Kuwait Projects Company Holding (K.S.C.P.) · KSE:KPROJ
Kuwait Projects Company Holding (K.S.C.P.) — Kuwait Projects Company (KIPCO) — Global Emerging Markets Corporate Conference 2011
30 slides from Kuwait Projects Company Holding (K.S.C.P.)'s conference presentation, March 2011
Slide 1: Global Emerging Markets Corporate Conference
Global Emerging Markets Corporate Conference 1 March 2 - 3, 2011 - Miami
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
Index Introduction MENA Region Business Highlights Financial Highlights Annexure 3
Slide 4: Kuwait Projects Company (KIPCO)
Kuwait Projects Company (KIPCO) A Multi-sector operating holding company with a diversified portfolio spanning the GCC and wider Middle East and North Africa (“MENA”) region OUR BUSINESS AUM of US$25 billion1 Present in 16 MENA countries; 68% Kuwait / 32% outside Kuwait2 46% commercial banking
Slide 5: KIPCO: Key Investment Highlights
KIPCO: Key Investment Highlights Excellent Track Strong track-record of execution Record 19 years of continuous profitability Al Futtooh Investments (AFH) owned by members of Kuwaiti ruling family have a Ruling g Family y controlling stake Shareholders Long term supportive shareholders Marke
Slide 6: Index
Index Introduction MENA Region Business Highlights Financial Highlights Annexure 6
Slide 7: MENA Region: Poised for Strong Economic Growth
MENA Region: Poised for Strong Economic Growth Syria 4th Largest Population in the World (2010E) Tunisia Iraq Morocco Population (million) Lebanon #1 #2 #3 #4 #5 #7 #11 #12 #24 Jordan 1,341 Kuwait 1,216 Algeria Bahrain Libya Egypt Qatar UAE 499 Saudi 410 310 Arabia 193 140 127 Oman 62 GCC Non GCC Ye
Slide 8: GCC Region: Well Positioned to Deliver Growth
GCC Region: Well Positioned to Deliver Growth US$ billion Current Account Surplus 260 US$ billion 210 …accumulated current account surplus of 168 190 over one trillion US Dollars in the last 5 89 159 196 101 134 140 75 years years… 70 46 66 34 51 50 64 29 35 18 2004 2005 2006 2007 2008 2009 2010 Kuw
Slide 9: Kuwait: Oil Wealth to Fuel Non Oil Growth
Kuwait: Oil Wealth to Fuel Non Oil Growth Real GDP and GDP Per Capita forecast to Improved Growth Forecasts (2010-14 CAGR) to grow by 5% and 4.4% Over the next Real GDP Growth GDP/ Capita (PPP) 5 years 4.7% 5.0% 3.4% 4.4% ¾ Revised upwards from last year ¾ US$21 billion budget surplus forecast in
Slide 10: Kuwait Development Plan
Kuwait Development Plan Purpose: ¾ Upgrade infrastructure ¾ Diversify non oil revenue ¾ Create employment ¾ Develop private sector Of the total US$108 billion 4 year plan, phase I for FY 2010/11 comprises of US$27 billion, as follows: By Sectors By Industries By Sources of Funds 6% Health & Educ
Slide 11: Index
Index Introduction MENA Region Business Highlights Financial Highlights Annexure 11
Slide 12: Supportive Shareholder With Ruling Family Links
Supportive Shareholder With Ruling Family Links Shareholding Profile: December 2010 Kuwaiti Ruling Family Support Retail Treasury KIPCO’s principal shareholder is Al Futtooh Holding Shares Company K.S.C. (Closed) (“AFH”), a Kuwaiti company Investors 7.2% 7.0% Al Futtooh owned by members of the Kuw
Slide 13: Strategic Roadmap
Strategic Roadmap Building Businesses Regional Thought Outlook leadership Investing Strong in engines managerial Being first Diversified MENA of growth revenue expertise in the streams region Team Target Approach ROE: 20% Balanced Portfolio 13
Slide 14: Controlling or Majority Stakes in Principal Companies
Controlling or Majority Stakes in Principal Companies Business Main Group’s Consolidated Board Market Cap Credit Segments Entities Effective Stakes1 Representation (US$mn)2 Ratings Commercial S&P: BBB+/A2 59.1% 6 of 9 2,468 Banking Moody’s: A2/ P1 Moody’s : Ba1 Asset 95.8% 6 of 6 1,002 CI*: BBB Mana
Slide 15: Large, Diversified and Quality Portfolio
Large, Diversified and Quality Portfolio Revenue by Sector & Geography (2010) Major Activities Geogra- Country AM/ Total Revenue Break-up1: phy CB INS ME RE IND OT IB 10% 1% 0% Bahrain ● ● ● ● 11% 19% GCC KSA ● ● ● 46% 13% Kuwait ● ● ● ● ● ● ● 31% 68% UAE ● ● ● CB AM/IB Ins Kuwait Rest of GCC Algeri
Slide 16: 2010: Focus on Execution – A Report Card
2010: Focus on Execution – A Report Card 2010 is KIPCO’s 19th year of continuous profitability All listed core companies profitable, OSN is EBITDA positive since August 2010 Profitability Increased market share: ¾ Insurance: Enhanced presence in KSA, Jordan, Egypt and Bahrain ¾ Media: Closed p
