INVESTOR PRESENTATION February 2020
CONTENTS TABLE OF CONTENTS Majid Al Futtaim 2019 Performance Update Appendix • Majid Al Futtaim Group Overview 2
2019 Overview
IN 2019 WE HAVE SUSTAINED OUR FINANCIAL POSITION, WHILST CELEBRATING SOME MILESTONE ACHIEVEMENTS Revenue increased1% EBITDA increased1% Cashflow from Operations 2 green sukuks issued to USD 9.6B to USD 1.3B to EBITDA at 122% totalling USD 1.2B Environmental Social Governance Portfolio of 26 Opened 42 new Carrefour stores Added 146 cinemascreens Obtained “low risk” ESG Total store count 306 Total screens 511 rating fromSustainalytics, 1 shopping malls welcomed over 200 million visitors and “A” rating from MSCI 1 AS AT FEBRUARY 2020 4
THERE ARE LONG TERM OPPORTUNITIES IN THE REGION DESPITE CURRENT HEADWINDS CurrentHeadwinds 2040Outlook • MENAP region’s • MENA economies adapting • Geopolitical tensions have contribution to world GDP • Diversification of GCC to slower growth in the will increase by 1-2%, escalated around US-Iran economies away from short term until reform driven by population relations hydrocarbons programs shape the growth • High population growth longer term for MENAP • MENA region continuesto exhibit youth • Saudi Arabia and Egypt unemployment rates will constitute a sixth of higher than global regional real GDP average • Pakistan will become a • UAE’s private sector new growth pocket remains in a competitive • Mid single digit growth environment expected for the rest of • Dubai tourism mix Africa, with an emerging changing due toUSD middle class strength • Oil prices adjusted to a • Trade flows expected to be “new normal” range as a • Lebanon experiencing growing at above global result of structural political and averages changes in the global economic instability economy SOURCE: McKinsey Consumer Trends Database, Oxford Economics, United Nations, Global insight, Team analysis, Expert interviews, HSBC, IMF, PWC report, UNCTAD, Focus Economics, WEF MENA Risks Landscape 5
FROM A CUSTOMER BEHAVIOR PERSPECTIVE, THERE HAS BEEN A STRONG SHIFT TOWARDS LIFESTYLE, CONVENIENCE AND DIGITAL Connectivity Social connection Trends over brands Sustainability 71% 64% Retail CEO’s continue to see 66% Internet Penetration Of MENA respondents Of global consumers Rate is at use Facebook or Twitter loyalty towards “trends” when finding Are willing to pay more rather than “brands” inspiration for purchases in the Middle-East in 2019 for sustainable brands Convenience Omni-channel Personalization Experiences 36% Of global respondents 73% Of consumers 77% Of global consumers Consumers and especially millennials emphasized price and convenience use a combination of online and expect to see more personalized Look for distinctive and as a driver for online offline while shopping content in the future renewed experiences SOURCE: PWC survey 2017, Total Retail 2017, World Bank, ADEC, Saudi National Statistics, UN, Hootsuite, Nielsen, Reuters, Mckinsey study 6
WE REMAIN COMMITTED TO OUR STRATEGIC PRIORITIES Maintain leadership Expand to be leaders in Build a foundation Grow at scale at least in our core countries adjacent/core geographies position in Africa one adjacent business Expand our presence inEgypt Expand in additional Protect our leadership Evaluate business opportunities and Saudi Arabia, driven by African countries, position in the UAE in adjacent businesses our shopping malls business primarily with Carrefour WHILE ADOPTING A LEAN AND AGILE APPROACH Cost & Balance Procurement and Financial Discipline Capability Building Sustainability SheetOptimization Supply Chain in Investments 7
Sustainability
OUR SUSTAINABILITY STRATEGY IS INTEGRATED IN THE WAY WE DO BUSINESS Our strategy will manage the socio-economic and environmental issues that matter most to us and our stakeholders • Local economic development • Promoting sustainable lifestyles TRANSFORMING NON-EXHAUSTIVE • Product quality & safety LIVE • Crime and security • Net Positive carbon • Community well being & public realm • Net Positive water • Responsible procurement RETHINKNG • Circular economy RESOURCES • Climate change adaptation • Healthy workplaces • Ecosystem services • Human rights & employment conditions EMPOWERING OUR PEOPLE • Health & safety • Changing role of women in the workplace Majid Al Futtaim has been recognized by external agencies: ESG RATING A 18.9 /100 Low Low Med High Severe Negl 0-10 10-20 20-30 30-40 40-100 9
2019 Performance
