Presentation to Analysts Improving Lives Transforming Nigeria HALF

Presentation to Analysts Improving Lives, Transforming Nigeria HALF YEAR, 2018 RC 611238

Content 01 Outline 4 02 Overview 5 03 Key Business Drivers 7 04 Financial Review 9 05 Segment Review 16 06 Outlook 23 07 Question and Answer 31 08 Appendix 32

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

Outline KEY BUSINESS DRIVERS OVERVIEW 3 FINANCIAL REVIEW 5 QUESTIONS & ANSWERS OUTLOOK 21 7 APPENDIX 29 30 2

Overview 5

Overview of the Company • Transcorp Hilton Abuja - No. 1 hotel asset in Hotels Diversified Conglomerate with a growth agenda Power OPL 281 83% ownership 50. 01 % ownership 100 % ownership Nigeria - 670 rooms, 5 hotel • Transcorp Hotels Calabar – 132 room, 3 hotel • Hilton Ikoyi (320 room, 5 )& Hilton PH (250 room, 5 ) under development • c. 972 MW gas fired power plant • Present available capacity of 677. 8 MW • Medium term capacity target of 2500 MW • • Owner/operator of OPL 281 oil block Reserve estimates Oil - 189. 73 Mn stock tank barrel Gas – 377. 48 Bn std cubic feet Exploration commences in 2019 4

Key Business Drivers 5

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 Stabilising foreign exchange regime Improved gas supply driving generation • 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 • Capacity Utilisation grew to 81% in Q 2 2018 (Q 2 2017: 53%) while Average Generation grew to 531 MW (Q 2 2017: 311 MW • Higher occupancy due to more completed floors (Compare to Q 2 2017) NBET N 701 bn PAP Driving business growth for Hospitality • 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. 6

Financial Review 5

Result Snapshot A solid performance underpinned by sustained momentum in the growth of our businesses Group INCOME STATEMENT (N’billion) HY 2018 HY 2017 Change(%) Revenue 54. 09 34. 17 58% Gross Profit 24. 57 14. 87 65% Operating Profit 17. 35 9. 52 82% Other Income 0. 41 0. 31 32% Total Comprehensive Income 10. 97 6. 22 76% Profit Before Tax 11. 94 4. 53 164% Profit After Tax 10. 88 4. 16 161% HY 2018 FY 2017 Change (%) Total Assets 290. 26 285. 52 2% Total Equity 105. 87 95. 71 11% Total Liabilities 184. 40 189. 82 -3% Group (YTD) BALANCE SHEET (N’billion) 8

Key Ratios Annualised ROA Annualised ROE 7. 55% 4. 30% Q 2 2018 Q 2 2017 21. 58% 12. 86% Q 2 2018 Profit Margin EPS (kobo) 11. 6 20. 11% 3. 87 Q 2 2018 Q 2 2017 Q 2 2018 12. 18% Q 2 2017 9

Group - Income Statement HY 2018 N’mn HY 2017 N’mn Variation % 54, 089 34, 174 58% Cost of Sales (29, 517) (19, 300) 53% Gross profit 24, 573 14, 874 65% Administrative expenses (7, 618) (5, 664) 35% Other income/expenses 405 306 32% 17, 347 9, 521 82% 9% Revenue Operating profit 473 435 (5, 013) (4, 701) 7% (862) (722) 19% Net finance (cost)/income (5, 403) (4, 989) 8% Profit before taxation 11, 944 4, 532 164% Taxation (1, 069) (369) 190% Profit after taxation 10, 875 4, 164 161% 96 2, 056 -95% 10, 972 6, 220 76% Finance income Finance cost Foreign - exchange loss Other comprehensive income Change in value of AFS Total Comprehensive income Items Revenue Comment Increase is driven by higher generation in TPL and increase in occupancy due to release of more floors in THP Movement is driven by increase Cost of sales in cost of gas to achieve increase in generation Admin. Expenses Increase is largely due to repairs and maintenance in the ongoing upgrade Change is driven by proceeds on Other income sale of THP assets as a result of the upgrade 10

