Egyptian For Tourism Resorts · EGX:EGTS
Egyptian For Tourism Resorts — Egyptian Resorts Company — Q3 2017 Earnings Presentation
40 slides from Egyptian For Tourism Resorts's earnings presentation, 2017
Slide 1: Investor Presentation 3Q2017
INVESTOR PRESENTATION 3Q2017
Slide 2: Executive Summary
a Executive Summary ~ A OO a
Slide 3: A Fully Integrated Real Estate Developer
A Fully Integrated Real Estate Developer Egyptian Resorts Company is a fully-integrated real estate developer, covering the entire value chain including master development, real estate development, infrastructure development, facility and community management Off-plan residential offerings and Maste
Slide 4: Key Performance Indicators
Key Performance Indicators EGP 182.0 mn EGP 28.1 mn EGP 55.6 mn EGP 164 mn Real Estate (Tawaya) Contracted Total 9M17 Revenues 9M17 Operating profit, 9M17 Net Profit, Sales 15% margin 31% margin 77 12 20 3.4 mn sqm Contracted Units (Tawaya) since Units under Construction Units Delivered (Tawaya) inc
Slide 5: Key Operational Developments
Key Operational Developments Land Plot Sales Tawaya Retail Activities Events ERC realized revenues of EGP Tawaya’s contracted sales Recurring revenues from retail On April 2017, byGanz 125.3 million from main activities reached EGP164 million. activities reached EGP 4.8 million, Extraordinaire hoste
Slide 6: KPIs – Forward Looking
KPIs – Forward Looking ERC’s will continue developing its four business lines and building the necessary capacity to delivering shareholder value EGP 2 Bn Expected Receivables as of EGP 400 mn Expected contracted sales as of year-end 2017 year-end 2017 20 95 Tawaya Units to be delivered in 2017 Tawa
Slide 7: Overview of ERC
a Overview of ERC x A — a
Slide 8: Real Estate Development
Real Estate Development ERC’s strategic real estate projects span the residential, commercial and touristic offerings with over 700,000 sqm in property under development Off-plan residential offerings Recurring revenue projects Mixed-use areas • Self-financed high and middle income • ERC develops an
Slide 9: Our Projects Portfolio
Our Projects Portfolio Jamaran Tawaya Old Town Retail, Office, Type Residential Residential, Type Type Residential Hospitality & Services Total Land Area (sqm) 30,000 Total Land Area (sqm) 13,290 Total Land Area (sqm) 14,689 Total Sellable BUA (sqm) 18,400 Launched 2014 Launched 2015 Total BUA (sqm)
Slide 10: Projects Portfolio: Tawaya
Projects Portfolio: Tawaya Exclusive waterfront residential project in the Old Town of Sahl Hasheesh by ERC & Palm Hills Developments Sellable BUA 18,400 m2 # of apartments 152 Unit sizes 60-294 m2 Sales window Opened April 2015 Expected delivery 2018-19 Expected Project Proceeds c.EGP 310 million V
Slide 11: Projects Portfolio: Jamaran
Projects Portfolio: Jamaran An exclusive enclave of sea-side villas along the coast of Sahl Hasheesh • An exclusive enclave of sea-side villas along the coast of Sahl Hasheesh • Four designs to choose from, with each possessing a unique architecture style while embodying the elegance, simplicity and
Slide 12: Projects Portfolio: Old Town
Projects Portfolio: Old Town Located at the heart of Sahl Hasheesh and overlooking the seaside promenade, Old Town is the development’s bustling downtown area • Premiere shopping and leisure destination with retail stores, restaurants, cafes, spas and various water sport activities Component Quantit
Slide 13: Projects Portfolio: Old Town
Projects Portfolio: Old Town The retail area strategy and zoning has been conducted by Colliers Investor Presentation 3Q2017 13
Slide 14: Real Estate Development Forward-Looking Strategy
Real Estate Development Forward-Looking Strategy ERC’s forward-looking strategy for its real estate development segment will see it revitalize exiting projects to extract higher value as well as roll-out new off-plan residential and recurring income developments Upcoming Projects Entrepreneurial & L
Slide 15: Master Development
Master Development ERC master develops mega projects and world-class communities, offering land parcels for hotels, residential apartments, villas, golf courses and other leisure real estate properties Land Identification/ Master Planning Land Sales Acquisition • Surveying the market for premium • W
Slide 16: Master Development Forward-Looking Strategy
Master Development Forward-Looking Strategy Introduce amenities for non-premium parcels Improve commercial offerings with structured products / pre-designated land plot (schools, hospitals) ERC is updating its master plan to Offer pre-packaged reflect the changing market development solutions to dyn
Slide 17: Infrastructure Development
Infrastructure Development ERC’s extensive infrastructure investments position it as the exclusive utilities and services provider – a model that generates sustainable cash flows Water & Irrigation Power & Electricity Communication ERC invests in desalination plants and delivers ERC’s power distribu
Slide 18: Water & Irrigation
Water & Irrigation Management of ERC’s desalination plant and water treatment equipment is subcontracted for a fixed fee, while water is sold at market rates Water & Irrigation Sewage Treatment Pricing 14,000m3/day desalination plant 7,500m3/day waste water treatment facility Volume and quality-base
Slide 19: Power & Electricity
Power & Electricity ERC is a licensed electricity generator and distributor with an electricity sub-station in the design phase Key Facts Operational Update 20 MVA capacity A contract was signed with Canal Company to supply 20 MVA of electricity An approval was received to establish a 22/66 KV subst
Slide 20: Communication
