Emaar, The Economic City · TADAWUL:4220
Emaar, The Economic City — Q3 2016 Earnings Presentation
42 slides from Emaar, The Economic City's earnings presentation, 2016
Slide 1: EEC Q3 Investor Presentation
EEC Q3 Investor Presentation
Slide 2: Disclaimer
Page 1 DISCLAIMER • This presentation (Presentation) has been prepared by Emaar the Economic City (EEC) and/or its subsidiaries based on information available to it internally and third party sources. This Presentation does not purport to contain all the information that a prospective investor may r
Slide 3: Our Vision: A New Global Hub
Page 2 Our Vision A New Global Hub Establish King Abdullah Economic City (KAEC) as a strong enabler of socio-economic development in the Kingdom of Saudi Arabia.
Slide 4: KAEC Master Plan
Page 3 KAEC Master Plan
Slide 5: KAEC Master Plan: Project Overview
Page 4 Project Overview KAEC is a greenfield city development roughly the size of Washington DC. Its objective is to help with Saudi Arabia’s acute housing demand and support economic diversification. KAEC’s strategic location on the Red Sea puts it close to international maritime routes and provide
Slide 6: KAEC Business Model
Page 5 CITY DRIVERS • Port • Industrial Valley • Haramain Station Economic Funding • Bonded Zone Impact • Land Bridge Sources • MBSC (Powered by Babson College) Realization of CITY DEVELOPMENT Economic city Shareholders & ECONOMIC GROWTH vision Job Creation INFRA-STRUCTURE HOUSING NEEDS Equity • Roa
Slide 7: KAEC Developments
Page 6 KAEC Developments: • KAP • MBSC • TWA • FMC • Juman Park • Royal Greens • Juman Karting • Esmeralda Sports Complex
Slide 8: Development Phases
Page 7 DEVELOPMENT PHASES Completed Development Under Development
Slide 9: King Abdullah Port
Page 8 Current On Completion King Abdullah Port For more info, please visit KAP’s website: https://www.kingabdullahport.com.sa/
Slide 10: MBSC higher education institution
Page 9 • MBSC is a new private, higher education institution for both men and women • It has been established through an International partnership between Emaar The Economic City, Babson Global (a wholly-owned subsidiary of Babson College, USA), Lockheed Martin under the umbrella of the Economic Off
Slide 11: Fully operational since Q3 2014 school
Page 10 Fully operational since Q3 - 2014 Grades Offered: Nursery up to Grade 12 Current Enrolment: Over 500 students For more info, please visit KAEC’s website: http://www.kaec.net/live/
Slide 12: Fakeeh Medical Center
Page 11 • Operated by Dr. Soliman Fakeeh Hospital • In operation since September 2016 • FMC offers specialty clinics such OB/GYN, Ophthalmology, Orthopedic, and Dental Services; as well as Laboratory and Diagnostic Imaging services For more info, please visit KAEC’s website: http://www.kaec.net/live
Slide 13: Bay La Sun hotel
Page 12 WORLD CLASS EDUCATION Recipient of 2016 World Travel’s Saudi Arabia’s Leading Business & Leisure Hotel Award • Premium 5-star Business & Leisure hotel • 195 rooms and 6 suits • Operated by Alkhozama • In operation since 2013 For more info, please visit Bay La Sun hotel’s website: http://www.
