Emaar Development Pjsc · DFM:EMAARDEV
Emaar Development Pjsc — Q3 2019 Earnings Presentation
34 slides from Emaar Development Pjsc's earnings presentation, Nov 20, 2019
Slide 1: Emaar Development PJSC Investor Presentation
Emaar Development PJSC An Enduring Enterprise. Prepared for the Up-cycle Investor Presentation November 2019 0
Slide 2: Disclaimer
Disclaimer Emaar Development 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 responsibi
Slide 3: Discussion Summary
Discussion Summary Investment Rationale Business Overview Business Strategy & Outlook Q3 & 9M 2019 Results Update Annexure 2 | EMAAR DEVELOPMENT
Slide 4: Investment Rationale
Investment Rationale 3 | EMAAR DEVELOPMENT
Slide 5: Emaar Development at a Glance
Emaar Development at a Glance Creator of World-Renowned Architectures Strong Financial Performance in 2018 • Burj Khalifa – Tallest Building in the World • Revenues AED 15.4 Bn (49% CAGR1) • Dubai Creek Tower – World’s tallest tower in • EBITDA AED 5.7 Bn (39% CAGR1) the making • Net Profit AED 3.9
Slide 6: Developer of Iconic Master Plans Transforming Dubai
Developer of Iconic Master Plans Transforming Dubai Downtown Dubai Dubai Marina 2005 Today 2003 Today ✓ 500-acre Flagship Mega-Development ✓ Largest Man-Made Marina1 (3.5 sq.km.) development of ✓ One of the Most Visited Destinations In The World its kind ✓ Includes World’s Tallest Building & World’s
Slide 7: Strong Performance Track Record
Strong Performance Track Record Emaar Development Delivered Consistent Growth in a Challenging Environment over 2014 to 2018 In AED Mn Revenues Gross Profit CAGR 49% CAGR 38% 6,700 15,433 8,863 3,761 6,899 2,395 2,861 5,253 1,841 3,140 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 EBITDA Net Pro
Slide 8: Consistently Ahead of the Competition
Consistently Ahead of the Competition Emaar Development Maintained Robust Sales Trend over 2014 to 2018 Robust Sales – Ahead of the Competition (More than 3x in 2018) In AED Bn 18.0 14.4 14.2 ✓ Displayed strong sales traction, despite 12.3 11.5 10.2 9.1 difficult market conditions 7.0 7.5 4.3 ✓ Sign
Slide 9: Well-Defined Dividend Policy
Well-Defined Dividend Policy Focus on Sustained Dividend Payout in Future Well-Positioned to Sustain Target Dividend Policy Dividend Distribution Future Dividend Payments Robust Cash Flow Generation Target aggregate Total AED 2.08 Bn dividends • Robust cash flow generation paid for 2018 supported by
Slide 10: Business Overview
Business Overview 9 | EMAAR DEVELOPMENT
Slide 11: Largest Master Developer and Preferred Development Partner
Largest Master Developer and Preferred Development Partner Leadership Position Preferred Development Partner • Largest masterplan developer in UAE, having • Recognition for superior quality and consistent transformed Dubai’s landscape delivery • Unique proposition of premier integrated lifestyle • A
Slide 12: De-risked Business Model to Deliver Self-Sustaining Growth
De-risked Business Model to Deliver Self-Sustaining Growth Minimal Cash Self-Funded Construction Minimal Default Rate Requirement for Land • Sufficient land bank, limited • Construction cost is funded • Minimal default rates levels incremental investment in through pre-sales of ~2% new land • On ave
Slide 13: Diversified Customer Base to Maintain Healthy Sales Traction
Diversified Customer Base to Maintain Healthy Sales Traction 9M 2019 Customer Mix – 9M 2019 Customer Mix – Residents vs. Non-residents Based on Nationality UAE Residents China India UAE KSA Others UK Non-Residents Pakistan Flight to Quality due to Strong Preference for Emaar’s Master Developments 12
Slide 14: Sufficient Land Bank to Deliver Long-term Growth
Sufficient Land Bank to Deliver Long-term Growth Land Bank Evolution Though Investments & Strategic Partners Year Area 2012 Arabian Ranches II (million sq ft) GFA BTS 2011-9M 2019 Multiple CAGR 2013 Dubai Hills Estate 22x ~50% 2014 Dubai Creek Harbour 369 2015 Emaar South 2016 Downtown Views, Ras Al
Slide 15: Business Strategy & Outlook
Business Strategy & Outlook 14 | EMAAR DEVELOPMENT
Slide 16: Our Assessment Of The Dubai's Economy
Our Assessment Of The Dubai’s Economy Dubai Economy Back on Recovery Dubai economy is expected to grow at 2.5% over 2019 - 2022 1 Tourism Growth Positive Tailwinds • Tourism is one of the pillars of • 10 Year Resident Visa Dubai’s economy Sustained Population Growth • 100% Foreign Investment • Dubai
Slide 17: Residential Real Estate To Gradually Move Towards Equilibrium
Residential Real Estate To Gradually Move Towards Equilibrium Key Factors Affecting Increased Affordability Residential Market Equilibrium Investment Attractiveness Supply Rationalisation • Dubai’s GDP Per Capita2 (PPP terms) - USD 59,419 in 2012 to USD 66,616 in 20181 • Historical avg. materializat
Slide 18: Development Strategy: Consolidate and Prepare for the Next Growth Phase
