NIGERIAN EQUITIES WEEKLY

NIGERIAN EQUITIES WEEKLY Market wrap 16 th Sept, 2016 Economy: At the tail end of the week, S&P announced a downward revision to Nigeria s rating to B while raising sovereign credit rating outlook to stable from negative. This was premised on the negative impact of low crude oil production, restrictive foreign exchange policy as well as delayed fiscal stimulus on macro growth. In our opinion, the concerns raised by S&P were largely to blame for the negative GDP growth in H1 2016. We however point out that the recent fiscal and monetary policy responses in form of flexible exchange rate, pricing of petroleum products and the gradual release of CAPEX spending in 2016 budget would serve to mitigate the impacts of these headwinds going forward. In addition, while we align with consensus expectation of a possible full year contraction in GDP, there is likelihood of improvement in aggregate economic output in 2017 buoyed by hope of early passage of the 2017 fiscal plan as well as recovery in oil output. However, we further point out that the expected pick-up in growth is likely to be clogged by the current dim outlook for Brent crude prices in 2017, as well as the yet-to-be resolved crisis in the Niger Delta. Equities: The benchmark NSE-ASI appreciated by +1.02% w/w buoyed largely by gains in Oil & Gas and Consumer Goods trackers. The trend in the index performance during the week suggests flight to safety by investors as index movement largely saw support from gains in bellwether stocks. Following from this, we expect that the current weak economic outlook plus the attractive yields on FI instruments will continue to drag equities performance in the near term. However, we advise that investors should lengthen their horizon and gradually build positions in quality names for a medium to long term horizon. Our view is premised on expectation of improved equities market performance buoyed by the recovery in aggregate economic performance. Currency: At the interbank market, the local currency appreciated by +0.6 w/w against the greenback to N308.69 per dollar as CBN maintained its daily intervention. The Naira also appreciated against the Pound Sterling and the Euro by +4.3 and +0.5 w/w to N400.47 per pound and N361 per Euro. In the parallel segment, Naira was relative flat w/w against the Dollar and the Euro at N425 per dollar and N470 per Euro while it gained +1.8 w/w on the Pound Sterling to N545. We expect the current pressure on NGN/USD rate to persist as liquidity remains a challenge. Fixed Income & Money Market: In the outgone week, money market rates expanded across all maturities as system liquidity remained short at N128bn, after falling N50bn w/w. The call rate almost doubled w/w to 36.0 from 19.46% while the 6month NIBOR increased by over 100bps w/w to 25.07%. The 1month and 3month NIBOR rates were up 48bps and 74bps w/w to 20.44% and 21.57% respectively. On Wednesday, the DMO sold N105bn worth of 5yr, 10yr and 20yr bonds at 15.14%, 15.54% and 15.6 respectively, slightly higher than July s auction. In the bond market, yields contracted by -4bps w/w to average at 15.23% as investors were largely bullish particularly on long dated maturities such as the Jul 34, which fell by -32bps w/w to 15.36%. While yield on the 5yr benchmark bond fell by -9bps w/w to 14.93%, yields on the 7yr and 10yr benchmark bonds increased by +7bps and +4bps w/w to 14.93% and 15.33% respectively. Going forward, there is scheduled to be a T-bill auction this week CBN plans to sell N90bn of the 91, 182 and 364 day bills. We expect the stop rates on these maturities to be in line with last week s auction where the 91, 182 and 364-day bills were sold at 14.0, 17.77% and 18.48% stop rates. Top Stocks as at Friday, 16 th Sept, 2016 DANGFLOUR N3.88 +243.36% TOTAL N250.00 +70.06% SEPLAT N326.00 +60.59% GUARANTY N27.05 +48.79% PRESCO N45.00 +36.36% Y-t-d Performance 6 3-3 Week-on-week Performance 9% 6% 3% -3% Contacts: -2.74% -21.51% -23.65% 1.02% -2.26% 0.44% 16.8 6.23% Olumide Awe +234 812 992 1016 Olumide.Awe@Investment-One.com -5.16% 1.15% Ayodeji Dawodu +234 812 992 1017 Ayodeji.Dawodu@Investment-One.com Ahmed Babajide +234 812 992 1010 Ahmed.Babajide@Investment-One.com 19.22% 3.09% 27.59%

