Centum Investment Company Plc · NSEKE:CTUM
Centum Investment — HY2025 Earnings Presentation
36 slides from Centum Investment's earnings presentation, Nov 29, 2024
Slide 1: HY2025 Results Announcement
HY2025 Results Announcement For the Period ended 30 September 2024 November 29th, 2024 www.centum.co.ke
Slide 2: Agenda
Agenda 1. BUSINESS REVIEW 2. FINANCIAL REVIEW 3. OUTLOOK 2
Slide 3: Business Review
SECTION 01: BUSINESS REVIEW 3
Slide 4: Business Review: Company Overview
SECTION 01: BUSINESS REVIEW Company Overview 4
Slide 5: Our Business Model
Our Business Model Our Competitive Advantage Deploy Create & Capital Grow Value IDENTIFY A high-quality portfolio Identify compelling • Institutionalize Identifying and or creating comprising assets with opportunities and robust governance high quality investment potential for both significant deplo
Slide 6: Company Snapshot | Sep 2024
Company Snapshot | 30 Sep 2024 Portfolio Allocation as of 30 Sep 2024 Market Capitalisation(1) KES 6.3 billion Growth Portfolio Marketable Securities Total Assets KES 96% 4% 47 billion 10x growth since Mar 2009 (2) KES Net Asset Value 41.2 billion [ Kes 63 NAV per share ] Total Assets 47 Cumulative
Slide 7: FY2009 – HY2025 Snapshot
FY 2009 – HY 2025 Snapshot. Annualized Dividend Growth in Return Distribution Shareholders’ Equity KES 18.0% 5.1 billion 10.3X Company Snapshot • The shareholders’ equity value at March 2009 was Kes 4.1Bn. Centum value creation and distribution (FY2009 - HY2025) • Centum has since made dividend dist
Slide 8: Business Review: Strategy Update
SECTION 01: BUSINESS REVIEW Strategy Update 8
Slide 9: Centum 5.0 FY2025–FY2029 Strategic Objectives
Centum 5.0 [ FY2025 – FY2029 ] | Strategic Objectives – Strategic Theme: Value Optimisation Key Pillars Strategic Objectives ▪ Generate a minimum of 30% annualized return on equity. Return and ▪ Grow Net Asset Value from Kes 41Bn to Kes 152Bn Dividend Pay-Out ▪ Have at least 5 solid subsidiary compa
Slide 10: Strategy Overview – FY2025 Key Focus Areas
Strategy Overview – FY2025 Key Focus Areas Objectives Progress Highlights ▪ Kes 2.2 Billion cash was generated from operations and investment activities in the six-months period. Balance sheet ▪ We are actively advancing portfolio monetization efforts which will unlock significant sustainable long-t
Slide 11: Business Review: Portfolio Review
SECTION 01: BUSINESS REVIEW Portfolio Review 11
Slide 12: HY2025 Summary Carrying Value
HY2025 Summary Carrying Value 30 September 2024 Centum's Portfolio Summary – Equity Value Shareholder loans Total Carrying Value Valuation Method Nature of Business Sector Stake 30 Sep 2024 Kes Mn Kes Mn Kes Mn Development of Grade A offices and residential units within TRIFIC Two Rivers Land Co. SE
Slide 13: Key Portfolio Updates | September 2024
Key Portfolio Updates | 30 September 2024 Total Assets - KES 47 Bn | Total NAV – 41.2 Bn | NAV Per Share – KES 63.0 GROWTH ASSETS CASH GENERATING ASSETS Development Co. Land Co. Marketable Securities Portfolio 13
Slide 14: Portfolio review – Two Rivers Land Company SEZ
Portfolio review – Two Rivers Land Company SEZ Business Model Centum’s Stake: 80.5% A hub for export-oriented service enterprises Carrying Value: Kes 11Bn ▪ TRIFIC SEZ is domiciling export-oriented service enterprises and investment companies which are expected to significantly contribute to stimula
Slide 15: Portfolio review – Centum Real Estate: Land sales
Portfolio review – Centum Real Estate | [A] Land sales Land Co Centum’s Stake: 100% Sales Traction; Cash Collections and Profit Potential Cost Carrying Value: Kes 23.2Bn Land sales segment Total Value [Land+Infra] Profit Potential Cash collected Receivables (Kes Bn) (Kes Bn) (Kes Bn) (Kes Bn) Signed
Slide 16: Portfolio review – Centum Real Estate: Residential units
Portfolio review – Centum Real Estate | [B] Residential units Dev Co Strong sales traction and cash generating capacity Centum’s stake: 100% Net Cash Total Value Total Cost Profit Cash collected Receivables Cost to complete Residential Units Segment Realizable (Kes Bn) (Kes Bn) Potential (Kes Bn) (K
Slide 17: Portfolio review – Akiira Geothermal
Portfolio review – Akiira Geothermal Centum’s Stake: 75% Business highlights and progress Carrying Value: Kes 1.06Bn ▪ Akiira Geothermal is strategically well-placed to provide base load power to the grid and captive consumers to capture the significant and growing demand for green energy in Kenya a
Slide 18: Portfolio review – Longhorn Publishers
Portfolio review – Longhorn Publishers Diversified market presence Centum’s stake: 60.2% FY2024 Performance Highlights Carrying Value: KES 426Mn ✓ 42% revenue growth due to increasing market penetration. ✓ 36% operating cost reduction resulting from cost efficiency improvement initiatives. Market Op
Slide 19: Other Growth Assets
