FACTS BEHIND RESTRUCTURING PRESENTED BY Olufunke Moore (Ag. - PowerPoint PPT Presentation

FACTS BEHIND RESTRUCTURING PRESENTED BY Olufunke Moore (Ag. Managing Director/CEO) Goldlink Insurance Plc www.goldlinkinsuranceplc.com

Disclaimer This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Goldlink Insurance Plc (the “Company”) shares or other securities. This presentation includes certain forward looking statements with respect to certain development projects, potential collaborative partnerships, result of operations, and certain plans and objectives of the Company including in particular and without limitation, the statements regarding potential sales revenues from business activities, both current and under development, possible launch dates for new projects, ability to successfully write new insurance policies, and any revenue and profit guidance. By their very nature forward looking statements involve risk and uncertainty which could cause the company’s actual result and developments to differ from those expressed or implied. Past performance is no guide to future performance and persons needing advice should consult an independent financial advisor. www.goldlinkinsuranceplc.com 2

OUR VISION “A first class insurance company driven by innovation and experience” www.goldlinkinsuranceplc.com

PRESENTATION OUTLINE  Corporate Profile  Our Journey So Far  Financial Performance  Our Focus  Response from Stockbrokers www.goldlinkinsuranceplc.com 4

CORPORATE PROFILE  Goldlink Insurance Plc (“ Goldlink ”) was incorporated in April 1992 as a Private Company and converted to a Public Company in January 2007. Goldlink was listed on the Exchange by Introduction in 2008.  Goldlink was licensed to operate as a full – fledged insurance company in September 1993.  The Principal activities of the company are: - i. General Insurance Business ii. Life Insurance Business.  The Company is licensed to underwrite all classes of Insurance. www.goldlinkinsuranceplc.com 5

CLASSIFICATION OF BUSINESS Life Life - 24% General - 76% General 1. Classification is based on gross premium written as at 31 December 2014 audited financial statements www.goldlinkinsuranceplc.com 6

 The Company’s current authorized share capital is N4.550 billion.  From its inception in 1993, Goldlink firmly established itself as a resilient company with potential for growth.  The company has sixteen (16) branches in addition to the head office. It is our vision to continue to spread to all areas of viable commercial activities in the country, while gradually moving out of areas with dwindling business opportunities. www.goldlinkinsuranceplc.com 7

THE BOARD  Mohammed Mustapha Bintube – Chairman  Mr. Olanrewaju Sulaimon  Mrs. T onbola Ashimi  Mr. Gbolahan Olutayo – Managing Director/CEO  Mr. Adeyinka Olutungase – Chief Finance Officer www.goldlinkinsuranceplc.com 8

TOP MANAGEMENT Mr Gbolahan Olutayo – Managing Director/CEO Mrs. Olufunke Moore – Executive Director Mr. Adeyinka Olutungase – Chief Finance Officer Mr. Roland Awoyinfa – Group Head, Technical Mr. Dapo Owoeye – Group Head, Marketing Mr. Kunle Ajayi – Group Head Research & Business Devt Mr. Kamoru Sule – Group Head, Life Mr. Dayo Coker – Chief Accountant Mr. Rasheed Ige - Chief Internal Auditor www.goldlinkinsuranceplc.com 9

OUR JOURNEY SO FAR www.goldlinkinsuranceplc.com

OUR JOURNEY NAICOM intervened in 2012, appointing an interim Management Board (IMB) which:  Prepared and had KPMG audited the financial statements for years ended 2011, 2012, 2013 and 2014.  Convened the 19 th Annual General Meeting to receive and approve these financial statements on 23 December 2015  Established that the company will need cash injection to meet up with the share capital requirements of the 2003 Insurance Act, as composite insurer. www.goldlinkinsuranceplc.com 11

OUR JOURNEY NAICOM, in February 2016, reconstituted the IMB, with the following mandates: To assume oversight responsibilities and perform normal duties of Board of Directors for sound 1. management and growth of the company. Ascertain the financial state of the Company. 2. Implement the AGM decisions on increase in authorized share capital and take steps to facilitate 3. the recapitalization of the company. Exercise all powers to allot relevant shares in connection with the increase in authorized share 4. capital resulting from (3) above. Ensure all necessary filings and statutory returns and other requirements of the law are complied 5. with in the course of recapitalization, cash injection and allotment of the shares resulting from (4) above. Restructure the Company, align its staffing requirements with the realities on ground, streamline 6. its expenditure pattern and take all other strategic actions to put the company on competitive edge and profitability. Carry out all other tasks that may be necessary to bring the company to sound management and 7. operational stability. www.goldlinkinsuranceplc.com 12

