TRANSNATIONAL CORPORATION OF NIGERIA PLC REPORT …

1 FOR THE YEAR ENDED 31 DECEMBER 2018 TRANSNATIONAL CORPORATION OF NIGERIA PLCREPORT OF THE DIRECTORSANDCONSOLIDATED AND SEPARATE AUDITED financial STATEMENTSTRANSNATIONAL CORPORATION OF NIGERIA PLCFOR THE YEAR ENDED 31 DECEMBER 2018 ContentPage Corporate Information3 REPORT of the Directors4 Statement of Directors' Responsibilities7 REPORT of Audit Committee8 Independent Auditors Report9 Audited financial StatementsConsolidated and Separate Statement of Pofit or Loss and Other Comprehensive Income14 Consolidated and Separate Statement of financial Position15 Consolidated and Separate Statement of Changes in Equity16 Consolidated and Separate Statement of Cash Flows18 Notes to the financial Statements19 Other National DisclosuresConsolidated and Separate Statement of Value Added93 Consolidated and Separate Five Year financial Summary94 ANNUAL REPORT AND financial STATEMENTSTRANSNATIONAL CORPORATION OF NIGERIA PLCCORPORATE INFORMATIONFOR THE YEAR ENDED 31 DECEMBER 2018 Directors:Mr.

2 Tony O. Elumelu, CONC hairmanMr. Valentine OzigboPresident/CEOA ppointed1 January, 2019Mr. Emmanuel N. NnoromDr. Stanley Inye LawsonMrs. Owen Diana OmogiafoAppointed/(Resigned)1 July, 2018 /(31 December, 2018)Mr. Christopher EzeafulukweAppointed1 July, 2018Ms. Obi IbekweAppointed30 October, 2018 Mrs. Toyin SanniAppointed30 October, 2018Mr. Adim JibunohRetired31 December, 2018 Olorogun O'tega Emerhor, OONR etired30 April, 2018Mr. Kayode FasolaResigned31 October, 2018 Alhaji Abdulqadir Jeli BelloResigned31 October, 2018 Secretary:Helen Iwuchukwu38, Glover RoadIkoyiLagos, office:38, Glover RoadIkoyiLagos, number:RC 611238 Registrars:Africa Prudential Plc220B Ikorodu RoadPalmgrove, bankers:United Bank for Africa PlcFirst Bank of NIGERIA LimitedAuditors.

3 Ernst & Young10th & 13th Floors, UBA House57, Marina, Lagos CORPORATION OF NIGERIA PLCREPORT OF THE DIRECTORSFOR THE YEAR ENDED 31 DECEMBER 2018 LEGAL FORMPRINCIPAL ACTIVITIESRESULT FOR THE YEAR2018201720182017N'000N'000N'000N'000 Revenue104,162,785 80,284,959 8,899,967 5,121,992 =====================================Gro ss profit48,252,421 36,424,307 8,899,967 5,121,992 ====================================Prof it before tax22,402,087 12,305,547 5,705,517 2,567,737 Tax (1,775,420) (1,698,271) (1,094,518) (698,533) ---------------------------------------- ----------------------------Profit after tax20,626,667 10,607,276 4,610,999 1,869,204 ====================================2018 201720182017N'000N'000N'000N'000 Profit for the year attributable to.

4 Equity holders of the parent9,314,010 4,754,765 4,610,999 1,869,204 Non-controlling interests11,312,657 5,852,511 - - ---------------------------------------- -------------------------Profit after tax20,626,667 10,607,276 4,610,999 1,869,204 ====================================Grou pCompanyTheDirectorspresenttheirannualre portontheaffairsofTransnationalCorporati onofNigeriaPlc( theCompany )togetherwiththeauditedfinancialstatemen tsfortheyearended31 December2018, REPORT discloses the state of the Company and the ,CapC20,LawsoftheFederationofNigeria, (IPO), controlling interests in the following companies, referred to as portfolio companies.

5 TheCompany sbusinessistheinvestmentinandoperationof portfoliocompaniesinthehospitality,power , ' presented Transcorp Hotels Plc - Transcorp Power Limited - Transcorp Hotels Calabar Limited- Transcorp Energy Limited - Transcorp OPL 281 NIGERIA Limited - Teragro Commodities Limited- Capital Leisure and Hospitality Limited- Transcorp Properties Limited- Transcorp Hotels Ikoyi Limited- Transcorp Hotels Port Harcourt Limited4 TRANSNATIONAL CORPORATION OF NIGERIA PLCREPORT OF THE DIRECTORSFOR THE YEAR ENDED 31 DECEMBER 2018 RESULT FOR THE YEAR CONTINUEDD irectorsDirectIndirectTotalMr. Tony O. Elumelu, CON273,104,041 567,528,915 840,632,956 Mr.

