Emaar Properties (p.j.s.c) · DFM:EMAAR
Emaar Properties (p.j.s.c) — Emaar Properties — H1 2017 Earnings Presentation
54 slides from Emaar Properties (p.j.s.c)'s earnings presentation, October 2017
Slide 1: Emaar Properties H1 2017 Results
Emaar Properties H1 2017 Results updated October 2017
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 Q2 2017 Results Presentation 22 October 2017 Page 2
Slide 4: Emaar Properties at a Glance
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Properties at a Glance #1 +2Bn c. 88,000 listed developer SQFT of land units sold since by market cap bank in key inception(3) in MENA(1) countries c. 56,000 in UAE +43,000 c. 50Bn c. 40,000 residential units Units Und
Slide 5: Key Financial Highlights for the Group
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Key Financial Highlights for the Group AED MM Q2 2017 Q2 2016 % Change H1 2017 H1 2016 % Change Group Property Sales 5,546 5,289 5% 11,966 10,440 15% Revenue 3,794 3,728 2% 7,866 7,257 8% Gross Profit 2,163 1,902 14% 4,202 3
Slide 6: Key Achievements – H1 2017
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Key Achievements – H1 2017 22% increase in property sales in Dubai to AED 10.8 Bn 15% growth in net 8% growth in (5 year CAGR 36%) Profit to AED 2.8 Bn revenue to AED 7.9 Bn 33% YoY increase YTD Sep 2017 at AED 15.4 Bn 10% i
Slide 7: Results by Segment
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Results by Segment Revenues Breakdown of Results AED million Revenues 8% (5%) 64% - 9% 6% 8% 7,866 7,257 10% 3,154 3,308 40% 1,697 1,032 1,579 1,581 787 721 649 615 20% Emaar * UAE International Emaar Malls Emaar Entertainme
Slide 8: Balance Sheet Overview at 30 June 2017
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Balance Sheet Overview at 30 June 2017 Emaar Group Balance Sheet Overview Change in Cash & Cash Equivalents(1) % AED million Total: AED 99,277 MM +2,677 Trade & Other Bank Balances & 11 8,961 9,850 Payables Cash 16 -1,384 -3
Slide 9: Credit Ratios as of 30 June 2017
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Credit Ratios as of 30 June 2017 EBITDA / Interest Net Debt / EBITDA 12.0x 2015 0.41x 11.5x 0.01x 2015 2016 H1 2017 10.8x -0.78x 2015 2016 H1 2017 Net Debt / Equity Debt / GAV 2015 18.0% 18.0% 3.5% 0.2% 2015 2016 H1 2017 17.
Slide 10: UAE Development Overview
Key Highlights Income Statement Balance Sheet Operational Overview Appendix UAE Development Overview YTD 9M-2017 Launches Successfully launched 18 new projects (8,383 units) in Dubai YTD 9M-17 with a total value of AED 16.3 Bn (Q3-17 – 5 projects, 2,270 Units, AED 5.4 Bn) Downtown Views II Vida Resi
Slide 11: UAE Development Sales & Collection Profile
Key Highlights Income Statement Balance Sheet Operational Overview Appendix UAE Development Sales & Collection Profile Innovative marketing strategy and best-in-class revenue management allowing for significant sales growth with swift collections and low default rates Sales evolution (2012-2017) (AE
Slide 12: UAE Development at a glance
Key Highlights Income Statement Balance Sheet Operational Overview Appendix UAE Development at a glance IPO Perimeter overview Overview of UAE Development (Emaar Development) Emaar spearheaded the development of freehold master Downtown Dubai planned lifestyle communities in Dubai Behind the mos
Slide 13: Emaar Development - Financial Performance
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Development - Financial Performance Revenue on a growth trajectory supported by significant backlog of AED41 Bn expected to be recognized in the next 4 years Note: 1. Revenue is recognised based on the incremental perc
Slide 14: Emaar Development - Balance Sheet Overview
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Development - Balance Sheet Overview (at 30 September 2017) Balance Sheet Overview Change in Cash & Cash Equivalents % AED million Total: AED 21,310 Mn Trade & Other Bank Balances & 17% Payables Cash 48% 38% Advances f
Slide 15: UAE Development Overview
Key Highlights Income Statement Balance Sheet Operational Overview Appendix UAE Development Overview 100% Land bank 100% Owned Developments Consolidated JVs/JDA with 50% Share (100% owned) JV Downtown Arabian Dubai Emirates Dubai Emaar Zabeel Ras Al Dubai Dubai Hills Lusaily(6) Total Dubai Ranches M
Slide 16: Rationale for the proposed IPO of Emaar Development
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Rationale for the proposed IPO of Emaar Development Emaar Properties has transformed from a pure-play UAE developer to a diversified company with significant leasing and operating businesses both in local and international
