National Central Cooling Company PJSC

(DFM:TABREED)

H1 2018
Earnings Presentation
2 August 2018
Disclaimer
• These materials have been prepared by and are the sole responsibility of the • No person is authorized to give any information or to make any representation
National Central Cooling Company PJSC, ‘Tabreed’ (the “Company”). These not contained in and not consistent with these materials and, if given or made,
materials have been prepared solely for your information and for use at the such information or representation must not be relied upon as having been
call/presentation to be made on 2 August, 2018. By attending the meeting/call authorized by or on behalf of the Company
where this presentation is made, or by reading the presentation slides, you
agree to be bound by the following limitations • These materials are not intended for publication or distribution to, or use by
any person or entity in any jurisdiction or country where such distribution or
• These materials are confidential and may not be further distributed or passed use would be contrary to local law or regulation. The securities discussed in
on to any other person or published or reproduced, in whole or in part, by any this presentation have not been and will not be registered under the U.S.
medium or in any form for any purpose. The distribution of these materials in Securities Act of 1933, as amended (the Securities Act) and may not be offered
other jurisdictions may be restricted by law, and persons into whose possession or sold except under an exemption from, or transaction not subject to, the
this presentation comes should inform themselves about, and observe, any registration requirements of the Securities Act. In particular, these materials
such restrictions are not intended for publication or distribution, except to certain persons in
offshore transactions outside the United States in reliance on Regulation S
• These materials are for information purposes only and do not constitute a under the Securities Act
prospectus, offering memorandum or offering circular or an offer to sell any
securities and are not intended to provide the basis for any credit or any third • These materials contain information regarding the past performance of the
party evaluation of any securities or any offering of them and should not be Company and its subsidiaries. Such performance may not be representative of
considered as a recommendation that any investor should subscribe for or the entire performance of the Company and its subsidiaries. Past performance
purchase any securities. The information contained herein has not been is neither a guide to future returns nor to the future performance of the
verified by the Company, its advisers or any other person and is subject to Company and its subsidiaries
change without notice and past performance is not indicative of future results.
The Company is under no obligation to update or keep current the information • These materials contain, or may be deemed to contain, forward-looking
contained herein statements. By their nature, forward- looking statements involve risks and
uncertainties because they relate to events and depend on circumstances that
• No person shall have any right of action (except in case of fraud) against the may or may not occur in the future. The future results of the Company may
Company or any other person in relation to the accuracy or completeness of vary from the results expressed in, or implied by, the following forward looking
the information contained herein. Whilst the Company has taken all reasonable statements, possibly to a material degree. Any investment in securities is
steps to ensure the accuracy of all information, the Company cannot accept subject to various risks, such risks should be carefully considered by
liability for any inaccuracies or omissions. All the information is provided on an prospective investors before they make any investment decisions. The directors
“as is” basis and without warranties, representations or conditions of any kind, disclaim any obligation to update their view of such risks and uncertainties or
either express or implied, and as such warranties, representation and to publicly announce the result of any revision to the forward-looking
conditions are hereby excluded to the maximum extent permitted by law statements made herein, except where it would be required to do so under
applicable law
• The merits or suitability of any securities to any investor's particular situation
should be independently determined by such investor. Any such determination
should involve inter alia, an assessment of the legal, tax, accounting,
regulatory, financial, credit and other related aspects of any securities

NATIONAL CENTRAL COOLING COMPANY PJSC 2

Agenda

1. Introduction and Performance Highlights

2. Financial Results

3. Conclusion

NATIONAL CENTRAL COOLING COMPANY PJSC 3

1. Introduction and Performance
Highlights
Performance Highlights
Financial Highlights: H1 2018 vs. H1 2017

Total Revenue Chilled Water EBITDA Net Income

AED 651m AED 617m AED 326m AED 212m

+1.8% +2.5% +5.9% +10.0%

Operational Highlights and Developments

• Chilled Water revenue growth at 2.5%; Chilled Water EBITDA up 6.3%

Performance
Highlights

• Tabreed EBITDA increased by 5.9% to AED 326m and EBITDA margins increased from 48% to 50%
• Previously announced capacity guidance to add 65,000 RT over 2018 and 2019
• Over 20,000 RT added in Q2 2018 across the GCC
Developments

• IDB Infrastructure Fund II acquires a significant stake of Saudi Tabreed during Q2 2018
Other

