Amer Group Holding · EGX:AMER
Amer — Investor Presentation (September 2012)
60 slides from Amer's investor presentation, September 2012
Slide 1: Investor Presentation
Investor Presentation September 2012
Slide 2: Disclaimer
Disclaimer You must read the following before continuing. This presentation has been prepared by the Investor Relations, Corporate Finance and Management of Amer Group Holding Company S.A.E. (the “Company”) solely for information purpose to Research Analysts / Institutional Investors. The presentati
Slide 3: Current Shareholding Structure and Market Cap
Current Shareholding Structure and Market Cap o Rated as highest trading stock in Egypt in 2011 o Total Market Cap EGP2.4 billion as of September 2012 ( Share Price EGP 0.80 X 3040 Million shares) Amer Group’s Shareholding Structure SOL Global Mohamed El- Fineby Estates Amer Wakf Ltd Mansour Amer Fr
Slide 4: Group Overview
Group Overview Private and Confidential: For personal use only and not for distribution or copying
Slide 5: Amer Group: Master of Local Brands
Amer Group: Master of Local Brands Real Estate Contracting New Ventures Malls Restaurants Hotels 5 operational 9 Ongoing projects GLA of 52,087 sqm CSR 6 operational Hotels with 988 keys 50 outlets Land Bank 5.1 mn sqm (10,717 seats) 4 Private and Confidential: For personal use only and not for dist
Slide 6: Porto World
Porto World Private and Confidential: For personal use only and not for distribution or copying
Slide 7: Porto Marina
Porto Marina January 2005 6 Private and Confidential: For personal use only and not for distribution or copying
Slide 8: Porto Marina: 24/7 Non-Stop Construction
Porto Marina: 24/7 Non-Stop Construction June 2005 7 Private and Confidential: For personal use only and not for distribution or copying
Slide 9: Porto Marina
Porto Marina El Alamein, Egypt June 2006 Key Facts about the project: Land Area 68,000 sqm Total Residential Units 927 BUA 182,000 sqm Residential Units sold 773 units Residential BUA 117,685 sqm Meeting point BUA 18,745 sqm Hotel Keys 379 8 Private and Confidential: For personal use only and not fo
Slide 10: Porto Marina Golf: It was a Quarry
Porto Marina Golf : It was a Quarry June 2006 9 Private and Confidential: For personal use only and not for distribution or copying
Slide 11: Porto Marina Golf: Golf Course Started
Porto Marina Golf : Golf Course Started 6 Months Later 10 Private and Confidential: For personal use only and not for distribution or copying
Slide 12: Porto Marina Golf: The Destination was Ready
Porto Marina Golf : The Destination was Ready 18 Months Later Key Facts about the project: Land Area 1,821,000 sqm Total Residential Units 12,500 units BUA 1,441,300 sqm Residential Units sold 5,307 units Residential BUA 1,329,820 sqm Retail BUA 9,990 sqm Hotel 148 keys 11 Private and Confidential:
Slide 13: Porto Sokhna: Time for Red Sea Mountains
Porto Sokhna: Time for Red Sea Mountains 2007 12 Private and Confidential: For personal use only and not for distribution or copying
Slide 14: Porto Sokhna: A Lifestyle Landmark was Born
Porto Sokhna: A Lifestyle Landmark was Born Ain Sokhna, Egypt 2009 Key Facts about the project: Land Area 152,244 Sqm Total Residential Units 1,670 units BUA 308,654 Sqm Residential Units sold 1,558 units Residential BUA 202,933 sqm Retail 10,313 Sqm Hotel 139 keys 13 Private and Confidential: For p
Slide 15: Golf Porto Sokhna
Golf Porto Sokhna Ain Sokhna, Egypt Key Facts about the project: Land Area 2,174,696 sqm Total Residential Units 5,169 units Total BUA 903,338sqm Residential Units sold 3,212 units Residential BUA 634,264 sqm Retail 11,173 sqm Hotel 200 keys 14 Private and Confidential: For personal use only and not
Slide 16: Porto Tartous: Our First Project in Syria
Porto Tartous: Our First Project in Syria Tartous, Syria Key Facts about the project: Land Area 186,000 sqm Total Units 3,715 units Residential BUA 371,500 sqm Units Sold 86 units Retail 106,547 sqm Hotel 250 keys 15 Private and Confidential: For personal use only and not for distribution or copying
Slide 17: The Porto World Concept With a Clear Consumer Perception
