Emaar Properties (P.J.S.C) · DFM:EMAAR
Emaar Properties (P.J.S.C) — Emaar Properties — Q2 2021 Earnings Presentation
65 slides from Emaar Properties (P.J.S.C)'s earnings presentation, Aug 23, 2021
Slide 1: Prepared for the Future
Prepared for the Future Built on Strength, Prudence & Resilience. Investor Presentation August 2021 0 |
Slide 2: Disclaimer
Disclaimer Emaar Properties PJSC, for themselves and for Emaar Group, give notice that: The particulars of this presentation do not constitute any part of an offer or a contract. Given that the presentation contains information based on forecasts and roll outs, all statements contained in this prese
Slide 3: Discussion Summary
Discussion Summary Investing In Emaar Expanding Footprint in UAE & International Markets Business Strategy & Outlook Q2 & H1 2021 Results Update Annexure 2 |
Slide 4: Investing In Emaar
Investing In Emaar 3 |
Slide 5: Emaar Purpose & Business Model
Emaar Purpose & Business Model An Enduring Enterprise Our Business Model: driven by: We operate a business model that puts risk mitigation at the centre of our core strategies. We create value by providing high quality and highly desirable environments, • Vision to redefine engineering which help ou
Slide 6: A Globally Admired Real Estate Company
A Globally Admired Real Estate Company CREATOR OF WORLD- GLOBAL RANKINGS1 IN PROVEN EXECUTION STRONG REVENUE VISIBILITY RENOWNED ARCHITECTURES LISTED REAL ESTATE SPACE c. 115,0004 GLOBALLY AED 45.1BN GLOBALLY RANKED #1 BURJ KHALIFA c. 73,1004 in UAE AED 27.1BN in UAE Best regarded company among real
Slide 7: Diversified Real Estate Play In UAE & International Markets
Diversified Real Estate Play In UAE & International Markets Resilient Business Model With Strong Growth Potential Total Revenues In AED Mn 16% 25,689 ✓ Consistent growth delivered in difficult market 23,911 environment post 2014 oil price crash 18,548 17,959 15,118 15,412 12,936 ✓ Good business mix
Slide 8: Strong Balance Sheet
Strong Balance Sheet Solid Credit Profile with very Comfortable Net Debt-to-Equity and Debt Coverage AED Million H1 2021 Comfortable Debt Maturity Profile – Jun 2021 Debt 22,333 Cash 8,583 2 Net Debt 13,750 7,654 Equity 65,391 4,666 Total Assets 122,873 3,932 2 3,807 2,132 Key Ratios H1 2021 161 Deb
Slide 9: Emaar In “The Value Zone”
Emaar In “The Value Zone” Emaar Properties is Trading at Significant Discount to its NAV despite Superior Financial Metrics 57% -46% Market Cap (AED Bn) -48% Premium / (Discount) to BV 52.0 -72% 29.0 2 Premium / (Discount) to NAV 1 2014 H1-2021 8 | 1) Market valuation based on share price as at 4th
Slide 10: Sum of The Parts Valuation Analysis
Sum of The Parts Valuation Analysis Emaar’s market cap 1 Emaar’s share of Listed companies > AED 29 Bn AED 40 Bn 39.7 12.1 Current share price implies negative valuation given 39.7 to Emaar’s 21.8 unlisted businesses and deep holding company 2.2 -10.7 discount 3.3 0.2 Emaar Emaar Dev. Emaar Malls Em
Slide 11: Expanding Footprint in UAE & International Markets
Expanding Footprint in UAE & International Markets 10 |
Slide 12: Developer of Iconic Master Plans Transforming Dubai
Developer of Iconic Master Plans Transforming Dubai… Downtown Dubai Dubai Marina 2005 Today 2003 Today ✓ 500-acre Flagship Mega-Development ✓ Largest Man-Made Marina1 (3.5 sq.km.) development of ✓ One of the Most Visited Destinations In The World its kind ✓ Includes World’s Tallest Building & World’
Slide 13: Having Stood Multiple Tests of Time
…Having Stood Multiple Tests of Time Emaar’s Unique Proposition of Integrated Masterplans and Superior Quality helped to Deliver Consistent Performance in UAE Emaar’s Sales1 – Ahead of the Competition (~3x in 2020) In AED Bn 18.0 14.4 14.4 14.9 ✓ Displayed strong sales traction, despite difficult ma
Slide 14: Renowned For Its Iconic Retail Assets
