Shuaa Capital (p.s.c) · DFM:SHUAA
Shuaa Capital (p.s.c) — Q1 2021 Earnings Presentation
29 slides from Shuaa Capital (p.s.c)'s earnings presentation, May 10, 2021
Slide 1: Q1 2021 Earnings Presentation
Q1 2021 E a r n i n g s P re s e n ta t i o n 10 May 2021 Strictly Confidential © 2020 SHUAA Capital psc. All rights reserved
Slide 2: Q1 2021 Executive Summary
Q1 2021 Executive Summary Fourth consecutive quarter of profitability driven by stable revenue streams Net income attributable to shareholders at AED25m for Q1 2021, representing fourth consecutive quarter of profitability despite a continued challenging environment with record performance in Asse
Slide 3: Net Profit Performance
Net Profit Performance Quarter-on-Quarter & Year-on-Year Net Profit1 Commentary AEDm 267 Q1 2021 profit at AED25m, representing the 287m fourth consecutive quarter of profit 59 62 25 Withstanding continued challenging environment Sequential decline in profitability driven (262) mainly by lower o
Slide 4: Revenue Performance
Revenue Performance Quarter-on-Quarter & Year-on-Year Revenues Commentary AEDm 255 Operating income underpinned by solid fee & trading business Positive impact from recurring management fees 145 199 30m Includes a catch-up fee in Q1 2021 42% related to a real estate development asset Other 102 7
Slide 5: Expense Performance
Expense Performance Quarter-on-Quarter & Year-on-Year Expenses Commentary AEDm 114 29 YoY expenses increase mainly from other 5m expenses due to FX gains seen in Q1 2020 9% 21 63 67 58 53 Staff costs broadly flat year-on-year Other 19 18 16 13 16 despite selective hires to bridge Expenses coverage
Slide 6: Other Income Performance
Other Income Performance Quarter-on-Quarter & Year-on-Year Other Income Commentary AEDm Associates P&L Finance Costs Other Income/Exp FV Gains/Losses1 189 152 68 Q1 2021 other income at AED(6)m with 22 finance costs and associate income 48 offsetting FV gains and other valuation 87 59 10 adjustments
Slide 7: Segment Performance
Segment Performance Asset Management Investment Banking Corporate AEDm AEDm AEDm 7.5 45 41 278 110 89 30 21 19 EBITDA 0.0 5 (0.3) (0.3) (0.9) (220) Q2 20 Q3 20 Q4 20 Q1 20 Q1 21 Q2 20 Q3 20 Q4 20 Q1 20 Q1 21 Q2 20 Q3 20 Q4 20 Q1 20 Q1 21 Revs. 49 28 34 38 74 13 6 3 3 3 84 33 217 31 25 Net 230 66 50
Slide 8: Asset Management Segment Performance
Asset Management Segment Performance Asset Management Commentary AEDm Record quarter with increasing recurring fee 45 base 41 Private Markets: Launched Thalassa Investments LP, a private equity fund, that will contribute recurring management fee income Public Markets: 21 Solid recurring manageme
Slide 9: Investment Banking Segment Performance
Investment Banking Segment Performance Investment Banking Commentary AEDm Q1 2021 characterized by slower advisory business and transactions not closing within the quarter 7.5 Banking: Lack of deals closing in the quarter but strong momentum into Q2 with secured landmark transactions such as Angha
Slide 10: Corporate Segment Performance
Corporate Segment Performance Corporate Commentary AEDm 278 Q1 2021 performance driven by EBITDA 110 89 30 Continued strong performance from consolidated CFD business (NCM) Fair value gains of consolidated funds partially offset by FV losses on associate (220) companies Q2 20 Q3 20 Q4 20 Q1 20 Q
Slide 11: Non-core asset reduction ahead of schedule
Non-core asset reduction ahead of schedule Non-Core Unit Evolution Commentary AEDm 66% 134m No significant movement in Q1 113 2021 but good visibility on remaining asset reduction 19 2 66% reduction since July 2019 403 131 Closure of NCU remains ahead of original target date Q3 2021 Confidence
Slide 12: AuM remains at an elevated level
