Results Presentation

Year ended 31 December 2019

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March 2020
 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.

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 DAMAC Overview

Portfolio Overview
Headquarters in Dubai
Completed (1) In-progress (2) and In-planning (3)
50+ 6
mn sq ft projects in progress and in countries with presence projects projects
planning
Total: 29,051 units Over 35,000 units
c.1,600+ c.450 In Dubai: 90% c.96%
employees sales staff

Note: Exchange rate US$/AED= 0.2721 used in the whole presentation

(1) Completed projects: projects with Building Completion (BCC) received
AED3.1bn AED4.4bn (2) In-progress projects: projects with enabling works started / consultant appointed
Booked Sales in 2019 Revenue in 2019 (3) In-planning projects: projects with no consultant appointed

2018 - AED4.3bn 2018 - AED6.1bn

Strong delivery track record across economic cycle Performance highlights

Units Completed
Booked Sales (AED mn) Revenue (AED mn)
23,726 29,051
7,506 7,454
Dubai - 6,133
26,201 units
4,253 4,399
Outside Dubai -
3,251 2,850 units 3,142
2,074

During Post-crisis Cumulative

Pre-crisis
Crisis 2012 up to 31
upto 2008
2009-11 onwards Dec 2019 2017 2018 2019 2017 2018 2019

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Performance Review

• Booked sales of AED3.1bn in 2019 vs AED4.3bn in FY2018.

Sales &
• Delivered c.4,700 units in Dubai during the year in including first deliveries in
Deliveries masterdevelopment Akoya and other luxury projects in Dubai

• Total revenues of AED4,399mn iin FY2019 vs AED6,133 in FY2018.

• Reported gross profit of AED1,291mn and net loss of AED37mn in FY2019.
Financial
performance • Financial performance for 2019 was adversely impacted by non-cash items such as
provisions for impairment on development properties and provision for impairment
on trade receivables amounting to AED166mn.

• Gross debt (including Sukuk Certificates) at AED3.8bn. Cash and Bank balance
stood at AED4.6bn as at 31 Dec 2019
Leverage • Net cash position stood at AED804mn as at 31 Dec 2019.
• DAMAC has reduced gross debt by AED1.6bn in last 18 months ending on 31 Dec
2019.

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Financial Highlights

Revenue Gross profit Operating profit

AED 4,399m AED 1,291m AED 222m

(2018: AED 6,133m) (2018: AED 2,121m) (2018: AED 1,235m)

Net profit/(loss) Operating Cashflow Total assets

(before working capital changes)

-AED 37m AED 570m AED 23,825m

(2018: AED 1,152m) (2018: AED 1,313m) (Dec'18: AED 25,176m)

Equity Cash and Bank Gross Debt

AED 14,073m AED 4,646m AED 3,842m

(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

16.1% 29.3% 59.5%

(Dec'18: 19.7%) (2018: 34.6%) (Dec'18: 61.1%)
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Performance Trends

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

REVENUE NET PROFIT

1,636

910 896 971 895

59 31 51 51 -169

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

Gross Profit Margin Trends % Booked Sales (AED mn)

GPM % of Rev BOOKED SALES

37.5%
29.7% 27.7%
27.0% 26.8% 1,176
1,023
760
591 614

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

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Performance Trends (contd.)

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

TOTAL ASSETS
TOTAL EQUITY
25,176 25,452 24,676 24,462 23,825

14,110 14,141 14,191 14,242 14,073

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

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

TOTAL DEBT Non-Escrow Cash Cash held in Escrow

6,174 6,617
5,585
4,948 4,975 4,991 4,646
4,070 3,967 3,842 1,046 1,824
1,067
1,278 1,200
5,127 4,794 4,518 3,713 3,446

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

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Summary Income Statement

In AED mn 4Q 2019 4Q 2018 YoY % FY 2019 FY 2018 YoY %

Revenue 1,636 910 80% 4,399 6,133 -28%
Cost of sales (1,183) (640) 85% (3,108) (4,012) -23%
Gross profit 453 270 68% 1,291 2,121 -39%
Gross profit margin 27.7% 29.7% 29.3% 34.6%
Other operating income 31 90 -66% 137 95 44%
General, administrative and selling expenses (236) (262) -10% (976) (1,006) -3%
Amortisation of right-of-use asset (8) 0 NM (33) 0 NM
Depreciation (8) (6) 24% (31) (28) 11%
Provision/(Reversal) for Impairment on Trade
(42) 28 NM (41) 108 NM
Receivables
Provision for Impairment on Development
(124) (54) 130% (124) (54) 130%
Properties
Operating profit 65 64 1% 222 1,235 -82%
Operating profit margin 4.0% 7.1% 5.0% 20.1%
Other Income 25 40 -38% 98 80 22%
Finance Income 29 36 -18% 151 162 -7%
Finance Costs (72) (81) -11% (291) (326) -11%
Provision for value added tax (217) 0 NM (217) 0 NM
Profit for the period (169) 59 NA (37) 1,152 NA
Net income margin -10.4% 6.5% -0.8% 18.8%

