National Central Cooling Co. (P.S.C.) (Tabreed) · DFM:TABREED
National Central Cooling Co. (P.S.C.) (Tabreed) — National Central Cooling Company PJSC (Tabreed) — Q3 2010 Earnings Presentation
22 slides from National Central Cooling Co. (P.S.C.) (Tabreed)'s earnings presentation, Nov 10, 2010
Slide 1: Q3 10 Results Presentation
Tabreed Q3 10 Results Presentation 10 November 2010
Slide 2: Disclaimer
Disclaimer • These materials have been prepared by and are the sole responsibility of the National Central Cooling Company PJSC, ‘Tabreed’ (the “Company”). These materials have been prepared solely for your information and for use at the presentation to be made on 10 November 2010. By attending the
Slide 3: Agenda
Agenda • Overview • Operational Review – Sujit Parhar • Financial Review – Steve Ridlington • Update on Recapitalization program – Steve Ridlington • Summary – Sujit Parhar • Q&A 3
Slide 4: Overview
Overview • Strong 9M 10 results demonstrate strength of underlying business • Group revenue of AED 710.9m – up 25% over 9M 09 – Strong contribution from Chilled Water (+92%) • Reported net profit attributable to parent up 115% to AED 115.7m • Five new plants and two expansion plans came online in Q3
Slide 5: Operational Review
Operational Review Sujit Parhar CEO 5
Slide 6: 9M 10 Operational Achievements
9M 10 Operational Achievements Chilled Water • Five new plants and two expansion plans came online during the third quarter and several new customers were connected • Total installed cooling capacity increased to 541,525 tons across 49 plants • Revenue and gross profit up 92% and 87% respectively Co
Slide 7: Significant Capacity Roll-out
Significant Capacity Roll-out • 1H 10 saw eight plants come online with installed capacity of 54,525 RT • A further five plants and two expansion plans came online in Q3 10 with installed capacity of 101,275 RT • An additional three plants with installed capacity of 18,000 RT are under construction
Slide 8: UAE Operational Plants
UAE Operational Plants • In total 101,275 RT of gross capacity came online in Q3 10, increasing capacity to 541,525 RT* (gross) across 49 plants – Total billed capacity of chilled water in Q3 10 was (gross) 451,873 and 387,717 for the Chilled Water segment – Average reliability of 99.99% Q3 2010 • T
Slide 9: Chilled Water - Strategy Delivering
Chilled Water - Strategy Delivering • Focus on core chilled water, delivering the build out and selling capacity • Strong growth in Chilled Water EBITDA – approaching 80% of total EBITDA in Q3 10 • Chilled Water Revenue per tonne rising to AED 545 as at end September 10 • Utility Efficiency gains –
Slide 10: Financial Review
Financial Review Steve Ridlington CFO 10
Slide 11: 9M 10 Financial Highlights
9M 10 Financial Highlights Consolidated results for 9M 10 Key Figures – Un-audited Consolidated Financials • Group revenue of AED 710.9m 9-months – Strong contribution from Chilled Water (+92%) ending 30 September All figures in AED m 9M 10 9M 09 • Gross Profits of AED 332.7m up 28% on 9M 09 Revenue
Slide 12: Chilled Water (70% of Revenue)
Chilled Water (70% of Revenue) Key Metrics • Revenue sharply higher (AED m) 9M 10 9M 09 % Change – 13 new plants have come online since 9M 09 – Billed capacity increased to 387,717 RT Revenues 497 258 92% • Costs increased due to plant ramp up stage partly offset by Cost (260) (132) 97% utility effi
Slide 13: Contracting (16% of Revenue)
Contracting (16% of Revenue) Key Metrics * (AED m) 9M 10 9M 09 % Change • Sales of AED 134m mainly due to GES projects on Sowwah Revenues 134 138 (2%) Island and Shams Cost (106) (105) 1% • Gross profit and GP margin in 9M 10 lower due to reduced margins on new contracts Gross Profit 28 33 (14%) • E
Slide 14: Manufacturing (7% of Revenue)
Manufacturing (7% of Revenue) Key Metrics • Revenues decreased by 50% over very high levels in H1 (AED m) 9M 10 9M 09 % Change 09 driven by economic downturn and resultant fall in order books. Revenues of AED 23m in Q3 10 vs. AED 13m Revenues 65 130 (50%) in Q3 09 Cost (46) (85) (45%) • Costs declin
Slide 15: Services (7% of Revenue)
Services (7% of Revenue) Key Metrics • Sales decreased by 11% in 2009 reflecting slowdown in the (AED m) 9M 10 9M 09* % Change real estate sector Revenues 58 65 (11%) • Costs increased by 16% over 9M 09 Cost (9) (8) 16% • Gross margins fell to 85% from 88% in 9M 09 driven by the Gross Profit 49 57 (
Slide 16: Amendment to Depreciation Methodology
Amendment to Depreciation Methodology • Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets • Previously: ― Plant equipment and buildings assumed to have useful life of 30 years ― Pipeline networks useful life of 50 years • Modified calculation methodolo
Slide 17: Update on Recapitalization Program
Update on Recapitalization Program Steve Ridlington CFO 17
Slide 18: Update on Recapitalization Process
Update on Recapitalization Process Recapitalisation Process Objectives Status Shareholders Obtain approvals for resolutions at EGA: • AGA and EGA held and resolutions approved • Continuation of business • Subject to regulatory approval, Tabreed intends to reduce the Company’s • Authority to director
Slide 19: Summary
| I * a oe fl tabreed Summary Sujit Parhar CEO 19
Slide 20: Summary
Summary • Robust 9M 10 results announced – Sales of AED 710.9 million – Gross Profit of AED 332.7 million – Net Profit of AED 123.2 million (Tabreed’s share 115.7m) • Strong cash generating capability – EBITDA of AED 269m • Further progress made on recapitalization program • Focus remains on deliver
Slide 21: Q&A
IE et fl tubieed Q&A 21
Slide 22: Contact Details
Contact Details For further information please contact Kalpesh Shah kshah@tabreed.com +971 2 645 5007 22
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