October 2018 Private & Confidential Disclaimer This - - PowerPoint PPT Presentation

Private & Confidential

October 2018

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Disclaimer

This presentation contains information based on forecasts and roll outs, all statements contained in this presentation are made without responsibility on the part of Manazel Real Estate (MRE) and its subsidiaries (including directors, officers and employees) or its advisors. All statements made in this presentation are based on expectation and are subject to a number of uncertainties and risks that could differ materially from any expected outcome expressed or implied in these statements. None of the statements contained in this presentation is to be relied upon as a statement or representation of fact. All parties must satisfy themselves as to the correctness of each of the statements contained in this presentation. Manazel Real Estate (MRE) and its subsidiaries (including directors, officers and employees) or its advisors do not have any authority to make or give, any representation or warrantyor guarantee, whatsoever in relation to this presentation. This presentation may not be copied, distributed, transmitted, reproduced or stored, in whole or in part, in any form or medium without the express permission of Manazel Real Estate PJSC.

Building Communities Together

Manazel At-a-Glance

4

Introduction to Manazel

A unique fully integrated real estate developer in the UAE with a focus on the underserved middle class in the UAE High Quality Diversified Properties

Development Projects Investment Portfolio

Al Reef Retail Area

Cooling, and Facilities and Development Management

2,000+

Units in the Pipeline* Invest Portfolio Valuation

Affordable / Underserved / Local Population 5,000 +

Residential units delivered

> 130,000 Sqm.

Retail GLA Issued Capital

$715m

$236m Revenue | $62m EBITDA

FY 2017

Market Cap

$330mn

Over 7500 Units delivered across 8 Projects since inception

UAE & MENA

5  Currently managing all of Manazel Real Estate’s projects by offering a multitude of facilities management services serving all classes of the real estate sector with customers across Abu Dhabi.  Efficient cooling solutions for large commercial and residential developments  Plants are currently operating at 50% capacity with the

• ption to scale-up without any incremental CAPEX

 Large, landmark projects developed across Abu Dhabi, the capital of UAE  Niche market targeting affordable housing  Integrating development business to ensure steady cash flow and controlled capex

 Portfolio of strategically located properties with high cumulative gross rental yield of  Utilization across key retail / mall assets expected to grow significantly  Expansion of assets across education and healthcare

Business Overview

Strategically aligned business verticals capture opportunities across the real estate value chain

Retail and Commercial Assets Build to Lease Residential Assets Manazel Healthcare Manazel Education

Investment Properties Development District Cooling Facility Management

 Providing comprehensive administrative services covering all aspects of real estate consultancy, design and implementation of related procedures including property sales services, resale, leasing and management

Property Management

 Government sponsored housing development scheme  Manazel’s involvement limited to development of allotted land plots for landed (villa) style housing for the beneficiary families

Others

Development Management Fee Dari Initiative

6 6

Evolution and Key Milestones

Incorporation

• f Manazel

Real Estate

Development Execution / Recurring Revenue Creation Phase

 Delivering launched projects  Raised equity through market listing  Expanding into new segments like education, healthcare, etc  Entering into strategic partnerships for future development  Reached Gross Asset size of ~AED 5bn  Launch of Al Reef 1 Project, Dunes Village, and Prestige Towers  Launch of Al Reef Cooling and Capital Cooling project  Completion of Dunes Village  Hand over of the first phase

• f the Al Reef 1 Villas

 Launch of Capital Mall  Hand over of all the villas in Al Reef 1  Handover of Al Reef Downtown  Completion of Al Reef Cooling and Capital Cooling  Delivery of Capital Mall  Listed on ADX Secondary Market  Launch of Al Reef 2  Launch of Ghantoot Waterfront  Participated in the government’s Dari initiative  Creation of Manazel Education  BOT for Manazel Medical City

Initial Years

 Launching new projects and commencing development  Focus on creating a brand name and a niche for itself

Recurring Revenue Asset Delivery / Growth Phase

 Delivery of existing projects providing recurring cash flows for future growth  Low risk high returns approach: De – risked development strategy  Focus on operational efficiency, returns & cash flow optimization

Transformed the business over the years from a pure developer to a well diversified company with a strong focus on recurring revenue

