Emaar Properties (P.J.S.C) · DFM:EMAAR
Emaar Properties (P.J.S.C) — Investor Day (November 2010)
45 slides from Emaar Properties (P.J.S.C)'s investor day presentation, Nov 16, 2010
Slide 1: Standard Chartered Bank Investor Day
Emaar Properties PJSC Standard Chartered Bank Investor Day November 16th, 2010 © Emaar 2008
Slide 2: Emaar Overview
EMAAR OVERVIEW © Emaar 2008 2
Slide 3: Emaar at a Glance
EMAAR at a Glance Emaar Properties is the largest publicly-listed property developer in the MENA region Market Cap(1): AED 22.2bn (US$6.0 bn) Revenues: FY 2009 AED 8.4 bn (US$2.29 bn 9M2010 AED 8.3 bn (US$ 2.27 bn) Net Operating Profit: FY 2009 AED 2.3 bn (US$ 0.63 bn) 9M2010 AED 2.34 bn (US$ 0.64 b
Slide 4: Emaar's Strategy & Goals
EMAAR’s Strategy & Goals Business Strategy: To replicate our Dubai business model and practices in international markets, leveraging our execution capabilities and competencies in design, project management and distribution/sales. In the UAE we have over 20* million sqm of land. Our international la
Slide 5: Emaar's Business Strategy
EMAAR’s Business Strategy • Recognising the rapidly changing global economic conditions over the past 18 months, management will focus on a number of areas to ensure that the Group has sufficient financial flexibility and growth capital to meet the medium term goals set. • Emaar’s medium term strate
Slide 6: Group 9M-2010 Performance Highlights
EMAAR’s Group 9M-2010 Performance Highlights Performance highlights/Key Achievements during 9M-2010 included: • Burj Khalifa: Official opening of Burj Khalifa (Tallest Tower in the world) in January 2010. • Armani Hotel: Official opening of the first Armani Hotel in Burj Khalifa • Dubai RE: Hand ove
Slide 7: Group Financials 9M-2010 Highlights Con't
EMAAR’s Group Financials –9M-2010 Highlights Con’t Profitability | Stable performance in tough market conditions • Revenues for 9M-10 were AED 8,320m (versus 9M-09 AED 5,429m) • Net Operating Profit for 9M-10 were AED 2,343m (versus 9M-09 AED 1,401 m) • Gross Margins maintained at over 40% (9M-10: 4
Slide 8: Emaar Key Group Divisions
EMAAR Key Group Divisions Property Property Malls Hotels Development Development and Resorts & Healthcare UAE International Retail Hospitality • Market • Active in 16 • Current retail • Developer, owner • Operating leading targeted high space of over and manager of Healthcare developer in growth cou
Slide 9: Strong Record of Execution
Strong Record of Execution Cumulative Number Residential Units Delivered © Emaar 2008 9
Slide 10: Investment Highlights
INVESTMENT HIGHLIGHTS © Emaar 2008 10
Slide 11: Shareholder's Value – NAV Computation
Shareholder’s Value – NAV Computation (AED million) 2009 2008 (restated) Book value Fair value Book value Fair value Cash and bank balances 2,267 2,267 5,393 5,393 Trade and other receivables 4,192 4,192 4,569 4,569 Development properties 31,076 50,556 23,566 57,907 Investment in associates 7,861 8,
Slide 12: Fair Value of Development Properties
Fair Value of Development Properties (AED million) 2009 2008 (restated) Book value Fair value Book value Fair value UAE 20,436 27,481 14,754 34,496 Egypt 4,210 9,361 3,304 10,427 KSA 1,570 3,219 1,397 2,071 Turkey 2,245 2,482 2,354 2,809 India 73 2,935 69 3,170 Pakistan 523 1,400 453 2,448 Syria 392
Slide 13: Fair Value of Investment Properties
Fair Value of Investment Properties (AED million) 2009 2008 Book value Fair Value Book value Fair Value The Dubai Mall & The Dubai Marina Mall 7,075 11,166 7,156 13,371 Emaar Business Square 373 1,427 405 1,488 Downtown Dubai (Souk Al Bahar and other retail locations) 403 894 394 1,102 Gold & Diamon
Slide 14: Fair Value of Fixed Assets
Fair Value of Fixed Assets (AED million) 2009 2008 Carrying Carrying Fair Value Fair Value value value Hotels, Convention centre & Service Appartments 2,762 3,339 1,770 2,897 Emaar Business Park 113 541 141 660 District Cooling Plant 406 406 382 382 Leisure, Entertainment, Community & Medical centre
Slide 15: Regional Operations
