Emaar Development Pjsc · DFM:EMAARDEV
Emaar Development Pjsc — Investor Presentation (April 2019)
33 slides from Emaar Development Pjsc's investor presentation, April 2019
Slide 1: Emaar Development PJSC Investor Presentation
Emaar Development PJSC An Enduring Enterprise. Prepared for the Up-cycle Investor Presentation April 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 FY & Q4 2018 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 • 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 Bn (25%
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 Dividend Distribution on Well-Positioned to Sustain Target Dividend Policy Track for 2018 Future Dividend Payments Robust Cash Flow Generation Target aggregate Total AED 2.08 Bn dividends • Robust OCF supported by robust to be
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 Customer Mix – Customer Mix – Residents vs. Non-residents Based on Nationality UAE Residents China India UAE KSA Others UK Non-Residents Pakistan Corporates Flight to Quality due to Strong Preference for Emaar’s Master Developments 12 | EM
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 2011-2018 Multiple CAGR 2013 Dubai Hills Estate 16x +49% 2014 Dubai Creek Harbour 231 233 234 234 2015 Emaar South 211 211 198 199 20
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 IMF expects higher GDP growth in 2019 4.1% for Dubai (2018: 2.8%) and 3.7% for UAE (2018: 2.9%) Tourism Growth Positive Tailwinds • Tourism is one of the pillars of • 10 Year Resident Visa Dubai’s economy Sustained Population Growt
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 67,293 in 20171 • 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: FY & Q4 2018 Results Update
FY & Q4 2018 Results Update 18 | EMAAR DEVELOPMENT
Slide 20: FY 2018 Key Highlights
FY 2018 Key Highlights Revenues EBITDA Net Profit AED 15.4 Bn AED 5.7 Bn AED 3.9 Bn +74% YoY +75% YoY +42% YoY Resilient Property Sales 16 Projects Launched in c. 1,000 Units Delivered AED 14.2 Bn 2018 with a total value of c. 29,000 Units Under 6,502 units sold c. AED 13 Bn Construction c. AED 36.3
Slide 21: Q4 & FY 2018 Key Highlights
Q4 & FY 2018 Key Highlights AED Million Q4 2018 Q4 2017 % Change FY 2018 FY 2017 % Change Property Sales 4,210 2,631 60% 14,240 18,034 (21%) Revenue 5,400 2,355 129% 15,433 8,863 74% Gross Profit 2,355 1,011 133% 6,700 3,761 78% Margin (%) 43.6% 42.9% - 43.4% 42.4% - EBITDA 1,939 862 125% 5,657 3,23
Slide 22: Balance Sheet & Cash Flow Overview
Balance Sheet & Cash Flow Overview Balance Sheet Overview Cash Flow Overview In AED Mn Total: AED 30,578 Mn Bank Balances & Cash 22% Trade & Other 34% Payables 1,827 7,755 6,789 Trade & Other Receivables 35% Advances from 17% Customers (1,328) (1,465) Interest Bearing Loans 13% & Borrowings 2% Other
Slide 23: Current Project Development Status
Current Project Development Status 100% Owned Developments 100% Consolidated JV JV/JDAs with 50% Share Downtown Arabian Dubai Emirates Emaar Dubai Dubai Emaar 4 3 3 Total Dubai Ranches Marina Living Beachfront Hills Creek South # Units 9,714 752 840 562 1,253 7,869 6,418 1,797 29,205 # Area (Mn 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: Projects Overview
Projects Overview 100% Consolidated JV JVs/JDAs with 50% share Dubai Hills Estate Dubai Creek Harbour Emaar South Zabeel Square Joint Venture between Emaar and Joint Venture between Emaar and Joint Venture between Emaar and Joint venture between Emaar and Meraas Holding to create a mixed- Dubai Hold
Slide 27: Projects Under Development
Projects Under Development *Projects launched in phases 1) Total monetary value of units under development based on expected selling price 3) Emaar Beachfront partial acquisition completed and launched in Jan # ED’s percentage of share is 61.25% 2) Corresponds to gross margin for units sold not nece
Slide 28: Projects Under Development (cont'd)
Projects Under Development (cont’d) *Projects launched in phases 1) Total monetary value of units under development based on expected selling price 3) Dubai Hills Estates does not include land plots available for sale 2) Corresponds to gross margin for units sold not necessarily indicative of margin
Slide 29: Location of Development Projects
Location of Development Projects 28 | EMAAR DEVELOPMENT
Slide 30: Expected Delivery Schedule
Expected Delivery Schedule Under Development Delivery Schedule Under Completed Cumulative till Development 2019 2020 2021 2022 2018 - A - Emaar Development (fully consolidated) Downtown 11,077 9,714 10,411 3,298 2,036 2,274 2,106 Emaar Beachfront - 1,253 - - - 1,253 - Dubai Marina 4,450 840 4,450 -
Slide 31: 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 • Higher ROCE as Development Dubai Creek – • 50% profit recognised as
Slide 32: 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 (19 ho
Slide 33: Thank You
Thank You EMAAR DEVELOPMENT DICKENSON IR Name – Abhay Singhvi Name – Nilesh Dalvi / Mehul Mehta Email id - ASinghvi@emaar.ae Email id – emaar@dickensonworld.com 32 | EMAAR DEVELOPMENT
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