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

Emaar Properties (p.j.s.c) — Investor Presentation (December 2011)

46 slides from Emaar Properties (p.j.s.c)'s investor presentation, Dec 27, 2011

  1. Slide 1: Emaar Properties PJSC Corporate Presentation

    Emaar Properties PJSC Corporate Presentation December 27th, 2011 © Emaar 2008

  2. Slide 2: Emaar Overview

    EMAAR OVERVIEW © Emaar 2011 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 16.5 bn (US $4.48 bn) Revenues: FY 2009 AED 8.4 bn (US $2.29 bn) FY 2010 AED 12.15 bn (US $ 3.31 bn) 9M 2011 AED 5.87 bn (US $1.6 bn) Net Operating Profit: FY 2009 AED 2.3 bn (U

  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. In the UAE we have over 20* million sqm of land. Our international la

  5. Slide 5: Emaar's Business Strategy

    EMAAR‟s Business Strategy • Emaar‟s medium term strategy will continue to focus on monetising core assets when they are of sufficient size, with the ultimate aim of providing these business units with further growth capital. • In Dubai, Emaar will re-focus on affordable housing for mid income earner

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

    EMAAR‟s Group 2011 Performance Highlights Performance highlights/Key Achievements during 2011 included: • Armani Hotel: Official opening of the second Armani Hotel in Milan, Italy • Dubai and International RE: Hand over of 704 units in Dubai and international during 9M 2011 including 201 Units in Q3

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

    EMAAR‟s Group 2011 Performance Highlights Cont‟d Profitability | Stable performance in tough market conditions • Revenues for 9M 2011 were AED 5.87 bn (versus 9M 2010 AED 8.32 bn) • Net Operating Profit 9M 2011 was AED 1.25 bn (versus 9M 2010 AED 2.34 bn) Balance Sheet as at 30 Sept 2011 | remains r

  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 Cumulative Number Units Delivered 40,000 35,000 33,691 32,987 29,454 30,000 26,378 25,000 18,203 17,813 21,402 14,686 20,000 12,152 16,192 8,217 15,000 12,918 5,965 10,000 4,870 14,226 14,768 15,173 15,488 13,185 5,000 10,227 8,048 - 2005 2006 2007 2008 2009 2010 9M 2011 V

  10. Slide 10: Investment Highlights

    INVESTMENT HIGHLIGHTS © Emaar 2011 10

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

    Shareholder‟s Value – NAV Computation (AED million) 2010 2009 Book value Fair value Book value Fair value Cash and bank balances 5,042 5,042 2,267 2,267 Trade and other recievables 3,757 3,757 4,192 4,192 Development properties 26,492 45,543 31,076 50,556 Investment in associates 7,592 7,237 7,861 8

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

    Shareholder‟s Value – NAV Computation (AED million) 2010 2009 Net Asset Value as per consolidated balance sheet (AED 31,069 28,677 millions) Add : Fair value in excess of book value for Development 17,332 17,306 properties (AED millions) Add : Fair value of assets in excess of book value for 5,155 6

  13. Slide 13: Evolution of Emaar Group Revenue

    Evolution of Emaar Group Revenue 9,641 10,000 8,401 90% 8,000 69% 5,675 AED millions 6,000 67% 4,000 2,776 2,279 2,354 2,101 23% 2,000 1,240 1,076 25% 973 39% 40% 637 10% 8% 21% - 7% - 2008 2009 2010 9M 2011 Dubai Operations Leasing & Hospitality International (including UAQ) © Emaar 2011 13

  14. Slide 14: Fair Value of Development Properties

    Fair Value of Development Properties (AED million) 2010 2009 Book value Fair value Book value Fair value UAE 14,933 20,258 20,436 27,481 Egypt 4,531 12,538 4,210 9,361 India 64 2,902 73 2,935 Turkey 2,424 2,758 2,245 2,482 KSA 1,734 2,462 1,570 3,219 Pakistan 613 1,383 523 1,400 Lebanon 366 980 329

  15. Slide 15: Fair Value of Investment Properties

    Fair Value of Investment Properties (AED million) 2010 2009 Book value Fair value Book value Fair value Dubai Mall & Marina Mall 6,807 10,855 7,075 11,166 Burj Dubai (Souk Al Bahar and other 392 681 403 894 retail locations) Burj Dubai Business Square 166 527 373 1,427 Gold & Diamond Park 181 373 18

  16. Slide 16: Fair Value of Fixed Assets

    Fair Value of Fixed Assets (AED million) 2010 2009 Book value Fair value Book value Fair value Hotels, Convention centre & Service 4,064 5,019 2,762 3,339 Appartments District Cooling Plant 383 383 406 406 Emaar Business Park 107 271 113 541 At The Top 143 143 - - Leisure and Entertainment & Medical

  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 55 8.79 10 8.9 Net asset value (including FV of 40 DP, Assets and market value of 8 listed securites) 30 Net asset value per share 31 6 28 29 20 4 10 2 0 0 2008

  18. Slide 18: Regional Operations

    REGIONAL OPERATIONS © Emaar 2011 18

  19. Slide 19: Property Development: UAE

    Property Development: UAE • Government Support: Historic land grants and 32% shareholding • Large Land Bank:* 20 million sqm • Partnership with Quality Arabtec, Nasa Multiplex, Samsung, Al Developers: Futtaim Carillion. • Established Reputation: Timely deliveries of high quality properties • Track R

  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. The majority of developments under construction will complete within the next 2 years • Pre-sales model utilised, with the cash inflows from customer

