Centum Investment Company Plc · NSEKE:CTUM
Centum Investment — FY2023 Earnings Presentation
55 slides from Centum Investment's earnings presentation, Jul 28, 2023
Slide 1: FY2023 Investor Briefing & Results Announcement
C CENTUM FY2023 Investor Briefing & Results Announcement For the Period ended 31 March 2023. July 28th 2023 www.centum.co.ke
Slide 2: Agenda
C CENTUM Agenda. BUSINESS REVIEW Dr. James Mworia — Chief Executive Officer FINANCIAL REVIEW Risper Alaro — Group Finance Director OUTLOOK Dr. James Mworia —- Chief Executive Officer Q&A
Slide 3: Business Review
C CENTUM BUSINESS REVIEW Dr. James Mworia — Chief Executive Officer
Slide 4: Section 1: About Centum
C CENTUM BUSINESS REVIEW Dr. James Mworia — Chief Executive Officer Section 1: About Centum.
Slide 5: Our Business Model
Our Business Model. Deploy Capital Create & Grow Value + Institutionalize robust governance structures Identify compelling opportunities and deploy capital through innovative investment structures. (4 + Enhance business o™ y process efficiencies + Grow products and scale up markets + Resolve operati
Slide 6: Company Snapshot
Company Snapshot. 5 KES Market Capitalisation™ ® v 6.0 billion KES 36 billion translates to Kes 54.4NAV per share KES 8 Net Asset Value? vi 38.2 billion Net growth in shareholder | funds since 2009 Cumulative dividends © KES distribution consistently 7 made since FY2016 4.9 billion na, Cost-to-incom
Slide 7: FY 2009 - FY 2023 Snapshot
FY 2009 - FY 2023 Snapshot. C Annualized Dividend Growth in CENTUM Return Distribution Shareholders’ Equity 18.3% 49... 9x Company Snapshot. + The shareholders’ equity value at March 2009 was Kes 4.1Bn. Centum Value creation and distribution (FY2009 - FY2023) 9) + Centum has since made dividend dist
Slide 8: Company Overview - Group corporate structure
C Company Overview - CENTUM angible Group corporate structure. — as of 31 March 2023 “7 Centum Investment Company Plc REALESTATE PRIVATE EQUITY MARKETABLE = = SECURITIES . Othe 100% | ee PORTFOLIO 58.3% lo0% 1, Nabo Capital 1. Isuzu East Africa - 17.8% Two Rivers Centum Real 2. ZohariCredit Ltd i di
Slide 9: Section 2: Strategy Update and Performance Overview
C CENTUM BUSINESS REVIEW Dr. James Mworia — Chief Executive Officer Section 2: Strategy Update and Performance Overview.
Slide 10: Strategy Evolution
Strategy Evolution es 38.3Bn shareholder value created has been GC = ° achieved through diverse strategies as the business ALTA adapted to the economic environment over the CENTUM different growth stages. businesses with decentralized core Focus on building sustainable and resilient Psion 2023 KES 4
Slide 11: Centum 4.0 - Operating Context
Centum 4.0 - Operating Context. INFLATION & INTEREST RATES FISCAL DEFICIT & PUBLIC DEBT We had a bearish outlook on the economic environment and capital preservation. Centum 4.0 - Assumptions + Projected subdued Kenya's economic growth (average: 5.2%) on the back of global slow down and the local po
Slide 12: Strategy Overview - Progress Highlights
Strategy Overview — Progress Highlights. Strategic Pillars (FY 2022 - FY 2024) Returns & Dividend Payout Key Objectives + Generate 20% annualized return and grow NAV to KES 70Bn by FY2024 + Distribute to shareholders a minimum of 30% annuity cash income Capital Structure & Liquidity + Pay down KES 3
Slide 13: FY 2023 Key Focus Areas
C FY 2023 Key Focus Areas. CENTUM Objectives. Balance Sheet Strengthening Deleverage and Build Up Liquidity Investment Activity Enhancing Shareholder Returns Status. + We have maintained zero long-term debt at Company level in line with Centum 4.0 deleveraging objective. Closing debt position was Ke
Slide 14: Company Performance Highlights - Total Return Statement
Company Performance Highlights - Total Return Statement. The primary objective of Centum as an investment company is to grow and preserve shareholder value as measured by the Net Asset Value (NAV) of the company. [Centum Total Return Statement Fy2020 -FY2021-F¥2022 Fv2023 Total KesMn = KesMn_— KesMn
