Dar Al Arkan Real Estate Development Co. · TADAWUL:4300
Dar Al Arkan Real Estate Development — Q4 2019 Earnings Presentation
24 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2019
Slide 1: Investor Presentation Q4 2019
Investor Presentation Q4 2019 www.daralarkan.com
Slide 2: Table of Contents
Table of Contents Content Page No. 1. Macro Economic Overview & KSA Real Estate Market 3 2. Overview of Dar Al Arkan 6 3. Financial Performance Overview 10 4. Overview of Assets Portfolio 15 5. Appendix 19 2
Slide 3: Macro Economic Overview & KSA Real Estate Market
Divider Page 1. Macro Economic Divider Page& KSA Overview Real Estate Market 3
Slide 4: Macroeconomic Overview
Macroeconomic Overview A growing and diversifying economy supported by stable oil price in 2018-19 is being pressured by Covid-19 and the oil price war GDP Growth Picking Up Continued Reduction In Deficit Brent Oil Prices 80 71.1 (as% of GDP) 65.0 3,300 3% 0% 3,140 2017 2018 2019E 2020P 2021P 2022p
Slide 5: KSA Real Estate Sector Overview
KSA Real Estate Sector Overview Value of Real Estate Transactions in KSA (SAR bn) KSA Real Estate Price Index (QoQ) 1.0% 0.9% 400 0.4% -0.3% 320 0.0% -0.4% -0.4% 121.5 -0.6% -0.5% -0.7% 240 107.6 77.4 -1.0% 160 42.9 -1.6% 220.7 41.6 80 157.8 147 -2.0% -2.3% 136.5 101.2 0 2015 2016 2017 2018 2019 -3.
Slide 6: Overview of Dar Al Arkan
2. Overview of DarDivider Page Al Arkan Divider Page
Slide 7: Company Overview
Company Overview Prudent Real Estate Acquisition Strong Financial Position Diversification Strategies Paying Off In soft market conditions, management’s DAAR maintains a strong balance sheet with DAAR’s strategy is to generate revenue rigorous acquisition policies are proving SAR 7.2 bn in cash and
Slide 8: 2019 – Key Business Indicators
2019 – Key Business Indicators Investment In Revenues (-46%) EBITDA (-24%) Development Properties SAR 3,492 mn SAR 845 mn SAR 5,355 mn (2018 : SAR 6,412 mn) (2018 : SAR 1,112 mn) (2018 : SAR 3,381 m) Gross Debt/ Cash And Bank (-19%) Book Value Per Share Capitalization SAR 3,950 mn 29% SAR 17.60 (201
Slide 9: Dar Al Arkan Real Estate Assets
Dar Al Arkan Real Estate Assets DAAR’s total Real Estate Properties as per the financial DAAR has a strong pipeline of projects across the Kingdom statements is SAR 18.9 bn. totaling 12.4 mn sqm. Real Estate Properties Break up - SAR bn 57% 33% Al Tilal Shams Al Investments in Project Lands & 0.
Slide 10: Financial Performance Overview
Divider Page 3. Financial DividerPerformance Page Overview 10
Slide 11: Financial Performance – 2019 Profitability
Financial Performance – 2019 Profitability Yearly Revenues (SAR mn) Gross Profit (SAR mn) & Margin (%) 6,600 1,500 43% 45% 50% 42% 6,412 5,500 1,200 40% 1,299 4,400 4,735 1,114 900 1,057 24% 30% 983 24% 3,300 3,492 792 16% 824 3,056 600 20% 2,200 2,211 1,100 1,870 300 10% - 0 0% 2014 2015 2016 2017
Slide 12: Financial Performance – Q4 2019 Profitability
Financial Performance – Q4 2019 Profitability Quarterly Revenues (SAR mn) Gross Profit (SAR mn) & Margin (%) 500 28% 30% 3,000 25% 465 475 2,500 2,794 400 22% 24% 19% 17% 19% 2,435 18% 2,000 17% 300 15% 18% 1,500 1,785 266 251 200 12% 1,000 202 213 987 928 899 165 152 159 500 846 824 841 100 6% - 0
Slide 13: Financial Performance – 2019 Cash Flow
Financial Performance – 2019 Cash Flow Cash Flow – 2019 (SAR mn) Income / Sources of Cash Uses of Cash / Expenses 12,000 546 1,881 475 10,000 3,050 8,000 5,355 3,492 6,000 10 320 4,000 2,000 4,903 3,950 - Starting Cash Revenue New Debt Working Debt Opex Investment in Investment in Maintenance Ending
Slide 14: Financial Performance – 2019 Debt
Financial Performance – 2019 Debt Gross Debt Vs Net Debt (SAR mn) Debt* / Capitalization 9,000 7,832 40% 7,607 6,293 7,500 6,480 6,663 30% 29% 30% 26% 26% 2,310 5,280 26% 6,000 1,001 3,950 23% 582 3,160 4,500 4,903 20% 21% 22% 21% 3,000 5,296 5,292 4,698 3,882 10% 14% 15% 1,500 3,320 1,760 7% 0 0% 2
Slide 15: Overview of Assets Portfolio
Divider Page Divider Pageof 4. Overview Assets Portfolio
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
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
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 March 2019.
Slide 19: Appendix
Divider Page Divider 5. Page Appendix
Slide 20: Appendix I – Statement of Profit or Loss
Appendix I – Statement of Profit or Loss SAR in 000s FY 2017 FY 2018 Q4 - 2018 Q4 - 2019 FY 2019 Revenue 4,734,682 6,412,265 846,094 840,922 3,491,856 Cost of revenue (3,620,672) (5,355,114) (694,233) (628,050) (2,667,416) Gross profit 1,114,010 1,057,151 151,861 212,872 824,440 % 23.5% 16.5% 17.9%
Slide 21: Appendix II – Statement of Financial Position
Appendix II – Statement of Financial Position SAR in 000s FY 2017 FY 2018 FY 2019 Investment properties, net 3,290,010 1,693,141 1,651,357 Long-term development properties 14,751,565 14,148,262 16,895,604 Property and equipment, net 70,925 83,085 79,765 Investment in associates and joint ventures 81
Slide 22: Appendix III – Statement of Cash Flows
Appendix III – Statement of Cash Flows SAR in 000s FY 2017 FY 2018 FY 2019 Profit before Zakat 567,811 521,855 312,389 Adjustments for: Depreciation & Amortization 76,775 78,355 55,653 Provision for expected credit losses 0 0 2,000 End of service indemnities 5,129 4,122 4,313 Finance costs 441,523 5
Slide 23: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES. THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS P
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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