Group - Assets Year to Date Item HY 2018 FY 2017 Change Property, Plant and Equipment 146, 003 141, 836 3% 5, 068 4, 971 2% 44, 584 44, 626 0% Total Non Current Assets 195, 654 191, 433 2% Trade & Other Receivables 84, 852 83, 828 1% Cash and Cash Equivalent 4, 971 5, 598 -11% 4, 785 4, 663 3% 94, 608 94, 089 0. 55% 290, 262 285, 522 2% NON Debt and Equity Securities CURRENT Other Non Current Assets ASSETS (N’million) CURRENT Other Current Assets ASSETS (N’million) Total Current Assets Total Asset Items PPE Debt and Equity Securities Comment Increase is due to the assets being added in upgrade project in THP. Movement is due to appreciation in share price of equities Trade and other Receivables Largely due to receivables owed by NBET for sale of power in Q 2 2018 Cash Movement is due to repayment of loans and bond due 11

Group - Liabilities Item CURRENT Trade and other payables Current income tax liabilities LIABILITIE Borrowing (short term) S Advanced Deposit (N’million) Total Current Liabilities Long term borrowings LONG Deferred tax TERM Other liabilities LIABILITIES Total Long Term Liabilities (N’million) Total Liabilities Equity attributable to owners of parent EQUITIES Non controlling interest (N’million) Total Equity Net Equity and Liability HY 2018 FY 2017 Change 70, 460 1, 705 30, 931 1, 875 104, 971 69, 855 7, 159 2, 410 79, 424 184, 396 64, 847 1, 424 36, 509 1, 875 104, 656 75, 590 7, 159 2, 410 85, 159 189, 815 9% 20% -15% 0% 0% -8% 0% 0% -7% -3% 65, 313 61, 314 7% 40, 553 105, 867 290, 262 34, 394 95, 708 285, 522 18% 11% 2% Items Comment Increase is driven by payments due to Trade and gas suppliers for TPL and vendors for other payables the upgrade of THP Current income tax liabilities Increase in Income Tax provision for Q 2, largely from THP. Borrowings Reduced due to repayment of mature loans. 12

Income Statement (Qo. Q) Revenue Trend (N’Mn) 18, 406 22, 583 23, 529 26, 302 27, 787 Q 2 2017 Q 3 2017 Q 4 2017 Q 1 2018 Q 2 2018 PBT Trend (N’Mn) 2, 799 Q 2 2017 4, 509 Q 3 2017 5, 935 6, 009 Q 1 2018 Q 2 2018 3, 263 Q 4 2017 13

Segment Review 5

Segment Review – Hospitality (N’million) Q 2 2018 Q 2 2017 Variance Revenue 4, 192 3, 212 31% Cost of Sales 1, 091 854 28% Gross profit 3, 101 2, 358 32% 43 43 0% (1, 997) (1, 919) 4% 1, 147 482 138% Other Income OPEX Operating Profit Finance Income EBIT 5 43 -88% 1, 152 525 119% Items Comment Revenue Change is driven by: • Increase in occupancy due to more completed floors that were released for use • Increase in charges Cost of sales Higher in line with increase in Revenue 15

Segment Review – Hospitality Quarterly Revenue and PBT Trend (N’Mn) Revenue 3, 829 3, 349 2, 988 505 575 Q 2 2017 Q 3 2017 Quarterly Gross Profit Margin PBT 1, 983 Q 1 2018 Q 2 2017 Quarterly Product Mix(Revenue Cont. ) Rooms 64% 28% Food & Beverage 63% 8% Q 2 2017 26% 11% Q 3 2017 7% Q 4 2017 27% 73% Q 3 2017 Q 4 2017 62% 8% Q 1 2018 72% Q 1 2018 Q 2 2018 Quarterly PBT Margin Trend Others 65% 60% 33% 74% 73% 1, 152 877 Q 4 2017 74% 4, 192 3, 629 25% 13% Q 2 2018 52% 17% Q 2 2017 Q 3 2017 Q 4 2017 24% 27% Q 1 2018 Q 2 2018 16

Segment Review – Hospitality Quarterly Occupancy Rate 100% 73% 54% 67% Q 1 2018 Q 2 2018 50% 0% Q 2 2017 Q 3 2017 Q 4 2017 Quarterly Rev. PAR (N) 43, 610 Q 2 2017 59, 268 Q 3 2017 43, 699 Q 4 2017 53, 850 Q 1 2018 Rev. PAR –Revenue per available room Quarterly ADR (N) 55, 020 Q 2 2018 82, 679 Q 2 2017 81, 522 Q 3 2017 82, 948 80, 474 80, 808 Q 4 2017 Q 1 2018 Q 2 2018 ADR –Average Daily Room Rate 17