Slide 15: Performance Highlights
Performance Highlights: + The Company's cash generating capacity remains strong having realized total net cash proceeds of Kes 3.2 Bn in FY2023. + Kes 696Mn was generated from recurrent operations while Kes 2.5Bn was generated from portfolio trading activity and repayment of shareholder loans by por
Slide 16: Section 3: Debt Review
C CENTUM BUSINESS REVIEW Dr. James Mworia — Chief Executive Officer Section 3: Debt Review. 16
Slide 17: Debt Review - Company Debt Analysis
Debt Review - Company Debt Analysis Kes 15.2Bn of debt was repaid in the Centum 4.0 period, thereby reducing Debt to Equity ratio from 30.7% to 5.4%. (a) Debt analysis Mar 2019 Mar 2020 Mar 2021 Mn Kes Mn Mn 3106 3,150 Overdraft Facility 108 1,037 1016 1,010 744, Total 16,145 7,486 4,122 4,159 2204
Slide 18: Section 4: Portfolio Updates
C CENTUM BUSINESS REVIEW Dr. James Mworia — Chief Executive Officer Section 4: Portfolio Updates. 18
Slide 19: Portfolio Snapshot
Portfolio Snapshot. C CENTUM Total Assets - KES 41.7Bn | TotalNAV-36Bn | NAV Per Share — KES 54.4 A. GROWTH PORTFOLIO — 85% B. MARKETABLE SECURITIES — 15% Sector Diversification is) TIERDATA Ea 2. Technology (2) 3 NAS KIRA 3. Services (1) SERVAIR GEOTHERMAL — LONGHORN ACE 5. Automotive (1) re ISUZU
Slide 20: Portfolio Updates - Growth Portfolio Review
C CENTUM BUSINESS REVIEW Dr. James Mworia — Chief Executive Officer Section 4: Portfolio Updates — Growth Portfolio Review. 20
Slide 21: Portfolio Review - FY2023 Summary Carrying Value
C CENTUM Portfolio Review - FY2023 Summary Carrying Value. Shareholder Total Carrying iCentum’s Portfolio pcmireor ital %ofcompany Fquity Value fisare vais: Valuation method Summary - 31 March 2023 nese owned kesMn kes mn kesMn Sale of development rights on Centum RealEstate proprietary mixed-use la
Slide 22: Portfolio Review - Centum RE
Portfolio Review - Updates and Outlook: Centum RE. %) CENTUM Centum’s Stake | 100% Carrying Value | Kes 21.8 Bn Strategic Focus: - C CENTUM Centum Real Estate has two distinct business segments Sale Development Rights Development and Sale of Residential Units + Increase sales velocity within our lan
Slide 23: Centum RE - Sale of Development Rights
Portfolio Review - Updates and Outlook: Centum RE. Sale of Development Rights %) CENTUM Centum’s Stake | 100% Carrying Value | Kes 22.0Bn = Development rights Mar 2023. Mar 2022] Kes Mn Kes Mn] Cummulative signed sales at start of the year 4561 2,888 New sales signed during the year 6,247 1,672 Cumm
Slide 24: Centum RE - Sale of Residential Units
C Sale of Residential Units CENTUM Portfolio Review - Updates and Outlook: Centum RE. sidential development business. ing projects Mar 2023 Mar 2022] Kes Min__Kes Mn} Y Cumulative sales value : KES 16.9 Billion an ‘Cummulative signed sales at start of the year 14,112 11,315 P\Garndiglive collections
Slide 25: Two Rivers International Finance & Innovation Centre (TRIFIC)
Portfolio Review - Updates and Outlook: Two Rivers International Finance & Innovation Centre (TRIFIC). C CENTUM TRIFIC is the first-ever business services Special Economic Zone (SEZ) in Kenya, offering new and exciting prospects for global, regional, African and Kenyan service- oriented business ent
Slide 26: Portfolio Review - Sidian Bank
C CENTUM Portfolio Review - Updates and Outlook: Sidian Bank. > Net Profit 486 SidianBank 395.0 Oven Torro Centum’s Stake | 83% de n2 9 . 2 i) — Carrying Value | Kes 4.27 Bn 3 x FF Pe 2019 2020 2021 2022 -406 -378 Strategic Focus: ~* Maximize the growth opportunities following the end of cap on lend
Slide 27: Portfolio Review - Isuzu
'e Portfolio Review - Updates and Outlook: ‘ei Isuzu. ISU2U EAST AFRICA Centum's Stake | 17.8% Carrying Value | Kes 3.5 Bn _y Focus: <i tangible wealth Dividends paid to Centum (Kes 000) Market share 180,569 Oy 127,501 135,784 134,323 |_| FY2019 FY2020 FY2021 FY2022 FY2023 The business is exploring
