Emaar Properties (p.j.s.c) · DFM:EMAAR
Emaar Properties (p.j.s.c) — Emaar Properties — Investor Presentation (April 2020)
60 slides from Emaar Properties (p.j.s.c)'s investor presentation, April 2020
Slide 1: Prepared for the Future
Prepared for the Future Built on Strength, Prudence & Resilience. Investor Presentation April 2020 0 | EMAAR PROPERTIES
Slide 2: Disclaimer
Disclaimer Emaar Properties PJSC, for themselves and for Emaar Group, give 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 prese
Slide 3: Discussion Summary
Discussion Summary Investing In Emaar Expanding Footprint in UAE & International Markets Business Strategy & Outlook FY 2019 Results Update Annexure 2 | EMAAR PROPERTIES
Slide 4: Investing In Emaar
Investing In Emaar 3 | EMAAR PROPERTIES
Slide 5: Emaar Purpose & Business Model
Emaar Purpose & Business Model An Enduring Enterprise Our Business Model: driven by: We operate a business model that puts risk mitigation at the centre of our core strategies. We create value by providing high quality and highly desirable • Vision to redefine engineering environments, which help ou
Slide 6: A Globally Admired Real Estate Company
A Globally Admired Real Estate Company Creator of World-Renowned Architectures Landmark Hospitality Assets Burj Khalifa – Tallest Building in the World 23 Hotels with c. 5,237 keys Dubai Mall – Most Visited Mall in the World (Owner) Established brands: Address Hotels & Resorts, Vida Hotels & Resorts
Slide 7: Diversified Real Estate Play In UAE & International Markets
Diversified Real Estate Play In UAE & International Markets Resilient Business Model With Strong Growth Potential Total Revenues In AED Mn 16% 25,694 ✓ Consistent growth delivered in difficult market 24,586 environment post 2014 oil price crash 18,752 15,540 15,411 12,937 ✓ Good business mix with st
Slide 8: Strong Balance Sheet
Strong Balance Sheet Solid Credit Profile with very Comfortable Net Debt-to-Equity and Significant Debt Coverage AED Million Dec 2019 Comfortable Debt Maturity Profile – Dec 2019 Debt 23,102 Cash 6,796 Net Debt 16,306 8,882 Equity 63,449 Total Assets 116,870 4,495 4,746 3,578 3,132 1 1,698 Key Ratio
Slide 9: Emaar In “The Value Zone”
Emaar In “The Value Zone” Emaar Properties is Trading at Significant Discount to its NAV despite Superior Financial Metrics 57% -46% Market Cap (AED Bn) -56% 2019 Implied Cap Rate 1,3 52.0 Premium / (Discount) to BV Emaar Malls 11.4% -77% 23.8 US Peers 4.8% Premium / (Discount) to NAV* EU Peers 6.0%
Slide 10: Sum of The Parts valuation analysis
Sum of The Parts valuation analysis Emaar’s market cap 1 Emaar’s share of Listed companies > AED 29 Bn AED 38 Bn Y Axis 38 Current share 13 prices implies deep holding company 29 discount and negative 20 valuation given to Emaar’s unlisted 2 -9 businesses 2 0 Emaar Emaar Dev. Emaar Malls Emaar MISR
Slide 11: Expanding Footprint in UAE & International Markets
Expanding Footprint in UAE & International Markets 10 | EMAAR PROPERTIES
Slide 12: 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’
Slide 13: Having Stood Multiple Tests of Time
…Having Stood Multiple Tests of Time Emaar’s Unique Proposition of Integrated Masterplans and Superior Quality helped to Deliver Consistent Performance in UAE Emaar’s Sales – Ahead of the Competition (~5x in 2019) In AED Bn 18.0 ✓ Displayed strong sales traction, despite 14.4 14.4 14.9 difficult mar
Slide 14: Renowned For Its Iconic Retail Assets
Renowned For Its Iconic Retail Assets… The Dubai Mall – Most Visited Mall in the World ✓ World renowned shopping & entertainment destination ✓ 4.2 Mn sq. ft. GLA (incl. Fashion Avenue Expansion) ✓ 96% Occupancy ✓ 1,200+ stores with leading retailers and marquee global brands ✓ 84 Mn Footfalls in 201
Slide 15: Delivering Robust Growth
…Delivering Robust Growth Emaar Malls Delivered Consistent Growth over 2012 to 2019 Robust Growth in Footfalls… 6,095 5,969 5,158 5,295 5,371 5,423 5,419 5,368 ✓ Preferred gateway to Dubai’s consumerism for aspiring retailers and brands 6% 114 124 125 130 136 136 104 ✓ Urban lifestyle destination an
Slide 16: And Consistently Outperforming the Market