Slide 17: Emaar Development - Dividend Policy
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Development - Dividend Policy High Cash Flow Generating Business Supports Sustainable Dividends Dividend Policy Sustainable Dividends Target aggregate dividends distribution of no less than USD1.7 Bn to be paid with
Slide 18: Emaar Development: Gross Asset Value of AED35.6 Bn & Adjusted NAV
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Development: Gross Asset Value of AED35.6 Bn & Adjusted NAV of AED24.1 Bn JLL Valuation as of 30 September 2017 GAV % of Total AED35.6 Bn of GAV (incl. 100% of JVs/JDs) incl. 100% GAV ED’s % of Total of incl. 100% Sh
Slide 19: Emaar Development: Adjusted NAV of AED24.1 Bn
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Development: Adjusted NAV of AED24.1 Bn GAV to NAV Bridge as of 30 September 2017 (AED Bn) 35.6 JLL quoted value of 0.5 (4.0) JV/JD management fee 1.8 income not in GAV Joint (10.4) Ventures & Joint Net 20.3 23.5 0.6 2
Slide 20: The strategy going forward
Key Highlights Income Statement Balance Sheet Operational Overview Appendix The strategy going forward Emaar Properties Emaar Development Holding company with diversified portfolio Focus on being a pure UAE developer of comprising leasing and operating projects for build-to-sell businesses as we
Slide 21: International Development
Key Highlights Income Statement Balance Sheet Operational Overview Appendix International Development Overview International Sales(1) Units Released 64% 1.2 AED Bn Egy 92 8 11,017 Revenue growth properties sold pt in H1 2017 in H1 2017 Turk 1,008 76 24 ey Indi 84 16 21,675 a 9.5 AED Bn 1st Subsidiar
Slide 22: Emaar Malls
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Malls Q2 2017 Q2 2016 % Change H1 2017 H1 2016 % Change Key Highlights GLA Emaar Malls records 11% growth in 5.8 5.9 (2%) 5.8 5.9 (2%) footfall YoY to 65 MN visitors (MM SQFT) Occupancy Maintains robust revenue whi
Slide 23: The Dubai Mall Expansions
Key Highlights Income Statement Balance Sheet Operational Overview Appendix The Dubai Mall Expansions Q2 2017 Results Presentation 22 October 2017 Page 22
Slide 24: Emaar Hospitality Group
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Hospitality Group H1 2017 H1 2016 % Change Key Highlights Occupancy Rate Address Boulevard welcomed its first guest 82% 84% (2%) from February 2017 (%)* RevPar Rove Healthcare City and Rove Trade Center 1,005 999 1
Slide 25: Emaar Misr for Development
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Misr for Development(1) AED EGP H1 2017 H1 2016 Change % H1 2017 H1 2016 Change % Key Highlights Units Launched 646 643 0% 646 643 0% Delivered 555 units in H1 2017 Units Delivered 555 424 31% 555 424 31% H1 2017 s
Slide 26: Summary
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Summary Financial Total group sales at AED 12 Bn in H1 2017 and a total backlog of AED 50 Bn, Emaar Performance is on track to boost profitability in the coming years Emaar YoY sales grew by 22% in H1 2017 across all pro
Slide 27: Appendix
NW end Appendix
Slide 28: Appendix A – Overview of Divisions and Strategy
Appendix A – Overview of Divisions and Strategy
Slide 29: Overview of Divisions of Emaar Properties
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Overview of Divisions of Emaar Properties Property UAE Emaar Hospitality Entertainment & Development Emaar Malls PJSC Development Group Leasing International • Leading master plan • Active in 10 targeted • Listed on DFM sinc
Slide 30: Strategy
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Strategy List 20% of UAE’s BTS Real Estate business through share offering to unlock its true value Consolidate Emaar’s position as of the largest developer of iconic projects in Dubai. UAE Enter into joint ventures in
Slide 31: Appendix B – Overview of Emaar Development
Appendix B – Overview of Emaar Development
Slide 32: Projects overview
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Projects overview at 30 Sep 2017 Wholly-owned projects Downtown Dubai Arabian Ranches Dubai Marina Emirates Living All under-construction projects Expansion of the current Arabian Two waterfront Green-focused development (in
Slide 33: Projects overview (cont'd)
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Projects overview (cont’d) at 30 Sep 2017 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) - Land bank
