Q3 ‘19 Presentation to Investors and Analysts

PRESENTATION OUTLINE

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7

10

14

18

OVERVIEW

Core Values

Excellence

AFRICA PRUDENTIAL IS LEADING THE TRANSFORMATIVE CHANGE IN THE REGISTRAR INDUSTRY…

The first and only listed registrar on NSE

Market Capitalisation of N 7.8 Billion

No. 1 in technology and innovation among

corporate registrars

Over 80 clients base

Over 40 years share registration

experience

Specialized in qualitative,

customer care service delivery

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1970 2013 2020-2021

2006 2017-2019

UBA Registrar Department was

created in 1970 with 17 clients

and at total Asset base of N1.4

Billion

The Company’s name changed

to Africa Prudential Registrar in

2013 and was also listed on the

NSE with a Total Asset of N18

Billion

We would continue transforming

the African continent through

innovative solutions, superior

investor relations and business

support services

The then UBA Registrar was

incorporated in 2006. Number of

clients grew by 194% to 50 and

asset base stood at N14.1 Billion

• Acquired UAC Registrar

• We changed our name to Africa

Prudential Plc.

• Commenced the redesign of our Core

Solutions (Greenpole: EasyCoop etc.)

• Commenced Digital Transformation of

company.

…ON THE BACK OF AN ENVIABLE JOURNEY

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SYNERGY WITH INDUSTRY

STAKEHOLDER• We place premium on relationship;

• We are attuned to symbiotic relationship

founded on mutual respect with industry

stakeholders, regulators and other Capital

Market Operators.

STRATEGIC LOCATION• Africa Prudential Plc is strategically located

in Lagos, Port-Harcourt and Abuja.

• As such we are within the hub of the core

activities moving the economy.

DURABLE EXPOSURE• With experience spanning three decades,

we have had faced tough times and

numerous economic turbulence.

• These experiences have helped us

anticipate and predict our environment

with precision.

EXPERIENCE OF MANAGEMENT

TEAM• Individually, each management staff

member has an average of 15 years in our

industry.

• As such we have an in-depth understanding

of our industry.

TECHNOLOGICAL SUPPORT• Our activities are geared towards infusing

technology with share registration business.

• To this end, our processes are technology-

driven for effective and efficient service

delivery.

• We currently boast of the latest state-of-the

art facility in share registration and investor

services industry.

…WE SEEK TO LEVERAGE ON OUR STRENGTH TO BECOME THE REGISTRAR OF CHOICE

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OPERATING

ENVIRONMENT

•Low number of new listings given poor performance of

the market

•Reduced clients’ activities as a result of weak corporate

performance in the light of macro challenges

•Poor investors’ confidence in the economy

•Recent regulatory mandates/ reforms constraining

current business models e.g. e- dividend mandates,

return of dividend fund, share dematerialization etc

• As technology continues to disrupt businesses the world

over, we are strategically positioning our business to take

advantage of emerging concepts in machine learning, AI

and Big data to simplify our operations

• The slow recovery of the economy impacting

performance of client companies

Declining capital market activities

Digital Technology

Regulation

Challenging macro-economic

environment

…HOWEVER THE OPERATING ENVIRONMENT REMAINS CHALLENGING

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Nigeria’s GDP grew 1.94% y-o-y in Q2 2019. However, the growth rate fell 0.62%

on a quarter-on-quarter comparison.

The inflation rate rose m-o-m by 2% in September 2019, due to the impact of

food items increase as a result of the border closure.

Nigeria recorded an average daily oil production of 1.98 million barrels per

day in the second quarter on 2019, slightly lower than the revised production of

Q1 of 1.99 million barrels per day.

11.37

11.31

11.25

11.3711.4

11.22

11.08

11.02

11.24

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19

INFLATION RATE

Both the manufacturing PMI and the non-manufacturing PMI contracted in

September by 1% points and 0.3% points respectively.

…ON THE BACK OF FRAGILE ECONOMIC OUTLOOK

58.5

57.157.4

57.7 57.857.4

57.657.9

57.7

60.1

58.4 58.558.7

58.958.6 58.7 58.8

58

55.5

56

56.5

57

57.5

58

58.5

59

59.5

60

60.5

Jan '19 Feb '19 Mar '19 Apr '19 May '19 Jun '19 Jul '19 Aug '19 Sep '19

PURCHASING MANAGER’S INDEX (PMI)

Manufacturing PMI Non-Manufacturing PMI

Q-O-Q GDP GROWTH RATE

1.98

1.84

1.94

1.91

1.99 1.98

64.671.4 73.0

64.360.5

65.1

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

1.75

1.8

1.85

1.9

1.95

2

2.05

Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19

OIL PRODUCTION VS AVERAGE CRUDE OIL PRICE ($)

Oil Production (Mbpd) Average Crude Oil Price

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FINANCIAL

REVIEW

Income StatementSept 2019 Sept 2018 Change

(‘000) (‘000)

Gross Earnings 2,895,661 3,289,888 -12%

Revenue from Contracts 1,222,866 941,348 30%

Interest Income 1,672,795 2,348,540 -29%

Operating Expenses (1,011,441) (913,112) 11%

Profit Before Tax 1,759,290 1,619,395 9%

Profit After Tax 1,502,126 1,345,658 12%

Statement of Financial PositionSept 2019 Dec 2018 Change

(‘000) (‘000)

Total Assets 20,833,034 21,271,750 -2%

Total Liability 11,783,730 12,675,161 -7%

Total Equity 9,049,304 8,596,589 5%

DEFYING THE CHALLENGING OPERATING ENVIRONMENT, WE SAW CONSIDERABLE IMPROVEMENT IN OUR NUMBERS…

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The period under review saw PBT ramp up by 9% on the back of the

company’s adoption of innovative cost management measures

Q1 2019Q2 2019

Q3 2019YTD 2019

869 1,141889

2,896

Gross Earnings ( N Millions)

Gross Earnings grew by 0.76% CAGR on a quarter-on-quarter basis, buoyed by

increase in revenue from contracts.

