Dar Al Arkan Real Estate Development Co. · TADAWUL:4300

Dar Al Arkan Real Estate Development — Q3 2017 Earnings Presentation

22 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2017

  1. Slide 1: Investor Presentation Q3, 2017

    Investor Presentation Q3, 2017 www.daralarkan.com

  2. Slide 2: Table of Contents

    Table of Contents Content Page No. 1. Macro & Micro Economic Overview 3 1.1 Macroeconomic Overview 4 1.2 KSA Real Estate Sector Overview 5 1.3 Government initiatives update 7 2. DAAR’s Overview & Strategic Positioning 8 2.1 DAAR’s Overview 9 2.2 Financial Performance 10 2.3 Land Development 14 2.4 R

  3. Slide 3: 1. Macro & Micro Economic Overview

    1. Macro & Micro Economic Overview

  4. Slide 4: 1.1 Macroeconomic Overview

    1.1 Macroeconomic Overview National Transformation Plan NTP (2020) aims to rebalance and diversify the economy through private sector inclusion. Stabilizing oil prices and NTP to spur the economic growth in 2017 and beyond Oil Price Recovery and Economic Declining Deficit Projected in Over 7% Rise i

  5. Slide 5: 1.2 KSA Real Estate Sector Overview

    1.2 KSA Real Estate Sector Overview Commercial Real Estate Transactions Value Average Residential Land Prices SAR/sqm 40 Billion-SAR 50% SAR/Sqm 500 20% 35 40% 33% 36% 28% 450 12% 30% 10% 30 400 0% 21% 20% 4% 350 3% 25 0% 10% 300 -3% -5% 20 0% -8% 250 -10% -12% 15 -10% 200 -20% -20% -20% -20% 150 10

  6. Slide 6: 1.2 KSA Real Estate Sector Overview

    1.2 KSA Real Estate Sector Overview Commercial RE Price Index QoQ Commercial RE Price Index YoY 1.0% 0.2% 0.0% 0.0% -2.0% -1.0% -1.0% -4.0% -1.8% -2.0% -2.2% -2.0% -2.5% -6.0% -7.3% -6.9% -7.1% -3.0% -8.3% -8.3% -3.3% -8.0% -3.0% -8.9% -4.1% -4.0% -10.0% -10.9% -11.7% -12.3% -12.0% -5.0% Q3-15 Q4-15

  7. Slide 7: 1.3 Government Initiatives Update

    1.3 Government Initiatives Update MoH REDF Number of approved loans to be funded by Banks Number of announced products in main cities 8,000 3,375 60,000 54,918 53,900 7,000 245 3,187 50,000 6,000 5,218 5,000 40,000 34,600 4,000 30,000 3,000 6,140 2,432 5,466 20,000 15,400 2,000 666 1,082 3,503 6,536

  8. Slide 8: 2. DAAR's Overview & Strategic Positioning

    2. DAAR’s Overview & Strategic Positioning

  9. Slide 9: 2.1 DAAR's Overview

    2.1 DAAR’s Overview Dar Al-Arkan is the largest listed real estate developer in the Kingdom of Saudi Arabia, with assets of over SAR 26.2 bn (US$ 6.98 bn), continuously diversifying across the real estate sector. Overview Current Status Land Development  Our Aim is to acquire and develop urban land

  10. Slide 10: 2.2 Financial Performance – Q3, 2017 Profitability

    2.2 Financial Performance – Q3, 2017 Profitability Historical Quarter Revenue (SAR mn) 1,500 1,483 1,200 900 541 618 600 419 435 408 410 456 360 300 - Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17  Revenue in Q3 of SAR 1,483 m is the highest recorded in the last 8 quarters even though marke

  11. Slide 11: 2.2 Financial Performance – Q3, 2017 Profitability

    2.2 Financial Performance – Q3, 2017 Profitability Recurring Revenue (SAR mn) Gross Profit (SAR mn) & Margin (%) 50 45% 43% 44% 45% 50% 39 400 40% 42% 38% 353 40 37 37 37 36 36 35% 40% 35 35 35 300 242 245 30 24% 30% 181 192 185 200 170 160 20 136 20% 100 10% 10 0 0 0% Q3-15 Q4-15 Q1-16 Q2-16 Q3-16

