Emaar Properties (p.j.s.c) · DFM:EMAAR
Emaar Properties (p.j.s.c) — Emaar Malls PJSC — Investor Presentation (April 2019)
38 slides from Emaar Properties (p.j.s.c)'s investor presentation, April 2019
Slide 1: Emaar Malls PJSC Investor Presentation April 2019
MALLS Emaar Malls PJSC Leading Owner and Operator of Dominant Retail Assets Investor Presentation April 2019 0 | EMAAR MALLS
Slide 2: Disclaimer
Disclaimer Emaar Malls PJSC gives 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 presentation are made without responsibility o
Slide 3: Discussion Summary
Discussion Summary Investment Rationale Business Overview Business Strategy & Outlook FY & Q4 2018 Results Update Annexure 2 | EMAAR MALLS
Slide 4: Investment Rationale
Investment Rationale 3 | EMAAR MALLS
Slide 5: Emaar Malls at a Glance
Emaar Malls at a Glance Owns & Operates 363 Retail Assets High Operating Margin with GLA of 6.7 Mn sq. ft. EBITDA Margin2 – 81.5% Owner of The Dubai Mall – 136 Mn Footfalls (CAGR1 5%) Most Visited Mall in the World 93% Occupancy Rate Omnichannel Presence through Namshi Gross Rental Income Revenues 5
Slide 6: Strong Performance Track Record
Strong Performance Track Record Emaar Malls Delivered Consistent Growth in Challenging Market Environment over 2014 to 2018 Rental Income In AED Mn EBITDA & PAT Margin % 1 CAGR 8% EBITDA CAGR 10% PAT CAGR 14% 3,599 80.5% 81.5% 74.9% 75.2% 75.8% 3,227 3,323 2,992 63.0% 63.4% 2,694 55.3% 58.1% 50.1% 2
Slide 7: Consistently Outperformed the Retail Market
Consistently Outperformed the Retail Market Emaar Malls Outperformed Dubai Retail Market over 2017-2018 Retailer’s Flight to Quality - Emaar Malls are the top choice for retailers in a difficult environment ✓ Well-established presence, superior positioning, strong footfalls ✓ Benefits of Emaar’s int
Slide 8: Healthy Dividend Payout
Healthy Dividend Payout Strong Track Record and Proven Expertise To Generate Healthy, Predictable And Sustainable Returns In AED Bn 1.3 1.3 1.3 1.3 6% 79% 69% 5% 62% 58% 4% 4% 1 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 AED 5.2 Bn Cumulative Dividends Attractive Dividend Yield Robu
Slide 9: Comfortable Leverage and Credit Profile
Comfortable Leverage and Credit Profile Solid Credit Profile with very Comfortable Leverage and Significant Debt Coverage AED Million Dec 2017 Dec 2018 Key Ratios Dec 2017 Dec 2018 Debt 7,306 3,924 Debt / NAV 0.15 0.08 Cash 3,210 266 Debt / Equity 0.44 0.23 Net Debt 4,096 3,658 Debt / Total Assets 0
Slide 10: Best-in-Class Retail Assets, Trading at Discount to NAV
Best-in-Class Retail Assets, Trading at Discount to NAV Emaar Malls is Trading at Significant Discount to its NAV despite Superior Financial Metrics 133% -18% Market Cap (AED Bn) 34% 2019 Implied Cap Rate 1,3 -52% Premium / (Discount) to BV Emaar Malls 11.1% 35.9 23.3 US Peers 5.9% Premium / (Discou
Slide 11: Business Overview
Business Overview 10 | EMAAR MALLS
Slide 12: Preferred Gateway to Dubai's Consumerism for Aspiring Retailers and Brands
Preferred Gateway to Dubai’s Consumerism for Aspiring Retailers and Brands Diverse Retailing Formats with Strong Positioning & Experiential Retailing Along Superior Design & Architecture Established Presence with Leisure & Entertainment • Super-regional malls, regional • Prime urban location, strong
Slide 13: Established Portfolio with Diverse Retailing Formats
Established Portfolio with Diverse Retailing Formats… Total GLA Retail Assets Division Location & Catchment Key Highlights ('000 sq. ft.) • Downtown Dubai – • World renowned shopping & entertainment destination Super 500 acre flagship mega- • 1,200+ stores, leading retailers, marquee global brands T
Slide 14: With an Appealing Design & Architecture
