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

Dar Al Arkan Real Estate Development — Q4 2020 Earnings Presentation

26 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2021

  1. Slide 1: Investor Presentation Q4 2020

    Investor Presentation Q4 2020 daralarkan.com

  2. Slide 2: Table of Contents

    Table of Contents Page No. 1. Macro Economic Overview & KSA Real Estate Market 3 2. Key Business Indicators Overview 8 3. Financial Performance Overview 11 4. Overview of Assets Portfolio 16 5. Appendix 21 2

  3. Slide 3: Macro Economic Overview & KSA Real Estate Market

    1 | Macro Economic Overview & KSA Real Estate Market 3

  4. Slide 4: The economic outlook is clouded by massive uncertainty

    Macroeconomic Overview The economic outlook is clouded by massive uncertainty! Average Brent Oil Prices GDP to Recover in 2021 Deficit to Expand in 2020 80 4.0% 0% 71.1 2018 2019 2020E 2021F 2022F 2023F 64.4 3.5% 62.7 3.0% 3.4% -2% -3.0% -0.4% 3.2% 60 54.3 2.4% -4.5% 43.6 2.0% -4% -5.9% 42.0 -5.1% 4

  5. Slide 5: Long-term fundamentals of the market remain intact

    KSA Real Estate Sector Overview However, the long-term fundamentals of the market remain intact Positive Demographic Trends Supply Shortages Government Support KSA Total Population (Age/Gender) Total population 34 million  Population growth of 2.5% per year.  Chronic under supply of residential ho

  6. Slide 6: Strong rebound in 4Q 20 ended 2020 4% below 2019

    KSA Real Estate Sector Overview A Strong rebound in 4Q 20 ended 2020 a respectable 4% below 2019 and still 21% ahead of 2018 450 410 380 360 321 140.1 122.5 249 270 224 110.1 209 166 166 159 180 126 79.7 99.1 131 71.1 63.7 270.0 38.9 43.7 257.2 38.0 90 56.1 210.7 144.5 149.8 137.6 126.9 102.1 93.4 1

  7. Slide 7: Real Estate Price Index +0.5% for 2020

    KSA Real Estate Sector Overview The Real Estate Price Index was +0.5% for 2020 and sequentially 4Q 20 returned into positive territory KSA Real Estate Price Index (YoY) KSA Real Estate Price Index (QoQ) 1.5% 1.2% 1.0% 0.9% 1.2% 0.4% 0.3% -0.4% 0.1% -0.4% -0.1% 0.0% -0.6% 0.9% 0.7% 0.5% 0.5% 0.6% -1.

  8. Slide 8: Key Business Indicators Overview

    2 | Key Business Indicators Overview

  9. Slide 9: 2020 – Key Business Indicators

    2020 – Key Business Indicators Investment In Revenues -44% EBITDA -15% Development Properties -53% SAR 1,945 mn SAR 720 mn SAR 2,495 mn (2019 : SAR 3,492 mn) (2019 : SAR 845 mn) (2019 : SAR 5,355 m) Gross Debt/ Cash And Bank Book Value Per Share Capitalization SAR 4,932 mn 35% SAR 17.6 (2019 : SAR 3

  10. Slide 10: Dar Al Arkan Real Estate Assets

    Dar Al Arkan Real Estate Assets  DAAR’s Real Estate assets portfolio at cost is SAR 20.1 bn.  DAAR has a strong pipeline of projects across the Kingdom and Europe totaling 12.9 mn sqm. Real Estate Properties 57% Break up - SAR bn 33% Investments in Juman* Lands, 13.9 Shams Ar Riyadh Project Lands

  11. Slide 11: Financial Performance Overview

    3 | Financial Overview Performance 11

  12. Slide 12: Financial Performance – 2020 Profitability

    Financial Performance – 2020 Profitability Yearly Revenues (SAR mn) Gross Profit (SAR mn) & Margin (%) 7,000 6,412 1,400 44% 24% 16% 50% 42% 1,114 1,057 6,000 136 1,200 24% 4,735 983 35% 40% 5,000 3,492 1,000 78 792 66 824 150 1,945 800 67 675 30% 4,000 2,211 6,276 72 3,000 142 600 97 20% 1,870 87 2

  13. Slide 13: Financial Performance – Q4 2020 Profitability

    Financial Performance – Q4 2020 Profitability Quarterly Revenues (SAR mn) Gross Profit (SAR mn) & Margin (%) 1,200 350 28% 41% 40% 45% 846 899 25% 27% 34% 1,000 824 928 841 19% 22% 251 280 18% 36% 593 213 800 36 37 202 197 35 34 34 464 210 27% 152 159 26 160 156 162 600 391 496 37 25 23 23 892 862 1

