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Eshraq Investments announces AED 35.99 million profit for Q2
2023
• Total operating income sees a significant increase of 2,446.7%
• Net profit for Q2 2023 soars by 609.3%
• Marks record occupancy rates for Nuran and Marina Rise developments
Abu Dhabi, UAE; 7 August 2023: Eshraq Investments PJSC ("Eshraq" or
"Company"), listed on the Abu Dhabi Securities Exchange ("ADX"), Eshraq
Investments PJSC ("Eshraq" or "Company"), listed on the Abu Dhabi Securities
Exchange ("ADX"), announced its financial results for the first six months of the
year.
Eshraq Investments marks a strong turnaround in financial performance in Q2
2023. The Company reported a notable increase in total operating income and
net profit. The Total Operating Income showed a remarkable surge, increasing
by 2,446.7% to reach Total operating income of AED 44.31 million from Total
operating loss of AED 1.89 million in Q2 2022.
Similarly, Eshraq’s Net Profit showed substantial turnaround, reversing from Net
loss of AED 7.07 million in Q2 2022 to Net profit AED 35.99 million in Q2 2023.
This represents a significant increase of 609.3% year-on-year.
These robust figures underscore Eshraq’s operational efficiency and its ability to
navigate challenging market conditions while delivering solid returns for its
shareholders.
Land Monetisation
To date, Eshraq has sold 7 land plots, representing total 27% of its existing land
bank by book value for a total sale consideration of AED 208 million. The
Company will continue to progress its land sale programme over the next 3 years
and generate revenue by monetizing non-revenue generating land assets through
the sale or engagement of partners to develop the land bank and its subsequent
sale. Eshraq will continue to explore more such opportunities to achieve cash
flows from all its assets.
Share Buy-Back
Page 1 of 3The Company continued to demonstrate its commitment to delivering
shareholder value through its ongoing share buyback programme. At the end of
the second quarter, Eshraq purchased an additional 108 million ordinary shares
with an aggregate value of AED 55.5 million at an average price of 0.5144 per
share. The share buyback has resulted in a gain to shareholders of AED 46.37
million on account of share buyback at discount to Eshraq’s book value as of
end of Q2 2023.
Leasing and hospitality businesses:
The Company’s residential apartments in Marina Rise and Nuran Marina hotel
apartments continue to register record occupancy rates. Up to June 2023,
Eshraq’s Marina Rise and Nuran Marina hotel apartments registered 95% and
94% average occupancy rates YTD respectively, reflecting their premium
standing in the market. The commercial operations generated AED 8.3mn gross
profit in the first quarter.
In Q2 2023, Eshraq finalised the sale of 58 apartment units in Burj Daman for
a total consideration of AED 162.01 million in cash, enabling the Company to
settle the outstanding mortgage and redeploy the proceeds in other investment
opportunities.
Commenting on the results, Mr. Jassim Alseddiqi, Eshraq's Chairman, said:
“We are pleased to report incredibly strong results in the second quarter of 2023
as we accrue the benefits of steady progress in our diversification strategy,
supported by profitable real estate investments. We remain on track with our
three-year plan to divest non-income generating assets and deploy the proceeds
towards profitable investments that deliver value to shareholders.
“Our results demonstrate that Eshraq has embarked on a new phase of growth.
In line with our business updates, we will be soon making announcements about
senior appointments that will contribute to strengthening our investor
proposition. We will always remain strategic and opportunistic about
investments that strengthen our asset portfolio and create increased value for
our shareholders.”
-END-
Page 2 of 3***
About Eshraq Investments:
Eshraq Investments is an investment Company based in Abu Dhabi, UAE, with
assets of more than AED3 billion in real estate, public equities, fixed income,
private equity and debt products. For further information, please visit
www.eshraquae.com.
For media enquiries on Eshraq, please contact:
Omar Nasro
Associate Director
ASDA’A BCW
Dubai, UAE
Tel : 971-4-450-7600
Email : Omar.Nasro@bcw-global.com
Page 3 of 3 | positive |
نﻮﻴﻧﻮﻧﺎﻗ نﻮﺒﺳﺎﺤﻣ ﺖﻣﺎﻫ ﻲﺑ لا ﺶﺗا
HLB HAMT CHARTERED ACCOUNTANTS
Level 18, City Tower 2, Sheikh Zayed Road
P.O.Box : 32665, Dubai, United Arab Emirates
Tel: +971 4 327 7775, Fax: +971 4 327 7677
E-mail: info@hlbhamt.com
REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
TO THE BOARD OF DIRECTORS OF MANAZEL PJSC
Introduction
We have reviewed the accompanying interim condensed consolidated financial statements of Manazel
PJSC (the "Company") and its subsidiaries (together, the "Group") as of June 30 2023, comprising of
the interim consolidated statement of financial position as of June 30 2023, the related interim
statement of comprehensive income, changes in equity, cash flows for the six months period then
ended and explanatory notes. Management is responsible for the preparation and presentation of
these interim condensed consolidated financial statements in accordance with International Accounting
Standard 34, "Interim Financial Reporting (IAS. 34)". Our responsibility is to express a conclusion on
these interim condensed consolidated financial statements based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements 2410,
"Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review
of interim financial information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with International Standards on
Auditing and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying interim condensed consolidated financial statements are not prepared, in all material
respects, in accordance with IAS. 34.
Emphasis of matters
We draw attention to Note 16 to the consolidated financial statements; Group is carrying an
amount of AED 378 Million as receivable from Government related entities in respect of
infrastructure costs incurred by the Group on various developments amounting to AED 585
million during the period from 2007 to 2022. As per the management, they are in discussion
with the authorities and have submitted all the relevant documents to substantiate their claim.
But the outcome of the discussions and the timing of reimbursement is currently uncertain. Our
opinion is not modified in this regard.
We draw attention to Note 8 to the consolidated financial statements; one project with an
estimated cost of AED 622 million under development has been on hold for the past three
years. The management has restructured the development plan and appointed a main
contractor to resume the construction activities. According to the management, there is no
impairment as of June 30 2023, and all the costs incurred are recoverable. Our opinion is not
modified in respect of this matter.
Member of International, the global advisory and accounting network
www.hlbhamt.com
Dubai | Abu D habi | Sharjah | Fujairah | JAFZA | SAIF Zone | RAK
1REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
TO THE BOARD OF DIRECTORS OF MANAZEL PJSC
Emphasis of matters (continued)
We refer to Note 17 to the financial statements;The company recognizes the significance of
the ongoing financial restructuring and its potential impact on the financial statements. As
such, the notes to the financial statements provide information about the restructuring
initiatives, their objectives, and anticipated outcomes.
Dubai For HLB HAMT Chartered Accountants
August 12, 2023 Signed by Vijay Anand
Partner
Ref: HAMT/SUG/2022/6980 [Reg. No. 654]
Member of International, the global advisory and accounting network www.hlbhamt.com
2MANAZEL PJSC
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months period ended June 30 2023 (unaudited)
Notes Six months ended June 30
2023 2022
AED ’000 AED ’000
Revenue 5 49,329 45,340
Cost of revenue 5 (25,961) (30,434)
GROSS PROFIT 23,368 14,906
Changes in fair value of investment properties, net -
Loss on sale of investment properties -
Finance costs 6 (60,133) (42,016)
Selling and marketing expenses (1,224) (10)
General and administrative expenses 7 (22,342) (22,903)
Other income 242 7,342
LOSS FOR THE PERIOD (60,089) (42,681)
Attributable to:
Ordinary equity holders of the Parent (60,089) (42,681)
Non-controlling interest - -
(60,089) (42,681)
Other comprehensive income:
Items not to be reclassified subsequently to profit or loss:
Loss on revaluation of property, plant and equipment - -
Items to be reclassified subsequently to profit or loss:
Profit/(loss) on hedging transactions - -
Other comprehensive income/(loss) for the period - -
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD (60,089) (42,681)
Attributable to:
Ordinary equity holders of the Parent (60,089) (42,681)
Non-controlling interest - -
(60,089) (42,681)
(Loss)/Earnings per share
Basic and diluted 4 (0.02) (0.02)
The attached notes 1 to 18 form part of these interim condensed consolidated financial statements.
3 | neutral |
Dubai Investments Acquires Additional Stake in UK’s Monument Bank
Dubai, UAE, 8th Nov 2023: Dubai Investments, the leading investment company listed on the Dubai
Financial Market [DFM] has acquired additional 7.68% equity stake in Monument Bank Limited, a UK Based
Digital Bank regulated by the Financial Conduct Authority (UK) and the Prudential Regulation Authority
(UK) further increasing the Group’s holding in the Bank from 9.25% to 16.93%. This investment is subject
to necessary regulatory approvals. Dubai Investments had made an initial investment in Monument Bank
earlier this year.
Monument Bank, the UK-based digital bank, is at the forefront of transforming the banking experience with
innovative solutions and is uniquely positioned as the only UK bank focused exclusively on the mass-
affluent segment, supporting customers with deposit products, lending nearly £100m during the first year
of operation.
“Dubai Investments’ increased stake in Monument Bank, not only reiterates the Group’s confidence in the
bank’s potential but also its strategy and vision. Monument Bank's resilience and successful capital raise
rounds exemplify their promising growth trajectory, and the bank's progress in monetizing its technology
and business service verticals demonstrates its commitment to innovation and customer-centric solutions.
This investment also solidifies Dubai Investment’s presence in the dynamic digital banking landscape and
aligns with the Group’s vision to foster international collaborations”,said Khalid Bin Kalban, Vice
Chairman and CEO, Dubai Investments.
“Dubai Investments increased stake in Monument Bank not only solidifies our financial foundation but also
signifies a strong vote of confidence in our unique approach to banking. We are pleased to have
successfully completed the Series B funding round. The milestone is another testament of our investors’
continued belief in the Bank’s strategy, as we continue to move forward in our journey and accelerate our
path to profitability. Monument remains committed to serving the overlooked ‘mass affluent’ segment in the
UK, and eventually beyond the UK, having launched new features and products to further enhance the
client experience. “The business’ growth continues to accelerate, with savings balances exceeding £700m,
383% growth year to date. Our proposition and quality of service has successfully attracted mass affluent
clients, with our average balance now over £60,000, enabling us to scale with a laser sharp focus on our
community”, said Ian Rand, Monument Bank’s Chief Executive Officer.
As part of its ongoing growth strategy, Monument Bank recently concluded its successful Series B round
of investments raising over £40 million, backed by a combination of existing and new investors and since
inception has raised an impressive total of over £103 million, further solidifying a strong position for
continued growth.
“As Monument Bank thrives in this dynamic landscape, it's fitting to acknowledge the firm's nimbleness in
pursuing rapidly evolving opportunities within the large, overlooked market segment that Monument targets.
Our strengthened partnership with Dubai Investments is a meaningful step in advancing our strategic plans,
allowing us to leverage technological capabilities, expand operations, and increase influence in
international markets. The successful conclusion of this funding round is a testament to the robust
relationship we've built, and I am confident it will continue to grow, enabling us to capitalize on both current
and future opportunities in the months and years ahead”, added Mintoo Bhandari, Founder of Monument
Bank.
Since inception, Monument Bank has nurtured a thriving community of members, delivering an unmatched
level of service through the bank’s app, using email, video, chat, or calls, with an impressive track record
of over 90% of calls being answered within just 20 seconds. Monument Lifestyle, an app launched earlier
this year, offers in excess of 35 services designed to save busy professionals, entrepreneurs, and their
families’ time in optimising wealth creation potential.
Alpen Capital (ME) Limited, a financial advisory firm in Dubai served as the advisor to the transaction.
Ends | positive |
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FINANCE HOUSE
P.J.S.C - s p un
Date: 9 November 2022
Ref: 36/FC/TKR/2022
Chairman's Report for the nine months ended 30 September 2022
On behalf of the Board of Directors, I am pleased to present the condensed consolidated interim financial
statements of Finance House PJSC and its subsidiaries (FH Group) as at 30 September 2022 and the results
of its operations for the nine months ended 30 September 2022.
FH Group has posted a Net Profit of AED 20.17 million for the nine months ended 30 September 2022
compared to AED 19.82 million registered during the corresponding period of the previous year.
Net Fee & Commission income was higher at AED 14.13 million in the first nine months of 2022 compared
to AED 12.44 million in the same period of the previous year.
Aggregate of Net Investment & Other Operating Income during the first nine months of 2022 was higher
at AED 35.22 million compared to AED 31.04 million in the corresponding period of the previous year.
We remain optimistic that local & global equity and fixed income markets will remain relatively stable
for the rest of this financial year, despite political uncertainties and continued monetary tightening by
central banks around the globe.
Net Interest Income and Income from Islamic Financing and Investing Assets held steady at AED 99.82
million in the first nine months of 2022 compared to AED 100.76 million in the same period last year. A
planned downsizing of our unsecured exposure in the Retail Finance lending book and accelerated
repayment of funded facilities by some of our existing corporate borrowers, were substantially mitigated
by sourcing new corporate borrowers. Due to intense price competition in the UAE Insurance Sector, Net
Insurance Income was lower at AED 25.47 million in the first nine months of 2022 compared to AED
31.26 million in the corresponding period of the previous year.
Net Loans & Advances including Islamic Financing & Investing Assets as of 30 September 2022 were
marginally lower at AED 2.08 billion compared to AED 2.11 billion as at 31 December 2021. Customers'
Deposits & Margin Accounts as of 30 September 2022 stood at AED 1.69 billion compared to AED 1.72
billion as at 31 December 2021. Consequently, the loan book continues to be substantially funded by the
deposit book, reflecting the Group's cautious and balanced approach to asset & liability growth.
Total Operating Expenses at the consolidated level were slightly higher at AED 121.61 million in the first
nine months of 2022 compared to AED 118.96 million in the corresponding period of the previous year.
Following the pandemic period, we are repositioning ourselves to resume business growth in targeted
segments, which has necessitated selective hiring of qualified personnel.
FH's loan loss provisioning policy continues to be prudent. With the implementation of IFRS 9 based
credit impairment provisioning (expected credit loss model) effective 1 Jan 2018, loan loss provision set
aside in the first nine months of 2022 was AED 28.94 million compared to AED 36.31 million in theJ---- jg— oJlJIjIzd
FINANCE HOUSE
P.J.S.C - fi.puil
Date: 9 November 2022
Ref: 36/FC/TKR/2022
corresponding period of the prior year. Effective collection and recovery strategies implemented across
Retail Finance and Commercial Finance Lending Portfolios are beginning to show encouraging results,
thereby moderating the requirement for incremental credit impairment provisions compared to the
previous year.
The FH Group's liquidity position as of 30 September 2022 continues to be strong, with Cash & Cash
equivalents accounting for 16.9% of Total Assets. Similarly, Capital Adequacy Ratio at the consolidated
level as of 30 September 2022 continues to be robust at 26.3%, providing a solid footing for sustained
future growth in assets.
With ongoing investments into shoring our digital sourcing and servicing capabilities, we are well
positioned to profitably leverage economic growth opportunities as local, regional and global economies
emerge from the adverse impacts of the pandemic, recent global events and monetary tightening by
central banks.
Vice Chairman
Abu Dhabi
09 November 2022
Page 2 of 2
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Finance House P.J.S.C; P.O. Box 7878, Abu Dhabi, U.A.E; Tel: *971 (2) 621g ggg
Public Joint Stock Company and the share capital is AED 310,049,961 y-aljlal YA f AA“H aj j. aj Jl «odj—j S— £. a .... S_S | positive |
Aldar posts 22% YoY increase in Q1 net profit with record
quarterly development sales of AED 4.5 billion and
strong contributions from recurring income portfolio
Abu Dhabi, UAE: 03 May 2023
Revenue Gross Profit EBITDA Net Profit
Q1 AED 3.1 bn AED 1.3 bn AED 955 mn AED 836 mn
2023 + 14% YoY + 18% YoY + 18% YoY + 22% YoY
Group Q1 2023 Highlights
▪ Cross-platform growth driven by ongoing ▪ Solid performance across Aldar’s diversified
execution of development revenue backlog, investment portfolio driven by a buoyant rental
strong quarterly development sales and rising market and rising occupancy across the
recurring income from investment properties, portfolio, with recent acquisitions performing
reflecting the evolution of Abu Dhabi’s real estate above expectations.
market.
▪ Significant dry powder for disciplined capital
▪ Record quarterly development sales of AED 4.5 deployment to drive earnings growth, build
billion supported by increased demand from scale, and enhance diversification.
overseas and resident expat buyers in the UAE.
▪ Healthy liquidity position with AED 6.1 billion of
▪ Highest ever development revenue backlog of free cash and AED 4.4 billion of committed
AED 18.8 billion providing revenue visibility over undrawn facilities; well placed to capture
the next 2-3 years. attractive growth opportunities.
▪ Expansion of Aldar's strategic landbank through ▪ Aldar leads the way in climate action with the
the acquisition of Al Fahid Island, adding a unique launch of its comprehensive Net Zero Plan
waterfront offering to its development pipeline. outlining its commitment to decarbonize the
business by 2050.
▪ Entry into Dubai real estate market through a joint
venture with Dubai Holding to develop three new ▪ In April, Moody’s reaffirmed Aldar Properties’
communities across 3.5 million sqm of land. Baa2 rating and Aldar Investment Properties’
Baa1 rating with a stable outlook for both,
▪ A joint venture partnership with Mubadala to
reflecting the company’s sizeable development
develop commercial assets in Al Maryah Island,
landbank, diversified recurring income portfolio,
capitalising on the high demand for prime office
strong liquidity position, and prudent approach
spaces in Abu Dhabi’s growing international
to financial management.
finance centre.TALAL AL DHIYEBI
“
GROUP CHIEF EXECUTIVE OFFICER OF ALDAR PROPERTIES
“Aldar has maintained positive momentum in the first quarter of 2023,
reporting a strong set of results against the backdrop of positive economic
fundamentals in the UAE.
During Q1, we launched a variety of new residential concepts in Abu Dhabi that proved
incredibly popular amongst investors locally and overseas. The success of these launches
paved the way for our highest ever quarterly sales of AED 4.5 billion and played a large part
in Aldar’s stellar performance during the first three months of the year. Aldar’s investment
platform continued to grow at pace driven by tenant occupancy of 93% across assets, strong
rental returns, and positive contributions from new acquisitions within the portfolio, particularly
the four office towers at ADGM.
As the UAE continues to broaden its appeal as a business and lifestyle destination, we expect
robust real estate market dynamics to sustain through 2023. Against this backdrop, Aldar will
continue to deploy capital in a disciplined manner across its platforms to drive our
transformational growth agenda.”
Business Unit Highlights
ALDAR DEVELOPMENT
This core business unit comprises three main segments: Property Development and Sales, which is responsible
for developing and marketing Aldar’s diverse and strategic land bank located in key investments zones across Abu
Dhabi, Dubai, and Ras Al Khaimah; Project Management Services, which manages Aldar's project management
business, including government housing and infrastructure projects in the UAE; and Egypt, which manages Aldar’s
investment in Egyptian real estate company SODIC.
Aldar Development Q1 2023 Q1 2022 % change
AED million
Revenue 1,917 1,777 8%
EBITDA 551 457 20%
Group Sales 4,549 2,191 108%
UAE sales 4,202 1,512 178%
▪ Aldar Development’s Q1 2023 revenue increased 8% YoY to AED 1.9 billion driven by ongoing
execution of the revenue backlog.
▪ Gross profit margin for the first quarter of 2023 stood at 40%, up from 37% in Q1 2022.
▪ EBITDA increased 20% YoY to AED 551 million.
▪ Group sales rose 105% to AED 4.5 billion, Aldar’s highest-ever quarterly sales, driven by strong
demand from a growing base of overseas and resident expat buyers in the UAE.
▪ Group revenue backlog reached a record AED 18.8 billion, providing strong visibility on the group’s
revenue across both the UAE and Egypt with revenue recognition expected over the next 2-3 years.▪ Project management services backlog of AED 62 billion demonstrates the long-term nature of the
franchise.
UAE Operations:
▪ Total sales for Q1 2023 reached a record AED 4.2 billion, up 178% YoY, driven by high demand for
existing inventory and new launches including The Sustainable City, Saadiyat Lagoons, Yas Park
Views, Fay Al Reeman, Reeman Living, and Manarat Living.
▪ Sales from overseas and expat buyers reached a record AED 1.9 billion demonstrating the
continued appeal of Aldar’s growing offering and Abu Dhabi’s emergence as a premier investment
and lifestyle destination.
▪ Revenue backlog of AED 14.7 billion with an average duration of 29 months.
▪ Cash collections for Q1 2023 stood at AED 1.2 billion.
Egypt Operations:
▪ SODIC contributed AED 177 million to Aldar Development’s Q1 2023 revenue, with EBITDA
standing at AED 23 million.1
▪ SODIC’s Q1 2023 sales reached AED 346 million (EGP 2.7 billion).1
▪ Revenue backlog for SODIC reached AED 4.1 billion (EGP 34 billion), with an average duration of
27 months, providing strong visibility on revenue over the next 2-3 years. 2
▪ SODIC continues to maintain a strong liquidity position with total cash and cash equivalents
amounting to AED 223 million (EGP 1.9 billion). 2
ALDAR INVESTMENT
Aldar Investment comprises four main segments representing over AED 32 billion of assets under management.
Investment Properties houses Aldar’s core asset management business comprising over AED 24 billion of prime
real estate assets across retail, residential, commercial, and logistics segments. Hospitality and Leisure owns a
AED 4.5 billion portfolio of hotel and leisure assets principally located on Yas Island, Saadiyat Island, and Ras Al
Khaimah. Aldar Education is the leading private education provider in Abu Dhabi with managed schools footprint
extending across UAE. Principal Investments includes Provis, the property management business, Khidmah, the
facilities management business, Spark Security Services, and Pivot, a construction services business.
Aldar Investment3 Q1 2023 Q1 2022 % change
AED million
Revenue 1,247 859 45%
Adjusted EBITDA4 536 374 43%
Occupancy (Investment Properties)5 93% 92% -
1 EGP figures stated at the average exchange rate during the quarter (EGP/AED 0.127990)
2 EGP figures stated based on exchange rate as at 31/03/2023 (EGP/AED 0.119)
3 Excludes Pivot.
4 Aldar Investment EBITDA adjusted for fair value movements (excluding amortization of leasehold assets), reversal of impairments, and one-
off gains/losses on acquisitions.
5 Contracted or leased occupancy as of 31/03/2023.▪ Aldar Investment’s Q1 2023 revenue reached AED 1.2 billion, representing a 45% YoY growth
while Q1 2023 Adj. EBITDA rose 43% YoY to AED 536 million. The standout performance was
driven by higher occupancy rates, strong rental rates, and significant contributions from new
acquisitions across the portfolio.
▪ The Investment Properties Q1 2023 Adj. EBITDA6 increased 16% YoY to AED 347 million. This
was primarily driven by higher occupancy and rental rates across the portfolio, as well as positive
contributions from new acquisitions. Occupancy across the portfolio rose to 93% compared with
92% for the same period last year.
˗ Residential Q1 2023 Adj. EBITDA declined 11% YoY to AED 95 million, mainly attributed
to the sale of strata units. The overall portfolio showed continued strength as NOI increased
by 2% on a like-for-like basis and occupancy reached 95%. This is due to the excellent
location of its prime residential communities, unwavering focus on delivering high quality,
and enduring commitment to providing an exceptional customer experience.
˗ Retail Q1 2023 Adj. EBITDA held firm at AED 117 million supported by a strong occupancy
rate at 90%. Tenant sales and footfall in Yas Mall rose 30% and 48% respectively.
Meanwhile, the occupancy rate at Yas Mall stood at 99%, representing a 3-percentage
point increase compared to the same period last year.
˗ Commercial Q1 2023 Adj. EBITDA increased 89% YoY to AED 141 million driven primarily
by the successful execution of Aldar’s leasing strategy and the ongoing high demand for
prime Grade A office space in Abu Dhabi. Since the time of acquisition, market leasing rates
at the ADGM office towers have increased by more than 10%, with occupancy rising to 97%
from 79%. Likewise, occupancy at International Tower and HQ Building increased to 91%
and 92% respectively driven by higher leases from both global corporate firms and GREs.
Al Maryah Tower, set to be tenant-ready in August 2023, continues to benefit from the
strong leasing pipeline with the emergence of Grade A commercial pre-leasing market in
Abu Dhabi.
˗ Aldar Logistics recorded a Q1 2023 Adj. EBITDA of AED 13 million. Occupancy across
the logistics portfolio stood at 89%.
˗ In April, Moody’s reaffirmed Aldar Investment Properties’ (AIP) Baa1 rating with stable
outlook citing AIP’s strong market position in Abu Dhabi, AIP’s high quality and diversified
investment property portfolio, and the ongoing recovery and positive real estate market
outlook in Abu Dhabi.
▪ The Hospitality and Leisure business continues to benefit from a busy entertainment, leisure, and
business events calendar and the return of travel and tourism more broadly. Q1 2023 EBITDA
surged 417% YoY to AED 116 million driven by positive contributions from new acquisitions as well
as higher occupancy and average daily rates (ADR). Occupancy across the portfolio stood at 74%,
up from 69% as at the end of Q1 2022. ADR increased to AED 596 across the portfolio, up 65%
compared to the same period last year.
▪ Aldar Education Q1 2023 EBITDA increased 14% YoY to AED 41 million driven by a 25% YoY
increase in enrolments to just under 33,000 students across 27 operated and managed schools, up
from over 26,000 students and 20 schools as at the end of Q1 2022.
▪ The Principal Investments7 witnessed a 96% YoY increase in Q1 2023 EBITDA to AED 32 million
largely driven by contributions from recent acquisitions – which have added considerable scale to
the platform – and significant growth in the value of contracts.
6 EBITDA adjusted for fair value movements (excluding amortization of leasehold assets), reversal of impairments, and one-off gains/losses
on acquisitions.
7 Excluding PivotESG Highlights
As one of the UAE’s leading real estate developers, Aldar has a duty to uphold best practice
international ESG standards. ESG is a core pillar of the company’s long-term growth strategy, with
strong governance and responsible environmental and social impact integrated into its
investment processes and business decisions. Highlights of Aldar’s ESG activities this quarter
include:
▪ In January, Aldar launched its Net Zero Plan, with a commitment to becoming a Net Zero carbon
business (“Net Zero”) across its Scope 1, Scope 2, and Scope 3 greenhouse gas (“GHG”) emissions
by 2050. Aldar also set science-aligned 2030 interim targets, which will see it achieve Net Zero in
its Scope 1 and Scope 2 GHG emissions and deliver a 45% reduction in the intensity of its Scope 3
GHG emissions relative to the company’s 2021 baseline.
▪ In February, Aldar and the Ministry of Climate Change and Environment (‘MOCCAE’) launched a
Real Estate Climate Pledge. By signing the Pledge, the signatories will be supporting the UAE’s Net
Zero by 2050 Strategic Initiative through a commitment to publishing their own decarbonisation
targets before COP 28 as well as sharing data and best practices to help improve carbon emissions
and reporting throughout the lifecycle of a real estate asset.
▪ In Q1 2023, Aldar renewed its strategic partnership with Special Olympics UAE until 2025 and
reinforced its long-standing partnership with Emirates Red Crescent by signing a new year-long
agreement to cooperate on humanitarian efforts.
▪ At the end of the first quarter, UAE Nationals represented 41% of Aldar’s head office employees,
with Emiratis now forming 66% of Aldar’s leadership team. Aldar also received awards from NAFIS
during Q1 in recognition of outstanding Emiratisation efforts within the private sector.
-ENDS-
For further information, please contact:
Media
Obaid Al Yammahi Sarah Abdelbary
Aldar Properties Brunswick
+971 2 810 5555 +971 2 234 4600
aldar@brunswickgroup.com
Investor Relations
Omar Nashaat
Aldar Properties
+971 2 810 5555
About Aldar
Aldar Properties PJSC is the leading real estate developer, investor, and manager in the UAE with a diversified and sustainable
operating model centered around two core businesses: Aldar Development and Aldar Investment.
Aldar Development is a master developer of integrated, liveable, and thriving communities across Abu Dhabi’s most desirable
destinations, including Yas Island, Saadiyat Island, Al Raha, and Reem Island. It is responsible for developing Aldar’s c. 69
million sqm land bank and includes three businesses: Aldar Projects, which is Aldar's dedicated project delivery arm and the
manager of its project management business; Aldar Ventures, which incubates and nurtures new business opportunities and
innovation areas; and Aldar Egypt, the platform focused on developing mixed-use communities in Egypt.
Aldar Investment houses Aldar’s core asset management business comprising over AED 32 billion portfolio of investment
grade and income-generating assets diversified across retail, residential, commercial, hospitality, and logistics segments. Aldar
Investment also manages three core platforms: Aldar Education, Aldar Estates, and Aldar Hospitality and Leisure. AldarEducation includes Aldar’s entire educational portfolio, with almost 33,000 students across 27 operated and managed schools,
and a growing network of 3,000 educators from over 100 nationalities, offering a wide range of curriculum and ancillary services
such as a Teacher Training Academy. Aldar Estates consolidates Aldar’s Retail Operations alongside existing Residential and
Commercial real estate operations within Provis and will further include Community Management under one integrated
property management platform. Aldar Hospitality and Leisure looks after Aldar’s portfolio of hotel and leisure assets, which
are anchored around Yas Island and Saadiyat, in addition to Ras Al Khaimah. It includes Aldar’s portfolio of 13 hotels,
comprising over 4,250 hotel keys and managing operations across golf courses, beach clubs, and marinas.
Aldar’s shares are traded on the Abu Dhabi Securities Exchange (Stock quote: ALDAR:UH), and is a profitable, cash-
generative business that provides recurring revenues, and benefits from a diverse and supportive shareholder base. Aldar
operates according to high standards of corporate governance and is committed to operating a long-term and sustainable
business in order to provide ongoing value for its shareholders.
Aldar is driven by a vision to be a leading real estate developer and manager in the region by playing a key role in the
development of quality, comfortable, desirable destinations that people can live in, work at and visit.
For more information on Aldar please visit www.aldar.com or follow us on: | positive |
Q2 2023 Results Report
Fertiglobe Reports Q2 2023 Results
Highlights:
•
Fertiglobe reported Q2 2023 revenues and adjusted EBITDA at $552 million and $218 million, respectively.
Adjusted net profit and free cash flows during the quarter were $84 million and $60 million, respectively.
•
Fertiglobe's H1 2023 revenues and adjusted EBITDA were $1,245 million and $516 million, respectively.
Adjusted net profit was $219 million in H1 2023, while free cash flows were $331 million.
•
In line with guidance, Fertiglobe's management proposed H1 2023 dividends of at least $250 million (subject
to Board approval in September 2023), underscoring the company's commitment to creating and returning
shareholder value. The exact payment date in October 2023 will be announced following Board approval.
•
Fertiglobe is making progress with its cost optimization initiatives and is on track to deliver $50 million
in annualized run rate savings as of the end of 2024. Approximately 25-30% of the run rate savings are
expected to be realized by the end of 2023, with the rest to be realized over 2024.
•
Fertiglobe is making progress with its sustainability-focused projects and is expected to start the Front End
Engineering Design (FEED) process for its green hydrogen to ammonia projects in the UAE and Egypt
during H2 2023. In addition, the final investment decision (FID) on the Ta'ziz 1mtpa low carbon ammonia
project is expected in the coming months.
•
Market Outlook:
◦
Nitrogen prices bottomed in Q2 and have begun rebounding into Q3, with Egypt urea prices up ~60%
from trough levels in June 2023, underpinned by demand recovery, record low inventories and very
tight supply.
◦
Decade-low grain stocks driving rising crop futures and favorable farm economics incentivize significant
increases in nitrogen demand, and support nitrogen price recovery
◦
New capacity that was added and ramped up during 2022 and early 2023 has been absorbed, with
limited new supply additions expected in the next four years
◦
Warm weather is leading to higher gas demand for residential cooling, and causing reductions in global
ammonia production in some countries as a result
Abu Dhabi, UAE – 02 August 2023: Fertiglobe (ADX: FERTIGLB), the strategic partnership between ADNOC
and OCI Global, the world’s largest seaborne exporter of urea and ammonia combined, the largest nitrogen
fertilizer producer in the Middle East and North Africa (“MENA”) region, and an early mover in sustainable
ammonia, today reported Q2 2023 revenue of $552 million, adjusted EBITDA of $218 million, adjusted net profit of
$84 million, and free cash flow of $60 million. Q2 2023 results were impacted by lower selling prices, as volatility
in European gas prices continued while markets saw increased supply from capacities commissioned in 2022,
coinciding with the end of the demand season in the northern hemisphere.
Ahmed El-Hoshy, CEO of Fertiglobe, commented:
“We are pleased to see that nitrogen markets bottomed during the second quarter and are tightening rapidly, with
a strong price trajectory in recent weeks despite the traditional summer lull for fertilizers. Looking ahead, we
believe that limited incremental supply additions over the next several years, coupled with healthy farm economics,
which incentivize nitrogen fertilizer application, and elevated marginal production costs in Europe continue to
1Q2 2023 Results Report
support a favorable nitrogen outlook in the medium to longer term. We expect more permanent closures of
European marginal production, if ammonia pricing continues to persist below marginal production costs.
Our overall sales volumes were lower compared to Q2 2022, primarily due to a higher base effect given deferrals
from Q1 to Q2 last year. However, going into H2 2023, we are well-positioned to service demand emerging
from key regions, leveraging our centralized distribution capabilities and targeting demand centers that offer the
highest netbacks, further supported by the reinstatement of urea and ammonia import duties into Europe.
We are excited to continue to diversify our product offering via Diesel Exhaust Fuel (DEF) sales from our
plants in Egypt into Europe, where demand for the product is supported by increasingly stricter emission
regulations. We also continue to progress our sustainability-focused projects, including the Ta'ziz 1mtpa low
carbon ammonia project and the low carbon ammonia pilot in the UAE at Fertil. We expect to commence the Front
End Engineering Design (FEED) process for our green hydrogen project in the UAE and our full scale green
hydrogen project in Egypt during H2 2023. We continue to take significant steps towards achieving a more
sustainable footprint for our production as well as for others. We look forward to providing further updates in the
coming months.
Our solid balance sheet position and cash flow management allow us to pursue these growth initiatives while
also balancing shareholder returns. We are pleased to propose H1 2023 dividends of at least $250 million or the
equivalent of at least AED 11 fils per share, subject to board approval, expected to be paid during October 2023.
As previously highlighted, we are actively implementing several management initiatives aimed at supporting our
free cash generation across cycles. Our cost optimization initiatives target $50 million in recurring annualized
savings by the end of 2024, with 25-30% of these savings planned to be achieved this year. Our key focus areas
include operating model enhancements and improvements in logistical capabilities (together contributing ~60% of
the run rate savings) as well as operational cost and spending efficiencies. In addition, we are already starting to
see positive results from our manufacturing improvement plan, and are on track to deliver operational and cost
efficiencies by 2025. The commitment of the Fertiglobe team to maintaining best-in-class safety, performance, and
excellence standards is a significant factor in driving our success, and I am very thankful for their dedication.”
Market Outlook
Fertiglobe believes the outlook for nitrogen markets continues to be supported by crop fundamentals,
elevated European gas pricing and tightening supply dynamics in the medium-term
•
Nitrogen prices bottomed in Q2 and have begun rebounding into Q3, underpinned by several
factors, including:
◦
Demand recovery: The recent decline in nitrogen pricing has improved affordability for farmers
by ~20% since January 2023 and more than 30% since Q2 2022, accelerating demand growth
for nitrogen
◦
Record low inventory levels: The 2022-2023 fertilizer application season concluded with the lowest
inventory levels in the past five years particularly in North America
◦
Tightening supply: The new capacity that was added and ramped up during 2022 and early 2023 has
been absorbed, with limited new supply additions in the next four years
◦
El Niño impact: The rapid emergence of El Niño has raised concerns about crop yields in the
southern hemisphere, which could lead to higher crop prices, supporting the use of nitrogen fertilizers
in the medium-term; it is also reducing gas availability for the production of ammonia
2Q2 2023 Results Report
◦
Normalization of trade flows: Following the EU's removal of duty suspension on ammonia and
urea in June 2023, with North African product exempt, Fertiglobe is expected to benefit from a
normalization of trade flows
◦
India imports to step up: it is expected that import demand from India will increase from 2.5 Mt in
H1 to ~4 Mt urea in H2 2023, with potential further upside in H2 due to recent rains and flooding, an
earlier-than-expected new tender, and recent reduced domestic production run-rates
•
Medium to long term nitrogen fundamentals also remain healthy, with anticipated demand recovery
supporting the rebuilding of global grain stocks and a return of industrial demand:
◦
Global grain stock-to-use ratios remain at the lowest levels in 20 years, and it will likely take at least
until 2025 to replenish stocks
◦
Forward grain prices (US corn futures >$5/bushel to the end of 2025 compared to $3.7/bushel during
2015 - 2019, and US wheat futures >$7/bushel, compared to $4.8/bushel during 2015 - 2019) support
farm incomes and incentivize nitrogen demand to be above historical trend levels
◦
Ammonia markets appear to have stabilized, with higher cost economics, particularly in the East
of Suez region, setting a firm floor. The increased fertilizer demand due to improved affordability is
currently offsetting the lag in industrial demand recovery.
■ Industry consultants expect a recovery in global ammonia trade from trough levels of ~17 million
tons in 2022 and 2023 back towards historical levels of ~19+ million tons per annum
•
Nitrogen supply is expected to be tighter over 2023 – 2027:
◦
In 2022, 6 million tons of new urea capacity were commissioned, with some plants ramping up in
2023, but now largely absorbed
◦
Industry consultants do not anticipate any major greenfield urea supply additions in 2023 and limited
additions from 2024 to 2027, located mostly in Russia, generating a global supply/demand gap of
~4 million tons
◦
Chinese urea exports are expected to remain low over the medium term, in the range of 3 mtpa
•
Feedstock pricing is expected to remain well above historical averages:
◦
Despite a recent drop in gas prices, 2023 - 2025 forward European gas prices are c.$15/mmBtu (or
c.3x higher than 2015-2019), with higher prices anticipated for next winter
◦
It is expected that El Niño could increase the demand for natural gas for summer cooling, which could
result in upward pressure on natural gas prices and increased marginal cost of nitrogen production
◦
Current ammonia prices are below the marginal cash cost producer in Europe:
■ The gas forwards imply marginal cost support levels for ammonia of c.$750/t (including full
impact CO ) and ~$590/t (excluding CO ) for next winter and 2024, which could result in
2 2
temporary or permanent closures of European marginal production if pricing remains below cost
for an extended period
3Q2 2023 Results Report
Dividends and capital structure
As at the end of June 2023, Fertiglobe reported a net debt position of $66 million, compared to a net cash of
$287 million as of 31 December 2022, allowing the company to balance future growth opportunities and dividend
pay-out. Fertiglobe's management proposed H1 2023 dividends of at least $250 million, in line with guidance,
subject to board approval in September 2023. Payment is expected to follow in October 2023.
Cost savings
Fertiglobe recently launched an initiative to further optimize its cost structure and reinforce its top quartile cash
cost positioning, targeting $50 million in recurring annualized savings by the end of 2024, of which 25-30%
are planned to be achieved this year. Key focus areas will be operating model enhancements, improvement
in logistical capabilities and operational cost and spend efficiencies. In addition, Fertiglobe's manufacturing
improvement plan is on track to deliver operational and cost efficiencies by 2025.
4Q2 2023 Results Report
Consolidated Financial Results at a Glance1
Financial Highlights ($ million, unless otherwise stated)
$ million unless otherwise stated Q2 2023 Q2 2022 % Δ H1 2023 H1 2022 % Δ
Revenue 551.5 1,471.3 (63%) 1,245.2 2,656.1 (53%)
Gross profit 174.4 747.8 (77%) 443.5 1,335.6 (67%)
Gross profit margin 31.6% 50.8% 35.6% 50.3%
Adjusted EBITDA 218.2 770.0 (72%) 515.5 1,394.6 (63%)
Adjusted EBITDA margin 39.6% 52.3% 41.4% 52.5%
EBITDA 217.3 770.0 (72%) 512.5 1,389.6 (63%)
EBITDA margin 39.4% 52.3% 41.2% 52.3%
Adjusted net profit attributable to shareholders 83.9 438.2 (81%) 219.3 799.2 (73%)
Reported net profit attributable to shareholders 79.2 429.4 (82%) 214.9 786.0 (73%)
Earnings per share ($)
Basic earnings per share 0.010 0.052 (82%) 0.026 0.095 (73%)
Diluted earnings per share 0.010 0.052 (82%) 0.026 0.095 (73%)
Adjusted earnings per share 0.010 0.053 (81%) 0.026 0.096 (73%)
Earnings per share (AED)
Basic earnings per share 0.035 0.190 (82%) 0.095 0.348 (73%)
Diluted earnings per share 0.035 0.190 (82%) 0.095 0.348 (73%)
Adjusted earnings per share 0.035 0.194 (82%) 0.095 0.354 (73%)
Free cash flow 59.9 788.7 (92%) 331.3 1,309.5 (75%)
Capital expenditure 34.5 14.6 136% 47.2 24.0 97%
Of which: Maintenance Capital Expenditure 30.7 13.0 136% 41.7 19.8 111%
30 June 23 31 Dec 22 % Δ
Total Assets 5,451.2 5,530.6 -1%
Gross Interest-Bearing Debt 1,620.7 1,155.2 40%
Net Debt/(Cash) 66.3 (286.8) n/m
Q2 2023 Q2 2022 % Δ H1 2023 H1 2022 % Δ
Sales volumes (‘000 metric tons)
Fertiglobe Product Sold 1,414 1,540 (8%) 2,777 2,794 (1%)
Third Party Traded 148 236 (37%) 313 512 (39%)
Total Product Volumes 1,562 1,776 (12%) 3,090 3,306 (7%)
1 Unaudited
5Q2 2023 Results Report
Operational Highlights
Operational Performance Highlights:
•
12-month rolling recordable incident rate to 30 June 2023 of 0.13 incidents per 200,000 manhours.
•
Ammonia and urea production volumes were higher YoY in Q2 2023 despite the turnaround at
Sorfert (Algeria).
•
Fertiglobe's Q2 2023 performance was impacted by lower selling prices as well as lower sales volumes
compared to the same period last year, primarily due to a high base effect given deferrals from Q1 2022 to
Q2 2022 and higher ammonia ending inventories in Q2 2023.
•
Fertiglobe’s total own-produced sales volumes were down 8% to 1,414kt in Q2 2023 vs Q2 2022, driven by:
◦
A 19% decrease in ammonia own-produced sales volumes to 290kt from 357kt in Q2 2022
◦
A 6% decrease in urea own-produced sales volumes to 1,117kt YoY compared to 1,183kt in Q2 2022
•
Traded third party volumes decreased 37% YoY to 148kt in Q2 2023, compared to 236kt in Q2 2022.
•
Total own-produced and traded third party volumes of 1,562kt were down 12% in Q2 2023 compared to
Q2 2022.
•
In H1 2023, Fertiglobe’s total own-produced sales volumes were down marginally by 1% to 2,777kt
compared to H1 2022, driven by:
◦
A 9% decrease in ammonia own-produced sales volumes to 526kt from 580kt in H1 2022, and
◦
Relatively unchanged urea own-produced sales volumes of 2,244kt.
•
Traded third party volumes were down 39% YoY to 313kt in H1 2023.
•
Total own-produced and traded third party volumes of 3,090kt were down 7% in H1 2023 compared to
H1 2022.
6Q2 2023 Results Report
Product sales volumes
Sales volumes ('000 metric tons) Q2 2023 Q2 2022 % Δ H1 2023 H1 2022 % Δ
Own Product
Ammonia 290 357 (19%) 526 580 (9%)
Urea 1,117 1,183 (6%) 2,244 2,214 1%
DEF 7 - n/m 7 - n/m
Total Own Product Sold 1,414 1,540 (8%) 2,777 2,794 (1%)
Third-Party Traded
Ammonia 78 27 189% 109 79 38%
Urea 70 209 (66%) 204 433 (53%)
Total Traded Third-party Product 148 236 (37%) 313 512 (39%)
Total Own Product and Traded Third-party 1,562 1,776 (12%) 3,090 3,306 (7%)
Benchmark prices1
Q2 '23 Q2 '22 % Δ H1 2023 H1 2022 % Δ Q1 '23 % Δ
Ammonia NW Europe, FOB $/mt 386 1,240 (69%) 537 1,288 (58%) 688 (44%)
Ammonia Middle East, FOB $/mt 256 965 (73%) 436 992 (56%) 615 (58%)
Granular Urea Egypt, FOB $/mt 335 795 (58%) 372 818 (55%) 409 (18%)
Granular Urea Middle East, FOB $/mt 302 721 (58%) 330 748 (56%) 359 (16%)
Natural gas TTF (Europe) $ / mmBtu 11.4 30.8 (63%) 14.1 31.5 (55%) 16.8 (32%)
Natural gas Henry Hub (US) $ / mmBtu 2.3 8.1 (72%) 2.6 6.3 (59%) 2.8 (18%)
1Source: CRU, MMSA, ICIS, Bloomberg
In Q2 2023, ammonia Middle East benchmark were down 73% YoY, while the urea Egypt benchmark price was
down 58%. Compared to Q1 2023, the ammonia Middle East benchmark was down 58%, while the urea Egypt
benchmark price was down 18%.
The decrease in sales volumes and selling prices during the quarter resulted in a 63% YoY decrease in revenues
to $552 million in Q2 2023. This translated into a 72% decline in adjusted EBITDA to $218 million in Q2 2023 from
$770 million in Q2 2022. As a result, Fertiglobe’s adjusted EBITDA margin dropped to 40% in Q2 2023 from 52%
in Q2 2022.
7Q2 2023 Results Report
Segment overview Q2 2023
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 502.9 48.6 - 551.5
Gross profit 175.6 (1.2) - 174.4
Operating profit 161.8 (2.9) (10.5) 148.4
Depreciation & amortization (66.8) (1.2) (0.9) (68.9)
EBITDA 228.6 (1.7) (9.6) 217.3
Adjusted EBITDA 228.6 (1.7) (8.7) 218.2
Segment overview Q2 2022
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 1,275.4 195.9 - 1,471.3
Gross profit 749.8 (2.0) - 747.8
Operating profit 724.5 (2.0) (15.3) 707.2
Depreciation & amortization (62.5) - (0.3) (62.8)
EBITDA 787.1 (2.0) (15.1) 770.0
Adjusted EBITDA 787.1 (2.0) (15.1) 770.0
Segment overview H1 2023
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 1,112.8 132.4 - 1,245.2
Gross profit 441.5 2.0 - 443.5
Operating profit 403.8 0.3 (27.9) 376.2
Depreciation & amortization (132.4) (1.7) (2.2) (136.3)
EBITDA 536.2 2.0 (25.7) 512.5
Adjusted EBITDA 538.3 2.0 (24.8) 515.5
Segment overview H1 2022
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 2,265.8 390.3 - 2,656.1
Gross profit 1,337.4 3.2 (5.0) 1,335.6
Operating profit 1,291.5 3.2 (29.9) 1,264.8
Depreciation & amortization (124.4) - (0.4) (124.8)
EBITDA 1,415.9 3.2 (29.5) 1,389.6
Adjusted EBITDA 1,415.9 3.2 (24.5) 1,394.6
8Q2 2023 Results Report
Financial Highlights
Summary results
Consolidated revenue decreased by 63% to $552 million in the second quarter of 2023 compared to the same
quarter in 2022, driven by lower selling prices and sales volumes.
Adjusted EBITDA declined by 72% YoY to $218 million in Q2 2023 compared to $770 million in Q2 2022.
Q2 2023 adjusted net profit attributable to shareholders was $84 million compared to an adjusted net profit
attributable to shareholders of $438 million in Q2 2022. Reported net profit attributable to shareholders was
$79 million in Q2 2023 compared to a net profit attributable to shareholders of $429 million in Q2 2022.
Consolidated statement of income
$ million Q2 2023 Q2 2022 H1 2023 H1 2022
Net revenue 551.5 1,471.3 1,245.2 2,656.1
Cost of sales (377.1) (723.5) (801.7) (1,320.5)
Gross profit 174.4 747.8 443.5 1,335.6
Other income 1.6 - 1.6 -
SG&A (27.6) (39.6) (68.8) (70.0)
Other expense - (1.0) (0.1) (0.8)
Adjusted EBITDA 218.2 770.0 515.5 1,394.6
EBITDA 217.3 770.0 512.5 1,389.6
Depreciation & amortization (68.9) (62.8) (136.3) (124.8)
Operating profit 148.4 707.2 376.2 1,264.8
Interest income 3.4 0.5 5.7 0.9
Interest expense (31.2) (25.2) (52.7) (42.0)
Other finance (expense)/income 4.4 5.3 (17.2) 21.2
Net finance costs (23.4) (19.4) (64.2) (19.9)
Net profit before tax 125.0 687.8 312.0 1,244.9
Income tax (16.6) (64.7) (14.8) (154.7)
Net profit 108.4 623.1 297.2 1,090.2
Non-Controlling Interest (29.2) (193.7) (82.3) (304.2)
Net profit attributable to shareholders 79.2 429.4 214.9 786.0
Adjusted net profit attributable to shareholders 83.9 438.2 219.3 799.2
9Q2 2023 Results Report
Reconciliation to Alternative Performance Measures
Adjusted EBITDA
Adjusted EBITDA is an Alternative Performance Measure (APM) that intends to give a clear reflection of
underlying performance of Fertiglobe’s operations. The main APM adjustments at the EBITDA level relate to
the movement in provisions and pre-operating expenditures related to projects during the quarter.
Reconciliation of reported operating income to adjusted EBITDA
$ million Q2 2023 Q2 2022 H1 2023 H1 2022 Adjustment in P&L
Operating profit as reported 148.4 707.2 376.2 1,264.8
Depreciation and amortization 68.9 62.8 136.3 124.8
EBITDA 217.3 770.0 512.5 1,389.6
APM adjustments for:
Movement in provisions - - 2.1 5.0 Cost of sales
Pre-operating expenditures related to projects 0.9 - 0.9 - SG&A expense
Total APM adjustments 0.9 - 3.0 5.0
Adjusted EBITDA 218.2 770.0 515.5 1,394.6
Adjusted net profit attributable to shareholders
At the net profit level, the main APM adjustments relate to the impact on non-cash foreign exchange gains and
losses on USD exposure as well as non-controlling interest.
Reconciliation of reported net profit to adjusted net profit
$ million Q2 2023 Q2 2022 H1 2023 H1 2022 Adjustment in P&L
Reported net profit attributable to shareholders 79.2 429.4 214.9 786.0
Adjustments for:
Adjustments at EBITDA level 0.9 - 3.0 5.0
Finance income
Forex loss/(gain) on USD exposure 10.6 (18.4) 11.3 (33.0) and expense
Other financial expense - 9.7 - 9.7 Finance expense
Uncertain tax
Non-controlling interest (6.8) 17.5 (9.9) 31.5 positions / minorities
Total APM adjustments at net profit level 4.7 8.8 4.4 13.2
Adjusted net profit attributable to shareholders 83.9 438.2 219.3 799.2
10Q2 2023 Results Report
Free Cash Flow and Net Debt/(Cash)
Free cash flow before growth capex amounted to $60 million during Q2 2023, compared to $789 million during
the same period last year, reflecting performance for the quarter, dividends paid to non-controlling interest and
withholding tax, working capital outflows, maintenance capital expenditures, interest and lease payments.
Total cash capital expenditures including growth capex were $35 million in Q2 2023 compared to $15 million in
Q2 2022, of which $31 million was related to maintenance capital expenditures, compared to $13 million in the
previous year. For 2023, management maintains its guidance for capital expenditures (excluding growth capital
expenditure) of $100-130 million.
Reconciliation of EBITDA to Free Cash Flow and Change in Net Debt/(Cash)
$ million Q2 2023 Q2 2022 H1 2023 H1 2022
EBITDA 217.3 770.0 512.5 1,389.6
Working capital (16.7) 93.0 (6.8) 13.6
Maintenance capital expenditure (30.7) (13.0) (41.7) (19.8)
Tax paid (11.1) (77.3) (32.8) (133.7)
Net interest paid (18.2) (11.3) (26.8) (23.0)
Lease payments (4.9) (5.7) (10.9) (7.0)
Dividends paid to non-controlling interests and withholding tax (83.1) (63.5) (83.1) (67.3)
Ecremage 7.3 96.5 20.9 157.1
Free Cash Flow 59.9 788.7 331.3 1,309.5
Reconciliation to change in net debt/(cash):
Growth capital expenditure (3.8) (1.6) (5.5) (4.2)
Other non-operating items (1.1) (2.9) 13.1 (2.9)
Net effect of movement in exchange rates on net debt/(cash) 15.3 0.5 9.4 (25.2)
Dividend to shareholders (700.0) (340.0) (700.0) (340.0)
Other non-cash items (0.8) (2.1) (1.4) (5.6)
Net Cash Flow in Net Debt/(Cash) (630.5) 442.6 (353.1) 931.6
11Q2 2023 Results Report
Investor and Analyst Conference Call
On 2 August 2023 at 3:00 PM UAE (12:00 PM London, 9:00 AM New York), Fertiglobe will host a conference call
for investors and analysts. To access the call please dial:
International: +44 20 3936 2999
UAE: +971 800 0357 04553
UK: +44 20 3936 2999 / Toll free: +44 808 189 0158
United States: +1 646 664 1960 / Toll Free: +1 855 9796 654
Passcode: 996655
Participants may also join via the webcast. Please pre-register and join here.
About Fertiglobe:
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, and an early mover in
sustainable ammonia. Fertiglobe’s production capacity comprises of 6.6 million tons of urea and merchant
ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria, making it the largest producer of
nitrogen fertilizers in the Middle East and North Africa (MENA), and benefits from direct access to six key ports
and distribution hubs on the Mediterranean Sea, Red Sea, and the Arab Gulf. Headquartered in Abu Dhabi
and incorporated in Abu Dhabi Global Market (ADGM), Fertiglobe employs more than 2,700 employees and
was formed as a strategic partnership between OCI Global (“OCI”) and the Abu Dhabi National Oil Company
(“ADNOC”). Fertiglobe is listed on the Abu Dhabi Securities Exchange (“ADX”) under the symbol “FERTIGLB” and
ISIN “AEF000901015. To find out more, visit:www.fertiglobe.com.
For additional information, contact:
Fertiglobe Investor Relations: For additional information on Fertiglobe:
Rita Guindy www.fertiglobe.com
Director
Email: rita.guindy@fertiglobe.com
Hans Zayed
Director
Email: hans.zayed@fertiglobe.com
Investor.relations@fertiglobe.com
12 | positive |
Zoho Sign Document ID: JURBO7OBCM9VCIPMS3XS727FA22FYPZUECHBABIJW3M
discussion report and analysis of the board of directors for Al
Wathba National Insurance Company (PJSC)
Date 11th Nov,2022
Name of the Listed Company Al Wathba National Insurance Company (PJSC)
The period of the financial
Q3, 2022 Financials
statements covered by the report
GWP: AED 237.62 M
Overview of the main results Net Underwriting Income: AED 2.98 M
during the financial period Net Investment Income: AED 29.36 M
Net Profit: 32.34 M
Securities issued during the
NA
financial period
Summary of the most
important non-financial events IFRS 17 implementation is in progress.
and developments during the AWNIC extends self-service portal to corporate clients.
financial period
During this period, we have achieved total premiums of
237.62 million and insurance profit of 2.98 million dirhams.
Summary of operational
performance during the
The company has also registered net Investment profit of
financial period
29.36 million.
Net profit for the period is AED 32.34 million dirhams
Summary of profit and loss
compared to net profit of AED 173.95 million dirhams for the
during the financial period
previous period.
Summary of financial position Total Deposits & Cash: AED 158.36 M
as at the end of the financial Total Technical Reserve: AED 339.63 M
period Total Share Holders Equity: AED 961.50 M
Net Cash generated from operating Activities: AED (54.95) M
Summary of cash flows during
Net Cash Generated in Investing Activities: AED 145.28 M
the financial period
Net Cash Generated in Financing Activities: AED (74.86) M
Page 1 of 2Zoho Sign Document ID: JURBO7OBCM9VCIPMS3XS727FA22FYPZUECHBABIJW3M
GWP Growth: (12) %
Net Loss Ratio: 60.82%
Main performance indicators
Net Expense Ratio: 37.02%
Combined Ratio: 97.84%
Expectations for the sector and Motor insurance premiums are expected to go back to pre-
the company's role in these pandemic levels on account of pressure in margins and
expectations escalation in servicing costs.
GDP of UAE is expected to grow more than 5% for the current
fiscal year and the economic buoyancy is expected to continue
Expectations regarding the on account of visa reforms and FDI flows in real estate.
economy and its impact on the Premium growth in the industry is expected to continue and
company and the sector the market is expected to see more consolidations in FY 2023
on account of pressures on solvency ratios and regulatory
changes such as IFRS 17.
AWNIC is revisiting its motor portfolio strategy and is
Future for growth and changes
expected to continue its growth on the commercial insurance
in operations in future periods
portfolio.
The size and impact of current
and projected capital Net Capital expenses for the period was AED 1 Million.
expenditures on the company
The developments of the
implementation of projects,
plans and transactions and
Board is evaluating the impact of rising interest rates and its
deals that were discussed by
impact on the current loan facilities.
the company's board of
directors in the report for the
previous fiscal year
Bassam Chilmeran
Chief Executive Officer
Page 2 of 2 | positive |
Commercial Bank International
2022 Second Quarter Financial Results
Management Discussion and Analysis Report
The content is classified as PublicCBI Announces Q2 2022 Net Profit of AED 34 million
Dubai, UAE, 27th July 2022: Commercial Bank International (‘CBI’ or ‘the Bank’) has announced its
second quarter 2022 financial results.
Key financial result highlights (quarter-on-quarter changes from Q1 2022 to Q2 2022 respectively):
• Net profit increased by 67% from AED 20.6 million in Q1 2022 to AED 34.4 million in Q2 2022.
• Operating profit increased by 82% from AED 40.3 million to AED 73.2 million.
• Net operating income increased by 42% from AED 110.8 million to AED 157.6 million.
Commenting on the Bank’s Q2 performance, Ali Sultan Rakkad Al Amri, CEO of Commercial Bank
International, said: “We continue to support our customers and contribute strongly to economic growth in
line with the UAE’s strategy that focuses on growth and development. By further strengthening our core
client-centric business model, we have increased our profitability substantially in the second quarter,
delivering a net profit of AED 34 million, mainly through loan growth. Despite the ongoing challenges in the
global macroeconomic environment, we will continue to focus on providing our customers with high quality
services and help them realize their ambitions.”
---ENDS---
Ali Sultan Rakkad Al Amri
Chief Executive Officer
The content is classified as Public | neutral |
Press release Emirates
REIT
g. MANAGED BY EQDITATIVA GROUP
13 June 2023
Equitativa reports healthy Q1 2023 results for Emirates REIT:NAV per share increases to
USD 1.19/share.
KEY HIGHLIGHTS
ti
•Fair Value of Investment Properties up 5% year-on-year, closing at USD 797m (AED 2.9b) as at March 31, 2023.
•Net Asset Value increased by 21% year-on-year, closing at USD 380m (AED 1.4b), amounting to USD 1.19 per
share
•Occupancy stood at 84%.
•Q1 Total Property Income reached USD 17m (AED 63m).
•Net Unrealized Revaluation Gain on fair value of investment properties amounted to USD 10m (AED 38m) in
Q1.
•Q1 Net Profit amounted to USD 8m (AED 28m).
The REIT delivered net profit of USD 8 million for the first quarter of 2023 (Q1 2022: USD 23 million). A net unrealized
gain on portfolio revaluation of USD 10 million in the current period, compared to USD 20 million for the same period a
year ago, weighed on profitability. This reflects the strong rebound in commercial property valuations in 2022 which is
now beginning to normalize.
Occupancy across Emirate’s REIT’s stood at 84% as of March 31, 2023 as demand for the REIT’s portfolio of high quality
commercial and retail assets remained strong. On a like-for-like basis (excluding Jebel Ali School, sold in May 2022), this
represents a year-on-year increase of 5 percentage points. Overall demand remains supported by the UAE’s robust
economic outlook which has led to a significant increase in new businesses entering or expanding in the country.
As a result, Emirates REIT’s core rental, fee, and other income for the first quarter of 2023 was a healthy USD 17 million,
compared to USD 15 million for the first quarter of 2022 excluding Jebel Ali School, representing a year-on-year
increase of 14%. The Net Property Income closed at USD 14 million, increased from the USD 12 million achieved in Q1
1,1
2022 excluding Jebel Ali School, which is a like-for-like increase of 16%.
The REIT maintained a strong focus on cost optimisation and discipline, resulting in a 5% year-on-year decline in Fund
Expenses to USD 4 million in Q1 2023. This helped the REIT report a 3% year-on-year increase in operating profit to
USD 10 million.
The fair value of the REIT’s portfolio as at 31 March 2023 was USD 797 million, representing a 5% increase year-on-year.
The Net Asset Value increased 21% year-on-year to USD 380 million, equating to USD 1.19 per share.
Commenting on Emirates REIT’s performance, Sylvain Vieujot, Executive Deputy Chairman of Equitativa, said: “Emirates
REIT delivered a healthy set of operational results for the first quarter of 2023, demonstrating the continued strong
demand we’ve seen for our portfolio of high quality commercial and retail real estate assets. Occupancy across our
portfolio continues to increase as robust local economy continues to drive demand for commercial real estate in the
UAE and we remain optimistic that the country’s status as a leading global commercial hub will help unlock various
strategic options for the REIT. We look forward to capitalizing on this momentum and creating further value for all of
EMIRATES REIT (CEIC) PLC I DIFC, INDEX TOWER, LEVEL 23, DUBAI, UAE I PO BOX: 482015 I REIT.AE PAGE 1 OF 2
LICENSED BY DFSAour stakeholders.
Abdullah Al Hashemi is retiring from the Investment Board after 9 years of dedicated service. We deeply appreciated
his continuous support and guidance and I would like to express him all our gratitude.
We are delighted to announce the appointment of Helal Tariq Lootah on the Investment Board.”
For further information, including the Q1 2023 Factsheet, please refer to our Investor Relations Page.
Best regards,
Investor relations
ir@reit.ae
Equitativa (Dubai) Limited
DIFC, Index Tower, Level 23, Dubai, UAE
TEL +971 4 405 REIT (+971 4 405 7348)
WEBSITE www.reit.ae
Regulated by the DFSA
Subscribe / unsubscribe to Emirates REIT's mailing list.
This message, including any attachments may contain confidential and privileged material; it is intended only for
the person to whom it is addressed. Its contents do not constitute a commitment by Equitativa (Dubai) Limited
except where provided for in a written agreement. Equitativa (Dubai) Limited assumes no liability or responsibility
for the consequences arising out of a delay and/or loss in transit of this message, or for corruption or other
error(s) arising in its transmission and for any misuse or fraudulent use which may be made thereof. If you are not
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published research and the recipient must have regard to all disclosures and disclaimers contained therein.
Equitativa (Dubai) Limited is duly licensed and regulated by the Dubai Financial Services Authority (DFSA).
ti
EMIRATES REIT (CEIC) PLC DIFC, INDEX TOWER, LEVEL 23, DUBAI, UAE PO BOX: 482015 REIT.AE PAGE 2 OF 2
I I I
LICENSED BY DFSA | positive |
Julphar
juLphar.net
Discussion report and analysis of the board of directors of the listed
public shareholding company
Date 09 November 2022
Name of the Listed Company Gulf Pharmaceutical Industries PSC julphar
The period of the financial statements
For Q3-2022
covered by the report
1. Net sales for the period reached 415.8 mAED as
compared to 362.8 mAED representing an increase of
14.6%
2. EBITDA from continuing operations reached in Q3
2022 to 47.5 mAED as compared to 40.6 mAED in Q3
2021 (EBITDA for Q3 2021 after eliminating onetime
events of acquisition and others of 59.1 mAED)
Overview of the main results during the
3. The continued growth in performance and profitability
financial period
from Q3 2022 due to:
• Increase in market share in its core markets
including United Arab Emirates, Kingdom of
Saudi Arabia and other GCC countries. Also,
overcoming geopolitical challenges in Algeria,
Lebanon, Ethiopia and Sudan
• Implementation of various cost saving initiatives
Securities issued during the financial
AED nil
period
1. Continued and increased focus on the development of
the Company's products pipeline
2. Successful licensing arrangements for the co
Summary of the most important non-
development of products
financial events and developments
3. Continued successful implementation of two-year
during the financial period
strategic turnaround plan
4. Approval of new products launches which is in line
with the strategic roadmap
Page 1 of 4
Julphar jlnh T +971 7 246 1461
POBox 997 Ras AL Khaimah djorJI jjjofj 997 ajjj 5 gala F +971 7 246 2462 cL-jujIgzUl oLxl i n I I j.4.l i JI
United Arab Emirates ozeHjcJI cwjsJI oljlolJI E info@julphar.net Gulf Pharmaceutical IndustriesJulphar
juLphar.net
The operational performance of the Company has shown a
strong and continued positive trend while overcoming
geopolitical challenges which is evident by the increase in net
Summary of operational performance sales as compared to Q3 2021.
during the financial period Q3 2022 production output remained strong with sustained
output and targeting to cross the 20 mio units milestone in
Q4 evidencing the strong progress towards strategic
roadmap
Key figures Q3 2022 Q3 2021*
Net sales (mAED) 415.8 362.8
Gross margin (%) 30.0% 24.3%
Net profit (mAED) 4.5 53.8
EBITDA from continuing 47.5 99.7
operations (mAED)
EBITDA from continuing 47.5 40.6
operations - normalized
(mAED)
Summary of profit and loss during the Plant Pharmacies LLC ("Planet") financial results were fully
financial period consolidated in julphar Group from 1 July 2021. During Q3
2022, Planet contributed 241.8 mAED in the net sales. The
Group's gross margins were affected by Planet's lower gross
margin on distribution business. However, the gross margins
continued to be sustained and reached 30.0% in Q3 2022 as
compared to 24.3% in Q3 2021 (if normalized, the gross
margins were 21.9% in Q3 2021 after eliminating the one
time events).
*after reclassification of Julphar Ethiopia as 'discontinued
operations'.
The total equity of the Group increased by 10.0 mAED and
reaching to 973.8 mAED. The increase was due to net profit
for theyear of 10.4 mAED followed by the increase in
Summary of financial position as at the
cashflow hedge reserve by 25.6 mAED. These increases were
end of the financial period
effected by sharp decline in foreign currency translation
reserve by 27.2 mAED. No significant changes in the financial
position of the Group compared to theyear-end 2021.
Summary ofcash flows during the Cashflow used in operating activities reached -45.7 mAED
financial period during the period from January to September 2022 as
Page 2 of 4
Julphar jlob T +971 7 246 1461
POBox 997 Ras AL Khaimah cboudJI jnlj 997 zujj (pgnita F+971 7 246 2462 d_jLj|gzLJI oLrl 1 n.1 J i..l. i JI
United Arab Emirates ozojuoJI cujj-qJI oljLolJI E info@juLphar.net Gulf Pharmaceutical IndustriesJulphar
juLphar.net
compared to 7.2 mAED in 2021. The cashflow from investing
activities has also contributed 23.9 mAED which is also
supported by cashflow from financing activities of 10.4
mAED.
Net sales 415.8 mAED
Main performance indicators Net profit 4.5 mAED
EBITDA from continuing operations 47.5 mAED
The size of the pharmaceutical market in Middle East &
North Africa is valued at USD 44.8 bn in 2021 and is
expected to reach USD 56 bn in 2025. The pharma market is
expected to grow at a CAGR of 5.7%.
Generics are showing about 9.5% CAGR. in the private
Expectations for the sector and the segment of the key markets, while the total market is
company's role in these expectations growing by 7.4% CAGR in the private segment of key
markets (UAE, KSA, Egypt, Algeria, Tunisia, Jordan, Kuwait
and Lebanon). It is expected that the generics market will
maintain higher growth for reasons like public budgetary
pressures, the support for the local manufacturers and patent
expiry. {Source IQVIA Data)
UAE witnessed a 2.2% real GDP growth in 2021. Continued
government stimulus, a gradual easing of the pandemic
Expectations regarding the economy
impact, Expo 2020, etc., are helping the economy to revert to
and its impact on the company and the its pre-COVID-19 crisis level, with full recovery expected by
sector 2022. The economy is expected to grow by 4.2% in 2022.
Source: Oxford economics, Reuters, IMF, Bloomberg,
Moody's, ENBD, Central Bank UAE
The future plans for growth of the Company are as follows:
1. Focus on strategic areas of business as the company
has divested from non-core subsidiaries.
2. Continue retail pharmacies expansion in UAE and KSA
3. Strengthen sales organization in core markets and
increase market share with existing portfolio.
Future plans for growth and changes in
4. New alliances and partnerships to strengthen the
operations in future periods
product portfolio of the company.
5. Launch new products in core therapeutic areas and
new therapeutic areas.
6. Invest in capital expenditure to increase production
capacity and new manufacturing technologies and
improve operations efficiency.
Page 3 of 4
Julphar jLoh T +971 7 246 1461
POBox 997 Ras AL Khaimah dcudJI jjdIj 997 ojjj Qgaiio F +971 7 246 2462 cLuujIgiJI oLd i n 1 J 3 . 1 5 II
United Arab Emirates ozmcJI cwpJI oljLolJI E info@julphar.net Gulf Pharmaceutical IndustriesJulphar
julphar.net
The Group continues to invest in capital expenditure for
achieving targeted growth and sustained performance by:
The size and impact of current and
1. Expanding the product portfolio with investing in new
projected capital expenditures on the product dossiers
company 2. Continuing upgrading the existing production facilities
3. Redesigning current processes to address new
requirements from government authorities
The developments of the
The implementation of the following projects have been
implementation of projects, plans and
discussed in the Board of Directors' meetings:
transactions and deals that were 1. Growth strategy 2030
discussed by the company's board of 2. New products launch to add in the product portfolio
3. License agreement for co-development of products
directors in the report for the previous
4. Divestment of non-core areas of business
fiscal year
The name of the chairman of the
Sheikh Saqr Humaid AlQasimi
company or the authorized signatory
Signature and Date 09 November
Company's Seal
Page 4 of 4
Julphar jlnb T +971 7 246 1461
POBox 997 Ras AL Khaimah dnpJI jjoIj 997 zuy ^gaia F +971 7 246 2462 cLjLjIgaJI ol_d i n 1 J ^jlJLAJI
United Arab Emirates oznioJI cwpJI oljLolJI E info@juLphar.net Gulf Pharmaceutical Industries | positive |
00
ADNOC Classification: Public
b;
AADDNNOOCC
DDIISSTTRRIIBBUUTTIIOONN
First Quarter 2023
Results
Management Discussion & Analysis Report
;
1 2 May 2023
Key highlights: Growth in underlying profitability driven by
higher fuel volume and opex optimization
1 | P ageADNOC Classification: Public
Key highlights: Strong operating performance and growth in
underlying profitability in Q1 2023
Fuel volumes – Q1 2023
3,143 +27.8% Y-o-Y
Retail fuel volumes: +29.7%, mainly attributable to acquisition of TotalEnergies Marketing Egypt
million liters
Commercial fuel volumes: +23.8%, mainly attributable to acquisition of TotalEnergies Marketing Egypt
2,654 +7.9% Y-o-Y
Retail fuel volumes: +5.5% supported by network expansion and growth in region’s ongoing economic
million liters
activities
sold in UAE
and KSA Commercial fuel volumes: +12.9% on a strong growth in the corporate business, new contracts signed
in 2022 and Q1 2023 as well as higher spot trading
Revenue – Q1 2023
7,998 +18.7% Y-o-Y
driven by growth in total fuel volumes and selling prices (as a result of higher crude oil prices) and higher
AED million non-fuel retail segment contribution
Gross profit – Q1 2023
1,264 -12.8% Y-o-Y
AED million
in Q1 22, ADNOC Distribution benefited from inventory gains in a rising oil price environment (AED 149
million), while in Q1 23 it recorded inventory losses (AED 14 million) due to falling international oil prices
804 Retail fuel: -8.7% Y-o-Y
AED million
inventory gains of AED 128 million in Q1 2022 vs. absence of inventory gains in Q1 2023 partially offset by
growth in retail fuel volumes
172 Non-fuel retail: +8.7% Y-o-Y
AED million
supported by strong growth in non-fuel transactions, higher conversion rate, improved customer offerings
following revitalization of stores, marketing and promotion campaigns, and higher Food and Beverage
(F&B) sales
288 Commercial: -29.8% Y-o-Y
AED million
growth in corporate fuel volumes offset by a margin reduction in a situation of declining prices as well as
inventory gains of AED 21 million in Q1 2022 vs. AED 14 million inventory losses in Q1 2023
EBITDA – Q1 2023
776 -11.9% Y-o-Y and +18.6% Q-o-Q
AED million
in Q1 22, ADNOC Distribution benefited from inventory gains in a rising oil price environment, while in Q1
23 it recorded inventory losses due to falling international oil prices
Underlying EBITDA (EBITDA excluding inventory movements) – Q1 2023
789 +7.8% Y-o-Y and +13.2% Q-o-Q
driven by volume growth, higher contribution from non-fuel retail business and company-wide efficiency
AED million
initiatives
Net profit attributable to equity holders – Q1 2023
537 -19.9% Y-o-Y and +28.1% Q-o-Q
AED million
due to lower EBITDA
Net profit excluding inventory movements – Q1 2023
551 +5.5% Y-o-Y and +19.4% Q-o-Q
AED million
driven by higher fuel volumes and company-wide efficiency initiatives
2 | P ageADNOC Classification: Public
Strong cash flow generation and balance sheet – Q1 2023
1,048 Free cash flow
AED million
Supports new dividend policy to pay min. AED 2.57 billion dividends for 2023
ADNOC Distribution maintained a strong financial position at the end of March 2023 with liquidity of AED 4.7
billion, in the form of AED 1.9 billion in cash and cash equivalents and AED 2.8 billion in unutilized credit
facility
1.06x Net debt to EBITDA ratio
Balance sheet remained strong with a Net debt to EBITDA ratio of 1.06x as of 31 March 2023
(0.78x as of 31 December 2022)
Operational highlights – Q1 2023
7 New stations in UAE and KSA 814 Total stations network
507 in UAE
67 in KSA
240 in Egypt*
345 Total convenience stores
network in UAE
42.5 Fuel transactions in UAE 10.6 Non-fuel transactions in UAE
flat Y-o-Y +10.7% Y-o-Y
million million
24% Conversion rate of
convenience stores in UAE
22% in Q1 2022
* Acquisition of 50% of TotalEnergies Marketing Egypt completed in Feb. 2023
3 | P ageADNOC Classification: Public
Strategy update: Sustained growth momentum in Q1 2023
following record 2022 results
ADNOC Distribution recorded positive underlying financial performance in Q1 2023 with net profit excluding
inventory movements increasing by 5.5% year-on-year to AED 551 million, driven by a 7.9% growth in the UAE
and KSA fuel volumes, a 9% increase in non-fuel retail gross profit, and like-for-like OPEX reduction of AED 33
million demonstrating significant progress towards the OPEX savings target. Continued execution momentum
on Smart Growth Strategy signals the Company’s commitment to delivering on its growth initiatives and
generating long-term shareholder value.
Fuel business (retail and commercial)
ADNOC Distribution’s UAE and KSA fuel volumes demonstrated strong growth in Q1 2023 of 7.9% year-on-
year, as economic activity continued to demonstrate robust momentum supporting retail and corporate fuel
consumption. The fuel volumes expanded year-on-year despite the start of Ramadan during the reporting period
and no positive impact of EXPO-2020 that we saw in Q1 2022. ADNOC Distribution added new stations in Dubai
and Saudi Arabia, resulting in incremental retail fuel volumes in Q1 2023 which increased by 5.5% compared to
Q1 2022. Finally, following completion of the acquisition of a 50% stake in TotalEnergies Marketing Egypt and
the subsequent financial consolidation, we recorded a 27.8% year-on-year increase in total fuel volumes and
added 240 retail stations to our network.
Network expansion: ADNOC Distribution further expanded its retail fuel activities by adding new stations in the
UAE and KSA and is on track to open 25-35 new stations in 2023.
o Domestically: ADNOC Distribution added six new stations in the UAE in Q1 2023 (one marine station in
Abu Dhabi was closed during the period) to reach 507 stations in our home market, which compares to 464
stations at the end of Q1 2022.
In Dubai, the Company opened one new station in Q1 2023. As a result, ADNOC Distribution’s service
station network in the emirate expanded to 40 stations at the end of the period, up from 31 stations at the
end of Q1 2022.
o Internationally: ADNOC Distribution continued to execute on its plans in the Kingdom of Saudi Arabia, with
one station opened during Q1 2023, taking its total network in the country to 67 stations at the end of the
period, up from 55 stations at the end of Q1 2022. The Company has revitalized and rebranded 76% of its
KSA stations as of the end of Q1 2023.
Beyond the GCC region, in Q1 2023 ADNOC Distribution successfully completed the acquisition of a 50%
stake in TotalEnergies Marketing Egypt LLC, which is among the top four fuel retail operators in Egypt.
The partnership with TotalEnergies, a leading global multi-energy company with a strong brand and
successful track record in Egypt, includes a diversified portfolio comprising 240 fuel retail stations, 100+
convenience stores, 250+ lube changing stations, and car wash sites, as well as wholesale fuel, aviation
fuel and lubricant operations.
The acquisition of TotalEnergies Marketing Egypt supports ADNOC Distribution’s objective to become a
regional leader in mobility retail and fuel distribution and provides sizeable operations in one of the largest
countries in MENA.
4 | P ageADNOC Classification: Public
Commercial business:
In Q1 2023, commercial segment fuel volumes in the UAE increased by 12.9% compared to Q1 2022 driven by
a material increase of 21.0% in corporate business volumes. This was a result of higher spot trading activity and
execution of new corporate contracts signed in 2022 and Q1 2023, as our business development team has been
proactively focusing on gaining market share in Dubai and Northern Emirates. The total number of export network
countries of ADNOC Distribution’s VOYAGER lubricants portfolio rose to 28 markets at the end of Q1 2023
compared to 20 markets at the end of the same period last year.
Non-fuel business - UAE
During Q1 2023, non-fuel business continued to gain momentum with a c.11% year-on-year increase in recorded
transactions, supported by a series of marketing campaigns and customer-centric initiatives in line with the
Company’s non-fuel retail strategy.
At the end of Q1 2023, the network of convenience stores stayed nearly unchanged compared to the end of Q1
2022 at 345. Our focus remains on revitalization of the convenience stores. Since the launch of the program, the
Company modernized a total of 193 ADNOC Oasis stores over 2020-2022, offering fresh food, barista-brewed
coffee and a wider menu selection, and providing support to key convenience stores operating metrics, including
number of transactions, conversion rate, gross margin, and gross basket.
ADNOC Distribution continued to enhance customer offerings through various initiatives, such as offering a
modern shopping environment, improvement in category management, a better assortment of products,
including introduction of fresh food and premium coffee products, and digital channels to order and transact. The
customer journey improvements are consistent with the Company’s ongoing non-fuel retail strategy to offer
modern and digitally enabled shopping experience.
ADNOC Distribution continued to expand its vehicle inspection services in the UAE with the addition of one new
center in Abu Dhabi. The number of vehicles inspected (fresh tests) in the Company’s vehicle inspection centers
increased by 33.3% in Q1 2023 year-on-year, partially driven by an increase of the number of vehicle inspection
centers from 30 as of the end of Q1 2022 to 33 as of the end of Q1 2023.
ADNOC Rewards loyalty program and customer focus
ADNOC Rewards loyalty program continued to add members throughout Q1 2023, with more than 1.6 million
members now enrolled and over 50 partner offers providing discounts and deals through the ADNOC Distribution
app. The program received a boost in February 2023 with an improvement in generosity of 3x and further
enhancements planned for 2023.
Customer experience has been integral to the Company, with continuing offering of promotions in-store and
through the ADNOC Rewards. This includes the Let’s Go Shop and Win Raffle, as well as comprehensive vehicle
inspection, car wash, and lube change offers.
In February, the Company became the region’s first fuel distributor to introduce the innovative ADNOC ‘Fill &
Go’ technology at its service stations. The AI-backed solution utilizes the latest innovations in computer vision
technologies, comprising machine learning models allowing computers to recognize vehicles and responds by
offering a hyper-personalized fueling experience, reaffirming ADNOC Distribution’s leadership position in the
UAE’s fuel and convenience retail sector.
5 | P ageADNOC Classification: Public
OPEX
During Q1 2023, ADNOC Distribution accelerated efficiency improvement measures across all our operations
and businesses including optimizing logistics costs, renegotiations of supply contracts with vendors,
centralization of key functions, etc. As a result, the Company’s OPEX decreased by 8.7% year-on-year and by
12.3% quarter-on-quarter.
The cost reduction took place despite the continued expansion of our operations and associated costs. Number
of stations in the UAE and KSA increased by nearly 11% at the end of Q1 2023 compared to the same period
of last year. In addition, ADNOC Distribution consolidated operations of TotalEnergies Marketing Egypt from 1
February 2023. The Company continues to implement management initiatives to increase operational efficiency
and achieve prudent cost controls.
CAPEX
In line with the plans to continue with its expansion strategy, ADNOC Distribution invested (including
accruals/provisions) AED 157 million in Q1 2023, of which nearly 80% spent on growth. Our target remains to
spend AED 0.9-1.1 billion ($ 250-300 million) on CAPEX in 2023.
Sustainability & futureproofing of business
ADNOC Distribution’s commitment to futureproof the business supports our drive to deliver long-term
shareholder value. During Abu Dhabi Sustainability Week in January 2023, the Company announced a series
of tangible steps to address energy transition as well as to decarbonize its operations through several initiatives:
I/ E GO
2
ADNOC Distribution continues to expand its network of EV charging stations, and has agreed with TAQA, one
of the largest listed integrated utility companies in the EMEA region, to work together to establish a new mobility
joint-venture, E GO. Once established, E GO will build and operate EV charging infrastructure in public and
2 2
private sites across Abu Dhabi and the wider UAE.
The two companies will utilize their wealth of experience, vast network, and innovation capabilities to meet the
evolving needs of EV customers nationwide and unlock new business revenue streams. E GO is to play a critical
2
role in delivering EV charging infrastructure across Abu Dhabi where an estimated 70,000 EV charging points
and up to nearly $200 million CAPEX is required to meet growing demand by 2030.
In parallel, ADD continues EV chargers rollout at its service stations with 36 charging points currently installed
across the UAE with a power ranging between 50 and 180 KW. 23 of our service stations are equipped with EV
charging services.
Through the development of modern mobility solutions, ADNOC Distribution intends to become a destination of
choice for charging and convenience for the UAE customers.
II/ Decarbonization roadmap
ADNOC Distribution plans to expand its sustainability-driven efforts to futureproof its business. In January 2023,
the Company unveiled its Decarbonization roadmap, committing to a reduction of carbon intensity of its business
by 25% by 2030. The Decarbonization roadmap covers Scope 1 emissions, which come directly from the
Company’s operations, and Scope 2 carbon emissions, which come from the energy ADNOC Distribution uses
to run its operations.
6 | P ageADNOC Classification: Public
The Company aims to cut emissions through a set of identified initiatives that will be implemented in 2023 and
beyond, such as installing solar panels at service stations, use of biofuels to power its fleet of vehicles and other
energy optimization initiatives. ADNOC Distribution also aims to utilize ‘green concrete’, that is eco-friendly and
has a smaller carbon footprint than traditional concrete, in the construction of new service stations.
In May, ADNOC Distribution announced partnering with Emerge, a joint venture between Masdar and EDF, to
install solar panels across its service station network in Dubai, as part of the Company’s phased approach to
UAE-wide solar rollout to provide the power needed for daily operations.
III/ Sustainability Linked Loan
ADNOC Distribution became the first UAE fuel and convenience retailer to tap into sustainable financing, by
converting in January 2023 an existing AED 5.5 billion ($ 1.5 billion) term loan into a Sustainability Linked Loan.
The Company committed to a penalty/incentive which ties the loan to sustainability-linked indicators, including
GHG emissions intensity and share of renewable energy contribution. By arranging the Sustainability Linked
Loan, ADNOC Distribution has aligned its funding strategy with the sustainability roadmap.
Eng. Bader Al Lamki – Chief Executive Officer:
"We focused our efforts during Q1 2023 on streamlining operations across our local and international network
while ensuring our cross-border teams were well-equipped to sustain the delivery momentum of our growth
trajectory through 2023 and beyond. At the same time, we maintained a healthy cash flow generation and strong
financial position to deliver incremental shareholder value through efficient capital allocation.
We continue to explore further growth of our business domestically and internationally through value-accretive
M&A opportunities, while considering profitability and the creation of new revenue streams to be among the main
driving factors in our decision-making process.”
7 | P ageADNOC Classification: Public
Outlook: Positive volume growth expected to sustain in 2023
with management focus on Growth and Profitability
ADNOC Distribution remains committed to delivering sustainable, profitable growth and attractive shareholder
returns. The Company expects positive volume growth to sustain in 2023, while also focusing on network
expansion and delivering higher non-fuel retail contribution. By executing management initiatives to increase
operational efficiency across all business units, implementing prudent cost controls and optimizing costs, in Q1
2023 the Company achieved OPEX savings of AED 33 million and is on track to achieve its guidance for like-
for-like OPEX savings in excess of AED 92 million in 2023.
ADNOC Distribution will continue to enhance customer experience, further optimize its operations to become a
leading cost-efficient fuel retailer and generate sustainable value for shareholders. The Company is confident
and steadfast in the delivery of its strategic commitments. As opportunities arise, ADNOC Distribution will pursue
expansion plans in a disciplined manner, supported by a robust balance sheet and ample liquidity with
confidence in the cash flow generation capability.
In its ongoing quest to futureproof its business, ADNOC Distribution continues to explore potential growth
opportunities and new revenue streams created through energy transition, including opportunities in mobility and
energy transition such as electric vehicle charging services and other sustainability-driven initiatives.
Fuel business
New stations: after achieving the 2022 target of opening 60-80 stations by adding 68 new stations in the UAE
and KSA, the Company expects delivery momentum to continue and targets 25-35 new stations during 2023. In
Q1 2023, ADNOC Distribution opened 7 new stations and operated at the end of the reporting period 574 service
stations in the UAE and KSA.
Egypt: ADNOC Distribution’s recent acquisition of a 50% stake in TotalEnergies Marketing Egypt reaffirms the
Company’s commitment to expanding business in attractive international growth markets. Egypt’s fuel retail,
lubricants and aviation markets are highly attractive with a potential for future growth. Due to its young and
expanding population, alongside a series of progressive economic reforms, Egypt has recorded GDP growth
with a positive outlook.
Through this transaction, ADNOC Distribution and TotalEnergies are expected to explore future growth
opportunities of TotalEnergies Marketing Egypt by unlocking value potential in fuel distribution, lubricants and
aviation businesses supported by economic growth. The Company plans to open the first ADNOC flagship
service station in Cairo during Q2 2023.
Other international: Beyond our successful acquisition in Egypt, the Company is evaluating inorganic growth
opportunities in international markets with a focus on efficient capital allocation towards growth.
Renewal of the Refined Products Supply Agreement: at the beginning of 2023, ADNOC Distribution
successfully renewed its supply agreement with ADNOC for a new five-year term, reaffirming the Company’s
strong value proposition driven by predictable margins and highly cash generative core business. The renewal
also demonstrated strong and ongoing support from the majority shareholder, ADNOC.
8 | P ageADNOC Classification: Public
Non-fuel business
ADNOC Distribution invests in offering customers a modern and engaging retail experience. In line with the
ambitious non-fuel strategy, the focus remains on offering a modern environment and a better assortment of
products to customers, including fresh food and premium coffee, bundle offers and digital channels to order and
transact.
The convenience store revitalization program has ensured that the Company is well-positioned to capitalize on
benefits of its customer-centric initiatives and generates consistent growth in its convenience stores business.
Efficient capital allocation
ADNOC Distribution has demonstrated a proven track record of value creation since IPO, by pursuing new
opportunities in domestic and international markets and allocating cash towards growth. The Company expects
to invest AED 0.9-1.1 billion in 2023 to deliver on its growth plans after investing AED 1.25 billion in 2022, of
which nearly 65% was spent on growth. The guidance does not include any potential M&A opportunities. In Q1
2023, the CAPEX amounted to AED 157 million.
Through efficient capital allocation, ADNOC Distribution has consistently achieved healthy rates of return,
including Return on Capital Employed (ROCE) of 28.3% in Q1 2023 (26.6% in Q1 2022) and Return on Equity
(ROE) of 97.0% in Q1 2023 (87.5% in Q1 2022).
In Q1 2023, ADNOC Distribution generated robust free cash flow of AED 1,048 million. At the end of March
2023, the Company maintained a strong financial position with liquidity of AED 4.7 billion, in the form of AED 1.9
billion in cash and cash equivalents and AED 2.8 billion in unutilized credit facility. The balance sheet remained
strong with a net debt to EBITDA ratio of 1.06x as of 31 March 2023 (0.78x as of 31 December 2022). Together
with the consistent cash generation this provides support to potential future international expansion through
value-accretive M&A transactions.
Operating and investment efficiency
ADNOC Distribution aims to become one of the leading cost-efficient fuel retailers and remains on track to take
structural costs out, make its operations leaner and more efficient. The Company remains committed to
achieving further operational excellence and expects to realize like-for-like OPEX savings in excess of AED 92
million ($ 25 million) in 2023.
The key drivers for further OPEX savings include staff optimization, with the more efficient deployment of staffing
levels for stations and convenience stores, energy efficiency through smart technology, outsourcing of logistics,
centralization of key functions, etc.
Dividend policy
The Company’s continued growth and robust cash generation have enabled a progressive dividend policy for
the shareholders. ADNOC Distribution is committed to delivering sustainable, profitable growth and attractive
shareholder returns.
In March 2023, ADNOC Distribution shareholders approved a new attractive dividend policy with a minimum
dividend of AED 2.57 billion (20.57 fils per share) for 2023 (compared to a minimum 75% of distributable profits
as per the previous policy), offering higher payback visibility for shareholders for another year. For years
thereafter, the dividend is set equal to at least 75% of distributable profits. The dividend policy recognizes the
Company’s strong financial position, confidence in its growth prospects and cash-flow generation ability going
forward.
In accordance with the dividend policy, the Company expects to continue to pay half of the annual dividend in
October of the relevant year and the second half to be paid in April of the following year. The payment of dividend
is subject to the discretion of ADNOC Distribution’s Board of Directors and to the shareholders’ approval.
9 | P ageADNOC Classification: Public
Financial summary
AED million Q1-23 Q4-22 QoQ % Q1-22 YoY %
Revenue 7,998 8,187 -2.3% 6,736 18.7%
Gross profit 1,264 1,225 3.2% 1,449 -12.8%
Gross margin, % 15.8% 15.0% 21.5%
EBITDA 776 654 18.6% 881 -11.9%
EBITDA margin, % 9.7% 8.0% 13.1%
Underlying EBITDA (1) (2) 789 697 13.2% 732 7.8%
Operating profit 626 499 25.5% 718 -12.9%
Net profit attributable to equity holders 537 419 28.1% 671 -19.9%
Net margin, % 6.7% 5.1% 10.0%
Earnings per share (AED/share) 0.04 0.03 28.1% 0.05 -19.9%
Net profit excluding inventory movements 551 461 19.4% 522 5.5%
Net cash generated from operating activities 1,257 1,522 -17.4% 2,066 -39.2%
Capital expenditures 155 490 -68.4% 196 -20.6%
Free cash flow (3) 1,048 1,142 -8.2% 1,866 -43.9%
Total equity 2,793 3,445 -18.9% 2,620 6.6%
Net debt (4) 3,605 2,735 31.8% 1,446 149.3%
Capital employed 10,176 10,441 -2.5% 9,305 9.4%
Return on capital employed (ROCE), % 28.3% 28.5% 26.6%
Return on equity (ROE), % 97.0% 79.8% 87.5%
Net debt to EBITDA ratio (4) 1.06 0.78 0.46
Leverage ratio, % 56.3% 44.3% 35.6%
(1) Underlying EBITDA is defined as EBITDA excluding inventory movements
(2) Underlying EBITDA for Q4 2022 and Q1 2022 has been restated as per definition in (1)
(3) Free cash flow is defined as net cash generated from operating activities less payments for purchase of property, plant & equipment,
and advances to contractors
(4) Cash and bank balances used for net debt calculation include term deposits with banks
Notes: See the Glossary for the calculation of certain metrics referred to above
10 | P ageADNOC Classification: Public
Operating and financial review
Fuel volumes
Q1 2023 total fuel volumes sold reached 3,143 increased by 12.9% year-on-year driven by a
million liters, increasing by 27.8% year-on-year significant growth of 21.0% in corporate volumes,
mainly attributable to acquisition of TotalEnergies partially offset by a reduction of 51.3% year-on-year
Marketing Egypt. in aviation volumes due to lower uptake from
strategic aviation customers.
In GCC markets (UAE and KSA), Q1 2023 total fuel
volumes amounted to 2,654 million liters, up by Compared to Q4 2022, Q1 2023 GCC total fuel
7.9% year-on-year despite start of Ramadan during volumes were almost flat, including unchanged
the reporting period and no effect of EXPO-2020 quarter-on-quarter retail fuel volumes. However,
which had a positive impact on our volumes in Q1 daily Q1 2023 total fuel volumes increased by 1.8%
2022. quarter-on-quarter, including by 2.2% in retail
segment and by 1.1% in commercial segment, as
In Q1 2023, GCC retail fuel volumes increased by Q1 2023 had two days less than Q4 2022.
5.5% year-on-year, while commercial fuel volumes
Fuel volumes by segment (million liters) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Retail (B2C) 2,148 1,747 23.0% 1,656 29.7%
Of which GCC 1,746 1,747 0.0% 1,656 5.5%
Of which Egypt 402
Commercial (B2B) 995 918 8.4% 804 23.8%
Of which GCC 907 918 -1.1% 804 12.9%
Of which Egypt 88
Of which Corporate 926 868 6.6% 713 29.7%
Of which GCC 863 868 -0.5% 713 21.0%
Of which Egypt 62
Of which Aviation 70 50 39.7% 90 -22.9%
Of which GCC 44 50 -11.7% 90 -51.3%
Of which Egypt 26
Total 3,143 2,664 18.0% 2,459 27.8%
Fuel volumes by product (million liters) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Gasoline (1) 1,773 1,612 10.0% 1,525 16.3%
Diesel 1,081 832 29.8% 656 64.7%
Aviation products 70 50 39.7% 90 -22.9%
Others (2) 220 170 29.3% 188 17.0%
Total 3,143 2,664 18.0% 2,459 27.8%
Of which GCC 2,654 2,664 -0.4% 2,459 7.9%
Of which Egypt 490
(1) Includes grade 91, 95 and 98 unleaded gasoline
(2) Includes CNG, LPG, kerosene, lubricants, and base oil
11 | P ageADNOC Classification: Public
Results
In Q1 2023, revenue increased by 18.7% year-on- Reported EBITDA declined by 11.9% year-on-year
year to AED 7,998 million. The increase was driven to AED 776 million mainly due inventory gains in Q1
by higher selling prices as a result of higher crude 2022 and inventory losses in Q1 2023. This was
oil prices, growth in fuel volumes, and higher partially offset by the higher fuel volumes and a
contribution of non-fuel retail business. reduction in cash operating expenses.
Q1 2023 gross profit decreased by 12.8% year-on- Q1 2023 underlying EBITDA (EBITDA excluding
year to AED 1,264 million. In Q1 2022, inventory inventory movements) increased by 7.8% year-on-
gains amounted to AED 149 million (AED128 million year to AED 789 million driven by higher volumes
in fuel retail and AED 21 million in Corporate and management initiatives to reduce costs and
business), while in the reporting period, the improve efficiency of operations.
Company did not record any inventory gains in the
fuel retail business and incurred AED 14 million Q1 2023 net profit attributable to shareholders
inventory losses in the Commercial business. In Q1 decreased by 19.9% year-on-year to AED 537
2023, gross profit received support from higher fuel million due to lower EBITDA. Net profit attributable
volumes and growth in non-fuel retail business. to shareholders excluding inventory movements
increased by 5.5% year-on-year to AED 551 million.
Revenue by segment (AED million) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Retail (B2C) 5,260 5,297 -0.7% 4,600 14.3%
Of which fuel retail 4,937 4,985 -1.0% 4,316 14.4%
Of which non-fuel retail (1) 323 312 3.4% 284 13.5%
Commercial (B2B) 2,739 2,890 -5.2% 2,136 28.2%
Of which corporate 2,430 2,630 -7.6% 1,820 33.5%
Of which aviation 308 259 19.0% 316 -2.4%
Total 7,998 8,187 -2.3% 6,736 18.7%
Gross profit by segment (AED million) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Retail (B2C) 976 928 5.2% 1,039 -6.1%
Of which fuel retail 804 766 4.9% 881 -8.7%
Of which non-fuel retail (1) 172 162 6.7% 159 8.7%
Commercial (B2B) 288 298 -3.4% 410 -29.8%
Of which corporate 232 227 1.9% 292 -20.6%
Of which aviation 56 70 -20.4% 118 -52.6%
Total 1,264 1,225 3.2% 1,449 -12.8%
EBITDA by segment (AED million) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Retail (B2C) 545 399 36.6% 598 -9.0%
Commercial (B2B) 222 255 -12.8% 282 -21.3%
Of which corporate 168 191 -12.0% 232 -27.4%
Of which aviation 54 64 -15.3% 50 6.8%
Unallocated(2) 9 1 NM 1 NM
Total 776 654 18.6% 881 -11.9%
NM: Not meaningful
(1) Non-fuel retail includes convenience stores, car wash, lube change, property management and vehicle inspection
(2) Unallocated includes other operating income/expenses not allocated to specific segment
12 | P ageADNOC Classification: Public
Distribution and administrative expenses
In Q1 2023, distribution and administrative
expenses were AED 669 million, a reduction of Excluding depreciation, the OPEX of AED 519
8.7% compared to Q1 2022, despite an increase of million decreased in Q1 2023 by 9.0% year-on-year.
nearly 11% in the Company’s network in the UAE
and KSA and associated costs as well as acquisition
of TotalEnergies Marketing Egypt.
AED million Q1-23 Q4-22 QoQ % Q1-22 YoY %
Staff costs 361 380 -5.2% 393 -8.3%
Depreciation 150 156 -3.5% 163 -7.6%
Repairs, maintenance, and consumables 44 62 -29.2% 46 -5.0%
Distribution and marketing expenses 4 9 -51.9% 29 -85.0%
Utilities 34 57 -40.5% 40 -16.4%
Insurance 5 5 1.7% 4 22.8%
Others (1) 71 94 -24.5% 57 24.8%
Total 669 763 -12.3% 733 -8.7%
(1) Other costs include lease cost, bank charges, subscriptions, legal fees, consultancies, etc.
Capital expenditures
The Company’s capital expenditures (CAPEX) In Q1 2023, total CAPEX decreased by 19.7% to
primarily consist of (i) investments related to the AED 157 million mainly due to normalization of the
development and construction of new service investment activity following the post-COVID
stations and fuel terminal projects and capitalized acceleration seen during 2022. Nearly 80% of the
maintenance costs related to properties, (ii) the CAPEX comprised development and construction of
purchase of machinery and equipment, and (iii) new service stations.
other capital expenditures related to properties,
including structural upgrades, technology The table below presents the breakdown of capital
infrastructure upgrades and other improvements. expenditures for the reviewed period.
AED million Q1-23 Q4-22 QoQ % Q1-22 YoY %
Service stations projects 122 277 -56.0% 128 -4.4%
Industrial and other projects 8 57 -86.1% 37 -78.4%
Machinery and equipment 13 76 -82.4% 10 28.8%
Distribution fleet 0 4 NM 3 NM
Technology infrastructure 12 60 -80.8% 16 -26.9%
Office furniture and equipment 2 17 -86.2% 2 8.6%
Total 157 490 -68.0% 196 -19.7%
NM: Not meaningful
13 | P ageADNOC Classification: Public
Business segments operating review
Retail segment – B2C (fuel and non-fuel)
Volumes
In Q1 2023, retail fuel volumes increased by 29.7% remained flat compared to Q4 2022 but on a daily
year-on-year, mainly attributable to acquisition of basis increased by 2.2% quarter-on-quarter.
TotalEnergies Marketing Egypt.
The Company continued to expand in Saudi Arabia
In GCC markets (UAE and KSA), the volumes and Dubai by adding new stations, resulting in
increased by 5.5% year-on-year driven by the incremental fuel volumes in Q1 2023 compared to
region’s ongoing economic growth. The volumes the same period of 2022.
Retail segment volumes (million liters) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Gasoline 1,701 1,536 10.8% 1,461 16.4%
Diesel 389 155 150.6% 144 170.0%
Other (1) 58 55 5.2% 51 15.3%
Total 2,148 1,747 23.0% 1,656 29.7%
Of which GCC 1,746 1,747 0.0% 1,656 5.5%
Of which Egypt 402
(1) Includes CNG, LPG, kerosene, and lubricants
Results
In Q1 2023, retail segment revenue increased by 2022 and absence of inventory gains in Q1 2023,
14.3% compared to Q1 2022, driven by higher partially offset by the higher fuel volumes in the
volumes and prices in the fuel retail segment, as reporting period. Non-fuel retail gross profit
well as growth in non-fuel retail revenue. increased by 8.7% in Q1 2023 compared to Q1
2022.
Q1 2023 retail segment gross profit decreased by
6.1% compared to Q1 2022, due to inventory gains Q1 2023 retail segment EBITDA declined by 9.0%
of AED 128 million in Q1 2022 and absence of compared to Q1 2022, mainly due to inventory gains
inventory gains in the reporting period. Gross profit in Q1 2022 and absence of inventory gains in Q1
was supported by higher fuel volumes and higher 2023, partially offset by the higher fuel volumes and
non-fuel business contribution. lower operating expenses in the reporting period.
Retail segment underlying EBITDA (EBITDA
Fuel retail segment gross profit decreased by 8.7% excluding inventory movements) increased by
year-on-year principally due to inventory gains in Q1 15.8% year-on-year.
Retail segment (AED million) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Revenue 5,260 5,297 -0.7% 4,600 14.3%
Of which fuel retail 4,937 4,985 -1.0% 4,316 14.4%
Of which non-fuel retail (1) 323 312 3.4% 284 13.5%
Gross profit 976 928 5.2% 1,039 -6.1%
Of which fuel retail 804 766 4.9% 881 -8.7%
Of which non-fuel retail (1) 172 162 6.7% 159 8.7%
EBITDA 545 399 36.6% 598 -9.0%
Operating profit 408 255 59.9% 450 -9.3%
Capital expenditures 99 347 -71.6% 129 -23.8%
(1) Non-fuel retail includes convenience stores, car wash, lube change, property management and vehicle inspection
14 | P ageADNOC Classification: Public
Other operating metrics
Q1 2023 fuel transactions in the UAE were nearly Q1 2022. The number of fuel transactions was
unchanged year-on-year despite the start of supported by the network expansion, improving
Ramadan and no effect of EXPO-2020 which had a customer sentiment, as well as the ongoing growth
positive impact on the number of fuel transactions in in economic activity in the UAE.
Fuel operating metrics Q1-23 Q4-22 QoQ % Q1-22 YoY %
Number of service stations – UAE(1)(2) 507 502 1.0% 464 9.3%
Number of service stations – Saudi Arabia(1) 67 66 1.5% 55 21.8%
Number of service stations – Egypt(1) 240
Total number of service stations(1) 814 568 43.3% 519 56.8%
Throughput per station – GCC (million liters) 3.0 3.1 -1.1% 3.2 -4.6%
Number of fuel transactions – UAE (million) 42.5 44.3 -4.0% 42.7 -0.4%
(1) At end of period
(2) One marine station was closed Q1 2023
In Q1 2023, non-fuel transactions in the UAE Average gross basket size increased by 2.5% year-
increased by 10.7% year-on-year driven by on-year in Q1 2023 compared to Q1 2022.
improving consumer sentiment, enhanced customer
offerings following the revitalization of the stores, and In its property management business, the Company
marketing and promotion campaigns under ADNOC continues to transition its tenancy business to a
Rewards loyalty program to attract higher footfall and revenue-sharing model to maximize revenues and
increase customer spending. profitability. In Q1 2023, the number of occupied
properties increased by 2.4% year-on-year driven by
The UAE convenience stores revenue increased by proactive non-fuel growth strategy to bring in new
11.6% to AED 201 million in Q1 2023 compared to tenants.
Q1 2022, mainly driven by higher number of
transactions compared to the same period of last A number of vehicles inspected (fresh tests) in the
year. In Q1 2023, convenience stores gross profit Company’s vehicle inspection centers increased by
increased by 11.7% to AED 66 million, driven by 33.3% in Q1 2023 compared to Q1 2022, driven by
higher number of transactions as a result of a higher number of vehicle inspection centers.
enhanced customer offerings following revitalization
of the stores, marketing, and promotion campaigns
as well as the higher F&B sales.
15 | P ageADNOC Classification: Public
Non-fuel operating metrics – UAE Q1-23 Q4-22 QoQ % Q1-22 YoY %
Total number of non-fuel transactions (million)(1) 10.6 10.8 -2.2% 9.6 10.7%
Number of convenience stores – UAE(2) 345 362 -4.7% 350 -1.4%
Convenience stores revenue (AED million) 201 207 -2.7% 180 11.6%
Convenience stores gross profit (AED million) 66 64 3.2% 59 11.7%
Gross margin, % 32.9% 31.0% 32.9%
Conversion rate (C-store sites only), %(3) 24% 24% 22%
Average basket size (AED)(4) 22.5 22.5 -0.2% 22.4 0.2%
Average gross basket size (AED)(5) 26.9 26.3 2.5% 26.3 2.5%
Number of Property Management tenants(2) 305 315 -3.2% 330 -7.6%
Number of occupied properties for rent(2) 997 1,022 -2.4% 974 2.4%
Number of vehicle inspection centers(2)(6) 33 32 3.1% 30 10.0%
Number of vehicles inspected – fresh tests (thousands) 297 223 33.3% 223 33.3%
Other vehicle inspection transactions (thousands)(7) 54 88 -38.6% 85 -36.2%
(1) Includes convenience stores, car wash and oil change transactions
(2) At end of period
(3) Number of convenience stores transactions divided by number of fuel transactions at sites with convenience stores
(4) Average basket size is calculated as convenience store revenue divided by number of convenience store transactions
(5) Average gross basket size is calculated as convenience store revenue (including revenue from consignment items shown under other
operating income) divided by number of convenience store transactions
(6) Includes one permitting center
(7) Other vehicle inspection transactions include number of vehicles inspected (re-tests) and sale of safety items at vehicles inspection
centers
16 | P ageADNOC Classification: Public
Commercial segment – B2B (corporate and aviation)
Volumes
In Q1 2023, commercial fuel volumes increased by corporate volumes as a result of higher spot trading
23.8% year-on-year, mainly attributable to activity and execution of new corporate contracts
acquisition of TotalEnergies Marketing Egypt. signed in 2022 and Q1 2023. The increase in
Corporate volumes was partially offset by a 51.3%
In GCC markets (UAE and KSA), the volumes year-on-year decline in the aviation fuel volumes
increased by 12.9% compared to Q1 2022, driven sold to strategic customers.
by a significant increase of 21.0% year-on-year in
Commercial segment volumes (million liters) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Gasoline 72 76 -5.1% 64 13.0%
Diesel 691 677 2.1% 512 35.1%
Aviation 70 50 39.7% 90 -22.9%
Other (1) 162 115 41.0% 138 17.6%
Total 995 918 8.4% 804 23.8%
Of which GCC 907 918 -1.1% 804 12.9%
Of which Egypt 88
(1) Includes LPG, lubricants, and base oil
Results
Q1 2023 commercial segment revenue increased strategic customers and a reduction in margins. In
by 28.2% compared to Q1 2022, mainly attributable addition, in its corporate business ADNOC
to acquisition of TotalEnergies Marketing Egypt. Distribution recorded AED 21 million inventory gains
The growth was driven by corporate business which in Q1 2022 and incurred AED 14 million inventory
increased the revenue by 33.5% in Q1 2023 losses in Q1 2023.
compared to Q1 2022, on the back of higher selling
prices as a result of increase in crude oil prices and Q1 2023 commercial segment EBITDA declined by
the material growth in corporate volumes. 21.3% year-on-year, due to the gross profit
reduction. Commercial segment underlying EBITDA
Q1 2023 commercial segment gross profit declined (EBITDA excluding inventory movements)
by 29.8% year-on-year as a result of a significant decreased by 9.5% year-on-year.
decline in the aviation business fuel volumes sold to
Commercial segment (AED million) Q1-23 Q4-22 QoQ % Q1-22 YoY %
Revenue 2,739 2,890 -5.2% 2,136 28.2%
Of which corporate 2,430 2,630 -7.6% 1,820 33.5%
Of which aviation 308 259 19.0% 316 -2.4%
Gross profit 288 298 -3.4% 410 -29.8%
Of which corporate 232 227 1.9% 292 -20.6%
Of which aviation 56 70 -20.4% 118 -52.6%
EBITDA 222 255 -12.8% 282 -21.3%
Of which corporate 168 191 -12.0% 232 -27.4%
Of which aviation 54 64 -15.3% 50 6.8%
Operating profit 208 243 -14.3% 267 -22.2%
Capital expenditures 10 16 -37.6% 3 239.6%
17 | P ageAADDNNOOCC CCllaassssiiffiiccaattiioonn:: PPuubblliicc
Share trading and ownership
ADNOC Distribution shares are traded on the Abu An average of 10.4 million shares traded daily in Q1
Dhabi Securities Exchange (ADX) under the symbol 2023 (0.8x 2022 level). In Q1 2023, the average
ADNOCDIST. The closing share price as of 31 daily traded value of the Company’s shares was
March 2023 was AED 4.18. In the period from 1 approximately AED 45.5 million (0.9x 2022 level).
January 2023 through 31 March 2023, the share
As of 31 March 2023, ADNOC owned 77%, while
price ranged between AED 4.12 and AED 4.64 at
23% of ADNOC Distribution outstanding shares
close. ADNOC Distribution market capitalization
were publicly owned by institutional and retail
was AED 52.3 billion as of 31 March 2023.
investors.
Potential risks
Key risks potentially affecting ADNOC Distribution’s exposure to these risks. For more detailed
financial and operational results include supply information on risks and risk management, please
chain risks, asset integrity and information refer to the Risk Factors section of the international
technology risks. The Company has identified and offering memorandum dated 26 November 2017
implemented several key controls and mitigation relating to ADNOC Distribution IPO, which is
strategies to ensure business continuity, including available on the Company’s website at
engineered controls and managed controls as well www.adnocdistribution.ae
as contractual safeguards to limit its financial
18 | P ageADNOC Classification: Public
Q1 2023 Earnings conference call details
A conference call in English for investors and analysts will be held on Monday, May 15, 2023, at 4 p.m. UAE /
12 p.m. London / 8 a.m. New York. To access the management presentation, followed by a Q&A session, please
connect through one of the following methods:
Webcast
Click here to join the webcast
Please note that participants joining by webcast will be able to ask questions via a chat box within the webcast
player
Note: Click on the link above to attend the presentation from your laptop, tablet, or mobile device. Audio will
stream through your selected device. If you have technical difficulties, please click the “Listen by Phone” button
on the webcast player and dial one of the numbers provided therein.
Audio Call Dial in Details:
UAE (Toll Free): 8000 3570 2606
KSA (Toll Free): 800 844 5726
UK (Toll Free): 0800 279 0424
US (Toll Free): 800-289-0462
Passcode: 100965
For other countries, please connect to the above webcast link, select the “Listen by Phone” option on the webcast
player and click on the audio numbers to access the dial in information
The presentation materials will be available for download in English on Monday, May 12, 2023 at
https://www.adnocdistribution.ae/en/investor-relations/investor-relations/downloads/
Reporting date for the Q2 2023
We expect to announce our second quarter 2023 results on or around August 10, 2023.
Contacts
Investor Relations
Tel.: +971 2 695 9770
Email: ir@adnocdistribution.ae
Athmane Benzerroug
Chief Strategy, Sustainability and Transformation Officer
Email: athmane.benzerroug@adnocdistribution.ae
May 12, 2023
ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION PJSC
19 | P ageADNOC Classification: Public
Glossary
▪ Net debt is calculated as total interest bearing debt less cash and bank balances (including term deposits
with banks).
▪ Free cash flow is calculated as net cash generated from operating activities less payments for purchase
of property, plant & equipment, and advances to contractors.
▪ Capital employed is calculated as the sum of total assets minus non-interest bearing current liabilities.
▪ Return on capital employed is calculated as operating profit for the twelve months ended divided by
capital employed on the last day of the period presented.
▪ Return on equity is calculated as profit distributable to equity holders of the Company for the period of
twelve months ended divided by equity attributable to owners of the Company on the last day of the
period presented.
▪ Net debt to EBITDA ratio is calculated interest bearing net debt as of the end of the period presented,
divided by EBITDA for the twelve months ended on the last day of the period presented.
▪ Leverage ratio is calculated as (a) interest bearing net debt, divided by (b) the sum of interest bearing
net debt plus total equity.
▪ Average basket size is calculated as convenience store revenue divided by number of convenience
store transactions
▪ Average gross basket size is calculated as total convenience store sales revenue (including revenue
from consignment items shown under other operating income) divided by number of convenience store
transactions.
20 | P ageADNOC Classification: Public
Cautionary statement regarding forward-looking statements
This communication includes forward-looking statements which relate to, among other things, our plans,
objectives, goals, strategies, future operational performance, and anticipated developments in markets in which
operate and in which we may operate in the future. These forward-looking statements involve known and
unknown risks and uncertainties, many of which are beyond our control and all of which are based on
management’s current beliefs and expectations about future events. Forward-looking statements are sometimes
identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “will”, “could”, “should”,
“would”, “intends”, “estimates”, “plans”, “targets”, or “anticipates” or the negative thereof, or other comparable
terminology. These forward-looking statements and other statements contained in this communication regarding
matters that are not historical facts involve predictions and are based on the beliefs of our management, as well
as the assumptions made by, and information currently available to, our management. Although we believe that
the expectations reflected in such forward looking statements are reasonable at this time, we cannot assure you
that such expectations will prove to be correct. Given these uncertainties, you are cautioned not to place undue
reliance on such forward looking statements. Important factors that could cause actual results to differ materially
from our expectations include, but are not limited to: our reliance on ADNOC to supply us with substantially all
of the fuel products that we sell; an interruption in the supply of fuels to us by ADNOC; changes in the prices
that we pay ADNOC for our fuels and to the prices that we are allowed to charge our retail customers in the
UAE; failure to successfully implement our operating initiatives and growth plans, including our mixed-mode
service offering, our convenience store optimization initiatives, our cost savings initiatives, and our growth plans;
competition in our markets; decrease in demand for the fuels we sell, including due to general economic
conditions, improvements in fuel efficiency and increased consumer preference for alternative fuels; the dangers
inherent in the storage and transportation of the products we sell; our reliance on information technology to
manage our business; laws and regulations pertaining to environmental protection, operational safety, and
product quality; the extent of our related party transactions with ADNOC and our reliance on ADNOC to operate
our business; the introduction of VAT and other new taxes in the UAE; failure to successfully implement new
policies, practices, systems and controls that we implemented in connection with or following our IPO; any
inadequacy of our insurance to cover losses that we may suffer; general economic, financial and political
conditions in Abu Dhabi and elsewhere in the UAE; instability and unrest in regions in which we operate; the
introduction of new laws and regulations in Abu Dhabi and the UAE; and other risks and uncertainties detailed
in our International Offering Memorandum dated 26 November 2017 relating to our initial public offering and the
listing of our shares on the Abu Dhabi Securities Exchange, and from time to time in our other investor
communications. Except as expressly required by law, we disclaim any intent or obligation to update or revise
these forward-looking statements.
21 | P age | positive |
Aramex reports AED 2.97 billion in H1 2022 revenue
• Increased activity in Industrials, Retail, Pharmaceuticals, and SMEs are contributing
positively to the Freight-Forwarding and Logistics business
• Normalization in e-Commerce activity combined with the current macroeconomic
pressures are leading to volume declines in the Courier business in line with the industry
• Sustained gross profit margins at a Group level driven by strong growth in Freight-
Forwarding and Logistics business and operational efficiencies in Courier business
• Robust balance sheet, conservative leverage, and strong cash position underpin expansion
and upcoming M&A activity, including the recently announced MyUS acquisition
• Continuous investment in digital and tech infrastructure to unlock operational efficiencies
Dubai, UAE – Thursday, 11th August 2022: Aramex (DFM: ARMX) a leading global provider
of comprehensive logistics and transportation solutions, today announced its financial results
for the second quarter (“Q2”) and first half (“H1”) ending 30 June 2022.
Yo Y Yo Y
In Thousands of AED Q2 2022 Q2 2021 H1 2022 H1 2021
Cha nge Change
Revenue 1,516,589 1,570,923 (3%) 2,965,521 2,995,856 (1%)
Gross Profit 378,623 388,665 (3%) 722,723 747,310 (3%)
Gross Profit Margin 25.0% 24.7% - 24.4% 24.9% -
Operating Profit 63,569 99,552 (36%) 138,575 179,005 (23%)
Normalized Operating Profit - - - 143,577 179,005 (20%)
Operating Profit Margin 4.2% 6.3% - 4.7% 6.0% -
Normalized Operating Profit
- - - 4.8% 6.0% -
Margin
EBITDA 155,534 192,711 (19%) 324,202 362,556 (11%)
Normalized EBITDA - - - 329,204 362,556 (9%)
EBITDA Margin 10.3% 12.3% - 10.9% 12.1% -
Normalized EBITDA Margin - - - 11.1% 12.1% -
Net Profit 44,568 65,466 (32%) 91,871 111,479 (18%)
Normalized Net Profit - - - 96,873 111,479 (13%)
Net Profit Margin 2.9% 4.2% - 3.1% 3.7% -
Normalized Net Profit Margin - - - 3.3% 3.7% -
Group Financial Performance Highlights
• H1 2022 Revenue was AED 2.97 billion, a 1% decline from the same period a year ago. The
lower performance of the Courier business was offset by solid progress in Logistics and
Freight Forwarding business. Q2 2022 Revenue declined 3% YoY to AED 1.52 billion due to
lower Courier volumes.
• On a group level, GP margins remained stable over both the Q2 and six-month periods,
driven by accelerated growth in the Logistics and Freight-Forwarding business and
efficiencies in the Courier business.• In H1 2022 Net Profit declined by 18% YoY to AED 91.9 million mainly attributed to softer
revenues, and also partially impacted by the exchange rate impact, namely the Lebanese
Pound and Egyptian Pound. Net Profit in Q2 declined 32% to AED 44.6 million. Excluding
the impact of write-offs from discontinued technologies and other one offs, Normalized
Net Profit for H1 2022 decreased 13% YoY to AED 96.9 million.
• Year to date, the Company has sustained a very healthy liquidity profile with positive free
cash flows, a cash balance of AED 592 million and a debt to EBITDA ratio of 0.5x excluding
IFRS 16. Aramex’s strong balance sheet will support the Company’s growth strategy
including investments in digital and technological infrastructure as well as its active M&A
pipeline.
• During the reporting period, in May 2022, the Company distributed FY 2021 dividends of
AED 0.13 per share, or AED 190.3 million, to its shareholders.
Othman Aljeda, Chief Executive Officer of Aramex, said: “One of the greatest
changes we have seen in our business in the first half of 2022 is the change in our revenue
mix. Our Freight-Forwarding and Logistics business was the star performer, helping offset
the softness we have seen in the Courier business.
The double-digit top-line growth of Freight-Forwarding, and the growth in Logistics is
owed to our strategic investment in expanding our operations and market share, and
boosting our capabilities in that business. The organic growth year to date is
predominately driven by high growth sectors such as industrials, SMEs, Retail and
Pharmaceuticals.
Our courier business is facing industry headwinds. Despite this, we have been able to
protect and maintain our gross profit margin.
The softness in e-commerce activity is a global, industry-wide trend as consumers
returned to brick-and-mortar shopping as COVID restrictions eased. We are also seeing
rising inflation rates globally, which puts downward pressure on discretionary spending.
Going forward, our focus is on quality earnings and better efficiencies, by optimizing
resources, and strengthening our end-to-end product and service offering across
Courier, Freight, Logistics, Warehousing, and Supply Chain.
During the period, we announced the acquisition of MyUS, a global cross-border e-
commerce enabler, which is set to bolster Aramex’s cross-border business and expand our
geographic reach and footprint in the US, a key growth market. The transaction is expected
to be fully completed during the third quarter of this year.”Notable Developments
• DPDgroup, Aramex’s largest single shareholder, increased its equity stake in the
Company to 28% during the reporting period, demonstrating its confidence in Aramex’s
ability to create value over the long term. The strategic collaboration continues to
progress nicely with new trade lanes opened in the first half of the year to increase
connectivity between GCC and Europe.
• Operational efficiency continues through the automatization of warehouses and roll out
of AI solutions across the entire logistics life cycle. The Company also scaled its presence
for a more efficient last mile operation by expanding its pick up drop off locations and
FLEET, Aramex’s crowd-based delivery platform.
• Aramex’s investments in new technologies are progressing well including the optimization
of internal systems and enhancements in operational infrastructure, particularly in high-
volume markets such as Egypt and Qatar.
Business Performance Highlights
Courier Business: Aramex’s Courier business includes International Express and Domestic
Express and offers delivery and last mile solutions serving the B2B and B2C customer base
including Shop & Ship, e-commerce, FMCG, SMEs and others.
Courier Business Financial Highlights
%Y oY %Y oY
In Thousands of AED Q2 2022 Q2 2021 H1 2022 H1 2021
Change Change
Courier Business Revenue 936,163 1,100,781 (15%) 1,847,255 2,102,924 (12%)
International Express Revenue 587,091 733,556 (20%) 1,144,836 1,380,080 (17%)
Domestic Express Revenue 349,072 367,226 (5%) 702,419 722,844 (3%)
Courier Business Operating
40,109 104,627 (62%) 92,555 172,420 (46%)
Profit
Courier Business Shipment Volumes
%Y oY %Y oY
Q2 2022 Q2 2021 H1 2022 H1 2021
Change Change
International Express 5,930,134 7,200,104 (18%) 11,269,903 13,403,931 (16%)
Domestic Express 24,101,160 25,800,486 (7%) 49,109,504 51,189,324 (4%)
Total 30,031,294 33,000,590 (9%) 60,379,407 64,593,255 (7%)
• In H1 2022 Revenue for the Courier Business decreased by 12% YoY to AED 1.85 billion,
and in Q2 Revenue declined 15% to AED 936 million. The lower revenue in both periods is
owed predominately to lower volumes from the cross-border International Express
business, which saw a 16% YoY and 18% YoY decline in volumes in the H1 and Q2 periods,
respectively.
• Domestic Express business remained relatively resilient, with H1 2022 Revenue dipping 3%
YoY to AED 702 million, reflecting the 4% YoY decline in volumes for that period.
• Despite softening volumes, Courier business gross profit margin held firm at 28% in H1
2022 and 29% in Q2 2022.Alaa Saoudi, Chief Operating Officer – Express, said: “The COVID years of 2020 and
2021 drove hyper-activity in the express and last mile sector, however this phenomenon is
starting to fade. This year, we started to see a normalization in e-Commerce activities as
well as macroeconomic headwinds. This has undoubtedly impacted our performance
during this period on a top line level, however, we remain focused on driving greater
efficiencies to maintain stable gross profit margins.
In this context, we concentrate efforts on driving quality earnings and lowering our cost to
serve. We are progressing with the launch of our premium product, and are introducing
innovative solutions including paperless returns and e-commerce fulfilment solutions. We
continue to take a prudent approach to cost management.
Furthermore, we worked on enhancing the last mile journey by expanding our fleet of pick-
up and drop-off locations (PUDO) in the GCC by 22% compared to Q1 2022, as well as
adopting a fleet management platform to help optimize our fleet performance.
Meanwhile, our strategic alliance with DPDgroup enabled us to execute on our
commitment to facilitating global trade as we opened three new trade lanes in Italy,
Germany, France and Netherlands.”
Logistics & Freight Forwarding: Aramex’s Logistics & Freight Forwarding business
includes air freight, sea freight, land freight, and warehousing and distribution solutions. It
serves a B2B customer base across multiple verticals including industrials, healthcare &
pharmaceutical, aerospace, retail & fashion, amongst others.
Logistics & Freight Forwarding Business Financial Highlights
%YoY %YoY
In Thousands of AED Q2 2022 Q2 2021 H1 2022 H1 2021
Change Change
Logistics & Freight
544,166 437,404 24% 1,047,404 830,270 26%
Forwarding Revenue
Freight Forwarding
432,410 328,595 32% 823,542 616,875 34%
Revenue
Integrated Logistics &
Supply Chain Solutions 111,756 108,809 3% 223,862 213,395 5%
Revenue
Logistics & Freight-
Forwarding Operating 22,371 (4,917) 555% 42,942 4,610 832%
ProfitFreight-Forwarding Shipment Volumes
%Y oY %Y oY
Q2 2022 Q2 2021 H1 2022 H1 2021
Change Change
Land Freight (FTL) 6,768 5,981 13% 14,038 11,932 18%
Land Freight (LTL KGs) 7,755,561 7,394,215 5% 15,773,676 13,791,148 14%
Sea Freight (FCL TEU) 7,179 9,183 (22%) 15,398 17,849 (14%)
Sea Freight (LCL CBM) 4,066 28,129 (86%) 9,396 41,281 (77%)
Air Freight (KGs) 16,897,577 11,538,110 46% 30,310,592 23,066,952 31%
• In H1 2022, Revenue for the Logistics & Freight-Forwarding business increased 26% YoY
to AED 1.05 billion and Q2 2022 registered a 24% YoY increase to AED 544 million on the
back of strong performance of the Freight-Forwarding business, as well as the steady
pace of growth of the Logistics business.
• Freight-Forwarding Revenue surged 34% YoY in H1 2022 to AED 824 million and by 32%
YoY in Q2 2022 to AED 432 million. The remarkable growth is predominantly driven by
solid demand from the industrial and SME sectors, as well as higher contributions from
high-growth sectors including retail and pharmaceuticals. In Q2 2022, Gross profit and
EBIT are growing at a much faster rate than revenue, indicating the success of the
initiatives to improve capabilities and operational efficiencies.
• Integrated Logistics & Supply Chain Solutions revenues rose 5% YoY in H1 2022 to AED
224 million and 3% YoY in Q2 2022 to AED 112 million attributed to strong retail activity,
increased volumes from industrial clients, and new business wins in GCC, Egypt and
Ireland. The segment also witnessed significant growth in margins driven by robust client
management and strong operational and cost efficiencies. The gross profit margin in Q2
2022 was 25% up from the 6% in the same period last year. Meanwhile, the gross profit
margin in H1 2022 was 19%, up from 12% in the previous year.
Mohammad Alkhas, Chief Operating Officer – Logistics & Freight-Forwarding, said:
“The Logistics & Freight-Forwarding business sustained a remarkable growth momentum
as we focused on capitalizing on verticals where Aramex has a dominant position while
adopting a solutions-oriented customer approach to attract new customers.
During the period, we continued our efforts to enable global trade and enhance
connectivity, as well as consolidated trade lanes between Europe and the Middle East. We
also progressed our digital strategy to drive efficiencies across the business including
automation, optimization of storage methods, and wider improvements in our IT and data
systems.”
- Ends –About Aramex:
Since its foundation in 1982, Aramex has grown to become a global leader in the logistics and transportation industry,
recognized for its customized and innovative services for businesses and consumers. Listed on the Dubai Financial
Market (DFM) and headquartered in the UAE, Aramex’s location bridges the path between East and West, enabling its
reach to more customers with the provision of effective logistics solutions worldwide. Aramex currently has business
operations in 600+ cities across more than 60 countries worldwide and employs over 16,000 professionals. Aramex
offers innovative services and solutions, including international and domestic express delivery, freight-forwarding,
integrated logistics and supply chain management and e-Commerce solutions. Aramex is strategically leveraging
technology for better and more efficient last-mile delivery solutions. This approach has significant benefits, and that’s
why Aramex considers itself to be a technology-driven enterprise, selling transportation and logistics solutions without
owning heavy assets.
For more information, please visit us: www.aramex.com
Follow us on:
For more information, please contact:
Aramex
Mohammad Al Qassem Anca Cighi
Senior Manager – Corporate Communications Investor Relations Director
mohammadalah@aramex.com Investorrelations@aramex.com
Brunswick Group
Celine Aswad
Director
ARAMEX@brunswickgroup.com | positive |
Foodco National Foodstuff Co PJSC
Disclosure of the appointment of the General Manager
of a Subsidiary.
Date 10/08/2023
Abu Dhabi National Foodstuff L.L.C
Name of the Listed Company A subsidiary of
Foodco National Foodstuff PrJSC
Name of the appointed
Ahmed Gawish
General Manager
Starting date of appointment 10/07/2023
Mr. Ahmed Gawish is an adept leader and visionary with a rich
background in FMCG business management, marketing, and sales.
His extensive achievements showcase his pivotal role in fostering
growth and enhancing profitability. Holding an MBA in marketing
A brief summary of the management and recognized as a certified digital marketer, Mr.
appointed General Manager: Gawish's years of professional expertise and dynamic leadership
will propel Foodco to unparalleled success. His journey serves as a
compelling testament to the influence of innovation, unwavering
determination, and exceptional leadership in shaping industries
and attaining remarkable milestones.
Taysir Mokashfi
Board Secretary
10/08/2023
Page 1 of 1Foodco National Foodstuff Co PJSC
Results of the Board of Directors meeting
Date 10/08/2023
Name of the Listed Company Foodco National Foodstuff PJSC
Thursday 10/08/2023
Date and day of the meeting:
Via Video Conference (Microsoft Teams)
The starting time of the meeting 12:00 PM
The ending time of the meeting 01:00 PM
Number of board members present 5
Quorum achieved (%) 100%
1. The previous minutes of meeting has been approved.
2. The financial statement for the period ending 30/06/2023 has
been discussed and approved (Net loss AED10.426 million,
Decisions / Resolutions of the compared to net loss AED8.198 million for the same period of
meeting 2022).
3. Other operation matters have been discussed and the
appropriate decisions have been taken.
Taysir Mokashfi
Board Secretary
10/08/2023
Page 1 of 1 | positive |
ADSB
,414-1±19 °mull ci -41
Discussion
Management
and Analysis
HIGHLIGHTS
Revenue for the period ending 30 June 2022 was AED 373 million, more than 3 times ahead of the AED 104 million for the comparable period in 2021. The increase was primarily due
to the current period's contribution of the prestigious Falaj3 contract to build four new
Offshore Patrol Vessels for the UAE Navy which started in the late fourth quarter of last
year. The first milestone of the project has been completed ahead of schedule during the
current period with two further milestones scheduled in the second half of the year.
The net profit for the period was AED 5.2 million, compared with a net loss of AED (10.2)
million for the same period in 2021, even after a gain of AED 17.6 million on disposal of
floating dock was realized in April 2021, though the Company eventually reported a net
profit of AED 11 million for the full year 2021, after realizing AED 23.7 million of other
income attributed to the net reversal of provisions, and which saw the Company return to
profit after three years of net losses.
The net profit for the period would have been AED 11.7 million before the effect of an
increased IFRS 9 provision on receivables and contract assets resulting from a significant
increase in Central Bank interest rates impacted by the current economic situation. It is
expected that a proportion of this provision will be reversed on receipt of payments in due
course.
The Company has successfully delivered in the period the contract for the procurement
and refurbishment of a tug for one of its major customers, and delivered the order to build
three VIP Limos during the period. Additionally, the Company completed the delivery and
commission of specialized equipment under a military program while continuing its MSS
Military and Commercial repair and maintenance operations. During the period a total of
Mussafah Industrial Area atLAticui ddbin
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Military
and Commercial
repair
and
maintenance
operations.
During
the
period
a total
of
commission
of
specialized
equipment
under
a
military
program
while
continuing
its
MSS
three
VIP Limos
during
the
period.
Additionally,
the
Company
completed
the
delivery
and
and
refurbishment
of
a
tug
for
one
of
its
major
customers,
and
delivered
the
order
to
build
The
Company
has
successfully
delivered
in
the
period
the
contract
for
the
procurement
course. expected
that
a proportion
of
this
provision
will
be reversed
on
receipt
of
payments
in due
increase
in Central
Bank
interest
rates
impacted
by
the
current
economic
situation.
It
is
increased
IFRS
9
provision
on
receivables
and
contract
assets
resulting
from
a
significant
The
net
profit
for
the
period
would
have
been
AED
11.7
million
before
the
effect
of
an
profit
after three
years
of
net
losses.
income
attributed
to
the
net
reversal
of
provisions,
and
which
saw
the
Company
return
to
profit
of AED
11
million
for
the
full
year
2021,
after
realizing
AED
23.7
million
of
other
floating
dock
was
realized
in
April
2021,
though
the
Company
eventually
reported
a net
million
for the
same
period
in 2021,
even
after
a gain
of
AED
17.6
million
on
disposal
of
The
net
profit
for
the
period
was
AED
5.2
million,
compared
with
a
net
loss
of
AED
(10.2)
current
period
with
two
further
milestones
scheduled
in
the
second
half
of
the
year.
year.
The first
milestone
of the
project
has
been
completed
ahead
of
schedule
during
the
Offshore
Patrol
Vessels
for the
UAE
Navy
which
started
in
the
late
fourth
quarter
of last
to
the
current
period's
contribution
of
the
prestigious
Falaj3
contract
to
build
four
new
of
the
AED 104
million
for
the
comparable
period
in
2021.
The
increase
was
primarily
due
Revenue
for the
period
ending
30
June
2022
was
AED
373
million,
more
than
3
times
ahead
HIGHLIGHTS
and
Analysis
Management
Discussion
°mull
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41
,414-1±19 ADSBADSB
04--b9
dearth cl
94 dockings were completed, and ADSB received an LOI from its major customer for the
major refit of the second of class vessel of a previously delivered naval ship build program.
Though the five-year Falaj3 contract will provide ADSB with a sustainable basis for future
growth and profitability, ADSB continues to be very active in pursuing both additional
domestic and export sales opportunities. The Company now has a significant pipeline of
new business opportunities and expects to be able to announce contract signatures in the
second half of 2022.
After payments made to major Falaj3 sub -contractors during the period the net cash
position at June 30 was AED 255 million. The cash position is expected to remain healthy
for the remainder of 2022 but will return to a cash neutral position on the Falaj contract as
payments are made according to the agreed schedules with sub -contractors.
David Massey
Chief Executive Officer
Mussafah Industrial Area ascli011 Euibia
P.O. Box 8922 8922 :y.,p
Abu Dhabi, UAE avian apjall c.)1iLo)11,,n4bg4i
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P.O.
Box
8922
8922
:y.,p
Mussafah
Industrial
Area
ascli011
Euibia
Chief
Executive
Officer
David
Massey
payments
are
made
according
to
the
agreed
schedules
with
sub
-contractors.
for
the
remainder
of
2022
but
will
return
to
a
cash
neutral
position
on
the
Falaj
contract
as
position
at
June
30
was
AED
255
million.
The
cash
position
is
expected
to remain
healthy
After
payments
made
to
major
Falaj3
sub
-contractors
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net
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new
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able
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contract
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the
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export
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opportunities.
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Company
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very
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in
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Though
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five-year
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contract
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cl
04--b9 ADSB | positive |
Q1 2023 Results Report
Fertiglobe Reports Q1 2023 Results
Highlights:
Financial and Outlook
•
Fertiglobe reported Q1 2023 revenues and adjusted EBITDA at $694 million and $297 million, respectively.
Adjusted net profit was $135 million in Q1 2023, and the company generated free cash flow of $271 million
in Q1 2023.
•
Fertiglobe delivered 9% higher own-produced sales volumes in Q1 2023 compared to Q1 2022, supported
by a disciplined commercial strategy and centralized distribution capabilities.
•
Fertiglobe is well positioned to balance dividend payments while selectively pursuing value-creative growth
opportunities below replacement cost, supported by its balance sheet (net cash: $564 million as of
31 March 2023).
•
Fertiglobe's management guides for H1 2023 dividends of at least $250 million, payable in October 2023.
The final dividend amount will be announced with Q2 2023 results in August 2023.
•
In addition to its manufacturing improvement plan, Fertiglobe has recently launched a cost optimization
initiative targeting an annualized run-rate of $50 million in savings to reinforce its first quartile cost
positioning, planned to be achieved over the next 12 - 18 months. In addition, the recent devaluation of
the Egyptian pound is expected to have a positive impact on the company's cost base.
•
Market Outlook: Nitrogen prices declined as result of energy price volatility, short term buying patterns
and ramp-up of new supply commissioned in 2022, but markets have begun to tighten into the second
quarter and prices started to improve in some regions. Decades low grain stocks and high farmer profitability
continue to support a demand recovery with limited new supply from 2023 onwards.
Corporate Updates
•
Fertiglobe produced on-spec green ammonia at its Egypt facilities in Q1 2023, following the start of
commissioning of Egypt Green Hydrogen in November 2022. The Final Investment Decision (FID) on the
full-scale 100MW plant is targeted during 2023.
Abu Dhabi, UAE – 09 May 2023: Fertiglobe (ADX: FERTIGLB), the strategic partnership between ADNOC and
OCI Global, the world’s largest seaborne exporter of urea and ammonia combined, the largest nitrogen fertilizer
producer in the Middle East and North Africa (“MENA”) region, and an early mover in sustainable ammonia, today
reported Q1 2023 revenue of $694 million, adjusted EBITDA of $297 million, adjusted net profit of $135 million,
and free cash flow of $271 million. This is driven by lower selling prices during the quarter on continued declines
in European gas prices and demand delays in several key regions, primarily due to weather conditions, as well as
the deferral of 100kt in urea shipments to Ethiopia, with an estimated EBITDA impact of $35 million.
1Q1 2023 Results Report
Ahmed El-Hoshy, CEO of Fertiglobe, commented:
“The nitrogen outlook remains favorable in the medium to longer term. New supply that commisioned in 2022,
has been absorbed by the market, and limited major greenfield supply additions are expected in the next four
years. Agricultural demand is buoyed by attractive farmer economics, incentivizing nitrogen fertilizer application to
replenish decade-low grain stocks. European gas futures over next winter and 2024 are pricing in expectations
of a tighter market than current levels, implying ammonia cost support of ~$815/t (including CO ) and ~$650/t
2
(excluding CO ). This should result in closures of European marginal production if pricing remains below cost for a
2
sustained period.
Natural gas prices declined sharply in Q1 2023 due to a mild winter and resulted in lower marginal costs in
Europe, causing deferred buying in several key regions. This, combined with relatively muted industrial demand,
led to selling prices well below their levels in the same period last year, impacting our earnings growth in Q1
2023 on a year on year basis. In Q1 2023, we have delivered revenues of $694 million, adjusted EBITDA of
$297 million, and free cash flow of $271 million, below Q1 2022 levels of $1,185 million, $625 million, and
$521 million, respectively.
I am pleased to report that despite slower price momentum in Q1 2023 and a deferral of two 50kt urea shipments
to Ethiopia at a weighted average price of $700/t, our team was able to deliver 9% higher own-produced sales
volumes during the quarter. This is driven by our disciplined commercial strategy and centralized distribution
capabilities, targeting demand centres that offer attractive netbacks. We continue to have a strong order book for
the coming months.
In line with our continued commitment to creating and returning shareholder value, we are pleased to announce
our guidance for H1 2023 dividends at a minimum of $250 million or the equivalent of at least AED 11 fils per
share, payable in October 2023, with the exact amount to be disclosed with Q2 2023 results in August 2023.
We are progressing several initiatives to further support free cash generation, including our manufacturing
improvement plan announced last year, which is on track to deliver operational and EBITDA efficiencies over the
next 2-3 years. In addition, we also recently launched an initiative to further optimize Fertiglobe's cost structure,
targeting $50 million in annualized savings, aimed to reinforce our top quartile cash cost positioning, and we
expect to achieve these savings over the next 12 - 18 months. In addition, we expect a positive impact from the
recent devaluation of the Egyptian pound on our cost base.
Following the commissioning of the first phase of Egypt Green Hydrogen in Ain Sokhna during COP27 in Q4 2022,
we are excited to announce the production of on-spec green ammonia at our facilities in Egypt during the quarter.
We expect volumes to ramp up over the year, and target 2023 FID on the full scale 100MW electrolyzer plant,
planned to produce up to c.15,000 tons of green hydrogen as feedstock for production of up to 90,000 tons of
green ammonia per year in Fertiglobe’s existing ammonia plants.
With these projects and initiatives, we reiterate our commitment to delivering on our sustainability agenda, and to
showing serious progress towards a more sustainable production footprint for ourselves, while contributing to the
decarbonization of other industries in our value chain, including power and transport.
I am grateful to the Fertiglobe team for a continued focus on safety, performance and excellence and look forward
to our journey towards a more sustainable future for our industry and for others.”
2Q1 2023 Results Report
Markets
Fertiglobe believes the outlook for nitrogen markets continues to be supported by crop fundamentals and
tight supply dynamics in the medium term
i. Nitrogen demand is expected to recover to support rebuilding of global grain stocks:
◦
Global grain stock-to-use ratios remain at the lowest levels in 20 years, and it will likely take at least
until 2025 to replenish stocks.
