C&i Leasing Plc · NSENG:CILEASING
C&i Leasing — H1 2020 Earnings Presentation
25 slides from C&i Leasing's earnings presentation, Aug 19, 2020
Slide 1: H1 2020 Results & Outlook for H2 2020
C & I LEASING PLC H1 2020 Results & Outlook for H2 2020 19 August 2020 1 www. c -il eas in g .com info@c - ileas ing . com
Slide 2: Disclaimer
Disclaimer This presentation is based on C&I Leasing Plc’s unaudited results for the period ending 30 June 2019. C&I Leasing Plc has obtained some information in this presentation from sources it believes to be reliable. Although C&I Leasing Plc has taken all reasonable care to ensure that the infor
Slide 3: Outline
Outline 1 Introduction – About C&I Leasing Group & H1 2020 Financial Snapshot 4 2 Group Financial Performance Review 13 3 Strategy & Outlook 22 44 Appendix 24 5 5 3 www. c -il eas in g .com info@c - ileas ing . com
Slide 4: Introduction – About C&I Leasing Group & H1 2020 Financial Snapshot
Introduction – About C&I Leasing Group & H1 2020 Financial Snapshot Andrew Otike-Odibi, MD/CEO 4 www. c -il eas in g .com info@c - ileas ing . com
Slide 5: Overview of the C&I Leasing Group Structure
Overview of the C&I Leasing Group Structure Company C&I Leasing Group Parent • C & I Leasing was incorporated in 1990 and it was listed on the NSE in 1997 • The fleet management business in Nigeria reflects consolidated accounts of (% owned) fleet management, financial services and C&I motors which
Slide 6: Breakdown of Business Segment for C&I Leasing Plc (Company)
Breakdown of Business Segment for C&I Leasing Plc (Company) Personnel Personnel Fleet Marine Marine Citracks* Outsourcing Outsourcing Management Leading Nigerian Content Human resource solutions Providing Car rental services A Nigeria Communications player in the offshore marine (personnel managemen
Slide 7: Overview of EPIC FZE (UAE) and Leasafric (Ghana)
Overview of EPIC FZE (UAE) and Leasafric (Ghana) Epic FZE Leasafric Marine Fleet Management EPIC trades in ships and boats, its parts, components and Leasafric currently has a fleet size of 800 vehicles with a automobile. It is incorporated as a free zone wide network of clients across the Oil and G
Slide 8: Snapshot of some key vessels
Snapshot of some key vessels. Mv Chidiebube & Mv Folashade Mv Adina on long-term contract. on over 10 years Contract N6.0bn N6.0bn N3.9bn N6.2bn MV Bello on a long-term contract 8
Slide 9: H1 2020 Key Result Highlights
H1 2020 Key Result Highlights • Gross earnings of N15.3 billion, down by 5.9% y-o-y (H1 2019: N16.3 billion) his is on the back of the COVID- 19 and slide in oil price as most clients are requesting price reduction in services provided by the Company, especially the International Oil & Gas Companies
Slide 10: Diversified and High-quality Client Base
C&I Leasing – Diversified and High-quality Client Base H1 2020 revenue split by sector 1% 0% 3% 1% 4% 11% 9% 56% 15% OIL & GAS FIN SERVICES MANUFACT. TELECOM POWER CONSTR. /ENGR HEALTH AGRO ALLIED OTHERS 10 www. c -il eas in g .com info@c - ileas ing . com
Slide 11: A solid investment proposition focused on long-term growth
A solid investment proposition focused on long-term growth High quality Strong and stable Strong competitive Good security borrower management team positioning across structure all segments Transparent structure of Able to achieve lower Allows the Group to Long-term revenue flow from lease weighted
Slide 12: Group Financial Performance Review
Group Financial Performance Review Alex Mbakogu, ED/CFO 12 www. c -il eas in g .com info@c - ileas ing . com
Slide 13: H1 2020 key performance indicators
H1 2020 key performance indicators Gross Earnings Total Assets N15.3 billion 5.9% 5.9% N59.5 billion H1 2019: N16.3 billion FY 2019 N57.5 billion Cost to Income Ratio Total Debt 42.8% 930bps N36.9 billion 0.27% H1 2019: 52.1% FY 2019: N37.0 billion EBITDA margin Shareholder’s Funds 34.6% 160bps N14.
