Q4 & 2015 FY RESULTS PRESENTATION 15 February 2016 DISCLAIMER - - PowerPoint PPT Presentation

Q4 & 2015 FY RESULTS PRESENTATION

15 February 2016

DISCLAIMER

This disclaimer governs the use of this presentation. You must not rely on the information in the presentations and alternatively we recommend you to seek advice from an appropriately qualified professional. If you have any specific questions about any matter in this presentation you should consult an appropriately qualified professional. The statements made in this presentation are only forward thinking statements. Such statements are based on expectations and are subject to a number of risks and uncertainties that could differ materially from any expected

• utcome or results expressed or implied in these statements.

Without prejudice to the generality of the foregoing paragraph, we do not represent, warrant, undertake or guarantee that the information in the presentation is accurate or use of guidance in the presentation will lead to any particular outcome or result. We will not be liable to you in respect of any business losses, including without limitation loss of or damage to profits, income, revenue, use, production, anticipated savings, business, contracts, commercial opportunities reputation or goodwill. 2

CONTENTS

Section Page(s) Highlights 4-9 Asset Management 10-12 Development Management 13-16 Financial Review 17-21 Summary 22 Appendix 23-26 3

HIGHLIGHTS H.E. MOHAMED AL MUBARAK, CEO

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GROWTH IN RECURRING REVENUE NOI SET TO CONTINUE

5 700 1,010 1,505 1,600 2,200 2013FY 2014FY 2015FY 2016E 2020E

• 49% increase in gross profit from recurring revenues in 2015 to AED 1.5 billion
• 2016 guidance remains at AED 1.6 billion
• Target over 40% growth in NOI by 2020 through asset maturity and AED 3 billion investment plan
• 30% of investment plan committed to date

+40%

AED 3.0 BILLION IN DEVELOPMENT SALES IN 2015

• Strong sales over the course of the year
• No change to development strategy – focus on destinations
• Untapped segments of the market
• Launch cycle of c.1,500 units a year – subject to market

conditions

• 5.9 million sqm GFA across destinations

6

Land plots Launched projects New launches DM launches

GROSS DEBT TARGET ACHIEVED

7 13.8 9.1 6.0 31/12/13 31/12/14 31/12/15

• Significant refinancing and deleveraging efforts over last two years
• Gross debt now in line with debt policy, no further pay down expected

Interest expense (AEDm) 727 382 240 Average interest rate 5.9% 2.7% 3.2% Debt LTV ¹ 35%

¹ Debt LTV is based on gross debt at period end as a percentage of the value of investment properties less those under development and PPE Land & Buildings

FOCUS ON SHAREHOLDER RETURN

8 6 fils 7 fils 9 fils 10 fils 2012 2013 2014 2015 2016

• 2015 dividend recommendation of 10 fils per share, up 11%
• Progressive dividend over last four years, supported by growth and stabilization of recurring revenues
• From 2016, a formal dividend policy based on the cash flow performance of the business
• Commitment to shareholder returns

Introduce formal Dividend policy

OUTLOOK

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• Recurring revenue assets now fully in place
• 2020 recurring revenues growth target of AED 2.2 billion set and under way
• Untapped development opportunities exist – focus on destinations
• No further pay down of debt expected
• Dividend policy formalised

ASSET MANAGEMENT TALAL AL DHIYEBI, CHIEF DEVELOPMENT OFFICER

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OPERATIONAL HIGHLIGHTS

Retail – Yas Mall 18m footfall in 2015, ahead of projections 361 units trading today representing 96% trading occupancy Residential 98% occupancy, ahead

• f market average

Continued demand for quality residential Bulk deals represent

• ne third of all leases

Office 95% leased occupancy up 5% as at 31 Dec 15 (31 Dec 14: 91%) 13% increase in GLA to 204k GLA following Daman House acquisition 75% portfolio leased to Government related entities 4 years average remaining lease Hotels 79% average occupancy during 2015 in line with 2014 Hotel portfolio continues to

• utperform the AD

market occupancy 11

TARGET 40% GROWTH IN NOI BY 2020

• Achieved by maturity of existing assets and investment plan
• AED 3 bn investment plan
• Multi asset class investment
• Develop and acquire assets that meet internal hurdle rates and criteria
• 30% committed to date – AED 90m NOI once fully stabilised:
• Office – Daman House acquisition, contributing to NOI from purchase date
• Long term, 10 year lease to single, GRE tenant with build in escalations
• 8% average yield over contract
• Cost saving synergies as brought into existing portfolio
• Retail – Al Jimi Mall – 40% expansion on current GLA and renovation of existing mall
• Schools – Al Mamoura School – up to 1,800 new school seats, seventh Aldar Academies school