◦
Forward grain prices (US corn futures >$5 / bushel to the end of 2025, compared to $3.7 / bushel
from 2015 - 2019) support farm incomes and incentivize nitrogen demand to be above historical
trend levels.
◦
The recent decline in nitrogen pricing is supportive of improving affordability and demand.
ii. Nitrogen supply is expected to be tighter over 2023 – 2027:
◦
In 2022, six million tons of new urea capacity commissioned, with some plants ramping up in 2023.
Industry consultants expect no new major greenfield urea supply in 2023 and limited additions
to 2027.
◦
Chinese urea exports are expected to remain low over the medium term in the range of 3 – 4 mtpa.
iii. Feedstock pricing is expected to remain well above historical averages:
◦
2023 - 2025 forward European gas prices are c.$16/mmBtu (c.3x higher than 2015-2019), with higher
prices anticipated for next winter
◦
The gas forwards imply marginal cost support levels for ammonia of c.$815/ton including CO for next
2
winter and 2024, which should result in closures of European marginal production if pricing remains
below cost for a sustained period of time.
Dividends and capital structure
On 22 December 2022, Fertiglobe refinanced its existing bridge loan facility with a new three-year facility
amounting to $300 million, with a margin of 1.5% and a new five-year facility amounting to $600 million, with
a margin of 1.75%, extending Fertiglobe’s weighted average debt maturity from 2 years to 4 years. In addition,
the company increased the capacity of its existing Revolving Credit Facility (RCF) by $300 million to reach
$600 million, and extended the maturity to December 2027 (from August 2026), providing ample liquidity.
As at the end of March 2023, Fertiglobe reported a net cash position of $564 million (0.3x net cash / adjusted LTM
EBITDA), compared to net cash of $287 million as at 31 December 2022 (0.1x net cash / adjusted LTM EBITDA),
supporting future growth opportunities as well as dividend pay-out.
Fertiglobe remains committed to its dividend policy to substantially pay out all excess free cash flows after
providing for growth opportunities, while maintaining investment grade credit ratings (S&P: BBB-, Moody’s: Baa3,
Fitch: BBB-; all with stable outlooks). Fertiglobe paid a total of $1,450 million in cash dividends for 2022, including
H1 2022 dividends of $750 million paid in October 2022, and H2 2022 dividends of $700 million paid in April 2023.
Management guides for H1 2023 dividends of at least $250 million or the equivalent of at least AED 11 fils per
share, payable in October 2023.
3Q1 2023 Results Report
Consolidated Financial Results at a Glance1
Financial Highlights ($ million, unless otherwise stated)
$ million unless otherwise stated Q1 2023 Q1 2022 % Δ
Revenue 693.7 1,184.8 (41%)
Gross profit 269.1 587.8 (54%)
Gross profit margin 38.8% 49.6%
Adjusted EBITDA 297.3 624.6 (52%)
Adjusted EBITDA margin 42.9% 52.7%
EBITDA 295.2 619.6 (52%)
EBITDA margin 42.6% 52.3%
Adjusted net profit attributable to shareholders 135.4 361.0 (62%)
Reported net profit attributable to shareholders 135.7 356.6 (62%)
Earnings per share ($)
Basic earnings per share 0.016 0.043 (62%)
Diluted earnings per share 0.016 0.043 (62%)
Adjusted earnings per share 0.016 0.043 (62%)
Earnings per share (AED)
Basic earnings per share 0.060 0.158 (62%)
Diluted earnings per share 0.060 0.158 (62%)
Adjusted earnings per share 0.060 0.160 (62%)
Free cash flow 271.4 520.8 (48%)
Capital expenditure 12.7 9.4 35%
Of which: Maintenance Capital Expenditure 11.0 6.8 62%
31 Mar 23 31 Dec 22 % Δ
Total Assets 5,662.1 5,530.6 2%
Gross Interest-Bearing Debt 1,113.8 1,155.2 (4%)
Net (Cash)/Debt (564.2) (286.8) n/m
Q1 2023 Q1 2022 % Δ
Sales volumes (‘000 metric tons)
Fertiglobe Product Sold 1,363 1,254 9%
Third Party Traded 165 276 (40%)
Total Product Volumes 1,528 1,530 (0%)
1 Unaudited
4Q1 2023 Results Report
Operational Highlights
Highlights:
•
12-month rolling recordable incident rate to 31 March 2023 of 0.24 incidents per 200,000 manhours.
•
Fertiglobe's Q1 2023 performance was impacted by lower selling prices compared to peak pricing in the
same period last year, mainly on lower European gas prices combined with demand delays in several
key regions.
•
Fertiglobe’s total own-produced sales volumes were up 9% to 1,363kt in Q1 2023 vs Q1 2022, driven by:
◦
A 6% increase in ammonia own-produced sales volumes to 236kt from 223kt in Q1 2022
◦
A 9% increase in urea own-produced sales volumes to 1,127kt YoY compared to 1,031kt in Q1 2022
•
Traded third party volumes decreased 40% YoY to 165kt in Q1 2023, compared to 276kt in Q1 2022.
•
Total own-produced and traded third party volumes of 1,528kt were largely unchanged in Q1 2023 compared
to Q1 2022.
•
Middle East ammonia benchmark prices were down 31% in Q1 2023, while Egypt urea benchmark prices
were down 51% compared to the same period in 2022 (29% and 34% lower compared to Q4 2022).
Product sales volumes
Sales volumes ('000 metric tons) Q1 2023 Q1 2022 % Δ
Own Product
Ammonia 236 223 6%
Urea 1,127 1,031 9%
Total Own Product Sold 1,363 1,254 9%
Third-Party Traded
Ammonia 31 52 (40%)
Urea 134 224 (40%)
Total Traded Third-party Product 165 276 (40%)
Total Own Product and Traded Third-party 1,528 1,530 (0%)
5Q1 2023 Results Report
Benchmark prices1
Q1 '23 Q1 '22 % Δ Q4 '22 % Δ
Ammonia NW Europe, FOB $/mt 688 1,335 (48%) 1,109 (38%)
Ammonia Middle East, FOB $/mt 615 897 (31%) 868 (29%)
Granular Urea Egypt, FOB $/mt 409 841 (51%) 616 (34%)
Granular Urea Middle East, FOB $/mt 359 776 (54%) 565 (36%)
Natural gas TTF (Europe) $ / mmBtu 16.8 32.2 (48%) 28.4 (41%)
Natural gas Henry Hub (US) $ / mmBtu 2.8 4.6 (39%) 6.1 (54%)
1 Source: CRU, MMSA, ICIS, Bloomberg
Operational Performance
Total own-produced sales volumes were up 9% during the first quarter of 2023 to 1,363kt compared to the same
period last year.
Ammonia prices were well below peak prices in Q1 2022, with ammonia Middle East benchmark down 31%
YoY, while the urea Egypt benchmark price was down 51%. Compared to Q4 2022, the ammonia Middle East
benchmark was down 29%, while the urea Egypt benchmark price was down 34%.
The lower selling prices during the quarter resulted in a 41% YoY decrease in revenues to $694 million in Q1
2023. This translated into a 52% decline in adjusted EBITDA to $297 million in Q1 2023 from $625 million in Q1
2022. As a result, Fertiglobe’s adjusted EBITDA margin dropped to 43% in Q1 2023 from 53% in Q1 2022.
6Q1 2023 Results Report
Segment overview Q1 2023
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 609.9 83.8 - 693.7
Gross profit 265.9 3.2 - 269.1
Operating profit 242.0 3.2 (17.4) 227.8
Depreciation & amortization (65.6) (0.5) (1.3) (67.4)
EBITDA 307.6 3.7 (16.1) 295.2
Adjusted EBITDA 309.7 3.7 (16.1) 297.3
Segment overview Q1 2022
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 990.4 194.4 - 1,184.8
Gross profit 587.6 5.2 (5.0) 587.8
Operating profit 567.0 5.2 (14.6) 557.6
Depreciation & amortization (61.9) - (0.1) (62.0)
EBITDA 628.8 5.2 (14.4) 619.6
Adjusted EBITDA 628.8 5.2 (9.4) 624.6
7Q1 2023 Results Report
Financial Highlights
Summary results
Consolidated revenue decreased by 41% to $694 million in the first quarter of 2023 compared to the same quarter
in 2022, driven by lower urea selling prices.
Adjusted EBITDA declined by 52% YoY to $297 million in Q1 2023 compared to $625 million in Q1 2022.
Q1 2023 adjusted net profit was $135 million compared to an adjusted net profit of $361 million in Q1 2022.
Reported net profit attributable to shareholders was $136 million in Q1 2023 compared to a net profit attributable to
shareholders of $357 million in Q1 2022.
Consolidated statement of income
$ million Q1 2023 Q1 2022
Net revenue 693.7 1,184.8
Cost of sales (424.6) (597.0)
Gross profit 269.1 587.8
Other income - 0.2
SG&A (41.2) (30.4)
Other expense (0.1) -
Adjusted EBITDA 297.3 624.6
EBITDA 295.2 619.6
Depreciation & amortization (67.4) (62.0)
Operating profit 227.8 557.6
Interest income 2.3 0.4
Interest expense (21.5) (16.8)
Other finance (expense)/income (21.6) 15.9
Net finance costs (40.8) (0.5)
Net profit before tax 187.0 557.1
Income tax 1.8 (90.0)
Net profit 188.8 467.1
Non-Controlling Interest (53.1) (110.5)
Net profit attributable to shareholders 135.7 356.6
Adjusted net profit attributable to shareholders 135.4 361.0
8Q1 2023 Results Report
Reconciliation to Alternative Performance Measures
Adjusted EBITDA
Adjusted EBITDA is an Alternative Performance Measure (APM) that intends to give a clear reflection of
underlying performance of Fertiglobe’s operations. The main APM adjustments at EBITDA level relate to the
movement in provisions during the quarter
Reconciliation of reported operating income to adjusted EBITDA
Adjustment
$ million Q1 2023 Q1 2022 in P&L
Operating profit as reported 227.8 557.6
Depreciation and amortization 67.4 62.0
EBITDA 295.2 619.6
APM adjustments for:
Movement in provisions 2.1 5.0 Cost of sales
Total APM adjustments 2.1 5.0
Adjusted EBITDA 297.3 624.6
Adjusted net profit attributable to shareholders
At the net profit level, the main APM adjustments relate to the impact on non-cash foreign exchange gains and
losses on USD exposure as well as non-controlling interest
Reconciliation of reported net profit to adjusted net profit
$ million Q1 2023 Q1 2022 Adjustment in P&L
Reported net profit attributable to shareholders 135.7 356.6
Adjustments for:
Adjustments at EBITDA level 2.1 5.0
Finance income
Forex loss/(gain) on USD exposure 0.7 (14.6) and expense
Uncertain tax
Non-controlling interest (3.1) 14.0 positions / minorities
Total APM adjustments at net profit level (0.3) 4.4
Adjusted net profit attributable to shareholders 135.4 361.0
9Q1 2023 Results Report
Free Cash Flow and Net Cash
Free cash flow before growth capex amounted to $271 million during Q1 2023, compared to $521 million during
the same period last year, reflecting performance for the quarter and working capital inflows offset by tax, interest
and lease payments.
Total cash capital expenditures including growth capex were $13 million in Q1 2023 compared to $9 million in Q1
2022, of which $11 million was related to maintenance capital expenditures. For 2023, management maintains its
guidance for capital expenditures (excluding growth capital expenditure) of $100-130 million.
Reconciliation of EBITDA to Free Cash Flow and Change in Net Cash
$ million Q1 2023 Q1 2022
EBITDA 295.2 619.6
Working capital 9.9 (79.4)
Maintenance capital expenditure (11.0) (6.8)
Tax paid (21.7) (56.4)
Net interest paid (8.6) (11.7)
Lease payments (6.0) (1.3)
Dividends paid to non-controlling interests and withholding tax - (3.8)
Ecremage 13.6 60.6
Free Cash Flow 271.4 520.8
Reconciliation to change in net cash:
Growth capital expenditure (1.7) (2.6)
Other non-operating income 14.2 -
Net effect of movement in exchange rates on net cash (5.9) (25.7)
Other non-cash items (0.6) (3.5)
Net Cash Flow in Net Cash 277.4 489.0
10Q1 2023 Results Report
Investor and Analyst Conference Call
On 9 May 2023 at 3:30 PM UAE (12:30 PM London, 9:30 AM New York), Fertiglobe will host a conference call for
investors and analysts. To access the call please dial:
International: +44 20 3936 2999
UAE: 0800 0357 04553
UK: 020 3936 2999 / Toll free: 0800 640 6441
United States: 1 646 664 1960 / Toll Free: 1 855 9796 654
Passcode: 845998
About Fertiglobe:
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, and an early mover
in sustainable ammonia. Fertiglobe’s production capacity comprises of 6.7 million tons of urea and
merchant ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria, making it the largest
producer of nitrogen fertilizers in the Middle East and North Africa (MENA), and benefits from direct access to
six key ports and distribution hubs on the Mediterranean Sea, Red Sea, and the Arab Gulf. Headquartered
in Abu Dhabi and incorporated in Abu Dhabi Global Market (ADGM), Fertiglobe employs more than 2,700
employees and was formed as a strategic partnership between OCI Global (“OCI”) and the Abu Dhabi
National Oil Company (“ADNOC”). Fertiglobe is listed on the Abu Dhabi Securities Exchange (“ADX”) under the
symbol “FERTIGLB” and ISIN “AEF000901015. To find out more, visit:www.fertiglobe.com.
For additional information, contact:
Fertiglobe Investor Relations: For additional information on Fertiglobe:
Rita Guindy www.fertiglobe.com
Director
Email: rita.guindy@fertiglobe.com
Hans Zayed
Director
Email: hans.zayed@fertiglobe.com
Investor.relations@fertiglobe.com
11 | positive |
ADNOC Classification: Public
b;
Third Quarter and Nine
Months of 2022 Results
Management Discussion & Analysis Report
;
11 November 2022
First Quarter 2020
Results
12 May 2020
1 | P ageADNOC Classification: Public
Key Highlights: Record results in 9M 2022, with a positive
outlook for Q4 2022 and beyond
9M 2022 Results
Fuel volumes
7,203 +6.5% y-o-y
million liters
Retail fuel volumes: +3.8% driven by country’s ongoing economic activities growth and network
expansion
Commercial fuel volumes: +12.6% driven by strong growth in the corporate business
Revenue
23,924 +62.8% y-o-y
driven by higher growth in total fuel volumes and selling prices (higher crude oil prices) as well as higher
AED million non-fuel business contribution
Gross profit
4,443 +23.7%* y-o-y
AED million
driven by higher fuel volumes and inventory gains as well as growth in the Non-Fuel Retail business
2,827 Retail fuel: +31.8%* y-o-y
AED million
driven by higher fuel volumes, as well as higher inventory gains of AED 488 million in 9M 2022 (9M 2021:
AED 268 million)
478 Retail non-fuel: +8.7% y-o-y
AED million
driven by strong growth in non-fuel transactions, conversion rate in Q3 2022, convenience stores network
expansion, improved customer offerings following revitalization of stores, marketing and promotion
campaigns, and higher Food and Beverage (F&B) sales
1,138 Commercial: +13.0%* y-o-y
AED million
driven by higher Corporate fuel volumes, partially offset by lower Aviation fuel volumes
EBITDA
2,862 +26.4% y-o-y
AED million
driven by higher fuel volumes and inventory gains as well as higher contribution from non-fuel retail
business
Underlying EBITDA (EBITDA excluding inventory losses/gains and one-offs)
2,467 +22.3% y-o-y
AED million
driven by higher fuel volumes
Net profit
2,329 +38.5% y-o-y
AED million
driven by higher EBITDA and lower depreciation charges due to a change in estimated useful life of assets
implemented in Q3 2022. For further details, please refer to page 6 of this document.
* For comparable purposes, prior year periods OPEX was reclassified. Further details of the reclassification can be found on page 6 of this
document
2 | P ageADNOC Classification: Public
Strong cash generation and balance sheet – 9M 2022
2,249 Free cash flow (+26.6% y-o-y)
driven by robust cash flow from operating activities and a positive effect of the working capital change
AED million
The Company maintained a strong financial position at the end of September 2022 with liquidity of AED 5.8
billion, in the form of AED 3.0 billion in cash and cash equivalents and AED 2.8 billion in unutilized
credit facility
0.68x Net debt to EBITDA ratio
ADNOC Distribution’s balance sheet remained strong with a Net debt to EBITDA ratio of 0.68x as of 30
September 2022
Successful refinancing
On 26 October 2022, the Company successfully refinanced a AED 5.5 billion ($1.5 billion) loan for a 5 year
term ahead of the maturity date of its existing term loan (10 Nov. 2022) at competitive rates despite current
market conditions. It also secured a Revolving Credit Facility (RCF) of AED 2.8 billion ($750 million) from
ADNOC PJSC for a 5 year term at competitive rates, reaffirming ADNOC’s support to ADNOC Distribution.
The new term debt matures at the end of 2027 with no covenants in place
Operational highlights – 9M 2022
47 New stations in UAE and KSA 547 Total stations network
Including 6 sites in Dubai 481 in UAE (37 in Dubai)
66 in KSA
20 New convenience stores in 366 Total convenience stores
UAE network in UAE
132 Fuel transactions 29 Non-Fuel transactions
+14.4% y-o-y +17.6% y-o-y
Million Million
3 | P ageADNOC Classification: Public
Strategy Update: continued strong execution momentum
During the first nine months of 2022, ADNOC Distribution delivered strong results, demonstrating continued
execution momentum on its Smart Growth Strategy. The Company remains committed to delivering on its growth
initiatives and generating long-term shareholder value.
Fuel business (Retail and Commercial)
ADNOC Distribution’s total fuel volumes continued to grow over the first nine months of 2022, with an increase
of 7% year-on-year, supported by the ongoing economic activities expansion in UAE and strong growth in the
corporate business. In addition, the Company continued to expand in Dubai and Saudi Arabia by adding new
stations, resulting in incremental fuel volumes in 9M 2022 compared to the same period of 2021.
Network expansion: The Company accelerated delivery of its growth strategy throughout 9M 2022, with the
opening of 47 new stations in the UAE and KSA, achieving c. 80% of its 2022 network expansion target.
o Domestically: ADNOC Distribution’s UAE network grew to 481 retail fuel stations as of 30 September 2022.
In the first nine months of 2022, the Company opened 21 new service stations in the UAE, out of which 6
were in Dubai. As a result, the company’s service station network in Dubai expanded to 37 stations at the
end of 9M 2022
In Dubai, ADNOC Distribution recently opened its new flagship station in Dubai. The company’s first station
on Sheikh Zayed Road leverages advanced technologies – including smart cameras and digital screens at
the pump – to deliver a personalized, digitally immersive and seamless customer journey. The station also
offers impressive sustainability credentials, being partially powered by renewable sources – including an
energy-generating walkway in the first double-storey ADNOC Oasis convenience store
o Internationally: The Company continued to accelerate execution on its plans in the Kingdom of Saudi
Arabia, with 26 new stations opened during the nine months of 2022, taking its total network in Saudi Arabia
to 66 stations as of 30 September 2022. The Company is currently working on revitalization and rebranding
its network in KSA
Beyond the GCC region, the first nine months of the year also saw the company further advance its
international expansion by entering into an agreement with TotalEnergies Marketing Afrique SAS, to acquire
a 50% stake in TotalEnergies Marketing Egypt LLC (which is among the top four fuel retail operators in
Egypt) for approximately AED 683 million ($185.9 million), with an additional earn-out of up to AED 63.5
million ($17.3 million), if certain conditions are satisfied. Completion of the acquisition is expected to occur
in Q1 2023 subject to the satisfaction of certain conditions, including customary regulatory approvals.
The partnership with TotalEnergies, a leading global multi-energy company with a strong brand and
successful track record in Egypt, includes a diversified portfolio comprising 240 fuel retail stations, 100+
convenience stores, 250+ lube changing stations, and car wash sites, as well as wholesale fuel, aviation
fuel and lubricant operations. This move aligns with the Company’s vision to establish ADNOC Distribution
as a regional fuel distribution leader and will provide sizeable operations in one of the largest countries in
MENA. The acquisition is expected to be earnings accretive to ADNOC Distribution from year one post
closing.
4 | P ageADNOC Classification: Public
Commercial business: the Company continued to maintain strong focus on proactive sales strategy during the
first nine months of 2022, mainly in the Corporate business. ADNOC Distribution’s corporate fuel volumes
witnessed a 28% year-on-year increase compared to the same period of 2021. The total number of export
network countries of ADNOC Distribution’s VOYAGER lubricants portfolio also rose to 22 markets over the first
nine months of the year compared to 17 markets in the same period last year. The company also launched a
new ADNOC VOYAGER green series, an alternative 100% plant-based lubricant range for petrol and diesel
engines.
Non-fuel business
The Company’s UAE network of convenience stores increased to 366 as of 30 September 2022, which includes
the addition of 20 new convenience stores in the UAE during nine months of 2022. The convenience stores
revitalization program continued, with 11 stores refurbished in the UAE in 9M 2022, offering fresh food, barista-
brewed coffee and a wider menu selection.
In line with the Company’s on-going non-fuel retail strategy to offer modern and digitally-enabled shopping
experience, ADNOC Distribution continued to enhance customer offerings through various initiatives, such as
refurbishment of stores, improvement in category management, the introduction of fresh food and premium
coffee products. On the back of these initiatives, the Company saw growth in convenience stores transactions
and revenues as well as an increase in Gross profit margins.
ADNOC Rewards loyalty program and Customer Focus
ADNOC Rewards loyalty program continued to add members in the first nine months of 2022, with more than
1.5 million members now enrolled and over 50 partner offers providing discounts and deals through the ADNOC
Distribution app. The program has been expanded to include a fuel redemption option whereby customers can
pay for their fuel with their ADNOC Rewards points.
Customer experience has been integral to the Company throughout the first nine months of 2022, with continuing
to offer customers promotions in-store and through the ADNOC Rewards. This includes the Let’s Go Shop and
Win Raffle, as well as comprehensive vehicle inspection, car wash, and lube change offers.
Cost Optimization
ADNOC Distribution’s operational expenditure (excl. depreciation) increased by 17.3% in the first nine months
of 2022 compared to the same period in 2021, after an increase in its network by 18% year-on-year and
associated operational costs. The Company continues to implement management initiatives to increase
operational efficiency across all business units and prudent cost controls.
Over the period 2019-2021, the Company met its target of like-for-like OPEX savings of between AED 367 and
550 million over 2019-2023 by achieving like-for-like OPEX savings of AED 378 million over 2019-2021.
CAPEX
In line with the guidance and plans to continue with our expansion strategy, the Company incurred CAPEX
(including accruals/provisions) of AED 744 million over nine months of 2022.
5 | P ageADNOC Classification: Public
Change in Financial presentation
To ensure robust reporting and fair representation of operating expenses, during Q3 2022 ADNOC Distribution
reclassified certain OPEX items and changed the accounting estimate of useful life of assets. The changes are
effective from 1st January 2022. However, the full retrospective adjustments for 9M 2022 (c. AED 162 million
OPEX reclassification to Cost of Goods Sold and AED 125 million reduction in depreciation charge) impacted
the financials of Q3 2022, and will structurally reduce OPEX and depreciation charge going forward.
The changes include:
1. Reclassification of certain OPEX items into Cost of Goods Sold (COGS):
- Fuel transport costs (the cost to transfer fuels from depots to retail stations)
- Aviation related OPEX (costs incurred by ADNOC Distribution and recovered at a margin from ADNOC as
per the Aviation Services Agreement which the Company entered with ADNOC at the time of the IPO)
2. Change in accounting estimate of useful life of assets:
- As part of regular review of useful lives of assets mandated by International Financial Reporting Standards
(IFRS), lives of certain assets have been extended in line with IAS 16. More details can be found in note
3 of ADNOC Distribution’s financial statements for the period ended 30 September 2022
Eng. Bader Al Lamki – Chief Executive Officer:
"I am pleased with our strong financial and operational performance. We have demonstrated a growth trajectory
and maintained robust cash generation with a strong balance sheet.
Meanwhile, the opening of our flagship service station in Dubai, has not only showcased our cutting-edge digital
customer experience, but also reiterated our commitment to long-term sustainable growth and generating
attractive shareholder returns.
We will continue to explore new growth opportunities that help us to business proof and support sustainable
operations of our Company.”
6 | P ageADNOC Classification: Public
Outlook: Positive growth outlook expected to continue in Q4
2022 and beyond
With the strong 9M 2022 results, ADNOC Distribution’s growth momentum is expected to continue through the
fourth quarter and into 2023 on the back of volumes growth, domestic and international expansion and higher
Non-Fuel Retail segment contribution. ADNOC Distribution remains committed to accelerating sustainable
growth and shareholder value supported by strong balance sheet and robust cash generation, investment in
electric vehicle chargers to capture new earnings growth opportunities, and distribution of attractive dividends
supported by the solid earnings growth.
The company continues to execute on its growth commitment to reach min. AED 3.67 billion ($1bn) EBITDA by
2023.
Fuel business
New Stations: after adding 47 new stations in UAE and KSA during the first nine months of 2022, the Company
expects delivery momentum to continue and fuel volumes growth to sustain over Q4 2022 and beyond. The
Company remains on track to open 60 to 80 new stations in 2022.
Domestically, Dubai market remains at the heart of the Company’s Smart Growth Strategy as it offers high
potential for the Company to gain market share. The Company opened six stations in the first nine months of
2022 with an additional pipeline of more than 10 stations already approved for further development. Focus
remains on high quality strategic locations in Dubai.
In Saudi Arabia, ADNOC Distribution has a fully operational team on the ground. Following the addition of 64
new stations in Saudi Arabia since the beginning of 2021, the Company is currently working on revitalization and
rebranding its network in the Kingdom.
In Egypt, ADNOC Distribution’s recent partnership with TotalEnergies to acquire a 50% stake in TotalEnergies
Marketing Egypt reaffirms our commitment to expanding business in attractive international growth markets.
Egypt’s fuel retail market is highly attractive with a potential for future growth. Due to its young and expanding
population, alongside a series of progressive economic reforms, Egypt has recorded positive GDP growth with
a strong outlook.
Through this transaction, ADNOC Distribution and TotalEnergies are expected to explore future growth
opportunities of TotalEnergies Marketing Egypt by unlocking value potential in fuel distribution, lubricants and
aviation businesses supported by economic growth and post-COVID recovery.
The transaction will give ADNOC Distribution access to profitable lubricants and commercial aviation businesses
in Egypt with further growth upside, and it is expected to be earnings accretive to ADNOC Distribution from the
first year post closing. The acquisition is expected to be completed in Q1 2023 pending satisfaction of certain
conditions, including customary regulatory approvals.
Beyond that, the Company is evaluating a number of potential inorganic growth opportunities in international
markets. ADNOC Distribution’s focus is to ensure capital is allocated efficiently towards growth in value-accretive
expansion that meets targeted rate of returns.
7 | P ageADNOC Classification: Public
Non-fuel business
After witnessing strong momentum in the convenience stores revitalization program over 2020-2021, with 150
convenience stores revitalized, the Company continues to invest in offering customers a modern and engaging
retail experience, in line with its ambitious non-fuel strategy. ADNOC Distribution will continue to progress on C-
stores refurbishment in the fourth quarter of 2022 and 2023, focusing on offering a modern environment,
improvement in category management, a better assortment of products, including fresh food and premium
coffee, bundle offers and digital channels to order and transact.
Cost efficiency
ADNOC Distribution aims to become one of the leading cost-efficient fuel retailers and remains on track to take
structural costs out and make its operations leaner and more efficient. The key drivers for further OPEX savings
include staff optimization, with the more efficient deployment of staffing levels for stations and convenience
stores, energy efficiency through smart technology, outsourcing of logistics, centralization of key functions, etc.
The Company has already met its target of like-for-like OPEX savings of between AED 367-550 million over
2019-2023 by achieving like-for-like OPEX savings of AED 378 million over 2019-2021. ADNOC Distribution
remains focused on achieving further operational excellence and expects to deliver like-for-like OPEX savings
of approximately AED 92 million over the period from 2022 to 2023.
CAPEX
The Company is committed to pursuing expansion plans in a disciplined manner to deliver on its Smart Growth
Strategy. It expects to invest approximately AED 918 million of CAPEX in 2022, to deliver on its growth plans.
However, continued improvement will be made to increase CAPEX efficiency, including the rolling out of less
capital intensive new station formats, such as ‘ADNOC On the go’. Our CAPEX guidance does not include any
potential M&A opportunities.
8 | P ageADNOC Classification: Public
Dividend Policy
The Company’s robust and continued growth has enabled a progressive dividend policy for the shareholders.
ADNOC Distribution remains confident in the delivery of its strategic commitments and sustainable returns for
its shareholders.
ADNOC Distribution’s dividend policy sets a dividend of:
- For 2022: a minimum of AED 2.57 billion (20.57 fils per share) cash dividend, offering an annual dividend
yield of 4.6% for 2022 (based on a share price of AED 4.47 as of 10th November 2022)
The Company paid a dividend of AED 1.285 billion (10.285 fils per share) for the first half of 2022 in
October 2022 and expects to pay a dividend of minimum AED 1.285 billion (10.285 fils per share) for the
second half of 2022 in April 2023, subject to the discretion of Company’s Board of Directors and to
shareholders’ approval
- For 2023 onwards: a dividend equal to at least 75% of distributable profits, subject to shareholders’
approval
The Company’s financial position remained strong at the end of September 2022 (cash & equivalent of AED 3.0
billion, retained earnings of AED 1.5 billion and Net debt to EBITDA of 0.68x at the end of September 2022).
In accordance with our approved dividend policy, we expect to continue to pay half of the annual dividend in
October of the relevant year and the second half to be paid in April of the following year. The payment of dividend
is subject to the discretion of ADNOC Distribution’s Board of Directors and to shareholders’ approval.
9 | P ageADNOC Classification: Public
Financial summary: strong financial results
AED millions Q3-22 Q2-22 QoQ % Q3-21(5) YoY % 9M 2022 9M 2021(5) YoY%
Revenue 8,551 8,637 -1.0% 5,398 58.4% 23,924 14,698 62.8%
Gross profit 1,277 1,717 -25.6%(4) 1,152 10.8% 4,443 3,591 23.7%
Margin 14.9% 19.9% 21.3% 18.6% 24.4%
EBITDA 868 1,113 -22.0% 737 17.8% 2,862 2,265 26.4%
Margin 10.2% 12.9% 13.6% 12.0% 15.4%
Underlying EBITDA1 802 898 -10.7% 617 30.0% 2,467 2,017 22.3%
Operating profit 817 939 -13.0% 580 40.8% 2,474 1,817 36.2%
Net profit 767 891 -14.0% 529 44.9% 2,329 1,681 38.5%
Margin 9.0% 10.3% 9.8% 9.7% 11.4%
Earnings per share
0.06 0.071 -14.0% 0.042 44.9% 0.186 0.134 38.5%
(AED/share)
Net cash generated from
570 350 62.8% -551 NM 2,986 2,241 33.2%
operating activities
Capital expenditures 331 217 52.4% 148 124.2% 744 409 82.1%
Free Cash Flow2 291 92 217.5% -720 NM 2,249 1,777 26.6%
Total equity 3,024 3,533 -14.4% 2,647 14.2% 3,024 2,647 14.2%
Net debt3 2,501 2,717 -7.9% 2,358 6.1% 2,501 2,358 6.1%
Capital employed 9,985 10,450 -4.4% 9,211 8.4% 9,985 9,211 8.4%
Return on capital
30.9% 27.3% 29.5% 30.9% 29.5%
employed (ROCE)
Return on equity (ROE) 95.9% 75.3% 95.7% 95.9% 95.7%
Net debt to EBITDA
0.68 0.77 0.71 0.68 0.71
ratio3
Leverage ratio3 45.3% 43.5% 47.1% 45.3% 47.1%
NM: Not meaningful
(1) Underlying EBITDA is defined as EBITDA excluding Inventory gains/losses and one-off gains/losses
(2) Free Cash Flow is defined as Net cash generated from operating activities less payments for purchase of property, plant & equipment
and advances to contractors
(3) Cash and bank balances used for Net Debt calculation includes term deposits with banks
(4) Change is partially due to reclassification of certain OPEX items to Costs of Goods Sold (COGS)
(5) For comparable purposes, prior year periods OPEX were reclassified (refer to page 6 for details)
Notes:
See the Glossary for the calculation of certain metrics referred to above
10 | P ageADNOC Classification: Public
Operating and Financial Review
Fuel Volumes
Q3 2022 total fuel volumes sold reached 2,322 Compared to Q2 2022, Q3 2022 total fuel volumes
million liters, increasing by 1.9% compared to Q3 declined by 4.1% due to a 10.0% decline in
2021. In Q3 2022, Retail fuel volumes sold declined Commercial fuel volumes which can be attributed to
by 1.9% year-on-year due to more residents reduced trading activity in the Corporate business
travelling outside of UAE during summer holidays and lower uptake from strategic aviation customers
compared to the same period of 2021 and higher in the Aviation segment.
pump prices. Q3 2022 Commercial fuel volumes
9M 2022 total fuel volumes sold reached 7,203
increased by 11.1% year-on-year driven by a strong
million liters, an increase of 6.5% year-on-year.
growth of 28.9% in corporate volumes, partially
Retail fuel volumes increased by 3.8% in 9M 2022,
offset by a reduction of 69.4% year-on-year in
while Commercial fuel volumes increased by 12.6%
Aviation volumes due to lower uptake from strategic
year-on-year, mainly driven by a 27.4% increase in
aviation customers.
Corporate volumes. This was partially offset by a
54.8% decline in Aviation volumes.
Fuel volumes by
Q3-22 Q2-22 QoQ % Q3-21 YoY % 9M 2022 9M 2021 YoY %
segment (million liters)
Retail (B2C) 1,583 1,601 -1.1% 1,614 -1.9% 4,839 4,664 3.8%
Commercial (B2B) 739 821 -10.0% 665 11.1% 2,364 2,098 12.6%
Of which Corporate 702 778 -9.7% 545 28.9% 2,193 1,721 27.4%
Of which Aviation 37 43 -15.2% 120 -69.4% 170 377 -54.8%
Total 2,322 2,422 -4.1% 2,279 1.9% 7,203 6,763 6.5%
Fuel volumes by
Q3-22 Q2-22 QoQ % Q3-21 YoY % 9M 2022 9M 2021 YoY %
product (million liters)
Gasoline (1) 1,451 1,476 -1.7% 1,459 -0.5% 4,453 4,235 5.2%
Diesel 668 725 -7.9% 553 20.8% 2,052 1,689 21.5%
Aviation products 37 43 -15.2% 120 -69.4% 170 377 -54.8%
Others (2) 166 177 -6.4% 147 13.1% 528 462 14.2%
Total 2,322 2,422 -4.1% 2,279 1.9% 7,203 6,763 6.5%
(1) Includes grade 91, 95 and 98 unleaded gasoline.
(2) Includes CNG, LPG, kerosene, lubricants and base oil.
Results
Q3 2022 revenue increased by 58.4% year-on-year Q3 2022 Underlying EBITDA (EBITDA excluding
to AED 8,551 million. The increase in revenue was inventory losses/gains and one-offs) increased by
driven by higher selling prices as a result of higher 30.0% year-on-year to AED 802 million, mainly
crude oil prices and growth in fuel volumes and driven by higher fuel volumes.
higher contribution of non-fuel business.
Q3 2022 Net profit increased by 44.9% year-on-year
Q3 2022 Gross profit increased by 10.8% year-on- to AED 767 million, driven by higher EBITDA and
year to AED 1,277 million, mainly driven by higher lower depreciation charges in Q3 2022, due to a
fuel volumes, growth in Non-Fuel Retail business as change in accounting estimates related to useful life
well as higher inventory gains of AED 88 million in of assets that was implemented in Q3 2022. The
in the fuel retail business in Q3 2022 versus change resulted in a reduction of AED 125 million in
inventory gains of AED 73 million in Q3 2021. depreciation for 9M 2022 with a full impact reflected
in Q3 2022.
Q3 2022 reported EBITDA increased by 17.8%
year-on-year to AED 868 million, mainly driven by
higher fuel volumes and inventory gains.
11 | P ageADNOC Classification: Public
9M 2022 Revenue increased by 62.8% year-on- 9M 2022 reported EBITDA increased by 26.4%
year to AED 23,925 million. The increase in revenue year-on-year to AED 2,862 million, mainly driven by
was driven by growth in fuel volumes, higher selling higher fuel volumes and inventory gains.
prices as a result of higher crude oil prices as well
as higher contribution of non-fuel business. 9M 2022 Underlying EBITDA (EBITDA excluding
inventory losses/gains and one-offs) increased by
9M 2022 Gross profit increased by 23.7% year-on-
22.3% year-on-year to AED 2,467 million, mainly
year to AED 4,443 million, mainly driven by higher
driven by higher fuel volumes.
fuel volumes, growth in Non-Fuel Retail business as
well as higher inventory gains of AED 488 million in 9M 2022 Net profit increased by 38.5% year-on-
9M 2022 versus inventory gains of AED 268 million year to AED 2,329 million, driven by higher EBITDA
in 9M 2021. and lower depreciation charges, as explained
above.
Revenue by segment
Q3-22 Q2-22 QoQ % Q3-21 YoY % 9M 2022 9M 2021 YoY %
(AED millions)
Retail (B2C) 5,843 5,718 2.2% 3,910 49.4% 16,162 10,380 55.7%
Of which Fuel Retail 5,560 5,447 2.1% 3,642 52.7% 15,324 9,577 60.0%
Of which Non-Fuel Retail(1) 282 271 4.3% 268 5.3% 838 804 4.3%
Commercial (B2B) 2,708 2,919 -7.2% 1,488 81.9% 7,763 4,318 79.8%
Of which Corporate 2,476 2,676 -7.5% 1,142 116.8% 6,972 3,329 109.4%
Of which Aviation 232 243 -4.8% 345 -33.0% 791 989 -20.0%
Total 8,551 8,637 -1.0% 5,398 58.4% 23,924 14,698 62.8%
Gross profit by segment
Q3-22 Q2-22 QoQ % Q3-21(4) YoY % 9M 2022 9M 2021(4) YoY %
(AED millions)
Retail (B2C) 1,015 1,250 -18.8%(3) 827 22.8% 3,304 2,584 27.9%
Of which Fuel Retail 852 1,094 -22.1%(3) 674 26.3% 2,827 2,144 31.8%
Of which Non-Fuel Retail(1) 163 156 4.8% 153 7.0% 478 440 8.7%
Commercial (B2B) 262 467 -43.9%(3) 325 -19.5% 1,138 1,007 13.0%
Of which Corporate 273 361 -24.3% 224 21.8% 925 713 29.8%
Of which Aviation -11 106 NM 101 NM 213 294 -27.6%
Total 1,277 1,717 -25.6%(3) 1,152 10.8% 4,443 3,591 23.7%
EBITDA by Segment
Q3-22 Q2-22 QoQ % Q3-21 YoY % 9M 2022 9M 2021 YoY %
(AED millions)
Retail (B2C) 623 777 -19.8% 484 28.6% 1,998 1,489 34.2%
Commercial (B2B) 244 336 -27.3% 253 -3.5% 862 780 10.6%
Of which Corporate 219 298 -26.5% 178 23.0% 748 569 31.5%
Of which Aviation 25 38 -33.6% 75 -66.4% 114 207 -45.1%
Unallocated(2) 1 1 -2.4% 0 NM 2 -4 NM
Total 868 1,113 -22.0% 737 17.8% 2,862 2,265 26.4%
NM: Not meaningful
(1) Non-fuel retail includes convenience stores, car wash, lube change, property management and vehicle inspection
(2) Unallocated includes other operating income/expenses not allocated to specific segment
(3) Change is partially due to reclassification of certain OPEX items to Costs of Goods Sold (COGS)
(4) For comparable purposes, prior year periods OPEX were reclassified (refer to page 6 for details)
12 | P ageADNOC Classification: Public
Distribution and administrative expenses
Q3 2022 distribution and administrative expenses 9M 2022 distribution and administrative expenses
were AED 483 million, a decrease of 16.8% were AED 1,999 million, an increase of 9.7%
compared to Q3 2021, mainly as a result of the compared to 9M 2021 after an increase in the
retrospective adjustments related to 9M 2022 that Company’s network and associated costs. The
were implemented in Q3 2022, after the increase was partially offset by a lower depreciation
reclassification of certain OPEX items into COGS charge as a result of the change in accounting
and the change in accounting estimate of useful life estimate of useful life of assets as well as the impact
of assets. of the OPEX reclassification implemented in Q3
2022.
Excluding depreciation, OPEX increased by 1.8% y-
o-y in Q3 2022 after an 18% year-on-year increase Excluding depreciation, OPEX increased by 17.3%
in the Company’s network and associated staff y-o-y in 9M 2022, in line with an 18% year-on-year
costs and other expenses, this was accompanied increase in the Company’s network and associated
with the retrospective adjustments related to 9M staff costs and other expenses.
2022 that were implemented in Q3 2022, related to
the reclassification of certain OPEX items into
COGS.
9M 9M
AED millions Q3-22 Q2-22 QoQ % Q3-21(3) YoY % YoY %
2022 2021(3)
Staff costs 302 405 -25.5%(2) 285 6.0% 1,100 950 15.7%
Depreciation 51 174 -70.5%(4) 157 -67.2%(4) 388 448 -13.4%(4)
Repairs, maintenance
41 39 5.3%(2) 32 25.3% 125 115 8.4%
and consumables
Distribution and
-7 24 NM(2) 10 NM 46 26 72.7%
marketing expenses
Utilities 33 68 -52.1% 50 -34.8% 141 143 -1.6%
Insurance 6 4 27.8% 3 95.7% 14 8 78.1%
Others1 59 69 -15.2% 44 33.8% 186 131 41.9%
Total 483 783 -38.3%(2)(4) 581 -16.8% 1,999 1,822 9.7%
NM: Not meaningful
(1) Others include lease cost, bank charges, consultancies etc.
(2) Change is partially due to reclassification of certain OPEX items to Costs of Goods Sold (COGS)
(3) For comparable purposes, prior year periods OPEX were reclassified (refer to page 6 for details)
(4) Change is partially due to a change in accounting estimate of useful life of assets (refer to page 6 for details)
13 | P ageADNOC Classification: Public
Capital expenditures
In Q3 2022, total CAPEX more than doubled
The Company’s capital expenditures (CAPEX) compared to Q3 2021 mainly driven by the higher
primarily consist of (i) investments related to the CAPEX on the development and construction of
development and construction of new service new service stations (c.75% of total CAPEX) as well
stations and fuel terminal projects and capitalized as due to higher machinery and equipment capital
maintenance costs related to our properties, (ii) the expenditures.
purchase of machinery and equipment, and (iii) In 9M 2022, total CAPEX increased by 82%
other capital expenditures related to our properties, compared the same period of last year, driven by
including structural upgrades, technology higher CAPEX on service stations, industrial
infrastructure upgrades and other improvements. projects and machinery and equipment.
The table below presents the breakdown of our
capital expenditures for the reviewed period:
AED millions Q3-22 Q2-22 QoQ % Q3-21 YoY % 9M 2022 9M 2021 YoY %
Service stations projects 242 154 56.9% 96 152.2% 523 286 82.9%
Industrial projects 27 26 6.8% 25 9.3% 90 53 67.7%
Machinery and
26 13 93.6% 6 342.5% 50 12 312.8%
equipment
Distribution fleet 6 0 NM 0 NM 10 0 NM
Technology infrastructure 25 17 44.0% 20 22.3% 58 55 5.3%
Office furniture and
5 7 -24.4% 1 NM 14 2 NM
equipment
Total 331 217 52.4% 148 124.2% 744 409 82.1%
NM: Not meaningful
14 | P ageADNOC Classification: Public
Business segments operating review
Retail Segment – B2C (Fuel and Non-Fuel)
Volumes
Q3 2022 retail fuel volumes sold declined by 1.9% 9M 2022 retail fuel volumes sold increased by 3.8%
y-o-y, as a result of high pump prices that y-o-y as a result of the country’s ongoing economic
temporarily impacted the consumer demand for growth. In addition, the Company continued to
retail fuel in the period. Q3 2022 also saw more expand in Saudi Arabia and Dubai by adding new
residents travelling outside of UAE during summer stations, resulting in incremental fuel volumes in 9M
holidays compared to Q3 2021, which had been 2022 compared to the same period of 2021.
negatively impacted by COVID-19 travel
restrictions.
Retail Segment volumes
Q3-22 Q2-22 QoQ % Q3-21 YoY % 9M 2022 9M 2021 YoY %
(million liters)
Gasoline 1,385 1,411 -1.8% 1,440 -3.8% 4,257 4,158 2.4%
Diesel 147 140 5.1% 133 10.7% 435 381 14.2%
Other (1) 50 50 1.7% 41 24.3% 147 125 17.4%
Total 1,583 1,601 -1.1% 1,614 -1.9% 4,839 4,664 3.8%
(1) Includes CNG, LPG, kerosene and lubricants.
Results
Q3 2022 retail segment revenue increased by 9M 2022 retail segment revenue increased by
49.4% compared to Q3 2021, driven by an increase 55.7% compared to 9M 2021, driven by an increase
in pump prices and non-fuel retail revenue, partially in pump prices and, fuel volumes growth and
offset by lower retail fuel volumes. increase in non-fuel revenues.
Q3 2022 retail segment Gross profit increased by 9M 2022 retail segment Gross profit increased by
22.8% compared to Q3 2021, driven by higher 27.9% compared to 9M 2021, driven by higher retail
inventory gains in the retail fuel business and non- fuel volumes, inventory gains and non-fuel business
fuel business growth. The Fuel retail business growth. The Fuel retail business Gross profit
Gross profit increased by 26.3% year-on-year, increased by 31.8% year-on-year, mainly driven by
mainly driven by inventory gains of AED 88 million higher fuel volumes and inventory gains of AED 488
in Q3 2022 (versus inventory gains of AED 73 million in 9M 2022 (versus inventory gains of AED
million in Q3 2021). Non-fuel retail Gross profit rose 268 million in 9M 2021). Non-fuel retail Gross profit
by 7.0% in Q3 2022 compared to Q3 2021, driven rose by 8.7% in 9M 2022 compared to 9M 2021,
by growth in non-fuel transactions, higher driven by growth in non-fuel transactions, higher
conversion rate, more convenience stores, number of convenience stores, improvement in
improvement in margins and enhanced customer margins and improved customer offerings.
offerings.
9M 2022 retail segment EBITDA increased by
Q3 2022 retail segment EBITDA increased by 34.2% compared to 9M 2021, mainly driven by
28.6% compared to Q3 2021, mainly driven by higher retail fuel volumes, inventory gains and
higher inventory gains and growth in non-fuel growth in non-fuel business.
business, partially offset by lower retail fuel
volumes.
15 | P ageADNOC Classification: Public
Retail Segment 9M 9M
Q3-22 Q2-22 QoQ % Q3-21(3) YoY % YoY %
(AED million) 2022 2021(3)
Revenue 5,843 5,718 2.2% 3,910 49.4% 16,162 10,380 55.7%
Of which Fuel Retail 5,560 5,447 2.1% 3,642 52.7% 15,324 9,577 60.0%
Of which Non-Fuel Retail(1) 282 271 4.3% 268 5.3% 838 804 4.3%
Gross profit 1,015 1,250 -18.8%(2) 827 22.8% 3,304 2,584 27.9%
Of which Fuel Retail 852 1,094 -22.1%(2) 674 26.3% 2,827 2,144 31.8%
Of which Non-Fuel Retail(1) 163 156 4.8% 153 7.0% 478 440 8.7%
EBITDA 623 777 -19.8% 484 28.6% 1,998 1,489 34.2%
Operating profit 578 618 -6.4% 342 68.8% 1,646 1,087 51.5%
Capital expenditures 212 141 50.1% 122 73.4% 430 331 30.2%
(1) Non-fuel retail includes convenience stores, car wash, lube change, property management and vehicle inspection
(2) Change is partially due to reclassification of certain OPEX items to Costs of Goods Sold (COGS)
(3) For comparable purposes, prior year periods OPEX were reclassified (refer to page 6 for details)
Other operating metrics
Q3 2022 and 9M 2022 fuel transactions increased as a result of the country’s ongoing economic
by 7.9% and 14.4%, respectively, compared to the growth and further ease in mobility and global travel
same periods of 2021 on the back of network restrictions.
expansion, improving customer sentiment, as well
Fuel operating metrics Q3-22 Q2-22 QoQ % Q3-21 YoY % 9M 2022 9M 2021 YoY %
Number of service stations - UAE (1) 481 472 1.9% 459 4.8% 481* 459 4.8%
Number of service stations - Saudi
66 66 NM 5 NM 66 5 NM
Arabia (1) (2)
Total number of service stations 547 538 1.7% 464 17.9% 547 464 17.9%
Total Throughput per station (million
2.9 3.0 -2.8% 3.5 -16.8% 8.8 10.1 -12.0%
liters)
Number of fuel transactions
44.5 45.3 -1.7% 41.2 7.9% 132.5 115.8 14.4%
(millions) - UAE
NM: Not meaningful
(1) At end of period.
(2) Includes one franchised site
* Two old station were closed during 9M 2022
Q3 2022 and 9M 2022 Non-fuel transactions revitalization of our stores, marketing and promotion
increased by 17.0% and 17.6%, respectively year- campaigns as well as the higher F&B sales.
on-year driven by improving consumer sentiment,
increase in number of convenience stores, enhanced Average gross basket size declined by 5.4% year-
customer offerings following the revitalization of our on-year in Q3 2022 and by 5.0% year-on-year in 9M
stores and marketing and promotion campaigns 2022 after a double digit year-on-year rise during the
under ADNOC Rewards loyalty program to attract peak of COVID-19 pandemic as customers visited
higher footfall and increase customer spending. less during pandemic restrictions but bought more
during each visit. However, average gross basket
The convenience stores revenues increased by
size is still above pre-pandemic levels, driven by
6.4% in Q3 2022 compared to Q3 2021, and by 9.8%
customer centric initiatives.
in 9M 2022 compared to 9M 2021, mainly driven by
higher transactions compared to the same periods of
last year. Q3 2022 and 9M 2022 convenience stores
Gross profit increased by 14.9% and 17.3%,
respectively year-on-year driven by higher
transactions and improvement in margins. The
convenience stores business margins improved as a
result of enhanced customer offerings following
16 | P ageADNOC Classification: Public
In its property management business, the Company The number of vehicles inspected (fresh tests) in the
continues to transition its tenancy business to a Company’s vehicle inspection centers increased by
revenue sharing model to maximize revenue and 4.2% in Q3 2022 compared to Q3 2021, and by 5.1%
profitability. The number of occupied properties in 9M 2022 compared to 9M 2021, driven by a higher
increased by 8.4% year-on-year in both Q3 2022 and
number of vehicle inspection centers.
9M 2022 driven by proactive non-fuel growth
strategy to bring in new tenants.
Non-Fuel operating metrics Q3-22 Q2-22 QoQ % Q3-21 YoY % 9M 2022 9M 2021 YoY %
Total number of non-fuel transactions
9.9 9.4 4.9% 8.4 17.0% 28.8 24.5 17.6%
(millions) – UAE (2)
Number of convenience stores - UAE (1) 366 359 1.9% 342 7.0% 366 342 7.0%
Convenience stores revenue
180 169 6.5% 169 6.4% 529 481 9.8%
(AED million)
Convenience stores Gross profit
65 58 12.1% 57 14.9% 183 156 17.3%
(AED million)
Margin 36.4% 34.6% 33.7% 34.6% 32.4%
Conversion rate % (3) 18% 17% 17% 18% 18%
Average basket size (AED) (4) 21.6 21.6 0.1% 23.6 -8.7% 21.9 23.6 -7.2%
Average gross basket size (AED)(5) 24.9 24.9 -0.2% 26.3 -5.4% 25.4 26.7 -5.0%
Number of Property Management tenants (1) 317 330 -3.9% 297 6.7% 317 297 6.7%
Number of occupied properties for rent (1) 1,003 999 0.4% 925 8.4% 1,003 925 8.4%
Number of vehicle inspection centers (1) (6) 32 31 3.2% 29 10.3% 32 29 10.3%
Number of vehicles inspected (fresh tests)
208 202 3.0% 199 4.2% 633 602 5.1%
(thousands)
Other vehicle inspection transactions
69 67 3.6% 67 3.3% 221 204 8.1%
(thousands)(7)
(1) At end of period.
(2) Includes convenience stores, car wash and oil change transactions.
(3) Number of convenience stores transactions divided by number of fuel transactions.
(4) Average basket size is calculated as convenience store revenue divided by number of convenience store transactions
(5) Average gross basket size is calculated as convenience store revenue (including revenue from consignment items shown under other
operating income) divided by number of convenience store transactions.
(6) Includes one permitting center.
(7) Other vehicle inspection transactions include number of vehicles inspected (re-tests) and sale of safety items at our vehicles inspection
centers
17 | P ageADNOC Classification: Public
Commercial Segment – B2B (Corporate and Aviation)
Volumes
Q3 2022 Commercial fuel volumes increased by 9M 2022 Commercial fuel volumes increased by
11.1% compared to Q3 2021, driven by a 28.9% 12.6% year-on-year, driven by Corporate business.
year-on-year increase in the Corporate volumes. Corporate fuel volumes increased by 27.4% year-
The higher Corporate volumes were partially offset on-year, partially driven by the new sales
by a significant decline in the Aviation fuel volumes agreements confirmed in the Q4 2021. On the other
sold to strategic customers. hand, Aviation fuel volumes sold to strategic
customers decreased by 54.8% year-on-year.
Commercial Segment
Q3-22 Q2-22 QoQ % Q3-21 YoY % 9M 2022 9M 2021 YoY %
volumes (million liters)
Gasoline 66 66 1.2% 19 254.9% 196 77 154.6%
Diesel 520 584 -11.0% 420 24.0% 1,617 1,308 23.6%
Aviation 37 43 -15.2% 120 -69.4% 170 377 -54.8%
Other (1) 115 128 -9.6% 106 8.8% 381 337 13.1%
Total 739 821 -10.0% 665 11.1% 2,364 2,098 12.6%
(1) Includes LPG, lubricants and base oil.
Results
Q3 2022 Commercial segment revenue increased Q3 2022 Commercial segment EBITDA declined by
by 81.9% compared to Q3 2021, mainly driven by 3.5% year-on-year, due to lower aviation volumes,
Corporate business revenue which more than which was not fully offset by the higher Corporate
doubled in Q3 2022 on the back of higher selling volumes.
prices as a result of increase in crude oil prices and
9M 2022 Commercial segment revenue increased
growth in Corporate fuel volumes. This was partially
by 79.8% compared to 9M 2022, mainly driven by
offset by a decline in Aviation revenues due to lower
higher Corporate business revenue, partially offset
Aviation volumes.
by a decline in Aviation revenues due to lower
Q3 2022 Commercial segment Gross profit declined aviation volumes.
by 19.5% compared to Q3 2021 as a result of a
9M 2022 Commercial segment Gross profit
significant decline in the Aviation business fuel
increased by 13.0% compared to 9M 2021 driven by
volumes sold to strategic customers. In addition,
higher Corporate fuel volumes, partially offset by
there was a one-off charge relating to
lower Aviation volumes and Gross profit.
reclassification of the Aviation business OPEX to
COGS from 1 January 2022 of AED 115 million 9M 2022 Commercial segment EBITDA increased
which was fully accounted for in Q3 2022. Excluding by 10.6% year-on-year, driven by higher Corporate
the impact of this reclassification, Q3 2022 Aviation volumes, partially offset by lower aviation volumes.
business Gross profit would amount to AED 104
million.
Commercial Segment
Q3-22 Q2-22 QoQ % Q3-21 YoY % 9M 2022 9M 2021 YoY %
(AED million)
Revenue 2,708 2,919 -7.2% 1,488 81.9% 7,763 4,318 79.8%
Of which Corporate 2,476 2,676 -7.5% 1,142 116.8% 6,972 3,329 109.4%
Of which Aviation 232 243 -4.8% 345 -33.0% 791 989 -20.0%
Gross profit 262 467 -43.9%(1) 325(2) -19.5% 1,138 1,007(2) 13.0%
Of which Corporate 273 361 -24.3% 224 21.8% 925 713 29.8%
Of which Aviation -11 106 NM(1) 101(2) NM 213 294(2) -27.6%
EBITDA 244 336 -27.3% 253 -3.5% 862 780 10.6%
Operating profit 238 321 -25.8% 238 -0.1% 826 734 12.6%
Capital expenditures 1 0 NM 4 -75.6% 4 22 -80.7%
NM: Not meaningful
(1) Change is partially due to reclassification of certain OPEX items to Costs of Goods Sold (COGS)
(2) For comparable purposes, prior year periods OPEX were reclassified (refer to page 6 for details)
18 | P ageADNOC Classification: Public
Share trading and ownership
Our shares are traded on the Abu Dhabi Securities traded daily in 9M 2022 (0.6x 2021 level). In 9M
Exchange (ADX) under the symbol ADNOCDIST. 2022, the average daily traded value of our shares
The closing share price as of 30 September 2022 was approximately AED 55 million (0.7x 2021 level).
was AED 4.44. In the period from 1 January 2022
through 30 September 2022, the share price ranged As of 30 September 2022, ADNOC owned 77%,
between AED 3.95 and AED 4.85 at close. Our while 23% of our outstanding shares were publicly
market capitalization was AED 55.5 billion as of 30 owned by institutional and retail investors.
September 2022. An average of 13 million shares
Potential risks
Key risks potentially affecting ADNOC Distribution’s exposure to these risks. For more detailed
financial and operational results include supply information on risks and risk management, please
chain risks, asset integrity and information refer to the Risk Factors section of the international
technology risks. The Company has identified and offering memorandum dated 26 November 2017
implemented several key controls and mitigation relating to our IPO, which is available on our website
strategies to ensure business continuity, including at www.adnocdistribution.ae.
engineered controls and managed controls as well
as contractual safeguards to limit its financial
19 | P ageADNOC Classification: Public
Q3 2022 Earnings conference call details
A conference call in English for investors and analysts will be held on Friday, November 11, 2022, at 5 p.m. UAE
/ 1 p.m. London / 8 a.m. New York. To access the management presentation, followed by a Q&A session, please
connect through one of the following methods:
Webcast
Click here to join the webcast
Please note that participants joining by webcast will be able to ask questions via a chat box within the webcast
player
Note: Click on the link above to attend the presentation from your laptop, tablet or mobile device. Audio will
stream through your selected device. If you have technical difficulties, please click the “Listen by Phone” button
on the webcast player and dial one of the numbers provided therein.
Audio Call Dial in Details:
UAE (Toll Free): 8000 3570 2606
KSA (Toll Free): 800 844 5726
UK (Toll Free): 0800 358 6374
US (Toll Free): 800-289-0462
Passcode: 126940
For other countries, please connect to the above webcast link, select the “Listen by Phone” option on the webcast
player and click on the audio numbers to access the dial in information
The presentation materials will be available for download in English on Friday, November 11, 2022 at
https://www.adnocdistribution.ae/en/investor-relations/investor-relations/downloads/
Reporting date for the Fourth quarter 2022
We expect to announce our fourth quarter and full year 2022 results on or around February 10, 2022.
Contacts
Investor Relations
Tel.: +971 2 695 9770
Email: ir@adnocdistribution.ae
Athmane Benzerroug
Chief Investor Relations Officer
Email: athmane.benzerroug@adnocdistribution.ae
November 11, 2022
ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION PJSC
20 | P ageADNOC Classification: Public
Glossary
Net debt is calculated as total interest bearing debt less cash and bank balances (including term deposits
with banks).
Free cash flow is calculated as Net cash generated from operating activities less payments for purchase
of property, plant & equipment and advances to contractors.
Capital employed is calculated as the sum of total assets minus non-interest bearing current liabilities.
Return on capital employed is calculated as operating profit for the twelve months ended divided by
capital employed on the last day of the period presented.
Return on equity is calculated as profit for the period for the twelve months ended divided by total equity
on the last day of the period presented.
Net debt to EBITDA ratio is calculated interest bearing net debt as of the end of the period presented,
divided by EBITDA for the twelve months ended on the last day of the period presented.
Leverage ratio is calculated as (a) interest bearing net debt, divided by (b) the sum of interest bearing
net debt plus total equity.
Average basket size is calculated as convenience store revenue divided by number of convenience
store transactions
Average gross basket size is calculated as total convenience store sales revenue (including revenue
from consignment items shown under other operating income) divided by number of convenience store
transactions.
21 | P ageADNOC Classification: Public
Cautionary Statement Regarding Forward-Looking Statements
This communication includes forward-looking statements which relate to, among other things, our plans,
objectives, goals, strategies, future operational performance and anticipated developments in markets in which
operate and in which we may operate in the future. These forward-looking statements involve known and
unknown risks and uncertainties, many of which are beyond our control and all of which are based on
management’s current beliefs and expectations about future events. Forward-looking statements are sometimes
identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “will”, “could”, “should”,
“would”, “intends”, “estimates”, “plans”, “targets”, or “anticipates” or the negative thereof, or other comparable
terminology. These forward-looking statements and other statements contained in this communication regarding
matters that are not historical facts involve predictions and are based on the beliefs of our management, as well
as the assumptions made by, and information currently available to, our management. Although we believe that
the expectations reflected in such forward looking statements are reasonable at this time, we cannot assure you
that such expectations will prove to be correct. Given these uncertainties, you are cautioned not to place undue
reliance on such forward looking statements. Important factors that could cause actual results to differ materially
from our expectations include, but are not limited to: our reliance on ADNOC to supply us with substantially all
of the fuel products that we sell; an interruption in the supply of fuels to us by ADNOC; changes in the prices
that we pay ADNOC for our fuels and to the prices that we are allowed to charge our retail customers in the
UAE; failure to successfully implement our operating initiatives and growth plans, including our mixed-mode
service offering, our convenience store optimization initiatives, our cost savings initiatives, and our growth plans;
competition in our markets; decrease in demand for the fuels we sell, including due to general economic
conditions, improvements in fuel efficiency and increased consumer preference for alternative fuels; the dangers
inherent in the storage and transportation of the products we sell; our reliance on information technology to
manage our business; laws and regulations pertaining to environmental protection, operational safety, and
product quality; the extent of our related party transactions with ADNOC and our reliance on ADNOC to operate
our business; the introduction of VAT and other new taxes in the UAE; failure to successfully implement new
policies, practices, systems and controls that we implemented in connection with or following our IPO; any
inadequacy of our insurance to cover losses that we may suffer; general economic, financial and political
conditions in Abu Dhabi and elsewhere in the UAE; instability and unrest in regions in which we operate; the
introduction of new laws and regulations in Abu Dhabi and the UAE; and other risks and uncertainties detailed
in our International Offering Memorandum dated 26 November 2017 relating to our initial public offering and the
listing of our shares on the Abu Dhabi Securities Exchange, and from time to time in our other investor
communications. Except as expressly required by law, we disclaim any intent or obligation to update or revise
these forward-looking statements.
22 | P age | positive |
Press Release
Drake & Scull International Announces Q2 2023 Financial Results
Dubai, UAE, 14 August 2023: Drake & Scull International PJSC (DSI), a regional
market leader in integrated design, engineering, and development in the (MEP),
Water and Power and Oil and Gas sectors released today its reviewed financial
results for the Q2 ended 30 June 2023 reporting a Gross Profit of AED 5 million
compared to AED 1 million for the same period in 2022.
• Revenue achieved was AED 45 million compared to the same amount during the same
period in 2022.
• Loss from continued operations was AED 163 million compared to a loss of AED 90
million during the same period in 2022.
• Reduction in general and administrative expenses to AED 16 million compared to
AED 23 million during the same period in 2022, equivalent to 30%.
• Accumulated Losses increased to AED 5,261 million compared to accumulated losses
of AED 5,098 million as at 31 December 2022.
• Total Negative Equity increased to AED 4,226 million compared to total negative
equity of AED 4,083 million as at 31 December 2022.
• The major reasons behind the loss are the net financing cost and commercial cases
that will be adjusted upon successful completion of the restructuring process.
DSI order backlog is AED 410 million driven by ongoing operations in the UAE and
overseas countries.Commenting on the announcement, Eng. Shafiq Abdelhamid, Chairman of DSI PJSC, said
“According to what was announced on 8 August 2023, and where the Court of Appeal had
previously decided to open restructuring procedures for the company in accordance with the
bankruptcy law without taking into consideration the circumstances of the emergency financial
crisis, the company submitted a cassation against the issued decision, hence, the company is
anticipating the ruling of the Court of Cassation on 22 August 2023 in fairness to the company by
accepting the opening of procedures in accordance with the emergency financial crisis, and as a
result, the adoption of the procedures previously completed by the Financial Reorganization
Committee.
Once the procedures for the application submitted to the court are completed, the rest of the
procedures agreed upon in the plan will be completed including raising the company's capital and
submitting a request to return the company's shares to trade in the Dubai Financial Market.
We highlight that the company has filed several civil, criminal, and commercial lawsuits including
claims equivalent to AED 10,314,086,262.00 (ten billion three hundred fourteen million eighty six
thousands two hundred sixty two Emirati Dirhams). These encompass civil cases filed against the
former management and other advisory firms equivalent to AED 9,303,699,903 (nine billion three
hundred three million six hundred ninety nine thousand nine hundred three Emirati Dirhams) in
addition to other commercial lawsuits equivalent to AED 1,010,386,359 (one billion ten million
three hundred eighty six thousand three hundred fifty nine Emirati Dirhams).
In addition, the company filed criminal cases before public prosecution – Abu Dhabi and the expert
reports approved by Abu Dhabi public prosecution were in favor of the company. The expert
reports transferred to the public prosecution – Dubai and still under consideration by them before
transferring the file to the competent court. The value in the experts report were AED
2,338,183,120.00 (two billion three hundred thirty eight million one hundred eighty three thousand
one hundred twenty Emirati Dirhams).
We are grateful for the patience of our shareholders as we seek to restructure the company, thereby
protecting as far as possible their investments and will continue to make all possible efforts to
ensure that DSI PJSC shares will resume trading on the Dubai Financial Market after the
completion of the restructuring”.
-Ends-About Drake & Scull International PJSC
Drake & Scull International PJSC (DSI) is a regional market leader in world-class Integrated Design,
Engineering, and Construction projects. DSI‘s main business streams include Engineering (MEP),
Construction, District cooling plants, Oil & Gas, and Water & Wastewater Treatment plants. The company
operates across the GCC & rest of the Middle East as well as Europe. DSI has completed more than 700
projects around the world in the Residential and mixed-use real estate, Aviation, Power plants, District
cooling plants, Hospitality, Healthcare, Renewable energy, Data center, Petrochemical, Rail, Commercial,
Government, Leisure and Infrastructure sectors. | positive |
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RAK PROPERTIES.
DIRECTORS REPORT FOR 3 MONTH PERIOD ENDED 31 MARCH 2023
On behalf of the Board of Directors of RAK Properties PJSC, am pleased to present the
I
consolidated financial results of the company for first quarter 2023.
Q1 2023 Key Financial Highlights:
Revenue for the period amounted to AED 258.58 million vs AED 107.25 million for the same
period last year.
Net Profit for the period amounted to AED 44.60 million vs AED 30.48 million for the same
period last year.
Total comprehensive income for the period amounted to AED 44.60 million vs AED 30.92
million for the same period last year.
Total Asset stood by AED 6.34 billion in Q1 2023 vs AED 6.32 billion in December 2022.
Total Equity stood by AED 4.16 billion in Q1 2023 vs AED 4.12 billion in December 2022
Income Statement AED Million
31st Mar 2023 31St Mar 2022
Revenue 258.58 107.25
Cost of Revenue (175.68) (74.46)
Gross Profit 82.90 32.79
Operating Profit 55.89 34.42
Profit for the period 44.60 30.48
Total comprehensive income 44.60 30.92
Financial Position AED Million
31st Mar 2023 31st Dec 2022
Non -Current Assets 5,301.79 5,285.17
Current Assets 1,035.33 1,029.90
Total Assets 6,337.12 6,315.07
Non -Current Liabilities 1,247.00 1,218.25
Current Liabilities 923.44 974.65
Capital and Reserves 4,166.68 4,122.17
Total Equity & Liabilities 6,337.12 6,315.07
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RAK PROPERTIES.
DIRECTORS REPORT FOR 3 MONTH PERIOD ENDED 31 MARCH 2023
On behalf of the Board of Directors of RAK Properties PJSC, am pleased to present the
I
consolidated financial results of the company for first quarter 2023.
Q1 2023 Key Financial Highlights:
Revenue for the period amounted to AED 258.58 million vs AED 107.25 million for the same
period last year.
Net Profit for the period amounted to AED 44.60 million vs AED 30.48 million for the same
period last year.
Total comprehensive income for the period amounted to AED 44.60 million vs AED 30.92
million for the same period last year.
Total Asset stood by AED 6.34 billion in Q1 2023 vs AED 6.32 billion in December 2022.
Total Equity stood by AED 4.16 billion in Q1 2023 vs AED 4.12 billion in December 2022
Income Statement AED Million
31st Mar 2023 31St Mar 2022
Revenue 258.58 107.25
Cost of Revenue (175.68) (74.46)
Gross Profit 82.90 32.79
Operating Profit 55.89 34.42
Profit for the period 44.60 30.48
Total comprehensive income 44.60 30.92
Financial Position AED Million
31st Mar 2023 31st Dec 2022
Non -Current Assets 5,301.79 5,285.17
Current Assets 1,035.33 1,029.90
Total Assets 6,337.12 6,315.07
Non -Current Liabilities 1,247.00 1,218.25
Current Liabilities 923.44 974.65
Capital and Reserves 4,166.68 4,122.17
Total Equity & Liabilities 6,337.12 6,315.07
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CIALis/J1 eua II (pi )
RAK PROPERTIES.
2. Anantara Mina Al Arab Hotel and Resort, Ras Al Khaimah
Construction of our second 5 -star hotel with 174 keys is on -track to open this year.
Planned Residential:
-
1. Bay Area Apartments, Hayat Island, Mina Al Arab, Ras Al Khaimah Beachfront residential
buildings of 6 plots.
a) Development of the first 2 plots is under design stage and the remaining 4 plots are
scheduled towards the end of 2023.
We have delivered a solid revenue number and made good progress with our residential
development deliveries. Our 5 Star hospitality assets add significant value to revenue streams,
strengthen the balance sheet and drive the appeal of Mina Al Arab as a lifestyle destination in Ras
Al Khaimah
4.............,...
Sameh Al uhtadi
Chief Executive Officer
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+971 7 227 2444:,p_60 . +971 7 228 4777: La .ro.d.ri o i II Lai 31113:y.,p
P.O. BOX 31113, Ras Al Khaimah, U.A.E. I Tel: +971 7 228 4777 I Fax :+971 7 227 2444 I www.rakproperties.ae
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CIALis/J1 eua II (pi )
RAK PROPERTIES.
2. Anantara Mina Al Arab Hotel and Resort, Ras Al Khaimah
Construction of our second 5 -star hotel with 174 keys is on -track to open this year.
Planned Residential:
-
1. Bay Area Apartments, Hayat Island, Mina Al Arab, Ras Al Khaimah Beachfront residential
buildings of 6 plots.
a) Development of the first 2 plots is under design stage and the remaining 4 plots are
scheduled towards the end of 2023.
We have delivered a solid revenue number and made good progress with our residential
development deliveries. Our 5 Star hospitality assets add significant value to revenue streams,
strengthen the balance sheet and drive the appeal of Mina Al Arab as a lifestyle destination in Ras
Al Khaimah
Sameh Al uhtadi
Chief Executive Officer
a)
ao
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c:4L--04.il +971 7 227 2444:,p_60 . +971 7 228 4777: La To.t.l.ri 00 31113:y.,p b5i W1031 601.1. ) -M UT
THE EMIRATES P.O. BOX 31113, Ras Al Khaimah, U.A.E. I Tel: +971 7 228 4777 I Fax :+971 7 227 2444 I www.rakproperties.ae OWE= =WM 121001 | neutral |
PRESS RELEASE
ESHRAQ INVESTMENTS ANNOUNCES Q3 RESULTS WITH
PROGRESS ON PORTFOLIO OPTIMIZATION
• Room revenue from commercial real estate operations increased c.5% YoY in Q3 2023
• Marina Rise apartments occupancy rate reaches record average of 94% in Q3 2023
• Total Goldilocks Fund net investment value of AED 1.75 billion in Q3 2023
• Total liabilities reduced by over 30% YoY, driven by a reduction in bank borrowings
• Re-composition of Board with appointment of new Chairman and directors to guide future
strategic direction
• Share buyback, approved by Board, aims to create value for shareholders and underpins
Eshraq’s confidence in long-term growth
Abu Dhabi, UAE, 10 November 2023: Eshraq Investments PJSC ("Eshraq" or "Company"), listed on the
Abu Dhabi Securities Exchange ("ADX"), has announced its financial results for the three-month period
ended 30 September 2023.
Eshraq’s performance in Q3 2023 was characterised by progress on portfolio optimization, despite weaker
financial performance driven by the change in the value of the Goldilocks Fund and higher net finance costs
given the interest rate environment. Total operating income declined by 117.4% on a year-on-year basis,
from AED 476.90 million in Q3 2022 to an Operating Loss of AED 83.15 million in Q3 2023. Net profit also
declined compared to the prior year, from AED 474.19 million in Q3 2022 to a net loss of AED 83.34 million
in Q3 2023, down 117.6% year-on-year. Eshraq’s total liabilities reduced by 34% year-to-date as the group
continues to deleverage its balance sheet, mainly driven by reduced borrowings.
The Company’s Goldilocks Fund performance was impacted by current market dynamics and volatility
during the period, with some mark-to-market losses resulting from the weak performance of certain key
holdings. As such, total underlying net investment value stood at AED 1.75 billion in Q3 2023, having
reached AED 1.84 billion in H1 2023. Goldilocks expects to improve its performance in future periods given
the growing maturity of underlying investments across asset classes, along with continued diversification
of its portfolio towards high-growth sectors.
Mr. Mohamed Al Hashimi, Eshraq's Chief Executive Officer, commented: “We used this quarter to
continue to optimize our portfolio to focus on developing non-income generating assets and pursuing
profitable investments that will deliver greater value to our shareholders. We expect improving future
performance for the Goldilocks Fund as its underlying investments mature and diversify. Our planned share
buyback program is a clear testament to our confidence in Eshraq’s long-term growth outlook, and our
commitment to creating value for shareholders, while capitalizing on our very strong balance sheet position.
We are also delighted to welcome Fahad Al Qassim as the new Chairman of Eshraq Investments, along
with Mr. Jacques Fakhoury as a new Board Member, both of whom bring significant portfolio management
and investment experience across a range of sectors and will play an important role in guiding our future
growth strategy, which we expect to unveil early next year.”
Page 1 of 3Strengthening the investor proposition through portfolio optimization
Healthy occupancy across real estate assets
Eshraq’s commercial operations generated AED 6.9 million of revenue in Q3 2023, supported by a c.5%
year-on-year increase in room revenue, driven by an improvement in occupancy rates across prime real
estate assets versus the same period in the prior year, with gross profit reaching AED 3.9 million in the
quarter.
Eshraq’s residential apartments in Marina Rise registered record occupancy rates in Q3 2023, reaching
average occupancy of 94% for the 9-month period, a reflection of the assets’ premium standing in the
market.
Eshraq continues to optimise its real estate portfolio. The third quarter saw the sale of Dubai’s Nuran Marina
Hotel for AED 133 million in cash, a 45% premium to its book value, as announced on 24 October 2023.
This followed the sale of 58 units of Burj Daman in Q2 2023, for a total cash consideration of AED 162
million.
Progress on land monetization
On a year-to-date basis, Eshraq has sold seven land plots, representing 43.6% of its existing land bank by
book value for a total sale consideration of AED 208 million. The Company will continue to progress its land
monetization program to develop its non-revenue generating assets through the sale or engagement of
partners to develop the land bank. Eshraq will continue to explore such opportunities, to generate capital
for re-investment in assets offering more attractive returns.
Goldilocks Fund net investment value of AED 1.75 billion in Q3 2023
The Fund’s net performance of 59% over a three-year period has significantly outperformed its regional
and international benchmarks and is broadly in line with the local benchmark, supported by its holdings in
international and domestic blue-chip companies operating across sectors including Oil & Gas, Shipping,
Insurance, Real Estate, Financial Services and Education. The Fund’s underlying net investment value in
the third quarter was negatively impacted by the weak performance of certain individual equities, including
Takaful Emarat and Dana Gas, which it is exposed to.
Goldilocks was acquired in 2022 to spearhead Eshraq’s diversification efforts to become a multi-asset class
investment business, with allocation across multiple sectors to offer highly competitive long-term returns
and improved resilience to market volatility. The Fund is focused on generating superior and consistent
returns via direct investment in undervalued and intrinsically mispriced assets, mostly in the Middle East,
and management expects to see improved performance in future periods given the growing maturity of its
investments and diversification towards high-growth sectors.
Page 2 of 3Other key areas of progress
Board re-composition and appointments
On 31 October 2023, Eshraq held its General Assembly Meeting (“GAM”) during which shareholders voted
on amendments to the size and structure of the Board of Directors. The GAM approved the reduction of the
size of the Board of Directors from seven to five members. The revised Board structure, now comprising
four Independent Directors out of five, is fully compliant with SCA guidelines and will continue to be highly
supportive of minority shareholder interests.
Eshraq also announced the appointment of Mr. Fahad Al Qassim as Chairman of the Board of Directors.
Mr. Al Qassim adds significant value to Eshraq through his deep sector experience in Portfolio Management
and Investment Banking. He is currently Chief Executive Officer of Healthcare and Life Sciences at ADQ
and Acting Director General at the UAE Endowments’ and Minors’ Funds Authority. His vision, experience
and leadership will set an exciting path for Eshraq's future growth and value creation.
Shareholders participating in the GAM also elected Mr. Jacques E. Fakhoury to the Board, who brings with
him valuable expertise from a diverse range of industries including corporate governance, regulatory affairs,
and compliance.
Share buyback program
Eshraq continues to demonstrate its commitment to delivering and enhancing shareholder value with its
intention to start a new share buyback program. The Company completed its previous share buyback
program on 18 August 2023, having repurchased a total of c.130 million shares, with an aggregate value
of AED 71.16million from October 2018 to June 2023, generating total book value gain for shareholders of
AED 53.01 million.
In the current environment, Eshraq continues to see a further opportunity to return excess cash to
shareholders by way of another share buyback program. The Board has approved management’s
recommendation to resume the share buyback program, with the objective of enhancing long-term
shareholder value while capitalizing on the Company’s very strong balance sheet position.
The approval of the share buyback program comes at a time when Management believes that Eshraq’s
shares are undervalued by the market and is a clear demonstration of its confidence in the Company’s
long-term growth trajectory.
-Ends-
Media enquiries
George Allen
Teneo
George.Allen@teneo.com
+971 5660 96749
Page 3 of 3 | positive |
Continued Growth Drives Toll Usage Revenue To Another All-Time High in Q2
2023; Salik Announces AED 548 million Dividend Distribution for H1 2023
Results
•
Revenue-generating trips exceed pre-pandemic peak levels and reach another new record of c.
113.8 million trips in Q2 2023, supported by a strong macroeconomic backdrop in Dubai
•
Salik once again reports the highest quarterly toll usage revenue in Q2 2023, since start of
operations; toll usage revenue rose c. 13.8% YoY, reaching a record AED 455 million
•
Active registered accounts and vehicles increase c. 5% and c. 8% YoY, respectively, reaching
approximately 2.2 million and 4.0 million at the end of the second quarter
•
Q2 2023 EBITDA and net profit margins of 66.9% and 52.8%, respectively, continue to reflect
Salik’s streamlined business and robust concession framework
•
Salik achieves robust net profit and free cash flow of AED 273 million and AED 357 million,
respectively in Q2 2023
•
In light of the strong set of results, the Board of Directors approved distributing 100% of H1 2023
net profit as dividends to shareholders (c. AED 548 million, equivalent to 7.3057 fils per share)
Dubai, UAE – 11 August 2023: His Excellency Mattar Al Tayer, Chairman of the Board, and the Board
of Directors of Salik Company PJSC (“Salik” or the “Company”), Dubai’s exclusive toll gate operator,
approved by circulation the Company’s condensed interim financial results for the three-month and
six-month periods ended June 30, 2023.
In the second quarter of 2023, Salik broke new records with 113.8 million revenue-generating trips
and toll usage revenues of AED 455 million. Toll usage revenue, which represent 88% of total revenue,
increased 13.8% YoY, another all-time high since Salik commenced operations in 2007, backed by a
robust expansion of tourism and commercial activity in Dubai. Salik reported net profit of AED 273
million during the quarter and the Board of Directors approved a dividend distribution of AED 548
million for Salik’s financial results of the first half of 2023, after receiving authorization by
shareholders during the General Assembly Meeting held in April 2023 for the Board to decide on
dividend distributions covering first half results of each year.
Commenting on the results, His Excellency Mattar Al Tayer, Chairman of the Board of Directors
of Salik, said “The Company’s exceptional results for the second quarter of 2023 are a testament to
our strategic vision and commitment to delivering long-term value to our shareholders. Revenue-
generating trips not only surpassed pre-COVID levels, but they also increased from the previous
quarter, in spite of the typical seasonality effects.”
His Excellency added: “The visionary leadership of Dubai, coupled with the Roads & Transport
Authority’s ambitions of expansion and growth, have created an environment conducive to our
sustained success. As a company deeply rooted in this dynamic landscape, we have harnessed the
immense potential it offers to propel our business forward. By capitalizing on the city's ecosystem
and global connectivity, Salik continues to emerge as a leading toll gate operator globally.”
Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, commented: "Salik's strong financial
and operational achievements for the second quarter of 2023 continued to build upon ourmomentous award-winning listing on the Dubai Financial Market in September last year. The solid
achievements reflect Dubai's unwavering economic resilience and an unprecedented surge in the
usage of our toll roads. The success validates our robust business model.”
He added: “Salik achieved remarkable profitability during the second quarter of 2023, boasting
impressive revenues of AED 517 million and an EBITDA margin of 66.9%. My team and I remain
committed to deliver exceptional results and unlocking greater value for our shareholders.”
Mobility Highlights
Salik posts 13.8% YoY growth in revenue-generating trips to 113.8 million in Q2 2023, achieving
a new record
The total number of trips, including discounted trips, made through Salik’s eight toll gates in the
second quarter of 2023 witnessed growth of 12.1% YoY, driven by Dubai resuming business-as-
usual commercial and tourist activities, marking the ongoing recovery from the pandemic. As a result,
revenue-generating trips increased 13.8% to 113.8 million trips in the second quarter of 2023
compared to 100.1 million trips in the second quarter of 2022.
Revenue-generating trips exceeded by 6% the pre-pandemic peak level of 107.4 million trips
recorded in the second quarter of 2019, and inched above the previous record level witnessed in the
first quarter of 2023 despite seasonality effects whereby the second quarter typically witnesses
lower level of traffic than the first (5% lower in the case of 2019, Salik’s previous peak year).
In the second quarter of 2023, Al Maktoum bridge saw the number of revenue-generating trips –
excluding paid taxi trips – increase by 52% YoY due to temporary closure of the Floating bridge and
diversion of traffic to Al Maktoum bridge. Excluding Al Maktoum bridge, Salik’s revenue-generating
trips increased 11.6% YoY.
Q2 Q2 % Δ Q1 % Δ H1 H1 % Δ
Million
2023 2022 YoY 2023 QoQ 2023 2022 YoY
Total trips(1) 146.1 130.3 12.1% 146.9 -0.5% 293.0 266.9 9.8%
Discounted trips(2) 30.8 28.5 8.2% 31.7 -2.7% 62.5 58.2 7.3%
% of total trips 21.1% 21.8% -0.8% 21.5% -0.5% 21.3% 21.8% -0.5%
Net toll traffic(3) 115.3 101.9 13.2% 115.2 0.1% 230.6 208.6 10.5%
% of total trips 78.9% 78.2% 0.8% 78.5% 0.5% 78.7% 78.2% 0.5%
Revenue-generating trips(4) 113.8 100.1 13.8% 113.6 0.2% 227.4 205.3 10.7%
% of net toll traffic 98.7% 98.2% 0.5% 98.5% 0.2% 98.6% 98.4% 0.2%
% of total trips 77.9% 76.8% 1..1% 77.3% 0.6% 77.6% 76.9% 0.7%
(1) Total vehicle trips through Salik toll gates
(2) Discounted trips include taxis without passengers, Al Mamzar and Al Maktoum gates free time and discounts, vehicles exempted by law, and multiple violations
and other. Multiple violations refer to drivers that repeatedly drive through the toll gates without paying in 24 hours. In this case, the fine is paid only once
(3) Net toll traffic is total trips minus discounted trips
(4) Revenue-generating trips is net toll traffic minus fines & penalties and unreconciled trips. Revenue-generating trips is the driver for Salik's toll usage fees
revenue, which accounts for the majority of Salik's revenue
Registered vehicles increase 8.2% YoY to c. 4.0 million
The number of vehicles registered with Salik increased 8.2% YoY and 2.0% QoQ to 4.0 million as of
June 30, 2023, reflecting the Emirate of Dubai’s ongoing successful efforts to grow the economy.
Further, registered active accounts increased 5.2% YoY to approximately 2.2 million accounts by
June 30, 2023. Tag activations reached c. 230,000 tags in the second quarter of 2023, a 28%
increase from last year whereas deactivations increased c. 5% YoY to c. 141,000 tags.Financial Highlights
Note on the financial statements:
Comparing Salik's profitability between Q2 2022 and Q2 2023, and similarly, between H1 2022
and H1 2023, may not accurately reflect the company's performance on a like-for-like basis, due
to changes in its operating structure and cost profile. Since July 2022, Salik operates as a
separate legal entity from the RTA through a 49-year concession agreement. As a result, Salik
incurs new costs, such as concession fees, rent, amortization, and transitional service expenses,
as well as finance costs.
Solid growth in toll usage fees drives Salik’s revenue upwards 13.1% YoY to AED 517 million
•
Toll usage fees: Salik continued to break records for a second consecutive quarter, posting its
highest-ever quarterly toll usage revenue during the second quarter of 2023. Continued growth
in commercial and tourist activities in Dubai contributed to a surge in revenue-generating trips.
As a result, toll usage fee revenues increased 13.8% YoY to a record AED 455 million. On a
sequential basis, toll usage fee revenues edged up 0.2% despite seasonality effects whereby
second quarter travel activity is typically softer than the first quarter’s. Toll usage fees
represented 88.1% of the quarter’s total revenues.
•
Fines and penalties: revenues from fines and penalties saw a 5% YoY increase to AED 53 million,
from AED 50 million a year earlier, broadly in line with the increase in the number of violations, net
of violation dismissals (c. 620,000 in Q2 2023 compared to c. 573,000 a year earlier). The number
of net violations remained mostly unchanged as a fraction of net toll traffic, and revenue from
fines and penalties contributed 10.2% to total revenue.
•
Tag activation fees: revenues from tag activation fees increased 37.7% YoY to AED 7 million
and contributed 1.3% of total revenues.
During the first half of 2023, revenue increased 9.7% YoY to over AED 1.0 billion, mainly driven by a
10.7% YoY traffic-driven growth in toll usage fees.
Strong profitability in Q2 2023 underscores strong concession framework
Salik generated an EBITDA of AED 346 million during the second quarter of 2023, broadly flat QoQ,
despite the previously mentioned seasonality effects. In the first half of 2023, EBITDA increased 8.4%
to AED 694 million from AED 640 million in the second half of 2022.
Net profit was broadly flat sequentially, at AED 273 million during the quarter, despite the seasonality
effects. Net profit for the first half of 2023 was AED 548 million, a 3.6% increase over the second half
of 2022.
Salik’s Board of Directors approves dividend distribution of c. AED 548 million for H1 2023
results
In light of Salik’s strong set of results, the Board of Directors approved cash dividends to
shareholders (7.3057 fils per share) for a total distribution of approximately AED 548 million which
represents a full pay-out of the Company’s net profit for the first half of 2023. The Board of Directors
resolution came after receiving authorization by shareholders during the General Assembly Meeting
held in April 2023 for the Board to decide on dividend distributions covering first half results of each
year.Summary of statement of profit or loss
Q2 Q2 % Δ Q1 % Δ H1 H1 % Δ
AED million(1)
2023 2022 YoY 2023 QoQ 2023 2022 YoY
Revenue 517 457 13.1% 520 -0.7% 1,037 945 9.7%
Toll usage fees 455 400 13.8% 454 0.2% 910 821 10.7%
Fines and penalties 53 50 5.0% 55 -4.6% 108 104 3.5%
Tag activation fees 6.5 4.7 37.7% 9 -24.2% 15 16 -6.3%
Other revenue 2 2 38.4% 2 7.8% 4 3 34.7%
EBITDA(2) 346 395 - 348 -0.5% 694 800 -
EBITDA margin 66.9% 86.6% - 66.8% 0.1% 66.9% 84.7% -
Finance costs, net (53) - - (52) 1.3% (105) - -
Profit for the period 273 394 - 275 -1.0% 548 797 -
Earnings per share (AED) 0.036 0.052 - 0.037 -1.0% 0.073 0.106 -
Dividends declared - - - - - 548 - -
Dividends per share (fils) - - - - - 7.3057 - -
(1) Comparing Salik's profitability between Q2 2022 and Q2 2023 and between H1 2022 and H1 2023 may not accurately reflect the company's performance on a
like-for-like basis, due to changes in its operating structure and cost profile since the start of the concession agreement. For further details, please refer to the
notes to the Company’s financial statements.
(2) EBITDA is profit for the period, excluding the impact of finance cost, finance income, and depreciation and amortization expenses
Balance sheet remains solid
In June 2022, Salik secured an AED 4.2 billion credit facility agreement, which includes a revolving
facility of AED 200 million, with Emirates NBD Bank to cover the upfront concession payment and
general corporate purposes. In May 2023, Salik reduced the revolving facility to AED 50 million. At
the end of the quarter, net debt stood at AED 3.1 billion. This translates to a trailing twelve months’
net debt/EBITDA ratio of 2.3x, well below debt covenants.
The Company recorded a favourable net working capital balance of AED -131 million as of 30 June
2023, an increase compared to the first quarter of 2023 (AED -123 million) but broadly stable as a
percentage of revenues.
Summary of financial position
30 June 31 Mar 31 Dec
AED million % Δ QoQ % Δ YtD
2023 2023 2022
Total assets, including: 5,178 5,379 -3.7% 5,303 -2.4%
Cash and cash equivalents 910 1,097 -17.0% 823 10.6%
Total liabilities, including: 4,517 4,500 0.4% 4,699 -3.9%
Borrowings 3,987 3,986 0.0% 3,986 0.0%
Contract liabilities (1) 342 344 -0.7% 338 1.2%
Total equity 660 879 -24.9% 604 9.4%
Net debt 3,077 2,890 6.5% 3,163 -2.7%
Net working capital balance (2) (131) (123) 6.6% (147) -10.8%
(1) Contract liabilities is the sum of current and non-current balances paid in advance by customers relating to recharges and too-ups and tag activation fees
(2) Net working capital is the balance of inventories plus trade and other receivables (unadjusted for impairments) plus dues from related parties minus trade and
other payables, minus due to a related party minus current portion of contract liabilities minus current portion of lease liabilitySolid free cash flow of AED 357 million with a margin of 69.7 % in Q2 2023
In the second quarter of 2023, Salik generated free cash flow of AED 357 million thanks to continued
strong traffic performance. Salik did not incur any capital expenditures during the second quarter of
2023. Free cash flow margin reached 69.1% from 62.5% in the previous quarter.
Summary of cash flow
Q2 Q2 % Δ Q1 % Δ H1 H1 % Δ
AED million
2023 2022 YoY 2023 QoQ 2023 2022 YoY
Operating cash flow before
354 398 - 355 -0.4% 709 813 -
changes in working capital
Changes in working capital 4 19 - (30) - (26) 15 -
Net cash flow from operating
357 417 - 325 9.9% 682 828 -
activities
Net cash generated from / (used)
7 (3) - 4 - 11 (3) -
in investing activities
Net cash (used in) / generated
(550) 3,791 - (55) 898.4% (605) 3,380 -
from financing activities
Free cash flow(1) 357 414 - 325 9.9% 682 825 -
Free cash flow margin(2) 69.1% 90.5% - 62.5% 6.6% 65.8% 87.3% -
(1) Free cash flow is net cash flows from operating activities less purchases of property and equipment plus proceeds from the sale of property and equipment
(2) Free cash flow margin is free cash flow divided by revenue
Business Highlights
Salik wins ‘Best IPO in the Middle East’ at EMEA Finance’s Achievement Awards 2022
In the second quarter of 2023, Salik won the prestigious title of Best Initial Public Offering in the
Middle East 2022 by EMEA Finance Magazine. This recognition comes after the Company’s
successful listing on the Dubai Financial Market. The award was presented at a special ceremony
held in London where prominent representatives from leading companies and financial institutions
across the Middle East, Europe, and Africa were in attendance. Salik’s achievement in securing this
accolade underscores its significant contribution to the financial sector in the region and highlights
its exceptional performance in the Initial Public Offering.
Salik is making further progress in its efforts to promote sustainability
Salik remained committed to environmental sustainability by encouraging the use of electric vehicles
and providing free Salik tags to their owners. As of June 30, 2023, the number of registered vehicles
with these tags doubled from a year earlier, and increased by 11.3% compared to the previous
quarter, reaching 3,194 vehicles.
Salik continues to prioritize investing in its human resources and upholds its commitment to diversity
and inclusivity. Salik expanded its full-time workforce from 12 on June 30, 2022 to 37 personnel as
on June 30, 2023, and saw a rise in the number of nationalities represented from 6 to 12.
Furthermore, Salik continued to emphasize gender diversity, with females comprising 24% of the
total workforce as of June 30, 2023. The company also achieved advancements in Emiratization,
attaining a level of approximately 38% by the end of the quarter.
Salik continued to offer tariff exemptions to vehicles used by charities, schools, people of
determination, ambulances, and other public services. The number of free-of-charge trips made by
exempted vehicles through Salik’s eight toll gates increased 9.8% YoY to c. 2 million during the
second quarter of 2023, at a rate of over 22,000 trips per day, on average. The increase was drivenby an increase in the number of registered exempted vehicles by 12.8% YoY to reach over 50,000
vehicles by the end of the quarter.
Business Outlook
In the second quarter of 2023, Salik continued to experience a consistent and positive increase in
the number of trips made through its eight toll gates. In light of this performance, the company
revises its guidance for the entire year. Salik expects revenue-generating trips to grow 9-10%
compared to 2022, with an EBITDA margin in the range of 66-67%.
—ENDS —
About Salik Company PJSC
The Company was established in its current form, as a public joint stock company in June 2022
pursuant to Law No. (12) of 2022. “Salik”, which means “seamless mobility” in Arabic, is Dubai’s
exclusive toll gate operator and manages the Emirate of Dubai’s automatic toll gates utilising Radio-
Frequency-Identification (RFID) and Automatic-Number-Plate-Recognition (ANPR) technologies. The
Company currently operates 8 toll gates located at strategic junctures, especially on Sheikh Zayed
Road, which is considered the main road in Dubai. In 2022, 539 million journeys were recorded
through Salik’s toll gates, whether for residents commuting within the Emirate for their daily activities
or for tourists visiting Dubai’s attractions. Under a 49-year concession agreement (ending in 2071),
with the Roads and Transport Authority (RTA), Salik has the exclusive right to operate existing and
any future toll gates in Dubai.
Investor Relations Media Enquiries
Mohamed Zein Faisal Tawakul
Head of Investor Relations Marketing & Corporate Communications
E: Mohamed.Zeinelabedin@salik.ae Manager
E: Faisal.Tawakul@salik.ae
Disclaimer
No statement in this document is intended to be nor may be construed as a profit forecast. Any statements
made in this document which could be classed a “forward-looking” are based upon various assumptions,
including, management’s examination of historical operating trends, data contained in the Company’s records
and other data available from third parties. Although the Company believes that these assumptions were
reasonable when made, these assumptions are inherently subject to significant risks, uncertainties and
contingencies. Forward-looking statements are not guarantees of future performance. Risks, uncertainties,
contingencies could cause the actual results of operations, financial condition and liquidity of the Company to
differ materially from those results expressed or implied in the document by such forward-looking statements.
No representation or warranty is made that any of these forward-looking statements or forecasts will come to
pass or that any forecast result will be achieved. No reliance should be placed on any forward-looking statement. | neutral |
Management Discussion &
Analysis Report
Q3 2023
14th of November 2023Invest Bank delivered robust performance over the first nine months
of 2023, with net operating income growing to AED 199 million, which
represents an 81% increase Year-on-Year.
Similar performance was also evident in other metrics. Driven by continued
strengthening in underlying fundamentals, operational and performance
numbers improved across the board, both Y-o-Y and YTD.
81% 433%
AED 199M AED 50M
Operating income Operating profit
39 ppts 37 ppts
75% 40.1%
Cost to income ratio Capital adequacy ratio
5 ppts 19 ppts
16.4% 49.2%
Liquid asset ratio Loans to deposit ratio
33% 7%
AED 11.4bn AED 8.1bn
Total assets Customer deposits
1Over the past nine months, Invest Bank continued to
make steady progress towards its strategic goals. With
dedicated teams attending to forward-looking objectives
such as diversifying the client base and revamping the
technology infrastructure, other teams continued to
work on restructuring and resolving legacy issues. The
multi-pronged strategy currently in place will ultimately
consolidate Invest Bank’s position as one of the UAE’s
leading providers of future-proof banking solutions –
both for retail and corporate customers.
To further strengthen the bank’s financial standing,
a guarantee was secured during the period ending
September 2023, with the Government of Sharjah,
coupled with AED 2.6 billion, as a capital increase.
Part of the available funding will be allocated to
modernizing the bank’s systems with break-through
technologies, including several regional firsts. Successes
in this area are evidenced by multiple awards received by
the bank over the previous nine months, including two
awards for “The Most Innovative Digital Core Banking
Service Provider”.
All KPIs point to the success of the efforts under way,
with financial results for the preceding nine months,
both YoY and YTD, driven by strengthened underlying
growth. Operating Income and Operating Profits are
both on an upward trend, while Cost to Income and
Loans to Deposit ratios continue to drop.
2Financial Statements | Summary
Income Statement Balance Sheet
(AED million) YTD YTD Var. (AED million) Sep Dec Var.
Sept Sept 2023 2022
2023 2022
Net interest income 149 61 144% Cash and deposits 1,014 615 65%
with CB
Non interest income 50 49 2%
Investments 2,340 2,136 10%
Loans & advances 3,986 5,137 -22%
Operating income 199 110 81%
Customer Deposits 8,104 7,587 7%
Operating expenses (149) (125) 19% Shareholders’ Funds 2,349 104 2159%
Operating profit before 50 (15) 433% Total Assets 11,385 8,567 33%
impairment charge
Key Ratios
Net impairment charge (405) (112) 262%
Capital adequacy ratio 40.1% 2.8%
Loss for the period (355) (127) 180%
Liquid asset ratio 16.4% 11.0%
Basic EPS (Fils) (2) (4) Loans to deposit ratio 49.2% 67.7%
3Net Interest Income: increased by 144%, with contribution
to the total operating income amounting to 75%,
which reflects the bank’s success in revenue stream
diversification and business model restructuring.
Operating profit: amounted during the period to AED
50M, i.e. an increase of 433% compared to an operating
loss of AED 15M over the corresponding period of last
year. Operating profits were recorded for the first time
in Q3 2023 since Q1 2022.
Balance sheet fundamentals: maintained robust balance
sheet fundamentals: total assets up 33% YTD to AED
11.4 billion, customer deposits up 7% to AED 8.1 billion,
with a very strong liquidity profile.
Current Account & Savings Account (CASA) balances:
up by 25% YTD, with a contribution of 25% attributed
to customer deposits, thus underlining the continuous
improvement of the bank’s deposit mix.
Net impairment charges: while the allocation of AED
405M for the period is higher than that of last year, it
reflects the continued efforts in de-risking the balance
sheet and alleviating the impact of legacy issues.
Capital Adequacy ratio (CAR): increased to 40.1%,
further relieving any potential constraints on financing
to customers for future growth.
Government of Sharjah shareholding increased from
50.07% to 88.11% pursuant to a rights issue.
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Management Discussion and Analysis Report
National Bank of Fujairah PJSC
For the three month period ended 31 March 2023
National Bank of Fujairah PJSC (NBF) - Q1 2023 Results
Net profit surges 151.8% reaching AED 152.0 million
NBF’s solid financial performance is underpinned by quality core business
growth, proactive asset and liability management, improvement in asset quality
and strong capital adequacy
26 April 2023: NBF is pleased to announce its results today for the three month period
ended 31 March 2023.
Overview of Results and Operational Performance for the three month period
ended 31 March 2023
NBF recorded year-on-year growth of 151.8% to close the three month period with a net
profit of AED 152.0 million compared to AED 60.4 million in the corresponding period of
2022. This demonstrates the bank’s enhanced focus on quality business, an efficient
funding base and improving resilience facilitated by notable local growth despite the
uncertain geopolitical conditions and global environment.
NBF maintained its policy of prudent and transparent recognition of problem accounts taking
into consideration the new credit risk standards being introduced by the Central Bank of the
UAE and the risk of global recession. NBF secured net impairment provisions of AED 245.8
million for the three month period ended 31 March 2023 compared to AED 232.9 million in
the corresponding period of 2022. During the period, the bank’s impairment reserve reduced
by 1.8% to AED 165.1 million compared to AED 168.2 million as at 31 December 2022.
Total provision coverage ratio improved to 110.2% compared to 101.5% as at 31 December
2022. The NPL ratio improved to 5.9% compared to 6.9% as at 31 December 2022 reflecting
the improving quality of the credit portfolio and the progress made with a small number of
exceptional exposures.
Page 1 of 6
Classified as: NBF ExternalSummary of profit and loss for the three month period ended 31 March 2023.
I Operating income Operating Expenses
12.0%
1 34.2% I -18.1%
55I 4.1 1 I 30.7% 19I 0.8
494.7 y I 1
412.8 0 156.3
4 119.6
X
Lu
Q1-23 Q1-22 Q4-22
Q1-23 Q1-22 Q4-22
Operating profit Net impairment losses
I 30.9%
26.6%
f
35.7% I I 5.6% I
39/ 7.9 I I I
7 5 245.8 232.9
, ..3 1 r 293.2 303.9 0 I4u 194.2
Q1-23 Q1-22 Q4-22 Q1-23 Q1-22 Q4-22
Net profit - NBF Group Net profit - NBF Islamic
38.6%
I 151.8% I 1,944.2%
152/ .0 1 I 34.0% 1
7 5
0 I I
1 109.7 4 28.2
18.6
60.4
0.9
Q1-23 Q1-22 Q4-22 Q1-23 Q1-22 Q4-22
Supported by higher net interest, net income from Islamic financing and investment
activities, and fees and commissions, NBF posted an operating profit of AED 397.9 million
for the three month period, a rise of 35.7% compared to AED 293.2 million in the
corresponding period of 2022 and up 30.9% quarter-on-quarter.
Operating income reached AED 554.1 million, up 34.2% compared to AED 412.8 million in
the corresponding period of 2022 and up 12.0% compared to Q4 2022 reflecting the robust
core business performance, good levels of activity and enhanced asset and liability
management in a rising interest rate environment. Net interest income and net income from
Islamic financing and investment activities, up 69.4% and net fees, commission and other
income, up 6.6% compared to the corresponding period of 2022, reaching AED 404.1 million
and AED 112.8 million respectively; and experienced a growth of 10.5% and 24.5%
respectively compared to Q4 2022. Foreign exchange and derivatives income stood at AED
40.1 million compared to AED 47.1 million in the corresponding period of 2022 and up 3.3%
compared to Q4 2022.
Loans and advances and Islamic financing receivables rose by 2.3% to reach AED 27.5
billion compared to AED 26.9 billion at 2022 year-end, up by 1.2% from 31 March 2022.
Page 2 of 6
Classified as: NBF ExternalM
DEA
ni
serugiF
Movement in Operating Income
554.1
412.8
M 16.6 -6.9 -24.3 -9.6
165.5
31 -Mar -22 Net interest Net fees and Foreign exchange Loss from Other operating 31 -Mar- 23
income and net commission and derivatives investments and income
income from income income Islamic
Islamic financing instruments
and investment
activities
M
DEA
ni
serugiF
Investments and Islamic instruments increased by 12.7% to reach AED 7.2 billion
compared to AED 6.3 billion at 2022 year-end, up by 97.1% from 31 March 2022
evidencing the deployment of a portion of liquidity towards a high-quality investment book
offering good risk-to-return as well as access to market liquidity.
Movement in Operating Expense
156.3
119.6
0.3 14.7
21.7
31 -Mar- 22 Employee benefits Depredation and Other operating 31 -Mar -23
expense amortization expenses
Operating expenses increased by 30.7%, reflecting NBF’s investments in its businesses,
systems, infrastructure and people. These investments include a set of digital initiatives
to further enhance our focus on exceptional customer service through digital adoption and
innovation. Nevertheless, NBF’s cost-to-income ratio improved to 28.2% compared to
29.0% in the corresponding period of 2022. This provides ample headroom to continue
investing in our technological capabilities and enhancing the customer experience going
forward.
Page 3 of 6
Classified as: NBF ExternalSummary of financial position as at 31 March 2023
Figures in AED NI
MAR -2023 DEC -2022 Change % MAR -23 MAR -22 Change %
=IL
Total Assets 47,529 47,624 -0.2% 47,529 42,616 11.5%
Loans and Advances and Islamic Financing
Recievables 27,521 26,915 2.3% 27,521 27,206 1.2%
Customer Deposits and Islamic Customer
Deposits 34,840 35,736 -2.5% 34,840 32,167 8.3%
Investments and Islamic instruments 7,156 6,350 12.7% 7,156 3,632 97.1%
Total Equity 6,017 5,850 2.8% 6,017 5,694 5.7%
Customer deposits and Islamic customer deposits stood at AED 34.8 billion compared to
AED 35.7 billion at 2022 year-end, up by 8.3% from 31 March 2022. Current and Saving
Accounts (CASA) deposits stood at 43.2% of total customer deposits softening the impact
of increasing rates for fixed term products on deposit costs.
Summary of the cash flows and capital expenditure during the three month ended
31 March 2023
During the period, surplus liquidity has been deployed to fund quality loans and investment
book growth, while liquidity balances remain well above the bank’s risk appetite and
regulatory requirements. Cash and cash equivalents amounted to AED 2.5 billion
compared to AED 3.6 billion in 31 March 2022. The decrease is mainly on account of a
planned reduction in deposit balances and the utilization of liquidity through the increase
in the investment and loans and advances growth.
During the three month period ended 31 March 2023, NBF had incurred AED 35.2 million
in capital expenditure relating to the additions of property, equipment and intangibles
compared to AED 21.7 million in the corresponding period.
Page 4 of 6
Classified as: NBF ExternalM
DEA
ni
serugiF
Key Performance Indicators
▪ Total assets remained stable at AED 47.5 billion compared to AED 47.6 billion at 2022
year-end, up by 11.5% from 31 March 2022.
▪ Ample liquidity has been maintained with lending to stable resources ratios at 75.1%
(2022: 72.1%) and eligible liquid assets ratio (ELAR) at 22.8% (2022: 24.9%), well
ahead of Central Bank of the UAE’s minimum requirements.
▪ Return on average assets improved to 1.3%, up from 0.6% for the corresponding
period.
▪ Return on average equity improved to 10.2%, up from 4.2% for the corresponding
period.
Our Segmented Focus
NBF’s business strategy continues to revolve around client relationships, supported by the
segmented approach adopted by the bank to serve its customer needs. This also helps in
building diversification and maintaining stable growth.
The operating income from Corporate and Institutional banking customers (including
business banking) for the three month period ended 31 March 2023 was AED 395.7 million,
an increase of 37.4% compared to the corresponding period. Operating income from Retail
Banking increased by 2.5%, and Treasury, ALM & others have increased by 38.4%
compared to the corresponding period.
Segments' contribution to Operating Income
117.4 1 84.8
41.1 40.1
177.0 132.3
218.6 155.6
Mar -23 Mar -22
Corporate and Institutional Banking Business Banking
Retail Banking Treasury, ALM and Others
Further, NBF Islamic recorded operating income of AED 37.7 million for the three month
period ended 31 March 2023 compared to AED 32.3 million in the corresponding period.
Page 5 of 6
Classified as: NBF Externalnbf
nbf Islamic
ail at,
N klal. b.i o.s n_ as l t B 8a.1n_k4 _ o4. l fkaair an
Expectation regarding the economy, sector and its impact on the Bank
NBF's performance has been very encouraging with a robust set of results for the first
quarter supported by the relatively buoyant business environment and the government's
commitment to diversifying the UAE's economy. NBF's staunch focus on quality growth in
supporting our customer's business across all principal segments, improvement in asset
quality and proactive management of investment portfolio enabled it to achieve a strong
overall financial performance.
Despite the uncertain global landscape dominated by significant geopolitical
developments, lingering inflationary pressures exacerbating growth concerns and the
recent stress seen in the global financial system, the UAE has progressed well on the back
of the government's efforts helped by significant hydrocarbon demand. This was evidenced
by the UAE achieving an exceptional 7.9 per cent GDP growth in 2022; and it is anticipated
to continue growing at a steady pace.
NBF is well positioned to gain from this growth and has built the platform for enhanced
value creation aided by its robust capital and liquidity position, digitally enabled bank
strategy for better servicing client needs, prudent risk and compliance management standards and a sound balance sheet. NBF's environmental, social and governance [ESG] approach is in alignment with the sustainability vision of the country and enhanced efforts are being dedicated to benefit from the new opportunities that are arising in this space. We look forward to the NBF franchise continuing to perform with distinction throughout the course of the year and remain confident in its capabilities to navigate the uncertainties with poise and propel
future growth. .
NBF's key shareholders include the Government of Fujairah, Easa Saleh Al Gurg LLC and Investment Corporation of Dubai. Rated Baal / Prime -2 for deposits and A3 for
counterparty risk assessment by Moody's and BBB / A-2 by Standard & Poor's, both with
a stable outlook, the bank is listed on the Abu Dhabi Securities Exchange under the symbol
"NBF". It has a branch network of 15 (of which 1 is an electronic banking service unit) across the UAE.
Awards and Accolades
NBF has been given the Best Fraud & Risk Management Solutions award to recognize its efforts in implementing solutions to tackle online card fraud. The Bank was also recognized
by JP Morgan for best -in -class straight through processing and awarded an Elite Quality Recognition Award for the years 2021 a 022. L AAI ikws)47,,J Vince CooIc A. Anwar Brian Mulholland Chief Executive Officer Deput Chief Executive Chief Financial Officer Officer
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National Bank of Fujairah PJSC PO Box 887, Fujairah, UAE Tel: 600 565551 Outside UAE: +971 450 78499 Fax: +971 9222 7992 nbf.ae
Ir Page 6 of 6
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Borouge Classification: Public
Market Announcement
BOROUGE REPORTS FIRST-HALF REVENUES OF $2.8 BILLION,
VALUE ENHANCEMENT PROGRAMME ACHIEVES $253 MILLION
IMPACT YTD
Despite a challenging market, Borouge achieves healthy sales
volumes and returns to full production capacity
Borouge maintains strong premia above benchmarks in a weak pricing
environment
Value Enhancement Programme delivers positive and material impact
of $253 million year to date
Board endorses $650 million interim dividend and reiterates
commitment to pay $1.3 billion in dividends for 2023
Abu Dhabi, UAE – 28 July 2023: Borouge Plc (“Borouge” or “the Company”) (ADX symbol: BOROUGE
/ ISIN: AEE01072B225), a leading petrochemical company that provides innovative and differentiated
polyolefin solutions, today announced its financial results for the three- and six-month periods ended
30 June 2023, with first-half revenues of $2.8 billion and adjusted EBITDA of $978 million. The
Company’s ambitious Value Enhancement Programme delivered a material $253 million impact in
efficiencies and revenue optimisation year to date and is a significant and positive contributor to
countering external market pressures.
Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge, commented: “In a challenging
market environment, our results for the second quarter and first half of 2023 are a demonstration of our
resilience. Following the successful completion of the planned turnaround of our Borouge 2 facility, our
production is at a very high utilisation rate. In addition, we continue to achieve significant efficiencies
through our ambitious Value Enhancement Programme, which is assisting us in mitigating market
pressures and positions us for further growth.
“In view of our robust financial position and very strong cash conversion, we are pleased to announce
that our board has endorsed an interim dividend of $650 million to be approved by shareholders during
the second half of the year and reiterated our commitment to pay $1.3 billion in dividends for 2023. Our
commitment to creating value for our shareholders, while innovating and differentiating our solutions to
deliver the highest quality in the market, remains as strong as ever.”
Highlights for the three months ended 30 June 2023: Second-quarter revenue increased by 2.5%
quarter-on-quarter, to reach $1.4 billion, and declined on a year-on-year basis. Borouge reported net
income of $231 million in Q2 2023, increasing by 16% compared to the first quarter, supported by a 4%
increase in sales, but decreased compared to Q2 2022.
While top and bottom-line performance in Q2 faced year-on-year pricing challenges, Borouge delivered
a healthy EBITDA margin of 37%, up 10% compared to the previous quarter, reflecting improved
operational efficiencies. Cash conversion was very strong at 96%, with a healthy adjusted operating
free cash flow of $496 million, up 31% compared to the previous quarter.
Pressures from market weakness were partially offset by the positive impact of the Value Enhancement
Programme, as well as by healthy sales volumes and the resilience of the Company’s pricing premia
compared to benchmarks. Strong volumes for both polyethylene (PE) and polypropylene (PP) includedBorouge Classification: Public
Market Announcement
40% of total sales to the value-added infrastructure segment, representing a high premia end market
and strategic growth focus for Borouge. Meanwhile, production resumed at a high utilisation rate
following the successful completion of the planned turnaround of the Borouge 2 facility in Q1.
Pricing premia was maintained above management guidance for both PE ($249/t) and PP ($150/t)
despite softening benchmark prices and some compression driven by a challenging market
environment.
Highlights for the six months ended 30 June 2023: In the first half of 2023, sales volumes grew by
1.5% year-on-year to 2.4 million metric tonnes. Net profit for the period was impacted due to a sharp
22% decline in average selling prices compared to their peak levels in Q2 2022, when prices were
supported by a combination of high product benchmark rates and exceptional premia for PE and PP.
Value Enhancement Programme delivers $253 million material impact within this year
Borouge’s Value Enhancement Programme continues to successfully deliver cost efficiencies and
revenue optimisation. Tracking ahead of its target of $400 million, the programme has achieved a $253
million material impact within this year. This is the result of a stringent and detailed range of operational
improvement initiatives addressing fixed and variable costs.
In addition, Borouge’s cost-advantaged Olefins Conversion Unit (OCU) is operating at high utilisation,
bringing a cost benefit from propylene substitution and supporting margins. Owing to its competitive
feedstock contracts, economies of scale and young asset base, Borouge is positioned in the first quartile
of the global cost curve.
A strong balance sheet and high cash conversion support significant dividends and future
growth; Borouge 4 successfully concludes project funding
Borouge continues to manage a robust balance sheet and maintains a conservative leverage profile,
enabling significant dividend capacity and future growth. Borouge 4, which is being built by the
Company’s major shareholders, ADNOC and Borealis, has reached another important milestone in
completing project funding constituting of equity, shareholder loans and long-term external financing.
The Company continues to explore international expansion opportunities, focusing on geographies and
markets that are aligned with its strategic roadmap.
Driving innovation within the industry
Borouge continues to drive innovation, ensuring that its products are of the highest quality and
sustainability standards. As part of its strategy for innovation, Borouge recently launched a new
polypropylene infrastructure product to assist with the manufacturing of durable, corrosion-free
plumbing and heating pipe systems. With a longer lifetime and easy installation process, the product
provides several sustainability benefits and differentiates the Company’s overall PP product portfolio.
The new solution is expected to add significant value to Borouge’s hot and cold water pipe offering,
aiming to grow its market share of the segment to over 20%.
Outlook
Borouge’s strategy continues to focus on delivering value-added, differentiated products and innovative
solutions to its customers, capitalising on economic opportunities in its territories. While the polyolefin
markets remain challenging, with pricing expected to operate within a narrow band of volatility in 2023,
Borouge remains well positioned in its core territories to continue to deliver product premiaBorouge Classification: Public
Market Announcement
versus benchmarks over the cycle given the Company’s competitive and cost advantaged feedstock
position, economies of scale through one of the world’s largest integrated polyolefins complexes,
proprietary Borstar® technology and leading position in key growing and sustainable market
segments. The Company also expects to realise further material results from its Value Enhancement
Programme during the coming quarters.
Majority shareholder’s recent announcement on potential merger of polyolefins businesses
On 15 July 2023, Abu Dhabi National Oil Company (ADNOC) P.J.S.C. (“ADNOC”), Borouge’s majority
shareholder, and OMV AG (“OMV”), Borealis AG (“Borealis”) majority shareholder, announced that they
entered into formal negotiations regarding a potential merger of Borouge and Borealis. Any final
decision will be subject to the governance processes of Borouge and other relevant parties involved.
Borouge will make any necessary disclosures to the market, if and when required, in full compliance
with its regulatory obligations.
-ENDS-
About Borouge Plc
Borouge Plc, listed on the Abu Dhabi Securities Exchange (ADX symbol “BOROUGE” / ISIN “AEE01072B225”), is
a leading petrochemical company that provides innovative and differentiated polyolefin solutions for the
infrastructure, energy, mobility, healthcare, agriculture and advanced packaging industries. ADNOC owns a
majority 54% stake and Borealis holds a 36% stake in Borouge. To find out more, visit: borouge.com
For further information, please contact:
Rehab Ateeq
VP, Global Communications
Media@borouge.com
Samar Khan
VP, Investor Relations
IR@borouge.com4)
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IINNSSPPIIRRIINNGG TTOOMMOORRRROOWW1. Summary of Operational & Financial Performance
Borouge PLC (Borouge) reported Q2 2023 revenue of $1,416 million, representing a quarter-on-quarter
increase of 2.5 percent, primarily due to a 4.2 percent increase in sales volume after the successful
completion of the planned B2 turnaround in the previous quarter. On a year-on-year basis, Q2 revenue
is down 24 percent, driven by a 25 percent reduction in average selling prices. On a half yearly basis,
revenue is down 19 percent to $2,798 million in H1 2023 versus $3,460 million in H1 2022, primarily
due to a 22 percent decline in average polyolefin prices during this period.
Despite a challenging pricing environment, in Q2 2023, Borouge achieved healthy premia over product
benchmark price of $249 per tonne for Polyethylene (PE) and $150 per tonne for Polypropylene (PP),
respectively. Premia achieved was above management’s through-the-cycle guidance of $200 per tonne
and $140 for tonne for PE and PP, respectively, owing to Borouge’s differentiated product range and
strong market positioning in key product segments.
Borouge reported Q2 2023 Adjusted EBITDA of $518 million, operating profit of $369 million, and net
profit of $231 million. Net profit declined 53 percent year-on-year, primarily owing to a 25 percent
decrease in average selling prices over the period, offset by a 9 percent reduction in the overall cost
base (equivalent to 16 percent reduction in costs per tonne) over the period.
On a half yearly basis, operating profit is down 43 percent to $696 million in H1 2023 versus $1,229
million in the same period last year. Adjusted EBITDA is down 35 percent to $978 million, and net profit
is down by 50 percent to $431 million. These declines are driven primarily by lower average selling
prices during the period.
The Value Enhancement Program has contributed $253 million to EBITDA in H1 2023.
Cash conversion in Q2 2023 increased to 96 percent versus 82 percent in the previous quarter due to
lower maintenance capex in Q2 2023, following the successful completion of the B2 turnaround in Q1
2023. Net debt as of 30 June 2023 is $3,167 million, versus $3,277 million as of 31 March 2023.
Three Months Ended Six Months Ended
30 30 31 30 30
June June March June June
2023 2022 2023 2023 2022
Total sales volumes (kt) 1,206 1,227 1,157 2,363 2,328
…Polyethylene 659 652 573 1,232 1,263
…Polypropylene 547 496 488 1,035 954
…Ethylene and others 0 79 96 96 111
Average selling price ($/t)
…Polyethylene 1,166 1,518 1,202 1,182 1,460
…Polypropylene 1,041 1,435 1,082 1,060 1,409
Product premia ($/t)
…Polyethylene 249 436 264 256 368
…Polypropylene 150 318 137 144 283
Three Months Ended Six Months Ended
30 30 31 30 30
June June March June June
2023 2022 2023 2023 2022
US$MM US$MM US$MM US$MM US$MM
Revenue 1,416 1,870 1,382 2,798 3,460
Cost of sales (899) (932) (914) (1,813) (1,800)
Gross profit 517 937 467 984 1,659
General and administrative
expenses (excluding D&A) (49) (31) (46) (95) (71)
Selling & distribution expense (105) (188) (100) (204) (362)
Other income and expenses 5 1 5 10 3
Operating profit 369 719 327 696 1,229
Profit for the period 231 490 199 431 853
Profit margin (%) 16% 26% 14% 15% 25%
2Total comprehensive income for
the period 226 485 201 427 848
Adjusted EBITDA(1) 518 868 460 978 1,512
Adjusted EBITDA margin (%) 37% 46% 33% 35% 44%
Basic earnings per share (US$) 0.01 0.02 0.01 0.01 0.03
Diluted earnings per share (US$) 0.01 0.02 0.01 0.01 0.03
Net debt 3,167 3,543 3,277 3,167 3,543
(1) Adjusted EBITDA is calculated as EBITDA plus adjustments on foreign exchange gain or loss and impairment loss on property, plant and equipment.
2. Operational Review
In Q2 2023, production resumed at very high utilisation rates of 110 percent and 99 percent for PE and
PP, respectively, following the successful completion of the B2 turnaround in Q1 2023. Resultantly,
sales volumes picked up by 4 percent on a quarter-on-quarter basis.
Three Months Ended Six Months Ended
30 30 31 30 30
June June March June June
2023 2022 2023 2023 2022
Production capacity (kt) 1,242 1,242 1,228 2,470 2,470
…Polyethylene 686 686 678 1,364 1,364
…Polypropylene 556 556 550 1,106 1,106
Utilisation rate
…Polyethylene 110% 92% 78% 94% 87%
…Polypropylene 99% 87% 81% 90% 85%
The Olefin Conversion Unit (OCU), which allows Borouge to internally produce large amounts of
propylene from ethylene also operated at a high utilization rate in Q2. Ethylene is typically prioritized
for use in maximizing PE production and the additional quantities are sent to the OCU.
3. Revenue & Pricing
Three Months Ended Six Months Ended
30 30 31 30 30
June June March June June
2023 2022 2023 2023 2022
Sales volumes by product (kt)
…Polyethylene 659 652 573 1,232 1,263
…Polypropylene 547 496 488 1,035 954
…Ethylene and others 0 79 96 96 111
Polyethylene (US$ / t)
…Average sales prices 1,166 1,518 1,202 1,182 1,460
…Premia 249 436 264 256 368
...Benchmark 916 1,082 938 926 1,092
Polypropylene (US$ / t)
…Average sales prices 1,041 1,435 1,082 1,060 1,409
…Premia 150 318 137 144 283
…Benchmark 891 1,117 945 916 1,126
Three Months Ended Six Months Ended
30 30 31 30 30
June June March June June
2023 2022 2023 2023 2022
Revenue by product (US$MM) (US$MM) (US$MM) (US$MM) (US$MM)
…Polyethylene 820 1,049 758 1,578 1,953
…Polypropylene 591 734 555 1,145 1,386
…Ethylene and others 5 87 69 74 121
Total revenues 1,416 1,871 1,382 2,798 3,461
3(1) Benchmark prices represent HDPE Blow Molding NEA CFR and polypropylene Raffia NEA CFR prices as per IHS Markit data.
(2) Average sales prices are equal to revenue over sales volumes (including commissions).
(3) Premia is equal to the difference between average sales prices and the benchmark prices.
Q2 2023 sales volumes are up by 4.2 percent versus the prior quarter, mainly due to the resumption of
production following the B2 the successful completion of the planned Borouge 2 Turnaround. Sales
volumes from energy & infrastructure solutions represent c.40 percent of polyolefin sales volumes in
the second quarter. This is part of Borouge’s strategy to focus on durable products for industrial
applications. Specifically, sales volumes of PE100, a key premium product used in infrastructure
applications, have contributed positively to the overall sales mix outcome. The Asia Pacific market
continues to be the largest destination for polyolefin sales with 66 percent of total polyolefin sales
volumes followed by the Middle East and Africa with 27 percent of total polyolefin sales volumes.
On a year-on-year basis, blended average selling prices across PE and PP were down 25 percent from
the exceptionally high prices achieved in Q2 2022. On a sequential quarter-on-quarter basis, prices
were down 3 percent.
Despite a challenging pricing environment, Borouge was able to command high premia over benchmark
prices, reflecting Borouge’s strong market positioning in key market segments. Premia for PE and PP
were $249 per tonne (down 6 percent Q-o-Q basis) and $150 per tonne (up 9 percent Q-o-Q basis),
respectively.
Segmental revenue breakdown (includes polyolefins and olefins)
Three Months Ended Six Months Ended
30 30 31 30 30
June June March June June
2023 2022 2023 2023 2022
By product group
…Polyethylene 58% 56% 55% 56% 56%
…Polypropylene 42% 39% 40% 41% 40%
…Ethylene and others 0% 5% 5% 3% 4%
By end market
…Consumer solutions 52% 48% 45% 49% 48%
…Infrastructure solutions 45% 45% 48% 46% 46%
…Other 3% 6% 7% 5% 6%
By geography
…Asia Pacific 65% 57% 59% 62% 57%
…Middle East & Africa 28% 32% 29% 29% 32%
…Rest of World 6% 7% 7% 7% 7%
…Ethylene & others 0% 5% 5% 3% 3%
(1) Consumer Solutions includes sales to the agriculture sector.
(2) “Other” in “By End Markets” includes mobility and healthcare sectors and ethylene and other products.
Segmental volume breakdown (includes polyolefins and olefins)
Three Months Ended Six Months Ended
30 30 31 30 30
June June March June June
2023 2022 2023 2023 2022
By product group
…Polyethylene 55% 53% 50% 52% 54%
…Polypropylene 45% 40% 42% 44% 41%
…Ethylene and others 0% 6% 8% 4% 5%
By end market
…Consumer solutions 58% 50% 49% 53% 50%
…Infrastructure solutions 40% 42% 41% 40% 44%
…Other 2% 8% 10% 6% 7%
By geography
…Asia Pacific 66% 57% 56% 61% 58%
…Middle East & Africa 27% 30% 28% 28% 30%
…Rest of World 7% 6% 7% 7% 7%
…Ethylene & others 0% 6% 8% 4% 5%
(1) Consumer Solutions includes sales to the agriculture sector.
(2) “Other” in “By End Markets” includes mobility and healthcare sectors and ethylene and other products.
44. Costs
Three Months Ended Six Months Ended
30 30 31 30 30
June June March June June
2023 2022 2023 2023 2022
US$MM US$MM US$MM US$MM US$MM
Revenue 1,416 1,870 1,382 2,798 3,460
Cost of sales (excluding D&A) (750) (792) (781) (1,531) (1,528)
…Feedstock costs
(324) (320) (375) (699) (593)
…Other variable and fixed
production costs (426) (472) (406) (832) (935)
…as % of revenue 53% 42% 57% 55% 44%
General and administrative
expenses (excluding D&A) (49) (31) (46) (95) (71)
…as % of revenue 3% 2% 3% 3% 2%
Selling and distribution
expenses (105) (188) (100) (204) (362)
…as % of revenue 7% 10% 7% 7% 11%
Other income and expenses 5 1 5 10 3
Depreciation and amortization (149) (141) (133) (282) (272)
Operating profit 369 719 327 696 1,229
…as % of revenue 26% 38% 24% 25% 36%
The Value Enhancement Program continues to perform strongly, achieving a $253 million EBITDA
impact in H1 2023, comprising an approximate 70/30 split between cost efficiencies and revenue
enhancement, respectively. The overall cost base in Q2 is down 9 percent year-on-year and down 1
percent quarter-on-quarter. Total cost per tonne in Q2 2023 are down 16 percent year-on-year and 18
percent quarter-on-quarter. Cost of Sales are down 5 percent year-on-year and 4 percent quarter-on-
quarter, supported by a 14 percent decrease in feedstock costs.
General and admin expenses increased by 56 percent from $31 million to $49 million on a year-on-year
basis due to non-recurring one-off items such as bad debt provisions. Selling and distribution expenses
in Q2 2023 are down by 44 percent year-on-year primarily due to significant decreases in freight costs
versus the same period last year.
5. Cash Generation
Three Months Ended Six Months Ended
30 30 31 30 30
June June March June June
2023 2022 2023 2023 2022
US$MM US$MM US$MM US$MM US$MM
Profit for the period 231 490 199 431 853
Income tax expense 88 212 84 172 347
Net finance loss, including
foreign exchange loss 49 17 44 93 29
Depreciation of property, plant,
and equipment 139 135 126 265 259
Depreciation of right-of-use
assets 10 0.4 6 15 2
Amortisation of intangible assets 1 5 1 2 11
Impairment loss on property,
plant & equipment - 8 - - 10
Adjusted EBITDA (1) 518 868 460 978 1,512
5Capital expenditure (2) 22 (44) 83 105 84
Adjusted operating free cash flow
(3) 496 912 378 873 1,428
Cash conversion (%) 96% 105% 82% 89% 94%
(1) Adjusted EBITDA is calculated as EBITDA plus adjustments on foreign exchange gain or loss and impairment loss on property, plant and equipment.
(2) Capital expenditure is calculated as additions to property, plant and equipment for the period.
(3) Adjusted Operating Free Cash Flow is calculated as Adjusted EBITDA less capital expenditure.
Adjusted EBITDA in Q2 2023 increased by 13 percent to $518 million versus the prior quarter, reflecting
the increased sales volumes and the positive impact of the Value Enhancement Program. On a half
yearly basis, adjusted EBITDA is down by 35 percent to $978 million reflecting a decrease in the top
line due to the challenging overall pricing environment.
Borouge generated $496 million of adjusted operating free cashflow during the second quarter at a
conversion rate of 96 percent versus 82 percent in the previous quarter due to lower maintenance
related capex in the period in Q2 2023 following the completion of the turnaround activities in the
previous quarter.
6. Current Trading & Outlook
The outlook for polyolefins in the remainder of 2023 remains cautious and market analysts anticipate
a narrow band of price volatility during this period. Market analysts expect a soft pricing environment in
Asia to remain, resulting from new polyolefin production capacities coming online and until the delayed
recovery in China and Asian demand materializes.
Borouge Management re-affirms the existing through-the-cycle premia guidance for PE and PP of $200
per tonne and $140 per tonne, respectively.
Management expects production volumes to remain strong and focused on more differentiated
products. Borouge’s core strategy of developing innovative products continues to support our premium
pricing.
Within our cost base, ethane costs will remain essentially fixed under our long-term pricing agreement
with ADNOC, which provides us with significant long-term feedstock security, a key competitive
advantage. Propylene costs, which broadly track oil prices, remain elevated. We anticipate continuing
to run our OCU at high rates in the coming quarter, generating cost effective propylene feedstock for
PP production. We also anticipate strong progress to continue to be made on the Value Enhancement
Program during the remainder of the year.
Management reiterates its commitment to pay $1.3 billion in dividends for the Financial Year 2023. In
relation to H1 2023, the Board has endorsed an interim dividend of $650 million to be approved by
shareholders during the second half of 2023.
The Company will announce its Q3 2023 results on 31 October 2023.
6BBOORROOUUGGEE PPLLCC
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33 | positive |
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TTEECC66MM GGRROOUUPP (i4o4(<4 !..i aparc-99-4 400
TECOM GROUP 9-MONTH NET PROFIT JUMPS 20% WITH
REVENUES INCREASING TO AED 1.6 BILLION
• 9-month revenue increased by 7% YoY to AED 1.6 billion, driven by high occupancy levels across the
portfolio as the Group continues to witness strong demand from existing and new customers
• 9-month EBITDA rose 14% YoY to AED 1.2 billion and the EBITDA margin expanded to 78%, as the
Group continues to realise gains from asset and operational optimisation strategies
• Net profit in Q3 2023 increased by 34% YoY to AED 283 million, demonstrating the Group’s ability to
take advantage of favourable market conditions to continue delivering profitable growth
• The Group will begin the development of new storage & logistics facilities with a total GLA of 200,000
sq.ft. in Dubai Science Park
Dubai, UAE, 31 October 2023 – TECOM Group PJSC (DFM: TECOM), (the “Company” or the “Group”), the
creator of specialised business districts and vibrant communities, today announced its financial results for
the third quarter (Q3) and the 9-month period of the year ending 30 September 2023. The Group
delivered a strong financial and operational performance, reporting a 7% year-on-year (YoY) increase in
revenue to AED 1.6 billion and a 20% YoY increase in net profit to AED 768 million in the first nine months
of year 2023.
Financial Highlights
AED Millions 9 Months %Change Q3 %Change
(Unless otherwise stated) 2023 2022 (YoY) 2023 2022 (YoY)
Revenue 1,590 1,480 7% 541 490 10%
EBITDA 1,234 1,087 14% 410 364 13%
EBITDA Margin 78% 73% 4% 76% 74% 1%
Net Profit 768 639 20% 283 212 34%
Operational Highlights
Commercial and Industrial 30 September 2023 30 September 2022 YoY%
Occupancy Level 88.5% 83.5% 5%
Number of Customers 10,800+ 9,200+ 17%Abdulla Belhoul, Chief Executive Officer, TECOM Group, said: “Our
outstanding financial and operational performance over the nine-month period
reflects our ability to take advantage of Dubai’s favourable market conditions as
we continue to successfully push ahead with our strategy of optimising our
diverse portfolio and sustaining high occupancy rates.”
“Our 10 business districts are almost near full capacity, with our existing
customers continuing to renew their leases with us and new customers coming on board.
This is a testament to the strong demand for our quality assets and unique, fully serviced strategic
locations underpinned by buoyant business conditions. We are very proud of the growing, diverse and
quality customer base we have built and will continue to focus our efforts on being the go-to destination
for international and regional businesses. Furthermore, our business model, which includes a balance
between long-term and short-term leases, enables us to take advantage of rising prices while providing
us with greater revenue stability and visibility.”
Financial Highlights
Nine Months 2023:
• Revenue increased by 7% YoY to AED 1.6 billion, supported by the continued improvement in
occupancy levels and the sustained strong customer retention rates across the Group’s portfolio.
o Occupancy level for commercial and industrial assets reached 88.5% as of 30 September
2023, a notable increase from the 83.5% occupancy rate recorded in the year-ago period.
This was predominately driven by growing demand for quality office space and industrial
storage & logistics facilities.
o The Group saw an increase of 17% in the number of new customers, adding more than
1,600 new customers.
o Customer retention rate stood at 89% by the end of the 9-month period of 2023,
reaffirming the Group’s unique offering and high customer satisfaction rates.
• EBITDA increased by 14% YoY to AED 1.2 billion and the EBITDA margin expanded by 4% to reach
78% in 9M 2023, mainly driven by improved revenue quality and enhanced cost efficiencies, in
line with Group’s strategy to optimise its core business.
• Net profit grew by 20% YoY to AED 768 million in line with the positive top-line performance and
strong growth across all business segments, underpinned by the continued boom that the real
estate market in Dubai is witnessing.
• Funds from operations (FFO) stood at AED 1.1 billion, representing an increase of 22% YoY, driven
by improved operational efficiencies across all assets.
• The Group maintained a healthy debt profile with a loan to value (LTV) ratio of 14.2% and a 7.1x
EBITDA-to-interest ratio, driven by prudent financial management and continued hedging against
rising interest rates.
Q3 2023:
• Revenue increased by 10% YoY to AED 541 million and saw a strong sequential growth since the
beginning of the year as the Group continues to take advantage of the favourable commercial
real estate market conditions in Dubai.• EBITDA rose by 13% YoY to AED 410 million and the EBITDA margin increased to 76% in Q3 2023,
impacted by the positive top-line performance and enhanced operational efficiencies.
• Net profit for the three-month period increased by a remarkable 34% YoY to AED 283 million,
underpinned by the strong growth in revenues, lower operational expenses and lower financing
costs which was supported by the recent refinancing of the loan facility at lower margins and
more favourable terms.
Project Development Highlights
Given the demand surge for Grade A storage & logistics spaces across Dubai, the Group will develop new
storage & logistics facilities with a total GLA of 200,000 sq.ft. in Dubai Science Park.
---ENDS---
Note to Editors
Definitions
TECOM Group has an integrated portfolio of real estate assets, spread across 10 strategically located business districts
in Dubai. These business districts serve six industry sectors. We refer to each sector we serve as a Cluster, which
consists of one or more business districts operating in the same industry.
• Technology Cluster: Consists of Dubai Internet City and Dubai Outsource City.
• Media Cluster: Consists of Dubai Media City, Dubai Studio City and Dubai Production City.
• Education Cluster: Consists of Dubai International Academic City and Dubai Knowledge Park.
• Science Cluster: Consists of Dubai Science Park.
• Design Cluster: Consists of Dubai Design District.
• Manufacturing Cluster: Consists of Dubai Industrial City.
More broadly, the Group provides real estate solutions across three segments: Commercial Leasing, Land Leasing and
Industrial Leasing.
• Commercial Leasing. TECOM Group provides state of the art built-to-lease (BTL) and built-to-suit (BTS)
properties across office and retail spaces including purpose-built business centres and HQs tailored to
customer specifications as well as industry specialised facilities (e.g. sound stages, film studios, university
campuses, lab facilities, etc.). Typically, BTL properties have a lease term of one to five years and BTS
properties have lease terms of 10 years and over.
• Industrial Leasing. Warehouse space, showrooms and worker accommodation facilities utilised by large
corporates and other businesses to accommodate their employees. Typically, lease terms for Industrial
Leasing are one to five years.
• Land Leasing. Available land within our various business districts for which infrastructure (e.g. roads, water,
electricity, sewage) is already in place or will be put in place allowing us to lease the land or utilise it for our
planned future investments. Typically, lease terms for Land Leasing are between 30 to 50 years.
TECOM Group also provides an array of value-added government and business services (e.g. visa, immigration,
licensing, etc.) including services promoting individual talent, startups and entrepreneurship through our dedicated
platforms axs, in5, gofreelance, marketplace.ae and D/Quarters respectively, as well as advertising, property and venue
management services specific to each industry/district. Collectively, we refer to these services as Services & Others.
MEDIA ENQUIRIES INVESTOR RELATIONS ENQUIRIES
TECOM Group Mutaz Albadri Ghaith Zghaibi
media@tecomgroup.ae ir@tecomgroup.ae
Brunswick Group tecomgroup@brunswickgroup.comr
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TEC6M 17371P | positive |
28 July 2023
2023 ويلوي 28
Disclosure & Compliance Section
لاثتملااو حاصفلاا مسق
Market Operations Surveillance Dept
ةباقرلاو تايلمعلا ةرادإ
Abu Dhabi Securities Exchange (ADX)
ةيلاملا قراولأل يبظوبأ قوس
Abu Dhabi, UAE
ة دحتملا ةيبرعلا ترااملإا ،يبظوبأ
Greetings,
،،،دعبو ةبيط ةيحت
Subject: Meeting of the Board of Directors
لاتيباك ةحاولا ةكرش ةرادإ سلجم عامتجا :عوضوملا
of Waha Capital PJSC on Friday
28 قفاوملا ةعمجلا موي دقعنملا ع.م.ش
28 July 2023
2023 ويلوي
We refer to the above matter and write to notify
سلجم نأب مكديفن اننإف ،هلاعأ عوضوملا ىلإ ةراشلإاب
you that the Board of Directors of Waha
دقع دق )ةكرشلا( ع.م.ش لاتيباك ةحاولا ةكرش ةرادإ
Capital PJSC (the Company) held a meeting at
يف 2023 ويلوي 28 قفاوملا ةعمجلا موي هل ًاعامتجا
10:00 am on Friday 28 July 2023, via video
لاصتلاا ةيصاخ مادختساب ًاحابص ةرشاعلا ةعاسلا مامت
conference, and resolved as follows:
:يلي ام ررقو يئرملا
1. To approve the Company’s Q2 2023
نم يناثلا عبرلل ةكرشلل ةيلاملا مئاوقلا ىلع ةقفاوملا .1
financial statements.
.2023 ماعلا
2. To approve certain other matters relating to
لامعأب ةقلعتم ةماع لئاسم ىلع سلجملا قفاو امك .2
the general business of the Company.
.ةكرشلا
Yours faithfully,
،،،ريدقتلاو مراتحلاا قئاف لوبقب اولضفتو
_____________________________________
ماعلا ينوناقلا راشتسملا – سرـــيام لواــب
Paul Myers – General Counsel
Copy to: Securities & Commodities Authority (SCA)
علسلاو ةيلاملا قراولأا ةئيه : ىلإ ةخسنManagement discussion and analysis for the
period ended 30 June 2023
www.wahacapital.comAl Waha Capital PJSC (“the Company”) and its subsidiaries (together referred to as “the Group”) reported net profit attributable
to Owners of the Company of AED 168.9 million for the six-month period ended 30 June 2023 compared to AED 87.3 million
for the corresponding period of 2022.
