Al Dar Properties · ADX:ALDAR
Al Dar Properties — Q1 2022 Earnings Presentation
32 slides from Al Dar Properties's earnings presentation, Apr 28, 2022
Slide 1: Q1 2022 Results Presentation
Q1 2022 RESULTS PRESENTATION QUARTER ENDED 31 MARCH 2022 28 APRIL 2022
Slide 2: Agenda
AGENDA 1 Aldar Value Proposition 2 Q1 2022 Results Summary 3 Aldar Development 4 Aldar Investment 5 Appendix INVESTOR PRESENTATION Q1 2022 2
Slide 3: Aldar Value Proposition
ALDAR VALUE PROPOSITION INVESTOR PRESENTATION Q1 2022 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 42.9bn / US$ 11.7bn1 Credit rating: Baa2 (Parent) / Baa1 (AIP)
Slide 6: Track Record of Growth
TRACK RECORD OF GROWTH DEMONSTRATED TRACK-RECORD OF GROWTH THROUGH ACQUISITIONS 2.0 DEC 2021 AED 1.5bn Share Price Performance (Rebase Dec 14 = 1) 1.8 2013 - 2014 SEP 2018 JAN 2021 acquisition of Egypt Post-merger with AED 20bn Aldar Launch of developer SODIC 7 1.6 Sorouh to establish Investment Ald
Slide 7: Recent Capital Deployment
RECENT CAPITAL DEPLOYMENT New Geography SIGNIFICANT ACTIVITY ACROSS EXISTING AND NEW MARKETS: +AED 7BN DEPLOYED OR New Sector COMMITTED OVER LAST 18 MONTHS AED 346m AED 1.0bn1 +AED 1bn AED 410m Develop to hold 59.9% stake in SODIC Investment to diversify acquisition of Hamra Mall investment into Sta
Slide 8: 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 Q1 2022 Debt and Facilities Breakdown Debt 7.9 Cash 9.1 3.7 Equity 29.3 4.9 Total Assets 49.9 4.3 Sukuk Facilities drawn Facilit
Slide 9: 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 10: Q1 2022 Results Summary
Q1 2022 RESULTS SUMMARY INVESTOR PRESENTATION Q1 2022 10
Slide 11: Q1 2022 – Key Highlights
Q1 2022 – KEY HIGHLIGHTS • Group Revenue +32% YoY and Net Profit +27% YoY driven by growth in UAE business and inclusion of SODIC Solid Group • Strong balance sheet with AED 5.6bn of free & subsidiary cash and AED 4.9bn of undrawn committed facilities performance • Landmark US$ 1.4bn strategic inves
Slide 12: Q1 2022 – Group Financial Highlights
Q1 2022 – GROUP FINANCIAL HIGHLIGHTS AEDm Q1 2022 Q1 2021 Var (%) Revenue 2,683 2,041 32% Gross Profit 1,118 776 44% Margin % 42% 38% 10% EBITDA 806 658 23% Margin % 30% 32% (7)% Adj. EBITDA1 821 568 45% Margin % 31% 28% 10% Net profit 688 544 27% Margin % 26% 27% (4)% Note: 1. Adjusted for fair val
Slide 13: Balance Sheet
BALANCE SHEET ROBUST BALANCE SHEET POSITION SUPPORTED BY PRUDENT CAPITAL MANAGEMENT AND GOVERNANCE BALANCE SHEET LEVERAGE1 Aldar Aldar Investment Development AED millions 31 Mar 2022 31 Dec 2021 Outstanding ▪ Sukuk: 3.7bn ▪ Bank: 0.7bn ASSETS Debt (AED bn) ▪ Bank: 3.6bn (o/w SODIC: 516m) (as at 31-M
Slide 14: Apollo Transaction
APOLLO TRANSACTION ALDAR RAISED US$1.4B IN EQUITY & GROWTH CAPITAL FROM APOLLO, WHICH HAS ENABLED THE MONETIZATION OF THE LONG-TERM LAND BANK AND ADDITIONAL SOURCES OF GROWTH CAPITAL US$1.4bn of Long Term Investment 1 ▪ US$ 500m investment into a joint venture between Land Joint ■ Land Joint Venture
Slide 15: Q1 2022 – Key Sustainability Updates
Q1 2022 – KEY SUSTAINABILITY UPDATES ▪ Participated at the Future Energy Summit at the Abu Dhabi Sustainability Week, in which we launched two strategic projects; ─ The Sustainable City Abu Dhabi, and ─ The Clean Energy Certificate which will help us reduce our scope 2 emissions for the coming 5 yea
Slide 16: Aldar Development
ALDAR DEVELOPMENT INVESTOR PRESENTATION Q1 2022 16
Slide 17: Aldar Development Q1 2022 Financial Performance
ALDAR DEVELOPMENT Q1 2022 FINANCIAL PERFORMANCE AED mn Q1 2022 Q1 2021 Var (%) Group Sales 2,191 1,090 101% Property Development & Sales UAE 1,512 1,090 39% • Group sales (incl. SODIC) +101% y-o-y to AED 2.2bn (highest-ever for Q1) Egypt 678 - - • Revenue +54% y-o-y, driven by strong inventory sales
