Kuwait Projects Company Holding (K.S.C.P.) · KSE:KPROJ
Kuwait Projects Company Holding (K.S.C.P.) — Kipco — Debt Investor Presentation (July 2023)
35 slides from Kuwait Projects Company Holding (K.S.C.P.)'s debt investor presentation, July 2023
Slide 1: KIPCO July 2023
gauS KIPCO July 2023
Slide 2: Disclaimer
Disclaimer This presentation has been made for informational purposes and does not involve an invitation to subscribe to, purchase, or sell any security. No warranty is given on the accuracy or completeness of the information in this presentation. Independent research is recommended to evaluate and
Slide 3: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS
Slide 4: Our business, strategy and team
Our business, strategy and team... ’ b SS 5 Our Business Investment holding company majority owned by the family office of the Kuwaiti ruling family + Total assets of US$38.6bn'; operating across the GCC and wider MENA region; presence in over 20 countries + Multi-sector operator: commercial banking
Slide 5: Recent updates
Recent updates > bhp» GIG sale transaction Transaction overview In April 2023, KIPCO signed a binding agreement to sell KIPCO Group’s stake in GIG to Fairfax for US$86omn i.e. KD2/share Profit from the sale is expected to be in the range of KD70-80 million Subject to regulatory approvals, the transa
Slide 6: Key investment highlights
Key investment highlights ’s p SS 5 Diversified ? Portfolio Ruling Family “a Shareholders Quality assets Spread across 10 sectors and 20+ countries across multiple industries at different stages in the business life-cycle Majority of portfolio in high rated GCC region Benefits from growth and econom
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Slide 8: Diversified portfolio
Diversified portfolio... Petrochemical and Oil Services Equate | TKOC KPPC | TKSC NAPESCO | UOP \ y, pri ia SeRSM WAT VAAN XY y, Food & Beverages AMIB KAMCO Media Insurance Healthcare Logistics & Real Estate Each sector's contri bution to portfol io: 25%-30% 25%-30% ©.15% 5-7% 5-7% 5-7% 5-7% 5-7%
Slide 9: Supportive shareholders
Supportive shareholders , p p \ KIPCO’s single largest shareholder is Al Futtooh Holding Company K.S.C. (Closed) (AFH), a Kuwaiti company owned by family office of the Kuwaiti ruling family * Post merger, AFH continues to be the largest shareholder with c.32% ownership * Has supported KIPCO in all i
Slide 10: Quality assets: market leadership of key portfolio companies
Quality assets: market leadership of key portfolio companies ) |) \ 2 g a RURGAN RANK KAMCO #2 HEA #1 #2 Conventional bank in Kuwait! Insurer in Kuwait?, Bahrain’, Jordan® & Egypt® Among top three insurers in MENA region Asset manager in Kuwait with highest AUM Listed real estate player on Boursa Ku
Slide 11: Controlling or significant stakes in key portfolio companies
° ° og ° ° ° Yo \ Controlling or significant stakes in key portfolio companies ’ ) \ K_/ KAMCO @ seas Group Effective 62% 6% 45% 41% 91% 56%2 70% 66% 59% 61% Stakes! Board 8of1 10f10 4of10 50f9 50f8 4of5 3 of 74 5 of7 4ot7 4of5 Representation weSeep 2,256 Unlisted 1,604 2,889 1,446 108 Unlisted 231
Slide 12: Operating performance key highlights 2022 and Q1 2023
Operating performance key highlights 2022 and Q1 2023 b ) \ h K A XK Stable operating income of US$757mn for FY 2022 and net profit of US$1zomn (15% growth vs. 2021), supported by improving net interest margins (2.2% vs 1.9% in 2021) In Feb 2023, sold its 51.8% stake in Bank of Baghdad to Jordan Kuw
Slide 13: Operating performance highlights (continued)
United Real Estate | i poorer iad Company = Revenue of US$276mn in 2022 (vs. US$277mn in 2021); net profit of US$11mn* in 2022 (vs. loss of US$16mn in 2021) = Completed merger of United Towers Holding Company (UTHC) and Al Dhiyafa Holding Company (DHC) on 22 December 2022. Enhanced portfolio of inco
Slide 14: Financials & Liability Management
FINANCIALS & LIABILITY MANAGEMENT
Slide 15: KIPCO consolidated financial performance
KIPCO consolidated financial performance Revenue’ US$ mn Net Profit US$ mn 3,466 ; 82 57 2,353 ! ' i H i i ' 1,023 ' H H 629 " 7 - | _ 2021 2022 Qr22 Q1'23 2021 2022 Qr22 Q1'23 Total Assets? US$ bn Shareholder’s Equity? US$ mn 37.3 38.6 1,936 1,964 2022 Q1'23 2022 Q1'23 "Revenue for QI 2023 and QI 2
Slide 16: Proactive liability management: debut KD sukuk
Proactive liability management ’ KD103.1mn (US$336mn) debut Sukuk issuance in July 2023, under KIPCO’s US$2bn international sukuk programme listed on LSE + This is the first ever KD denominated Sukuk transaction by a Kuwaiti corporate * Provides KIPCO the access to a deep pool of Sharia compliant fi
Slide 17: Proactive liability management contd.
