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 2023)
36 slides from Kuwait Projects Company Holding (K.S.C.P.)'s debt investor presentation, September 2023
Slide 1: Investor Presentation
Investor Presentation September 2023
Slide 2: Disclaimer
This presentation has been made for informational purposes and does not involve an invitation to subscribe to, purchase, or sell any security. No warranty is given on the accuracy or completeness of the information in this presentation. Independent research is recommended to evaluate and assess the
Slide 3: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS
Slide 4: Our business, strategy and team
Our business, strategy and team Our Business • Investment holding company majority owned by the family office of the Kuwaiti ruling family • Total assets of US$38.7bn1; operating across the GCC and wider MENA region; presence in over 20 countries • Multi-sector operator: commercial banking, petroche
Slide 5: Recent updates
Recent updates Gulf Insurance Group (GIG) sale transaction Merger with QPIC Transaction overview Transaction overview ▪ In April 2023, KIPCO signed a binding agreement to sell KIPCO Group s ▪ In November 2022, successfully merged Qurain Petrochemical stake in GIG to Fairfax for US$860mn i.e. KD2/sha
Slide 6: Key investment highlights
Key investment highlights • Spread across 10 sectors and 20+ countries across multiple industries at different stages in the business life-cycle Diversified • Majority of portfolio in high rated GCC region Portfolio • Benefits from growth and economic diversification in Kuwait and the broader MENA r
Slide 7: Business Overview
BUSINESS OVERVIEW
Slide 8: Diversified portfolio
Diversified portfolio across sectors Healthcare Petrochemical Food & Logistics and Banking AMIB Media Insurance Real Estate Beverages Education Oil Services & Others Equate | TKOC KPPC | TKSC NAPESCO | UOP Each sector s apprx. contribution to portfolio value: 20 - 25% 25 - 30% c.20% 3 - 5% 5 - 7% c.
Slide 9: Supportive shareholders
Supportive shareholders • KIPCO s single largest shareholder is Al Futtooh Holding Company K.S.C. (Closed) (AFH), a Kuwaiti company owned by family office of the Kuwaiti ruling family • Post merger, AFH continues to be the largest shareholder with c.32% ownership • Has supported KIPCO in all its end
Slide 10: Quality assets: market leadership of key portfolio companies
Quality assets: market leadership of key portfolio companies Ethylene glycol producer Conventional bank in Kuwait1 globally2 Insurer in Kuwait3, Bahrain4, Jordan5 & Egypt5 Dairy and food products manufacturer Among top three insurers in MENA region in Saudi6 Leading entertainment company in MENA reg
Slide 11: Controlling or significant stakes in key portfolio companies
Controlling or significant stakes in key portfolio companies * ** Group Effective 62% 6% 45% 41% 91% 56%3 70% 66% 59% 51% Stakes1 Board 8 of 11 1 of 10 4 of 10 5 of 9 5 of 8 4 of 5 3 of 74 5 of 7 4 of 7 4 of 5 Representation Market Cap 2,146 Unlisted 1,633 2,656 1,446 107 Unlisted 225 243 157 (US$mn
Slide 12: Operating performance key highlights 2022 and H1 2023
Operating performance key highlights 2022 and H1 2023 ▪ Stable operating income of US$756mn for FY 2022 and net profit of US$170mn (14.9% growth vs. 2021), supported by improving net interest margins (2.4% vs 2.1% in 2021) Burgan ▪ In Feb 2023, sold its 51.8% stake in Bank of Baghdad to Jordan Kuwai
Slide 13: Operating performance key highlights 2022 and H1 2023
Operating performance key highlights 2022 and H1 2023 ▪ Revenue of US$276mn in 2022 (vs. US$277mn in 2021); net profit of US$11mn* in 2022 (vs. loss of US$16mn in 2021) United ▪ Completed merger of United Towers Holding Company (UTHC) and Al Dhiyafa Holding Company (DHC) on 22 Real Estate December 2
Slide 14: Financials & Liability Management
FINANCIALS & LIABILITY MANAGEMENT
Slide 15: KIPCO consolidated financial performance
KIPCO consolidated financial performance Revenue1 US$ mn Net Profit US$ mn 3,461 82 57 2,350 1,940 34 1,072 18 2021 2022 H1'22 H1'23 2021 2022 H1'22 H1'23 Total Assets2 US$ bn Shareholder s Equity2 US$ mn 37.2 38.7 1,933 1,932 2022 H1'23 2022 H1'23 1Revenue for H1 2023 and H1 2022 may not be compara
Slide 16: Proactive liability management
Proactive liability management KD103.1mn (US$336mn) debut Sukuk issuance in July 2023, under KIPCO s US$2bn international sukuk programme listed on the LSE • This is the first ever KD denominated Sukuk transaction by a Kuwaiti corporate • Provides KIPCO the access to a deep pool of Sharia compliant
Slide 17: Proactive liability management cont'd
Proactive liability management cont d US$525mn senior unsecured facility with an KD165mn (US$538mn) six-year senior unsecured effective tenor of three-year KD denominated bond issue • Signed a US$525mn senior unsecured credit facility with 9 • Issued 6-year KD bond in December 2022 with maturity in
Slide 18: Debt profile
Debt profile Post issuance of Sukuk in July 2023 (US$336mn), and partial prepayment of Syndicated facility (US$330mn) Pro-forma Debt*: US$2,767mn Cash Balance^: US$408mn; Unutilized committed credit lines of US$100mn Debt type Debt maturity 6% 12% 36% 25% 22% 69% 30% EMTN KD Bond Bank Loan Sukuk < 1
Slide 19: Key credit highlights
