Shuaa Capital (p.s.c) · DFM:SHUAA
Shuaa Capital (p.s.c) — FY2020 Earnings Presentation
33 slides from Shuaa Capital (p.s.c)'s earnings presentation, Mar 11, 2021
Slide 1: FY 2020 Earnings Presentation
FY 2020 E a r n i n g s P re s e n ta t i o n 11 March 2021 Strictly Confidential © 2020 SHUAA Capital psc. All rights reserved
Slide 2: Q4 2020 & FY 2020 Executive Summary
Q4 2020 & FY 2020 Executive Summary Resilience in light of a challenging year… Net income attributable to shareholders at AED125m for FY 2020, AED62m for Q4 2020 with third consecutive quarter of profitability despite COVID-19 EBITDA of AED349m for 2020 (up 89% YoY), AED110m for Q4 2020 (down 20
Slide 3: Reaction to COVID-19
Reaction to COVID-19 Issued the first high yield issuance in the MENA region since the onset of the COVID-19 – proceeds were used for Strengthened general corporate purposes and to strengthen the balance sheet Balance Sheet & Liquidity Position Maintained sufficient liquidity through disciplined
Slide 4: Consolidation periods and comparability of results – merger impact
Consolidation periods and comparability of results – merger impact Current Period 12 months 2020 3 months 2020 (Oct – Dec) 12-month 3-month SHUAA consolidation consolidation Comparative Period 12 months 2019 3 months 2019 (Oct – Dec) 7-month profit as investment 5-month 3-month ADFG entity consolida
Slide 5: Net Profit Performance
Net Profit Performance Quarter-on-Quarter & Year-on-Year Net Profit1 Commentary AEDm (13m) (17%) 78m 168% Solid Q4 2020 at AED62m and FY 2020 net profit at AED125m showing positive impact of combined entity: 125 EBITDA of AED349m highlighting the earnings capacity of the Group, 75 underscored by s
Slide 6: Revenue Performance
Revenue Performance Quarter-on-Quarter & Year-on-Year Revenues Commentary AEDm 263m 95% 538.5 Strong operating income with stability of fee & trading business 286 95m 60% Increase vs. Q4-19 mainly driven by landmark transaction and gains in 275.6 254.6 advisory 56 Positive impact from recurring
Slide 7: Expense Performance
Expense Performance Quarter-on-Quarter & Year-on-Year Expenses Commentary AEDm 67m 29% 296.9 QoQ expenses increase mainly reflect proactive adjustments of non-core assets 79 (5m) 229.5 (4%) Catch up in bonus accruals within staff 58 costs 72 AED15m increase in other operating expenses related to
Slide 8: Addressable Cost Base
Addressable Cost Base Addressable Cost Base1 – By Expense Type Commentary 37m 84 89 QoQ addressable cost base increase driven by 19 G&A 39 Staff costs increase mainly relating to catch 52 52 21 up in bonus accruals 47 5 5 Increase in G&A predominately driven by 18 16 17 bond issuance costs Oth
Slide 9: 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 153 3 68 Q4 2020 Other income at AED(69)m, with FY 22 2020 at AED(84)m 113 97 87 80 59 2 AED74m FV losses driven mainly by (43) (42) (39) COVID-19
Slide 10: Segment Performance
Segment Performance Asset Management Investment Banking Corporate AEDm AEDm AEDm 13 156 257 6 92 86 110 89 EBITDA 0 49 21 (0) 17 5 (3) Q4 19 Q3 20 Q4 20 FY 19 FY 20 Q4 19 Q3 20 Q4 20 FY 19 FY 20 Q4 19 Q3 20 Q4 20 FY 19 FY 20 Revs. 130 28 34 215 148 2 6 3 21 26 28 33 217 39 365 Net (101) 79 98 (5) 13
Slide 11: Asset Management Segment Performance
Asset Management Segment Performance Asset Management Commentary AEDm Stable performance over the year with strong revenue base slightly offset by increasing operating expenses 156 Public Markets: 92 Strong recurring management fee base 86 further supported by MTM gains; including Goldilocks, QIL
Slide 12: Investment Banking Segment Performance
Investment Banking Segment Performance Investment Banking Commentary AEDm FY 2020 was a challenging year due to 13 COVID-19, resulting in delays to transactions closing and lower trading income after the group opted for a risk-off strategy 6 Banking: Generated revenue of AED14.4m in H1 2020; AED3.
