Emaar Properties (P.J.S.C) · DFM:EMAAR
Emaar Properties (P.J.S.C) — Emaar Malls PJSC — H1 2021 Earnings Presentation
35 slides from Emaar Properties (P.J.S.C)'s earnings presentation, August 2021
Slide 1: Emaar Malls PJSC Investor Presentation
Emaar Malls PJSC Leading Owner and Operator of Dominant Retail Assets Investor Presentation August 2021 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 H1 2021 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 36 Retail Assets High Operating Margin with GLA of 6.84 Mn sq. ft. EBITDA Margin2 – 77.1% Owner of The Dubai Mall – 76 Mn Footfall Most Visited Mall in the World 91% Occupancy Rate Omnichannel Presence through Namshi Annual Gross Rental Income Revenues 24% CAG
Slide 6: Strong Performance Track Record
Strong Performance Track Record Emaar Malls Delivered Strong Results in Challenging Market Environment over 2016 to 2020 Rental Income In AED Mn EBITDA & PAT Margin % 1 3,599 3,647 80.5% 81.5% 80.9% 3,227 3,323 75.8% 64.2% 2,192 63.0% 63.4% 64.0% 58.1% 34.9% 2016 2017 2018 2019 2020 2016 2017 2018 2
Slide 7: Comfortable Leverage and Credit Profile
Comfortable Leverage and Credit Profile Solid Credit Profile with very Comfortable Leverage and Significant Debt Coverage AED Million Dec 2020 Jun 2021 Key Ratios Dec 2020 Jun 2021 Debt 2,750 2,753 Debt / NAV 0.06 0.06 Cash 559 1,638 Debt / Equity 0.14 0.14 Net Debt 2,191 1,114 Debt / Total Assets 0
Slide 8: Business Overview
Business Overview 7 | EMAAR MALLS
Slide 9: 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 10: 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 11: With an Appealing Design & Architecture
…With an Appealing Design & Architecture 10 | EMAAR MALLS
Slide 12: 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 13: Focus on Digitalisation for Enhanced Customer Service
Focus on Digitalisation for Enhanced Customer Service… THE DUBAI MALL APP 2.0 – CORE FEATURES Digital Initiatives taken at The Dubai Mall – Easy Parking ✓ Delivery Service ✓ Leveraging customer data analytics to better understand customer buying behaviour, taste and preferences 12 | EMAAR MALLS
Slide 14: 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 – 538 k • Spend captured since inception – AED 7,025 Mn • Number of transactions since inception – 3,243 k 13 | EMAAR MALLS
Slide 15: Diversified Tenant Mix & Category Mix
Diversified Tenant Mix & Category Mix… Diverse Retailers And Marquee Brands With Many Having Exclusive Presence At Emaar Malls 2020 Category Mix - % GLA 4.8%, Health & Beauty 5.1%, Supermarket 4.4%, Furnishings 1.5%, Jewellery 4.0%, Merchandise 2.7%, Services 2.6%, High End Jewellery & Watches 9.8%,
Slide 16: 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 32% consumer needs • Offer innovative & fresh retail concepts 22% 19% 17% • Tenant re-zoning & re-sizin
Slide 17: Steady Rental Income Growth, High Operating Profitability
…And Steady Rental Income Growth, High Operating Profitability Steady Rental Income Robust Revenue Model Revenue Model: Chart Title • Rent equals higher of base rent or turnover rent 3,599 3,647 3,323 • Base rent is increased at a pre-defined rate over the lease term of 3,227 10% 10% 3-5 years 13% 1
Slide 18: 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 ~950+ brands and growing • Preferred fashion channel, young & trendy 1,316 Net Merchandise Value 2 Gross Margin 2 24% + 4% 33.8% 1,028 849 730 Active Customers 2
Slide 19: Omni-channel Presence Through Namshi (Contd.)