Banking sector Investors continued to sell-off on Banking names for the second consecutive P/BV as our tracker closed down -2.26% w/w. This performance was driven by the dividend markdown in UBA (-6.87%), in addition to the declines in FCMB (-6.54%), WEMABANK (-4.55%), UBN (-4.27%) which offset the gain in STANBIC (+3.33%). However, despite the decline in the tracker, we continue 10.0 8.0 6.0 4.0 2.0 to see investors maintain positions in quality names such as GUARANTY 0.0 (+0.19%). Overall, the recently released results from banking names have been reflective of the impact of a c.5 depreciation of the local currency. This has seen PBT come in lower than expected as the surge in provisions weighed on FX gains. With this said, we believe the new FX regime and higher interest rate floor WoW Return may be supportive of the sector s performance. However, we believe the benefits from the high yield may be limited to rotation from liquid assets as rising non-performing loans (NPL) limit the potential for loan repricing. Also we may see FX driven growth in loan books, leading to further pressure on capital adequacy (CAR) and expansion in NPLs, as banks make conversions 2.0-2.0-4.0-6.0-8.0 0.54% -3.28% 0.19% -6.87% -0.68% at a higher rate. Furthermore, there may be an increase in NPLs in the manufacturing and general commerce sectors, due to the continued slowdown in the macroeconomic environment and the depreciation in the local currency, while the unrest in the Niger Delta may affect upstream oil and gas sector loan quality. Consequently, as a result of this and CBN s directive for banks YTD Return to increase provisions on foreign currency exposures, loan impairment charges are likely to remain high. This, in addition to rising inflation may be a drag on bottom line and ROE 6 3-3 14.64% 49.06% 24.56% 3.42% performances in H2 2016, resulting in conservative dividend announcements. -6-39.96% In the longer term, we believe that as the positive impact of the increased CAPEX spend kicks in; we may see a loan book expansion on the back of improvements in investor confidence. While our models are under review we rate: Guaranty (HOLD), FBNH (SELL), Access (BUY), Zenith (BUY) and UBA (BUY). 2

Oil & Gas sector Our Oil & Gas tracker climbed +6.23% w/w largely due to CONOIL (+33.84%). This combined with TOTAL (+3.7) and OANDO (+2.0) cancelled the decline in FO (-2.45%). We highlight that the increased demand for CONOIL may not be unconnected to the recent N3.00per share dividend announcement following the release of its much delayed FY 2015 results. 15.0 10.0 5.0 0.0 P/BV With this said, the recently-released results by the upstream segment were negatively impacted by the attacks on Oil and facilities, which contributed to the -45% y/y slide in SEPLAT s revenues in Q2 2016. Conversely, results from downstream players were reflective of higher margins as a result of the new PMS pricing template and improvements in access to FX as a result of supply from upstream companies. This in addition to the removal of import quotas, has allowed the major marketers to increase volumes at the expense of independent marketers who continue experience difficulties to sourcing foreign currency. However, we highlight some of the strategic efforts being made by some key players in the sector to boost earnings in the medium to long term. This includes FO s plans to raise N50bn in debt this year to fund the expansion of its downstream and power business. The company aims to expand the capacity of its Geregu power plant, which contributed N4bn to earnings in 2015. Nevertheless, our concern is on the financing cost given the high yields in the bond market. Likewise, SEPLAT s drive to diversify its revenue by expanding gas production may support earnings going forward, given the increase in demand for gas, which has led to new long term sales agreements such as the Azura Edo IPP. On the whole, while the downstream segment may likely be supported by higher margins as a result of the new PMS pricing, the upstream segment may be challenged by infrastructure sabotage, oil theft and regulation despite rising oil prices. However, as long-drawn efforts to pass the PIB (albeit be split into two) seems likely to yield fruit, coupled with the recent MOU signing for $80bn worth of investments in the Oil and Gas sector, portends opportunities for expansion in the upstream petroleum sector for the likes of SEPLAT, FO and OANDO in the medium to longer term. 6.0 4.0 2.0-2.0-4.0 12 6-6 WoW Return 3.7 2.0 0.31% -0.04% -2.45% YTD Return 95.54% 5 12.08% -13.73% 4% 7% -52.33% Turcas Petrol Shell Oman Hindustan Grupa Lotos TOTAL OANDO MOBIL FO 3

