Emaar Properties (p.j.s.c) · DFM:EMAAR
Emaar Properties (p.j.s.c) — Emaar Properties — Q3 2018 Earnings Presentation
55 slides from Emaar Properties (p.j.s.c)'s earnings presentation, December 2018
Slide 1: Emaar Properties Q3 2018 Results
Emaar Properties Q3 2018 Results December 2018
Slide 2: 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 3: Table of Contents
Table of Contents KEY HIGHLIGHTS INCOME STATEMENT BALANCE SHEET OPERATIONAL OVERVIEW APPENDIX Q3 2018 Results Presentation 28 February 2019 Page 2
Slide 4: Emaar Properties at a Glance
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Properties at a Glance #1 1.6Bn c. 94,000 listed developer SQFT of land units sold since by market cap bank in key inception(3) in MENA(1) countries c. 61,000 in UAE +49,700 residential units +50.7Bn c.44,400 total Bac
Slide 5: Key Financial Highlights for the Group
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Key Financial Highlights for the Group (1) (1) AED Million Q3 2018 Q3 2017 % Change 9M 2018 9M 2017 % Change Group Property Sales 5,475 5,672 (3%) 12,728 17,638 (28%) Revenue 5,325 5,610 (5%) 17,390 13,351 30% Gross Profit 2
Slide 6: Results by Segment
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Results by Segment Revenues Breakdown of Results AED Billion Revenue 31% 54% (13%) 33% 0% 11% 17.4 6% 13.3 6% 10.0 6.5 18% 2.1 2.4 3.2 2.4 1.1 1.1 1.0 0.9 58% Emaar UAE International Emaar Malls Emaar Entertainment 12% Prope
Slide 7: Emaar Financial Performance
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar- Financial Performance AED Million CAGR CAGR +17% +30% +14% +30% 18,792 9,398 8,810 17,390 8,100 15,540 13,661 13,351 Gross 7,263 6,785 Revenue Profit 53% 52% 50% 51% 51% 2015 2016 2017 9M 2017 9M 2018 2015 2016 2017 9
Slide 8: Balance Sheet Overview at 30 Sep 2018
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Balance Sheet Overview at 30 Sep 2018 Emaar Group Balance Sheet Overview Change in Cash & Cash Equivalents % AED Million Total: AED 112.82 BN Bank Balances & Trade & Other 12 Cash 16 Payables Trade & Other Advances from 18 C
Slide 9: Credit Ratios as of Sep 2018
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Credit Ratios as of 30 Sep 2018 EBITDA / Interest Net Debt / EBITDA 10.8X 1.07X 10.6X 9.9X 0.01X 0.06X * * * 2016 2017 9M 2018 2016 2017 9M 2018 Net Debt / Equity Debt / GAV 18.9% 20.9% 18.9% 18.0% 0.2% 0.8% 2016 2017 9M 201
Slide 10: UAE Development
UAE Development
Slide 11: UAE Development: 9M 2018 Launches
Key Highlights Income Statement Balance Sheet Operational Overview Appendix UAE Development Overview Successfully launched 8 new projects in Dubai during 9M 2018 with a total value of c.AED 9.0Bn Beach Vista Sunrise Bay Marina Vista c.AED 10.0Bn of sales booked and c.4,100 units 9M 2018 Launches sol
Slide 12: UAE Development - at a glance
Key Highlights Income Statement Balance Sheet Operational Overview Appendix UAE Development - at a glance Overview of Emaar Development Master plans Emaar spearheaded the development of freehold Downtown Dubai master planned lifestyle communities in Dubai Arabian Ranches About 35,100 residential
Slide 13: UAE Development - The strategy
Key Highlights Income Statement Balance Sheet Operational Overview Appendix UAE Development - The strategy Emaar Properties Emaar Development Holding company with diversified portfolio Focus on being a pure UAE developer of comprising leasing and operating businesses projects for build-to-sell c
Slide 14: UAE Development - Overview
Key Highlights Income Statement Balance Sheet Operational Overview Appendix UAE Development - Overview 100% 100% Owned Developments Consolidated JVs/JDA with 50% Share Others JV Ras Al Khaimah and Lusaily (5) Downtown Arabian Dubai Emirates Emaar Dubai Emaar (100% owned land bank) (6) Dubai Hills (4
Slide 15: Emaar Development - Financial Performance
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Development - Financial Performance AED Million CAGR CAGR +41% +27% +54% +58% Gross Revenue 8,863 10,033 3,761 4,345 6,899 Profit 6,508 2,861 2,750 5,253 2,395 1,841 3,140 2014 2015 2016 2017 9M-2018 9M-2017 2014 2015
Slide 16: International Development
International Development
Slide 17: International Development
Key Highlights Income Statement Balance Sheet Operational Overview Appendix International Development Overview International Sales Units Released 1,386 Mn AED 2.7Bn Emaar Misr 93 7 12,845 SQFT of land bank in key properties sold in Emaar Turkey 66 34 1,185 9M 2018 countries Emaar India 84 16 22,400
Slide 18: Emaar Misr for Development
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Misr for Development(1) AED Million EGP Million Key Highlights 9M 2018 9M 2017 % Change 9M 2018 9M 2017 % Change Delivered 649 units in 9M 2018 Achieved sales of EGP 9.09 Bn Units Launched 1,000 1,266 (21%) 1,000 1
Slide 19: Emaar Malls
