Dar Al Arkan Real Estate Development Co. · TADAWUL:4300

Dar Al Arkan Real Estate Development — Q1 2020 Earnings Presentation

24 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2020

  1. Slide 1: Investor Presentation Q1 2020

    Investor Presentation Q1 2020 daralarkan.com

  2. Slide 2: Table of Contents

    Table of Contents Page No. 1. Macro Economic Overview & KSA Real Estate Market 3 2. Key Business Indicators Overview 8 3. Financial Performance Overview 11 4. Overview of Assets Portfolio 15 5. Appendix 19 2

  3. Slide 3: Macro Economic Overview & KSA Real Estate Market

    1 | Macro Economic Overview & KSA Real Estate Market 3

  4. Slide 4: The economic outlook is clouded by massive uncertainty!

    Macroeconomic Overview The economic outlook is clouded by massive uncertainty! Brent Oil Prices GDP to Shrink in 2020 Deficit to Expand in 2020 0%  The Global economy is expected to shrink in 2020 2017 2018 2019E 2020P* 2021P* as a result of the Covid-19 lockdowns, the length -2% 80 71.1 -4.7% and

  5. Slide 5: However, the long-term fundamentals of the market remain intact

    KSA Real Estate Sector Overview However, the long-term fundamentals of the market remain intact Positive Demographic Trends Supply Shortages Government Support KSA Total Population (Age/Gender) Total population 34 million  Average population growth of 2.5% per year.  Chronic under supply of reside

  6. Slide 6: The underlying market dynamics in Q1 2020 showed resilience

    KSA Real Estate Sector Overview The underlying market dynamics in Q1 2020 showed resilience 20 80 3.7 2.9 4.4 15 4.1 3.3 60 4.6 2.5 3.7 2.6 12.8 10.1 10.2 10 40 10 13.2 2.2 7.9 1.5 8.5 13.8 14.2 13 13.5 12.6 26.5 10.8 11.3 20 7 5 36.3 34.3 36.3 35.6 8.9 9 30.8 7.9 0.4 0.7 27.2 6.9 22.7 17.6 3.7 3.8

  7. Slide 7: In Q1 2020 the residential plots and apartments delivered better pricing

    KSA Real Estate Sector Overview In Q1 2020 the residential plots and apartments delivered better pricing Residential Index KSA Real Estate Price Index (QoQ) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 1.0% 0.9% 0.9% 2.6% 0.4% 2.2% 2.1% 2.1% 0.0% -0.7% 0.8% -0.4% 0.7% -0.5% -0.4% 0.3% 0.2% 0.1% -1.0% -0.

  8. Slide 8: Key Business Indicators Overview

    2 | Key Business Indicators Overview

  9. Slide 9: Q1 2020 – Key Business Indicators

    Q1 2020 – Key Business Indicators Investment In Revenues (LTM) -27% EBITDA (LTM) +9% Development Properties (LTM) +17% SAR 3,261 mn SAR 861 mn SAR 4,809 mn (At Q1 2019 : SAR 4,442 mn) (At Q1 2019 : SAR 792 mn) (At Q1 2019 : SAR 4,123 m) Gross Debt/ Cash And Bank (24%) Book Value Per Share Capitaliza

  10. Slide 10: Dar Al Arkan Real Estate Assets

    Dar Al Arkan Real Estate Assets  DAAR’s Real Estate assets portfolio at cost is SAR 19.0 bn.  DAAR has a strong pipeline of projects across the Kingdom totaling 12.4 mn sqm. Real Estate Properties 57% Break up - SAR bn 33% Al Tilal Shams Al 0.2 mn Arous Shams Ar Riyadh 0.9 mn 3.1 mn Project Lands

  11. Slide 11: Financial Performance Overview

    3 | Financial Overview Performance 11

  12. Slide 12: Financial Performance – Q1 2020 Profitability

    Financial Performance – Q1 2020 Profitability Quarterly Revenues (SAR mn) Gross Profit (SAR mn) & Margin (%) 3,000 2,794 475 28% 500 27% 30% 25% 2,500 34 16 22% 25% 400 1,785 15% 19% 2,000 17% 18% 20% 266 17% 300 251 1,500 34 202 213 15% 16 165 152 159 160 988 846 928 899 841 200 1,000 824 593 26 10

