Transnational Corporation Of Nigeria Plc · NSENG:TRANSCORP
Transnational Corporation Of Nigeria — H1 2021 Earnings Presentation
47 slides from Transnational Corporation Of Nigeria's earnings presentation, September 2021
Slide 1: Presentation to Analysts & Investors
Lranscorp Presentation to Analysts & Investors www.transcorpnigeria.com
Slide 2: Table of Content
Table of Content 01 ABOUT TRANSCORP 4 02 OPERATING ENVIRONMENT 10 03 GROUP FINANCIAL PERFORMANCE 13 04 STRATEGY & OUTLOOK 16 05 CSR, MEDIA & AWARDS 37 2 www.transcorpnigeria.com
Slide 3: Disclaimer & Caution Regarding Forward Looking Statements
Disclaimer & Caution Regarding Forward Looking Statements ▪ From time to time, Transnational Corporation of Nigeria Plc (“Transcorp” or the “Group”) and its subsidiaries make written and/or oral forward-looking statements in presentations (including this presentation) and other communication. In add
Slide 4: About Transcorp
About Transcorp 4 www.transcorpnigeria.com
Slide 5: Who we are
Who we are We are a diversified conglomerate with commanding presence in the Power, Oil & Gas and Hospitality sectors Strong financial performance with an Aggressive Growth Agenda vv Deeply rooted values are the 3Es of Execution, Enterprise and Excellence Publicly traded since December 2006 with app
Slide 6: Key Operating Segments
Key Operating Segments A diversified conglomerate with commanding presence in the Power, Oil & Gas and Hospitality sectors POWER HOSPITALITY ENERGY TRANSCORP HILTON ABUJA TRANSCORP HOTEL CALABAR OPL 281 UGHELLI Single/open cycle thermal power plant Rooms - 670 Rooms - 132 Covered by a Production Sha
Slide 7: Our Investment Philosophy
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 7 www.transcorpnigeria.com
Slide 8: Key Milestones
Key Milestones ▪ 2006: Emerged ▪ Acquisition of land winner of ▪ Execution of Production Sharing ▪ Transcorp for Transcorp Hilton OPL281 Bid Contract on OPL 281. Ughelli Power Ikoyi. ▪ 2010: ▪ Execution of Management emerges ▪ TPL surpasses BPE-set Agreement for Transcorp Hilton ▪ Commencement ▪ SSP
Slide 9: Board of Directors
Board of Directors Tony O. Elumelu, CON Group Chairman Foluke Abdulrazaq Owen Omogiafo Emmanuel Nnorom Vice Chairman President/GCEO Non-Executive Director Victor Famuyibo Dr. Stanley I. Lawson Toyin Sanni Independent Non-Executive Director Non-Executive Director Non-Executive Director Ahmadu Sambo O
Slide 10: Management Team
Management Team Owen Omogiafo Dupe Olusola Vincent Ozoude Peter Ikenga Christopher Ezeafulukwe President/GCEO MD/CEO, THP MD/CEO, TAPL MD/CEO, TEL MD/CEO, TPL Mutiu Bakare Kofo Olokun-Olawoyin Kevin Brett Chuma Mgbojikwe Ifeoma Okafor-Obi Ilobekemen Idiake Group Chief Finance Group Company GM, Trans
Slide 11: Operating Environment
Operating Environment 11 www.transcorpnigeria.com
Slide 12: Operating Environment
Operating Environment GDP SHOWS CONTINUED RECOVERY IN Q2 2021 ➢ Nigeria recorded its third consecutive quarterly growth. Gross Domestic Product grew by 5.01% (year-on-year) in real terms in the second quarter 5.01% of 2021. The Q2 2021 growth rate was higher than the -6.10% growth rate recorded in Q
Slide 13: Macroeconomic Overview
Macroeconomic Overview Economic Outlook Macroeconomic indicators for 2021F-2025F GDP Growth Indicator 2021F 2022F 2023F 2024F 2025F ▪ Nigeria’s Gross Domestic Product grew by 5.01% (year-on-year) in real terms in the second Nominal GDP, $b 417 457 498 541 587 quarter of 2021. According to IMF, GDP g
Slide 14: Group Financial Performance
Group Financial Performance 14 www.transcorpnigeria.com
Slide 15: Snapshot of H1 2021 Performance
Snapshot of H1 2021 Performance 30-Jun-21 30-Jun-20 YoY Change Gross Earnings 53,260 34,956 +52% Gross Profit 23,506 14,700 +60% COMPREHENSIVE INCOME & Net Operating Income 16,335 9,406 +74% PROFIT TREND (N’million) Operating Expenses (7,498) (6,245) +20% Profit Before Tax 7,051 930 +658% Profit Aft
Slide 16: Group Performance H1 2021
