Emaar Properties (P.J.S.C) · DFM:EMAAR
Emaar Properties (P.J.S.C) — Emaar Properties — Q1 2021 Earnings Presentation
60 slides from Emaar Properties (P.J.S.C)'s earnings presentation, May 2021
Slide 1: Prepared for the Future
Prepared for the Future Built on Strength, Prudence & Resilience. Investor Presentation May 2021 0 | EMAAR PROPERTIES
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: Discussion Summary
Discussion Summary Investing In Emaar Expanding Footprint in UAE & International Markets Business Strategy & Outlook Q1 2021 Results Update Annexure 2 | EMAAR PROPERTIES
Slide 4: Investing In Emaar
Investing In Emaar 3 | EMAAR PROPERTIES
Slide 5: Emaar Purpose & Business Model
Emaar Purpose & Business Model An Enduring Enterprise Our Business Model: driven by: We operate a business model that puts risk mitigation at the centre of our core strategies. We create value by providing high quality and highly desirable environments, • Vision to redefine engineering which help ou
Slide 6: A Globally Admired Real Estate Company
A Globally Admired Real Estate Company Creator of World-Renowned Architectures Landmark Hospitality Assets Burj Khalifa – Tallest Building in the World 28 Hotels with c. 6,038 keys Established brands: Address Hotels & Resorts, Dubai Mall – Most Visited Mall in the World (Owner) Vida Hotels & Resorts
Slide 7: Diversified Real Estate Play In UAE & International Markets
Diversified Real Estate Play In UAE & International Markets Resilient Business Model With Strong Growth Potential Total Revenues In AED Mn 16% 25,689 ✓ Consistent growth delivered in difficult market 23,911 environment post 2014 oil price crash 17,959 18,548 15,118 15,412 12,936 ✓ Good business mix
Slide 8: Strong Balance Sheet
Strong Balance Sheet Solid Credit Profile with very Comfortable Net Debt-to-Equity and Debt Coverage AED Million Q1 2021 Comfortable Debt Maturity Profile – Mar 2021 Debt 21,509 Cash 7,125 2 7,336 Net Debt 14,384 Equity 64,942 4,743 Total Assets 120,233 2 3,908 3,230 2,145 Key Ratios Q1 2021 166 Deb
Slide 9: Emaar In “The Value Zone”
Emaar In “The Value Zone” Emaar Properties is Trading at Significant Discount to its NAV despite Superior Financial Metrics 57% -46% Market Cap (AED Bn) -50% Premium / (Discount) to BV 52.0 -73% 28.0 2 Premium / (Discount) to NAV 1 2014 Q1-2021 8 | EMAAR PROPERTIES 1) Market valuation based on share
Slide 10: Sum of The Parts Valuation Analysis
Sum of The Parts Valuation Analysis Emaar’s market cap 1 Emaar’s share of Listed companies > AED 28 Bn AED 36 Bn 35.7 9.4 Current share price implies deep holding company 35.7 discount and 21.3 negative valuation given to Emaar’s unlisted 2.1 (7.7) businesses 2.7 0.2 Emaar Emaar Dev. Emaar Malls Ema
Slide 11: Expanding Footprint in UAE & International Markets
Expanding Footprint in UAE & International Markets 10 | EMAAR PROPERTIES
Slide 12: 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’
Slide 13: Having Stood Multiple Tests of Time
…Having Stood Multiple Tests of Time Emaar’s Unique Proposition of Integrated Masterplans and Superior Quality helped to Deliver Consistent Performance in UAE Emaar’s Sales – Ahead of the Competition (~3x in 2020) In AED Bn 18.0 14.4 14.4 14.9 ✓ Displayed strong sales traction, despite difficult mar
Slide 14: Renowned For Its Iconic Retail Assets
Renowned For Its Iconic Retail Assets… The Dubai Mall – Most Visited Mall in the World ✓ World renowned shopping & entertainment destination ✓ 4.3 Mn sq. ft. GLA1 (incl. Fashion Avenue Expansion) ✓ 92% Occupancy1 ✓ 1,200+ stores with leading retailers and marquee global brands ✓ Resilient footfalls
Slide 15: Delivering Robust Growth
…Delivering Robust Growth Emaar Malls Delivered Consistent Growth over 2012 to 2019 Robust Growth in Footfalls… ✓ Preferred gateway to Dubai’s consumerism for aspiring retailers and brands 6,095 5,969 6,090 5,158 5,295 5,371 5,423 5,419 5,368 ✓ Urban lifestyle destination and unique retail experienc
Slide 16: Complemented By Immersive Entertainment Avenues