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DEVELOPMENT MANAGEMENT TALAL AL DHIYEBI, CHIEF DEVELOPMENT OFFICER

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DEVELOPMENT HIGHLIGHTS

AED 3 billion development sales across: Development

• AED 2.1 billion sales value sold during 2015
• AED 2.0 billion across over 700 off-plan unit sales
• AED 100 million on 1 land plot
• Q4 sales of AED 300 million across over 150 units at Meera and Mayan
• 73% sold across all units as at 31 December 2015

Development management

• AED 900 million in sales at West Yas during 2015, construction contract awarded

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REAL ESTATE LAW

• Create a more attractive real estate market in Abu Dhabi that will widen our investor base
• Lead to a more mature real estate market
• Key changes
• Increased transparency
• Escrow
• Strata title
• Real estate register
• Law will impact all project types – new, launched and completed

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DEVELOPMENT OUTLOOK

• 1,900 units launched since mid 2014 across 6 developments
• Launch cycle of 1,500 units a year – subject to market conditions
• Opportunities exist – untapped segments of the market
• Development strategy focused on destinations
• Fully owned land
• Enhance existing assets
• Real demand
• 5.9 million sqm GFA approval
• Basic infrastructure in place

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FINANCIAL REVIEW GREG FEWER, CFO

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PROFIT & LOSS

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AED millions Q4 2015 Q4 2014 2015 FY 2014 FY Revenues 1,125 1,270 4,586 6,551 Direct costs (558) (778) (2,380) (5,033) Gross profit 567 492 2,206 1,518

Gross profit Margin 50% 39% 48% 23%

SG&A expenses (118) (153) (380) (454) Depreciation and Amortization (57) (58) (210) (228) Gain on disposals 18 18 32 80 Share of profit from associates/ JVs 39 62 161 96 Other Income 11 86 694 831 Finance expense (58) (69) (240) (382) Finance income 35 23 98 111 Fair value gains/ (losses), provision/ reversal for impairments 311 317 198 694 Net Profit for the period 750 718 2,560 2,266 Attributable to: Owners of the Company 735 696 2,537 2,235 Non-controlling interests 15 22 23 31 Profit for the period 750 718 2,560 2,266 Basic and diluted earnings per share (fils) 0.09 0.09 0.32 0.28

AED 1.5 BN NOI SUPPORTED BY STRONG Q4

420 214 38 268 45 339 221 24 208 213 139 265

100 200 300 400 500

Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesses Development Management Property Development

Q4 Segmental Revenue Performance

Q4 2015 Q4 2014 AED Millions 331 86 11 52 30 220 88 3 35 42 56 103

100 200 300 400 500

Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesses Development Management Property Development

Q4 Segmental Gross Profit Performance

Q4 2015 Q4 2014 AED Millions

¹ Recurring revenues assets include Investment Properties, Hospitality & Leisure, Operative Villages, Schools (Aldar Academies) and Property & Facilities Management (PFM) (Khidmah) Q4 2015 recurring revenues excludes Pivot revenue of AED139m (Q4 2014 revenue: AED92m) Q4 2015 recurring revenue gross profit excludes Pivot gross profit of AED33m (Q4 2014 gross profit: AED14m)

Q4 2015 recurring revenues of AED801 million (Q4 2014: AED700 million) ¹ Q4 2015 recurring revenues gross profit of AED447 million (Q4 2014: AED332 million) ¹

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BALANCE SHEET

20 AED millions As at 31 Dec 2015 As at 31 Dec 2014 Remarks Property, plant and equipment 2,936 3,200 Investment properties 15,570 14,401

Movement reflects the net fair value gains on investment properties, transfer of leased units from inventory and Daman House acquisition

Development work in progress 2,745 2,871 Inventory 2,030 2,758 Receivables 5,535 9,619

Strong collection of Government of Abu Dhabi and land receovables

Cash 6,260 4,664 Other Assets 1,065 1,035 Total Assets 36,141 38,549 Equity 20,288 18,373 Debt 5,947 9,170

Deleveraging programme now complete, no further reduction in gross debt level expected

Payables, Advances and Other Liabilities 9,906 11,006 Total Liabilities and Equity 36,141 38,549

GOVERNMENT TRANSACTIONS

• AED 3.3 bn in total Government receivables collected in 2015
• AED 1.6 bn in relation to Central market and F1 race track
• AED 1.7 bn in relation to infrastructure recoverables during Q2 and Q3

¹ Cash flow timing depends on handover of related assets ² Excludes AED 0.3 bn of on-balance sheet infrastructure recoverables outstanding as at 31 December 2015 (31 Dec 14: AED 2.1 bn)

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AED millions Transaction (AED in millions) 2016 2017 Total H2 2014 - 2017 Sale of F1 Race Track 348 348 696 Sale of Al Raha Beach Land and Yas Island Assets¹ 950

