Amlak Finance Pjsc · DFM:AMLAK
Amlak Finance Pjsc — Q3 2017 Earnings Presentation
38 slides from Amlak Finance Pjsc's earnings presentation, September 2017
Slide 1: Amlak Finance PJSC Investor Presentation
Amlak Finance PJSC Investor Presentation September 2017
Slide 2: Disclaimer
Disclaimer This presentation has been produced by the management of Amlak Finance PJSC (“Amlak” or the “Company”), solely for use at various teleconference arranged for existing/prospective institutional investors and for their clients/potential clients and shall not be reproduced or redistributed,
Slide 3: Sections
Sections 1 Amlak at a Glance Company Profile 4 Through The Years 5 2 Strategic Focus Key Strategies 7 Strategic Enablers 8 Business Overview 9 Segment Strategy – REF 10 Segment Strategy – REI 11 Segment Strategy – CFI 12 3 2017 Financial Highlights Group Income Statement 14 Group Balance Sheet 15 4
Slide 4: Amlak at a Glance: Company Profile
Amlak at a Glance Company Profile Background • Amlak Finance PJSC was incorporated in Dubai, United Arab Emirates, on 11 November 2000 as a Private Shareholding Company. • At the constituent shareholders meeting held on 9 March 2004, a resolution was passed to convert the Company to a Public Joint S
Slide 5: Amlak at a Glance: Through The Years
Amlak at a Glance Through The Years 43% drop in Liabilities and Share Capital Growth, expansion and Commitments by AED 8 Bn Reported profit of increase by 6 times to diversification AED 750 Mn Total assets reaching AED AED 139 Mn 21 Bn Real estate investment Share Capital reaching AED 6 Bn Successfu
Slide 6: Strategic Focus
Strategic Focus
Slide 7: Key Strategies
Strategic Focus Key Strategies Strategic Priorities Strategic Intents Strategic Metrics Adherence to • Ensuring full compliance with and adherence to restructuring agreement signed with financiers Restructuring Compliance Agreement • Flawless implementation of restructuring milestones • Build up rea
Slide 8: Strategic Enablers
Strategic Focus Strategic Enablers Our Vision (What we aim to become?) Product Differentiation “To be a specialized and customer centric Regional & Customer Focus real estate Political Stability financing institution in the UAE” Our Mission (What is our purpose?) Cost Strategic New Customer “To prov
Slide 9: Business Overview
Strategic Focus Business Overview Amlak’s overall business is being managed by way of 3 segments Business Segments Real Estate Investment Corporate Finance Segment Asset Mix – Sep 2017 Real Estate Finance (REF) (REI) and Investment (CFI) Under Construction Ready Property • Includes investment • Incl
Slide 10: Segment Strategy - REF
Strategic Focus Segment Strategy - REF Real Estate Finance (REF) Ready Property Year End Year End Key Metrics Indicator Continue to pursue investors through investor related products 2016 2017 Cross-sell to existing customers Profit Rate 6% 6% Maintain Offer innovative products and address und
Slide 11: Segment Strategy - REI
Strategic Focus Segment Strategy - REI Real Estate Investment (REI) Focus on exit from REI after full redemption of Mudaraba Instrument Year End Year End (Contingent Convertible Instrument - CCI). This is expected to be Key Metrics Indicator 2016 2017 achieved through enhancement of land parcel va
Slide 12: Segment Strategy - CFI
Strategic Focus Segment Strategy - CFI Corporate Finance and Investment (CFI) Focus on enhancing the value of core assets (especially Year End Year End Amlak KSA) by holding these performing investments for a Key Metrics Indicator 2016 2017 longer duration with the view to sale as and when appropr
Slide 13: 2017 Financial Highlights
2017 Financial Highlights
Slide 14: Group Income Statement