…With an Appealing Design & Architecture 13 | EMAAR MALLS
Slide 15: Complemented by Fascinating Entertainment Avenues
…Complemented by Fascinating Entertainment Avenues At The Top Dubai Aquarium & Underwater Zoo VR Park World’s highest observation desk in Burj Khalifa Featuring world’s largest acrylic viewing panels Largest virtual reality park - 75,000 sq. ft. Kidzania Reel Cinemas Dubai Ice Rink Children’s edutai
Slide 16: Focus on Digitalisation for Enhanced Customer Service
Focus on Digitalisation for Enhanced Customer Service… Digital Initiatives taken at The Dubai Mall – ✓ New app introduced in 2018 ✓ Complimentary Delivery Service ✓ Leveraging customer data analytics to better understand customer buying behaviour, taste and preferences 15 | EMAAR MALLS
Slide 17: With Active Marketing Events for Better Customer Engagement
…With Active Marketing Events for Better Customer Engagement Emirates Skywards Miles Loyalty Program at The Dubai Mall • Members – 100,000 • Spend captured since inception – AED 1,150 Mn • Number of transactions since inception – 698,000 • Number of miles awarded since inception – 220 Mn 16 | EMAAR
Slide 18: Diversified Tenant Mix & Category Mix
Diversified Tenant Mix & Category Mix… Diverse Retailers And Marquee Brands With Many Having Exclusive Presence At Emaar Malls Category Mix - % GLA Food & Beverage, 18.6% Eyecare & Opticals, 0.8% Chocolatiers, 0.7% Pharmacy & Nutrition, 0.9% Books & Stationary, 1.4% Health & Beauty, 4.8% Entertainme
Slide 19: Active Tenant & Space Management with Healthy Lease Renewals
Active Tenant & Space Management with Healthy Lease Renewals… Active Tenant Management Portfolio Lease Expiry Schedule % GLA of main unit expiring leases • Meet changing retail trends and evolving consumer needs 27% 21% • Offer innovative & fresh retail concepts 17% 14% 13% • Tenant re-zoning & re-s
Slide 20: Steady Rental Income Growth, High Operating Profitability
…And Steady Rental Income Growth, High Operating Profitability Steady Rental Income Growth Robust Revenue Model Revenue Model: 8% 3,599 • Rent equals higher of base rent or turnover rent 3,323 3,227 10% • Base rent is increased at a pre-defined rate over the lease term of 2,992 12% 3-5 years 13% 11%
Slide 21: Omni-channel Presence Through Namshi
Omni-channel Presence Through Namshi • Market leader in large & growing online fashion in core GCC markets • Largest brand assortment with 634 brands and growing • Preferred fashion channel, young & trendy • High NPS (net promoter score) 849 Net Merchandise Value Gross Profit 50% 730 + 17% + 5% 555
Slide 22: Omni-channel Presence Through Namshi (Contd.)
Omni-channel Presence Through Namshi (Contd.) Geographical Mix Unrivalled Product Assortment in Middle East Other GCC 5% Prominent High Quality Fashion Brands UAE 25% KSA 70% Category Mix Sports Private Label 33% 12% Growing White Label Portfolio Gifts, Home & Beauty Men 9% 8% Women 38% 21 | EMAAR M
Slide 23: Sustainability Initiatives
Sustainability Initiatives Sustainability is an integral part of strategic and cultural transformation at Emaar Group Commitment to a sustainable future is focussed on three initiatives addressing energy, water and waste Our Sustainability Initiatives Energy • Preserving natural resources, reducing
Slide 24: Business Strategy & Outlook
Business Strategy & Outlook 23 | EMAAR MALLS
Slide 25: Multi-format Omni-channel Growth Strategy
Multi-format Omni-channel Growth Strategy Leverage Superior Asset Mix & Omni-channel Presence • Offer diverse retailing experience - super-regional malls, regional malls, specialty retail, community retail centers • Focus on constant innovations and improvements to deliver superior experiences • Str
