Waha Capital Company · ADX:WAHA
Waha Capital — Investor Presentation (August 2014)
33 slides from Waha Capital's investor presentation, August 2014
Slide 1: Investor Presentation
Investor Presentation August 2014 Principal Investments Capital Markets Industrial Real Estate
Slide 2: Disclaimer
Disclaimer This document is not an offer, invitation or recommendation to subscribe to or purchase any securities. Nothing in this document shall form the basis of any contract or commitment whatsoever. This document contains forward-looking statements. Forward-looking statements can be identified b
Slide 3: Table of Contents
Table of Contents Company Overview…………………………………………………………………………....... 04 Business Highlights …………………………………………………………………………….. 11 Financial Highlights……………………………………………………………………………... 27 Stock Characteristics and Book Value………………………………………………………… 31 All Rights Reserved © Waha Capital 2014
Slide 4: Company Overview
Company Overview All Rights Reserved © Waha Capital 2014
Slide 5: Who is Waha Capital?
Who is Waha Capital? A leading Abu Dhabi-based investment company; established in 1997 We are… and listed on the Abu Dhabi Securities Exchange in 2000 An aircraft leasing company, which evolved into an investment company We were… managing a portfolio of conventional and alternative assets Principal
Slide 6: Company Milestones
Company Milestones Founded in 1997 and listed on ADX in 2000, Waha Capital has transformed from a business operator to an investment company; its investment arm acquired a financial investment company license from the UAE Central Bank in 2013 2007 2008 2009 2010 2011/12 2013 2014 Launch of Acquired
Slide 7: Board of Directors
Board of Directors Chaired by H.E. Hussain Al Nowais, Waha Capital’s board comprises seven prominent UAE figures H.E. Hussain Al Nowais Fahad Saeed Al Raqbani Chairman Director Chairman of Senaat, Al Nowais Investments, Director General of the Abu Dhabi Council for National Petroleum Construction Co
Slide 8: Management Team
Management Team Waha Capital’s strategy is executed by a team of highly experienced professionals Salem Al Noaimi Hazem Al Nowais Chief Executive Officer and Managing Director Chief Operating Officer Waha Land / Industrial Real Estate Previously Deputy CEO of Waha Capital and CEO of Waha Leasing Pre
Slide 9: Mission and Strategy
Mission and Strategy To be the pre-eminent investment company in the region, with clear earnings visibility Grow business in the UAE and regionally by seeking investments in Principal high growth sectors, including healthcare, education and energy Investments Acquire companies with first class m
Slide 10: Abu Dhabi Economic Snapshot
Abu Dhabi Economic Snapshot Waha Capital benefits from its location in Abu Dhabi, a politically stable and growing economy with substantial wealth and an ambitious economic plan Key Economic Indicators Contributors to Abu Dhabi’s Nominal GDP (2013) Nominal GDP (2013) USD 259bn Financial Manufacturin
Slide 11: Business Highlights
Business Highlights All Rights Reserved © Waha Capital 2014
Slide 12: Core Businesses
Core Businesses Principal Investments Capital Markets Industrial Real Estate Page 12
Slide 13: Core Businesses
Core Businesses Principal Investments Capital Markets Industrial Real Estate Page 13
Slide 14: Principal Investments - Overview
Principal Investments - Overview The Principal Investments team manages Waha Capital’s core investments, which consist of AerCap, Dunia Finance, Anglo Arabian Healthcare, Stanford Marine Group, MENA Infrastructure Fund and National Petroleum Services Overview 2013 & YTD Transactions Waha Capital’s
Slide 15: Principal Investments - AerCap
Principal Investments - AerCap AerCap, a NYSE-listed aircraft leasing company, contributes significant income to Waha Capital; AerCap has continuously outperformed its global peers since Waha’s acquisition in 2010 Overview Aircraft Portfolio Characteristics vs. Peers Stable and healthy industry wi
Slide 16: Principal Investments - AerCap (2)
Principal Investments - AerCap (2) Despite the recent run-up of AerCap’s share price as a result of the ILFC transaction announcement, analysts continue to see upside in the stock AerCap Share Performance Since Acquisition Price to Earnings Evolution 58 ILFC 30.00 AER-US Announcement AER-US S&P 500
Slide 17: Principal Investments - Dunia Finance
Principal Investments - Dunia Finance Dunia Finance, a UAE consumer finance business that targets the underserved salaried mass and mass affluent market segments, has demonstrated rising profits and stable net interest margins Overview Loan Book Breakdown An Abu Dhabi-based consumer finance compan
