National Central Cooling Co. (p.s.c.) (tabreed) · DFM:TABREED
National Central Cooling Co. (p.s.c.) (tabreed) — National Central Cooling Company PJSC (Tabreed) — FY2019 Earnings Presentation
20 slides from National Central Cooling Co. (p.s.c.) (tabreed)'s earnings presentation, Jan 28, 2020
Slide 1: National Central Cooling Company PJSC Full Year 2019 Earnings Presentation
National Central Cooling Company PJSC (DFM:TABREED) Full Year 2019 Earnings Presentation 28 January 2020
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 Performance Highlights 2. Financial Results 3. Conclusion NATIONAL CENTRAL COOLING COMPANY PJSC 3
Slide 4: 1. Introduction and Performance Highlights
1. Introduction and Performance Highlights
Slide 5: Performance Highlights
Performance Highlights Financial Highlights: 2019 vs. 2018 AED 1,520m AED 1,456m AED 763m AED 472m 10.5 fils +5% +7% +10% +11% +1.0 fils Total Revenue Chilled Water EBITDA Net Income Proposed Revenue Dividend Financial and Operational Performance • Total Revenue growth at 5.1% and Chilled Water reve
Slide 6: Corporate Developments
Corporate Developments Strategy delivering growth led by both organic and inorganic initiatives Acquisition and Operational New plants investments New partnership Efficiencies • Added six plants during • Acquired two district • Signed a partnership • Integrated data-based the year, taking total cool
Slide 7: Tabreed at a Glance
Tabreed at a Glance One of the world’s largest district cooling companies Equivalent to cooling 80 plants in 1.18m RT 118 5 countries delivered to clients towers the size of Burj Khalifa Environmentally responsible operations reducing green house gas emissions 2.06 billion kWh 1.23 million tons annu
Slide 8: Regional Presence
Regional Presence The only publicly listed and regional district cooling company in the world National Central Cooling Company and its UAE investments • 5 GCC countries | 80 plants | 1.18m tons of cooling • 59 consolidated plants, 8 held through associates and joint ventures • Plants in 6 emirates o
Slide 9: Connected Capacity
Connected Capacity • Previously announced capacity guidance of 65,000 RT to be added in 2019 and 2020 • Added 51,336 RT during 2019 across the region. Connected 21,488 RT during Q4 2019 including new connections in UAE, Bahrain and Saudi Arabia • Q4 2019 new connections also include two plants acqui
Slide 10: Connected Capacity Growth Trend
Connected Capacity Growth Trend • At the beginning of each year Tabreed provides guidance on capacity additions over the next two years • Tabreed has been able to deliver more than the expected growth year on year basis • In 2019, Tabreed delivered 67% (44k RT) of the guided 2019-20 capacity (65k RT
Slide 11: Group Connected Capacity and Revenue Headline Performance
Headline Performance UAE Other • Providing over 1.18m RT of cooling across GCC – growing 4% Long-term annually since 2016 Group Connected 1,131 1,183 Capacity (kRT) contracts with • Long term contracts (~25 years) mean over 90% of 1,048 1,092 321 358 388 credit worthy contracted capacity locked in f
Slide 12: 2. Financial Results
fl tabreed Sustainable Cooling 2. Financial Rest
Slide 13: Income Statement
Income Statement Consolidated Financials (AED m) 2019 2018 Variance % Revenue 1,520 1,447 73 5% Chilled water revenue (96%) 1,456 1,361 95 7% Value chain businesses (4%) 64 86 (22) -26% Operating cost (768) (784) 16 -2% Gross Profit 753 663 90 14% Gross profit margin 50% 46% Administrative and other
Slide 14: Financial Position
Financial Position Consolidated Financials (AED m) Dec 31, 2019 Dec 31, 2018 Variance % Fixed Assets 7,288 7,026 262 4% Associates and Joint Ventures 732 579 153 26% Accounts Receivable 593 568 25 4% Cash and Short Term Deposits 227 249 (22) -9% Other Assets 63 61 2 3% Total Assets 8,904 8,484 419 5
Slide 15: Cash Flow Statement
Cash Flow Statement Consolidated Financials (AED m) 2019 2018 Variance % Profit from Operations 532 459 73 16% Finance lease amortization 61 85 (25) -29% Depreciation 170 150 20 14% Working Capital and other adjustments 19 (32) 51 -158% Net cash flows from Operating Activities 782 662 120 18% Capita
Slide 16: Debt Portfolio and Return Ratios
Debt Portfolio and Return Ratios • Current gearing of 39% (vs. 39% in Dec 2018); Increase in debt in 2019 due to implementation of IFRS 16 • No significant debt repayments until the Sukuk matures in 2025 • Strong improvement in Net Debt to EBITDA ratio as EBITDA continues to grow and debt declines •
Slide 17: 3. Conclusion
fl tabreed Sustainable Cooling 3. Conclusion)
Slide 18: Unique GCC-wide Infrastructure Assets Company
Unique GCC-wide Infrastructure Assets Company Why District • District Cooling is a critical part of the growing GCC infrastructure Cooling? • District Cooling is 50% more energy efficient than conventional cooling and 16% cheaper for the customer • One of the largest district cooling companies in th
Slide 19: Contact Us
Contact Us Saket Somani Churchgate Partners Tel: +971 4 3132432 Email: Tabreed@churchgatepartners.com Richard Rose Salik Malik Chief Financial Officer (Acting) Head, Financial Planning & Analysis Tel: +971 2 2020400 Tel: +971 2 2020397 Email: IR@tabreed.ae Email: SMalik@tabreed.ae NATIONAL CENTRAL C
Slide 20: Stable Core Business Model Delivering Consistent Performance
Stable Core Business Model Delivering Consistent Performance Business Model - Profit Statement (% of revenue)* Billing structure and profitability Capacity Consumption • Tabreed bills customers for capacity Chilled Water (fixed) (variable) Total (fixed) charges and consumption Revenue, net of amorti
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