Kuwait Projects Company Holding (K.S.C.P.) · KSE:KPROJ
Kuwait Projects Company Holding (K.S.C.P.) — Kuwait Projects Company Holding (KIPCO) — Investor Presentation (June 2005)
52 slides from Kuwait Projects Company Holding (K.S.C.P.)'s investor presentation, Jun 28, 2005
Slide 1: KIPCO Group Investors Forum
© Shafafiyah KIPCO Group Investors Forum ik (alae) 0.8 Caieaglall) cy gaol es jlits ays KUWAIT PROJECTS CO. (HOLDING) xsc-. (closed)
Slide 2: Shafafiyah: Beginning of Good Times
Shafafiyah Beginning of Good Times Investor Presentation June 28, 2005
Slide 3: Disclaimer
Disclaimer “In this presentation by the Management of Kuwait Projects Company Holding K.S.C., our use of the words "expect," "anticipate," "estimate," "project," "forecast," "outlook," "target," "objective," "plan," "goal," "pursue" and similar expressions is intended to identify forward looking sta
Slide 4: Our Accomplishments
Our, Accomplishments
Slide 5: KIPCO: Yet another Record Performance driven by...
KIPCO: Yet another Record Performance driven by... Net Profit Profits soar by 39% to establish another year of record profitability Actual vs. Guidance KIPCO meets its guidance for 2004 Revenues Net Income =m Guidance (March 2004) m Actual (December 2004) Capital Intelligence upgrades rating to BBB+
Slide 6: Strong Brand
strong Brand SHOWTIME. SHOWTIME See it first. See it a Petes rey pone eames tent rae een, Sen re eet GIC, Always with you Driven by Challenge
Slide 7: GIC: Expanding Regional Presence
GIC: Expanding Regional Presence Ca woguv ela Gulf Insurance Company xs.c Secured license to operate in the Saudi Insurance Market Launched the National Career Acquired Arab Misr Insurance Group (AMIG), Egypt Development Programme
Slide 8: UGB: Entering New Markets
UGB: Entering New Markets 4 ~v aricl Aus Sis UGB |United Gulf Bank ssc Acquired significant stake in Bank of Baghdad Secured Banking License in Syria Algeria Gulf Bank commences operations
Slide 9: Burgan Bank: Adopting International Best Practices
Burgan Bank: Adopting International Best Practices iI ae, BURGAN BANK Building the Burgan Brand Fostering transparency and Technology initiatives to governance strengthen process efficiency 14 9
Slide 10: Gulf DTH (Showtime): Expanding MENA Presence
Gulf DTH (Showtime): Expanding MENA Presence SHOWTIME Entry into new markets Headquarters in Dubai Media City
Slide 11: NMTC: Gaining Strong Foothold
NMTC : Gaining Strong Foothold WATANIYA TELECOM How Push To Talk Works. Push Release Release Push Wataniya Algerie Acquired license in Maldives Use of IDEN technology to commences operations Acquired 38% stake in PTC offer push to talk services to Saudi Arabia customers in Saudi Arabia 4 wna 9 sa
Slide 12: UREC: Setting New Standards of Service
UREC : Setting New Standards of Service J United Real Estate Co. * fal ~ ~ ~ ~ ~ ~ * * Kuwait : Marina Hotel and Other Projects : Construction of Lebanon Hotel Marina Crescent becomes Kuwait Business City operational 2 | ( B
Slide 13: KAMCO: Launching Innovative Products
KAMCO: Launching Innovative Products Launched KAMCO Investment Fund and US$4.8 billion Kuwait Private Equity Opportunities Fund Assets under management of over 4 — i
Slide 14: SADAFCO: Unlocking Shareholder Value
SADAFCO: Unlocking Shareholder Value Initial Public Offering in May 2005 oversubscribed 6.5 times 4 S| us
Slide 15: KIPCO: Building Partners and People
KIPCO: Building Partners and People (© (aes 1D) aug ll cubis 25,5 KUWAIT PROJECTS CO. (HOLDING) Partnership with Gulf Investment Investing in People Corporation for Wataniya Algeria operations zai h
Slide 16: KIPCO: Building Value...
KIPCO: Building Value... 4 > | 16
Slide 17: ...Market Leadership
...Market Leadership e 3rd largest insurance provider in Kuwait The largest insurance provider in Kuwait Market leader in life, property and casualty insurance segments Increasing presence in Saudi Arabia, Lebanon and Egypt Gross Premium Written 36.7 Net Income KD Million ojo KD Million on *? ch 10.
