Emaar Properties (p.j.s.c) · DFM:EMAAR

Emaar Properties (p.j.s.c) — Investor Presentation (May 2012)

46 slides from Emaar Properties (p.j.s.c)'s investor presentation, May 13, 2012

  1. Slide 1: Emaar Properties PJSC Corporate Presentation

    Emaar Properties PJSC Corporate Presentation May 13th, 2012 © Emaar 2012

  2. Slide 2: Emaar Overview

    EMAAR OVERVIEW © Emaar 2012 2

  3. 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 19.92 bn (US $5.42 bn) Revenues: FY 2009 AED 8.41 bn (US $2.29 bn) FY 2010 AED 12.15 bn (US $ 3.31 bn) FY 2011 AED 8.11 bn (US $ 2.21 bn) Q1 2012 AED 1.82 bn (US $ 0.50 bn) Net

  4. 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. Our international land bank includes over 240* million sqm across Ind

  5. Slide 5: EMAAR's Business Strategy – Mid Term

    EMAAR‟s Business Strategy – Mid Term • Take advantage of recent buoyancy in Dubai Real Estate markets through new iconic projects. • Develop value housing through Al Dawahi in Dubai and other regional countries previously not catered to. • Development of Rental / Mall assets in countries including E

  6. Slide 6: EMAAR's Group 2011 Performance Highlights

    EMAAR‟s Group 2011 Performance Highlights Performance highlights/Key Achievements during 2011 and Q1 2012 included: • Armani Hotel: Official opening of the second Armani Hotel in Milan, Italy • Dubai and International RE: Hand over of 825 units and more than 920,000 sq ft of commercial in Dubai and

  7. Slide 7: EMAAR's Group 2011 Performance Highlights Cont'd

    EMAAR‟s Group 2011 Performance Highlights Cont‟d Profitability | Stable performance in tough market conditions • Revenues for the year 2011 were AED 8.11 bn (versus 2010 AED 12.15 bn) • Net Operating Profit of the year 2011 was AED 2.06 bn (versus 2010 AED 3.03 bn) Balance Sheet as at 31 December 20

  8. Slide 8: EMAAR Key Group Divisions

    EMAAR Key Group Divisions Property Property Malls Hotels Development Development and Resorts & UAE International Retail Hospitality • Market • Active in 10 • Current retail • Developer, owner leading targeted high space of over and manager of developer in growth countries 500,000 sqm Armani branded

  9. Slide 9: Strong Record of Execution

    Strong Record of Execution 40,000 Cumulative Number of Residential Units Delivered 33,500 32,673 35,000 29,422 30,000 26,378 21,402 25,000 18,289 17,794 16,192 14,686 20,000 12,152 12,918 8,217 15,000 5,965 10,000 4,870 13,185 14,226 14,736 14,879 15,211 5,000 8,048 10,227 - 2005 2006 2007 2008 2009

  10. Slide 10: Investment Highlights

    INVESTMENT HIGHLIGHTS © Emaar 2012 10

  11. Slide 11: Shareholder's Value – NAV Computation

    Shareholder‟s Value – NAV Computation (AED million) 2011 2010 Book value Fair value Book value Fair value Cash and bank balances 2,865 2,865 5,042 5,042 Trade and other receivables 3,535 3,535 3,757 3,757 Development properties 26,611 37,726 26,492 42,300 Investment in associates 6,684 6,389 7,592 7

  12. Slide 12: Shareholder's Value – NAV Computation

    Shareholder‟s Value – NAV Computation 2011 2010 Net Asset Value as per consolidated balance sheet (AED millions) 31,308 31,069 Add: Fair value in excess of book value for Development properties 10,591 15,223 (AED millions) Add: Fair value of assets in excess of book value for Investment 6,506 5,155

  13. Slide 13: Evolution of Emaar Group Revenue

    Evolution of Emaar Group Revenue 8,401 9,000 8,000 7,000 5,675 68% 6,000 AED m illions 5,000 67% 2,776 3,265 4,000 3,036 2,101 3,000 41% 1,811 24% 973 2,000 637 37% 25% 22% 22% 18% 1,000 8%8% 8% 8% - 2009 2010 2011 Dubai Operations Malls, Leasing & Hospitality International © Emaar 2012 13

  14. Slide 14: Fair Value of Development Properties

    Fair Value of Development Properties (AED million) 2011 2010 Book value Fair value Book value Fair value UAE 14,097 17,254 14,785 20,258 Egypt 5,126 10,382 4,531 12,538 India 79 79 83 83 Turkey 2,811 3,670 2,543 2,758 KSA 1,638 1,911 1,734 2,462 Pakistan 634 1,427 613 1,383 Canada & USA 938 938 1,02