• Tabreed’s holding in Saudi Tabreed decreased from 25% to 20%

• In Q1 2018, Tabreed acquired the remaining 50% stake in S&T from Aldar Properties

Continued strong revenues and profitability

NATIONAL CENTRAL COOLING COMPANY PJSC 5

Regional Presence
The only publicly listed district cooling company in the world

National Central Cooling Company and its UAE investments

• 5 GCC countries | 72 plants | Over 1.1m tons of cooling
• 60 consolidated plants, 3 held through associates and joint ventures
• Plants in 6 emirates of the UAE - Abu Dhabi, Dubai, Ajman, RAK, Sharjah and Fujairah
• Uniform utility infrastructure model implemented across GCC
• 773k RT delivered to clients including some of UAE’s most prominent landmarks
Landmark Projects: Dubai Metro, Dubai Parks and Resorts, Sheikh Zayed Grand
• Long term contracts underpinning stability of earnings and Mosque, Yas Island, Al Maryah Island
returns for shareholders
Qatar District Cooling Company (Tabreed 44%)
• Joint Venture with United Development Company
• Owns and operates the world’s largest DC plant on The Pearl with connected capacity
of 112k RT
Bahrain • Also owns and operates 2 DC plants and a concession in Qatar’s West Bay (102k RT)
26k RT
Diplomatic Area – 1 Landmark Projects: The Pearl – Qatar, West Bay
Qatar
Saudi Tabreed District Cooling Company (Tabreed 20%)
214k RT
West Bay – 2 • Partnership with ACWA Holding and others
Pearl – 1 • Owns and operates first significant DC plant in KSA – Saudi Aramco (32k RT)
UAE • Also owns and operates a DC plant in the Holy City of Mecca for Jabal Omar
773k RT Development Co. (51k RT)
Abu Dhabi – 38
Dubai – 18 • Operates the DC plant servicing the landmark King Abdulla Financial District (KAFD)
Northern Emirates – 7 development (50k RT)
Landmark Projects: Saudi Aramco, Jabal Omar Development

Bahrain District Cooling Company (Tabreed 99%)

• Owns and operates 1 DC plant (26k RT)
Oman
18k RT • Plant runs using sea water to provide cooling to the most prestigious developments in
KOM – 1 Bahrain
Lulu – 1 Landmark Projects: Reef Island, Financial Harbour, World Trade Centre
KSA Remal Castle – 1
83k RT Tabreed Oman (Tabreed 60%)
Aramco – 1
Jabal Omar – 1 • A partnership between Tabreed and prominent Omani pension funds
• Owns and operates 3 plants serving Knowledge Oasis Muscat, Oman Avenues Mall and
Remal Castle
Landmark Projects: Knowledge Oasis Muscat and Oman Avenues Mall

NATIONAL CENTRAL COOLING COMPANY PJSC 6

Connected Capacity

• Previously announced capacity guidance of 65,000 RT to be added in 2018 and 2019

• Key additions during Q2 2018 include West Bay I (15,005 RT) and Jabal Omar (4,146 RT) under
equity accounted entities

• 32,800 RT of S&T’s capacity recorded as consolidated capacity from Q1 2018

Consolidated Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

1
UAE 667 668 668 702 702
Bahrain 26 26 26 26 26
Oman 16 17 17 17 18
Total Consolidated 709 711 712 745 746

Equity Accounted Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

2
UAE 103 103 103 71 71
Qatar 196 196 199 199 214
KSA 77 77 79 79 83
Total Equity Accounted 375 375 381 349 368

Total 1,084 1,087 1,092 1,094 1,114

Notes:
1 Includes 32.8k RT of S&T which is now consolidated
2 Includes 1.5k RT added during Q1 2018 and excludes 32.8k RT of S&T which is now consolidated

NATIONAL CENTRAL COOLING COMPANY PJSC 7

H1 2018 Headline Performance
UAE Other
• Providing over 1.1m RT of cooling across GCC – growing 5%
Long-term annually since 2015

Group Connected
1,084 1,114

Capacity (kRT)
contracts with • Long term contracts (~25 years) mean over 90% of
953 980
286 315 341
263
credit worthy contracted capacity locked in for at least the next 10 years
690 694 770 773
customers • Approaching 50% of UAE capacity contracted with
Government customers H1 2015 H1 2016 H1 2017 H1 2018

