Dar Al Arkan Real Estate Development Co. · TADAWUL:4300
Dar Al Arkan Real Estate Development — FY2021 Earnings Presentation
30 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2022
Slide 1: Dar Al Arkan
DAR AL ARKAN uL_GNi jla
Slide 2: Investor Presentation FY 2021
Investor Presentation FY 2021 2
Slide 3: Table of Contents
Table of Contents Page No. 1. Macro Economic Overview & KSA Real Estate Market 4 2. Key Business Indicators Overview 9 3. Financial Performance Overview 12 4. Overview of Assets Portfolio 17 5. Appendix 23 3
Slide 4: Macro Economic Overview & KSA Real Estate Market
MACRO ECONOMIC OVERVIEW 1| & KSA REAL ESTATE MARKET 4
Slide 5: 2021 saw a return to growth that is expected to accelerate in 2022
Macroeconomic Overview 2021 saw a return to growth that is expected to accelerate in 2022 GDP Growth to Accelerate Deficit Turns to Surplus Average Brent Oil Prices in 2022 in 2022 80 8.0% 6% 71 71 64 7.4% 6.0% 3% 2.5% 60 54 1.1% 44 42.0 4.0% 4% 0% 0.8% 3.2% 3.5% 40 2019 2020 2021E 2022F 2023F 2024F
Slide 6: The strong long-term fundamentals of the market remain intact
KSA Real Estate Sector Overview The strong long-term fundamentals of the market remain intact Positive Demographic Trends Supply Shortages Government Support KSA Total Population (Age/Gender) Total population 34 million Population growth of 2.5% per year. Chronic under supply of residential hous
Slide 7: 2021 delivered a strong rebound in total transaction values
KSA Real Estate Sector Overview 2021 delivered a strong rebound in total transaction values 450 410 380 360 321 140.1 122.5 270 110.1 249 224 209 193 180 166 79.7 99.1 166 159 71.1 131 61.1 63.7 270.0 38.9 43.7 257.2 38.0 90 210.7 144.5 149.8 137.6 126.9 131.4 102.1 93.4 115.2 0 2011 2012 2013 2014
Slide 8: The Real Estate Price Index continues its positive momentum year over year in Q4 2021
KSA Real Estate Sector Overview The Real Estate Price Index continues its positive momentum year over year in Q4 2021 KSA Real Estate Price Index (YoY) KSA Real Estate Price Index (QoQ) 1.2% 0.9% 1.0% 0.9% 0.9% 0.9% 0.5% 0.3% 0.6% 0.5% 0.2% 0.4% 0.1% 0.3% 0.0% 0.0% -0.1% 0.0% -0.5% -0.3% -0.6% -0.3%
Slide 9: Key Business Indicators Overview
KEY BUSINESS INDICATORS 2| OVERVIEW 9
Slide 10: 2021 – Key Business Indicators
2021 – Key Business Indicators Investment In Revenues 28.2% EBITDA 17.5% Development Properties -9.7% SAR 2,493 mn SAR 847 mn SAR 2,254 mn (2020 : SAR 1,945 mn) (2020 : SAR 720 mn) (2020 : SAR 2,495 m) Gross Debt/ Cash And Bank Book Value Per Share Capitalization SAR 4,153 mn 33% SAR 17.7 (2020 : SA
Slide 11: Dar Al Arkan Real Estate Assets
Dar Al Arkan Real Estate Assets DAAR’s Real Estate assets portfolio at cost is SAR 20.8 bn. DAAR has a strong pipeline of projects across the Kingdom and Europe totaling 12.9 mn sqm. Real Estate Properties 57% Break up - SAR bn 33% Project Lands & Shams Ar Riyadh, Properties, 5.7 3.1 Investments
Slide 12: Financial Performance Overview
FINANCIAL PERFORMANCE 3| OVERVIEW 12
Slide 13: Financial Performance – 2021 Profitability
Financial Performance – 2021 Profitability Yearly Revenues (SAR mn) Gross Profit (SAR mn) & Margin (%) 7,000 6,412 1,200 42% 1,114 45% 1,057 36% 40% 6,000 4,735 1,000 78 35% 136 3,492 66 792 824 897 35% 5,000 2,493 800 24% 675 77 30% 1,870 150 4,000 1,945 72 97 25% 600 24% 3,000 6,276 1,036 992 87 2
Slide 14: Financial Performance – Q4 2021 Profitability
Financial Performance – Q4 2021 Profitability Quarterly Revenues (SAR mn) Gross Profit (SAR mn) & Margin (%) 1,500 600 41% 45% 40% 37% 37% 36% 40% 1,300 841 500 34% 35% 35% 1,100 593 400 27% 30% 464 391 496 555 25% 900 568 775 25% 700 34 595 300 268 29 213 197 205 208 217 20% 200 160 156 162 20 500
Slide 15: Financial Performance – 2021 Cash Flow
Financial Performance – 2021 Cash Flow Cash Flow – 2021 (SAR mn) Income / Sources of Cash Uses of Cash / Expenses 572 8,000 836 734 - 7,000 6,000 2,493 2,254 17 5,000 2 4,000 3,000 4,932 2,000 4,153 1,000 - Starting Cash Revenue New Debt Working Capital Debt Opex Investment in Investment in Maintena
Slide 16: Financial Performance – 2021 Debt
