THE INITIATES ANNUAL REPORT 2022

ANNUAL REPORT Date: 13th July, 2023 Venue: The Conference Hall, Bon Hotel at LA Kings, 31 Ken Saro wiwa Street, Former Stadium road, Rumuomasi Port Harcourt, Rivers State Time: 11:00am THE INITIATES PLC Waste Managers and Industrial Cleaners & ACCOUNTS

Result at a Glance Corporate profile Notice of the 24th Annual General Meeting Chairman's Statement Board of Directors Report of the Directors Corporate Governance Report Statement of Director's Responsibilities Report of the Independent Auditors Report of the Audit Committee Statement of Comprehensive Income Statement of Financial Position Statement of Change in Equity Statement of Cash Flows Notes to the Financial Statements Statement of Value Added Five year Financial Summary Share Capital History SHAREHOLDER'S INFORMATION Shareholder Data Update Form E-Dividend Mandate Form Proxy Form C O N T E N T S The Initiates Plc... Powered by Innovation and Consolidated experience 1 2 4 8 10 13 20 24 27 28 31 32 33 34 35 37 73 84 85 86 87 88

RESULT AT A GLANCE 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience 2

3 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

CORPORATE PROFILE The Initiates Plc. was incorporated in Nigeria as a Limited Liability Company on the 3rd day of March, 1995 and became a Public Liability Company on the 24th day of June, 2015. It is a Waste Management company delivering professional contracting and consultancy services in Waste Management, Industrial Cleaning, and Decontamination to both Private and Public sectors including the Oil & Gas Industry. It has a multi-disciplinary and flexible workforce structure that is functional in a wide range of work environments. To be the industry's leading provider of Waste Management & industrial cleaning services that eliminate client's exposure and protect the environment through: · Adherence to best practises · Consolidation of experience; and · Improvement aimed at adding value to our clients business and public life. To facilitate industry and man coexistence in safe environment. OUR CORE BUSINESS VALUES PROFESSIONALISM: INNOVATION COMMITMENT Solution that is efficient and Simple To Environmental protection To Safety To Quality To Compliance Integrity Expertise Standards & Certification VISION MISSION 4 · Support sus tainable produc tion and consumption through professional waste management services; · Provide efficient waste management services through integrated facility and workforce in secured environment; and OUR GOALS 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

A. THERMAL DESORPTION SERVICES 1. Drilling Waste 2. Oily sludge 3. Oil contaminated soil B. RIG SITE WASTE MANAGEMENT Install, operate and maintain all on-board equipment and systems which include; Cuttings Pump and Tank System which pumps drill cuttings without excavator , Solid Control Equipment (variable speed centrifuges), and Waste Treatment Equipment (Vertical Dryers) C. HAZARDOUS WASTE INCINERATION SERVICES Medical & other Hazardous waste We provide end-to-end Waste Management and Industrial Cleaning services as below: PRODUCT AND SERVICES: 5 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

D. ASBESTOS MANAGEMENT 1. Asbestos Surveys & Documentation 2. Asbestos Awareness Training 3. Asbestos Encapsulation 4. Asbestos Removals & Asbestos Packaging 5. Asbestos Transportation and Disposal E. INDUSTRIAL CLEANING SERVICES: 1. FPSO Cleaning; 2. Tank cleaning; 3. Heat Exchanger cleaning; 4. Drainage & Pipe cleaning; 5. Surface preparation F. E-WASTE SERVICES 1. Large Household Appliances (LHA: ovens, refrigerators, etc.) 2. Small Household Appliances (SHA; toasters, vacuum cleaners), 3. Office and Communication Devices (OCD: computers, printers, scanners, phones) 4. Entertainment Electronics Devices (EED: TVs, Hifis, portable CD Players, etc.), 5. Lighting Equipment (LTE: fluorescent tubes, lamps, etc.), 6. CFC recovery 6 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

DIRECTORS,PROFESSIONAL ADVISERS & CORPORATE INFORMATION BOARD OF DIRECTORS: 1. Mr. Joe Ogbonna Anosikeh Chairman (appointed 23/3/15) 2. Mr. Reuben Mustapha Ossai Managing Director 3. Chief Charles Oboh Non-Executive Director(appointed 23/3/15) 4. Prof.Edward Alikor Non-Executive Director (appointed 23/3/15) 5. Mr. Joseph Ebinum Non-Executive Director (appointed 17/7/15) 6. Dr.Dorothy Bassey Independent Non-Executive Director (25/8/2022) MANAGEMENT TEAM: 1. Mr. Reuben Mustapha Ossai Managing Director 2. Mr. Augustine Porbeni General Manager, Industrial Cleaning Services 3. Mrs.Ugochi Ukpebor Manager, Quality, Health, Safety and Environment 4. Mr. Emmanuel Urrah Manager, Incineration services 5. Mr. Obot Solomon Manager, Waste Management services 6. Mr. Temitope Odeshi Manager, E-Waste 7. Dr. Rosemary Taneh Chief Financial Officer 8. Mr. Bimbo Adams-Ajigbotaje Chief Internal Auditor 9. Mr. Mavis Okonye Manager, Support Services 10. Ms. Olaide Odejobi Company Secretary EXTERNALAUDITORS: Madu, Onyekwena & co. (Chartered Accountants) 23/25 Birabi Street, GRAPhase 1 P.O.BOX 12279 Port Harcourt Nigeria BANKERS: GTBank Plc. Opp. Shell RA Branch, Aba Rd, PHC nd Stanbic IBTC Bank; 2 Avenue, 23 Road, Gacoun Shopping Plaza. Festac Town Lag. Providus Bank.724, Adetokunbo Ademola Street, Victoria Island, Lagos. MEMBERS OF AUDIT COMMITTEE: Mr. Christian Ugochukwu Nwanma hareholder representative (Chairman) Mr. Enoch Iwueze Shareholder representative Mr. Olushola Adegbite Shareholder Representative Prof.Edward Achinike Daniel Alikor Director Mr. Joseph Ebinum Director REGISTRARS: Apel Capital &Trust Limited 8, Alhaji Bashorun Street Off Norman Williams Crescent South-West Ikoyi. Lagos. REGISTERED OFFICE: Plot 400, Location Road, off Aba/PH expressway, by Oyigbo Junction, Umuebule 5, Port Harcourt, Rivers State. [email protected], www.initiatesgroup.com 084-669510 7 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

NOTICE IS HEREBYGIVEN that the 24th Annual General Meeting (2022) of The Initiates Plc. (TIP) th shall hold on Thursday,13 July, 2023 at the Conference Hall, Bon Hotel at LA Kings.31 Ken Saro wiwa Street, Former Stadium road, Rumuomasi, Port Harcourt, Rivers State, by 11:00am to discuss the following: Ordinary Business: A 1. To receive and consider the Audited Financial Statement as at December 31, 2022, the report of the Directors, the Audit Committee, the Auditors Report therein; 2a. To elect Chief Oboh Ozoherebe Gordon as a Director of the Company 2b To retire the following Directors and re-elect Prof.Edward Alikor as a Director of the Company: i. Prof.Edward Alikor ii. Chief Charles Aroawode Oboh 3. To re-appoint the Audit firm of Madu, Onyekwena & Co. as the Company's External Auditors. 4. To authorize the Directors to fix the remuneration of Auditors. 5. To appoint/ re appoint members of the Audit Committee. 6. To disclose remuneration of Managers Special Business: 7. To consider and approve the remuneration of Directors Notes: 1. Proxies: S.230 (1) CAMA: Any member of a Company entitled to attend and vote at a meeting of the Company shall be entitled to appoint another person (whether a member or not) as his proxy to attend and vote instead of him, and a proxy appointment to attend and vote instead of a member shall also have the same right as the member to speak at the meeting. Executed proxy forms should be deposited with the Company Secretary at the registered office of the Company not later than 48hours before the meeting for Stamping at the Company's expense. 2. Closure of Register of Members: The Register of Members of the Company will be closed on th th the 26 day of June to the 12 day of July 2023, both days inclusive. 3. UNCLAIMED DIVIDEND: Members who are yet to claim previous dividend(s) are advised to write or call at the office of the Registrars, Apel Capital & Trust (Registrars) Limited, 8, Alhaji Bashorun, Off Norman Williams Street, Ikoyi on 01-2932121, 07046126698 or email [email protected], www.apel.com.ng to confirm their dividend status. 4. RIGHT OF SHAREHOLDERS TO ASK QUESTIONS: Shareholders have a right to ask questions not only at the Meeting but also in writing prior to the Meeting and such questions must be submitted to the Company Secretary on or before the 6th. Day of July 2023. 5. Audit Committee Members: In accordance with section 404(6) of the Companies and Allied Matters Act, 2020, any shareholder may nominate another Shareholder for election as a member of the Audit Committee by giving notice in writing of such nomination to the office of the Company Secretary situated at Plot 400, Location (new) road, off Aba/Port Harcourt Expressway, by Oyigbo Junction, Umuebule 5, P.O.Box 7242, Port Harcourt, Rivers State at least 21 days before the Annual General Meeting. NOTICE OF THE 24TH ANNUAL GENERAL MEETING 8 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