Agriculture sector The Agriculture tracker was flat w/w as both OKOMUOIL and PRESCO remained unchanged throughout the week. 20.0 P/BV With the new flexible exchange rate regime, we believe the sector will continue to benefit from the ban on importation of crude palm oil and the 10.0 slide in global prices which has contributed to the rapid increase in volume 0.0 for both players. In the medium to long term, we believe plans by PRESCO to increase its plantation area to 20,000ha by 2020 from 16,475ha and OKOMUOIL s recent 11,400ha land acquisition in Edo State, may support top line growth given the current supply deficit. WoW Return 10 8 6 4 2 OKOMUOIL PRESCO YTD Return 6 3-3 19.22% 40.15% 46% -3% 25% 4

Breweries sector The Breweries index under our coverage gained +1.15% w/w supported by a +2.29% return in NB and a +0.01% increase in GUINNESS. We attribute this performance to the opportunistic buying in the two names, as investors appear to be rotating to safety assets given the volatile nature of the market. Following from the recent earnings release by tickers in this space which showed weak turnover performance and contraction in margin, Nigerian 30.0 20.0 10.0 0.0 P/BV Brewers (just as the broad consumer goods players) recently executed a c.10-15% upward price review of their products to protect margin. While this may serve to support topline performance, it is our view that there may be negative consequence for volume growth given the squeeze on disposable income. Having said this, in the immediate, we expect some sort of improvement in trade cycle for Nigerian Brewers from the recent CBN s directive to banks to allocate 6 FX to manufacturing sector. Though limited liquidity in the current FX market should cap likely improvement in access to hard currencies. Furthermore, while the expected impact of improvement in liquidity (via disbursement of CAPEX spending by the government), on aggregate demand should serve to boost unit growth for consumer names, we highlight that rising inflationary pressure remains a clog on demand. 2.5 2.0 1.5 1.0 0.5 WoW Return 2.29% 0.01% NB GUINNESS In similar vein, we see continued pressure on input costs and opex from volatility in NGN/USD rate and higher energy costs as a drag on performance of tickers in this space for the rest of the year. Overall, we believe performance of players in this space is largely susceptible YTD Return to macro issues such as rising inflation, growing unemployment, among others and will continue to weigh on earnings. Over the medium to longer term, we expect both GN and NB to also benefit from recent investments in capacity expansion, attempts at increasing local 2 1-1 -2 9% -17% 1% 5% 1% -12% sourcing of input material to c.6 as well as strides in diversifying their portfolio to impact on performance We rate both NB and GUINNESS a SELL based on our 2015/2016 target prices o f N91.76 and N90.80. 5

Consumer Goods sector With the exception of CADBURY which shed 1.43% w/w, consumer goods tickers under our coverage closed up w/w. As such, our consumer goods tracker gained 3.09% w/w. This was buoyed largely by a +14% gain in UNILEVER and a +4% increase in PZ.. As reflected by the recent Q2 2016 results, margin and bottom-line growth for Consumer Goods players are contracting, largely on the back of spike in input costs and FX loss on dollar debt post Naira devaluation. In the near term, while the recently introduced exchange rate mechanism had resulted in elevated input costs pressure for consumer goods players, we highlight that recent CBN circular mandating the allocation of 6 FX to manufacturing sectors should serve to ease access to FX for players in this space. This should translate to shorter trade cycle. However, this is subject to improved liquidity as recent volume of transactions showed low turnover. On the positive, we see increased Naira revenue to subnational level of governments with the new exchange rate regime given opportunity to convert their monthly dollar FAAC earnings at higher rate. This should aid payment of backlog of unpaid salary arrears to workers, raising their purchasing power and consequently demand for consumer names products. In similar vein, we expect performance of tickers in this space to be reflective of the impact of the recent liquidity injection from government s CAPEX spending (recent data put CAPEX spending by government so far this year at c.n332bn). 