Kuwait Projects Company Holding (K.S.C.P.) · KSE:KPROJ
Kuwait Projects Company Holding (K.S.C.P.) — Kuwait Projects Company Holding (KIPCO) — Shafafiyah Forum 2010
18 slides from Kuwait Projects Company Holding (K.S.C.P.)'s conference presentation, March 2010
Slide 1: Ready to Spring Investor Presentation
Ready to Spring Investor Presentation March 2010
Slide 2: Disclaimer
Disclaimer This presentation is not an offer or invitation to subscribe for 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 condit
Slide 3: Agenda
Agenda 2009: Year in Review 2010: Opportunities 3
Slide 4: 18 years of continuous profitability
18 years of continuous profitability (KD million) (KD million) 6% 48% 92% 100% 2009 466 157 46 44 2008 440 106 24 22 Operating Basic EPS Revenue Net Profit Profit* (Fils/share) Satisfactory performance in difficult times Close to investor guidance provided at the beginning of 2009 Strong operati
Slide 5: Share price performance
Share price performance Fils Market Analysis 600 KIPCO +89% (Fils/share) NAV* Book Value 450 KSE +17% 300 Current Value 887 521 Investment Sector +8% 150 Current Price^ 530 530 0 Mar-09 May-09 Jul-09 Oct-09 Dec-09 Mar-10 % (Discount)/Premium (40)% 2% KIPCO KSE Investment Sector Source: KSE. Share pr
Slide 6: Delivering on our promises: Existing core operations
Delivering on our promises Existing core operations Particulars Entity Driver 2008 2009 Remarks BB CAR 13.8% 16.9% Improved UGB CAR 17.2% 14.5% Maintained Net Debt Strong GIC (49) (60) Improved (KD million) Capital Base OSN Nearly debt free and working capital positive Average Debt KIPCO 2.4 3.3 Lon
Slide 7: Delivering on our promises: New initiatives
Delivering on our promises New initiatives New Initiatives Status Launch of Savings & Announced MoU with Munich Re Pension Business Regulatory approval progressing Retakaful Expected to be announced in 2010 7
Slide 8: KIPCO Core Companies: Financial Performance
KIPCO Core Companies: Financial Performance Burgan Bank United Gulf Bank KD million KD million 155 81 76 121 16 84 89 27 59 83 11 47 37 5 6 6 Operating Income* Net Profit Investment Income Net Profit 2008 2009 2008 2009 GIC OSN KD million Thousand 456 KD million 97 70 87 55 8 281 7 5 2 5 4 GPW Net P
Slide 9: Agenda
Agenda 2009: Year in Review 2010: Opportunities 9
Slide 10: Economic Outlook for 2010 is Positive
Economic Outlook for 2010 is Positive MENA: Strong Growth Prospects 9.0% Real GDP Growth: 2010E 6.4% 4.8% 4.5% 4.1% 3.7% 3.5% 2.5% 1.7% 1.5% 1.5% 0.9% China India Indo- MENA Sing- Thailand Brazil Malaysia Japan Russia U.S. U.K. nesia apore Supportive fiscal policies providing boost to overall econom
Slide 11: KIPCO: Opportunities for 2010
KIPCO: Opportunities for 2010 Groupwide “Focus on Execution” Increase urgency to capture larger market share from stronger economic growth in the MENA region Profitability Enhanced focus on converting operating profit to net profit Increase Long Range Plan (LRP) visibility Continue to enhanc
Slide 12: KIPCO: Opportunities for 2010 (cont'd)
KIPCO: Opportunities for 2010 (cont’d) Complete project Bright Destiny in commercial banking platform and focus on improving operating margins Integration & Standardization Begin integration and standardization in insurance sector Capture merger synergies in OSN and close platform Evolve org
Slide 13: 2010: KIPCO Outlook
2010: KIPCO Outlook Market conditions improving; if the momentum continues: Targeting revenue growth of ~10% Continue to grow net profit 2010 will be 19th year of continuous profitability 13
Slide 14: Thank You
SHAFAFIYAH FORUM 2010
Slide 15: Annexure: BB capitalization & NPLs
Annexure: BB capitalization & NPLs 15
Slide 16: Burgan Bank: Strongly Capitalised
Burgan Bank: Strongly Capitalised Burgan Bank Key Subsidiaries Regionalisation benefit visible in increased operating Name Market Market Country % profit Position Cap 1(KD Stake million) Key regulatory approval received for capital increase Jordan # 3 bank in 152 Jordan 51% Kuwait Jordan in term
Slide 17: Burgan Bank: Regionalisation
Burgan Bank: Regionalisation Burgan Bank transforming into a regional financial powerhouse with presence in Jordan, Iraq and Algeria Total Assets Operating Profit Net Profit KD million % Growth KD million % Growth KD million % Growth 60% 48% 15% 109% -15% 18% 37% -11% 8% 4% 7% 7% 52 29 1,212 27 44 1
Slide 18: Burgan Bank: NPL- Cyclical & Not Structural
Burgan Bank: NPL- Cyclical & Not Structural BB NPL Trend NPL cycle in 2008-10 similar to one NPL (KD million) NPL to Gross Loans (Percentage) in 2000-02 Loan Loss Reserves (against Loans 237 58 72 and Advances to Customers) created 49 54 48 11.8% 31 11.0% 6.0% 6.1% 34 34 25 10.0% during 2008-09
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