Centum Investment Company Plc · NSEKE:CTUM
Centum Investment — Investor Presentation (September 2019)
40 slides from Centum Investment's investor presentation, September 2019
Slide 1: Investor Update Presentation
Investor Update Presentation September 2019
Slide 2: Table of Contents
Table of Contents Company Overview 3 Our Portfolio 8 2
Slide 3: Centum at a Glance
Centum at a Glance KES 19.3b Market Capitalisation(1) Real Estate 50% (2) KES 52.6b Net Asset Value Private Equity 36% Development 8% 18% CAGR on NAV FY14 – FY19 Marketable Securities 6% 6 Active Sectors(3) KES 71.6b Total Assets(2) 1.5% Average Cost Efficiency FY14 – FY19 26% Net Debt to Equity(2)
Slide 4: Centum 3.0 Scorecard: FY14 – FY19
Centum 3.0 Scorecard: FY14 – FY19 Remarkable success in Asset and NAV growth over the last 5 years Total Assets (KES billions), FY14 - FY19 Net Asset Value per Share (KES), FY14 - FY19 85.0 85.0 79.0 73.2 71.6 18.0% CAGR 67.3 20.0% 66.1 65.0 61.6 65.0 CAGR 59.1 51.5 48 45.0 41.2 45.0 34.5 28.8 25.0
Slide 5: Centum 3.0 Scorecard: Key Events and Drivers of Growth
Centum 3.0 Scorecard: FY14 – FY19 Key Events and Drivers of Growth • KES 36.2 billion raised from full or partial exits from our investment portfolio, with realised gains of Exits KES 24.3 billion • Successfully raised two corporate bonds totalling KES 10.2 billion Debt fund • KES 4.2 billion bond m
Slide 6: Our Strategic Pillars Centum 4.0 FY20 – FY24
Our Strategic Pillars Centum 4.0 FY20 – FY24 • Generate a minimum return on equity of 20% through value-creating activities Return & Dividend Pay- out • Optimise dividend pay-out to the higher of 30% of the cash annuity income (excluding capital gains) and the previous year’s dividend pay-out • Bala
Slide 7: Our Portfolio
Our Portfolio As at 31 March 2019 Total Assets NAV NAV/ Share 01 Real Estate Land banks in strategic locations that have KES 35.9 billion KES 24.9 billion KES 37.45 | 47.4% been master-planned to new urban nodes Private Equity 02 Trading subsidiaries or investments KES 25.6 billion KES 21.2 billion
Slide 8: Our Performance: Return Snapshot
Our Performance Return Snapshot KES millions FY14 FY15 FY16 FY17 FY18 FY19 Return Drivers Dividend Income 1,789 1,318 2,671 1,765 2,040 700 FY14 Interest Income 40 77 676 1,326 1,347 1,197 • Partial sale of Tanzania Breweries Limited leading to payment of KES 1.1b and dividends by Centum Exotix Limi
Slide 9: Our Performance: Company Gearing
Our Performance Company Gearing Borrowings by Nature of Debt FY19 Debt Maturity Profile (KES millions) Revolving 1% Overdraft Facility Credit Facility 6,108 12% 5,504 4,503 39% million KES Bond II KES 16.14b Total Debt 47% Term Loan FY20 FY21 FY22 Debt Service Coverage Long-Term Debt to Equity (%) 4
Slide 10: Agenda
Agenda Real Estate Pg. 9 Private Equity Pg. 17 Our Portfolio Marketable Securities Pg. 27 10
Slide 11: Real Estate Portfolio Assets
Real Estate Portfolio Assets Sector Net Asset Value contribution KES 24,919 million | 47.4%| KES 37.45 per share Vipingo Development Limited Stake: 100% 10,254 acres mixed-use development anchored by an industrial zone dubbed the Vipingo Investment Park, the site is located in Kilifi County, Kenya.