Omni-channel Presence Through Namshi (Contd.) 2020 Geographical Mix Unrivalled Product Assortment in Middle East Other GCC 8% Prominent High Quality Fashion Brands UAE 24% KSA 68% 2020 Category Mix Sports Private Label 32% 12% Gifts, Home & Beauty Growing White Label Portfolio 12% Accessories Female
Slide 20: 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 21: Business Strategy & Outlook
Business Strategy & Outlook 20 | EMAAR MALLS
Slide 22: 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 23: 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 TDM Boulevard Expansion c. 110 2022 • Pure Rental Income Play • Focus on rental income growth and cash flow generation • Minimal Development Risk O
Slide 24: New Expansions – Strong Growth Potential (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 25: New Expansions – Strong Growth Potential (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 • Excellent access & inf
Slide 26: H1 2021 Results Update
H1 2021 Results Update 25 | EMAAR MALLS
Slide 27: H1 2021 Key Highlights
H1 2021 Key Highlights Strong recovery in Robust Occupancy of Tenant Sales Revenues 77% increase vs H1-20 & 91% AED 2,048 Mn higher than H1-19 despite in challenging market the pandemic and its impact on tourism The Dubai Mall won award for Best Service Opened Middle East’s first The Middle East Cle
Slide 28: Emaar Malls – H1 2021 Result Highlights
Emaar Malls – H1 2021 Result Highlights AED Million Emaar Malls Namshi Consolidated1 Revenue 1,365 685 2,048 Cost of revenue (197) (456) (653) Gross profit 1,168 229 1,395 % Gross margin 85.6% 33.4% 68.1% Sales, marketing, general & administration expenses (116) (289) (406) EBITDA 1,052 (60) 989 % E
Slide 29: Emaar Malls – Consolidated Result Highlights
Emaar Malls – Consolidated Result Highlights AED Million Q2 2021 Q2 2020 % Change H1 2021 H1 2020 % Change Revenue 1,147 661 74% 2,048 1,660 23% Cost of revenue (401) (312) (29%) (653) (565) (16%) Gross profit 746 349 114% 1,395 1,095 27% % Gross margin 65.0% 52.8% 68.1% 66.0% Sales, marketing, gene
Slide 30: Emaar Malls Excl. Namshi – Result Highlights
Emaar Malls Excl. Namshi – Result Highlights AED Million Q2 2021 Q2 2020 % Change H1 2021 H1 2020 % Change Revenue 720 252 186% 1,365 993 37% Cost of revenue (107) (69) 55% (197) (160) 23% Gross profit 613 183 235% 1,168 833 40% % Gross margin 85.1% 72.6% 85.6% 83.9% Sales, marketing, general & admi
Slide 31: Emaar Malls Excl. Namshi – Consolidated Result Highlights
Emaar Malls Excl. Namshi – Consolidated Result Highlights Rental Income Breakup (AED Mn) Footfalls - Mn Occupancy % Chart Title 92% 91% 1,365 43 39 4% 993 21% 4% 22% 8% 75% H1 2020 H1 2021 66% Key Highlights • Stable leasing occupancy of 91% H1 2020 H1 2021 • In April 2021, Emaar Malls’ partnership
Slide 32: Emaar Malls – Consolidated Balance Sheet
Emaar Malls – Consolidated Balance Sheet 30-Jun-21 31-Dec-20 AED Million Carrying Value Fair Value Carrying Value Fair Value Assets Property plant and equipment & Investment Properties 22,334 45,296 22,317 45,296 Intangible Assets & Right to Use Assets 1,724 1,724 1,066 1,066 Bank balances and cash
Slide 33: Annexure
Annexure 32 | EMAAR MALLS
Slide 34: 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 listed • Hotel owner and operator (28 • Provider of premium developer in Dubai growth countries on DFM since Oc
Slide 35: Thank You
Thank You EMAAR MALLS Name – Abhay Singhvi Email id - [email protected] 34 | EMAAR MALLS