Investor Presentation December 2014

Transcription

1 Investor Presentation December 204 All figures as at end of 30 September 204, unless otherwise stated

2 Outline. Introduction A. Why Egypt B. Real Estate Sector C. SODIC s Unique Value Proposition D. 204 A Year in Review 2. SODIC Backdrop A. SODIC Quick Overview B. Clean and Growing Land Bank C. Looking Forward: Our Strategy D. Experienced Management Team 4. Operational & Financial Performance A. Sales Performance & Unrecognized Revenues B. Launched Projects Profitability C. Delivery and Execution D. 9M 204 Vs. 9M Annex A. Projects Overview B. Awards B. Egypt Macroeconomic & Real Estate Sector Overview

3 Introduction

4 Why Egypt 3.5% GDP growth in 205 Population of 90 Mn¹ 500,000 Units Retail sales of EGP 868 Bn² Tangible Improvement in Political & Economic Backdrop With a GDP of US$ 280Bn Egypt remains one of the largest markets in the region Re-embarking on the growth trajectory with GDP growth set to reach 4% growth in 207 The largest in the region 60% below the age of 30 Growing at a rate of 2% Sizable annual demand for housing In addition to housing shortage of.5m units Estimated to reach EGP,400 Bn in 208² Currently formal retail accounts for only around 2% of total retail trade³ Government achieving significant strides with reforms FDI picking up targeting US$6bn in 205, with spill over effect on commercial property market Revival of tourism activity +7% in 3Q4 Banks increased appetite for lending Government reopens land supply, explores different models including profit sharing & in-kind payments 4 Source: CAPMAS, IMF, US Census, Central Banks of respective countries and Industry reports; Data as at 3/2/203 ² Source: EIU ³ Source: KPMG report AFRICA S CONSUMER STORY

5 Real Estate Sector Residential and beyond Strong fundamentals and an opportune entry point Against this improving economic backdrop, the country is witnessing increased confidence in the real estate market. Demand remains relatively active across all segments and developers are moving forward with both new and re-launched projects. Rental growth is expected to accelerate across all real estate asset classes giving way for further property appreciation JLL: Cairo Prime Rental Clock Q3 204 Rental Growth Slowing Source: JLL Rental Growth Accelerating Residential Rents Falling Rents Bottoming Out Office Retail Residential Strong performance despite downturn, backed by fundamentals Favorable demographics; young & growing population Annual demand for housing estimated at 500,000 units Strong performance of gated communities vis-à-vis haphazard developments Significant price increases backed by real demand as well as inflation and devaluation fears Gross sales for key developers well above pre-revolution levels Gross Pre-Sales of Key Developers¹ EGP Mn 5 ¹ Key developers include SODIC, Palm Hills and Talaat Mostafa

6 Real Estate Sector Residential and beyond Commercial Market to rebound given the improved operating environment Retail Fragmented market with huge potential for organized retail space Increased interest from international tenants with the influx of FDI Improved bank appetite to lend will help expedite development as well as support property purchases by local companies that prefer to own rather than lease office space Currently formal retail accounts for only around 2% of total retail trade. Cairo organized retail space per capita estimated at 0.06 well below regional averages Secondary cities virtually untapped Foreign Direct Investments US$ Mn Source: CBE, analyst estimates Retail Sales EGP Bn Source: EIU Hospitality Tourism set to revive on the back of political stability Attractive investment opportunities in undeveloped areas such as the West coast of the Mediterranean Tourism activity picking up with tourist nights increasing by 7.% y-o-y in 3Q4 6

7 SODIC s Unique Value Proposition 2 3 Significant Brand Equity Strong demand for SODIC products (93% of launched inventory sold) Pricing at a premium to the market Reputation of timely deliveries One of the first to settle disputes achieving a clean land bank in 204 Track Record & Management Full cycle experience: Successful navigation through the downturn Strong operational performance & resilient financial results successfully launched projects Management continuity since 2006 Scalable Operation Significant in house capacity with a team of 476 professionals Ability to acquire and execute sizable plots (30 plot launched 6 months from award) Capacity to raise the required funding to secure timely execution Strong relationship with suppliers Solid Growth Strategy Execute existing pipeline: EGP 7bn over 5 years Expand land bank: acquisitions &/or asset light structures Diversify locations: coastal cities and secondary cities Build up recurring income portfolio 7

