Kuwait Projects Company Holding (K.S.C.P.) · KSE:KPROJ
Kuwait Projects Company Holding (K.S.C.P.) — Kipco — Investor Presentation (May 2024)
43 slides from Kuwait Projects Company Holding (K.S.C.P.)'s investor presentation, May 21, 2024
Slide 1: Investor Presentation May 2024
Slide 2: Disclaimer
This presentation is not an offer tosubscribe to or purchase any securities. No warranty is given as to the accuracy or completeness of the information on this presentation. You must make your own independent investigation and appraisal of the business and financial condition of KIPCO. Nothing in th
Slide 3: Overview
OVERVIEW
Slide 4: Gateway to MENA with superior access to opportunities
SIZE GEOGRAPHY SECTORS TRACK RECORD MERGER Gateway to MENA with superior access to opportunities
Slide 5: OSN+ and Anghami transaction completion and GIG sale
▪ In April 2024, KIPCO announced the completion of OSN+ and Anghami (NASDAQ: ANGH) transaction ▪ OSN now owns 55.45% of Anghami, which comprises OSN+ streaming along with Anghami’s music platform ▪ The combined entity brings together OSN+’s premium and exclusive library of 18,000 hours of video cont
Slide 6: Diversified portfolio across sectors
Diversified portfolio... iKIpco gad KIPCO cross sectors f— f ’ f— YY f- > f > ( a ( a Petrochemical Food & Healt ncats and Banking F AMIB Media ogistics Real Estate Oil Services leverages Education & Others Equate | TKOC Damn ses Vf ar KPPC | TKSC . S KK MCcO ofn (ii NAPESCO | UOP pao ‘JORDAN KUWAIT
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Slide 8: Quality assets: market leadership of key portfolio companies
Quality assets : market leadership of key portfolio companies Conventional bank in Kuwait! #2 Poo eats Dairy and food products manufacturer in Saudi} - Listed real estate player on Boursa Kuwait? | ii 7 Leading provider of Upstream % Oilfield Services @ Leading service provider for ports rite oma ma
Slide 9: Controlling or significant stakes in key portfolio companies
Controlling or significant stakes in key portfolio companies gous KIPCO ot cay ee omeps st Se ia KAMCO oft) la Qe IC Group Effective 62% 6% AN% 91% 56%? 70% 63% 60% AM% Stakes! Board —_ _ _ _ _ _ _ Representation Majority Note 4 Majority Majority Majority Note5 Majority Majority Majority Melsemar 21
Slide 10: Competence, Integrity, Sustainability
Action- Competence Integrity Sustainability Innovation Accountability Orientation
Slide 11: Strategy
Strategy KIPCO gous Building Businesses Maximize value from businesses with a medium to long-term horizon Partner with global or local businesses with a proven track record Seek to generate sustainable, predictable operating cash flows and ROE over the business cycle Controlling or significant stake
Slide 12: Investment framework
Investment framework ay Value Chain Selection eS » Focus on ‘what we » Regional » Support business » Control / strong » Medium to long gau4 know understanding and growth influence term horizon » Invest with CESSES WO GATED » Provide strategic » Attract best talent » Flexible approach Kl PCO financia
Slide 13: Sector focus
gau4 Sector focus KIPCO As we work to drive sustainable growth & enhance stakeholders’ value, we focus on following sectors: Digitization of services & enhanced technical infrastructure across all sectors petochemic> [nteallin (2 eétneetiiem _ 2 . Services Qu —.|| Sm Ae coe | WE 5 4 EQUATE United Re
Slide 14: Portfolio companies and year of acquisition of control
* Represents the year when KIPCO Group acquired significant control of the entity / the entity started operations 1Trailing 12 months
Slide 15: Supportive shareholders
. gou5 Supportive shareholders iIPcO * 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 i
Slide 16: Performance Update
PERFORMANCE UPDATE
Slide 17: Operating performance and key highlights