The Porto World Concept In 2005, Amer Group created Porto World: the first branded real estate concept in the region With a Clear Consumer Perception 16 Private and Confidential: For personal use only and not for distribution or copying
Slide 18: Porto World's Core Menu
Porto World‟s Core Menu 17 Private and Confidential: For personal use only and not for distribution or copying
Slide 19: Applied in Different Locations
Applied in Different Locations At the Seaside? Yacht Marina In the mountains? Cable Car In the Desert? Golf or Aqua Porto 18 Private and Confidential: For personal use only and not for distribution or copying
Slide 20: Porto South Beach
Our success continued… Porto South Beach Harsh update numbers Started construction in May 2010 Started construction in May 2010 Ain Sokhna, Egypt 90% of the residential units were sold in the first two weeks of June 2010 Key Facts about the project: Land Area 272,000 sqm Total Units 590 units Retail
Slide 21: Porto Residence
Porto Residence El Alamein, Egypt Key Facts about the project: Land Area 15,000 sqm Total Residential Units 416 BUA 87,000 sqm Total Units sold 149 units 20 Private and Confidential: For personal use only and not for distribution or copying
Slide 22: Porto Cairo
Porto Cairo Harsh update numbers New Cairo, Egypt Key Facts about the project: Porto Cairo Retail Porto Cairo Residential BUA 34,446 sqm Land Area 106,000 sqm Total Units 612 units BUA 35,670 sqm Units Sold 592 Units Residential 84units (villa) Units Sold 83 units 21 Private and Confidential: For pe
Slide 23: Porto Matrouh: Cleopatra's Favorite Beach
Porto Matrouh: Cleopatra‟s Favorite Beach Matrouh, Egypt Harsh update numbers Preliminary Guidance Land Area 340,000 sqm Cost of land EGP52 million BUA 119,135 sqm Total Units 3,000 units Residential BUA 105,000 sqm Units Sold 939 units Retail BUA 8,190 sqm Hotel 130 keys 22 Private and Confidential
Slide 24: Porto Sharm
Porto Sharm Preliminary Guidance Land Area 648,392 sqm Cost of land 14% of Revenues BUA 375,975 sqm Total Units 6,000 units Residential BUA 315,157 sqm Units sold 2,004 units Mall Leasable Area 7,000 sqm Commercial 25,443 sqm 23 Others 28,375 sqm Private and Confidential: For personal use only and n
Slide 25: Porto Pyramids
Porto Pyramids Giza, Egypt View of the Giza Pyramids Preliminary Guidance Land Area 101,960 sqm Cost of land 16% of Revenues BUA 114, 750 sqm Residential BUA 91,800 sqm Mall 22,950 sqm 24 Private and Confidential: For personal use only and not for distribution or copying
Slide 26: Porto New Cairo
Porto New Cairo Preliminary Guidance Land Area 54,549 sqm Cost of land 25% of Revenues BUA 195,891 sqm Residential BUA 66,870 sqm Mall 52,320 sqm Office 13,500 sqm Other 63,201 25 Private and Confidential: For personal use only and not for distribution or copying
Slide 27: Porto October
Porto October Preliminary Guidance Land Area 1.38 million sqm Offices 6,090 sqm BUA 570,533 sqm Clinics 6,090 sqm Residential BUA 313,739 sqm Medical 16,863 sqm Mall 71,022 sqm School 59,317 sqm Commercial 25,277 sqm Cost of land 25% of Revenue Anchors 22,140 Hotel Keys 50 26 Private and Confidentia
Slide 28: Porto Islands Sokhna
Porto Islands Sokhna Preliminary Guidance Land Area 220,000 sqm Cost of land 16% of Revenues BUA 132,000 sqm Residential BUA 117,000 sqm Mall Leasable Area 5,000 sqm Hotel 10,000 sqm 27 Private and Confidential: For personal use only and not for distribution or copying
Slide 29: Restaurants
Restaurants Private and Confidential: For personal use only and not for distribution or copying
Slide 30: Amer Restaurants Brands
Amer Restaurants Brands As of September 2012, Amer Group has 50 casual dining outlets and six brands. 29 Private and Confidential: For personal use only and not for distribution or copying
Slide 31: Overview of Amer Restaurants
Overview of Amer Restaurants Ave Revenue Number of Number of Spend / Name Launch Outlets Seats EGP mn Brand description Ownership Person (EGP) H1 2012 Casual dining Tex-Mex 1994 20 4,559 96 52.8 franchise agreement restaurants Film-themed 100% owned, Amer Group 1996 10 2,406 120 22.7 Mediter
Slide 32: Meeting Point Malls
Meeting Point Malls Private and Confidential: For personal use only and not for distribution or copying
Slide 33: The 'Meeting Point' Concept
