INVESTOR PRESENTATION
February 2020
TABLE OF CONTENTS
CONTENTS
Majid Al Futtaim 2019 Performance Update
Appendix
• Majid Al Futtaim Group Overview
2
2019 Overview
IN 2019 WE HAVE SUSTAINED OUR FINANCIAL POSITION, WHILST CELEBRATING SOME MILESTONE ACHIEVEMENTS
Revenue increased 1%
to USD 9.6BEBITDA increased 1%
to USD 1.3BCashflow from Operations
to EBITDA at 122%2 green sukuks issued
totalling USD 1.2B
Portfolio of 26 shopping malls welcomed
over 200 million visitors
Opened 42 new Carrefour stores
Total store count 306Added 146 cinema screens
Total screens 5111
Environmental Social Governance
Obtained “low risk” ESG
rating from Sustainalytics,
and “A” rating from MSCI
4
1 AS AT FEBRUARY 2020
THERE ARE LONG TERM OPPORTUNITIES IN THE REGION DESPITE CURRENT HEADWINDS
CurrentHeadwinds 2040Outlook
SOURCE: McKinsey Consumer Trends Database, Oxford Economics, United Nations, Global insight, Team analysis, Expert interviews,HSBC, IMF, PWC report, UNCTAD, Focus Economics, WEF MENA Risks Landscape
• MENA economies adapting to slower growth in the short term until reform programs shape the longer term
• MENA region continues to exhibit youth unemployment rates higher than global average
• UAE’s private sector remains in a competitive environment
• Dubai tourism mix changing due to USD strength
• Lebanon experiencing political and economic instability
• Geopolitical tensions have escalated around US-Iran relations
• MENAP region’s contribution to world GDP will increase by 1-2%, driven by population growth
• Oil prices adjusted to a “new normal” range as a result of structural changes in the global economy
• Trade flows expected to be growing at above global averages
• Diversification of GCCeconomies away fromhydrocarbons
• High population growthfor MENAP
• Saudi Arabia and Egyptwill constitute a sixth ofregional real GDP
• Pakistan will become anew growth pocket
• Mid single digit growth expected for the rest of Africa, with an emerging middle class
5
FROM A CUSTOMER BEHAVIOR PERSPECTIVE, THERE HAS BEEN A STRONG SHIFT TOWARDS LIFESTYLE, CONVENIENCE AND DIGITAL
Social connection Sustainability
use Facebook or Twitterwhen finding
inspiration for purchasesAre willing to pay morefor sustainable brands
Trends over brands
Retail CEO’s continue to see
loyalty towards “trends”rather than “brands”
Experiences
Consumers and especiallymillennials
Look for distinctive andrenewed experiences
Convenience
36% Of global respondents
emphasized price and convenienceas a driver for online
Omni-channel
73% Of consumers
use a combination of online andoffline while shopping
Personalization
77% Of global consumers
expect to see more personalizedcontent in the future
Of global consumers66%Of MENA respondents64%
Connectivity
in the Middle-East in 2019
Internet Penetration Rate is at
71%
6
SOURCE: PWC survey 2017, Total Retail 2017, World Bank, ADEC, Saudi National Statistics, UN, Hootsuite, Nielsen, Reuters, Mckinsey study
