Saudi Tadawul Group Holding Company · TADAWUL:1111
Saudi Tadawul — Q1 2023 Earnings Presentation
37 slides from Saudi Tadawul's earnings presentation, Apr 17, 2023
Slide 1: Q1 2023 Financial Results
Q1 2023 Financial Results April 17, 2023 Saudi Tadawul Group - Q1 2023 Financial Results 0
Slide 2: Speakers
Speakers Eng. Khalid Alhussan Shahrukh Qureshi Lee Hodgkinson Haitham Al Shathri Group Chief Executive Officer Group Chief Financial Officer Group Chief Strategy Officer Group Investor Relations Head Saudi Tadawul Group - Q1 2023 Financial Results 1
Slide 3: Key Performance Review
4 Key Performance Review
Slide 4: Key Market Highlights
Key Market Highlights (As of March 2023) Foreign Ownership 10,023.2 $2,672.85 224 54 Main Market & Nomu - Parallel Market (SAR Billion) (USD Billion) (Main Market) (Nomu Market) 4.0% 1.4% Market Capitalization Listed Entities(1) Main Market & Nomu - Parallel Market Main Nomu of Free Float Market Mar
Slide 5: Key Financial Performance Indicators
Key Financial Performance Indicators (As of 31 March 2023) Operating Revenues Evolution 211.3 $56.3 28.1% ▼ 45.6 $12.1 359.3% ▲ (SAR Million) (SAR Million) (USD Million) Y-o-Y (SAR Million) (USD Million) Y-o-Y Operating Revenues Investment Income -28.1% Y-o-Y 68.9 $18.4 58.7% ▼ 172.9 $46.1 3.8% ▼ -1
Slide 6: Business Performance Review
Business Performance Review
Slide 7: Equity Fixed Income & Derivatives
Equity Fixed Income & Derivatives Key Highlights Key Highlights (Main Market & Nomu - As of March 2023) (As of March 2022) 278 15.83% ▲ Total Listed entities Y-o-Y vs 240 Number of Listed Sukuk & Bonds (incl. REITs) 7,044.69 (SAR Million) 252.29 $67.28 5 Sukuk/Bonds Value Capital Raised (1) (SAR Mil
Slide 8: Edaa Muqassa WAMID
Edaa Muqassa WAMID Key Highlights Key Highlights Key Highlights (As of March 2023) (As of March 2023) (As of March 2022) Innovation / Growth Focus Areas have been identified Cash Market Derivatives Repo Depository Registry Settlement Safekeeping focusing on Data, AI, Market Infrastructure and Cleari
Slide 9: Saudi Capital Market Forum 2023
SAUDI CAPITAL MARKET FORUM 2023 The Saudi Capital Market Forum 2023 exceeded 2022 numbers and established itself as one of the largest capital market conferences in the region. 2,085 In-person meetings between investors and Saudi corporates 331 Investors from 134 firms represented 2.3M+ Views of the
Slide 10: Saudi Capital Market Forum 2023
SAUDI CAPITAL MARKET FORUM 2023 The second edition of the Saudi Capital Market Forum brought together issuers, investors, private companies, government entities and financial institutions to explore key issues facing the industry and the evolution of global capital markets, as well as showcase the e
Slide 11: Financial Performance Review
Financial Performance Review
Slide 12: Average Daily Trading Value "ADTV"
Average Daily Trading Value “ADTV” (Main Market, SAR Billion) ADTV Yearly Evolution ADTV Quarterly Evolution 7.5% -23.0% -50.3% Y-o-Y Y-o-Y Y-o-Y -26.6% -20.7% -12.2% Q-o-Q Q-o-Q Q-o-Q 8.9 8.3 6.9 8.5 8.2 6.1 4.8 4.2 FY 2020 FY 2021 FY 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Saudi Tadawul Group
Slide 13: Approximately 48% of operating revenue was non-trading driven vs 33% a year ago
Approximately 48% of operating revenue was non-trading driven vs 33% a year ago on the back of lower ADTV and higher Data & Technology Services Q1 23 Q1 22 Non-ADTV ADTV Revenue Revenue (SAR million) Operating Y/Y 48% 52% 211.3 -28.1% 293.9 Revenue Trading services 49.7 -49.8% 99.0 Data & technology
Slide 14: Operating revenue has decreased by 28.1% YoY
Operating revenue has decreased by 28.1% YoY predominantly due to the decrease in trading values which contracted by 50.3%. Q1 23 Q1 22 Post-Trade Capital Market (SAR million) Y/Y 51% 34% Segmental 211.3 -28.1% 293.9 Revenue Capital Markets 72.3 -40.4% 121.3 Data & Technology 31.5 27.8% 24.6 Service
Slide 15: EBITDA decreased 59% YoY reaching SAR 68.9 million
EBITDA decreased 59% YoY reaching SAR 68.9 million in Q1 2023 compared to SAR 166.8 million in Q1 2022, due to the decrease in the Group’s operating revenue against growth in the Group’s operating expenditures. Operating Expenditures excl. D&A EBITDA & EBITDA Margin (SAR Million) (SAR Million) 56.8%
Slide 16: 359% increase in investment income YoY
359% increase in investment income YoY is attributed to the higher interest rates market levels and collateral margins funds invested at SAMA, the Saudi central bank Investment Portfolio Size Investment Income and Collateral Interest - Net (SAR million, As of March 2023) (SAR million, As of 31 March
Slide 17: Net Income After Zakat at SAR 90.8m with margin of 43%
Net Income After Zakat at SAR 90.8m with margin of 43% in Q1 2023 and SAR 140.6m with margin of 48% in Q1 2022 Net Profit After Zakat & Margin Return on Average Equity (SAR million, As of 31 March 2023) (Annualized) 47.8% 46.2% 34.7% 43.0% 25.7% -35.4% -36.7% Y-o-Y Y-o-Y -36.2% -36.7% 54.4% 58.8% Q-
