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2
CONTENTS
Contents Page(s)
Introduction and highlights 4-5
Development Management 6-9
Asset Management 10-13
Financial Review 14-21
Summary 22
Appendix 23-26
3
Speakers
Greg Fewer, Chief Financial Officer
Talal Al Dhiyebi, Chief Development Officer
Jassem Busaibe, Chief Asset Management Officer
Q2 2016 HIGHLIGHTS
5
Another solid set of results
• Development
• Over AED 1.0 billion in off-plan development sales across
• Aldar developments – AED 940 million
• West Yas – AED 90 million
• Successful restructuring of legacy Shams land sale releasing significant value
• Asset Management
• Addition of Repton school to investment plan
Financial highlights
• Net profit up 9% to AED 654 million
• Revenue up 53% to AED 1.7 billion
• Gross profit from recurring revenue assets up 12%¹ to AED 382 million
• Gross profit up 40% to AED 693 million
¹ Following adoption of IFRS 16 from 1 January 2016, like-for-like increase in gross profit from recurring revenue asset is 8% versus 12% reported
DEVELOPMENT SUMMARY TABLE – 30 JUN 2016
7
¹ Sold units and sold units sales value includes all units where a sales purchase agreement (“contract”) has been signed. This does not include sales reservations and pending sales contracts. Total units and values as at period end are net of cancellations.
• Q2 2016 sales include 294 units worth AED 940 million, driven by Yas Acres and Mayan
• Active development pipeline – over 2,500 units launched since 2014
Project Location Recognition Launch Q2 2016 Total as at 30 Jun 2016 Revenue
recognition %
Expected
completion date Sold
units ¹
Sold unit
sales value
(AEDm) ²
Sold
units ¹
Sold unit sales
value (AEDm) ²
Units
launched
% sold
Ansam Yas Island Over-time 2014 6 15 489 810 547 89% 31% 2017
Hadeel Al Raha Beach Over-time 2014 - - 211 420 233 91% 31% 2017
Nareel Abu Dhabi Island Over-time 2015 2 57 66 878 147 45% 58% 2017
Merief Khalifa City Over-time 2015 - - 281 609 281 100% 0% 2017
Meera Shams Abu Dhabi Over-time 2015 3 4 347 431 408 85% 26% 2018
Mayan Yas Island Over-time 2015 120 224 297 520 512 58% 0% 2018
Yas
Acres Yas Island Over-time 2016 163 640 163 640 392 42% 0% 2018
294 940 1,854 4,308 2,520 74% 23%
Land plot Al Raha Beach Point-in-time n/a n/a n/a n/a 908 n/a n/a n/a 2016
Total 294 940 1,854 5,216 2,520 74%
DEVELOPMENT REVIEW
8
Ansam
• Progress has reached 31%, up from 12% as at 31 December 2015
• 6 further units sold during Q2 2016 – 89% sold overall as at period end
Al Hadeel
• Progress has reached 31%, up from 17% as at 31 December 2015
• 91% sold across development
Al Nareel
• Awarded construction contract for infrastructure, utilities and public areas in July 2016
• 2 further units sold during the quarter
Al Merief
• Awarded construction contract for infrastructure, utilities and public areas in July 2016
• 281-unit land plot development 100% sold out
9
Meera
• Commenced revenue recognition following construction contract award
• Progress stands at 26% as at 30 Jun 2016
Mayan
• 75% sold across 512 units launched to date
• Demand from bulk purchasers – Buildings 4 & 5 fully sold
Yas Acres
• Phase I & II launched – 392 units
• 80% sold across both phases to date
DEVELOPMENT REVIEW (CONT’D)
ASSET MANAGEMENT HIGHLIGHTS
• 98% trading occupancy at Yas Mall
11
Reta
ilR
es
iO
ffic
eH
ote
ls
• 96% occupancy across residential portfolio (30 June 2015: 98%)
• 95% occupancy across office portfolio (30 June 2015: 91%)
• 76% occupancy across hotels portfolio during H1 2016 (H1 2015: 81%)
• No change to AED 1.6 billion recurring revenue NOI guidance for 2016
NOI GROWTH REMAINS A PRIORITY
• Target 40% growth in NOI by 2020 to AED 2.2 billion
• Growth to be delivered through
• Optimization of existing assets
• AED 3 billion investment plan – development to hold assets and opportunistic acquisitions
• AED 1.1 billion now committed to date following announcement of Repton School
12
ALDAR ACADEMIES GROWTH UNDER WAY
• Aldar Academies to open two new schools for 2016/17 academic year
• Al Mamoura
