Emaar Development Pjsc · DFM:EMAARDEV
Emaar Development Pjsc — H1 2022 Earnings Presentation
34 slides from Emaar Development Pjsc's earnings presentation, Sep 6, 2022
Slide 1: Emaar Development PJSC Investor Presentation
Emaar Development PJSC Investor Presentation August 2022 0
Slide 2: Disclaimer
Disclaimer Emaar Development 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 responsibi
Slide 3: Discussion Summary
Discussion Summary Investment Rationale Business Overview Business Strategy & Outlook H1 2022 Results Update Annexure 2 | EMAAR DEVELOPMENT
Slide 4: Investment Rationale
Investment Rationale 3 | EMAAR DEVELOPMENT
Slide 5: Emaar Development at a Glance
Emaar Development at a Glance Creator of World-Renowned Architectures Strong Financial Performance in H1 2022 • Burj Khalifa – Tallest Building in the World • Revenue ~AED 7.3 Bn • Dubai Marina – Largest Man-Made Marina1 (3.5 sq.km.) development of its kind • EBITDA ~AED 2.6 Bn • Dubai Fountain – Wo
Slide 6: Developer of Iconic Master Plans Transforming Dubai
Developer of Iconic Master Plans Transforming Dubai Downtown Dubai Dubai Marina 2005 Today 2003 Today ✓ 500-acre Flagship Mega-Development ✓ Largest Man-Made Marina1 (3.5 sq.km.) development of ✓ One of the Most Visited Destinations In The World its kind ✓ Includes World’s Tallest Building & World’s
Slide 7: Strong Performance Track Record
Strong Performance Track Record Revenues In AED Mn Gross Profit In AED Mn 15,433 15,602 6,700 5,735 12,746 5,061 8,863 9,758 3,761 3,478 3,109 6,899 7,283 2,861 5,253 2,395 2015 2016 2017 2018 2019 2020 2021 H1' 22 2015 2016 2017 2018 2019 2020 2021 H1' 22 EBITDA In AED Mn Net Profit After Minority
Slide 8: Consistently Ahead of the Competition
Consistently Ahead of the Competition Emaar Development Maintained Robust Sales Trend since 2015 Robust Sales – Ahead of the Competition1 (~3.5x in 2021) In AED Bn 27.4 14.4 18.0 14.2 14.8 ✓ Displayed strong sales traction. 10.2 9.1 7.0 7.5 6.3 7.8 4.3 3.1 2.3 ✓ Significant long-term value creation
Slide 9: Business Overview
Business Overview 8 | EMAAR DEVELOPMENT
Slide 10: Largest Master Developer and Preferred Development Partner
Largest Master Developer and Preferred Development Partner Leadership Position Preferred Development Partner • Largest masterplan developer in UAE, having • Recognition for superior quality and consistent transformed Dubai’s landscape delivery • Unique proposition of premier integrated lifestyle • A
Slide 11: De-risked Business Model to Deliver Self-Sustaining Growth
De-risked Business Model to Deliver Self-Sustaining Growth Minimal Cash Self-Funded Construction Minimal Default Rate Requirement for Land • Sufficient land bank, limited • Construction cost is funded • Minimal default rates levels incremental investment in through pre-sales of ~1% of sales value ne
Slide 12: Diversified Customer Base to Maintain Healthy Sales Traction
Diversified Customer Base to Maintain Healthy Sales Traction 2021 Customer Mix – 2021 Customer Mix – Residents vs. Non-residents Based on Nationality India Others UAE China Non Resident 40% Resident 60% UK Russia Rest of Europe Iran France Pakistan Flight to Quality due to Strong Preference for Emaa
Slide 13: Sufficient Land Bank to Deliver Long-term Growth
Sufficient Land Bank to Deliver Long-term Growth Land Bank Evolution Though Investments & Strategic Partners Year Area 2012 Arabian Ranches II (million sq ft) GFA BTS 2011- 2022 Multiple CAGR 2013 Dubai Hills Estate ~22x ~40% 2014 Dubai Creek Harbour 369 369 369 369 2015 Emaar South 2016 Downtown Vi
Slide 14: Business Strategy & Outlook
Business Strategy & Outlook 13 | EMAAR DEVELOPMENT
Slide 15: Development Strategy: Consolidate and Prepare for the Next Growth Phase
Development Strategy: Consolidate and Prepare for the Next Growth Phase Leverage the Strength Marketing to Well-planned Execution Product Innovations of Master Developments International Customers & Delivery • Leverage on the existing • Unique product offering for • Targeting international • Timely
Slide 16: H1 2022 Results Update
H1 2022 Results Update 15 | EMAAR DEVELOPMENT
Slide 17: H1 2022 Key Highlights
H1 2022 Key Highlights Property Sales Revenue EBITDA ~AED 15.2 Bn ~AED 7.3 Bn ~AED 2.6 Bn Net Profit Default Rate ~1% of Sales c. 3,100 Units Delivered ~AED 2.2 Bn Value c. 26,100 units under c. AED 32.8 Bn c. AED 9.5 Bn construction to be delivered Revenue Backlog1 Escrow Balance2 in next 4 years T
Slide 18: H1 2022 Key Highlights
H1 2022 Key Highlights AED Million H1 2022 H1 2021 % Change Property Sales 15,216 13,825 10% Revenue 7,283 7,755 (6%) Gross Profit 3,109 2,951 5% Margin (%) 42.7% 38.1% - EBITDA (before minority interest) 2,564 2,223 15% Margin (%) 35.2% 28.7% - Net Profit (attributable to owners) 2,190 1,512 45% Ma