Chilled Water Value Chain

• Group revenue growing at a 5% CAGR since 2015 driven by

Revenue growth Chilled Water revenue growth of 7% 579
639 651

Group Revenue
555 37 33
from existing and 48 63

(AEDm)
• Utility business model leads to steady increases in revenue
new business and profitability from existing customers 507 516 602 617

H1 2015 H1 2016 H1 2017 H1 2018

Profit from Operations EBITDA Net Income

• Predictability in earnings driven by capacity charge 308 326

Financial Results
Solid financial 264 275
211 193 219 212
Net income has grown 11% and EBITDA 7% annually since 186

(AED m)
• 178 160
performance 2015
153

H1 2015 H1 2016 H1 2017 H1 2018

Gearing 42%
40%
33%
• EBITDA margin of ~50% and sustained over recent years Net Income Margin
30%
Value to
• Strong balance sheet Operating Profit Margin 34%
shareholders 33%

• Stable cash flow generation EBITDA Margin 50%

48%

H1 2018 H1 2017

NATIONAL CENTRAL COOLING COMPANY PJSC 8

2. Financial Results
H1 2018 Income Statement
Consolidated Financials (AED m) H1 2018 H1 2017 Variance %
Revenue 651 639 11 1.8%
Chilled water revenue (95%) 617 602 15 2.5%
Value chain businesses (5%) 33 37 (4) -9.6%
Operating cost (329) (327) (3) 0.8%
Gross Profit 321 313 9 2.8%
Gross profit margin 49% 49%
Administrative and other expenses (102) (101) (1) 1.3%
Profit from Operations 219 211 7 3.5%
Operating profit margin 34% 33%
Net finance costs (86) (82) (4) 5.5%
Other gains and losses 34 1 33 -
Share of results of associates and joint ventures 46 62 (16) -26.3%
Income attributable to non-controlling interests (1) (0) (0) -
Net Income 212 193 19 10.0%
Net Income margin 33% 30%
EBITDA 326 308 18 5.9%
EBITDA margin 50% 48%

• Increase in revenue mainly driven by S&T Cool and chilled water CPI adjustment for 2018
• Share of results of associates and joint ventures declined compared to prior year mainly due to the impact of new
Key accounting standard (IFRS 15), consolidation of S&T and partial disposal of Saudi Tabreed
Observations • Other gains represent AED 32.6 million on partial disposal of Saudi Tabreed
• Higher finance cost due to higher EIBOR and drawdown of revolving credit facility to fund S&T acquisition

Stable utility business model with EBITDA margins of ~50%

NATIONAL CENTRAL COOLING COMPANY PJSC 10

H1 2018 Financial Position
Consolidated Financials (AED m) June 30, 2018 Dec 31, 2017 Variance %
Fixed Assets 7,132 6,874 258 3.7%
Associates and Joint Ventures 563 826 (263) -31.9%
Accounts Receivable 623 517 106 20.5%
Cash and Short Term Deposits 357 418 (61) -14.5%
Other Assets 59 60 (1) -2.8%
Total Assets 8,733 8,696 37 0.4%
Equity and Reserves 4,535 4,797 (262) -5.5%
Debt 3,332 3,169 163 5.1%
Other Liabilities 867 730 137 18.8%
Total Liabilities and Equity 8,733 8,696 37 0.4%

• Increase in fixed assets primarily reflects consolidation of S&T

• Decrease in Associates and Joint Ventures reflects IFRS 15 adjustment for an Associate and transfer of S&T to
Key consolidated subsidiary
Observations • Increase in accounts receivables primarily due to short term timing delays in customer collections
• Reduction in Equity & Reserves due to 2017 dividend and effect of the implementation of IFRS 9 and IFRS 15
• Increase in debt is mainly driven by higher drawdown of revolving credit facility to fund S&T acquisition

Robust Balance Sheet optimally positions Tabreed to capitalize on future growth opportunities

