Transnational Corporation Of Nigeria Plc · NSENG:TRANSCORP
Transnational Corporation Of Nigeria — FY2018 Earnings Presentation
36 slides from Transnational Corporation Of Nigeria's earnings presentation, 2019
Slide 1: Presentation to Investors and Analysts
Presentation to Investors and Analysts FULL YEAR 2018
Slide 2: Disclaimer
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- look
Slide 3: OVERVIEW OPERATING ENVIRONMENT KEY BUSINESS DRIVERS
04 OVERVIEW 09 OPERATING ENVIRONMENT 12 KEY BUSINESS DRIVERS 15 FINANCIAL REVIEW 30 OUTLOOK 33 QUESTIONS & ANSWERS 34 APPENDIX
Slide 4: Overview
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Slide 5: About Transcorp With an Aggressive Growth Agenda
About Transcorp Diversified conglomerate Listed With an Aggressive Company with about Growth Agenda 290,000 Shareholders with strong presence in the Power, Energy & Hospitality sectors. With a Purpose Deeply rooted values are of the 3Es of Improving Execution, Lives, Transforming Enterprise and Nige
Slide 6: The Group at a Glance
The Group at a Glance… • Transcorp Hilton Abuja - No. 1 hotel asset in Nigeria - 670 rooms, 5 hotel • Transcorp Hotels Calabar – 132 room, Hotels 3 hotel 83% Ownership Transcorp is • c.972MW installed capacity gas fired power plant committed to • Present available capacity of 596MW to Power increa
Slide 7: Our Journey So Far
Our Journey So Far ▪ Transcorp Ughelli Power emerges ▪ Transcorp Hotels IPO in 2014 ▪ TPL: ▪ Transcorp was preferred bidder for Ughelli Power ▪ To expand customer base incorporated in 2004 Plc (UPP) in 2012. ▪ Award as the Most Compliant ▪ To deepen our play in Firm in Nigeria by the NSE in existing
Slide 8: Our Value Proposition
Our Value Proposition Through our strategic businesses, we focus on creating long term shareholder returns and socio-economic impact. Sound Corporate Governance. Strong Service Delivery. Growth Capacity. Capital Appreciation. Power Hotels With sight set on Powering Nigeria Today, Tomorrow and in the
Slide 9: Operating Environment
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Slide 10: Local Economy Review
Local Economy Review Gross Domestic Product ▪ GDP expanded by 1.95% Y-o-Y in Q1 2018, contracting however to 1.5% in Q2 2018. Against the Quarterly GDP Trend back of a 2.8% expansion in non-oil sector, GDP 2.4% further expanded to 1.81% in Q3 2018, the upward 1.95% 1.81% trajectory of the nation’s e
Slide 11: Local Economy Review
Local Economy Review Inflation Rate Exchange Rate ▪ The rate of inflation peaked at 11.44% as at year-end, it ▪ The I&E window established by CBN continues to however declined by 0.07% points to 11.37% by provide liquidity and exchange rate convergence January of 2019. with parallel market. ▪ The CB
Slide 12: Key Drivers
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Slide 13: Key Trends Driving Our Business
Key Trends Driving Our Business • Improved access to Forex as a means for debt service and rehabilitation of turbines. • Reduced Forex loss from financing activities, Stable Foreign as the group witnessed a 30% year-on-year Exchange reduction in such loss. NBET N701Bn Growing • The availability of m
Slide 14: Key Trends Driving Our Business
Key Trends Driving Our Business Power Hospitality ▪ The Multi-Year Tariff Order (MYTO), there is need for an ▪ Hospitality and Tourism continues to contribute upward review as the current MYTO does not reflect the positively to the GDP as the sector is expected to actual cost that allows for profita
Slide 15: Financial Review
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Slide 16: Result Snapshot
Result Snapshot ….we delivered an exemplary result of 94% growth in Profit After Tax Group FY 2018 FY 2017 Change(%) Revenue 104,163 80,285 30% Gross Profit 48,252 36,424 32% INCOME STATEMENT Operating Profit 34,649 26,032 33% (N’billion) Profit Before Tax 22,402 12,306 82% Profit After Tax 20,627 1
Slide 17: Key Ratios
Key Ratios Returns on Average Assets Returns on Average Equity 7.08% 20.52% 4.10% 11.65% 1% 2% FY '15 FY '16 FY '17 FY '18 FY '15 FY '16 FY '17 FY '18 -1% -1% Price-to-Book Debt-to-Equity 0.76 0.8 1.98 1.82 0.66 1.69 0.52 1.32 FY '15 FY '16 FY '17 FY '18 FY '15 FY '16 FY '17 FY '18 www.transcorpnige
Slide 18: Income Statement (YoY)
Income Statement (YoY) Revenue Trend (N’Mn) 104,163 80,285 59,425 41,338 40,754 FY '14 FY '15 FY '16 FY '17 FY '18 PAT Trend (N’Mn) 20,627 10,607 3,304 2,032 FY '14 FY '15 FY '16 FY '17 FY '18 (1,127) www.transcorpnigeria.com 18
