Emaar, The Economic City · TADAWUL:4220

Emaar, The Economic City — Q1 2016 Earnings Presentation

28 slides from Emaar, The Economic City's earnings presentation, Mar 31, 2016

  1. Slide 1: EEC - Investor Relations Presentation

    EEC - Investor Relations Presentation March 31, 2016 © 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 12.5BSAR 22M SQM High 30% Market Cap sold out of a total of 131M SQM and 132,000 SQM in Q1 2016 SpeedRail Operating early 2016 ownership stake 17% 9.8% 12.4% 98% Revenue Growth EBIT Growth Net Income Growth Increase in IV Ten

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

    EEC’s Financial Growth Quarterly Breakdown Net Income of -31 M SAR for Q1 2016 (SARS M) Q1 2015 Q2 2015 Q3 2015 Q 4 2015 Q1 2016 236 169 229 386 157 147 85 132 85 176 158 50 52 8.1 Revenue Gross Profit Net Income -31 Presales and Revenue Segment Breakdown % Breakdown of for March 31,2016 Revenue Mar

  9. Slide 9: EEC's Segment Breakdown YTD March 2016

    EEC’s Segment Breakdown YTD March 2016 Residential Financial Industrial Valley Commercial Development 59 Revenue 33 16 35 GP 27 -1.2 30 EBITDA 22.2 -2.9 31 Net Profit 24.4 -4.1

  10. Slide 10: Sales Breakdown – PJTD vs. YTD – March 2016

    SALES BREAKDOWN – PJTD VS. YTD – March 2016 Total Area (M2 ‘000) Number of Units (Full Value) PJTD YTD PJTD YTD 3,939 22,364 2,653 11,609 1,237 8,711 1,720 48 57 192.58 5 14 113 - 132 35 20 0 2 Vertical Land IV Land Sales PDC Land Total Area Vertical Land IV Land PDC Land Total Sales Units Sales Val

  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 March 2016

    Residential Development Sales and Lease Breakdown YTD March 2016 RE Vertical Land Residential Development Game Changers 46.2 (SARS) Strong presales growth at 79.95% CAGR from 2012-2014 driven by: Presales • Competitive prices offering investment 26 upside • Good infrastructure relative to other majo

  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 9 272 369 Units 12 6 178 641 Land Net Order Intake SAR M 167 673 655 776 Units 136 403 819 912 Totals Net Order Intake SAR M 188 682 927 1,149 Units 148 409 997 1,767 Bench Mark Analysi

  14. Slide 14: Residential Sales Summary YTD

    RESIDENTIAL SALES SUMMARY YTD % Presales % Unsold % Lease Residential Vertical Sales Summary Residential Land Sales Summary Al Waha 24% 76% 144 TH4 97% 3% 253 Al Talah 1.3 80% 20% 179 Al Talah 5 85% 15% 504 GC2 16% 84% 147 Al Talah 4 90% 10% 410 GC1 Villa 100% 0% 12 Al Talah 3 96% 4% 480 BC1 Villa 1

  15. Slide 15: Residential Development Project Breakdown YTD

    RESIDENTIAL DEVELOPMENT PROJECT BREAKDOWN YTD Total Total Released Sellable Construction Community Type Status Unreleased Sale/SqM Lauch Date Sales %Sold Units Area Progress Units Al Shurooq Apartment Launched 851 589 135,064 4,874 Complete Launched 547 64% Al Waha Apartment Launched 388 42,718 6,38

  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 March 2016

    Industrial Valley Sales and Lease Segment Breakdown YTD March 2016 Industrial Leased Sold NLA Industrial Valley Game Changers Valley • Reoccurring revenue represents roughly 40% of IV revenues for Q1 2016 Phase IV IA 85% • 98% Growth in Tenants from 2013-2014 1,316,000 driven by increased Port Activ

  18. Slide 18: IV Lease and Sales Summary

    SqM ‘M IV Lease and Sales Summary Leased/Sold 4.4 Reserved / MoUs 0.0 Inventory Available 3.8 0.7 3.2 3.3 3.2 0.4 0.0 1.5 2.0 1.9 0.0 0.0 1.8 3.8 3.6 0.0 0.0 3.2 1.4 1.3 2.9 0.0 0.0 0.8 1.2 1.2 2.0 0.9 1.9 1.1 0.5 1.4 0.5 0.0 1.2 0.9 0.0 0.0 0. 0.6 0.4 0.5 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Phase 1A Ph

  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 WORLD HEALTH ily least plur 4a ale HUSSAM OPTICALS PHARMACY 4@_Jauao 2] i (Zee BB PRrovti Fianco MC DC ) baskin robbins ( pee Ss ; RESTAURANT & CAFE’ ° > Lys / LUN FURSAN TRAVEL Onatatravel its

  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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