60.0 45.0 30.0 15.0 0.0 2 1-1 PZ UNILEVER 4.56% PZ CADBURY 14.23% UNILEVER FLOURMILL -1.43% CADBURY NESTLE P/BV UACN WoW Return Strauss Illovo sugar Tongatt Hullet Jollibee Food 2.81% 3.68% 0.47% 0.12% 0.96% DANGSUGAR FLOURMILL HONYFLOUR NESTLE UACN Conclusively, we see persisting macro headwinds ranging from inflation, rising unemployment, among others as a clog on consumer names performance. Ratings across our universe of consumer goods stocks are: PZ (SELL), UNILEVER (SELL), FLOURMILL (SELL) while we have NESTLE as HOLD. 4 2-2 7% UNILEVER -4% -1% -14% CADBURY YTD Return FLOURMILL NESTLE 11% 6% 9% UACN Strauss Nestle India Illovo sugar 31% Tongatt Hullet 14% Jollibee Food 6

Industrial sector Industrial trackers under our coverage returned 0.44% w/w following a +1.77% w/w gain in DANGCEM which made up for the flattish close in 30.0 P/BV WAPCO, CCNN and ASHAKACEM. The positive close in the index may not 20.0 be unconnected with continued positive momentum in DANGCEM following 10.0 its recent price hike and continued rotation by investors towards quality 0.0 names. Following from DANGCEM s recent price hike, we see upward price review by players in this space. This should serve to support top line performance. ASHAKACEM DANGCEM WAPCO CCNN Siam Cement Ultratech Semen Persero PPC Holcim Similarly, while we expect budget CAPEX spending to stimulate volume growth, we highlight that volume performance from retail/private sector segment may be sub-optimal as likelihood of slowdown in construction activities due to the recent hike could be a clog on volume. In the near term, while we see input cost pressure for sector players from shift to expensive LPFO (following volatility in gas supply) as a potential downside for earnings, we highlight that the ongoing efforts at diversifying 2.0 1.5 1.0 WoW Return 1.77% energy sources away from gas (reflected in investment in coal mill and power plants by both DANGCEM and WAPCO) should be supportive of margins 0.5 over the medium to longer term. In addition, we are positive on the sector in the medium to longer term in spite of the immediate challenge. Our view is premised on the fact that the sector is strategically positioned to benefit from: (1) improved infrastructure spending (increase in capex to 3 in the recently-passed 2016 budget, against 15% in 2015 budget), and (2) the recent campaign for concretemade road. Furthermore, the recently released national housing model and the plans by Lagos state government to build 187,000 houses annually in the next four years supports the sector s positive medium to longer term outlook. Overall, we also believe that the planned y/y increased infrastructure spending by the government should serve as boost to earnings in the medium to longer term 6 3-3 -6 44% 18% 9% 2% -2-8% -34% -35% -34% ASHAKACEM DANGCEM YTD Return WAPCO CCNN Siam Cement Ultratech Cement Semen Persero PPC Holcim (Indonesia) 7

EQUITY MARKET INDICES AFRICA*** Value DOD% MOM% YTD (%) 52 WK LO. 52 WK HI. DAILY VOL. MKT CAP. P/ E P/ BV D.Y (%) NGSEINDX INDEX 27,839.93-0.07 0.69-2.80 22,330.96 31,256.16 228.93 9,629.83 14.07 1.38 4.30 JALSH INDEX 52,042.23 0.40-1.38 2.66 45,975.78 54,760.91 452.82 10,868.78 28.12 2.03 2.87 NSEASI INDEX 132.24 0.50-9.89-9.24 129.65 148.32 16.02 1,895.88 11.54 1.75 6.60 EGX 30 INDEX 7,974.12 0.73-4.12 13.82 5,526.02 8,481.13 81.13 216.08 14.78 1.46 1.86 MAURITIUS 1,794.17-0.02-0.89-0.93 1,737.59 1,920.22 1.85 193.17 12.43 0.82 3.21 MOROCCO 294.43 0.06 0.69 14.80 252.08 303.77 0.64 367.58 18.64 2.84 4.08 MSCI FM 487.30-0.31-0.93-3.66 449.79 534.26 208.78 271.21 10.78 1.47 4.29 EMERGING** Value DOD% MOM% YTD (%) 52 WK LO. 52 WK HI. DAILY VOL. MKT CAP. P/ E P/ BV D.Y (%) SHANGHAI SE 3,026.05 0.77-3.17-14.50 2,638.30 3,684.57 11,921.50 26,648.40 17.55 1.70 1.97 S&P BSE SENSEX 28,634.50 0.12 1.99 9.64 