National Central Cooling Co. (P.S.C.) (Tabreed) · DFM:TABREED
National Central Cooling Co. (P.S.C.) (Tabreed) — National Central Cooling Company PJSC (Tabreed) — FY2009 Earnings Presentation
29 slides from National Central Cooling Co. (P.S.C.) (Tabreed)'s earnings presentation, Mar 10, 2010
Slide 1: Tabreed 2009 Results Presentation
Tabreed 2009 Results Presentation 10 March 2010
Slide 2: Disclaimer
Disclaimer • These materials have been prepared by and are the sole responsibility of the National Central Cooling Company PJSC, ‘Tabreed’ (the “Company”). These materials have been prepared solely for your information and for use at the presentation to be made on 10 March 2010. By attending the mee
Slide 3: Agenda
Agenda • Summary • Operational Review – Sujit Parhar • Financial Review – Steve Ridlington • Recapitalization Plan – Sujit Parhar • Q&A 3
Slide 4: Summary
Summary • Tabreed’s underlying operations demonstrated stable overall results in a very difficult environment – Total revenues of AED 742m in 2009 vs. AED 735m in 2008 – Revenue from core chilled water business rose 29% and gross profit 31% over 2008 – Profit from operations of other business segmen
Slide 5: Operational Review
Operational Review Sujit Parhar CEO 5
Slide 6: Large Potential Future Business Opportunity
Large Potential Future Business Opportunity District Cooling industry is strategically important for the Plan Abu Dhabi 2030 Residential Units in Abu Dhabi (m) • Significant growth in industrial and commercial demand driven by growth in 750 686 residential units 500 411 • With District Cooling meeti
Slide 7: New Management Team in Place
New Management Team in Place • New Board commenced review of Business Process and Management at Tabreed – Changes in senior management team commenced in 2009 • Experienced and highly qualified management team now in place – New CEO and CFO – Newly created positions of Legal Director and Chief Risk &
Slide 8: Business Model Changes
Business Model Changes • A comprehensive review has identified a number of issues that need to be addressed: – Capacity overbuild – Building of large networks, resulting in significant cost – Many contracts not having firm off-take dates, as a result of which Tabreed is not protected from customer c
Slide 9: 2009 Operational Achievements
2009 Operational Achievements Chilled Water • Three new plants came online during the year and several new customers were connected • Total installed cooling capacity increased to 395,100 tons across 36 plants • Revenue and gross profit up 29% and 31% respectively • Electricity and water efficiency
Slide 10: Operational Year
UAE Operational Plants • In total 53,000 RT of gross capacity came online in 2009, increasing year end capacity to 395,100 RT (gross) across 36 plants from 342,100 RT (gross) in 2008 – Total billed capacity of chilled water in 2009 was 339,572, an increase of 24% over 2008 – Average reliability of 9
Slide 11: Significant Capacity Roll-out
Significant Capacity Roll-out Plant Completion Installed Capacity Al Wadi Scheme Q1 10 2,000 SZR Dubai 2 Q1 10 7,500 Al Barchaa Q1 10 7,500 Al Rigga Q1 10 10,000 T8 ZMC 2010 10,000 Fujairah Naval Base 2010 4,400 Jebel Ali Industrial 2010 4,400 Rashidiya Plant 2010 7,500 Jebel Ali - Jumeirah 2010 5,6
Slide 12: Operational Efficiency Highlights
Operational Efficiency Highlights • Power and water account for 80% of operating costs of Tabreed • Achieved continuous improvements in operating efficiency – Reduced electricity usage from Kw/Ton 1.07 in 2008 to Kw/Ton 0.98 in 2009 – Reduced water usage from Gal/Ton 1.84 in 2008 to Gal/Ton 1.65 in
Slide 13: Financial Review
Financial Review Steve Ridlington CFO 13
Slide 14: 2009 Financial Highlights
2009 Financial Highlights Consolidated results for 2009 Key Figures – Un-audited Consolidated Financials • Group revenue of AED 742m 12-months – Strong contribution from Chilled Water ending 31 December (+29%) offset by reduction in services and manufacturing All figures in AED m 2009 2008 Revenues
Slide 15: Impairment Charge
Impairment Charge • The impairment was taken following a comprehensive review of the business and long term asset values and reflects the unprecedented real estate slowdown resulting in: – Cancellation of some projects and scale back in others – Bad debts and other one-off items • The impairment cha
