Emaar Properties (p.j.s.c) · DFM:EMAAR
Emaar Properties (p.j.s.c) — Non-Deal Roadshow (May 2008)
59 slides from Emaar Properties (p.j.s.c)'s roadshow presentation, May 25, 2008
Slide 1: Emaar Properties PJSC Broker Outreach Presentation
Emaar Properties PJSC Broker Outreach Presentation Dubai May 25th, 2008
Slide 2: Mr. Arif Amiri
Mr. Arif Amiri Senior Director Investor Relations and Corporate Governance
Slide 3: 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 4: Agenda
Agenda • Emaar Overview • Investment Highlights • Business Operations • Financial Performance • Guidance
Slide 5: Emaar Overview
Emaar Overview
Slide 6: Emaar Timeline
Emaar Timeline Emaar launches newgrants Emaar and MGF jointly acquire RSH to enter the Indian retail sector. Emaar international projects, acquires Johnselling Laing Homes, Burj Dubai Sheikh construction Mohammed worknew Emaar’s acquires starts land; remaining 60% first strategy residents evolves sh
Slide 7: 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 72.2 bn (US$19.7 bn) FY 2007 Revenues: AED 17.6 bn (US$4.8 bn) FY 2007 Net Profit: AED 6.6 bn (US$1.8 bn) Land Bank(2): 519 million sqm Hotels: 4 hotels (912 keys) 322 serviced
Slide 8: 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 (John Laing Homes), project management (Turner) and distribution/sales (Hamptons). In the UAE we have 22.26* mill
Slide 9: Emaar's Value Creation Model
Emaar’s Value Creation Model Identify Growth Markets Establish Strong Local Partnerships Acquire Significant Land at Communities with Malls, Hotels, Build Hi-End Property Competitive Prices Education & Healthcare facilities Developments
Slide 10: Pre-Sales Funding Model
Pre-Sales Funding Model Example of typical Dubai-based pre-sales project financing Infrastructure & Construction Cumulative Cost Cumulative Pre-selling & Payment Received 600 500 495 AED Millions 400 396 347 300 269 308 185 272 200 116 158 100 48 70 0 0 Start 6 months 12 months 18 months 24 months 3
Slide 11: Emaar's Target Markets
Emaar’s Target Markets GDP/Capita Population 6% Growth Growth CAGR CAGR 5% Our UAE 05 - 08E 05 - 08E domestic Average Emaar 12.0% 2.1% Countries Expected Population Growth (CAGR 2005–2008E) market 4% Our target US 3.8% 1.0% international Western Europe 7.4% 0.3% markets Eastern Europe 14.9% -0.1% 3%
Slide 12: Strong Record of Execution
Strong Record of Execution Cumulative Number Residential Units Delivered
Slide 13: Investment Highlights
Investment Highlights
Slide 14: Our Domestic Market Remains Very Attractive
Our Domestic Market Remains Very Attractive Dubai Population and Tourists / Visitors In Millions Source: Based on Dubai Public Authorities Report
Slide 15: Quarterly Sales (UAE only)
Quarterly Sales (UAE only) Note: Sales above are primarily off plan pre-sales (not revenue) with revenue to be recognized in future quarters in line with Emaar’s percentage completion revenue recognition.
Slide 16: Our Domestic Market Remains Very Attractive
Our Domestic Market Remains Very Attractive Emaar Selling Prices Evolution in Dubai Average price per sqft of saleable area AED per sq/ft
Slide 17: Attractive Land Bank Secured at Competitive Valuations
Attractive Land Bank Secured at Competitive Valuations 600 519.06 500 467.93 71.27 46.97 400 Square metre in Millions 200 200 300 200 172.76 171.23 100 8.88 3.23 40.08 15.89 16.68 32.95 52.77 15.89 11.29 16.78 22.26 0 2004 2005 2006 2007 UAE India KSA Libya Others Notes: 1.The above includes land he
Slide 18: Fair Value & Book Value of Land Bank
Fair Value & Book Value of Land Bank 118,263 67,711 30,149 28,309 18,271 19,307 Notes: 1.The above includes land held by associated companies and takes into account 100% of the land in each country (not proportionate data).
Slide 19: Shareholder Value
Shareholder Value 120 + _. 16 + 18 100 + 103 Ga Shareholders’ equity as 41.58 74 per audited financial : o statements m0 + 712 5 5 9.53 4 = 70 7 (Ge C2 Netasset value (Including m 60 + A FV of land, assets and fi) +8 @ marketvalue of listed w 55 Wy securites) 40 + +6 37 —@Net asset value per share +
Slide 20: Business Operations
Business Operations
Slide 21: Mr. Richard Rodriguez
Mr. Richard Rodriguez CEO Emaar Dubai
Slide 22: Property Development: UAE
Property Development: UAE • Government Support: Historic land grants and 32% shareholding • Strategic Joint Venture: Bawadi LLC • Large Land Bank: 22.26 million sqm • Partnerships with Quality Arabtec, Nasa Multiplex, Samsung, Al Futtaim Carillion. Developers: • Established Reputation: Timely delive
Slide 23: Downtown Burj Dubai
Downtown Burj Dubai Downtown Burj Dubai is Emaar’s AED 73 billion (US$20 billion) flagship project. It is a mixed-use 500 acre community combining commercial, residential, hotel, entertainment, shopping and leisure outlets. Project details: • Burj Dubai – the World’s tallest building • The Dubai Mal
Slide 24: Dubai Marina
Dubai Marina Dubai Marina, with a project value of US$4.36 billion, is one of the largest waterfront developments of its kind in the region. With a total development area of 50 million sq ft, Dubai Marina includes a large canal with 3.5 km of waterfront. Project details: • Ten districts, each develo
Slide 25: Arabian Ranches
Arabian Ranches Arabian Ranches, with a development value of US$2 billion, is spread over 1,650 acres and includes an 18-hole championship course designed by Ian Baker-Finch and Nicklaus Design, a village community center, polo ground and equestrian centre. Project details: • 4,000 single family hom
Slide 26: Umm Al Quwain Marina
Umm Al Quwain Marina Umm Al Quwain Marina is an US$3.3 billion development by Umm Al Quwain Marina LLC, the joint venture between the Government of Umm Al Quwain and Emaar Middle East. Umm Al Quwain Marina will be a waterfront community spread over 2,000 acres along the shores of Khor Al Beidah, a n
Slide 27: 50/50 JV with Bawadi - Project Overview
50/50 JV with Bawadi - Project Overview Project Location Project Details Adjacent to Dubailand, the Bawadi project is located • AED 90 billion project to have: • 19,000 residential units approximately 8km from Arabian Ranches • 370,000 square meters of commercial space • 500,000 square meters of ret
Slide 28: Mr. Jim Badour
Mr. Jim Badour CEO Emaar Malls Group
Slide 29: Emaar Malls
Emaar Malls Emaar Malls is developing, leasing and asset managing retail facilities in and around Emaar communities. Current Emaar retail space includes: • Downtown Burj Dubai (excl Dubai Mall) 32,000 sqm GLA • Gold & Diamond Park (Dubai) 48,000 sqm GLA • Various Emaar Community Retail Space (Dubai)
Slide 30: Emaar Malls - Expected Gross Leasable Area
Emaar Malls Emaar Malls – Expected Gross Leasable Area (Dubai & International) Total GLA (Sqm) 1 1. As of March 2008
Slide 31: Mr. Marc Dardenne
Mr. Marc Dardenne CEO Hospitality and Emaar Hotels & Resorts
Slide 32: Emaar Hospitality Group
Emaar Hospitality Group Emaar Hospitality Group owns and manages a diversified portfolio of hospitality assets with a development value US$1 billion (AED 3.67 billion). Properties are either self managed (e.g. The Address, Nuran, Hayya!) or by leading 3rd party operators (e.g. Southern Sun, Accor, T
Slide 33: Emaar Hotels and Resorts
Emaar Hotels and Resorts Emaar Hotels and Resorts will develop, own and operate Armani branded hotels in major international cities, including 7 luxury hotels and 3 vacation resorts over the next 10 years with expected investment value in excess of AED 5 billion. Current Projects: Burj Dubai 160 Sui
Slide 34: Emaar Hospitality Group
Emaar Hospitality Group Capacity Current Projects Management Company Category Operational Rooms Dubai Burj Dubai Lake Hotel Emaar Hotels Management 5 Star 196 2008 Al Manzil Hotel* Southern Sun 4 Star 197 2007 Qamardeen Hotel* Southern Sun 4 Star 186 2007 The Palace Hotel* Accor 5 Star 242 2007 Duba
Slide 35: Mr. Amit Jain
Mr. Amit Jain CFO Emaar Dubai
Slide 36: Saudi Arabia – King Abdullah Economic City
Saudi Arabia – King Abdullah Economic City Overview Emaar the Economic City (EEC), a Tadawul listed company, is owned 31% by Emaar, 39% by other founding shareholders and 30% by public investors King Abdullah Economic City is a new city. It is a AED 100 billion development over a total area of 168 m
Slide 37: Property Development: Saudi Arabia
Property Development: Saudi Arabia In addition to King Abdullah Economic City, Emaar is present in Saudi Arabia through a JV with Al Oula Group, a leading Saudi real estate company. Through this JV we are currently developing Al Khobar Lakes and Jeddah Gate. We also have a third project, Jeddah Hill
Slide 38: Property Development: Egypt
Property Development: Egypt Emaar Misr (100% wholly owned by Emaar Properties) is one of the largest foreign direct investors in the country’s real estate sector with a development portfolio of EGP 31.67 billion (US$5.55 billion). Emaar Misr’s current portfolio includes: • Uptown Cairo: EGP 12 billi
Slide 39: Property Development: Morocco
Property Development: Morocco Emaar Morocco is one of the largest foreign direct investors in Morocco with projects of development value MAD 56 billion (US$6.867 billion) through strategic partnerships with the Moroccan Government and Onapar. Emaar Morocco has signed a MoU with His Majesty King Moha
Slide 40: Property Development: Jordan
Property Development: Jordan Emaar, along with a number of regional and Jordanian investors have formed The Dead Sea Company, which is developing the Samarah, Dead Sea Resort project in line with the growth plans outlined for the country by the King Abdullah II Fund for Development. In addition to t
Slide 41: Property Development: Syria
Property Development: Syria Emaar Syria formed a JV with IGO to develop Eighth Gate, a master-planned mixed-use SYP51 billion (US$1.1 billion) community. Eighth Gate includes: • Three distinct zones – Commercial Centre, Waterfront and Tourist Zone • One of the largest Malls in the region • Damascus
Slide 42: Property Development: Turkey
Property Development: Turkey Tuscan Valley, a JV between Emaar and Atasay, is located in the western part of Istanbul, 20km from Ataturk International Airport. These exclusive villas are situated on the slopes of the nearby Buyukcekmece Lake and the Marmara Sea. In February 2008, Emaar Turkey purcha
Slide 43: Property Development: India
Property Development: India Emaar Properties and MGF Land Limited formed Emaar MGF in February 2005. Emaar MGF’s primary business is the development of properties in the residential, commercial, retail and hospitality sectors. In addition, they will also explore healthcare, education and infrastruct
Slide 44: Property Development: India
Property Development: India Jalandhar Ludhiana 238 Acres 347 Acres Land Reserves Dehradun Mohali City (Acres) 1,139 Acres 2,775 Acres Gurgaon 2808 Amritsar Gurgaon Mohali 2775 3 Acres 2,808 Acres Delhi 1313 Chail Lucknow 18 Acres Dehradun 1139 390 Acres Ghaziabad Goa 483 Shillong 378 Acres 80 Acres
Slide 45: Property Development: Pakistan
Property Development: Pakistan Three real estate developments in the cities of Islamabad and Karachi in Pakistan, with a total investment of AED 8.8 billion (US$2.4 billion), will include a series of master planned communities with commercial, residential and retail components. All three projects ar