Renowned For Its Iconic Retail Assets… The Dubai Mall – Most Visited Mall in the World ✓ World renowned shopping & entertainment destination ✓ 4.3 Mn sq. ft. GLA1 (incl. Fashion Avenue Expansion) ✓ 92% Occupancy1 ✓ 1,200+ stores with leading retailers and marquee global brands ✓ Resilient footfalls
Slide 15: Delivering Robust Growth
…Delivering Robust Growth Emaar Malls Delivered Consistent Growth over 2012 to 2019 Robust Growth in Footfalls… ✓ Preferred gateway to Dubai’s consumerism for aspiring retailers and brands 6,095 5,969 6,090 5,158 5,295 5,371 5,423 5,419 5,368 ✓ Urban lifestyle destination and unique retail experienc
Slide 16: Complemented By Immersive Entertainment Avenues
…Complemented By Immersive Entertainment Avenues Entertainment Business: Major Tourist Attractions driving Footfalls at The Dubai Mall Robust Growth & Superior Margins In AED Mn ✓ At The Top, world’s highest observation desk 66.6% 67.7% 68.6% 62.6% 58.7% 58.9% 59.4% ✓ Dubai Aquarium & Underwater Zoo
Slide 17: Hospitality Assets Deliver Steady Performance
Hospitality Assets Deliver Steady Performance Steady Performance in a Difficult Market Environment Emaar Hotels: Hospitality Business: Resilient & Profitable In AED Mn ✓ Able to maintain healthy EBITDA margin in a weak market with operating costs under control 37.9% 30.8% 33.7% ✓ Hospitality sector
Slide 18: Replicating Our Success In International Markets
Replicating Our Success In International Markets Leverage Emaar’s Strength And Unlock the Land Bank Potential in Key International Markets Development Retail Entertainment Hospitality ✓ c. 41,800 units sold & c. 27,400 units ✓ Own & operate iconic ✓ Launch entertainment ✓ Adopt an asset-light delive
Slide 19: Business Strategy & Outlook
Business Strategy & Outlook 18 |
Slide 20: Top Priorities
Top 3 Priorities Maintain Leadership Position in Our Markets Focus on Execution & Cash Flow Generation Focus on Maximising Shareholder Returns 19 |
Slide 21: UAE Development Strategy
UAE Development Strategy: Consolidate and Prepare for the Next Growth Phase Leverage the Strength Marketing to Well-planned Execution Product Innovations of Master Developments International Customers & Delivery • Leverage on the existing • Unique product offering for • Targeting international • Tim
Slide 22: UAE Retail Strategy: Multi-format Omni-channel Growth Strategy
UAE Retail Strategy: Multi-format Omni-channel Growth Strategy Leverage Superior Asset Mix Robust Retail Space Growth • Offer diverse retailing experience - super-regional malls, • Well-planned extensions at The Dubai Mall to enhance regional malls, specialty retail, community retail centers custome
Slide 23: UAE Retail Strategy: Adopt Low-Risk Model For Future Expansions
UAE Retail Strategy: Adopt Low-Risk Model For Future Expansions Operate As Pure Rental Income Play • Pure Rental Income Play Projects under Emaar Malls • Focus on rental income growth and cash flow generation GLA Expected Project Name (‘000 sq.ft.) Opening • Minimal Development Risk • Execute extens
Slide 24: Sustainability
Sustainability Environment, Social & Governance 23 |
Slide 25: Enhancing Focus on ESG
Enhancing Focus on ESG… Engaging the future by integrating ESG criteria into all decisions and transforming assets to improve their environmental and social impacts. 1 ENVIRONMENT ✓ Climate Strategy & Portfolio Resilience, Sustainable Operations, Energy and Emissions 2 SOCIETY ✓ Diversity & Inclusio
Slide 26: Enhancing Focus on ESG: Environment focus
Enhancing Focus on ESG: Environment focus Working on becoming a leader in sustainability in the real estate industry, aligned ourselves 1 with Sustainable Development Goals (SGDs) INDUSTRY, RESPONSIBLE AFFORDABLE CLEAN CLEAN WATER INNOVATION AND CONSUMPTION AND CLIMATE ACTION ENERGY INFRASTRUCTURE P
Slide 27: Enhancing Focus on ESG: Social focus
Enhancing Focus on ESG: Social focus Committed to working closely with the community, uphold the highest standards of living, 2 our people are a driving force behind our success Catering to society and putting Healthcare & Safety first ▪ Donated AED 100 million to the Community Solidarity Fund for C
