Kuwait Projects Company Holding (K.S.C.P.) · KSE:KPROJ
Kuwait Projects Company Holding (K.S.C.P.) — Kuwait Projects Company Holding (KIPCO) — Debt Investor Presentation (June 2015)
35 slides from Kuwait Projects Company Holding (K.S.C.P.)'s debt investor presentation, June 2015
Slide 1: Growing in Strength: Debt Presentation June 2015
Growing in Strength Debt Presentation | June 2015 D 1
Slide 2: Disclaimer
Disclaimer This presentation is not an offer or invitation to subscribe to or purchase any securities. No warranty is given as to the accuracy or completeness of the information in this presentation. You must make your own independent investigation and appraisal of the business and financial conditi
Slide 3: Index: Key Investment Highlights
Index Key Investment Highlights 3
Slide 4: Our Business, Strategy and Team
Our Business, Strategy and Team Our Business AUM of USD40.0bn Present in 19 MENA countries Mainly financial services and media; profitable for the last 23 consecutive years Our Strategy Controlling stakes in operating businesses in growth markets Seek to generate sustainable and predictable operatin
Slide 5: Key Investment Highlights
Key Investment Highlights Sustained profitability since last 23 years Proven Track Record 13 years of continuous dividends Al Futtooh Investments (AFH) owned by members of Kuwaiti ruling family have a Ruling Family controlling stake ~ 45% Shareholders Shareholders since 1998; have supported KIPCO in
Slide 6: Index: Business Overview
Index Business Overview 6
Slide 7: Building Businesses: Strategic roadmap
Strategic roadmap Regional MENA Outlook Investing in Target engines of ROE: growth 20% Diversified Revenue streams Balanced Building Portfolio Businesses Strong managerial Team expertise Thought Approach leadership Being first in the region Investment in companies with sustainable and predictable ca
Slide 8: Our presence by geographies & sectors
Our presence by geographies & sectors Major Sectors Geography Commercial Revenue1 Media AMIB Insurance Real Estate Industrial Others banking (2014) Kuwait ● ● ● ● ● ● ● 40% UAE ● ● ● ● 7% Bahrain ● ● ● ● 4% KSA ● ● ● 7% Jordan ● ● ● ● 11% Algeria ● ● ● 5% Tunisia ● ● ● 1% Egypt ● ● ● ● 8% Lebanon ●
Slide 9: Core Holdings
Core Holdings KIPCO: All core holdings are market leaders in their space #2 conventional bank #1 Digital satellite premium #1 Insurer in Kuwait3, Bahrain4 , in Kuwait1 Pay TV operator2 in MENA Jordan4 & Egypt5 region #1 Asset Manager in Kuwait with #2 listed real estate Leading industrial company In
Slide 10: Controlling or majority stakes
Controlling or majority stakes Main Entities KIPCO Effective 63.1% 60.5% 97.0% 83.5% 3 45.7% 69.8% Stakes1 Board Representation 6 of 9 2 of 75 6 of 6 6 of 6 4 of 104 4 of 7 Market Cap (USDmn)2 2,952 Unlisted 845 92 396 378 S&P: S&P: A- Credit BBB+/A2 Moody’s: Unrated CI*: BBB CI*: BBB- AM Best: CI*:
Slide 11: Supportive Shareholder With Ruling Family Links
Supportive Shareholder With Ruling Family Links Shareholding Profile Kuwaiti Ruling Family Support Treasury KIPCO’s principal shareholder is Al Futtooh Holding Company Shares K.S.C. (Closed) (“AFH”), a Kuwaiti company owned by 2% Primary members of the Kuwaiti ruling family HNIs & Retail Shareholder
Slide 12: Index: Key developments & Performance Update
Index Key developments & Performance Update 12
Slide 13: 2014: Operating performance continued to be strong
2014: Operating performance continued to be strong Growth % are over 2013 3.4% 175% 2013 2013 9% 3x 3.2% 184% 8% 24% 16% 23% Growth in Growth in NPA Aggregate Growth in Growth in Growth in EBITDA operating net profit provision subscriber revenue EBITDA margin income coverage base 2.6x 7.3x 11% 15% 1
Slide 14: Burgan Bank (BB)
Burgan Bank (BB) Business highlights Key Subsidiaries Market Cap % Kuwait based commercial bank with a Name Market Position Country (USDmn) 1 Stake2 regional presence in nine countries # 3 bank in Jordan in 2nd largest conventional bank in Kuwait terms of net credit 539 Jordan 51% facilities in
Slide 15: Burgan Bank: Regional operations
Burgan Bank: Regional operations Loan Growth Deposit Growth Net Profit^ USDbn USDbn USDmn 9% 31% 17% -4% 34% 14% 6.0 7.4 6.5 32 5.2 19 2.9 1211 15 1.7 1.8 2.2 2.3 2.6 2.1 7 5 3 1.2 3 1.01.1 1.31.2 1.1 1.6 (0) 0.02 0.3 0.2 0.2 0.03 0.3 (1) (4) AGB JKB BoB TIB BBT Total AGB JKB BOB TIB BBT Total AGB J
Slide 16: Burgan Bank: NPA cyclical & not structural
Burgan Bank: NPA cyclical & not structural NPA Trend NPA (USDmn) As on Mar’15, the combined NPA Ratio (Percentage) coverage of non performing 1,072 816 1,237 913 646 665 626 246 assets (NPA) is 188% 199 185 166 164 116 117 106 NPA Ratio is 3.1% as on 1 1 .0 %1 1 .8 % 86 9 .5 % 1 0 .5 % 6 .3 % 6
Slide 17: OSN: Overview
OSN : Overview MENA Pay TV Potential MENA Region1 Latin America UK India US Population (Mn) 237 596 65 1,260 319 Pay TV (Mn; Est.) 5 30 14 139 101 TV Households (Mn) 49 55 27 168 120 TV Households / Households (%) 96% NA 96% 61% 85% Pay TV/ TV Households (%) 11% 55% 54% 82% 86% Low Pay TV penetratio