6. BIOGRAPHICAL DETAILOF THE DIRECTOR FOR RE-ELECTION: The Biographical details of the Director submitted for re-election is contained in the Annual Report and on the Company's website at www.initiatesgroup.com 7. Live Streaming of the AGM: The AGM will be streamed live. This will enable shareholders and other stakeholders who will not be attending physically to follow the proceedings. The link for the AGM live streaming will be made available on the Company's website at www.initiatesgroup.com 7. The 2022 Annual Report and Accounts of the Company shall be made available on the Company's website; www.initiatesgroup.com Dated this 27th day of April 2023 By Order of the Board Olaide Odejobi Company Secretary FRC/2017/NBA/00000016739 999 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

Distinguished Shareholders, it is indeed with great pleasure that I welcome th you to the occasion of today being the 24 Annual General Meeting and I present to you the Annual report and accounts for the last financial year st ended 31 December, 2022. Permit me however, to review the global and domestic environment with respect to critical factors that impacted on the strategies and operations of the Company during the financial year under review. GLOBALECONOMY: REVIEW The Hazardous waste management market is estimated to grow at a CAGR of 9.14% between 2022 and 2027. The size of the market is forecast to increase by USD 252.85 million MTPA. The growth of the market depends on several factors, including an increase in industrial activities, stringent government regulations, and rapid growth of medical contract research organizations. The increase in industrial activities is notably driving market growth. Economic development has strengthened the confidence of consumers, leading them to purchase more goods, thus increasing industrial activities. High buyer confidence has resulted in increased production and sales of automobiles. Thus, the increased industrial activities result in the production of more waste. Moreover, the adoption of waste management by the automobile industry has increased because increased demand for raw materials might lead to their depletion. Hence, measures are being taken to use the materials judiciously and manage the waste efficiently. For instance, Suez provides hazardous waste management solutions to its industrial clients across the world by ensuring compliance with the specific regulations and safety of people, property, and the environment at all stages of the waste management process. Hence, such growth in industrial activities is expected to drive the global hazardous waste management market during the forecast period. Stringent regulations for hazardous waste transporters is the key trend in the market. Hazardous waste transporters play an integral role in the hazardous waste management value chain by carrying the wastes from the point of generation to the destination where they are either disposed of or treated. Since hazardous waste transporters carry regulated wastes on public roads, rails, highways, and waterways, the US EPAand the US DOT have jointly developed regulations for the hazardous waste transporter. The transporter is subject to various regulations. The transporter should obtain an EPA identification number comply with EPA's hazardous waste manifest system, handle hazardous waste discharges, and obey all the applicable hazardous materials regulations laid down by US DOT. Thus, such regulations pertaining to the transporters will increase the safety in the transportation of hazardous waste. This will make hazardous waste management more efficient and will protect the surrounding environment and human health. Hence, the above-mentioned factors are expected to drive the growth of the global hazardous waste management market during the period. Key Hazardous Waste Management Market Challenge The high cost involved in Hazardous waste management is the major challenge impeding market growth. The potential risk of hazardous waste depends on its volume, characteristics, and the way the waste is disposed of and treated. The disposal cost of medical waste is 22 times greater than the disposal of regular trash. Moreover, care should be taken to dispose of the medical waste in regulated containers, and all blood or other potentially infectious materials (OPIM)-contaminated 99 CHAIRMAN'S STATEMENT 10 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

items should be handled safely. With stringent regulations coming up pertaining to the efficient management of hazardous wastes, new processes, technologies, and techniques have been adopted by the service providers. Such stringent requirements lead to an increase in complexities and higher costs of treatment. Hence, availing of hazardous waste management services must bear high treatment costs, and service providers must fulfill the closure and maintenance requirements. This increases the costs borne by all the entities across the supply chain, which may hinder the growth of the global hazardous waste management market during the forecast period. NIGERIAECONOMY: REVIEW Nigeria is in a challenging and deteriorating economic situation with lowered growth projections. The pandemic has slowed economic activity in this diverse and entrepreneurial nation and contributed to a depressed labour market, creating highly challenging setbacks for human and economic development efforts. The implication of this is that the current waste management practices in Nigeria are fast becoming a national issue and unsustainable, leading to apparent environmental risk. However, growth is expected to continue at a stronger pace in the next decades to come which offers excellent opportunities in both private and public sector of the economy. Environmental Protection Regulations is assuming wider dimension in coverage and respect, in the global community. Being proactive in response, the company has taken the following steps in the bid to reposition herself as the Nigerian pioneer in the Hazardous Waste Management Industry subsector: BUSINESS EXPANSION: THE INITIATES UGANDALIMITED: In the bid to be strategically positioned for business expansion, your Company entered into an Agreement with Dag and Bragan Oil and Gas Service (A Ugandan Company) which resulted in the incorporation of The Initiates Uganda Limited with your Company acquiring 40% shareholding while Dag and Bragan acquiring 60%. During the period, The Initiates Uganda Limited (TIUL) with two other local partners effectively commenced operations with TOTAL ENERGIES for management of Construction Phase waste of the Tilenga Field Development which is targeted at securing the Waste water Treatment plants for servicing of TOTALENERGIES. NEW BASE DEVELOPMENT AT KWALE: With the west of South-South region having a concentration of Marginal field operators and all with operational base in Kwale, Delta State; your Company acquired a land for a new base development at Kwale as a good location to have a share of the western market. With this development, your Company is geared towards meeting Client's expectations. CONSOLIDATION OF CURRENT SERVICES: E-WASTE MANAGEMENT SERVICES: With the Government turning the tide on E-waste in Nigeria, your Company already has an E-waste Dismantling and processing plant which accepts various electrical and electronics appliances, including household, office and communication devices. The E-Waste Management services has also managed the destruction of confidential data while providing data protection to our clients and successfully completed the destruction of Ozone 11 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

Depleting Substances (ODS) in a safe and eco-friendly manner. INCINERATION SERVICES: Incinerator has been described as one of our major waste management equipment. Your Company has a 2ton per hour Hazardous Waste Incineration Plant. This Plant is capable of treating Medical, Chemical, and various hazardous waste types including liquid and solid wastes. This is targeted at growing our business in this area and expanding the Company's services to capture a very important segment of the market. INDUSTRIAL CLEANING SERVICES: With the increasing indigenization operations in the Oil and Gas industry, this subsector has contributed positively to the growth of the Company with the use of different equipment procured to boost operations in the sector. MANAGEMENT AND STAFF: We appreciate the Management and Staff for their tenacity in staying with the company. Special thanks to our numerous clienteles who continue to favour us with contracts attesting to our sterling Performance. Finally, my thanks go to all of you that have cherished our company by honouring our invitation to this Annual general meeting. We assure you, The Initiates Plc. shall continue to be a choice destination for investors' fund at all times. th 28 April,2023 Joe Ogbonna Anosikeh Chairman FRC/2014/NIS/00000008836 12 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

MR JOE OGBONNA ANOSIKEH (CHAIRMAN) Mr.Ossai is a Chartered Environmentalist and Waste Manager with over twenty years professional experience. He holds a Master of Engineering Degree in Environmental Engineering and also a Post Graduate Diploma in Petroleum and Environmental law. He is a professional member of the Chartered Institution of Waste Management United Kingdom, International Solid waste Association (ISWA), Vienna and Nigerian Institute of Architects. Mr Ossai's work experience includes design and construction of Wastewater Treatment Plant, Development of various waste management programmes and strategies including regional and solid waste management plans and waste minimization programme for factories. Ossai is the first African to be certified as International Waste Manager by International Solid Waste Association (ISWA) and he is the immediate past President of Waste Management Society of Nigeria. He is a member of Hazardous waste and Landfill technical working groups of ISWA Mr Ossai has served in many Expert Committees on waste management including National Committee on National Medical Waste Management Plans; NESREAreview Committee on Waste Regulations. He is a Contributor to ISWA International Landfill Management and Operational Guidelines and currently lectures waste management at Post graduate level in the Prestigious IPS, University of Port Harcourt. Mr Anosikeh holds a BSc (Hons) Surveying from University of Lagos, Akoka. He was awarded the best student award in Photogrammetry. Mr Anosikeh is a registered Surveyor, and Fellow of Nigeria Institution of Surveyors. He is an Alumnus of the Lagos Business School and IESE Business School in Spain. He attended several courses and seminars among which are Institute of Directors – Financial Stewardship, Accountability & Leading, Planning Development in Dubai, UAE (Nov 2014), IFRS Executive Briefing/Training (Jan 2013) and Hydro8 Exhibition ( Nov 2008). Mr Anosikeh worked with Seismograph Service Ltd, England as Senior Surveyor i/c and was transferred to Seismograph Service Nigeria Limited, Nigeria as Chief Surveyor in 1991. He also worked with Schlumberger: GecoPrakla Nigeria as Chief Surveyor, Special Projects Co-Ordinator, and GecoPrakla Holand & Austria as Survey & Special Projects Manager. Mr Anosikeh assumed the position of Chairman/CEO Survicom Services Nigeria Limited PH from 1998 to date. Mr Anosikeh is currently a member of the Audit Committee of WEMA Bank PLC Lagos, Director Precious Marble & Mining Processing Co. Ltd, Ilorin, Member, Audit Committee UAC Properties Development Co Plc. Lagos, and Vice Chairman Onima Microfinance Bank, Onicha Ezinihitte, Mbaise. He is the Chairman of Survicom Properties Nigeria Limited, PH. MR. OSSAI MUSTAPHA REUBEN (C.E.O/M.D) OUR BOARD OF DIRECTORS AS AT 31ST DECEMBER, 2022 13 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