Segment Review – Power (N’million) Q 2 2018 Q 2 2017 Variance Revenue 23, 596 15, 194 55% Cost of Sales 14, 082 9, 617 46% Gross profit 9, 514 5, 577 71% OPEX (1, 489) (471) 216% EBIT 8, 025 5, 107 57% Forex Loss 577 406 42% Net Finance cost 1, 697 1, 944 -13% PBT 5, 750 2, 756 109% Items Comment Revenue Change is due to significant improvement in gas supply with relative peace in Niger/Delta Cost of sales Change is driven by increase in gas underpinning increase in Revenue OPEX Change is largely due to increase in cost that are revenue driven, as well as repairs and maintenance 18

Transcorp Power Ltd POSITION AS NIGERIA’S TOP GENCO (MWh) 255 253 AFAM VI SHIRORO 290 TRANSCORP AFAM VI SHIRORO EGBIN 473 290 EGBIN 315 244 TRANSCORP 294 477 323 JEBBA AFAM VI EGBIN TRANSCORP 364 478 AZURA 483 477 KAINJI 481 JUNE MAY AZURA - EDO IPP APRIL 19

Segment Review – Power Quarterly PBT Trend (N’Mn) 2, 756 Q 2 2017 4, 554 Q 3 2017 Gross Profit Margin 6, 113 5, 750 Q 1 2018 Q 2 2018 1, 401 Q 4 2017 43% 37% Q 2 2017 Quarterly Product Mix 64% 35% Q 2 2017 Capacity Charge 64% 35% Q 3 2017 Q 4 2017 41% 40% Q 4 2017 Q 1 2018 Q 2 2018 Quarterly PBT Margin Trend Energy Sent Out 65% 64% 35% 34% Q 1 2018 Q 3 2017 40% Q 2 2018 18% 24% Q 2 2017 Q 3 2017 27% 24% Q 1 2018 Q 2 2018 7% Q 4 2017 20

Outlook 5

Q 3 2018 Closing Expectations Business Agenda Transcorp Hilton Abuja Operations • Target effective occupancy of 70 -80% • Maintain differential level of service excellence • Leverage upside (traffic & pricing) from pre-election activities and conclusion of upgrade Hospitality Implication • Increased market coverage • New revenue sources • Market share protection Transcorp Hilton Abuja Upgrade • Conclusion of upgrade (rooms, public areas and external works) Transcorp Hotels Calabar • Maintain profitability track record • Continue cost management initiatives • Aggressive marketing aligned with competitive pricing Power OPL 281 • Target 800 MW available capacity and generated power of 600 -650 MW. Militating factors like liquidity, gas, foreign exchange and transmission are improving • Commence exploratory drilling activities • Increased revenues • Portfolio optimization • Contribution expected in 2019/20 22

Q 3 2018 Closing Expectations Business Q 2 Actual Q 3 Target ADR (N) Hospitality Power 82, 948 85, 084 Occupancy 67% 70% Rev Par (N) 55, 020 59, 559 Average (MW) Available Capacity 652 800 Average (MW) Generated Capacity 531 600 23

Our Journey So Far Transcorp was incorporated Transcorp Ughelli Power emerges preferred bidder for Ughelli Commissioning of Teragro Fruit Power Plc (UPP) in 2012 in 2004 Acquisition of NICON Hilton Hotel Abuja in 2005 Listing on the Stock Exchange in 2006 juice concentrate plant in 2012 Execution of management agreement Successful takeover of UPP in with Hilton for Transcorp Hilton Ikoyi in 2013 Calabar in 2009 Award as the Most Compliant Firm in Nigeria by the NSE in 2014 Management Agreement for Hilton Port Harcourt executed in 2014 Heirs Holdings becomes core investor 2011 Available Capacity THP: Business expansions in strategic locations Transcorp Hotels IPO in 2014 Execution of Production Sharing Contract on OPL 281 in 2014 Acquisition of Metropolitan TPL: Achieve 2500 MW Transcorp Hotels N 20 bn bond issuance in 2015 Transcorp Power commissioned GT 15 a 115 MW Gas Turbine in 2017 Commenced full Upgrade Project for OPL 281: Production of oil and gas Expand into infrastructure development Expand into Africa Transcorp Hilton Abuja in 2016 PHASE ONE 2004 - 2011 PHASE TWO 2012 - 2017 1 2 PHASE THREE 2018 - 2022 3 24

