INVESTOR PRESENTATION
February 2019 CONTENTS
TABLE OF CONTENTS
Majid Al Futtaim FY 2018 Performance Update
Appendix ▪ Majid Al Futtaim Group Overview
USD / AED EXCHANGE RATE OF 3.6725 IS USED THROUGHOUT THE PRESENTATION 2 2 WE ARE NAVIGATING A CHALLENGING MARKET ENVIRONMENT RetailSector Landscape Trends
Evolving Consumer Behavior Intensifying Competition Substitution Effect ➢ Greater emphasis on personalized ➢ Value migrating from brick-and- ➢ Stores will transition to places that services and experiences mortar to e-commerce tell stories through experiences ➢ Hyper-connected consumer ➢ Increased Automation in Last Mile ➢ Disruptive technology such as redefining value Delivery IOT, AI, Augmented Reality.
Macro Trends
Global Trade Wars Oil Price Volatility
Geopolitical shifts across the ME Egyptian economy improving
Stronger USD Fiscal Reforms across GCC
3 WHILE REMAINING COMMITTED TO OUR STRATEGIC PRIORITIES
Expand to be leaders Maintain leadership in adjacent/core in our core countries geographies Long Term Strategy
Our aspiration is to become a regionally focusedlifestyleconglomerate …with a stellar international reputation Expand our presence in Protect our leadership Egypt and Saudi Arabia, position in the UAE driven by our shopping 1 2 malls business signature Top notch customer talent and Grow at scale at least Build a foundation experience capabilities position in Africa one adjacent Brand & business Human Customer Creating great moments Capital Experience for everyone, everyday
Seamless andIntegratedOmnichannel Offering
Expand in additional Evaluate business African countries, opportunities in adjacent businesses primarily with Carrefour Digital Customer Intelligence
4 WITH THE RIGHT ENABLERS AND MINDSET
THE ‘MAF WAY’ OF OPERATIONAL EXCELLENCE
Create an Adopt a Execute Be a exceptional Signature founder’s great flawlessly pioneer people Customer “ mentality moments environment Experience for everyone, everyday 1 2 3 4 Top Notch ” Talent and Capabilities Enablers
A LEAN AND AGILE APPROACH
Procurement and Capability Building Financial Discipline Cost & Balance Supply Chain in Investments Sheet Optimization
5 SUMMARY OF MAJID AL FUTTAIM’S FY 2018 PERFORMANCE
RESILIENT FINANCIAL PERFORMANCE DELIVERED IN FY 2018
Revenue EBITDA Assets +7% Vs PY to: +9% Vs PY to: +2% Vs PY to: USD 9.4bn USD 1.3bn USD 16.4bn
STABILITY AND STRENGTH THROUGH DIVERSIFICATION
Geographical Split – 31 December 2018 Segmental Split – 31 December 2018
By Revenue By EBITDA By Revenue By EBITDA
Oman Others¹ Ventures Saudi 5% Others¹ Ventures Properties 17% 7% 2% 7% 7% 13% Oman Qatar 5% UAE 5% 50% Retail Saudi 31% 9% Bahrain UAE Properties Qatar 8% 66% 65% 7% Egypt Bahrain Egypt 6% Retail 5% 7% 81%
¹ OTHERS INCLUDES KUWAIT, JORDAN, PAKISTAN, LEBANON, IRAQ, GEORGIA, ARMENIA, KENYA 6 FY 2018 PERFORMANCE: MAJID AL FUTTAIM PROPERTIES
Operational Highlights Revenue EBITDA (USDmn) (USDmn) Extended our network of community malls with the opening of My City Centre Al Dhait 1,254 1,264 in UAE and My City Centre Sur and 800 814 City Centre Suhar in Oman Recognized by the GRESB with a ‘Green Star’ Rating for the 5th year FY 2017 FY 2018 FY 2017 FY 2018 in a row Grew our hotel portfolio with the Malls avgoccupancy1 95% opening of Aloft City Centre Deira Footfall y-o-y 4% Work is continuing on City Centre Almaza in Cairo Egypt and My City Rent to sales 13% Centre Masdar, in Abu Dhabi due to Hotels avgoccupancy 75% open in 2019. REVPAR change y-o-y -13%
