investor presentation - nov 2007

8/3/2019 Investor Presentation - Nov 2007

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November 5, 2007

Emaar Properties PJSC

Financial and Strategic Update


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www.emaar.comEmaar Properties Third Quarter 2007 Results Presentation Page 1

Disclaimer

Emaar Properties PJSC, for themselves and for Emaar Group, give notice that:

The particulars of this presentation do not constitute any part of an offer or a contract.

Given that the presentation contains information based on forecasts and roll outs, all statements contained in this

presentation are made without responsibility on the part of Emaar Properties PJSC, their advisors, or members ofEmaar Group (including their directors, officers and employees).

None of the statements contained in this presentation is to be relied upon as a statement or representation of fact.

All parties must satisfy themselves as to the correctness of each of the statements contained in this presentation.

Emaar Properties PJSC and members of the Emaar Group do not make or give, and neither members of the EmaarGroup nor any of their directors or officers or persons in their employment or advisors has any authority to makeor give, any representation or warranty whatsoever in relation to this presentation.

This presentation may not be stored, copied, distributed, transmitted, retransmitted or reproduced, in whole or inpart, in any form or medium without the permission of Emaar Properties PJSC.


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Business Highlights

Milestones: Burj Dubai is officially the worlds tallest free-standing structure

S&P Index Inclusion (S&P IFCG Extended Frontier 150 Index)

Emaar MGF started contributing positively to earnings

Emaar Education opened its first school in Dubai

858 units sold in new international project launches

Emaar MGF IPO: Draft Red Herring Prospectus filed in September

Listing expected to be completed in next six months

Transaction with

Bawadi:

Joint Venture with Bawadi (a member of Tatweer) to develop land in a

prime location in Dubai


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Business Highlights

Q3 Sales Status Main InternationalReleases:

Units Released forSale

Number ofUnits Sold

King Abdullah Economic City (Saudi Arabia) 424 324

Uptown Cairo (Egypt) 450 320

The Eighth Gate (Syria) 98 94*

Tinja (Morocco) 74 69

Tuscan Valley (Turkey) 160 51

*Sales commitments received


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Financial Highlights

Millions

9M-2007 9M-2006 % ofchange

AED USD AED USD

Revenue 12,537 3,413 8,458 2,303 48%

Gross Profit 5,115 1,393 4,873 1,327 5%

Net Profit 4,839 1,317 4,658 1,268 4%

EPS (AED/USD) 0.79 0.22 0.76 0.21 4%


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Revenue & Gross Profit Analysis

REVENUE (AED Millions) GROSS PROFIT MARGIN (%)

Q3-2006 Q2-2007 Q3-2007 Q3-2006 Q2-2007 Q3-2007

Land 627 247 215 94% 72% 94%(1)

Villas 660 545 853 58% 45% 71%

Apartments and commercial & rental income 1,291 2,700 2,523 45% 39% 35%

John Laing Homes 801 682 868 19% 5% 7%(2)

Land Sales vs. Property Development Gross Profit(Burj Dubai Development)

Land Sale Developed Properties

GrossProfitinAE

Dpersq.f

t.

Revenue Composition Evolution

Land

WL Homes

Villas

Apartments,

commercial & rental

income

Q3-2006 Q2-2007 Q3-2007

57%

19%

13%19%

38%

65%

24%

16% 19%

19%6% 5%

+ 40%

(1) Excludes AED 291 million (USD 79 million) of reversal of provision for loss in land value in Dubai.

(2) Excludes AED 382 million (USD 104 million) for writedown of development properties of WL Homes.


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Quarterwise Revenue and GP Margin analysis Emaar Dubai(excluding land sales)

0

500

1,000

1,500

2,000

2,500

3,000

Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07

Rev

enue-AEDmillions

0%

10%

20%

30%

40%

50%

60%

70%

80%

GPMargin(%)

Revenue-Apt/comm/rental

income

Revenue from Villas

Gross Margin Excluding Land

Sales (%)

GP Margin-Apt/comm/rental

income

GP Margin - Villas

GrossProfit(AED MM) 799 686 963 1,446 1,097 1,310 1,497


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Quarterwise Sales (UAE only)

4,308

1,332

2,243

3,6073,378

2,5522,069

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07

Sales (AED Millions)


