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Press Releases of 2008 Abu Dhabi, UAE 17 December 2008: The National Investor (TNI), the UAE’s largest investment banking and investment management firm by market value, has signed a license agreement with MSCI Barra, a leading global benchmark authority, to create the MSCI Arabian Markets Real Estate Capped Index. The MSCI Arabian Markets Real Estate Capped Index, is a free float-adjusted, market capitalization index, and contains more than 60 leading real estate securities of the largest and most liquid companies from 11 Arab countries. The Index will be calculated in US$ and weights of companies in the Index will be capped at 10.0% to reflect MENA REAF investment guidelines. Walid Hayeck, Director Asset Management at TNI commented: “The real estate sector plays a pivotal role in Arab economies and constitutes one of the major contributors to Arab non-oil GDPs. It is one of the first sectors to benefit from oil cash surpluses and government infrastructure spending. We like to think of it as a market proxy for regional growth and TNI MENA Real Estate Active Fund is an ideal tool for an exposure to this still promising growth story.”
Net Profits of AED 34.9 million recorded Abu Dhabi, UAE, 5 November 2008: The National Investor (TNI), one of the region’s leading merchant banks today announced its half year 2008 results. The Abu Dhabi based institution achieved consolidated net profits of AED 34.9 million and consolidated revenues of AED 122.6 million. Abdullah M. Al Mazrui - Chairman said: “This is an honourable achievement and we are satisfied with this performance considering current market conditions, which is testament to our diversified business model. “Whilst we anticipate that the financial climate will be challenging in the coming months, TNI is confident it will continue to consolidate its position as one of the UAE’s most established banking institutions”, said Orhan Osmansoy, CEO of The National Investor. About The National Investor: The National Investor (TNI) is a privately owned regional investment banking group. The firm comprises six strategic business divisions covering investment banking, private equity, asset management, real estate, investment research and principal investments. In addition, the firm has an associate company, GNSC, which provides brokerage services as a registered member of the Abu Dhabi Securities Market (ADSM) and the Dubai Financial Market (DFM). TNI and CHI Hotels & Resorts celebrate the signing of Ramada © brand at the Mafraq Hotel today Abu Dhabi, UAE, 1 July 2008: The National Investor (TNI), one of the region’s leading merchant banks, recently held a signing ceremony between Ramada © representatives, Malta-based CHI Hotels & Resorts and Mainland Investment LLC, a wholly owned subsidiary of TNI. The signing marked the start of technical services and a 10 year agreement for the management of the renovated and extended Mafraq Hotel in Abu Dhabi, and was the first property to be signed under the Ramada © brand in the emirate. The hotel has currently 121 rooms, and will be re-launched as a 250 room Ramada Abu Dhabi Mafraq hotel in early 2010. TNI Chief Executive Officer, Orhan Osmansoy said: “Today marks another important milestone for the TNI property portfolio; we are very happy to be involved with CHI Hotels & Resorts, a reputable firm with over 45 years of experience in delivering high quality service to hotel guests.” “This new property fits perfectly in our current and long term expansion plans for this region” said Corinthia Hotels International, Vice President- Development, Paul Pisani. “Our joint venture with the Wyndham Hotel Group for the operation of the well established Wyndham and Ramada brands in Europe, Middle East and Africa, together with the upscale Corinthia brand, is proving to be the perfect catalyst for our management company to expand its operation in both established and new destinations. In the last year alone, the JV has enabled us to increase our portfolio by no less than six prime properties in destinations such as Algiers, Dubai, Egypt, England, Morocco and Romania.” Concluded CHI Hotels and Resorts chief executive officer and managing director Tony Potter. The Ramada Abu Dhabi Mafraq hotel is located ten minutes from Abu Dhabi International Airport and is within easy reach of the main golf courses and racing track in Abu Dhabi. -Ends- Notes to Editor TNI UAE Blue Chip Fund: Reuters BCF – TNIBCF Bloomberg BCF TUNIUAEF – UH Minimum investment AED 1 million About The National Investor: The National Investor (TNI) is a privately owned regional investment and merchant banking group. The firm comprises six strategic business units covering investment banking, private equity, asset management, real estate, principal investments, and investment research. In addition, the firm has an associate company, Gulf National Securities Centre (GNSC), which provides brokerage services as a registered member of the Abu Dhabi Securities Market (ADSM), the Dubai Financial Market (DFM), and Dubai International Financial Exchange (DIFX). DIVISION WINS INDUSTRY AWARD FOR THIRD YEAR IN SUCCESSION Abu Dhabi, UAE - 22nd June 2008: The National Investor (TNI) has been awarded the Best Asset Management House title at the Banker Middle East Industry Awards. A panel of industry peers shortlisted the division and the winner was decided by the Banker Middle East magazine’s subscribers who voted online. 