C&i Leasing Plc · NSENG:CILEASING
C&i Leasing — Investor Forum (November 2018)
36 slides from C&i Leasing's conference presentation, Nov 8, 2018
Slide 1: C&I Leasing Plc Investor Forum
C&I LEASING PLC Investor Forum 8 November 2018 w w w. c - i l e a s i n info@c-ileasing.co g.com m
Slide 2: Outline
Outline 1 About C&I Leasing Group 4 2 9M 2018 Financial Snapshot 12 3 Group Financial Performance Review 16 4 Strategy & Outlook 24 5 Appendix 27 5 2 w w w. c - i l e a s i n info@c-ileasing.co g.com m
Slide 3: About C&I Leasing Group
About C&I Leasing Group Andrew Otike- Odibi 3 w w w. c - i l e a s i n info@c-ileasing.co g.com m
Slide 4: C&I Leasing Plc
C&l Leasing Plc A leasing and ancillary company Incorporation The company has operational offices in key locations in Nigeria ,Ghana & UAE C &I leasing Plc was incorporated in 1990 and licensed by CBN. listed on the Nigerian Stock Exchange in 1997 Locations your preferred business partner
Slide 5: About 5,000 persons staff strength
About 5,000 persons 3 Staff strength (Outsourced and core staff) Our brand presence can be felt in major sectors in the Operations 4 Nigerian economy, providing specialized services from Oil & Gas to Telecoms, Hospitality, FMCG, Finance etc. w w w. c - info@c- ileasing.com ileasing.com
Slide 6: Subsidiaries
Subsidiari C & I Leasing Group Ghana UAE Nigeria EPIC C& I es Leasafric 71% FZE* Leasing Plc 100% 100% Fleet Management Marine Fleet Management Business Units Personnel Outsourcing Marine *EPIC FZE is incorporated in the free trade zone of UAE for tax benefit purposes. All the vessels and operations
Slide 7: Current Marine business
Current Marine business C&I Marine is a division of C&I Leasing Plc that manages and operates all the offshore support vessels and related marine services contract with oil majors in the Nigerian offshore sector. • 20 owned vessels on long term fixed contract (2 new vessels were deployed in October
Slide 8: C&I Outsourcing business
Outsourcing C&I Outsourcing business • C&I Outsourcing Ltd is a licensed provider of manpower recruitment, training, personnel outsourcing and human resource consultancy services. • We currently manage over 5,000 professionals(monthly turnover slightly above ½ billion) that are spread across several
Slide 9: Fleet management & Car rental business
Fleet management & Car rental business • The company currently manages over 1,500 vehicles with professional chauffeurs around the country; offering operate and maintain services on 3-4 year fixed contract with blue chip companies, pool car services, pick up and drop off, Airport shuttle and daily r
Slide 10: Leasafric Ghana
Leasafric Ghana • Leasafric is a subsidiary of C&I Leasing Plc, in Ghana. • It is the largest leasing company in Ghana and provides professional lease options for individuals and corporate bodies with fleet size over 1,000 vehicles w w w. c - info@c- ileasing.com ileasing.com
Slide 11: Epic International FZE - UAE
Epic International FZE - UAE • The company was incorporated on 15th June 2011, as a free Trade zone establishment in United Arab Emirates and licensed to trade in supply of vessels, its parts, component and automobile. • Through EPIC, we have been able to take advantage of cheaper sources of financi
Slide 12: Breakdown of business segment for C&I Leasing Plc
Breakdown of business segment for C&I Leasing Plc (Company) Fleet Personnel Marine Management Outsourcing Providing Car rental Leading Nigerian Content Human resource solutions services with its Hertz Car player in the offshore marine (personnel management, Rental franchise, as well as vessel space.