Slide 19: Balance Sheet & Cash Flow Overview
Balance Sheet & Cash Flow Overview Balance Sheet¹ Overview Cash Flow Overview In AED Mn Total: AED 37,982 Mn Assets Liabilities & Equity 18 | EMAAR DEVELOPMENT 1) Balance sheet data as of 30th June 2022, as reported
Slide 20: Project Development Status / Overview
Project Development Status / Overview 100% Owned Developments 100% Consolidated JV JV/JDAs with 50% Share Others Ras Al Khaimah & (100% Arabian Rashid Dubai Emaar owned land bank); Downtown Dubai Emaar Dubai 4 The Valley Yachts & 3 3 Zabeel Square (JV with Total Dubai Ranches Marina Beachfront Hills
Slide 21: Annexure
Annexure 20 | EMAAR DEVELOPMENT
Slide 22: Projects Overview
Projects Overview Wholly-owned projects Downtown Dubai Arabian Ranches Dubai Marina Emirates Living Emaar Beachfront The Valley Garden All under-construction Expansion of the Two waterfront Green-focused An exclusive residential A gated community projects (including Vida current Arabian residential/
Slide 23: UAE Development – Projects Overview
UAE Development – Projects Overview 100% Consolidated JV JVs/JDAs with 50% share Rashid Yachts & Dubai Hills Estate Dubai Creek Harbour Emaar South Zabeel Square Marina* Joint Venture between Joint Venture between Joint Development Joint Venture between Joint venture between Emaar and Meraas Holding
Slide 24: UAE Development – Projects Under Development (100% Owned)
UAE Development – Projects Under Development (100% Owned) % Remaining Collections of Sold Value Project Value Area Launch % Collected of % Completion % Gross Margin Till Post Project (100% Owned) Units % Unit Sold % Value Sold Total (AED Mn)(1) (SQF) Period sold value Jun-22 Jun-22² Handover Handove
Slide 25: UAE Development – Projects Under Development (JVs)
UAE Development – Projects Under Development (JVs) % Remaining Collections of Sold Value Project Value Area Launch % Collected of % Completion % Gross Margin Till Post Project (Joint Ventures) Units % Unit Sold % Value Sold Total (AED Mn)(1) (SQF) Period sold value Jun-22 Jun-22² Handover Handover D
Slide 26: UAE Development – Projects Under Development (JVs)
UAE Development – Projects Under Development (JVs) % Remaining Collections of Sold Value Project Value Area Launch % Collected of % Completion % Gross Margin Till Post Project (Joint Ventures) Units % Unit Sold % Value Sold Total (AED Mn)(1) (SQF) Period sold value Jun-22 Jun-22² Handover Handover D
Slide 27: UAE Development – Completed Projects (100% Owned)
UAE Development – Completed Projects1 (100% Owned) % Remaining Project Value Area % Collected of sold Project (100% Owned) Units (2) % Unit Sold % Value Sold Collections of (AED Mn) (SQF) value Sold Value Downtown Dubai 5,905 23,775 8,686,496 99% 99% 94% 6% Blvd Heights 550 1,805 773,089 97% 96% 88%
Slide 28: UAE Development – Completed Projects (JVs)
UAE Development – Completed Projects1 (JVs) % Remaining Project Value Area % Collected of sold Project (Joint Ventures) Units (2) % Unit Sold % Value Sold Collections of (AED Mn) (SQF) value Sold Value Dubai Hills Estates 7,929 24,151 20,958,418 99% 98% 88% 12% Park Heights I 270 319 216,135 100% 10
Slide 29: UAE Development – Location of Development Projects
UAE Development – Location of Development Projects Rashid Yachts & Marina Note: ‘Rashid Yachts & Marina’, formerly ‘Mina Rashid’ 28 | EMAAR DEVELOPMENT
Slide 30: Expected Delivery Schedule
Expected Delivery Schedule Under Development Delivery Schedule Under Completed Jan-Jun Jul-Dec Development 2023 2024 2025 2026 2022 2022 - A - Emaar Development (fully consolidated) Downtown* 15,284 7,797 295 - 4,793 1,929 - 1,075 Emaar Beachfront 917 3,017 460 - 623 1,030 550 814 Dubai Marina 4,936
Slide 31: JV / JDA Accounting Treatment
JV / JDA Accounting Treatment Accounting P&L Balance Sheet Impact on Return on Capital Dubai Hills – • 100% consolidation • 100% consolidation • Neutral impact on ROCE Consolidation • 50% Minority Interest • 50% Minority Interest Rashid • 100% consolidation Yachts & • 30% Management Fee • 100% conso
Slide 32: Divisions Overview
Divisions Overview UAE Entertainment & International Operations Malls* Hospitality Development Leasing • Leading master plan • Active in 10 targeted high • Owner and operator of the • Hotel owner and operator • Provider of premium developer in Dubai growth countries most visited mall in the (33 hote
Slide 33: Group Structure
Group Structure* EMAAR PROPERTIES PJSC (3) (5) 32 | EMAAR DEVELOPMENT * Included only material entities
Slide 34: Thank You
Thank You EMAAR DEVELOPMENT Name – Abhay Singhvi Email id - [email protected] 33 | EMAAR DEVELOPMENT
Emaar Development PJSC — H1 2022 Earnings Presentation on 6ix