KEY ACTIVITIES DURING THE PERIOD
The following key activities occurred during the period:
• Public Markets total assets under management reached AED 7.3 billion (USD 2.0 billion) as of 30 June 2023
compared to AED 4.8 billion (USD 1.3 billion) as of 31 December 2022, an increase of 51%. Within this figure, assets
under management attributable to Owners of the Company were AED 3.1 billion as of 30 June 2023 compared to
AED 3.0 billion as at 31 December 2022.
• The period to date returns from funds managed by the Group were: Waha Emerging Markets Credit Fund SP
(previously referred to as the Waha CEEMEA Credit Fund SP) of 3.8% (net), Waha MENA Equity Fund SP of 10.5%
(net) and Waha Islamic Income Fund SP of 3.78% (gross).
• Private Investment assets under management (including Waha Land) stood at AED 1.6 billion as of 30 June 2023
compared to AED 1.7 billion as at 31 December 2022.
Summary income statement for the period ended 30 June
(AED ‘000)
H1 2023 H1 2022 Q2 2023 Q2 2022
Revenue from sale of goods and services 71,916 55,375 35,880 28,695
Cost of sale of goods and services (53,505) (44,367) (26,875) (22,931)
Share of profit from equity-accounted associates and joint
ventures,net 1,598 4,986 1,170 2,303
Gain on disposal of equity-accounted associates and joint
ventures 5,021 31,263 5,021 31,263
Income / (loss) from financial investments, net 445,794 149,853 226,254 (107,815)
Income from investment property, net 23,468 24,572 11,782 12,430
Other income, net 6,048 2,318 5,353 1,827
Net operating income / (loss) 500,340 224,000 258,585 (54,228)
General and administrative expenses – company (93,373) (39,181) (44,790) (4,358)
General and administrative expenses – subsidiaries (27,324) (25,412) (13,758) (13,255)
Finance cost, net (61,497) (54,284) (29,578) (28,547)
Total expenses (182,194) (118,877) (88,126) (46,160)
Profit / (loss) for the period from continued operations 318,146 105,123 170,459 (100,388)
Discontinued operations
Loss from discontinued operations - (6,430) - (1,008)
Loss for the period from discontinued operations - (6,430) - (1,008)
Profit / (loss) for the period 318,146 98,693 170,459 (101,396)
Non-controlling interests (149,290) (11,411) (76,558) 42,054
Profit / (loss) attributable to owners of the Company 168,856 87,282 93,901 (59,342)
Basic and diluted earnings per share (AED) 0.090 0.046 0.050 (0.032)
Basic and diluted earnings / (loss) per share from
continuing operations attributable to the Owners of
the Company (AED) 0.090 0.043 0.050 (0.032)
2NET OPERATING INCOME
Six-month period ended 30 June 2023
Net operating income of AED 500.3 million for the six-month period ended 30 June 2023, compared to AED 224.0 million
for the corresponding period of 2022, was driven by the following:
• Public Markets income of AED 481.1 million compared to AED 151.5 million in 2022 showing strong performance
driven by fee income and increase in assets under management.
• Private Investments loss of AED 4.4 million compared to income of AED 47.1 million in H1 2022 mainly due
• Gross Profit from healthcare business of AED 18.4 million (H1 2022: AED 11.0 million)
• Gain on disposal of AED 5.0 million (H1 2022: AED 31.3 million) offset by
• Loss from financial investments of AED 29.7 million (H1 2022: AED 1.6 million)
• Waha Land income of AED 23.6 million compared to AED 25.4 million in H1 2022
Three-month period ended 30 June 2023
Net operating income of AED 258.6 million for the three-month period ended 30 June 2023, compared to a loss of AED 54.2
million for the corresponding period of 2022, was driven by the following:
• Public Markets gain of AED 242.7 million compared to loss of AED 72.2 million in Q2 2022
• Private Investments profit of AED 4.1 million compared to loss of AED 5.2 million in Q2 2022 mainly due to:
• Loss from financial investments of AED 11.4 million (Q2 2022: AED 1.6 million) offset by
• Gain on disposal of AED 5.0 million (Q2 2022: AED 31.3 million)
• Waha Land income of AED 11.8 million compared to AED 12.8 million in Q2 2022
TOTAL EXPENSE ANALYSIS
Six-month period ended 30 June 2023
Total expenses for the six-month period ended 30 June 2023 was AED 182.2 million compared to AED 118.9 million in 2022,
mainly comprised of:
• General and administrative expenses - company, amounting to AED 93.4 million compared to AED 39.2 million for
the corresponding period of 2022, an increase of AED 54.2 million mainly due to a prior year reversal of AED 23.7
million in 2022 and higher performance-based incentive compensation accrued in 2023
• General and administrative expenses – subsidiaries, amounting to AED 27.3 million compared with AED 25.4 million
for the corresponding period of 2022
• Finance costs, net - company, amounting to AED 56.6 million, compared to AED 32.9 million in the corresponding
period of 2022, an increase of AED 23.7 million, mainly due to increase in interest rates
• Finance costs, net - subsidiaries, amounting to AED 4.9 million, compared to AED 21.4 million in the corresponding
period of 2022, a decrease of AED 16.5 million, mainly due to higher interest income generated in the public markets
business.
Three-month period ended 30 June 2023
Total expenses for the three-month period ended 30 June 2023 was AED 88.1 million, compared to AED 46.2 million in
2022, mainly comprised of:
• General and administrative expenses - company, amounting to AED 44.8 million compared to AED 4.4 million for
the corresponding period of 2022, an increase of AED 40.4 million, mainly due to a prior year reversal of AED 10.4
million in 2022 and higher performance-based incentive compensation accrued in 2023
• General and administrative expenses – subsidiaries, amounting to AED 13.7 million compared to AED 13.3 million
for the corresponding period of 2022
• Finance costs, net - company, amounting to AED 29.1 million, compared to AED 17.8 million in the corresponding
period of 2022, an increase of AED 11.3 million, mainly due to higher interest rates
• Finance costs, net - subsidiaries, amounting to AED 0.5 million, compared to AED 10.7 million in the corresponding
period of 2022, a decrease of AED 10.2 million, mainly due to higher interest income generated in the public markets
business.
3NET PROFIT / (LOSS) ATTRIBUTABLE TO OWNERS OF THE COMPANY
Six month period ended 30 June 2023
Net profit attributable to owners of the Company of AED 168.9 million for the six-month period ended 30 June 2023,
compared to a net profit of AED 87.3 million for the corresponding period of 2022, was mainly driven by the following:
• Public Markets profit of AED 308.1 million compared to AED 93.8 million in 2022;
• Private Investments loss of AED 26.2 million compared to profit of AED 27.6 million in 2022;
• Waha Land profit of AED 16.0 million compared to AED 19.5 million in 2022; and
• Finance and other corporate costs of AED 129.0 million compared to AED 53.6 million in 2022.
•
Three month period ended 30 June 2023
Net profit attributable to owners of the Company of AED 93.9 million for the three-month period ended 30 June 2023,
compared to a loss of AED 59.3 million for the corresponding period of 2022, was mainly driven by the following
• Public markets profit of AED 155.0 million compared to a loss of AED 53.7 million in 2022;
• Private Investments loss of AED 3.3 million compared to AED 2.2 million in 2022;
• Waha Land Profit of AED 8.3 million compared to AED 9.4 million in 2022; and
• Finance and other corporate costs of AED 66.1 million compared to AED 12.8 million in 2022.
Net profit / (loss) by segment attributable to owners of the Company (AED million)
155 308
Public Markets Public Markets
(54) 94
(3) (26)
Private Investment Private Investment
(2) 28
8 16
Waha Land Waha Land
10
19
(66)
Corporate (129)
(13) Corporate
(54)
94
Net Profit 169
(59) Net Profit / (loss)
87
Q2 2023 Q2 2022 H1 2023 H1 2022
4WAHA CAPITAL
Summary Balance Sheet (AED ‘000)
As at 30-Jun-23 As at 31-Dec-22
Investments in equity accounted associates and joint ventures 92,257 95,505
Right-of-use assets 29,350 35,245
Investment property 351,841 282,232
Financial investments 7,668,093 6,873,932
Loan investments 43,459 40,749
Other assets 1,008,353 905,489
Cash and bank balances 552,276 797,349
Assets Held For Sale 466,940 466,940
Total assets 10,212,569 9,497,441
Borrowings 3,971,481 3,585,715
Derivative liabilities 97,218 72,644
Lease liabilities 29,377 34,368
Trade and other liabilities 359,793 475,768
Total liabilities 4,457,869 4,168,495
Total equity 3,515,585 3,501,123
Total liabilities and equity 10,212,569 9,497,441
Total assets composition (AED million)
The Group’s total assets of AED 10,212.6 million as at 30 June 2023, compared to AED 9,497.4 million as at 31 D
2022, an increase of 7.5% and mainly comprised of:
a) Financial investments of AED 7,668.1 million compared to AED 6,873.9 million in 2022, an increase of AED 794.2
f AED 840.1 f AED 45.9
million from private investments.
b) Cash .<• AED 552.3 AED 797.3 2022, a decrease of AED 245.0
million mainly due to:
Dividends paid of AED 150.7 million payments for development of properties f AED 69.6 million decrease in
working capital of public market funds AED 183.1 million and settlement of unclaimed dividends to 2015 in
line with regulatory directives of AED 22.0 million; offset by
non-controlling interest holders of AED 263.6 million from new nvestments n Public Market
funds
c) Other assets of AED 1,008.4 million as at 30 June 2023 compared to AED 905.5 million as at 31 December 2022,
an ■ f AED 102.9 million mainly due to increase n receivables of public market funds due trom brokers on
settlement of trades offset by settlement of unclaimed dividends 2015 in line with regulatory directives of
AED 22.0 million
5The Group’s total liabilities of AED 4,457.9 million as at 30 June 2023 compared to AED 4,168.5 million as at 31 December
2022, an increase of AED 289.4 million, comprised of:
a) Borrowings of AED 3,971.5 million compared to AED 3,585.7 million as at 31 December 2022, an increase of AED
385.8 million:
• Corporate: RCF outstanding stood at AED 1,294.6 million as of 30 June 2023 compared to AED 1,291.3 million
as at 31 December 2022
• Subsidiaries: Outstanding borrowings of AED 2,676.9 million as of 30 June 2023 compared to AED 2,294.4
million mainly represents increase in repurchase liabilities related to public market funds of AED 331.1 million.
b) Trade and other liabilities of AED 359.8 million compared to AED 475.8 million as at 31 December 2022, a decrease
of AED 116.0 million; mainly represents decrease in payables of public market funds due to brokers on settlement
of trades, employee related payments and settlement of unclaimed dividends prior to 2015 in line with regulatory
directives.
6BUSINESS AND PORTFOLIO COMPANIES ANALYSIS
The Group’s business comprises three primary divisions: Public Markets, Private Investments and Waha Land.
Public Markets
The Public Markets business (operated by Waha Investments PrJSC, a wholly owned subsidiary) focuses on applying
rigorous analysis to emerging markets to deliver solid returns over a market cycle on behalf of the Group and external
investors. All the funds under Waha Investment’s management continue to perform well, despite the challenging macro-
economic conditions impacting markets around the world.
Since inception of Waha Investment’s business in 2012, two flagship funds were established: the Waha Emerging Markets
Credit Fund SP (previously referred to as the Waha CEEMEA Credit Fund SP) and the Waha MENA Equity Fund. Time, and
initial seed capital of AED 368m (US$100m) in each, has been invested to build the team, infrastructure, and track record
before looking to raise third party capital.
The Waha Islamic Income Fund SP with seed capital of AED 92 million (US$ 25 million) was launched in Q3 2020 to invest
in Sharia compliant assets across the Sukuk and equity markets.
During H1 2023, Waha Investment was mandated to manage an AED 1.8 billion (US$ 500 million) fund for an institutional
client, bringing total AUM to AED 7.3 billion (US$ 2.0 billion).
The key strategic focus of Waha Investment is to continue to actively manage client assets, while generating market leading
performance and attracting third party institutional and high net worth investors.
Waha Investment’s managed funds’ period to date returns on invested capital were:
• Waha Emerging Markets Credit Fund SP (previously referred to as the Waha CEEMEA Credit Fund SP) of 3.8%
(net) on a fund size of AED 2.18 billion (US$ 593.6 million)
• Waha MENA Equity Fund SP of 10.5% (net) on a fund size of AED 3.02 billion (US$ 821.5 million)
• Waha Islamic Income Fund SP of 3.78% (gross) on a fund size of AED 0.17 billion (US$ 46.3 million)
Private Investments
The Private Investments business commenced a multi-asset investment strategy in the last quarter of 2021. This included
the launch of two new investment portfolios – Global Opportunities and Core.
The Global Opportunities portfolio has a broad and flexible investment mandate enabling Waha Capital to invest across
geographies, industries, capital structures and asset classes, in an opportunistic manner. This diversified portfolio, which was
launched in November 2021, targets investments in the alternatives space with high risk-adjusted returns. The net carrying
value of the Global opportunities portfolio as of 30 June 2023 was AED 511 million.
The Core portfolio seeks to take controlling or significant minority stakes in businesses in the MENA region with established
track records, strong management teams and robust governance frameworks. Such companies would typically demonstrate
stable capital growth prospects, whilst providing recurrent and reliable cash yields. The net carrying value of the Core portfolio
as of 30 June 2023 was AED 58 million.
The Legacy portfolio consists of the Company’s existing mature investments with the goal of assessing potential monetisation
options. In 2022, the business commenced the implementation of the multi-year strategy to maximize shareholder value
across this portfolio. During H1 2023, the legacy portfolio has incurred mark to market losses of AED 16m. The net carrying
value of the legacy portfolio as of 30 June 2023 was AED 329 million.
7WAHA CAPITAL
Waha Land
Waha Land, a wholly owned subsidiary of Waha Capital, is developing “ALMARKAZ”, an integrated industrial development
with Grade “A” industrial/logistics facilities and first-class infrastructure. The development is in Al Dhafra, approximately 15
minutes from Mussafah, Abu Dhabi, and is well located to access the multi-modal industrial and logistics infrastructure (land,
sea, air, and rail) of the UAE. The development is on a 6 km2 land, granted by the Government of Abu Dhabi.
The development is envisioned to be completed in four phases with multiple stages in each phase. Phase 1, which comprises
of 25% of the total land area (1.5 km2), will be completed in three Stages. In Stage 1 and Stage 2A, circa 180,000 m2 of multi
use industrial/logistics units were completed along with the associated infrastructure like roads, utilities, and telecom. The
existing units are fully leased out, home to more than 85 tenants, both local and international entities, from diverse industry
segments such as Oil & Gas, Manufacturing, Defence, Logistics, IT, Contracting and F&B.
An expansion, “Stage 2B”, is currently under construction, which will add circa 75,000 m2 of premium industrial/logistics
facilities, with an expected close by Q3 2023. This expansion is in line with the Waha Land’s underlying ethos to execute a
consistent, disciplined investment approach with emphasis on institutional quality assets flexible to suit a variety of uses and
support a diverse range of tenants from different industry segments. Waha Land’s growth strategy is focused on continuing
to grow the leasable portfolio, developing new products and services for the UAE’s Industrial/Logistics market, in line with
dynamically evolving regional and global market dynamics.
During the period ended 30 June 2023, Waha Land reported total income of AED 23.6 million (2022: AED 25.4 million).
The carrying value of investment property was AED 818.8 million as at 30 June 2023, including AED 466.8 million classified
as held for sale.
OUTLOOK
Waha Capital remains committed to delivering strong and sustained returns for its shareholders and investors, as
demonstrated by another profitable quarter. Despite the increased economic and market uncertainty globally, the Company
has shown resilience and reported positive returns to-date thanks to its prudent approach. The Public Markets business has
continued to deliver robust results since inception, with the flagship funds continuing to outperform their benchmark indices
in 2023. The growth strategy for the Private Investments business has begun to yield results, with investments made and
growth achieved in the Global Opportunities and Core Portfolio, and the opportunistic monetization of mature assets under
the Legacy Portfolio.
Despite an anticipated uncertain macroeconomic environment ahead, driven by the combination of slow growth, high inflation,
and geopolitical risks, Waha Capital remains cautiously optimistic about the future. Active management of the funds, growing
the investor base, and preserving and scaling third party capital remain a priority for the Public Markets business for 2023.
Assessing and investing in a diverse pipeline of investments for the Global Opportunities and Core Portfolio and evaluating
opportunities for value crystallization of mature assets will remain priorities for the Private Investments business. Waha Land
will also maintain and continue executing its long-term strategy to develop, lease and monetize land and built assets at
ALMARKAZ. Underpinning this outlook is the Company’s continued focus on maintaining strong corporate governance,
protecting both shareholder and client assets, growing the asset base and achieving economies of scale across our balance
sheet.
8WAHA CAPITAL
Financial Results
Q2/H1 2023Waha Capital H1 2023 net profit up 221% year-on-year to AED 318
million on returns from capital markets funds and increased fee
income
Key highlights
Public Markets business generates net profit of AED 458 million, driven by increased
fee income and strong returns on proprietary investments in flagship funds
Private Investments business reports net loss of AED 27 million due to unrealised
revaluation losses on certain portfolio assets
Waha Land produces net profit of AED 16 million from rental income
Income H1 H1 % Q2 Q2 %
statement 2023 2022 Change 2023 2022 Change
highlights (YoY) (YoY)
(AED million)
Total 500 224 123% 259 (54) 580%
income
General & (121) (65) (86%) (59) (18) (228%)
operating expenses
Finance cost (61) (54) (13%) (30) (29) (3%)
Net profit/loss 318 99 221% 170 (101) 268%
Net profit 169 87 94% 94 (59) 259%
attributable to
shareholders
RETURN ON INVESTMENTS (1) ASSETS UNDER MANAGEMENT (2)
15.0 % AED 9.0bn
RETURN ON AVERAGE EQUITY (3)
RETURN ON AVERAGE ASSETS (4)
12.6 % 7.0 %
Notes:
(1): Based on trailing twelve months’ investment return
(2): As of 30 June 2023, including assets managed on behalf of third parties across all businesses
WAHA CAPITAL 2(3): Based on trailing twelve months’ contribution to Waha Capital shareholders
(4): Based on trailing twelve months’ contribution to all shareholders, including minorities
WAHA CAPITAL 3Waleed Al Mokarrab Al Muhairi
Chairm an
Waha Capital performed strongly in the first half of 2023, generating net profit of
AED 318 million and a return on average equity of 12.6%.
Despite challenging macroeconomic conditions, the emerging markets funds
managed by Waha Investment have delivered positive returns, further extending
their multi-year track record of outperformance. This has resulted in inflows of
AED 2.1 billion in third-party capital, which has contributed significantly to the
company’s fee income.
The Private Investments business remains strong and stable as it pursues a
flexible, opportunistic approach. The team’s global opportunities strategy and
active management of Waha Capital’s direct investments have been instrumental
in creating long-term value for stakeholders.
The Board of Directors recently appointed Mohamed Hussain Al Nowais as
Managing Director and is continuing to work closely with the senior leadership
team to implement a strategy for sustainable growth that will enhance
shareholder value in the coming years.
Mohamed Hussain Al Nowais
Managi ng Director
I am pleased to report that Waha Capital achieved a solid performance in the first
six months of this year, demonstrating the company’s resilience and financial
position. Our investment teams have continued to create value while managing
risk amid heightened uncertainty in global markets.
Our flagship emerging markets credit and equity funds have continued to deliver
exceptional returns to the company and our clients. We are attracting a high level
of interest among regional institutional investors and family offices, which is
translating into substantial capital commitments. Assets under management now
exceed US$2 billion, with third-party assets accounting for 57% of this total.
Meanwhile, the Private Investments team has applied a prudent approach to
capital deployment through its Global Opportunities strategy, providing exposure
to investments that are traditionally only within the domain of global institutional
investors. We expect that market disruption caused by a higher rate environment
will generate further attractive opportunities in the coming months.
Waha Land continues to generate steady income as it focuses on developing,
leasing, and monetising land and built assets at ALMARKAZ.
The combination of our core businesses represents a highly differentiated
proposition to stakeholders. We will continue to target long-term growth through
WAHA CAPITAL 4diversified income streams in order to reinforce Waha Capital’s status as the
premier asset management firm in the region.
Abu Dhabi, 28 July 2023: Waha Capital PJSC, an Abu Dhabi-listed investment management company
(ADX: WAHA), reported a 221% increase in net profit year-on-year to AED 318 million for H1 2023 -
equating to a return on equity of 12.6% - driven by healthy returns from its capital markets funds and
higher fee income from managing third-party assets.
The company recorded total operating income of AED 500 million in the first six months of 2023, an increase
of 123% from AED 224 million a year earlier. Income growth was primarily driven by the strong performance
of Waha Investment, a wholly owned asset management subsidiary, as its emerging markets funds continued
to deliver considerable returns and attract significant capital.
While the company has maintained strong cost discipline, operating expenses have increased due to
performance-based incentive compensation accruals, which have risen in line with investment results. Higher
benchmark interest rates have contributed to an increase in finance costs to AED 61 million from AED 54
million a year earlier.
For the second quarter, Waha Capital reported total income of AED 259 million and net profit of AED 170
million. Waha Capital’s total assets under management (AUM) stood at AED 9.0 billion at the end of June 2023,
versus AED 6.3 billion a year earlier.
In May 2023, the company’s Board of Directors appointed Mr. Mohamed Hussain Al Nowais as Managing
Director to lead the company through the next phase of its growth and development. Mr. Al Nowais, a Board
member at Waha Capital since 2018, has previously held roles at Abu Dhabi Investment Authority (ADIA) and
JPMorgan in New York. He is currently Managing Director of AMEA Power, Executive Director at AlNowais
Investments Company, and a board member for Al Dhafra Insurance Company PSC and Abu Dhabi National
Industrial Projects (ADNIP).
In line with Waha Capital's 2023 Corporate Social Responsibility (CSR) mandate, (as approved by shareholders
at the company’s March 2023 annual general assembly), the company is committed to establishing an
undergraduate scholarship program. The scholarship program will aim to offer eligible students, based in the
United Arab Emirates, valuable educational assistance and opportunities for practical work experience within
Waha Capital.
Waha Investment
Waha Investment, the capital markets business that actively manages emerging markets funds, achieved AED
481 million in net investment returns in the first half of 2023, while fee income from managing third-party
capital almost doubled year-on-year to AED 46 million. The business reported net profit of AED 458 million,
compared to AED 113 million a year earlier.
The company’s flagship credit and equity funds produced positive returns in the face of continued volatility
in global markets, continuing their exceptional multi-year track record of outperformance.
The Waha MENA Equity Fund achieved a total return of 10.5% versus 5.4% by its benchmark in the first six
months of the year. The fund has delivered a cumulative return of 321.4% since its inception in January 2014,
versus the S&P Pan Arab Composite Index’s return of 62.9%.
The Waha Emerging Markets Credit Fund, which pursues diverse long-short strategies in emerging markets
fixed income, recorded a total return of 3.8%, compared to 4.1% for its benchmark. The fund has delivered a
cumulative return of 189.2% since its inception in 2012, versus the JPMorgan EMBI Global Diversified Index
return of 45.0%.
WAHA CAPITAL 5The Waha Islamic Income Fund delivered a total return of 3.78% (gross of fees) versus a benchmark return of
2.03%. The fund, which mainly invests in global sukuk and Shari’ah-compliant equities, has recorded a
cumulative return of 19.4% (gross of fees) since its inception in August 2020, versus a -3.1% return by the Dow
Jones Sukuk Index.
Private Investments
The Private Investments business continued to pursue its fully flexible, opportunistic global mandate and
prudently deploy capital through its Global Opportunities multi-asset investment strategy. This portfolio
generated net profit of AED 9 million in the second quarter of 2023, which helped to offset the mark-to-market
losses incurred in the first quarter of 2023. Total assets under management in this portfolio were AED 511
million as of 30th June 2023.
The business continues to evaluate add-on opportunities through its Core Portfolio, which provides Waha
Capital with exposure to private investments in the MENA region with established track records. The growth
strategy of Waha Health, the company’s healthcare platform, is making progress and delivered a profit in the
first half of 2023. Assets under management in this portfolio were AED 58 million at the end of the first six
months of the year.
The Private Investments team continues to evaluate opportunities to monetise mature assets in order to
maximise shareholder value. This portfolio was impacted in the first half of 2023 by mark-to-market losses on
its shareholding in NESR. Total assets under management in this portfolio were AED 329 million as of 30th June
2023.
The business recorded a net loss of AED 27 million in the first half, versus net profit of AED 20 million year-on-
year, predominantly due to fair value adjustments on its NESR investment.
Waha Land
Waha Land, a wholly-owned subsidiary that develops, owns, and operates light industrial real estate assets,
recorded total revenue of AED 23 million in the first six months of 2023, driven by steady rental income.
The company has successfully developed and fully leased 17 warehouse buildings at the ALMARKAZ Industrial
Development, providing approximately 362,000 sq.m. of industrial space. Waha Land is currently developing
a further 136,000 sq.m of income-producing industrial properties at the site, in line with Abu Dhabi’s strategy
to advance its industrial and logistics sectors.
- ENDS –
About Waha Capital
Waha Capital is an Abu Dhabi-listed investment management company that leverages its emerging markets
expertise, business networks and research capabilities to deliver attractive returns to shareholders and
investors in its funds.
Founded in 1997, Waha Capital is one of the Emirate’s leading private sector investment houses, providing a
world-class platform for investment and growth. The company has a long-established track record of
investing in public and private markets, deploying proprietary capital in alignment with third-party investors.
WAHA CAPITAL 6The Public Markets business (operated by Waha Investment PrJSC, a wholly owned subsidiary) offers
sophisticated investors actively managed emerging markets credit and equities funds, via a disciplined
approach to investment and implementing distinctive strategies to deliver consistent market-leading returns.
The Private Investments business pursues a multi-asset investment approach focused on direct investments,
with the flexibility to deploy capital across diverse sectors and geographies. The business leverages extensive
international business networks to source deals and form co-investment partnerships.
Counting Mubadala Investment Company as an anchor shareholder, Waha Capital is at the forefront of Abu
Dhabi’s increasingly dynamic and entrepreneurial financial services ecosystem, creating long-term value for
shareholders, fund investors, employees, and communities.
Further Information for Media and Investors
For further information on Waha Capital and its investment capabilities, please visit wahacapital.com
For media enquiries, please contact: For investment enquiries, please contact:
Ameera Khalid Maher Mansour
Vice President, Investor Relations & External Head of Investor Relations & External
Communications Communications
Waha Capital Waha Capital
Tel: +971 2 403 9346 Tel: +971 2 403 9305
E-mail: communications@wahacapital.ae E-mail: investor.relations@wahacapital.ae
WAHA CAPITAL 7 | positive |
AL RAMZ CORPORATION PJSC
Al Ramz reports results for the first half of 2023 with robust financial standing and
strategic advancements
Dubai, 7 August 2023
Al Ramz Corporation Investment and Development PJSC, a Dubai Financial Market listed company offering a variety
of financial solutions including asset management, corporate finance, market making, prime brokerage, public
offering management and research. Al Ramz Corporation has consistently delivered superior shareholder value
since its establishment in 1998. The latest financial report showcases the Group’s dedication to excellence, with
remarkable achievements across various key metrics.
Key financial highlights for the period
The Group reported net profit of AED 13.7 million for the first half of 2023 compared to AED 22.2 million for the
same period of last year. Total revenues contracted to AED 53.2 million compared to AED 56.3 million last year as
target revenue pools in our markets tapered period on period. The first half of 2023 results reflected improvement
in several key financial captions compared to the same period last year and are summarized as follows:
PERIOD ON PERIOD FOR THE PERIOD PERIOD ON PERIOD FOR THE PERIOD
+46% 10.1 +25% 5.1%
MN
INTEREST INCOME INVESTMENT INCOME MARGIN LENDING RETURN ON EQUITY
Delivering on strategic priorities
Al Ramz continues to focus on cutting-edge development to enhance its trading platform, poised to revolutionize
the financial landscape. The platform will offer clients seamless access to an array of financial products and services.
In 2023, the Group refresh its medium-term strategy targeting all fronts with significant focus on offering innovative
value propositions across all business lines. The Group’s successful strategic partnerships across the region have
strengthened its market-making activities, expanding market presence and enhancing liquidity solutions for clients.
Managing Director comments
Commenting on the results, Mr. Mohammad Mortada Al Dandashi Group Managing Director said: "With profound
gratitude to our esteemed clients, partners, and shareholders, we deliver these results. The unwavering support
and visionary policies of the Government of the UAE have been instrumental in propelling our success. We remain
steadfast in our commitment to exceeding stakeholder expectations, upholding the highest standards of service and
innovation. As we continue to progress, we are confident in our strategic vision and commitment to financial
excellence, creating lasting value for all stakeholders."
-END-
ABOUT AL RAMZ
FOUNDED IN 1998, AL RAMZ IS A UAE DOMICILED PUBLIC JOINT STOCK COMPANY LISTED ON THE DUBAI FINANCIAL MARKET AND REGULATED BY THE UAE SECURITIES AND COMMODITIES
AUTHORITY AND THE DUBAI FINANCIAL SERVICES AUTHORITY.
FOR MORE:
PLEASE CONTACT INVESTOR RELATIONS I PHONE: +971262626261 E-MAIL: IR@ALRAMZ.AE I WEBSITE: WWW.ALRAMZ.AE | positive |
Press Release
Emaar Reports a 15% Net Profit Growth in H1 2023 and Group Property Sales of
AED 20.2 billion (US$ 5.5 billion)
• Emaar's property sales backlog reaches AED 62.8 billion (US$ 17.1 billion), set to boost
future revenue.
• Recurring revenue records growth of 11% in H1 2023, supported by increased tenant
sales and robust tourism recovery.
• S&P, Moody's, and Fitch upgraded Emaar's Credit Ratings to BBB, Baa2 and BBB,
respectively, with a stable outlook.
Dubai, United Arab Emirates – 10th August 2023: Emaar Properties PJSC (DFM: EMAAR) has
released its financial results for the first half of 2023, showcasing consistent performance and
operational efficiency across its various businesses.
Key Accomplishment Highlights
Emaar's recorded half-year 2023 revenues of AED 12.3 billion (US$ 3.3 billion) with net profit
growing by 15% compared to same period last year, reaching to AED 4.9 billion (US$ 1.3 billion).
The consistent performance was driven by the growth in tourism, retail sales, and sustained
real estate demand in Dubai. Emaar's focus on improving profit margins and operational
efficiencies resulted in achieving higher EBITDA, which grew by 5% to AED 6.4 billion (US$ 1.7
billion) compared to H1 2022.
Emaar achieved H1 2023 group property sales of AED 20.2 billion (US$ 5.5 billion), a 14% YoY
growth. Supported by incremental property sales, the company's revenue backlog from
property sales reached AED 62.8 billion (US$ 17.1 billion) as of 30th June 2023. This backlog
represents future revenue from property sales to be recognised over the next few years.
During the period, Emaar has received credit rating upgrades from major rating agencies S&P
(BBB), Moody's (Baa2) and Fitch (BBB), all with a stable outlook. These upgrades reflect Emaar's
financial performance and improved financial position. Overall, these positive indicators point
to a better outlook for Emaar's future.
Mohamed Alabbar, Founder of Emaar, said: "Emaar's recent performance reflects our ongoing
commitment to sustained profitable growth and in our focus on meeting the needs of our loyal
and new customers. Our investments have resulted in strong returns, driving our growth and
improving our operations. We are confident in our ability to continue executing our business
strategy and meeting customer demand as we move forward in the year."UAE Build-To-Sell Property Development
Emaar Development PJSC (DFM: EMAARDEV), a majority-owned subsidiary, achieved property
sales of AED 19 billion (US$ 5.2 billion) during the first half of 2023, reflecting a growth of 25%
over H1 2022. UAE build-to-sell operation reported H1 2023 revenue of AED 6.3 billion (US$ 1.7
billion) and successfully launched 16 new projects in the UAE. In June 2023, Emaar
Development also unveiled yet another master-planned development, "The Oasis", a luxury
lifestyle destination.
Shopping Mall, Retail and Commercial Leasing
In H1 2023, Emaar's shopping mall, retail, and commercial leasing operations reported an 8%
growth in revenue compared to the previous year, reaching AED 3.1 billion (US$ 844 million).
During the same period, the portfolio yielded an EBITDA of AED 3.2 billion (US$ 871 million), a
77% increase over H1 2022. This success is credited to robust tenant sales, which rose by
approximately 30% compared to H1 2022. Emaar Malls Management's prime mall assets
achieved an impressive occupancy rate of approximately 96%.
Emaar International
Emaar's international real estate operations reported property sales of AED 1.2 billion (US$ 327
million) and revenues totaling AED 1.3 billion (US$ 354 million) during the first half of 2023.
Primarily driven by operations in Egypt and India, revenues from international real estate
operations represent 11% of Emaar's total revenue.
Hospitality, Leisure, and Entertainment
In the first half of 2023, Emaar's hospitality, leisure, and entertainment divisions generated AED
1.6 billion (US$ 436 million) in revenue, marking an 18% increase from H1 2022. The growth
was driven by the steady recovery in the tourism industry and strong domestic spending.
Emaar's UAE hotels, including those under management, reported an average occupancy rate
of 70% in the first half of 2023. During the period, Emaar also announced the opening of its
newest hotel, Address Jabal Omar Makkah, featuring around 1,500 keys and conveniently
located at the heart of the holy city.
Recurring Revenue
Emaar's H1 2023 financial results show an 11% increase in recurring revenue compared to H1
2022. The company's recurring revenue-generating portfolio, including malls, hospitality,
leisure, entertainment, and commercial leasing, collectively generated AED 4.7 billion (US$ 1.3
billion) during H1 2023. This revenue represents 38% of Emaar's total revenue from these
businesses.
-Ends-Note to Editors:
About Emaar Properties
Emaar Properties PJSC, listed on the Dubai Financial Market, is a global property developer and provider
of premium lifestyles, with a significant presence in the Middle East, North Africa and Asia. One of the
world’s largest real estate companies, Emaar has a land bank of 1.7 billion sq. ft. in the UAE and key
international markets.
With a proven track-record in delivery, Emaar has delivered over 100,000 residential units in Dubai and
other global markets since 2002. Emaar has strong recurring revenue-generating assets with over
1,300,000 square meters of leasing revenue-generating assets and 38 hotels and resorts with over 9,600
rooms (includes owned as well as managed hotels). Today, 49 percent of Emaar’s revenue is from its
shopping malls & retail, hospitality, leisure, entertainment, commercial leasing, and international
businesses.
Burj Khalifa, a global icon, The Dubai Mall, the world's most-visited retail and lifestyle destination, and
The Dubai Fountain, the world’s largest performing fountain, are among Emaar’s trophy destinations.
Follow Emaar on: Facebook: www.facebook.com/emaardubai, Twitter: www.twitter.com/emaardubai,
Instagram: www.instagram.com/emaardubai.
For more information:
Emaar Marketing Department
Email: PR@emaar.aeEMAAR PROPERTIES PJSC
Consolidated Income Statement
(AED Millions)
For the period ended
30 Jun 2023 30 Jun 2022
Unaudited Unaudited % change
Revenue 12,268 13,575 (10%)
Cost of revenues (5,499) (6,744) 18%
Gross Profit 6,769 6,831 (1%)
Selling, marketing, general & administration and other expenses (1,287) (1,372) 6%
Other income, net 919 485 89%
Share of results from associates and joint ventures 4 168 (98%)
EBITDA 6,405 6,112 5%
Depreciation and Amortisation (728) (709) (3%)
Finance income / (expense), net 167 (168) 199%
Income tax expenses (96) (128) 25%
Minority interest (802) (807) 1%
Net profit for the period 4,946 4,300 15%
Earnings per share (AED) 0.56 0.53 6%
Mohamed Alabbar.......…………….………………………………
Date:- | positive |
Julphar
i in I I 2, . I '1 II
Gulf Pharmaceutical Industries
Discussion report and analysis of the board of directors of the listed public shareholding company
Date 10 November 2023
Name of the
Gulf Pharmaceutical Industries PSC Julphar
Listed Company
The period of
the financial
statements For Q3 2023
covered by the
report
1) Revenue in Q3’23 experience a decline of -12.0% vs. Q3’22 (-10.0% at constant
currency) to 366.0 mAED due to geopolitical and economical situations in Iraq,
Sudan, and currency devaluation in Egypt, affecting the quarter, mitigated by
continued strong revenue development in UAE and GCC region.
2) Amid the challenges, the revenue for the 9-month period remained stable, showing
a marginal decrease of 2.3% year-over-year to 1.2 billion AED (-0.2% at constant
currency), by properly balancing geographical presence.
3) During Q3, Julphar has delivered strong market performance with most of the GCC
countries growing at double digit across the geography.
4) Revenue through our pharmacy retail and whole sales operations, Planet
Pharmacies, continues to show a strong momentum, with YTD growth at 5%
compared to the same period in the PY, and reaching sales of 776.3 mAED.
5) Gross Margin development continues the positive momentum improving Quarter
over Quarter from 25.8% in Q2’23 to 27.7% thanks to focus on operational
improvement.
Overview of the
6) Julphar has recognized the impact of UAE Corporate Tax implementation amounting
main results
-5.6 mAED related to Purchase Price Allocation (PPA) adjustments carried on the
during the
Group’s consolidated statement relating to business combination undertaken in
financial period
UAE prior to 16 January 2023.
7) Reported EBITDA for 9M’23 reaches +74.7 mAED (6.1% on Net Sales), and 87.6 mAED
(7.1% of Net Sales) when adjusting from one off event related to impairment of
overdue receivables of Lebanon subsidized business and other one-time events.
8) Quarter over Quarter EBITDA, evolving from 8.2 mAED in Q2’23, to 21.2 in Q3’23, as
impact of the operational improvements, thanks to disciplined cost management,
and operational efficiencies.
9) Julphar continues making sustained progress on the following areas:
a. Delivering strong market share increase in core markets including United Arab
Emirates, GCC countries, with special emphasis in Kingdom of Saudi Arabia.
b. Continue delivering cost saving and efficiency initiatives resulting in lower cost
in G&A and S&D in relation to Sales compared to previous year when excluding
one time events.
c. Continue executing new product launches initiatives and increasing the
products pipeline.
Securities
AED nil
issued during
Page 1 of 3the financial
period
Summary of the
• Successful licensing and technology transfer agreement signed in the 1st half of
most important
the year Sunshine Lake Pharma to Pioneer Insulin Biosimilar Manufacturing in
non-financial
MENA
events and
• Strong development on our new product launches strategy, with 32 new
developments
products approved in different countries in 2023, which will be consequently
during the
launched in future periods.
financial period
• Company continues focusing on:
Summary of a. Continuous increase of the market share in core markets including United
operational Arab Emirates, Kingdom of Saudi Arabia and other GCC countries.
performance b. Continue implementing sustained cost saving initiatives.
during the c. Manufacturing excellence.
financial period d. New product launches and execution of the company’s product pipeline.
e. Implementing effective country risk mitigation plans for Sudan, Iraq Egypt
in mAED Q3’23 Q3’22 YoY Change 9M’23 9M’22 YoY Change
Summary of Net Sales 366.0 415.8 -12.0% 1225.4 1254.3 -2.3%
profit and loss Gross profit 101.2 124.7 -18.8% 344.0 399.1 -13.8%
during the
Net Income (Cont. oper.) -37.8 3.6 -1150.0% -79.9 8.9 -997.8%
financial period
EBITDA 21.2 48.0 -55.8% 74.7 132.2 -43.5%
EBITDA (% of net Sales) 5.8% 11.5% 6.1% 10.5%
Summary of • The total equity decreased to 831.40 mAED compared to 928.2 mAED (-96.8 mAED) in
financial Dec’22.
position as at • Equity decreases mainly driven by total net loss for the period of 86.2 mAED (including
the end of the discontinued operations) and the foreign currency translation reserve impact of -10.5
financial period mAED.
• Cashflow used in operating activities reached -21.4 mAED at September YTD,
Summary of
showing an improvement of 24.3 mAED vs same period last year.
cash flows
• During the current period, cashflows from financing activities reached 156.2 mAED,
during the
including the execution of the accordion rights for 150 mAED, in relation to the
financial period
existing long-term facility, as part of the plans for the Year 2023 and beyond.
• The total spending and global demand for medicines will increase over the next five
Expectations
years to approximately $1.9 trillion by 2027 (growth rate of 3-6%).
for the sector
• The highest volume growth is expected in Latin America, Asia, and Africa, driven by a
and the
mix of population growth and expanded access.
company's role
• Demand for innovative drugs will drive oncology spending almost double the current
in these
level.
expectations
Source: IQVIA Data (Jan 18, 2023)
Expectations
• UAE economy to grow by 3.5% in 2023, with the country’s non-oil economy
regarding the
projected to grow by a robust 4.5 per cent this year.
economy and
• The introduction of a 9 per cent corporate tax this year, following the adoption of a 5
its impact on
per cent value-added tax (VAT) in 2018, contributes to bolstering public finances,
the company
contributing to supporting macroeconomic stability.
and the sector
Page 2 of 3Source: GULF BUSINESS SEPTEMBER 3, 2023, UBS
The plans for growth of the Company are as follows:
1. Continued focus on the strategic areas of business.
Future plans for 2. Strengthen sales organization in core markets and increase market share with the
growth and existing portfolio.
changes in 3. New alliances and partnerships to strengthen the product portfolio of the
operations in Company.
future periods 4. Launch new products in core therapeutic areas.
5. Invest in capital expenditure new manufacturing technologies and improve
operations efficiency
The size and
The Company continues to invest in capital expenditure for achieving targeted growth
impact of
and sustained performance by:
current and
1. Expanding the product portfolio with investing in new product dossiers
projected
2. Continuing upgrading the existing production facilities, to continue keeping highest
capital
quality standard levels and efficiency.
expenditures
3. Redesigning current processes to address evolving requirements from government
on the
authorities
company
The
developments
of the
implementation
of projects,
plans and
transactions
The implementation of the following projects have been discussed in the Board of
and deals that
Directors’ meetings:
were discussed
1. Progress on divestment of non-core areas of business.
by the
company's
board of
directors in the
report for the
previous fiscal
year
The name of the
chairman of the Sheikh Saqr Humaid AlQasimi
company
Signature and Date 10 November 2023
Company’s Seal
Page 3 of 3 | positive |
I
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1
TECOM GROUP H1 2023 REVENUE SURPASSES AED 1 BILLION WITH
NET PROFIT UP 13% AS BOARD APPROVES AED 400 MILLION
INTERIM CASH DIVIDEND
• H1 2023 Revenue tops AED 1 billion, up 6% YoY, driven by 87% occupancy rate attributable to high
retention rate and adding more than 1,500 new customers
• H1 2023 Net Profit increased 13% YoY to AED 485 million on the back of strong top line growth across all
core business segments, enhanced operational efficiency, improved leverage position and lower cost of
debt
• H1 2023 EBITDA increased by 14% on improved operating efficiencies across the Group, a reflection of
improved revenue quality
• Continued year-on-year increase in funds from operations (FFO) to AED 678 million in H1 2023
• Recent refinancing of existing AED 7.6 billion loan facility at more favourable terms and lower interest
margin strengthens Group’s cash flow, lowers financial costs, and improves leverage position as well as its
profitability
• In line with Dividend Policy, Board of Directors approved an interim cash dividend payment of AED 400
million to be distributed in September 2023 based on H1 2023’s strong performance
Dubai, UAE, 1 August 2023 – TECOM Group PJSC (DFM: TECOM), (the “Company” or the “Group”), the
creator of specialised business districts and vibrant communities, today announced its financial results for
the second quarter (Q2) and first half of the year (H1) ending 30 June 2023. The Group delivered a strong
performance driven by sustained high occupancy levels across its diverse high-quality portfolio, reporting
a 6% year-on-year (YoY) increase in revenue to AED 1.05 billion and a 13% YoY increase in net profit to
AED 485 million in H1 2023.
Financial Highlights
AED ‘000s %Change %Change
H1 2023 H1 2022 Q2 2023 Q2 2022
(Unless otherwise stated) (YoY) (YoY)
Revenue 1,048,872 989,417 6% 535,088 504,306 6%
EBITDA 824,580 722,858 14% 425,775 373,423 14%
EBITDA Margin 79% 73% 6% 80% 74% 6%
Net Profit 484,501 427,533 13% 229,368 237,271 (3%)
Adjusted Net Profit* - - - 282,663 237,271 19%
*Excluding the one-off impact from fees associated with refinancing loan facility
Operational Highlights
Commercial and Industrial 30 June 2023 30 June 2022 YoY%
Occupancy Level 87% 82% 5%
Number of Customers +10,000 +8,500 18%Malek Al Malek, Chairman of the Board, TECOM Group, said: “TECOM Group continued to deliver
strong financial and operational performance owed to our dynamic strategy
which aims to further increase our occupancy levels across the portfolio while
also maintaining prudent capital management. Our performance was
underpinned by Dubai’s robust economy and its visionary leadership. On the
back of our exceptional results, I am pleased to announce that the Board has
approved an interim dividend distribution of AED 400 million to shareholders
for the first half of this year, to be distributed in September 2023.”
Abdulla Belhoul, Chief Executive Officer, TECOM Group, said: “Commercial real estate in Dubai is
growing at a steady pace owing to Dubai’s appeal as a global city to businesses,
talent and investors alike and to its macroeconomic resilience. Our robust
business model and our business districts’ market reputation have enabled
TECOM Group to capitalise on the strong demand, supporting our solid
performance during the period. The vast majority of our leased assets,
especially Grade A centrally located offices, have recorded high occupancy
rates.
“We are confident in our ability to sustain occupancy levels for the remainder of the year while also
focusing efforts to drive further efficiencies to sustain the strong EBITDA margin. We will continue to
execute our clear strategy, supported by our robust financial position, top-notch talent, and access to
strategically located land bank to help unlock greater value for our shareholders.”
H1 2023 Financial Highlights
• Revenue in H1 2023 increased by 6% YoY to AED 1.05 billion, supported by the continued growth
in rental rates and the sustained strong occupancy level and customer retention rate across all
business districts.
o The occupancy level for commercial and industrial assets was 87% as of 30 June 2023,
registering a 5% increase from the period ended 30 June 2022.
o The overall customer retention rate stood at 92% as of 30 June 2023.
o 18% YoY increase in number of customers, surpassing 10,000 customers including leading
multinational and regional companies.
o Some of the most noteworthy new customers include Salesforce, which established its first
Middle East office, as well as pharmaceutical giant AstraZeneca, biotechnology company
Virax Biolabs Group, business school EM Normandie, F&B supplier and manufacturer IFFCO
Group (THRYVE™ factory).
• EBITDA increased by 14% YoY to AED 825 million, mainly driven by improved revenue quality and
enhanced management of operating expenses.
• Net profit grew by 13% YoY to AED 485 million, underpinned by strong top-line performance,
continued growth across all business segments, enhanced operational efficiencies, improved
leverage position and lower total financing cost.
• Funds from operations (FFO) stood at AED 678 million, representing an increase of 8% YoY, a
testament to improved revenue quality and operational efficiency across all income-generating
assets.Q2 2023 Financial Highlights
• Revenue in Q2 2023 increased by 6% YoY to AED 535 million and also registered a solid sequential
growth on the sustained demand across Group’s portfolio.
• EBITDA grew by 14% YoY to AED 426 million, impacted positively by ongoing efforts to reduce
operating expenses and drive operational efficiencies.
• Net profit for the three-month period increased by 19% YoY to AED 283 million, excluding the
impact of the one-off expense related to settling the old loan facility.
• The Group’s debt profile has improved with loan-to-value (LTV) ratio of 15% and a 5.7x EBITDA
to interest ratio, on the back of the immediate positive impact of the recent refinancing of the
existing AED 7.6 billion loan facility, which was refinanced at lower margins and more favourable
terms.
H1 2023 Key Business Highlights
TECOM Group has had a very active year across most of its business districts, a reflection of the strong
level of business confidence.
• In line with the rising demand for purpose-built and well-connected workspaces, TECOM Group
expanded its D/Quarters co-working solutions to Dubai Science Park, strengthening the position
of the Emirate as a magnet for global talent and businesses of all sizes and from any sector.
• The Group continued to enable the entrepreneurial ecosystem in Dubai by launching a science-
focused incubator in collaboration with Dubai Science Park. in5 Science will support startups
under the Dubai Economic Agenda D33 umbrella.
• Virax Biolabs Group announced the establishment of its regional headquarters at Dubai Science
Park, further strengthening the region's scientific research and biotechnology landscape.
• Dubai Industrial City contributed further to the Emirate's economic growth by attracting
approximately AED 1 billion in investments from local and global manufacturing companies,
reflecting the confidence in the business district and Dubai as a strategic destination for
manufacturing and industrial activities.
• Dubai Industrial City signed major strategic partnerships with the Ministry of Industry and
Advanced Technology (MoIAT), the Ministry of Climate Change and Environment (MOCCAE), the
Emirates Development Bank (EDB), and Dubai’s Department of Economy and Tourism (DET) to
support the sustainable development of the manufacturing sector in the UAE and strength its
position as an attractive global industrial hub.
H1 2023 Key ESG Highlights
During the first six months of the year the Group made good progress on several ESG matters, of note:
• Continued to deliver value to customers, with customer satisfaction levels increasing to 88.6% in
H1 2023 from 87.8% in FY 2022.
• Supporting 366 startups, as part of in5, up from 346 startups as at end of FY 2022.
• 9% of the energy consumption was generated by clean energy sources.
• 179 tonnes of waste was recycled across all business districts.
• Distributed 12,000 meals during holy month of Ramadan.
• Partnered with Emirates Red Crescent to launch “The Good Store”, a virtual store encouraging
people to donate essential supplies such as food, clothing and shelter materials.Dividend
During its meeting held on 1 August 2023, the Board of Directors approved the first interim dividend
payment of AED 400 million, which will be distributed in September 2023. As per the dividend policy set
out in the IPO prospectus, TECOM Group is committed to paying a total dividend amount of AED 800
million per annum through September 2025.
---ENDS---
Note to Editors
Definitions
TECOM Group has an integrated portfolio of real estate assets, spread across 10 strategically located business districts
in Dubai. These business districts serve six industry sectors. We refer to each sector we serve as a Cluster, which
consists of one or more business districts operating in the same industry.
• Technology Cluster: Consists of Dubai Internet City and Dubai Outsource City.
• Media Cluster: Consists of Dubai Media City, Dubai Studio City and Dubai Production City.
• Education Cluster: Consists of Dubai International Academic City and Dubai Knowledge Park.
• Science Cluster: Consists of Dubai Science Park.
• Design Cluster: Consists of Dubai Design District.
• Manufacturing Cluster: Consists of Dubai Industrial City.
More broadly, the Group provides real estate solutions across three segments: Commercial Leasing, Land Leasing and
Industrial Leasing.
• Commercial Leasing. TECOM Group provides state of the art built-to-lease (BTL) and built-to-suit (BTS)
properties across office and retail spaces including purpose-built business centres and HQs tailored to
customer specifications as well as industry specialised facilities (e.g. sound stages, film studios, university
campuses, lab facilities, etc.). Typically, BTL properties have a lease term of one to five years and BTS
properties have lease terms of 10 years and over.
• Industrial Leasing. Warehouse space, showrooms and worker accommodation facilities utilised by large
corporates and other businesses to accommodate their employees. Typically, lease terms for Industrial
Leasing are one to five years.
• Land Leasing. Available land within our various business districts for which infrastructure (e.g. roads, water,
electricity, sewage) is already in place or will be put in place allowing us to lease the land or utilise it for our
planned future investments. Typically, lease terms for Land Leasing are between 30 to 50 years.
TECOM Group also provides an array of value-added government and business services (e.g. visa, immigration,
licensing, etc.) including services promoting individual talent, startups and entrepreneurship through our dedicated
platforms axs, in5, gofreelance, marketplace.ae and D/Quarters respectively, as well as advertising, property and venue
management services specific to each industry/district. Collectively, we refer to these services as Services & Others.
MEDIA ENQUIRIES INVESTOR RELATIONS ENQUIRIES
TECOM Group Mutaz Albadri Ghaith Zghaibi
media@tecomgroup.ae ir@tecomgroup.ae
Brunswick Group tecomgroup@brunswickgroup.comFFIINNAANNCCIIAALL HHIIGGHHLLIIGGHHTTSS
HH1122002233 HH1122002222
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TTEECCO6MM GGRROOUUPP | positive |
Management
discussion and
Analysis Report
For the Quarter ended
30th Jun 2023FFiinnaanncciiaall PPeerrffoorrmmaannccee SSuummmmaarryy
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7
Financial Performance Summary
• National Bank of Umm Al-Qaiwain has recorded a net profit of AED 255 million for Q2 of 2023.
• Net profit has increased by 54% compared to AED 165 million for Q2 of 2022 due to improving external environment and effective cost optimization strategies.
• Cost-to-income ratio is 20.58% compared to 29.38% in Q2 of 2022, improved by 880 basis points year on year, which reflect the Bank’s operational
efficiencies and disciplined cost management.
• Impairment coverage ratio including collateral improved to 254% as of 30 June 2023 from 183% as of December end.
• Total assets of the group reached to AED 14.06 billion as of 30 June 2023, up by 3% compared to Dec 2022, while maintaining deposits to net advances ratio
prudently at 129%.
• Capital Adequacy Ratio stood at 46.00% as of 30 June 2023, which continues to be well over the minimum threshold stipulated by Central Bank of the UAE in
accordance with Basel III guidelines. This provides opportunities to leverage. Common Equity Tier I ratio is maintained strongly at 44.86%.
• Bank has maintained Eligible Liquid Assets Ratio 32.64% as of 30 June 2023, Lending to Stable Resource Ratio as of 30 June 2023 stood at 59.35%.
• Non- Performing ratio improved to 7.80% from 9.46% at December 2022 end.Chief Executive Officer
Mr. Adnan Al Awadhi said, the outstanding financial results achieved in the second quarter of 2023 are a testament to
the collective efforts of our dedicated employees, the trust of our customers and the unwavering support of our
stakeholders. We will continue to invest in cutting-edge technologies to enhance our digital capabilities, develop
innovative products and services and stay ahead of customer expectations.
He further added, looking ahead together, we will navigate the challenges ahead and seize the opportunities to achieve
sustainable growth and long-term success for NBQ. As we move forward, we must remain vigilant and adapt swiftly to
the evolving market dynamics, while continuing to focus on key strategic priorities including growth and expansion.Credit Rating
\
i
Moody’s Rating Capital Intelligence Rating
Bank Deposits-long term (Local Currency ) Baa2 Foreign Currency Rating-short term A2
Bank Deposits-short term (Foreign Currency ) Baa2 Foreign Currency Rating-Long term A-
Baseline Credit Assessment ba2 Bank Standalone rating bbb
Adjusted Baseline Credit Assessment ba2 Core Financial Strength bbb-
Counterparty Risk Assessment-Short term P-2(cr) Extraordinary Support Level High
Baa1(cr) Bank Standalone Outlook Stable
Counterparty Risk Assessment-Long term
Outlook Stable
#
NThank you | positive |
0
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PPaaggee 11 ooff 33Zoho Sign Document ID: 2A8F7BDB-4QDF93HQ_MOCYBFGPLS8J7DDBBQI28NNS27RNXSTFIS
Ca)
cLj_tjj
0.44111.1J 911 gJ
I
ALWATHBA NATIONAL INSURANCE CO
Summary of AED Million Q1-2023 Q1-2022 Var
Net Insurance service result (807) 6,292 (7,099)
profit and loss
Net Investment Income 44,512 31,260 13,252
during the Net Insurance finance income and expenses 221 (239) 460
Total Income 43,926 37,313 6,613
financial period
Other Operating income /expenses net 651 1,657 (1,006)
Profit for the period 44,577 38,970 5,607
Summary of
financial Total Deposits & Cash: AED 145 M
position as at Total Assets: AED 1.61 billion
the end of the Total Share Holders Equity: AED 1.01 billion
financial period
Summary of
Net Cash generated from operating Activities: AED (2.55) M
cash flows
Net Cash Generated in Investing Activities: AED 63.88 M
during the
Net Cash Generated in Financing Activities: AED (19.72) M
financial period
Main Net Loss Ratio: 96.53%
performance Net Expense Ratio: 36.69%
indicators Combined Ratio: 133.23%
Expectations for
the sector and We have noticed that the motor insurance premiums have started to pull back
the company's closer to pre-covid levels. This is expected to have positive impact on the results
role in these of insurers going forward
expectations
Expectations
UAE GDP growth is projected to increase to 4.3 per cent in 2024, owing to a better
regarding the
performance in both the oil and non-oil sectors. Despite the sharp rise of
economy and its
inflation globally in light of the pressures on supply chains and the rise in
impact on the
commodity prices, inflation in the UAE remained well below the international
company and
average at 4.8 per cent with an expected decline in 2023
the sector
Future for
growth and
AWNIC is revisiting its business strategy with added focus on building a niche
changes in
portfolio and selected segments in Motor insurance.
operations in
future periods
Page 2 of 3Zoho Sign Document ID: 2A8F7BDB-4QDF93HQ_MOCYBFGPLS8J7DDBBQI28NNS27RNXSTFIS
The size and
impact of
current and
projected Net Capital expenses for the period was AED 223 K
capital
expenditures on
the company
The
developments
of the
implementation
of projects,
plans and
transactions
and deals that AWNIC has continued deleveraging its balance sheet considering the rising
were discussed interest rates.
by the
company's
board of
directors in the
report for the
previous fiscal
year
Bassam Chilmeran
Chief Executive Officer
-F.- -0
Ialsm
*M MO"-
Page 3 of 3 | positive |
Yahsat First Half Revenues Up by 8.1% to record levels, with
Net Income Increasing by 50.7%
Abu Dhabi, United Arab Emirates, 9 August 2022: Al Yah Satellite Communications Company PJSC
(“Yahsat” or “the Group”) listed on the Abu Dhabi Securities Exchange (“ADX”) under
(SYMBOL: YAHSAT) (ISIN: AEA007501017), the UAE’s flagship satellite solutions provider, today
announced its financial results for the six-month period ended 30 June 2022 (“1H22”).
1H22 Highlights
Revenue of AED 755 million [USD 206 Strong financial position and high visibility
million], up 8.1% year-on-year, on future cash flows underpin ability to invest
underpinned by double-digit growth in in growth and sustain attractive dividend
Managed Solutions and Mobility Solutions policy
Adjusted EBITDA of AED 448 million On track to grow FY2022 dividend by at
[USD 122 million], up 5.3% year-on-year, least 2% to 16.12 fils [USD 4.39 cents] per
delivering a robust margin of 59.3% share or AED 393 million [USD 107 million],
split into two equal installments payable
Net Income of AED 167 million [USD 45
around October 2022 and May 2023
million], up 50.7% year-on-year, driving a
strong net margin of 22.1% Lower end of FY2022 revenue guidance
increased to AED 1,542 million [USD 420
Contracted future revenue of more than
million] from AED 1,524 million [USD 415
AED 7.7 billion [USD 2.1 billion], equivalent
million]; all other guidance remain
to 5.2 times FY2021 annual revenue
unchanged
Musabbeh Al Kaabi, Chairman of Yahsat, commented:
“Against a backdrop of challenging global economic headwinds, we are delighted to record our highest ever
first-half revenue whilst significantly growing Adjusted EBITDA and net income. This reflects the strength
of our business underpinned by strong contracted future revenue and positive momentum across operating
segments. In light of our strong year-to-date performance, the Board of Directors’ confidence in future cash
flow generation, ability to grow the business and financial strength of the Company, we are reiterating our
commitment to deliver attractive shareholder returns.”
Ali Al Hashemi, Group Chief Executive Officer of Yahsat, commented:
“Yahsat has delivered exceptional results, recording its highest-ever first half revenue and demonstrating
our performance-driven culture to deploy innovative capabilities and grow the business. Our contracted
future revenue exceeds AED 7.7 billion, equivalent to 5.2 times FY2021 annual revenue. Looking ahead,
we remain on track to bring into commercial service our Next Generation Satellite, Thuraya 4-NGS, in the
second half of 2024 whilst two new satellites, Al Yah 4 and Al Yah 5, are under consideration for launch in
2026. We remain very confident in both our short-term and long-term outlook, and have accordingly
increased the lower end of our revenue guidance for FY2022, whilst reiterating our commitment to pay a
progressive dividend.
We remain committed to pursuing and launching new growth opportunities across the business and we are
confident that Yahsat’s robust balance sheet, business resilience and track record in delivering exceptional
results will enable us to capture significant value to drive long-term growth.”
Page 1 of 8Strong first-half results
Yahsat’s growth momentum continued in 2Q22 with revenue of AED 392 million [USD 107 million], an
increase of 6.9% year-on-year. This resulted in 1H22 revenue growth of 8.1% year-on-year to AED 755
million [USD 206 million]. Both Managed Solutions and Mobility Solutions performed exceptionally well with
1H22 revenues increasing by 35.1% and 24.1% respectively.
2Q22 Adjusted EBITDA of AED 235 million [USD 64 million] increased by 3.9% year-on-year, generating a
healthy margin of 59.8%, while net income (profit attributable to the shareholders) of AED 93 million [USD
25 million] increased by 77.9% year-on-year. On a year-to-date basis, the Group recorded 1H22 Adjusted
EBITDA growth of 5.3% and an increase in net income of 50.7%, resulting in a solid net income margin of
22.1%.
As at 30 June 2022, the Group’s contracted future revenue remained strong at more than AED 7.7 billion
[USD 2.1 billion], equivalent to around 5.2 times FY2021 annual revenue representing an increase of 4.1%
since the start of the financial year, underpinned by the 5-year AED 909 million [USD 247 million] managed
services mandate awarded by the UAE Government in February 2022.
Attractive dividend outlook
Yahsat reiterates its commitment to grow its dividend by at least 2% per year, reflecting the Board of
Directors’ confidence in the cash flow generation and overall financial strength of the business. For financial
year 2022, the total expected dividend is a minimum of 16.12 fils per share [US Cents 4.39], split into two
equal instalments payable around October 2022 and May 2023 respectively. This represents a total
dividend payment of AED 393 million [USD 107 million]. The Company’s dividend policy is well supported
by its high cash conversion (93.1% in 1H22), robust balance sheet (0.9x Net Debt/EBITDA as at 30 June
2022) and a strong discretionary free cash flow1 (expected to be approximately two times FY2022 dividend
payment).
Increasing minimum revenue guidance
In view of the strong 1H22 performance and considering that approximately 90% of the remaining projected
revenue for FY2022 is already secured (based on the low end of its revenue guidance), Yahsat has decided
to narrow the range of its FY2022 guidance provided on 1 March 2022. The Company now raises its
projected 2022 revenues to at least AED 1,542 million [USD 420 million] with the upper end of the range
unchanged at AED 1,616 million [USD 440 million]. All other guidance remain unchanged.
Senior management appointment
On 1 July 2022 (a post-period event), Yahsat announced the appointment of Mr. Sulaiman Al Ali as Chief
Commercial Officer (“CCO”). Mr. Al Ali has assumed the role having been with Yahsat for eight years,
previously serving as a Director of Yahsat Government Solutions and later as CEO of Thuraya, where he
has been instrumental in driving operational excellence and delivering new and innovative solutions for
customers, establishing a platform for strong future growth. In his new role, Mr. Al Ali will lead both YahClick,
Yahsat’s Data Solutions arm, and Thuraya, with a mandate to drive synergies and growth across these
commercial businesses, creating value for customers and partners. He takes over from Mr. Farhad Khan,
who spent six years in the role and was a key player in the expansion of the YahClick business in new and
existing markets.
1 Refer to Alternative Performance Measures in Appendix for definition
Page 2 of 8MANAGEMENT DISCUSSION & ANALYSIS
Financial Overview
AED millions 2Q22 2Q21 Change % 1H22 1H21 Change %
Revenue 392 367 6.9% 755 698 8.1%
Adjusted EBITDA 235 226 3.9% 448 426 5.3%
Adjusted EBITDA Margin % 59.8% 61.5% 59.3% 60.9%
Net Income (Profit attributable to the
93 52 77.9% 167 111 50.7%
shareholders)
Net Income Margin % 23.6% 14.2% 22.1% 15.8%
Normalized Net Income
93 78 19.2% 167 136 22.3%
(Profit attributable to the shareholders)
Discretionary Free Cash Flow (109) (124) 11.8% 224 192 16.6%
Cash and short-term deposits 1,370 1,470* -6.8%
* as at 31 December 2021
Results by Operating Segments
Revenue (AED millions) 2Q22 2Q21 Change % 1H22 1H21 Change %
Infrastructure 218 220 -1.1% 435 440 -1.1%
Managed Solutions 88 62 41.4% 144 107 35.1%
Mobility Solutions 66 61 7.8% 134 108 24.1%
Data Solutions 20 23 -12.0% 42 43 -4.4%
Total Revenue 392 367 6.9% 755 698 8.1%
Infrastructure
Infrastructure accounted for approximately 55% of Group revenue in 2Q22, mainly comprising a 15-year
long-term Capacity Services Agreement with the UAE Government. Overall revenue remained broadly
stable at AED 218 million [USD 59 million]. The Infrastructure business offers strong visibility on future cash
flows with contracted future revenue of approximately AED 6.5 billion [USD 1.8 billion] as of 30 June 2022,
which includes a 15-year T4-NGS Capacity Service Agreement worth AED 2.6 billion [USD 708 million] that
will support revenue growth from 2024 onwards. Yahsat remains well-positioned to further grow its
Infrastructure business with two potential new satellites under consideration (Al Yah 4 and Al Yah 5),
targeted for launch in 2026.
Managed Solutions
Managed Solutions, which contributed approximately 22% of Group revenue, continued its strong
performance with 2Q22 revenues increasing by 41.4%, resulting in 1H22 revenue of AED 144 million [USD
39 million], an increase of 35.1% year-on-year. This was underpinned by the February 2022 award of a 5-
year mandate worth AED 909 million [USD 247 million] focused on providing enhanced managed services
to the UAE Government for its satellite communication capabilities, effective from January 2022. During the
1H22 period, AED 86 million [USD 23 million] of this award was recognized. In 2Q22, the business
continued to build its contracted future revenues with the award of other contracts including a mandate to
design and deliver advanced satellite communications for UAE Government platforms worth AED 28 million
[USD 8 million]. Management expects the strong momentum in the Managed Solutions business to continue
in the second half of 2022.
Page 3 of 8Mobility Solutions
Mobility Solutions, accounting for approximately 17% of Group revenue, had another excellent quarter with
2Q22 revenues up 7.8% year-on-year. 1H22 revenues exceeded the prior year by 24.1% with strong growth
in both service and equipment revenue. Service revenue increased by 6.5% with double digit increases
across several parts of the business including Voice, Data and Intercarrier. Meanwhile, equipment revenue,
which increased by 95%, continued to benefit from the three-year AED 316 million [USD 86 million]
distribution agreement secured in 2021.
Data Solutions
YahClick, which accounted for approximately 5% of Group revenue, saw year-on-year revenue slightly
down by 4.4% in 1H22, mainly due to the wind-down in July 2021 of a multi-year, opportunistic capacity
deal that contributed AED 8 million [USD 2 million] of revenue in 1H21. The business continued to build
strong foundations for future growth with the subscriber base in the Consumer Broadband business growing
by 11% year-to-date and by 24% compared to the same period last year, underpinned by expansion across
the Africa region. In addition, it concluded an agreement to connect schools across Zimbabwe, rolled out
several cellular backhaul projects and signed a number of new managed network service orders.
Balance Sheet & Cashflow
The Group’s balance sheet remained robust. At 30 June 2022, net debt stood at AED 812 million [USD 221
million] with a leverage ratio (Net Debt to Adjusted EBITDA) of 0.9x. Together with Discretionary Free Cash
Flow for the period of AED 224 million [USD 61 million] and a cash conversion ratio of 93.1%, the Group is
well positioned to meet its growth and capital expenditure commitments and to sustain its attractive dividend
policy.
Guidance Update
Financial KPI 2022 Guidance
Previous – 1 March 2022 Updated – 9 August 2022
AED 1,524 – 1,616 million AED 1,542 – 1,616 million
Gross revenue
[USD 415 - 440 million] [USD 420 - 440 million] (narrowed)
Adjusted EBITDA Stable Stable (unchanged)
Discretionary Free AED 771 – 881 million AED 771 – 881 million
Cash Flow (‘DFCF’) [USD 210 - 240 million] [USD 210 - 240 million] (unchanged)
Capex and AED 771 – 845 million AED 771 – 845 million
Investments2 [USD 210 - 230 million] [USD 210 - 230 million] (unchanged)
Approximately 90% of 2022 projected Capex and Investments, equating to about AED 735 million [USD
200 million], is related to the T4-NGS program, for which funding arrangements are already in place.
-Ends-
2 ‘Investments’ refer to investments in associates, net of any dividends received, and capital returned.
Page 4 of 8Earnings Conference Call
The earnings announcement for the three months and six months ended 30 June 2022 can be found on
the Company’s website at https://www.yahsat.com/.
A conference call to discuss earnings, followed by a Q&A session, has been scheduled for Tuesday, 9
August 2022 at 16:00 (GST) / 13:00 (BST) / 8:00 (EDT). The call will be hosted by Ali Al Hashemi (CEO),
Andrew Cole (CFO), Amit Somani (CSO) and Yugesh Suneja (AVP Investor Relations). Interested parties
are invited to join the call by clicking here.
APPENDIX
USD Financial Highlights
Revenue by operating segment and year-on-year comparisons are provided in the table below.
USD millions 2Q22 2Q21 Change % 1H22 1H21 Change %
Infrastructure 59 60 -1.1% 119 120 -1.1%
Managed Solutions 24 17 41.4% 39 29 35.1%
Mobility Solutions 18 17 7.8% 36 29 24.1%
Data Solutions 6 6 -12.0% 11 12 -4.4%
Total Revenue 107 100 6.9% 206 190 8.1%
A financial overview for the three months and six months ended 30 June 2022 and year-on-year comparison
are provided in the table below.
USD millions 2Q22 2Q21 Change % 1H22 1H21 Change%
Revenue 107 100 6.9% 206 190 8.1%
Cost of revenue (12) (9) -37.6% (22) (13) -62.2%
Staff costs (21) (21) 0.0% (42) (41) -2.6%
Other operating expenses (11) (10) -11.4% (21) (21) 0.9%
Other Income 1 1 -24.9% 1 1 -6.1%
Adjusted EBITDA 64 61 3.9% 122 116 5.3%
Adjusted EBITDA Margin % 59.8% 61.5% 59.3% 60.9%
Net Income (Profit attributable
25 14 77.9% 45 30 50.7%
to the shareholders)
Normalized Net Income (Profit
25 21 19.2% 45 37 22.3%
attributable to the shareholders)
Discretionary Free Cash Flow (30) (34) 11.8% 61 52 16.6%
Cash and short-term deposits 373 400* -6.8%
* as at 31 December 2021
Page 5 of 8Alternative Performance Measures
Yahsat regularly uses alternative performance measures which are relevant to enhance the understanding
of the financial performance and financial position of the Group. These measures may not be comparable
to similar measures used by other companies; they are neither measurements under IFRS nor any other
body of generally accepted accounting principles and thus should not be considered as substitutes for the
information contained in the Group’s financial statements.
Alternative Performance Definition
Measure
Earnings from continuing operations before interest, tax,
depreciation, amortisation, impairment, fair value adjustments on
Adjusted EBITDA
investment property and share of results of equity-accounted
investments
Adjusted EBITDA Margin Adjusted EBITDA divided by Revenue
Adjusted EBITDA minus additions to intangible assets,
Operating Free Cash Flow development and maintenance related capital expenditure,
excluding capital work-in-progress
Cash Conversion Ratio Operating Free Cash Flow divided by Adjusted EBITDA
Net cashflow from operations less (a) Maintenance and
Discretionary Free Cash Flow’ Development CapEx, (b) Investments, (c) Net finance costs and (d)
(‘DFCF’) Advances from customers on long term capacity contracts (e.g. T4-
NGS).
Net Income Profit attributable to the shareholders
Profit attributable to the shareholders, adjusted for material one-off
items. 1H21 Normalized Net Income of AED 136 million [USD 37
million] is after adjusting for the one-off costs relating to the
Normalized Net Income refinancing exercise which completed in June 2021, notably the
termination of interest rate hedges (+AED 19 million [+USD 5
million]) and accelerated recognition of unamortized finance costs
(+AED 7 million [+USD 2 million]).
Net Income (profit attributable to the shareholders) divided by
Net Income margin
Revenue
Normalized Net Income margin Normalized net income divided by Revenue
Financial numbers presented in millions are rounded to whole numbers while those presented in billions
are rounded to one decimal place. All percentages are rounded to one decimal place. Financial numbers
and percentages have been derived from underlying numbers. The numbers in UAE Dirhams (AED) have
been derived by converting the underlying US Dollar (USD) values using a standard exchange rate of 1
USD = AED 3.6725 and rounded. Due to rounding, numbers presented may not add up precisely to the
totals provided and percentages may not precisely reflect the absolute figures.
Page 6 of 8About Yahsat
Al Yah Satellite Communications Company PJSC (Yahsat) is a public company listed on the Abu Dhabi
Securities Exchange (ADX) and a subsidiary of Mubadala Investment Company PJSC, offering multi-
mission satellite solutions in more than 150 countries across Europe, the Middle East, Africa, South
America, Asia and Australasia.
Yahsat’s fleet of 5 satellites reaches more than 80% of the world’s population, enabling critical
communications including broadband, broadcasting, backhauling and mobility solutions. Based out of Abu
Dhabi in the UAE, Yahsat provides C, Ku, Ka and L-band satellite communications solutions for land,
maritime and aero platforms to consumers, governments and enterprises. Its businesses consist of Yahsat
Government Solutions, Thuraya, YahClick (powered by Hughes) and YahLink. Yahsat also participates in
Hughes do Brasil, an equity partnership with Hughes, and Yahlive, an equity partnership with SES. In 2020,
Yahsat commenced construction of Thuraya 4-NGS, the next generation telecommunications system for
Thuraya, which is due to be in service during 2024.
For more information, visit: www.yahsat.com; Follow us on Twitter: @YahsatOfficial
Contacts
Media: Investor Relations:
Ahmed Al Shamsi Yugesh Suneja
A/EVP of Communications – Yahsat AVP Investor Relations – Yahsat
Aomran@yahsat.ae M: +971 55 8897521
M: +971 55 9001954
Adham Kamel
Analyst Investor Relations – Yahsat
M: +971 50 9400519
InvestorRelations@yahsat.ae
Teneo
Yahsat@teneo.com
M: +971 58 581 4954
Page 7 of 8Legal Notice and Cautionary statement regarding forward-looking information
This announcement includes forward-looking statements, which are based on current expectations and
projections about future events. These statements may include, without limitation, words such as "expect",
"will", "looking ahead" and any other words and terms of similar meaning. These forward-looking statements
are subject to risks, uncertainties and assumptions about the Company and its subsidiaries and its
investments, and speak only as at the date of this announcement. Forward-looking statements are based
on assumptions of future events and information currently available to the Company which may not prove
to be accurate and the Company does not accept any responsibility for the accuracy or fairness thereof and
expressly disclaims any obligation to update any such forward looking statement. No representation or
warranty is made that any forward-looking statement will come to pass. You are therefore cautioned not to
place any undue reliance on forward-looking statements. For further information regarding forward-looking
statements, and the factors that may cause actual results and developments to differ materially from those
expressed or implied by these forward-looking statements please refer to our Annual Report for 2021, which
is available on our website at https://www.yahsat.com/Reports/2021/index.html
The amount and payment of dividends by the Group is subject to consideration by the Board of Directors
of the cash management requirements of the Group for operating expenses, interest expense, and
anticipated capital expenditures, and market conditions, the then current operating environment in its
markets, and the Board of Directors’ outlook for the business of the Company. In addition, any level or
payment of dividends will depend on, among other things, future profits and the business plan of the
Company, as determined at the discretion of the Board of Directors.
Neither this announcement nor anything contained herein constitutes a financial promotion, or an invitation
or inducement to acquire or sell securities in any jurisdiction.
Page 8 of 8 | neutral |
M anagement Discussion & Analysis – H1 2023 Financial Results
MANAGEMENT
DISCUSSION &
ANALYSIS
H1 2023 Financial Results
Abu Dhabi, UAE – 27 July 2023
1M anagement Discussion & Analysis – H1 2023 Financial Results
ADIB delivers a strong set of results for H1 2023 with
y -o-y net profit growth of 61% to AED 2.326 billion
Q 2 2023 net profit at AED 1.224 billion, up 68%
Strong performance in H1 2023 driven by solid revenue growth
+50% -7.0 ppts +61% +57%
AED 4.3bn 33.9% AED 2.3bn AED 0.57
Revenues Cost to income ratio Net Profit Earnings Per Share
+28% +18% +31% +7.6 ppts
AED 182bn AED 115bn AED 150bn 25%
Total Assets Gross Customer Financing Deposits ROE
128 bps 96,000
4.41% Net profit margin New customers joined ADIB
7.5%
+15%
NPA ratio Fees & commission growth
2M anagement Discussion & Analysis – H1 2023 Financial Results
Abu Dhabi Islamic Bank reported a growth in Net Profit Impairments grew 62% to AED 369 million for the
of 61% for the first half of 2023 to AED 2.3 billion from first half of 2023. The provision coverage of non-
AED 1.4 billion in H1 2022, reflecting a consistent trend performing financing (including collaterals) improved
of strong growth. Net profit for Q2 2023 reached AED by 4.7 percentage points to 128.4%.
1.2 billion with 68% growth versus Q2 2022.
Total assets increased 28% to reach AED 182 billion,
Revenue for H1 2023 improved by 50% to AED 4.3 driven by 18% growth in gross financing and 22%
billion compared to AED 2.8 billion last year due to growth in investments.
excellent income diversification mix and strong growth
across all business segments and products. Funded
income grew by 75% to AED 2.9 billion vs AED 1.7 billion Customer deposits rose 31% to reach AED 150 billion
in the corresponding period of last year, driven by versus AED 115 billion in H1 2022 driven mainly by
higher volumes and better margins. Non-funded 14% growth in Current and Savings Accounts (CASA)
income grew by 14% to reach AED 1.3 billion in H1 2023 despite the high-rate environment with CASA now
versus AED 1.2 billion in the corresponding period of last comprising 66% of total deposits.
year driven by 15% growth in fees and commissions.
ADIB maintained a robust capital position with a
Cost to income ratio was managed down with an Common Equity Tier 1 ratio of 12.82% and a
improvement of 7.0 percentage points to 33.9% versus total Capital Adequacy Ratio of 17.65%. The bank’s
40.9% in the corresponding period. This was liquidity position was healthy and comfortably within
predominantly driven by growth in Income and regulatory requirements, with the advances to stable
enhanced productivity. funding ratio at 78.0% and the eligible liquid asset ratio
at 21.8%.
3M anagement Discussion & Analysis – H1 2023 Financial Results
“We have benefited from strong deposit
inflows and grew our market share by
attracting approximately 96,000 new
customers to ADIB in the first half of 2023
emphasising the strength of our brand!”
H.E Jawaan Awaidah Al Khaili
Chairman
96,000
New customers joined ADIB
“ADIB reported a record performance in the first half of We have benefited from strong deposit inflows and grew
2023, delivering net profit of AED 2.3 billion, record our market share by attracting approximately 96,000 new
revenue of AED 4.3 billion, which equates to an average customers to ADIB in the first half of 2023 emphasising
return on equity of 25% reflecting the success of the the strength of our brand.
Group’s diversified business model and a healthy regional
economy. Our ability to deliver strong business As we look ahead, we will continue to work towards
momentum is the result of our solid capital position, creating value for all our stakeholders as we aim to
prudent risk management, diversified business lines and become the world’s most innovative Islamic bank. We are
nimble execution of our strategy underpinned by an confident in the economic outlook for the UAE and the
on-going digital and innovation strategy. region and strive to accelerate progress for both
customers and shareholders alike.”
Our efforts have led us to be recognised as the sole
winner of the Diamond category of Sheikh Khalifa
Excellence award, a testament to our robust financial
performance and pioneering approach to innovation in
digital banking.
4M anagement Discussion & Analysis – H1 2023 Financial Results
“Our business pipelines are healthy and asset
quality is resilient. The record return on
equity of 25% demonstrates the significant
improvements we have made in our
operations and business including investing in
our digital transformation.”
Nasser Abdulla Al Awadhi
Group Chief Executive Officer (GCEO)
25%
ROE
(Return on Equity)
“ADIB has delivered another strong set of results in the We were also pleased to see the strong appetite of
first half of 2023 with net profit up 61% year-on-year international investors in our latest Tier 1 Perpetual Sukuk
driven by 50% growth in revenues on the back of issuance that was oversubscribed by 9 times, particularly
increased transaction volumes and improved margins led in the current global capital market conditions which was
by an efficient funding base and higher yields. Both our a testament to ADIB’s prudent financial management,
Retail and Corporate Businesses have performed well and the bank’s prospects for further growth and
with high quality income growth and double-digit returns. development.
The momentum across the Group allows us to maintain a Going forward, we will continue to identify new growth
robust capital position and deliver attractive high returns areas and invest our resources for renewed customer
to shareholders. In Retail Banking, consumer spending excellence. We see significant growth opportunities as
remained healthy with combined Debit, Covered Card, the UAE economy continues to be strong and resilient.
and Customer Financing. In the Wholesale Bank, revenues However, we cannot ignore that global economic
were up versus last year. I am particularly pleased with uncertainties remain, and that there are concerns about
our ability to generate robust fee income, which grew the pressures of a rising rate environment on major
15% year-on-year. segments of the UAE economy. We will therefore
maintain our conservative approach to balancing the risk
Our business pipelines are healthy and asset quality is and reward of new credit extension while simultaneously
resilient. The record return on equity of 25% building our capital.”
demonstrates the significant improvements we have
made in our operations and business including investing
in digital transformation initiatives.
5M anagement Discussion & Analysis – H1 2023 Financial Results
“In the first half of the year, we continued to
strengthen our balance sheet and capital to
support future growth. We have seen a 31%
growth in customer deposits and 18% growth
in gross customer financing year-on-year.”
Mohamed Abdelbary
Group Chief Financial Officer (GCFO)
2.3bn
a
net profit
61%
“In the first half of 2023, ADIB was able to sustain the Our cost to income ratio improved to 33.9% reflecting
strong business and financial momentum. Our net profit stronger income and enabling continued acceleration of
increased 61% to AED 2.3 billion compared to the first half investment for growth. I am particularly pleased with our
of 2022 which reflects the successful implementation of capital strength as we ended the quarter with a CET 1
our five-year strategy as the bank continues to invest in ratio of 12.82%. Our latest Tier 1 perpetual sukuk issuance
s trategic initiatives to support the next phase of growth. was met with exceptional demand from over 240 global
and regional investors with the final order exceeding USD
In the first half of the year, we continued to strengthen 7 billion, more than 9 times over-subscribed.”
our balance sheet and capital to support future growth.
We have seen a 31% growth in customer deposits and
18% growth in gross customer financing year-on-year.
Funded income is up 75% year-on-year on an improved
financing and deposit mix with higher rates feeding
th rough to margins. Non-funded income is up 14% year-
o n-year from increased card transactions, coupled with
g rowth in foreign exchange and investment income
u nderlining our strategic focus on income diversification.
6M anagement Discussion & Analysis – H1 2023 Financial Results
GROUP FINANCIAL REVIE W
> Income statement
AED (Mn) Q2 2023 Q2 2022 % H1 2023 H1 2022 %
Gross revenue from funds 2,224 964 +131% 4,238 1,841 +130%
Δ Δ
Distribution to depositors (720) (84) +754% (1,308) (171) +664%
Net revenue from funds 1,504 880 +71% 2,930 1,669 +75%
Investment income 241 166 +45% 454 421 +8%
Fees, commissions income, net 369 291 +27% 668 579 +15%
Foreign exchange income, net 111 89 +24% 199 165 +21%
Other income 3 2 +60% 13 4 +262%
Non-funded income 724 549 +32% 1,335 1,169 +14%
Total operating income 2,228 1,429 +56% 4,264 2,838 +50%
Total operating expenses before impairment charge (719) (583) +23% (1,446) (1,160) +25%
Provision for impairment (223) (114) +95% (369) (227) +62%
Profit before zakat and tax 1,286 732 +76% 2,450 1,451 +69%
Zakat and tax (62) (5) +1041% (124) (9) +1255%
Profit after zakat and tax 1,224 726 +68% 2,326 1,442 +61%
Non-controllable interest (56) (0.5) +11473% (99) (0.9) +11454%
Profit attributable to equity holders of the bank 1,168 726 +61% 2,227 1,441 +55%
EPS (AED) – YTD 0.57 0.36 +57%
Net profit margin – YTD 4.41% 3.13% +1.3ppts
Cost to income ratio - YTD 33.9% 40.9% -7.0ppts
Cost of risk – YTD 0.48% 0.42% +6bps
ROAE – YTD 24.9% 17.3% +7.6ppts
ROAA – YTD 2.87% 2.12% +75bps
Group net profit grew 61% in H1 2023 to AED 2.3 billion compared to AED 1.4 billion in H1 2022. This was driven
mainly by solid growth in revenues compared to the corresponding period of the previous year.
Revenues increased by 50% in H1 2023 to AED 4.3 billion versus AED 2.8 billion in H1 2022, primarily driven by
growth in funded income mainly due to the impact of higher rates and strong finance growth.
Funded income rose 75% to reach AED 2.9 billion supported by higher volumes and rising rates with 25% growth
in average earning assets thereby increasing the net profit margin to 4.41% as compared to 3.13% in H1 2022,
despite an increase in the cost of funding. ADIB preserves one of the highest margins in the market, supported by
one of the lowest cost of funds in the market.
Non-funded income increased by 14% to AED 1.3 billion for H1 2023 driven by a 15% increase in fees and
commissions income. Non-funded income represents 31% of total income.
Fees and commissions income was up 15% year-on-year driven by card related fees and income from trade finance.
Overall revenues were supported by growth in new customers of approximately 96,000 during the first half of
2023, evidencing ADIB’s long-term commitment to its customers and continuous efforts to deliver superior
customer service.
7M anagement Discussion & Analysis – H1 2023 Financial Results
Strategic and transformation investments and volume-related expenses resulted in the increase of 25% in
operating expenses to AED 1.4 billion versus H1 2022 that was partially offset by the benefit of productivity savings.
Despite this, there was an overall improvement in the cost-to-income ratio of 7.0 percentage points to 33.9%.
The net impairment charge for the first half of the year increased by 62% to AED 369 million. The cost of risk saw
a slight increase of 6 basis points to 0.48%. The provision coverage of non-performing financing (including
collaterals) improved by 4.7 percentage points to 128.4%.
> Balance Sheet
AED (Mn) H1 2023 H1 2022 %
Cash and balances with central banks 31,240 19,578 +60%
Δ
Due from financial institutions 8,682 2,564 +239%
Customer financing, net 109,329 92,190 +19%
Investments 22,590 18,572 +22%
Investment in associates 799 1,677 -52%
Investment and development properties 1,984 1,996 -1%
Other assets 7,544 5,366 +41%
Total assets 182,167 141,944 +28%
Due to financial institutions 3,459 2,391 +45%
Depositors’ accounts 150,401 115,188 +31%
Other liabilities 4,859 3,961 +23%
Total liabilities 158,718 121,541 +31%
Share capital 3,632 3,632 -
Retained earnings 8,990 6,765 +33%
Other reserves 5,124 5,241 -2%
Equity attributable to shareholders of the bank 17,745 15,638 +13%
Tier 1 sukuk 4,754 4,754 -
Non - controlling interest 949 11 +8470%
Equity attributable to equity holders of the bank 23,449 20,404 +15%
Customer financing, gross 115,091 97,237 +18%
Non-performing financing 8,619 8,175 +5%
NPA ratio 7.5% 8.4% -92bps
NPA coverage ratio 72.5% 71.4% +1.2ppts
NPA coverage ratio with collaterals 128.4% 123.7% +4.7ppts
Risk weighted assets 128,331 114,228 +12%
Common Equity Tier 1 Ratio 12.82% 12.77% +5bps
Tier 1 Ratio 16.53% 16.94% -41bps
Capital Adequacy Ratio 17.65% 18.04% -39bps
Financing to deposit ratio 72.7% 80.0% -7.3ppts
Advances to stable fund ratio (ASFR) 78.0% 85.1% -7.2ppts
Eligible Liquid Asset Ratio (ELAR) 21.8% 17.4% +4.4ppts
8M anagement Discussion & Analysis – H1 2023 Financial Results
Total assets reached AED 182.2 billion as of 30 June 2023, an increase of 28% from 30 June 2022, driven mainly by
a growth in net financing, growth in cash and balances with central bank, and growth of the investment’s portfolio.
Gross customer financing increased 18% to AED 115.1 billion from 14% growth in wholesale financing across
government and public sector enterprises, corporates, and financial institutions while retail financing portfolios
grew by 10%.
The bank’s investment portfolio increased 22% on 30 June 2023 to AED 22.6 billion.
Customer deposits amounted to AED 150 billion as of 30 June 2023, up 31% from 30 June 2022 as CASA deposits
increased by 14% to AED 99 billion comprising 66% of total customer deposits.
Non-performing financing totaled AED 8.6 billion as of 30 June 2023 compared to AED 8.2 billion as of
30 June 2022.
Non-performing financing ratio improved to 7.5% versus 8.4% as of 30 June 2022.
ADIB continued to maintain a healthy liquidity position with an advance to stable funding ratio at 78.0% compared
with 85.1% on 30 June 2022, while the eligible liquid asset ratio was 21.8% as of 30 June 2023 versus 17.4% at 30
June 2022.
The bank further maintained a robust capital position with the Common Equity Tier 1 ratio at 12.82%, a tier 1 ratio
of 16.53% and capital adequacy ratio of 17.65% as of 30 June 2023, exceeding regulatory requirements prescribed
by the UAE Central Bank.
9M anagement Discussion & Analysis – H1 2023 Financial Results
SEGMENTAL PERFORMANCE REVIEW
Retail Banking Group
> Income Statement
AED (Mn) H1 2023 H1 2022 %
Funded income 2,043 1,334 +53%
Δ
Non-funded income 337 295 +14%
Total operating income 2,379 1,629 +46%
Operating expenses excluding impairments (990) (904) +9%
Impairment charge (96) (63) +53%
Profit before zakat and tax 1,293 661 +95%
Tax and Zakat - - -
Profit after zakat and tax 1,293 661 +95%
Cost to income ratio 41.6% 55.5% -13.9ppts
Cost of risk 0.34% 0.24% +10bps
> Balance Sheet
AED (Mn) H1 2023 H1 2022 %
Financing, gross 56,508 51,406 +10%
Δ
Depositors’ accounts 88,496 79,247 +12%
ADIB’s Retail Banking Group (‘Retail Banking’), is the leading bank for UAE nationals and a critical growth engine for
ADIB. Retail Banking delivered a strong performance, generating AED 1.3 billion of net profit in H1 2023, an 95%
increase over the corresponding period last year.
In addition, Retail Banking continued strengthening their customer propositions and improving channel
productivity, resulting in improved sales momentum for cards and 10% growth in gross financing to AED 56.5
billion as of 30 June 2023.
Based on encouraging financing growth, revenue for Retail Banking increased 46% to AED 2.4 billion, on the back
of growth in funded income.
Operating expenses in H1 2023 grew slightly, reflecting the inflationary trend, while the Bank undertook cost
optimisation initiatives, and continued focus on process simplification and automation to improve efficiency and
deliver better customer experiences.
The strategic focus on delivering excellent customer experience enabled Retail Banking to expand its customer base
by approximately 96,000 customers in the first half of 2023.
Deposits also grew by 12%. This is a testament to the Bank’s strong UAE national and Emirati-focused strategy, which
is at the core of the Retail Banking business. This was driven by CASA growth of 14%.
On digital, the Bank continued to introduce industry-leading digital capabilities, redesign the client experience, and
enabled customers to bank anytime, anywhere, on their preferred channels. The provision of the new digital remote
sales platform allowed customers to interact remotely, driving significant sales across consumer finance products.
10M anagement Discussion & Analysis – H1 2023 Financial Results
Wholesale Banking Group
> Income Statement
AED (Mn) H1 2023 H1 2022 %
Funded income 463 320 +45%
Δ
Non-funded income 148 160 -7%
Total operating income 612 480 +27%
Operating expenses excluding impairments (138) (136) +1%
Impairment charge (137) (79) +73%
Profit before zakat and tax 337 265 +27%
Tax and Zakat (6) (6) +8%
Profit after zakat and tax 331 259 +28%
Cost to income ratio 22.5% 28.4% -5.8ppts
Cost of risk 0.62% 0.41% +21bps
> Balance Sheet
AED (Mn) H1 2023 H1 2022 %
Financing, gross 44,123 38,825 +14%
Δ
Depositors’ accounts 31,998 23,389 +37%
The Wholesale Banking Group (‘WBG’) saw an increase in net profit of 28% driven by higher volume and the benefit
of rising rates.
Total operating income grew 27% reflecting an economic rebound and improvements in funded income.
Gross customer financing grew by 14% to AED 44.1 billion, as a result of a rebound in economic activity and market
sentiment, as well as strong momentum in deal execution. This was driven by demand from existing large
corporates as well as new to bank clients.
The Global Transaction Banking (GTB) team continued to make progress on its transformation journey, offering
digitally enabled and innovative solutions to clients.
WBG’s impairment charge for the first half of the year amounted to AED 137 million, a 73% increase relative to
the first half of 2022.
11M anagement Discussion & Analysis – H1 2023 Financial Results
Treasury
> Income Statement
AED (Mn) H1 2023 H1 2022 %
Funded income (420) (111) -278%
Δ
Non-funded income 601 415 +45%
Total operating income 181 304 -41%
Operating expenses excluding impairments (22) (20) +8%
Impairment charge (56) (5) +1018%
Profit before zakat and tax 102 279 -63%
Tax and Zakat - - -
Profit after zakat and tax 102 279 -63%
Cost to income ratio 12.2% 6.7% +5.5ppts
Investment Yield 3.5% 2.7% +84bps
> Balance Sheet
AED (Mn) H1 2023 H1 2022 %
Investments 22,590 18,572 +22%
Δ
Depositors’ accounts 1,535 3,663 -58%
ADIB’s Treasury department saw a decline of 63% in net profit to AED 102 million during the first half of 2023 due
to a reduction in the revenue for the period by 41% to AED 181 million. This was primarily due to adverse market
conditions, partially offset by fee income generation from customers’ activities.
12M anagement Discussion & Analysis – H1 2023 Financial Results
Strategy and
Outlook
Strategy
ADIB Strategy defined the bank’s renewed purpose of becoming a lifelong partner for our clients, community, and
colleagues. Furthermore, ADIB’s vision was revamped to be the world’s most innovative Islamic bank.
The bank has delivered the below strategic initiatives under the 4 strategic pillars:
Continuous Innovation
ADIB launched various products that enabled a growth in market share:
Istiqrar: ADIB launched UAE’s first long-term, fixed-rate home finance. This unique product offers customers
a consistent, fixed monthly instalment throughout the chosen tenor rate, eliminating any variations or
fluctuations.
Cashback Card: ADIB launched its new Cashback Visa Covered Card signifying an expanded role for cards in the
bank’s retail strategy. The new card is considered one of the industry’s best cashback cards and offers
customers the opportunity to earn 4% cash rewards when they use the card across a wide range of daily
spending categories.
Yusr Salary Advance: Allows customers to avail their pay cheque in advance instantly with a Murabaha
structure-based fee. The new feature can be accessed through the mobile banking app and branches across
the UAE. ‘Yusr’ is designed to help existing ADIB salary transfer customers, both UAE Nationals and expatriates,
to manage their financials and fulfil their short-term funding needs. This product aims to provide convenience
and assist customers to access up to 50% of their salaries.
SME Instant Account Opening: ADIB became the first bank in the UAE to provide small and medium-sized
enterprises (SMEs) with convenient remote account opening services through a mobile app by deploying
Emirates Face Recognition (EFR) technology. This new feature allows businesses to apply for a business account
without the need to visit a branch or submit physical documents or signatures. Through this technology, ADIB
can perform highly secure identity verification before opening a new account for businesses in less than 24
business hours.
50% cashback: ADIB launched a unique campaign that rewards customers for consolidating their banking with
ADIB. The first-of-its-kind campaign rewards customers with a one-time bonus of 50% of their monthly salary
when they transfer their finance (personal or home finance) and salary to ADIB and obtain one of the ADIB
Covered Cards, such as Emirates Skywards, Etihad Guest, Etisalat Gold, Platinum & Signature, or Cashback
cards.
13M anagement Discussion & Analysis – H1 2023 Financial Results
Segment Focused
ADIB continued to build on its existing strength in the Emirati retail segment while attracting and developing new
business segments where the bank can grow profitably. In this respect, ADIB launched propositions that support
Emirati customers across all financial stages in their lives and welcomed 96,000 customers.
Digital Excellence
Digital remains at the heart of ADIB’s 2025 strategy, and the bank strives to become a digital-first financial institution.
The number of digitally active customers has increased steadily over the past year. Currently 76% customers are
digitally active.
Key highlights of ADIB’s progress on digitalization and innovation include the following:
ADIB’s mobile app is top ranked on the UAE App store.
54 % of Personal Finance customers are on-boarded digitally.
New features were added to the Mobile app to help increase customer usage and adoption – these include
IPO subscription, push notification, Consumer Protection Rights, and additional security features for transfers.
Sustainable Future
ADIB released its second ESG report emphasising the progress made on the bank’s Environmental, Social, and
Governance (ESG) goals and commitments for the year 2023. The report also highlights a new three-year ESG
strategy to integrate ESG risks considerations into the banking framework and support the UAE’s efforts to
achieve the transition towards a more sustainable economy.
ADIB is a regional sustainability leader (MSCI ESG rating of ‘A’), and a constituent of MSCI ESG Leaders index.
ADIB finalized its sustainability and ESG frameworks.
ADIB continued to play a crucial role in helping to deliver the region’s sustainable finance agenda facilitating
around USD1.7 billion worth of sustainable projects.
ADIB has achieved an upgrade to its environmental, social, and governance (ESG) risk score by Sustainalytics,
one of the world's leading ESG rating agencies. ADIB's overall Sustainalytics ESG risk score has improved from
34.25 in 2022 to 29.6 in 2023, reflecting a significant leap that transitioned ADIB from the 'high risk' category
to the 'medium risk' category. This achievement underscores the bank’s strong commitment to ESG principles
and its ongoing efforts to effectively manage risks. The ratings are measured on a scale from 0 to 100, with
lower scores indicating a reduction in risk.
ADIB leads the way in Emiratisation by significantly investing in upskilling, reskilling, and developing Emiratis
through international training and development programs.
Outlook
The outlook for the GCC remains positive despite ongoing concerns over a global economic slowdown. Higher oil prices
have pushed GCC budgets into surplus with expectation for the UAE GDP to grow by 3.5% in 2023. Liquidity in the UAE
remains strong, with higher oil prices expected in the rest of 2023 which will help in deposit inflows.
14M anagement Discussion & Analysis – H1 2023 Financial Results
2023 Awards List
Awards Categories
Sheikh Khalifa Excellence Awards Diamond Category
MEED MENA Banking Excellence MENA Islamic Finance
Awards 2023 Bank of the Year
Bonds & Sukuk Middle East Islamic Syndication
Awards 2023 of the Year
Bonds & Sukuk Middle East Global Sovereign Sukuk
Awards 2023 Deal of the Year
Bonds & Sukuk Middle East Real Estate Finance
Awards 2023 Deal of the Year
15M anagement Discussion & Analysis – H1 2023 Financial Results
AED 182bn
In assets
About ADIB
ADIB is a leading bank in the UAE with more than AED 182 billion in assets. The bank also offers world-class online,
mobile and phone banking services, providing clients with seamless digital access to their accounts 24 hours a day.
ADIB provides Retail, Corporate, Business, Private Banking and Wealth Management Solutions. The bank was
established in 1997 and its shares are traded on the Abu Dhabi Securities Exchange (ADX).
ADIB has a strong presence in six strategic markets: Egypt, where it has 70 branches, the Kingdom of Saudi Arabia, the
United Kingdom, Sudan, Qatar and Iraq.
Named World’s Best Islamic Bank by The Financial Times - The Banker publication, ADIB has a rich track record of
innovation, including introducing the award-winning Ghina savings account, award-winning co-branded cards with
Emirates airlines, Etihad and Etisalat and a wide range of financing products.
ADIB Investor relations Mobile application
Please download the ADIB Investor relations dedicated mobile app
available on both Apple and Google play stores. The application
will keep you up to date with the latest developments - from latest
share prices and press releases to investor days, financial results
and our document library. You can view stock exchange
announcements, presentations, annual and quarterly reports, and
interact with key data onscreen.
16M anagement Discussion & Analysis – H1 2023 Financial Results
For media information, please visit www.adib.ae or contact:
Lamia Hariz
Head of Corporate Communications, Marketing & Investor Relations
Email: lamia.hariz@adib.com
Abu Dhabi Islamic Bank Public Joint Stock Company is licensed by the Central Bank of UAE.
17 | positive |
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II | neutral |
Dubai
Investments
Dubai Investments Q1 2023 profit
surges 55% to AED 314.45 million
Dubai, 12 May 2023: Dubai Investments, the leading, diversified investment
company listed on the Dubai Financial Market (DFM), has announced a 55%
percent increase in Q1 2023 net profit to AED 314.45 million, compared to
AED 202.55 million during the corresponding period of 2022.
The total income for the Group increased to AED 1.02 billion compared to
AED 761.04 million during the first quarter of 2022, an increase of 34 percent.
Total shareholder equity also increased to AED 13.16 billion, compared to
AED 12.28 billion during the same period in 2022. Total Assets for the Group
remained stable at AED 20.96 billion.
Khalid Bin Kalban, Vice Chairman and Chief Executive Officer of Dubai
Investments, said, “Dubai Investments continues to deliver strong and
sustainable results fueled by the Group’s strategic initiatives and ability to
capitalize on key opportunities. The response to Danah Bay, our premium
beachfront development in the emirate of Ras Al Khaimah, has exceeded all
expectations and we are looking forward to launching the next phase. We
are also progressing well with our expansion into other geographies and
enhancing internal capabilities while building on existing businesses. With
the economy experiencing robust growth and strong upward trajectory in the
real estate sector, Dubai Investments is strategically positioned to capitalize
on these favorable conditions.”
-Ends- | positive |
Q3 2023 Results Press Release
Fertiglobe Reports Q3 2023 Revenues of $525 Million; Announces
Dividends of $275 Million for H1 2023
• Q3 2023 revenues and adjusted EBITDA at $525 million and $199 million, respectively. Adjusted net profit and
free cash flows during the quarter were $41 million and $126 million, respectively
• Third quarter own-produced sales volume up 8% Y-o-Y driven by 10% higher own-produced urea sales volumes
• 9M 2023 revenues and adjusted EBITDA at $1.8 billion and $715 million, respectively. Adjusted net profit and
free cash flows during the quarter were $261 million and $458 million, respectively
• Announces dividends of $275 million for H1 2023, demonstrating sustained commitment to generating attractive
shareholder returns
• Cost optimization program is on track and expected to realize its targeted $50 million run rate savings by the
end of 2024
• Sustainability-focused projects are advancing, with Fertiglobe, alongside ADNOC, piloting the deployment of
the world’s first modular CycloneCC carbon capture unit at our UAE facilities, with potential for broader future
deployment
• Market outlook remains positive with nitrogen prices bottoming in late Q2 2023/early Q3 2023; ammonia and
urea prices are now up ~150% and ~35%, respectively, from their trough levels, supported by demand recovery
and tightening supply. Fertiglobe's short-term outlook is further underpinned by a strong order book for ammonia
and urea sales at higher prices for the remainder of the year
Abu Dhabi, UAE – November 07, 2023: Fertiglobe (ADX: FERTIGLB), the strategic partnership between
ADNOC and OCI Global, the world’s largest seaborne exporter of urea and ammonia combined, the largest
nitrogen fertilizer producer in the Middle East and North Africa (“MENA”) region, and an early mover in
sustainable ammonia, today reported Q3 2023 revenues of $525 million, adjusted EBITDA of $199 million,
adjusted net profit of $41 million, and free cash flows of $126 million. Own-produced sales volumes rose by 8%
for the third quarter relative to the same period last year, driven by 10% higher own-produced urea sales
volumes. For the nine-month period ended 30 September 2023, the Company reported revenues of $1.8 billion,
adjusted EBITDA of $715 million, adjusted net profit of $261 million, and free cash flows of $458 million.
Fertiglobe’s board of directors approved dividends of $275 million for H1 2023, equivalent to 12 fils/share. The
Company’s healthy free cash flow conversion and strong balance sheet (net cash position of $28 million or 0.0x
net leverage / LTM adjusted EBITDA as of 30 September 2023) enable it to maintain dividend payments while
investing in value accretive growth projects.
Ahmed El-Hoshy, CEO of Fertiglobe, commented:
“Despite the traditional summer lull for fertilizer sales, we saw nitrogen prices maintain their positive momentum
in Q3, driven by tightening markets on planned and unplanned supply disruptions, restocking demand, as well
as expectations of reduced exports from China. Nitrogen prices have increased significantly from their troughs
in the second and third quarters, and we expect the benefits from these increases to materialize in the fourth
quarter. The short-term outlook is further underpinned by a strong order book for ammonia and urea sales in Q4
2023. In the medium to longer term, the nitrogen outlook remains favourable, with limited incremental supply
additions over the next several years, healthy farm economics, and elevated energy prices raising marginal cost
floors, particularly going into the winter season.Q3 2023 Results Press Release
We are pleased to note that our own-produced Q3 2023 sales volumes were up 8% year-on-year, primarily due
to 10% higher own-produced urea sales volumes. The expected recovery in demand ahead of the spring
application season in the Northern Hemisphere should continue to support prices going in Q4 2023, and
Fertiglobe remains ideally positioned to serve key import markets from our strategically located facilities.
In the third quarter, nitrogen prices reflected tighter market balances due to record low inventory levels, healthy
demand from key importing regions, restrictions on Chinese urea exports, and supply disruptions.
Alongside ADNOC, we recently announced the pilot deployment of the world’s first modular CycloneCC carbon
capture unit at our Fertil plant in the UAE, with the potential for broader deployment across our operations, if
successful. Looking ahead, we are committed to leveraging our state-of-the-art ammonia facilities and global
distribution infrastructure to expand our low-carbon ammonia capacity as part of our commitment to reducing
the carbon footprint of our operations and meeting increasing demand for low-carbon hydrogen and ammonia.”
Cost savings
Fertiglobe has recently launched initiatives to further optimize its cost structure and reinforce its top quartile cash
cost positioning, targeting $50 million in recurring annualized savings by the end of 2024. Key focus areas include
enhancements to the operating model, improvements in logistical capabilities, and increased capex and opex
efficiencies. Meanwhile, Fertiglobe's manufacturing improvement plan remains on track to deliver further
operational and cost efficiencies between 2023 and 2025.
Dividends and capital structure
Following quarter-end, Fertiglobe has reached commercial agreement with a group of its core relationship banks
on the terms of a new $500 million term facility, which is expected to be executed shortly. Once the facility is
executed, the proceeds will be used to refinance shorter term borrowings, further improving Fertiglobe’s maturity
profile and liquidity, in line with the company’s commitment to an investment grade capital structure.
As of 30 September 2023, Fertiglobe reported a net cash position of $28 million, compared to a net cash position
of $287 million as of 31 December 2022, allowing it to continue balancing the pursuit of future growth
opportunities with an attractive dividend pay-out. Fertiglobe announced the board of director’s approval of H1
2023 dividends at $275 million, equivalent to 12 fils per share, payable in the next few weeks.
-Ends-Q3 2023 Results Press Release
About Fertiglobe:
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, and an early mover in
sustainable ammonia. Fertiglobe’s production capacity comprises of 6.6 million tons of urea and merchant
ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria, making it the largest producer of nitrogen
fertilizers in the Middle East and North Africa (MENA), and benefits from direct access to six key ports and
distribution hubs on the Mediterranean Sea, Red Sea, and the Arab Gulf. Headquartered in Abu Dhabi and
incorporated in Abu Dhabi Global Market (ADGM), Fertiglobe employs more than 2,700 employees and was
formed as a strategic partnership between OCI Global (“OCI”) and the Abu Dhabi National Oil Company
(“ADNOC”). Fertiglobe is listed on the Abu Dhabi Securities Exchange (“ADX”) under the symbol “FERTIGLB”
and ISIN “AEF000901015. To find out more, visit: www.fertiglobe.com.
For additional information, contact:
Fertiglobe Investor Relations: For additional information on Fertiglobe:
Rita Guindy www.fertiglobe.com
Director
Email: rita.guindy@fertiglobe.com
investor.relations@fertiglobe.comQ3 2023 Results MD&A Report
Fertiglobe Reports Q3 2023 Results
Highlights:
•
Fertiglobe reported Q3 2023 revenues and adjusted EBITDA at $525 million and $199 million, respectively.
Adjusted net profit and free cash flows during the quarter were $41 million and $126 million, respectively.
•
Q3 2023 own-produced sales volume up 8% Y-o-Y driven by 10% higher own-produced urea sales volumes.
•
Fertiglobe's 9M 2023 revenues and adjusted EBITDA were $1,770 million and $715 million, respectively.
Adjusted net profit was $261 million in 9M 2023, while free cash flows were $458 million.
•
Fertiglobe announced dividends of $275 million for H1 2023, equivalent to 12 fils/share, and expects to
maintain healthy dividend distributions supported by its robust free cash flow generation and supportive
market fundamentals.
•
Fertiglobe has reached commercial agreement with a group of its core relationship banks on the terms of a
new $500 million term facility, which was 1.9x oversubscribed and is expected to be executed shortly. Once
the facility is executed, the proceeds will be used to refinance shorter term borrowings, further improving
Fertiglobe’s maturity profile and liquidity.
•
Fertiglobe is on track to realize its targeted $50 million run rate savings by the end of 2024.
•
Sustainability-focused projects are advancing, with Fertiglobe, alongside ADNOC, piloting deployment of the
world’s first modular CycloneCC carbon capture unit at our UAE facilities
•
Market Outlook:
◦
Nitrogen prices bottomed in late Q2 2023/early Q3 2023; ammonia and urea prices are now up ~150%
and ~35%, respectively, from their trough levels, supported by demand recovery and tightening supply.
Fertiglobe's short term outlook is further underpinned by a strong order book for ammonia and urea sales
at higher prices for the remainder of the year.
◦
Limited incremental capacity additions in the next several years, and elevated marginal production costs
provide a long term support for the market.
Abu Dhabi, UAE – November 07, 2023: Fertiglobe (ADX: FERTIGLB), the strategic partnership between
ADNOC and OCI Global, the world’s largest seaborne exporter of urea and ammonia combined, the largest
nitrogen fertilizer producer in the Middle East and North Africa (“MENA”) region, and an early mover in
sustainable ammonia, today reported Q3 2023 revenue of $525 million, adjusted Earnings Before Interest, Taxes,
Depreciation, and Amortization (EBITDA) of $199 million, adjusted net profit of $41 million, and free cash flow
of $126 million. In Q3 2023, nitrogen prices reflected tighter market balances due to record low inventory levels,
healthy demand from key importing regions, restrictions on Chinese urea exports, and supply disruptions.
Ahmed El-Hoshy, CEO of Fertiglobe, commented:
“Nitrogen prices maintained their positive momentum in Q3 2023, despite the traditional summer lull for fertilizers,
driven by tightening markets on a combination of planned and unplanned supply disruptions, restocking demand,
as well expectations of reduced exports from China. Nitrogen prices have increased significantly from their troughs
1Q3 2023 Results MD&A Report
in the second and third quarters, and we expect the benefits from these increases to materialize in the fourth
quarter. The nitrogen outlook in the medium to longer term remains favorable, with limited incremental supply
additions over the next several years, healthy farm economics, and elevated energy prices raising marginal cost
floors, particularly going into the winter season.
Our own-produced sales volumes were up 8% in Q3 2023 compared to Q3 2022, primarily due to 10% higher
own-produced urea sales volumes. A strong order book at the beginning of Q3 2023 resulted in a lag effect on
our realized prices vis-a-vis the moves in benchmark indices. The expected recovery in demand ahead of the
spring application season in the Northern Hemisphere should however continue to support prices in Q4 2023, and
Fertiglobe remains ideally positioned to service key import markets through its strategically located facilities.
In addition, Fertiglobe and ADNOC recently announced the pilot deployment of the world’s first modular
CycloneCC carbon capture unit at our Fertil plant in the UAE, with the potential for broader deployment across our
operations, if successful. Looking ahead, we are committed to leveraging our state-of-the-art ammonia facilities
and global distribution infrastructure to expand our low-carbon ammonia capacity as part of our commitment to
reducing the carbon footprint of our operations and meeting the increasing demand for low-carbon hydrogen
and ammonia.
Our healthy free cash flow conversion and balance sheet (0.0x net leverage / LTM EBITDA) allow us to continue
to balance dividend payments and selective growth spending on value accretive projects, and we are pleased
to announce the Board of Directors' approval of H1 2023 dividends of $275 million, equivalent to 12 fils/share,
payable in the next few weeks.
Further, I am pleased to note that the proactive management initiatives recently rolled out to bolster our free
cash generation across cycles, namely the Manufacturing Improvement Plan (MIP) and the cost optimization
program, are bearing fruit. Progress has been made on key focus areas of the cost optimization program, including
operating model transformation through launching the set-up of a shared service center in Egypt, advancing our
logistical capabilities and strategy, as well as capex and opex optimization.
Finally, I would like to extend my sincere appreciation to the Fertiglobe team for their steadfast commitment to
upholding top-tier safety, performance, and excellence benchmarks, which continues to be a pivotal driving force
behind our achievements, and for our future journey.”
Market Outlook
Fertiglobe believes the outlook for nitrogen markets remains positive, supported by crop fundamentals,
elevated European gas pricing and tightening supply dynamics in the medium term.
•
The nitrogen demand outlook for 2024 and beyond is underpinned by several factors:
◦
Despite the recent increase in nitrogen prices, farmer affordability levels remain robust (+26% since
Q3 2022), incentivizing nitrogen demand, and supporting the rebuilding of global grain stocks. Global
grain stock-to-use ratios remain below the 10 year average, and it will likely take at least until 2025 to
replenish stocks.
◦
Forward grain prices (US corn futures >$5.0/bushel to the end of 2025 compared to $3.7/bushel
during 2015 - 2019, and US wheat futures >$6.0-7.0/bushel, compared to $4.8/bushel during 2015
- 2019) are supporting farm incomes and incentivizing nitrogen demand to be above historical
trend levels.
2Q3 2023 Results MD&A Report
◦
Industry consultants expect a recovery in global ammonia trade from trough levels of ~17 million
tons in 2022 / 2023 towards historical levels of 19+ million tons per year, as demand for downstream
fertilizers, driven by improved affordability, recovers and industrial demand picks up.
◦
There is also significant potential incremental demand in the medium term from new applications for
ammonia such as its use as a fuel for power generation, especially in Japan and Korea. These two
markets alone could generate incremental demand for ammonia of 6 to 9 million tons by 2030.
•
Nitrogen supply is expected to be tighter over 2023 – 2027:
◦
No major large-scale greenfield urea supply additions are expected in the remainder of 2023
and 2024, with limited additions from 2025 to 2027, generating a global supply/demand gap of
~4 million tons.
◦
Chinese urea exports are expected to remain in the range of 3 – 4 million tons per year over the
medium term, as China continues to curb exports to ensure sufficient availability of urea for the
domestic market.
•
Feedstock pricing is expected to remain well above historical averages:
◦
2023 - 2025 forward European gas prices are c.$17/mmBtu (or c.3x higher than 2015-2019), with
higher prices anticipated for next winter. This implies marginal cost support levels for ammonia of
c.$770/t (including full impact CO2) and ~$605/t (excluding CO2).
Dividends and capital structure
As of 30 September 2023, Fertiglobe reported a net cash position of $28 million, compared to a net cash balance
of $287 million as of 31 December 2022, allowing the company to balance future growth opportunities and
dividend pay-out. Fertiglobe announced H1 2023 dividends at $275 million, equivalent to 12 fils/share, payable in
the next few weeks.
Following quarter-end, Fertiglobe has reached commercial agreement with a group of its core relationship banks
on the terms of a new $500 million term facility, which is expected to be executed shortly. Once the facility is
executed, the proceeds will be used to refinance shorter term borrowings, further improving Fertiglobe’s maturity
profile and liquidity, in line with the company’s commitment to an investment grade capital structure.
Cost savings
Fertiglobe has recently launched an initiative to further optimize its cost structure and reinforce its top-quartile
cash cost positioning, targeting $50 million in recurring annualized savings by the end of 2024. Key focus areas
include enhancements to the operating model, improvements in logistical capabilities and increased operational
cost and spend efficiencies. In addition, Fertiglobe's manufacturing improvement plan remains on track to deliver
operational and cost efficiencies by 2025.
3Q3 2023 Results MD&A Report
Consolidated Financial Results at a Glance1
Financial Highlights ($ million, unless otherwise stated)
$ million unless otherwise stated Q3 2023 Q3 2022 % Δ 9M 2023 9M 2022 % Δ
Revenue 525.1 1,317.9 (60%) 1,770.3 3,974.0 (55%)
Gross profit 153.8 583.9 (74%) 597.3 1,919.5 (69%)
Gross profit margin 29.3% 44.3% 33.7% 48.3%
Adjusted EBITDA 199.0 606.3 (67%) 714.5 2,000.9 (64%)
Adjusted EBITDA margin 37.9% 46.0% 40.4% 50.3%
EBITDA 191.8 609.3 (69%) 704.3 1,998.9 (65%)
EBITDA margin 36.5% 46.2% 39.8% 50.3%
Adjusted net profit attributable to shareholders 41.2 291.5 (86%) 260.5 1,090.7 (76%)
Reported net profit attributable to shareholders 39.5 291.6 (86%) 254.4 1,077.6 (76%)
Earnings per share ($)
Basic earnings per share 0.005 0.035 (86%) 0.031 0.130 (76%)
Diluted earnings per share 0.005 0.035 (86%) 0.031 0.130 (76%)
Adjusted earnings per share 0.005 0.035 (86%) 0.031 0.131 (76%)
Earnings per share (AED)
Basic earnings per share 0.017 0.129 (86%) 0.113 0.477 (76%)
Diluted earnings per share 0.017 0.129 (86%) 0.113 0.477 (76%)
Adjusted earnings per share 0.017 0.129 (86%) 0.113 0.481 (77%)
Free cash flow 126.4 189.3 (33%) 457.7 1,498.8 (69%)
Capital expenditure 33.1 23.5 41% 80.3 47.5 69%
Of which: Maintenance Capital Expenditure 28.8 18.4 57% 70.5 38.2 85%
30 Sep 23 31 Dec 22 % Δ
Total Assets 5,434.2 5,530.6 (2%)
Gross Interest-Bearing Debt 1,571.3 1,155.2 36%
Net Cash (28.0) (286.8) (90%)
Q3 2023 Q3 2022 % Δ 9M 2023 9M 2022 % Δ
Sales volumes (‘000 metric tons)
Fertiglobe Product Sold 1,470 1,364 8% 4,247 4,158 2%
Third Party Traded 40 336 (88%) 353 848 (58%)
Total Product Volumes 1,510 1,700 (11%) 4,600 5,006 (8%)
1 Unaudited
4Q3 2023 Results MD&A Report
Operational Highlights
Operational Performance Highlights:
•
12-month rolling recordable incident rate to 30 September 2023 of 0.13 incidents per 200,000 manhours.
•
Fertiglobe’s total own-produced sales volumes were up 8% to 1,470kt in Q3 2023 vs Q3 2022, driven by:
◦
Relatively unchanged ammonia own-produced sales volumes of 323kt in Q3 2023, and
◦
A 10% YoY increase in urea own-produced sales volumes to 1,144kt in Q3 2023 compared to 1,042kt
in Q3 2022 driven by higher production and lower ending inventories.
•
Traded third party volumes decreased 88% YoY to 40kt in Q3 2023, compared to 336kt in Q3 2022.
•
Total own-produced and traded third party volumes of 1,510kt were down 11% in Q3 2023 compared to
Q3 2022.
•
In 9M 2023, Fertiglobe’s total own-produced sales volumes were up by 2% to 4,247kt compared to 9M 2022,
driven by:
◦
A 6% decrease in ammonia own-produced sales volumes to 849kt from 902kt in 9M 2022, and
◦
A 4% increase in urea own-produced sales volumes to 3,388kt compared to 3,256kt in Q3 2022.
•
Traded third party volumes were down 58% YoY to 353kt in 9M 2023.
•
Total own-produced and traded third party sales volumes of 4,600kt in 9M 2023 were down 8% compared to
5,006kt in 9M 2022.
Product sales volumes
Sales volumes ('000 metric tons) Q3 2023 Q3 2022 % Δ 9M 2023 9M 2022 % Δ
Own Product
Ammonia 323 322 0% 849 902 (6%)
Urea 1,144 1,042 10% 3,388 3,256 4%
DEF 3 - n/m 10 - n/m
Total Own Product Sold 1,470 1,364 8% 4,247 4,158 2%
Third-Party Traded
Ammonia 32 134 (76%) 141 213 (34%)
Urea 8 202 (96%) 212 635 (67%)
Total Traded Third-party Product 40 336 (88%) 353 848 (58%)
Total Own Product and Traded Third-party 1,510 1,700 (11%) 4,600 5,006 (8%)
5Q3 2023 Results MD&A Report
Benchmark prices1
Q3 '23 Q3 '22 % Δ 9M 2023 9M 2022 % Δ Q2 '23 % Δ
Ammonia NW Europe, CFR $/mt 419 1,199 (65%) 498 1,258 (60%) 386 8%
Ammonia Middle East, FOB $/mt 310 923 (66%) 394 1,006 (61%) 256 21%
Granular Urea Egypt, FOB $/mt 422 775 (46%) 389 803 (52%) 335 26%
Granular Urea Middle East, FOB $/mt 380 626 (39%) 347 708 (51%) 302 26%
Natural gas TTF (Europe) $ / mmBtu 10.6 61.0 (83%) 12.9 41.3 (69%) 11.4 (7%)
Natural gas Henry Hub (US) $ / mmBtu 2.7 7.9 (66%) 2.6 6.8 (62%) 2.3 16%
1Source: CRU, MMSA, ICIS, Bloomberg
In Q3 2023, ammonia Middle East benchmark were down 66% YoY, while the urea Egypt benchmark price was
down 46%. Compared to Q2 2023, the ammonia Middle East benchmark was up 21%, while the urea Egypt
benchmark price was up 26%.
6Q3 2023 Results MD&A Report
Segment overview Q3 2023
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 511.0 14.1 - 525.1
Gross profit 155.0 (1.2) - 153.8
Operating profit 130.9 0.5 (12.1) 119.3
Depreciation & amortization (70.7) (1.2) (0.6) (72.5)
EBITDA 201.6 1.7 (11.5) 191.8
Adjusted EBITDA 208.2 1.7 (10.9) 199.0
Segment overview Q3 2022
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 1,020.6 297.3 - 1,317.9
Gross profit 571.0 12.9 - 583.9
Operating profit 549.5 12.9 (13.2) 549.2
Depreciation & amortization (59.7) - (0.4) (60.1)
EBITDA 609.2 12.9 (12.8) 609.3
Adjusted EBITDA 606.2 12.9 (12.8) 606.3
Segment overview 9M 2023
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 1,623.8 146.5 - 1,770.3
Gross profit 596.5 0.8 - 597.3
Operating profit 534.7 0.8 (40.0) 495.5
Depreciation & amortization (203.1) (2.9) (2.8) (208.8)
EBITDA 737.8 3.7 (37.2) 704.3
Adjusted EBITDA 746.5 3.7 (35.7) 714.5
Segment overview 9M 2022
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 3,286.4 687.6 - 3,974.0
Gross profit 1,908.4 16.1 (5.0) 1,919.5
Operating profit 1,841.0 16.1 (43.1) 1,814.0
Depreciation & amortization (184.1) - (0.8) (184.9)
EBITDA 2,025.1 16.1 (42.3) 1,998.9
Adjusted EBITDA 2,022.1 16.1 (37.3) 2,000.9
7Q3 2023 Results MD&A Report
Financial Highlights
Summary results
Consolidated revenue decreased by 60% to $525 million in the third quarter of 2023 compared to the same
quarter in 2022, driven by lower selling prices as well as lower sales volumes due to a decline in third-party traded
volumes. Meanwhile, adjusted EBITDA declined by 67% YoY to $199 million in Q3 2023 compared to $606 million
in Q3 2022.
Q3 2023 adjusted net profit attributable to shareholders was $41 million compared to an adjusted net profit
attributable to shareholders of $292 million in Q3 2022. Reported net profit attributable to shareholders was
$40 million in Q3 2023 compared to a net profit attributable to shareholders of $292 million in Q3 2022.
Consolidated statement of income
$ million Q3 2023 Q3 2022 9M 2023 9M 2022
Net revenue 525.1 1,317.9 1,770.3 3,974.0
Cost of sales (371.3) (734.0) (1,173.0) (2,054.5)
Gross profit 153.8 583.9 597.3 1,919.5
Other income 0.3 3.0 1.9 3.0
SG&A (34.8) (37.6) (103.6) (107.6)
Other expense - (0.1) (0.1) (0.9)
Adjusted EBITDA 199.0 606.3 714.5 2,000.9
EBITDA 191.8 609.3 704.3 1,998.9
Depreciation & amortization (72.5) (60.1) (208.8) (184.9)
Operating profit 119.3 549.2 495.5 1,814.0
Interest income 4.2 0.3 9.9 1.2
Interest expense (31.8) (19.7) (84.5) (61.7)
Other finance (expense)/income 10.0 (36.7) (7.2) (15.5)
Net finance costs (17.6) (56.1) (81.8) (76.0)
Net profit before tax 101.7 493.1 413.7 1,738.0
Income tax (32.5) (73.6) (47.3) (228.3)
Net profit 69.2 419.5 366.4 1,509.7
Non-Controlling Interest (29.7) (127.9) (112.0) (432.1)
Net profit attributable to shareholders 39.5 291.6 254.4 1,077.6
Adjusted net profit attributable to shareholders 41.2 291.5 260.5 1,090.7
8Q3 2023 Results MD&A Report
Reconciliation to Alternative Performance Measures
Adjusted EBITDA
Adjusted EBITDA is an Alternative Performance Measure (APM) that intends to give a clear reflection of
underlying performance of Fertiglobe’s operations. The main APM adjustments at the EBITDA level relate to the
movement in provisions, cost optimization program, insurance recovery, and pre-operating expenditures related to
projects during the quarter.
Reconciliation of reported operating income to adjusted EBITDA
$ million Q3 2023 Q3 2022 9M 2023 9M 2022 Adjustment in P&L
Operating profit as reported 119.3 549.2 495.5 1,814.0
Depreciation and amortization 72.5 60.1 208.8 184.9
EBITDA 191.8 609.3 704.3 1,998.9
APM adjustments for:
Movement in provisions - - 2.1 5.0 Cost of sales
Cost of sales and
Cost optimization program 6.6 - 6.6 - SG&A expense
Insurance recovery - (3.0) - (3.0) Other income
Pre-operating expenditures related to projects 0.6 - 1.5 - SG&A expense
Total APM adjustments 7.2 (3.0) 10.2 2.0
Adjusted EBITDA 199.0 606.3 714.5 2,000.9
Adjusted net profit attributable to shareholders
At the net profit level, the main APM adjustments relate to the impact on non-cash foreign exchange gains and
losses on USD exposure, other financial expense, as well as related impacts on non-controlling interest and tax.
Reconciliation of reported net profit to adjusted net profit
$ million Q3 2023 Q3 2022 9M 2023 9M 2022 Adjustment in P&L
Reported net profit attributable to shareholders 39.5 291.6 254.4 1,077.6
Adjustments for:
Adjustments at EBITDA level 7.2 (3.0) 10.2 2.0
Finance income
Forex loss/(gain) on USD exposure (10.9) 39.4 0.4 6.4 and expense
Other financial expense - 0.3 - 10.0 Finance expense
Uncertain tax
NCI adjustment / uncertain tax positions 7.0 (37.6) (2.9) (6.1) positions / minorities
Tax effect of adjustments (1.6) 0.8 (1.6) 0.8 Taxes
Total APM adjustments at net profit level 1.7 (0.1) 6.1 13.1
Adjusted net profit attributable to shareholders 41.2 291.5 260.5 1,090.7
9Q3 2023 Results MD&A Report
Free Cash Flow and Net Debt/(Cash)
Free cash flow before growth capex amounted to $126 million in Q3 2023, compared to $189 million in the same
period last year, reflecting performance for the quarter, working capital inflows, maintenance capital expenditures,
net interest, tax and lease payments.
Total cash capital expenditures including growth capex were $33 million in Q3 2023 compared to $24 million in Q3
2022, of which $29 million was related to maintenance capital expenditures, compared to $18 million in the same
period last year.
Reconciliation of EBITDA to Free Cash Flow and Change in Net Debt/(Cash)
$ million Q3 2023 Q3 2022 9M 2023 9M 2022
EBITDA 191.8 609.3 704.3 1,998.9
Working capital 5.1 (50.2) (1.7) (36.6)
Maintenance capital expenditure (28.8) (18.4) (70.5) (38.2)
Tax paid (14.2) (35.9) (47.0) (169.6)
Net interest paid (28.4) (16.8) (55.2) (39.8)
Lease payments (6.8) (3.7) (17.7) (10.7)
Dividends paid to non-controlling interests and withholding tax - (368.3) (83.1) (435.6)
Ecremage 7.7 73.3 28.6 230.4
Free Cash Flow 126.4 189.3 457.7 1,498.8
Reconciliation to change in net debt/(cash):
Growth capital expenditure (4.3) (5.1) (9.8) (9.3)
Other non-operating items (12.1) (3.9) 1.0 (6.8)
Net effect of movement in exchange rates on net debt/(cash) (15.1) 18.7 (5.7) (6.5)
Dividend to shareholders - - (700.0) (340.0)
Other non-cash items (0.6) (0.3) (2.0) (5.9)
Net Cash Flow in Net Debt/(Cash) 94.3 198.7 (258.8) 1,130.3
10Q3 2023 Results MD&A Report
Investor and Analyst Conference Call
On 7 November 2023 at 4:00 PM UAE (12:00 PM London, 7:00 AM New York), Fertiglobe will host a conference
call for investors and analysts. To access the call please dial:
International: +44 20 4587 0498
UAE: +971 800 0357 04553
UK: +44 20 4587 0498 / Toll free: +44 800 358 1035
United States: +1 646 787 9445 / Toll Free: +1 855 979 6654
Passcode: 512501
Participants may also join via the webcast. Please pre-register and join here.
About Fertiglobe:
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, and an early mover in
sustainable ammonia. Fertiglobe’s production capacity comprises of 6.6 million tons of urea and merchant
ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria, making it the largest producer of
nitrogen fertilizers in the Middle East and North Africa (MENA), and benefits from direct access to six key ports
and distribution hubs on the Mediterranean Sea, Red Sea, and the Arab Gulf. Headquartered in Abu Dhabi
and incorporated in Abu Dhabi Global Market (ADGM), Fertiglobe employs more than 2,700 employees and
was formed as a strategic partnership between OCI Global (“OCI”) and the Abu Dhabi National Oil Company
(“ADNOC”). Fertiglobe is listed on the Abu Dhabi Securities Exchange (“ADX”) under the symbol “FERTIGLB” and
ISIN “AEF000901015. To find out more, visit:www.fertiglobe.com.
For additional information, contact:
Fertiglobe Investor Relations: For additional information on Fertiglobe:
Rita Guindy www.fertiglobe.com
Director
Email: rita.guindy@fertiglobe.com
investor.relations@fertiglobe.com
11 | positive |
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PPaaggee 11 ooff 44DocuSign Envelope ID: 4775481F-CD21-45E0-821B-18ADB8E9BFEE
Julphar
inlin,l,
a_4_11gaJI ciLci it
Gulf Pharmaceutical Industries
The operational performance of the Company has shown a
strong and continued positive trend while overcoming
geopolitical challenges which is evident by the increase in net
Summary of operational performance during sales as compared to Q2 2021.
the financial period Q2 2022 production output remained strong with the
highest level in first half of the year in comparison with the
last 4 years evidencing the strong progress towards strategic
roadmap
Key figures Q2 2022 Q2 2021*
Net sales (mAED) 419.9 220.0
Gross margin (%) 34% 48%
Net profit (mAED) 5.2 73.4
EBITDA from continuing 44.2 89.4
operations (mAED)
EBITDA from continuing 44.2 47.6
operations - normalized
(mAED)
Summary of profit and loss during the financial
Plant Pharmacies LLC (“Planet”) financial results were fully
period
consolidated in Julphar Group from 1 July 2021. During Q2
2022, Planet contributed 239.1 mAED. The Group’s gross
margins were affected by Planet’s lower gross margin on
distribution business. However, the gross margins continued
to be sustained and reached 34% in Q2 2022 as compared to
48% in Q2 2021 (if normalized, the gross margins were 35%
in Q2 2021 after eliminating the one-time events).
*after reclassification of Julphar Ethiopia as ‘discontinued
operations’.
The total equity of the Group decreased by 3.8 mAED and
reaching to 960.0 mAED. The decline was due to foreign
currency translation reserve by 24.4 mAED and fair value
Summary of financial position as at the end of
reserve by 1.6 mAED. The decline is supported by the
the financial period
increase in cashflow hedge reserve by 15.1 mAED.
No significant changes in the financial position of the Group
compared to the year-end 2021.
Cashflow used in operating activities reached -1.2 mAED
Summary of cash flows during the financial
during the period from January to June 2022 as compared to
period
-29.7 mAED in 2021. The cashflow from investing activities
Page 2 of 4DocuSign Envelope ID: 4775481F-CD21-45E0-821B-18ADB8E9BFEE
has also contributed 6.4 mAED which is also supported by
cashflow from financing activities of 17.5 mAED.
Net sales 419.9 mAED
Main performance indicators Net profit 5.2 mAED
EBITDA from continuing operations 44.2 mAED
The size of the pharmaceutical market in Middle East &
North Africa is valued at USD 44.8 bn in 2021 and is
expected to reach USD 56 bn in 2025. The pharma market is
expected to grow at a CAGR of 5.7%.
Generics are showing about 9.5% CAGR in the private
Expectations for the sector and the company's segment of the key markets, while the total market is
role in these expectations growing by 7.4% CAGR in the private segment of key
markets (UAE, KSA, Egypt, Algeria, Tunisia, Jordan, Kuwait
and Lebanon). It is expected that the generics market will
maintain higher growth for reasons like public budgetary
pressures, the support for the local manufacturers and patent
expiry. (Source IQVIA Data)
UAE witnessed a 2.2% real GDP growth in 2021. Continued
government stimulus, a gradual easing of the pandemic
impact, Expo 2020, etc., are helping the economy to revert to
Expectations regarding the economy and its
its pre-COVID-19 crisis level, with full recovery expected by
impact on the company and the sector
2022. The economy is expected to grow by 4.2% in 2022.
Source: Oxford economics, Reuters, IMF, Bloomberg,
Moody’s, ENBD, Central Bank UAE
The future plans for growth of the Company are as follows:
1. Focus on strategic areas of business as the company
has divested from non-core subsidiaries.
2. Continue retail pharmacies expansion in UAE and KSA
3. Strengthen sales organization in core markets and
increase market share with existing portfolio.
Future plans for growth and changes in
4. New alliances and partnerships to strengthen the
operations in future periods
product portfolio of the company.
5. Launch new products in core therapeutic areas and
new therapeutic areas.
6. Invest in capital expenditure to increase production
capacity and new manufacturing technologies and
improve operations efficiency.
Page 3 of 4DocuSign Envelope ID: 4775481F-CD21-45E0-821B-18ADB8E9BFEE
The Group continues to invest in capital expenditure for
achieving targeted growth and sustained performance by:
1. Expanding the product portfolio with investing in new
product dossiers, including signing of exclusive license
The size and impact of current and projected
and production agreement with Quantum Genomics
capital expenditures on the company
for Firibastat
2. Continuing upgrading the existing production facilities
3. Redesigning current processes to address new
requirements from government authorities
The implementation of the following projects have been
The developments of the implementation of
discussed in the Board of Directors’ meetings:
projects, plans and transactions and deals that
1. Growth strategy 2030
were discussed by the company's board of
2. New products launch to add in the product portfolio
directors in the report for the previous fiscal
3. License agreement for co-development of products
year
4. Divestment of non-core areas of business
The name of the chairman of the company or
Sheikh Saqr Humaid AlQasimi
the authorized signatory
DocuSigned by:
Signature and Date 11 August 2022
-
. 3D4BD08AC252475...
Company’s Seal
Page 4 of 4 | positive |
Dubai Investments reports a 227% surge in net profit for
the nine-month period ended September 30, 2022
Dubai, 10th Nov 2022 – Dubai Investments PJSC [DFM: DIC], the leading diversified investment
company listed on the Dubai Financial Market, has reported net profit of AED 1,489 million for
the period ended September 30, 2022, an increase of 227%, as compared to AED 456 million for
the nine-month period last year.
The profit is higher by AED 1,033 million as compared to the same period last year mainly due to
the gain on disposal of 50% controlling interest and fair value gain on retained investment in
Emirates District Cooling (Emicool) LLC amounting to AED 980 million. The Group’s
manufacturing, contracting and services segment has also continued its strong performance.
Total income for the Group grew to AED 3.3 billion as compared to AED 2.6 billion for the nine-
month period ended 30 September 2022, compared to the same period last year.
Khalid Bin Kalban, Vice Chairman and CEO of Dubai Investments said, “The Group has
maintained momentum and delivered consistent performance throughout this year, reflecting
the resilience of the business model. The exceptional performance this quarter is a result of
unlocking substantial value through an organized divestment process, testifying Dubai
Investments’ strategy for value creation. In line with the Group’s strategy to deliver superior
returns to the shareholders, an interim dividend of 7.5% was approved during this quarter. The
Group is focussed to take appropriate measures related to strategic investments and will
implement planned exits from mature assets over the coming years.”
ENDS | neutral |
ADNOC Classification: Public
Media Release:
ADNOC Gas to Distribute Inaugural Interim Cash
Dividend of $1.625 Billion
Company intends to pay a further final cash dividend of $1.625
billion (AED5.968 billion) for the financial year 2023 in Q2 2024
Dividend payment is underpinned by ADNOC Gas’ strong and
visible future cash flows
Abu Dhabi, UAE – November 14 2023: ADNOC Gas plc (together with its direct and indirect
subsidiaries, “ADNOC Gas” or the “Company”) (ADX symbol: “ADNOCGAS” / ISIN:
“AEE01195A234”), a world-class integrated gas processing company, today announced that
its Board of Directors has approved an inaugural interim cash dividend (interim dividend) of
$1.625 billion (AED5.968 billion) for distribution on 14 December 2023, equivalent to 7.776 fils
per share. The interim dividend will be paid to shareholders who own ADNOC Gas shares on
the record date of 24 November 2023.
Ahmed Alebri, Chief Executive Officer of ADNOC Gas, commented: “In line with ADNOC
Gas’ growth strategy of expanding our portfolio while also generating attractive shareholder
returns, I am delighted to announce the Board’s approval of our inaugural interim dividend.
This not only underscores our robust financial performance in the first half, but also our
commitment to rewarding our shareholders.
“Our abundant and high-quality feedstock and unwavering commitment to operational
excellence enable us to continue delivering across a diverse and highly attractive product
portfolio. This not only allows us to meet current market demands, but also positions us with
confidence to broaden our geographical reach and venture into new territories, exploring new
revenue streams that hold the potential to unlock additional value for shareholders.
“This approach underscores our dedication to thriving in a dynamic business landscape while
delivering robust returns to investors.”ADNOC Classification: Public
ADNOC Gas expects to pay another $1.625 billion (AED5.968 billion) as final cash dividend
for the financial year 2023 in the second quarter of 2024. The Company aims to increase the
annual dividend payment from $3.25 billion by 5% per annum on a per-share basis from 2024
to 2027. This reflects ADNOC Gas’ confidence in its strong and visible future cash flows, that
allows for both investment in long-term growth while also providing stable shareholder returns.
Continuing focus on investments and growth
ADNOC Gas continues to leverage opportunities arising from ADNOC’s integrated gas
masterplan, which links every part of the gas value chain in the UAE, ensuring a sustainable
and economic supply of natural gas to meet local and international demand. The plan includes
new approaches and technologies to enable increased gas recovery from existing fields and
the development of untapped resources whilst remaining fully committed to the
decarbonization of operations and the UAE’s and ADNOC’s sustainability goals.
