Trans-Century Gr roup - Rich.co.ke

Trans-Century Grroup An Overview

INVESTING IN AFRICA

Contents

1. Executive Summary y 2. Power 3. Transport 4. Specialised Engineering 5. Consumer 6. Summary Financials 7. The Team

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Executive Summary Trans-Century Limited (“TCL”) is a Kenya––headquartered infrastructure group with investments across East, Central & So outhern Africa

− Operating EBITDA of circa KES 1.4 1 4 Billlion − Gross investment portfolio in excess of o KES 9 billion Industry sectors include: Power Infrastruucture - Tanelec, Kewberg, EA Cables, Cableries Du Congo; Transport Infrastru ucture - Rift Valley Railways; and Specialised Engineering - Avery

Uniqueness of TCL: − Founded by entrepreneurial Kenyan business b

Entrepreneurial

people and investors

− Focus on power infrastructure, transpport infrastructure and specialized engineering

− Operating companies led by dynamic management with extensive experience & in-depth capabilities

Infrastructure focus

Ability to execute 2

Investment considerations Strong market fundamentals : undder-penetration and inefficiencies in Power and Transport/ Cargo and Sp pecialised Engineering

Strong market positioning: In 7 coountries; including Kenya, Uganda, Tanzania Rwanda Tanzania, Rwanda, DRC DRC, Zambia and d South Africa

Leveraging L i scale l ffor execution: ti Sh h h ld ffunds hareholder d off KES 6.9 6 9 billion billi Strong management teams Impressive financial performancee: Shareholders have enjoyed 43 (forty three) times money back on their investment since 2003

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TCL’s focus going forward Trans-Century Ltd

Power

Transport

Specialised

Affiliated

Infrastructure

Infrastructure e

Engineering

Holdings

Consumer

Existing Aluminium Cables Investments:

Copper Cables

Kenya-Ugan nda railway

Transformers

Distribution & Service

Operations &

Switchgear

Maintenance

Engineering Growth:

Power Generation Transmission

Logistics

Turn-key projects EPC

Investments

Tea Banking Private equity

Historical timeline & pan-African growth

2009: TCL becomes public

2006: engagement of full full-time time management team

TCL’ss 2004: TCL initial buyout

POWER

TRANSPORT T

SPECIALISED ENGINEERING

CONSUMER

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POWER 7

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Under-penetration of electrrification is a common theme across the region r Installed capacity ( (MW) )

Installed capacity per capita (MW// 1000 people) 38.2

1,473

Electrification rate: % of population

6

16%

(Kenya) 10.7

340

5

9%

(Uganda) 919

2 6 21 21.6

4

14%

(Tanzania) 1,490

62.4

3

61%

((Ghana)) 40,498

831.8

2

70%

(South Africa) 964,754

(USA)

Source: KPLC, US EIA

3 172 9 1 3,172.9

100%

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TCL’s participation in the po ower sector

Power generation Focus area Transmission lines

3 333

Substations (step down)

333

Substation (step up) Focus area

Distribution transformers Residential/ Comm’l Use

333

Distribution lines

333

333 9

Regional utilities plans Kenya

Tanzania

Connections

Connections

In millions 2.0 1.8 1.6 1.4 1.2 1.0 0.8 06 0.6 0.4 0.2 0.0

1.9 CAGR 19%

1.1

0.8

2006

2008

2012

In millions 1.8 16 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0

CAGR 13%

Uganda

Rwanda

Connections

Connections

2012

In thousands 400.0

2014

350

350.0

CAGR 25%

300.0

Charged with growing connections , currently at 300,000 connections

1.2

0.7

2007

Umeme Ltd, a regulated distribution company with a 20yr concession

1.6

250.0 200.0 150.0 100.0

91

110

50 0 50.0 0.0 2006

Source: KPLC, Tanesco, Umeme, Ministry of Infrastructure (Rwanda)

2008

2012

10

Segmental reporting Power In millions

2010A

20 009A

% Variance

5,505

4 4,485

22.7%

368

731

-49.7%

KES

Revenues

EBIT

Strong growth in the business fundamentals, leeading to increased revenues: –Copper volumes up 9% –Aluminium l i i volumes l up 140% –Transformer volumes up 38% Impairment of working capital at subsidiary leevel impacted EBIT 11

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TRANSPORT 13

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As port volumes rose, railw way volumes continued their consistent decline d MTs millions 20

19

18 16 14

13

12 10 8 6

8 7 48 4.8

4

2.5

2.0

2

1.5

0 1980s

1990s Port Volume

Source: KPA, Kenya Railway Corporation and RVR estimates

2000

2010

RVR Volume

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The RVR opportunity Techn nical parttner America Laatina Logistica (ALL) ( ) is a leader in Brazil B People p

Funding

Railway engineers g are in the region renowned

Strong shareholders Bank lenders

Existing assets

Market demand

2,800 2 800 km k off track k ~100 locomotives g ~4,000 wagons

20 million ll MT off cargo

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Network of opportunity Strong regional presence with key relationships

POWER SOURCE PRODUCTS/ PERKINS

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Segmental reporting Specialised Engineering In millions

2010A

20 009A

% variance

KES

Revenues

EBIT

411

226

82.0%

65

22

191.9%

Growth in the Specialised Engineering Division n driven by: –Growing industrial base – Focus by authorities on stringent observance of codes and standards (weights) – Continued demand for back-up poweer

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Consumer Overview The prroducts Products include: – loose tea (Nguvu, Supreme, Premium) – tea bags (Premium and Luxury) – infusion products (Camomile, Green tea,, Hibiscus))

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Segmental reporting Consumer In millions

2010A

2 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 reegion – Successful business repositioning

