IKEJA HOTEL PLC (RC 10845)

IKEJA HOTEL PLC (RC 10845) Unaudited Financial Statements For The Quarter Ended 31 March, 2017

IKEJA HOTEL PLC Contents Page The Company 1 Statement of Financial Position 2 Satement of Comprehensive Income 3 Statement of Changes in Equity 4 Statement of Cash Flows 5 Notes to Financial Statement 6 Income Statement Forecast 12 Operating Summary 13

IKEJA HOTEL PLC The Group The group comprise Ikeja Hotel Plc and its subsidiary Hans-Gremlin Limited, a special purpose vehicle which holds 51% of the ordinary shares in Capital Hotels Plc. The Company Ikeja Hotel Plc., formerly Properties Development Limited, was incorporated on 18 November, 1972. It owns the Sheraton Lagos Hotel, a core investor in Hans Gremlin Nigeria Limited and a shareholder in the Tourist Company of Nigeria Plc. (Owners of Federal Palace Hotel & Casino, Lagos). The registered office of the company is located at 84 Opebi Road, Ikeja, Lagos. The hotel is managed and operated by Starwood Eame License and Services Company BVBA (now Marriot) Principal activities The principal activities of the group are the operation of hotels and restaurants, apartment letting, recreational facilities, night clubs and business centre, advisory and consultancy services to undertakes advisory management on all type of businesses. Accounting Policies The same accounting policies and methods of computation are followed in the interim financial statements for the quarter ended 31 March, 2017 as were followed in the most recent financial statements. Statement of Compliance The financial statements have been prepared in accordance with Interim Financial Reporting (IAS 34) under the International Financial Reporting Standards. Going Concern Status The consolidated financial statements have been prepared on a going concern basis, which assumes that the entity will be able to meet its financial obligations as at when they fall due. There are no significant financial obligations that will impact on the entity's resources which will affect the going concern of the entity. Management is satisfied that the entity has adequate resources to continue in operational existence for the foreseable future. For this reason, the going concern basis has been adopted in preparing the consolidated financial statements. 1

Statement of Financial Position As at 31 March, 2017 The Group The Company Notes Non-Current Assets Property, plant and equipment 1 6,421,148 6,562,469 4,078,780 4,101,119 Capital Work in Progress 2 4,451,730 4,268,744 3,927,927 3,744,941 Intangible Asset 3 30,697 32,767 11,702 12,208 Investment in Subsidiaries 27 - - 4,440,919 4,440,919 Investments in Joint Venture 28 798,722 798,722 798,722 798,722 Loans and Receivables 13 7,061,733 6,950,683 6,061,732 5,950,682 Due from Related Party 14 329,191 328,624 501,915 501,348 Total Non-Current Assets 19,093,221 18,942,010 19,821,698 19,549,940 Current Assets Inventories 12 569,673 579,880 284,089 291,132 Trade and Other Receivables 10 1,388,578 1,221,820 620,161 388,959 Other Assets 11 1,062,299 1,008,025 970,960 894,541 Cash and Cash Equivalents 15 4,611,742 3,520,114 546,107 635,418 Total Current Assets 7,632,292 6,329,840 2,421,317 2,210,051 Total Assets 26,725,513 25,271,850 22,243,015 21,759,990 Equity and Reserves Share Capital 24 1,039,398 1,039,398 1,039,398 1,039,398 Share Premium 25 1,381,072 1,381,072 1,381,072 1,381,072 Retained Earnings 26 4,325,472 4,285,004 5,165,495 5,152,827 Equity attributable to equity holders of Parent 6,745,943 6,705,475 7,585,965 7,573,297 Non-Controlling interest 26.1 2,354,654 2,275,200 - - 9,100,596 8,980,674 7,585,965 7,573,297 Liabilities Non-Current Liabilities Due to Related Parties 20 5,167,315 5,016,810 6,804,700 6,694,896 Employee Benefits 23 2,224,892 2,445,299 1,517,545 1,414,572 Deferred Tax 22 993,897 676,248 295,835 295,835 Non-Total Current Liabilities 8,386,105 8,138,357 8,618,080 8,405,303 Current Liabilities Trade and Other Payables 18 3,288,559 2,477,201 538,622 556,772 Deferred Income 17 4,756,873 4,626,811 4,691,920 4,580,870 Deposit for Shares 19 93,600 93,600 93,600 93,600 Dividend Payable 21 43,437 43,437 16,691 16,691 Bank Overdraft 16 515,950 351,269 515,950 351,269 Current Tax Payable 22 540,394 560,501 182,188 182,188 Total Current Liabilities 9,238,812 8,152,819 6,038,970 5,781,390 Total Liabilities 17,624,917 16,291,176 14,657,050 14,186,693 Total Equity and Liabilities 26,725,513 25,271,850 22,243,015 21,759,990 These financial statements were signed on behalf of the board of directors on 21 August 2017 by: Mr. Theo Eniola Netufo Chief Operating Officer FRC/2013/ICAN/00000004775 Mr. Olayiwola J. Osituwo Compliance Officer FRC/2013/ICAN/00000004776 2

