INVESTOR PRESENTATION February 2020 CONTENTS TABLE OF CONTENTS - - PowerPoint PPT Presentation

INVESTOR PRESENTATION

February 2020

TABLE OF CONTENTS

CONTENTS

Majid Al Futtaim 2019 Performance Update

Appendix

• Majid Al Futtaim Group Overview

2

2019 Overview

IN 2019 WE HAVE SUSTAINED OUR FINANCIAL POSITION, WHILST CELEBRATING SOME MILESTONE ACHIEVEMENTS

Revenue increased1% to USD 9.6B EBITDA increased1% to USD1.3B Cashflow from Operations to EBITDA at122% 2 green sukuks issued totalling USD 1.2B Portfolio of 26 shopping malls welcomed

• ver 200 million visitors

Opened 42 new Carrefour stores Total store count 306 Added 146 cinemascreens Total screens511

Environmental Social Governance

Obtained “low risk” ESG rating fromSustainalytics, and “A” rating from MSCI

4

THERE ARE LONG TERM OPPORTUNITIES IN THE REGION DESPITE CURRENT HEADWINDS

CurrentHeadwinds 2040Outlook SOURCE: McKinsey Consumer Trends Database, Oxford Economics, United Nations, Global insight, Team analysis, Expert interviews, HSBC, IMF, PWC report, UNCTAD, Focus Economics, WEF MENA Risks Landscape

• MENA economies adapting

to slower growth in the short term until reform programs shape the longer term

• MENA region continuesto

exhibit youth unemployment rates higher than global average

• UAE’s private sector

remains in a competitive environment

• Dubai tourism mix

changing due toUSD strength

• Lebanon experiencing

political and economic instability

• Geopolitical tensions have

escalated around US-Iran relations

• MENAP region’s

contribution to world GDP will increase by 1-2%, driven by population growth

• Oil prices adjusted to a

“new normal” range as a result of structural changes in the global economy

• Trade flows expected to be

growing at above global averages

• Diversification of GCC

economies away from hydrocarbons

• High population growth

for MENAP

• Saudi Arabia and Egypt

will constitute a sixth of regional real GDP

• Pakistan will become a

new growth pocket

• Mid single digit growth

expected for the rest of Africa, with anemerging middle class

5

FROM A CUSTOMER BEHAVIOR PERSPECTIVE, THERE HAS BEEN A STRONG SHIFT TOWARDS LIFESTYLE, CONVENIENCE AND DIGITAL

Social connection Sustainability

use Facebook or Twitter when finding inspiration for purchases Are willing to pay more for sustainable brands

Trends over brands

Retail CEO’s continue to see

loyalty towards “trends” rather than “brands”

Experiences

Consumers and especially millennials

Look for distinctive and renewed experiences

Convenience

36% Of global respondents

emphasized price and convenience as a driver for online

Omni-channel

73% Of consumers

use a combination of online and

• ffline while shopping

Personalization

77% Of global consumers

expect to see more personalized content in the future Of global consumers

66%

Of MENA respondents

64%

Connectivity

in the Middle-East in 2019

Internet Penetration Rate is at

71%

6

SOURCE: PWC survey 2017, Total Retail 2017, World Bank, ADEC, Saudi National Statistics, UN, Hootsuite, Nielsen, Reuters, Mckinsey study

Cost & Balance SheetOptimization Procurement and Supply Chain Financial Discipline in Investments Capability Building Sustainability

WHILE ADOPTING A LEAN AND AGILE APPROACH

Maintain leadership in our core countries

Protect our leadership position in the UAE

Expand to be leaders in adjacent/core geographies

Expand our presence inEgypt and Saudi Arabia, driven by

• ur shopping malls business

Build a foundation position in Africa

Expand in additional African countries, primarily with Carrefour

Grow at scale at least

• ne adjacent business

Evaluate business opportunities in adjacent businesses

WE REMAIN COMMITTED TO OUR STRATEGIC PRIORITIES

7

Sustainability

OUR SUSTAINABILITY STRATEGY IS INTEGRATED IN THE WAY WE DO BUSINESS

Our strategy will manage the socio-economic and environmental issues that matter most to us and

