Kuwait Projects Company Holding (K.S.C.P.) · KSE:KPROJ
Kuwait Projects Company Holding (K.S.C.P.) — Kipco — Investor Presentation (July 2023)
32 slides from Kuwait Projects Company Holding (K.S.C.P.)'s investor presentation, July 2023
Slide 1: KIPCO July 2023
gauS KIPCO July 2023
Slide 2: Disclaimer
Disclaimer This presentation has been made for informational purposes and does not involve an invitation to subscribe to, purchase, or sell any security. No warranty is given on the accuracy or completeness of the information in this presentation. Independent research is recommended to evaluate and
Slide 3: Overview
OVERVIEW
Slide 4: Gateway to MENA with superior access to opportunities
SIZE GEOGRAPHY SECTORS TRACK RECORD MERGER Majority owned by the family Experienced management Listed on Boursa Kuwait Credit ratings: office of the Kuwaiti ruling team led by Market cap of US$2.0bn3 Fitch: BB, Moody’s: Ba2 family Sheikha Dana Al Sabah Gateway to MENA with superior access to opportu
Slide 5: Recent updates
Recent updates > bhp» GIG Sale transaction Transaction overview In April 2023, KIPCO signed a binding agreement to sell KIPCO Group’s stake in GIG to Fairfax for US$86omn i.e., KD2/share Profit from the sale is expected to be in the range of KD70-80 million Subject to regulatory approvals, the trans
Slide 6: Diversified portfolio
Diversified portfolio... Petrochemical and Oil Services Equate | TKOC KPPC | TKSC NAPESCO | UOP \ y, pri ia SeRSM WAT VAAN XY y, Food & Beverages AMIB KAMCO Media Insurance Healthcare Logistics & Real Estate Each sector's contri bution to portfol io: 25%-30% 25%-30% ©.15% 5-7% 5-7% 5-7% 5-7% 5-7%
Slide 7: Supportive shareholders
Supportive shareholders , p p \ KIPCO’s single largest shareholder is Al Futtooh Holding Company K.S.C. (Closed) (AFH), a Kuwaiti company owned by family office of the Kuwaiti ruling family * Post merger, AFH continues to be the largest shareholder with c.32% ownership * Has supported KIPCO in all i
Slide 8: Quality assets: market leadership of key portfolio companies
Quality assets: market leadership of key portfolio companies ) |) \ 2 g a RURGAN RANK KAMCO #2 HEA #1 #2 Conventional bank in Kuwait! Insurer in Kuwait?, Bahrain’, Jordan® & Egypt® Among top three insurers in MENA region Asset manager in Kuwait with highest AUM Listed real estate player on Boursa Ku
Slide 9: Controlling or significant stakes in key portfolio companies
° ° og ° ° ° Yo \ Controlling or significant stakes in key portfolio companies ’ ) \ K_/ KAMCO @ seas Group Effective 62% 6% 45% 41% 91% 56%2 70% 66% 59% 61% Stakes! Board 8of1 10f10 4of10 50f9 50f8 4of5 3 of 74 5 of7 4ot7 4of5 Representation weSeep 2,256 Unlisted 1,604 2,889 1,446 108 Unlisted 231
Slide 10: Our strategy
Our strategy ; b \ iN \ Building Businesses Partner with global or local businesses with a proven track record Maximize value from businesses with a medium-to long-term horizon Seek to generate sustainable, predictable operating cash flows and ROE over the business cycle Controlling or significant s
Slide 11: Lu - < (a) oO =) Lu O = < = oO O Le
Lu - < (a) oO =) Lu O = < = oO O Le oO Lu oO
Slide 12: Operating performance key highlights 2022 and Q1 2023
Operating performance key highlights 2022 and Q1 2023 b ) \ h ye A XK Stable operating income of US$757mn for FY 2022 and net profit of US$1zomn (15% growth vs. 2021), supported by improving net interest margins (2.2% vs 1.9% in 2021) In Feb 2023, sold its 51.8% stake in Bank of Baghdad to Jordan Ku
Slide 13: United Real Estate and United Gulf Holding results
United Real Estate | i poorer iad Company = Revenue of US$276mn in 2022 (vs. US$277mn in 2021); net profit of US$11mn* in 2022 (vs. loss of US$16mn in 2021) = Completed merger of United Towers Holding Company (UTHC) and Al Dhiyafa Holding Company (DHC) on 22 December 2022. Enhanced portfolio of inco
Slide 14: KIPCO consolidated financial performance
KIPCO consolidated financial performance Revenue! US$ mn Net Profit US$ mn 3,466 82 57 2,353 ! ' i H ' 1,023 ' H ' 7 i ul |_| _ 2021 2022 Qr22 Q1'23 2021 2022 Qr22 Q1'23 Total Assets? US$ bn Shareholder’s Equity? US$ mn 37.3 38.6 1,936 1,964 2022 Q1'23 2022 Q1'23 "Revenue for QI 2023 and QI 2022 may
Slide 15: Why KIPCO
WHY KIPCO
Slide 16: Why KIPCO
Why KIPCO Outstanding track record Experienced management team Compelling strategy Supportive major shareholders Transparent Market Leadership KIPCO on a path to a stronger growth
Slide 17: Executive management