Slide 12: Real Estate Portfolio: Centum 4.0 Strategic Pillars
Real Estate Portfolio Centum 4.0 Strategic Pillars Our vision is to be the Region’s leading Real Estate developer and investment brand by master developing of urban nodes in East Africa, transforming areas into places where people want to live, companies want to grow and neighbourhoods come alive co
Slide 13: Infill Development Projects Under Construction
Real Estate Portfolio Infill Development Projects Under Construction as at September 2019 Sale Value of Full Phase Phase 1 Pre-sales Pre-sold Units under Units under Shareholding Development Development Units % of Phase 1 KES million 100% 568 484 132 27% 1,887 100% 1,407 404 373 92% 1,569 100% 847 4
Slide 14: Infill Development Projects Under Design
Real Estate Portfolio Infill Development Projects Under Design as at September 2019 Full Phase Full Phase Units under Market Units under Shareholding Validation Design 100% - 1,072 units 100% 24 units 180 units 100% - 634 units Total 24 units 1,886 units The above are units being developed on our ex
Slide 15: Real Estate Portfolio Land Sales
Real Estate Portfolio Land Sales as at September 2019 Bulk Land Sales Pipeline Acres/ Sales Amount Percentage Shareholding Developable Bulk KES Million Closed 100% 232 acres 1,448 30% 100% 63 acres 1,811 10% 100% 743,306 SQM 14,774 50% Total 18,033 Central Bank of Kenya spot rate USD/KES 103.728 on
Slide 16: Two Rivers Outlook
Real Estate Portfolio Infill Development Projects as at August 2019 Value Drivers Project Pipeline Riverbank Apartments • Two Rivers Mall was 79%(1) let (on gross lettable area) Retail ― Increased tenant uptake on both local and international brands • Two Rivers Office Towers, 14%(1) of the space is
Slide 17: Vipingo Development: Overview
Real Estate Portfolio Vipingo Development: Overview Value Uplift To realize a target return of 30% Sale of Unserviced Land Sale of circa 3,000 acres of unserviced land Strategic Pillars Sale of Serviced Land Sale of 180 acres of serviced land and profitably open up the site through an Investment Par
Slide 18: Vipingo Development: Progress Update
Real Estate Portfolio Vipingo Development: Progress Update Sea Water Project Pipeline Investment Park Awali Estate 1255 Palm Ridge Desalination Awali Estate Phase 1: Spread 152 units on 30 1,255 apartments - Description over 180 acres acres on 20 acres Acquire Land Master Plan and Obtain Approvals (
Slide 19: Pearl Marina: Overview
Real Estate Portfolio Pearl Marina: Overview Value Uplift Unlock key infrastructure and social amenities within the development Targeted key social amenities include an international school, sports facilities, and medical facilities Strategic Sale of Unserviced Land Pillars Sale of circa 165 acres o
Slide 20: Pearl Marina: Progress Update
Real Estate Portfolio Pearl Marina: Progress Update Riviera Mirabella Villas Bella Vista Town Houses Project Pipeline Mirabella Residences Description 22 units on 4.7 acres 360 units on 8 acres 53 units on 4.7 acres Acquire Land Master Plan and Obtain Approvals Ongoing Ongoing (NEMA*) Market Validat
Slide 21: Real Estate Portfolio Valuation as at 31 March 2019
Real Estate Portfolio Valuation as at 31 March 2019 Real Estate Portfolio Company Stake Carrying Value Carrying Value Valuation Portfolio FY19 (KES million) FY18 (KES million) Method Vipingo Development Limited 100% 13,865 7,646 Net Asset Value Two Rivers Development Limited 58.30% 9,898 12,357 Net
Slide 22: Agenda
Agenda Real Estate Pg. 9 Private Equity Pg. 17 Our Portfolio Marketable Securities Pg. 27 22
Slide 23: Private Equity Performance over Centum 3.0
Private Equity Performance over Centum 3.0 Private Equity portfolio remains a significant driver of returns for the Group reflecting the success of our active portfolio management strategy Private Equity IRR 100% 82% 80% 60% 45% 40% 33% 33% 33% 27% 20% 0% Centum 2.0 FY15 FY16 FY17 FY18 Centum 3.0 Po
Slide 24: Private Equity Fund I
Private Equity| Fund I Successful Execution of our Investment Approach in Centum 3.0 Successful Exit Activities, FY14 – FY19 Year of Initial Exit KES million Initial FY14 FY15 FY16 FY17 FY18 Exit gains Investment Proceeds Investment UAP 2012 653 - 5,845 - - - 5,845 5,192 AoN Minet 1992 12 - - 1,028
Slide 25: Private Equity Fund I: Exit Transactions in FY19
Private Equity| Fund I Exit Transactions in FY19 GenAfrica Asset Managers Limited Investment Year 2013 Initial Investment (KES Mn) 1,050 Exit Proceeds (KES Mn) 2,324 Holding Period IRR 29% Agreement for Sale of Bottlers to CCBA • Signed an agreement on 10 June 2019 to sell the total combined stake i
Slide 26: Fast Moving Consumer Goods Portfolio
