padico holding
DESCRIPTION
PADICO Holding. Investors’ Presentation 1Q2010. PADICO Financial Statements. Consolidated Income Statement Summary. Net profits decreased by 17% in 1Q2010 compared to 1Q2009: Absence of non-recurring items amounting to USD 6 million when compared to 1Q 2009 - PowerPoint PPT PresentationTRANSCRIPT
PADICO HoldingInvestors’ Presentation 1Q2010
PADICO Financial Statements
Consolidated Income Statement Summary
(Amounts in USD thousand) 1Q2009
1Q201
0
%
Operating Revenue 6,085 10,166
67%
Profits from Associates 8,305 10,205
23%
Revenue (Loss) from investment portfolios
(339) 1,007
397%
Revenues from Consolidation 6,145 - -
Other 1,571 832 (47)%
Total Revenues 21,767
22,210
2%
Operating Expenses 3,679 5,337
45%
Admin. Expenses 3,603 4,348
21%
Total Expenses 8,883
11,301
27%
Net Profit 12,851
10,657
(17)%
Net profits decreased by 17% in 1Q2010 compared to 1Q2009:
• Absence of non-recurring items amounting to USD 6 million when compared to 1Q 2009
• Operating revenues increased by 67%
• Profits from associates increased by 23%
• Net Pro forma income increased by 59% in 1Q2010 compared to 1Q2009
Revenues & Net Profit
Net ProfitRevenue Sources
Amounts in USD thousand
Amounts is USD thousand
Consolidated Balance Sheet Summary
(Amounts in USD thousand)
2009 1Q
2010 %
Cash at banks 20,862 12,714 (39)%
Current assets 79,475 86,949 9%
Total assets 620,197 622,977 0.4%
Current liabilities
83,430 73,824 (12)%
Total liabilities 190,492 178,786 (6)%
Total equity 429,705 444,191 3%
Outstanding shares
250,000 250,000 -
455,699530,028
620,197 622,977
2007 2008 2009 1Q2010
Amou
nts i
n U
SD th
ousa
nd
CAGR = 7%
Total Assets
Total Liabilities decreased by 6% due to:
• A decrease in Loans and credit facilitation from USD 165.8 million in 2009 to USD 150.2 million in 1Q 2010
Profitability RatiosA
mou
nts
in U
SD
EPS ROA & ROE
G= (20)%
Capital Structure
39% 34% 39% 34%
222%
123%
95%
118%
2007 2008 2009 1Q 2010
Debt/Equity Current Ratio
Debt Ratios
Stock PerformanceU
SD
Stock Ratios
2007 2008 2009 1Q
2010
Closing Share Price (USD)
2.23 1.21 1.19 1.31
BV/ Share (USD)
1.33 1.38 1.47 1.5
EPS (USD) 0.14 0.09 0.17 0.04
P/E (x) 15.93 13.44 7.0 8.18
P/BV (x) 1.68 0.87 0.82 0.87
Market Capitalization (USD Million)
558 303 298 3280
0.5
1
1.5
2
2.5
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
2007 2008 2009 1Q 2010 A
Clo
sing
Pri
ce, U
SD
Tim
es
P/BV P/E Price
Multiples
Subsidiaries Performance
PPC Main Indicators
Income Statement
(Amounts in JOD thousand)
1Q2009
1Q201
0
%
Sales 2,754 3,932
43%
Gross Profit 618 1,486
141%
Operating Profit 442 1,106
150%
Net Income 366 1,208
230%
Balance Sheet
(Amounts in JOD thousand) 20091Q 201
0%
Total Assets 14,845
24,376
64%
Total Liabilities 3,229 7,151
122%
Total Equity 11,615
17,225
48%
Amounts in JOD thousand
Revenues and Net Profit
PRICO Main Indicators
Income Statement
(Amounts in JOD thousand)
1Q2009
1Q201
0
%
Operating Revenues 446 2,321
420%
Gross Profit 236 1,261
434%
Operating Profit (154) 774 603%
Net Income 158 413 161%
Balance Sheet
(Amounts in JOD thousand) 20091Q 201
0%
Total Assets 75,529
87,594
16%
Total Liabilities 12,624
24,128
91%
Total Equity 62,913
63,466
0.9%
Revenues and Net Profit
Amounts in JOD thousand
PSE Main Indicators
Income Statement
(Amounts in USD thousand)
1Q2009
1Q2010
%
Operating Revenues 900 706 (22)%
Operating Profit 253 (75) (130)%
Net Income 467 (80) (117)%
Balance Sheet
(Amounts in USD thousand) 20091Q
2010 %
Total Assets 12,663
13,023
3%
Total Liabilities 1,671 1,151 (31)%
Total Equity 10,992
11,872
8%
Revenues and Net Profit
Amounts in USD thousand
NCI Main Indicators
Income Statement
(Amounts in JOD thousand)
1Q2009
1Q2010
%
Sales 576 712 24%
Gross Profit 30 115 289%
Net Income (37) 66 276%
Balance Sheet
(Amounts in JOD thousand) 20091Q
2010 %
Total Assets 4,181 4,272 2%
Total Liabilities 541 559 3%
Total Equity 3,641 3,713 2%
Revenues and Net Profit
Amounts in JOD thousand
PALTEL Main Indicators
Income Statement
(Amounts in JOD thousand)
1Q2009
1Q2010
%
Revenues 72,992
80,157
10%
Gross Profit 55,868
59,501
7%
Operating Profit 23,303
26,679
15%
Net Income 19,176
23,159
21%
Balance Sheet
(Amounts in JOD thousand) 20091Q
2010 %
Total Assets 531,270
545,762
3%
Total Liabilities 180,085
217,241
21%
Total Equity 351,185
328,521
(7)%
Revenues and Net Profit
Amounts in JOD thousand
Future Plans 2010-2013
Where is PADICO heading in the future?