2008 is the third year in a row that TNI has won the regional award. TNI’s strong results and the addition of new products and capabilities in the past year attributed to the win. The three-year old division made substantial profits during the year 2007-8, and its revenue contribution also increased more than 300% from the previous year. The division’s flagship funds, The MENA Real Estate Active Fund and The UAE Blue Chip Fund both significantly outperformed their benchmarks by 25.2%, and 14.2% respectively in the past year. The implementation of new absolute return expertise and the attraction of institutional and international business are areas of focus for TNI Asset Management for the coming year. Walid Hayeck, Senior Vice President, Asset Management said: “This is a very prestigious award which means so much as it is decided by our industry peers. We are proud to be the winners of the best asset management house in the Middle East as our products and services are amongst the most innovative and our funds are beating every other in the market on returns and volatility. We are confident on making our run of success four years in a row at next years awards.” TNI’s Private Equity division was also shortlisted for the Best Private Equity House award. Yahya Jalil, Senior Executive Office, Private Equity said: “It is an honour to be shortlisted for such a definitive industry award in our second year of operations. With our profile growing so rapidly and our TNI Growth Capital Fund performing so well we have every confidence in winning something for the trophy cabinet next year at these awards.” “Our joint venture with the Wyndham Hotel Group for the operation of the well established Wyndham and Ramada brands in Europe, Middle East and Africa, together with the upscale Corinthia brand, is proving to be the perfect catalyst for our management company to expand its operation in both established and new destinations. In the last year alone, the JV has enabled us to increase our portfolio by no less than six prime properties in destinations such as Algiers, Dubai, Egypt, England, Morocco and Romania.” Concluded CHI Hotels and Resorts chief executive officer and managing director Tony Potter. The Ramada Abu Dhabi Mafraq hotel is located ten minutes from Abu Dhabi International Airport and is within easy reach of the main golf courses and racing track in Abu Dhabi. -Ends- Notes to Editor About The National Investor: The National Investor (TNI) is a privately owned regional investment and merchant banking group. The firm comprises six strategic business units covering investment banking, private equity, asset management, real estate, principal investments, and investment research. In addition, the firm has an associate company, Gulf National Securities Centre (GNSC), which provides brokerage services as a registered member of the Abu Dhabi Securities Market (ADSM), the Dubai Financial Market (DFM), and Dubai International Financial Exchange (DIFX). Fund outperforms MSCI UAE Index benchmark 38.5% Abu Dhabi, UAE, 28 May 2008: The National Investor (TNI), one of the region’s leading merchant banks is celebrating the third anniversary of one of its flagship funds, the TNI UAE Blue Chip Fund which has returned +22% since inception in May 2005. The fund is primarily focused on publicly traded equities of UAE firms with large capitalization which present a steady and recurrent track record of earning growth and have a potential for capital appreciation. TNI UAE Blue Chip Fund has returned +4.8 percent year-to-date compared to its benchmark’s -3.8 percent return. The fund’s current net asset value (NAV) is AED 12.22 and its top holdings include ArabTech, Etisalat, Aldar and Emaar. Allocations are based on fundamental research and incorporate a blend of top-down and bottom-up analysis. The fund manager, Walid Hayeck said: “TNI UAE Blue Chip Fund is just one of a suite of GCC and MENA focused funds that TNI manages. Our consistent out performance is attracting global attention, including interesting institutional mandates and we are in the process of restructuring to accommodate such interest as soon as possible.”