Slide 13: Corporate Segment Performance
Corporate Segment Performance Corporate Commentary AEDm 257 Solid FY2020 performance characterized by wide ranging quarterly performance Strong performance within a 110 89 consolidated business (Noor Capital CFD business) 49 Recognition of significant bargain gain on 17 EBITDA single transaction
Slide 14: Non-core asset reduction on ahead of schedule
Non-core asset reduction on ahead of schedule Non-Core Unit Evolution Commentary AEDm 66% 132m Significant progress made in Q4 2020 and during FY 2020 113 66% reduction since July 2019 19 Total of AED 74m impairments within NCU 403 135 during FY 2020; of which AED 57m were taken during Q4 2020
Slide 15: Synergy realization continues
Synergy realization continues Revenue & Cost Synergies Commentary Target vs. FY 2020 Achievement AEDm Revenue Synergies Cost 58% Synergies % Achievement on Target 54.6 16 Continued progress on the realization of synergies 90% 58% of target synergies achieved 31.4 Further initiatives underway to
Slide 16: Continued build-up of AUM
Continued build-up of AUM AUM Evolution Commentary US$m 489m 4% 14,090 Significant gain in total AUM over the quarter driven by Net new money from new fund launches including Thalassa Investment LP (SMG) and ICC Fund Platform 13,601 Positive performance in investment portfolios Positive foreig
Slide 17: Reinforcing our strategic principles…
Reinforcing our strategic principles… Strengthen fund raising capabilities Leading Regional Investment Manager Create permanent capital vehicles and grow AuM Increase product suite and cross-selling opportunities We deliver uncompromising quality to our customers Regional Dominance in Domina
Slide 18: …and associated levers
…and associated levers Strengthen and Diversify products and services Scale the platform and grow core businesses within core businesses operate more efficiently Expand regional footprint1 Grow fixed income platform Increase operational efficiency Grow asset management business Grow permanent capita
Slide 19: Moving to transformation phase…
Moving to transformation phase… Strengthen and grow core businesses Diversify products and services within core businesses Scale the platform and operate more efficiently ICC Fund Platform SHUAA Financing Opportunities Fund SHUAA Bond Issuance The first Sharia-compliant funds within an Fund focused
Slide 20: …with continued strong momentum for 2021
…with continued strong momentum for 2021 Strengthen and grow core businesses Diversify products and services within core businesses Scale the platform and operate more efficiently Investment Operational Anghami Recruitment Investment in Anghami’s latest funding round Ongoing recruitment across busin
Slide 21: Progress towards targets
Progress towards 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 Ratio1
Slide 22: Appendix
Appendix
Slide 23: Quarterly P&L (2019-2020)
Quarterly P&L (2019-2020) AEDm Quarterly Financials AED ’000 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY YoY 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 Variance Interest income 0 0 9,553 4,449 14,002 5,563 3,212 5,677 4,195 18,646 4,644 Interest expense 0 0 (4,096) 2,568 (1,528) (785) (694) (2,635) 348 (3,
Slide 24: Balance Sheet Summary (2019-2020)
Balance Sheet Summary (2019-2020) AED '000 31-Dec 30-Sep 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 2020 2020 2020 2020 2019 2019 2019 2019 Assets Cash and deposits with banks 416,975 329,863 327,993 293,701 360,193 297,852 63,790 51,572 Receivables and other debit balances 214,293 191,588 225,997 18
Slide 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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