Palm Hills Development Co. · EGX:PHDC
Palm Hills Development — Palm Hills Developments — Investor Presentation (September 2016)
59 slides from Palm Hills Development's investor presentation, September 2016
Slide 1: Investor Presentation September 2016
Palm Hills Developments | January 2015 Investor Presentation September 2016
Slide 2: Disclaimer
DISCLAIMER This presentation is being provided to you on a confidential basis and may not be distributed or reproduced in any form. 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 o
Slide 3: Table of Content
Table of Content Introduction Projects Overview Financial Review Building on Success 5 9 14 18 Why invest? Appendix 28 31 Palm Hills Developments | 2016 | Investor Presentation 3
Slide 4: Introduction
Introduction
Slide 5: PHD Synopsis
INTRODUCTION PHD Synopsis Key Facts (1) Ownership Structure (2) Shareholders by Country (2) Aabar Revenue Backlog Cumulative Sales Investments, USA, 5.7% Ripplewood, 5.5% EU, 2.7% EGP9.1 bn EGP22.3 bn 2.5% UK, 4.8% Receivables Recognized Revenue Free Float, EGP9.0 bn EGP13.2 bn 14.9% MMID, 42.5% MEN
Slide 6: Well diversified projects' portfolio over a land bank of 27 mn sqm
INTRODUCTION Well diversified Projects’ Portfolio, spreading over a land bank of 27 mn sqm Projects Under Development Raw Land Available for Development Completed Projects („000 sqm) Residential Commercial („000 sqm) Residential Commercial („000 sqm) Residential Commercial Cairo West Golf Views 2,04
Slide 7: Clear 4-Pillar Growth Strategy
INTRODUCTION Clear 4-Pillar Growth Strategy 6 43 500 – 6,000 Offsetting residential 757k sqm 25% New projects in the Co-development feddan/land parcels real estate earnings Targeted contribution Of undeveloped retail, office & leisure Agreements targeted for residential & volatility via of commercia
Slide 8: Projects Overview
Projects Overview
Slide 9: Projects' Portfolio
PROJECTS OVERVIEW Projects’ Portfolio 1 West Cairo 2 North Coast 3 East Cairo Development projects: Development projects: Development projects: Palm Hills October Hacienda Bay Hacienda White Palm Hills Katameya Golf Views Katameya Extension Golf Extension The Village 2 1 3 Palm Parks The Village Gat
Slide 10: West Cairo
PROJECTS OVERVIEW West Cairo Projects Location / Photos Projects Key Facts Revenue Backlog Cumulative Sales EGP3.8 bn EGP10.4 bn Receivables Recognized Revenue EGP3.9 bn EGP6.6 bn Av. for Sale Inventory Ongoing Projects EGP5.8 bn, 6 projects in 1,363 units development phase Delivered Projects Delive
Slide 11: East Cairo
PROJECTS OVERVIEW East Cairo Projects Location / Photos Projects Key Facts (1) Revenue Backlog Cumulative Sales EGP2.9 bn EGP6.5 bn Receivables Recognized Revenue EGP2.8 bn EGP3.6 bn Av. for Sale Inventory Ongoing Projects EGP18.5 bn, 6 projects in 6,918 units development phase Delivered Projects De
Slide 12: North Coast
PROJECTS OVERVIEW North Coast Projects Location / Photos Projects Key Facts (1) Revenue Backlog Cumulative Sales EGP2.4 bn EGP5.4 bn Receivables Recognized Revenue EGP2.1 bn EGP3.0 bn Av. for Sale Inventory Ongoing Projects EGP5.4 bn, 2 projects in 1,417 units development phase Delivered Projects De
Slide 13: Financial Review
Financial Review
Slide 14: Income Statement: Changes in accounting policies results in deferred profits
FINANCIAL REVIEW Income Statement: Changes in accounting policies results in deferred profits Revenue (EGP MN) Gross Profit (EGP MN) EBITDA (EGP MN) CAGR3 = 82% CAGR3 = 76% CAGR3 = 68% 654 3,492 33% 31% 41% 28% 1,082 24% 24% 28% 412 16% 23% 603 502 333 2,106 2,143 589 705 15% 1,476 140 959 218 392 (
Slide 15: Balance Sheet: Deleveraging underway via monetization of receivables
