Egyptian For Tourism Resorts · EGX:EGTS
Egyptian For Tourism Resorts — Investor Presentation (March 2014)
45 slides from Egyptian For Tourism Resorts's investor presentation, March 2014
Slide 1: Investor Presentation Q4 2013
Investor Presentation Q4 2013
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 Ooo FW WN Appendices
Slide 4: Investor Presentation 3Q 2013
4 Investor Presentation 3Q 2013
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 ao #& WwW 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 2 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 and Listing
Legal Structure Egyptian Public Joint Stock Company KATO Investment Listing 11.96% Free Float Egyptian Exchange (EGX) 32.91% First Arabian Company Authorized Capital (EGP) 2,000,000,000 10.00% Paid-in-Capital (EGP) 1,050,000,000 Rowad Tourism Nominal Share Value (EGP) 9.00% 1.00 Other long-term inve
Slide 10: Corporate History and Milestones
2013 onwards 2013 • Sign on the first hospital / wellness facility • Deliver the Sawari marina project and maintain infrastructure development pace ahead 2011 of resort city demand Design Construction 2010 2010 - 2012 Marketing 2009 • New management augments existing internal structure taking compan
Slide 11: Emerging from the Crisis: Another Opportunity
Emerging from the Crisis: Another Opportunity Dislocations post the global financial crisis and the Jan 25 uprising have left Sahl Hasheesh with the opportunity to emerge as the destination of choice for investors Growing strategic real estate projects: Sawari marina, Old Town commercial center and
Slide 12: Share Price Performance
ERC EGX TMGH MNHD ODHN OCDI PHDC 200 180 160 140 120 100 80 60 40 20 0 20-Feb 20-Mar 20-Apr 20-May 20-Jun 20-Jul 20-Aug 20-Sep 20-Oct 20-Nov 20-Dec 20-Jan 20-Feb ERC EGX TMGH MNHD ODHN OCDI PHDC 270 240 210 180 150 120 90 60 30 0 1-Sep 16-Sep 1-Oct 16-Oct 31-Oct 15-Nov 30-Nov 15-Dec 30-Dec 14-Jan 29
Slide 13: Agenda
AGENDA 1 Investment Highlights 2 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 14: Investor Presentation 3Q 2013
14 Investor Presentation 3Q 2013
Slide 15: Sahl Hasheesh: Purpose-Built 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 16: Phase III and Land Allocation
Phase III shapes and brings online phased districts totaling 28 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 17: Phases I and II Development
Phases I and II of Sahl Hasheesh are currently home to 2,318 hotel rooms Phase 1 6 million m² and suites managed by brands including Premier Le Rêve, Premier Romance, Pyramisa, Old Palace in addition to 1,363 residential units. • Fully finished: 1,647 rooms (4 projects) Hotel Rooms • Due 2014/15: 3,
Slide 18: 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 19: 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 20: 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 21: Land Sales
Land Sales © SAHL HASHEESH RED SEA, EGYPT
Slide 22: 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 23: Industry-Beating Model
Industry-Beating Model 3.1 million m² (excluding Phase III and Sawari Marina) 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 Average Cost/m² (
Slide 24: Revenue Stream: Real Estate Development
Revenue Stream 2 Real Estate Development: Strategic Projects and Sahl Hasheesh Company
Slide 25: Build-to-Lease and Build-to-Sell Plots
The Old Town and public beach Sole developer for Phases I and II downtown Acquires plots at market prices for mixed-use commercial retail and entertainment areas development Build-to-Lease Build-to-Sell Plot # Size (m²) Type of Development #Plot Size (m²) Type of Development 9A 57,528 Phase 1 – Reta
Slide 26: Build-to-Lease and Build-to-Sell Economics
• Leasing Terms: Flexible performance-based leases Footprint designated for commercial and 115,188 m² Build-to-Lease entertainment space • Lease Rates: Subject to yearly review/escalation With an expected payback Net Area Available for 217,275 m² USD/m² period of just over 3 years, Lease commercial
Slide 27: Sawari Marina
