Al Dar Properties · ADX:ALDAR
Al Dar Properties — FY2022 Earnings Presentation
39 slides from Al Dar Properties's earnings presentation, Feb 9, 2023
Slide 1: FY 2022 Results Presentation
FY 2022 RESULTS PRESENTATION YEAR ENDED 31 DECEMBER 2022 9 FEBRUARY 2023
Slide 2: Agenda
AGENDA 1 FY 2022 Highlights 2 FY 2022 Results Summary 3 Aldar Development 4 Aldar Investment 5 Appendix 6 Aldar Value Proposition FY 2022 RESULTS PRESENTATION 2
Slide 3: FY 2022 Highlights
FY 2022 HIGHLIGHTS FY 2022 RESULTS PRESENTATION 3
Slide 4: Group Performance Highlights FY 2022
GROUP PERFORMANCE HIGHLIGHTS FY 2022 RECORD DEVELOPMENT SALES AND ONGOING EXECUTION OF ALDAR’S TRANSFORMATIONAL GROWTH STRATEGY CONTINUES TO DELIVER STRONG PERFORMANCE Q4 2022 (AED mn) 3,500 Revenue: EBITDA: Net Profit: 3,000 2,500 Continued strong AED 3.1bn AED 1.1bn AED 1.0bn +28% 2,000 performanc
Slide 5: Aldar Development
ALDAR DEVELOPMENT RECORD SALES FROM NEW PROJECT LAUNCHES IN THE UAE, SUPPORTED BY CONTINUED STRONG LOCAL AND INCREASED INTERNATIONAL DEMAND, IN ADDITION TO ROBUST CONTRIBUTION FROM SODIC AED bn Aldar Development Quarterly Sales Group Sales Revenue Backlog1 6.00 Q4 2022: FY 2022: December 2022: AED 5
Slide 6: Aldar Projects
ALDAR PROJECTS ALDAR AWARDED AED 35.6 BILLION OF NEW PROJECTS IN 2022 AED bn Project Management Backlog Progression 70 64 65 Project Management 60 57 9 29 3 4 34 CAPEX Backlog 17 22 2 December 2022: 50 AED 64.8bn 43 2 +56% 40 4 6 14 YTD 35 35 30 New Awards 31 29 20 FY 2022 AED 35.6bn 10 0 Work Q1 Ne
Slide 7: Aldar Investment
ALDAR INVESTMENT STRONG PERFORMANCE ON THE BACK OF ACQUISITIONS AND REBOUND IN HOSPITALITY AND RETAIL Investment Properties Hospitality & Leisure Education FY 2022 Revenue1: FY 2022 FY 2022 Students: AED 4.1bn Occupancy3: Occupancy: c. 33k +25% 92% 72% +25% YoY YoY FY 2022 ADJ. EBITDA1,2: FY 2022 Ad
Slide 8: Strong Group Balance Sheet Supporting Growth
STRONG GROUP BALANCE SHEET SUPPORTING GROWTH HIGHEST NON-GRE / CORPORATE CREDIT RATING OF BAA1 (ALDAR INVESTMENT PROPERTIES) WITH ONE OF THE LOWEST COSTS OF CAPITAL Debt and Facilities Breakdown AED 6.5bn Free Cash1 4.0 3.7 6.6 AED 4.0bn Sukuk Facilities drawn Facilities Undrawn Undrawn Facilities D
Slide 9: Emissions notes
Note: Scope 1 emissions are direct emissions from owned or controlled sources Scope 2 emissions are indirect emissions from the generation of purchased energy Scope 3 emissions are all indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both
Slide 10: Commitment to Shareholders
COMMITMENT TO SHAREHOLDERS BOARD RECOMMENDS FY 2022 DIVIDEND OF 16 FILS PER SHARE IN-LINE WITH EXISTING DIVIDEND POLICY AND ALLOWING FOR DEPLOYMENT TOWARDS GROWTH SHAREHOLDER RETURNS DIVIDEND POLICY 10% dividend CAGR growth between 2012-2022 Investment Development Pay-out Distributable Realized prof