The „Meeting Point‟ Concept An entertainment mall development and management business. Each Meeting Point mall mainly consists of food outlets, cinema screens and other entertainment facilities. The remainder consists of retail outlets Meeting Points are positioned more as Entertainment entertai
Slide 34: Location of existing and proposed meeting point malls
Location of existing and proposed meeting point malls 1 2 4 5 Tartous GLA 8,897 sqm GLA 13,068 15 tenants sqm Syria 6 65 tenants 3 GLA 13,873 sqm 30 tenants 10 7 Alamein 15 Matrouh Sharm El Shaikh Cairo / Greater Cairo 8 Ain Sokhna GLA 5,290 sqm 19 tenants 11 9 Egypt 12 16 13 Existing Mall GLA 10,95
Slide 35: Hotels
Hotels Private and Confidential: For personal use only and not for distribution or copying
Slide 36: Our Hotels act as a marketing tool for us
Our Hotels, which targets Egyptian families, act as a marketing tool for us Existing Hotels • Currently four Porto developments have operating hotels Porto Marina 379 keys • Our hotel acts as a marketing tool, and Point of Attraction Porto Golf Marina 148 keys for our destinations Porto Sokhna 139 k
Slide 37: Other Investments
Other Investments Private and Confidential: For personal use only and not for distribution or copying
Slide 38: Overview of Arabtec Egypt
Overview of Arabtec Egypt Amer Group signed an agreement with Arabtec Construction (“Arabtec”), one of the leading construction companies in the UAE, to establish a 44% Amer owned JV construction firm The venture will serve Amer Group projects (not on an exclusive basis) in addition to providing
Slide 39: The "Porto World" Brand
The “Porto World” Brand Private and Confidential: For personal use only and not for distribution or copying
Slide 40: Financial benefit of "Porto World" popularity
Financial benefit of “Porto World” popularity • Increase in the projects’ off-plans sales • Higher average prices • Reduce pressure on the company’s cash resources • Reduce the company’s debts to equity ratio • Easy access to lands with favourable terms and conditions with third parties • Customer t
Slide 41: Investment Highlights & Strategy
Investment Highlights & Strategy Private and Confidential: For personal use only and not for distribution or copying
Slide 42: Amer Group: Business Strengths
Amer Group: Business Strengths The Group’s business model is built on solid operational and financial foundations. 1 Strong Demand in the Group's Target Markets 2 Strong Brand Image with Clear Consumer Perception 3 Track Record of Effective Execution of Developments 4 Highly Efficient Integrated Bus
Slide 43: Strong Demand in the Group's Target Markets
1. Strong Demand in the Group's Target Markets Egypt’s population grows at c.2% annually… …And population is relatively young 90 above 60 years less than 6 years old 6% old 14% 80 45 - 60 years old 70 14% 60 6 - 15 years old 50 18% 40 30 20 15 - 45 years old 02 03 04 (1) 05 06 08 09 10 11 12 48% Sou
Slide 44: Strong Brand Image with Clear Consumer Perception
2. Strong Brand Image with Clear Consumer Perception Strong brand awareness supports PORTO HOTELS MEETING POINT AMER RESTAURANTS SPA – Early Off-Plan Sales – Premium Pricing SPORTS FACILITIES KIDS EVENTS PROMENADE – Lower Marketing Expenses RESULTS CABLE CAR PORTO HOME HOTELS M’GMT VACATION CLUB –
Slide 45: Track Record of Effective Execution
3. Track Record of Effective Execution At start of construction Post construction Sales launched in Sales launched in August June 2005 2006 First phase was Mall and restaurants delivered in 2005 were delivered in 2007 83% of total units sold 81% of constructed units have been sold Sale
Slide 46: We have sold 14,900 units since 2005
3. Track Record of Effective Execution We have sold 14,900 units since 2005 Cumulative sales (units) 16,000 14,000 12,000 New Projects (20%) 10,000 Porto Cairo Mall (4%) Porto South Beach (4%) 8,000 Porto Cairo (1%) 6,000 Golf Sokhna (31%) 4,000 Porto Sokhna (12%) 2,000 Golf Marina (42%) Porto Marin
Slide 47: Highly Efficient Integrated Business Model
4. Highly Efficient Integrated Business Model Controlling the Tools to Create Landmark Lifestyle Destinations Maximize Operational Efficiency Provide Operational Flexibility Reduce Operational and Development Costs and Timeline Capacity to Manage Growth Ensure Different Income Streams that Support t
