Kuwait Financial Centre Kpsc · KSE:MARKAZ
Kuwait Financial Centre Kpsc — Investor Presentation (December 2018)
43 slides from Kuwait Financial Centre Kpsc's investor presentation, December 2018
Slide 1: Investor Presentation
Kuwait Financial Centre K.P.S.C. "Markaz" (Boursa Kuwait: MARKAZ) Investor Presentation December 2018 Asset Management | Investment Banking
Slide 2: Discussion Guide
Discussion Guide Company Profile .…………................................. 3 Service Offerings ……………….................…….. 9 Strategic Direction ………..…………...……….…22 Corporate Governance ………………………......26 Financial Performance ………..……....……….…30 Corporate, Social and Economic Responsibility..39 2
Slide 3: 1. Company Profile
1. Company Profile 3
Slide 4: Markaz Overview
Markaz Overview A leading financial institution in the region delivering consistent shareholder returns Leading market position Sustainable long-term Building a sustainable Our Team, the cornerstone of shareholder returns economy in Kuwait our success As one of the region’s leading Generates sustain
Slide 5: Driven by an enduring Vision, Mission and Principles
Driven by an enduring Vision, Mission and Principles We build sustainable wealth for our Our The Choice For Our clients and partners through prudent Vision Wealth Creation Mission and innovative solutions. Business Principles Client Focus Innovation Controls Product offerings customised to the cli
Slide 6: Investment and Advisory Solutions
Investment and Advisory Solutions Products and Services Asset Management: Real Estate Investments: Investment Banking: Research: GCC Equity Funds Middle East and North Africa Mergers & Acquisitions MENA focused Research Fixed Income Funds International Advisory Consulting Services
Slide 7: International Investment Reach
International Investment Reach Germany US Kuwait Qatar Bahrain Oman KSA India UAE Egypt Lebanon Jordan Equity Funds Fixed Income MENA Real Estate Investments International Real Estate Investment Banking Advisory Offices 7
Slide 8: Accreditation and Awards
Accreditation and Awards One of the most recognized and well awarded brands across the MENA region Best Asset Manager Best Investment Bank in Research Provider of the Most Innovative Financial in Kuwait Kuwait Year Institution in the By: Global Finance & Middle East By: EMEA Finance EMEA Finance By:
Slide 9: 2. Service Offerings
2. Service Offerings 9
Slide 10: Markaz Offerings
Markaz Offerings Total AUM of KD 1.09 billion, an increase of 6.4% from December 2017 Asset Management Real Estate Investments GCC Equity Funds, Fixed Income Fund, Others Middle East and North Africa, International Total AUM of KD 712.8 million Total AUM KD 380.1 million Asset management continues
Slide 11: Markaz Offerings
Markaz Offerings Adding significant value to clients through high quality advisory services and research Investment Banking Research M&A, Advisory, Equity & Debt Capital Markets, IPOs, Restructuring Mena focused Research, Consulting Services Total transaction value executed up to Dec 2018 of over
Slide 12: Asset Management AUM of KD 713 million
Asset Management AUM of KD 713 million Public Funds GCC Equity Funds Midaf Fund Mumtaz Fund Forsa Financial Fund Markaz Islamic Fund Kuwait Focused; Kuwait Focused; Kuwait Focused; Kuwait Focused; Privately Placed Funds* GCC Equity Funds Fixed Income Funds Real Estate Funds Private Client Portfolios
Slide 13: MENA Real Estate AUM of KD 289 million
MENA Real Estate AUM of KD 289 million Long established track record of investing in MENA Real Estate MENA Real Estate Advisory Investment Philosophy Portfolios and Funds Overview Professional Network Offering real estate investment Focusing on acquiring and Kuwait: Managing part of the A va
Slide 14: MENA Real Estate Investments
MENA Real Estate Investments Strong regional presence with offices in Kuwait, Riyadh, Khobar, Dubai and Abu Dhabi Kuwait KSA UAE Markaz is managing part of the Kuwait Markaz started its operations in the KSA in 2006 Markaz started its operations in the UAE in 2010 Investment Authority’s National R
Slide 15: International Real Estate AUM of KD 91 million