Statement of Comprehensive Income For The Period Ended 31 March, 2017 The Group The Company Note 31-Mar-17 31-Mar-16 # 31-Mar-17 31-Mar-16 Revenue 4 2,788,850 2,412,138 1,519,846 1,204,929 Cost of Sales 5 (1,881,864) (1,467,407) (993,643) (893,911) Gross Profit 906,987 944,731 526,203 311,018 Other Income 6 15,337 77,080 13,618 76,025 Sales and Distribution Expenses 8 (119,010) (125,731) (51,425) (66,838) Administrative and General Expenses 7 (441,781) (399,544) (316,277) (276,715) Operating Profit 361,532 496,536 172,119 43,490 Finance costs 9 (181,059) (151,859) (181,059) (151,859) Share of loss in investment accounted for using equity - - - - Profit/(Loss) before Taxation 180,473 344,677 (8,940) (108,369) Current Tax Expense 22 (60,551) (144,975) - - Profit/(Loss) for the for the period 119,922 199,702 (8,940) (108,369) Profit/(Loss) attributable to: Equity holders of the parent 40,468 9,468 - - Non-controlling interest 79,454 190,234 - - 119,922 199,702 (8,940) (108,369) Other Comprehensive Income/(Loss) for the Period - - - - Total Comprehensive Income/(Loss) for the Period 119,922 199,702 (8,940) (108,369) Eanings per share (kobo) 6 10 (0.43) (5.21) 3

Ikeja Hotel Plc Statement of Changes in Equity as at 31 March, 2017 The Group The Company Issued Share Retained Noncontrolling Total Issued Share Retained Attributable to the Equity Holders of the Company Capital Premium Earnings interest equity Capital Premium Earnings Total =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 Balance as at 31 December 2016 1,039,398 1,381,072 4,285,004 2,275,200 8,980,674 1,039,398 1,381,072 5,174,434 7,594,904 Changes in Equity for the Period Profit for the period 40,468 79,454 119,922 - - (8,940) (8,940) Total Comprehensive Income for the Period - - (8,940) (8,940) At 31 March, 2017 1,039,398 1,381,072 4,325,472 2,354,654 9,100,596 1,039,398 1,381,072 5,165,495 7,585,965 At 31 December, 2015 1,039,398 1,381,072 2,096,037 1,915,096 6,431,603 1,039,398 1,381,072 5,218,058 7,638,529 Changes in Equity for the period Changes in Equity for the period Profit for the period 9,468 190,234 199,702 - - (108,369) (108,369) Total Comprehensive Income for the Period - - (108,369) (108,369) At 31 March, 2016 1,039,398 1,381,072 2,105,505 2,105,330 6,631,305 1,039,398 1,381,072 5,109,689 7,530,159 4

Condensed Statement of Cash Flows For the Period Ended 31 March, 2017 The Group The Company Notes 31-Mar-17 31-Mar-16 31-Mar-17 31-Mar-16 Profit/(Loss) for the Period 119,922 199,702 (8,940) (108,369) Adjustment for: Depreciation of PPE 1 199,953 215,692 108,224 152,020 Amortisation of Intangible Asset 3 506 506 506 733 Finance Costs 9 181,059 151,859 181,059 151,859 Post Employment Benefits 7 37,606 102,973 102,973 - Income tax expense 22 60,551 599,597 670,733 383,822 196,243 Changes in: Inventories 12 10,208 15,368 7,043 15,368 Trade and Other Receivables 10 (166,758) 167,910 (231,202) 167,910 Other Assets 11 (54,274) (255,393) (76,419) (255,393) Loans and Receivables 13 (111,050) (45,675) (111,050) (45,675) Due from Related Parties 14 (567) 49,715 (567) 49,715 Trade and Other Payables 18 811,358 826,468 (18,150) 826,468 Deferred Income 17 130,062 179,070 111,050 179,070 Due to Related Parties 20 150,505 (826,468) 109,804 (826,468) Cash generated from Operating Activities 1,369,080 781,729 174,331 307,239 Income tax paid 22 (39,973) - - (40,000) Net Cash from Operating Activities 1,329,107 781,729 174,331 267,239 Cash Flows from Investing Activities Purchase of PPE 1 (134,638) (85,885) (85,885) - Additions/Utilization of Capital Work in Progress 2 (182,986) (182,986) (182,986) (155,922) Net Cash Flows used in Investing Activities (317,624) (268,871) (268,871) (155,922) Cash Flows from Financing Activities Finance Costs 9 (181,059) (151,859) (181,059) (151,859) Net Cash Flows used in Financing Activities (181,059) (151,859) (181,059) (151,859) Net Increase in Cash and Cash Equivalent 830,424 360,999 (275,598) (40,542) Cash and Cash Equivalents at the beginning of the year 3,520,114 558,008 284,149 558,008 Cash and Cash Equivalent at the end of the period 4,350,538 919,007 8,550 517,466 5

