Emaar, The Economic City · TADAWUL:4220
Emaar, The Economic City — Q3 2015 Earnings Presentation
26 slides from Emaar, The Economic City's earnings presentation, 2015
Slide 1: EEC - Investor Relations Presentation Q3 2015
EEC - Investor Relations Presentation Q32015 © King Abdullah Economic City 2015 Page 1 © King Abdullah Economic City 2015
Slide 2: Disclaimer
DISCLAIMER This presentation (Presentation) has been prepared by Emaar the Economic City (EEC) and/or its subsidiaries based on information available to it internally and third party sources. This Presentation does not purport to contain all the information that a prospective investor may require in
Slide 3: Contents
CONTENTS • Introduction • Project Overview and EEC Highlights • EEC Financials • Residential Development • Industrial Valley • Commercial Development • EEC Company History Page 2 © King Abdullah Economic City 2015
Slide 4: Our Vision
OUR VISION To establish King Abdullah Economic City (KAEC) as a great enabler of socio-economic development in the Kingdom of Saudi Arabia. Madinah Mecca
Slide 5: KAEC Master Plan
KAEC MASTER PLAN Project Overview Hejaz District KAEC is a greenfield city development roughly the Industrial size of Washington DC. Its objective is to help with Valley Saudi Arabia’s Acute housing demand and support economic diversification. KAEC’s Strategic location on the Red Sea puts it close t
Slide 6: KAEC Business Model
KAEC BUSINESS MODEL Funding CITY DRIVERS Economic Sources • Port • Industrial Valley Impact • Haramain Station • Bonded Zone • Land Bridge • Babson College Shareholders Realization of Equity Economic city vision CITY DEVELOPMENT & ECONOMIC GROWTH Job Creation INFRA-STRUCTURE HOUSING NEEDS • Roads Ne
Slide 7: KAEC Financial Highlights
KAEC Financial Highlights EEC is an affiliate of Emaar Haramain Properties 7.61BSAR 24M SQM High 30% Market Cap sold out of a total of 131M SQM and 364,000 SQM this year SpeedRail Operating early 2016 ownership stake 37% 24% 25% 98% Revenue Growth EBIT Growth Net Income Growth Increase in IV Tenants
Slide 8: EEC's Financial Growth Quarterly Breakdown
EEC’s Financial Growth Quarterly Breakdown (SARS M) Q 3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 236 169 145 303 229 111 213 157 147 85 47 85 69 50 8.1 Revenue Gross Profit Net Income Presales and Revenue Segment Breakdown % Breakdown of for YTD Sept 30 Revenue YTD Sept 2015 PreSales Revenue Residential
Slide 9: EEC's Segment Breakdown YTD September 2015
EEC’s Segment Breakdown YTD September 2015 Residential Financial Industrial Valley Commercial Development 500 Revenue 60.8 47.2 366.4 GP 6 43.5 331.5 EBITDA 33.1 0.48 336.4 Net Profit 30.8 -4.12
Slide 10: Sales Breakdown – PJTD vs. YTD – Q3 2015
SALES BREAKDOWN – PJTD VS. YTD – Q3 2015 Total Area (M2 ‘000) Number of Units (Full Value) PJTD YTD PJTD YTD 21,793 3,727 2,571 11,609 8,222 1,395 1,104 850 543 1,664 176 68 417 122 598 7 44 1 Vertical Land SOL Land IV Land Sales PDC Land Total Area Vertical Land SOL IV Land PDC Total Land Sales Lan
Slide 11: Major Developments - Residential Map
MAJOR DEVELOPMENTS - RESIDENTIAL MAP Page 21 © King Abdullah Economic City 2015
Slide 12: Residential Development Sales and Lease Breakdown YTD 2015
Residential Development Sales and Lease Breakdown YTD 2015 RE Vertical Land Residential Development Game Changers (SARS) Strong presales growth at 79.95% CAGR $665 from 2012-2014 driven by: Presales $306 • Competitive prices offering investment upside • Good infrastructure relative to other major ci
Slide 13: Residential Presales Product Statistics (2012-2015)
RESIDENTIAL PRESALES Product statistics (2012-2015) Product 2012 2013 2014 2015 E Vertical Presales SAR M 21 9 736 1,136 Units 12 6 843 1,074 Land Plots Presales SAR M 167 673 1,250 1,366 Units 136 403 1,674 1,389 Totals Presales SAR M 188 682 1,986 2,502 Units 148 409 2,517 2,463 Change to Presales
Slide 14: Residential Presales Summary YTD Sept 2015
