December 28, 2010

CEO’S REPORT FOR

NEAL & MASSY HOLDINGS 2010 ANNUAL REPORT

Recap of 2010
2010 was a tumultuous year in which the economic recession that plagued many Caribbean
countries impacted on the Neal & Massy Group. It was also an important transition year, as the
Group implemented many initiatives to clean up exposures to risks and unprofitable operations.
As a result, we enter the 2011 Financial Year well poised to resume profitable growth.

In our previous Annual Report we explained the difficulties faced by the Group in 2009 and the
“significant turnaround efforts being undertaken at Dacosta Mannings Inc (DMI), Almond
Resorts Inc (ARI) and Bahamas Supermarkets Limited (BSL).” (2009 Annual Report) The
turnaround of DMI was successful and the company contributed positively to 2010 Earnings.
However, we did not anticipate the depth of the economic recession and increasing competitive
intensity in Food Retailing in the Bahamas, which overcame the Group’s efforts to turn around
BSL. We were also disappointed by the extended decline in tourism revenues, with increased
operational losses in the ARI hotels, which were exacerbated by providing against receivables
due under an ARI management contract from a hotel in St Lucia.

The snap election that was called in Trinidad and Tobago, with its ensuing period of uncertainty
and economic contraction, has prolonged the downturn in the local construction industry, to the
detriment of Pres-T-Con. Our results were also adversely affected by provisions for sums owing
to NM Insertech for significant work on the World GTL plant construction, which have gone
unpaid. This occurred after Petrotrin acquired the financing Bond for the project from Credit
Suisse, and put World GTL Trinidad and Tobago into receivership.

The Group has responded to these developments with great urgency. We initiated and, at the
time of preparing this report, have completed divestment of some operations which have been
negatively impacting the Group. Both Warrens Motors and Bahamas Supermarkets have
incurred continued losses over the last several financial years, and in the last quarter of 2010,
the Neal & Massy Board took the decision to dispose of these investments. Attempts to turn
around these companies proved unsuccessful as important structural disadvantages were too
significant to overcome. The Group took the decision to exit these investments in order to curtail
future losses. Operating Losses and discontinuation costs incurred in the sale of Bahamas
Supermarkets and Warrens Motors reduced the Group’s EPS by $1.22.

The Group has also cut costs and initiated restructuring efforts at other operations. The
overhead costs and manpower levels at Pres-T-Con were substantially cut, and cost reduction
and restructuring efforts are well underway at Almond Resorts. ARI’s management contract with
the Smugglers Cove hotel in St Lucia was terminated effective December 15, 2010, putting an
end to ongoing credit risk and allowing us to better focus on improving the results of the Almond
Morgan Bay hotel, also in St Lucia. As part of the restructuring effort at Almond, the ARI Board
will explore all options for restructuring and turning around the performance of the hotel group,
including property improvements and deploying a team to assist with Revenue production and
operations improvements to the hotels.

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These Operating Losses and the provision for doubtful debts had a further negative impact on
the Group’s results by reducing its EPS by more than $0.87.

Despite these challenges, the Group remains strong. The disciplined management of working
capital continued from 2009 into 2010, as Inventories and Receivables remained unchanged. As
a result, Cash, however, grew 19%, from $958 million to $1.14 billion, while the Group’s Debt to
Equity ratio was reduced.

Looking to the future

Earlier in this Annual Report, we introduced our new Vision Statement:

The Neal & Massy Group: A Force for Good – the Most Responsible and Profitable Investment
Holding/Management Company in the Caribbean Basin

Consistent with this vision, throughout the 2011 financial year the Group will continue to review
non-productive and/or non-strategic assets for productive deployment or divestment as it
focuses its efforts on Growth. To this end, a new Senior Vice President has been recruited.
Thomas Pantin, who was most recently the Group CEO for The Office Authority Limited and
before that the Regional Director/CEO for Courts Trinidad, Barbados and Guyana, will join the
Group as the SVP of Special Projects and Growth.

