Presentation to Investors

Presentation to Investors Improving Lives, Transforming Nigeria THIRD QUARTER, 2018 RC 611238

Disclaimer From time to time, Transnational Corporation of Nigeria Plc ( Transcorp ) and its subsidiaries ( the Group ) make written and/or oral forward-looking statements, including in this presentation and in other communications. 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 2018, 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 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. Especially in light of the uncertainty 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 of 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 the presentation is obtained from several sources the Group believes are reliable. Whilst Transcorp has taken all reasonable care to ensure the accuracy of the information herein, neither Transcorp nor 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 rely on these information and carry out further research before reaching conclusions regarding their investment decisions. 1

3 5 8 10 22 24 25 OVERVIEW OPERATING KEY BUSINESS FINANCIAL REVIEW OUTLOOK QUESTIONS ENVIRONMENT DRIVERS & ANSWERS APPENDIX

OVERVIEW

Overview of the Company Hotels 83% ownership Transcorp Hilton Abuja - No. 1 hotel asset in Nigeria - 670 rooms, 5 hotel Transcorp Hotels Calabar 132 room, 3 hotel Hilton Ikoyi (320 room, 5 )& Hilton PH (250 room, 5 ) under development Diversified Conglomerate with a growth agenda Power 50.01 % ownership c.972mw gas fired power plant Present available capacity of 644MW Medium term capacity target of 2500MW OPL281 100 % ownership Owner/operator of OPL 281 oil block Reserve estimates Oil - 189.73Mn stock tank barrel Gas 377.48Bn std cubic feet Expected production in 2019/20 4

OPERATING ENVIRONMENT

Local Economy Review Trend Quarterly GDP Growth Rate Trend 3.00% 2.00% 1.00% 0.00% -1.00% -2.00% 0.72% 1.17% 2.11% 1.95% 1.5% -0.91% Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Avg. Monthly External Reserves and Brent Crude Prices 100 50 0 Sep '17 Oct '17 Nov '17 Dec '17 Jan '18 Feb '18 Mar '18 April '18 Average Monthly External Foreign Reserves May June July '18 '18 '18 Aug '18 Sep '18 90 40-10 Brent Crude Price Gross Domestic Product The nation s economy expanded by 1.5% year on year in Q2 2018, easing from 1.9% growth in the previous period as the oil sector slowed and the nonoil sector gained. On a quarterly basis, the economy expanded by 2.9% after declining to 13.4% in the previous quarter. External Reserves The foreign exchange reserve account decreased to $44.31bn in Q3, compared to $47.6bn in Q2. Crude oil price averaged US$73/barrel in Q3 2018, moving above US$80/barrel in September, thus hitting a 4-year high. ource: National Bureau of Statistics, Central Bank of Nigeria and US Energy Information Administration 6

Local Economy Review Trend Inflation Rate Trend Sep '18 July '18 May '18 Mar '18 Jan '18 Nov '17 Sep '17 400 350 300 250 11.28 11.23 11.14 11.23 11.61 12.48 13.34 14.33 15.13 15.37 15.9 15.91 15.98 0 2 4 6 8 10 12 14 16 18 USD-NGN Exchange Rate Trend (N) Inflation Rate Inflation continues to decline reaching 11.28% YOY in Q3 2018. Food Inflation rose to 13.16% in August 2018 compared to 12.98 % in Q2 2018. Exchange Rate The I&E window established by CBN continues to provide liquidity and exchange rate convergence with parallel market. The CBN has begun sale of Chinese yuan to local traders and businesses. This is expected to strengthen trade activities with China and ease the long-running pressure on the naira currency. ource: National Bureau of Statistics, Central Bank CBN of Nigeria and BDC US Energy Information Administration 7

KEY BUSINESS DRIVERS

Key Trends Driving Our Business CBN policy initiatives such as the I&E window has helped liquidity of FX Improved access to FX for debt service and rehabilitation of turbines No substantial FX loss anticipated by year end based on CBN policy direction Sustained occupancy rates due to completion of more floors Stabilising foreign exchange regime Improved gas supply driving generation NBET N701bn PAP Focus on Hospitality Improved gas supply, driven by a) tactical engagement of suppliers b) infrastructural improvements by suppliers and c) improved payments to suppliers via PAP, led to generation increase The Payment Assurance Plan (PAP) window continues. TPL was paid up to 80% of 2018 invoices as guaranteed under the PAP. This is inclusive of 90% of gas invoice paid directly to suppliers Outlook is to fast track payment to current month. 9

