Kuwait Projects Company Holding (K.S.C.P.) · KSE:KPROJ
Kuwait Projects Company Holding (K.S.C.P.) — Kuwait Projects Company Holding (KIPCO) — Debt Investor Presentation (November 2016)
39 slides from Kuwait Projects Company Holding (K.S.C.P.)'s debt investor presentation, November 2016
Slide 1: KIPCO Still Continues to Grow: Debt Presentation November 2016
..KIPCO Still Continues to Grow.. Debt Presentation | November 2016 D 1
Slide 2: Disclaimer
Disclaimer This presentation is not an offer or invitation to subscribe to or purchase any securities. No warranty is given as to the accuracy or completeness of the information in this presentation. You must make your own independent investigation and appraisal of the business and financial conditi
Slide 3: Index: Key Investment Highlights
Index Key Investment Highlights 3
Slide 4: Our Business, strategy and team
Our Business, strategy and team Our Business Holding company with total assets of USD33.0bn 1 Operating entities across the GCC and wider MENA region; presence in 24 countries Multi-sector operator- commercial banking, asset management, investment banking and insurance, media, real estate and indust
Slide 5: Key investment highlights
Key investment highlights Sustained profitability for the last 24 years Proven Track Record 14 years of continuous dividends Al Futtooh Holding Co. (AFH) owned by members of Kuwaiti ruling family have a controlling Ruling Family stake of ~ 45% Shareholders Shareholders since 1988; have supported KIP
Slide 6: Business Overview
Index Business Overview 6
Slide 7: Building Businesses: Strategic roadmap
Strategic roadmap Regional MENA outlook Investing in Target engines of ROE: growth 15%+ Diversified revenue streams Balanced Building Portfolio Businesses Strong managerial Team expertise Thought Approach leadership Being first in the region Invest in companies with sustainable and predictable cashf
Slide 8: Our presence by geographies & sectors
Our presence by geographies & sectors Major Sectors Geography Commercial Revenue Media Insurance Real Estate AMIB Industrial Others banking (2015) 1 Kuwait ● ● ● ● ● ● ● 46% KSA ● ● ● 8% UAE ● ● ● ● 7% Bahrain ● ● ● ● 4% Turkey ● 11% Jordan ● ● ● ● 8% Egypt ● ● ● ● 7% Algeria ● ● ● 3% Iraq ● ● ● 2%
Slide 9: Core holdings
Core holdings All core holdings are market leaders in their space #2 conventional bank #1 Digital satellite premium #1 Insurer in Kuwait3, Bahrain4 , in Kuwait1 Pay TV operator2 in MENA Jordan4 & Egypt5 region #1 Asset Manager in Kuwait with #2 listed real estate Leading industrial company In Kuwait
Slide 10: Controlling or majority stakes
Controlling or majority stakes Main Entities KIPCO Effective 64.8% 60.5% 96.3% 83.0% 3 45.6% 72.2% Stakes1 Board Representation 6 of 9 2 of 75 4 of 7 5 of 5 4 of 104 4 of 7 Market Cap (USDmn)2 2,089 Unlisted 822 87 364 335 S&P: S&P: Credit BBB+/A2 A- (GIRI); Moody’s: Unrated CI: BBB Unrated CI: BBB
Slide 11: Supportive shareholder with ruling family links
Supportive shareholder with ruling family links Shareholding Profile1 Kuwaiti Ruling Family Support Treasury Shares Primary KIPCO’s principal shareholder is Al Futtooh Holding Company 2% Shareholder K.S.C. (Closed) (“AFH”), a Kuwaiti company owned by HNIs & Retail (AFH) members of the Kuwaiti ruling
Slide 12: Key developments & performance update
Index Key developments & performance update 12
Slide 13: Burgan Bank (BB)
Burgan Bank (BB) Business highlights Key Franchises Kuwait based commercial bank with a Effective Assets1 Revenue1,3 Name Market Position Stake1 USDmn USDmn regional presence in seven countries 2nd largest conventional bank in Kuwait in #2 conventional bank 100% 17,812 322 terms of assets (Total
Slide 14: Burgan Bank: Regional operations