• ur stakeholders

Majid Al Futtaim has been recognized by external agencies:

18.9 /100 Low

LIVE

OUR PEOPLE

RESOURCES

• Net Positive carbon
• Net Positive water
• Circular economy
• Climate change adaptation
• Ecosystem services
• Local economic development
• Promoting sustainable lifestyles
• Product quality & safety
• Crime and security
• Community well being & public realm
• Responsible procurement
• Healthy workplaces
• Human rights & employment conditions
• Health & safety
• Changing role of women in the workplace

NON-EXHAUSTIVE

9

2019 Performance

SUMMARY OF MAJID AL FUTTAIM’S 2019 PERFORMANCE

GEOGRAPHICAL SPLIT – 31 December 2019

STABILITY AND STRENGTH THROUGH DIVERSIFICATION

By Revenue By EBITDA

SEGMENTAL SPLIT – 31 December 2019

By Revenue By EBITDA

¹ Others includes Kuwait, Jordan, Pakistan, Lebanon, Iraq, Georgia, Armenia, Kenya, Uganda

CFO:EBITDA at: 122% Revenue +1% vs PY to: USD 9.6bn EBITDA +1% vs PY to: USD 1.3bn Assets +5% vs PY at: USD 17.2bn 2 STABLE FINANCIAL PERFORMANCE DELIVERED IN 2019

11

Majid Al Futtaim Properties

1,264 1,256

2018 2019

814 813

2018 2019

Revenue

(USDmn)

EBITDA

(USDmn)

2019 PERFORMANCE: MAJID AL FUTTAIM PROPERTIES

• Increased our shopping mall portfolio to 26 with the opening of

City Centre Al Maza, City Centre Suhar and My City Centre Masdar

• Completed redevelopment of City Centre Alexandria in

Egypt, and City Centre Ajman in the UAE

• Visitors to our malls crossed the 200M mark for the first time

Operational Highlights

Malls avg occupancy 93% Footfall y-o-y +4% Rent to sales 13% Hotels avg occupancy 80% REVPAR change y-o-y

• 8%

13

Majid Al Futtaim Retail

7,622 7,662

2018 2019

383 391

2018 2019

• Celebrated 300th Carrefour store opening, while expanding to

16 countries with entry to Uganda

• Launched new F&B 'live cooking’ concept in select UAE stores
• Introduced robotic automation to increase the capacity of online
• rder fulfilment centres
• Inaugurated our Retail Business School in the UAE, providing

functional and commercial training for our employees

Operational Highlights

2019 PERFORMANCE: MAJID AL FUTTAIM RETAIL

Sales (LFL)

• 5%

Hypermarket openings 12 Supermarket openings 30 Total stores 306 Online orders y-o-y +600%

Revenue

(USDmn)

EBITDA

(USDmn) 15

Majid Al Futtaim Ventures

651 761

2018 2019

87 113

2018 2019

2019 PERFORMANCE: MAJID AL FUTTAIM VENTURES

• VOX cinemas celebrated 20 years of operations as it

approached the 500 screen milestone

• Continued expansion of cinemas in Saudi Arabia with the opening
• f 78 new screens across 7 sites
• L&E introduced the first Dreamscape experience in the Middle East

Operational Highlights Revenue

(USDmn)

EBITDA

(USDmn) Cinema screensadded 146 Total cinema screens 5111 Total L&E venues 43

17

Financing Overview

GROUP DEBT PROFILE (1/2)

Debt Maturity Profile (USD mn) All Senior Unsecured financing obligations rank pari passu among themselves

Majid Al Futtaim Holding Majid Al FuttaimProperties

Crossguarantees

$1.2bn

Issued two 10 year Green Sukuks

$2.6bn

Undrawn Available Committed Lines

$200mn

Refinanced EGP Al Maza project finance with new senior unsecured term loan

5.9 yrs1

Weighted Average Debt Life

800 500 1,200 168 31 47 1088 20 21 108 400 800 1200 1600 2000 2020 2021 2022 2023 2024 2025 2026+ Capital Markets Bank Debt

