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 (February 2013)
39 slides from Kuwait Projects Company Holding (K.S.C.P.)'s debt investor presentation, February 2013
Slide 1: At Tipping Point – Debt Presentation February 2013
At Tipping Point D Debt Presentation February, 2013 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
Index Key Investment Highlights Business Overview Key developments & Performance Update Debt Metrics Conclusion Annexure Bloomberg Ticker: KPROJ KK Reuters Ticker: KPRO.KW 3
Slide 4: Our Business, Strategy and Team
Our Business, Strategy and Team KIPCO is a multi-sector operating holding company with a diversified portfolio spanning the GCC and wider MENA region OUR BUSINESS AUM^ of US$25 billion1 Present in 16 MENA countries Mainly financial services and media; profitable for the last 20 consecutive years OUR
Slide 5: Key Investment Highlights
Key Investment Highlights Proven Track Profitable since last 20 years Record 10 years of continuous dividends Ruling Family Al Futtooh Investments (AFH) owned by members of Kuwaiti ruling family have a Shareholders controlling stake Market #1 insurer in Kuwait1 , #1 pay-TV platform in MENA, 2 rd lar
Slide 6: Index
Index Key Investment Highlights Business Overview Key developments & Performance Update Debt Metrics Conclusion Annexure 6
Slide 7: Strategic Roadmap
Strategic Roadmap Building Businesses Regional Thought Outlook leadership Investing Strong in engines managerial Being first Diversified MENA of growth revenue expertise in the streams region Target Team Approach ROE: 20% Balanced Portfolio Investment in companies with sustainable and predictable ca
Slide 8: Our presence by geographies & sectors
Our presence by geographies & sectors Major Sectors Geography Asset Commercial management Revenues1 Media Insurance Real Estate Industrial Others banking & investment (2011) banking Kuwait ● ● ● ● ● ● ● 50% UAE ● ● ● 4% Bahrain ● ● ● ● 7% KSA ● ● ● 4% Jordan ● ● ● ● ● 16% Algeria ● ● ● ● 5% Tunisia
Slide 9: Controlling or majority stakes
Controlling or majority stakes Business Commercial Asset Management & Media Insurance Real Estate Segments Banking Investment Banking (AMIB) Main Entities KIPCO Effective 60.2% 60.4% 96.0% 82.4% 3 44.8% 62.9% Stakes 1 Board 6 of 9 2 of 75 6 of 6 6 of 6 4 of 104 4 of 7 Representation Market Cap 2,962
Slide 10: Supportive Shareholder With Ruling Family Links
Supportive Shareholder With Ruling Family Links Shareholding Profile: Dec 2012 Kuwaiti Ruling Family Support Retail Treasury ❖ KIPCO’s principal shareholder is Al Futtooh Holding Investors Shares Company K.S.C. (Closed) (“AFH”), a Kuwaiti company 4.6% 3.3% HNIs Al Futtooh owned by members of the Kuw
Slide 11: Index
Index Key Investment Highlights Business Overview Key developments & Performance Update Debt Metrics Conclusion Annexure 11
Slide 12: Key highlights of 2012
Key highlights of 2012 1. Existing businesses performing strongly Commercial banking- Loan growth of 27% (excluding inorganics) Pay TV- Subscriber and revenue growth of 30% Insurance – Net premiums growth of 10% AMIB – Recurring revenue growth of 17% 2. Acquired growth businesses at attracti
Slide 13: Strong operating performance of core companies
Strong operating performance of core companies Net profit up 10%, driven by 14% growth in net interest income Strong capital adequacy ratio of 18.5% and comfortable liquidity levels Provision coverage (aggregate of collateral) increased to 117% ( PY 108%) 33% growth in revenues; 30% growth i
Slide 14: Burgan Bank (BB)
Burgan Bank (BB) BB, the commercial banking arm of KIPCO group, today has become a regional player with market leadership in Jordan, Iraq, Tunisia and Algeria Business Highlights Key Subsidiaries Kuwait based commercial bank with a Market % regional presence in nine countries Name Market Position
Slide 15: Burgan Bank: Regional operations
Burgan Bank: Regional operations Total Assets Operating Profit Net Profit US$ billion US$ million US$ million 228 195 6.3 80 72 5.3 109 114 44 3.4 81 3.2 2.5 30 28 51 24 1.4 39 1.0 22 21 9 9 9 9 0.9 0.7 0.50.6 13 12 (1) AGB JKB BoB TIB Total BBT^ AGB JKB BoB TIB Total BBT^ AGB JKB BoB TIB Total BBT^
Slide 16: Burgan Bank: NPA- cyclical & not structural
Burgan Bank: NPA- cyclical & not structural NPA Trend As at end of 2012, the NPA (US$ million) combined coverage of non NPA Ratio (Percentage) performing assets (NPA) is 1,116 850 1,287 1,193 256 117% 208 193 173 171 121 90 122 110 NPA Ratio declined from 11.0% 11.8% 9.5% 10.5% 6.3% 6.0% 6.1% 4.