Slide 13: An industry with good growth prospects
An industry with good growth prospects Opportunities Challenges/Threats Leasing industry expected to blossom, owing to Non-availability of long-term, low-cost funding has the various initiatives of Government aimed contributed majorly to the decline of equipment at reflating the economy and the
Slide 14: A solid investment proposition focused on long-term growth
A solid investment proposition focused on long-term growth High quality Strong and Strong Good security borrower stable competitive structure management positioning team across all Transparent Able to achieve Allows the Group to segments Long-term structure of revenue lower weighted continue to expa
Slide 15: Client snapshot: diversified and high-quality client base
Client snapshot: C&I Leasing PLC has a diversified and high- quality client base Revenues by sector for 9M 2018 5% 3% 7% 7% 14% 64% OIL & GAS FIN SERVICES MANUFACT. TELECOM POWER OTHERS 1 w w w. c - i l e a s i n info@c-ileasing.co 5 g.com m
Slide 16: Overview of the C&I Leasing Group structure
Overview of the C&I Leasing Group structure Compan Parent C&I Leasing Group y Ghana: Leasafric Nigeria: C&I Subsidia UAE: Epic FZE* ries (71%) Leasing Plc (100%) (100%) (89 staff) (553 staff) Fleet Mgt Marine Fleet Mgt** Business Units PBT: N188.8mm PBT: N1013.9mm PBT: N326.5mm ROE: 10% ROE: 31% ROE
Slide 17: Overview of EPIC FZE (UAE) and Leasafric (Ghana)
Overview of EPIC FZE (UAE) and Leasafric (Ghana) EPIC FZE Leasafric Marine Fleet Management EPIC trades in ships and boats, its parts, Leasafric currently has a fleet size of over 900 components and automobile. It is incorporated as vehicles with a wide network of clients across the a free zone esta
Slide 18: 9M 2018 Snapshot
9M 2018 Snapshot Alex Mbakogu w w w. c - i l e a s i n info@c-ileasing.co g.com m
Slide 19: Improving macroeconomic and regulatory environment but challenges persist
Improving macroeconomic and regulatory environment but challenges persist GDP y-o-y growth (%) Inflation growth rate (%) 6 20 15 3 10 0 5 -3 0 15 15 16 16 16 16 17 17 17 17 18 18 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 15 15 16 16 16 16 17 17 17 17 18 18 18 3 4 1 2 3 4 1 2 3 4 1 2 3 Q Q Q Q
Slide 20: 9M 2018 key highlights
9M 2018 key highlights Gross earnings of N19.9 billion, up 15.6% y-o-y, driven by an increase in lease rental income (+17.5%), representing 70% of the total gross earnings for the nine months period, on the back of volume increase in the fleet and marine business Net operating income of N5.7 bil
Slide 21: 9M 2018 key performance indicators
9M 2018 key performance indicators Gross Earnings Total Assets N19.9 billion 15.6 N58.1 billion 29.2% 9M17: N17.2 billion % FY17: N45.0 billion Cost to Income Ratio Total Debt 39.2% 10bps N35.0 billion 21.1% 9M17: 49.2% FY17: N28.9 billion EBITDA margin Shareholder’s Funds 36.5% 10bps N10.0 billion
Slide 22: Group Financial Performance Review
Group Financial Performance Review w w w. c - i l e a s i n info@c-ileasing.co g.com m
Slide 23: Demand for the Fleet and Marine Services drive top line growth
Demand for the Fleet and Marine Services drive top line growth • Gross earnings increased by Income Statement Highlights (N’000) 15.6% to N19.9 billion from N17.2 billion in 9M 17 driven by 9M 2017 9M 2018 the growth in lease rental %Δ (N’000) (N’000) income (+17.5% y-o-y), on the back of volume inc
Slide 24: Improving performance despite the challenging operating environment
Improving performance despite the challenging operating environment Gross Earnings (N, billions) 25 +15.6% 20 20 15 17 +25.7 10 % 5 6 6 7 6 4 0 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 9M 17 9M 18 Gross earnings increased by 15.6% from N17.2bn in 9M17 to N19.9bn in 9M18 driven by : • The growth in lease rental
Slide 25: Notable improvement in operational efficiency across the Group
Notable improvement in operational efficiency across the Group Indirect Operating Expenses* (N, millions) -0.1% 2,000 100% 1,800 - 85% 23.9% 1,872 1,600 1,854 1,400 57% 1,200 47% 47% 1,000 47% 39% 50% 800 813 27% 600 683 671 400 657 200 500 - 0% Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 9M 17 9M 18 Indirect Ope
Slide 26: Profitability improves following strong operating performance
Profitability improves following strong operating performance and effective cost saving initiatives Profit Before Tax (N, millions) +11.4 1,400 [y-o-y growth] % 1,200 1,290 +4.3 1,157 1,000 % 800 600 542 566 400 406 318 200 0 105 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 9M 17 9M 18 • Group PBT increased by 11.
