Results Presentation Year ended 31 Dec 2014 2 Feb 2015 0 - - PowerPoint PPT Presentation

Results Presentation

Year ended 31 Dec 2014 2 Feb 2015

Disclaimer

1

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.

661 2,458 3,138 2012 2013 2014 Booked Sales ($ mn)

DAMAC overview

Headquarters in Dubai

55

mn sq ft development pipeline

7

countries with projects in- progress and in-planning

c.10,000

Hospitality units in-progress and In-planning

c.1,950

employees

c.500

sales staff in over 12 sales

• ffices

450+

Project execution and execution support team

US$3.1bn

Booked Sales in 2014

2013 - $2.5bn

US$2.0bn

Revenue in 2014

2013 - $1.2bn

91%

• f customers are non-

UAE nationals (2007- 2014 sales value)

Completed (1) projects 12,866 units 92% Total: In Dubai:

During Crisis 2009-11 Pre-crisis upto 2008 Cumulative up to 31 Dec 2014

Strong delivery track record across economic cycle Performance highlights Portfolio Overview

Note: Exchange rate US$/AED= 0.2721 used in the whole presentation (1) Completed projects: projects with Building Completion (BCC) received (2) In-progress projects: projects with enabling works started / consultant appointed (3) In-planning projects: projects with no consultant appointed

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77% 272% YoY Growth %

Note: Sales Booking data as of 31 Dec 2012,31 Dec 2013 and 31 Dec 2014 respectively

In-progress (2) and In-planning (3) projects c.38,000 units c.92% 28% 64%

Post-crisis 2012-2014

692 1,224 2,010 2012 2013 2014 Revenue ($ mn) 2,074 3,257 7,535 12,866 Units Completed Dubai - 11,845 units Outside Dubai - 1,021 units

2014 Performance highlights

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Revenue +64% Gross profit +49% Operating profit +48%

$2,009.6m $1,176.1m $939.3m

(2013: $1,224.3m) (2013: 788.0m) (2013: $636.4m)

Net profit +46% Net cash flow +80% from

• perating activities

Total assets +68%

$937.0m $882.4m $5,122.7m

(2013: $641.5m) (2013: $489.8.3m) (Dec'13: $3,041.5m)

Equity +118% Cash +211% Gross Debt

$1,433.6m $1,799.3m $719.6m

(Dec'13: $659.1m) (Dec'13: $578.2m) (Dec'13: $85.3m)

Debt to Total Assets Gross Margins -5.8ppt Booked Sales +28%

14.0% 58.5% $3,138.0m

(Dec'13: 2.8%) (2013: 64.4%) (2013: $2458.0m)

Financial Review

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• Revenues grew 64% to $2,009.6mn in 2014

(2013: $1,224.3mn). Higher development revenue and land sales on villa units contributed to higher total revenue.

• Gross margins at 58.5% in 2014 lower vs last

year due to product mix.

• Net profit grew 46% to $937.0mn in 2014

(2013: $641.5mn)

• Net Cash generated from operating

activities at $882.4mn (2013: $489.8mn)

• Total Assets up 68% during the year, mainly

led by $1.2bn increase in ‘Cash & Bank balance’ and $0.4bn increase in ‘Development Properties’

• Advances from customers stood at

$1,985.1mn as at Dec’14.(Dec’13: $1,715.3mn)

• Raised Sukuk worth $650mn in Apr’14 (5 year

maturity with fixed 4.97% interest). 2014 highlights Total Assets Development Properties Advances from Customers Revenue and Profitability Cashflow from Operations Capital Structure

1,224 2,010 642 937 64% 59%

• 20%

0% 20% 40% 60% 80% 500 1,000 1,500 2,000 2,500 CY13 CY14 Revenue ($mn) Profit for the year ($mn) Gross Margins % (RHS) 113 882 200 400 600 800 1,000 2013 2014 Cash flows from Operations ($mn) 659 1,434 85 720 578 1,799 300 600 900 1,200 1,500 1,800 2,100 Dec'13 Dec'14 Equity ($mn) Bank borrowings ($mn) Cash & Bank Balance ($mn) 3,042 5,123 83% 81% 0% 20% 40% 60% 80% 100% 2,000 2,300 2,600 2,900 3,200 3,500 Dec'13 Dec'14 Total Assets ($mn) Dvplmt Prop + Cash as % of TA (RHS) 84 97 1,650 1,919 199 311 1,933 2,328 500 1,000 1,500 2,000 2,500 Dec'13 Dec'14 Completed units ($mn) Properties under development ($mn) Land held for development ($mn) 1,715 1,985 1,400 1,500 1,600 1,700 1,800 1,900 Dec'13 Dec'14 Advances from Customers ($mn)

