Emaar Properties PJSC

Citis MENA Equities Conference

Dubai
November 28th & 29th, 2007

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 of Emaar 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 Emaar Group nor any of their directors or officers or persons in their employment or advisors
has any authority to make or 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 in part, in any form or medium without the permission of Emaar Properties PJSC.

Agenda

EMAAR at a Glance

Investment Highlights

Operations Overview

Financial Performance

Outlook

Emaar at a Glance Vision, Mission & History

Our vision is to transform Emaar into one of the most valuable companies in the world by 2010.
Our mission is to deliver world-class products and services, not merely in property development,
but in every chosen business activity.
1997

Incorporation of EMAAR

1998
1999

H H. Sheikh Mohammed bin Rashid Al Maktoum grants land to EMAAR

Construction of Emirates Hills and Dubai Marina begins

2000
2001

Listing on the DFM; Creation of Amlak Finance

Strategy evolves from selling serviced land to constructing residential units

2002

Sheikh Mohammed grants new land; first residents move into Emirates Hills &
Dubai Marina
Development of Arabian Ranches, a master-planned community, launched

2003
2004

Commencement of Burj Dubai construction work

2005
2006

Launch of King Abdullah Economic City project in Saudi Arabia

Launch of new projects by Emaar International, acquisition of John Laing Homes,
Hamptons, Turner Middle East & Raffles Campus and Emaar the Economic City lists on
Tadawul Stock Exchange

2007

Acquisition of RSH jointly by Emaar and MGF to enter the Indian retail sector;
Acquisition of the remaining 60% shares in Emaar Misr, Sales launches in international
markets, Joint venture with Bawadi (member of Tatweer).

Emaar at a Glance Where We Are Today

The largest publicly-listed property developer in the
MENA region
AED77 bn (US$21 bn) market cap (1), 17% weighting of DFM
Revenues of AED 12.5 bn (USD 3.4 bn) for nine months to
Sept. 2007 and AED 14.0 bn (USD 3.8 bn) in 2006
19,300 residential properties delivered since 2001
Approx. 250,000 sqm of recurring revenue generating
properties
4 hotels (912 keys) and 318 serviced apartments
504.9 million square meters of Land Bank(2)
Large land parcels at competitive pricing in UAE, India, KSA,
Morocco, Pakistan, Syria, Turkey, Egypt, Jordan, Libya &
Indonesia
AED 154 billion(3) (USD 42 billion) of projects over the next 4
years, of which AED 115 billion are international projects

NAV/Share of AED 11.58 (as of December 2006)

(1)

As of 26/11/2007.
Data indicated is as of August 31, 2007 and includes land of the JV with Bawadi, but excludes Algeria.
(3) Excluding development costs of the JV with Bawadi, Algeria, Libya, Canada, Indonesia and USA.
(2)

Emaar at a Glance Strategy

Focus on execution

Ensure timely delivery of domestic and international projects

Extend successful Dubai business model and practices to international markets
Integrate newly acquired competences in design (John Laing Homes), project management
(Turner) and distribution/sales (Hamptons)

Consolidate dominant position in the domestic market

16.8* million square meters of land available for planned construction activities
Additional 6.5 million square meters of land bank in Dubai through the JV with Bawadi
Influence market supply through significant scale
Diversify sources of revenue

Approx. 60-70% of revenues from international operations by 2010E

Generate 12-15% of Net Profit from recurring streams (hotels, serviced apartments and retail
properties) by 2010E (versus 1.5% in 2006)

Expand into education and healthcare in the MENA and Indian subcontinent regions
Target minimum IRR of 15% on non-property development projects
Limited Funding by parent company

Limit Emaar financing to land acquisition and initial infrastructure related construction
Finance at project level Pre-sales, Project based debt financing and IPO/Strategic sale
* Includes land in Umm Al Quwain and without the land of the JV with Bawadi

