Emirates Central Cooling Systems Corporation Pjsc · DFM:EMPOWER
Emirates Central Cooling Systems Corporation Pjsc — Q3 2024 Earnings Presentation
26 slides from Emirates Central Cooling Systems Corporation Pjsc's earnings presentation, 2024
Slide 1: Next-Gen Sustainability Champion Disrupting The Cooling World
Next-Gen Sustainability Champion Disrupting The Cooling World Earnings Call | Q3 2024 1 1
Slide 2: Today’s Presenters
Today’s Presenters Ramesh Ramadurai Edgar Qureshi Chief Financial Officer Chief Commercial Officer 20 years with EMPOWER 20 years with EMPOWER 2
Slide 3: Disclaimer
Disclaimer The information contained herein has been prepared by Emirates Central Cooling Systems Corporation PJSC (“Empower”) or the “Company” or the “Group”. This contains information in summary form and does not purport to be complete. Some of the information relied on by Empower is obtained from
Slide 4: Empower: A Compelling Investment Opportunity
Empower: A Compelling Investment Opportunity District Cooling is considered as one of the important pillars of Dubai’s energy strategy that aims to increase its penetration from the current level of circa. 25% to 40% by 2030 Eco-efficient World’s Largest 1,552k RT 1,754k RT Clear roadmap c.50% elect
Slide 5: Key Highlights – YTD Q3/24
Key Highlights – YTD Q3/24 Empower continued with its robust operational and financial performance during YTD Q3/24 with growing Revenue, EBITDA and Profit before Tax 2,307 m AED 1,124 m Consumption EBITDA RTh 1,552 k 4.7% 1,506 hrs Connected RT 235 m RTh EFLH AED 3,508 m 40 k RT 5.5% Net Debt Net D
Slide 6: Macroeconomic Overview
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Slide 7: Macroeconomic Overview
Macroeconomic Overview UAE’s real GDP is expected to grow at the rate 4%+ in 2024/25 As per CBUAE Growth expected for • 2024 - 4% • 2025 - 6% Non-hydrocarbon GDP growth will continue to outperform GDP growth forecast 2024 Expected 5.2% Highest level of projects awarded in 2023 – USD 88.1 Billion
Slide 8: Dubai Continues to Attract Businesses, Talent and Capital
Dubai Continues to Attract Businesses, Talent and Capital Dubai Chamber of Commerce reports a growth of 5% YOY in new Dubai’s population surpassed 3.6 million companies Plans to double its population to 7.8 million by 2040 34,075 new companies joined as members during H1 2024, (Dubai 2040 Urban
Slide 9: Real Estate Sector Posts Robust Growth
Real Estate Sector Posts Robust Growth 94 92 90 88 86 84 82 80 78 76 74 1H2022 2H2023 1H2013 2H2013 1H2014 2H2014 1H2015 2H2015 1H2016 2H2016 1H2017 2H2017 1H2018 2H2018 1H2019 2H2019 1H2020 2H2020 1H2021 2H2021 2H2022 1H2023 Source: Real Estate Economic Research 1H = January 2H = July Real Estate G
Slide 10: Performance Highlights YTD Q3/24
Performance Highlights YTD Q3/24 10
Slide 11: Performance Snapshots
Performance Snapshots Revenue (AED mn) EBITDA (AED mn) 14.1% 6.2% 4.7% 2.8% 13.3% 8.7% 8.0% 5.3% 3,035 1,461 2,793 1,376 2,464 2,270 2,451 1,206 1,073 1,124 1,045 1,100 419 431 2021 2022 2023 9M' 23 9M' 24 Q3-23 Q3-24 2021 2022 2023 9M' 23 9M' 24 Q3-23 Q3-24 Net Profit Before Tax (AED mn) Net Profit
Slide 12: Prudent Leverage Underpinning Attractive Dividends
Prudent Leverage Underpinning Attractive Dividends Net Debt (AED mn) Dividend Payments (AED mn) Dividend Payout Ratio % Gross & Net Debt / EBITDA 2021 2022 2023 9M’ 2024 44% 351% 87% 90% Gross Debt / EBITDA (x) 1.6x 3.3x 3.1x 3.6x 3,400 Net Debt / EBITDA (x) 0.5x 2.2x 2.7x 2.3x One-time special divi
Slide 13: Financial Highlights – Quarterly Performance