Hospitality 1. 2. 3. 4. 5. 6. Renovation and upgrade of Transcorp Hilton, Abuja Expansion of the conferencing facility within Transcorp Hilton Abuja Upgrade of Transcorp Hotel, Calabar Construction of 320 room Hilton branded hotel, Ikoyi Construction of 250 room Hilton branded hotel in Port Harcourt Expand within the hospitality industry beyond Hotels. Beyond 2027 2022 1. 2. 3. 4. Complete construction of retail and office mixed use complex, Abuja Expansion in the mid-market segment in Nigeria and beyond Construction of 200 unit apartment complex , Abuja Construction of 5, 000 seater conference and event center in Abuja 1. Be the No. 1 hospitality brand with presence across Africa 28

Power 2027 2022 1. 2. 3. Commence investment in Greenfield power plant in Nigeria Develop new IPP expansion projects in the South-South and South-East captive areas in the vicinity of TPL Make opportunistic acquisition of sub-par power plant in Nigeria 1. 2. 3. 4. Complete IPP expansion projects in the South-South and South-East Acquire interest in a Brownfield or Green field power plant in Africa Increase capacity of East African Plant to 400 MW Generate and control 30% of the electric power generated in Nigeria by 2027 Beyond 2027 1. Be the No. 1 in power in Nigeria and across Africa by 2026 with Turnover and Profit in excess of US$1. 3 Billion and US$500 million respectively 2. Contribute 25% of power consumed in Nigeria 28

Oil & Gas 1. Participate in bid rounds with a view to acquiring 2 more assets 2. Commence production on OPL 281 at a minimum of 4000 bpd Beyond 2027 2022 1. Complete Acquisition of 2 additional assets 1. Complete petrochemical plant to drive generation of US$5 Billion in revenues 2. Begin development of petrochemical plant 2. Stabilize production at OPL 281 to 10, 000 bpd 3. Begin development of fertilizer plant 4. Acquire gas plants 28

Questions & Answers 5

Appendix – Business Update 5

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 160 MW to at least 670 MW in 5 years. We surpassed this expectation 12 months ahead of schedule, generating 701 MW by November, 2017. Diversified conglomerate with a Listed Company with over growth agenda 300, 000 shareholders With a Purpose of Deeply rooted values are the 3 Es of Improving Lives, Transforming Nigeria Execution, Enterprise and Excellence 31

Transcorp Hotels Plc Projects 1. Abuja Updates Guest Floors: Floors 10, 9, 8, 7, 6, 5, 4, 3 have been handed back to operations. Floors 2 and 1 are out of inventory and under renovation, with target completion by October 2018. Guest Elevators: Replacement of all 6 guest elevators complete. External Works: Site work ongoing. Aguiyi Ironsi, Shehu Shagari and Ademola Adetokunbo gatehouses have been completed. Drivers village, car parks and general landscaping have also been substantially completed. The port cochère is due to be completed by mid-July. 2. MBC (Conference Hall) Tender completed. Value for money audit ongoing. Target is to complete construction within 24 months of commencement. 3. Transcorp Hilton Ikoyi Detailed Design completed. Foundation piling on Block A, the hotel complex, has been completed. Title documents being processed for additional plots acquired 4. Transcorp Hilton Port Harcourt Land acquisition and clearing concluded. Construction schedule to be determined following completion of Design. 32

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 SACOIL Update Drilling/Operations Update • Million Stock Tank Barrels (MMSTB), * Billion Standard Cubic Feet (BSCF) The partnership discussion with Sacoil is continuing The Drilling permit has been revalidated by DPR and approval feedback sent to NAPIMS. Rig Inspection A rig has been identified for exploratory drilling of Obote 2 x well and engagement has advanced, subject to NAPIMS approval Following NAPIMS request, the identified rig has been rescheduled for a re-inspection to certify the ‘warm-stacked’ operability & functionality and the re-negotiation of the drilling budget. 33

Contact: Mutiu Bakare mutiu. bakare@transcorpnigeria. com Instagram @transcorpnigeria @Transcorphotelsplc @transcorphotelscalabar Facebook Transcorp Nigeria Plc Transcorp Hotels Calabar Transcorp Hotels Plc Twitter @Transcorp. Plc @Transcorp. Hotels. Calaba Websites www. transcorpnigeria. com www. Transcorppower. com

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