TS RESULTS 2020 RESUL TION PRESENTATIO HY 2020 PRESENT & HY QU QUAR ARTER TER ENDE ENDED D 30 30 JUNE JUNE 20 2020 20 Q2 & 13 13 A AUGUST UGUST 20 2020 20 Q2 #A #ALD LDARQ220 Q220 #A #ALD LDARH RH120 120 #A #ALD LDAR Al Aldar Q2 & HY 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 Q2 & HY 2020 Results Al 1
Strong financial performance Development revenue growth ▪ Q2 2020 revenue up 21% to AED 2.0 bn ▪ Q2 2020 DM revenue up 83% to AED 1.3 (HY 2020 up 10% to AED 3.76 bn) bn driven by DM govt award projects, strong inventory sales and Saadiyat land plot sale ▪ Q2 2020 gross profit up 7% to AED 0.72 ▪ Q2 2020 development sales AED 0.51 bn bn (HY 2020 up 2% to AED 1.41 bn) despite no new launches (HY 2020 ▪ Q2 2020 net profit up 2% to AED 0.48 bn Q2 & HY 2020 2020 development sales AED 0.84 bn) (HY 2020 down 19% to AED 0.79 bn) Robust balance sheet and ample liquidity Asset diversification mitigating weaker sectors ▪ Debt well within policies for AM and DM ▪ Q2 2020 NOI down 21% to AED 0.31 bn at 37.1% and 9.3% respectively (HY 2020 NOI down 14% to AED 0.72 bn) SUMMARY ▪ AED 5.9 billion free cash and undrawn ▪ Hospitality and retail businesses most Q2 & HY committed credit facilities available as at impacted due to Covid-19 30 June 2020 ▪ Resilient occupancy across investment SUMMA properties at 88% Commitment towards sustainability 2020 outlook ▪ Refreshed sustainability strategy including ▪ Too early to quantify the full impact of mission and framework the ongoing period of disruption on our business ▪ Continue to monitor the situation closely and update the market when appropriate Al Aldar Q2 & HY 2020 Results 2
Development impact Asset management impact Corporate impact ▪ Handovers – slower than ▪ Hotels – majority of portfolio ▪ Business continuity – majority of expected handed over to customers remained closed to the public over employees continue to work from given careful management of most of Q2 home. First phase of returning customer interactions employees to office implemented in ▪ Retail – rent free period cost July 2020 ▪ Development activity – amortised over remaining lease . ▪ Cost management – suspension construction activities in UAE Steady improvement in footfall and VIEW progressed without mandatory spending since reopening in May of all non-essential expenses shutdowns 19 VID-19 ▪ Commercial and residential – ▪ Tenant and customer support – VERVIE ▪ Collections – strong progress on less impacted to date, occupancies AED 190 million in support and cash collections for units handing remains stable programmes announced across DM over during H1 2020, supported by and AM ▪ Valuations – no further fair value innovative new financing structures COVID ▪ Innovation – drive to mitigate write downs during Q2 2020 ▪ New launches – no new launches current market challenges ie. virtual ▪ Aldar Education – distance in H1 2020 and future launch sales viewings, electronic sales OVE pipeline is under review. Focus on learning platform successfully rolled purchase agreements and virtual CO inventory sales out in early March and continued handover snagging until end of academic year Al Aldar Q2 & HY 2020 Results 3
