Emaar, The Economic City · TADAWUL:4220
Emaar, The Economic City — Q4 2017 Earnings Presentation
48 slides from Emaar, The Economic City's earnings presentation, 2018
Slide 1: EEC Investor Presentation Q4-2017
EEC Investor Presentation Q4-2017 Page 1 http://www.kaec.net/
Slide 2: KAEC - Facts & Vision, Project Overview
Page 2 KAEC - Facts & Vision Project Overview KAEC is a greenfield city development roughly the Vision: size of Washington DC. Its objective is to help • Be the enabler of socio economic development with Saudi Arabia’s acute housing demand and • Provide smart infrastructure support economic diversif
Slide 3: Introduction
Page 3 Introduction King Abdullah Economic City (“KAEC”) has a land area of 168 million sqm and is destined to become a mega economic city in the Kingdom of Saudi Arabia KAEC benefits from the following key strengths : Strong Government support, proven track record and renowned/committed sponsors
Slide 4: Business Model
Business Model CITY DRIVERS • Port • Industrial Valley Funding • Haramain Station • Bonded Zone Economic Sources • Land Bridge • MBSC Impact • Aviation academy Realization of Shareholders CITY DEVELOPMENT Economic city Equity INFRA-STRUCTURE & ECONOMIC GROWTH HOUSING NEEDS vision Job Creation • Road
Slide 5: Infrastructure Development & City Drivers
Page 5 Infrastructure Development & City Drivers
Slide 6: KAEC Strategic Sectors – Alignment to VISION 2030
Page 6 KAEC Strategic Sectors – Alignment to VISION 2030
Slide 7: The PPP model: EEC Master Developer and ECA Regulator
Page 7 The PPP model Private Sector contribution EEC – The Master Developer Quality of Life Competitive Healthcare • Health and Wellness Sport and Leisure Residential • Jobs and Opportunities housing Public Sector contribution amenities • Affordable Premium Housing ECA – The Regulator Infrastructure
Slide 8: Benefits to Saudi
KING Page 8 AA ABDULLAH eee = ECONOMIC ue CITY Benefits to Saudi ® B=) eo Jobs Creation Attract Global & Investment Opportunities Housing Solutions Local Investments to Local Companies for all Levels 2017 | 10K Jobs 109 Companies 208 | 80% to Saudi 10K | 2017 2025 | 55K Jobs 10B Total Investments Co
Slide 9: KAEC – A city of opportunities and enabler of socio-economic development
Page 9 KAEC – A city of opportunities and enabler of socio-economic development 1 Hard infrastructure KAEC is realizing its vision to become a great enabler of social-economic development in the KSA. Completed in developed and planned zone 2 Global and local businesses Solid infrastructure attracts
Slide 10: Strategic location and connectivity – Rail connection with key cities
Page 10 Strategic location and connectivity – Rail connection with key cities 1 450 km High Speed train connects Jeddah, Makkah and Madinah with KAEC 2 The High Speed train will have the capacity to service 8.5 million people 3 The High Speed train is expected to be operational by Q2 2018 4 The area
Slide 11: Hard infrastructure and social facilities
Page 11 Hard infrastructure and social facilities 83.1 km 102.3 km 347.8 km 1 station 2 renowned institutions Primary roads Water network Electricity network Gas stations Education 5 Prince Mohammad Bin Salman 84.5 km 79.2 km 13 tenants College, with international Secondary roads Shops and Retail Mo
Slide 12: KAEC – 2017 Highlights
Page 12 KAEC – 2017 Highlights KAEC signed series of agreements during 2017 • between the General Customs Authority and the Economic Cities Authority (ECA) to establish a re- export zone in KAEC • to establish an auto racing circuit at lagoon and marina • to establish gas station within the industri
Slide 13: KAEC – 2017 Other highlights
Page 13 KAEC – 2017 Other highlights • Successful test runs of Haramain high speed train conducted between KAEC-Madinah. Expected to run in Q2, 2018 • EEC IV to invest SAR 132 million to develop Phase 3 • KAEC launches the off-plan sales of residential land at Miram Al Hejaz next to Haramain high- s
Slide 14: Clean, Serene Living KAEC Residential
Page 14 Clean, Serene Living KAEC Residential Evolve the ‘Perfect Home’ concept to reality…
Slide 15: Wide ranging living solutions – Catering to all Income Segments
Page 15 Wide ranging living solutions – Catering to all Income Segments Al Shurooq is the Al Talah Gardens Bay La Sun district Al Murooj is an The Village Miram Al-Hejaz, a Al Waha, is an affordable housing is mid income upmarket district elite, new gated includes labor mid income awawd winning comm
