National Central Cooling Co. (P.S.C.) (Tabreed) · DFM:TABREED
National Central Cooling Co. (P.S.C.) (Tabreed) — National Central Cooling Company (Tabreed) — Investor Presentation (February 2025)
45 slides from National Central Cooling Co. (P.S.C.) (Tabreed)'s investor presentation, February 2025
Slide 1: National Central Cooling Company Investor Presentation
National Central Cooling Company Investor Presentation February 2025
Slide 2: Disclaimer
Disclaimer • These materials have been prepared by and are the sole responsibility of the National Central Cooling Company Securities Act) and may not be offered or sold except under an exemption from, or transaction not subject to, the PJSC, ‘Tabreed’ (the “Company”). These materials have been prep
Slide 3: Contents
Contents 1 Overview of Tabreed 4 2 Strategic Overview & Guidance 10 3 Sustainability at Tabreed 15 4 Financial Highlights 20 5 Business & Operating Model 27 6 Shareholding & Governance 32 7 Appendix 36 3|
Slide 4: Overview of Tabreed
a ff Overview of Tabreed
Slide 5: Tabreed at a glance
Overview Tabreed at a glance Leading international district Sustainable and energy efficient Solid financial results and track cooling company operations record of growth 92 plants 2.64 billion kWh AED 2,434 million in six countries in MENA / Asia Energy consumption saved in the last 12 months Reven
Slide 6: Our International footprint
Overview Our International footprint UAE 1,099k RT Bahrain Abu Dhabi – 48* 37k RT Manama – 1* Dubai – 22* Northern Emirates – 6* Diversified regional presence • Currently operating in the UAE, Saudi Arabia, Oman, Bahrain, India and Egypt • Exclusive provider of DC services to several iconic projects
Slide 7: Our business model
Overview Our business model CHILLED WATER BILLING TO CUSTOMERS LONG-TERM CONTRACTS TYPICALLY OVER 25 YEARS FIXED CHARGES VARIABLE CHARGES 56% of Revenue and 75% of EBITDA* 44% of Revenue and 25% of EBITDA* Capacity charges are billed monthly on contracted cooling Consumption charges are billed month
Slide 8: Our track record of delivering growth
Overview Our track record of delivering growth Connected Capacity Addition Per Year Connected Capacity Addition By Country k RT k RT +7% CAGR +6% +22% +3% +4% +3% +1% 54 39 21 1,325 304 16 9 22 4 5 1,325 209 36 965 965 2019 2020 2021 2022 2023 2024 2024 Total 2019 UAE Saudi Bahrain Oman India Egypt
Slide 9: Tabreed's Investment Proposition
Overview Tabreed’s Investment Proposition • Resilient utility-like infrastructure model with robust tariff structure Sustainability Resilient implemented across countries Enabler Business • Long-term contracts with creditworthy customers underpin Model stability and high visibility of cashflows Stro
Slide 10: Strategic Overview & Guidance
02 Strategic Overview & Guidance
Slide 11: Strategy Update
Strategic Overview Strategy Update Tabreed aims to be the leader in sustainable cooling and associated services in the MENA region and beyond STRATEGIC PILLARS GROWTH EXCELLENCE GOVERNANCE PEOPLE INNOVATION Local & International Business Excellence Governance & Control People Focus R&D and Innovatio
Slide 12: Key market trends underpin positive district cooling outlook
Strategic Overview Key market trends underpin positive district cooling outlook Urbanization and Mega Projects: Increasing demand driven by large-scale urban developments (e.g. smart cities, mega-events like Expo). Rise in Space GCC Government Regulations: Well-developed in the UAE, with ongoing for
Slide 13: Capitalizing on expansion opportunities to sustain long-term growth
Strategic Overview Capitalizing on expansion opportunities to sustain long-term growth Core market provides high revenue New markets offer visibility and stable growth strong growth upside UAE International +7% CAGR 0.3m RT 0.36m RT 1.325m RT 0.97m RT 2019 Capacity 2024 New Greenfield M&A Greenfield
Slide 14: Guidance Update
Strategic Overview Guidance Update 2023-2024 Two years Capacity Guidance Update k RT Medium-term Guidance (2025 – 2027) 2023 - 2024 Capacity Guidance 100 Capacity Growth Organic Capex 2023 – 2024 Actual Capacity Delivered 77 • After 53k RT k RT was added in 2023, additional 24k RT was delivered in 2
Slide 15: Sustainability at Tabreed
03 Sustainability at Tabreed
Slide 16: Sustainable, efficient and cost-effective cooling services
Sustainability Sustainable, efficient and cost-effective cooling services Exclusive provider of District Cooling services to several Sustainable district cooling solutions enabling significant iconic projects energy savings and prevention of green house gas emissions 2.64 billion kWh Enough energy t