Emaar at a Glance A Model for Value Creation

A Proven Business Model

With Limited Funding Requirement

Example of a Recent Dubai-based Project Financing

Infrastructure & Construction Cumulative Cost

Community /
Lifestyle
Development

Cumulative Pre-selling & Payment Received

600

495
500

Significant
Land at
Competitive
Prices

AED Millions

C
e
lu
Va

on
i
t
rea

Retail,
Education
and
Healthcare

Strong
Government
/ Partner
Support

396
400
347
185
200
100
0

Growth
Markets

272

300
116
48

308

269
158

70

0
Start

6 months 12 months 18 months 24 months 30 months

Project Life Cycle

Market Selection

Local
Partnership

Land Acquisition Hi-End Property

Development

Community
Amenities

Total Project Cost = AED 347 m

Only 8% to be financed in the 1st year

Investment Highlights

Investment Highlights
We operate in rapidly
growing and developing
markets

Our domestic market remains very attractive

Significant land bank available in Dubai
Our target international markets benefit from
Attractive demographics (economic and population growth)
Low competition

We are best placed to

take advantage of this
growth

We are successfully
deploying our strategy

Our scale, financial strength, reputation and expertise allow us to

secure large parcels of land at competitive pricing

We partner with local governments / major local players

We have an experienced and highly qualified management team
Recent acquisitions provide synergies in designing (John Laing
Homes), project management (Turner) & distribution (Hamptons)

We have a proven track

record

Successfully launched and sold projects internationally

Track record of delivering properties to our customers
Track record of creating value for our shareholders

Taking Advantage of Growing Untapped Markets

International GDP/Capita Growth vs. Population Growth
6%

Our domestic
market

Expected Population Growth (CAGR 20052008E)

5%

4%

UAE

Average Emaar
Countries

Our target
international
markets

3%

3.8%

1.0%

Western Europe

7.4%

0.3%

Eastern Europe

14.9%

-0.1%

Libya

Pakistan
Turkey

USA

1%

Western
Europe

India
Indonesia

Eastern
Europe

Morocco
China

France
Italy

UK

Croatia

0%
Germany

Czech
Poland

Serbia

Hungary

Bulgaria

-1%
0%

2%

4%

6%

8%

10%

12%

14%

16%

Expected GDP/Capita Growth (CAGR 20052008E)

Source: IMF World Economic Database (October 2007)

18%

CAGR
05 - 08E

US

Egypt
Algeria

CAGR
05 - 08E

2.1%

Jordan
2%

Population
Growth

12.0%

Syria

KSA

GDP/Capita
Growth

20%

22%

24%

Our Domestic Market Remains Very Attractive

Dubai Population and Tourists / Visitors

Housing Demand / Supply Dynamics (20072010E)

In Millions

Shortfall
6,000 units

Source: Various

Based on Dubai Public Authorities Report

Average price per sqft of

saleable area

3,500

AED per sqft.

3,000
2,500
2,000
1,500

:
GR
A
C 43%
+

:
GR
CA 5%
+2

:
GR
CA 2%
+2

2004
2005
2006

1,000

2007*

500
Villas

* As of Sept 2007

UAE Quarterly Sales (excluding land)

Apartments

Hotels / Furnished
Apartments

AED Millions

Selling Prices Evolution in Dubai

Attractive Land Bank Secured at Competitive Valuations

Land Area

Fair Value and Book Value of Land

%
43
4
)
R:
06
G
0
CA 04-2
0
(2

Total:
41,182
AED in Millions

Square Meters in Millions

Total: 505

CA
V
F

Excludes land value in

India and AED 3.85 Bn
of land through the JV
with Bawadi

0%
:5
R
G

Total:
14,057

Includes
6.5 m sq.mtrs
of land through
the JV with
Bawadi

Valuation of land in India cannot be disclosed due to

regulatory restrictions related to the current IPO process
Notes:
1. The above includes land held by associated companies and takes into account 100% of the land in each country (not proportionate data).
2. In 2005, the fair value of land does not include the value of land with associated companies as the valuation was not carried out. In 2006, valuation has not been carried out for land
In Libya.
3. FV= Fair Market Value; BV= Book Value; Fair value assessment of land is undertaken on a yearly basis only

Strong and Influential Strategic Partners

Country

Partner

Background

UAE

Bawadi

Saudi Arabia

SAGIA

Government authority

Al Oula

Leading real estate company in Saudi Arabia

MGF

One of India's largest real estate developers

India

Morocco

ONA Group

Pakistan

Haji Rafiq
Defense Housing Authority

Jordan

Member of Tatweer

Morocco's largest conglomerate with

influential shareholders
Principal of a large construction co. (Giga)