Policy, Governance and Strategy

8 8

Strategy Overview

Growing Recurring Revenues De-Risked Development Strategy Access to Diversified Sources

• f Funding

 Build on the existing investment portfolio & services businesses  Develop the portfolio using “Build Operate Transfer” model  Further diversify recurring revenue sources by undertaking minimal capex  Co-Development and Preselling is the key strategy in development  Landlord to be paid on completion of the Co- Development Project  Capital commitment only after the Pre-selling threshold is reached  Diversification of capital structure to optimise investments  Strong relations with local & regional banks to support growth  Conserve cash and enhance liquidity to capitalise on the market opportunities

1 2 3

Ensures long term cash flow visibility while maintaining growth and conserving cash

9

Growth Drivers – Recurring Revenues

9

 Expand Property Management and Facility Management operations to offer additional services (house

maid services, parcel services etc.,) and catering to third party projects

 Entry of cinemas and new retail operators coupled with new developments in the surrounding areas

(defense colony) would lead to increased customer footfall in the Capital mall

 Increase capacity utilization of capital cooling by tapping into the new hospital and mall development

Build on the existing investment portfolio and services businesses A

Deploy capital to develop an asset with a long term recurring revenue potential

 Leveraging on our expertise of developing residential assets, enter into “Build to Lease” segment  Al Reef 1 and Al reef 2 schools being developed with a long term operator agreement - revenue being

generated through land lease and asset rental

Further diversify recurring revenue income stream – minimal capex C

Schools

 Develop long term revenue generating asset with minimal capital deployment

 Manazel healthcare project agreement finalized to develop hospital  Al Reef commercial plot leased under BOT agreement for clinic development

Develop the portfolio using “Build Operate Transfer (BOT)” Model – Zero capex B

Manazel Healthcare Commercial Plots Leased Residential Assets

Increased focus on developing recurring revenue generating streams with minimal investment

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Credit Highlights: Future De-Risked Development Strategy

Manazel Strategy Key Advantages Develop Pre-Sell Acquire Land

 Leverage existing land bank (And)  Co-Development agreement  Minimal capital required to purchase the land  Accommodates both build to sell and build to lease models  Total contractor cost is capped  Always in the money if directly constructing on behalf of land

• wner

 Flexibility to time the project completion to

• ptimise

unit sales  Enough cash flows to pay the contractor  Ensure pre-selling benchmark of 20-30% is reached Lumpsum turnkey contract with Main Contractor (Or)  Manage construction on behalf of the Land owner

A B C

Co-development, pre-selling and lump sum turnkey contracts to ensure minimal cash flow risks

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Organizational Structure

* An MOA exists between Tatweer and Manazel giving Manazel rights to operate the companies on behalf of the shareholders of Tatweer, both of which are Directors on the Board of Manazel

Centralized treasury function – cash pooling across the group’s subsidiaries with all debt at the Manazel Real Estate level

Manazel Real Estate PJSC (Mnz)

Al Reef Capital Real Estate LLC Capital Cooling LLC Manazel International Capital UAE LLC Manazel International General Contracting LLC Manazel Malls LLC Edara Management LLC Census International LLC (Census) Al Reef Cooling LLC The Outlet Capital Mall LLC Manazel Capital Real Estate LLC Manazel Healthcare LLC Al Manzel Real Estate LLC Manazel Hospitality LLC The Guard Public Security Guarding Service LLC

Tatweer Capital LLC* (Twr)

Mohamed Mehanna Betti Hazim Alqubaisi (50%) Khalid Abdulla Khalifa Deemas Alsuwaidi (50%) Manazel Specialists Real Estate LLC

Ownership Mnz –51% Twr –49% * An MOA exists between Tatweer and Manazel giving Manazel rights to operate the companies on behalf of the shareholders of Tatweer, both of which are Directors on the Board of Manazel Ownership Mnz –99% Twr –1% Ownership Mnz –99% Twr –1% Ownership Mnz –99% Twr –1% Ownership Mnz –99% Twr –1% Ownership Mnz –100% Ownership Mnz –99% Twr –1% Ownership Mnz –99% Twr –1% Ownership Mnz –99% Twr –1% Ownership Mnz –99% Twr –1% Ownership Mnz –60% Twr –40% Ownership Mnz –99% Twr –1% Ownership Mnz –99% Twr –1% Ownership Mnz –100% Ownership Census –100%

