GFH Financial Group Investor Seminar Regional Financial Group With High Growth Potential & Excellent Prospects 2 May 2018 1 |
GFH ’ s Strategy Has Been to Transform Into a Financial Group with an Integrated Product Offering Across Multiple Geographies Financial / Ultra Other / Investment HNWIs Public Institutions ~ 15% 14% 11% 60% Direct Investments Consumer Bahrain Financial Private Education Finance Harbor Equity Bahrain ’ s Leisure & Corporate Al Areen Hospitality Real Estate Banking Development Building Private Materials California Asset Banking Village (Dubai) Management Asset Monetization Infrastructure to Expansion into Cross-border investments in GCC, realize Other Investment M&A Africa & India value Banking Products Source: Company data & GFH Analysis. 2 |
GFH ’ s Fragmented Shareholder Base Has Been Supported by a Strong Set of Anchor Shareholders from Abu Dhabi, Who Have Supported Business Growth & Strategy … Has Been Supported by ADFG ’ s Fragmented 2014 Shareholder Base (No Shareholder Owning >5%) … Acquisition of a Sizeable Stake in GFH 592 Bahraini Total Shares Held Shareholders on DFM is 74.0% 3,766 Other Shareholders 3,159 Emirati 2% Shareholders ~ 15% 30% Financial / Investment 42% Institutions 14% 3% 60% 11% 23% 360 Other GCC Shareholders Ultra HNWIs Other / 4,782 Kuwaiti Public Shareholders GFH Financial Group ’ s ultimate aim is to drive market price towards fair value, thus benefiting shareholders from such value uplift Source: Company data & GFH Analysis. 3 |
25% Growth in Total Assets and Funds Under Management to $6.5 billion with Total Shareholder Distributions of $215m and Cumulative Profitability of $320 Million 6.5 25% CAGR in Assets & Funds Under Management 3.3 Since 2014 ($bn) 2014 2017 215 70 85 $215m in Total Shareholder 60 Distributions over 2016-2017 ($m) 2016 2017 Share Total Dividend Dividend Buyback Shareholder Distribution Cumulative total profitability across 2016-2017 of $320 million Source: Company data & GFH Analysis. 4 |
Significant Exits Completed Over the Past 24 Months with Total Exit Value of $1.5 billion, Coupled with Strong New Transactions ’ Track Record in Excess of $1.0 billion $1.5 billion Total of 8 exits Total of 8 Exited Transactions with a Total Exit Value to Whilst Exceeding Investor GFH Investors of $1.5 Return Expectations billion Exit Value $1.0 billion Total of 10 New Transactions with Total of 10 New Transaction Project Values In Excess Across Multiple Asset Classes of Total $1.0 billion Project Value Source: Company data & GFH Analysis. 5 |
GFH Remains the Highest Traded Stock on the Dubai Financial Market Over the Past 3 Years, Thereby Offering Significant Liquidity to its Shareholders … And is Consequently the Highest Traded GFH Represents 21% of the Total Value Traded on the DFM Over the Past 3 Years … Stock Across the DFM (AED Billion) 52.9 Other 47.4 Stocks 15% 21% 24.9 5% 21.8 6% 19.7 7% 19% 8% 17.7 9% 10% 15.9 11.2 Source: Bloomberg as of 12 March 2018. 6 |
Substantial Value Realization Potential in GFH ’ s Shares Compared to Current Book Value and Market Value Levels Outstanding 3,682 3,682 3,682 Shares (m) Value Per 2.98 1.15 1.26 Share (AED) 136% upside 2,988 1,054 160% upside to Market Value to Book Value 1,335 1,264 1,150 358 241 Commercial Investment Real Direct GFH GFH GFH Banking Banking Estate Investments Fair Current Current (1) Value Book Market Value Value Significant hidden value potential in GFH shares representing substantial upside compared to current book value and market price levels Source: Bloomberg as of 29 April 2018. (1) As per independent Mubasher research on GFH Financial Group. 7 |
Major Strategic Transactions and Disposals with the Aim to Establish a Diversified Base of AuMs by 2020 of $30 billion Current Assets & Funds Under Management Vision 2020: Growth in AuMs to $30 billion Disposal of Direct 1 Investments at Investment Direct Attractive Valuations Banking Investments Private Equity Investment & Asset Mgmt. Securities Banking 20% 10% 2 Major Strategic Transactions 30% 40% Real Estate Insurance Commercial Real 3 Commercial Banking Cash Acquisitions Estate Banking of Financial Businesses The Group aims to maintain total shareholder distribution of 8-10% of Capital Source: Company data & GFH Analysis. 8 |
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