AuM remains at an elevated level AUM Evolution Commentary US$bn (190m) (1%) 14.1 13.9 Slight decrease in total AUM in Q1 2021 Positive FX impacts related to UK assets more than offset by planned expiry of a mandate and 13.6 negative FV movements in a real estate portfolio Q3 2020 Q4 2020 Q1 2021 1
Slide 13: Strengthening vertical growth pillars – new Debt sub-segment
Strengthening vertical growth pillars – new Debt sub-segment Asset Management Investment Banking Corporate Public Private Investment Real Estate Debt Banking Markets Manages Markets Markets Management principal investments, Investments in Private equity Vertically Specialist Boutique Sales & trading
Slide 14: Update on strategy execution
Update on strategy execution 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 Restructuring Enterprise Fund Tailored Portfolios Advis
Slide 15: Transforming SHUAA - Examples
Transforming SHUAA - Examples Recruitment Ongoing recruitment drive across management, business and support functions to further strengthen SHUAA’s intellectual capital 10+ new hires across management, front office and support functions with a Scaling our platform and increasing capacity in line
Slide 16: Reiterating annual targets
Reiterating annual targets Integration Transformation FY2019 FY2020 Medium-term ambition Long-term ambition 5.2% 8.5% > 15% Return on Equity Return on Equity 7-12% Return on Equity Return on Equity 87% 55% < 60% Cost Income Ratio1 Cost Income Ratio1 Cost Income Ratio1 70% 146% 139% Cost Income Ratio
Slide 17: Appendix
Appendix
Slide 18: Quarterly P&L (2020-2021)
Quarterly P&L (2020-2021) Quarterly Financials AED ’000 Q1 Q2 Q3 Q4 FY Q1 Q1 21 vs Q1 20 2020 2020 2020 2020 2020 2021 Variance Interest income 5,563 3,212 5,677 4,195 18,646 3,755 (1,807) Interest expense (785) (694) (2,635) 348 (3,766) (1,112) (327) Net interest income 4,778 2,518 3,042 4,542 14,8
Slide 19: Balance Sheet Summary (2019-2021)
Balance Sheet Summary (2019-2021) AED '000 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 2021 2020 2020 2020 2020 2019 2019 2019 2019 Assets Cash and deposits with banks 353,566 416,975 329,863 327,993 293,701 360,193 297,852 63,790 51,572 Receivables and other debit balances 244,83
Slide 20: Segmental Financials Q1 2021
Segmental Financials Q1 2021 Private Asset Investment Investment Principal AED '000 Real Estate Public Markets Debt Banking Markets Non-core Others Corporate Q1 2021 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 21: 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 22: 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 (
Slide 23: 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
Slide 24: Segmental Financials Q2 2020
Segmental Financials Q2 2020 Public Private Investment Asset Investment Principal AED '000 Real Estate Banking Markets Non-core Others Corporate Q2 2020 Markets Markets Solutions Management Banking investment Net fee and commission income 21,405 5,201 694 2,943 30, 243 0 517 517 21,620 1,293 14 22,9
Slide 25: Segmental Financials Q1 2020
Segmental Financials Q1 2020 Public Private Investment Asset Investment Principal AED '000 Real Estate Banking Markets Non-core Others Corporate Q1 2020 Markets Markets Solutions Management Banking investment Net fee and commission income 20,568 3,463 692 567 25, 289 0 163 163 22,552 1,172 29 23,753
Slide 26: Segmental Financials Q4 2019
Segmental Financials Q4 2019 Public Private Investment Asset Investment Principal AED '000 Real Estate Banking Markets Non-core Others Corporate Q4 2019 Markets Markets Solutions Management Banking investment Net fee and commission income 8,673 1,116 694 872 11, 355 2 (240) (238) 14,984 (3,803) 0 11
Slide 27: 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 28: 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 29: 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