Al Dar Properties · ADX:ALDAR
Al Dar Properties — FY2021 Earnings Presentation
30 slides from Al Dar Properties's earnings presentation, Mar 8, 2022
Slide 1: Investor Presentation FY2021
INVESTOR PRESENTATION FY2021 8 MARCH 2022
Slide 2: Agenda
AGENDA 1 Aldar Value Proposition 2 FY 2021 Results Summary 3 Aldar Development 4 Aldar Investment 5 Appendix INVESTOR PRESENTATION FY2021 2
Slide 3: Aldar Value Proposition
ALDAR VALUE PROPOSITION INVESTOR PRESENTATION FY2021 3
Slide 4: Leading Regional Real Estate Play Poised for Growth
LEADING REGIONAL REAL ESTATE PLAY POISED FOR GROWTH SAFE HARBOUR BENEFITING FROM MARKET TAILWINDS INVESTMENT HIGHLIGHTS ✓ Abu Dhabi master developer of iconic destinations with proven delivery and sales track-record and leading share in off-plan residential sales: +80% mkt share1 ✓ Well-positioned s
Slide 5: Key Value Drivers
KEY VALUE DRIVERS LEADING ABU DHABI PROPERTY COMPANY WITH DIVERSIFIED BUSINESS MODEL COMPRISED OF TWO CORE BUSINESSES: MARKET LEADING FRANCHISES ACROSS ASSET MANAGEMENT (ALDAR INVESTMENT) AND HOMEBUILDING (ALDAR DEVELOPMENT) Mkt Cap: AED 35bn / US$ 9.5bn1 Credit rating: Baa2 (Parent) / Baa1 (AIP)2 A
Slide 6: Track Record of Growth
TRACK RECORD OF GROWTH DEMONSTRATED TRACK-RECORD OF GROWTH THROUGH ACQUISITIONS 2 Share Price Performance (Rebase Dec 14 = 1) 1.8 2013 - 2014 SEP 2018 JAN 2021 DEC 2021 Post-merger with AED 20bn Aldar Launch of AED 1.5bn acquisition of 1.6 Sorouh to establish Investment Aldar’s new Egypt developer S
Slide 7: Robust Group Balance Sheet Supporting Growth
ROBUST GROUP BALANCE SHEET SUPPORTING GROWTH HIGHEST NON-GRE / CORPORATE CREDIT RATING OF BAA1 (ALDAR INVESTMENT PROPERTIES) WITH ONE OF THE LOWEST COSTS OF CAPITAL AED bn FY 2021 Debt and Facilities Breakdown Debt 8.4 Cash 8.9 3.7 4.7 Equity 27.7 Total Assets 49.5 4.7 Sukuk Facilities drawn Facilit
Slide 8: Aldar Growth Agenda
ALDAR GROWTH AGENDA WELL-FUNDED AND LIQUID BALANCE SHEET WITH FURTHER GROWTH CAPITAL FROM APOLLO TO FUND WAVE OF DEPLOYMENT DEVELOPMENT INVESTMENT • Structural increase in development sales • Capital deployment for asset and • Growth of Projects fee stream geographic diversification • Geographic div
Slide 9: FY 2021 Results Summary
FY 2021 RESULTS SUMMARY INVESTOR PRESENTATION FY2021 9
Slide 10: FY2021 – Key Highlights
FY2021 – KEY HIGHLIGHTS • Group net profit +20% y-o-y Excellent Group performance in FY • Strong balance sheet with AED 5.4bn of free & subsidiary cash and AED 4.7bn of undrawn committed facilities 2021 across all • Dividend recommendation of 15 fils (+3.4% VS 2020) in-line with existing dividend po
Slide 11: Group Financial Highlights
GROUP FINANCIAL HIGHLIGHTS AED mn Q4 2021 Q4 2020 Var (%) FY 2021 FY 2020 Var (%) Revenue 2,256 2,534 (11)% 8,576 8,392 +2% Gross Profit 1,166 873 +34% 3,600 2,983 +21% Margin % 52% 34% +52% 42% 36% +17% EBITDA 908 856 +6% 2,801 2,443 +15% Margin % 40% 34% 18% 33% 29% +14% Net profit 795 729 +9% 2,3
Slide 12: Commitment to Shareholders
COMMITMENT TO SHAREHOLDERS BOARD RECOMMENDS FY 2021 DIVIDEND OF 15 FILS PER SHARE IN-LINE WITH EXISTING DIVIDEND POLICY AND ALLOWING FOR DEPLOYMENT TOWARDS GROWTH SHAREHOLDER RETURNS DIVIDEND POLICY Investment Development • 1-yr and 3-yr Total Shareholder Returns1 of 20% and 187%, respectively Pay-o
Slide 13: Balance Sheet
BALANCE SHEET ROBUST BALANCE SHEET POSITION SUPPORTED BY PRUDENT CAPITAL MANAGEMENT AND GOVERNANCE BALANCE SHEET LEVERAGE Aldar Aldar Investment Development AED millions 31 Dec 2021 31 Dec 2020 Outstanding ▪ Sukuk: 3.7bn ▪ Bank: 1.2bn ASSETS Debt (AED bn) ▪ Bank: 3.5bn (o/w SODIC: 596m) (as at 31-De
Slide 14: Aldar Development
ALDAR DEVELOPMENT INVESTOR PRESENTATION FY2021 14
Slide 15: Aldar Development FY 2021 Financial Performance
ALDAR DEVELOPMENT FY 2021 FINANCIAL PERFORMANCE Key Highlights AED mn FY 2021 FY 2020 Var (%) Property Development & Sales Development sales 7,247 3,617 +100% • Highest-ever sales of AED 7.2bn supported by broadening customer profile, notably overseas & resident expat customer Development revenue 5,