8 204 A Year in Review Q4 Strong start to the year s sales, Solidaire settlement & drawdown on syndicated loan 3 mega villas sold in Allegria worth EGP 52 million; 27 offices sold in The Polygon worth EGP 79 million Amicable Settlement with Solidere International (SI) unlocking 250,000 sqm of land in the heart of Westown Westown Residences Phase X launch worth EGP 53 million selling out SODIC West Syndication Drawdown: Tranche A worth EGP 330 million, refinancing 3 existing facilities 3Q4 Shoring up our finances, both debt & equity, ETR Launch fully sold Signature of EGP 950 million loan with AAIB (30 Acre); EGP 255 million drawdown in less than 2 weeks EGM approves EGP billion capital increase to existing shareholders Signature of EGP 300 million loan with CIB (SI Blocks) ETR Phase VII launch worth EGP 353 million selling out 2Q4 Eastown settlement, 30 award & new launches on Eastown Residences Eastown settlement of EGP 900 million payable over 7 years Ripplewood acquires 9.4% stake Eastown Residences (ETR) Phase V launch worth EGP 246 million selling out 30 Acre award letter received ETR Phase VI launch worth EGP 359 million selling out EGX approves capital increase subject to EGM approval 4Q4 Capital increase 99.3% subscribed for, new launches on Westown & SODIC East Successful closure of circa EGP bn capital increase New launches on Westown Residences Courtyard EGP 250 million New Launches on SODIC East 8

9 SODIC Backdrop

10 SODIC Quick Overview Egypt s trusted developer, emerging stronger post revolution Brief Overview Building on a history of almost two decades of successful operations in Egypt, SODIC is one of the country s leading real estate development companies, bringing to the market award-winning large scale developments to meet Egypt s ever growing need for high quality housing, commercial and retail spaces. Headquartered in Cairo and listed on the Egyptian stock exchange, SODIC is one of the few non-family owned companies traded on the EGX, with a strong corporate governance framework Having invested over.4 billion dollars in developing eleven diverse real estate projects, SODIC boasts a portfolio that has contributed over 3 million square metres of built up area to Cairo s new urban communities³. Key Highlights EGP.4 bn, Of Contracted Sales, over 4,800 units EGP 5. bn, Of unrecognized revenue² EGP 730 mn, Of sellable inventory² EGP 4 bn, Of receivables backlog² 3.6 mn sqm Of non launched & raw land bank² Over 96% Collection rate for receivables² Over,800 Delivered units EGP 7.0 bn Expected Sales from Non Launched and Raw Land Bank 0 Since Inception, excluding Beverly Hills including commercial and retail ² As of 30 th September 204 ³ Including Beverly hills

11 Impressive Growth Performance Despite the Downturn SODIC has grown by every metric since 20 Record gross contracted sales set to exceed 203 EGP Mn 2,730 74,89 2,60 2,55 Cancellations at an all time low Pct of Gross Sales 99% % 9% 9% 6% Continuing to Deliver on Schedule Units Delivered a 202a 203a 9M3 9M4 20a 202a 203a 9M3 9M4 20a 202a 203a 9M3 9M4 Receivables doubled while delinquency dropped to a record 4% EGP Mn 4,076 3,604 2,452,724 Significant addition to land bank in 204 Mn sqm 42% 3.6Mn sqm 58% Market Cap more than doubled in 204 EGP Bn 4.8 Bn 2 Bn 20a 202a 203a 204a* Existing Newly acquired * As of 30 Sept 204

12 Clean & Growing Land Bank Significant presence in both East and West Cairo With 3.6Mn sqm of unutilized land SODIC is developing around 760,000 sqm annually, bringing to the market EGP7Bn of inventory over the coming 5 years 2