Slide 28: Enhancing Focus on ESG: Governance focus
Enhancing Focus on ESG: Governance focus Strong corporate governance ensures accountability and the highest level of integrity in 3 management practices across our organisation ANTI BRIBERY AND CODE OF WHISTLEBLOWER NO GIFT POLICY ANTI CORRUPTION CONDUCT POLICY POLICY Our Anti-Bribery and Corruption
Slide 29: Q2 & H1 2021 Results Update
Q2 & H1 2021 Results Update 28 |
Slide 30: H1 2021 Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development H1 2021 Key Highlights Overall Property Sales Revenues EBITDA at AED 16.8 Bn AED 12.5 Bn AED 4.1 Bn (229% increase Vs. H1’20) UAE Property Sales at AED Net Profit 24% Recurring Revenues 13.8 Bn AED 1.6 Bn 41
Slide 31: Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Key Highlights AED Million Q2 2021 Q2 2020 % Change H1 2021 H1 2020 % Change Group Property Sales 9,727 1,233 689% 16,842 5,120 229% Revenue 6,506 2,892 125% 12,500 8,220 52% Gross Profit 2,737 433 532% 5,41
Slide 32: Segment Analysis
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Segment Analysis Segment Wise Revenues (AED Mn) Revenue Share % EBITDA Share % +52% 5% 6% 12,500 3% 357 5% 5% 609 16% 2,008 AED AED 12,500 Mn 4,115 Mn 55% - 7% 25% 1,749 8,220 14% 62% 383 + 38% 441 1,587 4%
Slide 33: Historical Trend
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Historical Trend In AED Mn Revenues Gross Profit CAGR* 16% CAGR* 13% 25,689 12,898 23,912 11,427 18,547 17,959 9,295 15,117 7,960 13,098 7,035 6,533 2015 2016 2017 2018 2019 2020 * 2015 2016 2017 2018 2019 2
Slide 34: Balance Sheet & Cash Flow Overview
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Balance Sheet & Cash Flow Overview Balance Sheet Overview Cash Flow Overview In AED Mn Total: AED 122,873 Mn Bank Balances & Cash 7% (1,389) 16% Trade & Other Payables Trade & Other 4,750 (2,407) 24% Receiva
Slide 35: Emaar Development – Key Highlights
Consolidated UAE Development International Emaar Malls Emaar Hospitality Results Development Emaar Development – Key Highlights 1 AED Million H1 2021 H1 2020 % Change H1 2021 Revenue Breakup Property Sales 13,825 4,372 216% Revenue 7,755 4,818 61% 23% Gross Profit 2,951 1,787 65% AED Margin (%) 38.1
Slide 36: UAE Development – Current Project Status
Consolidated UAE Development International Emaar Malls Emaar Hospitality Results Development UAE Development – Current Project Status 100% Owned Developments 100% Consolidated JV JV/JDAs with 50% Share Others Ras Al Khaimah (100% owned land Downtown Arabian Dubai Emaar Dubai Mina Dubai Emaar Dubai 4
Slide 37: Emaar Development – Historical Trend
Consolidated UAE Development International Emaar Malls Emaar Hospitality Results Development Emaar Development – Historical Trend In AED Mn Revenues Gross Profit 6,700 15,433 12,746 5,061 8,863 9,758 3,761 3,478 6,899 2,861 5,253 2,395 2015 2016 2017 2018 2019 2020 * 2015 2016 2017 2018 2019 2020* E
Slide 38: International Development – Key Highlights
Consolidated UAE Development International Emaar Malls Emaar Hospitality Results Development International Development – Key Highlights International Sales – Units Released Revenue Backlog 1 Sales Booked c. AED 17.5 Bn c. AED 3 Bn 94% 6% 15,765 To be recognized over in H1’21 next 3-4 years (59% incr
Slide 39: International Development – Key Highlights (Emaar Misr)
Consolidated UAE Development International Emaar Malls Emaar Hospitality Results Development International Development – Key Highlights Emaar Misr – Development1 Key Highlights AED Million EGP Million • Delivered 622 units in H1’21 H1 2021 H1 2020 % Change H1 2021 H1 2020 % Change • Property sales g
Slide 40: Emaar Malls – Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Emaar Malls – Key Highlights1 Excl. Namshi AED Million H1 2021 H1 2020 % Change AED Million H1'21 H1'20 % Change Revenue 2,008 1,587 27% GLA (Mn sq. ft.) 6.8 6.7 2% Gross Profit 1,396 1,075 30% Occupancy Rat
