Kuwait Projects Company Holding (K.S.C.P.) · KSE:KPROJ
Kuwait Projects Company Holding (K.S.C.P.) — Kuwait Projects Company Holding (KIPCO) — Investor Presentation (November 2023)
41 slides from Kuwait Projects Company Holding (K.S.C.P.)'s investor presentation, November 2023
Slide 1: November 2023
November 2023
Slide 2: 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 assess the
Slide 3: Overview
OVERVIEW
Slide 4: KIPCO overview: operating holding company
KIPCO overview: operating holding company ga KIPCO GEOGRAPHY SECTORS Banking, Insurance, and Education TRACK RECORD 31 years of profits? MERGER Asset Management, 96 total With Qurain Total assets ‘i Petrochemical, Food, “a2 tale Petrochemical Middle East and 2 s US$38.6bn? : i Media, Real Estate sha
Slide 5: Recent updates
Recent updates > dd Strategic deal between OSN+ and Anghami Transaction overview On 21 Nov 2023, KIPCO announced that OSN has signed a conditional binding agreement to combine its streaming platform OSN+ with Anghami Inc. (listed on Nasdaq) and to inject up to US$somn for a majority stake in Anghami
Slide 6: Diversified portfolio
Diversified portfolio... gaud KIPCO cross sectors NVC OF og YC > NT a \ 7 + Healthcare Logistics Petrochemical and Banking Real Estate AMIB Insuranc ‘ thoes Education & Others Oil Services Equate | TKOC EN KPPC | TKSC ~... NAPESCO | UOP ‘rosso ante #. 2 N's P aN a. y) a’. . J J Each sector's apprx.
Slide 7: Our presence by geographies & sectors
Our presence by geographies & sectors* r sectors Geography Momt. & Investment Banking i 5 —~ Kuwait c ° e e ° ° e ° ccc iKSA (=) ° ° ° ° Countries ' ~ 1UAE © o ° contribute t - d~66% of { Bahrain ) e ° e the total ; Qatar ) ° e e revenue in ' ra FY 2022 1Oman e Se <A a nO re 8 Oe Turkey () e ° Jorda
Slide 8: Quality assets - market leadership of key portfolio companies
Quality assets - market leadership of key portfolio companies b ) rN Z - . - aim #2 Ethylene glycol producer ered Conventional bank in Kuwait! globally Among top three insurers in MENA region manufacturer in Saudi® GIG & # Insurer in Kuwait?, Bahrain¢, Jordan’ & Egypt ra Gr #1 Dairy and food product
Slide 9: Controlling or significant stakes in key portfolio companies
Controlling or significant stakes in key portfolio companies \ S wee|| STO Group Effective 62% 6% 45% 41% 91% 56%! 70% 63% 59% 51% Stakes! Board goof 1 10f10 4 of 10 50f9 5of8 4of5 3 of 74 50f7 4of7 4of5 Representation Market Cap (US$mn)? 1,840 Unlisted 1,670 2,510 1,446 95 Unlisted 193 232 154 S&P;
Slide 10: Strategy
Strategy Building Businesses Maximize value from ant businesses with a Partner with global or local businesses with a proven track record tt 2 medium to long-term horizon FO} Seek = generate ; Controlling or significant sustainable, predictable stakes in operating businesses operating cash flows and
Slide 11: Investment philosophy
Investment philosophy ay Value Chain Selection ey Nae neties tia! > Focus on ‘what we » Regional » Support business » Control / strong » Medium to long gau4 know’ understanding and growth influence term horizon > Invest with access Ce ERDEEtSE » Provide strategic » Attract best talent » Flexible app
Slide 12: Track record of value creation
Track record of value creation 2 \ “om Total Assets Total Revenue AuM Total Assets THEN* } $3.1Bn (1995) $183Mn (1996) - (1998) $287Mn (1994) NOW ) $22.6Bn (Sep‘23) $732Mn' (Sep’23) $14.2Bn (Sep‘23) $2.2Bn (Sep'23) ae rn = sca Que \ sce Total Assets Total Revenue Total Revenue THEN* ) $0.4Bn (1997)
Slide 13: Supportive shareholders
Supportive shareholders ay, + 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 its