SCHEDULE OF PROPERTY PLANT AND EQUIPMENT For the Quarter Ended 31 March, 2017 The Group Hotel Equipment Office Equipment Computer Equipment Motor Vehicles Total 1 Cost/Valuation Land Buildings At 1st January 3,440,742 1,590,382 4,438,427 3,409,614 189,931 485,228 13,554,324 Addition - 21,617 99,349 9,851 3,822-134,638 Adjustment - 483 3,000 (19,843) 404 (15,955) At 31 March, 2017 3,440,742 1,612,483 4,540,776 3,399,621 193,752 485,633 13,673,007 Depreciation and impairment At 1st January 729,647 3,137,552 2,502,938 170,778 450,939 6,991,855 Adjustment 4,706 (15) 50,764 5,426 60,881 Depreciation charge during the year - 12,765 123,200 53,051 5,416 4,691 199,124 At 31 March, 2017-747,119 3,260,737 2,606,753 176,194 461,057 7,251,859 Carrying Amount At 31 March, 2017 3,440,742 865,364 1,280,039 792,869 17,558 24,576 6,421,148 At 31 December, 2016 3,440,742 860,735 1,300,875 906,676 19,153 34,289 6,562,469 The Company Hotel Equipment Office Equipment Computer Equipment Motor Vehicles Total 1 Cost/Valuation Land Buildings At 1st January 3,084,350 745,849 2,252,505 73,049 189,931 249,214 6,594,897 Addition - 7,522 74,384 158 3,822-85,885 At 31 March, 2017 3,084,350 753,371 2,326,889 73,206 193,752 249,214 6,680,783 Depreciation and impairment At 1st January - 460,275 1,566,330 57,509 170,778 238,887 2,493,779 Depreciation charge during the year - 7,180 93,149 1,200 5,416 1,279 108,224 At 31 March, 2017-467,456 1,659,479 58,708 176,194 240,165 2,602,003 Carrying Amount At 31 March, 2017 3,084,350 285,915 667,410 14,498 17,558 9,049 4,078,780 At 31 December, 2016 3,084,350 285,574 686,175 15,540 19,153 10,327 4,101,119 6

NOTES TO THE ACCOUNTS The Group The Company Note Capital Work in Progress 2 At 1 January 4,268,744 1,181,472 3,744,941 657,669 Additions in the period 182,986 3,087,272 182,986 3,087,272 Total 4,451,730 4,268,744 3,927,927 3,744,941 This represents on going renovation works at the hotel 3 Intangible Asset 3.1 Computer Software Cost/Valuation At 1 January 46,080 33,267 20,236 20,236 Additions for the year - 12,813 - - Total 46,080 46,080 20,236 20,236 3.2 Amortization At 1 January 13,312 9,866 8,028 6,004 Adjustment 735 - Charge for the period 1,335 3,446 506 2,024 At 31 March, 2017 15,383 13,312 8,534 8,028 3.3 Carrying Value 30,697 32,767 11,702 12,208 31-Mar-17 31-Mar-16 31-Mar-17 31-Mar-16 4 Revenue Rooms 2,241,219 1,951,221 972,215 744,012 Food & Beverage 411,892 349,222 411,892 349,222 Minor Operating Departments 16,023 12,669 16,023 12,669 Miscellaneous Income 119,715 99,027 119,715 99,027 Total 2,788,850 2,412,138 1,519,846 1,204,929 31-Mar-17 31-Mar-16 31-Mar-17 31-Mar-16 5 Cost of Sales Rooms 1,108,527 747,104 220,306 173,608 Food & Beverage 337,058 264,664 337,058 264,664 Minor Operating Departments 9,909 40,564 9,909 40,564 Cost of Sales - Head Office 1,736 3,127 1,736 3,127 Administrative & General 200,079 162,734 200,079 162,734 Info & Telecom System 37,903 30,216 37,903 30,216 Property Operations & Maintenance 73,083 68,770 73,083 68,770 Rental Income Expenses - 72,396-72,396 Utilities 113,567 77,834 113,567 77,834 Total 1,881,864 1,467,407 993,643 893,911 31-Mar-17 31-Mar-16 31-Mar-17 31-Mar-16 6 Other Income Sales of Scrap - 456-456 Exchange Gain on Translation of Currency 7,486 4,328 7,486 3,274 Others 7,851 72,296 6,132 72,296 15,337 77,080 13,618 76,025 7