Operating performance and key highlights K Burgan Bank SADAFCO Dern BURGAN BANK Qu 2024: Operating income increased to USS174mn (7.4% growth vs. USS162mn in Qi 2023), net profit increased to US$33mn (33.9% higher vs. US$25mn in Qi 2023) mainly on the account of higher other income and lower taxes ar
Slide 18: Operating performance and key highlights
Operating performance and key highlights K United Real Estate Company United Gulf Holding Company Qi 2024: Revenue declined by 14.6% to US$65mn (vs. US$76 in Qi 2023) primarily on account of lower contracting and services revenue; net profit of US$6.7mn (1.0% higher vs. net profit of US$6.6mn in Qi
Slide 19: KIPCO consolidated financial performance
KIPCO consolidated financial performance Revenue! US$ mn 4,181 3,400 1,006 2022 2023 Q1'23 Total Assets US$ bn 401 407 2023 Q1'24 gous KIPCO Net Profit! US$ mn 98 82 V7 19 2022 2023 Q1'23 Q1'24 Shareholders’ Equity US$ mn 1,989 2,006 2023 Q1'24 ‘Numbers for FY 2023 and FY 2022 may not be directly co
Slide 20: Why KIPCO
Slide 21: Why KIPCO
Why KIPCO Kimo Experienced Compelling strategy $ ; 5 management team Outstanding track % Pan MENA Player Supportive major record shareholders Transparent ZB) 3 Diversified portfolio B with market leadership KIPCO on a path to a stronger growth 21
Slide 22: Executive management
Executive management Sheikha Dana Nasser Sabah Al Ahmad Al Sabah | Group CEO Appointed KIPGO's Group CEO in January 2022 and hes been a Board Member since 2020. She is the Founder and Chair Of the Board of Trustees of the American University of Kuwait (AUK) anc) the Chaupersenol UntesEdacation Compa
Slide 23: Group company CEOs
Antoine Jean Patrick Stillhart Mazen Issam Daher CEO Hawwa Group CEO Group CEO Faisal Mansour Haethum Buttikhi Hussain A. Lalani CEO CEO Sarkhou CEO http://www.jtckw.com Joe Kawkabani Muhaiman Ali Al Adel Kohari CEO Behbehani CEO CEO Ghassan Mamlouk CEO
Slide 24: KIPCO
g4u45 KIPCO i at i ala 7, =z
Slide 25: Appendix
APPENDIX GROUP COMPANIES’ PERFORMANCE KEY MILESTONES ESG INITIATIVES MACRO DATA
Slide 26: ✓ ▪ ✓ ▪ ✓ ✓ ▪ ✓ ▪ ✓ ▪ ✓ ▪ ✓
✓ ▪ ✓ ▪ ✓ ✓ ▪ ✓ ▪ ✓ ▪ ✓ ▪ ✓ ✓ ▪ ✓ ✓ ▪ ✓ ▪ ✓ ▪ ✓ ✓ ▪ ✓ ▪ ✓ ▪
Slide 27: Burgan Bank
Burgan Bank Business highlights Kuwait based commercial bank with regional presence in five countries 24 Jargest conventional bank in Kuwait in terms of assets (US$25.3bn') BBB+ rating from S&P, Baai from Moody's, A from Fitch and A+ from Cl Stable CET 1 ratio of 13.2% and CAR of 19.5%! Liquidity co
Slide 28: Equate Group
Equate Group Business highlights Kuwait based petrochemical company with operational presence in 11 countries through its subsidiaries Product portfolio — Ethylene Glycol (EG), Polyethylene (PE) and Polyethylene Terephthalate (PET) Second largest producer of Ethylene Glycol in the world with product
Slide 29: SADAFCO
SADAFCO bes Business highlights Operational highlights * Saudi Arabia-based leading food & beverage company, with operations in . Jeddah Production the Middle East and Europe Manufacturing Capacity* 622,000 MT Pt Facility 2 = * Market leader in KSA’s Plain UHT milk, Tomato paste and Ice cream, fe ma
Slide 30: United Real Estate Company (URC)
United Real Estate Company (URC) Business highlights * Operations across the Middle East region through a mix of fully-owned properties, subsidiaries and investment arms * Presence across retail, hospitality, residential and office sectors * Engaged in developing Kuwaiti’s first-ever comprehensive m
Slide 31: United Gulf Holding Company (UGH)
United Gulf Holding Company (UGH) race Business highlights Key franchises Bahrain-based financial services group listed on the Bahrain Stock Name Market Position ltisctiive Assets! Revenue! Exchange Stake US$mn US$mn een . . #1 asset management company in Activities include asset management, corpora
Slide 32: Jordan Kuwait Bank (JKB)
