Results Presentation

Nine months ended 30 September 2019

0
Nov 2019
 Disclaimer

This presentation is being made only to, and is only directed at, persons to whom this presentation may lawfully be communicated (relevant
persons). Any person who is not a relevant person should not act or rely on this presentation or any of its contents.

This presentation does not constitute or form part of, and should not be construed as, an offering of securities or otherwise constitute an
invitation, inducement or recommendation to any person to underwrite, subscribe for or otherwise acquire securities in any company within
the DAMAC group (the Group).

Certain statements made in this presentation are forward looking statements. Such statements are based on current expectations and are
subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or
results expressed or implied in these forward-looking statements. Forward-looking statements speak only as of the date of this presentation.

1
 DAMAC Overview

Portfolio Overview
Headquarters in Dubai
Completed (1) In-progress (2) and In-planning (3)
50+ 6 10,000+
mn sq ft projects in countries with presence Hospitality units projects projects
progress and in planning (incl. completed units and
project pipeline) Total: 27,444 units Over 35,000 units

c.1,600+ c.450 c.350 In Dubai: 90% c.97%

employees sales staff Project execution and
execution support team Note: Exchange rate US$/AED= 0.2721 used in the whole presentation
(1) Completed projects: projects with Building Completion (BCC) received
AED2.4bn AED2.8bn AED133mn (2) In-progress projects: projects with enabling works started / consultant appointed
(3) In-planning projects: projects with no consultant appointed
Booked Sales in 9M19 Revenue in 9M19 Net Profit in 9M19

2018 - AED4.25bn 2018 - AED6.13bn 2018 - AED1.15bn

Strong delivery track record across economic cycle Performance highlights

Units Completed 22,119 27,444

Booked Sales (AED mn) Revenue (AED mn)
7,506 7,454
Dubai - 6,133
24,594 units

3,251 4,253
Outside Dubai -
2,074 2,850 units
2,382
2,763

During Post-crisis Cumulative

Pre-crisis
Crisis 2012 up to 30
upto 2008
2009-11 onwards Sep 2019 2017 2018 9M19 2017 2018 9M19

2
Performance Review

• Booked sales of AED2.4bn in 9M 2019 vs AED3.2bn in 9M 2018

Sales &
• Delivered 3,072 units in Dubai during the period in including first deliveries in
Deliveries masterdevelopment Akoya, Ghalia, Tower 108 and Prive by DAMAC.

Profit • Reported gross profit of AED838mn and net profit of AED133mn in 9M 2019.

• Gross debt (including Sukuk Certificates) at AED4.0bn. Cash and Bank balance
stood at AED5.0bn.
• Net cash position stood at AED1.0bn as at 30 Sep 2019.
Leverage • During 9M 2019, DAMAC repaid the balance outstanding Sukuk Certificates worth
AED 995 million (US$ 271 million) on its scheduled maturity. These certificates were
part of US$ 650 million (AED 2,389 million) five year Sukuk Trust Certificates issued
on 9 April 2014.

3
Financial Highlights

Revenue Gross profit Operating profit

AED 2,763m AED 838m AED 157m

(9M 2018: AED 5,222m) (9M 2018: AED 1,851m) (9M 2018: AED 1,171m)

Net profit Operating Cashflow Total assets

(before wotking capital changes)

AED 133m AED 292m AED 24,462m

(9M 2018: AED 1,093m) (9M 2018: AED 1,174m) (Dec'18: AED 25,176m)

Equity Cash and Bank Gross Debt

AED 14,242m AED 4,991m AED 3,967m

(Dec'18: AED 14,110m) (Dec'18: AED 6,174m) (Dec'18: AED 4,948m)

Cash & Dvplmt Prop as

Debt to Total Assets Gross Margins
% of Total Assets

16.2% 30.3% 61.1%

(Dec'18: 19.7%) (9M 2018: 35.4%) (Dec'18: 61.1%)
4
Performance Trends

Revenue Trends (AED mn) Net Profit Trends (AED mn)

REVENUE NET PROFIT

231
1,543

910 896 971 895

59 51 51
31

3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19

Gross Profit Margin Trends % Booked Sales (AED mn)

GPM % of Rev BOOKED SALES

37.5% 1,176
30.0% 29.7% 1,023
27.0% 26.8% 917

591 615

3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19

5
Performance Trends (contd.)

Total Assets (AED mn) Total Equity (AED mn)

TOTAL ASSETS
TOTAL EQUITY
25,452 14,051 14,110 14,141 14,191 14,242
25,037 25,176 24,676 24,462

3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19

Total Debt (AED mn) Cash & Bank Balance (AED mn)

TOTAL DEBT Non-Escrow Cash Cash held in Escrow

6,231 6,617
4,912 4,948 4,975 6,174
5,585
4,070 3,967 666 1,046 1,824 4,991
1,067
1,278
5,565 5,127 4,794 4,518
3,713