Slide 26: Adopt Low-Risk Model For Future Expansions
Adopt Low-Risk Model For Future Expansions Projects under Emaar Malls GLA Expected Project Name Operate As Pure Rental Income Play (‘000 sq.ft.) Opening Meadows Village c. 95 H2 2019 • Pure Rental Income Play TDM Boulevard Expansion c. 110 H2 2020 • Focus on rental income growth and cash flow genera
Slide 27: New Expansions – Dubai Hills Mall
New Expansions – Strong Growth Potential Dubai Hills Mall – Regional Shopping Mall Superior Positioning & Offerings Strong Catchment • Outdoor high-street mall with superior design & architecture • Located between Sheikh Mohammad Bin Zayed Road and Al Khail Road • Differentiated offerings with over
Slide 28: New Expansions – Dubai Expo Mall
New Expansions – Strong Growth Potential Dubai Expo Mall – Regional Shopping Mall Superior Positioning & Offerings Strong Catchment • Over 190 retail & F&B outlets • Located close to Expo 2020 site • 1,000+ parking spaces • Close proximity to Al Maktoum international airport • Anchored by 9-screen C
Slide 29: FY & Q4 2018 Results Update
FY & Q4 2018 Results Update 28 | EMAAR MALLS
Slide 30: FY 2018 Key Highlights
FY 2018 Key Highlights Revenues EBITDA Net Profit AED 4,446 Mn AED 2,890 Mn AED 2,230 Mn +23% YoY +8% YoY +7% YoY Footfalls Namshi Revenues Occupancy 136 Mn AED 849 Mn 93% +5% YoY +15% YoY Namshi Namshi Gross Profit Net Merchandise Value AED 1,301 Mn Dividend AED 207 Mn Proposed1 for FY 2018 +17% Yo
Slide 31: Emaar Malls – Consolidated Result Highlights
Emaar Malls – Consolidated Result Highlights AED Million Emaar Malls Namshi Consolidated Revenue 3,599 849 4,446 Cost of revenue (440) (642) (1,082) Gross profit 3,159 207 3,364 % Gross margin 87.8% 24.4% 75.7% Sales, marketing, general & administration expenses (273) (251) (522) Gain on disposal of
Slide 32: Emaar Malls – Consolidated Result Highlights
Emaar Malls – Consolidated Result Highlights AED Million Q4 2018 Q4 2017 % Change 2018 2017 % Change Revenue 1,214 1,129 8% 4,446 3,629 23% Cost of revenue (304) (260) 17% (1,082) (626) 73% Gross profit 910 869 5% 3,364 3,003 12% % Gross margin 75.0% 77.0% 75.7% 82.8% Sales, marketing, general & adm
Slide 33: Emaar Malls Excl. Namshi – Consolidated Result Highlights
Emaar Malls Excl. Namshi – Consolidated Result Highlights AED Million Q4 2018 Q4 2017 % Change 2018 2017 % Change Revenue 973 914 6% 3,599 3,323 8% Cost of revenue (104) (104) - (440) (406) 8% Gross profit 869 810 7% 3,159 2,917 8% % Gross margin 89.3% 88.6% 87.8% 87.8% Sales, marketing, general & a
Slide 34: Emaar Malls Excl. Namshi – Consolidated Result Highlights
Emaar Malls Excl. Namshi – Consolidated Result Highlights Rental Income Breakup (AED Mn) Footfalls - Mn Occupancy % 3,599 94% 93% 3,323 10% 12% 130 136 11% 12% 4% 6% 75% 2017 2018 914 973 70% 11% 11% 11% 11% 5% 12% Key Highlights 66% 73% • Unveiled Fashion Avenue Expansion and Spring Q4 2017 Q4 2018
Slide 35: Emaar Malls – Consolidated Balance Sheet
Emaar Malls – Consolidated Balance Sheet 31-Dec-18 31-Dec-17 AED Million Carrying Value Fair Value Carrying Value Fair Value Assets Property plant and equipment & Investment Properties 22,390 53,285 21,921 53,959 Intangible Assets 569 569 581 581 Bank balances and cash 266 266 3,210 3,210 Trade rece
Slide 36: Annexure
Annexure 35 | EMAAR MALLS
Slide 37: Emaar Group Overview
Emaar Group 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 (19 ho
Slide 38: Thank You
Thank You EMAAR MALLS DICKENSON IR Name – Abhay Singhvi Name – Nilesh Dalvi / Mehul Mehta Email id - [email protected] Email id – [email protected] 37 | EMAAR MALLS
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