#1DFM سوق دبي المالي 9M 2022 Investor Presentation dfm.ae#2A World Class Market Place - Key Figures 9M 2022 Market 576 Capitalization AED BILLION AED BILLION 71 Listed Companies 69.5 Total Traded Value 367 Average Daily Traded Value Foreign Investors 47% Trading Share PERCENT 19% Foreign Ownership PERCENT % of Market Cap COUNT AED MILLION Listed on DFM and NASDAQ Dubai 146 Bonds COUNT & Sukuks Listed on DFM and NASDAQ Dubai with 131 AED BILLION Total Funds Raised (since inception) a value of over USD115 bn Source: DFM analytics. Note: Trading statistics for DFM excludes Nasdaq Dubai. Foreign investors defined as non-UAE investors. 56% Institutional Investors Trading Share PERCENT 2 dfm.ae#3Strong Demographic & Macroeconomic Fundamentals Continued GDP Recovery Post COVID-19 Pandemic 2020 & 2021 Real GDP Growth (%)* Growing Population 2020-2025E Population Annual Growth (%) 6.0 3.1% 2.8% 3.8 3.5 3.3 3.1 3.1 2.9 2.4 2.3% 1.8 2.0% 1.5% 1.2% 0.2% -3.1 -2.7 -2.6 -4.1 -5.4 -5.9 -7.0 Turkey Russia Poland Bahrain S. Africa UAE KSA Qatar 2020 2021 -0.1% -0.1% UAE Kuwait Egypt KSA S.Africa Turkey Qatar Russia Poland Sustained Growth In Non-Oil Economy.... UAE Non-Oil Private Sector PMI in recovery mode post COVID-19 impact. 57 56 56 56 56 54 55 55 55 55 55 56 53 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 50 Separates Expansion from Contraction Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 ...Resulting in a Stable Business Environment UAE ranked 25th on the Global Competitiveness Index (GCI 2019) & ranked 33rd on the 2022 Index of Economic Freedom (1st in the MENA) with a score of 70.2 72.6 76.9 77.6 77.6 77.6 76.2 76.9 70.2 2015 2016 2017 2018 2019 2020 2021 2022 Year Index of Economic Freedom Source: The UAE National Bureau of Statistics, Euromonitor, Bloomberg, World Economic Forum, Emirates NBD, The Heritage Foundation, IMF World Economic Outlook Database, October 2020. *Figures are an estimate. dfm.ae#4Dubai Growth is Driven by a Well Diversified Economy and Strong Trade Activity Dubai GDP Growth* Dubai Direct Foreign Trade Breakdown (AED bn) 6.2% 5.9% 802.1 830.1 828.7 757.3 770.0 711.1 445.6 CAGR 2010-2020 4.0% 3.1% 3.1% 2.7% 2.1% 129.4 123.7 118.9 109.7 125.0 146 169.0 165.1 186.8 176.7 165.7 8% 124.5 95.6 -1% 82.6 514.2 535.6 518.3 470.8 479.2 2015 2016 2017 2018 2019 2020 2021 Q1 2022 440.8 267.4 2% -11.8% 2015 2016 2017 2018 2019 2020 H1 2021 Imports ■Re-Exports Exports Other Sectors 18.8% Oil & Mining 1.6% Hotels & Restaurants 9.6% Manufacturing 8.6% Transportation 11.0% Trade 22.6% Real Estate & Construction 15.3% Financial Sector 12.4% Source: Emirates NBD research, Dubai Investment Development Agency, 2017 Global Investment Report published by UNCTAD, Doing Business World Bank, IMF, Gulf news. * Source: Dubai Statistics Center Q1 2022 as per the latest available data, some GDP growth percentages were revised due to a new national account series issued by the Dubai Statistics Center. 1 Source: Dubai Tourism. 2 Source: DUBAI FDI Results and Rankings Highlights Report 2021, published by Dubai Investment Development Agency (Dubai FDI). Commentary . Main highlights of Dubai economy: • The Emirate of Dubai has reported its budgeted expenses for 2022 to reach AED60 bn. During 2022, Dubai's successful tourism rebound continues to inspire global tourism recovery with the city welcoming 9.12 million international overnight visitors from January to August 20221. With more than AED26 bn in FDI inflows, Dubai ranked first in attracting foreign direct investments in the Middle East and North Africa for 2021, and third globally in FDI capital flows.