Dar Al Arkan Real Estate Development Co. · TADAWUL:4300
Dar Al Arkan Real Estate Development — Q2 2017 Earnings Presentation
21 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2017
Slide 1: Investor Presentation Q2, 2017
Investor Presentation Q2, 2017 www.alarkan.com
Slide 2: Table of Contents
Table of Contents Content Page No. 1. Macro & Micro Economic Overview 3 1.1 Macroeconomic Overview 4 1.2 KSA Real Estate Sector Overview 5 1.3 Government initiatives update 6 2. DAAR’s Overview & Strategic Positioning 7 2.1 DAAR’s Overview 8 2.2 Financial Performance 9 2.3 Land Development 13 2.4 Re
Slide 3: 1. Macro & Micro Economic Overview
1. Macro & Micro Economic Overview 3
Slide 4: 1.1 Macroeconomic Overview
1.1 Macroeconomic Overview National Transformation Plan NTP (2020) aims to rebalance and diversify the economy through private sector inclusion. Stabilizing oil prices and NTP to spur the economic growth in 2017 and beyond Oil Price Recovery and Economic Declining Deficit Projected in Over 7% Rise i
Slide 5: 1.2 KSA Real Estate Sector Overview
1.2 KSA Real Estate Sector Overview Land Transactions Value QoQ Billion-SAR Residential Land Transactions Value QoQ Commercial Lands Transactions Value QoQ Billion-SAR 60 40% 30% 40 60% 50 28% 33% 36% 16% 20% 35 40% 40 3% -7% 10% 30 -17% -1% 21% 20% 0% 25 30 -20% -10% 20 -33% 0% 20 -20% 15 -20% -20%
Slide 6: 1.3 Government Initiatives Update
1.3 Government Initiatives Update MoH REDF Number of approved loans to be funded by Number of launched products in main cities banks 8,000 60,000 54,918 3,375 7,000 245 3,187 50,000 6,000 5,218 38,500 5,000 40,000 34,600 4,000 30,000 23,100 3,000 6,140 2,432 5,466 20,000 2,000 666 1,082 3,503 6,536
Slide 7: 2. DAAR's Overview & Strategic Positioning
2. DAAR’s Overview & Strategic Positioning 7
Slide 8: 2.1 DAAR's Overview
2.1 DAAR’s Overview Dar Al-Arkan is the largest listed real estate developer in the Kingdom of Saudi Arabia, with assets of over SAR 26.2 bn (US$ 6.98 bn), continuously diversifying across the real estate sector. Overview Current Status Land Development Our Aim is to acquire and develop urban land
Slide 9: 2.2 Financial Performance – Q2, 2017 Profitability
2.2 Financial Performance – Q2, 2017 Profitability Historical Quarter Revenue (SAR mn) 800 600 400 541 618 529 456 200 419 435 408 410 360 0 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 • Revenue in Q2 of SAR 456 m is the second highest recorded in the last 6 quarters even though market vol
Slide 10: 2.2 Financial Performance – Q2, 2017 Profitability
2.2 Financial Performance – Q2, 2017 Profitability Recurring Revenue (SAR mn) Gross Profit (SAR mn) & Margin (%) 50 45% 44% 45% 400 43% 43% 42% 50% 40% 38% 40 35% 40% 300 30 30% 200 20 39 20% 33 35 35 37 37 35 37 36 229 242 245 100 181 192 185 170 160 10% 10 136 0 0% 0 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16
Slide 11: 2.2 Financial Performance – Q2, 2017 Cash Flow
2.2 Financial Performance – Q2, 2017 Cash Flow DAAR continues to generate cash from operations, reduce net debt and restrict investments to land development Cash Flow Q2, 2017 (SAR mn) 4,000 158 269 1,875 104 3,000 2,000 456 2,674 1,000 875 - Starting Cash Revenue New Debt Debt Repayment OPEX and Wo
Slide 12: 2.2 Financial Performance – Q2, 2017 Funding
2.2 Financial Performance – Q2, 2017 Funding Gross Debt / Capitalization Debt Profile (SAR mn) 50% 40% Murabaha, 30% 28% 26% 26% 27% 30% 25% 25% 22% 22% 20% Sukuk, 72% 10% 0% 2014 2015 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 • In Q2 2017, Gross debt was 6,994 mn, which increased by 1,771 • Murabaha cont
Slide 13: 2.3 Land Development
2.3 Land Development Geographic Split of Dar Al-Arkan’s Land Bank Land Bank (as a % of total Asset) Others, 1% Makkah, 21% 53% Riyadh, 12% Jeddah, 66% Book Value of Total Land Bank: SAR 13.9 bn Land Revenue & Gross Margin (SAR Millions) Strategy 44.2% DAAR has a diversified land portfolio across t
Slide 14: 2.4 Residential & Commercial Development - Sales
2.4 Residential & Commercial Development - Sales Plan underway to open 3 sales offices in Riyadh and 1 in Jeddah to tackle current sales of units and prepare for the launch of the other master plans. Parisiana South Parisiana Living Naeem Eljiwar - Located in the center of Riyadh city and - Located
Slide 15: 2.4 Residential & Commercial Development - Projects
2.4 Residential & Commercial Development -Projects Shams Al Riyadh Juman Shams Al Arous Total Area (sqm) 8.2 m Total net area (sq m) 783K Total area (sqm) 3.2 m DAAR’s Holdings of the % Infrastructure completion 49% 18% Residential area to be sold (sqm) 578K Project’s SPV Shams Al Riyadh - is one of
Slide 16: 2.5 Property Management & Leasing
2.5 Property Management & Leasing Al-Qasr Community Al-Qasr Mall Built-up Area (sqm) 1.2mn Built-up Area (sqm) 230k Residence Capacity 13,000 GLA (sqm) 78k Apartments 2,419 # Leasable Units 430 Villas 66 # Floors 4 Commercial space (sqm) 75,974 Parking Capacity 1,800 cars Occupancy Ratio % 46% Leasi
Slide 17: 3. Appendix
3. Appendix oldy DI sl Sy DAR ALARKAN
Slide 18: 3.1 Appendix I – Income Statement
3.1 Appendix I – Income Statement SR in 000s FY 2015 FY 2016 H1 2016 H1, 2017 Q2, 2016 Q2, 2017 Revenue 2,211,349 1,870,229 842,164 816,823 407,557 456,494 Cost of revenue (1,228,117) (1,079,537) (465,873) (520,992) (222,862) (296,356) Gross profit 983,232 790,692 376,291 295,831 184,695 160,138 % 4
Slide 19: 3.2 Appendix II – Balance Sheet
3.2 Appendix II – Balance Sheet SR in 000s FY 2015 FY 2016 Q2 2016 Q2 2017 Cash 1,001,061 582,087 1,496,749 2,674,348 Accounts Receivables 1,948,687 1,839,470 1,375,614 1,530,178 Pre-paid Expenses 974,809 743,508 681,611 764,162 Project in Progress-ST - - - 43,560 Developed Land -ST 437,185 317,325
Slide 20: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES. THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS P
Slide 21: {Ht old II yl
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