Emaar Properties (p.j.s.c) · DFM:EMAAR

Emaar Properties (p.j.s.c) — Q1 2014 Earnings Presentation

44 slides from Emaar Properties (p.j.s.c)'s earnings presentation, Apr 24, 2014

  1. Slide 1: Emaar Properties PJSC Corporate Presentation

    Emaar Properties PJSC Corporate Presentation April 24th, 2014 © Emaar 2014

  2. Slide 2: Emaar Overview

    EMAAR OVERVIEW © Emaar 2014 2

  3. Slide 3: Emaar at a Glance

    EMAAR at a Glance Emaar Properties is the largest publicly-listed property developer in the MENA region Market Cap (1) : AED 71.27 bn (US $19.40 bn) Revenues : FY 2011 AED 8.11 bn (US $ 2.21 bn) FY 2012 AED 8.24 bn (US $ 2.24 bn) FY 2013 AED 10.33 bn (US $ 2.81 bn) Q1 2014 AED 2.26 bn (US $ 0.62 bn)

  4. Slide 4: Emaar's Strategy & Goals

    EMAAR’s Strategy & Goals Business Strategy: To replicate our Dubai business model and practices in international markets, leveraging our execution capabilities and competencies in design, project management and distribution/sales Our international land bank includes approx 226* million sqm across In

  5. Slide 5: Emaar's Business Strategy – Mid Term

    EMAAR’s Business Strategy – Mid Term • Take advantage of the recent buoyancy in Dubai’s Real Estate market by developing new iconic projects • Enter into Joint ventures in Dubai to get access to significant land bank with no commitment for land cost • Develop Rental / Mall assets in other countries

  6. Slide 6: Emaar Group Q1 2014 Performance Highlights

    EMAAR Group Q1 2014 Performance Highlights • Dubai RE:. Emaar has successfully launched 8 new projects - Boulevard Crescent, Boulevard Point, Vida Downtown - in Downtown Dubai, Lila, Rasha, Yasmin - in Arabian Ranches II and Mulberry Park Heights, Plots - in Dubai Hills Estate (part of Mohammed Bin

  7. Slide 7: Q1 2014 Performance Highlights Cont'd

    EMAAR Group Q1 2014 Performance Highlights Cont’d Profitability for the period ended 31st March 2014 | • Revenues for Q1 2014 were AED 2.26 bn (versus 2013 AED 2.11 bn) • Net Operating Profit of Q1 2014 was AED 0.86 bn (versus 2013 AED 0.56 bn) Balance Sheet as at 31st December 2013 | remains robust

  8. Slide 8: Emaar Key Group Divisions

    EMAAR Key Group Divisions Property Property Malls Hotels Development Development and Resorts & UAE International Retail Hospitality •Market leading developer • Active in 10 targeted • Current retail space of • Developer, owner in Dubai Developer of the high growth countries over 690,000 and manager

  9. Slide 9: Strong Record of Execution

    Strong Record of Execution 37,351 37,542 40,000 32,673 33,500 35,279 35,000 29,454 30,000 26,378 21,571 21,477 25,000 18,289 19,791 21,402 17,794 14,686 20,000 12,152 16,192 8,217 12,918 15,000 5,965 10,000 4,870 14,226 14,736 14,879 15,211 15,488 15,874 15,971 13,185 5,000 8,048 10,227 - 2005 2006

  10. Slide 10: Investment Highlights

    INVESTMENT HIGHLIGHTS © Emaar 2014 10

  11. Slide 11: Shareholder's Value – NAV Computation

    Shareholder’s Value – NAV Computation (AED million) 2013 2012 Book value Fair value Book value Fair value Cash and bank balances 8,573 8,573 3,711 3,711 Trade and other receivables 3,414 3,414 3,559 3,559 Development properties 25,867 68,092 26,998 43,181 Investment in associates 5,820 6,982 6,428 6

  12. Slide 12: Shareholder's Value – NAV Computation

    Shareholder’s Value – NAV Computation (AED million) 2013 2012 Net Asset Value as per consolidated balance sheet 34,542 32,534 Add: Fair value in excess of book value for Development properties 32,960 15,547 Add: Fair value of assets in excess of book value for Investment 8,398 8,281 Properties * Add

  13. Slide 13: Evolution of Emaar Group Revenue

    Evolution of Emaar Group Revenue Segment-wise Revenue 4,800 4,361 5,000 4,096 4,000 AED millions 2,880 3,000 50% 46% 35% 1,264 1,346 2,000 42% 1,167 622 60% 1,000 12% 288 15% 28% 12% - 2012 2013 Q1 2014 Dubai Operations Leasing & Hospitality International © Emaar 2014 13

  14. Slide 14: Fair Value of Development Properties

    Fair Value of Development Properties (AED million) 2013 2012 Book value Fair value Book value Fair value UAE 12,562 43,777 13,653 19,195 Egypt 5,758 13,167 5,700 13,553 India 52 52 77 77 Turkey 3,354 4,147 3,160 3,848 KSA 1,553 2,211 1,574 2,527 Pakistan 714 2,120 757 1,341 Canada & USA 682 682 898

  15. Slide 15: Fair Value of Investment Properties

    Fair Value of Investment Properties (AED million) 2013 2012 Book value Fair value Book value Fair value Dubai Mall & Marina Mall * 6,329 13,429 6,399 13,429 Burj Dubai (Souk Al Bahar and other 516 817 478 817 retail locations) * Burj Dubai Business Square * 145 349 153 349 Gold & Diamond Park * 165

  16. Slide 16: Fair Value of Fixed Assets

    Fair Value of Fixed Assets (AED million) 2013 2012 Book value Fair value Book value Fair value Hotels, Convention centre & Service Appartments 4,130 8,134 4,186 6,424 Emaar Business Park 44 144 47 119 District Cooling Plant 686 686 347 347 At The Top 112 112 122 122 Leisure and Entertainment & Medic

  17. Slide 17: Shareholders' Value

    Shareholders’ Value 100 20 90 18 80 16 81 70 13.27 14 Shareholders' equity as per audited AED billions 60 12 AED per share financial statements 59 9.61 50 10 Net asset value (including FV of DP, 54 8.58 52 8.23 8.79 50 Assets and market value of listed 40 8 securites) Net asset value per share 30 6

  18. Slide 18: UAE Operations

    UAE OPERATIONS © Emaar 2014 18

  19. Slide 19: Property Development: UAE

    Property Development: UAE • Government Support: Historic land grants and 29% shareholding • Partnership with Quality Arabtec, Multiplex, Samsung, Al Futtaim Carillion, Contractors: Arabian Construction Company • Established Reputation: Timely deliveries of high quality properties • Strategic Partner

  20. Slide 20: Dubai RE – Key Strengths

    Dubai RE – Key Strengths • All Dubai RE projects currently under construction have been substantially sold. Recoveries remain strong as evident from increased revenues. • Pre-sales model utilised, with cash inflows from customers’ instalments financing the bulk of constructions costs. • Conservative

  21. Slide 21: Regional Business Highlights

    Regional Business Highlights Projects Completed Units under Deliveries till Deliveries Deliveries Deliveries Deliveries development 2013 2014 2015 2016 2017 Downtown Development 9,880 3,370 9,880 - 533 1,229 1,608 Downtown Commercial spaces (sq ft) 2,860,476 - 2,860,476 - - - - Dubai Marina 4,450 -

  22. Slide 22: International Operations

    INTERNATIONAL OPERATIONS © Emaar 2014

  23. Slide 23: Key International RE Markets – Unit Sales to Date

    Key International RE Markets–Unit Sales to Date Emaar has achieved an overall sales level of 85% in its key International markets Units Unit Sale % sales Country Entity Released achieved achieved Egypt Emaar Misr for Development S.A.E. 5,230 4,838 93% KSA Emaar Middle East 720 651 90% Subsidiaries S

  24. Slide 24: Key International Markets - Business Highlights

    Key International Markets - Business Highlights Units To be Actual Units Currently Developed Deliveries Deliveries Deliveries Country Entity Deliveries till Completed Under (Launches in 2014 2015 2016 2013 Development 2014-2016) Subsidiaries Egypt Emaar Misr 1,095 3,070 4,344 860 1,019 620 1,191 KSA

  25. Slide 25: International RE – Key Strengths

    International RE – Key Strengths • Successful expansion of Emaar’s RE development model to several International locations. This has enabled Emaar to grow simultaneously while limiting concentration risk on the Dubai real estate market. • For the International RE developments, Emaar has acquired its

  26. Slide 26: International RE – Key Strengths – contd.

    International RE – Key Strengths – contd. • A number of large projects are coming on line, each with localised demand and supply characteristics: • EME – Several projects are under development, with over 710 units successfully launched to date. Additional launches of residential units and commercial

  27. Slide 27: Segments

    SEGMENTS © Emaar 2014 27

  28. Slide 28: Malls – Key Strengths

    Malls – Key Strengths • Significant Gross Leasable Area (“GLA”) – All Dubai-based Mall assets are now open (5.9 m Sq Ft of GLA), with Total GLA Occupancy at 95% (Mar 2014). • The Dubai Mall - Opened in Nov-08 and is one of the largest malls in the world (3.7m sq ft GLA). GLA occupancy at 99% (Mar 20

  29. Slide 29: Malls – Key Strengths (Cont'd)

    Malls – Key Strengths (Cont’d) • Exclusive Tenants - Several exclusive tenants who do not have retail outlets anywhere else in the UAE / GCC including Bloomingdales and Galleries Lafayette • Retail Attractions - Below retail attractions provide impetus in terms of both footfall and revenues: - Reel

  30. Slide 30: Dubai Mall Footfall Trend

    Dubai Mall Footfall Trend Dubai Mall Average Quarterly Footfall The Dubai Mall Footfall 8.00 80 75 65 7.00 70 No. of visitors (Millions) 6.73 6.87 54 6.00 6.59 60 No. of Visitors (Millions) 6.08 47 6.01 5.00 5.62 5.53 50 5.16 5.02 4.85 4.00 4.47 40 4.26 4.20 31 4.15 4.17 3.00 3.75 3.57 30 3.42 21 2.

  31. Slide 31: Emaar Hospitality Group

    Emaar Hospitality Group Management Capacity Current Projects Category Operational Company Rooms Milan Armani Hotel Milan at Via Manzoni AHM(1) 5 Star 95 2011 Dubai Armani Hotel Dubai at Burj Khalifa AHM(1) 5 Star 160 2010 The Address Downtown Dubai TAH&R(2) 5 Star 196 2008 Al Manzil Hotel Emaar Hosp

  32. Slide 32: Emaar Hospitality Group

    Emaar Hospitality Group YTD, March 2014 The Address The Palace The Address The Address Vida Downtown Downtown Dubai Mall Dubai Marina Al Manzil Downtown Avail. room nights 17,640 21,780 21,960 18,000 17,730 14,040 Occupancy % 93% 91% 91% 92% 90% 87% ADR (AED) 2,175 1,889 1,865 1,205 1,112 1,138 RevP

  33. Slide 33: Emaar Hospitality – Key Strengths

    Emaar Hospitality – Key Strengths Portfolio of Hospitality Brands: The Hospitality Division has successfully developed recognisable brands for the different categories of assets which have driven the creation of brand equity. It has also the license rights of the “Armani” brand for development of a

  34. Slide 34: Emaar Hospitality – Key Strengths (Cont'd)

    Emaar Hospitality – Key Strengths (Cont’d) High Margin Lease Income: The operations of Nuran Serviced Apartments had generated regular, high margin annuity income from low maintenance prime assets in Dubai. Though such streams of income have now ceased with the sale of Nuran Marina and Nuran Greens

  35. Slide 35: Financial Highlights

    FINANCIAL HIGHLIGHTS © Emaar 2014 35

  36. Slide 36: Financial Performance – AED millions

    Financial Performance – AED millions Q1-14 Q1-13 % Q1-14 Q4-13 % Revenue 2,256 2,110 7% 2,256 2,762 (18%) Gross Profit 1,441 1,117 29% 1,441 1,516 (5%) SGA (620) (531) 17% (620) (743) (17%) Other (expense)/income 162 (19) 953% 162 (39) 515% Associates (16) (19) (16%) (16) 6 (367%) Income Tax (1) 4 (

  37. Slide 37: Balance Sheet and Ratio Analysis

    Balance Sheet and Ratio Analysis AED million 2009 2010 2011 2012 2013 Current Assets 5,915 8,014 5,823 7,017 12,809 Fixed Assets and Investment properties 15,368 16,649 16,299 16,040 15,907 Other Assets 42,862 37,841 37,932 38,094 36,216 Total Assets 64,145 62,504 60,054 61,151 64,932 Interest Beari

  38. Slide 38: Thank You

    THANK YOU © Emaar 2014 38

  39. Slide 39: Appendix

    APPENDIX © Emaar 2014 39

  40. Slide 40: Land Bank in Key Markets (including associates)

    Land Bank in Key Markets (including associates) Gross land Country area in millions sqm Kingdom of Saudi Arabia 165 India 43 Egypt 14 Pakistan 2 Turkey 1 Lebanon & Syria 1 Key Internantional Markets 226 UAE 25 Total 251 Land Bank Information for UAE Market - GCA information As of 31/Mar/2014 © Emaar

  41. Slide 41: Experienced & Highly Qualified Management Team

    Experienced & Highly Qualified Management Team Board of Directors Chairman: Mohamed Ali Alabbar Vice Chairman: Hussain Al Qemzi Managing Director: Ahmad Al Matrooshi Abdulla Lahej Ayman Hamdy Group CEO Company Secretary & Executive Director Legal Amit Jain Robert Booth Frederick Durie Other Group CF

  42. Slide 42: Group Structure

    Group Structure EMAAR PROPERTIES PJSC EMAAR DUBAI HOTELS & EMAAR EMAAR MALLS HOSPITALITY Property RESORTS Development INTERNATIONAL INVESTMENTS 100% 100% Projects - 100% 100% Emrill Services MGF-India KSA - EEC Turner Int’l ME Dubai Mall Giorgio Armani Nuran LLC 33.33% 48.86% 30.59% 50% 100% Hotels

  43. Slide 43: 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

  44. Slide 44: Thank You

    Thank You www.emaar.com © Emaar 2014 44

Emaar Properties PJSC — Q1 2014 Earnings Presentation on 6ix