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

Dar Al Arkan Real Estate Development — Q3 2020 Earnings Presentation

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

  1. Slide 1: Investor Presentation Q3 2020

    Investor Presentation Q3 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 20 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 2019 2020F* 2021F* as a result of the Covid-19 lockdowns, the length -2% 80 71.1 and magnitu

  5. Slide 5: 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  Population growth of 2.5% per year.  Chronic under supply of residential ho

  6. Slide 6: Q3 Transaction Values Suffered from Seasonality and VAT Increase

    KSA Real Estate Sector Overview Q3 Transaction Values Suffered from Seasonality and the VAT Increase, With VAT Lifted, 2020 is Expected to Deliver a Strong Q4 and Beat 2018 Totals 500 380 410 400 321 140.1 300 122.5 249 224 110.1 209 166 166 200 126 79.7 99.1 131 71.1 113 63.7 257.2 270.0 38.9 100 5

  7. Slide 7: Pricing Continued to Be Robust Year Over Year

    KSA Real Estate Sector Overview Pricing Continued to Be Robust Year Over Year, While Quarterly Numbers Are Showing Sequential Moderation Post the VAT Increase in Q3 KSA Real Estate Price Index (YoY) KSA Real Estate Price Index (QoQ) 2.0% 0.9% 1.0% 0.5% 1.2% 0.4% 0.7% 0.3% 1.0% 0.5% -0.1% 0.0% -0.4%

  8. Slide 8: Key Business Indicators Overview

    2 | Key Business Indicators Overview

  9. Slide 9: Q3 2020 – Key Business Indicators

    Q3 2020 – Key Business Indicators Investment In Revenues (LTM) -35% EBITDA (LTM) -6% Development Properties (LTM) -3% SAR 2,290 mn SAR 748 mn SAR 4,012 mn (Q3 2019 : SAR 3,497 mn) (Q3 2019 : SAR 800 mn) (Q3 2019 : SAR 4,148 m) Gross Debt/ Cash And Bank Book Value Per Share Capitalization SAR 5,884 m

  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 19.2 bn.  DAAR has a strong pipeline of projects across the Kingdom and Europe totaling 12.9 mn sqm. Real Estate Properties 57% Break up - SAR bn 33% Investments in Juman* Shams Ar Riyadh Lands, 12.8 Project Lands

  11. Slide 11: Financial Performance Overview

    3 | Financial Overview Performance 11

  12. Slide 12: Financial Performance – Q3 2020 Profitability

    Financial Performance – Q3 2020 Profitability Quarterly Revenues (SAR mn) Gross Profit (SAR mn) & Margin (%) 1,200 988 350 41% 45% 928 28% 899 22% 1,000 846 824 841 251 25% 34% 280 17% 18% 19% 36% 32 213 27% 800 36 37 202 35 34 593 34 210 165 159 160 162 27% 152 26 156 600 464 23 955 37 391 140 25 1

  13. Slide 13: Financial Performance – Q3 2020 Cash Flow

    Financial Performance – Q3 2020 Cash Flow Cash Flow – Q3 2020 (SAR mn) Income / Sources of Cash Uses of Cash / Expenses 7,000 4 173 590 175 1 6,000 600 391 5,000 4,000 5,884 3,000 5,486 2,000 1,000 - Starting Cash Revenue New Debt Working Capital Debt Opex Investment in Maintenance Ending Cash Repay

  14. Slide 14: Financial Performance – Q3 2020 Debt

    Financial Performance – Q3 2020 Debt Gross Debt Vs Net Debt (SAR mn) Debt* / Capitalization 40% 12,000 34% 34% 10,369 32% 9,774 29% 9,163 26% 30% 26% 9,000 7,832 6,747 6,663 6,430 5,782 5,699 5,486 5,884 4,880 20% 6,000 3,950 5,160 4,903 4,710 3,472 3,888 10% 15% 15% 15% 15% 3,000 14% 3,882 4,283 4,

  15. Slide 15: Overview of Assets Portfolio

    4 | Overview of Assets Portfolio

  16. Slide 16: Shams Ar Riyadh – Key Facts

    Residential & Commercial Development Projects Shams Ar Riyadh – Key Facts Location - Situated in the Al-Ammariyah district (King Khalid Road), part of the growing northwest corridor of Riyadh, Shams Ar Riyadh is close to the heart of the city and is located just 19 km from KKI Airport and 9 km from

  17. Slide 17: Residential & Commercial Development Projects

    Residential & Commercial Development Projects Bosnia Projects Jeddah Projects Eastern Province Projects I Love Florence, Dubai - The site is situated located in Ravne, - The site is situated 12 kms from CBD - The project is located in the Eastern - The I Love Florence Tower project is Vareš, 38 km o

  18. Slide 18: 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

  19. Slide 19: 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:  92% occupancy achieved  Cinema multiplex with 15 screens opened in 2019.  Bow

  20. Slide 20: Appendix

    DAR AL ARIKAN uL_<yXl jl> 5 Appendix

  21. Slide 21: Appendix I – Statement of Profit or Loss

    Appendix I – Statement of Profit or Loss SAR in 000s FY 2018 FY 2019 YTD 2019 YTD 2020 Q3 2019 Q3 2020 Revenue 6,412,265 3,491,856 2,650,934 1,448,599 899,408 391,235 Cost of revenue (5,355,114) (2,667,416) (2,039,366) (970,881) (648,844) (229,596) Gross profit 1,057,151 824,440 611,568 477,718 250,

  22. Slide 22: Appendix II – Statement of Financial Position

    Appendix II – Statement of Financial Position SAR in 000s FY 2018 FY 2019 Q3 – 2019 Q3 - 2020 Investment properties, net 1,693,141 1,651,357 1,662,399 1,618,395 Long-term development properties 14,148,262 16,895,604 14,764,037 17,218,306 Property and equipment, net 83,085 79,765 82,366 74,308 Invest

  23. Slide 23: Appendix III – Statement of Cash Flows

    Appendix III – Statement of Cash Flows SAR in 000s FY 2018 FY 2019 YTD – 2019 YTD - 2020 Profit before Zakat 521,855 312,389 241,369 4,777 Adjustments for: Depreciation & Amortization 78,355 55,653 40,620 42,393 Provision for expected credit losses 0 2,000 0 0 End of service indemnities 4,122 4,313

  24. Slide 24: 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

  25. Slide 25: Thank you

    Investor Relations Riyadh – Saudi Arabia Thank you Tel: +966 11 206 9888 Ext:1670 [email protected]

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