Dar Al Arkan Real Estate Development Co. · TADAWUL:4300
Dar Al Arkan Real Estate Development — Q2 2020 Earnings Presentation
25 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2020
Slide 1: Investor Presentation Q2 2020
Investor Presentation Q2 2020 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: The economic outlook is clouded by massive uncertainty!
Macroeconomic Overview The economic outlook is clouded by massive uncertainty! Brent Oil Prices GDP to Shrink in 2020 Deficit to Expand in 2020 0% The Global economy is expected to shrink in 2020 2017 2018 2019E 2020P* 2021P* as a result of the Covid-19 lockdowns, the length -2% 80 71.1 and magnit
Slide 5: However, the long-term fundamentals of the market remain 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: The June VAT rush compensated for the April and May Covid-19 lockdown
KSA Real Estate Sector Overview The June VAT rush compensated for the April and May Covid-19 lockdown 25.0 80 9.2 20.0 60 3.7 2.9 4.4 15.0 4.1 3.3 4.6 12.8 10.1 10.2 40 10 2.5 13.2 10.0 2.6 7.9 10.2 2.2 18.5 8.5 1.5 7 12.6 13.8 14.2 13 13.5 20 36.3 34.3 36.3 35.6 5.0 10.8 11.3 30.8 27.2 9 22.7 25.8
Slide 7: In Q2 2020 pricing remained robust particularly in residential plots and villas
KSA Real Estate Sector Overview In Q2 2020 pricing remained robust particularly in residential plots and villas KSA Real Estate Price Index (YoY) KSA Real Estate Price Index (QoQ) 2.0% 1.2% 0.9% 1.0% 1.0% 0.5% 0.7% 0.3% 0.4% -0.1% 0.0% 0.0% -0.4% -0.4% -0.7% -1.0% -2.7% -1.6% -2.0% -1.0% -3.0% -3.8%
Slide 8: Key Business Indicators Overview
2 | Key Business Indicators Overview
Slide 9: Q2 2020 – Key Business Indicators
Q2 2020 – Key Business Indicators Investment In Revenues (LTM) -22% EBITDA (LTM) +16% Development Properties (LTM) -5% SAR 2,798 mn SAR 841 mn SAR 4,069 mn (Q2 2019 : SAR 3,585 mn) (Q2 2019 : SAR 724 mn) (Q2 2019 : SAR 4,278 m) Gross Debt/ Cash And Bank Book Value Per Share Capitalization SAR 5,486
Slide 10: Dar Al Arkan Real Estate Assets
Dar Al Arkan Real Estate Assets DAAR’s Real Estate assets portfolio at cost is SAR 18.8 bn. DAAR has a strong pipeline of projects across the Kingdom totaling 12.4 mn sqm. Real Estate Properties 57% Break up - SAR bn 33% Investments in Juman* Lands, 12.1 8.2 mn Shams Ar Riyadh Project Lands & 3.
Slide 11: Financial Performance Overview
3 | Financial Overview Performance 11
Slide 12: Financial Performance – Q2 2020 Profitability
Financial Performance – Q2 2020 Profitability Quarterly Revenues (SAR mn) Gross Profit (SAR mn) & Margin (%) 2,000 1,785 350 40% 28% 25% 34% 266 34 280 22% 251 32% 1,500 27% 16 17% 18% 19% 202 213 988 210 165 24% 928 899 152 159 26 160 156 1,000 846 824 841 15% 23 1,751 25 32 36 140 16% 35 37 34 593
Slide 13: Financial Performance – Q2 2020 Cash Flow
Financial Performance – Q2 2020 Cash Flow Cash Flow – Q2 2020 (SAR mn) Income / Sources of Cash Uses of Cash / Expenses 6,600 141 119 207 23 1 5,500 633 464 4,400 5,486 3,300 2,200 4,880 1,100 - Starting Cash Revenue New Debt Working Capital Debt Repayment Opex Investment in Maintenance Ending Cash
Slide 14: Financial Performance – Q2 2020 Debt
Financial Performance – Q2 2020 Debt Gross Debt Vs Net Debt (SAR mn) Debt* / Capitalization 40% 10,000 9,163 9,774 34% 32% 7,832 29% 30% 26% 26% 8,000 6,830 6,747 6,663 6,430 23% 5,782 5,699 4,880 5,486 6,000 3,950 20% 4,937 5,160 4,903 4,710 3,472 21% 4,000 3,888 10% 15% 15% 15% 14% 2,000 3,882 4,2
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 ArRiyadh is close to the heart of the city and is located just 19 km from KKI Airport and 9 km from K
Slide 17: Residential & Commercial Development Projects.. Continued
Residential & Commercial Development Projects.. Continued Jeddah Projects Eastern Province Projects I Love Florence, Dubai - The site is situated 12 kms from CBD directly - The project is located in the Eastern Province - The I Love Florence Tower project is located off the 6 lane Palestine Road whi
Slide 18: Portfolio Summary – Completed Residential Properties
Portfolio Summary – Completed Residential Properties Parisiana South Parisiana Living Naeem Eljiwar - Located in Riyadh city and easily - Located in Riyadh city and easily - Located within the boundary of accessed through King Fahad accessed through King Fahad the Prophet’s Mosque featuring Road and
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: 93% occupancy achieved Cinema multiplex with 15 screens opened in 2019. Bow
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 2018 FY 2019 H1 2019 H1 2020 Q2 2019 Q2 2020 Revenue 6,412,265 3,491,856 1,751,526 1,057,364 927,848 464,343 Cost of revenue (5,355,114) (2,667,416) (1,390,522) (741,285) (726,128) (308,296) Gross profit 1,057,151 824,440 361,004 316,079 201,72
Slide 22: Appendix II – Statement of Financial Position
Appendix II – Statement of Financial Position SAR in 000s FY 2018 FY 2019 Q2 - 2019 Q2 - 2020 Investment properties, net 1,693,141 1,651,357 1,673,459 1,630,050 Long-term development properties 14,148,262 16,895,604 14,749,018 16,849,299 Property and equipment, net 83,085 79,765 80,714 76,280 Invest
Slide 23: Appendix III – Statement of Cash Flows
Appendix III – Statement of Cash Flows SAR in 000s FY 2018 FY 2019 Q2 – 2019 Q2 - 2020 Profit before Zakat 521,855 312,389 103,044 23,369 Adjustments for: Depreciation & Amortization 78,355 55,653 27,416 28,082 Provision for expected credit losses 0 2,000 0 0 End of service indemnities 4,122 4,313 1
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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