Slide 17: Sustainability Framework
Sustainability Sustainability Framework Tabreed’s ESG framework is built on three core pillars ESG PILLARS ENVIRONMENT STEWARDSHIP SOCIAL RESPONSIBILITY GOVERNANCE EXCELLENCE Decarbonisation Health & Safety Transparency Pursuing a roadmap to achieve net zero Protect people, contractors & community M
Slide 18: Net Zero commitment and decarbonization principles
Sustainability Overview Net Zero commitment and decarbonization principles Tabreed is actively pursuing a roadmap to achieve net zero emissions by 2050. The decarbonisation philosophy integrates pioneering technology and effective energy strategies and is guided by six core principles Some of the in
Slide 19: Responsible business practices for a positive environmental impact
Sustainability Responsible business practices for a positive environmental impact Our sustainability efforts reflects the company’s commitment to water and waste management to reduce consumption of potable water and other natural resources whilst simultaneously ensuring no harm to marine life Some o
Slide 20: Financial Highlights
04 Financial Highlights
Slide 21: FY 2024 Key Highlights
Financial Highlights FY 2024 Key Highlights Stable revenue, solid Robust operational volumes Leading the way in margins & cash flows with with healthy pipeline of sustainable cooling with a resilient balance sheet organic & M&A opportunities environmental stewardship Revenue at AED 2.43 bn (+1% YoY)
Slide 22: FY 2024 Operational Performance - consumption volumes and capacity
Financial Highlights FY 2024 Operational Performance - consumption volumes and capacity FY 2024 Chilled Water Revenue FY 2024 Consolidated Consumption Volumes Capacity by Country as of FY 2024 Fixed 2.66 billion RTh UAE, 83% KSA, 10% 55% +5% YoY 1,325 k RT Oman, 4% Variable Bahrain, 3% 45% Egypt, 0.
Slide 23: Proven track record of sustainable growth and resilient margins
Financial Highlights Proven track record of sustainable growth and resilient margins Group Connected Capacity (k RT) Group Revenue (AED million) 2,415 2,434 2,216 1,174 1,210 1,264 1,303 1,325 1,955 82 88 965 1,741 75 176 196 218 226 1,520 73 175 54 170 64 2,141 2,333 2,346 999 1,034 1,069 1,086 1,0
Slide 24: Robust cash flows underpin ability to deliver attractive shareholder returns
Financial Highlights Robust cash flows underpin ability to deliver attractive shareholder returns • Consistently growing cash flows and robust balance sheet • Return on Equity and Return on Capital Employed showing provide a strong foundation to deliver attractive long-term improving trends, reflect
Slide 25: Strong balance sheet and improving leverage ratios
Financial Highlights Strong balance sheet and improving leverage ratios Balance Sheet Breakdown Debt Profile and Leverage Ratios 14,840 14,118 5,378 6,165 5,536 4,929 4,625 Net Debt 1,510 Profile Cash & ST Deposits 801 1,023 2,740 2,914 622 699 622 Receivables & Others 4,049 3,981 2018 2019 2020 202
Slide 26: Optimum utilisation of cash to reduce leverage and increase dividends
Financial Highlights Optimum utilisation of cash to reduce leverage and increase dividends Cash Movement Free Cash Flows AED 971 m 1,258 (69) 21 5 36 17 (257) (187) 1,510 (831) 1,023 (441) (40) Cash Flows Capex - net Dividends Interest Debt Repaid Dividend to from Operations JVs/Associates Received
Slide 27: Business and Operating Model
05 Business and Operating Model
Slide 28: Utility-like resilient business model
Business & Operating Model Utility-like resilient business model Chilled Water Revenue Chilled Water Costs and Overheads Chilled Water EBITDA 56% 44% 36% 64% 75% 25% * Based on 3 years’ average over 2022-24 Fixed Charges Variable Charges Majority of revenue and EBITDA comes from capacity charges Rev
Slide 29: Long term contracts generates stable and recurring revenues
Business & Operating Model Long term contracts generates stable and recurring revenues • Long term contracts of typically 25+ years • Only construct plants on guaranteed offtake contracts with take-or-pay structures • Limited contract renewal risk o Less than 5% of the company’s contracted capacity
Slide 30: Contracts with top tier and creditworthy customers
Business & Operating Model Contracts with top tier and creditworthy customers Key customers Chilled water revenue by customer ownership • UAE Armed Forces was the first customer of the Company and continues to be an important Majority govt owned partner 25% • Tabreed cools multiple military and trai
Slide 31: Solid operational credentials
