Listing on the Nigerian Stock Exchange

& Facts behind the Listing

November 4th, 2014

I. The Opportunity

II. Overview of Omoluabi Savings & Loans Plc.

- The Bank

- History and Business of the Company

- Key Highlights

- Board & Management Team

- Ownership Structure

- Business Prospects and Going Concern Status

- Overview of Regulation

III. Financial Performance

IV. Thank You

table of contents

I. The Opportunity

The Opportunity – Omoluabi NGN 1.65 Billion NSE IPO

Issuer

Listing

Transaction Structure

The Offer

Market Capitalization at

Initial Public Offer

Price-Pre offer:

Events

Omoluabi Savings and Loans Plc.

Nigerian Stock Exchange (“NSE”)

Initial Public Offer (“IPO”)

3,000,000,000 Ordinary Shares of N0.55 each.

Market Capitalization at

Initial Public Offer

Price-Post offer:

N1,100,000,000

N2,750,000,000

Syndicate

Issuing House: MorganCapital Securities Limited

Underwriters: MorganCapital Securities Limited/UniCapital Plc.

Designated Advisers: MorganCapital Securities Limited

Admission and commencement of unconditional trading on

the NSE: November 4th, 2014.

II. Overview of Omoluabi Savings & Loans

Plc.

THE BANK

The cardinal objective of establishing Omoluabi Savings and Loans Plc. (“OMOLUABI” OR “the bank”) is to avail the people of Osun State in particular and Nigeria in general the opportunity to acquire their own homes. Our target clientele include individuals, corporate bodies, educational institutions, government parastatals and agencies, co-operative societies, non-governmental organisations, etc. operating within and outside Osun State. We are also totally committed to the provision of high quality banking and financial operations to our numerous customers.

HISTORY AND BUSINESS OF THE BANK

The Bank is a Primary Mortgage

Institution conceptualized and put in

place by the Government of Osun State,

Nigeria.

The Bank was incorporated on the 9th

of March 1993 as Osun Building

Society Ltd (Mortgage Bankers).

The Bank was issued with a licence to

carry on Mortgage Banking Business in

April, 1993.

The Bank changed its name to

Livingspring Savings & Loans Limited

on 30th June, 1998, and to Omoluabi

Savings & Loans Limited on 17th April

2013.

The Company converted to a Public

Liability Company (PLC) on 8th May,

2013 in line with its vision to broaden

its shareholder-base and to get Listed

on the Nigerian Stock Exchange.

KEY HIGHLIGHTS

Strong Economic Indicator

Renaissance Capital, a leading emerging markets investment bank in Africa, has revealed

that Osun, Ekiti, Lagos and Oyo States are the leading economies in Nigeria. Being a State

Mortgage Institution, the Bank will definitely benefit to a large extent as a result of the

rapid transformation going on in the State.

The economy of the Osun State grew from N110 billion Gross Domestic Product (GDP)

recorded in 2010 to over N800 billion 2013. This has created a lot of demand for

Mortgages, as disposable income of the citizens’ increases so demand also increases. The

influx of people into Osun is creating a brand new economy that needs to be serviced.

Favorable Industry Fundamentals

Housing Shortfall in Nigeria is estimated at between 12 – 16 million. In Osun State there

is a shortfall of over three hundred thousand housing units. Commercial real-estate is

also in high demand as a result of increased economic activities in the State.

Mortgage Finance requirement for the country is conservatively put at between 15 – 20

trillion naira.

Only about 5% of the 13.7 Million housing units in Nigeria currently financed with a

mortgage.

The rental market for real estate is very huge; an average household in Nigeria spends

about 40% of their disposable income on rents; this so because well over 70% of

Nigerians still lives in rented apartment mainly because of inaccessibility to Mortgage

Finance.

Housing stock in Nigeria is estimated at 10.7million, out of which only about 5% is in

formal mortgage. These numbers are lower in Osun State, there is a lot of opportunities

for Mortgage Institutions like Omoluabi.

Home ownership in Nigeria put at 10% compared to 72% US, 78% UK, 60% China, 54%

Korea, 92% Singapore.

BOARD OF DIRECTORS

Dr. Wale Bolorunduro is a seasoned banker who had made his impact felt

in both the banking and energy sector in Nigeria. He attended Obafemi

Awolowo University where he bagged a first class degree in Metallurgical

and Materials Engineering in 1990. He had then the best faculty grade.

He proceeded to University of British Columbia in Canada in 2009 where

he bagged his Master of Science degree in Business Management and a

Doctorate Degree in 2002. He later proceeded to Leeds Business School

in United Kingdom in the year 2009 where he has a Master of Science

degree in Corporate Governance.

Chief (Mrs.) O.A. Olotu attended University of Ife now Obafemi Awolowo

University between 1971 – 1976 where she bagged her first degree in

Estate Surveying and Management and a Master’s Degree in Business

Administration in 1995 from the same University. She is a fellow of the

Nigerian Institute of Estate Surveyors and Valuers (A.N.I.S.V). She is also

an Associate of Rating and Valuers Association of the United Kingdom.