• Fully owned by Aldar – part of AED 3 billion investment plan
• 1,800 student capacity
• 1,000 student capacity rolled out for 2016/17 academic year – 300 of which are transferring from
Al Mushrif School
• West Yas
• 30-year lease agreement to operate school
• 1,800 student capacity
• First Aldar Academies American curriculum school
• 450 student capacity rolled out for 2016/17 academic year
• Aldar Academies student capacity for 2016/17 will increase by 22% to 6,600 student seats
13
EARLY ADOPTION OF IFRS 16
15
IFRS 16 adjustments¹
AEDm31 December
2015Adjustments
1 January
2016
Assets
Investment properties15,570 +331 15,902
Liabilities
Trade and other
payables
8,292 +460 8,752
Equity
Retained earnings8,202 (129) 8,074
¹ See Note 2.1 of the 30 Jun 2016 Financial Statements for full disclosure on impact of IFRS 16 adoption
IFRS 16 impact on balance sheet IFRS 16 impact on profit and loss
• Opening balance sheet adjustments reflecting the
capitalization of right-to-use assets and related
ground rent lease liabilities
• Quarterly increase of AED 15 million in gross profit from
recurring revenue assets as operating costs are now
removed from direct costs
• Fair value loss increase reflecting the amortization of the
right-to-use asset. Increase in finance cost reflecting
unwinding of the interest associated with the new liability
• No cash impact
Q2 2016
AEDmAs per IFRS
16
As per old
policy
Impact due
to change
Recurring revenues 706 706 -
Direct costs (324) (339) +15
Gross profit 382 367 +15
Fair value losses (30) (20) (10)
Finance cost (59) (54) (5)
Net impact -
PROFIT & LOSS
16
AED millions Q2 2016 Q2 2015 Variance
Revenues 1,696 1,106 53%
Direct costs (1,003) (612) 64%
Gross profit 693 494 40%
Gross profit Margin 41% 45%
SG&A expenses (90) (94) -4%
Depreciation and Amortization (52) (51) 2%
Gain on disposals 1 6 -83%
Share of profit from associates/ JVs 16 21 -24%
Other Income 172 330 -48%
Finance expense (59) (62) -5%
Finance income 30 21 43%
Fair value gains/ (losses), provision/
reversal for impairments(56) (64) -13%
Net Profit for the period 654 601 9%
Attributable to:
Owners of the Company 657 579 13%
Non-controlling interests (3) 22 -114%
Profit for the period 654 601 9%
Basic and diluted earnings per share
(AED)0.08 0.07
Shams land transaction
• 8 sold plots returned, 2 plots
immediately resold
• Remaining 6 land plots committed to
balance sheet at fair market value
Shams land transaction– P&L impact:
Revenue: AED524m
Gross profit: AED196m
Other income (loss on cancellation):
(AED50m)
349
11 4 21
309 299
24 3 13 21
135
Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesses Development Management Property Development
Segmental Gross Profit Performance
Q2 2016 Q2 2015
AE
D M
illio
ns
QUARTERLY SEGMENTAL ANALYSIS
¹ Recurring revenues assets include Investment Properties, Hospitality & Leisure, Operative Villages, Schools (Aldar Academies) and Property & Facilities Management (PFM) (Khidmah)
Q2 2016 recurring revenues excludes Pivot revenue of AED179m (Q2 2015 revenue: AED102m)
Q2 2016 recurring revenue gross profit excludes Pivot gross loss of AED19m (Q2 2015 gross loss: AED2m)
Q2 2016 recurring revenues of AED706 million (Q2 2015: AED686 million) ¹
Q2 2016 recurring revenues gross profit of AED382 million (Q2 2015: AED341 million) ¹
17
425
112
28
320
27
783
406
135
29
218
25
292
Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesses Development Management Property Development
Segmental Revenue Performance
Q2 2016 Q2 2015
AE
D M
illio
ns
(1)
Shams land transaction
Revenue: AED 524 million
Shams land transaction
Gross profit: AED 196 million
BALANCE SHEET
18
¹ Adjusted for IFRS 16 adoption effective from 1 January 2016
AEDmAs at
30 Jun 2016
As at
31 Mar 2016
(adjusted)
Variance
Property, plant and equipment 3,000 2,985 1%
Investment properties 15,788 15,798 0%
Development work in progress 2,759 2,795 -1%
Land held for resale 2,178 1,751 24%
Inventory 238 253 -6%
Receivables 5,435 5,617 -3%
Cash 5,571 6,579 -15%
Other Assets 1,056 1,041 1%
Total Assets 36,025 36,819 -2%
Equity 20,628 19,997 3%
