Emaar Properties (p.j.s.c) · DFM:EMAAR
Emaar Properties (p.j.s.c) — Shareholder Meeting (March 2008)
31 slides from Emaar Properties (p.j.s.c)'s shareholder meeting presentation, Mar 19, 2008
Slide 1: Emaar logo
Slide 2: 10th Annual General Meeting Chairman's Message to Shareholders
Emaar Properties PJSC 10th Annual General Meeting Chairman’s Message to Shareholders March 19, 2008
Slide 3: Welcome to the tenth annual general meeting
Good evening. Thank you all for joining us today. On behalf of the Board of Directors, I welcome you to the tenth annual general meeting of Emaar Properties PJSC.
Slide 4: Interacting with shareholders
It is not often that we have the opportunity to interact with all our shareholders on a one- to-one basis. Your presence indicates your interest in the company, and we are here to take you through Emaar’s performance in 2007.
Slide 5: 2007 was not an easy year
2007 was not an easy year: Concerns included the US subprime crisis, dollar depreciation, rising construction costs, and shortage of supplies & quality contractors.
Slide 6: 2007 was of great significance for Emaar
Despite this, for Emaar, 2007 was of great significance: Highlighted our dominant role globally, ranked in Financial Times Global 500 index and obtained high credit ratings from agencies.
Slide 7: Review of achievements last year
As they say, a river is formed, drop by drop. So, step by step, we are forging ahead in our mission to become one of the world’s most valuable companies. Here is a quick review of Emaar’s achievements last year.
Slide 8: Financial Performance
Financial Performance 17,566 18,000 16,000 14,006 14,000 AED Millions 12,000 10,000 8,361 Revenue 8,000 6,371 6,575 4,731 Net Profit 6,000 4,000 2,000 0 2005 2006 2007
Slide 9: Earnings Per Share
Earnings Per Share 2007 AED 1.08 2006 AED 1.05 2005 AED 0.85
Slide 10: Shareholder's Value
Shareholder’s Value 120 18 16.89 16 100 103 14 11.58 Shareholders' equity as per 80 12 AED per share audited financial statements AED billions 9.53 10 70 Net asset value (including FV of 60 land, assets and market value of 8 listed securites) 55 Net asset value per share 40 6 37 30 4 20 26 2 0 0 200
Slide 11: Land Bank (including associates)
Land Bank (including associates) Country 2007 2006 2005 UAE* 22.26 16.78 11.29 India 52.77 32.95 16.68 Kingdom of Saudi Arabia 172.76 171.23 3.23 Morocco 18.87 20.06 8.31 Egypt 14.73 14.64 0.57 Pakistan 6.51 6.35 - Syria 0.30 0.30 - Turkey 1.79 1.28 - Jordan 1.75 1.52 - USA & Canada 2.93 2.82 - Liby
Slide 12: Fair Value of Land (including associates)
Fair Value of Land (including associates) AED in Millions Country 2007 2006 2005 UAE (including land under JV with Bawadi) 34,312 30,470 29,166 India 58,713 26,529 64 Kingdom of Saudi Arabia 5,321 3,473 919 Morocco 821 645 - Pakistan 2,963 1,210 - Syria 431 239 - Turkey 480 280 - USA 2,281 2,566 - E
Slide 13: Cash Commitment for 2008
Cash Commitment for 2008 Country Additional Additional Commitment Commitment US$ Million AED Million Malls and Retail 653 2,400 Hospitality (including Armani) 490 1,801 Dividend payment 332 1,218 JV with Bawadi 109 400 Jordan 27 100 Syria 26 95 Morocco 59 217 Kingdom of Saudi Arabia 88 322 Turkey 17
Slide 14: Management Structure
Management Structure In 2007, Emaar inducted seven senior executives - CEOs, COOs and GMs to fuel the growth momentum of our international businesses. Our team of Regional Managing Directors expanded with specific geographical focus and to drive the expansion of the various markets.
