Emaar Development Pjsc · DFM:EMAARDEV
Emaar Development Pjsc — 9M 2021 Earnings Presentation
34 slides from Emaar Development Pjsc's earnings presentation, Dec 7, 2021
Slide 1: Emaar Development PJSC Investor Presentation
Emaar Development PJSC Investor Presentation December 2021 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 9M 2021 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 9M-21 • Burj Khalifa – Tallest Building in the World • Revenue ~AED 11.6 Bn • Dubai Marina – Largest Man-Made Marina1 (3.5 sq.km.) development of its kind • EBITDA ~AED 3.4 Bn • Dubai Fountain – Wor
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 Revenues In AED Mn Gross Profit In AED Mn 15,433 6,700 12,746 11,604 5,061 8,863 9,758 4,380 3,761 3,478 6,899 2,861 5,253 2,395 2015 2016 2017 2018 2019 2020 9M' 21 2015 2016 2017 2018 2019 2020 9M' 21 EBITDA In AED Mn Net Profit After Minority Interest In AED Mn 5,6
Slide 8: Consistently Ahead of the Competition
Consistently Ahead of the Competition Emaar Development Maintained Robust Sales Trend over 2015 to 9M 2021 Robust Sales – Ahead of the Competition1 (~5x in 2021) In AED Bn 20.9 18.0 ✓ Displayed strong sales traction. 14.4 14.2 14.8 10.2 9.1 7.0 7.5 6.3 4.3 3.1 2.3 4.1 ✓ Significant long-term value c
Slide 9: Business Overview
Business Overview 8 | EMAAR DEVELOPMENT
Slide 10: 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 11: 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 ~1.2% of sales value
Slide 12: Diversified Customer Base to Maintain Healthy Sales Traction
Diversified Customer Base to Maintain Healthy Sales Traction 9M-21 Customer Mix – 9M-21 Customer Mix – Residents vs. Non-residents Based on Nationality India Others UAE China Non Resident 40% Resident 60% UK Russia Rest of Europe Iran France Pakistan Flight to Quality due to Strong Preference for Em
Slide 13: 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- 2021 Multiple CAGR 2013 Dubai Hills Estate ~22x ~35% 2014 Dubai Creek Harbour 369 369 369 2015 Emaar South 2016 Downtown Views,
Slide 14: Business Strategy & Outlook
Business Strategy & Outlook 13 | EMAAR DEVELOPMENT
Slide 15: 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 16: 9M 2021 Results Update
9M 2021 Results Update 15 | EMAAR DEVELOPMENT
Slide 17: 9M 2021 Key Highlights
9M 2021 Key Highlights Property Sales Revenue EBITDA ~AED 20.9 Bn ~AED 11.6 Bn ~AED 3.4 Bn Net Profit Default Rate ~1.2% of Sales c. 3,700 Units Delivered ~AED 2.4 Bn Value c. 25,000 units under c. AED 28.5 Bn c. AED 7.0 Bn construction to be delivered Revenue Backlog1 Escrow Balance2 in next 4 year
Slide 18: 9M 2021 Key Highlights
9M 2021 Key Highlights AED Million 9M 2021 9M 2020 % Change Property Sales 20,943 4,343 382% Revenue 11,604 7,133 63% Gross Profit 4,380 2,524 74% Margin (%) 37.7% 35.4% - EBITDA 3,352 1,726 94% Margin (%) 28.9% 24.2% - Net Profit 2,384 1,359 75% Margin (%) 20.5% 19.0% - Total Equity 15,566 13,230 1
Slide 19: Balance Sheet & Cash Flow Overview
Balance Sheet & Cash Flow Overview Balance Sheet¹ Overview Cash Flow Overview In AED Mn Total: AED 37,823 Mn Loans & Investments in 4% Non-Controlling 5% Associates and JVs Interests Shareholder's Trade & Other 36% 50% Equity Receivables Interest Bearing Loans & Borrowings 10% Advances from Developm
Slide 20: Project Development Status / Overview
Project Development Status / Overview 100% Owned Developments 100% Consolidated JV JV/JDAs with 50% Share Others Ras Al Khaimah (100% Downtown Arabian Dubai Emaar Dubai Dubai Emaar owned land bank); 4 The Valley Mina Rashid Total Dubai Ranches Marina Beachfront Hills Creek 3 South 3 Zabeel Square (J
Slide 21: Annexure
Annexure 20 | EMAAR DEVELOPMENT
