Emaar Development Pjsc · DFM:EMAARDEV
Emaar Development Pjsc — 9M 2020 Earnings Presentation
33 slides from Emaar Development Pjsc's earnings presentation, November 2020
Slide 1: Emaar Development PJSC Investor Presentation
Emaar Development PJSC Investor Presentation Nov 2020 0
Slide 2: Disclaimer
Disclaimer Emaar Development PJSC gives 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 presentation are made without responsibi
Slide 3: Discussion Summary
Discussion Summary Investment Rationale Business Overview Business Strategy & Outlook 9M & Q3 2020 Results Update Annexure 2 | EMAAR DEVELOPMENT
Slide 4: Investment Rationale
Investment Rationale 3 | EMAAR DEVELOPMENT
Slide 5: Emaar Development at a Glance
Emaar Development at a Glance Creator of World-Renowned Architectures Strong Financial Performance in 2019 • Burj Khalifa – Tallest Building in the World • Revenues AED 12.7 Bn (25% CAGR2) • Dubai Marina – Largest Man-Made Marina1 (3.5 • EBITDA AED 3.7 Bn (18% CAGR1) sq.km.) development of its kind
Slide 6: Developer of Iconic Master Plans Transforming Dubai
Developer of Iconic Master Plans Transforming Dubai Downtown Dubai Dubai Marina 2005 Today 2003 Today ✓ 500-acre Flagship Mega-Development ✓ Largest Man-Made Marina1 (3.5 sq.km.) development of ✓ One of the Most Visited Destinations In The World its kind ✓ Includes World’s Tallest Building & World’s
Slide 7: Strong Performance Track Record
Strong Performance Track Record Emaar Development Delivered Strong Growth in a Challenging Environment over 2015 to 2019 In AED Mn Revenues Gross Profit CAGR 25% CAGR 21% 6,700 15,433 12,746 5,061 3,761 8,863 2,861 6,899 2,395 5,253 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EBITDA Net Profit
Slide 8: Consistently Ahead of the Competition
Consistently Ahead of the Competition Emaar Development Maintained Robust Sales Trend over 2015 to 2019 Robust Sales – Ahead of the Competition2 (More than 4x in 2019) In AED Bn 18.0 ✓ Displayed strong sales traction, despite 14.4 14.2 14.8 difficult market conditions 10.2 9.1 7.0 7.5 4.3 3.1 ✓ Sign
Slide 9: Business Overview
Business Overview 8 | EMAAR DEVELOPMENT
Slide 10: Largest Master Developer and Preferred Development Partner
Largest Master Developer and Preferred Development Partner Leadership Position Preferred Development Partner • Largest masterplan developer in UAE, having • Recognition for superior quality and consistent transformed Dubai’s landscape delivery • Unique proposition of premier integrated lifestyle • A
Slide 11: De-risked Business Model to Deliver Self-Sustaining Growth
De-risked Business Model to Deliver Self-Sustaining Growth Minimal Cash Self-Funded Construction Minimal Default Rate Requirement for Land • Sufficient land bank, limited • Construction cost is funded • Minimal default rates levels incremental investment in through pre-sales of ~2.0-2.5% of sales va
Slide 12: Diversified Customer Base to Maintain Healthy Sales Traction
Diversified Customer Base to Maintain Healthy Sales Traction 9M 2020 Customer Mix – 9M 2020 Customer Mix – Residents vs. Non-residents Based on Nationality Others China India Residents Non Residents United Arab North America Emirates Saudi Arabia MENA2 United Kingdom Russian Federation Europe1 Pakis
Slide 13: Sufficient Land Bank to Deliver Long-term Growth
Sufficient Land Bank to Deliver Long-term Growth Land Bank Evolution Though Investments & Strategic Partners Year Area 2012 Arabian Ranches II (million sq ft) GFA BTS 2011- 9M 2020 Multiple CAGR 2013 Dubai Hills Estate ~22x ~45% 2014 Dubai Creek Harbour 369 369 2015 Emaar South 2016 Downtown Views,
Slide 14: Business Strategy & Outlook
Business Strategy & Outlook 13 | EMAAR DEVELOPMENT
Slide 15: Development Strategy: Consolidate and Prepare for the Next Growth Phase
Development Strategy: Consolidate and Prepare for the Next Growth Phase Leverage the Strength Marketing to Well-planned Execution Product Innovations of Master Developments International Customers & Delivery • Leverage on the existing • Unique product offering for • Targeting international • Timely
Slide 16: Q3 & 9M 2020 Results Update
Q3 & 9M 2020 Results Update 15 | EMAAR DEVELOPMENT
Slide 17: 9M 2020 Key Highlights
9M 2020 Key Highlights Property Sales Revenues EBITDA AED 4.3 Bn AED 7.1 Bn AED 1.7 Bn Net Profit Default Rate ~2.0-2.5% of c. ~2,500 Units Delivered ~AED 1.4Bn Sales Value ~ 28,600 units under c. AED 27.2 Bn c. AED 4.4 Bn construction to be delivered Revenue Backlog2 Escrow Balance1 in next 3-4 yea
Slide 18: 9M 2020 Key Highlights
9M 2020 Key Highlights AED Million 9M 2020 9M 2019 % Change Property Sales 4,343 9,350 (54%) Revenue 7,133 9,625 (26%) Gross Profit 2,524 3,839 (34%) Margin (%) 35.4% 39.9% - EBITDA 1,726 2,834 (39%) Margin (%) 24.2% 29.4% - Net Profit 1,359 2,070 (34%) Margin (%) 19.0% 21.5% - 1 Total Equity 13,230