Development Strategy: Consolidate and Prepare for the Next Growth Phase Leverage the Strength Marketing to Well-planned Execution Product Innovations of Master Developments International Customers & Delivery • Leverage on the existing • Unique product offering for • Targeting international • Timely
Slide 19: Q3 & 9M 2019 Results Update
Q3 & 9M 2019 Results Update 18 | EMAAR DEVELOPMENT
Slide 20: 9M 2019 Key Highlights
9M 2019 Key Highlights Property Sales Revenues EBITDA AED 12.5 Bn AED 9.6 Bn AED 2.8 Bn +25% YoY Net Profit 19 Projects launched with a total value c. ~4,700 Units Delivered AED 2.1 Bn of c. AED 10.1 Bn Entered into JV Agreement c. AED 36.1 Bn to Develop ‘The Valley c. AED 5.3 Bn Revenue Backlog 2 G
Slide 21: 9M 2019 Key Highlights
9M 2019 Key Highlights AED Million 9M 2019 9M 2018 % Change Q3 2019 Q3 2018 % Change Property Sales 12,525 10,030 25% 3,175 3,796 (16%) Revenue 9,625 10,033 (4%) 3,388 3,043 11% Gross Profit 3,839 4,345 (12%) 1,263 1,266 (0%) Margin (%) 39.9% 43.3% - 37.3% 41.6% - EBITDA 2,834 3,719 (24%) 885 1,053
Slide 22: Balance Sheet & Cash Flow Overview
Balance Sheet & Cash Flow Overview Balance Sheet Overview Cash Flow Overview In AED Mn Total: AED 33,914 Mn 13% 6,789 Bank Balances & Cash Trade & Other 40% Payables (410) 40% (327) Trade & Other Receivables Advances from 4,317 Customers 11% Interest Bearing Loans (1,735) 12% & Borrowings 2% Other L
Slide 23: Project Development Status / Overview
Project Development Status / Overview 100% Owned Developments 100% Consolidated JV JV/JDAs with 50% Share Others Ras Al Khaimah (100% owned land Downtown Arabian Dubai Emirates Emaar Dubai Dubai Emaar Mina Rashid bank); Zabeel Total Dubai Ranches 5 Marina Living Beachfront 4 Hills Creek 3 South 3 Sq
Slide 24: Annexure
Annexure 23 | EMAAR DEVELOPMENT
Slide 25: Projects Overview
Projects Overview Wholly-owned projects Downtown Dubai Arabian Ranches Dubai Marina Emirates Living Emaar Beachfront * All under-construction Expansion of the current Two waterfront Green-focused development An exclusive residential projects (including Sky Arabian Ranches community residential/comme
Slide 26: UAE Development – Projects Overview
UAE Development – Projects Overview 100% Consolidated JV JVs/JDAs with 50% share Dubai Creek Dubai Hills Estate Mina Rashid Emaar South Zabeel Square The Valley Garden Harbour Joint Venture between Joint Venture between Joint Venture between Joint Venture between Joint venture between A gated commun
Slide 27: UAE Development – Projects Under Development
UAE Development – Projects Under Development Amount Area % Unit % Value % Collected of % Completion % Gross Margin Project (100% Owned) Units Launched Period (AED) (1) (SQF) Sold Sold sold units Sep.19 Sep19 (2) Downtown Dubai 8,620 30,237,929,400 10,988,509 93% 86% 44% 42% Fountain Views 3 208 1,14
Slide 28: UAE Development – Projects Under Development
UAE Development – Projects Under Development Amount Area % Unit % Value % Collected of % Completion % Gross Margin Project (Joint Ventures) Units Launched Period (AED) (1) (SQF) Sold Sold sold units Sep.19 Sep19 (2) Dubai Hills Estates (3) 7,028 14,782,919,438 9,658,601 81% 83% 41% 46% Acacia Park H
Slide 29: UAE Development – Projects Under Development
UAE Development – Projects Under Development Amount Area % Unit % Value % Collected of % Completion % Gross Margin Project (Joint Ventures) Units Launched Period (AED) (1) (SQF) Sold Sold sold units Sep.19 Sep19 (2) Dubai Creek Harbour 7,556 14,366,731,466 7,648,595 83% 74% 28% 31% Creekside 18 442
Slide 30: UAE Development – Location of Development Projects
UAE Development – Location of Development Projects Emaar Beachfront(1) Mina Rashid Lusaily(2) The Valley Garden Arabian Ranches I & II Arabian Ranches III (1) Emaar Beachfront partial acquisition completed and launched in Jan 2018. In March 2018 an MOU with Aldar was signed to jointly develop the pr
Slide 31: Expected Delivery Schedule
Expected Delivery Schedule Under Development Delivery Schedule Under Already Completed Development delivered in 2019 2020 2021 2022 2023 2019 - A - Emaar Development (fully consolidated) Downtown 12,356 8,620 1,279 1,758 773 3,985 2,104 - Emaar Beachfront - 1,842 - - - 1,248 - 594 Dubai Marina 4,450
Slide 32: JV / JDA Accounting Treatment
JV / JDA Accounting Treatment Accounting P&L Balance Sheet Impact on Return on Capital Dubai Hills – • 100% consolidation • 100% consolidation • Neutral impact on ROCE Consolidation • 50% Minority Interest • 50% Minority Interest Mina Rashid – • 100% consolidation • 100% consolidation • Neutral impa
Slide 33: 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 • Hotel owner and operator • Provider of premium developer in Dubai growth countries listed on DFM since (23 ho
Slide 34: Thank You
Thank You EMAAR DEVELOPMENT DICKENSON IR Name – Abhay Singhvi Name – Aakash Mehta / Mehul Mehta Email id - ASinghvi@emaar.ae Email id – emaar@dickensonworld.com 33 | EMAAR DEVELOPMENT
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