She currently the Managing Director of Olaitan Olotu & Co. a firm of

Estate Valuers and Developers in Ibadan.

Mr. A.A. Kolawole is a graduate of Accountancy from the

University of Maiduguri in Borno State between 1982

and 1986. He is a Fellow of Certified National

Accountants of Nigeria and a member of the Chartered

Institute of Taxation of Nigeria. He joined the Civil Service

as an Accountant Grade II in 1987 and rose through the

ranks to the position of Accountant General of the State

of Osun. He has attended many workshops and seminars

in financial management and public finance. He is

married with children.

Mr. Aina attended University of Ibadan between 1984

and 1987 where he bagged a Bachelor of Science Degree

in Geography with the Second Class Upper Division. He

also obtained a Masters Degree in Geography from the

same institution in 1990. Mr. Samuel Ayanleye Aina

worked briefly as a lecturer of Rufus Giwa Polytechnic,

Owo before joining the Civil Service of the Old Oyo State

in 1989. He rose through the ranks to the position of

Permanent Secretary, Ministry of Finance and Economic

Development. Mr. Aina is a seasoned administrator who

is married with children.

Chief (Mrs.) Olaitan A. Olotu (Member)

Dr. Wale Bolorunduro - Chairman of the Board

Mr. Samuel A. Aina (Member)

(Member)

Mr. Alaba A. Kolawole (Member)

(Member)

(Member)

Mr. A.A. Adepeju attended the Polytechnic Ibadan between 1975 and

1977 where he obtained an Ordinary National Diploma in Accountancy.

He became a Chartered Accountant in 1982 and he became a Fellow of

the Institute of Chartered Accountants of Nigeria in 1994. Mr. Adetunji

Adepeju is also professional Member of Nigerian Institute of

Management. He worked in the defunct Co-operative Bank Plc. and was

once the Chief Executive of Co-op Building Society. He is currently the

Managing Consultant of Projektlink Konsult Limited in Ibadan. He is

married with children.

Mr. Adetunji A. Adepeju (Director)

KEY MANAGEMENT TEAM

He is a holder of a Bachelor of Science (BSc. Hons, 1984) in

Business Administration from the University of Lagos. He has in

addition a Masters of Business Administration (MBA) degree from

the University of Ilorin. He came on board as a Manager

(Marketing) at the commencement of operations in 1999 where

he coordinated all marketing activities of the company.

He obtained in 1978 a Bachelor of Science (BSc. Hons.) degree in

Botany from the University of Ibadan. He also holds a University

of Lagos Bachelor of Science (Bsc. Hons 1986) degree in

Accounting. He has already completed the course work for the

award of Masters of Business Administration (MBA) at the

Obafemi Awolowo University, Ile-Ife. He qualified in 1998 as an

Associate of the Institute of Chartered Accountants of Nigeria

(ICAN).

Mr. Babafemi Alao (Managing Director/CEO)

Mr. Josiah Ogunlumade (Chief Financial Officer)

She is a holder of B.Ed (BUSMgt) 1993 and PGD in Public

Administration also in 1993 from the University of Port Harcourt.

She also has a Masters Degree in Public Administration and

Business Administration from OAU, Ife in 2012. She was

employed as a Senior Banking Officer in 1999. She is a pioneer

staff and has risen to the managerial cadre.

He holds a Higher National Diploma (HND 1996) in Banking and

Finance from Osun State College of Technology Esa Oke. Mr

Fasakin also has a Master’s degree in Business Administration

from the Ekiti State University in year 2005.

Mrs. Esther Idowu (Head, Banking Operations)

Mr. Adelani Fasakin (Head, Internal Audit)

OWNERSHIP STRUCTURE

Top Five (5) Shareholders

Shareholder Nos. of Ordinary Shares Ownership %

MorganCapital Securities 1,950,000,000 39.00% Local Government Areas 1,090,133,708 21.80% UniCapital Plc. 1,050,000,000 21.00% State Government of Osun 909,706,292 18.18% Others 160,000 0.01% Total 5,000,000,000 100%

39%

21%

21%

18%1%

MorganCapital

Local Government Areas

Unicapital Plc

State Government of Osun

Others

OWNERSHIP STRUCTURE

BUSINESS PROSPECTS AND GOING CONCERN STATUS

The mortgage industry is expected to experience a major boost in activity as a result

of the ongoing reforms of the Federal Government in mortgage delivery services and

monetization of major personnel costs. The Company is expected to witness a

turnaround in its activities in the light of the prevailing positive environment of its

catchment area of the Osun State.

The Osun State administration is committed and desirous of partnering with the

private sector in the provision of affordable housing for its growing population.

OMOLUABI has strategically positioned itself to maximize this opportunity and has

diversified its product mix to meet its customer needs.

