Amer Group Holding · EGX:AMER
Amer — Investor Presentation (September 2011)
44 slides from Amer's investor presentation, September 2011
Slide 1: Investor Presentation
April 2011 Investor Presentation September 2011 Strictly Private and Confidential Beltone Investment Banking March 2011
Slide 2: Table of Contents
Table of Contents Table of Contents Page Section 1 Amer Synopsis 2 Section 2 Latest Corporate Developments 10 Section 3 Existing Projects Updates 17 Section 4 Financial Highlights 23 Section 5 The Strategy Going Forward 28 Appendix 30 2 Private and Confidential: For personal use only and not for dis
Slide 3: Section 1: Amer Synopsis
Section 1: Amer Synopsis Private and Confidential: For personal use only and not for distribution or copying
Slide 4: Amer Group: Master of Local Brands
Amer Group: Master of Local Brands Real Estate Restaurants Meeting Points Hotels 5 operational 5 operational brands 4 operational 4 operational 3 under construction 6 under construction 3 under construction 3 under design 4 under design 1 under design Affiliated with Contracting
Slide 5: Porto World's Core Menu
Porto World’s Core Menu 5 Private and Confidential: For personal use only and not for distribution or copying
Slide 6: Our Value Creating Process
Our Value Creating Process Sales of residential units are off-plan, while construction commences once a considerable level of booking is achieved Purchase of land or utilize revenue and profit-sharing agreements 1 Secure land and design 6 project 2 Amer offers leaseback Used as a marketing tool serv
Slide 7: Unparalleled Sales Force
Unparalleled Sales Force Cumulative Sales | Units 10,515 9,972 10,091 8,462 7,570 4,280 1,524 188 2005 2006 2007 2008 2009 2010 Q1 2011 Q2 2011 The Group’s developments were sales have commenced 7 Private and Confidential: For personal use only and not for distribution or copying
Slide 8: Impressive Development Capacity
Impressive Development Capacity Porto Marina January 2005 June 2006 Golf Porto Marina June 2006 18 months later 8 Private and Confidential: For personal use only and not for distribution or copying
Slide 9: Proven Track Record
Proven Track Record Porto Sokhna 2007 2009 2009 2011 Porto Tartous 9 Private and Confidential: For personal use only and not for distribution or copying
Slide 10: Ambitious Expansion Plan in the Pipeline
Ambitious Expansion Plan in the Pipeline Porto South Beach, Ain Sokhna, Egypt Porto Residence, North Coast Porto Matrouh, Marsa Matrouh, Egypt Porto Cairo, New Cairo, Egypt Porto Fayoum, Fayoum, Egypt Porto Pyramids, Giza 10 Private and Confidential: For personal use only and not for distribution or
Slide 11: Section 2: Latest Corporate Developments
Section 2: Latest Corporate Developments Private and Confidential: For personal use only and not for distribution or copying
Slide 12: Pre-IPO and Current Shareholding Structure
Pre-IPO and Current Shareholding Structure Pre-IPO Shareholding Structure Current Shareholding Structure Mohamed El-Amin Ragab Other Shareholders Free Float 8% 0% 20% Mansour Amer SOL Global Holding Ltd. 1 15% 35% Fineby SOL Global Holding Ltd. 1 4% 44% Mohamed El-Amin Ragab 7% Mansour Amer 12% Amer
Slide 13: Key Milestones Post IPO
Key Milestones Post IPO Secured a 2.8 million sqm Listing shares of the Payment of EGP 20 land plot in Fayoum from Opened two IPO capital increase million dues and Tourism Development restaurants, Chili’s and installments of Porto Authority , via an auction Launched sales of Studio Masr, i
Slide 14: Impact of Recent Events on Amer Group's Projects has been Contained
Impact of Recent Events on Amer Group’s Projects has been Contained The pace of construction has declined by 30% during the 2-week period following the start of the events due to the logistical impact of the curfew imposed by the government and difficulty in transportation Construction has picke
Slide 15: Expansion Plans Remain Intact
Expansion Plans Remain Intact The group opened its first restaurants outside of Egypt Chili’s and Studio Masr are operating in Tartous Studio Masr is operational in KSA The group signed an agreement with a UAE group Balhasa to franchise Studio Masr, opening restaurants over the coming five y
