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 (May 2014)
35 slides from Kuwait Projects Company Holding (K.S.C.P.)'s debt investor presentation, May 2014
Slide 1: Building Momentum - Debt Presentation May 2014
Building Momentum D Debt Presentation | May 2014 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 AUM of USD38bn Present in 19 MENA countries Mainly financial services and media; profitable for the last 22 consecutive years Our Strategy Controlling stakes in operating businesses in growth markets Seek to generate sustainable and predictable operating
Slide 5: Key Investment Highlights
Key Investment Highlights Sustained profitable since for 22 years Proven Track Record 12 years of continuous dividends Al Futtooh Investments (AFH) owned by members of Kuwaiti ruling family have a Ruling Family controlling stake ~ 45% Shareholders Shareholders since 1998; have supported KIPCO in all
Slide 6: Business Overview
Index Business Overview 6
Slide 7: Building Businesses: Strategic roadmap
Strategic roadmap Regional MENA Outlook Investing in Target engines of ROE: growth 20% Diversified Revenue streams Balanced Building Portfolio Businesses Strong managerial Team expertise Thought Approach leadership Being first in the region Investment in companies with sustainable and predictable ca
Slide 8: Our presence by geographies & sectors
Our presence by geographies & sectors Major Sectors Geography Commercial Revenue1 Media AMIB Insurance Real Estate Industrial Others banking (2013) Kuwait ● ● ● ● ● ● ● 42% UAE ● ● ● ● 6% Bahrain ● ● ● ● 2% KSA ● ● ● 6% Jordan ● ● ● ● 12% Algeria ● ● 6% Tunisia ● ● ● 2% Egypt ● ● ● ● 7% Lebanon ● ●
Slide 9: Controlling or majority stakes
Controlling or majority stakes Main Entities KIPCO Effective 60.4% 60.4% 96.7% 83.0% 3 45.3% 65.8% Stakes1 Board Representation 6 of 9 2 of 75 6 of 6 6 of 6 4 of 104 4 of 7 Market Cap (USDmn)2 3,454 Unlisted 550 103 366 473 S&P: S&P: A- Credit BBB+/A2 Moody’s: Unrated CI*: BBB CI*: BBB- AM Best: CI*
Slide 10: Supportive Shareholder With Ruling Family Links
Supportive Shareholder With Ruling Family Links Shareholding Profile: March 2014 Kuwaiti Ruling Family Support Treasury Primary KIPCO’s principal shareholder is Al Futtooh Holding Company Shares Shareholder K.S.C. (Closed) (“AFH”), a Kuwaiti company owned by 2% (AFH) members of the Kuwaiti ruling fa
Slide 11: Key developments & Performance Update
Index Key developments & Performance Update 11
Slide 12: 2013: Operating performance continues to be strong
2013: Operating performance continues to be strong Growth % are over 2012 144% 2012 5.6% 2012 33% 175% 25% 35% 29% 81% 18% 3.4% Growth in Growth in NPA Aggregate Growth in Growth in Growth in EBITDA operating operating provision subscriber revenue EBITDA margin income profits coverage base Interest
Slide 13: Burgan Bank (BB)
Burgan Bank (BB) Business highlights Key Subsidiaries Market Cap % Kuwait based commercial bank with a Name Market Position Country (USDmn) 1 Stake2 regional presence in nine countries # 3 bank in Jordan in 2nd largest conventional bank in Kuwait terms of net credit 536 Jordan 51% facilities in
Slide 14: Burgan Bank: Regional operations
Burgan Bank: Regional operations Loan Growth Deposit Growth Net Profit^ USDbn USDbn USDmn 22% 32% 17% 35% 28% 17% 5.5 6.9 22 4.7 5.9 18 20 12 2.4 6 7 5 3 1.9 1.8 1.8 2.2 2.5 1.6 1.7 (4) (4) 0.91.1 1.4 1.2 (1) (1) 1.0 0.9 0.3 0.1 0.2 0.00.0 0.3 AGB JKB BoB TIB BBT Total AGB JKB BOB TIB BBT Total AGB
Slide 15: Burgan Bank: NPA - cyclical & not structural
Burgan Bank: NPA- cyclical & not structural NPA Trend NPA (USDmn) As on Mar’14, the combined NPA Ratio (Percentage) coverage of non performing 1,113 847 1,284 948 670 769 256 assets (NPA) is 165% 207 192 172 170 121 122 110 NPA Ratio increased from 1 1 .0 % 1 1 .8 % 90 9 .5 % 1 0 .5 % 6 .3 % 6 .
