Dubai Investment (p.j.s.c) · DFM:DIC
Dubai Investment (p.j.s.c) — Dubai Investments PJSC — FY2018 Earnings Presentation
42 slides from Dubai Investment (p.j.s.c)'s earnings presentation, 2019
Slide 1: Dubai Investments PJSC Fiscal Year 2018 Investor Presentation
Dubai Investments PJSC Fiscal Year 2018 Investor Presentation
Slide 2: Content
Content Page 3 Management Summary Page 12 Financial Year 2018 Highlights Page 22 Q4 2018 Financial Highlights Page 25 Outlook & Guidance Page 29 Portfolio Information Page 42 Disclaimer – Forward Looking Statements 2
Slide 3: Management Summary
Management Summary Dubai Investments
Slide 4: A Diversified Investment Company Listed on DFM
A Diversified Investment Company Listed on DFM - Market Cap. of c. AED 5.4 Bn1 Dubai Investments Overview – Total Assets of over AED 19.6 billion with over 16,000 shareholders A Glance at Dubai Investments Shareholders (Dec 2018) ESTABLISHMENT OWNERSHIP TYPE 11.5% Investment Corporation of Dubai In
Slide 5: 22 Years of Building Businesses and Creating Shareholder Value
22 Years of Building Businesses and Creating Shareholder Value Long-term investment approach in building underlying value of investees – provide the necessary strategic direction along with growth capital; Exit businesses which have matured - enhance shareholder value through the capital gains 2018
Slide 6: Significantly Outperformed both DFM Index and Real Estate Index
Significantly Outperformed both DFM Index and Real Estate Index Exchange Dubai Financial Market DI has been enhancing shareholder returns Symbol DFM:DIC ISIN AED000601016 500 Sector Investments & Financial Services Acquisition of 59.66% Issued capital AED 4,252,019,585 450 Acquisition of Stake in Al
Slide 7: Board of Directors
Board of Directors Chairman – Suhail Bin Fares Al Mazrui Suhail Bin Fares Al Mazrui holds a University Degree in Petroleum Engineering. He has a wide experience in Petroleum Engineering and executive experience in the Oil Industry. He is the former CEO of Abu Dhabi National Oil Company (ADNOC) as we
Slide 8: Diversified Portfolio of Assets
Diversified Portfolio of Assets Total Assets AED 19.6 BN 32.4% 6,352 As at 31st December 2018 Amounts in AED DUBAI INVESTMENTS 11% PARK DEV. COMPANY 2,157m 21.6% 4,232m 12.2 4.8 2.6 TREASURY PORTFOLIO billion billion billion & OTHER 23.8% 14.0% 62.3% 429m DUBAI INVESTMENTS REAL ESTATE COMPANY MANUFA
Slide 9: Flagship asset: Dubai Investments Park - a City within a City
Flagship asset: Dubai Investments Park - a “City within a City” TOTAL AREA NET LEASE AREA 23 17 million m2 million m2 LEASED PLOTS INDUSTRIAL ~1,100 60% LEASED RESIDENTIAL 98% 32% 2018 INCOME COMMERCIAL 785 8% AED million 9
Slide 10: Recognitions and Awards
Recognitions and Awards Al Mal Capital PSC Dubai Investments named ‘UAE Asset Real Estate Wins Manager of the Year’ at Global Infrastructure Mena Fund Manager Congress Recognition Performance Awards Award Emirates Float Glass won TechSource won award the Industrial for Top 10 Best IT Development Bur
Slide 11: Management Strategy: Generate Sustainable Cash Flows to Maximize Shareholder Returns
Management Strategy: Generate Sustainable Cash Flows to Maximize Shareholder Returns Investment in a broad range of industrial companies - greenfield to mature businesses Investment in healthcare and education sector funds Diversification Real estate & investment portfolio designed to perform
Slide 12: Financial Year 2018 - Highlights
Financial Year 2018 - Highlights
Slide 13: Key Messages – FY 2018
Key Messages – FY 2018 Total Income in FY2018 reached AED 3,017.8 million, growing by 8.4% from previous year backed by growth in sale of goods (result of consolidation of Emicool) Profit attributable to shareholders declined to AED 651.4 million in FY2018 from AED 1,011.6 Group Result million i
Slide 14: FY2018 – Financial Performance: Strong and profitable company
FY2018 – Financial Performance: Strong and profitable company TOTAL INCOME TOTAL EXPENSES * EBITDA ATTRIBUTABLE EPS NET PROFIT 3,046.4 (2,508.4) 971.3 651.4 0.15 AED million AED million AED million AED million AED per share TOTAL ASSETS CASH TOTAL LIABILITES DEBT / EQUITY # ROE** 19.6 0.9 7.3 44.8%
Slide 15: FY 2018 – Key Performance Indicators
