Analyst and Investor Update Second Quarter 2013 Results. August 2013

Transcription

1 Analyst and Investor Update Second Quarter 2013 Results August 2013

2 01 Key Highlights Completed the merger with Sorouh AED1.25bn Net Profit, up 200% (Q2 2012: AED418mn) derived mainly from: Unit handovers in Al Bateen, Al Muneera, Al Zeina, Al Ward, Tala Tower and Al Bandar On-going handover of serviced land plots at Al Raha Beach East Steady growth in recurring revenues and operating businesses, up 10% Gain on acquisition of Sorouh Assets Earnings per Share at 23 fils per share Cash position remains strong with AED5.4bn cash and available liquidity AED9.1bn visible contractual cash flows from the Government of Abu Dhabi Shareholders equity up 90% to AED15.5bn (December 2012: AED8.2bn) and Net Debt/Equity reduced to 60% (December 2012: 144%) 2

3 02 Profit and Loss Statement AED millions Q Q Remarks H H Revenue driven by ongoing program of Land and units Revenues 1,262 4,631 delivery at Raha Beach and Tala Tower.Variance due to high 2,886 8,220 program of delivery in 2012 Direct costs (776) (3,872) GP driven by shift in sales mix to higher margin land sales (1,977) (6,610) Gross profit recognised during the quarter 909 1,611 Gross profit Margin 38% 16% 32% 20% SG&A expenses (65) (69) (122) (129) Depreciation and Amortization (95) (112) (192) (220) Mainly share of losses due to reclassification of Abu Dhabi Other Income/ Expense (58) (1) Finance as an associate (40) 2 Finance costs, net (124) (160) Due to lower level of Debt (258) (299) Net Profit before Non-Recurring items Non-Recurring items Project Cost Impairments/write-offs & Fair value Loss DWIP impairment reflecting new zoning restrictions and other (1,483) 0 fair market adjustments (1,483) (69) Gain on Business combination 2,591 0 Please refer to Slide 6 2,591 0 Net Profit for the period 1, , Basic and diluted earnings per share

4 02 Segmental Performance 1H

5 02 Standalone Q Proforma Quarterly Performance AED millions Aldar Sorouh Q Q Q Preacquisition Post Q acquisition Total Revenue 1,030 4, Direct Cost (591) (3,872) (387) (185) (572) (532) Gross Profit Margin 43% 16% 22% 21% 21% 22% Sorouh Key Revenue Drivers: Strong units deliveries due to commencement of Tala Tower handover National Housing tapering off due to near completion of Watani P1&2, Sila & Ghuraibah P1. Note: Acquisition date is May 15, 2013 Only Post-acquisition Sorouh s Revenues and Gross profit are incorporated in Aldar s Q2 results 5

6 02 Purchase Price Allocation (PPA) Fair Value of Assets net of MI AED 8,102 mn - Purchase Price AED 5,511 mn = Gain on acquisition: AED 2,591 mn 6

7 02 Balance Sheet AED millions Aldar Dec-12 Sorouh Post acquisition Remarks (movements other than addition of Sorouh) Property, plant and equipment 3, ,339 Mainly represents impairment on Hotels and depreciation. Investment properties 6,078 4,663 11,126 Development work in progress 4,223 4,565 7,244 Inventory 1,640 1,860 3,142 Receivables 13,337 2,721 13,087 Cash 2,260 1,521 4,664 Other Assets ,075 Increased due to work done on IPUD of AED 788 million (mainly Yas Mall and Shabahat Plaza) offset by AED 403 million of fair value losses. Transfer of Al Bateen and Al Ward projects to inventory on completion. Impairment of ARB West and Cost recognized on land sales. Decreased due to handing over residential units offset by transfer of completed properties from DWIP. Decreased mainly due to collection of AED 2,500 million GAD receivable and AED 250 million ADWEA receivables and certain recoverable impairments Short term deposits and restricted cash of AED 2,134 million and free cash balance of AED 2,530 million. Total Assets 32,041 43,676 Equity 8,180-15,825 Debt 14,014 2,112 14,223 Increase in share capital and premium due to issuance of shares for acquisition of Sorouh, conversion of Mubadala convertible bonds and 6 month s profit offset by dividends paid. Decreased mainly due to repayment of Sukuk AED 3.75 bn during Q2 & net drawdown from the NBAD loan amounting to AED 2.45bn. Payables, Advances and Other Liabilities 9,847 5,276 13,628 Decreased mainly due to reduction in advances as a result of sales recognition Total Liabilities and Equity 32,041 43,676 Net Debt to Equity 144% 60% 7