Slide 17: OSN
OSN MENA1 TV Overview Million MENA Region Latin America UK India US 410 571 63 1,207 312 Population 63 NA 26 225 132 Households 54 120 25 135 116 TV Households 2 37 14 112 102 Pay TV 85% NA 94% 60% 88% TV HHs /HHs (%) 3% 30% 54% 83% 88% Pay TV/ TV HHs (%) Market Capitalization of #1 N/A 32.9 20.2 1.
Slide 18: OSN (Cont'd)
OSN (Cont’d) The #1 pay-TV platform by revenue in the MENA region Business Highlights Geographical Presence (24 countries) Largest pay TV operator in MENA by revenues Syria Tunisia C yprus Morocco Le banon Iran Exclusive Western & Arabic Content; exclusive Pale stine Iraq Kuwait Jordan contracts wit
Slide 19: OSN (Cont'd)
OSN (Cont’d) Subscribers Net Adds Thousand Thousand 702 734 672 37 601 33 33 30 Q1'12 Q2'12* Q3'12 Q4'12^ Q1'12 Q2'12 Q3'12 Q4'12^ Churn Subscribers by country (December’ 2012) Others 17% 12% 17% 17% KSA 16% 24% Qatar 14% Egypt 9% UAE Bahrain 29% Q1'12 Q2'12 Q3'12 Q4'12^ 3% Kuwait 9% Quarterly Reven
Slide 20: United Gulf Bank (UGB)
United Gulf Bank (UGB) UGB, the Asset Management and Investment Banking arm of KIPCO Group, is focused on growing the financial services network across the MENA region Business Highlights Key Subsidiaries and Associates Bahrain-based financial services group listed on the Market Market Position Coun
Slide 21: Gulf Insurance Company (GIC)
Gulf Insurance Company (GIC) GIC, the insurance arm of KIPCO, is amongst the top 6 insurance players in the MENA Region Business Highlights Key Subsidiaries/Associates Kuwait-based insurance company listed on the KSE Market Market Coun % Name Cap Presence across the MENA region position -try Stake1
Slide 22: United Real Estate Company (URC)
United Real Estate Company (URC) URC is a major real estate player in Kuwait, ranked second based on its revenues on KSE Business Highlights Country Key Projects Operations across the Middle East region through a Kuwait KIPCO Tower, Al Shaheed Tower, Marina World, mix of fully-owned properties, subs
Slide 23: KIPCO Consolidated: Financial performance
KIPCO Consolidated: Financial performance Revenues Net Income Consolidated Assets US$ million US$ million US$ billion 1,434 1,466 1,575 25.6 1,261 162 21.0 20.3 19.1 132 111 108 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 23 * Subject to approval in AGM
Slide 24: Index
Index Key Investment Highlights Business Overview Key developments & Performance Update Debt Metrics Conclusion Annexure 24
Slide 25: KIPCO (Parent): Debt Metrics
KIPCO (Parent): Debt Metrics (US$ million) Financial KIPCO (Parent) Dec 31, 2010 Dec 31, 2011 Dec 31, 2012* Targets Cash & Cash Equivalents 1,022 423 635 Gross Debt 1,894 1,248 1,418 Net Debt 873 825 783 Shareholders’ Equity 2,018 2,072 2,046 Net Parent Debt / Shareholders’ Equity <2.5x 0.43x 0.40x
Slide 26: KIPCO Parent: Cash Coverage
KIPCO Parent: Cash Coverage* US$ million 1,897x Infinite Infinite 2.2x Current cash sufficient to meet all debt 635 635 635 635 obligations till September 2016 284 0 - - Dec'2013 Dec'2014 Dec'2015 Sep'2016 No debt due in near Cash Debt Debt Coverage and medium term Sufficient cash coverage with no s
Slide 27: KIPCO Parent debt profile: As at Dec 2012
KIPCO Parent debt profile: As at 31 Dec 2012* Debt Type Debt Maturity Total Debt: US$ 1.4 billion Total Debt: US$ 1.4 billion 0-2 years, Term Loan 0.0% 10% Bonds > 4 years, 20% 45.0% MTN 2-4 years, 70% 55.0% Enhanced Debt Maturity Profile Liquidity KIPCO has cash & bank balance of US$635 mn 5.1 yrs