Slide 11: 2023 Guidance
2023 GUIDANCE Aldar Equity Deployment AED 5bn Group Group Sales AED 15 to 17bn Aldar Group Revenue Backlog AED 21 to 23bn Development Project Management Gross Profit AED 500 to 550mn Aldar Adj. EBITDA AED 2.0 to 2.1bn1,2 Investment 1 Excludes Pivot 3 Adjusted for fair value movements (excluding amor
Slide 12: FY 2022 Results Summary
FY 2022 RESULTS SUMMARY FY 2022 RESULTS PRESENTATION 12
Slide 13: FY 2022 – Group Financial Highlights
FY 2022 – GROUP FINANCIAL HIGHLIGHTS AED mn FY 2022 FY 2021 Var Revenue 11,200 8,576 31% Gross Profit 4,734 3,600 31% Margin % 42% 42% flat EBITDA 3,684 2,801 32% Margin % 33% 33% flat Adj. EBITDA1 2,822 2,421 17% Margin % 25% 28% (300bps) Net profit 3,144 2,333 35% Margin % 28% 27% 90bps Note: 1. A
Slide 14: Q4 2022 – Group Financial Highlights
Q4 2022 – GROUP FINANCIAL HIGHLIGHTS AED mn Q4 2022 Q4 2021 Var Revenue 3,134 2,256 39% Gross Profit 1,287 1,166 10% Margin % 41% 52% (1,060bps) EBITDA 1,141 907 26% Margin % 36% 40% (380bps) Adj. EBITDA1 438 619 (29%) Margin % 14% 27% (1350bps) Net profit 1,013 795 28% Margin % 32% 35% (290bps) Not
Slide 15: Balance Sheet
BALANCE SHEET STRONG BALANCE SHEET POSITION SUPPORTED BY PRUDENT CAPITAL MANAGEMENT AND ROBUST GOVERNANCE BALANCE SHEET LEVERAGE Aldar Aldar AED mn 31 Dec 2022 31 Dec 2021 Investment Development ASSETS Outstanding ▪ Sukuk: 3.7bn Property, plant & equipment 5,607 3,558 Debt (AED bn)1 ▪ Bank: 0.1bn (a
Slide 16: Apollo Transaction
APOLLO TRANSACTION ALDAR COMPLETED LONG-TERM US$1.4B INVESTMENT TRANSACTION WITH APOLLO US$ 1.4bn of Long Term Investment 1 ▪ US$ 500mn investment into a joint venture between Land Joint Aldar Properties PJSC (AP) and Apollo for a portion Venture ■ Land Joint Venture of AP’s landbank Closed 30th Sep
Slide 17: Capital Deployment – FY 2022
CAPITAL DEPLOYMENT – FY 2022 SIGNIFICANT ACTIVITY IN YTD 2022 ACROSS EXISTING AND NEW MARKETS: C. AED 11.5 BN OF CAPITAL DEPLOYED OR COMMITTED – 7-8% STABILIZED NOI YIELD ON INVESTMENTS Aldar Investment (c. AED 7.4bn) Aldar Development (c. AED 4.1bn) Date Transaction Value (AED mn) Segment Date Tran
Slide 18: FY 2022 – Key Sustainability Updates
FY 2022 – KEY SUSTAINABILITY UPDATES ESG rating improvement Progress in our sustainability strategy Year-on-Year ▪ Economy ▪ Recirculated AED 7.6 billion to the local economy by awarding contracts to ICV-certified companies. ▪ Trained 400+ suppliers on sustainability ▪ Community ▪ Announced the firs
Slide 19: Aldar Development
ALDAR DEVELOPMENT FY 2022 RESULTS PRESENTATION 19
Slide 20: Aldar Development FY 2022 Financial Performance
ALDAR DEVELOPMENT FY 2022 FINANCIAL PERFORMANCE AED mn FY 2022 FY 2021 Var Group Sales 14,436 7,247 99% Property Development & Sales (UAE only) UAE 10,989 7,247 52% • Sales +52% YoY to AED 10.1bn Egypt 3,448 - - • Revenue +21% YoY, driven by record sales from new project launches and Revenue 6,965 5
