National Central Cooling Co. (p.s.c.) (tabreed) · DFM:TABREED
National Central Cooling Co. (p.s.c.) (tabreed) — National Central Cooling Company (Tabreed) — FY2023 Earnings Presentation
28 slides from National Central Cooling Co. (p.s.c.) (tabreed)'s earnings presentation, Feb 15, 2024
Slide 1: National Central Cooling Company FY 2023 Earnings Presentation
National Central Cooling Company FY 2023 Earnings Presentation 15 February 2024
Slide 2: Disclaimer
Disclaimer • These materials have been prepared by and are the sole responsibility of the National Central Cooling Company Securities Act) and may not be offered or sold except under an exemption from, or transaction not subject to, the PJSC, ‘Tabreed’ (the “Company”). These materials have been prep
Slide 3: Agenda
Agenda 1 Key Highlights 4 2 Sustainability Overview 9 3 FY 2023 Financial Results 12 4 Outlook and Concluding Remarks 18 5 Questions & Answers 3|
Slide 4: Key Highlights
01 Key Highlights Adel Al Wahedi, Chief Financial Officer
Slide 5: FY 2023 Key Achievements
Key Highlights FY 2023 Key Achievements Placeholder for Image Strong underlying Continued strategic Solid progress on operating and financial expansion in the UAE sustainability goals and performance and Internationally ambitions 8% YoY increase in consumption Expanded capacity by 53 k RT, Started o
Slide 6: Solid financial results, balance sheet and cash flow profile
Key Highlights Solid financial results, balance sheet and cash flow profile Total Capacity Revenue Free Cash Flows Net Debt / EBITDA 1,303 k RT AED 2,415 m AED 1,212 m 4.1 X +3% YoY +9% YoY +8% YoY -0.4x YoY EBITDA Normalized Net Profit RoCE Div. Yield1 AED 1,198 m AED 603 m 7.8 % 4.7 % -3% YoY +14%
Slide 7: Continued expansion and robust operational performance
Key Highlights Continued expansion and robust operational performance Chilled Water Revenue Consumption Volumes Capacity by Country Capacity UAE, 83% 56% 2.6 billion RTH KSA, 10% +8% YoY Oman, 4% Bahrain, 3% Egypt, 0.2% India, 0.1% Consumption 44% +3% CAGR: +8% 7|
Slide 8: Significant strategic progress to grow earnings
Key Highlights Significant strategic progress to grow earnings Delivering on our growth plans Securing future growth Focusing on excellence • 6 new plants commenced operations • Announced new project Hyderabad • Completed Ph. 3 of retrofit program to • 5 greenfield plants (2 in UAE, 2 in Saudi, 1 Ph
Slide 9: Sustainability Overview
02 Sustainability Overview Adel Al Wahedi, Chief Financial Officer
Slide 10: 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 2.52 billion
Slide 11: 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 12: FY 2023 Financial Results
03 FY 2023 Financial Results Salik Malik, Vice President - Finance
Slide 13: Income Statement Summary
FY 2023 Financial Results Income Statement Summary AED millions +9% YoY +24% YoY 13 |
Slide 14: Income Statement Highlights
FY 2023 Financial Results Income Statement Highlights AED millions Chg. YoY +9% +10% Chg. YoY +9% +13% Chg. YoY +9% +16% +16% -54% Chg. YoY +4% +17% -24% +114% +18% NA NA 14 |
Slide 15: Normalized Net Profit
FY 2023 Financial Results Normalized Net Profit AED millions FY 2022 FY 2023 Chg. (YoY) Deferred Tax Liability Reported Net Profit to Parent 600 431 -28% • The company recognized deferred tax liability provision of AED 359 million in the third quarter of 2024 related to intangible assets One-off (ga
Slide 16: Balance Sheet Highlights
FY 2023 Financial Results Balance Sheet Highlights Balance Sheet Breakdown (AED million) Capital Structure Total Assets 5,378 6,165 5,536 4,929 Net Debt (AED m) Profile 15,451 2,914 14,814 Cash & ST Deposits 1,773 1,510 969 775 457 622 2019 2020 2021 2022 2023 Receivables & Others 4,152 4,049 Associ
Slide 17: Highly cash generative business supports growth, deleveraging & dividends
FY 2023 Financial Results Highly cash generative business supports growth, deleveraging & dividends AED millions Free Cash Flows AED 1,212 m 17 |
Slide 18: Outlook & Concluding Remarks
04 Outlook & Concluding Remarks Adel Al Wahedi, Chief Financial Officer
Slide 19: Capacity Growth Guidance
Outlook Capacity Growth Guidance 2022-2023 Two years guidance update kRT • 55k RT and 53k RT was added in 2022 and 2023 resp. - 67k RT in UAE, 20k RT in Oman, 14k RT in Saudi, 3.5kRT in Bahrain, 3k RT in Egypt and 1k RT in India. 2022 - 2023 Capacity Guidance 120 • 87% of the capacity added in 2022
Slide 20: Rising space cooling demand and strong macro tailwinds reinforce growth outlook
Outlook Rising space cooling demand and strong macro tailwinds reinforce growth outlook 1 2 3 4 Space Cooling District Cooling Energy Resilience Rising District Demand Efficiency & Decarbonisation Cooling Adoption Space Cooling accounts District cooling offers Government policies to Tabreed’s key ma
Slide 21: Leveraging on expansion opportunities to diversify presence and sustain long-term growth
Outlook Leveraging on expansion opportunities to diversify presence and sustain long-term growth Core market provides high revenue New markets offer visibility and stable growth strong growth upside UAE International 8.1% CAGR 0.3m RT 0.35m RT 1.30m RT 0.91m RT Largely driven by expansion in existin
Slide 22: Q&A
Q&A
Slide 23: Appendix
Appendix Otabreed
Slide 24: Connected Capacity
Overview Connected Capacity Consolidated 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 2023 UAE 724 928 1,025 1,060 1,071 1,077 1,051! 1,053 Bahrain 28 32 33 34 34 35 35 37 Oman 32 32 33 52 53 53 53 53 India - - - - - - 1 1 Egypt - - - - - - - 3 Total Consolidated 1,123 992 1,091 1,146 1,158 1,165 1,1
Slide 25: Proven track record of growth, momentum maintained in 2023
Financial Overview Proven track record of growth, momentum maintained in 2023 Group Connected Capacity1 (kRT) Group Revenue (AED m) 2,415 1,264 1,303 2,216 1,174 1,210 82 1,955 75 965 196 218 1,741 175 176 1,520 73 54 170 64 2,141 2,333 999 1,034 1,069 1,086 1,687 1,882 795 1,456 2019 2020 2021 2022
Slide 26: Sustainable earnings with resilient margins
Financial Overview Sustainable earnings with resilient margins AED millions • Predictable earnings driven by long term nature of the contracts and fixed capacity charges, ensuring a reliable revenue stream 1,232 1,198 • EBITDA has grown at a CAGR of 12% over 2019-23, underscoring 970 1,033 sustained
Slide 27: 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 • Net Operating Cash Flows recorded remarkable annual growth of creditworthiness. 14% over 2019-23, reflecting growth in business, operatio
Slide 28: 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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