Communication ERC’s IT equipment and fiber optic networks support high-speed internet, video on demand, internet protocol television among other services Key Facts Key Facts (Continued) Pricing 13,000 m optical fiber network iBAHN, leading IPTV, Video on Demand (VOD) service provider, serving all el
Slide 21: Infrastructure Development Forward-Looking Strategy
Infrastructure Development Forward-Looking Strategy ERC aims to restructure its infrastructure assets as unique revenue generating centers under an independent entity to unlock their growth potential Production / Treatment Distribution Power Substation Desalination Power Distribution Networks Desali
Slide 22: Facilities Management
Facilities Management ERC provides a comprehensive range of maintenance and facility management services Facility Management Capabilities Public Area & Beach Community Brand & Security Waste Management Cleaning Quality & Design Control Maintenance Reputation Management Community management controls
Slide 23: Overview of Sahl Hasheesh
a Overview —_ of Sahl Hasheesh Sahl Hasheesh a <4
Slide 24: Sahl Hasheesh: ERC's Flagship Master Development
Sahl Hasheesh: ERC’s Flagship Master Development Sahl Hasheesh is a unique, purpose-built Red Sea destination 18 km south of Hurghada International Airport and approximately 470 km from Cairo. The year-round development is situated on a bay long renowned as a world-class diving and seaside destinati
Slide 25: Sahl Hasheesh By Numbers
Sahl Hasheesh By Numbers Phases I and II of Sahl Hasheesh are currently home to around 2,760 hotel rooms and suites managed by brands including Premier Le Rêve, Premier Romance, Pyramisa, Tropitel, Old Palace and Baron, and Azzurra Boutique Hotel in addition to 2,300 residential units. Five of our h
Slide 26: The Number One Red Sea Destination
The Number One Red Sea Destination Sahl Hasheesh has become the prominent destination on the Red Sea coast with year-around activities and events for residents and visitors alike Daily Activities Sports Snorkeling & Spas & Shopping Dining A haven for sports Diving Wellness International brands A ran
Slide 27: Year-Round Events & Activities
Year-Round Events & Activities ERC’s marketing efforts have placed Sahl Hasheesh firmly on the map as one of Egypt’s top coastal destinations among foreigners and Egyptians alike. During 2017, ERC organized a number of new events, ranging from sporting events and beach parties to CSR activities, dem
Slide 28: Promotional Activities
Promotional Activities A major focus of our With the growing popularity We have also continued our Following the success of New Internationally, Sahl Hasheesh marketing activities in 2017 of Tawaya, efforts have also efforts to position ourselves Years Eve '16 with Ganzoury is continuing to position
Slide 29: Operational & Financial Update
Operational & Financial Update
Slide 30: Financial Performance | Income Statement Highlights
Financial Performance | Income Statement Highlights Net Revenue (EGP mn) ERC realized revenues of EGP 107.2 mn from land sales during 9M 2017 (vs. EGP 29.1 mn in land sales during 9M 2016) consisting of land sales of EGP 102.2 mn and EGP 4.9 mn related to the Jamaran development. 400 31% Tawaya,
Slide 31: Financial Performance | Balance Sheet Highlights
Financial Performance | Balance Sheet Highlights Consolidated Liquid Assets and Liabilities (EGP mn) Cash & TB Total Receivables Current L. Long Term L. 749 690 1,285 1,350 274 444 332 384 261 620 192 208 216 227 236 675 735 336 329 342.0 463.3 309 248 274 239 260 271 252 272 200.0 162.0 108.9 98 13
Slide 32: Governance & Sustainability
Governance & Sustainability
Slide 33: Corporate Governance
Corporate Governance ERC believes that a robust, proactive approach to corporate governance is vital to the interests of both the individual company — boosting investor confidence by protecting the value of their shares — and the business community by providing a regulatory framework for healthy com
Slide 34: Sustainability
Sustainability ERC is committed to actively giving back to Egyptian society by engaging in ethical business practices as well as organizing and sponsoring a variety of corporate social responsibility initiatives every year Doing Business to Promote Development Giving Back through CSR Initiatives • D
Slide 35: Investor Information
7 Investor Information S A — a
Slide 36: Stock Information
Stock Information EGTS.CA Red Sea Hotels 21.0% First Arabian Company Issued Shares 1,050,000,000 Shares Misr Insurance 47.5% Listing Venue 10.0% Rowad Tourism Company The Egyptian Stock Exchange 8.1% Misr for Life Insurance Listing Date 6.5% Others 10/02/1999 7.0% Analyst Coverage Name: Sara Boutros
Slide 37: Stock Information
Stock Information Egyptian Resorts Co SAE – Stock Performance Chart EGTS Volume EGTS 3.0 2.5 600 EGX 30 Rebased EGTS Rebased Jamaran sells SHC & PHD MPC cuts ERC signs MPC raises MPC raises ERC CEO MPC raises out, generating launch interest rates contract with rates by 50 rates by 150 Mohamed rates
Slide 38: Financial Statements
a Financial Statements SS A OO a
Slide 39: Consolidated Income Statement
Consolidated Income Statement EGP Q3-2017 Q3-2016 Change 9M-2017 9M-2016 Change FY2016 FY2015 Sales Operating Revenue 5 851 351 32 823 758 -82% 126 121 763 38 703 769 226% 168 889 169 372 696 703 Sales Return - - - ( 780 847) ( 9 768 139) -92% (9 768 139) (18 805 236) Revenue from rendered services
Slide 40: Consolidated Balance Sheet
Consolidated Balance Sheet EGP 31-12-16 30-06-17 30-09-17 Fixed Assets (net) 121,861,072 112,551,595 108 404 961 Real Estate Investments 145,977,861 145,457,928 145 198 706 Projects in Progress 1,624,746 7,075,773 7 861 489 Long Term Time Deposits 46,733,750 44,345,000 43 414 000 Accounts and Notes
Egyptian Resorts Company — Q3 2017 Earnings Presentation on 6ix