Key dates:
Board of Directors’ approval 14 November 2023
Entitlement date (last day to purchase) 22 November 2023
Ex-Dividend date 23 November 2023
Record date 24 November 2023
Payment date 14 December 2023
About ADNOC Gas
ADNOC Gas, listed on the ADX (ADX symbol: “ADNOCGAS” / ISIN: “AEE01195A234”), is a
world-class, large-scale integrated gas processing company operating across the gas value
chain, from receipt of raw gas feedstock from ADNOC through large, long-life operations for
gas processing and fractionation to the sale of products to domestic and international
customers. ADNOC Gas supplies approximately 60% of the UAE’s sales gas needs and
supplies end-customers in over 20 countries. To find out more, visit: www.adnocgas.ae
(X) @ADNOCGas
For investor inquiries, please contact:
Zoltan Pandi, Vice President, Investor Relations
+971 (2) 6017087, ir@adnocgas.ae
For media inquiries, please contact:
Mayyasa Saeed Al Yammahi, External Communications Manager, Communications
+971 50 1171779, mayyasa@adnoc.aeAADDNNOOCC CCllaassssiiffiiccaattiioonn:: Public
Media Release:
ADNOC Gas Reports 13% Q-o-Q Increase in Q3 2023 Net
Income to $1.1 Billion, Demonstrating Resilient Financial
Performance
Company’s Q-o-Q revenue grows by 8% to $5.8 billion, underscoring its ability
to capitalize on optimization and growth opportunities
Robust nine-month Net Income of $3.4 billion is supported by growth in
production and sales volumes of liquids
Board approves inaugural interim cash dividend of $1.625 billion; free cash flow
generated in first nine months is sufficient to cover full-year dividend of $3.25
billion
Abu Dhabi, UAE – November 14, 2023: ADNOC Gas plc (together with its direct and indirect subsidiaries,
“ADNOC Gas” or the “Company”) (ADX symbol: “ADNOCGAS” / ISIN: “AEE01195A234”), a world-class
integrated gas processing company, today announced its financial results for the three months and nine months
ended September 30, 2023 (“Q3 2023” and “9M 2023”). The unaudited pro forma financial results of the Company
for the comparative period (i.e., the three and nine-month period ended September 30, 2022 (“Q3 2022” and “9M
2022”) noted herein are reported on a Pro Forma Adjusted basisi.
Robust financial performance demonstrates resiliency and ability to capitalize on opportunities
ADNOC Gas continued to deliver robust financial and operational performance in a volatile market environment
marked by consumer and geo-political pressures. The Company’s Q3 2023 revenue grew to $5.807 billion,
representing an 8% growth compared to Q2 2023, in line with the improving price environment and higher sales
volumes. Despite market volatility, the Company maintained stable margins in line with its guidance and previous
periods. Further, ADNOC Gas continued to deliver on its growth strategy, focusing on increased efficiency to
enable the export of higher-margin liquids.
The Company’s Q3 2023 EBITDA improved to $1.863 billion, up 5% compared to Q2 2023, while Net Income for
the quarter increased by 13% quarter-on-quarter (Q-o-Q) to $1.116 billion. These results underscore the business’
resilience and its ability to capitalize on optimization and growth opportunities. A nine-month Net Income of $3.375
billion reflects the lower pricing environment compared to the same period of 2022.AADDNNOOCC CCllaassssiiffiiccaattiioonn:: Public
Ahmed Alebri, Chief Executive Officer of ADNOC Gas, commented: “ADNOC Gas has delivered robust
financial results for the first nine months of the year despite a lower pricing environment compared to 2022. In
the third quarter, we maintained stable EBITDA and Net Income margins, demonstrating our resilience and ability
to generate attractive returns despite market headwinds.
“We have made significant progress, delivering on our growth strategy through substantial investments with $5.6
billion in contracts awarded in the first nine months of 2023. This includes the Engineering Procurement and
Construction contract awarded for the construction of carbon capture units, which is a significant milestone in our
decarbonization journey, helping us further decarbonize our operations in line with ADNOC’s bold Net-Zero by
2045 ambition.
“Expanding further into low carbon products, in the first nine month of the year, ADNOC Gas has concluded new
LNG supply deals with a total value of $9-12 billion. We have expanded our international customer base through
newly signed agreements with very reputable counterparties, mainly from Asia.
“I’m pleased to announce that our strong free cash-flow generation during the first nine months of the year fully
covers our full-year dividend for 2023. In line with our previous shareholder guidance, we will distribute our
inaugural interim cash dividend in December this year.”
Continuing focus on investments and growth: $5.6 billion in contracts awarded in 2023
So far in 2023, ADNOC Gas has awarded contracts totaling $5.6 billion. As part of its growth strategy, the
Company recently awarded a $3.6 billion contract to commission new capacity and expand its gas processing
facilities in the UAE, enabling optimized supply to the Ruwais Industrial Complex. In addition, the Company also
awarded a $615 million contract for a carbon capture project. This follows the Q2 award of $1.34 billion in
contracts for expanding its natural gas pipeline network as part of the ESTIDAMA program, aimed at enabling
the supply of higher volumes of natural gas to customers in the Northern Emirates.
ADNOC Gas continues to leverage opportunities arising from ADNOC’s integrated gas masterplan which links
every part of the gas value chain in the UAE, ensuring a sustainable and economic supply of natural gas to meet
local and international demand.
New LNG supply deals concluded worth between $9 billion and $12 billion
ADNOC Gas continues to capitalize on the growing global demand for natural gas and has signed LNG supply
deals valued between $9 billion and $12 billion this year. These agreements, signed with reputable counterparties
like Japan Petroleum Exploration Company Limited, Indian Oil Corporation Limited, PetroChina International Co.,
Ltd and JERA Global Markets, further strengthen ADNOC Gas’ position as a global, stable and reliable LNG
supplier with the capacity and capability to meet both local and international demand.
Strong growth in line with the UAE’s Net-Zero 2050 ambition
ADNOC Gas is fully aligned with the ambitions of ADNOC Group and the UAE to reduce greenhouse gas
emissions. The Company is a key enabler in delivering the Group’s 25% emissions intensity reduction target by
2030, the UAE’s Net-Zero by 2050 ambition and ADNOC’s own Net-Zero by 2045 target. In line with the broader
ESG strategy and as part of ADNOC’s accelerated decarbonization plan, the Company recently awarded a
contract for the construction of carbon capture units, pipeline facilities and a network of wells for carbon dioxideAADDNNOOCC CCllaassssiiffiiccaattiioonn:: Public
injection at the Habshan gas processing plant, with a carbon emission reduction capacity of 1.5 million tons per
annum.
Interim dividend approved, dividend guidance maintained
For the financial year 2023, ADNOC Gas expects to pay its inaugural interim cash dividend of $1.625 billion with
payments commencing on 14 December 2023, and a further $1.625 billion in Q2 2024. Following the annual cash
dividend payment of $3.25 billion for 2023, the Company expects an annual dividend growth of 5% per share
over the next four years, underscoring the strength and visibility of ADNOC Gas’ future cash flows.
----ENDS----
US $ Million 9M 22 9M 23 YoY % Q3 22 Q2 23 Q3 23 YoY % QoQ %
Pro Forma Pro Forma
Adjusted
9M 23 vs.
Adjusted
Q3 23 vs. Q3 23 vs.
9M 22 Q3 22 Q2 23
results results
Revenue 19,898 16,430 -17% 6,613 5,397 5,807 -12% 8%
COGS -11,681 -9,481 -19% -3,908 -3,078 -3,466 -11% 13%
Opex -1,468 -1,546 5% -521 -553 -479 -8% -13%
EBITDA 6,748 5,403 -20% 2,185 1,766 1,863 -15% 5%
Net Income 3,713 3,375 -9% 1,161 984 1,116 -4% 13%
EBITDA Margin 34% 33% -1% 33% 33% 32% -1% -1%
Capital
-482 -746 55% -193 -226 -347 80% 54%
Expenditure
Free Cash Flow 4,205 3,6252 -14% 1,324 1,5992 1,3072 -1% -18%
i ADNOC Gas was incorporated in the Abu Dhabi Global Market, Abu Dhabi, UAE on 8 December 2022 and the relevant
assets were contributed to ADNOC Gas effective 1 January 2023 as part of a reorganisation (the “Reorganisation”) that
included the entry into a gas supply and purchase agreement, a transitional marketing and transportation agreement, a
sulphur sales and marketing agreement, a pipelines use and operation agreement, a re-injection gas sale agreement and
certain lease agreements. The unaudited pro forma financial results for 9M 2022 presented in this document give effect to
the impact of the Reorganisation as if the Reorganisation had taken place on 1 January 2022. The unaudited pro forma
financial results for 9M 2022 have been prepared for illustrative purposes only and are based on available information and
certain assumptions and estimates that we believe are reasonable and may differ materially from the actual amounts that
would have been achieved had the Reorganisation taken place on 1 January 2022.
2. As per the audited financial statementsAADDNNOOCC CCllaassssiiffiiccaattiioonn:: Public
About ADNOC Gas
ADNOC Gas, listed on the ADX (ADX symbol: “ADNOCGAS” / ISIN: “AEE01195A234”), is a world-class, large-
scale integrated gas processing company operating across the gas value chain, from receipt of raw gas feedstock
from ADNOC through large, long-life operations for gas processing and fractionation to the sale of products to
domestic and international customers. ADNOC Gas supplies approximately 60% of the UAE’s sales gas needs
and supplies end-customers in over 20 countries. To find out more, visit: www.adnocgas.ae
(X) @ADNOCGas
For investor inquiries, please contact:
Zoltan Pandi
Vice President, Investor Relations
+971 (2) 6017087, ir@adnocgas.ae
For media inquiries, please contact:
Mayyasa Saeed Al Yammahi
External Communications Manager, Communications
+971 50 1171779 mayyasa@adnoc.ae14 November 2023 2023 ربمفون 14
Disclosures and Compliance Section ،،نيمرتحملا لاثتملااو حاصفلإا مسق /ةداسلا
Market Operations & Surveillance ةباقرلاو تايلمعلا ةرادإ
Abu Dhabi Securities Exchange ةيلاملا قارولأل يبظوبأ قوس
Greetings, ،،،دعبو ةبيط ةيحت
Subject: Meeting of the Board of Directors of زاغلل كوندأ ةكرش ةرادإ سلجمل عامتجإ :عوضوملا
ADNOC Gas plc (Company) held on )ةكرشلا( مهسلأاب ةدودحم ةماع ةكرش
Tuesday 14 November 2023 ربمفون 14 قفاوملا ءاثلاثلا موي دقعنملا
2023
We refer to the above matter and write to inform you ةرادإ سلجم نأب مكديفن اننإف هلاعأ عوضوملا ىلإ ةراشلإاب
that the Board of Directors of the Company held a ر صع نم ةثلاثلا ةعاسلا مامت يف هل ًاعامتجإ دقع دق ةكرشلا
meeting today, Tuesday 14 November 2023 at 3pm مادختسإ للاخ نم 2023 ربمفون 14 قفاوملا ءاثلاثلا موي
via video conference, and resolved as follows:
:يلي ام ررق ثيح ،دعُب نع روضحلا ةينقت
1. Approved the Company’s financial results for the ثلاثلا عبرلا نع ةكرشلل ةيلاملا تانايبلا ىلع ةقفاوملا .1
third quarter of the current financial year 2023 .)اهنع ةخسن قفرم( 2023 ةيلاحلا ةيلاملا ةنسلا نم
(copy attached).
2. Approved the interim cash dividends distribution فصنلا نع نيمهاسملل ةيدقن حابرأ عيزوت ىلع ةقفاوملا .2
to the Company’s shareholders for the first half هردقو غلبمب 2023 ةيلاحلا ةيلاملا ةنسلا نم لولأا
of the current financial year 2023 in the total لداعي ام( يكيرمأ رلاود 1,625,102,948
amount of USD 1,625,102,948 (equivalent to
لكل 7.776 رادقمب ،يتارامإ مهرد 5,968,190,576
AED 5,968,190,576 amounting to approximately
.)مهس
7.776 per share).
Details concerning dividends (cash): :)ةيدقن( حابرلأا تاعيزوت ليصافت
Cash Dividends ةيدقنلا تاعيزوتلا
Dividend period: Dividend for the first half فصنلا نع حابرأ تاعيزوت :حابرلأا تاعيزوت ةرتف
of the year 2023 2023 ماع نم لولأا
Amount (AED): 5,968,190,576 5,968,190,576 :)مهردلاب( ةميقلا
Last entitlement date: 22 November 2023 2023 ربمفون 22 :ءارشلل موي رخآ خيرات
Ex-dividend date: 23 November 2023 2023 ربمفون 23 :حابرلأا نم داعبتسلاا خيرات
Shareholders’ registry 24 November 2023 2023 ربمفون 24 : لجسلا قلاغإ خيرات
closing date:
Payment date: 14 December 2023 2023 ربمسيد 14 :عفدلا خيرات
All parties consent to this document being signed electronically -LGCC/INT/2023/16925(within 30 days of the 14 خيرات نم رهش للاخ(
date 14 November 2023) )2023 ربمفون
The Board also considered recent developments ةقلعتملا تادجتسملا رخآ ىلع ةرادلإا سلجم علطا امك
relating to the activities of the Company and its .اهعيراشمو ةكرشلا لامعأب
projects.
Yours sincerely, ،،،ريدقتلاو مارتحلاا قئاف لوبقب اولضفتو
_____________________________
Ahmed Mohamed Alebri يربعلا دمحم دمحأ
Acting Chief Executive Officer,
زاغلل كوندأ ةكرشل ةبانلإاب يذيفنتلا سيئرلا
ADNOC Gas plc
Copy to: Securities and Commodities Authority ن يمرتحملا علسلاو ةيلاملا قارولأا ةئيه/ةداسلا :ىلإ ةخسن
All parties consent to this document being signed electronically -LGCC/INT/2023/16925 | positive |
Agthia Group PJSC
P.O.Box 37725, 17th Floor, Al Reem Island, Abu Dhabi, UAE. • T +971 2 5960600. •. F +971 2 6726070 • www.agthia.comAGTHIA GROUP PJSC | Third Quarter 2022 Results
Strong double-digit profit growth in a peak cost environment
▪ Q3 Group revenue +20% YoY with strong growth across key Protein and Snacking segments
▪ Q3 Group gross profit +14.6% YoY with gross margin broadly in line with H1’22
▪ Q3 Group EBITDA +23% YoY reflecting strong cost discipline and productivity gains
▪ Q3 Group net profit1 +14% YoY, notwithstanding a higher interest rate environment versus the comparable period
▪ Q3 Group free cash flow +12% YoY; H1’22 dividend per share of 8.25fils approved in the quarter
Agthia Group PJSC (AGTHIA:UH) today announces its third quarter results for the three months ending 30 September
2022.
Financial highlights
Q3 revenue growth reflected robust pricing (price and volume growth of 12% and 8% respectively) and was
underpinned by strong demand in Protein and Snacking and market leadership in UAE bottled water. Year-to-date
revenue growth was +39.5% YoY, with 13% from pricing and 27% from volume.
Revenues (AED MN) FY 2021 % YoY Q3 2022 % YoY 9M 2022 %YoY
Protein & Frozen 655.5 433.2% 308.1 38.6% 878.5 135.7%
Snacking 540.1 3579.0% 182.5 68.7% 599.3 79.4%
Water & Food 940.6 -4.8% 237.7 0.7% 712.5 -0.3%
Total Consumer Business 2,136.3 89.7% 728.3 28.6% 2,190.4 54.1%
Agri-Business 931.3 -0.4% 225.2 -1.5% 758.8 9.6%
Total Group 3,067.6 48.8% 953.5 19.9% 2,949.2 39.5%
▪ Consumer business (CBD) revenue contribution increased year-on-year from 71% to 76% of group total, in line
with our strategy to diversify into high growth consumer goods categories.
- Protein & Frozen: Q3 revenue growth (+39%) reflected good portfolio and channel management, with 11%
from pricing and an additional month contribution from Atyab compared to the prior year. On a constant
currency basis, adjusting for the recent devaluation in the Egyptian pound, Q3 sales growth was 56% YoY with
volume growth of 28%.
- Snacking: Revenue growth of 69% YoY was underpinned by high-teens volume growth in our dates business
as well as expansion of the retail footprint. BMB, consolidated from the start of 2022, generated revenue of
AED 55.3m.
- Water & Food: Flat revenue growth YoY reflected lower aggregate demand across the UAE as post-pandemic
outbound travel accelerated over the summer months, and a more subdued performance in our Community
Support Division (CSD) channel. A planned focus on innovation and premiumization helped underpin our
market leading position2 in UAE bottled water across retail, with good growth in both Food Service and our 5-
gallon home delivery subscription base. High single digit growth in international markets was encouraging,
with the benefits of our recent restructuring in KSA expected to materialize in 2023.
1 Group net profit attributable to shareholder (excluding minorities)
2 27.9% value share across the retail channel in the UAE based on AC Nielsen retail audit for bottled water excluding mineral water – MAT August
2022 submission
Agthia Group PJSC
P.O.Box 37725, 17th Floor, Al Reem Island, Abu Dhabi, UAE. • T +971 2 5960600. •. F +971 2 6726070 • www.agthia.com▪ Revenue from our Agribusiness was marginally down in Q3 YoY reflecting lower demand during the summer
months, albeit up 9.6% YoY on a year-to-date basis. Proactive management of mix in the quarter supported
stronger profitability YoY, offsetting significant inflationary pressures across key commodities, with gross profit
growth year-to-date more than twice that of revenue.
Q3 Group gross profit increased 14.6% YoY to AED 268.1m. Gross margin of 28.1% was broadly in line with H1’22,
despite peak raw material pricing in the quarter, testament to group-wide initiatives on product and channel mix,
sourcing, and production. On a year-to-date basis, growth in gross profit kept pace with revenue growth, up 35.1% YoY
to AED 843.3m, with margin -93bps despite the challenging cost environment.
Gross Profit (AED MN) FY 2021 % YoY Q3 2022 % YoY 9M 2022 % YoY
Protein & Frozen 177.5 650.2% 77.6 25.8% 226.3 127.0%
Snacking 178.7 nm 57.6 68.0% 184.3 87.5%
Water & Food 376.1 -5.4% 88.3 -6.4% 266.4 -8.0%
Total Consumer Business 732.4 74.3% 223.4 17.5% 677.0 38.8%
Agri-Business 234.6 1.5% 47.2 2.8% 174.1 20.9%
Central costs (10.3) -3.4% (2.5) 15.3% (7.8) 1.2%
Total Group 956.7 49.3% 268.1 14.6% 843.3 35.1%
- Protein & Frozen: 26% growth in absolute gross profit to AED 78m driven by volume growth and pricing,
while margin contracted 257bps as we balanced higher input costs versus market share.
- Snacking: 68% growth in absolute gross profit to AED 58m with margin maintained in line with the prior year.
- Water & Food: Gross margin decline of 280bps driven by YoY softness in Q3 volumes due to the holiday
season, and peak input costs on PET and fuel.
- Agribusiness: Gross margin improvement of 88bps YoY driven primarily by an improved mix.
▪ Group EBITDA up 23% YoY to AED 127.5m, with EBITDA margin +37bps to 13.4% reflecting productivity gains and
good cost control (SG&A expense as a proportion of revenue -205bps YoY).
▪ Group net profit3 of AED 40.5m, up 14% YoY, despite an increase in interest and amortization charges and higher
minority interest versus the prior comparable period. Net profit outturn included management’s review of income
tax provisions relating to our Egyptian operations.
▪ Strong profitability and proactive management of working capital (8 days improvement in cash conversion cycle)
underpinned good profit to cash conversion with Group free cash flow of AED 199m, up 12% YoY.
▪ Strong balance sheet with Cash & Equivalents of AED 1.2bn and liquidity of AED 1.9bn; Net debt to EBITDA of 1.3x.
Strategic highlights
We made good progress through the quarter in expanding our capabilities and driving efficiencies.
3 Group net profit attributable to shareholder (excluding minorities)
Agthia Group PJSC
P.O.Box 37725, 17th Floor, Al Reem Island, Abu Dhabi, UAE. • T +971 2 5960600. •. F +971 2 6726070 • www.agthia.comExpanding capabilities
▪ Our acquisition of a majority stake in healthy snacks and coffee company, Auf Group, remains on track and will
enhance our footprint in the attractive Egyptian snacking market and broaden our branded consumer product
portfolio. Ahead of final regulatory approvals, during the quarter we undertook a detailed assessment of the short
and medium-term growth, operational and cost synergies across all Agthia Business Units.
▪ Finalized our 5-year digital roadmap. Devised in conjunction with Bain & Company, this roadmap is intended to
transform Agthia from a product-led to data-led consumer centric organization through 1) creating a digital
ecosystem to deliver breakthrough customer experiences and insights across all channels, thereby driving brand
equity 2) leveraging data as a strategic asset to increase digital revenue streams, new channels to market and
grow customer lifetime value and 3) implementing digital tools to optimize operational and process synergies
across the Group.
▪ Progressed our sustainability-focused partnership with RECAPP, with 356 tons of recyclables collected so far this
year, and a five-fold increase in PLA volumes compared to the prior year. Our 5-year sustainability plan will be
finalized in the coming weeks.
Driving efficiencies
▪ Accelerated the growth trajectory of our Al Foah dates business through our international sourcing and contract
farming program, which enables us to improve date variety and extend sourcing beyond the UAE.
▪ Agreed a strategic long-term lease covering the assets and operations of our Frozen Bakery business with the
Middle East operations of La Lorraine, a Belgian-based Bakery Group with over 80 years of milling and bakery
experience.
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, commented:
“Agthia’s strong performance this quarter demonstrates both its resilience and continued progress in integrating
acquired companies, leveraging synergies, and maintaining a profitable core. In conjunction with its clear strategic
priorities, proven execution, and strong Executive Team, I am confident that Agthia will continue to deliver value for
all stakeholders in both the near and longer-term as it transforms into a leading Food & Beverage company in the
MENAP region and beyond”.
Alan Smith, Group Chief Executive Officer, commented:
“Despite a period characterized by significant and evolving external challenges, our strong performance during Q3 is
testament to the tireless efforts and agility of all our colleagues across the Group. Our strategy to acquire, integrate
and grow attractive businesses in value-add categories continues to bear fruit. We will continue to make the right
investments to deliver quality and profitable growth, supported by the financial resources that our robust balance
sheet and strong liquidity provide, and I remain excited by the growth opportunity ahead as we continue our journey
to becoming a leading regional Food and Beverage company”.
-End of announcement –
Khalifa Sultan Al Suwaidi
Chairman
08 November 2022
Agthia Group PJSC
P.O.Box 37725, 17th Floor, Al Reem Island, Abu Dhabi, UAE. • T +971 2 5960600. •. F +971 2 6726070 • www.agthia.comConference Call details
The Consolidated Interim Financial Statements for the Nine Months ended 30th September 2022 will be available
through the following link on Agthia Website: https://www.agthia.com/investors/quarterly-results/.
A conference call for analysts and investors will be held at 5:00pm UAE time on November 9th 2022. The presentation
accompanying the call will be available on Agthia Group’s website under the Investors section:
https://www.agthia.com/investors/results-call-materials/
Investor Relations Enquiries
Agthia Group PJSC:
Roger Tejwani, Director of Investor Relations
+971 56 400 4596
Sahar Srour, Senior Investor Relations Manager
+971 56 680 4872
Agthia Group PJSC and its management may make certain statements that constitute “forward-looking statements” with respect to the financial
condition, results of operations and business of the Group. These statements can be identified by the fact that they do not relate strictly to historical or
current facts. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “intends,” “plans,”
“goals,” “believes,” “continues” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and
“could.” Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of Agthia Group PJSC to be materially different from any future results, performance or achievements expressed or
implied by these forward-looking statements. Examples of such statements include, but are not limited to, comments with respect to: 1. outlook for the
markets for products; 2. expectations regarding future product pricing; 3. outlook for operations; 4. expectations regarding production capacity and
volumes; 5. objectives; 6. strategies to achieve those objectives; 7. expected financial results; 8. sensitivity to changes in product prices; 9. sensitivity to
key input prices; 10. sensitivity to changes in foreign exchange rates; 11. expectations regarding income tax rates; 12. expectations regarding
compliance with environmental regulations; 13. expectations regarding contingent liabilities and guarantees; 14. expectations regarding the amount,
timing and benefits of capital investments. Although Agthia Group PJSC believes it has a reasonable basis for making these forward-looking statements,
readers are cautioned not to place undue reliance on such forward-looking information. By its nature, forward-looking information involves numerous
assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predictions, forecasts and other
forward-looking statements will not occur. These factors include, but are not limited to: 1. assumptions in connection with the economic and financial
conditions in the UAE, Middle East, and globally; 2. effects of competition and product pricing pressures; 3. effects of variations in the price and
availability of manufacturing inputs; 4. various events which could disrupt operations, including natural events and ongoing relations with employees;
5. impact of changes to or non-compliance with environmental regulations; 6. impact of any product liability claims in excess of insurance coverage; 7.
impact of future outcome of certain tax exposures; 8. effects of currency exposures and exchange rate fluctuations. The above list of important factors
affecting forward-looking information is not exhaustive. Additional factors are noted elsewhere and reference should be made to the other risks
discussed in filings with UAE securities regulatory authorities. Except as required by applicable law, Agthia Group PJSC does not undertake to update
any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of the Company, whether as a result of
new information, future events or otherwise, or to publicly update or revise the above list of factors affecting this information.
Agthia Group PJSC
P.O.Box 37725, 17th Floor, Al Reem Island, Abu Dhabi, UAE. • T +971 2 5960600. •. F +971 2 6726070 • www.agthia.com | positive |
Abu Dhabi National Insurance Company P.J.S.C.
Board of Directors' Statement
For the nine-month period ended 30 September 2022
The Board of Directors is pleased to report Abu Dhabi National Insurance Company's financial results for
the nine months ended 30 September 2022. ADNIC continued to deliver steady performance as the UAE
returns to pre-covid conditions.
ADNIC has delivered solid top-line growth with gross written premiums growing by 32.4 % to AED 4.29
billion with strong net profit reaching AED 267.6 million for the nine months ending 30 September 2022.
The growth was driven by robust growth in the commercial division of 50.7 %, and stable growth in
consumer lines of 10.0% despite pricing pressure and strong competition.
Loss ratios continued to be stable despite economic activity and consumer behaviour returning to pre
covid levels. The commercial division continues to demonstrate solid underwriting results and the
performance of consumer lines remains stable.
Investment income was impacted by high mark-to-market volatility across several asset classes with
most major asset classed down around 20% for the year to date. Consequently, Investment Income was
lower by 25.5%. Our expense management continues to be robust and growth in expenses (excluding
doubtful debts) of 12.2% is lower than premium growth. We continue to make investments in new
technologies and capabilities in the digital space.
Sustainability will remain a key pillar of ADNIC's strategy moving forward, and we will continue to ensure
sustainable operation and practices across our business, community and the environment in which we
operate.
On behalf of the Board of Directors, I would like to thank all our partners and stakeholders for their
continuous support that helps ADN IC be one of the UAE' s most trusted insurers. We are grateful for the
guidance received by the UAE's leadership and extend our sincere gratitude to His Highness Sheikh
Mohamed Bin Zayed Al Nahyan, President of the UAE and His Highness Sheikh Mohammed Bin Rashid Al
Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai.
I want to thank our employees for their hard work, dedication and their ability to provide exceptional
services. To our customers and shareholders, thank you for your continued trust in us.
Sheikh Mohamed Bin Saif AI-Nahyan
Chairman of the Board | positive |
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Commercial Bank of Dubai
Management Discussion and Analysis Report
Third Quarter 2023
25 October 2023
Page | 1Commercial Bank of Dubai (CBD) reports net profit of
AED 1,936m, up 46.4% on the prior period
Key Performance Indicators
AED 1,936m 21.38% 23.72%
Net Profit Return on Equity Cost to Income
Capital Adequacy
AED 126b 13.34%
Assets CET1 ratio
16.80%
Ratio
Prudent provisioning for
Excellent performance uplift in
expected credit losses
9M 2023 compared to 9M 2022
Net impairment allowances were
Net profit of AED 1,936 million up
AED 899 million. Coverage ratio at
46.4% versus the prior comparative
80.60%, up 570 bps compared to
period
9M 2022
Strong loan growth whilst
maintaining healthy liquidity,
Cost to income ratio funding and capital ratios
Excellent cost-to-income ratio at Gross loans were AED 88.5 billion,
23.72% an increase of 11.1% compared to
December 2022
Page | 2Dubai, 25th October 2023:
Commercial Bank of Dubai (CBD) today reported its financial results for
the first nine months of 2023.
Commercial Bank of Dubai has delivered a record net profit of AED 1,936 million for the first nine
months of 2023, up 46.4% compared to the corresponding period in 2022. Outstanding revenue
contribution across Net Interest and Other Operating Income, backed by strong loan growth
generated a significant rise in net profit. Notably, market interest rates remained high, which
contributed to the financial uplift. The UAE economic outlook and business confidence is strong,
supported by resilient domestic activity that should enable economic growth through 2024.
Commenting on the bank’s performance, Dr. Bernd van Linder, Chief Executive Officer, said, “CBD
has delivered a record result attributable to strong revenue growth. Overall, our net profit for the
nine months to 30 September 2023 was a record AED 1,936 million, well above the same period
last year on account of higher revenue and strong loan growth. We remain well positioned to
deliver on our strategic goals and in achieving exceptional performance outcomes in 2023 and
beyond.
In the third quarter, CBD received two prestigious awards - "Best Instant Payment Technology"
and "Payments Innovation of the Year" at the MEA Finance Magazine Leaders and Payment
Awards 2023. These awards are the result of our relentless focus on enhancing the experience of
our customers, and I am convinced that further recognition will follow as we continue to build
innovative digital solutions for our customers.
CBD is taking proactive measures to tackle climate change head-on. Our commitment to carbon
neutral operations by 2030 signifies our dedication to a sustainable future. As the bank that is
backing the nation's ambition, we take pride in aligning our efforts with the UAE's net-zero 2050
goal.”
Q3 2023 results:
►
►
Net profit was AED 1,936 million, 46.4% above the prior year comparative period.
Operating income was AED 3,716 million, up 36.6% driven by higher net interest income,
►
fees and commissions.
►
Operating expenses were AED 881 million.
►
Operating profit was AED 2,835 million, up by 42.5%.
As at 30 NSeetp itmempabiremr 2en0t2 a3ll:o wances were AED 899 million.
►
Capital ratios remained strong with the capital adequacy ratio (CAR) at 16.80%, Tier 1 ratio
at 15.65% and Common Equity Tier 1 (CET1) ratio at 13.34%, well in excess of regulatory
►
requirements.
►
Gross loans were AED 88.5 billion, an increase of 11.1% compared to 31 December 2022.
Advances to stable resources ratio (ASRR) stood at 87.23%.
Page | 3Income Statement
Operating income
for the first nine months was AED 3,716 million, up 36.6%, attributable to an
increase in Net Interest Income (NII) by 43.2% owing to loan growth and higher market rates, and
Ogrpoewrtaht iinng O etxhpere nOspeesrating Income (OOI) by 22.5% from improved business accomplishments.
were AED 881 million, with the increase in cost driven by inflation and ongoing
investments in digitisation, technology, business growth, governance and regulatory compliance.
The cost-to-income ratio remains excellent at 23.72%.
Income statement 9M 23 9M 22 YoY Var Q3 23 Q2 23 (AED Q MoQil lVioanr)
43.2% 0.6%
22.5% 7.3%
Net interest income 2,654 1,853 885 880
Total income 3,716 2,720 36.6% 1,255 1,224 2.5%
Other operating income 1,062 867 369 344
20.7% 4.1%
Operating profit 2,835 1,990 42.5% 953 934 2.0%
Operating expenses 881 730 302 290
34.6% (14.1%)
Net profit 1,936 1,322 46.4% 710 650 9.2%
Net impairment allowances 899 668 243 283
Balance Sheet
Total assets
were AED 126.0 billion as at 30 September 2023, an increase of 7.2% compared to AED
Net loans and advances
117.5 billion as at 30 September 2022.
were AED 82.9 billion, registering an increase of 4.7% compared to AED
Customers’ deposits
79.1 billion as at 30 September 2022.
were AED 86.4 billion as at 30 September 2023, representing an increase of
5.7% compared to AED 81.8 billion as at 30 September 2022. Low-cost current and savings accounts
(CASA) constitute 50.9% of the total customer deposit base, while the loan-to-deposits ratio stood
at 95.9%.
Balance sheet Sep 23 Sep 22 YoY Var Sep 23 Jun 2 3 ( AEDQ MoQil lVioanr)
5.2% 2.4%
13.3% (0.8%)
Gross loans and advances 88,478 84,068 88,478 86,401
Net loans and advances 82,889 79,138 4.7% 82,889 80,766 2.6%
Allowances for impairment 5,588 4,930 5,588 5,635
7.2% 2.4%
5.7% 0.8%
Total assets 126,024 117,531 126,024 123,129
11.7% 4.4%
Customers' deposits 86,442 81,778 86,442 85,720
Total Equity 14,951 13,387 14,951 14,319
Page | 4Asset Quality
The non-performing loan (NPL) ratio decreased to 6.49%, down from 6.73% at the end of 2022.
The net impairment charge totaled AED 899 million for the first nine months of 2023. The headline
coverage ratio increased by 71 bps to 80.60% (December 2022: 79.89%) and was 120.84% inclusive
of collateral for stage 3 loans. As at 30 September 2023, total allowances for impairments amounted
Ltoiq AuEiDd i5ty,5 a8n8d m Cilalpiointa. l position
The bank’s liquidity
position remained robust with the advances to stable resources ratio at
87.23% as at 30 September 2023 (December 2022: 87.09%), compared to the UAE Central Bank
maximum of 100%.
capital ratios
CBD’s further strengthened with the capital adequacy ratio (CAR) at 16.80%, Tier 1
ratio at 15.65% and Common Equity Tier 1 (CET1) ratio at 13.34%. All capital ratios were well above
the minimum regulatory thresholds mandated by the UAE Central Bank.
YoY Var QoQ Var
(%)
Key ratios % 9M 23 9M 22 (bps) Q3 23 Q2 23 (bps)
560 87
61 13
Return on equity 21.38% 15.78% (312) 23.13% 22.26% 31
Return on assets 2.13% 1.52% (26) 2.28% 2.15% (14)
Cost to income ratio 23.72% 26.84% 570 24.04% 23.73% (112)
Non-performing loans (NPL) 6.49% 6.75% (88) 6.49% 6.63% 167
Provision coverage 80.60% 74.90% (570) 80.60% 81.72% 105
Loan-to-deposit ratio 95.89% 96.77% 121 95.89% 94.22% 37
Advances to stable resources 87.23% 92.93% 122 87.23% 86.18% 38
Capital adequacy ratio 16.80% 15.59% 128 16.80% 16.43% 42
Tier 1 ratio 15.65% 14.43% 15.65% 15.27%
CET1 ratio 13.34% 12.06% 13.34% 12.92%
Ratings
Agency Rating Outlook Date
A-
Baa1
Fitch Ratings Stable Apr-23
Moody's Stable Oct-23
Page | 5About CBD
The bank was incorporated in Dubai, United Arab Emirates in 1969 and is registered as a Public Joint
Stock Company (PJSC).
The bank is listed on the Dubai Financial Market and is majority owned by UAE Nationals, including
20% by the Investment Corporation of Dubai (ICD). The bank employs over 1,100 staff and offers a
wide range of conventional and Islamic banking products and services to its institutional, corporate
and personal banking customers through a network of 14 branches. Moreover, the bank has invested
in an extensive network of 167 ATMs/CDMs.
For further information, kindly contact: CBD Investor Relations @ investor.relations@cbd.ae
Page | 6 | positive |
Al Yah Satellite Communications Company PJSC (“Yahsat”)
Management’s Discussion and Analysis (for the period ended 30 September 2022)
1. Highlights: exceptional third quarter 7. Next reporting date ............................................. 14
performance ......................................................... 2
8. Contacts ............................................................. 14
2. Results of operations by segment ........................ 4
9. Alternative performance measures and
3. Cash flows, liquidity and capital structure ............ 6 terms used .......................................................... 16
4. Capital expenditure ............................................... 9 10. Cautionary statement regarding forward-
looking statements ............................................. 18
5. Outlook ............................................................... 10
6. Earnings webcast ............................................... 14
This document should be read in conjunction with Yahsat’s unaudited consolidated financial statements for the period ended 30 September 2022.
Within the MD&A, we use the terms “the Group”, “Company”, “we”, and “our” to refer to Yahsat.
1. Highlights: exceptional third quarter performance
(USD millions) Q3 2022 Q3 2021 Q3 y/y1 9M 2022 9M 2021 9M y/y ∆
Revenue 109 94 16% 315 284 11% 30
Adjusted EBITDA 67 55 21% 189 171 10% 18
Margin 61.4% 58.7% 2.8% 60.1% 60.2% (0.1%)
Operating profit 31 17 83% 82 59 38% 23
Net finance (costs)/income 1 (2) (130%) (1) (15) (90%) 13
Net income (10) 13 (177%) 35 43 (19%) (8)
Margin (9.4%) 14.0% (23.4%) 11.2% 15.2% (4.1%)
Normalised results
Normalised Adj. EBITDA 67 59 13% 189 175 8% 14
Margin 61.4% 63.1% (1.7%) 60.1% 61.6% – (1.6%)
Normalised net income 30 17 75% 76 54 39% 21
Margin 27.8% 18.4% 9.4% 24.1% 19.2% – 4.9%
Yahsat delivered another set of exceptional results with third quarter revenues and EBITDA soaring by 16% and 21%
respectively year-on-year, underpinned by a stellar performance in its Managed Solutions business. This business,
together with the stable, long-term contracted Infrastructure business, serves the requirements of the UAE Government
(the “Government”, see “Alternative performance measures and terms used”) for secure satellite communications
capacity and end-to-end managed services.
Highlights for the nine-month period include:
• Revenue of USD 315 million, up 11% year-on-year, underpinned by double-digit growth in Managed Solutions
and Mobility Solutions.
• Adjusted EBITDA of USD 189 million, up 10% year-on-year, delivering a superior margin of over 60%.
1 Shows percentage changes for monetary amounts; percentage-point and multiple-amount changes for percentages and multiples
Page 2 of 18• Net finance costs of USD 1 million, a 90% reduction versus the prior year, reflecting significantly higher finance
income on over USD 500 million of cash placed in short term deposits (as at the end of the period) and lower
finance costs following the refinancing in June 2021 of the Group’s debt.
• Normalised Net Income of USD 76 million, up 39% year-on-year, achieving a strong margin of 24%.
• Net Income is normalised by adjusting for material, one-off items recorded during the current and comparative
periods that would otherwise distort the underlying, like-for-like performance of the business. 9M 2022
Normalised Net Income of USD 76 million has been adjusted for a non-cash impairment of USD 41 million in
the Group’s equity-accounted joint-venture in HPE Brazil, in which the Group owns a non-controlling 20% stake.
This reflected a rapid deterioration in the global macro-economic environment, which significantly increased the
discount rate used in assessing the recoverable amount of this investment. Similarly, the 9M 2021 Normalised
Net Income of USD 54 million has been adjusted for one-off costs relating to the prior year debt refinancing
(USD 7 million) and IPO related costs (USD 4 million).
• Contracted future revenue of USD 2.1 billion, equivalent to more than 5 times annual revenue for the full year
2021.
• Robust financial position with negative net debt and high visibility on future cash flows underpins ability to
invest in growth and sustain attractive dividend policy.
• On track to grow full year 2022 dividend by at least 2% to USD 4.39 cents per share or USD 107 million –
50% of this amount was recently paid as an interim dividend.
• Full year revenue, Adjusted EBITDA and Discretionary Free Cash Flow guidance remains unchanged.
Ali Al Hashemi, Group Chief Executive Officer of Yahsat, commented on the Group’s latest financial results:
“Yahsat has delivered another excellent performance with third quarter revenue and EBITDA growth accelerating
compared to the first half of 2022. Our core Government business has performed particularly well with quarterly revenues
in our Managed Solutions business more than doubling year-on-year. Through the procurement of the T4-NGS satellite,
which we expect to launch in the first half of 2024 and enter operations in the first half of 2025, we remain well positioned
to meet the Government’s increasing demand for advanced satellite communication solutions. T4-NGS will also strongly
support our commercial operations in Mobility Solutions, which achieved double digit revenue growth during the first nine
months of the year.
The potential procurement of two new satellites, Al Yah 4 and Al Yah 5, remains under consideration for launch in 2026,
which will secure continuity of service well beyond the lifetime of our existing fleet.
Our industry is witnessing an exciting period of significant innovation and investment. Yahsat is in a strong financial
position with a robust balance sheet and a large and visible backlog of contracted future revenues, providing it with the
capacity to invest and pursue future growth opportunities. Our recent investment and commercial agreement with eSAT
Global to develop a platform for low and very low data rate IoT sensing and tracking devices is an example of the
proactive role that Yahsat is playing in shaping the industry’s future development.”
Page 3 of 182. Results of operations by segment
Infrastructure
(USD millions) Q3 2022 Q3 2021 Q3 y/y* 9M 2022 9M 2021 9M y/y ∆
Revenue (external) 59 59 0% 178 179 (1%) (1)
Adjusted EBITDA 43 43 1% 135 137 (1%) (2)
Margin 72.8% 72.3% 0.6% 76.0% 76.6% (0.5%)
The Infrastructure segment is the Group’s largest, contributing 57% of revenue and 72% of Adjusted EBITDA for the
nine-month period (9M 2021: 63% of revenue and 80% of Adjusted EBITDA). The segment benefits from a key Capacity
Services Agreement (“CSA”) with the Government, which underpins the stable and predictable revenue and adjusted
EBITDA contributions to the Group from period to period.
Revenue for the nine-month period decreased by USD 1 million or 1%, reflecting a reallocation of C-band contract
revenue to the Managed Solutions and Data Solutions segments, from Q4 2021 onwards. Adjusted EBITDA was largely
unchanged for both the nine-month and third quarter period, with margin stable at 76%.
The segment boasts contracted future revenue of approximately USD 1.7 billion as of the end of Q3 2022, including a
15-year contract with the Government for the provision of capacity and associated services on Thuraya 4 Next
Generation System (“T4-NGS”; see “Outlook–T4-NGS update”). The T4-NGS Government contract is worth USD 708
million2, which will support revenue growth from 2025 onwards (USD 50 million2 annually; see “Outlook–Strong growth
prospects” on contracted future revenue backlog).
Managed Solutions
(USD millions) Q3 2022 Q3 2021 Q3 y/y* 9M 2022 9M 2021 9M y/y ∆
Revenue (external) 27 13 112% 67 42 59% 25
Adjusted EBITDA 20 5 nm 40 19 108% 21
Margin 72.4% 42.2% 30.2% 60.0% 45.7% 14.3%
The Managed Solutions segment, contributing 21% of revenue and 21% of Adjusted EBITDA for the nine-month period
(9M 2021: 15% of revenue and 11% of Adjusted EBITDA), delivers critical, secure, value-added solutions primarily to
the Government and other UAE and international governmental entities. This also includes operation and maintenance
(O&M) services to the Government, related to supporting the infrastructure capacity contracted to the Government,
which is based on multi-year engagements.
Strong momentum continued in this segment with revenues up USD 25 million or 59% versus the prior-year nine-month
period and Q3 revenues more than doubling year-on-year. Adjusted EBITDA more than doubled to USD 40 million over
the nine-month period. This reflected the new Managed Services Mandate awarded by the Government earlier this year,
valued at USD 247.5 million, with service revenue recognised equally over the next 5 years at USD 47.5 million per year
2 Under the contract, the Group is entitled to receive USD 300 million in advance payments, to be offset over the contract period against invoices for
capacity services. The Group received USD 150 million advance in Q3. Under IFRS 15, as a significant part of the contract price is received years ahead
of service provision, the contract is deemed to contain a significant financing component and requires the contract value to be adjusted to include the
imputed finance cost relating to the advance payments. Accordingly, the future revenue is adjusted to include USD 46.3 million (imputed finance cost
relating to the USD 150 million), bringing the total transaction price to $754.7 million as of the end of Q3 2022 and future annual revenue of USD 50.3
million. The imputed finance cost will be recorded as a charge from the date of receipt of advance payment until the advance is fully offset.
Page 4 of 18and a USD 10 million component recognised in the first half of 2022. This Mandate replaces and augments the previous
contract, which included only the operations & maintenance (O&M) services for USD 32 million of revenue per year, and
which expired at the end of 2021. The new mandate includes technology management services in addition to O&M and is
the primary driver for most of the variance in revenues and Adjusted EBITDA. Adjusted EBITDA margin increased to 60%,
materially higher than previous margins of 40-50%, reflecting the timing of related costs associated with this Mandate.
Mobility Solutions
(USD millions) Q3 2022 Q3 2021 Q3 y/y* 9M 2022 9M 2021 9M y/y ∆
Revenue (external) 16 17 (2%) 53 46 15% 7
Adjusted EBITDA 5 9 (47%) 15 17 (12%) (2)
Margin 28.4% 52.3% (23.9%) 28.8% 37.7% (8.9%)
The Mobility Solutions segment, contributing 17% of revenue and 8% of Adjusted EBITDA for the nine-month period (9M 2021:
16% of revenue and 10% of Adjusted EBITDA), provides Mobile Satellite Services (“MSS”) through its approximately 90%-
owned subsidiary, Thuraya, using L-band capacity on two satellites, Thuraya-2 and Thuraya-3.
Despite a slightly weaker third quarter, in which revenue fell by 2% reflecting the phasing of equipment sales, the
business overall maintained double digit revenue growth of 15% versus the prior-year for the nine-month period.
Increases were seen in both Service and Equipment revenue, the former driven by strong growth in Voice (+9%) and
Data services (+15%). Equipment revenue increased by 46% for the nine-month period, driven by a new three-year
distribution agreement secured in Q4 2021.
Adjusted EBITDA for the nine-month period decreased by USD 2 million or 12% versus the same period last year
reflecting higher operating costs as a result of provision releases made in the prior year.
Data Solutions
(USD millions) Q3 2022 Q3 2021 Q3 y/y* 9M 2022 9M 2021 9M y/y ∆
Revenue (external) 6 5 11% 17 17 0% 0
Adjusted EBITDA (1) (2) (58%) (1) (3) (43%) 1
Margin (12.0%) (32.0%) 20.0% (8.4%) (14.9%) 6.5%
The Data Solutions segment offers satellite-based broadband data solutions using Ka-band to end-users including
consumers, enterprises and government customers, as well as high-speed data links for use by telecommunications
companies, internet service providers and other satellite service providers. Note that the financials of this segment do
not include the performance of a 20% minority equity partnership with Hughes, a subsidiary of Echostar, in Brazil.
This segment, contributing 6% of revenue (9M 2021: 6% of revenue), recorded a strong recovery in Q3 2022 with growth
of 11% versus the same period last year. As a result, Data Solutions has now fully absorbed the impact of a capacity
leasing contract to Eutelsat which ended in Q3 2021 and recorded revenues for the nine-month period in line with prior
year. Profitability continues to improve, as the business takes measures to optimize its cost base.
The momentum in the Consumer Broadband business is strong with the subscriber base continuing to ramp up,
increasing 19% year-on-year driven by expansion across Africa region.
Page 5 of 183. Cash flows, liquidity and capital structure
(USD millions) Sep-22 Dec-21 9M YTD ∆
Cash and short-term deposits 631 400 58% 231
Undrawn ECA facility3 111 168 (34%) (57)
Total liquidity 742 568 31% 174
Gross debt 602 549 10% 52
Net debt (30) 149 (120%) (179)
Total equity (excl. minorities) 818 841 (3%) (24)
Gearing Ratio (net debt / capital) (4%) 15% (19%)
Net debt / normalised adj. EBITDA (LTM) (0.1x) 0.6x (0.7x)
9M 2022 9M 2021 9M y/y ∆
Normalised adjusted EBITDA 189 175 8% 14
Operating FCF (excl. capital WIP) 180 168 7% 11
Cash conversion ratio 95.1% 96.1% – (1.0%)
Net cash from operations 194 201 (4%) (8)
Discretionary FCF 182 158 15% 24
High liquidity
The Group’s total available liquidity as at the end of Q3 2022 was USD 742 million, an increase of USD 174 million on
the position at the end of 2021. This was largely due to the receipt of USD 150 million in advance payments from the
Government under the terms of the T4-NGS contract.
Total available liquidity was made up of USD 631 million of cash and short term deposits (including short term deposits
with maturities greater than three months but less than one year) and USD 111 million in undrawn credit facilities,
available to the Group during an availability period ending in November 2024 and for specific uses related to the
procurement of the T4-NGS satellite (see “Cash flows, liquidity and capital structure–Low leverage capital structure”).
The Group’s high liquidity and low leverage metrics place it in a strong position to capitalise on key growth opportunities
(see “Outlook–Al Yah 4 and 5 update”), including inorganic acquisitions that support Yahsat’s strategy (see “Outlook–
Other exciting growth opportunities”).
As of the end of Q3 2022, 20% of the Group’s total debt is classified as current (YE 2021: 11%), based on principal
amounts repayable within one year (see “Cash flows, liquidity and capital structure–Debt maturity profile”).
Strong cash flow generation
The Group enjoys an efficient business model enabling strong cash generation that includes a) robust Adjusted EBITDA
margins, b) low levels of unfunded capital expenditure, c) negligible cash taxes, and d) very low leverage.
This results in high levels of Cash Conversion Ratio of 95.1% for the nine-month period of 2022 (9M 2021: 96.1%) and
a high level of Discretionary Free Cash Flow (“DFCF”) available to meet the Group’s dividend policy commitments.
3 Includes Term Loan 6 (ECA), which can only be drawn during an availability period ending November 2024 for specific uses related to the
procurement of the T4-NGS satellite
Page 6 of 18DFCF for the nine month period reached USD 182 million, a 15% increase versus the prior year period (9M 2021: USD
158 million) and already equivalent to 1.7x total dividends expected for the full year of 2022 of USD 107.1 million (see
“Outlook–Attractive dividend policy” and “Outlook–Guidance for full year 2022”).
Low leverage capital structure
Yahsat’s capital structure is completely funded by equity with a Gearing Ratio of negative 4% as at the end of Q3 2022
(YE 2021: 15%). This reflects the receipt of USD 150 million in advanced payments from the Government under the
terms of the T4-NGS programme, resulting in negative net debt of USD 30 million as at the end of Q3 2022 (YE 2021:
USD 149 million).
The Group’s debt funding includes two term loans:
• USD 400 million 5-year term loan (“Term Loan 5”), fully drawn, and repayable in eight semi-annual instalments
starting from 14 December 2022. The borrowing bears interest at LIBOR plus a margin of 1.30% per annum
and is hedged using an interest rate swap with a fixed swap rate set at 0.7785%. The proceeds of the borrowing
were partially used in June 2021 to pay down USD 251 million in outstanding amounts of an earlier USD 1.2
billion credit facility used to fund the development and construction of Al Yah 1 and Al Yah 2 satellites during
the 2008-2012 period.
The outstanding principal amount at the end of Q3 2022 was unchanged at USD 400 million as the facility
remained fully drawn (YE 2021: USD 400 million).
• USD 300.5 million export credit agency facility (“Term Loan 6”) with a tenor of 8.5 years and bearing interest at
LIBOR plus a margin of 0.60% per annum for drawn amounts. The loan is being used to partly fund the capital
expenditure relating to the T4-NGS satellite programme and is directly guaranteed by the French State (Airbus
is the contractor for the construction and supply of the T4-NGS satellite). The facility can only be drawn down
during a specific period and for specific uses relating to the procurement of the T4-NGS satellite, particularly
upon the achievement of certain construction milestones by the contractor. The interest rate applied to any
drawn amounts is hedged using an interest rate swap with a fixed swap rate set at 1.589%. Interest incurred is
capitalised and expensed over the accounting useful life of the satellite once operational.
The outstanding principal amount at the end of Q3 2022 was USD 190 million, an increase of USD 57 million
over the nine-month period (YE 2021: USD 133 million) reflecting the completion of construction milestones and
other permitted uses of borrowing under the facility.
• Both term loans require the Group to maintain an interest cover ratio4 of not less than 4.00:1 and a net leverage
ratio4 of no more than 3.00:1. They also contain a change of control clause that requires the mandatory
prepayment of outstanding borrowings if the Government of Abu Dhabi ceases to control directly or indirectly
50.1% or more of the share capital of Yahsat.
The Group’s credit facilities provide significant liquidity whilst debt covenants offer significant headroom for further
borrowing as and if required to pursue Yahsat’s growth strategy (see “Outlook”).
4 Calculation of these ratios is defined in the term loan documentation and calculation of the net leverage ratio does not match the Net Debt-to-
Normalised Adjusted EBITDA figure presented in this report.
Page 7 of 18Debt maturity profile
The Group’s financial liabilities repayment schedule as at the end of Q3 2022 based on contractual undiscounted
payments is as follows. It should be noted that the repayment schedule shown for Term Loan 6 is based on the current
forecast of future drawdowns and may change slightly depending on the actual drawdown schedule that materialises.
USD millions
143
120
93
66
60
33 33 33 33 33 33
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Term Loan 5 Term Loan 6 (ECA)
As of the end of Q3 2022, the Group’s total Gross Debt stood at USD 602 million, an increase of USD 52 million or 10%
during the first nine months of the year (YE 2021: USD 549 million).
This increase represents the continued drawdown on Term Loan 6 upon completion of construction milestones and
other permitted borrowing pursuant to the T4-NGS procurement programme and terms of the loan.
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Page 8 of 184. Capital expenditure
(USD millions) Q3 2022 Q3 2021 Q3 y/y* 9M 2022 9M 2021 9M y/y ∆
Total capex 13 28 (55%) 101 106 (5%) (5)
The Group’s total capital expenditure for the first nine months of 2022 was USD 101 million, a 5% decrease versus the
prior-year period.
Over 90% of year-to-date capital expenditure relates to the T4-NGS satellite construction programme and related new
product development. Design and construction costs of the satellite are more than fully funded by both Term Loan 6
(the ECA facility) and a USD 150 million advance payment from the Government received in July 2022.
Further capital expenditure of approximately USD 9 million, reflects projects for the development and upgrade of certain
systems to cater for new services that will be offered on both the Group’s existing MSS satellites Thuraya 2 and Thuraya
3 as well as the new T4-NGS satellite.
See “Outlook–Strong growth prospects–T4-NGS update” for an update on the T4-NGS programme and “Outlook–
Guidance for full year 2022” on guidance for the Group’s capital expenditure for the full year 2022.
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Page 9 of 185. Outlook
Strong growth prospects
Yahsat’s business benefits from predictable contracted future revenues amounting to 5.1x full year 2021 revenues for
the Group as at the end of Q3 2022. Two contracts with the Government (rated Aa2 by Moody’s and AA- by Fitch) make
up over 90% of contracted future revenues.
Serving the Government’s satellite communication needs is a core business and central to Yahsat’s growth strategy,
building on an increasing trend for sovereignty and self-reliance over satellite assets. In that respect, the T4-NGS
satellite currently under construction and the expansion of the Company’s fleet with two potential new satellites (Al Yah
4 and Al Yah 5), present unique growth prospects for the Group and further secure Yahsat’s long-term financial outlook.
Roll out of contracted future revenue backlog over next 5 years and beyond5
(all figures in USD millions)
T4-NGS update
In 2021, the Group entered a 15-year contract with the Government worth USD 708 million6 for capacity and associated
services on the T4-NGS satellite, the Group’s sixth and forthcoming fleet addition. T4-NGS will be an MSS satellite
placed in Geostationary Earth Orbit (“GEO”) offering advanced capabilities such as higher capacity and terminal data
rates above 1 Mbps (versus approximately 0.4 Mbps available in the current system). Many of the new products being
developed to take advantage of the satellite’s new advanced capabilities will be offered to the Government as well as
other governmental and commercial customers, driving further growth across several Group segments, including
Infrastructure, Managed Solutions and Mobility Solutions.
5 Future contracted revenues in 2027 and beyond are USD 656 million
6 See earlier footnote 2 on calculation of future contracted revenue related to the T4-NGS contract
Page 10 of 18T4-NGS was originally expected to launch in the second half of 2023 and start services in the second half of 2024. The
Group now expects there to be a delay of up to six months in the delivery of the satellite by the contractor under the T4-
NGS programme, Airbus Defense and Space SAS (“Airbus”). As a result, the launch of the satellite is now expected to
take place in the first half of 2024 and to start services in the first half of 2025. Whilst the Group and Airbus continue to
work closely together to improve the delivery schedule, Yahsat does not currently anticipate any material financial impact
due to this delay.
During the period, the Group also signed a commitment letter with the Government, whereby the Group was awarded
USD 30 million as a grant in relation to the procurement of T4-NGS programme, in the form of a reduction in the purchase
price of the T4-NGS satellite (refer to note 5 of the Group’s financial statements for the period ended 30 September
2022).
Al Yah 4 and 5 update
The Group is currently in the discussion and planning stages with the Government regarding the potential launch of two
new Fixed Satellite Services (“FSS”) satellites, Al Yah 4 and Al Yah 5, in the medium term. The new satellites would
augment and ultimately replace the capacity currently provided to the Government under the CSA due to expire
November 2026, which utilises the existing FSS satellites, Al Yah 1 and Al Yah 2. The new satellites would benefit from
new coverage, capabilities and higher capacities to meet the next generation demands of the Government. Al Yah 1
and Al Yah 2 are estimated to reach end of life7 in 2029 and 2030, respectively, and the current CSA may be extended
to run in parallel with the procurement and initial deployment phases of the new satellites.
A request for proposal (“RFP”) process is currently underway and the Group is evaluating manufacturer responses prior
to selecting a preferred satellite manufacturer and presenting a complete proposal to the Government. Should an
agreement with the Government be reached, the Group expects to follow a similar approach as for Al Yah 1 and Al Yah
2, whereby the Government would take capacity on a long term, committed basis, further increasing the Group’s
contracted future revenue backlog.
Other exciting growth opportunities
The Group sees promising growth opportunities in the space industry that play to its strengths, including its robust
balance sheet, knowledge, infrastructure, footprint and spectrum rights:
• Value added SatCom solutions: The Group is committed to moving further down the value chain and offering
differentiated satellite solutions and services to strategic industries (e.g., maritime, oil and gas, telecom).
• Direct to device: Direct satellite-to-device connectivity offers the opportunity to reach billions of mainstream
devices and is attracting significant interest from phone manufacturers and telecom operators, who wish to offer
more value-added services to their customers, as well as from satellite operators, given the potential to
significantly increase their addressable market. Yahsat is uniquely positioned to play a key role with its valuable
L-band spectrum rights covering approximately two-thirds of the globe.
7 Estimated based on the latest health reports and estimated remaining fuel life, assuming typical degradation in coming years and no significant
anomalies occur.
Page 11 of 18• Internet of things (“IoT”): A global shift to connecting “things” is boosting the demand for IoT and machine-to-
machine (“M2M”) applications using satellite systems that can provide ubiquitous coverage and enable key
plays such as mass asset tracking, monitoring and agriculture uses. The Group’s recent investment in eSAT
Global and procurement of the T4-NGS satellite, currently under construction, will enable numerous new
applications in this space.
• Mergers and acquisitions: The Group is continuously exploring inorganic growth opportunities to support its
strategic ambitions.
• Earth observation (“EO”) and remote sensing: In July 2022, the UAE Space Agency announced a new US$
800 million national investment and development fund for the space sector. Amongst the fund’s planned projects
is the development and launch of a constellation of advanced earth observation satellites that deploy various
radar technologies to provide high resolution ‘imaging’ capabilities with a wide range of scientific, civil and
commercial applications. The Group is well positioned to play an important role in this national initiative by
further developing its EO and remote sensing capabilities.
• UAE partnerships: The UAE’s National Space Strategy 2030 is a testament to the UAE’s long track record of,
and continued future ambitions for, a leading role in the global space industry. The UAE is currently shaping a
competitive, diversified and flexible knowledge-based economy that is powered by skilled Emiratis and effective
partnerships between public, private and technology entities. Innovation, research, science and technology are
key elements in this highly dynamic and futuristic economy. Yahsat is playing a key role in developing the UAE
space sector and plans to continue being a cornerstone of this development, including upstream expansion
within the satellite industry value chain.
Given the dynamics of the industry and the opportunities arising, the Group’s management and Board regularly review
Yahsat’s business strategy to capitalise on key opportunities and maximise value for its stakeholders, including
shareholders and the UAE.
Guidance for full year 2022
(USD millions) FY 2022 Guidance
Financial KPI 8 Nov '22 (updated) 9 Aug '22 (previous) 1 Mar '22 (previous)
Gross revenue 420-440 (unchanged) 420-440 (narrowed) 415-440
Adjusted EBITDA Stable (unchanged) Stable (unchanged) Stable
Discretionary Free Cash Flow ('DFCF') 210-240 (unchanged) 210-240 (unchanged) 210-240
Capex and investments8 150-170 (reduced) 210-230 (unchanged) 210-230
Guidance has been reduced for Capex and Investments, partly due to the delay in the T4-NGS programme but also
due to reductions in the overall programme cost (see “Outlook–T4-NGS update”) and capital returned during the period
from one of the Group’s associates (Yahlive). Approximately 90% of 2022 projected Capex and Investments is related
to the T4-NGS programme, for which funding arrangements are already in place.
DFCF for the full year period is expected to reach at least USD 210 million, equivalent to 2.0x total dividends expected
for the full year of 2022 of USD 107.1 million.
8 ‘Investments’ refer to investments in associates, net of any dividends received and capital returned.
Page 12 of 18Attractive dividend policy
During the Annual General Assembly on 11 April 2022, the Company’s shareholders approved a cash dividend
equivalent to USD 52.5 million (AED 7.90 fils/share) for the second half of the financial year 2021 (paid in May 2022).
Together with a cash dividend of an equal amount previously paid to Mamoura Diversified Global Holding PJSC (a
subsidiary of Mubadala Investment Company PJSC and sole selling shareholder during the Company’s initial public
offering in July 2021), total dividends for the financial year 2021 reached USD 105.0 million (AED 15.80 fils/share). At
the meeting, the Board reaffirmed its prior commitment to increase dividends by at least 2% per annum.
On 20 September 2022, the Board declared the Company’s first interim cash dividend for the first half of 2022, in an
amount equivalent to USD 53.5 million (AED 8.06 fils/share, paid in October 2022). The Company expects to pay a total
dividend of USD 107.1 million (AED 16.12 fils/share) for the financial year 2022.
Based on the Company’s closing share price as at the end of Q3 2022 of AED 2.71, this implies an annualised
dividend yield of 5.95% - amongst the highest offered by corporates listed in the UAE.
See “Cautionary statement regarding forward-looking statements” for full disclaimer.
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Page 13 of 186. Earnings webcast
The Group will host a conference call in English for investors and analysts on Tuesday, 8 November 2022 at
16:00 UAE / 15:00 KSA / 12:00 UK / 07:00 NY time.
The Group’s results will be presented by Ali Al Hashemi, Group CEO and Andrew Cole, CFO.
The webcast will be conducted via Zoom Webinars – please register ahead of time using this link:
https://zoom.us/webinar/register/WN_Kpj9JYD_QjaW8bRevK45hQ
After registering, you will receive a confirmation email containing information about joining the webinar.
A replay will be made available following the event, accessible from the Investor Relations section of Yahsat’s corporate
website.
7. Next reporting date
The Group expects to announce fourth quarter and full year 2022 results on or around 28 February 2023.
8. Contacts
Investor Relations
Tel.: +971 2 507 6318
Email: ir@yahsat.ae
Shadi Salman, CFA Yugesh Suneja
VP, Investor Relations AVP, Investor Relations
Email: csalman@yahsat.ae ysuneja@yahsat.ae
8 November 2022
Al Yah Satellite Communications Company PJSC
Page 14 of 18About Yahsat
Al Yah Satellite Communications Company PJSC (Yahsat) is a public company listed on the Abu Dhabi Securities
Exchange (ADX) and a subsidiary of Mubadala Investment Company PJSC, offering multi-mission satellite solutions in
more than 150 countries across Europe, the Middle East, Africa, South America, Asia and Australasia.
Yahsat’s fleet of 5 satellites reaches more than 80% of the world’s population, enabling critical communications including
broadband, broadcasting, backhauling and mobility solutions. Based out of Abu Dhabi in the UAE, Yahsat provides C,
Ku, Ka and L-band satellite communications solutions for land, maritime and aero platforms to consumers, governments
and enterprises. Its businesses consist of Yahsat Government Solutions, Thuraya, YahClick (powered by Hughes) and
YahLink. Yahsat also participates in Hughes do Brasil, an equity partnership with Hughes, and Yahlive, an equity
partnership with SES. In 2020, Yahsat commenced construction of Thuraya 4-NGS, the next generation
telecommunications system for Thuraya, which is due to be in service during 2025.
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Page 15 of 189. Alternative performance measures and terms used
Yahsat regularly uses alternative performance measures which are relevant to enhance the understanding of the
financial performance and financial position of the Group. These measures may not be comparable to similar measures
used by other companies; they are neither measurements under IFRS nor any other body of generally accepted
accounting principles and thus should not be considered as substitutes for the information contained in the Group’s
financial statements.
Alternative performance measure
Definition
or term used
Earnings from continuing operations before interest, tax, depreciation,
Adjusted EBITDA amortisation, impairment, fair value adjustments on investment property and
share of results of equity-accounted investments
Adjusted EBITDA Margin Adjusted EBITDA divided by Revenue
Cash Conversion Ratio Operating Free Cash Flow divided by Adjusted EBITDA
Net cashflow from operations less (a) additions to intangible assets, (b)
Discretionary Free Cash Flow development and maintenance capital expenditure, excluding additions to
(‘DFCF’) satellite related capital work-in-progress, (c) net investments in associates,
and (d) net finance costs.
Net Debt divided by equity capital attributable to the Group’s shareholders
plus Net Debt (see definition below). Capital includes share capital, additional
Gearing Ratio
paid-in capital, reserves and retained earnings, and excludes non-controlling
interests.
Unless otherwise specified, Government shall mean the Federal Government
Government of the UAE, the Government of Abu Dhabi and any instrumentality or body of
either of them, including the General Headquarters of the UAE Armed Forces
Gross Debt Interest bearing borrowings excluding unamortised transaction costs
Net Debt Gross Debt minus cash and short-term deposits
Net Income Profit attributable to the shareholders
Net Income margin Net Income (profit attributable to the shareholders) divided by Revenue
Adjusted EBITDA adjusted for material, one-off items recorded during the
current and comparative periods that would otherwise distort the underlying,
Normalised Adjusted EBITDA like-for-like performance of the business. There were no one-off items for 9M
2022 whilst 9M 2021 Normalised Adjusted EBITDA of USD 175 million
adjusts for IPO related costs (USD 4 million).
Profit attributable to the Group’s shareholders, adjusted for material, one-off
items recorded during the current and comparative periods that would
Normalised Net Income otherwise distort the underlying, like-for-like performance of the business. 9M
2022 Normalised Net Income of USD 76 million adjusts for one-off impairment
expenses relating to the Group’s equity-accounted joint-venture in Brazil
Page 16 of 18(USD 41 million). 9M 2021 Normalised Net Income of USD 54 million has
been adjusted for one-off costs relating to the prior year debt refinancing
(USD 7 million) and IPO related costs (USD 4 million).
Normalized Net Income margin Normalized Net Income divided by Revenue
Adjusted EBITDA minus (a) additions to intangible assets and (b)
Operating Free Cash Flow development and maintenance capital expenditure, excluding additions to
satellite related capital work-in-progress
Financial numbers presented in millions are rounded to whole numbers while those presented in billions are rounded to
one decimal place. All percentages are rounded to one decimal place. Financial numbers and percentages have been
derived from underlying numbers. Due to rounding, numbers presented may not add up precisely to the totals provided
and percentages may not precisely reflect the absolute figures.
[this section deliberately left blank]
Page 17 of 1810. Cautionary statement regarding forward-looking statements
This announcement includes forward-looking statements, which are based on current expectations and projections
about future events. These statements may include, without limitation, words such as "expect", "will", "looking ahead"
and any other words and terms of similar meaning. These forward-looking statements are subject to risks, uncertainties
and assumptions about the Company and its subsidiaries and its investments, and speak only as at the date of this
announcement. Forward-looking statements are based on assumptions of future events and information currently
available to the Company which may not prove to be accurate and the Company does not accept any responsibility for
the accuracy or fairness thereof and expressly disclaims any obligation to update any such forward looking statement.
No representation or warranty is made that any forward-looking statement will come to pass. You are therefore cautioned
not to place any undue reliance on forward-looking statements. For further information regarding forward-looking
statements, and the factors that may cause actual results and developments to differ materially from those expressed
or implied by these forward-looking statements please refer to the Company’s Annual Report for 2021, which is available
on its corporate website at https://www.yahsat.com/Reports/2021/index.html
The amount and payment of dividends by the Group is subject to consideration by the Board of Directors of the cash
management requirements of the Group for operating expenses, interest expense, and anticipated capital expenditures,
and market conditions, the then current operating environment in its markets, and the Board of Directors’ outlook for the
business of the Company. In addition, any level or payment of dividends will depend on, among other things, future
profits and the business plan of the Company, as determined at the discretion of the Board of Directors.
Neither this announcement nor anything contained herein constitutes a financial promotion, or an invitation or
inducement to acquire or sell securities in any jurisdiction.
[this section deliberately left blank]
Page 18 of 18 | neutral |
1
uibyll aj1.041..tli!
Emirates NBD
27 60 years together i_o_o t nt 60 27 July 2023
Emirates NBD’s H1 2023 profit surge 130% to a record AED 12.3 billion
Quarterly profit of AED 6.2 billion is highest ever
Emirates NBD’s profit surge 130% to a record AED 12.3 billion in the first half of 2023 on strong Current and
Savings Accounts growth coupled with a healthy increase in lending. Q2-23 is also a record quarter with
income growing to AED 10.8 billion and profit rising to AED 6.2 billion, reflecting the buoyant regional economy.
The exceptional profitability reflects higher margins, growing non-funded income and a lower cost of risk on
significant recoveries. Emirates NBD’s market-leading deposit franchise added AED 53 billion of deposits
including AED 37 billion of low-cost Current and Savings Accounts. Success in record Retail Lending growth
and Corporate Lending closing key deals across the region drove 5% loan growth, with guidance revised
positively upwards. All business units delivered higher income and profit. The Group’s investment in
technology and AI enabled the agile launch of new digital products and services which is driving business
growth. The rock-solid balance sheet makes Emirates NBD a regional powerhouse leading to Emirates NBD
being recognised as ‘Best Bank in the Middle East’ and ‘Best Bank in the UAE’ at the Euromoney Excellence
Awards 2023.
Key Highlights – First Half 2023
130% profit growth on higher margins, improved deposit & loan mix and substantial recoveries
Total income up 50% to AED 21.3 billion on excellent deposit mix with higher interest rates feeding
through to margins and strong growth across all business segments and products
Deposit mix is a key strength. Deposits grew AED 53 billion in H1-23 including AED 37 billion of
low-cost Current and Savings Accounts
Loans up an impressive 5% in H1-23 with record Retail lending and Corporate closing key deals
across the region leading to guidance revised positively upwards
Net interest margin rose significantly by 110 basis points y-o-y to 3.96%
Impairment allowances substantially down 50% y-o-y as credit quality improved, reflecting the
Group’s prudent approach to credit provisions
Balance Sheet surpasses AED 800 billion milestone for the first time ever
Earnings per share up significantly by 138% to 190 fils, underlying up 92% to 211 fils
Awarded ‘Best Bank in the Middle East’ and ‘Best Bank in the UAE’ at the Euromoney Excellence
Awards 2023
Page 1 of 7 Emirates NBD’s investment in technology, AI and Advanced Analytics is driving new customer
focused services & products, and propelling future business growth
Real-time FX rates offered to customers, reinforcing our position as the UAE’s frontrunner in FX
‘ENBD X’ enhanced mobile banking app rolling out, delivering a new standard in customer service
Liv refreshed, offering Gen Now an exciting all-purpose digital-banking companion
One-third market share of UAE Credit Card spend
‘Emirates NBD Pay’, our Merchant Acquiring service, collected over AED 1 billion in first 100 days
First local currency issuer of Dirham bonds and sukuks following the Ministry of Finance’s
development of local yield curve
Trade API integration with DEWA completed, becoming the only UAE bank to digitize this process,
offering customers simplified end-to-end Straight Through Processing
Global Custody Services launched on DFM and ADX, providing regional and overseas clients with
secure and efficient safekeeping of assets across multiple geographies
Instant trading on ADX. Emirates NBD Securities provides digital onboarding and instant trading
access to ADX’s listed companies
Project Finance facility provided for one of UAE’s largest corporates
Looking to the future as the UAE hosts COP28, Emirates NBD is delivering ESG solutions to
customers as their net-zero ambitions and sustainability goals drive economic activity
Carbon Trading introduced as Emirates NBD becomes first UAE bank to empower customers to
manage carbon emissions offsetting, helping align with UAE’s Net Zero action plan
Innovative green financing solutions provided to our regional and global clients
ESG 75% of cards issued now eco-friendly bio-cards, reducing plastic consumption
ESG commitment reinforced with four further branches in the UAE and KSA achieving LEED
Platinum and LEED Gold certifications
UAE Gender Balance Pledge signed further solidifying Group’s commitment to gender equality and
diversity
Page 2 of 7Hesham Abdulla Al Qassim, Vice Chairman and Managing Director said:
“Emirates NBD’s profit hit a record high of AED 12.3 billion for the first half of 2023
reflecting the Group’s growing regional presence and visionary investment in technology
& AI which is driving new product delivery and propelling growth.
Emirates NBD proudly celebrates its 60th anniversary, having grown to be one of the
region’s leading banks, serving over 20 million customers across 13 countries. We are
committed to playing a key role in driving further economic growth and development across the region.
Emirates NBD looks forward to welcoming COP28 to the UAE and we are pleased to offer exciting ESG
solutions to our customers to empower them to meet their net-zero ambitions and sustainability goals.
I am delighted that Emirates NBD was recognized as the ‘Best Bank in the Middle East’ and ‘Best Bank in
the UAE’ at the Euromoney Excellence Awards 2023.”
Shayne Nelson, Group Chief Executive Officer said:
“Emirates NBD delivered record income for the first half of 2023, rising by 50% to
AED 21.3 billion, driven by an excellent deposit mix and strong lending growth.
Our market-leading deposit franchise added AED 53 billion of deposits including
AED 37 billion of low-cost Current and Savings Accounts.
Record Retail lending and success in closing key Corporate lending deals across the region drove loan
growth 5% higher, underlining the strength of our regional presence.
The Group’s earlier investment in technology provides a bedrock to launch many exciting new products &
services and harness the power of generative AI to further transform Emirates NBD’s operations and enhance
productivity.”
Patrick Sullivan, Group Chief Financial Officer said:
“All business units generated a substantial increase in income, helping Emirates NBD
deliver its strongest ever half-year for both income and profit.
The Group’s success in growing an inexpensive and diversified funding base has
positioned the Bank to continue benefiting from higher interest rates.
The Group is forward looking as it invests higher income to drive future efficiencies and new revenue streams.
Impairment allowances are substantially lower, with a 50% y-o-y improvement reflecting the Group’s prudent
approach to credit provisions
Strong lending growth of 5% in the first half of 2023 enables the Group to revise loan growth guidance
positively upwards.
The UAE’s economy continues to perform strongly, and the Group’s solid balance sheet is supporting its
customers and help them grow both locally and internationally.”
Page 3 of 7Financial Review
Income Statement
H1 23 H1 22 %∆ YoY Q2 23 Q1 23 ∆ QoQ
All figures are in AED billion
Net interest income 14.4 9.4 53% 7.2 7.2 1%
Non-funded income 6.9 4.8 44% 3.6 3.3 10%
Total income 21.3 14.2 50% 10.8 10.5 3%
Operating expenses (5.5) (4.1) 34% (2.8) (2.6) 7%
Operating profit before impairment 15.8 10.1 56% 8.0 7.8 2%
Impairment allowances (0.9) (1.9) (50%) (0.5) (0.5) 1%
Profit before tax & others 14.9 8.3 80% 7.5 7.3 2%
Hyperinflation adjustment (1.4) (1.9) (28%) (0.5) (0.8) (37%)
Tax (1.3) (1.1) 19% (0.8) (0.5) 56%
Profit 12.3 5.3 130% 6.2 6.0 4%
Key Metrics
Cost to income ratio 25.6% 28.7% (3.1%) 26.0% 25.3% 0.7%
Net interest margin 3.96% 2.86% 110 bps 3.87% 4.05% (18) bps
Cost of Risk (bps) 41 79 (38) bps 40 41 (1) bps
EPS (AED) 1.90 0.80 110 fils 0.97 0.93 4
Return on Tangible Equity 29.7% 14.6% 15.1% 29.8% 30% (0.2)%
Balance Sheet As of As of
%∆ YoY
As of
%∆ YTD ∆ QoQ
All figures are in AED billion 30-Jun-23 30-Jun-22 31-Dec-22
Total Assets 811 711 14% 742 9% 4%
Gross Loans 479 425 13% 456 5% 2%
Deposits 556 468 19% 503 11% 3%
Key Metrics
NPL Ratio 5.6% 6.1% (50) bps 6.0% (40) bps 0 bps
Impaired Loan Coverage Ratio 147% 133% 14% 145% 2% (5%)
Liquidity Coverage Ratio 217% 155% 62% 182% 34% 30%
Capital Adequacy Ratio 19.5% 18.0% 148 bps 18.3% 118 bps 78 bps
Tier 1 Ratio 18.4% 16.9% 148 bps 17.2% 118 bps 78 bps
Common Equity Tier 1 Ratio 16.6% 15.0% 160 bps 15.4% 120 bps 80 bps
Rounding differences may appear throughout the document
Page 4 of 7Operating Performance
Total income for H1-23 is up 50% y-o-y and up 3% q-o-q to AED 21.3 billion. Net interest income is up 53%
y-o-y on an excellent deposit mix with higher interest rates feeding through to margins and strong growth
across all business segments and products. Non-funded income is up 44% y-o-y from increased local and
international card transactions, coupled with growth in FX & Derivative income.
0.9
H1 2023
Expenses remain well controlled with the H1-23 cost to income ratio within 1.9
5.5 Net profit
guidance at 25.6% reflecting stronger income enabling accelerated investment
5.3
H1 2022 Costs
in AI and international growth to drive future business growth.
12.3
4.1 Provisions
Impairment allowances in H1-23 are substantially lower, down 50% y-o-y,
reflecting strong recoveries and the healthy operating environment.
Quarterly profit rises to AED 6.2 billion on the back of higher income, the highest ever quarterly profit delivered
by a UAE bank.
Balance Sheet Trends
Lending increased during H1-23 by AED 23 billion with the
Dec-22 Jun-23
conventional and Islamic retail franchise having its strongest ever
556
half-year for acquisition of loans
503
Deposits grew by AED 53 billion in the first half of 2023, including a 479
456
AED 37 billion increase in Current and Savings Account balances
helping maintain a stable, efficient funding base.
Liquidity remains strong with the Liquidity Coverage Ratio at 217%
Loans Deposits
and the Advances to Deposits Ratio at 79%.
During the half year, the Non-Performing Loan ratio improved to
5.6% on significant writeback and recoveries whilst the Coverage
Dec-22 Jun-23
ratio strengthened to 147%, demonstrating the Group’s continued 19.5%
successful approach to loan management and its prudent approach 18.3%
towards credit risk management. 16.6%
15.4%
As at 30 June 2023, the Group’s Common Equity Tier 1 ratio is
16.6%, Tier 1 ratio is 18.4% and Capital Adequacy ratio is 19.5%
CET-1 CAR
Page 5 of 7Business Performance
Retail Banking and Wealth Management (RBWM) had an excellent first half with highest ever revenue,
strongest ever acquisition of loans and a substantial growth in balance sheet
- Robust business momentum continues with loan origination up 23% y-o-y and Credit Card acquisitions
up 31% y-o-y
- One-third market share of UAE Credit Card spend as card spends grew 30% y-o-y
- Lending increased by a record AED 12 billion and Deposits grew by AED 24 billion in first half of 2023
- Income grew 40% y-o-y as RBWM delivered its highest ever half yearly revenue and non-funded
income
- ‘ENBD X’ enhanced mobile banking app rolling out, delivering a new standard in customer service
- Liv refreshed, offering Gen Now an exciting all-purpose digital-banking companion
Corporate and Institutional Banking capitalised its strategic partnership with major Government entities
and Corporates by enhancing digitized service platforms
- Profitability jumped 116% on increased customer hedging, higher Trade Finance, CASA and
Investment Banking income and strong recoveries
- Strong new lending and CASA growth
- Emirates NBD Securities provides digital onboarding and instant trading access to ADX’s listed
companies
- BusinessONLINE services expanded and launched in India and KSA
Global Markets and Treasury delivered an outstanding performance, contributing AED 2 billion in
revenue during the first half of 2023.
- Income rose fivefold driven by favourable balance sheet positioning coupled with a significant increase
in banking book investment income
- Emirates NBD took the lead in offering carbon futures trading ahead of COP28, empowering
customers to offset their carbon emissions
- The product offering was further enhanced with real-time FX rates now available to customers
- The trading desk delivered another solid performance despite volatile market conditions
- Sales revenue increased by 54% with income from structured products growing by 63%
DenizBank profit up 234% to AED 1.9 billion helped by higher income and strong recoveries
Page 6 of 7Outlook
GCC economies have been resilient against a weaker global backdrop and higher interest rates. PMI surveys
indicate robust activity in non-oil sectors in the first half of 2023 across the region. Emirates NBD Research
revised their forecast for UAE growth in 2023 to 2.9% from 3.2% on the expectation of a contraction in
hydrocarbon GDP although we revised up our forecast for UAE non-oil GDP growth to 5.0% this year, from
3.5% previously. The UAE’s national energy strategy expects up to AED 200 billion of investment as it triples
the contribution of renewable energy by 2030. Other economic sectors such as tourism are flourishing with
Dubai tourist numbers recovering close to pre-pandemic levels. In the wider MENAT region, Egypt made
successful asset sales reflecting their commitment to revamp the economy and Türkiye increased interest rates
to help address inflation.
-ENDS-
Awards:
Emirates NBD won Best Bank in the Middle East and Best Bank in the UAE at the Euromoney
Excellence Awards 2023
Emirates NBD won Middle East's Best Private Bank for Digital and Best Domestic Private Bank
in the UAE by Euromoney Global Private Banking Awards 2023
Emirates NBD won Best Private Bank Digital Solutions for Clients in the Middle East and UAE
by Global Finance World’s Best Private Banks Awards 2023
Emirates NBD KSA won Best Foreign Bank in KSA by International Finance Awards, Most
Innovative Retail Bank – Saudi Arabia 2022 by Global Economics Awards and Best Green Building
Initiative – Banking KSA 2022 by the International Finance Awards
Emirates NBD Capital won Best Investment Bank in the Middle East, Best Local Investment Bank
in the UAE, Best Debt House in the UAE, Best Loan House in the UAE and Best Foreign Bank
in the KSA by EMEA Finance - Middle East Banking Awards 2022
Emirates NBD Capital won Best Islamic Investment Bank (Global), IFN Syndicated Deal of the
Year, IFN Turkiye Deal of the Year and Best Investment Bank in the UAE by the Islamic Finance
News Awards 2022
Emirates NBD Capital secured 16 prestigious awards at the Bonds, Loans and Sukuk Awards 2023
Emirates NBD was named the UAE’s most valuable banking brand and MENA’s third most
valuable banking brand, with a value of USD 3.89 billion, in The Banker’s 2023 brand valuation
Emirates NBD won Grand Prix in Glass: The Award for Change for Emirati Women’s Day Campaign
at the Dubai Lynx Awards 2023
Emirates NBD has a leading retail banking franchise, with 854 branches and 4,173 ATMs / SDMs in the UAE and overseas. It is a major
player in the UAE corporate and retail banking arena, and has strong Islamic banking, investment banking, private banking, asset
management, global markets & treasury and brokerage operations. The bank has operations in the UAE, Egypt, India, Türkiye, the
Kingdom of Saudi Arabia, Singapore, the United Kingdom, Austria, Germany, Bahrain, Russia and representative offices in China and
Indonesia. For more information, please visit: www.emiratesnbd.com
For more information:
Ibrahim Sowaidan Patrick Clerkin
Head Group Corporate Affairs Head of Group Funding & Investor Relations
Emirates NBD Emirates NBD
Telephone: +971 4 609 4113 / +971 50 6538937 Telephone: +971 4 609 3007
E-mail: ibrahims@emiratesnbd.com E-mail: IR@EmiratesNBD.com / PatrickE@EmiratesNBD.com
This document has been prepared by Emirates NBD Bank PJSC (ENBD) for information purposes only. The information, statements and opinions contained in this document do not constitute a public offer under any
applicable legislation or an offer to sell or solicitation of an offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. This document
is not intended for distribution in any jurisdiction in which such distribution would be contrary to local law or reputation. The material contained in this press release is intended to be general background information on
ENBD and its activities and does not purport to be complete. It may include information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the
accuracy, completeness or reliability of the information. It is not intended that this document be relied upon as advice to investors or potential investors, who should consider seeking independent professional advice
depending on their specific investment objectives, financial situation or particular needs. In the event that the press release contains any pro forma financial information on ENBD, that information has been prepared for
illustrative purposes only, may address a hypothetical situation and may not give a true picture of the financial performance of the ENBD group. Furthermore, any pro forma financial information may only be meaningful
where read in conjunction with the historical audited consolidated financial statements of ENBD. Unless expressly disclosed to the contrary, any pro forma financial information has been compiled based on the accounting
policies of the group as disclosed in its most recent consolidated financial statements. This document may contain certain forward-looking statements with respect to certain of ENBD’s plans and its current goals and
expectations relating to future financial conditions, performance and results. These statements relate to ENBD’s current view with respect to future events and are subject to change, certain risks, uncertainties and
assumptions which are, in many instances, beyond ENBD’s control and have been made based upon management’s expectations and beliefs concerning future developments and their potential effect upon ENBD. By
their nature, these forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond ENBD’s control, including, among others, the UAE domestic and global
economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory and Governmental authorities, the impact of competition, the timing
impact and other uncertainties of future acquisition or combinations within relevant industries. As a result, ENBD’s actual future condition, performance and results may differ materially from the plans, goals and expectations
set out in ENBD’s forward-looking statements and persons reading this document should not place reliance on forward-looking statements. Such forward-looking statements are made only as at the date on which such
statements are made and ENBD does not undertake to update forward-looking statements contained in this document or any other forward-looking statement it may make.
Page 7 of 7 | neutral |
For immediate release
Emirates Islamic reports record net profit of AED 601 million for Q1 2023
Dubai, 27 April 2023
Emirates Islamic delivered a record net profit of AED 601 million for the first three months of 2023 as total
income grew 74%.
Total Income Expenses Provisions Net Profit
AED 1.133 billion AED 377 million AED 155 million AED 601 million
34% y-o-y 424% y-o-y 76% y-o-y
NFIM Cost: Income Ratio NPF Ratio CET-1 Ratio
4.72% 33.3% 6.8% 18.5%
Key Highlights – Q1 2023
Strong operating performance on higher funded income and non-funded income
Total income up 74% y-o-y driven by rising core revenues as a result of improved financing and
deposit mix with higher profit rates coupled with higher non funded income
Operating expenses increased by 34% y-o-y as the Bank invests for future growth. Cost to income
ratio at 33.3%, lower by 10% y-o-y
Impairment Allowances increased by 424% y-o-y due to financing growth and increased overlays
resulting in higher coverage ratio
Operating profit showed an impressive growth of 103% y-o-y
Net profit increased to a record AED 601 million, up by 76% y-o-y
Net profit margin improved to 4.72%
Strong capital and liquidity combined with a healthy deposit mix enabled the Bank to continue
supporting customers
Total assets at AED 77.9 billion, increased 4% from end 2022
Customer financing at AED 49.6 billion, increased 3% from end 2022
Customer deposits at AED 57.3 billion, increased 2% from end 2022 with Current Account and
Savings Account balances at 75% of total deposits
Credit Quality: Non-performing financing ratio improved to 6.8% with strong coverage ratio at 133%
Capital: Tier 1 ratio of 18.5% and 19.7% Capital adequacy ratio reflects Bank’s strong capital position
Headline Financing to Deposit ratio at 87%, reflects continued healthy liquidity in the UAE
Page 1 of 3Hesham Abdulla Al Qassim, Chairman, Emirates Islamic said:
We are very pleased to announce a strong performance by Emirates Islamic in the
first quarter of 2023. The bank’s net profit grew by 76% year-on-year to a record AED
601 million, driven by a 74% growth in total income.
As the UAE steadily delivers higher economic growth, customer confidence is at a
high. This was reflected in increased appetite for retail products, growth in card spending and higher
customer deposits.
The Bank announced the successful pricing of its inaugural AED 1 billion dirham-denominated sukuk,
the first such sukuk by a UAE bank. The Sukuk sale will expand financing options for UAE corporations
with Shariah-compliant needs while enhancing the development of the Ministry of Finance’s dirham
yield curve. The three-year issue attracted a strong orderbook and was 2.5 times oversubscribed
which allowed the Bank to tighten the profit rate to 5.05%, at a spread of 67 basis points over UAE
Government Treasuries.
At Emirates Islamic, we believe in Emirati talent and have exceeded the Emiratization target set by
the Central Bank of the UAE. We are proud to have one of the highest Emiratization rates in the UAE
banking sector, at 38% of total employees at the Bank.
Emirates Islamic supported those in need by contributing AED 108 million in 2022 through the
Emirates Islamic Charity Fund. The bank will continue to support a number of charitable institutions
and deserving causes in 2023, especially during the holy month of Ramadan.
Salah Mohammed Amin, Chief Executive Officer, Emirates Islamic said:
Emirates Islamic’s balance sheet remains strong with total assets growing by 4% in
the first quarter of 2023 to reach AED 77.9 billion, demonstrating the strength of our
operating capabilities and prudent risk management.
Our strong results are a reflection of our focus on providing innovative financial solutions to our
customers while enhancing the overall customer experience.
As Emirates Islamic continues to drive innovation in the Islamic banking sector, the Bank launched
a global FinTech accelerator campaign in collaboration with the world’s leading innovation
platform, Plug and Play Abu Dhabi. The campaign is a call to action for leading Islamic FinTechs
and financial startups with propositions that can enhance customer journeys across SME
financing, trade finance and financial wellbeing.
Further reinforcing our commitment to SMEs, the Bank launched its “Trade More, Earn More”
campaign to incentivise small and medium-sized businesses to use our trade solutions suite for
optimal import and export business transactions.
As the bank of choice for UAE nationals, the Bank launched the “Emarati Week” initiative, giving
existing Emarati customers 7-day-access to exclusive rates, special offers, and the chance to win
grand prizes.
Page 2 of 3 We are pleased to be recognised for our market-leading proposition, customer-centricity and
innovative banking propositions. The Bank won three prestigious awards at the Islamic Finance
News Awards 2022 and was named ‘Best Retail Bank in the UAE’ for excellence in consumer-
focused banking propositions, ‘Most Innovative Bank in the UAE’ in recognition of its commitment
to digital, customer-centric banking experiences and ‘Best Digital Offering in the UAE’ for its
transformative digital banking proposition and integration of industry-leading technology. In
addition, the bank was also named ‘Most Innovative Shariah-Compliant Bank’ by International
Finance Magazine.
-ENDS-
About Emirates Islamic:
Emirates Islamic (DFM: EIB), part of Emirates NBD Group, is one of the fastest growing banks in the UAE. Established
in 2004 as Emirates Islamic Bank, the bank has established itself as a major player in the highly competitive financial
services sector in the UAE.
Emirates Islamic offers a comprehensive range of Shari’a-compliant products and services across the Personal, Business
and Corporate banking spectrum with a network of 42 branches and 211 ATMs/CDMs across the UAE. In the fast-
growing area of online and mobile banking, the bank is an innovator, being the first Islamic bank in the UAE to launch a
mobile banking app and offer Apple Pay, as well as being the first Islamic bank in the world to launch Chat Banking
services for customers via WhatsApp.
Emirates Islamic has consistently received local and international awards, in recognition of its strong record of
performance and innovation in banking. Emirates Islamic won recognition in 2022 for its financial performance,
innovative products and customer experience. The bank won three awards at the World Finance Islamic Finance Awards
- namely “Best Islamic Bank in UAE”; “Best Islamic Bank in Customer Experience, UAE” and “Best Credit Card in
UAE” for its Etihad Guest Credit Cards - a range of exclusive, co-branded credit cards with Etihad Airways. The bank
was also named ‘Best Islamic Bank for SMEs’ at the MEA Finance Awards, recognised for its innovative proposition for
small and medium enterprises (SMEs) and its status as a preferred bank for entrepreneurs seeking Shari’a -compliant
products and services for their businesses.
As part of its commitment to the UAE community, the Emirates Islamic Charity Fund provides financial aid to those in
need, with a focus on food, shelter, health, education and social welfare contributions.
For further information please visit www.emiratesislamic.ae
Or please contact:
Amina Al Zarooni
Media Relations Manager, Emirates Islamic
Tel: +971 4 4397430; Mob: +971 56 6405080
Email: AminaAlZarooni@emiratesislamic.ae
Ibrahim Sowaidan
SVP - Head - Group Corporate Affairs
Emirates NBD
Tel: +971 4 609 4113 / +971 50 6538937
Email: ibrahims@emiratesnbd.com
Page 3 of 3 | positive |
Date: 12/08/2022
SALAMA reports H1 net profit of AED 19.20 million,
achieving market leadership in digital takaful solutions
Highlights:
- Records net profit of AED 19.20 million in H1 2022 - driven by strong
operational efficiencies, product innovation and digital transformation
initiatives.
- Net profit for H1 2022 compared to same period last year was
adversely impacted by lower investment income.
- Robust business performance with Gross written contribution of AED 574
million.
- Achieves market leadership in offering largest number of digital takaful
solutions to customers and partners, well poised to benefit from this
growth opportunity in the second half of 2022.
- Strong performance by subsidiaries in Egypt and Algeria, which
achieved profitability growth of 64% YOY.
- 15.88% YOY improvement in General and Administrative expenses in H1
2022, thanks to the deployment of strict cost control measures.
- Optimistic on delivering sustained, profitable growth for remaining part
of 2022 with focused execution towards partnerships, product
innovation and hyper-personalised digital solutions.
Dubai, August 12, 2022: Islamic Arab Insurance Company, listed as "SALAMA" on DFM,
today announced its audited financial results for the period ending June 30, 2022. The
Company reported a net profit of AED 19.20 million in the first half of the year.
SALAMA remained on track to achieve its operational objectives in H1 2022, led by
the continued development of its digital capabilities, bolstering other aspects of the
business - including prudent underwriting, client portfolio diversification, new
partnerships, and improved distribution channels – providing seamless access to
SALAMA’s offerings across varied consumer segments.
In the UAE, SALAMA remained profitable, while its subsidiaries in Algeria and Egypt
exceeded performance compared to the same period last year, reporting
profitability growth of 64%. General and administrative expenses in H1 2022
improved by 15.88% compared to the same period last year.
SALAMA - PublicSALAMA's gross written contributions reached AED 574 million in the first half of the year
in a price-sensitive and competitive market environment.
The first half also saw SALAMA establishing new strategic tie-ups with banks in the UAE
to provide omnichannel Takaful solutions to bank customers. In addition, SALAMA
partnered with insuretech providers such as Wellx, to provide hyper-personalised
takaful solutions to their customers via wearables technology. In doing so, SALAMA
goes above and beyond offering hyper customised Takaful solutions that will positively
impact consumers and help them cultivate wellness and safety behaviours.
As part of its strategy to cater to a diverse customer base and reach untapped market
segments, SALAMA partnered with policybazaar to offer online insurance for non-
GCC specification cars. Through this partnership, SALAMA is providing seamless and
fast online insurance for owners of non-GCC-specification cars who have not had
access to comprehensive auto insurance in the past.
As more partners, including banks, broker aggregators and e-commerce platforms,
choose SALAMA as their preferred digital takaful solutions provider for end-to-end
policies onboarding and issuance, the number of retail and e-commerce policies
issued by SALAMA online has also multiplied.
The Takaful insurer has also been busy expanding its direct-to-customer portfolio with
product lines such as enhanced medical, motor, home, pet insurance and recently
added essential benefit plan that allows instant issuance of policy and generates
health card online. In 2022, SALAMA launched a WhatsApp channel for customers
to access its services and products and is now one of the first providers to offer end-
to-end pet insurance through Whatsapp. Users can now fill out their application,
make the payment and get the insurance policy documents issued - all through
Whatsapp.
Commenting on the first half yearly performance, Jassim Alseddiqi, SALAMA's
Chairman said: "The first six months of the year have been pivotal for SALAMA, as we
have made visible progress in bringing innovative takaful solutions to more segments
of the population - all thanks to our well-executed digital-led business transformation
initiatives. Having achieved so much in the first half of the year, we are optimistic
about the progress we can make for the rest of the year. This is underlined by our
strong commitment to value creation in line with shareholder and policyholder
expectations."
Fahim Al Shehhi, CEO of SALAMA, said: " SALAMA's robust performance in the first half
of the year is a testament to the progress we have made in our key strategic pillars
that include digitalization, innovation and collaboration. With our all-encompassing
SALAMA - Publicdigital capabilities, we are well positioned to grow and expand, led by an aggressive
customer acquisition strategy. Growing our life and non-motor businesses is also a
focus for us. We are confident about our prospects for the second half of the year
and reaffirm our commitment to making Takaful and its benefits as seamless as
possible for everyone."
-Ends-
Press Contact
SALAMA ASDA’A BCW
Sadia Noori Dhanya Issac
Head of Marketing Associate Director
Tel: +971 4 407 9940 Tel: +971 4 450 7600
Email: sadia.noori@salama.ae Email: dhanya.issac@bcw-global.com
Notes to editor:
About SALAMA Islamic Arab Insurance Company
About SALAMA Islamic Arab Insurance Company:
SALAMA Islamic Arab Insurance Company is one of the world’s largest and longest-established Shari’ah
compliant Takaful solutions providers listed on the Dubai Financial Market, with paid-up capital of
Dh1.21bn. SALAMA has been a pioneer in the Takaful industry from its incorporation in 1979 to the present
day.
SALAMA’s stability and success can be attributed to its customer-centric approach, keeping clients and
partners at the heart of the business, and its commitment to its core values and principles. SALAMA
continues to design and develop solutions that meet the ever-changing demand of customers. Today,
SALAMA is recognized for providing the most competitive and diverse range of Takaful solutions in the
region.
SALAMA serves individual customers and institutions in the UAE and, through its extensive network of
subsidiaries and associates in Egypt and Algeria.
As the UAE’s leading Takaful company, SALAMA offers a comprehensive range of family, motor, general
and health Takaful solutions. Due to its reputation for high-quality products and services and
implementation of Takaful best practice, SALAMA won the “Family Takaful Company of the Year” at
Middle East Insurance Industry Awards 2015, “Best Family Takaful Operator ME” at Islamic Banking &
SALAMA - PublicFinance Awards 2016, “Best Takaful Operator” at Islamic Business and Finance Awards 2019, “Takaful
Company of the Year” at Middle East Insurance Industry Awards 2020, “Takaful Company of the Year -
UAE ” at Global Business Outlook Awards 2021, “Best Takaful Service Provider” at Global Economics
Awards 2021, “Decade of Excellence Takaful Provider - UAE” at Global Banking & Finance Awards 2021,
“Takaful Specialist of the Year” at The Mena Insurance Awards 2022, and the recent “Leading Innovative
Takaful Solution Provider” at Insuretek Middle East Insurance Industry Awards 2022.
SALAMA continues to be the preferred Takaful partner by its partners and customers, remaining
committed to ‘Securing our future – together.’
SALAMA - Public | positive |
Press Release
SHUAA Capital delivers AED 20 million net profit in Q3 2022
driven by strong recurring revenues
§ Net profit attributable to shareholders of AED 20 million in Q3 2022 compared to a net
loss of AED 170 million in Q2 2022 underpinned by strong revenues.
§ Third quarter net operating income (excluding one-off items) of AED 14 million compared
to AED 6 million in Q2 2022, backed by strong recurring revenues across all segments while
maintaining firm cost discipline across the Group.
§ Cost to income ratio at 77% in Q3 2022 significantly lower than the 90% in Q2 2022.
Expanding operating margins for the business in Q3 2022 driven by lower costs.
§ Continued disciplined approach to deleveraging with debt-to-equity ratio at 124% in Q3
2022. Balance sheet metrics expected to improve in Q4 2022 driven by higher profitability
and further reduction of leverage.
United Arab Emirates, 10 November 2022: SHUAA Capital psc (DFM: SHUAA), the leading asset
management and investment banking platform in the region, has announced its financial results
for Q3 2022. In the third quarter, SHUAA and its subsidiaries (the "Group") reported a net profit
attributable to shareholders of AED 20 million compared to a net loss of AED 170 million in the
previous quarter. The Group reported a net operating income (excluding one-off items) of AED
14 million compared to AED 6 million in Q2 2022 as recurring revenues continue to build a stable
moat and cost optimization measures taken earlier starting to improve profitability.
Further consolidation of recurring revenues and continued cost optimization initiatives
In the third quarter, SHUAA delivered another set of strong recurring revenues of AED 60 million
across all business segments of the Group.
§ The Group’s Asset Management segment delivered a healthy performance of AED 31
million of revenues, driven by the strong contribution from fee earning AuM within real
estate as well as managed public and private market funds.
§ The Group's Investment Banking business reported revenues of AED 5 million due to higher
advisory and trading income compared to the second quarter.
§ Northacre recently announced project completion of The Broadway, a USD 1.5 billion+
contemporary residential and mixed-use development with unrivalled views across
Westminster and St James’s Park in London.
§ Revenues from our Corporate segment remained robust at AED 24 million amidst
prolonged market volatility. In line with our strategy of divesting non-core assets, we
expect revenues from the corporate segment to run off in the coming quarters.
1Press Release
§ The cost-income ratio of 77% in Q3 2022 is significantly lower than the 90% in Q2 2022. Cost
optimization initiatives are expected to continue with the cost-income ratio expected to
meet management mid-term target of 65%.
Positioned to benefit from the GCC's strong economic fundamentals and growth outlook
SHUAA is well positioned to benefit from the GCC's positive economic outlook despite the weak
global backdrop. The International Monetary Fund (IMF) projects that the Middle East will be
one of the global growth outperformers in 2022. The UAE is forecast to grow 5.1% this year, while
Saudi Arabia is expected to grow 7.6% in 2022, the fastest among the Fund’s main forecasts.
Higher oil prices this year have led to GCC budgets running surpluses, strengthening sovereign
balance sheets, and resulting in a surplus of capital being available for investment opportunities.
Commenting on SHUAA's Q3 2022 results, Fawad Tariq Khan, Group Chief Executive Officer of
SHUAA Capital, said: "Despite the prolonged global market volatility, our core operating business
remained resilient and delivered another strong set of recurring revenues across all business
segments. We remain committed to providing pioneering investment solutions to our clients, as
evidenced by the project completion of The Broadway and the increase in the number of
managed funds our clients have access to with the recent addition of USD 220 million in new AuM
to our Discretionary Portfolio Management and funds in the third quarter of 2022.”
Ends
Press Contacts
SHUAA Capital psc ASDA’A BCW
Hani El Abid Dhanya Issac
Head of Marketing and Communications Associate Director
Tel: +971 4 3199 723 Tel: +971 4 450 7600
Email: helabid@shuaa.com Email: dhanya.issac@bcw-global.com
www.shuaa.com www.asdaa-bcw.com
About SHUAA Capital psc
SHUAA Capital psc (DFM: SHUAA) is a leading asset management and investment banking
platform. SHUAA Capital psc is recognized for its strong track record and pioneering approach
to investing through a differentiated, innovative, and global product offering focused on public
and private markets, debt, and real estate.
The asset management segment, one of the region’s largest, manages real estate funds and
projects, investment portfolios and funds in the regional equities, fixed income, and credit
markets; it also provides investment solutions to clients, with a focus on alternative investment
strategies. The investment banking segment provides corporate finance advisory, transaction
services, private placement, public offerings of equity and debt securities, while also creating
2Press Release
market liquidity on OTC fixed income products. The firm is regulated as a financial investment
company by the Securities and Commodities Authority.
To learn more about SHUAA Capital, please visit:
§ Website: www.shuaa.com
§ Twitter: https://twitter.com/SHUAA_Capital
§ LinkedIn: https://www.linkedin.com/company/shuaa-capital
§ Facebook: https://www.facebook.com/SHUAA.Capital.psc
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 future of our
business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Forward-
looking statements can be identified by words such as: "anticipate," "aspire," "intend," "plan," "goal," "objective," "seek," "believe,"
"project," "estimate," "expect," "forecast," "strategy," "target," "trend," "future," "likely," "may," "should," "will" and similar references to
future periods.
Examples of forward-looking statements include, among others, statements we make regarding:
§ Expected operating results, such as revenue growth and earnings.
§ Anticipated levels of expenditures and uses of capital.
§ Ability to identify and merge with a target and access to capital markets.
§ Current or future volatility in the capital and credit markets and future market conditions.
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition
may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-
looking statements. Important factors that could cause our actual results and financial condition to differ materially from those
indicated in the forward-looking statements include, among others, the following: Our ability to maintain adequate revenue levels
and cost control; economic and financial conditions in the global markets and regional markets in which we operate, including
volatility in interest rates, commodity and equity prices and the value of assets; the implementation of our strategic initiatives,
including our ability to effectively manage the redeployment of our balance sheet and the expansion of our strategic businesses; the
reliability of our risk management policies, procedures and methods; continued volatility in the capital or credit markets; geopolitical
events; developments and changes in laws and regulations, including increased regulation of the financial services industry through
legislative action and revised rules and standards applied by our regulators.
Any forward-looking statement made by us in this document and presentation is based only on information currently available to
us and speaks only as of the date on which it is made. No representation or warranty, express or implied, is made as to the accuracy,
completeness or fairness of the information and opinions contained in this document. We undertake no obligation to publicly update
any forward-looking statement whether as a result of new information, future developments or otherwise.
Please remember that past performance may not be indicative of future results.
3 | positive |
"Th
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RAK PROPERTIES.
DIRECTORS REPORT FOR 6 MONTHS PERIOD ENDED 30 JUNE 2022
On behalf of the Board of Directors of RAK Properties PJSC, I am pleased to present the financial
result of the company for first half 2022.
H1 of the year 2022 Key Financial Highlights:
Revenue for the period amounted to AED 193.99 million vs AED 265.10 million same period
last
year.
Net Profit for the period amounted to AED 25.55 million vs AED 119.81 million same period
last year.
Total comprehensive income for the period amounted to AED 25.74 million vs AED 106.58
million same period last year.
Total Asset stood by AED 6.23 billion in H1 2022 vs AED 6.21 billion in December 2021.
Total Equity stood by AED 4.13 billion in H1 2022 vs AED 4.10 billion in December 2021
Income Statement rt. ..,, AED Million
.=01...
M..M.
30th June 2022 30th June 2021
Revenue 193.99 265.10
Cost of Revenue (134.91) (159.06)
Gross Profit 59.08 106.04
Operating Profit 37.95 125.87
Profit for the period 25.55 119.81
Total comprehensive income 25.74 106.58
Financial Position AED Million
30th June 31' Dec
2022 2021
Non -Current Assets 5,186.86 5,185.44
Current Assets 1,045.59 1,028.88
Total Assets 6,232.45 6,214.32
Non -Current Liabilities 1,187.46 1,210.10 a)
aA Current Liabilities 917.84 896.81 ro _ Capital and Reserves 4,127.15 4,107.41 C_
Total Equity & Liabilities 6,232.45 6,214.32 %-1
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$/%11 I 21
IL.1_11_o4J1 . +971 7 227 24444 +971 7 228 4777: La j_u1j 31113,J..,p (4)L)
THE EMIRATES Towards the next Fifty P.O. BOX 31113, Ras Al Khaimah, U.A.E. I Tel: +971 7 228 4777 I Fax :+971 7 227 2444 I www.rakproperties.ae
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RAK PROPERTIES.
Development Update
Residential Projects:
-
1. Marbella Villas, Mina Al Arab, Ras Al Khaimah 207 villas and townhouses
Completed and handing over has been done to end users.
-
2. Julphar Residence, Reem Island, Abu Dhabi 266 apartments
The Project is completed and BCC issued
Hospitality Projects:
1. Intercontinental Ras Al Khaimah Mina Al Arab Resort and SPA
Hotel is in operation now from 11th February 2022
2. Anantara Mina Al Arab Hotel and Resort, Ras Al Khaimah
The construction is progressing as per development plan
These two premium assets will add significant value to the revenue stream and strengthen the balance
sheet of the company.
Upcoming Projects:
1. Bay Residence, Hayat Island, Mina Al Arab, Ras Al Khaimah
Project construction contract has been awarded, which is under mobilization now, and tower 2
sales has been started in Q2 2022 2. Gateway Residence 2, a residential tower in Hayat Island, Mina Al Arab
Construction contract has been awarded and Sales has been launched in Q1 2022 3. Marbella Extension, a residential villa in Hayat Island, Mina Al Arab
Final design is under review and project will be launched soon.
4. Beach Front Plot, in Hayat Island, Mina Al Arab
Development of 14 beach front plot in Hayat Island is under design stage
a)
Mohammad Al Tair
a_
Acting Chief Executive Officer
I' I
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EHT | positive |
H1 and Q2 2023
Financial Results
10 A ugust 2023
2023
H1 / Q2
H1 / Q2 2023 RESULTS PRESS RELEASE 1Al Ansari Financial Services Reports 5% Increase in Operating
Income to AED 578 Million in H1 2023 as it Makes Significant
Progress on Growth Strategy
KEY H1 2023 HIGHLIGHTS
ROBUST GROWTH IN OPERATING INCOME Operating Income
- Operating Income rose 5% year on year (YoY) to AED 578 AED 578 million
million driven by a 10.7% YoY increase in total transactions 5% YoY
across the Group’s offerings.
EBITDA HOLDS STEADY DESPITE INCREASED OPERATING
EBITDA
COST
AED 299 million
- EBITDA came in at AED 299 million, little changed from a year
ago despite a rising operating cost environment.
BANK NOTES AND WPS ARE TOP PERFORMERS
- Strong growth in Bank Notes business driven by the tourism Corporate
boom and peak travel period. Business
- Wage Protection System (WPS) supported by strong growth in 33.9% YoY
the number of wage disbursals on the back of strong customer
retention and acquisition.
CORPORATE BUSINESS CONTINUES TO GROW, IN LINE WITH Digital Channels
EXPECTATIONS 31% YoY
- 33.9% YoY surge in the value of transactions to corporate
customers, in line with Group’s efforts to boost offering to an
underserved but promising segment.
No of Transactions
24.4 million
DIGITAL CHANNELS ARE GAINING IN POPULARITY
- 31% YoY growth in number of transactions conducted across 10.7% YoY
Group’s digital channels, supporting efforts to enhance
customer journey and lower costs to serve.
Branches
PLANNING TO EXPAND INTO OMAN THROUGH THE +15
ACQUISITION OF ONE OF THE LEADING EXCHANGES since H1 2022
- Group secures approval to acquire controlling stake in leading
exchange company in Oman, in line with strategy to expand in
GCC region.
EXCHANGE UNIT PROGRESSING NICELY WITH NETWORK
EXPANSION PLANS
- 15 new Al Ansari Exchange branches opened across the UAE
since H1 2022, in line with Group’s ambitions to further cement
its domestic leadership position.
REAFFIRMING COMMITMENT TO DIVIDEND IN OCTOBER 2023
- Board reaffirms commitment to distributing a minimum of AED
600 million to shareholders, with the first interim payment
expected in October 2023.
H1 / Q2 2023 RESULTS PRESS RELEASE 2Dubai, UAE - 10 August 2023 - Al Ansari Financial Services PJSC (DFM: ALANSARI), (the
“Group”), one of the leading integrated financial services groups in the UAE and the parent of
Al Ansari Exchange, today announced its financial results for the fiscal first half (“H1”) and
second quarter (“Q2”) 2023, ended 30 June 2023. Operating income for the Group increased
by 5% year on year (YoY) in H1 2023, on robust demand across all products with significant
contribution from offerings and services to corporate customers.
Financial Highlights
In AED H1 2023 H1 2022 % change Q2 2023 Q2 2022 % change
thousands (YoY) (YoY)
(unless
otherwise
stated)
Operating
578,026 550,761 5.0% 291,004 287,645 1.2%
Income
EBITDA 298,620 300,932 (0.8)% 147,238 160,598 (8.3)%
EBITDA
51.66% 54.64% (2.9)% 50.60% 55.83% (5.2)%
Margin (%)
Net Profit 263,293 269,969 (2.5)% 130,284 145,856 (10.7)%
Earnings
0.0351 0.0360 (2.5)% 0.0174 0.0195 (10.7)%
per Share
Free Cash
278,130 287,917 (3.4)% 137,415 151,238 (9.14)%
Flow(FCF)
H1 2023 Operational Highlights
H1 2023 H1 2022 Change (unit)
No. of physical branches in UAE 238 223 Net 15 new
branches
Total No. of transactions 24.4 mn 22.0 mn 10.7% YoY
Corporate business - value of AED 54.3 bn AED 40.5 bn 33.9% YoY
transactions
Digital Channels - No. of 1.9 mn 1.4 mn 31%
transactions
H1 2023 Financial Performance Commentary
• H1 2023 Operating Income increased 5.0% YoY to AED 578 million driven by a 10.7%
YoY increase in the total number of transactions. This marks the highest six-month period
operating income to date.
• The increase in the number of transactions was predominantly driven by very strong
demand from the Corporate business segment underpinned by expansionary economic
conditions in the UAE. It was also owed to a strong increase in the Bank Notes business
including multi-currency Prepaid Cards on the back of the tourism boom and the peak
holiday season. These increases were partly offset by a marginal reduction in the number
of Remittance transactions.
H1 / Q2 2023 RESULTS PRESS RELEASE 3• H1 2023 EBITDA held steady at AED 299 million compared to H1 2022 despite an
increase in costs.
o Increase in costs during the period is directly related to the opening of 15
new branches since H1 2022, in line with Group’s organic expansion plans.
o Costs have also increased as a result of the rising cost environment, a factor
impacting the exchange industry across the UAE.
• H1 2023 Net profit was AED 263 million, registering a 2.5% decline compared to H1 2022.
The drop in net profit was predominantly driven by lowering remittance margins, higher
costs as well as an increase in financing costs related to interest paid on a loan drawn in
December 2022.
• CAPEX increased by 62% YoY to AED 20 million as the Group continues to invest in
scaling its business, in line with its growth strategy.
• The Group sustained a healthy FCF of AED 278 million, supported by strong cash
conversion.
Q2 2023 Financial Performance Commentary
• Q2 2023 Operating Income increased 1.2% YoY to AED 291 million mainly attributed to
strong growth in the Bank Notes, WPS and Other services, while we saw a slight decline
in the income from Remittance business.
• Q2 2023 EBITDA income declined 8.3% to AED 147 million, on the back of higher
operating costs, driven predominantly by Group’s network expansion as well as generally
rising costs, an industry-wide phenomenon and lower margin on the Remittance business.
• Net profit for the three-month period declined 10.7% to AED 130 million, on the back of
higher depreciation charge as a result of an expansion in the branch network and
increasing finance costs due to interest payment on an AED 300 million term loan drawn
in December 2022.
Performance of other offerings
• Worldwide Cash Express, the Group’s money transfer operator, saw a strong 32% YoY
growth in the number of transactions in H1 2023, a reflection of the strong demand for this
service from corporate customers.
• The Wage Protection Services (WPS) business saw a strong increase in Operating
Income, up 18.5% in H1 2023 versus H1 2022. This is predominantly driven by growth in
the number of newly acquired corporate customers and the increase in the number of
wage disbursals.
• CashTrans, the Group’s end-to-end cash management solution, is gaining remarkable
momentum, with the number of trips increasing by 32.4% YoY. The Group expects the
growth momentum to continue as it ramps up operating and sales efforts within this
product line and as its state-of-the-art cash center in Dubai commences operations in Q3
2023.
Dividend
• Given the Group’s strong financial and liquidity position, the Board reaffirms its
commitment to distributing a minimum amount of AED 600 million as announced during
H1 / Q2 2023 RESULTS PRESS RELEASE 4rl
the IPO, and outlined in the Prospectus, for FY 2023 to be paid out semi-annually with the
first half expected to be distributed in October 2023 and the second payment to be
disbursed in April 2024.
Commenting on the results Rashed A. Al Ansari, Group CEO of Al
I
Ansari Financial Services, said: “Our focus since the start of the year has
been on executing our growth strategy while continuing to produce robust
L
financial results. I am pleased to say that we have delivered on both fronts.
As the UAE economy continues to grow at a very healthy pace, our diverse
offerings served us well, with strong demand from different customer
segments, notably SMEs, and inbound and outbound tourism. This has
contributed to sustained top-line growth. Moreover, thanks to our leading market position, the
quality of our services and value-added products, the efforts of our teams, and our well-
recognised brand, we grew and further diversified our customer base during the period. Our
efforts to diversify the sources of revenue are contributing towards further enhancing the
resilience of our business model.
We are firing on all cylinders across our businesses. We are investing in our domestic expansion
while also expanding our footprint in other promising GCC markets. Subject to regulatory
approvals and other completion related processes, we are poised to enter the Oman market,
our second foray outside UAE, following Kuwait, by acquiring a controlling stake in one of the
leading exchanges in the Sultanate. We are also investing in further scaling our end-to-end cash
management business, CashTrans, which has so far performed tremendously, and is showing
promising growth potential as we invest in ramping up operations. We are also investing in our
digital channels to ensure we maintain a competitive edge while also optimising costs to serve
customers.
We are well funded for our growth plans, have ample liquidity and a very comfortable leverage
position. Given our robust financial position and our confidence in further unlocking shareholder
value as we boldly execute our growth agenda, the Board is confirming the distribution of the
promised minimum AED 600 million in cash dividends to our shareholders.”
Mohammad Bitar, Deputy Group CEO of Al Ansari Financial Service,
said: “It has been a very busy and exciting period. We are seeing strong
demand for our relatively new offerings, while we continue to sustain our
market leadership position in our core offerings, Remittances and Bank
Notes.
The Bank Notes business performed exceptionally on the back of the strong
demand from inbound tourists, high footfall in prime locations, including malls, as well as an
increase in the number of people travelling abroad. We are very pleased with the exceptionally
strong performance of the Travel Card product, a testament to our success in launching and
continuously enhancing our products to satisfy customer needs. WPS has also delivered a
strong performance, driven by an increase in the number of customers as well as wage
disbursals.
Our effort to grow our B2B business is paying off. The value of transactions surpassed AED 54
billion driven by strong demand from corporate customers for remittances, WPS, bills collection,
H1 / Q2 2023 RESULTS PRESS RELEASE 5and end-to-end cash management. We anticipate the robust growth momentum to continue for
the remainder of the year.
Our digital channels continue to gain in popularity, with a 31% increase in the number of
transactions conducted through those channels across all offerings. Having said that, face-to-
face remittances remain a preferred mode of transaction, with 81% of the remittances in the first
six months of the year conducted in our branches. This further validates our strategic decision
to gain market share by expanding the number of branches across the UAE.
While our cost base has increased compared to the year ago period, mainly attributed to our
aggressive expansion plans, regulatory requirements to achieve Emiratisation targets, and an
overall higher operating cost environment – an industry-wide trend- we believe that once those
15 new branches breakeven, they will contribute towards profitable growth and support EBITDA
margin expansion in the mid-term.
The recently issued Financial Stability Report 2022 by the Central Bank of the UAE solidified
our largest subsidiary’s, Al Ansari Exchange, market leadership position in that it was reported
as making up c.40% of combined Operating Income generated by all 84 operating Exchange
Houses in the UAE during 2022. Al Ansari Exchange also contributed 74% of UAE based
exchange houses’ consolidated net profit for the same period. This is a testimonial to the
Group’s aggressive growth strategy in a cost-efficient manner.”
H1 / Q2 2023 RESULTS PRESS RELEASE 6Other Major Updates
Al ANSARI EXCHANGE KUWAIT ACQUISITION
The Group anticipates completing the 100% acquisition of Al Ansari Exchange
Kuwait before the year-end and expects the impact from the consolidation to be
reflected in Q1 2024 and for the revenue and cost synergies to be unlocked
thereafter.
EMPLOYEES
The Group saw a 19.2% increase in the number of employees in H1 2023
compared to H1 2022 and an 8.3% increase compared to 31 December 2022.
The consistent growth in the number of employees is in line with the Group’s
expansion strategy.
Emiratisation has experienced remarkable growth in H1 2023, compared to the
same period in 2022 with a significant increase of 105%, in the number of Emirati
nationals, in line with the Group's support of the Government's Emiratisation
initiative. This growth can be attributed to various measures taken by the Group,
including providing training and development programmes, and actively seeking
out and recruiting Emirati talent at career events and in collaboration with top
universities in the region.
POST H1 REPORTING PERIOD UPDATES
EXPANSION INTO OMAN THROUGH ACQUISITION
On 7 August the Group announced its plans to expand its geographic footprint
into The Sultanate of Oman through the acquisition of a majority stake in one of
the country’s prominent exchange companies. The Group has received an initial
approval subject to meeting the necessary regulatory conditions. The acquisition
is still in its initial stage and is subject to the necessary regulatory approvals and
due diligence. The anticipated completion date for the acquisition is set for Q1
2024.
H1 / Q2 2023 RESULTS PRESS RELEASE 7Appendix 1 Description of Al Ansari Financial Services’ Product Offerings
Remittances The Group provides remittances at its retail branches and via its
digital channels, offering domestic and global money transfers
through its proprietary money remittance platforms, Cash
Express, Global Fund Transfer and Worldwide Cash Express, as
well as through its money transfer operator partners such as
Western Union and its transfer payment network where transfers
to bank accounts are executed via money transfer services such
as SWIFT or Ripple. The Group offers remittances for its retail
and corporate customers.
Bank Notes The Group's retail and wholesale foreign currency exchange
services primarily comprise the sale and purchase of foreign
currency directly to and from retail and wholesale customers. The
Group offers its bank notes services in over 70 currencies across
all its branches. The Group also offers pre-paid cards as part of
its retail foreign currency exchange services. Both the Group's
Travelcard and FlexiblePay products are reloadable pre-paid
cards that can store either single or multiple currencies and allow
the conversion of such currencies into other currencies by the
user. These pre-paid cards, where available, can be purchased
or reloaded in the Group's branches, online or through the mobile
a pp.
Wage Protection System The Group offers corporate payroll solutions, executing wage
(“WPS”) payments on behalf of companies operating in the UAE in
compliance with the directives of the UAE's Ministry of Human
R esources & Emiratisation, under the WPS initiative.
Other Services The Group's other offerings include, among others, bill payment
a nd end-to-end cash management solutions.
H1 / Q2 2023 RESULTS PRESS RELEASE 8Appendix 2: Glossary of Terms
Term Definition
Corporate business Products and services offered to Corporate Customers, including
or B2B business WPS, Bill Collection, End to End cash management, Remittances,
Bank Notes.
Digital business All transactions conducted through digital channels across all products,
including Remittances, Travel Card, Bill Collection and WPS.
Digital outward Outward personal remittances conducted through digital channels.
personal remittances
Operating Income Operating Income is defined as “Income” excluding “Other income” and
“Interest income – net”. In other words, it is income generated from the
Group’s operations.
EBITDA EBITDA is defined as “Profit for the year” excluding “Depreciation and
Amortisation”, “Finance cost on lease liabilities” and “Interest income –
net”.
EBITDA Margin EBITDA margin is calculated as EBITDA divided by operating income.
Number of The number of transactions conducted by the Group per product
transactions (Remittances, Bank Notes, WPS) or by channel (in person, digital) or
by customer segment (Retail, Corporate)
Value of transactions The aggregate nominal value of executed transactions, which is
calculated by: number of transactions x AED value per transaction.
Free Cash Flow Free Cash Flow is calculated as “EBITDA” minus “CAPEX”
H1 / Q2 2023 RESULTS PRESS RELEASE 9 | positive |
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tabreed
Tabreed Announces Q1 2023 Results, Showing Net Profit of
AED 236.4 Million
• Partnership with Saudi Arabia’s Public Investment Fund results in 30% stake
• Group well positioned for further growth during 2023
Abu Dhabi, United Arab Emirates – 12 May 2023: Tabreed, the UAE headquartered leading
international district cooling developer, today released its consolidated financial results for the
first quarter of 2023, reporting a net profit of AED 236.4 million, compared to AED 88 million
during the same period in 2022.
In the three months ended on 31 March 2023, Tabreed’s revenue increased by 10% YoY to AED
464 million, from AED 420 million in Q1 2022. This was mainly driven by increases in new
connections during the past 12 months and higher consumption volumes.
Further new customers and projects were added during the first quarter, with an addition of
12,000 Refrigerated Tons (RT) across the UAE and Oman, increasing Tabreed’s total connected
capacity to 1.276 million RT. Additionally, in February, Saudi Tabreed entered a partnership with
the Saudi Public Investment Fund (PIF) as a new shareholder with a 30% stake, reflecting the
Group’s continual focus on high potential growth markets.
Financial highlights – three months ended 31 March 2023:
• Group revenue increased by 10% to AED 464 million (Q1 2022: AED 420 million)
• Profit from Operation increased by 12% to AED 172 million (Q1 2022: AED 154 million)
• EBITDA increased by 1.5% to AED 268 million (Q1 2022: AED 264 million)
• Net profit attributable to the parent is AED 236 million (Q1 2022: AED 88 million)
Operational highlights – three months ended 31 March 2023:
• Total connected capacity reached 1.276 million Refrigeration Tons (RT)
• 12,000 Refrigeration Tons (RT) of new customer connections added, with load additions
of 11,000 RT in the UAE and 1,000 RT in Oman
• Tabreed achieved a record 17.7 million hours worked without a single lost time incident
(LTI), the most recent occurring in July 2015
Commenting on the results, Khaled Abdulla Al Qubaisi, Tabreed’s Chairman, said: “As we mark
our 25th year of operation, Tabreed has closed a solid first quarter, backed by robust financialperformance and the achievement of operational milestones that have set the company up for a
successful 2023.
“For the remainder of the year, we will continue to focus on our sustainable and strategic growth
plans which will see Tabreed grow its regional and international reach in close alignment with
governments and legislators, and deliver strong results that benefit our shareholders, employees,
partners, and the communities in which we operate.
“And as the UAE prepares to host COP28 later this year, we are proud that are our focus on
innovation and efficiency is reducing carbon dioxide emissions and supporting the development
of sustainable cities across the region.”
-ENDS-
About National Central Cooling Company PJSC (Tabreed)
Tabreed provides essential and sustainable district cooling services to iconic developments such
as the Burj Khalifa, Sheikh Zayed Grand Mosque, Louvre Abu Dhabi, Ferrari World, Emirates
Towers, Yas Island, Al Maryah Island, The Dubai Mall, Dubai Opera, Dubai Metro, Bahrain
Financial Harbor and the Jabal Omar Development in the Holy City of Makkah. The company owns
and operates 86 plants in its portfolio across the GCC, including 75 in the United Arab Emirates,
three in the Kingdom of Saudi Arabia, seven in Oman and one in the Kingdom of Bahrain, in
addition to other international projects and operations.
Tabreed is a leading driver of progress for people, communities and environments around the
world towards a more sustainable future. Founded in 1998 and publicly listed on the Dubai
Financial Market, it is one of the UAE’s strongest growth companies. Through its extensive
regional and international operations, industry-leading reliability and efficiency, R&D
programmes and investment in AI technology, Tabreed further solidifies its position as the
industry's global leader. In addition to district cooling, Tabreed’s energy efficiency services
extend the company’s sustainability impact, helping businesses and organisations to improve
their overall energy consumption, in turn reducing CO emissions and assisting in the
2
achievement of carbon neutrality objectives. | positive |
Press Release
Drake & Scull International Announces Q2 2022
Results
Dubai, UAE, 12 August 2022: Drake & Scull International PJSC (DSI), a regional
market leader in integrated design, engineering, and development in the (MEP),
Water and Power and Oil and Gas sectors released today its reviewed financial
results for the Q2 ended 30 June 2022 reporting a Gross Profit of AED 1 million
compared to a Gross Profit of AED 11 million for the same period in 2021.
Revenue achieved was AED 45 million compared to AED 82 million for the same period
in 2021.
Loss from continued operations was AED 90 million compared to a profit of AED 77
million for the same period in 2021.
Reduction in general and administrative expenses from AED 33 million to AED 23
million, equivalent to 31%, compared to the same period in 2021.
Accumulated Losses increased to AED 4,963 million compared to AED 4,824 million for
the same period in 2021.
Total Negative Equity increased to AED 3,975 million compared to AED 3,829 million
for the same period in 2021.
DSI order backlog is AED 474 million driven by ongoing operations in the UAE and
overseas countries.
Commenting on the announcement, Eng. Shafiq Abdelhamid, Chairman of DSI
PJSC, said, “Further to our previous announcement on 23 May 2022 related to
completing the restructuring process, we are currently focusing on obtaining the
approval of the competent court to be able to implement the plan.
At the last hearing on 20th April 2022, the court decided to appoint an expert to
review the procedure that has been taken by the company in relation with the
requirements of the restructuring plan.
The expert submitted his report confirming the company's ability to implement the
restructuring plan.The company is looking for the next hearing on 5th of September 2022 for the court
review and decision.
Once the procedures for the application submitted to the court are completed, the
rest of the procedures agreed upon in the plan will be completed, including raising
the company's capital and submitting a request to return the company's shares to
trade in the Dubai Financial Market.
We are grateful for the patience of our shareholders as we seek to restructure the
company, thereby protecting as far as possible their investments and the livelihoods
of many hundreds of families. We will continue to make all possible efforts to ensure
that DSI PJSC shares will resume trading on the Dubai Financial Market after the
completion of the restructuring”.
-Ends-
About Drake & Scull International PJSC
Drake & Scull International PJSC (DSI) is a regional market leader in world-class Integrated Design,
Engineering, and Construction projects. DSI‘s main business streams include Engineering (MEP),
Construction, District cooling plants, Oil & Gas, and Water & Wastewater Treatment plants. The company
operates across the GCC & rest of the Middle East as well as Europe. DSI has completed more than 700
projects around the world in the Residential and mixed-use real estate, Aviation, Power plants, District
cooling plants, Hospitality, Healthcare, Renewable energy, Data center, Petrochemical, Rail, Commercial,
Government, Leisure and Infrastructure sectors.
For media inquiries, please contact:
Drake & Scull International PJSC
Sherouk Elghobashy
Investor Relations
Tel: +971-4-528-3444
E-mail: IR@drakescull.com | neutral |
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Mashreq reports a Net Profit of AED 1.6 Billion on the back of a
96% increase in operating profits for the first quarter 2023
Mashreq announces the financial results for Q1 2023 demonstrating a robust performance
and crossing the AED 200 billion in total assets milestone, as outlined below:
Key highlights:
1. Strong Growth in Operating Income & Net Profit
96%
a) Operating profit at AED 1.8 billion represents a 96% increase
compared to Q1 2022 driven by healthy operating income growth Operating profit growth
in the UAE and across other countries. Improved efficiency – cost
to income ratio stands at 30.2% in Q1 2023 compared to 40.3% in
Q1 2022
1.6 billion
b) Mashreq’s non-interest income to operating income ratio continues to
remain one of the industry’s best at 30.7% Net profit (AED)
c) Credit cost decreased by 58% year on year. This coupled with a solid
operating income growth allowed Mashreq to post a strong Net Profit
of AED 1.6 billion in Q1 2023
28.4%
Return on equity
2. Stable Growth in the Loan Portfolio & Healthy Asset Quality
a) Total Loans and Advances increased by 5.6% year-on-year and
stands at AED 91.1 billion 3.4%
b) Loan-to-Deposit ratio was at 75.8% at the end of March 2023
Return on assets
(79.4% in December 2022)
c) Non-Performing Loans to Gross Loans ratio declined to 1.9% as of
end of March 2023 (2.2% as of December 2022)
4.0%
Net interest margin
3. Healthy Liquidity & Capital Position
a) Growth of 5.6% YTD in Customer deposits to reach AED 120.2 billion
b) Liquid Assets ratio stood at 35.6% as of March 2023 (33.5% in
17.4%
December 2022)
c) Capitalization levels have improved significantly with the Capital Capital adequacy ratio
adequacy ratio at 17.4% and Tier 1 Capital ratio at 15.1% as of
March 2023
30.2%
4. Enhanced Credit Environment
Cost income ratio
a) Impairment allowance reduced significantly to AED 96 million in Q1
2023 on the back of improved asset quality and represents only 0.1%
of net loans
b) Total provision for loans and advances reached AED 4.9 billion and 1.9%
coverage ratio improved to 231.3 % as on 31st March 2023 (190.8%
NPL gross loans ratio
in December 2022)
Management Discussion & Analysis Report | 2H.E. Abdul Aziz Al Ghurair
Chairman of Mashreq, said:
“Owing to robust growth in operating income, enhanced efficiencies, and improved risk position, Mashreq
concluded the first quarter of 2023 with outstanding financial results, demonstrating nearly double
year-on-year operating profits and crossing the AED 200 billion in total assets milestone.
As a challenger bank, Mashreq actively participated in the UAE’s innovation ecosystem during Q1, becoming
a founding member of the DIFC’s venture-building program, Launchpad. The Bank’s performance was
further supported by the introduction of numerous platforms and digital journeys, both domestically and
internationally, across retail, business, and corporate and investment banking.
The effectiveness of Mashreq’s digital strategy is evident through the substantial increase in customer
deposits, improved cost-to-income ratio, and remarkable net profit growth. These achievements have
been driven by various factors, such as enhanced asset quality, a decrease in non-performing loans, and a
favorable non-interest income to operating income ratio.
Moreover, the progress made in product expansion and geographic reach during Q1 marks a crucial milestone
for the Bank, with the approval of a digital license in Pakistan and considerable expansion in Egypt. Mashreq’s
performance in these and other international markets led to numerous awards in Q1, not only in the UAE but
also in Egypt, Kuwait, and Qatar.
Mashreq places a strong emphasis on sustainability, especially as the UAE is set to host COP 28, further
highlighting the nation’s commitment to environmental and social responsibility. In Q1, the Bank made
significant strides in its sustainability journey, obtaining third-party assurance for its Sustainability Report
in line with international standards.
We foresee that through our proactive involvement in the innovation ecosystem, technology-driven
customer personalization, and an unwavering focus on efficiencies, Mashreq will persist in supporting the
UAE economic growth across economic cycles and amidst global uncertainties throughout 2023.”
AED 200 Bnn Crossed total assets milestone
Management Discussion & Analysis Report | 3Ahmed Abdelaal
Group Chief Executive Officer, said:
“I am delighted to announce Mashreq’s strong financial performance in Q1 2023, a testament to our ability
to adapt to changing market conditions and our unwavering commitment to delivering sustained value to
our stakeholders. Our focus on healthy operating income growth and enhanced efficiency has resulted in
an impressive operating profit growth of 96% compared to Q1 2022. We have maintained a strong liquidity
and capital position, with customer deposits growing by 5.6% YTD to reach AED 120.2 billion, and our
non-interest income to operating income ratio remaining high at 30.7%, showcasing our ability to create
diversified income streams.
We continue to achieve stable growth in our loan portfolio, with 5.6% YoY increase in total loans and
advances to reach AED 91.1 billion, while maintaining a prudent approach to risk management as reflected in
our reduced impairment allowance and declining non-performing loans to gross loans ratio. Our commitment
to sustainability has been further strengthened through third-party assurance on our sustainability report
in accordance with AA1000AS standards, and our participation in the World Green Building Council’s MENA
net zero collaborators program, demonstrating our dedication to creating a sustainable future.
Looking ahead, we remain focused on developing and building experiences that positively impact our clients’
everyday lives, beyond just products and services. We recognize that our employees are the backbone of
our organization and we are committed to investing in their growth and development, enabling them to
provide exceptional service to our customers. We are excited to continue on this journey of growth and
success, and remain dedicated to delivering exceptional value to our customers, shareholders, and the
wider community.”
96% Operating profit growth
28.4% Return on equity
30.2% Cost income ratio
Management Discussion & Analysis Report | 4Q1 2023 Financial Highlights
Q1 2023 Financial Highlights Quarterly Trend
Q1 Δ% Q1 Q4 Q1 Δ%
Income statement (AED mn) 2023 2022 YoY 2023 2022 2022 QoQ YoY
Net Interest Income & Income
1,746 828 111.0 1,746 1,482 828 17.8 111.0
from Islamic Financing
Fee and commision 583 356 63.7 583 407 356 43.4 63.7
Investment Income 18 18 3.4 18 65 18 (71.7) 3.4
Insurance, FX & Other Income 172 302 (43.0) 172 199 302 (13.5) (43.0)
Total Operating Income 2,520 1,504 67.6 2,520 2,153 1,504 17.0 67.6
Operating Expenses (761) (606) 25.6 (761) (902) (606) (15.7) 25.6
Operating Profit 1,759 898 95.9 1,759 1,251 898 40.6 95.9
Impairment Allowance (96) (228) (57.9) (96) (3) (228) 2,704.8 (57.9)
Tax Expense (28) (30) (5.1) (28) (105) (30) (73.0) (5.1)
Non-Controlling Interest (24) (27) (10.7) (24) (16) (27) 49.1 (10.7)
Net Profit for the Period 1,610 612 163.0 1,610 1,126 612 43.0 163.0
EPS [AED] 8.03 3.05 163.0 8.03 5.61 3.05 43.0 163.0
Mar Mar Δ% Mar Dec Mar Δ%
Balance Sheet (AED mn) 2023 2022 YoY 2023 2022 2022 YTD YoY
Total Assets 201,233 182,581 10.2 201,233 197,245 182,581 2.0 10.2
Loans and Advances 91,109 86,295 5.6 91,109 90,303 86,295 0.9 5.6
Customer Deposits 120,162 104,228 15.3 120,162 113,806 104,228 5.6 15.3
Shareholder’s Funds* 23,314 20,369 14.5 23,314 23,599 20,369 (1.2) 14.5
Mar Mar Δ bps Mar Dec Mar Δ bps
Key Ratios (%) 2023 2022 YoY 2023 2022 2022 YTD YoY
CAR (Capital Adequacy ratio) 17.43 14.00 342 17.43 16.02 14.00 141 342
Tier 1 Ratio 15.09 12.86 223 15.09 13.71 12.86 138 223
Loan-to-Deposits 75.82 82.79 (697) 75.82 79.35 82.79 (353) (697)
Return-on Assets** 3.36 1.48 188 3.36 2.10 1.48 126 188
Return-on-Equity** 28.39 12.06 1,633 28.39 17.54 12.06 1,085 1,633
* Equity attributable to owners of parent including noteholders of the Group
** Annualized
Management Discussion & Analysis Report | 5Exhibits
+67.6%
2,520
Operating Income (AED Mn)
1,504
Q1 2022 Q1 2023
Loans (AED Mn) Deposits (AED Mn)
+0.9% +5.6%
90,303 91,109 120,162
113,806
Dec’22 Mar’ 23 Dec’22 Mar’ 23
Capital adequacy ratio (%) Tier 1 ratio (%)
17.4
16.0 15.1
15.2 14.0
13.7
14.0 12.9
13.6 12.4
Mar’ 22 Jun’ 22 Sep’ 22 Dec’ 22 Mar’ 23 Mar’ 22 Jun’ 22 Sep’ 22 Dec’ 22 Mar’ 23
Coverage ratio (RHS %) NPL ratio (LHS %)
%
8 131.6 132.1 231.2 250
149.7 190.8
4.6 4.6 200
6
3.6
150
2.2
4 1.9 100
2 50
0 0
Mar’ 22 Jun’ 22 Sep’ 22 Dec’22 Mar’ 23
Management Discussion & Analysis Report | 6Q1 2023 Awards
Forbes Regions Most Valuable The Economic Times
Banks 2023 list
Best Organization for Women 2023 -
Mashreq is among the Top 50 most valuable
Mashreq Global Network, India
banks in the MENA region
Award by Visa
Euromoney Trade Finance 2023
Best Client Experience’ for achieving the
Market Leader in the UAE
highest transaction approval rates in the UAE
for the year of 2022.
Best Service in Bahrain
Best Service in Bangladesh
Best Service in Kuwait Bonds, Loans & ESG Capital Markets
Africa Award
Best Service in Qatar Financial Institutions Debt House of the Year
Best Service – Products – Africa
Best Service - Industrial Goods – in Middle East
2023 Middle East & North Africa
Stevie® Awards
Best Service - Retail Providers – in Middle East
Gold Stevie Trophy for Innovation
Best Service – Products – In Egypt
Management in the Financial Industries
MENA Banking Excellence Awards 2023
Best Private Bank – UAE
Management Discussion & Analysis Report | 7For media enquiries, please contact:
Rana AlBorno
Public Relations, Mashreq
Tel: +971 4 6083629
Email: RanaAlB@mashreq.com
For investor relations enquiries, please contact:
Ali Zaigham Agha
Investor Relations, Mashreq
Tel: 04 2077543
Email: AliAgha@mashreq.com
Management Discussion & Analysis Report | 8 | positive |
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Press Release
Drake & Scull International Announces Q3 2023 Financial Results
Dubai, UAE, 9 November 2023: Drake & Scull International PJSC (DSI), a regional market leader in
integrated design, engineering, and development in the (MEP), Water and Power and Oil and Gas sectors
released today its reviewed financial results for the Q3 ended 30 September 2023 reporting a Gross Profit of
AED 7 million compared to AED 4 million for the same period in 2022.
• Revenue achieved was AED 64 million compared to the same amount during the same period in 2022.