Majid Al Futtaim Group’s Balanced Funding Profile (USD bn) 31 December 2019 Notes

Majid Al Futtaim Holding 2.0 Primarily Senior Unsecured

• bligations at Holding level

Majid Al Futtaim Properties 1.7 Primarily Senior Unsecured

• bligations at Properties

level Others 0.2 Primarily project finance with limited recourse to parent

Total 3.9

19

GROUP DEBT PROFILE (1/2)

Funding Risk Management Framework Policy/Covenant 2018 2019 Liquidity Coverage - Months 18 49 52 Interest Rate Risk - Duration inYears 0.5-3.5 2.3 2.8 EBITDA Interest Cover (x)1 >2.0 8x 9x Total Net Debt to Total Equity(x) <0.7 0.4 0.4 EBITDA from encumbered assets as % of total EBITDA 4% 1% Secured debt as a percentage of GrossDebt 8% 1% 31 Dec 31 Dec

Strong Leverage Metrics

Debt Capital Markets Issuances % $bn Bonds 12% 0.8 Sukuk 26% 1.7 Total Debt Capital Markets Issuances 38% 2.5 Bank Facilities % $bn Drawn 22% 1.4 Undrawn 40% 2.6 Total 62% 4.0 Total Bank Commitments & Debt Capital Markets 100% 6.5 Less Drawn (3.9) Plus Cash 0.4 Total Liquidity 3.0 Investment grade creditratings 31 Dec 2018 31 Dec 2019 Fitch BBB BBB Standard &Poor’s BBB BBB

Facilities & liquidity

1,044 1,145 1,152 1,231 1,458 2,517 2,612 2,804 3,418 4,775 2.4x 2.3x 2.4x 2.8x 3.3x 1 2 3 4 5 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2015 2016 2017 2018 2019 EBITDA Net Debt (USD mn) Net Debt / EBITDA (times) 2019 includes impact of IFRS16

¹ EBITDA INTEREST COVER MEANS EBITDA OVER NET FINANCE CHARGES (EXCL IFRS 16 IMPACT)

20

TRUE TO OUR COMMITMENT TO OUR CREDIT RATING, OUR TOP-DOWN CAPITAL ALLOCATION APPROACH IS MANAGED WITHIN THE DEBT CAPACITY OF THE “BBB” METRICS AND WITH AN EYE ON PRUDENT FINANCIAL MANAGEMENT

MEASURED GROWTH & STEADY DEVELOPMENT PIPELINE

CITY CENTRE AL ZAHIA

SUPER REGIONAL MALL (SHARJAH) GLA: 136,000 M2

UAE KSA

MALL OF OMAN

SUPER REGIONAL MALL (MUSCAT, OMAN) GLA: 142,000 M2

MALL OF SAUDI

SUPER REGIONAL MALL (NORTH RIYADH) GLA: 321,000 M2

OMAN MALL DEVELOPMENT PIPELINE RETAIL AND CINEMA PIPEINE 2020

STORES CINEMA SCREENS

UAE 6 32 KSA 5 87 EGYPT 10

• OTHERS 1

20+

• ¹ OTHERS INCLUDES OMAN, JORDAN, GEORGIA,PAKISTAN, KENYA, UGANDA, UZBEKISTAN

21

IN SUMMARY

Appropriately managing the risks Focused on sustainable growth A strong foundation

• Strong balance sheet
• Stable cash flow generation
• Best in class corporate governance
• Established track record, reputation & brand
• Diversified sources of funding
• Focus on diversification
• Cost optimization and operating efficiencies
• Business performance management
• Top down capital allocation
• Stress testing
• Country risk management
• Defined policies & procedures

22

CONTENTS

TABLE OF CONTENTS

Majid Al Futtaim 2019 Performance Update

Appendix

• Majid Al Futtaim Group Overview

23

MAJID AL FUTTAIM GROUP OVERVIEW (1/2)

