KQ AGM Looks like it was a thriller.

Where is @Obiero to bring the report.

CENTUM AGM 2019

Shareholders Goodies
A Carrefour gift card worth ksh 2000/=, pen and a coca cola drink of your choice. Just like other Agms register, get goodies and disappear was witnessed here.

Key Highlights

2019 marks the end of Centum 3.0. During this period; Assets grew from 28.8 billion to 71.6 billion representing a CAGR of 20%, Nav grew from 34.50 to 79 (the market says otherwise). The CEO said they will consider buyback program. I think it was passed during 2016 AGM.

There was one off expense(no figures provided on the same)- BCG (Boston Consulting Group) was engaged to review Centum 3.0 and help in formulation of Centum 4.0

The agreement with Carlsberg was to distribute their beverages in Kenya then after sometime build a factory which will be brewing the beverages locally. Unfortunately they couldn’t build the factory due to the low volume sales in Kenya. Hence the decision to sell at a loss.

Proceeds from sale of Almasi Beverages Limited will be used to pay off debts and create war chest for new investments.

Centum 4.0

Centum 4.0 is predicated on five strategic pillars, namely:

1. Return and dividend payout- Generate a minimum return on equity of 20%; Optimise dividend pay-out to the higher of 30% of the cash annuity income (excluding capital gains) and the previous year’s dividend pay-out.

2. Capital structure and liquidity- Double the book-value of shareholders’ funds to over KES 100 Billion by FY2024. Debt level will depend on project involved.

3.Operating costs.

4. Organisational effectiveness.
5. Portfolio focus- The company will focus on three core business units;
i) Real Estate portfolio (Target asset allocation: 45-55%)
ii) Private Equity portfolio (Target asset allocation: 30-40%)
iii) Marketable Securities portfolio (Target asset allocation: 10-20%)
No more capital deployment to Development portfolio which has a gross return of -1% (worst performer compared to other asset classes) over the centum 3.0 period but operations will continue.

Shareholders Hour.

1. A shareholder asked whether we will ever visit Vipingo or even Entebee. The CEO said “kuna vumbi mingi” but they will let us know.

2. Chami, Jepkorir and Irungu were all present and in their own element.

3. A shareholder sought clarification on why Longhorn publishers annual report talks of borrowing at 14% p.a and Centum Plc annual report talks of 17% p.a, also why is there is difference in reporting of Longhorn’s Debt at the parent company level. The CEO directed the CFO to answer the question who said the difference in debt reporting is because each company has different financial year ending.
**The question on interest rate was ignored

CENTUM AGM 2019

Shareholders Goodies
A Carrefour gift card worth ksh 2000/=, pen and a coca cola drink of your choice. Just like other Agms register, get goodies and disappear was witnessed here.

Key Highlights

2019 marks the end of Centum 3.0. During this period; Assets grew from 28.8 billion to 71.6 billion representing a CAGR of 20%, Nav grew from 34.50 to 79 (the market says otherwise). The CEO said they will consider buyback program. I think it was passed during 2016 AGM.

There was one off expense(no figures provided on the same)- BCG (Boston Consulting Group) was engaged to review Centum 3.0 and help in formulation of Centum 4.0

The agreement with Carlsberg was to distribute their beverages in Kenya then after sometime build a factory which will be brewing the beverages locally. Unfortunately they couldn’t build the factory due to the low volume sales in Kenya. Hence the decision to sell at a loss.

Proceeds from sale of Almasi Beverages Limited will be used to pay off debts and create war chest for new investments.

Centum 4.0

Centum 4.0 is predicated on five strategic pillars, namely:

1. Return and dividend payout- Generate a minimum return on equity of 20%; Optimise dividend pay-out to the higher of 30% of the cash annuity income (excluding capital gains) and the previous year’s dividend pay-out.

2. Capital structure and liquidity- Double the book-value of shareholders’ funds to over KES 100 Billion by FY2024. Debt level will depend on project involved.

3.Operating costs.

4. Organisational effectiveness.
5. Portfolio focus- The company will focus on three core business units;
i) Real Estate portfolio (Target asset allocation: 45-55%)
ii) Private Equity portfolio (Target asset allocation: 30-40%)
iii) Marketable Securities portfolio (Target asset allocation: 10-20%)
No more capital deployment to Development portfolio which has a gross return of -1% (worst performer compared to other asset classes) over the centum 3.0 period but operations will continue.

Shareholders Hour.

1. A shareholder asked whether we will ever visit Vipingo or even Entebee. The CEO said “kuna vumbi mingi” but they will let us know.

2. Chami, Jepkorir and Irungu were all present and in their own element.

3. A shareholder sought clarification on why Longhorn publishers annual report talks of borrowing at 14% p.a and Centum Plc annual report talks of 17% p.a, also why is there is difference in reporting of Longhorn’s Debt at the parent company level. The CEO directed the CFO to answer the question who said the difference in debt reporting is because each company has different financial year ending.
**The question on interest rate was ignored