1 EXCLUDING MALL OF EGYPT OCCUPANCY STANDS AT 96% GRESB: GLOBAL REAL ESTATE SUSTAINABILITY BENCHMARKS 7 FY 2018 PERFORMANCE: MAJID AL FUTTAIM RETAIL
Operational Highlights Revenue EBITDA (USDmn) (USDmn)
Announced a strategic partnership with the Ministry of Investment 7,049 7,622 and International Cooperation in 383 Egypt 330
Inaugurated Carrefour regional FY 2017 FY 2018 FY 2017 FY 2018 distribution center
launched Carrefournow.com Sales (LFL) -4% express delivery service Hypermarket openings 10
Expanded our footprint in Kenya Supermarket openings 23
Entered into further strategic Total stores 264 partnerships in last-mile delivery
8 FY 2018 PERFORMANCE: MAJID AL FUTTAIM VENTURES
Revenue Operational Highlights EBITDA (USDmn) (USDmn)
Inaugurated the first cinema multiplex in Saudi Arabia, following the lifting of a 651 577 40 year ban 70 87 Further expanded our cinema network across the region with additional FY 2017 FY 2018 FY 2017 FY 2018 openings in Egypt, Bahrain and Kuwait Expanded the portfolio of L&E with additional openings Cinema screens added 52
Total cinema screens 353
New L&E venues 5
9 GROUP DEBT PROFILE (1/2)
Debt Maturity Profile (USD mn) All Senior Unsecured financing obligations rank pari passu among themselves Capital Markets Bank Debt 2000 Majid Al Futtaim Group’s Balanced Funding Profile 31 Dec 1600 (USD bn) 2018 Notes Primarily Senior Unsecured Majid Al Futtaim Holding 3.0 1200 obligations at Holding level Primarily Senior Unsecured 1,033 Majid Al Futtaim Properties 0.5 800 obligations at Properties level 280 Primarily project finance with 97 Others 0.3 400 800 limited recourse to borrower 500 500 Total 3.8 36 55 64 437 0 2019 2020 2021 2022 2023 2024 2025+ Majid Al Futtaim Holding Cross guarantees Majid Al Futtaim Properties $400mn $2.5bn Issued new perp to Refinanced $1.6bn existing bank loan replace 2013 NC5 4.6 yrs $2.4bn facilities + added $0.9bn of new inaugural hybrid Undrawn Available commitments Weighted Average Committed Lines Debt Life
1USD 0.9BN EQUITY HYBRIDS NOT TAKEN INTO ACCOUNT IN DEBT AND AVERAGE DEBT LIFE CALCULATIONS 10 GROUP DEBT PROFILE (2/2)
Strong Leverage Metrics Facilities & liquidity 4,000 5 3,418 3,500 Debt Capital Markets Issuances % $bn 2,817 4 Bonds 21% 1.3 3,000 2,612 2,517 Sukuk 8% 0.5 2,500 2,179 3 2.7x Total Debt Capital Markets Issuances 29% 1.8 2,000 2.4x 2.2x 2.4x 2.3x Bank Facilities % $bn 2 1,500 1,145 1,152 1,253 Drawn 32% 2.0 977 1,044 1,000 Undrawn 39% 2.4 1 500 Total 71% 4.4 Total Bank Commitments & Debt Capital Markets 100% 6.2 0 0 2014 2015 2016 2017 2018 Less Drawn (3.8) EBITDA Net Debt (USD mn) Net Debt / EBITDA (times) Plus Cash 0.4 31 Dec 31 Dec Total Liquidity 2.8 Funding Risk Management Framework Policy/Covenant 2017 2018 Liquidity Coverage - Months 18 27 49 31 Dec 31 Dec Interest Rate Risk - Duration in Years 0.5-3.5 2.3 2.3 Investment grade credit ratings 2017 2018 EBITDA Interest Cover (x) 1 >2.0 >10 8x Fitch BBB BBB EBITDA from encumbered assets as % of total Standard & Poor’s BBB BBB EBITDA 4% 4% Secured debt as a percentage of Gross Debt 6% 8%
1EBITDA INTEREST COVER MEANS EBITDA OVER NET FINANCE CHARGES NET/DEBT EBITDA ADJUSTED AS PER S&P METHODOLOGY AT ~4.0X 11 MEASURED GROWTH & STEADY DEVELOPMENT PIPELINE
TRUE TO OUR COMMITMENT TO OUR CREDIT RATING, OUR TOP-DOWN CAPITAL ALLOCATION APPROACH IS MANAGED WITHIN THE DEBT CAPACITY OF THE “BBB” METRICS AND WITH AN EYE ON PRUDENT FINANCIAL MANAGEMENT. Mall Development Pipeline 2018 2019 2020 2021 2022 2023 onwards City Centre Suhar Oman Community Mall (Suhar) GLA: 40,000 M2