Slide 48: Capital Efficient Business Model
5. Capital Efficient Business Model Our land acquisition process mainly consists of Acquiring govt. owned land by competitive bidding Historical Debt Levels Total Debt (EGP mn) Debt to Equity (%) – Payment on deferred instalments 400 80% 74% 338 JV model with third parties, which helps in: 350 3
Slide 49: Strong Management with Significant Operational Expertise
6. Strong Management with Significant Operational Expertise Omar Amer Mohamed El Sayed Mansour Amer Marketing Strategy Execution Experience Vision / Leadership – Vice Chairman & Chief – Vice Chairman – Founder, Chairman and CEO Business Development – Previously responsible for – Started in real esta
Slide 50: Group Strategy
Group Strategy Amer Group aims to be a leading family-oriented resort / residential destination, entertainment mall and restaurant developer in MENA. Continue to Seeking Expansion Execute Roll-Out Opportunities in Egypt Within MENA Maintaining the Develop and Application of Expand Brands’ Shariah Va
Slide 51: Corporate Social Responsibility
Corporate Social Responsibility As the existing shareholders have donated 33% of current shares to a charitable trust, the trust will continue supporting the community in the name of Amer Group which reflects its CSR commitment with no more burden on other shareholders The train is bought through th
Slide 52: Financial Highlights
Financial Highlights Private and Confidential: For personal use only and not for distribution or copying
Slide 53: Selected financial indicators
Selected financial indicators We Managed to Reduce our Outstanding Bank and Land Liabilities 400 338 Since IPO… 316 289 300 Land liabilities declined by EGP113 million 200 170 100 63 57 Bank borrowings declined by EGP49 million 0 At IPO Dec -11 June-12 Land Liabilities (EGP mn) Bank Borrowings (EGP
Slide 54: Amer Group: Significant Intrinsic Value
Amer Group: Significant Intrinsic Value Hotels and malls are built by the Company and are reflected on its balance sheet at cost - Market value of these assets is EGP1.1 billion according to third party independent valuers If the Company had sold these assets, built over the past 5 years, the ea
Slide 55: Amer Group: Performance Post IPO
Amer Group: Performance Post IPO • Achieved new sales worth EGP3.4 billion since IPO, Launched Porto Matrouh and Porto Sharm • Backlog stands at EGP4.5 billion, to be recognized over four years • Reduced Land Liabilities by EGP113 million to EGP57 million • Increase in retail leasable space by 13,36
Slide 56: Achieved new sales of EGP3.4 billion post IPO
Achieved new sales of EGP3.4 billion post IPO Amer Group New Sales 16,000 14,900 14,000 Units sold since IPO: 5,333 units 12,000 9,573 10,000 New Sales since IPO:EGP3.4 billion 8,000 6,000 4,000 2 new destination launched in 2012 2,000 - At IPO At Present • Porto Matrouh • Porto Sharm 55 Private and
Slide 57: Amer Group: Key Financial Information
Amer Group: Key Financial Information Backlog EGP4.5 billion Market Cap EGP2.4 billion (3040 shares x 0.80 LE) Contracting (Arabtec) Contracts worth EGP1.0 billion EGP mn 2010 2011 H1 2012 Inventory Units 1,649 units worth EGP1.9 billion (at Current Selling Price) Real Estate 1,273 784 378 New Sales
Slide 58: New Projects Guidance (2012 – 2017)
New Projects Guidance (2012 – 2017) Project Location Land Area BUA Land Owner Share Estimated Revenues (m2) (m2) (mil. EGP) Porto October 6th of October 1,381,925 570,503 25% 5,410 Porto New Cairo New Cairo 54,549 195,891 25% 1,721 Porto Sharm Sharm El Sheikh 648,392 375,976 14% 2,860 Porto Pyramids
Slide 59: Amer Group Share Price Performance
Amer Group Share Price Performance (share price in EGP) 2.5 Rated as highest trading stock in Egypt in 2011 2.0 January 2011 Egypt Revolution 1.5 1.0 0.5 0.0 58 Private and Confidential: For personal use only and not for distribution or copying
Slide 60: Thank You
Amer Group: Fulfilling Visions Thank You 59 Private and Confidential: For personal use only and not for distribution or copying
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