INVESTOR PRESENTATION February 2019
CONTENTS TABLE OF CONTENTS Majid Al Futtaim FY 2018 Performance Update Appendix ▪ Majid Al Futtaim Group Overview USD / AED EXCHANGE RATE OF 3.6725 IS USED THROUGHOUT THE PRESENTATION 2 2
WE ARE NAVIGATING A CHALLENGING MARKET ENVIRONMENT Retail Landscape Sector Trends Evolving Consumer Behavior Intensifying Competition Substitution Effect ➢ Greater emphasis on personalized ➢ Value migrating from brick-and- ➢ Stores will transition to places that mortar to e-commerce tell stories through experiences services and experiences ➢ Hyper-connected consumer ➢ Increased Automation in Last Mile ➢ Disruptive technology such as redefining value Delivery IOT, AI, Augmented Reality. Macro Trends Oil Price Volatility Global Trade Wars Egyptian economy improving Geopolitical shifts across the ME Stronger USD Fiscal Reforms across GCC 3
WHILE REMAINING COMMITTED TO OUR STRATEGIC PRIORITIES Expand to be leaders Maintain leadership in adjacent/core in our core countries geographies Long Term Strategy Our aspiration is tobecome a regionallyfocusedlifestyleconglomerate …with a stellar internationalreputation Expand our presence in Protect our leadership Egypt and Saudi Arabia, position in the UAE driven by our shopping 1 2 malls business signature Top notch customer talent and Grow at scale at least Build a foundation experience capabilities one adjacent position in Africa Creating great moments business Brand & Human Customer for everyone, everyday Capital Experience Seamless andIntegratedOmnichannel Offering Evaluate business Expand in additional opportunities in adjacent African countries, businesses primarily with Carrefour Customer Digital Intelligence 4
WITH THE RIGHT ENABLERS AND MINDSET THE ‘MAF WAY’ OF OPERATIONAL EXCELLENCE Create an Adopt a Signature Execute Be a exceptional “ founder’s great Customer flawlessly pioneer people mentality moments environment Experience 1 2 3 4 for everyone, everyday Top Notch ” Talent and Capabilities Enablers A LEAN AND AGILE APPROACH Cost & Balance Procurement and Financial Discipline Capability Building Sheet Optimization Supply Chain in Investments 5
SUMMARY OF MAJID AL FUTTAIM’S FY 2018 PERFORMANCE RESILIENT FINANCIAL PERFORMANCE DELIVERED IN FY 2018 Revenue EBITDA Assets +7% Vs PY to: +9% Vs PY to: +2% Vs PY to: USD 9.4bn USD 1.3bn USD 16.4bn STABILITY AND STRENGTH THROUGH DIVERSIFICATION Geographical Split – 31 December 2018 Segmental Split – 31 December 2018 By Revenue By EBITDA By Revenue By EBITDA Oman Others ¹ Ventures 5% Others ¹ Properties Saudi Ventures 17% 7% 7% 13% 2% 7% Oman Qatar UAE 5% 5% 50% Retail Saudi 31% UAE Bahrain Properties 9% 66% 8% 65% Qatar 7% Egypt Egypt Bahrain Retail 6% 5% 7% 81% ¹ OTHERS INCLUDES KUWAIT, JORDAN, PAKISTAN, LEBANON, IRAQ, GEORGIA, ARMENIA, KENYA 6
FY 2018 PERFORMANCE: MAJID AL FUTTAIM PROPERTIES Operational Highlights Revenue EBITDA (USDmn) (USDmn) Extended our network of community malls with the opening of My City Centre Al Dhait 1,264 1,254 in UAE and My City Centre Sur and 800 814 City Centre Suhar in Oman Recognized by the GRESB with a FY 2017 FY 2018 FY 2017 FY 2018 ‘Green Star’ Rating for the 5 th year in a row 95% Malls avgoccupancy 1 Grew our hotel portfolio with the opening of Aloft City Centre Deira 4% Footfall y-o-y Work is continuing on City Centre Rent to sales 13% Almaza in Cairo Egypt and My City Centre Masdar, in Abu Dhabi due to 75% Hotels avgoccupancy open in 2019. REVPAR change y-o-y -13% 1 EXCLUDING MALL OF EGYPT OCCUPANCY STANDS AT 96% GRESB: GLOBAL REAL ESTATE SUSTAINABILITY BENCHMARKS 7
FY 2018 PERFORMANCE: MAJID AL FUTTAIM RETAIL Revenue EBITDA Operational Highlights (USDmn) (USDmn) Announced a strategic partnership with the Ministry of Investment 7,049 7,622 and International Cooperation in 383 Egypt 330 Inaugurated Carrefour regional FY 2017 FY 2018 FY 2017 FY 2018 distribution center Sales (LFL) -4% launched Carrefournow.com express delivery service Hypermarket openings 10 Expanded our footprint in Kenya Supermarket openings 23 Entered into further strategic Total stores 264 partnerships in last-mile delivery 8
