Kuwait Projects Company Holding (K.S.C.P.) · KSE:KPROJ
Kuwait Projects Company Holding (K.S.C.P.) — Kuwait Projects Company Holding (KIPCO) — Investor Presentation (March 2008)
33 slides from Kuwait Projects Company Holding (K.S.C.P.)'s investor presentation, March 2008
Slide 1: Strength to Success
Strength to Investor Presentation Success March 2008
Slide 2: Disclaimer
Disclaimer The information contained in this presentation relates to Kuwait Projects Company Holding K.S.C. (Closed). This presentation contains forward-looking statements. These statements may be identified by such words as "may", "plans", "expects", "believes“, “projected” and similar expressions,
Slide 3: Agenda
Agenda 2007: Review 2007: Review of Group Companies 2008: Strategic Roadmap 2008: Outlook 3
Slide 4: 2007: Key Achievements
2007: Key Achievements Highest ever profit achieved by a listed company in Kuwait Sixteenth year of consecutive profitability Total Shareholder Return in 2007 was 465 fils (share price increase: 375 fils + dividend: 90 fils) One of the highest rated public corporate in MENA by Standard & Poo
Slide 5: 2007: Superior Performance
2007: Superior Performance KD Million KIPCO Net Profit 522 508 67 47 50 34 38 2005F* 2005A 2006F* 2006A 2007F* 2007A 2007 Normalised** On a normalised basis, KIPCO’s Net Profit has increased at a CAGR of 33% during 2005-07 * Forecast as per Shafafiyah Investor Forum ** Excluding non-recurring income
Slide 6: 2007: Key Financial Indicators
2007: Key Financial Indicators KD Million Cash & Equivalents 369 491 1,781 120% Total Asset 1,064 1,359 4,204 99% Shareholder Equity 211 232 663 77% Net Income 38 50 522 270% EPS (Fils) 37 49 514 272% DPS (Fils) 25 50 90 90% No share capital increase since 1996 Cash & cash equivalents includes cash
Slide 7: KIPCO Net Placer of Funds
2007: KIPCO Net Placer of Funds KD Million Liquidity Position* 90 -223 -248 2005 2006 2007 * Liquidity position is computed as gross debt less cash and liquid assets at KIPCO Parent; Cash & liquid assets includes cash in hand + financial assets at fair value through income statement + financial asse
Slide 8: Growth in Stock Price
2007: Growth in Stock Price Stock Price Performance Fils Mar 19, 2008 1400 1,300 Fils 1200 1000 800 Dec 31, 2007 870 Fils 600 Jan 1, 2007 400 495 Fils 200 Jan 01, 2005 206 Fils 0 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 During 2007, KIPCO Stock appreciated by 76% 8
Slide 9: Agenda
Agenda 2007: Review 2007: Review of Group Companies 2008: Strategic Roadmap 2008: Outlook 9
Slide 10: KIPCO: Sectors of Presence
KIPCO: Sectors of Presence 10
Slide 11: KIPCO: Commercial Banking Overview
KIPCO: Commercial Banking Overview Growing network of operations Commercial Banking Network across the MENA region Mostly organic growth Strong growth in profitability Key Financial Indicators of Commercial Banking Companies* KD Million 2006 2007 % Growth Total Assets 3,097 3,931 27% Gross Rev
Slide 12: 2007: Key Achievements
2007: Key Achievements Higher Rating Capital Moody’s S&P Intelligence Burgan Bank C- ( ) BBB+/Positive ( ) A- ( ) Awards Burgan Bank awarded Gulf region’s first Hawkamah – UAB Bank Corporate Governance Bank Burgan Bank awarded the Euromoney Award 2007 for ‘Best Local Private Bank’ JKB awarded
Slide 13: KIPCO: Asset Management & Investment Banking (AMIB) Overview
KIPCO: Asset Management & Investment Banking (AMIB) Overview AMIB Network Growing component of financial services sector KAMCO leading asset management firm in Kuwait Recently initiated regionalisation strategy Royal Capital Iskan Key Financial Indicators of AMIB Companies* KD Million 2006 200
Slide 14: 2007: Key Achievements
2007: Key Achievements Continued Growth in Assets Under Management KD Million 2006 2007 % Growth Asset under Management 1,923 2,456 28% Network Growth In September funded 44% stake in Royal Capital In March 2008, acquired 32.5% stake in Millennium Finance Corporation an Islamic Investment Bank r
Slide 15: KIPCO: Insurance Overview
KIPCO: Insurance Overview GIC is market leader in Kuwait Insurance Network Regional presence across 6 countries Mostly organic growth Key Financial Indicators* KD Million 2006 2007 % Growth Total Assets 187 223 19% Gross Revenue 78 84 7% Net Profit 8 38 349% *Includes GIC (Consolidated) at 100
Slide 16: 2007: Key Achievements
2007: Key Achievements Higher Credit rating Long Term Credit Rating S&P GIC BBB+/Positive ( ) BKIC BBB+/Positive ( ) Regional Expansion & Growth Separate Gulf Life Insurance Company established in Kuwait Approval from Kuwait Ministry of Insurance to establish Takaful Unit Approval from Saudi A
Slide 17: KIPCO: Media Overview