REGIONAL OPERATIONS © Emaar 2008 15
Slide 16: Property Development: UAE
Property Development: UAE • Government Support: Historic land grants and 32% shareholding • Large Land Bank:* 20 million sqm • Partnership with Quality Arabtec, Nasa Multiplex, Samsung, Al Developers: Futtaim Carillion. • Established Reputation: Timely deliveries of high quality properties • Track R
Slide 17: Dubai RE – Key Strengths
Dubai RE – Key Strengths • All Dubai RE projects are under construction, with no speculative, Dubai RE development projects included within forecasts. The majority of developments under construction will complete within the next 2 years • Pre-sales model utilised, with the cash inflows from customer
Slide 18: Regional Business Highlights
Regional Business Highlights Total Under To be Deliveries Deliveries Deliveries Deliveries Deliveries Projects Freehold Developed Construction Developed 2009 2010 2011 2012 2013 Units/Area Downtown Dubai 94 Development 24,740 7,852 2,016 14,872 1,501 1,047 320 7 749 DD Commercial Units (Sq.ft. area)
Slide 19: International Operations
INTERNATIONAL OPERATIONS © Emaar 2008 19
Slide 20: International RE – Unit Sales to Date
International RE – Unit Sales to Date Emaar has achieved an overall sales level of 78% in its International business Units Unit Sale % sales Country Entity Released achieved achieved Egypt Emaar Misr for Development S.A.E. 1,710 1,395 82% KSA Emaar Middle East 425 279 66% Pakistan Emaar DHA Islamaba
Slide 21: International Business Highlights
International Business Highlights Country Entity Units Units Under To be Deliveries Deliveries Deliveries Deliveries Deliveries Completed Development Developed 2009 2010 2011 2012 2013 Oct 10-2013 Subsidiaries Egypt Emaar Misr for - 1,710 4,662 - 81 655 1,069 1,106 KSA Emaar Middle East - 425 848 -
Slide 22: International RE – Key Strengths
International RE – Key Strengths • Successful expansion of Emaar’s RE development model to several International locations. This has enabled Emaar to both grow and at the same time, limit concentration risk to the Dubai real estate market • For the International RE developments, Emaar have purchased
Slide 23: Segments
SEGMENTS © Emaar 2008 23
Slide 24: Malls – Key Strengths
Malls – Key Strengths • Significant Gross Leasable Area (“GLA”) – 2009 saw all of the Dubai located Malls assets opened, representing 5.28m SqFt of GLA, with GLA Occupancy at 89% across all assets (Dec 2009) and significant interest on remaining units resulted from success of The Dubai Mall. In term
Slide 25: Malls – Key Strengths (Cont')
Malls – Key Strengths (Cont’) • Impressive and Growing Footfall - Overall footfall trend positive across Mall Division in 2010, with The Dubai Mall now the busiest mall as measured by footfall in Dubai Since opening in Nov-08. The Mall has already crossed over 33 Million visitors with recent growth
Slide 26: Dubai Mall Footfall Trend
Dubai Mall Footfall Trend 25.00 23.68 20.00 18.51 15.00 10.00 11.72 5.00 0.00 H1-09 H2-09 H1-10 Footfall (In millions) © Emaar 2008 26
Slide 27: Emaar Hospitality Group
Emaar Hospitality Group Management Capacity Current Projects Category Operational Company Rooms Dubai Armani Hotel at Burj Khalifa EH&R(1) 5 Star 160 2010 The Address Downtown Dubai TAH&R(2) 5 Star 196 2008 Al Manzil Hotel Southern Sun 4 Star 197 2007 Qamardeen Hotel Southern Sun 4 Star 186 2007 The
Slide 28: Emaar Hospitality Group
Emaar Hospitality Group YTD October 2010 The Address The Address The Address The Palace Al Manzil Qamardeen Downtown Dubai Mall Dubai Marina No of rooms - YTD 59,584 73,568 74,176 60,800 59,888 56,544 Occ% 84% 75% 77% 60% 75% 69% ADR 1,261 1,022 1,086 716 606 509 Revpar 1,062 770 834 427 455 350 Roo
Slide 29: Emaar Hospitality – Key Strengths
Emaar Hospitality – Key Strengths Portfolio of Hospitality Brands: The Hospitality Division has successfully developed recognisable brands for the different categories of assets which have driven the creation of brand equity. It has also secured exclusive license rights of the “Armani” brand for dev
