Shuaa Capital (p.s.c) · DFM:SHUAA

Shuaa Capital (p.s.c) — Q3 2021 Earnings Presentation

40 slides from Shuaa Capital (p.s.c)'s earnings presentation, November 2021

  1. Slide 1: Roadshow Presentation November 2021

    Ro a d s h o w P re s e n ta t i o n November 2021 Strictly Confidential © 2020 SHUAA Capital psc. All rights reserved

  2. Slide 2: SHUAA is a unique and diversified platform and offering in the region

    SHUAA is a unique and diversified platform and offering in the region Asset Class & Segment Offering Asset Management Investment Banking 13.1 $bn AUM1 Public Markets Private Markets Banking Markets Publicly listed securities Private equity investments and Strategic advisory services Sales & trading

  3. Slide 3: …with a wide geographic reach

    …with a wide geographic reach Europe Middle East & North Africa RE PUB PRV RE D IB MKT IM United Kingdom RE Kuwait MKT United Arab Emirates Saudi Arabia1 PUB PRV RE D IB MKT IM SHUAA Business Sub-Segments RE IB PUB PRV RE D IB MKT IM Core Markets SHUAA & Subsidiaries Office Locations 3 1 SHUAA Saudi

  4. Slide 4: We deliver uncompromising quality to our stakeholders

    Our strategy and vision is underpinned by several key strategic principles… Our Vision We create sustainable value for clients, employees and shareholders by engineering innovative investment solutions and differentiated product offerings for institutional clients and high net worth individuals. Our

  5. Slide 5: …and the associated levers to achieving them

    …and the associated levers to achieving them Strengthen and Diversify products and services Scale the platform and grow core businesses within core businesses operate more efficiently Expand regional footprint1 Grow fixed income platform Increase operational efficiency Grow asset management business

  6. Slide 6: We had a swift and decisive response to COVID-19

    We had a swift and decisive response to COVID-19  Issued the first high yield issuance in the MENA region since the onset of the COVID-19 – proceeds were used for Strengthened general corporate purposes and to strengthen the balance sheet Balance Sheet & Liquidity Position  Maintained sufficient l

  7. Slide 7: Robust governance and balance sheet strengthening initiatives

    Robust governance and balance sheet strengthening initiatives  Dynamic, experienced and best in class board and management Robust Governance  Company’s listed status improves transparency and visibility of activities  Improved geographical diversification; operations in the GCC (core markets bein

  8. Slide 8: 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

  9. Slide 9: Q3 2021 Financial Review

    Q3 2021 Financial Review

  10. Slide 10: 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

  11. Slide 11: 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

  12. Slide 12: 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

  13. Slide 13: 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

  14. Slide 14: 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

  15. Slide 15: 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

  16. Slide 16: 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

  17. Slide 17: 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:

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: 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 20

  21. Slide 21: 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

  22. Slide 22: 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

  23. Slide 23: 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 23 1 Ad

  24. Slide 24: 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

  25. Slide 25: 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

  26. Slide 26: Appendix – Financial Statements

    Appendix – Financial Statements

  27. Slide 27: 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

  28. Slide 28: 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

  29. Slide 29: 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

  30. Slide 30: 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

  31. Slide 31: 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

  32. Slide 32: 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,

  33. Slide 33: 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

  34. Slide 34: 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

  35. Slide 35: Appendix – Board of Directors & Management Team

    Appendix – Board of Directors & Management Team 35

  36. Slide 36: Steered by a strong and diversified Board of Directors

    Steered by a strong and diversified Board of Directors Fadhel Alali – Chairman  Fadhel Alali is currently Deputy CEO and Group Chief Operating Officer of First Abu Dhabi Bank (FAB). Prior to joining FAB in 2017, Mr. Alali was the CEO of Dubai Holding, a global group with assets of USD 35 billion 

  37. Slide 37: …and led by an experienced executive and senior management team

    …and led by an experienced executive and senior management team Jassim Alseddiqi Bechara Raad Joachim Mueller Bachir Nawar Walid El-Hindi Chief Executive Chief Operating Chief Financial & Chief Legal & CEO of Real Estate Officer Officer Risk Officer Compliance Officer  Chairman of GFH Financial  3

  38. Slide 38: 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

  39. Slide 39: 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

  40. Slide 40: SHUAA Capital psc

    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

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