The Group has several exciting prospects for growth which it is pursuing and evaluating,
including potential acquisitions and investments in the Energy Sector, further expansion of the
Hi Lo and Supercentre supermarkets, opportunities in the growing Guyanese economy and
potentially with a Group in the Dominican Republic.

In 2011, we have launched five management initiatives, which we will continue to emphasise
throughout the Group:

1. Growth
2. Customer Service
3. Re-focus on Shareholder Value Added
4. Efficiency Improvements
5. Corporate and Business Unit Strategy

Growth: Despite the challenging economic conditions in Jamaica, Barbados and Trinidad and
Tobago, the Group has identified opportunities for growth. Some are more immediate while
others will take a few years to come to fruition. Each business unit has been given a growth
mandate and is exploring opportunities locally and internationally. In addition, we have initiated
an international expansion effort at the corporate centre and will be visiting Latin and Central
American countries in 2011 to explore and develop investment opportunities.

Customer Service: The Group embarked upon a Customer Service Improvement initiative in
2010. Sharon Jemmott was transferred from Neal & Massy Wood Group to become the
Corporate Customer Service Manager and spearhead the initiative across the Group. The
executive leadership teams at Hi Lo and Neal & Massy Automotive have enrolled in pilot
programmes to implement the new Customer Service Management System, which was
developed internally during the 2010 financial year.

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Re-focus on SVA: Shareholder Value Added (SVA) was first introduced at Neal & Massy in
2001 and provided an important impetus for growth in ensuing years. We have recognised the
opportunity to refocus executives, management and staff across the Group on this key
measure. SVA measures not only the strength of the Group’s earnings but also deducts the cost
of total capital employed from Net Operating Profit After Tax (NOPAT), to measure how well the
Group (or any unit of the Group) is performing after the cost of the capital that is employed by
the Group (or any unit) is taken into consideration. Initially, SVA will be used as the key financial
incentive for Group senior executives and subsidiary CEOs and will drive an increasing focus on
the combination of Earnings (NOPAT) and Asset and Liability management.

Efficiency Improvements: During the 2009 Financial Year and into 2010, many of the Group’s
companies initiated significant cost reduction efforts. They had much success in reducing and
controlling expenditures. While we believe additional savings are possible, we expect greater
payback from turning our focus to improving efficiency and productivity.

Corporate and Business Unit Strategy Development: In 2011, Neal & Massy will launch a
Group-wide strategy development exercise with the assistance of an external management
consulting firm. This type of exercise was last done when Mr Dulal-Whiteway first assumed the
office of the CEO in 2000. We recognise the importance of this type of exercise to chart a
course for the fulfillment of the vision and also to train and develop internal resources in the
practice of preparing annual strategic plans.

Closing Remarks
The review of our financial performance is presented in the CFO’s report and the discussion on
our Business Segments is presented by each of our Business Unit Chairmen in the Business
Segment Report.

In 2010, one of our employees at Pres-T-Con, Mr. Cliff De Noon, lost his life while a major
stressing operation was taking place at Pre-T-Con’s Arima facility. Our deepest sympathy goes
out to his family. Over the past five years, the Neal & Massy Group has made significant strides
in improving the Health and Safety standards and operations throughout the vast majority of the
Group’s companies; this tragedy emphasises the importance of continuing our efforts. In 2010,
Neal & Massy Wood Group celebrated 5 million man-hours without a Lost Time Incident (an
injury requiring an employee to stay away from work) and was the first (and still only) company
in Trinidad and Tobago to achieve the “Safe To Work” (STOW) certification from the Energy
Chamber in conjunction with the upstream oil and gas and downstream petrochemical
producers. NM Insertech Caribbean celebrated 1 million man-hours without an LTI. In addition,
both leading (prevention), as well as lagging (output), HSE indicators improved across the
Group.

I wish to thank all our customers and clients for their continued business with the Group. Our
recently initiated group-wide Customer Service Improvement effort is creating more formal
structures for gathering your feedback. We recognise that we are doing certain things well that
win your repeat patronage, but we also recognise that we have opportunities for improvement
and are making the investments to do so.