13 Clean & Growing Land Bank Land bank sits free of any legal disputes Land Utilization Unlaunched & Raw Land Unlaunched & Raw Land 9.7m sqm¹ 3.6m sqm 3.6m sqm West Cairo. Launched Projects Land Area Allegria 2.4m sqm Forty West 56k sqm Westown Residence 584k sqm The Polygon 44k sqm The Strip 05k sqm Westown Hub 50k sqm CASA 294k sqm Beverly Hills.9m sqm Other 2 260k sqm Total Launched Projects 5.7mn sqm 2. Unlaunched Projects Land Area Westown Residential 359k sqm Westown Retail/Commercial The Strip (Phase 2) The Polygon Total Non Launched 3. Raw Land Al Yosr Total Raw Land 9k sqm 82k sqm 9k sqm 59k sqm.26mn sqm.26mn sqm East Cairo. Launched Projects Land Area Eastown Residential 322k sqm Kattameya Plaza 26k sqm Total Launched Projects 448k sqm 2. Unlaunched Projects Eastown Residential 377k sqm Eastown Retail 59k sqm Villette [30 Acre] Residential.0mn sqm Villette [30 Acre] Retail/Comm. 229k sqm Total Non Launched Projects.79mn sqm Total Land Bank 7.5mn sqm Total Land Bank 2.2mn sqm 3 Excluding Syria Land Bank (Fully Impaired) 2 Includes Designopolis, BISC and Infrastructure assets

14 Looking Ahead: Our Strategy Execution of existing pipeline Execution of EGP 7Bn worth of unlaunched inventory Delivering some 8,000 residential units over the coming 6 years Collect EGP 4 bn of receivables of existing sales while maintaining a collection ratio above 95% Expand land bank Build up recurring income Other long term upside potential Locations of interest include: New urban communities (East & West of Cairo) Secondary homes on coastal cities (significant cross selling opportunity & mitigating our current seasonality of primary homes sales) Secondary cities offer untapped opportunities in Egypt Exploring JV s, co-development and other asset light structures as a means to expand operations with a less capital intensive approach Gradual build up of our recurring income portfolio, targeting 20% of our revenues Adding circa 20,000 sqm of GLA to our currently launched lease portfolio aiming to reach circa 65,000 sqm of GLA Leveraging our existing property and facility management company EDARA and further developing its expertise Monetize Syria land (completely written off the balance sheet) Develop El Yosr (.3M sqm of raw land in West Cairo) 4

15 Executive Management Team Leadership continuity since the turnaround in 2006 Managing Director Mr. Ahmed Badrawi Appointed MD in 203 Joined SODIC in 2006 Previously founder of InfoFort Egypt s first records management business, launched the Daily Star Egypt Law degree from University of London Executive Director Of Operations Mr. Ashraf Farid Joined SODIC in 2007 Previously held managerial positions at Al-Futtaim Group & Allianz Group Bsc in Economics and Financial Management from Cairo University, Associate of the Chartered Insurance Institute in London (ACII) - (UK) Chief Technical Officer Eng. Shehab el Orabi Joined SODIC in 2009 Previous experience includes senior roles at Nakheel, Hill International Project Management Firm, Turner International and Bechtel Inc. MBA from Golden Gate University, B.Sc. from UC Berkeley Chief Commercial Officer Mr. Ahmed Labib Joined SODIC in 2007 Previous experience includes 7 years at the consumer relations department in British American Tobacco as well as in the marketing department of McDonalds Bsc from the American University in Cairo Chief Financial Officer Mr. Omar El Hamawy Joined SODIC in 203 Previously Investment Banking Division Director at Beltone Financial having executed many of the landmark real estate transactions in Egypt Bsc Business Administration from the AUC and is a CFA Charter holder Chief Projects Development Officer Mr. Basil Ramsy Joined SODIC in 200 Previously Managing Partner at Delta Enterprises, USA. Co-founder and CEO of Sarmady Communications Masters from Georgia Institute of Technology, undergraduate degree from Carnigie Mellon University 5

