Shuaa Capital (p.s.c) · DFM:SHUAA
Shuaa Capital (p.s.c) — Q3 2021 Earnings Presentation
30 slides from Shuaa Capital (p.s.c)'s earnings presentation, Nov 11, 2021
Slide 1: Earnings Presentation Q3 2021
E a r n i n g s P re s e n ta t i o n Q3 2021 11 November 2021 Strictly Confidential © 2020 SHUAA Capital psc. All rights reserved
Slide 2: Q3 2021 Executive Summary
Q3 2021 Executive Summary Solid business momentum across the platform and continued stability of the recurring revenue base Strong 9-month profitability: Q3 2021 net profit attributable to shareholders of AED 35 million, up 19% quarter-on-quarter. On the 9- month period ending Q3 2021, the Group r
Slide 3: Net Profit
Net Profit Quarter-on-Quarter & Year-on-Year Net Profit1 Commentary AEDm (24) (41%) Q3 2021 profit at AED35m, representing the continued strong business momentum across our platform Slightly higher compared with Q2 2021 62 59 namely driven by fair value gains and mark to market effects in flagship
Slide 4: Revenue Breakdown
Revenue Breakdown Quarter-on-Quarter & Year-on-Year Revenues Commentary AEDm 255 0 Recurring revenues continue to contribute (0%) the majority of the revenue base Other Income 199 140 Continued positive contribution from recurring management fee base 102 across all segments 3 77 Buildup of perma
Slide 5: Recurring Revenues
Recurring Revenues Quarter-on-Quarter Recurring Revenue Base Commentary 160 120% 140 100% 95% 97% 97% 100% 120 Continued strong predictability of revenue streams in line with our strategy 80% 100 Revenue (AEDm) 62% Whilst there is variability in the quarterly 80 60% recurring revenue as a % of tot
Slide 6: Expense Breakdown
Expense Breakdown Quarter-on-Quarter & Year-on-Year Expenses Commentary AEDm 117 (14m) Other 31 (22%) Expenses Strong cost discipline despite targeted 83 investments into expanding workforce G&A 21 17 58 65 51 Staff costs have remained flat despite Provisions 16 16 16 hiring initiatives across the
Slide 7: Other Income Breakdown
Other Income Breakdown Quarter-on-Quarter & Year-on-Year Other Income Commentary AEDm Associates P&L Finance Costs Other Income/Exp FV Gains/Losses1 (40m) (60%) Q3 2021 other income at AED26m with fair value gains more than offsetting finance costs 66 22 26 Positive market environment contributed
Slide 8: Segmental Performance
Segmental Performance Asset Management Investment Banking Corporate AEDm AEDm AEDm 110 45 89 27 56 56 21 5.2 18 30 0.0 0.4 5 (0.3) (0.3) EBITDA Q4 20 Q1 21 Q2 21 Q3 20 Q3 21 Q4 20 Q1 21 Q2 21 Q3 20 Q3 21 Q4 20 Q1 21 Q2 21 Q3 20 Q3 21 Revs. 34 74 35 28 45 3 3 9 6 4 217 25 96 33 18 Net 50 (7) 18 66 19
Slide 9: Asset Management Segment Performance
Asset Management Segment Performance Asset Management Commentary AEDm Steady quarter with stable recurring fee base 45 Real Estate: Continued contribution from recurring revenue and management fee 27 Investment in build-up of asset 21 management team as part of growth 18 strategy Public Markets:
Slide 10: Investment Banking Segment Performance
Investment Banking Segment Performance Investment Banking Commentary AEDm Investment Banking segment performance driven by the closures of transactions and deals Banking: 5.2 Continued effects of cyclicality and timing of deal closures Strong pipeline of active deals and mandates with certain cl
Slide 11: Corporate Segment Performance
Corporate Segment Performance Corporate Commentary AEDm 110 89 56 56 Q3 2021 performance driven by: 30 Fair value gains in consolidated fund Significant contribution from consolidated CFD business (NCM) EBITDA Provision reversal on a loan within NCU Q4 20 Q1 21 Q2 21 Q3 20 Q3 21 Revenues 217 2
Slide 12: Significant progress on non-core asset reduction in Q3 2021
Significant progress on non-core asset reduction in Q3 2021 Non-Core Unit Evolution Commentary AEDm 90% 216m Non-core unit (NCU) reduced by 90% since inception Further 63% reduction over the quarter with significant additional cash proceeds generated in Q3 2021 NCU to be closed in Q4 2021 0 12
Slide 13: AuM levels subject to quarterly FX fluctuations
AuM levels subject to quarterly FX fluctuations AuM Evolution Commentary US$m (422m) (3%) Slight decrease in total AuM in Q3 2021 Decline mainly driven by FX movements in 14,090 UK real estate fund and revaluation of UAE 13,899 real estate portfolio 13.6 13,601 Pipeline of funds, investments and
Slide 14: Deleveraging strategy remains in place
Deleveraging strategy remains in place Leverage Ratio Breakdown Commentary AEDm 129% Continued disciplined approach to deleveraging has resulted in 82% continued decrease in the leverage ratio during 2021 to 129% 2,633 713 Other Liabilities 157 Q3 2021 leverage ratio is currently 17% points belo
Slide 15: Net repayment of adjusted debt