Slide 18: Principal Investments – Anglo Arabian Healthcare
Principal Investments – Anglo Arabian Healthcare In 2013, Waha Capital made its initial investment into the UAE’s rapidly expanding healthcare market by acquiring Anglo Arabian Healthcare (AAH) Overview UAE Healthcare Market Size (USD bn) Build-up UAE healthcare company, with an initial focus on h
Slide 19: Principal Investments - Stanford Marine Group
Principal Investments - Stanford Marine Group SMG caters to the offshore oil and gas sector in the GCC, East Africa and South East Asia, with operations in offshore support vessel chartering, shipbuilding and repair, and crane leasing Overview Business Structure Waha Capital owns a 49% stake in on
Slide 20: Principal Investments - Infrastructure
Principal Investments - Infrastructure MENA Infrastructure Fund is recognized as one of the best performing infrastructure funds in the region; plan to launch Fund II in 2014 on the back of the success of the existing fund Overview Major Investments (74% of Deployed Capital) Established in 2007, M
Slide 21: Principal Investments - National Petroleum Services
Principal Investments - National Petroleum Services Waha Capital recently acquired a stake in NPS alongside a consortium. The transaction is part of Waha’s broader strategy of investing across the energy supply chain Overview Geographic Presence Headquartered in the UAE, NPS is a leading provider
Slide 22: Core Businesses
Core Businesses Principal Investments Capital Markets Industrial Real Estate Page 22
Slide 23: Capital Markets
Capital Markets Our broad Capital Markets teams are made up of former investment banking professionals, and focus on investing in capital market securities and advising clients with financial structuring Overview Business Structure The team focuses on 1. Investing in capital market securities (bon
Slide 24: Capital Markets (2)
Capital Markets (2) Investments within the Capital Markets business are driven by in-depth research, executed via a wide array of trading counterparties and governed by a strict risk management policy Areas of Focus In-Depth In House Research Research 360-degree qualitative and quantitative fundam
Slide 25: Core Businesses
Core Businesses Principal Investments Capital Markets Industrial Real Estate Page 25
Slide 26: Industrial Real Estate
Industrial Real Estate Phase I of ALMARKAZ has recently been completed with the development of 1.5 km2 of land and construction of 90,000 m2 of industrial space Overview ALMARKAZ Location Map Waha Capital received a 6 km2 land grant from the Government of Abu Dhabi in 2007 for a mixed use industri
Slide 27: Financial Highlights
Financial Highlights All Rights Reserved © Waha Capital 2014
Slide 28: Waha Capital – 1H 2014 Financial Snapshot
Waha Capital – 1H 2014 Financial Snapshot Total Income Expenses Net Profit Return on Assets AED 1,529mn AED 238mn AED 1,289mn 23.5% Assets Debt Equity ROE AED 6.5bn AED 2.5bn AED 3.6bn 44.8% In AED mn 2011 2012 2013 1H 2014 Total Income 385 440 587 1,529 Expenses -217 -201 -282(1) -238(1) NCI and ot
Slide 29: Waha Capital - Assets & Net Income by Segment
Waha Capital - Assets & Net Income by Segment Waha Capital’s balance sheet is dominated by Principal Investments and Capital Markets, both being the major contributors to the company’s net income Balance Sheet Composition by Gross Assets (1H 2014) Net Income Attribution AED mn (1H 2014 and FY 2013)
Slide 30: Waha Capital - Performance vs. Peers
Waha Capital - Performance vs. Peers Waha Capital has outperformed its comparable listed peers across most metrics over the last 3 years Average ROE of 10% Average ROA of 5% 9.7% 10.0% 5.0% 3.6% 6.0% 0.5% Waha Capital PJSC Investcorp Bank BSC KIPCO Waha Capital PJSC Investcorp Bank BSC KIPCO Average
Slide 31: Stock Characteristics and Book Value
Stock Characteristics and Book Value All Rights Reserved © Waha Capital 2014
Slide 32: Waha Capital - Stock Snapshot
Waha Capital - Stock Snapshot Waha Capital’s stock, which has performed well recently, is relatively liquid vs. other Abu Dhabi stocks, and offers an attractive dividend yield Key Characteristics (as at 12 August 2014) Waha Capital’s Stock Rallied 288% in the Past Year Listing Date November 15, 2000
Slide 33: Breakdown of Book Value per Share
Breakdown of Book Value per Share Contribution by key assets and liabilities to book value per share (AED) H1 2014 BVPS 2.00 1.80 1.86 1.50 1.00 0.50 0.35 0.22 0.16 0.14 0.07 0.03 - (0.04) (0.50) (1.00) (0.87) (1.50) Aercap Dunia AAH NPS Other Capital Industrial Real Corporate Net debt Book Value Ma