King Abdullah II Fund for Development

Syria

Invest Group Overseas

Turkey

Atasay

Libya

Zowara-Abou Kemash Development Zone

Indonesia

Perusahaan Pengelola Aset (PPA)

Government authority

Government backed fund

Strategic JV with elite group of Syrian
business leaders

Turkey's largest jewelry exporter

Libya's leading development zone
Government-owned asset management co

Experienced & Highly Qualified Management Team

Board of Directors
Chairman: Mohamed Ali Alabbar

Ayman Hamdy

Vice Chairman: Hussain Al Qemzi

VK Gomber

Company Secretary
& Director Legal

Group CEO

Low Ping
Executive
Director Finance
& Risk

Ahmad Thani
Al Matrooshi
MD, Emaar Dubai

Amit Jain
CFO Emaar Dubai

Issam Galadari
Managing Director
Emaar International

Alex Andarakis
Executive Director
Sales & Marketing

Yin Cheng
Arif Amiri
Tom Bartridge
Other
Director
Director Investor Executive Director
Businesses
Relations, Corporate Human Resources Communication
Governance &
(international)
Business Development

Richard Rodriguez
CEO Emaar Dubai
Rashid Doleh CEO Malls
Boon Yew Ng CEO Education

Chairman: Mr. Mohamed Bin Ali Alabbar is the Founding

Member and Chairman since the Companys inception in
July 1997. Mr. Alabbar is the Director General of the Dubai
Department of Economic Development, and is a member of
the Dubai Executive Council.
Vice Chairman: Mr. Qemzi is a seasoned banking
professional with over 20 years experience working with the
leading banks in the UAE. He is Group Chief Executive Noor
Investment Group (NIG) and CEO of Noor Islamic Bank a
subsidiary of NIG, a newly established bank.

Marc Dardenne CEO Hospitality and Emaar Hotels & Resorts

Omar Shunnar Executive Director Healthcare

Group CEO: Mr. VK Gomber has wealth of experience

in diverse fields of business and, as former COO of
RSH Limited, is credited with transforming RSH into a
pan-Asian retail giant. A Harvard Business School
alumnus, he did a Program for Management
Development from the prestigious institute in 1992.

The above is only the key people at the group level, kindly refer to our website www.emaar.com for full management structure and profiles.

We Have Successfully Extended our Business

Practices to International Markets
Cumulative Sales Since Launch
Units Released
for Sale

Number of
Units Sold

3,648

2,425

Saudi Arabia (King Abdullah Economic City)

424

324

Morocco (Tinja and Amelkis II)

381

293

Egypt (Uptown Cairo)

450

320

The Eight Gate (Syria)

98

94(2)

Turkey (Tuscan Valley)

160

51

India (Emaar MGF)(1)

(1) As per information in the DRHP (Aug 2007)

(2) Sales commitments received

Strong Record of Execution & Value Creation

Track Record of Delivering Properties

Track Record of Creating Shareholder Value

Cumulative Number of Delivered

Residential Units

Net Profit Evolution

Total Assets Evolution

20,000

7,378

15,000

12,918

8%
R: 5
CAG
06)
2-20
0
0
2
(

7%
R: 8
CAG
)
2006
2
0
(20

AED Millions

16,192

AED Millions

19,300

5,965

4,870

10,000

6,943

Return on Assets

Return on Equity

11,922
5,000

3,335

10,227

28%

21%

8,048

23%

23%

17%
15%

2004

2005
Villas

(1)
(2)

As of September 2007
Based on annualized net income

2006

2007

Apartments

(!)

8%

9%

2002

2003

20%
14%
Percentage

Percentage

3,608

2004

2005

2006

9M
2007 (2)

9%

2002

11%

2003

2004

2005

2006

9M
2007 (2)

Operations Overview

Property Development: UAE

UAE Highlights

Support and trust of the Dubai Government

Strong brand name

Leverage on strong track record of timely

deliveries of high quality developments

Announced 7 major developments that

comprise 107k freehold units (including JV
with Bawadi); 34k are developed or under
development
9 86% of our developed and underdevelopment properties are sold

Average Gross Margin of:

9 35%-50% - Apartments and
Condominiums
9 45%-60% - Villas

Total development cost in UAE estimated at

AED 39 billion in the next 4 years(2)