Slide 16: Residential choices – Proven value
Page 16 Residential choices – Proven value 12,000 Prime Land in Jeddah Value Range (SAR/sqm) 10,160 Corniche 18,000-23,000 10,000 King Abdulaziz road 14,000-18,000 8,000 5,700 Prince Sultan Madina Road 13,000-15,000 6,000 4,500 4,489 4,807 3,746 Tahliya Street 18,000-22,000 4,000 2,000 Secondary Lan
Slide 17: KAEC Industrial Valley - Progressing rapidly
Page 17 Non Oil KAEC Industrial Valley - Progressing rapidly Economy Enhance KAEC’s economic impact through the creation of ‘value add’ businesses
Slide 18: KAEC Master Plan Industrial Valley
Page 18 KAEC Master Plan Industrial Valley
Slide 19: IV as a key driver – Industrial Valley lease and sales breakdown
Page 19 IV as a key driver – Picture below tells it all Industrial Valley Lease Breakdown In Thousand SQM Leased Reserved Area Available for Lease (in Thousand SQM) 3,500 3,000 IV areas earmarked for Not Launched 1,031 lease to support 2,500 businesses willing to 2,000 Under Development rent the fac
Slide 20: Improvement in market dynamics – IV Proven value creation
Page 20 Improvement in market dynamics – IV Proven value creation 700 20 Lease 18 18 600 585 Sales 16 500 14 The value addition in the city is 12 reflected in the increasing Industrial 400 Valley land value 10 300 8 200 6 4 100 2 0 0 2012 2013 2014 2015 2016 2017 Sale Price / SQM Lease Price / SQM
Slide 21: More Than 120 Global & Local Firms in KAEC
Page 21 More Than 120 Global & Local Firms in KAEC FMCG Pharma Logistics Building Materials Automotive Others
Slide 22: King Abdullah Port - Strong growth potential and handling capacity
Page 22 King Abdullah Port - Strong growth potential and handling capacity Current Capacity Total area RoRo capacity is 1.5 million CEU (Cars) - 6 water berths 17,296,512 sqm Handling Capacity is 1.6 million TEU On Completion by 2025 YoY Growth Numbers Achieved in 2017 Upon completion, King Abdullah
Slide 23: Strategic location and connectivity – Amongst the best ports in the world
Page 23 Strategic location and connectivity – Amongst the best ports in the world 1 Growing Port The Saudi Coast Guard, Saudi Customs, Saudi Food and Drug Administration with its labs and sampling facilities and other relevant Government Agencies are all duly established inside the Port. 2 Strategic
Slide 24: Value Enhancers
KING Page 24 ABDULLAH === ECONOMIC ue CITY Value Enhance
Slide 25: MBSC – Empowering Education & Development
Page 25 MBSC – Empowering Education & Development • MBSC is the first Business and Entrepreneurship College in Saudi Arabia. The College is inspired by Vision 2030 and aims to increase entrepreneurial activities and ecosystems in the Kingdom • It has been established through an International partner
Slide 26: MBSC - Entrepreneurship & Youth Support
Page 26 MBSC - Entrepreneurship & Youth Support
Slide 27: Entrepreneurship & Youth Support – Culinary Academy
Page 27 Entrepreneurship & Youth Support – Culinary Academy Socio-economic initiative aimed at graduating culinary specialists and supporting the localization of the Kingdom's restaurants and hospitality industry MISK Foundation will work on providing scholarships and training for 500 students who m
Slide 28: Entrepreneurship & Youth Support – Tomouh Program
Page 28 Entrepreneurship & Youth Support – Tomouh Program Tomouh is one of the city’s most significant sustainability initiatives, providing 1,000 young Saudi men and women, living in the vicinity, the skills and training required to compete for quality jobs or to start their own businesses. KAEC is
Slide 29: The World Academy- Outstanding Educational Opportunities
Page 29 The World Academy- Outstanding Educational Opportunities Total Development Area of (10,500 sqm) with a capacity of (600) Students, currently over (500) Students are enrolled. Fully operational since Q3 – 2014. Our City is built with learning at the heart, providing the highest quality educat
Slide 30: Family Medical Center- Health & Wellness center for KAEC
Page 30 Family Medical Center- Health & Wellness center for KAEC Total Development Area of 1,400 sqm with(10) Clinics and a capacity of (15) hospital beds. Fully operated since September 2016. Your peace of mind and your family’s wellbeing are assured by a full range of medical facilities and specia
Slide 31: KAEC Tourism strategy relies heavily on infrastructure, leisure and entertainment
Page 31 KAEC Tourism strategy relies heavily on state of the art infrastructure, leisure and entertainment facilities The tourism strategy is to make KAEC a preferred choice for leisure and business in Saudi
