Egyptian For Tourism Resorts · EGX:EGTS
Egyptian For Tourism Resorts — Egyptian Resorts Company (ERC) — FY2014 Earnings Presentation
42 slides from Egyptian For Tourism Resorts's earnings presentation, 2015
Slide 1: Investor Presentation FY 2014
Investor Presentation FY 2014
Slide 2: 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 th
Slide 3: Agenda
AGENDA Investment Highlights ERC — Egypt's Leading Master Developer Corporate History and Recent Events Sah! Hasheesh - ERC’s Mega Resort Community Market Opportunity Summary oa KRW WN Appendices
Slide 4: Investment Highlights
4 Investor Presentation FY 2014
Slide 5: Agenda
AGENDA 1 Investment Highlights ERC — Egypt's Leading Master Developer Corporate History and Recent Events Sah! Hasheesh - ERC’s Mega Resort Community Market Opportunity Summary Oo oa ff W Appendices
Slide 6: The ERC Business Model
Manage the community and supply of utilities The ERC Business Model: Implement design 1 Acquire broad acre land holdings suitable for high quality development at nominal guidelines value – Sahl Hasheesh land bank acquired in 1995 for an average of USD 1.32/m2 Develop prime residential and 2 Create a
Slide 7: Three Revenue Streams
• By world-class master planners Land Identification/ • Design and construction guidelines and Three Revenue Streams Investment Acquisition conditions + ERC leverages strong brand partnerships, a comprehensive • Water Desalination Plants and Networks development model and management structures that
Slide 8: Agenda
AGENDA 1 Investment Highlights W) ERC — Egypt's Leading Master Developer Corporate History and Recent Events Sah! Hasheesh - ERC’s Mega Resort Community 5 Market Opportunity Summary 6 Appendices
Slide 9: Legal Structure
Legal Structure Egyptian Public Joint Stock Company KATO Investment Listing 11.96% Egyptian Exchange (EGX) Others First Arabian Company Authorized Capital (EGP) 2,000,000,000 40.48% 10.00% Paid-in-Capital (EGP) 1,050,000,000 Rowad Tourism Nominal Share Value (EGP) 9.05% 1.00 Fiscal Year December 31s
Slide 10: Corporate History and Recent Events
2014 - onwards • Deliver the Sawari Marina project 2014 • Complete construction of Tawaya project with Palm Hills Development within 12-18 months 2013 • Company ramps up marketing efforts, looking to capture larger market share as tourism recovers • ERC sells & delivers 100% of Jamaran & plans to in
Slide 11: Investment Highlights
Growing strategic real estate projects Old Town apartments / commercial center, Tawaya, and Comfortable Cash Sawari Marina are key projects that will drive ERC’s second Reserves – EGP 98.1 revenue stream, increase Sahl Hasheesh’s attractiveness million and encourage widespread development. ERC can s
Slide 12: Orascom Hotels and Development MoU
• In May 2014, ERC announced the signing of a Memorandum of Understanding (MoU) with Orascom Hotels and Development ( ODH ) to acquire from Orascom majority stakes in 3‐4 hotels and a significant bank of undeveloped land strategically located adjacent to Sahl Hasheesh. • On 24 August 2014 this MoU e
Slide 13: Share Price Performance vs Peers
600 500 EGX30 EGTS MNHD TMGH ODHN PHDC OCDI 400 300 200 100 0 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 250 EGX30 EGTS MNHD TMGH ODHN PHDC OCDI 200 150 100 50 0 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14
Slide 14: Agenda
AGENDA 1 Investment Highlights W) ERC — Egypt's Leading Master Developer 3 Corporate History and Recent Events Sahl Hasheesh - ERC’s Mega Resort Community 5 Market Opportunity Summary 6 Appendices
Slide 15: Investor Presentation FY 2014
15 Investor Presentation FY 2014
Slide 16: Sahl Hasheesh Red Sea destination
Sahl Hasheesh is a unique, purpose-built Red Sea destination 18 kilometers south of Hurghada International Airport and approximately • 18 km south of Hurghada Int’l Airport 470 kilometers from Cairo. The year-round development – • 22 km south of Hurghada city center LOCATION • 470 km from Cairo appr
