Slide 1: Investor Presentation September 2022
INVESTOR PRESENTATION SEPTEMBER 2022
Slide 2: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS REITERATING PHD’S EQUITY STORY 1 Award winning brand & developments, allowing for price premiums & granting access to land 2 Spearheaded by a seasoned & prudent Management Team 3 Current Land Bank provides internal growth for c.10-12 years 4 Strategic Shareholders support o
Slide 3: Strong Track Record of Delivery
STRONG TRACK RECORD OF DELIVERY ONE OF THE LARGEST PROXIES FOR EGYPTIAN REAL ESTATE Developed Land Bank1 Cum. Net Sales2 FY2022 New Sales Target 10.4 mn sqm EGP80 bn EGP20 bn Completed Residential Completed Commercial Units Delivered4 Communities Projects3 18 out of 34 9 out of 30 12.7k from 22k sol
Slide 4: The Most Balanced Land Bank Spreading 29 Million sqm
THE MOST BALANCED LAND BANK1 SPREADING 29 MILLION SQM PRIME LOCATIONS ACROSS WEST CAIRO, EAST CAIRO, ALEXANDRIA & NORTH COAST 2.5 11.6 4.5 Developed 10.4 4.5 Under Development To be 3 West Cairo Launched Residential East Cairo Long Term 19.9 Commercial 3 Other Regions 26.4 1.3 5.6 (1) Total land ban
Slide 5: The Egyptian Property Market Remains Resilient Despite Various Challenges
THE EGYPTIAN PROPERTY MARKET REMAIN RESILIENT DESPITE VARIOUS CHALLENGES 32% GROWTH YOY IN NEW SALES1 TO EGP91 BN DURING FY2021 Annual Sales of Listed Egyptian Developers EGP billion 91 93 70 69 Sales increased by a CAGR of 29% in the last decade 59 48 35 23 25 16 11 7 2011 2012 2013 2014 2015 2016
Slide 6: PHD Is One of the Largest Contributors to Egypt's Property Market Growth
PHD IS ONE OF THE LARGEST CONTRIBUTORS TO EGYPT’S PROPERTY MARKET GROWTH STELLAR SALES PERFORMANCE ACROSS OPERATING REGIONS Achieved Strong Growth in FY20211 By selling more Units At higher prices2 EGP billion EGP thousand/sqm PHD’s on track to exceed FY2022 Growth was supported by new New Sales Tar
Slide 7: With an Accelerated Development Program
WITH AN ACCELERATED DEVELOPMENT PROGRAM AHEAD OF CONTRACTUAL DELIVERY DATES IN ALL PROJECTS Aiming to conclude smaller sized & older Leading to an increase in Delivered Units While managing construction cost projects to focus on smaller number of EGP thousand/sqm larger projects EGP billion Planning
Slide 8: Translating into Profitable Growth
TRANSLATING INTO PROFITABLE GROWTH EARNINGS IMPROVEMENTS ACROSS MOST INDICATORS Income Statement growth resulted from YoY increase in sales of primary & secondary homes as well as commercial units, the YoY increase in delivered units, complemented by contribution from Ready to Move units Revenue Gro
Slide 9: …& A Healthy Financial Position
…. & A HEALTHY FINANCIAL POSITION IMPROVING CASH POSITION Cash Balance & Collections from Customers exhibited double digit growth YoY, with Cash Inflows from Operations turning positive Cash & Cash Equivalents Receivables1 Collections from Customers EGP million EGP million EGP million 30,000 0.5 25,
Slide 10: …& A Healthy Financial Position (Continued)
…. & A HEALTHY FINANCIAL POSITION (CONTINUED) STEADY FOCUS ON CAPITAL STRUCTURE OPTIMIZATION Healthy Liquidity position with Receivables covering Net Debt 23x & Net Debt/EBITDA1 of 0.5x Bank Debt Land Liabilities Net Debt EGP million EGP million EGP million 5,000 4,737 0.4 4,500 +23% 3,860 0.35 4,00