…And Consistently Outperforming the Market Emaar Malls Outperformed Dubai Retail Market over 2018-2019 Super Regional Malls Regional Malls Specialty Retail & Community Centres Rent per sq. ft.: 2-Yr CAGR Rent per sq. ft.: 2-Yr CAGR Rent per sq. ft.: 2-Yr CAGR 1% -4% -9% -18% -15% 2019 -14% 2019 2019
Slide 17: Complemented By Immersive Entertainment Avenues
…Complemented By Immersive Entertainment Avenues Entertainment Business: Major Tourist Attractions driving Footfalls at The Dubai Mall Robust Growth & Superior Margins In AED Mn ✓ At The Top, world’s highest observation desk 66.6% 67.7% 68.6% 62.6% 58.7% 58.9% 59.4% ✓ Dubai Aquarium & Underwater Zoo
Slide 18: Hospitality Assets Deliver Steady Performance
Hospitality Assets Deliver Steady Performance Steady Performance in a Difficult Market Environment Emaar Hotels: Hospitality Business: Resilient & Profitable In AED Mn ✓ Able to maintain healthy EBITDA margin in a weak market with operating costs under control 37.9% ✓ Hospitality sector will be the
Slide 19: Replicating Our Success In International Markets
Replicating Our Success In International Markets Leverage Emaar’s Strength And Unlock the Land Bank Potential in Key Markets Development Retail Entertainment Hospitality ✓ c. 38,217 units sold & c. 20,938 units ✓ Own & operate iconic ✓ Launch entertainment ✓ Adopt an asset-light delivered since 2002
Slide 20: Business Strategy & Outlook
Business Strategy & Outlook 19 | EMAAR PROPERTIES
Slide 21: Top Priorities
Top 3 Priorities Maintain Leadership Position in Our Markets Focus on Execution & Cash Flow Generation Focus on Maximising Shareholder Returns 20 | EMAAR PROPERTIES
Slide 22: UAE Development Strategy: Consolidate and Prepare for Next Growth Phase
UAE 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 • Tim
Slide 23: UAE Retail Strategy: Multi-format Omni-channel Growth Strategy
UAE Retail Strategy: Multi-format Omni-channel Growth Strategy Leverage Superior Asset Mix Robust Retail Space Growth • Offer diverse retailing experience - super-regional malls, • Well-planned extensions at The Dubai Mall to enhance regional malls, specialty retail, community retail centers custome
Slide 24: UAE Retail Strategy: Adopt Low-Risk Model For Future Expansions
UAE Retail Strategy: Adopt Low-Risk Model For Future Expansions Projects under Emaar Malls Operate As Pure Rental Income Play GLA Expected Project Name • Pure Rental Income Play (‘000 sq.ft.) Opening • Focus on rental income growth and cash flow generation Meadows Village c. 95 H2 2020 • Minimal Dev
Slide 25: Q4 & FY 2019 Results Update
Q4 & FY 2019 Results Update 24 | EMAAR PROPERTIES
Slide 26: FY 2019 Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development FY 2019 Key Highlights Property Sales Revenues EBITDA in UAE at AED 14.9 Bn AED 24.6 Bn AED 9.7 Bn +4% YoY Net Profit 30% Recurring Revenues Emaar Malls Achieved AED 6.2 Bn 46% Recurring EBITDA ~136 Mn Footf
Slide 27: Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Key Highlights AED Million Q4 2019 Q4 20181 % Change FY 2019 FY 20181 % Change Group Property Sales 3,463 5,021 (31%) 19,234 17,749 8% Revenue 6,942 8,305 (16%) 24,586 25,694 (4%) Gross Profit 3,127 4,071 (2
Slide 28: Segment Analysis
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Segment Analysis Segment Wise Revenues (AED Mn) Revenue Share % EBITDA Share % - 4% 6% 2% 5% 9% 25,694 24,586 5% 1,304 1,559 1,408 18% 1,298 4,339 AED AED + 8% 4,545 24,586 Mn 9,653 Mn 3,081 - 17% 53% 45% 4,
Slide 29: Historical Trend
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Historical Trend In AED Mn Revenues Gross Profit CAGR 16% CAGR 12% 12,883 25,694 24,586 11,562 18,572 9,374 8,100 15,540 7,263 13,661 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EBITDA Net Profit After
Slide 30: Balance Sheet & Cash Flow Overview
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Balance Sheet & Cash Flow Overview Balance Sheet Overview Cash Flow Overview In AED Mn Total: AED 116,870 Mn 618 Bank Balances & 6% Cash Trade & Other 16% Payables 8,963 Trade & Other 22% Advances from Recei
