Kuwait Projects Company Holding (K.S.C.P.) · KSE:KPROJ
Kuwait Projects Company Holding (K.S.C.P.) — Kuwait Projects Company Holding (KIPCO) — Debt Investor Presentation (September 2014)
36 slides from Kuwait Projects Company Holding (K.S.C.P.)'s debt investor presentation, September 2014
Slide 1: Building Momentum
Building Momentum D Debt Presentation | September 2014 1
Slide 2: Disclaimer
Disclaimer This presentation is not an offer or invitation to subscribe to or purchase any securities. No warranty is given as to the accuracy or completeness of the information in this presentation. You must make your own independent investigation and appraisal of the business and financial conditi
Slide 3: Index: Key Investment Highlights
Index Key Investment Highlights 3
Slide 4: Our Business, Strategy and Team
Our Business, Strategy and Team Our Business AUM of USD38bn Present in 19 MENA countries Mainly financial services and media; profitable for the last 22 consecutive years Our Strategy Controlling stakes in operating businesses in growth markets Seek to generate sustainable and predictable operating
Slide 5: Key Investment Highlights
Key Investment Highlights Sustained profitability since last 22 years Proven Track Record 12 years of continuous dividends Al Futtooh Investments (AFH) owned by members of Kuwaiti ruling family have a Ruling Family controlling stake ~ 45% Shareholders Shareholders since 1998; have supported KIPCO in
Slide 6: Index: Business Overview
Index Business Overview 6
Slide 7: Building Businesses
Strategic roadmap Regional MENA Outlook Investing in Target engines of ROE: growth 20% Diversified Revenue streams Balanced Building Portfolio Businesses Strong managerial Team expertise Thought Approach leadership Being first in the region Investment in companies with sustainable and predictable ca
Slide 8: Our presence by geographies & sectors
Our presence by geographies & sectors Major Sectors Geography Commercial Revenue1 Media AMIB Insurance Real Estate Industrial Others banking (2013) Kuwait ● ● ● ● ● ● ● 42% UAE ● ● ● ● 6% Bahrain ● ● ● ● 2% KSA ● ● ● 6% Jordan ● ● ● ● 12% Algeria ● ● 6% Tunisia ● ● ● 2% Egypt ● ● ● ● 7% Lebanon ● ●
Slide 9: Core Holdings
Core Holdings KIPCO: All core holdings are market leaders in their space #2 conventional bank #1 Digital satellite premium #1 Insurer in Kuwait3, Bahrain4 , in Kuwait1 Pay TV operator2 in MENA Jordan4 & Egypt5 region #1 Asset Manager in Kuwait with #2 listed real estate Leading industrial company In
Slide 10: Controlling or majority stakes
Controlling or majority stakes Main Entities KIPCO Effective 57.6% 60.5% 96.3% 82.7% 3 45.3% 65.4% Stakes1 Board Representation 6 of 9 2 of 75 6 of 6 6 of 6 4 of 104 4 of 7 Market Cap (USDmn)2 3,235 Unlisted 505 102 375 460 S&P: S&P: A- Credit BBB+/A2 Moody’s: Unrated CI*: BBB CI*: BBB- AM Best: CI*
Slide 11: Supportive Shareholder With Ruling Family Links
Supportive Shareholder With Ruling Family Links Shareholding Profile Kuwaiti Ruling Family Support Treasury KIPCO’s principal shareholder is Al Futtooh Holding Company Shares K.S.C. (Closed) (“AFH”), a Kuwaiti company owned by 2% Primary members of the Kuwaiti ruling family HNIs & Retail Shareholder
Slide 12: Index: Key developments & Performance Update
Index Key developments & Performance Update 12
Slide 13: 2013: Operating performance continued to be strong
