Al Dar Properties · ADX:ALDAR
Al Dar Properties — Q2 2022 Earnings Presentation
35 slides from Al Dar Properties's earnings presentation, Jul 28, 2022
Slide 1: Q2 2022 Results Presentation
Q2 2022 RESULTS PRESENTATION QUARTER ENDED 30 JUNE 2022 28 JULY 2022
Slide 2: Agenda
AGENDA 1 Aldar Value Proposition 2 Q2 2022 Results Summary 3 Aldar Development 4 Aldar Investment 5 Appendix INVESTOR PRESENTATION Q2 2022 2
Slide 3: Aldar Value Proposition
ALDAR VALUE PROPOSITION INVESTOR PRESENTATION Q2 2022 3
Slide 4: Leading Regional Real Estate Play Delivering Growth
LEADING REGIONAL REAL ESTATE PLAY DELIVERING GROWTH BENEFITING FROM ACCESS TO SIGNIFICANT GROWTH CAPITAL AND SUPPORTED BY STRONG MACRO TAILWINDS INVESTMENT HIGHLIGHTS ✓ Abu Dhabi master developer of iconic destinations with proven delivery and sales track-record and leading share in off-plan residen
Slide 5: Key Value Drivers
KEY VALUE DRIVERS LEADING ABU DHABI PROPERTY COMPANY WITH DIVERSIFIED BUSINESS MODEL COMPRISED OF TWO CORE BUSINESSES: MARKET LEADING FRANCHISES ACROSS ASSET MANAGEMENT (ALDAR INVESTMENT) AND HOMEBUILDING (ALDAR DEVELOPMENT) Mkt Cap: AED 38.0bn / US$ 10.4bn1 Revenue: AED 8.3bn / US$ 2.3bn3 Credit ra
Slide 6: Robust Group Balance Sheet Supporting Growth
ROBUST GROUP BALANCE SHEET SUPPORTING GROWTH HIGHEST NON-GRE / CORPORATE CREDIT RATING OF BAA1 (ALDAR INVESTMENT PROPERTIES) WITH ONE OF THE LOWEST COSTS OF CAPITAL Debt and Facilities Breakdown AED bn Q2 2022 Debt 8.1 3.7 Cash 10.2 4.9 Equity 29.8 4.5 Total Assets 51.6 Sukuk Facilities drawn Facili
Slide 7: Aldar Growth Agenda
ALDAR GROWTH AGENDA WELL-FUNDED AND LIQUID BALANCE SHEET WITH FURTHER GROWTH CAPITAL FROM APOLLO TO FUND WAVE OF DEPLOYMENT AED 11BN DEPLOYMENT ANNOUNCED IN YTD 20221. AED 5BN OF EQUITY TO BE SPENT OVER NEXT 12 MONTHS DEVELOPMENT INVESTMENT • Structural increase in Abu Dhabi • Capital deployment for
Slide 8: Capital Deployment – YTD 2022
CAPITAL DEPLOYMENT – YTD 2022 SIGNIFICANT ACTIVITY IN YTD 2022 ACROSS EXISTING AND NEW MARKETS: C. AED 11 BN OF CAPITAL DEPLOYED OR COMMITTED – 7-8% STABILIZED NOI YIELD ON INVESTMENTS Aldar Investment (c. AED 7.0bn) Aldar Development (c. AED 4.0bn) Date Transaction Value (AEDm) Segment Date Transac
Slide 9: Apollo Transaction
APOLLO TRANSACTION ALDAR RAISED US$1.4B IN EQUITY & GROWTH CAPITAL FROM APOLLO, WHICH HAS ENABLED THE MONETIZATION OF THE LONG-TERM LAND BANK AND ADDITIONAL SOURCES OF GROWTH CAPITAL US$1.4bn of Long Term Investment 1 ▪ US$ 500m investment into a joint venture between Land Joint ■ Land Joint Venture
Slide 10: Q2 2022 Results Summary
Q2 2022 RESULTS SUMMARY INVESTOR PRESENTATION Q2 2022 10
Slide 11: Q2 2022 – Key Highlights
Q2 2022 – KEY HIGHLIGHTS Exceptional Group performance ▪ Group Revenue +22% YoY and Net Profit +62% YoY driven by growth in UAE business and inclusion of SODIC continues into Q2 ▪ Strong balance sheet with AED 6bn of free & subsidiary cash and AED 4.9bn of undrawn committed facilities 2022… ▪ Q2 Gro
Slide 12: Q2 2022 – Group Financial Highlights
Q2 2022 – GROUP FINANCIAL HIGHLIGHTS AEDm Q2 2022 Q2 2021 Var Revenue 2,669 2,192 22% Gross Profit 1,194 824 45% Margin % 45% 38% 710bps EBITDA 978 641 52.5% Margin % 37% 29% 740bps Adj. EBITDA1 820 640 28% Margin % 31% 29% 150bps Net profit 841 521 62% Margin % 32% 24% 780bps Note: 1. Adjusted for
Slide 13: H1 2022 – Group Financial Highlights
