EEC Q2 Investor Presentation
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Our ur Vi Visi sion A N New Global bal Hub Establish King Abdullah Economic City (KAEC) as a strong enabler of socio-economic development in the Kingdom of Saudi Arabia.
KAEC Master Plan
Proje ject Overview view KAEC is a greenfield city development roughly the size of Washington DC. Its objective is to help with Saudi Arabia’s Acute housing demand and support economic diversification. KAEC’s Strategic location on the Red Sea puts it close to international maritime routes and provides instant access to key cities within Saudi Arabia. KAEC is comprised of the Coastal Communities, The Industrial Valley, KAP, and The Hejaz District. Land Use Current ent Plan Industrial 23,625,000 Commercial/Hospitality 12,736,000 Residential 75,373,000 Other er 19,847,000 BUA Total l 131,58 581,000 00 Employment loyment 890,00 000 Popu pula lation tion 1,750, 0,00 000 Land Use % B Breakdo down wn Industrial 21% Retail KAEC Master Plan 11% Residential 68%
CITY DRIVE VERS • Port Econom omic ic • Industrial Valley • Haramain Station Fundin ing g Impact act • Bonded Zone • Land Bridge Source ces • Babson College Realizat lizatio ion n of Econom onomic ic city y vision sion CITY DEVELOP LOPMENT NT Shareh ehold older ers s Job Crea eation tion & ECON ONOM OMIC GROWTH INFRA-ST STRUCTURE HOUSING G NEEDS DS Equ quit ity • Jobs Creation Local l & Foreign eign Inv. . • High End • Roads Network Debt • Population Logistics istics Hub • Middle End • Utilities • Ramp-up Land/U d/Unit nit Sale les Retu turn to Share- • Low End • Public Assets holde ders s Fin. . benef efits its to Govt. t. KAE AEC C Busi Bu sine ness ss COMMERCIAL L SOCIAL Model Mod el AMENITIES & LIESURE • Retail • Education • Offices • Healthcare • Hospitality • City Management
KAEC Developments
Curren t On Completion
Current nt On Completion letion Kin ing g Ab Abdul ullah lah Por ort
KAEC Financials and Segment Breakdown
(SARS M) Net Income of 79.6.2 M SAR for Q2 2016 Q2 2015 Q3 2015 Q 4 2015 Q1 2016 Q2 2016 169 236 230 386 147 132 132 85 99.8 79.6 176 158 52 52 50 8.1 -31 -31 Revenue Gross Profit Net Income % Breakdown of EEC’s Presales and Revenue Segment Revenue YTD Breakdown YTD Fi Fina nanc ncial ial RD Presales Revenue 49% Grow owth h 336 Qua uarterly erly 179 Other Income Brea Br eakd kdown own 11% 117 42 39.3 28 Commercial IV 8% 32% Residential Industrial Valley Commercial Other Income Total 364M SARs Development Development
Residenti dential l Financi ncial al Indu dust stri rial al Valley Commerc mercia ial l Develo elopm pment ent 158 Revenu enue e 117 28 72.9 EEC’s GP GP Se Segme ment nt 104 -10 Brea Br eakd kdown own 47 YT YTD JU D JUNE E EBITD TDA 94.7 2016 2016 -15.9 60 Net Profit it 195 -18.1
Total al Area ea (M 2 ‘000) Number ber of Units (Full ll Valu lue) PJTD YTD PJTD YTD 4,245 22,516 2,730 11,609 1,466 8,711 363 35 1761 20 48 227 113 208 39 55 - 2 2 Vertical Land IV Land Sales PDC Land Total Area Vertical Land IV Land PDC Land Total Sales Units SALES SAL ES Sale les s Valu lue (SAR R M) Reve venue nue (SAR R M) PJTD YTD PJTD YTD 4,152 BREA BR EAKDO DOWN WN 7,496 PJTD D VS VS. YT YTD JUN UNE 20 E 2016 16 1,337 1,202 2,630 2,377 853 760 1,304 254 760 103 98 53 378 212 124 42 Vertical Land IV Land PDC Land Total Vertical Land IV Land Sales PDC Land Total SV Sales Units
KAE AEC C Ma Mast ster er Pla lan n Res esid ident ential ial De Devel elop opmen ment t
Vertic ical l Land RE RE (SARS) S) 124 Sales 212 103 55 Revenu enue e Resi sident dential ial De Deve velop lopment ment 54 Sales s & L & Lease se GP 35 Breakdo Br akdown wn Gross s YTD D JU JUNE NE 98% Margin 34% 2016 2016 NLA 77,385 5 SQM 459,445 45 SQM *60 month ths s of insta tallment nts s for land nd and vertica ical with h a down payment nt of 10% for land nd and 20% for verti tica cal.
Re Resi side dentia ntial l Develo elopment pment Game e Ch Chang ngers s Strong ng sales es growth th at 79.95% 5% CAGR from m 2012 2012-2015 2015 driven en by: • Competitive prices offering investment upside • Good infrastructure relative to other major cities regionally • Strong demand for affordable housing in Saudi Arabia. Saudi Arabia has a demand of over 1M houses to meet market needs. Resi sident dential ial • Growth in Vertical Development by 395% since 2013. De Deve velop lopment ment • Growth in Land Development by 37% CAGR since 2013. Sales s & L & Lease se • 49% of EECs consolidated revenues come from the residential development segment. Br Breakdo akdown wn • Over 10 launches expected in Q4 after the Ramadan and Hajj Season are YTD D JU JUNE NE complete 2016 2016 • For FY 2016 there were launches for the following projects: Shurooq, TG5, TG4, TG3, TG1.3, GC1c, GC3 • Outstanding issues: Pending the drafting of off plan sale regulation a large volume of sales launches will follow.
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