UAE Land Bank

Unsold Land as of Aug 2007 (1)
Development
Emirates Living

GLA
(000 Sq.m)

% of UAE land
bank

1,160

5%

201

1%

Arabian Ranches

1,163

5%

Burj Dubai

1,427

6%

64

0%

LUsailly

4,513

19%

Umm Al Quwain

8,330

36%

Bawadi

6,500

28%

23,358

100%

Dubai Marina

Others

Total

(1) 100% of unsold land (not proportionate for Umm Al Quwain and JV with Bawadi)
(2) Excluding development costs of projects to be developed by the JV with Bawadi; development costs will be recalculated after the master planning process
Note: GLA = Gross Land Area

Property Development: UAE

Bawadi
Landmark commercial
and residential
development

Centered around the

tallest tower in the
world

Effective ownership

Emirates Living

Residential lifestyle

Residential lifestyle
community
(Villas + Apartments)

community (Villas)

Total
Freehold
Units

Projects

50/50 JV with Bawadi

Residential lifestyle
community
(Villas)

Residential lifestyle
community
(Apartments)

of 37.8% by Emaar

LUssailly

Theme park, green

spaces, hotels, shopping
malls, luxury homes
and business hubs

Residential lifestyle
community
(Villas + Apartments)

% Units

% Units Under

Construction Dates

Developed

Development

Beg.

Compl.

% of
% of revenue
Freehold
Recognised
Units Sold (1) as of Sept-07

Burj Dubai Development

28,064

8%

32%

2003

2014

72%

15%

Arabian Ranches

4,195

75%

23%

2002

2010

97%

74%

Dubai Marina

(2)

5,021

40%

60%

1998

2009

83%

52%

Emirates Living (excl. land)

14,020

86%

14%

1998

2009

95%

79%

168

100%

2001

2003

100%

99%

L'Ussailly

29,583

2009

2018

Umm Al Quwain Marina

8,354

3%

2007

2013

47%

JV with Bawadi

18,000

2008

2015/18

107,405

22%

17%

Emaar Towers

Total

(1)Units sold as a percentage of developed and under-development units (as of Sept 2007).
(2)Represents projects undertaken by Emaar, which corresponds to 17% of the total developable area of Dubai Marina.

86%

50/50 JV with Bawadi - Project Overview

Project Location

Part of Dubailand, the Bawadi project is located

adjacent to Arabian Ranches and the Greens

Project Details

AED 60 billion project to have:

18,000 residential units
250,000 square meters of commercial space
297,000 square meters of retail space
6 hotels with 5,150 rooms and 1,200 service
apartments

6.5 million square meters 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

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

50/50 JV with Bawadi Transaction Overview

Key Terms

Bawadi to contribute approximately 6.5 million

Financial Impact of the Transaction

Equity accounted by Emaar

square meters 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

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

Joint Venture Governance

(no additional equity investment required)

Pre-sales funding model expected to apply for

Equal representation on the board
Chairman of the board to be appointed by Emaar

the project

Sales to start in 2008 and positive contribution

to Emaar net profit expected in 2009

Emaar to manage the JV through a management

and technical services agreement

At least 15% compounded annual rate of return

expected over the project period

Property Development: India

Land Reserves Locations

Land Reserves by City

Emaar MGF Land Reserves
(In Acres

City

Chail
Jalandhar

Mohali
Dehradun

Ludhiana

Ghaziabadi
Delhi

Gurgaon

Jaipur

Lucknow

Shillon
g

Gurgaon
Mohali
Delhi
Dehradun
Pune
Hyderabad
Other
Total

2,808
2,775
1,313
1,129
520
510
3,489
12,544

Indore
Kolkata
Alibaugh

Pune

Emaar-MGF Land
Reserves as of
Aug 2007

Acres

Est.
Developable
Area
(m sq. ft.)

Est.
Saleable
Area
(m sq. ft.)

