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

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

47 slides from Emaar Properties (p.j.s.c)'s investor presentation, Jun 9, 2011

  1. Slide 1: Emaar Properties PJSC Corporate Presentation

    Emaar Properties PJSC Corporate Presentation June 9th, 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 19.7bn (US$5.36 bn) Revenues: FY 2009 AED 8.4 bn (US$2.29 bn) FY 2010 AED 12.15 bn (US$ 3.31 bn) Net Operating Profit: FY 2009 AED 2.3 bn (US$ 0.63 bn) FY 2010 AED 3.03 bn (US$

  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 2010 Performance Highlights

    EMAAR’s Group 2010 Performance Highlights Performance highlights/Key Achievements during 2010 included: • Burj Khalifa: Official opening of Burj Khalifa (Tallest Tower in the world) in January 2010. • Armani Hotel: Official opening of the first Armani Hotel in Burj Khalifa • Dubai and International

  7. Slide 7: EMAAR's Group 2010 Performance Highlights Con't

    EMAAR’s Group 2010 Performance Highlights Con’t Profitability | Stable performance in tough market conditions • Revenues for 2010 were AED 12.150 bn (versus 2009 AED 8.413 bn) • Net Operating Profit 2010 were AED 3.034 bn (versus 2009 AED 2.324 bn) Balance Sheet as at 31 Dec 2010 | remains robust •

  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 35,000 32,986 29,454 30,000 26,378 25,000 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 13,185 5,000 10,227 8,048 - 2005 2006 2007 2008 2009 2010 Villas Apartments © Emaar 2011 9

  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 8,000 90% AED millions 5,675 6,000 69% 67% 4,000 2,776 2,101 2,000 1,076 973 637 23% 25% - 10% 8% 8% - 2008 2009 2010 Dubai Operations Leasing & Hospitality International © 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 55 audited financial statements AED billions 50 54 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 2,016 320 947 749 Downtown Dubai Commercial units (Sq Ft) 1,353,034 974,501 378,533 - 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 75% in its International business Units Unit Sale % sales Country Entity Released achieved achieved Egypt Emaar Misr for Development S.A.E. 2,495 1,753 70% KSA Emaar Middle East 434 299 69% Pakistan Emaar DHA Islamaba

  24. Slide 24: International Business Highlights

    International Business Highlights Units Units Under To be Developed Deliveries Deliveries Deliveries Deliveries Deliveries Country Entity Completed Development 2011-2013 2009 2010 2011 2012 2013 Subsidiaries Egypt Emaar Misr 100 1,829 3,684 - 100 380 1,325 1,066 KSA Emaar Middle East 32 523 866 - 31

  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 90% across all assets (Dec 2010) and significant interest on remaining units resulted from success of The Dubai Mall. In term

  28. Slide 28: Malls – Key Strengths (Cont')

    Malls – Key Strengths (Cont’) • Impressive and Growing Footfall - Overall footfall trend positive across Mall Division in 2010, with The Dubai Mall now the busiest mall as measured by footfall in Dubai Since opening in Nov-08. The Mall recorded 47 million visitors in 2010 and highest-ever quarterly

  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 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 - 2009 2009 2009 2009 2010 2010 2010 2010 2011 © Emaar 2011 29

  30. Slide 30: At The Top Footfall Trend

    At The Top Footfall Trend At The Top - Footfall 450 400 No. of Visitors in thousands 350 384 300 348 250 200 246 219 150 100 50 97 0 Q1 - 2010 Q2 - 2010 Q3 - 2010 Q4 - 2010 Q1-2011 © 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 The Address Downtown Dubai TAH&R(2) 5 Star 196 2008 Al Manzil Hotel Southern Sun 4 Star 197 2007 Qamardeen Hotel Southern Sun 4 Star 186 2007 The

  32. Slide 32: Emaar Hospitality Group

    Emaar Hospitality Group YTD March 2011 The Address The Address The Address The Palace Al Manzil Qamardeen Downtown Dubai Mall Dubai Marina No of rooms - YTD 17,640 21.780 21,960 18,000 17,730 16,740 Occ% 96% 90% 90% 80% 89% 83% ADR 1,535 1,216 1,297 933 718 618 Revpar 1,472 1,100 1,173 744 639 512 R

  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')

    Emaar Hospitality – Key Strengths (Cont’) 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 69% in 2010 between both properties achieving an EBITDA

  35. Slide 35: Financial Highlights

    FINANCIAL HIGHLIGHTS © Emaar 2011 35

  36. Slide 36: Financial Performance – AED millions

    Financial Performance – AED millions Q1-11 Q1-10 % Q1-11 Q4-10 % Revenue 1,983 2,886 (31%) 1,983 3,830 (48%) Gross Profit 1,024 1,200 (15%) 1,024 1,192 (14%) SGA (458) (450) 2% (458) (523) (12%) Other income 40 63 (37%) 40 148 (73%) Associates (127) (57) 123% (127) (80) 59% Income Tax (7) 3 (333%) (

  37. Slide 37: Financial Performance – AED millions

    Financial Performance – AED millions Q4-10 Q3-10 % Q4-10 Q4-09 % 2010 2009 % Revenue 3,830 2,782 38% 3,830 2,984 28% 12,150 8,413 44% Gross Profit 1,192 1,030 16% 1,192 1,424 (16%) 4,546 4,100 11% SGA (523) (446) 17% (523) (544) (4%) (1,918) (1,911) - Other income 148 118 25% 148 117 26% 635 455 40%

  38. Slide 38: Balance Sheet and Ratio Analysis

    Balance Sheet and Ratio Analysis AED million 2007 2008 2009 2010 Current Assets 12,030 9,351 5,915 8,014 Fixed Assets and Investment properties 13,069 18,662 15,368 16,649 Other Assets 35,874 38,667 42,862 37,841 Total Assets 60,973 66,680 64,145 62,504 Interest Bearing Liabilities 7,704 9,174 8,625

  39. Slide 39: Thank You

    THANK YOU © Emaar 2011 39

  40. Slide 40: Appendix

    APPENDIX © Emaar 2011 40

  41. Slide 41: Land Bank (including associates)

    Land Bank (including associates) Land area in millions sqm Country Current 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

  42. Slide 42: 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 Morocco ONA Group Morocco's largest conglomerate Haji Rafiq Pr

  43. Slide 43: 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 Sergio Casari Other Group CFO CEO Emaar CEO Busin

  44. Slide 44: Group Structure

    Group Structure EMAAR PROPERTIES PJSC EMAAR DUBAI HOTELS & EMAAR EMAAR MALLS HOSPITALITY Property RESORTS 100% Development INTERNATIONAL INVESTMENTS 100% Projects - 100% 100% Emrill Services MGF-India KSA - EEC Turner Int’l ME Dubai Mall Giorgio Armani Nuran LLC 33.33% 45% 30.50% 50% 100% Hotels 100

  45. Slide 45: 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

  46. Slide 46: 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

  47. Slide 47: Thank You

    Thank You www.emaar.com © Emaar 2011 47

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