…Complemented By Immersive Entertainment Avenues Entertainment Business: Major Tourist Attractions driving Footfalls at The Dubai Mall Robust Growth & Superior Margins In AED Mn ✓ At The Top, world’s highest observation desk 66.6% 67.7% 68.6% 62.6% 58.7% 58.9% 59.4% ✓ Dubai Aquarium & Underwater Zoo
Slide 17: Hospitality Assets Deliver Steady Performance
Hospitality Assets Deliver Steady Performance Steady Performance in a Difficult Market Environment Emaar Hotels: Hospitality Business: Resilient & Profitable In AED Mn ✓ Able to maintain healthy EBITDA margin in a weak market with operating costs under control 37.9% 30.8% 33.7% ✓ Hospitality sector
Slide 18: Replicating Our Success In International Markets
Replicating Our Success In International Markets Leverage Emaar’s Strength And Unlock the Land Bank Potential in Key International Markets Development Retail Entertainment Hospitality ✓ c. 41,000 units sold & c. 26,300 units ✓ Own & operate iconic ✓ Launch entertainment ✓ Adopt an asset-light delive
Slide 19: Business Strategy & Outlook
Business Strategy & Outlook 18 | EMAAR PROPERTIES
Slide 20: Top Priorities
Top 3 Priorities Maintain Leadership Position in Our Markets Focus on Execution & Cash Flow Generation Focus on Maximising Shareholder Returns 19 | EMAAR PROPERTIES
Slide 21: UAE Development Strategy: Consolidate and Prepare for the Next Growth Phase
UAE 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 • Tim
Slide 22: UAE Retail Strategy: Multi-format Omni-channel Growth Strategy
UAE Retail Strategy: Multi-format Omni-channel Growth Strategy Leverage Superior Asset Mix Robust Retail Space Growth • Offer diverse retailing experience - super-regional malls, • Well-planned extensions at The Dubai Mall to enhance regional malls, specialty retail, community retail centers custome
Slide 23: UAE Retail Strategy: Adopt Low-Risk Model For Future Expansions
UAE Retail Strategy: Adopt Low-Risk Model For Future Expansions Projects under Emaar Malls Operate As Pure Rental Income Play GLA Expected Project Name • Pure Rental Income Play (‘000 sq.ft.) Opening • Focus on rental income growth and cash flow generation TDM Boulevard Expansion c. 110 H2 2021 • Mi
Slide 24: Q1 2021 Results Update
Q1 2021 Results Update 23 | EMAAR PROPERTIES
Slide 25: Q1 2021 Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Q1 2021 Key Highlights Overall Property Sales Revenues EBITDA at AED 7.1 Bn AED 6.0 Bn AED 2.0 Bn (83% increase Vs. Q1’20) UAE Property Sales at AED Net Profit 23% Recurring Revenues 5.9 Bn AED 0.7 Bn 40% Re
Slide 26: Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Key Highlights AED Million Q1 2021 Q1 2020 % Change Group Property Sales 7,115 3,887 83% Revenue 5,993 5,328 12% Gross Profit 2,680 2,410 11% Margin (%) 44.7% 45.2% - EBITDA 1,977 1,390 42% Margin (%) 33.0%
Slide 27: Segment Analysis
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Segment Analysis Segment Wise Revenues (AED Mn) Revenue Share % EBITDA Share % +12% 5% 5,993 3% 5% 7% 167 15% 3% 301 5,328 884 326 AED AED 365 5,993 Mn 1,977 Mn 13% 25% 788 - 49% 60% 963 64% - 18% 580 - 8% 3
Slide 28: Historical Trend
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Historical Trend In AED Mn Revenues Gross Profit CAGR* 16% CAGR* 13% 25,689 12,898 23,912 11,427 18,547 17,959 9,295 15,117 7,960 13,098 7,035 6,533 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 202
Slide 29: Balance Sheet & Cash Flow Overview
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Balance Sheet & Cash Flow Overview Balance Sheet Overview Cash Flow Overview In AED Mn Total: AED 120,233 Mn Bank Balances & Cash 6% (987) 16% Trade & Other Payables 2,417 Trade & Other (817) 6,378 23% 1 Rec
Slide 30: Emaar Development – Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Emaar Development – Key Highlights 1 AED Million Q1 2021 Q1 2020 % Change Q1 2021 Revenue Breakup Property Sales 5,884 2,857 106% Revenue 3,848 3,045 26% 23% Gross Profit 1,513 1,129 34% 3,848 M Margin (%) 3
Slide 31: UAE Development – Current Project Status
