National Central Cooling Co. (p.s.c.) (tabreed) · DFM:TABREED
National Central Cooling Co. (p.s.c.) (tabreed) — National Central Cooling Company PJSC (Tabreed) — FY2020 Earnings Presentation
23 slides from National Central Cooling Co. (p.s.c.) (tabreed)'s earnings presentation, Feb 15, 2021
Slide 1: Full Year 2020 Earnings Presentation
National Central Cooling Company PJSC (DFM:TABREED) Full Year 2020 Earnings Presentation 15 February 2021
Slide 2: Disclaimer
Disclaimer • These materials have been prepared by and are the sole responsibility of the • No person is authorized to give any information or to make any representation National Central Cooling Company PJSC, ‘Tabreed’ (the “Company”). These not contained in and not consistent with these materials a
Slide 3: Agenda
Agenda 1. Introduction and 2020 Review 2. Performance Highlights 3. Financial Results 4. Conclusion NATIONAL CENTRAL COOLING COMPANY PJSC 3
Slide 4: 1. Introduction and 2020 Review
1. Introduction and 2020 Review
Slide 5: Tabreed at a Glance
Tabreed at a Glance One of the world’s largest district cooling companies 86 Equivalent to cooling plants in 1.40m RT 140 5 countries delivered to clients towers the size of Burj Khalifa Environmentally responsible operations reducing green house gas emissions 2.26 billion kWh 1.35 million tons annu
Slide 6: 2020 Overview
2020 Overview Developed strong platform to support future growth opportunities Significant growth achieved through Downtown DCP and Successfully accessed Saadiyat Island both corporate and acquisitions. Downtown capital debt markets. DCP improved market Strong financial Investment grade position to
Slide 7: Resilient Business Model
Resilient Business Model 2020 performance is testament to Tabreed’s resilient business model ▪ Capacity growth of at 9% per annum since 2017 ▪ 2020 capacity grew at 19%; primarily through acquisition of Capacity Growth Downtown Dubai and Saadiyat concessions ▪ Revenue and earnings visibility provide
Slide 8: Masdar: One of the World's Most Sustainable Urban Communities
Masdar: One of the World’s Most Sustainable Urban Communities Sustainability is the key ethos of Masdar City, sharing Tabreed’s vision of efficient and low-emission urban developments ▪ Acquired Masdar City district cooling concession ▪ Ultimately will provide efficient cooling services to more than
Slide 9: Downtown DCP: A Historic Achievement for Tabreed and a Transformational Transaction
Downtown DCP: A Historic Achievement for Tabreed and a Transformational Transaction Reinforcing Tabreed’s position as the global district cooling industry leader and improving position to #2 from #4 in Dubai ▪ Acquired 80% of Emaar’s Dubai Downtown District Cooling business ▪ Signed a long-term conc
Slide 10: Saadiyat Island: Cooling Abu Dhabi's Most Prestigious Developments
Saadiyat Island: Cooling Abu Dhabi’s Most Prestigious Developments Saadiyat Further Island: strengthening Cooling to AbuTabreed’s Dhabi’s most prestigious presence developments in Abu Dhabi ▪ Acquired Saadiyat Island District Cooling assets from Aldar Properties. The transaction was signed in 2020 a
Slide 11: Strong Credit Profile
Strong Credit Profile Capitalization and efficient working capital utilization to support near term growth • 5 year, US$ 692m Senior Unsecured Term Loan ▪ Investment grade rating retained by Moody’s (Baa3) and Fitch (BBB) • Bullet Repayment in 2025 • To acquire Downtown DCP assets ▪ Interest costs f
Slide 12: Organic Capacity Growth (kRT)
Connected Capacity Consolidated Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 UAE 724 871 872 882 928 Bahrain 28 32 32 32 32 Oman 32 32 32 32 32 Total Consolidated 784 936 936 947 992 Equity Accounted Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 UAE 71 71 71 71 71 Qatar 218 224 224 224 230 KSA 110 110 110 110
Slide 13: 2. Performance Highlights
fl tabreed Sustainable Cooling 2. Performance Highlights
Slide 14: Performance Highlights
Performance Highlights Financial Highlights: 12M 2020 vs. 12M 2019 AED 1,687m AED 1,741m AED 970m AED 550m 11.5 Fils +15.8% +14.5% +27.1% +16.5% +9.5% Chilled Water Revenue Total Revenue EBITDA Net Income Dividend Performance Highlights • Chilled Water revenue grew 15.8%. Total Revenue increased by
Slide 15: Headline Performance
Headline Performance UAE Other • Providing over 1.40m RT of cooling across GCC – grown at Long-term 9% CAGR since 2017 Group Connected Capacity (kRT) contracts with • Long term contracts (~25 years) mean over 90% of 1,092 1,131 1,183 1,404 405 credit worthy contracted capacity locked in for at least
Slide 16: 3. Financial Results
fl tabreed Sustainable Cooling 3. Financial Results
Slide 17: Income Statement
Income Statement Consolidated Financials (AED m) 2020 2019 Variance % Revenue 1,741 1,520 221 15% Chilled water revenue (97%) 1,687 1,456 230 16% Value chain businesses (3%) 54 64 (10) -16% Operating cost (886) (768) (119) 15% Gross Profit 855 753 102 14% Gross profit margin 49% 50% Administrative a
Slide 18: Financial Position
Financial Position Consolidated Financials (AED m) Dec 31, 2020 Dec 31, 2019 Variance % Fixed Assets 8,011 7,288 723 10% Intangibles 2,360 29 2,332 - Associates and Joint Ventures 358 732 (374) -51% Accounts Receivable 898 593 305 51% Cash and Short-Term Deposits 1,313 227 1,086 Other Assets 42 35 8
Slide 19: Cash Flow Statement
Cash Flow Statement Consolidated Financials (AED m) 2020 2019 Variance % Profit from Operations 630 532 98 18% Finance lease amortization 118 61 57 93% Depreciation and Amortization 222 170 52 31% Working Capital and other adjustments (341) 19 (360) Net cash flows from Operating Activities 629 782 (
Slide 20: Debt Portfolio and Return Ratios
Debt Portfolio and Return Ratios • Consistent improvement in return ratios • Current gearing of 53% (vs. 39% in Dec 2019); Increase in debt in 2020 due to financing of USD 692m for Downtown DCP and issuing non convertible bond of USD 500m • No significant financing required until 2025 when Sukuk mat
Slide 21: 4. Conclusion
fl tabreed Sustainable Cooling 4. Conclusion
Slide 22: Key Highlights
Key Highlights ▪ Chilled Water revenue grew 15.8%. ▪ Signed an agreement with Miral to Total Revenue increased by 14.5% provide district cooling services to SeaWorld Abu Dhabi ▪ EBITDA increased by 27.1% to AED 970m and EBITDA margins ▪ Acquired Saadiyat Island District increased from 50% to 56% Coo
Slide 23: Contact Us
Contact Us Bijay Sharma Churchgate Partners Email: Tabreed@churchgatepartners.com Richard Rose Salik Malik SVP, Finance Head, Financial Planning & Analysis Tel: +971 2 2020400 Tel: +971 2 2020397 Email: IR@tabreed.ae Email: SMalik@tabreed.ae NATIONAL CENTRAL COOLING COMPANY PJSC
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