RESIDENTIAL PRESALES SUMMARY YTD Sept 2015 Residential Sales Summary % Presales % Unsold % Lease TH4 98% 2% 253 Al Talah 5 83% 17% 504 Al Talah 4 90% 10% 410 Al Talah 3 100% 0% 439 Al Talah 1.2 98% 2% 279 Al Talah 1.1 100% 0% 145 GC3 56% 44% 219 GC1 99% 1% 91 BC2 97% 3% 392 BC1 98% 2% 103 Total Rele
Slide 15: Residential Development Project Breakdown YTD Sept 2015
RESIDENTIAL DEVELOPMENT PROJECT BREAKDOWN YTD SEPT 2015 Total Total Sale Price Per Community Type District Target Income Released Unreleased Sellable Area Construction Progress Launch Date Presales %Presales SQM Units Units Al Shurooq Apartment Al Shurooq Affordable 606 834 135,064 4,489 57% Launche
Slide 16: Major Developments – Industrial Valley
MAJOR DEVELOPMENTS – INDUSTRIAL VALLEY IV 4 IV 3 Northern Parcel Land Use GLA NLA %IV Breakdown IV IA 1,500,000 1,316,000 8% 3%5% IV IA IV IB 2,100,000 1,816,200 17% IV IB IV Phase 2 22,000,000 17,855,000 IV Phase 2 IV Phase 3 7,000,000 6,101,000 IV Phase 3 IV Phase 4 6,440,000* 3,398,000 16% 51% IV
Slide 17: Industrial Valley Sales and Lease Segment Breakdown YTD Sept 2015
Industrial Valley Sales and Lease Segment Breakdown YTD SEPT 2015 Industrial Leased Sold NLA Industrial Valley Game Changers Valley • Reoccurring revenue represents roughly 79% 50% of IV revenues from Industrial lease Phase IV IA 1,316,000 properties. • 98% Growth in Tenants from 2013-2014 driven by
Slide 18: Lease & Sales Summary
Lease & Sales Summary Area Leased Area Sold Inventory Phases Launched Phases in Planning 3,806 3,712 2,088 3,484 355 3,200 3,200 4,590 1,862 3,805 1,069 3,398 3,129 1,316 1,214 2,514 1,043 2,066 1,894 1,624 1,213 793 927 273 Phase 1A Phase 1B Phase Phase Phase Phase Phase Phase Phase Phase Phase 4 B
Slide 19: Industrial Valley - Existing Tenants
INDUSTRIAL VALLEY - EXISTING TENANTS 97 global and local IV tenants are in KAEC with 34 tenants on the ground FMCG PHARMACEUTICALS PLASTICS CONSTRUCTION LOGISTICS AUTOMOTIVE GENERAL * * * * * * * * * Page 19 © King Abdullah Economic City 2015
Slide 20: Commercial Development
Commercial Development Bay Views Office Park Brief Description: • Bay View’s is located in the heart of the Bay La Sun district in close proximity to the Bay La Sun Hotel & Marina and other waterfront residential developments. Currently this development is complete and will host 11, 500 Employees up
Slide 21: Existing Retail Tenants
EXISTING RETAIL TENANTS Page 21 © King Abdullah Economic City 2015
Slide 22: Appendix
Appendix Page 2 © King Abdullah Economic City 2015
Slide 23: Economic Cities Authority (ECA)
ECONOMIC CITIES AUTHORITY (ECA) PRIVILEGED EASE OF DOING ONE REGULATOR REGULATIONS BUSINESS • Master plan Approval & • 100% foreign ownership for • 60x24x7 concept of service Permitting. companies & individuals provision for all government • Business Licensing • Bonded Zone regulations services (com
Slide 24: Incentives for Doing Business in KAEC: Regulatory
INCENTIVES FOR DOING BUSINESS IN KAEC A) REGULATORY • Full foreign ownership permitted for companies, plant, equipment, projects arid property • Accelerated business registration and setup process • 38 bilateral trade agreements with partners giving stronger foreign investor rights • Double taxation
Slide 25: Incentives for Doing Business in KAEC: Fiscal
INCENTIVES FOR DOING BUSINESS IN KAEC B) FISCAL • 20% Corporate Tax Rate for foreign companies and unlimited loss carryover • No VAT or GST, no land or property tax and no personal income tax • Kingdom is ranked 3rd best tax environment globally • Tax deductions for R&D investment and training expen
Slide 26: Incentives for Doing Business in KAEC: Financial
INCENTIVES FOR DOING BUSINESS IN KAEC C) FINANCIAL • Access to soft loans from Saudi Industrial Development Fund (SIDF), and Public Investment Fund (PIF) • Human Resources Development Fund that provides aid and support for activities related to qualifying, training and recruitment of Saudi labor. It
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