With the above favorable environment, and in the absence of unforeseen

circumstances, the Board of Directors are confident that OMOLUABI’s going concern

status is assured.

OVERVIEW OF REGULATION

The financial requirements which may be varied as the CBN

considers necessary are as follows:

Minimum capital:

i) National PMB - N5, 000,000,000.00

ii) State PMB - N2, 500,000,000.00.

Real Estate Construction Finance to Total Assets: A maximum of

twenty five [25%] of real estate construction finance to total

assets.

Mortgage Assets to Total Assets Ratio: A minimum of fifty

percent [50%] of mortgage assets to total assets.

CENTRAL BANK OF NIGERIA REVISED GUIDELINES FOR PRIMARY

MORTGAGE BANKS IN NIGERIA

KEY HIGHLIGHTS

Maximum Equity Investment Holding Ratio:

No Mortgage Bank shall invest more than ten

percent [10%] of its shareholders' funds

unimpaired by losses in the equity of any

venture or undertaking without the prior

approval of the Bank.

Minimum Mortgage Assets in Residential

Mortgages: No mortgage bank shall invest

less than 75% of its mortgage assets in

residential mortgages.

Non-performing loans to total loans ratio: No

PMB shall permit the non-performing loans in

its portfolio to exceed 30% of total loans and

advances. Once this ceiling is breached, the

PMB must suspend granting new loans and

advances until it has made such recoveries as

would keep this ratio within the permissible

range.

III. Financial Performance.

1336.11261.5

1338.3

1519.1

1931.3

3103.2 3080.5

0

500

1000

1500

2000

2500

3000

3500

2009(March)

2010(March)

2011(March)

2012(March)

2012(Dec)

2013(Dec)

2014(June)

Total Asset

170.6125.5

147.2

303.1

709.9

310.8344.2

0

100

200

300

400

500

600

700

800

2009(March)

2010(March)

2011(March)

2012(March)

2012(Dec)

2013(Dec)

2014(June)

Deposits

1045.1 1015.7 1030.4 1034.1 1018.7

2599.4 2569.9

0

500

1000

1500

2000

2500

3000

2009(March)

2010(March)

2011(March)

2012(March)

2012(Dec)

2013(Dec)

2014(June)

Net Asset

74.1

138.4

81.2

94.9

71.3

83.6

99.3

0

20

40

60

80

100

120

140

160

2009(March)

2010(March)

2011(March)

2012(March)

2012(Dec)

2013(Dec)

2014(June)

Net Income

27.1

-29.4

18.1

2.1 3.5

-9.5

41.8

-40

-30

-20

-10

0

10

20

30

40

50

2009(March)

2010(March)

2011(March)

2012(March)

2012(Dec)

2013(Dec)

2014(June)

Profit After Tax

912.8 870.8 837.1970.1

1265.5

2128.1

1746.2

0

500

1000

1500

2000

2500

2009(March)

2010(March)

2011(March)

2012(March)

2012(Dec)

2013(Dec)

2014(June)

Cash & Cash Equivalent

83.1106.6

148.4 154.2

215.9

424.6

716.2

0

100

200

300

400

500

600

700

800

2009(March)

2010(March)

2011(March)

2012(March)

2012(Dec)

2013(Dec)

2014(June)

Loans & Advances

CONCLUSION

● Clear Market Opportunity in one of the fastest growing sectors in Nigeria: With a fast-growing

economy and a rapidly urbanizing population, the Nigerian mortgage market has become a frontier for

investments in Africa. Housing shortfall in Nigeria is estimated between 12 – 16 million units (CBN

2013). This provides a veritable business opportunity for mortgage firms like Omoluabi Savings and

Loans Plc. to tap into.

● Huge Mortgage Finance Requirement in the Country: Nigeria’s Mortgage Finance requirement is

conservatively put at between 15 – 20 trillion naira, the market is absolutely huge and largely

untapped. Omoluabi Savings and Loans Plc. will be able to tap into a ready-made market with

unlimited opportunities. Home ownership in Nigeria is put at 10% compared to 72% US, 78% UK, 60%

China 54% Korea, 92% Singapore, therefore the room for growth in Mortgage financing is unlimited.

● License: The total number of mortgage institutions in the country currently stands at 40, consisting of

7 in the national license category, and 33 in the state license category, out of over 80 mortgage

institutions that sought licenses from Central Bank of Nigeria (“CBN”) as a result of the re-capitalization

directive. OMOLUABI is one of the 33 mortgage banks that scaled the recapitalization deadline of Dec

31st, 2013.

● Competition: OMOLUABI currently has a State Mortgage License which means it is registered do

business in Osun State. OMOLUABI is the only Mortgage Bank licensed to operate in Osun State, which

gives OMOLUABI a competitive advantage in the mortgage space in Osun State. OMOLUABI will in the

near future obtain a national license when it increases its share capital to N5b. The Bank can therefore

tap into opportunities in the South-West and across Nigeria.

Thank You