Slide 31: Emaar Development – Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Emaar Development – Key Highlights 1 AED Million Q4 2019 Q4 2018 % Change FY 2019 FY 2018 % Change Property Sales 2,317 4,364 (47%) 14,842 14,394 3% Revenue 3,121 5,393 (42%) 12,746 15,411 (17%) Gross Profit
Slide 32: UAE Development – Current Project Status
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development UAE Development – Current Project Status 100% Owned Developments 100% Consolidated JV JV/JDAs with 50% Share Others Ras Al Khaimah (100% owned land Downtown Arabian Dubai Emirates Emaar Dubai Mina Dubai Emaa
Slide 33: Emaar Development – Historical Trend
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Emaar Development – Historical Trend In AED Mn Revenues Gross Profit CAGR 25% CAGR 21% 6,833 15,411 12,746 5,061 8,863 3,761 6,899 2,861 5,253 2,395 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EBITDA N
Slide 34: International Development – Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development International Development – Key Highlights International Sales – Units Released c. AED 12.1 Bn Revenue Backlog 1 c. AED 4.3 Bn Sales Booked To be recognized over in FY 2019 next 3-4 years c. 4,900 Units c. 1
Slide 35: International Development – Key Highlights (Emaar Misr)
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development International Development – Key Highlights Emaar Misr – Development 1 Key Highlights AED Mn EGP Mn • Delivered 1,087 units in 2019 FY 2019 FY 2018 % Change FY 2019 FY 2018 % Change • Property sales grew by 2
Slide 36: Emaar Malls – Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Emaar Malls – Key Highlights1 AED Million Q4 2019 Q4 2018 % Change FY 2019 FY 2018 % Change Revenue 1,228 1,174 5% 4,545 4,339 5% Gross Profit 857 901 (5%) 3,428 3,401 1% Margin (%) 69.8% 76.7% - 75.4% 78.4%
Slide 37: Emaar Malls (Excl. Namshi) – Historical Trend
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Emaar Malls (Excl. Namshi) – Historical Trend Rental Income EBITDA In AED Mn CAGR 5% CAGR 7% 3,599 3,647 3,227 3,323 2,934 2,952 2,992 2,676 2,447 2,250 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Net
Slide 38: Namshi – Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Namshi – Key Highlights Namshi Revenues 1 (AED Mn) CAGR 24% Net Merchandise Gross Profit Value 1,028 + 12% + 20% 849 730 Active Customers Online Traffic 555 + 21.5% + 2% 440 Social Media Number of Orders Eng
Slide 39: Emaar Hospitality – Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Emaar Hospitality – Key Highlights AED Mn FY 2019 FY 2018 3 % Change Key Highlights Occupancy Rate (%)* 76% 75% • Achieved higher than market average ADR and RevPar (AED)* 501 585 (14%) Occupancy Room Revenu
Slide 40: Emaar Hospitality – Asset Performance
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Emaar Hospitality – Asset Performance Address Boulevard 1 The Palace Downtown Address Dubai Mall1 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 Available Room Nights 76,137 71,540 88,330 88,330 89,060 89,0
Slide 41: Annexure
Annexure 40 | EMAAR PROPERTIES
Slide 42: 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 43: UAE Development – Projects Overview
UAE Development – 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 Sky current Ar
Slide 44: 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 Emaar Joint Venture between Emaar Joint Development Agreement Joint Venture between Emaar Joint venture between Emaar an
Slide 45: UAE Development – Projects Under Development
UAE Development – Projects Under Development Amount Area Launch % Unit % Value % Collected % Completion % Gross Margin Project (100% Owned) Units (AED)(1) (SQF) Period Sold Sold of sold units Dec-19 Dec-19(2) Downtown Dubai 7,861 26,199,562,018 9,647,488 93% 86% 40% 43% Blvd Heights 550 1,792,597,31
Slide 46: UAE Development – Projects Under Development
UAE Development – Projects Under Development Amount Area Launch % Unit % Value % Collected % Completion % Gross Margin Project (100% Owned) Units (AED)(1) (SQF) Period Sold Sold of sold units Dec-19 Dec-19(2) Dubai Hills Estates(3) 5,879 12,299,566,265 9,823,038 78% 80% 39% 47% Park Point 333 483,58
Slide 47: UAE Development – Projects Under Development
