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ZCCM-IH : OVERVIEW & SHARE SALE DOWN ZCCM Investments Holdings Plc UK ZAMBIA TRADE & INVESTMENT FORUM, LONDON WEDNESDAY 4 NOVEMBER 2015 DR. PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH

ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

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Page 1: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

ZCCM-IH : OVERVIEW & SHARE SALE DOWN

ZCCM Investments Holdings Plc

UK ZAMBIA TRADE & INVESTMENT FORUM, LONDON

WEDNESDAY 4 NOVEMBER 2015

DR. PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH

Page 2: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on
Page 3: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

Content of Presentation

Who we are

ZCCM-IH Shareholding Structure

Overview of ZCCM-IH Portfolio

Details of Share Sale Down

Why buy Shares of ZCCM-IH?

Conclusion

Page 4: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

Who we are

ZCCM Investments Holdings Plc is an

investments holdings company with diversified

interests in mining, energy and other sectors of

the Zambian Economy

Listed on the Lusaka Stock Exchange, London

Stock Exchange and Euronext Paris (Marche

Libre)

Largest Company by Market Capitalisation on

the Lusaka Stock Exchange

Page 5: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

Current ZCCM-IH Shareholding

SHAREHOLDER CLASS OF SHARES NUMBER OF SHARES % OF SHAREHOLDING

IDC A 96,926,669 60.28

GRZ B 27,961,237 17.39

NAPSA B 24,120,043 15.00

MINORITIES B 11,792,337 7.33

TOTAL 160,800,286 100.00

Page 6: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

ZCCM-IH Shareholding post Sale Down

SHAREHOLDER CLASS OF SHARES NUMBER OF SHARES % OF SHAREHOLDING

IDC A 96,926,669 60.28

NAPSA B 24,120,043 15.00

MINORITIES B 39,753,574 24.72

TOTAL 160,800,286 100.00

Page 7: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

Overview of ZCCM-IH : Portfolio

Page 8: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

Overview of ZCCM-IH : SELECTED

IMAGES

MAAMBA COLLIERIES LTD

(35%)NDOLA LIME COMPANY (100%)

Page 9: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

Overview of ZCCM-IH : SELECTED

IMAGES

KANSANSHI MINING PLC (20%)LUBAMBE COPPER MINE LTD

(20%)

Page 10: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

Overview of ZCCM-IH : SELECTED

IMAGES

CEC PLC (20%)CHIBULUMA MINES PLC (15%)

Page 11: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

Overview of ZCCM-IH : Some Key

Highlights

Strong Balance Sheet.

No Debt.

Best performer on the LuSE in 2014 (+163.5%)

Biggest dividend paid out on the LuSE in 2014

($40 Million)

Dividend Policy : 20% of realised profits

One of the largest Company by Market

Capitalisation on the LuSE

Page 12: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

Overview of ZCCM-IH : Investment Case

Quality assets with strong & highly regarded

partners.

Partners and operators – strong brands, big players,

credible miners – ZCCM-IH provides the only access /

entry point to these projects, which are operated by

the biggest miners in the world.

Experienced Management : New Vision and Strategy.

Legacy liabilities largely removed leaving clean

balance sheet.

Limited Capital Spending requirements compared to

mining companies.

Cash Resources and expected resources from

Dividends.

Defined Dividend Policy

Government Link

Fund of Funds - opportunity through a single

investment to gain exposure to a broad portfolio of

Zambian companies

Strong exposure to the Copperbelt: some of the best

proven mineral deposits in the world, strategically

located.

Valued below intrinsic value. JP Morgan report shows

undervaluing of ZCCM-IH, hence discount on offer.

Being a listed Company on 3 Stock Exchanges

Page 13: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

Salient Details of the Shares Sale Down

Market Price as at Friday 30 October 2015 K40.00

Offer Price K38.00

Total Number of shares on Offer 27,961,237

Percentage Shareholding on Offer 17.4%

Transaction fees payable by Preferred Applicants Nil

Transaction fees payable by General Applicants 1.375%

Last Day of Postal Applications Friday 27 November 2015

Offer Closes Monday 30 November 2015

Results of Offer Monday 14 December 2015

Page 14: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

Summary : Why Buy Shares of ZCCM-IH?

ZCCM-IH

TIER 1 ASSETS

CLEAN BALANCE SHEET

DIVERSIFICATION STRATEGY :

ENERGY & REAL ESTATE

LOW COST OPERATION

DIVIDEND PAYING

EXPOSURE TO COPPERBELT

MINERAL ASSETS

ONLY ENTRY POINT INTO BIG MINING ASSETS AND PROJECTS

EXPERIENCED MANAGEMENT

Page 15: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

ZCCM-IH on Social Media

Website : http://www.zccm-ih.com.zm

The Information Supplement can be downloaded

from the Investor Relations Portal

Facebook : Search for ‘ZCCM IH PLC’

Email : [email protected]

Page 16: ZCCM Investments Holdings Plc - Developing Markets Dr Pius... · PIUS KASOLO, CHIEF EXECUTIVE OFFICER ZCCM-IH. ... JP Morgan report shows undervaluing of ZCCM-IH, hence discount on

THE END