Group Performance H1 2021 23.5 53.3 +60% Gross +52% Gross Profit 17.3 Earnings 37.8 35.0 Trend 14.7 Trend (N’ billion) (N’ billion) H1 '19 H1 '20 H1 '21 H1 2019 H1 2020 H1 2021 16.3 7.1 Profit Operatng +72% before Tax 5.1 +658% Profit Trend 11.2 9.5 Trend (N’ billion) (N’ billion) 0.9 H1 2019 H1 202
Slide 17: Strategy and Outlook
Strategy and Outlook 17 www.transcorpnigeria.com
Slide 18: H2 2021 Outlook
H2 2021 Outlook H2 2021 Target Business Average (MW) Available 641 Capacity Transcorp Power Limited Average Capacity 537 (MW) Generated Average (MW) Available 258 Capacity Transafam Power Limited Average Capacity (MW) 204 Generated ADR (₦) 80,440 Transcorp Hotels Plc Occupancy(%) 67 RevPAR (₦) 47,59
Slide 19: Segment Review: Power
Segment Review: Power Christopher Ezeafulukwe Vincent Ozoude MD/CEO Transcorp Power Limited MD/CEO TransAfam Power Limited
Slide 20: Sector Overview
Sector Overview ELECTRICITY GENERATION MIX (INSTALLED CAPACITY, MW) A population of more than 60% of the population or 117 196 million people million people have some level of access to grid electricity. Hydro 2,380MW 19% With a generation capacity of Given the gap in the sector and the increasing d
Slide 21: Ughelli: Performance Update
Ughelli: Performance Update ▪ Revenue increased by c.19% compared to HY 2020. This was +19% +26% +23% +43% largely driven by increase in 35,823 power generated (302MW in HY 30,175 2020 to 312MW in HY 2021) and marginal tariff adjustment. 14,404 12,300 ▪ Subsequently, HY 2021 closed 11,475 9,969 with
Slide 22: Afam: Performance Update
Afam: Performance Update Performance Analysis Target Capacity Key Highlights Available capacity ▪ Secured NERC Approval for 726Mw on grid Generation 258MW Available capacity (site conditions) licence for Afam power plc and 240Mw on grid 120MW 112MW By December 2021 Generation licence for Afam three
Slide 23: Afam: 5-Year Ramp-up Plan
Afam: 5 -Year Ramp-up Plan Gradual and sustained increase of power generation over the next five years 714MW 639MW 564MW 534MW 258MW 240MW 240MW 240MW 240MW 2021 2022 2023 2024 2025 AFAM Plc AFAM Three Fast Power 23 www.transcorpnigeria.com
Slide 24: Power: Strategic Objectives
Power: Strategic Objectives Efficient and effective stakeholder Increase existing generation management capacity Continuous engagement with key The current available capacity for TPL stakeholders to ensure we strengthen and TAPL are 539MW and 120MW our relationship with them, particularly 01 respect
Slide 25: Segment Review: Energy
Segment Review: Energy Peter Ikenga MD/CEO Transcorp Energy Limited
Slide 26: Oil and Gas
Oil and Gas Major Energy indicators $70.75 $926Mn/Year 57 fields Estimated total lost/foregone Nigeria awarded the rights to Average brent crude oil price for revenue from gas flaring per develop marginal oilfields to 50% of the month of August 2021. year. the 161 shortlisted firm after they met all
Slide 27: Oil and Gas Sector Landscape in Nigeria
Oil and Gas Sector Lanscape in Nigeria… Insurgency/pipeline Oil Spills in Niger-Delta vandalism/crude theft Half of all spills occur due to pipeline The agitations by indigenes in the and tanker accidents (50%), other Niger Delta has remained a challenge causes include sabotage (28%) and for the oil
Slide 28: OPL 281 Notional Development Plan
OPL 281 Notional Development Plan Drilling of second well Acquire new seismic data Drilling of Obote-2X Well Complete all minimum and appraisal analysis Work Programme obligations Review Field Data and Field Development Field Development Plans update Static and studies and concepts C
Slide 29: Segment Review: Hospitality
Segment Review: Hospitality Dupe Olusola MD/CEO Transcorp Hotels Plc www.transcorpnigeria.com
Slide 30: Hospitality Trend in a Post-COVID-19 World
Hospitality Trend in a Post-COVID-19 World Covid-19 has shaped the global hospitality industry for a better, sustainable, and enriching future. Exploring Own Countries Digital Media Presence ❑ With mandatory ❑ Hospitality businesses ❑ The economic quarantines, constant are asserting ❑ Investing in i
Slide 31: Hospitality Financial Highlights