Real Estate Restructuring Plan
Merging and acquiring 16 companies into one holding company.The value of the transaction is USD 95 millionPADICO to own a controlling stake in the new holding.
Phase one has been completed relating to the due diligence of the related companies in addition to the valuations.
Restructuring of current separate entities is being finalized, in terms of loans repayment and capital reductions.
Business plan is being finalized for the new holding
StatusSynergiesRationale
Cost synergies:
Integration in HR, IT and operations practices; especially in terms of purchases and usage of equipment.
Revenue synergies:
Market and client business integration:
Consolidate PADICO activities in the real estate into one structure
Establish a strong and a leading company in Palestine
The new holding to concentrate on real estate development, management and contracting
Transaction Summary
Manufacturing Sector Restructuring Plan
Consolidating 6 companies into one holding company.The value of the transaction is USD 9.7 millionPADICO owns a controlling stake in the holding (PIIC).
The holding has acquired most related companies in PADICO Portfolio
The holding to finalize an internal restructuring and add a strong marketing department
StatusSynergiesRationale
Cost synergies:
Integration in HR, IT and operations practices, especially in terms of acquiring raw materials.
Revenue synergies:
Market, client business integration especially in terms of effective distribution.
Consolidate PADICO activities in the manufacturing sector into one structure
Establish a strong and a leading company in Palestine
The new holding to invest in Oil production, carton, plastics and packaging industry, in addition to Poultry.
Transaction Summary
PSE Restructuring Plan
Transforming the PSE from a private shareholding company to a public shareholding company
Separate the depository and clearance centre from the trading activities
PADICO to reduce its holdings in the PSE from 76% to around 50%
The Government approved the transformation
In the process of marketing the PSE to a strategic investor
An International expert brought by the PCMA will examine the separation procedures this May.
StatusRationale
Corporate governance implementation
Attract strategic international investors into the PSE.
Transaction Summary
Power Generation
There is only one Power Generation Plant in Palestine based in the Gaza Strip and provides only 30% of the electricity needs there.
In the West Bank, Palestinians import around 2 million MWh/ year from Israel to match the demand.
Electricity tariffs are higher than neighboring countries by around 30%.
Sec
tor
Ove
rvie
w
PADICO will establish a power generation station located in Northern West Bank, with a total capacity of 400 MWh.
The estimated cost will be USD 300 million, USD 120 million will be financed through equity, while the USD 180 million will be debt.
The plant is expected to start operations by end 2014.
PA
DIC
O
Inve
stm
ent
Solid WasteS
ecto
r O
verv
iew
1.4 million tones of municipal waste is generated every year in the West Bank and Gaza Strip
The average growth in waste generation is estimated at 4% per year, depending on population growth, economic growth and the extent to which people adopt consumer and disposable lifestyles.
PADICO established the first recycling company in Palestine (including the composting) “ The Palestinian Recycling Company”.
The new company's first pilot projects will be building, managing , and operating a recycling facility in Nablus with a total cost of USD 2 million, to start operations Sep. 2010
PA
DIC
O
Inve
stm
ent
Waste WaterS
ecto
r O
verv
iew The average quantity of wastewater in Palestine is over
100 mcm per year More than 75% of the waste water go into the ground 80% of the collected wastewater can be retreated and
utilized for irrigation.
PADICO will be the first private company to enter the water sector in Palestine.
A new company will be established owned by PRC and a regional investor
An MOU has been signed with Jenin Municipality to upgrade the wastewater treatment plant.
The project estimated cost is around USD 1- 2 million, and will start operations beginning of 2011.P
AD
ICO
Inv
estm
ent
AgricultureS
ecto
r O
verv
iew The average local demand of the Madgool is estimated
around 2,700 ton
The average local supply of the Madgool is estimated around 270 ton, excluding the settlements supply.
PADICO will be planting 3,000 dunums at 3 stages.
The First stage will be planting 400 dunums with around 5,000 palm trees.
A new company will be established with a total capital of USD 10 million, and PADICO and its subsidiaries to own around 51%.P
AD
ICO
Inv
estm
ent
Contact Information
PADICO Holding
Ramallah- Palestine
Tel: + 970 2 240 3336
Fax: + 970 2 240 3363
P.O.Box: 1708 Ramallah- Palestine
Email: [email protected]