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2010 Group Performance

Group reven nues 25% at Ksh 6.8 6 8 billion Group earnings befo b f re interest & taxes (EBIT) 22% 2 at Ksh 974 4 million Group net inccome 99% at Ksh 468 8 million 23

Summary Financial Stateme ents Income statement Ksh in thousands Turnover

GROUP 2010

GROUP 2009

6,794,650

5,414,887

1,415,828

1,105,627

Results from operating activities

974,271

796,069

Profit before income tax

630,585

526,625

Profit after income tax

468,262

234,497

Equity holders of the company Non-controlling interest

343,713 124,549

91,903 142,594

Profit for the year

468,262

234,497

Profit P fit before b f depreciation, d i ti impairment and finance cost

Profit after tax is attributable to:

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Summary Financial Stateme ents Balance sheet COMPANY 2010 KShs'000

COMPANY 2009 KShs'000

GROUP 2010 KShs'000

GROUP 2009 KShs'000

9,040,291 392,374

7,878,499 556,398

7,141,777 4,094,701

5,039,372 3,693,959

Total Assets

9,432,665

8,434,897

11,236,478

8,733,331

EQUITY AND LIABILITIES Share capital Sh Share premium i Reserves Equity attributable to equity holders Non-controlling interest

133,519 106 684 106,684 6,692,676 6,932,879 -

131,462 106 684 106,684 5,581,918 5,820,064 -

133,519 106 684 106,684 3,711,277 3,951,480 1,341,974

131,462 106 684 106,684 2,397,928 2,636,074 881,771

6,932,879 2,166,657

5,820,064 1,952,622

5,293,454 3,371,518

3,517,845 3,168,545

333,129

662,211

2,571,506

2,046,941

9 432 665 9,432,665

8 434 897 8,434,897

11 236 478 11,236,478

8 733 331 8,733,331

Ksh in thousands ASSETS Non current assets Current assets

Total Equity Non current liabilities Current liabilities Total equity and liabilities

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TCL’s Strong Track Record TCL Group Revenues

Value creation¹

8 000 8,000

10

50x

9

43 x45x

Group revenues in billions

6.8 CAGR 25%

6,000

5.5 5,000

Shareho older funds in billio ons

8 7,000

40x 6.9

7

35x

6

30x

5

25x

4

20x

3

15x

2

10x

1

5x 0.1

0

4,000

2009A

2010A

0x

1x

2003

No o. of Investments:

0

2010

1

5

6

8

9

10

10

The group has seen remarkable growth in rev venues, driven by organic growth in portfolio company revenue as well as new acquisitions p spent p aimed at tripling p g TCL is investingg in the future with circa USSD 20 mm of capex capacity across core cables and transformer businesses b Note: ¹Times Money Back calculation assumes investment of TCL Hold Co’s 20 003 shareholder capital

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Company Board of Directorrs B d off directors (8) Board

P t K Peter Kanyago

Founder East Africa Courier CPA (K), MBA, industrial management

– Directorship: Ecobank (chair) Fedex, Otis, KTDA

Njeru Kirira

Tax and fiscal policy administrator Served various capacities in G t T Govt. Treasury

– Directorship: Inoorero University

Z h i h Mbugua, Zephaniah M Mb Ch Chair i

30 3 years of eentrepreneurship ex experience (industrial ch i l ) chemicals)

– Directorship: EAC E (chair), P&A (EA), Abcon Group, Zeniki Z Investments

Robin K Kimotho

Business B advisory & Consultancy regionally C ( (Eastern & Southern A i ) Af Africa)

– Directorship: Polaris P International (K), Sigona Gollf Club

Carol Musyoka

Extensive experience in banking & corporate fi finance

N Ngugi i Kiuna Ki

Vast senior multinational management experience

– Directorship: UBA bank (Chair), Cooper Ke, Cannon Assn, X&R Tech

Joseph Karago

Large-scale architectural development Urban infrastructure d l development t

– Directorship: Kenya Children’s Home, Karago & Associates, Mcensal Ltd

Dr. Gachao Kiuna

Corporate finance & strategy gy consulting g (McKinsey)

– Directorship: Enablis (EA), Institute for Economic Affairs

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Experienced Management team t Dr. Gachao Kiuna Yida Kemoli Group Head of Corporate finance & Strategy Capital markets investment banking (JPMorgan), Africa PE experience (Actis) MEng in Chemical Engineering

Allan Munyua Division Principal, Power & Specialised Engineering Business procurement, Financial management advisory Masters in settlement & infrastructure development, Bachelors of Architecture

Ng’ang’a Njiinu

Chi f Executive Chief E i Officer O Offi Corpporate finance & strattegy consulting (McK Kinsey) PhD Biotechnology, Biotechnology BSc Biocchemistry

Wambua Kimeu Group Head of Finance

Audit & Advisory (PwC) Certified Public Accountant (Kenya) Bcom finance

Mumo Muth hengi Division Managerr, Consumer and In nvestor Relations Invesstment banking (Deuttsche Bank) and priva ate equity experience MBA (Harvard Business Schoo ol), BBA finance

Kibiru Mutthaka

Geoffrey Njue Group Internal Auditor

Group audit experience at Nestle and Industrial Promotion Services CPA (Kenya) BSc in Civil Engineering

Janet Wanjiku

Division Manager, Business Analyst Management & Financial Specialised Engineering Accountant Audit (Kenya Women Bachelor of Science degree Financial analysis, planning & strategy Chartered Financial Analyst Analyst, MBA finance & investment management

in Fin nance from Towson Univeersity, ersity Maryland USA. USA level 3 candidate for the CFA designation d

Finance Trust) Certified Public Accountant (Kenya) Bcom finance 29

Contact Us

www.transceentury.co.ke y

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