Statement of Financial Position

5 In US$ mn Dec'14 Dec'13 Change ASSETS Property and equipment 16.3 12.5 3.8 Development properties 2,327.5 1,932.7 394.8 Other financial assets 232.0 77.9 154.1 Trade and other receivables 742.6 409.5 333.1 Financial investments 5.0 30.7 (25.7) Cash and bank balances 1,799.3 578.2 1,221.1 Total Assets 5,122.7 3,041.5 2,081.2 EQUITY AND LIABILITIES Equity Share capital 650.0 650.0 0.0 Statutory reserve 41.3 41.3 0.0 Group restructuring reserve (566.7) (566.7) 0.0 Investment revaluation reserve 0.0 0.5 (0.5) Retained earnings 1,309.0 534.0 775.0 Total Shareholders' Equity 1,433.6 659.1 774.5 Liabilities Bank borrowings 75.3 85.3 (10.0) Sukuk Certificates 644.3 0.0 644.3 Due to related parties 11.0 1.2 9.8 Provision for employees’ end of service indemnity 7.9 4.9 3.0 Trade and other payables 2,950.6 2,291.0 659.6 Total Liabilities 3,689.1 2,382.4 1,306.7 Total Shareholders' Equity & Liabilities 5,122.7 3,041.5 2,081.2 Development Properties – Dec’14 ($ mn) Trade and other payables - Dec’14 ($ mn) 97 1,919 311 Land held for future development Properties under development Completed properties 1,985 167 216 113 469 Advances from Customers Accruals Other payables Retentions payable Deferred consideration for land payments

788 1,176 200 400 600 800 1,000 1,200 1,400 CY13 CY14 Gross Profit ($ mn) 1,224 2,010 500 1,000 1,500 2,000 2,500 CY13 CY14 Revenue ($ mn) 636 939 200 400 600 800 1,000 CY13 CY14 Operating Profit ($ mn)

Statement of Comprehensive Income

6 Revenue Gross Profit Operating Profit Net Profit In US$ mn CY14 CY13 Growth Revenue 2,009.6 1,224.3 64% Cost of sales (833.5) (436.3) 91% Gross profit 1,176.1 788.0 49% Gross profit margin 58.5% 64.4% Other operating income 47.8 69.4

• 31%

General, administrative and selling expenses (256.0) (181.1) 41% Brokerage commissions (67.1) (63.4) 6% Depreciation (3.8) (3.6) 6% Reversal of impairment on development properties 42.3 27.1 56% Operating profit 939.3 636.4 48% Operating profit margin 46.7% 52.0% Other Income 9.8 5.7 72% Finance Income 15.1 4.3 251% Finance Costs (27.2) (4.9) 455% Profit/(Loss) for the period 937.0 641.5 46% Items that may be reclassified subsequently to profit or loss (0.5) 0.5 NA Total Comprehensive Income 936.5 642.0 46% Net income margin 46.6% 52.4%

64% 49% 46% 48% 642 937 200 400 600 800 1,000 CY13 CY14 Net Profit ($ mn)

490 882 200 400 600 800 1,000 CY13 CY14 Net Cashflow from Operations ($ mn)

Statement of Cash Flows

7 Net Cash flow from operating activities Movement in cash and cash equivalents during 2014

80% In US$ mn CY14 CY13 Change Cash flows from operating activities Profit for the period 937.0 641.5 295.5 Adjustments for: Depreciation on property and equipment 3.8 3.6 0.2 Provision for employees’ end-of-service indemnity 3.3 2.0 1.3 Loss on retirement of property & equipment 0.7 0.0 0.7 Gain on disposal of financial investments (0.2) (0.3) 0.1 Reversal of impairment on development properties (42.3) (27.1) (15.2) Provision for impairment for trade receivables 25.5 24.0 1.5 Amortisation of issue costs on Sukuk certificates 0.6 0.0 0.6 Finance costs 27.2 4.9 22.3 Finance income (15.1) (4.3) (10.8) Operating cash flows before changes in working capital 940.5 644.3 296.2 Incr in trade and other receivables (358.8) (369.3) 10.5 Incr in development properties (356.5) (310.8) (45.7) Incr in due to related parties 9.8 (310.0) 319.8 Decr in due from related parties 0.0 377.3 (377.3) Incr in trade and other payables 652.1 460.0 192.1 Net cash generated from operations 887.1 491.5 395.6 Finance costs paid (19.7) (4.9) (14.8) Interest received 15.3 3.8 11.5 Employees’ end of service indemnity paid (0.3) (0.6) 0.3 Net cash generated from operating activities 882.4 489.8 392.6 Net cash (used in) from investing activities (443.1) (18.1) (425.0) Net cash (used in)/generated from financing activities 471.7 (31.8) 503.5 Net Increase / (Decrease) in Cash & Cash Equivalents 911.0 439.9 Opening Cash & Cash Equivalents 545.7 105.8 Closing Cash & Cash Equivalents 1,456.7 545.7

