SHUAA Capital DFM Roadshow Presentation London, May 2007 Disclaimer This document is produced for informational purposes only. The information contained herein must not be reproduced in whole or in part without the prior consent of SHUAA Capital. Copyright 2007 All rights reserved
Mission To be the leading Investment Banking institution in the GCC by building unrivalled partnerships with our clients and shareholders, and to generate superior returns through integrity, knowledge, creativity and dedication.
Contents Introduction SHUAA Business Lines Financial Performance Future Plans
About SHUAA Capital SHUAA Capital is the region s leading investment bank - established in 1979 with over 27 years of regional experience - we boast a unique knowledge of the GCC. SHUAA shares are listed on both the Dubai Financial Market and Kuwait Stock Exchange. We were also the First Arab company to join DIFX in 2006 SHUAA Capital observes strict adherence to best practice and maintain the highest ethical standards. We are regulated by the UAE Central Bank, the UAE Ministry of Economy, the Dubai Financial Services Authority (DFSA), the Emirates Securities & Commodities Authority (ESCA), the Kuwait Stock Exchange, DFM, and the Saudi CMA. Our market cap. today is around USD 750 million among 14,000 shareholders owning 550 million shares outstanding. Our total Assets under Management (AUM) currently stand at around USD 2.5 billion. Rated BBB+ rating by Capital Intelligence, and honored by Euromoney s Award for Excellence as Best Equity House in the UAE in 2004. With over 230 professionals with in depth regional experience and product know-how, we enjoy strong placement power with regional and international private and institutional investors Furthermore there have recently been several significant developments: We obtained license to operate as a full investment bank in Saudi Arabia We gained effective control of Amwal Qatar s only investment bank We opened a satellite office in Istanbul We purchased a stake in Edelweiss Capital, India s leading independent Investment Bank We partnered with Baer Capital, an investment management firm focused on India / GCC
Introduction SHUAA Business Lines Financial Performance Future Plans
SHUAA operates four main business lines, with an active principal investment business Pre-2000 Principal Investments Actively investing and managing SHUAA s assets to maximize shareholders value Established a diversified portfolio of global investments 2001 Asset Management The leading asset management institution in the region, covering different asset classes including Shariah compliant Currently manages 13 open ended funds targeting the GCC and MENA regions with over USD800 million under management 2002 Investment Banking Ranked 1 st in the GCC IPO market, with over USD 946 million in deal value Activities include ECM, DCM, and advisory 2004 Brokerage Network provides clients with access to 14 exchanges in 12 GCC and MENA markets through one single platform Top three broker in UAE market share 2005 Private Lead by investment professionals with an established regional track record Equity Closed the first fund in 2005 (USD 200 million) and partially closed the second fund (USD 100 million) in 2006
SHUAA Capital portfolio is a mix of associate companies and funds / securities Associate Companies Associate % Ownership Book Value* Description Porta 49.10% 45 Porta is an Egyptian market leader in the production of printed and laminated packing and packaging material for food products Al Kout 48.69% 371 A Kuwaiti joint stock company engaged in the production and transportation of chlorine, salt, and other chemicals Taghleef 23.40% 119 Taghleef is a regional leader in the manufacture and marketing of plastic based flexible packaging. Its activities encompass Egypt, Oman, and UAE Total 535 * As of 31 March 2007 AED mn Funds and Securities available for sale Type Value* Percentage Equity 188 28% Fixed Income 174 26% Hedge Funds 161 24% Private Equity 40 6% Other 108 16% Total 671 100% * As of 31 March 2007 AED mn
SHUAA funds have been the top performers with the longest track record in the GCC and MENA regions SHUAA Funds-Performance since Inception +211.70% 450% AGF Since 03.01 400% 350% 300% 250% Arab Gateway Fund won best Arab/GCC listed equities fund in 2004 by Forsyth Partners EGF OGF +256.23% Since 04.02 +64.70% Since 07.04 200% 150% 100% KGF TAIF* +17.33% Since 10.05 +36.79% Since 05.02 50% 0% MAHA* +7.10% Since 03.06-50% Mar-01 Jul-01 Nov-01 Mar-02 Jul-02 Nov-02 Mar-03 Jul-03 Nov-03 Mar-04 Jul-04 Nov-04 Mar-05 Jul-05 Nov-05 Mar-06 Jul-06 Nov-06 Mar-07 (*) Debt Funds
SHUAA Capital has successfully built a leading brand in Investment Banking Advisory and IPO markets Selected Transactions IPO League table (01/06-04/07) Air Arabia PJSC Initial Public Offering AED 2,566,700,000 Lead Manager and Book Runner March 2007 Advisor to Gulf Navigation Holding PSC Public Offering of 910,000,000 shares at AED 1.0 per share AED910,000,000 Financial Advisor, Lead Manager and Book Runner August, 2006 Advisor to Rotana Hotel Management Corp. LLC Capital Increase and Sale of Shares AED220,000,000 Financial Advisor and Placement Agent May, 2006 Advisor to Islamic Arab Insurance Company PSC Public Offering of 200,000,000 shares at AED1.0 per share AED200,000,000 Lead Manager and Book Runner July, 2005 1. Shuaa Capital US$946.8m 2. HSBC US$937.2m 3. JP Morgan US$880.5m 4. Saudi British Bank US$739.1m 5. Natl Commercial Bank US$686.7m Advisor to Aramex International Ltd. Advisor to Arabtec Construction LLC Advisor to Amlak Finance PSC Advisor to EMAAR Properties PJSC 6. Samba Find Group US$471.4m 7. Lehman Brothers US$438.5m on the sale to Arab International Logistics Company PJSC US$185,500,000 Financial Advisor June, 2005 on the sale to Arab Technical Construction Company PJSC AED390,000,000 Financial Advisor March, 2005 Public Offering of 412,000,000 shares at AED1.0 per share AED412,000,000 Lead Manager January, 2004 Private Placement AED375,000,000 Arranger and Sole Underwriter December, 2003 8. Merrill Lynch US$360.5m 9. Deutsche Bank US$351.8m 10. Dubai Bank Gulf US$239.7m Regional Total US$7.52bn Source: IFR Gulf Capital Markets Briefing April 2007
