RESULTS TS TION 2020 RESUL PRESENTATIO PRESENT Q1 2020 QU QUAR ARTER TER ENDE ENDED D 31 31 MAR MAR 20 2020 20 21 21 M MAY Y 20 2020 20 Q1 #A #ALD LDARQ120 Q120 #A #ALD LDAR Al Aldar Q1 2020 Results
This disclaimer governs the use of this presentation. You must not rely on the information in the presentations and alternatively we recommend you 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. CLAIMER MER The statements made in this presentation are only forward-thinking statements. Such statements are based on expectations and are subject to several risks and uncertainties that could differ materially from any expected outcome or results expressed or implied in these statements. Without prejudice to the generality of the foregoing paragraph, we do not represent, DISCLAI 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. DIS Aldar Q1 2020 Results Al 1
Resilient financial performance Lower development sales ▪ Revenue flat at AED 1.8 bn ▪ Development sales down 67% to AED 0.3 bn, no new development launches ▪ Gross profit down 3% to AED 0.7 bn ▪ 83% sold across development pipeline ▪ Net profit down 39% to AED 0.3 bn ▪ AED 3.9 bn revenue backlog Robust balance sheet and ample liquidity NOI impacted by hospitality ▪ Debt well within policies for AM and ▪ NOI down 6% to AED 0.4 bn SUMMARY DM at 38.0% and 10.0% respectively ▪ Hospitality business impacted during ▪ AED 6.8 billion free cash and quarter Q1 2020 Q1 2020 undrawn committed credit facilities ▪ Resilient investment properties SUMMA available as at 31 Mar 20 occupancy at 89% Commitment to shareholder returns 2020 outlook ▪ AED 1.14 bn 2019 dividend approved ▪ Too early to quantify the full impact of at AGM in March, paid in April the ongoing period of disruption on our business ▪ No change to dividend policy ▪ Continue to monitor the situation closely and update the market when appropriate Al Aldar Q1 2020 Results 2
Development impact Asset management impact Corporate impact ▪ Handovers – slower than ▪ Hotels – largest impact for Q1 as ▪ Business continuity – majority of expected handed over to customers Yas hotel lockdown commenced employees have been working from end of Feb’20, majority of portfolio given careful management of home productively since early customer interactions remains closed March ▪ Development activity – slower ▪ Retail – majority of retail portfolio ▪ Cost management – suspension closed end of Mar’20 – limited Q1 than expected progress due to of all non-essential expenses and VIEW implemented safety measures and P&L impact temporary pay reductions initiated supply chain. Construction activities VID-19 19 ▪ Commercial and residential – ▪ Tenant and customer support – in UAE progressing without VERVIE mandatory shutdowns limited impact during Q1 AED 190 million in support and programmes announced across DM ▪ New launches – no new launches ▪ Valuations – internal valuation and AM in Q1 and future launch pipeline assessment resulted in AED 95 mn COVID ▪ Innovation – drive to mitigate being reviewed FV loss (predominantly Yas Mall) current market challenges ie. ▪ Aldar Education – distance whatsapp delivery service and OVE learning platform rolled out in early virtual handover snagging CO March Aldar Q1 2020 Results Al 3
AED mn Q1 2020 Q1 2019 Variance No new development launches and impact of OPMENT Development sales 333 1,016 (67%) COVID-19 restrictions VELOPMENT Development revenues 808 718 +13% Progress on projects under construction, inventory sales and govt projects (twofour54) Property development 683 692 (1%) HIGHLIGHTS HIGHLIGHTS Development management 125 26 +371% Q1 2020 property development profits supported by release of excessive cost Development gross profit 290 280 +4% provisions on projects recently completed (Mamsha, Jawaher, Yas Acres and Bridges) Property development +7% 273 255 (33%) Lower margin DM govt projects are Development management 17 25 contributing more to revenue mix Gross profit margin 36% 39% (3%) Decline in backlog is predominantly due to progress of projects under development Revenue backlog 3.9 4.3 (9%) Strong sales thresholds achieved across development pipeline DEVE Percentage sold 83% 78% +5% 3 developments launched in Q2-Q4 2019. No Development pipeline 6,509 5,899 +10% new developments launched in 2020 DE No new development launches and weaker Units sold 109 455 (76%) inventory sales during the quarter due to COVID-19 restrictions Aldar Q1 2020 Results Al 4