Slide 28: Portfolio Review - Nas Servair
Portfolio Review - Updates and Outlook: Nas Servair. & NAS SERVAIR: Centum’s Stake | 15% Carrying Value | Kes 778Mn = ¥ Focus: I fe, ) CENTUM tangible wealth Dividends paid to Centum (Kes 000) 157,205 104,430 52,480 FY2019 FY2020 FY2021 FY2022 FY2023 Position for full business recovery following reb
Slide 29: Portfolio Review - Greenblade Growers
Portfolio Review - Updates and Outlook: Greenblade Growers. G| Greenblade | Growers Ltd Centum’s Stake | 100% Carrying Value | Kes 307Mn » Strategic Focus: i a C CENTUM Greenblade EBITDA Trend (Kes Mn) FY2021 FY2022 FY2023 (46.5) Market expansion: Grow market reach to the broader Europe, Middle East
Slide 30: Portfolio Review - Jafari Credit
Portfolio Review - Updates and Outlook: Jafari Credit. eee Accelerate disbursements to Kes IOOMn Centum’s Stake | 100% per month, providing a platform that generates higher yield alternative to for Carrying Value | NIL Centum’s cash placements Loan Book Value (June 2023) Average cash income yield pe
Slide 31: Portfolio Review - Tribus
Portfolio Review - Updates and Outlook: Tribus. Centum’s Stake | 80% Carrying Value | Kes 65 Mn C CENTUM Key Service Offering aoe speciale ifrmation “saegsae” | Consultancy, Manufacturing Technology ras Notable Clients Signed Up: + World Bank + IME + US Embassy + British High Commission + Internatio
Slide 32: Portfolio Review - Longhorn Publishers
Portfolio Review - Updates and Outlook: Longhorn Publishers. — LONGHORN PUBLISHERSLIMITED oxpinainn minds, Centum’s Stake | 60.2% Carrying Value | Kes 428 Mn a Strategic Focus: C CENTUM Longhorn GP and operating profit (Kes Mn) 822 781 465 463 487 497 635 201 208 FY2018 FY2019 FY2020 FY2021 FY2022 G
Slide 33: Portfolio Review - Akiira Geothermal
Portfolio Review - Updates and Outlook: C Akiira Geothermal. CENTUM KIRA GEOTHERMAL Centum’s Stake | 37.5% Carrying Value | Kes 866 Mn J <i Project + Resources availability confirmed. milestones and update: Secured interest on a proposed partnership in joint development with a leading geothermal pla
Slide 34: Portfolio Updates - Marketable Securities
C CENTUM BUSINESS REVIEW Dr. James Mworia — Chief Executive Officer Section 4: Portfolio Updates — Marketable Securities. Managed by: N NABO 34
Slide 35: Marketable Securities Portfolio
Portfolio Review - Updates and Outlook: Marketable Securities Portfolio. C CENTUM Marketable Securities Portfolio m Cash & Equivalents m Government Bonds (LCY) m Government Bonds (Eurobonds) lm Corporate Fixed Income Equities Mar 2023 @ Kes 6.3Bn mCash & Equivalents m Government fixed income = Corpo
Slide 36: Section 5: Share Buyback Update
C CENTUM BUSINESS REVIEW Dr. James Mworia — Chief Executive Officer Section 5: Share Buyback Update. 36
Slide 37: Share Buyback Update
Share Buyback update. 10 10 7 6/2/23 Centum Share Buyback Update | Feb - July 2023 8.94 9 Woes 8.42 6/3/23 6/4/23 mmm Cumulative Total Shares traded 9.00 6/5/23 8.00 6/8/23 6/7/23 mm Cumulative Shares Purchased = ——VWAP i Il 9.06 9.00 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 C C
Slide 38: Section 6: Sustainability Report
C CENTUM BUSINESS REVIEW Risper Alaro — Group Finance Director Section 6: Sustainability Report. 38
Slide 39: ESG Report
CENTUM ESG Report We are delighted to present Centum’s first ESG Report that highlights our impact in the context of global ESG frameworks. In November 2021, the Nairobi Securities Exchange published guidelines on ESG disclosures aiming at improving and standardizing ESG information reported by list
Slide 40: About the Report
We report against our impact We have considered all requirements ; About the ae ¥ @ C in the identified material and guidelines from the Global 4 topics, which have been Reporting Initiative standards in Report. defined by our stakeholders preparation of our sustainability report, C EN T u M and the
