Emaar Properties (p.j.s.c) · DFM:EMAAR
Emaar Properties (p.j.s.c) — Emaar Malls PJSC — Q1 2021 Earnings Presentation
36 slides from Emaar Properties (p.j.s.c)'s earnings presentation, May 17, 2021
Slide 1: Emaar Malls PJSC
MALLS Emaar Malls PJSC Leading Owner and Operator of Dominant Retail Assets Investor Presentation May 2021 0 | EMAAR MALLS
Slide 2: Disclaimer
Disclaimer Emaar Malls PJSC gives notice that: The particulars of this presentation do not constitute any part of an offer or a contract. Given that the presentation contains information based on forecasts and roll outs, all statements contained in this presentation are made without responsibility o
Slide 3: Discussion Summary
Discussion Summary Investment Rationale Business Overview Business Strategy & Outlook Q1 2021 Results Update Annexure 2 | EMAAR MALLS
Slide 4: Investment Rationale
Investment Rationale 3 | EMAAR MALLS
Slide 5: Emaar Malls at a Glance
Emaar Malls at a Glance Owns & Operates 363 Retail Assets High Operating Margin with GLA of 6.84 Mn sq. ft. EBITDA Margin2 – 78.5% Owner of The Dubai Mall – 76 Mn Footfall Most Visited Mall in the World 91% Occupancy Rate Omnichannel Presence through Namshi Annual Gross Rental Income Revenues 24% CA
Slide 6: Strong Performance Track Record
Strong Performance Track Record Emaar Malls Delivered Strong Results in Challenging Market Environment over 2016 to 2020 Rental Income In AED Mn EBITDA & PAT Margin % 1 3,599 3,647 80.5% 81.5% 80.9% 3,227 3,323 75.8% 64.2% 2,192 63.0% 63.4% 64.0% 58.1% 34.9% 2016 2017 2018 2019 2020 2016 2017 2018 2
Slide 7: Healthy Dividend Payout
Healthy Dividend Payout Strong Track Record and Proven Expertise To Generate Healthy, Predictable And Sustainable Returns In AED Bn 1.3 1.3 1.3 1.3 6% 79% 69% 5% 62% 58% 4% 4% 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 AED 5.2 Bn Cumulative Dividends Attractive Dividend Yield Robust
Slide 8: Comfortable Leverage and Credit Profile
Comfortable Leverage and Credit Profile Solid Credit Profile with very Comfortable Leverage and Significant Debt Coverage AED Million Dec 2020 Mar 2021 Key Ratios Dec 2020 Mar 2021 Debt 2,750 2,751 Debt / NAV 0.06 0.06 Cash 559 976 Debt / Equity 0.14 0.14 Net Debt 2,191 1,775 Debt / Total Assets 0.1
Slide 9: Business Overview
Business Overview 8 | EMAAR MALLS
Slide 10: Preferred Gateway to Dubai’s Consumerism for Aspiring Retailers and Brands
Preferred Gateway to Dubai’s Consumerism for Aspiring Retailers and Brands Diverse Retailing Formats with Strong Positioning & Experiential Retailing Along Superior Design & Architecture Established Presence with Leisure & Entertainment • Super-regional malls, regional • Prime urban location, strong
Slide 11: Established Portfolio with Diverse Retailing Formats
Established Portfolio with Diverse Retailing Formats… Total GLA Retail Assets Division Location & Catchment Key Highlights ('000 sq. ft.) • Downtown Dubai – • World renowned shopping & entertainment destination Super 500 acre flagship mega- • 1,200+ stores, leading retailers, marquee global brands T
Slide 12: With an Appealing Design & Architecture
…With an Appealing Design & Architecture 11 | EMAAR MALLS
Slide 13: Complemented by Fascinating Entertainment Avenues
…Complemented by Fascinating Entertainment Avenues At The Top Dubai Aquarium & Underwater Zoo VR Park World’s highest observation desk in Burj Khalifa Featuring world’s largest acrylic viewing panels Largest virtual reality park - 75,000 sq. ft. Kidzania Reel Cinemas Dubai Ice Rink Children’s edutai