KIPCO: Media Overview Showtime is the flagship media Media Network company of the KIPCO Group Established as a Joint Venture with Viacom Operations in over 22 countries Subscriber base of over 370,000 customers Key Financial Indicators - Showtime 2006 2007 % Growth Subscriber Base 303 370 22
Slide 18: 2007: Key Achievements
2007: Key Achievements Won Premier League Rights Launched bouquet of sports programming Commenced live broadcast of English Premier League in August 2007 SHOWSPORTS 4 commenced operations in October 2007 Re-launched Platform Showtime re-launched in April with new content and new positioning
Slide 19: KIPCO: Real Estate Overview
KIPCO: Real Estate Overview United Real Estate Company, is the Real Estate Network real estate arm of the KIPCO Group Regional presence across 7 countries Predominantly in office, retail & hospitability segment Focused on property development and asset management Key Financial Indicators - U
Slide 20: 2007: Key Achievements
2007: Key Achievements Network Growth Commenced construction of United Tower in Kuwait Commenced Abdaly project in Jordan Commenced Salalah project in Oman Completed Fairmont Hotel project in Egypt Establishing subsidiary companies in Jordan, Syria & Oman 20
Slide 21: KIPCO: Industrial Overview
KIPCO: Industrial Overview United Industries Company is Industrials Network the industrial arm of KIPCO Group Sectors of focus: food, energy & industrial Portfolio of listed & unlisted companies with significant growth potential Key Financial Indicators - UIC KD Million 2006 2007 % Growth Net
Slide 22: 2007: Key Achievements
2007: Key Achievements Finalised Strategy 2008-12 Focus on three core sectors: Food, Energy & Basic Industries Exits Sale of entire stake in United Fisheries of Kuwait at a gain of KD20 Million Focused Portfolio Expansion Increased stake in SADAFCO Acquired stakes in Al Qurain Petrochemicals
Slide 23: Agenda
Agenda 2007: Review 2007: Review of Group Companies 2008: Strategic Roadmap 2008: Outlook 23
Slide 24: KIPCO Strategy
KIPCO Strategy KIPCO’s Strategy is to invest in, and build a portfolio of, companies that produce sustainable and predictable cashflow The target for each company is to: achieve year-on-year revenue growth of 20% OR revenue growth that is at least 2-3 times the growth in real GDP in the countr
Slide 25: 2007: Laying the Roadmap
2007: Laying the Roadmap Increased role of financial services Increase ownership, strengthen capital base, accelerate regionalisation Introduce new products, services and businesses Explore new investment opportunities Identify new sectors of growth (Education, Residential Housing) Achie
Slide 26: 2008: Setting Milestones…Financial Services
2008: Setting Milestones…Financial Services Financial Services…Streamline Holding Structure Commercial Banking Asset Management & Investment Banking Commercial Banking & Asset Management…Accelerated Regionalisation Increase market shares in existing markets and explore acquisition opportunitie
Slide 27: 2008: Setting Milestones…Other Sectors
2008: Setting Milestones…Other Sectors Media… Options for Showtime Evaluate consolidation opportunities; OR Monitor market conditions for Private Placement or IPO Emerging Sectors…Evaluate Investment Opportunities Education: K-12 Projects in India, GCC and broader MENA Region Housing: Reside
Slide 28: 2008: Setting Milestones…Increase Investor Communication
2008: Setting Milestones…Increase Investor Communication Greater Investor Communication Shafafiyah 2008 extended to all listed companies of the KIPCO Group Increased presence of KIPCO at various investor forums organised in the region Evaluate options for listing on multiple exchanges KIPCO ev
Slide 29: Agenda
Agenda 2007: Review 2007: Review of Group Companies 2008: Strategic Roadmap 2008: Outlook 29
Slide 30: 2008: Another year of Growth
2008: Another year of Growth Net Profit (KD Million) 67 105 - 110 Dividend (Fils) 90* 70 - 80 * Plus 10% bonus shares 30
Slide 31: 2008: Hidden Value of Group Companies
2008: Hidden Value of Group Companies (KD Million) Burgan Bank 118 315 United Gulf Bank 66 143 Gulf Insurance Co. - 22 Wataniya (NMTC) 207 - KIPCO Total 391 480 Note: Hidden value defined as the difference between market value and (carrying cost + goodwill) of listed core companies; March 2008 is co
Slide 32: In Summary: KIPCO Group
In Summary: KIPCO Group (KD Million) (US$ Million) Assets Under 6,611 23,709 Management1 Total Revenue2 885 3,223 Net Income2 522 1,901 Market Cap of Listed 2,101 7,655 Group Companies3 1. Includes Total Assets of all KIPCO Group companies on a 100% basis 2. KIPCO Consolidated total revenue and net
Slide 33: Thank you
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