2013: Operating performance continued to be strong Growth % are over 2012 144% 2012 5.6% 2012 33% 175% 25% 35% 29% 81% 18% 3.4% Growth in Growth in NPA Aggregate Growth in Growth in Growth in EBITDA operating operating provision subscriber revenue EBITDA margin income profits coverage base Interest
Slide 14: Burgan Bank (BB)
Burgan Bank (BB) Business highlights Key Subsidiaries Market Cap % Kuwait based commercial bank with a Name Market Position Country (USDmn) 1 Stake2 regional presence in nine countries # 3 bank in Jordan in 2nd largest conventional bank in Kuwait terms of net credit 508 Jordan 51% facilities in
Slide 15: Burgan Bank: Regional operations
Burgan Bank: Regional operations Loan Growth Deposit Growth Net Profit^ USDbn USDbn USDmn 44% 29% 22% 37% 28% 17% 5.9 7.0 70 6.0 61 4.8 35 2.5 24 1.2 1.8 1.9 2.0 2.2 2.4 1820 1.4 1.3 1.5 8 11 0.9 0.03 1.1 1.0 0.3 1.4 5 0.2 0.2 0.02 0.3 4 8 (3) AGB JKB BOB TIB BBT Total AGB JKB BOB TIB BBT Total AGB
Slide 16: Burgan Bank: NPA cyclical & not structural
Burgan Bank: NPA cyclical & not structural NPA Trend NPA (USDmn) As on Jun’14, the combined NPA Ratio (Percentage) coverage of non performing 1,113 847 1,284 948 670 793 256 assets (NPA) is 165% 207 192 172 170 121 122 110 NPA Ratio increased from 1 1 .0 % 1 1 .8 % 90 9 .5 % 1 0 .5 % 6 .3 % 6 .0
Slide 17: OSN: Overview
OSN : Overview MENA Pay TV Potential MENA Region1 Latin America UK India US 2 Population (Mn) 267 593 65 1,260 319 Pay TV (Mn; Est.) 4 37 14 133 102 2 TV Households (Mn) 53 NA 26 155 116 TV Households / Households (%) 85% NA 94% 61% 88% Pay TV/ TV Households (%) 9% 30% 53% 86% 88% Low Pay TV penetra
Slide 18: OSN: Overview…cont'd
OSN: Overview…cont’d Overview Pan Arab reach Largest premium Pay TV operator in MENA region (HQ in Dubai), created by the merger of Syria Tunisia Showtime and Orbit in 2009 Lebanon Palestine Iraq Iran Morocco Jordan Kuwait Licensed to operate in 24 countries in MENA A lgeria Lybia Bahrain Western wi
Slide 19: Operating and financial performance
Operating and financial performance Subscribers Net Adds Thousand Thousand 260 1,080 995 818 170 99 734 132 564 161 84 85 2011 2012 2013 H1'13 H1'14 2011 2012 2013 H1'13 H1'14 Churn Diversified subscriber base (June 2014) Percentage Subscribers: 1,080K Others 22% 9% 19% Qatar KSA 17% 16% 17% 14% 26%
Slide 20: United Gulf Bank (UGB)
United Gulf Bank (UGB) Business highlights Key Subsidiaries and Associates Market Bahrain-based financial services group Name Market Position Cap Country % Stake 2 listed on the Bahrain and Kuwait Stock USDmn1 Exchange #2 asset management Activities include asset management, company in Kuwait by
Slide 21: Gulf Insurance Group (GIG)
Gulf Insurance Group (GIG) Business highlights Key Subsidiaries and Associates Market Cap Kuwait-based insurance company Name Market position USDmn1 Country % Stake2 listed on the KSE #1 by GPW 122 Bahrain 56% Presence across the MENA region Wide range of conventional and #1 by technical Unlisted Eg
Slide 22: United Real Estate Company (URC)
United Real Estate Company (URC) Business highlights Operations across the Middle East region through Country Key Projects a mix of fully-owned properties, subsidiaries and KIPCO Tower, Al Shaheed Tower, Marina World, Kuwait investment arms Marina Hotel, Saleh Shehab Stable rental income; Rental inc
Slide 23: KIPCO Consolidated: Financial performance
KIPCO Consolidated: Financial performance Revenue Net Income Consolidated Assets USDmn USDmn EPS (Cents) USDbn 8.6 8.3 10.4 4.5 5.4 32.2 30.6 1,961 142 25.5 112 1,468 106 20.7 1,245 1,024 77 866 64 2011 2012 2013 H1'13 H1'14 2011 2012 2013 H1'13 H1'14 2011 2012 2013 H1'14 23