Financial Highlights – Quarterly Performance Year Q1 Q2 Q3 Q4 YTD Q3 Annual 2023 AED 494m AED 731m AED 1,045m AED 765m AED 2,270m AED 3,035m Revenue 2024 AED 538m AED 814m AED 1,100m AED 2,451m 2023 AED 284m AED 371m AED 419m AED 387m AED 1,073m AED 1,461m EBITDA 2024 AED 313m AED 380m AED 431m AED
Slide 14: Overview of Key Projects in Dubai with Site Capacity
STRICTLY PRIVATE AND CONFIDENTIAL Overview of Key Projects in Dubai with Site Capacity Meydan Business Bay Jumeirah Village South Palm Jumeirah Jumeirah Lake Towers Dubai Production City 382k RT 452k RT 260 RT 225k RT 150k RT 125k RT Dubailand Residential Dubai International Airport TECOM (A, B, C)
Slide 15: Capacity Outlook and Guidance
Capacity Outlook and Guidance Connected Capacity (k RT) +413 RT (7.2% CAGR) 1,725 – 1,750 1,552 1,405 1,368 992 2017 2021 Additions in 2022E 2022 Q3-2024 2024E Potential RT Capacity by 2026E Empower signed agreement to provide DCS services to • Expected Connected Capacity Q4/24 - 2026: Additions of
Slide 16: Sustainability Overview
EMPOWER ENERGY SOLUTIONS Sustainability Overview
Slide 17: Integrating Sustainability in our Business Strategy
Integrating Sustainability in our Business Strategy Empower’s strategic framework harnesses 6 pillars to redefine global cooling solutions, emphasizing eco-innovation, technological advancement and operational excellence for sustainable urban development. Model Pillars of ESG Excellence in Operation
Slide 18: Share Price Performance & Analyst Coverage
Share Price Performance & Analyst Coverage Share Price 1.92 1.89 1.85 1.76 1.80 1.79 1.73 1.71 1.75 1.72 1.73 1.75 1.75 1.65 1.66 1.64 1.65 1.65 1.58 1.59 1.49 1.53 1.42 1.46 1.34 Dividend (AED Millions) 425 425 425 425 Dividend per share (AED) 0.0425 0.0425 0.0425 0.0425 Analysts Coverage Firm Name
Slide 19: EMPOWER’s Investment Thesis–Growing Total Return Sustainability Enabler
STRICTLY PRIVATE AND CONFIDENTIAL EMPOWER’s Investment Thesis–Growing Total Return Sustainability Enabler Proven Track Record of Growth and Market Leadership Highly Visible Cash Flows and Resilient Business Model Compelling Long-term Macro Growth Trends in UAE and Dubai Strongly Positioned to Capita
Slide 20: Q&A
Q&A 20 20
Slide 21: EMPOWER | Investor Relations Contact
EMPOWER | Investor Relations Contact investor.relations@empower.ae Chander Teckchandani Investor Tel: +971 4 375 1236 Dubai - UAE Deepak Lachhwani Relations https://www.empower.ae/investor-relations/ 21
Slide 22: Appendix
APPENDIX 22 22
Slide 23: Income Statement
Income Statement Key Highlights 9M’ 2024 9M’ 2023 Variance Particulars AED'000 % AED'000 % AED'000 % 1) Interest on financial asset - Financial asset represents upfront Revenue 2,451,461 100.0% 2,269,503 100.0% 181,958 8.0% consideration paid by Empower against which demand charges will be settled b
Slide 24: Balance Sheet
Balance Sheet Key Highlights 30-Sep-24 31-Dec-23 Variance Particulars AED'000 AED'000 AED'000 % 1) Financial assets include demand/capacity charge receivable from Dubai Airport and Nakheel Property, plant and equipment 7,080,900 6,934,815 146,085 2.1% 2) Cash and cash equivalents increased by AED 1,
Slide 25: Cashflow Statement
Cashflow Statement YTD Sep 2024 YTD Sep 2023 Variance Variance Particulars Key Highlights AED'000 AED'000 AED'000 % 1) Increase in Settlement of financial assets is due to recording Profit before non-cash expenditure 829,433 787,902 41,531 5.3% and realization of Demand charges resulting from Acquis
Slide 26: Thank You
Thank You 26 26
Emirates Central Cooling Systems Corporation PJSC (Empower) — Q3 2024 Earnings Presentation on 6ix