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 (September 2016)
39 slides from Kuwait Projects Company Holding (K.S.C.P.)'s debt investor presentation, September 2016
Slide 1: KIPCO Still Continues to Grow: Debt Presentation September 2016
..KIPCO Still Continues to Grow.. Debt Presentation | September 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 USD33.2bn 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: Index: 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 #3 listed real estate Leading industrial company In Kuwait
Slide 10: Controlling or majority stakes
Controlling or majority stakes Main Entities KIPCO Effective 64.6% 60.5% 96.3% 83.0% 3 45.6% 72.0% 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 2,177 Unlisted 840 101 404 363 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 Profile Kuwaiti Ruling Family Support Treasury KIPCO’s principal shareholder is Al Futtooh Holding Company Shares K.S.C. (Closed) (“AFH”), a Kuwaiti company owned by 2% Primary members of the Kuwaiti ruling family HNIs & Retail Shareholder
Slide 12: Index: Key developments & performance update
Index Key developments & performance update 12
Slide 13: Burgan Bank (BB)
Burgan Bank (BB) Business highlights Key Subsidiaries Kuwait based commercial bank with a Market Cap % Name Market Position Country (USDmn) 1 Stake2 regional presence in seven countries 2nd largest conventional bank in Kuwait in Leading Algerian Bank Unlisted Algeria 60% terms of assets (Total a
Slide 14: Burgan Bank: Regional operations
Burgan Bank: Regional operations* Loan Growth Deposit Growth Net Profit^ USDbn USDbn USDmn -4% 14% 8% -15% 11% 1% 47 4 .6 4 .3 3 .5 4 .9 5 .0 21 3 .1 16 11 12 9 8 2 .2 2 .5 3 (9 ) 1 1 .0 0 .9 1 .3 1 .2 1 .1 0 .9 0 .3 0 .3 AG B BoB TIB BBT Total 0 .2 0 .2 0 .0 0 .0 AG B BO B TIB BBT Total AG B BO B T
Slide 15: Burgan Bank: NPA & provisioning trend
Burgan Bank: NPA & provisioning trend NPA Trend NPA (USDmn) At end of Jun 2016, combined NPA Ratio (Percentage) coverage of non performing 1,034 787 1,193 881 623 642 699 677 246 assets (NPA) was 197% 199 166 185 164 116 117 102 NPA Ratio was 3.5% 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 Subsidiaries and Associates Market Cap Kuwait-based insurance company listed Name Market position USDmn1 Country % Stake2 on the KSE #1 by GPW 114 Bahrain 56% Presence across the MENA region Operates through a network of 50 #1 by technical Unlisted
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 Subsidiaries and Associates Market Bahrain-based financial services group Name Market Position Cap Country % Stake 2 listed on the Bahrain Stock Exchange USDmn1 Activities include asset management, corporate finance advisory and #1 asset management
Slide 20: United Real Estate Company (URC)
United Real Estate Company (URC) Business highlights Operations across the Middle East region through Country Key Projects a mix of fully-owned properties, subsidiaries and KIPCO Tower, Al Shaheed Tower, Marina World, Kuwait investment arms Marina Hotel, Saleh Shehab Stable rental income; rental inc
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 5.4 6.1 33.2 175 2,047 1,970 152 * 31.6 1,694 132 30.7 93 1,088 84 1,007 28.5 2013 2014 2015 H1'15 H1'16 2013 2014 2015 H1'15 H1'16 2013 2014 2015 H1'16 21 *Revenue excluding
Slide 22: Index: Debt Metrics
Index Debt Metrics 22
Slide 23: KIPCO (Parent): Debt Metrics
KIPCO (Parent): Debt Metrics (USDmn) Financial 31 December 31 December 31 December 31 June KIPCO (Parent) Targets 2013 2014 2015 2016 Cash & Cash Equivalents 472 881 1,009 1,173 Gross Debt 1,317 1,835 1,890 1,996 Net Debt 845 954 881 823 Shareholders’ Equity 1,847 1,896 1,906 1,910 Net Parent Debt /
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 2.3x - - 1.3x Dec’2019 USDmn 2016 2017 2018 2019 Cash balance Debt due during the year In April 2016, KIPCO has prepaid USD133mn (KD40mn) bilateral credit facility due in first q
Slide 25: KIPCO parent debt profile: As at 30 June 2016
KIPCO parent debt profile: As at 30 June 2016 Debt Type* Debt Maturity* Total Debt: USD2.0bn Total Debt: USD2.0bn Average debt maturity is International 3.4 years Bonds 100% 25% 23% - 25% 50% <1 Year 1-2 Years 2-4 Years >4 Years * As 30 of June 2016 Liquidity KIPCO has cash & bank balance of USD1,17
Slide 26: Index: 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: Index: Annexure
Index Annexure 29
Slide 30: United Industries Company (UIC)
United Industries Company (UIC) Business highlights Key Investments Market Established in 1979, UIC operates as a holding Name Sector Country Cap % Stake2 company for the group’s industrial investments USDmn1 UIC’s mission is to manage a diversified portfolio of investments in the energy, food & bas
Slide 31: URC: Balance Sheet (Break-up) as of June 2016
URC: Balance Sheet (Break-up) as of 30 June 2016 Total Asset Investment Properties Total: USD1,887m n Total: USD374m n 3% 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% 47% Marina Plaza -
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 USD506mn as on 30 August 2016 Palestine 3rd largest con
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 (2.3x coverage for 2016) Proactive liability Minimal credit management risk and strong Strong secondary market performance Average debt maturity of 3.4years 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 Israel Morocco Jordan 7.6% India Kuwait Algeria 6.0% China Bahrain Libya Egypt Qatar 3.5% MENA Saudi UAE 2.2% US Arabia Oman 2.2% UK 1.9% EU GCC Non GCC 1.4% Brazil Yemen 1.3% Russia 0.5% Japan MENA
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 stand at USD535bn at the end of 2015 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
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 8% 1 from 2016 to 2019 Annual After excluding investment income from RFFG, on average Kuwait, will run single -digit fiscal deficits between Budget fiscal
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 Jurassic Non Associated Oil & Gas Khairan City Oil & Gas Projects* Reserves Expansion: Phase 2 140mn m2 residential city, incl 10,000 Awarded: Kuwait oil Company awarded 29 houses, 22,000 apts, other facilities different work re
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