Slide 30: Emaar Hospitality – Key Strengths (Cont')
Emaar Hospitality – Key Strengths (Cont’) High Margin Lease Income: The operations of Nuran Serviced Apartments have generated regular, high margin annuity income from low maintenance prime assets in Dubai. Occupancy levels have averaged about 70% in 2009 between both properties achieving an EBITDA
Slide 31: Emaar Healthcare
Emaar Healthcare As part of our strategy to develop high quality lifestyle communities, Emaar Healthcare will build and own clinics and medical centres in and around Emaar developments. These are operated in partnership with Methodist International, the international arm of US-based premier healthca
Slide 32: Financial Highlights
FINANCIAL HIGHLIGHTS © Emaar 2008 32
Slide 33: Financial Performance – AED millions
Financial Performance – AED millions Q3-10 Q2-10 % Q3-10 Q3-09 % 9M-10 9M-09 % Revenue 2,782 2,652 5% 2,782 1,948 43% 8,320 5,429 53% Gross Profit 1,030 1,124 (8%) 1,030 1,096 (6%) 3,354 2,676 25% SGA (446) (499) (11%) (446) (457) (2%) (1,395) (1,367) 2% Other income 118 306 (61%) 118 111 6% 487 338
Slide 34: Balance Sheet and Ratio Analysis
Balance Sheet and Ratio Analysis AED million 2007 2008 2009 Sep-10 Current Assets 12,030 9,351 5,915 6,930 Fixed Assets and Investment properties 13,069 18,662 15,368 15,444 Other Assets 35,874 38,667 42,862 40,559 Total Assets 60,973 66,680 64,145 62,933 Interest Bearing Liabilities 7,704 9,174 8,6
Slide 35: Revenue & Gross Profit
Revenue & Gross Profit Revenue Composition Evolution 10% 7% 3% 26% 24% International Leasing & Hospitality 90% 67% 73% Dubai Operations 2008 2009 Sep-10 Revenue (AED Millions) Gross Profit Margin (%) Sep’10 2009 2008 Sep’10 2009 2008 Dubai Operations 6,075 5,675 9,641 33% 45% 49% Leasing & Hospitali
Slide 36: Key Performance Indicators
Key Performance Indicators Gross Margin from Continuing Operations 57% 48% 50% 49% 49% 42% 42% 40% Percentage 28% 2002 2003 2004 2005 2006 2007 2008 2009 Sep-10 Note: 2007 and 2008 Gross margin do not include write down of development properties at WLH (2007: AED 458m and 2008: AED 1,084m) Note: The
Slide 37: Thank You
THANK YOU © Emaar 2008 37
Slide 38: Appendix
APPENDIX © Emaar 2008 38
Slide 39: Overseas Project Portfolio
Overseas Project Portfolio Country Projects Development value Development value in AED in US$ (at US$3.673) Pakistan Crescent Bay, Karachi AED 11.40 billion US$ 3.1 billion Canyon Views, Islamabad AED 2.06 billion US$ 560 million Morocco Tinja, Tangiers AED 5.50 billion US$ 1.5 billion Saphira, Raba
Slide 40: Strong and Influential Strategic Partners
Strong and Influential Strategic Country Partner Background UAE Bawadi Member of Tatweer SAGIA Government authority Saudi Arabia Al Oula Leading real estate company in Saudi Arabia India MGF One of India's largest real estate developers Morocco's largest conglomerate Morocco ONA Group with influenti
Slide 41: Experienced & Highly Qualified Management Team
Experienced & Highly Qualified Management Team Board of Directors Chairman: Mohamed Ali Alabbar Vice Chairman: Hussain Al Qemzi Ahmad Thani Ayman Hamdy Al Matrooshi Company Secretary Managing & Director Legal Director Low Ping Issam Galadari Sergio Casari Other Executive Director CEO Emaar CEO Busin
Slide 42: Group Structure
Group Structure EMAAR PROPERTIES PJSC EMAAR DUBAI HOTELS & EMAAR EMAAR MALLS HOSPITALITY HEALTHCARE Property RESORTS Development INTERNATIONAL INVESTMENTS 100% 100% 100% 100% Projects - 100% Emrill Services MGF-India KSA - EEC Turner Int’l ME Dubai Mall Giorgio Armani Nuran LLC 33.33% 44% 30.50% 50%
Slide 43: Awards
Awards 2010 • Euromoney Best Developer in the UAE • Euromoney Top Honours - Best Developer of Residential and mix-use projects in the UAE and Turkey • Arabian Property Awards, The Address Dubai Mall- Best Hotel Construction and Design • Arabian Property Awards, The Address Montgomerie, Best Golf Cou
Slide 44: 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 45: Thank You
Thank You www.emaar.com © Emaar 2008 45