Proactive liability management ....contd. ’ b ) b US$525mn senior unsecured facility with an effective KD165mn (US$538mn) six-year senior unsecured KD tenor of three-year * Signed a US$525mn senior unsecured credit facility with 9 denominated bond issue Issued 6-year KD bond in December 2022 with ma
Slide 18: Extended debt maturity
Extended debt maturity As of 31 March 2023 Total Debt: US$2.74bn Cash & Cash Equivalents: US$ 428mn Debt type mEMTN wm KDBond j@ BankLoan Note: in July 2023, KIPCO issued a US$336mn (KD103.1mn) Sukuk Debt maturity m<1lyear m1to3years m>3 years
Slide 19: Pan MENA Player
Pan MENA Player Pan MENA Player
Slide 20: Executive management
Executive management 7] EB Sheikha Dana Nasser Sabah Al Ahmad Al Sabah | Group CEO Appointed KIPCO’s Group CEO in January 2022 and has been a Board Member since 2020, She is the Founder and Chair of the Board of Trustees of the American University of Kuwait (AUK) and the Chairperson of United Educat
Slide 21: Thank You
THANK YOU
Slide 22: Appendix
APPENDIX * GROUP COMPANIES’ PERFORMANCE * MACRO DATA
Slide 23: Burgan Bank
Burgan Bank Business highlights Key Franchises Kuwait based commercial bank with regional presence in five countries Name) Market Position 2"4 Jargest conventional bank in Kuwait in terms of assets (US$23.sbn") a BBB+ rating from S&P, Baai from Moody's, A+ from Capital Intelligence penne #2 conventi
Slide 24: Equate Group
Equate Group Business highlights * Kuwait based petrochemical company with operational presence in 11 countries through its subsidiaries * Product portfolio - Ethylene Glycol (EG, production capacity of 32mn MT), Polyethylene (PE, production capacity of umn MT) and Polyethylene Terephthalate (PET, p
Slide 25: Gulf Insurance Group
Gulf Insurance Group Business highlights * Kuwait-based insurance company with operations in life and non-life as well as Takaful insurance; market cap of US$i1,604mn" * Presence across the MENA region in 13 countries through a network of over 85 branches; market leader in 4 countries * GIG successf
Slide 26: SADAFCO
SADAFCO hb Business highlights Saudi Arabia-based leading food & beverage company, with operations in the Middle East and Europe Market leader in KSA’s Plain UHT milk, Tomato paste and Ice cream, marketing its core products under the flagship Saudia brand Diversified revenue: « By product: Milk 69%,
Slide 27: United Real Estate Company (URC)
United Real Estate Company (URC) Business highlights * Operations across the Middle East region through a mix of fully-owned properties, subsidiaries and investment arms * Presence across retail, hospitality, residential and office sectors * Engaged in developing Kuwaiti’s first-ever comprehensive m
Slide 28: United Gulf Holding Company (UGH)
United Gulf Holding Company (UGH) Business highlights Key Franchises * Bahrain-based financial services group listed on the Bahrain Stock Exchange * Activities include asset management, corporate finance advisory and brokerage services * Asset base of US$3.1bn" # FIMBANK __ Niche trade finance playe
Slide 29: Jordan Kuwait Bank (JKB)
Jordan Kuwait Bank (JKB) Business highlights Operational highlights Jordan based commercial bank with operations in Jordan, Iraq, Cyprus and Branches? Jordan Stake? In Dec 2022, JKB completed the acquisition of 77% stake in BHM capital, UAE | - 66 (o 51% In Feb 2023, JKB completed the acquisition of
Slide 30: NAPESCO - National Petroleum Services Company
NAPESCO - National Petroleum Services Company Business highlights + A Kuwait based leading provider of Upstream Oilfield Services including Cementing, Stimulation, Coiled Tubing, Nitrogen, and Downhole Service Tools along with pumping services to the Kuwait energy sector * Core activities involve se
Slide 31: JTC and ATC
JTC - Jassim Transport & Stevedoring Company Business highlights * Kuwait headquartered inland transportation company with operations in Kuwait, Qatar & Saudi Arabia * Leading service providers of Ports management, Contract Logistics, Equipment Leasing and Power Rental with asset size of US$207mn" +
Slide 32: KARO - The Kuwait Aromatics Company
KARO - The Kuwait Aromatics Company » b» Business highlights Operational highlights * Kuwait based holding company with aromatics production facilities through its subsidiaries KPPC and TKSC Benzene - 393,000 MT Production + Itis involved in manufacturing of Paraxylene, Benzene and Capacity Styrene
Slide 33: KSA Qatar KSA
• ▪ ▪ ▪ ▪ • ▪ ▪ ▪ • • • KSA Kuwait KSA Oman Qatar UAE Egypt
Slide 34: Kuwait fundamentals remain strong
Kuwait fundamentals remain strong... eran or = SF or NY Increased production coupled with surge in oil prices boosted the oil revenues AA/A1/A+ (Fitch/Moody's/S&P) One of the highest rated sovereigns ma = Supported by low fiscal break-even oil price B (usso2.9 per barrel") 6 largest Proven oil reser
Slide 35: GCC outlook cautious due to global developments
...as Well as for the GCC, though outlook is cautious due to global developments Nominal GDP (US$ Bn, 2023E) Real GDP Growth (% yoy, 2023E) Gross debt (% GDP, 2023E) KSA [ER 1,062 KSA I 3.1 KSA 24 UAE [i 499 UAE I ss UAE [si Qatar 220 Qatar I 24 Qatar I 46 Kuwait I 165 Kuwait Hi 0.9 Kuwait | 3 Oman