6 Emmanuel N. Nnorom- 11,403,487 11,403,487 Mr. Valentine Ozigbo10,859,126 - 10,859,126 Dr. Stanley Inye Lawson122,790,102 - 122,790,102 Mrs. Toyin Sanni31,506 - 31,506 Ms. Obi Ibekwe- - - Mrs. Owen Diana Omogiafo7,634,188 - 7,634,188 Mr. Christopher Ezeafulukwe5,000,000 - 5,000,000 DIRECTORS INTERESTS IN CONTRACTSALTERNATE DIRECTORSHIPSHAREHOLDING ANALYSIS & STRUCTURER angeNo.

7 Of HoldersHolders %UnitsUnit %1-9994,559 1,754,529 1000- 9,999210,595 535,893,658 10,000 - 99,99955,795 1,324,886,381 100,000 - 999,99910,034 2,506,253,486 1,000,000 - 9,999,9991,554 3,423,881,934 10,000,000 - 99,999,999141 3,469,682,305 100,000,000 - 999,999,99944 11,891,341,157 Above 1,000,000,00010 17,494,296,842 ---------------------------------------- ---Total282,732 100 40,647,990,292 100 =========================HOLDER TYPEHOLDER COUNTHOLDINGSI ndividual278,690 16,536,044,472 Government17 2.

8 839,148 Corporate2,955 22,878,843,957 Pension5 1,098,095,912 Joint1,060 59,174,892 Foreign5 72,991,911 ---------------------------Total282,732 40,647,990,292 =================SUBSTANTIAL INTEREST IN SHARESN oneofthedirectorsnotifiedtheCompanyofany interestincontractsforthepurposeofsectio n277oftheCompaniesandAlliedMattersAct, was no alternate directorship during the year under at 31 December 2018, only UBA Nominees Limited, held 5% or more of the issued share capital of the Company.

9 The shareholding analysis and structure of the Company as at 31 December 2018 were as follows:5 TRANSNATIONAL CORPORATION OF NIGERIA PLCREPORT OF THE DIRECTORSFOR THE YEAR ENDED 31 DECEMBER 2018 SHAREHOLDING WITH 5% AND ABOVE AS AT 31 DECEMBER 2018 FULL NAMEHOLDINGS%UBA Nominees Limited - Trading3,762,647,995 PLANT & EQUIPMENTSTATEMENT ON RISK MANANGEMENT POLICY & PRACTICESPROHIBITION OF INSIDER TRADING CODE OF CONDUCT FOR DIRECTORS & STAFFCOMPLAINT MANAGEMENT PROCEDUREDONATIONS AND GIFTAUDITORSBy order of the BoardHelen IwuchukwuGroup Company SecretaryFRC/2015/NBA/0000001271613 February 2019 ItcoverstheFrameworkprinciplessuchasRisk ManagementObjectives,RiskManagementStrat egies.

10 RiskManagementPhilosophyandCulture,RiskA ppetiteandRiskOversightaswellastheproces sesincludingriskidentification,analysis, management,monitoring, (FIC) meeting and key risks noted are escalated to the Board with recommendations from the risk management systems and practices at the Company are effective and 'sauditorsinaccordancewithSection357(2)o ftheCompaniesandAlliedMattersAct,CAPC20, Lawsof the Federation of NIGERIA 2004. InlinewiththeSecuritiesandExchangeCommis sion(SEC)rule,adedicatedprocessandfeedba ckmechanismforthemanagement and resolution of shareholders complaints is in place and can also be accessed on the Company s relating to changes in the fixed assets of the Company is given in Note 17 to the financial , sound risk management practices across the Transcorp ,Staff,Contractors,Suppliers,Consultants andbusinesspartnersinareasofHealthandSaf ety,Anti-bribery,ethicalbehaviour,Moneyl aundering,SecuritiesTradingPolicy,Inside rsdealings,Discrimination,Drugs,Alcohola ndSubstanceabuseortrafficking,Conflictof Interestdisclosures,Anti-Trust.