PROFESSOR EDWARD ACHINIKE DANIEL ALIKOR (Non-Executive Director) Chief Oboh is an experienced, reliable and detail oriented professional in accounting, auditing, internal controls, finance, management and leadership with over 27years experience. He is a graduate of Accountancy of the Federal Polytechnic, Idah. He possesses a Post graduate diploma (P.G.D) in Accounting and Finance from Delta State University, and an MBA in Management Technology from the Federal University of Technology, Owerri. He is currently pursuing PhD in Leadership and Organisational change from Walden University USA. Chief Oboh joined Advanced Security & Technology Services Ltd (ASTS Ltd) a wholly owned subsidiary of Nigerian Security Printing & Minting Co. Limited as Lead Accountant and was promoted to Assistant Finance and latter Accounting Manager. He moved on to Nigerian Security Printing & Minting Co. Ltd as Deputy Finance and Accounting Manager in January 1989. Chief Oboh proceeded to Lehman Brothers INC. (Aurora Loan Services, Inc.) Mortgage Capital Division, Gaithersburg, MD, USA as Mortgage Loans Professional (Closing/Funding & Financial Reporting), and then to NTL Institute, Arlington VA, USA as Acting CFO (2008) from where he moved to PAE Government Services Inc., USA (2008 -2014) as Accountant. He is currently a Partner in Umughele Kaghor & Co. (Chartered Accountants & Tax Consultants) (Oct. 2014 to date) Chief Oboh is an expert in organisational change and leadership and is always at the frontline in championing adaptation to change and enhancing procedural benefits. He is a member of many management, accounting and finance professional bodies in the USA and Nigeria. Among the bodies are: American management Association (AMA, USA); Institute of Certified Public Accountants, Nigeria (CPA, Nigeria); Mortgage Bankers Association (MBA, USA); and National Association of tax professionals (NATP, USA). Chief Oboh has served as the President of the Isoko Association of greater Washington DC for over 5 years. He is also a member of the Board of Trustees of the Isoko Association of North America. He serves as an Election Judge for the State of Maryland, USA with the Montgomery County Board of Elections. He is also a Regional Director - Africa Business Development operations at Moke Technologies Inc., USAand CEO at Aroward Consulting Ltd. Prof. Alikor holds an MBBS degree from the University of Ibadan, Nigeria, MSc Epidemiology from University of London, and he is a Fellow of the West African College of Physicians. He also holds a Post Graduate Diploma in Theology. He was a member of the Rivers State Hospitals Management Board (1993- 1997) and currently, Member of the Board of Management of University of Port Harcourt Teaching Hospital (2013 to date). He has published over 40 original articles in professional journals and contributed in writing chapters in books; also attended, and presented papers in many, national and international conferences. He was Chairman, Nigeria Medical Association, Rivers State branch (1993-1997); Formerly Locum Consultant Paediatrician, Shell Clinic, Port Harcourt and pioneer Consultant Paediatrician, NLNG Clinic, Nigerian LNG Ltd, Bonny (1999 to 2002) Prof. Edward Alikor is currently Professor of Paediatrics University of Port Harcourt; Consultant Paediatrician of University of Port Harcourt Teaching Hospital; Medical Director & CEO Adanta Children Hospital, Port Harcourt. He is a member of several National and international professional associations including Paediatrics Association of Nigeria and American Academy of Paediatricians (AAP). Prof. Alikor is also a Justice of Peace of Rivers State (2007) CHIEF CHARLES A. OBOH (Non-Executive Director) 14 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

JOE EBINUM (Non-Executive Director) Dr. Dorothy Bassey is an experienced Health, Safety and Environmental expert with a consistent track record of successfully employing best oil field practices that improves efficiency, reduces operating downtime while increasing productivity within budget. Having a professional attitude and an ability to be flexible and handle change in a positive manner makes Dr. Dorothy Bassey stand out. With excellent communication, empathy and Organizational skills; Dr. Bassey has demonstrated strong leadership skills by heading a 36 year old Organization as the First female National President of the Foremost Environmental Society in Nigeria; “The Nigerian Environmental Society” (NES) With an in-depth experience & understanding of the Nigerian Oil and Gas sector, She was the Head of Diluent Production, Federal Ministry of Health, Vaccine Production Lab, Yaba (1983-1993); she was the head, Toxicity Testing Unit of the Department of Petroleum Resources (2000-2002); she was the head, Waste Management, Department of Petroleum Resources (2002-2006); She was the Head, License and Permits, of the Department of Petroleum Resources (2006-2008); She was the Head, Safety and Environment of the Department of Petroleum Resources (2008-2014) as well the Head, Corporate Affairs, Department of Petroleum Resources, Nigeria ( 2014-2017). She is currently the Chief Executive Officer of Fortnum Global Hub. Dr. Dorothy Bassey holds a Bachelor of Arts (B.A.Hons) in Chemistry from the University of Lagos, after which she proceeded to the University of Ibadan where she bagged a Master of Science (M.Sc.) in Analytical Chemistry. She holds a Diploma certificate in Waste Management from Galilee College, Israel; a Diploma Certificate in Research Methods and a Ph.D. in Law from the Robert Gordon University, Aberdeen, UK. Her areas of expertise are centred on: Waste Management, Health Safety and Environment, Compliance and Regulations and Report Writing and Analysis. Joe Ebinum is a graduate of Aberdeen College of Commerce, and Norwich City College, Norwich (UK) in Accounting, and holds MBA in Financial Management from Lagos State University. He is a Fellow of Chartered Institute of Certified Accountants-U.K (1982) and Institute of Chartered Accountants of Nigeria (2007) Mr Ebinum has attended many professional trainings including, Exploration & Production Accounting (MDT International-London); Auditing in the E&P Industry (MDT International-London); Mastering Negotiating Skills (MDT International-Kuala Lumpur); Petroleum Economics & Decision Making (MDT International -Kuala Lumpur); Petroleum Risks & Decision Analysis (Petro Skills-London); and Developing & Implementing Product Sharing Contracts (MDT International Aberdeen).He has worked in various Organisations like Coopers & Lybrand, Lagos (1987-1989) as Senior Consultant; First Finance & Trust Ltd ,Lagos as AGM Finance & Admin (1989-1992); Managing Director of Mars Home Savings & Loans Ltd. (1992-1998); Fymak Marine Services Ltd as the Group General Manager (2000-2004); and Seplat Petroleum Co Dev. Ltd as Capital Management & Treasury Manager (2010- January 2015). DR. DOROTHY BASSEY (Independent Non-Executive Director) 15 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

He is a Chartered Waste Manager and Environmentalist with over 20years professional experience. He holds a MEng Degree in Environmental Engineering. He is a professional member of the Chartered Institution of Waste Management (UK), and International Solid Waste Association (ISWA), Vienna. Ossai is a member of Landfill Technical Working Groups of ISWA. Mr OSSAI, Reuben M. (Managing Director): DR. TANEH ROSEMARY: (Ph.D., FCA) (Finance): MR OBOT SOLOMON: (TDU): Obot is passionate about meeting up with production and maintenance targets. Ensuring effective utilization of plant time with wealth of experience in instrumentation and repairs of process instruments effectively manage the process plant for thermal treatment of drilling waste, incineration of highly hazardous wastes in the oil and gas industry. Good knowledge in dealing with plant related issues such as Process flow instrument (temperature, pressure and heat) PLC Maintenance, Repair and Automation Plant Risk assessment and job safety analysis Plant evaluation, maintenance, modification and repairs. Plant audit for unsafe act, condition and modification. Treatment of drilling waste Treatment of hazardous and clinical waste with incinerator. Water based mud handling and treatment Effluent control and treatment. Waste water treatment. Rosemary holds a BSc (Accountancy), and MBA and a Ph.D. in Business Admistration. She is a Chartered Accountant with over 15 years industry exposure out of which, seven years was robust exposure in taxation and financ ial regulator y matter s . Rosemary also has good industry experience in cost management and financial Management and Budgeting. OUR MANAGEMENT STAFF 16 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

Bimbo holds an HND (Accountancy), and BSc (Banking and Finance). He is a Chartered Account with a wealth experience spanning over 25years. He has carved a niche for himself in Bu d g e t &Bu d g e t a r y c o n tr o l , Compliance Monitoring, Investigation and Forensic Accounting, tax and tax management. Mr ADAMS-AJIGBOTAJE Bimbo (Chief Internal Auditor): Mr URRAH, A. Emmanuel: (Incineration services): Mr Augustine Porbeni: (GM, Industrial Cleaning Services) Holds a B.Tech degree in Mechanical Engineering. He is a certified engineer in Blabo Tank Cleaning Technology and a member of the Nigerian Society of Engineers. Augustine has wealth of working experience of about 23years cutting across various areas in Project Management, Industrial Tank Cleaning, and the shipping industry. He is an electromechanical expert, with over 15years Plant operation and maintenance experience within the waste Management industry. He holds various Professional Certificates in Technical Operation and HSE, and he is also a Member of the Wastes Management Society of Nigeria. 17 2022 Annual Report & Accounts Mrs UKPEBOR, U. Stella: (QHSE): Mrs.Ukpebor holds an MSc degree in Occupational Health and Safety, with over 8 years work experience in v a r i o u s a s p e c t s o f Q H S E management in the Oil & Gas Sector. She is NEBOSH certified and an Associate Waste Manager. She is also a certified Environmental Specialist w i t h N a t i o n a l R e g i s t e r e d Environmental Professionals (NREP, USA). The Initiates Plc... Powered by Innovation and Consolidated experience