Companies related to recurring revenue streams Companies related to development revenue streams

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Leadership – Board of Directors & Senior Management

 Steered by H.E. Mohamed M. Al Qubaisi, the Board of Directors is comprised of experienced professionals with a diversity of experience and knowledge  The Board is responsible for future business strategy  The members meet on a periodic basis to review the implementation of the business strategy and to compare it with the ever- changing external business environment  Business supported by Corporate Governance Committees including Executive and Risk Management, Nominations & Remunerations, and Audit committees

Mohamed M. Al Qubaisi Chairman Khalid Deemas Al Suwaidi Board Member Naser Al Mur Al Zaabi Vice Chairman Mohamed Thaloob Al Derei Board Member Khalid Ali Mansoori Board Member Waleid Gamal Eldien Chief Investment & Commercial Officer Balaji Prasad Chief Financial Officer Yaqoob Al Doseri Chief Executive Officer

Amal Ghani Chief Business Support Officer Amal Hasan Abu Shallakh Chief Projects & Government Communications Officer Masood Al Hammadi GM for Census Mohamed Ali Elsherbini Head of Internal Audit and QMS Management Representative Saeed Al Khazraji General Manager

• f Manazel

Specialties Fawaz Al Ameri General Manager

• f Manazel Malls

Khalid Al Falasi Chief Operating Officer Asef Nabil Mustafa Al-Barghothi Head of Performance Enhancement and Quality Assurance

Management Board of Directors Experienced Board Members having access to Abu Dhabi leadership; Seasoned Management Team With Unparalleled Industry Experience

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Our Core Values

Commitment to Quality Transparency We serve as dedicated land administrators, creating lasting value through our communities and investment properties to ensure a prosperous legacy for generations to come. We remain on par with leading developers across the region by adopting international best practices and working with likeminded partners. We aim to weave vibrant environments that balance security, comfort and convenience where people can thrive in self-sufficient communities. By acting as an equal opportunity employer, we create job opportunities that contribute to the social and economic development of the UAE and support nationals working in the private sector. To succeed in creating sustainable communities, we invest in and manage assets that adhere to the highest standards

• f quality and service.

Our corporate culture is built

• n the pillars of ethics, honesty

and openness in everything we do.

14 14

Supportive Recent Developments

Impact on Manazel: Potentially increase demand for homes among the local population In recent attempts to spur growth in the Property Development Industry, an AED 50bn stimulus package has been declared by the UAE government that is expected to ease business in the area and allow for a boost in industry supply factors

1

Impact on Manazel: Scope to tap into a new segment of customers New Residency Regulations, allowing expat to be granted 10 year visas and own 100% of businesses, are expected to increase demand for residency units as well as office units

2

Impact on Manazel: Manazel has the resilience / optionality to wait and watch given its unique operating model Real Estate prices are currently sluggish, with rental prices of residential and commercial properties seeing a 10% drop in the first quarter of 2018. However, with recent stimuli packages, the industry is expected to bounce back and see profitable growth in the following year

3

“Abu Dhabi’s AED 50 billion economic stimulus package will lead to initiatives that will propel the real estate

• market. The new government economic stimulus package has positive implications for the capital with new

initiatives directly impacting the real estate market and as with previous government stimuli should lead to an upswing in investment” Peter Stebbings, National Director and Head of Abu Dhabi, JLL, July 2018 Government remains committed to provide stimulus to the economy which will benefit Manazel

Distinguishing Strengths

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Key Highlights

Integrated Business Model Supporting Increased Recurring Revenue Strategic Access To Land Development Track Record Future De-Risked Development Strategy Competitive Position Against Other Operators in the Market Leadership / Corporate Governance

 Projects delivered on / ahead of schedule  Government housing initiatives require delivery on time (and within budget)  Servicing the real estate sector across the value chain  Focus on recurring revenue streams; Service-provider model  Cater to a niche market segment  Nimble and agile; Adapt to evolving landscape  Strategic support from the government  Longstanding leadership with in-depth experience