22,494.61 29,077.28 13.83 48,192.34 21.35 2.84 1.48 KARACHI 100 40,414.72 0.13 2.32 23.15 29,784.60 40,542.64 216.25 7,282.93 10.87 1.93 4.97 IBOV INDEX 57,999.60 1.61-1.86 33.79 37,046.07 60,310.50 382.55 1,814.64 159.39 1.50 2.80 INDEXCF INDEX 1,987.89 0.30 1.44 12.86 1,583.04 2,063.13 22,026.08 30,231.38 7.45 0.80 4.46 MSCI EM 885.45-0.40-2.73 11.50 686.74 929.99 22,603.54 7,814.15 15.05 1.53 2.61 DEVELOPED Value DOD% MOM% YTD (%) 52 WK LO. 52 WK HI. DAILY VOL. MKT CAP. P/ E P/ BV D.Y (%) DOW JONES 18,238.06 0.63-1.70 4.67 15,450.56 18,668.44 278.54 5,435.99 17.56 3.13 2.57 S&P 500 INDEX 2,153.57 0.67-1.39 5.36 1,810.10 2,193.81 1,474.37 19,233.64 20.22 2.83 2.14 FTSE 100 INDEX 6,801.57 1.36-0.84 8.96 5,499.51 6,955.34 1,387.76 1,868.33 56.33 1.80 4.06 CAC 40 INDEX 4,392.98 1.40-0.17-5.26 3,892.46 5,011.65 214.51 1,199.16 22.60 1.38 3.82 DAX INDEX 10,367.26 0.89-1.68-3.50 8,699.29 11,430.87 214.98 981.79 24.05 1.65 2.96 NIKKEI 225 16,519.29 0.70-0.16-13.21 14,864.01 20,012.40 1,271.30 291,950.88 20.53 1.59 1.95 HANG SENG 23,550.45 0.92 2.79 7.47 18,278.80 24,364.00 2,116.27 14,953.75 12.63 1.21 3.49 FTSE STR TIMES 754.36-0.04-0.93 8.40 664.99 776.90 65.62 66.18 13.57 0.99 5.72 MSCI U.S 2,039.51-0.37-1.96 4.61 1,716.31 2,090.32 1,626.24 20,388.00 20.78 2.84 2.11 8

Sector Performance 52 Wk High 52 Wk Low 1M (%) 3M (%) 6M (%) 12M (%) YTD (%) 2015 (%) All Share Index 31256.16 22330.96 0.69-4.81 8.35-8.22-2.80-17.36 Sector 52 Wk High 52 Wk Low 1M (%) 3M (%) 6M (%) 12M (%) YTD (%) 2015 (%) ACCESS Banking 6.50 3.48-0.71-6.08 40.76 7.34 14.64-26.52 DIAMONDBNK Banking 3.50 1.02-1.74-52.72-19.29-66.76-50.87-58.78 FIDELITYBK Banking 1.59 0.86-12.62-33.82-25.00-40.40-40.00-7.41 FBNH Banking 6.48 2.95-0.65-29.84-15.62-51.34-39.96-41.70 GUARANTY Banking 27.67 13.16 7.33 25.40 72.94 10.39 49.06-27.80 STANBIC Banking 23.50 12.23 6.90-4.44 2.99-28.44-6.23-38.78 SKYEBANK Banking 2.40 0.56 3.13-42.11-31.25-70.80-58.23-40.60 UBA Banking 5.36 2.48-3.44-12.29 11.67 0.48 24.56-21.40 FCMB Banking 2.40 0.68-21.26-42.53 26.58-58.33-40.83-32.13 ZENITHBANK Banking 18.85 8.83-8.04-12.73 13.60-19.72 3.42-23.68 ETI Banking 19.26 10.40 0.00-32.35-19.86-38.83-31.55-9.58 STERLNBANK Banking 2.23 0.93 0.00-32.45-41.04-50.96-44.26-27.95 UBN Banking 6.90 3.70 11.54-14.71-24.61-26.15-36.96-18.82 UNITYBNK Banking 1.83 0.58-19.78-38.14 4.29-45.93-34.82 124.00 WEMABANK Banking 1.04 0.59 3.23-22.89-20.00-34.02-36.00 4.17 Sector 52 Wk High 52 Wk Low 1M (%) 3M (%) 6M (%) 12M (%) YTD (%) 2015 (%) ASHAKACEM Industrials 26.50 18.96 0.00-5.14-16.88-11.33-20.20 14.16 DANGCEM Industrials 203.96 122.90-3.71-4.13 6.79 5.51 3.65-15.00 WAPCO Industrials 95.45 49.40 0.46-24.99-23.60-36.85-36.07 20.25 CCNN Industrials 10.10 5.81 3.27-25.00-30.23-31.82-35.83-10.01 Sector 52 Wk High 52 Wk Low 1M (%) 3M (%) 6M (%) 12M (%) YTD (%) 2015 (%) FO Oil & Gas 342.00 155.18-2.97-21.54-47.02-32.10-52.92 44.80 CONOIL Oil & Gas 35.10 16.45 62.12 60.64 74.63 23.55 41.88-35.08 MOBIL Oil & Gas 187.53 118.06 5.13 0.88 0.00 17.93 6.88 1.27 OANDO Oil & Gas 11.15 2.90-0.39-27.29 27.25-53.17-13.73-63.38 TOTAL Oil & Gas 262.50 137.75 7.58 51.73 75.00 74.07 78.56 3.16 SEPLAT Oil & Gas 367.50 151.74 35.83-6.86-1.21 NA 60.59-45.28 Sector 52 Wk High 52 Wk Low 1M (%) 3M (%) 6M (%) 12M (%) YTD (%) 2015 (%) NB Breweries 149.49 88.00 3.88-3.69 36.53 5.41 5.41-17.73 GUINNESS Breweries 158.00 89.85 7.53-3.85-7.40-35.49-16.94-28.40 Sector 52 Wk High 52 Wk Low 1M (%) 3M (%) 6M (%) 12M (%) YTD (%) 2015 (%) PZ FMCG 32.00 17.27-0.71-18.60-24.83-30.50-29.69 7.98 UNILEVER FMCG 47.00 26.60 19.26 40.70 56.23 1.75 6.38 20.81 CADBURY FMCG 24.00 12.00 1.43-21.11-17.44-41.01-17.20-57.13 DANGFLOUR FMCG 6.12 0.78-6.51-20.65 33.79 36.14 243.36 N/A DANGSUGAR FMCG 7.19 5.16 1.23-6.00 11.53-4.78 9.12-5.04 FLOURMILL FMCG 24.99 15.93-2.60-13.23 0.47-19.18-8.22-46.94 HONYFLOUR FMCG 2.91 1.29 2.92-21.67-12.96-42.45-31.22-40.75 NESTLE FMCG 880.00 612.10 0.00 8.98 21.32 0.60-4.07-15.00 UACN FMCG 32.00 15.58 9.45 11.69 8.63-31.55 4.96-38.97 Sector 52 Wk High 52 Wk Low 1M (%) 3M (%) 6M (%) 12M (%) YTD (%) 2015 (%) OKOMUOIL Agriculture 39.37 26.33-0.69 20.00 8.86 24.35 18.81 19.53 PRESCO Agriculture 45.30 29.70 21.75 26.05 31.39 44.69 36.36 34.69 9