BEST IN CLASS GOVERNANCE PRINCIPLES

• Voluntarily adopted the principles of the Combined Code on Corporate Governance for listed

companies in the UK

• Strong operating company board structures reporting to a group board

SOLID TRACK RECORD

Majid Al Futtaim HoldingLLC Consolidated Financials (USDmn)

REGIONAL FOOTPRINT

1

16countries

since 1992

GROUP CORPORATE STRUCTURE

• MR. MAJID AL FUTTAIM

• MR. TARIQ AL FUTTAIM

MAJID AL FUTTAIM HOLDING

RETAIL

PROPERTIES

VENTURES

HIGHEST RATED PRIVATELY OWNED CORPORATE IN THE GCC

Rating Agency Rating Outlook Latest Affirmation Date Standard & Poor’s BBB Stable July 2019 Fitch Ratings BBB Stable Nov 2019

7,445 8,128 8,788 9,436 9,573 1044 1,145 1,152 1,253 1,261

2015 2016 2017 2018 2019 Revenue EBITDA

24

MAJID AL FUTTAIM GROUP OVERVIEW (2/2)

SOLID FINANCIAL PERFORMANCE ON THE BACK OF A MANAGED GROWTH STRATEGY

FINANCIAL HIGHLIGHTS

Majid Al Futtaim has a proven track record of delivering strong financial results on the back of an effective growth strategy

MAJID AL FUTTAIM HOLDING LLC CONSOLIDATED FINANCIALS (USDMN)

Item 2015 2016 2017 2018 2019 Assets 13,853 14,375 16,081 16,436 17,178 Revenue 7,445 8,128 8,788 9,436 9,573 EBITDA 1,044 1,145 1,152 1,253 1,261

The Group’s ability to combine capital intensive high margin business (shopping malls) with capital light, high volume business (hypermarkets) allows it to effectively manage its growth.

EBITDA MARGIN BY ENTITY (%) MAJID AL FUTTAIM RETAIL (USDmn) MAJID AL FUTTAIM PROPERTIES (USDmn) MAJID AL FUTTAIM VENTURES (USDmn)

63% 63% 64% 64% 65% 5% 5% 5% 5% 5.1% 13% 12% 12% 13% 15% 0% 10% 20% 30% 40% 50% 60% 70% 2015 2016 2017 2018 2019 MAF Properties MAF Retail MAF Ventures

1,114 1,223 1,254 1,264 1,256 710 766 800 814 813 2015 2016 2017 2018 2019 Revenue EBITDA 6,011 6,503 7,049 7,622 7,662 319 335 330 380 391 2015 2016 2017 2018 2019 Revenue EBITDA 393 492 577 651 761 51 72 70 87 113 2015 2016 2017 2018 2019 Revenue EBITDA

25

BUSINESS OVERVIEW: MAJID AL FUTTAIM PROPERTIES

GROUP’S CORE BUSINESS

OVERVIEW OF MAJID AL FUTTAIM PROPERTIES MAJID AL FUTTAIM PROPERTIES’ KEY STRENGTHS

13 Hotels 11 in UAE 2 in Bahrain

ALLIANCES AND PARTNERSHIPS WITH KEY RETAILERS ESTABLISHED TRACK RECORD, REPUTATION & BRAND UNIQUELEISURE OFFERS

MAJID AL FUTTAIM PROPERTIES

IN-HOUSE EXPERTISE (FULLY INTEGRATED OPERATIONS) PRIMELOCATIONS SECURED FOR BUSINESS

MILLION

200

VISITORS AND GROWING ANNUALLY ACROSS ALL OF OUR MALLS

SHOPPING MALLS SUCCESSFULLY OPERATING

IN 5 COINTRIES ACROSS THE MIDDLEEAST AND NORTHAFRICA

26

OVER 1.5 MILLION SQM

MILLION SQMOF GLA OF PRIME RETAIL SPACE AND EXPANDING

OVER 1.5

3 NEW PROJECTS

IN THE DEVELOPMENT PIPELINE IN 3 COUNTRIES ACROSS THE REGION

171 175 186 192 200

97% 98% 94% 95% 93% 72% 75% 76% 75% 80%

0% 50% 100% 150% 30 60 90 120 150 180

2015 2016 2017 2018 2019

Total Shopping Mall Footfall - Million Shopping Mall Occupancy Hotels Occupancy

26

MAJID AL FUTTAIM PROPERTIES (1/2)