Slide 21: Aldar Development Q4 2022 Financial Performance
ALDAR DEVELOPMENT Q4 2022 FINANCIAL PERFORMANCE AED mn Q4 2022 Q4 2021 Var Group Sales 5,175 1,110 366% Property Development & Sales (UAE only) UAE 3,790 1,110 241% • Sales +241% YoY to AED 3.8bn Egypt 1,385 - - • Revenue +11% YoY to AED 1.1bn Revenue 1,784 1,243 44% • Healthy revenue backlog of AED
Slide 22: Land Bank Overview
LAND BANK OVERVIEW ALDAR HAS ACCESS TO A LARGE AND HIGHLY VALUE ACCRETIVE LAND BANK OF C. 69M1 SQM WHICH IS MONETIZED THROUGH DESTINATION MASTER PLANNING / DEVELOPMENT AND ONGOING INVESTMENT KEY CURRENT DESTINATIONS INCLUDE YAS AND SAADIYAT AND FUTURE DESTINATIONS INCLUDE MINA ZAYED AND AL GHADEER D
Slide 23: UAE Development Projects Pipeline
UAE DEVELOPMENT PROJECTS PIPELINE Total as at 31 Dec 22 Launch Net Sales value Project Location date Sold units (AED mn) Units launched % sold % completion Project Status Ansam Yas Island 2014 544 950 547 99.5% 100% Handed over Hadeel Al Raha Beach 2014 233 482 233 100% 100% Handed over Nareel Abu D
Slide 24: Aldar Investment
ALDAR INVESTMENT FY 2022 RESULTS PRESENTATION 24
Slide 25: Aldar Investment Capital Deployment – FY 2022
ALDAR INVESTMENT CAPITAL DEPLOYMENT – FY 2022 C. AED 7.4 BN OF CAPITAL DEPLOYED ACROSS EXISTING AND NEW SEGMENTS – NOI YIELD GUIDANCE OF 7-8% FY 2021 2022 Capital Deployment FY 2022 AUM2 Logistics Retail Commercial Logistics Commercial 3% 46% 19% 7% 85% Commercial 35% Retail Retail Investment 37% AE
Slide 26: Aldar Investment FY 2022 Financial Performance
ALDAR INVESTMENT FY 2022 FINANCIAL PERFORMANCE AED mn FY 2022 FY 2021 Var Recurring revenue1 4,120 3,284 25% Investment Properties Investment Properties3 1,935 1,690 15% • Retail: FY 2022 Adj. EBITDA2 +17% YoY to AED 433mn, driven by Yas Mall Hospitality & Leisure 828 433 91% repositioning, and acqu
Slide 27: Aldar Investment Q4 2022 Financial Performance
ALDAR INVESTMENT Q4 2022 FINANCIAL PERFORMANCE AED mn Q4 2022 Q4 2021 Var Recurring revenue1 1,320 944 40% Investment Properties Investment Properties3 536 447 20% • Retail: Q4 Adj. EBITDA2 +36% YoY to AED 90mn, driven by Yas Mall Hospitality & Leisure 368 184 100% repositioning resulting in higher
Slide 28: Investment Properties Overview
INVESTMENT PROPERTIES OVERVIEW1 COMMERCIAL RESIDENTIAL RETAIL LOGISTICS No. 15 12 36 2 Leasable area 503,071 sqm 828,662 sqm 536,439 sqm 165,506 sqm Occupancy 88% 97% 91% 91% WAULTS (yrs) 4.0 2.8 4.2 4.8 FY 22 Revenue AED 548mn (FY 21: AED 462m) AED 593m (FY 21: AED 567m) AED 720m (FY 21: AED 636m)
Slide 29: Hospitality & Leisure
