AL MAZAYA FINANCIAL SEPTEMBER 2016 DISCLAIMER 01 Any statement - - PowerPoint PPT Presentation

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AL MAZAYA FINANCIAL SEPTEMBER 2016 DISCLAIMER 01 Any statement contained in this presentation that refers to activities estimated or anticipated future results or future activities are forward- looking statements which refmect Al Mazayas

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SLIDE 1

AL MAZAYA FINANCIAL

SEPTEMBER 2016

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SLIDE 2

Any statement contained in this presentation that refers to activities estimated or anticipated future results or future activities are forward- looking statements which refmect Al Mazaya’s current analysis

  • f existing trends, information and plans.These forward-looking

statements are subject to a number of risks and uncertainties that could cause actual results to differ materially depending on factors such as the availability of resources, the timing and effect of regulatory actions, the success of new projects, the strength of competition, the success of research and development issues, unexpected contract breaches and terminations, exposure to product liability and other lawsuits, the effect of currency fmuctuations and other factors. Al Mazaya does not undertake the obligation to update or alter these forward-looking statements beyond its duties as an issuer of listed securities on the Kuwait Stock Exchange.

DISCLAIMER

01

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SLIDE 3

MAZAYA HOLDING CAPITAL STRUCTURE 2015

PAID UP CAPITAL KD 68,827,896 NUMBER OF SHARES NUMBER OF OUTSTANDING SHARES 688,278,956 621,093,185

LEGAL ESTABLISHMENT

02

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SLIDE 4
  • Mr. Abdulrahman M. Rashed

Vice Chairman

  • Mr. Rashid Al Nafjsi

Chairman

  • Mr. Abdul Hamid Mihrez

Board Member

  • Mr. Mohammad K. Al-Othman

Board Member

  • Mrs. Rasha Abdullah Al-Qenaei

Board Member

03

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SLIDE 5
  • Eng. Salwa Malhas

Chief BD & Marketing Offjcer

  • Mr. Ahmed Harfoush

Chief Financial Offjcer

  • Dr. Abdulaziz Jarkas

Chief Projects Offjcer

  • Mr. Khaled Abdulatif

Acting CEO – Mazaya Dubai

  • Eng. Abdulla Al Sultan

Chief Property Management Offjcer

  • Mr. Shlash Al Hajraf

Chief Legal Offjcer

  • Mr. Cem Yolcu

CEO – Mazaya Turkey

  • Eng. Ibrahim A. Al Soqabi

Mazaya Holding CEO

EXECUTIVE MANAGEMENT

04

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SLIDE 6

MAZAYA TOWERS Al Murqab Area, Block 3 Al Mutanabi Street CLOVER CENTER Jabriya, 4th Ring Road, Block 1A Next to Champion’s Gym 17th Floor BUSINESS AVENUE Jumeirah Lake Towers AA1 Tower, 45th Floor

MAZAYA HEADQUARTERS

KUWAIT KUWAIT DUBAI TURKEY

TURKEY

MAZAYA TURKEY

Eski Büyükdere Cd., İz Plaza Giz Binası No:9 K:16 D:60, Maslak Sarıyer, İstanbul

05

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SLIDE 7

LISTED IN DUAL MARKETS

IN 2005 IN 2006

06

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SLIDE 8

MAZAYA VISION & MISSION

  • 1. VISION
  • 2. MISSION
  • To be ONE of the MARKET

LEADERS in Real Estate Development,Working in Targeted Prospective markets with A STRONG BRAND which provides DISTINGUISHABLE PRODUCTS.

  • DEVELOP LAND MARK Projects.
  • SUSTAIN a value added quality of

PROJECTS.

  • DEVELOP HIGH CALIBER human

Capital.

  • DIVERSIFY the Projects to

Encompass THE WIDE SPECTRUM

  • f Real Estate SEGMENTS/SECTORS.

07

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SLIDE 9

SECTION 1 EXECUTIVE SUMMARY

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SLIDE 10

90 %

(Q2 - 2015 : 95%)

Operating Rev.