16 6 Operational & Financial Performance

17 Sales Performance & Unrecognized Revenues FY 204 is expected to exceed record breaking FY 203 0, Annual Net Sales (EGP Million) 203 9M4 9,000 Regular Operating Environment Global Financial Recession Regular Operating Environment Jan 25 th Revolution Regular Operating Environment June 30 th Revolution Regular Operating Environment 8,000 7,000 6,000 5,000 Allegria Phase &2 launch Some 650 Allegria units contracted Launch of: Allegria phase 3 & 4 The Polygon Forty West The Strip Cumulative Sales: EGP 2.7 Billion KP launch achieving EGP 250 million of sales Cumulative Sales: EGP 4.6 Billion Launch of: Small offices in The Polygon Westown Residences WTR Phase Turmoil causing EGP 735 million in cancellations Cumulative Sales: EGP 4.6 Billion Launch of: Allegria phase 5 WTR Phases 2 to 6 WTR achieved sales of some EGP billion Cumulative Sales: EGP 6.2 Billion Launch of: WTR phases 7, 8 & 9 Eastown Residences ETR phases to 4 account to 50% of total sales Launch of: WTR phases 0 ETR phases 5-7 WT Courtyard 4,000 3,000 2,000,884,839,69 2, ,09 2, Cumulative Net Sales (EGP mn) Net Sales (EGP mn) Some EGP 0.4 billion of net sales since 2008 of which 55% yet to be recognized 7 Monthly Sales from January 2008 to Sept 204. Unrecognized revenues accounting for EGP 5.7 billion as at 30 th of September Actual Contracted Net Sales as at 30 th of September 204.

18 Project Profitability Launched Projects Profitability GPM of 34% on some EGP 0 billion of unit sales Sellable Inventory Profitability Percentage Sold (Value) Project (EGP millions) Total Inventory Development Cost 3 Sold Inventory Projects GPM 4 Sold Unsold Allegria 2 4,392 2,73 4,202 38% 96% 4% Polygon % 76% 24% Forty West % 67% 33% KP % 97% 3% WTR (I-X) 2,233,304 2,220 42% 99% % ETR (I-VII) 2,79,490 2,043 32% 94% 6% Total 0,747 7,097 0,023 34% Pricing Ability 93% 7% 6,09 6,437 6,720 6,826 Eastown Prices (EGP/sqm) 8,338 8,855 0,000 66% increase Launch Date Phase I Phase II Phase III Phase IV Phase V Phase VI Phase VII May 3 May 3 June 3 Sept. 3 May 4 June 4 Sept 4 8 All figures in EGP unless otherwise stated 2 Unsold Allegria inventory amounts to EGP 88 mln (6 units), 3 Includes the investment cost of leasable assets 4 Expected gross profit margin, excluding NPV adjustments

19 Delivery and Execution SODIC delivered some 36 units during 9M 204 across 8 different projects, namely: Allegria, Kattameya Plaza, Forty West, The Polygon, The Strip, Casa,WT Hub & WTR Delivery Execution Project Number of Units Delivered Units % Delivered Delivery Start Date Delivery End Date Investment Cost 2 % Completion 3 Allegria Kattameya Plaza Forty West WT Residences (I-X) The Polygon The Strip WT Hub,255,094 87% ,73 90% % % % %, % ,304 33% % % % % % % ET Residences (I-VII), ,490 % CASA % NA 00% Total 4,983,80 36% From 200 to 207 EGP 7,453mn NA 9 Over 4,900 units under development (36% delivered) with an investment cost of some EGP 7.4 billion All figures as at 30 th of Sept Investment cost represents the expected construction and land costs. Figures are in EGP millions. 3 Percentage completion represents CAPEX paid, with the exception of Eastown and Allegria all projects land cost has been fully paid 4 Westown Residences Phase I shows an 96% development completion on a standalone basis. 5 CASA is a jointly owned project (80% Palm Hills subsidiary & 20% SODIC). SODIC owns 63 apartments