SUMMARY OF MAJID AL FUTTAIM’S 2019 PERFORMANCE STABLE FINANCIAL PERFORMANCE DELIVERED IN 2019 Revenue EBITDA CFO:EBITDA Assets +1% vs PY to: +1% vs PY to: at: +5% vs PY at: USD 9.6bn USD 1.3bn 122% USD 17.2bn 2 STABILITY AND STRENGTH THROUGH DIVERSIFICATION GEOGRAPHICAL SPLIT – 31 December 2019 SEGMENTAL SPLIT – 31 December 2019 By Revenue By EBITDA By Revenue By EBITDA Oman Properties Ventures Others ¹ Others ¹ Ventures 5% 13% 9% 17% 9% KSA 8% 4% Oman UAE 6% 48% Qatar UAE 6% Retail 59% 31% KSA Properties 9% 64% Bahrain Qatar 8% 7% Bahrain Retail Egypt Egypt 4% 79% 9% 9% ¹ Others includes Kuwait, Jordan, Pakistan, Lebanon, Iraq, Georgia, Armenia, Kenya, Uganda 2 Includes impact from IRFS 16 11
Majid Al Futtaim Properties
2019 PERFORMANCE: MAJID AL FUTTAIM PROPERTIES Revenue EBITDA Operational Highlights (USDmn) (USDmn) 1,264 1,256 • Increased our shopping mall portfolio to 26 with the opening of 814 813 City Centre Al Maza, City Centre Suhar and My City Centre Masdar 2018 2019 2018 2019 • Completed redevelopment of City Centre Alexandria in 93% Malls avg occupancy Egypt, and City Centre Ajman in the UAE Footfall y-o-y +4% • Visitors to our malls crossed the 200M mark for the first time Rent to sales 13% Hotels avg occupancy 80% -8% REVPAR change y-o-y 13
Majid Al Futtaim Retail
2019 PERFORMANCE: MAJID AL FUTTAIM RETAIL Operational Highlights Revenue EBITDA (USDmn) (USDmn) 7,622 7,662 • Celebrated 300th Carrefour store opening, while expanding to 16 countries with entry to Uganda 391 383 • Launched new F&B 'live cooking’ concept in select UAE stores 2018 2019 2018 2019 Sales (LFL) -5% • Introduced robotic automation to increase the capacity of online order fulfilment centres Hypermarket openings 12 Supermarket openings 30 • Inaugurated our Retail Business School in the UAE, providing functional and commercial training for our employees Total stores 306 Online orders y-o-y +600% 15
Majid Al Futtaim Ventures
2019 PERFORMANCE: MAJID AL FUTTAIM VENTURES Revenue EBITDA Operational Highlights (USDmn) (USDmn) 651 761 • VOX cinemas celebrated 20 years of operations as it approached the 500 screen milestone 113 87 2018 2019 2018 2019 • Continued expansion of cinemas in Saudi Arabia with the opening 146 Cinema screensadded of 78 new screens across 7 sites Total cinema screens 511 1 Total L&E venues 43 • L&E introduced the first Dreamscape experience in the Middle East 1 AS AT FEBRUARY 2020 17
Financing Overview
GROUP DEBT PROFILE (1/2) All Senior Unsecured financing obligations Debt Maturity Profile (USD mn) rank pari passu among themselves 2000 Capital Markets Bank Debt Majid Al Futtaim Group’s 31 December Balanced Funding Profile Notes 1600 2019 (USD bn) 108 1200 Primarily Senior Unsecured Majid Al Futtaim Holding 2.0 obligations at Holding level 20 800 Primarily Senior Unsecured 1088 1,200 21 Majid Al Futtaim Properties 1.7 obligations at Properties 400 800 level 500 31 47 Primarily project finance with 168 Others 0.2 0 limited recourse to parent 2020 2021 2022 2023 2024 2025 2026+ Total 3.9 Crossguarantees Majid Al Futtaim Holding Majid Al FuttaimProperties $1.2bn $2.6bn $200mn 5.9 yrs 1 Issued two 10 year Undrawn Available Refinanced EGP Al Maza project finance Weighted Average Green Sukuks Committed Lines with new senior unsecured term loan Debt Life 1 USD 0.9BN EQUITY HYBRIDS NOT TAKEN INTO ACCOUNT IN DEBT AND AVERAGE DEBT LIFE CALCULATIONS 19
GROUP DEBT PROFILE (1/2) Strong Leverage Metrics Facilities & liquidity 2019 includes impact of IFRS16 Debt Capital Markets Issuances % $bn 5,000 4,775 5 Bonds 12% 0.8 4,500 Sukuk 26% 1.7 4,000 4 Total Debt Capital Markets Issuances 38% 2.5 3,418 3,500 3.3x Bank Facilities % $bn 2,804 3,000 3 2,612 2,517 Drawn 22% 1.4 2.8x 2,500 2.4x Undrawn 40% 2.6 2.4x 2.3x 2,000 2 1,458 Total 62% 4.0 1,231 1,500 1,152 1,145 1,044 Total Bank Commitments & Debt Capital Markets 100% 6.5 1,000 1 Less Drawn (3.9) 500 Plus Cash 0.4 0 0 2015 2016 2017 2018 2019 Total Liquidity 3.0 EBITDA Net Debt (USD mn) Net Debt / EBITDA (times) 31 Dec 31 Dec 31 Dec 31 Dec Funding Risk Management Framework Policy/Covenant 2018 2019 2018 2019 Investment grade creditratings Liquidity Coverage - Months 18 49 52 Fitch BBB BBB Interest Rate Risk - Duration inYears 0.5-3.5 2.3 2.8 BBB BBB Standard & Poor’s EBITDA Interest Cover (x) 1 >2.0 8x 9x Total Net Debt to Total Equity(x) <0.7 0.4 0.4 EBITDA from encumbered assets as % of total EBITDA 4% 1% Secured debt as a percentage of GrossDebt 8% 1% ¹ EBITDA INTEREST COVER MEANS EBITDA OVER NET FINANCE CHARGES (EXCL IFRS 16 IMPACT) 20
Recommend
More recommend