• f the industry

 A diverse and independent board of savvy leaders  Co-development model ensures minimal capital investment  Strategic focus on industry-leading management services to increase share of recurring revenue pool  Supportive shareholder base with access to large, strategically located pockets of land

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Key Highlights: Development Track Record

Development Delivery Track Record Residential Development Delivery Track Record (Number of Units)

942 107 1,005 610 587 67 48 776 648 346 50 100

400 460 1,049 1,005 658 1,363 715 346 450 560 2009 2010 2011 2012 2013 2014 2018E 2019F Dune Village Al Reef Villas Al Reef Downtown Dari Al Reef 2

Strong execution track record across segments

2010 2012 2013 2014 2016 2018 2009

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Key Highlights: Integrated Model Supporting Recurring Revenue

 Expand Property Management and Facility Management operations to offer additional services (house

maid services, parcel services etc.,) and catering to third party projects

 Entry of cinemas and new retail operators coupled with new developments in the surrounding areas

(defense colony) would lead to increased customer footfall in the Capital mall

 Increase capacity utilization of capital cooling by tapping into the new hospital and mall development

Build on the existing investment portfolio and services businesses A

Deploy capital to develop an asset with a long term recurring revenue potential

 Leveraging on our expertise of developing residential assets, enter into “Build to Lease” segment  Al Reef 1 and Al reef 2 schools being developed with a long term operator agreement - revenue being

generated through land lease and asset rental

Further diversify recurring revenue income stream – minimal capex C

Schools

 Develop long term revenue generating asset with minimal capital deployment

 Manazel healthcare project agreement finalized to develop hospital  Al Reef commercial plot leased under BOT agreement for clinic development

Develop the portfolio using “Build Operate Transfer (BOT)” Model – Zero capex B

Manazel Healthcare Commercial Plots Leased Residential Assets

Increased focus on developing recurring revenue generating streams with minimal investment

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Key Highlights: Competitive Position Against Peers in the Market

Manazel Real Estate Other Real Estate Players in UAE

Stable Business Profile  Business profile benefitting from a good mix of development, recurring, and services revenue  Presence in multiple segments provides diversity (healthcare, schools, development management)  Only bigger players in the market have similar business mix; other players primarily focused on one category  Most players have lower segmental diversification (like others don’t typically do development management) Integrated Business Model  Customer engagement goes beyond development – feeds into ancillary / stable revenue businesses  Most players are not involved with the project post the handover / delivery – greater development risk Scale  Right size enables us to be “light weight” and “agile”, providing us flexibility to react to market conditions quickly  Other players need to continuously undertake projects irrespective

• f the market conditions to constantly feed the cash flows

Unique Market Positioning  Focused on the underserved affordable segment - stable customer base of the local population  With UAE Nationals now being the top investor in the UAE market, this strategy bodes well for Manazel  Almost all other players are primarily focused on expat population / international investors which are less stable in nature / prone to react to external shocks Safeguarded from FX Risks  Given the local population focus, FX movement does not change their appetite for local market investing  Expats / foreign investors tend to divert funds outside UAE say in case

• f a strengthening dollar

Differentiated Development Strategy  Development activity primarily revolves around plot / villa sales or low rise buildings  Provides capex flexibility as the entire structure need not be completed for handover  Easier to build structures – project gets completed faster plus is less complex  Other primarily focused on high rise buildings – can only handover the project upon completion and not in phases – less capex flexibility  Complex projects at times leading to cost over runs or delays Prudent Land Bank Strategy  All existing land bank bought from equity  Using our land bank to create recurring revenue assets  Access / relationship with strong network of third parties having large land banks  Co development model ensures regular development while minimizing cash flow impact on Manazel  Only bigger players have access to cheap / free land bank primarily due to their government ownership – however, now even they are finding it difficult to access cheap land  Others use land bank to build and sell  Others have to invest in expensive land bank upfront to maintain their development activity Access to Leadership  Well connected Board Members provides easy access to Abu Dhabi leadership / key decision makers  Only bigger players enjoy similar access in the market owing to government ownership

Our resilient business profile provides us with a strong competitive advantage

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Key Highlights: Strategic Access To Land

Current Land Bank (Manazel)