  15. Slide 15: Fair Value of Investment Properties

    Fair Value of Investment Properties (AED million) 2011 2010 Book value Fair value Book value Fair value Dubai Mall & Marina Mall 6,586 11,986 6,807 10,855 Burj Dubai (Souk Al Bahar and other 456 766 392 681 retail locations) Burj Dubai Business Square 159 394 166 527 Gold & Diamond Park 176 316 181

  16. Slide 16: Fair Value of Fixed Assets

    Fair Value of Fixed Assets (AED million) 2011 2010 Book value Fair value Book value Fair value Hotels, Convention centre & Service Appartments 4,370 6,244 4,064 5,019 Emaar Business Park 50 116 107 271 District Cooling Plant 371 371 383 383 At The Top 132 132 143 143 Leisure and Entertainment & Medi

  17. Slide 17: Shareholders' Value

    Shareholders‟ Value 80 18 70 16 72 14 60 11.77 Shareholders' equity as per 12 AED per share audited financial statements AED billions 50 54 52 50 8.79 10 Net asset value (including FV of 40 8.58 8.23 DP, Assets and market value of 8 listed securites) 30 Net asset value per share 31 31 6 28 29 20 4 1

  18. Slide 18: Regional Operations

    REGIONAL OPERATIONS © Emaar 2012 18

  19. Slide 19: Property Development: UAE

    Property Development: UAE • Government Support: Historic land grants and 32% shareholding • Partnership with Quality Arabtec, Nasa Multiplex, Samsung, Al Futtaim Developers: Carillion. • Established Reputation: Timely deliveries of high quality properties • Track Record:(1) 30,120 residential proper

  20. Slide 20: 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. All the developments under construction will complete within the next 2 years. • Pre-sales model utilised, with the cash inflows from customers insta

  21. Slide 21: Regional Business Highlights

    Regional Business Highlights Under Deliveries Deliveries Deliveries Deliveries Deliveries Projects Completed Construction till 2009 2010 2011 2012 2013 Downtown Development 8,173 1,696 6,806 1,047 - 1,267 749 Downtown Commercial Space (Sq.ft. area) 2,898,250 - 1,443,223 633,336 443,158 300,000 - Dub

  22. Slide 22: International Operations

    INTERNATIONAL OPERATIONS © Emaar 2012 22

  23. Slide 23: Key International RE Markets–Unit Sales to Date

    Key International RE Markets–Unit Sales to Date Emaar has achieved an overall sales level of 82% in its key International markets Units Unit Sale % sales Country Entity Released achieved achieved Egypt Emaar Misr for Development S.A.E. 2,757 2,186 79% KSA Emaar Middle East 444 341 77% Subsidiaries S

  24. Slide 24: Key International Markets - Business Highlights

    Key International Markets - Business Highlights To be Units Units Under Deliveries Deliveries Deliveries Deliveries Deliveries Deliveries Country Entity Developed Completed Development 2009 2010 2011 2012 2013 2014 2012-2014 Subsidiaries Egypt Emaar Misr 319 1,881 4,229 - 100 219 959 836 409 KSA Ema

  25. Slide 25: 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

  26. Slide 26: Segments

    SEGMENTS © Emaar 2012 26

  27. Slide 27: 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 94% across all assets (March 2012) and significant interest on remaining units resulted from success of The Dubai Mall. In te

  28. Slide 28: Malls – Key Strengths (Cont'd)

    Malls – Key Strengths (Cont‟d) • Impressive and Growing Footfall - Overall footfall trend positive across Mall Division in 2011, with The Dubai Mall now the busiest mall in the World as measured by footfall in Dubai since opening in Nov-08. The Mall recorded 54 million visitors 2011 and highest-ever

  29. Slide 29: Dubai Mall Footfall Trend

    Dubai Mall Footfall Trend Dubai Mall Average Quarterly Footfall Dubai Mall Footfall 6 60 5.43 54 5 50 47 5.16 No. of Visitors (Millions) No. of Visitors (Millions) 4.47 4 4.17 4.26 4.2 4.15 40 3.42 3.75 3.57 31 3 2.78 30 2.27 2 16.3 1.74 20 1 10 3 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2009

  30. Slide 30: At The Top Footfall Trend

    At The Top Footfall Trend At The Top Footfall 500 438 450 No. of Visitors (Thousands) 400 390 350 384 348 315 300 250 219 242 200 246 150 100 97 50 0 Q1-2010 Q2-2010 Q3-2010 Q4-2010 Q1-2011 Q2-2011 Q3-2011 Q4-2011 Q1-2012 © Emaar 2012 30