STOCK VALUATIONS AND PEERS Banks TP Price Up/Downside MCap. (US$'m) 2016E EPS Growth 2016 P/BV 2016E ROE 2016E DY (%) Access Bank Nigeria 7.93 5.56 42.64 496.42 2.39 2.53 40.96 0.38 20.37 10.70 FBNH Nigeria 4.79 3.08 55.49 341.23 2.52 1.91-79.87 0.18 1.91 9.61 GTBank Nigeria 28.55 27.10 5.36 2461.68 6.96 6.73 5.72 1.79 29.81 6.69 Diamond Bank Nigeria 2.20 1.13 94.78 80.78 1.70 1.42-85.54 0.11 1.13 8.85 UBA Nigeria 6.91 4.21 64.24 471.41 2.52 2.61 14.74 0.38 16.93 12.45 Zenith Bank Nigeria 20.59 14.53 41.69 1408.00 4.42 3.87 6.33 0.74 16.67 11.31 Barclays South Africa 16057.75 14963.00 7.32 9056.05 8.35 7.85 8.48 1.39 16.68 6.87 Nedbank South Africa 21107.85 22065.00-4.34 7811.24 9.63 8.91 7.21 1.37 14.85 5.21 Equity Bank Kenya 40.91 25.50 60.42 949.56 4.78 4.36 0.43 1.29 26.93 8.41 KCB Kenya 41.99 26.50 58.45 801.76 4.00 3.89 16.52 0.89 24.70 6.86 ADCB UAE 7.84 6.31 24.19 9612.91 8.16 7.69 25.68 1.34 18.64 6.39 Gulf Bank Kuwait N/A 232.00 N/A 2343.70 16.57 15.47 5.00 N/A N/A 2.59 BPI Phillipines 98.10 103.80-5.49 8507.11 18.86 16.98 0.43 2.54 13.89 1.84 SHB Saudi Arabia 12.85 9.95 29.15 3032.38 5.95 6.23 11.20 0.89 16.72 3.28 Average 2879.87 2677.69 N/A 3383.87 6.92 6.05-14.45 1.02 9.62 7.22 Industrials TP Price Up/Downside MCap. (US$'m) EV/EBITDA 2016E EPS Growth 2016 DY (%) Ashaka Cement Nigeria 23.98 19.95 20.20 137.89 8.32 15.55 10.45-39.71 1.77 Dangote Cement Nigeria 191.36 176.21 8.60 9267.62 9.56 16.01 13.21 15.29 4.45 Lafarge Wapco Nigeria 65.69 56.26 16.77 870.01 8.89 N/A 16.57-18.67 2.74 Siam Cement Thailand 574.46 524.00 9.63 18071.56 9.70 12.74 12.48 35.06 3.42 Cemex Mexico 17.29 14.60 18.40 10417.01 8.74 31.60 18.69 N/A 0.00 Ultratech Cement India 3778.76 3990.45-5.30 16356.46 15.49 34.23 26.12 8.96 0.30 Semen Persero Indonesia 10745.00 10125.00 6.12 4571.56 7.96 13.86 12.82-18.68 3.01 PPC Ltd South Africa 734.96 659.00 11.53 455.99 6.68 17.16 16.52-16.88 1.79 Holcim Indonesia 1017.50 1005.00 1.24 586.22 7.92 30.85 22.02 N/A 1.50 Average 1715.60 1657.65 10.43 6075.76 8.63 20.20 15.53-8.98 2.33 Agriculture TP Price Up/Downside MCap. (US$'m) EV/EBITDA 2016E EPS Growth 2016 DY (%) Okomu Oil Palm Nigeria 43.06 36.00 19.61 105.99 5.09 10.24 9.49 69.33 0.59 Presco Nigeria 48.14 45.00 6.98 138.89 5.75 11.92 8.77-55.30 3.93 BW Plantation Indonesia 181.00 202.00-10.40 484.75 N/A N/A N/A N/A 0.00 United Malacca Malaysia 6.99 5.72 22.20 290.18 9.95 18.04 15.59 25.21 2.74 Sampoerna Agro Indonesia 2193.00 2090.00 4.93 300.69 7.16 15.84 12.75-27.22 1.07 Kwantas Malaysia N/A 1.24 N/A 93.71 N/A N/A N/A 64.87 N/A Average 494.44 396.66 N/A 235.70 6.99 14.01 11.65 15.38 1.67 10

Oil & Gas TP Price Up/Downside MCap. (US$'m) EV/EBITDA 2016E EPS Growth 2016 DY (%) Forte Oil Nigeria 211.43 155.35 36.10 624.51 14.84 15.08 10.09 124.18 N/A Conoil Nigeria N/A 35.10 N/A 75.18 N/A 21.73 37.34 177.50 2.46 Mobil Nigeria 188.08 171.00 9.99 190.31 7.00 8.12 8.49-23.80 7.55 Oando Nigeria 6.86 5.09 34.77 189.06 8.99 N/A 11.19 72.78 0.00 Total Nigeria 290.16 262.50 10.54 275.08 3.74 7.41 8.41-23.49 9.98 Seplat Nigeria 349.95 326.00 7.35 564.03 3.13 N/A 3.75-76.00 4.27 Zhejiang Haiyue China N/A 12.14 N/A 702.64 N/A N/A N/A -79.31 N/A Grupa Lotos Warsaw 32.83 28.17 16.54 1355.34 5.34 8.21 8.46 85.95 0.00 Erg Spa Italy 13.38 10.24 30.66 1720.60 7.83 17.47 18.19 N/A 4.88 Hindustan Pet. Corp India 402.45 403.45-0.25 6121.48 6.35 9.88 9.70 228.45 2.96 Shell Oman 2.15 1.90 13.16 482.38 8.62 11.88 12.67 15.45 6.32 Turcas Petrol Turkey 1.77 1.54 14.94 139.75 59.82 20.53 10.27-2523328.60 1.95 Average 149.91 117.71 N/A 1036.70 12.57 13.37 12.60-229347.90 4.04 Breweries TP Price Up/Downside MCap. (US$'m) EV/EBITDA 2016E EPS Growth 2016 DY (%) Nigerian breweries Nigeria 113.53 143.36-20.81 3,508.38 11.92 29.85 25.81-14.23 2.98 Guinness Nigeria 91.45 100.00-8.55 464.78 8.89 48.40 25.20-18.55 1.95 Heineken Netherlands 85.85 77.96 10.13 50,194.99 11.25 21.25 19.68 25.38 1.73 Ghana Breweries Ghana 2.00 1.79 11.73 137.97 5.52 N/A 12.79-424.39 N/A AEFES Turkey 20.15 19.54 3.12 3,888.46 9.87 24.00 19.52 61.39 1.40 EABL Kenya 325.07 263.00 23.60 2,052.24 9.22 19.56 17.24-10.00 3.26 CCU Chile 7,543.71 6,728.00 12.12 3,686.64 8.23 18.92 17.07 1.05 2.65 Average 1,168.82 1,047.66 4.48 9,133.35 9.27 27.00 19.62-54.20 2.33 Consumer Goods TP Price Up/Downside MCap. (US$'m) EV/EBITDA 2016E EPS Growth 2016 DY (%) PZ Nigeria 17.52 18.07-3.06 221.44 8.02 37.03 