Slide 18: Net Profit After Zakat Movement
Net Profit After Zakat Movement Q1 2023 Vs. Q1 2022 (SAR million, As of 31 March 2023) 140.6 (98.7) 50.1 (3.0) 90.8 5.2 12.1 10.8 10.5 (2.4) Net Income After ADTV Revenue Impact of New Non-ADTV Revenue Recurring Cost Manpower Non-Recurring Cost Investment and Zakat Net Income After Zakat Q1 2022 Fee
Slide 19: Strong Cash Flow Conversion Exceeding 251%
Strong Cash Flow Conversion Exceeding 251% Free Cash Flow Waterfall – Q1 2023 12.0 $3.2 125.1% ▲ (SAR million) (SAR Million) (USD Million) Y-o-Y (12.0) 172.9 Capital Expenditure 58.3 58.3 $15.5 453.8% ▲ 57.7 (SAR Million) (USD Million) Y-o-Y 68.9 Change in Net Working Capital 5% 61.9% ▼ EBITDA Cash
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: A Differentiated Capital Markets Leader
Saudi Tadawul Group – A Differentiated Capital Markets Leader 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 bridg
Slide 23: Vertically Integrated and Diversified Business Model
Vertically Integrated and Diversified 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 instruments from a market developmen
Slide 24: 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 7 Key Listing & Trading Clearing Depository Performance & Information Digitalisation Expansion Capabilities
Slide 25: Key Investment Highlights
Key Investment Highlights National Champion and Integral to Vision 2030 Differentiated Business Model - Integrated, Scalable, Diverse Undisputed Centre for Regional Capital Formation Superior Financial Performance Seasoned Leadership Team with Track Record of Delivery Massive Growth Oppo
Slide 26: KSA is a Reformed Economy with Increased Focus on Privatizations and Listings
KSA is a Reformed Economy with Increased Focus on Privatizations 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 be privatised • STG is collabo
Slide 27: Sustainability / ESG
Sustainability / ESG 21% of listed companies on the Main Market issuing 43% of our employees are below 30 years of age The Group has identified the following six of the SDG targets comprehensive ESG disclosure to focus on out 17 goals in its sustainability programs 27% women occupying C-Level positi
Slide 28: A History of Innovation and Execution
A History of Innovation and Execution … 2022 • Largest upgrades in Saudi capital market and launch PTTP • Began as an informal • Launch WAMID co-location service financial market • The launch of Single Stock Futures (SSF) • Introduction of QFI program • First Dual Listing in GCC • Deployment of Nasd
Slide 29: Coupled with a Highly Accomplished Board of Directors
… Coupled with a Highly Accomplished Board of Directors Saudi Tadawul Group - Q1 2023 Financial Results 28
Slide 30: Seasoned and Visionary Management Team
Seasoned and Visionary Management Team Group Management Subsidiary CEOs Saudi Tadawul Group - Q1 2023 Financial Results 29
Slide 31: P&L Snapshot
P&L Snapshot SAR million, Q1 2023 Q1 2022 Y-o-Y Change Operating revenue 211.3 293.9 28.1% ▼ Operating expenses 142.4 127.1 12.0% ▲ EBITDA 68.9 166.8 58.7% ▼ EBITDA margin 33% 57% Depreciation & amortization 17.6 12.6 39.4% ▲ EBIT 51.3 154.2 66.8% ▼ EBIT margin 24% 52% Investment income & other inco
Slide 32: Financial Position Snapshot
Financial Position Snapshot SAR million, Q1 2023 Q1 2022 Y-o-Y Change Cash & cash equivalents 2,054.5 101.4 1926.0% ▲ Investments 1,250.8 2,835.0 55.9% ▼ Other assets 4,523.6 2,672.6 69.3% ▲ Total assets 7,829.0 5,609.0 39.6% ▲ Total liabilities 4,558.5 2,375.9 91.9% ▲ Total equity 3,270.5 3,233.1 1
Slide 33: Listings in Q1 2023
Listings in Q1 2023 # Issuer Name Market Size (shares and units) Closing Date Note 1 Alqemam for Computer Systems Co. Nomu Market Direct Listing - Listed on 30-Jan-2023 2 Waja Co. Nomu Market 455,000 19-Feb-2023 Listed on 08-Mar-2023 3 Knowledge Net Company Nomu Market 700,000 02-Mar-2023 Listed on
Slide 34: Current IPO Pipeline
Current IPO Pipeline # Issuer Name Market Size (shares and units) Closing Date Note 1 Meyar Co. Nomu Market 265,400 23 Mar 23 Approved by CMA 2 Saudi Lime Industries Co. Nomu Market 2,000,000 23 Mar 23 Approved by CMA 3 Saudi Call Trading Nomu Market 675,000 - Approved by CMA * 4 Abdul Aziz Al-Tuwai
Slide 35: Current IPO Pipeline (cont'd)
Current IPO Pipeline (cont’d) # Issuer Name Market Size (shares and units) Closing Date Note 14 Saudi Equity Growth Traded Fund CEF Main Market 265,400 - Approved by CMA * 15 Al Watania for Industries Company Main Market 24,000,000 - Approved by CMA * 16 Jamjoom Pharmaceuticals Factory Company Main
Slide 36: 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 37: 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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