2017 Financial Highlights Group Income Statement AED in Mn Q3 2017 vs. Q3 2016 Sep 2017 vs. Sep 2016 Particulars Q3 2017 Q3 2016 Sep 2017 Sep 2016 Variance Change in % Variance Change in % Income from Financing and Investing assets 47 50 (3) -6% 143 155 (12) -8% Rental income 15 15 - 0% 45 42 3 7% S
Slide 15: Group Balance Sheet
2017 Financial Highlights Group Balance Sheet AED in Mn Sep 2017 vs. FY 2016 Particulars Sep 2017 FY 2016 Variance Change in % Cash and Balances with Banks 610 621 (11) -2% Islamic Financing and Investing Assets 3,332 3,220 112 3% Real Estate Investments 2,275 2,167 108 5% Corporate Investments 309
Slide 16: Full Year Financial Highlights
Full Year Financial Highlights
Slide 17: Full Year Group Income Statement
Full Year Financial Highlights Group Income Statement AED in Mn Change in % Particulars FY 2016 FY 2015 FY 2014 2016 vs. 2015 2015 vs. 2014 Income from financing and Investing assets 207 297 377 -30% -21% Rental income 56 46 34 22% 35% Share of results of an associate 28 25 22 12% 14% Sale of proper
Slide 18: Group Income Statement (cont'd)
Full Year Financial Highlights Group Income Statement (cont’d) AED in Mn Income from Financing Total Income Rental Income and Investing Assets 1,000 400 60 350 377 50 56 500 778 532 300 46 40 - 250 297 2014 2015 2016 200 30 34 (500) 150 207 20 (1,000) 100 (1,663) 10 (1,500) 50 - - (2,000) 2014 2015
Slide 19: Full Year Group Balance Sheet
Full Year Financial Highlights Group Balance Sheet AED in Mn Change in % Particulars FY 2016 FY 2015 FY 2014 2016 vs. 2015 2015 vs. 2014 Cash and Balances with Banks 621 606 498 2% 22% Islamic Financing and Investing Assets 3,220 3,460 4,265 -7% -19% Real Estate Investments 2,167 2,411 2,165 -10% 11
Slide 20: Group Balance Sheet (cont'd)
Full Year Financial Highlights Group Balance Sheet (cont’d) AED in Mn Real Estate Investments Corporate Investments Assets Mix – 2016 621 3,000 350 184 9% 3% 2,500 300 292 308 301 2,000 250 301 2,411 5% 2,165 2,167 200 1,500 3,220 150 50% 1,000 100 2,167 500 50 33% - - 2014 2015 2016 2014 2015 2016
Slide 21: Financial Ratios
Full Year Financial Highlights Financial Ratios Highlights Net Financing to Deposit Ratio Key Ratios FY 2016 FY 2015 FY 2014 90% Net Financing to Deposit 80% Ratio 68% 70% 80% 70% 80% Non-Performing Financing Asset to Total Asset Ratio 9% 8% 10% 60% 70% 68% Liquid Assets to Total 50% Assets 11% 7% 4
Slide 22: Financial Ratios (cont'd)
Full Year Financial Highlights Financial Ratios (cont’d) Return on Equity (ROE) Return on Average Assets (ROA) 9% 3% 8% 7% 8% 2% 2% 2% 6% 7% 2% 5% 4% 1% 3% 4% 1% 2% 1% 1% 0% 0% 2014 2015 2016 2014 2015 2016 Net Profit Margin Cost to Income Ratio 4% 45% 3% 40% 3% 35% 40% 43% 3% 3% 30% 2% 35% 25% 2% 2
Slide 23: Awards
Awards
Slide 24: 2015 – 2017 Awards
2015 – 2017 Awards 2015 2016 2017 1. Dubai Chamber’s CSR Label 2016 1. Dubai Chamber’s CSR Label 2015 2. Best Islamic Finance CSR Company UAE 2016 2. Finance Monthly CEO Award 2015 3. Best Sharia Compliant Property Finance Company 1. Best Sharia Compliant Property Finance UAE 2016 Company 3. Finance
Slide 25: Appendix
Appendix
Slide 26: Interim Consolidated Statement of Income
Appendix Interim Consolidated Statement of Income AED ‘000 Change in % Particulars Q3 2017 Q3 2016 Sep 2017 Sep 2016 Sep 2017 vs. Sep 2016 Income from Islamic financing and investing assets 45,623 49,744 137,978 150,034 -8% Fee income 1,095 763 4,522 5,160 -12% Income on deposits 1,612 1,985 4,848 5
Slide 27: Interim Consolidated Statement of Financial Position
Appendix Interim Consolidated Statement of Financial Position AED ‘000 Change in % Particulars Sep 2017 FY 2016 Sep 2017 vs. FY 2016 ASSETS Cash and balances with banks 610,055 620,502 -2% Islamic financing and investing assets 3,332,298 3,219,711 3% Available-for-sale investments 12,890 7,688 68% A