Owned

6,668

380

380

Sole development
rights

4,545

136

122

MOU/acceptance
letters/agreements to
sell & purchase

1,320

42

39

Joint development
with partners

11

12,544

559

542

Hyderabad

Goa

Mangalore
Chennai
Mysore

Kochi

Coimbatore

TOTAL

Property Development: India

Projects Overview

Emaar-MGF IPO

Land reserves of 12,544 acres expected to provide:

134.9 million sq. ft of plotted residential development

(incl. built up villas) and 300 million sq. ft of built up
residential properties

Emaar-MGF is currently owned by Emaar

at 42%

Draft Red Herring Prospectus filed for IPO in

Sept. 2007

IPO expected over the next 6 months

9 Currently developing 17 m sq. ft comprising of

6,440 residential units in 8 projects in Mohali,
Hyderabad, Gurgaon, Chennai and New Delhi
2,425 units sold as of Aug. 2007

Summary Income Statement

86.6 million sq. ft. of commercial properties

17 million sq. ft. of retail properties
9 Currently developing 1 retail project in Mohali with
saleable area of 0.50 million sq. ft

29 hotels with a total of 5,225 keys

9 Partnerships with Accor, Premier Travel Inn,
Intercontinental Hotels, Marriott & Four Seasons

9 Currently developing 5 hotels with 1,100 keys

(In AED Millions)

FY ended March
2007

3M ended June
2007

Total Income

16

180

Profit (Loss)
Before Tax

(63)

73

Net Profit

(43)

47

Net Margin

NS

26%

Saudi Arabia King Abdullah Economic City

Overview

Development of a new city. More than AED 100 billion development over a total area of 168 million
square meters strategically located near to Jeddah and the holy city of Makkah

Emaar the Economic City (EEC), the developer is a Tadawul listed company which is owned 31% by
Emaar, 39% by other founding shareholders and 30% by public investors
Financing Strategy

Promoters investment of SAR 5.95 billion

SAR 2.55 billion raised in IPO in 2006
Current business plan anticipates no future
equity investment from Emaar in EEC for the
next 5 years

Development

63.5 million sq.m. Industrial Zone

13.8 million sq.m. Sea Port
3.3 million sq.m. Central Business
District

Education zone to accommodate

45,000 students

250,000 apartments and 25,000 villas

25,000 hotel rooms (120 hotels)
424 units released for sale in Q3-2007
324 are sold

Property Development: Saudi Arabia

Jeddah Gate

Mixed used development close to the center of Jeddah

Al Khobbar Lakes

Residential community including schools, lakes and

parklands

Projects

Emaar
Ownership

Number of
Units
for Sale

Number of
Units
for Rentals

Construction Dates
Beg.

Compl. (e)

Al Khobbar Lakes

61%

3,800

---

2007

2012

Jeddah Gate

61%

1,899

264

2007

2012

Jeddah Hills

61%

Under master planning review stage

Total Project Cost for Al Khobbar Lakes and Jeddah Gate is AED 10.4 billion

Property Development: Egypt

Uptown Cairo

4.5 million square meters of luxury development with a golf course in the heart of Cairo
Sales launched at average prices of AED 2.8 m for villas, AED 1.8 m for townhouses,
and AED 1.3 m for apartments
Cairo Gate

A residential-cum-commercial district comprising a mega shopping mall, hotels and

residential units located on the beginning of Cairo-Alexandria Road
Marassi

A golfing resort and residential development on the most attractive location on the
Mediterranean close to Alexandria and El Alamein
New Cairo City

An upscale residential community of several unique villages and featured amenities

Projects

Emaar
Ownership

Total
Project
Cost
AED m

Construction Dates
Beg.

Compl. (e)

Total
Freehold
Units

Total
Freehold
Units
Released
for Sale

Total
Freehold
Units Sold

Uptown Cairo

100%

7,193

2008

2014

7,384

450

320

Marassi

100%

9,333

2008

2015

7,390

Cairo Gate

100%

Under master planning review stage

New Cairo City

100%

Under master planning review stage

Property Development: Morocco

Saphira
Urban beachfront development located on the Rabat Corniche
Bahia Bay
Residential golfing community located mid way between Rabat and Casablanca under
JV with ONA
Oukaeimeden
Mountain residences located at 50 minutes drive from Marrakech
Amelkis II and III
Residential golfing complexes in Marrakech developed under JV with ONA
Tinja
Riviera living community located close to Tangiers, offering a mix of high quality
residential and commercial space

Projects

Selling prices for launched units start at AED 1.5 m for townhouses and AED 2.3 m for villas
Total
Total
Total
Freehold
Total
Emaar
Construction Dates
Number
Number
Units
Freehold
Ownership
Units for
Units for
Released Units Sold
Sale
Rental
Beg.
Compl. (e)
for Sale

