Trans-Century Group tury Group An Overview �������������������
Contents 1. Executive Summary 2. Power 3. Transport 4. Specialised Engineering 5. Consumer 6. Summary Financials 7. The Team 1
Executive Summary � Trans-Century Limited (“TCL”) is a Kenya– –headquartered infrastructure group with investments across East, Central & South al & Southern Africa − Operating EBITDA of circa KES 1.4 Billion 1.4 Billion − Gross investment portfolio in excess of K xcess of KES 9 billion � Industry sectors include: Power Infrastruct tructure - Tanelec, Kewberg, EA Cables, Cableries Du Congo; Transport Infrastructu tructure - Rift Valley Railways; and Specialised Engineering - Avery � Uniqueness of TCL: � − Founded by entrepreneurial Kenyan bus enyan business Entrepreneurial people and investors � − Focus on power infrastructure, transport Infrastructure transport infrastructure focus and specialized engineering − Operating companies led by dynamic man namic management � Ability to execute with extensive experience & in-depth cap depth capabilities 2
Investment considerations � Strong market fundamentals : under under-penetration and inefficiencies in Power and Transport/ Cargo and Specia and Specialised Engineering � Strong market positioning: In 7 count In 7 countries; including Kenya, Uganda, Tanzania, Rwanda, DRC, Zambia and Sou ia and South Africa � Leveraging scale for execution: Share � Leveraging scale for execution: Share Shareholder funds of KES 6.9 billion Shareholder funds of KES 6.9 billion � Strong management teams � Impressive financial performance: nce: Shareholders have enjoyed 43 (forty three) times money back on their inve their investment since 2003 3
Historical timeline & pan-Afri African growth 2009: TCL becomes 2006: engagement public of full-time management team 2004: TCL’s 2004: TCL’s initial buyout SPECIALISED TRA TRANSPORT ENGINEERING CONSUMER POWER 4
TCL’s focus going forward Trans-Century Ltd Transport Specialised Power Affiliated Infrastructure ure Engineering Infrastructure Holdings Consumer Investments � Aluminium Cables � Distribution & Existing � Kenya-Uganda � Tea anda Investments: � Copper Cables � Banking Service railway � Transformers � Operations & � Private equity � Switchgear Maintenance � Engineering � Power Generation � Logistics Growth: � Turn-key projects � Transmission � EPC
Contents 1. Executive Summary 2. Power 3. Transport 4. Specialised Engineering 5. Consumer 6. Summary Financials 7. The Team 6
����� 7 7
Under-penetration of electrifi ctrification is a common theme across the reg e region Installed capacity Installed capacity per capita Installe Electrification rate: (MW) (MW/ 1000 people) (MW/ 1 % of population 6 38.2 25% 1,473 (Kenya) 5 10 10.7 9% 340 (Uganda) 919 4 14% 21.6 (Tanzania) (Tanzania) 1,490 62.4 3 61% (Ghana) 40,498 2 831.8 70% (South Africa) 964,754 1 3,172.9 100% (USA) �������������������� 8
TCL’s participation in the pow power sector Power generation ���������� Transmission lines Substations (step down) ��� ��� ��� ��� ��� ��� ��� ��� ��� � � � � ��� ��� ��� ��� � ��� ��� ��� � � � Substation (step up) ���������� Distribution transformers ��� ��� ��� ��� Distribution lines Residential/ ��� ��� ��� ��� Comm’l Use ��� ��� ��� ��� 9
Regional utilities plans Kenya Tanzania Connections Connections In millions In millions 1.9 2.0 1.8 1.6 1.8 CAGR 1.6 1.6 CAGR 13% 1.4 1.4 19% 1.2 1.2 1.1 1.2 1.0 1.0 0.8 0.8 0.8 0.7 0.6 0.6 0.4 0.4 0.2 0.2 0.0 0.0 2006 2008 2012 2007 2007 2012 2012 2014 2014 Uganda Rwanda Connections Connections � Umeme Ltd, a regulated distribution In thousands 400.0 350 company with a 20yr concession 350.0 CAGR 300.0 25% 250.0 � Charged with growing connections , 200.0 currently at 300,000 connections 150.0 110 91 100.0 50.0 0.0 2006 2008 2012 ����������������������������������������������������������� ���������� 10