My City Centre Masdar UAE Community Mall (Abu Dhabi) GLA: 18,725 M2
City Centre Almaza EGYPT Regional Mall (Cairo) GLA: 103,000 M2
City Centre Al Zahia UAE Super Regional Mall (Sharjah) GLA: 136,000 M2
Mall of Oman Oman Super Regional Mall (Muscat, Oman) GLA: 145,000 M2
City Centre Ishbiliyah KSA Super Regional Mall (East Riyadh) GLA: 114,000 M2
Mall of Saudi KSA Super Regional Mall (North Riyadh) GLA: 321,000 M2
City Centre Al Jazira UAE Regional Mall (Abu Dhabi) GLA: 80,500 M2
PLANNED CONSTRUCTION START PLANNED OPENING 12 In Summary
➢ Strong balance sheet ➢ Stable cash flow generation A strong foundation ➢ Best in class corporate governance ➢ Established track record, reputation & brand ➢ Diversified sources of funding ------
➢ Maintaining strong UAE position Positioned to seize opportunities ➢ Expanding in growth markets amidst a volatile environment ➢ Business performance management
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➢ Top down capital allocation Appropriately managing ➢ Stress testing the risks ➢ Country risk management ➢ Defined polices & procedures
13 13 CONTENTS
TABLE OF CONTENTS
Majid Al Futtaim FY 2018 Performance Update
Appendix ▪ Majid Al Futtaim Group Overview
14 14 MAJID AL FUTTAIM GROUP OVERVIEW (1/2)
Group Corporate Structure Solid Track Record
Mr. Majid Al Futtaim Mr. Tariq Al Futtaim (Founder) Majid Al Futtaim Holding LLC Consolidated Financials (USDmn) 99.6% MAJID AL FUTTAIM 0.4% CAPITAL LLC Revenue EBITDA 99.9% 9,436 8,788 MAJID AL FUTTAIM HOLDING 8,128 (Rated BBB/BBB) 6,868 7,445 MAJID AL FUTTAIM MAJID AL FUTTAIM MAJID AL FUTTAIM 1,253 PROPERTIES RETAIL VENTURES 1,145 1,152 1044 977 Shopping Malls Carrefour Cinemas Gourmet Gulf (JV) Hotels L&E Enova (JV) Communities Fashion 2014 2015 2016 2017 2018 Project Finance Management Best in Class Governance Principles
Regional Footprint – 15¹ countries since 1992 ✓ Voluntarily adopted the principles of the Combined Code on Corporate Governance for listed companies in the UK ✓ Strong operating company board structures reporting to a group board Kazakhstan
Georgia Armenia Highest Rated Privately Owned Corporate in the GCC Lebanon Iraq Kuwait Pakistan Egypt Qatar Bahrain Rating Agency Rating Outlook Latest Affirmation UAE Saudi Arabia Date Standard & Poor’s BBB Stable July 2018
Kenya Fitch Ratings BBB Stable July 2018
* *¹ MAJID AL FUTTAIM RETAIL CLOSED THEIR HYPERMARKET IN KAZAKHSTAN ON 30 JUNE 2017 BUT CONTINUE TO RETAIN THE COUNTRY HEAD OFFICE 15 15 MAJID AL FUTTAIM GROUP OVERVIEW (2/2)
SOLID FINANCIAL PERFORMANCE ON THE BACK OF A MANAGED GROWTH STRATEGY
Financial Highlights Majid Al Futtaim Properties (USDmn) Majid Al Futtaim has a proven track record of delivering strong financial Revenue EBITDA results on the back of an effective growth strategy 1,040 1,114 1,223 1,254 1,264 Majid Al Futtaim Holding LLC Consolidated Financials (USDmn) 814 710 766 800 Item 2014 2015 2016 2017 2018 645 Assets 12,151 13,853 14,375 16,081 16,436 Revenue 6,868 7,445 8,128 8,788 9,436 EBITDA 977 1,044 1,145 1,152 1,253 ▪ The Group’s ability to combine capital intensive high margin 2014 2015 2016 2017 2018 business (shopping malls) with capital light, high volume Majid Al Futtaim Retail (USDmn) business (hypermarkets) allows it to effectively manage its Revenue EBITDA growth. 5,603 6,011 6,503 7,049 7,622 EBITDA Margin by Entity (%)