-Ends- Notes to Editor TNI UAE Blue Chip Fund: Reuters BCF – TNIBCF Bloomberg BCF TUNIUAEF – UH Minimum investment AED 1 million About The National Investor: The National Investor (TNI) is a privately owned regional investment and merchant banking group. The firm comprises six strategic business units covering investment banking, private equity, asset management, real estate, principal investments, and investment research. In addition, the firm has an associate company, Gulf National Securities Centre (GNSC), which provides brokerage services as a registered member of the Abu Dhabi Securities Market (ADSM), the Dubai Financial Market (DFM), and Dubai International Financial Exchange (DIFX). Net Profits of AED 113.6 million recorded, an increase of 43% from 2006-7 Abu Dhabi, UAE, 21 May 2008: The National Investor (TNI), one of the region’s leading merchant banks has reported today that 2007-8 was a year of record performance for the 14 year old firm. The Abu Dhabi based bank achieved consolidated net profits of AED 113.6 million, which is a 43% increase from the previous year. The firm’s shareholders equity also grew substantially, increasing 32.3% in the 2007-8 accounting period. This figure now stands at AED 1.1 billion. Abdullah M. Al Mazrui - Chairman said: “These figures reflect a year of growth and of successful diversification at TNI. In 2007-8 we succeeded in establishing a full-service firm, with market-leading Investment Banking, Asset Management, Private Equity, Real Estate, Principle Investment & Investment Research divisions”. “I am enthusiastic about what we can accomplish in the coming year. With its experienced and talented team and indigenous heritage, TNI is well positioned to continue to grow as a premier provider of investment banking and asset management services in the region.” -Ends- About The National Investor: The National Investor (TNI) is a privately owned regional investment and merchant banking group. The firm comprises six strategic business units covering investment banking, private equity, asset management, real estate, principal investments, and investment research. In addition, the firm has an associate company, Gulf National Securities Centre (GNSC), which provides brokerage services as a registered member of the Abu Dhabi Securities Market (ADSM), the Dubai Financial Market (DFM), and Dubai International Financial Exchange (DIFX). Abu Dhabi, UAE, March 2008: The National Investor (TNI), one of the leading investment and merchant banking groups in the GCC region, announced yesterday that the Capital Market Authority (CMA) of Saudi Arabia has approved its new group company, The National Investor Saudi Arabia (TNI-KSA), to provide financial services in the Kingdom. As such, TNI-KSA is now licensed to provide a full range of investment banking services, including corporate finance, asset management, real estate and private equity. Commenting on the new license, Mr. Abdullah M. Mazrui, Chairman of TNI’s Board of Directors, said: “This is a very happy moment for us being yet another major stride towards our firm’s success. With this new entity now in place, we will continue to benefit from emerging market opportunities in the region. We have always been able to differentiate ourselves in a crowded and competitive market place based on our trusted client service, but now with the launch of our activities in the Kingdom, we believe we can further strengthen our businesses, better serve our clients, and foster the delivery of strong growth across all our activities”. As part of its expansion strategy, TNI signed in 2007 a partnership agreement with Al Rajhi Investment Group (ARIG), one of the most diversified investment groups in Saudi Arabia, to establish a closed joint stock company in Riyadh with an initial paid up capital of SAR 75 million (AED 75 million). “We are proud to be associated with such a prominent Saudi name,” commented Mr. Orhan Osmansoy, TNI’s Chief Executive Officer. “In our view, this is going to be amongst the most powerful partnerships that one can have in Saudi Arabia. I am confident that with ARIG on board, we will have the right platform in place to become a successful player in the Kingdom,” he said. “In the past, we covered the Saudi market through our Abu Dhabi offices; by having the proper infrastructure, personnel and the right partnership with a renowned Saudi group such as ARIG, we believe we now have significant presence in the Saudi market,” Mr. Andrei Ugarov, Chief Executive Officer of TNI-KSA, commented. “Given our track record in the UAE and the opportunities that exist in the Saudi market, I anticipate that TNI-KSA will soon become a major contributor to our aggregate bottom-line,” Mr. Ugarov concluded. -Ends- About The National Investor: The