  14. Slide 14: Financial Performance – 2020 Cash Flow

    Financial Performance – 2020 Cash Flow Cash Flow – 2020 (SAR mn) Income / Sources of Cash Uses of Cash / Expenses 9,000 307 411 629 7,500 2,883 2,495 6,000 4 0.5 1,945 4,500 3,000 4,932 3,950 1,500 - Starting Cash Revenue New Debt Working Debt Opex Investment in Investment in Maintenance Ending Cash

  15. Slide 15: Financial Performance – 2020 Debt

    Financial Performance – 2020 Debt Gross Debt Vs Net Debt (SAR mn) Debt* / Capitalization 12,000 40% 10,304 35% 29% 9,000 7,832 30% 26% 26% 26% 23% 6,293 5,280 6,480 6,663 4,932 6,000 1,001 3,950 20% 582 3,160 22% 21% 4,903 18% 3,000 5,292 5,372 10% 14% 15% 4,698 3,882 3,320 1,760 7% 0 0% 2015 2016 2

  16. Slide 16: Overview of Assets Portfolio

    4 | Overview of Assets Portfolio

  17. Slide 17: Shams Ar Riyadh – Key Facts

    Residential & Commercial Development Projects Shams Ar Riyadh – Key Facts Location - Situated in the Al-Ammariyah district (King Khalid Road), part of the growing northwest corridor of Riyadh, Shams Ar Riyadh is close to the heart of the city and is located just 19 km from KKI Airport and 9 km from

  18. Slide 18: Residential & Commercial Development Projects

    Residential & Commercial Development Projects Bosnia Projects Jeddah Projects Eastern Province Projects I Love Florence, Dubai - The site is situated located in Ravne, - The site is situated 12 kms from CBD - The project is located in the Eastern - The I Love Florence Tower project is Vareš, 38 km o

  19. Slide 19: Portfolio Summary – Completed Residential Properties

    Portfolio Summary – Completed Residential Properties Parisiana South Parisiana Living Naeem Eljiwar - Located in Riyadh city and easily - Located in Riyadh city and easily - Located within the boundary of accessed through King Fahad accessed through King Fahad the Prophet’s Mosque featuring Road and

  20. Slide 20: Leasing Properties Portfolio

    Leasing Properties Portfolio Al-Qasr Mall, Riyadh Land Area 61,949 m² Built up Area 220,202m² Gross Leasable Area 78,958 m² No. of floors 3 Leasable Floors plus two parking Parking 1,579 Parking Spaces Latest Activity:  91% occupancy achieved  Cinema multiplex with 15 screens opened in 2019.  Bow

  21. Slide 21: Appendix

    DAR AL ARIKAN uL_<yXl jl> 5 Appendix

  22. Slide 22: Appendix I – Statement of Profit or Loss

    Appendix I – Statement of Profit or Loss SAR in 000s FY 2018 FY 2019 Q4 2019 Q4 2020 2020 Revenue 6,412,265 3,491,856 840,922 496,255 1,944,854 Cost of revenue (5,355,114) (2,667,416) (628,050) (299,323) (1,270,204) Gross profit 1,057,151 824,440 212,872 196,932 674,650 % 16.5% 23.6% 25.3% 39.7% 34.

  23. Slide 23: Appendix II – Statement of Financial Position

    Appendix II – Statement of Financial Position SAR in 000s FY 2018 FY 2019 FY 2020 Investment properties, net 1,693,141 1,651,357 1,519,116 Long-term development properties 14,148,262 16,895,604 18,246,583 Property and equipment, net 83,085 79,765 72,180 Investment in associates and joint ventures 82

  24. Slide 24: Appendix III – Statement of Cash Flows

    Appendix III – Statement of Cash Flows SAR in 000s FY 2018 FY 2019 FY 2020 Profit before Zakat 521,855 312,389 19,379 Adjustments for: Depreciation & Amortization 78,355 55,653 56,237 Provision for expected credit losses 0 2,000 2,516 End of service indemnities 4,122 4,313 3,884 Finance costs 511,65

  25. Slide 25: Disclaimer

    Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE OR himself independently based solely on the prospectus in relation to such securities DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, (including any supplement thereto) available when orders are confirmed before taking JAPAN

  26. Slide 26: Thank you

    Investor Relations Riyadh – Saudi Arabia Thank you Tel: +966 11 206 9888 Ext:1670 ir@alarkan.com

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