Emaar Development Pjsc · DFM:EMAARDEV
Emaar Development Pjsc — FY2023 Earnings Presentation
32 slides from Emaar Development Pjsc's earnings presentation, Mar 21, 2024
Slide 1: Emaar Development PJSC Investor Presentation
Emaar Development PJSC Investor Presentation March 2024 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 2023 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 2023 • Burj Khalifa – Tallest Building in the World • Revenue ~AED 11.9 Bn • Dubai Marina – Largest Man-Made Marina1 (3.5 sq.km.) development of its kind • EBITDA ~AED 8 Bn • Dubai Fountain – World’
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 Revenue In AED Mn Gross Profit In AED Mn 15,433 15,602 8,408 12,746 6,700 11,541 11,921 5,735 5,184 8,863 9,758 5,061 6,899 3,761 3,478 5,253 2,395 2,861 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015 2016 2017 2018 2019 2020 2021 2022 2023 EBITDA In AED Mn Net Pro
Slide 8: Consistently Ahead of the Competition
Consistently Ahead of the Competition Emaar Development Maintained Robust Sales Trend since 2015 Robust Sales In AED Bn 37.4 30.7 27.4 ✓ Displayed strong sales traction. 18.0 14.4 14.2 14.8 10.2 6.3 ✓ Significant long-term value creation through Integrated Master Developments centered 2015 2016 2017
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 rate of incremental investment in through pre-sales ~0.5% of sales value new land
Slide 12: Diversified Customer Base to Maintain Healthy Sales Traction
Diversified Customer Base to Maintain Healthy Sales Traction 2023 Customer Mix – 2023 Customer Mix – UAE Residents vs. International Residents Based on nationality India Russia Others International China Residents 40% UAE Residents UK 60% Germany Pakistan Iran Egypt Saudi Arabia UAE Flight to qualit
Slide 13: Sufficient Land Bank to Deliver Long-term Growth
Sufficient Land Bank to Deliver Long-term Growth Year Masterplan Land Bank Availability 2012 Arabian Ranches II 2013 Dubai Hills Estate (million sq ft) 2014 Dubai Creek Harbour 2015 Emaar South GLA (Mn SQFT) 2016 Downtown Views, Address Marjan Island1 2017 Zabeel Square & Emaar Beachfront Arabian Ra
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: 2023 Results Update
2023 Results Update 15 | EMAAR DEVELOPMENT
Slide 17: 2023 Key Highlights
2023 Key Highlights Property Sales Revenue EBITDA ~AED 37.4 Bn ~AED 11.9 Bn ~AED 8 Bn Net Profit Default Rate ~0.5% of Sales c. 12,000 Units Delivered ~AED 6.6 Bn Value c. 25,500 units under c. AED 57.1 Bn c. AED 22.3 Bn construction to be delivered in Revenue Backlog1 Cash Balance2 next 4 years To
Slide 18: Key Highlights
Key Highlights AED Million 2023 2022 % Change Property Sales 37,367 30,713 22% Revenue 11,921 11,541 3% Gross Profit 8,408 5,184 62% Margin (%) 70.5% 44.9% - EBITDA (before minority interest) 7,987 4,224 89% Margin (%) 67.0% 36.6% - Net Profit (attributable to owners) 6,629 3,808 74% Margin (%) 55.6
Slide 19: Balance Sheet & Cash Flow Overview
Balance Sheet & Cash Flow Overview Balance Sheet¹ Overview Cash Flow Overview AED Mn Total: AED 48,868 Mn Loans & Investments in 3% Non-Controlling 8% Associates and JVs Interests Trade & Other Receivables 34% Shareholder's Equity 47% Development Properties Interest Bearing 26% Loans & Borrowings 0%
Slide 20: Project Development Status & Overview
