Centum Investment Company Plc · NSEKE:CTUM
Centum Investment — Investor Presentation (March 2019)
35 slides from Centum Investment's investor presentation, March 2019
Slide 1: Investor Update Presentation
Investor Update Presentation March 2019
Slide 2: Table of Content
Table of Content Company Overview pg. 3 - 11 Our Portfolio pg. 12 - 32 Appendix pg. 33 - 38 2
Slide 3: Centum at a Glance
Centum at a Glance KES 21.3b Market Capitalisation(1) Real Estate 50% (2) KES 49.0b Net Asset Value Private Equity 35% Development 8% 18% CAGR on NAV FY14 – HY19 Marketable Securities 7% 23% Average Annualised Return FY14 – HY19 KES 67.0b Total Assets(2) 6 Active Sectors(3) 0.4% Cost Efficiency HY19
Slide 4: Our Strategic Pillars: Performance as at HY19
Our Strategic Pillars Centum 3.0 FY14 - FY19 Centum 3.0 was Centum’s 5-year strategy developed for the period FY 2014 – FY 2019 as a developer of investment-grade assets Return Scale Focus Brand Cost Generate 35% Grow total assets to Develop and scale Develop sector Maintain costs annualised return
Slide 5: Our Strategic Pillars: Transition to Centum 4.0 FY20-FY24
Our Strategic Pillars Transition to Centum 4.0: FY20 - FY24 Key objectives have been set that seek to reshape and rebalance the business to focus on sustaining attractive returns 01 • Robust exit pipeline of mature assets across the Portfolio to optimize Gross Return Optimise Gross Return • Portfoli
Slide 6: Our Portfolio as at 30 September 2018
Our Portfolio As at 30 September 2018 Total Assets NAV NAV/ Share 01 Real Estate Land banks in strategic locations that have KES 33.4 billion KES 22.0 billion KES 33.06 | 44.92% been master-planned to new urban nodes Private Equity 02 Trading subsidiaries or investments KES 23.5 billion KES 20.9 bil
Slide 7: Our Performance: 5-Year Return Snapshot
Our Performance 5-Year Return Snapshot KES millions FY14 FY15 FY16 FY17 FY18 HY19 Return Drivers Dividend Income 1,789 1,318 2,671 1,765 2,040 266 FY14 Interest Income 40 77 676 1,326 1,347 623 • Partial sale of Tanzania Breweries Limited leading to payment of KES 1.1b and dividends by Centum Exotix
Slide 8: Our Performance: Company Gearing
Our Performance Company Gearing Borrowings by Nature of Debt HY19 Debt Maturity Profile (KES millions) Company Liquidity Revolving 2% Overdraft Facility Credit Facility 5,894 6,066 Cash and 17% equivalents Listed securities held by KES 58m held on Centum Centum balance sheet 43% million KES Bond II
Slide 9: Agenda
Agenda Real Estate Pg. 12 Private Equity Pg. 20 Our Portfolio Marketable Securities Pg. 26 Development Pg. 29 9
Slide 10: Real Estate Portfolio: Infill Development Projects
Real Estate Portfolio Infill Development Projects as at January 2019 Infill Project Size Units under Development Realised Sales Key Dates 70% in market validation Construction Start 30% in construction Q3 FY 2019 1,327 units >KES 1 billion Completion Q3 FY 2021 258 units sold 17% in market validatio
Slide 11: Real Estate Portfolio Assets
Real Estate Portfolio Assets Sector Net Asset Value contribution KES 22,002 million | 44.9% | KES 33.06 per share Vipingo Development Limited Stake: 100% 10,254 acres mixed-use development anchored by an industrial zone dubbed the Vipingo Investment Park, the site is located in Kilifi County, Kenya.
