Presentation to Investors & Analysts For the period ended March - PowerPoint PPT Presentation

Presentation to Investors & Analysts For the period ended March 31 st 2020 1

Disclaimer From time to time, Transnational Corporation of Nigeria Plc (“Transcorp”) and its subsidiaries (“the Group”) make written and/or oral forward- • looking statements in presentations (including this presentation) and other communication. In addition, representatives of the Group may make forward-looking statements orally to analysts, investors, the media and others. All such statements are intended to be forward looking statements. Forward looking statements include, but are not limited to, statements regarding the Group’s objectives and priorities for 2020, and beyond and strategies to achieve them, and the Group’s anticipated financial performance. Forward looking statements are typically identified by words such as “ will ” , “ should ” , “ believe ” , “ expect ” , “ anticipate ” , “ intend ” , “ estimate ” , “ may ” , “project” and “ could ” . • By their very nature, these statements require the Group to make assumptions and are subject to inherent risks and uncertainties, general and specific. In the light of uncertainties related to the financial, economic and regulatory environments, such risks and uncertainties – many of which are beyond the Group’s control and the effects of which are difficult to predict – may cause actual results to differ materially from the expectations expressed in the forward-looking statements. Risk factors that could cause such differences include, exchange rate, market exchange, and interest rate, operational, reputational, insurance, strategic, regulatory, legal, environmental, and other risks. All such factors should be considered carefully, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, when making decisions with respect to the Group and we caution readers not to place undue reliance on the Group’s forward- looking statements. Any forward looking statements contained in this presentation represent the views of management only as at the date hereof and are • presented for the purpose of assisting the Group’s investors and analysts in understanding the Group’s financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. The Group does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation. • The information used in this presentation were obtained from several sources that the Group believes are reliable. Whilst Transcorp has taken all reasonable care to ensure the accuracy of the information herein, neither Transcorp nor any of its subsidiaries/affiliates makes representation or warranty, express or implied, as to the accuracy and correctness of the information. Thus, users are hereby advised to exercise caution in attempting to place reliance on these information and carry out further research or seek the opinion of professional advisers before reaching conclusions regarding their investment decisions. www.transcorpnigeria.com 2

Presentation Outline 04 10 15 18 37 41 Group CSR Operating Financial Segment Overview Outlook & Environment Performance Review Awards www.transcorpnigeria.com 3

Overview 4

About Transcorp A diversified conglomerate… Listed Company with approximately 300,000 Shareholders with commanding presence in the Power, Energy & Hospitality sectors. With an Aggressive Growth Agenda With a Purpose of Improving Lives, Transforming Nigeria Deeply rooted values are the 3Es of Execution, Enterprise and Excellence www.transcorpnigeria.com 5

Our Investment Philosophy Guided by a sound investment philosophy Long-term Shareholder Returns Corporate Operational Governance Efficiency Return on Growth Capacity Investment Socio-economic Impact 6

The Group at a Glance …in strategic sectors of the economy Through ownership of choice assets and provision of With eyes set on generating 25% of the exceptional service, Transcorp Hotels Plc is We are on a mission to ramp up total power requirement in Nigeria, redefining hospitality standards in the continent Transcorp Power Limited remains a domestic upstream capacity. while remaining truly African. leader in the Nigerian power sector. • c.972MW installed capacity gas fired power plant Owner/operator of OPL 281 oil block • • Current available capacity of approximately 600MW to Estimated Oil Reserve – 189.73mn Transcorp Hilton Abuja: Nigeria’s foremost hotel and the • • increase rapidly Gas – 377.48Bn Std Cubic Feet leading business hotel in Africa - 670 rooms, 5  hotel • • Medium term capacity target of 2,500MW Transcorp Hotels Calabar – 132 rooms, 3  hotel • Medium Term: Expansion to Lagos • Transcorp is committed to creating value and making socio-economic impact www.transcorpnigeria.com 7