Slide 19: Group - Income Statement
Group - Income Statement Items FY 2018 FY 2017 Variance Items Comment N’mn N’mn % Increase in revenue Revenue 104,163 80,285 30% continues to be led by a Cost of Sales (55,910) (43,861) 27% Revenue growth in earnings from the Gross profit 48,252 36,424 32% hospitality and power business. Administrat
Slide 20: Group – Assets & Liabilities
Group – Assets & Liabilities Item FY 2018 (Mn) FY 2017 (Mn) Change Items Comments NON Property, Plant and 154,566 141,836 9% CURRENT Equipment Increase was due to assets being added ASSETS PPE Other Non Current Assets 49,977 49,597 1% to upgrade projects in Abuja. (N’million) Total Non Current Asset
Slide 21: Segment Review
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Slide 22: Segment Review
Segment Review Revenue Contribution by Segment TRANSCORP POWER LIMITED (TPL) B'n 17% 2018 2017 17% Revenue 86.74 66.44 Cost of Sales 49.84 40.10 83% Gross Profit 36.90 26.34 83% PBT 20.75 10.84 PAT 21.40 12.72 2018 TPL THP 2017 Total Asset 149.73 149.40 TPL THP Total Liabilities 127.79 131.91 PBT Co
Slide 23: Segment Review
Segment Review TRANSCORP POWER LIMITED (TPL) 2018 2017 Profit Margin 42.5% 39.6% PBT Margin 23.9% 16.3% PAT Margin 24.7% 19.1% RoaA 13.9% 9.6% RoaE 105.3% 82.3% TRANSCORP HOTELS PLC (THP) 2018 2017 Profit Margin 74.0% 72.8% PBT Margin 28.9% 26.6% PAT Margin 21.3% 19.4% RoaA 3.5% 2.8% RoaE 6.6% 4.9%
Slide 24: Segment Review – Hospitality
Segment Review – Hospitality (N’million) FY 2018 FY 2017 Variance Items Comment Revenue 13,843 This increased on the back 17,425 26% of the appreciation in Cost of Sales (4,536) (3,763) 21% Revenue per available room, Administrative Expenses (8,431) (7,796) 8% More so the average Revenue occupancy r
Slide 25: Segment Review – Hospitality
Segment Review – Hospitality Revenue Vs PBT 17.43 13.84 5.04 3.68 FY '17 FY '18 Revenue PBT Gross Profit Margin PAT Margin 21% 74% 19% 73% FY '17 FY '18 FY '17 FY '18 www.transcorpnigeria.com 25
Slide 26: Segment Review – Hospitality
Segment Review – Hospitality Monthly Occupancy Rate % 76% 76% 75% 80% 70% 69% 69% 64% 65% 66% 66% 55% 57% 60% 40% 20% 0% Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Quarterly Average Daily Rate (N) Quarterly Average Revenue Per Available Room(N) 86,000 85,084
Slide 27: Segment Review – Power
Segment Review – Power (N’million) FY 2018 FY 2017 Variance Items Comment Revenue 86,738 66,441 31% Change is due to significant Cost of Sales (49,838) (40,098) 24% Revenue improvement in gas supply with relative peace in Niger/Delta Administrative Expenses (5,875) (3,330) 76% Other Operating Income
Slide 28: Segment Review – Power
Segment Review – Power Monthly Capacity Utilization % 100% 81% 82% 81% 78% 80% 80% 79% 78% 80% 75% 80% 69% 62% 60% 40% 20% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Quarterly Average Available Capacity and PAT Margin Generated Capacity 30% 800 650 652 24% 644 25% 531 579 600 514 469 19% 433
Slide 29: Segment Review – Power
Segment Review – Power POSITION AS NIGERIA’S TOP GENCO (MWh) Q1 2018 Q2 2018 468 436 500 600 483 477 400 342 500 291 272 311 300 400 259 300 228 200 200 100 100 0 0 Q3 2018 Q4 2018 458 429 448 500 500 399 394 384 361 366 400 400 277 251 300 300 200 200 100 100 0 0 www.transcorpnigeria.com 29
Slide 30: Outlook
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Slide 31: 2019 Outlook
2019 Outlook Business Agenda Implication Transcorp Hilton Abuja Operations • Increased market coverage • Target effective higher occupancy rate • Maintain differential level of service excellence • New revenue sources • Leverage upside (traffic & pricing) from pre-election activities and conclusion
Slide 32: 2019 Outlook Cont’d
2019 Outlook Cont’d Business 2018 Actual 2019 Target ADR (N) 82,835 82,541 Hospitality Occupancy(%) 67 69 Rev Par (N) 55,800 56,953 Average (MW) 631 632 Available Capacity Power Average (MW) 487 538 Generated Capacity www.transcorpnigeria.com 32
Slide 33: Questions?
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Slide 34: Appendix
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Slide 35: Contact
Contact: Mutiu Bakare mutiu.bakare@transcorpnigeria.com Florence Nasamu florence.nasamu@transcorpnigeria.com www.transcorpnigeria.com www.transcorpnigeria.com
Slide 36: Thank You
Thank You www.transcorpnigeria.com
Transnational Corporation of Nigeria — FY2018 Earnings Presentation on 6ix