31-Mar-17 31-Mar-16 31-Mar-17 31-Mar-16 7 Administrative Expenses 441,781 399,544 316,277 276,715 31-Mar-17 31-Mar-16 31-Mar-17 31-Mar-16 8 Sales & Marketing Expenses 119,010 125,731 51,425 66,838 31-Mar-17 31-Mar-16 31-Mar-17 31-Mar-16 9 Finance Income and Finance Cost Interest Expense 181,059 151,859 181,059 151,859 Net Finance Cost 181,059 151,859 181,059 151,859 Interest expense represents charges paid and/or payable on loans. 10 Trade and Other Receivables 1,511,565 1,269,469 676,988 436,607 Allowances for Impairment Losses (223,669) (68,984) (76,968) (68,984) Net Trade Receivables 1,287,897 1,200,485 600,020 367,624 Other Receivables 100,681 21,335 20,141 21,335 1,388,578 1,221,820 620,161 388,959 11 Other Assets Prepayments 317,336 210,788 225,997 97,304 Withholding tax receivables 687,540 687,540 687,540 687,540 Advances to Suppliers 46,473 108,973 46,473 108,973 Advances to Employees 10,950 725 10,950 725 Total 1,062,299 1,008,025 970,960 894,541 12 Inventories Food & Beverage 123,866 122,456 54,024 61,377 Maintenance Supplies 89,021 180,774 89,021 86,122 Operating Supplies 219,908 113,821 114,516 108,922 General Stores 136,877 162,829 26,528 34,711 Total 569,673 579,880 284,089 291,132 13 Loans and Receivables At 1 January 6,950,683 4,653,928 5,950,682 3,653,928 Interest Capitalised 111,050 283,366 111,050 283,366 Exchange Revaluation - 2,013,389-2,013,389 7,061,733 6,950,683 6,061,732 5,950,682 Loans and receivable relate to receivable from The Tourist Company of Nig. Plc 14 Due from Related Party Federal Palace/Sun 17,337 16,770 17,337 16,770 Hans-Gremlin (Nigera) Ltd. - - 484,578 484,578 Ikeja Hotel Plc - - - - Others 311,854 311,854 - - Total 329,191 328,624 501,915 501,348 The carrying amount of due from related party relate to their fair value 15 Cash & Cash Equivalents Cash in Hand 5,016 4,996 933 933 Cash at Bank 1,054,698 887,177 545,175 634,485 1,059,714 892,173 546,107 635,418 Provision for Doubtful Balance - - - - 1,059,714 892,173 546,107 635,418 Time Deposits 3,552,028 2,627,941 - - As per Statement of Financial position 4,611,742 3,520,114 546,107 635,418 8