Slide 41: Emaar Malls (Excl. Namshi) – Historical Trend
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Emaar Malls (Excl. Namshi) – Historical Trend In AED Mn Rental Income EBITDA 3,599 3,647 3,227 3,323 2,934 2,952 2,992 2,676 2,447 2,250 2,192 1,407 1 1 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019
Slide 42: Namshi – Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Namshi – Key Highlights Namshi Revenues1 (AED Mn) Namshi Key Statistics2 CAGR 24% 1,316 Net Merchandise Value Gross Margin + 4% 34% 1,028 849 730 Active Customers Online Traffic + 12% + 29% 555 440 Number of
Slide 43: Emaar Hospitality – Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Emaar Hospitality – Key Highlights AED Mn H1'21 H1'20 % Change H1 2021 Revenue Breakup Occupancy Rate (%)* 63% 46% RevPar (AED)* 361 278 30% Room Revenue 213 156 37% 35% 41% Room Revenue F&B and Other Revenu
Slide 44: Annexure
= AVY 7 SE he he del wT) = ana HTT Te wir [TIRE Annexure
Slide 45: Divisions Overview
Divisions Overview UAE Entertainment & International Operations Emaar Malls Emaar Hospitality Development Leasing • Leading master plan • Active in 10 targeted high • Emaar Malls PJSC is • Hotel owner and operator • Provider of premium developer in Dubai growth countries listed on DFM since (28 hote
Slide 46: UAE Development – Projects Overview
UAE Development – Projects Overview Wholly-owned projects Downtown Dubai Arabian Ranches Dubai Marina Emirates Living Emaar Beachfront The Valley Garden All under-construction Expansion of the Two waterfront Green-focused An exclusive residential A gated community projects (including current Arabian
Slide 47: UAE Development – Projects Overview
UAE Development – Projects Overview 100% Consolidated JV JVs/JDAs with 50% share Dubai Hills Estate Mina Rashid Dubai Creek Harbour Emaar South Zabeel Square Joint Venture between Joint Venture between Joint Development Joint Venture between Joint venture between Emaar Emaar and Meraas Holding Emaar
Slide 48: UAE Development – Projects Under Development
UAE Development – Projects Under Development % Remaining Collections of Sold Value Project Value Area Launch % Collected of % Completion % Gross Margin Till Post Project (100% Owned) Units % Unit Sold % Value Sold Total (AED Mn)(1) (SQF) Period sold value June-21 June-21² Handover Handover Downtown
Slide 49: UAE Development – Projects Under Development
UAE Development – Projects Under Development % Remaining Collections of Sold Value Project Value Area Launch % Collected of % Completion % Gross Margin Till Post Project (Joint Ventures) Units % Unit Sold % Value Sold Total (AED Mn)(1) (SQF) Period sold value June-21 June-21² Handover Handover Dubai
Slide 50: UAE Development – Projects Under Development
UAE Development – Projects Under Development % Remaining Collections of Sold Value Project Value Area Launch % Collected of % Completion % Gross Margin Till Post Project (Joint Ventures) Units % Unit Sold % Value Sold Total (AED Mn)(1) (SQF) Period sold value June-21 June-21² Handover Handover Dubai
Slide 51: UAE Development – Completed Projects
UAE Development – Completed Projects1 Project Value Area % Collected of sold % Remaining Collections Project (100% Owned) Units % Unit Sold % Value Sold (AED Mn)(2) (SQF) value of Sold Value Downtown Dubai 5,132 20,497 7,593,935 98% 96% 96% 4% Blvd Heights 550 1,808 773,089 91% 87% 83% 17% Address S
Slide 52: UAE Development – Completed Projects
UAE Development – Completed Projects1 Project Value Area % Collected of sold % Remaining Collections Project (Joint Ventures) Units % Unit Sold % Value Sold (AED Mn)(2) (SQF) value of Sold Value Dubai Hills Estates 6,316 21,934 19,899,709 97% 97% 81% 19% Park Heights I 270 317 216,135 93% 87% 66% 34
Slide 53: UAE Development – Location of Development Projects
UAE Development – Location of Development Projects 53 |
Slide 54: UAE Development – Expected Delivery Schedule (Units)