18 2022 Annual Report & Accounts Ms.ODEJOBI C.Olaide: (Company Secretary): Olaide holds a BL from the Nigerian Law School and has about 13years litigation experience. She is an Associate Member of the Institute of C h a r t e r e d S e c r e t a r i e s a n d Administrators of Nigeria and has carved a niche for herself in Corporate Practise, Board Secretariat functions, Regulatory compliance and Corporate Governance. Mavis holds a BSc. (Accountancy) with over 13 years' experience in Cash flow management. He is a professional member of the Chartered Institute of Purchasing and Supply Administrators of Nigeria and the Chartered Institute of Professional Managers and Administrators, USA. Mavis has demonstrated his wealth of experience on facility maintenance, procurement and logistics. The Initiates Plc... Powered by Innovation and Consolidated experience Mr. Mavis Okonye: (Support Service Manager):

As part of the Company's sustainability drive, the Management upon the Board's approval developed Committees to ensure the efficiency and effectiveness of her operations. The Committees developed are: The Procurement Committee which is responsible for management of vendor complaints, review of quotation for goods and services, assessment of market trends The Procurement Committee which is responsible for reviewing and controlling the Company's business risks including safety, environmental protection, financial and contractual risks, Project monitoring and control/ review of Project report for goods and services, assessment of market trends. The Personnel Management Committee which is saddled with the responsibility of staff welfare, dispute management, the engagement and discipline of staff of the Company MANAGEMENT COMMITTEES 19 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

The Directors have the pleasure of submitting to the members their report as well as the Audited Financial st Statement for the year ended 31 December, 2022. 1. Legal Form: The Company was incorporated as a Private Limited Liability Company under the Laws rd of the Federation of Nigeria on the 3 day of March,1995 with RC 266755.It became a Public limited th Company on the 24 day of June,2015, and was Listed on the floor of the Nigerian Stock th Exchange(NSE)on the 25 day of October, 2016. 2. Principal Activities: The Company is engaged in Waste Management and Industrial Cleaning services to both private and public sectors including the Oil and Gas Industry. 3. Result of Operations for the year: 4. Property, Plant & Equipment: Movements in plant, property and equipment during the year are as reflected in notes 15 of the notes to the financial statement 5. Directors: The names of Directors who held office during the period and at the date of this report are seen on page 25 Directors Remuneration: Non-Executive Directors remuneration comprises directors fees, sitting allowances and travel allowances; while Executive Director remuneration comprise salaries and other allowances payable during the year. 6. Directors' interest in shares: In accordance with section 301 of the Companies and Allied Matters Act,(CAMA) 2020 and the listing requirement of the NSE, the direct and Indirect interest of the Directors' shareholding as advised by the Registrars of the Company are: 20 REPORT OF THE DIRECTORS 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

Note: The Company represented by Director with indirect shareholding is: BELLIYKE LIMITED 7. Directors' interest in Contracts: In line with the provision of section 303 of CAMA 2020,none of the Directors has informed the Company of any interest(directly/indirectly) in any contract or proposed st contract with the Company as at 31 December,2021 or the date of this return. 8. Analysis of Shareholding: The shares of the Company were fully owned by Nigerian citizens and st Institutions. The following shareholders held more than 5% of the shares of the Company as at 31 December, 2022: THE INITIATES PLC LIST OF SHAREHOLDERS WITH 5% AND ABOVE Statement of Declaration: Aside from the four (4) substantial shareholders, NO OTHER individual(s) holds st 5% and above of the issued and fully paid shares of the Company as at 31 December, 2022 or the date of this return. S/N NAME ADDRESS HOLDINGS % 1 DVCF OIL & GAS PLC FIFTH FLOOR,94,BROAD STREET,LAGOS , LAGOS 322,828,822 36.27 2 OSSAI REUBEN M 2, RUMUCHIORLU STREET OFF ADA GEORGE ROAD, RUMUEME PORTHARCOURT , RIVERS 190,695,237 21.43 3 AFOLAYAN SAMUEL 1, OGENDEMGBE STREET, APAPA, LAGOS 65,453,152 7.35 4 OBOHOZOHEREBE GORDON 4,NTEIN STREET,AKPAJO-ELEME(2ND MARKET) P/HARCOURT, RIVERS STATE 58,568,412 6.58 637,545,623 71.64 21 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

THE INITIATES PLC RANGE ANALYSIS AS OF 31ST DECEMBER 2022 RANGE HOLDERS VOLUMN % 1 1000 135 45,335 0.01 1001 5000 22 55,667 0.01 5001 10000 12 101,382 0.0 10001 50000 26 828,896 0.09 50001 100000 18 1,399,728 0.16 100001 500000 40 7,715,516 0.87 500001 1000000 5 3,386,259 0.38 1000001 AND ABOVE 29 876,448,769 98.48 TOTALS 287 889,981,552 100.00 9. Fraud/Forgery: There was no forgery recorded during the year under review. 10. Format of Financial Statement: The Financial statement of The Initiates Plc have been prepared in accordance with the Financial reporting council of Nigeria as well as the International Financial Reporting Standards. 11. Employment and Employee: Employee welfare: The Company places high premium on the health, safety and welfare of its employees in their places of work. To this end, the Company has various forms of insurance policies including group life insurance to adequately secure and protect its employees. The Company also provides allowances to its employees at all levels for feeding, transport and housing. Equal opportunities are also given during a highly competitive recruitment process and there is no discrimination on gender, race or tribe. 12. Donations: The Company made no donation during the year under review. 13. Free Float: The Free float of a Company is the proportion of its shares that are held by investors who are likely to be willing to trade the shares on the Securities Exchanges. In line with the Nigerian st Exchange Limited's rules, the Company's free float as at 31 December, 2022 is above 20% as can be seen below: 22 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

14. Auditors: The auditors, Messer's Madu, Onyekwena& co. indicated their willingness to continue in office in accordance with section 401 (1) and (2) of the Companies and Allied Matters Act, CAMA2020. th Dated this 29 March, 2023 By Order of the Board OLAIDE ODEJOBI Company Secretary FRC/2017/NBA/00000016739 23 T H E IN IT IA T E S P L C S H A R E HO L D ING S T R U C T U R E A N D F R E E F L O A T S T A U S A S A T T H E P E R IO D E N D E D 3 1 S T D E C E M B E R 2 0 2 2 C O M P A N Y N A M E : T H E IN IT IA T E S P L C . B O A R D L IS TE D : G R O W T H B O A R D YE A R E N D : D E C E M B E R R E P O R T IN G P E R IO D F O U R TH Q U A R TE R 2 0 2 2 F O U R T H Q U A R T E R (1 S T O C T O B E R - 3 1 S T D E C E M B E R 2 0 2 2 ) S H A R E P R IC E A T E N D O F R E P O R TIN G P E R IO D : N 0 .4 0 (2 0 2 1 : N 0 .4 0 ) U N IT S P E R C E N T AG E (IN R E L AT IO N T O IS S U E D S H AR E C AP IT AL ) % U N IT S P E R C E N T AG E (IN R E L AT IO N T O IS S U E D S H AR E C AP IT AL ) % Is s u e d S ha re C a pita l @ 50 K ob o p e r s h are 9 0 0 ,0 0 0,00 0 1 00 % 9 0 0,0 00 ,0 0 0 1 0 0 % D VC F O IL & G AS P L C 3 2 2 ,8 2 8,82 2 35 .8 7 3 2 2,8 28 ,8 2 2 3 5.8 7 O S S AI R E U B E N M 1 9 0 ,6 9 5,23 7 21 .1 9 1 9 0,6 95 ,2 3 7 2 1.1 9 A FO LA YA N SA M U E L 7 3 ,5 4 6,06 1 8 .1 7 6 5,4 53 ,1 5 2 7.2 7 O B O H -O ZO H E R E B E G O R D O N 5 8 ,5 6 8,41 2 6 .5 1 5 8,5 68 ,4 1 2 6.5 1 T o ta l S u b s tan tia l S h a re h o ld in g s 6 4 5 ,6 3 8,53 2 71 .7 4 6 3 7,5 45 ,6 2 3 7 0.8 4 ANO S IK E H JO E O G B O N N A 2 0 ,2 9 5,79 6 2 .2 6 1 8,2 95 ,7 9 6 2.0 3 AL IK O R AC HI E D W AR D 1 ,1 2 6,76 1 0 .1 3 1,1 26 ,7 6 1 0.1 3 E B IN U M JO E S E P H ( IND IR E C T - B E L L IYK E L IMITE D ) 3 7 ,5 5 0,00 0 4 .1 7 3 7,5 50 ,0 0 0 4.1 7 O B O H C H AR LE S AR O AW O D E 1 ,0 0 0,00 0 0 .1 1 1,0 00 ,0 0 0 0.1 1 T o ta l D ire c to rs’ S h a re h o ld in g s 5 9 ,9 7 2,55 7 6 .6 6 5 7,9 72 ,5 5 7 6.4 4 E MP LO YE E S 5 ,4 3 2,28 2 0 .6 0 5,4 32 ,2 8 2 0.6 0 T o ta l o f O th e r In flu e n ti a l S h a re h o ld in g s 5 ,4 3 2,28 2 0 .6 0 5,4 32 ,2 8 2 0.6 0 T o ta l o f O th e r In flu e n ti a l S h a re h o ld in g s 5 ,4 3 2,28 2 0 .6 0 5,4 32 ,2 8 2 0.6 0 F re e F lo a t in U n it a n d P e rc e n ta g e 1 8 8 ,9 5 6,62 9 21 .0 0 1 8 8,9 56 ,6 2 9 2 1.0 0 F re e F lo a t in V a lu e (A ) T H E IN IT IA T ES P lc w ith a fre e flo a t p e rc e n ta g e o f 2 1% a s a t 3 1 st D e c e m b e r 2 0 2 2 , is co m p li a n t w ith T h e Ex ch a n g e 's fre e flo a t re q u ire m e n ts fo r co m p a n ie s liste d o n th e G R O W T H B o a rd . (B ) T H E IN IT IA T ES P lc w ith a fre e flo a t V a lu e o f N 7 5 ,5 8 2 ,6 5 1 .6 0 a s a t 3 1 st D e c e m b e r 2 0 2 2 is co m p li a n t w ith T h e Ex ch a n g e 's fre e flo a t re q u ire m e n ts fo r co m p a n ie s liste d o n th e G R O W T H B o a rd . D e ta il s o f O th e r In flu e n tia l sh a re h o ld in g s, if a n y (E.g . G o v e rn m e n t, P ro m o te rs) 2 02 2 20 2 1 D E S C R IP T IO N N 7 5 ,5 82 ,65 1 .6 0 N 9 3 ,5 5 3.2 82 .8 6 D e tails o f S u b stan tia l S h ar e h o ld in g s (5 % an d ab o v e ) D e tails o f D ire c to rs S h a re h o ld in g s (d ire c t an d in d ir e c t), e x clu d in g d ire cto rs ’ h o ld in g su b s tan tia l in te re sts 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