SHUAA Securities offers access through a single platform to 14 exchanges in 12 regional markets One-Stop-Shop Execution Platform across Arab Exchanges Dedicated Brokers offering up-to-the-minute information on all relevant markets Relationship Management and Equity Advisory The Client SHUAA Capital History and Knowledge Execution Platform Regional Access
SHUAA Partners is led by investment professionals with a regional investment track record stretching back to 1979 Private equity funds specializing in regional private equity, buyout, and mezzanine finance through specialized funds First US$200million fund closed in Sept. 2005 Target IRR of 25% The Fund completed its first investment by acquiring 40% stake in Damas LLC, the leading UAE-based jewelry firm Raising $100 million private equity fund to invest in existing and start-up businesses in the Levant and other emerging economies in the MENA region Fund I US$200 million Fund II US$100 million
SHUAA Research is the GCC s leading house covering more than 40% of the GCC market cap Regular Specialized Publications Vision annual Arab capital markets asset allocation report Economic sector reports Regular market reports and in-depth company analysis Publications Regular Equity Research Prime Equity coverage of most companies listed on Arab Bourses. Initial reports are followed up by regular updates, with revision of forecasts, targets and recommendations. CDASH Comprehensive Corporate Database Historical financial information on over 800 listed companies across 13 markets Company profiles, corporate actions and trading history Built-In analytical tools Regional Indices 12 nation equity indices, as well as regional and sectoral indices World s first Arab Islamic equities index and Arab bond index Highly customizable benchmarking capabilities across all Arab asset classes
SHUAA Capital Research covers over 40 companies comprising nearly 40% of the regional market cap UAE Current : 19 Oman Current : 1 Saudi Arabia Current : 3 Jordan Current :1 Kuwait Current: 8 Lebanon Current :2 Egypt Current :2 Qatar Current :3 Bahrain Current :1 DIFC Current : 2 SHUAA Coverage Total Coverage: 42 GCC Companies
Introduction SHUAA Business Lines Financial Performance Future Plans
SHUAA Capital Summary Financial Performance USD 000 2003 2004 2005 2006 Revenues 38,581 91,565 136,706 125,682 Number of Employees (Group) 74 93 147 233 AUMs 276,143 1,108,590 1,668,553 2,507,105 Equity 123,582 185,295 424,998 419,9974 Return on equity 21% 49% 53% 19% productivity by employee 521 984 929 536 Market capitalization 248,501 944,142 1,100,000 650,532 Net Profits 19,733 60,971 98,738 71,722 Source: SHUAA Capital
Revenues and profits have increased at a CAGR of 46% and 54% respectively from 2003 to 2006 mirrored by a growth in human capital
SHUAA s flexible structure enables it to turn to more profitable lines of business depending on the industry fluctuations
SHUAA shareholders have enjoyed sizeable returns from capital gains and consistent dividend payouts
SHUAA s share price has been closely correlated with UAE market; however, its dividend yield has clearly exceeded market average
SHUAA s asset growth reflects its expansion strategies
SHUAA Capital Detail of AUMs Total AUM s currently stand at over $2.5bn
Introduction SHUAA Business Lines Financial Performance Competitive Positioning
A long established presence, brand, and talent help make SHUAA the leading GCC investment bank People Regional Brand Dedicated team of local seasoned and experienced professionals working together for a long time Established recruiting and training processes which enables SHUAA to tap into local talent pool Attractive packages and resources to attract Arab speaking finance professionals to relocate to the GCC s leading investment bank First established presence in the GCC with operations since 1979 promoting the GCC before the GCC was even created Unparalleled suite of GCC and Arab world centric products The longest established track record in regional asset management and private equity SHUAA is the GCC s investment bank Local Presence Research Local presence in each of UAE (head office), Saudi Arabia, Qatar Planned presence in Lebanon, Syria, Egypt, and Jordan Established partnerships in Kuwait, India, and Turkey The first choice for information in the GCC company reports on over 50 GCC & Levant companies covering 40% of the region s market cap Owns a proprietary database for over 800 companies across 13 regional markets Regular strategy economic reports and indices
through a well-defined expansion plan reaching all GCC and MENA markets
Conclusion Taking advantage of SHUAA Capital s expertise, franchise name, financial performance and reputation Building on the UAE s inherent strategic advantages, such as geography and liquidity levels SHUAA Capital aims to be one of the consolidators of the regional financial industry Aim is to create a top-tier, diversified investment bank stretching from North Africa to South Asia SHUAA Capital is the effective proxy to GCC markets Fundamental economic forecasts predict an 8 to 12% real average growth in the GCC economies SHUAA Capital provides access to GCC asset class through multiple products and investment strategies
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