RESULTS OF THE INTERVENTION The current IMB was inaugurated on 25 th February 2016 and immediately with the management swung into action starting with the following areas: Reviewed the financial and operational status of the company and made a a. report to the Regulator. Reorganized the management with resultant return of vibrancy and b. efficiency in managing the Company. Took step to reinforce budgetary control as an effective tool for financial c. and expenditure management. Commenced the review of past financial and employment policy / practices. d. Commenced the process of sensitizing prospective investors, both existing e. shareholders and external investors to achieve the recapitalization mandate. A total of 2.5billion units of shares were discovered to be inappropriately f. issued. 1.35billion units were recovered via surrender and forfeiture. The recovered shares were returned to unissued share capital and available for reissue by the company. The balance of 1.2billion units are not available for immediate recovery. www.goldlinkinsuranceplc.com 13

FINANCIAL PERFORMANCE www.goldlinkinsuranceplc.com 14

FIVE YEAR FINANCIAL SUMMARY 2015 * 2014 2013 2012 2011 N’ Million N’ Million N’ Million N’ Million N’ Million Net Premium 1,800 3,341 3,372 3,299 2,448 Claims Paid 1,757 1,775 1,013 1,136 1,125 Profit before (1,021) (415) 180 (466) (984) tax Profit after (1,021) (529) 69 (509) (1,225) tax Shareholders’ (4,764) (3,902) (3,426) (2,938) (2,091) Funds * 9 months results are unaudited www.goldlinkinsuranceplc.com 15

PERFORMANCE TRENDS (2011 – 2015) 2015* 2014 2013 2012 2011 N ‘Million N ‘Million N ‘Million N ‘Million N ‘Million Gross Premium 2,065 3,113 4,352 5,404 3,937 Claims Paid 1,757 1,775 1,013 1,863 2,163 Investment 37 49 59 69 27 Income Profit before (1,021) (415) 180 (777) (2,045) tax Profit after tax (1,021) (529) 69 (824) (2,302) T otal Assets 2,352 2,148 2,609 3,535 3,801 T otal Equity & 2,352 2,148 2,609 3,525 3,801 Liability Shareholders (4,764) (3,902) (3,426) (2,938) (2,091) Funds * 9 months unaudited www.goldlinkinsuranceplc.com 16

OUR FOCUS www.goldlinkinsuranceplc.com

PLANS  Source and inject funds to recapitalize the company, through right issues and/or offer to other interested investor(s).  Reinvigorate the marketing workforce to reclaim lost market share, especially the Oil and Gas sector.  Continue to adhere to best standards of regulatory compliance and Corporate Governance.  Improve on the Company’s expenditure profile.  Returning the company to a solvent position for competitive businesses.  Increase the use of Information Technology for efficient business process and service delivery. www.goldlinkinsuranceplc.com 18

CASHFLOW FORECAST 2016 2017 2018 RECEIPTS N'million N'million N'million 7,500 10,000 BROKERS/DIRECT/CA SH (PREMIUM ) 5 ,2 80 160 214 COMMISSION CESSION 1 1 3 785 940 INV ESTMENT INCOME(CBN) 1 05 27 31 QUOTED EQUITY INCOME 560 640 SHORT TERM INCOME 1 4 4 NET OFFER PROCEEDS 8,000 TOTA L 13,642 9,032 11,825 PA YMENTS - 1,016 1,354 REINSURERS/COINSURERS 7 1 5 1,363 1,818 COMMISSION PA ID 9 6 0 1,367 1,636 CLA IMS PA ID 1 ,3 02 2,150 2,075 INV ESTMENTS IN FINA NCIA L INSTRUMENTS 7 ,85 0 400 INV ESTMENTS IN FIXED A SSETS 2 83 1,500 INV ESTMENT IN PROPERTY 878 1,171 INV ESTMENT IN INFORMA TION TECHNOLOGY 6 1 8 1,063 1,418 OPERA TING EXPENSES 7 4 9 140 105 TA XA TION 1 1 6 16 21 PREPA YMENT 1 6 75 100 NA ICOM INSURA NCE LEV Y 5 5 TOTA L 12,664 8,469 11,199 563 626 NET RECEIPTS/(PA YMENTS) 9 7 8 1,434 1,323 OPENING CA SH BA LA NCE 4 5 6 1,998 1,948 CLOSING CA SH BA LA NCE 1 ,4 3 4 www.goldlinkinsuranceplc.com 19

Strong Brand & Goodwill www.goldlinkinsuranceplc.com 20

THANK YOU www.goldlinkinsuranceplc.com

Q & A RESPONSE FROM STOCKBROKERS www.goldlinkinsuranceplc.com