Slide 18: ..Regional Leadership
..Regional Leadership e First commercial bank in the region to transform itself into an Investment Bank Commercial bank based in Bahrain e Widespread distribution network in the MENA Region e Diversified and stable revenue streams e Proven track-record through market swings Net Income US$ Million 19
Slide 19: ..Technology Leadership
.. rechnology Leadership Commercial bank in Kuwait with over 50% deposits from a single customer Net Income KD Million 1997 2004 2nd fastest growing Bank in terms of profitability Well diversified deposit mix Offering innovative products and services Fostering transparency and governance through int
Slide 20: ..Brand Edge
..Brand Edge SHOW moday, Widest range of program offerings: Over 50 channels Operating licenses for 22 territories in the MENA Region Highest revenue among all TV Broadcast started in 1996 with 6 channels platforms — Pay or Free to Air Subscriber ‘000 o 326.0 2000 2004
Slide 21: ..Technological Edge
.. fechnological Edge Started operations in Kuwait in 1999 Distinction of being net income positive from first year of commencing operations Net Income KD Million 2000 2004 Significant market share of 44% in Kuwait Pioneer in establishing regional presence Registering strong momentum in Tunisia, Alg
Slide 22: ..Translating into a sustained growth in profitability...
.. Lranslating into a sustained growth in profitability... KIPCO Share of Profits from Group Entities (All figures in KD million) Burgan Bank United Gulf NMTC Gulf Insurance Bank m2002 ©2003 m= 2004 ae zai h
Slide 23: ..And reflected in our financials
..And reflected in our financials Total Assets Shareholders’ Equity 2001 2002 2001 2002 2003 Revenue Net Profit 2004 profits at a alltime high 2001 2002 2003 2000 2001 2002 2003 2004
Slide 24: A pro-active approach to Manage Cost of Funds...
A pro-active approach to Manage Cost of Funds... A Cost of funds reduced by 132 basis points since December 2001 despite increase in domestic and global benchmark rates zai h 8% 5 7% 4 6% 4 See KIPCO Cost 5% 4 of Funds (9%) 4% 4 nS P gar toe 1 year KIBOR 3% 4 sai . jee e Se) LS Se ed .* 3 month LIBO
Slide 25: ..And maturity profile...
..And maturity profile... zai h / KD Million Maturity Profile of Existing Debt 40 1 Year 2 Years 3 Years 4+ Years As of Dec 32, 2004
Slide 26: ..Translates into increasing returns
.. rranslates into increasing returns Sustained increase in ROA on the back of increasing profitability of operating companies... ..combined with decreasing cost of funds... ..has resulted in over 300% increase in ROE we Returns Analysis 2001 2002 2003 2004 =» *Retur on Assets (%) Cost of Debt (%) t
Slide 27: KIPCO: Compares favourably with Global Benchmarks...
KIPCO: Compares favourably with Global Benchmarks... >» A benchmark study of KIPCO with a universe of over 100 conglomerates has been undertaken in March 2005 >» Benchmarking based on key operating and return parameters* >» Universe compiled from several sources: Various studies of listed conglomera
Slide 28: ..on Key Growth and ROI Parameters
.on Key Growth and ROI Parameters Benchmarking on Growth Parameters* fo <> <p KIPCO outperforms global 27.3% peers on Key Growth 13.4% Indicators -17.9% - 18.4% Revenue Growth Income Growth Benchmarking on ROI Parameters* ... and compares favourably on ROI parameters 4 2 (% .
Slide 29: KIPCO Stock: Sustained Value Enhancement...
KIPCO Stock: Sustained Value Enhancement... ral Market Value of Core KIPCO Companies* (2000 — 2004) KD200 Million Appreciation 2000 2002 2004 * Excluding Showtime zai h
Slide 30: ..And Strong Liquidity
.. And Strong Liquidity Top 5 Traded Stocks on KSE KIPCO KIPCO Al-Mal Kuwaiti Co. KIPCO United Real Estate Co. Al-Mal Kuwaiti Co. KIPCO Ras AL Khaimah Co. Arab Real Estate Co. Industrial & Financial Ras AL Khaimah Co. for White Cement Investment Co. for White Cement International ila Investment Ras
Slide 31: Our Strategy
Slide 32: KIPCO Strategy: Building a customer-centric platform...