Slide 14: Performance Update
PERFORMANCE UPDATE
Slide 15: Operating performance key highlights 2022 and YTD 2023
Operating performance key highlights 2022 and YTD 2023 Burgan Bank 2 ol sp sy HURGAN BANK Stable operating income of US$751mn for FY 2022 and net profit of US$i6gmn (14.9% growth vs. 2021), supported by improving net interest margins (2.4% vs 2.1% in 2021) In Feb 2023, sold its 51.8% stake in Bank o
Slide 16: Operating performance key highlights 2022 and YTD 2023
Operating performance key highlights 2022 and YTD 2023 United Real Estate Company United Gulf Holding Company *Reported net orofit for FY 2022 included one-time | a ld = Revenue of US$274mn in 2022 (vs. US$275mn in 2021); net profit of US$11mn* in 2022 (vs. loss of US$16mn in 2021) = Completed merge
Slide 17: KIPCO consolidated financial performance
KIPCO consolidated financial performance D Revenue! US$ mn Net Profit US$ mn 3,438 82 3,027 2,334 By 1,607 38 Rcd 2021 2022 9M'22 9M'23 2021 2022 9M'22 9M'23 Total Assets? US$ bn Shareholder’s Equity? US$ mn 37.0 38.6 1,920 1,962 2022 9M'23 2022 9M'23 "Revenue for 9M 2023 and 8M 2022 may not be comp
Slide 18: Why KIPCO
WHY KIPCO
Slide 19: Why KIPCO
Why KIPCO Compelling strategy Outstanding track record Transparent Experienced management team Supportive major shareholders Market Leadership KIPCO on a path to a stronger growth \19
Slide 20: Executive management
Executive management Sheikha Dana Nasser Sabah Al Ahmad Al Sabah | Group CEO. 3€ t9. boing iebuty Group position of 68. He ic 9 Board monster of Burgan Bank snd 1 committee positions with th on Institute of 1 Sheikh Sobah Mohammed Abdulaziz AI Sebsh | Grou Chiet Joe Kawkabeni | ( itegic Projects Off
Slide 21: KIPCO group companies' management
KIPCO group companies’ management Tony Daher Group CEO Ghassan Mamiouk eo ewe butaan.com xd Burgan Bank ax Group GEG in Aprit 2023. He has over 28 years ‘ct experience Prior to joining the Bank. Ha sorvad as Deputy CEO ot Guit Bank fram 2013 to 2016 and as CEO trom 2008 ta 2023, He has also served a
Slide 22: Thank you
THANK YOU
Slide 23: Appendix
APPENDIX * GROUP COMPANIES’ PERFORMANCE * KEY MILESTONES * ESG INITIATIVES * MACRO DATA
Slide 24: Portfolio view - strengths, opportunities, risks and sensitivities
Portfolio view - strengths, opportunities, risks and sensitivities — 4 Key strengths and opportunities ¥ Competitive costs and strategic facilities Y Resilience of consumer demand ¥ Region has inherent demand for oil services Petrochemical and Oil Services v Presence in under-penetrated markets v St
Slide 25: Burgan Bank
Burgan Bank b ) Business highlights Key franchises + Kuwait based commercial bank with regional presence in five countries + 2"¢ largest conventional bank in Kuwait in terms of assets (US$22.6bn’) (Name MarketPosiion Fue see ese + BBB+ rating from S&P, Baai from Moody's, A from Fitch and A+ from Cl
Slide 26: 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 3.2mn MT), Polyethylene (PE, production capacity of umn MT) and Polyethylene Terephthalate (PET,
Slide 27: Gulf Insurance Group
Gulf Insurance Group ’ f Business highlights Key franchises + Kuwait-based insurance company with operations in life and non-life as well as “Name Market Position ETN Takaful insurance; market cap of US$1,670mn' ‘A Tassel + Presence across the MENA region in 13 countries through a network of over 85
Slide 28: 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 ~61%,
Slide 29: 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 30: United Gulf Holding Company (UGH)