² Dubai is the 1st regionally and the 19th globally in the Global Financial Centres Index and ranks the 16th among 190 countries in the 2020 Doing Business. Dubai has moved the historical focus on Real Estate and Trade to attract more knowledge intensive projects with a greater focus on Technology. H.H. Sheikh Mohammed bin Rashid Al Maktoum established the Dubai Security Centre which seeks to ensure the proper implementation of international best practices in Dubai as a financial hub. Dubai is placed at the forefront of the global Islamic economy, where the total value of listed Sukuk amounted to AED294 bn - end of Q3 2022. According the IMF, During 2001-2015, USD53.8 bn or 36 percent of all global Sukuk issuances originated in the UAE. 4 dfm.ae#5Investor Reach - Global Connectivity AMERICAS 12%/37% EUROPE 10%/30% MIDDLE EAST AND AFRICA 74%/27% ASIA PACIFIC 4%/6% Snapshot of investor composition with a bigger focus locally and regionally. Snapshot of investor composition with a bigger focus on international investors. REGIONALLY - Direct connectivity to Europe selected regional markets. GLOBALLY ■ Investors in more than 100 countries. - Over 207 nationalities connected. - Connected to leading international depositories. go R 5 dfm.ae#6MARKET STRUCTURE & OFFERING LANDSCAPE OUTREACH & OPPORTUNITY OPERATIONAL HIGHLIGHTS FINANCIAL HIGHLIGHTS 6 dfm.ae#7Dubai's Capital Market Structure DFM established in 2000 as a government owned exchange and in 2007 became the first regional exchange to be publicly listed, Nasdaq Dubai was established in 2005. 2 Exchanges 1 Capital Market Combined Liquidity Pool DISA Dubai Financial Services Authority 33.3% هيئة الأوراق المالية والسلع SECURITIES & COMMODITIES AUTHORITY N Nasdaq Dubai Borse Dubai 66.7% Brokers Nasdaq Dubai Nasdaq Dubai Investors CCP CSD 80.66% المنحلة DFM سوق دبي المالي دبي للإيداع Dubai CSD دبي للمقاصة والإيداع المركزي القابضة DCCD دبي للمقاصة Dubai Clear 7 dfm.ae#8Products and Services Landscape - Key Offerings LISTING OPTIONS ASSET CLASSES POST-TRADE PLATFORM & SERVICES MAIN MARKET EQUITY MARKET Venue for listing and dual listing of Public Companies SECOND MARKET Listing venue for Private Joint Stock Companies GROWTH MARKET Designed for SMEs with more flexible listing requirements (Nasdaq Dubai) PRIVATE MARKET Registry/CSD admission with no trading FIXED INCOME (Bonds and Sukuk) DERIVATIVES MARKET (Futures Contracts) REITS AND ETFS Central Counter Party Clearing CCP Depository Securities Lending and Borrowing SLB Regulated Short Selling Dividend Distribution iVESTOR/myAccount platform IPO Platform AGM Management 8 dfm.ae#9Post-Trade Functions Development DFM PJSC Launched its New CCP and CSD Subsidiaries on 28th April 2020. KEY BENEFITS Enhanced efficiency in operational performance to improve liquidity MAIN IMPACT Maximizing clearing members' capital requirements, adopting international best practices for margins and settlement funds. Higher efficiency in using collateral. Enhanced risk mitigation ° Potential boost of clearing members' liquidity. Enhanced risk management by ring-fencing risk through creating separate legal entities. Compliance with regulations and international best practice Comply with SCA's regulations regarding CCP which requires a separate legal entity for the CCP business license. Comply with SCA's CSD regulations which require a separate legal entity for CSD business license. Dubai CSD LLC is the first licensed CSD in the UAE. Comply with the international best practice recommendations. dfm.ae#10Derivatives - Supporting Investors to Manage Risk 1 3 Index Futures Crude Oil Futures DFM سوق دبي المالي 30 UAE & Regional Single Stock Futures Dubai is the first regional market to offer equity futures on regional