Cost & Balance Sheet Optimization
Procurement and Supply Chain
Financial Discipline in Investments
Capability Building Sustainability
WHILE ADOPTING A LEAN AND AGILE APPROACH
Maintain leadership in our core countries
Protect our leadership position in the UAE
Expand to be leaders in adjacent/core geographies
Expand our presence in Egypt and Saudi Arabia, driven by our shopping malls business
Build a foundation position in Africa
Expand in additional African countries,
primarily with Carrefour
Grow at scale at least one adjacent business
Evaluate business opportunities in adjacent businesses
WE REMAIN COMMITTED TO OUR STRATEGIC PRIORITIES
7
Sustainability
OUR SUSTAINABILITY STRATEGY IS INTEGRATED IN THE WAY WE DO BUSINESS
Our strategy will manage the socio-economic and environmental issues that matter most to us and
our stakeholders
Majid Al Futtaim has been recognized by external agencies:
Negl Low Med High Severe
0-10 10-20 20-30 30-40 40-100
18.9 /100 LowESG RATING A
TRANSFORMING
LIVE
EMPOWERING
OUR PEOPLE
RETHINKNG
RESOURCES
• Net Positive carbon• Net Positive water• Circular economy• Climate change adaptation• Ecosystem services
• Local economic development• Promoting sustainable lifestyles• Product quality & safety• Crime and security• Community well being & public realm• Responsible procurement
• Healthy workplaces• Human rights & employment conditions• Health & safety• Changing role of women in the workplace
NON-EXHAUSTIVE
9
2019 Performance
SUMMARY OF MAJID AL FUTTAIM’S 2019 PERFORMANCE
GEOGRAPHICAL SPLIT – 31 December 2019
STABILITY AND STRENGTH THROUGH DIVERSIFICATION
By Revenue By EBITDA
SEGMENTAL SPLIT – 31 December 2019
By Revenue By EBITDA
¹ Others includes Kuwait, Jordan, Pakistan, Lebanon, Iraq, Georgia, Armenia, Kenya, Uganda2 Includes impact from IRFS 16
CFO:EBITDAat:122%
Revenue+1% vs PY to:USD 9.6bn
EBITDA+1% vs PY to:USD 1.3bn
Assets+5% vs PY at:USD 17.2bn 2
STABLE FINANCIAL PERFORMANCE DELIVERED IN 2019
UAE48%
Egypt9%
Bahrain4%
Qatar7%
KSA9%
Oman6%
Others¹17%
UAE 59%
Egypt9%
Bahrain8%
Qatar6%
KSA4%
Oman5%
Others¹9%
Properties13%
Retail79%
Ventures8%
Properties64%
Retail31%
Ventures9%
11
Majid Al Futtaim Properties
1,264 1,256
2018 2019
814 813
2018 2019
Revenue(USDmn)
EBITDA(USDmn)
2019 PERFORMANCE: MAJID AL FUTTAIM PROPERTIES
• Increased our shopping mall portfolio to 26 with the opening of
City Centre Al Maza, City Centre Suhar and My City Centre
Masdar
• Completed redevelopment of City Centre Alexandria in
Egypt, and City Centre Ajman in the UAE
• Visitors to our malls crossed the 200M mark for the first time
Operational Highlights
Malls avg occupancy 93%
Footfall y-o-y +4%
Rent to sales 13%
Hotels avg occupancy 80%
REVPAR change y-o-y -8%
13
Majid Al Futtaim Retail
7,622 7,662
2018 2019
383 391
2018 2019
• Celebrated 300th Carrefour store opening, while expanding to
16 countries with entry to Uganda
• Launched new F&B 'live cooking’ concept in select UAE stores
