Dar Al Arkan Real Estate Development Co. · TADAWUL:4300

Dar Al Arkan Real Estate Development — Q1 2019 Earnings Presentation

23 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2019

  1. Slide 1: Investor Presentation Q1 2019

    Investor Presentation Q1, 2019 www.daralarkan.com

  2. Slide 2: Table of Contents

    Table of Contents Content Page No. 1. Macro Economic Overview & KSA Real Estate Market 3 2. Overview of Dar Al Arkan 6 3. Financial Performance Overview 10 4. Overview of Assets Portfolio 14 5. Appendix 18 2

  3. Slide 3: Macro Economic Overview & KSA Real Estate Market

    Divider Page 1. Macro Economic Divider Page& KSA Overview Real Estate Market 3

  4. Slide 4: Macroeconomic Overview

    Macroeconomic Overview The Kingdom’s expansionary and largest ever Budget for 2019 of SAR 1.1 trillion shows government’s commitment to drive economic growth and is in line with Vision 2030's objectives. This, along with opening KSA further for business, is expected to boost and diversify the econom

  5. Slide 5: KSA Real Estate Sector Overview

    KSA Real Estate Sector Overview Value of Real Estate Transactions in KSA (SAR bn) KSA Real Estate Price Index (QoQ) 1.0% 80 0.0% 27.1 -0.3% -0.5% -0.4% -0.6% -0.6% -0.7% 60 -1.0% -1.6% 19.5 13.6 -2.3% 40 13.4 13.9 17.4 -2.0% -2.3% 11.6 8.9 50.6 7.3 20 36.4 36.8 33.4 31.9 -3.0% 26.5 27.1 -3.5% 23.4 1

  6. Slide 6: Overview of Dar Al Arkan

    2. Overview of DarDivider Page Al Arkan Divider Page

  7. Slide 7: Company Overview

    Company Overview Prudent Real Estate Acquisition Strong Financial Position Diversification Strategies Paying Off In soft market conditions, management’s DAAR maintains a strong balance sheet with DAAR’s strategy is to generate revenue rigorous acquisition policies are proving SAR 8.3 bn in cash and

  8. Slide 8: Q1 2019 – Key Business Indicators

    Q1 2019 – Key Business Indicators Investment in Revenues (LTM) -38% EBITDA (LTM) -45% Development Properties (LTM) +167% SAR 4,442 mn SAR 792 mn SAR 4,124 mn (At Q1 2018 : SAR 7,168 mn) (At Q1 2018 : SAR 1,447 mn) (At Q1 2018 : SAR 1,545 mn) Gross Debt/ Cash and Bank Book Value Per Share Capitalizat

  9. Slide 9: Dar Al Arkan Real Estate Assets

    Dar Al Arkan Real Estate Assets  DAAR’s total Real Estate Properties as per the financial  DAAR has a strong pipeline of projects across the Kingdom statements is SAR 16.6 bn. totaling 12.4 mn sqm. Real Estate Properties Break up - SAR bn Projects Lands Break up (Sqm) Al Tilal Shams Al 0.2 mn Arou

  10. Slide 10: Financial Performance Overview

    Divider Page 3. Financial DividerPerformance Page Overview 10

  11. Slide 11: Financial Performance – Q1 2019 Profitability

    Financial Performance – Q1 2019 Profitability Quarterly Revenues (SAR mn) Gross Profit (SAR mn) & Margin (%) 500 38% 40% 3,000 35% 2,794 465 475 2,500 400 24% 30% 2,435 2,000 300 19% 15% 19% 1,500 1,785 353 17% 17% 18% 20% 1,483 200 1,000 988 266 165 10% 846 824 100 160 152 159 500 136 360 456 - 0 0

  12. Slide 12: Financial Performance – Q1 2019 Cash Flow

    Financial Performance – Q1 2019 Cash Flow Cash Flow – Q1 2019 (SAR mn) 8,000 Sources of Cash Uses of Cash 6,000 440 120 1,101 3 824 233 4,000 4,903 4,710 2,000 - Starting Cash Revenue Working Capital Opex Investment in Maintenance Debt Repayment Ending Cash Properties capex  DAAR’s liquidity positi

  13. Slide 13: Financial Performance – Q1 2019 Debt

    Financial Performance – Q1 2019 Debt Gross Debt Vs Net Debt (SAR mn) Debt* / Capitalization 40% 9,000 8,272 6,995 6,938 6,830 6,747 6,663 7,500 6,480 6,430 30% 26% 25% 26% 22% 25% 6,000 5,224 2,674 2,959 5,240 3,160 20% 4,500 875 22% 4,937 5,160 4,903 4,710 21% 3,000 10% 14% 4,349 4,321 3,979 1,500

  14. Slide 14: Overview of Assets Portfolio

    Divider Page Divider Pageof 4. Overview Assets Portfolio

  15. Slide 15: Residential & Commercial Development Projects

    Residential & Commercial Development Projects Riyadh Projects Jeddah Projects Eastern Province Projects I Love Florence, Dubai - Situated in the Al-Ammariyah district - The site is situated 12 kms from - The project is located in the - The I Love Florence Tower project is (King Khalid Road), part of

  16. Slide 16: Portfolio Summary – Completed Residential Properties

    Portfolio Summary – Completed Residential Properties Parisiana South Parisiana Living Naeem Eljiwar - Located in Riyadh city and easily accessed - Located in Riyadh city and easily - Located within the boundary of the through King Fahad Road and major accessed through King Fahad Road, Prophet’s Mosq

  17. Slide 17: Leasing Properties Portfolio

    Leasing Properties Portfolio Al-Qasr Mall, Riyadh Land Area 61,949 m² Built up Area 220,202 m² Gross Leasable Area 78,958 m² No. of floors 3 Leasable Floors plus two parking Latest Activity: Cinema multiplex with 15 screens opened in March 2019. New casual dining tenants being added to complement th

  18. Slide 18: Appendix

    Divider Page Divider 5. Page Appendix

  19. Slide 19: Appendix I – Statement of Profit or Loss

    Appendix I – Statement of Profit or Loss SAR in 000s FY 2017 FY 2018 Q1 – 2018 Q1 – 2019 Revenue 4,734,687 6,412,265 2,793,913 823,678 Cost of revenue (3,620,675) (5,355,116) (2,319,302) (664,394) Gross profit 1,114,012 1,057,149 474,611 159,284 % 23.5% 16.5% 17.0% 19.3% Operating expenses (157,106)

  20. Slide 20: Appendix II – Statement of Financial Position

    Appendix II – Statement of Financial Position SAR in 000s FY 2017 FY 2018 Q1 – 2018 Q1 - 2019 Investment properties, net 3,290,010 1,693,141 3,272,470 1,683,121 Long-term development properties 14,751,565 14,148,262 12,814,180 14,602,379 Property and equipment, net 70,925 83,085 78,500 82,458 Invest

  21. Slide 21: Appendix III – Statement of Cash Flows

    Appendix III – Statement of Cash Flows SAR in 000s FY 2017 FY 2018 Q1 – 2018 Q1 – 2019 Profit before Zakat 567,811 521,855 339,608 26,167 Adjustments for: Depreciation 76,775 78,355 19,356 13,413 Amortization 0 0 0 252 End of service indemnities 5,129 4,122 1,236 601 Finance costs 441,523 511,652 12

  22. Slide 22: Disclaimer

    Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES. THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS P

  23. Slide 23: Thank you

    Investor Relations Riyadh – Saudi Arabia Thank you Tel: +966 11 206 9888 Ext:1670 ir@alarkan.com

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