FINANCIAL REVIEW Balance Sheet: Deleveraging underway via monetization of receivables Net Debt/EBITDA Receivables/Net Debt Net Debt/Equity Bank Debt (EGP MN) Bank Debt/EBITDA Receivables (EGP MN) Receivables/Bank Debt Equity (EGP MN) Bank Debt/Equity 8.49 5.21 0.37 0.38 0.42 8,998 6,157 2,444 5,873
Slide 16: Unit Deliveries & Construction Spending, reaching EGP1.1 bn in 1H2016
FINANCIAL REVIEW Steady focus on Unit Deliveries & Construction Spending, reaching EGP1.1 bn in 1H2016 Construction Progress(3) Inventory Breakdown (Delivery/Backlog) Unit Deliveries (Percentage Completed) Completed Remaining Total CAGR1 =50% 1,573 14,677 30% 347 Launched Non 981 70% 12,774 1,903 49
Slide 17: Building on Success
Building on Success
Slide 18: Co-Development of the 500 Feddan Project
BUILDING ON SUCCESS Co-Development of the 500 Feddan Project Project Location Master plan1 Phase 1 master plan Cairo – Suez road Madinaty Project Key Facts Recent Developments Project KPIs (Residential Only)2 Land Area 2,100,000 sqm ♦ SWA Group has finalized the project‟s master plan in July 2016. E
Slide 19: Co-Development Project with MNHD
BUILDING ON SUCCESS Co-Development Project with MNHD – Pre-Sales launched in 4Q2015 Project Location Master plan Design Perspective Capital Gardens Madinaty Project Key Facts Recent Developments Project KPIs Land Area 433,650 sqm ♦ Project launched in December 2015, with New Sales Expected Revenue E
Slide 20: Co-Development project with private land owners in North Coast
BUILDING ON SUCCESS Co-Development project with private land owners in North Coast Project Overview Project Location ♦ In February 2016, PHD signed an agreement with the purpose of co-developing – on a revenue sharing basis – an integrated resort in the North Coast spreading over 565,523 sqm (approx
Slide 21: Internally Funded Residential Projects
BUILDING ON SUCCESS Internally Funded Residential Projects Enhancing Existing Projects Hacienda Bay Extension Palm Valley Palm Katameya Extension Phase 2 ♦ Capitalizing on the success of its Hacienda Bay project in ♦ Located directly on 26 July highway, and at the door ♦ PHD finalized negotiations w
Slide 22: Co-Development of an Integrated Mixed Use Community over 6,000 feddan
BUILDING ON SUCCESS Co-Development of an Integrated Mixed Use Community over 6,000 feddan Project Overview PHD’s Role as Master Developer ♦ PHD and Aabar Investments jointly signed an MOU with the Ministry of Housing for the ♦ As Master Developer, PHD possesses certain rights development of a compre
Slide 23: Consortium of Advisors for the 6,000 feddan Master Plan
BUILDING ON SUCCESS Co-Development of an Integrated Mixed Use Community over 6,000 feddan (Cont’d) PHD Appointed a Word Class Consortium of Advisors to design the Master Plan 1 Financial Advisor 2 Engineering Consultant 3 Planning and Building Consultant France ♦ Provides assurance, auditing, techno
Slide 24: Strong plans to grow the Commercial Sector
BUILDING ON SUCCESS Strong plans to grow the Commercial Sector Commercial Segment Overview ♦ PHD has set up Palm Hills Investments (PHI) to focus on developing its commercial strategy as it embarks on a commercial strategy whose primary goal is minimizing the fluctuations inherent in real estate ear
Slide 25: Neighborhood & Community Malls
BUILDING ON SUCCESS Neighborhood & Community Malls Neighborhood Malls Community Malls Village Gardens Katameya Mall Village Gate Street 88 ♦ A fully integrated commercial facility located in- ♦ Village Gate mall is a commercial mall in East Cairo, ♦ Street 88 is a c.5,400 GLA community mall serving
Slide 26: Leisure and Office Buildings
BUILDING ON SUCCESS Neighborhood & Community Malls Leisure Office Buildings Palm October Club Phase 8 Office Building Woodville Office Building ♦ PHD is looking to expand its Palm October Club ♦ An office building is being constructed in Phase 8 of ♦ Another office building is being considered to be
Slide 27: Why invest?