CORPORATE GOVERNANCE REPORT 24 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

25 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

The Complaints Management Policy of The Initiates Plc has been prepared pursuant to the requirements of the Securities and Exchange Commission's rules relating to the Complaint Management Framework of the Nigerian Capital Market. The Policy has been prepared in recognition of the importance of effective engagement in promoting shareholder/investor confidence in the Company. This policy sets out the framework by which the Company and its registrar provide assistance regarding shareholder issues and concerns. It also provides opportunity for Shareholders to provide feedback to the Company on matters that affect Shareholders. This policy relates only to Shareholders of The Initiates Plc and is designed to ensure that Complaints and enquiries are managed in a timely, effective and efficient manner. GUIDING PRINCIPLES FOR MANAGING COMPLAINTS: 1. Confidentiality: All Complaints shall be handled in strict confidence and all personal information of Complainants would be adequately protected. 2. Mode of making Complaints/enquiries: A Complaints lodgement form would be made available to all Shareholders to state their complaints/enquiries and access relevant information in the following manner: a. Contact the Registrar: Shareholders who wish to make a Complaint/enquiry shall in the first instance contact the Registrar, Apel Capital Registrars Limited at 8, Alhaji Bashorun Street, off Norman Williams crescent, South west, Ikoyi, Lagos. The Registrar manages all the registered information relating to all Shareholdings, Shareholders names, addresses and dividend payment instructions amongst others. Upon receipt of a Complaint/enquiry, The Initiates Plc would be notified of such monitoring, record keeping b. Contact the Company Secretary: If the Registrar is unable to satisfactorily address the Shareholders enquiries and resolve their complaints, then Shareholders should contact the office of the Company Secretary 3. Feedback: Where a Complaint/enquiry is sent directly to the Company; The Initiates Plc shall upon receipt of the Complaint/enquiry use its best endeavours in ensuring that: a. The Complaints/enquiries are recorded b. Prompt and timely response is given to the Complaints c. The Nigerian Stock Exchange is promptly notified of the Complaints/enquiries d. Notify the Shareholder promptly if complaints/enquiries cannot be treated immediately 4. Form of Complaint/Enquiries register: The Complaints register shall be in an electronic form compromising the following: a. The date of the Complaint b. The details/information of the Complainant c. The nature/description of the Complaint d. The steps/action taken to resolve the Complaint 5. This Policy shall be made available on the Company's website (www.ini atesgroup.com) the Registrars and by contacting the office of the Company Secretary of The Initiates Plc 6. The Complaints Management Policy is subject to review from time to time by the Company SECURITIES TRADING POLICY: In line with rule 17:15 of the Disclosure of Dealings in Issuer's shares, Rulebook of the Exchange, The Initiates Plc has a trading policy which applies to all the employees and Directors who may at a time possess any insider or material information about the Company. During the year under review, no insider including employees, Directors participated in any insider dealing or assisted any member or any person to participate in such insider dealing in compliance with the trading policy. Olaide Odejobi Company Secretary FRC/2017/NBA/00000016739 COMPLAINTS MANAGEMENT POLICY FRAMEWORK 26 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

In accordance with the provisions of the Companies and Allied Matters Act, the Directors are required to prepare Financial statements for the year which gives a true and fair view of the state of financial affairs of the Company.The Directors' responsibility includes ensuring that the Company: a. Keeps proper accounting records which discloses with reasonable accuracy, at any time, the financial position of the Company; b. Preparation of the Financial statements in compliance with the provisions of the Companies and Allied Matters Act as well as the International Financial Reporting Standards; c. Establishes adequate internal control to safeguard its assets and to prevent and detect fraud and other irregularities. The Directors accept responsibility for the annual Financial Statements which have been prepared using appropriate accounting policies supported by reasonable and prudent judgment in conformity with the International Financial Reporting Standards issued by the International Accounting Standards Board and the Companies and Allied Matters Act, 2020. The Directors are of the opinion that the Financial statement give a true and fair view of the state st of the Financial affairs of the Company ended 31 December, 2022. The Directors further accept responsibility of the maintenance of the Accounting records that may be relied upon in the preparation of the Financial Statement. Nothing has come to the attention of the Directors indicating that the Company will not remain a going concern in the coming year ahead. Signed on behalf of the Board of Directors by: Reuben Mustapha Ossai Joe Ogbonna Anosikeh Managing Director Chairman FRC/2014/NIAECHI/00000009687 FRC/2014/NIS/00000008836 27 STATEMENT OF DIRECTOR'S RESPONSIBILITY ST FOR THE YEAR ENDED 31 DECEMBER, 2022 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

28 REPORT OF INDEPENDENT AUDITORS 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

29 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

30 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

In compliance with Section 404(7) of the Companies and Allied Matters 2020, and Section 60(2) of the Investment and Securities Act 2007, we have reviewed the Audit report for the year ended 31st December, 2022 and hereby state as follows: st 1. We examined the scope and planning of the audit for the year ended 31 December 2022; this was in our opinion adequate. 2. We also reviewed the External Auditors' Management letter for the year as well as the Management's response thereon. 3. We ascertained that the Accounting and reporting policies of the Company for the year ended st 31 December 2022 are in accordance with legal requirements and agreed ethical practices. st In our opinion, the scope and planning of the audit for the year ended 31 December, 2022 was adequate and Management's response to Auditors' findings thereon was satisfactory. th Dated this 28 day of March 2023 Mr. Christian Ugochukwu Nwanma FRC//2017//ICAN//00000016424 Chairman, Audit Committee Members of the Committee: Mr. Christian Ugochukwu Nwanma - Chairman/Shareholder representative Sir Enoch Iwueze- Shareholder Representative Mr.Olushola Adegbite- Shareholder representative Prof.Edward Alikor - Non-Executive Director Mr. Joseph Ebinum - Non-Executive Director 31 REPORT OF AUDIT COMMITTEE 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

THE INITIATES PLC STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Continuing Ope rations Note N N Revenue 6 841,469,215 333,899,008 Cost of sales 7 (641,990,433) (271,865,809) Gross profit 199,478,782 62,033,199 Other income 8 17,447,479 27,329,567 Administrative expenses 9 (240,599,790) (122,322,432) Result from operating activities 11 (23,673,529) (32,959,666) Finance cost 12 (19,698,085) (29,276,823) Loss before tax (43,371,614) (62,236,489) Income tax expense 13.1 (10,331,054) (15,004,809) Loss for the year (53,702,668) (77,241,298) Othe r Comprehensive income Items that will not be re classified to profit or loss: Defined benefit plan actuarial gain/loss 14 - - Revaluation surplus on property, plant and equipment 15.3 - - Total items that will not be re classified to profit or loss - - Items that may be re classified to profit or loss: - - Othe r comprehensive income for the year - - Total comprehensive loss for the year (53,702,668) (77,241,298) Loss pe r share Basic and diluted earnings per share (kobo) 19 (6) (9) The notes on pages 11 to 55 form part of these financial statements. 32 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