Emaar Malls 28 February H1 2018 Results Presentation 2019 Page 18
Slide 20: Emaar Malls – Key Highlights
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Malls – Key Highlights CONSOLIDATED FINANCIAL RESULTS +29% +10% +9% Revenue EBITDA(1) Net profit(1) 9M-18: 3,232 Mn(2) 9M-18: 2,136 Mn(2) 9M-18: 1,639 Mn(2) 9M-17: 2,500 Mn 9M-17: 1,939Mn 9M-17: 1,507 Mn EMAAR MALLS NA
Slide 21: Emaar Malls - Performance
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Malls - Performance 9M 2018 9M 2017 % Change Key Highlights GLA Emaar Malls records 4% growth in footfall 6.7 5.8 16% YoY to 99 million visitors (Mn SQFT) Fashion Avenue & Springs welcomed Occupancy Rate 93% (1) 95
Slide 22: Hospitality Group
Hospitality Group
Slide 23: Hospitality Segment
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Hospitality Segment 9M 2018 9M 2017 % Change Key Highlights Occupancy Rate (%)* 70% 76% (8%) Address Downtown reopened in June 2018 RevPar 723 855 (15%) (AED)* Rove Dubai Marina welcomed first Room Revenue guest in April
Slide 24: Emaar Hospitality Group: Asset Performance Breakdown
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Hospitality Group: Asset Performance Breakdown (1) (2) Address Boulevard The Palace Downtown Address Dubai Mall 9M 2018 9M 2017 9M 2018 9M 2017 9M 2018 9M 2017 Available Room Nights 53,508 41,944 66,066 66,066 66,612 6
Slide 25: Summary
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Summary Financial Total group sales at AED 12.7 Bn in 9M 2018 with the total backlog of AED 50.7 Bn, Performance Emaar is on track to boost profitability in the coming years Emaar Strong sales of AED 10 Bn in 9M 2018 acr
Slide 26: Appendix
NW end Appendix
Slide 27: Appendix A – Overview of Divisions and Strategy
Appendix A – Overview of Divisions and Strategy
Slide 28: Overview of Divisions of Emaar Properties
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Overview of Divisions of Emaar Properties Property UAE Entertainment & Development Emaar Malls PJSC Hospitality Group Development Leasing International • Leading master plan • Active in 10 targeted • Listed on DFM since • Ho
Slide 29: Strategy
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Strategy Consolidate Emaar’s position as of the largest developer of iconic projects in Dubai. UAE Enter into joint ventures in UAE to get access to significant land bank, limiting need for immediate cash outlays for lan
Slide 30: Appendix B – Overview of UAE Development
Appendix B – Overview of UAE Development
Slide 31: Projects overview
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Projects overview at 30 Sep 2018 Wholly-owned projects Downtown Dubai Arabian Ranches Dubai Marina All under-construction projects (including Sky Expansion of the current Arabian Ranches Two waterfront residential/commercial
Slide 32: Projects overview
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Projects overview at 30 Sep 2018 Wholly-owned projects Emirates Living Emaar Beachfront * Green-focused development featuring two low-rise apartment An exclusive residential community within the new maritime epicentre buildi
Slide 33: Projects overview (cont’d)
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Projects overview (cont’d) at 30 Sep 2018 100% consolidated JV JVs/JDAs with 50% share Dubai Hills Estate Dubai Creek Harbour Emaar South Zabeel Square Joint Venture between Emaar and Joint Venture between Emaar and Joint Ve
Slide 34: Projects overview (cont’d)
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Projects overview (cont’d) at 30 Sep 2018 Land bank (100% owned) Al Marjan - Ras Al Khaimah Lusaily A project of c.1m sqft of land located at the top of Al Marjan Island A contiguous land parcel of 46m sqft subdivided into t
Slide 35: Overview of projects under development
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Overview of projects under development at 30 Sep 2018 Amount Area % Unit % Value % Collected of % Completion % Gross Margin Project (100% Owned) Units Launched Period (AED) (1) (SQF) Sold Sold sold units Sep.18 Sep.18 (2) Do
Slide 36: Overview of projects under development (Cont’d)
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Overview of projects under development (Cont’d) at 30 Sep 2018 Amount Area % Unit % Value % Collected of % Completion % Gross Margin Project (Joint Ventures) Units (1) Launched Period (2) (AED) (SQF) Sold Sold sold units Sep
Slide 37: Location of Development Projects
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Location of Development Projects Al Marjan, Ras Al Khaimah Emaar Beachfront(1) Zabeel Square Zaabeel Lusaily 2 Q3 2018 Results Presentation 28 February 2019 Page 36 1) Emaar Beachfront partial acquisition completed and launc
Slide 38: Location of Development Projects: Downtown Dubai