International Real Estate AUM of KD 91 million Thirty year track record of successfully investing in international real estate International real estate operations established in 1978, with the Track Record Funds 1 launch of our first syndicated real estate investment in the US Funds Overview Start
Slide 16: International Real Estate Investments
International Real Estate Investments Last 5 Years Track Record: IRR of 6.9% - 34.0% 1.40x Project Type Asset Location Initiated Ended IRR* Freeport 9 Office Development Texas 2013 2015 15.6% Legacy – Dominion Office Development Texas 2013 2016 11.3% Return on Investment Lakeside Office Development
Slide 17: International Real Estate Investments
International Real Estate Investments Recently Acquired Developments Project Key Characteristics Longley Industrial Development Location: Los Angeles, West Palm Beach Self Storage Location: Palm Beach, Freeport 10 Office Development Location: Dallas, Texas Parc Santa Fe Industrial Location: Denver,
Slide 18: Investment Banking: Overview
Investment Banking: Overview Offers financial advisory and capital markets solutions to both national and regional companies Capital Markets Services Advisory Services Public and Private Placements of Equity Mergers and Acquisitions, both buy-side and Debt Instruments and sell-side Initial Pub
Slide 19: Investment Banking Transactions
Investment Banking Transactions High profile advisory mandates across the region August 2015 September 2016 February 2017 September 2017 December 2017 July 2018 December Stake 61.3% Stake 100% Stake 40% Stake 40% Stake 5.6% Stake 23.3% 2018 Lead M&A advisor to Al Sale of a real estate Advised a clie
Slide 20: Investment Banking Transactions
Investment Banking Transactions Unrivalled Capital Markets execution capabilities 2005 2006 2007 2007 2013 2016 2017 2018 Size: KD 100mn Size: KD 80.82mn Size: KD 50mn Size: KD 66.15mn Size: KD 15mn Size: KD 25mn Size: KD 10.8mn Size: KD 3.3 mn Acted as Senior Lead Advised on and Acted as Lead Manag
Slide 21: Research and Consulting
Research and Consulting Marmore services regional businesses and institutions with MENA focused market intelligence Capital Market Research Policy Research Infrastructure Research Consulting Services Capital market reports provide Marmore has partnered with The infrastructure report Marmore provides
Slide 22: 3. Strategic Direction
3. Strategic Direction 22
Slide 23: Well defined strategic roadmap to capitalize on the upcoming growth opportunities
Well defined strategic roadmap to capitalize on the upcoming growth opportunities Innovate investment offerings, as investors Improving Global Economy seek new risk averse investment products Focus on strengthening corporate relationships and growing investment banking fees Subdued GCC Economy a
Slide 24: Markaz Innovative Solutions
Markaz Innovative Solutions Leading the cutting-edge financial development and new product introduction in the region 1st In Kuwait to launch: Exchange traded options on the True Real Estate Investment Money Market Fund Private Equity Fund of Funds Kuwait Stock Exchange and Trust in 2003 become sole
Slide 25: Led by a visionary management team
Led by a visionary management team Mr. Manaf A. Alhajeri Mr. Ali H. Khalil Mr. Khaled A. Mr. Bassam N. Al- Ms. Amani I. Al-Omani Chief Executive Officer Chief Operating Officer Chowdhury Othman Executive VP Chief Financial Officer Executive VP MENA Equities MENA Real Estate Mr. M. R. Raghu Mr. Peter
Slide 26: 4. Corporate Governance
4. Corporate Governance 26
Slide 27: Board of Directors
Board of Directors Mr. Diraar Y. Alghanim Sheikh Humoud S. Al-Salem Al- Mr. Faisal AbdulAziz Al-Jallal Chairman Sabah Independent Board Member Vice Chairman Mr. Alghanim has over 40 years of Mr. Al-Jallal is the Chairman of the experience in the financial Sheikh Al-Sabah has over 35 Board Audit Comm
Slide 28: Board of Directors
Board of Directors Mr. Ayman Abdulatif Alshaya Mr. Fahad Yaqoub Al-Jouan Mr. Fouzi Ebrahim Al-Mukaimi Mr. Adel M. Alghannam Non-Executive Board Member Non-Executive Board Member Non-Executive Board Member Independent Board Member Mr. Alshaya is a board member of Mr. Al-Jouan has over 30 years’ Mr. A
Slide 29: Board Committees
Board Committees Committed to effective corporate governance and sound business practices Board Executive Committee Nominations & Remuneration Audit Committee Risk Management Committee Committee Mr. Diraar Y. Alghanim Mr. Diraar Y. Alghanim Mr. Faisal AbdulAziz Al-Jallal Mr. Faisal AbdulAziz