• Loss from continued operations was AED 195 million compared to a loss of AED 158 million
during the same period in 2022.
• Reduction in general and administrative expenses to AED 23 million compared to AED 39 million
during the same period in 2022, equivalent to 40%.
• Accumulated Losses increased to AED 5,296 million compared to accumulated losses of AED 5,098
million as at 31 December 2022.
• Total Negative Equity increased to AED 4,261million compared to total negative equity of AED 4,083
million as at 31 December 2022.
• The major reasons behind the loss were the net financing cost, bond encashment and commercial
cases that will be adjusted upon successful completion of the restructuring process.
DSI order backlog is AED 464 million driven by ongoing operations in the UAE and overseas countries..10
Drake & Scull
,111111
Commenting on the announcement, Eng. Shafiq Abdelhamid, Chairman of DSI PJSC, said
“According to what was announced on 1st of November 2023, and where the Court of Appeal had previously
approved the agreed-upon restructuring plan, which was approved by the majority of creditors, the remaining
procedures will be completed in accordance with what was stated in the Court’s ruling and the approved
restructuring plan.”
Based on the ruling issued by the esteemed court approving the restructuring plan and upon completing all
its conditions, the Company will cooperate with the Securities and Commodities Authority and the Dubai
Financial Market to return its shares to trading as soon as possible, in addition to working on raising the
Company’s capital in accordance with the restructuring plan during the first quarter of 2024.”
On behalf of the board of directors, I would like to extend our gratitude and appreciation to our shareholders
for their patience during the previous period, and will continue to make all possible efforts to ensure that DSI
PJSC shares will resume trading on the Dubai Financial Market after the completion of the restructuring”.
-Ends-
About Drake & Scull International PJSC
Drake & Scull International PJSC (DSI) is a regional market leader in world-class Integrated Design,
Engineering, and Construction projects. DSI‘s main business streams include Engineering (MEP),
Construction, District cooling plants, Oil & Gas, and Water & Wastewater Treatment plants. The company
operates across the GCC & rest of the Middle East as well as Europe. DSI has completed more than 700
projects around the world in the Residential and mixed-use real estate, Aviation, Power plants, District cooling
plants, Hospitality, Healthcare, Renewable energy, Data center, Petrochemical, Rail, Commercial,
Government, Leisure and Infrastructure sectors. | positive |
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holdings
John Sunil, Chief Executive Officer of Burjeel Holdings, said:
"Burjeel Holdings delivered another strong set of results during the third quarter of 2023, as we focused on
executing our strategy to drive patient yields through the provision of highly specialized complex care
delivered by world-class medical professionals as we further ramped up our growth assets. This enabled
us to accelerate our growth trajectory with Group revenue increasing 23.8% and EBITDA growing by an
impressive 34.1% in the third quarter of 2023, driven by both an increase in patient footfall and the
expansion of our complex care offering.
“Our international expansion continues at pace with the opening of our first four PhysioTherabia centers in
Saudi Arabia. With ambitious growth plans to open 60 centers by 2025, PhysioTherabia marks the first step
of our KSA journey. We continue to explore various additional CAPEX efficient options in Riyadh to tap into
the huge potential that Saudi Arabia’s healthcare market represents. We are confident that the Kingdom
will significantly drive our long-term growth story.
“Looking ahead, Burjeel will continue solidifying its position as the region’s leading referral hub for complex
and innovative medical care by expanding the breadth of our offering and investing in technology to deliver
seamless patient journeys with superior clinical outcomes.”
Revenue Growth Accelerates
Burjeel Holdings delivered robust revenue growth of 17.2% to AED 3.3 billion for the first nine months
of 2023, driven by a 10.6% increase in total patient footfall to 4.4 million patients. Revenue growth
accelerated during the third quarter of 2023, delivering an increase of 23.8% to AED 1.2 billion due to the
rising volume of complex medical procedures. Group bed occupancy is at 60% for the nine months of 2023.
Thus, Burjeel has enough room within the invested infrastructure to grow organically without any further
investment, with significant headroom remaining to ramp up critical growth assets further.
EBITDA for the nine months of 2023 increased by 19.5% to AED 727 million, with EBITDA margin
expanding to 21.9%, as the Group focused on providing higher-yielding services. EBITDA for the third
quarter of 2023 grew substantially by 34.1% to AED 260 million.
Net profit for the nine months of 2023 rose 76.4% to AED 362 million, enabled by revenue growth,
increased operational efficiencies and lower finance costs. Net profit increased by 162.6% to AED 137
million during the third quarter of 2023. As previously indicated, when the growth assets start performing,
incremental revenue can be generated with marginal impact on cost, leading to significant bottom-line
growth.
Robust Performance Across Segments
The Hospitals segment remains the primary contributor to the Group's revenue, contributing 89% of total
Group revenue for the nine months of 2023, consistent with the previous year.
Revenue and EBITDA in the Hospital segment increased by 17.9% and 31.1%, respectively, during the
nine months of 2023, driven by higher patient footfall and the Group’s continued focus on advanced
specialty services. EBITDA margin in the Hospitals segment improved to 22.6% for the nine months of
2023. During the third quarter of 2023, Hospital segment revenue and EBITDA increased by 25.4% and
46.9%, respectively, and EBITDA margin enhanced to 23.2%.
The Medical Centers segment, which plays a significant role as the Group’s key referral source, delivered
revenue and EBITDA growth of 15.3% and 20.6%, respectively, for the first nine months of 2023, with
EBITDA margin increasing to 28.9%. During the third quarter of 2023, revenue and EBITDA increased by
18.2% and 14.5%, respectively, at a stable EBITDA margin of 30.5%.Complex Specialty Care Propels Burjeel Medical City (BMC) Performance
Burjeel's flagship hospital asset, BMC, delivered stellar performance, with revenue growth of 40.6% to
AED 737 million for the first nine months of 2023. EBITDA rose substantially, up 74.8% to AED 108 million
with EBITDA margin improving to 14.7% for the first nine months of 2023 compared to 11.8% for the first
nine months of 2022.
BMC’s outstanding growth was driven by a significant increase in patient volumes and the number of
high value complex procedures performed. Total patient footfall grew by 66.8% during the first nine months
of 2023, with bed occupancy reaching 46% for the first nine months of 2023 compared to 36% for the first
nine months of 2022.
BMC’s performance demonstrates its continued success as a critical referral hub providing cutting-edge
complex specialities. The Hospital still has significant utilization headroom, highlighting its potential to
contribute to Burjeel’s long-term value-creation plans.
Strong Balance Sheet Powering Growth
Cash Flow from Operating Activities increased by 64.0% during the nine months of 2023, driven by
EBITDA growth and optimization of working capital. Additionally, Free Cash Flow (FCF) Conversion1 grew
to 45%, up from 35% in the prior year.
The Group's Net Debt / Pre-IFRS 16 EBITDA decreased from 1.5x as of 31 December 2022 to 1.3x as of
30 September 2023. The strength of the group’s balance sheet provides adequate financial flexibility to
pursue growth opportunities going forward.
The Group’s share capital was AED 521 million as of 30 September 2023.
Positive Outlook Maintained
The UAE and KSA continue to experience favourable macro tailwinds, with strong predicted mid-term
GDP growth, rapid population growth and increasing demand for added healthcare capacity. Regional
aspiration to expand the non-oil-based economy will boost the demand with limited supply in a regulated
environment, strongly driving the Group's performance.
Burjeel Holdings continues to see strong demand for its differentiated specialty healthcare offering.
With state-of-the-art infrastructure consisting of several high-growth assets and an expansive referral
network, Burjeel remains in a solid position to deliver on its value-creation strategy of increasing patient
yield and utilization while unlocking strategic expansion opportunities. The Group continues to invest in
deploying technology to provide a seamless patient journey and drive clinical efficiency.
Dividend Policy
Burjeel is keen to deliver value to its stakeholders, proven by the payment of interim cash dividends
with an expected future pay-out ratio of 40% to 70% of net profit, contingent on investment requirements
for additional growth plans. For the first half of 2023, the Group paid ~AED 95 million or ~AED 0.02 per
ordinary share as its debut interim dividend. This represents 42% of net profit for the first half of 2023.
(1) FCF = EBITDA – Maintenance Capex – Change in Working Capital. Working Capital = Inventory + Receivables – Payables (including accruals).
Change in Working Capital calculated as working capital balance in prior period less working capital balance in current period. FCF conversion = Free
cash flow / EBITDA.FY2023 Guidance
Group revenue expected to EBITDA margin expected Maintenance CAPEX expected Net Debt/EBITDA2
grow in the high-teens to improve to at least to be approximately 2.5% of of less than 2.5x to
2021 levels (c.23%) revenue be maintained
BMC revenue expected to
grow more than 50% BMC EBITDA margin Growth CAPEX of ~AED 85m
expected to improve to for digital transformation and
the mid-high teens UAE & KSA expansion
Mid-Term (2024-2027) Guidance
Group revenue growth Group EBITDA margin to Maintenance CAPEX expected Net Debt/EBITDA2
expected to normalize from gradually expand to to be approximately 2.5% of of less than 2.5x to
the mid-teens to the high- high-20s revenue be maintained
single-digit gradually
Driven by ramp-up of Growth CAPEX of ~AED 215m
BMC to continue to ramp up growth assets, asset-light for digital transformation and
to reach beyond AED 2bn international expansion, UAE & KSA expansion
revenue p.a. as well as focus on
increasing patient yield
KSA expansion project to and operational
reach beyond AED 600m excellence
revenue p.a.
----------------------
Financial Review
(Q3’23 = Three-month period to 30 September 2023)
(9M’23 = Nine-month period to 30 September 2023)
AED millions Q3’23 Q3’22 Change 9M’23 9M’22 Change
Revenue 1,155 933 23.8% 3,317 2,832 17.2%
Total OPEX ex. D&A3 (899) (743) 20.9% (2,607) (2,238) 16.5%
EBITDA4 260 194 34.1% 727 608 19.5%
EBITDA Margin % 22.5% 20.8% 1.7pp 21.9% 21.5% 0.4pp
Net Profit for the Period 137 52 162.6% 362 205 76.4%
Net Profit Margin % 11.9% 5.6% 6.3pp 10.9% 7.2% 3.7pp
-----Ends-----
Conference call information
Date: Tuesday, 31 October 2023
(2) Calculated using pre-IFRS 16 EBITDA as EBITDA less Annual Lease Rental.
(3) Total OPEX ex. D&A – refers to Total Operating expenses excluding all Depreciation and Amortisation expenses.
(4) EBITDA includes Share of profit from associates.Time: 4:00 pm Gulf Standard Time (GST)
Please find the details of the conference call below.
Webcast Link
United Arab Emirates: 800 0320690
United Kingdom: +44 203 984 9844
United States: +1 718 866 4614
Global Dial-In Numbers
Access Code: 305568
----------------------
About Burjeel Holdings
Founded in 2007, Burjeel Holdings is one of the leading private healthcare services providers in the MENA
region. With a network of 68 assets, including 16 hospitals and 30 medical centers, as well as pharmacies
and other allied services, the group provides the highest standard of patient care in the region. Burjeel
Holdings’ brands include Burjeel Hospitals, Medeor Hospitals, LLH Hospitals, Lifecare Hospitals, and
Tajmeel. It has 12 JCI-accredited facilities, with a total 1,708 patient beds across its operations in the UAE
and Oman, and holds a leading position in the UAE. The Group has comprehensive cancer care facilities
in the UAE and is the country’s leading mother and childcare provider.
Contacts
Media: Investor Relations:
Stephen Smith Sergei Levitskii
Senior Vice President – Teneo Head of Investor Relations – Burjeel Holdings
burjeelholdings@teneo.com ir@burjeelholdings.com
M: +971 58 546 1588 M: +971 50 380 2383 | positive |
Dana Gas reports AED 407 million ($111 mm) Net
Profit in H1 2022
Highlights – H1 2022
▪ Net profit increased 82% to AED 407 million ($111mm) on a like for like basis
▪ Revenue increased 31% to AED 1,041 million ($284mm)
▪ 16% decrease in operating costs
Sharjah, UAE; 11 August 2022: Dana Gas PJSC (the “Company”), the Middle East’s largest
regional private sector natural gas company, today announced its financial results for the half
year ended 30 June 2022.
In the first six months of the year, the Company generated a net profit of AED 407 million
($111mm) or 5.8 fils per share, an 82% increase compared to an adjusted net profit (excluding
reversal of impairment) of AED 225 million ($61mm) in H 1 2021.
The gains in Dana Gas’s profitability in the first half were driven by elevated hydrocarbon prices,
the Company’s continued commitment to maintaining a low-cost base and strong operational
performance in the Kurdistan Region of Iraq (KRI).
The Company’s revenue for the first six months of the year increased 31% to AED 1,041 million
($284mm) as compared to AED 792 million ($216mm) in H1 2021 and its operating costs
dropped 16%. The Company’s realized prices during the first half of the year averaged $87/bbl
for condensate and $44/boe for LPG compared to $48/bbl and $32/boe respectively in H1 2021.
Despite the challenging security situation, the Company’s current operations in the KRI have
continued uninterrupted. Production from the KRI increased 1% in the first half and the KM250
expansion project has progressed well. During the first half, drilling of the project’s first
development well was completed, and drilling operations for the second well are currently in
progress. Whilst EPC construction work on KM 250 was suspended in June amid heightened
security concerns, the Company is working with the authorities to address security concerns and
to resume construction.
Given the strong operational and financial performance the Board expects to maintain its semi-
annual dividend payment in keeping with the Company’s dividend policy. The interim dividend
will be decided by the Board at its meeting in September.
Dr Patrick Allman-Ward, CEO of Dana Gas, commented:
“Dana Gas delivered strong half year results, supported by our robust operational performance,
low cost base and favourable energy market conditions. Despite an increased uncertainty around
the global economy amid high inflation, the outlook for the remainder of 2022 is still encouraging
with both energy prices and demand remaining high.”
1Operations & Production
The Group’s overall production in H1 2022 was 61,100 boepd, a 5% reduction from 64,000 boepd
in H1 2021. This was due to a 9% production drop in Egypt mainly as a result of natural field
decline. Production output in the KRI increased by 1%, with production averaging 34,500 boepd
in H1 2022 versus 34,300 in H1 2021.
Operations have continued as normal during the period. Heightened uncertainty in the region and
subsequent precautionary security measures have impacted the Khor Mor expansion project. As
a result, the KM250 project remains on temporary suspension. The Company and its partners are
working closely with the KRG to address all concerns and all parties remain committed to
implementing the expansion project and resume construction activities as soon as possible.
Liquidity and Collections
The Company’s cash position at the end of H1 2022 stands AED 759 million ($207mm) including
AED 436 million ($119mm) held at the Pearl level.
The Group collected a total of AED 660 million ($180 mm) during the H1 2022, with the KRI and
Egypt contributing AED 495 million ($135mm) and AED 165 million ($45mm) respectively.
---Ends---
About Dana Gas
Dana Gas is the Middle East's first and largest regional private sector natural gas Company established in
December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and
production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion
boe and average production of 62,100boepd in 2021. With sizeable assets in KRI and Egypt, and further
plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the
Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen
Head of Investor Relations
Investor.relations@danagas.com
2 | neutral |
Dubai, UAE / Cairo, Egypt / 30 August 2023
RESULTS ANNOUNCEMENT
H1 2023
ORASCOM CONSTRUCTION REPORTS
BACKLOG OF USD 5.5 BILLION AND REVENUE
OF USD 1.6 BILLION IN H1 2023
HIGHLIGHTS
• Revenue of USD 1,563.5 million, consolidated EBITDA of USD 150.7 million and net income attributable to shareholders
of USD 98.7 million in H1 2023
• Net cash position of USD 163.1 million as of 30 June 2023
• Consolidated backlog of USD 5.5 billion and pro forma backlog including 50% share in BESIX of USD 8.5 billion as of
30 June 2023
• Consolidated new awards of USD 1.6 billion and pro forma new awards including 50% share in BESIX of USD 2.6 billion
in H1 2023
• BESIX reports a standalone backlog of EUR 5.5 billion and new awards of EUR 1.8 billion in H1 2023
• Divested two non-strategic building materials subsidiaries for EGP 2.2 billion in May and June
• Successfully completed a share buyback of 5.6% in June
STATEMENT FROM THE CEO
We continue to create value for shareholders and focus on our long-term strategy.
We recently divested two of our non-strategic building materials subsidiaries in May and June. These transactions align with our approach
to unlock value across our matured assets for allocation to growth and value accretive areas.
Furthermore, as part of our commitment to effective capital allocation and long-term shareholder returns, we completed a share buyback of
5.6% in June.
We also continue to make tangible progress on our investments in the wind energy sector. Construction at the new 500 MW build-own-
operate wind farm in Egypt is well underway and ahead of schedule. This project is seeing us leverage our key experience as a first mover
in renewable energy in Egypt, as we combine the highest levels of execution, health and safety, and collaboration with world class partners
and international financial institutions to deliver sustainable energy to over 800,000 Egyptian homes.
This project also exemplifies our growing concessions portfolio under development, which now encompasses several key sectors including
water, renewable energy, and hydrogen in three different countries, Egypt, UAE, and Saudi Arabia.
On our EPC business, we added USD 735.7 million of new awards during the quarter and maintained our backlog at a consistent level
of USD 5.5 billion. The U.S. accounted for 60% of new awards in Q2 2023, while a sizable portion of the Group’s backlog in Egypt is
denominated in foreign currency and financed by international institutions.
BESIX reported improved profitability in Q2 and H1 2023, and increased backlog of 13.0% y-o-y to EUR 5.5 billion. We also received a
dividend of EUR 10 million from BESIX for our 50% share during the quarter.
OSAMA BISHAIDubai, UAE / Cairo, Egypt / 30 August 2023
RESULTS ANNOUNCEMENT
H1 2023
CONSOLIDATED BACKLOG
USD million H1 2023 H1 2022 Change Q2 2023 Q2 2022 Change
Equity consolidation
Backlog 5,512.2 6,474.7 (14.9)%
New awards 1,594.1 2,380.2 (33.0)% 735.7 1,762.7 (58.3)%
Pro forma inc. 50% of BESIX
Backlog 8,534.3 9,025.1 (5.4)%
New awards 2,552.2 3,202.7 (20.3)% 1,133.3 2,156.1 (47.4)%
Consolidated backlog excluding BESIX decreased 14.9% y-o-y and increased 1.0% q-o-q Backlog by Segment − Equity
to USD 5.5 billion as of 30 June 2023. Consolidated new awards decreased 58.3% y-o-y
Consolidation
to USD 735.7 million in Q2 2023 and 33.0% y-o-y to USD 1.6 billion in H1 2023. The y-o-y
decline in new awards in Q2 and H1 2023 is due to the above-average level of new awards
Backlog by geography
achieved in Q2 2022, during which the large high-speed rail contract was signed.
Including the Group’s 50% share in BESIX, pro forma backlog decreased 5.4% y-o-y to
USD 8.5 billion as of 30 June 2023. Pro forma new awards decreased 47.4% y-o-y to
USD 1.1 billion in Q2 2023 and 20.3% y-o-y to USD 2.6 billion in H1 2023. Egypt 67.9%
USA 26.9%
MEA Saudi Arabia 1.8%
The Group signed USD 751.0 million of new awards in Egypt during H1 2023, of which
Other MEA 3.4%
USD 293.3 million were added in Q2 2023.
New awards signed during the quarter spanned the transportation, industrial and
infrastructure sectors, and complement projects added in Q1 across renewable energy
and premium private sector real estate. Backlog by sector
USA
The U.S. subsidiaries signed USD 843.1 million of new awards in H1 2023, of which
USD 442.4 million were added in Q2 2023.
Infrastructure 63.8%
The new awards momentum established in Q1 2023 was maintained, as the Group signed Commercial 22.2%
additional work across its core data center, commercial and light industrial sectors. Industrial 14.0%
BESIX Group
BESIX’s standalone backlog stood at EUR 5.5 billion as of 30 June 2023, reflecting an
increase of 13.0% y-o-y. New awards totaled EUR 728.9 million in Q2 2023, increasing
total new awards in H1 2023 15% y-o-y to EUR 1.8 billion. Backlog by client
Public 75.2%
Private 24.8%Dubai, UAE / Cairo, Egypt / 30 August 2023
RESULTS ANNOUNCEMENT
H1 2023
SUMMARY FINANCIAL RESULTS
Summary Income Statement
USD million H1 2023 H1 2022 Change Q2 2023 Q2 2022 Change
Revenue 1,563.5 1,914.6 (18.3)% 758.6 934.9 (18.9)%
MEA 901.7 1,376.6 (34.5)% 453.7 635.4 (28.6)%
USA 661.8 538.0 23.0% 304.9 299.5 1.8%
EBITDA 150.7 92.9 62.2% 115.3 42.6 170.7%
MEA 137.9 87.3 57.9% 109.1 38.9 180.5%
USA 12.8 5.6 128.8% 6.2 3.7 67.6%
EBITDA margin 9.6% 4.9% 15.2% 4.6%
MEA margin 15.3% 6.3% 24.0% 6.1%
USA margin 1.9% 1.0% 2.0% 1.2%
Net income attributable to shareholders 98.7 33.9 191.2% 62.6 20.8 201.0%
MEA 82.9 36.3 128.3% 50.5 14.0 260.7%
USA 9.4 4.1 130.5% 5.6 2.3 143.5%
BESIX 6.4 (6.5) 6.5 4.5 44.4%
Net income margin 6.3% 1.8% 8.3% 2.2%
MEA margin 9.2% 2.6% 11.1% 2.2%
USA margin 1.4% 0.8% 1.8% 0.8%
Net Debt (cash) Net income attributable to shareholders Building Materials, O&M and Equipment
increased 201.0% y-o-y to USD 62.6 million in Services
USD million 30 Jun 23 31 Dec 22 Change Q2 2023 and 191.2% y-o-y to USD 98.7 million Net income in H1 2023 from the Group’s
in H1 2023. Net income in Q2 2023 benefitted investments and subsidiaries in building
Cash and cash
from the divestment of two building material materials, operation and maintenance (O&M) and
equivalents 430.9 537.7 (19.9)%
subsidiaries, and from foreign exchange gains equipment services stood at USD 11.3 million,
Total debt 267.8 212.0 26.3%
due to the Group’s favorable currency net asset accounting for 11% of total net income. This
Total equity 681.8 691.3 (1.4)% position in Egypt. figure excludes net income contribution from and
Net debt (cash) (163.1) (325.7) Excluding total one-off items, net income stood capital gain related to the two building materials
entities divested in May and June 2023. The total
at USD 20.8 million in Q2 2023 and USD 56.9
Consolidated revenue decreased 18.9% y-o-y to gross value of the two transactions amounted to
million in H1 2023.
USD 758.6 million in Q2 2023 and 18.3% y-o-y EGP 2.2 billion.
to USD 1,563.5 million in H1 2023. The MEA The Group’s net cash position stood at
The Group’s current activities in this segment
operations comprised 60% and 58% of total USD 163.1 million as of 30 June 2023. This
include steel fabrication, aluminum and glass
revenue in Q2 2023 and H1 2023, respectively, compares to net cash positions of USD 104.3
façade systems, facility management, O&M, and
while the USA operations accounted for the million as of 30 June 2022, USD 159.1 million
equipment services.
balance. as of 31 March 2023 and USD 325.7 million as
of 31 December 2022. Total equity decreased Health and Safety
Consolidated EBITDA increased 170.7%
1.4% y-o-y and increased 3.9% q-o-q to USD The Group extended its safety record in H1 2023.
y-o-y to USD 115.3 million in Q2 2023 and
679.6 million as of 30 June 2023. The lost time injury (LTI) rate in the Middle East
62.2% y-o-y to USD 150.7 million in H1 2023.
and Africa stood at 0.01 with manhours of 86
Consolidated EBITDA margins stood at 15.2% Concessions
million, and in USA stood at 0.00 with manhours
in Q2 2023 and 9.6% in H1 2023. The Group’s Construction on the new 500 MW BOO wind
of 1.5 million.
performance in the U.S. continued to improve, farm is ahead of schedule, where the pouring of
with EBITDA in the U.S. increasing 1.7x y-o-y in the foundations of the wind turbine generators Notable health and safety achievements include
Q2 2023 and 2.3x y-o-y in H1 2023. is already underway. In addition, the Dammam 10 million manhours at a new private commercial
West Independent Sewage Treatment Plant project in Egypt and 5.8 million manhours without
Excluding total one-off items (all of which are
BOOT project is expected to commence LTI at data center projects since inception in USA.
attributable to the MEA region), EBITDA stood
operations in Q4 2023.
at USD 22.4 million in Q2 2023 and USD 57.8 Share Buyback
million in H1 2023. The Group also signed in May a new contract On June 5, the Company purchased 6,517,444
to develop, own and operate a large-scale of its own shares, representing 5.58% of the
Including the Group’s 50% share in BESIX,
seawater treatment and water transportation Company’s total issued shares, for USD 3.0 per
pro forma EBITDA increased 69.6% y-o-y to
project in Abu Dhabi, UAE for ADNOC. share. This share buyback was executed on
USD 176.1 million in H1 2023. Net income
contribution from BESIX increased 44.4% y-o-y These projects complement the Group’s current Nasdaq Dubai. The Company will cancel these
to USD 6.5 million in Q2 2023, bringing total net operational concessions: the 262.5 MW BOO shares in September and is holding these shares
income contribution from BESIX in H1 2023 to wind farm and the 250,000 m3/day BOOT as treasury shares until such cancellation occurs.
USD 6.4 million. wastewater treatment plant in Egypt.Dubai, UAE / Cairo, Egypt / 30 August 2023
RESULTS ANNOUNCEMENT
H1 2023
ABOUT ORASCOM CONSTRUCTION PLC
Orascom Construction PLC is a leading global engineering and construction contractor primarily focused on infrastructure, industrial and
high-end commercial projects in the Middle East, Africa, and the United States. Orascom Construction also develops, operates and invests
in concessions, owns 50% of BESIX Group, and holds a building materials, facility management and equipment services portfolio. The
Group has consistently ranked among the world’s top contractors and is dual listed in the UAE and Egypt.
For more information,please visit www.orascom.com.
CONTACT INVESTOR RELATIONS
Hesham El Halaby
Director
hesham.elhalaby@orascom.com
ir@orascom.com
+971 4 318 0900
NASDAQ Dubai: OC
EGX: ORAS
orascom.com
IMPORTANT NOTICE AND DISCLAIMER
This document has been provided to you for information purposes only. This document does not constitute an offer of, or an invitation to
invest or deal in, the securities of Orascom Construction PLC (the “Company”). The information set out in this document shall not form
the basis of any contract and should not be relied upon in relation to any contract or commitment. The issue of this document shall not be
taken as any form of commitment on the part of the Company to proceed with any negotiation or transaction.
Certain statements contained in this document constitute forward-looking statements relating to the Company, its business, markets,
industry, financial condition, results of operations, business strategies, operating efficiencies, competitive position, growth opportunities,
plans and objectives of management and other matters. These statements are generally identified by words such as “believe”, “expect”,
“plan”, “seek”, “continue”, “anticipate”, “intend”, “estimate”, “forecast”, “project”, “will”, “may” “should” and similar expressions. These
forward-looking statements are not guarantees of future performance. Rather, they are based on current plans, views, estimates,
assumptions and projections and involve known and unknown risks, uncertainties and other factors, many of which are outside of the
Company’s control and are difficult to predict, that may cause actual results, performance or developments to differ materially from any
future results, performance or developments expressed or implied from the forward-looking statements.
The Company does not make any representation or warranty as to the accuracy of the assumptions underlying any of the statements
contained herein. The information contained herein is expressed as of the date hereof and may be subject to change. Neither the Company
nor any of its controlling shareholders, directors or executive officers or anyone else has any duty or obligation to supplement, amend,
update or revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or
otherwise, except as required by applicable laws and regulations or by any appropriate regulatory authority.
Backlog and new awards are non-IFRS metrics based on management’s estimates of awarded, signed and ongoing contracts which
have not yet been completed, and serves as an indication of total size of contracts to be executed. These figures and classifications are
unaudited, have not been verified by a third party, and are based solely on management’s estimates. | neutral |
Salik Company PJSC Achieves Q3 2022 Net Profit of AED 242 million
•
Revenue increases 15.8% YoY during the first nine months of 2022, reflecting strong growth
in traffic in Dubai
•
Q3 revenue increases 9.1% YoY to AED 445 million with travel activity fast-approaching pre-
Covid level
•
Q3 EBITDA and margin stood at a robust AED 291 mn and 65.4%, respectively
•
Net profit reaches AED 242 mn translating to AED 0.03 per share in Q3
•
Solid cash generation with Q3 free cash flow reaching AED 315 million, yielding a margin of
70.6%
•
Appointments made in key departments and divisions, including the Chief Technology
Officer and Support Services Director
•
Toll gate rebranding complete; currently each of Salik’s eight gates showcases the new
brand identity
Dubai, UAE – 10 November 2022: During its meeting presided by His Excellency Mattar Al Tayer,
Chairman of the Board, the Board of Directors of Salik Company PJSC (“Salik” or the “Company”)
approved Salik’s condensed interim financial results for the three-month and nine-month periods
ended 30 September 2022, the first set of financial results for Salik, Dubai’s exclusive toll gate
operator, as a standalone entity following its admission to the Dubai Financial Market.
Salik achieved net profit of AED 242 million in Q3 2022 (AED 0.03 per share). Revenue increased 9.1%
year-on-year (YoY) to AED 445 million on the back of solid operational performance reflecting
positive economic activity and growth in traffic, while EBITDA reached AED 291 million, yielding a
strong margin of 65.4%.
His Excellency Mattar Al Tayer, Chairman of the Board of Directors of Salik, expressed his
pleasure with the robust set of results achieved by Salik over the last quarter. He further highlighted:
“the results were reflective of the Company’s strength as Dubai’s exclusive road toll operator. Salik’s
strong business model positions it at the heart of the roads and transport sector’s expansion plans
in Dubai.”
His Excellency added: “The outlook is positive as we stand in a pole position to benefit from Dubai’s
ambitious expansion plans and Salik’s growth initiatives. We have full confidence in Salik’s ability to
deliver great value over the long term to all our shareholders.”
Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, commented:
“I am delighted to share with you our first set of results, both as a standalone legal entity and as a
DFM-listed company. Salik closed Q3 2022 with a strong financial performance that showcases our
robust business model as the exclusive operator of the Emirate of Dubai’s eight toll gates. This is
demonstrated by our robust revenue and net profit, which reached AED 445 million and AED 242
million respectively, reflecting our strong operational performance during the quarter.”
Al Haddad added: “During Q3 2022, we successfully completed our initial public offering on
September 29 and began an exciting journey with our new shareholders as a DFM-listed company.The overwhelming IPO demand with 49 times oversubscription is testament to the fundamentals
underpinning Dubai’s capital markets, as well as Salik’s strong investment case.”
He further commented: “We recently welcomed our Chief Technology Officer and Support Services
Director, both of whom are nationals who bring significant experience in their fields to the company
and its growth story.”
Traffic Highlights
Q3 revenue-generating trips rise 10% YoY to c. 97 mn reflecting positive economic activity in
Dubai during this period; traffic level in Q3 stood just 5% below pre-pandemic levels
The total number of trips made through Salik’s eight toll gates increased c. 11% YoY to c. 128 million
in Q3 2022 from c. 116 million a year earlier. Revenue-generating trips, in turn, increased in step with
the growth in total trips, reaching c. 97 million trips in Q3.
Revenue-generating trips for Q3 2022 were c. 3% lower quarter-on-quarter (QoQ) due to seasonality,
as activity tends to slow down during the third quarter due to summer holidays, before picking up in
Q4.
In the first nine months of 2022, total trips grew c. 15% YoY reaching c. 395 million trips, compared
to c. 343 million trips a year earlier, driven by rapid recovery from the impact of the Covid-19
pandemic, as well as the positive growth resulting from Expo 2020. Revenue-generating trips, in turn,
increased c. 16% to c. 302 million trips from c. 260 million in the first nine months of 2021.
Million 9M 2021 9M 2022 % Δ YoY Q3 2021 Q3 2022 % Δ YoY
Total trips (1) 343.0 394.8 15.1% 115.8 128.0 10.6%
Discounted trips (2) 80.2 88.3 10.1% 27.0 30.1 11.4%
as a % of total trips 23.4% 22.4% -1.0% 23.3% 23.5% 0.2%
Net toll traffic (3) 262.8 306.6 16.6% 88.8 97.9 10.3%
as a % of total trips 76.6% 77.6% 1.0% 76.7% 76.5% -0.2%
Revenue-generating trips (4) 260.0 302.0 16.1% 87.9 96.6 9.9%
as a % of net toll traffic 98.9% 98.5% -0.4% 99.0% 98.7% -0.4%
(1) Total vehicle trips through Salik toll gates
(2) Discounted trips include taxis without passengers, Al Mamzar and Al Maktoum gates free time and discounts, vehicles exempted by law, and multiple violations
and other. Multiple violations refer to drivers that repeatedly drive through the toll gates without paying in 24 hours. In this case, the fine is paid only once
(3) Net toll traffic is total trips minus discounted trips
(4) Revenue-generating trips is net toll traffic minus fines & penalties and unreconciled trips. Revenue-Generating Trips is the driver for Salik's toll usage fees
revenue, which account for the majority of Salik's revenue
Registered vehicles increase 0.7% YoY
The number of vehicles registered with Salik increased 0.7% YoY to c. 3.65 million as of 30
September 2022, from c. 3.63 million a year earlier.
The number of electric vehicles with free-issue tags registered with Salik reached 1,866 as of 30
September 2022, increasing from 1,566 on 30 June and 994 a year earlier.Financial Highlights
Note on the financial statements:
Prior to July 2022, Salik, previously as part of the Roads and Transport Authority, was not operating as a
standalone legal entity and its financial statements were prepared on a carve-out basis. Some of the cost
elements recorded prior to Q3 2022 are no longer applicable, such as corporate allocation expense, while
others are now in place, such as concession fee expense, finance cost, rent expense, amortization
expense, and transitional service expense. Annual comparison of profitability, as a result, is not necessarily
indicative of business performance on a like-for-like basis. For further details, please refer to the notes to
the Company’s condensed interim financial statements.
Salik’s Q3 revenue grows c. 9% YoY, mostly led by solid traffic performance
In Q3 2022, Salik’s revenue increased 9.1% YoY to AED 445 million, primarily driven by the following:
•
Toll usage fees: strong growth in revenue-generating trips drove a 9.9% YoY growth in
revenue from toll usage fees, reaching AED 386 million from AED 352 million a year earlier.
Toll usage fees contributed 87% to total revenue in Q3.
•
Fines and penalties: revenue from fines and penalties increased 6.8% YoY to AED 49 million,
from AED 46 million a year earlier, in line with growth in traffic during the same period,
resulting in a c.12% growth in the number of violations (0.6 million in Q3 2022 from 0.5 million
a year earlier). The number of violations remained broadly unchanged as a fraction of net toll
traffic, and revenue from fines and penalties contributed 11% to total revenue.
•
Tag activation fees: despite a 14% YoY increase in Salik’s tag sales from AED 8.4 million in
Q3 2021 to AED 9.6 million in Q3 2022, Salik recorded revenue of AED 7.7 million in Q3 2022
from tag activation fees, a c. 16% YoY decrease from AED 9.2 million a year earlier, as
revenue from tag activation fees is recognized over the estimated customer life of 5 years,
and recognized revenue is affected by tag sales during the current financial period as well as
previous years. Tag activation fees contributed 2% to total revenue.
Solid operating performance yielding an EBITDA margin of 65.4% in Q3
Salik’s EBITDA for Q3 2022 reached AED 291 million, yielding a margin of 65.4%. Key cost elements
include:
•
Concession fee expense amounted to AED 97 million, which represented 25% of revenue
from toll usage fees, as per the concession agreement, and 21.7% of total revenue
•
Toll operations & maintenance expense amounted to AED 21 million, covering operation
and maintenance of the tolling system, account management, customer service, issuance of
violations, back-office support, maintaining and replacing equipment, and mobile application
maintenance
•
Cost of Salik tags and recharge cards reached AED 5 million, representing 63.3% of tag
activation fees, in line with the normal range of 60-65%
•
Impairment loss on receivables of AED 10 million, representing 19.6% of revenue from fines
and penalties, in line with the normal range of 18-22%
•
Other expenses reached AED 19 million, mainly including AED 9 million in commissions on
card and tag sales, and commissions for banks and other Emirates, which represented c. 2.0%
of total revenueSalik’s net earnings reach AED 242 million
The Company achieved net profit of AED 242 million in Q3 2022, with a net profit margin of 54.3%.
Salik recorded depreciation and amortization expense of AED 20 million, predominantly reflecting an
amortization expense related to Salik’s AED 4.0 billion upfront concession payment which was
recorded as an intangible on the Company’s balance sheet. The Company additionally recorded AED
29 million in finance costs related to its AED 4.2 billion credit facility agreement with Emirates NBD
Bank. During the quarter, Salik made an AED 200 million Islamic time deposit for a fixed term of two
months.
Summary of statement of profit or loss
AED million (1) 9M 2021 9M 2022 % Δ YoY Q3 2021 Q3 2022 % Δ YoY
Revenue 1,201 1,390 15.8% 408 445 9.1%
Toll usage fees
1,040 1,208 16.1% 352 386 9.9%
Fines and penalties
134 153 14.7% 46 49 6.8%
Tag activation fees
23 24 5.7% 9 8 -16.3%
Other revenue
4 5 17.9% 1 2 54.0%
EBITDA (2) 970 1,091 12.5% 333 291 -12.5%
EBITDA margin 80.8% 78.5% -2.3% 81.5% 65.4% -16.1%
Finance costs, net - (29) N/M - (29) N/M
Profit for the period 966 1,039 7.6% 331 242 -26.9%
No. of shares outstanding (million) 7,500 7,500 7,500 7,500
Earnings per share (AED) 0.13 0.14 7.6% 0.04 0.03 -26.9%
(1) Annual comparison of profitability is not necessarily indicative of business performance on a like-for-like basis. For further details, please refer to the notes to
the Company’s condensed interim financial statements.
(2) EBITDA is profit for the period, excluding the impact of net finance costs, depreciation, and amortization expenses
Efficient capital structure
The Company closed the quarter with a net debt of c. AED 3.5 billion, equivalent to a healthy
annualized Q3 2022 EBITDA of 3.0x. On 30 June 2022, Salik entered into an AED 4.2 billion credit
facility agreement with Emirates NBD Bank, including a revolving facility of AED 200 million, to make
the upfront concession payment, as well as for general corporate purposes.
Contract liabilities, which are balances paid in advance by customers relating to recharges and tag
activation fees, increased by 1.7% QoQ and 2.8% year-to-date, to AED 322 million, reflecting higher
recharges than actual usage during the period.
The Company recorded a negative net working capital balance of AED 124 million as of 30
September 2022, excluding VAT. Net working capital included:
•
Due from related parties of AED 141 million including receivables from the Roads and
Transport Authority (RTA) related to fines and penalties, and receivables from the Emirate of
Dubai’s E-Government related to payments made online by customers via ePay gateway, as
well as receivables from Dubai Taxi Corporation
•
Trade and other receivables of AED 154 million (excluding 5% VAT on the AED 4.0 billion
upfront concession fee), mostly comprising fines and penalties. Trade and other receivables
decreased from AED 198 million on 1 July 2022 due mostly to reclassification of fines and
penalties receivable from the RTA separately•
Due to a related party of AED 99 million (excluding 5% VAT on the AED 4.0 billion upfront
concession fee), reflecting concession fees and transitional service expenses recorded
during the quarter and payable to RTA
•
Trade and other payables of AED 46 million including AED 21 million in payables to the
operations & maintenance service provider as well as AED 20 million predominantly
comprising commissions
•
Current portion of contract liabilities of AED 281 million
Summary of financial position
30 Sep 31 Dec
1 Jul 2022 % Δ QoQ % Δ Ytd
2022 2021
Total assets 4,971 8,609 -42.3% 315 1476.5%
Total liabilities 4,654 8,550 -45.6% 325 1330.2%
Total equity 317 59 441.6% (10) N/M
Borrowings 3,985 4,002 -0.4% - N/M
Cash and cash equivalent 490 4,205 -88.4% - N/M
Net debt 3,495 (203) N/M - N/M
Contract liabilities (1) 322 317 1.7% 313 2.8%
Net working capital (2) (124) (104) 19.9% (78) 58.5%
Inventories 6 5 12.2% 16 -63.4%
Trade and other receivables (3) 154 198 -22.3% 192 -19.9%
Due from related parties 141 - N/M - N/M
Due to a related party (4) (99) - N/M - N/M
Trade and other payables (46) (30) 52.8% (9) 374.1%
Contract liabilities, current
(281) (277) 1.4% (277) 1.4%
portion
(1) Contract liabilities is the sum of current and non-current balances paid in advance by customers relating to recharges and too-ups and tag activation fees
(2) Net working capital is the balance of inventories plus trade and other receivables plus dues from related parties minus trade and other payables, minus due to
a related party minus current portion of contract liabilities
(3) Trade and other receivables exclude VAT receivable of 5% on the AED 4.0 upfront concession fee
(4) Due to a related party exclude payable of 5% of the AED 4.0 billion upfront concession fee, and additionally on 1 July 2022, it excludes the AED 4.0 billion
upfront fee
Solid cash generation with a Q3 2022 free cash flow of AED 315 million and FCF margin of 70.6%
Salik’s cash flow from operating activities reached AED 315 million in Q3 2022, thanks to the solid
traffic performance. Capital expenditures were minimal and amounted AED 3 million in the first nine
months of 2022, mostly related to assets that were retained under the RTA in the first six months of
the year and were not carried forward to Salik. Salik did not incur capital expenditures in Q3 2022 and
does not foresee to undertake any major capital expenditures for 2022.
Free cash flow reached AED 315 million with a free cash flow margin of 70.6%, which compares
favourably to the Company’s Q3 2022 EBITDA margin of 65.4%.Summary of cash flow
9M 9M % Δ % Δ
AED million Q3 2021 Q3 2022
2021 2022 YoY YoY
Changes in working capital (83) 28 N/M (31) 13 N/M
Net cash flow from operating activities 929 1,143 22.9% 315 315 -0.1%
Net cash used in investing activities (1) (4,003) N/M (1) (4,000) N/M
Net cash used in financing activities (928) 3,350 N/M (314) (30) -90.4%
Free cash flow (1) 928 1,140 22.8% 314 315 0.2%
Free cash flow margin (2) 77.3% 82.0% 4.7% 76.9% 70.6% -6.3%
(1) Free cash flow is net cash flows from operating activities le ss purchases of property and equipment plus proceeds from the sale of property and equipment
(2) Free cash flow margin is free cash flow divided by revenue
Business Highlights
Salik completes landmark IPO
On September 29, Salik shares began trading on the Dubai Financial Market, culminating a successful
IPO. The strong support for the issuance prompted the Government of Dubai as the Selling
Shareholder, represented by the Department of Finance, to increase the offered shares from
1,500,000,000 to 1,867,500,000 shares representing 24.9% of the company’s share capital, at a
price of AED 2.0 per share. The offering was oversubscribed by more than 49 times as it drew orders
with a total value exceeding AED 184 billion, which was a clear indication of the strong demand for
Salik’s shares by various investor categories.
Company makes key appointments to ensure seamless operation post carve-out
Salik’s workforce increased from 12 full-time employees on 30 June 2022 to 19 employees as of 30
September 2022.
The Company made key appointments to ensure its ability to operate independently as a standalone
legal entity following its carve-out of the RTA, led by the appointment of a Chief Technology Officer
and Support Services Director. In addition, the Company hired key positions in strategy and growth,
marketing and corporate communications, corporate IT, investor relations, enterprise risk
management, compliance and internal audit, and the board secretary in preparation for listing on the
DFM during the quarter.
Salik completes rebrand for toll gates and website
The Company recently underwent a brand refresh exercise as part of its journey to becoming a listed
company. The new corporate identity was unveiled last September and Salik is pleased to share that
today its eight toll gates as well as the website showcase the new brand identity.
Business Outlook
Traffic performance, as one indicator for economic activity, was quite solid through to September.
Total trips in Q3 2022 stood just 5% below peak Q3 2019 level. Salik expects traffic performance to
return to pre-pandemic peak levels recorded in 2019 by the first half of 2023.
The Company has started to explore growth initiatives and shall update the market on progress in
due course.Salik expects to pay the first dividend for the second half of 2022 by April 2023. The dividend pay-
out will be in form of a 100% of net profit after setting aside the statutory reserves required by law.
The Company expects to record a one-time statutory reserve of AED 37.5 million in H2 2022.
---ENDS---
About Salik Company PJSC
Salik Company PJSC has been established in its current form, as a public joint stock company in June
2022 pursuant to Law No. (12) of 2022. Salik, meaning “clear” in Arabic, is Dubai’s exclusive toll gate
operator and currently operates automatic toll gates utilising Radio Frequency Identification (RFID)
technology throughout Dubai. Salik’s current eight toll gates are located at strategic junctures
throughout Dubai, especially on Sheikh Zayed Road which is considered the Emirate’s main road. In
2021, 481 million journeys were made through the Salik toll gates, which includes tourists making
their way to Dubai’s many attractions, or residents efficiently travelling as part of daily life. Under a
49-year concession agreement (ending in 2071) with the Roads and Transport Authority (RTA), Salik
holds the exclusive right to operate current and future toll gates across the Emirate of Dubai.
Investor Relations Media Enquiries
Mohamed Zein Faisal Tawakul
Head of Investor Relations Marketing & Corporate Communications
Manager
ohamed.Zeinelabedin Faisal.Tawakul@salik.ae
E: M @salik.ae E:
Disclaimer
No statement in this document is intended to be nor may be construed as a profit forecast. Any statements
made in this document which could be classed a “forward-looking” are based upon various assumptions,
including, management’s examination of historical operating trends, data contained in the Company’s records
and other data available from third parties. Although the Company believes that these assumptions were
reasonable when made, these assumptions are inherently subject to significant risks, uncertainties and
contingencies. Forward-looking statements are not guarantees of future performance. Risks, uncertainties,
contingencies could cause the actual results of operations, financial condition and liquidity of the Company to
differ materially from those results expressed or implied in the document by such forward-looking statements.
No representation or warranty is made that any of these forward-looking statements or forecasts will come to
pass or that any forecast result will be achieved. No reliance should be placed on any forward-looking statement. | neutral |
The
National
Bank
of
Ras
Al
-Khaimah
(P.S.C)
MANAGEMENT
DISCUSSION
&
ANALYSIS
FINANCIAL
RESULTS
PRESS
RELEASE
AND
Classification: RAKBANK-Public
Q1 2023
26 April 2023Classification: RAKBANK-Public
1
RAK BANK
RAKBANK more than doubles its quarterly Net Profit at
AED 450M for Q1’23 on the back of strong income growth
Ras Al Khaimah, United Arab Emirates, 26 April 2023 – The National Bank of Ras Al
Khaimah (RAKBANK) today reported its financial results for the first quarter of 2023 (“Q1’23”)
Total Income Total Assets Deposits Return on Return on
Highlights
AED 1,073M AED 68.9B AED 46.4B Equity Assets
Q1 2023 +48% +14.8% +16.4% 19.4% 2.8%
YoY YoY YoY
RAKBANK delivered a Net Profit increase of 105% for Q1 2023 driven by a robust and
diversified growth on both sides of the balance sheet. This was underpinned by strong
sales momentum and lower cost of funds.
•
Total Income performance was supported by a strong net interest income of AED 788.8M,
up 46.0% YoY. Net interest margins increased to 4.9% against 3.8% (Q1’22) and continues
to be among the highest in the Industry. Q1’23 non-interest income of AED 284.4M, up
52.5% YoY. The growth in non-interest income was driven by higher forex and derivative
income.
•
Gross loans & advances at AED 38.7B, reflecting a 1.4% increase compared to 31
December 2022 on the back of a changing balance sheet mix in line with the strategic
direction of the bank.
•
Customer deposits stood at AED 46.4B, an increase of 3.3% compared to 31 December
2022. The Bank has a strong Current & Saving Account (CASA) franchise with the CASA
ratio of 70.5%.
•
Cost of Risk remained low due to the Bank’s diverse business mix and resilient UAE
economic environment, leading to a 30.9% reduction in impairments as against Q4’22.
Impaired Loan provision coverage ratio increased to 192.1% against 137.8% in Q1’22,
remaining one of the strongest in the industry.
The Bank achieved balanced growth across all Business Segments:
Personal Banking:
•
Gross loans & advances at AED 19.1B are up 1% YoY and +2% against FY’22 driven by the
sales momentum across products with balance sheet for Auto loans +6%, Mortgages +5%
and Personal loans +0.3%.
•
Customer deposits of AED 16.7B, are up 22% YoY and +6% during the quarter driven by
higher Term deposits +30% & CASA +0.3%.
•
Q1’23 income supported by net interest income of AED 229M, +19.0% YoY and non-
interest income of AED 123M, +1% YoY.
Business Banking:
•
Gross loans & advances of AED 9.3B, are up 12% YoY and +3% against FY’22 mainly
through higher volumes for Rak business loans +5%.
•
Customer deposits of AED 19.7B, are up 14% YoY and +7% during the quarter driven by
higher CASA deposits +7% & Term deposits +2.7%.
•
Q1’23 income supported by net interest income of AED 337M, +57.0% YoY and non-
interest income of AED 77M +6% YoY.Classification: RAKBANK-Public
Wholesale Banking & Others:
•
Gross assets (including lending to banks) of AED 19.8B, are up 13% YoY and +1% against
FY’22 mainly driven by higher FI bank lending +2%.
•
Customer deposits of AED 9.9B, are up 13% YoY and +7% during the quarter.
•
Q1’23 income supported by net interest income of AED 224M, +68.0% YoY and non-
interest income of AED 84M against a loss of 8Mn in Q1’22.
RAKBANK delivered strong shareholder returns with ROE of 19.4% and ROA of 2.8%,
and remained highly liquid and well capitalized.
•
The Bank’s Capital Adequacy Ratio (CAR) was at 16.8%.
•
The regulatory eligible liquid asset ratio at 14.8%, compared to 12.8% as at 31
December 2022, and the advances to stable resources ratio stood comfortably at
81.8% compared to 79.7% at the end of 2022.
•
Cost-income ratio improved to 36.2% driven by strong cost discipline, automation and
digitization.
•
The Bank’s non-performing loans ratio improved to 3.0% against 3.6% in Q1’22.Classification: RAKBANK-Public
Raheel Ahmed, CEO of RAKBANK said, “Delivering on our
multi-year strategy, we accelerated our growth and achieved a
record net profit of AED 450M and a record total income of
AED 1,073M for the quarter. In addition to this impressive
growth, I am very pleased with the progress we are making in
laying the foundation for sustainable growth.
In diversifying our income sources, we achieved robust growth
on both sides of the balance sheet, across interest and fee
incomes, and in all our segments. In terms of building deeper
customer relationships, we achieved strong growth in digitally
active customers with digital transactions growing by 12%
YoY. Our high CASA ratio in our deposit base of 70.5% despite
the high interest rate environment is a testament of the strong Raheel Ahmed, CEO
relationships we built with our customers and clients. We
enhanced our operational leverage and improved our cost-income ratio through our strong
cost discipline, and our cost of risk reduced via diversifying our business mix. The Bank
remains well capitalized and liquid with a Capital Adequacy Ratio of 16.8% and an Eligible
Liquid Asset Ratio of 14.8%. As a result of our progress, we achieved an ROE of 19.4% and
ROA of 2.8%.
Being one of the largest SME banks in the UAE, we continue to back entrepreneurs and start-
ups by opening more than 4,000 business accounts in Q1 2023, of which 1,600 accounts were
opened for start-ups. Similarly, we disbursed AED 571M in business loans, out of which AED
394M were disbursed for new business loan customers.
As we grow, we are investing heavily in technology while maintaining cost discipline to digitize
customer journeys, upgrade core data architecture, and revamp compliance and risk
infrastructure. This investment will enable RAKBANK’s journey to provide a superior customer
experience that is characterized by its hyper-personalization and relevance. The recent launch
of our first fully digital accounts opening capability with straight-through processing is a good
example of how we are digitizing our customer journeys.
Continuing from Q4 2022, we are focusing on expanding strategic hires to lead our growth,
and we remain committed to and supporting the career aspirations and ambitions of our
colleagues. Special attention is drawn to developing our Emirati talents as we align
ourselves to the UAE leadership’s mission of growing and nurturing local talent.
As one of the nation’s leading financial institutions, RAKBANK recognizes our responsibility
to support the ‘UAE Net Zero by 2050’ initiative. The team is actively engaged with RAK
Government on COP28 submissions, working on financial inclusion and reducing emissions.
We continue to support financial inclusion and accelerate digital remittances through our
wages protection system partner and the United Nations Capital Development Fund.
Lastly, our outlook for FY 2023 remains positive yet cautious, with the buoyant UAE
economy and uncertain global macro set up as backdrops. While we closely monitor the
headwinds of inflation, rising interest rates, geopolitical developments, we will continue
building on the Bank’s strengths and remain committed to delivering on our strategy.”
Digital Transactions Card Spends Payment through Digitally Active
our rails (In/Out) Customers
+12% YoY +24% YoY +9% YoY +15% YoYClassification: RAKBANK-Public
Financial Highlights for Q1 2023
Income Statement Highlights Quarter Results Variance
Q1’23 Q1’23
(AED Mn) Q1’23 Q4’22 Q1’22
vs Q1’22 vs Q4’22
Net Interest Income and net income
788.8 733.1 540.4 46.0% 7.6%
from Islamic financing
Non-Interest Income 284.4 261.6 186.5 52.5% 8.7%
Total Income 1,073.2 994.8 726.9 47.6% 7.9%
Operating Expenditures (389.0) (371.4) (372.4) (4.5%) (4.7%)
Operating Profit Before Provisions
684.2 623.3 354.6 93.0% 9.8%
for Impairment
Provisions for Impairment (233.9) (338.7) (134.5) (73.9%) 30.9%
Net Profit 450.3 284.6 220.1 104.6% 58.2%
Balance Sheet Highlights Results as at Variance
Mar’23 Dec’22 Mar’22 Q1’23 Q1’23
(AED Bn)
vs Q1’22 vs Q4’22
Total Assets 68.9 66.4 60.0 14.8% 3.8%
Gross Loans & Advances 38.7 38.1 37.2 4.1% 1.4%
Deposits 46.4 44.9 39.8 16.4% 3.3%
Key Ratios Quarter Ratios Variance
Q1’23 Q1’23
Percentage Mar’23 Dec’22 Mar’22
vs Q1’22 vs Q4’22
Return on Equity* 19.4% 12.5% 10.5% 8.9% 6.9%
Return on Assets* 2.8% 1.7% 1.5% 1.3% 1.1%
Net Interest Margin* 4.9% 4.5% 3.8% 1.1% 0.4%
Cost to Income 36.2% 37.3% 51.2% 15.0% 1.1%
Impaired Loan Ratio 3.0% 3.0% 3.6% 0.6% 0.0%
Impaired Loan Coverage Ratio 192.1% 181.7% 137.8% 54.3% 10.4%
Total Capital Adequacy Ratio
16.8% 16.4% 16.5% 0.3% 0.4%
Basel III**
* Annualized
**After application of Prudential FilterClassification: RAKBANK-Public
Profitability Growth supported by Income momentum and improvement in
Provisions
•
Net Profit increased by 104.6% to 450.3M (vs Q1’22 104.6% and Q4’22 58.2%).
•
Net Interest Income and Income from Islamic products net of distribution to depositors
increased by 46.0% to AED 788.8M (vs Q4’22 7.6%).
•
Interest income from conventional loans and investments increased by 79.7%, while
interest costs on conventional deposits and borrowings increased by 300.5%. Net
income from Sharia-compliant Islamic financing increased by 7.8%.
•
Non-Interest Income increased by 52.5% to AED 284.8M (vs Q1’22 52.5% and Q4’22
8.7%), primarily due to forex and derivative income booked in Q1 2023.
•
Total Income increased by 47.6% (vs Q4’22 7.9%), benefiting from the balance sheet
growth momentum.
•
Operating Expenditure was AED 389.0M (vs Q1’22 AED 372.4M), reflecting a 4.5%
increase compared to the same period in 2022, and a 4.7% increase compared to Q4
2022, due to the Bank's growth investments.
•
Operating Expenses increased mainly due to higher staff costs, card expenses, and
other operating expenses. However, these were partly offset by lower IT expenses,
occupancy costs, depreciation, and communication expenses.
•
Cost-to-Income ratio for the bank decreased to 36.2% (vs Q1’22 51.2% and Q4’22
37.3%).
•
Provision for credit loss increased by 73.9% to AED 233.9M for Q1 2023 compared to
Q1 2022, due to prudent precautionary measures in anticipation of expected
developments. However, compared to Q4 2022, the provision for credit loss decreased
by 30.9% for Q1 2023.
•
Net Credit Losses to average loans and advances closed at 2.5% (vs Q4’22 3.4%).
Balance Sheet crosses AED 68.9B with a strong uptick across all customer
segments
•
Balance sheet crosses AED 68.9B as the Total Assets increased by AED 2.5B compared
to 31 December 2022 reflecting a growth of 3.8%, with an increase in Cash/Central
Bank balances by AED 929.2M, Investments by AED 805.8M, Gross Loans and
Advances by AED 551.9M and Lending to Banks by AED 480.3M as compared to 31
December 2022.
•
Business Banking portfolio increased by AED 264M, Retail Banking by AED 286.2M and
Wholesale Banking segment (including bank lending) increased by AED 211M
compared to 31 December 2022.
•
Business Banking recorded 2.9% growth compared to 31 December 2022 with
Business Loans growing by 5.3% and an increase of 1.5% on the Trade and Working
Capital Loans portfolio.
•
Retail Banking reflected a growth of AED 286.2 M supported by a strong sales momentum
across products with Mortgages growing by 4.8% and Auto Loans by 6.4%.
•
Non-performing Loans and Advances to Gross Loans and Advances ratio remained
same at 3.0% as at 31 March 2023 compared to 31 December 2022.
Robust Growth in Customer Deposits as we continue to be the main bank for most
of our customers
•
Q1’23 Customer deposits increased by 3.3% compared to 31 December 2022, mainly
due to an increase of AED 1,089.5M in CASA deposits and AED 404.7M in time deposits,
endorsing the trust our customers place in RAKBANK’s solutions and services.
RAKBANK has built a strong CASA franchise with a CASA ratio of 70.5 % as at 31
March 2023.Classification: RAKBANK-Public
Strong Capital and Liquidity position
•
The Bank’s Capital and Liquidity ratios remained strong.
•
With a Total Capital Ratio as per Basel III, after the application of prudential filter, at
16.8% compared to 16.4% at the end of 2022.
•
The regulatory eligible liquid asset ratio at the end of 31 March 2023 at 14.8%,
compared to 12.8% as at 31 December 2022, and the advances to stable resources
ratio stood comfortably at 81.8% compared to 79.7% at the end of 2022.
Healthy Cash Flows from operating activities
•
Cash and cash equivalent as at 31 March 2023 were AED 4.7B compared to AED
4.3B as at 31 December 2022.
•
Net cash generated from operating activities was AED 1.2B, AED 819.8M was used in
investing activities and AED 4.7M used in financing activities.
Impact of Projected Capital Expenditure and developments
•
The Group incurred AED 37.3M in capital expenditure in Q1 2023.
•
RAKBANK will carry on advancing its investment towards customer-centric
technology transformation.
Ratings
RAKBANK gets continuously rated by leading rating agencies with their latest ratings shown
in the table below. This rating reflects the institutional strength of the Bank that is backed
up by trust and transparency in financial reporting.
Rating Agency Last Update Deposits Outlook
Moody’s November 2022 Baa1 / P-2 Stable
Fitch April 2023 BBB+ / F2 Stable
Capital Intelligence August 2022 A- / A2 PositiveClassification: RAKBANK-Public
About RAKBANK
RAKBANK, also known as The National Bank of Ras Al Khaimah (P.S.C), is one of the UAE’s most dynamic
financial institutions. Founded in 1976, it underwent a major transformation in 2001 as it rebranded into
RAKBANK and shifted its focus from purely corporate to retail and small business banking. In addition to
offering a wide range of Personal Banking seriices, the Bank increased its lending in the traditional SEE,
Commercial, and Corporate segment in recent years. The Bank also offers Islamic Banking solutions, iia
RAKislamic, throughout its branches and its Telephone and Digital Banking channels. RAKBANK is a public joint
stock company headquartered in the emirate of Ras Al Khaimah and listed on the Abu Dhabi Securities
Exchange (ADX). For more information, please iisit www.rakbank.ae or contact the Call Centre on +9714 213
0000. Alternatiiely, you can connect with RAKBANK iia twitter.com/rakbankliie and facebook.com/rakbank.
For enquiries, please contact:
Geraldine Dagher
Geraldine@rakbank.ae
Eichelle Saddi
michelle.saddi@rakbank.ae
DISCLAIEER
The information in this document has been prepared by The National Bank of Ras Al Khaimah (P.S.C) a public joint stock
company, United Arab Emirates (“RAKBANK”) and is general background information about RAKBANK’s actiiities and is not
intended to be current as on the date of the document. This information is giien in summary form and does not purport to be
complete.
The information is intended to be read by iniestors haiing knowledge in iniestment matters. Information in this document,
including forecast or financial information, should not be considered as an adiice or a recommendation to iniestors or potential
iniestors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into
account your particular iniestment objectiies, financial situation or needs. Before acting on any information you should
consider the appropriateness of the information haiing regard to these matters, any releiant offer document and in particular,
you should seek independent financial and legal adiice. All securities and financial product or instrument transactions iniolie
risks, which include (among others) the risk of adierse or unanticipated market, financial or political deielopments and, in
international transactions, currency risk.
This document may contain published financial information, or information obtained from sources belieied to be reliable,
forward looking statements based on numbers or estimates or assumption that are subject to change including statements
regarding our intent, belief or current expectations with respect to RAKBANK’s businesses and operations, market conditions,
results of operation and financial condition, specific proiisions and risk management practices. Readers are cautioned not to
place undue reliance on these forward-looking statements. RAKBANK does not undertake any obligation to publicly release the
result of any reiisions to these forward-looking statements to reflect eients or circumstances after the date hereof to reflect the
occurrence of unanticipated eients. While due care has been used in the preparation of forecast information, actual results may
iary in a materially positiie or negatiie manner. Forecasts and hypothetical examples are subject to uncertainty and
contingencies outside RAKBANK’s control. Past performance is not a reliable indication of future performance.
RAKBANK disclaims any responsibility for the accuracy, fairness, completeness and correctness of information contained in this
document including forward looking statements and to update or reiise any information or forward-looking statement to reflect
any change in RAKBANK’s financial condition, status or affairs or any change in the eients, conditions or circumstances on which
a statement is based. Neither RAKBANK nor its related bodies, corporate, directors, employees, agents, nor any other person,
accepts any liability, including, without limitation, any liability arising from fault or negligence, for any direct, indirect or
consequential loss arising from the use/reference of this document or its contents or otherwise arising in connection with it for
the quality, accuracy, timeliness, continued aiailability or completeness of any data or calculations contained and/or referred to
in this document. | positive |
Press Release
Deyaar delivers profit of AED 237.5 million for YTD
Sep’2023, up 130% YOY.
Dubai, UAE – 14 November 2023: Deyaar Development PJSC ("Deyaar"), one of the leading
real estate developers and service providers in Dubai, the United Arab Emirates (UAE), has
reported a significant increase in its profits for the first nine months of 2023, compared to the
corresponding period in the previous year. The significant growth is underpinned by robust
property sales and growth in the performance of recurring revenue businesses.
Key Financial Highlights:
• Profit for the period of AED 237.5 million (AED 103.3 million for the same period in
2022).
• Revenue for the period of AED 939.8 million (AED 577.2 million for the same period in
2022).
• Deyaar’s profit for Q3 2023 surged 227% to AED 119.02 million year-on-year. Revenue
for Q3 2023 increased 50% to AED 310.9 million from AED 207.7 million in Q3 2022.
Saeed Al Qatami, CEO of Deyaar, said: " In the wake of our positive H1 financials, our success
story continues in Q3, propelled by the triumphs of our recent projects and the amplified
momentum in our project launches. Today’s financial results stand as a testament to our
strategic vision. Our remarkable increase in revenues is primarily attributed to the substantial
growth in property Development revenue amounting to AED 334.6 million. This achievement
is fuelled by the recognition of revenue from Tria and Mesk, coupled with accelerated
construction progress in Regalia. Furthermore, the complete portfolio sale of Noor and Mesk
has significantly bolstered our financial standing. Now, as we are closing the nine-month
chapter of this year, we remain committed to fostering innovation, delivering unparalleled
value to our stakeholders, and seizing strategic growth opportunities within the dynamic real
estate sector. As we move into Q4 2023, we continue our journey toward excellence driven by
our re-imagined development pipeline and designs, with launches to be announced in the
coming months.”
Other Achievements:
Deyaar remains committed to delivering outstanding real estate solutions, shaping the skyline
of Dubai, and exceeding customer expectation. The main works at Tria, Deyaar’s luxury
residential tower in Dubai Silicon Oasis, are progressing steadily as planned, showcasing the
company’s commitment to delivering exceptional quality within schedule.At Regalia in Business Bay, a pivotal project for Deyaar, approximately 50% of the tower floor
slabs have been successfully casted, marking a significant step towards completion. This
achievement underscores our dedication to timely and efficient project execution.
Deyaar’s dynamic outlook is backed by a solid track record of delivering high-quality projects
and fostering enduring relationships with customers and stakeholders. The strong financials
come on the heels of several global and regional accolades, solidifying Deyaar’s position as a
distinguished player in the real estate sector. These include Mar Casa, its first seafront luxury
residential tower, which won the 2023 Luxury Lifestyle Awards, as well as two 5-star awards
and four major award categories at the prestigious Arabian Property Awards 2023.
Listed on the Dubai Financial Market and majority-owned by Dubai Islamic Bank (DIB), Deyaar
is one of Dubai's leading developers, with real estate ventures spanning key growth corridors
and prime locations within the emirate. Over the past two decades, Deyaar has delivered an
extensive portfolio of commercial and residential properties, all offering the highest levels of
service and quality.
-ENDS- | positive |
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Head Office: PO Box 119227 Dubai, UAE I Toll Free: 800 UIC4U (84248) I info@unioninsurance.ae I www.unioninsurance.ae 0-sa-aiwo,, .
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UNIONINSURANCE
Detailed Analysis of accumulated losses
Date: 14/08/2023
Listed company name: Union Insurance Company PJSC
Define the period of the For the period ending 30 June 2023
financial statement
Accumulated losses: AED 154,826,000
Accumulated losses to 46.78%
capital ratio: The main reasons leading Provision made for real estate properties: :7-1.,A4 C:1101.4 C..31,,,,^1, 4
to these accumulated losses and their history: During the period ended 30 June 2021, the 4.):111C,I.LI 2021 ..9.435:l 30 ,94.!0-111,51111 Company had provided an amount of AED 72.30 u" A (.551J-41 ,*_>3 0.3.-11.0 72.30 el:L.3 million as a provision towards Investment L jc i 4.11411 clitt.,..=i)11 Lci cask, 714. )1,111.' properties and provided appropriate disclosures 2021 5.)35.4 30 vi AA 11-11 kflin 2 L11 c:-'311.41 j aiS in the Financial Statements for the period ended .7k.S c1L.411 0111 j141 vulao J:333* (si 30 June 2021 and the Board of Directors Report ,51) -0.113 dal al, 4LL..111 i>510 cz2'..)1,3.a.aS" 1:115 4sllx.o and subsequently the company has treated this &-.)-0-) 2020 _.),Ly. 1 Cyz 13-.6r-1 J:11-1.6.)10 as prior period adjustments, and this has resulted st..diamyi cl.)1 xJ ji469 .u5131.4 eA ja 0_01.4 72.3 in increase in accumulated losses as of 1st 43 Lk)). LI?. .6151.1411 J jr -M (r.A &I.. 72 a.3 -) . January 2020 by AED 72.3 million. The aratil ui-CliS .2014 2013 Ls-aa (.11:% investment properties (AED 72.3 million) 0:0 ji L -Ai Lci 60 Cs j.11.1'1 represent purchased assets from a related party `r1:1 1.1 ALLS:" '91i 4,4 ?Sa. Lill 150 14:----
during the years 2013 & 2014. The purchased j95.1.4.11 ..)UtA.011 (21,43 LiiL) ciA411t_i_AJI assets comprise a 60 residential unit in a single 60:3 310 (4..5.,"11) J.U.111 alai 4:1101311./ C.Aci building and a plot of land of 150,000 feet with J9.-`" 144 04 j.9 a) 4SJ 6111 di c 41c 12'4 V.9 i. 01.A integrated infrastructure. The counterparty (a 0 u1_ ^} -.4 "S "'0 ,95:1.0111= i, iI0 1,,,11 L5.6 P.311 04, 4- 4.!<121 related party) to the above transactions never (301-C a 4-S.Y21 sj1-)1 .thC1.8 3,3114 (.:31A e_s 0344 72.3) fulfilled their obligation to the Company (the u B Cu oy me pr) a ns yi nc ne e ithpu er rc ha has se td ha et e. t itlA ec c do erd ei dn sg ly n, ort he a e.L.1 4, .4 1, .5 11 1 J 1 a.a 444611 'A s c jalIc t Si4 ku1 l l :t .S 11 .1 5,,yc _41:11 .2021 ,y1.4- 30 cci 0.4-4A1--,011 possession of the said properties. As a prudent measure, The new Board of the Company has decided to book a full provision (AED 72.3 million) against the said assets. The Company is pursuing legal actions against the involved parties to recover the Company's rights, in accordance with the resolution of Shareholders
Assembly Meeting held on 30 September 2021.
Head Office: PO Box 119227 Dubai, UAE I Toll Free: 800 UIC4U (84248) I info@unioninsurance.ae I www.unioninsurance.ae fiwcialitroiathReung
(-11/ kylh01 ro,i5j) r..v dim] 1 rani 04,41.11 .iLSgg oLS pi) (0 LSnil &sub eLSA IA BEST
Registered in accordance with the Insurance Companies Agents Law No. 6 for 2007 (Licence No. 67)
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deretsigeRImpairment of free hold land: .211.411 et i4 cjt* Lilt.)
In prior years, the Company had recorded free (.4.19:9 va.:412111 45_41 c,:ti4L,11 csi
hold land at an amount of AED 82,045 thousand. .116J-) Lill 82,045 d aid, ji- iN .3 -1,3 -1 1,1 r11
The land was obtained in an exchange e- Le; :41aLg; .Leta. J=am L):0 L
transaction which occurred on 15 July 2018. The *A-44 (.541-,-,11(.1-,i'il . 2018 ...9:11,3:115 Lci
previous asset was recorded at an amount of AED -11,u1 ,J.A4:111 ;k!tac- *.}4 0)4_, eA, Lill 82,045
82,045 thousand and as part of the exchange the L11159,210 ka.AI J,Wt malt, yetJyl :tS__>,111
Company received the land for the fair value of j4c* oktAtt A±SI. c,111. 4502111 cAati.1
jti cals.,
AED 59,210 thousand. The Company received 1.s 4 j..)t-1..31 .1i,41. jcNali J..)16.11
the title deeds for the land and the exchange was 59,210 k.4):. t".` ' "4 (.5,-:=11JS11 C.)1 0:05"1 U
considered to have commercial substance. On 43U1 oJill 1.111.- ot4e i,.Ajr4 4*.k5 ca.11 Sall the date of exchange, the land should have been J ,-.521 59,210 k L 4.,-3) Jail e Au ld i I J-11 recorded at AED 59,210 thousand. The Company to 22,834 0:311&.;Icr 114 cia cc" restated the prior period cost of the free hold L j1 11 22,834 :L.* B.)1.419 "LI 31.1x.4113 cr_31<11,,11" va land to AED 59,210 thousand. This correction 2020 1 1-4-C 4"k.S15,-.11 j)ti-L&-11" crsi et.J-) resulted in AED 22,834 thousand reduction in .2020 ..sa-qa 31 "property and equipment" and AED 22,834 thousand increase in "accumulated losses" as at each of 1 January 2020 and 31 December 2020. Allowance for doubtful receivable for isteLial 1.41,frziaL vg ,11,A1.4 j4).5.)4 rta5 oaAait former major shareholder (Related party): :(;Ce)t J Le4J
The company has made a bad debt provision of cri 49,t.11 aVail :LS C-14119
AED 26.2 million against insurance receivables e-.3 J,L9 0 L;.11-4) eu.) ilia- 26.2 44.4L. from former major shareholder during the years Ls -a. (Y-iL (.5-4..) ('131-"4 (y. 13:11411 CV -4.1-111 2019 (AED 4.7 million) and 2020 (AED 21.5 21.5) 2020 y (4-51.)-.) eibi3 03,1. 4.7) 2019 J million). (4-51..)1-.) eta as:4 Loss in fair value of the financial 114 41l.411 jl.tlizt.1 :thtJi 2t_41.11 t"i JLa investments since 2015. .2015 et.Q Initial adoption of IFRS 17 and IFRS 9. juice 31.1c,y cr1.9.01 jt..41.4.1 .0.1111 .1u:tall J ain ..11.1Y (Ala JL2-411,9 17 A) .A4.1-411 Due to the adoption of IFRS 17 for the first time, . 9 0..) .41-411 the financial statements of previous periods have j
been restated. The adoption led to accumulated 11,11,L411 _9)1111 allay L51_,Ait 3+,411 aul jt jy ' iI Jlii
losses increasing by AED 33.7 million, while the k..11. e:,1 '911 U sac.) cLi.z 4 S JA 17
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accumulated losses by AED 10.6 million. The a,..AA 333 .)11:, 4AS15,..:11 *o.A..).3 Lrl)
impact of IFRS 17 on AED 33.7 million is in the juLical au..y csi au.so jai tiia vi ,e1,3
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address accumulated one-off events. The company has reported a net 13.4 °..A. C-.).) cs.9" AS.,'"1. 1 cL1.1." Ai ' .6-1.1_9 .6J-41
losses: profit of AED 13.4 million for the period ended 30 sili 2023 lily. 30 cci AA 7-11 '651241 (.A_)-) Calla June 2023 and the implementation of planned 1+11-1-"I i+.111-1I1 .9 ''. IPd 1J-. 41 c):=1-1-' 1.1-._A11 1:1'Llt
measures to enhance profitability by the (-1-C4' *A-41.51-4.11 )Cosh CL4.91_.9 ;i71--.1.)11 ;614.3.1
company will lead to a significant decrease in its .;wu.ill _pill LY:l& j..1..).S accumulated losses over the coming periods.
Abdul Muttaleb M. H. Al Jaedi
Chief Executive Officer
114-114
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feihC | negative |
Dubai
JAp
Investments
DUBAI INVESTMENTS REPORTS NET PROFIT OF AED 364 MILLION
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2022
Dubai, 11th August 2022: Dubai Investments PJSC [DFM: DIC], the leading, diversified
investment company listed on the Dubai Financial Market (DFM), has reported a 20.5%
rise in net profits to AED 364 million for the six-month period ended June 30, 2022, as
compared to AED 302 million during the corresponding period of 2021.
The growth in the profit by AED 62.01 million is mainly driven by the continued strong
performance of the Group’s manufacturing, contracting & services segment. Total
assets for the Group remained stable at AED 22 billion. Total equity increased to AED
12.1 billion compared to AED 11.98 billion during the same period last year.
The Group has completed divestment of 50% equity interest in Emirates District
Cooling (Emicool) LLC and will recognize the resultant gain on disposal and fair
valuation gain on retained interest amounting to AED 980.4 million in Q3 2022.
Khalid Bin Kalban, Vice Chairman and Chief Executive Officer of Dubai Investments,
said: “We are already halfway through 2022 and the results during this time reiterate
the resilience of our business model and it is worthy to note that we have been moving
steadily with a continuous and a consistent growth plan. As a Group, we are focussed
on a strategic diversification process through organized investments and divestments.
Despite the challenging macro economic environment, our outlook for the rest of the
year remains cautiously optimistic, as we are focused on channelising efforts towards
expanding business regionally and identifying strategic investment opportunities
across our businesses.”
-ENDS- | positive |
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22 NNoovveemmbbeerr 22002233Q3 2023 Financial Results
Alpha Dhabi Holding
Alpha Dhabi Holding
Zu±1.4 Lill' I Lp4.15 Lti_li
Alpha Dhabi Surpasses AED 11.6 Billion Net Profit,
Showcases Remarkable Growth And Strategic Vision For
2023
• Nine month performance with net profit at AED 11.6 billion and revenue at AED 32.4
billion, up 29% and 22% respectively
• Growth is attributed to a combination of organic expansion and strategic acquisitions
across its core verticals and diversified platform
FINANCIAL PERFORMANCE AND METRICS
AEDbn YTD 2023 YTD 2022 YoY% Change
Revenue 32.4 26.6 22%
Net Profit 11.6 9 29%
EPS 0.97 0.68 43%
11.6
AED billion AED
32.4
billion
Net Profit Revenue
AED
133.6
billion
AED
19.1
billion
Total Assets Total Cash Position
2Q3 2023 Financial Results
Alpha Dhabi Holding
Note: YTD as at the end of Q3 2023
Eng. Hamad Al Ameri, CEO of Alpha Dhabi Holding, said:
“Alpha Dhabi’s milestone of AED 11.6 billion in net profit for YTD
September 2023 testifies to a remarkable journey of growth. Our
success stems from a multifaceted strategy and we attribute this
achievement to the synergy of a diversified portfolio that spans
vital sectors, an unwavering commitment to best-in-class
corporate governance, and the exceptional performance delivered
by our dedicated colleagues and business leaders. This synergy has
empowered us to unlock the true potential of our investments and
deliver substantial value to our shareholders.
As we navigate the remainder of the year, our focus is on
harnessing the significant momentum we have built and
strategically driving further growth while seizing exciting
investment opportunities. Our strategy revolves around expanding
our portfolio through acquisitions and geographic diversification,
with the overarching goal of extending our global footprint within
the investment landscape.”
Abu Dhabi, UAE; 02 November 2023: Alpha Dhabi Holding PJSC (“Alpha Dhabi” or “the Group”), one of the
fastest-growing investment holding companies in the MENA region, listed on the Abu Dhabi Securities
Exchange (ADX: AlphaDhabi), has announced its financial results for the period ending 30 September 2023.
Alpha Dhabi reported robust financial results, with a noteworthy 29% year-on-year increase in net profit,
surging to AED 11.6 billion, as compared to AED 9 billion in the same period in 2022. This growth is
attributed to a combination of organic expansion and strategic acquisitions, underscoring the Group’s
commitment to enhancing shareholder value. Alpha Dhabi also witnessed a surge in revenue, reaching AED
32.4 billion, reflecting a substantial 22% year-on-year increase compared to the same period last year (YTD
2022: AED 26.6 billion).
Alpha Dhabi’s diversified portfolio has been a major driver behind the growth in revenue. The Group has
continued to expand its portfolio and invest in strategic sectors including hospitality and energy, as well as
launching a Climate Capital platform. In addition, the group has invested in to financial ventures spanning
different geographies, including the MICAD Credit JV in collaboration with Mubadala and Alpha Wave
Ventures.
The Group’s financial position remains strong, boasting total assets of AED 133.6 billion and a cash
position of AED 19.1 billion as of September 30, 2023—owing to the strategic acquisitions and investments
made since 2022 and notable performance seen across all segments during the period.
Through the rest of 2023, Alpha Dhabi is strategically poised to foster further growth and capture
investment opportunities by incorporating new operating assets through acquisitions and geographical
3Q3 2023 Financial Results
Alpha Dhabi Holding
diversification, all the while enforcing a rigorous and exemplary corporate governance structure across the
ADH portfolio of businesses.
ABOUT ALPHA DHABI HOLDING
Alpha Dhabi Holding (ADH), the UAE listed conglomerate, was established in 2013 and is one of the fastest
growing Abu Dhabi based investment holding companies, with more than 150 businesses spread across
healthcare, renewable energy, petrochemical and other industries as well as real estate, construction and
hospitality. With over 95,000 employees, ADH is a strategic contributor to the UAE economy and is committed
to drive continuous growth for its stakeholders through investments in emerging businesses, supporting
innovation and diversity.
MEDIA CONTACTS
Alpha Dhabi Holding Weber Shandwick
Mary Khamasmieh
Investor Relations
Head of Public Affairs
IR@alphadhabi.com
M: +971 50 2731 753
E: mkhamasmieh@webershandwick.com
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Investor Relations
Alpha Dhabi Holding
d..a4 L.dJI 0.4..b LaJi
Alpha Dhabi Holding PJSC (“ADH”) reports a Group net
Alpha Dhabi Holding PJSC
profit of AED 11.6 Bn for the YTD September 2023,
Ticker: ALPHADHABI
showing continued momentum in the execution of its
Market Cap: AED 189 Bn
strategy across key verticals and commitment to
(As at 31.10.2023)
generate higher shareholder value.
Investor Metrics:
YTD Sep 23 Revenue: AED Bn
Revenue 40.0
32.4
30.0 26.6
AED 32.4 Bn
20.0
22% Increase
10.0
(YOY)
-
YTD 22 YTD23
YTD Sep 23 Net Profit AED Bn 15.0 Owner’s Net Profit AED Bn
15.0
11.6
Net Profit 9.8
9.0 10.0
10.0
6.8
AED 11.6 Bn
5.0 5.0
29% Increase
(YOY) - -
YTD 22 YTD23 YTD 22 YTD 23
Net Margin Earnings Per Share EBITDA EBITDA Margin
36% AED 0.97 AED 14.1 Bn 44%
+200bps YoY +43% YoY +33% YoY +400bps YoY
Total Assets Total Equity Total Liabilities Cash Balance
AED 133.6 Bn AED 73.8 Bn AED 59.8 Bn AED 19.1 Bn
2% Increase 5% Increase 2% Decrease 25% Decrease
(YTD) (YTD) (YTD) (YTD)
Net Debt to
Net Debt Return on Equity2
EBITDA1
AED 1.8 Bn 25%
0.1x
1. Net Debt to EBITDA is based on LTM EBITDA
2. Return on Equity is based on LTM profits attributable to the ownersInvestor Relations
Company Overview
Ranked
13th
in Middle East
95,000+ 150+
by Forbes ME
Employees Businesses
(by market
cap)
AleadingInvestmentHoldingcompany,witheightoperatingverticalsand150+
businessesacrossMiddle East,Europe,Asia andNorth America,each ofwhich is
committed to be transformed into platforms of potential, progress, and
prosperity.
Strategic Investments Financial Investments
Industrial
Investments inwhich the group hascontrol Investments in which the group does not
or significant influence and is able to haveanycontrolorsignificantinfluence.
Construction
participate and support in the growth
strategyoftherespectivebusinesses.
Real Estate
Listed Listed
Key listed strategic investments as at The Group was a cornerstone investor in
Healthcare
30September2023are: theIPOsofBorougeandDEW0A
21 l
..!4._ Hospitality
JiUl
,N auC l. I H ALDAR dI9 e- - w2m s
Energy
Non-Listed Non-Listed
The group has a wide portfolio of The group has a wide portfolio of
Services
strategic investments in privately held financialinvestmentsacrossgeographies
companiessuchasPureHealth,Mawarid such as MICAD Credit JV in partnership
Holding Investment LLC, Trojan Climate with Mubadala and Alpha Wave
ConstructionGroup. Capital Ventures.
Built on strong key values focused on maximizing share holders returns
Strengthening Portfolio Corporate Governance Effective Leadership Synergies
waa,
,
Significant capital The group maintains a Strong performance The group continuously
deployment, successful steadfast commitment to delivered by highly engaged seekstoidentifyanddeliver
expansion of our platform, corporate governance. colleagues and business synergies across its
and enhancing our heads of the company and portfolio.
geographic footprint. its subsidiaries.Investor Relations
Management Discussion & Analysis
ADH is pleased to present its report on the performance of the Group for the period ended 30 September
2023. This report should be read in conjunction with the interim condensed consolidated financial
statementsforthesameperiod.
Profit & loss analysis for the period ending September 2023
Income Statement Summary (AED'Bn) YTD Q3 23 YTD Q3 22 YOY % Q3 23 Q3 22
Revenue 32.4 26.6 22% 10.3 9.0
Gross profit 6.7 7.1 -6% 2.0 2.1
EBITDA 14.1 10.6 33% 3.7 1.8
Net Profit 11.6 9.0 29% 1.3 1.1
EBITDA Margin 44% 40% +4% 36% 20%
Net Margin 36% 34% +2% 13% 12%
Revenue: The Group generated revenue of AED 32.4 Bn during the period ended 30 September 2023,
equivalentto22%YOYgrowth,drivenbythefollowing:
• Increased revenue across all business segments and the impact of strategic acquisitions and
investmentsmadesince2022.
Gross Profit: The Group reported a gross profit of AED 6.7 Bn with a gross margin of 21% reflecting the
impactofbothorganicgrowthandacquisitions.
Expense Analysis: General and administrative expenses for the period were AED 2.9 Bn versus AED 2.1 Bn
duringthesameperiodin2022,withtheincreasearisingfromthecontinuedgrowthoftheGroup.
OtherIncome:
• During the period, the group derecognized its ownership interest in Pure Health Holding resulting in a
fairvaluegainofAED7.5Bn.
Net Profit: First nine months of 2023 reported a net profit of AED 11.6 Bn against AED 9.0 Bn during the
comparableperiodin2022,withayear-on-yeargrowthof29%.
Earnings per share: Earnings per share for the period was AED 0.97 per share, as compared to AED 0.68
duringthesameperiodlastyear,anincreaseof43%.Investor Relations
Balance Sheet Analysis as at YTD September 2023
Total Assets (AED Bn) 133.6 Total Equity (AED Bn)
131.0
127.9 70.0 68.7 71.9 73.8
120.7
FY22 Q123 Q223 Q323 FY22 Q123 Q223 Q323
AED Bn FY 22 Q1 23 Q2 23 Q3 23 AED Bn FY 22 Q1 23 Q2 23 Q3 23
Current 74.9 61.5 65.7 68.5 Owners 31.9 38.1 40.1 40.9
Non-current 56.1 59.2 62.2 65.1 NCI & Hybrid 38.1 30.6 31.8 32.9
Total 131.0 120.7 127.9 133.6 Total 70.0 68.7 71.9 73.8
Return on Equity1 Net Debt to EBITDA2 Total Debt to Equity
25% 0.1x 0.3x
Borrowings Breakdown
Borrowings
AED 20.9Bn 26%
Net Debt
External Borrowings
AED 1.8 Bn
Cash 74%
Non Convertible
AED 19.1 Bn
Suksuks
Total assets were AED 133.6 Bn compared to total assets of AED 131.0 Bn for year ended 31 December
2022. The change is in-line with the Group’s derecognition of subsidiary (Pure Health Holding) to
investmentinjointventureandincludingtheperformanceofexistingportfoliointhecurrentperiod.
Total Liabilities were AED 59.8 Bn compared to total liabilities of AED 61.0 Bn for FY 22, with a YTD
decreaseof2%YTD.
Equity reported for the period was AED 73.8 Bn as at 30 September 2023 comprised of owner's equity at
40.9Bn,hybridequityinstrumentsatAED1.8BnandnoncontrollinginterestsatAED31.1Bn.
CashBalancereportedason30September2023wasAED19.1Bn.
Net Debt increased to AED 1.8 Bn from a net cash position of AED 4.1 Bn at 31 December 2022 due to
decreaseincashbalanceby25%YTD.
• Return on Equity is based on LTM profits attributable to the owners
• Net Debt to EBITDA is based on LTM EBITDA461
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****PPuurree HHeeaalltthh wwaass ddeerreeccooggnniizzeedd iinn 0011 2233Investor Relations
Key Investments during the period and Subsequent Events
Key Investments
EltizamAsset Aldar Properties PJSC, a subsidiary of the Group acquired a 65% equity interest in
Management
Etizam, for a consideration of AED 1,013 million. Etizam is a limited liability
Estate -Sole
Proprietorship company, registered and incorporated in Abu Dhabi and is engaged in real estate
L.L.C. (“Eltizam”)
leaseandmanagementservices.
Virginia
Aldar Properties PJSC, a subsidiary of the Group acquired a 100% equity interest in
International
Private School – Virginia, for a consideration of AED 210.5 million. Virginia is a limited liability
SP LLC.
company,registeredandincorporatedinAbuDhabiandisengagedineducation.
(“Virginia”)
Kent College LLC Aldar Properties PJSC, a subsidiary of the Group acquired a 100% equity interest in
-FZ. And Kent
Kent, for a consideration of AED 120 million. Kent is a limited liability company,
Nursery LLC -FZ
(“Kent”) registeredandincorporatedinDubaiandisengagedineducation.
Mais Interior
Trojan Construction Group,a subsidiaryofthe Group acquired a 60%equityinterest
Design L.L.C.
(“Mais”) inMais,foraconsiderationofAED24million.
Subsequent Events
Acquisitionof99.1%stakeinLCapitalKDTLTD(‘LCapital’),acompanyincorporated
L Capital KDT
in republic of Mauritius for an amount of AED 190 million by ADMO. L Capital is
LTD (‘L Capital’)
involvedinthehospitalitybusinessandoperatesunderthebrandname“CELAVI”
Acquisition of 35.1 % stake in Em Sherif Holding LTD (‘Em Sherif’), a company
Em Sherif
incorporated in Abu Dhabi, UAE on Abu Dhabi Global Market (‘ADGM’) for an
Holding LTD (‘Em
Sherif’) amount of AED 139 million by ADMO. Em Sherif is involved in the hospitality
business.
Acquisition of 51 % stake in NTS Middle East FZCO (‘NTS’), a company incorporated
NTS Middle East in Jabel Ali Freezone,UAE for an amount of AED213 millionbyADHEnergyRSCLtd.
FZCO (‘NTS’)
NTS is involved in cutting-edge manufacturing, repair and rental solutions in oil &
gassectorInvestor Relations
Future Plans
Management confirms its commitment to support and enhance the core investment activities of the
companytodrivecontinuousgrowthvia:
• Theadditionofexcitingnewoperatingassetsthroughacquisitionsandgeographicdiversification
• Implementing robust and exemplary corporate governance across the ADH portfolio of businesses to
ensurestronggrowthissupportedbyaneffectiveframeworkofcontrols.
About Alpha Dhabi Holding
Alpha Dhabi Holding (ADH), the UAE listed conglomerate, was established in 2013 and is one of the fastest
growing Abu Dhabi based investment holding companies, with more than 150 businesses spread across
healthcare, renewable energy, petrochemical and other industries as well as real estate, construction and
hospitality. With over 95,000+ employees, ADH is a strategic contributor to the UAE economy and is
committed to drive continuous growth for its stakeholders through investments in emerging businesses,
supportinginnovationanddiversity
Alpha Dhabi Holding
Investor Relations
IR@alphadhabi.com | positive |
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tthhee bbaacckk ooff aa rroobbuusstt QQ33 22002233 ppeerrffoorrmmaannccee,, NNBBFF ppoosstteedd aa nneett pprrooffiitt ooff AAEEDD 118811..00 mmiilllliioonn
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AAiiddeedd bbyy hhiigghheerr nneett iinntteerreesstt iinnccoommee aanndd nneett iinnccoommee ffrroomm IIssllaammiicc ffiinnaanncciinngg aanndd iinnvveessttmmeenntt
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ccoorrrreessppoonnddiinngg ppeerriioodd aanndd uupp 2222..33%% ffoorr tthhee tthhrreeee mmoonntthh ppeerriioodd eennddeedd 3300 SSeepptteemmbbeerr 22002233
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Operating income reached AED 1.7 billion for the nine month period ended 30 September
2023, up 27.7% compared to AED 1.3 billion in the corresponding period, reflecting the
benefit from increasing interest rates and enhanced asset and liability management.
Operating income growth of 24.1% was recorded for the three month period ended 30
September 2023 over the corresponding quarter.
Net interest income and net income from Islamic financing and investment activities grew
47.0% to AED 1.3 billion for the nine month period ended 30 September 2023 compared to
AED 855.4 million in the corresponding period. It was up 29.1% for the three month period
ended 30 September 2023 compared to the corresponding quarter.
Net fees, commission and other income grew 2.6% to AED 310.4 million for the nine month
period ended 30 September 2023 compared to AED 302.7 million in the corresponding
period.
Foreign exchange and derivatives income stood at AED 119.3 million for the nine month
period ended 30 September 2023 compared to AED 142.5 million in the corresponding
quarter.
Operating expenses increased by 30.3%, reflecting NBF's investments in its businesses,
systems, infrastructure and people. These investments include a set of digital initiatives
to further enhance the bank's focus on exceptional customer service through digital
adoption and innovation. Further, the impact of inflation and growth in resources continued
to affect our operating expenses. NBF's cost -to -income ratio stood at 30.0% compared to
29.4% in the corresponding period.
Movement in Operating Income
1,625.1
30- Sep -22 Net interest Net fees and Foreign exchange Loss from Other operating 30 -Sep -23 income and net commission and derivatives investments and income
income from income income Islamic
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Movement in Operating Expense
504.9
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expense amortization expenses
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iik*J1 &Li .1r (02,1 ,,S)1_,1.7j4A4 Page 2 of 5
Commercial Registration room. ileac Often Fujairah
Classified as: NBF External
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Operating income reached AED 1.7 billion for the nine month period ended 30 September
2023, up 27.7% compared to AED 1.3 billion in the corresponding period, reflecting the
benefit from increasing interest rates and enhanced asset and liability management.
Operating income growth of 24.1% was recorded for the three month period ended 30
September 2023 over the corresponding quarter.
Net interest income and net income from Islamic financing and investment activities grew
47.0% to AED 1.3 billion for the nine month period ended 30 September 2023 compared to
AED 855.4 million in the corresponding period. It was up 29.1% for the three month period
ended 30 September 2023 compared to the corresponding quarter.
Net fees, commission and other income grew 2.6% to AED 310.4 million for the nine month
period ended 30 September 2023 compared to AED 302.7 million in the corresponding
period.
Foreign exchange and derivatives income stood at AED 119.3 million for the nine month
period ended 30 September 2023 compared to AED 142.5 million in the corresponding
quarter.
Operating expenses increased by 30.3%, reflecting NBF's investments in its businesses,
systems, infrastructure and people. These investments include a set of digital initiatives
to further enhance the bank's focus on exceptional customer service through digital
adoption and innovation. Further, the impact of inflation and growth in resources continued
to affect our operating expenses. NBF's cost -to -income ratio stood at 30.0% compared to
29.4% in the corresponding period. -
Movement in Operating Income
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ak*LII &Li :r (02-11 ice. Page 2 of 5
Commercial Registration No 83 Hem Often Fujairah
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mmiilllliioonn iinn ccaappiittaall eexxppeennddiittuurree rreellaattiinngg ttoo tthhee aaddddiittiioonnss ooff pprrooppeerrttyy,, eeqquuiippmmeenntt aanndd
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N_. a_ tL io. nb9 aJ l I B C OA) nfA , o-A f 6 F uH jairah
Our Segmented Focus
NBF's business strategy continues to revolve around client relationships, supported by the
segmented approach adopted by the bank to serve its customer needs. This also helps in
building diversification and maintaining stable growth.
Operating income from Corporate and Institutional Banking and Business Banking
customers for the nine month period ended 30 September 2023 was up by 23.7% and
25.0%, respectively, compared to the corresponding period. Operating income from Retail
Banking increased by 15.1%, and Treasury, ALM & others have increased by 48.4%
compared to the corresponding period.
Segments' contribution to Operating Income
345.3 1 232.6
135.5 117.8
0
543.6 435.1
661.2 534.4
Sep- 23 Sep -22
Corporate and Institutional Banking Business Banking
Retail Banking Treasury, ALM and Others
Further, NBF Islamic recorded operating income of AED 111.0 million for the nine month
period ended 30 September 2023 compared to AED 99.4 million in the corresponding
period.
Expectation regarding the economy, sector and its impact on the Bank
NBF has delivered another very encouraging set of results demonstrating the on -going
impact of our business strategy, resilience in our core business and sound improvement
in asset quality. Good growth across our operating and net performance augurs well for
the results of the full year and beyond, despite the numerous challenges in the global
economy and the prevailing macroeconomic uncertainty.
Spurred by strong liquidity conditions underpinned by high oil prices, foreign capital inflows
and strong growth in oil and non -oil sectors, the UAE's economic growth forecast has been
revised for 2023 and 2024 to expand at 3.4 per cent and 3.7 per cent respectively.
Benefitting from this positive economic outlook, NBF is well placed through the strength
of its diversified balance sheet for continued growth in the current interest rate cycle.
Looking ahead, NBF will continue to focus on opportunities to enhance value creation,
diversify its revenue streams and progress the ongoing digital transformation to deliver
exceptional customer service, whilst ensuring its risk management and compliance
practices continue to adapt to meet the high expectations of its stakeholders.
nbf.ae +iv I Irrr +,ri9r :,j.sAi -9V I EO. VAE9.9 :C11$41 alp ejt; jLd.111 1., 010001 ;dine 4thszJI E p 0.1.1 ile911 ,2114
National Bank of Fujairah PJSC PO Box 887, Fujairah, UAE Tel: 600 565551 Outside UAE: -971 450 78499 Fax: -971 9222 7992 nbf.ae
L_5bJJ Page 4 of 5 80.46.11,....4-REAJI .1r
Commercial Regatta:lel No thee Cffce fearer
Classified as: NBF External
M
DEA
ni
serugiF
nbf
nbf Islamic
n .11'4 National Bank of Fujairah
Our Segmented Focus
NBF's business strategy continues to revolve around client relationships, supported by the
segmented approach adopted by the bank to serve its customer needs. This also helps in
building diversification and maintaining stable growth.
Operating income from Corporate and Institutional Banking and Business Banking
customers for the nine month period ended 30 September 2023 was up by 23.7% and
25.0%, respectively, compared to the corresponding period. Operating income from Retail
Banking increased by 15.1%, and Treasury, ALM & others have increased by 48.4%
compared to the corresponding period.
Segments' contribution to Operating Income
34513 232.6
135.5 117.8
543. 435.1
I
661.2 534.4
Sep- 23 Sep -22
Corporate and Institutional Banking Business Banking
Retail Banking Treasury, ALM and Others
Further, NBF Islamic recorded operating income of AED 111.0 million for the nine month
period ended 30 September 2023 compared to AED 99.4 million in the corresponding
period.
Expectation regarding the economy, sector and its impact on the Bank
NBF has delivered another very encouraging set of results demonstrating the on -going
impact of our business strategy, resilience in our core business and sound improvement
in asset quality. Good growth across our operating and net performance augurs well for
the results of the full year and beyond, despite the numerous challenges in the global
economy and the prevailing macroeconomic uncertainty.
Spurred by strong liquidity conditions underpinned by high oil prices, foreign capital inflows
and strong growth in oil and non -oil sectors, the UAE's economic growth forecast has been
revised for 2023 and 2024 to expand at 3.4 per cent and 3.7 per cent respectively.
Benefitting from this positive economic outlook, NBF is well placed through the strength
of its diversified balance sheet for continued growth in the current interest rate cycle.
Looking ahead, NBF will continue to focus on opportunities to enhance value creation,
diversify its revenue streams and progress the ongoing digital transformation to deliver
exceptional customer service, whilst ensuring its risk management and compliance
practices continue to adapt to meet the high expectations of its stakeholders.
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National Bank of Fujairah PJSC PO Box 887, Fujairah, UAE Tel: 600 565551 Outside UAE: -971 450 78499 Fax: -971 9222 7992 nbf.ae
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Takaful Rbu Dhabi National Takaful Co. p.s.c
Disclosure of the results of the Board of Directors meeting
Date 10-08-2023
Name of the Listed Company Abu Dhabi National Takaful Company - PSC-Takaful
Date and day of the meeting: Thursday 10-Aug-2023
The starting time of the meeting 11:30 am
The ending time of the meeting 01:30 pm
Number of board members present 7 members
Quorum achieved (%) 100%
- Approved the minute of the previous BOD meeting.
- Discussed and approved the Financial Statements of
Decisions / Resolutions of the meeting
the company for the period ended 30/06/2023
- Discussed and approved general operational issues.
The Name of the Authorized Signatory Osama Abdeen
Designation Chief Executive Officer
Signature and Date
10.8.2023 14:31 (UTC+4)
Company's Seal
___________________ Tokeful____
ER
EN______________________________________________________________________________________________________
Paid Up Capital UAE Dhs. 105,000,000/- T--r/H/TT4^to(v9
HEAD OFFICE DUBAI OFFICE AL AIN OFFICE
P.O.Box 35335 Abu Dhabi, United Arab Emirates P.O.Box 53389 Dubai, United Arab Emirates P.O.Box 64166 Al Ain, United Arab Emirates
Tel.: +971 2 4107700 Tel.: +971 4 2108700 Tel.: +971 3 7166700
Fax: +971 2 410780010 August 2023
2023 سطسغأ10
Disclosure & Compliance Section نيمرتحملا لاثتملاا و حاصفلإا مسق / ةداسلا
Market Operations & Surveillance ةباقرلاو تايلمعلا ةرادإ
Dept. ةيلاملا قارولأل يبظوبا قوس
Abu Dhabi Securities Exchange (ADX) ةدحتملا ةيبرعلا تاراملإا – يـــبظوبأ
Abu Dhabi, UAE
Greetings,
،،،دعبو ةبيط ةيحت
Subject: Virtual Meeting of the Board of
ةكرش ةرادإ سلجم عامتجا :عوضوملا :عوضوملا
Directors of Abu Dhabi Ports
نع دقعنيس يذلا ع.م.ش ئناوملل يبظوبأ
Company PJSC (“Company”) to
be held on Monday 14 August سطسغأ 14 قفاوملا نينثلاا موي دعب
2023
2023
We would like to inform you that the Board of
سلجم نأب مكديفن اننإف ،هلاعأ عوضوملا ىلإ ةراشلإاب
Directors of Abu Dhabi Ports Company PJSC
فوس )ةكرشلا( ع.م.ش ئناوملل يبظوبأ ةكرش ةرادإ
(the Company) meeting will be held via video
conference at 8pm on Monday 14 August 2023. سطسغأ 14 قفاوملا نينثلاا موي هل اعامتجا دقعي
The agenda of the meeting will include the
ةيصاخ مادختساب ءاسم ةنماثلا ةعاسلا مامت يف 2023
following:
:يلاتلا لامعلاا لودج يف رظنلل كلذو يئرملا لاصتلاا
1. Consider and approve the Company’s
ةكرشلل ةيلاملا تانايبلا ىلع ةقفاوملاو يف رظنلا .1
Q2 financial statements for the
.2023 ماعل يناثلا عبرلل
financial year 2023.
2. Other general matters relating to the
.اهعيراشمو ةكرشلا لامعأب ةقلعتم ةماع لئاسم .2
activities of the Company and its
projects.
Yours sincerely,
،،،ريدقتلاو مراتحلاا قئاف لوبقب اولضفتو
_____________________________________
ماعلا ينوناقلا راشتسملا – رسيلب ليميإ
Emil Pellicer – General Counsel
Copy to: Securities and Commodities Authority
ع لسلاو ةيلاملا قراولأا ةئيه/ةداسلا :ىلإ ةخسن | neutral |
M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
MANAGEMENT
DISCUSSION &
ANALYSIS
First 9 months of 2023 Financial Results
Abu Dhabi, UAE – 25 October 2023
1M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
ADI B delivers a record performance for the first nine months of
2023 with y-o-y net profit growth of 53% to AED 3.75 billion.
Quarterly net profit reached a new high of AED 1.424 billion in Q3 2023, up 41%
Record performance in the first nine months of 2023 versus same period last year driven
by strong underlying growth.
+48% -5.0 ppts +53% +49%
AED 6.7bn 32.6% AED 3.75bn AED 0.91
Revenues Cost to income ratio Net Profit Earnings Per Share
+25% +14% +28% +6.8 ppts
AED 184bn AED 118bn AED 152bn 26%
Total Assets Gross Customer Financing Deposits ROE
6.6%
+113 bps 157,000
4.48%
Net profit margin New customers joined ADIB NPA ratio
2M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
Abu Dhabi Islamic Bank reported a growth in Net Profit Impairments grew 62% to AED 571 million for the
of 53% for the first nine months of 2023 to AED 3.75 first nine months of 2023. Non-Performing asset ratio
billion from AED 2.5 billion in first nine months of 2022, improved to 6.6% lowest since Q1 2020 due to active
reflecting a consistent trend of strong growth. Net management of legacy portfolio coupled with strong
profit for Q3 2023 reached AED 1.4 billion with 41% underwriting standards whilst the Coverage ratio
growth versus Q3 2022. (including collaterals) improved by 9.0 percentage
points to 131.4%.
Revenue for the first nine months of 2023 improved by
48% to AED 6.7 billion compared to AED 4.5 billion last Total assets increased 25% to reach AED 184 billion,
year due to excellent income diversification mix and driven by 14% growth YoY in gross financing and 21%
strong growth across all business segments and growth in investments.
products. Funded income grew by 61% to AED 4.5
billion vs AED 2.8 billion in the corresponding period of
last year, driven by higher volumes and better margins. Customer deposits rose 28% to reach AED 152 billion
Non-funded income grew by 28% to reach AED 2.2 versus AED 138 billion in the corresponding period of
billion in the first nine months of 2023 versus AED 1.7 2022 driven mainly by 13% growth in Current and
billion in the corresponding period of last year driven by Savings Accounts (CASA) despite the high-rate
24% growth in fees and commissions. environment with CASA now comprising 66% of total
deposits.
Cost to income ratio was managed down with an
improvement of 5.0 percentage points to 32.6% versus ADIB maintained a robust capital position with a
37.6% in the corresponding period. This was Common Equity Tier 1 ratio of 13.36% and a
predominantly driven by growth in Income and total Capital Adequacy Ratio of 18.03%. The bank’s
enhanced productivity. liquidity position was healthy and comfortably within
regulatory requirements, with the advances to stable
funding ratio at 78.6% and the eligible liquid asset ratio
at 18.8%.
3M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
"ADIB achieved another record performance
in the first nine months of 2023, with net profit
growing 53% achieving a new high of AED 3.75
billion, surpassing what was achieved in the
full year of 2022.”
H.E Jawaan Awaidah Al Khaili
Chairman
157,000
New customers joined ADIB
“ADIB achieved another record performance in the ADIB's strong market position and digital drive has allowed
first nine months of 2023, with net profit growing 53% us to grow our market share by attracting approximately
achieving a new high of AED 3.75 billion, surpassing 157,000 new customers to ADIB in the first nine months of
what was achieved in the full year of 2022. ADIB's 2023 emphasizing the strength of our brand.
return on equity reached 26% reflecting the success of
the Group’s diversified business model and a healthy Amid global economic uncertainty, the UAE economy
and resilient local economy. Our ability to deliver continues to grow, benefiting from strong domestic activity
strong business momentum is the result of our solid and from foreign Inflows of capital. ADIB will continue to
capital position, diversification of our revenue work towards creating value for all our stakeholders as we
streams with double digit growth in both our funded aim to become the world’s most innovative Islamic bank.
and non-funded income. We are committed to playing a key role in driving further
economic growth and development across the region."
Our efforts have led us to be recognized as the best
bank In the UAE by Global Finance, and the Safest
Islamic Bank globally for the 2nd consecutive year.
This reflects our commitment to upholding the trust
of our customers and ensuring that we continue to
seamlessly provide for all their banking needs.
4M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
“ADIB's net profit surged to a new record on
the back of 48% growth in revenues to AED 6.7
billion due to an increase in transaction
volumes and improved margins led by an
efficient funding base and higher yields."
Nasser Abdulla Al Awadhi
Group Chief Executive Officer (GCEO)
26%
ROE
(Return on Equity)
“ADIB's net profit surged to a new record on the back of We have delivered continued success in our digital banking
48% growth in revenues to AED 6.7 billion due to an where 80% of ADIB customers actively using the bank's
i ncrease in transaction volumes and improved margins digital platforms, underlining our commitment to
l ed by an efficient funding base and higher yields. providing convenient and innovative banking solutions.
A DIB's market-leading franchise has continued to attract We have achieved a significant milestone towards
new deposits adding AED 33 billion of deposits including Environmental, Social, and Governance (ESG) excellence
growing our low-cost Current and Savings Accounts by with the launch of a comprehensive ESG strategy, designed
13%, which helped us in maintaining one of the lowest to strengthen our sustainable banking agenda for the next
costs of fund in the region. Net customer financing (FX three years.
adjusted) was up 6% Year to date, primarily driven by
G REs, Corporates and Retail. We are entering the last quarter of 2023 with a strong
financial position, strong capital and liquidity ratios, stable
W e ended the quarter with a CET1 ratio of 13.36%, as we asset quality, and improved returns. this will enable us
a ctively managed our RWA to improve the returns we capture business opportunities and identify new growth
generate for our shareholders. areas."
5M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
“In the first nine months of 2023, ADIB was
able to sustain the strong business and
financial momentum while maintaining a
strong balance sheet with healthy liquidity,
asset quality and capital ratios, thereby laying
solid foundations for future growth.”
Mohamed Abdelbary
Group Chief Financial Officer (GCFO)
3.75bn
a net profit
53%
“Our record profitability reflects improvements in the Our cost to income ratio improved to 32.6% reflecting
underlying operating performance across all business stronger income and enabling continued acceleration of
li nes. In the first nine months of 2023, ADIB was able to investment for growth.
s ustain the strong business and financial momentum
w hile maintaining a strong balance sheet with healthy Despite high rates, asset quality remained strong with an
li quidity, asset quality and capital ratios, thereby laying Improvement in our Non-Performing asset ratio to 6.6%
solid foundations for future growth. which is the lowest since Q1 2020 due to active
management of legacy portfolio coupled with strong
underwriting standards.
We have seen a 28% growth in customer deposits and
14% growth in gross customer financing year-on-year.
With its robust fundamentals, strong financial position
Funded income is up 61% year-on-year on an improved
fi nancing and deposit mix with higher rates feeding
and assets surpassing AED 184 billion, we believe that
ADIB is well positioned to end the year with solid results,
th rough to margins. Non-funded income is up 28% year-
paving the way to further enhance shareholders' return."
o n-year from increased card transactions, coupled with
g rowth in foreign exchange and investment income
underlining our strategic focus on income diversification.
6M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
GROUP FINANCIAL REVIE W
> Income statement
YTD Sept YTD Sept
AED (Mn) Q3 2023 Q3 2022 % %
2023 2022
Gross revenue from funds 2,418 1,279 Δ+89% 6,656 3,120 +Δ113%
Distribution to depositors (841) (147) +471% (2,150) (318) +575%
Net revenue from funds 1,577 1,132 +39% 4,506 2,802 +61%
Investment income 246 181 +35% 700 602 +16%
Fees, commissions income, net 370 260 +42% 1,038 839 +24%
Foreign exchange income, net 126 103 +22% 325 268 +21%
Other income 112 2 +6342% 125 5 +2253%
Non-funded income 853 546 +56% 2,188 1,715 +28%
Total operating income 2,430 1,678 +45% 6,694 4,516 +48%
Total operating expenses before impairment charge (740) (539) +37% (2,185) (1,699) +29%
Provision for impairment (202) (125) +61% (571) (352) +62%
Profit before zakat and tax 1,488 1,014 +47% 3,938 2,465 +60%
Zakat and tax (64) (4) +1563% (188) (13) +1347%
Profit after zakat and tax 1,424 1,010 +41% 3,750 2,452 +53%
EPS (AED) – YTD 0.91 0.61 +49%
Net profit margin – YTD 4.48% 3.35% +1.1ppts
Cost to income ratio - YTD 32.6% 37.6% -5.0ppts
Cost of risk – YTD 0.50% 0.38% +12bps
ROAE – YTD 26.4% 19.6% +6.8ppts
ROAA – YTD 3.02% 2.33% +69bps
Group net profit grew 53% in the first nine months of 2023 to AED 3.75 billion compared to AED 2.5 billion in the
corresponding period of 2022. This was driven mainly by solid growth in revenues compared to the corresponding
period of the previous year.
Revenues increased by 48% in the first nine months of 2023 to AED 6.7 billion versus AED 4.5 billion in the
corresponding period of 2022, primarily driven by double digit growth in funded income and non-funded Income.
Funded income rose 61% to reach AED 4.5 billion supported by higher volumes and rising rates with 25% growth
in average earning assets thereby increasing the net profit margin to 4.48% as compared to 3.35% in the
corresponding period in 2022, despite an increase in the cost of funding. ADIB preserves one of the highest margins
in the market, supported by one of the lowest cost of funds in the market.
Non-funded income increased by 28% to AED 2.2 billion for the first nine months of 2023 driven by a 24% increase
in fees and commissions income. Non-funded income represents 33% of total income, underlining the strategic
focus on revenue diversification.
Fees and commissions income was up 24% year-on-year driven by card related fees and income from trade finance.
Overall revenues were supported by growth in new customers of approximately 157,000 during the first nine
months of 2023, evidencing ADIB’s long-term commitment to its customers and continuous efforts to deliver
superior customer service.
7M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
Strategic and transformation investments and volume-related expenses resulted in the increase of 29% in
operating expenses to AED 2.2 billion versus the corresponding period of 2022, that was partially offset by the
benefit of productivity savings. Despite this, there was an overall improvement in the cost-to-income ratio of 5.0
percentage points to 32.6%.
The net impairment charge for the first nine months of the year increased by 62% to AED 571 million. The cost of
risk saw a slight increase of 12 basis points to 0.50%. The provision coverage of non-performing financing (including
collaterals) improved by 9.0 percentage points to 131.4%.
> Balance Sheet
AED (Mn) 30 Sept 2023 30 Sept 2022 %
Cash and balances with central banks 27,472 18,233 +51%
Δ
Due from financial institutions 11,027 2,170 +408%
Customer financing, net 112,595 98,240 +15%
Investments 23,000 19,072 +21%
Investment in associates 816 1,722 -53%
Investment and development properties 1,980 1,992 -1%
Other assets 7,233 5,780 +25%
Total assets 184,124 147,209 +25%
Due to financial institutions 2,954 3,198 -8%
Depositors’ accounts 151,545 118,823 +28%
Other liabilities 4,926 4,014 +23%
Total liabilities 159,424 126,036 +26%
Share capital 3,632 3,632 -
Retained earnings 10,366 7,594 +37%
Other reserves 4,928 5,181 -5%
Equity attributable to shareholders of the bank 18,926 16,407 +15%
Tier 1 sukuk 4,754 4,754 -
Non - controlling interest 1,019 12 +8720%
Equity attributable to equity holders of the bank 24,699 21,173 +17%
Customer financing, gross 117,634 103,202 +14%
Non-performing financing 7,762 8,597 -10%
NPA ratio 6.6% 8.3% -1.7ppts
NPA coverage ratio 69.6% 67.8% +1.8ppts
NPA coverage ratio with collaterals 131.4% 122.4% +9.0ppts
Risk weighted assets 134,300 119,432 +12%
Common Equity Tier 1 Ratio 13.36% 12.81% +55bps
Tier 1 Ratio 16.90% 16.79% +11bps
Capital Adequacy Ratio 18.03% 17.90% +13bps
Financing to deposit ratio 74.3% 82.7% -8.4ppts
Advances to stable fund ratio (ASFR) 78.6% 86.1% -7.5ppts
Eligible Liquid Asset Ratio (ELAR) 18.8% 15.9% +2.9ppts
8M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
Total assets reached AED 184.1 billion as of 30 September 2023, an increase of 25% from 30 September 2022,
driven mainly by a growth in net financing, growth in cash and balances with central bank, and growth of the
investment’s portfolio. This was funded by sizeable deposit inflows.
Gross customer financing increased 14% to AED 117.6 billion from 3% growth in wholesale financing across
government and public sector enterprises and corporates while retail financing portfolios grew by 11%.
The bank’s investment portfolio increased 21% on 30 September 2023 to AED 23.0 billion.
Customer deposits amounted to AED 152 billion as of 30 September 2023, up 28% from 30 September 2022 as
CASA deposits increased by 13% to AED 99 billion comprising 66% of total customer deposits.
Non-performing financing totaled AED 7.8 billion as of 30 September 2023 compared to AED 8.6 billion as of
30 September 2022.
Non-performing financing ratio improved to 6.6% versus 8.3% as of 30 September 2022.
ADIB continued to maintain a healthy liquidity position with an advance to stable funding ratio at 78.6% compared
with 86.1% on 30 September 2022, while the eligible liquid asset ratio was 18.8% as of 30 September 2023 versus
15.9% at 30 September 2022.
The bank further strengthens its capital position with the Common Equity Tier 1 ratio at 13.36%, as compared to
12.81% In Q3 2022 on the back of strong earnings and ongoing optimization initiatives. Capital adequacy ratio of
18.03% as of 30 September 2023, exceeding regulatory requirements prescribed by the UAE Central Bank.
9M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
SEGMENTAL PERFORMANCE REVIEW
Retail Banking Group
> Income Statement
AED (Mn) YTD Sept 2023 YTD Sept 2022 %
Funded income 3,110 2,126 +46%
Δ
Non-funded income 501 427 +18%
Total operating income 3,612 2,553 +41%
Operating expenses excluding impairments (1,476) (1,355) +9%
Impairment charge (134) (65) +107%
Profit before zakat and tax 2,001 1,133 +77%
Tax and Zakat - - -
Profit after zakat and tax 2,001 1,133 +77%
Cost to income ratio 40.9% 53.1% -12.2ppts
Cost of risk 0.30% 0.16% +13bps
> Balance Sheet
AED (Mn) 30 Sept 2023 30 Sept 2022 %
Financing, gross 58,427 52,721 +11%
Δ
Depositors’ accounts 88,872 81,178 +9%
ADIB’s Retail Banking Group (‘Retail Banking’), is the leading bank for UAE nationals and a critical growth engine for
ADIB. Retail Banking delivered a strong performance, generating AED 2.0 billion of net profit in the first nine months
of 2023, a 77% increase over the corresponding period last year.
In addition, Retail Banking continued strengthening their customer propositions and improving channel productivity,
resulting in improved sales momentum for cards and 11% growth in gross financing to AED 58.4 billion as of 30
September 2023.
Based on encouraging financing growth, revenue for Retail Banking increased 41% to AED 3.6 billion, on the back
of growth in funded income.
Operating expenses in the first nine months of 2023 grew slightly, reflecting the inflationary trend, while the Bank
undertook cost optimisation initiatives, and continued focus on process simplification and automation to improve
efficiency and deliver better customer experiences.
The strategic focus on delivering excellent customer experience enabled Retail Banking to expand its customer base
by approximately 157,000 customers in the first nine months of 2023.
Deposits also grew by 9%. This is a testament to the Bank’s strong UAE national and Emirati-focused strategy, which
is at the core of the Retail Banking business. This was driven by CASA growth of 13%.
On digital, the Bank continued to introduce industry-leading digital capabilities, redesign the client experience, and
enabled customers to bank anytime, anywhere, on their preferred channels. The provision of the new digital remote
sales platform allowed customers to interact remotely, driving significant sales across consumer finance products.
10M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
W holesale Banking Group
> Income Statement
AED (Mn) YTD Sept 2023 YTD Sept 2022 %
Funded income 720 534 +35%
Δ
Non-funded income 283 245 +15%
Total operating income 1,003 779 +29%
Operating expenses excluding impairments (208) (205) +1%
Impairment charge (225) (153) +46%
Profit before zakat and tax 570 421 +36%
Tax and Zakat (15) (9) +77%
Profit after zakat and tax 555 412 +35%
Cost to income ratio 20.8% 26.3% -5.6ppts
Cost of risk 0.59% 0.47% +12bps
> Balance Sheet
AED (Mn) 30 Sept 2023 30 Sept 2022 %
Financing, gross 45,072 43,775 +3%
Δ
Depositors’ accounts 32,523 24,296 +34%
The Wholesale Banking Group (‘WBG’) saw an increase in net profit of 35% driven by higher volume and the benefit
of rising rates.
Total operating income grew 29% reflecting an economic rebound and improvements in funded income.
Gross customer financing grew by 3% to AED 45.1 billion, as a result of a rebound in economic activity and market
sentiment, as well as strong momentum in deal execution. This was driven by demand from existing large corporates
as well as new to bank clients.
The Global Transaction Banking (GTB) team continued to make progress on its transformation journey, offering
digitally enabled and innovative solutions to clients.
WBG’s impairment charge for the first nine months of the year amounted to AED 225 million, a 46% increase
relative to the corresponding period of 2022.
11M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
Treasury
> Income Statement
AED (Mn) YTD Sept 2023 YTD Sept 2022 %
Funded income (695) (193) -260%
Δ
Non-funded income 944 649 +46%
Total operating income 250 456 -45%
Operating expenses excluding impairments (33) (30) +9%
Impairment charge (77) (20) +282%
Profit before zakat and tax 140 405 -65%
Tax and Zakat - - -
Profit after zakat and tax 140 405 -65%
Cost to income ratio 13.2% 6.6% +6.5ppts
Investment Yield 3.6% 2.5% +1.0ppts
> Balance Sheet
AED (Mn) 30 Sept 2023 30 Sept 2022 %
Investments 23,000 19,072 +21%
Δ
Depositors’ accounts 1,134 4,441 -74%
ADIB’s Treasury department saw a decline of 65% in net profit to AED 140 million during the first nine months of
2023 due to a reduction in the revenue for the period by 45% to AED 250 million. This was primarily due to adverse
market conditions, partially offset by fee income generation from customers’ activities.
12M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
Strategy and
Outlook
Strategy
ADIB Strategy defined the bank’s renewed purpose of becoming a lifelong partner for our clients, community, and
colleagues. Furthermore, ADIB’s vision was revamped to be the world’s most innovative Islamic bank.
The bank has delivered the below strategic initiatives under the 4 strategic pillars:
Continuous Innovation
ADIB launched various products that enabled a growth in market share:
Istiqrar: ADIB launched UAE’s first long-term, fixed-rate home finance. This unique product offers customers
a consistent, fixed monthly instalment throughout the chosen tenor rate, eliminating any variations or fluctuations.
Cashback Card: ADIB launched its new Cashback Visa Covered Card signifying an expanded role for cards in the
bank’s retail strategy. The new card is considered one of the industry’s best cashback cards and offers customers
the opportunity to earn 4% cash rewards when they use the card across a wide range of daily spending categories.
Yusr Salary Advance: Allows customers to avail their pay cheque in advance instantly with a Murabaha structure-
based fee. The new feature can be accessed through the mobile banking app and branches across the UAE. ‘Yusr’
is designed to help existing ADIB salary transfer customers, both UAE Nationals and expatriates, to manage their
financials and fulfil their short-term funding needs. This product aims to provide convenience and assist customers
to access up to 50% of their salaries.
SME Instant Account Opening: ADIB became the first bank in the UAE to provide small and medium-sized
enterprises (SMEs) with convenient remote account opening services through a mobile app by deploying Emirates
Face Recognition (EFR) technology. This new feature allows businesses to apply for a business account without the
need to visit a branch or submit physical documents or signatures. Through this technology, ADIB can perform highly
secure identity verification before opening a new account for businesses in less than 24 business hours.
50% cashback: ADIB launched a unique campaign that rewards customers for consolidating their banking with ADIB.
The first-of-its-kind campaign rewards customers with a one-time bonus of 50% of their monthly salary when they
transfer their finance (personal or home finance) and salary to ADIB and obtain one of the ADIB Covered Cards,
such as Emirates Skywards, Etihad Guest, Etisalat Gold, Platinum & Signature, or Cashback cards.
Darb services: ADIB launched a top-up service of Darb accounts through the direct payment feature via the mobile
application or online banking services of the Abu Dhabi Islamic Bank. the recharging the Darb card account through
the application as a valued addition.
13M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
Segment Focused
ADIB continued to build on its existing strength in the Emirati retail segment while attracting and developing new
business segments where the bank can grow profitably. In this respect, ADIB launched propositions that support
Emirati customers across all financial stages in their lives and welcomed 157,000 customers.
Digital excellence
Digital remains at the heart of ADIB’s 2025 strategy, and the bank strives to become a digital-first financial institution.
The number of digitally active customers has increased steadily over the past year. Currently 80% customers are
digitally active.
Key highlights of ADIB’s progress on digitalization and innovation include the following:
ADIB’s mobile app is top ranked on the UAE App store.
54% of Personal Finance customers are on-boarded digitally.
New features were added to the Mobile app to help increase customer usage and adoption – these include
IPO subscription, push notification, Consumer Protection Rights, and additional security features for transfers.
Sustainable Future
ADIB is a regional sustainability leader (MSCI ESG rating of ‘A’), and a constituent of MSCI ESG Leaders index.
ADIB finalized its sustainability and ESG frameworks.
ADIB continued to play a crucial role in helping to deliver the region’s sustainable finance agenda facilitating
around USD1.7 billion worth of sustainable projects.
ADIB has achieved an upgrade to its environmental, social, and governance (ESG) risk score by Sustainalytics,
one of the world's leading ESG rating agencies. ADIB's overall Sustainalytics ESG risk score has improved from
34.25 in 2022 to 29.6 in 2023, reflecting a significant leap that transitioned ADIB from the 'high risk' category
to the 'medium risk' category. This achievement underscores the bank’s strong commitment to ESG principles
and its ongoing efforts to effectively manage risks. The ratings are measured on a scale from 0 to 100, with
lower scores indicating a reduction in risk.
ADIB leads the way in Emiratization by significantly investing in upskilling, reskilling, and developing Emiratis
through international training and development programs.
Outlook
The outlook for the GCC remains positive despite ongoing concerns over a global economic slowdown. Higher oil prices
have pushed GCC budgets into surplus with expectation for the UAE GDP to grow by more than 3.4% in 2023. Liquidity
in the UAE remains strong, with higher oil prices expected in the rest of 2023 which will help in deposit inflows.
14M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
2023 Awards List
Awards Categories
Sheikh Khalifa Excellence Awards Diamond Category
MEED MENA Banking Excellence MENA Islamic Finance
Awards 2023 Bank of the Year
Bonds & Sukuk Middle East Islamic Syndication
Awards 2023 of the Year
Bonds & Sukuk Middle East Global Sovereign Sukuk
Awards 2023 Deal of the Year
Bonds & Sukuk Middle East Real Estate Finance
Awards 2023 Deal of the Year
Global finance Best Bank in the UAE
Global Finance Safest Islamic Bank Globally
Best Islamic bank in the UAE and
Global Finance
Egypt
Digital Banker Best Islamic Retail Bank
Global Finance Best Payment Solutions
Global Finance Best Islamic bank for ESG
Banker FT Best Private Bank service in UAE
15M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
About ADIB
A DIB is a leading bank in the UAE with more than AED 184 billion in assets. The bank also offers world-class online,
m obile and phone banking services, providing clients with seamless digital access to their accounts 24 hours a day.
A DIB provides Retail, Corporate, Business, Private Banking and Wealth Management Solutions. The bank was
e stablished in 1997 and its shares are traded on the Abu Dhabi Securities Exchange (ADX).
A DIB has a strong presence in six strategic markets: Egypt, where it has 70 branches, the Kingdom of Saudi Arabia, the
United Kingdom, Sudan, Qatar, and Iraq.
Named World’s Best Islamic Bank by The Financial Times - The Banker publication, ADIB has a rich track record of
innovation, including introducing the award-winning Ghina savings account, award-winning co-branded cards with
Emirates airlines, Etihad and Etisalat and a wide range of financing products.
ADIB Investor relations Mobile application
Please download the ADIB Investor relations dedicated mobile app
available on both Apple and Google play stores. The application
will keep you up to date with the latest developments - from latest
share prices and press releases to investor days, financial results,
and our document library. You can view stock exchange
announcements, presentations, annual and quarterly reports, and
interact with key data onscreen.
16M anagement Discussion & Analysis – First 9 months of 2023 Financial Results
For media information, please visit www.adib.ae or contact:
Lamia Hariz
Head of Corporate Communications, Marketing ESG & Investor Relations
Email: lamia.hariz@adib.com
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17 | positive |
ADNOC Classification: Public
ADNOC Drilling Announces Strong Results
for the Nine Months to September 2022 with
Significant Net Profit Growth of 24% to $568
Million
Robust financial and operating performance continues into
the third quarter for ADNOC Drilling as it celebrates first
anniversary since listing on ADX
Industry-leading fleet utilization supports nine-month
revenue growth of 15% year-on-year, to reach $1.94 billion
Continued growth is underpinned by margin-enhancing fleet
expansion program, with nine new rigs added so far in 2022
Abu Dhabi, UAE – 14 November 2022: ADNOC Drilling Company PJSC (ADNOC Drilling or
the Company) (ADX symbol: ADNOCDRILL / ISIN: AEA007301012) today announced its
financial results for the nine months and third quarter ended 30 September 2022.
ADNOC Drilling’s net profit for the nine-month period grew significantly, by 24% to $568
million, while revenue increased 15% to $1.94 billion compared to the same period last year.
Nine-month EBITDA was $879 million for 2022, up 12% year-on-year, at an industry-leading
EBITDA margin of 45.3%.
Year-on-year revenue growth was led by the Onshore segment, with ADNOC Drilling
positioned as a key enabler of ADNOC’s ambitious program to significantly boost production
capacity. The Company’s Oilfield Services (“OFS”) segment equally achieved very strong
year-on-year gains.
Third quarter revenue grew 17% year-on-year to $671 million, driven primarily by the Onshore
and OFS segments. Third quarter EBITDA increased by 5% year-on-year to $299 million for
the period. Net profit for the third quarter grew by 6% year-on-year to $189 million.
Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling,
commented: “Our strong nine-month results were underpinned by the consistent execution of
our strategic priorities as we continue to prove our value as a reliable and efficient operator
and fast-growing drilling leader. Our accelerating rig fleet expansion program is a prime
example. Supporting the UAE’s long-term production capacity targets, the program is already
paying off as new rigs commence operations. A significant number of additional rigs are
scheduled to come onstream in the fourth quarter, further boosting our financial and operating
performance as we head towards 2023 and continued shareholder value creation.ADNOC Classification: Public
“Sustainability continues to be a major focus as we deliver on our committment to reduce and,
where possible, eliminate emissions from our operations. We are also partnering with our
customers to support their sustainability goals. An example is the recently delivered 50,000ft
extended reach well for ADNOC Offshore in the giant Zakum field, tapping into an
undeveloped part of the reservoir. This well helps unlock an additional production capacity of
15,000 barrels per day and achieves this without the need for further costly infrastructure and
with minimal environmental footprint, and is the world’s longest extended reach well. Such
pioneering drilling engineering achievements, reinforce ADNOC Drilling's prime position in the
drilling and completion services industry.”
On 3 October 2022, ADNOC Drilling celebrated one year since listing on the Abu Dhabi
Securities Exchange (ADX). At the time, the initial public offering was the largest listing in the
history of the exchange and was 31 times oversubscribed. Since listing, the Company has
delivered a total shareholder return of 53.7%1 as at 30 September 2022.
Al Seiari concluded: “As we celebrate our first anniversay as an ADX-listed company, we are
proud of the value we have created for shareholders, with our progressive dividend policy
having distributed $666.25 million to investors since listing. At the same time, we have added
more than $13 billion of contract backlog, achieved strong top- and bottom-line growth, and
expanded our owned rig fleet from 95 to 108. We are excited for the year ahead, and look
forward to continued growth in 2023 and beyond.”
Strong Growth for Onshore and OFS; Offshore Performance Stable
• Onshore: Revenue for the nine-month period was $1,074 million, up 27% year-on-
year, largely driven by new rigs joining the fleet. 3Q 2022 revenue was $372 million,
up 33% year-on-year.
• Offshore Jackup: Revenue for the nine-month period was $431 million, broadly flat
versus the prior year. 3Q 2022 revenue was $143 million and, due to planned
maintenance, down 9% year-on-year. During the third quarter, ADNOC Drilling was
awarded two contracts at a combined value of $3.4 billion to provide eight jack-up rigs
to ADNOC Offshore.
• Offshore Island: Revenue for the nine-month period was $153 million, similar to 2022.
3Q 2022 revenue of $52 million was down 14% year-on-year due to a one-off claim
concluded and recognised in 3Q 2021. During the third quarter, ADNOC Drilling was
awarded a $711 million contract for the provision of four Island Drilling Units for up to
ten years for ADNOC’s Hail and Ghasha Development Project.
• Oilfield Services (OFS): The OFS segment performed very well in the nine-month
period, with revenue of $282 million, up 22% year-on-year, driven by higher activity
from continued expansion, with healthy margin development. 3Q 2022 revenue was
$103 million, up 40% year-on-year. During the third quarter, the OFS business was
1 Source: BloombergADNOC Classification: Public
awarded contracts totalling $1.3 billion by ADNOC for the Hail and Ghasha
Development Project, to provide integrated drilling services and fluids for up to ten
years. In addition, OFS was awarded a $23 million contract by ADNOC Onshore for
up to five years’ supply of production chemicals; as well as a four-year $2 million well
head maintenance contract by Al Dhafra Petroleum.
The Company has accelerated its rig fleet expansion program during the course of 2022, and
in the third quarter signed two sale and purchase agreements to acquire a further three
premium jack-up drilling units for $210 million.
Key Financial Metrics
3Q 3Q % 9M 9M %
USD Millions
2022 2021 Change 2022 2021 Change
Revenue 671 571 17% 1,940 1,694 15%
EBITDA 299 285 5% 879 785 12%
Net Profit 189 178 6% 568 460 24%
Earnings per share
0.0118 0.0112 5% 0.0355 0.0287 24%
(USD/share)
Capital Expenditure2 224 171 31% 508 454 12%
Cash from Operating
317 242 31% 1,135 721 58%
Activities3
-ENDS-
About ADNOC Drilling
ADNOC Drilling, listed on the Abu Dhabi Securities Exchange (ADX symbol “ADNOCDRILL”;
ISIN AEA007301012), is the largest drilling company in the Middle East Operating and owns
one of the largest multi-discipline drilling fleets in the world. The Company is a critical link in
ADNOC’s upstream business, as ADNOC continues to move towards its oil production
capacity targets and enables gas self-sufficiency for the UAE. ADNOC Drilling incorporated
Integrated Drilling Services into its portfolio in 2018 and now offers start-to-finish wells and
services that encompass the entire drilling value chain. To find out more,
visit: www.adnocdrilling.ae
For media inquiries please contact:
Iain Cracknell
Vice President, Corporate Communications
+971 2 698 3614
For investor inquiries please contact:
Nicolas Robert
Vice President, Investor Relations
+971 2 698 3499
2 Cash from Operating Activities – Net profit for the period adjusted for non cash items and working capital changes as per cash
flow statement.
3 Capital expenditure – Payments for purchase of property and equipment as per cash flow statement. | positive |
Aramex reports stable revenues with Gross Profit increase of
4% YoY in Q1 2023 amid global headwinds
• Amid softening of global shipment volumes, Aramex continued to deliver a resilient performance
in the first quarter of 2023, while making further progress in executing its strategy. Revenue
totaled AED 1.43 billion, down marginally by 1% YoY, outperforming global peers.
• Gross Profit improved 4% YoY to AED 358 million in Q1 2023, driven by consolidated growth in
the International Express business – with the MyUS acquisition providing a further boost. This
reflects Aramex’s consistent investment in efficiency maximizing initiatives and cost optimization
through the economic cycle.
• EBITDA for Q1 2023 decreased 9% to AED 153 million, and Net Profit was AED 24 million,
compared to AED 47 million in Q1 2022. The YoY decrease in Net Profit is due to a mix of factors,
including currency devaluation in certain markets, interest expenses associated with the MyUS
acquisition and in line with Aramex’s strategy to leverage the balance sheet, as well as the
softening at topline flowing through to the bottom line.
• Freight-Forwarding and Logistics and Supply Chain Solutions Businesses performed strongly
with 17% and 23% increases in Gross Profit respectively, strengthening the mix of quality revenues
across the Group. International Express also improved Gross Profit by 3%, while Domestic
Express declined by 6% due to domestic revenue decline of 4% which is attributed to FX impact.
• Despite inflationary pressures, Selling, General and Administrative Expenses (SG&A) organic
structure- which excludes MyUS, as a percentage of revenue remains stable. While consolidated
SG&A increased by 6% YoY due to the addition of MyUS, the organic SG&A declined by 3%,
reflecting the Group’s agility in cost management. Tight cost control and continued investment
is expected to improve returns in the second half of the year.
• Aramex’s strategically balanced geographical presence enabled the Company’s home markets
to continue their strong performance, with the GCC accounting for 39% of total revenues, while
also supporting solid revenue growth in Europe and North American outbound markets.
• Robustly positioned with a healthy cash balance and low leverage with Net Debt-to-EBITDA ratio
at 2.3x. Geographic and business diversification continued to support resilience in margins and
performance vs peers, alongside strong road network and operational efficiencies.
• In line with the five-year strategy, the Group is focused on mid- and long-term growth, while
continuing to attract talent and champion investments in innovation and technology.Dubai, UAE – Thursday, 11 May 2023: Aramex (DFM: ARMX) a leading global provider of
comprehensive logistics and transportation solutions, today announced its financial results for the First
Quarter (“Q1”) ending 31st March 2023.
Q 1 Q 1 % Cha nge
In Thousands of UAE Dirhams
20 23 20 22 (YoY)
Revenues 1,431,496 1,448,932 (1%)
Gross Profit 358,000 344,100 4%
Gross Profit Margin 25.0% 23.7%
EBIT 63,000 75,006 (16%)
EBIT Margin 4.4% 5.2%
EBITDA 153,163 168,669 (9%)
EBITDA Margin 10.7% 11.6%
Net Profit 23,909 47,302 (49%)
Net Profit Margin 1.7% 3.3%
Financial Performance Commentary
Aramex’s Q1 2023 Revenues declined marginally by 1% YoY to AED 1.43 billion, reflecting the robustness
of its revamped operating model, amid global headwinds. Revenues were driven by stable performance
in International Express and the resilience of the Freight-Forwarding, and Logistics and Supply Chain
Solutions Businesses. Revenue continued to be impacted by currency fluctuations, inflationary
pressures, and normalization of worldwide shipping flows. However, despite softening revenues, the
Company demonstrated resilience in volumes and improvements in margins.
For the Q1 2023 period, Gross Profit was up 4% to AED 358 million compared to AED 344 million in Q1
2022, while the corresponding Gross Profit Margin for Q1 2023 was reported at 25%. The Selling,
General and Administrative Expenses (SG&A) costs for the organic business, which excludes MyUS,
declined 3% YoY, reflecting the Company’s disciplined cost optimisation drive, while consolidated
Group SG&A costs increased by 6% mainly due to the addition of MyUS. The Group’s SG&A organic
structure as a percentage of revenue has remained stable.
Net Profit for Q1 2023 declined by 49% YoY to AED 24 million due to a mix of factors, including currency
devaluation in certain markets, interest expenses associated with the MyUS acquisition and in line with
Aramex’s strategy to leverage the balance sheet, as well as the softening at topline flowing through to
the bottom line.
Due to some negative FX and devaluation impact in some markets, Aramex moved swiftly to hedge
exposures and move into more US Dollar-denominated contracts.
Aramex maintained a strong balance sheet position with Net Debt-to-EBITDA ratio of 2.3x and a
healthy cash balance of AED 722 million as of 31 March 2023.
Othman Aljeda, Chief Executive Officer, Aramex, said: “In a quarter when our industry globally
continued to face headwinds from cost inflation, base rate rises, softening shipment volumes and FX
fluctuations, we are proud to present a stable and resilient financial and business performance for the
first three months of 2023. We continued to both drive revenue quality and benefit from our sustained
investment in efficiency, and our performance vs industry means we are confident in unlocking the
potential of our rebalanced business model.
Three of our four business lines increased Gross Profit Year-on-Year, and we maintained a stable Profit
Margin in our Domestic Express business, due to our relentless focus on cost control and improvementsin productivity. We maintain our commitment to invest in optimization measures across the economic
cycle, including automation of shipments sorting process which enables us to boost operational
productivity; and the newly launched Enterprise Automation & Robotic Process Automation Centre of
Excellence that is focused on digitalizing the overall enterprise for higher efficiency levels within the
support functions as well as across our operations.
The continued growth in the GCC economies, and the expectation that inflationary pressures around
the world may peak and then decline significantly show some signs of optimism towards the end of the
year. We believe the key differentiator in the months ahead will be our ability to invest in technology,
along with our geographic and business line diversification which offers competitive advantage.
We will continue to improve the efficiency of our services, enhancing customer experience,
strengthening road networks, improving resourcing and making other targeted operational
improvements across our four products – putting us in a strong position to capture market share and
deliver long-term value for our shareholders.”
Business Performance
International Express (Including Shop & Ship and MyUS)
Q1 Q1 % Change
In Thousands of UAE Dirhams
2023 2022 (YoY)
Revenues 566,581 558,976 1%
Gross Profit 183,795 177,782 3%
Gross Profit Margin 32.4% 31.8%
International Express Shipment Volumes
Q1 Q1 % Change
In millions of shipments
2023 2022 (YoY)
Total Number of Shipments 5.4 5.3 1%
International Express reported stable consolidated Revenue of AED 567 million in Q1 2023, reflecting
the additional volume from MyUS and attractive margins in Aramex’s Parcel Forwarding Business, which
includes MyUS and Shop & Ship. Organic Revenue (excluding MyUS) witnessed a softness Year-on-
Year due to a change in customer mix.