Amelkis II

50%

2005

2008

310

307

224

Amelkis III

50%

2006

2009

440

Bahia Bay

50%

2007

2014

2,730

Saphira

100%

2008

2013

16,500

7,300

Oukaeimeden

100%

2008

2016

3,500

1,250

Tinja

100%

2007

2013

2,950

840

74

69

Total Development cost in Morocco is AED 24 billion

Property Development: Jordan, Syria & Turkey

Jordan

Dead Sea Golf and Beach Resort A 400 acre community on the Dead Sea
Syria

The Eight Gate Residential, commercial and retail development in Yafour, 15 minutes from Damascus
Prices per unit range from AED 1.0 m to AED 7.3 m
Turkey

The Lakeside, Istanbul Located in the Western part of Istanbul, covering 1.3 million square meters
Sales started at an average selling price of AED 7,340 per square meter

Projects

Emaar
Ownership

Beg.

Compl. (e)

Total
Number
Units for
Sale

Construction Dates

Total
Number
Units for
Rental

Total
Freehold
Units
Released
for Sale

Total
Freehold
Units Sold

Jordan - Dead Sea Development

37%

2007

2011

1,042

482

Syria - Eighth Gate

60%

2007

2011

1,012

1,338

98

94*

Turkey - Tuscan Valley

60%

2006

2010

555

146

46

*Sales commitments received

Property Development: Pakistan

Mixed Use Development Karachi

108 Acre development featuring high-mid rise towers, shopping

center and 5 star beach hotel
Master Planned Communities - Islamabad

2 projects featuring luxury villas, apartments, retail center,

community clubs, parks and schools

Projects

Mixed Use Development - Karachi

Master Planned Communities - Islamabad*

Beg.

Compl. (e)

Total
Project
Cost
AED
million

67%

2007

2015

5,021

5,388

66.6%**

2006

2015

4,106

4,535

Emaar
Ownership

Construction Dates

* Includes units planned on 900 acres of the total land of 2,500 acres
** Economic ownership of 47%

Number of
Units for
Sale

Number of
Units for
Rental

Property Development: USA John Laing Homes

Activity

Homebuilding operations covering the needs of the entire spectrum of homebuyers (simple to luxury)
9 Land acquisition and development.
9 Design and marketing.
9 Sales and construction of single-family homes and condominiums.
Recent Performance

We continue to monitor the US operations closely and are taking steps to streamline cost structure
and realize synergies between businesses:
9 Architectural design expertise used across all global Emaar projects.
9 Transfer of management expertise - CEO Emaar Dubai & CEO Emaar MGF (Residential) from
John Laing Homes; development staff transferred to UAE and international businesses.

Continued weakness in the US real estate market has impacted the financial performance of John
Laing Homes.

AED 382 million inventory write down in Q3 2007 (5.5% of total assets).

Retail (Emaar Malls)

Emaar Malls pursues a strategy to Build, Own and Operate (Lease) retail facilities in and around
Emaar community developments throughout the MENA region and the Subcontinent (excluding India)

Current and under-construction facilities include Street-Front retail, Strip Malls, Community Centers,
Regional Malls and Super-Regional Malls
9 Dubai Mall, a super-regional mall, is one of the largest mall in the world with GLA of over 3.5
million sq. ft.
9 8.3 million sq. ft. of retail space by 2011 in UAE
9 4.9 million sq. ft of retail space is under development in international markets
9 Emaar Malls is targeting to develop over 150 million sq. ft. of Gross Leasable Area within the
next 10 years, primarily in the MENA and Subcontinent regions
Emaar Malls Gross Leasable Area in Dubai (1)

Total GLA
(Sq. Ft. in Millions)

8.3

(1) As of Sept 2007

0.8

0.9

Existing

2007(e)

4.6

5.0

2008(e)

2009(e)

2011(e)

Emaar Hospitality Group

The Emaar Hospitality Group owns and operates luxury hotel properties and serviced residences in and
around Emaar communities in the MENA region and the Subcontinent
9 4 hotels (912 rooms) and 318 serviced apartments are operational already
9 3 hotels (642 rooms and 1,517 serviced apartments) are under construction in Dubai
9 2 golf courses, 1 polo club and a yacht club (Total investment of AED 4.6 billion)