Slide 22: Projects Overview
Projects Overview Wholly-owned projects Downtown Dubai Arabian Ranches Dubai Marina Emirates Living Emaar Beachfront The Valley Garden All under-construction Expansion of the Two waterfront Green-focused An exclusive residential A gated community projects (including Vida current Arabian residential/
Slide 23: UAE Development – Projects Overview
UAE Development – Projects Overview 100% Consolidated JV JVs/JDAs with 50% share Dubai Hills Estate Mina Rashid Dubai Creek Harbour Emaar South Zabeel Square Joint Venture between Joint Venture between Joint Development Joint Venture between Joint venture between Emaar and Meraas Holding Emaar and M
Slide 24: UAE Development – Projects Under Development (100% Owned)
UAE Development – Projects Under Development (100% Owned) % Remaining Collections of Sold Value Project Value Area Launch % Collected of % Completion % Gross Margin Till Post Project (100% Owned) Units % Unit Sold % Value Sold Total (AED Mn)(1) (SQF) Period sold value Sep-21 Sep-21² Handover Handove
Slide 25: UAE Development – Projects Under Development (JVs)
UAE Development – Projects Under Development (JVs) % Remaining Collections of Sold Value Project Value Area Launch % Collected of % Completion % Gross Margin Till Post Project (Joint Ventures) Units % Unit Sold % Value Sold Total (AED Mn)(1) (SQF) Period sold value Sep-21 Sep-21² Handover Handover D
Slide 26: UAE Development – Projects Under Development (JVs)
UAE Development – Projects Under Development (JVs) % Remaining Collections of Sold Value Project Value Area Launch % Collected of % Completion % Gross Margin Till Post Project (Joint Ventures) Units % Unit Sold % Value Sold Total (AED Mn)(1) (SQF) Period sold value Sep-21 Sep-21² Handover Handover D
Slide 27: UAE Development – Completed Projects (100% Owned)
UAE Development – Completed Projects1 (100% Owned) Project Value Area % Collected of sold % Remaining Collections Project (100% Owned) Units % Unit Sold % Value Sold (AED Mn)(2) (SQF) value of Sold Value Downtown Dubai 5,610 21,736 8,167,016 98% 97% 95% 5% Blvd Heights 550 1,808 773,089 92% 88% 85%
Slide 28: UAE Development – Completed Projects (JVs)
UAE Development – Completed Projects1 (JVs) Project Value Area % Collected of sold % Remaining Collections Project (Joint Ventures) Units % Unit Sold % Value Sold (AED Mn)(2) (SQF) value of Sold Value Dubai Hills Estates 6,806 22,646 20,289,711 97% 97% 83% 17% Park Heights I 270 317 216,135 94% 88%
Slide 29: UAE Development – Location of Development Projects
UAE Development – Location of Development Projects 28 | EMAAR DEVELOPMENT
Slide 30: Expected Delivery Schedule
Expected Delivery Schedule Under Development Delivery Schedule Under Completed Development 9M'2021 Q4'2021 2022 2023 2024 2025 - A - Emaar Development (fully consolidated) Downtown* 14,694 7,017 478 - 2,582 3,388 1,047 - Emaar Beachfront - 3,612 - 457 460 624 1,030 1,041 Dubai Marina 4,936 360 486 -
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 Mina Rashid • 100% consolidation – • 30% Management Fee • 100% consoli
Slide 32: Divisions Overview
Divisions 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 (31 hote
Slide 33: Group Structure
Group Structure* EMAAR PROPERTIES PJSC (3) DOMESTIC REAL ESTATE INTERNATIONAL MALLS HOSPITALITY GROUP OPERATIONS LEISURE & ENTERTAINMENT OTHERS 22.95% (48.1%) Limited Companies (1) Only built projects are held by Emaar Development and JV partners. Build to lease and operate (BTL/BTO) projects are di
Slide 34: Thank You
Thank You EMAAR DEVELOPMENT Name – Abhay Singhvi Email id - ASinghvi@emaar.ae 33 | EMAAR DEVELOPMENT
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