H1 2022 – GROUP FINANCIAL HIGHLIGHTS AEDm H1 2022 H1 2021 Var Revenue 5,353 4,233 26% Gross Profit 2,312 1,600 44% Margin % 43% 38% 540bps EBITDA 1,786 1,300 37% Margin % 33% 31% 270bps Adj. EBITDA1 1,628 1,209 35% Margin % 30% 29% 180bps Net profit 1,529 1,065 44% Margin % 29% 25% 340bps Note: 1. A
Slide 14: Balance Sheet
BALANCE SHEET ROBUST BALANCE SHEET POSITION SUPPORTED BY PRUDENT CAPITAL MANAGEMENT AND GOVERNANCE BALANCE SHEET LEVERAGE1 Aldar Aldar Investment Development AED millions 30 Jun 2022 31 Dec 2021 Outstanding ▪ Sukuk: 3.7bn ▪ Bank: 0.7bn ASSETS Debt (AED bn) ▪ Bank: 3.7bn (o/w SODIC: 604m) (as at 30-J
Slide 15: Q2 2022 – Key Sustainability Updates
Q2 2022 – KEY SUSTAINABILITY UPDATES Social ▪ Invested AED 4m in two social contracting projects by Ma’an (the Government authority of social contribution) ▪ Pledged AED 5m towards the 1 Billion Meals Initiative, organized by Mohammed bin Rashid Al Maktoum Global Initiatives (MBRGI), to provide food
Slide 16: 2022 Outlook / Guidance
2022 OUTLOOK / GUIDANCE ▪ Strong deal pipeline with AED 5bn equity expected to be deployed over next 12 months into Group new geographies (KSA, Dubai) and across segments (Development, Education, Logistics) ▪ 2022 Group sales guidance of c. AED 10-11bn ─ 2022 UAE sales guidance of AED 7-8bn Developm
Slide 17: Aldar Development
ALDAR DEVELOPMENT INVESTOR PRESENTATION Q2 2022 17
Slide 18: Aldar Development Q2 2022 Financial Performance
ALDAR DEVELOPMENT Q2 2022 FINANCIAL PERFORMANCE AED mn Q2 2022 Q2 2021 Var Group Sales 3,119 2,353 33% Property Development & Sales UAE 2,497 2,353 6% • Group sales (incl. SODIC) +33% y-o-y to AED 3.1bn Egypt 622 - - • Development revenue +31% y-o-y, driven by record sales from new project launches
Slide 19: Aldar Development H1 2022 Financial Performance
ALDAR DEVELOPMENT H1 2022 FINANCIAL PERFORMANCE AED mn H1 2022 H1 2021 Var Group Sales 5,332 3,443 54% Property Development & Sales UAE 4,010 3,443 16% • Group sales (incl. SODIC) +55% y-o-y to AED 5.3bn Egypt 1,322 - - • Development revenue +40% y-o-y, driven by record sales from new project Revenu
Slide 20: Property Development & Sales – H1 2022 Sales Breakdown
PROPERTY DEVELOPMENT & SALES – H1 2022 SALES BREAKDOWN AED 4.0BN IN UAE SALES FOR H1 2022 ACROSS NEW PROJECT LAUNCHES, COMMERCIAL PLOT SALES AND INVENTORY SALES SIGNIFICANT INTERNATIONAL DEMAND FOR SAADIYAT GROVE LAUNCHED IN H1 2022 Breakdown of H1 22 Sales Saadiyat Grove Sales Breakdown ▪ Branded /
Slide 21: Land Bank Overview
LAND BANK OVERVIEW ALDAR HAS ACCESS TO A LARGE AND HIGHLY VALUE ACCRETIVE LAND BANK OF C. 69M SQM1 WHICH IS MONETIZED THROUGH DESTINATION MASTER PLANNING / DEVELOPMENT AND ONGOING INVESTMENT KEY CURRENT DESTINATIONS INCLUDE YAS AND SAADIYAT AND FUTURE DESTINATIONS INCLUDE MINA ZAYED AND AL GHADEER D
Slide 22: UAE Development Projects Pipeline
UAE DEVELOPMENT PROJECTS PIPELINE Total as at 30 Jun 22 Highlights Project Location Launch date Sold units Net Sales value (AEDm) Units launched % sold % completion Project Status Ansam Yas Island 2014 547 958 547 100.0% 100% Handed over Hadeel Al Raha Beach 2014 233 482 233 100.0% 100% Handed over
Slide 23: Aldar Investment
ALDAR INVESTMENT INVESTOR PRESENTATION Q2 2022 23
Slide 24: Aldar Investment Q2 2022 Financial Performance