JUNE 30,2016 FINANCIAL HIGHLIGHTS - KD

08

234 mn

(Q2 - 2015 : 265 mn)

12 mn

(Q2 - 2015 : 16 mn)

25.7 mn

(Q2 - 2015 : 21.9 mn)

6.1 mn

(Q2 - 2015 : 7.0 mn)

6.66 fjls

(Q2 - 2015 : 6.61 mn)

33 %

(Q2 - 2015 : 27 %)

172 fjls

(Q2 - 2015 : 162 mn)

Book Value Total Assets

1.8 Times

(Q2 - 2015 : 1.3 mn)

Current Ratio

2015: 7 %

(2014 : 6 % )

Dividends (Cash)

4.14 mn

(Q2 - 2015 : 4.09 mn)

Net Profjt Cash

3.6 mn

(Q2 - 2015 : 3.1 mn)

Rental Revenue Revenue Gross Profjt EPS

107 mn

(Q2 - 2015 : 100 mn)

Parent Equity

78 mn

(Q2 - 2015 : 73 mn)

Bank Facilities

100 % Islamic

Debt Ratio

% of Total Rev

5.3 mn

(Q2 - 2015 : 6.0 mn)

Operating Profjt

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SLIDE 11

SECTION 2 FINANCIAL POSITION

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SLIDE 12

MAZAYA FINANCIAL POSITION

2009 2008 50 100 150 200 250 300 350 400 2010

Total Assets Total Liabilities Total Attributable Capital

2011 2012 2013 2014 2015 2016 Q2 -

2008

189,379,581 197,515,653 219,233,963 165,183,416 133,213,146 130,948,803 154,133,185 139,587,344 119,656,905 117,020,387 124,128,472 82,054,291 81,580,034 83,287,548 90,960,221 100,610,295 104,146,575 106,556,242 45,406,980 49,947,652 49,947,675 64,931,977 64,931,977 64,931,977 68,827,896 68,827,896 68,827,896

2009 2010 2011 2012 2013 2014 2015 Q2 -2016

Total Liabilities KD

Equity Attributable KD

Capital KD

344,876,259 363,716,816 309,214,683 252,050,012 221,052,974 228,116,141 261,888,635 251,041,687 233,948,308

Total Assets KD

09

KD Million

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SLIDE 13

Cash & Cash Equivalents Investment properties Properties Held For Trading Investment in joint ventures & associates Financial assets available for sale Advances to purchase properties Accounts receivable Others Tawarruq & Ijara Payable Term Loans Advance from customers Accounts payable and other credit balances Others

8% 1% 4% 5% 5% 2% 10% 1%

JUNE 2016 FINANCIAL POSITION

ASSETS % Q2- 2016 KD (mn) Q2- 2015 KD (mn) Cash and cash equivalents 5 % 12.12 11.97 Investment properties 49 % 115.22 115.01 Properties held for trading 25 % 57.37 71.65 Investment in joint ventures & associates 5 % 12.42 12.17 Financial assets available for sale 4 % 9.34 11.12 Advances to purchase properties 2 % 5.26 16.16 Accounts receivable 8 % 19.35 10.02 Others 1 % 2.88 2.93 Total Assets 100 % 233.95 251.04 Liabilities % Q2- 2016 KD (mn) Q2- 2015 KD (mn) Tawarruq & Ijara Payable 65% 78.25 80.37 Advance from customers 24% 28.21 42.59 Accounts payable and other credit balances 10% 12.42 15.90 Others 1% 0.78 0.73 Total liabilities 100 % 119.66 139.59 Equity % Q2- 2016 KD (mn) Q2- 2015 KD (mn) Share capital 65% 68.83 68.83 Others 25% 26.31 23.40 Retained earnings 11% 11.41 11.92 Equity to Parent Company 100 % 106.56 104.15 Non-controlling interests 3% 7.74 7.31 Total Liabilities & Equity 233.95 251.04

10

49% 25% 65% 24%

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SLIDE 14

5 %

Country

WEIGHT OF BUSINESS VALUE (KD)

Kuwait 28 % 51,362,503 94,529,796 4,611,975 3,273,504 16,206,043 2,599,910 3,006,355 9,417,562 51 % 2 % 2 % 9 % 1 % 2 % 5 % 100 % UAE Bahrain Oman KSA Lebanon Turkey Qatar 185,007,647 Total Assets

GEOGRAPHICAL REAL ESTATE ASSETS DISTRIBUTION JUNE 2016

UAE KSA OMAN BAHRAIN KUWAIT LEBANON TURKEY QATAR 51 % 1 % 2 % 2 % 2 % 9 % 28 %

QATAR TURKEY

11

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SLIDE 15

51%

INCOME GENERATING ASSETS

7%

INDIRECT REAL ESTATE

1%

POOL OF ASSETS FOR SALE

11%

LAND BANK

30%

PROJECTS UNDER DEVELOPMENT KD 55.1 m KD 2.7 m KD 20.1 m KD 94.6 m KD 12.4 m

MAZAYA REAL ESTATE ASSETS BY CATEGORIES JUNE 2016

Total Indirect Real Estate Income Generating Ready for Sale Properties under Development Land Bank Captions 62% 115,215,686 94,612,322 838,947 7,644,111 12,120,306 Investment Properties 31% 57,368,043