Slide 16: Aldar Investment
ALDAR INVESTMENT INVESTOR PRESENTATION FY2021 16
Slide 17: Aldar Investment FY 2021 Financial Performance
ALDAR INVESTMENT FY 2021 FINANCIAL PERFORMANCE AED mn FY 2021 FY 2020 Var (%) Key Highlights Recurring revenue2 3,284 3,089 +6% Investment Properties Investment Properties1 1,690 1,643 +3% • Retail: FY 21 NOI +4% YoY, mainly due to strong leasing at Yas Mall and Hospitality & Leisure 433 418 +4% Mam
Slide 18: Investment Properties Overview
INVESTMENT PROPERTIES OVERVIEW1 COMMERCIAL RESIDENTIAL RETAIL FY 2021 Commercial Retail 20% 46% AuM: AED 16.5bn • Aldar has developed and acquired a • Aldar Investment owns a significant • Aldar has developed a substantial predominantly Grade A commercial residential portfolio of around 7,300 retail
Slide 19: Hospitality & Leisure
HOSPITALITY & LEISURE BROAD RESILIENT PORTFOLIO MAKE UP HOTELS • The hotel portfolio consists of assets from 3 to 5 AED m FY 2021 star, in addition to hotel apartments Revenue 443 • Key assets: - W Yas Island EBITDA 77 - Radisson Blu - Crowne Plaza - Rotana EBITDA Margin 18% - Anantara Eastern Mangr
Slide 20: Aldar Education
ALDAR EDUCATION ▪ Leading operator and provider of private education in Abu Dhabi with the largest network of schools, delivering English and American curriculums adapted for the UAE ▪ Operates 4 ADNOC schools, 7 charter schools in addition to 8 Aldar Academies schools (incl. Cranleigh) and a nurser
Slide 21: Principal Investments
PRINCIPAL INVESTMENTS1 Provis intends to reach AED 1 billion in revenue through ensuring a market leading position in each service segment ▪ Aldar’s real estate services arm is comprised of Khidmah, a facilities management business and EBITDA Provis a property management business margin 16% 15% 6% 6
Slide 22: Appendix
APPENDIX INVESTOR PRESENTATION FY2021 22
Slide 23: Segmental Breakdown – Q4 2021 vs. Q4 2020 & Q3 2021
SEGMENTAL BREAKDOWN – Q4 2021 vs. Q4 2020 & Q3 20211 REVENUE (AEDm) 1,071 963 905 528 435 423 421 352 279 184 160 136 134 133 171 146 156 82 Investment Properties Hospitality & Leisure Education Principal Investments 1 Property Development & Project Management Sales Services Q4 2021 Q4 2020 Q3 2021
Slide 24: Segmental Breakdown – FY 2021 vs. FY 2020
SEGMENTAL BREAKDOWN – FY 2021 vs. FY 20201 REVENUE (AEDm) 3,645 3,700 1,690 1,643 1,388 1,262 433 418 536 484 625 539 Investment Properties Hospitality & Leisure Education Principal Investments1 Property Development & Project Management Sales Services FY 2021 FY 2020 GROSS PROFIT (AEDm) 1,295 1,315
Slide 25: Land Bank Value Development – Creation of City Scale Destinations
LAND BANK VALUE DEVELOPMENT – CREATION OF CITY SCALE DESTINATIONS ALDAR HAS A LARGE AND HIGHLY VALUE ACCRETIVE LAND BANK WHICH IS MONETIZED THROUGH DESTINATION MASTER PLANNING / DEVELOPMENT AND ONGOING INVESTMENT KEY CURRENT DESTINATIONS INCLUDE YAS AND SAADIYAT AND FUTURE DESTINATIONS INCLUDE MINA
Slide 26: Development Project Pipeline
DEVELOPMENT PROJECT PIPELINE INVESTOR PRESENTATION FY2021 26
Slide 27: Key Sustainability Updates
KEY SUSTAINABILITY UPDATES ▪ Aldar was assessed by Sustainalytics as being at low risk of experiencing material financial impacts from ESG factors, ranking 9/104 companies in the diversified real estate industry. Aldar also ranked in the top-quartile of real estate companies globally, achieving a sc
Slide 28: UAE Policy Reforms and Energy Strategy
UAE POLICY REFORMS AND ENERGY STRATEGY FEDERAL ANNOUNCEMENTS Energy industry plans ▪ Rapid rollout of a major vaccination campaign underpin economic recovery. As of February 2022, the UAE has administered ▪ ADNOC will continue to deliver on its 2030 strategy, including its value maximization 23.9 mi
Slide 29: Contact Us
CONTACT US For any further enquiries please contact: Samar Khan Head of Investor Relations Tel: +971 (0)2 810 5624 Email: [email protected] Basma Almheiri Investor Relations Tel: +971 (0)2 810 5992 Email: [email protected] ▪ INVESTOR PRESENTATION FY2021 29
Slide 30: Thank You
THANK YOU INVESTOR PRESENTATION FY2021 30