Shuaa Capital (p.s.c) · DFM:SHUAA
Shuaa Capital (p.s.c) — Q4 2021 Earnings Presentation
28 slides from Shuaa Capital (p.s.c)'s earnings presentation, Mar 29, 2022
Slide 1: Earnings Presentation Q4 2021
Earnings Presentation Q4 2021 29 March 2022 Strictly Confidential © 2022 SHUAA Capital psc. All rights reserved
Slide 2: Q4 2021 & FY 2021 Highlights
Q4 2021 & FY 2021 Highlights Record result reflecting strong core business performance § Net income attributable to shareholders at AED24m for FY 2021, loss of AED64mm for Q4-21 – delta of AED16m negative versus preliminary net income due to finalization of a single valuation adjustment § One-off im
Slide 3: Net Profit
Net Profit Quarter-on-Quarter & Year-on-Year Net Profit1 Commentary AEDm (101) (81%) 2021 FY profitability negatively impacted by valuation adjustments in Q4-22 125 • One-off charges of AED203m mainly 62 relating to acceleration of 35 24 restructuring of a legacy, illiquid investment portfolio • EBI
Slide 4: Adjusted net operating income
Adjusted net operating income Year-on-year adjusted operating income1 Commentary AEDm +29% 104 +26% Strong progress on adjusted net operating income shows progress 81 towards higher quality revenues 64 § Net fee and commissions up 21% year on year to AED265m § Operating expenses up 6% year on year d
Slide 5: Revenue Breakdown
Revenue Breakdown Quarter-on-Quarter & Year-on-Year Revenues Commentary (144) AEDm (27%) 539 394 286 Recurring revenues continue to contribute the majority of the revenue 111 base 255 § Continued positive contribution from recurring management fee base across all segments Other 199 Income 253 284 §
Slide 6: Recurring Revenues
Recurring Revenues Quarter-on-Quarter Recurring Revenue Base Commentary 160 120% 140 100% 97% 97% 100% Continued strong predictability of revenue streams in line with our strategy 120 79% 80% 100 § Average quarterly fee & trading income Revenue (AEDm) 62% up from AED63m in 2020 by 12% to 80 60% AED7
Slide 7: Expense Breakdown
Expense Breakdown Quarter-on-Quarter & Year-on-Year Expenses Commentary AEDm 18m 6% 315 297 66 79 Cost discipline maintained as targeted investments into expanding workforce 76 made 72 18 5 § Staff costs have increased due to 124 117 significant hiring initiatives across the 22 Other 31 platform to
Slide 8: Addressable Cost Base
Addressable Cost Base Addressable Cost Base1 – By Expense Type Commentary AEDm 1m 240 241 10 27 76 Addressable cost base remains flat despite 72 investments into workforce 91 81 § Q4-21 staff cost increase related to bonus Other 21 4 141 156 accruals Op. Expense 16 21 47 G&A 16 § G&A remained flat q
Slide 9: 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 67m (80%) Significant fair value gains in portfolios allowed for proactive valuation impairments 38 on individual, illiquid portfolio 7 153 250 26 8 5
Slide 10: Segmental Performance
Segmental Performance Asset Management Investment Banking Corporate AEDm AEDm AEDm 257 109 13 86 9 89 96 6 57 26 21 21 0 EBITDA (48) (1) Q4 20 Q3 21 Q4 21 FY 20 FY 21 Q4 20 Q3 21 Q4 21 FY 20 FY 21 Q4 20 Q3 21 Q4 21 FY 20 FY 21 Revs. 34 45 57 148 211 3 4 13 26 29 217 18 16 365 154 Net 50 20 (82) 79 (
Slide 11: Asset Management Segment Performance
Asset Management Segment Performance Asset Management Commentary AEDm 109 Increased profitability driven by strong performance in core funds 86 Real Estate: § Continued contribution from recurring revenue and management fee § Investment in build-up of asset management team as part of growth 26 strat
Slide 12: Investment Banking Segment Performance
