Shuaa Capital (p.s.c) · DFM:SHUAA
Shuaa Capital (p.s.c) — Q1 2022 Earnings Presentation
25 slides from Shuaa Capital (p.s.c)'s earnings presentation, May 12, 2022
Slide 1: Earnings Presentation Q1 2022
Earnings Presentation Q1 2022 12 May 2022 © 2022 SHUAA Capital psc. All rights reserved
Slide 2: Q1 2022 Executive Summary
Q1 2022 Executive Summary Continued stability of the recurring revenue base § Continued profitability: Q1 2022 net profit attributable to shareholders of AED 6 million versus AED 25m in Q1 2021. Profitability was affected by a one-off accelerated write-down of Intangible Assets of net AED 31 million
Slide 3: Net Profit
Net Profit Quarter-on-Quarter Net Profit1 Commentary AEDm (19) (78%) Q1 2022 net profit at AED6m, ahead of Q4 35 29 25 2021. 6 § Net profit reduced by AED 31m accelerated amortization of an intangible asset. Excluding this effect, net profit would have been AED 37m. (64) § The Group maintained posit
Slide 4: Revenue Breakdown
Revenue Breakdown Quarter-on-Quarter Revenues Commentary AEDm (23) (12%) 102 Recurring revenues continue to 3 89 contribute the majority of the revenue 3 base 67 67 Other 4 6 63 § Continued positive contribution from Income 2 recurring management fee base 99 across all segments 86 § Particularly str
Slide 5: Recurring Revenues
Recurring Revenues Quarter-on-Quarter Recurring Revenue Base Commentary 120 120% 100% 100 97% 100% 94% Continued strong predictability of revenue streams in line with our strategy 80 80% 71% Revenue (AEDm) 62% § Whilst there is variability in the quarterly 60 60% recurring revenue as a % of total %
Slide 6: Expense Breakdown
Expense Breakdown Quarter-on-Quarter Expenses3 Commentary AEDm 61 107% 121 118 18 Strong cost discipline despite targeted 17 investments into expanding workforce 59 81 Other 25 Expenses 15 57 § Staff costs increased from Q1 2021 due 48 to targeted hiring initiatives across the 15 G&A 23 11 20 platfo
Slide 7: Addressable Cost Base
Addressable Cost Base Addressable Cost Base1 – By Expense Type Commentary AEDm 4m 7% 78 17 58 56 Addressable cost base remains flat despite Other Op. Expense 3 52 investments into workforce 44 2 20 G&A 23 15 19 § Planned increase in staff costs whilst other 61 expenses are managed tightly Staff 40 C
Slide 8: Other Income Breakdown
Other Income Breakdown Quarter-on-Quarter Other Income2 Commentary AEDm Associates P&L Finance Costs Other Income/Exp FV Gains/Losses1 5 (21%) Q1 2022 negative other income at AED20m resulting from net fair value losses within the 71 listed portfolio 5 6 13 8 27 13 5 6 10 1 3 2 (23) (23) (23) (25) (
Slide 9: Segmental Performance
Segmental Performance Asset Management Investment Banking Corporate1 AEDm AEDm AEDm 72 45 56 57 30 8.7 26 21 5.2 18 1.3 10 (0.5) (0.3) (48) EBITDA Q2 21 Q3 21 Q4 21 Q1 21 Q1 22 Q2 21 Q3 21 Q4 21 Q1 21 Q1 22 Q2 21 Q3 21 Q4 21 Q1 21 Q1 22 Revs. 35 45 57 74 38 9 4 13 3 5 22 18 (7) 25 46 Net 18 20 (82)
Slide 10: Asset Management Segment Performance
Asset Management Segment Performance Asset Management Commentary AEDm 45 Steady quarter with stable recurring fee base Real Estate: 26 § Continued contribution from recurring 21 revenue and management fee EBITDA 18 § Intangible impairment of AED34m § New strategy to be launched in Q2 10 Public Marke
Slide 11: Investment Banking Segment Performance
Investment Banking Segment Performance Investment Banking Commentary AEDm Investment Banking segment performance 8.7 driven by the closures of transactions and deals 5.2 Banking: § Continued effects of cyclicality and timing of deal closures 1.3 § Strong pipeline of active deals and EBITDA mandates
Slide 12: Corporate Segment Performance
Corporate Segment Performance Corporate Commentary AEDm 72 56 57 30 Q1 2022 performance driven by: EBITDA § Significant contribution from consolidated online brokerage business (NCM) § Bringing on additional ownership for (48) individual assets held in Corporate Q2 21 Q3 21 Q4 21 Q1 21 Q1 22 segment
Slide 13: AuM levels subject to quarterly FX fluctuations
AuM levels subject to quarterly FX fluctuations AuM Evolution Commentary US$m (332) (3%) Slight decrease in total AuM in Q1 2022 § Decline mainly due to the weakness in 13,794 Sterling affecting UK real estate assets and exits of historic assets 13,454 § Pipeline of funds, investments and 13,051 13,
Slide 14: Continued progress on deleveraging
Continued progress on deleveraging Leverage Ratio Breakdown Commentary AEDm § Continued disciplined approach to deleveraging with leverage ratio at 112%. 112% § Average interest costs increased by 110 bps to 6.47% p.a. in Q1 2022 due to changes in borrowings composition 1,941 413 (Goldilocks classif
Slide 15: Reiterating annual targets
Reiterating annual targets Integration Transformation FY 2020 FY 2021 Q1 2022 Medium-term ambition Long-term ambition 8.5% 1.7% 1.5% > 15% Return on Equity Return on Equity Return on Equity 7-12% Return on Equity Return on Equity 55% 99% 73% < 60% Cost Income Cost Income Cost Income Cost Income Rati
Slide 16: Appendix
Appendix
Slide 17: Quarterly P&L (Q1 2021-Q1 2022)
Quarterly P&L (Q1 2021-Q1 2022)1 FY Q1 Q2 Q3 Q4 FY Q1 AED '000 2020 2021 2021 2021 2021 2021 2022 Interest income 18,646 3,755 4,198 2,378 2,803 13,134 5,491 Interest expense (3,766) (1,112) (1,656) (1,880) (1,288) (5,936) (2,115) Net interest income 14,880 2,643 2,542 498 1,515 7,198 3,377 Fee and
Slide 18: Balance Sheet Summary (2019-2022)
Balance Sheet Summary (2019-2022) AED '000 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 2022 2021 2021 2021 2021 2020 2020 2020 2020 2019 2019 2019 2019 Assets Cash and deposits with banks 348,586 460,648 391,614 321,200 353,566 416,975 329,863 327,993 2
Slide 19: Segmental Financials Q1 2022
Segmental Financials Q1 2022 Public Private Asset Investment Investment Principal AED '000 Real Estate Debt Banking Markets Non-core Others Corporate Q1 2022 Markets Markets Management Management Banking investment Net fee and commission income 22,927 7,298 6,293 1,062 37,580 0 75 410 486 42,098 1,3
Slide 20: 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 21: Segmental Financials Q1 2021
Segmental Financials Q1 2021 Public Private Asset Investment Investment Principal AED '000 Real Estate Debt Banking Markets Non-core Others Corporate Q1 2021 Markets Markets Management Management Banking investment Net fee and commission income 57,331 10,819 2,141 3,986 74,277 0 223 305 528 20,254 1
Slide 22: 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 23: 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 24: 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 25: 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