Mall of the Emirates Opened: 2005 , 255k m2 GLA Occupancy Rate : 94% City Centre Al Shindagha Opened: 2016 , 25k m2 GLA Occupancy Rate : 92% City Centre Sharjah Opened: 2001 , 51k m2 GLA Occupancy Rate : 99% City Centre Ajman Opened: 1998 , 55k m2 GLA Occupancy Rate : 97% City Centre Fujairah Opened: 2012 , 35k m2 GLA Occupancy Rate : 96% My City Centre Masdar Opened: 2019 , 18k m2 GLA Occupancy Rate : 77% My City Centre Al Dhait Opened: 2018 , 5k m2 GLA Occupancy Rate : 71% My City Centre Al Barsha Opened: 2016 , 4k m2GLA Occupancy Rate : 86% My City Centre Nasseriya Opened: 2014 , 5k m2GLA Occupancy Rate : 77% City Centre Mirdiff Opened: 2010 , 203k m2 GLA Occupancy Rate : 92% City Centre Deira Opened: 1995 , 117k m2 GLA Occupancy Rate : 96% City Centre Me’aisem Opened: 2015 , 23k m2 GLA Occupancy Rate : 92%

UAE 27

MAJID AL FUTTAIM PROPERTIES (2/2)

Mall of Egypt Opened: 2017 , 162k m2GLA Occupancy Rate : 93% City Centre Alexandria Opened: 2003 , 64k m2 GLA Occupancy Rate : 95% City Centre Maadi Opened: 2002 , 30k m2GLA Occupancy Rate : 99% City Centre Muscat Opened: 2001 , 69k m2 GLA Occupancy Rate : 100% City Centre Qurum Opened: 2005 , 27k m2GLA Occupancy Rate : 99% City Centre Beirut Opened: 2013 , 63k m2GLA Occupancy Rate : 92% City Centre Suhar Opened: 2019 , 35k m2GLA Occupancy Rate : 87% My City Centre Sur Opened: 2018 , 16k m2GLA Occupancy Rate : 93% City Centre Bahrain Opened: 2008 , 160k m2GLA Occupancy Rate : 96%

OMAN EGYPT BAHRAIN LEBANON

City Centre Al Maza Opened: 2019 , 102k m2GLA Occupancy Rate : 83%

28

BUSINESS OVERVIEW: MAJID AL FUTTAIM RETAIL

GENERATING STEADY CASHFLOWS

OVERVIEW OF MAJID AL FUTTAIM RETAIL

306

North Africa and CIS Regions

In 15 countries Across the MiddleEast, Majid Al Futtaim Hypermarkets is a wholly owned subsidiary since 25 June 2013 when Majid Al Futtaim acquired the remaining 25% from Carrefour SA. As part of the transaction, Majid Al Futtaim also renewed its exclusive franchise partnership with the Carrefour group until 2025 and extended it to an additional 19 new countries. Carrefour charges a sale-based franchise fee and provides approval on new store openings.

Countries

Across the Middle East, North Africa and CIS Regions

Carrefour Outlets

Over45

New stores planned in 2020

Exclusive Franchise Rights for 37

OPERATING FRAMEWORK

Low Prices Good Quality Wide Choices

Majid Al Futtaim Retail aims to capitalize on its strong supply chain and procurement procedures to deliver value to its customers.