Slide 14: Income statement snapshot (Group)
Income statement snapshot (Group) Income Statement Highlights H1 2020 (N mn) H1 2019 (N mn) %Δ Gross Earnings 15,295 16,256 5.9% Lease Rental Income 9,429 11,477 17.8% Outsourcing Income 5,013 3,958 26.7% (4,241) (5,496) 22.8% Lease Rental Expense Indirect Operating Expenses* (2,648) (3,708) 28.6% N
Slide 15: Improving performance despite the challenging operating environment
Improving performance despite the challenging operating environment • Gross earnings went down by 5.9% y-o-y. Lease rental income makes up 61.80% Gross Earnings (N, billions) despite decline in its growth, however gross earnings was driven mostly by 20.0 5.9% Personnel outsourcing earnings with Y-o-
Slide 16: Impact of Capital Injection in the Business
Impact of Capital Injection in the Business • Gross earnings over the years have seen a steady 2016(N’mn) 2017(N’mn) 2018(N’mn) 2019(N’mn) 2020 H1(N’ mn) growth with a CAGR of 17.6% from 2016 – 2019. Despite the pandemic effect in 2020, the H1 2020 is at N15.3b and as the economy opens, we hope Gros
Slide 17: Balance sheet snapshot
Balance sheet snapshot Balance Sheet Highlights 30 June 2020 (N bn) 31 December 2019 (N bn) %Δ Total Assets 59.5 56.2 5.9% Operating Lease Assets 30.3 30.6 1.0% Shareholder’s Funds 14.8 11.8 25.4% 36.9 0.3% Interest Bearing Liabilities 37.0 3.0x 70bps Net Interest Bearing Liabilities / EBITDA 3.3x 2
Slide 18: Balance sheet growth in line with business expansion
Balance sheet growth in line with business expansion Total Assets (N, billions) • Total assets was largely driven by growth in cash and balances with 60.0 banks due to proceeds from rights issue. operating lease asset, 5.9% other assets and cash & balances with the bank. 59.0 60 60 • Growth in share
Slide 19: Well-diversified and stable funding base
Well-diversified and stable funding base Interest Bearing Liabilities Maturity Profile (N, billions)* • A substantial portion of the Company's assets are funded by borrowings. These borrowings are widely diversified by type and 25 maturity and represent a stable source of funds. The company will be
Slide 20: Strategy & Outlook
Strategy & Outlook Andrew Otike-Odibi, MD/CEO 20 www. c -il eas in g .com info@c - ileas ing . com
Slide 21: Strategy Update
Strategy Update Improve on cost optimisation initiatives complemented by new supply chain initiative. EFFICIENCY C O S T Achieve operating expense growth rate below inflation rate Seek opportunities for growth to improve visibility to customers and potential business partners Digitise operations & c
Slide 22: Appendix
Appendix 22
Slide 23: Statement of Financial Position
Group Company 30 June 31 December 30 June 31 December 2020 2019 2020 2019 N'000 N'000 N'000 N'000 23 Assets Cash and balances with banks 4,655,883 2,034,641 3,570,428 493,692 Loans and receivables 671,702 575,293 649,326 562,352 Trade & other receivables 15,564,945 15,803,050 13,310,854 13,544,390 D
Slide 24: Statement of Profit or Loss
Group Company 6 Months to June 6 Months to June 6 Months to 6 Months to June 2020 2019 June 2020 2019 N'000 N'000 N'000 N'000 24 Gross earnings 15,295,283 16,255,713 11,460,920 12,466,543 Continuing Operations Lease rental income 9,429,400 11,477,492 5,827,627 7,919,147 Direct leasing expenses (4,24
Slide 25: Contact
Contact Andrew Otike-Odibi Alex Mbakogu M.D/Chief Executive Officer E.D/Chief Financial Officer T: +234 803 407 0554 T: +234 903 777 5833 E: [email protected] E: [email protected] 25 www. c -il eas in g .com info@c - ileas ing . com