• Introduced robotic automation to increase the capacity of online order fulfilment centres
• Inaugurated our Retail Business School in the UAE, providing functional and commercial training for our employees
Operational Highlights
2019 PERFORMANCE: MAJID AL FUTTAIM RETAIL
Sales (LFL) -5%
Hypermarket openings 12
Supermarket openings 30
Total stores 306
Online orders y-o-y +600%
Revenue(USDmn)
EBITDA(USDmn)
15
Majid Al Futtaim Ventures
651 761
2018 2019
87 113
2018 2019
2019 PERFORMANCE: MAJID AL FUTTAIM VENTURES
• VOX cinemas celebrated 20 years of operations as it approached the 500 screen milestone
• Continued expansion of cinemas in Saudi Arabia with the opening of 78 new screens across 7 sites
• L&E introduced the first Dreamscape experience in the Middle East
Operational Highlights Revenue(USDmn)
EBITDA(USDmn)
Cinema screens added 146
Total cinema screens 5111
Total L&E venues 43
1 AS AT FEBRUARY 2020
17
Financing Overview
GROUP DEBT PROFILE (1/2)
Debt Maturity Profile (USD mn) All Senior Unsecured financing obligations rank pari passu among themselves
Majid Al Futtaim Holding Majid Al Futtaim PropertiesCross guarantees
1USD 0.9BN EQUITY HYBRIDS NOT TAKEN INTO ACCOUNT IN DEBT AND AVERAGE DEBT LIFE CALCULATIONS
$1.2bnIssued two 10 year
Green Sukuks
$2.6bnUndrawn Available Committed Lines
$200mnRefinanced EGP Al Maza project finance
with new senior unsecured term loan
5.9 yrs1
Weighted Average Debt Life
800 500
1,200
16831 47
1088
20
21
108
0
400
800
1200
1600
2000
2020 2021 2022 2023 2024 2025 2026+
Capital Markets Bank Debt Majid Al Futtaim Group’s Balanced Funding Profile (USD bn)
31 December 2019
Notes
Majid Al Futtaim Holding 2.0Primarily Senior Unsecured obligations at Holding level
Majid Al Futtaim Properties 1.7Primarily Senior Unsecured obligations at Properties level
Others 0.2Primarily project finance with limited recourse to parent
Total 3.9
19
GROUP DEBT PROFILE (1/2)
Funding Risk Management Framework Policy/Covenant 2018 2019
Liquidity Coverage - Months 18 49 52
Interest Rate Risk - Duration in Years 0.5-3.5 2.3 2.8
EBITDA Interest Cover (x)1 >2.0 8x 9x
Total Net Debt to Total Equity (x) <0.7 0.4 0.4
EBITDA from encumbered assets as % of total EBITDA 4% 1%
Secured debt as a percentage of Gross Debt 8% 1%
31 Dec 31 Dec
Strong Leverage Metrics
Debt Capital Markets Issuances % $bn
Bonds 12% 0.8
Sukuk 26% 1.7
Total Debt Capital Markets Issuances 38% 2.5
Bank Facilities % $bn
Drawn 22% 1.4
Undrawn 40% 2.6
Total 62% 4.0
Total Bank Commitments & Debt Capital Markets 100% 6.5
Less Drawn (3.9)
Plus Cash 0.4
Total Liquidity 3.0
Investment grade credit ratings
31 Dec
2018
31 Dec
2019
Fitch BBB BBB
Standard & Poor’s BBB BBB
Facilities & liquidity
1,044 1,145 1,152 1,231 1,458
2,517 2,612 2,804
3,418
4,775
2.4x 2.3x2.4x
2.8x
3.3x
0
1
2
3
4
5
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2015 2016 2017 2018 2019
EBITDA Net Debt (USD mn) Net Debt / EBITDA (times)
2019 includes impact of IFRS16