Project Development Status & Overview 100% Owned Developments 100% Consolidated JV JV/JDAs 3 Rashid Downtown Arabian Dubai Emirates Emaar Address Dubai Dubai Emaar Other Land Projects Under Development The Valley Yachts & Total 5 Dubai Ranches 4 Marina Living Beachfront Marjan Island Hills Creek Sou
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 Downtown Dubai is a Golden landscape of Offering riviera-style living Green-focused Emaar Beachfront is a An idyllic new township dynamic city hub, which shimmering
Slide 23: UAE Development – Projects Overview
UAE Development – Projects Overview 100% Consolidated JV JVs/JDAs with 50% share Dubai Hills Estate Rashid Yachts & Marina Dubai Creek Harbour Emaar South Zabeel Square Joint Venture between Emaar Joint Venture between Emaar Dubai Creek Harbour, a Joint Venture between Emaar Joint venture between Em
Slide 24: UAE Development – Projects Under Development
UAE Development – Projects Under Development (100% Owned) UAE Development – Projects Under Development (JVs) Project Value Launch % Completion Project Value Launch % Completion Project (100% Owned) Units % Unit Sold Project (Joint Ventures) Units % Unit Sold (AED Mn)(1) Period Dec-23 (AED Mn)(1) Per
Slide 25: UAE Development – Completed Projects (100% Owned)
UAE Development – Completed Projects1 (100% Owned) % Remaining Project Value Area % Collected of sold Project (100% Owned) Units % Unit Sold % Value Sold Collections of (AED Mn)(2) (SQF) value Sold Value Downtown Dubai 11,002 37,774 14,168,483 100% 99% 89% 11% Blvd Heights 550 1,806 773,089 99% 98%
Slide 26: UAE Development – Completed Projects (JVs)
UAE Development – Completed Projects1 (JVs) % Remaining Project Value Project Value % Collected of sold Project (Joint Ventures) Units % Unit Sold % Value Sold Collections of (AED Mn)(2) (AED Mn)(2) value Sold Value Dubai Hills Estates 9,743 27,955 19,243,775 100% 99% 94% 6% Park Heights I 270 319 2
Slide 27: Locations of Development Projects
Locations of Development Projects Address Marjan Island OASIS - ED Grand Club Resort The Heights Country Club Notes: ‘Rashid Yachts & Marina’, formerly ‘Mina Rashid’, ‘Address Marjan Island’, formerly ‘Al Marjan RAK’ | Oasis – ED, formerly Lusaily Extension | Masterplan visuals are approximated for
Slide 28: Expected Delivery Schedule
Expected Delivery Schedule Under Development Delivery Schedule Delivered as at Under 31-Dec-2023 Development 2024 2025 2026 2027 2028 A - Emaar Development (Consolidated) 1 58,905 20,246 3,635 2,532 4,965 6,693 2,421 1, 2 Downtown 20,091 2,731 1,656 - 1,075 - - Emaar Beachfront 1,936 3,707 633 550 9
Slide 29: 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 Yachts & Marina* • 100% consolidation • 100% consolidation • Neut
Slide 30: Divisions Overview
Divisions Overview UAE Entertainment & International Operations Malls* Hospitality Development Leasing • Leading master plan • Active in targeted high • Owner and operator of • Hotel owner and operator • Provider of premium developer in Dubai growth countries one of the most visited (38 hotels with
Slide 31: Group Structure
Group Structure* EMAAR PROPERTIES PJSC (2) DOMESTIC REAL ESTATE INTERNATIONAL MALLS HOSPITALITY GROUP OPERATIONS LEISURE & OTHERS ENTERTAINMENT DUBAI EMAAR EMAAR EMAAR EMAAR CREEK DEVELOPMENT EME, KSA EEC, KSA EGYPT (3) EMAAR HOSPITALITY HOTELS & DISTRICT EMAAR ASSET AT THE TOP EMAAR HAMPTONS (4&5)
Slide 32: Thank You
Thank You EMAAR DEVELOPMENT Name – Abhay Singhvi Email id - [email protected] 31 | EMAAR DEVELOPMENT
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