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00 Disclaimer
■ Net profit up 18% to AED 601 million
■ Investment properties gross profit up 92% to AED 299 million in Q2 2015 due to contribution of fully leased residential portfolio and Yas Mall
■ Property development gross profit up 27% to AED 135 million despite lower revenues as margins improve
■ Lower finance costs – down 46% in quarter
■ Strong cash flow generation following collection of AED 1.2 billion Government of Abu Dhabi receivable
■ Further AED 1.1 billion reduction in debt to AED 7.1 billion during the quarter
■ Earnings per share of 8 fils in Q2 2015 (Q2 2014: 6 fils)
01 Q2 2015 Results Q2 Net Profit AED 601 million, up 18% versus Q2 2014
Retail
■ 340 units now trading at Yas Mall. Yas Mall is fully leased and expected to be fully occupied by year end
Residential
■ 4,800 unit strong residential portfolio achieved occupancy of 98% as at 30 June 2015
Office
■ Office portfolio achieved 91% leasing as at 30 June 2015, following further leasing agreements signed (30 Jun 2014: 86%)
Hotels
■ H1 2015 occupancy across the hotel portfolio at 81%, in line with H1 2014
02 Q2 Operational Highlights Continued recurring revenue asset stabilisation
Development launches
■ 2,000 units across three residential developments announced at CityScape: Mayan, Meera and West Yas
Q2 Development sales
■ Nareel Phase II land plots sold out
■ Meera Phase I apartments sold out
Development announcements
■ Main construction contracts awarded at Ansam and Al Hadeel and both making good progress
■ H1 development sales of AED1.9bn
Development management projects
■ Abu Dhabi Plaza project in Kazakhstan progressing well
03 Q2 Operational Highlights (cont’d) Development
04 Business overview
Property development management Asset management Adjacent Businesses
Property Development • Current projects – Ansam, Hadeel, Nareel,
Merief, Meera and Al Raha Beach • Upcoming projects – Mayan Development Management • Development management projects
including Abu Dhabi Plaza Kazakhstan • National Housing Initiative – no active
projects
Retail • 470,000 sqm GLA across 27 assets • Yas Mall: 100% leased Residential • 4,800 units across 10 developments • 98% leased as at 30 Jun 15 Office • 184,000 sqm GLA across 6 assets • 91% leased as at 30 Jun 15 Hotels • 2,536 keys across 9 hotels • 81% occupancy in H1 2015
Schools • Aldar Academies – 100% owned • 5,500 student seats across 6 schools Property & Facilities Management • Khidmah - 60% owned Construction • Pivot – 60% owned
Property
Development
Development
Management
Investment
Properties
Hospitality &
Leisure
Operative
VillagesLand sales National Housing Residential Hotels Yas Island OVs Aldar Academies
Unit sales Commercial Yas Links Al Ain OV Khidmah
Other (transfer
fees etc)
Retail Pivot
Property
management fees
Property
DevelopmentConstruction
Investment
PropertiesHotels
Operative
VillagesLeisure Schools
Land sales National Housing Residential Hotels Yas Island OVs Yas Links Aldar Academies
Unit sales Pivot Commercial Al Ain OV
Development
management fees
Property
management fees
Retail
Khidmah
Adjacent
Businesses
Development
management fees
Other (transfer
fees etc)
Property & Development Mngt Asset Management
Ne
w s
egm
en
talr
ep
ort
ing
Pri
or
segm
enta
lre
po
rtin
gUpdates to segmental reporting
05
Reasons for segmental changes
■ Realign segments with management’s view and strategic guidelines
■ Better align communication of business strategy to market
No change to reported recurring revenues – same asset classes included
Recurring revenue assets
Shift into Property & Development management segment
Shift to Asset Management segment
Shift to Adjacent Businesses segment
Red
Green
Blue
Legend
Why now
■ Mandatory from 1 January 2018, with option to early adopt
■ Ready to adopt today
Impact on Aldar financials
■ Subject to contract terms agreed – revenue recognition will be over-time or point-in-time
■ Major impact on off-plan development sales as will predominantly recognise revenue over-time under IFRS 15 versus old IAS 18 revenue recognition based on Aldar contracts
■ Adoption effective from 1 January 2015
■ Therefore AED 54 million adjustment to 1 January 2015 opening balance retained earnings (H1 2015 Financial Statements Note 2)