Slide 15: Integrating International Acquisitions / Joint Ventures
Integrating International Acquisitions / Joint Ventures Execution with superior quality and timely delivery are a key focus - successfully deployed senior management from John Laing Homes in Dubai and India.
Slide 16: Turner International (ME) support
Turner International (ME) assisted in completing the construction of sales centres and “Street of Dreams” model homes for Morocco, Saudi Arabia, Egypt, India and Pakistan.
Slide 17: Emaar Design Centre
Emaar Design Centre Emaar Design Centre (EDC) in California set up for conceptualization, master-planning, development, landscaping and interior design. EDC will provide access to the abundant talent of the United States and high quality designs.
Slide 18: International Businesses
International Businesses Encouraging response to Emaar’s sales launches in international markets. More than 60% of units launched in International Markets (excluding US) were sold; 67% of the launches were in Q4, 2007. India and Morocco contributed positively to Emaar’s earnings in 2007.
Slide 19: Business Segments
Business Segments Dubai Mall and Dubai Marina Mall with Gross Leasable Area exceeding 3.9 million square feet will commence operations at the end of 2008. The malls have a total asset value of AED 9 billion. 3 hotels opened in 2007. 3 hotels will be opened in 2008. The Armani Hotel at Burj Dubai wil
Slide 20: Raffles International School and education plans
First Raffles International School opened in 2007. More schools to open in 2008. Plan to open University of Arts in the Middle East and North Africa region and the Subcontinent.
Slide 21: Bawadi JV
Bawadi JV In October 2007, Emaar joined hands with Bawadi LLC, a member of Tatweer, to develop 70 million sq ft of land; a AED 60 billion project. Joint venture created with equal equity participation by Bawadi LLC and Emaar.
Slide 22: Bawadi JV earnings and land bank
Earnings expected from 2009. The JV resulted in increasing Emaar’s Dubai Land bank by 76 per cent to 162 million square feet.
Slide 23: Conclusion
Conclusion Business does not proceed in a straight line. With due deliberation, we have set an ambitious yet attainable goal for Emaar: To be one of the world’s most valuable companies by 2010. By aiming higher, we hope to achieve bigger things.
Slide 24: Words of Sheikh Mohammed Bin Rashid Al Maktoum
In the words of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice- President and Prime Minister of the UAE and Ruler of Dubai:
Slide 25: Quote on embracing the new
“Those who neglect the new will remain at the back of the line; those who wait for luck to make things happen will be disappointed; those who let time manage their affairs will discover that time is a friend to those who work and take initiatives, but an enemy to those who depend on others and grow
Slide 26: Vision 2010
Today, Emaar has “Vision 2010” clearly in sight. We remain firmly committed to create unprecedented value for our shareholders with the transformation of Emaar as one of the world’s most valuable companies by 2010.
Slide 27: Emaar logo
Slide 28: Appendix
Appendix
Slide 29: Shareholder's value – NAV computation
Shareholder’s value – NAV computation (AED millions) 2007 2006 Book value Fair value Book value Fair value Cash and bank balances 4,727 4,727 2,329 2,329 Trade and other receivables 3,633 3,633 2,690 2,690 Development properties 16,194 48,859 11,121 35,440 Investments in associates 9,107 34,606 8,06
Slide 30: Fair value of Land included in Development Properties
Fair value of Land included in Development Properties (AED millions) 2007 2006 Fair value Emaar's Emaar's Emaar's FV in of land share in FV share in share of FV in Excess of (FV) of land Book value Excess of BV BV of land of land (BV) of land UAE 21,601 21,237 1,895 19,342 21,736 Egypt 12,671 12,671
Slide 31: Fair value of investment in Associates
Fair value of investment in Associates (AED millions) 2007 2006 Emaar's Book value FV in excess FV in excess share in of of investment of Fair investment in Associates investment in value in Associates Associates India (MGF) 23,571 3,758 19,813 8,819 Morocco 253 188 65 216 Egypt (subsidiary in 2007)
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