Segmental reporting Power In millions 2010A 2009 2009A % Variance KES Revenues 5,505 4,485 4,485 22.7% EBIT 368 731 -49.7% � Strong growth in the business fundamentals, leadi tals, leading to increased revenues: – Copper volumes up 9% – Aluminium volumes up 140% – Transformer volumes up 38% � Impairment of working capital at subsidiary level iary level impacted EBIT 11
Contents 1. Executive Summary 2. Power 3. Transport 4. Specialised Engineering 5. Consumer 6. Summary Financials 7. The Team 12
��������� 13 13
As port volumes rose, railway ilway volumes continued their consistent dec nt decline MTs millions 20 19 18 16 14 13 12 10 8 8 7 6 4.8 4 2.5 2.0 1.5 2 0 1980s 1990s 2000 2010 Port Volume Port Volume RVR Volume RVR Volume 14 ����������������������!�������"�������������#�����������
The RVR opportunity Technic chnical partne artner America Latin rica Latina Logistica (ALL istica (ALL) is a leader in Braz er in Brazil People Funding Railway engineers � Strong shareholders in the region are in the region are � Bank lenders � Bank lenders renowned Existing Market assets demand � 2,800 km of track � 20 million MT of � ~100 locomotives cargo � ~4,000 wagons 15
Contents 1. Executive Summary 2. Power 3. Transport 4. Specialised Engineering 5. Consumer 6. Summary Financials 7. The Team 16
Network of opportunity � Strong regional presence with key re ith key relationships POWER SOURCE PRODUCTS/ PERKINS 17
Segmental reporting Specialised Engineering In millions 2010A 2009 2009A % variance KES Revenues 411 226 82.0% EBIT 65 22 191.9% � Growth in the Specialised Engineering Division dr ivision driven by: –Growing industrial base – Focus by authorities on stringent observ ent observance of codes and standards (weights) – Continued demand for back-up power p power 18
Contents 1. Executive Summary 2. Power 3. Transport 4. Specialised Engineering 5. Consumer 6. Summary Financials 7. The Team 19
Consumer Overview The prod products � Products include: – loose tea (Nguvu, Supreme, Premium) –tea bags (Premium and Luxury) –infusion products (Camomile, Green tea, Hibiscus) 20
Segmental reporting Consumer In millions 2010A 200 2009A % variance KES Revenues 915 714 28.1% EBIT 114 33 249.2% � Tea volumes up 13% driven by: – Growing demand for tea in the regio the region – Successful business repositioning itioning 21
Contents 1. Executive Summary 2. Power 3. Transport 4. Specialised Engineering 5. Consumer 6. Summary Financials 7. The Team 22
2010 Group Performance revenues 25% Group revenues at Ksh 6.8 bil 6.8 billion Group earnings before in s before interest & taxes (EBIT) 22% (EBIT) 22% 22% 22% at Ksh 974 mi 974 million net income 99% Group net income at Ksh 468 mi 468 million 23
Summary Financial Statements ments Income statement GROUP GROUP Ksh in thousands 2010 2009 Turnover 6,794,650 5,414,887 Profit before depreciation, 1,415,828 1,105,627 impairment and finance cost Results from operating activities 974,271 796,069 Profit before income tax 630,585 526,625 Profit after income tax 468,262 234,497 Profit after tax is attributable to: Equity holders of the company 343,713 91,903 Non-controlling interest 124,549 142,594 468,262 234,497 Profit for the year 24
Summary Financial Statements ments Balance sheet COMPANY COMPANY GROUP GROUP Ksh in thousands 2010 2009 2010 2009 KShs'000 KShs'000 KShs'000 KShs'000 ASSETS Non current assets 9,040,291 7,878,499 7,141,777 5,039,372 Current assets 392,374 556,398 4,094,701 3,693,959 Total Assets 9,432,665 8,434,897 11,236,478 8,733,331 EQUITY AND LIABILITIES Share capital 133,519 131,462 133,519 131,462 Share premium Share premium 106,684 106,684 106,684 106,684 106,684 106,684 106,684 106,684 Reserves 6,692,676 5,581,918 3,711,277 2,397,928 Equity attributable to equity holders 6,932,879 5,820,064 3,951,480 2,636,074 Non-controlling interest - - 1,341,974 881,771 Total Equity 6,932,879 5,820,064 5,293,454 3,517,845 Non current liabilities 2,166,657 1,952,622 3,371,518 3,168,545 Current liabilities 333,129 662,211 2,571,506 2,046,941 Total equity and liabilities 9,432,665 8,434,897 11,236,478 8,733,331 25
Recommend
More recommend