Properties are either managed in-house or managed by leading hotel operators (e.g. Sofitel)
A number of serviced apartments are sold to finance construction
Capacity
Current Projects

Management Company

Dubai
Burj Dubai Lake Hotel
Al Manzil *
Qamardeen *
The Palace *
Dubai Mall Hotel
Dubai Marina Mall Hotel
Nuran Al Majara Residences *
Nuran Greens Residences *

Emaar Hospitality
Southern Sun
Southern Sun
Sofitel
Emaar Hospitality
Emaar Hospitality
Emaar Hospitality
Emaar Hospitality

International
Hyderabad International Hotel * AAPC (Thailand)
* Currently operational

Rooms

Serviced
Apts

Operational

5 star
4 star
4 star
5 star
5 star
5 star
-----

198
197
186
242
244
200
-----

626
------449
442
90
228

2008
2006
2006
2007
2008
2008
2005
2005

5 star

287

---

2006

Category

Emaar Hotels and Resorts

The Hotels and Resorts division plans to develop, own and operate Armani branded hotels in major
international cities (New York, Shanghai, London, Paris, Milan, Dubai, and Moscow)

Emaar is fully responsible for real estate, construction, management and operations, while Armani
oversees all aspects of content, design and style, including interiors and amenities

The hotel and resort division is planning to open at least 7 luxury hotels and 3 vacation resorts over the
next ten years at an expected investment of AED 3.7 billion

Current / Under Construction Hotels

Burj Dubai:

150 rooms & 144 serviced apartments

Expected to be operational by 2009

Milan:

Construction due to start before end 2007

82 rooms and 30 service apartments
Expected to be operational by 2009

Education and Healthcare

Education
As part of its strategy to develop a high quality lifestyle community, Emaar Education will build, own and
operate primary and secondary schools in and around its development communities

Emaar acquired Raffles Campus to gain expertise in the education sector

Currently Emaar is planning to build 7 schools and 5 nurseries, primarily in Dubai
First school opened in Dubai in Q3 2007
Announced University of the Arts to promote arts education in the MENA region and the Subcontinent
Total investment estimated at AED 290 million

Healthcare
As part of its strategy to develop a high quality lifestyle community, Emaar Healthcare will build, own
and operate clinics and healthcare facilities in and around its development communities

MOU with Amanah Capital to develop specialist healthcare facilities in Abu Dhabi
Four clinics under development in Emaar communities in Dubai

Financial Highlights

Key Performance Indicators

Revenue

Gross Margin
57%

14,006

42%
Percentage

AED Millions

0%
R: 8
G
A
C
6)
-200
2
0
0
(2

50%

48%

12,537

8,361

5,246

41%

28%

3,721
1,335
2002

2003

2004

2005

2006

2003

Operations vs. Investment Cash Flows

6.1

2.9 3.0

6.7

3.2 3.1

2.9

8,000
Including AED
9.1 Bn of
acquisitions and
investments in
associates
3.8
2.7

AED Millions

AED Billions

Investing Activities

2005

2006

9M 2007

Net Income and EPS

11.4

Cash Flow from Operations

2004

9M2007

1.05

1.05(3)

0.78

6,000

0.8

4,000
0.28
2,000

0.09

0.11

2002

2003

0.4

2003

2004

2005

2006

9M2007

1.2

AED

2002

2004

2005

Net Income

2006

9M 2007

EPS(2)

(1) Gross profit for Q3-2007 includes AED 291 million (USD 79 million) of reversal of provision for loss in value of land in Dubai and AED 382 million (USD 104 million) for writedown of
inventory of WL Homes.
(2) EPS for the years 2002 2005 have been restated to give effect for the rights and bonus issues declared during 2005.
(3) Annualized EPS

Revenue & Gross Profit Breakdowns

Revenue Composition Evolution

Land Sales vs. Property Development Gross Profit

(Burj Dubai Development)
Gross Profit in AED per sq.ft.

19%

6%

5%

16%

19%
WL Homes

13%

24%

Land

19%

+ 40%
Villas

19%
Apartments,
commercial & rental
income

65%

57%

Q2-2007

Q3-2007

38%

Land Sale

Developed Properties

Q3-2006

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%

1,291

2,700

2,523

45%

39%

35%

801

682

868

19%

5%

7%(2)

Apartments and commercial & rental

income
John Laing Homes

(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 (inventory) of WL Homes.