25.20-53.92 2.17 Unilever Nigeria 23.09 46.01-49.82 537.25 20.26 86.00 51.99-50.00 0.58 Cadbury Nigeria 15.64 14.20 10.13 82.32 7.19 16.65 20.40-46.04 1.80 DSR Nigeria 6.56 6.58-0.34 243.70 2.08 6.16 5.14-1.03 8.86 FMN Nigeria 23.00 19.09 20.49 154.62 4.29 7.30 6.43 63.22 8.45 Nestle Nigeria 773.34 825.00-6.26 2018.34 14.43 36.12 24.73 6.77 2.21 UACN Nigeria 32.79 21.78 50.54 129.12 8.35 13.78 11.83-53.19 4.45 Strauss Group Israel 6800.00 6022.00 12.92 1712.44 N/A 15.79 14.91 9.09 2.49 Illovo sugar South Africa N/A N/A N/A N/A N/A N/A N/A -29.82 N/A Tongatt Hullet South Africa N/A 11866.00 N/A 1144.59 6.84 13.60 9.00-17.87 2.84 Jollibee Food Phillipines 239.26 248.60-3.76 5574.48 19.28 42.00 36.42-11.25 0.84 Average 793.30 1591.61 N/A 1010.80 9.29 27.44 20.14-14.97 3.53 11

Closure(s) & Payment(s) for the Year Corporate Actions Dividend Script *Dividend Interim/ Event Dates 2015/2016FYE Issue Yield Final Declaration Closure Payment AGM ACCESS Dividend N0.30k Script Nil *Dividend 6.7 FYE'15 Interim/ final 13-Mar-16 13-Apr-16 Event Dates 27-Apr-16 27-Apr-16 ACCESS* 2014/2015FYE N0.25k Issue Nil Yield 4.46% H1'16 Final Interim Declaration 19-Aug-16 6-Sep- Closure 2016 19-Sep- Payment 2016 AGM Nil ACCESS AFRIPRUD N0.30k N0.43k Nil Nil 6.7 13.03% FYE'15 FYE'15 final final 13-Mar-16 11-Mar-16 13-Apr-16 29-Mar-16 27-Apr-16 13-Apr-16 27-Apr-16 12-Apr-16 ACCESS* N0.25k Nil 5.85% H1'15 Interim 20-Aug-15 3-Sep- 2015 10-Sep- 2015 Nil ASHAKACEM N0.15k Nil 2.1 FYE'15 final 28-Mar-16 26-Apr-16 11-May-16 10-May-16 AFRIPRUD N0.43k Nil 13.03% FYE'15 final 11-Mar-16 29-Mar-16 13-Apr-16 12-Apr-16 BETAGLASS N0.62k Nil 3.48% FYE'14 final 30-Mar-15 12-Jun-15 10-Jul-15 09-Jul-15 ASHAKACEM N0.15k Nil 2.1 FYE'15 final 28-Mar-16 26-Apr-16 11-May-16 10-May-16 BERGER PAINTS N0.75k Nil 7.93% FYE'15 final 31-Mar-16 04-May-16 13-Jun-16 09-Jun-16 BETAGLASS N0.62k Nil 3.48% FYE'14 final 30-Mar-15 12-Jun-15 10-Jul-15 09-Jul-15 CADBURY N0.65k Nil 1.63% FYE'14 final 30-Mar-15 15-May-15 11-Jun-15 10-Jun-15 BERGER PAINTS N0.75k Nil 7.93% FYE'15 final 31-Mar-16 04-May-16 13-Jun-16 09-Jun-16 CAP N0.85k Nil 2.47% FYE'14 final 30-Mar-15 01-Jul-15 19-Jun-15 18-Jun-15 CADBURY N0.65k Nil 1.63% FYE'14 final 30-Mar-15 15-May-15 11-Jun-15 10-Jun-15 CAVERTON N0.10k Nil 3.18% FYE'14 final 31-Mar-15 23-Apr-15 6-May-15 6-May-15 CAP N0.88k Nil 2.47% FYE'14 final 30-Mar-15 TBD TBD TBD CCNN N0.35k Nil 2.83% FYE'14 final 31-Mar-15 24-Jul-15 18-Aug-15 13-Aug-15 CAVERTON N0.10k Nil 3.18% FYE'14 final 31-Mar-15 23-Apr-15 6-May-15 6-May-15 CONOIL N3.00K Nil 11.45% FYE15 final 14-Sept-16 03-Oct-16 07-Nov-16 28-Oct-16 CCNN N0.35k Nil 2.83% FYE'14 final 31-Mar-15 24-Jul-15 18-Aug-15 13-Aug-15 COURTVILLE N0.04k Nil 8.0 FYE'15 Interim 23-Jul-15 10-Aug-15 31-Aug-15 TBA COURTVILLE N0.04k Nil 8.0 FYE'15 Interim 23-Jul-15 10-Aug-15 31-Aug-15 TBA CUSTODIAN N0.14k Nil 3.58% FYE'15 final 01-Apr-16 20-Aprl-16 03-May-16 03-May-16 CUSTODIAN N0.14k Nil 3.58% FYE'15 final 01-Apr-16 20-Aprl-16 03-May-16 03-May-16 DANGCEM N8.00k Nil 5.4 FYE'15 final 26-Mar-16 11-Apr-16 21-Apr-16 19-Apr-16 DANGCEM N8.00k Nil 5.4 FYE'15 final 26-Mar-16 15-Apr-16 21-Apr-16 19-Apr-16 DIAMONDBNK N0.10k Nil 2.21% FYE'14 final 31-Mar-15 16-Apr-15 4-May-15 30-Apr-15 DIAMONDBNK N0.10k Nil 2.21% FYE'14 final 31-Mar-15 16-Apr-15 4-May-15 30-Apr-15 ETI N0.40k Nil Nil FYE'15 final 14-Apr-16 19-Jul-16 2-Aug-16 17-Jun-16 ETI Nil 1 for 15 Nil FYE'14 final 21-Apr-15 25-Jun-15 TBA TBA FBNH N0.15k Nil 4.42% FYE'15 final 26-Apr-16 9-May-16 30-May-16 26-May-16 FBNH N0.10k 1 for 10 1.05% FYE'14 final 8-Apr-15 4-May-15 25-May-15 TBA FCMB N0.10k Nil 11.36% FYE'15 final 30-Mar-16 19-Apr-16 02-May-16 29-Apr-16 FCMB N0.10k Nil 11.36% FYE'15 final 30-Mar-16 19-Apr-16 02-May-16 29-Apr-16 FIDELITY N0.16k Nil 11.94% FYE'15 final 31-Mar-16 22-Apr-16 05-May-16 05-May-16 FIDELITY N0.16k Nil 11.94% FYE'15 final 31-Mar-16 22-Apr-16 05-May-16 05-May-16 FIDSON N0.15k Nil 4.46% FYE'14 final 26-Mar-15 05-Oct-15 16-Oct-15 14-Oct-15 FIDSON N0.15k Nil 4.46% FYE'14 final 26-Mar-15 TBD TBD TBD FO N3.45k Nil 1.01% FYE'15 final 28-Jan-16 21-Apr-16 29-Apr-16 22-Apr-16 FO N3.45k Nil 1.01% FYE'15 final 28-Jan-16 21-Apr-16 29-Apr-16 22-Apr-16 GLAXOSMITH N0.30k Nil 1.2 FYE'15 final 30-Mar-15 25-May-16 24-Jun-16 23-Jun-16 GLAXOSMITH N0.30k Nil 1.2 FYE'15 final 30-Mar-15 