20 9M 204 Vs 9M 203 Building on strengths Item (in EGP mn unless otherwise stated) 9M 204 9M 203 Variance % Gross Contracted Sales 2,56 2,59 0% Net Contracted Sales 2,09,965 3% Number of Units Sold (units) 90,099-8 Net Contracted Sales From New Launches,348,285 5% Cash Collected, % CAPEX % Number of Units Delivered (units) Value of Units Delivered % % Gross Profit Net Profit % % Debt Raised/Secured 2, % Cash at banks & on hand, % 20

21 2 Annex

22 Launched Projects Summary¹ Project description Residential Single Family Units Upper Middle Class Apartment Buildings Integrated mixed-use office park High-end Apartments Various Types of Residential Units Residential Units Retail stretch mall Entertainment retail complex Gross land area 2,428,283 26,000 53,05 56,02 943, ,405 87,80 50,090 Gross BUA 568,774 2,739 9,338 5, , ,725 52,296 5,576 Launched as a pct of project gross land area 00% 00% 00% 82% 00% 62% 46% 56% Value sold as a pct of launched 96% 97% 76% 67% 99% 94% 98% NA Delivery 79% 78% 46% 45% 9% 0% 56% Execution 90% 98% 74% 90% 33% % 76% 94% As at 30 Sept

23 Project Overview Project description SODIC s flagship project, Allegria is an award winning residential development offering high end single family units surrounding an 8 hole Greg Norman golf course Launch date 2008 Receivables outstanding 840 Gross Land Area (sqm) 2,428,283 Development cost for launched¹ 2,73 Total BUA 568,774 Capex remaining for launched 0% Launched BUA 568,774 Delivery start 200 Launched inventory value 4,392 Delivery end 205 Sold inventory 4,204 Value of units delivered 3,34 Units launched,255 Number of units delivered, Including land cost All figures as of Sept 204 in EGP mn unless otherwise stated

24 Project Overview Project description Forty West is an exclusive development with a cutting-edge design by acclaimed Boston-based Machado and Silvetti Architect. It is the coming together of a vibrant community with spectacular fully-finished apartments, offices, boutiques, world-class restaurants, open spaces and a luxurious hotel. Launch date 2009 Receivables outstanding 46 Gross Land Area (sqm) 56,02 Development cost for launched¹ 495 Total BUA 5,997 Capex remaining for launched 0% Launched BUA 5,997 Delivery start 202 Launched inventory value 589 Delivery end 205 Sold inventory 394 Value of units delivered 77 Units launched 33 Number of units delivered 55 Gross Leasable Area 9,732 Estimated Lease Income 4 24 Including land cost All figures as of Sept 204 in EGP mn unless otherwise stated

25 Project Overview Project description Westown s first residential neighbourhood, offering townhouses, twin-houses, city villas, signature lofts, duplexes and apartments. The development brings together themed gardens, parks, and open green spaces, set in a secure, gated community designed around the Pedestrian Green Spine. Launch date 20 Receivables outstanding,356 Gross Land Area (sqm) 584,33 Development cost for launched¹,304 Total BUA 344,663 Capex remaining for launched 67% Launched BUA 344,663 Delivery start 204 Launched inventory value 2,233 Delivery end 207 Sold inventory 2,220 Value of units delivered 96 Units launched,39 Number of units delivered Including land cost All figures as of Sept 204 in EGP mn unless otherwise stated

26 Project Overview Project description The Polygon consists of nine Class A office buildings designed by multiple-award-winning UK-based architects Wilkinson-Eyre. The Polygon offers over 70,000 sqm of state-of-the-art office space, designed to accommodate both smaller and large businesses. Launch date 2009 Receivables outstanding 308 Gross Land Area (sqm) 53,05 Development cost for launched¹ 639 Total BUA 9,338 Capex remaining for launched 26% Launched BUA 75,338 Delivery start 203 Launched inventory value 72 Delivery end 206 Sold inventory 539 Value of units delivered - Units launched - Number of units delivered - Gross Leasable Area² 7,52 Estimated Lease Income² Including land cost ²Launched areas only All figures as of Sept 204 in EGP mn unless otherwise stated