  21. Slide 21: Regional Business Highlights

    Regional Business Highlights Projects Units under Deliveries 2011 Deliveries 2012 Deliveries 2013 development Downtown Dubai 2,016 - 1,267 749 Downtown Dubai Commercial units (Sq Ft) 1,333,210 954,677 378,533 - Dubai Marina Commercial units (Sq Ft) 758,237 758,237 - - Umm Al Quwain 277 277 - - Arabi

  22. Slide 22: International Operations

    INTERNATIONAL OPERATIONS © Emaar 2011 22

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

    International RE – Unit Sales to Date Emaar has achieved an overall sales level of 80% in its International business Units Unit Sale % sales Country Entity Released achieved achieved Egypt Emaar Misr for Development S.A.E. 2,587 2,016 78% KSA Emaar Middle East 434 319 74% Pakistan Emaar DHA Islamaba

  24. Slide 24: International Business Highlights

    International Business Highlights To be Units Units Under Deliveries Deliveries Deliveries Deliveries Deliveries Country Entity Developed Completed Development 2009 2010 2011 2012 2013 2011-2013 Subsidiaries Egypt Emaar Misr 107 2,081 3,425 - 100 129 958 836 Emaar Middle KSA 32 523 866 - 31 56 159 1

  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 2011 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 86% across all assets (Sep 2011) and significant interest on remaining units resulted from success of The Dubai Mall. In term

  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 as measured by footfall in Dubai since opening in Nov-08. The Mall recorded 48.6 million visitors until November 2011 and highest-

  29. Slide 29: Dubai Mall Footfall Trend

    Dubai Mall Footfall Trend Dubai Mall Average Monthly Footfall 5.00 4.50 No. of visitors in million 4.00 4.47 4.15 4.17 4.26 4.20 3.50 3.75 3.00 3.57 3.42 2.50 2.78 2.00 2.27 1.50 1.74 1.00 0.50 0.00 Q1 - Q2 - Q3 - Q4 - Q1 - Q2 - Q3 - Q4 - Q1 - Q2 - Q3 - 2009 2009 2009 2009 2010 2010 2010 2010 2011 2

  30. Slide 30: At The Top Footfall Trend

    At The Top Footfall Trend At The Top - Footfall 450 400 384 350 No. of visitors in millions 315 300 246 242 250 219 200 150 97 100 50 0 1QTR 2QTR 3QTR 2010 2011 © Emaar 2011 30

  31. Slide 31: Emaar Hospitality Group

    Emaar Hospitality Group Management Capacity Current Projects Category Operational Company Rooms Dubai Armani Hotel at Burj Khalifa EH&R(1) 5 Star 160 2010 Armani Hotel, Milan, Italy EH&R(1) 5 Star 95 2011 The Address Downtown Dubai TAH&R(2) 5 Star 196 2008 Al Manzil Hotel Southern Sun 4 Star 197 200

  32. Slide 32: Emaar Hospitality Group

    Emaar Hospitality Group YTD November 2011 The Address The Address The Address The Palace Al Manzil Qamardeen Downtown Dubai Mall Dubai Marina No of rooms - YTD 65,494 80,828 81,496 66,800 65,798 62,124 Occ% 90% 81% 82.7% 73.6% 82.4% 77.5% ADR 1,434 1,130 1,237 813 654 559 Revpar 1,292 920 1,023 599

  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 secured exclusive license rights of the “Armani” brand for dev

  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 83.7% in 11M 2011 between both properties achieving an

  35. Slide 35: Financial Highlights

    FINANCIAL HIGHLIGHTS © Emaar 2011 35

  36. Slide 36: Financial Performance – AED millions

    Financial Performance – AED millions Q3-11 Q2-11 % Q3-11 Q3-10 % 9M-11 9M-10 % Revenue 1,859 2,032 (9%) 1,859 2,782 (33%) 5,873 8,320 (29%) Gross Profit 975 967 1% 975 1,030 (5%) 2,966 3,354 (12%) SGA (461) (398) 16% (461) (446) 3% (1,318) (1,395) (6%) Other (expense)/income (44) 7 (729%) (44) 118 (

  37. Slide 37: Balance Sheet and Ratio Analysis

    Balance Sheet and Ratio Analysis AED million 2007 2008 2009 2010 9M 2011 Current Assets 12,030 9,351 5,915 8,014 6,428 Fixed Assets and Investment properties 13,069 18,662 15,368 16,649 16,398 Other Assets 35,874 38,667 42,862 37,841 37,298 Total Assets 60,973 66,680 64,145 62,504 60,124 Interest Be

  38. Slide 38: Thank You

    THANK YOU © Emaar 2011 38

  39. Slide 39: Appendix

    APPENDIX © Emaar 2011 39

  40. Slide 40: Land Bank (including associates)

    Land Bank (including associates) Country Current Land area in millions sqm UAE* 20.92 Kingdom of Saudi Arabia 172.76 Morocco 16.23 Egypt 14.73 Pakistan 6.51 Syria 0.30 Turkey 1.86 Jordan 1.75 USA & Canada 3.00 Lebanon 0.65 • Includes 6.5 million sq. mtr. of land in Bawadi development on which the Em

  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 & Director Legal Amit Jain Issam Galadari Frederick Durie Other Group CFO CEO Emaar CEO Bus

  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 2011 •Middle East Spa Awards 2011 - Best Hotel Spa, The Spa at The Palace – The Old Town, Downtown Dubai •Middle East Spa Awards 2011 • First runner-up Best Signature Body Treatment, The Address Dubai Mall, Downtown Dubai •Middle East Spa Awards 2011 • First runner-up Best Signature Facial Tr

  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 2011 46

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