Dar Al Arkan Real Estate Development Co. · TADAWUL:4300
Dar Al Arkan Real Estate Development — Q2 2018 Earnings Presentation
23 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2018
Slide 1: Investor Presentation Q2 2018
Investor Presentation Q2, 2018 www.daralarkan.com
Slide 2: Table of Contents
Table of Contents Content Page No. 1. Macro Economic Overview & KSA Real Estate Market 3 2. Overview of Dar Al Arkan 6 3. Financial Performance Overview 10 4. Overview of Assets Portfolio 14 5. Appendix 18 2
Slide 3: Macro Economic Overview & KSA Real Estate Market
Divider Page 1. Macro Economic Divider Page& KSA Overview Real Estate Market 3
Slide 4: Macroeconomic Overview
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 2018 and beyond Oil Price Recovery and Economic Continued Declining Deficit Over 5% Rise in Budge
Slide 5: KSA Real Estate Sector Overview
KSA Real Estate Sector Overview Value of Real Estate Transactions in KSA (SAR bn) KSA Real Estate Price Index (QoQ) 90 1.0% 0.5% 75 0.2% -0.1% 27.4 0.0% 60 29.8 -0.7% -0.7% 24.5 -1.0% -1.5% 45 19.6 18.0 12.9 17.4 -2.0% -2.3% 30 11.6 9.0 -2.7% 45.2 50.6 35.1 36.3 33.7 -3.0% -3.4% 15 30.3 26.3 27.1 23
Slide 6: Overview of Dar Al Arkan
2. Overview of DarDivider Page Al Arkan Divider Page
Slide 7: Company Overview
Company Overview Prudent real estate acquisition Strong financial position Diversification & international strategies paying off expansion In challenging market conditions, DAAR maintains a strong balance sheet with Key purpose of the strategy is to deliver management’s rigorous acquisition policies
Slide 8: Q2 2018 – Key Business Indicators
Q2 2018 – Key Business Indicators Investment in Revenues (LTM) +360% EBITDA (LTM) +140% Development Properties (LTM) SAR 8,497 mn SAR 1,573 mn SAR 1,981 mn (At Q2 2017 LTM: SAR 1,845 mn) (At Q2 2017 LTM: SAR 653 mn) (At Q2 2017 LTM: SAR 686 m) Gross Debt/ Cash and Bank +85% Book Value Per Share Capi
Slide 9: Dar Al Arkan Real Estate Assets
Dar Al Arkan Real Estate Assets Real Estate Properties Break up - SAR bn Projects Lands Break up (Sqm) Al Tilal Shams Al Investment Shams Ar Riyadh 0.2 mn Arous Properties 3.2 mn 0.9 mn 3.3 21% 59% Projects 20% Lands* Investments in 3.0 Lands* 9.1 Juman 8.2 mn *Projects Lands and Investments in Land
Slide 10: Financial Performance Overview
Divider Page 3. Financial DividerPerformance Page Overview 10
Slide 11: Financial Performance – Q2 2018 Profitability
Financial Performance – Q2 2018 Profitability Quarterly Revenues (SAR mn) Gross Profit (SAR mn) & Margin (%) 3,000 2,794 500 45% 465 475 50% 2,435 40% 42% 2,500 38% 400 35% 353 40% 2,000 1,785 1,483 300 24% 266 30% 245 1,500 19% 185 170 17% 200 160 15% 20% 1,000 136 618 408 410 360 456 500 100 10% -
Slide 12: Financial Performance – Q2 2018 Cash Flow
Financial Performance – Q2 2018 Cash Flow Cash Flow – Q2 2018 (SAR mn) 10,000 Income / Sources of Cash Uses of Cash 143 703 8,000 7 747 1,785 1,442 6,000 540 4,000 5,241 4,938 2,000 - Starting Cash Revenue Working Capital Opex Investment in Maintenance Debt Dividend Ending Cash Properties Capex Repa
Slide 13: Financial Performance – Q2 2018 Debt
Financial Performance – Q2 2018 Debt Gross Debt Vs Net Debt (SAR mn) Debt* / Capitalization 9,000 8,272 40% 6,995 6,938 6,830 7,500 6,480 30% 30.0% 30% 26% 26.5% 6,000 5,280 5,224 25% 2,674 2,959 5,241 22% 582 875 3,160 4,500 4,938 20% 21% 22% 21% 3,000 4,698 4,349 4,321 3,979 10% 14% 1,500 3,320 3,
Slide 14: Overview of Assets Portfolio
Divider Page Divider Pageof 4. Overview Assets Portfolio
Slide 15: Residential & Commercial Development Projects
Residential & Commercial Development Projects Riyadh Projects Jeddah Projects Eastern Province Projects I Love Florence, Dubai - Situated in the Al-Ammariyah - The site is situated 12 kms from - The project is located in the - The I Love Florence Tower district (King Khalid Road), part of CBD direct
Slide 16: 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 the accessed through King Fahad Road and accessed through King Fahad Road, Prophet’s Mosque fea
Slide 17: Leasing Properties Portfolio
Leasing Properties Portfolio Al-Qasr Mall, Riyadh Land Area 61,949 m² Built up Area 220,202 m² Gross Leasable Area 78,958 m² No. of floors 3 Leasable Floors plus two parking Latest Activity: 14 theater multiplex cinema agreement signed. Al-Qasr Apartments and villas, Riyadh GLA 419,000 m² Apartments
Slide 18: Appendix
Divider Page Divider 5. Page Appendix
Slide 19: Appendix I – Statement of Profit or Loss
Appendix I – Statement of Profit or Loss SAR in 000s FY 2016 FY 2017 H1 2017 H1 2018 Q2 - 2017 Q2 - 2018 Revenue 1,870,229 4,734,687 816,823 4,578,713 456,494 1,784,800 Cost of revenue (1,078,286) (3,620,675) (520,992) (3,837,928) (296,356) (1,518,626) Gross profit 791,943 1,114,012 295,831 740,785
Slide 20: Appendix II – Statement of Financial Position
Appendix II – Statement of Financial Position SAR in 000s FY 2016 FY 2017 Q2 – 2017 Q1 - 2018 Q2 - 2018 Investment properties, net 3,424,778 3,290,010 3,342,238 3,272,470 3,254,929 Long-term development properties 16,721,061 14,751,565 16,744,623 12,814,180 12,017,631 Property and equipment, net 66,
Slide 21: Appendix III – Statement of Cash Flows
Appendix III – Statement of Cash Flows SAR in 000s FY 2016 FY 2017 Q2 – 2017 Q2 - 2018 Profit before Zakat 258,777 567,811 24,077 450,995 Adjustments for: Depreciation 77,500 76,775 38,687 38,898 End of service indemnities 6,317 5,129 1,411 2,091 Provision for doubtful debts 1,000 0 0 0 Finance cost
Slide 22: 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 23: Thank you
Investor Relations Riyadh – Saudi Arabia Thank you Tel: +966 11 206 9888 Ext:1670 ir@alarkan.com
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