equities, allowing investors to hedge and manage their risks. a الشركة السعودية للكهرباء Saudi Electricity Company DFM سوق دبي المالي بنك أبوظبي التجاري ADCB MSCI FTSE Russell DME EMAAR بنك دبي الإسلامي Dubai Islamic Bank ولار ALDAR gfh SHUAA gfh◇ بنك ابوظبي الأول FAB First Abu Dhabi Bank اتصالات etisalat المراعي كيان السعودية saudi kayan Almarai Ka مصرف الإنماء alinma bank مصرف الراجحي Al Rajhi Bank EMAAR Development سابك عن حالك 10 dfm.ae#11MARKET STRUCTURE & OFFERING LANDSCAPE OUTREACH & OPPORTUNITY OPERATIONAL HIGHLIGHTS FINANCIAL HIGHLIGHTS 11 dfm.ae#12Diversification Opportunity-Sector Representation of Dubai's GDP vs DFM DFM's IPO pipeline strategy aims at a better reflection of Dubai's GDP mix. Dubai Real GDP Breakdown - Q1 20221 DFM Sectors Breakdown² - Q3 2022 Unlike the economy, the DFM market is dominated by the Financial sector and the Real Estate and Construction sector. These sectors collectively represent 26.6% of the economy vs. 57.1% of the market capitalisation, by end of Q3 2022. This represents significant opportunities for DFM as there is a diversified pool of sectors and companies to be listed in the future, and a significant opportunity for issuers since investors are looking for diversified sectors to invest in. Oil & Mining 1.6% Hotels & Restaurants 9.6% Manufacturing 8.6% Transportation 11.0% Figures may not add up to 100% due to rounding. Other Sectors 18.8% Trade 22.6% Consumer Staples, 1.6% Telecommunications, 4.7% Transportation, 11.7% Real Estate & Construction 15.3% Real Estate & Construction, 14.3% Financial Sector 12.4% 1 Source: Dubai Statistics Center Preliminary Estimates Q1 2022 as the latest available data. 2 By market cap. Services, 1.8% Industrials, 1.3% Financial Sector, 42.8% Utilities, 21.7% 12 dfm.ae#13Diversified Investor Base - Bringing Together Regional & International Investors Institutional & Foreign Investors Institutional Investors' Trading Share (%) Institutional Ownership (% of Market Cap) 56% 24% FY 2013 Foreign Investors' Trading Share 43% FY 2013 Note: Figures exclude Nasdaq Dubai 9M 2022 47% 70% FY 2013 Retail & HNWI Investors 86% 1 Mn+ 207 9M 2022 Foreign Ownership (% of Market Cap) 16% 19% 9M 2022 FY 2013 9M 2022 Total Investors Nationalities Retail and HNWIs play a key role in liquidity on DFM. 44% of trading is from retail and HNWIS, showing their importance on the market. This includes local and international investors. 13 dfm.ae#14Capital Raising Success Nearly AED131 bn Raised Since Inception in Dubai Funds raised on Captial Markets since Inception to 2022 SELECTED TRANSACTIONS IPOS AED Bn 13.1 46.4 14.4 29.1 28.1 50.0 45.0 7.6 40.0 35.0 2.1 0.01 30.0 25.0 20.0 38.8 15.0 0.5 21.6 28.1 3.1 10.0 13.1 5.0 2000-2004 2005-2009 IPOS 10.8 5.4 2010-2014 2015-2019 2020-2022 Capital Raise ■Convertible Bonds DP WORLD reit ALMAL EMAAR سالك Salik aramex TECOM GROUP هيئة كهرباء ومياه دبي بنك دبي الإسلامي Dubai Islamic Bank Dubai Electricity & Weter Authority Convertible Bonds تبريد EMAAR Capital Raises tabreed TAKAFUL EMARAT الإمارات الإسلامي EMIRATES ISLAMIC ALRAMZ CAPITAL اية العالية المحارك عية Hunan Valxs. CAPITAL الخليج للملاحة القابضة هدية Gulf Navigation Holding Drake & Scull Oil & Gas مصرف عجمان Ajman Bank Jubai Parks AND RESORTS arabtec 14 dfm.ae#15Index Inclusion - Attracting Investors Through Index Representation All the major index providers cover stocks listed on DFM in their relevant local, regional and international indices. Inclusion into additional indices can provide a number of benefits for issuers: Exposure to new type of investment; passive as well as active prominent international funds. Enhancing visibility to international investors. Enhanced