TH E IN ITIA TE S P L C S T A TE M E N T O F FIN A N C IA L PO S ITIO N A S A T 3 1 D E C E M B E R 2 0 2 2 2 0 2 2 2 0 2 1 N o te N N A s s e ts N o n -c u rre n t as s e ts P rope rty, pla nt a nd e quipm e nt 15 1,140,204,567 833,863,484 A ss e t-in-tra nsit 16 265,057,884 - O the r non-c urre nt a ss e ts 17 31,218,067 29,048,667 Inve stm e nts 18 105,140,247 6,307,001 1,541,620,765 869,219,152 C u rre n t as s e ts Inve ntorie s 20 14,931,947 6,421,555 T ra de a nd othe r re c e iva ble s 21 293,883,501 159,103,023 C a s h a nd c a s h e quiva le nts 22 159,028,727 658,175,730 C urre nt ta x a ss e ts 23 62,910,235 78,079,975 O the r c urre nt a ss e ts 24 17,643,299 23,450,252 T o tal c u rre n t as s e ts 548,397,709 925,230,535 T o tal A s s e ts 2 ,0 9 0 ,0 1 8 ,4 7 4 1 ,7 9 4 ,4 4 9 ,6 8 7 E q u ity an d L iab ilitie s E q u ity S ha re c a pita l 25 444,990,776 444,990,776 S ha re pre m ium 26 17,780,000 17,780,000 R e va lua tion re s e rve 27 303,473,535 303,473,535 R e ta ine d e a rnings 28 (53,379,368) 323,300 T o tal e q u ity 712,864,943 766,567,611 N o n -c u rre n t liab ilitie s D e fe rre d ta x lia bilitie s 13.4 82,519,191 123,084,353 B orrow ings 32.1 700,000,000 700,000,000 782,519,191 823,084,353 C u rre n t liab ilitie s T ra de a nd othe r pa ya ble s 29 458,006,936 122,172,083 C urre nt ta x lia bilitie s 13.2 7,550,070 834,428 O the r c urre nt ta x lia bilitie s 30 126,139,797 80,864,267 E m ploye e s' be ne fits 31 2,937,537 926,945 T o tal c u rre n t liab ilitie s 594,634,340 204,797,723 T o tal liab ilitie s 1,377,153,531 1,027,882,076 T o tal e q u ity an d liab ilitie s 2 ,0 9 0 ,0 1 8 ,4 7 4 1 ,7 9 4 ,4 4 9 ,6 8 7 T he s e fina nc ia l sta te m e nts w e re a pprove d by the B oa rd of D ire c tors on 29 M a rc h, 2023 a nd signe d on its be ha lf by: … … … … … … … … … … … … … … … … .. … … … … … … … … … … … … … … … … .. M r. J oe O gbonna A nosike h M r. R e ube n M usta pha O ss a i C ha irm a n M a na ging D ire c tor FR C N o:FR C /2014/N IS /00000008836 FR C N o:FR C /2014/N IA E C H I/00000009687 … … … … … … … … … … … … … … … … .. D r. R os e m a ry T a ne h C hie f F ina nc e O ffic e r FR C N o:FR C /2017/IC A N /00000016060 T he note s on pa ge s 11 to 55 form pa rt of the s e fina nc ia l sta te m e nts. 33 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

THEINITIATES PLC STATEMENT OF CHANGES IN EQUITY YEAR ENDED 31 DECEMBER 2022 Share Share Revaluation Retained Total capital premium reserve earnings Equity N N N N N At 1 January 444,990,776 17,780,000 303,473,535 323,300 766,567,611 Loss for the year - - - (53,702,668) (53,702,668) At 31 December 444,990,776 17,780,000 303,473,535 (53,379,368) 712,864,943 YEAR ENDED 31 DECEMBER 2021 Share Share Revaluation Retained Total capital premium reserve earnings Equity N N N N N At 1 January 444,990,776 17,780,000 303,473,535 77,564,598 843,808,909 Loss for the year - - - (77,241,298) (77,241,298) At 31 December 444,990,776 17,780,000 303,473,535 323,300 766,567,611 34 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Note N N Cash flows from operating activities Loss after tax (53,702,668) (77,241,298) Depreciation 43,917,884 44,260,947 Interest received (640) - Finance cost 19,698,085 29,276,823 Changes in working capital: Increase in other non-current assets (2,169,400) (19,048,667) Increase in inventories (8,510,392) (1,305,944) Increase in trade and other receivables (134,780,478) (39,348,918) Decrease in current tax assets 15,169,740 47,321,969 Decrease/(increase) in other current assets 5,806,953 (9,468,847) (Decrease)/increase in non-current liabilities (40,565,162) 14,170,061 Increase in trade and other payables 355,128,302 72,214,153 Increase/(decrease) in employees benefits 2,010,592 (1,691,347) Increase/(decrease) in current tax liabilities 6,715,642 (59,272,687) Increase in other current tax liabilities 45,275,530 16,679,761 Cash used by operations 253,993,988 16,546,006 Tax paid - (999,500) Net cash used in operating activities 253,993,988 15,546,506 Cash flows from investing activities Acquisition of property, plant and equipment 15 (633,677,455) (22,986,719) Investment in subsidiary (98,833,246) - Interest received 8 640 - Net cash used in investing activities (732,510,061) (22,986,719) Adjustment to reconcile loss to net cash provided by operating activities; 35 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

THEINITIATES PLC STATEMENT OF CASHFLOWS (CONTD) FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Note N N Cash flows fromfinancing activities Borrowings 5,000,000 729,500,000 Repayment of borrowings (5,000,000) (46,500,000) Unclaimed dividends returned - 3,010,623 Interest on unclaimed dividends 366,415 241,055 Unclaimed dividends paid to Shareholders (1,299,260) - Finance cost 12 (19,698,085) (29,276,823) Net cash used by financing activities (20,630,930) 656,974,855 Net (decrease)/increase in cash and cash equivalents (499,147,003) 649,534,642 Cash and cash equivalents at 1 January 658,175,730 8,641,088 Cash and cash equivalents at 31 December 22 159,028,727 658,175,730 36 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

THE INITIATES PLC NOTES TO THE FINANCIAL STATEMENTS 1. General Information 1.1 Reporting entity 1.2 Principal activities 1.3 Financial period 2. Significant Accounting Policies 2.1 Statement of compliance The components of the financialstatements are: - Statement of profit or loss and other comprehensive income - Statement of financial position - Statement of changes in equity - Statement of cash flows - Notes to the financialstatements The financialstatements are authorised for issue by the Company's Board of Directors on 29 March 2023. The financialstatements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB) and the interpretations issued by the International Financial Reporting Interpretation Committee (IFRIC) and the requirements of the Companies and Allied Matters Act 2020 and the Financial Reporting Council (FRC) of Nigeria Act, 2011. The principal accounting policies applied in the preparation of these financialstatements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. These financialstatements cover the financial period from 1 January 2022 to 31 December 2022, with comparative for year ended 31 December 2021. The company was incorporated under the Companies and Allied Matters Act 1990 as a Limited Liability Company on 3 March 1995 and commenced business in February 1997. On 23 March 2015, the company was re-registered and converted to public limited company and accordingly changed its name from The Initiates Limited to The Initiates Plc. The registered address of the Company is located at Plot 400, Shell Location Road, Off Aba/PH Expressway, By Oyigbo Junction, Umuebule 5, Rivers State. The company's principal activities include waste management services, E-waste management services and industrial cleaning and decontamination services. 37 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

TH E IN ITIA TE S P L C N O TE S TO TH E F IN A N C IA L STA TE M E N TS 2 .2 B a sis o f me a s ure me nt - Invento rie s at the low er o f co st and net realisab le value - P ro p erty, p lant and eq uipment at reva lued amo unt - The financial instruments (b o rrow ings) measured a t amo rtized co st 2 .3 Functiona l and pre s e nta tion curre ncy 3 . Adoption o f ne w and re v is e d Inte rna tiona l Financia l R e po rting S tanda rds (IFR S s) R e quire d to be im ple m e nte d fo r pe rio ds be g inning Pro no unc e m e nt N ature o f c hang e o n o r afte r a . IFR S 9 1 J a nua ry 2018 Fina nc ia l Instrume nts b. IFR S 15 1 J a nua ry 2018 The financ ial statements have b een p rep ared o n the histo rical co st b asis excep t fo r the fo llow ing: IFR S 9 se ts out re quireme nts for re c ognising a nd me a suring fina nc ia l a ss e ts, fina nc ia l lia bilitie s a nd some c ontra c ts to buy or s e ll non-fina nc ia l items, a single a pproa c h to de te rmine w he the r a fina nc ia l a ss e t is me a sure d a t amortis e d c ost or fa ir va lue a nd a single impa irme nt me thod. T his sta nda rd ha s re pla c e d IA S 39; Fina nc ia l instrume nts, re c ognition a nd me a sureme nt. This sta nda rd is a re pla c eme nt of IA S 11 – C onstruc tion C ontra c ts, IA S 18 – R e ve nue , IFR IC 13 – C ustome r Loya lty P rogramme s, IFR IC 15 – A gre eme nt for the C onstruc tion of R e a l E sta te , IFR I 18 – T ra nsfe r of A ss e ts from C ustome rs a nd SIC 31 – R e ve nue – B a rte r Tra ns a c tions Involving A dve rtising Se rvic e s. R e ve nue from C ontra c ts w ith c ustome rs The ame ndme nt doe s not c ha nge the unde rlying princ iple s of the sta nda rd, the y c la rify a nd offe r some a dditiona l tra nsition re lie f. These financial statements are p resented in N a ira, w hich is the C omp any’s functio nal currency. A ll financial info rmatio n p resented in N aira has b een ro und ed to the ne arest tho usand excep t w he re o therwise ind icated . The fo llow ing revisio ns to acco unting stand ard s and p ro no unc ements w ere issued and mad e effective b eginning o n o r after 1 January 2 0 1 8 . 38 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