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development UAE Development – Current Project Status 100% Owned Developments 100% Consolidated JV JV/JDAs with 50% Share Others Ras Al Khaimah (100% owned land Downtown Arabian Dubai Emaar Dubai Mina Dubai Emaar Dubai 4
Slide 32: Emaar Development – Historical Trend
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Emaar Development – Historical Trend In AED Mn Revenues Gross Profit 6,700 15,433 12,746 5,061 8,863 9,758 3,761 3,478 6,899 2,861 5,253 2,395 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 EBIT
Slide 33: International Development – Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development International Development – Key Highlights International Sales – Units Released c. AED 16.7 Bn c. AED 1.2 Bn Revenue Backlog1 Sales booked in Q1’21 92% 8% 15,526 To be recognized over (18% increase vs. Q1’20
Slide 34: International Development – Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development International Development – Key Highlights Emaar Misr – Development1 Key Highlights AED Million EGP Million • Delivered 241 units in Q1’21 Q1 2021 Q1 2020 % Change Q1 2021 Q1 2020 % Change • Property sales g
Slide 35: Emaar Malls – Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Emaar Malls – Key Highlights1 Excl. Namshi AED Million Q1 2021 Q1 2020 % Change AED Million Q1'21 Q1'20 % Change Revenue 884 963 (8%) GLA (Mn sq. ft.) 6.8 6.6 2% Gross Profit 653 747 (13%) Occupancy Rate % 8
Slide 36: Emaar Malls (Excl. Namshi) – Historical Trend
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Emaar Malls (Excl. Namshi) – Historical Trend In AED Mn Rental Income EBITDA 3,599 3,647 3,227 3,323 2,934 2,952 2,992 2,676 2,447 2,250 2,192 1,407 1 1 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019
Slide 37: Namshi – Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Namshi – Key Highlights Namshi Revenues 1 (AED Mn) Namshi Key Statistics 2 CAGR 24% Net Merchandise 1,316 Gross Margin Value 36% + 6% 1,028 849 730 Active Customers Online Traffic + 4% + 30% 555 440 Number o
Slide 38: Emaar Hospitality – Key Highlights
Consolidated International UAE Development Emaar Malls Emaar Hospitality Results Development Emaar Hospitality – Key Highlights AED Mn Q1'21 Q1'20 % Change Q1 2021 Revenue Breakup Occupancy Rate (%)* 62% 70% Room Revenue RevPar (AED)* 388 522 (26%) F&B and Other Revenue Room Revenue 105 146 (28%) 39
Slide 39: Annexure
Annexure 39 | EMAAR PROPERTIES
Slide 40: Emaar Group – Divisions Overview
Emaar Group – Divisions Overview UAE Entertainment & International Operations Emaar Malls Emaar Hospitality Development Leasing • Leading master plan • Active in 10 targeted high • Emaar Malls PJSC is • Hotel owner and operator • Provider of premium developer in Dubai growth countries listed on DFM
Slide 41: UAE Development – Projects Overview
UAE Development – 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 current Arabian
Slide 42: UAE Development – Projects Overview
UAE Development – Projects Overview 100% Consolidated JV JVs/JDAs with 50% share Dubai Hills Estate Mina Rashid Dubai Creek Harbour Emaar South Zabeel Square Joint Venture between Emaar Joint Venture between Emaar Joint Development Agreement Joint Venture between Emaar Joint venture between Emaar an
Slide 43: UAE Development – Projects Under Development
UAE Development – Projects Under Development % 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 Mar-21 Mar-21² Handover Handover Downtown Du
Slide 44: UAE Development – Projects Under Development
UAE Development – Projects Under Development % 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 Mar-21 Mar-21² Handover Handover Dubai H
Slide 45: UAE Development – Projects Under Development
UAE Development – Projects Under Development % 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 Mar-21 Mar-21² Handover Handover Dubai C
Slide 46: UAE Development – Completed Projects
UAE Development – Completed Projects1 Project Value Area % Collected of sold % Remaining Collections Project (100% Owned) Units % Unit Sold % Value Sold (AED Mn)(2) (SQF) value of Sold Value Downtown Dubai 5,132 20,488 7,593,935 97% 96% 95% 5% Blvd Heights 550 1,809 773,089 90% 84% 81% 19% Address S