Executive management 7] EB Sheikha Dana Nasser Sabah Al Ahmad Al Sabah | Group CEO Appointed KIPCO’s Group CEO in January 2022 and has been a Board Member since 2020, She is the Founder and Chair of the Board of Trustees of the American University of Kuwait (AUK) and the Chairperson of United Educat
Slide 18: Thank you
THANK YOU
Slide 19: Appendix
APPENDIX * GROUP COMPANIES’ PERFORMANCE * MACRO DATA
Slide 20: Burgan Bank
Burgan Bank Business highlights Key Franchises Kuwait based commercial bank with regional presence in five countries Name) Market Position 2"4 Jargest conventional bank in Kuwait in terms of assets (US$23.sbn") a BBB+ rating from S&P, Baai from Moody's, A+ from Capital Intelligence penne #2 conventi
Slide 21: Equate Group
Equate Group Business highlights * Kuwait based petrochemical company with operational presence in 11 countries through its subsidiaries * Product portfolio - Ethylene Glycol (EG, production capacity of 32mn MT), Polyethylene (PE, production capacity of umn MT) and Polyethylene Terephthalate (PET, p
Slide 22: Gulf Insurance Group
Gulf Insurance Group Business highlights * Kuwait-based insurance company with operations in life and non-life as well as Takaful insurance; market cap of US$i1,604mn" * Presence across the MENA region in 13 countries through a network of over 85 branches; market leader in 4 countries » GIG successf
Slide 23: SADAFCO
SADAFCO Business highlights Saudi Arabia-based leading food & beverage company, with operations in the Middle East and Europe Market leader in KSA’s Plain UHT milk, Tomato paste and Ice cream, marketing its core products under the flagship Saudia brand Diversified revenue: > By product: Milk 69%, Ic
Slide 24: United Real Estate Company (URC)
United Real Estate Company (URC) Business highlights * Operations across the Middle East region through a mix of fully-owned properties, subsidiaries and investment arms * Presence across retail, hospitality, residential and office sectors * Engaged in developing Kuwaiti’s first-ever comprehensive m
Slide 25: United Gulf Holding Company (UGH)
United Gulf Holding Company (UGH) Business highlights Key Franchises * Bahrain-based financial services group listed on the Bahrain Stock Exchange * Activities include asset management, corporate finance advisory and brokerage services * Asset base of US$3.1bn" # FIMBANK __ Niche trade finance playe
Slide 26: Jordan Kuwait Bank (JKB)
Jordan Kuwait Bank (JKB) Business highlights Operational highlights Jordan based commercial bank with operations in Jordan, Iraq, Cyprus and Branches? Jordan Stake? In Dec 2022, JKB completed the acquisition of 77% stake in BHM capital, UAE | - 66 (o 51% In Feb 2023, JKB completed the acquisition of
Slide 27: NAPESCO - National Petroleum Services Company
NAPESCO - National Petroleum Services Company Business highlights + A Kuwait based leading provider of Upstream Oilfield Services including Cementing, Stimulation, Coiled Tubing, Nitrogen, and Downhole Service Tools along with pumping services to the Kuwait energy sector * Core activities involve se
Slide 28: JTC and ATC
JTC - Jassim Transport & Stevedoring Company , fs Business highlights * Kuwait headquartered inland transportation company with operations in Kuwait, Qatar & Saudi Arabia * Leading service providers of Ports management, Contract Logistics, Equipment Leasing and Power Rental with asset size of US$207
Slide 29: KARO - The Kuwait Aromatics Company
KARO - The Kuwait Aromatics Company » b» Business highlights Operational highlights * Kuwait based holding company with aromatics production facilities through its subsidiaries KPPC and TKSC Benzene - 393,000 MT Production + Itis involved in manufacturing of Paraxylene, Benzene and Capacity Styrene
Slide 30: KSA Qatar KSA
• ▪ ▪ ▪ ▪ • ▪ ▪ ▪ • • • KSA Kuwait KSA Oman Qatar UAE Egypt
Slide 31: Kuwait fundamentals remain strong
Kuwait fundamentals remain strong... eran or = SF or NY Increased production coupled with surge in oil prices boosted the oil revenues AA/A1/A+ (Fitch/Moody's/S&P) One of the highest rated sovereigns ma = Supported by low fiscal break-even oil price B (usso2.9 per barrel") 6 largest Proven oil reser
Slide 32: GCC outlook cautious due to global developments
...as Well as for the GCC, though outlook is cautious due to global developments Nominal GDP (US$ Bn, 2023E) Real GDP Growth (% yoy, 2023E) Gross debt (% GDP, 2023E) KSA [ER 1,062 KSA I 3.1 KSA 24 UAE [i 499 UAE I ss UAE [si Qatar 220 Qatar I 24 Qatar I 46 Kuwait I 165 Kuwait Hi 0.9 Kuwait | 3 Oman