Investor Presentaiton

Robust Profitability with Improving EBITDA Margin EBITDA | SAR MN FFO | SAR MN (1) Net Income | SAR MN 66.9% 68.0% 65.4% 59.3% 1,434 1,481 1,414 49.8% 49.9% 1,272 44.7% 1,075 1,086 36.4% 959 786 36.9% 804 FY17 FY18 FY19 FY17 EBITDA Margin FY18 FFO Margin FY19 FY17 FY18 FY19 Net Income Margin Improved EBITDA was driven by higher revenue along with efficiency and cost-control initiatives, including renegotiating third-party contracts for direct services such as cleaning, security and outsourced manpower. Additionally, ACC booked lower accounts receivables impairment due to a change in provisioning policy (implementing an Expected Credit Loss model in line with IFRS 9), as well as management's efforts to improve the company's collection process. FFO was up 1.0% y-o-y in FY2019 to SAR 1,086 million compared to SAR 1,075 million in the previous year. FFO margin was 49.9%, up 0.1 percentage points compared to the 49.8% recorded in FY2018. Net income for the year recorded a 2.3% y-o-y increase in FY2019 to SAR 804.1 million, yielding a 0.5 percentage-point improvement in net income margin to 36.9% compared to the previous year. Improved bottom-line profitability came despite increased finance charges, which were partially offset by a SAR 75.1 million reversal of a Zakat provision during the year. 1) Fund from operations: net profit for the year plus depreciation of investment properties and PP&E and write-off of investment properties, if applicable. Arabian Centres Company. Investor Presentation 19

View entire presentation