Emaar Properties (p.j.s.c) · DFM:EMAAR
Emaar Properties (p.j.s.c) — FY2013 Earnings Presentation
45 slides from Emaar Properties (p.j.s.c)'s earnings presentation, Mar 10, 2014
Slide 1: Emaar Properties PJSC Corporate Presentation
Emaar Properties PJSC Corporate Presentation March 10th, 2014 © Emaar 2014
Slide 2: Emaar Overview
EMAAR OVERVIEW © Emaar 2014 2
Slide 3: EMAAR at a Glance
EMAAR at a Glance Emaar Properties is the largest publicly-listed property developer in the MENA region Market Cap(1): AED 57.02 bn (US $15.52 bn) Revenues: FY 2010 AED 12.15 bn (US $ 3.31 bn) FY 2011 AED 8.11 bn (US $ 2.21 bn) FY 2012 AED 8.24 bn (US $ 2.24 bn) FY 2013 AED 10.33 bn (US $ 2.81 bn) N
Slide 4: EMAAR's Strategy & Goals
EMAAR’s Strategy & Goals Business Strategy: To replicate our Dubai business model and practices in international markets, leveraging our execution capabilities and competencies in design, project management and distribution/sales Our international land bank includes approx. 226* million sqm across I
Slide 5: EMAAR's Business Strategy – Mid Term
EMAAR’s Business Strategy – Mid Term • Take advantage of the recent buoyancy in Dubai’s Real Estate market by developing new iconic projects • Enter into Joint ventures in Dubai to get access to significant land bank with no commitment for land cost • Develop Rental / Mall assets in other countries
Slide 6: EMAAR Group 2013 Performance Highlights
EMAAR Group 2013 Performance Highlights • Dubai and International RE: Handover of 2,072 residential units in Dubai and International during 2013. In Dubai, 1,653 residential units were handed over and around 147,000 sq. ft. of commercial space were delivered during the year. Currently, more than 122
Slide 7: EMAAR Group 2013 Performance Highlights Cont'd
EMAAR Group 2013 Performance Highlights Cont’d Profitability for the year ended 31st December 2013 | • Revenues for 2013 were AED 10.33 bn (versus 2012 AED 8.24 bn) • Net Operating Profit of 2013 was AED 2.57 bn (versus 2012 AED 2.12 bn) Balance Sheet as at 30th September 2013 | remains robust • Tot
Slide 8: EMAAR Key Group Divisions
EMAAR Key Group Divisions Property Property Malls Hotels Development Development and Resorts & UAE International Retail Hospitality •Market leading • Active in 10 • Current retail • Developer, owner developer in Dubai targeted high space of over and manager of Armani branded Developer of the growth
Slide 9: Strong Record of Execution
Strong Record of Execution 40,000 37,351 33,500 35,279 32,673 35,000 29,454 30,000 26,378 21,402 21,477 25,000 18,289 19,791 17,794 16,192 14,686 20,000 12,152 12,918 8,217 15,000 5,965 10,000 4,870 14,226 14,736 14,879 15,211 15,488 15,874 13,185 5,000 8,048 10,227 - 2005 2006 2007 2008 2009 2010 2
Slide 10: Investment Highlights
INVESTMENT HIGHLIGHTS © Emaar 2014 10
Slide 11: Shareholder's Value – NAV Computation
Shareholder’s Value – NAV Computation (AED million) 2012 2011 Book value Fair value Book value Fair value Cash and bank balances 3,711 3,711 2,865 2,865 Trade and other receivables 3,559 3,559 3,535 3,535 Development properties 26,998 43,181 26,611 37,726 Investment in associates 6,428 6,351 6,684 6
Slide 12: Shareholder's Value – NAV Computation
Shareholder’s Value – NAV Computation (AED million) 2012 2011 Net Asset Value as per consolidated balance sheet 32,534 31,308 Add: Fair value in excess of book value for Development properties 15,547 10,591 Add: Fair value of assets in excess of book value for Investment 8,281 6,506 Properties Add:
Slide 13: Evolution of Emaar Group Revenue
Evolution of Emaar Group Revenue Segment-wise Revenue 4,800 5,000 4,361 4,096 4,000 3,265 3,036 AED m illions 2,880 3,000 41% 1,811 50% 37% 2,000 36% 1,136 1,167 22% 14% 46% 42% 1,000 12% - 2011 2012 2013 Dubai Operations Leasing & Hospitality International © Emaar 2014 13
Slide 14: Fair Value of Development Properties
Fair Value of Development Properties (AED million) 2012 2011 Book value Fair value Book value Fair value UAE 13,653 19,195 14,097 17,254 Egypt 5,700 13,553 5,126 10,382 India 77 77 79 79 Turkey 3,160 3,848 2,811 3,670 KSA 1,574 2,527 1,638 1,911 Pakistan 757 1,341 634 1,427 Canada & USA 898 898 938