Net repayment of adjusted debt Adjusted Debt1 – Repayment Breakdown AEDm 90% 82% 2,037 2,026 1,820 157 Other 1,663 Liabilities 150 Payables 278 Borrowings 1,392 Adjusted Debt - Net Repayment: Adjusted Debt – Equity – Equity – December 2020 9 Months September 2021 September 2021 December 2020 15 1 Ad
Slide 16: Continued execution on strategy
Continued execution on strategy Strengthen and grow core businesses Diversify products and services within core businesses Scale the platform and operate more efficiently Asset Management Investment Banking Corporate Special Situations Bespoke and M&A and Restructuring Enterprise Fund Tailored Portf
Slide 17: In Focus – Public Markets
In Focus – Public Markets Goldilocks Fund ICC Fund Platform & Insurance AUM Constructive 158% 35% 5 Equity & Fixed Activism Return Since Year to Date Large Insurance Income Investment Approach Inception Return Company Portfolios Portfolio Mandates H1 2021 Dividends $521 million Benchmarks $22 millio
Slide 18: Reiterating annual targets
Reiterating annual targets Integration Transformation FY 2019 FY 2020 Q3 2021 YTD Medium-term ambition Long-term ambition 5.2% 8.5% 7.7% > 15% Return on Equity Return on Equity Return on Equity1 7-12% Return on Equity Return on Equity 87% 55% 61% < 60% Cost Income Cost Income Cost Income Cost Income
Slide 19: Appendix
Appendix
Slide 20: Quarterly P&L (Q3 2020-Q3 2021)
Quarterly P&L (Q3 2020-Q3 2021) Q3 Q4 FY Q1 Q2 Q3 AED '000 2020 2020 2020 2021 2021 2021 Interest income 5,677 4,195 18,646 3,755 4,198 2,378 Interest expense (2,635) 348 (3,766) (1,112) (1,656) (1,880) Net interest income 3,042 4,542 14,880 2,643 2,542 498 Fee and commission income 64,685 58,559 23
Slide 21: Balance Sheet Summary (2019-2021)
Balance Sheet Summary (2019-2021) AED '000 30-Sep 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 2021 2021 2021 2020 2020 2020 2020 2019 2019 2019 2019 Assets Cash and deposits with banks 391,614 321,200 353,566 416,975 329,863 327,993 293,701 360,193 297,852 63,790 51,572 Rec
Slide 22: Segmental Financials Q3 2021
Segmental Financials Q3 2021 Public Private Asset Investment Investment Principal AED '000 Real Estate Debt Banking Markets Non-core Others Corporate Q3 2021 Markets Markets Management Management Banking investment Net fee and commission income 19,237 19,561 1,061 1,188 41,047 0 99 1,492 1,591 11,24
Slide 23: Segmental Financials Q2 2021
Segmental Financials Q2 2021 Public Private Asset Investment Principal AED '000 Real Estate Debt Banking Markets Non-core Others Corporate Q2 2021 Markets Markets Management Banking investment Net fee and commission income 20,925 11,164 1,635 1,362 35,086 0 842 1,818 20,988 2,167 (1) 23,154 60,059 A
Slide 24: Segmental Financials Q1 2021
Segmental Financials Q1 2021 Public Private Asset Investment Principal AED '000 Real Estate Debt Banking Markets Non-core Others Corporate Q1 2021 Markets Markets Management Banking investment Net fee and commission income 57,331 10,819 2,141 3,986 74,277 0 223 528 20,254 1,709 117 22,080 96,885 Adv
Slide 25: Segmental Financials FY 2020
Segmental Financials FY 2020 Public Private Investment Asset Investment Principal AED '000 Real Estate Banking Markets Non-core Others Corporate FY 2020 Markets Markets Solutions Management Banking investment Net fee and commission income 86,569 21,549 4,011 4,549 116,678 3,513 1,878 5,391 94,049 6,
Slide 26: Segmental Financials Q4 2020
Segmental Financials Q4 2020 Public Private Investment Asset Investment Principal AED '000 Real Estate Banking Markets Non-core Others Corporate Q4 2020 Markets Markets Solutions Management Banking investment Net fee and commission income 24,906 6,000 1,934 603 33,444 3,513 370 3,883 20,555 1,666 (3
Slide 27: Segmental Financials Q3 2020
Segmental Financials Q3 2020 Public Private Investment Asset Investment Principal AED '000 Real Estate Banking Markets Non-core Others Corporate Q3 2020 Markets Markets Solutions Management Banking investment Net fee and commission income 19,689 6,885 692 436 27,702 0 828 828 29,321 2,141 36 31,498
Slide 28: Disclaimer
Disclaimer THIS PRESENTATION IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THIS PRESENTATION MAY NOT BE PUBLISHED OR FURTHER DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, TO ANY OTHER PERSON IN ANY JURISDICTION WHERE, OR TO ANY OTHER PERSON TO WHOM, TO DO SO WOULD BE UNLAWFUL. By
Slide 29: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This document contains forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the
Slide 30: SHUAA Capital psc Head Office
SHUAA Capital psc Head Office: The H Hotel Dubai, Offices Tower, Level 15, Office No. 1502 P.O. Box: 31045, Dubai, United Arab Emirates Tel: +971 (4) 330 3600, Fax: +971 (4) 330 3550, E-mail: info@shuaa.com, Website: www.shuaa.com A financial investment company licensed and regulated by the U.A.E. S