ACCESS BANK PLC 2015 Rights Issue February 2015 Agenda Overview of Access Bank Rights Issue Rationale © 2015 ACCESS BANK PLC 1 Recognised as a leading commercial bank in Nigeria with an extensive distribution network in Sub Saharan Africa and the UK Access Bank Plc. is licensed by Awards & Recognition Listings Nigerian Stock Exchange London Stock Exchange (Eurobond) the Central Bank of Nigeria as an International Bank Channels 366 1,042 11,846 Branches ATMs POS Subsidiaries Number of Employees Capital Adequacy Ratio 20% 1. 7 Banking Subsidiaries 3,192 Professional staff Best Credit Card Product Award 2014 Risk Management Award 2013 African Banker’s Award 2013 M&A Winner in Africa 2012 FT/IFC Sustainable Bank of the Year 2011 Issuer Credit Rating 1 AA- A+ A- A+ Quoted ratings represent the Bank’s Long Term Local Ratings Long Term Counterparty Ratings are as follows: S & P: BBFitch: B © 2015 ACCESS BANK PLC 2 Our growth story reflects our commitment to execute our strategy and consistent delivery on our promise… 2002 2007 2012 65th out of 89 banks 9th out of 25 banks 5th out of 21 banks 90,000 customers 600,000 customers 6.5 million customers ROE: 25% ROE:18% CIR: 62% CIR: 61% CIR: 93% Gross Income: ₦27.9bn Gross Income: ₦208.3bn Gross Income: ₦2.6bn Loans: ₦108bn Loans: ₦609bn Loans: ₦4.2bn Deposits: ₦205bn Deposits: ₦1,201bn Assets: ₦409bn Assets: ₦1,745bn Risk Ratings: ‒ S&P: BBB ‒ Fitch: BBB ‒ Agusto: A- Risk Ratings: ‒ S&P: AA‒ Fitch: A‒ Agusto: A- ROE: -0.9% Deposits: ₦6.5bn Assets: ₦11.3bn No Risk Rating Market Cap: ₦25bn Number of Branches: 32 Market Cap: ₦342bn Number of Branches:118 2nd 5-Year Plan 1st 5-Year Plan • ₦15 billion Public Offer in 2004 • Issued ₦11.9 billion of Local Bond in 2006 © 2014 ACCESS BANK PLC Market Cap: ₦241bn Number of Branches: 349 • ₦136 billion Public Offer in 2007 • Issued USD350 million Eurobond in 2012 3 Strong financial performance reflecting our well executed strategy (1) Strong Loan Growth Solid Funding Base CAGR’10-9m14 25.7% CAGR’10-9m14 34.6% 92% 71% 52% 59% 50% 77% 80% 1,102 1,201 786 2010 576 82% 61% 1,056 448 84% 1,331 1,479 604 485 2011 2012 Net loans (N bn) 2013 9m'14 2010 Net loans / Deposits 110% 2011 2012 Customer deposits (N bn) 2013 9m'14 Deposits / Total Liabilities Compelling Shareholder Returns Improving Asset Quality 122% 114% 18.7% 18.2% 85% 8.6% 4.8% 9.0% 164 5.0% 2010 2011 NPL ratio © 2015 ACCESS BANK PLC Asset quality remained strong with the NPL ratio continuing its steady decline Consistent improvement in shareholders returns as ROE increased from 4.8% in 2010 to 18.7% in Q3’14 14.9% 60% 11.0% The Bank maintained strong loan growth of 33% YoY in 9m 2014 – the highest loan growth of its peers in the period 2012 2.7% 2.5% 2013 9m'14 NPL coverage 2010 192 2011 241 244 265 2012 2013 9m'14 Shareholders' equity Solid funding base with customers deposits accounting for 82% of total liabilities ROAE 4 Strong financial performance reflecting our well executed strategy (2) Increasing Margins High Share of Non-Interest Income 12.3% 11% 10.7% 7.7% 11.7% 13.2% 7.5% 6.9% 6.6% 44.2% 43.9% 41.1% 39.5% 32.4% 5.5% 5% 4.9% 4.5% 4% FY'12 H1'13 FY'13 H1'14 Cost of Fund Asset Yield 4.9% 9M'14 FY'12 NIM H1'13 FY'13 H1'14 9M'14 The Bank maintains one of the highest share of non-interest revenues in the sector Non-Interest Income / Operating Income Compelling Returns Steadily Improving Efficiency 68% 66.4% 3% 2.7% 18% 17% 2.2% 3% 2.9% 18% 18.7% H1'14 9M'14 15.5% 63.1% 61.2% 61% FY'12 FY'12 H1'13 FY'13 H1'14 Cost-to-Income Ratio © 2015 ACCESS BANK PLC H1'13 FY'13 Strong loan growth has driven a significant increase in the Bank’s asset yield and net interest margin Efficiency has steadily improved since FY’13, with a Cost-to-Income Ratio (CIR) of 61.2% in 9M’14 9M'14 ROAE ROAA 5 Our corporate history is a testament to our disciplined capital planning With a vision of becoming one of the most respected banks in Africa, Access Bank has grown to be a Top Five Bank in Nigeria • Raised ₦15bn in public issues to meet capital requirements • Awarded IFC Sustainable • Raised ₦136bn in public offerings including Bank of the Year a highly successful and over-subscribed GDR • Successful acquisition of • Acquisition of Capital and Marina bank Intercontinental Bank • Access Bank UK is established • FMO becomes • Ranked fourth largest largest institutional investor bank as a result of through conversion of $15m the acquisition term loan 2002 2005 2006 2007 2011 • Passed CBN’s Special Audit on Governance, Liquidity and Capital Adequacy • Appointment of Aigboje Aig-Imoukede as MD/CEO and Herbert Wigwe as DMD • Embarked on a 5 year transformation agenda 2009 • Local bond issue of ₦11.9bn • $150million loan stock