  • 1,875,158

47,463,407 8,029,477 Properties Held for trading 7% 12,423,918 12,423,918 Associates & Joint Venture 185,007,647 12,423,918 94,612,322 2,714,105 55,107,519 20,149,783 Total

12

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SLIDE 16

AbuDhabi - Morina Sharjah Lebanon Kuwait - Sharq Land Dubai - Liwan Dubai - DRC

MAZAYA LAND BANK - KD 20.1 mn

Location Abu Dhabi-UAE

  • No. of plots

1 Total Area 63,572 Sq.Ft BUA 382,359 Sq.Ft Type of use Residential Book value KD 6.1 mn Location Baalchami- Lebanon

  • No. of plots

12 Total Area 65,390 m2 BUA N.A Type of use Residential Book value KD 2.6 mn Location Sharq land - Kuwait

  • No. of plots

1 Total Area 2,903 m2 Type of use

  • Inv. &Residential

Book value KD 8.5 mn Location Dubai land

  • No. of plots

3 Total Area 129,503 Sq.Ft BUA 467,400 Sq.Ft Type of use Residential Book value KD 1.7 mn Location Sharjah-UAE

  • No. of plots

2 Total Area 36,870 Sq.Ft BUA N.A Type of use Residential Book value KD 0.155 mn Location Dubai- UAE

  • No. of plots

2 Total Area 47,582 sq. ft BUA 166,538 sq. ft. Type of use Residential Book value KD 1.0 mn

13

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SLIDE 17

MAZAYA INCOME GENERATING PROPERTIES

TOTAL VALUE : KD 94.6 mn

100% 100% 100% 100% 100% 100% 38% 76%

14

100%

Book Value KD- Millions Rental Revenue KD- Millions Occupancy Indigo 3.0 0.19 99 % Sky Gardens 32.3 1.13 93 % Al Ma‘ather 5.5 0.25 93 % Clover Center 6.9 0.56 98 % Mazaya Towers 30.3 1.02 99 % Mazaya Logistics 4.6 0.10 80 % Olaya Tower 10.8 0.30 68 % Newly Owend

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SLIDE 18

STEADY INCREASE IN RENTAL REVENUE

Q2 - 2016 2015 2014 2013 2012 2011 2010 2009 3,605,615 6,174,264 5,302,786 3,964,882 2,843,665 1,608,759 944,213 Rental Revenue (KD)

Rental Revenue (KD)

KD

15

1.0 2.0 3.0 4.0 5.0 6.0

  • 2009

0.9m 1.6m 2.8m 4.0m 5.3m 6.1m 3.6m 2010 2011 2012 2013 2014 2015 Q2 2016

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SLIDE 19

MAZAYA ASSETS FOR SALE - KD 2.7 mn

  • No. of units Available: 34
  • Total Area Sq.Ft : 49,779
  • No. of units Available: 1
  • Total Area Sq.Ft : 4,132

JLT Retail Units KD 0.389 mn Mazaya Business Avenue KD 2.33 mn

16

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SLIDE 20

PROPERTIES UNDER DEVELOPMENT - KD 55.1 mn

  • Estimated Development cost KD 7.9 mn
  • Scheduled completion: Q3 2017
  • leasable area: 8,144 sq m
  • Estimated Annual Income KD 852,044
  • Usage: Medical Clinic center
  • Newly Launched
  • Number of Building 4
  • Sellable area : 443,525 sq.ft
  • Estimated Revenue: KD 27 mn
  • Estimated Development cost (zone 1) KD 6.5 mn
  • Scheduled completion: Q1- 2018

Zone 1 (Sales)

  • Residential Sellable Area: 11,444 m2
  • Commercial Sellable Area : 3,947 m2
  • Estimated Revenue: KD 8.1 mn
  • Total number of building : 29
  • Sellable area: 2.4 million sq.ft
  • Area Sold to Date :85%
  • Estimated Revenue: KD 59 mn

Kuwait - KD 4.4 mn Dubai-Liwan - KD 6.0 mn Oman - KD 3.3 mn Dubai-Liwan - KD 41.5 mn Total Cost KD 7.9 mn Total Cost KD 22 mn Total Cost KD 111 mn