06 IFRS 15 early adoption and impact
AED millions Q2 2015 Q2 2014 Remarks H1 2015 H1 2014
Revenues 1,106 2,194 2,285 3,913
Direct costs (612) (1,869) (1,193) (3,241)
Gross profit 494 325 1,092 673
Gross profit Margin 45% 15% 48% 17%
SG&A expenses (94) (106) (182) (199)
Depreciation and Amortization (51) (58) (102) (113)
Gain on disposals 6 58 14 58
Share of profit from associates/ JVs 21 17 40 11
Other Income 330 272 478 697
Finance expense (62) (113) (124) (263)
Finance income 21 30 39 69
Fair value losses, provision/ reversal for
impairments(64) 83 (82) 32
Net Profit for the period 601 509 1,172 965
Attributable to:
Owners of the Company 599 506 1,168 959
Non-controlling interests 2 3 4 6
Profit for the period 601 509 1,172 965
Basic and diluted earnings per share (fils) 0.08 0.06 0.15 0.12
Profit and Loss Improved gross profit margins and quality of earnings
07
Lower development revenue given 2014 Gate handovers, partly offset by growth in recurring revenues
Improved margins supported by growth in recurring revenues and higher margins on new development revenues
Q2 2015 includes infrastructure provision reversal and infrastructure recoveries
Significant reduction in interest expense following refinancing efforts over the past 24 months
Net fair value losses taken on short leases in Investment Property portfolio asset and provisions taken
592
75 9 28 36
313
67 25 27 27
353
214
0
200
400
600
800
0
100
200
300
400
500
600
700
Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesses DevelopmentManagement
Property Development
Segmental Gross Profit Performance
AE
D M
illio
ns
AE
D M
illio
ns
795
302
58
438
44
470
289
72
232 122
649
0
200
400
600
800
1,000
1,200
1,400
Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesses DevelopmentManagement
Property Development
Segmental Revenue Performance
AE
D M
illio
ns
AE
D M
illio
ns
Half year 2015 segmentation performance analysis
08
¹ Recurring revenues assets include Investment Properties, Hospitality & Leisure, Operative Villages, Schools (Aldar Academies) and Property & Facilities Management (PFM) (Khidmah) H1 2015 recurring revenues excludes Pivot revenue of AED205m (H1 2014 revenue: AED39m) H1 2015 recurring revenue gross profit excludes Pivot gross loss of AED5m (H1 2014 gross loss: AED9m)
H1 2015 recurring revenues of AED1,388 million (H1 2014: AED 1,024 million) ¹
H1 2015 recurring revenue gross profit of AED707 million (H1 2014: AED 440 million) ¹
2,728
09 Balance Sheet Continued strengthening of balance sheet as collect receivables and pay down debt
AED millions As at 30 Jun
2015
As at 31 Dec
2014Remarks
Property, plant and equipment 3,125 3,200 Decrease due to net depreciation charge partially offset by additions during period
Investment properties 14,679 14,401 Increase principally due to transfer of leased Gate units
Development work in progress 2,965 2,871 Increase due to capex incurred on projects
Inventory 2,081 2,758 Reflects the recognition of cost of sales for units handed over during the quarter and
transfer of leased Gate units to IP
Receivables 6,756 9,619 Mainly reflects the collection of Government of Abu Dhabi receivables
Cash 5,250 4,664 Net increase principally due to collection of Government of Abu Dhabi, partly offset by
debt repayments during the first half
Other Assets 1,047 1,036
Total Assets 35,903 38,549
Equity 18,897 18,373 Net increase due to H1 2015 net profit of AED 1.2 bn, partly offset by payment of
2014 final dividend
Debt 7,098 9,170 Decrease due AED2.1bn repayment of debt during the first six months
Payables, Advances and Other Liabilities 9,908 11,006 Movement principally due to the settlement of contractor payables
Total Liabilities and Equity 35,903 38,549
Net Debt to Equity(excluding restricted cash) 14% 30%
Net Debt to Equity(including restricted cash) 10% 25%
Government transaction cash flows Clear outlook on remaining government receivables
10
¹ Cash collected in H1 2015 ² Cash flow timing depends on handover of related assets ³ Excludes AED0.8bn of on-balance sheet infrastructure recoverables outstanding as at 30 June 2015 (31 March 2015: AED2.0bn). During Q2, payments of 574m and 592m were received in April and June respectively.