Investment Banking Segment Performance Investment Banking Commentary AEDm Turn around achieved: Returned to profitability, invested in growth, arranged landmark transactions 13 Banking: § Marque transactions (e.g. Anghami SPAC, 9 DXB Entertainments debt conversion) contributed to solid advisory reve
Slide 13: Corporate Segment Performance
Corporate Segment Performance Corporate Commentary AEDm 257 Strong performance on consolidated fund and CFD business impacted by valuation impairment on single portfolio 89 96 57 • NCM contribution remained at elevated level • Strong FV gains and dividend distribution from consolidated fund -48 EBIT
Slide 14: AuM levels impacted by portfolio adjustments
AuM levels impacted by portfolio adjustments AuM Evolution Commentary US$m (921m) (7%) Decrease in Aum driven by exits, fx movements and valuation impairment on real estate portfolio § Pipeline of funds, investments and initiatives to drive net new money going 13,943 forward with focus on profitabil
Slide 15: Significant progress on non-core asset reduction in Q4 2021
Significant progress on non-core asset reduction in Q4 2021 Non-Core Unit Evolution Commentary AEDm 76% 188m Non-core unit (NCU) reduced significantly since inception (113) § Overall cash proceeds of (19) AED188m generated since July 2019 (56) § NCU closed in Q4 2021 403 and residual assets transfer
Slide 16: Continued progress on de-leveraging
Continued progress on de-leveraging Leverage Ratio Breakdown Commentary AEDm § Continued disciplined approach 134% to deleveraging with leverage ratio at 134% 2,474 874 Other liabilities 148 § Q4 2021 leverage ratio is currently Payables 341 14%-points below the pre- 97% 1,846 pandemic level of 146%
Slide 17: Reiterating annual targets
Reiterating annual targets Integration Transformation FY 2019 FY 2020 FY 2021 Medium-term ambition Long-term ambition 5.2% 8.5% 1.7% > 15% Return on Equity Return on Equity Return on Equity 7-12% Return on Equity Return on Equity 87% 55% 77% < 60% Cost Income Cost Income Cost Income Cost Income Rati
Slide 18: Appendix
Appendix
Slide 19: Quarterly P&L (Q4 2020-Q4 2021)
Quarterly P&L (Q4 2020-Q4 2021) Q4 FY Q1 Q2 Q3 Q4 FY AED '000 2020 2020 2021 2021 2021 2021 2021 Interest income 4,195 18,646 3,755 4,198 2,378 2,803 13,134 Interest expense 348 (3,766) (1,112) (1,656) (1,880) (1,288) (5,936) Net interest income 4,542 14,880 2,643 2,542 498 1,515 7,198 Fee and commi
Slide 20: Balance Sheet Summary (2019-2021)
Balance Sheet Summary (2019-2021) AED '000 31-Dec 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 2021 2020 2020 2020 2020 2019 2019 2019 2019 Assets Cash and deposits with banks 460,648 391,614 321,200 353,566 416,975 329,863 327,993 293,701 360,193 297,8
Slide 21: Segmental Financials FY 2021
Segmental Financials FY 2021 Public Private Asset Investment Investment Principal AED '000 Real Estate Debt Banking Markets Non-core Others Corporate FY 2021 Markets Markets Management Management Banking investment Net fee and commission income 125,103 68,427 5,899 11,324 210,753 0 1,284 3,195 4,478
Slide 22: Segmental Financials Q4 2021
Segmental Financials Q4 2021 Public Private Asset Investment Investment Principal AED '000 Real Estate Debt Banking Markets Non-core Others Corporate Q4 2021 Markets Markets Management Management Banking investment Net fee and commission income 27,610 26,884 1,061 4,788 60,343 0 120 420 541 (4,939)
Slide 23: 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 98 1,493 1,591 11,24
Slide 24: 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 25: 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
Slide 26: 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 27: 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 28: 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