I also wish to thank the executive team with which I have been blessed and afforded the
opportunity to serve. The Neal & Massy Group has an excellent cadre of leaders across our
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functions, business units and territories. I wish to acknowledge their commitment and
leadership, which produce the success that the Group enjoys. I also thank all of our employees
across the Group. It is the hard work, patience and dedication of these individuals that delivers
the Group’s products and services to its customers and clients.

As we continue into 2011, the Group will confront many difficult and strategic decisions. I am
grateful to our Board of Directors led by our Chairman, Arthur Lok Jack, for their continued
guidance and support. With their counsel the Group continues to make sound decisions.

I wish to especially thank our shareholders for the faith and confidence that you demonstrate by
investing in our Group. While 2010 has been a tumultuous year for the Group, we appreciate
the need to continue to generate growth and a superior return on your capital. Rest assured we
continue to operate with your interest at the forefront of our concerns; and we look forward to
serving you for many years to come.

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 CFO’S REPORT FOR
NEAL & MASSY HOLDINGS 2010 ANNUAL REPORT

FINANCIAL REVIEW
Highlights:
 Group Third Party Revenue remained flat at $8.3 billion
 Profit Before Tax declined by 12.5%, from $692 million in 2009 to $606 million
in 2010
 Profit After Tax declined by 18%, from $517 million to $424 million
 The losses from discontinued operations were $118 million.
 Earnings Per Share from continuing operations was $4.35—10.9% lower than
in 2009 when EPS was $4.88
 Group Debt declined by $197 million to $1,978 million
 Group Cash increased from $958 million to $1,138 million.
 Debt to Equity Ratio improved, from 79% in 2009 to 66% in 2010
 Current Ratio also improved, from 1.25 in 2009 to 1.28 in 2010

Profit and Loss:

The Group revenue from continuing operations remained at $8.3 billion while the
Profit before Tax (PBT) declined by 12.5%, and EPS from continuing operations
declined by 10.9%. The delay in the turnaround of some of the troubled companies in
the Group has significantly impacted the results for 2010. The Group had five loss-
making companies in 2010, two of which are shown in the held for sale category
(Discontinued Operations) at the end of September 2010. The Board approved the
disposal of Warrens Motors Inc and Bahamas Supermarkets Ltd in the last quarter of
2010, and both disposals will be completed in the new financial year. Other loss-
making companies included Pres-T-Con, Cool Petroleum Ltd and Almond Resorts.
The impact of these companies is shown in the table below.
 Profit Before  Profit Before Tax 
Impact of the Loss Making  Companies Tax 2009 2010 EPS 2009 EPS 2010

Total Group 658,967 487,831 4.53 3.13

‐26% ‐31%
Discontinued Operations:
Warrens Motors Inc (13,760) (30,062)              (0.15)             (0.31)
Bahamas Supermarkets Ltd (19,515) (87,818)             (0.20)             (0.91)
(33,275) (117,880)             (0.35)             (1.22)

Continuing Operations ‐Reported in 2010 692,242 605,711              4.88              4.35

Y on Y changes % ‐13% ‐11%
Other Loss Making Companies:
PresTcon 16,080 (12,530)              0.09             (0.06)
Cool Petroleum Ltd  (11,569) (7,280)             (0.12)             (0.08)
Almond Resorts Inc (26,164) (102,040)             (0.14)             (0.73)

(21,653) (121,850)             (0.17)             (0.87)

713,895 727,561                5.05              5.22

Y on Y changes % 2% 3%

With the acquisition of BS&T, the Group inherited some under-performing

companies, including Bahamas Supermarkets, Warren Motors, Dacosta Mannings
and Almond Resorts. Major turnaround efforts continued throughout 2010 for these
companies, and Dacosta Mannings contributed positively to the Group’s profits.