Slide 11: 1H2022 Actual Results versus FY2022 Budget
1H2022 ACTUAL RESULTS VERSUS FY2022 BUDGET ON TRACK TO ACHIEVE FY2022 TARGETS New Sales Actual Handovers Revenue EGP10.7 bn 643 Units EGP6.9 bn +38% YoY +24% YoY +73% YoY FY2022 Budget EGP20 bn FY2022 Budget 2,072 Units FY2022 Budget EGP9 bn Gross Profit EBITDA Margin EGP2.3 bn 1H2022 20% +65% YoY H
Slide 12: Long Term Plans: Through Main Pillars
LONG TERM PLANS THROUGH 4 MAIN PILLARS Portfolio Capital Operational Commercial Optimization Allocation Execution Expansions ▪ Achieve the highest & best use of existing land bank & prioritize development program to maximize IRR ▪ Steady focus on Operational Cash Flow enhancements ▪ Divest untapped
Slide 13: Long Term Plans: Optimize Projects Portfolio & Securing Funding
LONG TERM PLANS OPTIMIZE PROJECTS PORTFOLIO & SECURING FUNDING Portfolio Capital Operational Commercial Optimization Allocation Execution Expansions ▪ Avail projects’ funding in the form of “on & off” Balance Sheet financing including securitization of Receivables, syndications with banks & long ter
Slide 14: Long Term Plans: Finish Smaller Projects to Focus on Future Growth
LONG TERM PLANS FINISH RELATIVELY SMALLER PROJECTS TO FOCUS ON FUTURE GROWTH PROJECTS Portfolio Capital Operational Commercial Optimization Allocation Execution Expansions ▪ Conclude all projects in the pipeline to focus on a smaller number of larger projects, hence achieving better focus & higher m
Slide 15: Long Term Plans: Growth in Commercial Segment
LONG TERM PLANS COMPLEMENTED BY GROWTH IN COMMERCIAL SEGMENT Portfolio Capital Operational Commercial Optimization Allocation Execution Expansions ▪ Continue to release inventory in projects where sales has started already ▪ Grow commercial segment’s P&L contribution by focusing on the development o
Slide 16: PHD's Share Price Offers Attractive Shareholder Returns
PHD’S SHARE PRICE OFFERS ATTRACTIVE SHAREHOLDER RETURNS SLOPPY MARKET PERFORMANCE DUE TO VARIOUS MACRO & GEO -POLITICAL REASONS Real Estate Developers’ Rebased Stock Performance (January 1 - August 31, 2022) MNHD PHDC EMFD ORHD SODIC TMG +29% MNHD 3.0 -10% EMFD 2.5 -15% TMGH 2.0 -15% OCDI 1.5 -18% O
Slide 17: All Stocks Are Now Trading at New Low Levels
ALL STOCK ARE NOW TRADING AT NEW LOW LEVELS1 ATTRACTIVE & STEEP VALUATIONS ACROSS THE PEER GROUP Market Capitalization relative to Land Bank Price to Earnings (P/E) EGP/sqm Average valuation per sqm is EGP394 Average P/E = 6.6 874 13.4 729 9.1 7.5 215 271 4.2 3.3 114 160 2.0 ORHD PHDC TMGH OCDI MNHD
Slide 18: Supplement Information
SUPPLEMENT INFORMATION
Slide 19: Residential Portfolio
RESIDENTIAL1 PORTFOLIO 23 YEARS OF A WELL-ESTABLISHED BRAND EQUITY EGP bn Projects West East Other Badya (unless otherwise stated) Portfolio Cairo Cairo Regions Number of Projects 32 15 10 6 1 Delivered Units 12,744 5,468 4,351 2,900 25 Badya, West Cairo Inventory Value2 135 9 14.4 18.2 93 Receivabl
Slide 20: Badya Is an Integrated City with Planned BUA of 8.2 Million sqm