UAE Development – Expected Delivery Schedule (Units) Under Development Delivery Schedule Under Completed Development H1'2021 H2'2021 2022 2023 2024 - A - Emaar Development (fully consolidated) Downtown* 14,216 7,494 - 478 3,202 3,814 - Emaar Beachfront - 3,113 - 457 1,083 - 1,573 Dubai Marina 4,450
Slide 55: UAE Development – Land Bank Details
UAE Development – Land Bank Details Land Bank Evolution through Investments & Strategic Partnerships Year Area 2012 Arabian Ranches II (million sq ft) GFA BTS 2011- 2020 Multiple CAGR 2013 Dubai Hills Estate ~22x ~45% 2014 Dubai Creek Harbour 2015 Emaar South 369 369 2016 Downtown Views, Ras Al Khai
Slide 56: International Development – Expected Delivery Schedule
International Development – Expected Delivery Schedule Under To be Cumulative Country Entity Completed Jul-Dec'21 2022 2023 2024 2025 Development developed till Jun 2021 Subsidiaries Emaar Misr 8,703 7,052 7,771 8,647 921 2,851 1,987 1,283 495 Emaar Middle 936 - - 760 50 57 69 - - East Emaar Turkey
Slide 57: International Development – Land Bank Details
International Development – Land Bank Details Gross Land Area International Land Bank (Mn SQ. FT.) Saudi Arabia (Emaar Economic City) * 1,119.41 Saudi Arabia (Emaar Middle East) 2.86 India (Emaar India) 150.31 Egypt 49.72 Pakistan 10.96 Turkey 5.25 Lebanon 2.00 Total Key International Markets 1,340.
Slide 58: JV / JDA Accounting Treatment
JV / JDA Accounting Treatment Accounting P&L Balance Sheet Impact on Return on Capital Dubai Hills – • 100% consolidation • 100% consolidation • Neutral impact on ROCE Consolidation • 50% Minority Interest • 50% Minority Interest Mina Rashid – • 100% consolidation • 100% consolidation • Neutral impa
Slide 59: Hospitality Group – Current Portfolio
Hospitality Group – Current Portfolio Residences in Hotel Hotel Management Company Classification Keys Operational Pool (5) Emaar Hospitality Group Hote l Portfolio Dubai Armani Hotel at Burj Khalifa Armani Hotel - Dubai 5 Star 160 23 2010 Address Downtown Dubai TAH&R(2) 5 Star 220 193 2008 Address
Slide 60: Hospitality Group – Hotels / Service Apartments Under Development
Hospitality Group – Hotels / Service Apartments Under Development1 Serviced Estimated Hotel Location Launch Keys 2 Apartments Completion Rove City Walk City Walk 2018 564 3 NA 2021 Vida Dubai Marina Dubai Marina 2017 158 360 2022 Vida Dubai Mall Downtown 2017 195 380 2022 1) Represents hotels / serv
Slide 61: Fair Valuation Overview – GAV By Segment
Fair Valuation Overview – GAV By Segment December 2020 Book Value Split December 2020 Fair Value SalesSplit Sales 1% 4% 3% 1% 6% 5% 37% 22% 43% 34% 24% 20% Total AED 118 Bn Total AED 179 Bn UAE Development International Development UAE Development International Development Retail & Leasing Hospitali
Slide 62: Fair Valuation Overview – GAV By Segment (Cont’d)
Fair Valuation Overview – GAV By Segment (Cont’d) GAV: Development Properties GAV: Fixed Assets 2020 2019 2020 2019 Book Fair Book Fair Book Fair Book Fair AED Million AED Million Value Value Value Value Value Value Value Value UAE 21,962 37,586 22,365 36,644 Hotels & Egypt 5,415 8,778 4,102 7,523 5
Slide 63: Fair Valuation Overview – NAV Table
Fair Valuation Overview – NAV Table In AED Mn 2020 2019 Book Value Fair Value Book Value Fair Value Cash and bank balances 6,271 6,271 6,796 6,796 Trade and Other Receivables 27,277 27,277 25,815 25,815 Development Properties 40,933 64,952 41,704 63,745 Investment in Associates and Joint Ventures 4,
Slide 64: Group Structure
Group Structure* EMAAR PROPERTIES PJSC (3) DOMESTIC REAL ESTATE INTERNATIONAL MALLS HOSPITALITY GROUP OPERATIONS LEISURE & ENTERTAINMENT OTHERS Limited Companies (1) Only built projects are held by Emaar Development and JV partners. Build to lease and operate (BTL/BTO) projects are directly held by
Slide 65: Thank You
Thank You EMAAR PROPERTIES Name – Abhay Singhvi Email id - [email protected] 65 |