Slide 16: Summary Key Financials
Summary Key Financials Revenues EBITDA (AED m) (AED m) (1) % Margin 6.1% 800 : 16.6 % 742 280 5-09: 1 60% 05-09 735 CAGR 0 242 CAGR 230 565 210 45% 600 180 164 470 127 401 400 140 32% 35% 30% 32% 33% 31% 200 70 15% 0 0 0% 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 EBITDA Margin Net Income (Pr
Slide 17: Chilled Water (48% of Revenue)
Chilled Water (48% of Revenue) Key Metrics • Sales increased by 29% (AED m) 2009 2008 % Change – 3 new plants came online – Billed capacity increased by 65,371 RT in 2009 Sales 357 278 29% • Operating costs increased more slowly than revenues (+26% over 2008) due to operational efficiencies Cost (17
Slide 18: Contracting (24% of Revenue)
Contracting (24% of Revenue) Key Metrics (AED m) 2009 2008 % Change Sales 174 126 38% • Sales up 38% mainly due to completion of work on Shams & Sowwah Islands Cost (143) (98) 46% • Operating costs rose by 46% due to project delays and Gross Profit 31 28 10% cost overrun GP Margin 18% 22% • Gross Pr
Slide 19: Manufacturing (19% of Revenue)
Manufacturing (19% of Revenue) Key Metrics (AED m) 2009 2008 % Change • Sales decreased by 30% over 2008 driven by economic Sales 142 204 (30%) and resultant fall in order books Cost (97) (138) (30%) • Operating costs declined 30%, in line with revenues, due Gross Profit 45 65 (31%) to manufacturing
Slide 20: Services (9% of Revenue)
Services (9% of Revenue) Key Metrics (AED m) 2009 2008 % Change Sales 69 127 (46%) • Sales decreased by 46% in 2009 reflecting slowdown in the real estate sector Cost (32) (38) (16%) • Operating cost decreased by 16% over 2008 Gross Profit 37 89 (59%) • Gross margins fell to 53% from 70% in 2008 dri
Slide 21: Project Funding Requirements
Project Funding Requirements • Substantially all capital expenditure for committed and contracted plants expected to be completed by year-end 2011 – Bringing on line significant installed capacity – Majority of committed capital expenditure attributable to Dubai Metro and Aldar projects • Baseline f
Slide 22: Debt Facilities and Maturity Profile
Debt Facilities and Maturity Profile Capitalization Table(1)(2) AED m - As of 31 December 2009 Amount Outstanding 2009 EBITDA (AED m) (x) Syndicated Facilities 1,143 Bilateral Facilities 1,647 Bank Overdraft 52 Total Bank Debt 2,842 Sukuk USD 200m 735 Total Debt 3,576 16.0x Cash 347 Total Net Debt 3
Slide 23: Recapitalization Plan
Recapitalization Plan Sujit Parhar CEO 23
Slide 24: Recapitalization Process
Recapitalization Process • Board approved undertaking a recapitalization of the company to achieve a stable long-term capital structure – Significant funding requirement to complete projects and fund committed capital expenditure – Approximately AED 2,500m through 2011 – Entering into discussions wi
Slide 25: Short-Term Funding Facility Terms
Short-Term Funding Facility Terms • Treasury Holding Company (a wholly-owned subsidiary of Mubadala Development Company) has provided a short-term loan facility to allow Tabreed to operate on a business as usual basis while it completes its recapitalization process Key Terms Borrower Tabreed Amount
Slide 26: Summary of Shareholder Resolutions
Summary of Shareholder Resolutions • Board of Tabreed is seeking the flexibility to enter into negotiations and implement the key steps necessary to successfully complete the recapitalisation of Tabreed – Objective is to achieve a long-term stable capital structure to support the growth and developm
Slide 27: Expected Timeline
Expected Timeline Date Description - Full Year results announcement 8 March - Proactive engagement with creditors pursued 31 March Finalization of audited 2009 accounts 1 April Publication of EGM / EGA notices Late April to Early June EGM / EGA meetings Post shareholder approval Reach agreement with
Slide 28: Q&A
IE et fl tubieed Q&A 28
Slide 29: Contact Details
Contact Details For further information please contact Kalpesh Shah Investor Relations Associate kshah@tabreed.com +971 2 645 5007 29
National Central Cooling Company PJSC (Tabreed) — FY2009 Earnings Presentation on 6ix