Slide 17: Phase III land allocation
Phase III shapes and brings online phased districts totaling 20 million square meters, and is the key to transforming the development from a pure resort to a thriving resort city. The WATG design introduces the heart of the city: hospitals, schools, office buildings and SMEs are among the developmen
Slide 18: Phases I and II of Sahl Hasheesh
Phases I and II of Sahl Hasheesh are currently home to more than 3,000 Phase 1 6 million m² hotel rooms and suites managed by brands including Premier Le Rêve, Premier Romance, Pyramisa, Old Palace in addition to 1,400 residential • Fully finished: 1,632 rooms (4 projects) units. Five of our hotels
Slide 19: Controlled Supply, Superior Infrastructure, One-Stop-Shop
Controlled Supply Large – yet strategically released – land phases deployed based on development and ROI protection. Land supply around Hurghada is eroding quickly, while future sites at Sahl Hasheesh are easily brought online on short timelines, allowing profit protection. STP Superior Infrastructu
Slide 20: Community Management in an Upscale Resort
Community Management in an Upscale Resort Architectural integrity and cohesion guaranteed by strict design guidelines coupled with innovative design concepts promise an ideal physical environment. Community management controls and regulations ensure an uncommonly high level of environmental amenity
Slide 21: Three Revenue Streams
Land Identification/ Three Revenue Streams Investment Acquisition ERC leverages strong brand partnerships, a comprehensive development model and management structures that are transferable across projects and sectors – our ambition is to build a prolific regional master developer generating long ter
Slide 22: Land Sales
Land Sales © SAHL HASHEESH RED SEA, EGYPT
Slide 23: Land sales process and release schedule
Review Offer Acceptance + CapEx Construction • Offer received from • Sales contract signed 1. Plans reviewed against • Infrastructure coordination developers/investors (includes exclusive design guidelines with developer utilities agreement) • Reservation payments 2. Construction permit • Infrastruc
Slide 24: Industry-Beating Model
Industry-Beating Model 2.1 million m² (excluding Phase III, Sawari Marina and SHC Plots) remain in the pipeline at Sahl Hasheesh. Average sales price grew at 89% annually before the global financial crisis and profit margins reached 84%. Weighted Average Sales Price/m² Achieved (USD) Weighted Averag
Slide 25: Revenue Stream: Real Estate Development
Revenue Stream 2 Real Estate Development: Strategic Projects and Sahl Hasheesh Company
Slide 26: Plots for Future Development and Under Development
1 Sole developer for Phases I and II downtown Strategic plots acquired at market prices for mixed-use For Future Development mixed use areas development Under Development Plot # Size (m²) Type of Development Plot # Size (m²) Type of Development 9A 47,577 Mixed Use Festival World 487,660 Mixed Use 5.
Slide 27: Project Highlights: Tawaya with Palm Hills
1 Project Highlights • A partnership between SHC & Palm Hills Developments to build an exclusive waterfront residential project in the Old Town of Sahl Hasheesh. • With this strategic alliance, ERC is targeting the build-up of a local community of residential owners. • Project Brief o 143 exclusive
Slide 28: Project Highlights: Sawari Marina
2 • 2.5 million m2 exclusive community centered around a world-class yacht club and Project Highlights marina • Total area of phase 1: 1.1 M sqm • Water surface area of 117,000 m2 to host 330+ boats and yachts from 10-to-60 meter+ • Number of apartments: 1,020 in length • Two 5-star and one 4-star h
Slide 29: Jamaran - Sold Out
2 • An exclusive enclave of sea-side villas along the coast of Sahl Hasheesh SOLD OUT • Connected to Old Town by a boardwalk, and within Jamaran itself, a range of amenities are planned • Four designs to select from each possessing a unique architecture style while embodying the elegance, simplicity