Slide 15: Fair Value of Investment Properties
Fair Value of Investment Properties (AED million) 2012 2011 Book value Fair value Book value Fair value Dubai Mall & Marina Mall 6,399 13,429 6,586 11,986 Burj Dubai (Souk Al Bahar and other 478 817 456 766 retail locations) Burj Dubai Business Square 153 349 159 394 Gold & Diamond Park 173 337 176
Slide 16: Fair Value of Fixed Assets
Fair Value of Fixed Assets (AED million) 2012 2011 Book value Fair value Book value Fair value Hotels, Convention centre & Service Appartments 4,186 6,424 4,370 6,244 Emaar Business Park 47 119 50 116 District Cooling Plant 347 347 371 371 At The Top 122 122 132 132 Leisure and Entertainment & Medic
Slide 17: Shareholders' Value
Shareholders’ Value 70 18 16 60 59 14 50 54 Shareholders' equity as per 52 12 AED per share 50 audited financial statements AED billions 40 9.61 8.58 10 8.79 Net asset value (including FV of 8.23 DP, Assets and market value of 30 33 8 listed securites) 31 31 29 Net asset value per share 6 20 4 10 2
Slide 18: UAE Operations
UAE OPERATIONS © Emaar 2014 18
Slide 19: Property Development: UAE
Property Development: UAE • Government Support: Historic land grants and 32% shareholding • Partnership with Quality Arabtec, Nasa Multiplex, Samsung, Al Futtaim Developers: Carillion • Established Reputation: Timely deliveries of high quality properties • Track Record:(1) 32,902 residential propert
Slide 20: Dubai RE – Key Strengths
Dubai RE – Key Strengths • All Dubai RE projects currently under construction have been substantially sold. Recoveries remain strong as evident from increased revenues. • Pre-sales model utilised, with cash inflows from customers’ instalments financing the bulk of constructions costs. • Conservative
Slide 21: Regional Business Highlights
Regional Business Highlights Projects Completed Units under Deliveries till Deliveries Deliveries Deliveries Deliveries Deliveries Deliveries development 2011 2012 2013 2014 2015 2016 2017 Downtown Development 9,880 2,485 7,853 1,278 749 - 533 579 1,373 Downtown Commercial spaces (sq ft) 2,860,476 -
Slide 22: International Operations
INTERNATIONAL OPERATIONS © Emaar 2014 22
Slide 23: Key International RE Markets–Unit Sales to Date
Key International RE Markets–Unit Sales to Date Emaar has achieved an overall sales level of 86% in its key International markets Units Unit Sale % sales Country Entity Released achieved achieved Egypt Emaar Misr for Development S.A.E. 4,942 4,560 92% KSA Emaar Middle East 715 615 86% Subsidiaries S
Slide 24: Key International Markets - Business Highlights
Key International Markets - Business Highlights Units To be Actual Units Currently Developed Deliveries Deliveries Deliveries Deliveries Country Entity Deliveries till Completed Under (Launches in 2013 2014 2015 2016 2012 Development 2012-2016) Subsidiaries Egypt Emaar Misr 992 1,676 4,642 603 257 1
Slide 25: International RE – Key Strengths
International RE – Key Strengths • Successful expansion of Emaar’s RE development model to several international locations. This has enabled Emaar to grow while limiting concentration risk on the Dubai RE market. • For the International RE developments, Emaar has acquired its land (solely and with J
Slide 26: Segments
SEGMENTS © Emaar 2014 26
Slide 27: Malls – Key Strengths
Malls – Key Strengths • Significant Gross Leasable Area (“GLA”) – All Dubai-based Mall assets are now open (5.8 m Sq Ft of GLA), with Total GLA Occupancy at 93% (Dec 2013). • The Dubai Mall - Opened in Nov-08 and is one of the largest malls in the world (3.7m sq ft GLA). GLA occupancy at 99% (Dec 20
Slide 28: Malls – Key Strengths (Cont'd)
Malls – Key Strengths (Cont’d) • Exclusive Tenants - Several exclusive tenants who do not have retail outlets anywhere else in the UAE / GCC including Bloomingdales and Galleries Lafayette • Retail Attractions - Below retail attractions provide impetus in terms of both footfall and revenues: - Reel