Slide 14: Focus on Digitalisation for Enhanced Customer Service
Focus on Digitalisation for Enhanced Customer Service… THE DUBAI MALL APP 2.0 – CORE FEATURES Digital Initiatives taken at The Dubai Mall – Easy Parking ✓ Delivery Service ✓ Leveraging customer data analytics to better understand customer buying behaviour, taste and preferences 13 | EMAAR MALLS
Slide 15: With Active Marketing Events for Better Customer Engagement
…With Active Marketing Events for Better Customer Engagement Emirates Skywards Miles Loyalty Program at The Dubai Mall • Members – 538 k • Spend captured since inception – AED 5,920 Mn • Number of transactions since inception – 2,846 k 14 | EMAAR MALLS
Slide 16: Diversified Tenant Mix & Category Mix
Diversified Tenant Mix & Category Mix… Diverse Retailers And Marquee Brands With Many Having Exclusive Presence At Emaar Malls 2020 Category Mix - % GLA 4.8%, Health & Beauty 5.1%, Supermarket 4.4%, Furnishings 1.5%, Jewellery 4.0%, Merchandise 2.7%, Services 2.6%, High End Jewellery & Watches 9.8%,
Slide 17: Active Tenant & Space Management with Healthy Lease Renewals
Active Tenant & Space Management with Healthy Lease Renewals… Active Tenant Management Portfolio Lease Expiry Schedule % GLA of main unit expiring leases • Meet changing retail trends and evolving 32% consumer needs • Offer innovative & fresh retail concepts 22% 15% 16% 15% • Tenant re-zoning & re-s
Slide 18: Steady Rental Income Growth, High Operating Profitability
…And Steady Rental Income Growth, High Operating Profitability Steady Rental Income Robust Revenue Model Revenue Model: Chart Title • Rent equals higher of base rent or turnover rent 3,599 3,647 3,323 • Base rent is increased at a pre-defined rate over the lease term of 3,227 10% 10% 3-5 years 13% 1
Slide 19: Omni-channel Presence Through Namshi
Omni-channel Presence Through Namshi • Market leader in large & growing online fashion in core GCC markets • Largest brand assortment with ~950+ brands and growing • Preferred fashion channel, young & trendy 1,316 Net Merchandise Value 2 Gross Margin 2 24% + 6% 35.8% 1,028 849 730 Active Customers 2
Slide 20: Omni-channel Presence Through Namshi (Contd.)
Omni-channel Presence Through Namshi (Contd.) 2020 Geographical Mix Unrivalled Product Assortment in Middle East Other GCC 8% Prominent High Quality Fashion Brands UAE 24% KSA 68% 2020 Category Mix Sports Private Label 32% 12% Gifts, Home Growing White Label Portfolio & Beauty 12% Accessories & Fema
Slide 21: Sustainability Initiatives
Sustainability Initiatives Sustainability is an integral part of strategic and cultural transformation at Emaar Group Commitment to a sustainable future is focussed on three initiatives addressing energy, water and waste Our Sustainability Initiatives Energy • Preserving natural resources, reducing
Slide 22: Business Strategy & Outlook
Business Strategy & Outlook 21 | EMAAR MALLS
Slide 23: Multi-format Omni-channel Growth Strategy
Multi-format Omni-channel Growth Strategy Leverage Superior Asset Mix & Omni-channel Presence • Offer diverse retailing experience - super-regional malls, regional malls, specialty retail, community retail centers • Focus on constant innovations and improvements to deliver superior experiences • Str
Slide 24: Adopt Low-Risk Model For Future Expansions
Adopt Low-Risk Model For Future Expansions Projects under Emaar Malls GLA Expected Project Name Operate As Pure Rental Income Play (‘000 sq.ft.) Opening TDM Boulevard Expansion c. 110 H2 2021 • Pure Rental Income Play • Focus on rental income growth and cash flow generation • Minimal Development Ris