Slide 47: UAE Development – Completed Projects
UAE Development – Completed Projects1 Project Value Area % Collected of sold % Remaining Collections Project (Joint Ventures) Units % Unit Sold % Value Sold (AED Mn)(2) (SQF) value of Sold Value Dubai Hills Estates 6,203 21,424 19,567,006 95% 95% 79% 21% Park Heights I 270 317 216,135 93% 86% 61% 39
Slide 48: UAE Development – Location of Development Projects
UAE Development – Location of Development Projects 48 | EMAAR PROPERTIES
Slide 49: UAE Development – Expected Delivery Schedule (Units)
UAE Development – Expected Delivery Schedule (Units) Under Development Delivery Schedule Under Completed Apr-Dec Development Q1'2021 2022 2023 2024 2021 - A - Emaar Development (fully consolidated) Downtown* 14,216 7,494 - 773 3,826 2,895 - Emaar Beachfront - 2,570 - 917 624 - 1,029 Dubai Marina 4,4
Slide 50: UAE Development – Land Bank Details
UAE Development – Land Bank Details Land Bank Evolution through Investments & Strategic Partnerships Year Area 2012 Arabian Ranches II (million sq ft) GFA BTS 2011- 2020 Multiple CAGR 2013 Dubai Hills Estate ~22x ~45% 2014 Dubai Creek Harbour 2015 Emaar South 369 369 2016 Downtown Views, Ras Al Khai
Slide 51: International Development – Expected Delivery Schedule
International Development – Expected Delivery Schedule Under To be Cumulative Apr- Country Entity Completed 2022 2023 2024 2025 Development developed till Mar 2021 Dec'21 Subsidiaries Emaar Misr 8,323 6,717 8,371 8,263 1,305 2,851 1,987 1,283 495 Emaar Middle 936 - - 755 55 57 69 - - East Emaar Turk
Slide 52: International Development – Land Bank Details
International Development – Land Bank Details Gross Land Area International Land Bank (Million SQFT) Saudi Arabia (Emaar Economic City) * 1,119.41 Saudi Arabia (Emaar Middle East) 2.91 India (Emaar India) 151.85 Egypt 49.72 Pakistan 11.79 Turkey 5.25 Lebanon 2.00 Total Key International Markets 1,34
Slide 53: 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 Mina Rashid – • 100% consolidation • 100% consolidation • Neutral impa
Slide 54: Hospitality Group – Current Portfolio
Hospitality Group – Current Portfolio Residences in Hotel Hotel Management Company Classification Keys Operational Pool (5) Emaar Hospitality Group Hote l Portfolio Dubai Armani Hotel at Burj Khalifa Armani Hotel - Dubai 5 Star 160 23 2010 Address Downtown Dubai TAH&R(2) 5 Star 220 193 2008 Address
Slide 55: Hospitality Group – Hotels / Service Apartments Under Development
Hospitality Group – Hotels / Service Apartments Under Development1 Serviced Estimated Hotel Location Launch Keys 2 Apartments Completion Rove City Walk City Walk 2018 564 3 NA 2021 Vida Dubai Marina Dubai Marina 2017 158 360 2022 Vida Dubai Mall Downtown 2017 195 380 2022 1) Represents hotels / serv
Slide 56: Fair Valuation Overview – GAV By Segment
Fair Valuation Overview – GAV By Segment December 2020 Book Value Split December 2020 Fair Value SalesSplit Sales 1% 4% 3% 1% 6% 5% 37% 22% 43% 34% 24% 20% Total AED 118 Bn Total AED 179 Bn UAE Development International Development UAE Development International Development Retail & Leasing Hospitali
Slide 57: Fair Valuation Overview – GAV By Segment (Cont’d)
Fair Valuation Overview – GAV By Segment (Cont’d) GAV: Development Properties GAV: Fixed Assets 2020 2019 2020 2019 Book Fair Book Fair Book Fair Book Fair AED Million AED Million Value Value Value Value Value Value Value Value UAE 21,962 37,586 22,365 36,644 Hotels & Egypt 5,415 8,778 4,102 7,523 5
Slide 58: Fair Valuation Overview – NAV Table
Fair Valuation Overview – NAV Table In AED Mn 2020 2019 Book Value Fair Value Book Value Fair Value Cash and bank balances 6,271 6,271 6,796 6,796 Trade and Other Receivables 27,277 27,277 25,815 25,815 Development Properties 40,933 64,952 41,704 63,745 Investment in Associates and Joint Ventures 4,
Slide 59: Group Structure
Group Structure 59 | EMAAR PROPERTIES
Slide 60: Thank You
Thank You EMAAR PROPERTIES Name – Abhay Singhvi Email id - [email protected] 60 | EMAAR PROPERTIES