Slide 14: Juman Park
• Juman Park is situated alongside the Bay La Sun Hotel and Marina Page 13 • With around 70,000 sqm of open space that includes walkways, running tracks, cycling tracks, a mini golf course, games area and an amphitheater • The park is populated with art sculptures, refreshment stops and adventure pl
Slide 15: Royal Greens golf course
Page 14 AN EXCLUSIVE WORLD-CLASS COURSE To be launched in the next few months • 18-hole championship golf course in Al-Murooj District • Golf clubhouse sized 9,000 sqm that consists of health clubs, BBQ grills, juice bars, and conference rooms For more info, please visit Royal Greens’ s website: htt
Slide 16: Juman Karting track
Page 15 AN EXCLUSIVE WORLD-CLASS COURSE Our newly laid track is 700m long and 7 to 10 m wide; it consists of a variety of fast straights, long fast corners and a good mixture of slower corners (9 in total) to really test out every driver that goes on our track, from the beginner right through to the
Slide 17: Esmeralda Sports Complex
Page 16 AN EXCLUSIVE WORLD-CLASS COURSE • Project Area: 56,000 SQM • Total Built up Area: 14,700 SQM • Actual progress: around 60% • To be launched in Q1-2017 • The Sports Club will include Indoor Youth Soccer, Cricket, and multipurpose courts for Basketball, Badminton, Tennis, Squash and Volleyball
Slide 18: Projects Under Development
Page 17 Projects Under Development: • Hejaz District • Play District
Slide 19: Hejaz District & High Speed Train
Page 18 HEJAZ DISTRICT & HIGH SPEED TRAIN
Slide 20: Hejaz District & High Speed Train
Page 19 HEJAZ DISTRICT & HIGH SPEED TRAIN • Strategically located within the Western Region • Located between the two holy cities, Makkah and Madinah • Connecting 8.5 million inhabitants • Completion date*: Q4 2017 – Q1 2018 55 minutes 2.5 m residents 30 minutes 1.3 m residents 4.5 m Residents KAEC
Slide 21: Page 20
Page 20
Slide 22: AN EXCLUSIVE WORLD-CLASS COURSE
Page 21 AN EXCLUSIVE WORLD-CLASS COURSE
Slide 23: The Play District
THE PLAY DISTRICT a THE PLAY DISTRICT Jim — Carer ee = KING ABDULLAH. ECONOMIC CTY
Slide 24: AN EXCLUSIVE WORLD-CLASS COURSE
Page 23 AN EXCLUSIVE WORLD-CLASS COURSE
Slide 25: KAEC Financials, Segment Breakdown, and Stock Performance
Page 24 KAEC Financials, Segment Breakdown, and Stock Performance
Slide 26: EEC's Financial Growth
Page 25 More Than 95 Global & Local Tenants in KAEC Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 169 230 332 386 132 85 176 158 100 52 80 8.1 22 -31 -81 Revenue Gross Profit Net Income (SARS M) EEC’s Order Intake and Revenue YTD 2016 % Breakdown of Revenue YTD 2016 RD Financial 60% Order Intake Revenue G
Slide 27: Sales Breakdown PJTD vs YTD
Page 26 Total Area (M2 ‘000) Number of Units (Full Value) PJTD YTD PJTD YTD 4,361 22,373 2,744 11,609 8,763 1,567 407 522 1767 234 64 63 316 - 443 111 49 4 1 R.Vertical R.Land IV Land Sales PDC Land Total Area R.Vertical R.Land IV Land PDC Land Total Sales Sales Units Sales Value (SAR M) Revenue (SA
Slide 28: EEC Stock Performance
Page 27 EEC Stock One year chart from November 2015 to November 2016: EEC has out performed Performance both the Saudi Stock Exchange and the Local Real Estate Index Ticker Description: SASEIDX Index: Tadawul all share index SASEREAL Index: Tadawul all share real estate development industries index
Slide 29: KAEC Master Plan Residential Development
Page 28 KAEC Master Plan Residential Development
Slide 30: Residential Development Breakdown