16 Bank Overdraft 515,950 351,269 515,950 351,269 17 Deferred Income 4,756,873 4,626,811 4,691,920 4,580,870 18 Trade and Other Payables Trade Payables 289,499 370,835 49,576 121,958 Accrued Expenses 1,864,296 1,808,148 214,418 211,828 Due to Starwood Eame License and Service Company 23,908 23,908 23,908 23,908 VAT Payables 20,742 16,348 20,742 16,348 Advance Deposit 4,821 774 4,821 774 Service Charge Distribution 41,598 37,685 41,598 37,685 Other Credit Balances 1,043,695 219,503 183,559 144,271 Total 3,288,559 2,477,201 538,622 556,772 19 Deposit for Shares 93,600 93,600 93,600 93,600 20 Due to Related Parties Capital Hotel Plc - - 1,079,922 1,114,292 IHL Services limited - - 557,462 563,794 Alurum investment Ltd/Omamo Trust Limited 2,545,947 2,471,793 2,545,947 2,471,793 Minabo Limited 1,487,441 1,444,117 1,487,441 1,444,117 AVI Services/G. M. Ibru 1,133,927 1,100,900 1,133,927 1,100,900 5,167,315 5,016,810 6,804,700 6,694,896 At 1, January 43,437 43,437 16,691 16,691 21 Dividend 43,437 43,437 16,691 16,691 22 Taxation 22.1 Current Tax Payable As at January 560,501 984,724 182,188 647,095 Provision during the period 19,867 229,893 - - Payment during the period (39,973) (654,116) - (464,907) At 31 March, 2017 540,394 560,501 182,188 182,188 The charge for taxation has been computed in accordance with the provisions of the companies income tax Act CAP C21,LFN 2004 and the Education Tax, CAP E4, LFN 2004 as amended 22.2 Deferred Taxation At January 676,248 676,248 295,835 295,835 Write back/charge in the period 317,649 - - - At 31 March, 2017 993,897 676,248 295,835 295,835 22.3 Current Tax Charges Income Tax 56,767 135,914 - - Education Tax 3,784 9,061 - - 60,551 144,975 - - Deferred Taxation - - - - Income Statement 60,551 144,975 - - 9

23 Employee Benefits At 1, January - - - - Provision during the period - - - - Payment during the period - - - - At 31 December, 2015 - - - - Defined Benefits N'000 N'000 At 1, January 2,445,299 3,050,524 1,414,572 1,694,643 Payment in the period (362,388) (605,465) - (264,847) Provision 141,982 240 102,973 - At 31 March, 2017 2,224,892 2,445,299 1,517,545 1,414,572 24 Share Capital 24.1 Authorised 4,000,000,000 Ordinary shares of 50 kobo each 2,000,000 2,000,000 2,000,000 2,000,000 24.2 Issued and fully paid At 1 January 1,039,398 1,039,398 1,039,398 1,039,398 At 31 March, 2017 1,039,398 1,039,398 1,039,398 1,039,398 Number: 2,078,796,396 ordinary shares of 50 kobo each 25 Share Premium Reserve At 1 January 1,381,072 1,381,072 1,381,072 1,381,072 At 31 March, 2017 1,381,072 1,381,072 1,381,072 1,381,072 26 Retained Earnings At 1 January Transfer from profit & loss account 4,285,004 40,468 4,275,536 9,468 5,174,434 (8,940) 5,218,058 (65,231) Other Comprehensive Income - - At 31 March, 2017 4,325,472 4,285,004 5,165,495 5,152,827 26.1 Non-controlling interest At 1 January 2,275,200 1,973,754 - - Share of profit 79,454 301,445 - - Other Comprehensive Income - - - - At 31 March, 2017 2,354,654 2,275,200 - - 10

27 Investment in Subsidiary Hans Gremin Nigeria Limited - - 4,440,919 4,440,919 The Ikeja Hotel Plc holds 75% of the issued share of Hans Gremin Nigeria Limited a special purpose vehicle used in acquiring 51% of the issued share capital of Capital Hotels Plc. 28 Investment Accounted for the Equity Method At 1 January 798,722 798,722 798,722 798,722 At 31 March, 2017 798,722 798,722 798,722 798,722 Investment relates to 273,529,085 units of stock in The Tourist Company of Nigeria Plc. 11

Statement of Comprehensive Income Forecast For the Period Ended 30 June, 2017 30.6.17 =N='000 Turnover 4,601,603 Cost of Sales (2,803,977) Gross Operating Profit 1,797,626 Operating Expenses (1,037,464) Result from Operating Activities 760,162 Net finance costs (271,588) Profit/(Loss) before Taxation 488,574 Current Tax Expense (156,344) Profit for the period 332,230

UNAUDITED RESULT FOR THE QUARTER ENDED 31 MARCH, 2017 31.3.17 31.3.16 % =N='000 =N='000 Change TURNOVER 2,788,850 2,412,138 15.62 OPERATING PROFIT 361,532 496,536 (27.19) FINANCE CHARGES (181,059) (151,859) (19.23) PROFIT/(LOSS) BEFORE TAX 180,473 344,677 47.64 TAXATION (60,551) (144,975) 58.23 PROFIT/(LOSS) AFTER TAX 119,922 199,702 39.95