National Investor (TNI) is a privately owned regional investment and merchant banking group. The firm comprises six strategic business units covering investment banking, private equity, asset management, real estate, principal investments, and investment research. In addition, the firm has an associate company, Gulf National Securities Centre (GNSC), which provides brokerage services as a registered member of the Abu Dhabi Securities Market (ADSM), the Dubai Financial Market (DFM), and Dubai International Financial Exchange (DIFX). About Al Rajhi Investment Group: Al Rajhi Investment Group is a well established diversified business group located in KSA and UAE. The Group’s line of business is very diversified with a defined mission and vision that govern its business growth strategies, and is keen to achieve such within the coming five years. RESEARCH SHOWS THAT UAE COMPANIES ARE IMPROVING THEIR FINANCIAL REPORTING 03 April 2007, Dubai, UAE: Latest research from The National Investor (TNI), the Abu Dhabi based investment bank, has identified that UAE listed companies are improving their financial reporting in terms of compliance with deadlines and international standards of communicating information. TNI’s data also reveals that Abu Dhabi listed companies are more compliant than their Dubai counterparts in meeting quarterly and annual deadlines. On average, 88% of companies on the Abu Dhabi Stock Market (ADSM) met the preliminary year-end deadline in 2007, in comparison to only 73% of Dubai Financial Market (DFM) companies. Furthermore, 97.9% of Abu Dhabi-listed companies met the quarterly disclosure deadline in 2007, against 96.3% of Dubai-listed companies. According to the ‘Results Publication Calendar’ report, which forecasts public companies’ results announcement dates based on past behaviour, overall UAE companies continue to improve their compliance with quarterly results deadlines. 95% of UAE companies met the three 2007 deadlines, 10% more than in 2006. The author of the report, TNI Analyst Brian Davidson, said: “Our data clearly indicates that UAE companies are taking their compliance responsibilities more seriously. The relaxation in disclosure deadlines from 31 to 45 days decreed last year also helped a great deal, as a number of auditors we spoke to told us that the previous period was extremely difficult to manage.” In its first calendar report, in 2006, TNI had called for UAE companies to pre-announce their results dates and conduct analyst calls upon disclosure, in line with international standards. The 2007 calendar records that six companies announced this information and a number conducted analyst calls upon publication for the first time. Conversely, yearly reporting deadline compliance worsened in 2007. Against the general trend of improvement, 81% of UAE companies published their full year results on time in 2007, compared to 90% in 2006. Eleven of the companies that missed the year end deadline in Dubai were Kuwait based organisations. As a result of its investigation, TNI is calling for five areas of disclosure improvement: meeting disclosure deadlines; content of preliminary disclosure; use of appropriate language and format; compliance with any pre-announced result publication dates; and disclosure of results dates further in advance. Davidson concluded: “We have closely followed the results disclosure of UAE-listed companies over the last couple of years and have witnessed notable improvements in the quality and timeliness of disclosures. However there is still plenty of room for improvement, in areas we have identified, and meeting disclosure deadlines is still one of the most important”. For further comment on the report, please contact: Heidi Robinson Capital MS&L +971 50 848 5022 heidi.robinson@capitalmsl.com For more information on The National Investor please visit www.tni.ae THE NATIONAL INVESTOR RATES STOCK FAIRLY PRICED AND POINTS TO TOUGH CHALLENGES IN THE YEARS AHEAD Tuesday 28th February. Dubai, United Arab Emirates: 2007 results recently announced from Tabreed have risen in line with expectations made by The National Investor (TNI) in their early 2007 report. But the Abu Dhabi Investment Bank’s 2008 analysis is quick to add that the 16.9% growth from the water cooling company “was not necessarily sustainable”. The Report published today points to slowing momentum in Tabreed’s district cooling segment, which was below forecasted growth in 2007. It also highlights landmark 2007 deals with property groups Aldar and Sorouh as presenting potential risks in delayed revenue and in stretching an already leveraged balance sheet. At the same time, these deals offer significant growth opportunities for Tabreed in terms of district cooling capacity. On reviewing increasing competition in the sector from young