  13. Slide 13: Financial Performance – Q1 2020 Cash Flow

    Financial Performance – Q1 2020 Cash Flow Cash Flow – Q1 2020 (SAR mn) Income / Sources of Cash Uses of Cash / Expenses 6,600 302 136 319 555 5,500 1,650 1 4,400 593 3,300 4,880 2,200 3,950 1,100 0 Starting Cash Revenue New Debt Working Capital Debt Opex Investment in Maintenance Ending Cash Repayme

  14. Slide 14: Financial Performance – Q1 2020 Debt

    Financial Performance – Q1 2020 Debt Gross Debt Vs Net Debt (SAR mn) Debt* / Capitalization 9,600 9,163 40% 8,272 7,832 8,000 6,830 6,747 6,663 6,430 32% 29% 5,782 5,699 30% 26% 26% 26% 6,400 4,880 23% 5,240 3,950 4,800 20% 4,937 5,160 4,903 4,710 3,472 22% 3,888 21% 3,200 10% 15% 15% 1,600 3,882 4,

  15. Slide 15: Overview of Assets Portfolio

    4 | Overview of Assets Portfolio

  16. Slide 16: Residential & Commercial Development Projects

    Residential & Commercial Development Projects Riyadh Projects Jeddah Projects Eastern Province Projects I Love Florence, Dubai - Situated in the Al-Ammariyah district - The site is situated 12 kms from CBD - The project is located in the Eastern - The I Love Florence Tower project is (King Khalid Ro

  17. Slide 17: Portfolio Summary – Completed Residential Properties

    Portfolio Summary – Completed Residential Properties Parisiana South Parisiana Living Naeem Eljiwar - Located in Riyadh city and easily - Located in Riyadh city and easily - Located within the boundary of accessed through King Fahad accessed through King Fahad the Prophet’s Mosque featuring Road and

  18. Slide 18: Leasing Properties Portfolio

    Leasing Properties Portfolio Al-Qasr Mall, Riyadh Land Area 61,949 m² Built up Area 220,202m² Gross Leasable Area 78,958 m² No. of floors 3 Leasable Floors plus two parking Parking 1,579 Parking Spaces Latest Activity:  91% occupancy achieved  Cinema multiplex with 15 screens opened in 2019.  Bow

  19. Slide 19: Appendix

    DAR AL ARKAN uL_<jXI jl> 5 Appendix

  20. Slide 20: Appendix I – Statement of Profit or Loss

    Appendix I – Statement of Profit or Loss SAR in 000s FY 2018 FY 2019 Q1 – 2019 Q1 - 2020 Revenue 6,412,265 3,491,856 823,678 593,021 Cost of revenue (5,355,114) (2,667,416) (664,394) (432,989) Gross profit 1,057,151 824,440 159,284 160,032 % 16.5% 23.6% 19.3% 27.0% Operating expenses (160,753) (165,

  21. Slide 21: Appendix II – Statement of Financial Position

    Appendix II – Statement of Financial Position SAR in 000s FY 2018 FY 2019 Q1 - 2019 Q1 - 2020 Investment properties, net 1,693,141 1,651,357 1,683,121 1,641,028 Long-term development properties 14,148,262 16,895,604 14,602,379 17,029,275 Property and equipment, net 83,085 79,765 82,458 77,654 Invest

  22. Slide 22: Appendix III – Statement of Cash Flows

    Appendix III – Statement of Cash Flows SAR in 000s FY 2018 FY 2019 Q1 – 2019 Q1 - 2020 Profit before Zakat 521,855 312,389 26,167 12,735 Adjustments for: Depreciation & Amortization 78,355 55,653 13,665 14,045 Provision for expected credit losses 0 2,000 0 End of service indemnities 4,122 4,313 601

  23. Slide 23: Disclaimer

    Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE OR himself independently based solely on the prospectus in relation to such securities DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, (including any supplement thereto) available when orders are confirmed before taking JAPAN

  24. Slide 24: Thank you

    Investor Relations Riyadh – Saudi Arabia Thank you Tel: +966 11 206 9888 Ext:1670 ir@alarkan.com

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