Al Dar Properties · ADX:ALDAR
Al Dar Properties — Deutsche Bank CEEMEA Conference 2015
36 slides from Al Dar Properties's conference presentation, January 2015
Slide 1: Aldar Investor Presentation - Deutsche Bank CEEMEA conference
Aldar Investor Presentation Deutsche Bank CEEMEA conference January 2015
Slide 2: Table of Contents
Table of Contents Aldar Financial Results Q3 2014 Aldar at a Glance Business Overview Financial Overview Closing Remarks Appendix 1: Operating Environment Appendix 2: Management Team, Land Bank & Strategy 1
Slide 3: Key Highlights Q3 2014
Key Highlights Q3 2014 Summary of Results Net profit of AED 584 million for the quarter, up 41% (Q3 2014: AED 413 million), boosted by growth in profitability of recurring revenue assets and Yas Mall valuation following its completion Revenue of AED1.37bn in Q3 2014, up 17% compared to AED1.17bn
Slide 4: Profit and Loss
Profit and Loss Net profit up 41%; EPS of 7 fils per share YTD Sep YTD Sep AED millions Q3 2014 Q3 2013 Remarks 2014 2013 Revenue mainly driven by the sale of B2 Tower, handover of Revenues 1,368 1,168 Gate units and increasing recurring revenue streams 5,281 4,055 Direct costs (1,014) (651) Lower g
Slide 5: Segmental Performance
Segmental Performance Recurring revenue assets driving profitability 1,000.0 904 3,506 4,000.0 Segmental Revenue Performance AED Millions AED Millions 800.0 YTD Sep 2014 2,720 3,000.0 609 600.0 378 2,000.0 400.0 317 226 148 123 172 1,000.0 200.0 96 92 23 21 0.0 0.0 Investment Properties Hotels Schoo
Slide 6: Balance Sheet
04 Balance Sheet Continued strengthening of balance sheet As at 30 Sep As at 31 Dec AED millions Remarks 2014 2013 Property, plant and equipment 3,088 3,257 Mainly relates to depreciation charge, partially offset by PP&E additions Key movements include capex related to Yas Mall, Yas Mall valuation f
Slide 7: Balance Sheet
Balance Sheet Continued strengthening of our balance sheet As at 30 Sep As at 31 Dec AED millions Remarks 2014 2013 Property, plant and equipment 3,088 3,257 Mainly relates to depreciation charge, partially offset by PP&E additions Key movements include capex related to Yas Mall, Yas Mall valuation
Slide 8: Cash flow statement
Cash flow statement AED millions Q3 YTD 2014 Q3 YTD 2013 Remarks Cash at the beginning of the period 2,078 1,009 (unrestricted cash) Net cash from operating activities 4,989 4,600 mainly attributable to collections of receivables mainly attributable to movement in short term deposits and proceeds Ne
Slide 9: Operational Highlights Q3 2014
Operational Highlights Q3 2014 Development Projects Investment Properties Residential: • The Gate and Arc Tower now fully leased, one year ahead of schedule, with occupancy expected to stabilise over Residential: the coming months • The Gate: Total 1,770 units now handed over including • Leasing acr
Slide 10: Table of Contents
Table of Contents Aldar Financial Results Q3 2014 Aldar at a Glance Business Overview Financial Overview Closing Remarks Appendix 1: Operating Environment Appendix 2: Management Team, Land Bank & Strategy 9
Slide 11: Aldar at a Glance
Aldar at a Glance Overview of Aldar Ownership Overview Aldar Properties PJSC (“Aldar” or the “Group”), established in 2005, is the The Government of Abu Dhabi and its related entities are the Group’s leading listed property developer in Abu Dhabi (in terms of total assets and largest shareholders,
Slide 12: Corporate Governance
Corporate Governance Board of Directors H.E. Abubaker Seddiq Al Khoori – Chairman Executive Director at the office of the Vice Chairman (Executive Council) Currently Vice Chairman of Waha Capital, Vice Chairman of Senaat, Board Member of Abu Dhabi Airports Company and Abu Dhabi Ports Company H.E
Slide 13: Key Strengths