Existing land bank of Manazel

Name Type Development Plan Revenue Type Ghantoot Waterfront Residential Co-Development Development Dubai Silicon Oasis Residential Co-Development Recurring Yas Tower Residential Co-Development Recurring JVT - twin towers Residential Co-Development Recurring Dubai Maritime Tower Residential Co-Development Recurring International Markets – KSA Residential Co-Development Development International Markets – Jordan Residential Land to be Sold Land to be Sold Healthcare - Hospital Healthcare BOT model Recurring Healthcare – Residential Tower Healthcare / Residential PROPCO/OPCO Model Recurring Al Reef 1 – Schools Commercial PROPCO/OPCO Model Recurring Al Reef 2 - School Commercial PROPCO/OPCO Model Recurring MBZ – Phase 3 Commercial To be finalized To be finalized

 Primarily our existing land bank is located in Abu Dhabi, apart from

• ne plot of land in Amman (Jordan)

 Part of the land bank will be used to develop new projects as highlighted in the table alongside  Existing land bank is sufficient to meet our requirements for the next few years – no new land bank purchases envisaged in the near term Strategic relationship with key shareholders and other large land owners providing access to a large land bank across UAE and GCC

Overview of Key Assets / Performance Track-record

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Asset Overview: Capital Mall

 Consists of three stories of premium retail space  Easy accessibility and parking space for 3,000 vehicles  Houses the largest ‘Lulu’ hypermarket in GCC  Entered into a strategic partnership with McARTHUR + COMPANY to lease and manage the mall Manazel’s first retail project

 Well located between E30 and E22 highway in Abu Dhabi  Easy access for the target population of ~ 1mn value conscious consumers within a 20 minute radius  Etihad accommodation (Mazyad) and Villas in Mohammed Bin Zayed City (MBZC) are already occupied  An Army Officers housing colony is coming up next to the Mall (expected to be completed by 2020)  From a long term perspective, further development of MBZC and potentially the start

• f the development of Madinat Zayed area will boost the population of nearby areas

 Primary trade area includes a broad mix of nationalities / income levels

Year of Completion: 2013 Units available: 296 Total Area: 60,158 Sqm. Leased: 57% (currently)* - additional 25% under active negotiation

Capital Mall / Prestige Tower

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Asset Overview: Prestige Twin Towers

 Year of Completion: 2010  Total Area: 55,000 Sqm.  Leased: ~90% (2017)

 20-floors twin building structure with leasable office space of over 55,000 Sqm.  Proximity to Dubai and ample parking space act as key differentiating factors as is reflected in high occupancy

Prestige Twin Towers, Abu Dhabi Diversified tenant mix with high occupancy; Mature asset with stable cash flows Company’s first commercial project Top Tenant Lease Expiry (% Revenue)

 Out of the two towers, P 16 is fully occupied by Abu Dhabi Food Control Authority (ADFCA)  Company is under a long term lease with the existing contract expiring in 2022 only – provides cash flow visibility  ADFCA has spent considerable sum in fitting out the tower as per its needs  Other factors like ample parking space and proximity to Dubai also helps us in retaining this key tenant 0.8% 2.9% 2.0% 94.3% 2018 2019 2020 2021 2022

 Prestige 16 is fully leased out to a government entity (Abu Dhabi Food Control Authority) under a long term contract – while this tower has been sold by Manazel to multiple investors, the lease is managed by Manazel on their behalf  Manazel collects the revenue and passes it on to the investors after deducting its share  Prestige 17 is partially owned by Manazel – we only manage

• wned units

 Houses Manazel and some of its subsidiaries, as well  Currently 89% occupied, we are in advance talks with companies for leasing out additional 6% area this year

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Property Development - Dari National Housing Program

Salient Points Revenue (AED mn)

 Established to meet the high demand for UAE Nationals housing

• pportunities, Dari allows nationals to

utilize AED 2 million housing grant from the Abu Dhabi Government

 Well received with ~600 UAE nationals registered currently  Second phase launched in 2017 includes all existing ten models redesigned to suit smaller spaces  Average price: AED 2mn for normal and AED 2.5mn for large Dari National Housing Program, Abu Dhabi