Slide 16: Strong Commitment to Delivery Schedule
Strong Commitment to Delivery Schedule The group remains committed to meet its delivery schedule across its various projects i.e. Golf Porto Marina and Islands, Golf Porto Sokhna, Porto Cairo and Porto South Beach Amer Group has managed to deliver 655 units during Q1 2011 Number of Units 931 928
Slide 17: Speeding Up Delivery While Preserving Cash
Speeding Up Delivery While Preserving Cash Efficient Inventory Management Starting mid March, the group has granted its clients, who have purchased units from its various projects but have not been delivered or built yet, the option to exchange the unit they acquired for another unit from within t
Slide 18: Section 3: Existing Projects Updates
Section 3: Existing Projects Updates Private and Confidential: For personal use only and not for distribution or copying
Slide 19: The Operational Residential Developments
The 5 Operational Residential Developments El Alamein, Egypt El Alamein, Egypt Ain Sokhna, Ain Sokhna, New Cairo, Egypt Egypt Egypt Land Area, 000s sqm 68.0 1,820.6 152.0 2,175.0 137.8 Number of units 931 9280 1,632 4,752 70 Units sold (69% sold) 1 (49% of Phase 1 sold) 2 (88% sold) 1 (73% sold) 1 (
Slide 20: The Most Attractive Dining Spots
The Most Attractive Dining Spots A franchised brand, offers a selection of American and Mexican dishes By the end of Q2 2011, operates 17 restaurants with total 4242 seats Recently opened a new restaurant in Porto Tartous in Syria A franchised brand, offers a selection of dishes reflecting s
Slide 21: Meeting Points: Offering a different Proposition
Meeting Points: Offering a different Proposition El Alamein, Egypt El Alamein, Egypt Ain Sokhna, New Cairo, Egypt Egypt Net Leasable area Indoor (13.4) + Indoor (7.8)+ Indoor (10.4) + Indoor (9.1) + 000s sqm Outdoor (3.1) Outdoor (1.0) Outdoor (1.7) Outdoor (3.3) Number of tenants 98 69 35 60 Occupa
Slide 22: Hotels: a key component in each Porto Development
Hotels: a key component in each Porto Development El Alamein, Egypt El Alamein, Egypt Ain Sokhna, Tartous, Syria Egypt Number of 379 138 94 55 operational rooms Occupancy Rate 95% 88% 95% 50% Occupancy rates based on season 22 Private and Confidential: For personal use only and not for distribution
Slide 23: Arabtec Egypt: Awarded Contracts Worth EGP 583 million
Arabtec Egypt: Awarded Contracts Worth EGP 583 million Arabtec Egypt was established by Amer Group with the vision to become the Group’s construction arm across its various projects It aims at widening its clientele base and expanding its operations in the Egyptian market through targeting other
Slide 24: Section 4: Financial Highlights
Section 4: Financial Highlights Private and Confidential: For personal use only and not for distribution or copying
Slide 25: Healthy Profitability Levels
Healthy Profitability Levels The operating profit and net profit margins continued to improve steadily in spite of the Company’s increasing investment in manpower and selling & marketing expenses that is normally required to achieve such growth The Company has a sales backlog of EGP 2.2 (1) bill
Slide 26: Solid Financial Position
Solid Financial Position Amer Group’s Debt Position 1 Return on Average Equity 80% 250 1.0 70% 67% 65% 106 62% 69 53 0.8 50 60% 50% 2007 2008 2009 2010 1H 2011 0.6 -80 38% -150 40% 0.4 30% -350 0.2x 20% 0.2 0.2x 0.1x 10% -550 -524 0.0 0% 2007 2008 2009 2010 Net Debt Net Debt-to-Equity The Company
Slide 27: Segments Financials
Segments Financials Revenues Operating Profit 2000 800 CAGR: 73% 644 CAGR: 62% 1500 600 1,256 1,273 516 Half Years Comparison Half Years Comparison 1000 400 Real Estate EGP mn EGP mn 735 269 269 538 545 228 500 200 123 297 0 0 2007 2008 2009 2010 1H 2010 1H 2011 2007 2008 2009 2010 1H 2010 1H 2011 R
Slide 28: Segments Financials
Segments Financials Hotels Revenues Ongoing Restructuring Plans 60 CAGR: 30% The group is currently undergoing restructuring 53 49 procedures aimed at achieving huge cost savings which will eventually enhance the profitability of 40 36 Half Years Comparison this business line 24 20 The summer se