27 Project Overview Project description Designed by leading Egyptian architectural firm Hassan Abu Seda, the Hub consists of five multi-leveled buildings around one central piazza creates a truly unique retail space. Westown Hub is home to some of Cairo s finest restaurants and cafés. Launch date 202 Development cost for launched¹ 66 Gross Land Area (sqm) 50,090 Capex remaining for launched 6% Total BUA 5,576 Delivery start 204 Launched BUA 5,576 Delivery end 205 Gross Leasable Area² 3,240 Estimated Lease Income² Including land cost All figures as of Sept 204 in EGP mn unless otherwise stated

28 Project Overview Project description With stores arranged side by side and linked by a walkway, The Strip offers mixed retail shops and personal services over seven zones in a relaxed and contemporary environment. Launch date 200 Receivables outstanding 43 Gross Land Area (sqm) 87,80 Development cost for launched¹ 24 Total BUA 52,296 Capex remaining for launched 24% Launched BUA 30,044 Delivery start 202 Launched inventory value 338 Delivery end 205 Sold inventory 332 Value of units delivered 87 Units launched 53 Number of units delivered 27 Gross Leasable Area² 6,62 Estimated Lease Income² 5 28 Including land cost ²Launched areas only All figures as of Sept 204 in EGP mn unless otherwise stated

29 Project Overview Project description Kattameya Plaza is comprised of 474 apartments, and is strategically located in the heart of New Cairo, five minutes away from Eastown and the American University in Cairo. Kattameya Plaza is designed and master-planned by ArchGroup - the distinguished firm that designed the Grosvenor House in Dubai, and landscaped by Evergreen. Launch date 200 Receivables outstanding 255 Gross Land Area (sqm) 26,000 Development cost for launched¹ 438 Total BUA 23,733 Capex remaining for launched 2% Launched BUA 23,733 Delivery start 202 Launched inventory value 64 Delivery end 205 Sold inventory 624 Value of units delivered 485 Units launched 488 Number of units delivered Including land cost All figures as of Sept 204 in EGP mn unless otherwise stated

30 Project Overview Project description Strategically located on Road 90, adjacent to the American University in Cairo and just a short drive from Cairo International Airport, Eastown will provide premium residential, retail and office space all set in a secure, gated community. Launch date 203 Receivables outstanding,356 Gross Land Area (sqm) 857,963 Development cost for launched¹,490 Total BUA² 573,725 Capex remaining for launched 89% Launched BUA 279,432 Delivery start 206 Launched inventory value 2,79 Delivery end 207 Sold inventory 2,043 Value of units delivered - Units launched,286 Number of units delivered - 30 Including land cost ²Residential BUA only All figures as of Sept 204 in EGP mn unless otherwise stated

31 Awards A globally recognised developer EUROMONEY 204: Best office business developer in Egypt (Polygon) EUROMONEY 20: Best developer overall Egypt 20: Best mixed use developer Mena 20: Best residential developer Mena CITYSCAPE 203: Allegria - best residential project Built 203: The Polygon - best commercial and mixed use project Future MINISTRY OF TRADE & INDUSTRY 200: Enterprise Innovation Award for registering all of its trademarks with the Internal Trade Development Authority, an affiliate of Ministry of Trade and Industry BUSINESS TODAY EUROMONEY 20: Best company by BT00 rank change at the BT00 Crystal Awards 200: Best developer overall Egypt 200: Best mixed use developer Mena CNBC PROPERTY AWARDS EUROMONEY CNBC Arabian Property 2009: Allegria best architecture CNBC Property 2008: Allegria best development in Egypt with a 5-star award CNBC Property 2008: Allegria best golf course development with a 4-star award 2007: Allegria award of merit from the American Society of Landscape Architects (ASLA) for its master plan, developed by world-renowned master planners EDAW 3