Slide 16: OSN: Overview
OSN : Overview MENA Pay TV Potential MENA Region1 Latin America UK India US 2 Population (Mn) 267 593 65 1,260 319 Pay TV (Mn; Est.) 4 37 14 133 102 2 TV Households (Mn) 53 NA 26 155 116 TV Households / Households (%) 85% NA 94% 61% 88% Pay TV/ TV Households (%) 9% 30% 53% 86% 88% Low Pay TV penetra
Slide 17: OSN: Overview...cont'd
OSN: Overview…cont’d Highlights Largest digital satellite premium Pay TV operator in MENA region Licensed to operate in 24 countries in MENA (Focused on KSA, UAE, Kuwait, Egypt, Bahrain, Qatar & Jordan) Consolidated Pay TV industry through merger of Orbit & Showtime in 2009 Active Piracy Management,
Slide 18: OSN
OSN Subscribers* Net Adds Thousand Thousand 137 1,066 995 818 858 782 71 48 36 40 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Churn Subscribers by country (March 2014) Others 17% 17% 17% 9% 17% 16% Qatar KSA 15% 26% Egypt 8% Bahrain 3% UAE Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Kuwait 31% 8%
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 and Kuwait Stock USDmn1 Exchange #2 asset management Activities include asset management, company in Kuwait by
Slide 20: Gulf Insurance Group (GIG)
Gulf Insurance Group (GIG) Business highlights Key Subsidiaries and Associates Market Cap Kuwait-based insurance company Name Market position USDmn1 Country % Stake2 listed on the KSE #1 by GPW 102 Bahrain 56% Presence across the MENA region Wide range of conventional and #1 by technical Unlisted Eg
Slide 21: 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 22: KIPCO Consolidated: Financial performance
KIPCO Consolidated: Financial performance Revenues Net Income Consolidated Assets USDmn USDmn EPS (Cents) USDbn 8.6 8.3 10.4 2.1 2.5 32.0 30.6 1,961 142 25.5 112 1,468 106 20.7 1,245 487 37 423 30 2011 2012 2013 Q1'13 Q1'14 2011 2012 2013 Q1'13 Q1'14 2011 2012 2013 Q1'14 22
Slide 23: Debt Metrics
Index Debt Metrics 23
Slide 24: KIPCO (Parent): Debt Metrics
KIPCO (Parent): Debt Metrics (USDmn) Financial 31 December 31 December KIPCO (Parent) 31 March 2014 Targets 2012 2013 Cash & Cash Equivalents 634 508 1,032 Gross Debt 1,413 1,417 1,917 Net Debt 778 909 885 Shareholders’ Equity 1,951 1,987 1,940 Net Parent Debt / Shareholders’ Equity <2.5x 0.40x 0.46
Slide 25: KIPCO Parent: Significant Cash Coverage till 2018
KIPCO Parent: Significant Cash Coverage till 2018 Current cash sufficient to meet all debt Debt obligations till Coverage Infinite 1.3x Infinite 1.8x Dec’2018 USDmn 2014 2015 2016 2017 2018 Cash Debt No debt due in near term Cash Coverage: Available Cash / Debt due in the year 25
Slide 26: KIPCO Parent debt profile: As at 31 March 2014
KIPCO Parent debt profile: As at 31 March 2014 Debt Type Debt Maturity Total Debt: USD1.9bn Total Debt: USD1.9bn Average debt maturity is International 4.1 years Bonds Local 78% Bonds 15% 0% 41% 59% 7% Term <2 Years 2-4 Years >4 Years Loan Liquidity KIPCO has cash & bank balance of USD1,032mn with n
Slide 27: Why KIPCO
Index Why KIPCO 27
Slide 28: Why KIPCO
Why KIPCO Proven strategy and Prudent financial experienced management management Team Resulting in strong liquidity with Little impact of recent turmoil in no refinancing risk the region on our businesses Group transparency Operating performance well recognized by of our businesses investors contin
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Slide 30: Annexure
Index Annexure 30
Slide 31: United Industries Company (UIC)
United Industries Company (UIC) Business highlights Key Investments Established in 1979, UIC operates as a holding Market company for the Group’s industrial investments Name Sector Country Cap % Stake2 USDmn1 UIC’s mission is to manage a diversified portfolio of investments in the energy, food & bas
Slide 32: URC: Balance Sheet (Break-up) as of 31 March 2014
URC: Balance Sheet (Break-up) as of 31 March 2014 Total Assets Investment Properties Total Assets USD1,746m n Total: USD420m n Marina World - Kuwait Investm ent properties 2% 3% 10% Land for development 3% 2% Salalah Mall - Oman 24% 5% Projects under Marina Plaza - Kuwait construction* 8% 13% Fixed
Slide 33: OSN: Acquisition of Pehla
OSN: Acquisition of Pehla Continued consolidation of MENA Pay TV 2009 2011 2013 + OSN acquired exclusive Orbit & Showtime rights from ART for select OSN acquired merged to form OSN General Entertainment Pehla channels Pehla acquisition presents a huge opportunity Deeper and bigger base: Total South
Slide 34: 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 2018 (1.8x coverage) Proactive liability Minimal credit management risk and strong Strong secondary market performance Average debt maturity investor of bonds of 4.1years confiden
Slide 35: Kuwait Development Plan Overview
Kuwait Development Plan Overview Purpose: Development Budget By Sector − Upgrade infrastructure − Diversify non oil revenue 7% − Create employment 14% Oil & Gas − Develop private sector Overview Utilities USD125bn − USD125bn 5 year plan Real Estate & Construction 18% 61% − FY 2010/11 – Budgeted
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