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Summary of Financial Position
In AED mn Dec'19 Dec'18 Change Development Properties - Dec’19 (AED mn)
ASSETS
Cash and bank balances 4,646 6,174 (1,528) 751 Land held for
Trade and other receivables 8,010 8,120 (110) 2,189 future
Development properties 9,527 9,215 313 development
Other financial assets 870 1,055 (185)
Financial investments 370 283 87 Properties under
Right-of-use assets 92 0 92 development
Property and equipment 128 141 (13)
Investment Properties 181 189 (8)
Total Assets 23,825 25,176 (1,352) Completed
6,587 properties
EQUITY AND LIABILITIES
Share capital 6,050 6,050 0
Statutory reserve 903 903 0
Retained earnings 7,119 7,156 (37) Trade and other payables - Dec’19 (AED mn)
Total Equity 14,073 14,110 (37) 52 75 Accruals

Liabilities Trade payables

Trade and other payables 3,446 3,501 (55)
Advances from customers 2,371 2,618 (247) 1,171
1,024 Other payables
Lease liabilities 93 0 93
Bank borrowings 550 667 (118)
Retentions payable
Sukuk certificates 3,292 4,280 (989)
Total Liabilities 9,752 11,067 (1,315)
Employees' end of
316 808 service indemnity
Total Equity & Liabilities 23,825 25,176 (1,352)
Deferred consideration
payable for land

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Summary Cashflows
In AED mn FY 2019 FY 2018 Change Movement in cash and cash equivalents during 2019
Cash flows from operating activities
Profit for the period (37) 1,152 (1,189)

Adjustments for:
Depreciation on property and equipment 31 28 3 5,543 327 383 1,468
Amortisation of right-of-use assets 33 0 33
Provision for employees’ end-of-service
13 14 (1)
indemnity 4,131
Amortization of issue costs on Sukuk
6 13 (7)
Certificates
(Gain)/Loss on retirement of property and
1 0 1
equipment
Gain on Disposal 0 (3) 3 Opening Cash CF from CF from CF from Closing Cash
Impairment of Development Properties 124 54 70 & Cash Operating Investing Financing & Cash
Provision for value added tax 217 0 217 Equivalents activities activities activities Equivalents
Finance income (151) (162) 12
Finance costs 291 326 (35)
Reversal of impairment on trade receivables 41 (108) 149 Dec'19 Dec'18
Operating cash flows before changes in
working capital
570 1,313 (960) Cash and bank balances 4,646 6,174
Decr/(Incr) in trade and other receivables 66 (1,413) 1,479 Fixed deposits with an original
(Incr)/Decr in development properties (437) 360 (797) maturity of greater than three (487) (631)
Incr/(Decr) in advances from customers (247) (657) 410 months
Employee end-of-service benefits paid (11) (12) 1
Decrease in trade and other payables (269) 35 (304) Overdrafts (27)
Net cash generated from operating activities (327) (373) (171)
Cash & Cash Equivalents 4,131 5,543
Net cash (used in) / generated from investing
383 913 (530)
activities

Net cash generated from financing activities (1,468) (875) (593)

Net Increase in Cash & Cash Equivalents (1,412) (334) (1,078)

Opening Cash & Cash Equivalents 5,543 5,877

Closing Cash & Cash Equivalents 4,131 5,543
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Key In-progress projects contributing to revenue

Status of key in-progress projects contributing to revenue from constructed apartment as at 31 Dec 2019

Schedule Year of Total Area

% Recognised
Completion ('000 sq ft)
IN PROGRESS DEVELOPMENTS
MERANO TOWER 2020 396 80%-100%
PARAMOUNT TOWER HOTEL & RESI 2020 802 20%-40%
VERA TOWER 2021 347 40%-60%
DAMAC Hills Apartments 2020-21 4,040 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.

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Portfolio Overview (as at 31 Dec 2019)
Portfolio by location
Portfolio by development status
(in progress and in-planning projects)

Area (mn sq ft) Location

In-
Plannin Internat
g, 3.6, Comple ional
4% ted, 2%
33.5,
In- 41%
Progres
s, 44.8,
55%
UAE
98%

UAE International

No of projects 22 No of projects 2

Units ~35K Units c.0.6K

Sellable area (mn sq ft) 47.6 Sellable area (mn sq ft) 0.7

Completion date 2020/22 Completion date 2022

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

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investor.relations@damacgroup.com Thank you
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