Purchasing Power Reinvest Rebates Supplier Rebates Sales Volume

29

MAJID AL FUTTAIM RETAIL

Kuwait Bahrain Kazakhstan

Egypt Pakistan Saudi Arabia Lebanon Iraq Jordan Oman Qatar UAE Georgia Armenia Kenya Uganda

Country Hyper Super

UAE 31 73 Oman 10 3 Pakistan 7 1 Bahrain 9 4 Armenia 2 Egypt 15 38 Jordan 5 33 Kuwait 3 5 Lebanon 3 2 Kenya 6 1 KSA 18 1 Qatar 5 5 Iraq 4 2 Georgia 2 17 Uganda 1

TOTAL 119 187

30

BUSINESS OVERVIEW: MAJID AL FUTTAIM VENTURES

COMPLEMENTARY BUSINESSES

Majid Al Futtaim Ventures builds and manages value enhancing businesses for the Majid Al Futtaim Group, focusing on selected sectors that are relevant for the wider business in the region.

WHOLLY-OWNED COMPANIES

511

Cinema Screens Across the MENARegion

95

Stores in 7Countries

Provides unique leisure offerings to Majid Al Futtaim malls Majid Al Futtaim Leisure & Entertainment LLC Majid Al Futtaim Finance LLC Majid Al Futtaim Cinemas LLC Majid Al Futtaim Fashion LLC Credit Card Issuer Business

IntroducedVisa Cards in2010

Over 143K

Cards inForce

JOINT VENTURE COMPANIES

JV providing Energy Services and Facilities Management Formed in 2002 (as Dalkia)

31

ROBUST GOVERNANCE STRUCTURE

BOARD RESPONSIBILITIES GOVERNANCE PRINCIPLES

• Majid Al Futtaim places considerable emphasis on governance and transparency within its operational framework.

The company has voluntarily adopted the principles of the Combined Code on Corporate Governance for listed companies in the UK across all areas of its business Strong operating company Board structures reporting to a group Board Set out the principles of Corporate Governance across each of the group’s operating entities and geographies

• Majid Al Futtaim has obtained a Strong management & governance (M&G) score by S&P across its universe of rated entities in the

Gulf region – one of the two only entities that such score has been awarded

Majid Al Futtaim Holding Board

The Board of Majid Al Futtaim Holding provides independent oversight to protect shareholders’ interests: 1) Acting as shareholder of operating companies; 2) Controlling decisions related to strategic new businesses / markets or divestments; and 3) Via managing Funding and Capital allocation

Operating Companies Boards

Each operating company maintains its own Board of Directors responsible for setting strategic goals, measurement of the success of the businesses in achieving objectives and maintaining corporate accountability. Chairmen of the Operating Company boards are members of the Holding Board of Directors

32

MAJID AL FUTTAIM HOLDING BOARD OF DIRECTORS

Sir MichaelRake

Chairman

Chairman of Phoenix GlobalServices and Wireless Logic Group Former Chairman of BT Groupand KPMG International

Sir Ian Davis

Non-Executive Director

Chairman of Rolls Royce andformer Worldwide Managing Director at McKinsey & Company

Tariq Al Futtaim

Non-Executive Director

Former chairman of the MajidAl Futtaim Charity Foundation

Alan Keir

Non-Executive Director

Non Executive Director atHSBC UK Bank Plc Non Executive Director atSumitomo Mitsui Banking Corporation

Victor Chu

Non-Executive Director

Chairman of FirstEastern Investment Group Co-founder and director ofPeach Aviation

Lord Rose

Non-Executive Director

Chairman of Ocado and Non Executive Director ofWoolworths Holding Limited Former CEO of Marks and Spencerplc

Luc Vandevelde

Non-Executive Director

Founder and Chairman ofChange Capital Partners LLP Former Chairman of theCarrefour Group and Mark andSpencer

Philip Bowman

Non-Executive Director

Independent Director of FerrovialS.A Former Chief Executive of Smiths Group plc and Director of Burberry Group

Alain Bejjani

Chief Executive Officer of Majid Al FuttaimHolding

Former Executive Vice-Chairmanof the Investment Development Authority of Lebanon

33