• 2.5 million m2 exclusive community centered around a world-class yacht club and marina. • Water surface area of 117,000 m2 to host 330+ boats and yachts from 10-to-60 meter+ in length. • Two 5-star and one 4-star hotels in Phase 1 around the marina basin. • 1,000+ villas and apartments in Phase 1—
Slide 28: Sawari Project Highlights and Sales
ERC’s pre-launch sales event in late 2010 a great success: Sales of luxury villas and condominiums significantly outpaced ERC’s best-case-scenario projections, underscoring the strength of demand for ERC’s strategic developments at Sahl Hasheesh. Project highlights: • Total area of phase 1: 1.1 M sq
Slide 29: Investor Presentation 3Q 2013
29 Investor Presentation 3Q 2013
Slide 30: Jamaran Villas
• All Jamaran villas afford open views of the Red Sea’s shimmering waters. • Spans a total area of 320,000 m2. • 47 two-storey villas: four designs with total floor areas from 318 to 330 m2. • As with all Sahl Hasheesh properties, the Jamaran villas will be built according to the highest standards o
Slide 31: Jamaran Project Highlights
Jamaran will be connected to Old Town by a boardwalk, and within Jamaran itself, a range of amenities are planned. These include a network of parks spread out amongst the villas, a private club house featuring a spa, dining area and gym, and mini golf courses. Project highlights: • Number of villas:
Slide 32: Jamaran Villa Designs
The Arabesque design The Mediterranean design View from a completed villa in Jamaran 32 Investor Presentation 3Q 2013
Slide 33: Revenue Stream: Community and Utilities Management
Revenue Stream 3 Community and Utilities & SAHL HASHEESH Management eel
Slide 34: Utilities and Community Services 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 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 Market Opportunity Summary 6 Appendices
Slide 36: Share Data and FY2013 Snapshot
Shares Outstanding 1,050,000,000 200 Share Price* EGP 1.98 175 Market Cap. (EGP)* 2,079,000,000 150 Average Daily Volume** 2,623,481 125 100 FY 2013 75 Revenue EGP 28.9 million 50 EBT EGP (43.1) million 25 0 Net Income (47.7) 1-Sep-13 30-Sep-13 29-Oct-13 27-Nov-13 26-Dec-13 24-Jan-14 22-Feb-14 *Base
Slide 37: Consolidated Liquid Assets and Liabilities
Consolidated Liquid Assets and Liabilities (EGP Millions) 509.4 534.2 443.5 331.9 384.2 236.3 216.4 226.9 197.1 192.1 208.1 329.7 462.3 371.2 309.2 273.8 260.0 233.6 248.1 238.6 200.0 271.1 252.4 136.5 109 2008 2009 2010 2011 2012 2013 Cash & TB Receivables Current L. Long Term L. 37 Investor Presen
Slide 38: 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 39: Tourism in Egypt and on the Red Sea
Tourist Arrivals to Egypt | Millions Breakdown of Arrivals by Region of Origin | 2013 Egyptian Others Sharm El Sheikh Revolution 4.9% attacks Americans 2.5% EGP Devaluation 14.7 2nd Egyptian 12.8 Revolution 14.1 11.5 13.1 9/11 12.3 12 Arabs 11.1 19.7% 9.8 8.6 9.1 9.5 8.1 6 Dahab Ex-President 5.2 Tab
Slide 40: Vision and Mission
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 41: 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 42: Management Team (continued)
Hazem Kassem, Head of Approvals Prior to joining ERC in 2008, Mr. Kassem launched an architecture and interior design firm in Cairo that has, over a seven year span, successfully delivered more than 45 commercial and residential projects in Egypt and London. Mr. Kassem holds a Bachelors degree in Ar
Slide 43: FY 2013 Financial Summary
2008 2009 2010 2011 2012 FY 2013 Revenue 347.8 25.8 14.9 28.2 40.5 28.9 Gross Profit 324.0 12.1 (5.8) (2) (11.3) (23.1) EBT 345.9 3.9 (7.8) (3.2) (106.9) (43.1) Net Income 265.8 4.7 (9.4) (7.4) (110.0) (47.7) 2008 2009 2010 2011 2012 FY 2013 Cash & Treasury Bills 371.2 309.2 273.8 200.0 162.0 109 Re
Slide 44: Sahl Hasheesh Images
The downtown commercial The Marina of Sahl Hasheesh, In-house development of sea- area and public beach of Sahl under development in front residential villas with Hasheesh. Developed by Sahl partnership with Orascom exquisite open water views and Hasheesh Co., the subsidiary Development and large ga
Slide 45: www.erc-egypt.com
www.erc-egypt.com www.sahlhasheesh.com
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