valuations. Optimal shareholders mix and diversified investor base. MSCI MSCI UAE MSCI GCC Countries MSCI Emerging Market DDOW JONES Dow Jones GCC Dow Jones MENA Dow Jones Sustainability FTSE Russell FTSE Nasdaq Dubai FTSE Emerging FTSE Global Equity Shari'a DFM سوق دبي المالي DFM General Index DFM Shari'a S&P Global S&P UAE Price S&P UAE Domestic Shari'a S&P Emerging Middle East & Africa 15 dfm.ae#16ESG & Sustainability - a Key Agenda for Investors Dubai aims to become the city with the lowest carbon footprint by 2050. SDGs Global 2021 Ranking UAE ranks highest on SDGs progress in the region. UAE JORDAN UAE leads in ESG reporting to drive market transparency and meet growing investor demands. UAE's energy mix is shifting away from fossil fuels and towards renewable energy (zero emission). OMAN QATAR KSA AED100 bn green fund to make Dubai an environment-friendly city with the least carbon footprint in the world by 2050. BAHRAIN KUWAIT Mohammed bin Rashid Al Maktoum Solar Park is expected to be the largest single-site solar park in the world by 2050. The Dubai and Sharjah 'Sustainable Cities' are the first fully operational sustainable communities in the Middle East. Sustainable Development Report* 71 72 73 94 98 100 113 Country Bahrain Kuwait Qatar Saudi Arabia UAE No. of companies using GRI Standards 4 46 29 34 110 Source: GRI data base. 16 dfm.ae#17Recent Developments - Expanding to Create Further Opportunities IPO Pipeline Plans In late 2021, The Government of Dubai formed the Dubai Securities and Exchange Higher Committee and announced plans to list 10 Government-related companies on the DFM, in line with the Emirate's stated objective of increasing the total market capitalization of its financial markets to AED3 trillion. Foreign Ownership The Government has improved the attractiveness of setting up a business in Dubai by allowing businesses in most sectors to have 100% foreign ownership. Residency Changes The option of obtaining a Golden Visa is not only attracting top talent to Dubai, but also making business owners want to move here. Expanding the Capital Market Free Zone Access on DFM Extending DFM's Main Market IPO to cover and allow companies based in a Free Zone to benefit from raising capital and list on DFM. Nasdaq Dubai Growth Market Dedicated platform for younger and growing companies. Cost efficient mechanism to raise capital and list on Nasdaq Dubai. Equity Futures The first regional market to list Single Stock Futures on regional names to support investors. 17 dfm.ae#18Key Listing Requirements - Variety of Options Available to IPO DFM سوق دبي المالي Nasdaq Dubai Size Mainland Companies AED25 mn paid-up capital Financial Track Record 2 Years Minimum 30% Free Float Profitability Legal Structure Listing Advisor Lock-In Period Advisor Post Listing Profitable for last 2 years Public Joint Stock Company Financial Institution approved by SCA 6 months Main Market Free Zone Companies AED20 mn paid-up capital > USD250 mn 2 Years Minimum 25% Profitable for last 2 years Public Limited Company Financial Institution approved by SCA 6 months Not required 1 Year 3 Years Minimum 25% Not required Public Limited Company Investment Bank Growth Market < USD250 mn Minimum 1 Year Minimum 25% Not required Public Limited Company Compliance Advisor with relevant experience 1 year Not required Not required 3 Years 18 dfm.ae#19MARKET STRUCTURE & OFFERING LANDSCAPE OUTREACH & OPPORTUNITY OPERATIONAL HIGHLIGHTS FINANCIAL HIGHLIGHTS 19 dfm.ae#20Operational Highlights - Key Indicators. Market Capitalization (AED bn) 411 394 375 341 344 340 302 Total Traded Value (AED bn) 576 151 133 115 60 60 53 53 72 69 66 69 2015 2016 2017 