THE INITIATES PLC NOTES TO THE FINANCIAL STATEMENTS Required to be implemented for periods beginning Pronouncement Nature of change on or after c. IFRS 16: Leases 1 January 2019 Applying that model, a lessee is required to recognise: d 1 January 2019 (a) assets and liabilities for all leases with a term of more than 12 months, unless the underlying assets is of low value; and The IASB issued a narrow scope amendment to IFRS 9 to enable entities to measure some prepayable financial assets with negative compensation at amortised cost. However, to qualify for amortised cost measurement, the negative compensation must be 'reasonable compensation for early termination of the contract'. and the asset must be held within a 'held to collect' business model. Amendments to IFRS 9 - Financial Instruments (Prepayment features with negative compensation) No significant changes have been included for lessors. IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17. Accordingly, a lessor continues to classify its leases as operating leases or finance leases, and to account for those two types of leases differently. IFRS 16 also includes extensive new disclosure requirements for both lessees and lessors. IFRS 16 was published in January 2016. It sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e. the customer (‘lessee’) and the supplier (‘lessor’). IFRS 16 replaces the previous leases Standard, IAS 17 Leases, and related Interpretations. IFRS 16 eliminates the classification of leases as operating leases or finance leases as required by IAS 17 and introduces a single model for lessees which will result in almost all leases being included in the Statement of Financial Position. (b) depreciation of lease assets separately from interest on lease liabilities in the profit or loss. 39 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

THE INITIATES PLC NOTES TO THE FINANCIAL STATEMENTS Required to be implemented for pe riods be ginning Pronouncement Nature of change on or afte r e IFRS 17 Insurance 1 January 2019 Contracts f 1 January 2019 g 1 January 2019 IFRS 17 was issued in May 2017 as replacement for IFRS 4 - Insurance Contracts. It requires a current measurement model where estimates are remeasured in each reporting period. The measurement is based on the building blocks of discounted, probabilityweighted cash flows, a risk adjustment and a contractual service margin (CSM) representing the unearned profit of the contract. The IASB issued a narrow scope amendment to IAS 28 that clarifies that these long term interests in an Associate or Joint Venture to which the equity method is not applied should be accounted for using IFRS 9. This includes the impairment requirements in IFRS 9. Amendments to IAS 28- Investment in Associates (Long term interests in Associates & Joint Ventures) IFRIC 23 Uncertainty over Income Tax Treatment IFRIC 23 sets out how to determine the accounting tax position when there is uncertainty over income tax treatments. The Interpretation requires an entity to: (i) determine whether uncertain tax positions are assessed separately or as a group; and (ii) assess whether it is probable that a tax authority will accept an uncertain tax treatment used, or proposed to be used, by an entity in its income tax filings. If yes, the entity should determine its accounting tax position consistently with the tax treatment used or planned to be used in its income tax filings. If no, the entity should reflect the effect of uncertainty in determining its accounting tax position. On initial application of IFRIC 23, an entity shall apply this Interpretation either: (a.) retrospectively applying IAS 8, if that is possible without the use of hindsight; or (b.) retrospectively with the cumulative effect of initially applying the Interpretation recognised at the date of initial application. If an entity selects this transition approach, it shall not restate comparative information. 40 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

THE INITIATES PLC NOTES TO THE FINANCIAL STATEMENTS Re quire d to be imple me nte d for pe riods be ginning Pronounce me nt Nature of change on or afte r h 1 January 2020 i 1 January 2020 j 1 January 2020 Instead, the entity shall recognise the cumulative effect of initially applying the Interpretation as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate). The date of initial application is the beginning of the annual reporting period in which an entity first applies this Interpretation. In terms of applying IFRIC 23, an entity shall reflect the effect of uncertainty for each uncertain tax treatment by using either of the follow ing methods, depending on w hich method the entity expects to better predict the resolution of the uncertainty: (a.) the most likely amount – the single most likely amount in a range of possible outcomes. The most likely amount may better predict the resolution of the uncertainty if the possible outcomes are binary or are concentrated on one value. (b.) the expected value – the sum of the probability w eighted amounts in a range of possible outcomes. These amendments w ere issued in March 2018. Included in the revised conceptual framew ork are revised definitions of an asset and a liability as well as new guidance on measurement and derecognition, presentation and disclosure. The amendments focused on areas not yet covered and areas that had shortcomings. Revised Conceptual Framew ork for Financial Reporting Amendments to IAS 1 and IAS 8 - Definition of Material Amendments to IFRS 3 - Definition of Business The amendments clarify that while businesses usually have outputs, outputs are not required for an integrated set of activities and assets to qualify as a business. To be considered a business an acquired set of activities and assets must include,at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. Additional guidance is provided that helps to determine whether a substantive process has been acquired. The amendments introduce an optional concentration test that permits a simplified assessment of w hether an acquired set of activities and assets is not a business. Under the optional concentration test, the acquired set of activities and assets is not a business if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar assets. In October 2018, the IASB issued amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to align the definition of ‘material’ across the standards and to clarify certain aspects of the definition. The new definition states that, 'Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, w hich provide financial information about a specific reporting entity. The amendments to the definition of material is not expected to have a significant impact on the Company's financial statements. 41 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

TH E IN ITIA TE S P L C N O TE S TO TH E F IN A N C IA L STA TE M E N TS 4 . S umma ry o f significant a ccounting po licie s P age numb er 4 .1 F o reign currency 1 6 4 .2 F inancial instruments 1 6 4 .3 P ro p erty, p lant and eq uipment 2 2 4 .4 Invento ries 2 4 4 .5 Imp airment o f no n-financial assets 2 4 4 .6 Emp lo yee b enefits 2 5 4 .7 P ro visio ns 2 6 4 .8 C o ntingent liab ilities 2 6 4 .9 S tatement o f C ash flow s 2 6 4 .1 0 Revenue 2 7 4 .1 1 Income taxes 2 8 4 .1 2 Divid end s 2 9 4 .1 3 Earnings p er share 2 9 4 .1 4 S egment rep o rting 2 9 4 .1 5 Related p arties 2 9 4 .1 Fo re ign curre ncy transla tion 4 .2 Financia l instrume nts The C omp any has co nsistently ap p lied the fo llow ing acco unting p o licies to all p erio d s p resented in these financial statements. S et o ut b elow is an ind ex o f the significant acco unting p o licies, the d etails o f w hich are availab le o n the p ages that fo llow . Transactio ns d enominated in fo reign currencies are translated and reco rd ed in N aira at the actual exchange rates at the d ates o f the transactio ns. M o netary assets and liab ilities d enominated in fo reign currencies at the rep o rting d ate are retranslated to the functio nal currency at the rates o f exchange p revailing at that d ate. The fo reign currency gain o r lo ss o n mo netary items is the d ifference b etween amo rtized co st in the functio nal currency at the b eginning o f the p erio d , ad justed fo r effective interest and p ayments d uring the p erio d , and the amo rtized co st in fo reign currency translated at the exchange rate at the end o f the rep o rting p erio d . F o reign currency d ifferences arising o n retranslatio n are reco gnized in p ro fit o r lo ss. N o n-mo netary items that are measured in terms o f histo rical co st in a fo reign currency are translated using the exchange rate at the d ate o f the transactio n. F inancial assets and financial liab ilities are reco gnised in the C omp any’s statement o f financial p o sitio n when the C omp any b ecomes a p arty to the co ntractual p ro visio ns o f the instrument. W ith the excep tio n o f trad e receivab les that d o no t co ntain a significant financing comp o nent o r fo r w hich the C omp any has ap p lied the p ractical exp ed ient, financial instruments are initially measured at their fair value, excep t in the case o f financial assets and financial liab ilities reco rd ed at F air V alue Thro ugh P ro fit o r Lo ss (F VP L). Transactio n co sts are ad d ed to , o r sub tracted from this amo unt. Trad e receivab les that d o no t co ntain a significant financing comp o nent o r fo r w hich the C omp any has ap p lied the p ractical exp ed ient are measured at the transactio n p rice d etermined und er IFRS 1 5 . Refer to the acco unting p o licies o n Revenue from co ntracts w ith customers. 42 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