United Gulf Holding Company (UGH) b b ) > Business highlights Key franchises Exchange + Activities include asset management, corporate finance advisory AMCO ‘A uke sombany tn 60% an 36 and brokerage services * Asset base of US$2.9bn' #2 conventional bank in Kuwait by assets 15% 22,618 630 #2 real es
Slide 31: Jordan Kuwait Bank (JKB)
Jordan Kuwait Bank (JKB) Business highlights Operational highlights Jordan based commercial bank with operations in Jordan, Iraq, Cyprus and Sncne|| | Teen } KIPCO Group 51% In Feb 2023, JKB completed the acquisition of 52% stake in Bank of Baghdad | - 62 Stake? ) Listed on Amman Stock Exchange with
Slide 32: 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 Segment information Oil fiel
Slide 33: JTC and ATC
JTC - Jassim Transport & Stevedoring Company 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$223mn' +
Slide 34: KARO - The Kuwait Aromatics Company
KARO - The Kuwait Aromatics Company » b Business highlights Operational highlights + Kuwait based holding company with aromatics production ) Benzene - 393,000 MT facilities through its subsidiaries - KPPC and TKSC Production + Itis involved in manufacturing of Paraxylene, Benzene and Capacity G0G S
Slide 35: OSN
OSN { f ee + General entertainment platform in MENA, operating across multiple platforms: oa =~ 7 Es q Over-the-top streaming (OTT) . . as Strategic deal between Direct-to-home (DTH), Cable fibre & Internet Protocol television (IPTV) OSN+ and Anghami Business - Large commercial setups & hotels * Pre
Slide 36: United Education Company (UEC)
United Education Company (UEC) » i ) + KIPCO Group owns 64% stake in UEC + Itowns, develops, manages and operates K-12 and higher education institutions in Kuwait + Leading schools/ colleges, imparting quality education across multiple curriculums, to the students of various nationalities + Combined
Slide 37: KIPCO business evolution - Key milestones
KIPCO business evolution - Key milestones * Small/passive investments | * First stake in foundation assets 1988 — 1997 1998 —2006 2007-2017 2018 onwards 1988: Acquisition of UGB 1994: Acquisition of stake in URC 1995: Acquisition of stake in Burgan Bank 1995: Formation of GDTH (Now SN) 1996: Acquisi
Slide 38: KIPCO - ESG focus
KIPCO - ESG focus VISION BA MISSION @} ( @ Attractive Workplace Advance the role of ESG To govern consistent, _ ; across KIPCO, operating collective value ina Positive Environmental - Z Outcomes businesses and sustainable, compliant and stakeholders. impactful manner ESG Responsible Community Engage
Slide 39: ESG at the core of our major investments
ESG at the core of our major investments f | y ol 3p y, BURGAN BANK Sustainability Report 2022 Sustainability Report 2022-23 snugAttcaiajill Aig JORDAN KUWAIT BANK. Sustainal 2022 Responsible Lending Financed projects, related to renewable energy & plantation, valued at ~$72mn 1 Bank in Kuwatt to cr
Slide 40: Kuwait fundamentals remain strong
Kuwait fundamentals remain strong... One of the highest rated sovereigns AA-/A1/A+ (Fitch/Moody’s/S&P) Supported by low fiscal break-even oil price (US$92.9 per barrel*) a Gt largest Proven oil reserve of 101.5BBL (6.5% of global reserves) Budgeted Production 2023/24 — 2.7Mn barrels per day* Real GD
Slide 41: ...as well as for the GCC, though outlook is cautious due to global developments
...as well as for the GCC, though outlook is cautious due to global developments b b > Nominal GDP (USS Bn, 2024E) Real GDP Growth (% yoy, 2024E) Gross debt (% GDP, 2024E) KSA EE 1.110 KSA 4.0 KSA J 22 UAE i 537 UAE [a 4.0 UAE Bw 29 Qatar iil 246 Qatar J 2.2 Qatar [FI] 38 Kuwait I 167 Kuwait 3.6 Kuw
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