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Projects overview (cont’d) at 30 Sep 2017 Land bank (100% owned) Al Marjan - Ras Al Khaimah Lusaily # Dubai Harbour * A project of c.1m sqft of land located at A contiguous land parcel of 46m sqft A Well positioned project b
Slide 35: Overview of projects under development
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Overview of projects under development at 30 Sep 2017 Amount Area Expected % Unit % Value % Collected of % Completion % Gross Margin Project (EP Dubai) Units Launched Period (AED) (1) (SQF) Completion Date Sold Sold sold uni
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 2017 Amount Area Expected % Unit % Value % Collected of % Completion % Gross Margin Project (Joint Ventures) Units Launched Period (AED) (1) (SQF) Completion Date Sol
Slide 37: Location of Development Projects
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Location of Development Projects Al Marjan, Ras Al Khaimah Dubai Harbour(1) Zaabeel Lusaily # Q2 2017 Results Presentation 22 October 2017 Page 36 (1) Dubai Harbour partial acquisition completed and full acquisition pending
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 1 6 Dubai Polo Club 3 7 Mirrador La Coleccion 1 8 Mirrador La Coleccion 2 27 26 9 Hattan 2 25 10 Alvorada 1 21 22 20
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) Q2 2017 Results Presentation 22 October 2017 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) Q2 2017 Results Presentation 22 October 2017 Page 40
Slide 42: Overview of Expected Delivery Schedule
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Overview of Expected Delivery Schedule Units Delivery/ Year (1) 15,627 14,559 12,300 7,344 7,985 7,207 5,588 4,136 8,283 4,371 6,574 5,093 3,756 1,217 380 2017 2018 2019 2020 2021 UAE International Q2 2017 Results Presentati
Slide 43: 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 2017) UAE Delivery Schedule Under Cumulative YTD # of Units Completed Q4-17 2018 2019 2020 2021 Development till 2016 9M-17 A - Emaar Properti
Slide 44: Overview of Land Bank in UAE
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Overview of Land Bank in UAE (as at 30 June 2017) 350 322 323 324 Robust 6X growth 300 Sqft (millions) 250 250 in land bank through 200 189 investments and 150 100 73 strategic partnerships 50 57 0 2011 2012 2013 2014 2015 2
Slide 45: 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 for BTS by Emaar Agreement Equity accounted projects from 100
Slide 46: Appendix C – Overview of International Development
Appendix C – Overview of International Development
Slide 47: Overview of International Expected Delivery Schedule
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Overview of International Expected Delivery Schedule as of June 2017 Under To be Cumulative Country Entity Completed 2017 2018 2019 2020 2021 Development Developed till 2016 Subsidiaries Emaar Misr 3,928 7,109 2,706 3,340 1,
Slide 48: Overview of International Land Bank
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Overview of International Land Bank International Land Bank Gross Land Area (Million Sqf) Saudi Arabia (Emaar Economic City) 1,345.46 Saudi Arabia (Emaar Middle East) 34.79 India (Emaar MGF) 321.03 Egypt 55.69 Pakistan 16.52
Slide 49: Appendix D – Overview of Emaar Hospitality Group
Appendix D – Overview of Emaar Hospitality Group
Slide 50: Emaar Hospitality Group Portfolio
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Hospitality Group Portfolio Residences in Hotel Management Company Classification Keys Operational Hotel Pool(6) Emaar Hospitality Group Hotel Portfolio Dubai Armani Hotel at Burj Khalifa Armani Hotel - Dubai 5 Star 16
Slide 51: Emaar Hospitality Group: Asset Performance Breakdown
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Emaar Hospitality Group: Asset Performance Breakdown * The Address Boulevard (1) The Palace Downtown The Address Dubai Mall H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 Available Room Nights 23,912 43,802 44,044 44,164 44
Slide 52: 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 Apartments(1) Completion The Address Sky View Downtown 2013 169 551 2017 The Address Fountain Views Dow
Slide 53: Appendix E – Group Structure
Appendix E – Group Structure
Slide 54: Group Structure
Key Highlights Income Statement Balance Sheet Operational Overview Appendix Group Structure EMAAR Properties PSJC Emaar Dubai Emaar Malls PJSC Hotels & Resorts Hospitality Property Development Emaar International Emaar Investments 84.6% 100% 100% Projects—100% Emrill Services (33.33%) Emaar MGF-Indi