8 02 Balance Sheet: Strong Asset Base and Declining Financial Leverage (AED bn) Other Assets Cash AED 1.6bn Shams Infra. reimbursement from Government of Abu Dhabi is Off- balance sheet receivable DWIP & Inventory Trade and other receivables PPE & IP Approximately 66% of total is contracted to Government Cash, 4.7 Net Debt, 9.6 Total Borrowings AED14.2bn Total Assets Jun-13 Borrowings Jun-13 8

9 03 Cash still to be received from Government of Abu Dhabi against asset sale agreements (AEDmn) Date Particulars H Total Q2 ' December 2009 Sale of F1 Race Track ,739 January 2011 Sale of Al Raha Beach Land and Yas Island Assets* December 2011 Sale of Central Market and Units & Infra. in Al Raha Beach - 3,500 1, ,818 January 2013 Shams Infrastructure Reimbursement* ,600 1,487 5,259 1, ,107 * Cash flow timing depends on handover of related assets 9

10 02 Cash Flow Statement AED millions Q Q Remarks Cash at the beginning of the period (unrestricted cash) Net cash from/(used in) operating activities 1,009 3,372 3,390 3,282 mainly due to the collection of receivables Net cash from/(used in) investing activities (27) (514) mainly attributable to Capex in Yas Mall offset by net investment in DWIP, increase in restricted bank and term deposits with original maturities greater than three months. Net cash used in financing activities (1,842) (4,630) Cash at the end of the period (unrestricted cash) 2,530 1,510 mainly due to net repayment of existing borrowings, related finance costs and profit distribution on Islamic bonds, and the payment of dividends Short term deposits and restricted balances with banks Cash and cash equivalents at the end of the period 2, ,664 2,460 10

11 04 Synergies Update SG&A Expenses Rationalization of duplicate central functions and corporate expenses Consolidation of office space and management Corporate procurement savings from economies of scale Estimated Impact Status Update Progressing Well Cost Synergies Property Related Services Financing Charges Procurement savings in property related facility management services Optimization of financial charges due to improved credit terms Annual Savings of AED90-110m by 2015 Progressing Well 2.05% interest margin reduction on Sorouh loan facility with an outstanding balance of AED2.1bn IT Platforms Integration of IT platforms Progressing Well Additional Potential Synergies Project Related Expenditures Revenue Enhancement Capital expenditure synergies on future developments by leveraging its scale and expertise in project design, procurement and management Through enhanced portfolio diversification and optimised management of the land bank, the Combined Group will be able to operate more effectively, better phase and sequence new developments, and leverage each Company's expertise to drive revenue growth Medium Term Synergy Potential Planning Progressing Well 11

12 05 Operational Highlights Q Development Projects Investment Properties Residential: Tala Tower: Almost 70% handed-over: 259 of the 375 units. On-track to complete handover in Q The Gate: Building Completion Certificates received for 3 towers Al Ghadeer: Building Completion Certificate received for 200 villas, in first zone to be handed-over to customers Offices: Heads of Terms issued for an additional 2,100 sqm in HQ, once concluded would take occupancy to 82% Retail: Total of 6 new outlets trading in Raha Beach. 2 in Muneera and 4 in Al Zeina Community retail portfolio now 50% leased Retail Developments: Yas Mall: Construction 80% complete and delivery remains on schedule Managed Projects: 3,173 National Housing villas scheduled for handover in Q4: Watani (703 villas), Al Falah (1,000 villas), Sila a (448 villas) and Ghuraibah (1,022 villas) 2,000 villas handed over at Al Falah to the Government of Abu Dhabi Operating Businesses Hotels: Q occupancy across hotels portfolio up at 78% versus 58% in Q

13 06 Conclusion Completed the merger with Sorouh Synergies going well Strategic logic we did in this deal remains strong Financial strength of the combined entity is very evident AED1.25bn Net Profit in Q2 2013, up 200%. Half year Net Profit of AED1.4bn, up 57% & Earnings per share 23 fils per share Cash position remains strong with AED5.4bn cash and available liquidity plus AED9.1bn visible contractual cash flows from Government of Abu Dhabi Higher Equity (up by 90%) and lower leverage (down to 60%) Strong delivery pipeline for the next 12 months with c.7,400 residential units due to be delivered Recurring revenue portfolio will be significantly strengthened through the lease-up of units in alrayyana and The Gate 13

14 07 Q&A 14