17

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SLIDE 21

INDIRECT REAL ESTATE - KD 12.4 mn

Company: Kuwaiti shareholding company (closed) Paid-up capital: KWD 50 mn Sector, Industry: Real Estate, Investors & Developers Principal Activities: purchase, development, management & organization, sale & rent of buildings Ownership: 17.54% Investment Book Value: KD 9.4 mn Book Value per share: Fils 105 per share Ownership: 40% JV Capital: TL 72M (Mazaya share TL 28.8 mn) Purpose: Develop & manage Mixed use Real Es- tate project Project percentage completion: 99% Project percentage of sale: 85%

18

50 % Newly Acquired for a Total of 90%

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SLIDE 22

RITIM ISTANBUL PROJECT

During Q3, 2016, Al Mazaya acquired additional 50% ownership stake in Ritim Istanbul to have a total stake of 90% of the project. Transaction settlement: 20% cash and 80% in-kind. Total Saleable area (Residential & Offjces): 116K SqM Total leasable area (Mall): 28K SqM Sales achieved: 90% Leases secured: 55% - 60% Total sale revenue: TRL 570M (KD 57M) Total development cost: TRL 560M (KD 56M) Annual rental income: TRL 15M (KD 1.5M) Project’s profjtability after tax (excluding FV adjust.): TRL 120M (KD 12M) The Mall will be kept as an investment property.

19

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SLIDE 23

INVESTMENTS (AFS) - KD 9.3 mn

KD 0.177 mn KD 0.223 mn KD 0.143 mn KD 0.103 mn KD 6.4 mn KD 0.560 mn KD 0.748 mn KD 0.539 mn KD 0.156 mn KD 0.169 mn

20

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SLIDE 24

DUE TO BANKS - JUNE 2016

KUWAIT INTERNATIONAL BANK (KIB) KUWAIT FINANCE HOUSE (KFH) Mashreq Bank Warba Bank KD 30,277,550 KD 18,988,459 KD 1,092,112 KD 27,887,208 36% 39% 24% 1%

KD 78,254,401 100 % Total Value

VALUE %

21

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SLIDE 25

WELL-STAGGERED DEBT MATURITY PROFILE

Total More than 5 Years 1 - 5 Years up to 1 Year Amount in KD - Millions

78,254,401 18,066,713 49,327,445 10,860,243 Principal Installments

  • 23 % scheduled to be paid after fjve

years.

  • Debt distributed on Four different banks.
  • Reached full Islamization of debt.

22

  • 5

10 15 20 25 30 35 40

KD

45 50 6.1m 46.3m 31.2m

Up 1 Year 1-5 Years More than 5 Years

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SLIDE 26

MAJOR FINANCIAL RATIOS – JUNE 2016

Dividends Yield - 2015 Interest Bearing Debt to Assets Book Value (Fils) ROA ROE Interest Coverage Ratio Current Ratio Operating Revenue ( % of Total Revenues)

6.4 % 3.7 1.8 33 % 172 5.6 % 7.8 % 90 %

23

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SLIDE 27

INVEST IN MAZAYA SHARES

STOCK VALUE NEW POTENTIAL PROJECTS Major Highlights

  • a. Strong Management with proven track record.
  • b. Diversifjed Geographical Concentration.
  • c. New Projects (Kuwait – Dubai – Turkey - Oman).
  • d. Diversifjed Sources of income.
  • e. Potential increase in rental income (increase in occupancy

and rates as well as new under development income generating assets).

  • f. Available un-collateralized Income Generating Assets.
  • g. Ability to raise more debt.
  • h. Conservatively Valued Land Bank.
  • i. High Liquidity.
  • j. Available cash to complete all on-going projects.
  • k. Dividends payout.

FINANCIAL RESULTS Book Value As of June 2016 Market Price Arqam Valuation

172 Fils 114 Fils 160 Fils

Descriptions

  • June. 2016
  • June. 2015

Equity 107 mn 100 mn Net Profjt 4.14 mn 4.09 mn EPS ( Fils) 6.66 6.61

Clover Center KD 7.9 mn KD 22 mn KD 6.5 mn TL 560 mn

Kuwait Dubai Oman Turkey

Q-Line Mazaya Residence Ritim Istanbul

24

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SLIDE 28

Conclusion

25

Very Strong Operationally Solid Balance Sheet Focused on Core Business

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SLIDE 29

Thank You