Why invest?
Slide 28: PHD offers a unique value proposition
WHY INVEST? PHD offers a unique value proposition The only listed Egyptian real- estate developer that PHD delivered more than 11 10 delivered 5,130 Highly experienced Board Executives, with hands-on members, actively experience, in managing & 11 4 Homes since inception involved in steering the exce
Slide 29: Appendix
Appendix
Slide 30: Table of Content
Table of Content Egypt History Financial Statements Corporate Structure 32 33 34 37 Board of Directors Management Team Peer Analysis Projects Portfolio 38 39 40 44 Palm Hills Developments | 2016 | Investor Presentation 30
Slide 31: Egypt Macro-Economic Overview
EGYPT Macro-Economic Overview GDP Growth Inflation Rate Housing Units Supply & Investments (2014/2015) Source: IMF # of Units (000's) Housing Investments (EGP Mn) Source: IMF 4.30% Source: CAPMAS 276 4.2% 11.09% 11.0% 10.10% 9.60% 9.50% 3.30% 8.65% Total Housing Units: 352K 6.91% 28,588 2.22% 2.10%
Slide 32: PHD's Milestones
HISTORY PHD’s Milestones ♦ PHD appoints SWA Group, whom have ♦ Al Ethadia established to serve as the successfully finalized the master plan of investment vehicle for the Palm Hills the co-development project with NUCA. October residential development in ♦ Invested over EGP 1 bn to expedite ♦ PHD in
Slide 33: Income Statement
FINANCIAL STATEMENTS Income Statement1 EGP 000 1H2016 R 1H2015 R Change 1H2016 BR 1H2015 BR Change Revenue2 2,143,208 1,476,306 45% 2,306,438 1,494,776 54% Cost of revenue (1,554,240) (873,679) 78% (1,526,938) (845,021) 81% Gross profit 588,967 602,627 (2%) 779,500 649,755 20% Margin % 27% 41% (14pp
Slide 34: Balance Sheet
FINANCIAL STATEMENTS Balance Sheet1 EGP '000 June 30, 2016 Dec 31, 2015 R EGP '000 June 30, 2016 Dec 31, 2015 R Long-Term Assets Current Liabilities (Continued) Investments in Associates 75,531 78,506 Due to Related Parties 199,188 226,319 Investment Property 854,665 854,665 Investment Purchase Liab
Slide 35: Cash Flow Statement
FINANCIAL STATEMENTS Cash Flow Statement1 EGP '000 June 30, 2016 June 30, 2015 EGP '000 June 30, 2016 June 30, 2015 Net Profit for the period (before income tax & non-controlling interest) 338,305 637,986 Change In Notes Payable 409,522 (160,218) Change In Suppliers & Contractors (58,119) 149,348 Ad
Slide 36: Subsidiaries & Projects
CORPORATE STRUCTURE Subsidiaries & Projects Palm Hills Development Palm Hills Botanica Bamboo Cascade Golden Palm Golf Extension Woodville Golf Views SAE Katameya New East Cairo for Palm Hills Middle New Cairo for Real Estate Saudi Urban Palm Hills for Macor for Securities Real Estate East Co. for R
Slide 37: Board of Directors Biographies
BOARD OF DIRECTORS Biographies Board of Directors Board Members Board Member Position Yasseen Mansour Mr. Yasseen Mansour serves as Chairman of the Board of Directors of PHD, and has guided the Company from a single-project entity into a leading real estate player in Egypt. Mansour began his career
Slide 38: Management Team Biographies
MANAGEMENT TEAM Biographies Executive Management Dr. Azza El Bendary Dr. Azza El Bendary has more than 20 years of experience, with half those spent specifically in the human resources field. She is currently responsible for the development and implementation of the corporate human resources and adm
