Emaar, The Economic City · TADAWUL:4220

Emaar, The Economic City — Q4 2015 Earnings Presentation

28 slides from Emaar, The Economic City's earnings presentation, Dec 31, 2015

  1. Slide 1: EEC - Investor Relations Presentation

    EEC - Investor Relations Presentation December 31, 2015 © King Abdullah Economic City 2015 Page 1 © King Abdullah Economic City 2015

  2. Slide 2: Disclaimer

    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 require in

  3. Slide 3: Contents

    CONTENTS • Introduction • Project Overview and EEC Highlights • EEC Financials • Residential Development • Industrial Valley • Commercial Development • EEC Company History Page 2 © King Abdullah Economic City 2015

  4. Slide 4: Our Vision

    OUR VISION To establish King Abdullah Economic City (KAEC) as a great enabler of socio-economic development in the Kingdom of Saudi Arabia. Madinah Mecca

  5. Slide 5: KAEC Master Plan

    KAEC MASTER PLAN Project Overview Hejaz District KAEC is a greenfield city development roughly the Industrial size of Washington DC. Its objective is to help with Valley Saudi Arabia’s Acute housing demand and support economic diversification. KAEC’s Strategic location on the Red Sea puts it close t

  6. Slide 6: KAEC Business Model

    KAEC BUSINESS MODEL Funding CITY DRIVERS Economic Sources • Port • Industrial Valley Impact • Haramain Station • Bonded Zone • Land Bridge • Babson College Shareholders Realization of Equity Economic city vision CITY DEVELOPMENT & ECONOMIC GROWTH Job Creation INFRA-STRUCTURE HOUSING NEEDS • Roads Ne

  7. Slide 7: KAEC Financial Highlights

    KAEC Financial Highlights EEC is an affiliate of Emaar Haramain Properties 11.2BSAR 24M SQM High 30% Market Cap sold out of a total of 131M SQM and 364,000 SQM this year SpeedRail Operating early 2016 ownership stake 17% 9.8% 12.4% 98% Revenue Growth EBIT Growth Net Income Growth Increase in IV Tena

  8. Slide 8: EEC's Financial Growth Quarterly Breakdown

    EEC’s Financial Growth Quarterly Breakdown Net Income of 302.7 M SAR for Fiscal Year 2015 (SARS M) Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q 4 2015 236 169 303 229 386 213 157 147 85 85 176 158 69 50 8.1 Revenue Gross Profit Net Income Presales and Revenue Segment Breakdown % Breakdown of for December 31,20

  9. Slide 9: EEC's Segment Breakdown YTD December 2015

    EEC’s Segment Breakdown YTD December 2015 Residential Financial Industrial Valley Commercial Development 760 Revenue 151 61 480 GP 9.8 123 427 EBITDA 104 1.042 436 Net Profit 102.2 -3.4

  10. Slide 10: Sales Breakdown – PJTD vs. YTD – Dec 2015

    SALES BREAKDOWN – PJTD VS. YTD – DEC 2015 Total Area (M2 ‘000) Number of Units (Full Value) PJTD YTD PJTD YTD 22,223 3,889 2,633 11,609 8,598 1,557 1,202 912 641 1,706 1,028 188 80 459 122 7 46 1 Vertical Land SOL Land IV Land Sales PDC Land Total Area Vertical Land SOL IV Land PDC Total Land Sales

  11. Slide 11: Major Developments - Residential Map

    MAJOR DEVELOPMENTS - RESIDENTIAL MAP Page 21 © King Abdullah Economic City 2015

  12. Slide 12: Residential Development Sales and Lease Breakdown YTD December 2015

    Residential Development Sales and Lease Breakdown YTD December 2015 RE Vertical Land Residential Development Game Changers (SARS) 777 Strong presales growth at 79.95% CAGR from 2012-2014 driven by: 369 Presales • Competitive prices offering investment upside • Good infrastructure relative to other 4

  13. Slide 13: Residential Presales Product Statistics (2012-2015)

    RESIDENTIAL PRESALES Product statistics (2012-2015) Product 2012 2013 2014 2015 Vertical Net Order Intake SAR M 21 9 235 379 Units 12 6 146 729 Land Net Order Intake SAR M 167 673 643 770 Units 136 403 705 1,038 Totals Net Order Intake SAR M 188 682 878 1,149 Units 148 409 851 1,767 Bench Mark Analy

  14. Slide 14: Residential Presales Summary YTD

    RESIDENTIAL PRESALES SUMMARY YTD % Presales % Unsold % Lease Residential Vertical Sales Summary Residential Land Sales Summary Al Waha 26% 74% 144 TH4 98% 2% 253 Al Talah 1.3 74% 26% 179 Al Talah 5 84% 16% 504 GC2 18% 82% 147 Al Talah 4 90% 10% 410 GC1 Villa 92% 8% 12 Al Talah 3 100% 0% 439 BC1 Vill

  15. Slide 15: Residential Development Project Breakdown YTD

    RESIDENTIAL DEVELOPMENT PROJECT BREAKDOWN YTD Total Total Sale Price Per Community District Target Income Released Unreleased Sellable Area Construction Progress Launch Date Presales %Presales SQM Units Units Al Shurooq Al Shurooq Affordable 606 834 135,064 4,489 Near Completion Launched 545 90% Al