FY 2018 – Key Performance Indicators: Growth in revenues subdued by increasing expenses; reducing profitability margins/ratios Income and earnings (AED m) FY 2018 FY 2017 y-o-y (%) Total income 3,046.4 2,784.3 8.4% 1 Total expenses* (2,508.4) (1,996.1) 32.1% Profit for the period 570.2 931.3 (38.8%)
Slide 16: Total Income Movement Year-on-Year
Total Income Movement Year-on-Year Total Income Bridge (AED mn) 16.0 89.6 541.9 5.8 0.9 (19.3) 104.3 (151.4) 228.9 9.9 3,017.8 (543.7) (47.5) 2,784.3 Dec-17 Sale of goods Rental income Contract Sale of Fair valuation Sale of Sale of Fair valuation Dividend Share of profit Gain on fair Bargain Dec-18
Slide 17: Emicool additional 50% acquisition adding AED 2.2 BN to Total Assets
Emicool additional 50% acquisition in Q1 2018 is adding AED 2.2 BN to Total Assets as well as AED 1.5 BN of debt Total Assets (AED bn) Total Liabilities & Equity (AED bn) 19.2 19.0 19.4 19.6 18.7 18.6 19.0 19.6 16.8 16.4 16.7 17.0 16.2 15.9 16.2 16.5 2.4 2.9 5.3 5.0 5.6 5.1 2.1 2.2 4.9 1.9 2.0 2.0 2
Slide 18: DIC has maintained a disciplined approach to Asset Growth
DIC has maintained a disciplined approach to Asset Growth Total Assets (AED bn) 19.2 19.0 19.4 19.6 16.8 16.7 17.0 16.1 16.1 16.4 5.1 15.3 15.5 15.7 5.3 5.0 5.6 14.7 14.7 15.0 5.0 4.9 5.2 5.2 5.7 5.0 5.8 5.2 5.7 5.6 5.7 5.6 13.9 14.1 13.8 14.4 11.1 11.4 11.7 12.1 10.5 10.9 10.9 9.0 9.1 9.3 9.7 9.7 Q
Slide 19: Balance Sheet Development: 14% growth over previous year
Balance Sheet Development: 14% growth over previous year Total Assets (AED mn) 587.1 3.4 226.2 3.4 46.1 288.2 2185.61 (76.2) (403.8) (1.4) (161.6) (18.3) (77.2) (17.9) (34.5) Non-current Assets Current Assets 19,554.2 17,005.0 Dec-17 PP&E Goodwill & Investment Investments Equity Rent Finance lease I
Slide 20: Q4 2018 - Financial Highlights
Q4 2018 - Financial Highlights
Slide 21: Q4 2018 – Financial Performance: Declining Income and Increasing Interest Expenses
Q4 2018 – Financial Performance: Declining Income and Increasing Interest Expenses, Reducing Overall Profitability TOTAL INCOME TOTAL EXPENSES * EBITDA ATTRIBUTABLE EPS NET PROFIT 625.1 679.8 91.4 (72.9) (0.02) AED million AED million AED million AED million AED per share TOTAL ASSETS CASH TOTAL LIA
Slide 22: Q4 2018 – Key Performance Indicators
Q4 2018 – Key Performance Indicators Income and earnings (AED mn) Q4 2018 Q3 2018 Q4 2017 q-o-q (%) y-o-y (%) Total income 625.1 841.3 751.6 (29.1%) (20.6%) Total expenses* (679.8) (664.1) (672.3) 7.1% 5.8% Profit for the period (98.8) 200.7 136.6 (149.2%) (172.1%) Attributable profit (72.9) 233.3 1
Slide 23: Evolution by Quarter: Resilient Rental Income Portfolio
Evolution by Quarter: Resilient Rental Income Portfolio Total Income (AED m) Continuous growth 927.2 On an annual basis, Total Income increased by 8.4% year on year 841.3 from FY2017 to FY2018, but declined by 29.1% from Q3 2018 to 697.2 749.2 751.6 Q4 2018 due to additional losses recognized from
Slide 24: Rental income from DIP continues to remain robust
Rental income from DIP continues to remain robust Rental income (AED m) 249 230 235 232 236 220 224 220 227 217 215 207 214 190 195 196 198 191 183 180 186 186 181 172 15.7% 4.8% 6.0% 4.9% 1.6% (4.2%) (2.0%) (3.9%) (1.2%) (5.4%) (5.3%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2018 Total Rental
Slide 25: Outlook & Guidance
Outlook & Guidance Dubai Investments
Slide 26: Outlook and Guidance for FY 2019
Outlook and Guidance for FY 2019 Continue to generate steady income, backed by recurring cash flow streams with growth in net profitability Refinancing of DIPDC $300mn Sukuk maturing in February 2019 Focus on monetizing available land bank to perform through the market cycles and enhance reven
Slide 27: Financial Calendar
Financial Calendar Upcoming Events: 17 April 2019 Annual General Meeting 27
Slide 28: Investor Relations Contact
Investor Relations Contact Mushtaq Masood Maher Rabah Group Chief Financial Officer Investor Relations Dubai Investments PJSC Dubai Investments PJSC PO Box 28171 PO Box 28171 Dubai, UAE Dubai, UAE Phone +971 4 8122 400 Phone +971 4 8122 400 Email mushtaq@dubaiinvestments.com Email maher@dubaiinvestm
Slide 29: Portfolio Information
Portfolio Information Dubai Investments
Slide 30: Dubai Investments Park – Industrial and Commercial