Slide 39: PHD maintained its #2 position following TMG in terms of Revenue
PEER ANALYSIS PHD maintained its #2 position following TMG in terms of Revenue. 1H2016 results surpassed most peers1 on various fronts except Net Profit after Minority Interest Revenue Gross Profit & Margin 2,925 936 2,143 58% 673 1,781 589 38% 1,381 413 27% 32% 37% 30% 292 232 622 502 TMGH AMER/POR
Slide 40: PHD ranked second in New Sales and third in Unit Deliveries
PEER ANALYSIS PHD ranked second in terms of New Sales following TMG, and third in terms of Units Deliveries New Sales Units Deliveries 3,757 3,430 3,000 1,856 1,640 1,516 (1) 825 500 302 123 N/A N/A (1) TMGH AMER/PORT MNHD SODIC EMFD PHDC TMGH AMER/PORT MNHD SODIC EMFD PHDC Notes: (1) TMG‟s units de
Slide 41: PHD's Balance Sheet maintained a strong position
PEER ANALYSIS PHD’s Balance Sheet maintained a strong position Net Cash (Net Debt) / Equity Net Cash (Net Debt) / EBITDA (2) Equity "EGP MN" Net Cash (Net Debt)/Equity Net Cash (Net Debt) "EGP MN" Net Cash (Net Debt)/EBITDA "Annualized" 26,888 4.21 0.56 4,134 0.06 (0.03) (0.09) 0.38 (0.11) 110 (1.51
Slide 42: PHD continue to trade at Book Value
PEER ANALYSIS PHD continue to trade at Book Value Market Capitalization / sqm of Land (EGP) (1) Price to Earnings (P/E) (1) 791 26.3 773 17.5 14.5 15.5 13.2 351 292 263 268 8.8 TMGH AMER/PORT MNHD SODIC EMFD PHDC TMGH AMER/PORT MNHD SODIC EMFD PHDC Price to Book Value (P/B) (1) 7.5 1.5 1.3 1.6 1.0 0
Slide 43: West Cairo | Palm Hills October
PROJECTS PORTFOLIO West Cairo | Palm Hills October Project Location 2014 2016 Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 1,660k sqm Delivered Units 733 76 Built Up Area 145k sqm Recognized Revenue EGP606 mn No. of Units 750 Sales Backlog EGP44 mn T
Slide 44: West Cairo | Bamboo Extension
PROJECTS PORTFOLIO West Cairo | Bamboo Extension Project Location 2014 2016 Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 168k sqm Delivered Units 145 Built Up Area 65k sqm Recognized Revenue EGP347 mn No. of Units 149 Sales Backlog EGP6.2 mn Type of
Slide 45: West Cairo | Golf Views
PROJECTS PORTFOLIO West Cairo | Golf Views Project Location 2012 2016 Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 2,050k sqm Delivered Units 218 493k sqm 769 Built Up Area Recognized Revenue EGP2,195 mn 40% No. of Units 685 Sales Backlog EGP1,112 mn
Slide 46: West Cairo | Golf Extension
PROJECTS PORTFOLIO West Cairo | Golf Extension Project Location 2012 2016 Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 979k sqm Delivered Units 155 Built Up Area 427k sqm Recognized Revenue EGP1,620 mn 1,383 41% No. of Units 966 Sales Backlog EGP909
Slide 47: West Cairo | Woodville
PROJECTS PORTFOLIO West Cairo | Woodville Project Location 2016 2016 Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 321k sqm Delivered Units None so far 5% Built Up Area 178k sqm Recognized Revenue EGP375 mn No. of Units 475 729 792 Sales Backlog EGP41
Slide 48: West Cairo | Palm Parks
PROJECTS PORTFOLIO West Cairo | Palm Parks Project Location 2012 2016 Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 475k sqm Delivered Units 239 Built Up Area 380k sqm 31% Recognized Revenue EGP218 mn 879 No. of Units 1,182 Sales Backlog EGP662 mn Apa
Slide 49: West Cairo | CASA