  16. Slide 16: Major Developments – Industrial Valley

    MAJOR DEVELOPMENTS – INDUSTRIAL VALLEY IV 4 IV 3 Northern Parcel Land Use GLA NLA %IV Breakdown IV IA 1,500,000 1,316,000 8% 3%5% IV IA IV IB 2,100,000 1,816,200 17% IV IB IV Phase 2 22,000,000 17,855,000 IV Phase 2 IV Phase 3 7,000,000 6,101,000 IV Phase 3 IV Phase 4 6,440,000* 3,398,000 16% 51% IV

  17. Slide 17: Industrial Valley Sales and Lease Segment Breakdown YTD Dec 2015

    Industrial Valley Sales and Lease Segment Breakdown YTD DEC 2015 Industrial Leased Sold NLA Industrial Valley Game Changers Valley • Reoccurring revenue represents roughly 85% 50% of IV revenues from Industrial lease Phase IV IA properties. 1,316,000 • 98% Growth in Tenants from 2013-2014 driven by

  18. Slide 18: Lease & Sales Summary

    Lease & Sales Summary Area Leased Area Sold Non-Leasable Areas Reserved Inventory Phases Launched Phases in Planning 4.6 4.2 3.9 3.9 3.6 3.7 0.4 3.2 3.1 1.5 3.6 2.1 2.0 1.9 3.8 2.9 3.7 2.5 1.4 1.4 1.1 1.2 0.9 1.9 2.0 1.2 0.2 0.4 0.7 0.8 0.6 0.6 0.5 0.1 0.3 0.1 0.1 0.0 0.1 0.1 0.0 Phase 1A Phase 1B P

  19. Slide 19: Industrial Valley Year on Year Performance: Sales and Lease Revenue

    in Millions Industrial Valley- Year on Year Performance Sales and Lease Revenue 2016 2016 Product 2012 2013 2014 2015 Product 2012 2013 2014 2015 Budget Budget Operating Sales Revenue 286 480 219 105 238 15 28 33 47 59 Revenue Sales Revenue (YoY) Operating (YoY) -28.4% 29.8% 52.1% +46.3% 480 59 286

  20. Slide 20: Industrial Valley Year on Year Performance: Order Intake and Price Trend

    in Millions Industrial Valley- Year on Year Performance Order Intake and Price Trend 2016 2016 Product 2012 2013 2014 2015 Product 2012 2013 2014 2015 Budget Budget Sales Price Order Intake 465 1055 634 239 500 202 247 413 490.5 535 (SR/sqm) Lease Price (SR/sqm) 6 7 11 14 14.42 Order Intake (YoY) Sa

  21. Slide 21: Industrial Valley - Existing Tenants

    INDUSTRIAL VALLEY - EXISTING TENANTS Over 110 global and local IV tenants are in KAEC with 34 tenants on the ground FMCG PHARMACEUTICALS PLASTICS CONSTRUCTION LOGISTICS AUTOMOTIVE GENERAL * * * * * * * * * Page 21 © King Abdullah Economic City 2015

  22. Slide 22: Commercial Development

    Commercial Development Bay Views Office Park Brief Description: • Bay View’s is located in the heart of the Bay La Sun district in close proximity to the Bay La Sun Hotel & Marina and other waterfront residential developments. Currently this development is complete and will host 11, 500 Employees up

  23. Slide 23: Existing Retail Tenants

    EXISTING RETAIL TENANTS Page 23 © King Abdullah Economic City 2015

  24. Slide 24: Appendix

    Appendix Page 2 © King Abdullah Economic City 2015

  25. Slide 25: Economic Cities Authority (ECA)

    ECONOMIC CITIES AUTHORITY (ECA) PRIVILEGED EASE OF DOING ONE REGULATOR REGULATIONS BUSINESS • Master plan Approval & • 100% foreign ownership for • 60x24x7 concept of service Permitting. companies & individuals provision for all government • Business Licensing • Bonded Zone regulations services (com

  26. Slide 26: Incentives for Doing Business in KAEC: Regulatory

    INCENTIVES FOR DOING BUSINESS IN KAEC A) REGULATORY • Full foreign ownership permitted for companies, plant, equipment, projects arid property • Accelerated business registration and setup process • 38 bilateral trade agreements with partners giving stronger foreign investor rights • Double taxation

  27. Slide 27: Incentives for Doing Business in KAEC: Fiscal

    INCENTIVES FOR DOING BUSINESS IN KAEC B) FISCAL • 20% Corporate Tax Rate for foreign companies and unlimited loss carryover • No VAT or GST, no land or property tax and no personal income tax • Kingdom is ranked 3rd best tax environment globally • Tax deductions for R&D investment and training expen

  28. Slide 28: Incentives for Doing Business in KAEC: Financial

    INCENTIVES FOR DOING BUSINESS IN KAEC C) FINANCIAL • Access to soft loans from Saudi Industrial Development Fund (SIDF), and Public Investment Fund (PIF) • Human Resources Development Fund that provides aid and support for activities related to qualifying, training and recruitment of Saudi labor. It

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