Slide 18: Land Bank Overview
LAND BANK OVERVIEW ALDAR HAS ACCESS TO A LARGE AND HIGHLY VALUE ACCRETIVE LAND BANK OF C. 69M SQM1 WHICH IS MONETIZED THROUGH DESTINATION MASTER PLANNING / DEVELOPMENT AND ONGOING INVESTMENT KEY CURRENT DESTINATIONS INCLUDE YAS AND SAADIYAT AND FUTURE DESTINATIONS INCLUDE MINA ZAYED AND AL GHADEER D
Slide 19: Development Projects Pipeline
DEVELOPMENT PROJECTS PIPELINE Total as at 31 Mar 22 Highlights Project Location Launch date Sold units Net Sales value (AEDm) Units launched % sold % completion Project Status Ansam Yas Island 2014 547 959 547 100.0% 100% Handed over Hadeel Al Raha Beach 2014 232 478 233 99.6% 100% Handed over Naree
Slide 20: Aldar Investment
ALDAR INVESTMENT INVESTOR PRESENTATION Q1 2022 20
Slide 21: Aldar Investment Q1 2022 Financial Performance
ALDAR INVESTMENT Q1 2022 FINANCIAL PERFORMANCE AED mn Q1 2022 Q1 2021 Var (%) Recurring revenue1 859 788 9% Investment Properties Investment Properties2 442 420 5% • Retail: Q1 EBITDA +34% YoY to AED 117m Hospitality & Leisure 129 93 39% • Occupancy of 92% (vs. 83% Q1 20), driven by Yas Mall reposit
Slide 22: Investment Properties Overview
INVESTMENT PROPERTIES OVERVIEW1 COMMERCIAL RESIDENTIAL RETAIL Q1 2021 Commercial Retail 20% 46% AuM: AED 17.5bn • Aldar has developed and acquired a • Aldar Investment owns a significant • Aldar has developed a substantial predominantly Grade A commercial residential portfolio of around 7,248 retail
Slide 23: Hospitality & Leisure
HOSPITALITY & LEISURE BROAD RESILIENT PORTFOLIO MAKE UP HOTELS • The hotel portfolio consists of assets from 3 to 5 AED m Q1 2022 star, in addition to hotel apartments Revenue 129 • Key assets: - W Yas Island Adj. EBITDA 22 - Radisson Blu - Crowne Plaza - Rotana Adj. EBITDA Margin 17% - Anantara Eas
Slide 24: Aldar Education
ALDAR EDUCATION ▪ Leading operator and provider of private 20 26k+ SCHOOLS education in Abu Dhabi with the largest network of schools, delivering English and STUDENTS ACROSS OUR American curriculums adapted for the UAE NETWORK OF SCHOOLS ▪ Operates 4 ADNOC schools, 7 charter schools in addition to 8
Slide 25: Principal Investments
PRINCIPAL INVESTMENTS1 ▪ Aldar’s real estate services arm is comprised of Khidmah, a facilities management business and Provis a property management business ▪ Provis undertakes sales and leasing, property management, consultancy services and valuation advisory amongst others – 93 manages more than
Slide 26: Appendix
APPENDIX INVESTOR PRESENTATION Q1 2022 26
Slide 27: Segmental Breakdown – Q1 2022 vs. Q1 2021 & Q4 2021
SEGMENTAL BREAKDOWN – Q1 2022 vs. Q1 2021 & Q4 20211 REVENUE (AEDm)2 1,235 963 800 442 420 435 386 262 279 280 129 184 139 129 138 149 146 171 93 n.a n.a Investment Properties Hospitality & Leisure Education Principal Investments1 Property Development & Project Management Egypt Sales Services Q1 202
Slide 28: SODIC – Key Accounting Policies in Financial Statements
SODIC – KEY ACCOUNTING POLICIES IN FINANCIAL STATEMENTS NO MAJOR DIFFERENCES IN IFRS VS. EGYPTIAN GAAP ▪ SODIC recognizes revenue from sale of development properties at a point-in-time on handover resulting in relatively larger DWIP and Revenue-recognition contract liabilities (cash collected in adv
Slide 29: Hybrid Perpetual Notes
HYBRID PERPETUAL NOTES THE US$500M SUBORDINATED PERPETUAL NOTES ARE PART OF APOLLO’S US$1.4BN INVESTMENT OF STRATEGIC CAPITAL INTO ALDAR’S TRANSFORMATIONAL GROWTH INITIATIVES, WHICH WAS ANNOUNCED IN FEBRUARY 2022 ■ Transaction closed on 23rd March 2022 ■ Largest corporate hybrid private placement in
Slide 30: 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 31: 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 Q1 2022 31
Slide 32: Thank You
THANK YOU INVESTOR PRESENTATION FY2021 32