ALDAR Government Deals AED millions
Transaction (AED in millions) H1 2015¹ H2 2015 2016 2017 Total H2 2015 – 2017
Sale of F1 Race Track - 348 348 348 1,044
Sale of Al Raha Beach Land and Yas Island Assets ² - - 908 - 908
Sale of Central Market and Units & Infrastructure in Al Raha Beach 1,318 - - - -
Shams Infrastructure Reimbursement & Sale of Gate units ² - - 300 - 300
1,318 348 1,556 348 2,252
■ Total of AED 2.5 billion in total Government receivables collected in first half of 2015:
■ AED 1.3 billion received in relation to Central Market transaction during Q1
■ AED 1.2 billion received in relation to infrastructure recoverables during Q2
Q2 2015 Summary 11
■ Stabilisation of investment property assets
• Investment property assets continue to stabilise and drive better quality earnings
• Yas Mall set to be fully operational by year end
■ Balance sheet continues to strengthen
• Debt strategy on track following further AED1.1bn payment in quarter
• Collection of AED1.2bn in infrastructure recoverables during the quarter
■ Clear development plan in place
• Strong sales performance across projects
• Abu Dhabi real estate market fundamentals remains supportive
Q&A 12
■ Questions?
Development project summary table As at 30 June 2015
13
¹ Sold units includes all units where a sales purchase agreement (“contract”) has been signed. This does not include sales reservations and pending sales contracts.
² Sold units sales value is the total value of the sold unit contracts. This does not include sales reservations and pending sales contracts.
Project Location Recognition Launch date
Sold units ¹
Sold unit sales value (AEDm) ²
Revenue recognition %
Expected completion
Ansam Yas Island Over-time 2014 472 777 4% 2017
Hadeel Al Raha Beach Over-time 2014 211 420 7% 2017
Nareel Abu Dhabi Island Over-time 2015 30 433 49% 2017
Land plot Khalifa City Point-in-time 2015 1 100 100% 2015
Merief Khalifa City Over-time 2015 274 610 0% 2017
Meera Shams Abu Dhabi Over-time 2015 115 159 0% 2018
Land plot Al Raha Beach Point-in-time n/a n/a 908 0% 2016
Total 1,103 3,407 11%
14
795
302
58
438
44
592
75 9 28 35
648
353
0
100
200
300
400
500
600
700
800
900
Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesses DevelopmentManagement
Property Development
New Segmental Performance – H1 2015
AE
D M
illio
ns
(5)
919
285
110 58
17
205
608
72 16 9 4 (5)
692
388
0
100
200
300
400
500
600
700
800
900
1,000
InvestmentProperties
Hotels Schools Operative Villages Leisure Construction Property Dev. &Sales
Old Segmental Performance – H1 2015
AE
D M
illi
on
s
H1 2015 segmental reporting analysis – new and old
Recurring revenues and gross profit of AED1,388 million and AED707 million respectively ¹
Recurring revenues and gross profit of AED1,388 million and AED707 million respectively ¹
¹ Recurring revenues assets include Investment Properties, Hospitality & Leisure, Operative Villages, Schools (Aldar Academies) and Property & Facilities Management (PFM) (Khidmah)
H1 2014 segmental reporting analysis – new and old
15
470
289
72
232
122
313
67 25 27 27
214
0
100
200
300
400
500
600
Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesses DevelopmentManagement
Property Development
New Segmental Performance – H1 2014
AE
D M
illio
ns
564
271
98 72
18
137
331
63 17 25 4 1
232
0
100
200
300
400
500
600
700
InvestmentProperties
Hotels Schools Operative Villages Leisure Construction Property Dev. &Sales
Old Segmental Performance – H1 2014
AE
D M
illio
ns
2,753
2,728
¹ Recurring revenues assets include Investment Properties, Hospitality & Leisure, Operative Villages, Schools (Aldar Academies) and Property & Facilities Management (PFM) (Khidmah)
Recurring revenues and gross profit of AED1,023 million and AED440 million respectively ¹
Recurring revenues and gross profit of AED1,023 million and AED440 million respectively ¹
H1 2015 reclassified segmental reporting explanations
16
Old Segment
H1 2015 (AEDm)
New segment H1 2015 New segmental reporting (AEDm)
Net movement (AEDm)
Explanation
Investment properties
Revenue: 919 Gross Profit: 608 GP margin: 66%
Investment properties
Revenue: 795 Gross Profit: 592 GP margin: 74%
Revenue: (124) Gross Profit: (16)
• Khidmah (P&FM) moved from Investment Properties to Adjacent Businesses. Reported revenue and gross profit is reclassified under new Adjacent Businesses segment.