546 882 443 472 1,457 200 400 600 800 1,000 1,200 1,400 1,600 Opening Cash & Cash Equivalents CF from Operating activities CF from Investing activities CF from Financing activities Closing Cash & Cash Equivalents

Operational Review

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• Booked sales worth $3,138mn in 2014 vs

$2,458mn in 2013

• AKOYA master developments witnessed total

sales of c.$2.5bn up to Dec’14 since launch.

• DAMAC Towers by Paramount has recorded

booked sales c.$766mn up to Dec’14.

• Completed 3,553 units in 2014 across 8
• projects. Cumulative delivery till date

12,866units.

• Construction progressing as planned across

projects under development.

• Completed first International Project Al

Jawharah in KSA (300 Units).

• Acquisition and launch of second master

development AKOYA Oxygen during the year.

• Other Key launches during the period were,

Celestia, Vantage, Allure and Burj DAMAC Waterfront (Qatar) and Constella (first officially certified Sharia compliant development in the region)

• 2.5Km AKOYA Drive / most expansive outdoor

shopping experience in Dubai.

• Hospitality - Launch of new hospitality brand

NAIA by DAMAC. 2014 highlights Area Sold Booked Sales Units completed Advances from Customers

2,458 3,138 500 1,000 1,500 2,000 2,500 3,000 3,500 2013 2014 Booked Sales ($mn) 6.48 7.9 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2013 2014 Area sold (mn sq ft) 2,116 3,553 600 1,200 1,800 2,400 3,000 2013 2014 Units Completed 1,715 1,985 1,400 1,500 1,600 1,700 1,800 1,900 Dec'13 Dec'14 Advances from Customers ($mn)

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Portfolio Overview (as at 31 Dec 2014)

Portfolio by product (in progress and in-planning projects) Portfolio by development status Portfolio by location (in progress and in-planning projects)

Abu Dhabi, UAE

No of projects 1 Units 645 Sellable area (k sq ft) 582 Completion date 2018

Amman, Jordan

No of projects 1 Units 398 Sellable area (k sq ft) 527 Completion date 2015

Bahrain

No of projects 1 Units 446 Sellable area (k sq ft) 429 Completion date NA

Beirut, Lebanon

No of projects 1 Units 188 Sellable area (k sq ft) 341 Completion date 2015

Doha, Qatar

No of projects 4 Units 789 Sellable area (k sq ft) 845 Completion date 2015/17

Baghdad, Iraq

No of projects 2 Units 220 Sellable area (k sq ft) 552 Completion date 2018/19

Riyadh, Saudi Arabia

No of projects 1 Units 472 Sellable area (k sq ft) 584 Completion date 2016

Dubai, UAE

No of projects 30 Units 34,890 Sellable area (k sq ft) 50,421 Completion date 2015/19

Completed , 12.18, 18%

In- Progress, 51.35, 77% In- Planning, 2.93, 5% Area (mn sq ft) UAE, 35,535 , 93% KSA, 472 , 1% Qatar, 789 , 2% Lebanon, 188 , 1% Iraq, 220 , 1% Jordan, 398 , 1% Bahrain, 446 , 1%

No of Units

Serviced apts, 7,740, 20% Hotel rooms, 2,125, 6% Others, 28,183, 74% No of Units

Well established luxury Brand Track Record of Delivery Co-branded developments with global luxury brands Hospitality – DAMAC Maison / NAIA by DAMAC Efficient and low leverage operating model Improved Dubai market dynamics supports strong and sustainable growth Sizeable sales force c.500 Aspire to be the market leader in Middle East luxury real estate 10

Key Messages

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Thank you

investor.relations@damacgroup.com