ALDAR INVESTMENT Q2 2022 FINANCIAL PERFORMANCE AED mn Q2 2022 Q2 2021 Var Recurring revenue1 893 777 15% Investment Properties Investment Properties2,3 452 414 9% • Retail: Q2 EBITDA +20% YoY to AED 209m, driven by Yas Mall repositioning, Hospitality & Leisure 137 74 85% fair value increases and acq
Slide 25: Aldar Investment H1 2022 Financial Performance
ALDAR INVESTMENT H1 2022 FINANCIAL PERFORMANCE AED mn H1 2022 H1 2021 Var Recurring revenue1 1,752 1,565 12% Investment Properties Investment Properties2 894 834 7% • Retail: H1 EBITDA +24% YoY to AED 327m, driven by Yas Mall repositioning, Hospitality & Leisure 266 167 60% fair value increases and
Slide 26: Aldar Investment Capital Deployment – YTD 2022
ALDAR INVESTMENT CAPITAL DEPLOYMENT – YTD 2022 C. AED 7 BN OF CAPITAL DEPLOYED ACROSS EXISTING AND NEW SEGMENTS – NOI YIELD GUIDANCE OF 7-8% Capital Deployment FY 2021 (YTD 2022)2 PF YTD 20222,3 Commercial Logistics Retail Commercial 3% 80% Commercial 19% Logistics 46% 13% 33% Retail Investment 38%
Slide 27: Investment Properties Overview
INVESTMENT PROPERTIES OVERVIEW1 COMMERCIAL RESIDENTIAL RETAIL LOGISTICS No. 13 13 33 4 Leasable area 291,014 sqm 831,848 sqm 518,200 sqm 298,000 sqm Occupancy 92% 95% 90% 90% WAULTS (yrs) 4.3 3.4 4.0 4.2 Q2 22 Revenue AED 110m (Q2 21: AED 111m) AED 149m (Q2 21: AED 148m) AED 179m (Q2 21: AED 155m) A
Slide 28: Hospitality & Leisure
HOSPITALITY & LEISURE BROAD RESILIENT PORTFOLIO MAKE UP HOTELS • The hotel portfolio consists of assets from 3 to 5 star, in addition to hotel apartments AED m Q2 2022 • Key assets: Revenue 137 - W Yas Island - Radisson Blu - Crowne Plaza EBITDA 23 - Rotana - Anantara Eastern Mangroves EBITDA Margin
Slide 29: Aldar Education
ALDAR EDUCATION ▪ Leading operator and provider of private education in Abu ▪ In H1 2022, Aldar Education reported a 3% y-o-y increase in EBITDA Dhabi with the largest network of schools, delivering English to AED 83 million while enrolments increased to over 27,000 and American curriculums adapted
Slide 30: Principal Investments
PRINCIPAL INVESTMENTS1 ▪ Aldar’s real estate services arm is comprised ▪ Principal Investments H1 EBITDA increased 35% YoY to AED 39m of Khidmah, a facilities management business and Provis a property management ▪ Largely due to Provis’ new revenue streams such as the integrated facilities business
Slide 31: Appendix
APPENDIX INVESTOR PRESENTATION Q2 2022 31
Slide 32: Segmental Breakdown – Q2 2022 vs. Q2 2021 & Q1 2022
SEGMENTAL BREAKDOWN – Q2 2022 vs. Q2 2021 & Q1 20221 REVENUE (AEDm)2 1,235 1,135 978 452 414 442 342 371 262 283 280 137 74 129 142 138 139 162 152 149 n.a Investment Properties Hospitality & Leisure Education Principal Investments1 Property Development & Project Management Egypt Sales Services Q2 2
Slide 33: UAE Policy Reforms and Energy Strategy
UAE POLICY REFORMS AND ENERGY STRATEGY FEDERAL ANNOUNCEMENTS ENERGY INDUSTRY ▪ H.H. Sheikh Mohamed bin Zayed Al Nahyan was appointed President of the UAE on 14 May 2022. ▪ ADNOC will continue to deliver on its 2030 strategy, including its value ▪ Rapid rollout of a major vaccination campaign underpi
Slide 34: Contact Us
CONTACT US For any further enquiries please contact: Mike Wallace Executive Director – Corporate Finance & Treasury Tel: +971 (0)2 810 5599 Email: mwallace@aldar.com Samar Khan Head of Investor Relations Tel: +971 (0)2 810 5624 Email: skhan@aldar.com INVESTOR PRESENTATION Q2 2022 34
Slide 35: Thank You
THANK YOU INVESTOR PRESENTATION Q2 2022 35