  31. Slide 31: Emaar Hospitality Group

    Emaar Hospitality Group Management Capacity Current Projects Category Operational Company Rooms Dubai Armani Hotel at Burj Khalifa AHM(1) 5 Star 160 2010 Armani Hotel, Milan, Italy AHM(1) 5 Star 95 2011 The Address Downtown Dubai TAH&R(2) 5 Star 196 2008 Al Manzil Hotel Southern Sun 4 Star 197 2007

  32. Slide 32: Emaar Hospitality Group

    Emaar Hospitality Group 1st Quarter 2012 The Address The Palace The Address The Address Al Manzil Qamardeen Downtown Old Town Dubai Mall Dubai Marina Avail. room nights 17,836 22,022 22,204 18,200 17,927 16,926 Occupancy % 96% 94% 90% 90% 94% 91% ADR 1,684 1,400 1,489 971 846 708 Revpar 1,622 1,309

  33. Slide 33: 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 the license rights of the “Armani” brand for development of a

  34. Slide 34: Emaar Hospitality – Key Strengths (Cont'd)

    Emaar Hospitality – Key Strengths (Cont‟d) 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 83% in 2011 between both properties achieving an EBITDA

  35. Slide 35: Financial Highlights

    FINANCIAL HIGHLIGHTS © Emaar 2012 35

  36. Slide 36: Financial Performance – AED millions

    Financial Performance – AED millions Q4-11 Q3-11 % Q4-11 Q4-10 % 2011 2010 % Revenue 2,239 1,859 20% 2,239 3,830 (42%) 8,112 12,150 (33%) Gross Profit 1,269 975 30% 1,269 1,192 6% 4,235 4,546 (7%) SGA (517) (461) 12% (517) (523) (1%) (1,834) (1,918) (4%) Other (expense)/income 45 (44) 202% 45 148 (7

  37. Slide 37: Balance Sheet and Ratio Analysis

    Balance Sheet and Ratio Analysis AED million 2007 2008 2009 2010 2011 Current Assets 12,030 9,351 5,915 8,014 5,789 Fixed Assets and Investment properties 13,069 18,662 15,368 16,649 16,299 Other Assets 35,874 38,667 42,862 37,841 37,966 Total Assets 60,973 66,680 64,145 62,504 60,054 Interest Beari

  38. Slide 38: Thank You

    THANK YOU © Emaar 2012 38

  39. Slide 39: Appendix

    APPENDIX © Emaar 2012 39

  40. Slide 40: Land Bank in Key International Markets

    Land Bank in Key International Markets (including associates) Gross land area in millions sqm Country Current Kingdom of Saudi Arabia 171.7 India 44.2 Egypt 14.7 Jordan 1.8 Turkey 1.4 Lebanon 0.7 Syria 0.2 TOTAL INTERNATIONAL 234.7 Gross Construction Area to be developed* - 10.14 million sqm * Exclu

  41. Slide 41: Strong and Influential Strategic Partners

    Strong and Influential Strategic Country Partner Background SAGIA Government authority Saudi Arabia Al Oula Leading real estate company in Saudi Arabia India One of India's largest real estate developers MGF with influential shareholders Haji Rafiq Principal of a large construction co. (Giga) Pakist

  42. Slide 42: Experienced & Highly Qualified Management Team

    Experienced & Highly Qualified Management Team Board of Directors Chairman: Mohamed Ali Alabbar Vice Chairman: Hussain Al Qemzi Managing Director: Ahmad Al Matrooshi Low Ping Ayman Hamdy CEO Company Secretary & Executive Director Legal Amit Jain Robert Booth Frederick Durie Other Group CFO CEO Real

  43. Slide 43: Group Structure

    Group Structure EMAAR PROPERTIES PJSC EMAAR DUBAI HOTELS & EMAAR EMAAR MALLS HOSPITALITY Property RESORTS Development INTERNATIONAL INVESTMENTS 100% 100% Projects - 100% 100% Emrill Services MGF-India KSA - EEC Turner Int‟l ME Dubai Mall Giorgio Armani Nuran LLC 33.33% 49% 30.50% 50% 100% Hotels 100

  44. Slide 44: Awards

    Awards 2012 •Middle East‟s Leading Development Company: World Travel Awards •The Address Downtown Dubai: Expedia Award •The Address Downtown Dubai: Hukama received „Best Chinese Restaurant‟ award, TimeOut Restaurant Awards •The Address Dubai Mall: Dubai's Leading Lifestyle Hotel, World Travel Awards

  45. Slide 45: 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

  46. Slide 46: Thank You

    Thank You www.emaar.com © Emaar 2012 46

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