Presentation to Investors & Analysts Third Quarter 2019 1 - PowerPoint PPT Presentation

Presentation to Investors & Analysts Third Quarter 2019 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 2019, 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

AWARDS, CSR & OVERVIEW OPERATING GROUP FINANCIAL OUTLOOK SEGMENT REVIEW OTHER SOCIAL ENVIRONMENT OVERVIEW ENGAGEMENT 14 17 4 38 10 43

OVERVIEW

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

Our Investment Philosophy …guided by a sound investment philosophy Sound Corporate Governance Return on Investments Operational Efficiency Growth Capacity Long-term Socio-economic Shareholder Returns Impact www.transcorpnigeria.com 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 domestic upstream total power requirement in Nigeria, redefining hospitality standards in the continent Transcorp Power Limited remains a capacity while remaining truly African. leader in the Nigerian power sector. Owner/operator of OPL 281 oil block • Estimated Oil Reserve – 189.73mn • c.972MW installed capacity gas fired power plant • Gas – 377.48Bn Std Cubic Feet • Current available capacity of 678MW to increase rapidly • Transcorp Hilton Abuja: Nigeria’s foremost hotel and the • Exploration commences in 2020 • Medium term capacity target of 2500MW • leading business hotel in Africa - 670 rooms, 5  hotel 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 …as evidenced by our enviable milestones 2012: Transcorp Ughelli Power 2015: Merger of TUPL and UPP ▪ ▪ POWER 2004: Incorporation of ▪ as Transcorp Power Ltd emerges preferred bidder for Increase power generation ▪ Transcorp Ughelli Power Plc (UPP) through acquisition of additional power plants 2016: Commencement of full ▪ ▪ 2005: Acquisition of 2013: Successful takeover of UPP ▪ Upgrade Project for Transcorp Transcorp Hilton Abuja Look out for opportunistic ▪ Hilton Abuja ▪ 2013: Execution of management investments in renewable 2006: Listing on the ▪ agreement with Hilton for Transcorp energy and off-grid solutions Nigerian Stock 2017: Commission of GT15 a ▪ Hilton Ikoyi such as our recent Exchange 115MW Gas Turbine by partnership with Engie Transcorp Power 2014: Execution of Production ▪ ▪ 2010: Acquisition of Sharing Contract on OPL 281 HOSPITALITY: Transcorp Hotels Deepen Operational ▪ Calabar 2017: TPL surpassed BPE-set ▪ ▪ 2014: Execution of Management Efficiency minimum performance of Agreement for Hilton Port Harcourt Sweat existing assets ▪ 2011: Heirs Holdings ▪ 670MW by generating becomes core investor 701MW. 2014: Issuance of Transcorp Hotels ▪ Expand into new businesses ▪ IPO and locations 2018: Conclusion of ▪ 2014: NSE Awards Transcorp the OIL AND GAS: ▪ additional land acquisition for Most Compliant Firm in Nigeria Commence production of ▪ Transcorp Hilton Ikoyi oil and gas in OPL 281 2015: Issuance of Transcorp Hotels ▪ Acquire new oil & gas assets ▪ N20bn bond PHASE TWO PHASE ONE PHASE THREE 2004 - 2011 2012 - 2018 2019 - 2025 1 2 3 8 www.transcorpnigeria.com

Management Team …a team of experienced professionals SUBSIDIARY LEADERSHIP Kalyana Sundaram Valentine Ozigbo Napoleon Esemudje Helen Iwuchukwu Owen Omogiafo MD/CEO, Transcorp Director of Resources President/CEO Group Company MD/CEO, Transcorp Power Limited Secretary Hotels Plc Peters Ameh Adebayo Salako Chuma Mgbojikwe Christopher Ezeafulukwe Kevin Brett Head, Plant Technical Chinweugo Nwafor Chief Technical Mutiu Bakare GM, Transcorp Executive Director GM, Transcorp Audit and Support Group Head, Officer Group CFO Hotels Calabar Internal Audit Hilton Abuja www.transcorpnigeria.com 9

OPERATING ENVIRONMENT

Overview of the Global Economy Growth forecasts for major world economies looks bleak... 1.2% POSSIBLE UPSIDES • Central banks globally are either maintaining or reducing Interest rate to support growth in their respective economies. UK • China continues to invest more in other economies USA China U.A.E 2.3% POSSIBLE DOWNSIDES 6.5% Nigeria • Lingering trade tensions between the US and China Brazil • Continued volatility of the oil price including the recent 1.7% attack on a Saudi Oil facility. 2.3% Persisting currency pressures across emerging market • South-Africa 0.9% economies. 1.1% Legend: Upward GDP Growth Downward GDP Growth www.transcorpnigeria.com Stagnant GDP Growth 11 Source: International Monetary Fund, Trading Economics, Standard Chartered Global Research

Domestic Economy: Key Indicators …signaling a possible growth upside on the local scene GDP 2018 Large and Growing Market & US$ billions Workforce 201m 4 Nigeria Population 397 60.6% 3 201 million 4 Electrification rate South Africa 377 population Median Age of 17.9 as a % of 7th Largest country globally Egypt 249 Years 1 Population Algeria 188 17.9 Morocco $2,396 118 Median Age $397 billion GDP Years Angola 115 2018 GDP Per Capita Kenya 90 _ _ _ _ _ __ Investment Gateway to West Africa 107 th Country in Ethopia 84 23.1% terms of Highest Unemployment rate Tanzania 56 proportion of c.60% Of the West African market Ghana 52 Internet Users 1.98mn bpd Oil production in Q2 2019 Source: statisticstimes.com No.1 GDP in Africa 92.67% 2 (Aug 2019) Of ECOWAS manufacturing 50% Tele-density capacity www.transcorpnigeria.com 12 Source: 1 Worldometer/UN; 2 NCC; 3 IMF; 4 NPC