KIPCO Strategy: Building a customer-centric platform... Regional Business Reach Well positioned to capitalise on emerging opportunities Investing in engines of growth Customer Oriented Cost-effective distribution network in the region Diversified Building sustainable revenue profits and streams cash
Slide 33: ..through a Diversified Portfolio
..through a Diversified Portfolio Balanced Portfolio with presence across business cycle stages J, Algeria Gulf =| =NMTC UGB SADAFCO Bank : Showtime z * aX xk os o oe GI a 3 ° 10) New Growth | Mature Business : Business : Business | | fe zai h
Slide 34: Focus on Value Creation...
Focus on Value Creation... oo @ Fal VVVY KIPCO PORTFOLIO | 4 es OO a ee
Slide 35: ..and Growth
.and Growth : To invest in and grow companies ' that produce sustainable and predictable cashflows ' Continued focus on “ Customer * Communication ¢ Organic growth * Regionalisation \ “ Accelerated growth
Slide 36: Our Market
Slide 37: Kuwait Economy
Kuwait Economy : On a Sound Footing... Strong economic growth driven by surge in oil prices High liquidity and low inflation Large investments in infrastructure and non-oil sector Developed capital market Favourable socio-demographic factors High sovereign rating
Slide 38: ..and a high growth trajectory
..and a high growth trajectory Oil prices reach record highs Continued all-round economic growth Continued momentum in projects Slow progress on the Iraq Opportunities Privatisation initiatives on slow track Oil prices expected to remain firm Sustained emphasis on reforms and investment Robust liqui
Slide 39: Kuwait Stock Market: Attractive Valuations
Kuwait Stock Market: Attractive Valuations PE: GCC Countries / As on June 16, 2005 38x a Bahrain AE Qatar im Saudi Arabia /{ PE: Core Companies vs. Sector Average 20x 20x Burgan NMTG Bank | = Core Companies mSector Average / 4s on June 20, 2005 39
Slide 40: Opportunities in the region
Opportunities in the region Opportunities in the MENA Region ——~ ————- OS ~~ Financial Services Telecom Infrastructure Tourism/ Real Estate
Slide 41: Our Outlook
Slide 42: Core Group Companies: Strong 2005Q1 Performance
Core Group Companies: Strong 2005Q1 Performance GIC: Net Income UGB: Net Income 200501 es 200501 Burgan Bank: Net Income NMTC: Net Income 2005Q1 2005Q1 2004Q1 200491
Slide 43: GIC: On-track to achieve 2005 Earnings Guidance
GIC: On-track to achieve 2005 Earnings Guidance ce ee wi pela ys Gulf Insurance Company xs.c 1.) Ls Net Income: 2005F vs. 2004 200591
Slide 44: UGB: On-track to achieve 2005 Earnings Guidance
UGB: On-track to achieve 2005 Earnings Guidance 27S ee s a 2 aridl aul Sis United Gulf Bank es< Net Income: 2005F vs. 2004 Net Income: 2005F vs. 2005Q1 32% 2005F 14.8 200591 4.8
Slide 45: Burgan Bank: On-track to achieve 2005 Earnings Guidance
Burgan Bank: On-track to achieve 2005 Earnings Guidance | oe) oj, 4 BURGAN BANK Net Income: 2005F vs. 2004 200591 2 | ( od
Slide 46: NMTC: On-track to achieve 2005 Earnings Guidance
NMTC: On-track to achieve 2005 Earnings Guidance Net Income: 2005F vs. 2004 Net Income: 2005F vs. 2005Q1 2005Q1
Slide 47: KIPCO: Forecasted Revenue and Expenses
KIPCO: Forecasted Revenue and Expenses / KD Million 33.7 33.5 Income from Other Income Total Costs Net Profit Core Assets ) 2004 ME 2005 Forecast Predictable income stream : 71% (2005) versus 31% (1999)
Slide 48: KIPCO: Guidance for 2005
KIPCO: Guidance for 2005 Net Income Net Income projected to increase by 33%... .. resulting in higher ROE... ..and ROA of 8.6% Return on Equity Return on Assets
Slide 49: Dividend Payout: Historical and Forecast
Dividend Payout: Historical and Forecast Fils per share "Rado, 83% 33 25 22 18 18 15 7 Oo 2001 2002 2003 2004 2005* @ EPS wm Dividend Payout per share * Projected; Subject to Board approval based on actual 2005 results, zai h
Slide 50: KIPCO
KIPCO
Slide 51: The KIPCO Group
The KIPCO Group —K.U.C.M— Kesob Ls welCeedeten is vgpewet UNTIED PIAL ESTATE Cosas United Gulf Bank ax. ex ee 000 cote cod eansracran mc Le. a “ GU Gro ee 4
Slide 52: Thank You
Thank You 4
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