PROJECTS PORTFOLIO West Cairo | CASA Project Location 2012 2016 CASA Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 294k sqm Delivered Units 1,061 41 Built Up Area 274k sqm Recognized Revenue EGP917 mn No. of Units 1,154 Sales Backlog EGP80 mn Type of
Slide 50: East Cairo | Palm Hills Katameya
PROJECTS PORTFOLIO East Cairo | Palm Hills Katameya Project Location 2012 2016 Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 928k sqm Delivered Units 172 11% 124 Built Up Area 320k sqm Recognized Revenue EGP1,817 mn No. of Units 516 Sales Backlog EGP3
Slide 51: East Cairo | Palm Hills Katameya Extension
PROJECTS PORTFOLIO East Cairo | Palm Hills Katameya Extension Project Location 2012 2016 Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 275k sqm Delivered Units 106 12% 40 Built Up Area 114k sqm Recognized Revenue EGP691 mn No. of Units 305 Sales Backl
Slide 52: East Cairo | Village Gardens Katameya
PROJECTS PORTFOLIO East Cairo | Village Gardens Katameya Project Location 2012 2016 Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 285k sqm Delivered Units 628 2% Built Up Area 239k sqm Recognized Revenue EGP601 mn 4 No. of Units 1,120 Sales Backlog EG
Slide 53: East Cairo | The Village
PROJECTS PORTFOLIO East Cairo | The Village Project Location 2011 2016 Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 105k sqm Delivered Units 464 Built Up Area 67k sqm Recognized Revenue EGP290 mn 1 No. of Units 468 Sales Backlog EGP4 mn Type of Units
Slide 54: East Cairo | Village Gate
PROJECTS PORTFOLIO East Cairo | Village Gate Project Location 2012 2016 Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 131k sqm Delivered Units 151 18% Built Up Area 110k sqm 19 Recognized Revenue EGP148 mn No. of Units 686 Sales Backlog EGP577 mn Type
Slide 55: East Cairo | Village Avenue
PROJECTS PORTFOLIO East Cairo | Village Avenue Project Location 2012 2016 Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 35k sqm Delivered Units 49 4% Built Up Area 28k sqm Recognized Revenue EGP78 mn No. of Units 96 Sales Backlog EGP83 mn Type of Unit
Slide 56: North Coast | Hacienda Bay
PROJECTS PORTFOLIO North Coast | Hacienda Bay Project Location 2012 2016 Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 2,411k sqm Delivered Units 838 Built Up Area 549k sqm Recognized Revenue EGP2 bn 37% 2,227 No. of Units 2,194 Sales Backlog EGP1.3 b
Slide 57: North Coast | Hacienda White 1
PROJECTS PORTFOLIO North Coast | Hacienda White 1 Project Location 2012 2016 Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 215k sqm Delivered Units 167 15% 23 Built Up Area 58k sqm Recognized Revenue EGP447 mn No. of Units 302 Sales Backlog EGP156 mn
Slide 58: North Coast | Hacienda White 2
PROJECTS PORTFOLIO North Coast | Hacienda White 2 Project Location Concept Concept Project Key Facts Inventory Breakdown Percentage of Completion (EGP MN) Project KPIs Land Area 472k sqm Delivered Units 3 Built Up Area 156k sqm 22% Recognized Revenue EGP480 mn 699 No. of Units 824 Sales Backlog EGP9
Slide 59: Investor Relations Contacts
INVESTOR RELATIONS Contacts Mamdouh Abdelwahab Investor Relations & Investments Director Headquarters Investor.relations@phdint.com Ahmed Nour El-Din Hassan Direct: +202 35351200 Smart Village, A4 – B84 Investor Relations Manager Kilo 28, Cairo/Alexandria Desert Road Radwa Abu El Naga Extension: 123
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