Key Strengths Dominant Real Estate Player in Abu Dhabi and Developer of Choice for the Emirate Government of Abu Dhabi Robust Business Strategy Remains Focused on Increasing Recurring a Supportive Shareholder and a Income and Maximizing Value of Strong Partner Development Business Disciplined and Ma
Slide 14: Table of Contents
Table of Contents Aldar Financial Results Q3 2014 Aldar at a Glance Business Overview Financial Overview Closing Remarks Appendix 1: Operating Environment Appendix 2: Management Team, Land Bank & Strategy 13
Slide 15: Relationship with the Government of Abu Dhabi
Relationship with the Government of Abu Dhabi Strategic Relationship with the Government of Abu Dhabi History of Financial Government Interaction Aldar was founded in 2005 and has enjoyed a strong relationship with the Aldar has a long history of interaction with the Government of Abu Dhabi, Governm
Slide 16: Business Segments Snapshot
Business Segments Snapshot Aldar’s Business Overview Aldar’s business comprises three core activities and seven reporting segments that provide a diversity of income streams – the Group’s focus is on growing its recurring revenue base 1. Asset Management 2. Real Estate Development 3. Adjacent Busine
Slide 17: Overview of Aldar's Operating Assets
Overview of Aldar’s Operating Assets Recurring Revenue Streams The Group’s income generating Operating Assets comprise residential, commercial and retail units as well as hotels, schools, operative villages and leisure facilities that generated in aggregate AED 1,549 mn in the first nine months of 2
Slide 18: Summary of Key Operating Assets
Summary of Key Operating Assets Yas Mall The Gate Towers al rayyana Yas Mall is a destination mall with a High rise development comprising Low rise development of 33 buildings strategic location – will be the largest Description three 65-storey towers capped with a Description adjacent to a golf cou
Slide 19: Summary of New Developments
Summary of New Developments Overview of Aldar’s New Developments In line with the Group’s business strategy of selective development, Aldar recently announced three new projects Al Hadeel Ansam (Phase 1) Nareel Island 233 units comprising a mix of studio, Residential cluster comprising 4 1-bed, 2-be
Slide 20: Overview of the Group's Land Bank
Overview of the Group’s Land Bank Aldar’s Land Bank The Group’s extensive undeveloped land bank covers 77 mn sqm in Abu Dhabi – the majority of land was granted by the Government and 90% is classified as “investment zones” 1 which permits GCC nationals to purchase property – we provide an overview o
Slide 21: Table of Contents
Table of Contents Aldar Financial Results Q3 2014 Aldar at a Glance Business Overview Financial Overview Closing Remarks Appendix 1: Operating Environment Appendix 2: Management Team, Land Bank & Strategy
Slide 22: Income & Cash Generation
Income & Cash Generation Revenue Overview (AED mn) Revenue Breakdown Aldar Sorouh Aldar (combined entity) X Group Total Aldar expects the contribution of recurring revenue to increase 9M Ended 30 Sep 14,435 FY2012 FY2013 2014 3,032 10,530 88% 66% 34% 66% 34% 3,788 12% 5,082 5,380 5,281 11,403 4,055
Slide 23: Balance Sheet Overview
Balance Sheet Overview Asset Breakdown (9M-2014) Overview of Key Balance Sheet Items (9M-2014) Development Work AED 10.2 bn Investment in Progress Properties AED 9.6 bn 7% 25% Cash Balance Others 4.0 3% Property, Plant & Total Debt Trade & Other Equipment Receivables 8% Government 27% Cash and Bank
Slide 24: Leverage Overview
Leverage Overview Debt & Assets Overview (AED bn)1 Capitalization Overview Total Debt Total Assets Total Debt to Total Assets Total Equity (AED bn) Total Debt to Total Equity (x) 2.9x 49.0% 45.6% 1.6x 1.5x 37.3% 33.7% 1.0x 31.3% 0.8x 0.5x 25.0% 38.0 36.5 80.0 29.9 61.0 20.2 54.3 15.6 46.3 13.7 43.7
