Presentation to Investors & Analysts For the period ended June 30 th , 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 13 16 33 37 Group COVID-19 Operating Financial Segment Overview Outlook Response & Environment Performance Review Intervention www.transcorpnigeria.com 3
Overview 4
About Transcorp A diversified conglomerate… Listed Company with approximately 300,000 Shareholders with commanding presence in the Power, Oil & Gas and 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 www.transcorpnigeria.com 6
The Group at a Glance …in strategic sectors of the economy Through ownership of choice assets and With eyes set on generating 25% of provision of exceptional service, Transcorp We are on a mission to ramp up the total power requirement in Hotels Plc is redefining hospitality standards in domestic upstream capacity. Nigeria, Transcorp Power Limited the continent while remaining truly African. remains a leader in the Nigerian power sector. • c.972MW installed capacity gas fired power • Transcorp Hilton Abuja: Nigeria’s foremost • Owner/operator of OPL 281 oil block plant hotel and the leading business hotel in Africa - • Estimated Oil Reserve – 189.73mn Current available capacity of approximately 670 rooms, 5 hotel Gas – 377.48Bn Std Cubic Feet • • 500 MW expected to increase rapidly Transcorp Hotels Calabar – 132 rooms, 3 • hotel • Medium term capacity target of 2,500MW • Expansion through asset-light strategy Transcorp is committed to creating value and making socio-economic impact www.transcorpnigeria.com 7
Our Journey Our achievement milestones speak volumes PHASE ONE PHASE TWO PHASE THREE 2004 - 2011 2019 - 2025 2012 - 2018 POWER Deepen our power business through ▪ 2012: Transcorp Ughelli Power ▪ acquisition of additional power plants. emerges preferred bidder for Ughelli ▪ 2015: Merger of Transcorp Ughelli ▪ 2004: Incorporation of ▪ Emerged preferred bidder for AFAM Power Plc (UPP). Power Limited and UPP as Transcorp Transcorp. power plant. Power Ltd. Membership into the West African Power ▪ 2013: Successful takeover of UPP. ▪ 2005: Acquisition of Transcorp Pool (WAPP). ▪ 2013: Execution of management ▪ 2016: Commencement of full Upgrade ▪ Hilton Abuja. Explore opportunistic investments in ▪ agreement with Hilton for Transcorp Project for Transcorp Hilton Abuja. renewable energy and off-grid solutions. Hilton Ikoyi. 2006: Listing on the Nigerian ▪ 2017: Commission of GT15 a 115MW ▪ Stock Exchange. HOSPITALITY: 2014: Execution of Production Sharing ▪ Gas Turbine by Transcorp Power. Deepen operational efficiency. ▪ Contract on OPL 281. 2017: Decision to divest from Teragro ▪ ▪ 2006: Emerged winner of Sweat existing assets. ▪ 2014: Execution of Management ▪ Fruit juice concentrate plant. OPL281 Bid ▪ Completion of the over $100million Agreement for Transcorp Hilton Port upgrade of Transcorp Hilton Abuja Harcourt. 2018: Year-end closure with highest ▪ 2010: Acquisition of Transcorp Issuance of Certificate of Discharge by ▪ ▪ 2014: Issuance of Transcorp Hotels ▪ profits in two Group companies. Hotels Calabar. the National Council on Privatisation IPO. 2018: Conclusion of additional land ▪ Expand into new businesses and ▪ 2014: NSE Awards Transcorp the Most ▪ acquisition for Transcorp Hilton Ikoyi. ▪ 2011: Heirs Holdings becomes locations. Compliant Firm in Nigeria. 2018: TPL surpasses BPE-set minimum ▪ core investor. performance target for power OIL AND GAS: 2015: Issuance of Transcorp Hotels ▪ generation. Commence production of oil and gas in ▪ N20bn bond. OPL 281. ▪ Acquire new oil & gas assets. 8 8 www.transcorpnigeria.com
Management Team …a team of experienced professionals TRANSCORP HOTELS PLC GROUP LEADERSHIP TRANSCORP POWER LIMITED Mutiu Bakare Gabriel Nkanga Owen Omogiafo Christopher Ezeafulukwe Dupe Olusola Helen Iwuchukwu Group Chief Finance Director of MD/CEO MD/CEO ED/COO President/GCEO - Resources Officer Oluwasayo Akinwale Chike Anikwe Chinweugo Nwafor Okaima Ohizua Adebayo Salako Kevin Brett Chuma Mgbojikwe Group Head, Acting Group Group Head, ED/ COO Chief Technical GM, Transcorp GM, Transcorp Marketing & Corporate Hotels Calabar Company Secretary Internal Audit Officer Hilton Abuja Communications www.transcorpnigeria.com 9 9
Operating Environment 10
Global Economic Impact of COVID-19 World economy to slowdown in 2020 IMF Projected GDP Growth Global GDP Growth Rate 2019 2020F 2021F as at Q2 2020 World Output 2.9 -4.9 5.4 Advanced Economies 1.7 -8.0 4.8 United States 2.3 -8.0 4.5 Russia Euro Area 1.3 -10.2 6.0 Canada -8.5% -14.0%* Emerging Markets and 3.7 -3.0 5.9 UK Developing -21.7% Europe Economies USA -14.4% China -9.5% 3.2% China 6.1 1.0 8.2 Japan Nigeria 2.2 -5.4 2.6 -9.9% Nigeria South Africa 0.2 -8.0 3.5 -6.1% India Low-Income 5.2 -1.0 5.2 -8.0%* Brazil Developing Countries -10.0%* Australia COVID-19 Update as at 24 th of August 2020 -7.5%* South Infected 23.68 million Africa -8.0%* Deaths 814,029 Recovered 16.14 million Legend: Upward GDP Growth *Forecast Downward GDP Growth www.transcorpnigeria.com 11 Source: Trading Economics, Worldometer, IMF
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