Business & Operating Model Solid operational credentials Tabreed’s in-house team has been successfully designing, building, operating and maintaining some of the biggest district cooling systems across the region for 27 years O&M STRATEGY Safely operate and maintain the plants and facilities to prov
Slide 32: Shareholding and Governance
06 Shareholding and Governance
Slide 33: Shareholder overview
Shareholding & Governance Shareholder overview Strong shareholders and solid corporate governance 1 “Tabreed benefits from a supportive and complementary shareholder base. We view Mubadala and ENGIE as strong commercial and technical backers for Tabreed in the region. Both anchor shareholders also p
Slide 34: Board of Directors
Shareholding & Governance Board of Directors Nine-member board brings wealth of expertise and strengthens Tabreed’s governance Dr. Bakheet is the Chief Executive Officer, UAE Investments platform and Paulo Almirante is currently Senior Executive Vice President of global energy Investment Committee M
Slide 35: Senior Management
Shareholding & Governance Senior Management Khalid Al Marzooqi Adel Salem Al Wahedi Nadia Bardawil Dr. Yousif Al Hammadi Antonio Di Cecca Philippe Coquelle Chief Executive Officer Chief Financial Officer Chief Legal Counsel Chief Asset Management Officer Chief Operating Officer Chief Development Off
Slide 36: Appendix
f& Appendix
Slide 37: Financial Summary
Financial Highlights Financial Summary Income Statement Balance Sheet Cash Flows FY FY FY FY FY FY YoY (%) YTD (%) YoY (%) 2024 2023 2024 2023 2024 2023 Revenue 2,434 2,415 1% Non-current Cash flows 12,067 12,210 (1)% 1,258 1,204 4% Assets from Oper. Gross Profit 1,081 1,082 0% Current Changes in 2,
Slide 38: Income Statement Highlights
Financial Highlights Income Statement Highlights FY 2024 Revenue Movement (YoY) FY 2024 Gross Profit Movement (YoY) Chg. YoY +3% +6% -14% +1% Chg. YoY +1% +1% 0% 64 5 2,434 1,082 18 1,081 2,415 (19) (51) FY 2023 Chilled Water Value Chain Lease Income FY 2024 FY 2023 Revenue Operating Cost FY 2024 FY
Slide 39: Connected Capacity and Volumes
Overview Connected Capacity and Volumes Consolidated 2019 2020 2021 2022 2023 2024 UAE 724 928 1,025 1,060 1,053 1,066 Bahrain 28 32 33 34 37 37 Oman 32 32 33 52 53 54 India - - - - 1 4 Egypt - - - - 3 4.5 Total Consolidated 1,123 992 1,091 1,146 1,146 1,166 Equity Accounted UAE 71 71 9 9 33 33 KSA
Slide 40: District Cooling - The Big Picture
Overview District Cooling - The Big Picture With the rapidly increasing demand for cooling worldwide, district • District Cooling (DC) is a system that produces cooling is widely recognised as the only truly sustainable option 50% cooling energy at a central location and then distributes it to multi
Slide 41: Saudi Tabreed in a strong position to accelerate growth
Strategic Overview Saudi Tabreed in a strong position to accelerate growth PIF investment boosts Saudi Tabreed’s market leadership ▪ Public Investment Fund (PIF) acquired 30% stake in Saudi Tabreed in 2023 ▪ PIF’s investment further enhances Saudi Tabreed’s position as a market leader in Saudi Arabi
Slide 42: Tabreed Asia pursuing growth opportunities in underpenetrated markets
Strategic Overview Tabreed Asia pursuing growth opportunities in underpenetrated markets ▪ Tabreed Asia is a joint venture between Tabreed UAE and IFC with it’s headquarter in Singapore. Tabreed India is wholly owned subsidiary of Tabreed Asia, through which company invests, builds, owns and operate
Slide 43: Strong macro tailwinds underpin growth outlook (1/2)
Strategic Overview Strong macro tailwinds underpin growth outlook (1/2) District cooling offers remarkable efficiency and support energy resilience Space cooling to put excessive strain on electricity District cooling uses only half the energy of conventional Tabreed expects systems, consumption and
Slide 44: Strong macro tailwinds underpin growth outlook (2/2)
Strategic Overview Strong macro tailwinds underpin growth outlook (2/2) Tabreed’s key markets expected to see favorable demand drivers and rising district cooling adoption GDP growth expected to accelerate while population Strong growth potential in key markets with sizeable district cooling market
Slide 45: Contact Us
Contact Us Tabreed Investor Relations Salik Malik Yugesh Suneja Email: [email protected] Vice President, Finance Head of Investor Relations For more information, please visit Tel: +971 2 202 0397 Tel: +971 2 202 0479 www.tabreed.ae/investor-relations Email: [email protected] Email: [email protected]
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