Shuaa Capital (p.s.c) · DFM:SHUAA
Shuaa Capital (p.s.c) — Q2 2021 Earnings Presentation
27 slides from Shuaa Capital (p.s.c)'s earnings presentation, Aug 15, 2021
Slide 1: Earnings Presentation Q2 2021
E a r n i n g s P re s e n ta t i o n Q2 2021 15 August 2021 Strictly Confidential © 2020 SHUAA Capital psc. All rights reserved
Slide 2: Q2 2021 Executive Summary
Q2 2021 Executive Summary Continued business momentum across platform with record H1 2021 performance Q2 2021 net profit attributable to shareholders of AED 29 million and operating profit of AED 57 million, up 17% and 28% quarter-on- quarter with all segments profitable and despite impairments an
Slide 3: Net Profit Performance
Net Profit Performance Quarter-on-Quarter & Year-on-Year Net Profit1 Commentary AEDm (238m) Q2 2021 profit at AED29m, representing fifth consecutive quarter of profit H1 2021 records 10-year high net profit performance as we continue to withstand challenging environment 267 Significantly lower c
Slide 4: Revenue Performance
Revenue Performance Quarter-on-Quarter & Year-on-Year Revenues Commentary AEDm 255 (5m) Operating income underpinned by solid (4%) recurring revenue base Other 199 145 Income 140 Dividend recognition in consolidated flagship fund 102 79 New permanent capital vehicles 3 77 increasingly contribute
Slide 5: Expense Performance
Expense Performance Quarter-on-Quarter & Year-on-Year Expenses Commentary AEDm 114 20m Continued cost discipline amidst focused 29 32% investments into growth 83 21 17 Increase in staff costs driven by 67 58 63 planned hiring initiatives across the Other 18 16 platform to support future growth Exp
Slide 6: Other Income Performance
Other Income Performance Quarter-on-Quarter & Year-on-Year Other Income Commentary AEDm Associates P&L Finance Costs Other Income/Exp FV Gains/Losses1 (192m) 189 Q2 2021 other income at AED(3)m with 152 finance costs being offset by associate 68 income, FV gains and other valuation 22 adjustments 48
Slide 7: Segment Performance
Segment Performance Asset Management Investment Banking Corporate AEDm AEDm AEDm 278 45 41 8 21 5 110 18 89 0 56 30 5 (0) (0) EBITDA Q3 20 Q4 20 Q1 21 Q2 20 Q2 21 Q3 20 Q4 20 Q1 21 Q2 20 Q2 21 Q3 20 Q4 20 Q1 21 Q2 20 Q2 21 Revs. 28 34 74 49 35 6 3 3 13 9 33 217 25 84 96 Net 66 50 (7) 230 18 (5) 13 3
Slide 8: Asset Management Segment Performance
Asset Management Segment Performance Asset Management Commentary AEDm 45 Steady quarter with stable recurring fee 41 base Real Estate: Normalization of revenues for Q2 2021 21 following catch-up fee in Q1 2021 related to 18 real estate development asset Public Markets: Performance driven increas
Slide 9: Investment Banking Segment Performance
Investment Banking Segment Performance Investment Banking Commentary AEDm 8 Q2 2021 showed return to profitability in Banking and Markets 5 EBITDA Banking: Positive trend driven by success and advisory fees 0 (0) (0) Markets: Business has strengthened also on the Q3 20 Q4 20 Q1 21 Q2 20 Q2 21 ba
Slide 10: Corporate Segment Performance
Corporate Segment Performance Corporate Commentary AEDm 278 EBITDA Q2 2021 performance driven by 110 89 Continued strong performance from consolidated CFD business (NCM) 56 30 Fair value gains and dividend income recognition from consolidated fund slightly offset by one-off costs related to Q3 2
Slide 11: Non-core asset reduction on track
Non-core asset reduction on track Non-Core Unit Evolution Commentary AEDm 72% 157m Continued progress in Q2 2021 with good visibility on 113 remaining asset reduction 19 25 17% reduction over the quarter namely driven by several non-core asset 403 sales 132 72% reduction since July 2019 Contin
Slide 12: AuM remains at an elevated level
AuM remains at an elevated level AuM Evolution Commentary US$bn 14.1 Slight decrease in total AuM in Q2 2021 (334m) (2%) 13.9 Increase in DPM1 AuM and strong NAV performance of several funds and investments offset by decrease in value of a UK real estate portfolio due to annual revaluation, client
Slide 13: 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 14: Further examples of SHUAA's transformation phase
Further examples of SHUAA’s transformation phase Strengthen and grow core businesses Diversify products and services within core businesses Scale the platform and operate more efficiently Digital Wealth Platform Recruitment Non-Core Unit (NCU) Development of the firms’ digital Ongoing recruitment dr
Slide 15: Reiterating annual targets
Reiterating annual targets Integration Transformation FY2019 FY2020 H1 2021 Medium-term ambition Long-term ambition 5.2% 8.5% 7.2% > 15% Return on Equity Return on Equity Return on Equity1 7-12% Return on Equity Return on Equity 87% 55% 58% < 60% Cost Income Cost Income Cost Income Cost Income Ratio
Slide 16: Appendix
Appendix
Slide 17: Quarterly P&L (2020-2021)
Quarterly P&L (2020-2021) Quarterly Financials Q2 Q3 Q4 FY Q1 Q2 AED '000 2020 2020 2020 2020 2021 2021 Interest income 3,212 5,677 4,195 18,646 3,755 4,198 Interest expense (694) (2,635) 348 (3,766) (1,112) (1,656) Net interest income 2,518 3,042 4,542 14,880 2,643 2,542 Fee and commission income 5
Slide 18: Balance Sheet Summary (2019-2021)
Balance Sheet Summary (2019-2021) AED '000 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 2021 2021 2020 2020 2020 2020 2019 2019 2019 2019 Assets Cash and deposits with banks 321,200 353,566 416,975 329,863 327,993 293,701 360,193 297,852 63,790 51,572 Receivables and other d
Slide 19: Segmental Financials Q2 2021
Segmental Financials Q2 2021 Public Private Asset Investment Investment Principal Corporate AED '000 Real Estate Debt Banking Markets Non-core Corporate Q2 2021 Markets Markets Management Management Banking investment HQ Net Fee and Commission Income 20,925 11,164 1,635 1,362 35,086 0 842 976 1,818
Slide 20: Segmental Financials Q1 2021
Segmental Financials Q1 2021 Private Asset Investment Investment Principal AED '000 Real Estate Public Markets Debt Banking Markets Non-core Others Corporate Q1 2021 Markets Management Management Banking investment Net fee and commission income 57,331 10,819 2,141 3,986 74,277 0 223 305 528 20,254 1
Slide 21: 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 22: 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 (
Slide 23: 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 24: Segmental Financials Q2 2020
Segmental Financials Q2 2020 Public Private Investment Asset Investment Principal AED '000 Real Estate Banking Markets Non-core Others Corporate Q2 2020 Markets Markets Solutions Management Banking investment Net fee and commission income 21,405 5,201 694 2,943 30, 243 0 517 517 21,620 1,293 14 22,9
Slide 25: 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 26: 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 27: 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