THE INITIATES P LC NOTES TO THE F IN ANC IAL STATEMEN TS I Financial ass e ts Classification of financial ass e ts Debt instruments that meet the following conditions are measured subsequently at amortised cost: Amortis e d cost and e ffe ctive inte re st me thod The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. For purchased or originated credit-impaired financial assets, a credit-adjusted effective interest rate is calculated by discounting the estimated future cashflows, including expected credit losses, to the amortised cost of the debt instrument on initial recognition. The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is the amortised cost of a financial asset before adjusting for any loss allowance. Interest income is recognised using the effective interest method for debt instruments measured subsequently at amortised cost. For financial assets other than purchased or originated credit-impaired financial assets, interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except for financial assets that have subsequently become credit-impaired (see below). For financial assets that have subsequently become credit-impaired, interest income is recognised by applying the effective interest rate to the amortised cost of the financial asset. If, in subsequent reporting periods, the credit risk on the credit-impaired financial instrument improves so that the financial asset is no longer credit-impaired, interest income is recognised by applying the effective interest rate to the gross carrying amount of the financial asset. Interest income is recognised in profit or loss and is included in the "finance income – interest. All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. All recognised financial assets are measured subsequently in their entirety at either amortised cost or fair value, depending on the classification of the financial assets. • the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and • the contractual terms of the financial asset give rise on specified dates to cashflows that are solely payments of principal and interest on the principal amount outstanding. For financial assets other than purchased or originated credit impaired financial assets (i.e.assets that are credit-impaired on initial recognition), the effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) excluding expected credit losses, through the expected life of the debt instrument, or, where appropriate, a shorter period, to the gross carrying amount of the debt instrument on initial recognition. 43 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

THE INITIATES P LC NOTES TO THE F INANCIAL STATEMENTS Fore ign e xchange gains and loss e s Impairme nt of financial ass e ts (i) Significant incre as e in cre dit risk The carrying amount of financial assets that are denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period. Specifically for financial assets measured at amortised cost that are not part of a designated hedging relationship, exchange differences are recognised in the statement of profit or loss. • an actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating; • significant deterioration in external market indicators of credit risk for a particular financial instrument, e.g. a significant increase in the credit spread, the credit default swap prices for the debtor, or the length of time or the extent to which the fair value of a financial asset has been less than its amortised cost; • existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debt obligations; The Company recognises a loss allowance for expected credit losses (ECL) on debt instruments that are measured at amortised cost (trade receivables and short-term deposits). The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Company always recognises lifetime ECL for trade receivables. The expected credit losses on these financial assets are estimated using a provision matrix based on the C ompany’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. For all other financial instruments, the C ompany recognises lifetime EC L when there has been a significant increase in credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECL. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime EC L that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the C ompany compares the risk of a default occurring on the financial instrument at the reporting date with the risk of a default occurring on the financial instrument at the date of initial recognition. In making this assessment, the C ompany considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. Forward-looking information considered includes the future prospects of the industries in which the Company’s debtors operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and other similar organisations, as well as consideration of various external sources of actual and forecast economic information that relate to the Company’s core operations. In particular, the following information is taken into account when assessing whether credit risk has increased significantly since initial recognition: 44 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

TH E IN ITIA TES P L C N O TES TO TH E F IN A N C IA L STA TE M E N TS • an actual or expected significant deterioration in the op erating results of the debtor; • significant increases in credit risk on other financial instruments of the same debtor; (1) The financial instrument has a low risk of default, 2) The debtor has a strong capacity to meet its contractual cash flow obligations in the near term, and (ii) D e finition of de fault • when there is a breach of financial covenants by the debtor; or (iii) Cre dit-impaire d financial ass e ts (a) significant financial difficulty of the issuer or the borrower; (b) a breach of contract, such as a default or past due event (d) it is becoming probable that the borrower will enter b ankruptcy or other financial reorganisation; A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidenc e that a financial asset is credit-impaired includes observable data about the following events: (c) the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider; The C ompany considers a financial asset to have low credit risk when the asset has external credit rating of 'investment grade’ in accordance with the globally unde rstood definition or if an external rating is not available, the asset has an internal rating of ‘performing’. P erforming means that the counterparty has a strong financial position and there is no past due amounts. (3) Adverse changes in economic and business conditions in the longer term may, but will not necessarily reduce the ability of the borrower to fulfil its contractual cash flow o bligations. The C ompany regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the amount becomes past d ue. • an actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations. Irrespective of the outcome of the above assessment, the C ompany presumes that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due, unless the C ompany has reasonable and supportable informatio n that demonstrates otherwise. Despite the foregoing, the C ompany assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have low credit risk at the reporting date. A financial instrument is determined to have low credit risk if: The C ompany considers the following as constituting an event of default for internal credit risk management purposes as historical experience indicates that financial assets that meet either of the following criteria are generally not recoverable: • information developed internally or obtained from exte rnal sources indicates that the debtor is unlikely to pay its creditors, including the C ompany, in full (without taking into account any collateral held by the C ompany). Irrespective of the above analysis, the C ompany consid ers that default has occurred when a financial asset is more than 60 days past due unless the C ompany has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate. 45 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

THE INITIATES PLC NOTES TO THE F INANCIAL STATEMENTS (iv) Write off policy (v) M e asurement and re cognition of e xpe cted cre dit loss e s De re cognition of financial asse ts The Company writes off a financial asset when there is sufficient information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when all economic attempts to recover the outstanding amount have failed or when the period within which the debt can be legally enforced has expired or unable to locate debtor or debtor passed away leaving no asset, which ever occurs sooner. For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date.The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received. On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognised in profit or loss. Financial assets written off may still be subject to enforcement activities under the Company’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognized in profit or loss. The measurement of expected credit losses is a function of the probability of default, loss given default (i.e.the magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information as described above. As for the exposure at default, for financial assets, this is represented by the assets’ gross carrying amount at the reporting date. For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate. If the Company has measured the loss allowance for a financial instrument at an amount equal to lifetime ECL in the previous reporting period, but determines at the current reporting date that the conditions for lifetime ECL are no longer met, the Company measures the loss allowance at an amount equal to 12-month ECL at the current reporting date, except for assets for which simplified approach was used. The Company recognises an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account. 46 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

THE IN ITIA TES P L C NOTES TO THE F IN A N C IA L STA TEME N TS II Financial liabilitie s Initial re cogn ition and m e asure m e nt Subs e que nt me asure me nt All financial liabilities are measured subsequently at amortised cost using the effective interest method. Financial liabilities measured subsequently at amortised cost. Financial liabilities that are not: (i) contingent consideration of an acquirer in a business combination, (ii) held-for-trading, or Loans and borrowings This category generally applies to interest-bearing loans and borrowings. Fore ign e xchange gains and loss e s Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.The EIR amortisation is included as finance costs in the statement of profit or loss. For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end of each reporting period, the foreign exchange gains and losses are determined based on the amortised cost of the instruments. These foreign exchange gains and losses are recognised in profit or loss for financial liabilities that are not part of a designated hedging relationship. The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of the reporting period. (iii) designated as at FVTPL, are measured subsequently at amortised cost using the effective interest method. Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability. This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the (Expected Interest Rate) EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the effective interest (EIR) amortisation process. 47 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

THE INITIATES PLC NOTES TO THE F INANCIAL STATEMENTS D e re cognition of financial liabilitie s (1) the carrying amount of the liability before the modification; and Offs e tting of financial instruments lll) Share capital 4.3. Prope rty, plant and equipment i R e cognition and me asurement Land is stated in the statement of financial position at the revalued amount. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognised in profit or loss. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Cost includes expenditure that is directly attributable to the acquisition of the asset. Items of property, plant and equipment under construction are disclosed as capital work-in-progress. The cost of construction recognised includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset, and the net amount is restated to the revalued amount of the asset. All other property, plant and equipment acquired after the revaluation, are stated at cost less accumulated depreciation and accumulated impairment losses. Buildings, plant and machinery, and all other property, plant and equipment are stated in the statement of financial position at their revalued amount less accumulated depreciation and any impairment losses. The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired.The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss. When the Company exchanges with the existing lender one debt instrument into another one with the substantially different terms, such exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, the Company accounts for substantial modification of terms of an existing liability or part of it as an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective rate is at least 10 percent different from the discounted present value of the remaining cash flows of the original financial liability. If the modification is not substantial, the difference between: (2) the present value of the cashflows after modification should be recognised in profit or loss as the modification gain or loss within other gains and losses. Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities. O rdinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity, net of any tax effects. 48 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience

THE INITIATES PLC NOTES TO THE FINANCIAL STATEMENTS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ii Subsequent costs iii Depreciation Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate. Capital work-in-progress is not depreciated. The attributable cost of each asset is transferred to the relevant asset category immediately the asset is available for use and depreciated accordingly. The cost ofreplacing a part of an itemof property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount ofthe replaced part is derecognised. All other repairs and maintenance of property, plant and equipment are charged to statement of profit or loss during the financial year in which they are incurred. Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value. Assets are reviewed annually to ensure that impairment has not occurred. They are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts for those assets may not be recoverable. Impairment losses are measured as the difference between the carrying amount and the recoverable amount, which is the higher of the asset's fair value less costs to sell and its value in use, as determined by the amount of estimated risk adjusted future cash flows. Impairment losses are recognised in income statement in the period in which they are incurred. Borrowing costs directly related to the acquisition or construction of an asset are capitalised as part of the cost of the asset to the extent of its recoverable amount. As established by IAS 23 - Borrowing costs, the company has applied this method to all qualifying assets. Borrowing costs are capitalised when the cost of the acquisition of the assets and borrowing cost are incurred and the activities necessary to bring the assets to a condition for its use have been started. Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of an itemof property, plant and equipment which reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Capitalisation of borrowing cost is suspended during periods in which active development is interrupted. 49 2022 Annual Report & Accounts The Initiates Plc... Powered by Innovation and Consolidated experience