Slide 28: Full Year 2016 Consolidated Statement of Income
Appendix Full Year 2016 Consolidated Statement of Income AED ‘000 Change in % Particulars FY 2016 FY 2015 FY 2014 2016 vs. 2015 2015 vs. 2014 Income from Islamic financing and investing assets 200,493 290,756 368,128 -31% -21% Fee income 6,119 6,622 8,471 -8% -22% Income on deposits 7,135 4,173 4,55
Slide 29: Full Year 2016 Consolidated Statement of Financial Position
Appendix Full Year 2016 Consolidated Statement of Financial Position AED ‘000 Change in % Particulars FY 2016 FY 2015 FY 2014 2016 vs. 2015 2015 vs. 2014 ASSETS Cash and balances with banks 620,502 606,440 497,736 2% 22% Islamic financing and investing assets 3,219,711 3,459,713 4,264,502 -7% -19% A
Slide 30: Board of Directors
Appendix Board of Directors Mr. Ali Ibrahim Mohammad Mr. Essamuddin Galadari Mr. Saleh Saeed Lootah Chairman Vice-Chairman Board Member Mr. Farooq Mahmood Arjomand Mr. Hesham Abdulla Al Qassim Major General Ahmad Hamdan Bin Dalmook Mr. Arif Alharmi Board Member Board Member Board Member Managing Dir
Slide 31: Stakeholders Priorities
Appendix Stakeholders Priorities Dividend Share Price Return on Equity Restructuring Quality service Shareholders agreement Innovative Liability products management Differentiation Customers Financiers Covenants Public relations Compliance - Transparency Regulators Sharia/Reg
Slide 32: Products and Services
Appendix Products and Services Istithmari is the first-of-its-kind Buy-To-Let property finance (Ijarah) product in the region, designed for investors looking Istithmari to invest in completed residential and commercial properties. Customers are also provided with a complimentary full suite of Proper
Slide 33: General Economic Indicators - UAE and Dubai Economy
Appendix General Economic Indicators - UAE and Dubai Economy Economic growth in the UAE is expected to increase to at least 3 percent in the medium term on the back of Expo 2020, according to Bank of America Merrill Lynch’s GEMs Macro monthly report. Dubai’s population stood at 2.8 million at th
Slide 34: General Economic Indicators - Key Economic Indicators
Appendix General Economic Indicators - Key Economic Indicators 1 Brent OPEC Oil Basket Price in UAE (AED) Distribution of GDP Sectors (in %) – UAE & Dubai 2016 450 400 383 397 UAE Dubai 27.5 353 30 23.2 350 22.1 300 25 17.2 16.7 As of % 15.6 250 219 221 20 12.8 193 204 207 204 13 10.6 10.5 184 10.1
Slide 35: General Economic Indicators - Dubai Real Estate Market
Appendix General Economic Indicators - Dubai Real Estate Market The number of sales transactions have dropped down from 4,043 in Q1 2017 to 3,532 in Q2 2017. However, when compared to Q2 2016 the value of sales transactions have increased by 7% in Q2 2017. Even though there was a 13% decline in th
Slide 36: General Economic Indicators - Key Real Estate Indicators
Appendix General Economic Indicators - Key Real Estate Indicators Number and Value of Real Estate Transactions Dubai Residential Sales and Rental Price Changes Number of Sales Transactions Value of Sales Transactions Sales Price (AED/Sqf) Rent Price (AED/Sqf/Annum) Rent Price (AED/Sqf/Annum) 5,000 9
Slide 37: General Economic Indicators - Dubai Mortgage Market
Appendix General Economic Indicators - Dubai Mortgage Market The number and value of Mortgage transactions Mortgage Transactions Over the Years increased by 15% and 3% respectively in Q2 2017 Number of Mortgage Transactions Value of Mortgage Transactions when compared to Q2 2016. Even though the 2
Slide 38: Investor Relations
Contact Investor Relations Phone: +971 4 4274500 Web: http://www.amlakfinance.com/en/investor-relations.html Email: InvestorRelations@amlakfinance.com P O Box: 2441, Dubai, United Arab Emirates