Management discussion and analysis for the period ended 30 June 2022

www.wahacapital.ae

Al 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

50,511

associates and joint ventures

31,263

50,511

31,263

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

398,658

continued operations

105,123

(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

2

Total 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

3

Net 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-monthperiod 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)

Public Markets

(54)

180

320

94

Private Investment

(2)

10

17

28

Waha Land

9

Land

17

9

20

Finance costs

(10)

costs

(20)

(18)

(33)

Other Corp. Costs

(35)

6

Costs

(69)

Net Profit

(59)

154 (loss)

(22)

265

87

Q2 2021

Q2 2022

H1 2021

H1 2022

4

Balance 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:

  1. 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.
  2. 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
    1. million from private investments comprising investment of AED 361.6 million in unquoted funds and other investments.
  4. Cash and bank balances of AED 666.0 million compared to AED 1,421.3 million in 2021, a decrease of AED
    1. 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.

5

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Al Waha Capital PJSC published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2022 11:19:06 UTC.