Annual Results Presentation Full Year ended 31 December 2013 4 - PowerPoint PPT Presentation

Annual Results Presentation Full Year ended 31 December 2013 4 March 2014 0

Disclaimer This presentation is being made only to, and is only directed at, persons to whom this presentation may lawfully be communicated (relevant persons). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. This presentation does not constitute or form part of, and should not be construed as, an offering of securities or otherwise constitute an invitation, inducement or recommendation to any person to underwrite, subscribe for or otherwise acquire securities in any company within the DAMAC group (the Group). Certain statements made in this presentation are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results expressed or implied in these forward-looking statements. Forward-looking statements speak only as of the date of this presentation. 1

Investor Relations Team Hussain Sajwani Adil Taqi Ziad El Chaar Executive Chairman and Group Chief Financial Officer Managing Director Chief Executive Officer Zaid Ghoul Niall Mc Loughlin Senior Advisor and Senior Vice President, Head - Investor Relations Corporate Communications 2

2013 Results Presentation Slide 3 Page DAMAC Overview and 2013 Performance highlights 1 4 Hussain Sajwani, Executive Chairman and Chief Executive Officer Page Slide 5 Performance review 2 7 Adil Taqi, Group Chief Financial Officer Slide 8 Page Project Portfolio 3 13 Ziad El Chaar, Managing Director Page The Dubai Market and Outlook / Key Messages 4 18 Hussain Sajwani, Executive Chairman and Chief Executive Officer Questions and Answers 5 3

DAMAC Overview Established in 2002 Market leaders in the development of luxury residential real estate in the Middle East 15 7 453 sales offices countries with projects sales staff 312 c.1,400 Over 25,000 Project execution and employees units under progress and planning execution support team Pioneered the regional development 87% 93% of branded real estate – Fendi of business in Dubai with selective of customers are non-UAE nationals CASA, Versace, Trump and expansion into major cities across the (2007-13 sales value) Paramount Middle East Became the first Gulf based real Launched a hotels and Serviced estate developer to list on the Apartments division – DAMAC Maison Operates a ‘Buy, Design, Sell, Build’ London Stock Exchange in – in response to customer demand. December 2013 strategy to ensure quality and improve margin 9,206 Hospitality units GDR’s rising c.29% to the end of in-progress February 2014 First results since IPO show record performance and a strong platform for growth 4

DAMAC Overview Portfolio Overview Strong delivery track record across economic cycle In-planning (3) Completed (1) In-progress (2) 3,992 9,318 Units Completed projects in 2 countries in 6 countries 9,318 units 23,340 units 2,022 units Total: Dubai - 8,594 units 3,253 78% 88% In Dubai: 92% Outside Note: (1) Completed projects: projects with Building Completion (BCC) received Dubai - (2) In-progress projects: projects with enabling works started / consultant appointed 2,073 722 units (3) In-planning projects: projects with no consultant appointed Post- During Cumulative Pre-crisis crisis Crisis up to 31 upto 2008 2009-11 2012-13 Dec 2013 5

2013 Performance highlights Results reflect strong economic growth and significant number of new projects launched during the year Revenue +77% Gross profit +180% Operating profit +199% $1,224m $788m $636m (2012: $692m) (2012: $281m) (2012: $213m) Net cash flow +1,720% Net profit +202% Total assets +34% from operating activities $642m $3,042m $484m (2012: $213m) (2012: $2270m) (2012: $27m) Debt -18% Cash +385% Debt to Total Assets $85m $578m 2.8% (2012: $104m) (2012: $119m) (2012: 4.6%) Booked Sales +272% Gross Margins +24ppt Operating Margins +21ppt $2,458m 64.4% 52.0% (2012: $661m) (2012: 40.7%) (2012: 30.7%) 6

Performance Review The Waves – Dubai Marina Lake View – Dubai JLT Adil Taqi Group Chief Financial Officer The Summit – Burj Area Lake Terrace – Dubai JLT Marina Terrace & Ocean Heights – Dubai Marina 7