¹ EBITDA INTEREST COVER MEANS EBITDA OVER NET FINANCE CHARGES (EXCL IFRS 16 IMPACT)
20
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
MEASURED GROWTH & STEADY DEVELOPMENT PIPELINE
CITY CENTRE AL ZAHIASUPER REGIONAL MALL (SHARJAH) GLA: 136,000 M2
UAE
KSA
MALL OF OMANSUPER REGIONAL MALL (MUSCAT, OMAN) GLA: 142,000 M2
MALL OF SAUDISUPER REGIONAL MALL (NORTH RIYADH) GLA: 321,000 M2
OMAN
MALL DEVELOPMENT PIPELINE RETAIL AND CINEMA PIPEINE
2020 STORESCINEMA SCREENS
UAE 6 32
KSA 5 87
EGYPT 10 -
OTHERS 1 20+ -
¹ OTHERS INCLUDES OMAN, JORDAN, GEORGIA,PAKISTAN, KENYA, UGANDA, UZBEKISTAN
21
IN SUMMARY
Appropriately managing the risks
Focused on sustainable growth
A strong foundation
• Strong balance sheet
• Stable cash flow generation
• Best in class corporate governance
• Established track record, reputation & brand
• Diversified sources of funding
• Focus on diversification
• Cost optimization and operating efficiencies
• Business performance management
• Top down capital allocation
• Stress testing
• Country risk management
• Defined policies & procedures
22
CONTENTS
TABLE OF CONTENTS
Majid Al Futtaim 2019 Performance Update
Appendix
• Majid Al Futtaim Group Overview
23
MAJID AL FUTTAIM GROUP OVERVIEW (1/2)
BEST IN CLASS GOVERNANCE PRINCIPLES
• Voluntarily adopted the principles of the Combined Code on Corporate Governance for listedcompanies in the UK
• Strong operating company board structures reporting to a group board
SOLID TRACK RECORD
Majid Al Futtaim HoldingLLC Consolidated Financials (USDmn)
REGIONAL FOOTPRINT
1
16countriessince 1992
GROUP CORPORATE STRUCTURE
MR. MAJID AL FUTTAIM
(FOUNDER)MR. TARIQ AL FUTTAIM
MAJID AL FUTTAIM CAPITAL LLC
MAJID AL FUTTAIM HOLDING(RATED BBB/BBB)
MAJID AL FUTTAIM
RETAILMAJID AL FUTTAIM
PROPERTIES
ShoppingMalls
Hotels
Communities
Project Management
Carrefour
MAJID AL FUTTAIM
VENTURES
Cinemas Gourmet Gulf(JV)
L&E Enova (JV)
Fashion
Finance
99.6% 0.4%
HIGHEST RATED PRIVATELY OWNED CORPORATE IN THE GCC
Rating Agency Rating Outlook Latest Affirmation Date
Standard & Poor’s BBB Stable July 2019
Fitch Ratings BBB Stable Nov 2019
1Majid Al Futtaim Retail closed their hypermarketin Kazakhstan on 30 June 2017
but continue to retain the country head office
7,4458,128
8,7889,436 9,573
10441,145 1,152
1,253 1,261
2015 2016 2017 2018 2019
Revenue EBITDA
24
MAJID AL FUTTAIM GROUP OVERVIEW (2/2)
SOLID FINANCIAL PERFORMANCE ON THE BACK OF A MANAGED GROWTH STRATEGY
FINANCIAL HIGHLIGHTS
Majid Al Futtaim has a proven track record of delivering strong
financial results on the back of an effective growth strategy
MAJID AL FUTTAIM HOLDING LLC CONSOLIDATED FINANCIALS (USDMN)
Item 2015 2016 2017 2018 2019
Assets 13,853 14,375 16,081 16,436 17,178
Revenue 7,445 8,128 8,788 9,436 9,573
EBITDA 1,044 1,145 1,152 1,253 1,261
The Group’s ability to combine capital intensive high margin business (shopping malls) with capital light, high volume business (hypermarkets) allows it to effectively manage its growth.