AED mn Q1 2020 Q1 2019 Variance Recurring revenues 805 858 (6%) Asset Management 559 632 (11%) GEMENT MANAGEMENT Adjacent Businesses 246 226 9% Both revenue and NOI decline predominantly due to Covid-19 impact on hospitality business during Q1 2020 Net operating income (NOI) 404 431 (6%) HIGHLIGHTS HIGHLIGHTS Asset Management 352 394 (11%) Adjacent Businesses 52 37 41% Resilient occupancy maintained in challenging market conditions Occupancy¹ 89% 90% (1%) No major changes to portfolio over last 12 months Gross asset value (GAV)² 18.7 18.9 (1%) ASSET ASSET Portfolio WAULT extended supported by Portfolio WAULT (years) 4.7 4.5 +4% increased residential bulk component and several new commercial leases Residential bulk leases³ 50% 42% +19% Effective strategy to grow bulk residential component over past 2 years MAN Govt/ GRE commercial leases³ 60% 59% +2% Decline due to Covid-19 impact on Hotel RevPAR (AED) 240 397 (40%) business ¹ Occupancy of investment properties (residential, retail and commercial) as at period end Aldar Q1 2020 Results Al ² Gross Asset Value of Asset Management segments; completed investment properties (retail, residential and commercial) and operating businesses (hospitality) as at 31 March 2020 5 ³ Residential bulk leases as a percentage of total residential units in portfolio and Govt/ GRE commercial leases as a percentage of total GLA
NOI decline of 6% predominantly due to Covid-19 impact on hospitality business (AED mn) 431 404 MANAGEMENT GEMENT 2 -6 - 37 -38 15 52 56 18 Etihad Plaza added Al Jimi Mall Etihad Airways Insurance claims Aldar Academies I WALK in Mar’19 extension Centre addition under process profit growth 103 NOI WALK 103 Occupancy @ 88% Etihad Plaza retail Occupancy @ 91% Suspension of Khidmah Provis and Saadiyat DC stable profits (31-Mar-19: 89%) addition (31-Mar-19: 93%) in/outbound travel Al Murjan Tower Occupancy @ 89% Restrictions on social Ceased Yas OV sold in Mar’19 (31-Mar-19: 87%) movement/ lockdown 119 113 ASSET ASSET Occupancy @ 64% Retail LfL rates down LfL rates down c.5% LfL rates down c.2% c.8% (Q1’19: 83%) Key drivers MAN 117 115 NO Q1 2019 Residential Retail Commercial Hospitality Adjacent businesses Q1 2020 Aldar Q1 2020 Results Al 6
CENT ADJACENT SES S Aldar Education Khidmah Provis Saadiyat district cooling assets NESSE ▪ Aldar Academies is the leading operator and ▪ 40% minority stake acquired in September ▪ Assets acquired as part of TDIC asset acquisition in Q2 2018 provider of private education in Abu Dhabi with 2018 the largest network of schools, delivering the ▪ Previously held under Khidmah, offering ▪ Medium term growth driven by capacity English, IB and American Curriculums adapted USINES KEY ADJ requirements from new key Saadiyat Island for the UAE properties and facilities management assets ▪ Tripled student numbers to c.22,000 students ▪ Spun off property management services into in last 2 academic years driving revenue growth Provis in February 2019 to drive growth, improve efficiencies and expand product ▪ Aldar Academies operates 4 ADNOC schools offering and 4 charter schools in addition to 8 Aldar Academies schools and nurseries BUSI KEY Q1’20 revenue down 3% Q1’20 GP up 5% Q1’20 GP down 6% Q1’20 revenue up 19% Q1’20 GP up 93% Q1’20 revenue up 19% 32 10 101 128 10 17 17 98 11 10 108 16 Revenue Gross profit Revenue Gross profit Revenue Gross profit ¹ As at 31 Mar 20 Al Aldar Q1 2020 Results 7
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