Slide 27: Balance sheet snapshot
Balance sheet snapshot • As at the end of September 2018, total Summary Balance Sheet (N’000) assets were up by 29% from December 2017 due to growth in operating lease 31 Dec 2017 30 September assets, proceeds from Bond issuance, %Δ (N’000) 2018 (N’000) trade, and finance leases, as well as other re
Slide 28: Balance sheet growth in line with business expansion
Balance sheet growth in line with business expansion Total Assets (N, billions) • Total assets grew from N45.0bn as of December 2017 70 +29.2 to N58.1 as of September 2018, largely due to the % growth in operating lease assets, proceeds from Bond 60 +17.2% issuance, trade, and finance leases, as wel
Slide 29: Well-diversified and stable funding base
Well-diversified and stable funding base Debt Maturity Profile (N, billions) • A substantial portion of the Company's assets are funded 20 by borrowings from financial institutions. These 18 borrowings are widely diversified by type and maturity 16 17 18 and represent a stable source of funds 14 • S
Slide 30: Strategy & Outlook
Strategy & Outlook Andrew Otike- Odibi w w w. c - i l e a s i n info@c-ileasing.co g.com m
Slide 31: Strategic plans
Strategic plans EFFICIENCY C O S T Improve on implemented cost optimisation initiatives Maintain operating expense growth rate below inflation rate Seek opportunities for growth to improve visibility to customers and potential business partners OPERATIONS Digitise operations & entrench collaboration
Slide 32: FY 2018 Guidance
FY 2018 Guidance FY FY FY FY 9M METRICS 2016 2017 2017 2018 2018 Guidan Actual Guidan Actual ce ce Return on 13% 13% 12% 14% 12% Equity Net Profit 6% 5% 5% 6% 6% Margin EBITDA Margin 35% 36% 36% 36% 37% Asset Turnover 50% 50% 51% 61% 39% ROC 19% 57% 21% 29% 17% E Growth OPEX 15%* 15%* 22%* 14-15%* 1
Slide 33: Appendix
Appendix w w w. c - i l e a s i n info@c-ileasing.co g.com m
Slide 34: Key Shareholders / Board of Directors
Key Shareholders / Board of Directors Chairman Vice Chairman MD / CEO Chief Chukwumah. H. Chukwuemeka Ndu Andrew Otike-Odibi Okolo Leadway Out ABRAAJ Petra Credit Assurance Consortium Advisers Alliance Properties Company Finance Nigeria Financial Ltd. Limited Limited Custodian & Allied Insurance 34
Slide 35: Management
Management MD / CEO Chief Financial GM Marine Group Head HR GM Leasafric Andrew Otike- Officer Wisdom Nwagwu Maureen Ghana Odibi Alex Mbakogu Ogbonna Kalu. O. Kalu Head Hertz/Fleet Head, C&I Outsource & management Training Ayodele Johnson Babatunde Chiobi Ikechukwu Edwin Head Information Head Human
Slide 36: Contact
Contact +234 8034070554 +234 903 777 5833 andrew.otike-odibi alex.mbakogu@c-ileasing.co @c-ileasing.com m 3 w w w. c - i l e a s i n info@c-ileasing.co 6 g.com m