Other Growth Assets + 27% ✓ Kes 12 Bn growth in Total Assets between Sep 2023 and Sep 2024. Total Assets + 64% ✓ Kes 17 Bn growth in Customer Deposits between Sep 2023 and Centum’s Stake | 20% Customer Deposits Sep 2024. Carrying Value | Kes 0.9 Bn + 35% ✓ Kes 100 Mn growth in loan book registered i
Slide 20: Cash Generating Assets
Cash Generating Assets ▪ 22% y-o-y revenue growth. ▪ 21% y-o-y EBITDA growth. Centum’s Stake | 15% ▪ Continues to diversify revenue streams from Passenger Comfort (in-train) Services and Corporate Catering. Carrying Value | Kes 1.1Bn ▪ The business has sustained dividend distribution following the r
Slide 21: Cash Generating Assets: Marketable Securities Portfolio
Cash Generating Assets MSP Asset Allocation (Kes Mn) Mar 2024 Sep 2024 Cash & Equivalents Cash & Equivalents 5% 8% Marketable Securities 20% Portfolio & Cash 28% Government Bonds (LCY) 14% Government Bonds (LCY) 0% Kes Kes Government Bonds 2.8Bn Government Bonds 1.9Bn (Eurobonds) 6% (Eurobonds) Corp
Slide 22: Financial Review
SECTION 02: FINANCIAL REVIEW 22
Slide 23: Financial Review: Company Financial Performance
SECTION 02: FINANCIAL REVIEW Company Financial Performance 23
Slide 24: Company Performance Highlights – Total Return Statement
Company Performance Highlights - Total Return Statement Centum’s focus as an investment holding company is to grow and preserve shareholder value, measured by the Company’s Net Asset Value (NAV). The Total Return Statement shows the shareholder value generated in a period. Performance Highlights: Ce
Slide 25: Company Cash Flows
Company Cash Flows Kes 2.2 Bn cash generated from operations (annuity income, shareholder loan repayments and proceeds from exits). Kes 1.4Bn debt and interest repayments were made in HY2025. Performance Highlights: Reconciliation of profit/(loss) to cash flows Sep 2024 Sep 2023 ▪ The Company genera
Slide 26: Company Statement of Financial Position
Company Statement of Financial Position Kes Mn Sep 2024 Mar 2024 %Δ Kes Mn Sep 2024 Mar 2024 %Δ Growth portfolio: Borrowings 682 1,951 (65%) - Investment in Subsidiaries 30,426 30,786 (1%) Other Liabilities 5,165 5,090 1% Total Liabilities 5,847 7,041 (17%) - Debt Investment in Subsidiaries 9,868 9,
Slide 27: Company Debt Analysis
Debt Review - Company Debt Analysis 65% reduction in debt was achieved following Kes 1.2Bn repayment of outstanding bank facilities Mar-2019 Mar-2020 Mar-2021 Mar-2022 Mar-2023 Mar-2024 Sep-2024 Kes Mn Kes Mn Kes Mn Kes Mn Kes Mn Kes Mn Kes Mn Revolving credit facilities/ Term Loan 16,036 6,448 3,10
Slide 28: Financial Review: Consolidated Financial Performance
SECTION 02: FINANCIAL REVIEW Consolidated Financial Performance 28
Slide 29: Statement of Comprehensive Income
Statement of Comprehensive Income 55% improvement in consolidated profit before tax was Performance Highlights: driven by improved performance across 3 major segments. ▪ Consolidated P&L aggregates the performance of subsidiaries proportion of the performance of associates and joint venture entities
Slide 30: Statement of Consolidated Financial Position
Statement of Consolidated Financial Position Performance Highlights: Kes Mn Sep 2024 Mar 2024 %Δ Investment portfolio 7,825 8,197 (5%) ▪ Consolidated Statement of Financial position aggregates the assets and liabilities of Loans and advances 381 271 41% subsidiary companies, the net equity value of
Slide 31: Group Debt Analysis and Centum's Contingent Exposure
Group Debt Analysis and Centum’s Contingent Exposure Kes 6.5Bn of debt is guaranteed by Centum at Centum Real Estate Limited and Two Rivers Land Co. SEZ Limited. The outstanding exposures are adequately covered by the assets held in the respective subsidiaries. Summary group borrowings by portfolio
Slide 32: Financial Review: Share Buyback Update
SECTION 02: FINANCIAL REVIEW Share Buyback Update 32
Slide 33: Share Buyback Update
Share Buyback Update The primary objective of the Share buyback program was to provide liquidity to the counter for value preservation, and this has largely been achieved. ▪ Centum initiated its first buyback program from 6th Feb 2023 to 30th Sep 2024 at an offer price of Kes 9.03, and 10.6Mn shares
Slide 34: Outlook
SECTION 03: OUTLOOK C CENTUM 34
Slide 35: HY2025 Outlook
HY2025 Outlook Objectives Actions • Implementation of business model transformation initiatives to achieve Portfolio value optimization growth in portfolio value e.g. Two Rivers Land Co. SEZ, Akiira, Centum Real Estate, Jafari Credit and other portfolio companies. • Monetization of mature growth por
Slide 36: Centum Investment Company Plc contact details
Centum Investment Company Plc 8th Floor, South Tower, Two Rivers PO Box 10518-00100 Nairobi, Kenya Tel: (+254) 20 228 6000 / (+254) 709 902 000 Email investorelations@centum.co.ke www.centum.co.ke
Centum Investment Company — HY2025 Earnings Presentation on 6ix