Shuaa Capital (p.s.c)DFM: SHUAA

Earnings Presentation Q1 2025

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SHUAA Earnings Presentation Q1 2025 Financials

15 May 2025



+46%

12.9

+2%

13.1

Asset Management

+19%

4.0

3.3

Real Estate



Executive Summary

Total Revenue

All figures in AED M

Revenue by Division

25.5

>100%

8.4

17.4

1.0

Investment Banking

Q4-24

Q1-25

Q4-24

Q1-25

Q4-24

Q1-25

Q4-24

Q1-25



59



56



Operating Expenses FTEs (Headcount and Expenses) Net Operating Profit

128%



81%



Cost to

Income

+10mn

4.8



FTEs

-20%

10.7

8.6



22.5

-8%

20.7



Q4-24 Q1-25

Q4-24 Q1-25

(5.1)

Q4-24 Q1-25

Net Profit (Core Business) Net Profit (Reported) Assets under Management

+7%

5,238

4,896



+19mn

0.8



252.6

195.8

(57.6)

0.8

(17.9)

Q4-24 Q1-25

Net Profit (Core Business)

One-Off Income

One-Off Expenses

Net Profit (Reported)

Q4-24 Q1-25

  • AED 26 million in Revenues, up from AED 17 million in Q4 2024, on the back of higher investment banking income, signaling strong growth potential

  • AED 5 million in Operating Income, compared to net operating loss of AED 5 million in Q4 2024, reflecting the successful implementation of cost-saving initiatives under our optimization strategy, to position us for long-term profitability

  • AED 196 million in Net Income, marking a turnaround from AED 161 million net loss in Q4 2024. This result includes AED 221 million net gains, driven by the successful completion of the capital optimization plan



  • 19% in operating margins, underpinned by consistent revenue performance and the successful execution of our ongoing cost optimization initiatives, which continue to enhance operational efficiency

  • 81% cost to income ratio, compared 129% in Q4 2024. Management is committed to driving this ratio down to a target of 65% through strategic revenue-enhancing initiatives throughout FY 2025, building on the momentum of our recently implemented capital optimization plan

  • Over AED 2m in additional cost savings from ongoing headcount optimization initiatives



Executive Summary (Cont'd)



Q1-25 Financial Measures



Q1-25 Key Metrics



Capital Optimization Process

Update on Capital Optimization Process

  • AED 85 million capital raise through Mandatory Convertible Bonds ("MCBs") issuance

  • Settlement of US$150m bonds through MCBs issuance and cash settlement

  • Settlement of AED 72m liability at 50% haircut

  • Ongoing discussion to refinance AED 208m facility with Senior Creditor



  • Revenues reached AED 26 million, up AED 8 million from Q4 2024, primarily driven by higher Investment Banking income

  • Operating expenses decreased by AED 2 million due to lower staff costs

  • Operating margins reached 19% for the quarter, supported by steady revenues and reduced cost base

  • Net profit (Core) of AED 1 million, compared to a loss of AED 18 million in the previous quarter

Balance sheet optimization measures were taken in Q1 2025, including an increase in the company's share capital through the issuance of MCBs and the execution of settlement agreement with key creditor.

  • Equity of AED 571m, up from AED 15m in Q4 2024

  • Debt / Equity ratio of 0.7x, down from 67x in Q4 2024

  • Management remains committed to reducing the overall debt levels with a plan in place to manage remaining liabilities

Comments



Financial Summary



Q1 2025 Financial Performance



Income Statement (AED M)

Q1-25 Q4-24 Q-o-Q

Actual Actual Change

Asset Management

13.1

12.9

0.2

Investment Banking

8.4

1.0

7.4

Real Estate

4.0

3.3

0.6

Others

0.0

0.2

(0.2)

Total Revenues

25.5 17.4 8.0

Operating Expenses

(20.7) (22.5) 1.8

Staff Expenses

(8.6) (10.7) 2.1

G&A

(8.3) (7.8) (0.4)

D&A

(2.3) (2.3) 0.0

Others

(1.5) (1.6) 0.1

Net Operating Income

4.8 (5.1) 9.9

Finance Cost

(7.5) (18.9) 11.4

Other Income & Expenses

3.5 6.1 (2.6)

Net Profit

0.8 (17.9) 18.6

Contribution from Subsidiaries

(3.3) 0.9 (4.2)

Non-Recurring Items

220.8 (154.9) 375.6

Corporate Tax

(22.5) 10.9 (33.4)

Net Profit to Common Shareholders

195.8 (160.9) 356.7

Key Metrics - Income Statement

Operating Margin (%) excl. one-off items 19% (29%) 48%

CIR (%) excl. one-off items 81% 129% (48%)

Balance Sheet (AED M)

Assets 1,190 1,171 2%

Liabilities 619 1,156 (46%)

Equity 571 15 3,713%

Net debt 396 999 (60%)

Debt to Equity 0.74x 66.74x (66.01)x

Return on Equity - Parent 60% NMF NMF

Key Financial Highlights



AED M

17

18

19

25

Revenue

(4)

(2)

5

(5)

Operating Income



(2)

(1)

2

(6)

(10)

(4)

9

5

Q2-24 Q3-24 Q4-24 Q1-25

Q2-24 Q3-24 Q4-24 Q1-25

Run-Rate One-offs

(161)

196

(22)

(30)

Net Profit (Loss) attributable to Owners of the Parent

D/E Ratio

0.7x

66.7x

5.6x

4.9x

Balance Sheet



1,375 1,375

1,172

1,196

1,171

1,156

1,190

619

571

203

179

15

Q2-24 Q3-24 Q4-24 Q1-25

Q2-24 Q3-24 Q4-24 Q1-25

Assets
Liabilities
Equity