Our Journey Our achievement milestones speak volume PHASE ONE PHASE THREE PHASE TWO 2004 - 2011 2012 - 2018 2019 - 2025 POWER Deepen our power business through   2012: Transcorp Ughelli Power acquisition of additional power plants. 2015: Merger of TUPL and UPP as  emerges preferred bidder for Ughelli 2004: Incorporation of  Emerged preferred bidder for AFAM.  Transcorp Power Ltd. Power Plc (UPP). Transcorp.  Membership into the West African Power Pool (WAPP).  2016: Commencement of full 2013: Successful takeover of UPP.  Explore opportunistic investments in 2005: Acquisition of   Upgrade Project for Transcorp Hilton  2013: Execution of management Transcorp Hilton Abuja. renewable energy and off-grid solutions. Abuja. agreement with Hilton for Transcorp Hilton Ikoyi. 2006: Listing on the Nigerian HOSPITALITY:  2017: Commission of GT15 a 115MW  Deepen operational efficiency. Stock Exchange.  Gas Turbine by Transcorp Power. 2014: Execution of Production  Sweat existing assets.   2017: Decision to divest from Teragro Sharing Contract on OPL 281. Completion of the over $100million  2010: Acquisition of  Fruit juice concentrate plant. 2014: Execution of Management  Transcorp Hotels Calabar. upgrade of Transcorp Hilton Abuja Agreement for Hilton Port Harcourt.  Issuance of Certificate of Discharge by 2018: Year-end closure with highest  2014: Issuance of Transcorp Hotels  the National Council on Privatisation 2011: Heirs Holdings  profits in two Group companies. IPO. Expand into new businesses and becomes core investor.  2018: Conclusion of additional land   2014: NSE Awards Transcorp the locations. acquisition for Transcorp Hilton Ikoyi. Most Compliant Firm in Nigeria. 2018: TPL surpasses BPE-set minimum  OIL AND GAS: performance target for power 2015: Issuance of Transcorp Hotels   Commence production of oil and gas in generation. N20bn bond. OPL 281. Acquire new oil & gas assets.  8 www.transcorpnigeria.com

Management Team …a team of experienced professionals TRANSCORP HOTELS PLC TRANSCORP POWER LIMITED GROUP LEADERSHIP Dupe Olusola Helen Iwuchukwu Christopher Ezeafulukwe Owen Omogiafo Mutiu Bakare MD/CEO ED/COO MD/CEO President/GCEO Group Chief Finance Officer Kevin Brett Chuma Mgbojikwe Chinweugo Nwafor Okaima Ohizua Adebayo Salako Oluwasayo Akinwale Chike Anikwe GM, Transcorp Group Head, GM, Transcorp Group Head, ED/ COO Chief Technical Acting Group Hotels Calabar Internal Audit Hilton Abuja Marketing & Corporate Officer Company Secretary Communications www.transcorpnigeria.com 9

Operating Environment 10

Global Economic Impact of COVID-19 World economy to slowdown in 2020 World GDP growth is projected to slowdown by 3% in 2020. Global Impact • Over 5 million people infected with more than 300,000 deaths worldwide as at May 24 th , 2020. Nearly 3.5 billion people around the world are now • livingunder “Lockdown” . Russia • Over 209 destinations worldwide have adopted Canada COVID-19 related travel restrictions. 5.5% 6.2% UK About 90 destinations have implemented complete or • 6.5% Europe partial closure of borders to tourists. 7.5% USA China Global economy is predicted to lose over $2.7 trillion 5.9% • 1.9% while global output is projected to shrink by 3% in 2020. Central Asia & • IATA has estimated that the Tourism and Travel Nigeria Middle East industry could lose up to $252 billion in passenger 3.4% 5.8% revenues from Airline travels. India 1.2% Brazil • About 47 million people are projected to lose their 5.3% jobs globally. Significant drop in global commodity prices with the • oil price crashing from a peak of c. $60pb in Jan. 2020 South Africa to below $30pb in Q1 2020. Prices for US WTI crude 5.8% falling below $0pb into the negative territory on April 20 th 2020. Legend: Upward GDP Growth Downward GDP Growth www.transcorpnigeria.com 11 Source: IMF World Economic Outlook – April 2020, WHO Situation Report -113