63% 63% 64% 64% 70% 62% 312 319 335 330 383 60% 50% 2014 2015 2016 2017 2018 40% Majid Al Futtaim Ventures (USDmn) 30% Revenue EBITDA 492 577 651 20% 14% 13% 12% 12% 13% 393 10% 6% 5% 5% 5% 5% 293 0% 72 87 2014 2015 2016 2017 2018 41 51 70 MAF Properties MAF Retail MAF Ventures 2014 2015 2016 2017 2018
16 BUSINESS OVERVIEW: MAJID AL FUTTAIM PROPERTIES
GROUP’S CORE BUSINESS Overview of Majid Al Futtaim Properties Majid Al Futtaim Properties’ Key Strengths
Alliances and Partnerships with Key Retailers
Established Track Record, Unique Leisure Offers Reputation & Brand (Through Majid Al Futtaim Ventures)
MAJID AL FUTTAIM 24 PROPERTIES
OVER 7 In-House Expertise (Fully Prime Locations Secured for NEW PROJECTS IN DEVELOPMENT ACROSS Integrated Operations) Business 4 COUNTRIES AND MORE I N THE PIPELINE 150% ACROSS THE REGION 180 98% 94% 95% 150 97% 97% 100% 120 90 69% 72% 75% 76% 75% 13 Hotels 192 MILLION 60 50% 11 in UAE 30 167 171 175 186 192 0 0% 2 in Bahrain 2014 2015 2016 2017 2018 Total Shopping Mall Footfall - Million Shopping Mall Occupancy Hotels Occupancy
¹ EXCLUDING MALL OF EGYPT OCCUPANCY STANDS AT 96% 17 MAJID AL FUTTAIM SHOPPING MALLS PORTFOLIO
Existing Projects Projects in Development 18 18 MAJID AL FUTTAIM PROPERTIES (1/2) UAE
Mall of the Emirates City Centre Mirdiff City Centre Deira City Centre Me’aism Opened: 2005 , 248k m2 GLA Opened: 2010 , 198k m2 GLA Opened: 1995 , 118k m2 GLA Opened: 2015 , 24k m2 GLA Occupancy Rate : 96% Occupancy Rate : 95% Occupancy Rate : 99% Occupancy Rate : 96%
City Centre Al Shindagha City Centre Sharjah City Centre Ajman City Centre Fujairah Opened: 2016 , 25k m2 GLA Opened: 2001 , 38k m2 GLA Opened: 1998 , 30k m2 GLA Opened: 2012 , 34k m2 GLA Occupancy Rate : 89% Occupancy Rate : 99% Occupancy Rate : 97% Occupancy Rate : 100%
My City Centre Nasseriya My City Centre Al Barsha My City Centre Al Dhait Opened: 2014 , 5.5k m2 GLA Opened: 2016 , 3.7k m2 GLA Opened: 2018 , 5k m2 GLA Occupancy Rate : 86% Occupancy Rate : 92% Occupancy Rate : 71%
19
MAJID AL FUTTAIM PROPERTIES (2/2) EGYPT
Mall of Egypt City Centre Alexandria City Centre Maadi Opened: 2017 , 164k m2GLA Opened: 2003 , 48k m2GLA Opened: 2002 , 29k m2GLA
Occupancy Rate : 86% Occupancy Rate : 99% Occupancy Rate : 100% OMAN City Centre Muscat City Centre Qurum My City Centre Sur Opened: 2001 , 69k m2GLA Opened: 2005 , 27k m2GLA Opened: 2018 , 16k m2GLA
Occupancy Rate : 99% Occupancy Rate : 97% Occupancy Rate : 90% BAHRAIN BAHRAIN
City Centre Bahrain LEBANON City Centre Beirut Opened: 2008 , 157k m2GLA Opened: 2013 , 62k m2GLA Occupancy Rate : 94% Occupancy Rate : 94%
20 BUSINESS OVERVIEW: MAJID AL FUTTAIM RETAIL
GENERATING STEADY CASHFLOWS
Overview of Majid Al Futtaim Retail Operating Framework ▪ Majid Al Futtaim Retail aims to capitalize on its strong supply chain and procurement procedures to deliver value to its customers. Over 20
New stores Outlets 264 Carrefour Sales Volume In 14 countries Across the Middle East, planned North Africa and CIS Regions
Exclusive Reinvest Purchasing Countries Rebates Power Franchise Across the Middle East, Rights for38 North Africa and CIS Regions Supplier Rebates ▪ Majid Al Futtaim Hypermarkets is a wholly owned subsidiary since 25 June 2013 when Majid Al Futtaim acquired the remaining 25% from Carrefour SA. As part of the transaction, Majid Al Futtaim also renewed its exclusive franchise partnership with the Carrefour group until 2025 and extended it to an additional 19 new countries.
