Www.heirsholdings.com ONLY IN NIGERIA IS OUR STORY EVEN POSSIBLE THE 17 th NIGERIAN ECONOMIC SUMMIT...

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ONLY IN NIGERIA ISOUR STORY EVEN POSSIBLE

THE 17th NIGERIAN ECONOMIC SUMMITNOVEMBER 10, 2011


OPPORTUNITIES & CHALLENGES

Weak institutions and high level of bureaucracy

Pervasive corruption

Weak investor confidence

Insecurity

Large infrastructural gaps and challenges

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THE BAD - HISTORY

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ONCE UPON A TIME….


In January 2001, a telecommunications company wins bid for mobile license in Nigeria at a cost of $285 million

Nigeria deemed a risky bet

Institutional investors sceptical

Telecommunications

Sector

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Fewer than four land lines per every 1,000 people in Nigeria

Extremely limited wireless capacity and unproven market

Shareholders extremely wary Company gains 300,000 subscribers

first year

Back in 2001

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Today, the company has 40 million subscribers and growing

In 2010, the company reported US$17 billion in revenue out of which US$5 billion came from Nigeria alone

*Source: BusinessDay, March 10, 2011

In 2011

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Nigeria operations has 27% of company’s global subscriber base

Nigeria is the most profitable subsidiary, contributing about 30% of the Group’s revenue

* Source: BusinessDay, March 10, 2011

In 2011

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Only in Nigeria is this story even possible

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In 1962, first brewery outside of Ireland and Great Britain built at Ikeja, Lagos

Steady growth prompts building of three more breweries

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Distribution and logistics challenges

Poor infrastructure – roads, power

The Challenges

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Turnover grew by 48.6% from N62.2 billion (US$410 million) in June 2007 to N123.6 billion (US$820 million) in June 2011

Operating profit increased by 85.7% from N14.2 billion (US$94 million) recorded in June 2007 to N26.5 billion (US$176 million) in June 2011

Emerging markets expected to contribute 50% of company’s global net sales by 2015, up from 34% in 2011

Africa is the largest contributor to the growth in emerging markets

2011

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From July 1, 2011 Africa started operating as an autonomous region

Most of the above has been largely driven with Nigeria as the largest single contributor in Africa

Nigeria is currently the world’s second-biggest market for the beer outside Britain, accounting for 41% of global volume sales of stout

2011

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Two major banks merge in 2005

Consolidated entity becomes a Pan-African organisation with operations in 19 African countries and three continents in 5 years.

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Was a one-country financial institution Had less than 3 million retail customers 300-branch network and less than 40 ATMs Employed about 7,000 Nigerians Total balance sheet size of about US$ 2.5 billion

2005

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Bank has presence in 19 African countries Present in 3 major international financial

centres (New York, London and Paris) Bank has a balance sheet size of US$19.5 billion Bank has more than 700 branches nationwide

with almost 3,000 ATMs Employs almost 20,000 employees from across

the continent

2011

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Operational Regulatory Approval in Progress

BeninNigeria

Cameroon

Uganda

Kenya

Tanzania

Zambia

D.R Congo

Congo Brazzaville

Gabon

Ghana

Cote d’lvoire

Liberia

S. Leone

Guinea

USA UK

ParisAbu Dhabi

Guangzhou

Senegal

Burkina FasoChad

Mali

Cayman Island

Mozambique

Zimbabwe

Angola

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The first major Nigerian-produced and directed movies were made in the 1960s by Ola Balogun and Hubert Ogunde

In 1992, the hugely successful “Living in Bondage” is produced by Kenneth Nnebue and launches new era in filmmaking

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High cost of production Absence of formal regulated structure Piracy Lack of distribution network Funding problems Lack of training facilities

The Challenges

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Despite virtually unhindered piracy, industry remains firm growth sector with a 70% yearly average surge in the number of movies registered between 2000 and 2006*

A $250 million industry second only to India’s

Thousands of jobs – industry is 2nd largest employer after agriculture*

Today

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*Source: World Bank study, Ismail Radwan & Pierre Straus


A positive image for Nigeria internationally

An avenue to promote Nigeria’s rich culture and talents

Today

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WHAT DO WE LEARN

Nigeria offers:

An extraordinary demographic profile – 7th largest

population in the world

Abundant workforce

One of the fastest growing economies in the world

Untapped abundant natural resources

Market-oriented reforms shaping economic policy

Entrepreneurial spirit

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WHAT DO WE LEARN

Nigeria is:

A destination where multinationals can and do

succeed

Where domestic champions are rising and adopting

increasingly regional and global strategies

Full of people who are entrepreneurial, innovative,

and ready to leverage opportunities and adopt

technology

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Only

In Nigeria Are these

stories Even possible

Www.heirsholdings.com ONLY IN NIGERIA IS OUR STORY EVEN POSSIBLE THE 17 th NIGERIAN ECONOMIC SUMMIT...

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