Financial Performance – 2021 Debt Gross Debt Vs Net Debt (SAR mn) Debt* / Capitalization 10,500 10,304 9,468 40% 35% 35% 33% 9,000 7,832 29% 4,932 30% 26% 26% 7,500 6,480 6,663 4,153 25% 23% 6,000 5,280 3,950 20% 582 3,160 4,500 21% 4,903 15% 18% 19% 3,000 5,372 5,315 10% 14% 15% 4,698 3,320 3,882 1
Slide 17: Overview of Assets Portfolio
OVERVIEW OF ASSETS 4| PORTFOLIO 17
Slide 18: Shams Ar Riyadh – Key Facts
Residential & Commercial Development Projects Shams Ar Riyadh – Key Facts Location - Situated in the Al-Ammariyah district (King Khalid Road), part of the growing northwest corridor of Riyadh, Shams Ar Riyadh is close to the heart of the city and is located just 19 km from KKI Airport and 9 km from
Slide 19: Residential & Commercial Development Projects
Residential & Commercial Development Projects Eastern Province Projects Urban Oasis Tower, Bosnia Projects Jeddah Projects Dubai - The site is situated located in Ravne, - Shams Al Arous is a master-planned, - Juman project is strategically located - The Urban Oasis Tower is located in Vareš, 38 km
Slide 20: Residential & Commercial Development Projects: Pagani Tower, Aida Oman
Residential & Commercial Development Projects Dar Al Arkan Pagani Tower, Dubai Aida, Oman - The Dar Al Arkan Pagani Tower is a residential building in Downtown Dubai - In Dec 2021, Dar Al Arkan signed an MOU with Omran to develop a 3.5 mn with interiors designed by Pagani and having a development va
Slide 21: Portfolio Summary – Completed Residential Properties
Portfolio Summary – Completed Residential Properties Parisiana South Parisiana Living Naeem Eljiwar Dar Al Mashaer - Located in Riyadh city and easily - Located within the - Located in holy city of Mecca on the - Located in Riyadh city and accessed through King Fahad boundary of the Prophet’s Al Azi
Slide 22: Leasing Properties Portfolio
Leasing Properties Portfolio Al-Qasr Mall, Riyadh Land Area 61,949 m² Built up Area 220,202m² Gross Leasable Area 76,665 m² No. of floors 3 Leasable Floors plus two parking Parking 1,579 Parking Spaces Latest Activity: By the end of 2021, 95% occupancy achieved compared to 91% in 2020 2021 saw a
Slide 23: Appendix
APPENDIX 5| 23
Slide 24: Appendix I – Statement of Financial Position
Appendix I – Statement of Financial Position SAR in 000s FY 2018 FY 2019 FY 2020 FY 2021 Investment properties, net 1,693,141 1,651,357 1,519,116 1,110,414 Long-term development properties 14,148,262 16,895,604 18,246,583 19,285,287 Property and equipment, net 83,085 79,765 72,180 77,653 Investment
Slide 25: Appendix II – Statement of Profit or Loss
Appendix II – Statement of Profit or Loss SAR in 000s FY 2019 FY 2020 Q4 2020 Q4 2021 FY 2021 Revenue 3,491,856 1,944,854 496,255 775,065 2,493,078 Cost of revenue (2,667,416) (1,270,204) (299,323) (507,128) (1,596,350) Gross profit 824,440 674,650 196,932 267,937 896,728 % 23.6% 34.7% 39.7% 34.6% 3
Slide 26: Appendix III – Statement of Cash Flows
Appendix III – Statement of Cash Flows SAR in 000s FY 2018 FY 2019 FY 2020 FY 2021 Profit before Zakat 521,855 312,389 19,379 135,442 Adjustments for: Depreciation & Amortization 78,355 55,653 56,237 48,905 Provision for expected credit losses 0 2,000 2,516 4,453 End of service indemnities 4,122 4,3
Slide 27: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE OR himself independently based solely on the prospectus in relation to such securities DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, (including any supplement thereto) available when orders are confirmed before taking JAPAN
Slide 28: Our Offices
OUR OFFICES RIYADH, KSA BEIJING, CHINA LONDON, UK MARBELLA, DUBAI, UAE 12622 Makkah Road, 303-309, North Tower, 50 Hans Crescent, Conrad Dubai, Al Wizarat, Beijing Kerry Centre, Knightsbridge, SPAIN Sheikh Zayed Road, Beside Riyadh Marriott Hotel, No.1 Guanghua Road, London, SW1X ONA Marbella’s Gold
Slide 29: 29
29
Slide 30: Thank you
Investor Relations Thank you Riyadh – Saudi Arabia Tel: +966 11 206 9888 Ext:1670 ir@alarkan.com 30
Dar Al Arkan Real Estate Development — FY2021 Earnings Presentation on 6ix