▪ Carrefour charges a sale-based franchise fee and provides Low Prices Good Quality Wide Choices approval on new store openings.
21 MAJID AL FUTTAIM RETAIL CARREFOUR STORES Country Hyper Super Kazakhstan UAE 28 69 Oman 9 2 Georgia Pakistan 6 0 Armenia Bahrain 8 4
Armenia 0 2 Lebanon Iraq Egypt 13 27 Jordan Jordan 5 27 Kuwait Egypt Bahrain Kuwait 3 5 Qatar Pakistan UAE Lebanon 3 0 Saudi Arabia Oman Kenya 3 4 KSA 17 1 Qatar 5 5 Iraq 4 1 Georgia 2 11
Kenya * *MAJID AL FUTTAIM RETAIL CLOSED THEIR HYPERMARKET IN KAZAKHSTAN ON 30 JUNE 2017 BUT CONTINUE TO RETAIN THE COUNTRY HEAD OFFICE 22 BUSINESS OVERVIEW: MAJID AL FUTTAIM VENTURES
SEEKING COMPLEMENTARY BUSINESSES • Majid Al Futtaim Ventures builds and manages value enhancing businesses for the Majid Al Futtaim Group, focusing on selected sectors that are relevant for the wider business in the region. Wholly-Owned Companies Majid Al Futtaim Leisure & Entertainment LLC Majid Al Futtaim Cinemas LLC
➢ Provides unique leisure offerings to Majid Al Futtaim malls Screens 353 Cinema Across the MENA Region
Majid Al Futtaim Finance LLC Majid Al Futtaim Fashion LLC ➢ Credit Card Issuer Business 96 Introduced Visa Over 140k Stores in Cards in 2010 Cards in Force 7Countries Joint Venture Companies ENOVA by VEOLIA Majid Al Futtaim Food & Beverages LLC
JV providing Energy Services and Facilities Acquired in 2013, JV operates portfolio of Management international brands like California Pizza Formed in 2002 ( as Dalkia) Kitchen, Yo Sushi, etc.
23 ROBUST GOVERNANCE STRUCTURE
EFFECTIVE OVERSIGHT OF SYNERGISTIC BUSINESSES Governance Principles ▪ Majid Al Futtaim places considerable emphasis on governance and transparency within its operational framework. ✓ The company has voluntarily adopted the principles of the Combined Code on Corporate Governance for listed companies in the UK across all areas of its business ✓ Strong operating company Board structures reporting to a group Board ✓ Set out the principles of Corporate Governance across each of the group’s operating entities and geographies ▪ Majid Al Futtaim has obtained a Strong management & governance (M&G) score by S&P across its universe of rated entities in the Gulf region – one of the two only entities that such score has been awarded Board Responsibilities
Majid Al Futtaim Holding Board The Board of Majid Al Futtaim Holding provides independent oversight to protect shareholders’ interests: 1) Acting as shareholder of operating companies; 2) Controlling decisions related to strategic new businesses / markets or divestments; and 3) Via managing Funding and Capital allocation Operating Companies Boards Each operating company maintains its own Board of Directors responsible for setting strategic goals, measurement of the success of the businesses in achieving objectives and maintaining corporate accountability. Chairmen of the Operating Company boards are members of the Holding Board of Directors
24 MAJID AL FUTTAIM HOLDING BOARD OF DIRECTORS
Sir Michael Rake Ian Davis Tariq Al Futtaim Alan Keir Chairman Non-Executive Director Non-Executive Director Non-Executive Director Chairman of Worldpay Group LLC Chairman of Rolls Royce Former chairman of the Non Executive Director at HSBC and Director of McGraw Hill and former Worldwide Majid Al Futtaim Charity Non Executive Director at Former Chairman of BT Group Managing Director at Foundation Sumitomo Mitsui Banking and KPMG International McKinsey & Company Corporation
Victor Chu Lord Rose Luc Vandevelde Philip Bowman Alain Bejjani
Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Chief Executive Officer of Majid Al Futtaim Holding Chairman of First Eastern Former CEO of Marks and Founder and Chairman of Independent Director of Investment Group Spencer plc Change Capital Partners LLP Ferrovial S.A Former Executive Vice- Co-founder and director of Chairman of Ocado and Former Chairman of the Former Chief Executive of Chairman of the Investment Peach Aviation Non Executive Director of Carrefour Group and Mark Smiths Group plc and Development Authority of Woolworths Holding Limited and Spencer Director of Burberry Group Lebanon
25