Kuwait Financial Centre Kpsc · KSE:MARKAZ
Kuwait Financial Centre Kpsc — FY2018 Earnings Presentation
21 slides from Kuwait Financial Centre Kpsc's earnings presentation, 2019
Slide 1: Earnings Presentation 2018
Kuwait Financial Centre K.P.S.C. "Markaz" (Boursa Kuwait: MARKAZ) Earnings Presentation 2018 Asset Management | Investment Banking
Slide 2: Discussion Agenda
Discussion Agenda 2018 Performance Highlights ……………..…….… 3 Markaz Overview …………...………...................… 6 Business and Financial Highlights………..….….… 9 Shareholders Information ………………………..… 19 2
Slide 3: 2018 Performance Highlights
2018 Performance Highlights Markaz Assets Under Management Five Year High of KD 1.09 billion Profit and Loss Highlights Balance Sheet Highlights KD 15.30 mn Growth: (0.6)% 2018 Cash dividend3 of 4 Fils per share; payout of 80.0% Total Revenue1 2017 Cash dividend of 7 Fils per share; payout of 77.8%
Slide 4: 2018 Performance Highlights
2018 Performance Highlights Commenting on the performance, Mr. Diraar Yusuf Alghanim, Chairman of Markaz said: marketable securities and equity participation. Markaz assets under “With unprecedented GCC geopolitical risk in 2018, Markaz delivered a relatively excellent performance management at the
Slide 5: 2018 Performance Highlights
2018 Performance Highlights The prevailing sentiment in the real estate market across the GCC region designed to capitalize on value-add opportunities in the U.S. and a selected continues to remain weak, reducing rental rates and sale values by 15% European markets. during 2018 in the UAE and Saudi
Slide 6: Markaz Overview
Markaz Overview A leading financial institution in the region delivering consistent shareholder returns Leading market position Sustainable long-term Building a sustainable Our Team, the cornerstone of shareholder returns economy in Kuwait our success As one of the region’s leading Generates sustain
Slide 7: Markaz Overview (cont’d)
Markaz Overview (cont’d) Delivering International Investment Reach to our Clients Germany US Kuwait Qatar Bahrain Oman KSA India UAE Egypt Lebanon Jordan Equity Funds Fixed Income MENA Real Estate Investments International Real Estate Investment Banking Advisory Offices 7
Slide 8: Markaz Overview (cont’d)
Markaz Overview (cont’d) One of the most recognized and well awarded brands across the MENA region Best Asset Manager Best Investment Bank in Research Provider of the Most Innovative Financial in Kuwait Kuwait Year Institution in the By: Global Finance & Middle East By: EMEA Finance EMEA Finance By:
Slide 9: Business Highlights
Business Highlights Total AUM of KD 1.09 billion, an increase of 6.4% from December 2017 Asset Management Real Estate Investments GCC Equity Funds, Fixed Income Fund, Others Middle East and North Africa, International Total AUM of KD 712.8 million Total AUM KD 380.1 million Asset management contin
Slide 10: Business Highlights (cont’d)
Business Highlights (cont’d) Adding significant value to clients through high quality advisory services and research Investment Banking Research M&A, Advisory, Equity & Debt Capital Markets, IPOs, Restructuring Mena focused Research, Consulting Services Total transaction value executed up to Dec 2
Slide 11: Financials Trend
Financials Trend Stable Revenues in 2018 Lower profitability in 2018 Management Fees & Commissions contributed 58.4% of Total Profitability was impacted due to Impairment of Investment Revenue and increased by 22.3% Properties of KD 2.34 million Investment Banking Fees increased by 140% Asse
Slide 12: Financials Trend (cont’d)
Financials Trend (cont’d) Return on shareholder’s Equity1 Dividend per Share2 and Payout Return on shareholder’s Equity of 3% is lower in 2018 due to Consistent dividend payouts with 200 bps increase in 2018 Impairment of Investment Properties of KD 2.34 million payout ratio over last year Ret
Slide 13: Profit & Loss Key Metrics
Profit & Loss Key Metrics Full Year Y-o-Y 2018 Income Analysis (KWD 000's) 2018 2017 Growth (%) Management Fees and Commission 8,930 7,302 22% Other Sources of Income Interest Income 679 722 (6%) KD (0.06) mn (0.4)% Dividend Income 1,493 1,283 16% Gain from Investments at Fair Value through P/L 3,47
Slide 14: Balance Sheet Key Metrics
Balance Sheet Key Metrics (KWD 000's) Dec Dec 2018 2017 ASSETS Cash and Bank balances 4,691 7,622 Time Deposits 2,565 1,430 Asset Under Management Investments at fair value through profit or loss 92,674 49,498 Available for sale Investments 0 49,842 Debt instruments at fair value through other compr
Slide 15: Asset Management & Investment Banking
Asset Management & Investment Banking Management Fees & Commission (KD 000’s) CAGR 4.2% 8,930 7,580 7,359 7,782 7,302 2014 2015 2016 2017 2018 Asset Management Fees1 (KD 000’s) Investment Banking Fees (KD 000’s) CAGR CAGR 2.1% 16.4% 7,206 1,724 1,436 6,641 6,594 6,346 939 719 6,583 765 2014 2015 201
Slide 16: Asset Management Fees Income
Asset Management Fees Income Asset Management Fees1 (KD 000’s) AUM (KD million) 1,089 1,093 7,206 1,027 1,027 6,641 6,594 6,346 6,583 935 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Management Fees Percentage 0.64% 0.68% 0.66% 0.61% 0.61% 2014 2015 2016 2017 2018 1. Asset Management includes G
Slide 17: Return on Principal Investments
Return on Principal Investments Income Returns (KD 000’s) Investment Assets1 (KD million) 8,058 161 6,676 6,428 127 128 149 5,576 131 3,010 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Income Returns (%) 5.4% 5.1% 4.4% 4.0% 2.4% 2014 2015 2016 2017 2018 1. Investment Assets include Investments
Slide 18: Capital Structure and Returns
Capital Structure and Returns Markaz maintained Net Debt to Total Equity of 0.35x (KD 000's) Dec 2018 Dec 2017 Dec 2016 Return on Assets1,2 (%) Term Loan 22,565 17,516 8,146 2.8% 2.7% 2.6% Bonds Issued 25,000 25,000 25,000 1.9% Total Debt 47,565 42,516 33,146 1.3% Cash and Bank Balance 4,691 7,622 1
Slide 19: Shareholders Information
Shareholders Information Focused on sustainable value creation for shareholders Major Shareholders Corporate Information Main Market – Boursa Kuwait Major Shareholders Type % Holding Market Segment Listing (Sec Code: 213) Kuwait Pillars for Financial 2018 Dividends Proposed Cash Dividend – 4% Direct
Slide 20: Disclaimer
Disclaimer This document has been prepared by Churchgate Partners for Kuwait Financial Centre K.P.S.C. (“Markaz”) investors, solely for informational purposes. This presentation may contain statements that are not historical facts, referred to as “forward looking statements” .The information contain
Slide 21: Kuwait Financial Centre K.P.S.C. "Markaz"
Kuwait Financial Centre K.P.S.C. "Markaz" P.O. Box 23444, Safat 13095 State of Kuwait Tel: +965 2224 8000 Fax: +965 2242 5828 Email: info@markaz.com www.markaz.com
Kuwait Financial Centre K.P.S.C. (Markaz) — FY2018 Earnings Presentation on 6ix