Private Equity Portfolio Fast Moving Consumer Goods Portfolio FMCG Sector Net Asset Value contribution KES 14,960 million | 24.6% | KES 22.48 per share Almasi Beverages Limited Stake: 53.9% Net Asset Value per share contribution: KES 12.60 per share | 15.9% The holding company owning three of Kenya’
Slide 27: Financial Services Portfolio
Private Equity Portfolio Financial Services Portfolio Financial Services Sector NAV contribution KES 2,426 million | 4.6% | KES 3.65 per share Sidian Bank Limited Stake: 77.0% Net Asset Value per share contribution: KES 4.64 per share | 6.3% A leading tier III bank SME focused commercial bank in Ken
Slide 28: Sidian Bank: Accelerated Growth in Non-funded Income
Sidian Bank Accelerated Growth in Non-funded Income 2013 2018 KES 8,694 million KES 13,134 million Loan Book Loan Book KES 9,165 million KES 17,001 million Customer Deposits Customer Deposits KES 1,868 million KES 4,037 million Shareholder Funds Shareholder Funds • The bank is on track to position i
Slide 29: “Others” Portfolio
Private Equity Portfolio “Others” Portfolio Others Sector NAV contribution KES 3,802 million | 7.2% | KES 5.71 per share Isuzu East Africa Stake: 17.8% Net Asset Value per share contribution: KES 2.90 per share | 3.7% Involved in the assembly of trucks, pick-ups and bus chassis via a complete knock
Slide 30: Private Equity Fund II Strategic Priorities
Private Equity| Fund II Strategic Priorities Centum Capital will reposition itself as an institutional private equity fund manager with the portfolio segmented into two business lines; Fund I and Fund II Fund II ‘KES 50 billion mid-market buyout/ growth fund focused on EA 7 Market Leaders March 2020
Slide 31: Development Portfolio Overview
Development Portfolio Overview Development Portfolio Net Asset Value contribution KES 2,025 million | 3.8% | KES 3.06 per share Sector Split – Development Portfolio as at March 2019 KES 5,497 million The development portfolio’s focus Assets under development 5% Development Assets as at FY19 is to ge
Slide 32: Development Portfolio Priorities in FY20
Development Portfolio Priorities in FY20 Greenblade Growers Limited Completed: Completed: Completed: Completed: • PPA secured, EPC and O&M contracts, • PPA secured, Debt term sheets • Construction completed • Opened up 20Ha for cultivation, Debt term sheets secured, NEMA secured, NEMA Approvals • Ob
Slide 33: Private Equity Portfolio Valuation as at 31 March 2019
Private Equity Portfolio Valuation as at 31 March 2019 Private Equity Portfolio Company Stake Sector Carrying Value Carrying Value Valuation Portfolio FY19 (KES million) FY18 (KES million) Method Almasi Beverages Limited 53.88% FMCG 9,851 8,697 FV3: Multiples - EV1/EBITDA Nairobi Bottlers Limited 27
Slide 34: Development Portfolio Valuation as at 31 March 2019
Development Portfolio Valuation as at 31 March 2019 Development Portfolio Company Stake Carrying Value Carrying Value Portfolio FY19 (KES million) FY18 (KES million) Amu Power Ltd 51.00% 2,098 2,144 Cost Akiira Geothermal Limited 37.50% 1,542 1,491 Cost ACE Holdings Limited 16.40% 711 556 Cost Green
Slide 35: Agenda
Agenda Real Estate Pg. 9 Private Equity Pg. 17 Our Portfolio Marketable Securities Pg. 27 35
Slide 36: Marketable Securities Performance over Centum 3.0
Marketable Securities Performance over Centum 3.0 Marketable Securities NAV contribution KES 4,450 million | 8.5% | KES 6.69 per share Performance Highlights & Cash Generation: FY14 – Annualized Performance: FY14 – FY19 FY19 15% 13% KES millions 10% Opening Portfolio 3,765 6% Net Cash to Centum (2,5
Slide 37: Marketable Securities Performance as at FY19
Marketable Securities Performance as at FY19 MSP vs. NSE 20 – Track Record Portfolio Allocation – 31 March 2019 7,000 Total Portfolio 0% 6,000 5,132 KES 4,450 million 5,000 4,000 41% 46% KES 3,000 2,000 1,010 1,000 13% 0 Cash & Equivalents Equities Mutual Funds Fixed Income Marketable Securities Por
Slide 38: Marketable Securities Portfolio Valuation as at 31 March 2019
Marketable Securities Portfolio Valuation as at 31 March 2019 Marketable Portfolio Company Stake Carrying Value Carrying Value Securities FY19 (KES million) FY18 (KES million) Centum Exotics Limited 100% 3,782 3,589 Market Price Centum QPE 100% 53 98 Market Price Receivables 100% 417 628 Cost Cash 1
Slide 39: Disclaimer
Disclaimer Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those presented in this report. The risks and uncertainties relating t
Slide 40: investorelations@centum.co.ke
investorelations@centum.co.ke Centum Investment Company Plc Tel +254 20 2286000 99h Floor, Southern Tower, Two Rivers Mobile +254 709 902 000 PO Box 10518-00100 Email investorelations@centum.co.ke Nairobi, Kenya www.centum.co.ke
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