GTCO Financial Results

Macro-economic Review (Nigeria) As the Russia-Ukraine war continues to drive crude oil prices northwards, Nigeria's oil production is expected to rise gradually in line with OPEC production agreement and minimal production interruptions. The recent CBN policies on FX repatriation for exporters is expected to improve FX liquidity and preserve external reserves in the medium to long-term. Yields improved in the first half of 2021 despite its downward trend in 2020. We do not expect a marked increase in yields on fixed income securities from 2021 levels despite government's plans to borrow more to finance it budget deficit. We also expect the CBN to continue to focus on alternates to improve FX inflows. 15 10 4253225050 12.00% 140 10.00% HY 120 8.00% 100 6.00% 80 4.00% 60 2.00% 40 20 0.00% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 0 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Average 91 days T/Bills yield Average 182 days T/Bills yield Average 1-year T/Bills yield Oil Production (mbpd) LHS External Reserves (US$' Bn) LHS Oi Prices (US$ per barrel) RHS Headline inflation is expected to trend upwards as campaign spending commences and supply chain challenges continues to drive increase in food inflation and general price levels. Increased government spending and positive contribution of select non-oil sectors is expected to improve economic activities and spur positive economic growth. The apex bank adopted NAFEX as the official exchange rate in the first half of 2021. This, coupled with the recent increase in oil prices and projected improvement in FX inflow into the country should result in a relatively stable naira in 2022. 15.75% 13.71% 18.17% 17.75% 500 16.63% 15.63% 400 300 200 5.01% 4.03% 3.98% 100 0.11% 0.51% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Feb. 2022 -3.62% Inflation ■GDP NAFEX CBN/INTERBANK 06

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