FINANCIAL REVIEW

Result Snapshot A solid performance underpinned by sustained momentum in the growth of our businesses Group Q3 2018 (YTD) Q3 2017 (YTD) Change(%) Revenue 79.86 56.76 41% Gross Profit 36.96 25.62 44% INCOME STATEMENT (N billion) Other income 0.54 0.58-7% Operating Profit 25.93 16.81 54% Profit Before Tax 17.71 9.04 95% Profit After Tax 15.96 8.19 95% Total Comprehensive Income 15.05 10.18 48% Group Q3 2018 (YTD) Q3 2017 (FY) Change (%) BALANCE SHEET (N billion) Total Assets 298.61 285.52 5% Total Equity 109.94 95.71 15% Total Liabilities 188.67 189.81-1% 11

Group - Income Statement Q3 2018 (YTD) Q3 2017 (YTD) Variation N mn N mn % Revenue 79,861 56,757 41% Cost of Sales (42,901) (31,135) -38% Gross profit 36,960 25,622 44% Administrative expenses (11,573) (9,395) -23% Other income/expenses 542 583-7% Operating profit 25,929 16,810 54% Finance income 901 578 56% Finance cost (7,492) (7,196) -4% Foreign - exchange loss (1,621) (1,149) -41% Net finance (cost) (8,213) (7,767) -6% Profit before taxation 17,717 9,042 95% Taxation (1,754) (857) -105% Profit after taxation 15,963 8,185 95% Other comprehensive income Change in value of AFS (917) 1,998-146% Total Comprehensive income 15,046 10,183 48% Items Revenue Cost of sales Admin. Expenses Comment Increase is driven mainly by higher generation in TPL and increase in revenue due to income from food and beverages in THP Movement is driven by increase in cost of gas to achieve increase in generation Increase is largely due to repairs and maintenance expenses 12

Group Balance Sheet Year to Date Item Q3 2018 (YTD) FY 2017 Change NON Property, Plant and Equipment 150,346 141,836 6% CURRENT Other Non Current Assets 48,624 49,597-2% ASSETS (N million) Total Non Current Assets 198,970 191,433 4% Trade & Other Receivables 88,459 83,828 6% CURRENT Other Current Assets 11,183 10.262 9% ASSETS Total Current Assets 99,642 94,090 6% (N million) Total Assets 298,612 285,522 5% CURRENT LIABILITIES (N million) NON CURRENT LIABILITIES (N million) EQUITIES (N million) Trade and other payables 73,821 64,847 14% Other current liabilities 29,945 39,809-25% Total Current Liabilities 103,766 104,656-0.9% Long term borrowings 75,337 75,590-0.3% Other long term liabilities 9,569 9,569 0% Total Long Term Liabilities 84,906 85,159-0.3% Total Liabilities 188,671 189,815-0.6% Total Equity 109,941 95,708 15% Net Equity and Liability 298,612 285,522 5% Items PPE Trade and other Receivables Trade and other payables Borrowings Comments Increase is due to the assets being added in upgrade project in THP Increase is largely due to receivables owed by NBET for sale of power in Q3 2018 Increase is driven by payments due to gas suppliers at TPL and vendors for the upgrade of THP Reduced due to repayment of mature loans and bonds 13

Income Statement (YTD) 30,425 41,921 Revenue Trend (N Mn) 56,757 79,861 Q3 2015 Q3 2016 Q3 2017 Q3 2018 7,188 PBT Trend (N Mn) 9,042 17,717 Q3 2015 Q3 2016 Q3 2017 Q3 2018-12,783 14

Key Ratios Annualized ROaE Annualized ROaA 20.70% 11.65% 7.29% 4.10% Q3 2018 Q3 2017 ROaE Return on Average Equity Q3 2018 Q3 2017 ROaA Return on Average Asset Profit After Tax Margin Gross Profit Margin 46.28% 20% 14% 45.14% Q3 2018 Q3 2017 Q3 2018 Q3 2017 15

SEGMENT REVIEW

Segment Review Hospitality (N million) Q3 2018 (YTD) Q3 2017 (YTD) Variance Revenue 12,671 9,787 29% Cost of Sales (3,347) (2,688) -25% Gross profit 9,324 7,099 31% Other Income 135 124 9% Operating Profit 9,459 7,223 31% OPEX (6,018) (5,719) -5% EBITDA 3,441 1,504 129% Finance Income 11 174-94% PBT 3,452 1,678 106% Items Revenue Cost of sales Comment Change is driven by increase in charges, bolstered by availability of more rooms(more completed floors being released for use) and income from food and beverages. Higher in line with increase in Revenue 17

Segment Review Hospitality Quarterly Revenue and PBT Trend (N Mn) Quarterly PBT Margin Trend 3,349 575 3,829 4,192 4,663 3,629 1,983 877 1,152 1,426 17% 52% 24% 27% 31% Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Revenue PBT Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Quarterly Occupancy Rate 100% 53% 73% 54% 67% 66% 66% 50% 0% Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 18