companies such as Palm Cooling, TNI’s update authored by Analysts Awan and Davidson recognizes Tabreed’s position as a market leader, and suggests that eventually the younger companies will become significant threats. Another “substantial risk” to growth identified by Awan and Davidson was the drop in capital expenditure over the year from a planned AED 2.4bn, to an actual AED 1.1bn. “This would limit capacity growth in the immediate future however we do expect Tabreed to improve and sustain its operating margins” declares the report. This margin expansion is expected to be achieved through better prices, controlled staff costs and growing district cooling capacity. TNI updated its target price to AED 3.23 and rated Tabreed as Fairly Priced. The bank had initiated coverage in 2007 with an Underpriced rating. "Our Fairly Priced rating is underpinned by higher than expected growth in smaller segments and downgrading of estimates for the district cooling segment", the report said. Abu Dhabi, UAE, 22 January 2008: In an industry where the largest companies rely on their hold of aircraft and related fixed assets, Aramex stands out as exceptional, said a report released yesterday by The National Investor (TNI). The management insists on following a non-asset based approach which entails practically no leverage for the company. This might be in stark contrast with giants of the logistics industry but Aramex is convinced it is the right way to differentiate itself, the report found. "The mission statement of the company is precise and leaves nothing for imagination. The management wants to make Aramex the fifth largest logistics company in the world. Their definition of competition is coverage and not sales or capitalization. With a steady stream of acquisitions, Aramex is on its way to achieving this mission," stated Hassan Awan, the TNI investment research team member who prepared the report. Organic growth is as important for Aramex as external growth. Over the last few years, the former has been going hand in hand with systematic acquisitions. With such acquisitions the company has penetrated geographical areas like Europe and Asia. The company has its eyes peeled for further expansion in Asia in particular, given the strong economic growth in countries like China. Awan pointed out that revenues of the company have grown at a CAGR of 28% between 2002 and 2006. The advantage of this non-asset based approach is that Aramex is free to choose from a number of transporters when it needs to deliver its goods. Owning and running its own aircraft would deprive Aramex of such flexibility and would result in significant maintenance costs. "Our Underpriced rating of Aramex is based on its successful yet differentiated business model and a growing industry. The Middle East is gaining ground in world logistics. It is one of the fastest growing markets in the world and Aramex is strategically placed to benefit from this boom. The company has clear goals, a different business model, comparatively faster growth rates and a smart acquisition strategy. Our DCF-based target price is AED 3.93, an upside of 32.7% to the current price of AED 2.96," Awan concluded. The transportation sector index in the UAE consists of three companies, which can hardly be compared on financial or operational grounds (Gulf Navigation, Air Arabia and Aramex). Aramex currently runs 304 offices in 192 cities around the world. There are certain geographical areas in Asia which are still untapped. Moreover, Aramex has a twofold approach when entering a new geographical market: 1/compete with the existing logistics companies or 2/create an "Aramex niche" in a highly competitive market where there are high barriers to entry. The US presence of Aramex is the example of running a niche where the existing logistics network is gigantic. Aramex has a dedicated team which tracks opportunities for expansion into new markets. Acquisitions in markets like the US are meant to facilitate and sustain the company's presence there. On top of the acquisitive agenda of Aramex are emerging markets like East Asia. The management is keen to acquire attractive companies in China and has specialists in the region who are looking for potential targets. According to the report, Profit margins of Aramex have historically been quite stable though due to an expanding management team, operating margins have been squeezed at times. Margins also depend on the revenue mix because of the sharp difference in segmental profit margins. The revenue mix has been uniform over the last few years however it changed in 2006 following the acquisition of TwoWay Vanguard. However, the report stressed that the gross margins across segments are substantially different because of the diverse nature of services offered by