EBITDA MARGIN BY ENTITY (%)
MAJID AL FUTTAIM RETAIL (USDmn)
MAJID AL FUTTAIM PROPERTIES (USDmn)
MAJID AL FUTTAIM VENTURES (USDmn)63% 63% 64% 64% 65%
5% 5% 5% 5% 5.1%
13% 12% 12% 13% 15%
0%
10%
20%
30%
40%
50%
60%
70%
2015 2016 2017 2018 2019
MAF Properties MAF Retail MAF Ventures
1,114 1,223 1,254
1,264 1,256
710 766 800 814 813
2015 2016 2017 2018 2019
Revenue EBITDA
6,011 6,503 7,049 7,622 7,662
319 335 330 380 391
2015 2016 2017 2018 2019
Revenue EBITDA
393 492 577 651 761
51 72 70 87 113
2015 2016 2017 2018 2019
Revenue EBITDA
25
BUSINESS OVERVIEW: MAJID AL FUTTAIM PROPERTIES
GROUP’S CORE BUSINESS
OVERVIEW OF MAJID AL FUTTAIM PROPERTIES MAJID AL FUTTAIM PROPERTIES’ KEY STRENGTHS
13 Hotels11 in UAE2 in Bahrain
ALLIANCES AND PARTNERSHIPS
WITH KEY RETAILERS
ESTABLISHED TRACK RECORD, REPUTATION
& BRAND
UNIQUE LEISURE OFFERS
(Through Majid Al Futtaim Ventures)
MAJID AL FUTTAIM PROPERTIES
IN-HOUSE EXPERTISE (FULLY INTEGRATED
OPERATIONS)
PRIME LOCATIONS SECURED
FOR BUSINESS
MILLION200 VISITORS AND
GROWING ANNUALLY ACROSS ALL OF OUR MALLS
SHOPPING MALLS SUCCESSFULLY OPERATINGIN 5 COINTRIES ACROSS THE MIDDLEEAST AND NORTH AFRICA26
OVER 1.5MILLION SQM
MILLION SQM OF GLA OF PRIME RETAIL SPACE AND EXPANDING
OVER 1.5 3 NEW PROJECTS IN THE DEVELOPMENTPIPELINE IN 3 COUNTRIES ACROSS THE REGION
171 175 186 192 200
97% 98% 94%95% 93%
72% 75%76% 75% 80%
0%
50%
100%
150%
0
30
60
90
120
150
180
2015 2016 2017 2018 2019
Total Shopping Mall Footfall - Million Shopping Mall Occupancy
Hotels Occupancy
26
MAJID AL FUTTAIM PROPERTIES (1/2)
Mall of the Emirates Opened: 2005 , 255k m2 GLA Occupancy Rate : 94%
City Centre Al Shindagha Opened: 2016 , 25k m2 GLA Occupancy Rate : 92%
City Centre Sharjah Opened: 2001 , 51k m2 GLA Occupancy Rate : 99%
City Centre Ajman Opened: 1998 , 55k m2 GLA Occupancy Rate : 97%
City Centre Fujairah Opened: 2012 , 35k m2 GLA Occupancy Rate : 96%
My City Centre Masdar Opened: 2019 , 18k m2 GLA Occupancy Rate : 77%
My City Centre Al Dhait Opened: 2018 , 5k m2 GLA Occupancy Rate : 71%
My City Centre Al BarshaOpened: 2016 , 4k m2 GLAOccupancy Rate : 86%
My City Centre NasseriyaOpened: 2014 , 5k m2 GLAOccupancy Rate : 77%
City Centre MirdiffOpened: 2010 , 203k m2 GLA Occupancy Rate : 92%
City Centre DeiraOpened: 1995 , 117k m2 GLA Occupancy Rate : 96%
City Centre Me’aisem Opened: 2015 , 23k m2 GLA Occupancy Rate : 92%
UA
E
27
MAJID AL FUTTAIM PROPERTIES (2/2)
Mall of EgyptOpened: 2017 , 162k m2GLA Occupancy Rate : 93%
City Centre Alexandria Opened: 2003 , 64k m2 GLA Occupancy Rate : 95%
City Centre Maadi Opened: 2002 , 30k m2GLA Occupancy Rate : 99%
City Centre Muscat Opened: 2001 , 69k m2 GLA Occupancy Rate : 100%
City Centre Qurum Opened: 2005 , 27k m2GLA Occupancy Rate : 99%
City Centre Beirut Opened: 2013 , 63k m2GLA Occupancy Rate : 92%
City Centre SuharOpened: 2019 , 35k m2GLA Occupancy Rate : 87%
My City Centre Sur Opened: 2018 , 16k m2GLA Occupancy Rate : 93%
City Centre Bahrain Opened: 2008 , 160k m2GLA Occupancy Rate : 96%
OM
AN
EGY
PT
BA
HR
AIN
LEB
AN
ON
City Centre Al MazaOpened: 2019 , 102k m2GLA Occupancy Rate : 83%
28
BUSINESS OVERVIEW: MAJID AL FUTTAIM RETAIL
GENERATING STEADY CASHFLOWS
OVERVIEW OF MAJID AL FUTTAIM RETAIL
306North Africa and CIS Regions
In 15 countries Across the Middle East,
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 approval on new store openings.