 Manazel is one of the few approved developers by the government under the Dari initiative in Abu Dhabi  Underserved market - bigger developers are less keen in actively participating given the villas are spread out instead of being in one location – provides greater participation opportunity for players like us  We initially participated with a pilot program of 15 villas – helped us understand the process and challenges involved; process is now streamlined enabling us to undertake higher number every year  Apart from the fixed price paid by the government, additions to the Villa by the owner over and above the approved plan leads to higher cash flows

100 200 200 200 2018E 2019F 2020F 2021F

Dari profits are akin to a recurring cash flow for Manazel given the strategic nature of the project In a Turn-key operation Dari supervises all aspects of the project until handover

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Delivered Projects

Al Reef Villas, Abu Dhabi  Year of Completion: 2014  Units available: 2,376  Total Area: 567,285 Sqm.

Amongst first integrated residential communities in Abu Dhabi:  Comprised of 2,376 villas and townhouses with two, three and four bedroom options  Designed to accommodate 16,700 residents  All villas handed over to investors in phases by 2014

Al Reef Downtown, Abu Dhabi  Year of Completion: 2014  Units available: 1,818  Total Area: 279,349 Sqm.

Part of the overall Reef community:  Comprised of 46 apartment buildings with 1,818 apartments in a mix of studio, one, two and three bedroom units  Al Reef Retail is also part of this complex  Handed over to investors in phases by 2014

Dunes Village, Dubai  Year of Completion: 2009  Units available: 942  Total Area: 94,758 Sqm.

Company’s first project in Dubai:  Features 19 five-story residential buildings  Comprised of 942 stylish and spacious studios, one and two bedroom apartments.  Handed over to investors in 2009

High quality development delivered on time and within budget

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Ongoing Projects

Project delivery will result in substantial cash flows to Manazel over the next 6 – 12 months Situated between Abu Dhabi and Dubai Ghantoot Waterfront, Abu Dhabi

 Year of Completion: 2021  Units available: 671 (plots)  Total Area: 1.4mn Sqm.  One of the biggest real estate projects in the tourism sector in the country  Concept designs of the waterfront project consists of resort style villas (ocean view) with dedicated water front  Announced in February 2017, the project will utilize Manazel Specialists with the sale of the 671 land plots in phases  Signed bulk deal in June 2018 for ~10% of the plot value

Step 1 – Development Management

 Provide consultancy fee for the development / overall plan for the plot going forward  Non cyclical revenue not linked to development activity

Step 2 – Plot Sales

 Focus on developing and selling individual plots initially in a phased manner  Total of 671 plots to be sold over a period

• f 4 years

Step 3 – Villa Construction

 Offer villa construction services to the plot

• wners post

handover  Ensures extra revenue on the existing asset

Al Reef 2, Abu Dhabi

 Year of Completion: 2019  Units available: 860  Total Area: 440k Sqm.

Second phase of the highly successful Al Reef project

 Strategically located on the Abu Dhabi – Dubai highway, close to KIZAD and Khalifa Port  Will consist of 860, 2 & 3-bedroom villas, four community centers, retail facilities and a school  Has advanced facilities to ensure a clean and sustainable environment

Salient Points

 ~97% sold; handover ongoing – (all villas in almost full construction phase with final finishing being undertaken)  ~95% villas sold to UAE Nationals  Project was ~30% pre sold before construction began  Co development project – on the back of successful completion of this project, Manazel was awarded the Ghantoot Project  Delivered on time and within budget by the contractor (Fibrex) – fixed lumpsum contract with the contractor

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Management Services – Source of Recurring Revenue

