National Central Cooling Co. (p.s.c.) (tabreed) · DFM:TABREED
National Central Cooling Co. (p.s.c.) (tabreed) — National Central Cooling Company PJSC (Tabreed) — Merger or Acquisition (April 2020)
22 slides from National Central Cooling Co. (p.s.c.) (tabreed)'s merger presentation, Apr 6, 2020
Slide 1: Tabreed acquires world's largest district cooling scheme in Downtown Dubai
National Central Cooling Company PJSC (DFM:TABREED) Tabreed acquires world’s largest district cooling scheme in Downtown Dubai 6th April 2020 Strictly Private and Confidential
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 quarterly earnings call. By attending the meeting/call where t
Slide 3: Agenda
Agenda Page 1 Transaction Overview 4 2 Strategic Rationale 6 3 Transaction Terms 12 4 Combination and Integration 15 5 Conclusion 17 Appendix: Emaar – A Blue Chip partner 20 NATIONAL CENTRAL COOLING COMPANY PJSC 3
Slide 4: 1. Transaction Overview
fl tabreed Sustainable Cooling 1. Transaction Overview
Slide 5: Transaction Overview
Transaction Overview A historic achievement for Tabreed and a transformational transaction • Tabreed acquires 80% of Emaar’s Dubai Downtown District Cooling business and signed a long-term concession • Transaction perimeter includes 4 plants with an ultimate concession capacity of 235k RT and 150k R
Slide 6: 2. Strategic Rationale
fl tabreed Sustainable Cooling 2. Strategic Rationale
Slide 7: Strategic Rationale
Strategic Rationale Underpinned by long-term contracts with Emaar Group, an investment grade counterparty Unique opportunity to gain scale in the largest district cooling (DC) market in the World • The acquisition significantly increases Tabreed’s market share in Dubai, the largest District Cooling
Slide 8: Unique opportunity to gain scale in the largest market in the World
Unique opportunity to gain scale in the largest market in the World The acquisition significantly increases Tabreed’s market share in Dubai, the largest DC market in the World Downtown Dubai: the most desirable address in the Strengthening Tabreed’s market position in Dubai city and a socio-economic
Slide 9: Reducing customer concentration and adding high quality off takers to the portfolio
Reducing customer concentration and adding high quality off takers to the portfolio Diversifies revenue base with high creditworthy customers Diversifies top customer Current customers Contractual Status of Concession concentration… • Emaar Group accounts for vast majority of • 84% of capacity in th
Slide 10: Transaction in line with Tabreed's growth strategy
Transaction in line with Tabreed’s growth strategy Downtown acquisition meets a number of our growth criteria Growth avenues Emaar Downtown • Long-term concession agreement • Tabreed has sole right to provide cooling services in a certain district • Exclusivity in the masterplan • Any new buildings
Slide 11: Downtown DCP LLC
Downtown DCP LLC Downtown DCP holds a long-term concession for cooling Downtown Dubai Dubai Downtown Emaar District Cooling (EDC) Capacities (k RT) • Founded in 2004 and a 100% owned subsidiary of the Emaar Group, EDC is a leading district cooling service 8% provider in Dubai, serving Emaar developm
Slide 12: 3. Transaction Terms
fl tabreed Sustainable Cooling 3. Transaction Terms
Slide 13: Transaction Structure
Transaction Structure • The special purpose vehicle (SPV) will have full ownership of the DC plants and networks • Long-term concession agreement with Emaar • Signed CCSAs (Customer Cooling Service Agreements) for all current and under construction Emaar developments with fixed take-or-pay dates • C
Slide 14: Financing and ratings consideration
Financing and ratings consideration • A 5 year, US$ 692m Senior Unsecured Term Loan with a bullet repayment, to fund the acquisition and underlying transaction and financing costs • Interest rate of the facility will be LIBOR + margin • Plan to hedge to maturity up to 100% of the floating interest r
Slide 15: 4. Combination and Integration
4. Combination and Integration
Slide 16: Combination and Integration
Combination and Integration Transaction contributes to the acceleration of growth strategy Downtown Downtown DCP DCP Connected Capacity (k RT) 1,183 150 1,333 2019 Revenue (AED m) 1,520 327 1,847 2019 EBITDA (AED m) 763 187 950 • Detailed integration plan in place • Smooth integration of the assets
Slide 17: 5. Conclusion
fl tabreed Sustainable Cooling 5. Conclusion
Slide 18: A Compelling Proposition
A Compelling Proposition A landmark transaction for Tabreed A strategically Strong cash compelling flows lead to transaction rapid for Tabreed deleveraging shareholders Funded Acquisition of Takes Tabreed to #2 in through low cost 5 year Downtown Dubai World’s largest DC bullet facility DC business
Slide 19: Contact Us
Contact Us Saket Somani Churchgate Partners Email: Tabreed@churchgatepartners.com Richard Rose Salik Malik VP, Finance Head, Financial Planning & Analysis Tel: +971 2 2020400 Tel: +971 2 2020397 Email: IR@tabreed.ae Email: SMalik@tabreed.ae NATIONAL CENTRAL COOLING COMPANY PJSC
Slide 20: Appendix: Emaar – A Blue Chip Partner
Appendix: Emaar – A Blue Chip Partner
Slide 21: Emaar Properties
Emaar Properties A high-quality, investment grade real estate developer One of the largest real estate companies Largest private owner of land bank in UAE AED 24.6 billion AED 11.6 billion AED 6.2 billion 2019 Revenues 2019 Gross Profit 2019 Net Profit 30% Revenue; 47% EBITDA AED 45.8 billion Robust
Slide 22: Emaar Properties
Emaar Properties A leading and diversified real-estate player in UAE Developer of iconic architecture in Dubai Resilient business with strong growth potential (AED m) 25,694 18,752 7,202 15,540 3,081 13,661 6,311 9,893 5,974 5,788 3,584 5,367 2,667 15,411 2,620 1,870 6,899 8,857 5,253 2,656 2014 201
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