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Financial Performance AED millions

Q307 Q207 % Q306 % 9M07 9M06 %

Revenue 4,459 4,174 7% 3,379 32% 12,537 8,458 48%

Gross Profit 1,666 1,526 9% 1,705 (2%) 5,115 4,873 5%

SG&A (574) (490) 17% (291) 97% (1,536) (798) 92%

Other Income 344 492 (30%) 161 114% 1,085 520 109%

Associates 118 23 413% 52 127% 168 100 68%Income Tax (5) (3) 67% (32) (84%) (16) (43) (63%)

Minority Interest 11 10 10% 10 10% 23 6 283%

Net Profit 1,560 1,558 - 1,605 (3%) 4,839 4,658 4%

EPS (Basic) 0.26 0.26 - 0.26 - 0.79 0.76 4%

Note 1: 3Q 2007 Gross Profit includes an inventory write-down of AED 382 million at WL Homes and an AED 291 million reversal of provision for impairment loss of land in Dubai


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50/50 JV with Bawadi

Project Details

AED 60 billion project to have a theme park, 6 hotels, a

shopping mall, luxury homes and multiple business hubs

18,000 residential units

2.7 million square feet of commercial space

3.2 million square feet of retail space

6 hotels with 5,150 rooms and 1,200 service

apartments

70 million square feet of land in Bawadi (Dubailand), a prime

location in Dubai

76%(1) increase to our available land bank in Dubai

Project to be completed in 7 to 10 years

Master-planning is expected to be completed in six months

Project Location Part of Dubailand, the Bawadi project is located adjacent

to Arabian Ranches and the Greens

(1) Assumes 100% of land is attributed to our share; our 50% proportionate share of the JV would imply a 38% increase to our Dubai land bank.


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50/50 JV with Bawadi

Key Terms

Joint Venture Governance

Equal representation on the board

Chairman of the board to be appointed by Emaar

Emaar to manage the JV through a management and

technical services agreement

Bawadi to contribute approximately 70 million square

feet of land valued at AED 3.85 billion

Emaar to contribute AED 3.85 billion in cash to be paid

over the construction period to finance project build Depending on project phasing, Bawadi will transfer

corresponding land rights and Emaar will contribute its

equivalent portion of cash to the joint venture

Financial Impact of the Transaction

Equity accounted by Emaar

JV to follow same accounting standards as Emaar

Emaar cash contribution phased over the expected

completion period of the project (7 to 10 years)

JV self funded post Emaar cash contributions (no

additional equity investment required)

Pre-sales funding model expected to apply for the

project

Sales to start in 2008 and positive contribution to

Emaar net profit expected in 2009

At least 15% compounded annual rate of return

expected


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Q4 2007 Project Launches

India - Palm Drive at Gurgoan,

- Villas at Mohali,

- Esplanade at Chennai

KSA - Jeddah Gate by Emaar Middle East

- Villas by Emaar the Economic City

Egypt - Marassi

Dubai - Armani Residences in Burj Dubai Tower


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Financial Guidance

4Q 2007Guidance:

Gross margins in Dubai to remain robust in line with previousquarters

Net profit from normal operations to be in line with the Q3

2007

InternationalOperations:

Plans to launch an increasing number of internationalprojects in 2008

Earnings contribution from most of the international entitiesexpected to start by H2 2008.


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Q&A


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Appendix


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Revenue & Gross Profit Breakdown

Revenue - 9M 2007

11%

15%

59%

15%

LandVillasApartments, commercial & rental incomeJohn Laing Homes

Revenue - 9M 2006

28%

25%

33%

14%

REVENUE (AED Millions) GROSS PROFIT MARGIN (%)

9M-2006 9M-2007 9M-2006 9M-2007

Land 2,352 1,334 94% 87%(1)

Villas 2,131 1,892 57% 56%

Apartments,commercial & rentalincome

2,813 7,373 44% 38%

John Laing Homes 1,162 1,938 18% 7%(2)

(1) Excludes AED 291 million (USD 79 million) of reversal of provision for loss in land value in Dubai.

(2) Excludes AED 382 million (USD 104 million) for writedown of development properties of WL Homes.

investor presentation - nov 2007

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