Kina Securities Ltd. · ASX:KSL
Kina Securities — Investor Presentation (September 2020)
31 slides from Kina Securities's investor presentation, Sep 10, 2020
Slide 1: Equity Raising Investor Presentation
10 September 2020 ASX Markets Announcement Office PNGX Markets Exchange Centre Harbourside West Building 20 Bridge Street Unit 1B.02, Level 1, Stanley Esplanade Sydney NSW 2000 Down Town, Port Moresby 121 Australia Papua New Guinea BY ELECTRONIC LODGEMENT Equity Raising Investor Presentation Please
Slide 2: Equity Raising Investor Presentation
Equity Raising Investor Presentation Kina Securities Limited | 10 September 2020 Page 2 of 31
Slide 3: Contents
Contents Executive Summary ……………………….………….. 7 Kina Bank Overview …….................................... 9 Overview of Equity Raising …………………………. 10 Key Dates ………………………….…………………….. 11 Strategic Rationale ………………………….………… 13 Proforma Financials …………………………………… 15 PNG Economic Update ………………………………. 16 Key
Slide 4: Important Notice and Disclaimer
Important Notice and Disclaimer The following notice and disclaimer applies to this investor presentation ("Presentation") and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information contained in this Presentation. By accepting
Slide 5: Important Notice and Disclaimer
Important Notice and Disclaimer Not financial product advice: This Presentation does not constitute financial product or investment advice or any recommendation to acquire New Shares or accounting, legal or tax advice. Each recipient of this Presentation should make its own enquiries and investigati
Slide 6: Important Notice and Disclaimer
Important Notice and Disclaimer Forward looking statements and forecasts: This Presentation contains certain "forward-looking statements" that are based on management's beliefs, assumptions and expectations and on information currently available to management. Forward-looking statements can generall
Slide 7: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer: Neither Morgans Corporate Limited as the underwriter (“Underwriter”), nor any of their or Kina’s respective advisers nor any of their respective affiliates, related bodies corporate or shareholders, nor any of their respective directors, officers, partners
Slide 8: Executive Summary
Executive Summary KSL is conducting an equity raising to enhance its capital base and regulatory ratios With the exception of the strategic investment by ADB of USD 10 million in following the simplification of its corporate legal structure and to provide for December, 2019, KSL has not undertaken a
Slide 9: Executive Summary cont.
Executive Summary cont. Further important considerations: Single Borrower Limit: A key constraint of the current SBL of PGK 50 million is Kina’s ability to service larger SME’s Commercial and Corporate customers for ‘whole of wallet’ business. These include many national and multi-national organisat
Slide 10: Kina Bank Overview
Kina Bank Overview Financial Results Highlights Acquired ANZ business and deposits successfully with organic business and 1. Delivered on planned gains from ANZ acquisition. significant progress made on strategic initiatives to deliver strong growth. 2. Completed tech build to provide MiBank with PO
Slide 11: Overview of Equity Raising
Overview of Equity Raising Offer Size and Structure • Equity Raising up to approximately A$ 91 million / K 224 million1 comprising: • A$ 10.5 million underwritten institutional placement (“Placement”); • A$ 70 million underwritten 1 for 2 accelerated pro rata non-renounceable Entitlement Offer (“Ent
Slide 12: Key Dates
Key Dates Announcement of Equity Raising and enter trading halt Thursday 10 September 2020 Placement and Accelerated Non-Renounceable Entitlement Offer opens 10.00am (AEST) Thursday 10 September 2020 Placement and Accelerated Non-Renounceable Entitlement Offer closes 6.00pm (AEST) Friday 11 Septembe
Slide 13: Key Dates cont.