Key credit highlights Financial Discipline Diversified Leading in Portfolio across Transparency sectors Pan MENA Player Shareholders from Pan MENA Strong Liquidity the Ruling Family Player Market Excellent Leadership Track Record | 19 | 19
Slide 20: Executive management
Executive management Sheikha Dana Nasser Sabah Al Ahmad Al Sabah | Group CEO Samer Subhi Khanachet | Deputy Group CEO Sunny Bhatia | Group CFO Appointed KIPCO s Group CEO in January 2022 and has been a Joined KIPCO as General Manager in 1990. He moved to the United Joined KIPCO in 2022, he is an acc
Slide 21: Thank You
THANK YOU
Slide 22: Appendix
APPENDIX • GROUP COMPANIES PERFORMANCE • MACRO DATA
Slide 23: Burgan Bank
Burgan Bank Business highlights Key franchises • Kuwait based commercial bank with regional presence in five countries Name Market Position Effective Assets1 Revenue4 Stake3 US$ mn US$ mn • 2nd largest conventional bank in Kuwait in terms of assets (US$23.0bn1) • BBB+ rating from S&P, Baa1 from Mood
Slide 24: Equate Group
Equate Group Business highlights Product Mix1 • Kuwait based petrochemical company with operational presence in 11 countries through its subsidiaries • Product portfolio Ethylene Glycol (EG, production capacity of 3.2mn MT), Polyethylene (PE, production capacity of 1mn MT) and Polyethylene Terephtha
Slide 25: Gulf Insurance Group
Gulf Insurance Group Business highlights Key franchises Effectiv • Kuwait-based insurance company with operations in life and non-life as well as Name Market Position e Stake 3 Takaful insurance; market cap of US$1,633mn1 Among Top-5 players • Presence across the MENA region in 13 countries through
Slide 26: SADAFCO
SADAFCO Business highlights Operational highlights • Saudi Arabia-based leading food & beverage company, with operations in Production Manufacturing Jeddah the Middle East and Europe 2 Capacity 626,810 MT Facility • Market leader in KSA s Plain UHT milk, Tomato paste and Ice cream, marketing its cor
Slide 27: United Real Estate Company (URC)
United Real Estate Company (URC) Business highlights Key franchises • Operations across the Middle East region through a mix of fully-owned Country Name of properties properties, subsidiaries and investment arms • Presence across retail, hospitality, residential and office sectors Kuwait KIPCO Tower
Slide 28: United Gulf Holding Company (UGH)
United Gulf Holding Company (UGH) Business highlights Key franchises • Bahrain-based financial services group listed on the Bahrain Stock Effective Assets 1 Revenue1 Name Market Position Exchange Stake 1 US$mn US$mn #1 asset management company in • Activities include asset management, corporate fina
Slide 29: Jordan Kuwait Bank (JKB)
Jordan Kuwait Bank (JKB) Business highlights Operational highlights • Jordan based commercial bank with operations in Jordan, Iraq, Cyprus and Lebanon Branches2 Jordan KIPCO Group • Recently JKB completed the acquisition of 77% stake in BHM capital, UAE 62 51% Stake2 • In Feb 2023, JKB completed the
Slide 30: NAPESCO - National Petroleum Services Company
NAPESCO - National Petroleum Services Company Business highlights Segment information • A Kuwait based leading provider of Upstream Oilfield Services Assets 2 Revenue 3 Segment Description including Cementing, Stimulation, Coiled Tubing, Nitrogen, and US$mn US$mn Downhole Service Tools along with pu
Slide 31: JTC and ATC
JTC - Jassim Transport & Stevedoring Company Business highlights Revenue & Net Profit US$ mn 89 • Kuwait headquartered inland transportation company with operations in 72 Kuwait, Qatar & Saudi Arabia 42 47 • Leading service providers of Ports management, Contract Logistics, Equipment Leasing and Pow
Slide 32: KARO - The Kuwait Aromatics Company
KARO - The Kuwait Aromatics Company Business highlights Operational highlights • Kuwait based holding company with aromatics production facilities through its subsidiaries KPPC and TKSC Production Benzene 393,000 MT • It is involved in manufacturing of Paraxylene, Benzene and Capacity Styrene Paraxy
Slide 33: OSN
OSN • General entertainment platform in MENA, operating across multiple platforms: ▪ Over-the-top streaming (OTT) ▪ Direct-to-home (DTH) ▪ Cable fibre & Internet Protocol television (IPTV) ▪ Business - Large commercial setups & hotels • Premium content: ▪ 68 channels (including 50 HD channels and 20
Slide 34: United Education Company (UEC)
United Education Company (UEC) • KIPCO Group owns 64% stake in UEC • It owns, develops, manages and operates K-12 and higher education institutions in Kuwait • Leading schools/ colleges, imparting quality education across multiple curriculums, to the students of various nationalities • Combined capa
Slide 35: Kuwait fundamentals remain strong
Kuwait fundamentals remain strong Increased production coupled with surge in oil prices boosted the oil Vey low public debt at 3.0% of GDP (2022) and 2.9% (2023F) revenues Higher oil prices, expansionary fiscal policy, increased traction One of the highest rated sovereigns on projects implementation
Slide 36: GCC macro outlook and sovereign wealth funds
as well as for the GCC, though outlook is cautious due to global developments Nominal GDP (US$ Bn, 2023E) Real GDP Growth (% yoy, 2023E) Gross debt (% GDP, 2023E) KSA 1,062 KSA 3.1 KSA 24 UAE 499 UAE 3.5 UAE 31 Qatar 220 Qatar 2.4 Qatar 46 Kuwait 165 Kuwait 0.9 Kuwait 3 Oman Oman 1.7 Oman 43 105 Bah
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