Page 29 RE Vertical Land (excluding Lease) (SAR) 352 137 Sales 307 Residential 112 Revenue Development Breakdown 110 GP YTD -15 Gross September 98% Margin 2016 -5% Total area sold 65,000 SQM 63,000 SQM
Slide 31: Residential Development Game Changers
Page 30 Residential Development Game Changers Strong presales growth at 79.95% CAGR from 2012-2015 driven by: • Competitive prices offering investment upside • Good infrastructure relative to other major cities regionally • Strong demand for affordable housing in Saudi Arabia. Saudi Arabia has a dem
Slide 32: Residential Sales Product
Page 31 Product 2012 2013 2014 2015 Net Order Intake (in million, SAR) 21 9 272 369 Vertical Units 12 6 178 641 Net Order Intake (in million, SAR) 167 673 655 776 Land Units 136 403 819 912 Net Order Intake (in million, SAR) 188 682 927 1,149 Totals Units 148 409 997 1,767 Residential Bench Mark Ana
Slide 33: Residential Sales Summary
Page 32 % Presales % Unsold % Lease (Sold and Reserved) Residential Vertical Sales Summary Residential Land Sales Summary %Sold %Sold %Leased %Unsold TH4 99% 1% 253 Al Talah 1.3 82% 18% 179 Al Talah 5 86% 14% 504 GC2 18% 82% 147 Al Talah 4 91% 9% 410 GC1C Villa 100% 0% 12 BC1 Villa 100% 0% 5 Al Tala
Slide 34: Residential Development Project
Page 33 Total Total Sale Price Per Community Type District Target Income Released Unreleased Sellable Area Construction Progress Status SQM Units Units Al Shurooq Apartment Al Shurooq Affordable 990 450 135,064 4,489 80% Launched Al Waha Apartment Waha Medium Income 388 .- 42,718 5,948 84% Launched
Slide 35: Industrial Valley Sales Summary up to Sep 2016
Page 34 R ESIDENTI KAEC A L S A Plan Master LES S UMMARY Industrial u p to Sep Valley 2016
Slide 36: Major Developments Industrial Valley
Page 35 %IV Breakdown 8% 3%5% IV IA 17% IV IB IV Phase 2 IV Phase 3 16% 51% IV Phase 4 Bonded Zone Major Land Use GLA NLA Developments IV IA 1,500,000 1,316,000 IV IB 2,100,000 1,816,200 IV Phase 2 22,000,000 17,855,000 Industrial IV Phase 3 7,000,000 6,101,000 Valley IV Phase 4 6,440,000* 3,398,000
Slide 37: Industrial Valley Sales and Lease
Page 36 Industrial Leased Total Area Sold Total Area Valley Leased (in Sold (in millions) millions) Industrial Phase IV IA 88% 1.3 Valley Sales and Lease Phase IV IB 69% 1.8 Segment 66% Breakdown Phase IV 2 29% 6.52 10.7 up to 100% September Phase IV 3 E&F 2016 1.2 Phase IV 3 B 60% 0.9 *Rent is coll
Slide 38: Industrial Valley Game Changers
Page 37 Industrial Valley Game Changers • IV has started re-defining its business strategy • Special zones within IV : Bonded Zone, Gas Zone, and warehousing • Broader connectivity through the operational King Abdullah Port along with the Haramain High Speed Railway and the planned Saudi Land Bridge
Slide 39: IV Lease and Sales Summary
Page 38 Millions Sqm IV Lease and Sales Summary
Slide 40: Industrial Valley Year on Year Performance
Page 39 Sales and Lease Revenue & Price Trend Actual Sale Price/SQM (YoY) Actual Lease Price/SQM (YoY) 600 7% 585 18 545 550 40% 22% 500 445 14 450 15 48% 30% 400 350 11 50% 49% 300 300 10 250 7 6 19% 200 200 150 5 100 Industrial 50 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Valley Year o
Slide 41: KAEC Tenants
Page 40 More Than 120 Global & Local Tenants in KAEC KAEC Tenants
Slide 42: Danish Samad, EEC Group Treasurer
Danish Samad EEC Group Treasurer DSamad@kaec.net Tel Direct: +966 12 510 6955 Mobile: +966 54 606 3998 Firas Maad Treasury and Investor Relations FMaad@kaec.net Tel Direct: +966 12 510 6729 Mobile: +966 50 565 3225
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