Emaar Properties (p.j.s.c) · DFM:EMAAR
Emaar Properties (p.j.s.c) — Emaar Malls PJSC — Q3 2020 Earnings Presentation
38 slides from Emaar Properties (p.j.s.c)'s earnings presentation, Nov 15, 2020
Slide 1: Emaar Malls PJSC
MALLS Emaar Malls PJSC Leading Owner and Operator of Dominant Retail Assets Investor Presentation November 2020 0 | EMAAR MALLS
Slide 2: Disclaimer
Disclaimer Emaar Malls 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 responsibility o
Slide 3: Discussion Summary
Discussion Summary Investment Rationale Business Overview Business Strategy & Outlook Q3 & 9M 2020 Results Update Annexure 2 | EMAAR MALLS
Slide 4: Investment Rationale
Investment Rationale 3 | EMAAR MALLS
Slide 5: Emaar Malls at a Glance
Emaar Malls at a Glance Owns & Operates 363 Retail Assets High Operating Margin with GLA of 6.64 Mn sq. ft. EBITDA Margin2 – 69.7% Owner of The Dubai Mall – 136 Mn Footfall (CAGR1 2%) Most Visited Mall in the World 91% Occupancy Rate Omnichannel Presence through Namshi Annual Gross Rental Income Rev
Slide 6: Strong Performance Track Record
Strong Performance Track Record Emaar Malls Delivered Consistent Growth in Challenging Market Environment over 2015 to 2019 Rental Income In AED Mn EBITDA & PAT Margin % 1 CAGR 5% EBITDA CAGR 7% PAT CAGR 9% 3,599 3,647 80.5% 81.5% 80.9% 75.2% 75.8% 3,227 3,323 2,992 63.0% 63.4% 64.0% 55.3% 58.1% 201
Slide 7: Consistently Outperformed the Retail Market
Consistently Outperformed the Retail Market Emaar Malls Outperformed Dubai Retail Market over 2018-2019 Retailer’s Flight to Quality - Emaar Malls are the top choice for retailers in a difficult environment ✓ Well-established presence, superior positioning, strong footfalls ✓ Benefits of Emaar’s int
Slide 8: Healthy Dividend Payout
Healthy Dividend Payout Strong Track Record and Proven Expertise To Generate Healthy, Predictable And Sustainable Returns In AED Bn 1.3 1.3 1.3 1.3 6% 79% 69% 5% 62% 58% 4% 4% 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 AED 5.2 Bn Cumulative Dividends Attractive Dividend Yield Robust
Slide 9: Comfortable Leverage and Credit Profile
Comfortable Leverage and Credit Profile Solid Credit Profile with very Comfortable Leverage and Significant Debt Coverage AED Million Dec 2019 Sep 2020 Key Ratios Dec 2019 Sep 2020 Debt 3,524 2,881 Debt / NAV 0.07 0.05 Cash 195 205 Debt / Equity 0.19 0.15 Net Debt 3,329 2,676 Debt / Total Assets 0.1
Slide 10: Best-in-Class Retail Assets, Trading at Discount to NAV
Best-in-Class Retail Assets, Trading at Discount to NAV Emaar Malls is Trading at Significant Discount to its NAV despite Superior Financial Metrics 133% -18% Market Cap (AED Bn) 39% 2019 Implied Cap Rate 1,3 -49% Premium / (Discount) to BV Emaar Malls 11.4% 35.9 24.7 US Peers 4.8% Premium / (Discou
Slide 11: Business Overview
Business Overview 10 | EMAAR MALLS
Slide 12: Preferred Gateway to Dubai's Consumerism for Aspiring Retailers and Brands
Preferred Gateway to Dubai’s Consumerism for Aspiring Retailers and Brands Diverse Retailing Formats with Strong Positioning & Experiential Retailing Along Superior Design & Architecture Established Presence with Leisure & Entertainment • Super-regional malls, regional • Prime urban location, strong
