National Central Cooling Co. (p.s.c.) (tabreed) · DFM:TABREED
National Central Cooling Co. (p.s.c.) (tabreed) — National Central Cooling Company (Tabreed) — 9M 2023 Earnings Presentation
25 slides from National Central Cooling Co. (p.s.c.) (tabreed)'s earnings presentation, Nov 15, 2023
Slide 1: National Central Cooling Company 9M 2023 Earnings Presentation
Essential for progress National Central Cooling Company 9M 2023 Earnings Presentation 15 November 2023
Slide 2: Disclaimer
Disclaimer • These materials have been prepared by and are the sole responsibility of the National Central Cooling Company PJSC, • These materials contain information regarding the past performance of the Company and its subsidiaries. Such performance ‘Tabreed’ (the “Company”). These materials have
Slide 3: Agenda
Agenda 1 Key Highlights & Strategic Progress 4 2 Financial Overview 9 3 Sustainability Overview 13 4 9M 2023 Financial Results 16 5 Outlook and Concluding Remarks 20 Questions & Answers | 3
Slide 4: Key Highlights and Strategic Progress
01 Key Highlights and Strategic Progress Adel Al Wahedi, Chief Financial Officer
Slide 5: Key Highlights – Strong underlying operating and financial performance
Key Highlights & Strategic Progress Key Highlights – Strong underlying operating and financial performance • Connected capacity increased by 3% year-to-date to reach 1.3 million RT Total Capacity Revenue • Expanded regional presence outside GCC with acquisition of a new plant 1,304 k RT AED 1,823 m
Slide 6: Capacity expansion driven by UAE and Saudi
Key Highlights & Strategic Progress Capacity expansion driven by UAE and Saudi Consolidated 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 UAE 724 928 1,025 1,060 1,071 1,077 1,051! Bahrain 28 32 33 34 34 35 35 Oman 32 32 33 52 53 53 53 India - - - - - - 1 Total Consolidated 1,123 992 1,091 1,146 1,158
Slide 7: Value Creation Approach to deliver sustainable shareholder returns
Key Highlights & Strategic Progress Value Creation Approach to deliver sustainable shareholder returns GROW OPTIMIZE INNOVATE • New Connections • Integrated Business Model • Digitization & AI Minimal capex, higher returns In-house project design & delivery, operations Digitization across value chain
Slide 8: Strategic Progress – solid regional platform to grow earnings and dividends
Key Highlights & Strategic Progress Strategic Progress – solid regional platform to grow earnings and dividends Delivering on Securing future Focusing on Generating our growth growth operational strong cash plans excellence flows • Connected 41.3k RT in 9M • Tabreed named preferred • Remote monitori
Slide 9: Financial Overview
02 Financial Overview Adel Al Wahedi, Chief Financial Officer
Slide 10: Proven track record of growth, momentum maintained in 9M 2023
Financial Overview Proven track record of growth, momentum maintained in 9M 2023 Group Connected Capacity1 (kRT) Group Revenue (AEDm) 1,264 1,258 1,304 2,216 1,174 1,210 1,955 213 1,741 75 1,823 965 175 176 196 196 73 1,660 1,520 54 60 170 52 64 1,882 2,141 999 1,034 1,069 1,063 1,091 1,687 1,607 1,
Slide 11: Sustainable earnings with resilient margins
Financial Overview Sustainable earnings with resilient margins • Predictable earnings is driven by long term nature of the contracts AED millions and fixed capacity charges, ensuring a reliable revenue stream 1,232 • EBITDA has grown at a CAGR of 17% over 2019-22, remaining stable 1,033 970 during 9
Slide 12: Robust cash flows underpin ability to deliver attractive shareholder returns
Financial Overview Robust cash flows underpin ability to deliver attractive shareholder returns • Maintained Investment Grade credit rating, underscoring strong creditworthiness and prudent financial management • Net Operating Cash Flows recorded remarkable annual growth of • Gearing ratio improved
Slide 13: Sustainability Overview
03 Sustainability Overview Adel Al Wahedi, Chief Financial Officer
Slide 14: Enabling sustainable use of energy with positive environmental impact
Sustainability Overview Enabling sustainable use of energy with positive environmental impact Exclusive provider of District Cooling services to several iconic Sustainable district cooling solutions enabling significant energy savings projects and prevention of green house gas emissions 2.48 billion
Slide 15: Responsible operations with positive environmental impact
Sustainability Overview Responsible operations with positive environmental impact Pioneered various innovations Commitment towards energy efficiency and optimization Utilization of TSE1 water Pioneering the use of TSE by recycling sewage water which would otherwise be Investment in Construction of n
Slide 16: 9M 2023 Financial Results
04 9M 2023 Financial Results Salik Malik, Vice President - Finance
Slide 17: Income Statement Highlights
9M 2023 Financial Results Income Statement Highlights | 17
Slide 18: Balance Sheet Highlights
9M 2023 Financial Results Balance Sheet Highlights Balance Sheet Breakdown (AED million) Capital Structure Total Assets 6,165 5,831 5,378 5,536 5,155 Net Debt (AED m) Profile 15,451 14,927 2,914 1,773 1,414 Cash & ST Deposits 969 984 457 625 2019 2020 2021 2022 9M 2022 9M 2023 Receivables & others L
Slide 19: Highly cash generative business supports growth, deleveraging & dividends
9M 2023 Financial Results Highly cash generative business supports growth, deleveraging & dividends Free Cash Flows AED 903 m AED millions | 19
Slide 20: Outlook & Concluding Remarks
05 Outlook & Concluding Remarks Adel Al Wahedi, Chief Financial Officer
Slide 21: Capacity Growth Guidance
Outlook Capacity Growth Guidance ▪ New capacity guidance for 2023 and 2024 is 120k RT 2023-2024 Two years guidance kRT ▪ Of the guided capacity, around 60% is expected to be contributed by consolidated entities and balance 40% by 2023 - 2024 Capacity Guidance 120 equity accounted entities 9M 2023 Ac
Slide 22: Q&A
Q&A Otabreed
Slide 23: Appendix
Appendix Otabreed
Slide 24: Other Income and Deferred Tax Liability
Appendix Other Income and Deferred Tax Liability AED millions 9M 2023 9M 2022 Deferred Tax Liability Reported Net Profit to Parent 285 400 • The company recognized deferred tax liability provision of AED 359 million in the third quarter related to intangible assets arising from One-off (gains) / los
Slide 25: Contact Us
Contact Us Tabreed Investor Relations Email: ir@tabreed.ae For more information, please visit www.tabreed.ae/investor-relations Salik Malik Yugesh Suneja Vice President, Finance Head of Investor Relations Tel: +971 2 202 0397 Tel: +971 2 202 0479 Email: smalik@tabreed.ae Email: ysuneja@tabreed.ae
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