Slide 12: Real Estate Portfolio: Two Rivers Development Outlook
Real Estate Portfolio Two Rivers Development Value Drivers Project Pipeline Riverbank Apartments • Two Rivers Mall was 79%(1) let (on gross lettable area) Retail ― Increased tenant uptake on both local and international brands • Two Rivers Office Towers, 18%(1) of the space is Office currently let w
Slide 13: Real Estate Portfolio: Vipingo Development Overview
Real Estate Portfolio Vipingo Development: Overview HY19: Vipingo had achieved; Value Uplift plot sales of KES 400m and To realize a target return of 30% realized sales of KES 1.05b from infill projects Sale of Unserviced Land Sale of circa 3,000 acres of unserviced land Strategic Pillars Sale of Se
Slide 14: Vipingo Development: Progress Update
Real Estate Portfolio Vipingo Development: Progress Update Sea Water Project Pipeline Investment Park Awali Estate 1255 Palm Ridge Desalination Awali Estate Phase 1: Spread 152 units on 30 1,255 apartments on - Description over 180 acres acres 20 acres Acquire Land Master Plan and Obtain Approvals (
Slide 15: Real Estate Portfolio: Pearl Marina Overview
Real Estate Portfolio Pearl Marina: Overview Value Uplift Unlock key infrastructure and social amenities HY19: Pearl Marina had realized sales of within the development KES 754 million Targeted key social amenities include an Uganda National Roads Authority mobilized international school, sports fac
Slide 16: Pearl Marina: Progress Update
Real Estate Portfolio Pearl Marina: Progress Update Riviera Project Pipeline Mirabella Villas Bella Vista Town Houses Mirabella Residences Description 22 units on 4.7 acres 240 units on 6.5 acres 53 units on 4.7 acres Acquire Land Master Plan and Obtain Approvals Ongoing Ongoing (NEMA*) Market Valid
Slide 17: Agenda
Agenda Real Estate Pg. 12 Private Equity Pg. 20 Our Portfolio Marketable Securities Pg. 26 Development Pg. 29 17
Slide 18: Private Equity: Performance over Centum 3.0
Private Equity Performance over Centum 3.0 Private Equity portfolio remains a significant driver of returns for the Group reflecting the success of our active portfolio management strategy Private Equity IRR 100% 82% Centum 3.0 80% Target IRR 60% 45% 40% 33% 33% 30% 27% 20% 0% Centum 2.0 FY15 FY16 F
Slide 19: Private Equity Portfolio: Fast Moving Consumer Goods
Private Equity Portfolio Fast Moving Consumer Goods Portfolio FMCG Sector Net Asset Value contribution KES 12,031 million | 24.6% | KES 18.08 per share Centum’s Share of Almasi Bottlers Limited (ABL) & Nairobi Bottlers Limited (NBL) EBITDA (KES mn), 2013 - 2017 3000 Almasi Beverages Limited CAGR: 22
Slide 20: Private Equity Portfolio: Financial Services
Private Equity Portfolio Financial Services Portfolio Financial Services Sector NAV contribution KES 3,607 million | 7.2% | KES 5.30 per share Sidian Bank Limited Stake: 77.0% Net Asset Value per share contribution: KES 4.64 per share | 6.3% A leading tier III bank SME focused commercial bank in Ken
Slide 21: Sidian Bank: Accelerated Growth in Non-funded Income
Sidian Bank Accelerated Growth in Non-funded Income 2013 2017 KES 8,694 KES 11,409 Loan Book Loan Book KES 9,165 KES 12,761 Customer Deposits Customer Deposits KES 1,868 KES 3,447 Shareholder Funds Shareholder Funds • The bank is on track to position itself as a leading bank in trade finance solutio
Slide 22: Private Equity Portfolio: Others
Private Equity Portfolio “Others” Portfolio Others Sector NAV contribution KES 3,532 million | 7.2% | KES 5.31 per share Isuzu East Africa Stake: 17.8% Net Asset Value per share contribution: KES 2.83 per share | 3.8% Involved in the assembly of trucks, pick-ups and bus chassis via a complete knock