Dubai Investments Park – Industrial and Commercial Business Overview Dubai Investments Park (DIP) is a self-contained mixed-use industrial, commercial and residential complex. Spread over a total area of 2,300 hectares, DIP is based on a pioneering concept of creating a “city within a city”. Include
Slide 31: Dubai Investments Park - Residential
Dubai Investments Park - Residential Business Overview DIP residential areas offer a variety of options from high-end residential living to staff accommodation. This comprises across several communities: • The Green Community - villas, townhouses, apartments • Ritaj - apartments • Dunes Village - ap
Slide 32: Properties Investment
Properties Investment Business Overview Properties Investments is involved in investment in, and development of, real estate properties and has developed prestigious residential and recreational projects such as the Green Community and Courtyard Marriott in DIP. Properties Investments was formed in
Slide 33: Dubai Investments Real Estate Company - Ritaj
Dubai Investments Real Estate Company - Ritaj Ritaj residential community Location: Dubai Investments Park Size: 2.58 million square feet Objects: 11 residential blocks 1,343 studio apartments 447 one bedroom apartments 194 two bedroom apartments 40 three bedroom apartments The low rise community al
Slide 34: Dubai Investments Real Estate Company – Mirdif Hills
Dubai Investments Real Estate Company – Mirdif Hills Mirdif Hills is a 3.9 million sqft mixed-use residential, commercial, hotel and retail project under development Development Overview • Mushrif Park, Mirdif, Dubai • Freehold plot 949,999 sqft • 993 residential apartments and 66 serviced apartment
Slide 35: Al Taif Investment
Al Taif Investment Business Overview Currently working to develop an AED 460 million mixed-use commercial and residential project in Fujairah. Partnership between Dubai Investments and Government of Fujairah. Business Overview 60% Dubai Investments 40% Government of Fujairah 35
Slide 36: Masharie
Masharie Business Overview Investments in medium and large-sized companies operating in construction materials, contracting, interior design and related activities. During 2012, Masharie divested 5 entities operating in Aluminum sheet Aluminum extrusions for Aluminum design, production construction
Slide 37: Dubai Investments Industries
Dubai Investments Industries Business Overview DII is the greenfield investment arm of Dubai Investments across diversified industry sectors: Steel structure Overhead lifting solutions Polystyrene insulation manufacturing and maintenance board materials • Acquired 26.75% stake in King’s College Hosp
Slide 38: Emirates Building Systems
Emirates Building Systems Business Overview Leading manufacturer of steel structures in the UAE with offices in other GCC countries, Pakistan, Bangladesh and United States. Manufactures hot rolled structures, pre-engineered buildings, aluminum and steel sheeting, insulated panels, building accessori
Slide 39: Glass LLC
Glass LLC Business Overview Premium quality glass solutions from float glass manufacturing of high end architectural glass and float laminated glass. Five subsidiaries: Emirates Float Glass UAE’s largest float glass facility with capacity of 600t of glass per day Emirates Glass Architectural glass S
Slide 40: Emicool
Emicool Business Overview Emicool is a B2B and B2C district cooling company that provides clean, efficient and innovative solutions to a number of communities in the UAE. Established in 2003 as joint venture between Dubai Investments and Union Properties (50%:50%). Acquired additional 50% controlled
Slide 41: Al Mal Capital
Al Mal Capital Business Overview Al Mal Capital, founded in 2005, is a diversified, multi- line investment banking firm headquartered in Dubai. Licensed and regulated by the UAE Central Bank, Al Mal Capital offers a wide range of investment products spread across its business lines of investment ban
Slide 42: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements This presentation has been prepared solely for informational purposes. The presentation may contain forward looking statements, which reflect our beliefs or current expectations and assumptions regarding the future of the business, future plans and strategies,
Dubai Investments PJSC — FY2018 Earnings Presentation on 6ix