Slide 17: 2011: Focus on Execution – Key Themes
2011: Focus on Execution – Key Themes To be back at pre pre-crisis crisis level of profitability Expand regional franchise through organic and inorganic means Commercial Banking Monetize Kuwait development plan Enhanced communication with external stakeholders through an active I Investor t
Slide 18: Burgan Bank Group
Burgan Bank Group Burgan Bank, Bank the commercial banking arm of KIPCO group, group today has become a regional player with market leadership in Jordan, Iraq, Tunisia and Algeria Business Highlights Key Subsidiaries Kuwait-based 4th largest bank listed on the Kuwaiti Stock Market cap Coun- % Name
Slide 19: United Gulf Bank
United Gulf Bank UGB the Asset Management and Investment Banking arm of KIPCO Group, UGB, Group is focused on growing the financial services network across the MENA region Business Highlights Key Subsidiaries and Associates Bahrain-based financial services group listed on the Bahrain Market Market
Slide 20: Gulf Insurance Company
Gulf Insurance Company GIC the GIC, th iinsurance arm off KIPCO KIPCO, iis amongstt the th ttop 6 insurance i players l in i the th MENA Region R i Business Highlights Key Subsidiaries/Associates Kuwait-based insurance company listed on the KSE Market Market Coun % Name Cap Presence across the M
Slide 21: Orbit Showtime Network
Orbit Showtime Network The #1 pay-TV platform by revenue in the MENA region Business Highlights Geographical Presence (24 countries) Largest g pay p y TV operator p in MENA by y revenues T i i Tunisia Cyprus Syria Morocco Lebanon Iran Palestine Iraq Kuwait Jordan Serving a population base of 410
Slide 22: Index
Index Introduction MENA Region Business Highlights Financial Highlights Annexure 22
Slide 23: KIPCO (Consolidated): Key Financials
KIPCO (Consolidated): Key Financials Revenues (US$ million) Net Profit (US$ million) 450 429 1,485 1,569 1,423 1,455 300 319 269 214 239 131 160 86 2007¹ 00 2008 008 2009 009 2010 0 0 2007¹ 2007 2008² 2008 2009² 2009 2010² 2010 Total Assets (US$ billion) Shareholders’ Equity (US$ million) 20.2 18.6
Slide 24: KIPCO (Parent): Debt Metrics
KIPCO (Parent): Debt Metrics (US$ million) illi ) Financial KIPCO (Parent) Dec 31, 2008 Dec 31, 2009 Dec 31, 2010 Targets Cash & Cash Equivalents 374 1,117 1,014 Gross Debt 1,008 1,732 1,880 Shareholders’ Equity 1,938 1,940 1,996 Gross Parent Debt / Shareholders’ Equity <2.5x 0.52x 0.89x 0.94x Estim
Slide 25: Debt Profile & Liability Management
Debt Profile & Liability Management Debt Type: Dec 2010 Placements Total Debt: US$1,880 million As at Dec 31, 2010, KIPCO had cash & bank balance Term of US$1,014 million Loan Placements with investment g grade rated domestic 31 3% 31.3% institutions are of short duration, typically rolled over
Slide 26: Key Investment Highlights
Key Investment Highlights Financial Diversified Discipline Portfolio Leading Strong Transparency p y q Liquidityy in the region levels Shareholders Investment from the Grade Credit Ruling Ratings Family Market Excellent Leadership Track Record 26
Slide 27: Index
Index Introduction MENA Region Business Highlights Financial Highlights Annexure 27
Slide 28: KIPCO: Board of Directors
KIPCO: Board of Directors Chairman of KIPCO, Masharie Al Khair Establishment, and Saudia Sheikh Hamad Sabah Al Dairy & Foodstuff Company (SADAFCO) Chairman Ahmad Al Sabah Deputy Chairman of United Gulf Bank and Board Member of Burgan Bank Joined KIPCO Board in 1990, Vice Chairman KIPCO Group
Slide 29: KIPCO: Executive Management
KIPCO: Executive Management Joined KIPCO Board in 1990 Joined KIPCO in 1990; Board and committee Recipient of Arab Bankers Association of North member b off American University off Kuwait, MIT, America Achievement Award (2005) Harvard and the Forsyth Institute Faisal Hamad Al Ayyar Samer Subhi
Slide 30: Key Milestones
Key Milestones 1988 Acquisition of United Gulf Bank (UGB) 1994 Acquisition of stake in United Real Estate Company (UREC) 1995 Formation of Gulf DTH (Showtime) and acquisition of stake in Burgan Bank Acquisition of stake in Gulf Insurance Company (GIC) 1996 Establishment of United Industries Company
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