Slide 13: Established Portfolio with Diverse Retailing Formats
Established Portfolio with Diverse Retailing Formats… Total GLA Retail Assets Division Location & Catchment Key Highlights ('000 sq. ft.) • Downtown Dubai – • World renowned shopping & entertainment destination Super 500 acre flagship mega- • 1,200+ stores, leading retailers, marquee global brands T
Slide 14: With an Appealing Design & Architecture
…With an Appealing Design & Architecture 13 | EMAAR MALLS
Slide 15: Complemented by Fascinating Entertainment Avenues
…Complemented by Fascinating Entertainment Avenues At The Top Dubai Aquarium & Underwater Zoo VR Park World’s highest observation desk in Burj Khalifa Featuring world’s largest acrylic viewing panels Largest virtual reality park - 75,000 sq. ft. Kidzania Reel Cinemas Dubai Ice Rink Children’s edutai
Slide 16: Focus on Digitalisation for Enhanced Customer Service
Focus on Digitalisation for Enhanced Customer Service… THE DUBAI MALL APP 2.0 – CORE FEATURES Digital Initiatives taken at The Dubai Mall – Easy Parking ✓ Delivery Service ✓ Leveraging customer data analytics to better understand customer buying behaviour, taste and preferences 15 | EMAAR MALLS
Slide 17: With Active Marketing Events for Better Customer Engagement
…With Active Marketing Events for Better Customer Engagement Emirates Skywards Miles Loyalty Program at The Dubai Mall • Members – 428 k • Spend captured since inception – AED 4,484 Mn • Number of transactions since inception – 2,337 k 16 | EMAAR MALLS
Slide 18: Diversified Tenant Mix & Category Mix
Diversified Tenant Mix & Category Mix… Diverse Retailers And Marquee Brands With Many Having Exclusive Presence At Emaar Malls 2019 Category Mix - % GLA Food & Beverage, 18.0% Eyecare & Opticals, 0.9% Chocolatiers, 0.7% Books & Stationary, 1.4% Pharmacy & Nutrition, 1.0% Health & Beauty, 5.0% Entert
Slide 19: Active Tenant & Space Management with Healthy Lease Renewals
Active Tenant & Space Management with Healthy Lease Renewals… Active Tenant Management Portfolio Lease Expiry Schedule % GLA of main unit expiring leases • Meet changing retail trends and evolving 37% consumer needs • Offer innovative & fresh retail concepts 22% 19% • Tenant re-zoning & re-sizing to
Slide 20: Steady Rental Income Growth, High Operating Profitability
…And Steady Rental Income Growth, High Operating Profitability Steady Rental Income Growth Robust Revenue Model Revenue Model: 5% 3,647 • Rent equals higher of base rent or turnover rent 3,599 3,227 3,323 10% 10% • Base rent is increased at a pre-defined rate over the lease term of 2,992 12% 12% 3-5
Slide 21: Omni-channel Presence Through Namshi
Omni-channel Presence Through Namshi • Market leader in large & growing online fashion in core GCC markets • Largest brand assortment with 900 brands and growing • Preferred fashion channel, young & trendy • High NPS (net promoter score) Net Merchandise Value Gross Profit 24% 1,028 + 38%2 + 22%2 849
Slide 22: Omni-channel Presence Through Namshi (Contd.)