Slide 30: 5. Financial Performance
5. Financial Performance 30
Slide 31: 2018 Performance Highlights
2018 Performance Highlights Markaz Assets Under Management Five Year High of KD 1.09 billion Profit and Loss Highlights Balance Sheet Highlights KD 15.30 mn Growth: (0.6)% 2018 Cash dividend3 of 4 Fils per share; payout of 80.0% Total Revenue1 2017 Cash dividend of 7 Fils per share; payout of 77.8%
Slide 32: Dividend Profile
Dividend Profile Consistent Dividend Pay-out and Yield Trend 75.0% 83.3% 75.0% 77.8% 80.0% 6.8% 6.4% 7.0 5.5% 6.0 6.0 4.9% 5.0 4.0% 4.0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Dividend per Share (Fils) Dividend Payout (%) Dividend Yield (%) 2018 Dividends Cash dividend of 4.0 Fils per sh
Slide 33: Profit & Loss Key Metrics
Profit & Loss Key Metrics Full Year Y-o-Y 2018 Income Analysis (KWD 000's) 2018 2017 Growth (%) Management Fees and Commission 8,930 7,302 22% Other Sources of (Loss)/Income Interest Income 679 722 (6%) KD (0.06) mn Dividend Income 1,493 1,283 16% (0.4)% Gain from Investments at Fair Value through P
Slide 34: Balance Sheet Key Metrics
Balance Sheet Key Metrics Dec Dec (KWD 000's) 2018 2017 ASSETS Cash and Bank balances 4,691 7,622 Time Deposits 2,565 1,430 Asset Under Management Investments at fair value through profit or loss 92,674 49,498 Available for sale Investments 0 49,842 Debt instruments at fair value through other compr
Slide 35: Asset Management & Investment Banking
Asset Management & Investment Banking Management Fees & Commission (KD 000’s) CAGR 4.2% 8,930 7,580 7,359 7,782 7,302 2014 2015 2016 2017 2018 Asset Management Fees1 (KD 000’s) Investment Banking Fees (KD 000’s) CAGR CAGR 2.1% 16.4% 7,206 1,724 1,436 6,641 6,594 6,346 939 719 6,583 765 2014 2015 201
Slide 36: Asset Management Fees Income
Asset Management Fees Income Asset Management Fees1 (KD 000’s) AUM (KD million) 1,089 1,093 7,206 1,027 1,027 6,641 6,594 6,346 6,583 935 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Management Fees Percentage 0.64% 0.68% 0.66% 0.61% 0.61% 2014 2015 2016 2017 2018 36 1. Asset Management include
Slide 37: Return on Principal Investments
Return on Principal Investments Income Returns (KD 000’s) Investment Assets1 (KD million) 8,058 161 6,676 6,428 127 128 149 5,576 131 3,010 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Income Returns (%) 5.4% 5.1% 4.4% 4.0% 2.4% 2014 2015 2016 2017 2018 1. Investment Assets include Investments
Slide 38: Annual Financial Trends
Annual Financial Trends Total Revenue (KD 000’s) Net profit (KD 000’s) and Margin (%) 28.9% 28.8% 27.4% 25.6% 15,399 15,301 4,428 14,699 13,926 4,021 4,030 11,257 2,878 14.9% 2,285 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Net Profit attributable to parent company excluding non-controlling i
Slide 39: 6. Corporate, Social and Economic Responsibility
6. Corporate, Social and Economic Responsibility 39
Slide 40: Community service & building a sustainable economy in Kuwait
Community service & building a sustainable economy in Kuwait In its constant endeavor to actively participate in community service and contribute to building a strong and sustainable economy in Kuwait, Kuwait Financial Centre “Markaz” adopted a corporate social and economic responsibility strategy a
Slide 41: Key Developments: CSER Initiatives
Key Developments: CSER Initiatives “Fikra” entrepreneurship program Markaz in partnership with LOYAC Markaz is a proud partner of the set up Committed to develop the human the incubator “Fikra” program, an capabilities in the region, Markaz intensive training program that aims to renewed its annual
Slide 42: Disclaimer
Disclaimer This document has been prepared by Churchgate Partners for Kuwait Financial Centre K.P.S.C. (“Markaz”) for investors, solely for informational purposes. This presentation may contain statements that are not historical facts, referred to as “forward looking statements”. The information con
Slide 43: Kuwait Financial Centre K.P.S.C. "Markaz"
Kuwait Financial Centre K.P.S.C. "Markaz" P.O. Box 23444, Safat 13095 State of Kuwait Tel: +965 2224 8000 Fax: +965 2242 5828 Email: info@markaz.com markaz.com
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