32 32 Egypt Macro Economic and Real Estate Sector Overview

33 Improving Macro Economic Indicators Planned government initiatives to address long-standing economic issue The government has embarked on a number of schemes that aim to address economic issues These initiatives are expected to have positive effects on macro economic indicators Recent Government Initiatives Subsidy Reforms In July 204, the Egyptian government kicked off a much-awaited fiscal consolidation, aiming to bring the fiscal deficit towards a sustainable path and revive economic growth. The approved measures constitute: Rationing wide-range of fuel products Re-pricing of electricity and outlining a fiveyear plan for phasing out fuel subsidies Increasing sales taxes on tobacco and alcohol Item Annual Saving (EGP Bn) Diesel 6.8 Gasoline 8.9 Fuel Oil 4.0 Natural Gas 3.7 Electricity 8.5 Cigarettes & Alcohol 4.5 Total 46.4 % of GDP 2.0% Macroeconomic Indicators Real GDP Growth 2 5.2% 4.5% 3.3% 2.2% 2.% 2.3%.8% June 0 June June 2 June 3 June 4 June 5 June 6 Budget Deficit (%GDP) 3 3.7% 2 Mortgage Finance 8.% 9.8% 0.8% 2.0% 2.0% 0.4% The government is stimulating private and household credit through the launch of an EGP 0bn programme by CBE to promote mortgage finance The programme would lend banks funds at preferential rates for maturities of more than 0 years that would be utilized in the financing mortgage for low and middle income families June 0 June June 2 June 3 June 4 June 5 June 6 Inflation 2 3 Suez Canal & New Road Network The government recently announced to build a new Suez Canal alongside the existing 45-year-old historic waterway with an estimated cost of USD 8.2 bn (including building underground tunnels) to be completed in five years. The new canal is set to boost annual revenues to USD3.5 bn by 2023 from USD5.2 bn in FY2/3 3,600 KM of new roads to be constructed at a cost of EGP 36 billion 2% % 9% 7% 0% 0% 8% June 0 June June 2 June 3 June 4 June 5 June 6 33 Source: Bloomberg, Reuters, EFG Hermes Research 2 Source IMF 3 Expected budget deficit is based on press release by the Ministry of Finance

34 Improving Macroeconomic Indicators Egypt s macroeconomic backdrop Following the 30 th of June protests and the ouster of ex president Morsi, several Macro indicators showed signs of improvement with CDS spread dropping from an alarming 900 bps and a drop in year T-bill yield Macro risk receded with the support package promised by Saudi Arabia, UAE and Kuwait. The aid received pulled the breaks on further devaluation of the EGP and revered the constant decrease in Egypt s foreign reserves Egypt Spot & 2 Months Non Deliverable Forward Spot Forward Jan- Jul- Jan-2 Jul-2 Jan-3 Jul-3 Jan-4 Jul-4 Recent Government Initiatives Post 25 th Jan Revolution CDS Spread (basis points) Post Presidential Elections 900 Post 30 th June Protests Jan- Jul- Jan-2 Jul-2 Jan-3 Jul-3 Jan-4 Jul-4 Year T-Bill Yield (%) Dollarization (% of Total Deposits) 4.9% Due to MPC s decision to raise lending and deposits rate by 00 bps 23% 270 Incoming International Support Packages Country Received Total Pledged 2.2% 2 9% USD 4.0 bn USD 6.9 bn Jan- Jul- Jan-2 Jul-2 Jan-3 Jul-3 Jan-4 Jul-4 Jan- Jul- Jan-2 Jul-2 Jan-3 Jul-3 Jan-4 Jul-4 USD 8.6 bn USD 2.2 bn Stable FX Reserves (USD Billion) USD 3.0 bn USD 4.0 bn USD 5.6 bn USD 23. bn Jan- Apr- Jul- Oct- Jan-2 Apr-2 Jul-2 Oct-2 Jan-3 Apr-3 Jul-3 Oct-3 Jan-4 Apr-4 Jul-4 Oct-4 34 Source: Bloomberg, IMF, CBE 2 Due to the Monetary Police Committee s decision to raise overnight lending and deposits rate by 00 bps