Slide 46: Property Development: Indonesia
Property Development: Indonesia In March 2008, Emaar signed a JV agreement with The Bali Tourism Development Corporation (BTDC), a key partner assisting the Indonesian Government in infrastructure building. The JV’s flagship Lombok project is envisaged as a world-class residential and resort communi
Slide 47: Property Development: North America
Property Development: North America Emaar Properties acquired John Laing Homes (JLH), the second largest privately held homebuilder in the U.S., in June 2006 for US$1.05 billion. JLH operates as a division of Emaar with its corporate headquarters in Newport Beach, CA. JLH operates 11 divisions with
Slide 48: Financial Highlights
Financial Highlights
Slide 49: Key Performance Indicators
Key Performance Indicators Operations vs. Investment Cash Flows Net Income and EPS 12.00 11.4 10.00 8.00 7 .1 (AED Billion) 6 .7 6 .1 6 .0 6.00 4.00 2 .93 .0 3 .2 3 .1 2 .9 2.00 0 .30 .2 0.00 2003 2004 2005 2006 2007 3M 2008 Investing Activities Cash Flow from Operations
Slide 50: Key Performance Indicators
Key Performance Indicators Revenue Gross Margin 20,000 60% 57% 18,000 17 ,5 6 6 48% 50% 49% 50% 16,000 (AED Million) 14 ,0 0 6 42% 14,000 39% 40% 12,000 10,000 30% 28% 8 ,3 6 1 8,000 20% 6,000 5 ,2 4 6 4,000 3 ,7 2 1 3 ,9 6 1 1,3 3 5 10% 2,000 0 0% 2002 2003 2004 2005 2006 2007 3M 2008 2002 2003 200
Slide 51: Strong Record of Value Creation
Strong Record of Value Creation Total Asset Evolution Net Profit Evolution 70000 7000 6 ,3 7 1 6 ,5 7 5 60000 5 4 ,7 9 1 5 7 ,7 17 6000 (AED Millions) (AED Millions) 50000 5000 4 ,7 3 1 4 1,6 9 0 40000 4000 3 2 ,2 0 5 30000 3000 20000 13 ,2 14 1,6 9 1 1,6 5 5 2000 6 ,6 3 8 9 ,17 5 10000 5 17 676 100
Slide 52: Strong Record of Value Creation
Strong Record of Value Creation Return on Assets Return on Equity 25% 30% 28% 2 1% 20% 25% 23% 23% 17 % 20% 15 % 20% 18 % 15% 14 % 12 % 15% 9% 11% 10% 8% 9% 10% 5% 5% 0% 0% 2002 2003 2004 2005 2006 2007 3M 2002 2003 2004 2005 2006 2007 3M 2008 2008
Slide 53: FY 2008 Guidance
FY 2008 Guidance • UAE property development business to continue to grow at 2007 levels • UAE property development gross margins to remain robust and in line with 2007 levels: 40% - to - 50% • Plans to launch an increasing number of international projects with earnings contributions expected by H2 2
Slide 54: Thank You
THANK YOU
Slide 55: Appendix
Appendix
Slide 56: Q1 2008 Financial Performance (AED millions)
Q1 2008 Financial Performance (AED millions) Q108 Q407 % Q107 % Revenue 3,961 5,141 (23%) 3,969 - Gross Profit 1,930 1,845 5% 1,962 (2%) SG&A (626) (583) 7% (472) 33% Other Income 216 222 (3%) 210 3% Associates 138 234 (41%) 27 411% Income Tax (1) 2 (150%) (8) (88%) Minority Interest (2) 16 (113%) 2
Slide 57: Business Highlights
Business Highlights 2007 Sales Status – Main International Q407 Units Q407 Units FY07 Units FY07 Units Releases: Released Sold Released Sold Emaar the Economic City (Saudi Arabia) 116 109 540 433 Jeddah Gate (Saudi Arabia) 190 91 190 91 Uptown Cairo and Marassi (Egypt) 917 605 1,367 925 The Eighth G
Slide 58: Experienced & Highly Qualified Management Team
Experienced & Highly Qualified Management Team Board of Directors Chairman: Mohamed Ali Alabbar Vice Chairman: Hussain Al Qemzi Ayman Hamdy Company Secretary & Director Legal VK Gomber Group CEO Low Ping Ahmad Thani Issam Galadari Alex Andarakis Arif Amiri Tom Bartridge Yin Cheng Other Al Matrooshi
Slide 59: Group Structure
Group Structure EMAAR GROUP PJSC EMAAR DUBAI EMAAR EMAAR Property INTERNATIONAL INVESTMENT MALLS EDUCATION Development KSA - EEC Jordan-Dead Sea 100% 100% Projects - 100% 31% 37% Turner Int’l ME 50% HOSPITALITY HEALTHCARE DUBAI BANK KSA - EME Turkey 100% 100% 30% JV with Bawadi 61% 60% Hamptons 50%