2018 2019 2020 2021 9M 2022 2015 2016 2017 2018 2019 2020 2021 9M 2022 Note: Figures exclude Nasdaq Dubai 20 dfm.ae#21Operational Highlights - Key Indicators. ADTV (AED mn) 603 533 461 Market Velocity (%) 59% 49% 367 39% 41% 37% 38% 291 49% 36% 35% 261 238 213 37% 29% 19% 17% 14% 18% 16% 1 2015 2016 2017 2018 2019 2020 2021 9M 2022 2015 2016 2017 2018 2019 2020 2021 9M 2022 DFM Market Velocity Global Average Velocity Note: Figures exclude Nasdaq Dubai 1 Velocity is calculated as annualized trade value/end of period market capitalization, source for global velocity figures is the World Federation of Exchanges. 21 dfm.ae#22Operational Highlights DFM General Index Performance DFMGI Performance YTD 2022 18000 16000 14000 I 12000 10000 8000 5000 4500 4000 3500 3000 6000 2500 1 January-22 February-22 March-22 April-22 May-22 Nasdaq Composite June-22 July-22 August-22 September-22 S&P 500 DFMGI 22 dfm.ae#23Operational Highlights DFM PJSC Stock Trading Activity DFM PJSC Stock Price Performance (AED) 2.84 DFM PJSC Stock Trading Activity (AED mn) 32.4 30.7 21.1 13.8 14.4 18.5 13.5 mm...ll 11.2 3.6 3.6 4.4 3.8 6.3 5.0 1.25 1.23 1.12 0.93 11.4 0.97 1.49 11.0 0.8 2015 2016 2017 2018 2019 2020 2021 9M 2022 2015 2016 2017 2018 2019 2020 Average Daily Traded Volume (mn) 2021 ■Average Daily Traded Value (AED mn) 9M 2022 23 dfm.ae#24Operational Highlights DFM PJSC Dividends Dividends Per Share (AED) 0.05 0.07 0.05 0.05 Dividends Payout History (AED mn) 242% 171% 142% 153% 164% 74% 119 138 167 0.03 560 0.025 2013 2014 2015 2017 2019 2021 78 141 281 262 233 122 99 2013 2014 2015 2017 2019 2021 INI Portion RE Portion Payout Ratio % 1 NI stands for Net Income, whereas RE stands for Retained Earnings. 1 Calculated as dividend (paid following year) divided by the net profit of the year. 24 dfm.ae#25MARKET STRUCTURE & OFFERING LANDSCAPE OUTREACH & OPPORTUNITY OPERATIONAL HIGHLIGHTS FINANCIAL HIGHLIGHTS 25 dfm.ae#26Financial Highlights Total Revenue (AED mn) 351.8 327.1 298.1 Total Revenue Mix (%) 18% 17% 22% 21% 17% 240.1 27% 27% 185.7 43% 33% 34% 56% 56% 45% 45% 39% FY 2019 FY 2020 FY 2021 9M 2021 9M 2022 FY 2019 FY 2020 Trading fees FY 2021 Investment income 9M 2021 Others fees and income 9M 2022 Investment income includes profit earned on third party deposits. 26 dfm.ae#27Financial Highlights EBITDA (AED mn) and EBITDA Margin (%) 62.3% 64.2% 225.7 203.7 61% 52% 61% 181.7 97 Net Profit (AED mn) and Net Profit Margin (%) 37.3% 40.5% 142.6 122 146 33.2% 19% 36% 99.1 34 86 FY 2019 FY 2020 FY 2021 9M 2021 9M 2022 FY 2019 FY 2020 FY 2021 9M 2021 9M 2022 27 dfm.ae#28Financial Highlights Operating Expense Breakdown (%) (AED mn) 209.2 198.9 2% 1% 5% 6% 11% 12% 5% 4% 7% 6% 27% 43% FY 2020 28% 42% 150.8 1% 6% ■Interest Expense 11% 4% 8% 28% 42% FY 2021 9M 2022 Some figures & percentages might not totally add up due to rounding. The above exclude 2022 non-operating profit expense. ■Maintenance Depreciation Others ■General & Administrative Expenses Amortization of Intangible Assets ■Payroll & Other Benefits 28 dfm.ae#29Financial Highlights Selected Balance sheet items (AED mn) Main Financial Assets (AED mn) Main Financial Assets Breakdown Managed Funds FY 2021 Q3 2022 Q3 2022 Cash and Cash Equivalents Investment in Equity Securities Investment Deposits 3,253 2,816 313 9% Financial Assets Investment Deposits 2,816 Measured at FVOCI & 1,109 1,260 Cash and Cash Equivalents 7% amortized cost Less than 3 Months 865 Goodwill 2,879 2,879 Up to 1 Year but More than 3 Months 1,742 Investment in Sukuk 12% More than 1 Year 209 Other Intangible Assets 1,977 1,935 Other Financial Assets Measured at Fair Value - 335 Property and Equipment 322 (FVTOCI) & amortized cost Investment in Equity Securities 1,260 Commentary 402 Total Assets 9,938 9,906 Managed Funds 322 Total Equity 7,963 7,909 Investment in Sukuk 536 Total Liabilities 1,975 Total 1,997 4,389 8% Investment deposits are placed with financial institutions in the UAE, with profit rates ranging from 1.15% to 4.60% per annum. Investment in Sukuk in the UAE matures in 5-9 years and carries a fixed profit rate of 2.591%-5% per annum. 