UAE Development – Projects Under Development Amount Area Launch % Unit % Value % Collected % Completion % Gross Margin Project (100% Owned) Units (1) (AED) (SQF) Period Sold Sold of sold units Dec-19 Dec-19(2) Dubai Creek Harbour 7,802 14,811,509,351 7,874,260 83% 75% 30% 31% Creekside 18 474 939,36
Slide 48: UAE Development – Location of Development Projects
UAE Development – Location of Development Projects Emaar Beachfront(1) Mina Rashid Lusaily(2) The Valley Garden Arabian Ranches I & II Arabian Ranches III (1) Emaar Beachfront partial acquisition completed and launched in Jan 2018. In March 2018 an MOU with Aldar was signed to jointly develop the pr
Slide 49: UAE Development – Expected Delivery Schedule (Units)
UAE Development – Expected Delivery Schedule (Units) Under Development Delivery Schedule Under Already Completed Development delivered 2020 2021 2022 2023 in 2019 - A - Emaar Development (fully consolidated) Downtown 13,115 7,861 2,038 1,294 2,954 2,731 882 Emaar Beachfront - 1,842 - - 902 346 594 D
Slide 50: UAE Development – Land Bank Details
UAE Development – Land Bank Details Land Bank Evolution through Investments & Strategic Partnerships Year Area 2012 Arabian Ranches II (million sq ft) GFA BTS 2011- 2019 Multiple CAGR 2013 Dubai Hills Estate ~22x ~50% 2014 Dubai Creek Harbour 2015 Emaar South 369 2016 Downtown Views, Ras Al Khaimah
Slide 51: International Development – Expected Delivery Schedule
International Development – Expected Delivery Schedule Under To be Cumulative Country Entity Completed 2020 2021 2022 2023 2024 Development developed till 2019 Subsidiaries Emaar Misr 7,313 6,889 8,347 7,270 713 3,336 1,887 1,036 1,226 Emaar Middle 927 - - 620 230 77 - - - East Emaar Turkey 985 320
Slide 52: International Development – Land Bank Details
International Development – Land Bank Details Gross Land Area International Land Bank (Million SQFT) Saudi Arabia (Emaar Economic City) 1,119.41 Saudi Arabia (Emaar Middle East) 3.21 India (Emaar MGF) 150.97 Egypt 44.76 Pakistan 15.38 Turkey 6.08 Lebanon 3.42 Total Key International Markets 1,343.23
Slide 53: 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 • 100% consolidation • Neutral impa
Slide 54: Hospitality Group – Current Portfolio
Hospitality Group – Current Portfolio Residences in Hotel Hotel Management Company Classification Keys Operational Pool (5) Emaar Hospitality Group Hotel Portfolio Dubai Armani Hotel at Burj Khalifa Armani Hotel - Dubai 5 Star 160 23 2010 Address Downtown Dubai TAH&R(2) 5 Star 220 193 2008 Address D
Slide 55: Hospitality Group – Hotels / Apartments Under Development
Hospitality Group – Hotels / Apartments Under Development Serviced Estimated Hotel Location Launch Keys 1 Apartments Completion Vida Dubai Marina Dubai Marina 2017 158 360 2021 Vida Dubai Mall Downtown 2017 195 380 2021 Rove La Mer La Mer District 2018 366 NA 2020 2 Rove City Walk City Walk 2018 566
Slide 56: Fair Valuation Overview – GAV By Segment
Fair Valuation Overview – GAV By Segment December 2019 Book Value Split December 2019 Fair Value SalesSplit Sales 2% 4% 3% 1% 7% 5% 35% 42% 22% 38% 23% 18% Total AED 117 Bn Total AED 184 Bn UAE Development International Development UAE Development International Development Retail & Leasing Hospitali
Slide 57: Fair Valuation Overview – GAV By Segment (Cont’d)
Fair Valuation Overview – GAV By Segment (Cont’d) GAV: Development Properties GAV: Fixed Assets 2019 2018 2019 2018 Book Fair Book Fair Book Fair Book Fair AED Million AED Million Value Value Value Value Value Value Value Value UAE 22,365 36,644 20,037 39,748 Hotels, Convention Center & Serviced 4,9
Slide 58: Fair Valuation Overview – NAV Table
Fair Valuation Overview – NAV Table 2019 2018 Book Value Fair Value Book Value Fair Value Cash and bank balances 6,796 6,796 9,494 9,494 Trade and Other Receivables 25,924 25,924 21,441 21,441 Development Properties 40,320 61,558 38,384 68,727 Investment in Associates and Joint Ventures 4,923 5,057
Slide 59: Group Structure
Group Structure (3) (3) 58 | EMAAR PROPERTIES
Slide 60: Thank You
Thank You EMAAR PROPERTIES Name – Abhay Singhvi Email id - ASinghvi@emaar.ae 59 | EMAAR PROPERTIES
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