Q1 2019

Q2 2019

Q3 2019

YTD 2019

300

407

325

1,011

Operating Expenses (N Millions)

Operating expenses fell by 20% quarter-on-quarter on the back of our

adoption of innovative cost management measures.

…SUPPORTED BY GROWTH IN PROFITABILITY

Q1 '19 Q2 '19 Q3 '19 YTD '19

454 634 555

1,759

Profit Before Taxation (N Millions)

Q1 '19 Q2 '19 Q3 '19 YTD '19

382 524 522

1,502

Profit After Taxation (N Millions)

The period under review saw PAT increase by 12% as the company strive

to adhere to cost-effective strategies

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With our eye set on returning superior returns to shareholders, Total equity

has grown by 6.86% YTD

The company saw a 2% YTD decline in total assets due to decline in

Cash and Cash equivalent as well as the 3% YTD decline in debt

instruments at amortized cost

Dec '16 Dec '17 Dec '18 YTD '19

16.82

21.93 21.27 20.83

Total Assets (N Billions)

Dec '16 Dec '17 Dec '18 YTD '19

12.27 14.99

12.68 11.78

Total liabilities (N Billions)

Dec '16 Dec '17 Dec '18 YTD '19

6.94 6.94 8.60 9.05

Total Equity (N Billions)

Total Liabilities declined by 7% YTD as the company fulfilled

completely, its debt obligation on a borrowed facility

…UNDERLINED BY AN IMPROVING BALANCE SHEET

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OUTLOOK

The Next Frontier

Registrars Cooperatives Business EasyCoop Mart Digital Technology Business Development Customer Fulfillment Center

“Beyond the current registrar products and services being offered currently, we are transiting into

a cohesive and aligned data mining strategy that can ensure we become a full-fledged

Technology company”

WE ARE CURRENTLY LOOKING BEYOND THE TRADITIONAL REGISTRAR BUSINESS…

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REGISTRAR• Extend provision of registrar services to

minimum 3 other African countries

• Develop and deploy robust platform for the

capital marketDIGITAL TECHNOLOGY• Upscale our capital market solutions to

Enterprise standard solutions/platforms that

are competitive globally.

• Strengthen Data driven business decision via

Machine learning, AI capabilities

CUSTOMER FULFILLMENT

CENTRE

• Employee Engagements- Continuous training,

empowering, motivating and monitoring of staff

to deliver professional and quality service

across all Touch Points

EASY COOP MART• Develop dynamic sales strategies

leveraging relationship, data analytics and

market Knowledge

COOPERATIVE• Deepen market penetration of EasyCoop

solution in Nigeria and internationally

• Define detailed Sales strategies across

sectors and geographical regions of the

country

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02

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…AS CAN BE GLEANED BY OUR CORPORATE INTENT

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Gross Earnings

Revenue from Contracts

Interest Income

Operating Expenses

Profit Margin

Returns on Asset

Returns on Equity

N4.8Bn

N1.6Bn

N3.2Bn

N1.9Bn

40%

13%

21%

N2.90Bn

60%

N1.22Bn

76%

N1.67Bn

52%

GuidanceAchieved

53%

N1.01Bn

52%

130%

7%

54%

17%

54%

81%

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APPENDIX

Statement of Profit or Loss

Sep-19 Sep-18

Revenue from contracts with customers 1,222,866 941,348

Interest Income 1,672,795 2,348,540

Gross earnings 2,895,661 3,289,888

Other income 30,863 79,690

Impairment loss on goodwill - (74,042)

Personnel expenses (449,810) (456,556)

Other operating expenses (561,631) (456,556)

Depreciation of property and equipment (39,840) (38,897)

Amortisation of intangible assets (14,923) (16,493)

Profit before finance costs and tax 1,860,320 2,327,034

Finance costs (101,030) (707,639)

Profit before tax 1,759,290 1,619,395

Income tax expense (257,164) (273,737)

Profit for the period 1,502,126 1,345,658

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Sep-19 Dec-18

ASSETS

Cash and cash equivalents 2,498,453 2,559,899

Equity instruments at fair value through OCI 5,005,847 5,055,257

Debt instruments at fair value through OCI 12,064,750 12,436,863

Trade and other receivables 916,395 875,056

Inventory 2,575 3,432

Property, plant and equipment 229,669 210,975

Intangible asset 56,548 71,471

Deferred tax assets 58,797 58,797

TOTAL ASSETS 20,833,034 21,271,750

LIABILITIES

Customers’ deposits 10,992,457 10,122,131

Creditors and accruals 532,806 63,104

Borrowings - 2,042,439

Current income tax payable 258,467 447,487

TOTAL LIABILITIES 11,783,730 12,675,160

EQUITY

Share capital 1,000,000 1,000,000

Share premium 624,446 624,446

Fair value reserve 993,791 1,043,202

Retained earnings 6,431,067 5,928.941

TOTAL EQUITY 9,049,304 8,596,589

TOTAL EQUITY AND LIABILITIES 20,833,034 21,271,750

Statement of Financial Position

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