Slide 29: Section 5: The Strategy Going Forward
Section 5: The Strategy Going Forward Private and Confidential: For personal use only and not for distribution or copying
Slide 30: A Well-Built Strategy
A Well-Built Strategy New Company Launches in Egypt Specific Expanding into Primary Homes Designs of Porto Matrouh is complete In an attempt to further diversify its and the group is currently awaiting business operations, the company will the license to launch residential sales continue to pene
Slide 31: Appendix
Appendix Private and Confidential: For personal use only and not for distribution or copying
Slide 32: Amer Group: Master of Local Brands
Amer Group: Master of Local Brands Real Estate Contracting Education New Ventures Malls Restaurants Hotels 4 operational 4 operational Affiliated with 5 operational 6 under construction 3 under construction 3 under construction CSR 4 under design 3 under design 1 under design Fayoum 32 Private and C
Slide 33: Amer Group: Diversified Projects Portfolio
Amer Group: Diversified Projects Portfolio Syria Porto Tartous Porto Marina Golf Porto Marina & Porto Residence Porto Islands Alamein Matrouh Cairo Porto Sokhna Porto Matrouh Ain Sokhna Fayoum Egypt Golf Porto Sokhna Porto Cairo Porto Fayoum Porto Pyramids Porto South Beach 33 Private and Confidenti
Slide 34: The Group's Business Model is Built on Solid Operational and Financial Foundations
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 Business Model 5 Capital Efficient
Slide 35: 1. Strong Demand in the Group's Target Markets
1. Strong Demand in the Group's Target Markets Strong Underlying GDP Growth… …Supporting a Rise in GDP per capita… 8% 20% 7% 7% 18% 18% 18% 6% 16% 6% 14% 14% 5% 14% 12% 4% 5% 5% 5% 12% 10% 4% 3% 10% 3% 3% 7% 8% 6% 2% 1% 4% 2% 1% 0% 0% 2008 2009 2010E 2011E 2008 2009 2010E 2011E 1 Egypt Syria MENA Eg
Slide 36: 2. 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 SPORTS FACILITIES KIDS EVENTS PROMENADE – Premium Pricing – Lower Marketing Expenses RESULTS CABLE CAR PORTO HOME HOTELS M’GMT VACATION CLUB –
Slide 37: 3. Track Record of Effective Execution
3. Track Record of Effective Execution At Start of Construction Post Construction Around 10,000 units sold by Amer Group demonstrating customers acceptance of the Porto concept and proven track record in execution 37 Private and Confidential: For personal use only and not for distribution or copying
Slide 38: 4. 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 39: 5. Capital Efficient Business Model
5. Capital Efficient Business Model Land Acquisition Process Historical Debt Levels 250 1.0 · Securing land capable of being developed immediately to 106 69 avoid long development obligations (i.e., lower exposure 50 53 0.8 to cyclical downturns) 2007 2008 2009 2010 1H 2011 0.6 · -80 EGP mn No servi
Slide 40: 6. Strong Management with Significant Operational Expertise
6. Strong Management with Significant Operational Expertise Mansour Amer Omar Amer Mohamed El Sayed Founder, Chairman and CEO Vice Chairman & Chief Vice Chairman – Started in real estate development Business Development – Previously responsible for Officer developing Porto World in 1989 – In c
Slide 41: The Group's Strategy Remains Focused
The Group’s Strategy Remains Focused 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 Exp
Slide 42: While Recognizing its Corporate Social Responsibility
While Recognizing its 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 trai
Slide 43: Consolidated Income Statement
Consolidated Income Statement All figures in EGP million 2007 2008 2009 2010 1H 2011 Revenue* 445.2 937.9 1,491.9 1,548.3 649.2 COGS -238.0 -483.9 -838.1 -747.3 -371.3 Gross Profit 207.1 454.0 653.8 801.0 278.0 Selling and Marketing Expenses -23.4 -90.4 -65.7 -67.9 -22.3 General & Administrative Exp
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet All figures in EGP million 2007 2008 2009 2010 1H 2011 All figures in EGP million 2007 2008 2009 2010 1H 2011 Current Assets Current Liabilities Development properties 846.9 1,727.9 1,862.6 2,146.3 2,125.0 Provisions 13.7 31.0 5.3 11.1 13.6 Inventory 18.3 20.5 24.1 30.3 29
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