Omni-channel Presence Through Namshi (Contd.) 2019 Geographical Mix Unrivalled Product Assortment in Middle East Other GCC 6% Prominent High Quality Fashion Brands UAE 23% KSA 71% 2019 Category Mix Sports Private Label 35% 13% Gifts, Home Growing White Label Portfolio & Beauty 11% Accessories & Fema
Slide 23: Sustainability Initiatives
Sustainability Initiatives Sustainability is an integral part of strategic and cultural transformation at Emaar Group Commitment to a sustainable future is focussed on three initiatives addressing energy, water and waste Our Sustainability Initiatives Energy • Preserving natural resources, reducing
Slide 24: Business Strategy & Outlook
Business Strategy & Outlook 23 | EMAAR MALLS
Slide 25: Multi-format Omni-channel Growth Strategy
Multi-format Omni-channel Growth Strategy Leverage Superior Asset Mix & Omni-channel Presence • Offer diverse retailing experience - super-regional malls, regional malls, specialty retail, community retail centers • Focus on constant innovations and improvements to deliver superior experiences • Str
Slide 26: Adopt Low-Risk Model For Future Expansions
Adopt Low-Risk Model For Future Expansions Projects under Emaar Malls GLA Expected Project Name Operate As Pure Rental Income Play (‘000 sq.ft.) Opening TDM Boulevard Expansion c. 110 H1 2021 • Pure Rental Income Play • Focus on rental income growth and cash flow generation • Minimal Development Ris
Slide 27: New Expansions – Dubai Hills Mall
New Expansions – Strong Growth Potential Dubai Hills Mall – Regional Shopping Mall Superior Positioning & Offerings Strong Catchment • Outdoor high-street mall with superior design & architecture • Located between Sheikh Mohammad Bin Zayed Road and Al Khail Road • Differentiated offerings with over
Slide 28: New Expansions – Dubai Expo Mall
New Expansions – Strong Growth Potential Dubai Expo Mall – Regional Shopping Mall Superior Positioning & Offerings Strong Catchment • Over 190 retail & F&B outlets • Located close to Expo 2020 site • 1,000+ parking spaces • Close proximity to Al Maktoum international airport • Anchored by 9-screen C
Slide 29: 9M 2020 Results Update
9M 2020 Results Update 28 | EMAAR MALLS
Slide 30: 9M 2020 Key Highlights
9M 2020 Key Highlights The Dubai Mall 1st Shopping Malls won Namshi Revenues Occupancy GBAC STARTM(1) AED 933 Mn 91% accreditation for exceptional +35% YoY hygiene standards Introduced flexible rent relief Achieved 21%(2) cost policy including tiered base Revenues reduction in 9M-2020 without rent w
Slide 31: Emaar Malls – Result Highlights
Emaar Malls – Result Highlights AED Million Emaar Malls Namshi Consolidated1 Revenue 1,561 933 2,493 Cost of revenue (252) (738) (989) Gross profit 1,309 195 1,504 % Gross margin 83.9% 20.9% 60.3% Sales, marketing, general & administration expenses (221) (217) (438) EBITDA 1,088 (22) 1,066 % EBITDA
Slide 32: Emaar Malls – Consolidated Result Highlights
Emaar Malls – Consolidated Result Highlights AED Million Q3 2020 Q3 2019 % Change 9M 2020 9M 2019 % Change Revenue 836 1,185 (29%) 2,493 3,412 (27%) Cost of revenue (303) (314) 4% (989) (842) (17%) Gross profit 533 871 (39%) 1,504 2,570 (41%) % Gross margin 63.8% 73.5% 60.3% 75.3% Sales, marketing,
Slide 33: Emaar Malls Excl. Namshi – Result Highlights
Emaar Malls Excl. Namshi – Result Highlights AED Million Q3 2020 Q3 2019 % Change 9M 2020 9M 2019 % Change Revenue 567 919 (38%) 1,561 2,725 (43%) Cost of revenue (91) (98) (7%) (252) (310) (19%) Gross profit 476 821 (42%) 1,309 2,415 (46%) % Gross margin 84.0% 89.3% 83.9% 88.6% Sales, marketing, ge
Slide 34: Emaar Malls Excl. Namshi – Consolidated Result Highlights
Emaar Malls Excl. Namshi – Consolidated Result Highlights Rental Income Breakup (AED Mn) Footfalls - Mn Occupancy % Chart Title 92% 91% 2,725 99 3% 19% 2% 56 1,561 3% 21% 76% 23% 9M 2019 9M 2020 53% Key Highlights • Stable leasing occupancy of 91% 9M 2019 9M 2020 • The Dubai Malls is the first shopp
Slide 35: Emaar Malls – Consolidated Balance Sheet
Emaar Malls – Consolidated Balance Sheet 30-Sep-20 31-Dec-19 AED Million Carrying Value Fair Value Carrying Value Fair Value Assets Property plant and equipment & Investment Properties 22,356 53,285 22,369 52,315 Intangible Assets & Right to Use Assets 1,082 1,082 567 567 Bank balances and cash 205
Slide 36: Annexure
Annexure 35 | EMAAR MALLS
Slide 37: Emaar Group Overview
Emaar Group 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 since (25 ho
Slide 38: Thank You
Thank You EMAAR MALLS Name – Abhay Singhvi Email id - ASinghvi@emaar.ae 37 | EMAAR MALLS