Slide 24: Index: Debt Metrics
Index Debt Metrics 24
Slide 25: KIPCO (Parent): Debt Metrics
KIPCO (Parent): Debt Metrics (USDmn) Financial 31 December 31 December KIPCO (Parent) 30 June 2014 Targets 2012 2013 Cash & Cash Equivalents 634 508 1,066 Gross Debt 1,413 1,417 1,917 Net Debt 778 909 850 Shareholders’ Equity 1,951 1,987 2,021 Net Parent Debt / Shareholders’ Equity <2.5x 0.40x 0.46x
Slide 26: KIPCO Parent: Significant Cash Coverage till 2018
KIPCO Parent: Significant Cash Coverage till 2018 Current cash sufficient to meet all debt Debt obligations till Coverage Infinite 1.4x Infinite 2.0x Dec’2018 USDmn 2014 2015 2016 2017 2018 Cash Debt No debt due in near term Cash Coverage of Debt: Available Cash / Debt due in the year 26 Note: H1’14
Slide 27: KIPCO Parent debt profile: As at 30 June 2014
KIPCO Parent debt profile: As at 30 June 2014 Debt Type Debt Maturity Total Debt: USD1.9bn Total Debt: USD1.9bn Average debt maturity is International 3.9 years Bonds Local 78% Bonds 15% 15% 33% 52% 7% Term <2 Years 2-4 Years >4 Years Loan Liquidity KIPCO has cash & bank balance of USD1,066mn with n
Slide 28: Index: Why KIPCO
Index Why KIPCO 28
Slide 29: Why KIPCO
Why KIPCO Proven strategy and Prudent financial experienced management management Team Resulting in strong liquidity with Little impact of recent turmoil in no refinancing risk the region on our businesses Group transparency Operating performance well recognized by of our businesses investors contin
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Slide 31: Index: Annexure
Index Annexure 31
Slide 32: United Industries Company (UIC)
United Industries Company (UIC) Business highlights Key Investments Market Established in 1979, UIC operates as a holding Name Sector Country Cap % Stake2 company for the Group’s industrial investments USDmn1 UIC’s mission is to manage a diversified portfolio of investments in the energy, food & bas
Slide 33: URC: Balance Sheet (Break-up) as of June 2014
URC: Balance Sheet (Break-up) as of 30 June 2014 Total Assets Investment Properties Total Assets USD1,743m n Total: USD425m n Marina World - Kuwait Investm ent properties 2% 2% 10% Land for development 3% 2% Salalah Mall - Oman 24% 5% Projects under Marina Plaza - Kuwait 13% construction* 8% Fixed a
Slide 34: OSN: Acquisition of Pehla
OSN: Acquisition of Pehla Continued consolidation of MENA Pay TV 2009 2011 2013 + OSN acquired exclusive Orbit & Showtime rights from ART for select OSN acquired merged to form OSN General Entertainment Pehla channels Pehla acquisition presents a huge opportunity Deeper and bigger base: Total South
Slide 35: KIPCO: Huge Value Potential for Investors
KIPCO: Huge Value Potential for Investors No Repayment risk Has sufficient cash to service all debt obligations till Sep 2018 (2.0x coverage) Proactive liability Minimal credit management risk and strong Strong secondary market performance Average debt maturity investor of bonds of 3.9years confiden
Slide 36: Kuwait Development Plan Overview
Kuwait Development Plan Overview Purpose: Development Budget By Sector − Upgrade infrastructure − Diversify non oil revenue 7% − Create employment 14% Oil & Gas − Develop private sector Overview Utilities USD125bn − USD125bn 5 year plan Real Estate & Construction 18% 61% − FY 2010/11 – Budgeted
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