Reported Gross Profit for Q1 2023 was AED 184 million, a YoY increase of 3%. The corresponding Gross
Profit Margin was maintained at 32% due to a number of factors, including improvements in linehaul
costs and other cost optimization measures.
Domestic Express
Q1 Q1 % Change
In Thousands of UAE Dirhams
2023 2022 (YoY)
Revenues 361,652 376,641 (4%)
Gross Profit 87,637 92,767 (6%)
Gross Profit Margin 24.2% 24.6%
Domestic Express Shipment Volumes
Q1 Q1 % Change
In millions of shipments
2023 2022 (YoY)
Total Number of Shipments 24.6 25.0 (2%)Domestic Express Q1 2023 Revenue declined by 4% to AED 362 million due to FX impacts in Egypt,
Lebanon, South Africa and certain MENAT countries, as well as a revenue decline in Oceania, where a
restructuring plan is in progress. This was partially offset by an increase in domestic revenues from the
GCC and prudent cost management. Gross Profit for the period was AED 87.6 million, a slight decrease
of 6%. However, the corresponding Gross Profit Margin remained stable at 24% compared to the same
period last year, reflecting the Company’s success in operational efficiencies especially at the “last mile"
as a result of the Company’s automation efforts- which further enhanced courier productivity; and a
doubling of Aramex’s Pick-Up and Drop-Off (PUDO) network in Q1 2023.
Freight-Forwarding
Q1 Q1 % Change
In Thousands of UAE Dirhams
2023 2022 (YoY)
Revenues 385,432 391,133 (1%)
Gross Profit 61,151 52,053 17%
Gross Profit Margin 15.9% 13.3%
Freight-Forwarding Shipment Volumes
Q1 Q1 % Change
2023 2022 (YoY)
Air Freight (KGs) 11,158,986 12,740,840 (12%)
Sea Freight (FCL TEU) 7,004 8,142 (14%)
Sea Freight (LCL CBM) 6,072 5,225 16%
Land Freight (FTL) 6,829 7,271 (6%)
Land Freight (LTL KGs) 36,357,056 36,921,430 (2%)
Aramex's Freight-Forwarding business delivered a robust performance in the first quarter with
Revenue maintained at AED 385 million and a 17% increase in Gross Profit at AED 61 million. This was
driven by the positive impact of operational efficiencies, including increased focus on realizing quality
revenue and consolidation of trucking resources between freight and logistics products. Revenue
growth in Africa and America, stable revenues in the GCC and MENAT, and newly opened freight
services in Oceania contributed to the revenue growth in the Freight-Forwarding business.
Logistics and Supply Chain Solutions
Q1 Q1 % Change
In Thousands of UAE Dirhams
2023 2022 (YoY)
Revenues 107,044 112,105 (5%)
Gross Profit 16,203 13,171 23%
Gross Profit Margin 15.1% 11.7%
Logistics and Supply Chain Solutions Revenue decreased marginally by 5% to AED 107 million in Q1
2023, while Gross Profit increased by 23% to AED 16.2 million, with a corresponding Gross Profit Margin
of 15.1% - up from 11.7% in Q1 2022. Solid performance in the GCC, Europe and South Africa, driven by
sectors such as Retail, e-Commerce, Pharma and Oil &Gas, contributed to this growth.
- Ends –About Aramex:
Since its foundation 40 years ago, Aramex has grown to become a global leader in the logistics and transportation
industry, recognized for its customized and innovative services for businesses and consumers. Listed on the Dubai
Financial Market (DFM) and headquartered in the UAE, our location bridges the path between East and West,
enabling our reach to more customers with the provision of effective and innovative logistics solutions worldwide.
We currently have business operations in 600+ cities across more than 70 countries worldwide and employ over
16,000 professionals.
Aramex operates through four well-defined business products which offer scale, diversification and an end-to-end
service offering for customers, and support the Company’s efforts to capture greater global market share within
both the B2C and B2B customer segments. These products are:
1. International Express, which includes Aramex’s Parcel Forwarding Business (Shop & Ship and MyUS).
2. Domestic Express
3. Freight-Forwarding
4. Logistics & Supply Chain Solutions
Aramex’s Vision is to “Deliver what our customers value most everywhere, on time, every time!”, and its Mission is
to “Connect people & businesses, reliably & responsibly”.
Sustainability is core to achieving our vision and mission. We believe that in order to grow a truly sustainable business,
it is crucial that we utilize our main competencies to enhance our positive impact as active citizens in the
communities in which we operate. Our “Delivering Good” sustainability platform is active in over 100 projects
worldwide across three well-defined key themes (1) Education and Youth Empowerment, (2) Entrepreneurship, and
(3) Environment. Therefore, we continue to partner with international and local organizations dedicated to similar
causes to reach more beneficiaries every year through targeted programs and initiatives. As part of our efforts to
protect the environment and mitigate climate change risks, we signed up for the globally renowned Science Based
Targets initiative (SBTi), to further accelerate our climate action goals toward achieving Carbon-Neutrality by 2030
and Net-Zero by 2050.
We live in an era where technology transforms and influences our daily lives more than ever before; as a result, we
continue to strategically leverage the latest technologies for higher operational efficiencies, to satisfy customers
evolving needs and to deliver the maximum value to all our stakeholders.
For more information, please visit us: www.aramex.com
Follow us on:
For more information, please contact:
Aramex
Mohammad Al Qassem Anca Cighi
Head of Corporate Communications Investor Relations Director
mohammadalah@aramex.com Investorrelations@aramex.com | positive |
FUJAIRAH CEMENT INDUSTRIES P.J.S.C o uil ol-----tLlu-o
' HEAD OFFICE
P.O. Box : 600. FUJAIRAH - n • ■ :
UNITED ARAB EMIRATES 3.1>~U 4_u^jJI CjljLfl^l
Tel.: 09-2223111 . x-yy'yVa a a
Fax:09-2227718 Web Site: www.fujairahcement.com :cJjjsyi -i-yyyvvaa
Email:hofci79@fciho.ae hofci79@fciho.ae jjj-JI
Disclosure & Compliance Section
Market Operations Surveillance Department
Abu Dhabi Securities Exchange
Respected,,,
The results of the Board of Directors meeting
Date 10 AUG 2023
Name ol the Listed Company Fujairah Cement Industries (PjSC)
Date and day of the meeting: Thursday, 10 08/2023
The starting time of the meeting 11:30 AM
The ending rime of the meeting 2:00 PM
Number of board members present 11
Quorum achieved (%) 100%
1- Approx al of the minutes of last meeting.
2- Reviexving General Manager's report,
performance of the companx for the period
Decisions / Resolutions of the meeting
ended 30/06/2023.
3- Approval of the financial statements for
the period ended 30/06/2023.
CC: SCA
FACTORY : P. O. Box : 11477, Dibba, Fujairah Lj - " ivv :
U.A.E.
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Tel.: 09-2444011 ■ ‘t-Y 41t • A A :
Fax : 09-2444016,2444061 ISO 9001:2008 • —Y S. 11 . n X , • WU 4 • A - :
Email: fujcem82@eim.ae Ccrttflcalc fujcem82@eim.ae : jj>JI
No. I0A-0072.FUJAIRAH CEMENT INDUSTRIES P.J.S.C —9^ ol-----cLl^
HEAD OFFICE 4^'
RO. Box: 600, FUJAIRAH " Sj^l- i • • : <-j.^
UNITED ARAB EMIRATES 5-Aj.I 4^1 oljL^I
Tel.: 09-2223111 • VYYYrm zj^
Fax:09-2227718 Web Site: www.fujairahcement.com : <rGyGyi •i hyvyu z^ls
Email:hofci79@fciho.ae hofci79@fciho.ae -u>Jl
Discussion report and analysis of the board of directors
Date 10 th August 2023
Name of the Listed Company Fujairah Cement Industries PJSC
The period of the financial statements covered by the report 6 Months ended 3O'h June 2023
Overview of the main results during the financial period Loss reported for the period — (AED 62,055,829)
Securities issued during the financial period
Summary of the most important non-financial events and
developments during the financial period
Summary of operational performance during the financial Revenue for the period H1 2023 is 179,835,861 (Revenue for
period the period is marginally higher than compared to H1 2022)
Revenue for the period — AED 179,835,861
Gross Loss for the period — (AED 21,501,074)
Selling & Distrb. Costs - (AED 15,115,796)
Summary of profit and loss during the financial period General & Admin. Costs - (AED 6,299,244)
Finance Costs — (AED 20,796,110)
Other Incomes — AED 1,656,395
Net Loss for the Period - (AED 62,055,829)
Non-Current Assets - AED 1,189,985,141
Current Assets — AED 365,323,715
Total Assets - AED 1,555,308,856
Summary of financial position as at the end of the financial
Equity & Reserves — AED 625,319,608
period
Non-Current Liabilities — AED 420,304,242
Current Liabilities — AED 509,685,006
Total Equity & Liabilities —AED 1,555,308,856
Cash and Bank Balance as at 01.01.2023 — AED 1,323,554
Cash Flow from Operating Activities — AED 69,218,736
Summary of cash flows during the financial period Cash Flow from/used Investing Activities — (1,436,447)
Cash Flow from Financing Activities — (AED 61,223,087)
Cash and Bank Balance as at 30.06.2023 — AED 7,882,756
Gross Loss Ratio - (11.96%)
Net Loss Ratio - (34.51%)
Main performance indicators
Cash Loss Ratio — (15.80%)
Loss Per Share (UAE Dirhams) — (0.174)
Expectations for the sector and the company's role in these
expectations
Page 1 of 2
FACTORY : P. O. Box :11477, Dibba, Fujairah L>J - ' 1 iVV : '■
U.A.E. 3 J-alLI d_ujjJl cjljLa^l
Tel.: 09-2444011 •°~Y tit • \ \ : ^Ls
Fax : 09-2444016, 2444061 ■ l-Y i t i • 3 \ , • A-Y U ‘ \ ; ^Li
Email: fujcem82@eim.ae Certificate fujcem82@eim.ae : -u>J'
No. 10A-0072.FUJAIRAH CEMENT INDUSTRIES P.J.S.C
HEAD OFFICE 3
P.O. Box : 600, FUJAIRAH
UNITED ARAB EMIRATES O-LauJJ AujyJl CjljLa^ l
Tel.: 09-2223111 . “\-YYYn \ '
Fax: 09-2227718 Web Site: www.fujairahcement.com : cJyisyi • ‘Y-YYYVVYA -.JuSlb
Email:hofci79@fciho.ae hofci79@fciho.ae jj^JI
Increasing inflation due to current Geo-Political situation has
increased the cost of fuel and energy across the globe which
has adversely affected the profitability of cement plants.
Recent decrease in coal prices and expected downtrend will
Expectations regarding the economy and its impact on the reduce the production cost of clinker and cement. But the
company and the sector downside of clicker market is a main concern. The cement
market is relatively stable and our goal is convert the clinker
sale to cement.
There is an improvement showing in the UAE real estate
sector.
The factoiy has obtained BIS Certification from India which
will help to expand its market to India. Cement Sales to Oman
is also increasing. Coal cost is expected to reduce further
from its 2022 peak which will also help the industry to
achieve optimum production costs.
Our new sale opportunity of 2ton JUMBO bags project will
Future plans for growth and changes in operations in future
open a new vista in US market. We are eying at a tonnage of
periods
48,000 tons per month in the first phase and 88,000 tons at
the 2nd phase. We have started export of bulk cement to
Yemen &Sur in Oman.
Export of steel grade limestone to India and other potential
markets will open a new business vertical which can add
values to our existing line of business.
The size and impact of current and projected capital
AED 1.368 million for the 6 months ended 30.06.2023
expenditures on the company
The developments of the implementation of projects, plans
and transactions and deals that were discussed by the The ready Mix Unit constructed at Al Hayl Free Zone,
company's board of directors in the report for the previous Fujairah has started operations in March 2022.
fiscal year
Saeed Ahmed Ghareib Alsereidi
General Manager
Page 2 of 2
FACTORY : P. O. Box :11477, Dibba, Fujairah Lj - \ Y tW : : £—
U.A.E. 34-ujjJI oljLs^ll
Tel.: 09-2444011 • n-rtu-n : _^Ls
Fax : 09-2444016, 2444061 • <\-rit t • ny , ■ a-y t u • \n :
Email: fujcem82@eim.ae Certificate fujcem82@eim.ae : ^y&WI jj>JI
No. 10A-0072. | positive |
First Quarter 2023
Results
11 M ay 2023
2023
FIRST QUARTER
Q1 2023 RESULTS PRESS RELEASE 1Al Ansari Financial Services Reports a 7.2% Net Profit Increase in
Q1 2023 to AED 133 million on Strong Demand Across All Products
Al Ansari Financial Services announces the financial results for Q1 2023
demonstrating a robust performance
Key Highlights in Q1 2023:
1. Solid growth in Operating Income
9.1%
➢ Operating Income grew 9.1% YoY to AED 287
Operating Income growth
million driven by 8.6% YoY increase in the total
number of transactions across all offerings.
8.6%
➢ EBITDA increased by 7.9% YoY to AED 151
million with a steady EBITDA Margin near 53% on Increase in no. of Transactions
the back of strong top line growth, high margin
contribution from increased digital transactions –
and Group’s CAPEX-light model. 7.9%
EBITDA
2. Strong increase in Net Profit
➢ Net Profit came in at AED 133 million, increasing
7.2%
7.2% YoY on the back of healthy top-line growth,
strong increase in exchange income from the Bank
Net Profit
Notes and pre-paid cards products as well as the
Group’s significant operating leverage and
increase in contribution from digital channels.
➢ This marks the Group’s fourth consecutive Net
Profit increase in the Q1 period.
3. Surge in digital channels and corporate
business 32%
Increase in Digital
➢ Transactions conducted through digital channels
Transactions
across all products continue to boom, with a 32%
YoY increase in Q1 2023.
➢ Corporate Business transactions witnessed 47.6%
47.6% YOY increase in value reaching AED 27.64
billion. Increase in value of
Corporate Business
4.Enhanced Performance in Bank Notes
➢ Bank Notes business records strong performance
36.8%
in Q1 2023 on the back of tourism boom with
Operating Income up by 36.8% YoY. Growth in Bank Notes
Operating Income
Note: All financial information is based on Group’s continued operations
Q1 2023 RESULTS PRESS RELEASE 2Dubai, UAE - 11 May 2023 - Al Ansari Financial Services PJSC (DFM: ALANSARI), (the
“Group”), one of the leading integrated financial services groups in the UAE and the parent of
Al Ansari Exchange, today announced its financial results for the first quarter (“Q1”) of 2023,
ended 31 March 2023. This marks the first financial results since the Group listed 10% of its
issued share capital through an initial public offering on the Dubai Financial Market (“DFM”) on
6 April 2023.
Q1 2023 Financial Highlights
In AED thousands Q1 2023 Q1 2022 % change
(unless otherwise stated)
Operating Income 287,022 263,116 9.1
EBITDA 151,382 140,334 7.9
EBITDA margin (%) 52.7% 53.3% (0.6) pp
Net Profit 133,009 124,113 7.2
Earnings per Share 0.018 0.017 7.2
Free Cash Flow 140,715 136,680 3.0
Q1 2023 Operational Highlights
Q1 2023 Q1 2022 % change
No. of physical branches in UAE 232 217 7
(No. of net new
branches 15)
Total No. of transactions (‘000) 11,771 10,835 8.6
Corporate business - value of 27,637 18,729 47.6
transactions by (AED millions)
Digital Channels - No. of transactions 871 658 32.2
(‘000)
Q1 2023 RESULTS PRESS RELEASE 3Q1 2023 Financial and Operational Performance Commentary
• Operating Income increased 9.1% YoY to AED 287 million driven by an 8.6% YoY
increase in the total number of transactions.
• The increase in the number of transactions was driven by exceptional demand from the
Corporate business segment underpinned by buoyant economic conditions. It is also
owed to a strong increase in the Bank Notes business on the back of the UAE’s tourism
boom and increase in outbound tourism.
• EBITDA increased by 7.9% YoY to AED 151 million with a steady EBITDA Margin near
53% on the back of strong top line growth, high margin contribution from increased digital
transactions and Group’s CAPEX-light model.
• Net Profit came in at AED 133 million, increasing 7.2% YoY on the back of healthy top-
line growth, strong increase in exchange income from the Bank Notes and Pre-Paid Cards
products as well as the Group’s significant operating leverage and increase in transactions
conducted through digital channels.
• Despite an increasing operating cost environment, the Group managed to maintain a
relatively strong control over major costs, such as rent, thanks to its market dominance.
• Free cash flow (FCF) increased by 3% YoY to AED 141 million, demonstrating the Group’s
healthy cash flow position. The Group’s ability to increase its cash generation is driven by
EBITDA growth with c.93% cash conversion rate.
Performance of other products
• The WPS business saw a strong increase in Operating Income, up 23.4% in Q1 2023
versus Q1 2022. This is predominantly driven by growth in the number of newly acquired
corporate customers.
• While still in its early stages, the end-to-end cash management business, through
CashTrans, is gaining remarkable momentum, with the number of customers growing
from only 3 in Q1 2022 to 25 in Q1 2023. The Group expects this number to continue
growing as it ramps up operating and sales efforts within this product line.
Dividend
• As announced during the IPO, and outlined in the Prospectus, the Group intends to
distribute a minimum of AED 600 million for FY 2023 to be paid out semi-annually with
the first half expected to be distributed in October 2023 and the second payment to be
disbursed in April 2024. The dividend is subject Board of Director’s recommendation and
shareholder approval.
Q1 2023 RESULTS PRESS RELEASE 4rl
Commenting on the results Rashed Ali Al Ansari, Group CEO of
I
Al Ansari Financial Services, said: “2023 is off to a fantastic start,
building on the previous year’s strong financial and business
L
performance. Our integrated offering, multi-channel approach,
diverse and growing customer base and capex-light business model
have supported our profitable growth over the last three months. The
Group’s growth is underpinned by a robust UAE economy, specifically the increase in
number of inbound tourists, positive consumer confidence and increase in business
activities.
Our latest financial performance demonstrates why we are a compelling investment
opportunity, supports our promise to distribute dividends and validates investors’ strong
demand in our IPO.
Looking ahead, we will continue to execute the well-funded and executable growth
strategy to unlock shareholder value over the mid to long term. We expect to further
strengthen our market leadership position in our home market within the remittance and
banknotes market by increasing our physical branches. We also believe that the digital
channels will continue to perform exceptionally, as more and more customers choose
the convenience and ease of that channel, which will support margin expansion. Staying
in our home market, we believe the outstanding growth in demand we saw in our
corporate business from new and existing clients will continue to gather pace thanks to
our know-how, offerings, market reputation and our talent. We also expect to expand
our footprint in other high-potential GCC markets, supporting our revenue
diversification.”
Mohammad Bitar, Deputy Group CEO of Al Ansari Financial
Service, said: “We are encouraged by the strong growth across the
business during the first three months of 2023, with the star
performer for the period being the Bank Notes and Wage Protection
System (WPS) business.
The Bank Notes business is buoyed by the significant increase in number
of tourists coming to the UAE, with Dubai alone receiving 4.67 million international
visitors in the first quarter of 2023, according to official data. It was also supported by
the strong increase in the wholesale bank notes business. The pre-paid cards product
also had an outstanding period, with the number of transactions jumping by 40%
compared to Q1 2022. The WPS business growth was driven predominately by increase
in both the number of corporate customers and the total number of salary disbursals.
More generally, we are very pleased with the remarkable growth in the B2B business.
This is owed to our strategic initiatives to expand our market share in this very attractive
customer segment. We anticipate acquiring more corporate customers and increasing
Q1 2023 RESULTS PRESS RELEASE 5cross-selling to existing ones, in line with our growth strategy. Additionally, our
investment in digital channels is paying off, and we are continuing to see a significant
uptick in the number of transactions executed through those channels across all our
offerings. We anticipate more and more of our customers to opt for a hybrid approach,
using both our physical and digital channels for their money transfer and bill payment
needs.”
Corporate Highlights
Update on Al Ansari Exchange Kuwait Acquisition
As announced in the IPO prospectus, the Group is currently in the process of fully acquiring Al
Ansari Exchange Kuwait, which in turn has completed the acquisition of Oman Exchange - Kuwait.
According to management, upon completion, the acquisition will give the Group a strong presence
in the sixth-largest outward personal remittances market globally in 2021.
Other Major Updates
The Group saw a 21% increase in the number of employees in Q1 2023 compared to Q1 2022 and
a 5% increase compared to 31 December 2022. The consistent growth in the number of employees
is in line with the Group’s expansion strategy.
Emiratisation has experienced remarkable growth in Q1 2023, compared to the same period in 2022
with a significant increase of 95%, in the number of Emirati nationals, in line with the Group's support
of the Government's Emiratisation initiative. This growth can be attributed to various measures taken
by the Group, including providing training and development programmes, and actively seeking out
and recruiting Emirati talent at career events and in collaboration with top universities in the region.
Q1 2023 RESULTS PRESS RELEASE 6JJ
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QQ11 22002233 RREESSUULLTTSS PPRREESSSS RREELLEEAASSEE 77Appendix 1 Description of Al Ansari Financial Services’ Product Offerings
Remittances The Group provides remittances at its retail branches and via its
digital channels, offering domestic and global money transfers
through its proprietary money remittance platforms, Cash
Express, Global Fund Transfer and Worldwide Cash Express, as
well as through its money transfer operator partners such as
Western Union and its transfer payment network where transfers
to bank accounts are executed via money transfer services such
as SWIFT or Ripple. The Group offers remittances for its retail
and corporate customers.
Bank Notes The Group's retail and wholesale foreign currency exchange
services primarily comprise the sale and purchase of foreign
currency directly to and from retail and wholesale customers. The
Group offers its bank notes services in over 70 currencies across
all its branches. The Group also offers pre-paid cards as part of
its retail foreign currency exchange services. Both the Group's
Travelcard and FlexiblePay products are reloadable pre-paid
cards that can store either single or multiple currencies on the
card, and which also allow the conversion of such currencies to
other currencies by the user. The Group's pre-paid cards, where
available, can be purchased or reloaded in the Group's branches,
o nline or through the mobile app.
Wage Protection System The Group offers corporate payroll solutions, executing wage
(“WPS”) payments on behalf of companies operating in the United Arab
Emirates in compliance with the directives of the UAE's Ministry
of Human Resources & Emiratisation, under the Wage Protection
S ystem initiative.
Other Services The Group's other offerings include, among others, bill payment
a nd end-to-end cash management solutions.
Q1 2023 RESULTS PRESS RELEASE 8Appendix 2: Glossary of Terms
Term Definition
Corporate business or Products and services offered to Corporate Customers, including WPS, Bill
B2B business Collection, End to End cash management, Remittances, Bank Notes.
Digital business All transactions conducted through digital channels across all products,
including Remittances, Travel Card, Bill Collection and WPS.
Digital outward personal Outward personal remittances conducted through digital channels.
remittances
Operating Income Operating Income is defined as “Income” excluding “Other income” and
“Interest income – net”. In other words, it is income generated from the
Group’s operations.
EBITDA EBITDA is defined as “Profit for the year” excluding “Depreciation and
Amortization”, “Finance cost on lease liabilities” and “Interest income – net”.
EBITDA Margin EBITDA margin is calculated as EBITDA divided by operating income.
Number of transactions The number of transactions conducted by the Group per product
(Remittances, Bank Notes, WPS) or by channel (in person, digital) or by
customer segment (Retail, Corporate)
Value of transactions The aggregate nominal value of executed transactions, which is calculated
by: number of transactions x AED per transaction.
Q1 2023 RESULTS PRESS RELEASE 9 | positive |
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IInnvveessttoorr RReellaattiioonnss AADDCCBBADCB REPORTS RECORD HALF-YEAR NET PROFIT
OF AED 3.059 BN, UP 21%, AND Q2 NET PROFIT
OF AED 1.575 BN, UP 12%
Abu Dhabi, 28 July 2022 – Abu Dhabi Commercial Bank PJSC (“ADCB” or the “Bank”)
today reported its financial results for the second quarter of 2022 (“Q2’22”).
Strong performance in context Key highlights Q2’22
of rising rates and strong UAE
economic fundamentals 1.575 bn
Net profit
(AED)
Key highlights - Q2’22
> Net profit of AED 1.575 bn increased 6% QoQ and 12% YoY
14.2%
> Net interest income of AED 2.571 bn increased 20% QoQ
and 11% YoY Return on average
tangible equity
> Non-interest income of AED 924 mn increased 17% QoQ
and 10% YoY
> Operating income of AED 3.495 bn increased 19% QoQ 12.37%
and 11% YoY
CET1
> Operating profit before impairment allowances of
AED 2.268 bn increased 25% QoQ and 8% YoY
135.3%
Key highlights - H1’22 vs. H1’21
Liquidity
coverage ratio
> Net profit of AED 3.059 bn increased 21%
> Net interest income of AED 4.718 bn increased 6%
78 bps
> Non-interest income of AED 1.713 bn increased 4%
Cost of risk
> Operating income of AED 6.431 bn increased 6%
> Impairment charges of AED 950 mn decreased 31%
> Operating profit before impairment allowances of 4.086 bn
increased 3%
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 2Strong liquidity position driven by significant increase in deposits
(All numbers are as at 30 June 2022 unless otherwise stated)
> Total assets of AED 476 bn increased 8% from Dec’21
> Net loans were AED 243 bn at June-end, while total customer deposits of AED 292 bn increased
10% from Dec’21. CASA (Current and savings account) deposits were AED 159 bn at June-end, up
AED 6 bn from year end, and comprised 54.4% of total customer deposits
> Capital adequacy and CET 1 ratios were 15.22% and 12.37% respectively
> Liquidity coverage ratio (LCR) of 135.3%
> Cost of risk was 78 bps for Q2’22 and 54 bps for H1’22. NPL ratio was at 5.59% (6.74% including
POCI), while provision coverage ratio was 89.8% (147% including collateral held)
(Continued on next page)
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 3ALA’A ERAIQAT Group Chief Executive Officer
ADCB is pleased to report a record half-year net profit of AED 3.059 billion, an increase of 21% year
on year, representing a return on average tangible equity of 13.2%.
These solid financial results reflect the successful implementation of our five-year strategy as the Bank
continues to invest in digital transformation to support the next phase of expansion.
Our balance sheet remains a source of strength for ADCB. The Bank also benefits from healthy capital
ratios and liquidity positions, with a liquidity coverage ratio of 135.3%, and loan-to-deposit ratio at
historically low levels.
ADCB is accelerating its digital transformation to provide premium service to a consistently expanding
customer base. Our onboarding app has maintained strong momentum, opening more than 65,000 new
accounts digitally in Q2, the highest number in a single quarter and representing 79% of all new-to-bank
retail customers in the period. Meanwhile, the ADCB Mobile Banking app has now crossed the milestone
of 950,000 subscribers.
+65,000
Record number of customers onboarded
digitally in a quarter
Major subsidiaries are also making a stronger contribution to the Group, with ADCB Egypt reporting a
25% increase in first half net profit in local currency terms, while Al Hilal is experiencing good traction in its
new digital marketplace platform, with 77,000 new registered users since its launch in February.
Over the past two years, as the UAE successfully navigated the global pandemic into a robust recovery,
ADCB has played a key role in protecting and promoting the interest of all its stakeholders. As a result,
the Bank remains well positioned to make strong progress in the years ahead, contributing to the further
sustainable growth of the UAE economy.
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 4DEEPAK KHULLAR Group Chief Financial Officer
The Bank delivered a robust performance in the second quarter, with net profit improving 12%
year on year to AED 1.575 bn, supported by rising rates and higher non-interest income in a context of
improving UAE economic fundamentals.
Key financial highlights include a 19% quarterly increase in revenues and a 25% sequential improvement
in operating profit, despite growing inflationary pressures. The Bank also improved its risk-adjusted net
interest margin in the first half as a result of a strategic rebalancing of our loan portfolio. We continue to
increase lending to targeted economic sectors including manufacturing, trading and energy, while further
reducing exposure to real estate.
+19%
Quarterly increase in revenues
Deposits increased by 10% during the first half, further enhancing the Bank’s liquidity position. At the
same time, we continued to capitalise on our robust lending pipeline, with AED 35 billion of new credit
extended in the first half of the year.
The Bank maintains healthy asset quality metrics, with a cost of risk of 54 basis points in H1’22, in-line with
our medium-term guidance, while our NPL and provision coverage (including collateral) ratios improved
to 5.59% and 147% respectively.
In parallel, ADCB has taken important steps to enhance resilience through the adoption of a new ESG
strategy, which is overseen by the Board of Directors. The approach reinforces the Bank’s commitment
to robust governance and rigorous risk management, and also sets out clear areas of focus in relation to
climate, customers and communities, as well as employees.
ADCB is in a strong financial position, benefiting from a robust balance sheet and diversified income
streams through each of our business segments. The Bank is well prepared to weather an increasingly
challenging global economic environment and to grasp opportunity to support the resilience of the UAE
economy as the country implements growth and diversification strategies.
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 5ABU DHABI COMMERCIAL BANK
Q2/H1 2022 MANAGEMENT DISCUSSION & ANALYSIS
Q2/H1 2022 FINANCIAL HIGHLIGHTS
Income statement highlights (AED mn) H1’22 H1’21 ∆ YoY% Q2’22 Q1’22 Q2’21 ∆ QoQ% ∆ YoY%
Total net interest and Islamic financing income 4,718 4,434 6 2,571 2,146 2,315 20 11
Non-interest income 1,713 1,643 4 924 789 840 17 10
Operating income 6,431 6,077 6 3,495 2,936 3,155 19 11
Operating expenses (2,345) (2,116) 11 (1,227) (1,118) (1,055) 10 16
Operating profit before impairment allowances 4,086 3,961 3 2,268 1,818 2,100 25 8
Impairment allowances (950) (1,382) (31) (655) (294) (678) 123 (3)
Net profit for the period1 3,059 2,524 21 1,575 1,483 1,402 6 12
Balance sheet highlights (AED mn) Jun'22 Jun’21 ∆ YoY% Jun’22 Mar’22 Dec'21 ∆ QoQ% ∆ YTD%
Total assets 476,093 416,290 14 476,093 445,677 440,278 7 8
Net loans and advances 242,913 237,814 2 242,913 245,797 244,282 (1) (1)
Deposits from customers 292,262 250,564 17 292,262 261,891 265,052 12 10
YoY QoQ YoY
Key metrics H1’22 H1’21 ∆ bps Q2’22 Q1’22 Q2’21 ∆ bps ∆ bps
CAR (Capital adequacy ratio – Basel III) 15.22 16.32 (110) 15.22 16.02 16.32 (80) (110)
CET1 (Common equity tier 1) ratio 12.37 13.20 (83) 12.37 13.03 13.20 (66) (83)
Liquidity coverage ratio (LCR) 135.3 127.6 770 135.3 126.1 127.6 920 770
Loan to deposit ratio 83.1 94.9 (1,180) 83.1 93.9 94.9 (1,080) (1,180)
CASA/total customer deposits 54 57 (300) 54 58 57 (400) (300)
Non-performing loan (NPL) ratio 5.59 5.86 (27) 5.59 5.71 5.86 (12) (27)
Provision coverage ratio2 89.8 91.5 (170) 89.8 86.9 91.5 290 (170)
NPL ratio including POCI3 6.74 7.35 (61) 6.74 7.10 7.35 (36) (61)
Cost of risk4 0.54 0.82 (28) 0.78 0.30 0.81 48 (3)
Cost to income ratio 36.5 34.8 170 35.1 38.1 33.4 (300) 170
Net interest margin (NIM) 2.43 2.51 (8) 2.57 2.28 2.60 29 (3)
Risk adjusted NIM 1.92 1.73 19 1.86 1.99 1.82 (13) 4
Return on average tangible equity (ROATE) 13.2 11.3 190 14.2 12.6 13.1 160 110
Note: Figures may not add up due to rounding differences
1 After share in profit of associates, overseas income tax charge, and profit/loss from discontinued operations
2 Provisions on loans and advances, including fair value adjustments
3 POCI: Purchase or originated credit-impaired financial assets
4 COR: Net impairment charge on loans and investments divided by net average loans & advancements and investments
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 6KEY HIGHLIGHTS
Record half-year net profit driven by broad-based growth in net interest
income, card fees and trading income as the UAE economy recovers
> Net interest income of AED 2.571 billion for Q2’22 was 20% higher sequentially and up 11% year
on year. Net interest margin (NIM) of 2.57% in Q2’22 increased 29 basis points sequentially, supported
by rising benchmark rates, higher interest in suspense reversals and fair value unwinds. H1’22 net
interest income of AED 4.718 billion was 6% higher over the prior year, while NIM was 2.43%, a
decrease of 8 basis points due to a change in asset mix towards a lower-risk credit portfolio and liquid
assets. This has contributed to a lower cost of risk and an improvement in risk-adjusted NIM to 1.92%
in H1’22, from 1.73% a year earlier.
> Cost of funds was 1.04% in Q2’22, up from 0.71% in the previous quarter and 0.66% in Q2’21 on
account of higher benchmark rates.
> The Bank continues to benefit from diversified income streams, with non-interest income of
AED 924 million in Q2’22, up 17% sequentially and 10% year on year. Net fee and commission income
of AED 505 million in Q2’22 increased 4% sequentially and 1% year on year, with card-related fees
(gross) rising 34% from the previous year. Net trading income of AED 259 million in Q2’22 increased
122% over the previous quarter and 49% year on year on account of higher FX and derivatives gains.
Non-interest income for H1’22 increased 4% to AED 1.713 billion, accounting for 27% of total
operating income.
> Cost to income ratio improved by 300 basis points sequentially to 35.1% in Q2’22 primarily on account
of higher revenues. In the context of growing inflationary pressures, operating expenses in Q2’22 were
up 10% sequentially and 16% year on year to AED 1.227 billion on account of higher compensation
costs and broad-based investment in the growth of the business, including in digital technology and
regulatory compliance.
> Net profit of AED 1.575 billion in Q2’22 increased 6% sequentially and 12% year on year, while first half
net profit reached a record AED 3.059 billion, representing a 21% increase year on year. Return on
average tangible equity was 14.2% for the second quarter and 13.2% for the first half of 2022.
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 7Continued loan growth to targeted economic sectors offset by
repayments, while a rise in deposits reinforced robust liquidity position
> The Group’s balance sheet remains strong, with total assets of AED 476 billion as at 30 June 2022, up
8% year to date.
> ADCB continued to capitalise on a robust lending pipeline in H1’22, extending AED 35 billion in new
credit to targeted economic sectors, including energy, trading and manufacturing, as well as to retail
customers. However, net loans and advances of AED 243 billion declined 0.6% from December-end
as a result of repayments totalling AED 38 billion.
> Investment securities of AED 109 billion at June-end increased 13% year to date mainly on account
of an increase in government bonds. The Bank was also a net lender of AED 27 billion in the interbank
markets as at June-end.
> Total customer deposits of AED 292 billion increased by 10% from December-end. CASA deposits
increased 4% during the six-month period to AED 159 billion, while time deposits were up 19% to
AED 133 billion. CASA accounted for 54.4% of total customer deposits at June-end.
> The average loan balance was AED 242 billion in H1’22, and the average deposit balance
was AED 268 billion.
> Total shareholders’ equity stood at AED 58 billion as at 30 June 2022.
> The Bank remains well-capitalised with capital adequacy (Basel III) and CET1 ratios of 15.22% and
12.37% respectively as at 30 June 2022, versus 15.97% and 12.94% at December-end.
> ADCB’s liquidity position was enhanced during H1’22 resulting in a liquidity coverage ratio of 135.3%,
a liquidity ratio of 35.1% and a loan to deposit ratio of 83.1% as at 30 June 2022.
Healthy asset quality metrics, with cost of risk of 54 bps in H1’22
> Cost of risk improved significantly to 54 bps in H1’22 from 82 bps a year earlier, and was 78 bps in
Q2’22, in line with medium-term guidance of 80 bps.
> Impairment charge in H1’22 improved 31% year on year to AED 950 million. For the quarter,
impairment charges were 3% lower year on year at AED 655 million. This compares to
AED 294 million in Q1’22.
> The NPL ratio improved to 5.59% from 5.71% at March-end, and including net POCI (purchase or
originated credit impaired) assets, the NPL ratio was 6.74%.
> The provision coverage ratio increased to 89.8% from 86.9% in the previous quarter, while including
collateral held, it was 147% as at 30 June 2022 compared to 141% at March-end.
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 8High level of customer engagement on digital channels underlines
ADCB’s focus on digital transformation
> The Bank maintained its focus on introducing digital enhancements for customers, with 11 digital
releases across its Consumer and Wholesale Banking businesses in Q2’22, taking the total to 114 since
the start of its digital transformation programme. 84% of retail customers are now registered to
digital channels.
> ADCB achieved its highest ever number of new account openings for a quarter via its onboarding
app, with more than 65,000 accounts opened digitally in Q2’22, representing 79% of all
new-to-bank retail customers during the period.
> Subscriptions to the Bank’s internet and mobile banking platforms increased by 19% year on year to more
than 1 million customers at the end of Q2’22. During the quarter, a record of c. 75,000 customers registered
on the ADCB Mobile Banking app, taking total subscribers to over 950,000, up 26% from a year earlier.
> In Q2’22, 96% of all retail transactions were conducted electronically, and digital fund transfers were
up 62% year on year. Over 8,300 IPO applications, representing AED 1.2 billion of subscriptions, were
received through ADCB’s digital platform.
> The Wholesale Banking Group introduced additional features on the ProCash platform to enhance
security, flexibility and functionality. Upgrades include a new card control feature to help corporates
control individual card usage, mitigating security and fraud risks.
> Transactions on the ProCash and ProTrade platforms accounted for 96% of all cash management
transactions and 71% of trade finance transactions, respectively.
Inaugural ESG report published following adoption of ESG strategy
setting out clear areas of focus
> ADCB continues to make strong progress on ESG, having adopted a formal strategy built on four key
pillars: Climate, Customers and communities, Employees, and Governance. The Bank published its
inaugural 2021 ESG Report at the end of Q2’22, prepared in accordance with international reporting
standards GRI and SASB, and with third-party limited assurance from Deloitte.
> ESG is now fully integrated into corporate strategy and steered by best practice governance, including
board oversight, executive pay linked to ESG KPIs, and a designated ESG team.
> To support the UAE’s transition to an inclusive, net zero economy, ADCB is committed to taking action
across the four pillars, including:
– Climate: AED 35 billion of green financing by 2030, establishing a green bond framework, and
achieving net zero in own operations by 2050
– Customers and communities: Leverage digital transformation to support financial inclusion
– Employees: Build a thriving workplace for talented and committed people, while ensuring
continued diversity
– Governance: Ensuring a responsible business with the highest ethical standards
> Since 2021, ADCB has maintained an MSCI ESG Rating of ‘AA’.
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 9ADCB Egypt recorded solid performance driven by strong growth
in loans and deposits
> ADCB Egypt continued to deliver solid growth across the Consumer and Wholesale Banking
businesses, driven by its digital transformation programme. Subscribers to ADCB Egypt’s digital
banking platforms increased by 184% year on year in Q2’22, with active digital customers up 124% and
e-Pay subscriptions increasing 51%.
– Net profit1 in H1’22 increased 25% year on year to EGP 404 million, representing a return on
equity of 13.2%
– Net loans increased 22% in H1’22 to EGP 26 billion as at 30 June 2022
– Total deposits increased 39% in H1’22 to EGP 57 billion as at 30 June 2022
Al Hilal digital marketplace attracts 77,000 registered users as
engagement gathers momentum
> Since its launch in February 2022, Al Hilal’s new cloud-based super app featuring a virtual market
place has acquired over 77,000 registered users as at the end of Q2’22.
> Al Hilal continues to enhance the banking and e-commerce product and service offering on the app,
which offers financial solutions and a wide range of other services through an ecosystem of
partnerships. The platform has recorded high daily engagement rates and received positive feedback,
particularly for the family value proposition that provides a highly differentiated experience, including
gamified financial education for children.
> The new platform builds on a track record of increasing digital engagement, with active users of
Al Hilal’s digital platforms up 29% year on year in Q2’22, and registered subscribers increasing 48%.
1 Based on IFRS.
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 10ADCB H1 2022 and 2021 awards
INTERNATIONAL MENA BANKING GLOBAL FINANCE 2022
BUSINESS MAGAZINE 2022 EXCELLENCE AWARDS 2022
Best Trade Finance Provider
Best Trade Bank in MENA Excellence in Employee Engagement in the UAE
ASIAN BANKER AWARDS 2021 GULF CUSTOMER EXPERIENCE MIDDLE EAST INVESTOR
GOLD AWARDS 2021 RELATIONS ASSOCIATION
Best Customer Onboarding App (MEIRA) AWARDS 2021
(ADCB Hayyak) Customer Happiness
Best Annual Report in the Middle
Most Helpful Bank During Covid-19 Customers at the Heart East (Print Category)
in the Middle East and of Everything
United Arab Emirates
CX Team of the Year
EUROMONEY CASH
Most Recommended Retail Bank
MANAGEMENT SURVEY
in the Middle East and
United Arab Emirates MIDDLE EAST AND Best Service in the UAE
AFRICA RETAIL BANKING
INNOVATION AWARDS
ABF WHOLESALE
ISLAMIC RETAIL
BANKING AWARDS 2021 Outstanding Digital Acceleration in
BANKING AWARDS (IRBA)
Response to Covid-19
UAE Domestic Trade Finance
The 2021 Investor in People
Bank of the Year Digital Lending Product of the Year,
via ADCB Mobile Banking App
ARC AWARDS 2021 Best Frictionless Credit Evaluation
Bronze Award Best International Best API Initiative
(Annual Report)
ADCB EGYPT H1 2022 awards
INTERNATIONAL WORLD
BUSINESS MAGAZINE BUSINESS OUTLOOK
Best Digital Banking Services Provider Best New Bank
Egypt 2022 Egypt 2022
Best Mobile Banking Fastest Growing Retail Bank
Egypt 2022 Egypt 2022
Best Online Banking Fastest Growing Corporate Bank
Egypt 2022 Egypt 2022
Best Financial Inclusion Initiative Fastest Growing Bank
Egypt 2022 Egypt 2022
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 11Further information on ADCB can be found at adcb.com/ir
or by contacting:
Corporate Communications Abu Dhabi Commercial Bank
Majdi Abd El Muhdi Sheikh Zayed Bin Sultan Street
Email: majdi.a@adcb.com P. O. Box: 939, Abu Dhabi
adcb.com
Investor Relations
Denise Caouki
Email: ir@adcb.com
This document has been prepared by Abu Dhabi Commercial Bank PJSC (“ADCB”) for information
purposes only. The information, statements and opinions contained in this document do not constitute
a public offer under any applicable legislation or an offer to sell or solicitation of an offer to buy any
securities or financial instruments or any advice or recommendation with respect to such securities or
other financial instruments. This document is not intended for distribution in any jurisdiction in which such
distribution would be contrary to local law or reputation. The material contained in this press release
is intended to be general background information on ADCB and its activities and does not purport to
be complete. It may include information derived from publicly available sources that have not been
independently verified. No representation or warranty is made as to the accuracy, completeness or
reliability of the information. It is not intended that this document be relied upon as advice to investors or
potential investors, who should consider seeking independent professional advice depending on their
specific investment objectives, financial situation or particular needs.
This document may contain certain forward-looking statements with respect to certain of ADCB’s plans
and its current goals and expectations relating to future financial conditions, performance and results.
These statements relate to ADCB’s current view with respect to future events and are subject to change,
certain risks, uncertainties and assumptions which are, in many instances, beyond ADCB’s control and
have been made based upon management’s expectations and beliefs concerning future developments
and their potential effect upon ADCB. By their nature, these forward-looking statements involve risk
and uncertainty because they relate to future events and circumstances which are beyond ADCB’s
control, including, among others, the UAE domestic and global economic and business conditions,
market related risks such as fluctuations in interest rates and exchange rates, the policies and actions
of regulatory and Governmental authorities, the impact of competition, the timing impact and other
uncertainties of future acquisition or combinations within relevant industries. As a result, ADCB’s actual
future condition, performance and results may differ materially from the plans, goals and expectations set
out in ADCB’s forward-looking statements and persons reading this document should not place reliance
on forward-looking statements. Such forward-looking statements are made only as at the date on
which such statements are made and ADCB does not undertake to update forward-looking statements
contained in this document or any other forward-looking statement it may make.
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 12 | neutral |
Aldar delivers record nine-month development sales of
AED 9.3 billion while transformational growth strategy
continues to power strong performance across the Group
Abu Dhabi, UAE: 27 October 2022
Revenue Gross Profit EBITDA Net Profit
Q3 AED 2.71 AED 1.14 AED 757 AED 601
bn bn mn mn
2022
+ 30% YoY + 36% YoY + 28% YoY + 27% YoY
YTD AED 8.07 AED 3.45 AED 2.54 AED 2.13
bn bn bn bn
2022
+ 28% YoY + 42% YoY + 34% YoY + 38% YoY
* Year-to-date represents the 9 months from the beginning of 2022 until 30th September 2022
Recent Group Highlights
▪ Execution of transformational growth strategy ▪ Ninth consecutive quarter of record-
continues with over AED 11 billion in transactions breaking group sales, with year-to-date
announced in 2022 year-to-date across multiple sales standing at AED 9.3 billion,
geographies and sectors, including the AED 4.3 surpassing FY2021 total group sales by
billion acquisition of the ADGM towers in one of AED 2 billion. Driven by continued strong
the largest real estate transactions to be demand for existing inventory and new
completed in the UAE. property launches in the UAE as well as
robust sales in Egypt. The group’s
▪ Remaining components of US$1.4 billion Apollo development backlog stands at AED 14.5
Global Management transaction closed and fully billion.
drawn during Q3, including US$ 500 million land
JV and US$ 400 million equity investment into AIP ▪ Strong year-to-date performance across all
at 100% of NAV, adding significant financial segments in Aldar’s investment portfolio,
backing to continue scaling up the real estate led by the retail, commercial and hospitality
platform through further transformative segments. New acquisitions already
acquisitions. delivering meaningful contributions in Q3
and set to accelerate into Q4.
▪ AED 5 billion of surplus capital allocated to fund
equity contributions towards acquisitions over the ▪ Continued strengthening of Aldar’s project
next 9-12 months. management business, Aldar Projects, with
AED 31.6 billion of new projects awarded
▪ Strong liquidity position, with AED 5.4 billion of year-to-date, giving significant visibility into
free cash and AED 4.9 billion of committed the segment’s future revenue. Current
undrawn facilities. project management backlog of AED 64.2
billion.“
TALAL AL DHIYEBI
GROUP CHIEF EXECUTIVE OFFICER OF ALDAR PROPERTIES
“Having demonstrated strength and agility through various economic cycles, Aldar continues to
accelerate its sustainable growth in a bullish UAE market, while creating long-term value for its
shareholders. As such, we are intent on maintaining our pace of investment activity in the region,
backed by our strong liquidity position and driven by our transformational growth strategy. We
will also continue to activate our extensive land bank to sustain our elevated level of
development sales, in line with the growth of off-plan sales to international and expatriate buyers
as Abu Dhabi’s position as a global investment destination matures.”
Real Estate Market Outlook
Amid an uncertain global landscape characterised by inflationary pressures and rising interest
rates, the macroeconomic dynamics of the UAE and the wider region remain strong with
sustained levels of solid FDI. The Central Bank of the UAE expects to see Real GDP growth of
5.4% in 2022, representing the fastest pace of expansion in more than a decade.
Moreover, the government continues to invest heavily in the UAE, as demonstrated by the
comprehensive programme of economic and social reforms that have already been
implemented – such as the introduction of the UAE’s Golden Visa programme – and large-scale
transformational projects in the pipeline that have encouraged an even more open, tolerant, and
vibrant environment. This commitment has also been showcased by the approval of the Federal
General Budget’s plan to spend AED 252 billion between 2023 and 2026.
These reforms have led to an increasingly mature asset market and an increased stream of
international and resident expatriate buyers. With a busy Q4 events calendar and tourist season
now in play, Aldar sees a strong and buoyant real estate market with positive sentiment
continuing well into 2023 as Abu Dhabi continues to position itself as a premier investment
destination and world-renowned location to live, work and visit.Business Unit Highlights
ALDAR DEVELOPMENT
This core business unit comprises three main segments: Property Development and Sales, which is
responsible for developing and marketing Aldar’s diverse and strategic land bank located in key
investment zones in the UAE including Saadiyat Island and Yas Island; Project Management Services,
which manages Aldar's fee-based development management business, including government housing
and infrastructure projects in the UAE; and Egypt, which manages Aldar’s investment in Egyptian real
estate company SODIC (Sixth of October Development and Investment Company).
Aldar Development Q3 2022 Q3 2021 % change YTD 2022 YTD 2021 % change
AED million
Revenue 1,643 1,256 31% 5,181 3,790 37%
EBITDA 389 291 33% 1,347 1,026 31%
Group Sales 3,930 2,694 46% 9,261 6,137 51%
Sales (UAE-only) 3,189 2,694 18% 7,198 6,137 17%
▪ Group sales in Q3 2022 reached AED 3.93 billion, a 46% increase from the same period last year. Year-
to-date sales have broken Aldar’s previous record to reach AED 9.3 billion, surpassing the total group
sales achieved in the full year of 2021, which stood at AED 7.2 billion.
▪ Aldar Development’s Q3 EBITDA increased 33% from Q3 2021 to AED 389 million with revenue
increasing 31% to AED 1.64 billion. This increase was driven by record sales from new project launches
and existing inventory in the UAE, project management services, and continued contributions from
SODIC.
▪ Gross profit margin increased to 37% up from 36% in Q3 2021.
▪ Group revenue backlog rose 148% YoY to AED 14.5 billion, providing strong visibility on the group’s
growing future revenue in both the UAE and Egypt.
▪ Projects backlog of AED 64.2 billion at the end of Q3 2022, versus AED 57.6 billion at the end of Q2
2022. This was driven by project additions across infrastructure, community buildings, schools, and
national housing. The AED 64.2 billion backlog is split between active projects (AED 35.4 billion) and
projects under design (AED 28.8 billion).
UAE Operations:
▪ Q3 UAE sales of AED 3.19 billion, up 18% from the same period last year. Total UAE sales for the year-
to-date stand at AED 7.20 billion, up 17% compared to Q3 2021.
▪ Sales performance was driven by strong local and international demand for existing inventory and new
launches including Yas Park Gate, Louvre Residences, Fay Alreeman, Grove Heart, and Yas Golf
Collection.
▪ Revenue backlog up 55% YoY to reach AED 9.06 billion.
▪ Cash collections year-to-date reached AED 5.18 billion.
▪ Q3 EBITDA for the Project Management Services up 3% YoY at AED 122.8 million, supported by
steady progress in government projects.Egypt Operations:1
▪ SODIC contributed AED 360 million to Aldar Development’s Q3 revenue, with Q3 EBITDA standing at
AED 63 million. In 2022 so far, SODIC has contributed AED 924 million in revenue and AED 199 million
in EBITDA.
▪ SODIC’s Q3 sales reached AED 741 million (EGP 4.88 billion). Year-to-date sales stand at AED 2.06
billion.
▪ Revenue backlog for SODIC reached AED 5.45 billion (EGP 28.8 billion) at the end of Q3 2022,
demonstrating a solid pipeline for future revenue.
▪ SODIC continues to maintain a strong liquidity position with total cash and cash equivalents
amounting to AED 291 million (EGP 2.07 billion).
ALDAR INVESTMENT
Aldar Investment comprises four main segments representing over AED 30 billion2 of assets under
management. Investment Properties houses Aldar’s core asset management business comprising over
AED 23 billion of prime real estate assets across retail, residential, commercial, and logistics segments. Aldar
Education is the leading private education provider in Abu Dhabi with managed schools footprint extending
across UAE. Hospitality and Leisure owns a portfolio of hotel and leisure assets principally located on Yas
Island, Saadiyat Island, and Ras Al Khaimah. Principal Investments includes Provis, the property
management business, Khidmah, the facilities management business, Spark Security Services, and Pivot, a
construction services business.
Aldar Investment3 Q3 2022 Q3 2021 % change YTD 2022 YTD 2021 % change
AED million
Revenue 1,048 783 34% 2,800 2,341 20%
Adjusted EBITDA4 424 318 33% 1,167 956 22%
Occupancy (Investment 91% 90% 1%
Properties)5
▪ Aldar Investment’s Q3 revenue grew 34% YoY to AED 1.05 billion while Adj. EBITDA for the quarter
increased 33% YoY to AED 424 million. The robust performance was mainly driven by new acquisitions
and continued strong performance of Aldar’s Investment portfolio as post-pandemic recovery gathered
momentum.
▪ The Investment Properties Q3 Adj. EBITDA6 increased 23% YoY to AED 342 million. This was primarily
driven by higher occupancy rates across the portfolio and positive contributions from the ADGM towers,
Al Hamra Mall and Abu Dhabi Business Hub acquisitions. Occupancy across the portfolio increased to
91% which represents a one percentage point uplift compared to Q3 2021.
o Residential Q3 Adj. EBITDA6 increased 7% YoY to AED 105 million. The overall portfolio showed
continued strength, reaching an occupancy rate of 97%, up 5% compared to the same period last
1 EGP figures stated at an exchange rate of 1 EGP to 0.189 AED
2 AUM includes YTD acquisitions
3 Excludes Pivot.
4 Aldar Investment EBITDA adjusted for fair value movements (excluding amortization of leasehold assets) and one-off gains/losses on
acquisitions; there were no adjustments in Q3 2022
5 Contracted or leased occupancy as of 30 September 2022.
6 EBITDA adjusted for fair value movements (excluding amortization of leasehold assets) and one-off gains/losses on acquisitions. There were
no fair value movements in Q3 2022 and 2021.year as Aldar strengthens its position as a landlord of choice due to its prime residential communities
and dedication to customer experience. Aldar continued the sale of strata residential units as part of
its monetisation strategy. During the first nine-months of 2022, Aldar achieved AED 232 million in
sales at an average of 14% above book value.
o Retail Q3 Adj. EBITDA6 increased 12% YoY to AED 117 million, driven by increased footfall and
occupancies in Yas Mall as well as community retail and dining destinations. Yas Mall occupancy
stood at 97% showing an increase of 8% compared to the same period last year. This has
significantly contributed to the overall retail portfolio occupancy of 90% compared to 88% in Q3 last
year.
o Commercial Q3 Adj. EBITDA6 increased 46% to AED 108 million compared to the same period last
year, driven by the positive contribution from the ADGM acquisition. Like-for-like occupancy
(excluding ADGM towers) held flat at 89%.
o Aldar Logistics recorded a Q3 Adj. EBITDA6 of AED 14 million. The logistics facilities are 87%
occupied.
▪ The Hospitality and Leisure business witnessed momentous growth in Q3, recording a significant YoY
increase in Adj. EBITDA6 to AED 30 million. This was driven by the significant recovery in the travel and
tourism sector post-Covid and the positive contributions of new acquisitions including Nurai Island
Resort, DoubleTree by Hilton and Rixos Bab Al Bahr in Ras Al Khaimah. Occupancy across the portfolio
stood at 70% compared to 47% in the same period last year.
▪ Aldar Education Q3 EBITDA increased 14% to AED 29 million. The platform is poised for growth with
a 25% YoY increase in enrolments to almost 33,000 students across 28 operated and managed schools.
The AED 1 billion investment plan is now fully committed with new schools coming to Khalifa City, Yas
Island and Saadiyat Island over the course of the next three academic years that will enhance the
portfolio and further broaden the choice of high-quality education options for students.
▪ The Principal Investments7 business witnessed a 60% YoY increase in Q3 EBITDA to AED 24 million.
This was largely driven by increased contributions from Provis given the addition of new revenue streams
such as the integrated facilities management services for the government, as well as additional revenues
from both the owner’s association and advisory functions. Further diversification and scale has been
achieved through the acquisition of Spark Security Services in early September for AED 125 million. The
acquisition further strengthens the property and facilities management platform, providing fully integrated
services for Aldar’s growing portfolio of assets and for third-party clients.
ESG Highlights
As one of the UAE’s leading real estate developers, Aldar has a duty to uphold the highest international
standards for ESG practices. ESG is a core pillar of the company’s long-term growth strategy, with
strong governance and responsible environmental and social impact integrated into its investment
processes and business decisions. Highlights of Aldar’s ESG activities this quarter include:
▪ Aldar has improved its ratings across three global ESG indices, including a two-point increase on Dow
Jones Sustainability Index (DJSI), while the sector average slightly declined. MSCI upgraded Aldar from
a BB rating to BBB, and Sustainalytics lowered the company’s risk from 16.6 to 16.1 in its ESG Risk
Assessment Scale.
▪ Aldar committed to investing AED 25 million in energy retrofit projects in 13 of its managed residential
communities, making them more energy efficient and environmentally friendly. The investment will offset
19,000 tCO2 per year and reduce utility consumption by a total of AED 12 million per year across the 13
communities.
7 Excludes Pivot.▪ Aldar joined the Science Based Targets initiative (SBTi)’s Expert Advisory Group, making it the first
Middle Eastern company to advise SBTi on a science-based net-zero target-setting for real estate and
construction companies around the world.
▪ Aldar – alongside The Ministry of Climate Change and Environment (MoCCAE) and 20 other UAE
companies – signed the UAE Climate-Responsible Companies Pledge, which aims to increase the
engagement of the private sector in the country’s decarbonisation drive, in line with the UAE Net Zero
by 2050 Strategic Initiative.
Corporate Debt
8
▪ During the third quarter, Aldar refinanced AED 1.4 billion of bank facilities due to mature in 2023 (Aldar
Properties: AED 500 million and Aldar Investment Properties: AED 900 million). In addition, Aldar entered
into AED 1.5 billion of new bank facilities. These facilities have been put in place whilst strictly adhering
to our LTV debt policies and form part of the AED 4.9 billion undrawn facilities that will support Aldar’s
ambitious growth acquisition plan.
▪ The combined effect of these new facilities has extended the weighted average debt duration for the
group from 3.6 years to 5.2 years with no material debt maturities until October 2025. Aldar remains
committed to its group leverage policies, 25% LTV for the Development Business and 40% LTV for Aldar
Investment.
▪ Aldar also continues to monitor and manage its interest rate risk exposure and currently has USD 350
million (AED 1.3 billion) of forward starting interest rate swaps to partially hedge the interest rate
exposure to future debt funding requirements as the group executes its growth strategy. As at the
reporting date these hedges had a derivative asset value of AED 206 million.
Corporate Highlights
People
▪ Aldar is on track to meet its commitment to create job opportunities for 1,000 UAE nationals by 2026.
Since the introduction of the NAFIS programme in September 2021, Aldar has hired 260 employees
across the group as part of the programme. Today, UAE nationals represent 40% of Aldar’s workforce
compared to 33.7% at the end of Q3 2021.
Customer Experience
▪ As a customer-centric organisation, Aldar continues to evolve and enhance experience at all touchpoints.
During Q3, Aldar’s NPS score increased 36% compared to the same period in 2021.
▪ The company’s loyalty programme, Darna saw a 10% increase in active users compared to the previous
quarter. During Q3, Darna became the first loyalty programme in the region to offer customers earn and
redeem capability through both Mastercard and Visa linked cards.
Innovation
▪ Aldar advanced its interest in global tech funds with a first-time investment in Fifth Wall’s Climate tech
fund and an additional investment into Moderne Ventures fund.
▪ Aldar awarded pilot contracts to five tech startups as part of the second cycle of its equity-free accelerator
programme, Scale Up. The selected businesses specialise in the rapidly evolving technologies of spatial
and artificial intelligence, blockchain, NFT applications and data analytics.
▪ During the first nine months of the year, Aldar launched 21 pilot projects with startups, 7 of which
launched during Q3. The pilots include solutions implemented in areas such as customer engagement,
sustainability, space utilization, employee wellbeing, smart development, and web 3.0.
8 Corporate Debt section excludes SODIC-ENDS-
For further information, please contact:
IR MEDIA
OMAR NASHAAT CECILLE ASIS
Aldar Properties Brunswick Group
+971 2 810 6237 +971 (4) 560 9600
onashaat@aldar.com ALDARFIN@brunswickgroup.com
About Aldar
Aldar Properties PJSC is the leading real estate developer and manager in the UAE with a diversified and sustainable
operating model centered around two core businesses: Aldar Development and Aldar Investment.
Aldar Development is a master developer of integrated, liveable, and thriving communities across Abu Dhabi’s most desirable
destinations, including Yas Island, Saadiyat Island, Al Raha, and Reem Island. It is responsible for developing Aldar’s c. 69
million sqm land bank and includes three businesses: Aldar Projects, which manages Aldar's fee-based development
management business including government housing and infrastructure projects; Aldar Ventures, which incubates and
nurtures new business opportunities and innovation areas; and Aldar Egypt, the platform focused on developing mixed-use
communities in Egypt.
Aldar Investment houses Aldar’s core asset management business comprising over AED 30 billion portfolio of investment
grade and income-generating real estate assets diversified across retail, residential, commercial, hospitality, and logistics
segments. Aldar Logistics owns a 70% stake in Abu Dhabi Business Hub which owns a strategically located warehousing,
industrial, and office complex in Industrial City Abu Dhabi with a total net lettable area of c. 166,000 sqm. Aldar Investment
also manages three core platforms: Aldar Education, Aldar Estates, and Aldar Hospitality and Leisure. Aldar Education
includes Aldar’s entire educational portfolio, with almost 33,000 students across 28 operated and managed schools, and a
growing network of 3,000 educators from over 100 nationalities, offering a wide range of curriculum and ancillary services
such as a Teacher Training Academy. Aldar Estates consolidates Aldar’s Retail Operations alongside existing Residential
and Commercial real estate operations within Provis and will further include Community Management under one integrated
property management platform. Aldar Hospitality and Leisure looks after Aldar’s portfolio of hotel and leisure assets, which
are anchored around Yas Island and Saadiyat, in addition to Ras Al Khaimah. It includes Aldar’s portfolio of 13 hotels,
comprising over 4,250 hotel keys and managing operations across golf courses, beach clubs, and marinas.
Aldar’s shares are traded on the Abu Dhabi Securities Exchange (Stock quote: ALDAR:UH), and is a profitable, cash-
generative business that provides recurring revenues, and benefits from a diverse and supportive shareholder base. Aldar
operates according to high standards of corporate governance and is committed to operating a long-term and sustainable
business in order to provide ongoing value for its shareholders.
Aldar is driven by a vision to be a leading real estate developer and manager in the region by playing a key role in the
development of quality, comfortable, desirable destinations that people can live in, work at and visit.
For more information on Aldar please visit www.aldar.com or follow us on: | positive |
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Al Ansari Financial Services PJSC
and its Subsidiaries
Revi ew report and condensed interim consolidated financial
statements for the nine-month period ended 30 September 2023
2023
THIRD QUARTERAL ANSARI FINANCIAL SERVICES PJSC
AND ITS SUBSIDIARIES
Table of contents Page No.
Review report on condensed interim consolidated financial
2
statements
Condensed interim consolidated statement of financial position 3
Condensed interim consolidated statement of profit or loss and
4
other comprehensive income
Condensed interim consolidated statement of changes in equity 5
Condensed interim consolidated statement of cash flows 6
Notes to the condensed interim consolidated financial statements 7 - 27Deloitte & Touche (M.E.)
Building 2, Level 3
Emaar Square
Downtown Dubai
P.O. Box 4254
Dubai
United Arab Emirates
Tel: +971 (0) 4 376 8888
Fax:+971 (0) 4 376 8899
www.deloitte.com
A ugust 17th, 2016
REVIEW REPORT ON CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
To the Shareholders
Al Ansari Financial Services PJSC
Dubai, United Arab Emirates
Introduction
We have reviewed the accompanying condensed interim consolidated balance sheet of Al Ansari Financial
Services PJSC (the “Company”) and its subsidiaries (together referred to as the “Group”) as at
30 September 2023 and the related condensed interim statements of profit or loss and other
comprehensive income, changes in equity and cash flows for the nine-month period ended 30 September
2023. Management is responsible for the preparation and presentation of this interim financial
information in accordance with International Accounting Standard 34 Interim Financial Reporting (“IAS
34”). Our responsibility is to express a conclusion on this interim financial information based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410,
“Review of Interim Financial Information Performed by the Auditor of the Entity”. A review of interim
financial information consists of making inquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A review is substantially less in
scope than an audit conducted in accordance with International Standards on Auditing and consequently
does not enable us to obtain assurance that we would become aware of all significant matters that might
be identified in an audit. Accordingly, we do not express an audit opinion.
Other Matters
The interim financial information for the nine month period ended 30 September 2022 was reviewed by
another auditor who expressed an unmodified conclusion on that information on 15 November 2022.
The financial statements of the Group for the year ended 31 December 2022 were audited by another
auditor who expressed an unmodified opinion on those statements on 21 February 2023.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying
interim financial information is not prepared, in all material respects, in accordance with IAS 34.
Deloitte & Touche (M.E.)
- -A1---ft..--
Firas Anabtawi
Registration No. 5482
08 November 2023
Dubai
United Arab Emirates
Akbar Ahmad (1141), Cynthia Corby (995), Faeza Sohawon (5508), Firas Anabtawi (5482), Georges Najem (809), Jazala Hamad (1267),
Mohammad Jallad (1164), Mohammad Khamees Al Tah (717), Musa Ramahi (872), Mutasem M. Dajani (726), Obada Alkowatly (1056),
Rama Padmanabha Acharya (701) and Samir Madbak (386) are registered practicing auditors with the UAE Ministry of Economy.Q"
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33Al Ansari Financial Services PJSC and its Subsidiaries
Condensed interim consolidated statement of profit or loss and other comprehensive income
for the nine-month period ended 30 September 2023
Three-month period ended Nine-month period ended
30 September 30 September
2023 2022 2023 2022
Note
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
AED’000 AED’000 AED’000 AED’000
Continuing operations Income
Net gain on currency exchange 131,262 164,524 411,869 454,206
Net commission income 154,028 135,677 451,447 396,756
Interest income 6,199 2,762 15,456 5,336
Other income 1,342 248 4,412 277
Total income 292,831 303,211 883,184 856,575
Expenses
Salaries and benefits 15 (113,844) (99,466) (333,714) (296,388)
General and administrative expenses (30,882) (25,909) (89,573) (76,946)
Depreciation and amortisation (21,595) (18,577) (61,630) (51,212)
Provision for expected credit losses - (300) (240) (1,600)
Finance cost (1,683) (656) (9,302) (1,587)
Bank charges (317) (349) (922) (919)
Profit from continuing operations 124,510 157,954 387,803 427,923
Profit from discontinued operations 16 - 2,127 - 6,113
Net profit for the period 124,510 160,081 387,803 434,036
Other comprehensive income - - - -
Total comprehensive income for the period 124,510 160,081 387,803 434,036
Net profit attributable to:
Shareholders of Al Ansari Financial Services P.J.S.C. 124,510 159,969 387,803 433,711
Non-controlling interest - 112 - 325
124,510 160,081 387,803 434,036
Profit attributable to shareholders of Al Ansari Financial
Services P.J.S.C.:
Continuing operations 124,510 157,954 387,803 427,923
Discontinued operations - 2,015 - 5,788
124,510 159,969 387,803 433,711
Basic and diluted earnings per share
Continuing operations - AED per share 17 0.0166 0.0211 0.0517 0.0571
Discontinued operations - AED per share 17 - 0.0002 - 0.0008
Total basic and diluted earnings per share – AED 0.0166 0.0213 0.0517 0.0579
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
4Al Ansari Financial Services PJSC and its Subsidiaries
Condensed interim consolidated statement of changes in equity
for the nine-month period ended 30 September 2023
Shareholders' Total Non-
Share Acquisition current Retained Shareholders' controlling
capital reserve account earnings equity interest Total equity
AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000
At 1 January 2022 (Audited) 50,000 1,381,043 96,934 983,980 2,511,957 14,513 2,526,470
Total comprehensive income for the period - - - 433,711 433,711 325 434,036
Distribution of dividend - (15,549) - (312,304) (327,853) - (327,853)
Distribution from current account - - (96,934) - (96,934) - (96,934)
At 30 September 2022 (Unaudited) 50,000 1,365,494 - 1,105,387 2,520,881 14,838 2,535,719
At 1 January 2023 (Audited) 75,000 286,143 - 1,245,087 1,606,230 - 1,606,230
Total comprehensive income for the period - - - 387,803 387,803 - 387,803
At 30 September 2023 (Unaudited) 75,000 286,143 - 1,632,890 1,994,033 - 1,994,033
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
5Al Ansari Financial Services PJSC and its Subsidiaries
Condensed interim consolidated statement of cash flows
for the nine-month period ended 30 September 2023
Nine-month period ended 30 September
Note 2023 2022
(Unaudited) (Unaudited)
AED’000 AED’000
Cash flows from operating activities
Net profit for the period 387,803 434,036
Adjustments for:
Depreciation and amortisation 4,5 61,630 55,173
Provision for expected credit losses 6.2 240 1,600
Finance cost 9,302 1,587
Provision for employees' end of service benefits 15 5,155 5,004
Gain on disposal of property, equipment and intangibles (374) (137)
Operating cash flows before settlement of employees’ end of
service benefits and changes in working capital 463,756 497,263
Settlement of employees’ end of service benefits (2,578) (2,825)
Changes in working capital:
Due from exchange houses and agents (176,284) (18,184)
Due from related parties (35,575) (20,690)
Prepayment and other receivables (15,830) (37,330)
Trade and other payables 159,040 167,081
Due to related parties 1,115 (109,235)
Due to exchange houses and agents 23,650 2,996
Restricted deposits with banks (903) (31,294)
Net cash generated from operating activities 416,391 447,782
Cash flows from investing activities
Payment for purchase of property, equipment and intangibles (29,170) (18,593)
Investment properties - (106)
Capital work in progress (2,533) (1,623)
Fixed deposits 163,721 (86,735)
Investments at fair value through profit & loss - (5)
Proceeds from sale of property, equipment and intangibles 1,238 146
Net cash generated from / (used in) investing activities 133,256 (106,916)
Cash flows from financing activities
Dividend paid - (327,853)
Disbursements from shareholders’ current account - (96,934)
Lease liabilities paid 9 (47,736) (40,041)
Proceeds from bank borrowings 100,000 4,006
Repayment of bank borrowings (455,101) -
Net cash used in financing activities (402,837) (460,822)
Net change in cash and cash equivalents 146,810 (119,956)
Cash and cash equivalents at the beginning of the period 2,226,625 2,681,258
Cash and cash equivalents at the end of the period 18 2,373,435 2,561,302
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
. 6Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements
for the nine-month period ended 30 September 2023
1. Legal status and principal activities
Al Ansari Financial Services P.J.S.C. (the “Company”) is a public joint stock company with trade license
number 758204 issued by the Department of Economy and Tourism in Dubai.
The Company was initially established as a limited liability company on 9 May 2016. The legal status of the
Company has been converted to a public joint stock company on 3 April 2023 by virtue of the Company’s
shareholders’ resolution.
Pursuant to a resolution dated 8 March 2023, the shareholders approved the listing of the Company’s
shares on Dubai Financial Market whereby 10% of its shares were offered to the general public in an Initial
Public Offering (“IPO”). The shares of the Company were listed on Dubai Financial Market on 6 April 2023.
As of the reporting date, Al Ansari Holding LLC (the “Parent Company”) held 90% of the issued share capital
whereas the remaining 10% is held by the general public.
The condensed interim consolidated financial statements for the period ended 30 September 2023
comprise the interim financial statements of the Company and its following subsidiaries (together referred
to as the “Group”).
Percentage holding
Name of the subsidiary 30 September 31 December
2023 2022
Al Ansari Exchange L.L.C. 100% 100%
Worldwide Cash Express Limited 100% 100%
Blue Horizon on Demand Labours Supply Services L.L.C. 100% 100%
Cash Trans Money & Valuables Transport Services L.L.C. 100% 100%
All the subsidiaries mentioned above are incorporated in the United Arab Emirates.
The Group is engaged in the business of buying and selling of foreign currencies and travellers’ cheques,
executing remittance operations in local and foreign currencies, payment of wages through establishing a
link to the operating system of “wages protection”, provision of special products and services (i.e. bill
payments, cash collections, sale and reload of multi-currency prepaid cards) and transportation of cash
and valuables.
The registered office of the Company is at PO Box 6176, Dubai, UAE.
. 7Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
2. Basis of preparation
a. Statement of compliance
These condensed interim consolidated financial statements have been prepared in accordance with the
International Accounting Standard 34. “Interim Financial Reporting” issued by the International Accounting
Standards Board.
The condensed interim consolidated financial statements do not include all the information required for a
complete set of consolidated financial statements prepared in accordance with International Financial
Reporting Standards (IFRS) and should be read in conjunction with the Group’s audited consolidated
financial statements for the year ended 31 December 2022. However, selected explanatory notes are
included to explain events and transactions that are significant to an understanding of the changes in the
Group’s financial position and performance since the last annual audited consolidated financial statements
as at and for the year ended 31 December 2022.
b. Basis of measurement
These condensed interim consolidated financial statements have been prepared under the historical cost
convention except for derivatives which are recognised at fair value, and on a going concern basis.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and
services.
No income of a seasonal nature was recorded in the condensed interim consolidated financial statements
for the nine-month period ended 30 September 2023. However, the results for the nine-month period
ended 30 September 2023 are not necessarily indicative of the results that may be expected for the
financial year ending 31 December 2023.
c. Functional and presentation currency
The condensed interim consolidated financial statements are presented in United Arab Emirates Dirhams
(AED) which is the Company's functional currency and the Group's presentation currency. All amounts have
been rounded to the nearest AED thousands (‘000s), unless stated otherwise.
d. Basis of consolidation
Subsidiary
A subsidiary is an investee controlled by the Group. The Group controls an investee if it is exposed to, or
has rights to, variable returns from its involvement with the investee and has the ability to affect those
returns through its power over the investee. The interim financial statements of a subsidiary are included
in the condensed interim consolidated financial statements from the date on which control commences
until the date when control ceases.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses (except for foreign
currency transaction gains or losses) arising from intragroup transactions, are eliminated in preparing the
condensed interim consolidated financial statements. Unrealised losses are eliminated in the same way as
unrealised gains, but only to the extent that there is no evidence of impairment.
. 8Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
2. Basis of preparation (continued)
e. Judgments and estimates
The preparation of these condensed interim consolidated financial statements requires management to
make judgments, estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, equity, income and expense. Actual amount may differ from these
estimates.
In preparing these condensed interim consolidated financial statements, the significant judgments made
by management in applying the Group’s accounting policies and the key sources of uncertainty in relation
to estimates were the same as those which were applicable to the audited consolidated financial
statements as at and for the year ended 31 December 2022.
3. Summary of significant accounting policies
The accounting policies used in the preparation of these condensed interim consolidated financial
statement are consistent with those used in the preparation of the Group’s consolidated financial
statements for the year ended 31 December 2022, and the notes attached thereto.
3.1 Adoption of new and revised Standards
New and amended IFRS Standards that are effective for the current period
During the nine-month period, the Group has applied a number of amendments to IFRS Standards and
Interpretations issued by the International Accounting Standards Board (IASB) that are effective for an
annual period that begins on or after 1 January 2023.
The following new and revised IFRSs, which became effective for annual periods beginning on or after
1 January 2023, have been adopted in these condensed interim consolidated financial statements. Their
adoption has not had any material impact on the disclosures or on the amounts reported in these
condensed interim consolidated financial statements.
New and revised IFRS Summary
IFRS 17 Insurance Contracts IFRS 17 requires insurance liabilities to be measured at a current
fulfilment value and provides a more uniform measurement and
presentation approach for all insurance contracts. These requirements
are designed to achieve the goal of a consistent, principle-based
accounting for insurance contracts. IFRS 17 supersedes IFRS 4
Insurance Contracts as of 1 January 2023.
Amendments to IFRS 17 • Amends IFRS 17 to address concerns and implementation
Insurance Contracts challenges that were identified after IFRS 17 Insurance Contracts
was published in 2017. The main changes are:
• Deferral of the date of initial application of IFRS 17 by two years to
annual periods beginning on or after 1 January 2023.
. 9Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
3. Summary of significant accounting policies (continued)
3.1 Adoption of new and revised Standards (continued)
New and amended IFRS Standards that are effective for the current period (continued)
New and revised IFRS Summary
Amendments to IFRS 17 • Additional scope exclusion for credit card contracts and similar
Insurance Contracts contracts that provide insurance coverage as well as optional
scope exclusion for loan contracts that transfer significant
insurance risk.
• Recognition of insurance acquisition cash flows relating to
expected contract renewals, including transition provisions and
guidance for insurance acquisition cash flows recognised in a
business acquired in a business combination.
• Clarification of the application of IFRS 17 in interim financial
statements allowing an accounting policy choice at a reporting
entity level.
• Clarification of the application of contractual service margin
(CSM) attributable to investment-return service and investment-
related service and changes to the corresponding disclosure
requirements.
• Extension of the risk mitigation option to include reinsurance
contracts held and non-financial derivatives.
• Amendments to require an entity that at initial recognition
recognises losses on onerous insurance contracts issued to also
recognise a gain on reinsurance contracts held.
• Simplified presentation of insurance contracts in the statement of
financial position so that entities would present insurance
contract assets and liabilities in the statement of financial position
determined using portfolios of insurance contracts rather than
groups of insurance contracts.
• Additional transition relief for business combinations and
additional transition relief for the date of application of the risk
mitigation option and the use of the fair value transition
approach.
Amendment to IFRS 17 The amendment permits entities that first apply IFRS 17 and IFRS 9 at
Insurance Contracts Initial the same time to present comparative information about a financial
Application of IFRS 17 and IFRS asset as if the classification and measurement requirements of IFRS 9
9 - Comparative Information had been applied to that financial asset before.
Amendments to IFRS 4 The amendment changes the fixed expiry date for the temporary
Insurance Contracts Extension exemption in IFRS 4 from applying IFRS 9 Financial Instruments, so
of the Temporary Exemption that entities would be required to apply IFRS 9 for annual periods
from Applying IFRS 9 beginning on or after 1 January 2023.
. 10Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
3. Summary of significant accounting policies (continued)
3.1 Adoption of new and revised Standards (continued)
New and amended IFRS Standards that are effective for the current period (continued)
New and revised IFRS Summary
Amendments to IAS 1 The amendments require that an entity discloses its material
Presentation of Financial accounting policies, instead of its significant accounting policies.
Statements and IFRS Practice Further amendments explain how an entity can identify a material
Statement 2 accounting policy. Examples of when an accounting policy is likely to
be material are added. To support the amendment, the Board has also
developed guidance and examples to explain and demonstrate the
application of the ‘four-step materiality process’ described in IFRS
Practice Statement 2.
Amendments to IAS 12 Income The amendments clarify that the initial recognition exemption does
Taxes relating to Deferred Tax not apply to transactions in which equal amounts of deductible and
related to Assets and Liabilities taxable temporary differences arise on initial recognition.
arising from a Single
Transaction
Amendments to IAS 12 Income The amendments provide a temporary exception to the requirements
Taxes relating to International regarding deferred tax assets and liabilities related to pillar two
Tax Reform - Pillar Two Model income taxes.
Rules
Amendments to IAS 8 The amendments replace the definition of a change in accounting
Accounting Policies, Changes in estimates with a definition of accounting estimates. Under the new
Accounting Estimates and definition, accounting estimates are “monetary amounts in financial
Errors statements that are subject to measurement uncertainty”. Entities
develop accounting estimates if accounting policies require items in
financial statements to be measured in a way that involves
measurement uncertainty. The amendments clarify that a change in
accounting estimate that results from new information or new
developments is not the correction of an error.
. 11Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
3. Summary of significant accounting policies (continued)
3.2 New and revised IFRS in issue but not yet effective and not early adopted
At the date of authorisation of these condensed interim consolidated financial statements, the Group has
not applied the following new and revised IFRS Standards that have been issued but are not yet effective:
Effective for
annual periods
New and revised IFRSs beginning on or after
Amendments to IFRS 16 Leases relating to Lease Liability in a Sale and Leaseback 1 January 2024
The amendment clarifies how a seller-lessee subsequently measures sale and
leaseback transactions that satisfy the requirements in IFRS 15 to be accounted
for as a sale.
Amendments to IAS 1 Presentation of Financial Statements relating to 1 January 2024
Classification of Liabilities as Current or Non-Current
The amendments aim to promote consistency in applying the requirements by
helping companies determine whether, in the statement of financial position,
debt and other liabilities with an uncertain settlement date should be classified
as current (due or potentially due to be settled within one year) or non-current.
The amendments also defer the effective date of the January 2020 amendments
by one year, so that entities would be required to apply the amendment for
annual periods beginning on or after 1 January 2024.
Amendments to IAS 1 Presentation of Financial Statements relating to Non- 1 January 2024
current Liabilities with Covenants
The amendment clarifies how conditions with which an entity must comply within
twelve months after the reporting period affect the classification of a liability.
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: 1 January 2024
Disclosures relating to Supplier Finance Arrangements
The amendments add disclosure requirements, and ‘signposts’ within existing
disclosure requirements, that ask entities to provide qualitative and quantitative
information about supplier finance arrangements.
Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Effective date
Investments in Associates and Joint Ventures (2011) relating to the treatment of deferred indefinitely.
the sale or contribution of assets from an investor to its associate or joint venture Adoption is still
permitted.
The Group anticipates that these new standards, interpretations, and amendments will be adopted in the
Group’s consolidated financial statements as and when they are applicable and adoption of these new
standards, interpretations and amendments may have no material impact on the consolidated financial
statements of Group in the period of initial application.
. 12Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
3. Summary of significant accounting policies (continued)
3.3 Financial risk management
The Group’s financial risk management objectives and policies are consistent with those disclosed in the
consolidated financial statements for the year ended 31 December 2022.
4. Right of use assets
30 September 31 December
2023 2022
(Unaudited) (Audited)
AED’000 AED’000
Properties 94,817 67,235
The movement of right of use assets during the nine-month period:
(Unaudited)
AED’000
At 1 January 2023 67,235
Additions (note 4.1) 71,628
Depreciation expense (44,046)
At 30 September 2023 94,817
4.1 Additions include AED 20 million in respect of a lease agreement entered into with a related party,
Al Ansari Real Estate LLC, for a fixed term of six years in relation to renting the head office premises
of the Group (note 7(a)).
. 13Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
5. Property, equipment and intangibles
Furniture and Computers, Motor Total
fixtures software, and vehicles
office
equipment
AED’000 AED’000 AED’000 AED’000
31 December 2022
Cost 111,395 76,139 9,623 197,157
Accumulated depreciation (86,691) (54,952) (6,447) (148,090)
Net book value as at 31 December
2022 (audited) 24,704 21,187 3,176 49,067
For the nine-month period
Additions 14,380 10,502 4,288 29,170
Reclassification (225) 225 - -
Disposals (808) (56) - (864)
Depreciation (8,690) (7,761) (1,133) (17,584)
Net book value as at 30 September
2023 29,361 24,097 6,331 59,789
30 September 2023 (Unaudited)
Cost 119,481 82,795 13,552 215,828
Accumulated depreciation (90,120) (58,698) (7,221) (156,039)
Net book value 29,361 24,097 6,331 59,789
6. Cash in hand and in transit, due from banks, exchange houses and agents
30 September 31 December
2023 2022
(Unaudited) (Audited)
AED’000 AED’000
Cash in hand and in transit
Cash in hand 805,458 1,029,310
Cash in transit 18,278 21,803
Total amount of cash in hand and in transit 823,736 1,051,113
. 14Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
6. Cash in hand and in transit, due from banks, exchange houses and agents (continued)
30 September 31 December
2023 2022
(Unaudited) (Audited)
AED’000 AED’000
Due from banks
Balances with banks in UAE
- Current accounts 1,158,410 783,448
- Fixed deposits 38,204 201,925
- Restricted deposits 41,342 40,476
- Advances to banks against credit card collections 5,666 5,218
- Credit card receivables 44,323 23,380
1,287,945 1,054,447
Balances with banks outside UAE
- Current accounts 368,231 374,290
- Restricted deposits 9,917 9,880
378,148 384,170
Less: Provision for expected credit losses (note 6.2) (6,240) (6,000)
371,908 378,170
Total amount due from banks 1,659,853 1,432,617
Due from exchange houses and agents
Balances with exchange houses and agents inside UAE 37 68
Balances with exchange houses and agents outside UAE 241,110 64,795
Total amount due from exchange houses and agents 241,147 64,863
Total balance of cash in hand and in transit, due from banks,
exchange houses and agents (note 6.3) 2,724,736 2,548,593
6.1. Amounts due from banks, exchange houses and agents are regularly assessed for credit quality
having regard to their credit rating assigned by international or respective country’s rating agencies
and the country risk.
. 15Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
6. Cash in hand and in transit, due from banks, exchange houses and agents (continued)
30 September 31 December
2023 2022
(Unaudited) (Audited)
AED’000 AED’000
Assessed high rated externally (A1-Baa3) 1,447,274 1,135,001
Assessed medium to low rated externally (Ba3-B1) 56,868 125,899
Unrated externally, Assessed high rated internally 221,957 132,941
Unrated – others 181,141 109,639
1,907,240 1,503,480
6.2. The movement for provision for expected credit losses during the nine-month period:
Stage 1
AED’000
At 1 January 2023 (Audited) 6,000
Provision during the period 240
At 30 September 2023 (Unaudited) 6,240
6.3 Due to the nature of the Group’s business, the ageing of amounts due from banks, other than fixed
deposits and restricted deposits, and from exchange houses is within 30 days.
7. Related party transactions
Related parties comprise shareholders, directors, key management personnel, their related businesses and
the Group’s associates and joint ventures.
The Group enters into transactions with other entities that fall within the definition of a related party as
defined in the International Accounting Standard No. 24: Related Party Disclosures. These transactions are
entered into in the normal course of business and mainly include foreign exchange, remittance
arrangements and rental of office / branch premises.
. 16Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
7. Related party transactions (continued)
The significant transactions included in these condensed interim consolidated financial statements are as
follows:
Nine-month period ended 30 September
2023 2022
(Unaudited) (Unaudited)
AED’000 AED’000
Transactions with related parties (companies under
common control)
Commission income earned – Al Ansari Exchange Co. WLL,
Kuwait 363 228
Interest paid – Group entities - 432
Right of use asset for head office lease - Al Ansari Real
Estate LLC (a) 20,031 -
Finance Cost and depreciation 3,225 -
a) During the nine-month period ended 30 September 2023, the Group entered into a lease agreement
with a related party, Al Ansari Real Estate LLC, for a fixed term of six years in relation to renting the
head office premises of the Group resulting in addition of right of use asset and corresponding lease
liability of AED 20 million.
7.1 Due from / to related parties (companies under common control)
30 September 31 December
2023 2022
(Unaudited) (Audited)
AED’000 AED’000
Due from related parties
Group entities 35,792 217
Due to related parties
Group entities 1,932 817
. 17Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
7. Related party transactions (continued)
7.1 Due from / to related parties (companies under common control) (continued)
Due from related parties represents unsecured interest free current accounts which have arisen in the
normal course of business. The expected credit loss on the amount due from related parties is immaterial.
Due to related parties represents unsecured interest free current accounts which have arisen under the
normal course of business. Certain due to related party balances as at 30 September 2022 were subject to
an average interest rate of 1.15%. These balances were fully settled during 2022.
7.2 Key management personnel
The total amount of compensation paid to key management personnel during the period is as follows:
Nine-month period ended 30 September
2023 2022
(Unaudited) (Unaudited)
AED’000 AED’000
Salaries and other benefits 9,962 8,216
Key management personnel include the Group’s Chief Executive Officer, Group’s Deputy Chief Executive
Officer, Group’s Chief Financial Officer, Group’s other C-Suite officers, and department heads.
8. Prepayments and other receivables
30 September 31 December
2023 2022
(Unaudited) (Audited)
AED’000 AED’000
Prepaid expenses 9,322 7,868
Bills receivables 15,573 10,128
Security deposits and other receivables (note 8.1) 61,005 53,674
Deposit with tax authorities (note 8.2) 12,801 12,801
Commission income receivable in relation to WPS 220 132
Positive value of overnight foreign currency forwards 10,910 9,398
109,831 94,001
8.1 Other receivables are primarily related to counterparties in the UAE. The expected credit loss on
other receivables is insignificant.
. 18Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
8. Prepayments and other receivables (continued)
8.2 Deposit with tax authorities
Voluntary disclosures filed for tax periods from January 2018 to January 2019 – AED 0.97 million
On 29 March 2019, the Group had filed voluntary disclosures as a result of applying incorrect
apportionment formula for allocating input tax into taxable and exempt supplies for the tax period from
January 2018 to January 2019. The Federal Tax Authority (FTA) accepted the voluntary disclosures,
however, levied a penalty of AED 0.97 million, on the tax shortfall of AED 1.88 million, originated as a result
of using an inappropriate method of apportionment.
The Group has challenged the levy of these penalties based on the contention that the Group had a
refundable tax position during the tax period January 2018 to December 2018 and therefore, any tax
shortfall should have been adjusted with the excess refundable position.
On 30 August 2022, the Federal Court of First Instance decided the matter against the Group. The Group
filed an appeal against the decision on 29 September 2022. However, on 16 November 2022, the Federal
Court of Appeal upheld the decision of Federal Court of First Instance against which the Group has filed an
appeal with Federal Supreme Court which is pending hearing.
Tax assessment for tax periods from January 2018 to January 2019 – AED 6.53 million
During the year 2020, The FTA had assessed that the share of income received from sending agents in
relation to inward remittances is subject to standard rate of tax. Accordingly, FTA had assessed short
payment of VAT by the Group and related penalties amounting to AED 9.43 million based on the view that
the recipients of the service reside in UAE. In 2021, the FTA reduced its original assessment to AED 6.53
million. The Group is of the view that receipt of such income should be zero rated in accordance with VAT
regulations due to the fact that the services are provided to the sending agents who are non-resident
persons at the time of providing such services and filed an appeal with Federal Court of First Instance.
On 8 February 2022, the Federal Court of First Instance has decided the matter in favour of the Group.
However, the FTA filed an appeal challenging the decision of the Court. On 1 February 2023, the Federal
Court of Appeal upheld the decision of Federal Court of First Instance, against which FTA has filed an appeal
with the Federal Supreme Court which is pending hearing.
Voluntary disclosures filed for tax periods from February 2019 to October 2020 – AED 5.30 million
Further, as a result of above-mentioned tax assessment and to avoid further penalties, the Group has filed
voluntary disclosures in 2021 for tax periods from February 2019 to October 2020 and additionally paid
AED 5.30 million (VAT and related penalties). The Group reserves the right to get a refund from FTA if the
matter is decided by the Federal Supreme Court in the Group’s favour.
. 19Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
9. Lease liabilities
The movement of lease liabilities is provided below:
2023
(Unaudited)
AED’000
At 1 January 2023 57,623
Additions 71,628
Finance cost on lease liability 2,951
Payments (47,736)
At 30 September 2023 84,466
30 September 31 December
2023 2022
(Unaudited) (Audited)
AED’000 AED’000
Non-current 45,943 23,658
Current 38,523 33,965
84,466 57,623
10. Trade and other payables
30 September 31 December
2023 2022
(Unaudited) (Audited)
AED’000 AED’000
Travel card payables (note 10.1) 203,298 168,916
Remittances payable (note 10.2) 164,133 114,234
Payable balances in relation to Wage Protection System 176,860 130,122
Bills payables 49,363 28,136
Payable to Western Union in lieu of remittance funding 12,115 12,780
Accrued expenses 65,360 59,068
Other payables 145,403 144,236
816,532 657,492
10.1 Travel card payables represent money loads from customers which are placed with Abu Dhabi Islamic
Bank and exclusively used for settlements to Visa International upon spending by the customers.
10.2 Represents pending settlements to beneficiaries for the remittances made by the customers.
. 20Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
11. Bank borrowings
30 September 31 December
2023 2022
(Unaudited) (Audited)
AED’000 AED’000
Term loan facility (note 11.1) - 298,750
Bank overdraft (note 11.2) - 50,000
- 348,750
11.1 Term loan facility
On 24 November 2022, the Group arranged a term loan facility of AED 1,000 million, subsequently reduced
to AED 500 million on 12 June 2023, from a local commercial bank for a period of three years with an initial
drawdown of AED 300 million against the facility on 29 December 2022. The facility can be drawn in
multiple tranches whereby each tranche is repaid in full along with the interest within 90 days of utilisation,
with an option to rollover the principal amount throughout the term. As on the reporting date, the utilised
tranche of term loan facility was repaid in full and not rolled over.
As per the facility agreement, each drawdown should be secured by way of pledge over fixed deposits for
a similar amount by the Group or the Parent Company and carries interest at three-month EIBOR plus a
fixed margin per annum.
11.2 Bank overdraft
The Group has total overdraft facilities arranged with various banks for AED 600 million (2022: AED 50
million). These facilities are available to meet the working capital requirements of the Group and carry
variable interest rates plus fixed margins. These facilities are repayable on demand and are secured by
account pledge over the margin deposits placed by the Group or the Parent Company.
As on the reporting date, bank overdraft facilities were repaid in full.
12. Contingencies and commitments
30 September 31 December
2023 2022
(Unaudited) (Audited)
AED’000 AED’000
Contingent liabilities
Guarantees issued by banks in favour of:
Central Bank of the UAE (“CBUAE”) 235,000 220,000
Financial institutions for correspondent relationships
(note 12.1) 11,826 11,826
Total guarantees arranged and issued 246,826 231,826
Al Ansari Financial Services PJSC and its Subsidiaries
. 21Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
12. Contingencies and commitments (continued)
12.1 The Group has arranged guarantees from local commercial banks, drawn in favour of certain
correspondent banks and business partners as required under the terms of the respective
correspondent arrangements.
12.2 The commitment in respect of capital expenditure incurred as at 30 September 2023 amounts to
AED 3.44 million (31 December 2022: AED 3.70 million).
13. Share capital
As at 30 September 2023, the authorised issued and fully paid share capital of the Company comprised
7,500,000,000 ordinary shares of AED 0.01 each (31 December 2022: 7,500,000,000 ordinary shares of
AED 0.01 each).
14. Acquisition reserve
On 1 January 2018, the Company had entered into an equity acquisition arrangement with its shareholders
whereby all the shareholders transferred their individual equity interest in the Group entities to the
Company.
The fair value of the net assets that were acquired at the effective date of control were treated as
Acquisition reserve, a reserve distributable to the shareholders, as there was no consideration paid to
shareholders.
15. Salaries and benefits
Nine-month period ended 30 September
2023 2022
(Unaudited) (Unaudited)
AED’000 AED’000
Salaries and wages 250,437 216,779
Staff bonuses and incentives 21,055 19,197
Leave salary and air tickets 27,232 23,337
Employees’ end of service benefits 5,155 5,004
Other benefits 29,835 32,071
333,714 296,388
16. Discontinued operations
On 30 September 2022, the Board resolved to carry out an internal restructuring of the Group whereby all
the shares owned by the Company in Al Ansari Real Estate LLC and Al Ansari Financial Brokerage LLC were
sold to the Parent Company on 24 November 2022 and 30 November 2022 respectively.
. 22Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
16. Discontinued operations (continued)
Financial information and cash flow information presented are for the nine-month period from 1 January
to 30 September 2022:
2022
(Unaudited)
AED’000
Net commission income 4,550
Interest income – net 1,420
Rental income 12,514
18,484
Salaries and benefits (2,391)
General and administrative expenses (6,019)
Depreciation and amortisation (3,961)
Profit from discontinued operations 6,113
Net cash used in operating activities (11,032)
Net cash used in investing activities (1,903)
Net cash flows from financing activities 4,006
Net cash used for discontinued operations (8,929)
17. Basic and diluted earnings per share
Basic and diluted earnings per share - Continuing operations
Nine-month period ended 30 September
2023 2022
(Unaudited) (Unaudited)
Profit from continuing operations for the period
attributable to the shareholders (AED ‘000) 387,803 427,923
Weighted average Number of ordinary shares during the
year (‘000) 7,500,000 7,500,000
Basic and diluted earnings per share – Continuing operations
(AED) 0.0517 0.0571
. 23Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
17. Basic and diluted earnings per share (continued)
Basic and diluted earnings per share - Discontinued operations
Nine-month period ended 30 September
2023 2022
(Unaudited) (Unaudited)
Profit from discontinued operations for the period
attributable to the shareholders (AED ‘000) - 5,788
Weighted average Number of ordinary shares during the
year (‘000) 7,500,000 7,500,000
Basic and diluted earnings per share – Discontinued
operations (AED) - 0.0008
18. Cash and cash equivalents
30 September 31 December 30 September
2023 2022 2022
(Unaudited) (Audited) (Unaudited)
AED’000 AED’000 AED’000
Cash in hand and in transit 823,736 1,051,113 987,486
Due from banks - gross 1,666,093 1,438,617 1,713,350
Due to banks (26,931) (10,824) (9,229)
2,462,898 2,478,906 2,691,607
Less:
Fixed deposits with an original maturity
longer than three months (38,204) (201,925) (96,735)
Restricted deposits with banks inside UAE (41,342) (40,476) (37,176)
Restricted deposits with banks outside UAE (9,917) (9,880) (9,880)
2,373,435 2,226,625 2,547,816
Add:
Cash and cash equivalent classified as
assets held for sale - - 13,486
Total cash and cash equivalents 2,373,435 2,226,625 2,561,302
. 24Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
19. Reporting segments
For management purposes, the Group is organised into business units based on relevant business activities
and there is one reportable segment as of 30 September 2023 (3 main reportable segments as of 30
September 2022), as follows:
• Money Exchange and Remittances: the Group primarily provides cross-border and domestic
remittances, purchase and sale of foreign currencies, processing salaries, bill collections and sale of
prepaid travel cards. The Group provides these services to its customers through a wide branch
network, digital channels and smart counters.
• Lease of real estate properties: the Group owns real estate properties and leases it to individuals and
businesses for residential and commercial purposes.
• Securities brokerage: the Group provides brokerage services in local securities traded on Dubai
Financial Market (DFM) & Abu Dhabi Stock Exchange (ADX).
The Senior Management Committee is the Chief Operating Decision Maker (CODM) and monitors the
segment results for the purposes of making decisions in relation to resource allocation and performance
assessment.
For the nine-month ended 30 September 2023 (Unaudited)
Money Lease of Securities Others Segment
exchange & real estate brokerage Total
remittances properties
AED’000 AED’000 AED’000 AED’000 AED’000
Revenue 877,048 - - 6,139 883,187
Expenses
Salaries and benefits, general,
administrative and other expenses (490,659) - - (4,725) (495,384)
Segment profit for the period 386,389 - - 1,414 387,803
. 25Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
19. Reporting Segments (continued)
For the nine-month ended 30 September 2022 (Unaudited)
Money Lease of Securities Others Segment
exchange & real estate brokerage Total
remittances properties
AED’000 AED’000 AED’000 AED’000 AED’000
Revenue 848,868 - - 7,707 856,575
Expenses
Salaries and benefits, general,
administrative and other expenses (425,956) - - (2,696) (428,652)
Segment profit from continued
operations 422,912 - - 5,011 427,923
Profit from discontinued operations - 4,635 1,478 - 6,113
Segment profit for the period 422,912 4,635 1,478 5,011 434,036
The Group generates all its revenue from the UAE and all non-financial assets are located in the UAE.
20. Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based
on the presumption that the transaction to sell the asset or transfer the liability takes place either:
• in the principal market for the asset or liability, or
• in the absence of a principal market, in the most advantageous market for the asset or liability. The
principal or the most advantageous market must be accessible to the Company.
Financial instruments comprise financial assets and financial liabilities.
Financial assets consist of cash in transit, due from banks, due from exchange houses and agents, due from
related parties and other receivables. Financial liabilities consist of trade and other payables, due to banks,
due to exchange houses and agents, due to related parties, bank borrowings and lease liabilities. Fair value
of all financial assets and financial liabilities that are measured at amortized cost approximate their fair
value.
. 26Al Ansari Financial Services PJSC and its Subsidiaries
Notes to the condensed interim consolidated financial statements (continued)
for the nine-month period ended 30 September 2023
20. Fair value measurement (continued)
Fair value hierarchy
The Company uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities that the Company can
access at the measurement date.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly or indirectly.
Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not
based on observable market data.
The carrying amount of financial assets and financial liabilities approximates their fair values.
Other receivables include forward contracts which are valued based on the difference between the
contractual forward rate and forward rate determined on the reporting date.
21. Litigations
The Group is subject to litigations in the normal course of its business. The Group expects that the outcome
of these legal cases will not have a material impact on the Group's condensed interim consolidated
financial performance or condensed interim consolidated financial position.
22. Subsequent events
At the General Meeting of the shareholders held on 1 November 2023, the shareholders, based on
recommendation of Directors, have approved a cash dividend of AED 0.04 per outstanding share
amounting to AED 300 million. There are no other significant events after the reporting period that would
require adjustment or disclosure in these condensed interim consolidated financial statements.
23. Corporate tax in UAE
On 9 December 2022, the UAE Ministry of Finance released Federal Decree-Law No. 47 of 2022 on the
Taxation of Corporations and Businesses (Corporate Tax Law or the CT Law) to enact a Federal corporate
tax regime in the UAE. The new CT regime became effective for accounting periods beginning on or after
1 June 2023. As the Group’s accounting year ends on 31 December, accordingly the effective
implementation date for the Group will start from 1 January 2024 to 31 December 2024, with the first
return to be filed on or before 30 September 2025.
The Group will be subject to a 9% corporate tax rate on taxable income above a threshold of AED 375,000.
As per the Group’s assessment, there is no deferred tax impact on account of the CT Law on these
condensed interim consolidated financial statements. The Group will continue to assess the possible
impact of the CT Law from current and deferred tax perspective based on clarifications and guidance on
the implementation of CT Law.
. 27 | neutral |
Press Release
Drake & Scull International Announces Q3 2022
Results
Dubai, UAE, 14 November 2022: Drake & Scull International PJSC (DSI), a
regional market leader in integrated design, engineering, and development in the
(MEP), Water and Power and Oil and Gas sectors released today its reviewed
financial results for the Q3 ended 30 September 2022 reporting a Gross Profit of
AED 4 million compared to a Gross Profit of AED 15 million for the same period in
2021.
Revenue achieved was AED 64 million compared to AED 111 million for the same period
in 2021.
Loss from continued operations was AED 158 million compared to a profit of AED 58
million for the same period in 2021.
Reduction in general and administrative expenses from AED 46 million to AED 39
million, equivalent to 16%, compared to the same period in 2021.
Accumulated Losses increased to AED 5,031 million compared to AED 4,874 million as
at 31 December 2021
Total Negative Equity increased to AED 4,041 million compared to AED 3,880 million as
at 31 December 2021.
DSI order backlog is AED 443 million driven by ongoing operations in the UAE and
overseas countries.
Commenting on the announcement, Eng. Shafiq Abdelhamid, Chairman of DSI
PJSC, said, “Further to our previous announcement on 24 October 2022 related to
completing the restructuring process, we are currently focusing on obtaining the
approval of the competent court to be able to implement the plan.
The Expert with the support of the Company and the Company’s advisers completed
their report and submitted it to the Court for their consideration just prior to the last
hearing which was held on 18 July 2022. Moreover, the public prosecutor review
the expert report and send his opinion to the court with his recommendation to
proceed with the restructuring process, the court adjourned the next hearing till
November 23rd 2022 to issue its final judgment.Once the procedures for the application submitted to the court are completed, the
rest of the procedures agreed upon in the plan will be completed, including raising
the company's capital and submitting a request to return the company's shares to
trade in the Dubai Financial Market.
We are grateful for the patience of our shareholders as we seek to restructure the
company, thereby protecting as far as possible their investments and the livelihoods
of many hundreds of families. We will continue to make all possible efforts to ensure
that DSI PJSC shares will resume trading on the Dubai Financial Market after the
completion of the restructuring”.
-Ends-
About Drake & Scull International PJSC
Drake & Scull International PJSC (DSI) is a regional market leader in world-class Integrated Design,
Engineering, and Construction projects. DSI‘s main business streams include Engineering (MEP),
Construction, District cooling plants, Oil & Gas, and Water & Wastewater Treatment plants. The company
operates across the GCC & rest of the Middle East as well as Europe. DSI has completed more than 700
projects around the world in the Residential and mixed-use real estate, Aviation, Power plants, District
cooling plants, Hospitality, Healthcare, Renewable energy, Data center, Petrochemical, Rail, Commercial,
Government, Leisure and Infrastructure sectors.
For media inquiries, please contact:
Drake & Scull International PJSC
Sadeen Ghosheh
Investor Relations
Tel: +971-4-528-3444
E-mail: IR@drakescull.com | neutral |
MANAGEMENT DISCUSSION & ANALYSIS
H1 2022
www.uab.aeKey Highlights – H1’2022
UAB Reports Financial Results for H1 2022
UAB reported H1 2022 Net Profit ofAED 83.3 Mn as compared to Net Profit of AED 26.9 MninH1 2021 (↑ 209%), simultaneously
Q2’2022 Net profit of AED 52.9 Mnhas recorded a increase of 74%when compared to net profit recorded in Q1 2022 of AED 30.4 Mn
YoY Income higher by 3%
Operating Profit higher
from 236m in H1 2021 to 243m in H1
by 9% (YoY)
2022
from 117m in H1 2021 to 127m in H1 2022
52% YoY reduction in
3% YoY Reduction in Operating
Provisions
Expenses
Cost of Risk reduced from 2.1% in H1’21
With ongoing focus to rationalize costs
to 1.1% in H1’22, also reduced from FY 21
ratio of 1.6%
Adequate Liquidity profile
Maintained
CAR at 13.2%
(ASR 83%, ELAR 15%)
CET1 at 12.0%
Above currently applicable regulatory
Loan : Deposit Ratio
requirements
Maintained at 80%
2Management Discussion & Analysis – H1 2022
Financial Performance Summary
United Arab Bank P.J.S.C ("UAB" or “the Bank”) announces its Financial Results for the half year ending 30th Jun 2022.
Strong performance is evidenced across the period with the Bank reporting a Net Profit of AED 83.3m for H1 2022
compared to a Net Profit of AED 26.9m in H1 2021, similarly Net profit for Q2 2022 has increased by 74% in comparison
to Q1 2022 as the successful execution of the turnaround strategy has paved the way for a return to profitability with UAB
continuing to strengthen its core businesses; streamline the cost base; and maintain key banking fundamentals.
UAB’s financial performance was aided by a significant progress within the ‘core’ businesses recording a 3% YoY uplift in
Total Operating Income, whilst Operating Expenses continue to be robustly managed and recorded a reduction of 3% YoY.
The Balance sheet has been significantly strengthened with a focus on asset quality which resulted in a 52% YoY reduction
in Net Impairment Loss compared to H1 2021. Cost of Risk reduced from 2.1% in H1 2021 to 1.1% in H1 2022.
Provision coverage (including collateral) has improved to 132% whereas NPL ratio has been reduced to 11%
These positive results provide tangible evidence that the Bank’s low risk and efficient UAE focused business model is
appropriate and our turnaround strategy is delivering positive results.
The Bank’s distribution network comprises of 6 full fledged commercial branches and 17 ATMs providing full banking
services to our customers.
Moody's Rating Fitch Rating
Bank Deposits-Long Term Ba1 Long Term IDR BBB+
Outlook Stable Outlook Stable
3Financial Performance – H1 2022
AED millions
2022-Actuals 2021 -Actuals Variance
Income Statement H1'22 Q2 Q1 FY'21 Q4 Q3 H1'21 Q2 Q1 QoQ% YoY%
Net Interest Income 140.9 74.0 66.9 277.8 62.8 71.7 143.3 79.1 64.1 11% -2%
Non-Interest Income 101.8 51.8 50.0 171.8 50.3 28.4 93.1 24.9 68.2 4% 9%
Total Operating Income 242.7 125.9 116.9 449.6 113.1 100.2 236.4 104.0 132.3 8% 3%
Operating Expenses (116.0) (57.6) (58.5) (243.7) (63.4) (60.6) (119.7) (60.1) (59.6) -2% -3%
Profit before Impairment Loss 126.7 68.3 58.4 205.9 49.7 39.6 116.6 43.9 72.7 17% 9%
Net Impairment Loss (43.4) (15.4) (28.0) (135.7) (24.2) (21.8) (89.7) (27.2) (62.5) -45% -52%
Net Profit 83.3 52.9 30.4 70.2 25.5 17.8 26.9 16.7 10.2 74% 209%
2022- Actuals 2021- Actuals Variance
Balance Sheet Q2 Q1 Q4 Q3 Q2 Q1 QoQ% YoY%
Loans and Advances 8,374 7,884 8,213 8,035 8,035 8,501 6% 4%
Investment Securities 3,425 3,808 3,530 3,582 3,402 3,299 -10% 1%
Other Assets 2,949 2,328 3,436 2,649 3,112 2,620 27% -5%
Total Assets 14,748 14,021 15,180 14,267 14,549 14,419 5% 1%
Customer Deposits 10,517 10,120 10,406 10,328 10,639 10,839 4% -1%
Due to Banks 1,911 1,582 2,411 1,702 1,544 1,373 21% 24%
Other Liabilities 919 818 851 737 869 772 12% 6%
Total Liabilities 13,347 12,520 13,668 12,768 13,052 12,984 7% 2%
Shareholders' Equity 1,402 1,501 1,512 1,499 1,497 1,435 -7% -6%
Total Liabilities & Shareholders'
Funds 14,748 14,021 15,180 14,267 14,549 14,419 5% 1%Key Ratios – H1 2022
Key Ratios 2022 2021 Variance
Q2 Q1 Q4 Q3 Q2 Q1 QoQ% YoY%
Regulatory
Capital Adequacy 13.2% 14.3% 13.8% 13.6% 13.4% 14.2% -1.1% -0.2%
Tier 1 12.0% 13.1% 12.6% 12.5% 12.3% 13.0% -1.1% -0.3%
CET 1 12.0% 13.1% 12.6% 12.5% 12.3% 13.0% -1.1% -0.3%
Advances to Stable Resources 82.8% 80% 81% 77% 76% 79% 2% 7%
Eligible Liquid Assets 15% 16% 19% 15% 17% 15% -1% -2%
Performance
Cost : Income Ratio 46% 50% 54% 54% 51% 45% -4% -5%
NPL's : Gross Loans 11.0% 12.4% 12.6% 15.4% 16.7% 12.2% -1.4% -5.8%
Provision Coverage 79% 73% 71% 82% 82% 105% 6% -3%
Provision Coverage (Including Collaterals) 132% 126% 122% 121% 99% 131% 6% 34%
Loans : Deposits Ratio 80% 78% 79% 78% 76% 78% 2% 4%
Return on Average Equity 11.5% 8.2% 4.7% 4.1% 3.7% 2.9% 3.3% 7.8%
Return on Average Assets 1.1% 0.8% 0.5% 0.4% 0.4% 0.3% 0.3% 0.8%
Cost of Risk 1.1% 1.4% 1.6% 1.7% 2.1% 2.9% -0.4% -1.1%
CASA % 31% 30% 30% 27% 29% 27% 1% 2%
5Income Statement Review
Total Income for H1’
H1 2021 Total Income H1 2022
2022 was AED 243m,
Increased 8%quarter-
on-quarter & 3%(YoY)
39% 42%
58%
61%
Net Interest Income Non Interest Income Net Interest Income Non Interest Income
NIM %
The NIMshave
2.42% increased in Q2’22 as
2.19% 2.13% the bank benefits
1.92%
from the higher
interest rate
environment
FY2020 FY 2021 Q1-22 Q2-22
6Income Statement Review (cont.)
Operating Expenses Provision Charge (AEDm)
(AEDm)
90
(52%)
120 (3%)
116
43
H1 '21 H1 '22
H1 '21 H1 '22
OperatingExpensesforH12022wereAED 116m,representing3%reductionagainstH12021,astheBankcontinuestorationalizeits
cost base through optimization of staff costs and avoiding non essential general and administrative expenditure and branch
rationalization.
Net Impairment Lossdropped (52%) vs. H1 2021on a total portfolio basis, as the bank focuses on higher quality assets and on its
remediation efforts and recoveries.
7Balance Sheet Review
Total Funding
Dec-21 Jun-22
10% 10%
6% 6%
16% 13%
69%
71%
Customer Deposits Due to Banks Other Liabilities Equity Customer Deposits Due to Banks Other Liabilities Equity
Customer Depositshave and will continue to represent the Bank’s key source of funds contributing 71% of total funding
compared to 69% in Dec’21.
CASADeposits continue to grow and are now 31% of total deposits which is higher than Dec’21, as the Bank continues to
deploy various initiatives to efficiently manage the cost of funds.
8Liquidity Metrics and Capital Ratios
LOANS:DEPOSITS RATIO ADVANCES TO STABLE CAPITAL ADEQUACY RATIO
RESOURCES RATIO
CB UAE threshold 13.8%
under TESS
(110%) 13.2%
82.8%
79% 80% 80.7%
Dec-21 Jun-22 Dec-21 Jun-22 Dec-21 Jun-22
Y
N
D
I
N
G
U
I
D
I
T
P
I
T
A
L
U Q A
F NOCANS-ACO:TROET PAOL RDTEFPOOLSIOIT S
L
I ELIGIBLE LIQUID C
RISK WEIGHTED ASSETS
(AEDm) ASSETS RATIO
YoY -56% (AEDm)
19.1%
1
31% 11,924 11,684
30%
15.3%
CB UAE threshold
under TESS
(7%)
Dec-21 Jun-22 Dec-21 Jun-22
Dec-21 Jun-22
Loan : Deposit Ratio of 80% Satisfactory Liquidity base Overall Capital adequacy of 13.2%
underpins a robust liquidity profile, substantiated by both ASR / ELAR position with a Common Equity Tier1
whilst CASAcompositionat 31% Ratios managed well above CB (CET1) ratio of 12.0%, ahead of
supports reduction in cost of funds UAE thresholds currently applicable regulatory
requirements
9Asset Quality
NPL : GROSS LOANS
COVERAGE RATIOS
132%
12.6%
122%
11.0%
Dec-21 Jun-22 Dec-21 Jun-22
UABcontinueswithitsdecisiveandprudentprovisioningapproach,andtoproactivelyrecognizeproblemloanswhichhasresulted
in NPL ratio of 11.0%in Jun 2022 comparedto 12.6%in Dec2021.The Provision Coverage ratio (including collaterals)increased to
132%asatJun2022comparedto122%inDec2021
10 | neutral |
Borouge Classification: Public
Q3 2023 Financial Results
Market Announcement
BOROUGE REPORTS 22% Q3 2023 NET PROFIT INCREASE
Strong production performance, high sales volumes, targeted cost
management and revenue optimisation from Value Enhancement
Programme help Borouge mitigate impact of challenging global market
conditions
Company reports Q3 2023 net profit of $282 million (AED1.04 billion)
and strong margins, demonstrating business resilience versus industry
peers
As the Value Enhancement Programme surpasses target and delivers
$420 million positive impact in first nine months of 2023, Borouge further
raises the programme’s target to $500 million
ABU DHABI, UAE – 30 October 2023: Borouge Plc, a leading petrochemicals company that
provides innovative and differentiated polyolefins solutions, has delivered robust third-quarter
performance, reporting a net profit of $282 million (AED1.04 billion) for the quarter ended
September 30, marking a 22% increase over the previous quarter.
Strong production performance, targeted cost management and revenue optimisation from its
ambitious Value Enhancement Programme helped Borouge display resilience in the face of a
subdued global environment and challenging polyolefins market. Borouge’s Value Enhancement
Programme delivered a $420 million positive impact in the first nine months of 2023, surpassing
its ambitious target of $400 million set for the 2023 financial year.
Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge, commented: “Borouge has
delivered robust operating and financial performance this quarter, leveraging the company’s
competitive advantages and maintaining disciplined cost management. Consequently, sales
volumes have grown, and we remain committed to innovation to expand market share and
maintain strong pricing premia. We are pleased to announce that we have exceeded the target of
our ambitious Value Enhancement Programme and as a result, we have committed to pursuing a
higher target to further mitigate the current challenging market environment. The company is
proving its resilience amid tough global conditions and is well placed to deliver further growth as
the market cycle turns. Borouge has distributed an interim dividend of $650 million in the third
quarter.”
In line with previous market communication, the company has committed a dividend of $1.3 billion
(15.9 fils per share) for the 2023 financial year, which equates to 6.3% current dividend yield.Borouge Classification: Public
Q3 2023 Financial Results
Market Announcement
Highlights for the three months ended 30 September 2023: Third-quarter revenue increased
6% quarter-on-quarter, reaching $1.5 billion, and declined 11% on a year-on-year basis. Borouge
reported a net profit of $282 million in the third quarter of 2023, increasing by 22% quarter-on-
quarter, supported by a 16% increase in sales volumes. On a year-on-year basis, net profit
declined by 9%. While top- and bottom-line performance in the third quarter faced market related
pricing challenges, Borouge delivered a healthy adjusted EBITDA margin of 40%, up 3%
compared to the previous quarter, reflecting the company’s improved operational efficiencies.
Cash conversion was very strong at 97%, with a healthy adjusted operating free cash of $573
million, up 15% quarter-on-quarter. Pressures from the general market weakness were partially
offset by the positive impact of the Value Enhancement Programme, as well as by healthy sales
volumes on the back of strong operational performance. High production volumes of both
polyethylene (PE) and polypropylene (PP) included 38% of total sales in the value-added
infrastructure segment, representing the unique positioning of Borouge’s products.
Highlights for the nine months ended 30 September 2023: In the first nine months of 2023,
sales volume grew by more than 2% year-on-year to 3.8 million tonnes. Revenue for the period
reached $4.3 billion, with adjusted EBITDA reaching $1.6 billion. Net profit for the period was $713
million, impacted by a significant year-on-year decline in average selling prices compared to their
peak levels in 2022, and partially offset by healthy additional volume.
Strong operational performance and global sales & distribution network delivering high
sales volumes
Borouge achieved very high production utilisation rates with PE production at 104% and PP
production at 109% for during the quarter. Complemented by its state-of-the-art manufacturing
facilities in Ruwais, one of the world’s largest integrated polyolefin complexes, Borouge’s direct
customer coverage, strong brand name and strategically located market presence across its
target global sales markets enabled volume optimisation. This contributed to sales volumes of
1,395 kilo tonnes in the third quarter, representing a 16% quarter-on-quarter and 4% year-on-year
increase. These higher volumes partially mitigated the impact of a 14% decline in average
polyolefin selling prices during the period.
Value Enhancement Programme outperforms, achieving a material $420 million positive
impact
Borouge’s Value Enhancement Programme continues to successfully deliver cost efficiencies and
revenue optimisation. Already exceeding its target of $400 million, the programme has delivered
a $420 million positive impact year-to-date in 2023. The company is now pursuing a higher target
of $500 million for the Programme to mitigate the steep price decline in the current challenging
market environment. The programme is one of the industry’s most ambitious revenue
enhancement and cost saving programmes, delivering a considerable positive impact to the
bottom line in a challenging environment and positioning Borouge as a leader among its regional
and international peers.Borouge Classification: Public
Q3 2023 Financial Results
Market Announcement
Shareholder returns supported by planned capacity growth projects and ongoing
operational investments
The company continues to progress in expanding its polyethylene production capacity by 1.4
million tonnes per year with the Borouge 4 project, currently being built by Borouge’s major
shareholders, ADNOC and Borealis. The Borouge 3 plant and associated feedstock operations
will undergo a planned maintenance shutdown in 2024, resulting in an estimated total volume
impact of 500 kilo tonnes. This rigorous approach to maintenance ensures optimal reliability,
contributing to the quality and operational excellence that provides a key comparative advantage
for Borouge.
Focus on new product innovation supporting the sustainability agenda
The company continues to advance its sustainability agenda with a core focus on innovation and
partnerships aimed at promoting the circular economy. In the third quarter, at ADIPEC, Borouge
signed an agreement with Tadweer (Abu Dhabi Waste Management) to explore recycling
opportunities in Abu Dhabi, with a focus on implementing best practices in polymer sorting and
mechanical recycling. Borouge is also advancing its sustainability agenda and efforts to driving
decarbonisation by launching initiatives to leverage its innovation capabilities to empower
electrification through its solutions, including in the fast-growing sectors of wind and solar energy,
electric vehicles and energy storage.
Outlook
The overall polyolefins market remains challenging, with pricing expected to operate within a
narrow band of volatility throughout the fourth quarter of 2023. Borouge remains well-positioned
to deliver product premia versus benchmarks through-the-cycle given the company’s competitive
and cost-advantaged feedstock position, economies of scale through one of the world’s largest
integrated polyolefins complexes, superior Borealis Borstar® proprietary technology and the
company’s leading position in key growing and sustainable market segments.
Borouge’s management expects to deliver further gains from the Value Enhancement Programme
in the fourth quarter of 2023.
Financial highlights
YoY % QoQ % YoY %
USD millions Q3 2023 Q3 2022 Q2 2023 9M 2023 9M 2022
Change Change Change
Sales Volume (kt) (1) 1,395 1,341 4% 1,206 16% 3,758 3,669 2%
Revenue 1,496 1,674 (11)% 1,416 6% 4,294 5,134 (16)%
Adj. EBITDA (2) 592 593 - 518 14% 1,571 2,105 (25)%
Net Profit 282 308 (9)% 231 22% 713 1,161 (39)%
Adj. Operating FCF (3) 573 564 2% 496 15% 1,446 1,992 (27)%
(1) PE, PP and ethylene sales (including Borealis volumes).
(2) Adj. EBITDA defined as EBITDA plus adjustments on foreign exchange g ain or loss and impairment loss on Property, Plant and Equipment.
(3) Adj. Operating FCF defined as Adjusted EBITDA less capital expenditure.Borouge Classification: Public
Q3 2023 Financial Results
Market Announcement
--- ENDS ---
About Borouge Plc
Borouge Plc, listed on the Abu Dhabi Securities Exchange (ADX symbol: BOROUGE / ISIN
AEE01072B225), is a leading petrochemicals company that provides innovative and differentiated
polyolefin solutions for the infrastructure, energy, mobility, healthcare, agriculture and advanced packaging
industries. Borouge employs more than 3,100 people and serves customers in over 86 countries across
Asia, the Middle East and Africa.
Founded in 1998 through a strategic partnership between ADNOC and Borealis, Borouge was formed to
build and operate a polyolefins complex in Al Ruwais Industrial City, United Arab Emirates, which today is
one of the world’s largest integrated polyolefin complexes. ADNOC owns a majority 54% stake and Borealis
holds a 36% stake in Borouge.
To find out more, visit: borouge.com
For further information, please contact:
Rehab Ateeq
VP, Global Communications
Media@borouge.com
Samar Khan
VP, Investor Relations
IR@borouge.com | negative |
Q3 2022
MANAGEMENT’S
DISCUSSION &
ANALYSIS
For the period ended
30 September 2022ABU DHABI NATIONAL ENERGY COMPANY PJSC (TAQA)
MANAGEMENT’S DISCUSSION AND ANALYSIS
1. Health, Safety and Environment
2. Summary of Results
3. Results of Operations by Business Line
4. Capital Structure and Liquidity
5. Capital Expenditure
This document should be read in conjunction with TAQA’s unaudited consolidated financial statements for the period ended 30
September 2022. Within the MD&A we use the terms “the Group”, “we”, and “our” to refer to TAQA.
1. Health, Safety and Environment (HSE)
Period ended 30 September
T&D Generation (1) Oil & Gas Group Total
HSE Overview 2022 2021 2022 2021 2022 2021 2022 2021
Fatalities Number - 1 - - - - - 1
Recorded injury rate (RIR) (incident/1 million hrs) 0.23 0.08 0.00 0.55(2) 2.14 2.26(3) 0.63 0.61
Lost time injury (LTI) Number 3 - - 2 10 5 13 7
Reportable spills Number - - 1 2 19 25 20 27
1) Refers to TAQA operated assets only
2) Q3-2021 Manhours were revised
3) O&G Q3-2021 RIR was updated based on revised manhours calculation
“Safe” is our first value. We put safety above all else and HSE is a fundamental part of TAQA’s business.
A strict set of HSE rules, guidelines, and reporting tools to ensure a high level of professionalism and
adherence to regulations is enforced wherever we operate. All members of our workforce are
empowered with the responsibility and authority to stop unsafe work.
The Group RIR of 0.63 for Q3 2022 is higher than the Group RIR of 0.61 for the same period in 2021,
and whilst the RIR has increased slightly the number of LTIs in 2022 increased from 7 in Q3 2021 to 13
in Q3 2022. We continue to emphasize and implement HSE improvement programs in our operating
companies with focus on improved reporting and rigorous categorization of all incidents.
20 spills were reported in Q3 2022 compared to 27 in Q3 2021, with the total volume released being
80% less than the same period in 2021.
Managing HSE performance requires constant vigilance, targeted interventions, and continuous safety
and environmental improvement programs. Ongoing measures include behavioral safety and
leadership programs, further developing our HSE management system, contractor management
enhancements, the delivery of focused safety audits, increased reporting of unsafe acts, conditions and
near misses, and the sharing of learnings from incidents.
Through improved investigations, learning from incidents and addressing emerging trends and insights,
we strive for continuous improvement in safety within our operations in line with TAQA’s HSE
management system. We continue to focus our efforts on eliminating injuries and fatalities in our
activities and seeking to increase our influence on our partners where TAQA is not the operator, through
shared workshops and HSE reviews.
Page 2 of 8
POWERING A THRIVING FUTURE2. Summary of Results
Three months ended Nine months ended
30-Sep 30-Sep 30-Sep 30-Sep
(AED million, except where indicated) 2022 2021 2022 2021
Commercial Availability – Generation1 % 98.5% 96.7% 97.8% 97.3%
Oil & Gas Production2 mboe/d 121.1 116.3 123.1 121.5
T&D Regulated Asset Value (RAV) - - 75,553 77,3895
Gross Revenues 13,697 11,9806 38,667 34,0416
Adjusted EBITDA3 5,549 4,4706 16,471 14,2666
Net Income4 2,236 1,403 6,519 4,259
1) Represents weighted average for all power producing assets based on plant capacity.
2) Includes working interest production from North America and Europe, and entitlement volumes from Iraq.
3) Adjusted EBITDA is defined as IFRS earnings before finance costs, net foreign exchange gain/loss, interest income, income tax,
depreciation, depletion and amortization and other income.
4) Net income above is share attributable to common shareholders of TAQA.
5) RAV figures as at 31 December 2021
6) Revenues/EBITDA for comparative balances were restated due to classification of Netherlands upstream businesses as held for
sale and a discontinued operation as at Q3 2022.
Financial highlights:
• Group revenues were AED 38.7 billion, 14% higher than the prior-year period, primarily due to
higher commodity prices within the Oil & Gas segment.
• Adjusted EBITDA was AED 16.5 billion, up 15%, benefiting from strong revenue growth and
slight cost improvement.
• Net income (TAQA-share) was AED 6.5 billion, 53% higher than the prior-year period. In
addition to strong operational performance, the bottom line benefitted from a return to
normalised depreciation expense in 2022 within the Oil & Gas segment.
• Capital expenditure was AED 2.5 billion, 28% lower than the prior-year period, with the
Transmission & Distribution segment leading the reduced spending.
• Free cash flow was AED 12.8 billion, 13% higher than the same period last year, supported by
a combination of higher cash generation and lower capex.
• As at 30 September, the Group had AED 24.7 billion in cash and cash equivalents and undrawn
corporate credit facilities.
Operational highlights:
• Transmission network availability for power and water was 98.6%, compared to 98.3% a slight
improvement on the prior-year period.
• Generation global commercial availability was 97.8%, a slight improvement over 97.3 % for the
same period last year.
• Oil & Gas average production volumes were 123.1 thousand barrels of oil equivalent per day
(boepd), largely in line with the same period last year.
Page 3 of 8
POWERING A THRIVING FUTURE3. Results of Operations by Business Line
Period ended 30 September
Corp. &
T&D Generation Oil & Gas Group Total
Group Consolidated Elimination
I ncome Statement
2022 2021 2022 2021 2022 20211 2022 2021 2022 20211
(AED millions)
Total revenues 20,160 19,952 10,569 9,095 7,938 4,994 - - 38,667 34,041
Operating expenses (13,460) (12,875) (4,779) (3,393) (2,956) (2,312) 26 26 (21,169) (18,554)
G&A expenses (811) (770) (182) (215) (141) (145) (291) (296) (1,425) (1,426)
Share of results of
- - 397 212 - - 1 (7) 398 205
associates & joint ventures
Adjusted EBITDA 5,889 6,307 6,005 5,699 4,841 2,537 (264) (277) 16,471 14,266
Depreciation, depletion
(3,090) (3,074) (3,468) (3,536) (715) (1,647) 22 28 (7,251) (8,229)
and amortization
Finance costs (2) (3) (1,327) (1,367) (321) (302) (545) (625) (2,195) (2,297)
Other gains / (losses) 149 149 (191) 21 29 778 83 83 70 1,031
Tax (expense) / credit - - (268) (184) (638) (398) 46 16 (860) (566)
Net profit (loss) 2,946 3,379 751 633 3,196 968 (658) (775) 6,235 4,205
Profit from discontinued
- - - - 343 89 - - 343 89
operations
Profit for the period 2,946 3,379 751 633 3,539 1,057 (658) (775) 6,578 4,294
Non-controlling interest - - 59 35 - - - - 59 35
Net profit (TAQA share) 2,946 3,379 692 598 3,539 1,057 (658) (775) 6,519 4,259
1) 2021 comparatives were restated due to classification of certain upstream business units as held for sale and a discontinued operation as at Q3 2022.
As at
Group Consolidated Corp. &
T&D Generation Oil & Gas Group Total
Balance Sheet Elimination
30-Sep 31-Dec 30-Sep 31-Dec 30-Sep 31-Dec 30-Sep 31-Dec 30-Sep 31-Dec
(AED millions) 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Property, plant &
81,494 83,335 31,314 33,691 5,226 5,468 5 (97) 118,039 122,397
equipment
Operating financial assets - - 9,318 10,322 - - - - 9,318 10,322
Investment in and loans to
797 - 1,630 1,279 - - 405 404 2,832 1,683
associates & joint ventures
Intangible assets 4,755 4,755 12,275 13,186 61 33 - - 17,091 17,974
Deferred tax assets - - 63 63 5,856 5,535 1 - 5,920 5,598
Asset classified as held for
- - - - 200 - - - 200 -
sale
Other assets 5,509 4,667 9,970 9,160 2,634 2,471 8,561 5,925 26,674 22,223
Total Assets 92,555 92,757 64,570 67,701 13,977 13,507 8,972 6,232 180,074 180,197
Liabilities associated with
- - - - 808 - - - 808 -
assets held for sale
Total Liabilities 15,426 14,538 42,580 43,863 17,655 16,981 27,716 31,613 103,377 106,995
Total Equity 77,129 78,219 21,990 23,838 (3,678) (3,474) (18,744) (25,381) 76,697 73,202
Page 4 of 8
POWERING A THRIVING FUTURETransmission & Distribution Business
The Transmission & Distribution (T&D) business contributed net income for the nine month period of
AED 3.0 billion, a decrease of AED 0.4 billion when compared to the comparative period . The reduction
was mainly due to recognition of one-off revenues during 2021.
Nine month period on period revenues increased by AED 0.2 billion to AED 20.1 billion mainly due to
higher pass-through bulk supply tariffs (BST) of AED 0.6 billion, which was partially offset by AED 0.3
billion reduction in revenue due to a one-off recognition of projects in 2021, and AED 0.1 billion lower
transmission use of system charges (TUoS).
Higher BST pass-through cost was also the main driver of the AED 0.6 billion increase in operating
costs to AED 13.4 billion for nine months ending 30 September 2022.
Generation Business
Generation business contributed a net income of AED 0.7 billion, an increase of AED 0.1 billion when
compared to the Q3 year to date comparatives of the prior year.
Generation revenues were AED 1.5 billion higher than last year, totaling over AED 10.6 billion. The
increase is mainly due to higher pass-through coal fuel revenues of AED 1.4 billion in Morocco, which
is also reflected as a fuel cost in operating expenses. Revenues from our domestic fleet decreased by
almost AED 0.5 billion, mostly due the decommissioning of the Taweelah A2 plant which contributed
AED 0.3 billion in 2021, as well as lower technical availability compared to prior period in other key
assets. The decrease in domestic revenues however was mostly offset by increase in revenues of AED
0.5 billion in our North American asset due to higher dispatch and more favorable prices.
Operating expenses within Generation increased by AED 1.4 billion to AED 4.8 billion, mainly driven by
higher fuel pass-through costs of AED 1.4 billion in our Moroccan business mentioned above.
The Group’s share of results of associates and joint ventures was AED 0.4 billion, an improvement of
almost AED 0.2 billion when compared to the prior period. This was mainly driven by the Group’s
investment in Sohar Aluminium and its improved results on the back of higher aluminum prices.
Other gains/(losses) mainly relate to foreign exchange losses of AED 0.2 billion relating to Moroccan
asset due to the weakening of Euro and Moroccan Dirham versus USD.
The increase in tax charge mainly reflected increased profitability in Morocco.
Oil & Gas Business
The Oil & Gas business generated net income of AED 3.5 billion compared to AED 1.1 billion in the
prior period. This improvement of AED 2.4 billion in net income was largely due to the improved
commodity price environment, driving revenues to AED 7.9 billion which was an increase of AED 2.9
billion versus 2021. Net income includes profit from discontinued operations of AED 0.3 billion that
relates to Netherlands upstream oil and gas business following the Group entering into definitive
agreements to sell 100% of its ownership.
The Group’s average realised oil price rose significantly to $89.33/bbl in 2022 compared to $61.67/bbl
in 2021. Similarly, average realised gas prices increased to $8.60/mmbtu, from $3.66/mmbtu in 2021.
Average production as of end of September rose to 123.1 mboe/d, showing improvements versus 2021.
Operating costs increased by AED 0.6 billion mainly driven by higher fuel and emissions trading costs.
Depreciation expense declined by AED 0.9 billion compared to the prior period, reflecting a one-off
asset retirement obligation revision in our European assets in 2021 due to a partner default. This was
partially offset by an AED 0.6 billion related tax relief on the additional abandonment liability, recorded
as other gain / (losses) in 2021.
Tax expense for the nine month period increased by AED 0.2 billion in line with higher taxable profits,
offset partially by deferred tax credits.
Page 5 of 8
POWERING A THRIVING FUTURE4. Capital Structure and Liquidity
As at
Group Consolidated Position 30-Sep 31-Dec
(AED million) 2022 2021
Total assets 180,074 180,197
Total equity 76,697 73,202
Total debt 62,191 64,965
Net debt-to-capital ratio 1 40% 44%
Unused portion of credit facilities 13,582 13,486
Net cash and cash equivalents 11,099 8,422
Total Available Liquidity 24,681 21,908
1) ‘Net debt’ divided by ‘Total equity’ plus ‘Net debt’ where ‘Net debt’ is ‘Total debt’ less
‘Net cash and cash equivalents’
Capital Structure
TAQA’s capital structure is comprised of 40% debt based on the balance sheet values as at 30
September 2022 and includes fair value adjustments.
The Group’s external sources of funding include corporate bonds and when drawn down, the Group’s
revolving credit facility (RCF). These funds have historically been used to fund investment, acquisition
and growth within the group. The Generation subsidiaries are generally funded by project debt, either
in the form of limited or non-recourse bank loans or project bonds.
The Group continues to monitor the total debt position and refinancing options available to ensure the
debt mix and cost of debt is at an optimal level. Please refer to the ‘Maturity Profile’ section below for
updates on recent debt issuances.
Interest rates for the Group’s project debt, bonds and loans are largely fixed, either contractually or
through interest rate hedging arrangements. The main exception is TAQA’s RCF, which attracts floating
market rates and therefore is exposed to term Secured Overnight Financing Rate (SOFR) borrowing
rates. During 2021, TAQA settled the RCF facility in full. As our medium and long-term bonds and loans
mature, we may be required to refinance the debt at market rates or utilise other available liquidity.
Accordingly, TAQA is partially exposed to interest rate risk in both the medium and long term.
At 30 September 2022, after taking into account the effect of interest rate swaps, approximately 98%
the Group’s borrowings are at a fixed rate of interest (December 2021: 95%).
The Group’s overall cost of debt averaged at 4.58% during the nine months ended 30 September 2022.
Page 6 of 8
POWERING A THRIVING FUTURELiquidity
The Group’s total available liquidity at 30 September 2022 was AED 24.7 billion, an increase of AED
2.8 billion on the position at the end of 2021. Total available liquidity was made up of AED 13.6 billion
of available credit facilities and AED 11.1 billion of net cash and cash equivalents.
Available credit facilities mainly comprise the Group’s AED 12.9 billion (US $3.5 billion) multicurrency
revolving credit facility (RCF) with a syndicate of 20 banks. The RCF remains undrawn as at 30
September 2022.
As of 30 September 2022, 11% of the Group’s total debt is classified as current (31 December 2021:
5%), based on the carrying value of borrowings.
Maturity Profile
The Group’s financial liabilities repayment schedule as at 30 September 2022 based on contractual
undiscounted payments is as follows:
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Corporate - Bonds/Other Subsidiaries - Bonds Subsidiaries - Bank Loans
As of 30 September 2022, the Group total debt was AED 62.2 billion (31 December 2021: AED 65.0
billion), a reduction of AED 2.8 billion during the first nine months of the year.
Debt reduction of AED 2.8 billion included the Group’s full repayment of its AED 0.6 billion Islamic loan,
which matured in March 2022, plus an additional AED 1.7 billion of scheduled project debt repayments
and AED 0.2 billion of forex revaluation in our Generation business, and AED 0.3 billion of recurring fair
value amortization adjustment to corporate debt.
In the first quarter of 2022, the group raised its first green finance by successful pricing of green senior
secured bonds for an aggregate principal amount of USD 700.8 million (AED 2.6 billion). The bond
refinanced existing debt facilities of Sweihan PV Power Company.
In the third quarter of 2022, one of our domestic generation assets, Al Mirfa International Power & Water
company (MIPCO), successfully refinanced its project debt of AED 4 billion with a syndicate of leading
banks, extending its maturity to 2042.
Additionally in the third quarter, the Group refinanced its RCF of AED 12.9 billion (USD 3.5 billion), to
extend the facility until 2027, transitioning from LIBOR to term SOFR and benefitting from very
competitive and improved pricing.
Page 7 of 8
POWERING A THRIVING FUTURE5. Capital Expenditure
Period ended 30 September
(AED million) T&D Generation O&G Corporate Group Total
2022 1,655 149 686 8 2,498
2021 2,565 175 708 - 3,448
Capital Expenditure refers to additions to Property, Plant and Equipment, excluding right of use assets.
The Group’s total capital expenditure for the first nine months of 2022 was AED 2.5 billion, a 28%
decrease versus the prior period.
Transmission & Distribution capital expenditure for the period was AED 1.7 billion, a 35% decrease
versus the prior period mainly driven by increased in number of projects being settled in 2021 from prior
periods, due to timing and phasing of project execution throughout the sector.
A small reduction in Generation capital expenditure in 2022 versus the prior year relates to planned
major maintenance of the domestic UAE assets cycles, in line with established maintenance programs.
Oil & Gas capital expenditure was 3% lower than 2021. Higher spending in our North American and
Iraq assets was offset by lower spending across our European assets, as the shift into decommissioning
mode on certain late life assets continues successfully.
Jasim Husain Thabet Stephen Ridlington
Chief Executive Officer & Managing Director Chief Financial Officer
11 November 2022
Page 8 of 8
POWERING A THRIVING FUTURE | neutral |
GULF®
NAV
a ri ILO aril n II at ! I n II
WE GO FURTHER GULF NAVIGATION HOLDING PJSC
Press Release:
Gulf Navigation records 28 million dirhams in Net Profits in H1 2023
and successfully eliminates all accumulated losses
Dubai, UAE, 13 July 2023: Gulf Navigation Holding PJSC (“GULFNAV”) the Dubai Financial
Market listed maritime and shipping company, announced its financial results for the period ended
30 June 2023, reporting a Net Profit of 28 million dirhams, compared to a net loss of 2.5 million
dirhams for the same period in 2022. The Company issued its latest financial reports, which indicate
continued improvement in its operational and financial performance, supported by measures to
enhance growth and control costs.
Major Highlights:
• Operating profits reached 23 million dirhams as of H1 2023, compared to 4.5 million
for the same period last year.
• Gross profits of 11 million dirhams as of 30 June 2023, compared to gross profits of 12
million dirhams for the same period in 2022.
• Operating revenue decreased to 65 million dirhams as of 30 June 2023, compared to 72
million for the same period in 2022 due to selling one of the vessels.
• Retained earnings reached 6 million as of H1 2023, compared to accumulated losses of
679 million dirhams for H1 2022.
• Total assets stood at 759 million dirhams.
• Net profits reached 14 million dirhams in Q2 2023, compared to net losses of 4 million
dirhams in Q2 2022.
GULFNAV was able to write off all accumulated losses in Q2, which amounted to 679 million
dirhams (or the equivalent of 66% of the capital as in the second quarter of 2022). These losses were
rather transformed into retained earnings amounting to 6 million dirhams in the second quarter of this
year by completing the capital reduction process, in addition to taking the necessary measures to
improve the performance of vessels, reduce financing costs, and convert a large part of the Company's
debts into shares in the capital.