Burgan Bank: Regional operations* Loan Growth Deposit Growth Net Profit^ USDbn USDbn USDmn 9% 6% -16% -6% 62 4 .5 4 .3 4 .9 4 .6 3 .4 3 .1 32 26 23 17 14 2 .2 2 .2 12 6 (6 ) 1 1 .0 1 .0 1 .3 1 .2 1 .1 0 .9 0 .3 0 .3 0 .2 0 .2 0 .0 0 .0 AG B BoB TIB BBT Total AG B BO B TIB BBT Total AG B BO B TIB BBT
Slide 15: Burgan Bank: NPA & provisioning trend
Burgan Bank: NPA^ & provisioning trend NPA Trend NPA (USDmn) At end of Sep 2016, combined NPA Ratio (Percentage) coverage of non performing 1,034 787 1,193 881 623 642 699 802 246 assets (NPA) was 181% 199 166 185 164 116 117 102 NPA Ratio was 4.1% as on 30 1 1 .0 %1 1 .8 % 86 9 .5 % 1 0 .5 % 6
Slide 16: Gulf Insurance Group (GIG)
Gulf Insurance Group (GIG) Business highlights Key Franchises Market Effective Asset1 Revenue1,2 Kuwait-based insurance company listed Name Position Stake1 USDmn USDmn on the KSE Gulf Insurance & #1 by GPW in 100% 535 143 Presence across the MENA region Reinsurance C ompany Kuwait Bahrain Kuwait #1
Slide 17: OSN: Overview
OSN: Overview MENA Pay TV Potential MENA Region1 Latin America UK India US Population (Mn) 338 616 66 1,310 324 Pay TV (Mn; Est.) 5.6 32 15 148 99 TV Households (Mn) 70 56 26 183 118 TV Households / Households (%) 96% NA 95% 74% 85% Pay TV/ TV Households (%) ~8% 57% 57% 81% 84% Low Pay TV penetratio
Slide 18: OSN: Overview…cont'd
OSN: Overview…cont’d Overview Pan Arab reach Syria Largest premium Pay TV operator in MENA Tunisia Lebanon Iraq Iran region (HQ in Dubai), created by the merger of Morocco Palestine Jordan Showtime and Orbit in 2009 Kuwait A lgeria Lybia Bahrain Western Egypt Qatar Sahara Licensed to operate in 26 c
Slide 19: United Gulf Bank (UGB)
United Gulf Bank (UGB) Business highlights Key Franchises Bahrain-based financial services group Effective Asset1 Revenue1,3 Name Market Position listed on the Bahrain Stock Exchange stake1 USDmn USDmn Activities include asset management, #1 asset management corporate finance advisory and compan
Slide 20: United Real Estate Company (URC)
United Real Estate Company (URC) Business highlights Key Franchises Operations across the Middle East region through Country Name of properties a mix of fully-owned properties, subsidiaries and KIPCO Tower, Al Shaheed Tower, Marina World, Kuwait investment arms Marina Hotel, Saleh Shehab Stable rent
Slide 21: KIPCO consolidated: Financial performance
KIPCO consolidated: Financial performance Revenue Net Income Consolidated Assets USDmn USDmn EPS (Cents) USDbn 9.2 10.9 11.2 7.3 8.2 175 33.0 2,047 1,970 152 31.6 1,694 ^ 132 133 1,617 1,498 123 30.7 28.5 2013 2014 2015 9M'15 9M'16 2013 2014 2015 9M'15 9M'16 2013 2014 2015* 9M'16 21 *2015 consolidat
Slide 22: Debt Metrics
Index Debt Metrics 22
Slide 23: KIPCO (Parent): Debt Metrics
KIPCO (Parent): Debt Metrics (USDmn) Financial 31 December 31 December 31 December 30 September KIPCO (Parent) Targets 2013 2014 2015 2016 Cash & Cash Equivalents 472 881 1,009 1,254 Gross Debt 1,317 1,835 1,890 2,079 Net Debt 845 954 881 825 Shareholders’ Equity 1,847 1,896 1,906 1,941 Net Parent D
Slide 24: KIPCO parent: Significant cash coverage till 2019
KIPCO parent: Significant cash coverage till 2019 Current cash sufficient to meet all debt Debt obligations till Coverage 2.5x - 9.1 1.3x Dec’2019 USDmn 2016 2017 2018 2019 Cash balance Debt due during the year In October 2016, KIPCO has repaid USD500mn EMTN loan due during that month Cash Coverage
Slide 25: KIPCO parent debt profile: As at 30 September 2016
KIPCO parent debt profile: As at 30 September 2016 Debt Type* Debt Maturity* Total Debt: USD2.1bn Total Debt: USD2.1bn Average debt International maturity is Bonds 3.1 years 4% 96% Term 24% 23% 4% 48% 24% Loan <1 Year 1-2 Years 2-4 Years >4 Years * As 30 of September 2016 Liquidity KIPCO has cash &
Slide 26: Why KIPCO
Index Why KIPCO 26
Slide 27: Key Credit Highlights