AED bn Q2 2020 Q2 2019 Variance HY 2020 HY 2019 Variance DM HIGHLIGHTS TS No new development launches & Development sales 0.51 0.85 (41%) 0.84 1.87 (55%) COVID-19 restrictions on sales New launches - 1.19 - 0.56 - - performance Other (inventory and land) 0.51 0.29 +75% 0.84 0.68 +23% DM HIGHLIGH Revenue and gross profit growth Development revenues 2.07 1.41 1.27 0.69 +83% +47% driven by progress on projects under Property development 1.72 1.34 1.03 0.65 59% +28% construction, strong inventory sales, land plot sale and fixed price govt Development management 0.23 0.04 0.36 0.07 +473% +433% projects (twofour54 and Al Falah) Development gross profit 0.69 0.54 0.40 0.26 +27% +53% 0.64 0.48 Property development 0. 37 +63% 0.23 +33% (4%) 0.05 0.06 Development management 0.04 0.04 (16%) Lower margin DM govt projects are 32% 38% 33% 39% Gross profit margin (6%) (6%) contributing more to revenue mix Decline in backlog is predominantly Revenue backlog 3.3 4.5 (27%) 3.3 4.5 (27%) due to progress of projects under development and no new launches Percentage sold 84% 75% +9% 84% 75% +9% Stronger focus in HY 2020 sales strategy to sell inventory units Development pipeline 6,509 6,286 +4% 6,509 6,286 +4% 3 developments launched in H2 2019. No new developments launched in 2020 Units sold 138 477 (71%) 247 946 (74%) No new development launches during the quarter due to COVID-19 restrictions Al Aldar Q2 & HY 2020 Results 4
AED bn Q2 2020 Q2 2019 Variance HY 2020 HY 2019 Variance TS AM HIGHLIGHTS Recurring revenues 0.62 0.81 (23%) 1.42 1.66 (14%) Asset Management 0.42 0.57 (26%) 0.98 1.20 (18%) Adjacent Businesses 0.23 (15%) 0.46 (3%) 0.20 0.45 AM HIGHLIGH Both revenue and NOI declines are Net operating income 0.31 0.40 0.72 0.82 (21%) (14%) predominantly linked to Covid-19 0.27 0.36 0.62 0.75 Asset Management (24%) (17%) impact on hospitality and retail portfolios 0.04 0.04 - 0.09 0.08 +19% Adjacent Businesses Resilient occupancy maintained in Occupancy¹ 88% 90% (2%) 88% 90% (2%) challenging market conditions No major changes to portfolio over Gross asset value (GAV)² 18.5 18.8 18.5 18.8 (2%) (2%) last 12 months Portfolio WAULT remains healthy Portfolio WAULT (years) 4.2 4.9 (14%) 4.2 4.9 (14%) supported by increased residential bulk components and successful Residential bulk leases³ 51% 49% +2% 51% 49% +2% renewals across key sectors 61% 59% 61% 59% Following Etihad JV transaction in Q2 Govt/ GRE commercial (2%) (2%) 2019, GRE exposure remains stable leases³ Hotel occupancy⁴ 47% 66% (19%) 60% 77% (17%) Decline due to Covid-19 impact on hospitality business ¹ Occupancy as a percentage of GLA of investment properties (residential, retail and commercial) as at period end Al Aldar Q2 & HY 2020 Results ² Gross Asset Value of Asset Management segments; completed investment properties (retail, residential and commercial) and operating businesses (hospitality) as at 30 Jun 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 ⁴ Hotel occupancy presented as rooms occupied as a percentage of rooms available for period
14% decrease in HY 2020 NOI predominantly due to Covid-19 impact on hospitality & retail (AED mn) 827 715 GEMENT T -10 -41 -6 77 -70 MANAGEMEN 15 59 92 -11 207 I WALK Etihad Plaza added Al Jimi Mall extension Etihad Airways Insurance claims Aldar Academies 201 NOI WALK in Mar’19 + Etihad Plaza retail Centre addition under process profit growth Occupancy @ 88% Amortization of Occupancy @ 90% UFC Fight Island Khidmah Provis (30-Jun-19: 88%) rent-free period (30-Jun-19: 92%) awarded for July profit growth Al Murjan Tower Saadiyat DC profit Occupancy @ 88% Restrictions on social 240 Ceased Yas OV sold in Mar’19 (30-Jun-19: 90%) movement/ lockdown stable 199 ASSET ASSET LfL rent down LfL rent down LfL rent down Occupancy @ 60% (HY’19: 77%) c. 6% c. 10% c. 2% MAN 244 234 Key drivers NO HY 2019 Residential Retail Commercial Hospitality Adjacent businesses HY 2020 Residential Retail Commercial Hospitality Adjacent businesses Al Aldar Q2 & HY 2020 Results 6
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