Slide 41: A Snapshot Of Our Impact | FY 2023
A Snapshot Of Our Impact | FY 2023. CG CENTUM ENVIRONMENT 80% 1.2 MW »>3,000 tangible wealth of water recycled Solar Power installed in Trees grown from facilities two of our investee over the year. within Two Rivers companies representing 230% of their needs. SOCIAL GOVERNANCE 50-50 Board 21,000 ma
Slide 42: Financial Performance
C CENTUM FINANCIAL PERFORMANCE Risper Alaro — Group Finance Director
Slide 43: Company Total Return Statement
Company Total Return Statement. Kes Mn Dividend and interest income Other investment income Operating expenses Finance cost Operating profit Impairment of assets Income tax Profit (Loss) after tax Unrealised gains/(losses) Total return for the year Opening NAV Return on opening NAV NSE Index Outperf
Slide 44: Company Statement of Financial Position
C Company Statement of Financial Position. CENTUM Growth portf Borrowings 2,248 4159 (46%) - Investment in Subsidiaries 21,991 25,019 (12%) Other Liabilities 3,521 1476 139% - Debt Investment in Subsidiaries 8,505 9,275 (8%) Total Liabilities 5,769 5,635 2% - Unquoted Investments 4,687 4,947 (5%) ~
Slide 45: Company Cashflow Statement
Company Cashflow Statement. Net cash generated from operating activities 2,413 1,116 Cash flows from investing activities Purchase of property and equipment (8) (7) Investments in subsidiaries (equity) - (183) Net debt investment in subsidiaries (863) (1,132) Investment in government securities and
Slide 46: Consolidated Financial Statements
C CENTUM FINANCIAL PERFORMANCE Risper Alaro — Group Finance Director Consolidated Financial Statements. For purposes of compliance with the Company‘s Act requirements. 46
Slide 47: Consolidated Income Statement
Consolidated Income Statement. Kes Mn M Mar 2022 A Profit/ (loss) from trading businesses 119,027 73,215 (263%) Profit from financial services 334,362 691,657 (52%) Profit from real estate investments 2,018,458 127,049 1,489% (7,090,362) (2,289,881) — (210%) (394,755) (397,812) (251%) (6,251,324) (1
Slide 48: Consolidated Statement of Financial Position
C Consolidated Statement of Financial Position. CENTUM Kes Mn Mar 2023) Mar 2022 Investment portfolio 7,736 1,655 Loans and advances 101 - Cash and cash equivalents 543 96 The consolidated statement of financial position is the Assets held for sale 42,947 43,030 aggregation of assets and liabilities
Slide 49: Proposed Dividend
C CENTUM Proposed Dividend.
Slide 50: Proposed Dividend
Proposed Dividend. Consistent annual dividend pay-out 799 799 799 799 665 2 2 220 2016 2017 2018 Dividend payout 2019 2020 2021 391 2022 Proposed 2023 © CENTUM tangible wealth * Centum’'s dividend policy is to pay out 30% of annuity income. = Management proposes to pay out Kes 400Mnh in dividends wi
Slide 51: Outlook
C CENTUM OUTLOOK Dr. James Mworia — Chief Executive Officer
Slide 52: Outlook FY 2024
Outlook FY 2024. As we progress into FY2024 which is the last year of our Centum 4.0 Strategy 5-year period, we are optimistic that the key initiatives that we have set out to pursue will positively impact shareholder value and returns. C CENTUM Key Focus Areas: Implement the TRIFIC SEZ opportunity
Slide 53: Outlook FY 2024
Outlook FY 2024. As we progress into FY2024 which is the last year of our Centum 4.0 Strategy 5-year period, we are optimistic that the key initiatives that we have set out to pursue will positively impact shareholder value and returns. C CENTUM Key Focus Areas: Maintain the average cash return yiel
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Slide 55: Centum Investment Company Plc
C CENTUM Centum Investment Company Plc 9th Floor South Tower, Two Rivers P.O. Box 10518 — 00100 Nairobi Kenya Tel: (+254) 20 228 6000 / (+254) 709 902000 Email: investorelations@centum.co.ke
Centum Investment Company — FY2023 Earnings Presentation on 6ix