Slide 18: OSN: Overview…cont'd
OSN: Overview…cont’d Overview Pan Arab reach Largest premium Pay TV operator in MENA region (HQ in Dubai), created by the merger of Syria Showtime and Orbit in 2009 Tunisia Lebanon Iraq Iran Morocco Palestine Jordan Kuwait Licensed to operate in 24 countries in MENA A lgeria Lybia Bahrain with focus
Slide 19: Operating and financial performance
Operating and financial performance Subscribers Net Adds Thousand Thousand 80 1,080 1,097 1,074 1,100 1,066 60 43 25 30 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Churn Diversified subscriber base (Mar - 2015) Percentage Subscribers: 1,100K Others 20% 20% 9% 19% Qatar KSA 15% 25% 19
Slide 20: United Gulf Bank (UGB)
United Gulf Bank (UGB) Business highlights Key Subsidiaries and Associates Market Bahrain-based financial services group Name Market Position Cap Country % Stake 2 listed on the Bahrain Stock Exchange USDmn1 Activities include asset management, #1 asset management corporate finance advisory and
Slide 21: Gulf Insurance Group (GIG)
Gulf Insurance Group (GIG) Business highlights Key Subsidiaries and Associates Market Cap Kuwait-based insurance company listed Name Market position USDmn1 Country % Stake2 on the KSE #1 by GPW 119 Bahrain 56% Presence across the MENA region GIG expanded into Algeria #1 by technical Unlisted Egypt 9
Slide 22: United Real Estate Company (URC)
United Real Estate Company (URC) Business highlights Operations across the Middle East region through Country Key Projects a mix of fully-owned properties, subsidiaries and KIPCO Tower, Al Shaheed Tower, Marina World, Kuwait investment arms Marina Hotel, Saleh Shehab Stable rental income; Rental inc
Slide 23: KIPCO Consolidated: Financial performance
KIPCO Consolidated: Financial performance Revenue Net Income Consolidated Assets USDmn USDmn EPS (Cents) USDbn 8.0 9.5 11.3 2.4 2.1 31.9 31.4 2,042 29.5 157 1,756* 24.6 137 1,414 108 40 457 467 34 2012 2013 2014 Q1'14 Q1'15 2012 2013 2014 Q1'14 Q1'15 2012 2013 2014 Q1'15 23 *Revenue excluding income
Slide 24: Index: Debt Metrics
Index Debt Metrics 24
Slide 25: KIPCO (Parent): Debt Metrics
KIPCO (Parent): Debt Metrics (USDmn) Financial 31 December 31 December KIPCO (Parent) 31 March 2015 Targets 2013 2014 Cash & Cash Equivalents 489 913 929 Gross Debt 1,365 1,902 1,892 Net Debt 876 989 964 Shareholders’ Equity 1,914 1,965 1,790 Net Parent Debt / Shareholders’ Equity <2.5x 0.46x 0.50x
Slide 26: KIPCO Parent: Significant Cash Coverage till 2018
KIPCO Parent: Significant Cash Coverage till 2018 Current cash sufficient to meet all debt Debt obligations till Coverage Infinite 1.2x Infinite 1.2x Dec’2018 USDmn 2015 2016 2017 2018 Cash Debt Cash Coverage of Debt: Available Cash / Debt due in the year 26
Slide 27: KIPCO Parent debt profile: As at 31 March 2015
KIPCO Parent debt profile: As at 31 March 2015 Debt Type Debt Maturity Total Debt: USD1.9bn Total Debt: USD1.9bn Average debt maturity is International 3.1 years Bonds Local 79% Bonds 14% 40% 33% 26% 7% Term <2 Years 2-4 Years >4 Years Loan Liquidity KIPCO has cash & bank balance of USD929mn − The c
Slide 28: Index: Why KIPCO
Index Why KIPCO 28
Slide 29: Why KIPCO
Why KIPCO Proven strategy and Prudent financial experienced management management Team Resulting in strong liquidity with Little impact of recent turmoil in no refinancing risk the region on our businesses Group transparency Operating performance well recognized by of our businesses investors contin
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Slide 31: Index: Annexure
Index Annexure 31
Slide 32: United Industries Company (UIC)
United Industries Company (UIC) Business highlights Key Investments Market Established in 1979, UIC operates as a holding Name Sector Country Cap % Stake2 company for the Group’s industrial investments USDmn1 UIC’s mission is to manage a diversified portfolio of investments in the energy, food & bas
Slide 33: URC: Balance Sheet (Break-up) as of 31 March 2015
URC: Balance Sheet (Break-up) as of 31 March 2015 Total Assets Investment Properties Total Assets USD1,780m n Total: USD383m n 1% Investm ent properties Marina World - Kuwait 3% 11% Land for development 3% 22% 12% Projects under Salalah Mall - Oman construction* 14% Fixed Assets (PPE) Marina Plaza -
Slide 34: KIPCO: Huge Value Potential for Investors
KIPCO: Huge Value Potential for Investors No Repayment risk Has sufficient cash to service all debt obligations till Dec 2018 (1.2x coverage) Proactive liability Minimal credit management risk and strong Strong secondary market performance Average debt maturity investor of bonds of 3.1years confiden
Slide 35: Kuwait Development Plan Overview
Kuwait Development Plan Overview Purpose: In February 2010, the Kuwaiti authorities announced a series of five-year plans stretching to 2035 aimed at diversifying the economy and expanding the role of the private sector while tackling much needed investments in health, education and infrastructure
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