Aramex. Logistics is the most profitable segment as it primarily requires warehousing and storage. On the other hand, freight is the least profitable in terms margins because of the transportation involved. Although no figures have been released yet, but the TNI report expected the gross profit margin to rise in 2007 because of the growth in the international express segment. The share of different segments in total revenue has been stable over time. Revenue composition does however change whenever there is a significant acquisition. Currently, most of the revenues come from the international express and freight segments. Going forward, Aramex plans AED 30-40m investment in the Logistics segment in 2009. The TNI report found that the resulting increase in capacity will boost revenues from the segment if there is adequate demand. "Increased revenue contribution from the Logistics segment could result in higher margins," the report concluded. About The National Investor: The National Investor (TNI) is a privately owned regional investment banking group. The firm comprises six strategic business units covering investment banking, private equity, asset management, real estate, investment research, and principal investments. In addition, the firm has an associate company, GNSC, which provides brokerage services as a registered member of the Abu Dhabi Securities Market (ADSM) and the Dubai Financial Market (DFM). Abu Dhabi, UAE, 23 January 2008: A research report released yesterday by The National Investor (TNI) found that the National Bank of Ras Al-Khaimah (RAKB) has built a strong retail franchise. Entitled "RAKB: Pearl in the Arabian Ocean", the report depicted RAKB as a small player in the UAE banking sector with a market share of around 1.7%. The bank has decided to position itself as a retail specialist, the reports' analyst said. This has enabled the bank to build a strong retail franchise by increasing its network within UAE and leverage upon a complete array of products and services. In terms of retail lending, it is ranked seventh among the listed banks with a market share of around 4.9%. "RAKB's performance during the last couple of years was outstanding on the back of strong credit demand and higher margins on consumer book. But sustaining high margins will be a challenging task as most competitors have renewed focus to aggressively penetrate the retail market. Going forward, we believe that RAKB's net margin is likely to shrink by 40 bps during the projection period. This should result in a slowdown of net earnings growth of 26.9% for the next three years compared to 39.6% witnessed during 2003-2006," pointed out Burhan Ali, the report's analyst. The TNI report recommended that a possible merger might be a good strategic option for the bank. "RAKB is operating in a niche business segment, which is a lucrative line of business with higher level of risk. However, in the case of RAKB, the asset quality is not showing any signs of stress. GCC banks are diversifying their products portfolio in order to penetrate their local markets, generate economies of scale and increase customers' loyalty. Therefore, we believe the bank should look for strategic options to strengthen its position on the back of relatively smaller balance sheet size and margin pressure affecting profitability," the report highlighted. The report arrived at an AED 9.47 fair value for RAKB. Burhan Ali explained: "We have used two valuation methods, DDM and sector comparables. Our DDM yields a fair value of AED 9.66 per share, an upside of 20.8%. Based on the comparative valuation, the value of RAKB comes out at AED 8.73 per share, an upside of 9.1%. We assign a weight of 80% to the more reliable DDM, and arrive at a fair value per share of AED 9.47, an upside of 18.4% compared to the closing price of AED 8.0". According to the report, TNI has a positive outlook on RAKB, despite the fact that sustaining the current market share and margins will be a challenging task in a highly competitive industry. "We believe that the bank should be able to offset the downside risk by 1/ strong growth in the consumer loan book on the back of favourable economic environment and growth in the population and 2/ diversification of non-interest income," Ali concluded. About The National Investor: The National Investor (TNI) is a privately owned regional investment banking group. The firm comprises six strategic business units covering investment banking, private equity, asset management, real estate, investment research, and principal investments. In addition, the firm has an associate company, GNSC, which provides brokerage services as a registered member of the Abu Dhabi Securities Market (ADSM) and the Dubai Financial Market (DFM). |
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