GFH Financial Group Investor Seminar Regional Financial Group With - - PowerPoint PPT Presentation

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GFH Financial Group Investor Seminar

Regional Financial Group With High Growth Potential & Excellent Prospects

2 May 2018

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GFH’s Strategy Has Been to Transform Into a Financial Group with an Integrated Product Offering Across Multiple Geographies

Bahrain Financial Harbor Bahrain’s Al Areen Development California Village (Dubai) Infrastructure investments in GCC, Africa & India Private Equity Real Estate Asset Management Expansion into Other Investment Banking Products Consumer Finance Cross-border M&A Corporate Banking Private Banking

Direct Investments

Asset Monetization to realize value Education Leisure & Hospitality Building Materials Financial / Investment Institutions Ultra HNWIs Other / Public ~ 15% 14% 11% 60%

Source: Company data & GFH Analysis.

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14% 11% 60%

GFH’s Fragmented Shareholder Base Has Been Supported by a Strong Set of Anchor Shareholders from Abu Dhabi, Who Have Supported Business Growth & Strategy

Fragmented 2014 Shareholder Base (No Shareholder Owning >5%)… …Has Been Supported by ADFG’s Acquisition of a Sizeable Stake in GFH

GFH Financial Group’s ultimate aim is to drive market price towards fair value, thus benefiting shareholders from such value uplift

2% 42% 23% 3% 30%

592 Bahraini Shareholders 3,159 Emirati Shareholders 4,782 Kuwaiti Shareholders 360 Other GCC Shareholders 3,766 Other Shareholders Financial / Investment Institutions Ultra HNWIs Other / Public Total Shares Held

• n DFM is 74.0%

~ 15%

Source: Company data & GFH Analysis.

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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

60 85 70 215 2016 Dividend 2017 Dividend Share Buyback Total Shareholder Distribution

$215m in Total Shareholder Distributions

• ver 2016-2017 ($m)

Cumulative total profitability across 2016-2017 of $320 million

25% CAGR in Assets & Funds Under Management Since 2014 ($bn)

3.3 6.5 2014 2017

Source: Company data & GFH Analysis.

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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

Total of 8 exits with a Total Exit Value to GFH Investors of $1.5 billion Total of 10 New Transactions with Project Values In Excess

• f

$1.0 billion

Exit Value $1.5 billion Total of 8 Exited Transactions Whilst Exceeding Investor Return Expectations Total Project Value $1.0 billion

Total of 10 New Transaction Across Multiple Asset Classes

Source: Company data & GFH Analysis.

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GFH Represents 21% of the Total Value Traded on the DFM Over the Past 3 Years… …And is Consequently the Highest Traded Stock Across the DFM (AED Billion) 21% 19% 10% 9% 8% 7% 6% 5% 15%

Other Stocks

11.2 15.9 17.7 19.7 21.8 24.9 47.4 52.9

GFH Remains the Highest Traded Stock on the Dubai Financial Market Over the Past 3 Years, Thereby Offering Significant Liquidity to its Shareholders

Source: Bloomberg as of 12 March 2018.

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Substantial Value Realization Potential in GFH’s Shares Compared to Current Book Value and Market Value Levels

241 358 1,335 1,054 2,988 1,150 1,264 Commercial Banking Investment Banking Real Estate Direct Investments GFH Fair Value GFH Current Book Value GFH Current Market Value

Significant hidden value potential in GFH shares representing substantial upside compared to current book value and market price levels

Outstanding Shares (m) Value Per Share (AED) 3,682 2.98 3,682 1.15 3,682 1.26 160% upside to Book Value 136% upside to Market Value

(1) Source: Bloomberg as of 29 April 2018. (1) As per independent Mubasher research on GFH Financial Group.

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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 Disposal of Direct Investments at Attractive Valuations Vision 2020: Growth in AuMs to $30 billion Major Strategic Transactions Cash Acquisitions

• f Financial Businesses

1 2 3

40% 20% 10% 30%

Real Estate Commercial Banking Investment Banking Direct Investments Commercial Banking Real Estate Investment Banking Securities Private Equity & Asset Mgmt. Insurance

The Group aims to maintain total shareholder distribution of 8-10% of Capital

Source: Company data & GFH Analysis.