25-May-16 24-Jun-16 23-Jun-16 GUARANTY N1.52k Nil 9.35% FY'15 final 11-March-16 28-Mar- 2016 5-Apr-16 5-Apr-16 GUARANTY* N1.52k Nil 9.35% FY'15 final 11-March-16 28-Mar- 2016 5-Apr-16 5-Apr-16 GUARANTY* N0.25k Nil 1.0 H116 final 17-Aug-16 1-Sep- 2016 9-Sep-16 Nil GUINNESS N3.20k Nil 2.5 FYE'15 final 7-Sept-15 12-Oct-15 27-Nov-15 26-Nov-15 GUINNESS N3.20k Nil 2.5 FYE'15 final 7-Sept-15 12-Oct-15 27-Nov-15 26-Nov-15 JBERGER N1.50k Nil 3.61% FYE'15 final 29-Mar-16 03-June-16 17-Jun-16 16-Jun-16 JBERGER N1.50k Nil 3.61% FYE'15 final 29-Mar-16 03-June-16 17-Jun-16 16-Jun-16 LIVESTOCK N0.10k Nil 4.41% FYE'14 final 27-Mar-15 28-May-15 18-Jun-15 17-Jun-15 LIVESTOCK N0.10k Nil 4.41% FYE'14 final 27-Mar-15 28-May-15 18-Jun-15 17-Jun-15 MOBIL N7.20k Nil 4.62% FYE'15 final 29-Mar-16 30-Apr-16 25-May-16 1-Jun-16 MOBIL N7.20k Nil 4.62% FYE'15 final 29-Mar-16 30-Apr-16 25-May-16 1-Jun-16 MRS N1.10k Nil 2.33% FYE'15 final 01-Apr-16 15-Jul-16 05-Aug-16 04-Aug-16 MRS N1.10k Nil 2.33% FYE'15 final 01-Apr-16 15-Jul-16 05-Aug-16 04-Aug-16 NASCON N0.55k Nil 7.77% FYE'15 final 30-Mar-16 13-May-16 23-May-16 19-May-16 NASCON N0.55k Nil 7.77% FYE'15 final 30-Mar-16 12-May-16 23-May-16 19-May-16 NAHCO N0.20k Nil 10.26% FYE'14 final 27-Mar-15 18-May-15 11-Jun-15 11-Jun-15 NAHCO N0.20k Nil 10.26% FYE'14 final 27-Mar-15 18-May-15 11-Jun-15 11-Jun-15 NB N3.60k Nil 3.7% FYE'15 final 10-Feb-16 9-Mar-16 12-May-16 11-May-16 NB N3.60k Nil 3.7% FYE'15 final 10-Feb-16 9-Mar-16 12-May-16 11-May-16 NESTLE N19.00k Nil 1.5 FYE'15 final 25-Feb-16 13-May-16 24-May-16 23-May-16 NESTLE N19.00k Nil 1.5 FYE'15 final 25-Feb-16 13-May-16 24-May-16 23-May-16 OKOMUOIL N0.25k Nil 0.96% FYE'14 final 31-Mar-15 18-May-15 29-Jun-15 TBD OKOMUOIL N0.10k Nil 0.3% FYE'15 final 14-Apr-16 10-May-16 27-Jun-16 21-Jun-16 PZ N0.61k Nil 2.04% FYE 15 final 24-Aug-15 14-Sep- 2015 30-Sep- 2015 25-Sep-15 PZ N0.61k Nil 2.04% FYE 15 final 24-Aug-15 14-Sep- 2015 30-Sep- 2015 25-Sep-15 REDSTAREX N0.35k Nil 7.04% FYE'15 final 28-Jul-15 05-Aug-15 14-Sep-15 03-Sep-15 REDSTAREX N0.35k Nil 7.04% FYE'15 final 28-Jul-15 05-Aug-15 14-Sep-15 03-Sep-15 SEPLAT N8.00k Nil 5.2 FYE'15 final 26-Mar-15 TBD TBD TBD SEPLAT N8.00k Nil 5.2 FYE'15 final 26-Mar-16 20-May-16 9-Jun-16 1-Jun-16 STANBIC N0.15k Nil 0.5 FYE'14 final 31-Mar-15 14-Apr-15 TBD TBD STANBIC N0.15k Nil 0.5 FYE'14 final 31-Mar-15 14-Apr-15 05-Jun-15 03-Jun-15 STANBIC N0.90k Nil 3.46% H1'15 Interim 09-Jul-15 31-Jul-15 28-Aug-15 06-Aug-15 STANBIC N0.90k Nil 3.46% H1'15 Interim 09-Jul-15 31-Jul-15 28-Aug-15 06-Aug-15 STERLNBANK N0.09k Nil 5.9 FYE'15 final 25-Mar-16 4-Apr-16 19-Apr-16 19-Apr-16 STERLNBANK N0.09k Nil 5.9 FYE'15 final 25-Mar-16 4-Apr-16 19-Apr-16 19-Apr-16 TOTAL N12.00k Nil 7.8 FYE'15 final 01-Apr-16 22-Apr-16 13-Jun-16 10-Jun-16 TOTAL N3.00k Nil 1.65% H1'16 Interim 29-July-16 22-Aug-16 06-Sept-16 Nil TRANSCORP Nil 1 for 20 Nil FYE'15 final 30-Mar-16 19-Apr-16 N/A 29-Apr-16 TRANSCORP Nil 1 for 20 Nil FYE'15 final 30-Mar-16 19-Apr-16 Nil 29-Apr-16 UACN N1.00k Nil 4.9 FYE'15 final 25-Mar-16 20-Mar-16 9-Jun-16 8-Jun-16 UACN N1.00k Nil 4.9 FYE'15 final 25-Mar-16 20-Mar-16 9-Jun-16 8-Jun-16 UNITED CAPITAL N0.35k Nil 9.25% FYE'15 final 25-Mar-16 31-Mar-16 18-Apr-16 14-Apr-16 UNITED CAPITAL N0.35k Nil 9.25% FYE'15 final 25-Mar-16 31-Mar-16 18-Apr-16 14-Apr-16 UBA N0.40k Nil 11.73% FYE'15 final 26-Mar-15 05-Apr-16 12-Apr-16 8-Apr-16 UBA N0.40k Nil 11.73% FYE'15 final 26-Mar-15 05-Apr-16 12-Apr-16 8-Apr-16 UBA N0.20k Nil 6.06% H1'15 Interim 3-Sep-15 10-Sep-15 16-Sep-15 Nil UBA N0.20k Nil 4.49% H1'16 Interim 25-Aug-16 12-Sep-16 19-Sep-16 Nil UNILEVER N0.05k Nil 0.24% FYE'15 final 26-Mar-16 15-Apr-16 13-May-16 12-May-16 UNILEVER N0.05k Nil 0.24% FYE'15 final 26-Mar-16 15-Apr-16 13-May-16 12-May-16 WAPCO N3.00k 1 for 10 3.7 FYE'15 final 13-Mar-16 25-Apr-16 12-May-16 12-May-16 WAPCO N3.00k 1 for 10 3.7 FYE'15 final 13-Mar-16 25-Apr-16 12-May-16 12-May-16 ZENITHBANK N1.55k Nil 12.08% FYE'15 final 5-Mar-16 29-Mar-16 6-Apr-16 6-Apr-16 ZENITHBANK N1.55k Nil 12.08% FYE'15 final 5-Mar-16 29-Mar-16 6-Apr-16 6-Apr-16 ZENITHBANK* N0.25k Nil 1.57% H1'15 Interim 13-Aug-15 24-Aug-15 28-Aug-15 TBD ZENITHBANK* N0.25k Nil 1.6 H1'16 Interim 11-Aug-16 23-Aug-16 02-Sept-16 TBD Closure(s) & Payment(s) for the Year 12

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