#1United Capital THIRD QUARTER, 2018 Presentation to Investors#2United Capital Disclaimer From time to time, United Capital Plc ("UCAP") 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 United Capital has taken all reasonable care to ensure the accuracy of the information herein, neither United Capital 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. www.unitedcapitalplcgroup.com 1#3☑United Capital Overview 3 Operating Environment 7 Financial Review Appendix 14 Outline www.unitedcapitalplcgroup.com#4☑ United Capital -INVEST- Overview www.unitedcapitalplcgroup.com 3#5United Capital 1 Investment Banking 2 UNITED CAPITAL PLC Asset Management 3 Trustees 4 Securities Securities Dealing Receiving Agent to Investment! New Issues Debt Capital Market Equity Capital Market Project Finance Mergers & Acquisition Structured Finance Collective Investment! Schemes (Mutual Funds) Portfolio Management Investment Advisory Wealth Management Bond Trusteeship Collective Schemes Private Trusts Debenture Trust Stockbrokers to Primary Issues Designated Adviser to! SMEs. www.unitedcapitalplcgroup.com#6United Capital GROSS EARNINGS N5.97 Billion Year On Year 4% Year On Year -2% OPERATING EXPENSES N2.30 Billion FUNDS UNDER MANAGEMENT N73.15 Billion Year To Date 4% Year To Date 2% RETURNS ON AVERAGE ASSETS 2.99% Q3 RESULT HIGHLIGHTS SHAREHOLDERS' FUND N18.15 Billion Year To Date 8% Year To Date 16% RETURNS ON AVERAGE EQUITY 24% www.unitedcapitalplcgroup.com 5#7United Capital Operating Environment www.unitedcapitalplcgroup.com#8United Capital Operating Environment World Economy $ Nigerian Economy Economic Indicators CPI period products Index Consumer ☐ Currency depreciation occurred in emerging markets and developing economies due to capital flow reversal and tighter financial conditions. The Global growth Momentum towards achieving the 3.9% expected growth derailed as current trade tensions and uneven expansion in global output led the IMF to cut this projection by 2 basis point to 3.7%. The UK government confirmed that the UK would be leaving the EU on March 29, 2019, with the EU making concessions and agreeing to accept among other things, a free trade deal which does not include the free movement of EU citizens. □ Foreign exchange inflow into the economy fell by 38.34% to $6billion in July, 2018 from $9.73billion in June, 2018. Crude oil price remained above the budget benchmark of $51 averaging $73.04 in Q3 2018. Growth projection for the economy was revised upward from 2.1% to 2.9%. This growth will be largely driven by the expected increase in oil production to 2.3 million barrels per day. ☐ The CBN monthly CPI report showed that inflation for the month of September 2018 rose by 5 basis point to 11.28% as against 11.23% in August, 2018. The NSE ASI decreased by 14.99% to 32,540.17 as at September 21, 2018 as against 38,278.55, at the end of June 2018. Broad Money Supply grew by 2.98% in August, 2018, annualized to 4.47%. This was however below the provisional benchmark of 10.48% for 2018. This growth was largely driven by growth in Net Foreign Assets to 18.63%. 7 www.unitedcapitalplcgroup.com#9United Capital Financial Review www.unitedcapitalplcgroup.com#10United Capital Financial Review Group Q3 2018 Q3 2017 Change(%) Gross Earnings 5.97 6.24 -4% Operating Income 4.85 5.48 -11% INCOME STATEMENT (N'billion) Other Income 1.12 0.76 47% Profit Before Tax 3.67 3.90 -6% Profit After Tax 3.08 3.27 -6% Group (YTD) Q3 2018 FY 2017 Change (%) Total Assets 138.70 136.60 1.54% BALANCE SHEET Total Equity 18.15 16.77 8.23% (N'billion) Total Liabilities 120.55 119.83 0.61% www.unitedcapitalplcgroup.com#11United Capital 5.69 4.09 Gross Earnings N'Billion CAGR 13% Financial Review 6.24 5.97 Q3 2015 Q3 2016 Q3 2017 Q3 2018 United Capital Plc, over the past 4 years grew gross earnings by 13% CAGR. Other Income grew impressively by 47% in Q3 2018 to N1.12billion when compared with NO.76billion Q3 2017. The change was largely due to increase in dividend from equity investment and earnings on assets. Investment income, whilst still being the highest contributor to Net Operating income at 55% in Q3 2018, declined from 66% in Q3 2017. Net trading Income rose by 31% YoY to NO.12Billion in Q3 2018 as against N0.09 Billlion in Q3 2017. This was