HOSPITALITY & LEISURE BROAD RESILIENT PORTFOLIO MAKE UP AED mn FY 2022 FY 2021 Revenue AED 828mn AED 433mn HOTELS • The hotel portfolio consists of assets from 3 to 5 star, in addition to hotel apartments Adj. EBITDA AED 208mn AED 77mn • Key assets: - W Yas Island - Radisson Blu Adj. EBITDA Margin 2
Slide 30: Aldar Education – 2nd Largest Private School Operator in UAE
ALDAR EDUCATION – 2ND LARGEST PRIVATE SCHOOL OPERATOR IN UAE TODAY 60 50 50.00 Operated Schools Update Managed Schools Update 40 45.00 40.00 33 o +14% growth in operated schools enrolment o +31% growth in managed schools enrolment 28 35.00 30 26 year-on-year year-on-year 30.00 25 20 20 22 o +6% like
Slide 31: Principal Investments
PRINCIPAL INVESTMENTS1 ▪ Aldar’s real estate services arm is comprised ▪ Principal Investments FY 2022 EBITDA increased 72% YoY to AED 98mn of Khidmah, a facilities management business and Provis a property management ▪ Largely due to Provis’ new revenue streams such as the integrated facilities bus
Slide 32: Appendix
APPENDIX FY 2022 RESULTS PRESENTATION 32
Slide 33: Segmental Breakdown – FY 2022 vs. FY 2021
SEGMENTAL BREAKDOWN – FY 2022 vs. FY 20211 REVENUE (AED mn)2 4,413 3,644 1,935 1,690 1,136 1,389 1,414 828 592 536 765 625 433 n.a Investment Properties Hospitality & Leisure Education Principal Investments1 Property Development & Project Management Egypt Sales Services FY 2022 FY 2021 EBITDA (AED m
Slide 34: UAE Policy Reforms and Energy Strategy
UAE POLICY REFORMS AND ENERGY STRATEGY FEDERAL ANNOUNCEMENTS ENERGY INDUSTRY ▪ Launch of a new ten-year plan, We The UAE 2031, which sets out a development strategy with focus on education and the economy. ▪ ADNOC joined the Hydrogen Council, an international ▪ Changes to federal laws related to are
Slide 35: Aldar Value Proposition
ALDAR VALUE PROPOSITION FY 2022 RESULTS PRESENTATION 35
Slide 36: Leading Regional Real Estate Play Delivering Growth
LEADING REGIONAL REAL ESTATE PLAY DELIVERING GROWTH BENEFITING FROM ACCESS TO SIGNIFICANT GROWTH CAPITAL AND SUPPORTED BY STRONG MACRO TAILWINDS ALDAR HIGHLIGHTS ✓ Abu Dhabi master developer of iconic destinations with proven delivery and sales track-record and leading share in off-plan residential
Slide 37: Key Value Drivers
KEY VALUE DRIVERS LEADING ABU DHABI PROPERTY COMPANY WITH DIVERSIFIED BUSINESS MODEL COMPRISED OF TWO CORE BUSINESSES; ALDAR INVESTMENT AND ALDAR DEVELOPMENT Mkt Cap: AED 34.8bn / US$ 9.5bn1 Revenue: AED 11.2bn / US$ 3.0bn3 Credit rating: Baa2 (Parent) / Baa1 (AIP)2 EBITDA: AED 3.7bn / US$ 1.0bn3 (1
Slide 38: Contact Us
CONTACT US For any further enquiries please contact: Pamela Chahine Senior Vice President Investor Relations Tel: +971 (0)2 810 6585 Email: pchahine@aldar.com Omar Nashaat Vice President Investor Relations Tel: +971 (0)2 810 6237 Email: onashaat@aldar.com FY 2022 RESULTS PRESENTATION 38
Slide 39: Thank You
THANK YOU FY 2022 RESULTS PRESENTATION 39