FY 2018 PERFORMANCE: MAJID AL FUTTAIM VENTURES Revenue EBITDA Operational Highlights (USDmn) (USDmn) Inaugurated the first cinema multiplex in Saudi Arabia, following the lifting of a 651 577 40 year ban 87 70 Further expanded our cinema network across the region with additional FY 2017 FY 2018 FY 2017 FY 2018 openings in Egypt, Bahrain and Kuwait Expanded the portfolio of L&E with additional openings Cinema screens added 52 Total cinema screens 353 New L&E venues 5 9
GROUP DEBT PROFILE (1/2) Debt Maturity Profile (USD mn) All Senior Unsecured financing obligations rank pari passu among themselves Capital Markets Bank Debt Majid Al Futtaim Group’s 2000 31 Dec Balanced Funding Profile (USD bn) 2018 Notes 1600 Primarily Senior Unsecured Majid Al Futtaim Holding 3.0 obligations at Holding level 1200 Primarily Senior Unsecured 1,033 Majid Al Futtaim Properties 0.5 obligations at Properties level 800 280 Primarily project finance with 97 Others 0.3 limited recourse to borrower 400 800 500 500 Total 3.8 36 55 64 437 0 2019 2020 2021 2022 2023 2024 2025+ Majid Al Futtaim Holding Majid Al Futtaim Properties Cross guarantees $400mn $2.5bn 4.6 yrs Issued new perp to Refinanced $1.6bn existing bank loan $2.4bn replace 2013 NC5 facilities + added $0.9bn of new inaugural hybrid Weighted Average Undrawn Available commitments Debt Life Committed Lines 1 USD 0.9BN EQUITY HYBRIDS NOT TAKEN INTO ACCOUNT IN DEBT AND AVERAGE DEBT LIFE CALCULATIONS 10
GROUP DEBT PROFILE (2/2) Strong Leverage Metrics Facilities & liquidity 4,000 5 3,418 Debt Capital Markets Issuances % $bn 3,500 4 Bonds 21% 1.3 2,817 3,000 2,612 2,517 Sukuk 8% 0.5 2,500 2,179 3 Total Debt Capital Markets Issuances 29% 1.8 2.7x 2,000 2.4x 2.4x Bank Facilities % $bn 2.3x 2.2x 2 1,500 1,253 1,145 1,152 Drawn 32% 2.0 1,044 977 1,000 Undrawn 39% 2.4 1 Total 71% 4.4 500 Total Bank Commitments & Debt Capital Markets 100% 6.2 0 0 Less Drawn (3.8) 2014 2015 2016 2017 2018 EBITDA Net Debt (USD mn) Net Debt / EBITDA (times) Plus Cash 0.4 Total Liquidity 2.8 31 Dec 31 Dec Funding Risk Management Framework Policy/Covenant 2017 2018 Liquidity Coverage - Months 18 27 49 31 Dec 31 Dec Interest Rate Risk - Duration in Years 0.5-3.5 2.3 2.3 2017 2018 Investment grade credit ratings EBITDA Interest Cover (x) 1 >2.0 >10 8x Fitch BBB BBB EBITDA from encumbered assets as % of total Standard & Poor’s BBB BBB EBITDA 4% 4% Secured debt as a percentage of Gross Debt 6% 8% 1 EBITDA INTEREST COVER MEANS EBITDA OVER NET FINANCE CHARGES NET/DEBT EBITDA ADJUSTED AS PER S&P METHODOLOGY AT ~ 4.0X 11
MEASURED GROWTH & STEADY DEVELOPMENT PIPELINE TRUE TO OUR COMMITMENT TO OUR CREDIT RATING, OUR TOP-DOWN CAPITAL ALLOCATION APPROACH IS OF THE “BBB” METRICS AND WITH AN EYE ON PRUDENT FINANCIAL MANAGED WITHIN THE DEBT CAPACITY MANAGEMENT. Mall Development Pipeline 2018 2019 2020 2021 2022 2023 onwards City Centre Suhar Oman Community Mall (Suhar) GLA: 40,000 M 2 My City Centre Masdar UAE Community Mall (Abu Dhabi) GLA: 18,725 M 2 City Centre Almaza EGYPT Regional Mall (Cairo) GLA: 103,000 M 2 City Centre Al Zahia UAE Super Regional Mall (Sharjah) GLA: 136,000 M 2 Mall of Oman Oman Super Regional Mall (Muscat, Oman) GLA: 145,000 M 2 City Centre Ishbiliyah KSA Super Regional Mall (East Riyadh) GLA: 114,000 M 2 Mall of Saudi KSA Super Regional Mall (North Riyadh) GLA: 321,000 M 2 City Centre Al Jazira UAE Regional Mall (Abu Dhabi) GLA: 80,500 M 2 PLANNED CONSTRUCTION START PLANNED OPENING 12
In Summary ➢ Strong balance sheet ➢ Stable cash flow generation ➢ Best in class corporate governance A strong foundation ➢ Established track record, reputation & brand ➢ Diversified sources of funding ------------------------------------------------------------------------------------------------------------------------ ➢ Maintaining strong UAE position Positioned to seize opportunities ➢ Expanding in growth markets amidst a volatile environment ➢ Business performance management ------------------------------------------------------------------------------------------------------------------------ ➢ Top down capital allocation Appropriately managing ➢ Stress testing the risks ➢ Country risk management ➢ Defined polices & procedures 13 13
CONTENTS TABLE OF CONTENTS Majid Al Futtaim FY 2018 Performance Update Appendix ▪ Majid Al Futtaim Group Overview 14 14
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