Slide 32: Bay La Sun Hotel and Marina
Page 32 WORLD CLASS EDUCATION Bay La Sun Hotel and Marina Total Built-Up area of 21,000 sqm. The hotel in operation since 2013. The Hotel is the first hotel in KAEC, with 195 rooms, a conference room, meeting rooms, a theater, restaurants, a gym and a mosque. For more info, please visit Bay La Sun h
Slide 33: The Views serviced apartments
Page 33 WORLD CLASS EDUCATION The views The views is a 4 stars serviced apartments for short stay rentals overlooking the red sea For more info, please visit Bay La Sun hotel’s website: http://www.baylasunhotel.com
Slide 34: Royal Greens
Page 34 WORLD CLASS EDUCATION Royal Greens KAEC has been selected to host the European PGA Tour Championship in 2019 at its championship Golf Course – Royal The Royal Greens Golf and Greens Country Club is an exclusive, first-class golfing experience. Royal Greens Golf clubhouse consists of health c
Slide 35: Bay X Exhibition Center
Page 35 WORLD CLASS EDUCATION Bay X Exhibition Center Bay X offer 2,800 sqm of hall space, 13 meeting rooms and an outdoor events zone capable of hosting multiple independent events concurrently. For more info, please visit Bay La Sun hotel’s website: http://www.baylasunhotel.com
Slide 36: Juman Park
Page 36 WORLD CLASS EDUCATION Juman Park- the idea place to relax with the family 70,000 sqm of open space that includes walkways, running tracks, cycling tracks, a mini golf course and games For more info, please visit Bay La Sun hotel’s website: http://www.baylasunhotel.com
Slide 37: Juman Karting
Page 37 AN EXCLUSIVE WORLD-CLASS COURSE Juman Karting Saudi Arabia’s longest amateur karting track, Juman Karting provides adrenaline-fueled excitement for everyone. For more info, please visit KAEC’s website: http://visit.kaec.net/discover/facilities/karting
Slide 38: Tourism & Entertainment Projects
Page 38 Tourism & Entertainment Projects 30+ Projects under development
Slide 39: Leisure
KING AA ABDULLAH = ECONOMIC cSMc RALDA lapejP ars TAGOONA MOTORPARR = MOTORPARK Page 39
Slide 40: Leisure: Activation Events
Page 40 Leisure Activation Events 2016│ 160K visitors 2017│ 400K visitors 2018│ 1M visitors
Slide 41: Leisure
Page 41 Leisure A destination focused on the Leisure & Domestic Tourists- Saudi families and youth. Creating active programs that engage a natural lagoon and waterfront, integrates wildlife & parks, resorts and attractions. Brining to life immersive experiences with theme parks, shopping, dining and
Slide 42: Financial Highlights
Page 42 Financial Highlights
Slide 43: Existing bilateral debt profile and MoF Facility
Page 43 Existing bilateral debt profile and MoF Facility Current Commercial Facilities (SAR’Mn) EEC has a secured a total debt of SAR 10 bn. comprising of (i) SAR 5.0bn loan from Ministry of Finance for development of KAEC; and (ii) SAR 5.0bn from Commercial banks. Current outstanding debt is SAR 8.
Slide 44: Residential Sales Development Breakdown for YTD December 2017
Page 44 Residential Sales Development Breakdown for YTD December 2017 Residential Vertical Units Residential Land SAR in millions Sales Revenue GP Sales Revenue GP 250,000 SAR in millions 500,000 212,390 445,517 433,087 450,000 200,000 400,000 350,000 150,000 132,654 300,000 250,000 100,000 200,000
Slide 45: Financial Performance –FY 2017 Profitability
Page 45 Financial Performance –FY 2017 Profitability Historical Quarterly Revenues and Net Income (SAR mn) SAR in millions Revenue Net Income 1,000,000 846,738 800,000 589,721 628,030 558,982 600,000 425,170 400,000 272,330 318,234 238,564 223,191 268,521 179,550 200,000 69,123 35,366 26,853 (13,883
Slide 46: Proven financial track record – Land market value
Page 46 Proven financial track record – Value that the financials do no reflect (land market value) Land Market Value of 93 million sqm of Investment property is SAR 53 Billion based on fair value assessment survey conducted by Valustrat as of Dec 31, 2107 Development and Investment Properties on th
Slide 47: KAEC is a city that offers the world to you!
Page 47 INVEST IN THE LEADING ECONOMY You would agree ……. ….KAEC is a city that offers the world to you! Contact us: EEC Investor Relations Team IR Website: Click here IR@kaec.net IR App: Click here Tel Direct: +966 12 510 6955
Slide 48: DISCLAIMER
Page 48 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
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