Total shareholders’ equity increased by 16% to 487 million dirhams as of 30 June 2023, compared to
419 million dirhams in H1 2022. Operating costs decreased to 54 million dirhams in H1 2023,
compared to 60 million dirhams during the same period in 2022, as a result of selling “Gulf Mishref”
vessel.
www.gulfnay.com T +971 4 4270104, F +971 4 4270103
39th Floor, API Trio Office Tower, Al Barsha 1
PO Box 49651, Dubai, UAECommenting on the results, Ahmad Kilani, Board Member and Managing Director, said: “As the
Company continues to achieve significant revenue growth and enhance efficiency in its operations
and core markets. We renew our confidence that GULFNAV will be able to continuously improve
operational performance and maintain profitability levels. Thanks to the measures taken by the Board
of Directors to improve the financial results, the Company managed to write off all the accumulated
losses for the first time in the history of the Company in more than 10 years.”
It is worth mentioning that GULFNAV had issued its Q1 financial statements without any
qualification or going concern by the external auditor for the first time in several years. The Company
has made great strides in restructuring its debts and obligations, which is a strong indicator of the
solidity of its financial and operational performance and the efficiency of the team and the executive
management.
Kilani added: “The strong results achieved by the Company during the second quarter confirm the
success of our long-term growth strategy, and the firm confidence of our partners and customers in
the measures taken by the Board of Directors and faith in the Company's new business model. The
continuous growth in operating revenues reflects the continued demand for our specialized and high-
quality maritime fleet. Therefore, today we enjoy a strong position and a solid foundation to continue
benefiting from the remarkable prosperity in the maritime shipping sector, thanks to the increased
demand for petrochemical tankers in general and the increase in charter rates.”
“Our outlook remains positive for the remainder of the year, especially as we are in the process of
completing the capital increase process, which in turn will contribute to increasing and modernizing
the Company’s fleet of petrochemical tankers and enhancing the Company’s ability to own and
manage these types of vessels. The Company will also continue to explore opportunities for new
alliances and partnerships to support its long-term growth prospects. We will continue to focus our
efforts on maximizing value for our valued shareholders and all stakeholders involved in our
business.” He concluded.
-Ends-About Gulf Navigation Holding:
Gulf Navigation Holding PJSC (“GNH”) is a fully integrated and synergized organization with a
multifunctional business. It is the only maritime and shipping company listed in the Dubai Financial
Market since February 2007 under the symbol “GULFNAV”. The company is headquartered in
Dubai, with branch offices inside the port of Fujairah, Khorfakkan, Abu Dhabi and an overseas office
in the Kingdom of Saudi Arabia. The company has a fleet of chemical tankers, livestock transport
vessels, operation support vessels, marine services, and ship repair operations. As an ISO 9001:2015
certified company accredited by Bureau Veritas, GNH is committed to adhering to the requirements
of the international management code for the safe operations of vessels, pollution prevention and
environmental control, including compliance with all the applicable international laws, regulations
and requirements. GNH constantly works to upgrade its operations and provide high-quality services
to local and international markets. This opens new opportunities to improve GHN’s services to
existing customers while attracting new customers.
For media inquiries, please contact:
Nader Muqbel
Director of Investor Relations
Tel: +971 56 778 0799
E-mail: investor.relations@gulfnav.com | positive |
Management discussion and analysis
for the period ended 30 June 2022
www.wahacapital.aeAl Waha Capital PJSC (“the Company”) and its subsidiaries (together referred to as “the Group”) reported net profit
attributable to Owners of the Company of AED 87.3 million for the six-month period ended 30 June 2022 compared to
net profit of AED 264.5 million for the corresponding period of 2021.
KEY ACTIVITIES DURING THE PERIOD
Total Public Market assets under management reached AED 4.4 billion (USD 1.2 billion) as at 30 June 2022 in line with
AED 4.4 billion (USD 1.2 billion) as at 31 December 2021. The assets under management attributable to Owners of the
Company were AED 2.9 billion as at 30 June 2022 compared to AED 2.9 billion as at 31 December 2021. The funds’
period to date net returns were: Waha CEEMEA Credit Fund SP of -5.8%, Waha MENA Equity Fund SP of 7.8%, Waha
Islamic Income Fund SP of -0.5% and Waha EM Equity fund SP of -2.0%.
KEY FINANCIAL HIGHLIGHTS
Summary income statement for the
period ended 30 June AED ‘000
H1 2022 H1 2021 Q2 2022 Q2 2021
Revenue from sale of goods and services 55,375 65,719 28,695 33,576
Income / (loss) from equity-accounted
associates and joint ventures, net 4,986 (10,142) 2,303 (4,471)
Gain on disposal of equity-accounted
associates and joint ventures 31,263 50,511 31,263 50,511
Impairment of equity-accounted associates
and joint ventures - (32,014) - (32,014)
Income / (loss) from financial investments,
net 149,853 501,536 (107,815) 277,748
Income from investment property, net 24,572 23,212 12,430 11,542
Other income/(expense), net 2,318 (5,110) 1,827 (6,080)
Total income / (loss) 268,367 593,712 (31,297) 330,812
Cost of sale of goods and services (44,367) (45,528) (22,931) (23,753)
General and administrative expenses -
company (39,181) (82,676) (4,358) (41,217)
General and administrative expenses -
subsidiaries (25,412) (25,050) (13,255) (12,067)
Finance cost, net (54,284) (41,800) (28,547) (21,514)
Total expenses (163,244) (195,054) (69,091) (98,551)
Profit / (loss) for the period from
continued operations 105,123 398,658 (100,388) 232,261
Loss from discontinued operations (6,430) (15,580) (1,008) (11,678)
Non-controlling interests (11,411) (118,597) 42,054 (66,683)
Profit / (loss) attributable to owners of
the Company 87,282 264,481 (59,342) 153,900
Basic and diluted earnings / (loss) per
share (AED) 0.05 0.14 (0.03) 0.08
2Total income / (loss)
Six-month period ended 30 June 2022
Total income of AED 268.4 million for the six-month period ended 30 June 2022, compared to AED 593.7 million for
the corresponding period of 2021, was driven by the following:
• Public Markets income of AED 151.5 million compared to AED 478.0 million in 2021 reflecting challenging
market conditions
• Private Investments income of AED 91.5 million compared to AED 91.6 million in H1 2021 mainly due to
• Revenue from goods and services of AED 55.4 million (H1 2021: AED 65.7 million)
• Income from equity-accounted associates and joint ventures of AED 5.0 million (H1 2021: loss of AED 10.1
million)
• Loss from financial investments of AED 1.6 million against profit of AED 23.8 million in H1 2021
• Gain on disposal of AED 31.3 million (H1 2021: AED 50.5 million); and
• No Impairment adjustment for H1 2022 compared to AED 32.0 million in H1 2021
• Waha Land income of AED 25.4 million compared to AED 24.1 million in H1 2021
Three-month period ended 30 June 2022
Total loss of AED 31.3 million for the three-month period ended 30 June 2022, compared to a profit of AED 330.8
million for the corresponding period of 2021, was driven by the following:
• Public Markets loss of AED 72.2 million compared to AED 268.1 million in Q2 2021
• Private Investments loss of AED 17.1 million compared to profit of AED 50.7 million in Q2 2021 mainly reflecting
• Revenue from goods and services of AED 28.7 million (Q2 2021: AED 33.6 million)
• Loss from financial investments of AED 35.6 million against profit of AED 9.9 million in Q2 2021
• Gain on disposal of AED 31.3 million (Q2 2021: AED 50.5 million); and
• No Impairment adjustment for Q2 2022 compared to AED 32 million in Q2 2021
• Waha Land income of AED 12.8 million compared to AED 12.0 million in Q2 2021
TOTAL EXPENSE ANALYSIS
Six-month period ended 30 June 2022
Total expenses for the six-month period ended 30 June 2022 was AED 163.2 million compared to AED 195.1 million in
2021, mainly comprised of:
• General and administrative expenses - company, amounting to AED 39.2 million compared to AED 82.7 million
for the corresponding period of 2021, a decrease of AED 43.5 million due to lower staff related provisions and
prior year reversals
• General and administrative expenses – subsidiaries, amounting to AED 25.4 million in line with AED 25.1 million
for the corresponding period of 2021
• Finance costs, net - company, amounting to AED 32.9 million, compared to AED 20.1 million in the
corresponding period of 2021, an increase of AED 12.8 million, mainly due to higher utilisation of Revolving
Credit Facility and increase in interest rates
• Finance costs, net - subsidiaries, amounting to AED 21.4 million, compared to AED 21.7 million in the
corresponding period of 2021
Three-month period ended 30 June 2022
Total expenses for the three-month period ended 30 June 2022 was AED 69.1 million, compared to AED 98.6 million
in 2021, mainly comprised of:
• General and administrative expenses - company, amounting to AED 4.4 million compared to AED 41.2 million
for the corresponding period of 2021, a decrease of AED 36.8 million, mainly due to due to lower staff related
provisions and prior year reversals
• General and administrative expenses – subsidiaries, amounting to AED 13.3 million compared to AED 12.1
million for the corresponding period of 2021, an increase of AED 1.2 million
• Finance costs, net - company, amounting to AED 17.8 million, compared to AED 10.3 million in the
corresponding period of 2021, an increase of AED 7.5 million, mainly due to higher utilisation of Revolving
Credit Facility and mainly due to higher interest rates
• Finance costs, net - subsidiaries, amounting to AED 10.7 million, compared to AED 11.2 million in the
corresponding period of 2021, a decrease of AED 0.5 million, mainly due to lower utilisation of repurchase
liabilities for public market funds
3Net profit / (loss) attributable to owners of the Company
Six month period ended 30 June 2022
Net profit attributable to owners of the Company: Net Profit of AED 87.3 million for the six-month period ended 30
June 2022, compared to a net profit of AED 264.5 million for the corresponding period of 2021, was mainly driven by
the following:
• Public Markets profit of AED 93.8 million compared to AED 319.6 million in 2021;
• Private Investments profit of AED 34.0 million compared to AED 32.5 million in 2021;
• Waha Land profit of AED 19.5 million compared to AED 16.8 million in 2021; and
• Loss from discontinued operations of AED 6.4 million compared to AED 15.6 million in corresponding period
of 2021.
Three month period ended 30 June 2022
Net (loss) / profit attributable to owners of the Company: Net loss of AED 59.3 million for the three-month period
ended 30 June 2022, compared to a profit of AED 153.9 million for the corresponding period of 2021, was mainly
driven by the following
• Public markets loss of AED 53.7 million compared to AED 180.2 million profit in 2021;
• Private Investments loss of AED 1.2 million compared to profit of AED 21.6 million in 2021;
• Waha Land Profit of AED 9.4 million compared to AED 8.8 million in 2021; and
• Loss from discontinued operations of AED 1.0 million compared to AED 11.7 million in corresponding period
of 2021.
Net profit / (loss) by segment (AED million)
180 320
Public Markets Asset Management
(54) 94
10 17
Private Investment Private Investment
(2) 28
Waha Land 9 Waha Land 17
9 20
Finance costs (1(1 80 )) Finance costs (20)
(33)
(35)
Other Corp. Costs (69)
6 Other Corp. Costs
(22)
154
Net Profit 265
(59) Net Profit / (loss)
87
Q2 2021 Q2 2022 H1 2021 H1 2022
4Balance sheet highlights
AED ‘000 As at 30-Jun-22 As at 31-Dec-21
Investments in equity accounted associates and joint
169,440 170,242
ventures
Right-of-use assets 33,839 99,649
Investment property 245,400 711,422
Financial investments 6,196,140 6,414,024
Loan investments 36,987 -
Other assets 937,544 772,879
Cash and bank balances 665,968 1,421,350
Assets Held For Sale 668,216 -
Total assets 8,953,534 9,589,566
Borrowings 3,504,394 4,117,198
End of service benefit provision 19,004 26,288
Derivative liabilities 115,566 100,626
Lease liabilities 35,444 119,918
Trade and other liabilities 298,956 434,146
Liabilities Associated with Asset Held For Sale 175,178 -
Total liabilities 4,148,542 4,798,176
Total equity 4,804,992 4,791,390
Total liabilities and equity 8,953,534 9,589,566
Total assets composition (AED million)
The Group’s total assets of AED 8,953.5 million as at 30 June 2022, compared to AED 9,589.6 million as at 31 December
2021, a decrease of 7% and mainly comprised of:
a) Investments in equity accounted associates and joint ventures of AED 169.4 million compared to AED 170.2
million in 2021, a decrease of AED 0.8 million, mainly due to share of profit of AED 5.0 million offset by
dividends received of AED 5.8 million.
b) Financial investments of AED 6,196.1 million compared to AED 6,414.0 million in 2021, a decrease of AED 217.9
million, mainly due to net decrease of AED 559.5 million in public market funds offset by net increase of AED
341.6 million from private investments comprising investment of AED 361.6 million in unquoted funds and
other investments.
c) Cash and bank balances of AED 666.0 million compared to AED 1,421.3 million in 2021, a decrease of AED
755.3 million; mainly includes the following cash flows:
Corporate: Public Market units redemption of AED 172.9 million offset by dividends paid AED 138.8 million;
Public Markets: Net disposal of AED 732.6 million and net contributions from non-controlling interest
holders of AED 52.2 million, offset by decrease in repurchase liabilities of AED 597.1 million; and
Private Investments: Net Investment in unquoted funds and loan investment AED 397.6 million.
5d) Other assets of AED 937.5 million as at 30 June 2022 compared to AED 772.9 million as at 31 December 2021,
an increase of AED 164.6 million mainly due to increase in receivables of public market funds due trom brokers
on settlement of trades offset by reclassification of trade and other receivables as held for sale.
e) Assets held for sale of AED 668.2 million comprise Investment property of AED 466.8 million and healthcare
assets of AED 201.4 million classified as held for sale.
The Group’s total liabilities of AED 4,148.5 million as at 30 June 2022 compared to AED 4,798.2 million as at 31 December
2021, a decrease of AED 649.7 million, comprised of:
a) Borrowings of AED 3,504.4 million compared to AED 4,117.2 million as at 31 December 2021, a decrease of
AED 612.8 million; mainly represents decrease in repurchase liabilities related to public market funds of AED
597.1 million.
b) Trade and other liabilities of AED 299.0 million compared to AED 434.1 million as at 31 December 2021, a
decrease of AED 135.1 million; mainly represents decrease in payables of public market funds due to brokers
on settlement of trades and employee related payments and reclassification of liabilities as held for sale .
6BUSINESS AND PORTFOLIO COMPANIES ANALYSIS
The Group’s business comprises three primary divisions: Public Markets, Private Investments and Waha Land.
Public Markets
The Public Markets division have focused on applying rigorous analysis to emerging markets in order to deliver quality
returns over the market cycle on behalf of the Group and external investors. All the funds within the Public Market’s
management continue to generate strong performances in H1 2022, despite the challenging macro global markets
conditions impacting markets around the region.
Over the last 10+ years, two flagship funds have been established: the Waha CEEMEA Credit Fund and the Waha MENA
Equity Fund. Time, and initial seed capital of AED 368m (US$100m) in each, has been invested to build the team,
infrastructure and track record before looking to raise third party capital.
The Waha Islamic Income Fund SP with seed capital of AED 92 million was launched in Q3 2020 to invest in Sharia
compliant assets across the Sukuk and equity markets.
The Waha EM Equity Fund was launched in Q4 2021 with a seed capital of AED 92 million. The objective of the fund is
to invest in equity and equity related securities in emerging markets.
The key strategic focus of the division is to continue to actively manage client assets, while generating market leading
performance and attracting third party institutional and high net worth investors.
The funds’ period to date returns on invested capital were:
Waha CEEMEA Credit Fund SP of -5.8% on a fund size of AED 1.77bn (US$ 481.6 million);
Waha MENA Equity Fund SP of 7.8% on a fund size of AED 2.43bn (US$ 661.8 million);
Waha Islamic Income Fund SP of -0.5% on a fund size of AED 0.13bn (US$ 36.3 million); and
Waha EM Equity Fund SP of -2.0% on a fund size of AED 0.10bn (US$ 25.7 million).
Private Investments
The Private Investments business activated its new multi-asset investment strategy and commenced the full portfolio
and team rebuild process in the last quarter of 2021. This included the launch of two new investment portfolios – Global
Opportunities and Core.
The Global Opportunities portfolio has a broad and flexible investment mandate enabling Waha Capital to invest across
geographies, industries, capital structures and asset classes, in an opportunistic manner. This diversified portfolio,
which was launched in November 2021, targets investments in the alternatives space with high risk-adjusted returns.
During H1 2022, five new investments were made into this portfolio totalling AED 406 million. Net Carrying value of the
Global opportunities portfolio as at 30 June 2022 was AED 535 million.
The Core portfolio will seek to take controlling or significant minority stakes in businesses in the MENA region with
established track records, strong management teams and robust governance frameworks. Such companies would
typically demonstrate stable capital growth prospects, whilst providing recurrent and reliable cash yields. The Core
portfolio was seeded with the Company’s healthcare platform as its anchor asset. Net Carrying value of the Core
portfolio as at 30 June 2022 was AED 122 million.
The Legacy portfolio within Private Investments is comprised of existing assets that do not fit within the Global
Opportunities or Core portfolio mandates. A review of strategic alternatives was conducted for each asset within this
portfolio to develop and implement a plan that will maximize shareholder value. As part of that review, the Company
has divested its tactical holdings in the Waha U.S. Securities portfolio and equity investment in ADDAX bank. Net
Carrying value of the legacy portfolio as at 30 June 2022 was AED 471 million.
7Waha Land
Waha Land, a wholly owned subsidiary of Waha Capital, is developing “ALMARKAZ”, an integrated industrial
development with Grade “A” industrial/logistics facilities and first class infrastructure. The development is located in Al
Dhafra, approximately 15 minutes from Mussafah, Abu Dhabi, and is well located to access the multi-modal industrial
and logistics infrastructure (land, sea, air, and rail) of the UAE. The development is on a 6 km2 land, granted by the
Government of Abu Dhabi.
The development is envisioned to be completed in four phases with multiple stages in each phase. Phase 1, which
comprises of 25% of the total land area (1.5 km2), will be completed in three Stages. In Stage 1 and Stage 2A, circa
180,000 m2 of multi-use industrial/logistics units were completed along with the associated infrastructure like roads,
utilities and telecom. The existing units are fully leased out, home to more than 85 tenants, both local and international
entities, from diverse industry segments such as Oil & Gas, Manufacturing, Defence, Logistics, IT, Contracting and F&B.
An expansion, “Stage 2B”, is currently under construction, which will add circa 75,000 m2 of premium industrial/logistics
facilities, with an expected close by Q3 2023. This expansion is in line with the Waha Land’s underlying ethos to execute
a consistent, disciplined investment approach with emphasis on institutional quality assets flexible to suit a variety of
uses and support a diverse range of tenants from different industry segments. Waha Land’s growth strategy is focused
on continuing to grow the leasable portfolio, developing new products and services for the UAE’s Industrial/Logistics
market, in line with dynamically evolving regional and global market dynamics.
During the period ended 30 June 2022, Waha Land reported total income of AED 25.4 million (2021: AED 24.1 million).
The carrying value of investment property was AED 712.2 million as at 30 June 2022, including AED 466.8 million
classified as held for sale.
OUTLOOK
Waha Capital remains focused on generating returns for both its shareholders and clients, in a manner that
is both cautious and sustainable. Despite the unprecedented geopolitical and macroeconomic challenges
that are continuing to impact global markets, the Company’s results for the first half have remained
resilient. The active management of our Public Markets funds has enabled our funds to outperform their
respective benchmarks, with the continued growth of third-party investments and the preservation of
capital remaining our priorities for the remainder of the year. While market conditions are expected to be
uncertain and volatile, Waha Capital is well prepared to weather these challenges using its active investment
approach and broad capabilities.
Despite the continued challenges in the operating environment, we remain cautiously optimistic about the
future as we continue to enhance and develop our investment platform. The Public Markets division
remains steadfast in extending its strong track record of investment outperformance, while working to
promote the platform and attract additional capital from new and existing investors. The Private
Investments team continues to deploy assets into their flagship Global Opportunities portfolio, achieving
positive profit growth in the first half of 2022; while continuing to drive value creation for the Core and
legacy portfolios. Waha Land on the other hand continues to represent a best in class industrial real estate
offering, as reflected in their high occupancy rates. Underpinning this outlook is our continued focus on
maintaining strong corporate governance, protecting both shareholder and client assets, growing the asset
base and achieving economies of scale across our balance sheet
__________________________________________________________________________
Ahmed Khalifa Al Mehairi
Chief Executive Officer, Al Waha Capital PJSC
4 Aug 2022
8 | neutral |
DFM
k )J LoJ I 0411i
Dubai Financial Market announces 109% rise in net profit for the first nine
months of 2023 to AED 186.2 Million
• In the first nine months of 2023, the DFM attracted 35,357 new investors, 72% of
which were foreign investors, expanding the current investor base to more than a
million.
• Trading value reached AED 78 billion, a 12% increase over the same period last year
• DFM General Index rose by 25% and market capitalization reached AED 697 billion,
more than doubling since 2020.
Dubai, 30 October 2023 – Dubai Financial Market (DFM) today announced its consolidated
financial results for the period ended 30 September 2023. Net profit increased by 109% to
AED 186.2 million, compared to AED 89 million in the corresponding period in 2022. With a
notable increase in the number of trades, overall trade value, and an influx of new investors,
DFM’s robust performance reinforces Dubai as the pivotal hub in the global financial
landscape.
Strong financial performance
DFM’s total consolidated revenue increased by 48% to AED 351.8 million during the first
nine months of 2023, compared to AED 237.8 million during the corresponding period of
2022. The revenue comprises AED 214.2 million in operating income and AED 137.6
million in investment returns and other income. Meanwhile, total expenses reached AED
165.6 million compared to AED 148.8 million in the same period ending September 2022.
Robust trading activity
The total number of trades increased to 1.43 million trades in the first nine months of 2023,
representing a notable 37% increase in trading activity over the same period last year.
Concurrently, the total trading value rose to AED 78 billion, recording an increase of 13% over
the same period last year. The DFM General Index also rose by 25% during this period, closing
at 4,136.58.
Sustained investor confidence
In the first nine months of 2023, DFM proudly welcomed 35,357 new investors to its platform,
of which 72% were from foreign markets representing over 200 nationalities, bringing the
current investor base to over one million. Additionally, institutional investors accounted for
56% of the trading value, with net purchases of AED 1.54 billion. This influx of new investors
demonstrates DFM's global appeal as a thriving financial ecosystem.
Diverse sectoral representation
DFM's market capitalization witnessed substantial growth, increasing from AED 576 billion in
9M 2022 to AED 697 billion in 9M 2023. DFM’s sector distribution by market capitalization:Financials at 41%, Utilities at 23%, Real Estate at 17%, Industrials at 14%, Communication
Services at 3%, with others such as Consumer Staples making up the rest. This presents
opportunities to bring underrepresented sectors to the market and reflects Dubai’s GDP mix.
Commenting on DFM’s resilient performance, H.E Helal Saeed Al Marri, Chairman of DFM,
said: "We are pleased to report a significant increase in revenue and net income the first nine
months of the year, underscoring our unwavering commitment to diversification and our
forward thinking initiatives to position DFM as the marketplace of choice for both investors
and issuers."
Hamed Ali, CEO of DFM and Nasdaq Dubai, said, “The robust performance witnessed in the
first nine months of the year reflects the resilience and strength of Dubai’s capital market.
With a significant increase in our trade numbers, expanding sector diversity, and a surge in
new investors, DFM is well positioned to continue driving growth and innovation in the global
financial landscape. Our commitment to expanding our product verticals with the introduction
of new asset classes, onboarding of digital brokers for seamless trading experience, and the
launch of innovative programs such as the IPO Accelerator underscores our dedication to
strengthening the overall financial ecosystem.’’
He added, “The increase in our foreign investor base can be attributed to the success of our
international roadshows. DFM's recent roadshow in Singapore last month witnessed
impressive participation, fostering global partnerships, and enhancing our international
presence. We are now looking to further expand DFM’s reach as we prepare for the upcoming
roadshow in New York next month."
Since its launch this year, DFM’s IPO Accelerator Programme, supported by 20 esteemed
regional and global advisors, has provided more than 40 participating private companies
including family businesses significant opportunities in their growth journey. Furthermore, in
line with DFM’s ongoing digital transformation efforts in 2023 till date, a number of brokers
were successfully onboarded, marking another milestone in DFM’s mission to keep innovation
at the forefront of their products and services.
-Ends-
About Dubai Financial Market:
Dubai Financial Market (DFM) was established as a public institution with its own independent corporate body. DFM operates as a
secondary market for the trading of securities issued by public shareholding companies, bonds issued by the Federal Government or any of
the local Governments and public institutions in the country, units of investment funds and any other financial instruments, local or
foreign, which are accepted by the market. The DFM commenced operations on March 26, 2000 and became the first Islamic Shari’a-
compliant exchange globally since 2007. Following its initial public offering in November 2006, when DFM offered 1.6 billion shares,
representing 20 per cent of its paid-up capital of AED 8 billion, DFM became a public joint stock company, and its shares were listed on 7
March 2007 with the trading symbol (DFM). Following the IPO, the Government of Dubai retained the remaining 80 per cent of DFM
Company through Borse Dubai Limited. www.dfm.ae
For further information, please contact:
Noora Al Soori
Communications and Public Relations
Dubai Financial Market
Tel: +971 4 305 5437
E: nalsoori@dfm.aeShruti Choudhury Shraddha Sundar
Account Director Account Manager
Edelman Smithfield Edelman Smithfield
M: +971 54 586 7874 M: +971 50 735 0608
E: dfmedelmansmithfield@edelman.com E: dfmedelmansmithfield@edelman.com | positive |
Alpha Dhabi Holding
H r» j I n || , n i K I ri li Alpha Dhabi Holding PJSC
Brief of the major elements of the Interim Condensed Consolidated Financial Statements
Brief of the Balance Sheet: 000" AED
Particulars For the Period Ended on 30/06/2023 For the Period Ended on 30/06/2022
Total Non-current Assets 62,139,509 56,145,804
Total Current Assets 65,743,018 74,883,420
Total Current Liabilities 30,891,955 37,528,458
Total Non-current liabilities 25,112,621 23,461,806
Total Share-holders Equity 71,877,951 70,038,960
Brief of the Income Statement
"000" AED
For the Six Months Period For the Three Months Period
Particulars
Ended on Ended on
30/06/2023 30/06/2022 30/06/2023 30/06/2022
Total Revenue 22,140,899 17,128,796 9,365,664 8,961,760
Net Operating Profit 2,658,604 3,294,080 1,886,771 986,586
Net Profit for the period 10,336,928 7,897,806 3,025,195 5,058,698
Earning Per share AED 0.88 0.63 0.23 0.43
Hamad Salem Alameri
Managing Director - Alpha Dhabi Holding PJSCALPHA DHABI HOLDING
H12023
FINANCIAL RESULTS
Period ended 30 June 2023H1 2023 Financial Results
Alpha Dhabi Holding
Alpha Dhabi's H1 Net Profit Soars to AED 10.3 billion
Driven by Strategic Expansion and Investments
• Six-month financial performance showcases robust revenue at AED 22.1 billion and
net profit at AED 10.3 billion, signifying growth of 29% and 30% y-o-y respectively.
• Successful investments propel growth across diversified sectors, consolidating Alpha
Dhabi’s position as a leading regional investment holding company.
FINANCIAL PERFORMANCE AND METRICS
AEDbn H1 2023 H1 2022 YoY% Change
Revenue 22.1 17.2 29%
Net Profit 10.3 7.9 30%
EPS 0.88 0.63 40%
AED
10.3
billion AED
22.1
billion
Net Profit Revenue
AED
127.9
billion
AED
17.6
billion
Total Assets Total Cash Position
Note: YTD as at the end of H1 2023
2H1 2023 Financial Results
Alpha Dhabi Holding
Eng. Hamad Al Ameri, CEO of Alpha Dhabi Holding, said:
“Alpha Dhabi's dynamic performance in the first half of the year
showcases our strength and the resilience of our diversified
portfolio. With a noteworthy revenue of AED 22.1 billion and net
profit soaring to AED 10.3 billion, we have experienced significant
growth and are steering clear of the global market uncertainties.”
“As we navigate the rest of the year, we remain steadfast on our
commitment to enhance our core investment activities through
strategic partnerships and acquisitions. The joint venture with
Mubadala is a testament to our ambition, aiming to deploy up to
AED 9 billion into global credit opportunities. This joint venture not
only reinforces our investment diversification strategy but also
paves the way for Alpha Dhabi to enter into the private credit
market.”
“We are proud of the growth and expansion we've achieved thus
far and remain committed to further strategic developments. Our
strong cash position of AED 17.6 billion allows us to confidently
invest in growth opportunities across a variety of sectors and
geographies and make astute investment decisions that add value
to our portfolio and benefit our shareholders in the short and long
term.”
Abu Dhabi, UAE; 01 August 2023: Alpha Dhabi Holding PJSC (“Alpha Dhabi” or “the Group”), one of the
fastest-growing investment holding companies in the MENA region, listed on the Abu Dhabi Securities
Exchange (ADX: AlphaDhabi), has announced its financial results for the six-month period ending 30 June
2023.
Alpha Dhabi posted remarkable H1 2023 financial results, reporting a Group net profit of AED 10.3 billion,
marking a significant increase of 30% year-on-year. The robust results reflect the Group's strategic
implementation across key verticals and its unwavering commitment to generating enhanced shareholder
value. Alpha Dhabi’s revenue also saw substantial growth, reaching AED 22.1 billion, a remarkable 29%
increase year-on-year from the same period last year.
The first half of the year has been characterized by increased revenue across all business segments,
alongside the positive impact of strategic acquisitions and investments made since 2022, primarily due to
the consolidation of Aldar Properties PJSC starting Q2 2022.
Alpha Dhabi has also broadened its investment horizon, forming a joint venture with Mubadala Investment
Company to co-invest in credit opportunities. Both Alpha Dhabi and Mubadala plan to collectively deploy
up to AED 9 billion over the next five years, utilizing Mubadala’s strategic partnership with Apollo (NYSE:
APO), one of the world’s largest alternative asset managers, to access high-quality private credit
investment opportunities. Additionally, the Group made strategic acquisitions in companies Including
3H1 2023 Financial Results
Alpha Dhabi Holding
ADMO lifestyle Limited, and National Corporation for Tourism and Hotels, demonstrating Alpha Dhabi's
commitment to expanding and diversifying its investment portfolio.
The Group's balance sheet remains resilient with AED 127.9 billion in total assets and a robust cash position
of AED 17.6 billion. The slight decrease in total assets and cash balance is mainly due to the derecognition
of Pure Health Holding and the utilization of excess cash by the Group.
Alpha Dhabi’s diverse portfolio has been a significant driver of its revenue growth, with all segments
delivering notable performance and contributing to the increase in profit. The company’s portfolios in real
estate, industrial, construction, services and other sectors, also contributed significantly, representing 23%,
31%, 19%, and 15% of the total revenue, respectively.
Guided by its robust operating model, financial strength, and agile investment approach, Alpha Dhabi
continues to be well-positioned to drive further growth and capitalize on investment opportunities. The
Group’s focus on strategic acquisitions, geographic diversification, and rigorous corporate governance
practices across the board ensures that the company continues to deliver strong and sustainable returns
for its shareholders.
ABOUT ALPHA DHABI HOLDING
Alpha Dhabi Holding (ADH), the UAE listed conglomerate, was established in 2013 and is one of the fastest
growing Abu Dhabi based investment holding companies, with more than 150 businesses spread across
healthcare, renewable energy, petrochemical and other industries as well as real estate, construction and
hospitality. With over 85,000 employees, ADH is a strategic contributor to the UAE economy and is committed
to drive continuous growth for its stakeholders through investments in emerging businesses, supporting
innovation and diversity.
MEDIA CONTACTS
Alpha Dhabi Holding Weber Shandwick
Archana Koka Mary Khamasmieh
Investor Relations Officer Head of Public Affairs
IR@alphadhabi.com M: +971 50 2731 753
E: mkhamasmieh@webershandwick.com
4Investor Relations
Alpha Dhabi Holding PJSC (“ADH”) reports a Group net
Alpha Dhabi Holding PJSC
profit of AED 10.3 Bn for the first half of 2023, showing
Ticker: ALPHADHABI
continued momentum in the execution of its strategy
Market Cap: AED 200 Bn
across key verticals and commitment to generate
(As on 31.07.2023)
higher shareholder value.
Investor Metrics:
30.0 H1 Revenue: AED Bn
Revenue 22.1
20.0 17.2
AED 22.1 Bn
29% Increase 10.0
(YOY)
-
YTD 22 YTD23
15.0 15.0
H1 Net Profit AED Bn H1 Owner’s Net Profit AED Bn
10.3
Net Profit 10.0 7.9 10.0 8.8
6.3
AED 10.3 Bn
5.0 5.0
30% Increase
(YOY) - -
YTD 22 YTD23 YTD 22 YTD23
Net Margin Earnings Per Share EBITDA EBITDA Margin
47% AED 0.88 AED 11.8 Bn 53%
+100bps YoY +40% YoY +36% YoY +200bps YoY
Total Assets Total Equity Total Liabilities Cash Balance
AED 127.9 Bn AED 71.9 Bn AED 56.0 Bn AED 17.6 Bn
2% Decrease 3% Increase 8% Decrease 31% Decrease
(YTD) (YTD) (YTD) (YTD)
Net Debt to
Total Borrowings Return on Equity
EBITDA
AED 20.4 Bn 25%
0.2x
• Return on Equity is based on LTM profits attributable to the owners
• Net Debt to EBITDA is based on LTM EBITDAInvestor Relations
Company Overview
Ranked
13th
in Middle East
85,000+ 150+
by Forbes ME
Employees Businesses
(by market
cap)
A leading Investment Holding company, with six verticals and 150+ businesses
acrossMiddleEast,Europe,AsiaandNorthAmerica,eachofwhichiscommitted
tobetransformedintoplatformsofpotential,progress,andprosperity.
Strategic Investments Financial Investments
Industrial
Investments inwhich the group hascontrol Investments in which the group does not
or significant influence and is able to haveanycontrolorsignificantinfluence.
participate and support in the growth
strategyoftherespectivebusinesses. Construction
Listed Listed
Key listed strategic investments as at Real Estate The Group was a cornerstone investor in
30June2023are theIPOsofBorougeandDEWA
Healthcare
Non-Listed Non-Listed
Energy
The group has a wide portfolio of The group has a wide portfolio of
strategic investments in privately held financialinvestmentsacrossgeographies
companiessuchasPureHealth,Mawarid such as MICAD Credit JV in partnership
Holding Investment LLC, Trojan Services with Mubadala and Alpha Wave
ConstructionGroup. Ventures.
Built on strong key values focused on maximizing share holders returns
Strengthening Portfolio Corporate Governance Effective Leadership Synergies
Significant capital The group maintains a Strong performance The group continuously
deployment, successful steadfast commitment to delivered by highly engaged seekstoidentifyanddeliver
expansion of our platform, corporate governance. colleagues and business synergies across its
and enhancing our heads of the company and portfolio.
geographic footprint. its subsidiaries.Investor Relations
Management Discussion & Analysis
ADH is pleased to present its report on the performance of the Group for the period ended 30 June 2023.
This report should be read in conjunction with the interim condensed consolidated financial statements for
thesameperiod.
Profit & loss analysis for the period ending June 2023
Income Statement Summary (AED'Bn) YTD H1 23 YTD H1 22 YOY % Q2 23 Q2 22
Revenue 22.1 17.2 29% 9.4 9.0
Gross profit 4.6 5.0 -7% 2.0 2.3
EBITDA 11.8 8.7 36% 3.7 5.6
Net Profit 10.3 7.9 30% 3.0 5.1
EBITDA Margin 53% 51% +2% 40% 62%
Net Margin 47% 46% +1% 32% 57%
Revenue: The Group generatedrevenue of AED 22.1 Bnduringtheperiodended 30 June 2023, equivalent
to29%YOYgrowth,drivenbythefollowing:
• Increased revenue across all business segments and the impact of strategic acquisitions and
investmentsmadesince2022mainlyduetoconsolidationofAldarstartingQ22022.
Gross Profit: The Group reported a gross profit of AED 4.6 Bn with a gross margin of 21% reflecting the
impactofbothorganicgrowthandacquisitions.
Expense Analysis: General and administrative expenses for the period were AED 2.2 Bn versus AED 1.5 Bn
duringthesameperiodin2022,withtheincreasearisingfromthecontinuedgrowthoftheGroup.
OtherIncome:
• During the period, the group derecognized its ownership interest in Pure Health Holding resulting in a
fairvaluegainofAED7.4Bn.
Net Profit: First half of 2023 reported a net profit of AED 10.3 Bn against AED 7.9 Bn during the
comparableperiodin2022,withayear-on-yeargrowthof30%.
Earnings per share: Earnings per share for the period was AED 0.88 per share, as compared to AED 0.63
duringthesameperiodlastyear,anincreaseof40%.Investor Relations
Balance Sheet Analysis for first half of 2023
Total Assets (AED Bn) Total Liabilities (AED Bn) Total Equity (AED Bn)
131.0 61.0
127.9 56.0 70.0 68.7 71.9
52.0
120.7
FY22 Q123 H123 FY22 Q123 H123 FY22 Q123 H123
AED Bn FY 22 Q1 23 H1 23 AED Bn FY 22 Q1 23 H1 23 AED Bn FY 22 Q1 23 H1 23
Current 74.9 61.5 65.7 Current 37.5 28.4 30.9 Owners 31.9 38.1 40.1
Non-current 56.1 59.2 62.2 Non-current 23.5 23.6 25.1 NCI & Hybrid 38.1 30.6 31.8
Total 131.0 120.7 127.9 Total 61.0 52.0 56.0 Total 70.0 68.7 71.9
Return on Equity Net Debt to EBITDA Total Debt to Equity
25% 0.2x 0.3x
Borrowings Breakdown
Borrowings
AED 20.94Bn 27%
Net Debt
External Borrowings
AED 2.8 Bn
73%
Cash
Non Convertible
AED 17.6 Bn
Suksuks
Total assets were AED 127.9 Bn compared to total assets of AED 131.0 Bn for year ended 31 December
2022. The change is in-line with the Group’s derecognition of subsidiary (Pure Health Holding) to
investmentinjointventure.
Total Liabilities were AED 56.0 Bn compared to total liabilities of AED 61.0 Bn for FY 22, with a YTD
decreaseof8%YTD.
EquityreportedfortheperiodwasAED71.9Bnasat30June2023comprisedofowner'sequityat40.1Bn,
hybridequityinstrumentsatAED1.8BnandnoncontrollinginterestsatAED29.9Bn.
CashBalancereportedason30June2023wasAED17.6Bn.
Net Debt increased to AED 2.8 Bn from a net cash position of AED 4.1 Bn at 31 December 2022 due to
decreaseincashbalanceby31%YTD.
• Return on Equity is based on LTM profits attributable to the owners
• Net Debt to EBITDA is based on LTM EBITDAInvestor Relations
Alpha Dhabi Holding
n ri il n II .J i Hi I n li
Segment Performance
The Group is organized into 5 segments segregated based on the operating activities.
Segmental Revenue Bridge (AED Bn)
■ Increase ■ Decrease ■ Total
• All the segments during the period delivered a notable performance and contributed to the increase in
profit.
• The decrease in health care segment is due to difference in accounting treatment for Pure Health from
subsidiary to an investment in associate. Overall, Healthcare contributed to 12% of total revenue.
• All the segments were profitable for the reporting period.
• Summary of segmental performance is shown in the table below:
Services &
Segments (AED Bn) Real Estate Industrial Construction Others * Healthcare Total
Revenue 5.0 6.8 4.1 3.5 2.7 22.1
Proportion to total 23% 31% 19% 15% 12% 100%
Net Profit 1.3 0.9 0.2 7.6 0.3 10.3
Proportion to total 13% 9% 2% 73% 3% 100%
Total Assets 70.6 18.0 8.5 17.3 13.5 127.9
Proportion to total 55% 14% 7% 13% 11% 100%
Services includes other small segments such as Energy and eliminationsInvestor Relations
Key Investments during the period and Subsequent Events
Key Investments
During the period, the group and Mubadala Investment Company (“Mubadala”)
formed a joint venture (20:80) to co-invest in credit opportunities. Alpha Dhabi and
Mubadala aim to collectively deploy up to ~AED 9 billion (approximately US $2.5
MICAD Credit JV billion) over the next five years, leveraging Mubadala’s long-term and strategic
partnership with Apollo (NYSE: APO), one of the world’s largest alternative asset
managers, to access high-quality private credit investment opportunities. As at 30th
June2023,thegrouphadinvestedAED99.3Mn.
Duringtheperiod,theGroupacquired36.39%NCTHforapurchaseconsiderationof
National
Corporation for AED 730 million.NCTH shares are listed on ADX and it owns, manages and operates
Tourism and
a number of hotels in Abu Dhabi and this deal makes Alpha Dhabi the single largest
Hotels (“NCTH”)
shareholderofNCTH.
Subsequent Events
The Group entered into a shareholders’ and contribution agreement to consolidate
the facilities and property management platform of the Aldar and Eltizam Asset
Aldar and
EltizamAsset Management LLC, a property and facilities management services company, owned
Management LLC
by IHC Real Estate Holding LLC and Abu Dhabi National Exhibitions Company PJSC
intoAldarEstatesHoldingLimited.Investor Relations
Alpha Dhabi Holding
d ri |l n II LdJi
Future Plans
Management confirms its commitment to support and enhance the core investment activities of the
company to drive continuous growth via:
• The addition of exciting new operating assets through acquisitions and geographic diversification
• Implementing robust and exemplary corporate governance across the ADH portfolio of businesses to
ensure strong growth is supported by an effective framework of controls.
Managing Director
About Alpha Dhabi Holding
Alpha Dhabi Holding (ADH), the UAE listed conglomerate, was established in 2013 and is one of the fastest
growing Abu Dhabi based investment holding companies, with more than 150 businesses spread across
healthcare, renewable energy, petrochemical and other industries as well as real estate, construction and
hospitality. With over 85,000+ employees, ADH is a strategic contributor to the UAE economy and is
committed to drive continuous growth for its stakeholders through investments in emerging businesses,
supporting innovation and diversity | positive |
For immediate release
Emirates NBD’s Q1 2023 profit more than doubles to a record AED 6 billion
Quarterly income surpasses AED 10 billion for the first time
Dubai, 27 April 2023
Emirates NBD’s profit more than doubles to a record AED 6 billion in the first quarter of 2023, demonstrating
the success of the Group’s diversified business model and a healthy regional economy. This is also a
record quarter for income which exceeds AED 10 billion for the first time ever. The exceptional increase in
profit reflects higher margins, growing non-funded income and a lower cost of risk on significant recoveries.
Healthy sector liquidity helped deposits grow by AED 35 billion or 7% including a further AED 19 billion
increase in Current and Savings Accounts, supporting a 3% increase in lending and impressive asset
growth. Credit quality improved due to substantial recoveries reflecting the region’s growing economy with
impairment charge down 66%. Every business unit delivered higher income and improved profitability. We
have launched new digital products and services and recharged our strategy within our international
footprint to deliver future growth.
Key Highlights – First Quarter 2023
119% profit growth on higher margins, improved deposit & loan mix and substantial recoveries
• Net profit of AED 6.0 billion up by an outstanding 119% y-o-y and 54% q-o-q
• Total income up 64% to AED 10.5 billion on our excellent deposit mix with higher interest rates
feeding through to margins and strong growth across all business segments and products
• Net interest margin rose significantly by 145 basis points y-o-y to 4.05%
• Impairment allowances substantially down 66% y-o-y on successful recoveries as coverage ratio
increases to 152%
• Credit Quality improved with NPL ratio 0.4% lower q-o-q at 5.6% enabling improved credit quality
guidance
• Customer loans up an impressive 3% in Q1-23 with highest ever retail disbursements across
conventional and Islamic retail franchise coupled with strong new corporate lending
• Deposit mix is a key strength. Deposits grew 7% or AED 35 billion in Q1-23 including a beneficial
AED 19 billion increase in Current and Savings Accounts, demonstrating our effective deposit
gathering strategy and low cost of funds
• Earnings per share up significantly by 117% to 93 fils, underlying up 159%
Page 1 of 7 Emirates NBD’s strength empowers its customers to benefit from a growing economy
• Total assets up 5% at AED 782 billion
• Capital and Liquidity 187% Liquidity Coverage Ratio and 15.8% Common Equity Tier-1 ratio
reflect the Group’s solid balance sheet, used to empower customers and create opportunities to
prosper
• Expenses well controlled, as the Group recharges international strategy with effective progress in
broadening international branch network and accelerates investment in Digital and Data to drive
future growth
• Growing regional presence helping drive significant income growth across our international
footprint
• Egypt appointed a new CEO and CFO to recharge Egyptian growth strategy
Emirates NBD market leadership continues to advance
• Growing market share with strongest ever quarter for retail lending with over AED 8 billion of
retail loan disbursements in Q1-23 and over 144,000 new credit cards issued
• Local currency issuance. The Group became the first issuer of Dirham bonds and sukuks,
following the Ministry of Finance’s development of local yield curve
• Global Custody Services was launched by Emirates NBD Capital on DFM and ADX, providing
regional and overseas clients with secure and efficient safekeeping of their assets across multiple
geographies
• Instant trading on ADX. Emirates NBD Securities provides digital onboarding and instant trading
access to ADX’s listed companies
• ‘ENBD X’ enhanced mobile banking app rolling out, delivering a new standard in customer service
• Priority Banking revamped value proposition for affluent clients
• Emirates Islamic’s ratings affirmed, and Viability Rating upgraded by Fitch
• ESG 75% of cards issued are now eco-friendly bio-cards, reducing plastic consumption by over
4,200 kilograms
• Earthquake contribution of 350 million Turkish Lira to support Earthquake recovery
Page 2 of 7Hesham Abdulla Al Qassim, Vice Chairman and Managing Director said:
“Emirates NBD’s profits more than doubles to a record AED 6 billion in the first
quarter of 2023, reflecting the success of the Group’s diversified business model
and a healthy regional economy.
As a leading bank in the region, we are fully aligned with Dubai’s commitment to
continue developing and stimulating entrepreneurship, attracting more foreign investment and
consolidating Dubai’s position as a land of opportunity and innovation.
Emirates NBD and Emirates Islamic are proud to be the first issuers of dirham bonds and sukuks, following
the development of a local yield curve, facilitating capital market access in local currency for UAE
corporations.
In response to February’s tragic earthquake in Turkey, Emirates NBD Group immediately donated 350
million Turkish Lira to the relief effort and is also providing deferral support to affected customers.”
Shayne Nelson, Group Chief Executive Officer said:
“Emirates NBD delivers record quarterly income for the first quarter of 2023 as total
income grew 64% to AED 10.5 billion on increased transaction volumes and improved
margins from an efficient funding base and higher interest rates.
We also delivered a record AED 6 billion quarterly profit on the back of higher
income and a substantially lower cost of risk aided by significant recoveries, the highest ever quarterly
profit delivered by a UAE bank.
Q1-23 is the strongest ever quarter for retail lending with over 144,000 new credit cards issued and over
AED 8 billion of retail loan disbursements.
We upgraded our mobile banking app, revamped the value proposition for affluent clients and enabled
instant trading on the Abu Dhabi Stock Exchange to deliver a new standard in customer service.
We have recharged our strategy within our international footprint to deliver future growth.”
Patrick Sullivan, Group Chief Financial Officer said:
“Emirates NBD’s diverse business model delivers record income, profit and retail
disbursements during the quarter.
Higher income enables us to accelerate our international expansion and
investment in digital and data, which will deliver alternative revenue streams and
offset against the impact from expected future interest rate cuts.
Strong recoveries and the low cost of risk in the first quarter enables us to improve our credit quality
guidance.
Liquidity in the UAE banking sector remains healthy and we grew deposits by AED 35 billion in the first
quarter of 2023, including a AED 19 billion increase in Current and Savings Account balances.
Dubai’s economy continues to perform strongly and the Group’s solid balance sheet is supporting its
customers and help them grow both locally and internationally.”
Page 3 of 7Financial Review
Income Statement 3 months ended 3 months ended
%∆ YoY
All figures are in AED billion 31-Mar-23 31-Mar-22
Net interest income 7.2 4.3 69%
Non-funded income 3.3 2.1 54%
Total income 10.5 6.4 64%
Operating expenses (2.6) (2.0) 34%
Operating profit before impairment 7.8 4.4 77%
Impairment allowances (0.5) (1.4) (66)%
Profit before tax & others 7.4 3.0 145%
Hyperinflation adjustment (0.8) - -
Tax (0.5) (0.3) 91%
Profit 6.0 2.7 119%
Key Metrics 31-Mar-23 31-Mar-22 %∆ YoY
Cost to income ratio 25.3% 30.8% (5.5)%
Net interest margin 4.05 % 2.60% 145 bps
Cost of Risk (bps) 41 116 (75) bps
EPS (AED) 0.93 0.41 52 fils
Return on Tangible Equity 30% 16% 14%
Balance Sheet As at As at
%∆ QoQ
All figures are in AED billion 31-Mar-23 31-Dec-22
Total Assets 782 742 5%
Gross Loans 470 456 3%
Deposits 538 503 7%
Key Metrics 31-Mar-23 31-Dec-22 %∆ QoQ
NPL Ratio 5.6% 6.0% (40) bps
Impaired Loan Coverage Ratio 152% 145% 7%
Liquidity Coverage Ratio 187% 182% 5%
Capital Adequacy Ratio 18.7% 18.3% 40 bps
Tier 1 Ratio 17.6% 17.2% 40 bps
Common Equity Tier 1 Ratio 15.8% 15.4% 40 bps
Rounding differences may appear throughout the document
Page 4 of 7Operating Performance
Total income for Q1-23 is up 64% y-o-y and up 7% q-o-q to AED 10.5 billion. Net interest income is up 69%
y-o-y on an improved loan and deposit mix with higher rates feeding through to margins. Non-funded
income is up 54% y-o-y from increased local and international card transactions, coupled with growth in
FX & Derivative income.
Q12023
Expenses remain well controlled with Q1-23 cost to income
ratio within guidance at 25.3% reflecting stronger income
0.5
enabling continued acceleration of investment for growth
1.9
2.6
Impairment allowances in Q1-23 are substantially lower, down Net profit
3.9
Q42022 Costs
66% y-o-y, reflecting strong recoveries and the healthy
Provisions
operating environment and enabling improved credit quality
6.0
2.9
guidance.
Quarterly profit rises to AED 6 billion on the back of higher
income and a substantially lower cost of risk aided by significant recoveries, the highest ever quarterly
profit delivered by a UAE bank.
Balance Sheet Trends
Lending increased during Q1-23 by AED 13 billion with the
Dec-22 Mar-23
conventional and Islamic retail franchise having its strongest ever
538
quarter, disbursing over 8 billion dirhams of loans.
503
Deposits grew by AED 35 billion in the first quarter of 2023,
470
including a AED 19 billion increase in Current and Savings Account
456
balances helping maintain a stable, efficient funding base.
Liquidity remains strong with the Liquidity Coverage Ratio at 187% Loans Deposits
and the Advances to Deposits Ratio at 80%.
During the quarter, the Non-Performing Loan ratio improved to 5.6% on significant writeback and recoveries
whilst the Coverage ratio strengthened to 152%, demonstrating the Group’s continued successful approach
to loan management and its prudent approach towards credit risk
Dec-22 Mar-23
management.
18.7%
18.3%
As at 31 March 2023, the Group’s Common Equity Tier 1 ratio is
15.8%, Tier 1 ratio is 17.6% and Capital Adequacy ratio is 18.7% 15.8%
15.4%
CAR CET-1
Page 5 of 7Business Performance
Retail Banking and Wealth Management had an excellent first quarter with its highest ever revenue,
strongest ever disbursement of loans and credit cards, and a stable, diverse deposit base.
- Robust business momentum continues with loan origination up 29% y-o-y and Credit Card
acquisitions up 84% y-o-y as 144,000 new credit cards issued in Q1-23
- Lending increased by AED 5 billion and Deposits grew by AED 13 billion in first three months of
2023
- Highest ever Cards spends of over AED 13 billion in March-23
- Income up 39% y-o-y with 30% contribution from non-funded income
- ‘ENBD X’ enhanced mobile banking app rolling out, delivering a new standard in customer service
- Emirates Islamic Retail strengthened its digital offering, launching new mobile app and extending
tablet banking for Credit Cards
Corporate and Institutional Banking capitalised its strategic partnership with major Government
entities and Corporates by enhancing digitized service platforms
- Global Custody Services launched by Emirates NBD Capital on DFM and ADX, providing regional
and overseas clients with secure and efficient safekeeping of assets across multiple geographies
- Profitability jumped 128% on higher fee income due to increased customer hedging, increased
Trade Finance and Investment banking income, improved net interest income due to rate rises and
strong recoveries
- CASA balances grew enabling Group to maintain low cost of funds
- Emirates NBD Securities provides digital onboarding and instant trading access to ADX’s listed
companies
Global Markets and Treasury delivered an outstanding performance with quarterly income and profit
exceeding AED 1 billion for the first time
- Net interest income grew significantly from Balance Sheet positioning coupled with a significant
increase in banking book investment income
- Non funded income grew by 76% as the Trading desk navigated volatile market conditions, with
particularly strong performances from Rates and FX trading desks
- Sales Revenue grew by a healthy 60% with Structured Product revenue more than doubling and
income from Foreign Exchange sales growing by 48% y-o-y
- Group Funding issued the UAE’s first Dirham denominated Sukuk and Conventional bonds from a
bank, building on the UAE Ministry of Finance’s development of the local yield curve
DenizBank profit up 37% to AED 861 million helped by strong recoveries
Page 6 of 7Outlook
In April the International Monetary Fund trimmed its global GDP growth forecast to 2.8% for 2023 but expect
most countries within Emirates NBD’s footprint, including the UAE, KSA, Turkey, Egypt and India to match
or exceed this level. Emirates NBD Research expects UAE GDP to grow by 3.9% this year, well ahead of
the IMF’s global growth forecast and this optimism is supported by UAE’s PMI registering a five-month high
of 55.9 in March.
Recent events in the US and European banking sectors did not deter major central banks from pushing
ahead with rate hikes in March, as inflation remains above target. Liquidity in the UAE banking sector
continues to remain very healthy.
Emirates NBD Research revised its 2023 forecast for Brent oil down to an average of USD 88/b and the
outlook for the UAE economy remains constructive. Despite this lower forecast oil price, it is expected that
the Kingdom of Saudi Arabia will still deliver a balanced budget this year.
-ENDS-
Awards:
Emirates NBD won ‘Middle East's Best Private Bank for Digital’ and ‘Best Domestic Private Bank
in the UAE’ by Euromoney Global Private Banking Awards 2023
Emirates NBD won ‘Best Private Bank Digital Solutions for Clients’ in the Middle East and UAE by
Global Finance World’s Best Private Banks Awards 2023
Emirates NBD KSA won ‘Best Foreign Bank in KSA’ by International Finance Awards, The Global
Economics Awards and The Global Business Outlook Awards 2022, and ‘Most Innovative Retail
Bank – Saudi Arabia 2022’ by Global Economics Awards and ‘Best Green Building Initiative –
Banking KSA 2022’ by the International Finance Awards
Emirates NBD Capital won ‘Best Investment Bank in the Middle East’, ‘Best Local Investment Bank
in the UAE’, ‘Best Debt House in the UAE’, ‘Best Loan House in the UAE’, ‘Best Foreign Bank in
the KSA by EMEA Finance - Middle East Banking Awards 2022
Emirates NBD Capital won ‘Best Islamic Investment Bank (Global)’, ‘IFN Syndicated Deal of the
Year’, ‘IFN Turkiye Deal of the Year’ and ‘Best Investment Bank in the UAE’ by the Islamic Finance
News Awards 2022
Emirates NBD was named the UAE’s most valuable banking brand and MENA’s third most
valuable banking brand, with a value of USD 3.89 billion, in The Banker’s 2023 brand valuation
Emirates NBD won Grand Prix in ‘Glass: The Award for Change’ category for Emirati Women’s
Day Campaign at the Dubai Lynx Awards 2023
Emirates NBD has a leading retail banking franchise, with 874 branches and 4,144 ATMs / SDMs in the UAE and overseas. It is a
major player in the UAE corporate and retail banking arena, and has strong Islamic banking, investment banking, private banking,
asset management, global markets & treasury and brokerage operations. The bank has operations in the UAE, Egypt, India, Turkey,
the Kingdom of Saudi Arabia, Singapore, the United Kingdom, Austria, Germany, Bahrain, Russia and representative offices in China
and Indonesia. For more information, please visit: www.emiratesnbd.com
For more information:
Ibrahim Sowaidan Patrick Clerkin
SVP, Head - Group Corporate Affairs Senior Managing Director, Group Funding & Investor Relations
Emirates NBD Emirates NBD
Telephone: +971 4 609 4113 / +971 50 6538937 Telephone: +971 4 609 3007
e-mail: ibrahims@emiratesnbd.com e-mail: IR@EmiratesNBD.com / PatrickE@EmiratesNBD.com
This document has been prepared by Emirates NBD Bank PJSC (ENBD) for information purposes only. The information, statements and opinions contained in this document do not constitute a public offer under
any applicable legislation or an offer to sell or solicitation of an offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. This
document is not intended for distribution in any jurisdiction in which such distribution would be contrary to local law or reputation. The material contained in this press release is intended to be general background
information on ENBD and its activities and does not purport to be complete. It may include information derived from publicly available sources that have not been independently verified. No representation or
warranty is made as to the accuracy, completeness or reliability of the information. It is not intended that this document be relied upon as advice to investors or potential investors, who should consider seeking
independent professional advice depending on their specific investment objectives, financial situation or particular needs. In the event that the press release contains any pro forma financial information on ENBD,
that information has been prepared for illustrative purposes only, may address a hypothetical situation and may not give a true picture of the financial performance of the ENBD group. Furthermore, any pro forma
financial information may only be meaningful where read in conjunction with the historical audited consolidated financial statements of ENBD. Unless expressly disclosed to the contrary, any pro forma financial
information has been compiled based on the accounting policies of the group as disclosed in its most recent consolidated financial statements. This document may contain certain forward-looking statements with
respect to certain of ENBD’s plans and its current goals and expectations relating to future financial conditions, performance and results. These statements relate to ENBD’s current view with respect to future
events and are subject to change, certain risks, uncertainties and assumptions which are, in many instances, beyond ENBD’s control and have been made based upon management’s expectations and beliefs
concerning future developments and their potential effect upon ENBD. By their nature, these forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which
are beyond ENBD’s control, including, among others, the UAE domestic and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, the policies
and actions of regulatory and Governmental authorities, the impact of competition, the timing impact and other uncertainties of future acquisition or combinations within relevant industries. As a result, ENBD’s
actual future condition, performance and results may differ materially from the plans, goals and expectations set out in ENBD’s forward-looking statements and persons reading this document should not place
reliance on forward-looking statements. Such forward-looking statements are made only as at the date on which such statements are made and ENBD does not undertake to update forward-looking statements
contained in this document or any other forward-looking statement it may make.
Page 7 of 7 | neutral |
Zoho Sign Document ID: 8TORCJS3OGIVHABT2BS9L20T_MQHSMS0UZLDO9W8R1S
discussion report and analysis of the board of directors for Al
Wathba National Insurance Company (PJSC)
___________________________________________________________
Date 8th Aug,2022
Name of the Listed Company Al Wathba National Insurance Company (PJSC)
The period of the financial
Q2, 2022 Financials
statements covered by the report
GWP: AED 150.22 M
Overview of the main results Net Underwriting Income: AED 8.13M
during the financial period Net Investment Income: AED 22.45 M
Net Profit: 30.58 M
Securities issued during the
NA
financial period
Summary of the most
We are making steady progress in IFRS 17 implementation in
important non-financial events
the company and expecting to complete the same by end of
and developments during the
third quarter of 2022.
financial period
During this period, we have achieved total premiums of
150.22 million and insurance profit of 8.13 million dirhams.
Summary of operational
performance during the
The company has also registered net Investment profit of
financial period
22.45 million.
Net profit for the period is AED 30.58 million dirhams
Summary of profit and loss
compared to net profit of AED 105.88 million dirhams for the
during the financial period
previous period.
Summary of financial position Total Deposits & Cash: AED 143.38M
as at the end of the financial Total Technical Reserve: AED 324.40M
period Total Share Holders Equity: AED 961.11M
Net Cash generated from operating Activities: AED (27.28) M
Summary of cash flows during
Net Cash Generated in Investing Activities: AED 94.79 M
the financial period
Net Cash Generated in Financing Activities: AED (60.35) M
GWP Growth: (17)%
Main performance indicators
Net Loss Ratio: 56.93%
Page 1 of 2Zoho Sign Document ID: 8TORCJS3OGIVHABT2BS9L20T_MQHSMS0UZLDO9W8R1S
Net Expense Ratio: 34.71%
Combined Ratio: 91.64%
The average premiums for the motor insurance segment
continues to be under pressure in the market. The escalation
Expectations for the sector and in vehicle repairs cost and increase in average commissions
the company's role in these to intermediaries has further deteriorated the profitability of
expectations the segment. AWNIC was successful in diversifying its
portfolio adding more business in commercial lines to
mitigate the reduction in motor premiums.
The increase in oil prices coupled with investment friendly
Expectations regarding the regulatory changes in UAE is expected to act as a catalyst for
economy and its impact on the further growth in the sector. Inflation continued to pick up
company and the sector during the 2nd quarter of 2022 and is expected to have an
impact on the cost of operations.
AWNIC will continue to invest in digitization and automation
Future plans for growth and
to further its growth aspirations. The commercial lines
changes in operations in future
portfolio continues to grow with the introduction of new
periods
product lines.
The size and impact of current
and projected capital Net Capital expenses for the period was AED 692 K.
expenditures on the company
The developments of the
implementation of projects,
Inflationary pressures and reduction in margins were
plans and transactions and
discussed by the Board and management was assigned with
deals that were discussed by the
devising strategies to continue the growth path navigating
company's board of directors in
through the current market conditions.
the report for the previous fiscal
year
Bassam Chilmeran
Chief Executive Officer
08/08/2022
Page 2 of 2 | positive |
01141
ESHRAQ
Eshraq Investments reports Q1 2023 financial results
• Eshraq records steady progress on financial strategy of successful
diversification and land monetization programme
• Gross profit of AED 8.3 million for period ending 31 March 2023
• Cash position of c. AED 81 million for deployment in new opportunities
• Net loss of AED 34 million largely from mark-to-market movement in
investments
Abu Dhabi, UAE; 10 May 2023: Eshraq Investments PJSC ("Eshraq" or
"Company"), listed on the Abu Dhabi Securities Exchange ("ADX"), has
announced its Q1 2023 financial results. The Company recorded a gross profit
of AED 8.3 million for the first quarter of 2023 as compared to a gross profit of
AED 7.9 million for the same period last year, and a net loss of AED 34 million
in the first quarter of 2023 on account of mark-to-market movement in financial
and real estate investments.
Leasing and hospitality businesses:
The Company’s residential apartments in Marina Rise and Nuran Marina hotel
apartments registered record YTD occupancy rates of 93% and 97% respectively,
demonstrating their premium standing in the market. The commercial
operations generated AED 8.3mn profit in the first quarter.
Asset monetization progress:
Eshraq continued to make rapid progress on its land bank and low profitability
asset monetization strategy. To date, the Company has concluded sale of seven
land plots representing 27% of its existing land bank by book value with total
sale consideration of AED 208 million.
In Q1 2023, the Company finalised the sale of 57 apartment units in Burj Daman
at a total selling price of AED 158.8 million. Although the transaction led to a
AED 26.5 million realized loss in Q1 2023, the transaction helped the Company
reduce its debt by AED 55 million and monetize assets that were generating less
than 3% net equity return. The Company plans to deploy the proceeds in
profitable and accretive long-term investments and share buybacks.
Page 1 of 3Share Buyback Programme
In line with the Board's continued commitment to enhance shareholder returns,
and as part of the Company’s current buyback program, to date Eshraq has
bought back c. 70.5 million shares at an average price of AED 0.4977. The share
buyback has resulted in a gain to shareholders of AED 40.6 million on account
of share buyback at discount to Eshraq’s book value. The Company currently
holds 93.06 million treasury shares. The Company intends to resume its
buyback program after the expiry of 3-day blackout period following the
announcement of Q1 2023 results.
“Our results this quarter demonstrate our continued progress of our focused
strategy to strengthen our long term shareholder return,” said Mr. Jassim
Alseddiqi, Eshraq's Chairman. “Eshraq remains in a transitory phase where we
are divesting our land bank and other suboptimal investments. In the next three
years, we are planning to monetize all our non-income generating assets and
reinvest the proceeds towards profitable investments, such that our entire AED
2.8bn of share capital generates stable profits for Eshraq’s shareholders.”
Added Mr. Alseddiqi, “This is a pivotal time for Eshraq and we aim to strengthen
our market presence through imminent senior leadership appointments. Looking
ahead, we will continue to navigate market conditions and seek new investment
opportunities at attractive return potential to deliver value to our shareholders.
We remain confident that these efforts will help us strengthen our asset portfolio
and enhance investor appetite.”
-END-
***
About Eshraq Investments:
Eshraq Investments is an investment Company based in Abu Dhabi, UAE, with
assets of more than AED3 billion in real estate, public equities, fixed income,
private equity and debt products. For further information, please visit
www.eshraquae.com.
Page 2 of 3For media enquiries on Eshraq, please contact:
Omar Nasro
Associate Director
ASDA’A BCW
Dubai, UAE
Tel : 971-4-450-7600
Email : Omar.Nasro@bcw-global.com
Page 3 of 3 | positive |
Multiply Group P.J.S.C
Financial results
for Q3 2022
ADX: MULTIPLY
www.multiply.ae
28 October 2022Financial Results | Q3 2022 l
Multiply Group reports net profit leap to AED 9.29 billion in Q3
2022
Profit and loss statement highlights
AED '000
Three months period ended 30 September 2022
Revenue 284,118
Cost of sales (145,418)
Gross margin 49%
General and administrative expenses (51,232)
Operating margin 33%
Investment and other income 9,250,667
Finance cost (51,621)
Net profit for the period 9,286,514
Net profit attributable to owners 9,251,936
Net profit attributable to non-controlling interests 34,578
Earnings per share 0.83
Net Profit Cash Position incl. Liquid Assets
(Financial quarter ending 30 September, 2022) (As of 30 September 2022)
AED
9.29
billion AED
26.08
billion
Gross margin Total Assets
(As at 30 September 2022) (As at 30 September 2022)
49 % 30.58
AED billion
MULTIPLY GROUP 2Financial Results | Q3 2022 l
“
SAMIA BOUAZZA
GROUP CHIEF EXECUTIVE OFFICER AND MANAGING DIRECTOR
"Multiply Group delivered a strong quarter with substantial
investment gains and continued growth of our verticals.
Going forward, we are actively ensuring deal flow continues at a
similar pace throughout the fourth quarter and into next year. We see
significant investment opportunities, locally and globally, particularly
within our mobility vertical and will continue to acquire cash-
generating assets and further accelerate our companies’ growth."
ABU DHABI, 28 October 2022 – Multiply Group (ADX: MULTIPLY), an Abu Dhabi-based investment
holding company, reported AED 9.29 billion in net profit for the third quarter of 2022 as it continued
to deliver strong performance across its investments and subsidiaries.
The Group's Q3 2022 figures showed revenue of AED 284 million and gross margin of AED 138.7
million.
The quarter saw continued sustainable growth across the Group's subsidiaries, which grew by 67% in
revenue and profitability year-on-year.
Meanwhile, investment and other income was recorded at AED 9.25 billion, driven by the strong
performance of both the Group's portfolio and local financial markets.
With moderate leverage and liquid assets, the Group is in a strong position to push ahead with its
investment strategy in transformative cash-generating businesses it understands.
As of 30 September 2022, Multiply Group total assets As of 30 September 2022, Multiply Group current assets
grew by 275% compared with 30 September 2021. grew by 310% compared with 30 September 2021.
MULTIPLY GROUP 3Financial Results | Q3 2022 l
Q3 2022 Group Highlights
Key Investments
The third quarter of 2022 saw Multiply Group strengthen its energy and utilities vertical with two
strategic investments.
The Group acquired a 7.3% stake in Abu Dhabi National Energy Company PJSC (“TAQA”) for AED 10
billion. TAQA is one of the largest listed integrated utility companies in Europe, Middle East and Africa
(EMEA), with operations in 11 countries across four continents. It has significant investments in power
and water generation, transmission and distribution assets. With ambitious growth plans around
renewable energy, TAQA is one of the largest players contributing to the UAE’s 2050 net zero agenda.
Multiply Group also acquired 80% of International Energy Holding (“IEH”). IEH recently acquired a 50%
stake in Kalyon Enerji Yatrimlari A.Ş., a market leading clean and renewable energy company based in
Turkey. Kalyon Enerji’s assets include a PV power plant project with an installed capacity of 1.3 GW in
the Konya’s Karapinar region and other renewable energy projects in various cities of Turkey.
These investments are part of a drive to grow all verticals and reflect the Group's view that utilities
and energy offer predictable, recurring revenue as well as strong growth potential as the world
transitions to clean and renewable energy.
Subsidiary Milestones
The Group's subsidiaries grew across all verticals in Q3 2022, continuing their strong and sustainable
performance witnessed across the first half of the year.
As of 30 September 2022, Multiply Group’s revenue
grow by 67% compared to the same period last year.
Omorfia Group, which comprises of personal care and beauty companies, expanded its Tips & Toes
brand with the opening of two new branches, in Park Point, Dubai Hills Estate and Silicon Central,
Dubai.
Emirates Driving Company (“EDC”) signed two Memorandum of Understanding (MoU) with the
Integrated Transport Centre and Emirates Transport respectively. The former aims to keep both
parties abreast of technological developments in the transport sector, enhance cooperation and
jointly instil a culture of safe driving in Abu Dhabi. The latter focuses on strengthening cooperation in
MULTIPLY GROUP 4Financial Results | Q3 2022 l
the training of drivers and bus supervisors, technical services, lease of vehicle and sites, and private
security services, among others.
Meanwhile, Viola Communications, a fully-integrated marketing and communications
solutions provider completed the first phase of the digital transformation of bridges along Abu Dhabi’s
high-visibility roads and major arterial roads. The second phase will commence on additional bridges
and totem signs is expected to be completed by 31 December 2022.
Inclusion In New Indices
Finally, the quarter saw the Group being included in the S&P UAE BMI Liquid 20/35 Capped Index and
S&P UAE Shariah Liquid 35/20 Capped Index. The indices measure the performance of the S&P UAE
BMI and the most liquid and Shariah-compliant stocks in the UAE, respectively. The Group’s addition
to these indices, which are provided by S&P Dow Jones Indices, also resulted in its inclusion in Chimera
S&P UAE UCITS ETF and Chimera S&P UAE SHARIAH ETF.
---ENDS---
ABOUT MULTIPLY GROUP
With its trademark growth mindset, Multiply Group invests in transformative cash generating
businesses it understands.
The Group continues to expand by organically growing existing businesses, empowering them with
capital, technology and tools to acquire or create innovative solutions, gain operational excellence
and become leaders in their industries. In terms of inorganic growth, Multiply Group pursues scalable
acquisitions, with sustainable growth and expansion potential, focusing on well-established and
leading organisations across its industries.
Multiply Group’s investments span many industries including businesses such as Emirates Driving
Company, PAL Cooling Holding, Omorfia Group, Viola Communications, HealthierU, International
Energy Holding, TAQA, DEWA, Borouge Getty Images, Savage X Fenty, Firefly and Yieldmo.
Major shareholders of Multiply Group include International Holding Company (IHC), one of the fastest
growing and most valuable companies in the UAE.
CONTACTS
Multiply Group Brunswick Group
Mehdi Bizri | Investor Relations Officer Sherri Chua / Ailsa Martin
mehdi@multiply.ae multiply@brunswickgroup.com
MULTIPLY GROUP 5 | positive |
Tabreed Boosts its Roadmap to Net-Zero, following Impressive
Results from World-first District Cooling Nanofluid Pilot Study
• Pioneering nanofluid technology, developed by HTMS, demonstrates potential to
increase District Cooling energy efficiency by up to 15%
Abu Dhabi, United Arab Emirates – 9 November 2023: Tabreed, the world’s leading district
cooling company, in partnership with Ireland-based HT Materials Science (HTMS), has concluded
what is believed to be the world’s first pilot project of its kind, demonstrating results that provide
real hope for significant gains in energy efficiency.
Applied across Tabreed’s current portfolio of 89 district cooling plants, the heat transfer fluid
technology developed by HTMS – known as ‘Maxwell’ – could result in efficiency increases of
between nine- and 15%. Theoretically this could mean preventing approximately 200,000 metric
tons of greenhouse gas (GHG) emissions annually, as a result of decreased electrical energy
consumption. For context, this would equate to removing 43,500 cars from the roads each year
as a result of saving 335 million kWh of electricity, which is enough to power approximately
20,000 homes.
Maxwell, named after James Clerk Maxwell, the pioneering scientist who first developed the
concept of nano fluids in the 19th century, is an engineered suspension of sub-micron aluminium
oxide particles in a base fluid of water or water/glycol (‘nanofluid’) – a drop-in additive for cooling
and heating systems, that works by enhancing heat transfer. It was trialled in the summer of 2023
at a Tabreed district cooling plant in Khalifah City, Abu Dhabi, which exclusively supplies chilled
water to a 55,742 square metre educational campus.
The performance of the Maxwell nanoparticle fluid technology at Tabreed’s facility, evaluated
under industry-approved Energy Efficiency Analysis (EEA), demonstrated that its addition
increased efficiency of the plant’s chillers by 13.6%, leading to an overall plant efficiency
improvement of 9.0%, compared with the same period in 2022.
Tabreed’s CEO, Khalid Al Marzooqi, said this development is testament to the company’s tireless
pursuit of energy efficiency at every level of its operations, adding that “as a sustainable cooling
champion focused on innovation, we are always looking for ways to accelerate the energy
transition and provide more efficient services that benefit our customers, our stakeholders and
the communities in which Tabreed operates.“This successful pilot project proves the power of international partnership and technological
collaboration, and we look forward to working with HTMS to further the application of their
technology to advance sustainable cooling solutions that benefit communities and industries
across the world.
“In real terms, what we are looking at here is a potentially seismic improvement in energy
efficiency that could radically change this industry. That Tabreed is spearheading such
developments should not be a surprise, and I am proud to be leading such a progressive and
impactful company that’s completely aligned with the UAE’s inspirational Net-Zero strategy.”
How Maxwell Works in a Chilled Water System
Maxwell’s nanotechnology increases the thermal capacity of water, the base fluid for commercial
and industrial chilled water systems. When added to a chilled water loop at a 2% concentration
of nano materials, Maxwell increases the system’s cooling capacity by up to 15%. This increased
cooling capacity allows chillers, fan units, pumps and other equipment to operate more
efficiently, reducing electrical energy consumption and carbon emissions. Maxwell is a non-toxic,
non-corrosive material and fully recoverable and recyclable.
Next Steps
Following the promising pilot study results, Tabreed and HTMS are in discussions to introduce
the Maxwell technology to other district cooling facilities in the company’s portfolio. With cooling
accounting for an estimated 70% of energy consumption in the GCC, and global demand expected
to triple by 2050, this technology could potentially play a critical role in reducing the
environmental impact of an industry already widely viewed as an essential contributor to
sustainability, with district cooling being up to 50% more energy efficient than conventional
cooling methods.
Commenting on the successful pilot project, Thomas Grizzetti, CEO of HTMS, said: “Thanks to
the ease of installation, and use in both new and existing HVAC systems, Maxwell can have a
material impact on energy usage and the carbon footprint of a broad range of industries and
sectors globally. Maxwell is a significant step forward for businesses wishing to drive down energy
use, increase system capacity and meet regulated energy efficiency targets increasingly
promulgated by governments globally. We believe Tabreed is an ideal strategic partner for HTMS
to help achieve widespread adoption of this unique technology.
-ENDS-About National Central Cooling Company PJSC (Tabreed)
Tabreed provides essential and sustainable district cooling services to iconic developments such
as the Burj Khalifa, Sheikh Zayed Grand Mosque, Louvre Abu Dhabi, Ferrari World, Emirates
Towers, Yas Island, Al Maryah Island, The Dubai Mall, Dubai Opera, Dubai Metro, Bahrain
Financial Harbor and the Jabal Omar Development in the Holy City of Makkah. The company owns
and operates 89 plants in its portfolio, including 75 in the United Arab Emirates, five in the
Kingdom of Saudi Arabia, seven in Oman, one in the Kingdom of Bahrain and one in India, in
addition to other international projects and operations.
Tabreed is a leading driver of progress for people, communities and environments around the
world towards a more sustainable future. Founded in 1998 and publicly listed on the Dubai
Financial Market, it is one of the UAE’s strongest growth companies. Through its extensive
regional and international operations, industry-leading reliability and efficiency, R&D
programmes and investment in AI technology, Tabreed further solidifies its position as the
industry's global leader. In addition to district cooling, Tabreed’s energy efficiency services
extend the company’s sustainability impact, helping businesses and organisations to improve
their overall energy consumption, in turn preventing CO emissions and assisting in the
2
achievement of carbon neutrality objectives.
About HTMS
Founded in 2018, HTMS is the developer of Maxwell – an innovative, sub-micron heat transfer
fluid. Maxwell is a drop-in additive for use in new or existing commercial and industrial heating
and cooling systems. Maxwell enhances heat transfer, resulting in a substantial reduction in
energy consumption and an increase in system capacity. The company is headquartered in
Ireland with offices in Dublin, Italy and New York City. For more information, visit
www.htmaterialsscience.com | positive |
ABU DHABI COMMERCIAL BANK PJSC
Q1 2023
EARNINGS PRESS RELEASE
AND MANAGEMENT
DISCUSSION & ANALYSIS
17 April 2023
Investor Relations
adcb.com/irInvestor Relations
ADCB reports record net profit of AED 1.878 bn in Q1’23,
up 27% YoY
Abu Dhabi, 17 April 2023 – Abu Dhabi Commercial Bank PJSC (“ADCB” or the “Bank”)
today reported its financial results for the first quarter of 2023 (“Q1’23”).
Solid performance driven by core income Q1’23 key highlights
generation and strong fundamentals
1.878
bn
Q1’23 Key highlights (vs. Q1’22)
Net profit (AED)
> Net profit of AED 1.878 bn increased 27%
> Net interest income of AED 2.851 bn increased 33% 14.3
%
> Non-interest income of AED 1.061 bn increased 34%
Return on average
> Operating income of AED 3.912 bn increased 33% tangible equity
> Cost to income ratio of 31.5% improved by 660 bps
12.93
> Operating profit before impairment charge of AED 2.681 bn %
increased 47%
CET1 ratio
Total assets cross the AED 500 bn mark, 132.9
%
with continued loan and deposit growth
Liquidity
coverage ratio
> Total assets of AED 501 bn increased 13% from Mar’22 and 1%
from Dec’22
75
> Net loans of AED 264 bn were 7% higher from Mar’22 and up bps
2% from Dec’22. New credit extended totalled AED 20 bn in the
first quarter Cost of risk
> Total customer deposits of AED 311 bn were 19% higher from
Mar’22 and up 1% from Dec’22. CASA (Current and savings
account) deposits were up AED 5 billion during the quarter to
AED 158 bn, comprising 51% of total customer deposits at March-end
> Capital adequacy and CET1 ratios were 15.67% and 12.93%
respectively
> Liquidity coverage ratio (LCR) of 132.9%
> Cost of risk was 75 basis points for Q1’23. NPL ratio was at
5.42% (6.06% including POCI), while provision coverage ratio was
92.4% (143% including collateral held)
Q1 2023 Earnings Press Release and Management Discussion & Analysis 2Investor Relations
ALA’A ERAIQAT Group Chief Executive Officer
ADCB has maintained its growth momentum into 2023, delivering a 27% year-on-year increase
in net profit to AED 1.878 billion in Q1’23, which equates to a return on average tangible equity
of 14.3%.
We are pleased to achieve these record quarterly results, especially in light of the heightened
uncertainty in the global economy and international banking sector. ADCB’s performance is being
driven by a solid balance sheet, prudent risk management, and a resilient UAE economy that
benefits from strong long-term fundamentals.
The Bank has continued to deliver credit growth and our strong reputation in the market has
attracted further deposit inflows. Total assets crossed the AED 500 billion mark during the first
quarter for the first time, solidifying ADCB’s standing as a leading UAE financial institution.
Growth is being generated across all our business segments. It is powered by a
market-leading digital offering, with ADCB listed as the only financial institution included in the top five
brands in KPMG’s UAE Customer Experience Excellence Report. The Bank is taking further steps to drive
digital-enabled growth, delivering a number of new partnerships this year to provide our customers
with exclusive opportunities in the UAE and internationally.
In the first quarter, ADCB welcomed over 114,000 new retail customers, with 80% joining through our
digital channels. Our cards business, personal and auto loans and mortgages provided combined
asset growth of 11% year on year (1), reflecting positive consumer sentiment and ADCB’s ability to
remain closely attuned to the market. The Bank experienced its fastest pace of growth in credit
card issuance, with the recently launched ‘365 Cashback Card’ achieving record sales in its first
month.
The Corporate and Investment Banking Group also continues to expand and diversify its loan
portfolio. Furthermore, the business is building a strong track record in structuring complex
transactions, loan syndications and capital markets advisory. The Bank has been active on a
number of significant equity and debt capital raising transactions for our clients in the first quarter.
Our first quarter performance demonstrates that ADCB continues to be a highly trusted partner
in the UAE economy, supported by our sharp focus on customer service excellence. The Bank
benefits from a strong financial position and remains on a positive growth trajectory.
114,000+
New retail customers in Q1’23
(1) ADCB Group’s UAE operations including Al Hilal Bank
Q1 2023 Earnings Press Release and Management Discussion & Analysis 3Investor Relations
DEEPAK KHULLAR Group Chief Financial Officer
ADCB has continued to display strong business and financial fundamentals. In the first quarter,
the Bank achieved steady loan and deposit growth, with efficiency metrics trending in line with
our medium-term guidance.
Net interest income of AED 2.851 billion was 33% higher than a year earlier, while non-interest
income was up 34% at AED 1.061 billion. Operating profit before impairment allowances was up
47% year on year at AED 2.681 billion.
Given the global economic slowdown, the Bank recognises the importance of maintaining balance
sheet strength to enhance long-term resilience. ADCB retains substantial capital buffers and benefits
from a strong liquidity position, with funding remaining well-diversified.
During the first quarter, our asset base continued to expand, with net loans increasing by 2%
sequentially and 7% higher year on year. Growth has been broad-based, with AED 20 billion in
new credit extended during the first quarter, offset by AED 15 billion in repayments.
Customer deposits were up 1% sequentially and 19% higher than a year earlier, with CASA deposits
increasing AED 5 billion during the quarter and accounting for 51% of the total. This is a notable
achievement in the context of rising benchmark rates over the last 12 months and a testament to
ADCB’s strong franchise.
The Bank has continued to take a disciplined approach to managing its cost base in light of the
global inflationary environment. In the first quarter, operating expenses reduced 5% sequentially,
with the cost to income ratio improving to 31.5% from 38.1% a year earlier.
While the Bank is successfully delivering growth, we are also ensuring that our business is
sustainable. Having embedded ESG into our corporate strategy, the Bank is stepping up green
financing initiatives to support clients in their decarbonisation journey. To reinforce this commitment,
in January ADCB signed the UAE Climate-Responsible Companies Pledge with the Ministry of
Climate Change and Environment in support of the UAE’s net zero ambitions.
With the UAE hosting the COP28 global climate conference in November, ADCB stands ready to
channel the expertise and dedication of our teams to support investment into a cleaner, increasingly
diversified economy.
AED 20 bn
New credit extended in Q1’23
Q1 2023 Earnings Press Release and Management Discussion & Analysis 4Investor Relations
Q1 2023 Management discussion & analysis
Q1 2023 financial highlights
Income statement highlights (AED mn) Q1’23 Q4’22 Q1’22 ∆QoQ% ∆YoY%
Total net interest and Islamic financing income 2,851 2,918 2,146 (2) 33
Non-interest income 1,061 1,486 789 (29) 34
Operating income 3,912 4,403 2,936 (11) 33
Operating expenses (1,231) (1,302) (1,118) (5) 10
Operating profit before impairment allowances 2,681 3,101 1,818 (14) 47
Impairment allowances (748) (1,193) (294) (37) 154
Net profit for the period(1) 1,878 1,784 1,483 5 27
Balance sheet highlights (AED mn) March’23 Dec’22 March’22 ∆QoQ% ∆YoY%
Total assets 501,423 497,842 445,677 1 13
Net loans and advances 263,533 258,493 245,797 2 7
Deposits from customers 310,587 308,931 261,891 1 19
Key metrics (%) Q1’23 Q4’22 Q1’22 ∆QoQ bps ∆YoY bps
CAR (Capital adequacy ratio – Basel III) 15.67 15.77 16.02 (10) (35)
CET1 (Common equity tier 1) ratio 12.93 12.96 13.03 (3) (10)
Liquidity coverage ratio (LCR) 132.9 138.9 126.1 (600) 680
Loan to deposit ratio 84.9 83.7 93.9 120 (900)
CASA/total customer deposits 51 50 58 100 (700)
Non-performing loan (NPL) ratio 5.42 5.25 5.71 17 (29)
Provision coverage ratio(2) 92.4 93.0 86.9 (60) 550
NPL ratio including POCI(3) 6.06 6.07 7.10 (1) (104)
Cost of risk (COR)(4) 0.75 1.21 0.30 (46) 45
Cost to income ratio 31.5 29.6 38.1 190 (660)
Net interest margin (NIM) 2.69 2.72 2.28 (3) 41
Risk adjusted NIM 2.00 1.61 1.99 39 1
Return on average tangible equity (ROATE) 14.3 15.1 12.6 (80) 170
Note: Figures may not add up due to rounding differences
(1) After share in profit of associates, overseas income tax charge, and profit/loss from discontinued operations
(2) Provisions on loans and advances, including fair value adjustments
(3) POCI: Purchase or originated credit-impaired financial assets
(4) COR: Net impairment charge on loans and investments divided by net average loans & advancements and investment
Q1 2023 Earnings Press Release and Management Discussion & Analysis 5Investor Relations
Key highlights
Steady growth in diversified income streams and significantly improved
cost to income ratio in line with guidance
> Net interest income in Q1’23 was AED 2.851 billion, up 33% YoY, driven by increased lending and
rising benchmark rates. Net interest margin (NIM) of 2.69% increased by 41 bps YoY and was 3 bps
lower QoQ. The slight sequential decline was on account of higher interest in suspense reversals
recorded in Q4’22. Risk-adjusted NIM improved 39 bps QoQ on lower impairment charges.
> The Bank’s non-interest income remained a source of strength in Q1’23, increasing 34% YoY to
AED 1.061 billion. The sequential decrease of 29% was primarily due to one-off gains recorded
in the previous quarter related to the sale of NPLs, resulting in other operating income decreasing
to AED 73 million in Q1’23 from AED 595 million in Q4’22.
> Net fee and commission income of AED 533 million increased 9% YoY and was 14% lower
QoQ. Gross card-related fees were up 9% and gross loan processing fees were up 8% YoY.
The Corporate and Investment Banking Group continued to increase fee income, driven by
prominent ECM and DCM mandates. Net trading income in Q1’23 was AED 455 million, up 78%
QoQ and 290% YoY, mainly on account of higher gains from derivatives, foreign exchange and
financial assets at fair value through profit or loss.
> The Bank’s cost to income ratio improved 660 bps YoY to 31.5% in Q1’23, in line with medium
term guidance. Operating expenses of AED 1.231 billion were 10% higher YoY on continued
investment in people and technology to support growth, including higher commission paid to
Retail and SME agents on increased sales volumes. Sequentially, operating expenses were 5%
lower on decreased staff costs due to the timing of variable pay accruals and payments, while
marketing expenses and maintenance costs also reduced.
> Net impairment charges of AED 748 million was 37% lower sequentially, on account of higher
provisioning in Q4’22 due to a couple of corporate accounts. The 154% increase YoY was partially
due to significant releases in Q1’22 as the UAE economy rebounded from the global pandemic.
> ADCB reported a record net profit of AED 1.878 billion in Q1’23, an increase of 27% YoY and 5%
QoQ. Return on average tangible equity was 14.3% compared to 12.6% in Q1’22.
Assets exceed AED 500 billion milestone, while strong franchise delivered
continued deposit growth, with CASA deposits rising AED 5 billion in Q1’23
> Sustained balance sheet strength, with total assets of AED 501 billion, up 1% from Dec-end and
13% higher YoY.
> Net loans and advances to customers were AED 264 billion, up 2% from Dec’22 and 7% higher
YoY. Floating interest rate loans represented 74% of total loans. Growth was broad-based, with
AED 20 billion in new credit extended to corporates in diverse economic sectors including
trading, financial institutions and manufacturing, as well as personal loans. The Bank received
AED 15 billion in repayments during the quarter.
Q1 2023 Earnings Press Release and Management Discussion & Analysis 6Investor Relations
> The Group’s investment securities were AED 118 billion, up 5% QoQ and 22% YoY, with 57%
accounted for at amortised cost and 43% at fair value through other comprehensive income
(FVTOCI) and marked to market on a daily basis. The Bank was a net lender of AED 14 billion in
the interbank markets as at March-end.
> Total customer deposits stood at AED 311 billion, up 1% QoQ and 19% YoY. CASA deposits
increased by AED 5 billion during the quarter to AED 158 billion, representing 51% of total customer
deposits. CASA deposits were well-balanced across the business, with Corporate and Investment
Banking accounting for 50%, and Retail Banking and Private Banking representing 50%.
> Total shareholders’ equity was AED 62 billion as at 31 March 2023, compared to AED 61 billion
at Dec-end.
> The Bank continues to be well-capitalised with capital adequacy (Basel III) and CET1 ratios of
15.67% and 12.93% respectively as at 31 March 2023, versus 15.77% and 12.96% at the end
of 2022.
> ADCB continues to have a robust liquidity position, with a liquidity coverage ratio of 132.9%, a
liquidity ratio of 31.5% and a loan to deposit ratio of 84.9% as at 31 March 2023.
Cost of risk trending in line with guidance of 80 bps amid a resilient
UAE economy
> Cost of risk of 75 bps in Q1’23, remained steady versus 76 bps in FY’22 and in line with medium-
term guidance of 80 bps.
> The NPL ratio was 5.42% compared to 5.25% at Dec-end, and including net POCI (purchase or
originated credit impaired) assets, the NPL ratio was stable at 6.06%.
> The provision coverage ratio was 92.4% compared to 93.0% at Dec-end, while including collateral
held, it was 143% compared to 144% at year-end.
Digital platforms instrumental in onboarding quarterly record of 114,000
new retail customers
> ADCB welcomed over 114,000 new retail banking customers in Q1’23, the highest ever in a
quarter, with 80% onboarded digitally.
> Digital banking subscribers increased 30% and active users were up 36% YoY. 87% of customers
are now registered for digital banking (internet and mobile) platforms.
> Activity on ADCB’s digital platforms continued to increase, with retail digital transactions rising
34% YoY to over 40 million in Q1’23, while mobile fund transfers were up 66% YoY. Self-service
retail transactions represented 96% of all customer transactions in Q1’23.
> ADCB and Al Hilal Bank entered a new partnership with digital bank Nomo, part of Bank
of London and Middle East (BLME), to allow UAE residents to open United Kingdom-based
Shari’ah-compliant multi-currency current and savings accounts, as well as to access UK home
financing through dedicated apps.
> ADCB’s IPO portal continued to provide customers with convenient access to new investment
opportunities, accounting for 93% of total subscriptions received by the Bank for the ADNOC Gas
and Al Ansari IPOs, totalling AED 485 million of orders.
Q1 2023 Earnings Press Release and Management Discussion & Analysis 7Investor Relations
> ADCB launched 11 digital enhancements in Q1’23, including introduction of a bill payment service
through WhatsApp.
> Wholesale Banking transactions on the ProCash and ProTrade platforms accounted for 97% of
all cash management transactions and 65% of trade finance transactions, respectively. The Bank
enhanced the ProCash digital platforms, by improving efficiency and security measures, such as
the integration of facial recognition to the ProCash mobile app.
ADCB signs UAE Climate-Responsible Companies Pledge and makes
progress in measurement of Scope 3 emissions
> Ahead of the UAE’s hosting of the COP28 climate conference this year, ADCB signed the UAE
Climate-Responsible Companies Pledge in January 2023. The initiative of the UAE Ministry for
Climate Change and Environment requires signatories to commit to disclosing their plans to reduce
greenhouse gas emissions and to integrate climate considerations throughout their operations.
> The Bank completed a baseline assessment of clients’ financed emissions in accordance
with Partnership for Carbon Accounting Financials (PCAF) standards, a critical exercise for the
measurement of future progress on Scope 3 emissions.
> ESG has been embedded in to Corporate and Investment Banking Group’s account planning
processes to facilitate the Bank’s support for clients on ESG-related opportunities.
> ADCB published its ‘2022 Sustainability Review’, including 31 ESG KPIs as defined by Abu Dhabi
Securities Exchange (ADX), with third-party assurance by Deloitte.
> A bank-wide e-learning module on the UN Sustainable Development Goals (SDGs) was rolled out to
all employees, with bespoke sustainability training provided to executive and senior management.
ADCB Egypt sustains strong growth momentum
> ADCB Egypt continues to experience strong growth momentum supported by increased loans
and deposits, while moving ahead with digital transformation to enhance the customer experience.
During the quarter, ADCB Egypt joined Instapay, Egypt’s mobile payment network, enabling the
Bank’s customers to transfer money from their mobile device and manage multiple accounts.
– Net profit (1) in Q1’23 increased 92% YoY to EGP 363 million, representing a return on
equity of 22%
– Net loans increased 3% QoQ to EGP 31 billion as at 31 March 2023
– Total deposits increased 2% QoQ to EGP 77 billion as at 31 March 2023
– Digital transformation continued to gain momentum, with digital subscribers increasing
by 79% YoY
(1) Based on IFRS
Q1 2023 Earnings Press Release and Management Discussion & Analysis 8Investor Relations
Al Hilal Bank attracted +27,000 new banking customers in Q1’23, bringing
the total to c.160,000 since launch of super app
> Al Hilal Bank’s new super app attracted over 65,000 new registered users in Q1’23, with more than
27,000 subscribing to banking services. This brought total new banking customers onboarded by
the app to c.160,000 since its launch in February 2022.
> The super app has experienced strong levels of engagement, with an average of over 3,200
transactions carried out daily. The Bank continues to develop its ecosystem of strategic commercial
partnerships to enhance the app’s virtual market place and range of family-focused services.
> Al Hilal Bank enhanced the speed and efficiency of the onboarding process on its super app by
maximising the application of the “UAE Pass” national digital identity system -- earning recognition
as the top finance application for integrating the UAE Pass.
> Al Hilal Bank is extending its reach through the app beyond its core Abu Dhabi market, with
residents of Dubai and the Northern Emirates accounting for 27% and 35% of banking customers,
respectively.
> In line with Al Hilal Bank’s transition to a fully digital, cloud-based Islamic bank, five branches were
closed during the first quarter.
Q1 2023 Earnings Press Release and Management Discussion & Analysis 9Investor Relations
ADCB Q1 2023 and 2022 awards and recognition
THE ASIAN BANKER EXCELLENCE GLOBAL FINANCE 2022 MIDDLE EAST WEALTHTECH
IN RETAIL FINANCIAL SERVICES AWARDS 2022
Best Trade Finance Provider
AWARDS 2023
in the UAE Global Deal of the Year
Best Retail Bank in Middle East
Best Retail Bank in UAE
MEA FINANCE EUROMONEY CASH
MANAGEMENT SURVEY 2022
Best Online Banking Service
THE ASIAN BANKER MIDDLE Best Service: Overall, Business
EAST & AFRICA 2022 - Functions, Financial Facilities,
EXCELLENCE IN RETAIL Personnel, Services, Tech Provisions
FINANCIAL SERVICES AWARDS CAMBRIDGE INTERNATIONAL in the Middle East
FINANCIAL ADVISORY, UK
Best Mobile Banking Service
Best Islamic Retail Banking Window
in the UAE
in the UAE 2022 MENA BANKING
EXCELLENCE AWARDS 2022
ABF WHOLESALE BANKING Excellence in Employee Engagement
AWARDS 2022 FORBES
UAE Domestic Trade Finance Bank ADCB ranked top GCC bank in
of the Year Forbes 2022 survey ARC AWARDS 2022
'World’s Best Employers'
Gold Award
Best International Annual Report
THE DIGITAL BANKER
MIDDLE EAST AND AFRICA THE MARTECH POWER LIST 2022
RETAIL BANKING INNOVATION
AWARDS 2022 Loyalty Leaders GTR LEADERS IN TRADE AWARDS
Best eKYC for Self-Service KYC Update Best Trade Bank in MENA
Initiative via Internet Banking, Mobile
PFI AWARDS
Banking and KYC portal
Highly Acclaimed in the Best Digital Global Deal of the Year ZURICH SUSTAINABILITY
Transformation Program category AWARD 2022
(for IPO Portal)
Adoption of Digital Platform
ADCB Egypt 2022 awards and recognition
THE DIGITAL BANKER INTERNATIONAL FINANCE INTERNATIONAL BUSINESS
MAGAZINE
Best Graduate Employment Best Finance Inclusion Package
Program 2022 Towards People with Disabilities Best Digital Banking Services Provider
Egypt 2022 Egypt 2022
Excellence in Digital
Innovation 2022 Most Innovative New Digital Bank Best Mobile Banking Egypt 2022
Egypt 2022
Best Financial Inclusion Best Online Banking Egypt 2022
Initiatives 2022
Best Financial Inclusion Initiative
Egypt 2022
GLOBAL FINANCE 2022
WORLD BUSINESS OUTLOOK Best User Experience 2022
Best New Bank Egypt 2022 WORLD UNION
OF ARAB BANKERS
Fastest Growing Retail Bank
Egypt 2022 The Fastest Bank in Terms of Growth
and Development
Fastest Growing Corporate Bank
Egypt 2022
Fastest Growing Bank Egypt 2022
Q1 2023 Earnings Press Release and Management Discussion & Analysis 10Investor Relations
Further information on ADCB can be found at
adcb.com/ir or by contacting:
Investor Relations Abu Dhabi Commercial Bank
Denise Caouki Sheikh Zayed Bin Sultan Street
Email: ir@adcb.com PO Box: 939, Abu Dhabi
adcb.com
Corporate Communications
Majdi Abd El Muhdi
Email: majdi.a@adcb.com
This document has been prepared by Abu Dhabi Commercial Bank PJSC (“ADCB”) for information
purposes only. The information, statements and opinions contained in this document do not constitute
a public offer under any applicable legislation or an offer to sell or solicitation of an offer to buy any
securities or financial instruments or any advice or recommendation with respect to such securities
or other financial instruments. This document is not intended for distribution in any jurisdiction in
which such distribution would be contrary to local law or reputation.
The material contained in this press release is intended to be general background information on
ADCB and its activities and does not purport to be complete. It may include information derived from
publicly available sources that have not been independently verified. No representation or warranty
is made as to the accuracy, completeness or reliability of the information. It is not intended that this
document be relied upon as advice to investors or potential investors, who should consider seeking
independent professional advice depending on their specific investment objectives, financial situation
or particular needs.
This document may contain certain forward-looking statements with respect to certain of ADCB’s
plans and its current goals and expectations relating to future financial conditions, performance
and results. These statements relate to ADCB’s current view with respect to future events and
are subject to change, certain risks, uncertainties and assumptions which are, in many instances,
beyond ADCB’s control and have been made based upon management’s expectations and beliefs
concerning future developments and their potential effect upon ADCB.
By their nature, these forward-looking statements involve risk and uncertainty because they relate to
future events and circumstances which are beyond ADCB’s control, including, among others, the UAE
domestic and global economic and business conditions, market related risks such as fluctuations
in interest rates and exchange rates, the policies and actions of regulatory and Governmental
authorities, the impact of competition, the timing impact and other uncertainties of future acquisition
or combinations within relevant industries.
As a result, ADCB’s actual future condition, performance and results may differ materially from the
plans, goals and expectations set out in ADCB’s forward-looking statements and persons reading this
document should not place reliance on forward-looking statements. Such forward-looking statements
are made only as at the date on which such statements are made and ADCB does not undertake
to update forward-looking statements contained in this document or any other forward-looking
statement it may make.
Q1 2023 Earnings Press Release and Management Discussion & Analysis 11 | neutral |
PRESS RELEASE
Dar Al Takaful (DAT) announces its consolidated Q3 2022 results
Dubai, UAE, November 15, 2022 – Dar Al Takaful PJSC (“DAT” or the “Company”) reported its interim financial
results for the third quarter of 2022 including the consolidated financial statements of the merged entity
resulting from the merger between DAT and Watania on 1 July 2022.
The Company has successfully concluded the majority of the merger related synergies at the end of the third
quarter of 2022. As a result of the merger and integration process, the Company has incurred one-off merger
related expenses (≈AED 15.0 million) that included costs related to system redundancies, IT harmonization,
resource rationalization, consultant fees, and consolidation adjustments. This impact was seen on the bottom
line of DAT’s consolidated statements, registering a net loss of AED 26.9 million in 9M 2022.
In addition to the one-off merger related expenses, the Company’s key Medical portfolio faced headwinds in
the form of pricing pressures and increased hospital utilization post-COVID which negatively impacted the
quarter’s operational income.
DAT remains focused on enhancing its overall operational and financial performance post-merger, and a net
saving of ≈AED 20.0 million is expected to accrue as a result of the completion of all the merger synergies.
This will generate positive returns for shareholders and policyholders in 2023 and beyond.
Financial Highlights:
• Gross written contributions for 9M 2022 at AED 598.0 million, up 2.8% year-on-year (y-o-y) showing
resiliency and strong business fundamentals
• Operating expenses of AED 78.9 million during the period compared to AED 55.7 million in 9M 2021
due to merger related one-off expenses and consolidation adjustments (≈AED 15.0 million)
• Net loss of AED 26.9 million in 9M 2022 due to higher personnel costs and one-off merger related
expenses
• Investment income increased to AED 5.3 million during the first nine months of this year (up 70.4%
y-o-y) as a result of higher returns from invested and pooled assets
Dr. Ali Saeed Bin Harmal Aldhaheri, Chairman of DAT, said:
“During the third quarter, we successfully completed the merger as well as the integration process as planned.
The merger and integration related expenses combined with some operational challenges affected our
financial performance during the quarter. However, the implementation of our clear strategy ensured that
the business has been future-proofed through various operational and performance enhancing drivers.
We have significantly improved our ability to create sustainable value for all of our key stakeholders and
support the delivery of higher quality services as well our offering to deliver protection and financial security
to our Participants (policyholders) when they need it most.
Head Office: 0 -14 Tower-Business Bay I Tel: +97143041500 I Fax: +97145530389 I P.O.BOX: 235353, Dubai, UAE info@dat.ae I
www.dat.ae I 800-Takaful (8252385)
1We are now better positioned to benefit from potential growth opportunities stemming from our expanded
footprint across Abu Dhabi and Dubai markets and the rebalancing of our product mix. This, combined with
our improved and more transparent framework to inform capital allocation decisions and working capital
management, will lead to improve our financial performance and drive sustainable profitability from 2023
onwards.”
Addressing the operational and business drivers that were achieved during the quarter, Gautam Datta, Chief
Executive Officer of DAT, said:
“During the reporting quarter, we implemented a targeted strategic framework to bring about the merger’s
synergies and executed key business and operational drivers to ensure we are building one of the leading UAE
Takaful providers.
As a priority, on the 1st of July, the first legal trading day of the merged entity, we completed the consolidation
of the two IT platforms into one unified infrastructure. We also reviewed the organizational structure and took
steps to rationalise resources and streamline the merged entity’s human capital to achieve synergies, improve
efficiencies and lower costs.
The broader distribution network, innovation across functions, increased efficiencies, transparency of
reporting, and digitization of processes is transforming the organization into an agile and streamlined
business with a significantly enhanced ability to offer higher levels of service excellence to our policyholders.
While we completed the integration process between the two merged companies in Q3 2022, the new
branding is progressing at pace and is expected to be completed during the current financial year.”
ENDS
About Dar Al Takaful PJSC
Dar Al Takaful PJSC was established in 2008 as a Shari’ah-Compliant insurance company. In 2020, it completed the acquisition of
Noor Takaful Family PJSC and Noor Takaful General PJSC. An award-winning insurance company, Noor Takaful has won the
prestigious Insurance Brand of The Year 2021 award, conferred by Global Banking and Finance Review, as well as the Best Takaful
Company 2021 and Most Innovative Takaful Company 2021, both awarded by World Business Outlook.
In July 2022, Dar Al Takaful completed the merger with National Takaful Company PJSC (Watania), forming one of the leading
national Takaful providers in the UAE with share capital of AED 260 million. The merged entity, Dar Al Takaful, trades on the DFM
under the ticker [DARTAKAFUL] It focuses on deepening customer reach, leveraging economies of scale, and delivering best-in-class
protection and financial security to its policyholders. By capitalizing on its larger underwriting capacity, the company looks to offer
more comprehensive and favorable coverage to meet the needs of a wider client base in the UAE’s addressable market, with
further growth across the GCC region.
Dar Al Takaful PJSC’s vision is to provide protection and peace of mind. In line with its vision, Dar Al Takaful offers innovative ethical
insurance solutions and promotes a culture of excellence among its staff. It offers a full range of takaful products - general, medical,
and family - to both individuals and companies in the UAE. The products are offered at its head office in Dubai, online, and through
its branches in Abu Dhabi, Sharjah, and Ajman.
Head Office: 0 -14 Tower-Business Bay I Tel: +97143041500 I Fax: +97145530389 I P.O.BOX: 235353, Dubai, UAE info@dat.ae I
www.dat.ae I 800-Takaful (8252385)
2 | positive |
Aramex Achieves Robust Operating Margins Through Diversified Portfolio and
Home Market Resilience Amid Global Uncertainties
• Through persistent global challenges, inflationary environment and currency fluctuations,
Aramex delivered a robust Revenue of AED 1.35 billion in Q3 2023, a decline of 5% Year-on-Year
(YoY) and a resilient Gross Profit of AED 335 million, a growth of 4% YoY. Excluding the foreign
exchange translation impact, Revenue decline was 2% and Gross Profit growth was 8%.
• Aramex's strategically balanced geographical presence continues to be an advantage; the GCC
remains the highest contributor to Group revenues with a share of 40% of total revenues, with
the region also reporting 21% growth YoY in its Gross Profit in Q3 2023.
• The Company reported robust margin performance with Gross Profit margin increasing to 25%
and a stable EBITDA margin of 10%.
• EBITDA reached AED 134 million, a decline of 5% YoY in line with Revenue softness indicating the
continued focus on quality business, disciplined cost management and investment in operational
efficiencies.
• The Company's prioritization of cost management is also evidenced by the notable 9% decline in
the Group’s organic (excl MyUS) General, and Administrative Expenses (G&A) in Q3 2023.
Notably, selling expenses for the organic business increased during the quarter, in line with the
Company’s strategy to increase sales competencies in key verticals across key markets.
• Reported Net Income declined to AED 9.6 million for the Q3 2023 reporting period, largely led
by the steep increase in interest rates since the MyUS acquisition. Net income normalized for the
FX impact and the increase in finance expense loans following the acquisition of MyUS
transaction stood at AED 30.4 million in Q3 2023, a decline of 23% YoY.
• Aramex's International Express segment achieved steady growth, posting a 4% YoY increase in
revenue, despite the softness in volumes. The Domestic Express business was resilient both on a
YoY and sequential basis. Despite industry headwinds, our focus on Freight-Forwarding
delivered strong margins and for our logistics business, we continue to reposition it with increase
in quality revenue from strategic sectors.
Dubai, UAE – 8 November 2023: Aramex (DFM: ARMX), a global leader in comprehensive logistics and
transportation solutions, today released its financial results for the third quarter of the year ending
September 30, 2023.
Q 3 Q 3 % Change % Change
In Thousands of UAE Dirhams
2023 2022 (YoY) (YoY; excl
FX)
Revenues 1,349,678 1,426,250 (5%) (2%)
Gross Profit 334,657 320,827 4% 8%
Gross Profit Margin 25% 22%
EBIT 44,709 50,907 (12%)
EBIT Margin 3% 4%
EBITDA 133,866 141,357 (5%)
EBITDA Margin 10% 10%Net Profit 9,642 39,643 (76%)
Net Profit Margin 1% 3%
Normalized Net Profit* 30,420 39,643 (23%)
* Net income was normalized for the FX impact and the increase in finance expense loans in Q3 2023 compared to
Q3 2022, noting that the MyUS acquisition was closed in Q4 2022.
Financial Performance Commentary
In the third quarter of 2023, Aramex sustained its performance with Group revenues amounting to AED
1.35 billion. This represents a moderate 5% YoY decline, attributed to currency fluctuations,
macroeconomic challenges, and subdued global retail activity in certain markets. Notably, when
excluding the impact of foreign exchange (FX) translation, the decline in revenue was 2%.
The quarter bore testament to the Company's enduring resilience, as evidenced by a noteworthy 4%
YoY increase in Gross Profit and a resilient EBITDA of AED 134 million for the third quarter of 2023. This
progress was underpinned by the company's proactive measures to boost operational efficiencies and
optimize General and Administrative expenses (G&A) for the organic business (excluding MyUS). Our
prudent cost management resulted in strong margins in Q3, with a Gross Profit Margin of 25% and an
EBITDA margin of 10%.
Despite the increase in selling expenses, which aligned with our focus on sales specialism and enhancing
competencies, Aramex remained steadfast in its commitment to cost-efficiency. Notably, the third
quarter of 2023 showcased the Company’s ability in this regard, as evidenced by a noteworthy 9% YoY
reduction in organic (excluding MyUS) G&A expenses. This achievement signifies Aramex’s agility and
effectiveness in managing costs, effectively bringing organic G&A back to pre-pandemic levels.
The Company reported a Net Profit of AED 9.6 million in Q3 2023, a notable decline from AED 39.6
million recorded in Q3 2022. More than half of the decline in net income can be attributed to the interest
expenses related to the acquisition of MyUS due to the steep increase in interest rates since the
transaction. Therefore, normalized net income – excluding the FX impact and the increase in finance
loan expenses – was AED 30.4 million in Q3 2023, a decline of 23% YoY.
Aramex's strategically diversified geographical presence remains a key advantage, with the GCC region
consistently leading the way by contributing a remarkable 40% of the Group's total revenues.
Aramex maintained a strong balance sheet position with Net Debt-to-EBITDA ratio of 2.6x and a
healthy cash balance of AED 604 million as of September 30, 2023.
Othman Aljeda, Chief Executive Officer, Aramex, said: "In the face of an ongoing global growth
slowdown, Aramex remains steadfast in its commitment to a strategic framework centered on
operational efficiency, high-quality sales, and stringent cost management. Our focus on cost
optimization has been pivotal in maintaining steady operating margins, even amidst the challenges
posed by currency fluctuations and the interest rate environment.
‘’The slight softening in revenue can be attributed to global headwinds, FX translations and reduced
retail activities. However with the resilience of consumer spending in the GCC, the region continues to
be a key driver of growth, reporting a 21% YoY growth in Gross Profit in Q3 2023.
‘’As we continue to execute Q4, historically a stronger quarter marked by increased retail activity during
festivals, our primary focus will be to deliver outstanding services to our customers. We will continue
enhancing trade lanes, enriching the customer experience and fortifying our operational capabilitiesacross all business lines. Our goal is to expand our quality business lines, focusing on B2B, direct brands,
SMEs, and premium offerings such as same and next-day deliveries.”
Business Performance
International Express (Including Shop & Ship and MyUS)
Q3 Q3 % Change
In Thousands of UAE Dirhams
2023 2022 (YoY)
Revenues 511,951 493,927 4%
Gross Profit 182,510 151,839 20%
Gross Profit Margin 36% 31% 5%
International Express Shipment Volumes
Q3 Q3 % Change
In millions of shipments
2023 2022 (YoY)
Total Number of Shipments 4.9 5.1 (5%)
International Express Q3 Revenue grew by 4% YoY, reaching AED 512 million, despite the softening
of shipment volumes due to the slowdown in retail activity. Premium products (same day and next day
–intra GCC) and dangerous goods continue to perform well.
Reported Gross Profit for Q3 2023 reached AED 183 million, marking a 20% YoY increase and a solid
Gross Profit Margin of 36%. It is worth noting that the Express product costs had a positive impact
during Q3 2023 which we do not expect to recur in future quarters.
Several factors, including improvements in linehaul costs and other cost optimization measures, as well
as the consolidation with MyUS, continue to support the performance of the international express
product. Notably, the organic business (excl MyUS) also reported significant improvement - cost per
shipment was well managed, resulting in a 12% YoY increase in Gross Profit per shipment.
Domestic Express
Q3 Q3 % Change
In Thousands of UAE Dirhams
2023 2022 (YoY)
Revenues 352,597 369,820 (5%)
Gross Profit 72,164 88,902 (19%)
Gross Profit Margin 20% 24% (4%)
Domestic Express Shipment Volumes
Q3 Q3 % Change
In millions of shipments
2023 2022 (YoY)
Total Number of Shipments 24.5 24.4 0%
Domestic Express reported stable Revenue of AED 353 million in Q3 2023, representing a modest
decline of 5% YoY, due to marked currency fluctuations. Excluding the FX impact, revenue grew 4%.
Volumes were stable for the domestic express product. It is important to note, excluding Oceania,
where a turnaround plan is currently in progress, the domestic volume growth was 2% in Q3 2023
compared to the same period last year, driven by volume growth in GCC and MENAT.The lower Gross Profit margin is primarily attributed to the softness in Oceania, as well as a different
allocation of resources within the Group. Aramex’s automation and operational efficiency efforts have
pushed up courier productivity by 6%; Aramex’s Pick-Up and Drop-Off (PUDO) network increased by
65% this quarter compared to the same period last year.
Freight-Forwarding
Q3 Q3 % Change
In Thousands of UAE Dirhams
2023 2022 (YoY)
Revenues 367,911 439,530 (16%)
Gross Profit 58,314 60,782 (4%)
Gross Profit Margin 16% 14% 2%
Freight-Forwarding Shipment Volumes
Q3 Q3 % Change
2023 2022 (YoY)
Air Freight (KGs) 10,901,706 11,773,193 (7%)
Sea Freight (FCL TEU) 8,051 7,766 4%
Sea Freight (LCL CBM) 5,439 4,759 14%
Land Freight (FTL) 7,718 7,355 5%
Land Freight (LTL KGs) 53,409,441 38,523,420 39%
Aramex's Freight-Forwarding business continues to deliver quality business, with solid growth in
volumes and good profitability. Although a 4% YoY softening in Gross Profit was observed in Q3 2023,
this was predominantly influenced by the reduction in global shipping rates during that period which
impacted revenues.
The business has shown resilience through the economic cycles, as evidenced by the notable
improvement in the Gross Profit margin, which increased to 16%.
Logistics and Supply Chain Solutions
Q3 Q3 % Change
In Thousands of UAE Dirhams
2023 2022 (YoY)
Revenues 104,813 110,475 (5%)
Gross Profit 11,651 8,707 34%
Gross Profit Margin 11% 8% 3%
Logistics and Supply Chain Solutions Revenue witnessed a 5% decline YoY to AED 105 million in Q3
2023, primarily due to FX translations. However, when FX is factored out, Revenue grew 1% in Q3 2023.
The rebalancing of the logistics business continues, with increase in sales from strategic sectors such as
retail and energy. Sequentially, Q3 2023 saw a decline in sales and margins compared to Q2 2023 due
to loss of business, following the acquisition of our customer by a company already having Logistics
infrastructure. New business wins secured in Q3 2023 will be reflected in the financials in 2024.
- EndsAbout Aramex:
Aramex, established 40 years ago, has emerged as a global leader in logistics and transportation, renowned for its
innovative services tailored to businesses and consumers. As a listed company on the Dubai Financial Market (DFM)
and headquartered in the UAE, our strategic location facilitates extensive customer reach worldwide, bridging the
gap between East and West.
With operations in 600+ cities across 70+ countries, Aramex employs over 16,000 professionals. Our success is
attributed to four distinct business products that provide scalable, diversified, and end-to-end services for
customers. These products are:
• International Express, encompassing Aramex's Parcel Forwarding Business (Shop & Ship and MyUS).
• Domestic Express
• Freight Forwarding
• Logistics & Supply Chain Solutions
Sustainability is at the core of our vision and mission. To build a truly sustainable business, we leverage our core
competencies to make a positive impact as responsible members of the communities we serve. Through
partnerships with local and international organizations, we strive to expand our reach and benefit more individuals
through targeted programs and initiatives. To address environmental concerns and combat climate change, we
have committed to the Science Based Targets initiative (SBTi), renowned globally. This commitment propels us to
accelerate our climate action goals, aiming for Carbon-Neutrality by 2030 and Net-Zero emissions by 2050.
For more information, please visit us: www.aramex.com
Follow us on:
For more information, please contact:
Aramex
Anca Cighi
Investor Relations Director
Investorrelations@aramex.com
Edelman Smithfield
Shruti Choudhury Shraddha Sundar
Account Director Account Manager
M: +971 54 586 7874 M: +971 50 735 0608
E: Aramex@edelmansmithfield.com E: Aramex@edelmansmithfield.com | positive |
Air Arabia reports record first nine months net profit of
AED 1.32 billion, up 53%
• Third quarter 2023 net profit increases 26% reaching AED 522 million; and 21%
increase in number of passengers carried.
• The financial and operational results are an all-time record high for the carrier.
Sharjah, UAE; November 13, 2023: Air Arabia (PJSC), the Middle East & North Africa’s first and largest
low-cost carrier operator, today announced a record financial and operational results for the third quarter
and first nine months ending September 30, 2023.
Air Arabia reported an all-time record AED 1.32 billion net profit the first nine months ending September
30, 2023, an increase of 53 per cent compared to the same period last year, while revenue for the first
nine months increased by 16 per cent reaching an impressive AED 4.45 billion.
First Nine Months 2023 Performance:
AED 9M 2023 9M 2022 %
Revenue AED 4.45 billion AED 3.84 billion 16%
Passenger Numbers*all hubs* 12.4 million 9.1 million 36%
Seat Load Factor 80% 79% 2%
Net Profit AED 1.32 billion AED 867 million 53%
Sheikh Abdullah Bin Mohamed Al Thani, Chairman of Air Arabia, said: “Air Arabia maintained its robust
growth in the first nine months of this year by expanding operations across its seven operational hubs
and introducing new routes to enhance the carrier’s global network. The increase in capacity during this
period was complemented by an impressive surge in passenger numbers, reaching a total of 12.4 million,
and marking a remarkable 36% increase compared to the first nine months of last year. Air Arabia
remains unwavering in its commitment to diversify and expand its business, while simultaneously
investing in innovative products that aim to enhance every aspect of our customers' journey."
Air Arabia also reported record profitability of AED 522 million for the third quarter ending September 30,
2023; an increase of 26% compared to the same period last year, while revenue for the third quarter
2023 reached an impressive AED 1.63 billion.Third Quarter 2023 Performance:
AED 3Q 2023 3Q 2022 %
Revenue AED 1.63 billion AED 1.6 billion 1%
Passenger Numbers*all hubs* 4.7 million 3.9 million 21%
Seat Load Factor 80% 80% .
Net Profit AED 522 million AED 416 million 26%
Al Thani continued: “Air Arabia’s record performance in the third quarter of this year was driven by robust
passenger demand and effective cost control measures implemented by the management team. The
remarkable performance is a testament to Air Arabia’s operational and commercial strategy,
demonstrating the company’s steadfast commitment to consistently providing genuine value to its
customers”.
Nine Months 2023 Highlights:
Fleet
• Two leased Airbus A320 aircraft were added during the third quarter bringing the total fleet to 72
leased and owned Airbus A320 and A321.
• Four short-term leased Airbus A320 aircraft were added to Morrocco hub during the third quarter
to support summer season operations.
Network
• Air Arabia added a total of 17 new routes to its global network in the first nine months 2023
bringing the total network size to 206 routes from seven operating hubs.
• The capacity available across all hubs increased by 33% during the first nine months 2023
compared to the same period last year.
Digital Transformation
• Full implementation of an Enterprise Resource Planning (ERP) to drive automation and efficiency.
• Rollout of Electronic Tech Logbook and upgrade of Electronic Flight Bag equipment to achieve a
paperless and efficient process across operations.Liquidity
• AED 4.9 billion in cash and cash equivalent.
Recognition
• Air Arabia was awarded “Low-Cost Airline of the year” and ranked the highest operating margin
in the world by Airline Weekly as well as first on the Airfinance journal top 100 airlines worldwide
for four consecutive years.
• Fly Jinnah tops Pakistan Civil Aviation ranking for outstanding punctuality and regularity.
• Fly Arna successfully obtains IOSA certificate.
Social Responsibility
• A new medical clinic was established in Tajikistan in the first nine months 2023, joining the 15
schools and clinics that Air Arabia’s corporate social responsibility program “Charity Cloud’
currently runs across 12 countries.
Outlook
Al Thani concluded: “The demand for our value-driven product continues to be solid and we remain
cautiously optimistic as we continue to navigate the ever-changing landscape of the current geopolitical
and macroeconomic environment. Equally, we remain focused on innovation, efficiency, and cost control
across the breadth of our operations. While challenges persist in the near term, we have full confidence
in the business model that we operate, our ability to continue driving growth, and our product offering that
continuously delivers optimum value to our customer”.
-Ends-
Notes: *All hubs*: Air Arabia Group seven hubs in the UAE, Morocco, Egypt, Armenia, and Pakistan.
@airarabiagroup
#AirArabia
#Q3ResultsAbout Air Arabia:
Air Arabia (PJSC), listed on the Dubai Financial Market, is the Middle East and North Africa’s leading low-cost carrier (LCC)
operator. Air Arabia commenced operations in October 2003 and currently operates a total fleet of 72 new Airbus A320 & A321
aircraft, serving some 206 routes from seven hubs in the UAE, Morocco, Egypt, Armenia (Fly Arna), and Pakistan (Fly Jinnah).
Air Arabia Group is an award-winning airline operator that focuses on offering comfort, reliability, and value-for-money air travel.
For further information, please visit: www.airarabia.com.
For more information please contact:
Press Office
Air Arabia PJSC
Sharjah, UAE
Tel: 971-6-5088977
Email: pressoffice@airarabia.comPress release
Air Arabia places order for 240 LEAP-1A engines
• Agreement to power the carrier’s order of 120 Airbus A320neo family of aircraft
DUBAI, UAE – 14 November 2023 – Air Arabia, the Middle East, and North Africa first and largest
low-cost carrier operator, announced today a significant milestone in its ongoing commitment to
enhancing its fleet and operations. Following a signing ceremony attended by senior executive from
CFM and Air Arabia during Dubai Airshow 2023, the airline has announced the order for 240 CFM
LEAP-1A engines to power its existing order of 120 Airbus A320neo family aircraft, including brand
new A321XLR. The agreement includes a multi-year services agreement and spare engines.
The deal, with a total book value exceeding US $3.36 billion (listed price), will support Air Arabia’s
fleet growth and future expansion. The state-of-the-art LEAP-1A engines are set to propel Air
Arabia’s existing order of 120 Airbus A320-neo family aircraft, which is comprised of 73 A320neo,
27 A321neo and 20 A321XLR airplanes which are scheduled for delivery in 2025.
Air Arabia became a CFM customer in 2003 as the airline kicked off operations with a CFM56-5B-
powered Airbus A320. The company currently operates a total fleet of 71 Airbus A320ceo and A321
neo-LR aircraft.
“We are delighted to expand our partnership with CFM International. This engine order marks a
significant milestone in Air Arabia's journey of growth and advancement” said Adel Al Ali, Group
Chief Executive Officer of Air Arabia. “The efficiency and performance of the CFM engine will play a
crucial role in supporting our fleet expansion strategy which includes the most efficient fuel
consumption and minimizing the environmental footprint. This investment underscores our
unwavering commitment to achieving higher levels of operational efficiency, maintaining reliability,
and actively contributing to a more sustainable aviation industry.”
“We are honored to further expand our longstanding partnership with Air Arabia through today’s
order of 240 engines,” said Gaël Meheust, CEO of CFM International. “This renewed trust is a
valuable recognition of LEAP engine performance. We are looking forward to introducing the LEAP
into their fleet and to supporting the region with our unmatched capability.”
The LEAP engine family has the fastest accumulations of flight hours in commercial aviation history,
amassing more than 30 million engine flight hours and 13 million flight cycles.
As the airline completes 20 years of successful operations, Air Arabia continues to drive industry
standards while maintaining its operations excellence and customer experience. This engine
acquisition is a testament to the airline’s dedication to innovation and excellence in the low-cost
industry.
The advanced CFM LEAP engine family provides 15 to 20 percent better fuel consumption and
lower CO2 emissions, as well as a significant improvement in noise compared to previous
CFM, CFM56, LEAP, and the CFM logo are trademarks of CFM International, a 50/50 joint company between Safran Aircraft Engines and GE
Classification: Externalgeneration engines. Since its entry into service in 2016, the LEAP engine allowed our customers to
save more than 20 million tons of CO2*.
*Compared to same flights powered by CFM56 engines.
-END-
About CFM International
A 50/50 joint venture between GE Aerospace and Safran Aircraft Engines, CFM International has
redefined international cooperation and helped change the course of commercial aviation since its
founding in 1974. Today, CFM is the world's leading supplier of commercial aircraft engines with a
product line that sets the industry standard for efficiency, reliability, durability, and optimized cost
of ownership. CFM International produces the LEAP family of engines and supports LEAP and
CFM56 fleets for operators worldwide. www.cfmaeroengines.com
About Air Arabia:
Air Arabia (PJSC), listed on the Dubai Financial Market, is the Middle East and North Africa’s leading
low-cost carrier (LCC) operator. Air Arabia commenced operations in October 2003 and currently
operates a total fleet of 71 new Airbus A320 & A321 aircraft, serving some 190 routes from seven
hubs in the UAE, Morocco, Egypt, Armenia (Fly Arna), and Pakistan (Fly Jinnah). Air Arabia Group is
an award-winning airline operator that focuses on offering comfort, reliability, and value-for-money
air travel. For further information, please visit: www.airarabia.com
# # #
CFM, CFM56, LEAP, and the CFM logo are trademarks of CFM International, a 50/50 joint company between Safran Aircraft Engines and GE
Classification: External | positive |
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Registration No. (17) under Federal Law No. (6) of 2007.
SALAMA
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ISLAMIC ARAB INSURANCE CO.(P.S.C.)
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SECURING OUR FUTURE, together.
Date: 14/11/2023
SALAMA reports strong financial performance with 19% growth in
net profit, achieving AED 18.6 million for 9M 2023
• SALAMA reported a 19% increase in net profit, reaching AED 18.6 million for 9M 2023,
and a notable 21% growth in revenue, amounting to AED 824.3 million for 9M 2023
• The company's substantial financial growth is attributed to effective strategic initiatives,
including enhanced underwriting, digital development, client portfolio expansion, and
new partnership channels
Dubai, November 14, 2023: Islamic Arab Insurance Company (DFM listing: “SALAMA”),
UAE’s largest Takaful solutions provider, posted a net profit of AED 18.6 million for the first
nine months of 2023 (9M 2023), a healthy 19% rise from AED 15.6 million reported in the
corresponding period of the previous year.
The company reported a significant 21% growth in revenue for the 9M 2023, reaching AED
824.3 million, compared to AED 679.0 million during the same period last year. The
substantial increase highlights SALAMA’s robust market presence and the successful
execution of its strategic business initiatives including a renewed focus on underwriting,
further development of digital capabilities, an expanded client portfolio, and expansion
of distribution channels through new partnerships.
Shareholder’s investment income increased to AED 65.9 million, a notable rise reflecting
the company’s growth trajectory. Total assets registered a slight increase at AED 3,596.6
million, in comparison to the previous quarter at AED 3,588.8 million.
SALAMA's commitment to transparent and accountable financial practices is exemplified
by the successful adoption of IFRS 17 standards. This step enhances clarity, consistency,
and comparability in financial reporting.
H.E. Saeed Alhajeri, SALAMA’s Chairman, remarked: “In the first nine months of this year,
SALAMA has achieved strategic growth by combining resilience with profitable expansion,
underpinned by innovation and agility. Our investments in expanding our network,
enhancing our products and services, and forging new partnerships have been pivotal in
delivering value to our modern and technologically adept customers. Emphasizing our
commitment to Emiratisation, we continue to foster the development of local talent,
aligning with the nation's vision and contributing to the UAE’s solid economic progress. This
approach is integral to our objective of generating sustainable, long-term value for all our
stakeholders, while nurturing a workforce that reflects the rich heritage and ambitious
future of the UAE.”
SALAMA’s agile transformation is positioning the company to be future-ready, elevating
the customer journey and broadening our portfolio with innovative product lines including
life, health/medical, motor, and other line of businesses. This expansion, supported by
ijuxujjll .litnll Head Office
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SALAMA - Public.GA/OiiuJCl) jgJLoJI i. JQ»pJ (IV) fOcdjJI ot.j.q.q
Registration No. (17) under Federal Law No. (6) of 2007.
SALAMA
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ISLAMIC ARAB INSURANCE CO.fP.S.C.)
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SECURING OUR FUTURE, together.
robust underwriting and efficient business operations, ensures the highest level of service
excellence for our clients.
Walter Jopp, SALAMA’s CEO, added: “In an ever-evolving market landscape, our
unwavering commitment lies in the customer-centricity of our Shariah-compliant products.
By leveraging technology and fostering robust partnerships, we aim to sustain and
enhance our strong market position. Our credibility and reputation for quality, along with
our dedication to high service standards and adherence to Takaful best practices,
distinctively position us as a leading provider of quality Takaful solutions. This focus on
customer needs and experiences is at the heart of our operations, ensuring we consistently
deliver superior value and service to our clients.”
SALAMA is the largest Sharia’h Compliant Takaful solutions provider in the UAE with a “AAA”
capital adequacy rating from S&P.
Ends
Press Contact
SALAMA ASDA’A BCW
Sadia Noori Omar Nasro
Head of Marketing Associate Director
Tel: +971 4 407 9940 Tel: +971 4 450 7600
Email: sadia.noori@salama.ae Email: omar.nasro@bcw-global.com
Notes to editor:
About SALAMA Islamic Arab Insurance Company
SALAMA Islamic Arab Insurance Company is one of the world’s largest and longest-established Shari’ah
compliant Takaful solutions providers listed on the Dubai Financial Market, with paid-up capital of Dh 939
million. SALAMA has been a pioneer in the Takaful industry from its incorporation in 1979 to the present
day.
SALAMA’s stability and success can be attributed to its customer-centric approach, keeping clients and
partners at the heart of the business, and its commitment to its core values and principles. SALAMA
continues to design and develop solutions that meet the ever-changing demand of customers. Today,
SALAMA is recognized for providing the most competitive and diverse range of Takaful solutions in the
region.
SALAMA serves individual customers and institutions in the UAE and, through its extensive network of
subsidiaries and associates in Egypt and Algeria.
As the UAE’s leading Takaful company, SALAMA offers a comprehensive range of family, motor, general
and health Takaful solutions. Due to its reputation for high-quality products and services and
implementation of Takaful best practice, SALAMA won the “Family Takaful Company of the Year” at
Middle East Insurance Industry Awards 2015, “Best Family Takaful Operator ME” at Islamic Banking &
Finance Awards 2016, “Best Takaful Operator” at Islamic Business and Finance Awards 2019, “Takaful
Company of the Year” at Middle East Insurance Industry Awards 2020, “Takaful Company of the Year -
UAE ” at Global Business Outlook Awards 2021, “Best Takaful Service Provider” at Global Economics
Awards 2021, “Decade of Excellence Takaful Provider - UAE” at Global Banking & Finance Awards 2021,
“Takaful Specialist of the Year” at The Mena Insurance Awards 2022, and the recent “Leading Innovative
ijuxujjll .litnll Head Office
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SECURING OUR FUTURE, together.
Takaful Solution Provider” at Insuretek Middle East Insurance Industry Awards 2022. In 2023 SALAMA won
Takaful Specialist at the MENA Insurance Awards 2023 and Takaful Solution Provider” at Insuretek Middle
East Insurance Industry Awards 2023. SALAMA continues to be the preferred Takaful partner by its partners
and customers, remaining committed to ‘Securing our future - together.’
ijuxujjll < lllflll Head Office
[Ogjliim djLu - IjJI 4th Floor - Spectrum Building
Oud Metha - Dubai, U.A.E.
' " i.rit P.O.Box: 10214
A. .Vforir Tel: 800725262
info@salama.ae ^yySJjJI xijJI E-mail: info@)salama.ae
www.salama.ae g-Sg^oJI Web: www.salama.ae
SALAMA - Public | positive |
MANAGEMENT DISCUSSION & ANALYSIS REPORT
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2023
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FAB
First Abu Dhabi Bank
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FAB
First Abu Dhabi BankAbu Dhabi, 20 July 2023
FAB delivers record second quarter and half year 2023 results
First half 2023 net profit at AED 8.1 billion, up 65% year-on-year1
Operating income increased 44% to AED 13.6 billion
Second quarter 2023 net profit at AED 4.2 billion, up 7% sequentially and 61% year-on-year1
• Record underlying performance with first half 2023 net profit at AED 8.1 billion, implying a Return on Tangible
Equity (ROTE) at 18.6%
• Consistent performance demonstrates solid strategy execution as the regional financial institution of choice with
total assets surpassing AED 1.1 trillion, powering cross-border trade, economic growth and the transition to a low-
carbon future
• Recent rating affirmations by Moody’s (Aa3) and S&P (AA-), underline superior credit profile, unique franchise
strength and resilience through the cycles
• Double-digit revenue growth driven by sustained momentum across all business lines, improved margins, continued
strength in fee-based businesses, and higher market-related income
• Cost and risk discipline maintained with Group cost-to-income ratio at 25.2%, and healthy asset quality metrics
• Robust foundation underpinned by strong organic capital generation with June-end 2023 Group CET1 ratio at 13.6%
H1’23 Key Performance Indicators
Return on Return on Cost/Income Ratio Liquidity Coverage CET1
Tangible Equity Risk-weighted Assets Ratio
18.6% 2.8% 25.2% 159% 13.6%
Record profitability reflects improvements in underlying operating performance
across all business lines capitalising on sustained commercial momentum
Key highlights: H1’23
• Group Net Profit at AED 8.1 billion, up 65% yoy1 on an underlying basis, implying Earnings Per Share of AED 0.71
• Group operating income at AED 13.6 billion, up 44% yoy, on strong business volumes and improved margins, benefits of high
interest rates, coupled with strength in fee-based businesses and higher market-related income
• Non-interest income contribution to Group revenue increased to 34%, underlining continued strategic focus on revenue
diversification
• Cost discipline maintained amid continued investments to drive digitisation, further efficiencies and future growth; higher
income supports significant improvement in Cost/Income ratio to 25.2%
• Impairment charges (net) at AED 1.47 billion, up 42% yoy, translating into an annualised cost of risk at 58bps
1 Excluding Magnati-related capital gains in 2022
___________________
Q2/H1'23 MANAGEMENT DISCUSSION & ANALYSIS REPORT
2Key highlights: Q2’23
• Q2’23 Net Profit at AED 4.2 billion, up 7% sequentially and 61% yoy1
• Operating income at AED 6.8 billion, up 37% yoy driven by double-digit growth in interest and non-interest income
• Operating costs at AED 1.7 billion, up 3% qoq and 9% yoy on continued investments
• Impairment charges (net) at AED 676 million, 15% lower qoq
Powering economic growth and cross-border trade as a global partner for our clients
• Loans, advances and Islamic financing at AED 483 billion, up 5% year-to-date as the Group continues to gain market share in
key segments
• Customer deposits at AED 745 billion up 6% ytd with Current Account and Savings Account (CASA) balances at a new high of
AED 333 billion, reflecting strong performance in cash management, consistent growth in the client base and strengthened
propositions
• Group liquidity and funding profile remains very strong with June-end 2023 Liquidity Coverage Ratio (LCR) comfortably
above regulatory thresholds at 159%
• Prudent risk management maintained with adequate provision buffers and healthy asset quality metrics
• Solid capital generation drives further expansion in Common Equity Tier 1 (CET1) strengthening to 13.6%, up from 12.6% as
of June-end 2022
As a regional banking powerhouse, we remain focused on shaping the future, unlocking
long-term value for all stakeholders
• FAB maintains a leading position among regional banks across various MENA Investment Banking league tables in H1’23,
playing a leading role in the development of regional capital markets with the origination and execution of a number of
marquee capital market transactions
• With a global footprint spanning 20 markets across five continents, FAB’s international franchise remains a key contributor to
Group liquidity, profitability and revenue diversification, generating 20% of H1’23 Group revenue
• Continued leadership in ESG with around USD 20 billion worth of sustainable projects facilitated to date (including USD 10.7
billion in H1’23), achieving over 25% of our 2030 USD 75 billion target
• Developed market-leading solutions in key strategic areas including supply-chain finance, cash management and trading of
carbon products
• Enhanced digital capabilities and customer experience leading to over 30% increase in digital registrations and active users, a
significant increase (>160k) in new-to-bank customers year-to-date, and with further improvements in Net Promoter Score
• Shaping the future of the regional banking and payments industry through new partnerships and ecosystem builds, and the
co-investment with Brookfield Asset Management for the proposed acquisition of Network International to create a key MEA
payments platform
___________________
Q2/H1'23 MANAGEMENT DISCUSSION & ANALYSIS REPORT
3J
HANA AL ROSTAMANI
GROUP CHIEF EXECUTIVE OFFICER
We produced outstanding results in the first half of 2023, delivering a net profit of AED 8.1 billion and operating income of
AED 13.6 billion, the highest ever achieved by FAB in a half-year period.
The Group’s achievements demonstrate steady progress against our growth strategy and strengthen our position as the
financial institution of choice. Throughout the quarter and in the first half of this year, we have fulfilled our commitment to
delivering the best financial and banking products and services to our clients across our diversified franchise, while
empowering the UAE’s status as a global financial hub.
During the period, positive growth momentum was sustained across all business lines, while we continued to invest in
people, products, and technology to better serve our clients across our global footprint.
With its robust fundamentals, strong financial standing, and total assets surpassing AED 1.1 trillion (USD 312 billion), FAB
is among the largest and strongest financial institutions globally, with a combined credit rating of AA- or equivalent.
Moreover, the recent rating affirmations by Moody's and Standard & Poor's are a compelling testament to the Group’s
resilience through the cycles.
In building on over five decades of success, FAB remains fully aligned to Abu Dhabi and the UAE’s ambitions and is uniquely
positioned to deliver sustainable growth, enhance its competitive position and generate superior shareholder returns.
___________________
Q2/H1'23 MANAGEMENT DISCUSSION & ANALYSIS REPORT
4LARS KRAMER
GROUP CHIEF FINANCIAL OFFICER
FAB posted a very strong set of financial results, as evidenced by record underlying revenue and profits both in the
second quarter and in the first half of 2023. Return on Tangible Equity improved substantially to 18.6%, with solid capital
accretion lifting Group CET1 to 13.6% as of June-end 2023.
Operating income grew 44% in the first half of the year with improvements across all business lines as a result of strong
business volumes across our diversified franchise, underpinned by tailwinds from higher interest rates, and continued focus
on enhancing cross-sell. Group operating efficiency improved significantly year-on-year, with Cost-to-Income ratio at 25.2%
from 32.2% in the first half of 2022.
FAB continues to operate from a strong foundation with a unique liquidity and funding profile, and ample capacity to
continue to effectively support our clients in our home market and across our strategic footprint. In the current high interest
rate environment, we will continue to prudently manage risk, preserve a strong and resilient profile, and remain laser
focused on enhancing Group returns.
In my first few months as the Group’s CFO, I am inspired by the strength of the organisation and the opportunities that lie
ahead. Despite the persistence of macroeconomic headwinds on a global scale, FAB is very well positioned to deliver solid
results and unlock its full potential as a regional banking powerhouse.”