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Location of Development Projects: Downtown Dubai 1 The Address Sky View 2 The Address Fountain Views 3 The Address The BLVD 4 Burj Vista 6 5 The Address Residences Dubai Opera 6 Rove Hotel (Downtown) 14 55 7 Il Primo 8 Opera
Slide 39: Location of Development Projects: Arabian Ranches
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Location of Development Projects: Arabian Ranches 1 Al Reem 1 2 Al Reem 2 3 Al Reem 3 4 Saheel 5 Golf Homes 6 Dubai Polo Club 7 Mirrador La Coleccion 1 1 8 Mirrador La Coleccion 2 3 9 Hattan 10 27 26 Alvorada 1 2 25 11 Alvor
Slide 40: Location of Development Projects: Dubai Hills
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Location of Development Projects: Dubai Hills (JV with Meeras) Q3 2018 Results Presentation 28 February 2019 Page 39
Slide 41: Location of Development Projects: Dubai Creek
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Location of Development Projects: Dubai Creek (JV with Dubai Holding) Q3 2018 Results Presentation 28 February 2019 Page 40
Slide 42: Overview of Expected UAE Delivery Schedule
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Overview of Expected UAE Delivery Schedule (based on project launched till 30 Sep 2018) Under Development Delivery Schedule Under Completed Cumulative Development 2018 2019 2020 2021 2022 till 2017 - A - Emaar Development (f
Slide 43: Overview of Land Bank in UAE
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Overview of Land Bank in UAE (as at 30 Sep 2018) Land Bank Evolution Though Investments & Strategic Partners YEAR AREA 2012 Arabian Ranches II 2013 Dubai Hills Estate (million sq ft) GFA BTS 2011-2017 Multiple CAGR 2014 Duba
Slide 44: Accounting Treatment
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Accounting Treatment Emaar Development Dubai Hills Dubai Creek Emaar South & Full revenue and Fully consolidated Joint Development Zabeel Square cash flow from by Emaar under Agreement Equity accounted 100% owned IFR
Slide 45: Appendix C – Overview of International Development
Appendix C – Overview of International Development
Slide 46: Overview of International Expected Delivery Schedule as of Sep 2018
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Overview of International Expected Delivery Schedule as of Sep 2018 Under To be Cumulative Country Entity Completed Q4 2018 2019 2020 2021 2022 Development developed till Sep 2018 Subsidiaries Emaar Misr 5,405 7,440 7,211 5,
Slide 47: Overview of International Land Bank
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Overview of International Land Bank Gross Land Area International Land Bank (Million SQFT) Saudi Arabia (Emaar Economic City) 1,120.05 Saudi Arabia (Emaar Middle East) 34.99 India (Emaar MGF) 153.39 Egypt 51.85 Pakistan 16.3
Slide 48: Emaar Hospitality Group Portfolio
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Hospitality Group Portfolio Residences in Hotel Hotel Management Company Classification Keys Operational Pool (6) Emaar Hospitality Group Hotel Portfolio Dubai Armani Hotel at Burj Khalifa Armani Hotel - Dubai 5 Star 1
Slide 49: Emaar Hospitality Group: Hotels / Apartments Under Development
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Hospitality Group: Overview of Hotels / Apartments Under Development Serviced Estimated Hotel Location Launch Keys (1) Apartments Completion Vida Residences Downtown 2013 NA 328 2018 Address Sky View Downtown 2013 169
Slide 50: Appendix E – Overview of Fair Valuation
Appendix E – Overview of Fair Valuation
Slide 51: GAV by Segment
Key Highlights Income Statement Balance Sheet Operational Overview Appendix GAV by Segment December 2017 Book Value Split December 2017 Fair value Split Others Associates 1% 2%4% 3% 5% 7% Emaar Hospitality 33% 40% Retail & Leasing 19% 36% UAE Development 28% 21% International Development Total: AED
Slide 52: GAV by Segment (cont’d)
28 February 2019 Appendix Key Highlights Income Statement Balance Sheet Operational Overview GAV by Segment (cont’d) GAV: Development Properties GAV: Fixed Assets 2017 2016 2017 2016 Book Fair Book Fair Book Fair Book Fair AED Million AED Million Value Value Value Value Value Value Value Value UAE 1
Slide 53: NAV Table
28 February 2019 Appendix Key Highlights Income Statement Balance Sheet Operational Overview NAV Table 2017 2016 Book Value Fair Value Book Value Fair Value Cash and bank balances 21,103 21,103 17,289 17,289 Trade and Other Receivables 13,930 13,930 10,576 10,576 Development Properties 35,252 64,366
Slide 54: Appendix F – Group Structure
Appendix F – Group Structure
Slide 55: Emaar Properties PJSC Group Structure
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Properties PJSC Domestic Real Leisure & International Malls Hospitality Others Estate Entertainment Emaar Emaar Emaar Malls PJSC Emaar Hospitality Emaar Hotel & District Cooling Development PJSC Turkey (100%) Egypt (88