• 950

Shams Infrastructure Reimbursement & Sale of Gate units ¹ 300

• 300

1,598 348 1,946

GROSS DEBT NOW IN LINE WITH POLICY

2015 highlights

• AED 1.1bn gross debt paid down during the quarter (2015FY: AED 3.1bn)
• Finance expense has fallen 37% following deleveraging and renegotiation of debt facilities in 2014
• AED 6.0bn gross debt as at 31 December 2015 now operating in line with debt policy
• Successful renegotiation of existing RCFs with extended maturities and additional facilities will provide

further flexibility to business Outlook

• No further significant pay down of debt expected
• As recurring business grows, debt capacity will grow
• Impact of real estate law on development business under consideration

22

DRIVING SHAREHOLDER RETURNS

• 2015 proposed dividend of 10 fils, 11% increase on 2014 dividend
• From 2016, a formalised dividend policy framework has been approved by the Board linked to underlying cash flow

performance of the business

• Composition of the dividend policy
• 65-80% pay-out of the distributable free cash flow (DFCF¹) of 100% owned investment properties and operating

businesses

• A discretionary percentage on the total realized profits on completion of development projects

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¹ DFCF based on NOI less overhead allocation, maintenance and finance expense

SUMMARY

• Strong set of results
• Higher quality of earnings – revenue mix
• Pay down of debt, now in line with debt policy
• Exceptional operational performance on stabilization of key assets
• Solid performance across asset management business – reaching stabilised levels
• Strong development sales in 2015, continue to see opportunities in the market
• Committed to growth
• Ambitious recurring revenue growth plan under way
• Target 40% increase in 2020 NOI over 2016
• AED 900 million committed to date
• Shareholder returns
• Formalised dividend policy now in place

24

APPENDIX

25

DEVELOPMENT SUMMARY TABLE – 31 DEC 15

26

Launch date Sold units ¹ Sold unit sales value (AEDm) ² Sold units ¹ Sold unit sales value (AEDm) ² Units % sold as at 31 Dec 2015 Ansam Yas Island Over-time 2014 28 52 483 796 547 88% 12% 2017 Hadeel Al Raha Beach Over-time 2014 4 10 213 425 233 91% 17% 2017 Nareel Abu Dhabi Island Over-time 2015 60 819 60 819 146 41% 51% 2017 Merief Khalifa City Over-time 2015 281 609 281 609 281 100% 0% 2017 Meera Shams Abu Dhabi Over-time 2015 291 372 291 372 408 71% 0% 2018 Mayan Yas Island Over-time 2015 51 95 51 95 271 20% 0% 2018 715 1,957 1,379 3,116 1,886 73% 19% Land plot Al Raha Beach Point-in-time n/a n/a n/a n/a 908 n/a n/a 0% 2016 Total 715 1,957 1,379 4,024 1,886 73% Expected completion Project Location Recognition Revenue recognition % 2015 Total

¹ Sold units includes all units where a sales purchase agreement (“contract”) has been signed. This does not include sales reservations and pending sales contracts. ² Sold units sales value is the total value of the sold unit contracts. This does not include sales reservations and pending sales contracts.

BUSINESS OVERVIEW Property development management Asset management Adjacent Businesses

Property Development

• Current projects – Ansam, Hadeel,

Nareel, Merief, Meera and Mayan Development Management

• Development management projects

including Abu Dhabi Plaza Kazakhstan

• National Housing Initiative – no active

projects Retail

• 470,000 sqm GLA across 27 assets
• Yas Mall: 96% trading occupancy

Residential

• 4,800 units across 10 developments
• 98% leased as at 31 Dec 15

Office

• 204,000 sqm GLA across 7 assets
• 95% leased as at 31 Dec 15

Hotels

• 2,536 keys across 9 hotels
• 79% occupancy (2015FY)

Schools

• Aldar Academies – 100% owned
• 5,500 student seats across 6 schools

Property & Facilities Management

• Khidmah - 60% owned

Construction

• Pivot – 60% owned

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FULL YEAR SEGMENTAL ANALYSIS

¹ Recurring revenues assets include Investment Properties, Hospitality & Leisure, Operative Villages, Schools (Aldar Academies) and Property & Facilities Management (PFM) (Khidmah) 2015 FY recurring revenues excludes Pivot revenue of AED451m (2014 FY revenue: AED170m) 2015 FY recurring revenue gross profit excludes Pivot gross profit of AED31m (2014 FY gross profit: AED5m)

2015FY recurring revenues of AED2,865 million (2014FY: AED2,250 million) ¹ 2015FY recurring revenues gross profit of AED1,505 million (2014FY: AED1,010 million) ¹

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1,621 635 128 931 255 1,088 623 119 589 399 1,015 3,733

250 500 750 1,000 1,250 1,500 1,750 2,000

Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesses Development Management Property Development

2015 FY Segmental Revenue Performance

2015 FY 2014 FY AED Millions 1,235 171 28 102 130 737 164 31 83 83 540 420

250 500 750 1,000 1,250 1,500

Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesses Development Management Property Development

2015 FY Segmental Gross Profit Performance

2015 FY 2014 FY AED Millions

THANK YOU

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