Key Credit Highlights Financial Discipline Leading in Diversified Transparency Portfolio Pan MENA Player Shareholders from the Ruling Family Pan MENA Strong Liquidity Player Market Investment Grade Leadership Credit Ratings Excellent Track Record 27
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Slide 29: Annexure
Index Annexure 29
Slide 30: United Industries Company (UIC)
United Industries Company (UIC) Business highlights Key Franchises Established in 1979, UIC operates as a holding Effective Asset Revenue Name Market Position company for the group’s industrial investments Stake1 USDmn USDmn UIC’s mission is to manage a diversified portfolio Leading private of inves
Slide 31: URC: Balance Sheet (Break-up) as of 30 September 2016
URC: Balance Sheet (Break-up) as of 30 September 2016 Total Asset Investment Properties Total: USD1,895m n Total: USD374m n 2% 1% 2% Investm ent properties 9% 20% Land for development 13% Marina World - Kuwait 14% Projects under Salalah Mall - Oman construction* Fixed Assets (PPE) 11% 48% Marina Pla
Slide 32: Jordan Kuwait Bank (JKB)
Jordan Kuwait Bank (JKB) Business highlights Geographical Structure Jordan based commercial bank with operations in Branches (1) Jordan Stake (1) Jordan, Palestine and Cyprus 58 51% Listed on Amman Stock Exchange with a market capitalization of USD530mn as on 28 November Palestine 2016 2 Mkt. Share
Slide 33: KIPCO: Huge value potential for investors
KIPCO: Huge value potential for investors Low repayment risk Has sufficient cash to service all debt obligations till Dec 2019 (2.5x coverage for 2016) Proactive liability Minimal credit management risk and strong Strong secondary market performance Average debt maturity of 3.1years investor of bond
Slide 34: MENA Region: Poised for strong economic growth
MENA Region: Poised for strong economic growth Real GDP Growth (2016-21E) Tunisia Lebanon Syria Iraq Morocco Jordan 7.8% India Kuwait Algeria 6.0% China Bahrain Libya Egypt Qatar 3.5% MENA Saudi UAE 1.9% US Arabia Oman 1.8% EU 1.7% UK GCC Non GCC 1.6% Brazil Yemen 1.4% Russia 0.5% Japan MENA region
Slide 35: GCC Region: Well positioned to deliver growth
GCC Region: Well positioned to deliver growth One of the highest per capita income, large sovereign ….All contribute to wealth funds, 30% of world’s proven oil reserves, fundamentals in the GCC…. along with robust and growing non-oil sector activity … Current Account Surplus Government debt as a % o
Slide 36: Kuwait: Protected against oil price decline
Kuwait: Protected against oil price decline Kuwaiti government’s Reserve Fund for Future Generations (RFFG) expected to bet more than USD500bn 25% of total revenue contributed to RFFG during periods of high oil prices and 10% during low oil prices Prudent Oil Oil output to remain above 2.8mn barrels
Slide 37: Kuwait: Stable macro-economic environment
Kuwait: Stable macro-economic environment Average budget surplus of 25% 1 of GDP from 2001 to 2014 Healthy Average budget surplus expected to be 6.5% 1 from 2016 to 2019 Annual After excluding investment income from RFFG, Kuwait had a budget deficit of KD6bn (17% of GDP) in Budget 2015/16 and is exp
Slide 38: Kuwait development plan overview
Kuwait development plan overview In February 2010, the Kuwaiti authorities announced a series of five-year plans stretching to 2035 aimed at diversifying the economy and expanding the role of the Purpose private sector while tackling much needed investments in health, education and infrastructure an
Slide 39: Kuwait Development Plan: Projects in action
Kuwait Development Plan: Projects in action Key Projects under the plan Al-Khairan Power & Desalination Olefins III project Jurassic Non Associated Oil & Plant (IWPP) Petrochemical plant to be integrated with New Gas Reserves Expansion: Phase 2 Refinery Project (Al Zour Refinery) Production of 120,0
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