Slide 19: Balance Sheet & Cash Flow Overview
Balance Sheet & Cash Flow Overview Balance Sheet Overview Cash Flow Overview In AED Mn Total: AED 32,537 Mn Loans & 4% Non-Controlling Investments 7% Interests in Associates and JVs 43% Shareholder's 34% Equity Trade & Other Receivables Interest Bearing Loans & Borrowings 12% Advances from 8% Custom
Slide 20: Project Development Status / Overview
Project Development Status / Overview 100% Owned Developments 100% Consolidated JV JV/JDAs with 50% Share Others Ras Al Khaimah (100% Downtown Arabian Dubai Emaar Dubai Dubai Emaar owned land bank); 4 The Valley Mina Rashid 3 3 Total Dubai Ranches Marina Beachfront Hills Creek South Zabeel Square (J
Slide 21: Annexure
Annexure 20 | EMAAR DEVELOPMENT
Slide 22: Projects Overview
Projects Overview Wholly-owned projects Downtown Dubai Arabian Ranches Dubai Marina Emirates Living Emaar Beachfront The Valley Garden All under-construction Expansion of the Two waterfront Green-focused An exclusive residential A gated community projects (including Blvd current Arabian residential/
Slide 23: UAE Development – Projects Overview
UAE Development – Projects Overview 100% Consolidated JV JVs/JDAs with 50% share Dubai Hills Estate Mina Rashid Dubai Creek Harbour Emaar South Zabeel Square Joint Venture between Joint Venture between Joint Development Joint Venture between Joint venture between Emaar and Meraas Holding Emaar and M
Slide 24: UAE Development – Projects Under Development
UAE Development – Projects Under Development % Remaining Collections of Sold Value Project Value Area % Collected of % Completion % Gross Margin Till Post Project (100% Owned) Units Launch Period % Unit Sold % Value Sold Total (AED Mn)(1) (SQF) sold value Sep-20 Sep-20(2) Handover Handover Downtown
Slide 25: UAE Development – Projects Under Development
UAE Development – Projects Under Development % Remaining Collections of Sold Value Project Value Area % Collected of % Completion % Gross Margin Till Post Project (Joint Ventures) Units Launch Period % Unit Sold % Value Sold Total (AED Mn)(1) (SQF) sold value Sep-20 Sep-20(2) Handover Handover Dubai
Slide 26: UAE Development – Projects Under Development
UAE Development – Projects Under Development % Remaining Collections of Sold Value Project Value Area % Collected of % Completion % Gross Margin Till Post Project (Joint Ventures) Units Launch Period % Unit Sold % Value Sold Total (AED Mn)(1) (SQF) sold value Sep-20 Sep-20(2) Handover Handover Dubai
Slide 27: UAE Development – Completed Projects
UAE Development – Completed Projects1 Project Value Area % Collected of sold % Remaining Collections of Project (100% Owned) Units % Unit Sold % Value Sold (AED Mn)(2) (SQF) value Sold Value Downtown Dubai 4,592 18,631 6,837,110 98% 97% 95% 5% Address Sky View 552 2,891 988,344 99% 99% 93% 7% Blvd P
Slide 28: UAE Development – Completed Projects
UAE Development – Completed Projects1 Project Value Area % Collected of sold % Remaining Collections of Project (Joint Ventures) Units % Unit Sold % Value Sold (AED Mn)(2) (SQF) value Sold Value Dubai Hills Estates 4,156 17,024 16,873,188 91% 87% 83% 17% Sidra 2 423 1,741 1,130,388 99% 99% 75% 25% S
Slide 29: UAE Development – Location of Development Projects
UAE Development – Location of Development Projects Emaar Beachfront Mina Rashid The Valley Garden Arabian Ranches III 28 | EMAAR DEVELOPMENT
Slide 30: Expected Delivery Schedule
Expected Delivery Schedule Under Development Delivery Schedule Under 2020 2020 Completed Development Completed Remaining 2021 2022 2023 Deliveries Deliveries - A - Emaar Development (fully consolidated) Downtown 13,565 7,984 450 548 2,502 3,020 1,914 Emaar Beachfront - 2,239 - - 908 614 717 Dubai Ma
Slide 31: JV / JDA Accounting Treatment
JV / JDA Accounting Treatment Accounting P&L Balance Sheet Impact on Return on Capital Dubai Hills – • 100% consolidation • 100% consolidation • Neutral impact on ROCE Consolidation • 50% Minority Interest • 50% Minority Interest Mina Rashid • 100% consolidation – • 30% Management Fee • 100% consoli
Slide 32: Emaar Group – Divisions Overview
Emaar Group – Divisions Overview UAE Entertainment & International Operations Emaar Malls Emaar Hospitality Development Leasing • Leading master plan • Active in 10 targeted high • Emaar Malls PJSC is • Hotel owner and operator • Provider of premium developer in Dubai growth countries listed on DFM
Slide 33: Thank You
Thank You EMAAR DEVELOPMENT Name – Abhay Singhvi Email id - ASinghvi@emaar.ae 32 | EMAAR DEVELOPMENT
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