Facility Management  Census International is a facilities management company currently managing all of Manazel’s projects by offering a multitude of services serving all classes of the real estate sector  Acquisition of Non-controlling stake in 2014 allowed Manazel to strengthen cash flows, improve operational efficiencies and increase profitability  A subsidiary of Census also offers “Guard Security” services to Manazel’s projects as well as to others  Acting as the in house facility management arm, Census gets access to all of Manazel’s developments thereby ensuring continuous and stable revenue streams  Census has three primary revenue streams: Services to House Owner’s Association (maintenance charges for common areas); Clients inside Community (charges on per unit basis for services availed by individual units); External projects (revenue from contracts with third parties) Property Management  Full service portfolio management company providing life cycle and comprehensive administrative services covering all aspects of real estate consultancy, design and implementation of related procedures  Also offers property sales services, resale, leasing and management  Acquisition of Non-controlling stake in 2014 allowed Manazel Specialists to pursue its long term strategy – allowed Manazel to strengthen cash flow, improve operational efficiencies and increase profitability  Acting as the in house property management arm, Manazel Specialists gets access to all of Manazel’s developments thereby ensuring continuous and stable revenue streams District Cooling - Capital Cooling and Al Reef Cooling Capital Cooling - As Capital Mall’s occupancy increases and the surrounding vacant land is developed (Medical City), the plant is expected to operate at its full Capacity  Caters to the Capital Mall and Prestige Towers currently; Sufficient capacity to service upcoming new projects;  Revenue has a fixed component (demand charge – increased considerably in 2018) as well as variable (consumption charge)  Monopoly position – no alternative to consumers Al Reef Cooling (Al Reef Downtown and Retail area only) - Mature asset providing stable long term cash flows  Fully utilized – running on 100% capacity  Revenue has a fixed component (demand charge – increased considerably in 2018) as well as variable (consumption charge)  Monopoly position – no alternative to consumers

Multiple sources of recurring revenue stream provide long term cash flow visibility

Financial Summary

29

Financial Overview Section

Robust financial performance; Improving margins, expanding asset base Margins higher for the business (US$m) Profit for the year (US$m)

235 202 203 205 236 48 63 67 70 87 21% 31% 33% 34% 37% 0% 10% 20% 30% 40% 50 100 150 200 250 2013 2014 2015 2016 2017 Revenue Gross Profit Gross Margin (%) 52 42 54 57 60 10 20 30 40 50 60 70 2013 2014 2015 2016 2017

Bank balances and cash (US$m)

19 7 4 49 36 10 20 30 40 50 60 2013 2014 2015 2016 2017

Development work-in-progress (US$m)

80 55 72 52 47 10 20 30 40 50 60 70 80 90 2013 2014 2015 2016 2017

Total assets and equity (US$m)

1,041 994 1,154 1,288 1,363 611 552 712 768 572 200 400 600 800 1,000 1,200 1,400 1,600 2013 2014 2015 2016 2017 Total assets Total equity

30

Financial Overview Section

Robust financial performance; Strong balance sheet Consolidated income statement (US$m) Consolidated statement of financial position (US$m)

72 73 113 142 22 21 34 63 12 9 15 36 20 40 60 80 100 120 140 160 H1/15 H1/16 H1/17 H1/18 Revenue Gross profit Profit for the period 1,056 1,177 1,316 1,385 493 456 561 560 563 721 755 825 200 400 600 800 1,000 1,200 1,400 1,600 H1/15 H1/16 H1/17 H1/18 Total assets Total liabilities Total equity

[ - ] (US$m)

72 73 113 142 21 17 25 48 12 9 15 36 20 40 60 80 100 120 140 160 H1/15 H1/16 H1/17 H1/18 Revenues EBITDA Net Profit

Total assets and shareholders equity (US$bn)

1.0 1.2 1.3 1.4 0.6 0.7 0.7 0.8 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 H1/15 H1/16 H1/17 H1/18 Total Assets Shareholders Equity

31 31

Government Receivables

Background

 As part of our development plan for Prestige Tower and Capital Mall, we also developed the infrastructure around the area like roads, etc  Government receivables pertain to the reimbursement of this infrastructure cost that we undertook  Total receivables of AED 560mn, out of which AED 70mn received earlier (outstanding AED 491mn

Government Agreement Recent Developments Expected Scenario

 Asset agreements signed under which these infrastructure assets were transferred to the government with the last

• ne being signed in 2017

 Since then the government has taken over the assets  In a meeting held with the government representatives around two weeks back, we were informed that the payment of this receivable will happen as part of the AED 50bn stimulus announced by the government  Post the discussions with the authorities, Manazel is expecting to receive AED 90mn soon.  Remaining receivables also expected to be paid at the earliest – option of receiving both cash and /

• r land; receipt of any land

will be based on a mutual agreement between the two parties  Not factored in the forecasts – will result in windfall gain Positive development on the receipt of government receivables – however, not factored in the model