Financial Review Revenue and Cashflow from Full year 2013 highlights Capital Structure Profitability Operations  Revenues grew 77% to $1,224mn in 2013 Equity ($mn) Revenue ($mn) Cashflows from Operations ($mn) Bank borrowings ($mn) (2012: $692mn) Profit for the year ($mn) Cash & Bank Balance ($mn) 600 Gross Margins % (RHS) 659  Gross margins at 64% up 24ppt vs last year 700 1,400 80% 484 64% 500 578 600 1,200  Net profit grew 202% to $642mn in 2013 60% 400 500 1,000 41% (2012: $213mn) 40% 400 800 300  Net Cash generated from operating 300 600 20% 200 activities at $484mn (2012: $27mn) 200 400 140 119 104 0% 85 100  Total Assets up 34%, mainly led by $459mn 100 200 27 692 213 1,224 642 increase in ‘Cash & Bank balance’ and 0 0 -20% 0 2012 2013 2012 2013 2012 2013 $367mn increase in ‘ Development Properties’ during 2013 Total Assets and Components of Advances from  Advances from customers stood at $1,715mn Dvlpmnt Prop & Cash Development Prop. Customers as at Dec’13. (Dec’12: $1,587mn) Completed units ($mn) Total Assets ($mn) Advances from Customers ($mn)  Land payments outstanding as at Dec’13 at Properties under development ($mn) Dvpmt Prop & Cash as % of TA (RHS) 1,750 Land held for future developments ($mn) $227mn. 1,933 2,500 85% 2,000 83% 1,700  Debt repayable in 2014 at $60mn 199 1,565 82% 1,600 2,400 84 1,650  Listed GDRs priced at $12.25 on the main 79% 1,200 market of the London Stock Exchange on 3 2,300 1,600 1,650 December 2013 following a successful Initial 1,296 76% 800 74% Public Offering 2,200 1,550 73% 400 1,587 1,715 2,270 3,042 185 84 0 1,500 2,100 70% 2012 2013 2012 2013 2012 2013 8

Statement of Financial Position Components of Development Properties – Dec’2013 In US$ mn 2013 2012 Change ASSETS Land held Property and equipment 12.5 11.2 1.3 Completed for future Development properties 1,932.7 1,565.4 367.3 dvplmt, 84 properties, 199 Other financial assets 77.9 72.2 5.7 Trade and other receivables 409.5 63.2 346.3 Financial investments 30.7 0.0 30.7 Due from related parties 0.0 439.1 (439.1) Cash and bank balances 578.2 119.2 459.0 Total Assets 3,041.5 2,270.3 771.2 Land/Prop erties EQUITY AND LIABILITIES under Equity dvplmt, 1,650 Share capital 650.0 86.4 563.6 Statutory reserve 41.3 41.0 0.3 Group restructuring reserve (566.7) 0.0 (566.7) Components of Trade and other payables - Dec’2013 Investment revaluation reserve 0.5 0.0 0.5 Provision Retained earnings 534.0 12.5 521.5 Retentions for dvlpmt Total Shareholder's Equity 659.1 139.9 519.2 payable, prop 99 payments, 233 Liabilities Other payables, Bank borrowings 85.3 104.4 (19.1) 142 Due to related parties 1.2 191.5 (190.3) Provision for employees’ end of 4.9 3.5 1.4 Accruals, service indemnity 102 Trade and other payables 2,291.0 1,831.0 460.0 Total Liabilities 2,382.4 2,130.4 252.0 Advances from Total Shareholder's Equity & Customers 3,041.5 2,270.3 771.2 9 liabilities , 1,715

Statement of Comprehensive Income In US$ mn 2013 2012 Growth Revenue Net Profit Revenue 1,224.3 692.0 77% Revenue ($ mn) Net Profit ($ mn) Cost of sales (436.3) (410.6) 6% 1,224 800 1,250 Gross profit 788.0 281.4 180% 642 Gross profit margin 64% 41% 640 1,000 Other operating income 69.4 5.5 1162% 692 750 480 General, administrative and selling (181.1) (44.6) 306% expenses 500 320 Brokerage commissions (63.4) (14.6) 334% 213 Depreciation (3.6) (3.5) 3% 250 160 Reversal of /(provision for) 0 0 impairment on development 27.1 (11.6) NA 2012 2013 2012 2013 properties Operating profit 636.4 212.6 199% Gross Profit Margin % Net Profit Margin % Operating profit margin 52% 31% Gross Profit Margin (%) Net Profit Margin (%) Other Income 5.7 2.9 97% 75% 75% Finance Income 4.3 2.5 72% 64% Finance Costs (4.9) (5.5) -11% 60% 60% 52% Profit/(Loss) for the period 641.5 212.5 202% 41% 45% 45% Items that may be reclassified 0.5 0.0 NA subsequently to profit or loss 31% 30% 30% Total Comprehensive Income 642.0 212.5 202% Net income margin 52% 31% 15% 15% 0% 0% 2012 2013 2012 2013 10