from Development Finance partners 1st 5-Year Rolling Plan 2012 • Credit rating 1: S&P: AAFitch: AAgusto: A+ GCR: A+ 2013 2014 2018 • Appointment of Herbert Wigwe to succeed retiring • Merger with Intercontinental MD/CEO and appointment of Completed Obinna Nwosu as DMD • Post-merger integration • Issued USD400 million • Divestment from Nonsubordinated note Banking Subsidiaries • Transition into large diversified • Designated as SiFi by CBN banking institution • $350mn Eurobond 2nd 5-Year Rolling Plan 3rd 5-Year Rolling Plan Source: Bank financial reports and published unaudited management presentations. (1) Long term local rating © 2015 ACCESS BANK PLC 6 Agenda Overview of Access Bank Rights Issue Rationale © 2015 ACCESS BANK PLC 7 Transaction Summary Issuer Access Bank PLC Use of Proceeds The funds raised will be used to upgrade the Bank’s information technology platforms and branch network to enable it provide better service and further improve the working environment as well as improve its distribution channel infrastructure to enable it provide more efficient services to clients. The funds will also be used to augment the Bank’s working capital and support risk assets growth Now being issued Offer size of 7,627,639,636 (Seven billion, Six hundred and Twenty Seven million, Six Hundred and Thirty Nine thousand, Six hundred and Thirty Six) ordinary shares of 50 kobo each Issue Size N52.6 billion Method of Issue By way of rights to existing shareholders Provisional Allotment One (1) ordinary share for every three (3) fully paid ordinary shares held by shareholders of the Bank. Issue Price per Share N6.90 Payment In full acceptance Opening Date January 26, 2015 Closing Date March 4, 2015 Underwriting At the instance of the issuer, this issue is not underwritten © 2015 ACCESS BANK PLC 8 With significant market opportunities in sight, our focused growth strategy would require us to proactively enhance our capital Enhance Capital Strength Comprehensively strengthening capital ratios for the longer term Sufficient headroom to grow the business and deliver sustainable growth in targeted sectors Pursue growth in asset book to drive profitability while maintaining the Bank’s moderate risk appetite Digitisation and Improvement of the retail channel network pivotal to customer acquisition and retention Build a strong buffer for regulatory requirements Access Bank’s Growth Strategy • Become the World’s Most Respected African Bank • Achieve top 3 position by all financial metrics • Outstanding customer experience across all segments • Deployment of analytics and behavioral segmentation to prioritize customer needs • Sustained and disciplined growth in chosen markets • Expanded and diversified retail deposit base • Continued extension of our Value Chain Strategy leveraging on a strong technology platform • Global brand recognition for excellence Delivering superior shareholder value requires the enhancement of our Tier 1 Capital © 2014 ACCESS BANK PLC 9 Strong analysts endorsement with an average target price of 1.1x book value Relative Share Performance1 Key Points Commentary Market prices of securities on The Nigerian Stock Exchange have dipped significantly and in many cases do not necessarily represent the “true value” of such listed companies 120 ‒ 100 80 Global Macro concerns regarding oil trading dynamics and domestic currency volatility have led to significant capital flight from the equities markets Access Bank’s share price is currently well below book and intrinsic value 60 40 20 0 Jan-14 Apr-14 Access Jul-14 GTB Oct-14 FBNH Zenith Jan-15 UBA ‒ Underperforming versus the NSE ASI year to date, but has outperformed many Tier 1 peers ‒ Current market price of ₦4.99 values the company at c.0.44x book value of equity ‒ Rights Price of ₦6.90 represents a P/BV of 0.61x and a P/E of 2.6x, still a significant discount to the Bank’s intrinsic value and an attractive entry price for long term investors Average broker consensus is a “buy” with a target price of ₦11.84 Stock is currently trading at a 126% discount to the broker consensus target price Latest Broker Recommendations 16 14.00 12.95 Target Price (₦) 14 12.89 12 12.30 12.20 11.84 Median Target Price: ₦11.84 11.40 10.82 11.31 10.40 10.36 Vetiva SBG Securities 10 8 6 4 2 0 Exotix © 2014 ACCESS BANK PLC BPI BGL FBN Capital ARM Chapel Hill Imara RenCap CardinalStone Source: Capital IQ, Bloomberg, Standard Bank analysis as of 12 September 2014 Note: Banks Index is composed of Access, FBN, GTB, Zenith, UBA, Diamond, Stanbic, Skye, Fidelity, and FCMB *Unity Bank share price at RI announcement was 50 Kobo. Nigerian regulations disallow trading at a discount to the nominal value of shares 10