Segment Review Power (N million) Q3 2018 (YTD) Q3 2017 (YTD) Variance Revenue 67,190 46,969 43% Cost of Sales (39,533) (28,445) -39% Gross profit 27,657 18,524 49% OPEX (3,999) (2,290) -75% EBIT 23,658 16,234 46% Forex Loss (1,621) (1,149) -41% Net Finance cost (5,014) (5,648) 11% PBT 17,023 9,437 80% Items Revenue Cost of sales OPEX Comment Change is due to increase in generation as a result of significant improvement in gas supply Change is driven by increase in gas underpinning increase in Revenue Change is largely due to increase in cost that are revenue driven, as well as repairs and maintenance 19

Segment Review Power POSITION AS NIGERIA S TOP GENCO (MWh) JULY AUGUST SEPTEMBER 528 463 298 239 212 458 452 383 312 275 403 402 363 361 325 EGBIN TRANSCORP SHIRORO AZURA OKPAI TRANSCORP EGBIN SHIRORO JEBBA KAINJI SHIRORO EGBIN transcorp JEBBA KAINJI 20

Segment Review Power Quarterly PBT Trend (N Mn) Gross Profit Margin 4,553 1,401 6,113 5,750 5,159 43% 40% 41% 40% 43% Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Quarterly Product Mix 64% 64% 64% 65% 65% 35% 35% 35% 34% 35% Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Capacity Charge Energy Sent Out Quarterly PBT Margin 24% 27% 24% 24% 7% Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 21

OUTLOOK

Q4 2018 Closing Expectations Business Q3 Actual Q4 Target ADR (N) 84,275 85,000 Hospitality Occupancy 66% 70% Rev Par (N) 55,928 59,500 Power Average (MW) Available Capacity Average (MW) Generated Capacity 644 700 469 500 23

QUESTIONS

APPENDIX

Our Journey So Far Transcorp was incorporated in 2004 Transcorp Ughelli Power emerges preferred bidder for Ughelli Power Plc (UPP) in 2012 Commissioning of Teragro Fruit juice concentrate plant in 2012 TPL: Achieve 2500MW Available Capacity Acquisition of NICON Hilton Hotel Abuja in 2005 Listing on the Stock Exchange in 2006 Acquisition of Metropolitan Calabar in 2009 Heirs Holdings becomes core investor 2011 Execution of management agreement with Hilton for Transcorp Hilton Ikoyi in 2013 Execution of Production Sharing Contract on OPL 281 in 2014 Management Agreement for Hilton Port Harcourt executed in 2014 Transcorp Hotels N20bn bond issuance in 2015 Commenced full Upgrade Project for Transcorp Hilton Abuja in 2016 Successful takeover of UPP in 2013 Transcorp Hotels IPO in 2014 Award as the Most Compliant Firm in Nigeria by the NSE in 2014 Merger of TUPL and UPP as Transcorp Power Ltd in 2015 Transcorp Power commissioned GT 15 a 115MW Gas Turbine in 2017 THP: Complete Transcorp Hotel Ikoyi and Portharcourt OPL 281: Production of oil and gas Expand into infrastructure development Expand into Africa PHASE ONE 2004-2011 PHASE TWO 2012-2017 PHASE THREE 2018-2022 1 2 3 26

Overview A Short Story of Execution We acquired the Ughelli power plant in November 2013, as part of Transcorp Plc s commitment to improve lives and transform Nigeria by powering homes, schools, public utilities and businesses. The Bureau of Public Enterprises gave us a target to increase power generation from 160MW to at least 670MW in 5 years. We surpassed this expectation 12 months ahead of schedule, generating 701MW by November, 2017. Diversified conglomerate with a growth agenda With a Purpose of Improving Lives, Transforming Nigeria Listed Company with over 300,000 shareholders Deeply rooted values are the 3Es of Execution, Enterprise and Excellence 27

Update on OPL 281 OPL 281 Hydrocarbons in Place Reservoir OIL MMSTB GAS BSCF Proven 174.64 346.74 Prospects 15.09 30.74 Total 189.73 377.48 Million Stock Tank Barrels (MMSTB), * Billion Standard Cubic Feet (BSCF) Partnership Update The partnership engagement with identified new technical partner is at advanced stage. Drilling Update The Drilling permit has been revalidated by DPR. A rig has been identified for exploratory drilling of a well and engagement has advanced, subject to NAPIMS approval Following NAPIMS request, the identified rig has been rescheduled for a re-inspection. 28

Contact: Mutiu Bakare mutiu.bakare@transcorpnigeria.com www.transcorpnigeria.com