NATIONAL CENTRAL COOLING COMPANY PJSC 11

H1 2018 Cash Flow Statement
Consolidated Financials (AED m) H1 2018 H1 2017 Variance %
Profit from Operations 219 211 8 3.5%
Finance lease amortization 33 28 5 18.5%
Depreciation 74 69 5 7.9%
Working Capital and Other adjustments (45) (25) (20) 77.7%
Net cash flows from Operating Activities 281 283 (2) -0.5%
Capital expenditure incurred (41) (154) 113 -73.5%
Acquisition of additional share in a subsidiary (5) - (5) -
Dividends and interest income received 54 54 0 1.1%
Proceeds from sale of stake in Saudi Tabreed 40 - 40 -
Acquisition of S&T (252) - (252) -
Net cash flows from Investing Activities (203) (101) (102) 101.8%
Loans drawn down and principal repayments (net) 154 214 (60) -27.9%
Interest payments (72) (69) (3) 4.1%
MCB cash coupon paid - (22) 22 -100.0%
Others (222) (195) (27) 13.4%
Net cash flows from Financing Activities (139) (72) (67) 93.1%
Net Movement in Cash and Cash Equivalents (61) 110 (171) -155.2%
Cash and Cash Equivalents at the start of the period 418 390 28 7.3%
Cash and Cash Equivalents at 30 June 357 500 (143) -28.5%

• Operating cash flows was AED 280m in 1H 2018 – in line with 1H 2017
Key • Investing cash flows primarily reflect acquisition of S&T
Observations • Financing cash flows mainly include debt service and dividend payments in partly offset by additional
drawdown of revolving credit facilities

Strong cash flow generation from long term price certain contracts

NATIONAL CENTRAL COOLING COMPANY PJSC 12

Debt Portfolio
Net Debt Profile (AED m)
• Conservative leverage profile with current gearing of
3,220 3,110
2,974 42% (debt to debt + equity)

• 95% of debt is denominated in AED, with the balance

2,158 in USD and OMR, in line with cash flow generation
profile

• Target hedging range of 50-75%

− Currently 57% of the total debt is hedged into

fixed rate

Jun-15 Jun-16 Jun-17 Jun-18

Net Debt to LTM EBITDA (x) Debt Maturity Profile (AED m)

5.80x
1,400
5.05x 1,200
4.60x
1,000
4.00x 800

600

400

200

-
2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028-2046
Jun-15 Jun-16 Jun-17 Jun-18

NATIONAL CENTRAL COOLING COMPANY PJSC 13

3. Conclusion
Unique GCC-wide Infrastructure Assets Company

Why District • District Cooling is a critical part of the growing GCC infrastructure
Cooling? • District Cooling is 50% more energy efficient than conventional cooling and 16% cheaper for the customer

• One of the largest district cooling companies in the world with experienced management team
• 20 years of excellent operational performance, on-time delivery of projects and expertise in financing DC assets
Why
• Relationships with Government and key real estate developers across the region
Tabreed?
• A strong shareholder base with Mubadala and ENGIE providing support to operations and growth
• Shari’a complaint status to Tabreed stock

Robust • Sustainable, stable and predictable results, low operating risk business model with strong margins
Financial • Net income has grown 11% and EBITDA by 7% annually since 2015, driven by capacity additions and CPI pass through
Results • Stable utility infrastructure business model enables consistent YTD performance with ~50% EBITDA margins

Seeking and • Focus on stable Chilled Water leading to enhanced value from existing plants and increasing operational efficiencies
investing in
• Seeking and investing in organic and inorganic projects across the GCC
opportunities
• De-risking projects by using “take or pay” fixed date contracts and ring-fenced project financing
across GCC

• 161k RT capacity added since 2015

Track record
of delivering • 65k RT of signed up capacity additions expected by the end of 2019, 21.6k RT delivered in H1 2018
capacity • Regional footprint allows access to varied growth opportunities
growth • Operational track record, customer relationships and financial strength to benefit from growth in the region

NATIONAL CENTRAL COOLING COMPANY PJSC 15

Contact Us

Saket Somani
Churchgate Partners

Tel: +971 4 3132432

Email: Tabreed@churchgatepartners.com

Richard Rose Rachel Emmett

VP – Finance Sr. Manager – Treasury & IR

Tel: +971 2 2020400 Tel: +971 2 2020433

Email: IR@tabreed.ae Email: remmett@tabreed.ae

Management looks forward to engaging with shareholders and investors at the following events

8th Annual EFG Hermes London Conference 10 – 13 September, 2018

5th Arqaam Capital MENA Investors Conference 24 – 25 September, 2018

Third quarter earnings call End of October 2018

Fourth quarter earnings call End of January 2019

NATIONAL CENTRAL COOLING COMPANY PJSC