Slide 23: Agenda
Agenda Real Estate Pg. 12 Private Equity Pg. 20 Our Portfolio Marketable Securities Pg. 26 Development Pg. 29 23
Slide 24: Marketable Securities: Return & Track Record
Marketable Securities Portfolio Return & Track Record Marketable Securities NAV contribution KES 4,613 million | 9.4% | KES 6.93 per share MSP vs MSCI – Long Term Track Record Contribution to Group Liquidity over Centum 3.0 Growth of 1,000 Investment from March 2009 [3.9x] 6,000 708 2,532 5,500 5,00
Slide 25: Marketable Securities: Portfolio Performance
Marketable Securities Portfolio Performance Portfolio Returns & Attribution – HY19 Portfolio Diversification by Asset Class (%) MSP vs. Primary & Secondary Benchmarks – HY19 5% 14% 0% -5% -10% -9% -15% -14% -20% -17% 45% -25% 36% -30% -25% Centum MSP NSE 20 Share MSCI Africa ex- MSCI Frontier Index
Slide 26: Agenda
Agenda Real Estate Pg. 12 Private Equity Pg. 20 Our Portfolio Marketable Securities Pg. 26 Development Pg. 29 26
Slide 27: Development Portfolio Overview
Development Portfolio Overview Development Portfolio Net Asset Value contribution KES 1,438 million | 2.9% | KES 2.16 per share Sector Split – Development Portfolio as at September 2018 KES 5,309 million The development portfolio’s focus Assets under development 6% Development Assets as at HY19 is t
Slide 28: Development Portfolio: Priorities in FY19
Development Portfolio Priorities in FY19 Greenblade Growers Limited Completed: Completed: Completed: Completed: • PPA secured, EPC and O&M contracts, • PPA secured, Debt term sheets • The objective is to establish a • The objective is to establish a business Debt term sheets secured, NEMA secured, N
Slide 29: Disclaimer
Disclaimer Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those presented in this report. The risks and uncertainties relating t
Slide 30: Appendix
Appendix
Slide 31: Appendix 1: Real Estate Valuations
Appendix 1: Real Estate Valuations as at 30 September 2018 Carrying Value Carrying Value Valuation NAV Per Share NAV Per Share Portfolio Company HY19 (KES million) FY18 (KES million) Methodology HY19 (KES) HY19 (%) Vipingo Development Ltd. 9,999 7,646 Net Asset Value 10.80 14.7% Stake: 100% Two Rive
Slide 32: Appendix 2: Private Equity Valuations
Appendix 2: Private Equity Valuations as at 30 September 2018 Carrying Value (KES million) Discounted Portfolio Company Stake Sector HY19 FY18 Valuation Method Multiple4 Almasi Beverages Limited 53.88% FMCG 8,697 8,697 FV3: Multiples - EV1/EBITDA 6.94x Nairobi Bottlers Limited 27.60% FMCG 5,078 5,07
Slide 33: Appendix 3: Marketable Securities Valuations
Appendix 3: Marketable Securities Valuations as at 30 September 2018 Stake Carrying Value Carrying Value Valuation Portfolio Company HY19 (KES million) FY18 (KES million) Method Centum Exotics Limited 100% 3,587 3,589 Market Price Centum QPE 100% 58 396 Market Price Receivables 100% 450 331 Cost Cas
Slide 34: Appendix 4: Development Valuations
Appendix 4: Development Valuations as at 30 September 2018 Carrying Value Carrying Value Valuation Portfolio Company Stake HY19 (KES million) FY18 (KES million) Method Amu Power Ltd 51.00% 2,100 2,144 Cost Akiira Geothermal Limited 37.50% 1,510 1,491 Cost ACE Holdings Limited 16.40% 643 556 Cost Gre
Slide 35: investorelations@centum.co.ke
investorelations@centum.co.ke Centum Investment Company Plc Tel +254 20 2286000 99h Floor, Southern Tower, Two Rivers Mobile +254 709 902 000 PO Box 10518-00100 Email investorelations@centum.co.ke Nairobi, Kenya www.centum.co.ke
Centum Investment Company — Investor Presentation (March 2019) on 6ix