Closure costs for Warrens Motors and Bahamas Supermarkets and further
impairment losses on the operating assets resulted in a $30 million operating loss in
Warren Motors Inc, compared to $14 million loss in the previous period. The net
asset value of Bahamas Supermarket Ltd at the end of the last financial year was
$27 million; in first quarter of this financial year the Group invested a further $52.2
miilion by way of a cash injection of $35 million and a guarantee given to Royal Bank
of Canada for $17.2 million, for a Bahamas Supermarkets Loan. On 10 November,
2010, the holding company in which the Group had invested, sold its investment in
Bahamas Supermarkets Ltd for $1.00 and Neal & Massy wrote off the value of its
investment at the financial year ended 2010. The Cool Petroleum Ltd investment was
also written off, as this company is seeking another cash equity partner.

In the Automotive and Industrial Equipment Business Unit, Pres-T-Con was the
hardest hit by the contraction of the construction industry in Trinidad and Tobago.
This company underwent significant restructuring in the earlier part of this year and it
is expected to return to profitability in 2011. Efforts to turnaround Almond Resorts are
continuing but were impacted by the downturn in UK, US and European economies,
which contributed to the decline in the Tourism sector in Barbados and St Lucia.
Losses for the year included a provision for amounts receivable from Smugglers
Cove and other impairments, as well as additional expenses in relation to
maintenance and energy costs.

The prevailing economic environment throughout the region continued to adversely

impact the rest of the Group, resulting in a marked slowdown in business activity.
Key operating companies such as United Insurance, Hi Lo Food Stores and Neal &
Massy Automotive Ltd, had marginal growth revenues. Good growth was seen in
both our Finance and Property and Retail and Distribution Business Units. While
economic conditions in Jamaica were particularly difficult, our Jamaican subsidiaries
have continued to generate good profits. Guyana is the only economy that showed
growth in 2010, and this was reflected in the strong operating performance of our
Guyana-based subsidiaries.

Group-wide cost reduction initiatives helped the Automotive and Industrial

Equipment, Information Technology and Communications, and Retail and Distribution
Business Units to control their operating expenses for 2010. The Energy Business
Unit’s performance was impacted by an increase in cost that resulted from a full
provision required for a Ventech receivable of $24 million.

Interest costs reduced from $102 million to $77 million, primarily because of the
reduction in the foreign exchange losses experienced in our USD borrowings in
Jamaica. These USD loans would have been fully repaid by December 2010. In
addition, interest rate environment remained low throughout the year, and it impacted
the interest income earned in 2010.

The Taxation charge for the Group increased to $182 million, compared to $175
million in 2009, and the effective tax rate increased from 25% to 30%. Increased
profits generated in higher tax jurisdictions of Guyana and Jamaica accounted for the
increase in the taxation. In addition, there were no tax credits taken on the losses
generated by Almond resorts Inc.

The business environment remains challenging, but the Group has a conservative
business model which prudently manages risk, and we expect our performance to
improve in 2011.

Balance Sheet:
The Group’s financial condition and balance sheet remained strong. Total Assets
remained at $8.3 billion at the end of September 2010. Disciplined efforts to improve
working capital management and protect cash produced handsome results as our
cash balances increased by 18.8%, to $1.1billion.

Our net assets per share increased from $28.64 to $31.09 and our leverage
improved from 79% to 66%. Total borrowings declined from $2.2 billion to $2 billion
with a debt repayment of $288 million, while the borrowings in our Hotel operations in
Barbados increased from $400 million to $440 million.

Our investing activities utilised $142 million in cash during 2010, compared to $284
million in 2009. This included the acquisition of additional Property Plant and
Equipment of $223 million. In addition, the Group sold two surplus properties in
Barbados in 2010, which resulted in a marginal gain of $6 million.

Our financing activities utilised $413 million in cash in 2010, compared to $142
million in 2009. There was a repayment of medium-term debt of $256 million in 2010
and dividend payments increased from $165 million to $172 million. Subsequent to
the close of the fiscal year, the group raised a TTD bond of $350 million at a fixed
rate, and this was used to repay a substantial part of the USD borrowings.

The Group has adequate financial resources to support its anticipated short- and
long-term capital obligations.