BADYA IS AN INTEGRATED CITY WITH PLANNED BUA OF 8.2 MILLION SQM EGYPT’S UPCOMING SUSTAINABLE & INNOVATIVE CITY IN WEST CAIRO Land Area Construction Required1 Sales Evolution since launch EGP million/Units sold 12.6 mn sqm EGP55 bn New Sales Grew 144% YoY to 4,996 EGP3.1 bn in 1H2022 Inventory Value2
Slide 21: Badya Designs
BADYA DESIGNS A CITY OF NEW WORLDS 21
Slide 22: Deliveries of Residential Units Commenced 1 Year Ahead of Contract Date
DELIVERIES OF RESIDENTIAL UNITS COMMENCED 1 YEAR AHEAD OF CONTRACT DATE HOMEOWNERS STARTED TO MOVE IN PHASE 1A A pilot phase was delivered during 4Q2021, almost one year ahead of contractual delivery dates. The Masterplan Phase 1 A Phase 1 A - June 2021 Units in finishing phase Pilot Phase 22
Slide 23: Badya Today
BADYA TODAY PHD PLANS TO HANDOVER 500 UNITS OVER THE COMING 12 MONTHS 23
Slide 24: Badya: Accessibility & Public Roads Network
BADYA ACCESSIBILITY & PUBLIC ROADS NETWORK Metro Line 4 • Extension of planned line 45 km long • 30-45 minutes to Central Cairo The fastest & most convenient mass transit (maximum 1 hour travel time & 1 interchange) Monorail • A consortium led by Bombardier with Orascom Construction & Arab Contracto
Slide 25: Badya: Sustainability Strategy Aligned with UNDP SDGs
BADYA SUSTAINABILITY STRATEGY ALIGNED WITH UNDP SUSTAINABLE DEVELOPMENT GOALS 25
Slide 26: Palm Hills New Cairo
PALM HILLS NEW CAIRO HANDOVERS COMMENCED IN 1Q2021, A YEAR AHEAD OF CONTRACTUAL DELIVERY DATES Land Area1 Planned Built Up Area 2.1 mn sqm 1.0 mn sqm Inventory Value2 Cum. Net Sales3 EGP24 bn EGP11 bn Construction Required4 Revenue Backlog EGP17 bn EGP6 bn (1) Land secured from NUCA through revenue
Slide 27: The Crown
THE CROWN HANDOVERS STARTED EARLY 2021, 2 YEAR AHEAD OF CONTRACTUAL DELIVERY DATES Land Area1 Planned Built Up Area 0.8 mn sqm 0.5 mn sqm Inventory Value2 Cum. Net Sales3 EGP9 bn EGP5.1 bn Construction Required4 Revenue Backlog EGP2 bn EGP1.4 bn (1) Land purchased from the Egyptian Ministry of Housi
Slide 28: Hacienda West
HACIENDA WEST SUCCESSFULLY LAUNCHED LAST SUMMER Land Area1 Planned Built Up Area 0.6 mn sqm 0.15 mn sqm Inventory Value2 Cum. Net Sales EGP6 bn EGP3 bn Construction Required3 Revenue Backlog EGP2.2 bn EGP1.6 bn (1) Land secured via revenue sharing with a private landowner. (2) Available for sale inv
Slide 29: Commercial Portfolio
COMMERCIAL1 PORTFOLIO COMPLEMENTING PHD’S LIVING COMMUNITIES EGP bn Projects West East Other Badya5 (unless otherwise stated) Portfolio Cairo Cairo Regions Number of Projects 29 10 9 6 4 Delivered Units 171 110 61 - - Inventory Value2 10 - The Lane, West Cairo 6.3 2 1.7 Receivables3 2.4 1.5 0.1 0.66
Slide 30: Palmet, West Cairo
PALMET, WEST CAIRO A NEW METROPOLITAN DOWNTOWN OF THE WEST CAIRO HILL & NEIGHBORING COMMUNITIES Land Area 189k sqm Inventory Value1 EGP5.4 bn Planned Built Up Area 125k sqm Launch Date 2Q2022 Inspired by the brand DNA of Palm Hills and “metropolitan” spaces (1) Available for sale inventory excluding
Slide 31: Golf Central, West Cairo
GOLF CENTRAL, WEST CAIRO A NEW MIXED -USE DEVELOPMENT IN THE HEART OF PALM HILLS OCTOBER Land Area 32k sqm Inventory Value1 EGP2 bn Planned Built Up Area 52k sqm (1) Available for sale inventory excluding escalations. 31
Slide 32: Palm Hills New Cairo Commercial Proposition