Jordan Kuwait Bank (JKB) Business highlights Operational highlights * Jordan based commercial bank with operations in Jordan, Iraq, Cyprus and Branches? Lebanon Jordan KIPCO Group Stake? 51% * Listed on Amman Stock Exchange with a market capitalization of US$so4mn' | - 62 + st Jargest conventional b
Slide 33: National Petroleum Services Company (NAPESCO)
National Petroleum Services Company (NAPESCO) Business highlights » NAPESCO 1 As of 20 May 2024 2As of 31 Mar 20 A Kuwait based leading provider of Upstream Oilfield Services including Cementing, Stimulation, Coiled Tubing, Nitrogen, and Downhole Service Tools along with pumping services to the Kuwa
Slide 34: Jassim Transport & Stevedoring (JTC) and Advanced Technology Company (ATC)
Jassim Transport & Stevedoring Company (JTC) Business highlights Revenue & Net Profit US$ mn 89 o4 * Kuwait headquartered inland transportation company with operations in Kuwait, Qatar & Saudi Arabia * Leading service providers of Ports management, Contract Logistics, Equipment Leasing and Power Ren
Slide 35: The Kuwait Aromatics Company (KARO)
The Kuwait Aromatics Company (KARO) Business highlights Kuwait based holding company with aromatics production facilities through its subsidiaries — Kuwait Paraxylene Production Company K.S.C. (KPPC) and Kuwait Styrene Company K.S.C. (TKSC) Itis involved in manufacturing of Paraxylene, Benzene and S
Slide 36: OSN+ and Anghami combined entity
• o o o • 18,000 hrs of video US$100m combined 120m users 2.5m subscribers content + 100m revenue songs & podcasts live satellite channels & GooglePlay store apps seamlessly Combined Advanced A unified 4K OSN+ with ads subscription recommendations entertainment offering using AI experience
Slide 37: United Education Company (UEC)
United Education Company (UEC) * KIPCO Group owns 64% stake in UEC + Itowns, 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 capac
Slide 38: Key milestones
▪ ▪ ▪ 2019: Merger of Global Investment House with KAMCO ▪ 2019: KIPCO rights issue (KD95mn) ▪ ▪ 2021: Acquisition of AXA’s operations ▪ in Gulf region by GIG for $475mn 2007: Sale of Wataniya Telecom for KD1.1bn ($3.7bn). The sale 2021: KIPCO rights issue (KD80mn) 1998: Formation of KIPCO Asset res
Slide 39: KIPCO: ESG focus
KIPCO : ESG focus bes VISION mal ( MISSION G | @ Attractive Workplace Advance the role of ESG To govern consistent, _ . across KIPCO, operating collective value in a Positive Environmental businesses and sustainable, compliant and u stakeholders. impactful manner ESG (3) Responsible Community EEE ee
Slide 40: ESG initiatives across group companies
1st Bank in Kuwait to create a Energy Diversity & Inclusion Ethics & Integrity Corporate Reduced energy Sustainable Financing consumption by 48% Female employees Zero confirmed Governance Framework ~10% 8.9% Females in Leadership positions cases of corruption 45% 14% Average employee turnover Indepe
Slide 41: Despite challenging operational environment
gous Despite challenging operational environment... KIPCO High inflation rates Geopolitical tensions Fluctuating oil prices ah High inflation rates, The dependency of the High interest rates and while relatively under Geopolitical tensions Commercial conflicts Middle East, especially potential delay
Slide 42: Kuwait fundamentals remain strong
...Kuwait fundamentals remain strong... % One of the highest rated sovereigns AA-/A1/A+ (Fitch/Moody's/S&P) Supported by low fiscal break-even oil price (US$90.7 per barrel*) 6' Jargest Proven oil reserve of 101.5BBL (6.5% of global reserves) Budgeted Production 2023/24 - 2.7Mn barrels per day* Real
Slide 43: GCC outlook cautious due to global developments
..as well as for the GCC, though outlook is cautious due to global developments Nominal GDP (US$ Bn, 2024E) Oman Bahrain Source: IMF-WEO Database, April 2024 Real GDP Growth (% yoy, 2024E) 2025E 4.2% 2.0% 3.8% 3.1% 3.2% Gross debt (% GDP, 2024E) KSA | Be UAE | 30.3% Qatar | 37.3% Kuwait | 22% Oman |