  12. Slide 12: 2.2 Financial Performance – Q3, 2017 Cash Flow

    2.2 Financial Performance – Q3, 2017 Cash Flow DAAR continues to generate cash from operations, reduce net debt and restrict investments to land development Cash Flow Q3, 2017 (SAR mn) 5,000 1,483 58 920 4,000 220 3,000 2,000 2,674 2,959 1,000 - Starting Cash Revenue Debt Repayment OPEX and Working

  13. Slide 13: 2.2 Financial Performance – Q3, 2017 Funding

    2.2 Financial Performance – Q3, 2017 Funding Gross Debt / Capitalization Debt Profile (SAR mn) 50% Murabaha, 40% 1,876 , 27% 30% 30% 26% 26% 27% 27% 25% 25% 22% 22% 20% 10% Sukuk, 5,063 , 0% 73% 2014 2015 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17  Gross debt to capitalization remains at 27% as no n

  14. Slide 14: 2.3 Land Development

    2.3 Land Development Geographic Split of Dar Al-Arkan’s Land Bank Land Bank (as a % of total Asset) Others, 1% Makkah, 22% Land Jeddah, Value Riyadh, 65% 51% 12% Book Value of Total Land Bank: SAR 13.3 bn Strategy Land Revenue & Gross Margin (SAR Millions)  DAAR has a diversified land portfolio acr

  15. Slide 15: 2.4 Residential & Commercial Development - Sales

    2.4 Residential & Commercial Development - Sales Plan underway to open 3 sales offices in Riyadh and 1 in Jeddah to tackle current sales of units and prepare for the launch of the other master plans. Parisiana South Parisiana Living Naeem Eljiwar Al Maseef Complex - Located in Riyadh city and - Loca

  16. Slide 16: 2.4 Residential & Commercial Development – Projects

    2.4 Residential & Commercial Development –Projects Shams Al Riyadh Juman Shams Al Arous Total Area (sqm) 8.2 m Total net area (sq m) 496K Total area (sqm) 3.2 m % Infrastructure completion 49% DAAR’s Holdings of the Project’s 18% Residential area to be sold (sqm) 299K SPV  Shams Al Riyadh - is one

  17. Slide 17: 2.5 Property Management & Leasing

    2.5 Property Management & Leasing Al-Qasr Community Al-Qasr Mall Built-up Area (sqm) 1.2mn Built-up Area (sqm) 220k Residence Capacity 13,000 GLA (sqm) 79k Apartments 2,350 # Leasable Units 499 Villas 66 # Floors 4 Commercial space (sqm) 69,716 Parking Capacity 1,579 cars Occupancy Ratio % 49% Leasi

  18. Slide 18: 3. Appendix

    DAR ALA RIXAN uL—<jXI jl> 3. Appendix

  19. Slide 19: 3.1 Appendix I – Income Statement

    3.1 Appendix I – Income Statement SR in 000s FY 2015 FY 2016 9 Months 2016 9 Months 2017 Q3, 2016 Q3, 2017 Revenue 2,211,349 1,870,229 1,459,735 2,299,564 617,571 1,482,741 Cost of revenue (1,228,117) (1,078,286) (838,249) (1,650,923) (372,376) (1,129,931) Gross profit 983,232 791,943 621,486 648,64

  20. Slide 20: 3.2 Appendix II – Balance Sheet

    3.2 Appendix II – Balance Sheet SR in 000s FY 2015 FY 2016 Q3, 2016 Q3, 2017 Cash 1,001,061 582,087 1,577,456 2,959,386 Accounts Receivables 1,948,687 1,839,470 1,717,592 2,327,881 Pre-paid Expenses 974,809 743,508 691,964 819,389 Project in Progress-ST - - - 43,560 Developed Land -ST 437,185 317,32

  21. Slide 21: Disclaimer

    Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES. THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS P

  22. Slide 22: Thank you

    Investor Relations Riyadh – Saudi Arabia Thank you Tel: +966 11 206 9888 ir@alarkan.com

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