PALM HILLS NEW CAIRO COMMERCIAL PROPOSITION INCLUDING SCHOOL, HOSPITAL, CLUB & RETAIL SPACE Land Area 420k sqm Inventory Value1 EGP9 bn Planned Built Up Area2 198k sqm Launch Date 2Q2022 (1) Available for sale inventory excluding escalations. (2) Subject to change with the final designs. BUA excludi
Slide 33: Badya's Core Commercial Proposition
BADYA’S CORE COMMERCIAL PROPOSITION SPREADING C.530K SQM OF LAND Badya Club is planned to fulfill the needs of more than 30k families on a footprint of 322k sqm. The Club will feature indoor & outdoor facilities. The District Center is a vital aspect of Badya’s Phase 1. It will encompass mixed use c
Slide 34: Badya University
BADYA UNIVERSITY AN INTERNATIONAL UNIVERSITY IN COOPERATION WITH MAASTRICHT SCHOOL OF MANAGEMENT In cooperation with Taaleem Management Services, Badya University will offer 2 Campuses on 163k sqm of land, an Egyptian Private University Campus hosting 4 Life Science faculties (Dentistry, Pharmacy, P
Slide 35: Sales - KPIs
SALES - KPIS NEW SALES GREW 33% YOY TO EGP10.7 BN DURING 1H2022 New Sales1 Average Selling Prices EGP mn EGP/sqm New Sales Number of Units Apartments Land Standalone Units BUA 31,146 17,289 25,000 14,905 27,562 22,400 12,779 19,000 20,425 10,687 16,000 22,000 4,175 8,337 10,387 14,391 20,200 7,728 6
Slide 36: Development - KPIs
DEVELOPMENT - KPIS CONSTRUCTION SPENDING GREW 25% YOY TO EGP1.7 BN. HANDOVERS INCREASED 24% YOY TO REACH 643 UNITS Construction Spending1 Handed Over Units1 EGP mn West Cairo East Cairo Other Regions 1,781 2,492 1,541 2,148 1,308 1,893 1,717 658 1,554 494 1,475 964 240 128 189 633 643 648 137 722 10
Slide 37: Profitability
PROFITABILITY SOLID PERFORMANCE OVER THE YEARS Revenue Gross Profit & Gross Profit margin EGP mn EGP mn 7,422 7,717 6,604 6,940 6,224 2,631 5,207 2,587 2,329 2,014 2,334 2,103 37% 39% 32% 34% 34% 34% 2017 2018 2019 2020 2021 1H2022 2017 2018 2019 2020 2021 1H2022 Net Profit after Tax & Minority Inte
Slide 38: Income Statement
INCOME STATEMENT 1H2022 CONSOLIDATED FINANCIAL STATEMENTS1 EGP Thousand June 30, 2022 June 30, 2021 Change Revenue 6,940,217 4,009,609 73% Cost of Revenue (4,606,043) (2,591,357) 78% Gross Profit 2,334,174 1,418,253 65% Gross Profit margin 34% 35% (1pp) General Administrative, Selling and Marketing
Slide 39: Balance Sheet
BALANCE SHEET 1H2022 CONSOLIDATED FINANCIAL STATEMENTS EGP Thousands June 30, 2022 December 31, 2021 EGP Thousands June 30, 2022 December 31, 2021 Long-Term Assets Creditors & Other Credit Balances 1,152,768 1,042,545 Investments in Associates 357,926 213,673 Due to Joint Arrangements Partners 343,0
Slide 40: Cash Flow Statement
CASH FLOW STATEMENT 1H2022 CONSOLIDATED FINANCIAL STATEMENTS EGP Thousand June 30, 2022 June 30, 2021 EGP Thousand June 30, 2022 June 30, 2021 Change in Infrastructure Commitments (58,063) - Net Profit for the Period (Before Income Tax & Non-Controlling Interest) 892,069 609,567 Leasing Contracts Li
Slide 41: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS IR Team Mamdouh Abdelwahab Investor Relations & Investments A. Vice President Radwa Abu El Naga Investor Relations Senior Manager Contact Details Investor.relations@phdint.com Direct: +202 35351200 Extension: 1230 / 1504 Fax: +202 3535 1208/9 Headquarters Smart Village, A