Key Dates cont. Announcement of results of Retail Entitlement Offer and notification of any shortfall Tuesday 6 October 2020 Settlement of Retail Entitlement Offer Wednesday 7 October 2020 Allotment and issue of new Shares under the Retail Entitlement Offer Thursday 8 October 2020 Quotation of share
Slide 14: Strategic Rationale
Strategic Rationale • As reported in the recent H1FY2020 results, Kina Bank continues to see significant additional growth opportunities, both organic and inorganic, across its new and existing customer base both in terms of additional services from existing clients and market share gains from compe
Slide 15: 2025 Strategic Plan – Visual
2025 Strategic Plan – Visual The 2025 Strategy describes how Kina Bank will grow market share and financial results, build resilience and achieve competitive advantage from 2020 to 2025. It provides target state business models (including optionality), implementation phasing, and an execution framew
Slide 16: Proforma Financials
Proforma Financials Notes:- All figures in PGK Millions Post Capital Raise Pre - Issue Balance Sheet • The proforma balance sheet is provided for illustrative purposes and Amalgamated Business Capital Assets 30/06/2020 31/07/2020 Raise Balance Sheet includes estimates and not forecasts. Cash and equ
Slide 17: PNG Economic Update
PNG Economic Update • Domestic environment sees new macro-economic challenges, most prominent is Covid-19. PNG Govt. Announced PGK 5.6 billion economic support package adding to fiscal issues. • They have also secured USD 363 million assistance from IMF’s Covid-19 relief fund, an additional USD 550
Slide 18: Key Corporate and Transaction Risks
Key Corporate and Transaction Risks General economic and share The performance of Kina, in common with other companies, is subject to general economic conditions, movements in interest and inflation rates, and currency exchange rates which may have an adverse effect on Kina’s activities, as well as
Slide 19: Key Corporate and Transaction Risks
Key Corporate and Transaction Risks Compliance with laws, A number of laws and regulations apply to the businesses carried on by entities within the Group. Entities within the Group are supervised by one or more regulatory authorities which have broad administrative powers over the businesses operat
Slide 20: Key Corporate and Transaction Risks
Key Corporate and Transaction Risks Market risk Kina is exposed to market risk as a consequence of both its investments and trading activities in financial markets and through asset and liability management of its balance sheet. In Kina’s financial market trading business, it is possibly exposed to
Slide 21: Key Corporate and Transaction Risks
Key Corporate and Transaction Risks Investment performance Kina has a significant investment portfolio, which consists of: - commercial bills with BPNG, treasury bills and government-inscribed stock with the PNG Government; - a share portfolio of local shares; vacant land in Port Moresby; and shareh
Slide 22: Key Corporate and Transaction Risks
Key Corporate and Transaction Risks Reputational damage Kina’s ability to attract and retain customers and investors and its prospects could be adversely affected if Kina’s reputation is damaged. There are various potential sources of reputational damage including potential conflicts of interest, pr
Slide 23: Key Corporate and Transaction Risks
Key Corporate and Transaction Risks PNG liquidity and realisation Whilst Kina is listed in PNG, trading on the PNGX is very limited, largely because of the illiquid nature of the PNG investment market. Accordingly, there may be relatively few or many potential buyers or sellers of Shares on PNGX at
Slide 24: Key Corporate and Transaction Risks
Key Corporate and Transaction Risks Dividends Any future determination as to the payment of dividends by Kina will be at the discretion of the Directors and will depend on the financial condition of Kina, future capital requirements and general business and other factors considered relevant by the D
Slide 25: Key Corporate and Transaction Risks
Key Corporate and Transaction Risks [Continued...] • ASX or PNGX makes any official statement or otherwise indicates that it will not grant permission for the official quotation of the shares under the Entitlement Offer and Placement or permission for the official quotation of the shares under the o
Slide 26: Key Corporate and Transaction Risks
Key Corporate and Transaction Risks [Continued...] • The offer materials or any aspect of the offer does not comply with the Corporations Act, the Listing Rules, the ASX Waivers, the PNGX Listing Rules, the PNGX Waivers or any other applicable law or regulation • There is a change in the chief execu
Slide 27: Selling Restrictions
Selling Restrictions The contents in this document may only be used for the transaction in which Rimon Law has provided foreign securities law advice. The defined “New Shares” and the “Company” in this document may need to be changed for purposes of consistency with the remainder of the investor pre
Slide 28: Selling Restrictions
Selling Restrictions International Offer Restrictions This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any co
Slide 29: Supplementary Information
Supplementary Information Kina Securities Limited | HalfYear Results 30 June 2020. http://investors.kinabank.com.pg/investors/?page=asx-announcements 28 Page 29 of 31
Slide 30: Kina Bank SME Customers
MD JELENA TAMATE CHEF JULZ HENAO FASHION DESIGNER TABU WARUPI Kina Bank SME Customer Kina Bank SME Customer Kina Bank SME Customer Built PNG’s largest event and production company, Turned his passion for food into Inspired by PNG’s landscape, transformed her pioneering a national online following. a
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Wkinabank Page 31 of 31
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