3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19

6
Summary Income Statement

In AED mn 3Q 2019 3Q 2018 YoY % 9M 2019 9M 2018 YoY %

Revenue 895 1,543 -42% 2,763 5,222 -47%
Cost of sales (560) (1,080) -48% (1,925) (3,371) -43%
Gross profit 336 463 -28% 838 1,851 -55%
Gross profit margin 37.5% 30.0% 30.3% 35.4%
Other operating income 12 0 NM 106 5 NM
General, administrative and selling
(269) (199) 35% (739) (664) 11%
expenses
Amortisation of right-of-use asset (8) 0 (25) 0
Depreciation (9) (7) 32% (23) (22) 8%
Operating profit 62 257 -76% 157 1,171 -87%
Operating profit margin 6.9% 16.7% 5.7% 22.4%
Other Income 19 13 42% 73 40 81%
Finance Income 36 44 -18% 121 126 -4%
Finance Costs (66) (84) -22% (219) (245) -10%
Profit for the period 51 231 -78% 133 1,093 -88%
Net income margin 5.7% 15.0% 4.8% 20.9%

7
Summary of Financial Position

In AED mn Sep'19 Dec'18 Development Properties - Sep’19 (AED mn)

ASSETS
Right-of-use assets 101 0 783 Land held for
2,109 future
Property and equipment 130 141
Investment Properties 183 189 development
Development properties 9,955 9,215 Properties under
Other financial assets 851 1,055 development
Trade and other receivables 7,884 8,120
Financial investments 367 283
Completed
Cash and bank balances 4,991 6,174 7,063 properties
Total Assets 24,462 25,176

EQUITY AND LIABILITIES

Share capital 6,050 6,050 Trade and other payables - Sep’19 (AED mn)
Statutory reserve 903 903 49 75 Accruals
Retained earnings 7,289 7,156
Total Equity 14,242 14,110
Other payables

975 1,097
Liabilities
Bank borrowings 676 667 Retentions payable
Sukuk certificates 3,291 4,280
Advances from customers 2,839 2,618 Employees' end of
Lease liabilities 107 0 service indemnity
Trade and other payables 3,307 3,501 1,111
Deferred consideration
Total Liabilities 10,220 11,067 payable for land

Total Equity & Liabilities 24,462 25,176 8

Summary Cashflows

In AED mn 9M 2019 9M 2018 Change Movement in cash and cash equivalents during 2019
Cash flows from operating activities
Profit for the period 133 1,093 (960)
392 1,179
Adjustments for: 5,543 240
Depreciation on property and equipment 23 22 2
Amortisation of right-of-use assets 25 0 25 4,515
Provision for employees’ end-of-service
9 11 (2)
indemnity
Amortization of issue costs on Sukuk
5 11 (6)
Certificates
(Gain)/Loss on retirement of property and
1 0 1 Opening Cash CF from CF from CF from Closing Cash
equipment
Finance income (121) (126) 5 & Cash Operating Investing Financing & Cash
Finance costs 219 245 (26) Equivalents activities activities activities Equivalents
Reversal of impairment on trade receivables (1) (80) 79
Operating cash flows before changes in
292 1,174 (882)
working capital Sep'19 Sep'18
Decr/(Incr) in trade and other receivables 234 (1,444) 1,678 Cash and bank balances 4,991 6,231
(Incr)/Decr in development properties (740) 714 (1,454)
Fixed deposits with an original
Incr/(Decr) in advances from customers 221 (655) 876
maturity of greater than three (476) (615)
Employee end-of-service benefits paid (9) (9) (0)
Decrease in trade and other payables (238) (74) (163) months
Net cash generated from operating Overdrafts 0 (52)
(240) (295) 55
activities
Cash & Cash Equivalents 4,515 5,563
Net cash (used in) / generated from
392 797 (405)
investing activities

Net cash generated from financing

(1,179) (815) (364)
activities

Net Increase in Cash & Cash Equivalents (1,027) (313) (714)

Opening Cash & Cash Equivalents 5,543 5,877

Closing Cash & Cash Equivalents 4,515 5,563 9
Key In-progress projects contributing to revenue

Status of key in-progress projects contributing to revenue from constructed apartment as at 30 Sep 2019

Schedule Year of Total Area

% Recognised
Completion ('000 sq ft)
IN PROGRESS DEVELOPMENTS
MERANO TOWER 2020 396 60%-80%
PARAMOUNT TOWER HOTEL & RESI 2020 799 20%-40%
VERA TOWER 2021 347 0%-20%
DAMAC Hills Apartments 2019-20 4,058 60%-80%

Note:
1. % Recognized is a factor of % area sold and % completion in any particular project.
2. For DAMAC Hills, above data pertains to all the apartment buildings available for sale in the development which meets threshold
criteria and are eligible for revenue recognition.

10
Portfolio Overview (as at 30 Sep 2019)
Portfolio by location
Portfolio by development status
(in progress and in-planning projects)

Area (mn sq ft) Location

In-
Plannin Internat
Comple ional
g, 3.6,
ted, 2%
4%
31.7,
39%
In-
Progres
s, 46.5,
57%
UAE
98%

UAE International

No of projects 22 No of projects 2

Units ~35K Units c.0.6K

Sellable area (mn sq ft) 49.4 Sellable area (mn sq ft) 0.7

Completion date 2019/22 Completion date 2022

Note: Above table pertains to in progress and in planning projects only.

11
investor.relations@damacgroup.com Thank you
12