largely provoked by increase in financial assets for trading. www.unitedcapitalplcgroup.com 10#12United Capital Profit Before Tax (N'billion) CAGR 15% 3.96 2.4 Financial Review Profit After Tax (N'billion) CAGR 17% 3.89 3.17 3.67 1.91 3.27 3.08 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2015 Q3 2016 Q3 2017 Q3 2018 The Company grew Profit Before Tax by 15% CAGR over the past 4 years. However, comparing YoY, PBT in Q3 2018 was N3.67billion as against N3.89 billion in Q3 2017, representing a 6% decline. ✰ Profit After Tax saw a 6% dip in Q3 2018 at N3.08billion compared to N3.27billion in Q3 2017. However, looking at the past 4 years, the Company's PAT has grown by 17% CAGR. www.unitedcapitalplcgroup.com 11#13United Capital 47% Profit Margin % 56% Financial Review Operating expenses (N'billion) 52% 51% 1.77 1.73 CAGR 9% 2.34 2.3 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Profit margin for Q3 2018 stood at 51.64% as against 52.47% recorded in Q3 2017. This slight decline in Profit Margin can be attributed to the decrease in revenue due to the drop in interest income compelled primarily by declining yield environment in 2018 when compared with the corresponding period last year. ✰ Operating Expenses fell 2% to N2.30billion in Q3 2018 as against N2.34billion in Q3 2017. This was majorly due to an 11% fall in other operating expenses. However, the operating expenses grew 9% CAGR www.unitedcapitalplcgroup.com 12#14☑United Capital จ 0 0 0 0 Appendix อ 0 0 www.unitedcapitalplcgroup.com 13#15United Capital 1 2 Continuous Growth 3 2000-2013 Started out as UBA Global Markets, a division in UBA PLC. . • Spun-Off UBA PLC to become UBA Capital. Incorporated March 14, 2002. • Listed on the NSE, January 11, 2013. • 2014-2016 Changed name from UBA Capital to United Capital in December 2014. • Lead Issuing House of one of the largest Corporate bond, for Flour Mills of Nigeria- $188 million • Best Banking and Finance Firm (2015) by Corporate Live Wire. • As at 30th June, 2016, the group had 6 billion shares in issue with a market capitalization of $48.5 million. • 2017-2018 Over 14,500 Subscriber to various research articles. • Total Shareholders as at the end of 2017 was 265,375. • Upgraded Credit Rating by Agusto & Co. (A-) Leveraging on UBA PLC's reach we are currently present in over 15 African Countries. www.unitedcapitalplcgroup.com 14#16United Capital Visionscape Sanitation Solutions Why we are the intelligent choice Chevron N20.32 Billion Municipality Waste Management Limited Bond 2017 Join Issuing House Federal Republic of Nigeria. US$300 Million Diaspora Bond Issue by the Federal government of Nigeria 2017 Financial Adviser/Local Bookrunner US$780 Million on the NNPC/Chevron Joint Venture 2017 Joint Financial Adviser UBAN Africa's global bank LAPO Microfinance Bank Unpoving LAGOS STATE GOVERNMENT N100 million Lagos State Government Bond Issue 2017 Joint Trustees US$500 Million UBA Eurobond 2017 Financial Adviser N3.15 million Issuance of Series 1 Bond 2017 Joint Trustees www.unitedcapitalplcgroup.com 15#17United Capital Why we are the intelligent choice ORION OIL LTD US$250 million Prepayment Facility 2015 Structuring Bank FMN Flour Mills of Nigeria ple US$188 million Bond Issue 2014 Lead Issuing House transcorp Fee: Undisclosed. The Merger of Transcorp Ughelli and Ughelli Power Plant 2015 Financial Adviser Fidelity US$153 million Fidelity Bank Bond 2015 Joint Trustees 2 Billion units of United Capital Wealth for Women Fund & 100,000 units of United Capital EuroBond 2017 nation Cross River US$40.8 million Cross River State Bond 2015 Joint Trustees www.unitedcapitalplcgroup.com 16#18☑United Capital IT STARTS WITH A CONVERSATION. Secure your tomorrow today using comprehensive financial planning with Private Wealth Management at united Capital Speak to a United Capital Wealth Advisor Adetola: 08087186969, Damola: 07068086832 Or [email protected] เจ้าพระยาปรับเรส2 United Capital Plc. 12th Floor, UBA House, 57, Marina, Lagos, Nigeria. www.unitedcapitalplcgroup.com 17#19☑United Capital Choose a product Open an account 芹 Receive Returns Fund the account ☑InvestNow.ng www.unitedcapitalplcgroup.com 18#20Contact Investor Relations Email: [email protected] Tel: +234-1-2807596 www.unitedcapitalplcgroup.com 19