Slide 25: New Expansions – Strong Growth Potential: Dubai Hills Mall
New Expansions – Strong Growth Potential Dubai Hills Mall – Regional Shopping Mall Superior Positioning & Offerings Strong Catchment • Outdoor high-street mall with superior design & architecture • Located between Sheikh Mohammad Bin Zayed Road and Al Khail Road • Differentiated offerings with over
Slide 26: New Expansions – Strong Growth Potential: Dubai Expo Mall
New Expansions – Strong Growth Potential Dubai Expo Mall – Regional Shopping Mall Superior Positioning & Offerings Strong Catchment • Over 190 retail & F&B outlets • Located close to Expo 2020 site • 1,000+ parking spaces • Close proximity to Al Maktoum international airport • Excellent access & inf
Slide 27: Q1 2021 Results Update
Q1 2021 Results Update 26 | EMAAR MALLS
Slide 28: Q1 2021 Key Highlights
Q1 2021 Key Highlights Strong recovery in Tenant Sales Revenues Occupancy 14% increase vs Q1-20 & AED 901 Mn 91% 4% increase vs Q4-20 Double Average Spend per visitor Introduced flexible rent relief policy including tiered base Opened Time Out Market2 The Middle East Cleaning, rent waiver till Hygie
Slide 29: Emaar Malls – Result Highlights
Emaar Malls – Result Highlights 1 AED Million Emaar Malls Namshi Consolidated Revenue 643 258 901 Cost of revenue (88) (164) (252) Gross profit 555 94 649 % Gross margin 86.3% 36.3% 72.0% Sales, marketing, general & administration expenses (50) (114) (166) EBITDA 505 (21) 483 % EBITDA margin 78.5% -
Slide 30: Emaar Malls – Consolidated Result Highlights
Emaar Malls – Consolidated Result Highlights AED Million Q1 2021 Q1 2020 % Change Revenue 901 999 (10%) Cost of revenue (252) (254) 1% Gross profit 649 745 (13%) % Gross margin 72.0% 74.6% Sales, marketing, general & administration expenses (166) (209) 21% EBITDA 483 536 (10%) % EBITDA margin 53.6%
Slide 31: Emaar Malls Excl. Namshi – Result Highlights
Emaar Malls Excl. Namshi – Result Highlights AED Million Q1 2021 Q1 2020 % Change Revenue 643 742 (13%) Cost of revenue (88) (90) (2%) Gross profit 555 652 (15%) % Gross margin 86.3% 87.9% Sales, marketing, general & administration expenses (50) (101) (50%) Gain on disposal of assets held for sale1
Slide 32: Emaar Malls Excl. Namshi – Consolidated Result Highlights
Emaar Malls Excl. Namshi – Consolidated Result Highlights Rental Income Breakup (AED Mn) Footfalls - Mn Occupancy % Chart Title 92% 91% 742 4% 643 31 24% 3% 20% 20 3% 0% 69% 77% Q1 2020 Q1 2021 Key Highlights • Stable leasing occupancy of 91% Q1 2020 Q1 2021 • In April 2021, Emaar Malls’ partnership
Slide 33: Emaar Malls – Consolidated Balance Sheet
Emaar Malls – Consolidated Balance Sheet 31-Mar-21 31-Dec-20 AED Million Carrying Value Fair Value Carrying Value Fair Value Assets Property plant and equipment & Investment Properties 22,344 45,296 22,317 45,296 Intangible Assets & Right to Use Assets 1,055 1,055 1,066 1,066 Bank balances and cash
Slide 34: Annexure
Annexure 33 | EMAAR MALLS
Slide 35: Emaar Group Overview
Emaar Group Overview UAE Entertainment & International Operations Emaar Malls Emaar Hospitality Development Leasing • Leading master plan • Active in 10 targeted high • Emaar Malls PJSC is listed • Hotel owner and operator (28 • Provider of premium developer in Dubai growth countries on DFM since Oc
Slide 36: Thank You
Thank You EMAAR MALLS Name – Abhay Singhvi Email id - ASinghvi@emaar.ae 35 | EMAAR MALLS