Revenue & Gross Margin Analysis

(Emaar Dubai excluding Land Sales)

80%

3,000

Revenue-Apt/comm/rental income
70%
60%
Revenue from Villas
2,000
50%
40%

1,500

GP Margin (%)

Revenue-AED millions

2,500

Gross Margin Excluding Land Sales (%)

30%
1,000
20%
GP Margin-Apt/comm/rental income
500
10%
0%

0
Q1-06
Gross
Profit
(AED MM)

799

Q2-06

686

Q3-06

Q4-06

963

1,446

Q1-07

1,097

Q2-07

1,310

Q3-07

1,497

GP Margin - Villas

Outlook
Outlook for Q4-2007
9 Net profit from normal operations expected to be maintained at Q32007 levels
9 Gross margin in Dubai expected to remain robust

Long term targets

9 60-70% of revenues expected from International operations in 2010E
9 The Debt/Equity ratio until 2010 is not expected to exceed 50%
9 Listing of business segment subsidiaries

Global Presence
Canada

UK

Syria

Kuwait

Russia

Malaysia

USA

France

Lebanon

Bahrain

Pakistan

Brunei

The Caribbean

Italy

Jordan

Qatar

India

Oman

Thailand

Philippines
New Zealand

China
Hong Kong
Japan

Morocco

Turkey

Tunisia

Libya

UAE

Indonesia

Algeria

Egypt

KSA

Vietnam

Singapore

Australia

Appendix

Group Structure
EMAAR
GROUP PJSC

EMAAR
INTERNATIONAL

EMAAR DUBAI

Property
Development
Projects - 100%

JV with Bawadi
50%

India

EMAAR
INVESTMENT

KSA - EEC
31%

Jordan-Dead Sea
37%

KSA - EME
61%

Turkey
60%

Emaar MGF
42%

Karachi
67%

Emaar-APIC
74%

Islamabad*
67%

Emaar Syria
100%

Egypt
100%

Emaar IGO
60%

Canada
95%

Emaar Morocco
100%

Lebanon
65%

Emaar-ONA 50%

WL Homes
100%

Turner Intl ME
50%
Hamptons
100%

Pakistan

Syria

Morocco

Libya**
50%

*Economic ownership of 47%, ** Currently in the process of incorporation

MALLS
100%

EDUCATION
100%

HOSPITALITY
100%

HEALTHCARE
100%

HOTELS &
RESORTS
100%

DUBAI BANK
30%
AMLAK
48%
EMAAR
FINANCIAL
SERVICES
38%
EMAAR
INDUSTRIES &
INVESTMENTS
40%

Balance Sheet & Credit Metrics

AED million

2004

2005

2006

Sept
2007

Current Assets

7,641

18,841

18,016

27,812

Fixed Assets

2,769

8,800

11,155

12,028

Other Assets

2,805

4,563

12,519

13,176

Total Assets

13,215

32,204

41,690

53,016

639

239

3,992

8,396

4,225

5,998

6,721

9,245

296

271

432

524

Low current debt levels

Total Liabilities

5,160

6,508

11,145

18,165

Shareholders' Equity

8,055

25,696

30,545

34,851

allow significant financial

flexibility

13,215

32,204

41,690

53,016

2004

2005

2006

Interest Bearing Liabilities

Current Liabilities
Long-Term Liabilities

Total Liabilities & Equity

Credit Ratios

Sept
2007

Debt / Capitalization

7.3%

0.9%

11.6%

19.4%

*EBITDA / Interest

66.7x

173.2x

67.2x

41.1x

Debt / EBITDA

0.18x

0.10x

0.34x

0.97x

* Annualized EBITDA and average debt

Key Accounting Policies

Consolidated financial statements have been prepared in accordance with
IFRS and applicable requirements of the UAE law.

In relation to sold units, the revenue is recognized progressively over the

construction period of the project (subject to a minimum of 20% of the
construction cost being incurred).

Income from non-property development activities does not contribute to

Emaars Revenues and is recorded as Other Operating Income.

The value of land is reported in the financial statements at cost. Therefore,

granted land cost is nil.