35 Encouraging Real Estate Market Dynamics Young population to fuel growth Egypt's large and growing population is a key asset compared to its MENA counterparts The country is set to exhibit a strong working age population growth over the coming period The growing marriage rate (standing at 933 thousands marriages per annum), coupled with increasing urbanization levels have resulted in an increased demand for housing units Recent government initiatives relating to mortgage financing are expected to further enhance demand Population & Growth Vs Arab States Population (mn) Growth (%) % % % 2% 3% 25 5% Market Drivers Remain Intact 3% Market Characteristics / Trends 2% World Average:.2% Market characterized by a small number of densely populated cities, with low urbanization. Cairo is one of the most dense metropolitan areas in the world Sales are supported by a large population with an increasing number of marriages to spur demand 6% Strong pent-up demand still not matched by equal supply (housing gap estimated at not less than 200k units annually) Inefficiencies of public sector players led to emergence of a number of mega private sector developers Summer 204 witnessed an increasing demand for secondary homes ,048 Q > <0 2Q 2,083,788,77,466,50,452 3Q 4Q 22% Q 2 Demographics 20% 2% Female 3% Encouraging Real Estate Market Dynamics 2 2Q 2 7% % 2% 2% 4% 4% 3Q 2 Male 7% 4Q 2 % 3% 9% 3,202 2,84 Q 3 23% 2% 25% 5% 5% 5% 5% 25% Gross Pre Sales for Key Developers 3 (EGP mn. FX Rate) 2Q 3 Young population (around 60% below the age of 30),784 3Q 3 3,06 4Q 3 3,747 Q Source: CAPMAS, IMF, US Census, Central Banks of respective countries and Industry reports; Data as at 3/2/203 2 Source: Jones Lang LaSalle, Bloomberg, Company Financial Statements 3 Key developers include SODIC, Palm Hills and Talaat Mostafa

36 Disclaimer This Presentation is intended for information purposes only and does not constitute or form part of an offer for sale or subscription or an invitation or solicitation of an offer to subscribe for or purchase securities of any kind and neither this document nor anything contained herein shall form the basis of any contract or commitment from any party whatsoever. Information, including but not limited to financial information, in this presentation should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities or any other instruments in or, in entities related to, SODIC or any other company. This Presentation contains important and privileged information on SODIC which is solely owned by SODIC and may not be relied on or used by any person whosoever for any purpose, and therefore shall be kept secret and confidential by any receiving party. This document includes forward-looking statements. The words "believe", "anticipate", "expect", "intend", "aim", "plan", "predict", "continue", "assume", "positioned", "may", "will", "should", "shall", "risk" and other similar expressions that are predictions of or indicate future events and future trends identify forward-looking statements. These forward-looking statements include all matters that are not historical facts. In particular, the statements regarding strategy and other future events or prospects are forward-looking statements. Recipients of this document should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are in many cases beyond the control of the Company. By their nature, forward-looking statements & projections involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance and the Company's actual results of operations, financial condition and liquidity, and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this document. The cautionary statements set forth above should be considered in connection with any subsequent written or oral forward-looking statements that the Company, or persons acting on its behalf, may issue. Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trends, the economic and political climate of Egypt, the Middle East and changes in business strategy and various other factors. All information contained in this presentation, including but not limited to information relating to the Egyptian real estate and financial markets, are compiled from sources known to be reliable and/or publicly available data reasonably assumed to be accurate (the Source Data ). The Source Data may contain errors and/or inaccuracies; SODIC provides no warranties or guarantees of any kind, expressed or implied, and accepts no responsibility whatsoever, with regard to the accuracy, completeness or correctness of the Source Data used in the Presentation. This disclaimer is to be considered an integral part of the Presentation and SODIC s liability in respect of this Presentation and is to be governed by Egyptian law under the jurisdiction of Egyptian courts. 36

37 Thank You For SODIC investor relations enquiries contact: Heba Makhlouf Tel: SODIC IR website: ir.sodic.com SODIC corporate website: