Saudi Tadawul Group Holding Company · TADAWUL:1111
Saudi Tadawul — FY2021 Earnings Presentation
33 slides from Saudi Tadawul's earnings presentation, Mar 9, 2022
Slide 1: FY 2021 Financial Results Presentation
FY 2021 Financial Results Presentation March 9, 2022
Slide 2: Disclaimer
Disclaimer All information included in this document is has been prepared solely to be used to present general information and financial results of Saudi Tadawul Group Holding Company (the “Group”). By attending the earnings call meeting or accessing this presentation, you agree to be bound by the f
Slide 3: Agenda
Agenda At a Glance Strategic Update and Business Review Financial Review Q&A Appendix
Slide 4: Speakers
Speakers Eng. Khalid Al Hussan Shahrukh Qureshi Roland Bellegarde Haitham Al Shathri Group Chief Executive Officer Group Chief Financial Officer Group Chief Strategy Officer Group Investor Relations Head Saudi Tadawul Group - FY 2021 - Earnings Presentation 3
Slide 5: At a Glance
At a Glance
Slide 6: We are Primed For the Next Stage of our Strategic Evolution
We are Primed For the Next Stage of our Strategic Evolution Group Vision Group Mission To be a world leading holding group fostering the As part of its 2030 Vision, Saudi Tadawul Group is development of a diverse Saudi capital market, and helping the Kingdom build a thriving economy with a a bridge
Slide 7: FY 2021 Strategic Financial Highlights
FY 2021 Strategic Financial Highlights Highlights Integrated & diverse business model well positioned for growth in line with Vision 2030 and Financial Sector Development Program The Saudi Stock Exchange Each subsidiary operates The Group announced its (Tadawul) transformed to Saudi independently wh
Slide 8: FY 2021 Operational Highlights
FY 2021 Operational Highlights • Saudi Arabia included in FTSE • Edaa and Euroclear sign agreement to launch fully Euroclearable link enabling international investors Emerging Markets Government Bond access to local Sukuk and bond markets Index (effective Apr 2022) • Edaa enabled link allowing Clear
Slide 9: FY 2021 Financial Highlights
FY 2021 Financial Highlights Operating Revenues Gross Profit Segmental Revenues (SAR Million) 1,166.08 8.01% ▲ 820.69 8.79% ▲ (SAR Million) Y-o-Y vs SAR 1,079.64 (SAR Million) Y-o-Y vs SAR 754.40 ▲ % 8.01 7.57% ▲ ▲ %13.91 ▼ %17.09 1,166.08 489.84 582.97 93.26 EBITDA Net Income After Zakat Capital Ma
Slide 10: Sustainability / ESG Highlights
Sustainability FY 2021 Financial / ESG Highlights 22% of Group's workforce are female 9% women occupying C-Level positions 32% of our employees The Group has identified the following six of the SDG targets to focus on out 17 goals in its sustainability programs are below 30 years of age Our sustaina
Slide 11: Strategic Update and Business Review
Strategic Update and Business Review
Slide 12: Vertically Integrated and Diversified Business Model
Vertically FY 2021 Financial Integrated and Diversified Highlights Business Model Key Activities Listing • Trading venue for a range of asset classes (equities, FI, ETFs, CEFs and REITs) as well as client coverage and issuer services Trading • Enhancement of the Exchange’s offering of listed instrum
Slide 13: We are Primed For the Next Stage of our Strategic Evolution
We are Primed For the Next Stage of our Strategic Evolution Strategic Goals Growth & Diversification Integrated & Connected Capable & Agile Organisational Market Innovation & Strategic Pillars Listing & Trading Clearing Depository Performance & 7 Key Information Digitalisation Expansion Capabilities
Slide 14: Listing Momentum Expected to Continue
Listing Momentum Expected to Continue Number of Listed Securities on Main Market & Nomu Incentives for Listing • Core goal of the Financial Sector Development Program is to 207 224 encourage private sector listings 204 4 14 5 • STG is collaborating with 10+ government entities to incentivise listing
Slide 15: Fixed Income: An Asset Class Poised for Growth
Fixed Income: An Asset Class Poised for Growth Number of Listed Bond & Sukuk Securities Fixed Income Offering Milestones Relaxation of regulatory restrictions for non-QFI foreign investors on bond market access 79 69 72 5 Listing of government & corporate bonds and Sukuks 5 5 64 67 74 Launch of iBox
Slide 16: Financial Review
4S Financial Review
Slide 17: Growing Revenues Supported by Enhanced Operating Leverage
Growing Revenues Supported by Enhanced Operating Leverage Operating Revenue Operating Expenditures excl. D&A (SAR million) (SAR million) 2% 8% 3% YoY growth 91% 497 YoY growth 1,166 1,080 YoY growth YoY growth 488 565 472 2019 2020 2021 2019 2020 2021 Saudi Tadawul Group - FY 2021 - Earnings Present
Slide 18: Solid Underlying Operational Growth & Lower Zakat Drive Strong Earnings Growth
Solid Underlying Operational Growth & Lower Zakat Drive Strong Earnings Growth EBITDA and EBITDA Margin Net Income After Zakat (SAR million) (SAR million) Margin 16% 55% 57% Margin 27% 46% 50% 13% 17% 536% 227% YoY growth 669 YoY growth 588 YoY growth 591 YoY growth 501 153 93 2019 2020 2021 2019 20
Slide 19: Established Core Revenue Base with Further Diversification Potential
Established Core Revenue Base with Further Diversification Potential Operating Revenue Breakdown (SAR million) • Established core revenue base in trading, post trade, listing and market information activities • Approximately 30.5% of operating revenue is non-trading driven • Further diversification
Slide 20: Robust Capital Allocation Policy
Robust Capital Allocation Policy Capital Expenditure Declared Dividends(1) (SAR million) (SAR million) 94 360 46 43 3 SAR 120 120 1 1 SAR SAR 2019 2020 2021 2019 2020 2021 (1) Special dividends have been paid in 2021 for financial assets optimization Saudi Tadawul Group - FY 2021 - Earnings Presenta
Slide 21: Q&A
Q&A
Slide 22: Appendix
Appendix
Slide 23: Saudi Tadawul Group – A Differentiated Capital Markets Leader
Saudi Tadawul Group – A Differentiated Capital Markets Leader Trading Clearing Settlement Innovation Listings Only Central Counterparty (CCP) in Services Objective Equity, fixed income, ETFs, CEFs the Kingdom Depository, Registry, Settlement & Focus on new data and technology Cash Markets 450+ MT30
Slide 24: Key Investment Highlights
Key2021 FY Investment Financial Highlights Highlights National Champion and Integral to Vision 2030 3.4% 21-23E GDP CAGR Differentiated Business Model — Integrated, Scalable, Diverse Activated in +13.91% Activated in 2021 2021 YoY revenue growth 2021 Amongst the Top Undisputed Centre for Regio
Slide 25: KSA is a Reformed Financial Economy with Increased Focus on Privatisations and Listings
KSA FY 2021 is a Reformed Financial Economy with Increased Focus on Highlights Privatisations and Listings Privatisation Program Incentives for Listing • Core goal of the Financial Sector Development Program is to encourage private sector listings • Identify government assets and services that can b
Slide 26: A History of Innovation and Execution
A History of Innovation and Execution … • Began as an informal 2021 financial market • Inclusion in FTSE EM index • Introduction of QFI program(1) • Launch of derivatives market • Deployment of Nasdaq’s X- Stream platform • Muqassa commences operations(2) • Group reorganisation • Establishment of Ta
Slide 27: Coupled with a Highly Accomplished Board of Directors
… Coupled with a Highly Accomplished Board of Directors Sarah Yazeed Al Khalid Hashem Yousef Al Suhaimi Humaid Al Hussan Al Hekail Al Benyan Chairperson Vice-Chairman Group Chief Director Director (Independent) (Non-Executive) Executive (Independent) (Independent) Officer (Executive) Boa Technology
Slide 28: Seasoned and Visionary Management Team
Seasoned and Visionary Management Team 220+ years of combined experience Group Management Group Chief Group Chief Group Chief Group Chief Group Chief Group Group Chief Group Chief Executive Financial Strategy Operations Legal Chief Human Risk & Regulatory Officer Officer Officer Officer Officer Reso
Slide 29: Financial Review / Key Ratios
Financial Review / Key Ratios SAR million, ended 31st December 2020 2021 Y-o-Y Change Trading revenues 755.5 810.5 7.3% ▲ Non-trading revenues 324.1 355.5 9.7% ▲ Operating revenues 1,079.6 1,166.1 8.0% ▲ Opex 536.5 554.2 3.3% ▲ EBITDA 591.4 668.9 13.1% ▲ EBITDA margin 55% 57% Net income after Zakat
Slide 30: P&L Snapshot
P&L Snapshot SAR million, ended 31st December 2020 2021 Y-o-Y Change Operating revenue 1,079.6 1,166.1 8.0% ▲ Operating expenses 488.3 497.2 1.8% ▲ EBITDA 591.4 668.9 13.1% ▲ EBITDA margin 55% 57% Depreciation & amortization 48.2 57.0 18.3% ▲ EBIT 543.2 611.8 12.6% ▲ EBIT margin 50% 52% Investment i
Slide 31: Financial Position Snapshot
Financial Position Snapshot SAR million, ended 31st December 2020 2021 Y-o-Y Change Cash & cash equivalents 96.8 76.2 -21.3% ▼ Investments 3,204.8 2,687.0 -16.2% ▼ Other assets 791.5 780.1 -1.4% ▼ Total assets 4,093.1 3,543.3 -13.4% ▼ Total liabilities 458.5 450.9 -1.6% ▼ Total equity 3,634.6 3,092.
Slide 32: IPO Pipeline
IPO Pipeline Market Size (shares) Closing Date Al-Dawaa Medical Services Co. Main Market 25,500,000 1 Mar 2022 Al Masane Al Kobra Mining Co. Main Market 19,800,000 11 Mar 2022 Al Nahdi Medical Co. Main Market 39,000,000 15 Mar 2022 Saudi Home Loans Co. Main Market 30,000,000 29 Mar 2022 Saudi Tadawu
Slide 33: Thank you
Thank you Saudi Tadawul Group Tel: +966 (0) 11 218 9299 Email: investorrelations@tadawulgroup.sa P.O. Box 12211-3388 Address: 6897 King Fahd Road – Al Ulaya, Riyadh Kingdom of Saudi Arabia www.tadawulgroup.sa
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