94% of the investments made by DFM are within the UAE. Investment Deposits 64% 29 dfm.ae#30Consolidated P&L Three months period ended Nine months period ended (AED'000) 30 Sep 2021 30 Sep 2022 30 Sep 2021 30 Sep 2022 Income Trading commission fees 21,419 41,081 83,638 135,485 Brokerage fees 3,747 3,393 10,959 10,221 Clearing settlement and depositary fees 2,045 3,762 13,379 16,898 Listing and market data fees 2,318 2,461 7,374 7,345 Other fees 903 1,716 4,811 5,210 Operating income 30,432 52,413 120,161 175,159 Investment income Dividend income Other income 16,619 21,420 55,610 52,327 142 6,857 9,634 39 68 3,099 (68) Profit income Total income 722 47,090 74,765 185,727 3,124 240,176 Expenses General and administrative expenses (33,869) (34,891) Amortisation of intangible assets (14,122) (14,122) (106,424) (42,366) (107,280) (42,366) Interest expense (1,040) 127 Operating expenses (49,031) (48,886) (2,570) (151,360) (1,162) (150,808) Profit expense (722) Total expenses (49,031) (49,608) Net profit for the period (1,941) 25,157 (151,360) 34,367 (3,124) (153,932) 86,244 30 dfm.ae#31Disclaimer The information in this document ("information") is provided by way of general information and comment only. While reasonable care has been taken in producing this information, changes in circumstances may occur at any time and may impact on the accuracy of the information. The information does not constitute professional advice or provision of any kind of services and should not be relied upon as such. Dubai financial market (DFM), Nasdaq Dubai limited and/or their affiliates, officers or employees (together "the DFM persons") do not give any warranty or representation as to the accuracy, reliability, timeliness or completeness of the information now or in the future. The DFM persons shall not be liable for any loss suffered, directly or indirectly by any person acting in reliance upon the information contained herein. No part of the information provided is to be construed as a solicitation to make any financial investment. Information, including forecast financial information and examples should not be considered as a recommendation in relation to holding, purchasing or selling securities or other instruments. The information does not take into account any investor's individual investment objectives, financial position and particular investment needs. As such, before making any decision, investors should conduct their own due diligence and consult their financial advisors. The performance of trading securities or instruments is not guaranteed and past performance is not an indication of future performance. Unless otherwise stated, DFM and Nasdaq Dubai own copyright in the information contained herein. The information may not otherwise be reproduced and must not be distributed or transmitted to any other person or used in any way without the express approval of DFM and Nasdaq Dubai. This presentation is private and confidential and should not be shared outside of the organisation. Contact Us: Investor Relations T: +971 4 305 5650 Email: [email protected] DFM is regulated by the UAE Securities and Commodities Authority (SCA) O in @dfmalerts @dubaifinancialmarket Dubai Financial Market www.dfm.ae 31 dfm.ae