Hotels Revenue: 285 Gross Profit: 72 GP margin: 25%
Hospitality and Leisure
Revenue: 302 Gross Profit: 75 GP margin: 25%
Revenue: 17 Gross Profit: 4
• Leisure has been absorbed into Hotels segment and renamed Hospitality and Leisure
Schools Revenue: 110 Gross Profit: 16 GP margin: 15%
Adjacent Businesses
Revenue: 438 Gross Profit: 28 GP margin: 6%
Revenue: 328 Gross Profit: 12
• New reporting segment consolidating three adjacent businesses – Schools (Aldar Academies), Property and Facilities Management (P&FM) (Khidmah) and Construction business (Pivot)
Operative Villages
Revenue: 58 Gross Profit: 9 GP margin: 16%
Operative Villages
Revenue: 58 Gross Profit: 9 GP margin: 16%
Revenue: - Gross Profit: -
• No change to segment reporting
Leisure Revenue: 17 Gross Profit: 4 GP margin: 24%
n/a n/a Revenue: (17) Gross Profit: (4)
• Leisure has been absorbed into Hotels segment and renamed Hospitality and Leisure
H1 2015 reclassified segmental reporting explanations (cont’d)
17
Old Segment
H1 2014 Reported (AEDm)
New segment H1 2014 New segmental reporting (AEDm)
Net movement (AEDm)
Explanation
Construction Revenue: 205 Gross loss: (5) GP margin: (2)%
Development Management
Revenue: 44 Gross Profit: 36 GP margin: 80%
Revenue: (161) Gross Profit: 40
• Construction business (Pivot) has been reclassified within new Adjacent Businesses segment in line with group strategy
• Construction segment has been renamed Property management
• Development management fees (ie. Govt projects such as Abu Dhabi Plaza) also reclassified from old Property Development & Sales into new Development Management segment
• National Housing remains unchanged
Property Development and sales
Revenue: 692 Gross Profit: 388 GP margin: 56%
Property Development
Revenue: 648 Gross Profit: 353 GP margin: 54%
Revenue: (44) Gross Profit: (36)
• Development management fees (ie. Govt projects such as Abu Dhabi Plaza) were reclassified into new Development Management segment
Net impact Revenue: nil Gross Profit: nil
• Resegmentation results in nil impact on disclosed revenue and gross profit
H1 2014 reclassified segmental reporting explanations
18
Old Segment
H1 2014 Reported (AEDm)
New segment H1 2014 New segmental reporting (AEDm)
Net movement (AEDm)
Explanation
Investment properties
Revenue: 564 Gross Profit: 331 GP margin: 59%
Investment properties
Revenue: 470 Gross Profit: 313 GP margin: 67%
Revenue: (94) Gross Profit: (18)
• Khidmah (P&FM) moved from Investment Properties to Adjacent Businesses. Reported revenue and gross profit is reclassified under new Adjacent Businesses segment.
Hotels Revenue: 271 Gross Profit: 63 GP margin: 17%
Hospitality and Leisure
Revenue: 289 Gross Profit: 67 GP margin: 23%
Revenue: 18 Gross Profit: 4
• Leisure has been absorbed into Hotels segment and renamed Hospitality and Leisure
Schools Revenue: 98 Gross Profit: 17 GP margin: 23%
Adjacent Businesses
Revenue: 232 Gross Profit: 27 GP margin: 12%
Revenue: 134 Gross Profit: 10
• New reporting segment consolidating three adjacent businesses – Schools (Aldar Academies), Property and Facilities Management (P&FM) (Khidmah) and Construction business (Pivot)
Operative Villages
Revenue: 72 Gross Profit: 25 GP margin: 35%
Operative Villages
Revenue: 72 Gross Profit: 25 GP margin: 35%
Revenue: - Gross Profit: -
• No change to segment reporting
Leisure Revenue: 18 Gross Profit: 4 GP margin: 22%
n/a n/a Revenue: (18) Gross Profit: (4)
• Leisure has been absorbed into Hotels segment and renamed Hospitality and Leisure
H1 2014 reclassified segmental reporting explanations (cont’d)
19
Old Segment
H1 2014 Reported (AEDm)
New segment H1 2014 New segmental reporting (AEDm)
Net movement (AEDm)
Explanation
Construction Revenue: 137 Gross Profit: 1 GP margin: 1%
Development Management
Revenue: 122 Gross Profit: 27 GP margin: 22%
Revenue: (15) Gross Profit: 26
• Construction business (Pivot) has been reclassified within new Adjacent Businesses segment in line with group strategy
• Development management fees (ie. Govt projects such as Abu Dhabi Plaza) also reclassified from old Property Development & Sales into new Development Management segment
• National Housing remains unchanged
Property & Development and sales
Revenue: 2,753 Gross Profit: 232 GP margin: 8%
Property Development
Revenue: 2,728 Gross Profit: 214 GP margin: 8%
Revenue: (25) Gross Profit: (18)
• Development management fees (ie. Govt projects such as Abu Dhabi Plaza) were reclassified into new Development Management segment
Net impact Revenue: nil Gross Profit: nil
• Resegmentation results in nil impact on disclosed revenue and gross profit