Dar Al Arkan Real Estate Development Co. · TADAWUL:4300
Dar Al Arkan Real Estate Development — Q2 2021 Earnings Presentation
25 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2021
Slide 1: Investor Presentation Q2 2021
Investor Presentation Q2 2021 daralarkan.com
Slide 2: Table of Contents
Table of Contents Page No. 1. Macro Economic Overview & KSA Real Estate Market 3 2. Key Business Indicators Overview 8 3. Financial Performance Overview 11 4. Overview of Assets Portfolio 15 5. Appendix 20 2
Slide 3: Macro Economic Overview & KSA Real Estate Market
1 | Macro Economic Overview & KSA Real Estate Market 3
Slide 4: Macroeconomic Overview: oil demand and pricing support economic growth
Macroeconomic Overview The Increase in Oil demand and pricing supports a return of economic growth and reduction in the budget deficit Average Brent Oil Prices GDP to Recover in 2021 Deficit to Expand in 2020 80 6.0% 0% 71 69 2018 2019 2020E 2021F 2022F 64 5.1% -0.5% 60 54 4.0% -3% -3.3% -4.5% 44 42
Slide 5: KSA Real Estate Sector Overview: long-term fundamentals intact
KSA Real Estate Sector Overview However, the 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 ho
Slide 6: A strong start to 2021 delivering over SAR 99 billion in transaction values
KSA Real Estate Sector Overview A strong start to 2021 delivering over SAR 99 billion in transaction values 450 410 380 360 321 140.1 122.5 249 270 224 110.1 209 166 166 159 180 126 79.7 99.1 131 71.1 63.7 270.0 38.9 43.7 257.2 38.0 90 56.1 210.7 144.5 149.8 137.6 126.9 102.1 93.4 115.2 69.6 0 2010
Slide 7: Real Estate Price Index continues positive momentum year over year in Q2 2021
KSA Real Estate Sector Overview The Real Estate Price Index continues its positive momentum year over year in Q2 2021 KSA Real Estate Price Index (YoY) KSA Real Estate Price Index (QoQ) 0.9% 0.9% 1.0% 0.9% 0.7% 0.5% 0.6% 0.3% 0.4% 0.4% 0.1% 0.0% 0.3% 0.2% 0.0% -0.4% -0.1% -0.6% 0.0% -0.3% -0.3% -1.0
Slide 8: Key Business Indicators Overview
2 | Key Business Indicators Overview
Slide 9: Q2 2021 – Key Business Indicators
Q2 2021 – Key Business Indicators Investment In Revenues (LTM) -28.2% EBITDA (LTM) -8.3% Development Properties (LTM) -34% SAR 2,010 mn SAR 771 mn SAR 2,695 mn (Q2 2020 : SAR 2,798 mn) (Q2 2020 : SAR 841 mn) (Q2 2020 : SAR 4,069 m) Gross Debt/ Cash And Bank Book Value Per Share Capitalization SAR 4,
Slide 10: Dar Al Arkan Real Estate Assets
Dar Al Arkan Real Estate Assets DAAR’s Real Estate assets portfolio at cost is SAR 20.2 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 Investments in & Properties, 5.1 Juman* Shams Ar R
Slide 11: Financial Performance Overview
3 | Financial Overview Performance 11
Slide 12: Financial Performance – Q2 2021 Profitability
Financial Performance – Q2 2021 Profitability Quarterly Revenues (SAR mn) Gross Profit (SAR mn) & Margin (%) 1,200 500 45% 41% 40% 37% 37% 40% 1,000 928 899 34% 841 400 35% 800 36 37 28% 27% 30% 25% 34 300 22% 593 568 251 25% 600 555 213 208 464 496 202 197 205 20% 37 391 30 28 200 26 160 162 892 86
Slide 13: Financial Performance – Q2 2021 Cash Flow
Financial Performance – Q2 2021 Cash Flow Cash Flow – Q2 2021 (SAR mn) Income / Sources of Cash Uses of Cash / Expenses 6,000 178 - 162 627 0 5,000 568 1 4,000 3,000 4,549 4,299 2,000 1,000 - Starting Cash Revenue New Debt Working Capital Debt Opex Investment in Investment in Maintenance Ending Cash
Slide 14: Financial Performance – 2021 Debt
Financial Performance – 2021 Debt Gross Debt Vs Net Debt (SAR mn) Debt* / Capitalization 12,000 40% 10,369 10,304 10,224 10,061 34% 35% 35% 35% 35% 9,774 32% 10,000 9,163 29% 7,832 30% 8,000 4,932 4,549 4,299 5,884 5,782 5,699 4,880 5,486 6,000 3,950 20% 19% 20% 18% 4,000 3,472 3,888 15% 15% 15% 15%
Slide 15: Overview of Assets Portfolio
4 | Overview of Assets Portfolio
Slide 16: 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 17: Residential & Commercial Development Projects
Residential & Commercial Development Projects Eastern Province Projects Urban Oasis (I Love Bosnia Projects Jeddah Projects Florence), Dubai - The site is situated located in Ravne, - The site is situated 12 kms from CBD - The project is located in the Eastern - The Urban Oasis (previously known Var
Slide 18: Portfolio Summary – Completed Residential Properties
Portfolio Summary – Completed Residential Properties Parisiana South Parisiana Living Naeem Eljiwar Dar Al Mashaer - Located in Riyadh city and - Located in Riyadh city and easily - Located within the - Located in Mecca city easily accessed through accessed through King Fahad boundary of the Prophet
Slide 19: Leasing Properties Portfolio
Leasing Properties Portfolio Al-Qasr Mall, Riyadh Land Area 61,949 m² Built up Area 220,202m² Gross Leasable Area 78,958 m² No. of floors 3 Leasable Floors plus two parking Parking 1,579 Parking Spaces Latest Activity: 85% occupancy achieved Cinema multiplex with 15 screens opened in 2019 Bowl
Slide 20: Appendix
DAR AL ARKAN uL_<jXI jl> 5 Appendix
Slide 21: Appendix I – Statement of Profit or Loss
Appendix I – Statement of Profit or Loss SAR in 000s FY 2019 FY 2020 H1 2020 H1 2021 Q2 2020 Q2 2021 Revenue 3,491,856 1,944,854 1,057,364 1,122,600 464,343 567,764 Cost of revenue (2,667,416) (1,270,204) (741,285) (710,332) (308,296) (360,035) Gross profit 824,440 674,650 316,079 412,268 156,047 20
Slide 22: Appendix II – Statement of Financial Position
Appendix II – Statement of Financial Position SAR in 000s FY 2019 FY 2020 Q2 – 2020 Q2 - 2021 Investment properties, net 1,651,357 1,519,116 1,630,050 1,131,123 Long-term development properties 16,895,604 18,246,583 16,849,299 18,787,130 Property and equipment, net 79,765 72,180 76,280 78,204 Invest
Slide 23: Appendix III – Statement of Cash Flows
Appendix III – Statement of Cash Flows SAR in 000s FY 2019 FY 2020 H1-2020 H1-2021 Profit before Zakat 312,389 19,379 23,369 52,266 Adjustments for: Depreciation & Amortization 55,653 56,237 28,082 25,183 Provision for expected credit losses 2,000 2,516 0 1,939 End of service indemnities 4,313 3,884
Slide 24: 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 25: Thank you
Investor Relations Riyadh – Saudi Arabia Thank you Tel: +966 11 206 9888 Ext:1670 ir@alarkan.com
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