Slide 25: Capital Expenditure & Funding Strategy
Capital Expenditure & Funding Strategy Capital Commitments & Refinancing Capital Commitments (AED mn) Debt Maturity Profile (AED bn) 10 Debt Securities Bank Borrowings The below capital commitments are expected to be incurred over a five year period 9 8.0 8 7 Project under Developments 320 6 5 5.3 R
Slide 26: Table of Contents
Table of Contents Aldar Financial Results Q3 2014 Aldar at a Glance Business Overview Financial Overview Closing Remarks Appendix 1: Operating Environment Appendix 2: Management Team, Land Bank & Strategy 25
Slide 27: Key Highlights
Key Highlights Aldar has a clear strategy Our four pillars of profit, partners, products and people clearly focus us on building stable predictable cash flows from our growing investment portfolio, deleveraging and de-risking our balance sheet and continuing to deliver on what we do best – providing
Slide 28: Table of Contents
Table of Contents Aldar Financial Results Q3 2014 Aldar at a Glance Business Overview Financial Overview Closing Remarks Appendix 1: Operating Environment Appendix 2: Management Team, Land Bank & Strategy 27
Slide 29: Abu Dhabi's Real Estate Sector
Abu Dhabi’s Real Estate Sector Government Funding1 Government Initiatives to Strengthen the Real Estate Sector2 1 2 The Government has pledged AED 330 billion to help fund capital Tightening Controls & Stimulating Demand & Market projects up to 2017 – with an aim to invest only in projects that will
Slide 30: Abu Dhabi's Real Estate Sector (cont'd)
Abu Dhabi’s Real Estate Sector (cont’d) Residential Market Recovery1 Residential Performance – Sales Prices Residential Performance – Rents Abu Dhabi residential sale 4,689 4,357 46 prices have benefitted from 42 41 4,003 39 38 the unrest in the wider 3,664 44 38 37 3,485 35 region as well as impr
Slide 31: Abu Dhabi's Macroeconomic Overview
Abu Dhabi’s Macroeconomic Overview Abu Dhabi has one the Country Overview Abu Dhabi Economic Summary highest GDP per capita as a result of its substantial oil Key Economic Trends: 2010A 2011A 2012A 2013A 2014E reserves Abu Dhabi is one of the largest hydrocarbon producers globally on per capita
Slide 32: Table of Contents
Table of Contents Aldar Financial Results Q2 2014 Aldar at a Glance Business Overview Financial Overview Closing Remarks Appendix 1: Operating Environment Appendix 2: Management Team, Land Bank & Strategy 31
Slide 33: Experienced Management Team
Experienced Management Team Mohamed Al Mubarak (Chief Executive Officer) Mohammed Khalifa Al Mubarak is Chief Executive Officer. He was previously Deputy Chief Executive and Chief Portfolio Management Officer at Aldar Mohammed has been integral to the development of Aldar’s operational business
Slide 34: Snapshot of Aldar's Land Bank
Snapshot of Aldar’s Land Bank Aldar’s Land Bank Investment Zones Yas Island Al Raha Beach Seih Sdeirah Shams Abu Dhabi Lulu Island1 • 7.2mn sqm of freehold • 3.7mn sqm of freehold • 52.2mn sqm of freehold • 1.8mn sqm of freehold • 5.0mn sqm of freehold plot area available for plot area available for
Slide 35: Business Strategy
Business Strategy Four Activities PROFIT PARTNERS PRODUCTS PEOPLE Focus on commercially-oriented Be the partner of choice to our Focus on asset management, Recruit & retain – become employer of development & optimise capital use customers including the Government development & adjacent busin
Slide 36: Investment Process
Investment Process Robust Investment Control Process Aldar’s Investment Control Process is based on (i) taking go/no-go decisions at the start and end of each gateway, (ii) following a staged approach to the process and (iii) delivering an output at the end of each stage to pass the relevant gateway
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