CountriesAcross the Middle East, North Africa and CIS Regions
Ca
rref
ou
r
Ou
tlet
s Over45New storesplanned in2020
ExclusiveFranchiseRights for 37
OPERATING FRAMEWORK
Low Prices Good Quality Wide Choices
Majid Al Futtaim Retail aims to capitalize on its strong supply chain and procurement procedures to deliver value to its customers.
Purchasing Power
Reinvest Rebates
Supplier Rebates
Sales Volume
29
MAJID AL FUTTAIM RETAIL
Kuwait
Bahrain
Kazakhstan 1
Egypt
Pakistan
Saudi Arabia
Lebanon
Iraq
Jordan
Oman
Qatar
UAE
Georgia
Armenia
KenyaUganda
Country Hyper Super
UAE 31 73
Oman 10 3
Pakistan 7 1
Bahrain 9 4
Armenia 0 2
Egypt 15 38
Jordan 5 33
Kuwait 3 5
Lebanon 3 2
Kenya 6 1
KSA 18 1
Qatar 5 5
Iraq 4 2
Georgia 2 17
Uganda 1 0
TOTAL 119 1871Majid Al Futtaim Retail closed their hypermarket
in Kazakhstan on 30 June 2017 but continue to retain the country head office
30
BUSINESS OVERVIEW: MAJID AL FUTTAIM VENTURES
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
511 Cinema ScreensAcross the MENARegion
95 Stores in7Countries
Provides unique leisure offerings to Majid Al Futtaim malls
Majid Al Futtaim Leisure & Entertainment LLC
Majid Al Futtaim Finance LLC
Majid Al Futtaim Cinemas LLC
Majid Al Futtaim Fashion LLC
Credit Card Issuer Business
Introduced Visa Cards in 2010
Over 143KCards in Force
JOINT VENTURE COMPANIES
JV providing Energy Services and Facilities Management Formed in 2002 (as Dalkia)
31
ROBUST GOVERNANCE STRUCTURE
BOARD RESPONSIBILITIES
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
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
32
MAJID AL FUTTAIM HOLDING BOARD OF DIRECTORS
Sir Michael RakeChairman
Chairman of Phoenix Global Services and Wireless Logic Group
Former Chairman of BT Group and KPMG International
Sir Ian DavisNon-Executive Director
Chairman of Rolls Royce andformer Worldwide Managing Director at
McKinsey & Company
Tariq Al FuttaimNon-Executive Director
Former chairman of the Majid Al Futtaim Charity Foundation
Alan KeirNon-Executive Director
Non Executive Director atHSBC UK Bank Plc
Non Executive Director atSumitomo Mitsui Banking Corporation
Victor ChuNon-Executive Director
Chairman of FirstEastern Investment Group
Co-founder and director of Peach Aviation
Lord RoseNon-Executive Director
Chairman of Ocado andNon Executive Director of Woolworths
Holding LimitedFormer CEO of Marks and Spencerplc
Luc VandeveldeNon-Executive Director
Founder and Chairman of Change Capital Partners LLP
Former Chairman of the Carrefour Group and Mark and Spencer
Philip BowmanNon-Executive Director
Independent Director of FerrovialS.A Former Chief Executive of Smiths
Group plc and Director of Burberry Group
Alain Bejjani Chief Executive Officer of Majid Al FuttaimHolding
Former Executive Vice-Chairmanof the Investment Development
Authority of Lebanon
33