Slide 28: Index
Index Key Investment Highlights Business Overview Key developments & Performance Update Debt Metrics Conclusion Annexure 28
Slide 29: Conclusion
Conclusion Proven strategy and experienced management team Little impact of recent turmoil in the region on our businesses Operating performance Prudent financial of our businesses management continues to improve Resulting in strong liquidity Increased visibility on with no refinancing risk operatin
Slide 30: Thank You
Thank You
Slide 31: Index
Index Key Investment Highlights Business Overview Key developments & Performance Update Debt Metrics Conclusion Annexure 31
Slide 32: United Industries Company (UIC)
United Industries Company (UIC) UIC seeks to be a leading regional investment house with activities in the industrial sector Business Highlights Key Investments Established in 1979, UIC operates as a holding Name Sector Country % Stake1 company for the Group’s industrial investments Saudi Dairy and
Slide 33: UGB: Streamlining
UGB: Streamlining Total Assets Total Debt US$ million US$ million 1,515 1,241 610 340 2011 2012 2011 2012 Employee Expenses Interest Expenses US$ million US$ million 41 8 33 7 2011 2012 2011 2012 33
Slide 34: KAMCO: Streamlining
KAMCO: Streamlining Total Assets Total Debt US$ million US$ million 531 222 142 274 2011 2012 2011 2012 Employee Expenses Interest Expenses US$ million US$ million 13 15 9 11 2011 2012 2011 2012 34
Slide 35: URC: Balance Sheet (Break-up)
URC: Balance Sheet (Break-up) Total Assets Investment Properties Total Assets US$ 1,959 million 1 Total : US$ 864 million 2% 3% KIPCO Tower - Kuwait 3% Investm ent properties 2%2% 5% 3% Marina World - Kuwait Land for development 6% Salalah Mall - Oman Projects under 5% Shaheed Tower - Kuwait constru
Slide 36: KIPCO: Huge Value Potential for Investors
KIPCO: Huge Value Potential for Investors No Repayment risk Has sufficient cash to service all debt obligations till Sep 2016 (2.2x coverage) Proactive liability Minimal credit management risk and strong Strong secondary market performance Average debt maturity of 5.1 years investor of bonds confide
Slide 37: Key Development: Liability & funding cost optimization
Key Development: Liability & funding cost optimization On 16th January 2012, KIPCO completed a 4 year KD denominated bond of KD80 million (US$ 287 million) ❑ Key terms: ❑ Maturity: 4 year bullet maturing 15th January 2016 ❑ Pricing: Tranche 1: Fixed rate @4.75% Tranche 2: Floating rate @ Kuwait cent
Slide 38: Kuwait development plan update
Kuwait development plan update What has happened so far? Development Plan (In US$ Bn) FY2010/11 FY2011/12 KD31 bn (US$108 bn) 4 year plan starting FY 2010/11 The political situation in Kuwait has slowed down the execution of development plan 8.2 6.6 Allocated Allocated Allocation bill for FY 2012/13
Slide 39: Kuwait Development Plan
Kuwait Development Plan Purpose: Overview − Upgrade infrastructure − US$108 billion 4 year plan − Diversify non oil revenue − FY 2010/11 – Approved at US$18 billion comprising of 884 projects − Create employment − FY 2011/12 – Estimated at US$18.7 billion comprising of 1,240* projects − Develop
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