Slide 30: Revenue Stream: Community and Utilities Management
Revenue Stream 3 Community and Utilities & SAHL HASHEESH Management eel
Slide 31: Cost recovery and profit centers from recurring revenues
1 cost recovery and 3 profit centers from recurring revenues Supply of Community Water Electricity Communications Services • ERC invests in desalination • ERC invests in internal • ERC invests in equipment and • Ernst Body Corporate plant and equipment electricity grid black fiber network throughout
Slide 32: Agenda
AGENDA 1 Investment Highlights 2 ERC — Egypt's Leading Master Developer 3 Corporate History and Recent Events 4 Sah! Hasheesh - ERC’s Mega Resort Community Market Opportunity Summary 6 Appendices
Slide 33: Share data and full-year 2014 results
Shares Outstanding 1,050,000,000 200 Share Price* EGP 1.11 180 EGX30 EGTS 160 Market Cap. (EGP)* 1,155,000,000 140 Average Daily Volume** 14.3 million 120 Full-year 2014 100 80 Revenue EGP 51.3 million 60 EBT EGP (40.5) million 40 20 Net Income (Loss) EGP (41.4) million 0 *As of March 31st, 2015. **
Slide 34: Consolidated Liquid Assets and Liabilities
Consolidated Liquid Assets and Liabilities (EGP Millions) 509.4 534.2 443.5 443.5 331.9 384.2 226.9 260.6 192.1 208.1 192.1 216.4 336.2 236.3 329.7 462.3 276.9 371.2 309.2 309.2 238.6 273.8 200.0 260.0 260.0 271.6 248.1 233.6 248.1 200.0 271.1 162.0 252.4 136.5 109.0 98.1 2009 2010 2011 2012 2013 20
Slide 35: Agenda
AGENDA 1 Investment Highlights 2 ERC — Egypt's Leading Master Developer 3 Corporate History and Recent Events 4 Sah! Hasheesh - ERC’s Mega Resort Community 5 Market Opportunity Summary Appendices
Slide 36: Tourism in Egypt and on the Red Sea
Tourist Arrivals to Egypt | Millions Breakdown of Arrivals by Region of Origin | Year 2014 Egyptian Revolution Germany Lifts Americans, 2.5% others, 4.4% Sharm El Sheikh Travel Warning attacks 14.7 2nd Egyptian Arabs, 16.4% EGP 12.8 Revolution 14.1 Devaluation 12.3 11.5 13.1 9/11 11.1 9.8 9.9 8.6 9.
Slide 37: Vision, mission and strategy
To become a regional Master Developer To make our shareholders proud of the To successfully implement the identified of International-standard mega company’s standards, reputation, initiatives to ensure the success of our communities by designing and operational performance and financial main produc
Slide 38: Management team
Mohamed Kamel, Chief Executive Officer Mr. Kamel is a former Board Member of ERC and Vice President of Corporate Development. Prior to ERC, he served in various roles with KATO Investment including Corporate Vice President for Strategy and Governance and Business Development Manager. He has an MBA f
Slide 39: Management team (continued)
Ahmed Fahmy, Head of Information and Communication Technology Mr. Fahmy has more than 8 years of experience in the Information and Communication Technology “ICT” field. He is responsible for preparing ICT related strategic and operational plans, including designing & managing the ICT infrastructure,
Slide 40: Financial summary 2009-2014
2009 2010 2011 2012 2013 2014 Revenue 25.8 14.9 28.2 40.5 28.9 51.3 Gross Profit 12.1 (5.8) (2) (11.3) (23.1) (42.4) EBT 3.9 (7.8) (3.2) (106.9) (43.1) (40.5) Net Income 4.7 (9.4) (7.4) (110.0) (47.7) (41.4) 2009 2010 2011 2012 2013 2014 Cash & Treasury Bills 309.2 273.8 200.0 162.0 109 98.1 Receiva
Slide 41: Project images
The downtown commercial The Marina of Sahl Hasheesh, In-house development of sea- An exclusive waterfront area and public beach of Sahl under development in front residential villas with residential project in the Old Hasheesh. Developed by Sahl partnership with Orascom exquisite open water views an
Slide 42: www.erc-egypt.com
www.erc-egypt.com www.sahlhasheesh.com
Egyptian Resorts Company (ERC) — FY2014 Earnings Presentation on 6ix