___________________
Q2/H1'23 MANAGEMENT DISCUSSION & ANALYSIS REPORT
5Q2/H1’23 SUMMARY FINANCIALS
Income statement - summary (AED Mn) Q2'23 Q1'23 QoQ % Q2'22 YoY % H1'23 H1’22 YoY %
Net interest income 4,490 4,427 1 3,390 32 8,918 6,525 37
Non-interest income 2,342 2,303 2 1,587 48 4,645 2,910 60
Operating income 6,833 6,730 2 4,977 37 13,563 9,435 44
Gain on Magnati stake sale
- - na 288 na - 3,094 na
(incl fair valuation of retained interest)
Total Income 6,833 6,730 2 5,265 30 13,563 12,529 8
Operating expenses (1,732) (1,688) 3 (1,589) 9 (3,419) (3,104) 10
Operating profit 5,101 5,043 1 3,677 39 10,144 9,425 8
Impairment charges, net (676) (798) (15) (582) 16 (1,474) (1,039) 42
Non-controlling interests and taxes (214) (315) (32) (189) 13 (529) (360) 47
Net Profit 4,211 3,929 7 2,906 45 8,140 8,026 1
Net Profit - excluding Magnati-related capital gains 4,211 3,929 7 2,617 61 8,140 4,932 65
Basic Earnings per Share (AED) 0.38 0.34 12 0.23 63 0.71 0.43 65
Balance sheet - summary (AED Bn) Jun'23 Mar'23 QoQ % Jun'22 YoY% Dec'22 Ytd%
Loans, advances & Islamic financing 483 473 2 459 5 460 5
Investments 211 209 1 186 14 206 3
Customer deposits 745 781 (5) 648 15 701 6
CASA (deposits) 333 316 6 291 14 297 12
Total assets 1,146 1,185 (3) 1,042 10 1,110 3
Equity (incl Tier 1 capital notes) 116 112 4 111 5 115 1
Tangible equity 85 81 5 80 7 84 2
Risk-weighted assets 582 568 2 595 (2) 572 2
QoQ YoY YoY
Key Ratios (%) Q2'23 Q1'23 Q2'22 H1'23 H1'22
(bps) (bps) (bps)
Net interest margin (NIM) 1.66 1.65 1 1.57 9 1.67 1.55 12
Cost-income ratio (ex-integration costs) 25.3 25.1 28 31.2 (591) 25.2 32.2 (700)
Cost of risk (bps)
55 62 (6) 52 3 58 47 11
(loans, advances & Islamic financing)
Non-performing loans ratio 3.7 3.8 (9) 3.6 15 3.7 3.6 15
Provision coverage 103 101 170 100 356 103 100 356
Liquidity coverage ratio (LCR) 159 151 764 135 large 159 135 large
Return on tangible equity (RoTE) 19.4 18.5 89 12.9 655 18.6 12.3 628
Return on risk-weighted assets (RoRWA) 2.9 2.8 14 1.8 116 2.8 1.7 115
CET1 ratio 13.6 13.2 44 12.6 99 13.6 12.6 99
Capital adequacy ratio 16.6 16.2 38 15.6 104 16.6 15.6 104
Notes:
• RoTE, RoRWA and Cost-income ratios for 2022 exclude Magnati-related capital gains in 2022
• Comparative figures have been reclassified where appropriate to conform to the presentation and accounting policies adopted in the consolidated financial statements
• Ratios for the quarter are annualised, where applicable, except for Basic EPS
• For further details on calculation of the ratios, please see the Quarterly Series on FAB IR website’s financial reports page
• To view key figures in USD, please refer to: bankfab.com > investor relations > reports & presentations > key quarterly figures
• Rounding differences may appear in above table
___________________
Q2/H1'23 MANAGEMENT DISCUSSION & ANALYSIS REPORT 6ECONOMIC OVERVIEW
Notwithstanding volatility in the global economic growth outlook and tightening financial conditions, GCC macroeconomic
fundamentals remained firm throughout the quarter. With regional PMIs in expansionary territory since December 2020, there
is solid evidence of economic buoyancy in non-oil sectors as economic diversification efforts continue. The weaker trend in the
oil price in the second quarter was reflective of the moves in the broader commodity complex as global growth expectations were
pared back.
In a high interest rate environment and amid global economic headwinds, the UAE and the GCC should continue to outperform
anaemic growth rates in the US and Europe. With inflation receding to 3.0% in May, UAE's real GDP is expected to moderate to
~5.0% in 2023 from an estimated high of ~7.6% in 2022.
Strong macroeconomic metrics witnessed in the region also enhance the outlook for Foreign Direct Investment (FDI) inflows,
which should continue to grow over the coming quarters. In 2022, FDI flows into the UAE rose 10% yoy to a record of USD 23
billion, attracting 60% of total FDI into the GCC, while Global FDI fell 12% in the same period.
___________________
Q2/H1'23 MANAGEMENT DISCUSSION & ANALYSIS REPORT 7INCOME STATEMENT
Operating income (AED Mn) Q2'23 Q1'23 QoQ % Q2'22 YoY % H1'23 H1'22 YoY %
Net interest income 4,490 4,427 1 3,390 32 8,918 6,525 37
Non-interest income 2,342 2,303 2 1,587 48 4,645 2,910 60
Fees & commissions, net 765 784 (2) 699 9 1,549 1,475 5
FX and investment income, net 1,530 1,452 5 828 85 2,982 1,293 131
Other non-interest income 47 67 (30) 60 (22) 114 143 (20)
Operating income 6,833 6,730 2 4,977 37 13,563 9,435 44
• Operating income for the first half ended 30 June 2023 (H1’23) was AED 13.6 billion, up 44% yoy, driven by double-digit
growth in both net interest income and non-interest income on strong business volumes, high interest rates, strength in fee-
based businesses, and a healthy markets-related performance.
• Net Interest Income (including Islamic financing income) (NII) was AED 8.9 billion in H1’23, up 37% yoy, benefitting from
strong business volumes and rate hikes. Net Interest Margin (NIM) improved by 12bps yoy to 1.67% despite a significant
increase in cash and central bank placements.
• Non-interest income grew 60% yoy reflecting gains in our investment portfolio, a healthy sales and trading performance in
Global Markets, combined with strong client activity levels across FX, derivatives and commodities. Fees & commissions,
net (F&C) grew 5% yoy on the back of strong sales momentum in Consumer Banking, higher cash management fees and
increased trade finance activity.
• Non-interest income contribution to Group revenue increased to 34% compared to 31% in the first half of 2022, underlining
continued strategic focus on revenue diversification
• Operating expenses (Opex) were up by 10% yoy to AED 3.4 billion demonstrating continued investments in talent, systems
and transformation to drive future growth, partially offset by efficiency savings. Supported by higher income, Cost-to-
income ratio improved to 25.2% in H1’23 from 32.2% in the prior year period.
• Net impairment charges were AED 1.5 billion, up 42% yoy, translating to an annualised cost of risk (CoR) at 58bps.
Sequentially, they were lower by 15% aided by recoveries.
ASSET QUALITY
• The Group continued to present strong credit quality metrics, demonstrating a high-quality portfolio and a prudent risk approach.
• Non-Performing Loans (NPL) were AED 18.4 billion as of June-end 2023, stable qoq, implying a Group NPL ratio of 3.7%.
• Provision coverage strengthened to 103% with total ECL/ provisions2 increasing to AED 19.0 billion compared to AED 18.2 billion
at December-end 2022.
2 ECL/Provisions are defined as ECL on loans, advances and Islamic financing + ECL on unfunded exposures + IFRS9 impairment reserves
___________________
Q2/H1'23 MANAGEMENT DISCUSSION & ANALYSIS REPORT 8BALANCE SHEET TRENDS
• Total assets grew 3% ytd and 10% year-on-year to AED 1.1 trillion (USD 312 billion) led by sizeable deposit inflows deployed across
loans and high-quality liquid assets.
• Loans, advances and Islamic financing at AED 483 billion, up 5% year-to-date as the Group continues to gain market share in
key segments.
• Customer deposits at AED 745 billion, are up 6% ytd and 15% yoy, underlining FAB’s unique role as an aggregator of regional
and international liquidity. Current Account and Savings Account (CASA) balances reached a new high of AED 333 billion,
reflecting strong performance in cash management, consistent growth in the client base and strengthened propositions.
• The Group’s liquidity position remained strong with June-end 2023 Liquidity Coverage Ratio (LCR) at 159%, comfortably in
excess of the Basel III minimum regulatory requirement of 100%.
• In the first half of 2023, FAB has raised USD 1.7 billion (equivalent) of senior wholesale funding at a competitive pricing,
successfully navigating volatile markets.
• The Group continued to focus on its Green and Sustainable-linked funding activity by issuing a USD 600 million public transaction
in Green format. FAB remains a regional and global leader in the Green Bond market with Green Bonds outstanding of over
USD 2.85 billion equivalent across 14 issuances and 5 different currencies.
EQUITY, CAPITAL & RETURNS
• Total shareholders’ equity (including Tier 1 capital notes) stood at AED 116 billion, up 1% ytd and 4% sequentially, driven by
earnings growth.
• Basel III Common Equity Tier 1 (CET1) ratio strengthened to 13.6% as compared to 12.6% at December-end 2022, improving
101bps on the back of strong earnings generation and ongoing optimisation initiatives, offsetting the increase in RWAs from
continued balance sheet growth. Capital adequacy and Tier 1 capital ratios were 16.6% and 15.5% as of June-end 2023, versus
15.6% and 14.5% respectively as of December-end 2022.
• Annualised Return on Tangible Equity (RoTE) improved to 18.6% from 12.3%1 the prior year comparative period, while
annualised Return on Risk-weighted Assets (RoRWA) stood at 2.8%. RoTE and RoRWA stood at 19.4% and 2.9% for Q2’23
versus 12.9% and 1.8% in Q2’22, respectively.
___________________
Q2/H1'23 MANAGEMENT DISCUSSION & ANALYSIS REPORT 9BUSINESS PERFORMANCE3
AED Mn Q2'23 Q1'23 QoQ % Q2'22 YoY % H1'23 H1'22 YoY %
H1'23
Contr%
Operating income 6,833 6,730 2 4,977 37 13,563 9,435 44 100%
Operating income by business segment
Investment Banking (IB) 2,940 2,656 11 2,025 45 5,595 3,809 47 41%
Corporate & Commercial Banking (CCB) 1,774 1,682 5 1,171 52 3,457 2,183 58 25%
Consumer Banking (CB) * 1,083 801 35 967 12 1,884 1,862 1 14%
Global Private Banking (GPB) 293 275 7 246 19 568 485 17 4%
Head Office (HO) 742 1316 (44) 568 31 2,058 1096 88 15%
Operating income by geography
UAE 5,690 5,187 10 3,996 42 10,877 7,459 46 80%
International 1,142 1,543 (26) 981 16 2,686 1,976 36 20%
* excludes Magnati-related capital gains
INVESTMENT BANKING (IB)
• IB produced high double-digit revenue growth in the second quarter and first half of 2023, across various product lines,
underscoring its status as a trusted partner for government and institutional clients across all geographies.
• H1’23 operating income grew 47% yoy to a record AED 5.6 billion, contributing 41% to FAB’s Group operating income, driven
by strong revenue growth in Global Transaction Banking on the back of consistent growth in CASA balances coupled with higher
interest rates, high levels of client activity, deal pipeline execution across client segments and products including Advisory,
Equity Capital Markets (ECM) and Debt Capital Markets (DCM), as well as continued strong sales and trading performance in
Global Markets.
• Net loans grew 2% qoq and 5% ytd, while customer deposits are up 5% ytd following seasonal outflows at the tail-end of the
second quarter. CASA balances continued to expand sequentially to reach a record high of AED 160 Billion, on the back of new
client relationships, and new cash management mandates won during the period.
CORPORATE AND COMMERCIAL BANKING (CCB)
• CCB H1’23 revenue was AED 3.5 billion, up 58% yoy, contributing 25% to the Group’s total operating income, and delivering six
quarters of consecutive growth.
• This was driven by a strong performance in Global Transaction Banking, improved margins supported by higher interest rates
and strong cash management fees on the back of new mandates. This helped partially offset lower loan-related fees reflecting
stronger loan origination in the prior year period.
• Loans are up by 2% qoq and 6% ytd driven by increase in trade finance activity with FAB continuing to play a crucial role in
supporting the needs of Corporate & Commercial clients in core markets. Customer deposits are up 2% ytd with a strong
increase in CASA of AED 9 billion driven by new customer acquisitions.
3 Integration of Bank Audi Egypt into FABMisr was completed in Q4’22. FABMisr is grouped under Head Office on an interim basis, whilst product and business segmentation are
aligned to the Group norms. Figures for prior periods have been re-stated or adjusted where appropriate for comparative purposes. Please refer to IR Quarterly Series for segmental
information on a quarterly basis since beginning of 2022.
___________________
Q2/H1'23 MANAGEMENT DISCUSSION & ANALYSIS REPORT 10FFAABBT(
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Q022//HH11''2233 MMAANNAAGGEEMMEENNTT DDIISSCCUUSSSSIIOONN && AANNAALLYYSSIISS RREEPPOORRTTABOUT FIRST ABU DHABI BANK (FAB)
FAB is the UAE’s largest bank with an international network that spans five continents, providing global relationships, expertise
and financial strength to support local, regional and international businesses seeking to do business at home and abroad. FAB
is consistently ranked one of the world’s largest, safest and most socially responsible banks. A global bank and regional banking
powerhouse, FAB is established in 20 markets from the Americas to Asia, and is known for consistently delivering results,
generating returns and creating value.
FAB is proactively shaping the future with purposeful action for sustainable growth. With total assets of AED 1.1 trillion (USD
312 billion) as of June-end 2023, FAB is rated Aa3/AA-/AA- by Moody’s, S&P and Fitch respectively - the strongest combined
ratings of any bank in the MENA region. FAB was named the UAE’s most valuable banking brand in the 2023 Brand Finance
UAE 50 and Brand Finance Banking 500 rankings. The Bank has been ranked by Global Finance as the Safest Bank in the UAE
and the Middle East since 2011, and #31 Safest Bank globally in 2022. The Banker’s Top 1000 World Banks 2022 rankings,
measured by Tier 1 capital, ranked FAB as #2 in the UAE, #5 in the Middle East and #90 across the globe. FAB is also a regional
sustainability leader (MSCI ESG rating of ‘A’), and a constituent of MSCI ESG Leaders and FTSE4Good EM indices.
For further information, visit: www.bankfab.com.
For investor-related queries, please contact FAB Investor Relations team on ir@bankfab.com
Download FAB Investor Relations app on iOS or Android
Find us on social media via
@FABConnects @FAB First Abu Dhabi Bank
___________________
Q2/H1'23 MANAGEMENT DISCUSSION & ANALYSIS REPORT 12fAal1l1l o,pu_4lt.1ig64.,.4iii d_
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0Q22//EH1 11''2233 MMAANNAAGGEEMMEENNTT DDIISSCCUUSSSSIIOONN && AANNAALLYYSSIISS RREEPPOORRTT | positive |
ABU DHABI COMMERCIAL BANK PJSC
Q3/9M 2022
EARNINGS PRESS RELEASE
AND MANAGEMENT
DISCUSSION & ANALYSIS
24 October 2022
uijl^UI uiBgjt dii
Investor Relations ADCBADCB reports record quarterly net profit of
AED 1.591 bn, up 25% YoY, and 9M’22 net profit
of AED 4.650 bn, up 22%
Abu Dhabi, 24 October 2022 – Abu Dhabi Commercial Bank PJSC (“ADCB” or the “Bank”)
today reported its financial results for the third quarter of 2022 (“Q3’22”).
Solid earnings growth as UAE economy Key highlights Q3’22
remains resilient against challenging
global backdrop
1.591
bn
Net profit (AED)
Key highlights – Q3’22 vs. Q3’21
> Net profit of AED 1.591 bn increased 25% 13.1
%
> Net interest income of AED 2.558 bn increased 17%
Return on average
> Non-interest income of AED 952 mn increased 31%
tangible equity
> Operating income of AED 3.510 bn increased 21%
> Operating profit before impairment charge of
12.60
AED 2.269 bn increased 20% %
CET1
Key highlights – 9M’22 vs. 9M’21
> Net profit of AED 4.650 bn increased 22% 124.5
%
> Net interest income of AED 7.276 bn increased 10%
Liquidity
> Non-interest income of AED 2.665 bn increased 13% coverage ratio
> Operating income of AED 9.941 bn increased 11%
> Operating profit before impairment charge of 73
bps
AED 6.355 bn increased 9%
Cost of risk
> Impairment charge of AED 1.586 bn decreased 20%
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 2Rise in loans and deposits has reinforced balance sheet strength
> Total assets of AED 486 bn increased 10% from Dec’21
> Net loans and advances to customers were AED 251 bn at September-end, up 3%
(or AED 7 bn) over Dec’21
– New corporate credit extended totalled AED 49 bn in the first nine months of the year
> Average interest earning assets of AED 399 bn were up 11% (or AED 38 bn)
over Sep’21
> Total customer deposits of AED 302 bn increased 14% (or AED 37 bn) from Dec’21.
CASA (Current and savings account) deposits were AED 160 bn at September-end, up
5% (or AED 7 bn) from year-end, and comprised 53% of total customer deposits
> Capital adequacy and CET1 ratios were 15.44% and 12.60% respectively
> Liquidity coverage ratio (LCR) of 124.5%
> Cost of risk for 9M’22 was 60 bps and 73 bps for Q3’22. NPL ratio was at 5.46%
(6.48% including POCI), while provision coverage ratio was 87.0% (140% including
collateral held)
Note: All numbers are as at 30 September 2022 unless otherwise stated
(Continued on next page)
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 3ALA’A ERAIQAT Group Chief Executive Officer
I am pleased to report that ADCB delivered a record net profit of AED 4.650 billion
in the first nine months of 2022, an increase of 22% over the prior year, which equates
to a return on average tangible equity of 13.0%.
The Bank has continued on a strong growth trajectory, with disciplined implementation
of our strategy helping us to navigate an increasingly challenging global economic
environment, marked by inflationary pressures and rising interest rates.
A number of important themes are coming through in our financial performance. These
include further strengthening and diversification of revenue streams, with double-digit
growth in both net interest income and non-interest income achieved in the nine-month
period. The Bank has recorded loan growth of 3% year to date, as lending increased to
diverse economic sectors. Meanwhile, ADCB’s strong franchise has continued to attract
significant customer deposits, which exceeded the AED 300 billion mark for the first time
at the end of September.
Across the Group, we are driving through an accelerated programme of digitisation to
ensure our customers receive the best service. This is translating into growth in our
customer base and significantly enhanced engagement. Our onboarding app continues
to set records with more than 66,000 new accounts opened digitally in the third quarter,
while the ADCB Mobile Banking app has now crossed the milestone of one million
subscribers. Al Hilal Bank’s super app has attracted over 157,000 registered users since
its launch in February, while investment in digital is also powering growth of ADCB Egypt,
which has recorded a 46% increase in nine-month net profit.
In addition to technology, our commitment to investing in our people continues to drive our
growth and the sustainability of our business. I am proud to say that our ongoing efforts
in social responsibility and talent development were recently recognised by Forbes - World’s
Best Employers Survey 2022. ADCB was amongst the 9 select companies that featured
from the Middle East, and the only UAE bank included in the global list.
This, together with our robust operating and financial performance, reaffirms ADCB’s
position as a highly resilient organisation that is well capable of navigating challenges and
achieving sustainable growth aligned with the UAE’s strategic ambitions.
1 million+
Subscription milestone reached for
ADCB Mobile Banking App
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 4DEEPAK KHULLAR Group Chief Financial Officer
ADCB produced a solid financial performance in the third quarter of 2022,
marked by broad-based growth in net profit of 25% year on year, as well as continued
strengthening of the balance sheet.
+25%
YoY increase in Q3’22 net profit
Rising interest rates coupled with the Bank’s increased lending activity underpinned a
17% year on year increase in net interest income in the third quarter. Meanwhile, ADCB
continued to focus on diversifying its revenue streams and generated 31% growth in
non-interest income in Q3 compared to the same period last year.
Our liquidity position strengthened further in Q3, with the Bank’s loan to deposit ratio
improving to 83% from 92% at year-end, while our liquidity coverage ratio remained
robust at 124.5%.
One of our key achievements this year has been the integration of a refreshed ESG
framework into the Bank’s corporate strategy. In September, ADCB took a major step by
issuing its first ever green bond, tapping strong investor demand to raise USD 500 million
to support the financing of low-carbon businesses and projects. As a result of ADCB’s
robust ESG approach, the Bank’s inaugural green bond was selected to feature in the
Bloomberg MSCI Green Bond Index.
In recognition of the significant progress ADCB has made on ESG over the last 18
months, leading ESG ratings agency Sustainalytics upgraded our ESG risk score, making
ADCB the highest-ranked diversified bank in the GCC. Moreover, Sustainalytics now ranks
ADCB among the top-10 banks globally for our approach to managing risks related to
data privacy and security.
Robust financial performance, combined with an unwavering commitment to operational
excellence and implementation of best practice in ESG are ensuring that ADCB is one of
the region’s most resilient financial institutions.
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 5Q3/9M 2022 Management discussion & analysis
Q3/9M 2022 financial highlights
Income statement highlights (AED mn) 9M’22 9M’21 ΔYoY% Q3’22 Q2’22 Q3’21 ΔQoQ% ΔYoY%
Total net interest and Islamic financing income 7,276 6,614 10 2,558 2,571 2,179 (1) 17
Non-interest income 2,665 2,369 13 952 924 726 3 31
Operating income 9,941 8,982 11 3,510 3,495 2,905 0 21
Operating expenses (3,586) (3,129) 15 (1,241) (1,227) (1,013) 1 23
Operating profit before impairment allowances 6,355 5,853 9 2,269 2,268 1,892 0 20
Impairment allowances (1,586) (1,978) (20) (636) (655) (596) (3) 7
Net profit for the period(1) 4,650 3,800 22 1,591 1,575 1,276 1 25
Balance sheet highlights (AED mn) Sep’22 Sep’21 ΔYoY% Sep’22 Jun’22 Dec’21 ΔQoQ% ΔYTD%
Total assets 486,365 432,061 13 486,365 476,093 440,278 2 10
Net loans and advances 251,202 241,912 4 251,202 242,913 244,282 3 3
Deposits from customers 302,262 255,753 18 302,262 292,262 265,052 3 14
YoY QoQ YoY
Key metrics (%) 9M’22 9M’21 Δ bps Q3’22 Q2’22 Q3’21 Δ bps Δ bps
CAR (Capital adequacy ratio – Basel III) 15.44 16.25 (81) 15.44 15.22 16.25 22 (81)
CET1 (Common equity tier 1) ratio 12.60 13.23 (63) 12.60 12.37 13.23 23 (63)
Liquidity coverage ratio (LCR) 124.5 131.7 (720) 124.5 135.3 131.7 (1,080) (720)
Loan to deposit ratio 83.1 94.6 (1,150) 83.1 83.1 94.6 0 (1,150)
CASA/total customer deposits 53 57 (400) 53 54 57 (100) (400)
Non-performing loan (NPL) ratio 5.46 5.64 (18) 5.46 5.59 5.64 (13) (18)
Provision coverage ratio(2) 87.0 88.4 (140) 87.0 89.8 88.4 (280) (140)
NPL ratio including POCI(3) 6.48 7.00 (52) 6.48 6.74 7.00 (26) (52)
Cost of risk(4) 0.60 0.79 (19) 0.73 0.78 0.74 (5) (1)
Cost to income ratio 36.1 34.8 130 35.4 35.1 34.9 30 50
Net interest margin (NIM) 2.44 2.45 (1) 2.46 2.57 2.34 (11) 12
Risk adjusted NIM 1.88 1.69 19 1.79 1.86 1.63 (7) 16
Return on average tangible equity (ROATE) 13.0 11.0 200 13.1 14.2 10.7 (110) 240
Note: Figures may not add up due to rounding differences
(1) After share in profit of associates, overseas income tax charge, and profit/loss from discontinued operations
(2) Provisions on loans and advances, including fair value adjustments
(3) POCI: Purchase or originated credit-impaired financial assets
(4) COR: Net impairment charge on loans and investments divided by net average loans & advancements and investments
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 6Key highlights
Record quarterly net profit driven by broad-based YoY growth in net
interest income, fees and trading income amid a resilient UAE economy
> Net interest income of AED 2.558 billion for Q3’22 increased 17% year on year and
was 1% lower sequentially. Net interest margin (NIM) of 2.46% in Q3’22 improved
12 basis points year on year supported by rising benchmark rates, higher interest in
suspense reversals and fair value unwinds. 9M’22 net interest income of AED 7.276 billion
was 10% higher over the prior year, while NIM was stable at 2.44%, amid a change in
asset mix towards a lower-risk credit portfolio and liquid assets. This has contributed to
a lower cost of risk and an improvement in risk-adjusted NIM to 1.88% in 9M’22, from
1.69% a year earlier.
> The Bank’s financial resilience continued to be enhanced by growth in diversified
income streams, with non-interest income of AED 952 million in Q3’22, up 31% year
on year and 3% sequentially. Non-interest income accounted for 27% of Q3’22 total
operating income, up from 25% in Q3’21.
> Net fee and commission income of AED 499 million in Q3’22 increased 14% year
on year, with card-related fees (gross) rising 17% from the previous year and loan
processing fees increasing 25% over the prior year. Net trading income of AED 281 million
in Q3’22 increased 89% year on year on account of higher FX, derivatives and trading
gains. Non-interest income for 9M’22 increased 13% to AED 2.665 billion, with card
related fees (gross) up 23% year on year.
> Cost to income ratio was 35.4% in Q3’22, compared to 35.1% in the previous quarter
and 34.9% a year earlier. In the context of growing inflationary pressures, operating
expenses in Q3’22 were up 1% sequentially and 23% year on year to AED 1.241 billion
mainly on account of higher compensation costs and broad-based investment in the
growth of the business, including in digital technology and regulatory compliance.
9M’22 cost to income ratio was 36.1% compared to 34.8% a year earlier.
> The Bank reported a record quarterly net profit of AED 1.591 billion in Q3’22, an
increase of 25% year on year and 1% sequentially, while 9M’22 net profit also reached
a record AED 4.650 billion, representing a 22% increase year on year. Return on
average tangible equity was 13.1% for the third quarter and 13.0% for the first nine
months of 2022.
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 7Resilient balance sheet underscored by steady increase in lending
and enhanced liquidity position
> The Group continues to benefit from a strong balance sheet, with total assets of
AED 486 billion as at September-end, up 10% over the year-end.
> The Bank’s net loans and advances to customers increased 3% sequentially to
AED 251 billion, as lending increased to diverse economic sectors such as energy,
trading and manufacturing.
> Investment securities of AED 108 billion at September-end increased 12% year to
date mainly on account of an increase in government bonds. The Bank was also a net
lender of AED 20.4 billion in the interbank markets as at September-end.
> Total customer deposits of AED 302 billion were 14% higher than December-end.
CASA deposits grew 5% to AED 160 billion at the end of Q3’22, while time deposits
increased 27% to AED 142 billion. CASA deposits were 53% of total customer
deposits at September-end.
> The average loan balance was AED 243 billion in 9M’22, and the average deposit
balance was AED 275 billion.
> Total shareholders’ equity stood at AED 59 billion as at 30 September 2022.
> The Bank remains well-capitalised with capital adequacy (Basel III) and CET1 ratios
of 15.44% and 12.60% respectively as at 30 September 2022, versus 15.97% and
12.94% at December-end.
> ADCB maintained a robust liquidity position during 9M’22, resulting in a liquidity
coverage ratio of 124.5%, a liquidity ratio of 33.0% and a loan to deposit ratio
of 83.1%.
Significant improvement in 9M’22 cost of risk, underpinned by lower
impairment charges
> Cost of risk in 9M’22 improved to 60 bps from 79 bps the previous year, while
quarterly cost of risk remained steady year on year at 73 bps, in line with medium-term
guidance of 80 bps.
> Impairment charges were AED 636 million in Q3’22, an improvement of 3%
sequentially, and were AED 1.586 bn in 9M’22, which was 20% lower year on year.
The NPL ratio improved to 5.46% from 5.59% at June-end, and including net POCI
(purchase or originated credit impaired) assets, the NPL ratio was 6.48%.
> The provision coverage ratio was 87% compared to 89.8% in the previous quarter,
while including collateral held, it was 140% as at 30 September 2022 compared to
147% at June-end.
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 8New quarterly record of 66,000+ accounts opened digitally through
onboarding app, while Mobile Banking app crossed one million
subscriber milestone
> Subscriptions to the Bank’s Mobile Banking app increased 8% sequentially and 29%
year on year to more than 1 million customers at September-end.
> ADCB continued to see a high volume of new account openings via its onboarding app,
with a record 66,000+ accounts opened digitally in Q3’22, representing 75% of all
new-to-bank retail customers during the period.
> In Q3’22, 96% of all retail transactions were conducted electronically, and digital fund
transfers were up 65% year on year. Over 93% of IPO subscriptions were received
through digital channels in Q3’22.
> The Bank maintained its focus on introducing digital enhancements for customers, with
12 digital releases across its Consumer and Wholesale Banking businesses in Q3’22,
taking the total to 126 since the start of its digital transformation programme. 85% of
retail customers are now registered to digital channels.
> The Wholesale Banking Group introduced credit cards to the ProCash Mobile app, with
users able to make payments, settle outstanding amounts and get monthly statements.
Further enhancements were also made to payments to improve user experience and
provide greater detail on real time tracking transactions.
> Transactions on the ProCash and ProTrade platforms accounted for 96% of all cash
management transactions and 70% of trade finance transactions, respectively.
Inaugural green bond supports financing of low-carbon initiatives for
a net-zero economy
> In recognition of the significant progress the Bank has made on ESG over the last 18
months, leading ESG ratings agency Sustainalytics upgraded ADCB’s ESG risk score,
making ADCB the highest-ranked diversified bank in the GCC and among the top 10
banks globally for its approach to managing risks related to data privacy and security.
> In the third quarter, ADCB adopted a new Green Bond Framework and the Bank
issued its first ever green bond to support the financing of low-carbon businesses
and projects. The USD 500 million, 5-year bond was 3.8 times oversubscribed after
attracting a range of local, regional, and international investors. As a result of ADCB’s
robust ESG approach, the bond was subsequently selected to feature in the Bloomberg
MSCI Green Bond Index.
> ADCB is actively introducing new products to help clients transition to a low carbon
economy. In Q3’22, the Bank provided financing to a global commodities trader for the
purchase of carbon credits, adding to its growing sustainable finance offering, which
already includes green bonds, renewable energy project finance and sustainability-
linked loans.
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 9ADCB Egypt recorded solid performance driven by strong growth
in loans and deposits
> ADCB Egypt continued to deliver solid growth across the Consumer and Wholesale
Banking businesses, driven by its digital transformation programme. Subscribers to
ADCB Egypt’s digital banking platforms increased by 111% year on year in Q3’22, with
active digital customers up 94%.
– Net profit(1) in 9M’22 increased 46% year on year to EGP 499 million
– Net loans increased 35% year to date to EGP 29 billion as at 30 September 2022
– Total deposits increased 60% year to date to EGP 65 billion as at 30 September 2022
Al Hilal Bank continues to attract a broad base of customers from
across the UAE through its disruptive super app
> Al Hilal Bank is making strong progress towards becoming a fully digital Islamic bank.
To date, more than 157,000 new users have registered to the Al Hilal super app
since its launch in February. The app provides a wide range of financial and lifestyle
products and services on a single platform, including a virtual marketplace and financial
education features for children.
> Digital first approach has enabled Al Hilal Bank to broaden its demographic and
geographic reach, with residents of Dubai and the Northern Emirates accounting for
28% and 24% of registered users, respectively.
> Al Hilal Bank’s broad product offering, along with its engaging, family-centric and
gamified financial education tools, have seen strong levels of daily engagement, with
6,700 transactions conducted on a daily basis.
> The new platform builds on a track record of increasing digital engagement, with active
users of Al Hilal’s digital platforms up 26% sequentially.
> The Bank’s strategy is aligned with the UAE’s Digital Government Strategy 2025,
enabling it to build a data-driven fully digital bank.
(1) Based on IFRS
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 10ADCB – 9M 2022 Awards and recognition
ABF WHOLESALE BANKING MENA BANKING EXCELLENCE INTERNATIONAL BUSINESS
AWARDS 2022 AWARDS 2022 MAGAZINE 2022
UAE Domestic Trade Finance Excellence in Employee Best Trade Bank in MENA
Bank of the Year Engagement
GLOBAL FINANCE ARC AWARDS FORBES
2022 2022
ADCB ranked top GCC
Best Trade Finance Provider Gold Award Best International bank in Forbes 2022 survey
in the UAE Annual Report “World’s Best Employers”
ADCB Egypt – 9M 2022 Awards and recognition
GLOBAL FINANCE WORLD INTERNATIONAL BUSINESS
2022 BUSINESS OUTLOOK MAGAZINE
Best User Experience Best New Bank Best Digital Banking Services
(UX) Design Egypt 2022 Provider Egypt 2022
Fastest Growing Retail Bank Best Mobile Banking
Egypt 2022 Egypt 2022
INTERNATIONAL FINANCE
MAGAZINE
Fastest Growing Corporate Best Online Banking
Bank Egypt 2022 Egypt 2022
Best Financial Inclusion
Package Towards People
Fastest Growing Bank Best Financial Inclusion
With Disabilities Egypt 2022
Egypt 2022 Initiative Egypt 2022
Most Innovative New Digital
Bank Egypt 2022
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 11Further information on ADCB can be found at
adcb.com/ir or by contacting:
Investor Relations Abu Dhabi Commercial Bank
Denise Caouki Sheikh Zayed Bin Sultan Street
Email: ir@adcb.com PO Box: 939, Abu Dhabi
adcb.com
Corporate Communications
Majdi Abd El Muhdi
Email: majdi.a@adcb.com
This document has been prepared by Abu Dhabi Commercial Bank PJSC (“ADCB”) for
information purposes only. The information, statements and opinions contained in this
document do not constitute a public offer under any applicable legislation or an offer to
sell or solicitation of an offer to buy any securities or financial instruments or any advice or
recommendation with respect to such securities or other financial instruments. This document
is not intended for distribution in any jurisdiction in which such distribution would be contrary to
local law or reputation.
The material contained in this press release is intended to be general background information
on ADCB and its activities and does not purport to be complete. It may include information
derived from publicly available sources that have not been independently verified. No
representation or warranty is made as to the accuracy, completeness or reliability of the
information. It is not intended that this document be relied upon as advice to investors or
potential investors, who should consider seeking independent professional advice depending on
their specific investment objectives, financial situation or particular needs.
This document may contain certain forward-looking statements with respect to certain of
ADCB’s plans and its current goals and expectations relating to future financial conditions,
performance and results. These statements relate to ADCB’s current view with respect
to future events and are subject to change, certain risks, uncertainties and assumptions
which are, in many instances, beyond ADCB’s control and have been made based upon
management’s expectations and beliefs concerning future developments and their potential
effect upon ADCB.
By their nature, these forward-looking statements involve risk and uncertainty because they
relate to future events and circumstances which are beyond ADCB’s control, including, among
others, the UAE domestic and global economic and business conditions, market related
risks such as fluctuations in interest rates and exchange rates, the policies and actions of
regulatory and Governmental authorities, the impact of competition, the timing impact and other
uncertainties of future acquisition or combinations within relevant industries.
As a result, ADCB’s actual future condition, performance and results may differ materially from
the plans, goals and expectations set out in ADCB’s forward-looking statements and persons
reading this document should not place reliance on forward-looking statements. Such forward-
looking statements are made only as at the date on which such statements are made and
ADCB does not undertake to update forward-looking statements contained in this document or
any other forward-looking statement it may make.
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 12 | neutral |
M I M.I
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MI MI
_II JD
ID D EEYYAAAAR R
Press Release
Deyaar reports increase in Q1 2023 profits, exceeding AED 56
million
Dubai, UAE 9 May 2023: Deyaar Development PJSC ("Deyaar"), one of the leading real estate
developers and service providers in Dubai, has reported increase in its profits in Q1 2023
compared to the profits of the same period in 2022. This was announced in a filing to the
Dubai Financial Market, where Deyaar shares are traded.
Deyaar's financial performance in Q1 2023 reflected impressive results, in a clear
demonstration of the company's continued growth and financial stability. With profits of AED
56.4 million in Q1 2023, Deyaar achieved a remarkable 125% increase from the same period
in 2022, where profit stood at AED 25 million. In addition, Q1 2023 profits enjoyed a 37% over
Q4 2022’s reported profits of AED 41 million.
Based on its strategic plan, Deyaar is expected to further grow its revenue in next few years
and to achieve this the company intends to focus on monetising and developing new projects
on remaining plots, assess potential joint ventures and replenish the land bank with new
diversified land. It will also have a phased development strategy focused on availability,
profitability and diversification.
Saeed Al Qatami, CEO of Deyaar, said: "Our Q1 results are a testament to Deyaar's progress,
our sound business strategies and prudent financial practices. It shows the company is well-
positioned to achieve continued growth and success well into the future. The remarkable
profit follows a successful financial year and includes achieving unprecedented success in
selling our recent project launches, such as Regalia at Business Bay, Tria in Dubai Silicon Oasis
and Mar Casa at Dubai Maritime City. Deyaar has significantly increased the frequency of its
project launches and today the company has reached a pivotal turning point in its journey
and looks towards a brighter future for the benefit of all its customers and investors."
Moreover, the company's revenue has also grown significantly over the past few months due
to impressive construction progress at Regalia in Business Bay and the exceptional
performance of its developments such as, Noor and Mesk, in Dubai Production City.
The increase in profit and growth has driven major changes to the business, with an increased
focus on prioritizing digital transformation initiatives to improve and modernize its business
operations, while leveraging digital technologies to enhance efficiency, automate processes,
and deliver the best service to customers.
Listed on the Dubai Financial Market and majority-owned by Dubai Islamic Bank
(DIB), Deyaar is one of Dubai’s leading developers, with real estate ventures spanning
key growth corridors and prime locations within the emirate. Over the years, Deyaarhas delivered an extensive portfolio of commercial and residential properties, all
offering the highest levels of service and quality.
-ENDS-
About Deyaar
Deyaar Development PJSC is a leading real-estate developer and real-estate services company,
headquartered in Dubai. Since its establishment in 2002, the company has registered exponential
growth to become an industry leader in the region, with a share capital of AED4.38 billion.
Deyaar is well-positioned to play a pivotal role in the development of the region's property landscape.
The company’s in-depth market intelligence, world-class services, and unrivalled property
management support for communities across diverse portfolios have firmly consolidated its pioneering
status in the region’s real estate landscape.
Combining excellence with a vision to create natural living environments while placing customers at
the core of its strategies, Deyaar serves as a one-stop real estate solutions provider. Under this profile,
its scope includes the delivery of end-to-end property development and property management
services across the UAE.
Deyaar provides facility management services for its portfolio of commercial and residential units. The
company spearheads an association management team to ensure the wellbeing of Deyaar’s
homeowners as a key priority. Deyaar complies with the escrow legislation and relevant property laws
in the UAE, and it is registered with the Real Estate Regulatory Authority under reference number
15/07.
Media Contact:
Gambit Communications
Showkat Rather
Senior Account Manager
Tel. + 971 55 1378653
Showkat@gambit.ae | positive |
M anagement
Discussion & Analysis
First 9 months of 2022 Financial Results
Abu Dhabi, UAE – 25 October 2022
Confide ntialADIB reports highest quarterly net profit for Q3
2022, with 105% net profit growth to cross AED 1
billion mark.
Net profit growth of 53% for the first 9 months of 2022 to
AED 2.45 billion
ADIB recorded its best ever quarter driven by improved revenues and strong asset growth
First 9 months of 2022 compared to the first 9 months of 2021
4.5bn 1.7bn 352mn 2.45bn
Reven ues Expe nses Impair ments Net In come
+10% -2% -53% +53%
147bn 103bn 119bn 19.6%
Total A ssets Gross Custom er Financing Depo sits RO E
+10% +16% +11% +6.6 ppts
ADIB Q3 2022 net profit crosses the AED 1 billion mark registering a 105% growth versus the same period last year
where it was AED 493 million in Q3 2021
53% y-o-y increase in Net Profit to AED 2.45 billion for the first 9 months of 2022 versus AED 1.60 billion in the same
period last year
ROE improving 6.6 percentage points to reach 19.6% versus 13.0% in the same period last year
Revenue for the first 9 months up 10% y-o-y to AED 4.5 billion versus AED 4.09 billion same period last year
Funded income for the first 9 months grew by 10% to AED 2.8 billion verses AED 2.5 billion last year driven by higher
volumes
Fees and commissions for the first 9 months grew by 22% to reach AED 839 million versus AED 689 million in the same
period last year
Cost to income ratio improved 4.6 percentage points to 37.6% versus 42.2% driven by revenue growth and effective
cost control strategy
Improved economic outlook drives 53% impairment decline, despite improved coverage on non-performing financing
Steady balance sheet growth to AED 147 billion with 16% customer financing growth to reach AED 103 billion versus
AED 89 billion in Q3 2021
Deposits grew 11% y-o-y to reach AED 119 billion versus AED 107 billion last year
Robust capital position with a common equity tier 1 ratio of 12.8%
MANAGEMENT DISCUSSION & ANALYSIS REPORT – YTD 2022 2Abu Dhabi Islamic Bank reported the highest quarterly net profit with AED 1 billion in Q3 2022 where it was AED 493
million in Q3 2021 marking a 105% growth versus the same period last year. The bank registered a year-on-year growth
in Net Profit of 53% for the first 9 months of 2022 to AED 2.45 billion from AED 1.6 billion in the corresponding period of
2021, reflecting strong top-line growth across all key businesses. Revenue for first 9 months of 2022 improved 10% to
AED 4,516 million compared to AED 4,093 million last year. This was driven by 22% increase in fees and commissions and
10% growth in funded income to AED 2,802 million, achieved from the growth in customer financing and higher rates.
Cost to income ratio was managed down to cross the 40% mark for the first 9 months with an improvement of 4.6
percentage points to 37.6%. This was helped by higher revenues and cost inititaives driven by the ongoing investment in
digital initiatives that brought expenses down by 2% year-on-year to AED 1,699 million
Impairments declined 53% year-on-year to AED 352 million for the first 9 months of 2022, reflecting an overall
improvement in economic conditions. This reduction was achieved while improving the provision coverage of non-
performing financing (including collaterals) by 4.1 percentage points to 122.4%.
Total assets increased 10% year-on-year to reach AED 147 billion, driven by 16% growth in gross financing and 42% in
investments. Customer deposits rose 11% year-on-year to AED 119 billion from strong Current and Savings Accounts
(CASA). ADIB maintained a robust capital position with a Common Equity Tier 1 ratio of 12.8% and a total Capital Adequacy
Ratio of 17.9%. The bank’s liquidity position was healthy and comfortably within regulatory requirements, with the
advances to stable funding ratio at 86.1% and the eligible liquid asset ratio at 15.9%.
MANAGEMENT DISCUSSION & ANALYSIS REPORT – YTD 2022 3“
H.E JAWAAN AWAIDAH AL KHAILI
CHAIRMAN
“ADIB is pleased to report its best quarterly results ever. We were able to cross the AED 1 billion mark in net profit for a
quarter underpinned by strong business momentum. Our initiatives to diversify our income, expand into new segments
while managing asset quality and improving our costs served us well to deliver a record ROE of 19.6%.
“We were particulary pleased this quarter to be recognsied as the safest islamic bank globally, a testament to our solid
fundamentals and financial strengths. Our capital ratios and liquidity metrics are robust and we operate in a healthy
economic environment backed by a strong and supportive government.
“These strong results, along with our positive outlook for the local economy, will enable us to accelerate our investments
supporting our next stage of growth. As we look ahead we will continue to work towards creating value for all our
stakeholders as we aim to become the world’s most innovative Islamic bank. We are confident in the economic outlook
for the UAE and the region, and will look to accelerate our progress for both customers and shareholders alike.”
“
NASSER AL AWADHI
GROUP CHIEF EXECUTIVE OFFICER
“The record results for the quarter once again attest to the strength of our business and the meaningful progress we are
making in transforming our business and capturing new opportunities. Our transformed business, nimble execution of our
strategic prioriries and balance sheet strengths have put us in good stead to deliver one of the highest return on equity in
the market of 19.6%. We had broad—based customer finance growth of 16% In the first 9 months of this year, growing
both retail and corporate book, driving funded income growth of 10%. This demonstrates our leading origination
capabilities and our continued focus to grow our market share through specialized offerings and innovative solutions. The
positive drivers we saw in business over the last few quarters converted into a solid fee income growth of 22%. We
remained disciplined on costs wih our cost to income ratio improving 4.6 percentage points to 37.6% crossing the 40%
mark over 9 months for the first time in our history.”
“Looking ahead and while the global economic outlook remains uncertain marked by inflationary pressures, we are
confident that our strong balance sheet, capital levels and liquidity combined wih our innovative and agile spirit will
position us well to capture new opportunities and continue to support our customers, businesses and the UAE economy
to thrive. We will continue to identify new growth areas and invest our resources to deliver sustainable shareholder returns
and puruse our growth and transformation plans.”
MANAGEMENT DISCUSSION & ANALYSIS REPORT – YTD 2022 4“
MOHAMED ABDELBARY
GROUP CHIEF FINANCIAL OFFICER
“ADIB’s net profit for Q3 2022 more than doubled, increasing 105% compared to the same period last year. It was the
bank’s best ever quarter where ethe quarterly earnings crossed the AED 1 billion mark. This was due to a strong business
momentum wth a record perfomance in customer finance, deposits and fee income.
“This performance was driven by a 10% increase in revenues, led by a strong perfomance in our retail and corporate
business. This was helped by strong volumes, early benefits from raising rates and from customers choosing to access more
products and services from ADIB. Our continued investment in digital customer transformation is paying off as our cost-
to- income ratio further improved by 4.6 percentage points to 37.6%, and this means the strength we have today will allow
us to continue to invest in being at the forefront of innovation.
“Our excellent performance this 9 month period is a reflection of our balanced approach to portfolio diversification and
operational efficiency and our resultant high asset quality and credit administration practices. Our net profit margin
improved and we maintained a strong liquidity, funding and capital positions. As we look towards the future, we can expect
to maintain our growth trajectory and build upon our previous success.”
MANAGEMENT DISCUSSION & ANALYSIS REPORT – YTD 2022 5Group Financial Review
Income statement
AED (mn) Q3 2022 Q3 2021 Δ% YTD 2022 YTD 2021 Δ%
Gross revenue from funds 1,279 1,034 +24% 3,120 2,792 +12%
Distribution to depositors (147) (76) +93% (318) (248) +29%
Net revenue from funds 1,132 957 +18% 2,802 2,545 +10%
Investment income 181 195 -7% 602 667 -10%
Fees, commissions income, net 260 228 +14% 839 689 +22%
Foreign exchange income, net 103 67 +55% 268 183 +46%
Other income 2 2 -1% 5 8 -36%
Non-funded income 546 491 +11% 1,715 1,548 +11%
Total operating income 1,678 1,448 +16% 4,516 4,093 +10%
Total operating expenses before impairment
(539) (567) -5% (1,699) (1,729) -2%
charge
Provision for impairment (125) (384) -67% (352) (751) -53%
Profit before zakat and income tax 1,014 497 +104% 2,465 1,613 +53%
Zakat and tax (4) (4) +0.5% (13) (11) +20%
Profit after zakat and tax 1,010 493 +105% 2,452 1,602 +53%
Non-controllable interest (0.5) (0.3) +58% (1.3) (0.7) +92%
Profit attributable to equity holders of the bank 1,010 493 +105% 2,450 1,601 +53%
EPS 0.25 0.11 +131% 0.61 0.38 +62%
Net profit margin – YTD 3.35% 3.12% +23bps
Cost to income ratio 32.1% 39.2% -7.0ppts 37.6% 42.2% -4.6ppts
Cost of risk – YTD 0.38% 1.10% -72bps
ROAE – YTD 19.6% 13.0% +6.6ppts
ROAA – YTD 2.33% 1.64% +69bps
• Group net profit grew 53% in the first 9 months of 2022 to AED 2.45 billion compared to AED 1.6 billion in the
corresponding period in 2021. This was driven by solid growth in revenues, improved operating efficiency and
lower overall impairments compared to the previous year.
• Revenues: The rebound in the UAE economic activity and an improvement in business momentum lifted revenues
by 10% in the first 9 months of 2022 to AED 4,516 million versus AED 4,093 million in the corresponding period of
2021.
• Funded income rose 10% year-on-year to reach AED 2,802 million with 6% growth in average earning assets
thereby increasing the net profit margin to 3.35% as compared to 3.12% in the comparative period of 2021, even
though there was an increase in the cost of funding of 6 basis points year-on-year. ADIB preserves one of the
highest margins in the market, supported by one of the lowest costs of funds in the market.
• Non-funded income increased by 11% year-on-year to AED 1,715 million for the first 9 months of 2022, resulting
from 22% growth in fees and commission income, and a 46% improvement in foreign exchange income.
MANAGEMENT DISCUSSION & ANALYSIS REPORT – YTD 2022 6• Overall revenues were supported by growth in new customers of approximately 93,000 during the first 9 months
of 2022, evidencing ADIB’s emphasis on long-term customer relationships and the delivery of superior customer
service.
• Successful implementation of cost initiatives and the efficacy of the digital strategy resulted in a 1.7%
improvement in operating expenses to AED 1,699 million compared to first 9 months of 2021, leading to an
improvement in the cost-to-income ratio of 4.6 percentage points year-on-year to 37.6%.
• The net impairment charge for the year decreased by 53% year-on-year to AED 352 million, lowering the cost of
risk by 72 basis points year-on-year to 0.38%. This reflected improvements in the micro-and macro-economic
environment and was achieved while improving the provision coverage of non-performing financing (including
collaterals) by 4.1 percentage points to 122.4%.
Balance Sheet
AED (mn) Q3 2022 Q3 2021 Δ%
Cash and balances with central banks 18,233 21,110 -14%
Due from financial institutions 2,170 4,687 -54%
Customer financing, net 98,240 84,419 +16%
Investments 19,072 13,420 +42%
Investment in associates 1,722 1,424 +21%
Investment and development properties 1,992 2,006 -1%
Other assets 5,780 6,315 -8%
Total assets 147,209 133,382 +10%
Due to financial institutions 3,198 2,920 +10%
Depositors’ accounts 118,823 107,005 +11%
Other liabilities 4,014 3,529 +14%
Total liabilities 126,036 113,454 +11%
Share capital 3,632 3,632 -
Retained earnings 7,594 6,233 +22%
Other reserves 5,181 5,298 -2%
Equity attributable to shareholders of the bank 16,407 15,163 +6%
Tier 1 sukuk 4,754 4,754 -
Non - controllable interest 12 11 +6%
Equity attributable to equity holders of the bank 21,173 19,928 +6%
Customer financing, gross 103,202 89,124 +16%
Non-performing financing 8,597 8,025 +7%
NPA ratio 8.3% 9.0% -67bps
NPA coverage ratio 67.8% 65.7% +2.2ppts
NPA coverage ratio with collaterals 122.4% 118.2% +4.1ppts
Risk weighted assets 119,432 102,951 +16%
Core Equity Tier 1 Ratio 12.81% 13.77% -96bps
Tier 1 Ratio 16.79% 18.38% -1.6ppts
MANAGEMENT DISCUSSION & ANALYSIS REPORT – YTD 2022 7Capital Adequacy Ratio 17.90% 19.47% -1.6ppts
Financing to deposit ratio 82.7% 78.9% +3.8ppts
Advances to stable fund ratio (AFR) 86.1% 82.4% +3.8ppts
Eligible Liquid Asset Ratio (ELAR) 15.9% 19.9% -4.0ppts
• Total assets reached AED 147.2 billion as at 30 September 2022, an increase of 10% from 30 September 2021,
driven by a growth in net financing and growth of the investment portfolio.
• Gross customer financing increased 16% year-on-year to AED 103.2 billion from 30% growth in wholesale
financing across Government and public sector enterprises, corporates and financial institutions while retail
financing portfolios grew by 10%.
• The bank’s investment portfolio increased 42% at 30 September 2022 to AED 19.1 billion
• Customer deposits amounted to AED 119 billion as of 30 September 2022, up 11% from 30 September 2021 as
CASA deposits increased by 8% to AED 89 billion comprising 74.0% of total customer deposits.
• Non-performing financing totaled AED 8.6 billion as of 30th September 2022 compared to AED 8.0 billion as of
30th September 2021 while the non-performing financing ratio improved to 8.3% versus 9.0% as at 30 September
2021.
• ADIB continued to maintain a healthy liquidity position with an advances to stable funding ratio at 86.1%
compared with 82.4% at 30 September 2021, while the eligible liquid asset ratio was 15.9% as at 30 September
2022 versus 19.9% at 30 September 2021.
• The bank further maintained a robust capital position with the common equity tier 1 ratio at 12.8%, a tier 1 ratio
of 16.8% and capital adequacy ratio of 17.9% as at 30 September 2022, comfortably exceeding regulatory
requirements prescribed by the UAE Central Bank.
MANAGEMENT DISCUSSION & ANALYSIS REPORT – YTD 2022 8Segmental Performance Review
Retail Banking Group
Income statement
AED (mn) YTD 2022 YTD 2021 Δ%
Funded income 2,126 1,862 +14%
Non-funded income 427 423 +1%
Total operating income 2,553 2,285 +12%
Operating expenses excluding impairments (1,355) (1,365) -1%
Impairment charge (65) (34) +90%
Profit before tax and zakat 1,133 886 +28%
Tax and Zakat - - -
Profit after tax and zakat 1,133 886 +28%
Cost income ratio 53.1% 59.7% -6.7ppts
Cost of risk 0.16% 0.09% +7bps
Balance Sheet
AED (mn) Q3 2022 Q3 2021 Δ%
Financing, gross 52,721 48,071 +10%
Depositors’ accounts 81,178 74,337 +9%
• ADIB’s Retail Banking Group (‘Retail Banking’), is the leading bank for UAE nationals and a critical growth engine
for ADIB. Retail Banking delivered a strong performance, generating AED 1,133 million of net profit in the first 9
months of 2022, a 28% increase over the same period last year. In addition, Retail Banking continued
strengthening their customer propositions and improving channel productivity, resulting in improved sales
momentum for cards and 10% year-on-year growth in gross financing to AED 52.7 billion as of 30 September
2022.
• Based on encouraging financing growth, revenue for Retail Banking increased 12% year-on-year to AED 2,553
million, on the back of higher fees and commissions on cards and wealth management products
• Operating expenses in the first 9 months of 2022 declined 1% year-on-year, reflecting cost optimisation
initiatives, and continued focus on process simplification and automation to improve efficiency and deliver better
customer experiences.
• The strategic focus on delivering an excellent customer experience enabled Retail Banking to expand its customer
base by approximately 93,000 customers in the first 9 months of 2022.
• Deposits also grew by 9% year-on-year, outperforming the market on deposit growth. This is a testament to the
Bank’s strong UAE national and Emirati-focused strategy, which is at the core of the Retail Banking business. This
was driven by CASA growth of 8%.
• Constomer financing grew 10% to AED 52.7 billion led by growth in personal finance and home finance
• New to bank cards acquisition grew 60% from Q3 2021 driven by improved sales process while card spends grew
23%
• On digital, the bank continued to introduce industry-leading digital capabilities, redesign the client experience,
and enabled its customers to bank anytime, anywhere, on their preferred channels. The provision of the new
MANAGEMENT DISCUSSION & ANALYSIS REPORT – YTD 2022 9digital remote sales platform allowed customers to interact remotely, driving significant sales across consumer
finance products. Over 45% of account opening are done through digital channels.
• ADIB was a leader among UAE banks in facilitating participation for our customers in the IPOs of DEWA, Borouge,
and Salik.
Wholesale Banking Group
Income statement
AED (mn) YTD 2022 YTD 2021 Δ%
Funded income 534 446 +20%
Non-funded income 245 184 +33%
Total operating income 779 630 +24%
Operating expenses excluding impairments (205) (206) -0.5%
Impairment charge (153) (500) -69%
Profit before tax and zakat 421 (76) +651%
Tax and Zakat (9) (7) +19%
Profit after tax and zakat 412 (84) +593%
Cost income ratio 26.3% 32.7% -6.4ppts
Cost of risk 0.5% 2.0% -1.5ppts
Balance Sheet
AED (mn) Q3 2022 Q3 2021 Δ%
Financing, gross 43,775 33,559 +30%
Depositors’ accounts 24,296 20,855 +17%
• The Wholesale Banking Group (‘WBG’) saw an increase in net profit of 593% driven by higher volume and the
benefit of rising rates.
• Total operating income grew 24% year- on year reflecting an economic rebound and improvements in non funded
income.
• Gross customer financing grew by 30% year-on-year to AED 43.8 billion, as a result of a rebound in economic
activity and market sentiment, as well as strong momentum in deal execution. This was driven by demand from
existing large corporates as well as new to bank clients.
• The Global Transaction Banking (GTB) team continued to make progress on its transformation journey, offering
digitally enabled and innovative solutions to clients.
• Revenues for WBG for the first 9 months of 2022 increased 24% year-on-year to AED 779 million.
• WBG’s impairment charge for the period amounted to AED 153 million, a 69% decrease relative to the
corresponding period of 2021.
MANAGEMENT DISCUSSION & ANALYSIS REPORT – YTD 2022 10Treasury
Income statement
AED (mn) YTD 2022 YTD 2021 Δ%
Funded income (193) (96) +100%
Non-funded income 649 694 -7%
Total operating income 456 598 -24%
Operating expenses excluding impairments (30) (30) -0.1%
Impairment charge (20) (0.2) +12,949%
Profit before tax and zakat 406 567 -29%
Tax and Zakat - - -
Profit after tax and zakat 406 567 -29%
Cost income ratio 6.6% 5.1% +1.6ppts
Investment Yield 2.5% 5.0% -2.5ppts
Balance Sheet
AED (mn) Q3 2022 Q3 2021 Δ%
Investments 19,072 13,420 +42%
Depositors’ accounts 4,441 3,106 +43%
ADIB’s Treasury department saw a decline of 29% in net profit to AED 406 million year-on-year due to a reduction in the
revenue for the period by 24% year-on-year to AED 456 million. This was primarily due to adverse market conditions in
2022, partially offset by fee income generation from customers’ activities.
MANAGEMENT DISCUSSION & ANALYSIS REPORT – YTD 2022 11Strategy and Outlook
Strategy
The global banking industry is currently experiencing an unprecedented era of transformation and opportunity. The global
drive towards digitalization and Fintech disintermediation is well underway, leading to both increased regulatory
liberalization and pressures. At the same time, the Covid pandemic has accelerated the adoption of digital products and
services and structurally altered working patterns and economic fundamentals, leading to a lower rate and growth
environment. Finally, sustainability has become a central theme for consumers, communities, employees and
Governments globally and matters of diversity, climate change, staff wellbeing and governance, amongst others, are now
critical success factors for corporations and their stakeholders.
Against this backdrop, ADIB conducted its 5-year strategic review in 2021, which defined the bank’s renewed purpose of
becoming a lifelong partner for our clients, community and colleagues. Furthermore, ADIB’s vision revamped to be the
world’s most innovative Islamic bank.
The bank’s 2025 strategy is built upon 4 strategic pillars:
Continuous Innovation of new Sharia-compliant banking products that will allow the bank to support customers across
the retail, SME and corporate landscape remains a key tenant of the Bank’s strategy. This will be supported by the training
and development of Islamic banking experts. Additionally, the bank will re-engineer the delivery of products and services
and plans to launch innovative digital ventures and new business models. In line with this strategy, the bank launched
various products that enabled a growth in market share such as yusr for salary advance, new finance plan to support SME,
and easy instalment plan.
ADIB’s strategy is Segment Focused, building on its existing strength in the Emirati retail segment while attracting and
developing new business segments where the bank can grow profitably. In this respect, a core focus area includes
developing an ecosystem to support Emirati customers across all financial stages in their lives and expanding customer
propositions and product offerings across large, medium and small corporations. The bank was able to deliver a double-
digit growth in customer financing with all core businesses showing improvements.
Digital Excellence remains at the heart of the 2025 strategy and the bank strives to become a digital-first financial
institution. ADIB aims to elevate customer convenience through its digital platforms and become a data-driven
organization by leveraging advanced analytics and artificial intelligence. At the same time, ADIB will build a modern
technology foundation and new digital tools and capabilities for staff to enable seamless, digital processing and front-line
delivery, while creating a future-proof workforce.
Finally, ADIB is planning to embed sustainability and ESG frameworks into the existing Islamic banking DNA to ensure a
Sustainable Future for the bank, its employees, and the customers and wider community it serves. Under this pillar, ADIB
will create a more comprehensive ESG risk framework and policies, develop a Group sustainability strategy and roadmap,
and foster existing talents in the organization.
The central objective underpinning the revamped strategy is a commitment to driving value for our stakeholders and the
bank’s 2025 strategic targets include reaching a return on equity of 20%, doubling net profit, achieving a cost-to-income
ratio below 36%, being ranked first in customer experience measured with the Net Promotor Scores (NPS) and driving
digitalization to more than 85% Straight-Through-Processing (STP).
Digital and Innovation
ADIB’s focus on continuous innovation and digital excellence are core tenents of the revamped 2025 strategy.
The number of digitally active customers has increased steadily over the past year. Currently, the bank has 65% of its
customers digitally active.
In addition, ADIB continued to strengthen its digital banking capabilities over the period, with a host of new initiatives
driving improved adoption and usage rates of its digital services. The bank announced the launch of a new Wealth
MANAGEMENT DISCUSSION & ANALYSIS REPORT – YTD 2022 12Management digital platform. ADIB also continues to provide customers with convenient remote account opening services
through a government-linked facial recognition system.
Additional highlights of ADIB’s progress on digitalization and innovation include the following:
• ADIB’s mobile app was top-ranked in the UAE App store.
• ADIB had 70% digital usage
• 48% of new to bank customers open their account using the app
• Digital finance applications increased with 37% of personal finance applications taking place digitally
• ADIB received and processed 99.5% of payment fund transfer digitally
• ADIB opened a total 8,000 acounts through its new digital product Amwali, the world’s first Islamic digital
proposition for youth
• New features were added to Mobile app to help increase customer usage and adoption – these include IPO
subscription, push notification, Consumer Protection Rights and additional security features for transfers. These
enhancements helped maintain overall Consumer Bank NPS (net promoter score) at 60%
As a result of our digital investment and our efforts to keep customers safe and secure, in Q3 2022 ADIB was awarded the
status of the ‘safest Islamic Bank globally’ by Global Finance.
Outlook
Following a year of rebound in 2021 which saw a 2.3% increase in economic activity, the local economic environment
steadily improved in Q3 2022. Consumer sentiment and spending has recovered and GDP growth is expected to rebound
to a positive 5.1% in 2022. This expectation is underpinned by a sharp increase in oil prices which are expected to remain
above USD 90 per barrel and sustained government expenditure with moderate inflation rate.
ADIB reported a solid financial performance in the first nine months against the backdrop of a positive economic outlook.
Our renewed strategic vision and drive provide a solid foundation for sustained value creation into the medium term
ahead, as we continue to execute our 5-year growth strategy.
---ENDS---
About ADIB:
ADIB is a leading bank in the UAE with more than AED 147 billion in assets. The bank also offers world-class online, mobile and phone
banking services, providing clients with seamless digital access to their accounts 24 hours a day. ADIB provides retail, corporate,
business, private banking and wealth management solutions. The bank was established in 1997 and its shares are traded on the Abu
Dhabi Securities Exchange (ADX).
ADIB has presence in six strategic markets: Egypt, where it has 70 branches, the Kingdom of Saudi Arabia, the United Kingdom, Sudan
and Iraq.
Named World’s Best Islamic Bank by The Financial Times’ The Banker publication, ADIB has a rich track record of innovation, including
introducing the award-winning Ghina savings account, award-winning co-branded cards with Emirates airlines, Etihad and Etisalat and
a wide range of financing products.
ADIB Investor relations Mobile application
Please download the ADIB Investor relations dedicated mobile app available on both Apple and Google play stores. The application
will keep you up to date with the latest developments - from latest share prices and press releases to investor days, financial results
and our document library. You can view stock exchange announcements, presentations, annual and quarterly reports, and interact
with key data onscreen.
For media information, please visit www.adib.ae or contact:
Lamia Hariz
Head of Corporate Communications and Investor relations
Email: lamia.hariz@adib.com
MANAGEMENT DISCUSSION & ANALYSIS REPORT – YTD 2022 13 | positive |
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TECOM GROUP’S Q1 2023 NET PROFIT GROWS 34% TO
AED 255 MILLION AS OCCUPANCY RATES INCREASE FOR
FIFTH CONSECUTIVE QUARTER
• Q1 2023 revenue at AED 514 million, a 6% year-on-year increase on the back of sustained occupancy
levels and high retention rates
• Occupancy rate for commercial and industrial assets reached 87%, the fifth quarter of sequential growth
and a 7% increase from Q1 2022
• Substantial growth in Funds from Operations (FFO1) to AED 359 million, a 44% increase from Q1 2022
• AED 200 million dividend distributed in April 2023, making up a total AED 400 million paid out to
shareholders for H2 2022
Dubai, UAE, 2 May 2023 – TECOM Group PJSC (DFM: TECOM), (the “Company” or the “Group”), the
creator of specialised business districts and vibrant communities, today announced its financial results for
its fiscal 2023 first quarter ended 31 March 2023. The Group delivered a strong financial and operational
performance, reporting a 6% year-on-year (YoY) increase in revenues to AED 514 million and a 34% YoY
increase in net income to AED 255 million.
Financial Highlights
AED ‘000s First Quarter
YoY%
(Unless otherwise stated) 2023 2022
Revenue 513,784 485,111 6%
EBITDA 398,805 349,435 14%
EBITDA Margin 78% 72% 6%
Net Profit 255,133 190,262 34%
Operational Highlights
Commercial and Industrial – As of 31 March 2023 31 March 2022 YoY%
Occupancy Level 87.1% 80.6% 6.5%
Retention Rate 95.4% 94.6% 0.8%
Abdulla Belhoul, Chief Executive Officer, TECOM Group, said: “TECOM Group’s
solid first quarter results, are not just a testament to the success of our long-term
growth strategy, but also a reflection of the underlying business confidence in Dubai
and the thriving business ecosystem in the emirate.
The sustained growth in our occupancy demonstrates the continued demand for our
specialised assets and reaffirms Dubai’s position as a global hub for investment, innovation, and
entrepreneurship. We believe we are well positioned to continue to capitalise on the booming real estate
market in Dubai.
1
Funds from Operations = Cash from operations (including net financing costs and income) before changes in working capitalLooking ahead, our outlook for the rest of the year is positive, particularly with the prospect of higher rental
rates, continued growth in occupancy and the immense potential that the city offers to businesses of all sizes
and from all sectors. We will maintain our focus on maximising value to our shareholders and all our
stakeholders.”
Q1 2023:
- Revenue for the first quarter of 2023 came in at AED 514 million, an increase of 6% YoY that is
driven by a significant increase in our commercial and industrial occupancy rates compared to
the same period last year.
- EBITDA increased 14% to AED 399 million, primarily driven by top line growth and lower
operational expenses.
- Net profit grew 34% YoY to AED 255 million, underpinned by strong growth in revenues,
enhanced operational efficiencies and sustained growth across all business segments.
- Funds from operations (FFO) reached AED 359 million, a 44% increase on Q1 2022, due to
strong collections and continued high levels of customer retention.
Key Operational Activities
Through its provision of business districts, TECOM Group continues to support many industries that drive
Dubai’s diversification agenda and economic growth. In Q1 2023, TECOM Group witnessed:
• The announcement by AstraZeneca on its intention to move to Dubai Science Park with new
sustainable offices ahead of COP28.
• The successful launch and first edition of Dubai Fashion Week (DFW), which recorded a 55%
increase in RSVP’s compared to the 21st edition of Arab Fashion Week in March 2022. M
Normandie French Business School inauguration of its first regional campus at Dubai Knowledge
Park
• The opening of THRYVE™ factory, the first 100% plant-based meat factory in the Middle East, in
Dubai Industrial City.
• Silver Line Gate Group (one of the Middle East’s leading suppliers of milk powder) announcement
to build an AED 200 million manufacturing facility at Dubai Industrial City in line with Dubai
Economic Agenda D33, the UAE food security agenda and Make it in the Emirates.
• Al Khayyat Investments breaking ground on its largest fulfilment centre to date in Dubai Industrial
City.
Dividend
TECOM Group shareholders approved a dividend payment of AED 200 million, that was paid in April 2023.
This follows a AED 200 million pay-out which was distributed in November 2022, taking the total dividend
payment for the second half of 2022 (H2) to AED 400 million.
As per the dividend policy set out in the IPO prospectus, TECOM Group is committed to paying a total
dividend amount of AED 800 million per annum over the first three years of being a listed company. The
next dividend payment will be distributed in September 2023, subject to shareholder approval, and will
cover the first half of 2023.
---ENDS---Note to Editors:
Definitions
TECOM Group has an integrated portfolio of real estate assets, spread across 10 strategically located business districts
in Dubai. These business districts serve 6 industry sectors. We refer to each sector we serve as a Cluster, which consists
of one or more business districts operating in the same industry.
- Technology Cluster: Consists of Dubai Internet City and Dubai Outsource City.
- Media Cluster: Consists of Dubai Media City, Dubai Studio City and Dubai Production City.
- Education Cluster: Consists of Dubai International Academic City and Dubai Knowledge Park.
- Science Cluster: Consists of Dubai Science Park.
- Design Cluster: Consists of Dubai Design District.
- Manufacturing Cluster: Consists of Dubai Industrial City.
More broadly, the Company provides real estate solutions across three segments: Commercial Leasing, Land Leasing
and Industrial Leasing.
• Commercial Leasing. TECOM Group provides state of the art built-to-lease (BTL) and built-to-suit (BTS)
properties across office and retail spaces including purpose-built business centres and HQs tailored to
customer specifications as well as industry specialised facilities (e.g. sound stages, film studios, university
campuses, lab facilities, etc.). Typically, BTL properties have a lease term of 1 to 5 years and BTS properties
have lease terms of 10 years and over.
• Industrial Leasing. Warehouse space, showrooms and worker accommodation facilities utilised by large
corporates and other businesses to accommodate their employees. Typically, lease terms for Industrial
Leasing are 1 to 5 years.
• Land Leasing. Available land within our various business districts for which infrastructure (e.g. roads, water,
electricity, sewage) is already in place or will be put in place allowing us to lease the land or utilise it for our
planned future investments. Typically, lease terms for Land Leasing are between 30 to 50 years.
TECOM Group also provides an array of value-added government and business services (e.g. visa, immigration,
licensing, etc.) including services promoting individual talent, start-ups and entrepreneurship through our dedicated
platforms axs, in5, gofreelance, marketplace.ae and D/Quarters respectively, as well as advertising, property and venue
management services specific to each industry / district. Collectively we refer to these services as Services & Others.
MEDIA ENQUIRIES INVESTOR RELATIONS ENQUIRIES
TECOM Group P.J.S.C Mutaz Albadri Ghaith Zghaibi
media@tecomgroup.ae ir@tecomgroup.ae
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Dubai Electricity & Water Authority
GOVERNMENT OF DUBAI
Press Release
Dubai Electricity and Water Authority PJSC announces solid second quarter
results with a stellar increase in operating cash flow
• Reports robust first half of 2023 revenue of AED 12.7 billion (up by 5.4%)
• In the first 6 months of 2023, customer demand for power and water was up by 3.1% and 5.1% respectively
• For H1, 2023, net cash generated from operating activities is AED 5.4 billion (up by 18.2%)
• Reports consolidated first half operating profit of AED 3.1 billion, and net profit of AED 2.7 billion
H1, 2023
Revenue Net Cash from
AED 12.7 billion Operating Activities
AED 5.4 billion
+5.4% +18.2%
H1, 2023 H1, 2023
Dubai, UAE, 10th August 2023: Dubai Electricity and Water Authority PJSC (ISIN: AED001801011) (Symbol: DEWA),
the Emirate of Dubai’s exclusive electricity and water services provider, which is listed on the Dubai Financial Market
(DFM), today reported its second quarter 2023 consolidated financial results, recording quarterly revenue of AED 7.3
billion and net profit of AED 1.98 billion. For the first six months, DEWA’s consolidated revenue was AED 12.7 billion
and net profit was AED 2.7 billion.
By the end of H1, 2023, the Company’s net cash from operating activities increased by a record AED 837million to
AED 5.4 billion, representing a stellar 18.2% increase versus the same period for the last year.
Robust on the ground fundamentals are driving top line growth
DEWA’s first six month consolidated revenue increase of 5.4% to AED 12.7 billion was mainly driven by an increase in
demand for electricity, water, cooling services and an increase in the revenues of DEWA’s other portfolio of assets.
Revenue growth for electricity, water and cooling increased by 5.7%, 3.8% and 4.9% respectively. DEWA’s other
portfolio of assets grew their revenue by 7.8%.
During the second quarter consolidated revenue increased by 4.1% to AED 7.3 billion, driven by an increase in demand
for electricity, water and cooling services and an increase in the revenues of DEWA’s other portfolio of assets.
Demand for power in the second quarter reached 14.3 TWh compared to 14.0 TWh for the same period in 2022.
DEWA’s second quarter gross heat rate for power was 8,230 BTU / kWh, which is a 4.2% improvement compared to
the same period in the last year, reflecting higher operational efficiency resulting from the Company’s targeted
sustainability and environmental efforts.
Page 1 of 4Demand for water in the second quarter of 2023 reached 35.3 billion imperial gallons (BIG), representing a 4.6%
increase.
By the end of the second quarter of 2023, DEWA is serving 1,184,711 customer accounts, representing an increase of
14,998 customer accounts from the first quarter of 2023.
Net Profit Reconciliation
Compared to the first half of 2022, DEWA’s first half 2023 net profit was impacted as a result of an increase in net
finance costs, and depreciation. Net finance costs were higher by AED 262 million as a result of an increase in EIBOR
during the last 12 months, and as a result of a reduction in capitalised interest of new IPP projects that have been
commissioned. In addition, depreciation has increased by AED 190 million due to new IPP projects that were
commissioned, adding to DEWA’s generation capacity.
Quote
“At DEWA, we continue the journey of excellence and sustainable growth guided by the vision of His Highness Sheikh
Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and the
directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and
Chairman of the Executive Council of Dubai, and His Highness Sheikh Maktoum bin Mohammed bin Rashid Al
Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance.
DEWA’s continued focus on smart project delivery, innovation and accelerating digital transformation have bolstered
our top line results and our operating cash flow performance through the first six months of 2023. We are committed
to advancing strategic priorities of sustainability focused smart growth, enhanced customer happiness, globally leading
operational excellence and attractive capital returns for our shareholders, ” said HE Saeed Mohammed Al Tayer, MD
& CEO of DEWA.
“In line with our strategy, we continue to maintain a robust infrastructure and services to keep pace with rapid
developments in Dubai driven by the sustainable economic growth, execution of the ambitious Dubai 2040 Urban
Master Plan and the associated increase in population. Today we provide world leading services to over 1.18 million
customers at the highest standards of availability, reliability, efficiency and safety, and we are committed to future
proofing the same,” added Al Tayer.
“DEWA’s strategy is focused on delivering consistent returns, upholding highest Environmental, Social, and
Governance (ESG) standards, sustainable growth and compounding of our growth value over time for our investors”
noted Al Tayer
Delivering growth
The Company’s installed generation capacity currently stands at 14.9 GW with 2.4 GW of this capacity representing
renewable energy. In line with Dubai Clean Energy Strategy 2050, the Company added 300 MW of green capacity
during the 2nd quarter of 2023. The current installed desalinated water production capacity is unchanged at 490 MIGD.
Page 2 of 4DEWA Gross Installed Capacity as of June 30th, 2023
Generation Plant Capacity (MW) Desalination Type MIGD
Jebel Ali & Al Aweer 10,690 Jebel Ali Multi Stage Flash 427
Mohammed bin Rashid Al Maktoum 2,427 Jebel Ali Reverse Osmosis 63
Solar Park
Hassyan Power Plant 1,800
Total 14,917 Total 490
By the end of 2030, DEWA plans to have gross installed capacity of 20 GW and 730 MIGD of desalinated water. Of
this 20 GW, DEWA intends to have 5 GW of installed renewable capacity, representing 25% generation from
renewable sources. In addition, the Company plans to add 240 MIGD of desalination capacity using reverse osmosis
technology.
In the second quarter of 2023, DEWA received a world record low bid of USD 1.621 cents per kWh on the IPP tender
for its 1800 MW solar PV plant at Mohammed bin Rashid Al Maktoum Solar Park. DEWA also received the world’s
lowest levelized tariff of 0.38923 USD per cubic meter for its 120 MIGD Hassyan seawater reverse osmosis IWP
tender, and USD 0.365 per cubic metre in the alternative proposal of 180 MIGD.
In May, 2023, DEWA commissioned its 60 MIG Lusaily water reservoir. By the end of 2024, DEWA expects to increase
its water reservoir capacity from 882 MIG to 1,152 MIG. These reservoirs will enhance water security and enable
DEWA to keep pace with the increase in demand.
In the second quarter of 2023, DEWA’s generation plants maintained world leading availability factor and reliability
factor of 90.4% and 99.9% respectively, representing an increase from the same period in 2022.
By the end of the half year of 2023, DEWA commissioned seven 132 kV substations, three 33kV substations, and six
hundred and seventy six 11kV substations. There are currently seventy four 33kV substations and 43,557 (11kV or
6.6 kV) substations in DEWA’s network.
Dividend policy
As per DEWA’s dividend policy, the Company expects to pay a minimum annual dividend of AED 6.2 billion, over the
first five years, starting October 2022. The dividends are being paid semi-annually in April and October. The
upcoming dividend payment of AED 3.1 billion for H1, 2023 is expected to be disbursed in October 2023.
Audited Financials
DEWA’s audited financials can be found at DEWA’s website: https://www.dewa.gov.ae/en/investor-relations
Page 3 of 4or on DFM’s website https://www.dfm.ae/en/issuers/listed-securities/securities/company-profile-page?id=DEWA
Contacts
For investor relations, please contact: For media, please contact:
dewainvestors@dewa.gov.ae media@dewa.gov.ae
About Dubai Electricity and Water Authority PJSC
DEWA was created in 1992 as a result of the merger of the Dubai Electricity Company and the Dubai Water
Department. DEWA is the exclusive electricity and water utility provider in Dubai. The Group generates, transmits and
distributes electricity and potable water to end users throughout Dubai. DEWA owns 56% of Empower, currently the
world’s largest district cooling services provider by connected capacity, and owns, manages, operates and maintains
district cooling plants and affiliated distribution networks across Dubai. The Group also comprises a number of other
businesses including Mai Dubai, a manufacturer and distributor of bottled water, Digital DEWA, a digital business
solutions company, and Etihad ESCO, a company focused on the development and implementation of energy efficient
solutions. To learn more, visit http://www.dewa.gov.ae
Cautionary statements relevant to forward-looking information
This news release contains forward-looking statements relating to DEWA’s operations that are based on
management’s current expectations, estimates and projections about the energy industry and other relevant industries
that DEWA operates in. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,”
“projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “will,” “budgets,”
“outlook,” “trends,” ”guidance,” “focus,” “on schedule,” “on track,” “is slated,” “goals,” “objectives,” “strategies,”
“opportunities,” and similar expressions are intended to identify such forward-looking statements. These statements
are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of
which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ
materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue
reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally
required, DEWA undertakes no obligation to update publicly any forward-looking statements, whether as a result of
new information, future events or otherwise.
-Ends-
Page 4 of 4 | neutral |
nbf
News Release
otibgJI OF4_,SJIc_Li4
Ref No. 28 July 2022 National Bank of Fujairah
National Bank of Fujairah PJSC (NBF) posted a solid performance in H1 2022
Net profit reached AED 150.5 million up 97.5% and surged 49.4% quarter-on-
quarter on the back of strong business growth and asset and liability
management
Progressive performance underpinned by robust capital adequacy, enhanced balance
sheet management and improvement in asset quality
28 July 2022: NBF is pleased to announce its results today for the six month period
ended 30 June 2022.
Highlights:
NBF recorded year-on-year growth of 97.5% to close the six month period at a net
profit of AED 150.5 million compared to AED 76.2 million in the corresponding period
of 2021, up 49.4% quarter-on-quarter and 163.6% for the three month period ended
30 June 2022 over the corresponding period of 2021. This exhibits the bank’s
renewed focus on core business growth and improving resilience in spite of the
prevailing geopolitical headwinds.
Aided by higher net interest income and net income from Islamic financing and
investment activities, fee and exchange income, NBF posted an operating profit of
AED 609.1 million for the six month period, a significant increase of 21.3% compared
to AED 502.0 million in the corresponding period of 2021 and up 7.7% quarter-on-
quarter and 24.4% for the three month period ended 30 June 2022 over the
corresponding period of 2021.
Operating income growth of 22.3% was recorded for the three month period ended
30 June 2022 over the corresponding period of 2021; and 7.9% compared to Q1
2022. Operating income reached AED 858.5 million for the six month period ended
30 June 2022, up 18.5% compared to AED 724.5 million in the corresponding period
of 2021, reflecting the improving business sentiment, UAE economy’s sustained
upward growth momentum despite challenging times; and in line with the bank’s
recovery strategy.
Net interest income and net income from Islamic financing and investment
activities grew 10.9% to AED 520.1 million for the six month period ended 30
June 2022 compared to AED 469.1 million in the corresponding period of
2021.
NBF RESULTS National Bank of Fujairah PJSC
PO Box: 2979, Dubai, UAE
Page 1 of 5 Tel: +971 600 565551
Fax: +971 9 222 7992
www.nbf.aeNews Release
Ref No. 28 July 2022
It was up 16.6% for the three month period ended 30 June 2022 compared to
the corresponding period of 2021; and up 18.0% compared to Q1 2022.
Net fees, commission and other income rose 29.0% to AED 214.5 million for
the six month period ended 30 June 2022 compared to AED 166.2 million in
the corresponding period of 2021. It was up 23.7% for the three month
period ended 30 June 2022 compared to the corresponding period of 2021;
and up 2.7% compared to Q1 2022.
NBF posted record foreign exchange and derivatives income of AED 102.5
million for the six month period ended 30 June 2022, with an exceptional
growth of 87.9% compared to AED 54.6 million in the corresponding period of
2021. It was up 134.4% for the three month period ended 30 June 2022
compared to the corresponding period of 2021; and up 17.9% compared to
Q1 2022.
Income from investments and Islamic instruments stood at AED 21.3 million
compared to AED 34.6 million in the corresponding period of 2021.
Operating expenses increased by 12.1%, reflecting NBF’s investments in its
businesses, systems, infrastructure and people. These investments include a set of
digitalisation initiatives to enhance our focus on exceptional customer service
through digital adoption and innovation. Nevertheless, NBF’s cost-to-income ratio
improved to 29.1% compared to 30.7% in the corresponding period of 2021, after
achieving further productivity improvements. This provides ample headroom to
continue investing in our technological capabilities.
NBF maintained its policy of prudent and transparent recognition of problem
accounts. The small number of exceptional group exposures that had been
earmarked for resolution are progressing well in line with the bank’s recovery
strategy. NBF secured net impairment provisions of AED 458.6 million for the six
month period ended 30 June 2022 compared to AED 425.7 million in the
corresponding period of 2021. During the period, the bank’s impairment reserve
reduced by 9.3% to AED 172.0 million compared to AED 189.7 million as at 31
December 2021. Total provision coverage ratio (including impairment reserves)
improved to 102.7% compared to 87.0% as at 31 December 2021. The NPL ratio
improved to 8.5% compared to 9.8% as at 31 December 2021 and IFRS 9 stage 2
exposure stood at 6.2% compared to 6.1% as at 31 December 2021.
NBF RESULTS National Bank of Fujairah PJSC
PO Box: 2979, Dubai, UAE
Page 2 of 5 Tel: +971 600 565551
Fax: +971 9 222 7992
www.nbf.aeNews Release
Ref No. 28 July 2022
Excluding the few exceptional group exposures, the NPL ratio would reduce to 4.6%
(31 December 2021: 5.5%).
Loans and advances and Islamic financing receivables rose by 8.2% to reach AED
27.7 billion compared to AED 25.6 billion at 2021 year-end, up by 9.7% from 30
June 2021.
Investments and Islamic instruments increased by 17.2% from AED 4.4 billion at
2021 year-end to AED 5.1 billion as at 30 June 2022, up by 5.4% from 30 June 2021
evidencing the deployment of a portion of excess liquidity towards the high quality
investment book to augment shareholder value.
The capital adequacy ratio (CAR) stood at 18.3% (Tier 1 ratio of 17.2% and CET 1
ratio of 13.3%) compared to 19.1% (Tier 1 ratio of 18.0% and CET 1 ratio of 13.8%)
at 2021 year-end and is being maintained at this heightened level to support the
bank’s ability to ride out any challenges arising out of the rapidly evolving operating
landscape.
Customer deposits and Islamic customer deposits stood at AED 31.8 billion compared
to AED 32.2 billion at 2021 year-end, up by 6.7% from 30 June 2021. Current and
Saving Accounts (CASA) deposits increased by AED 509.5 million from 2021 year-
end, a 3.3% increase to AED 15.9 billion as at 30 June 2022. CASA deposits
improved to a record 50.0% of total customer deposits compared to 47.9% as at 31
December 2021 and 40.6% as at 30 June 2021 softening the impact pertinent to the
cost of deposits.
Total assets rose by 1.8% to reach AED 43.7 billion compared to AED 42.9 billion at
2021 year-end, up by 6.5% from 30 June 2021.
Ample liquidity has been maintained with lending to stable resources ratios at 81.5%
(2021: 76.5%) and eligible liquid assets ratio (ELAR) at 17.2% (2021: 26.2%), well
ahead of Central Bank of UAE’s minimum requirements.
Return on average assets improved to 0.7%, up from 0.4% for the corresponding
period in 2021.
Return on average equity improved to 5.3%, up from 2.7% for the corresponding
period in 2021.
NBF RESULTS National Bank of Fujairah PJSC
PO Box: 2979, Dubai, UAE
Page 3 of 5 Tel: +971 600 565551
Fax: +971 9 222 7992
www.nbf.aeNews Release
Ref No. 28 July 2022
Dr. Raja Easa Al Gurg, Deputy Chairperson said:
“We are pleased with the outstanding set of H1 2022 results achieved by NBF.
Improvement in asset quality and good business growth augur well for the second half of
the year and beyond. Our strategic focus and priorities are on track to ensure we return
to our long-term trend of sustainable growth.
Despite the soaring energy prices, exceptionally high inflation stoking fears of imminent
recession and an exponential rise in prices leading to an unprecedented lower economic
growth across the world amid the continued interest rate hikes, the UAE economy has
fared well. This is clearly as a result of the country’s overall economic support measures,
its achievement in containing the financial and economic challenges resulting from the
COVID-19 fall-out, sustainable government spending, positive outlook for credit growth
and the progress in business sentiment. NBF is strongly positioned to gain from the
quality business opportunities presented through the positive market momentum.
Supported by a sound balance sheet, strong capital adequacy and liquidity, NBF aims to
carry this positive momentum for the future quarters of 2022 and beyond, carefully
navigating the evolving operating environment. We are also delighted to see the growing
positive market recognition for the bank’s efforts with NBF bagging the prestigious MEA
Finance Banking Technology Awards 2022 for “Best Innovation in Trade Finance” and
“Most Innovative Trading Platform” in the last few months.
Our aim is for NBF to continue to provide exceptional service levels through a digital
enabled approach to its customers, to bring together the provision of personal help and
assistance, as and when required, alongside increasing digital provision, invest in talent
sustainability and innovation and uphold the highest standards of compliance and
internal controls to ensure the effective execution of its business strategy.
Supporting the communities at large and promoting green initiatives, NBF will maintain
its focus on environmental, social and governance-friendly activities and businesses.”
[End]
NBF RESULTS National Bank of Fujairah PJSC
PO Box: 2979, Dubai, UAE
Page 4 of 5 Tel: +971 600 565551
Fax: +971 9 222 7992
www.nbf.aeNews Release
Ref No. 28 July 2022
About National Bank of Fujairah PJSC:
Incorporated in 1982, National Bank of Fujairah PJSC (NBF) is a full services corporate
bank with strong corporate and commercial banking, treasury and trade finance
expertise as well as an expanding suite of personal banking options and Shari’ah
compliant services. Leveraging its deep banking experience and market insight within
Fujairah and the UAE, NBF is well-positioned to build lasting relationships with its clients
and help them achieve their business goals.
NBF’s key shareholders include the Government of Fujairah, Easa Saleh Al Gurg LLC and
Investment Corporation of Dubai. Rated Baa1 / Prime-2 for deposits and A3 for
counterparty risk assessment by Moody’s and BBB / A-2 by Standard & Poor’s, both with
a stable outlook, the bank is listed on the Abu Dhabi Securities Exchange under the
symbol “NBF”. It has a branch network of 15 (of which 1 is an electronic banking service
unit) across the UAE.
For further information, please contact:
Strategic Marketing and Communications Department
E-mail: CorpComm@nbf.ae
Telephone: +971 4 507 8351 and +971 4 507 8576
NBF RESULTS National Bank of Fujairah PJSC
PO Box: 2979, Dubai, UAE
Page 5 of 5 Tel: +971 600 565551
Fax: +971 9 222 7992
www.nbf.ae | neutral |
AADDNNOOCC CCllaassssiiffiiccaattiioonn:: PPuubblliicc
Media Release:
ADNOC Gas Reports Net Income of $2.3 Billion
Delivering Robust Financial Performance in H1 2023
Company demonstrated resilience of its business model by maintaining stable
margins in a lower price environment
Robust H1 2023 performance places the Company firmly on track to meet its
2023 guidance
Recent $1.34 billion contract awards for new natural gas pipeline to the
Northern Emirates underscore ADNOC Gas’ commitment
to profitable growth
Abu Dhabi, UAE – August 4, 2023: ADNOC Gas plc (together with its direct and indirect subsidiaries, “ADNOC
Gas” or the “Company”) (ADX symbol: “ADNOCGAS” / ISIN: “AEE01195A234”), the world-class integrated gas
processing company, today announced its financial results for the three months and six months ended June 30,
2023 (“Q2 2023” and “H1 2023”). The unaudited pro forma financial results of the Company for the comparative
period (i.e., the three and six-month period ended June 30, 2022 (“Q2 2022” and “H1 2022”) noted herein are
reported on a Pro Forma Adjusted basisi .
Robust financial performance despite pricing impact
The Company’s H1 2023 revenue stood at a $10.6 billion compared to Pro Forma Adjusted Revenue of $13.3
billion in H1 2022, impacted by the pricing environment. Revenue in Q2 2023 was reported at $5.4 billion
compared to Pro Forma Adjusted Revenue of $7.1 billion in Q2 2022. ADNOC Gas maintained high reliabilityii
with a 98.9% average across its facilities in H1 2023, contributing to a 15% increase in production volumes in
Q2 2023 over Q1 2023.
ADNOC Gas adapted to lower LPG and Brent crude oil prices in H1 2023 compared to the high pricing
environment of H1 2022. The Company strategically shifted towards higher-margin export liquids and focused on
increased efficiency. These measures enabled the Company to maintain a flat EBITDA of $1.8 billion and Net
Income of $1.0 billion in Q2 2023, demonstrating that ADNOC Gas is a predictable and resilient margin business
underpinned by profitable growth.
Ahmed Alebri, Chief Executive Officer of ADNOC Gas, commented: “Our results for the first half of 2023
showcase the resilience and robustness of our business in the current lower price environment compared to the
higher prices witnessed in H1 2022. For the period ending 30 June 2023, we delivered a net income of $2.3AADDNNOOCC CCllaassssiiffiiccaattiioonn:: PPuubblliicc
billion. This performance demonstrates the strength of our business, which was also supported by selling more
high-margin export liquids – a strategy that has proven effective.
“We continue to witness long-term structural demand growth for natural gas as a critical fuel for the responsible
global energy transition. ADNOC Gas remains fully committed to investing in our people, operations, and markets,
and we have continued to invest in our strategic growth opportunities throughout the first half of 2023.
“Our recent signing of significant long-term LNG agreements and our domestic investments demonstrate that we
remain ideally positioned to meet both local and international demand, while further decarbonizing our operations
in line with the UAE’s Net-Zero 2050 ambition, as we continue to deliver value for our shareholders over the
longer-term.”
Continuing to invest in growth
In line with ADNOC Gas’ growth strategy, the Company recently awarded $1.34 billion in contracts for extending
its natural gas pipeline to over 3,500km, serving the Northern Emirates, marking another key milestone for the
sales gas pipeline network enhancement (ESTIDAMA) program. This strategic pipeline extension will drive further
growth for ADNOC Gas as it continues to provide sustainable gas supplies to customers in support of the UAE’s
plan to achieve gas self-sufficiency.
Focused on broadening the international customer base
ADNOC Gas continues to capitalize on the growing global demand for natural gas while extending its reach and
reputation as a reliable supplier. In a significant post-period event, on July 18, ADNOC Gas announced a $7-9
billion 14-year supply agreement with Indian Oil Corporation Ltd. (IOCL) for the export of up to 1.2 mmtpa of
LNG. This comes on the heels of the Company’s Q2 2023 signing of a supply agreement with TotalEnergies Gas
and Power for the export of LNG to various markets around the world. In February, ADNOC Gas made the first-
ever delivery of LNG from the Middle East to Germany, paving the way for longer-term deliveries.
Dividend guidance maintained
As stated during its IPO, ADNOC Gas maintains its dividend target of $1.625 billion in the fourth quarter of 2023
and a further $1.625 billion dividend in the second quarter of 2024. Thereafter, ADNOC Gas expects to grow the
annual target dividend amount by 5% per annum on a per-share basis over the 2024-2027 period. The targeted
growth in dividends underscores ADNOC Gas’ strong and visible future cash flows, which provide ample
headroom to invest in long-term future growth and provide stable returns for shareholders.AADDNNOOCC CCllaassssiiffiiccaattiioonn:: PPuubblliicc
US $ Million H1 22 H1 23 YoY % Q2 22 Q1 23 Q2 23 YoY % QoQ %
Pro Forma Pro Forma
Adjusted
H1 23 vs.
Adjusted
Q2 23 vs. Q2 23 vs.
H1 22 Q2 22 Q1 23
resultsi resultsi
Revenue 13,284 10,623 -20% 7,123 5,226 5,397 -24% 3%
COGS -7,773 -6,015 -23% -4,241 -2,938 -3,078 -27% 5%
Opex -947 -1,067 13% -468 -514 -553 18% 8%
EBITDA 4,564 3,540 -22% 2,414 1,774 1,766 -27% 0%
Net Income 2,553 2,259 -12% 1,380 1,275 984 -29% -23%
EBITDA Margin 34% 33% -1% 34% 34% 33% -1% -1%
Capital
-289 -399 38% -166 -174 -226 36% 30%
Expenditure
Free Cash Flow 2,882 2,109 -27% 1,509 1,075 1,035 -31% -4%
i ADNOC Gas was incorporated in the Abu Dhabi Global Market, Abu Dhabi, UAE on 8 December 2022 and the relevant
assets were contributed to ADNOC Gas effective 1 January 2023 as part of a reorganisation (the “Reorganisation”) that
included the entry into a gas supply and purchase agreement, a transitional marketing and transportation agreement, a
sulphur sales and marketing agreement, a pipelines use and operation agreement, a re-injection gas sale agreement and
certain lease agreements. The unaudited pro forma financial results for H1 2022 presented in this document give effect to the
impact of the Reorganisation as if the Reorganisation had taken place on 1 January 2022. The unaudited pro forma financial
results for H1 2022 have been prepared for illustrative purposes only and are based on available information and certain
assumptions and estimates that we believe are reasonable and may differ materially from the actual amounts that would have
been achieved had the Reorganisation taken place on 1 January 2022.
ii Reliability is defined as total available hours (8,760 hours per annum) reduced by the hours of non-availability due to
unscheduled outages divided by total available hours. Average Reliability of 98.9% was achieved across relatable ADNOC
Gas facilities.
###AADDNNOOCC CCllaassssiiffiiccaattiioonn:: PPuubblliicc
About ADNOC Gas
ADNOC Gas, listed on the ADX (ADX symbol: “ADNOCGAS” / ISIN: “AEE01195A234”), is a world-class, large-
scale integrated gas processing company operating across the gas value chain, from receipt of raw gas feedstock
from ADNOC through large, long-life operations for gas processing and fractionation to the sale of products to
domestic and international customers. ADNOC Gas supplies approximately 60% of the UAE’s sales gas needs
and supplies end-customers in over 20 countries. To find out more, visit: www.adnocgas.ae.
For media inquiries, please contact:
Mayyasa Saeed Al Yammahi
External Communications Manager, Corporate Communication & CSR
+971 50 117 1779
mayyasa@adnoc.ae
For investor inquiries, please contact:
Zoltan Pandi
Vice President, Investor Relations
+971 56 4362067
zpandi@adnoc.aedq_izi
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11
1Table of Contents
Financial Highlights 3
Operational Highlights 8
Outlook 9
Financial Statements 11
Dividend Policy 15
Appendix: Glossary 17
Page | 2Financial Highlights1
H1 2023
For the first half of 2023 ADNOC Gas plc (“ADNOC Gas” or the “Company”) delivered revenue of
$10,623 million, EBITDA of $3,540 million and net income of $2,259 million (including a non-recurring
item of $298 million from recognizing a deferred tax income in the first quarter).
The Company demonstrated its resilient business model, boosted by effective optimization strategies
(higher volumes, shift to higher margin product streams and cost optimization), to maintain a robust
EBITDA margin of 33% in a lower price environment.
ADNOC Gas continued to focus on operational efficiency and cost optimization, further demonstrating
the best-in-class mix of assets across its network. During the first half of 2023, high levels of reliability
across its assets were maintained at 98.9%.
During the first half of 2023, Domestic Gas production volumes were 1,092 TBTU slightly higher
compared to 1,072 TBTU in the first half of 2022. Exports & Traded liquids volumes also improved to
466 TBTU versus 463 TBTU in the prior period. ADNOC Gas’ share of LNG production volumes reduced
from 137 TBTU to 125 TBTU, mainly due to planned shutdowns.
Brent crude prices in the first half of 2023 were 23% lower year-on-year. LNG, LPG and Naphtha prices
also declined versus the prior year period.
Hence, revenue was impacted by a less favorable pricing environment in the first half of 2023, falling
20% to $10,623 million versus $13,284 million in the first half of 2022. At the same time the feedstock
cost declined 23% from $7,773 million to $6,015 million, benefiting from the Gas Supply and Payment
Agreement (GSPA) with ADNOC Upstream. This 25-year contract is well designed and enables ADNOC
Gas to share in any price upside while also providing downside protection in a less favorable price
environment.
EBITDA in the period was $3,540 million, 22% lower than in the first half of 2022. Domestic Gas EBITDA
amounted to $1,169 million, 8% higher due to favorable contract prices. The EBITDA of Export & Traded
Liquids was impacted by the price environment, decreasing 28%, from $2,498 million a year ago to
$1,790 million in the current period. ADNOC Gas’ share of LNG EBITDA reduced from $709 million to
$490 million year-on-year, mainly due to the price environment and lower volumes due to planned
shutdowns.
In the first half of 2023, net income was $2,259 million. This represents a 12% decrease from $2,553
million recorded in the first half of 2022. The first half of 2023 includes a non-recurring item of $298
million from recognizing a deferred tax asset following the formation of ADNOC Gas. Despite a revenue
decrease of $2,662 million during this period, the impact was largely offset by the reduction of feedstock
costs, which fell by $1,758 million, and a reduction in taxes by $782 million.
A reduction in Free Cash Flow from $2,882 million in the first half of 2022 to $2,109 million in the first
half of 2023 was mainly due to lower Net Income coupled with higher CapEx (+38% YoY) and lower
taxes.
Page | 3During H1 23, ADNOC Gas announced the award of $1.34 billion in contracts to extend the gas pipeline
network by more than 300 kilometers to better connect the Northern Emirates of the UAE
(“ESTIDAMA”).
CapEx spend of $399 million in the first six months of 2023 was driven by growth projects such as
ESTIDAMA and the construction of an additional greenfield gas processing facility co-located with a
significant ADNOC upstream reservoir.
The comprehensive shutdown program and solid asset management systems continue to demonstrate
the effectiveness of our maintenance activities. Of the total CapEx spend, $215 million was spent on
sustaining our assets and turnaround activities enhancing technical life.
Q2 2023
ADNOC Gas plc (“ADNOC Gas” or the “Company”) delivered quarterly revenue of $5,397 million, EBITDA
of $1,766 million and net income of $984 million.
Thanks to the optimization strategies mentioned earlier the company was able to maintain a robust
EBITDA margin of 33% in a lower price environment.
During the second quarter, high levels of reliability across its assets were maintained at 99.0%.
Domestic Gas production volumes were 8% higher YoY at 582 TBTU, compared to 540 TBTU in the
second quarter of 2022. Exports & Traded liquids volumes also increased to 256 TBTU versus 247 TBTU
in the year-ago period. ADNOC Gas’ share of LNG production volumes were slightly down year on year
to 63 TBTU from 66 TBTU.
Brent crude prices in the second quarter of 2023 were 31% lower year-on-year. LNG, LPG and Naphtha
prices also declined significantly versus the prior year period, falling 31%, 40% and 32% respectively.
Hence, revenue was impacted by a less favorable pricing environment in the second quarter of 2023,
falling 24% versus the second quarter of 2022, from $7,123 million to $5,397 million. At the same time
the feedstock cost declined 27% from $4,241 million to $3,078 million, benefiting from the Gas Supply
and Payment Agreement (GSPA) with ADNOC Upstream.
EBITDA in the period stood at $1,766 million, 27% lower than in the second quarter of 2022. Domestic
Gas EBITDA amounted to $615 million, 12% higher due to favorable contract prices. The EBITDA of
Export & Traded Liquids was impacted by the price environment, decreasing from $1,282 million a year
ago to $853 million in the current period. ADNOC Gas’ share of LNG EBITDA reduced from $403 million
to $270 million year-on-year, mainly due to the price environment.
In the second quarter of 2023, net income was $984 million, a decrease from $1,380 million recorded
in the second quarter of 2022.
A reduction in Free Cash Flow from $1,509 million in the second quarter of 2022 to $1,035 million in
the second quarter of 2023 was mainly due to lower Net Income and higher CapEx.
CapEx spend of $226 million in the second quarter of 2023, up 36% year on year, was driven by growth
projects mentioned previously.
The comprehensive shutdown program and solid asset management systems continue to demonstrate
the effectiveness of our maintenance activities. Of the total CapEx spend, $115 million was spent on
sustaining our assets and turnaround activities enhancing technical life.
P age | 4Financial Summary
H1 2023
$ Million H1 221 H1 232 YoY %
10,623
Revenue 13,284 -20%
-6,015
COGS -7,773 -1,067 -23%
OEBpeITxDA 4-,954674 3,540 13%
Net Income232 2,553 2,259 -22%
33% -12%
EBITDA Margin 34% 18% -1%
3
Net Income Margin 19% -1%
2,509
Net cash generated f rom operating activities 3,171 -399 -21%
Capital Expendi ture -289 2,109 38%
Free Cash Flow 2,882 -27%
1 ADNOC Gas was incorporated in the Abu Dhabi Global Market, Abu Dhabi, UAE on December 8, 2022 and the
relevant assets were contributed to ADNOC Gas effective January 1, 2023 as part of a reorganisation (the
“Reorganisation”) that included the entry into a gas supply and payment agreement, a transitional marketing and
transportation agreement, a sulphur sales and marketing agreement, a pipelines use and operation agreement, a re-
injection gas sale agreement and certain lease agreements. The unaudited pro forma financial results for H1 2022
presented in this document give effect to the impact of the Reorganisation as if the Reorganisation had taken place
on January 1, 2022.
2 Net Income in H1 2023 includes a $298 million benefit from recognizing a deferred tax asset, a non-reoccurring
item, following the formation of ADNOC Gas.
3 Net income margin excludes one-off deferred tax asset of $298 million
Page | 5Q2 2023
$ Million Q2 221,4 Q1 232 Q2 23 YoY % QoQ %
Q2 23 vs. Q2 Q2 23 vs. Q1
22 23
5,226
Reven ue 7,123 -2,938 5,397 -24% 3%
COGS -4,241 -514 -3,078 -27% 5%
OEBpeITxDA 2-,446184 1,774 1-,575636 18% 8%
Net Income252 1,380 1,275 984 -27% 0%
34% -29% -23%
EBITDA Margin 34% 19% 33% -1% -1%
3
N et Income Margin 19% 18% -1% -1%
1,2 48
Net cash generated f rom operating activities 1,675 -174 1,260 -25% 1%
Capital Expendi ture -166 1,075 -226 36% 30%
Free Cash Flow 1,509 1,035 -31% -4%
1 ADNOC Gas was incorporated in the Abu Dhabi Global Market, Abu Dhabi, UAE on December 8, 2022 and the
relevant assets were contributed to ADNOC Gas effective January 1, 2023 as part of a reorganisation (the
“Reorganisation”) that included the entry into a gas supply and payment agreement, a transitional marketing and
transportation agreement, a sulphur sales and marketing agreement, a pipelines use and operation agreement, a re-
injection gas sale agreement and certain lease agreements. The unaudited pro forma financial results for Q2 2022
presented in this document give effect to the impact of the Reorganisation as if the Reorganisation had taken place
on January 1, 2022.
2 Net Income in Q1 2023 includes a $298 million benefit from recognizing a deferred tax asset, a non-reoccurring
item, following the formation of ADNOC Gas.
3 Net income margin excludes one-off deferred tax asset of $298 million
4 Pro Forma Adjusted Results
Page | 6H1 2023 Revenue reconciliation
Description $ Million
Total Revenue (As reported in Consolidated Statement of Profit or Loss) 8,163
+ Revenue from ADNOC LNG JV p roportionate Share (Equity Accounted) 1,411
+ Revenue from Re-injection Gas 1,029
+A DRNevOeCn uGea fsr Romev IeGn (uinet ercompany elimination & Other Income) 102,602 3
Page | 7Operational Highlights
ADNOC Gas Plants Efficiency
Efficiency (YTD) Q2 22 Q1 23 Q2 23 H1 22 H1 23
86.8 83.1
97.8 94.4
Asset Utilization (%) 90.2 79.1 87.4
99.0 98.9
Asset Availability (%) 99.4 90.5 98.4
Asset Reliability (%) 99.6 98.5 99.7
ADNOC Gas Production Volumes (TBTU)
Domestic Gas Trading & Exports ADNOC LNG JV Product Share
1672 1683
137 125
463 466
901
852
782
63
66
62 256
247
210
1,072 1,092
540 510 582
Q2 2022 Q1 2023 Q2 2023 H1 2022 H1 2023
Note: ADNOC Gas’ proportionate 70% share of volumes in ALNG.
There was improved availability and utilization in Q2 23 on account of fewer shutdowns compared to
Q1 23. Consequently, production improved versus the prior quarter and comparable quarter in the
previous year.
Page | 8Outlook
To enable ADNOC’s strategic imperative of expanding production capacity from four to five million
barrels per day by 2027, ADNOC Gas has accelerated its own growth plans.
The Company continues to make significant progress with its five-year (2023 to 2027) $14 billion
strategic and growth project portfolio, encompassing a range of projects integral to ensuring it
continues to leverage the expansion of ADNOC’s upstream output and elevates the efficiency of its own
operations and production output.
To enable the domestic delivery of that increased capacity, ADNOC Gas recently awarded $1.34 billion
in contracts for the construction of approximately 300km of natural gas pipeline to the Northern
Emirates, marking another key milestone for the sales gas pipeline network enhancement (ESTIDAMA)
program. This strategic pipeline extension will drive further growth for ADNOC Gas as it continues to
supply sustainable gas supplies in the UAE in support of the company’s strategy to increase its market
share and enhance its customer base.
Page | 9ADNOC Gas’ fiscal year 2023 financial guidance
Units H1 23 FY23
EBITDA Margin % 33 33 - 35
Volumes
Domestic Gas Products TBTU 1092 2,150 – 2,250
Export and Traded Liquids TBTU 466 900 – 950
1
ADNOC LNG JV Products TBTU 125 200 – 250
Net Profit Unit Margins
Domestic Gas Products $/ MMBTU 0.88 0.80 – 0.90
2
Export and Traded Liquids $/ MMBTU 1.68 1.70 – 1.80
2
ADNOC LNG JV Products $/ MMBTU 1.70 1.60 – 1.80
1. ADNOC Gas’ proportionate 70% share of volumes includes LNG, LPG, Naphtha and Sulphur
2. Assuming an H2 23 oil price range of 70-80 US$/bbl
The Company’s long-term growth remains supported by the maintenance of production capacity, the
UAE’s goal to achieve gas self-sufficiency and the development of its vast low carbon solutions. ADNOC
Gas continues to strive to make strong progress on delivering growth and maximizing returns for our
shareholders. The immediate focus remains on meeting robust financial targets, whilst maintaining
operational excellence.
Page | 10Financial Statements
INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
For the period from 8 December 2022 (date of incorporation) to 30 June 2023
For the three-month For the period from 8
period ended 30 June December 2022 to 30
2023 June 2023
$’000 $’000
Revenue 4,059,205 8,162,920
Gas costs:
- Minimum price (868,902) (1,595,787)
- Profit sharing (1,602,381) (3,283,387)
- Fuel gas payment (47,545) (88,888)
Other operating income 282,737 528,714
Employee costs (237,646) (418,038)
Depreciation and amortization (257,181) (511,517)
Inventory consumption (18,309) (39,482)
Other operating costs (45,707) (103,880)
General and administration expenses (7,981) (38,211)
Share of operating costs in equity accounted investee (64,619) (129,120)
Share of results of equity accounted investee 140,299 229,445
–––––––––––––– ––––––––––––––
Operating profit 1,331,970 2,712,769
Finance income 16,929 19,432
F inance costs (73,135) (111,441)
–––––––––––––– ––––––––––––––
Profit before tax for the period 1,275,764 2,620,760
Current income tax expense (316,981) (690,638)
Deferred tax credit 24,874 328,750
–––––––––––––– ––––––––––––––
Profit and total comprehensive income for the period 983,657 2,258,872
Earnings per share:
Basic (USD) 0.013 0.034
Page | 11INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period from 8 December 2022 (date of incorporation) to 30 June 2023
Share Retained Total
Capital earnings equity
$’000 $’000 $’000
Balance at incorporation 50 - 50
Additional shares issued upon Group Reorganization 19,187,805 - 19,187,805
Profit and comprehensive income for the period - 2,258,872 2,258,872
Balance at 30 June 2023 –––––1–9–,–1–8–7–,–8–5–5– ––––2–,–2–5–8–,–8–7–2– ––––––2–1–,–4–4–6–,–7–2–7–
––– ––– ––
Page | 12INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
A s at 30 June 2023 $’000
Assets
Non-current assets
Property, plant and equipment 20,031,670
Intangible assets 94,433
Right-of-use assets 37,404
Investment in equity accounted investees 1,239,885
D To eft ea rl r n eo dn ta-c xu ar sr se en tst assets ––––------------ --4----6-----9----,-–6–––7–––1––
––––---2-----1----,--8----7-----3----,-–0–––6–––3––
Current assets
Inventories 158,409
Trade receivables 152,214
Prepayments and other receivables 144,646
Contract assets 1,270,128
Amounts due from related parties 91,767
C T ao st ha l a c nu dr cr ae sn ht ea qs use ivt as l ents ––––------ --3----,--6----8-----8----,-–7–––0–––0––
Total assets ––––--------5----,--5----0-----5----,-–8–––6–––4––
Equity and liabilities ––––---2-----7----,--3----7-----8----,-–9–––2–––7––
Equity
Share capital 19,187,855
R T eo tt aa il n e eq du ei at ry n ings ––––--------2----,--2----5-----8----,-–8–––7–––2––
Non-current liabilities ––––---2-----1----,--4----4-----6----,-–7–––2–––7––
Lease liabilities 27,830
D To ecta ol m n mo in s- sc iou nrr ine gn pt rli oa vb isil ioit nie s ––––--------2----,--2----0-----5----,-–7–––8–––3––
Current liabilities ––––--------2----,--2----3-----3----,-–6–––1–––3––
Shareholder loans 1,350,000
Trade and other payables 632,713
Amounts due to related parties 1,623,633
Lease liabilities 9,056
I T no ct oa ml c eu tr ar xe pn at y l ai bab lei lities ––––---------------- --8-----3----,-–1–––8––5–––
Total liabilities ––––--------3----,--6----9-----8----,-–5–––8–––7––
Total equity and liabilities ––––--------5----,--9----3-----2----,-–2–––0–––0––
––––---2-----7----,--3----7-----8----,-–9–––2–––7––
Page | 13INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS
FOorP EthReA TpIeNrGi oAdC TfrIVoImTI E8S December 2022 (date of incorporation) to 30 June 2023 $’000
Profits after tax for the period 2,258,872
Adjustments for:
Depreciation on property, plant and equipment 495,892
Depreciation on right-of-use assets 4,107
Amortization of intangible assets 11,518
Allowance for slow moving and obsolete inventories 11,465
Share of results of equity accounted investees (229,445)
Share of operating costs of equity accounted investees 129,120
Deferred tax credit (328,750)
Current income tax expense 690,638
Finance income (19,432)
N Fe it n aca ns ch e cfl oo sw tss from operating activities before changes in working capital ––––––----- -1-----1----1-----,--4-––4–––1–––
3,135,426
Changes in working capital:
Increase in inventories (46,304)
Increase in trade receivables (1,341,942)
Increase in prepayments and other receivables (144,646)
Increase in amounts due from related parties (24,306)
Increase in trade and other payables 122,228
C Ia ns ch r ef alo sew is n f ar mom ou o np tse r da ut ei n tog ra ec lt ai tv ei dti pes a rties ––––––-1-----,-3-----4----5-----,-6-–––9–––0––
3,046,146
N Te at x c ea ss ph a f il do ws generated from operating activities ––––––-(---6-----0----7-----,-4----–5–––3–––)–
INVESTING ACTIVITIES ––––––-2-----,-4-----3----8-----,-6-–––9–––3––
Payments for purchase of property, plant and equipment (307,276)
Dividends received 167,147
N Fe it n aca ns ch e if nlo cw oms eu sed in investing activities ––––––------------1----9-----,-4-–––3–––2––
FINANCING ACTIVITIES ––––––-(---1-----2----0-----,-6----–9–––7–––)–
Shareholder loans 1,350,000
Share capital 50
Repayment of lease liabilities (9,021)
N Fe it n aca ns ch e cfl oo sw tss p g ae idn erated from financing activities ––––––---- --(---5----6-----,-8----–6–––5–––)–
NET INCREASE IN CASH ––––––-1-----,-2-----8----4-----,-1-–––6–––4––
3,602,160
CC aA sS hH
a
A ndN D
ca
C shA S eH
qu
E ivQ aU leI nV tA
s
L aE riN siT nS g, oA nT
G
T rH ouE
p
E RN eD
o
rO gF
a
nT iH zaE
ti
P onE RIOD –––––3–---,--6-----8--8---8-6----,-,7-5-––0–4––0–0––
––––––-----------------------––––––––
Page | 14Dividend Policy
The Company’s ability to pay dividends is dependent on several factors, including the availability of
distributable reserves, capital expenditure plans and other cash requirements in future periods. Any
level or payment of dividends will depend on, among other things, future profits and the business plan
of the Company, at the discretion of our Board of Directors and ultimately shareholder approvals.
The Company is targeting to pay a fixed dividend amount of $1,625 million in the fourth quarter of 2023
in respect of the first half of the year ended December 31, 2023, and a further $1,625 million in the
second quarter of 2024 in respect of the second half of the year ended December 31, 2023.
Thereafter, we expect to grow the annual target dividend amount from $3,250 million (which is equal
to the annualized dividend for fiscal year 2023) by a growth rate of 5% per annum on a dividend per
share basis over the period 2024-2027.
This progressive dividend policy is designed to reflect our expectation of strong cash flow and our
expected long-term earning potential, while allowing us to retain sufficient flexibility to fund continued
investment in long-term growth opportunities. In addition, the Company expects that the Board of
Directors will also consider market conditions, the then-current operating environment in the markets
in which the Company operates and the outlook for the ADNOC Group’s business.
Page | 15Earnings Webcast and Conference Call
ADNOC Gas will host an earnings webcast and conference call followed by a Q&A session for investors
and analysts on Monday, August 7, 2023, at 3pm UAE time / 12pm BST time.
here.
The call will be hosted by Ahmed Alebri (CEO) and Peter van Driel (CFO). Interested parties are invited
Investor
to join the call by clicking
Relations section .
A replay and transcript will be made available following the event, accessible from the
of ADNOC Gas’ website
Third Quarter 2023 Results
We expect to announce our third quarter 2023 results on or around November 14, 2023.
Contacts
Zoltan Pandi
Vice President, Investor Relations
zpandi@adnoc.ae
Richard Griffith
Vice President, Investor Relations
rgriffith@adnoc.ae
Abdulla Al Hammadi
Manager, Investor Relations
abdullah.hammadi@adnoc.ae
August 4, 2023
ADNOC Gas plc
Page | 16Appendix: Glossary
Financial Terms
EBITDA
Net debt
represents Earnings Before Interest, Tax, Depreciation and Amortization
is calculated as total interest-bearing debt less cash and bank balances (including term
Net debt to EBITDA
deposits with banks) adjusted for lease liabilities.
ratio is calculated as interest-bearing net debt as of the end of the period presented,
Capital Employed
divided by EBITDA for the twelve months ended on the last day of the period presented.
Return on Capital Employed
is calculated as the sum of total assets minus non-interest-bearing current liabilities.
is calculated as operating profit for the twelve months ended on the last
day of the period presented divided by capital employed on the last day of the period presented.
Leverage
Operating Profit is defined as profit excluding financing, tax and income and expenses from investments.
ratio is calculated as (a) interest-bearing net debt, divided by (b) the sum of interest-bearing
net debt plus total equity.
Return on Equity is calculated as profit for the period for the twelve months ended on the last day of the
Operating Working Capital
period presented divided by total equity on the last day of the period presented.
is calculated as current assets excluding cash and bank balances minus
Operating Cashflows
current liabilities excluding lease liabilities.
are Net cash generated from operating activities as stated in the cash flow.
Free Cash Flow
statement.
is calculated as net cash generated from operating activities less payments for purchase
Opex
of property & equipment and advances to contractors and finance income received.
represents Operating expenditure that includes direct cost and general and administrative
expenses excluding depreciation, amortization and impairment as stated in the statement of profit or
Capital Expenditure
loss and other comprehensive income.
is total cash capital expenditure for payments made for purchase of property and
equipment including prepaid delivery payments as stated in the cash flow statement.
All financial terms have meaning as defined in the International Financial Reporting Standards (“IFRS”)
IFRS
unless otherwise stated.
are accounting standards issued by the IFRS Foundation and the International Accounting
Standards Board (IASB). They constitute a standardized way of describing the company's financial
performance and position so that company financial statements are understandable and comparable
2022 Unaudited Pro-Forma Results
across international boundaries.
have been prepared for illustrative purposes only and are based
on available information and ce rtain assumptions and estimates that we believe are reasonable.
Page | 17Cautionary Statement Regarding Forward-Looking Statements
The information contained in this presentation is for background purposes only and does not purport
to be full or complete. No reliance may or should be placed by any person for any purposes whatsoever
on the information contained in this presentation or on its completeness, accuracy or fairness. The
information in this presentation is subject to change. No obligation is undertaken to update this
presentation or to correct any inaccuracies, and the distribution of this presentation shall not be
deemed to be any form of commitment on the part of ADNOC gas plc and its subsidiaries (“ADNOC Gas”)
to proceed any transaction or arrangement referred to herein. This presentation has not been approved
by any competent regulatory authority. This presentation does not constitute or form part of any offer
or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any shares or
any other securities nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be
relied on connection with or act as an inducement to enter into, any contract or commitment
whatsoever. Investors should not purchase any shares on the basis of the information contained in this
presentation. distribution of this presentation and other information may be restricted by law and
persons into whose possession this presentation, any document or other information referred to herein
comes should inform themselves about, and observe, any such restrictions. Any failure to comply with
these restrictions may constitute a violation of the securities laws of any such jurisdiction. This
presentation has not been reviewed, verified, approved and/or licensed by the Central Bank of the
United Arab Emirates (the “UAE”), the Securities and Commodities Authority of the UAE and/or any
other relevant licensing authority in the UAE including any licensing authority incorporated under the
laws and regulations of any of the free zones established and operating in the territory of the UAE,
including the Financial Services Regulatory Authority, a regulatory authority of the Abu Dhabi Global
Market, and the Dubai Financial Services Authority, a regulatory authority of the Dubai International
Financial Centre, or any other authority in other jurisdiction. None of Abu Dhabi National Oil Company
(ADNOC) P.J.S.C (“ADNOC”), ADNOC Gas and/or any of their respective subsidiary undertakings,
affiliates or any of their respective directors, officers, employees, advisers, agents or any other person(s)
accepts any responsibility or liability whatsoever for, or makes any representation or warranty, express
or implied, as to the truth, accuracy, completeness or fairness of the information or opinions in this
presentation (or whether any information has been omitted from this presentation) or any other
information relating to ADNOC Gas associated companies, whether written, oral or in a visual or
electronic form, and howsoever transmitted or made available or for any loss howsoever arising from
any use of this presentation or its contents or otherwise arising in connection therewith. If this
presentation contains “forward looking” statements, beliefs or opinions, including statements with
respect to the business, financial condition, results operations, liquidity, prospects, growth, strategy and
plans of ADNOC Gas, and the industry in which ADNOC Gas operates. These forward-looking statements
involve known and unknown risks uncertainties, many of which are beyond ADNOC Gas’ control and all
of which are based on ADNOC Gas’ current beliefs and expectations about future events. Forward
looking statements are sometimes identified by the use of forward-looking terminology such as
“believes”, “expects”, “may”, “will”, “could”, “should”, “shall”, “risk”, “intends”, “estimates”, “aims”,
“plans”, “predicts”, “continues”, “assumes”, “positioned” or “anticipates” or the negative thereof, other
variations thereon or comparable terminology or by discussions of strategy, plans, objectives, goals,
future events or intentions. These forward-looking statements include all matters that are not historical
facts and involve predictions. Forward looking statements may and often do differ materially from
actual results. They appear in a number of places throughout this presentation and include statements
regarding the intentions, beliefs or current expectations of the directors or ADNOC Gas with respect to
future events and are subject to relating to future events and other risks, uncertainties and assumptions
relating to ADNOC Gas’ business, concerning, amongst other things, the results of operations, financial
condition, prospects, growth and strategies of ADNOC Gas and the industry in which it operates. No
Pasasguer a| n1c8e can be given that such future results will be achieved; actual events or results may differmaterially as a result of risks uncertainties facing ADNOC Gas. Such risks and uncertainties could cause
actual results to vary materially from the future results indicated, expressed, or implied in such forward-
looking statements. Forward-looking statements contained in this presentation speak only as of the date
of this presentation. ADNOC, ADNOC Gas and/or their respective affiliates, expressly disclaim any
obligation undertaking to release publicly any updates or revisions to any forward-looking statements
conta ined in this presentation to reflect any change in its expectations or any change in events,
c onditions circumstances on which such statements are based unless required to do so by applicable
law.
Page | 19 | neutral |
26 October 2023Mashreq’s Net Profit surges 122% to AED 5.8 billion in the first
9 months of 2023 driven by robust income growth and low risk cost
• Net interest income surges by 82%, benefiting from balance sheet growth, healthy client margins, while non-interest income
shows a strong increase of 8.1% year on year.
• Balance sheet growth is fuelled by Loans and Advances growth (9.9% year to date) and customer deposits growth (16.7% year to date).
• Capital adequacy ratio of 18.6% reaffirms robust capital position in a dynamic market, while ROE increases to 32.1%.
Mashreq announces its financial results for 9M 2023 continuing its strong
sustainable growth trajectory and enhancing shareholder value with an 122%
Earnings per Share of AED 28.75. YoY Net Profit Growth
Key highlights:
5.8 billion
1. Operating Income & Net Profit
Net Profit (AED)
• The increase in operating income and net profit is primarily attributed to a significant
82% increase in net interest income. This growth is a result of several factors,
including the expansion of our balance sheet, healthy client margins, and the prevailing 18.6%
high-interest rate environment. Additionally, our non-interest income has reached
Capital Adequacy Ratio
AED 2.3 billion, marking a notable 8.1% year-on-year growth in 9M 2023.
• The bank has demonstrated a positive jaws ratio of 34.8% in 9M 2023, and the
Cost-Income ratio has improved by over 8% year-on-year. This indicates effective
73.1%
control over operating costs while enabling continued investments in enhancing our
client experience, risk management and supporting business growth.
Operating Profit Growth
• Operating profit has surged from AED 3.2 billion to AED 5.6 billion in 9M 2023,
representing a remarkable 73% increase compared to the same period in 2022.
• The allowance for impairments has experienced a net release of AED 341 million, 9.9%
driven by a decrease of 69% year-on-year in low-risk charges, amounting to
AED 244 million. YTD Loans Growth
• Mashreq’s Net Profit has soared to AED 5.8 billion for 9M 2023, a substantial
increase of 122% year-on-year. This performance is attributed to our successful
16.7%
growth strategy, commitment to customer excellence, strong operating performance,
efficient cost management, and prudent risk management capabilities. YTD Customer Deposits Growth
(CASA 63%)
• Return on Equity (ROE) at record-high of 32.1% in 9M 2023, doubling compared to
9M 2022.
2. Liquidity & Capital position 1.5%
• High Liquidity denoted by a Liquid Assets ratio of 32.3% and an efficient Liquidity NPL Gross Loans Ratio
Coverage Ratio of 126.6% as of September 2023
• Capitalization level remains robust with the Capital adequacy ratio at 18.6%, Tier 1
Capital ratio at 16.3% and CET1 ratio at 15.6% as of September 2023 32.1%
Return on Equity
3. Credit Environment & Asset Quality
• Overall loan portfolio quality has improved significantly with gross impairments to 3.8%
gross assets at just 0.2% (0.8% in 9M 2022)
• The Non-Performing Loans to Gross Loans ratio declined to 1.5% as of end of Return on Assets
September 2023 (2.2% as of December 2022) and is one of the lowest in the market.
• Total provision for loans and advances reduced to AED 4.0 billion in September 2023
29.1%
from AED 4.8 billion in December 2022 and coverage ratio improved to 222.9% as
on 30th September 2023 (190.8% in December 2022)
Cost to Income Ratio
Management Discussion & Analysis Report | 2H.E. Abdul Aziz Al Ghurair
Chairman of Mashreq
“The UAE banking sector continues to demonstrate remarkable resilience and growth,
laying a strong foundation for the entire financial landscape of the country. Our recent
achievement, a remarkable 122% year-on-year surge in net profits, stands as a testament
to Mashreq’s enduring strengths and forward momentum. However, our vision extends
beyond numbers. At Mashreq, we are firm in spearheading the region’s sustainability
journey by offering tailored financial solutions that catalyse the transition to a greener
economy, paving the way for the UAE’s goal of Net Zero by 2050. Through our association
with COP28, we reiterate our dedication to combating climate change and championing a
sustainable tomorrow. It is a time of reinvention, of looking ahead, and ensuring that as
leaders in the banking industry, we not only drive profits but also champion the cause of a
sustainable future for all.”
Management Discussion & Analysis Report | 3Ahmed Abdelaal
Group Chief Executive Officer
“Mashreq’s remarkable financial performance this year is a clear reflection of our relentless
commitment to innovation and putting our customers first. The significant growth in net
profit to AED 5.8 billion in the third quarter, spurred by an 82% increase in net interest
income, underlines our strength and adaptability in an ever-changing financial landscape.
Internationally, we continued to see the benefits of our diversified business model and
strong balance sheet growth and our digital strides in Pakistan and licensing in Oman
usher in a new era of exciting global growth. Our digital transformation continues to gain
momentum with strategic partnerships with the likes of Alipay through NeoPay, enhancing
our position in the digital banking revolution.
However, our commitments extend beyond business. Through our alliance with the
Science-Based Targets Initiative (SBTi), we are expanding our environmental responsibility,
solidifying our position at the frontline of industry sustainability, and underlining our
pledge to a Net-Zero future.
Looking ahead, our strategy is multifaceted. Beyond financial investment, we aim to
elevate the customer experience, fortify our security measures with cutting-edge fraud
prevention, and optimize operations through automation. We are enthusiastic about
amplifying our digital capabilities, especially by harnessing AI and nurturing flagship digital
platforms like Neo and NeoBiz. Our journey has been commendable, but our vision remains
expansive, awaiting the countless possibilities the future holds.”
Management Discussion & Analysis Report | 49M 2023 Financial Highlights
Quarterly Trend
Income statement (AED mn) 9M Δ% 3Q 2Q 3Q Δ%
2023 2022 YoY 2023 2023 2022 QoQ YoY
Net Interest Income & Income
5,621 3,088 82.0 2,005 1,870 1,246 7.2 60.9
from Islamic Financing
Fee and commission 1,195 1,040 14.9 319 293 308 8.6 3.5
Investment Income 1 27 (97.9) (3) (15) 23 (78.4) NM
Insurance, FX & Other Income 1,090 1,048 4.0 460 458 429 0.3 7.2
Total Operating Income 7,907 5,203 52.0 2,780 2,607 2,005 6.7 38.7
Operating Expenses (2,304) (1,967) 17.1 (853) (690) (728) 23.6 17.2
Operating Profit 5,603 3,236 73.1 1,927 1,917 1,277 0.5 50.9
Impairment Allowance 341 (471) NM 395 43 (30) 826.2 NM
Tax Expense (111) (94) 17.6 (48) (34) (33) 42.9 46.3
Non-Controlling Interest (65) (73) (11.0) (22) (19) (24) 13.7 (10.5)
Net Profit for the Period 5,768 2,598 122.0 2,252 1,906 1,189 18.1 89.3
EPS [AED] 28.75 12.95 122.0 11.23 9.50 5.93 18.1 89.3
Sep Sep Δ% Sep Jun Dec Δ%
Balance Sheet (AED mn) 2023 2022 YoY 2023 2023 2022 QoQ YTD
Total Assets 218,342 187,587 16.4 218,342 210,964 197,245 3.5 10.7
Loans and Advances 99,275 91,326 8.7 99,275 94,956 90,303 4.5 9.9
Customer Deposits 132,864 109,430 21.4 132,864 126,778 113,806 4.8 16.7
Shareholder’s Funds* 26,983 22,111 22.0 26,983 25,260 23,599 6.8 14.3
Sep Sep Δ bps Sep Jun Dec Δ bps
Key Ratios (%) 2023 2022 YoY 2023 2023 2022 QoQ YTD
CAR (Capital Adequacy Ratio) 18.56 15.18 338 18.56 18.00 16.02 56 254
Tier 1 Ratio 16.30 14.03 227 16.30 15.71 13.71 60 259
CET 1 Ratio 15.63 13.32 231 15.63 15.01 13.01 61 262
Loan-to-Deposits 74.72 83.46 (874) 74.72 74.90 79.35 (18) (463)
Return-on-Assets** 3.83 2.01 183 3.83 3.58 2.10 25 173
Return-on-Equity** 32.07 16.78 1,529 32.07 30.22 17.54 184 1,453
* Equity attributable to owners of parent including noteholders of the Group
** Annualised
Management Discussion & Analysis Report | 5Exhibits
Operating Income (AED Mn) Net Profit (AED Mn)
+52.0% +122.0%
7,907 5,768
5,203
2,598
9M 2022 9M 2023 9M 2022 9M 2023
Loans (AED Mn) Deposits (AED Mn)
+9.9% +16.7%
132,864
99,275
90,303
113,806
Dec’22 Sep’23 Dec’22 Sep’23
Capital Adequacy Ratio (%) CET 1 Ratio (%) Tier 1 Ratio (%)
18.6 16.3
18.0
17.4 15.1 15.015.7 15.6
16.0 14.4
15.2 14.0 13.7
13.3
13.0
Sep’22 Dec’22 Mar’22 Jun’23 Sep’23 Sep’22 Dec’22 Mar’22 Jun’23 Sep’23
Coverage Ratio (RHS %) NPL Ratio (LHS %)
%
8 250
237.6 222.9 200
6 231.2
190.8 150
149.7
4
100
3.6
2 2.2 1.9 1.7 1.5 50
0 0
Sep’ 22 Dec’22 Mar’23 Jun’ 23 Sep’ 23
Management Discussion & Analysis Report | 69M 2023 Awards
World Finance Great Place to Work for the second
consecutive year
• Best Retail Bank in the UAE
• Best Private Bank • Mashreq Global Network in India
The Digital Banker Middle East & Africa Finnovex Middle East Awards 2023
Retail Banking Innovation Awards 2023
• Excellence in Neo Banking
• Best Hybrid Wealth Management
Offering
• Outstanding Digital Transformation by
a Islamic Retail Bank The Banker – Investment Banking
• Best Islamic Loan Offering of the Year Award 2023
• Best Islamic Retail Bank
• Best Customer Centric Business Model • Syndicated Loans
• Best Digital Bank
Finance Derivative
The European Global Banking & Finance
• Best Retail Bank UAE 2023
Awards 2023 • Best Customer Centric Retail Bank
UAE 2023
• Best Bank for sustainable Finance 2023
• Best Bank For Online Product Offerings
• Best Performing Private Bank 2023
UAE 2023
• Most Innovative Digital Bank for Business
• Best Bank For Savings Solution Provider
Banking 2023
UAE 2023
• Best SME Bank UAE 2023
UAE IAA
• Leading Practices in Internal Audit The Asian Banking & Finance Retail Banking
Awards 2023
• Digital Banking Initiative of the Year – UAE
The Banker Top 100 Arab Bank Rankings • Service Innovation of the Year - UAE
• New consumer lending product of
• Mashreq Bank ranked 1st Best Performing
the year – UAE
Bank in the UAE
• Wealth Management Platform of
• Mashreq Bank ranked 1st in the Middle East
the Year - UAE
for Pre-Tax profit growth
• Mashreq Bank ranked 1st in the Middle East
for Return On Capital over 15%
Management Discussion & Analysis Report | 79M 2023 Awards
Forbes Middle East Euromoney Awards for Excellence
• Top 100 listed companies in the Middle • Best Digital Bank in the Middle East
East for 2023 • Best Bank for Digital Solutions
LEED Gold Certified by the U.S. Green The Asian Banking & Finance Retail Banking
Building Council Awards 2023
• Wealth Management Platform of
the Year - UAE Best Bank for Digital
Solutions
International Banker Awards
• Best Banking CEO of the Year Middle East
2023
• Best Commitment to ESG Principles UAE LEED Zero Energy certification by the U.S.
2023
Green Building Council
Infosys Finacle Innovation Awards 2023
MEED’s MENA Banking Excellence
• Business Model innovation - Federal- Awards 2023
Mashreq Neo partnership for end-to-end
digital NR onboarding journey • Best Private Bank UAE
Global Business Magazine
MEA Finance Summit & Awards 2023
• Best Mobile Banking Application UAE 2023
• Best Innovation in Retail Banking’
• Most Innovative Corporate Bank UAE 2023
• Digital Banking Innovation of the
• Best Online Services Bank UAE 2023
Year - UAE’.
Global Private Banking Innovation Global Finance – The Innovators 2023
Awards 2023 • Most Innovative Bank in the Middle East
• Best Innovation Labs for 2023 - Mashreq
• Best Private Bank for Funds
Wholesale Digital Innovation Lab
• Best Private Bank – UAE
• Best Family Office Offering
Management Discussion & Analysis Report | 89M 2023 Awards
EMEA Finance Achievement Awards 2022 Euromoney Islamic Finance Awards 2023
• Best restructuring house in the • Mashreq Al Islami - Best Islamic Digital
Middle East Bank- Global
Wealth Tech Awards 2023 MENA Banking Excellence Awards 2023
• Best private bank for digital customer • Best Private Bank – UAE
service in the Middle East
• Most Innovative Client Lifecycle
Management of the Middle East
Bonds, Loans & ESG Capital Markets
Africa Award
2023 Middle East & North Africa • Financial Institutions Debt House
of the Year
Stevie® Awards
• Gold Stevie Trophy for Innovation
Management in the Financial Industries
Award by Visa
• ‘Best Client Experience’ for achieving the
Forbes Regions Most Valuable Banks highest transaction approval rates in the
UAE for the year of 2022.
2023 list.
• Mashreq is among the Top 50 most
valuable banks in the MENA region
The Banker Magazines “Deals of the Year
Awards 2023”
Euromoney Trade Finance 2023 • Deal of the Year - Africa(Nigeria) - FIG -
African DFI debut bond issue
• Market Leader in the UAE
• Deal of the Year - Middle East - FIG
• Best Service in Bahrain
-Mashreq’s inaugural Tier 2 issuance
• Best Service in Bangladesh
• Deal of the Year - Middle East - High Yield
• Best Service in Kuwait
and Leveraged Finance -AIR’s $525m
• Best Service in Qatar
syndicated term facilities
• Best Service – Products – Africa
• Deal of the Year - Middle East -
• Best Service - Industrial Goods – in
Restructuring - Gargash’s refinancing,
Middle East
repricing and restructuring solution
• Best Service - Retail Providers – in
Middle East
• Best Service – Products – In Egypt
Management Discussion & Analysis Report | 9For media enquiries, please contact:
Rana AlBorno
Public Relations, Mashreq
Tel: +971 4 6083629
Email: RanaAlB@mashreq.com
For investor relations enquiries, please contact:
Ali Zaigham Agha
Investor Relations, Mashreq
Tel: 04 2077543
Email: AliAgha@mashreq.com
Management Discussion & Analysis Report | 10 | neutral |
Tabreed Releases its H1 2022 Financial Results, Steadily
Continuing its Expansion Across the Region
UAE’s original district cooling and energy services provider goes from strength-to-strength
Revenue and profits boosted by portfolio expansion during 2021
Abu Dhabi, United Arab Emirates – 27 July 2022: Tabreed, the UAE’s leading district cooling
provider, yesterday released its consolidated financial results for the first six months of 2022,
reporting a net profit of AED 240.4 million – an increase of 3% compared to its H1 2021
performance.
Starting the year as it means to go on, Tabreed practically doubled the size of its concession
capacity in Oman with the acquisition of the district cooling plant that services Al Mouj, the
Sultanate’s most prestigious new real estate development. Tabreed’s portfolio in Oman now
includes seven plants and Al Mouj represents the company’s biggest project there, evidence of
its desire to drive further investment in this important territory.
Building on the expansion earlier in the year in the UAE, Bahrain and Oman, new connections
were added in the emirates during the second quarter of 2022, increasing Tabreed’s total
connected capacity to 1,241,331 Refrigeration Tons (RT).
Other notable developments during the first six months of 2022 were the company’s high-
profile presence, participation and partnership with the inaugural World Utilities Congress at
Abu Dhabi’s National Exhibition Centre and the commencement of operations in Egypt,
heralding an exciting new phase for Tabreed as it enters markets and territories beyond its
historical boundaries.
Financial highlights – six months ended 30 June 2022:
• Group revenue increased by 12.3% to AED 975.7 million (H1 2021: AED 869.0 million)
• EBITDA increased by 13.9% to AED 589.3 million (H1 2021: AED 517.6 million)
• Net profit attributable to the parent increased by 3.0% to AED 240.4 million (H1 2021:
AED 233.5 million)
Operational highlights – six months ended 30 June 2022:
• Total connected capacity reached 1,241,331 Refrigeration Tons (RT)
• 31,235 Refrigeration Tons (RT) of new customer connections added, with load additions
of 12,435 RT in the UAE, 18,300 RT in Oman and in Bahrain were increased by RT 500 to
reach RT 33980• Tabreed achieved a record 15,784,821 hours worked without a single lost time incident
(LTI), the most recent occurring in July 2015
Commenting on the company’s H1 results, Khaled Abdulla Al Qubaisi, Tabreed’s
Chairman, said: “It’s another remarkable result for Tabreed but not at all surprising, as the
carefully considered and planned trajectory for this incredible pillar of UAE industry is coming
together precisely as we envisaged. It has been a remarkable six months of geographical
expansion, increased public awareness and making good on long-term objectives. These
excellent financial results follow hot on the heels of Tabreed publishing its highly anticipated
2021 ESG Report, which demonstrates the company’s continuous, laser-like focus on benefiting
stakeholders, staff and communities alike. As Tabreed’s Chairman I am proud of its relentless
commitment to quality and know it will go from strength-to-strength over the coming months
and years.”
Eng. Khalid Abdulla Al Marzooqi, Tabreed’s Chief Executive Officer, added: “We are now
seeing the benefits and reaping the rewards of Tabreed’s portfolio expansion during 2021,
particularly with our 100 percent acquisition of the hugely important plant exclusively servicing
Al Maryah Island in Abu Dhabi. The first half of 2022 is an accurate indication of where this
remarkable company is heading and, in the near future, we will see other long-term strategic
plans and investments come to fruition. Tabreed is the UAE’s original district cooling company
and its expertise is simply unrivalled anywhere in the world. We play a very positive role in this
country’s drive for sustainability and that’s the best possible news for our investors, our people
and our ever-expanding client base.”
-ENDS-
About National Central Cooling Company PJSC (Tabreed)
Tabreed provides essential and sustainable district cooling services to iconic developments such
as the Burj Khalifa, Sheikh Zayed Grand Mosque, Louvre Abu Dhabi, Ferrari World, Emirates
Towers, Yas Island, Al Maryah Island, The Dubai Mall, Dubai Opera, Dubai Metro, Bahrain
Financial Harbor and the Jabal Omar Development in the Holy City of Makkah. The company
owns and operates 86 plants in its portfolio across the GCC, including 75 in the United Arab
Emirates, three in the Kingdom of Saudi Arabia, seven in Oman and one in the Kingdom of
Bahrain, in addition to other international projects and operations.
Tabreed is a leading driver of progress for people, communities and environments around the
world towards a more sustainable future. Founded in 1998 and publicly listed on the Dubai
Financial Market, it is one of the UAE’s strongest growth companies. Through its extensive
regional and international operations, industry-leading reliability and efficiency, R&Dprogrammes and investment in AI technology, Tabreed further solidifies its position as the
industry's global leader. In addition to district cooling, Tabreed’s energy efficiency services
extend the company’s sustainability impact, helping businesses and organisations to improve
their overall energy consumption, in turn reducing CO emissions and assisting in the
2
achievement of carbon neutrality objectives. | positive |