Debt 5,953 5,977 0%
Payables, Advances and Other Liabilities 9,444 10,845 -13%
Total Liabilities and Equity 36,025 36,819 -2%
Shams land transaction– net
balance sheet impact:
Receivables: (AED261m)
Land held for sale: +AED393m
Cash: +AED14m
GOVERNMENT TRANSACTIONS
¹ Cash flow timing depends on handover of related assets
² Excludes AED 0.5 bn of on-balance sheet infrastructure recoverables outstanding as at 30 Jun 16 (31 Mar 16: AED 0.4 bn)
19
Remaining cash inflows Remaining P&L events
Transaction (AEDm) H2 2016 2017 Total IncomeOther
incomeTotal
Sale of F1 Race Track 348 348 696 - - -
Sale of Al Raha Beach Land ¹ 950 - 950 544 - 544
Shams Infrastructure Reimbursement ¹ 300 - 300 - 731 731
1,598 348 1,946 544 731 1,275
EXTENDED DEBT MATURITIES
Debt policy
• Operating in line with debt policy to maintain 35-40% LTV against the 100% owned investment properties and
operating businesses
• Gross debt unchanged at AED 6 billion – no further significant pay down of debt expected
Refinancing short term debt – extending tenure of existing debt
• Successful refinancing of AED 1.8 billion with new 5-year, 7-year and 10-year facilities
• New committed loans replace existing loans with longer term bullet maturities that better fits our business model
• Weighted average debt maturity will increase from 2.3 years as at 30 June 2016 to 3.9 years today
20
DIVIDEND POLICY
21
Asset management
business
Development
business
PolicyPay-out factor Distributable free cash flow ¹
+Realised profit
Range 65-80% Discretionary
Methodology/ key
drivers
Net operating income Upon completion of Ansam,
Less: Al Hadeel, Al Nareel, Al Merief,
Interest expense Meera, Mayan and Yas Acres
Maintenance capex
Overheads
• New dividend policy implemented from 2016
• Provides greater transparency and visibility on dividends
¹ Distributable free cash flow from 100% owned investment properties and operating businesses – recurring revenues excluding Khidmah (only 60% owned)
SUMMARY
Strong development sales
• Positive market demand for projects – Yas Acres and Mayan
• AED 1.0 billion sales during quarter
Commitment to recurring revenue growth
• Resilient asset base, no change to guidance
• AED 1.1 billion of investment plan committed to date following Repton school announcement
Strengthened balance sheet
• Restructured long-term receivables
• Gross debt in line with policy – new facilities extend debt maturity
22
BUSINESS OVERVIEW
Development Asset management Adjacent Businesses
Property Development
• Current projects – Ansam, Hadeel,
Nareel, Merief, Meera, Mayan and
Yas Acres
Development Management
• Development management projects
including Abu Dhabi Plaza
Kazakhstan and West Yas
• National Housing Initiative – no active
projects
Retail
• 470,000 sqm GLA across 27 assets
Residential
• 4,800 units across 10 developments
Office
• 204,000 sqm GLA across 7 assets
Hotels
• 2,536 keys across 9 hotels
Other
• Operative villages
Schools
• Aldar Academies – 100% owned
• 6,600 student seats
Property & Facilities Management
• Khidmah - 60% owned
Construction
• Pivot – 60% owned
24
705
47 14 22 53
394
592
75 9 28 36
353
Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesses Development Management Property Development
Segmental Gross Profit Performance
H1 2016 H1 2015
AE
D M
illio
ns
HALF YEAR SEGMENTAL ANALYSIS
¹ Recurring revenues assets include Investment Properties, Hospitality & Leisure, Operative Villages, Schools (Aldar Academies) and Property & Facilities Management (PFM) (Khidmah)H1 2016 recurring revenues excludes Pivot revenue of AED347m (H1 2015 revenue: AED204m) H1 2016 recurring revenue gross profit excludes Pivot gross loss of AED11m (H1 2015 gross loss: AED4m)
H1 2016 recurring revenues of AED1,455 million (H1 2015: AED1,389 million) ¹
H1 2016 recurring revenues gross profit of AED799 million (H1 2015: AED708 million) ¹
25
866
259
66
611
64
1,062
796
302
57
438
43
649
Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesses Development Management Property Development
Segmental Revenue Performance
H1 2016 H1 2015
AE
D M
illio
ns