Slide 29: Dubai Mall Footfall Trend
Dubai Mall Footfall Trend © Emaar 2014 29
Slide 30: At The Top Footfall Trend
At The Top Footfall Trend © Emaar 2014 30
Slide 31: Emaar Hospitality Group
Emaar Hospitality Group Management Capacity Current Projects Category Operational Company Rooms Milan Armani Hotel Milan at Via Manzoni AHM(1) 5 Star 95 2011 Dubai Armani Hotel Dubai at Burj Khalifa AHM(1) 5 Star 160 2010 The Address Downtown Dubai TAH&R(2) 5 Star 196 2008 Al Manzil Hotel Emaar Hosp
Slide 32: Emaar Hospitality Group
Emaar Hospitality Group FY 2013 The Address The Palace The Address The Address Vida Downtown Downtown Dubai Mall Dubai Marina Al Manzil Downtown* Avail. room nights 71,540 88,330 89,060 73,000 71,905 31,044 Occupancy % 86% 82% 83% 84% 85% 65% ADR (AED) 1,783 1,476 1,561 998 885 890 RevPar (AED) 1,53
Slide 33: Emaar Hospitality – Key Strengths
Emaar Hospitality – Key Strengths Portfolio of Hospitality Brands: The Hospitality Division has successfully developed recognisable brands for the different categories of assets which have driven the creation of brand equity. It has also the license rights of the “Armani” brand for development of a
Slide 34: Emaar Hospitality – Key Strengths (Cont'd)
Emaar Hospitality – Key Strengths (Cont’d) High Margin Lease Income: The operations of Nuran Serviced Apartments had generated regular, high margin annuity income from low maintenance prime assets in Dubai. Though such streams of income have now ceased with the sale of Nuran Marina and Nuran Greens
Slide 35: Financial Highlights
FINANCIAL HIGHLIGHTS © Emaar 2014 35
Slide 36: Financial Performance – AED millions
Financial Performance – AED millions Q4-13 Q3-13 % Q4-13 Q4-12 % 2013 2012 % Revenue 2,762 2,347 18% 2,762 2,680 3% 10,328 8,240 25% Gross Profit 1,516 1,149 32% 1,516 1,149 32% 5,149 4,179 23% SGA (743) (589) 26% (743) (559) 33% (2,440) (1,919) 27% Other (expense)/income (39) 34 (215%) (39) (19) 10
Slide 37: Balance Sheet and Ratio Analysis
Balance Sheet and Ratio Analysis AED million 2009 2010 2011 2012 2013* Current Assets 5,915 8,014 5,823 7,017 10,446 Fixed Assets and Investment properties 15,368 16,649 16,299 16,040 15,933 Other Assets 42,862 37,841 37,932 38,094 36,438 Total Assets 64,145 62,504 60,054 61,151 62,817 Interest Bear
Slide 38: Thank You
THANK YOU © Emaar 2014 38
Slide 39: Appendix
APPENDIX © Emaar 2014 39
Slide 40: Land Bank in Key Markets (including associates)
Land Bank in Key Markets (including associates) Gross land Country area in millions sqm Kingdom of Saudi Arabia 165.3 India 43.0 Egypt 14.4 Pakistan 1.9 Turkey 1.2 Lebanon 0.4 Syria 0.3 KEY INTERNATIONAL MARKET 226.4 Gross Floor Area to be developed in UAE* - 12.44 millions sqm + 11 million sqm of t
Slide 41: Strong and Influential Strategic Partners
Strong and Influential Strategic Partners Country Partner Background SAGIA Government authority Saudi Arabia Al Oula Leading real estate company in Saudi Arabia India One of India's largest real estate developers MGF with influential shareholders Haji Rafiq Principal of a large construction co. (Gig
Slide 42: Experienced & Highly Qualified Management Team
Experienced & Highly Qualified Management Team Board of Directors Chairman: Mohamed Ali Alabbar Vice Chairman: Hussain Al Qemzi Managing Director: Ahmad Al Matrooshi Abdulla Lahej Ayman Hamdy Group CEO Company Secretary & Executive Director Legal Amit Jain Robert Booth Frederick Durie Other Group CF
Slide 43: Group Structure
Group Structure EMAAR PROPERTIES PJSC EMAAR DUBAI HOTELS & EMAAR EMAAR MALLS HOSPITALITY Property RESORTS Development INTERNATIONAL INVESTMENTS 100% 100% Projects - 100% 100% Emrill Services MGF-India KSA - EEC Turner Int’l ME Dubai Mall Giorgio Armani Nuran LLC 33.33% 48.86% 30.59% 50% 100% Hotels
Slide 44: Disclaimer
Disclaimer Emaar Properties PJSC, for themselves and for Emaar Group, give 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 prese
Slide 45: Thank You
Thank You www.emaar.com © Emaar 2014 45