinforce the popular description of Jamaica as the Land of Wood and Water. This was done as part of an awareness building programme targeting primary school level children to be become more actively involved in the environment around them. The LASCO REAP Programme was executed with a view to creating a new zeal both in the student population, as well as with the local community. It was launched in commemoration of Jamaica’s 50th Anniversary of Independence and included a competition initiated among 50 pre-selected schools island-wide. This served to increase awareness of the correlation of lifestyle and environment. LASCO has always been dedicated to environmental best practices and initiatives and therefore to the project as the title sponsor.

(R-L) Hon. Lascelles Chin, Chairman of the LASCO Affiliated Companies, Mr. Peter Chin, Managing Director of the LASCO Distributors Limited, Mr. Cleverick Doughorty , Production Manager (Beverage) at LASCO Manufacturing Limited and Stephen Newland, REAP Director on the grounds of the LASCO Distributors Limited.



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Schools’ Challenge QuizIn recognition of the role of TVJ’s Schools’ Challenge Quiz in promoting healthy competition and academic excellence among secondary schools, LASCO Manufacturing Ltd. (LML) has continued the sponsorship of this programme which is in its 44th season. As main sponsor of the programme, LML provided LASCO Food Drink to the competition’s finalists to help fuel them during the taping of matches and also awarded attractive prizes to the first, second and third place teams. LASCO’s prizes for Schools’ Challenge Quiz finalists comprised $200,000 and a breakfast program valued at $50,000 to the 1st place team, $120,000 to the 2nd place team and $80,000 to the 3rd place team. The highest scoring school in Middlesex, where LASCO Distributors Limited’s Consumer Division is located, received a breakfast programme valued at $50,000. As the local marketing arm of LML, LASCO Distributors Ltd. coordinated the activities related to this sponsorship.

Members of the LASCO team congratulate Keenan Falconer (centre), captain of the winning Ardenne High’s 2013 Schools’ Challenge Quiz team. Sharing the moment are (L-R) Paul Darby, LML Financial Accountant, Rhona Munoz, LML Procurement Manager, Marjorie McCalla, LML Export Sales & Marketing Manager and Kelia-Gaye Dunbar, Marketing Manager at LASCO Distributors Ltd. Ardenne received a cheque of $200,000 and breakfast sponsorship valued at $50,000 from LASCO.

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Team members from Titchfield High School, who placed second in the 2013 Schools’ Challenge Quiz competition are congratulated by (L-R) Kelia-Gaye Dunbar, LASCO Distributors Ltd (LDL), Rhona Munoz, Procurement Manager, LASCO Manufacturing Ltd. (LML), Sherianne Thompson, LDL Brand Representative, and Paul Darby, LML Financial Accountant.

Rhona Munoz, Procurement Manager, LASCO Manufacturing Limited, presents a cheque valued at $80,000 to representative of Kingston College, who placed third in the Schools’ Challenge Quiz competition.

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INDEx

Independent Auditors' Report to the Members .................................... 45

FINANCIAL STATEMENTS

Statement of Comprehensive Income .............................................................47

Statement of Financial Position ................................................................................... 48

Statement of Changes in Shareholders' Equity .................................... 49

Statement of Cash Flows .................................................................................................. 50

Notes to the Financial Statements ............................................................................ 51

13LASCO DISTRIBUTORS LIMITEDFINANCIAL REPORT

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LASCO DISTRIBUTORS LIMITEDStatement of Comprehensive Income

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LASCO DISTRIBUTORS LIMITEDStatement of Financial Position

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LASCO DISTRIBUTORS LIMITEDStatement of Changes in Shareholders’ Equity


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LASCO DISTRIBUTORS LIMITEDNotes to the Financial Statements

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60



31 March 2013

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61



31 March 2013

LA

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62



31 March 2013

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63



31 March 2013

LA

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64



31 March 2013

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65



31 March 2013

LA

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66



31 March 2013

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67



31 March 2013

LA

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68



31 March 2013

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69



31 March 2013

LA

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70



31 March 2013

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71



31 March 2013

LA

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72



31 March 2013

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73



31 March 2013

LA

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74



31 March 2013

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75



31 March 2013


LASCO DISTRIBUTORS LIMITEDANNUAL GENERAL MEETING

Proxy Form

I/We

of

being a Member/Members of the above-named Company, hereby appoint

of

or failing him/her,

of

as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held at the Terra Nova

All-Suite Hotel, 17 Waterloo Road, Kingston 10 on Monday, September 30, 2013 at 11:30 am and at any adjournment thereof.

I desire this form to be used for/against the resolutions.

Signed this day of 2013

Signature:

Unless otherwise directed the proxy will vote as he thinks fit.

NOTES: 1. When completed, this form must be received by the Registrar of the Company at the address given below, not less than forty-eight (48) hours before the time for holding the meeting.

2. The Proxy Form should bear stamp duty of $100.00 which may beadhesive and duly cancelled by the person signing the proxy form. 3. If the appointer is a Corporation, this Form of Proxy must be executed under its common seal or under the hand of an officer or attorney duly authorized in writing.

Send to: The Registrar and Transfer Agent Jamaica Central Securities Depository 40 Harbour Street Kingston

PostageStamp

NOTES

27 Red Hills Road, Kingston 10 Jamaica, W.I.

www.lascojamaica.com

Distributors Limited

Vision Statement - Lasco Jamaica

Documents