Hospitality Financial highlights Improved earnings… H1 2020 H1 2021 % Growth Revenue 4,781 8,775 84% Gross Profit 3,088 6,465 109% Operating -762 2,027 138% Profit Loss Before -3,638 -111 (97%) Taxation Occupancy % 63 66 67 55 54 56 54 59 45 43 49 49 01 Jan Feb Mar Apr May Jun THP Industry 31 www.tr
Slide 32: Key Highlights: Launch of Aura by Transcorp Hotels
Key Highlights Launch of Aura by Transcorp Hotels On the 8th of July 2021, the Vice President of Nigeria, Professor Yemi Osinbajo officially launched 'Aura' by Transcorp Hotels at the Transcorp Hilton, Abuja. ❑ Aura by Transcorp Hotels is a digital platform that helps you book unique accommodation,
Slide 33: Aura Launch Pictures
Aura Launch Pictures 33 www.transcorpnigeria.com
Slide 34: Key Highlights: Workspace by Transcorp Hotels
Key Highlights Workspace by Transcorp Hotels Workspace by Transcorp Hotels is our co-working space, which we will be rolling out across key commercial city centres. We have piloted our first space at the Transcorp Hilton Abuja. It offers private offices, hot desks and an executive meeting room. The
Slide 35: Workspace by Transcorp Hotels Launch Images
Workspace by Transcorp Hotels Launch Images 35 www.transcorpnigeria.com
Slide 36: Pastry Corner & Capital Bar Remodelling
Pastry Corner & Capital Bar Remodelling 36 www.transcorpnigeria.com
Slide 37: Projects in the Pipeline
Projects in the Pipeline Transcorp Event Centre Other Projects ❑ Optimisation of our assets both in Lagos and Port-Harcourt ❑ Upgrade of Transcorp Hotels Calabar ❑ Refurbishment of our key Food & Beverage Outlet for optimal guest satisfaction ❑ The Transcorp Event Centre is part of our plans to opti
Slide 38: CSR, Media & Awards
CSR, Media & Awards 38 www.transcorpnigeria.com
Slide 39: CSR Focus Area
CSR Focus Area At the core of our purpose of improving lives and transforming Nigeria is our corporate social commitment driven through our 3E Social Impact Pillars: ENTERPRENEURSHIP & EMPOWERMENT 1. Entrepreneurship & Empowerment During the period, we continued partnerships with the Tony Elumelu Fo
Slide 40: CSR Focus Area
CSR Focus Area 2. Education We sustained operational support of Transcorp Power Staff School, in Ughelli; and recently included the Afam staff school in Okoloma-Afam which covers nursery to secondary education. To promote health and safety awareness, stakeholders were equipped with basic tips and sk
Slide 41: CSR Focus Area
CSR Focus Area We also provided a free exhibition space to a talented autistic artist to create awareness on Autism through the hotel segment of our business in Abuja during as part of creating awareness during the World Autism Awareness Month. On Children's Day, the MD/CEO of our hospitality busine
Slide 42: Media Coverage
Media Coverage In Q2 2021, Transcorp Group received over 100 media mentions across print, online and other electronic media platforms. These mentions were as a result of the official launch of Aura by Transcorp Hotels, the half year results, notable features, recognitions and other strategic media r
Slide 43: Awards & Recognition
Awards & Recognition Transcorp Hotels Calabar received nominations by the International Travel Awards in three categories: Transcorp Hotels plc received nominations at the Best City Hotel 28th Annual World Travel Awards in five (5) Best Diplomatic Hotel categories: Best Hotel & Conference Center Afr
Slide 44: Notable Mentions
Notable Mentions The President/Group CEO, Mrs. Owen Transcorp Plc was listed as one of Africa’s The President/Group CEO, Mrs. Owen Omogiafo was recognized by the Power Biggest Corporations. Omogiafo and the MD/CEO Transcorp Woman Network, as one of Hotels Plc were recognized by the *The Signature 10
Slide 45: Question and Answer
Question and Answer 45 www.transcorpnigeria.com
Slide 46: Contact
Contact: Mutiu Bakare mutiu.bakare@transcorpnigeria.com Florence Nasamu florence.nasamu@transcorpnigeria.com Oluwatobiloba Ojediran oluwatobiloba.ojediran@transcorphotelsplc.com 46 www.transcorpnigeria.com
Slide 47: Thank You
Lranscorp Thank You
Transnational Corporation of Nigeria — H1 2021 Earnings Presentation on 6ix